ISSUED BY THE FEDERAL RESERVE BOARD - … BY THE FEDERAL RESERVE BOARD AT WASHINGTON DECEMBER, 1917 WASHINGTON GOVERNMENT PRINTING OFFICE 1917 Digitized for FRASER ... FEDERAL RESERVE

ISSUED BY THE

FEDERAL RESERVE BOARDAT WASHINGTON

DECEMBER, 1917

WASHINGTONGOVERNMENT PRINTING OFFICE

1917

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD.

EX OFFIGIO MEMBERS.

WILLIAM G. MCADOO,

Secretary of the Treasury,Chairman.

JOHN SKELTON WILLIAMS,

Comptroller of the Currency.

W. P. G. HARDING, Governor.PAUL M. WARBURG, Vice Governor.FREDERIC A. DELANO.

ADOLPH 0. MILLER.

CHARLES S. HAMLIN.

H. PARKER WILLIS, Secretary.

SHERMAN ALLEN, Assistant Secretary and FiscalAgent.

M. G. ELLIOTT. Counsel.

SUBSCRIPTION PRICE OF BULLETIN.

The Federal Reserve Bulletin is distributed without chargeto member banks of the system and to the officers and directorsof Federal Reserve Banks. In sending the Bulletin to others theBoard feels that a subscription should be required. It hasaccordingly fixed a subscription price of $2 per annum. Singlecopies will be sold at 20 cents. Foreign postage should be addedwhen it will be required. Remittances should be made to theFederal Reserve Board. Member banks desiring to have theBulletin supplied to their officers and directors may have it sentto not less than ten names at a subscription price of $1 per annum.

No complete sets of the Bulletin for 1915 are available.Bound copies of the Bulletin for 1916 may be had at $5 per copy.


SECOND EDITION OF THE INDEX DIGEST.

The Federal Reserve Board has had prepared, primarily forits own use, a second edition of the Index Digest of the FederalReserve Act, by Hon. Charles S. Hamiin, member of the Fed-era! Reserve Board, the first edition of which was publishedin 1915. While the edition is primarily for the use of the Board,enough copies will be printed to supply the demand of banksand others who may desire to purchase them. Those who de-sire copies should at once remit $1 (bound in paper) or $1,25(bound in cloth) to the Federal Reserve Bank of the district inwhich the subscriber is resident. Copies of the edition, whenpublished, will be transmitted to the Federal Reserve Bankfor distribution.

i n


TABLE OF CONTENTS.

Page.

.Review of the month 917War-savings certificates 925Loans to directors of banks under section 22 of act 929Income from Liberty bonds exempt from taxation 930Standardizing commercial paper 930Use of coin-counting machines 930Statement of Secretary of the Treasury regarding nonconiiscation of bank deposits 931Use of gold coins as holiday gifts discouraged , 931Success of the second Liberty Loan 932State banks and trust companies admitted to the system during month 933Letters of State banking department of Oregon regarding State bank membership 934By-laws of branch banks 934Credit needs of farmers. 937Instructions for handling coupons from United States bonds 938Bank failures during past 3 years compared with preceding 33 years 939Commercial failures reported 940Federal Reserve notes and national-bank notes issued and redeemed 941Banks authorized to accept up to 100 per cent of capital and surplus 941Fiduciary powers granted to national banks 941New national-bank charters issued 942Principal changes in the condition of leading European banks of issue since outbreak of the war 942

Charts showing 944,945Gold-settlement fund transactions 947Operations of the Federal Reserve clearing and collection system 948Informal rulings of the Federal Reserve Board 949Law department 952Business conditions throughout the Federal Reserve districts 958Discount operations of the Federal Reserve Banks 976Acceptances 979Resources and liabilities of the Federal Reserve Banks 983Federal Reserve note account of Federal Reserve Banks and agents 985Earnings on investment of Federal Reserve Banks 987Gold imports and exports 988Discount rates in effect 988Index to volume 3 of Bulletin 989

IV


FEDERAL RESERVE BULLETINVOL. 3 DECEMBER 1, 1917. No. 12

REVIEW OF THE MONTH.

The second Lib-erty Loan.

On October 1? 1917, the Secretary of theTreasury invited subscriptionsat par and accrued interest,from the people of the United

States, for $3,000,000,000 of United States ofAmerica 10-25 year 4 per cent convertiblegold bonds, of an issue authorized by act ofCongress approved September 24, 1917, theright being reserved to allot additional bondsup to one-half the amount of any oversub-scription. Final returns received from thetwelve Federal Reserve banks, and made publicon November 9, show that the total subscrip-tions were $4,617,532,300—an oversubscrip-tion of $1,617,532,300, or approximately 54per cent of the amount offered. This is agreater oversubscription than was received inthe case of the first Liberty Loan, when$2,000,000,000 of bonds were offered, and asubscription of more than $3,000,000,000 wasreceived. It is estimated by the Treasury De-partment that the second Liberty Loan wassubscribed for by approximately 9,400,000individuals, and in this number 9,306,000, or99 per cent, subscribed in amounts rang-ing from $50 to $50,000, the aggregate ofsuch subscriptions being $2,436,469,350. jThe fact that so large a number sub-1scribed for bonds is significant of the wide- |spread interest of the people in the purposesof the war, and of their determined support ofthe Government in all measures required forits vigorous prosecution. In conformity with jthe original announcement, the Treasury ac- |cepted 50 per cent of the oversubscriptions, jmaking the total issue of the second Liberty!

Loan $3,808,766,150, subscriptions by FederalReserve districts being as follows:

; Total subscrip-tions received.

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco

8470,950,0501,550,453,450

380,350,25048(5,100,800201,212,50090,695,750

585,853.350184,280;750140.932,(550150; 125,75077,899,850

292,671,150

Total ! 4,617,532,300

Quota.

$300,000,000900,000,000250,000,000300,000,000120,000,00080,000,000

420,000,000120,000,000105,000,000120,000,00075,000,000210,000,000

Per centof over-

i subscrip-' tion.

597252626813395434254

39

3,000,000,000 I 54

Every Federal Reserve district, as thusshown, exceeded its quotum of the$3,000,000,000 of bonds offered. The fullamount of the subscription was not acceptedon this occasion just as on that of the firstloan. In speaking of the amount taken theSecretary of the Treasury says: "Havingannounced that only one-half of the over-subscription would be accepted, the Gov-ernment must, of course, faithfully observethat basis. Whenever loans are offered tothe public, the banks and the public ad-just themselves both consciously and un-consciously to the basis of the offering, andit would be extremely unwise to alter it afterthe subscriptions have been received." TheSecretary adds that the impression which hasprevailed in some quarters "that anotheroffering of Government bonds will be made inthe month of January, 1918/' is without foun-dation, as, "in view of the large oversubscrip-tion of the second Liberty Loan" *this will not be necessary."

917

* *


918 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917.

A definite plan with respect to the new war-savings certificates, whose issue

War-savings J *.-t"f tes w a s announcec*- some time ago,

has now been worked out andplaced before the country in a circular issuedby the Treasury Department, under date ofNovember 15. The sum of such war-savingscertificates outstanding is not at any one timeto exceed in the aggregate $2,000,000,000 (ma-turity value). The amount of war-savingscertificates sold to any one person at any onetime is not to exceed $100 (maturity value),and it is not to be lawful for any one person atany one time to hold war-savings certificatesto an aggregate amount exceeding $1,000.

The certificates will be obligations of theUnited States only when one or more stampshave been affixed thereto. Each war-sav-ings certificate will have spaces for 20 war-savings certificate stamps, and each stampwill have a maturity value of $5 on January 1.1923, which will accordingly give each suchcertificate, when bearing its full complementof such stamps, a maturity value of $100 onthat date. The details of the new issue arefurnished on page 925 of this Bulletin.

Provision has been definitely made for a plandesigned to relieve any possiblecongestion or disturbance ofthe money market such as

might be caused by the payment of taxes duebetween June 15 and June 25, estimated toamount to over $2,000,000,000. Under theauthority of the war loan act, approved Sep-tember 24, 1917, the Secretary of the Treasuryannounced that he would receive subscrip-tions at par and accrued interest for a limitedamount of Treasury certificates of indebted-ness, payable June 25, 1918, with interestat the rate of 4 per cent per annum, fromNovember 30, 1917. Federal Reserve Bankswere instructed to receive subscriptions, andcertificates were issued in denominations of$500, $1,000, $5,000, $10,000, and $100,000.The certificates have been sold, paymentto be made upon allotment, but not beforeNovember 30. Any Treasury certificates of

indebtedness now outstanding were acceptedin payment at par with adjustment of accruedinterest. Allotments were made in the orderthat subscriptions were received. As author-ized by the war revenue act of October 3, 1917,collectors of internal revenue will receive cer-tificates of this issue at par and accrued in-terest, under rules and regulations to be pre-scribed by the Secretary of the Treasury, inpayment of income and excess profits taxeswhen payable at or before the maturity of thecertificates, but these certificates will not beaccepted in payment of or on account of bondsubscriptions. The amount of the first issue ofcertificates so sold is $691,622,000.

The certificates will be exempt both as toprincipal and interest from all taxation now orhereafter imposed by the United States, anyState, or any of the possessions of the UnitedStates, or by any local taxing authority, ex-cept estate or inheritance taxes, graduatedadditional income taxes C' surtaxes''), andexcess profits and war profits taxes, now orhereafter imposed by the United States uponthe income or profits of individuals, partner-ships, associations, or corporations. The in-terest on an amount of bonds and certificatesauthorized in the act of September 24, 1917,the principal of which does not exceed in theaggregate $5,000 owned by any individual,partnership, association, or corporation, is alsoto be exempt from the graduated incometaxes. After allotment and upon payment.Federal Reserve Banks will issue interimreceipts pending delivery of definitive certifi-cates. Qualified depositaries are permittedto make payment by credit for certificatesallotted to them for themselves or their cus-tomers up to amount for which each shall havequalified in excess of existing deposits whenso notified by Federal Reserve Banks.

During the four weeks between October 26and November 23 discount-

Condition of operations of the Federal Re-Federal Reserve T> i • •* • - j j . iBanks serve 13a-nks, meiiuy incidental

to the financing of the secondLiberty Loan, continued on a large scale.


DECEMBER 1,1917. FEDERAL BESEBVE BULLETIN. 919

Following the payment of the 18 per centinstallment (Nov. 15) temporary liquidation ofdiscounted bills set in, especially at the NewYork bank, whose holdings of collateral notessecured by Liberty bonds and certificates ofindebtedness show a decline between Novem-ber 9 and 16 of over 92 millions. Renewedpressure was brought to bear on the FederalReserve Banks during the following week,as the result, of the large Government opera-tions, mainly in New York City. Accordingly,the New York Federal Reserve Banks holdingsof collateral notes secured by war bonds andcertificates show an increase for the weekending November 23 from $151,531,000 to$299,234,000, while the total holdings by allthe banks of this class of paper went up duringthe week from $208,229,000 to $365,492,000.Holdings of other classes of discounts showeither much smaller increases, or else, as mthe case of collateral notes secured by com-mercial paper, substantial decreases.

Acceptances on hand show an increase foithe period from $177,590,000 to $209,905,000-,all the banks, except those of New York (apart of whose holdings were purchased byother Federal Reserve Banks) and Chicago,showing larger holdings on November 23 thanon the last Friday of October. Aggregate billholdings of ail the banks increased during thefour weeks from $271,712,000 to $449,474^000.Government financing accounts for most of thediscounting done by the Federal Reserve Banksduring November.

Investments of the Federal Reserve Banksin United States bonds show practically nochange for the period, while the holdings ofUnited States short-term securities, composedof 1-year Treasury notes and certificates ofindebtedness, increased from $55,876,000 to457,850,000.

In the following table are shown the changesbetween October 26 and November 23 in thetotals of discounted and purchased bills heldby each of the Federal Eeserve Banks, alsochanges in the aggregates of other classes ofearning assets:

[000 omitted.]

Federal 'Reserve Bank.

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicago..St. Louis.MinneapolisKansas City"DallasSan Francisco

Total bills.

Total United States securities..Total municipal warrants

Oct. 26.

$34,919302,18823,59927,69917,05114,30159,88824,14711,01825,00117,29717,576

Nov. 23.

S67,808401,45148.51861,23129,56017,380

103,75425,12019,30637,65819,19334,928

Netincrease.

99,26324,91933,53212,5093,07943,866

9738,28812,6571,89617,352

Total investments held

While the increase of operations has reducedthe reserve percentage from 71.7 to 64.7, it isinteresting to note that the gold holdings ofFederal Reserve Banks increased from $1,503,-436,000 to $1,604,704,000 during the sameperiod.

The subjoined table shows the manner inT> . which the first installment ofPayments on

second liberty the second Liberty Loan was* j O a n « paid for at the several Federalliesorve Banks:

Payments as of Nov. 15 on second Liberty Loan.

[000 omitted.]

Federal Reserve Allot-Bank. ment.

Boston | 8408,000New York il, 151,000Philadelphia j 295,000Cleveland j 410,000Richmond ! 183.000Atlanta | 83; 000Chicago | 520,000St.Lrinis I 150,000Minneapolis j 132,000Kansas City \ .136,000Dallas.....* j 74,000San Francisco i 261,000

Cash. Credit.

Total. .!?», 809,000

$74,000118,00057.000108; 00054,00021,000167,000&), 0005-4.000

«s;ooo9,000

Si), 000

Certifi-cates.

SI 79,000 ;701,000 ;ii4,ooo ino.ooo ;

SO'.OOO -:

4 2 , 0 0 0 iUii.000 •

6o,ooo:20.000 :2<00022,000 ;50,000 :

$40,000161,00032,00079.00011', 0003,000

()", 00023,00030', 00010,000(), 00028.000

841,000 1,477,000 ; 4<>9,000

Total.

3293,000975,000203,000308,000318,00006,000

326.000122', 00084,00090,00037,000

167,000

2,787,000

I It is interesting to note from the abovei statement the large extent to which the loanj was paid in full by subscribers, being 73 per centi of the total accepted. It will further be notedI that of this amount about 53 per cent was paidI by credit. From this showing it is apparentI that a very large number of subscribing banksI qualified as depositaries, and it is largely due



to the satisfactory arrangements made by theTreasury with qualifying banks that a pay-ment of almost $3,000,000,000 could be madewithout creating any congestion or disturbancein the money market. During the monthcertificates of indebtedness fell due and wereredeemed by Federal Reserve Banks to theamount of $935,197,000. There remained tobe paid on December 15 $1,385,296,000 of cer-tificates maturing on that date, a small part ofwhich, however, was received in payment onLiberty Loan account. In order to avoid thenecessity of withdrawing so large an amount onthat date the Secretary of the Treasury hascalled the series of $300,000,000 Treasury cer-tificates of indebtedness dated September 17,1917, and maturing December 15, 1917, for re-demption on December 6, 1917, at par andaccrued interest pursuant to the provision forsuch redemption contained in the certificates.On December 6,1917, interest on all certificatesof said series will cease to accrue.

The series of $400,000,000 Treasury certifi-cates of indebtedness dated September 26,1917,and maturing December 15,1917, has been calledfor redemption on December 11, 1917, at parand accrued interest pursuant to the provisionfor such redemption contained in the certificates.On December 11,1917, interest on all certificatesof said series will cease to accrue.

The series of Treasury certificates of in-debtedness dated October 24, 1917, and matur-ing December 15, 1917, will not be redeemedbefore maturity but will be paid on December15, 1917.

Between October 20 and November 23 the59 New York clearing-house

tlonofthl\anks. b a n k s reported increases of$620,164,000 in average weekly

loans and investments as against decreases of$226,987,000 in average net demand depositsand $44,725,000 in average legal reserves.Their average Government deposits show anincrease of $679,113,000, from $191,989,000 to$871,102,000. These changes were causedlargely by the heavy demands on the New Yorkbanks by both their local customers and out-of- ;town bank correspondents in connection with jGovernment financing, including payments on !

account of certificates of indebtedness and the18 per cent installment of the second LibertyLoan. The banks' increases in loans and in-vestments include both direct investments inGovernment securities and amounts advancedto their customers in connection with sub-scriptions to the second Liberty Loan.

The reserve percentage for all clearing-housebanks, representing the ratio of net demanddeposits to aggregate cash in vault plus amountsdue from legal depositaries, including the Fed-eral Reserve Bank, shows accordingly a declinefrom 19.1 per cent for the week ending October20 to 18.1 for the week ending November 3.For the subsequent three weeks higher averagepercentages obtain, viz, 18.7, 18.9, and 20.7 percent, indicating a lessening strain upon theliquid resources of the banks.

A similar development is shown for thosebanks which are members of the FederalReserve system, and whose reserve percentagewas figured on the basis of balances due fromthe Federal Reserve Bank only (i. e., excludingthe amount of vault cash). From 16.1 per centfor the week ending October 20 the ratio thusfigured shows a decline to 15 per cent on No-vember 3 and an improvement to 16 per centfor the week ending November 23. Averageexcess reserves of all clearing-house banks de-clined from $94,943,000 for the week endingOctober 20 to $62,405,000 for the week endingNovember 3. For the following week theaverage shows a gain of over 22 millions, whileaverage excess reserves for the week endingNovember 23 were in excess of 93 millions.

For the trust companies in Greater NewYork reserve percentages, as figured by theState Banking Department, show a somewhatsimilar development, the average of 21 per centfor the week ending October 20 declining to

! 20.1 per cent for the week ending November 3. %| An improvement to 21.2 per cent for the suc-i ceeding week is shown, wiiich is followed, how-\ ever, by a decline to 20.3 per cent for the weekending November 17. For the week endingNovember 23 this percentage is shown as 21.8,indicating a reserve position stronger than forthe initial week.


DECEMBER 1, 1917. FEDERAL RESEEVE BULLETIN.. 921

Average excess reserves, including vault cash,of the II clearing-house banks in Boston like-wise indicate a successive decrease from$18,527,000 to $16,853,000 for the two weeksfollowing October 20. For the subsequenttwo weeks these averages rise, the average forthe week ending November 17, $20,318,000,being $1,791,000 larger than for the initialweek. Excess reserves for the week endingNovember 24 averaged $10,086,000, the lowestlevel for the period under review.

For those Philadelphia clearing-house bankswhich are also members of the Federal Keservesystem excess reserves proper (i. e.? disregard-ing amounts of vault cash) show much smallerchanges, the amounts varying between$5,432,000 for the week ending October 20 and$7,453,000 for the week ending November 10.For the latter and subsequent weeks the listof member banks includes the Girard TrustCo., with considerable average excess reserves.Excess reserves of these banks for the weekending November 17 show a decline to$6,534,000, followed by a considerable increaseto $9,583,000 for the week ending November 24.

During the past month the Board has desig-nated as reserve cities Buffalo, N. Y., Toledo,Ohio, Memphis, Tenn., Peoria, 111., GrandRapids, Mich., and Oakland, Cal., thus makingbanks in those places subject to the reserverequirement of 10 per cent against demanddeposits and 3 per cent against time deposits.

In view of the extensive fiscal operationsReports by mem- which will be undertaken byber banks. the Government during theperiod of the war, it has been thought by theBoard desirable that those in charge of theseoperations, the member banks themselves, andthe public should be able to have a clear view atall times of the financial situation. To this endthe Board has decided that the member banksin about 100 of the most important cities shouldbe requested to transmit once a week to theirrespective Federal Reserve Banks a condensedstatement showing the principal items, suchas deposits, loans, investments, cash, Govern-ment obligations owned, and loans on suchsecurities. The preparation of these state-ments will involve but little labor and when

26416—17 2

tabulated they will reflect quite accurately thechanging conditions in money and credit.The information given will thus be valuableto the business community and to the banks.It is intended that the figures be reported to theFederal Reserve Banks at the close of businesson Friday of each week, beginning December 7.and that a summary be made by each FederalReserve Bank and telegraphed to the FederalReserve Board not later than the followingThursday, for publication when the Board'sweekly statement is issued on Saturday.

As the leading State banks and trust com-panies are now members of the system, it willbe possible for the first time regularly to publishstatistics which will include figures from boththe national banks and State banking institu-tions. The necessary forms have been trans-mitted, and each of the Federal Reserve Bankshas been requested to instruct the memberbanks of those cities which are situated in itsdistrict. Additional cities in each district willbe from time to time added upon request of theFederal Reserve Bank of each district.

In this connection it should be noted thata gratifying feature of the past month's opera-tions has been the continued movement ofstrong State institutions into the Federal Re-serve system. In all, 59 institutions were ad-mitted during the month, their total capital andsurplus being $134,511,731, and their combinedassets $1,190,986,947. State institutions in allparts of the country are manifesting a patrioticand public spirited disposition to cooperate inthe strengthening of the banking resources ofthe Nation.

At the request of the Federal Reserve Board,governors of Federal ReserveBanks on November 8 metwith it in Washington and dis-

cussed matters of general interest regardingthe administration of the system.

On November 19 the quarterly meeting ofthe Federal Advisory Councilwas held in Washington. Themeeting proved to be unusually

important on account of the significance ofthe questions presented for consideration,

Meeting ofGovernors.


922 FEDERAL RESERVE BULLETIN. DECEMBER 1.1917.

prominent among which was that of ratesof discount, and the question whether theFederal Reserve system could with proprietybe employed in any way to relieve the neces-sities of the industrial enterprises of the coun-try. On both points the view of the AdvisoryCouncil was the same as that which has guidedthe Board, this view being that the systemmust use every effort to maintain its liquidcharacter and that commercial paper regardedas eligible for discount must be of a kind calcu-lated to provide its own means of liquidation.Admission of long-term obligations, or obliga-tions short-term in form only, but requiringcontinual renewal and incapable of settlementwithin a reasonable time by the use of fundsgrowing out of« business transactions directlyfinanced by them, was regarded as unques-tionably opening an avenue of danger to thesystem, both because of the unliquid characterof the paper, and because of the very largequantity of such paper almost inevitably tobe expected for discount under present condi-tions, should paper of this character be heldadmissible for discount at Federal ReserveBanks.

The attitude of the Council with respect torates of discount was distinctly that they couldto advantage be increased, such advance beingcalled for by the growing pressure upon bankresources, and the necessity of discouragingunnecessary applications for discount. Dis-cussions during the sessions of the Councilcovered other questions of general importanceaffecting the system which are now pending,and resulted in recommendations to the Boardwhich have been taken under advisement.

As the requirements of war financing absorba larger share of the capitalavailable in the financialmarket, there is a disposition

on the part of borrowers to put their paper intoa form available for discount at Federal Re-serve Banks in order that it may gain a widerfield of sale, and may be enabled to take ad-vantage of the lowest possible rate offered atany time. It is highly desirable that the paper

of the country should in every possible way bebrought into conformity with the requirementsof the Federal Reserve Act and of the regula-tions of the Board, and that there be at alltimes as large a proportion of banking dis-counts and investments in the form of strictlyliquid paper eligible for presentation to FederalReserve Banks as is possible. The campaignof education which the American TradeAcceptance Council is now carrying on is con-tributing strongly to this desired end. It is,however, undesirable that in this process ofreshaping the commercial paper of the countrythere should be developed any kind of papertechnically eligible for discount at Federal Re-serve Banks, but in fact not conforming to thespirit and purpose of the Act and the regula-tions under it. During the past month theattention of the Board has been directed to aplan for financing corporations for approxi-mately two years by means of a series of 90-daynotes, issued under an agreement with the bor-rower providing for seven renewals. As state-ments have appeared in the press that notes ofthis kind are eligible for rediscount by FederalReserve Banks, the Board thought it best tostate definitely that renewal agreements of thisnature destroy the self-liquidating character ofthe notes and render them undesirable as invest-ments for Federal Reserve Banks. This opin-ion is in harmony with the Board's ruling madeabout a year ago in the case of certain accept-ance credits, in connection with which theBoard laid stress upon the point that the dis-count market, which is intended to deal withshort term and commercial borrowings, shouldnot be made to exercise functions properlypertaining to the investment market.

Changes in rates of discount at Federal Re-serve Banks have been underadvisement by the banks andby the Federal Reserve Board

for some time past, and after careful considera-tion on November 26 the Federal ReserveBoard suggested to Federal Reserve Banksthat the time had come to increase theirschedules in the near future, due consideration

Rates ofcount.


DECEMBER 1,1917. FEDERAL RESERVE BULLETIN. 923

in fixing the proper moment being given to localconditions. This suggestion has been generallyadopted by the banks, the schedule of ratesbeing approved by the Board on November28, and resulting in the establishment of thefollowing rates:

Discount rales approved by the Federal Reserve Board.

Federal ReserveBank.

BostonNew YorkPhiladelphia...ClevelandRichmondAtlanta.ChicagoSt. LouisMinneapolisKansas City...DallasSan Francisco..

Federal ReserveBank.

BostonNew YorkPhiladelphia...ClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas City...DallasSan Francisco..

Commercial paper maturing—

"Within 15days, in-cludingmember

banks' col-lateralnotes.

I

16 to 60 61 to 90days.

Paper secured by U. S.certi fi cates of indebt-edness or L i b e r t yloan bonds, matur-ing—

Within 15days, in-cludingmember

banks' col-lateralnotes.

16 to 90

Agricul-tural andlive-stockpaper over

90 days.

Trade acceptancesmaturing within—

Ito60days, in-clusive.

43144443*4"443i4

61 to 90days, in-clusive.

43144A4444444

NOTE 1.—Rate for acceptances purchased in open market 2\ to 4 percent, except for San Francisco, whose rate ranges from 2\ to 4£ per cent.

NOTE 2.—Kates for commodity paper have been merged with thosefor commercial paper of corresponding maturities.

These advances in rates are in harmony withthe generally upward tendency of market ratesof interest in the country at large, and are arecognition of the changed conditions ofdemand for and supply of loan capital existingthroughout the country as a whole. I t will benoted that the so-called commodity rate hasfor the time being been eliminated, the only

preferential rate retained being in favor ofpaper secured by Government obligations.The former classification under which prefer-ential rates upon acceptances and short termpaper were established remains in effect. Theslight advances in rates now introduced arelikely to have their most important effect byway of suggestion or caution to member bankswhich might otherwise apply too freely fordiscount during a period which should as faras possible be devoted to timely reductions ofloans in harmony with the policy of acceleratingthe absorption of Government obligations byrestriction and savings.

During the past month the organization, ofthe proposed branches of re-

! s e r y e b ^ n k s a t Pittsburgh, Cin-cinnati, and elsewhere has been

given detailed study," and it has been deter-mined to introduce, where conditions appearto require such action, a new type of branchorganization. Elsewhere in this issue willbe found a draft of branch by-laws asamended to meet the requirements of the newplan. It will be noted that the principal dis-tinction between this plan and the old branchorganization is found in the fact that under thenew plan no distinct area or territory is to beassigned to a branch. Consequently no theo-retical capital will be assigned to the branch,nor will the member banks in any specific terri-tory be required to deal with the branch. Thebranch will be established upon the theorythat it is an office of the Federal ReserveBank of the district, opened for the conven-ience of such member banks as may desireto use it. The routine operations of thebranch will be conducted by the managerand the board of directors, subject to thesupervision of the directors of the parent Fed-eral Reserve Bank and of the Federal ReserveBoard. A collection zone will be allotted toeach branch, and checks drawn upon bankslocated in this zone may be sent to the branchby any member bank in order to save time intransit and to reduce float. The resultingcredit will be reported by the branch to theFederal Reserve Bank.


924 FEDERAL BSSEEvE BULLETIN, D3CKHBEK. 1. 1917.

The member banks will continue to send theirofferings for discount to the Federal KeserveBank, except that any bank located in the col-lection zone allotted to a branch and havingsignified its desire to deal with the branch mayhave the option of offering its paper for dis-count to the branch. Paper which, in theopinion of the directors or the discount com-mittee of the directors of the branch, is eligible,may be passed immediately to the credit of themember bank on the books of the branch, sub-ject to approval by the Federal Reserve Bank.

Each member bank located in the collectionzone of a branch bank will be expected to advisethe FederalReserveBank as to whether it wishesto treat the branch bank as its Federal Reservecorrespondent. If a bank so elects, it willtransact all its Federal Reserve business withthe branch, except that it may send checksdirect to the Federal Reserve Bank or to anyother branch in its district for credit of itsaccount with its own branch. In the matterof exchange transfers, currency shipments andcash deposits and withdrawals, its dealings willbe with its own branch and not with the Fed-eral Reserve Bank.

Each Federal Reserve branch will forward tothe Federal Reserve Bank of its district a dailytranscript of all business transacted, showingin detail credits given for loans, reserve creditsgiven on account of collected items, and checkspaid for member banks. The Federal ReserveBank will then make proper entries on itsbooks in order to maintain a record of the re-serves of all member banks in its district.

During the month of November the work ofthe Board in connection with the control of the

country's gold supply, has con-tinued. Certain branches offoreign trade have found it

necessary to ask for the release of considerablegold, and remedial action has accordingly beentaken, notably with respect to Mexico and Can-ada. A special conference with representativesof the Canadian bankers resulted in the Board'sundertaking to release $25,000,000 of gold priorto July 1, 1918, in amounts not to exceed

^ j o j e m e n t o f

$10,000,000 in any one month. This permis-sion has not been largely availed of, becausethe action taken of itself went far toward stabil-izing exchange. Negotiations have been inprogress with various foreign countries look-ing to the establishment of a plan which wouldresult in the furnishing of exchange eitherthrough deposits made with the Federal Re-serve Bank in favor of such country, or throughsome other means of relief. A notable exampleof the purpose of these negotiations is affordedby arrangements made by the Secretary of theTreasury to supply to the importers of theUnited States rupee exchange for the purposeof satisfying the legitimate trade requirementsof the country. The embargo on gold exportshas made it difficult for importers of theUnited States to find remittances for theirpurchases in India. The Secretary of theTreasury has placed in the hands of the FederalReserve Board the administration and appor-tionment of these rupee drafts and the Boardhas taken the necessary steps so that merchantsrequiring such remittances can make their ap-plications through the Federal Reserve Bankof their district and receive allotments to covertheir requirements. The amount of rupeesnow available is estimated as sufficient to coverimmediate requirements of trade, and it ishoped that further arrangements can be madeto take care of the future requirements as theyarise from time to time. The question ofgold export control has been given a new as-pect by reason of the development of the largerproblem of control of foreign trade in gen-eral with a view to discouraging the importa-tion of unnecessary articles. Regulations re-lating to the licensing of foreign exchangetransactions have also been worked out, and itis expected will be put into operation at anearly date.

For the five weeks ending November 16 thenet outward movement of goldtotaled $4,101,000, comparedwith $26,367,000 shown for the

immediately preceding five-week period. Goldimports totaling $4,635,000 are credited largely


DECEMHEH 1,11)17. FEDERAL EESEEVE BULLETIN. 925

to Canada, Mexico, Colombia, and other Amer- \ican countries, while gold exports, totaling;$8,736,000 were consigned chiefly to Mexico, |Peru, and British India. Since January 1 of jthe present year the country's stock of goldincreased through net imports by $187,332,000,while the gain since August 1, 1914, is$1,056,094,000, as may be seen from thefollowing exhibit:

(ooo's omitted.)

Ayg.ltoDec.31,1914 ! $23,253Jan. 1 to Dee. 31,1915 ; 451,955Jan. 2 to Dec. 31,1916 | 685,745Jan. 1 to Nov. 16,1917 : 549,715

Total | 1,710,668

$101,97231,426

155,793362,383

654,574

Excess ofimports

overexports.

1 581,719420,529529,952187,332

1,056,094

1 Excess of exports over imports.

Erratum.

On pages 844-845 of the October Bulletintwo diagrams appear which show the move-ment of the price of silver for the period 1882to September, 1917. The upper curve in eitherdiagram is intended to illustrate changes in theprice of an ounce of silver, and the lower curvechanges in the price of 371J grains of silver,the pure silver contents of an American dollar.In the diagram the upper curve was erroneouslymarked "(1)" instead of "(2)," while thelower curve was marked '' (2)" instead of '' (1)."Attention is called to this error, so proper cor-rections may be made in the reader's cop}7.

War Savings Certificates.

On page 730 of the October Bulletin refer-ence was made to the committee on war savingscertificates, of which Mr. Frank A. Vanderlip,president of the National City Bank of NewYork, is chairman, appointed by the Secretaryof the Treasury under provisions of the act ofSeptember 24, 1917.

An enormous amount of detail work has beenrequired and an immense amount of printingand engraving done;1 but the expectation as this

issue goes to press is that the campaign for thesale of the certificates will begin on December 1or shortly thereafter.

The act of Congress of September 24, 1917,"To authorize an additional issue of bonds tomeet expenditures for the national security anddefense,'7 etc., provided, among other things,for the issuance by the Secretary of the Treas-ury of two billions of war savings certificates.The act provided that these certificates wereto be issued in small denominations and the Sec-retary of the Treasury was authorized to havestamps printed to evidence payments therefor.The object of Congress was twofold: First, tosecure funds to meet the needs of the Govern-ment; and, second, to make it possible for everyman, woman, and child in the country to lendmoney to the Government at rates of interestequal to those carried by Government bonds,yet in such a way as to meet public con-venience.

A committee, appointed by the Secretary ofthe Treasury, has been working out the detailsand the machinery necessary to put this lawinto effect, and the general plan is as follows:

Provision is made for the issuance of the"war savings certificates.'7 The certificatetakes the form of an engraved sheet bearingupon its face the name and address of theinvestor or owner. It is given, without cost,to anyone who is ready to make the first in-vestment for a large '''war savings certificate

'. stamp," which sells during this December and; January at $4.12, and thereafter through theI months of 1918 at I cent more each month.: Each certificate is designed to carry 20 of theseI large stamps, and since the value of each stamp: increases with each successive month, the cer-! tificate, which represents the combined valuei of the certificate stamps affixed to it, increasesi in value each month in equal proportion. In• other words, at the end of five years from the; date of issue, to wit, January 1, 1923, the Gov-; eminent will redeem and pay for each stampi on the certificate $5, and will redeem and pay; for a filled certificate containing 20 stamps: $100. This payment by the Government rep-


926 FEDERAL BESEBVE BULLETIN DECEMBER 1,1917.

resents the original cost of the stamps, togetherwith interest at the rate of 4 per cent each year,compounded quarterly.

It is expected to make arrangements with jbanks to act as custodians of certificates forinvestors; and as a further protection any in-vestor may, if he chooses, register his certifi-cates with the stamps thereto affixed, at any jmoney-order post office. !

To take care of the case of the investor who, ,for any reason or at any time, must ask for the Irefund of his money from the Government, jprovision is made so that on suitable notice hewill receive what he paid plus 1 cent per monththereafter for each stamp on the certificate.This is slightly less than the rate of incrementhe would receive if the stamps were held fortheir full term. This provision for redemp-tion is made necessary by the fact that cer-tificates can not be sold and are not trans-ferable nor payable to bearer. At the sametime this privilege is not given in order to en-courage redemption, for the whole purpose ofthe Government in borrowing these funds isto make a five-year loan, which purpose isnullified if the return of the money is demandedby the investor.

As all thoughtful people must appreciate, theGovernment is appealing to all its people foraid of one kind or another. From those whocan fight it asks for military service; from thosewho can spare from their cash means (i. e.,earnings or savings, or both) it demands finan-cial assistance, and this it takes partly in theform of taxes and partly in the form of borrow-ing. The difference between this method ofGovernment borrowing and that provided forin the sale of Liberty Loan bonds lies in thefact that in the latter case larger units aredealt with and the interest is paid back to thelender every six months, while in the case of thewar savings certificates, which bear the samerate of interest as the last Liberty Loan bonds,a much larger number of units are dealt withand the interest, because it is necessarily small,is added to the principal and the accumulatedsum paid at maturity, or at the end of five

years. Thus|eacM$4.12 paid in grows in valuefrom dayftofdayjuntii it [becomes worth $5 atthe end of five years.

To facilitate the accumulation by those ofsmall means of the price of the certificate stampsold at $4.12 to $4.23, provision is made for thesale of 25-cent stamps which may be accumu-lated upon a card and turned in as payment forcertificate stamps. This should appeal espe-cially to school children; hence the committeehas prepared an attractive card, known as a"thrift card," upon which the 25-cent thriftstamps will be affixed. Sixteen of thesethrift stamps, with the necessary small changeto bring the total up to the price of thecertificate stamp, can be turned in to pay forsuch stamps.

Although the first issue of certificates andstamps are all to be printed as of the series of1918, provision has been made for anticipatingtheir sale so as to enable holiday makers andChristmas givers to avail themselves of theprivilege of helping the Government in its needand at the same time make worthy gifts totheir friends and little ones. With this objectin view, it is intended to arrange for the issu-ance and sale of the 1918 certificates and stampsearly in the month of December.

Every post office in the land will have themon sale; all banks and many stores and otherreputable agencies will also be prepared tosell them. Many employers of labor will offertheir employees facilities for purchasing thesewar-savings certificates.

Finally, the object of the loan in this formis to give every man, woman, and child inthe United States the opportunity of doing hisor her bit to help win the war and aid in thegreat task of bearing the torch of liberty toevery land and every home. It is believedthat the campaign of education about to belaunched will serve the country in a perma-nent and lasting way in developing habits ofthrift in all our people.

The Treasury circular relating to war-savings certificates is as follows:


DECEMBER 1,1917. FEDERAL RESERVE BULLETIN.

[1917. Department Circular No. 94. (War-Savings CircularNo, I.) Loans and Currency.]

TSEASUIIY DEPARTMENT,OFFICE OF THE SECRETARY,

Washington, November, 15,1917.The Secretary of the Treasury offers for

sale to the people of the United States an issueof United" States war-savings certificates,series of 1918, authorized by act of Congress,approved September 24, 1917. Payments foror on account of such war-savings certificatesmust be evidenced by United States war-savings certificate stamps, series of 1918,which are to be affixed thereto. The sum ofsuch war-savings certificates outstanding shallnot at any one time exceed in the aggregate$2,000,000,000 (maturity value). The amountof war-savings certificates sold to any oneperson at any one time shall not exceed$100 (maturity value), and it shall not belawful for any one person at any one time tohold war-savings certificates to an aggregateamount exceeding $1,000 (maturity value).

War-savings certificates, war-savings certifi-cate stamps, and United States thrift stamps(described below) may be purchased, at theprices hereinafter mentioned, at post offices,and at numerous banks and other agenciesto be appointed by the Secretary of the Treas-ury. Advance sales will begin December3, 1917. All sales of war-savings certificatesand war-savings certificate stamps made inDecember. 1917, will be at the January,1913, price, and the date of issue of all certifi-cates so sold will be deemed January 2, 1918.

DESCRIPTION OF WAR-SAVINGS CERTIFICATES.

A United States war-savings certificate,series of 1918, will be an obligation of theUnited States when, and only when, one ormore United States war-savings certificatestamps, series of 1918, shall be affixed thereto.Each of such war-savings certificates will havespaces for 20 war-savings certificate stamps,series of 1918, and each of such stamps theretoaffixed will have a maturity value of $5 onJanuary 1, 1923, which will accordingly giveeach such certificate, when bearing its fullcomplement of such stamps, a maturity valueof $100 on said date. No war-savings certi-ficate will be issued unless at the same timeone or more war-savings certificate stampsshall be purchased and affixed thereto, but noadditional charge will be made for the war-savings certificate itself. The name of the

owner of each war-savings certificate must bewritten upon such, certificate at the time ofthe issue thereof.

War-savings certificate stamps, series of1918, will be issued in 1918 at the followingprices:January $4.12 ; July $4.18February 4.13 ! August 4.19March 4.14 ' ~ ' m

April 4.15May 4.16J

yJune 4,17

September 4.20October 4.21November 4.22December 4. 23

The average issue price above fixed for theyear 1918 with interest at 4 per cent per annumcompounded quarterly for the average periodto maturity will amount to $5 on Januarv1. 1923.

PAYMENT AT MATURITY.

Owners of war-savings certificates will beentitled to receive, on January 1, 1923, at theTreasury Department in Washington, or at amoney-order post office, upon surrender of suchcertificates and upon compliance with all otherprovisions thereof, $5 in respect of each war-savings certificate stamp, series of 1918, thenaffixed thereto; but no post office shall be re-quired to make any such payment until 10 daysafter receiving written demand therefor.

PAYMENT PRIOR TO MATURITY.

Any owner of a war-savings certificate, at hisoption, will be entitled to receive at any timeafter January 2, 1918, and prior to January 1,1923, at a money-order post office, upon sur-render of his certificate and upon compliancewith all other provisions thereof, in respect ofeach war-savings certificate stamp, series of1918, then affixed to such certificate, theamount indicated in the following table; butno post office shall make any such paymentuntil 10 days after receiving written demandtherefor:

Month.

February. -March -

May

JulyAugustSeptemberOctoberNovember.December

1918

$4.124.134.144.154.164.174.184.194.204.214.224.23

1919

84.244.254.264.274.284.294.304.314.324.334.344.35

1920

34.364.374.384.394.404.414.424.434.444.454.46-1.47

1921

U. 484.494.504.514.524.534.544.554.564.574.584.59

1922

U. 604.614.624.634.644.654.664.674.684.694.704.71

Jan. 1,1923, 85.



REGISTRATION.

War-savings certificates may be registeredwithout cost to the owners at any post officeof the first, second, or third class, subject tosuch regulations as the Postmaster General mayfrom time to time prescribe, and payment inrespect of an}" certificate so registered will bemade only at the post office where registered.Unless registered, the United States will not beliable if payment in respect of any certificateor certificates be made to a person not therightful owner thereof.

WAR-SAVINGS CERTIFICATES NOT TRANSFERABLE.

War-savings certificates are not transferableand will be payable only to the respectiveowners named thereon, except in the case ofthe death or disability of any such owner.

TAX EXEMPTION.

War-savings certificates shall be exempt,both as to principal and interest, from all taxa-tion now or hereafter imposed by the UnitedStates, any State, or any of the possessions ofthe United States, or by any local taxing au-thority, except (a) estate or inheritance taxes,and (6) graduated additional income taxes,commonly known as surtaxes, and excess prof-its and war-profits taxes, now or hereafterimposed by the United States, upon the incomeor profits of individuals, partnerships, associa-tions, or corporations. The interest on anamount of bonds and certificates authorizedby said act of September 24, 1917, the principaloi which does not exceed in the aggregate$5,000, owned by any individual, partnership,association, or corporation, shall be exemptfrom the taxes provided for in clause (b) above.

THRIFT CARDS AND THRIFT STAMPS.

Payments on account of war-savings certifi-cates may also be evidenced by United Statesthrift stamps, having a face value of 25 centseach but bearing no interest. United Statesthrift stamps, however, must not be affixed towar-savings certificates, but only to thriftcards, which may be obtained without cost.Thrift stamps as such are not directly redeema-ble in cash, but each thrift card will havespaces for 16 such thrift stamps, and a thriftcard, when bearing its full complement of suchstamps, may be exchanged at a post office orother authorized agency, on or before December31, 1918, for a war-savings certificate stamp,

series of 1918, and upon such exchange theowner of such thrift card must pay the differ-ence between $4 and the current issue price ofwar-savings certificate stamps during themonth in which such exchange is made, asshown by the following table:

January $4.12 ! July $4.18February 4.13 \ August 4.19March 4.14 j September 4. 20April 4.15 | October 4.21May 4.16 ! November 4. 22June 4.17 | December 4. 23

METHOD OF DISTRIBUTION AND SAL.;.

POST OFFICES AND FEDERAL RESERVE BANKS.

On or about December 3, 1917, war-savingscertificate stamps and United States thriftstamps (together with thrift cards and war-savings certificates, with suitable pocket en-velopes for such certificates) will be furnished(1) to post offices for sale to the public andto agents of the first class and (2) "to FederalReserve Banks, as fiscal agents of the UnitedStates, for distribution to agents of the secondclass and also for sale to banks which areagents of the first class; the classification ofsuch agents being hereinafter provided for.Post offices and Federal Reserve Banks willmaintain available supplies of stamps, certifi-cates, and cards in amounts sufficient to meetthe requirements for such distribution and sales.

OTHER AGENCIES.

Banks, bankers, and trust companies; rail-road and express companies; department andother retail stores; the duly authorized repre-sentatives of labor, fraternal, and other associ-ations; and other corporations, partnerships,and individuals; who patriotically offer theirservices without expense, either to the UnitedStates or to purchasers, will be among thosewhom the Secretary of the Treasury will in hisdiscretion appoint as agents to sell war-savingscertificate stamps and the United States thriftstamps and to issue war-savings certificatesand thrift cards.

Blank forms of application for appointmentas agent, with necessary information as toexecution and filing, may be obtained from anymoney-order post office, from agent banks,or from State or local representatives of theNational War-Savings Committee. Appoint-ments will be made only under authorizationof the Secretary of the Treasury.



No agent shall sell any United States thriftstamp at any price other than 25 cents foreach stamp, nor any war-savings certificatestamp at any price other than the current issueprice of such stamp during the month in whichsold, as hereinabove specified.

CLASSIFICATION OY AGENTS.

Two classes of agents will be appointed: IFirst, agents of the first class, who may neither ;obtain nor hold at any one time in excess of |$1,000 of war-savings certificate stamps (ma-turity value); second, agents of the secondclass, who may obtain at any time or times inexcess of $1,000 of such stamps (maturityvalue) for sale to the public.

AGENTS OF THE FIRST CLASS.

Agents of the first class may obtain, for saleto the public, from post offices, agent banks,or other authorized agents, war-savings certi-ficate stamps in any amount desired, not, how-ever, in excess of $1,000 (maturity value),together with an adequate supply of war-savings certificates, upon payment for suchstamps at the current issue price thereof duringthe month in which such stamps are thusobtained. Similarly, agents of the first classmay obtain, for sale to the public, UnitedStates thrift stamps, together with an adequatesupply of thrift cards, in any amount desiredupon payment for such stamp3 at 25 centseach.

AGENTS OP THE SECOND CLASS.

Agents of the second class will be required todeposit with the Secretary of the Ireasury,or with such agencies as he may designate,United States bonds of any Liberty Loan, orUnited States certificates of indebtedness, theaggregate par value of which shall be at leastequal to the aggregate amount of war-savingscertificate stamps, at the issue price thereofduring December, 1918, as specified above,plus the aggregate face value ox United Statesthrift stamps obtained by such agents, re-spectively. A further Treasury Departmentcircular will shortly be issued specifying theterms and conditions for the deposit of suchsecurities, or of such other securities, thedeposit of which may be permitted by suchcircular under the conditions to be thereinspecified, and covering other matters of detailparticularly concerning such agents of thesecond class.

26416—17 3

OTHER DETAILS.

War-savings certificates will not be receiv-able as security for deposits of public moneyand will not bear the circulation privilege.

The Secretary of the Treasury reserves theright at any time to revoke any or all ap-pointments of agents, to withdraw war-savingscertificates, war-savings certificate stamps,or United States thrift stamps from sale, torefuse to issue or to permit to be issued anywar-savings certificates or thrift cards, andto refuse to sell or to permit to be sold anywar-savings certificates or war-savings certifi-cate stamps or United States thrift stamps toany person, firm, corporation, or association.

The right is also reserved to make from timeto time any supplemental or amendatory regu-lations which shall not modify or impair theterms and conditions of war-savings certifi-cates issued or to be issued in pursuance ofsaid act of September 24, 1917.

Further details may be announced by theSecretary of the Treasury from time to time,information as to which will be promptly fur-nished to postmasters at money-order postoffices and to other agents.

Indorsement by Directors.

In a circular letter, dated July 24, it was sug-gested by the Board that in compliance withsection 22 a resolution of tho board of directorsof a member bank might be adopted, substan-tially as follows:

Resolved, That the president, cashier, or assistant cashierof this bank be, and he is hereby, authorized to discountnotes, drafts, or bills of exchange for , a director ofthis bank, on the same terms and conditions as other notes,drafts, bills of exchange, or other evidences of debt arediscounted for customers of the bank: Provided, The aggre-gate amount of such notes, drafts, and bills of exchange dis-counted for such director and remaining unpaid shall atno time exceed the sum of $ : Provided further, Thatin any case in which any note, draft, or bill of exchange isdiscounted under authority of this resolution a report shallbe made thereof at the next subsequent meeting of theexecutive and discount committee of the board and suchreport shall show the aggregate amount of liabilities ofsuch director to this bank.

In order to remove any doubt as to whethersuch a resolution would cover notes discountedby a third party bearing the indorsement ofdirectors or attorneys, it is suggested that wher-



ever this is necessary the foregoing resolutionbe modified to read as follows:

Resolved, That the president, cashier, or assistant cashierof thi3 bank be, and he is hereby, authorized to discountnotes, drafts, bills of exchange, or other evidences of debtexecuted or indorsed by , a director, or , theattorney, of this bank on the same terms and conditions asother notes, drafts, bills of exchange, or other evidences ofdebt are discounted: Provided, The aggregate amount ofsuch notes, drafts, and bills of exchange discounted forsuch director or attorney and remaining unpaid shall atno time exceed the sum of S : Provided further, Thatin any case in which any note, draft, or bill of exchange isdiscounted under authority of this resolution a report shallbe made thereof at the next subsequent meeting of theexecutive and discount committee of the board and suchreport shall show the aggregate amount of liabilities ofsuch director to this bank.

Income from Liberty Bonds Exempt from Tax*

The income from not to exceed $5,000 facevalue of Liberty bonds, Treasury certificates ofindebtedness, and war savings certificatesauthorized by the act of October 3, 1917, isexempt from all income and war excess profitstaxes. The following was sent out from theoffice of Commissioner of Internal Kevenue,Treasury Department, under date of Novem-ber 8:

To collectors of internal revenue:Attention is called to section 7 of the act of

Congress approved September 24, 1917, pro-viding for the issue of 4 per cent Libertybonds, Treasury certificates of indebtedness,and war savings certificates, which reads asfollows:

That none of the bonds authorized by section one, nor ofthe certificates authorized by section five, or by section six,of this act, shall bear the circulation privilege. All suchbonds and certificates shall be exempt, both as to principaland interest, from all taxation now or hereafter imposed bythe United States, any State, or any of the possessions ofthe United States, or by any local taxing authority, except(a) estate or inheritance taxes, and (b) graduated addi-tional income taxes, commonly known as surtaxes, andexcess profits'and war-profits taxes, now or hereafter im-posed by the United States, upon the income or profits of jindividuals, partnerships, associations, or corporations.The interest on an amount of such bonds and certificatesthe principal of which does not exceed in the aggregate$5,000, owned by any individual, partnership, associa-tion or corporation, shall be exempt from thetax^s pro-vided for in subdivision (b) of this section.

You are hereby informed that holders(whether individuals, partnerships, associa-tions or corporations) of Liberty bonds,Treasury certificates of indebtedness, and war

savings certificates authorized by the act ofSeptember 24, 1917, are entitled to exemptionfrom all income and war excess profits taxesupon the interest received on a principalamount not to exceed $5,000 face value of suchobligations. If, for example, the holder owns$5,000 Treasury certificates of indebtedness,$7,000 4 per cent Liberty bonds, and $2,000war savings certificates, he will be entitled toexemption from graduated additional incometaxes and war excess profits taxes upon onlythe interest received upon $5,000 of the afore-said obligations. It is immaterial whether the4 per cent Liberty bonds were issued to theliolder in exchange for Liberty bonds of thefirst series or Treasury certificates of indebted-ness, or whether issued upon a new subscrip-tion. The exemption is upon the income from$5,000 face value of the obligations issued byauthority of the aforesaid act of September 24,1917.

•Standardizing Commercial Paper.

Progress in standardizing commercial paperis shown by the following, which was sent outby the clearing-house banks of Portland, Oreg.:

To our customers:On November 14, 1917, the following reso-

lution was passed unanimously by the Port-land clearing-house banks:

"Resolved, That on and after December 1,1917, the banks of the Portland Clearing Housewill accept commercial paper only when it isdrawn with a fixed maturity date and for aperiod of six months or less.77

Referring to the above resolution, kindlynote that on and after December 1 next theundersigned will not accept notes drawn "Ondemand/' but will require all obligations to bedrawn with a fixed date of maturity not exceed-ing six months.

Canadian Bank of Commerce, FirstNational Bank, Ladd & Tilton Bank,Bank of California, Natl. Assn,United States National Bank, Hiber-nia Savings Bank. Northwestern Na-tional Bank.

Use of Coin-Counting Machines.

Following is a circular letter issued on No-vember 21 by the Federal Reserve Bank ofPhiladelphia:


DECEMBER 1,1917. FEDERAL KESEKVE BULLETIN". 931

To the hanking institution addressed:For your information your attention is again

directed to a letter on the use of coin-countingmachines, issued by the Federal KeserveBoard some time ago, but which is especiallyappropriate at this time, reading as follows:

"The use of gold coin in machines for count-ing money has proved that there is quite aserious abrasion of the coin. This draws at-tention to the fact that in our country, as wellas in Europe, the use of gold coin as currencyin the hands of the people is disappearing.The public does not want to carry gold coin,and its use leads to rapid abrasion and conse-quent loss of value. In the United States itmay be truly said that as a practical mattercoined gold is only used as security behindgold certificates, or for foreign exchange pur-poses, where nothing else can be used in ad-justing international balances.

"The manufacturers of coin-counting ma-chines will undoubtedly make a strenuous pro-test against the enforcement of any order for-bidding or discouraging the use of their ma-chines for counting gold coin, but when thematter is explained to them they ought to seethe importance of protecting the country'sgold supply and discouraging the wasteful useof gold for pay rolls, especially when it is re-membered that the recipient of gold coin wouldin most cases much prefer paper money. Ofcourse, it is unnecessary to say that coin-counting machines are very valuable in count-ing silver money, and their use in this way isin no way objected to, silver coinage beingaccepted by tale and not by weight.

" I t is suggested that the banks of your dis-trict bo invited to point out to corporations orfirms of their district using these coin-countingmachines that they should forego the slightadvantage or greater convenience derived fromthe use of gold in making up their pay rollsin view of the loss such use causes to the coun-try by the abrasion involved and by the keep-ing in circulation of gold, which, if held by theFederal Reserve Banks, would add to" thegreater credit power of the country."

| telegraph, and express service when suchcharges fall directly upon the Federal ReserveBank.

Exemption From Certain Taxes,

The Commissioner of Internal Revenue haswritten the Federal Reserve Board that, in hisopinion, Federal Reserve Banks are not sub-ject to the tax upon charges for telephone,

Protection of Bank Depositors.

The Secretary of the Treasury on November16 issued a statement as follows:

"Among the many absurd and viciousrumors which are being put into circulationthese days, probably through pro-Germaninfluences, is one that the Government proposesto confiscate the money on deposit in the banks.The absurdity of the statement is obvious onits face, but I have received letters from,several parts of the country which indicatethat this rumor is being circulated for an evilpurpose. Of course, these minors are whollywithout foundation. In fact, the Governmenthas no power to confiscate the money ofdepositors in banks."

'••; Christmas Gifts. ' •

The following circular letter, issued by a largenational bank in New York on November 16 toits customers, affords a statement of the policythat is being pursued by many institutions-re1-garding the use of gold as holiday gifts. .'

To our customers and friends:The use of gold coins W holiday presents*,

during the war period, is b.eing discouraged bythe Government—not for the purpose of abol-ishing a time-honored'"custom, but, to put .itplainly, to conserve its supply of gold ana thuskelp win the war. - . '

That ti hearty : and willing ' response fromeveryone will be forthcoming goes withoutsaying. '

It occurs to us that -excellent substitutes cai.be found, through the use of Liberty bonds,war-savings certificates, :and United State'sthrift cards. These should not only prove tobe acceptable presents, but their use would en-courage the further development of thrift—tothe importance of which the people of thiscountry are slowly awakening. ' ' Easy _ tocome, easy to go/' as the sayingis, can be safelyapplied to money presents. Why not intro-duce the investment feature into your Christ-mas gifts? You will serve three purposes:

The spirit of the holiday time will be gratisfied.


932 FEDERAL RESERVE BULLETIN. DBCBMBBR l, 1917.

The necessity for saving and for thrift will boemphasized.

Your country will be backed in its fight forright.

We will gladly furnish full details regardingLiberty bonds, war-saving certificates, orUnited States thrift cards, and are in positionto supply them at face value. No charge forour services. Your cooperation in this will bedirect support to a noble cause.

Success of the Second Liberty Loan.

The Secretary of the Treasury, on Novem-ber 8, issued the following statement:

"On October 1, 1917, in Treasury Depart-ment Circular No. 90, the following announce-ment was made: 'The Secretary of tne Treasuryinvites subscriptions, at par and accrued inter-est, from the people of the United States,for $3,000,000,000 of United States of America10-25 year 4 per cent convertible gold bonds,of an issue authorized by aci^ of Congressapproved September 24, 1917; the right beingreserved to allot additional bonds up to one-half the amount of any oversubscription/

" I congratulate the American people uponthe phenomenal success of the second LibertyLoan. The final returns just received from the12 Federal reserve banks show that the totalsubscriptions were $4,617,532,300—an over-subscription of $1,617,532,300, or approxi-mately 54 per cent of the amount offered.This is a more gratifying result even than wasthe first Liberty Loan, when $2,000,000,000of bonds were offered and a subscription ofmore than $3,000,000,000 was received.

"These financial operations, greater in mag-nitude than ever attempted by any other Gov-ernment in the world, were not too great forthe American people. They not only absorbedreadily the full amount of the first and secondLiberty Loans, but in each instance over-subscribed the loan by more than 50 per cent.

" I t is an immensety gratifying fact that thesecond Liberty Loan was subscribed for byapproximately 9,400,000 men and women ofthe country. In this number, it is estimatedthat 9,306,000, or 99 per cent, subscribed inamounts ranging from $50 to $50,000, theaggregate of such subscriptions being $2,488,-469,350. The fact that such a vast numbersubscribed for bonds is significant of the wide-spread interest of the people in the purposes

of the war, and of their determined support ofthe Government in all measures required forits vigorous prosecution.

"In conformity with the original announce-ment, I shall accept 50 per cent of the over-subscription, making the total issue of thesecond Liberty Loan $3,808,766,150. Allot-ments will be made as follows:

Subscriptions.

Up to and including550,000.

Over £50,000 up toand i n c l u d i n g$100,000.

Over 8100,000 up toand including$200,000.

Over $200,000 up toand including51,000,000.

Over $1,000,000 up toand i n c l u d i n g$8,000,000.

Over $8,000,000 up toand including$30,000,000.

$50,000,000

Total

Amount.

$2,488,469,350

359,865,900

242,220,800

756,586,700

470,425,600

249,963,950

50,000,000

4,617,532,300

Allotment.

100 t>er cent

90 per cent, butnot l e s s than$50,000 bonds.

75 per cent, butnot less than$90,000 bonds.

60 per cent, butnot less than$150,000 bonds.

50 per cent, butnot lcs^ than$600,000 bonds.

41.20 per cent, butnot less than$4,000,000 bonds.

40.8152 per cent . .

Total

Amount.

$2,488,469,350

323,879,600

181,665,800

455,690,300

235,582,300

103,071,200

20,407,600

3,808,766,150

The subscriptions by Federal Reserve dis-tricts are as follows:

BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis...Kansas City...DallasSan Francisco.

Total.

Total sub-scriptionsreceived.

$476,950,0501,550,453,450380,350,250486,106,800201,212,50090,695,750585,853,350184,280,750140,932,650150,125,75077,899,850

292,671,150

4,617,532,300

Quota.

$300,000,000900,000,000250,000,000300,000,000120,000,00080,000,000

420,000,000120,000,000105,000,000120,000,00075,000,000

210,000,000

Over-subscrip-

tion.

Per cent.59725262631339543425

3,000,000,000 54

" I t is to the credit of the country that everyFederal Reserve district exceeded its quota ofthe $3,000,000,000 of bonds offered. TheAmerican people may well felicitate them-selves upon this extraordinarily satisfactoryresult.

" I t may be asked why I do not accept thefull amount of the subscription. The answeris simple: The Government must never alterthe basis upon which it offers an issue of bondsafter subscriptions are closed. Having an-nounced that only one-half of the oversub-scription would be accepted, the Government


DECEMBER 1.1917. FEDERAL BESERVE BULLETIN. 933

must, of course, faithfully observe that basis.Whenever loans are offered to the public, thebanks and the public adjust themselves bothconsciously and unconsciously to the basis ofthe offering, and it would be extremely unwiseto alter that basis after the subscriptions havebeen received.

"The success of the second Liberty Loan,like that of the first, is a distinct triumph forthe people of the United States. It not onlydemonstrates their ability, patriotism, andresources, but augurs the certain success ofany future loans that may be offered by theGovernment.

"This great loan would have been impossiblewithout the loyal support and cooperation ofthe people of the country, but even that sup-port could not have been secured except for theindefatigable, unselfish, and earnest work ofhundreds of thousands of splendid men andwomen throughout the United States whothrew themselves into the task without reser-vation. I wish to thank all these splendidvolunteers and patriots, and I particularlywish to thank tne bankers of America, theLiberty Loan organizations which were formedin every State, city, town, and community inthe United States, the women of America whomade a distinctive fight for the Libert}" Loanthrough their own organizations throughoutthe country, the Boy Scouts and Girl Scouts,the newspapers and periodicals which gave, asin the first Liberty Loan, the most effective,unselfish and generous support through theircolumns and otherwise, the press associations,the business houses, the various patriotic or-ganizations, cooperative and fraternal societiesand other organizations throughout the lengthand breadth of the land which so generouslyand earnestly gave their services to the greatcause. Thanks are due also to those employerswho, in such large numbers, gave the fullestopportunity to their employees to subscribe tothe loan upon terms commensurate with theirability to make the required payments.

i' I should like to make special mention of thesoldiers and sailors of America who came for-ward with subscriptions amounting to moreper capita than those received from the civilpopulation. These gallent men are not onlygiving their services and their lives to theircountry, but are lending their money as wellto strengthen the Government in this greatwar for America's rights and world democracy.

"I understand that an impression prevails insome quarters that another offering of Govern-ment bonds will be made in the month of Jan-

uary, 1918, I desire to correct this impression.In view of the large over-subscription of thesecond Liberty Loan, I am glad to be able to

| state that this will not be necessary.'5

State Banks and Trust Companies Admitted.

The following list shows the State banks andtrust companies which have been admittedto membership in the Federal Reserve systemduring the month of November:

Brooklyn Trust Co., Brooklyn,N. Y . .;.. . .

St. Clair County Ravings Bank,Port Huron, Mich

Citizens Bank, Clinton, WisMinors Deposit Bank, Lykcns, Pa|Citizens Commercial' Trust Co..

Buffalo, N. Y '.Citizens Trust A Sayings Bank,

Columbus, Ohio ,Savari?iah I'iank & Trust Co.,

Savannah, GaManufacturers Trvut Co.. Brook-

lyn, N. V '. IThe "Baltimore Trust: Co., Balti- I

more, M"d iCitizens Savings &• Trust Co.,

Cleveland, OilioManhattan Co.. New York-. N. Y.Fidelity Trust Co., New York,

N.Y'.Peoples Trust Co., Brooklyn, N-.Y.iW. R. Grace & Co/s Hank, Now i

York, N.Y ". iPaoii State Hank, Paoli, Ind iFarmers Banking Co., Prairie !

Dopot. Ohio •Wayne Co. <£- Home Savings BanVv

Detroi t. Mich ....'!Baltimore Commercial Bank. ;

Baltimore, Af dIndustrial Trust Co.. Providence. :

R.IFirs? Trust <fe Savings Bank.

Chicago. HI '. .'.United Stales Bank of Chicago, I

Chicago, III iAustin State Bank, Chicago, 111..Union Trust Co. of New York,

New York, N. YUnited States Mortgage & Trust

Co., Now York, N. YMarion Central Bank, Marion, AlaColumbia Trust Co., New York. !

N . Y iHillsboro Bank & Savings Co.,

ITillsboro, OhioScandinavian Trust Co., New

York, N. YThe Citizens Commercial & Sav-

ings Bank, Flint, MichB. Dansard & Son's State Bank

Monroe, MichLapeer Savings Bunk, Lapcer,

Mich .'Farmers State Bank, Spring Val-

ley, Minn.Ohio Banking & Trust Co., Mas-

sillon, OhioKaspar State Bank, Chicago, 111...Union Hank, Jackson, MichCentral Dank & Trust Corporation,'

Atlanta, Ga ;

Germania Bank of the City of New !York

Capital.

SI, 500,000

100,00050,00050,000

1,250,000

700,000

630,000

1,000,000

1,000,000

i,000,0002,050,000

1,000,000 j1,000,000 I

500,000 i25,000 |

t30,000 i

3,000,000

500,000

3,000,000

500,000

200,000500,000

3,000,000

2,000,00050,000

5,000,000

50,000 !

1,000,000

150,000 :

100,000 :

50,000 :

25,000 ;

150,000 :500,000 .400,000 s

1,000,000:

400,000 ;

Surplus.

82,808,481

50,00010,000110,000

1,250,000

150,000

570,000

300,000

2,000,000

4,000,000 |4,500.000 i

i1,000,0001,000,000

500,000750

6,000

3,000,000 !

100,000 I

4,000,000 I

500,000 !

30,000100,000

4,500,000

4,000,000100,000 '

5,000,000!

12,000 |

1.500,000 |

175,000 I

20,000

10,000

5,00087.500300,000100,000

300,000

600,000

Total

$40,270,029

1,319,436478,360

679,897

18,196,063

5,271,822

S, 415,862

15,031,812

15,990,74574,532,63182,094,144

13,965,14029,443,301

6,675,523194,868

339,528

oH, 68 [,743

2, 668,945

71,783,303

84,207,394

869,2202,668,743

87,0-13,831

93,377,698497,661

124,186,774

551,959

11,359,362

3,438,805

1,627,265

545,282

149,092

1,307,0366,476,7544,388,130

9,620,109

8,731,76(5


934 FEDERAL RESERVE BULLETIN. DlCCKMBBR 1, 1917.

Passaic Trust & Safe Deposit Co.,Passaic,N. J

Utica Trust & Deposit Co., Utica,N . Y

Bridgeport Trust Co., Bridgeport,Conn

Kent State Bank, Grand Rapids,Mich

The City Trust & Savings Bank,Youngstown, Ohio

Citizens Trust Co. of Utica, Utica,N . Y

The Grafton Banking & Trust Co.,Grafton. W. Va. — •.

Exchange Bank of Kentucky,Mount Sterling, Ky

Enderlin State Bank, .Gnderiin,N. Dak '

Worcester Bank & Trust Co.,Worcester, Mass

Citizens & Southern Bank, Savan-nah, G a

Ladd & Tiiton Bank, Portland,Ores I

Philadelphia Trust Co., Philadel-}• phia, Pa IThe Union Trust Co. of Pitts- I

burgh, PaThe Union & New Haven Trust

Co., New Haven, ConnPeoples Bank & Trust Co. of

Westfield, N. JQneida County Trust Co., Utica,

Capital.

&#Westminster Bank, Westminster.

S.CNoel State Bank. Chicago, 111Grand Rapids Savings Bank,

Grand Rapids, MichThe Brunswick Bank and Trust! .Co., Brunswick, GaThe Citizens Bank of Norfolk,

Va., Norfolk, Va

Total.

$200,000

400,000

500,000

500,000

200,000

500,000

100,000

50,000

50,000

1,250,000

1,000,000

1,000,000

1,000,000

1,500,000

650,000

100,000

250,000

100,000300,000

400,000

100,000

600,000

47,210,000

Surplus.

§100,000

200,000

300,000

500,000

150,000

400,000

30,000

25,000

10,000

500,000

1,000,000

1,000,000

4,000,000

34,500,000

500,000

80,000

250,000

25,00075,000

350,000

72,000

500,000

87,301,731

Totalresources.

$7,130,181 j

11,850,975 \

7,866,545 j!

9,419,740 Ij

4,752,034 j

10,641,931 |

1,180,082 |

434,572 j

395,250

24,123,110

18,537,851

21,427,913

26,160,684

137,516,868

4,574,303

2,005,718

2,428,746453,433

2,581,716

8,479,169

1,049,176

5,896,0021,190,986,947

One hundred and seventy-six State institu-tions are now members of the system, havinga total capital of $179,865,700, total surplusof $248,384,196, and total resources of$4,275,468,908.

Membership of State Institutions.

The following letter, addressed to the officersand directors of State banks and trust com-panies in the State of Oregon, has been issuedby the banking department of that State underdate of November 10:

Since the establishment of the Portlandbranch of the Federal Reserve Bank of SanFrancisco, State bankers are showing con-siderable interest in the Federal Reserve sys-tem, and this office is receiving many letters,asking for information and advice regardingapplications for membership.

; The amendments to the Federal Reserveact, approved by the President June 21, 1917,

contain many liberal provisions pertaining tomembership of State banks and trust com-panies. Prior to the enactment of theseamendments, I felt a hesitancy in recommend-ing membership to our State institutions, butsince the privilege of retaining full charter andstatutory rights has been extended, all objec-tions have apparently been eliminated, and Iam of the opinion that eligible banks willfind membership exceedingly advantageous.

As I view it, the matter is both a patrioticduty and an economic, expediency. Asidefrom the great need at this time for an effi-cient mobilization of the banking resources tofortify our Nation in meeting extraordinary warconditions, in my opinion, membership is goingto prove very helpful in solving future prob-lems and meeting contingencies that are sureto arise during the readjustment period afterthe war. Just now our Nation and the FederalReserve system needs the support of the banks;later the banks are going to need the supportof the system, and now is the time to make thealliance.

President Wilson, as you know, recentlyissued a call urging all eligible State banks toaffiliate themselves with the Federal Reservesystem to the end that the financial positionof the country might be thereby materiallystrengthened. The matter, therefore, is en-titled to the careful and thoughtful considera-tion of every banker in the State, and if yourbank is eligible, a personal interview with theofficials of the Portland branch would seemadvisable, in order that the advantages ofmembership and the policies of the bank maybe fully explained.

This department is ready and willing at alltimes to cooperate with you in every waypossible.

Yours, very truly,S. G. SARGENT,

Superintendent of Banks.

Organization of Branches.

The following is a draft of by-laws for use bybranches of Federal Reserve Banks which or-ganize as offices of the parent Federal ReserveBank and not as branches assigned a distinctcapital and territory. It is expected that theby-laws, as thus presented, will be adopted inpractically this form by all branches which areorganized on the new basis:


DECEMBER l, 1917. FEDERAL RESERVE BULLETIN. 935

By-Laws of Branch Bank of Federal Reserve Bank of

Pending the promulgation by the Federal Reserve Boardof rules and regulations, under authority of section 3, gov-erning the operations of branch banks, the following by-laws have been adopted by the Federal Reserve Bank of

, with the approval of the Federal Reserve Board:

ARTICLE I.

SECTION 1. Name and place of business.—This branchshall have its principal place of business in the cityof , State of , and shall be known as thebranch of the Federal Reserve Bank of .

SEC. 2. Functions.—Under the direction of the FederalReserve Bank, hereinafter referred to as the head office,its functions shall be:

(1) To receive from any member bank within the col-lection zone assigned to it under section 3, Article I, ofthese by-laws, and from the United States, for credit withthe head office, deposits of current funds in lawful money,national bank notes, Federal Reserve notes, or checks anddrafts payable upon presentation, and for collection, ma-turing notes and bills.

(2) When tendered by such member banks within itszone as may elect to deal directly with the branch, to re-ceive applications for rediscount under authority of sec-tion 13 of the Federal Reserve act, and to transmit such,applications to the head office with the recommendationof the local board or of the discount committee selectedby the local board.

(3) To pay checks drawn against the head office bymember banks within its collection zone out of fundsdeposited with the branch by the head office for thatpurpose.

(4) To act as a clearing house for member banks withinits zone and such nonmember banks as may qualify asclearing members.

(5) To provide for the custody of unissued FederalReserve notes under appropriate safeguards and to deliverFederal Reserve notes when authorized to do so by thehead office to member banks within its collection zone.

(6) To receive from any member banks or Federal Re-serve Banks for collection and remittance, or for collectionand credit with the head office, or with any other FederalReserve Banks through the head office, items drawnagainst any bank within its collection zone.

(7) To receive from any nonmember bank or trust com-pany within its collection zone solely for the purpose ofexchange or collection, deposits of current funds in lawfulmoney, national-bank notes, Federal Reserve notes,checks and drafts payable upon presentation, or maturingnotes and bills, provided, such nonmember bank or trustcompany maintains with the head office a balance sufficientto offset the items in transit held for its account by thehead office and its branches.

SEC. 3.—The collection zone for branch shallbe known as the zone, and shall include the fol-lowing cities:

SEC. 4. Reports.—The • - branch shall make a dailyreport to the head office on forms to be prescribed,showing—

(a) Amounts received on deposit for credit with thehead office.

(b) Checks paid for the head office.(c) Discounts recommended.(d) Items received for collection and forwarded, and for

which credit should be given by the head office at theexpiration of the time allowed in collection schedule.

SEC. 5. Reserve account.—The balance appearing to thecredit of a member bank on the books of the head officeshall constitute its reserve, but member banks depositingwith the branch may charge the Federal Reserve Bankwith all items on day of deposit unless drawn against banksfor which allowance is provided in collection schedule,in which case such banks may take credit at the expirationof such time allowance. Member banks may likewisetake credit for the proceeds of discounts recommended bythe local board on the date that the local board or its dis-count committee recommends the granting of such dis-counts, provided, the notes, drafts, or bills of exchangeoffered for rediscount, or the note of the applying bank se-cured hy eligible collateral, have been actually receivedby the branch. The head office reserves the right to returnthrough the branch any items which may be determinedto be ineligible or which, for any reason the head office isunwilling to accept, in which case items so returned willbe charged to the reserve account of the bank receivingcredit therefor.

ARTICLE II.

SECTION 1. Number and quorum.—The number of di-rectors shall be five, of whom the manager shall be one.A majority of the directors shall constitute a quorum forthe transaction of business, but less than a majority mayadjourn from time to time until a quorum is in attendance.

SEC. 2. Vacancies.—Vacancies in the membership of theboard shall be filled and successors selected in the mannerprovided by law.

SEC. 3. Meetings.—There shall be a regular meeting ofthe board on the Tuesday next preceding the first Fridayof each month at 10 o'clock a. m., or, if that day be aholiday, on the first succeeding full business day. Themanager shall be empowered to call a special meeting atany time, or shall do so upon the request of the FederalReserve Bank of or the written request of any twodirectors. Notice of said meeting, if sent by mail, shallbe mailed at least one day prior to date of meeting, and ifgiven by telegraph or telephone at least two hoursJbeforethe time of meeting.



SEC. 4. Powers.— (a) The board of directors shall super-vise the operation of the branch under direction and con-trol of the Federal Reserve Bank of , subject to suchregulations as the Federal Reserve Board may prescribe,and shall exercise the functions prescribed in Article I,section 2, of these by-laws.

SEC. 5. Directors when present at directors' meetingsshall receive a compensation of dollars per day foreach day the board is in session, and an allowance to coveractual necessary expenses incident to attendance at regu-lar or special meetings of the board.

SEC. 6. The directors of the Federal Reserve Bank ofshall fix the compensation of officers, clerks, and

employees of the branch, subject to the approval of theFederal Reserve Board.

SEC. 7. All expenditures of the branch shall be subjectto the approval of the directors of the Federal ReserveBank of •.

SEC, 8. Order of business.— The following shall be theorder of business at each meeting of the board of directorsof the branch:

(1) Reading and disposition of minutes of the last regularmeeting.

(2) Report of the manager, including information con-cerning banking and business conditions in the branchterritory, as well as detailed summary of all business trans-acted since last regular meeting and statement of presentcondition, the latter to include:

(a) Statements concerning clearing operations.(b) All official correspondence received from the Federal

Reserve Bank of .(3) Reports of committees.(4) Unfinished business.(5) Approval of reports and recommendations to Federal

Reserve Bank of .(6) New business.

ARTICLE III.

OFFICERS.

SEC 1. The officers, who shall be chosen by the boardof directors of the Federal Reserve Bank of , shallbe a manager, who shall be one of the directors of thebranch, and a cashier. They shall hold office during thepleasure of the directors of the Federal Reserve Bank of

SEC. 2. Manager.— The manager shall preside at all di-rectors' meetings and shall have general charge of thebranch and shall be officially designated as u Manager,Branch." The manager shall, jointly with the cashier,have charge of all moneys received or paid out on accountof the branch and shall sign all checks for the payment ofmoney as may be authorized by the Federal ReserveBank of . He shall have custody of all moneys,investments, and collaterals held by the branch, subjectto such rules as the board may adopt as to their safety.In all cases where duties of subordinate officers of the

branch are not specifically prescribed by the by-laws orthe board of directors of the branch or the Federal ReserveBank of , they shall be the duties prescribed byand the instructions of the manager.

SEC. 3. Acting manager.—In the absence or disabilityof the manager, the Federal Reserve Bank ofmay appoint an acting manager, who shall exercise thepowers and discharge the duties of the manager; and forsuch services he shall receive a compensation to be fixedby the Federal Reserve Bank of .

SEC. 4. Cashier.—The cashier shall have such jointcustody of all moneys, investments, and collaterals asmay be delegated to him by the manager, subject to suchrules as the board may adopt as to their safety. He shallcountersign all checks for the payment of money signedby the manager. He shall keep the minutes of the boardmeetings and of all committees of the board and performsuch other duties as may be assigned to him by the manager,subject to the approval of the board of directors.

SEC. 5. Acting cashier.—In the absence or disabilityof the cashier, the board of directors of the branch mayappoint an acting cashier, who shall exercise the powersand perform the duties of the cashier and shall receivea compensation to be fixed by the Federal Reserve Bankof .

ARTICLE IV.

COUNSEL.

| SECTION 1. The general counsel of the Federal Reserve| Bank of shall act as counsel for the branch, and| shall represent the branch in such matters as may be

assigned to him and shall approve all legal documents;and said general counsel may appoint a local attorney asassociate counsel, with a retainer to be approved by theFederal Reserve Bank of .

ARTICLE V.

AUDITOR.

SECTION 1. The auditor of the Federal Reserve Bankof shall act; as auditor of the branch.

ARTICLE VI.

BUSINESS HOURS.

SECTION 1. The bank shall be open for business from9 a. m. to 2:30 p. m., on each day except Saturdays andSundays, or days or parts of days established as legalholidays. On Saturdays the bank shall open at 9 a. m.and close at 12 noon.

ARTICLE VII.

AMENDMENTS.

These by-laws may be amended at any regular directors'meeting by a majority vote of the entire board of direc-tors of the Federal Reserve Bank of , subject tcthe approval of the Federal Reserve Board.


D2CEMBEK 1, 1917. FEDERAL EESERVE BULLETIN. 937

Credit Needs of Farmers.

The Bureau of Markets of the Departmentof Agriculture has tabulated reports frombanks in several States upon the credit needsof farmers which can be supplied from localsources; and the department has furnished theresults to the Federal Keserve Board. Theyare here republished. with the consent of theDepartment of Agriculture, as follows:

The accompanying returns indicate that ofthe total amount of capital which the farmerneeds to borrow to plant crops this fall andnext spring in the various States mentioned,namely, Montana, Idaho, North Dakota, SouthDakota, Nebraska, Kansas, Oklahoma, andTexas, the amount available locally is inade-quate. The extent to which available localcapital is insufficient to meet the borrowingneeds of the farmers in these States, variessomewhat between the States and within eachof the States. Especially in Montana andNorth Dakota, and to a less extent in Texas,Oklahoma, and Kansas, is the insufficiency oflocal capital apparent, while in the States ofIdaho, South .Dakota, and Nebraska, there islittle need on the whole for drawing on out-side capital to meet the farmers5 borrowingneeds for crop purposes. In Montana, theestimated percentage of credit needs of farm-ers, which can be supplied from local sources,is 60.6 per cent for the fall crop 1917, and 57.6per cent for the spring crop 1918. In NorthDakota the corresponding percentages are 74.3per cent and 71.7 per cent, respectively. InSouth Dakota and Nebraska, on the otherhand, the percentage of capital available lo-cally to meet the borrowing needs of farmersranges above 90 per cent, the exact percentagesfor South Dakota being 92.6 per cent for thefall crop 1917, and 92.9 per cent for the springcrop 1918, the corresponding percentages forNebraska being 90.6 per cent and 93 per centrespectively.

The need for outside capital to meet theborrowing needs of farmers is especially ap-parent in some of the districts within theStates. Thus, in Montana less than one-halfof the capital needed in the north central dis-trict is available from local sources, the per-centage for the fall crop of 1917 being 44.1per cent and for the spring crop 1918 being

26416—17 4

47.2 per cent. Similarly, only a little morethan one-half of the necessary capital is avail-able locally in the northwestern and west cen-tral districts in North Dakota, the percentagefor the fall crop 1917 in the northwestern dis-trict being 59.9 per cent and for the springcrop 1918 being 53.2 per cent, while in thewest central district the percentages are 56per cent and 44 per cent, respectively. Like-wise, in the southwestern district of Kansasthe capital available locally is 60.7 per centfor the fall crop 1917 and 45.2 per cent for thespring crop 1918. In the northwestern dis-trict of Oklahoma the percentage of availablelocal capital for the fail crop 1917 is 49.2 percent and for the spring crop 1918, 64.5 percent. It will be noted that in such States asMontana, North Dakota, South Dakota, Kan-sas, and Texas the districts showing thegreatest lack of available local capital for croppurposes are located in areas having relativelyslight rainfall.

Estimated percentage, of credit needs of farmers which can besupplied from local sources.

[Figures based on reports from banks.]

MONTANA.

Districts.

Montana

1. Northwest2. North central3. Northeast4. West central4a. West central5. Central6. East central7. Southwest8. South central9. Southeast

Percentage availablelocally of the totalamount of moneywhich farmers needto borrow—

To plantcrops in

fall of 1917.

60.6

88.741.153.477.5

100.061.553.5

100.088.570.4

To plantcrops inspring of

1918.

57.6

85.147.253.071.2

100.060.257.5

100.086.659.4

IDAHO.

Idaho

1. Northwest2. North central4. West central5 Central7. Southwest8. South central9 Southeast

89.8

93.10

83.897.095.099.486.8

89.7

9(3.1100.057.994.993.794.688.5



Estimated percentage of credit needs of farmers which can hesupplied from local sources—Continued.


NORTH DAKOTA.

Districts.

North Dakota

2. North central

4. West central5. Central6. East central

8. South central9 Southeast. . . . . .

Percentage availablelocally of the totalamount of moneywhich farmers needto borrow-

To plantcrops in

fall of 1917.

74.3

59.987.097.856.077.4

100.080.578.886.8


1918.

71.7

53.279.795.244.473.396.974.678.287.1

SOUTH DAKOTA.

South Dakota

1. Northwest ,2. North central ,3. Northeast ,4. West central ,5. Central6. East central ,7. Southwest ,8. South central9. Southeast

NEBRASKA.

Nebraska

1. Northwest2. North central3. Northeast4. West central5. Central6. East central7. Southwest8. South central9. Southeast

KANSAS.

OKLAHOMA.

Oklahoma

1. Northwest2. North central3. Northeast4. West central5. Central6. East central7. Southwest8. South central9. Southeast

92.6 I

90.6

88.4

92.9

68.695.694.987.499.896.9

100.075.8

100.0

71.794.798.888.895.596.3

100.075.499.0

93.0

100.096.793.867.397.099.495.896.998.3

100.097.095.986.395.899.795.099.597.4

Kansas

1. Northwest2. North central3. Northeast4. West central5. Central6. East central .7. Southwest8. South central . .9. Southeast

83.0

81.092.599.273.579.098.960.784.795.9

84.8

89.195.298.066.185.299.845.288.197.2

81.1

49.296.795.094.397.494.184.698.398.3

64.596.696.890.486.854.286.189.491.1

Estimated percentage of credit needs of farmers which can besupplied from local sources—Continued.


TEXAS.

Percentage availablelocally of the totalamount of moneywhich farmers needto borrow—

Districts.

Texas

1. Northwest2. North central3. Northeast4. Westcentral4a. West central . .5. Central6. East central8. South central9. Southeast

To plantcrops in

fall of 1917.

81.5

71.998.091.8

100.062.483.399.277.793.3


1918.

82.8

69.39S.094.2

100.058.179.793.962.896.9

SUMMARY FOR IMPORTANT STATES.

MontanaIdahoNorth Dakota..South Dakota..NebraskaKansasOklahomaTexas

60.689.874.392.690.683.088.481.5

57.689.771.792.993.084.881.182.8

Coupons from United States Bonds,

The Treasurer of the United States onNovember 5 issued instructions for the handlingof coupons from United States bonds, asfollows:

Coupons from United States bonds areactually payable only on presentation to theTreasurer of the United States, to an AssistantTreasurer of the United States, or to a FederalReserve Bank or branch thereof. When sopaid they should be canceled by punching ahole one-fourth inch in diameter in the middleof the coupon and near the top thereof throughthe words "United States" or immediatelythereunder. The hole must not be punchedthrough the date or number on such coupon,nor through the amount thereon. Couponsshould be arranged according to loan anddenomination, 100 of the same kind being putunder a strap. The remaining odds, arrangedby loan and denomination, should be strappedin 100s, leaving only one package containingless than 100. Each strap should bear a state-ment in brief of the contents.


DECEMBBB 1,1917. FEDERAL BESEBVE BULLETIN. 939

The total amount of coupons paid on anyparticular day should be charged in the Treas-urer's account of that date and listed in the"abstract of payments" on the transcript ofthe paying office as "United States couponspaid $ __," giving symbol number 17199,and forwarding in support of the debit a chargedocument on Form No. 6518 (if a FederalReserve Bank), or No. 1748 (if a sub treasury)—"Statement of coupons paid—U. S. bonds."This charge document must accompany thetranscript in which the entry is made.

Coupons should be packed securely, sealedand forwarded, by registered mail, to theTreasurer of the United States, Division ofBanks, Loans, and Postal Savings, Washing-ton, D. C. A statement of paid coupons (Form5686), properly filled out, must be inclosedwith the coupons. The date of this form mustcorrespond »to the date of the transcript of theTreasurer's account in which the coupons arecharged and the total amount shown thereonmust agree with the amount charged in saidtranscript.

All postal savings loans of series 1 to 6, in-clusive, must be listed by series on Form 5686,while postal savings loans of the seventh and !

subsequent series must be listed under the headof "Consolidated series."

In order to facilitate the verification of !coupons and the clearing of such items, it isurged that each paying agency prepare cou-pons with care and forward them promptlyto the Treasurer the same day they are paid.

Nothing in these instructions is to be con-strued as prohibiting the holder of UnitedStates coupons from cashing them at any bankor trust company that is willing to accommo-date its patrons in this respect, or at a postoffice authorized b} the Postmaster General tocash such coupons. Coupons so cashed, how-ever, must under no circumstances be canceledexcept by the Treasurer of the United States,an Assistant Treasurer, or a Federal ReserveBank to whom they have been delivered foractual payment. Coupons previously can-celed will not be so paid.

Bank Failures.

The Comptroller of the Currency on Novem-ber 19 made the following statement:

The national banks of the country are noweight times as safe as they were during the 33-year period prior to June 30, 1914, provided we

accept as a criterion the reduced proportion oflosses sustained by depositors of failed banks tothe total deposits of the national banks duringthe past three years as compared with the pre-ceding 33 years.

Records which have just been compiled showthat for the 33 years from 1881 to 1914 thelosses to depositors which arose from bank fail-ures averaged annually during that periodtwenty-eight one-thousandths of 1 per cent ofthe aggregate deposits of the national banksduring those years. During the fiscal yearsending June 30, 1915, 1916, and 1917, the per-centage of losses of failed banks to total de-posits of all banks has averaged only aboutthree one-thousandths of 1 per cent, or lessthan one-eighth of what these losses averagedduring the preceding 33 years.

This great reduction in losses is largely theresult of the improved system of national-bankexamination, of the greater thoroughness exer-cised in these examinations, and of the policyof requiring national banks to observe morerigidly the provisions of the law intended fortheir protection and the protection of theirdepositors and shareholders.

The figures show that if the Government oran insurance company had been insuring de-posits of all national banks from the year 1881to 1914, it would have been necessary to chargethe banks an annual premium, of 28 cents perthousand, or $280 per million, of deposits tocover the actual losses, but during the pastthree years under improved methods of ex-amination the losses from national-bank fail-ures have been so greatly reduced that the pay-ment of less than 3 J cents per thousand, or lessthan $35 per million, of deposits would havebeen sufficient to insure the payment in full toall depositors of all the national banks whichhave failed during the past three fiscal years.

These figures were developed as a result of aspecial investigation recently made by theComptroller of the Currency into the subject ofnational-bank failures in the United States forthe past 36 years, or since July 1, 1881, whichhas just been completed. The investigationwas iiot carried beyond 1881 because detailedfigures for those earlier years are not available.

The record shows that the total approximate,loss to depositors for these 36 years on accountof all national-bank failures was $36,671,000,or 18.87 per cent of the deposits of these failedbanks. The average annual loss in the 36-yearperiod for the entire country was therefore$1,018,638.



The largest loss to depositors reported forbanks failing in any one year was for the yearending June 30,1897, when the losses to deposi-tors aggregated $3,815,608, and represented152 one-thousandths of 1 per cent of the aggre-gate deposits of all national banks at that time.The proportion of losses to the total deposits ofall banks for that particular 3 ear was more thanforty times as great as the average for the pastthree }êars.

In 1897 the total deposits of all nationalbanks amounted to $2,515,000,000 and thelosses to depositors from failed banks amounted,as above stated, to $3,815,608. For the pastyear, deposits amounted to $12,769,000,000, or jover five times what they were in 1897, and yet 'the total losses to depositors of banks whichfailed in the year amounted to only about$369,000, or less than one-tenth of what thedepositors' losses amounted to for banks failingin 1897.

Of the 500 national banks which failed be-tween 1881 and July, 1917, 36 were restored tosolvency. . Of the number that failed 11 werelocated in the central reserve cities, of which .1was restored to solvency; 63 were located inthe reserve cities, of which 6 were restored, and426 were country banks, of which 29 werereopened. From 1881 to July, 1917, therewere 6 national bank failures in New YorkCity, 4 in Chicago, and 1 in St. Louis. Thefaifed banks in New York City returned todepositors 94.26 per cent of their deposits.The St. Louis bank paid 96.60 per cent, andthe Chicago banks paid an average of 100 percent, with 1.38 per cent of interest added.

Among the 54 reserve cities there are 24cities in which there have been no nationalbank failures since 1881. The reserve cities inwhich there were no bank failures for the periodnamed are Albany, Washington, Richmond,Charleston, Atlanta, Savannah, Birmingham,Galveston, Houston, Waco, Chattanooga, Clove-land, Milwaukee, St. Paul, Cedar Rapids, DesMoines, St. Joseph, Omaha, Muskogee, Okla-homa City, Tulsa, Los Angeles, Salt Lake City,and Ogden.

There were 15 reserve cities reporting only1 national bank failure in this period. Thesewere Brooklyn, Baltimore, Fort Worth, Louis-ville, Nashville, Indianapolis, Detroit, Dubuque,Kansas City, Ivans., Topeka, Pueblo, Seattle,Spokane, Portland, and San Francisco.

The only cities in which losses sustained bydepositors of failed banks aggregated in these36 years as much as $1,000,000 were Boston,Philadelphia, and Cincinnati.

The reserve and central reserve cities in whichthe depositors of failed national banks havealready received or are expected to receive even-tually in the aggregate at least 90 per cent of thedeposits of the banks which have failed since1881 in these cities, are New York, Chicago, St.Louis, Boston, Pittsburgh, Baltimore, SanAntonio, Louisville, Minneapolis, Kansas City,Mo., and San Francisco.

The depositors of the failed banks in thecentral reserve cities which failed in thisperiod received an average of 98.14 per cent;in the reserve cities they received or are ex-pected to receive an average of 82.65 per cent,while the depositors in the country banksreceived or are expected to receive an averageof 75.62 per cent.

The aggregate capital of all banks whichfailed from 1881 to 1917 was $77,533,000, andthe aggregate of their deposits at the time ofsuspension was $194,361,000. The approxi-mate average payment on deposits was 81.13per cent, while the average percentage of lossesof depositors to total deposits of all nationalbanks each year for the period was 23 one-thousandths of 1 per cent.

Commercial Failures Reported.The highly favorable features which have

characterized the insolvency record throughoutthis year continue in evidence, and commercialfailures in the United States during three weeksof November, as reported to E. G. Dun & Co.,number only 737, against 847 in the same periodlast year. In October—the latest month forwhich complete returns are available—therewere fewer defaults than for any October inover a decade, with the smallest liabilities, ex-cepting those of 1916, since 1909. The expan-sion in the indebtedness in comparison withlast year was about 82,000,000, or from$10,775,654 to $12,812,012, but there was anumerical reduction of 158, or from 1,240 to1,082. Aside from the first, second, and thirddistricts, where there were, respectively, in-creases of 23, 44, and 29 defaults, and in theninth district, where there was no change, thenumber was smaller than in October, 1916, inall of the 12 Federal Reserve districts, the de-creases ranging from 7 in the fourth district to75 in the twelfth district. As to the amount


DECEMBER 1, 1917. FEDERAL BESEHVE BULLETIN. 941

involved, there was more or less expansion inevery instance, except the fourth, tenth, elev-enth, and twelfth districts.

Failures during October.

Districts.

FirstSecondThird.Fourth"Fifth .SixthSeventh.EighthNinth.Tenth..Eleventh ..Twelfth

Total

Number.

1917 ; 1916

133219

69 .70 i6964

152f>54 5 '•35 !52 i

109 !

1 082 1

110175

4077

100119169

7145fii89

184

210

Liabj

1917

$1,260,5573,087,784

942.480903,909

1 698 482699,113

2,246,269453,481274,920181,995392,822690,200

12,812,012

1916

$825,3612,358,642410,820

1,030,8501,568,475530,163

1,438,967332,163273,594203,12G599,966

1,143,527

10,775,654

Notes Issued and Redeemed.

The Comptroller of the Currency issued onNovember 20, the following statement relatingto the national-bank notes and Federal Reservenotes issued and redeemed through his officeduring the year ending October 31, 1917, to-gether with the amount of notes of each classin the Treasury vaults on October 31, 1917, andthe amount of notes outstanding in the handsof the public on the same date:Total amount of national-bank notes

and Federal Ileserve notes issuedthrough the office of the Comp-troller of the Currency during theyear ending October 81, 1917 $.1, 301, 970; 430. 00

Amount redeemed and destroyedthrough office of Comptroller of theCurrency, during some period 464, 410, 082. 50

Total amount of notes outstandingOctober 31. 1917 1, 644, 520, 095. 00

Total amount new notes in vaultsOctober 31. 1917 996, 028, 330. 00

The large increase during the year ($689,~746,800) in the amount of Federal Reservenotes outstanding is due mainly to the issuanceof Federal Ileserve notes against the deposit ofgold or gold certificates with the Federal Re-serve Agents, amount of gold and gold cer-tificates so held October 31, 1917, being ap-proximately $600,000,000.

The figures as to the printing, issue, and re-demption and amount outstanding of national-

bank notes and Federal Reserve notes sepa-rately for the year ending October 31, 1917,are as follows:

New notes printed and delivered bythe Bureau of Engraving and Print-ing from Oct. 31,1916, to Out. 31,1917.

Notes issued by Comptroller's OfficeOct. 31, 1916, to Oct. 31, 1917

Notes redeemed and d e s t r o y e dthrough Comptroller's Office fromOct. 31, 1916, to Oct. 31, 1917

Excess of national-bank notes re-deemed and destroyed Oct. 31,1916,to Oct. 31,1917, over amount issuedduring same period

Excess of Federal Reserve notes issuedOct. 31, 1916, to Oct. 31, 1917, overamount redeemed and destroyed,same period

Total amount of new notes in vaultOct. 31, 1917

Reduction during the year in national-bank notes in vault of

Increase during the same period in Fed-eral Reserve notes in vault of.

Total amount of notes outstandingOct. 31, 1917

Reduction during the year in national-bank notes outstanding of

Increase during the same period inFederal Reserve notes outstanding of.

National-banknotes.

§261,705,870.00

325,570,430.00

335,679,477.50

10,109,047.30

341,088,330.00

72,889,530.00

716,276,375.00

9,792,915.00

Federal Re-serve notes.

§1,291,280,000

976,400,000

128,730,806

847,660,395

654,940,000

177,120,000

928,213,720

689,746,800

Acceptances to 100 Per Cent.

Since the Issue of the November BULLETINthe following banks have been authorized toaccept drafts arid bills of exchange up to 100per cent of their capital and surplus: Massa-soit-Pocasset National Bank, Fall River, Mass.;Mechanics National Bank, New Bedford, Mass.;Importers & Traders National Bank, NewYork City; W. R. Grace & Co.'s Bank, NewYork City; First National Bank, Cleveland,Ohio: Savannah Bank & Trust Co., Savannah,Ga.; Seaboard National Bank, New YorkCity; Franklin Trust Co., New York City; Sea-board National Bank, Norfolk, Va.; MarketStreet National Bank, Philadelphia, Pa.

Fiduciary Powers.

The applications of the following banks forpermission to act under section I lk of theFederal Ileserve Act have been approved sincethe issue of the November BULLETIN.

DISTRICT NO. 1.

Trustee, executor, administrator, and registrar of stockand bonds:

Plymouth National Bank, Plymouth, Mass.


942 FEDERAL RESERVE BULLETIN". DECEMBER 1, 1917.

Trustee, executor, and administrator:Vermont National Bank, Brattloboro, Vt.

DISTRICT NO. 2.

Trustee, executor, administrator, and registrar of stocksand bonds:

Phillipsburg National Bank, Phillipsburg, N. J.

DISTRICT NO. 7.

Trustee, executor, administrator, and registrar of stocksand bonds:

First National Bank, Manchester, Mass.

New National Bank Charters,

The Comptroller of the Currency reports thefollowing increases and reductions in the num-ber of national banks and the capital ofnational banks during the period from October27, 1917, to November 30, 1917, inclusive:

Banks.New charters issued to 12With capital of $415,000Increase of capital approved for , . 13With new capital of 2,070,000

Aggregate number of new charters andbanks increasing capital 25

With aggregate of new capital authorized 2, 485,000

Number of banks liquidating (other thanthose consolidating with other nationalbanks) 8

Capital of same banks 335,000Number of banks reducing capital 2Reduction of capital 52, 800Total number of banks going into liquida-

tion or reducing capital (other than thoseconsolidating with other national banks). 8

Aggregate capital reduction 387, 800

The foregoing statement shows the aggregate ofincreased capital for the period of the banksembraced in statement was 2,485,000

Against this there was a reduction of capitalowing to liquidations (other than for con-solidation with other national banks) andreductions of capital of 387, 800

Net increase 2, 097, 200

Principal Changes in the Condition of EuropeanBanks Since the Outbreak of the War,

Some idea of the effect of war financing onthe status of the principal European banks ofissue may be had from the following tables and

accompanying diagrams, indicating thechanges, month by month, in the amounts ofgold in vault, notes in circulation, and, inthe case of the French and Russian Centralbanks, also amounts of advances to the Gov-ernment carried on the books of the banks.These figures are not specified in the reportsof the Bank of England or of the GermanReichsbank, and for this reason more generalfigures showing the total loans and discountsheld by the two banks were chosen. Figuresof gold reserve include amounts of gold in vaultonly, i. e., are exclusive of gold, reported asheld abroad by both the French and Russianbanks.

Notes in circulation shown by the latter twobanks represent practically the entire papercurrency of the countries in question. InGreat Britain the circulation is made up atpresent largely of currency notes issued by thetreasury secured to a large extent by Govern-ment securities and to a much smaller extentby a deposit of coin and bullion with the ex-chequer. On October 31, 1917, the amountof currency notes outstanding was $911,057,000,secured by $783,950,000 of Government securi-ties, of $138,695,000 of coin and bullion, and of$25,737,000, on deposit at the Bank of England.In Germany the circulation of the country in-cludes besides the Reichsbank notes also notesof the other four banks of issue, which, however,have but local currency and are relativelyunimportant, about 82.8 millions of Imperialtreasury notes, and over $1,300,000,000 ofnotes of the so-called war loan banks.

Figures of "advances to the Government"and "short-term bonds" shown by the Frenchand Russian banks measure to some extentthe degree of direct assistance rendered to theGovernment through the issuance of banknotes. Advances of the Russian bank asshown under the caption " Short-term treas-ury bonds" indicate a practically continuousgrowth since the outbreak of the war. Directadvances to the Government are also specifiedamong the assets of the Bank of France, thetotals showing two considerable temporarycurtailments about the end of 1915 and 1916,



following the consummation of the two funded"rente" loans. For the Bank of England andthe Reichsbank figures indicating the totalloans and discounts outstanding were used,viz, total "securities," held by the bankingdepartment of the former, and total bills,including treasury bills, held by the latter. As amatter of fact the aid given to the Governmentby these two institutions was primarily throughassistance to the private banks rather than bydirect financing of the treasury. Both thesebanks of course have been discounting short-term treasury bills, but these bills are re-deemed by the Government from the pro-ceeds of the long-term funded loans. Thisprocedure is most clearly indicated by thecourse of curve 3 in the diagram, for theGerman bank, which shows sharp declinesbetween March and April, also between Sep-tember and October after the consummationof each of the six large loans prior to Octoberof the present year.

Bank of England.[In millions of £ sterling and dollars.]

Date.

1July 29Aug. 26Sopt.30Oct. 28..Nov. 25Doc. 30

1914.

Total gold andsilver in is-sue and bank-ing depart-ments.

Millionsof £.

1915. :Jan. 27 !Feb. 24 iMar. 31 iApr. 29May 26 iJune 30 1July 28Aug. 25Sept. 29 .-...!Oct. 27 !Nov. 24Dec. 29

1916.Jan. 20Feb. 23Mar. 29Apr. 2(5May 31Juno 28July 28Aug. 30Sept. 27Oct. 25Nov. 29Dee. 27

38.043.552.961.972.269.5

o9.263.953.955.261.752.260.907.361.556.252.551.5

52.255.0 I56.7 i58.9 '60.261.456.456.253.656.1">6.054.3

Millionsof !•

dollars. |

184.9

Bank of Eng-land notes inactual circu-lation.

f£. |

Total securitiesin bankingdepartment.

[dollars. of £ .

!

257.4301.2351.4338.2

336.8311.0262.3268.6300.3254.0296.4327.5299.3273.5255.5250.6

254. 0267.7275.9286.6293.0298.8274.5273.5260.8273.0272.5204.3

29.735.635.035.135.336.1

34.734.235.234.732.934.633.53.1.8 i32.832.833.335.3

33.832.533.634.135.435.936.036.236.536.737.739.7

144.5173.2170.3170.8171.8175.7

168.9166.4171.3168.9160.1168.4163.0154.8159.6159.6162.1171.8

164.5158.2163.5165.9172.3174.7175.2176.2177.6178.6183.5 j193.2 I

58.3139.7141.6124.3137.6121.0

dollars.

283.7679.9089.1604.9669.8588.8

130.2129.9184.6197.8190.3204.0245.4 I 1;187.8163.6115.5117.0144.9

633.6632.2898.4962.6926.1992.8194.2913.9796.2562.1569.4705.2

145.0126.2121.2 i121.6 I110.8129.5.117.4134.1137.6144.6 I146.5 |163.6 1

705.6614.2589.8591.8 j539.2630.2571.3652.6669.6703.7712.9796.2

Bank of England—Continued.

[In millions of £ sterling and dollars.]

Date.

Tsilvef W I Bank of

bUVCr 111 15s- ; l t

merits. fac£ Ic i rcu"

Millionsof £.

1917.Jan. 31Feb. 28Mar. 28Apr. 25May 30 ,June 27July 25Aug. 29Sept. 26Oct. 31

56.754.354.055.255.157.553.154.355.158.0

Millionsof

dollars.

275.9264.3262.8268.6268.1279.8258.4264.3268.1272.5

Millionsof£.

Total securitiesin bankingdepartment.

39.638.638.338.239.039.439.740.441.242.4

Millions!of

dollars.

192.7187.8186.4185.9189.8191.7193.2196.6200.5206.3

Millionsof £.

Millionsof

dollars.

196.1199.8183.6151.9160.1145.5159.5163.4151.8151.9

954.3972.3798.2739.2779.1708.1776.2795.2738.7739.2

Bank of France.

[In millions of francs and dollars.]

Date.

1911.July 30Augustx

Septemberl...October1

Decemberl

1915.Jan. 28Feb.28Mar. 25Apr. 29May 27June 24July 29Aug. 26Sept. 30Oct. 28Nov. 25Dec. 30

1918.Jan.27Feb. 24Mar. 30Apr.27May 25June 29July 27Aug. 31Sept. 28Oct. 26Nov. 30Dec. 28

1917.Jan. 25 !Feb. 22 |Mar. 29 !Apr. 26 |May 31June 28July 26Aug. 30Sept. 27Oct. 25

Gold in vaults.

Millionsof

francs.

4,141.3

4,233.84,238.94,248.74,169.03,913.43,927.24,129.34,266.34,550.14,730.04,835.25,015.3

5,011.65,035.95,006.34,803.64,731.54,492.24,515.54,239.04,158.24,247.43,764.63,382.8

3,326.93,198.93,252.43,294.53,239.93,253.23,263.63,274.73,282.33,289.0

Millionsof

dollars

799.3

817.1818.1820.0804.6755.3757.9797.0823.4878.2912.9933.2968.0

967.2971.9966.2927.1913.2867.0871.5818.1802.5819. 7726.6652.9

642.1617.0627.7635.8625.3627.9629.9632.0633.5634.8

Notes in circula-tion.

Millionsof

francs.

6,683.2

10,473.510,962.011,176.511,584.411,827.912.104.712)592.512,950.313,458.313,867.614,278.413,309.9

13,858.014,295.314,952.115,278.015,435.015,805.716,090.916,424.616,714.116,589.216)119.516,678.8

17,328.217,888.518,459.819,009.919,479.419,823.120,201.720,568.920,994.821,705.3

Millionsof

dollars.

1,289.9

2,021.42,115.72,157.12,235.82,282.82,336.22,430.42,499.42,597.52,676.42,755.72,568.8

2,674.62,759.02,885.82,948.72,979.03,050.53,105.53,169.93 225.83,201.73,111.13,219.0

3,344.33,452.53,562.73,668.93,759.53,825.93,898.93,969.84,052.04,189.1

War advances toGovernment.

Millionsof

francs.

3,900.04,400.04,700.05,200.05,500.06,000.06,300.06,300.08,700.06,900.07,400.05,000.0

5,400.05,700.06,700.07,200.07,500.07,900.08,300.08,400.08,500.08,600.06,500.07,400.0

8,100.08,800.09,500.09,900.0

10,500.010,600.010,700.011,200.011,650.012,150.0

MillionsOf

dollars.

752.7849.2907." 1

1,003.61,061.51,158.01,215.91,215.91,293.11,331.71,428.2

965.0

1,042.21,100.11,293.11,389.61,447.51,524.71,601.91,621.21,640.51,659:81,254.51,428.2

1,563.31,898.41,833.51,910.72,026.52,045.82,065.12,161.62,248.52,345.0

1 No bank statements issued.


944 FEDERAL RESERVE BULLETIN. DECEMBER 1, 1917.

60LD IN VAULT, BANK NOTES IN CIRCULATION:ETC,OFW£L£APIN6 EUROPEAN BHiifCS OF..fSSUE;SfNCE THE* OUTBREAKOF_TM£\IVAR.

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6

13]<4> 1 J&fJ? I I&!f5 1 13 IPGzrv&l:&Gl& in, YajuZt. Qxrvc 2: J/bdes ui CirculaCww.

Cvurve3.° .3$ilZ$ Gtisc0vm£e&, iitcl, Jreasury jBills and, Jfdpojzces.


,1917. FEDERAL RESERVE BULLETIN

GOLD IN VAULT.BANK NOTES IN CIRCULATION, ETC,OF THE LEA Pi NO EUROPEAN BANKS OF ISSUE, SWCE THE OUTBREAK OF THE WAR.

I3I4- IBIS 18 IFCwrvel: &od

Carre2.- Jfotes in Actual Cv Carve 3; Sect&rtuss in, Jd S

'SIS j !3Ip :—: ! taCurve!.- Gold tit Vcuzfc. Gwve2.Jw£es in (Xra&lation,,G&ri>e3.J?d,V(znjces &o tine. Oav&nwneht since £h&7t&r*

26416—17 5



Russian State Bank.

[In millions of rubles and dollars.]

Date.

1914.July 2 1 . . . .Aug. 29 . . .Sept. 29. . .Oct. 29 . . . .Nov. 29 . . .Dec. 29. . . .

1915.Jan. 29.. . .Feb. 21. . .Mar. 29...Apr. 29...May 29...June 29...July 29...Aug. 29...Sept. 29..Oct. 29.. .Nov. 29..Dec. 29...

Gold in vault.

Millionsof

Rubles.

1,601.11,607.5

! 1,613.51 1,622.5

1,554.21,553.6

1,557.31,569.01,571.31,573.21,574.21,577.21,578.61,585.51,590.81,598.31,608.31,611.7

1916.Jan. 2 9 . . . .Feb. 29... .Mar. 29....Apr. 29....May 29. . . .June 29....July 29. . . .Aug. 29....Sept. 29.. .Oct. 29 . . . .Nov. 29 . . .Dec. 29. . . .

1917.Jan. 29 . . . .Feb. 21 . . . .Mar. 29.. . .Apr. 29.. . .May 29. . . .June 29July 29. . . .Aug. 29... .Sept. 29 . . .Oct. 29 . . . .

1,616.41,620.91,625. 71,628.8

| 1,541.5i 1,540.3i 1,547.4| 1,551.0: 1,553.3

1,558.81,466.81,472.6

1,475.41,474.91,479.51 479.81,479.51,480.91,291.61,297.91 295.21,295.2

Millionsof

Dollars.

824.6827.9831.0835.8800.4800.1

802.0808.0809.2810.2810.7812.3813.0816.5819.3823.1828.3830.0

832.4834.8837.2838.8793.9793.3796.9798.8799.9802.8755.4758.4

759.8759.6761.9762.1761.9762.7665.2668.4667.0667.0


Millionsof

Rubles.

1,634.12,431.42,613.32,706.32,814.72,863.9

2,997.93,076.83,198.33,277.33,416.33,582.63,831.84,092.34,621.85,018.05,164.65,304.6

5,604.55,806.55,935.96,254.16,286.26,443.16,753.16,960.97,304.17,844.98,235.28,591.3

9,204.69,557.2

10,277.811,186.611,765.312,592.013,646.114,676.215,887.018,362.1

Millionsof

Dollars.

841.61,252.21,345.81,393.71,449.61,^74.9

1,543.91,584.61,647.11,687.81,759.41,845.01,973.42,107.52,380.22,584.32,659.82,731.9

2,886.32,990.33,057.03,220.93,237.43,318.23,477.83,584.93,761.64,040.14,241.14,424.5

4,740.44,922.05,293.15,761.16,059.16,484.97,027.77,558.28,181.89,456.5

Treasury short-term bonds.

Millionsof

Rubles.

423.1496.5

859.61,001.01,131.51,453.31,592.01,549.11,847.22,368.72,395.53,140.03,326.93,244.6

3,375.93,781.43,849.43,762.43,520.03,795.23,762.23,894.64,818.55,367.86,073.46,534.1

7,126.57,640.48,339.49,372.99,053.8

10,193.311,162.612,037.4

217.9255.7

442.7515.5582.7748.4819.9797.8951.3

1,219.91,233.71,617.11,713.41,671.0

1,738.61,947.41,982.41,937.61,812.81,954.51,937.52,005.72,481.52,764.43,127.83,365.1

3,670.13,934.84,294.84,827.04,662.75,249.55,748.76,199.3

German Ueichsbank.

[In millions of marks and dollars.]

Gold in vault.

Date.! Millions Millions

of i ofMarks, i Dollars.

1914.July 31 1,253.2Aug. 31 1,556.5Sept. 30 1,716.1Oct. 31 1 1,858.3Nov. 30 1 1,991.3Dec. 31 ; 2,077.2

1915. IJan. 30 ! 2,163.8

2,270.62,337.52,268.52,379.52,387.62,400.7

Feb. 27.Mar. 31.Apr. 30May 31June 30July 31Aug. 31 • 2)410.2Sept.30 j 2,419.4Oct. 30 2,428.8Nov. 30 2,435.3Dec. 31 2,445.2

1916.Jan. 31Feb. 29Mar. 31Apr. 29May 31June 30July 29Aug. 31Sept. 30Oct. 31Nov. 30Dec. 30

1917.Jan. 31Feb. 28Mar. 31Apr. 30May 31June 30July 31Aug. 31Sept. 29Oct. 23

2,453.52,457.12,460.12,461.82,464.42.465.7 !2.467.8 !2,469.0 i2,484.8 :

2,506.12,518.52,520.5

2,524.42,527.32,530.62,532.62,567.12,457.32,402.22,403.02,404.02,404.5

298.3370.4408.4442.3473.9498.1

515.0540.4556.3539.9566.3568.2571.4573.6575.8578.1579.6582.0

583.9584.8585.5585.9586.5586.8587.3587.6591.4596.4599.4

600.8601.5

611.0584.8571.7571.9572.2572.3


Millionsof

Marks.

2,909.44,234.94,490.94,170.84,205.45,045.9

4,658.64,862.75,624.05,310.35,317.95,840.35,538.25,564.36,157.65,946.45,999.46,917.9

6,502.46,554.36,988.1u, u»u. a6,737.67,240.57,024.47,117.97,370.07,260.07,333.78,054.7

7,858.58,107.28,616.08,315.48,285.28,698.78,852.79,337.1

10,204.910,138.7

Millionsof

Dollars.

692.41,007.91,068.8

992.71,000.91,200.9

1,108.71,157.31,338.51,263.91,265.71,390.01,318.11,324.31,465.51,415.21,427.91,646.5

1,547.61,560.01,663.21,593.91,603.51,723.21,671.81,694.11,754.11,727.91,745.41,917.0

1,870.31,929.52,050.61,979.11,971.92,070.32,106.92,222.22,428.82,413.0

Millionsof

Marks.

2,283.34,855.04,786.42,809.12,968.23,959.4

3,826.34,138.26,876.63,807.24,164.44,933.44,801.64,957.07,483.74,225.44,687.55,816.2

5,294.85,797.28,124.45,138.15,507.96,621.56,554.77,090.2

10,769.37,891.48,088.19,619.5

8,190.08,997.9

13,606.08,714.89,364.5

10,962.511,127.811,364.615,632.511.553.1

Discounts andadvances.

Millionsof

Dollars.

543.41,155.51,139.2

668.6706.4942.3

910.7984.8

1,636.6906.1991.1

1,174.11,142.81,179.81,781.11,005.61,115.61,384.3

1,260.21,379.71,933.61,222.91,310.91,575.91,560.01,687.52,563.11,878.21,925.02,289.4

1,949.22,141.53,238.22,074.12,228.82,609.12,648.42,704.83,720.52,749.6


DECEMBER 1,1917. FEDERAL KESERVE BULLETIN. 947

GOLD SETTLEMENT FUND.

Government financing, mainly payments onaccount of subscriptions to the second LibertyLoan and for the most recent issue of UnitedStates certificates of indebtedness, apparentlyaccount for the largely increased volume ofclearings through the gold settlement fund dur-ing the five weeks ending November 22, 1917.Combined clearings and transfers for the weekending November 22 show the record total of$1,092,920,000, total clearings and transfers forthe period under consideration amounting to$4,352,629,000, or over 14.8 per cent of thetotal clearings and transfers through the fundsince its establishment in May, 1915. Changesin the ownership of gold in the fund amountedto only 1.77 per cent of the obligations settled,as against 7.42 per cent for the four weeks end-ing October 18 and 2.04 per cent from May 20,1915, to November 22, 1917.

As may be seen from the table showing thechanges in the ownership of gold, the NewYork, Boston, and Chicago banks report aheavy movement of funds to other FederalReserve districts, mainly to Richmond, At-lanta, and St. Louis. Balances in the fund,

including amounts standing to the credit ofFederal Reserve Agents, show a further increaseand now aggregate $737,612,110, as comparedwith $679,184,260 on October 18 and $272,-320,000 at the beginning of the present calendaryear.

Below are given figures showing changes inthe fund between October 18 and November 22,inclusive:

Amounts of clearings and transfers, Federal Reserve Banks,from Oct. 25 to Nov. 22* 19T7., inclusive.

[In thousands of dollars.]

! Total; clearings.

jSettlement of— '

Oct. 25,1917 ;Nov. 1,1917 i

i Nov.8,1917 1i Nov. 15,1917.. i

Nov. 22,1917 i 979',

752,087695,925685,695

Total I 3,811,489Previously reported for 1917.... I 16,603,006

Total since Jan. 1,1917.... 20,414,495Total transfers Jan. 1, 1917, to

date 2,249,505.5Total for 1916, including trans- \

fers i 5,633,966Total for 1915, including trans-

fers ! 1,052,649

Total clearings and trans- !fers, May 20, 1915, to \Nov. 22,1917 29,350,615.5

Balancesadjusted.

84,24861,59288,42545,92396,890

377,0781,509,004

Transfers.

83,900120,500152,25071,490113,000

541,1401,708,365.5

2,249,505.5

Changes in ovmership of gold.


Federal Reserve Bank of—

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallas

Total to Oct. 18,1917.

Decrease.

§576,422

San Francisco.

Total . . . . 576,422

Increase.

.1540,407

67,49993,99326,62636,84370,03319,51021,31160,942.541,544.597,713

From Oct. 18 to Nov. 22,1917, inclusive.

Balanceto creditOct. 18,

1917, plusnet de-

posits ofgold sincethat date.

821,97952,201 I26,962 149,809.6 j28,701.5 I

1-1,636 i94,472.66 j10,611 j18,198 j39,912.35 j9,901 I

24,787

576,422 j 375,899.11

1 Debit,

Balance,Nov. 22,

1917.

$1628,50733,51158,485.644,371.513,54574,938.6626,14015,89430,217.3519,20431,069

375,899.11

Decrease.

$21,96323,694

19,534

77,190

Increase.

Total changes fromMay 20,1915, to Nov.22, 1917.

Increase.

$600,116$6,5498,676 !

15,670 !

15,181 i

"i5,"529"!!".!!".!!!!I!!

9,3036,282 i

77,190 ! 600,116

$18,444'

74,048102,66942,29652,02450,49935,03919,00751,247.550,847.5103,995

600,116


948 FEDERAL RESERVE BULLETIN. D E C E M B E R 1,1917.

Gold settlement fund—Summary of transactions from Oct. 18 to Nov. 22, 1917, inclusive.

[In thousands of dollars.]_

Federal Reserve Bank of—j Balance! last state-I mentf Oct.| 18,1917.

Boston I $17,779New York ! 46,601

Gold.

PhiladelphiaCleveland. . .Richmond.. .AtlantaChicagoSt.sLouisMinneapolis.Kansas CityDallas ! 14,441.4San Francisco

41,94757,672.431,021.63,793.25

63,381.18 j20,958 !9,908 i

40,524.45

Total | 377,257.26

With-drawn.

87,00010,00059,95018,351.814,702.113,05053,010.512,7509,0007,5078,740.4

18,985

233,046.8

Deposited, i Debit.

$11,20015,60044,96510,48912,3827,620.7584,1022,40517,2906,894.94,20014,540

$19,000121,85079,00054,00046,0004,00036,60015,00027,39049,00024,30065,000

231,688.65 j 541,140

$412,000

6,0007,40031,00010,000

3,3908,000

63,350

541,140

Weekly statements from Oct. 18 to Nov. 15,1917.

Netcredits.

$12,671313,844

2,954

5,268 ;

$259,8761,390,208357,108279,308163,90994,401510,741241,367116,965150,02585,453162,068

$256,9131,076,364442,717341,984219,579106,182496,807261,896142,051185,940111,056170,000

Nov. 22,1917, bal-ance in

fund afterclose of

business,

$9,708

377,078 3,811,489 ; 3,811,489

85,54962,67655,67013,46525,92521,32725,08638,86925,60313,200

377,078

S1628,50733,51158,485.644,371.513,54574,938.8626,14015,89430,217.3519,20431,069

375,899.11

Federal Reserve Agents' fund—Summary of transactions from Oct. 18 to Nov. 22, 1917.


!

Federal Reserve Agent at—

Boston $2,000Philadelphia 32,939Cleveland 20,000Richmond 24,800Atlanta .Chicago..,St. Louis.,

Balancelast

statemcnt,

Oct. 18,1917.

31,47090,35822,460 i

Goldwith-

drawn.

$32,265300

*""6."456'51', 889

1,405

Goldde-

posited.

$53,95010,3006,70013,05049,01012,750

Balance,Nov. 22,

1917.

$2,00054,62430,00031,50038,07087,47933,805

|

Federal Reserve Agent at— |

Balancelast

statement.

Oct. 18,1917.

!

Goldwith-

drawn.

Minneapolis j $18,500 i $8,000KansasCity i 23,360: 500Dallas j 9,674: 2-300San Francisco i 26,366 14,850

Total | 301.927 i 117,959

Goldde-

posited.

$4,0005,5003,500

18.985

177, 745

Balance,Nov. 22,

1917.

$14,50028,36010,87430;501

361, 713

Operation of the Federal Reserve clearing system,, Oct. 16 to Nov. 15, 1917.

BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis.. .KansasCi ty . . .Dallas ."San Francisco.

Items drawn on ibanks in Fed- |eral Reserve city j

(daily average). !

Items drawn onbanks in dis-

trict outsideFederal Re-serve city

(daily average).

Items drawn onbanks in otherdistricts (daily

average).

Num- !! bor. ! Amount. Num-

ber.

2,643!5,350]

l'2531,4218,4802,167i2,599i2,194!1,205,3,874

$12,368,30472.910,887j16,616,966!4,205,9774,302,9082,096,599

21,812.00011,556,0216,822,1416,569,8281,432,2525,858,890

Totals:Oct. 16 to Nov. 15, 1917.Sept. 16 to Oct. 15,1917.Aug. 16 to Sept. 15, 1917July 16 to Aug. 15,1917.June 16 to July 15,1917.May 16 to June 15,1917.Apr. 16 to May 15,1917.Mar. 16 to Apr. 15,1917.

47,57440,59136,30636,72738,47637,89833,767|31,162j

166,552,773128,271,466100,331,69498,075.919

109,722,25697,322,88387,370,85960,288,002

37,33138,59219,47719,16720,85011,31818,64110,97913,27416,59913,13713,358

232,723212,935182,191175,625182,622179.193171,093168,607

$4,922,78515,910,2593,151,195

10,337,1576,978,7922,904,0344,515,0003,009,2311,410,5166,113,4692,477,4202,566,352

61,298.21047,476.20441,323,62140,353,27841,004.72038,599,46136,473,16332,666,959

Total (exclusiveof items drawnon Treasurer ofUnited States(daily average).

Amount. ^ " P Amount, ûrn- Amount

3,805;21,870i10,071J1,401|2,195J1,31111,935!

228!

911j776551

$6,526,28712.636; 67311.910,9332,386,4005,071,4312,192,344

594,0002,390,8942.035,5275,351,099!1.619,174!

375,065;

43,77965,81244,40622,09824,29814,05029,05613,37416.784j19; 569!14,89317,571

$23,817,376101,457,8193li 879,09416; 929,53416,353.1317,192; 977

26,921,00016,956,146*10,268,184!18,034,3965,528,846!8,800,307i

Items drawn onTreasurer of

United States(daily average).

2,01815,8871,695'326404

V267

1,184224

1,270

45,39340,21632,56431,27333,941

53,089,8274498458144,984,58140648168,9,0

46,762.69838314; 393

325,« , ^ x , W x 293,742!40,648,168' 251,061!37,981,022 243,625!

" 255,039]250,2411238,288231,77732,008j 34,693,542

j

I283.938.810:220,732,251!182,303,483!176,410,219!197,489,6741174; 238,737!160,680,956!127.618,503!

30,42626,79723,49219,53319,10016.34415,92512,582

Num-ber ofmem-

berbanks

indis-trict

Sl,640.098::6.610.037!1,543,442!

237,448j183,541|490,051i

1,424,000!884,942j64,150

748, OOOi116; 968|

3.554,297!

397651628756526431

1,066477768955633538

17,496,97413.518,566li; 006,5159,701,56911,637.8994,414,5083,597,8652,643.408

7,7,7477,718. . .

7.7,6517,6347.625

Num-ber oi;non-mem-

berbankson parlist.

241345298565265337

2,2211,0051,0241.525220

1,163

9,2109,052

8,8058,7898.9268; 607


DECEMBER 1,1917. PEDEEAL BESEKVE BULLETIN* 949

INFORMAL RULINGS OF THE BOARD.Below are reproduced letters sent out from

time to time over the signatures of the officersor members of the Federal Reserve Boardwhich contain information believed to be ofgeneral interest to Federal Reserve Banks andmember banks of the system:

Drafts Drawn "On or Before 90 Days After Sight."(To a Federal Reserve Bank.)

I have your letter of November 2, inclosinga letter from the Bank in regard to billsdrawn "on or before 90 days after sight."

I agree with you that we should not encour-age or countenance this practice. If the bankaccepts, it ought to accept for a definite period,otherwise the acceptance becomes in effect alimited demand note, or rather a certifiedcheck to be presented within a limited periodof time. If an acceptance of this kindpassed into the hands of a third party (otherthan the acceptor or the drawer), this thirdparty could then according to his own require-ments present this note for payment on any dayhe pleased, and probably the acceptor could notbe put in funds in time. There may be condi-tions where the drawer—the goods being stillin course of transportation—would not be ina position to cover the acceptor, even whenrequested by the latter to do so.

All that is required, I believe, is an under-standing with the Federal Reserve Bank thatit woula permit the acceptor to take up itsacceptance before maturity under rebate, andif a Federal Reserve Bank wants to encouragehis business there is no reason why the FederalReserve Bank could not make such an ar-rangement. But any such agreement wouldbe a voluntary one between a holder of theacceptance and the acceptor and could notaffect a fourth party who might happen tobecome the holder of the acceptance.

NOVEMBER 5, 1917.

Rediscount of Participation Certificate.(To a Federal Reserve Bank.)

Your letter of October 24 raises the questionwhether a Federal Reserve Bank may redis-count a certificate of participation in a note,such note itself being eligible for rediscount.

The Board, after consultation with counsel,is of the opinion that there is no provision inthe Federal Reserve Act which authorizes aFederal Reserve Bank to rediscount a partici-pation certificate, because even though theoriginal note is eligible for rediscount, a partici-pation certificate nevertheless is nothing morethan the evidence of an equitable interest inthat original note, and does not in any way repre-sent a legal claim against the maker of the note.Should a Federal Reserve Bank rediscount aparticipation certificate, there would be nothingto prevent the holder or trustee of the originalnote from selling or otherwise disposing of it toa bona fide holder for value, in which event theFederal Reserve Bank which had rediscountedthe participation certificate would have noclaim whatever against the maker of the origi-nal note, and no right to its proceeds against aholder in good faith.

Entirely apart from the risk involved, it doesnot seem that those sections of the Federal Re-serve Act which authorizes the rediscount ofnotes, drafts, or bills of exchange can possiblybe construed as authorizing the rediscount of an

[uitable interest in such notes, drafts, or bills

NOVEMBER 1, 1917.

Public-Service Corporation Paper.

(To a Federal Reserve Agent.)

Receipt is acknowledged of your letter of the14th instant, asking for the views of the Boardas to the eligibility of notes of certain public-service corporations.

The Board wrote some time ago, either to youor to the governor of your bank, that this is amatter which it could not cover by a generalruling. I t seems to be a matter for determina-tion by the Federal Reserve Bank after an an-alysis of the statements rendered. If it is clearthat the notes can not be liquidated within ashort time out of current assets accruingthrough ordinary earnings, and that the borrow-ing is really for capital account, the notes shouldnot be regarded as eligible. But, on the otherhand, if the note is given in payment of mate-rial or supplies which are necessary to enablethe public-service corporation to furnish goods(light, heat, or power) which it sells the public,and for which the public will pay at the end of


950 FEDERAL KESERVE BULLETIN. DfiCEMBSll 1, 1917.

30 or 60 day periods, the note might be re-garded as eligible, provided the statement ofthe corporation shows a satisfactory proportionof cash and accounts receivable against currentliabilities. The cardinal test for eligibility isundoubtedly the ability of the public-servicecorporation to p&y the obligation within 90days out of collections accruing from currentearnings.

NOVEMBER 17, 1917,

Tax on Promissory Notes.

(To Federal Reserve Banks.)

In December, 1914, Hon. Wm. H. Osborne,-who was then the Commissioner of InternalRevenue, advised the Board that the followingrulings had been made by his bureau:

i'The rediscount of a note by a bank doesnot involve any tax liability.

"A promissory note payable on demand isnot held to be renewed and subject to tax un-der the provisions of the internal revenueact of October 22, 1914, when accrued interestthereon is paid.

"A promissory note may have interest pay-ments indorsed thereon without becomingsubject to tax if the life of the note is not con-tingent upon payment of the interest and isnot extended to a certain future date.

"A promissory note given for a fixed periodwhich, when due, is allowed to run withoutsuit, is not held to be renewed upon paymentof interest. This is looked upon as a forbear-ance and not as a renewal; the holder not re-linquishing his right for any stated period, and,therefore, no stamp is required in such cases.7'

The present commissioner, Hon. Daniel C.Roper, advises the Board that these rulings aredeemed to be consistent with proper enforce-ment of the existing law. This information isgiven you in order that it may be transmittedto your member banks in such manner as maybe deemed expedient.

NOVEMBER 28, 1917.

"Are acceptances originating inside but pay-able outside subject to stamp taxes?'7

I beg to advise that the matter was referredto the Board's counsel for a ruling, which hehas rendered as follows:

" In my opinion questions should be answeredin the affirmative."

In support of his decision, counsel cites sec-tions 800, 801, and 802 of the act approvedOctober 3, 1917.

NOVEMBER 13, 1917.

Eligibility of Mutual Savings Bank.(To an individual.)

Replying to your letter of the 25th instant,I would state that you are correct in yourunderstanding that a mutual savings bankwithout capital stock or stockholders is noteligible, under the law, for membership in theFederal Reserve system.

OCTOBEK 30, 1917.

Stamp Tax on Acceptances.

(To a Federal Reserve agent.)

With reference to your telegram of Novem- jber 8, reading as follows:

"Are acceptances originating outside butpayable inside this country subject to stamptaxes ?

| State Bank Membership.

I (To a State bank.)

i I have received } our letter of the 25thinstant, in which you refer to the restrictionswhich disqualify your bank from membershipin the Federal Reserve system. From whatyou say, however, I am not at all sure thatyour investments are of such a character as todisqualify you, for the Federal Reserve Acthas been amended so as to allow State banksto become members and retain, at the sametime, all of their charter and statutory privi-leges under their State laws. If you are au-thorized under your law to invest in real estatemortgages, the fact that you have large in-vestments of this kind would not bar yourbank from membership in the Federal Reservesystem. Of course, if you should wish torediscount with the Federal Reserve Bankyou would be obliged to offer eligible paper,that is, commercial paper having not longerthan 90 days to run, or agricultural paper orpaper based on live stock maturing within sixmonths.

OCTOBER 30, 1917.

(To a Federal Reserve Agent.)

I have received your letter of the 28th instantin reference to the inquiry of , as towhether his institution can become a member


DECEMBER 1, 1917. FEDERAL BESEEVE BULLETIN. 951

of the Federal Reserve system as far as the re-serve feature goes, without becoming amenableto all of the acts. I am inclosing for Mr.

—- information a copy of the Federal Re-serve Act, as amended, and would refer you tosection 9 which sets forth fully the terms, con-ditions, regulations, restrictions, and limita-tions of State bank membership. I think youwill agree with me that the terms prescribed bythe act are liberal enough, and that the Boardcan not, if it would, waive its right to makeexaminations, although it may not choose toexercise it, nor can it waive any of the otherprovisions and penalties prescribed in the sec-tion.

If admitted as a member, the wouldnot be disturbed in the enjoyment of the privi-leges or the exercise of the powers given by itscharter, excepting in so far as these would con-flict with the provisions of the Federal ReserveAct.

OCTOBER 30, 1917.

Method of Computing Discount.(To a member bank.)

In reply to your letter of inquiry dated Sep-tember 7 there is forwarded herewith a tabu-lated statement showing the methods used byeach of the Federal Reserve Banks in comput-ing discount.

Aside from the fact that New York andBoston Federal Reserve Banks figure discounton a 365-day basis while all the other FederalReserve Banks use 360 days, the methods usedby the Federal Reserve Banks do not vary.Discount is computed on the actual number ofdays the paper has to run, the date of paymentof course varying in different States in accord-ance with the laws regarding holidays in forcein the different jurisdictions.

Differences in the number of days and theamounts of discount shown in the above tableresult from the fact that a number of banksfailed to take into consideration the fact thatMarch 3 was a Saturday, when notes are notpayable in some States, that July 1, 1917, fellon Sunday, also from the use of the 365-daybasis by the New York and Boston banksInstead of the 360-day basis, used by the otherbanks.

OCTOBER 29, 1917.

Deposits With Nonmember Banks.

(To an individual.)

Receipt is acknowledged of your letter ofOctober 30, and in reply you are informedthat section 19 of the Federal Reserve Actprovides that—

"No member bank shall keep on depositwith any State bank or trust company whichis not a member bank a sum in excess of 10per cent of its own paid-up capital stock andsurplus."

This provision was clearly intended to applyto State banks and trust companies which be-come members of the system as well as tonational banks. If there could have been anydoubt on this subject it is removed by thatpart of section 19 as amended, which pro-vides that:$%." Banks becoming members of the FederalReserve system under authority of this sec-tion shall be subject to the provisions of thissection and to those of this act which relatespecifically to member banks."

NOVEMBER 3, 1917.

War Savings Certificates as Christmas Gifts.

(To a Federal Reserve Bank.)

Referring further to your letter of October29, in which you inclose a letter from ,dated October 27, with reference to the use ofgold as Christmas holiday gifts, I beg to adviseyou that at a meeting of the Federal ReserveBoard, held November 18, the committee towhich this matter had been referred reportedthat—«* * * iT1 yiew of the general opinion that

fold should be concentrated, the attention ofankers, employers of labor, and of individ-

uals should be directed to the new war savingscertificate plan as being an entirely suitableand patriotic method of handling the matter.These war savings stamps will be on sale byDecember 1, descriptive literature is now onthe press, and the Treasury circular will beissued within a few days/7

This report was approved by the Board.NOVEMBER 19, 1917.


952 FEDERAL RESERVE BULLETIN". DECEMBER 1,1917.

LAW DEPARTMENT.The following opinions of counsel have been

authorized for publication by the Board sincethe last edition of the Bulletin:Real Estate Loans by Foreign Branches.

A branch bank of a national bank established in a foreigncountry, under authority of section 25, may make loanson real estate located within 100 miles of the branch, pro-vided such loans conform in all other respects to the pro-visions of section 24.

NOVEMBER, 17, 1917.SIR: This office has been requested to give

consideration to the question of the right of abranch bank of a national bank establishedin a foreign country, under authority of section25 of the Federal Reserve Act, to make loans onreal estate.

Section 25 authorizes national banking asso-ciations possessing a capital and surplus of$1,000,000 or more, under regulations pre-scribed by the Federal Reserve Board—to establish branches in foreign countries ordependencies or insular possessions of theUnited States for the furtherance of the for-eign commerce of the United States, and toact if required to do so as fiscal agents of theUnited States.'

The act does not undertake to prescribe thefunctions of branches. It is to be assumedthat national banks are to exercise throughtheir branches the same corporate powers thatare exercised by the parent bank, subject, ofcourse, to such regulations of the banking busi-ness as may be contained in the laws of theforeign country in which the branch is located.

While the branch has no separate corporateentity and obligations assumed by it becomeobligations of the parent bank, it is to allintents and purposes a separate organizationin the exercise of its functions. It is in thisrespect that it differs from an agency.

The Attorney General, in an opinion pub-lished in the " Opinions of the Attorney Gen-eral 29, 81," discusses at some length the differ-ence between an agency and a branch bank.In the course of his opinion he says:

"An agency requires no division of the capitalstock, and the details of the business are fewand* are easily supervised by the officers of thebank, while a branch requires, in effect, a divi-sion of the capital, the working force is organ-ized, and the business conducted as if it werea separate organization, and it competes in allbranches of the banking business with otherbanks in that locality the same as if it were anindependent institution." (Citing certain au-thorities in suppport of this proposition.)

This would seem to be particularly true of abranch operating in a foreign country. Such abranch must necessarily exercise the functionspossessed by the parent bank in competitionwith other local banking institutions and if itis to meet such competition should not berestricted in its operations to any greaterextent than the parent bank.

Section 24 of the Federal Reserve act pro-vides that—

Any national banking association not situ-ated in a central reserve city may make loanssecured by improved and unencumbered farmland situated within its Federal Reserve districtor within a radius of 100 miles of the place inwhich such bank is located, irrespective ofdistrict lines, and may also make loans securedby improved and unencumbered real estatelocated within 100 miles of the place in whichsuch bank is located, irrespective of districtlines; but no loan made upon the secur-ity of such farm land shall be made for alonger time than five years, and no loan madeupon the security of such real estate as dis-tinguished from farm land shall be made for alonger time than one year nor shall the amountof any such loan, whether upon such farmland or upon such real estate, exceed 50 percent of the actual value of the propertyoffered as security. Any such bank maymake such loans, whether secured by suchfarm land or such real estate, in an aggregatesum equal to 25 per cent of its capital andsurplus or to one-third of its time depositsand such banks may continue hereafter asheretofore to receive time deposits and topay interest on the same.

The Federal Reserve Board shall have powerfrom time to time to add to the list of cities in



which national banks shall not be permitted tomake loans secured upon real estate in themanner described in this section.

It is manifest that a branch of a nationalbank located in a foreign country can not besituated within an}? Federal Reserve district,all of which districts are included within thegeographical limits of the United States. Landaccepted as security for a loan could not, there-fore, be located in the same Federal Reservedistrict as the branch bank. It could, however,be located within 100 miles of the branch bank,and the question arises whether a branch maymake loans on real estate located within 100miles of its place of business if such loans com-ply in other respects with the provisions ofsection 24.

The question arises in connection with abranch established on the Isthmus of Panamaby a national bank located in Washington,which is not a central reserve city. The man-ager of the branch bank makes the followingstatement of local conditions:

There are a great many people here of per-fectly sound financial standing, but there arevery few stocks, bonds, or other negotiablesecurities held by the moneyed classes.

• The ordinary procedure of a successful mer-chant here is to put the bulk of his earningsinto improved real estate. These urban, prop-erties have so high a rate of yield that ordinarybonds, etc., can not compete with them asattractive investments. Therefore in. manycases when we make a loan if we wish, actuallyto hold more than the names of the partieswho sign the document we are forced to takea mortgage on some of their property.

It thus appears that unless this branch ispermitted to accept the security of real estateon loans made, it will be forced to make onlyunsecured loans if it is to continue business inthe country in question.

It is hardly probable that Congress intendedto require branches of national banks toengage in the banking business in competitionwith local foreign banks under restrictionswhich would prohibit such branches fromobtaining the benefit of local securities, andwhile the branch could not exercise any cor-

26416—17 6

porate powers not possessed by the parentbank and must confine its loans on real estateto those specifically authorized by section 24,it is the opinion of this office that such branchesmay exercise any of the functions or corporatepowers possessed by the parent bank subjectonly to the restrictions that are contained inthe National Bank Act and the Federal Re-serve Act, and subject, of course, to the lawsof the country in which the branch is locatedwhich regulate the banking business.

In this view, section 24 should be construedas authorizing the branch bank to make loanson real estate located within 100 miles of the510.11011, provided such loans conform in allother respects to the provisions of section 24.

Respectfully,M. C. ELLIOTT, Counsel.

To Hon. W. P. G. HAHDING,Governor Federal Reserve Board.

for Membership by Sfcit&

A State bank may make application for membership Inthe Federal 'Reserve system as soon as it lias been granteda charter and is authorized to commence business.

NOVEMBER 10, 1917.| SIB: The accompanying letter raises thej question whether a State bank or trust com-pany may apply for membership in. the FederalReserve system after organization but "before

| the applying bank has actually commencedj business.

Section 9 of the Federal Reserve Act providesthat—

Any bank incorporated by special law of anyState or organized under the general laws ofany State of the United States, desiring tobecome a member of the Federal Reserve sys-tem, may make application to the FederalReserve Board, uncler such rules and regula-tions as it may prescribe, for the right to sub-scribe to the stock of the Federal Reserve Bank

I organized within the district in which theI applying bank is located. Such application| shall be for the same amount of stock that theapplying bank would be required to subscribeto as a national bank. The Federal Reserve


954 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917,

Board, subject to such conditions as it mayprescribe, may permit the applying bank tobecome a stockholder of such Federal ReserveBank.

Under this language a bank would clearlybe entitled to make an application as soon asit has been granted a charter and is authorizedto commence business. This section furtherprovides that—

In acting upon such application the FederalReserve Board shall consider the financial con-dition of the applying bank, the general char-acter of its management, and whether or notthe corporate powers exercised are consistentwith the purposes of this act.

This might seem to indicate that Congressintended to permit only those banks to applyfor membership which are actively engaged inexercising their corporate powers. The pur-pose of this provision, however, was mani-festly to enable the Board to determine whetherthe functions of the applying bank are bankingfunctions or whether it is engaged in a businesswhich is inconsistent with the provisions of theFederal Reserve Act. It presupposes that theapplying bank possesses corporate powers, theexercise of which would not be consistent withthe purposes of the act. If, therefore, thecharter of the applying bank does not containcorporate powers which should not be exer-cised as a member bank, there would seem tobe no reason why the Board should not author-ize its membership. In any event, there wouldseem to be no reason why a bank incorporatedunder a State law should not file its applica-tion with the Federal Reserve Board for suchaction as it may deem necessary.


To Hon. W. P. G. HARDING,Governor Federal Reserve Board.

Rediscount of Bank's Note given for Fluids to ReplaceDeposits Withdrawn to Purchase Liberty Bonds.

A note executed by Bank "A" and discounted by Bank" B , " the proceeds of which wore used to replace fundswithdrawn by customers to purchase liberty bonds, is

| not eligible for rediscount by a Federal Reserve Bank,since the proceeds were not used for an agricultural, in-dustrial, or commercial purpose, or for the purchase ofnotes or bonds of the United States.

NOVEMBER 1, 1917.

SIB: The attached letter presents for consid-eration the following case:

Bank "A" finds it necessary, on account ofheavy withdrawals made to pay for Libertybonds, to borrow on its note. It executes apromissory note secured by stocks and bondsother than bonds of the United States and dis-counts this note with Bank "B . " Bank " B "subsequently offers the note of Bank " A " tothe Federal .Reserve Bank for rediscount.You have asked whether in the opinion of thisoffice this note can be considered as eligible onthe ground that the proceeds of the originaldiscount were used to replace deposits with-drawn from Bank " A " by customers purchas-ing Liberty bonds.

Under section 13 of the Federal. Reserve Actthe eligibility of a note for rediscount is deter-mined by the use of the funds derived from theoriginal negotiation of the note. The collateralsecurity of the note may indicate its use, but theform of collateral is otherwise immaterial. Inother words, a note might be secured by rail-road stocks and bonds, but the proceeds mightbe used for an agricultural, industrial, or acommercial purpose, in which event the notewould be eligible for rediscount, although itwould not be if the proceeds were used to pur-chase or carry the railroad stocks and bonds.

Applying this test to the case under consid-eration, it seems clear that the proceeds of thenote executed by Bank " A " and discounted byBank "B" were not used for an agricultural,industrial, or commercial purpose. They be-came a part of the general assets of the bank,having been borrowed to replace deposits with-drawn, and presumably were to be used to paydepositors or to make loans to customers. Ifit could be shown or assumed that these fundswere used by the bank to purchase or carryUnited States bonds, the note in question wouldbe eligible for rediscount; but since there is no



justification for such an assumption the notedoes not, in the opinion of this office, comewithin the classification of eligible paper.


To Hon. W. P. G. HABDING,

Governor, Federal Reserve Board.

Deduction of Federal Reserve Bank Stock irons TaxAssessments Levied on Shareholders of NationalBanks.

The following opinion rendered recently byJudge Sater of the United States DistrictCourt, Southern District of Ohio, WesternDivision, holds that Federal Reserve Bankstock which is held by a national bank cannot be deducted by such national bank inmaking a. return of the value of its own stockfor the purposes of taxation.

[United States District Court, Southern District of Ohio, WesternDivision. First National Bank of Cincinnati, Ohio, Plaintiff, v. PeterW. Durr, auditor of Hamilton County, Ohio, ot al., Defendants. No.86. On motion to dismiss.]

Sater, District Judge: The motion to dis-miss the bill operates as a demurrer. It-admits that, after the plaintiffs cashier hadmade the return for taxation purposes ofplaintiff's resources and liabilities, with astatement of the names and residences of itsstockholders, the number of shares held byeach and the par value of each share, thedefendant auditor delivered to his codefehdantas county treasurer the tax duplicate authoriz-ing him to collect, as in the Ohio statutesprovided, the taxes charged against the ownersof the shares of stock in the plaintiff bank,which taxes so charged include the sum of$3,339.36, assessed on acount of the State,county and municipal taxes claimed to be dueon account of the plaintiff's ownership of$4,320 shares of stock held and owned by it inthe Federal Reserve Bank of the districtwithin which Cincinnati is located. Theplaintiff claims that the provisions of section5219. R. S. U. S. (Act June 3, 1864. see. 41,13 Stat. I l l , as amended Feb. 10, 1868, 15

Stat. 34) are so far repealed by section 26 ofthe Federal Reserve Act (Act Dec. 23, 1913,38 Stat. 251), that the shareholders in theplaintiff bank are exempt from taxation byvirtue of section 7 of the last-named act on so

| much of its capital and surplus as is investedin stock of the Federal Reserve Bank. Atemporary injunction issued when the bill wasfiled.

Under section 5219, the States are empoweredto tax the shares of stock of national banks byincluding them in the valuation of the personalproperty of the owners in the assessment; oftaxes. The only restriction on this power oftaxation is that taxation thereon shall not beany greater than is assessed on other moniedcapital in the hands of individual citizens ofthe State imposing the tax, and that the sharesof any national bank owned by nonresidentsof any State shall be taxed in the city or townwhere the bank is located and not elsewhere.Real property of national banks is by thesame section made subject to local taxation tothe same extent as other real property.

The Legislature of Ohio, in pursuance of theauthority conferred by section 5219, hasdeclared that all the shares of stockholders inan incorporated State or national bank shallbe listed at their true value in money and shallbe taxed only in the city, ward or villagewithin which the bank is located. Section5408, Ohio G. C. A national bank is requiredto keep at its place of business a full and correctlist of the names and residences of its stock-holders and the number of shares held by each,which list shall at all times during businesshours be open to the inspection of local taxingofficers. Section 5410. The cashier of suchbank is required to make a return to the countyauditor of the bank's resources and liabilities,with a full statement of the names and resi-dences of its stockholders, the number ofshares held by each and the par value of eachshare. Section 5411. The auditor then deter-mines the value of the shares of such bank.Section 5412. The taxes assessed on theshares or their par value are made a lien thereon


958 FEDERAL BESEEVB BULLETIN. DECEMBER 1,1917.

from the first Monday of May in each yearuntil they are paid. The duty is imposed onthe bank to collect the taxes due upon itsshares of stock from the several owners of theshares and to pay the same to the countytreasurer. Failure to do so is attended with apenalty. Section 5672. The bank, havingpaid the tax assessed upon the shares held byits stockholders, is authorized to deduct theamount so paid from the dividends that aredue or that may become due on such shares,and is given a lien upon the same and on allfunds in its possession belonging to its share-holders or which may at any time come intoits possession, for its reimbursement for thetaxes so paid on "account of its several share-holders, with legal interest, which lien may beenforced in an appropriate manner.

Section 2 of the Federal Reserve Act requiredevery national bank to signify in writing within60 days after the passage of the act its accept-ance of its terms and provisions. Any bankfailing for one year to become a member ofthe Federal Reserve Bank forfeited all of itsrights, privileges and franchises. The amountof each national bank's subscription to thecapital stock of the Federal Reserve Bank inthe district in which such national bank issituated must be 6 per cent, of its paid up capitalstock and surplus. For the subscription thusmade, the national bank becomes a shareholderor stockholder in the Federal Reserve Bank,but may not transferor hypothecate its shares,each of which is of the face value of $ 100. (Sec.3.) Section 7 provides that—

"'Federal Reserve Banks, including the capi-tal stock and surplus therein, and the incomederived therefrom, shall be exempt fromFederal, State and local taxation, except taxesupon real estate.77

In Tennessee v. Whitworth, 117 U. S. 129,136, Mr. Chief Justice Waite, in speaking oftaxable corporate elements, said:

" In corporations four elements of taxablevalue are sometimes found: 1, franchises;2, capital stock in the hands of the corporation;3, corporate property; and, 4, the shares of thecapital stock in the hands of the individual

stockholders. Each of these is, under somecircumstances, an appropriate subject of taxa-tion.77

By the unambiguous provisions of Section5219, the power of the States to tax nationalbanks is confined to a taxation of the fourthof the above elements—i. e., the shares of stockin the names of the shareholders, and to anassessment of the real estate of the bank.Owensboro National Bank v. Owensboro, 173U. S. 664, 669; People v. Weaver, 100 U. S.539, 549; State, Northward National Bank v.City of Newark, 39 N. J. L. 380, 383; Flint v.Board of Aldermen, 99 Mass. 141, 145; FirstNational Bank of Richmond v. City of Rich-mond, 39 Fed. Rep. 309.

When the plaintiff subscribed to the capitalstock of the Federal Reserve Bank, it perma-nently invested a portion of its capital and, itwould seem, of its surplus also. Capital isthus defined in Bailey v. Clark, 88 U. S. 284,286:

"When used with respect to the property ofa corporation or association, the term has asettled meaning; it applies only to the propertyor means contributed by the stockholders asthe fund or basis for the business or enterprisefor which the corporation or association wasformed.77

Capital or capital stock (the terms beingoften used synonymously) is not the samething as the shares of capital stock. InFarrington v. Tennessee, 95 U. S. 679, 687(quoted with approval in Powers v. Detroit &Grand Haven Ry., 201 U. S. 543, 560), it issaid:

"The capital stock and the shares of thecapital stock are distinct things. The capitalstock is the money paid or authorized or re-quired to be paid in as the basis of the businessof the bank and the means of conducting itsoperations. * * * The capital stock andthe shares may both be taxed, and it is notdouble taxation. The bank may be requiredto pay the tax out of its corporate funds, or beauthorized to deduct the amount paid for eachstockholder out of his dividends.'7

The Federal Reserve Act recognizes andmaintains the distinction between capital stock



and the shares of capital stock. See Sees. 5 to8, both inclusive. I t will be further noted thatthe term "capital stock/' when used in refer-ring to a national hank, has the same meaningas when applied to a Federal Reserve Bank,The exemption from. Federal, State and localtaxation, given by section 7 of such act, byexpress language extends only to the banksorganized under that act,' 'including the capitalstock (capital) and surplus therein, and theincome derived therefrom/' The correct in-terpretation of such an exempting clause isgathered from Railroad Companies v. Gaines,97 U. S. 697, 707, in which it was said:

"In general, a,n exemption of capital stock,'without more, may, with great propriety, beconsidered, under ordinary circumstances, asexempting that which, in the legitimate opera-tion of the corporation, conies fco represent thecapital."

The exemption provided in section 7 does notextend to national banks organized under thenational banking law. Had Congress intendedthat their capital stock should be relieved fromtaxation, it would have said so.

The stock purchased by the plaintiff in theFederal Reserve Bank is but a nontaxable in-vestment of a part of its capital and surplus.As said in First National Bank v. Albright, 208IT. S. 548,553:

"The law does not consider the nature of abank's investments not taxed in fixing thevalue of its stock. Palmer v. McMahon, 133U. S. 660."

Whatever value the shares issued by theplaintiff national bank possess, they are tothat extent taxable in the hands of theirowners and holders. Rosenblatt v. Johnson,104 IT. S. 462; City, etc., of San Francisco v.

Crocker-Woolworth National Bank, 92 Fed.Rep. 273. The courts have repeatedly ruledthat in fixing the value of the shares of stockof national banks for taxing purposes, the valuedue to the bank's ownership of nontaxableUnited States bonds as a part of its assets mustbe included. See, for instance, Cleveland TrustCo. v. Landers, 184, XL S, 111: Hager v.American National Bank, 159 Fed. Rep. 896,401. C. C. A.,'6; Van Allen v. Assessors, 3 Wall.573; People"?;. Commissioners, 4 Wall at p. 258 ;National Bank v. Commonwealth, 9 Wall, atp* 559; Home Savings Bank v. Des Moines, 205U. S. at p. 518, 519. The same rule applies tonontaxable stock held by the plaintiff in theFederal Reserve Bank.

The declaration in section 26 of the Federal| Reserve A.ct that all provisions of law incon-| sistent with or superseded by any of the pro-visions of such act are to that extent repealed,has no application to such a situation as ispresented by the bill, for the reason that theexempting clause found in section 7 does notrelieve or purport to relieve national banks,their capital and surplus from the taxationauthorized by Section 5219, and is therefore notinconsistent with and does not supersede theprovisions, or any of them, of such last namedsection.

The temporary injunction is dissolved andthe motion to dismiss the bill is sustained. Thesame ruling may be taken in cases Nos. 87, 88and 89, if the issues involved in those respectivecases are the same as in this, which I under-stand to be the fact.

Other questions have been raised by thedefense, but their consideration is not deemednecessary.


958 FEDEBAL EESERVE BULLETIN. DEC EM BEE 1,1917.

SUMMARY OP BUSINESS CONDITIONS NOVEMBER 23,1917.

General business

Crops:Condition

District No. l-~Boston.

District No. 2—New York.

Outlookindustries of the dis-

trict.Construction, build-

ing, and engineer-ing.

Foreign trade

Bank clearingsMoney ratesRailroad, post office,

and other receipts.Labor conditions

Outlook..

Remarks.

Trend toward Gov- j Very activeernment work. |

Yield reported good

Busy Very busy.|

Mostly on Govern- j Very quiet,ment work. !

District No. 3™Philadelphia.

Good

doVery busy.

Very dull.

Imports increased; j Volume slightly de- Large.,exports decreased.! creased; value |

J substant ia l ly ;• »

Increased I DecreaseLittle change from ! Steady

last month. jSpotty I Heavy

Unsatisfactory | Labor supply Ic! than demand.i Fairly good

IncreaseNo change.

District No. 4Cleveland.

Not entirely satis-factory.

Fair

ImprovedEngaged as fully

as practicable forwar purposes.

Decided falling off.

IncreaseFirm at. about

per cent.Increase

All energy devoted j 'Fuel and transpor-t;o needs of the j tation serf on sGovernment. ; problems.

Scarce and wages j Slightly better—

Good j Not unfavorable.,.

General adoptionof "necessitiesonly" policy,and adjustmentsto fulfill Govern-ment require*ments.

Fuel, transporta-tion, and laborunsatisfactory.

District No. 5—Richmond.

Satisfactory; goodvolume.

Prices high and re-turns satisfac-tory.

District No. 6™Atianta.

Good.

Winter grains fab.

Running full on j Operating fall,remunerative I

Private building \ Very little.limited; Govern-1ment work in !large volume, i

Limited by re- ! Lightstrictions andscarcity of freightroom.

Increase Increase-Plentiful at 5 to 6 ! Stiffening.

per cent. ;Increased ; Increase.

Scarce and wages . Fair,high.

Generallysatisfac- ', Good,tory.

Bank d e p o s i t shigh; collectionsgood; money be-ing spent toofreely.

General businessCrops:

Condition

OutlookIndustries of the dis-

trict.Construction, build-

ing and engineer-ing.

Foreign trade..

Bank clearingsMoney rates

Railroad, post office,and other receipts.

Labor conditions

Outlook

Remarks

District No. 7-Chicago.

District No. S~St. Louis.

District No. 9—Minneapolis.

Active | Active Goodj i

Good ! !

..do..Generally active.... Generally active...

Very quiet.

IncreaseFirm

Post office increase.

Scarcity of labor

Good

Very quiet.

IncreaseFirm

InereaseMen scarce; high

wages.

Good

j Cotton moving! slowly.

ActiveFair Little building...

District No. 10—Kansas City.

Excellent

Large yield; muchsoft corn.

Wheat goodExcellent

Decrease..Very firm.

IncreaseGood

Favorable.

Large amount offall plowing ac-complished.

Good..

IncreaseSlight advance.

GoodFully employed;

but 1 i 111 *trouble.

Good

General car short-age; all impor-t a n t l a b o rt roubles ad-justed; Govern-ment regulationworking well.

District No. 11-Dallas.

Fair..

..do..Very activeOrdinary building

below normal;total operationsgood, accountGovernme n t ' sactivities.

Large; increaseoverOctober,1916.

IncreaseFirm; d e m a n d

good; a m p l efunds.

Increase ,

Unusual demandfor skilled men,and actual short-age.

Situation gener-ally satisfactory.

Scattered r a i n shave helped sit-uation; drouthserious in por-tions of district;business a tlarger c i t i e sgood, at canton-ment points atrecord figures.

District No. 12—San Francisco.

Large volume.

Active.38 per cent less than

a year ago.

Increase.Firmer.

Very large.

Unsettled but less

For larger tradeand active indus-try.

Extraordinary re-turns for agricul-t u r a l productsand extraordi-nary wages to anunusual numberof employeeshave resulted inactive trade.


DBCEMBHB 1,1917. FBDEBAL RESERVE BULLETIN. 959

GENERAL BUSINESS CONDITIONS.There is given on the preceding page a sum-

mary of business conditions in the UnitedStates by Federal Reserve districts. These re-ports are furnished by the Federal ReserveAgents, who are the chairmen of the boards ofdirectors for the Federal Reserve Banks of theseveral districts. Below are the detailed re-ports as of approximately November 23:

DISTRICT!1 NO. I—BOSTON.

Business in general follows the same trend asduring the last month or two, Governmentbusiness becoming an ever-increasing factor,and domestic business, except in necessitiesand lines pertaining to war, is gradually becom-ing less. This has been emphasized during/thepast month by statements emanating fromWashington that all our energies must be de-voted to the carrying on of the war and all otherinterests must be secondary.

The large oversubscription to the second Lib-erty Loan in this district is due to the patrioticefforts of banks and business men who gave un-grudgingly of both their time and money for sub-scriptions and to further the success of the issue.

Although the banks in this district have hadheavy demands throughout the year from theircommercial customers; still the financing ofLiberty -Loan subscriptions dining the lastmonth has been accomplished without any un-due disturbance to the money market.

The securities market has heen unsettled,and this disturbance has extended to even thehighest grade of railroad bonds, which in somecases have shown radical declines, carryingthem to a lower point than for many years.

The labor situation has been a most disturb-ing factor not only in domestic business butalso in plants engaged on Government work.In the latter, strikes have been in progressduring the month.

The boot and shoe industry is spotty, andmanufacturers are using a good part of theirfacilities on Government orders. Retail shoebusiness is somewhat duller, due to general

economy and higher prices. In men's shoesthe lessening demand is attributed to the draftof young men into the Army. Manufacturers,in making comparisons of their business, findthat they are selling fewer pairs of shoes thanlast year, but that their business in moneyvalues is larger, because prices are on an aver-age 30 per cent higher than a year ago. Theleather market continues firm, and many of thelarge manufacturers are following a hand-to-mouth policy in purchasing their requirements.

The wool market continues firm, with, a ten-dency upward.. The English. Government hasreleased 45,000 bales of Australian fine wool,and this is reported to have all been shipped.In fact, one small shipment has already beenreceived. This will be put on sale at auctionin Boston to be used for civilian purposes.Wool and worsted mills continue to operate atcapacity. The November 1 statement of theNational Association of Wool Manufacturersshows a very small percentage of idle machin-ery.

The cotton mills continue busy, although mfine and fancy goods new orders are not keepingup with production. Buyers are still con-servative and are not speculating on the future.For the most part they are unwilling to pay thehigher prices necessitated by increased pro-duction costs.

Print cloths and coarse goods are in betterdemand, and in the former prices are advanc-ing without any decrease in the demand.

Imports through the port of Boston, for themonth of September show some interesting fig-ures, especially those from. Mexico, Cuba,Egypt, and South Africa, which are largely inexcess of previous years. Exports during thatmonth to the United Kingdom and Italyshowed a marked decrease. The increase inimports was largely in cotton, fibers, sugar,and wool.

Money is firm, but not more so than it hasbeen for some time. Cotton brokers are con-siderable borrowers, as are wool men. Choice


960 FEDEBAL RESERVE BULLETIN. DECEMBER 1,1917.

mill paper is selling at 5J per cent for sixmonths. Money on call ranges from 4J to 5per cent. Time mone}^ is not overabundant,with rates normally 5-J to 6 per cent.

The exchanges of the Boston Clearing Housefor the week ending November 17, 1917, were$374,002,763, compared with $277,309,318 forthe corresponding week last year and $240,-038,634 for the week ending November 10,1917.

Building and engineering operations in NewEngland from January 1 to November 14, 1917,amounted to S183,694,00Q; as compared with$183,883,000 for the corresponding period of1916, the highest previous year recorded.

The receipts of the Boston post office forOctober, 1917, show an increase of $40,575.58,or about 5 per cent more than September, 1916.For the first 15 days of October, 1917, receiptswere about 38 per cent, or $144,338.85 morethan for the corresponding period of last year.

The Boston & Maine Railroad reports netoperating income, after taxes, for September,1917, as $1,233,734, compared with $1,386,173for the corresponding month of 1916. TheNew York, New Haven & Hartford Railroadreports operating income, after taxes, for Sep-tember, 1917, as $2,287,100, compared with$2,187,4.35 for the same month last year.

Loans and discounts of the Boston ClearingHouse banks on November 17, 1917, amountedto $501,874,000, as compared with $456,701,000last month and $455,402,000 on November 18,1916. Demand deposits on November 17,1917, amounted to $448,815,000, as comparedwith $394,376,000 on October 20, 1917, and$369,095,000 on November 18, 1916. Timedeposits on November 17, 1917, totaled$25,560,000, as compared with $29,813,000 onOctober 20,1917, and $28,951,000 on November18, 1916. The amount "due to banks77 onNovember 17, 1917, was $153,431,000, as com-pared with $144,914,000 on October 20, 1917.

DISTRICT NO. 2—NEW YORK.

Current reports from banks and businessinterests of the district indicate substantialprogress in war organization without serious

disruption of business or diminution of generalactivity and prosperity.

Unsatisfactory transportation conditionscontinue, and indicate that more rapid adjust-ment must be made if the strain upon the rail-roads is to be lessened and serious congestionavoided, for despite the vigorous efforts whichthe carriers are making, industries essential towar preparations are seriously hampered,especially the coal-mining industry and throughit practically all manufacturing.

With the exception of numerous complaintsconcerning transportation and labor conditions,the general comment from our correspondentsindicates active and prosperous business. Agri-cultural implements are selling well at pricessubstantially higher than normal. Activity inmachinery manufacture continues unabated,supported largely by Government orders.Demand for railway, mill, and mining suppliesis lessening slightly. Building trade materialsare purchased only for limited immediaterequirements. The absolute necessity, how-ever, of increased housing facilities in factoryand shipbuilding centers has led to specialefforts toward construction of this character.The volume of business in rubber productscontinues heavy, although there is hesitancyamong private buyers.

Sustained activity is the report from thetextile and clothing industries. Men's andwomen's clothing is selling freely in spite ofsharp advances in prices. The hosiery andunderwear trades are fairly busy, with Govern-ment orders an important factor. Manufactur-ers of cotton textiles are hampered by difficultyin obtaining raw cotton promptly, and par-ticularly by the problem of labor supply.Buying demand is excellent, with a tendencynot to question prices, buyers trading formonths ahead. Silks are selling readily andwith no sign of diminishing demand, ordersbeing placed ahead both for actual wants andin anticipation of future needs. This fact,taken with the report of active business in fursand other clothing, appears to indicate that thepublic is not stinting itself in the matter ofclothing. Further evidence of the absence of



rigid economy is furnished by the heavyvolume of sales of jewelry and watches.

As a result of high prices and of overstockinglast year, the volume of business in men'sshoes is not quite up to the usual standard.A tendency on the part of retailers to order insmaller quantities and more frequently isnoticed.

Interior decorating and house furnishingcompanies are experiencing a recession ofbusiness, with buyers cautious and conserva-tive, and as prices have advanced to themaximum, which it is thought the public willpay, further advances in the cost of rawmaterials will mean curtailment of business.

The paper manufacturers are having a goodvolume of business, though with narrowingprofit, because of increased cost of labor, fuel,and wood. Pulp wood now costs twice as muchas three years ago, while the cost of labor inthis industry is reported to have increased 50per cent. There is considerable unsettlementin the drug and chemical lines, with demandbetter than supply.

Conditions in the metals trades are very un-even. Practically all of the copper producedin this country is now being taken by theGovernment and the supply has been muchbelow the demand. Production of lead, on theother hand, has outrun consumption. Exportsfor last year were 225,000 tons of pig lead andlead manufactured articles, or approximately35 per cent of the entire production. Theexports this year have been trifling in amount,and have been practically offset by importsfrom Mexico.

The oil industry reports an upward trendin prices of lubricating and fuel oils, but norecent change in the price of gasoline or burningoils. Burning oil is reported to be a drug inthe market, and fuel oils are bringing pricesas high as those obtained for the refinedproduct.

Conditions in relation to foodstuffs con-tinue little changed, buying being careful andfor immediate needs only, with prices steadyat levels considered high by the trade. For

the past six weeks there has been a seriousshortage of raw and refined sugars in thismarket, and although temporary relief has

| been found in the distribution of supplies here-j tofore purchased for export to neutral nations

and now used to supply the home market, itis expected that the available supply of sugarwill be very small until raw sugar from PortoRico and Cuba is received in large quantities.An international sugar committee is arrangingfor all purchases of foreign sugars that are tobe used both in this country and England,France, and other allied countries.

The closing of the second Liberty Loanshowed subscriptions for this district of$1,550,453,450, while the amount allotted was$1,163,475,200, of which $949,239,980 hasalready been paid in. Of these payments,which included $59,051,300 realized from cashsales of bonds, $687,741,746 were made in bookcredit, $153,972,000 in Treasury certificates,and $107,526,234 in cash. The bulk of thecash thus paid in was at once redeposited inbanks which had qualified as depositaries, andthe entire transaction was handled without anydisturbance in the money market, whichthroughout the loan campaign has been verysteady. Rates on call money have ruled closeto 4 per cent throughout the month, withadvances to 5 per cent on November 19, 20,and 21, while the rate on commercial paper hasheld steadily at 5-| to 6 per cent. The re-sources of the Federal Reserve Bank haveassisted greatly in the financing process. Itsloans and investments on November 19 reached$456,000,000, their highest point.

DISTRICT NO. 3—PHILADELPHIA.

Manufacturing industries throughout thedistrict are running at high pressure, restrainedsomewhat, of course, by the great difficultiesencountered in securing supplies and sufficientlabor. The great demand for cotton andleather, in particular, has made it very diffi-cult for manufacturers to get a quantitysufficient to meet their needs. In the silkindustry complaint is heard of some dullness


962 FEDERAL RESERVE .BULLETIN. DECEMBER 1,1917.

due to the economies now practiced on accountof the war.

The shipbuilding industry along the Dela-ware River continues to increase and ordersfor a very large tonnage are on hand. Anumber of extensive yards are under con-struction to take care of the increasing demandfor shipping.

Eetail trade continues to be about stationary,with minor fluctuations above and below thegeneral level of business. Increased wagesand the tendency to economize have beenconflicting factors with which business hashad to contend.

The farmers have been quite successful thisyear, though they were very much handicappedby the lack of farm labor. Crops appear tobe of good size and in excellent condition.Tobacco growers have been selling a goodportion of their crop at exceptionally highprices,

Building operations continue to be cur-tailed owing to insufficiency of labor andmaterials. There is a pressing demand forhouses in most industrial sections, but thereis no immediate prospect of its being satisfied.

The coal situation shows no improvementduring the past month, and in fact, the shortageis becoming a greater reality to the majorityof the people. The householders have feltthe inadequacy of the supply most of all, andin Philadelphia it has been found necessaryto initiate a card system in order to equalizethe distribution of an inadequate supply.

Opinion throughout the district seems tobo strongly in favor of granting the increases |in freight rates that the railroads are request- jing. It is recognized that improved transpor-tation facilities must be had in order thatbusiness may be satisfactorily conducted.

The floating of the Liberty Loan in thisdistrict was very successfully conducted. Pay-ments thereon have been made without anynoticeable disturbance of the money market.Loans have expanded, rates for money havebecome firmer and are quoted from 53^ to 6per cent.

DISTRICT NO. 4—CLEVELAND,

The Government activities, thrift cam-paigns, the Red Cross, and Y. M. C. A. cam-paigns throughout this district have all furtherimpelled business in this district to make thenecessary readjustments to a war basis. Thereis a decided tendency on. the part of all businessto serve the country and toward the policy of"necessities only/7

Business is not entirely satisfactory. Thereis a spotty inclination in some localities, andtransportation and labor difficulties have somedetrimental effect in certain lines, but through-out there is no material change for the worse.

Agriculture.—Harvest yields in corn andfoodstuffs were not up to estimates, but weregood, except that a large part of corn was notthoroughly matured and necessitated feedingof stock or conversion into some form of manu-factured product. Seasonable weather duringthe greater part of the month has aided fallplanting materially.

In northern Ohio the increased acreage ofwheat planted is estimated at from 25 to 50 percent over last year.

In the burley tobacco regions the lessenedcrop in pounds is more than offset by higherprices, and the tendency is to dispose of thecrop promptly. Indications are that tobaccomanufacturers are making financial prepara-tions for the handling of the crop, and theprospects show that the growers will.have anunusually large money return on this year'scrop.

Manufacturing.—Evidences of shortage ofiron ore begin to become general, and nearlyall the steel mills are declining business otherthan for Government requirements. Inade-quate fuel supply has curtailed operations insome of the furnaces, though on the whole thesteel industry is engaged in Government con-tracts as fully as possible.

The pottery and glass business is very active,and the general conditions are reported ashealthful. The manufacture and sale of facebrick have shown a marked decrease. The



reports do not indicate any material changesin other manufacturing lines from last month,except such as are required by labor and fuelconditions.

Mercantile lines.—The volume of the jobbingtrade seems to be normal, with increasedvalues. Some of the centers report increasein quantity of goods and a large increase inmoney value sold to country stores. Retailtrade shows a slight recession, but it is aboutup to the average for the season.

Collections.—Collections are better than pre-viously, and the percentage of slow paper isperhaps lower than average, though someindustries report arrearages incident to de-layed deliveries. Postoffi.ee receipts show sub-stantial increases over the corresponding monthof last year.

Building operations.—There is a decidedfalling off in all the larger cities except onein the number of permits and valuations fornew buildings. The demand for residenceproperties in the centers is still far greater thanthe supply, but the high cost of materials,inadequacy of labor, and the approach ofwinter are deterrent to increased activities.

Transportation.—The general situation isnot greatly improved, and in some parts of thedistrict is worse than heretofore, The rail-roads are evidently bending all energy torelieve congestion, but seem unable to handlethe situation satisfactorily.

Labor.—The dearth of skilled mechanicscontinues, and common laborers are veryscarce. Women are being freely employedby manufacturers, transportation companies,and other employers of labor where it is possibleto use them in place of men. There have beennumerous wage advances in industries, andall labor is fully employed. The uneasinessof a month ago is not so pronounced.

Money and investments.—The banks, despitethe Liberty Loan payment, are able to meetlegitimate demands, and money, though firm,is not denied to general trade. Rates through-out this district are steady at about 6 per cent.The investment markets are experiencing an

unprecedented quiet tone, with no demandfor any class of securities, even at greatlyreduced prices. Most investors seem fullyimbued with the idea of loaning to the Govern-ment,

Clearing figures in the nine principal citiesshow increases over the corresponding period

| of last year.! The seriousness of our country's participa-j tion in the war is being felt generally by busi-ness in this district, and the outlook is for thetacit acceptance of the situation as it developsfrom time to time and determination to makethe best possible of it.

DISTRICT NO. 5—RICH1VIOND,

Reports in the district continue to accentuatethe disturbed conditions regarding labor, lackof transportation facilities, and abnormal con-ditions in many directions. Aside from thesenotes of uncertainty, the unprecedented highprices for cotton, tobacco, and other productshave kept business generally up to high-watermark. There has been an increased productionof wheat in the southern portion of the district,,and general agricultural production has beenvery satisfactory.

Trade is in good volume, retailers reportingparticular improvement, some an increase of asmuch as 20 to 25 per cent, the increase beingprincipally due, however, to the very highprices. Wholesalers in shoes, dry goods, no-tions, and other lines are active, but factorydeliveries are reported slow in all lines, due par-ticularly to shortage in labor and freight facili-ties. Collections are universally reported good.Packers are doing somewhat less owing to highprices and difficulty in procuring supplies.Flour mills are running to full capacity on aprofitable basis.

Building is almost at a standstill, exceptGovernment work, but most of the canton-ments in the district are about complete. Thiswill free quite a volume of labor for employ-ment in other lines. Shipbuilding is active andorders for military supplies continue in largevolume.


964 FEDERAL EESEEVE BULLETIN". DECEMBER 1,1917.

Producers of coal emphasize particularlydifficulties in labor and transportation as beingtheir most serious problems, and say that butfor these the output could be made to take careof the increased consumption. The railroadsare not able to furnish sufficient equipment tokeep pace with the increased fuel demand, andare themselves complaining of the inadequatesupply and exceedingly high prices.

Cotton picking is about complete. Cottonis selling freefy and about as fast as the railroadscan move it. This is the tenor of advices frominterior points, but the ports report a disposi-tion to hold cotton for higher prices and busi-ness is restricted by lack of shipping facilities.Normal freight rates to Liverpool were $1.50 to$1.75 per bale, but are now $45 to $50 per bale.

The clothing trade seems to be a little slow ingeneral lines, attributable to mild weather andthe large number of men who have gone intodifferent branches of the Government service.

Manufacturers in all lines are running tocapacity. The consumption of cotton is largeeven at present high prices, as products are stillyielding excellent profits. Munition contractsin this district have been'about completed andour largest locomotive plant is now running fulltime on regular work for foreign shipment.Wagons and agricultural implements are instrong demand, but labor is scarce and wageshave advanced 40 to 50 per cent. The volumeof business is large, owing to the high prices,but the number of vehicles and implementsshows a decrease. Implement dealers are urg-ing jobbers to lay in supplies now and avoidcongestion and embargoes which are likely to beencountered during the spring.

The leather market is strong, buying active atfull prices, collections good, and trade limitedonly by the obtainable volume of raw materials.Prices paid farmers for hides are the highestfor many years.

The peanut crop is only about two-thirds ofan average. Ordinarily prices range from 3 to4 cents per pound, but are now 8 and 9 centsper pound. The demand for peanut butterand other food products has stimulated thedemand, which has resulted in these high prices.

Tobacco has been selling freely and somehigh grades bring unheard-of prices; in someinstances as much as $1 per pound, the averageprice being 30 cents to 35 cents.

Money is readily obtainable, but the demandis good, rates ranging from 5J to 6 per cent.Farmers7 paper is being paid up more closelythan has ever been known and considerablepayments are being made on mortgages. Landsales are unusually active at advancing prices.Deposits in banks are the highest ever known,but the demand for financing in every line hasoffered ample employment for them. Clear-ings show an increase of 35 per cent and post-office receipts also indicate a considerable in-crease. The latter is attributable to a consid-erable extent to the location of cantonments inthe district and the increased rates of postage.

Crop preparations are naturally limited inextent at this season of the year, but fertilizermanufacturers anticipate an active demand fortheir goods at remunerative prices and are urg-ing early shipments for the coming season.

The prices realized from crops in this districthave increased its wealth and resources to avery appreciable extent, and trade activitiesare reflected in the increased volume of busi-ness being handled by the Federal ReserveBank of Richmond.

The response of the people and the banks inthis district to the second Liberty Loan hasbeen most gratifying. The minimum appor-tionment to the district of $120,000,000 wasabout 8 per cent of the banking resources andthe maximum apportionment of $200,000,000,over 13 per cent of the banking resources.

The subscriptions reached the enormous totalof more than $201,000,000, the New York dis-trict and this district being the only two inwhich the subscriptions exceeded the maximumapportionment.DISTRICT NO. 6—ATLANTA.

Business continues good. The Sixth Fed-eral Reserve district subscribed to approxi-mately $90,000,000 of the second Liberty Loan,and while $40,000,000 was paid in on bondsubscriptions on November 15, the conditionof the banks of the district proved sufficiently


DECEMBER 1,1917. FEDERAL BESBBVE BULLETIN. 965

strong to enable them to finance all paymentswithout creating any financial strain. It isnot expected that the next installment pay-ment due December 15 will have any materialeffect on business conditions generally, norinterfere with the ability of financial institu-tions to care for the legitimate money or creditrequirements of the district. Bank clearingscontinue to increase. There has been a no-ticeable stiffening of money rates during thepast month.

Wholesale and retail houses report an excep-tionally large volume of business during No-vember, with collections better and more satis-factory than at any time within the past20 years. One wholesale house reports a col-lection of 70 per cent of their entire receiv-ables due and not due on their books October 1.Advance orders for spring business are in ex-cess of last year.

There is considerable congestion in railroadfreight and passenger service and complaint ismade of delay in handling the mails. Diffi-culty is experienced in obtaining merchandise,it being nothing unusual for express fromNew York City to require 7 to 10 days intransit. Railroad, express and postoffice re-ceipts continue to increase. Industrial plantsare operating at high speed, though labor con-ditions are not so bright as in previous months.Withdrawals for Army service are beginning tohave an effect, in addition to the inclination ofa certain element of labor "laying off" onaccount of inability to withstand the influenceof a prosperous wage.

Cotton oil mills are largely employed incrushing peanuts. On account of shortage ofcotton in certain sections and exorbitantprices for raw products, and with an over-abundant supply of peanuts, these mills find itmore profitable to crush peanuts than cottonseed. The industry is proving profitable to thepeanut producer.

High prices brought about a considerablemarketing of cotton, and with plenty of freightroom it would not be long before the cropwould be in the hands of the spinners.

In the dark tobacco fields a large crop hasbeen housed and buyers are offering as high as$21 per hundred, the low mark being $15.These prices are beyond expectation, the aver-age offered being about $18 per round.

The Florida citrus crop is possibly 40 percent short. Prices and demands, however, aregood. Splendid weather prevailed in Tennes-see for planting winter crops, with somethingmore than an average acreage sown to wheat.In Georgia, Alabama, and Mississippi theweather has been unfavorable and very littlegrain has been put in, though preparationsare under way for a good planting betweennow and Christmas. For the first time inmany years winter grains will be planted inthe northerly section of Florida. Louisianahas experienced an unprecedented drought, infact, some parts of Louisiana are over 30 inchesshort of normal rainfall. This has seriouslyaffected the cane crop, the cut being not over60 per cent of a crop. Though the fertilizershipping season has not opened, indicationspoint to an increased use of approximately 15per cent, with prices probably to range 33£ percent advance over previous year.

The people are seriously taking up the workof food conservation and pledge cards are will-ingly signed by all classes of citizens. TheTuesday "meatless days" and Wednesday"wheatless days" prevail largely throughoutthe district, especially in restaurants andhotels. The general trend is to a more seriousview of the war and a clearer realization of thenecessity of a more rigid economy. In thisconnection the sale of Liberty bonds has had astrikingly good effect with wage earners andsalaried people who are the more numeroussubscribers to bonds. Objection to conscrip-tion has practically ceased, as evidenced by agreater solidarity for winning the war.

DISTRICT NO, 7—CHICAGO.

Throughout the seventh Federal Reservedistrict business involving necessities is activewith Government orders playing an importantpart and labor in strong demand at high wages.


986 FEDEEAL EESEEVE BULLETIN. DECEMBER 1,1917.

Liberty Loan withdrawals have caused somedisturbance of banking equilibrium, but thingsare adjusting themselves, and the promptnessof this adjustment in a given locality will v a ^with the nature of its industries. Borrowingin the market has been restricted practicallyto short-term maturities owing to the presentabnormal market depression. During the Lib-erty Loan flotation investment houses gener-ally dropped their own business for that ofthe Government; however, the anticipated re-kindling of interest in securities did notdevelop, and no material improvement in thisdirection is now in sight.

Winter wheat looks good in some localities,though wheat, as well as rye, was sown latein other sections and it is too early to forecastaccurately. Soft corn is much in evidence, butno particular hardship is reported, as this isbeing fed live stock, which is bringing highprices. The bean yield is better than antici-pated and potatoes average well, though frostshave had some effect. Throughout the dis-trict increased acreage of winter wheat andrye is reported. Monej rates are expected toremain hard for some time to come.

This is the slow season for agriculturalimplement concerns, and the usual condition isaggravated by the bad weather in Octobermaking a late season. The labor shortage andscarcity of materials are noticeable.

The volume of pleasure automobile businessis causing manufacturers some concern, but it issuggested that by directing their facilities intoother channels, such as truck and aeroplaneengine manufacture, hardship in this directionwill be minimized.

Building and construction are far belownormal, due to governmental restriction of theuse of certain materials. Scarcity of laborand of all materials are equal factors.

The car situation is still to be considered inthe coal industry and demand exceeds theavailable supply. Production in Illinois hasshown some improvement in the last two weeks.

Conditions in the distilling line are far belownormal, with no new activity promising.

In dry goods advance sales are satisfactoryin dollars and cents volume. A tendency isnoted on the part of retailers to buy; moreconservatively and the demand for so-calledluxuries is expected to decrease inversely withthe increase in demand for Governmentnecessities. There is a scarcity of goods.Collections are good.

Furniture manufacturers report business atabout the same level as last month, but they aresomewhat confused as to the future in the lightof rumors regarding possible Government re-striction of loading of lumber for furniture fac-tories. The car shortage is causing someuneasiness. Collections are fairly satisfactory.

Scarcity of grain at terminals is mentioned asa very unfavorable circumstance and contribut-ing causes to the shortage are given as theattitude of farmers who are delaying the usualmovement, also the shortage of carryingequipment. Corn prices are working higher,due to the unanticipated poor quality. Not-withstanding the high prices for oats, farmersare said to be holding out for still greaterreturns, and this is keeping receipts at terminalslight.

Difficulty in securing sugar and flour ismentioned in the grocery line and the inabilityto secure these staples effected a drop in sales forsome wholesalers during the last half of Octo-ber. Retailers are uncertain as to what standto take as to increasing their stocks in the faceof price fixing and the wave of economy amongconsumers. The volume seems good and col-lections are fair to good.

The hardware line appears to be in satis-factory position, with money value of salesgenerally large and collections good.

The jewelry business suffered somewhatduring October and this is attributed to theLiberty Loan campaign. Its volume decreasedfrom normal as established in the past year butexpectations are for a satisfactory resumptionof sales.

The leather industry is absorbed in Army andNavy contracts and can afford to overlook afalling off in demand from civilians. Tanners


DECEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 967

are busy, jobbers are quiet, and retailers reportsatisfactory business. Collections are good andlabor for the present seems satisfied.

Receipts of live stock are in good volume andthis is expected to be maintained. The softcorn has prompted feeding to an unusual degreeand prices are high.

Lumber distribution is handicapped byshortage of cars. Orders, however, have beenwell maintained for this time of year and priceshold up well. Retailers are rather pessimistic,due to the continued slump in building. Collec-tions are not as good as they might be.

Mail-order houses report an increase for thismonth over the same period last year.

Piano manufacturers generally report agood volume of business with a scarcity ofskilled labor, materials, and shipping facilities.Collections remain good.

Shipbuilders arc still working at capacity,with labor shortage an outstanding feature.Steel is also at capacity. The balance of pro-duction not required by the Government isfinding a ready market. Collections arc good.A brisk demand from domestic sources is lookedfor to take care of next year's business now thatthe price question has been settled.

Raw wool is at top prices and difficult to pro-cure in desirable quality. Some relief is ex-pected from South America and Australia, andthe increased use of cotton mixed goods as asubstitute is suggested. The Government ispractically monopolizing the mills.

Clearings in Chicago for the first 21 days ofNovember were $1,560,000,000, being $170,-000,000 more than for the corresponding 21days in November, 1916. Clearings reportedby 20 cities in the district outside of Chicagoamounted to $297,000,000 for the first 15 daysof November, 1917, as compared with $267,-000,000 for the first 15 days of November, 1916.Deposits in the 12 central reserve city memberbanks in Chicago were $837,000,000 at the closeof business November 20, 1917, and loans W3re$594,000,000. Deposits show a decrease ofapproximately $1,000,000 over last month andloans an increase of approximately $24,000,000.

DISTRICT NO. 8—ST. LOUIS.

General business in this district continuesactive. Especially is this true of those indus-tries which are furnishing supplies to the Gov-ernment. The requirements of the Govern-ment have had a tendency to divert the pro-duction of nan essentials to those things whichare needed for the prosecution of the war, andin many instances orders of civilians and pri-vate enterprises are being turned aside to takecare of Government needs. The restraintsimposed by the Government have had a deter-rent effect on some industries, and the scarcityof supplies has retarded other lines, but on thewhole the stream of ordinary business is run-ning freely and the present outlook is favorable.

Manufacturers of shoes and ready-to-weargarments are especially busy, and wholesaledry goods companies, hardware jobbers, drugdealers, and retail stores all seem to be trans-acting a large volume of business. There hasbeen a good demand for all kinds of seasonablemerchandise. A number of country mer-chants are buying for the future, apparentlyfeeling that the prices will not be lower.

The prices on commodities continue high,but are made more bearable in the countrydistricts by the unusually high prices the farmeris receiving for his products, and in the city bythe full employment of labor at high wages.Government reports in dicate that on November 1the price index of all crops was 46.1 per centhigher than a year ago and 104.3 per cent higherthan the average of the preceding five years.

Due to the prevailing high prices and thecampaigns by Federal authorities, there seemsto be a growing tendency on the part of con-sumers to economize and be more careful intheir purchasing. This is shown, by the moregeneral centering of demands in the stapleclasses of merchandise. Signatures to thefood pledges have also been obtained freely,and many restaurants as well as homes arenow observing meatless and wheatless days.

Collections throughout the district are re-ported good, except in a few sections where thecrop movement has been somewhat late.


963 FEDERAL BESERVE BULLETIN. DECEMBER 1,1917.

The production of all crops this year in the jState's within this district is estimated to be ;TTA per cent above the average for several \years past. This year's corn crop in the States ;within this district was estimated on November1 to be 389,339,000 bushels more than that of ;1916. The potato crop also greatly exceeds1

the production of last year. The winter wheat :is now all planted, the acreage being consider- ;ably in excess of that of 1916. Rain is neededin some quarters. '•

On account of the cotton in the southern ;portion of the district having been damaged by ;killing frosts early in October, the crop is !considerably shorter than expected. Prices 'are high, but the cotton is not moving as :rapidly as it usually does in a normal season. iThis is doubtless due partly to the holding of jcotton for higher prices and partly to the !inability of exporters to get ocean tonnage. !

The railroads are operating to capacity, but ithere is still a considerable shortage of freightcars, which is causing delays in deliveries andhandicapping ordinary business. \

Through intercession by the Government, jthe trouble between the coal miners and the ;operators in Illinois has been settled, and the ,coal situation is improving. However, the idemand still exceeds the supply, due in great !

measure to the inability of the mines to get 'cars and abnormal consumption. ;

Labor continues scarce in this district.Trained men in the different lines are especially jin demand. Unskilled laborers also find ready :employment. In many industries it has been ,necessary to obtain women to do the work jformerly performed by men.

During the past month there has been adecided increase over the previous month inthe receipt and sales of cattle, horses, and mulesin the St. Louis market, with decreases in thereceipts and sales of hogs and sheep.

Postal receipts for October in St. Louis,Louisville, and Little Rock show substantialincreases over the same month last year, whilethe receipts in Memphis show a slight decrease.

Reports from Little Rock, Louisville, Mem- jphis, and St. Louis indicate that building j

activities during October were considerablybelow those for the corresponding month lastyear. On account of the high prices of mate-rials and the scarcity of labor, there is very littlebuilding going on, outside of extending factoriesto take care of war orders and necessary placesof abode.

The chief financial activities of the monthhave been those involving the flotation of thesecond Liberty loan. The subscriptions tothis loan were closed on November 1, with thetotal subscriptions in this district aggregating$184,280,750, or $64,280,750 more than theminimum assigned.

There has not been much change in bankrates since the last report. The rate to cus-tomers in the larger centers ranges from 5Jto 6 per cent, with rates in the outlying dis-tricts slightly higher.

Commercial paper of the best names is beingoffered at from 5 | to 5f per cent. Thereis a fairly strong demand from country banksfor this time of the year, but the large citybanks, as a rule, are not in the market forcommercial paper.

DISTRICT NO. 9.—MINNEAPOLIS.

After a long period of very favorable fallweather, the northwestern grain territory em-braced in the Ninth Federal Reserve districtis ready for winter. A large amount of fallwork has been accomplished. The farmershave been busy thxoughlut the month prepar-ing their fields for spring planting. In thewestern part of the district, where the 1917crop was short, there has been unusual activity,and line elevator managers report that theoutlook is for an increased acreage of wheat andother small grains next year. In westernNorth Dakota, where the serious losses on the1917 crop have created a serious problem,conferences are being called, under the lead ofthe State agricultural college, to prepare inadvance to meet the shortage of seed, and toconsider plans of financing for farmers whoneed assistance.

The receipts of wheat at Minneapolis andDuluth terminals are considerably lighter than


DECEMBER 1,1917. FEDEBAL RESERVE BULLETIN. 969

a year ago. To the middle of the month, thetotal receipts were 7,000,000 bushels short ascompared with the same period a year ago, andelevator stocks amounted to 2,607,000 bushelsas compared with 18,877,000 bushels a yearago. The output of flour by the mills of thedistrict has been curtailed by the difficulty insecuring cars, and railroads are making everyeffort to induce all flour shippers to load everycar received to its fullest capacity. Mills havebeen warned that unless this is done there isdanger that some of them will have to shutdown for lack of cars.

In Minnesota, the public safety commissionhas introduced war bread, which is being,manu-factured under its direction, and distributedfrom licensed stores at 6-J- cents for a full poundloaf. A daily distribution of 9,000 pounds inSt. Paul and Minneapolis has already beenarranged for, and the amount will be increasedas additional stores are licensed. War bread isnot as rich and nutritious as bread ordinarilysold, but is obtainable at a substantial reduc-tion of price, and is in strong demand.

Business conditions over the district arefavorable. Retail trade at the larger centersshows sume evidences of a disposition on thepart of buyers to purchase conservatively, andto put some measure of control on the buyingof luxuries.

Retail trade at country points does not seemto be much affected, and is in good volume.The outlook is generally favorable.

Construction is in fair volume, but consistschiefly of necessary business structures andsimilar work that can not be deferred. A fairamount of residence building is in progress,although much of that class of work has beendeferred on account of the high cost of laborand material. M.oney rates are very firm andthe demand at both city and country banks isactive. Industrial conditions are favorable.The larger concerns have ample orders aheadand labor is fully employed.DISTRICT NO. 10—KANSAS CITY.

Agriculture.—The wheat crop of this year forthe district was only two-thirds that for lastyear, but late estimates for corn indicate an

increase in bushels of 50 per cent over the 1916crop. Frosts did considerable damage to thecorn, the extent of which can not yet be judgedaccurately. The soft corn has created anunusual condition in the way of a wide varia-tion in prices bearing little relation to theintrinsic value of the various grades. Withprices ranging from 25 cents to $2 a bushel, andno accurate way of judging the amount ofmoisture in the new corn, local dealers arechecking their buying rather than continueunder such, hazards.

While the wheat acreage asked for may nothave been readied, the amount planted is inexcess of that for last year. Missouri reportsan increased acreage over 1916 of 37 per cent.Oklahoma has planted 2 per cent more. Relia-ble reports from Kansas and Nebraska are notavailable, but indications are for slight increases,probably about 5 percent, when the seeding isfinished. Complaints have been made thatdry weather east of the Rocky Mountainsinjured some of the early planting, but rainsabout the middle of November have restoredmuch of the damage.

At the local market for October, wheatreceipts were only one-fourth and shipmentsone-eighth those for a year ago. Corn receiptswere 40 per cent more and shipments 43 percent less for the same two periods. At theend of the month the visible supply of wheatwas only one-twentieth that for a year ago andof corn four-fifths. The food administrationhas been able to improve the conditions withthe mills and keep them going at almost fullcapacity.

Live stock.—In this district for the firs I: 10months of the year cattle receipts at the mar-kets reached the total of five and a half mil-lions. This is a fourth more than were mar-keted for the period last year, and the move-ment continues strong, owing principally to thedry weather and short pasturage in the belt-east of the Itocky Mountains, which forcescattle to market in thin condition. Receiptsfor October were 37 per cent over the previousmonth and 18 per cent over October a yearago. The poorest grades, used for canningpurposes, are bringing about the same price as


970 FEDERAL RESERVE BULLETIN, DECEMBER 1,1917.

a year ago, but all other classes are selling atgreat deal higher, beef cattle bringing from 30to 40 per cent more* The movement of stockcattle for feeding purposes continues strong,and should remain so on account of the softcorn to be utilized in feeding on the farms.Some difficulty is being had on account ofshortage of stock cars for shipping feeders tothe north and east.

For the 10-month period hog receipts weremore than 7,000,000, being a decrease of 11 percent from the figures for last year. Octobermarketings, while 28 per cent less than for thesame month a year ago, showed an increase of35 per cent over last September. Prices areabout 80 per cent in advance of those for lastyear. Since the food commission establisheda minimum price, the demand for stock hogshas been greatly stimulated at prices almost ashigh as for fat hogs.

The movement of sheep for October increased17 per cent over the previous month and 12 percent over October, 1916.

Mining.—Production of all ores for the Mis-souri-Kansas-Oklahoma lead and zinc districtduring the 10 months of the year, comparedwith the same period a year ago, increased100,000 tons, with an increased value of$2,000,000. In spite of the lower averageprice, stocks are practically three times as great,but conditions promise no further increase inthe immediate future. Total shipments for themonth ending November 11 decreased 2 percent over the month a year ago. Prices forzinc were slightly less than for September. Leadprices averaged one-eighth lower, with an ex-treme drop of one-third.

Under war stimulus, Nebraska will this yearproduce $2,500,000 worth of potash, which iseight times the value of her entire mineral out-put seven years ago. Interest is being arousedalso in the potash beds of the Rocky MountainStates, and official surveys of the beds are beingarranged for.

The coal situation has been serious. Fromevery part of the district has come the call forfuel. Stocks are low, but owing to the moder-

ate weather and the assistance of the Govern-ment authorities, actual want and sufferinghave been avoided. The Kansas-Missouri out-put has been lessened and threatened entirelyby an incipient strike. Colorado will this yearproduce 13,000,000 tons, nearly a third morethan last year, but will not reach the maximumof 2,000,000 tons more, because of a scarcity oflabor and cars, which has curtailed the outputat a third of the mines. Increased develop-ment of the mines in Wyoming is being lookedto as a partial solution, and authorities are at-tempting to provide transportation facilitiesaccordingly.

Oil.—In the Mid-Continent field operatorscomplain that notwithstanding the high pricesfor crude oil, full development has been limitedby the cost of labor and supplies and the diffi-culty in getting both. Yet, the number ofwells completed for October is nearly 40 percent greater than for September, with a slightincrease in total production. Piping from oldwells in Eastern States is being shipped in andsold at good prices. The larger companies inWyoming fields have secured supplies with theintention of drilling during the winter, therebeing now in that State about 200 wells partlycompleted.

The problem of waste gas at the wells inOklahoma is being handled by State authorities,with the result of an estimated saving aggre-gating $500,000 a year.

Lumber and construction.—The lumber tradeis quiet. There is little local home building, asmany of those who would build have enteredthe Army. High prices have eliminated thespeculator, while the question of labor acts as acheck in the larger cities. Some of the smallercities are notable exceptions. Owing to thegreatly increased production of oil near there,Wichita has had a remarkable increase in build-ing. During October Wichita, with an increaseof 661 per cent over October a year ago, is firstand Lincoln, with an increase of 517 per cent, issecond for all the cities reporting in the entirecountry. The country trade is awakening, butis not yet really active, for farmers are not yet


DECEMBER 1,1917. .FEDERAL RESERVE BULLETIN. 971

used to paying the higher prices, and are busyharvesting the corn.

Labor.—The strike record shows an improve-ment over the past few months and the middleof November found no strike of any conse-quence existing or contemplated in the dis-trict. There were ten or twelve small strikesof short duration. During the entire monththe miners of the Missouri-Kansas-Oklahomacoal district threatened to strike and the situ-ation was tense. Some of the men were outfor short periods, but in the middle of Novem-ber a conference of all parties directly interestedwas called and the miners yielded to the wishesof the Government administrators.

From nearly every locality and industrycomes the call for laborers. The lack of farmlabor is resulting in the increased use of ma-chinery for every purpose to which it can beadapted. The cessation of Government build-ing will probably be offset by the increaseddemands of the National Army this winter, sothat immediate relief for the situation is not atpresent in sight.

Mercantile.—Trade conditions are unusuallyactive; during the past six weeks many houseshave doubled their sales for the same periodlast year. Orders for holiday goods are veryheavy. Groceries, drugs, and provisions are inactive demand at increasing prices. Garmentfactories of the West are working to capacity,there being an undersupply of men's garmentsand an oversupply of women's ready-to-wearclothing. There is a continued decline in thesale of pleasure automobiles, but this is morethan made up by the increased demand forauto trucks and tractors, while the auto acces-sory and tire trade continues to increase.

Financial.—The unusual business activity ofthe month has been reflected in the bank clear-ings. Clearings for 14 cities in the district forOctober passed the billion mark, with an in-crease of 30 per cent over the same period lastyear and were more than twice the amounttwo years ago.

Money is in marked demand, rates havemade a slight advance since last report, and

credit terms are growing shorter in all lines ofbusiness, with both wholesalers and retailers.

DISTRICT NO. II—DALLAS.

Were it not for the unsatisfactory reportsfrom the drought-stricken areas of the districtthe business situation could be reported asgenerally favorable, with normal activities forthe season. The unprecedented period of dryweather has, however, curtailed activities inthe South, Southwest, and West, and our corre-spondents there are discouraged over the out-look. Some rain has fallen in portions of thesesections during the latter part of the monthand has been very beneficial, It was hardlysufficient to break the drought, and conditionswill not become normal until after heavy rains.

Agricultural conditions show little changefrom 30 days ago. The bulk of the cotton crophas been marketed, and there is no very largeamount left in farmers7 hands, though reportsindicate scattering lots held by merchants andothers in the district. Lack of export facilitiesand shortage of cars at compress points haveretarded the movement. Exporters are find-ing it difficult to make shipments.

The outlook for the wheat crop in this districtis not encouraging. In some sections it hasbeen too dry to prepare the ground for wheat,and farmers were afraid of losing the seed if thegrain is sown under present conditions. Thewheat already planted has failed to germinate,on account of the dry weather, and unless rainfalls soon the areas planted in wheat will beplowed up and put in other crops. The rice crophas brought excellent returns and reports fromthe producing sections are that growers havesold all their crop and are unusually prosperous.With peanuts bringing from $1.75 to $1.80 perbushel in northeast Texas, and prices for othercommodities in proportion, conditions in thatsection are good and farmers in excellent shape,merchants are enjoying a good trade and col-lections are excellent. North and northeastTexas may be said to be the one bright spot inthis district from an agricultural standpoint.

A good crop of beans has been produced inthe western portion of the district, though



growers are somewhat disturbed by the Gov-ernment price fixing, which gives them lessthan what they expected for the output. Thealfalfa crop in that section is also excellent, andthe prices received are very high.

As one correspondent reports, "cattlemenare strictly up against it on account of thedrouth." Those who have pear flats in theirpastures are feeding cottonseed cake and burntpears; others arc arranging to export to Mexico,where excellent range conditions are reported.A recent joint conference of representatives ofthe Texas Cattle Raisers7 Association and TexasCotton Seed Crushers7 Association was heldlooking toward relief for cattlemen in the South-west and measures taken to provide feed for thecattle in those sections. As a result of the con-ference a resolution was adopted fixing a maxi-mum price of $50 per ton for loose crackedcake, and $53.50 per ton for sacked cake, on abasis of 43 per cent protein—this price on thebasis of f. o. b. mills. Grass is reported as goodin most parts of New Mexico and Arizona andthe cattlemen in those sections are in bettercondition than farther south. On account ofthe car shortage sheep and cattle men have beenunable to make shipments in the Albuquerquesection. As in other parts of the range coun-try, rain is badly needed there and stock willsuffer unless water holes fill up before coldweather sets in. It has been necessary forstockmen to buy a largo amount of cottonseedcake with which to feed during the wintermonths.

Since the close of the second Liberty Loancampaign banks of the district have boon oc-cupied in making the second installment pay-ment and closing subscriptions on the issue.The payment of November 15 was made with-out undue confusion in the financial situation,the depositary plan being used to a large extentand payments made by credit in Governmentaccount. There is a good demand for money,and offerings with this bank continue heavy.No advance is noted in interest rates and theyremain steady. Bank deposits are at good fig-ures and continue to increase. Collections

show some improvement with the marketingof cotton and farm products. There has beenin some sections foolish rumors that the Gov-ernment intended to conscript or seize allmoneys on deposit in the banks. Effectivesteps were at once taken to meet and refutethese rumors and they have practically sub-sided without doing any substantial injury.The prompt and conclusive answer to theseabsurd rumors given by Secretary McAdoo,published in the daily press, did much to com-pose the situation. It is a matter of congrat-ulation that the banks over the district, bothState and National, are in such good condition,and that their management, with a very fewexceptions, have met the duty of the hour sonobly in their patriotic effort to make tho sec-ond Liberty Loan a success. Clearings show alarge increase for October over October 1916, or36 per cent. With the close of the Libertybond campaign some activity is noted in bonds,and brokers are receiving an increased numberof inquiries. In a statement issued by thecommissioner of banking of Texas under dateof October 27, attention was called to the un-usually prosperous condition of tho State bankson the call of September 11, 1917; the Statebanks reflecting a stronger condition than hasever been shown by a previous statement, whichindicates the prosperity existing in most sec-tions of Texas at this season.

Lumber manufacturers report that the carsituation has become much worse in the last30 days, so much so that at the present timeit is almost impossible to get cars, even to loadGovernment ship material; this even in theface of the appeal of the Government ShippingBoard to the mills to get out their material.The demand for retail yard trade is very light,but prices are steadier and show an upwardtendency. Were it not for the car situationconditions in the trade would be satisfactory.

There is some evidence of restoration ofnormal building operations in the past month,and with the completion of cantonment workand aviation contracts, thus releasing work-men for ordinary construction, it is expected


I.)i-:cj:Mi;Ei: 1. 1917. FEDERAL RESERVE BULLETIN. 973

the industry will be more active during thewinter, Permits issued at the principal cities—Austin, Beaumont, Dallas, El Paso, Fort Worth,Galveston, Houston, San Antonio, Shreveport,and Waco—in October, and the valuation ofthe same, were larger than in September, butshow a decrease over October, 1916, the figuresbeing as follows: October, 1916, $1,671,469;October, 1917, $989,034; decrease, $682,435, or41 per cent.

Wholesale and retail trade continues in goodvolume, and sales are in excess of last year.Mail-order houses are enjoying an unusuallybusy season, with collections in keeping: es-pecially is this true at cantonment points.

All industries of the district are active andrunning on full time.

Skilled labor in all its brandies is well em-ployed, and in various quarters there is con-siderable unfilled demand for skilled workers incertain lines. This condition, however, is notexpected to continue, as the work on canton-ments, aviation camps, and similar work is nowbeing completed, and this means that severalthousand skilled workers, such as carpenters,painters, plumbers, and electricians, will be outof employment.

The coal mines of Oklahoma are working tocapacity, and the car situation at the presenttime is better than usual.

Drilling is unusually active in the oil fieldsaround Iowa Park, and new pipe lines are beingconstructed in that section. Local refineriesthere are working to capacity. Drilling pipeis hard to obtain, and operations are hamperedon account of the water scarcity. A new fieldhas recently been developed near Coleman.Two wells have already been brought in thereand pipe lines have been contracted for andare now being laid to pipe the oil a distance ofseveral miles.

To summarize business conditions in this dis-trict they may be said to be generally satis-factory, and optimism prevails as to the out-look. It is hoped that good rains will fall overthe drouth-stricken area soon, and this shouldbe a stimulus to all lines of trade.

DISTRICT NO. 12—SAN FRANCISCO.

The President of the United States hasappealed to all eligible State banks and trustcompanies to become members of the FederalReserve system in order to contribute theirproportion toward fortifying the Nation tomeet present and future financial strains growingout of war requirements. He urges this as apatriotic duty, citing the solemn obligationto the country resting upon every bank officerand bank director, and with deep meaningsays: "The extent to which our country canwithstand the financial strains for which wemust be prepared will depend very largelyupon the strength and staying power of theFederal "Reserve Banks."

In the twelfth Federal Reserve District thereare 1,299 State banks and trust companies,having $148,000,000 capital and surplus and$1,160,000,000 deposits. Those having capitaland surplus such that they are eligible formembership are as follows, according to theannual reports of last year, when deposits wereprobably 25 per cent less than now:

State.

•\ri/onaCaliforniaIdahoNevadaOregonUtahWashington

Total

Num-ber

eligible.

2034153187500

115

742

Capitaland

surplus.

82,743,00035.432,0003'220,0002,103,0009,230,0006,789,000

12,140,000

78,512,000

Totaldeposits.

810.583,000266' 008,00020.782,00013; 342,00030,581,00030,298,00045,478,000

423,072,000

National banks, being under Federal juris-diction, were all constituted members from theoutset. In this district there are 534 nationalbanks, having $931,000,000 deposits. (Comp-trollers summary Sept. 11, 1917. Deposits bysummary June 30, 1916, were $696,000,000.)

Thus if each eligible State bank and trustcompany, whether large or small, shouldrespond to the President's appeal, the strengthof the Federal Reserve Bank of San Franciscowould be increased approximately 50 per centboth in capital and reserve deposits, and itsability to render aid would be increased inlike proportion.


974 FEDEBAJL EBBBEVB BULLETIN. , 1917.

State banks and trust companies in thisdistrict which have become members or havemade application are as follows:

State. ! Number.;Capital

andsurplus.

ArizonaCalifornia...IdahoNevadaOregonUtahWashington.

Total..

382,500

0 I0 :

Si2 i 2,110,0000 :

9

Deposits.

8839,000

17,515,000

3,758,000 29,298,000

13 ! 5,950,500 | 47,052,000

Of eligible State banks and trust companies,those holding two-thirds of the total depositsare in California, from which no applicationhas yet been received.

The State superintendents of banks in Idahoand Oregon have circularized banks under theirjurisdiction, urging them to join the FederalReserve System. Those of other States, includ-ing California, have expressed themselves asfavoring prompt response to the President'sappeal.

Banks, whether small or large, member ornonmember, may further aid the desired mobil-ization of gold by sorting out gold certificatesand shipping them to the Federal ReserveBank (in amounts of $1,000 or multiples).The Federal Reserve Bank will pay expresscharges on such shipments and, if desired, willsend Federal Reserve notes, charges prepaid,in return; or will credit upon its books orremit to other centers for credit. Those ableto ship gold coin should also write to the Fed-eral Reserve Bank.

The increasing use of trade acceptances ismaking for sounder bank paper. Grain dealersand millers of the Northwest adopted the useof trade acceptances on August 1. At arecent meeting at Portland of the West CoastLumbermen's Association the use of tradeacceptances was embodied in the new termsof sale. Beginning November 1, drafts willbe sent out twice a month for acceptance,no matter how small the account. To theextent that trade acceptances are used, open

book accounts are correspondingly reduced.An acceptance carrying the responsibility ofboth seller and buyer and growing out of asale of goods is a more desirable and moresurely liquid investment than one-name papernot necessarily growing out of sales of goods.

Labor conditions in this district are stillunsettled, but as this is written there are noimportant strikes. Those in the copper dis-tricts of Arizona have been settled and normaloutput restored. Shipbuilders both about SanFrancisco and in the Northwest have returnedto work, although dissatisfied, it is reported,with the increase of wages granted averaging35 per cent.

The United States Mediation Board, Secre-tary of Labor W. B. Wilson, chairman, has re-cently had many sessions here with variouslabor organizations in the endeavor to reachsuch adjustments as will result in continuousoperation of industries.

In the Northwest reduced lumber productionfor the remainder of the year is anticipated.

Mining products in Arizona will exceed thoseof last year, copper having an estimated valueof $200,000,000; other metals, $60,000,000.Cotton acreage has risen to 38,850, with aproduct valued at $6,000,000.

Car shortage is becoming serious, the onlyimmediate relief lying in better cooperation byshippers in heavy loading and quick discharge.

The wheat crop in Washington will totalabout 27,000,000 bushels, against 45,000,000last year. Fall planting is being hampered bylack of precipitation.

California citrus shipments for the year end-ing November 1, 1917, surpassed all records,aggregating 54,361 cars, the previous high rec-ord having been 48,548 cars in 1913-14. Thecrop of navel oranges for the current season,curtailed by excessive heat last summer, isestimated at 25 per cent; valencias, at 80 percent; and lemons, at 71 per cent of normal.

The raisin crop will exceed that of last yearby 35,000 tons.

During October the shipments of petroleumfrom California fields exceeded production by


DECEMBER 1,1917. FEDERAL HESERVE BULLETIN. 975

860,892 barrels, reducing stored stocks, onOctober 31 to 33,795,115 barrels, being the low-est figure recorded since February, 1911.Fifty-six new wells were completed during themonth, }delding an initial daily production of14,860 barrels.

Building permits in 20 principal cities de-clined from $7,533,000 in October, 1916, to$4,684,000 in October, 1917. Clearings showan increase of 35.6 per cent, Ogden leading with60.9 per cent increase and Tacoma second,with 55.7 per cent.

| The situation throughout the district is oneof great industrial and agricultural activity andlarge volume of trade. The splendid response

| of this district in buying $290,000,000 of the! bonds of the second liberty Loan evidences aj widespread, fervent, and patriotic desire toI serve the Nation, but there is as yet little evi-! dence of an effective realization of the neces-sity of service by curtailing individual con-sumption of the products of labor in order

| that the Nation may consume instead for warI purposes.



DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS.

During the month of October discount opera-tions of the Federal Reserve Banks totaled$2,681,165,854, compared with $548,164,104for the month before, and $750,270,739 forJune of the present year, when Governmentfinancing in connection with the first LibertyLoan may be said for the first time to havecalled into full play the discount facilities ofthe Now York Federal Reserve Bank. Mem-bers obtained accommodation just as before,in connection with the first Government loan,primarily through the discount of collateralnotes of the shortest maturities secured byLiberty bonds and certificates of indebtedness,and to a smaller extent through the discountof such notes secured by commercial paper.Of the total discounts for the month,$2,262,474,850, or over 84 per cent, representsthe amount of member banks' notes collat-erated by Government securities, $307,725,601,or over 11 per cent, the amount of such notesotherwise secured, and only $110,965,403, orless than 5 per cent, the amoTint of customers'paper rediscounted with the reserve banks.Of the total amount of collateral notes dis-counted during the month, over 90 per centrepresents the share of the New York bank,which reports the discount during the monthof $2,152^680,000 of collateral notes secured byLiberty bonds and certificates and of$185,687,000 of collateral notes otherwisesecured.

Among total discounts for the month, tradeacceptances (two-name paper) figure to theextent of $4,442,261, compared with $855,834for September and an average of $1,191,804for the nine months of the present year; also$1,659,491 of commodity paper, comparedwith $500,141 for September and an averageof $779,975 for the nine-month period endingSeptember of the present year. The largestincreases in the monthly discounts of tradeacceptances are shown for the San Franciscoand Cleveland banks, while Atlanta reportsnearly 70 per cent of the commodity paper dis-counted during the month.

Discounts for the 10 months of the presentyear, including collateral loans to memberbanks, aggregated $4,870,083,422, of which$4,358,,327,401, or 83 per cent, were collateralnotes, while $15,168,499 are specified as tradeacceptances and $8,679,267 a commodity pa-per. As compared with corresponding 1916figures, trade acceptances discounted by theFederal Reserve Banks increased about 366per cent, while commodity paper discountedby them declined about 42 per cent.

Owing to the large preponderance of day-to-day and 15-day collateral notes among thetotal discounts for the month, about 97 percent of these discounts is shown to have been15-day paper (i. e., maturing within 15 daysfrom date of discount with the Federal ReserveBank), the proportion rising to 99 per cent inthe case of the New York bank.

On the last Friday in October the FederalReserve Banks held a total of $397,094,000of discounted bills, as against $233,539,000at the end of September and $197,243,135 atthe end of June, following the consumma-tion of the first Liberty Loan. Of the total,$208,965,000 is represented by collateral notessecured by Liberty bonds and certificates ofindebtedness, $62,922,000 by collateral notesotherwise secured, $7,994,000 by agriculturalpaper, $109,065,000 by industrial and com-mercial paper, §6,064,000 by live-stock paper,and the remainder, $2,804,000, by miscella-neous paper, including customers' paper securedby Liberty bonds or certificates and nonmemberbanks' paper indorsed by member banks. Overtwo-thirds of the agricultural paper was heldby the Richmond, Chicago, Minneapolis, andDallas banks, while over 88 per cent of thelive-stock paper held is reported by the Minne-apolis, Kansas City, and Dallas banks.

During the month the number of memberbanks increased from 7,751 to 7,783 largely asthe result of accession to the system of Statebanks and trust companies. The number of

i discounting members shows an increase from


D B C B M B B K 1 ,1917 . FEDERAL RESERVE BULLETIN. 977

946 in September to 1,129 in October, theChicago Federal Reserve Bank reporting the

largest number of accommodated members forthe month, viz, 222 banks.

Bills discounted by each Federal Reserve Bank during October, 1917, distributed by sizes.

Banks.

BostonNew York. .PhiladelphiaClevelandRichmond.At lanta . . .ChicagoSt. Louis...MinneapolisKansas Cit vDallas ."San Francisco

TotalPer centMember banks' collateral notes ,

To $100.

Pieces.

120147

is303

19

289

421

Amount.

7,085

1,2909,0901 462

1853916-10

25,857.02

Over SI00 t o 8250.

Pieces. ! Amount.

15 : $3,30040 '• 6', 69843 8,09483 ! 4.79469 : 12,655

145 22,715244 ;• 42.277

73 1 13,48432 i 5.06347 9,34720 ; 3,86318 ! 2,982

779 : 135,672! .121

Over S25010 $500.

Pieces.

11348

IIS30

172115320

991001265424

1,319

Amount.

$50.15419.35745.23511.73271,27745,311

128,85938.49536,74647,93319,9138.423

523,435.47

Over $500 to §1,000.

Pieces. Amount.

172 4152.06566

13342

53.640107.91234.305

188 • 168' 133149 121.380438 ! 357.01988 ! 64,917

149 ! 102,686131 102.6495543

1,654

i

40,63934.859

1,340,2041.21

Over $1,0

Pieces.

19616i17812422924942616017317978

113

2,286

00 to $2,500.

Amount.

$360.427303.750323.378238.230406.930452,317

1.125.156334,442269.509291.522134,903214,092

4,454.6564.01

Banks.

Boston .New YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas C i t y . . .Dal las . .San Francisco .

Total.Per centMember bank's collateral notes.

Over $2,

Pieces.

2751,083

144142238205766351

8618060

389

3.919

50

500 to $5,000.

Amount.

$1,236,7595,283.681

635,353561,212

1,009.598861'. 700

3.444,5651,657,852

329.125791.899222,327

1,817,512

17,851.58316.06

231,800

Over 55,000 to $10,000.

Pieces.

1153253858

115103349169435034

178

1,577

99

Amount.

$1,0-15.7982,957,956

314,998475.094989,998833,921

3,182,3501,5«l. 167

377,016422,954234.521

1,459,224

13,874,99712.5

886,462

Over $10,000. j

Pieces.

8447123t)05081

290141364223

161

1,462

1:192

Amount.

82. 892.92635,895.3153,660.3642. 754,253lj 248', 4182,207,718

11.459,186*', 893,9281.460,6741,443.305

404,1814,438,731

72,758,99965.61

2,569,082,189

Total.

Pieces.

9702,314

824489

1,0611.0602,9361,100

619757332935

13,397

1.341

Amount.

85.741,42944,526.1115.102.4194.079,6203.907,0094! 546'. 352

19,748,5028 585.7472^581,4193.109.5941,000,7387.976,463

110.965.403100.00

% 570,. 200.. 451

Bills discounted during the month of October, 1917 and 1916, and ttte 10 'months ending October, 1917 and 1916, distributedby classes.

\ Member banks' collateralnotes.

Federal Reserve Bank i Secured by i! Liberty bondsj or U. S. certif- ji icates of in-• debtedness. ;

Otherwisesecured.

Boston ; $2,457,700 INew York I 2,152,680,000 !Philadelphia. .ClevelandRichmond....AtlantaChicagoSt. LouisMinneapolis...Kansas City..DallasSan Francisco

3,002,50012,885,000 j1,449,500 j4,744,000 I

44,592,000 i9,411,000 ;5,076,900 '

15,864,0005,750,2504,562,000

Total, October, 1917 j 2,262,474,850

Total, October, 1916Total, January-October, 1917Total, January-October, 1916

83,586,840185,687,0008,714,8119,331,50019,745,0007,683,000

31,889,4627,875,000

* *25,"i52,*334"4,910,6542,850,000

Trade ac- Commodityceptances. ' paper.

$333,7101,121,773184,701601,687214,403417,228

$25,000

299,98159,819399,020109,270700,669

2,076,3024,358,327,4013,487,152

307,725,601 | 4,442,261

414,90015,168,4993,256,000

186,6501,146,633

218,619

1,659,491

2,921,1008,679,26714,949,500

Allotherdiscounts.

$5,407,71943,404,338 !4,892,7183,477,9333,505,9562,982,491

19,748,5028,203,1772,521,6002,710,574

951,4687,057,175

104,863,651

6.450,598487,908,255104,557,748

Total.

$11,785,9692,382,893,111

16,819,73026,296,12025,101,50916,973,35296,229,96425,871,7477,658,31944,425,92811,721,64215,388,463

2,681,165,854

11,862,9004,870,083,422126,250,400



Amounts of discounted paper, including member banks collateral notes, held by each Federal Reserve Bank on the last Fridayin October, 1917, distributed by classes.[In thousands of dollars; i. e., 000 omitted.]

Banks. Agricul-tural paper.

BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis..Kansas City...DallasSan^Francisco.

W-y-" Total....Percent

$6734012

1,192670

2,221154

1,125320838625

Live-stockpaper.

416

30640156

1,2252,0962,039182

7,2.0

6,0641.5

Commer-cial and in-

dustrialpaper.

$8,07038,9426,2694,4796,2994,21816,79410,2173,2411,7641,0517,721

109,08527.4

Member banks' col-lateral notes.

Secured byLiberty

bonds orU.S. certif-icates of in-debtedness.

156,5601,2572,160679

2,16021,9935,6423,6407,5873,2423,400

208,96552.6

Otherwisesecured.

S62917,3612,6762,9052,6934,08311,1255,525

All otherdiscounts.

11,997 |2,282 j1,646 ;

62,92215.8

31,523

3844189

25 I

2,8040.7

Total.

310,873213,62410,2429,59811,32011,52852,17321,7199,23123,7649,45013,574

397,094100.0

Distribution, by sizes, of bills bought in open market by all Federal Reserve Ba/nhs during October, 1917, and the 10 monthsr Octending October, 1917 and 1916.

To 35,000. To 510,000.

Acceptances bought in open market.

Banker's acceptances.Trade acceptances

Total, October, 1917.Per centSeptember, 1917August, 1917July, 1917Juno, 1917Mav, 1917April, 1917March, 1917February, 1917January^ 1917

Pieces. Amount.

1,74540

1,785

Total, 10 months ending October, 1917.

Total, 10 months ending October, 1916.

1,7081,1531,6802,2971,305

7483S9819390

12,274

3,789

3,392,215149,648

3,541,8634.1

3,753,4733,631,6184,392.4926,05314193,571,3841,589,086

876,5062,175,6391,023,210

30,608,690

11,110,586

Pieces. Amount.

77646

954864851

1,497890270175777483

7,583

3,654

56,385,035396,595

6,781,6307.8

7,930,9277.108,2536', 097,59211,774,4817,024,7532,147,3801,381,029(5,324,0181,706,009

To 825,000. To §50,000.

Pieces. Amount. ! Pieces. Amount.

1,47529

1,504

1,8931,1641,3552,6411,580647363

1,248300

58,270,132 ! 12,695

$28,622,639499,253

4617

29,121,89233.5

34,648,57021,217,33526,495,82246,144,28827,835,02513,231,0926,970,40622,307,9625,238,206

672426256793442257171401152

233,276,598 j 4,038

29,822,811 I 4,878 I 83,554,624 j 1,344

820,117,296234,608

20,351,90423.4

29,109.17218,089,97810,722,80734,140,65218,681,74611,003,1207,185,12516,483,9746,898,412

172,066,890

55,576,822

Acceptances bought in open market.

To 5100,000.

! Pieces.

Bankor's acceptances..Trade acceptances

2393

Total, October, 1917..Percent..

242

September, 1917 279August, 1917 180July, 1917 152June, 1917 1 306May, 1917 181April, 1917 ! 87March, 1917 ! 86February, 1917 ! 180January, 1917 1 48

Total, 10 months ending October, 1917 j 1,747

Total, 10 months ending October, 1916 566

Amount.

819,650,679170,976

19,821,655

23,15,12,26,15,7,0,15,3,

317,006008,823643,409300,940377,503155,097801,912273,481891,515

146,497,341

47,868,141

Over 5100,000.

Pieces. Amount.

42

42

$7,275,238

Total.

Pieces. Amount.

4,738125

405

229

7,275,2388.4 !

10,287,3187,066,7956,511,943

10,809,91710,098,0856,186,816 I4,930,6608,012,1051,859,768

4,8

5,5593,8374,3287,5974,4442,0471,2093,4741,384

73,038,645 | 38,742

42,743,391 14,460

1885,443.102»1,451', 080

86,894,182

109,046,46672,122,80260,864,065

135,229,69782,588,49641,312,59128,151,63870,637,17920,617,180

713,464,296

270,676,375

Percent.

98.31.7

100.0

1 Of the above amount, banker's acceptances totaling $71,275,629 were based on imports and exports and $14,167,473 on domestic trade trans-actions.

2 Of the above trade acceptances, $1,353,580 were drawn abroad on American importers and indorsed by foreign banks and §97,500 were basedon domestic trade transactions.


DKCEMRKU 1, 1917. FEDERAL RESEKVE BULLETIN. 979

Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Board,or as reported by the Federal Reserve Banks on dates specified, distributed by classes of accepting institutions.

Banker's acceptances.

Date.Member ibanks.

I

I Non member ! Nonmcm-trust bar State

companies. banks.

1915.Feb. 22 !Apr. 5 1May 3June 7July 3Auk. 2Sept. 6Oct. 4Nov. 1Dec. 6 :

1916.Jan. 3. . .Feb. 7. .Mar. 6..Apr. 3 . .M a y l . .June 5..Julys..Aug. 7..Sept. 4.,Oct. 2..Nov. 6..Dec. 4..

1917, IJan . 1 iFeb. 5 !Mar. 5 |Apr. 2 . . . IMay 7June 4 !July 14-16 !July 31 jAUK. 15 |Aug. 31 !Sept. 15Sept. 29Oct. 35Oct. 31

893.0003,653,0005,038,0005,242,0004,342,0005,350,0006,087,0009,000,0008,477,00012.311,000

15,494,00015.C.81.00017',] 82; 00021,000,00024,875,00024, (580.00032,989', 00039,(505,00041.413,00037; 798,00037,770;00047,748,000

66,803,00050.361,00053;288,00043,979; 00049.192,00069; 262.000108,597', 000112,433,00085,148,00094,597,000ios; 111,000131,997;000127,94.2; 000150,301,000

!

Privatebanks.

Foreignbank

branchesand agen-

Total.

37,820,0008,189,0004,516,0005,267,0005,407,0006,305,0004,898,0004,331,0005,172,000

7,160,0007.875,000s; 670; 00013,573,00015,400,00017.029,000IS, 921,00019,060.00020,356', 00021,782,00029,474,00033,232,000

34,625,00023,511,00032,51 Si 00020,328', 00019,650,00027,011,00030,390,00043,107,00038,087,00033,273,00028,406,00014,987,00015,356,0003.147.000

$10,00010,00010,000

20,00020; 000132.000253; 000275,000

362,000336,COO408,000 ,473,000 !585,000 I644,000 I471,000738.000726,000712,000

1,014,0001,630,000

1,502.000972; 000

1.090,000'689,000236.000584.000

3,333;0002,564,0002,377,0002,312,0002;431,0002,193,0001,840,0001,307,000

."5110,000 1110,000 :192,000161,000352,000472.000343; 000 i204,000 ,396.000 i

822,000 i1,456,000 ! •1,781,000 !3,262,000 ;3,430,000 i7,007,000 j11,830,000 !13,940,000 !12,491,000 !9; 944,000 !12,147,000 !16.069,000 ! •

18,224.000 '13,775', 000 I20,581.000 :16.830,000 •19; 177,000 !21,077.000 i38.082; 000 J20,782,000 I14,137,00018,086,00021,118,00021,708,00022,931,00021,083,000

8140,000354,000200,00094,000239,000

3,805,0001,087,0001,345,0001,369,000.1,329,0002,286,0001,471,0002,153,000

$93,00011,593,00013,347,0009,960,0009,770,00011,129,00012,884,00014,373,00013,265,00018,154,000

23,838,00025,349,00028,041,00038,308,00044,290,00049,360,00064.211,00073; 433,00074,986,00070,238,00080,405,00098,679,000

121,154,00088,759; 000107.837,00082,026,00088,349,000118*773,000184,785.000179,973,00nj 40.894,000149; 637,000161,145,000173,171,000169,540,000177,991,000

Trade ac-ceptancesbought in

openmarket.

Total ac-ceptances.

I

8489,000462,000722,000

1,477,0002,208,0003,422,0004,225.0003,673,0002,306,0002,378,0004,487,000

4,585,0004,041,0002,535,0001,144,0001,679,0003,022,0004.660,0004', 242,0002,300,0004,952,0007,246.0006,942;0008; 234.0006,224,000

393,00011,593,00013,347.0009,960;0009,770,00011,129,00012,884,00014,373,00013,265,00018.154,000

23,838,00025,838,00028', 503,00039.030,00045; 767,00051,568,00067,633,00077,658,00078,659,00072.542,00082; 783,000103,166,000

125.739,000

92;soo;ooo; ;110,366,00083,170,00090,028,000121,795,000189.44o.00018^215,000143,194,000154,589,000168,641,000180,113,000177,774,000184,216,000


980 FEDERAL BESERVE BULLETIN. DECKMBBU 1,1917.

Amounts of hills discounted and acceptances and warrants bought by each Federal Reserve Bank during October, 1917,distributed by maturities.

15-day maturities.

Banks..Discounts. ! Warrants.

Boston 86,770,804New YorkPhiladelphia iCleveland \Richmond iAtlanta IChicago •St. Louis |Minneapolis ;Kansas City iDallas. . . . / !San Francisco I

Total.Percent

21,964263,965673,000

2,359,046,667 ! §336,15111,962,12322,775,90521,490,55013,236,27480,684,92918.419,492o,120,61541.639,05710; 682,7049.609,799

111,000

50.00017; 185

2,601,438,919 : 1,473,265

Banks

| 60-day maturities.

Discounts. I Acceptances. Warrants.

Boston j SI, 274,929 INew York..Philadelphia |Cleveland.

"IRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco

Total 25,177,758Per cent

5,802,649716,249 i

1,467,251 |1,606,785 j1,590,045 i0,783,293 j1,730,5831,110,637

826,044303,531

1,923,702

Total.

556,770,8042,359.382,818

li;962,12322,797,86921,754,51513,909,27480,684,92918,419,4925,231,615

41,639,05710,732,704

9,626,984

30-day maturities.

iDiscounts. | Warrants.

i

2.602,912,18494.0

$770,2043,359,466

509,485949,270 i713,285 !964,005 I

3.841,465 i3'. 486,396 !

'617,798 |373,504 !

66', 742 i1,863,551

861,3,016,1,175,

8902.557,

'978,

Total.

310,000

1,400,280,

8831,6296,375,5871,684,8761,840,2093,270,6841,942,0623,841,4653,486,396' 927,798373,504

000 ! 1,466,742672 " | 2,144.22:?

17,515,171 10,670,004 | 28,185,175.-.! 1.0

90-day maturities.

Total. Discounts. Acceptances. Warrants.

8725,915 i10,349,813 ! 8505,823

540 876 !1,357,963 |491.853 :...862;500 !

115,00014, 775

2,821,632510,129

17,790,456 . 505,823

82,000,84416,658,2851,257,1252,825,2142.098,6382,458,5456, 783', 2931.736; 5831'. 255,637' 840,819

3,125,1632,433,891

44,317,1931.6

52,389,172 j14,684,329 •3,629,448 I1,100", 987 !1,276,167 i1,083,456 !

4,138,169 i2,186,082 i

606,235 i1,260,034

337,863 ;

1,971,127 :

84,219.46036,605; 0102,429,4934,865,7401,507,500

957,0022,714,170'173,796

15,76062S,865297,825

Total.

34,663,069 ! 54,414,021 I 170,132 j

86,608,63251,289,3396.068,9415;966;7272.783,6672,185!4206,852,3392,359; 878

621.4051,27f>; 794

960,7282,208,952

89,217,8223.2

Over 90-day maturities. Total. Per cent.

BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis...Kansas Citv. . .DallasSan Francisco.

Total.Percent

Dis- ;counts.

Accept-ances.

War-ranis. Total. War-

rants. Total. ! Dis-! counts.

S580,860 ; 8033,928

2,4252,70714,722 i93,572 '

419,420 i225,060 !800,000 i

S510,701

782,108 i43,194 •

173,034 i327,289 !330.802 :20; 221 I

467,428

.181,214,788 |! 510,701 |2,

.| 421.845 j 'J 227; 767 I.! 814,722 !.! 93,572.1 1,249,536,! 43,194.1 173; 034 II 327,289 !

.: 330.802 !,j 2O',224 ;

811, 785,.382,893!

!6819;

969 \$o,i l l !o0.

I h26,2^6,120! k'2r>,.10,

16,973;96,229!25; 87l!

7,658;44,425,11,721.15,388'

509 i 5;352 i 3,964 ; 3;747 '' '319928642463

010,728307,095565, .180361.666620,717470,559181,598 : . .173'. 796 I..r>;j6;ooo [

30,535 :..900,497 L.105,811 '..

! $17,426,697 i,016,52-1 12,434,216,730 I

10,000 i 21,394,910 j! 33,657,786 !! 30,722,220 j

144,962 ; 20,588,873| 99,411,562I 26.045,543

15,170 ! 8; 209,489 I' 44.456,463 i

16i622,13916,494,274

.!

2,370,937 ! 2,545,836 ; 510,701 : 5,427.474 ;2,681,165,854 186,894,182 i! i 0-2 I : ;

Accept-; War- !ances. j rants. : Total.

67.697.978.678.181.782.496.899.393.399.970.593.3

32.42.1

21.3 ; 0.121.9 i18.316.9 .73.2

.7 !6. 5 .2

.129.5

6.7

100.0100-0100.0100.0] 00.0100. C100.0100.0100. 0100.0100. C100.0

1,186,656 12,769,246,692j IOO.O j

96.8 3.2 ! ! 100.0


Disc EMBER, 1 ,1917. FEDERAL RESERVE BULLETIN. 981

Maturities of discounts, acceptances, and municipal warrarrfs held by each Federal Reserve Bank on Friday, Oct. £6, 1917.

[In thousands of dollars; i. e., 000 omitted.]

BostonNew YorkPhiladelphia...ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis...Kansas'City.. .DallasSan Francisco.

Total.Per cent

BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis...Kansas Ci ty . . .D a l l a s . . . . ; . . . .San Francisco..

Total.Per cent

Banks.

Banks.

1 to 15 days.

Bills dis-counted.

4,429186,2515,2946,4265,7908,04434,65614,5935,13220,6236,6868,146

306,070

Accept-ances

bought.

196

38,121

Municipalwarrants. Total.

8,625199,917

9,28711,9306,9559,088

37,26516,1825,972

21,5318,1949,245

344,191

31 to 60 days.

Bills dis-counted.

2,6158.789

8401,9522,7131,4875,6183,8931,9751} 1811,1172,116

34,296

Accept-ances

bought.

13,67336,8354,1625,7111,472289

1,3563825025

2,361902

67,218

Municipalwarrants. Total.

16,28845,6245,0027,6684,1851,7856,9744,2752,0251,2063,4783,018

14 101,528. . . . ! 17.7

16 to 30 days.

Bills dis-counted.

1,8545,056632488

2,1651,2687,4752,1931,097891887

2,401

26,407

Accept-ances

bought.

1,6489,2581,3803,823837800185396897304

3,9781,977

Municipalwarrants.

25,478

Total.

3,49714,3142,0124,3113,0022,0707,6602,5891,9941,1954,8654,378

51,8879.0

61 to 90 days.

Bills dis-counted.

1,97513,5283,467731643651

3,6561,009892637374873

28,436

Accept-ances

bought.

4,53428,8053,8223,0632,257642

3,5656110

24

46,783

Municipalwarrants.

76

Total.

6,50942,3337,2993,8012,9001,3067,2211,070

902637420897

75,28513.1

Banks.

Over 90 days. Total.

countedcountcd.Accept- ! Munici-a r i c « s i *)al wax"j b o u g h t < | r a n t S t

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco

I

Total.Per cent

919

7676831

135432

1,885

131

131

Total. Bills dis-counted.

20776831

13543238638

10,213

S123;

2.016.3

397,094

Accept-ances

bought.

24,04688,56413,35718,1015,7312,7757,7152,4281,7871,2377,8474,002

177,590

Munici-pal war-

rants.Total.

Billsdis-

counted.

155

233

34,919302,18823,60927,71117,05114,45659,88824,14711,02825,00117,34317,576

574,917100.0

Percentages.

32.170.743.434.666.479.787.189.983.795.154.577.2

Accept-; Munici-ances pal war- Total,

bought.| rants.

67.929.3 I56.6 i65.4 i33.6 I19.2 I12.9 i10.1 i16.2 I

1.1

100.0100.0100.0100.0100.0100.0100.0100.0100.0

4.9 i ..! 100.045.2 I 3 100.022.8 ! 100.0

30.9 I. 100.0


982 FEDEBAL KESERVE BULLETIN* DECEMBER 1,1917.

Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve Bankduring the months of October, 1917 and 1916, and the 10 months ending Oct. SI, 1917 and 1916.

Federal Reserve Banks.

PJoston ,Now YorkPhiladelphia...ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis —Kansas City. . .DallasSan Francisco.

Total, October, 1917Total, October, 1916Total, 10 months ending October, 1917.Total, 10 months ending October, 1Q1G.

Bills dis-counted for

memberbanks.

811,785,9692,382,893,111

16,819,73026,290,12025,101.50916,973', 35296,229,96425,871,7477,658,319

44,425,92811,721,642 j15,388,463

Bills bought in open market.

Bankers'acceptances.

579,994851,540565,180945,028020,717470,559181,598173,796536,00030,535900,497587,60S

2,681,165,85411,862,900

-!., 870,083,42212(5,250,400

85,443,10239,195,000590,487,615258,988.000

Tradeacceptances.

§60,734455,555

"416," 638'

518,153

1,451,0801,699,100

22,976,68111,789,400

Total.

So,640,72850,307,095•1.505,1807;361,666c,620,7173,470,5593.181,598

173,796536,00030,535

4,900,4971,105,811

86,894,18240,894,700

713,464,296270,676,400

Municipal warrants.

City.

$1,016,524

11,910

1,043,60410,030,30015,645,35575,233,500

State. Allother.

810,000

8133,052 I

133,0522,000

135,0923,656,900

10,000235,200681,498826,500

Total.

$1,016,524' 10,000

144,962

"i5,'i70

1,186,65610,267,50016,461,94579,716,900

Federal Reserve Banks.

BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. Louis -Minneapolis...Kansas City. . .Dal las . . . . . ' . . . .Sanlfranoisco.

Total, October, 1917Total, October, 1916Total, 10 months ending

October, 1917Total. 10 months ending

October, 1916

United States bonds and Treasury notes.

2 per cent. 13 per cent.

$2,100

35 per cent.

815,050

100134,000

1,2001.000

1,000 I.

62,000

13,997,200

37,481,250

3,1005,060

186,540

10,000

10,750

173,300

44,325,710

3,647,880 |.

4 per cent.

825,000

1,250

3,400

29,650

63,900

4,153,000

1-yearTreasury

notes.Total.

Total investment operations.

October,1917.

3955,000 I $995,650

405,000 j

8,000

408,200134,600

2,4509,000

1,00010,0003,400

10,750

1,309,000 ! 1,575,050

250,000 I 257,060

7,059,000 I 65,032,350

300,000 45,582,130

§17,426,697,435,212,380

21,394,91034,005,98630,850,82620,591,32399,420,50226,015,5438,210,489

44,466,46316,025,53910,505,024

2,770,821,742

5,005,642,013

October,1916.

Octo- iOcto-ber, I ber,1917. ! 1910.

82,899,16,640,7,409,5,676,2,082,5,347,5,131,3,004,3,210,1,702,1,559,7,295,

13,282,100

522,225,830

!Per \cent, j

0.0 !87.9 |

.8 !1.2 !1.1 i.8 !

3.0 i

: ! !X1i

Percent.

4.620.311.88.94.2S.58.15.85.12.72.5

11.5

100.0 i; 100.0

United States securities held by each Federal Reserve Bank on Oct. SI, 1917, distributed by maturities.

United States bonds with circulation priv-ilcge.

3 per cent i 4 per centloan of i loan of

191S ] 1Q9--11J18. j lHzo.

United States securities without circulation privilege.

Boston 8750New York | 50 jPhiladelphia jCleveland 6,400 |Richmond j 915,100 jAtlanta ! 6-10,600 jChicago I 1,802,500 iSt. Louis ! 100 iMinneapolis j 323,050 jKansas City..DallasSan Francisco..

7,155,850 i2,450,900 i2,428,750 !.

S100467,200237,00021,000307,300

'"io'206'22,240

281.500

850,000 I

' 653," 060 "|$2," 378," 266"

2,581.000 | 1,708,000

l ' 199 180 ;" "266/256': 825,000

Total jlo, 78-1,050 jl, 412,000 j 7,503,840 j 5,177,450

8529,0001,255,500

549,200414,800

16,366'427,400

1,153,300114,800S38,500

1,233,000

3 per cent1-year

Treasurynotes.

82,19-1,0004,493,0002,548,0003,271.0001.909'000I', 491,0003,308,0001,444,0001,340,0001,784,0001,430,000

. . . | 1,500,000

6,526,400 126,832,000I

pjPnt 3i per centloan Yheny

f„/ Loan of1961. i » ' •

4 per I Unitedpent I States cer-

Libertyitiiicates ofLoan od indebted-

1942. ness.

$80,0001,532,750

1 1002,020,450

8492,000825,000 111,581,000

• 577,0004,406,000

395,0007,454,0001,057.000

349' 000871,000

i 120,0003,400 i 2,091,000

' 3,270,000

29,650 |32,925,000

Total.

83,295,75018,937,3003,075,40015,023,7103,559,2009,834,05025,431,0004,026,4004,071,04011,001,0407,492,8007,215', 500

114,224,390

Total United States bonds with circulation privilege, $29,937,940. Total United States securities without circulation privilege, 884,286,450.


DECEMBER 1,1917. FEDERAL KESEEVE BULLETIN. 983

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve Systeyn at close of business on Fridays,Oct. 26 to JSTov. 23, 1917.

RESOURCES,

jln thousands of dollars; i. c. 000 omitted.]

Bos-ton.

NewYork,

Gold coin and certificates invault:

Oct. 26Nov. 2Nov. 9Nov. 1GNov. 23

Gold settlement fund:Oct. 26.Nov. 2Nov.9 iNov. 16Nov. 23

Gold with foreign agencies:Oct. 2 6 . . . . .Nov. 2Nov. 9Nov. 16Nov. 23

Gold with Federal ReserveAgent:

Oct. 26Nov. 2Nov.9Nov. 16Nov. 23

Geld redemption fund:Oct. 26Nov. 2Nov.9Nov. 16Nov. 23

Legal tender notes, silver, etc.Oct. 26.... '.Nov. 2Nov. 9Nov. 16Nov. 23

Total reserves:Oct. 26Nov. 2Nov.9Nov. 16Nov. 23

Bills discounted—members:Oct. 20Nov. 2Nov. 9Nov. 16Nov. 23

Bills bought in open market:Oct. 26Nov. 2Nov.9Nov. 16 !Nov. 23 j

United States Government jlong-term securities: i

Oct. 26 !Nov. 2 |Nov.9 .1Nov. 16 !Nov. 23 ;

United States Government \short- term socuri ties: !

Oct. 26 1Nov. 2 |Nov. 9 |Nov. 16 !Nov. 23

Municipal warrants:Oct. 26Nov. 2Nov. 9Nov. 16Nov. 23

27,5-16 j29,54733,25139,94631,698

22,04719.68712', 72111,1046,016 !

3,675 I3,675 i3.075 !

3'. 6753; 675

35.37137', 53936,18231,69230,461

1,000992

1.000l'.OOOr,ooo !4,037 i4,3685,4415,0465,362

93,67695,80892,27092;46378,212

10,87311,99511,48836,28637,574

24,04623,48328,74228,43730,234

610610610tilO610

2,6862,6862,6802,5362,456

281,218308.420309', 258321,188333,776

36,496111.39890)84667,14028,666

18,11218,112.18,11218,11218,112

187,224177.432177'. 146174;325174,058

5,0005,0005,0005.0005; 000

40.2764i;13442,13442,36642,658

508,326661,496642,496628,131602,270

213,624277,754298.963223'297351,111

88,56470.86924)51831,22050,340

Phila-del-

phia.

17,62318,67820,07720,57621,106

38,04329,94140,38937,23240,511

3.6753)6753,6753)6753,675

21,65730,55029,40130,64729,073

52,36839,13830,70645,41950,490

4,7254,7254,7254,7254,725

Rich- I At-mond. j ianta.

48.220 i 47,71551,749 ; 44,22349,785 j 47,01450,529 ! 46,19250,644| 18,121

950 12950 35950 21950 i 52950 j 31

7C0 352873 482767 i 473858 • 500

1,023 • 679

109,271! 105,866! 115,6431113,8201117,909

2,4262,3022,2732,0442.180

16,0746,074 !6)074

156,07226,122

1,0171)0171,0171,017

10,24211,3219,28716,04622,914

13.35717)24026,19025,85925,604

55055055055C550

3,128 i3)065 I3,062 j2,8602,858 !

1126,829119,1535112.343127)535 i

1133,119 j

'i 9,598 Ii 12,630 !

14,223 I! 25,386 Ij 30,149 I

I 18,101 !I 29,686 I! 36,302 ji 34,444 I! 31,082 {

i7,947 I7,697 i7,097 I8,178 I8,053 I

i3.6933) 7373,5143,5294,824

6,2196,0926,1236,2036,144

30,39438,75136,13935,24040,417

1,8371.8371'. 8371)8371,837

23,72928,61432,06131,99731,940

715664639615594

157179182193158

68,05176,13776,98176,08581,090

11,32011,4719,08610,77516)023

5,7316,39911,74012,19112,937

6,1755,7945)7795,7995,551

3,8593,6509,5489,411

13,545

1,5751,5751,5751,5751,575

40.05839)02736,90439,89243,851

540585667535573

248281269282305

52,45550,91254,74257,49465,400

11,52611,87712,32010,15712,053

2,7754,2954,3955,595 !4,727 I

10 i10110 i10144 i

1,2061,3611,3481,3461,311

2,3642,3642,3642,3642,364

Chi-cago.

35,270 i35.904 I36)377 !35,076 i33,900 !

72,84252,95868.78567) 00772,007

7,3507,350

4,7725,1995)2995.4265)362

21,15819.80122)20521,92325,640

2,1002,100

7,350 j 2,1007,3507,350

81,37274,37186,23198,47481,692

391398411431462

1.8161)6091,1831,4992,162

199,Oil172,590200,337209,837197,573

52,17369,30563.58476.81397)805

7,7157,6965) 7005,6245,949

2,1002,100

27,07530,05933,37538.35938)847

768766702758754

Minne-apolis.

KansasCity.

17,878 i 5,44816,622 6,35415,060 " ~~"14,06914,234

613 !695695606614

56,'18058.62064)43069,17273,317

5,3704,58010.87114)07015,894

2,1002,1002,1002,1002,100

35,62532,49129.47729)35329,325

393511594589595

322321310315310

01,68856,62558,41260,49(562,458

9,23114.59113)45013,47510,262

1,7811,97611,357

: 10)537; 9,044

i

5,9885,6073,988

38,48020,84625,64620,50830,443

2,6252.6252)6252.6252'. 625

Dallas.

12,22512.19712)20612,23812,531

15,67917,05913,57915.60327)504

1,8381,8381,8381,8381,838

SanFran-cisco.

25,08225'. 95428)58130,01732,682

I 27,231I 20,706i 24,289' 19,053! 35,529

2,8882,8882,8882,8882,888

I

893 i 21,007 I589 ! 21,007889 21,007 I

! 21,007 Ii 21,007 2:233

898 !

i

2.233 i 1,8002)233 I 1)8602 233 I * "'""2)233 ;

i i

1,8601,8G01,860

8,945 ;9,250 19,151 '

4,9484,0003,585

7,060 ! 3,4045,383 i 3,779

155 !157163 !163 I278 j

1,793 !1,793 i1,793 !1,693:1,693

3,0372,1832,1831,8191,810

1025252525

30.62030)31430,28730,20930,186

51751551.5515514

45696259 i37 I

77,735(30,72365,12359.o2367)793

23,70431,97535,02431,90033,122

1,237 i' 5.9475)3404,9514,530

26,30326,48527,77227,75729,039

818 I870 !89S !965 I

1,035 |

493 |522505588528

57,38658,97056,79858,98972,47o

26,38030,12930,02031,12735,784

3031391041

387 i211 I187 I213 I222

: 81,998! 79', 9.19i 86)00-1| 83.308! 107)146

9,4"»0 .10,535 i10,21110,4238,375

7.8477)40711,59510,37210,818 •'

13.574 ,15)030 !10,370 I10,1.11 i18,080 j

4,002 :

8,9388.769

17)17416,848

2,2102,2101.7842)2102,222

2,2522,8022,2852,8242,054

4646464(146

Total.

401,113501,311507,403526,792530,045

363,967378,514385,724303,710386,662

52,50052.50052)50052,50052,500

614,692602,433616,254629,906023.948

11,16411,31711,49611,42011,549

49,50650,74452,208•52,52554,058

1.552,9-121'. 590'. S191'. 025) 5S51)036,8531) 058,762

397.094503)905510,154487,850056,002

177,590180,012ISI',001193,809209,905

8.853 3,972 i 2.519 !8)851 3,972 I 2)519 !8,849 3,972 ! 2,455 !8.849 3)972 j 2,455 ]

8)849 i 3,972 ! 2,440 i

4,740 I4,987 I3,880 I1,533 I1,085 I

54,10053,85153,74354,00253,902

55,87645,21142,367187,90457,850

2331,2071,2731^2731,422


984 FEDERAL RESERVE BULLETIN. DBCBMBJBR 1,1917.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays,Oct. 26 to Nov. 23, 1917—Continued.

RESOURCES.

[In thousands of dollars; i. e. 000 omitted.]

Due from other Federal ReserveBanks, net:

Oct. 25Nov.2Nov. 9Nov. 16Nov.23

Uncollected items:Oct. 26Nov.2Nov. 9Nov. 16Nov.23

Five per cent redemption fundagainst Federal ReserveBank notes:

Oct. 26Nov.2Nov.9Nov.16Nov.23

All other resources:Oct. 26Nov.2Nov.9Nov.16Nov.23

Total resources:Oct. 26Nov.2Nov. 0

Bos-ton.

3. I l l2; 504

17,452

18,59817,18315,98330,70816,222

NewYork.

Phila-

2,520

| Clove-

6.4975; 365

9,5144,641

55,21681,00065,57080,12760,973

32,88534,36434,05847,89830,636

11,2691,7886,42610,3902,831

18,19917,73717,03936,45421,706

153,600154,269!lol,779

Nov.16 1208,492165,308Nov. 23.

944,230 175,940 1195,6481,100,512 177,781 J132,446' "•" — 188,800 1197,5561,043,4311,121,9081,103,527

211,684 !245,928200,515 1231,776

Rich-mond.

At-lanta.

Chi-cago.

2,036 ! 1,114228 I 1,749

3,189 I 1,973i 1 7 1

19,26617,50516,37922,07917,121

17,89320,11617,70030,40920,613

14135

108,691118,076119.719136)500134,973

6,851

6,15010,109

37,15142,02735,54870,77544,022

St.Louis.

6, 0024,6661,6832,981

100 :.148 !.62 i.

139 I100 !.

L97,229 1322,03596,782 1323,53698,101 1329,761

105,558 393,708106,730 380,244

19,87319,08417,41627,06716,898

345426

1,5472,0691,470

111,079113,713111,103129,861120,731

Minna- Kansas Iapolis. I City. Dallas.

2,51211,006

9801,9232,001

6,7561,3809,988

10,01714,69510,35118,33011,690

524670797

90.666104,23199.421109,350100,730

17,55116,10216,80335,90124,410

400400400400400

2,263 !728 I241 I286 !

170

135,445132,964134,873153,722150,021

15,62919,54413,40015,02617,277

137137137137137

122127301404599

SanFran-cisco.

6,3958,4898,99517,772

896

19,39918,54411,54913,77020,957

63217112

109

99,104 132,696104,328 1139,24398,986

102,479116,353

138,146152,123168,161

Total.

' 6,896114,385

1 1,725117,8381 11,872

281,077317,901271,796428,544302,525

537537537537537

1,3541,5882,9893,7363,293

2,528,3652,721,5342.697,1703,012,4062,956,130

LIABILITIES.

Capital paid in:Oct. 26Nov.2Nov.9Nov.16Nov.23

Government deposits:Oct. 26Nov.2Nov.9Nov.16 1Nov. 23 1

Due to members—reserve ac- Icount: I

Oct.26 !Nov.2 iNov.9 1Nov.16Nov.23

Due to nonmember banks—clearing account:

Oct. 26Nov.2 . . .Nov. 9Nov.16Nov. 23

Collection items:Oct. 26Nov.2Nov.9Nov.16Nov. 23

Due to other Federal ReserveBanks—net:

Oct. 26Nov.2Nov.9Nov.16Nov.23

5,4675,4675,7015,7015,701

12,8236,528359

42,2567,292

74,59278,523f7,17787,64778,715

12,24312,49412,51618,42014,311

15,23616,73316,84817,67518,028

15,59149,8197,3033,48531,292

528,035632,111633,364657,133657,097

25,28714,40924,36211,33110,973

32,53749,35144,25151,19652,094

36,426

5,2735,2845,5845,5905,590

8,3136,9652,03919,2674,227

6,4606,4786,7436,7436,751

15,1579,8995,89546,01728,563

3,4773,4773,5673,5853,585

8,53515,120

23,872| 12,220

73,634 | 98,754 40,79972,868 ; 98,447 40,55380,769 1103,998 45,10483,991 1101,442 j 44,32482,623 1104,785 | 42,257

28,69329,07230,34931,93427,285

390 :'.609 I.590 L129 I.78 j.

13,70913,68012,09420,94016,815

12,83114,69213,79715,97116,469

2,5952,5952,6352,6352,665

5,8664,8695,0424,6733,196

32,22632,32831,08333,49834,673

10081

8,0488,0478,0558,5498,603

17,54518,2243,19925,36740,674

156,951157,244165,717183,756159,931

5,7495,1784349137 I 4,349

72 I 5,911485 | 5,984

10,895 I 19,9458,885 I 19,3308,222 *"* "*"10,8709,137

23,10938,88927; 807

1,572

3,3053,4433,4433,4443,444

7,2451,63614,4381,705

46,53747,81448,84448,56246,682

181946482

12,96014,12913,96416,07313,592

2,5792,5792,5812,5812,581

5,01315,1397,08514,5597,132

39,58742,02841,75342,91741,271

39107

3636

4,2094,5164,7465,2524,614

3,3723,3723,3723,3723,372

10,7468,8064,42011,39312,753

67,61266,85871,25174,968

22222

10,96210,0279,97713,69512,162

2,7832,7832,7832,7832,783

8,74812,8756,2273,32411,048

38,85439,78540,57843,45046,395

6,1055,6645,1176,4516,915

4,0344,0334,0334,0334,033

14,19620,42312,13010,236

66,74263,46467,34478,81062,330

3,7614,0034,4003,3984,251

9,4039,9718,88010,74613,968

64,29165,34566,69167,136

132,221175,91259,198218,887196,411

1,264,3231,372,0231,406,9821,480,4981,426,648

35,33524,31033;86620,92522,291

174,492191,811187,022240,437215,169

36,347

"58,* 907'3,020

*i,*086

3,498 6,304 55 I 1,6

3,' 894" I."!!".*!!"7,093 9,063 1,8

* Difference between net amounts due from and net amounts due to other Federal Reserve Banks.


R 1, 1917. JEDEEAL RESERVE BULLETIN. 985

Resources and liabilities of each Federal Reserve Banh and of the Federal Reserve System at close of business on Fridays,Get. 26 to Nov. 23, 1917—Continued.

LIABILITIES—Continued.


Bos-ton. York.

i Phila- :i del- 'i phis. ;

Oleve- jhind. ;

Rich- j At-mond.! lanta.

Federal Reserve notes in actual jcirculation:

Oct. 26 i 47,932Nov. 2 ; 50,644Nov. 9 i 52,347Nov. 16 i 53,805N ov. 23 j 57,604

Federal Reserve Bank notes in |circulation, net liability: j

Oct. 26 iNov. 2 'Nov. 9 :Nov. 16Nov. 23 !

All other liabilities, includingforeign Government credits:

Oct. 26Nov. 2Nov. 9Nov. 16Nov. 23

Total liabilities:Oct. 26Nov. 2Nov. 9Nov. 16.

288,798 ! 59,613 60,898299,263 ! 63,155 ; 63,074314,807 j 66.076 : 67,876319,481 j 70:429 • 70,432331,167 73;151 74;687

42,89644,07146,96948,74851.379

45,54748,02450,92753,8.1056,574

Chi-cago.

St.Louis.

Kansas j Minne-City. ! apolis.

I

112,144 j 38,582115,494 ! 41,064123,573 i 43,197131,236 j 47,298137,024 I 50,932

39,23939,95943,24944,00545,096

2,320 •2,479 .2,496 •2,700 :2,876 i

414 !437 j485 j473 i546 !

ISO259360225

87

153 :163115

8119

130

153,600154,269151,779208,492

I 944,230 175,94011,100,512 1177,781;1,043,431 1188,800l 1219— " " "" '

135,648 j 108,691""' 118076192,446197,556

,118,076119,719-~" —

Nov. 16 208,492 jl, 121,908 211,684 245,928 136,500 ::Nov. 23 |165,308 11,103,527 200,515 ;231,776 ;134,973 j:

97,22996,78298,101105,558106,730

221

322,035323,536329,761393,708380,244

34,58335,68337,85142,01843,599

8,000 I.8,000 !.8 000 !.8,000 i.8,000 I.

Dallas.

42,61443,22144,28146,47147,409

SanFran-cisco.

34,58037,34941,35944,85247,270

111,079113,713111, 103129,861120,731

168 !216 i

274 L244 •.

90,666 '135,445 I 99,104104,231 1132,964 1104,32899,421 [134,873 98,988

109,350 |153,722 102,479100,730 150,021 116,353

Total.

847,506881,001932,512972,585

1,015,892

8,0008,0008,0008,0008,000

3,8594,1864,245-4,3834,583

132,696 . 2,528,365139,243 ! 2,721,534138,146 I 2,697,170152,123 i 3,012,406168,161 i 2,956,130

48

FEDERAL RESERVE NOTES.Federal Reserve note account of each Federal Reserve Banh at close of business on Fridays, Oct. 26 to Nov. 23, 1917.

In thousands of dollars; i. e., 000's omitted.]

Federal Ileserve notes receivedfrom agent—net:


Federal Reserve notes held bybank:


Federal Reserve notes m actualcirculation:


Gold deposited with or to credit01 Federal Reserve Agent:

Oct. 26Nov. 2IN OV. SNov. 16Nov.23

j-gper delivered to Federal Re-serve Agcni:

Oct. 26Nov. 2Xov. 9Xov. 16Nov.23

51,25154,41955,65257,61261,381

3,3193,7753,3053,8073,777

47,93250.64452134753,80557,004

35,37137,53936,18231,692

315,224324,232342,946

63,32066,93970,355

64,21568,72371,514

349,525 I 73,959 I 73,692377,878 j 77,474 | 76,621

26,426 I 3,70724,969 j 3,78428,139 i 4,27930,044 I 3,530•16,711 i 4,323

288,79S299,263314,807319,481331,167

59,61363,15586,07670,42973,151

187.224 48,220177.132 51) 749177) MS ; 4J-) 785174.225 : 50,529

30,461 174,058 150,044

3,2173.0493) 6383,2601)934

60,99863,07467,87670,43274,687

Rich-mond.

At-lanta.

44,313 ! 47,06945,403 49,50948,94150,26753,811

1,417

52,30055,15857,758

1,5221,332 ! 1,4851,972 ! 1,3731,519 | 1,3482,432 ! 1,184

42,896 | 45,54744,071 I 48,02446,969 I 50,92748,748 i 53,81051,379 ! 56,574

I i47,715 i 28,729 ! 40,05844,223 | 23,6K = 39,02747,014 ! 32,061 ; 36,90446)192 : 31,997 ; 39,89248,121 ; 31.940 j 43,851

25,94930,957

180,842 : 23,43c i 27)584 ! 22,966 I 15,294234,763 ! 26)854 j 28,549 : 29,645 • 14,655

116,632120,831129,431139,174147,592

4,4885,3375 8587,93810,508

112,144115,4G4123,573131,236137,024

81,37274,37186,23198,47481,692

Louis.

41,32244,30645,37249,85654,844

2,7403,2422,1752,5583,912

41,06443,197

i 47,298! 50,932

I 27,075i 30,059

33,37538,359

i 38,847

Minne-apolis.

40,42141,28744,47345,34946,321

1,1821,3281,2241,3441,225

i 39,239j 39,959

43,249! 44,005| 45,096

35,62532,491

i 29,4771 29>353! 29,325

35,783 14,258 ! 8,88647,019 : 14,259 I 14,99143,788 12,036 I 22.07641,321 : 11,526 I 19)4306(3,530 • 16,016 : 16,475

KansasCity.

37,58039,79342,45645,58246,842

2,9974,1104,6053,5043,243

34,58335,68337,85142,01843,599

30,02030,31430,28730,20930,180

7,3809,50112,46215,63416,903

Dallas.

42,90643,75944,57046,91548,077

232538289444608

42,61443,22144,28140,47147,409

SanFran-cisco.

39,13444,08347,37451,53153,688

4,5746,7346.0156)6796,418

34,56037,34941,35944,852

Total.

903,387941,284995,384

1,038,6201,102,287

55,88100.28362)87206,08580,395

847,500881,001932,512972,585

26,38030.12930)02031.12735)784

26,30326,48527,77227,75729,039 | 35)784

17,287 i 13,07617,942 I 14,38521,80620,79519,164

19:79626)40531,870

614,692602,433616,254029,906623,948

303,704365,107439,202431,182532,411


988 FEDERAL RESERVE BULLETIN, DECEMBER 1, 1917.

Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Oct. 26 to Nov. 23, 1917.

[In thousands of dollars; i. e., 000's omitted.]

FEDERAL RESERVE NOTES.

Received from Comptroller:Oct. 26Nov. 2NOT. 9Nov. 16Nov. 23

Returned to Comptroller:Oct. 26Nov. 2Nov. 9Nov. 16Nov. 23

Chargeable to Federal ReserveAgent:

Oct. 26Nov. 2Nov. 9Nov.16Nov. 23

In hands of Federal ReserveAgent:

Oct. 26Nov .2Nov.9Nov.16Nov. 23

Issued to Federal Reserve Bank,less amount returned toFederal Reserve Agent forredemption:

Oct. 26Nov .2Nov .9Nov.16Nov. 23

Collateral held as security foroutstanding notes:

Gold coin and certificates onhand—•

Oct. 26Nov.2Nov.9Nov.16Nov. 23

In gold redemption fund—Oct. 26Nov.2Nov.9Nov.16Nov. 23

With Federa l ReserveBoard—

Oct. 26Nov.2Nov.9Nov.16Nov. 23

Commercial and bank paper,required minimum—1

Oct. 26Nov.2Nov.9Nov.16Nov23

Total—Oct. 26Nov.2Nov.9Nov.16Nov. 23

79,88080,88080,88080,88088,320

15,02915,06115,82815,86816, G19

6-4,65165,81965,05265,01271,701

13,40011,4009,4007,40010,320

51,25154,41955,65257,61261,381

30,59932,79931,50927,06025,859

2,7722,7402,6732,6322,602

NewYork.

532,760541,160560,960574,960590,480

108,016108,808109,094111,915112,182

428,74.4432,352451,866463,045478,298

111,520; 108,120i 108,920! 113,520i 100,420

: 315,224i 324,232i 342,946I 349,525: 377,878

i 177,082! 167,920: 157,920

165,460i 165,400

I 10,142| 9,512', 9,226• 8,885

8,598

2,000 !

2,000 !2,000 •2,000 i2,000 !

15,88016,88019,47025,92030,920

51,25154,41955,65257,61261,381

128,000146,800165,800175,200203,820

315,221324,232342,946349,525377,878

92,440 !92.440 !99,240 .101.960 i109/180 !

14,080 ;

14,96115,045 ••15,861 !15,946

Rich-mond.

At-lanta.

83,00084,60084,60097,880

7,8457,9378,1468,2488,319

60,10081,90065,600 ! 68; 300 ! 170^8068,700 ! 69,109 •' 184,12069,700 i 72,280 ! 191.720

59,980 ! 151,44064,980 j 155,320

St.Louis.

55,84055,84057,78061,380

14,107 j 9,801 !14.317 ! 9,881 [

U. 439 i 10,030 !14; 513 i 10,092 i11,669 10,132

4,908 I5,229 i5,709 !5,766 i5,828

7,4687,4847,9187.9347.945

78,360 76,15577,479 76,86384,195 I 76,45486,099 ! 89,63293,534 i 89,561

15,04010,54013,84012,140

10,9409,940 '4,940 .15,940 I

45,993 I47,583 I51,161 '54,18755,031

1,6802,1802,220

16,060 ; 12,940 = 1,220

50,17955,09956,27059,00862,148

3,1105,5903,970 ,3,8504,390 .

146,532 ! 48,372150,091 i 48,356164,771 '• ~"178,354

63,320 j 64,215 44,313 47, C66,939 ; 66,723 i 45,403 j 49,50970,355 ; 71,514 ! 48,941 ! 52,30073,959 j 73,692 i 50,267 I 55,15877,474 I 76,621 j 53,811 i 57.758

185', 892

29,900 ;

29,280 !35,340 !39,180 i38,300 I

118,632120,831129,431139,174147.592

49,88253,44657,734

4,2204,2204,2204,2204,220

3,3613,480

3,800

40,83944,04941,88942,42442,621

19,32110,88313,34112,59214,275

3,3943,3403,6733,6003,846

25,00030,00030,00030,00030,000

15,100 j 16,50015,190 I 22,50020,570 ! 24,50023,430 ! 27,50026,830 ; 28,500

63,320 i 64,21566,939 ! 66,72370,355 • 71,51473,959 ! 73,69277,474 i 76,621

3,579 !3,5783,604 I3,604 !

729614561497440

28,00028,00031,50031,50031,500

15,58416,78916,88018,27021,871

2,509 ! 444 !2,429 : 398 !2,280 I 332 !

2,218 i 2753,178 ! 213

7,0504,0504,4903,590

41,32244,30645,37249,85654,844

2,5132,5132,5132,5122,512 j

1,502 !1,488 i1,757 j2,042 !2,030

33,97033,02031,02034,07037,070

7,01110,48215,39615,266 I

80,92873,97385,89998,19981,479

35,26046,460 =43,200 !40,700 i

13,907 ! 65,900

. j 47,069 i 116,632 ,' ! 49,509 i 120,831 i

44,31345,40348,941 I 52,300 \ 129,43150,267 I 55,158 ! 139,17453,811 ! 57,758 j 147,592 ;

Minne-! Kansas |apolis. ! City. ;

i IDallas.

SanFran-cisco.

57,280 ! 56,72057,280 j 58,72059,480 ! 61,72059,480 I 64,74061,480 j 66,740

63,98064,18064.18064', 18067,540

8,589 i 10,460 ! 11; 2948,703 j 10,847 ! 11,4018,717 i 10,884 i 11,8008,841 ! 11,163 j 11,6159.069 ! 11,198 i 11,653

48,711 I 46,280 52.68648,577 47,873 | 52'. 77950,763 50,836 i 52', 580"" "~~ 53,577 52,565

55542 5588750,63952,411

8,2907,2906,2905,2906,090

40,42141,28744,47345,34946,321

13,10213,10213,10213,10213,102

2,0231,8891,8751,7511,723

55,542 55,887

23,060 ! 20,50026,060 ; 17,50029,10533,80534,305

14,247 I14,24711,997 i11,497 '15,997

14,50014,50014,500

4,7968,79614,99615,99816,996

41,322 ! 40,42144,306 i 41,28745,372 I 44,47349,856 45,34954.844 i 46.321

8,680 ! 9,780

7,995

9,0208,0105,650

8,700 7,810

37,580 i 42,90639,793 !

42,45645,582

44,57046,915

46,842 48,077

2,270 ! 14,480I 14,48014,480

1,9901,9541,9271,8491,826

14,48014,080

2,3492,3312,3182,4032,185

26,360 I 9,47428,360 ! 9,67428,380 I 10,97428,380 1 10,87428,360 12,474

6,9609,47912,16915,37316,656

37,58039,79342,45845,58246,842

16,60317,27416,79819,15819,038

42,90643,75944,57046,91548,077

44,46049,46052,82057,22059,420

5,3265,3775,4465,689 !5,732 j

Total.

1,337,6801,366,7601,424,0401,484,6001,540,720

214,903220,006222,856227,505229,293

39,13444,08347,37451,53153,688

39,13444,08347,37451,531

1,122,7771,146,7541,201,1841,257,0951,311,427

219,390205,470205,800218,475209,140

903,387941,284995,384

1,038,6201,102,287

1,9891,9381,8691,8261,783

24,39128,19128,15129,30134,001

12,75413,95417,35420,40417,904

39,13444,08347,37451,531

267,166249,495250,689243,030243,111

33,20432,11132,18731,84332,524

314,322320,827333,378355,033348,313

288,695338,851379,130408,714478,339

903,387941,284995,384

1,038,6201,102,287

'<• For actual amounts see item "Paper delivered to Federal Reserve Agent" on p. 985.


DECEMBER 1,1917. FEDEKAL RESERVE BTJLLEIIls. 987

EARNINGS INVESTMENTS OF FEDERAL .RESERVE BANKS.

Average amounts of earning assets held by each Federal Reserve Bank during October, 191.7, earnings from each class of earningand annual rates of earnings on the basis of October, 1917, returns'.

Batiks.

BostonNew YorkPhiladelphia..,ClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas City...Dallas....:....San Francisco..

Total.

Average balances for the month of the several classes of earning assets.

Billsdiscounted,members.'

Bills boughtin openmarket.

S12,437,992148,441,362

9,958,90410,977,69912,512,3589,668;476

42,165,16518,693,0298,319,100

20,337,4787,964,720

12,295,108

313,771,389

$24,080,65381,873,71615,298,91020,148,5915,181,2212,323,3118,446,7023,429,3962,482,8002,245,4787,314,5055,856,875 |

United States >.securities.

Municipalwarrants.

83,295,750 i.17,298,1993,740,400

13,474,613 i3,860,614 i.8,467,247 !

27,523,052 \.4.161,465 :.4,352,800 !

11,171,187 i.6,301,516 I7,161,113 !-

Total.

3131,165 !7,419 |

12,192

70,195 j

11,500 j

"46,'265* |

339,814,395247,744,44229,005,63344,611,09521,554,19320,535,13978,134,91926,283,89015,166,20033,754,14321,627,00625,312,894

178,679,958 ! 110,807,956 ; 284,646 603,543,949

Banks,

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicago.. „St. Louis.MinneapolisKansas City . ,Dallas ) 31,988San Francisco 42,507

Earnings from—

Bills dis-counted,

mem-bers.

842,016377,33631,32834,79541,83432,765128,22460,54530,791

Total | 922,777

Billsboughtin openmarket.

$73,218237,87643,06556,42215,1217,00823,7889,4326,4926,84519,62917,467

UnitedStatessecur-ities.

89,18549,4459,738

33,3519,248

25,90074,7509,855

10,11122,84613,94719,619

516,363 j 287,996

Muni-cipalwar-

rants.

260

48

"io9

858

Total.

$124,664,

84,124,

66,65,

226,79,47,98,65,79,

1,727,994

Calculated annual rates of earning from—

Bills dis-j Billscounted,! bought

mem- I in openbers. ! market.

j

Per cent.3.853.093.703.733.943.863.603.794.383.974.824.07

3.47

Per cent.3.473.533.313.293.443.443.323.243.083.293.223.51

3.40

UnitedStatessecur-ities.

Per cent.3.033.473.062.912.823.483.202.802.752.412.683.23

3.06

Muni-cipalwar-

rants.

Per cent.

2.64.064.62

3.89

4.89

4.14

3.54

Total.

Per cent.3.563.293.413.293.623.663.433.583.683.413.653.70

3.37


988 FEDEEAL RESEKVE BULLETIN". DECEMBB& 1, 1917.

GOLD IMPORTS AND EXPORTS.

Gold imports and exports into and from, the United States,


Weekending—

IKPOBTS.

Ore and base bullionUnited States mint or assay office bars.Bullion, refined '-United States coinForeign coin

Oct. 19,1917.

535

"653"

Oct, 26,1917.

169

1,1683212

Nov. 2, ! Nov. 9, i Nov. 16,1917.

247 :

1937. 1917.

192 |

361 i326 i

328 !24 i

462

"35"

TotalEXPORTS.

Domestic:Ore and base bullionUnited States mint or assay office bars.Bullion, refinedCoin

1,199 ! 1,381 934

1,7071)334

Total.. 3,041

Foreign:Bullion, reiined.Coin 585

Total

Total exports.

5S5

31

1,466 !437 i

1 :503 :

538 ;117

1,140

1,903 ! 1,042 i 1.2

38 j 35 :

577

697

44

38 35 63 44

1,941 1,077 2,351 ! 741

Total sinceJan. 1,

1917.

13,988114

391,04653,69290,875

549,715

21046,59438,900

269,572

355,276

317,076

7,107

Total corre-sponding

periodduring

1916.

Excess of gold imports over exports since Jan. 1,1917, §187,332.Excess of gold imports over exports since Aug. 1, 1914, $1,056,094.

DISCOUNT RATES.

Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Dec. 4, 1917.

11,7214,009

361,2743,119

119,486

499,609

25813,7367,00371,319

92,316

1,45819,831

21,289

113,605

'Jos tonNew YorkPhiladelphia...ClevelandBichmondAtlantaChicagoSt. LouisMinneapolis....Kansas City....DallasSan Francisco.,

Maturities.

Discounts.

Within 15 .days,

i including ;member :banks' i

collateralnotes. '

16 to 60days.

61 to 90da vs.

Agricul-tural andlive-stock

paperover 90days.

Secured by U. S. cer-tificates of indebted-ness or Liberty Loanbonds.

Within 15 |days, in- jeluding :member |banks' i

collateral jnotes.

^ j3 '•

3$ \

8!

1 !3i j

16 to 90days.

Trade acceptances.

ltoSOdays,

inclusive.

j 61 to 90! days,i inclusive.

3-V i4 " !

4

f444444444

Nct;e 1.—Rase lor. acceptances purchased in open market, 2£ to 4 per cent, except for San Francisco, whose rate ranges from 2%%o 4& per cent.Note 2.—Rates for commodity'paper have been merged with, those for commercial paper of corresponding maturities.


INDEX TO VOLUME 3,

Page.Abrasion of gold coin caused by USB O! coin-counting

machines ". 440,930Acceptances:

Acceptance of drafts with documents attached . 765Advertising space, acceptances based on 114,116Allied purchasing commissions, drafts drawn

for purpose of financing sale of goods to 878Applications to accept up to 100 per cent, reso-

lution of Board regarding 658Bankers' acceptances—

Drawn against shipment of goods from acorporation to its branch or agent 690

Growth in use of 5,6,350,664Regulations of Board regarding 540,541Report of committee of Federal Reserve

Agents on 6Bank's own acceptance, purchase of 28,691Bills of exchange—

Drawn against actually existing value 195Indorsement on ." 457Payable with interest, negotiability of.... 200Regulation of the Board regarding 539, 541

Bullion and coin, bills drawn against 29Chart showing amount held by Federal Reserve

Banks, 1915-16 56Demand and sight bills, presentation for pay-

ment 31Differential as to 28Distribution of, by sizes, maturities, etc 63,141,

222, 319,412,487, 565, 641, 717, 815, 816,905, 977Drafts or bills of exchange drawn for the pur-

pose of creating dollar exchange, regulationof Board regarding 542

Drafts or bills of exchange drawn against ship-ment of goods or secured by warehousereceipts, regulations ol" Board regarding.... 542

Draft drawn by purchaser of goods and securedby bill of lading. 380

Drafts drawn on or before 90 days after sight.. 949Drafts payable on or before a certain date, eligi-

bility of, for discount. 291Drafts payable with interest, negotiability of.. 200Drawn to"finance future importation of goods.. 527Growing out of importation or exportation of

goods 28 .Growth of the bank acceptance business 5, I

6,350,664 |Limitations imposed by section 5200, II. S., and

section 13 of Federal Reserve act 28,193,286,528, 696,879,881

List of banks granted authority to accept up to100 per cent 859, 746,839, 941

Member bank's own acceptances, purchase of.. 28,691Place of payment of 289, 379Regulations of Board regarding 539-542Shipment of goods from a corporation to its

branch or agent, eligibility of acceptance 950drawn against 690

Stamp tax on 950

Page,Acceptances—Continued.

State laws affecting bank acceptances, abstractof 529-533

Trade-Addresses on 9,10,243-245Amounts discounted by Federal Reserve

Banks, statements showing 61.139, 221, 317,408,486, 565,637, 716, 814,902, 977

Bills payable with exchange and collectioncharges, negotiability of 830

Conference of National Credit Men's Asso-ciation held in New York for discus-sion of 243

Form of 378Growth of the trade acceptance business. 157,657Inquiry by Board into use of, by business

houses ." 657Report of committee of Federal Reserve

agents on promoting use of 8Regulation of the Board regarding., 540, 541

Trust receipts as security tor acceptance trans-action 881

Warehouse receipts issued independent of theborrower 30

Accounting plan submitted by Federal ReserveBoard and Federal Trade Commission 21, 270

Act, Federal Reserve. (See Federal Reserve Act.)Acts passed by Congress:

Bondissues. 248, 345,749Permitting the issuance of national-bank notes

of small denominations 837Trading with enemv 851-860War revenue acts. .1 248, 345, 749, 868-877(See also Federal Reserve Act, amendments to.)

Advertisements of "clearing'' members 879Advertising space, acceptances based on 114,113Advisory committee of member banks, status of.

under section 8 of Clayton Act 118Advisory Council. (See Federal Advisory Council.)Agencies and branches. (See Branch agency;

Branch banks; Foreign branches.)Agricultural paper : 114, 540, 616, 890

Method of classifying 114Regulation of the Board regarding 549Statements showing amounts held by Federal

Reserve Banks 221,317, 408,486, 565, 638, 717, 814, 902, 973

Aiken, Alfred L., report by, summarizing operationof clearing and collection system in the Bostondistrict - - - 162

Aliens, enemy, instructions of Board to FederalReserve Banks relating to transactions of Ameri-can banks with 431, 655

(See also Trading with the enemy.)Allied purchasing commissions, drafts drawn for

purpose of financing sale of goods to 878Allied Governments, loans made bv the United

States to, April-September, 1917 731989


§90 FEDEBAL RESERVE BULLETIN. DECEMBER 1,1917.

Amendments to Federal Reserve Act. (See FederalReserve Act, amendments to.)

American Bankers Association:Offering services in connection with bond issue. 438Resolution urging amendments to State laws

permitting deposit of reserves of trust com-panies with Federal Reserve Banks 335

American Trust & Savings Bank, Birmingham, Ala.,statement of. regarding membership in system 370

Annual report (1916) of the Comptroller of the Cur-rency, synopsis of 172

Assets of Federal Reserve Banks, changes in, Janu-ary-September, 1917 758

Chart showing 759Attorney General, opinions by:

Construing section 8 of Clayton Act regardinginterlocking directorates as affecting State-bank members 744

Income tax on dividends made payable inLiberty bonds 601

Austria-Hungary:National debt of, since outbreak of war 18War loans raised by 349

Baltimore, establishment of branch bank in,deferred 440

Bank failures during past 3 years compared withpreceding 33 years 939

Bank of England:Foreign agency established with 5Statements showing condition of.234, 329, 500, 681, 943

Bank of Eufaula, Eufaula, Ala., statement of,regarding membership in system 365

Bank of France:Branch agency established with 175Statements showing condition of .234, 329, 500, 681,943

Bank of Italy, statement showing condition of 681Bank of Japan, statement showing condition of.... 682Bank of Leweilen, Leweilen, Nebr., statement of,

regarding membership in system 367Bank of Montclair, Montclair, N. J., statement of,

regarding membership in system 356Bank of Netherlands, statement showing condition

of 681Bank of Spain, statement showing condition of 682Bank of Wisconsin, Madison, Wis., statement of,

regarding membership in system 362Bankers' acceptances. (See Acceptances, Bankers'.)Belgium, loans made to, by the United States, April-

September, 1917 731Belligerent nations, national indebtedness of 10-19Bills of exchange:

Drawn against actually existing value 195Indorsement on 457Payable with interest, negotiability of 200Regulation of the Board regarding 539, 541

Bill of lading:Draft drawn by purchaser of goods and secured

by bill of lading 380Drafts for collection 114

Bonds of Federal reserve agents and assistantsdecreased 615

Bonds secured by real estate as investment by anational bank 456

Bonds, United States. (See United States bonds;Liberty bonds.)

Branch agency at Memphis, Tenn., report on 168Branch agencies, foreign, establishment of:

Bank of England 5Bank of France 175Philippine National Bank 239

Branches of Federal Reserve Banks:Branch at Baltimore, decision deferred 440By laws for 586,935Directors chosen for branches at Omaha and

Spokane 586Established at Spokane, Y/ash., and Omaha,

Nebr '. 586New plan for establishment of 923Proposed establishment of, in Portland, Seattle,

and Spokane 339Proposed establishment of, in Pittsburgh and

Cincinnati 923Branches, foreign, of national banks:

Not regarded as independent corporations 198Real estate loans by 952

British short-time Treasury bills, statement of Sec-retary of the Treasury regarding 652

Broadway Trust Co., New York City, statement of,regarding membership in system 360

Bullion and coin, acceptances against 29Business conditions throughout the Federal Re-

serve districts 33-56,119-134, 202-219, 293-315, 381-403,460-482, 551-561, 620-633, 698-714, 796-811, 883-899, 958-975

By-laws for branches of Federal Reserve Banks.. 586,935Cable transfers, comparative rates to principal neu-

tral places in Europe 582. 683Canadian short-term credit, statement issued by, Secretary of the Treasury regarding 603, 652Capital stock of Federal Reserve Banks:

Payment of stock subscription pending appli-cation for membership 287

Regulation of Board regarding increase or de-crease of 548

Surrender of, by liquidating bank 457Tax on, opinion by judge of United States

district court of Ohio regarding 955Transfer of stock to a national bank acquiring

assets of a liquidated bank 199Cattle, eligibility of paper secured by loans on 378,

690,763Cattle raisers, letter of Board regarding interest

rates on loans to 659Central State Bank, Dallas, Tex., statement of, re-

garding membership in system 364Central Trust Co. of Illinois, Chicago, 111., statement

of, regarding membership in system v . 368Certificates of indebtedness. (See Treasury certifi-

cates of indebtedness.)Certificates, war savings. (See War savings certifi-

cates.)Charters issued to national banks. (See National

banks, charters to.)Charts:

Annual and monthly price of silver and valueof pure silver in a silver dollar 844, 845

Assets of Federal Reserve Banks, changes in,January-September, 1917 759

Clearing-house operations, 1914-1917; also checkcollections of Federal Reserve Banks, 1916-17 635

Commercial paper, acceptances, and other in-vestments held by Federal Reserve Banks,1915-16 56

Course of dollar and sterling exchange on prin-cipal European neutral places 688,689

Deposit liabilities, reserves held in vault andwith Federal Reserve Banks, and reservepercentages of national banks, 1914-1916. -. - 232

Deposits of Federal Reserve Banks, movementof, during 1917.--.- 849


DECEMEEB 1,1917. INDEX TO VOLUME 991

Charts—Continued.Exchange rates in belligerent, neutral, and

silver-standard countries 408Federal Reserve note circulation, movement

of, during 1917 849Federal Reserve notes issued and cover of gold

and paper held by Federal Reserve Agents. 610Gold holdings of Treasury, national banks,

Federal Reserve .Banks, and Federal ReserveAgents, 1914-1916 233

Gold reserve of principal European banks ofissue, 1913-1916 7 332

Money in circulation, 1914-1917 563Note circulation of principal European banks of

issue, 1913-1916 333Principal changes in condition of European

banks since outbreak of war 944,945Reserve and net deposits of Federal Reserve

Banks, 1915 and 1916 56Reserves of Federal Reserve Banks, movement

of, during 1917. 848Reserves of national banks, 1915-1917 484Silver, movement in price of 483, 484

Error in numbering charts 925Treasury certificates, first nine issues of, rela-

tive contributions of the several Federal Re-serve districts 846

Check clearing and collection:Advertisements of "clearing" members 879Amendment to Federal Reserve Act regarding,

interpretation of 657,660Attitude of a country banker on the exchange

question 740Checks payable in exchange not authorized... 763Circular letter of Federal Reserve Bank of New

York in connection with collection of matur-ing notes and bills 743

Clearing-house operations, 1914-1917; also checkcollections of Federal Reserve Banks, 1916-17 634

Chart showing 635Collection of maturing notes and bills... 658,661, 743

Circular of New York Federal ReserveBank regarding 743

Operation of the system 80In the Boston district 162

Regulation of the Board regarding 549Report of committee of governors on plan for

immediate availability of drafts 78Summary of transactions, by months 6,

il5,171,268,354,455, 524, 613, 680,762, 841. 948Christmas gifts, substitution of war-savings certifi-

cates for gold coin for use as 931, 951Circulars and regulations of the Federal Reserve

Board. (See Regulations.)Citizens State Bank, Memphis, Tenn., statement of,

regarding membership in system 371Clayton Act:

Opinion of Attorney General regarding inter-locking directorates as a,ffecting State bankmembers 744

Permission granted by Board to serve as directorunder, is continuing and good until revoked. 763

Substantial competition within meaning of.... 878Clearing of checks. (See Check clearing and collec-

tion.)Coin, bullion, and currency, regulations governing

export of 736-739Coin-counting machines, use of, discouraged ^ 440,930Collateral notes of member banks, amounts dis-

counted by Federal Reserve Banks, statementsshowing 61,139,

221. 317,408,486, 565, 637,716,814,902,977

Commercial failures throughout the United States:By months 19,

113,167,267,374,440,520, 604, 677, 747,864, 940In 1916....' 113

Commercial paper:Amounts discounted by Federal Reserve Banks,

statements showing 57-66,135-144.220-225, 316-321, 407-411,485-490. 563-567^636-644, 715-721, 812-819, 900-909, 976-982

Amounts discounted for 3 months ending—March, 1917 409June, 1917 639September, 1917 903

Amounts held by Federal Reserve Banks eachmonth, statements showing 62,140,

221,317,408,486,565, 638.717,814,902,978Cattle paper 378,690.763Chart showing amounts held by Federal Reserve

Banks, 1915-16 '. 56Discount of paper for use in trading ixi United

States bonds or notes 158Equity exchange, paper of 379Fifteen-day notes of member banks, renewal

of 765Participation certificate, rediscount of 949Public-service corporation paper, [eligibility

of 949Short-term paper advocated 733,739Short-term paper, renewal of 879Standardizing, resolution of Portland. Oreg..

clearing-house banks regarding 930Commercial Trust & Savings Bank, Joliet, 111.,

statement of, regarding membership in system... 361Commissioner of Internal Revenue, rulings of:

Federal Reserve Banks not subject to tax uponcharges for telephone, telegraph, and expressservice , 931

Tax on income from Liberty bonds 459,930Tax on promissory notes 950

Commodity paper:Amounts discounted by Federal Reserve Banks,

statements showing 61,139,221, 317, 408, 486, 565, 637, 716, 814,902,977

Regulation of the Board regarding rediscount-ing of 540

Commonwealth Trust Co., Boston, Mass., state-ment of, regarding membership in system 362

Comptroller of the Currency:Annual report of, synopsis of 172Call for reports of condition of national banks,

changes in v 604Condition of national banks as shown by calls

of 161, 372, 665Corn Exchange Bank, New York City, statement

of, regarding membership in system . . 359Counsel of Federal Reserve Board, opinions of.

(See Law department.)Coupons on United States bonds, instructions for

handling 938Currency:

Custody of gold, lawful money, and FederalReserve notes held by Federal ReserveAgents 691

National-bank notes of small denominations,act authorizing issue of 837

National-bank notes and Federal Reserve notesissued and redeemed during year 667,941

Regulations governing export of 736-739Shipment of 615Silver, monthly movement in price of 842


992 FEDERAL RESERVE BULLETIN.. , 1917.

Page.Delaware, laws of, authorizing national banks to

exercise trust powers 697Denmark, National Bank of Copenhagen, state-

ment showing condition of 082Department of Agriculture, tabulated reports by, on

credit, needs of farmers..' '. 937Deposits:

Chart showing deposits of Federal ReserveBanks during years 1915-16 56

Federal land bank deposits with Federal Re-serve Banks 379, 881

Government—Banks not required to maintain reserves

against 458Deduction of, in determining amount

against which reserves must be carried.. 692Held by Federal Reserve Banks 847-850

Chart showing . 849Nonmember banks' deposits,rulings regarding. 617,951Statement of Secretary of the Treasury regarding

nonconfiscation of 931Withdrawal of, by foreigners 154

Description of Federal Reserve districts 668Directors of branch banks at Spokane and Omaha,

appointment of 586Directors of Federal Reserve Banks:

Classes A and B, election of 7,8Instructions regarding 742

Class C, appointment of, for year 1917 7List of, whose terms expire Dec. 31, 1917 743Term of office 290

Directors of national banks, loans to, under section22 as amended 614,695, 763,929

Discount, method of computing 951Discount operations of the Federal Reserve Banks,

statements showing 57-66,135-144,220-225, 316-321, 407-411, 485-490, 563-567,636-644, 715-721, 812-819, 900-909, 976-982

Discount rates:Advance in, advised by Board 922Establishment of rate for short-term notes se-

cured by Liberty bonds 425,429In effect, by months 74,152,

231, 327,421,496, 575, 650, 728, 825, 916, 988Revision and standardization of 235,241

Dividends:Declared by Federal Reserve Banks 4, 507Rights of liquidated national bank to accrued.. 117

Dollar exchange:Drafts drawn for purpose of creating, regulation

of Board regarding T 542Rates in European countries 156, 582, 683

Drafts:Federal Reserve. (See Federal Reserve drafts.)Payable on or before a certain date, eligibility

of, for discount 291Immediate availability of drafts at par, report

of committee of governors on plan for 78Drafts, notes, and bills of exchange:

Regulations of the Board regarding rediscountof... . . . 539,541

u Earmarking" of gold for foreign account 733Earnings and expenses of Federal Reserve Banks:

For year 1916 89-93For 6 months ending June 30, 1917 605-609

Earnings on investments of Federal Reserve Banks,statements showing 73,151,

230, 326,420,495, 574, 649, 727, 824, 915, 987Election of directors of Federal Reserve Banks.

(;SW'JDirectors.)

Page.Employees of Federal Reserve Banks:

Exemptions from military service not sanc-tioned by Board 591

Group insurance covering 28Enemies, alien, instructions of Board to Federal

Reserve Banks relating to transactions ofAmerican banks with 431, 655

(See also Trading with the enemy.)England. (See United Kingdom.)Examination of national banks, payment for 374Examination of State banks, instructions to Federal

Reserve Agents in connection with applicationsfor membership 592-594

Examiners, national-bank. (See National-bank ex-aminers.)

j Exchange rates in foreign countries 156,328,405,576,582,683

Chart showing 406Executive orders:

Exportation of coin, bullion, and currency.. 736-739Regulations for carrying out provisions of the

trading with the enemy act 860-863Expenses of Federal Reserve Banks. (See Earnings

and expenses.)Expenses of Federal Reserve Board. (See Federal

Reserve Board, expenses of.)Export licenses in the foreign trade:

Export license lists. .583-584, 672-675,755-757,864-868Forms of application 585,674-676Executive order defining rules for carrying out

provisions of law 582,672Exports council. Executive order creating 582Exports of coin, bullion, and currency, regulations

governing 738-739Failures:

Bank, during past 3 years compared with pre-ceding 33 years... .* 939

Commercial. (See Commercial failures.)Farm land:

Loans on improved 613Regulations of the Board regarding loans on . . . 548(See also Real estate.)

Farmers, reports tabulated by Department of Agri-culture on credit needs of 937

Federal Advisory Council:Meetings of 340, 92.1Recommendations of, on amendments to act. 106-109

Federal land banks, deposit of funds of, in FederalReserve Banks..'. 379, 881

Federal Reserve Act:Amendments to—

Act as signed by President 511-518Amendments re State bank membership

remtroduced in Congress *. 336Check clearing and collection, interpreta-

tion of amendment regarding 657,660Comparative Senate and House bills as in-

troduced in February, 1917 177-187Senate and House reports 188-192Effect of proposed amendment to section 19

of act regarding reserves 109,285Hardwick amendment relating to check

clearing, interpretation of 660Letter of Board regarding new reserve re-

quirements 508No action taken by Sixty-fourth Congress.. 235Proposed amendment authorizing banking

corporations to do a foreign banking busi-ness 450


DKCBMBBR 1,1917. INDEX TO VOLUME 3. 998

Federal Reserve Act—Continued. Page.Amendments to—Continued.

Recommendations of Federal AdvisoryCouncil on 106-109

Reprint of bill as adopted by the House andSenate 1 441-449

Section 22, interpretation of 614,694Submitted to Congress bv Board in Decem-

ber, 1918 ." 98-106Synopsis of amendments as passed 501-503,

509-511Text of amendments as passed 511-518

Litigation involving constitutionality of sec-tion 11 (k) '. 32

Section 22, interpretation of 30,614,694Synopsis of amendments as oassed 501-503,

509-511Federal Reserve Agents:

Bonds of, decreased 615Conferences with Board 4Gold and paper held by, against issue of Federal

Reserve notes '..". 610Joint custody with Federal Reserve Banks of

gold, lawful money, and Federal Reservenotes '. 691

Report of committee on bankers' acceptances.. 6Report of committee on promoting use of trade

acceptances *. 8Federal Reserve Agents' fund, summary of trans-

actions under 27, 97,176,269,354,455,524, 612,680, 761, 841,948

Federal Reserve Banks:Agency at Memphis, Term., report on 168Assets of, changes in, January-September, 1917. 758Assistance rendered in floating the Liberty loan. 497,

577, 580, 588Branch agencies, foreign—


Branch banks—Branch at Baltimore, decision deferred 440By-laws for 586,935Directors chosen for branches at Omaha and

Spokane 586Established at Spokane, Wash,, and

Omaha, Nebr 586Proposed establishment of, in Portland,

Seattle, and Spokane 339Proposed establishment of, in Pittsburgh

and Cincinnati 1 923Capital stock of. (See Capital stock.)Condition of, compared with principal foreign

banks ~ . 681Deposits held by 847-850

Chart showing 849Deposits of Federal land banks with 379, 881Deposits by nonmember banks in 617Directors of. (See Directors of Federal Reserve

Banks.)Dividends declared -. 4,507Earnings and expenses of—

For year 1916 89-93For 6 months ending June 30, 1917 605-609

Employees of, exemption of, from militaryservice 591

Furniture and equipment, etc., cost of 93,608Insurance, group, covering employees of 28Joint custody, with Federal Reserve Agent, of

gold, lawful money, and Federal Reservenotes 691

Federal Reserve Banks—Continued. Page-New form of weekly statement 506New York Federal Reserve Bank, letter of,

with respect to banking cooperation in con-trol of gold supply 659

Profit and loss account of 92Relation of, to Subtreasuries, letter of Secretary

of Treasury regarding 110-112Stock in, transfer of, to a national bank acquir-

ing assets of a liquidated bank 199Federal Reserve Board:

Approval of plan for immediate availability ofdrafts at par 78

Collaboration with Federal Trade Commissionon accounting plan 21,270

Conference with Federal Reserve Agents 4Employees of, exemption from military service. 591Expenses of, assessment for—

Jan.-June 23,24July-Dec 525,526

Harding, Hon. W. P. G., redesignated asgovernor 659

Instructions regarding new reserve require-ments under amendments to act 508

instructions to Federal Reserve Banks regard-ing transactions with enemy aliens 431,655

Receipts and disbursements of, for year 1916 . . . 87,88Rediscounting privileges granted to non-

member banks by, for use in meeting de-mands caused by subscriptions to Libertyloan 426,430

Regulations issued by. (See Regulations of theFederal Reserve Board.)

Resolution regarding applications to accept upto 100 per cent of capital and surplus 658

United States bonds, resolution regardingquarterly allotment of 5

Warburg, Hon. P. MM redesignated as vicegovernor 659

Federal Reserve Bulletin:January 1-74February 75-152March 153-234April 235-334May 335-422June 423-496July 497-576August 577-650September 651-728October 729-826November 827-916December 917-1000Bound copies of 158

Federal Reserve districts:Counties in divided States 668Description of 668Population of 668

Federal Reserve drafts:Forms of 349Instructions regarding use of 337-349,440,591Postponement of date on which plan was to be-

come effective 440Federal Reserve notes:

Amount in circulation during 1917 847-850Chart showing 849

Amount issued during 1917 and cover of goldand paper held by Federal Reserve Agents.. 610

Chart showing 610Amount issued and redeemed during year. . . 667,941Cost of unissued * 93,609Distribution of, to mints and subtreasuries-. 155,237


994 FEDERAL RESERVE BULLETIN". DECEMBER 1,1917.

Page.Federal Reserve notes—Continued.

Federal Reserve note account of each FederalReserve Bank and agent each week--o9,147. 22$,

324,418, 492, 572r 647, 725, 822, 912, 985Increase in cost of 743Interdistrict movement of 648, 914Note-Issuing capacity of Federal Reserve Banks 1.55Paper drawn for purpose of trading in Govern-

ment obligations, eligibility -as collateral forissue of 45?)

Plan for forwarding unfit notes to Washingtonfor redemption 82, 242

Substitution of collateral, letter of 13card re-garding 351

Unfit notes, shipment of, to Washington forredemption m -' 82, 242

Use of note ernbloni on stationery not per-missible 191

" Federal Reserve Svstem and the War," article byHon. W. P. G.-Havding 588

Federal Reserve System:Private banks, membership of 093Statements by State banks and trust companies

when joinin-:; 355, 596, 667, 834Views oil Texas banker regarding operation of

system i 59VieVs oi" 32 State banks regarding advantages

of membershi p in 355-372Federal Trade Commission, collaboration with

Board on accounting plan 2 i, 270"Federal," use of the word, as part of title of mem-

ber bank 615Fiduciary powers:

Laws passed authorizing national banks toexercise trust powers—

Delaware 528Georgia 767Washington p 697

List of national banks granted fiduciary powers. 20,115,167, 267, 375, 440, 507, 604, 678, 746, 889, 941

Litigation involving constitutionality of section11 (k) of act . . . / . .* 32, 254, 534

Argument of counsel before SupremeCourt of the United States ." 254

Decision of Supreme Court 534Regulations of Board regarding granting of

trust powers to national banks 1.. . 545States in which national banks mav exorcise,

under section 11 (k) of act .". 30, 528, 697, 7o7First Guaranty State Bank, Pittsburg, Tex., state-

ment of, regarding membership in system 371First State Bank, '"Bonham, Tex., statement of,

regarding membership in system - 364First State Bank. Dallas, Tex", statement of, regard-

ing membership in system 356First State Bank, Hamlin, Tex., statement of,

regarding membership in system 389Food administrator, suggestions as to interest rates

to cattle raisers .' 659Foreign agencies, establishment of:


Foreign banks:Comparative statement showing condition of

Federal Reserve Banks and leading centralbanks of issue 681

Statements showing condition of principalEuropean banks of issue 234,329. 500, 681,942

"Page.

Foreign branches of national banks:Not regarded as independent corporations 198Real estate loans by 952

Foreign exchange rates * 156, 328, 405, 576Chart showing 406

Foreign Governments, loans made by the UnitedStates to, from Apr. 25 to Sept. 20, 1917 731

Foreign nations, public debt of 10-19Foreign securities:

Investments in _ 2, 82, 236, 239Address of Gov. Harding at Boston re-

garding 2Letter to a national bank outlining policy

of Board on 82Foreign war loans raised by belligerent countries. 349, 351Foreigners, withdrawing of bank deposits by 154Forms:

Export license 585, 674-676Federal Reserve drafts 349Trade acceptance 378

Fort Scott State Bank, Fort Scott, Kans., statementof, regarding membership in system 366

France:"Bank of France, statements showing condition

of '. 234, 329, 500, 681,943Branch agency of Federal Reserve Banks estab-

lished at Paris 175Loans made by the United States to, April-

September, 1917 ' . . . . 731National debt of 11-13War loans raised by 349

Franking privilege in correspondence relating tobond issue 439

Georgia, law passed by Legislature of, authorizingnational banks to exercise trust powers 767

Gorman-American Bank, Minneapolis, Minn., state-merit of, regarding membership in system 357

Germany:Amounts subscribed to fourth and fifth war

loans 351National debt of 14-18Statements showing condition of German

Reichsbank ." 234, 329, 500, 681,946War loans raised by 349, 351

Gold:Abrasion of coin caused by use of coin-counting

machines 440, 930Control of supply oi' 1, 2, 659Cooperation of State banks in New York with

respect to control of 659''Earmarking" of gold for foreign account 733Imports and exports of 71,

149, 229, 327, 422, 496, 575, 650. 728, 825, 916, 988Regulations governing export of 736-739Use of gold coin for Christmas gifts discouraged 931,951Shipments of, to foreign countries 655

Gold settlement fund:Audit of 611Change in operation of fund caused by amend-

ment to act 521Circular letter issued by Treasurer's office re-

garding change in operation of fund 522Expense of operation 94Question as to extension of fund 238Summavv of transactions under 25.

95,175, 268, 353,454, 524, 611, 678, 760, 840,947Government deposits:

Banks not required to maintain reserves against. 458Deduction of, in determining amount against

which reserves must be carried 692


DF.CKMBHR 1, 1017. JTSTD.KX TO V O L U M E 3 . 995

Page.Governors of Federal Reserve Bauks:

Meetings of. 7. :M7. 921Report of committee on plan for immediate

availability of drafts '. 78Great Britain. (See United K/ingdom.)Guardian Trust & Savings Bank. Toledo, Ohio.

statement of, rc3ga.rdi.ng memborehi.p in system :>(•}•••!Harding. Hon. W. F . G.:

Address at Boston, regarding investments in for-eign obligations 2

.Article by. on "The Federal Reserve Systernand the War" ." 588

Message of. to COD. vent ion. of North Carolinabankers, business men, etc "159

Redesigns, tec! as governor of Federal ReserveBoard 659

Trip to western Staix-s m behalf of -first LibertvLoan \ 429

Harris, B . D., vice president of National City Bankof New York, address of, on trade acceptances. . . 245 ;

Hibernia Bank & Trust Co.. "Mew Orleans, La..statement issued by, when joining the system.. 067 \

Idaho Banking Department, statement issued by. •regarding State-bank membership 599

Imports and. exports, gold. (See Gold imports andexports.)

Income tax on investments in Liberty bonds,opinion by Attorney General mid Commissionerof Internal Revenue regarding 459, 60L 930 ;

Inflation of currency and its effect upon rise 'in Iprices, from London Economist. 375 :

informal rulings of the Federal Reserve Board:Acceptances—

Allied purchasing commissions, draftsdrawn for purpose of financing sale ofgoods to 878 I

Bankers' acceptances drawn against ship- !ment of goods from, a corporation, to itsbranch or agent T .*. 690

Bank's own acceptance, purchase ox 28, 691 '.Based on advertising space 114 ;

Bullion and coin, bills drawn against 29Differential as to .' 28Drafts drawn on or before 90 days after

s ight- . . - . '. 949Drawn to finance the future importation of

goods 527 .Growing out of importation or exportation

of goods .* 28Limitations imposed by section 5200, R. S..

and section 13 cf Federal Reserve A c t . . 28,193, 286; 879

Member banjos own acceptances, purchaseof 28,691

Place of payment of acceptances 379Stamp tax on 950Trade 287,378Warehouse receipts as security 30 :

Advertisements of "clear ing" members 879Agricultural and live-stock paper, method of

classifying 1.14 !Bill of exchange, indorsement on 457 ;Bill of lading drafts for collection I'M ;Bonds of Federal Reserve agents &n& assistants ;

decreased 615 !Bonds secured by real estate as investment for

national bank 156Capital stock, surrender of. by liquidated

bank 457Cattle paper 378, 763, 690Checks payableJn exchange not authorized. . . 763

Page.Informal rulings of the Federal Reserve Board—Con.

Clayton Ac:t—Permission granted by Board to serve? as

director under, is continuing and £oo(.lviiitil revoked 763

iSii bstanlial compei-ition within meaning of. 878('u'-reiicy, shipment of, to cover reserves 6"J5Cnsf.ody' of gold, lawful money, and Federal

'Reserve notes held hy Federal ReserveAgents ' 69J

Demand notes, eligibility of, for rediscount... 527Directors of national banks, loans to. under sec-

tion 22 as amended. '. (VI4, 763Discount, method of computing 951Equity exchange, paper of 379Federal land banks, deposits by, in Federal Re-

serve Banks 379*: Federal," use of the word, as part of the

title of member bank 615Federal Reserve agents and assistants, bonds

of, decreased (VI5Fiduciary powers. States in which, banks may

exercise, under section 11 (k) of act 30Indorsement on bill of exchange. 457Insurance, group, covering employees of Fed-

eral Preserve Banks 28Limitations under section 5200, It. S., and sec-

tion 13 of act ' ' . . . 193, 280. 879liquidated bank, surrender of stock subscrip-

tion by 157Loans to directors of national banks, under sec-

tion 22 as amended 614, 76'>Morris plan bank, ruling as to directors of, under

Clayton Act and Federal Reserve Act 527Mutual savings bank, eligibility of, for mem-

bership 950Monmeinber banks, deposits with 951Paper of a waterworks company 527Participation certificate, rediscount of 949Public-service corporation pivper, eligibility of. 1)49Potatoes as security, superseding ruling of Nov.

10, 1935 '-...-- " . . . v -'"- 614Real estate, bonds secured, by, as investment

for national bank 456.Real estate loans, national banks subject to

limitations imposed by section 24 of act 61; 1Renewal of short-term paper 879Kerarve balances 285Reserves, computation ox 614.Section 22 of act, interpretation of 30, 614, 763Section 5200 11. S. and section 13 of act, limita-

tions under 193, 286, 879Shipment of goods from, a corporation to its

branch or agent, eligibility of acceptancedrawn against 690

Short-term paper, renewal of 879State banks, conversion, of, into national banks .. 690State bank mem.bersMp,*TulingsTegarding... 764, 950Stationery, use of Federal Reserve note emblem

on, not permissible '194Slock subscriptions, payment of, pending ap-

proval of application for membership 287Tax, stamp, on acceptances 050Tax, on promissory notes 950Trade acceptance," form of 378Treasury certificates and bonds as security 457United States 2 per cent bonds, purchase of 879War Department obligations, purchase of, by

member banks \ 288'War-savings certificates as Christmas gifts 951Warehouse receipts, paper secured by 456


996 FEDERAL EESEBVE BULLETIN. DECEMBER 1,1917.

Page.Informal ruling3 of the Federal Reserve Board—

Continued.Warrants, purchase of 29

In excess of the 25 per cent limit 1.94Nonnegotiable 193

Insurance agents, regulations under which nationalbanks may act as 164

Insurance companies, licensing of, under tradingwith the enemy act. 838

Insurance, group, covering employees of FederalReserve Banks 28

Interlocking directorates. (See Clayton Act.)Italy:

Bank of, statement showing condition of 681Loans made by the United States to, Apr.-

Sept., 1917..' 731War loans raised by 349

Japan, Bank of, statement showing condition of 682•Tones, Breckinridge, statement issued by, regarding

membership of Mississippi Valley Trust Co 596-598Law department:

Acceptances—Acceptance of drafts with documents at-

tached 765Demand and sight bills, presentation for

payment 31Draft drawn by purchaser of goods and se-

cured by bill of lading ia not eligible foracceptance 380

limitations imposed by section 5200 U.S. 528, 696Limitations on member-bank acceptances

under section 13 of act 528Place of payment of 289State laws affecting bank acceptances, ab-

stract of 529-533Trust receipts as security for acceptance

transaction 881Advertising space, acceptances based on 116Advisory committee of member banks, status of,

under Clayton Act • 118Argument of counsel before Supreme Court in

case brought to test constitutionality of sec-tion 11 (k) of act 254

Bills of exchange drawn against actually exist-ing value 195

Branch banks, foreign, of national banks:Not regarded as independent corporations.. 198Real estate loans by * 952

Commissioner of Internal Revenue, ruling of, retaxability of income from investment in Lib-erty bonas 459

Deposits by nonmember banks in Federal Re- jserve Banks 617 j

Deposits of farm land banks with Federal Re- •serve Banks 881 j

Directors of Federal Reserve Banks, term of !office m 290 !

Directors of national banks, loans to, under jsection 22 of act as amended 694 \

Dividends, accrued, rights of liquidated bank !to 117 j

Drafts payable on or before a certain date, eli-gibility of, for discount 291

Drafts payable with interest, negotiability of.. 200Exchange and collection charges, bills payable

with, negotiability of 880Farm land banks, deposits of, with Federal

Reserve Banks 881Farm land, loans on improved 618Federal Reserve Banks, deposits by nonmem-

ber banks in 617

Page.Law department—Continued.

Federal Reserve notes, paper drawn for purposeof trading in Government obligations is eligi-ble as collateral security of 459

Fifteen-day paper of member banks, renewal of. 765Fiduciary powers, laws passed authorizing na-

tional banks to exercise—Delaware 528Georgia 767Washington 697

Government deposits—Banks not required to maintain reserves

against 458Deduction of. in determining amount

against which reserves must be carried.. 692Liberty bonds—

Taxability of income from, ruling of Com-missi oner of I ntcrnal Revenue regarding. 459

Note issued by bank to replace funcls with-drawn to purchase, is not eligible for re-discount 954

Liquidated national bank, rights of, to accrueddividends 117

live stock, paper based on 616Member-bank acceptances, limitations imposed

by section 5200, R. S 696National banks—

Foreign branches of—Not regarded as independent corpora-

tions 198Real estate loans by 952

Usurious charges by 292Negotiable paper, bills payable with collection

charges not classed as 880Nonmember banks, deposits by, in Federal

Reserve Banks ." 617Notes and bills drawn for purpose of trading in

Government obligations, eligibility as collat-te'ral for Federal Reserve notes 459

Paper secured by mortgage on real estate, eligi-bility for rediscount 458

Private bankers as members of the FederalReserve System 693

Real estate, paper secured by mortgage on,eligibility for rediscount 458

Real estate loans by foreign branch banks 952Renewal of 15-day notes of member banks . . . . 765Reserves—

Against Government deposits, banks notrequired to maintain 458

Deductions of Government deposits, etc.,in determining amount against which re-serves must be carried 692

Synopsis of State laws relating to 767-795Section 11 (k) of act, litigation involving consti-

tutionality of 32, 254, 534Section 22 of Federal Reserve Act, interpreta-

tion of amendment to 694State banks—

Application for membership before com-mencing business 953

Capital subscriptions on entering FederalReserve System 696

Powers of, which become members of Fed-eral Reservejsysrem 696

State laws—Affecting bank acceptances, abstract of. 529-533Relating to reserves, synopsis of 767-795

Stock in Federal Reserve Banks, transfer of, toa national bank acquiring assets of a liqui-dated bank 199


DECEMBER 1,1917. INDEX TO VOLUME 3. 997

Law department—Continued.Tax on Federal Reserve Bank stock, opinion

by judge of United States diisi-ict court ofOhio regarding 955

Trade acceptances, bills payable with exchangeand collection charges, negotiability of 880

Trust receipts as security for acceptance trans-action 881

Usurious charges by national banks 292Warrants, purchase of 32Washington, laws of, authorizing national banks

to exercise trust powers 897liberty bonds:

Acts providing for issue of 248,345,749American Bankers Association, services offered

by, in connection with 438Arrangements for 341,423, 729, 734Assistance rendered by Federal Reserve Baxiks

in floating 497, 577, 580, 588Circulars issued by Treasury Department re-

garding . \ . . . 432-437, 505-506, 734-736,932Cost of telegrams relating to 439Coupons, instructions for handling 938Distribution and allotment of, by Federal Re-

serve districts..... 506,578,932Establishment of discount rate for short-term

notes secured by 425,429Extracts from Official Bulletin regarding 599Instructions by Board to Federal Reserve Banks

regarding conversion of outstanding bondsinto 341

National banks, subscriptions taken by . . . . 748Note issued by bank to replace funds with-

drawn to purchase, is not eligible for redis-count 954

Paper secured by, eligibility of, for rediscount.. 457Personnel of Liberty Loan committees 437Plans for placing second issue of 729, 734Rediscount privileges granted to nonmem-

ber banks, in meeting demands caused bysubscriptions to 1 426,430, 509

Resolution of American Bankers Associationoffering services in connection with bondissue 438

Ruling as to use of franking privilege in corre-spondence relating to bond issue 439

Statement by Secretary of the Treasury regard-ing floating of second issue 734-736

Statement issued by Treasury Department re-garding exchange of * 600

Subscriptions announced... 497, 505, 506,829,917,932Tax on—

Opinion of Attorney General of UnitedStates regarding 601

Rulings by Commissioner of Internal Rev-enue regarding 459,930

Trip of Secretary of the Treasury and Governorof Federal Reserve Board in behalf of 429

Licenses, list of articles requiring, for shipmentsmade to foreign countries 583,672,755

Liquidating bank, surrender of stock subscriptionby 457

Live-stock paper 114,540,616Method of classifying 114Statements showing amounts held by Federal

Reserve Banks 221,317,408,486, 565, 638, 717,814,902,978

Loans to allied Governments made by the UnitedStates, Apr.-Sept., 1917 731

Loans to directors of national banks, suggested formof resolution when making 614

Page.Loans on farm land and other real estate. (See

Farm land; Real estate.)London Economist:

Articles from—Inflation of currency and its effect on rise .

in prices 375"Our financial duty". . 518

Malburn, Hon. Wm. P., appointed chief nationalbank examiner for New York district 80

Member banks, condensed reports by, required inprincipal cities 921

Memphis, Tenn., branch agency at, report on 168Mercantile Trust Co., St. Louis, Mo., statement of?

regarding membership in system 361Merchants & Farmers Bank, Cheraw, S. C, state-

ment of, regarding membership in system 361Military service, exemption of Federal Reserve

Bank employees from, not sanctioned by Board. 591Miller, Hon. A. C, visit of, to Federal Reserve Bank

of San Francisco in connection with branches tobe established 340

Money in circulation, 1914-1917 562Chart showing 563

Morris plan bank, ruling as to directors of, underClayton Act and Federal Reserve Act 527

National-bank examiners:Appointed for fifth and sixth Federal Reserve

districts 748Malburn, Hon. Wm. P., appointed chief ex-

aminer for New York district 80National-bank notes:

Amount issued and redeemed during year... 667,94!lText of act authorizing issue of small denomina-

tions of 837National banks:

Advisory committee, status of, under section 8of Clayton Act 118

(harters issued to 20,115,167,266,374,450, 520, 604,678, 747,864,942

Reports of condition as shown by comptroller'scall. 161, 372,665

Comptroller's call for reports of condition of,changes in 604

Distribution, by States, of 100 largest nationalbanks 19

Dividends, accured, rights of liquidated bankto 117

Examination of, payment for 374Failures of, during past 3 years compared with

preceding 33 years 939Fiduciary powers granted to. (See Fiduciary

powers.)Foreign branches of—

Not regarded as independent corporations. 198Real estate loans by 952

Increase and decrease in number and capital of,during fiscal year 1917 603

Liberty bond subscriptions, amount of, takenby 748

Regulations under which national banks mayact as insurance and real estate agents 164

Report of condition as shown by last reportunder old reserve requirement 665

Reserves of, method of computing, underamendment to act.. 602

Stock in Federal Reserve Bank, transfer of, toa national bank acquiring assets of a liqui-dated bank 199

Usurious charges by 292Negotiability of paper with exchange and collection

charges 880


998 JTEDEKAL EESEEVE BULLETIN. DECEMBER 1,1917.

Page.Netherlands, Bank of, statement showing condition

of 681Nonmeinber banks:gfc Deposits of, rulings regarding 617, 951

Rediscounting privileges granted by Board to,in meeting demands caused by subscriptions

&y: to liberty Loan " 426,430, 509Norway, Norges Bank, statement showing condition

of../. 082Notes, drafts, and bills of exchange, regulations of

the Board regarding rediscount of 539, 541Ohio Bankers' Association, circular of, on war

service 852Old Colony Trust Co., Boston, Mass., statement of.

regarding membership in system 370Omaha, Nebr., branch bank established at 586Opinions of the Attorney General. (See Attorney

General, opinions of.)Opinions of counsel of the Federal Reserve Board.

'(See Law Department.)Oregon, statement of Superintendent of Banks of,

regarding State bank membership 934Pennsylvania, act passed by legislature of, permit-

ling State banks to join the system 666Philippine 'National Bank, designated as agent of

Federal Reserve Bank of San Francisco 239Portland. Orog., branch of Federal Reserve Bank of

San Francisco in 339'Population of Federal Reserve districts oti&Potatoes as security, ruling of Board, on 614President of the United States:

Executive order prescribing regulations forcarrying out provisions of the trading with theenemy act 860-863

Proclamations regarding export licenses in theforeign trade. / . 582: 672

Regulations issued by, governing export of coin,bullion, and currency 736-739

Statement of. regarding State bank membership 827Press statements:

Amendments to Act proposed by Federal Re-serve Board 98 |

Bank failures, statement by Comptroller of the !Currency regarding 939 j

Canadian short-time credit, statement by Secre-tary of the Treasury 603

Comptroller's call for reports of condition ofnational hanks, changes in 604

Foreign loans, investments in 239Form for reporting reserve position in Boston

clearing-house bank statement 83i ncrease and decrease in number and capital of

national banks during year 603Liberty bonds 432; 505, 600, 734

Statement by comptroller regardingnational bank subscriptions to 748

Limitations under section 5200, R. S 519Message of Hon. W. P. G. Harding to convention

of North Carolina bankers, business men, etc 159National-bank examiners appointed for fifth

and sixth Federal Reserve districts 748Recommendations of Federal Advisory Council

on amendments to act 106-109Reports of condition of national banks as shown

by comptroller's call 161,372, 665Reserves held by national banks 373Treasury certificates of indebtedness, issues of 240,

341,663,741,838Private banks, membership of, in Federal Reserve

System 693

Promissory notes:Regulation of the Board regarding rediscount of. 539Tax on 950

Real estate agents, regulations under which nationalbanks may act as. 164

Real estate:Bonds secured by, as investment 456Loans on—

National banks subject to limitations im-posed by section 24 of act 691

Regulations of the Board regarding 546Paper secured by mortgage on, eligibility for

rediscount 458(See also Farm, land.)

Receipts and disbursements of Federal ReserveBoard 87, 88

Regulations governing the exportation of coin,bullion, and currency 736-739

Regulations under which national banks may actas insurance and real estate agents '. 164

Regulations for carrying out provisions of tradingwith the enemy act 860

Regulations of the Federal Reserve Board, 1917:Reg. A—Rediscounts under section 13 539Reg. B—Open-market purchases of bills of

exchange, trade acceptances, and bankers'acceptances under section 14 541

Reg. 0—Acceptance by member banks ofdrafts and bills of exchange 542

Keg. I)—'.rime deposits and savings accounts.. 543Reg. E—Purchase of warrants 543Keg. F—-Trust powers of national banks 545Reg. G—Loans"on farm lands and other real

estate 546Reg. II—-Membership of State banks and trust

companies 547Reg. I—Increase or decrease of capital stock of

Federal Reserve Banks 548Reg. J—Check clearing and collection 549

Renewal of 15-day notes of member banks 765Reserve cities designated 921Reserves:

Computation of 614Deductions of Government deposits in deter-

mining amount against which reserves mustbe carried 458, 692

Effect of proposed amendment to section 19 ofact regarding 109,285

Federal Reserve Bank reserves, 1915 and 1916,chart showing 56

Fictitious reserves carried in the form of reservebalances 2

Form for reporting reserve position in Bostonclearing-house bank statement 83

Letter of Board regarding new reserve require-ments under amendments to act 508

Member banks not required to maintain reservesagainst Government deposits 458,692

Movement of reserves of Federal Reserve Banksduring 1917 847-850

Chart showing 848National-bank, method of computing under

amendment to act 602National banks, 1915-1917 [[ 483

Chart showing 484State laws relating to, synopsis of 767-795

Resources and liabilities of Federal ReserveBanks, statements showing 67

145, 226, 322, 416, 491, 570, 645, 722, 820,*910,983Revenue act passed by Sixty-fourth Congress:

House report on 251Text of 248


DECEMBER 1, 1917. INDEX TO VOLUME 3. 999

Page.Review of the work of the Federal Reserve Board,

by months 1,75,153, 235, 335,423,497,; 7, 651, 729, 827, 917

Rulings of the Board. (See Informal rulings; Lawdepartment.)

Russia:Loans made by the United States to, April-

September, 1917 731National debt of, since outbreak of war 14Statements showing condition of Bank of

Russia 234,329,500, 681,946War loans raised by 349

Savings Bank of Richmond, Richmond, Va., state-ment of, regarding membership in system 356

Savings accounts, regulations of the Board regarding 543Savings banks:

Mutual, eligibility of, for membership 950Rediscount privileges granted by Board to, in

meeting demands caused by subscriptions toLiberty bonds 426,430,509

Seattle, Wash., establishment of branch of FederalReserve Bank of San Francisco in 339

Secretary of the Treasury:Letter regarding subtreasuries and their rela-

tion to Federal Reserve Banks 110-112Statements regarding Liberty Loans 432,

505,600, 734, 932Trip to Western States in behalf of the first

Liberty Loan 429Section 11 (k) of act, litigation involving constitu-

tionality of 32,254, 534Argument of counsel before Supreme Court... 254Decision of Supreme Court. 534

Section 5200, R. S., and section .13 of act, limita-tions under 28,193, 286, 519,528, 696, 879, 881

Section 22 of act:Interpretation of amendment to 614.694Resolution, suggested form of, to be adopted

when loans are made to directors, etc.. 614,695,929Serbia, loans made to,"by the United. States 781Short-term paper:

Advocated by Board 733. 739Renewal of.." K79

Silver:Monthly movement of the price of 842

Charts showing 843. 844Ratio of silver to gold, at various prices of silver. 843Value of pure silver in silver dollar 843

Charts showing 844Spain, Bank of, statement showing condition of 682Spokane, Wash., establishment of branch, of Federal

Reserve Bank of San Francisco in 339. 586Stamps, war-savings, plan for issue of 730, 925State banks and trust companies:

Admitted to system during the year 158. 347,439, 507, 603, 659, 734, 834, 933

Amendments to act regarding admission, of, rein-troduced in Congress. 336

American Bankers Association, resolution of.urging amendments to State laws permittingdeposits of reserves with Federal ReserveBanks 335

Applications for membership before com-mencing business 953

Capital less than $200,000, status of, for member-ship 764

Capital subscriptions on entering FederalReserve system (390

Conversion of, into a national bank (390Digest of procedure in connection with applica-

tions for membership 592

Page.State banks and trust companies—Continued.

Examination of, instructions to Federal "Reserveagents in connection with applications formembership \ 592-594

Hibemia Bank & Trust Co., New Orleans, La.,statement issued by, when joining sys tem. . . 667

Idaho banking department, statement issued by,regarding State bank membership '.. 599

Jones. Breckinriclge, statement "issued by,regarding membership oi Mississippi ValleyTrust Co" ".' 590 -598

List of, which have joined the svstem up toJuly 31, 1917 ' * 595

Membership in system, rulings regarding 764,950Mississippi*Valley Trust Co.j statement'issued

by, regarding membership in system 596-598New York State banks, cooperation of, in con-

n o ! of gold supply (>59Opinion by Attorney General construing sec-

tion 8 ol Clayton Act regarding interlockingdirectorates as affecting Stale banks \ 744

President of the United States, statement of,regarding State bank membership 827

Pciinsylva-iiia, act passed by legislature of, per-mitting State banks to joiti the system HOC

Powers of, which become members of Federal'Reserve System (196

Regulations of the Board regarding member-ship of 546

Statements issued by new members which havejoined the Federal Reserve System. 355, 598, 667, 834

Statements o£ Superintendent of Banks ofOregon, regarding membership of 934

Views of Federal Reserve Bank officer on ad-vantages of State-bank membership 84

"Views of 32 State banks regarding advantages ofmembership in system 355-372

State Department, warning as to banking transac-tions with enemy aliens 431, 655

State laws relating to trust powers of national banks. 528,697, 767

State laws affecting bank acceptances, abstract of. 529-53State laws relating to reserves, synopsis of 767-795Stationery, use of Federal Reserve note emblem on,

not permissible.. 194Sterling exchange rates 582; 683Stock in Federal Reserve Banks:

Payment of, pending approval of applicationfor membership • 287

Regulation of Board regarding increase or de-crease of 548

Surrender of, by liquidating bank 457Transfer of, to a national bank acquiring assets

of a liquidated bank 199Subtreasuries, substitution of Federal Reserve

Banks for, letter of Secretary of the Treasuryregarding '. 110-112

Sullivan Bank & Trust Co., Montgomery, Ala.,statement of, regarding membership in sys tem. . 359

Supreme Court of the United States, decision of, incase brought to test the constitutionality of sec-tion l l (k ) of act . 534

Sweden Riksbank, statement showing condition of- 681Swiss National Bank, statement showing condition

of 682Tax on telephone, telegraph, and express charges,

ruling of Commissioner of Internal Revenue o n . . 931Tax, stamp, on acceptances 950Tax on Federal Reserve Bank stock, opinion by judge

of United States district court of Ohio regarding.. 955Tax on promissory notes. 950



Page.Tax on income from Liberty bonds:

Opinion by Attorney General of the UnitedStates regarding 601

Rulings on, by Commissioner of Internal Reve-nue 459,930

Telegrams, cost of, relating to bond issue 439Time deposits and savings accounts, regulations of

the Board regarding 543Trade acceptances. (See Acceptances, trade.)Trading with the enemy act:

Executive order prescribing regulations forcarrying out i v - ": j of 860-863

Lincensin; companies under 838Textof.. . 851-860

Treasury bills,British 653Canadian.. 603, 652

Treasury certifi« Redness:Amounts he al Reserve Banks, state-

ments aho^-ssssss*35-" 416,490, 569, 644) 819, 909,982Announcem" ^tary of the Treasury re-

garding fir * (ftscoiwU ' of 341Allotment te êral Reserve Bank under

first nine i 846Amount and ;ation of first nine issues of.. 846Issues of.. 2\ 67,341,423, 651, 663, 729, 741, 830, 838Letter of Bo\ to Federal Reserve Banks re-

garding pu VJnase of 338Paper secured by, eligibility of, for rediscount. 457

Treasury Department:Circular regarding war savings certificates 927Statements regarding Liberty Loans 432,

505, 600, 734,932Treasury notes, discount of paper for use in trading

in bonds or notes 158Treman, R. H., address of, on trade acceptances.. 9,243Trust companies, regulations of the Board regarding

membership 546(See also State banks.)

Trustee, executor, etc., regulations of the Board re-garding national banks acting as 545

(See also Fiduciary powers.)United Kingdom:

Bank of England—Foreign agency established with 5Statements showing condition of 234,

329, 500, 681,943British short-time treasury bills, statement of

Secretary of the Treasury regarding 652Loans made by the United States to, April-

September, 1917 731

Page.United Kingdom—Continued.

National debt of, since outbreak of war 10War loans raised by 349

United States bonds:Amounts held by Federal Reserve Banks, state-

ment showing... 416, 490, 569, 644, 721, 819,909,982Circular of a Federal Reserve Bank relating to

purchase, etc., of, under section 18 of act 81Conversion operations of Federal Reserve

Banks, statements showing 415Coupons on, instructions for handling 938Discount of paper for use in trading in bonds or

notes 158Instructions of Board to Federal Reserve Banks

regarding conversion of outstanding bondsinto war bonds 341

Purchase, allotment, and conversion of, undersection 18 of act 5, 80, 238, 240, 341,507,879

War bond issue of 1898, subscriptions to 343(See also Liberty bonds.)

Usurious charges by national banks 292War Department obligations, purchase of, by

member banks 288War bond acts of 1917, text of 345, 749War loans raised by principal belligerent coun-

tries 349, 351War-revenue act, reprint of portions of 868-877War-savings certificates:

Committee appointed to handle 730Plan for issue of 730,918,925Substitution of, for gold coin as Christmas

gifts 931,951Warburg, Hon. P. M., redesignated as vice gov-

ernor of the Federal Reserve Board 659Warehouse receipts:

As security for purchase of acceptance, issuedindependent of the borrower 30

Paper secured by 456Regulation of Board regarding drafts drawn

against shipment of goods secured by 542Warrants:

Amounts purchased and held by Federal Re-serve Banks, distributed by maturities 65,143,

223, 319, 413, 488, 567, 642, 719, 816, 907,980Purchase of, rulings regarding 29, 32,193,194, 543

In excess of the 25 per cent limit 194Nonnegotiable 193

Regulations of the Board regarding 543Washington, laws of, authorizing national banks to

exercise trust powers 697Wills, D. C, address of, on trade acceptances 243


Documents

ISSUED BY THE FEDERAL RESERVE BOARD - … BY THE FEDERAL RESERVE BOARD AT WASHINGTON DECEMBER, 1917 WASHINGTON GOVERNMENT PRINTING OFFICE 1917 Digitized for FRASER ... FEDERAL RESERVE