frb_051926

FEDERAL RESERVEBULLETIN

MAY, 1926

ISSUED BY THE

FEDERAL RESERVE BOARDAT WASHINGTON

Prices, Production, and TradeBusiness Conditions in the United StatesAnnual Report of the German Reichshank

WASHINGTON

GOVERNMENT PRINTING OFFICE

1926

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

FEDERAL RESERVE BOARD

Ex officio members:

A. W. MELLON,

Secretary of the Treasury, Chairman.

J. W. MCINTOSH,Comptroller'of the Currency,

D. R. CRISSINGER, Governor.EDMUND PLATT, Vice Governor.ADOLPH C. MILLER.CHARLES S. HAMLIN.GEORGE R. JAMES.EDWARD H. CUNNINGHAM

WALTER L. EDDY, Secretary.

J. C. NOELL, Assistant Secretary.E. M. MCCLELLAND, Assistant Secretary.W. M. IMLAY, Fiscal Agent.J. F. HERSON,

Chief, Division of Examination,w_and Chief FederalReserve Examiner.

WALTER WYATT, General Counsel.

Director, Division of Research an&Statistics,

E. A. GOLDENWEISER, Acting Director, Division offResearch and Statistics..

E. L. SMEAD, Chief, Division of Bank Operations.

District No.District No.District No.District No.District No.District No.District No.District No.District No.District No.District No.District No.

FEDERAL ADVISORY COUNCIL

1 (BOSTON) . CHAS. A. MORSS, Vice President..2 ( N E W YORK) '. . . . JAMES S. ALEXANDER.3 (PHILADELPHIA) . . . L. L. R U E .4 (CLEVELAND) GEORGE A. COULTON.5 (RICHMOND).^ JOHN F. BRUTON.6 (ATLANTA) P. D. HOUSTON.7 (CHICAGO) »_- « FRANK O. WETMORE, President*.8 (ST. Louis) ; . - BRECKINRIDGE JONES.9 (MINNEAPOLIS) THEODORE WOLD.10 (KANSAS CITY) ______. . - P. W. GOEBEL.

11 (DALLAS) - - - - - ; - — B. A. MCKINNEY.12 (SAN FRANCISCO) _ . _ ' _ . . HENRY S. M C K E E .


OFFICERS OF FEDERAL RESERVE BANKS

Federal Reserve Bank of— Chairman Governor Deputy governor Cashier

BostonNew York.

Philadelphia.........

Cleveland

Richmond.— . . . .

Atlanta.. . . . . .

Chicago

St. LouisMinneapolis. _

Kansas City..Dallas

San Francisco.

Frederic 11. Curtiss..Pierre Jay.....

R. L. Austin

George DeCamp.

Wm. W. Hoxton

Oscar Newton...

Wm. A. Heath..

Wm. McC. Martin.John R. Mitchell-..

M. L. McClure..C. C.Walsh .....

Isaac B. Newton-

W. P. G. Harding..Benj. Strong . . .

Geo. W. Norris..

E. R. Fancher...

George J. Seay..

M. B. Wellborn.

J. B. McDougaK

D. C. Biggs...-R. A. Young

W. J. BaileyLynn P. Talley.J. U. Calkins

W. W. Paddock....J. H. CaseL. F. Sailer....G. L. HarrisonE. R. Ilenzel

Wm. H. Hutt

M. J; Fleming..Frank J. Zurlinden.C. A. Peple. . . . . .R. H. BroaddusJ. L. CampbellCreed Taylor _.C. R. McKay.......John H. Blair

O. M. AtteberyW. B. GeeryB. V. MooreHarry Yaeger*C. A. Worthington..R. R. Gilbert.R. B. ColemanWm. A. Day ...Ira Clerk—L. C. Pontious

W. Willett.L. H. Hendricks.iA. W. Gilbart.iJ. W. Jones.iRay M. Gidney.L. R. Rounds.1C. A. Mcllhenny.W. G. McCreedy.*H. F. Strater.

Geo. H. Keesee.John S. Walden, jr.iM. W. Bell.

W. C. Baehman.iK. C. Childs.iJ. H. Dillard.iD. A. Jones.*O. J. Netterstrom.*J. W. White.Gray Warren.Frank C. Dunlop.1

J. W. Helm.Fred Harris.

W. N. Ambrose.

* Controller. 2 Assistant deputy governor.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS

Federal Reserve Bank of—

New York:Buffalo branch ,

Cleveland:Cincinnati branchPittsburgh branch

Richmond:Baltimore branch .

Atlanta:New Orleans branch—Jacksonville branchBirmingham branch.........Nashville branch . . . . . .

Chicago:Detroit branch

St. Louis:Louisville branch „Memphis branchLittle Rock branch

Managing director

W. W. Schneckenburger.

C. F. McCombs.J. C. Nevin.

A. H. Dudley.

Marcus Walker.Geo. R. DeSaussure.A. E. Walker.J. B. Fort, jr.

W. R. Cation.

W. P. KincheloeW. H. Glasgow.A. F. Bailey.

Federal Reserve Bank of—

Minneapolis:Helena branch..

Kansas City:Omaha branch „Denver branchOklahoma City branch

Dallas:El Paso branch ________Houston branch .,

San Francisco:Los Angeles branchPortland branch.Salt Lake City branch. . . .

x Seattle branch.. ._Spokane branch..

Managing director

R. E. Towle.

L. H. Earhart.J. E. Olson.C. E. Daniel.

M. Crump.D. P. Reordan.

R. B. Motherwell.R. B. West.W. L. Partner.C. R. Shaw.D. L. Davis.

SUBSCRIPTION PRICE OF BULLETIN

THE FEDERAL RESERVE BULLETIN is the board's medium of communicationwith member banks of the Federal reserve system and is the only official organor periodical publication of the board. It contains, in addition to the regularofficial announcements, the national review of business conditions, detailedanalyses of business conditions, research studies, reviews of foreign banking, andcomplete statistics showing the condition of Federal reserve banks and memberbanks. The BULLETIN will be sent to all member banks without charge. Toothers the subscription price, which covers the cost of paper and printing, is $2.Single copies will be sold at 20 cents Outside of the United States, CanadaMexico, and the insular possessions, $2.60; single copies, 25 cents.

in


TABLE OF CONTENTS

The month: pageReview of the month—Prices, production, and trade in the first quarter of 1926.-_-_-. --_ 305Business conditions in the United States 309Debt funding agreements with France and Yugoslavia » ^ 331

Special articles:Loans of Federal farm loan system in 1925- _- _ -__--_. 329Foreign trade of United States, first quarter of 1926-- .1.. - , - __ __-„ 330Annual report of the German Reichsbank 340Annual report of the Bank of Poland 344

Official:Rulings of the Federal Reserve Board—

Change in Federal reserve district boundaries . ___ . . . 332Law department—

Authority of Congress for purchase of Buffalo branch bank building - _ 333Change in law regarding State taxation of national banks -—_-_- —-- 333

Changes in State bank membership . ,_ _ 333Changes in national bank membership. '__ 334Fiduciary powers granted to national banks ___- . ,_L 334

Business statistics for the United States:Industrial activity. _ . 335Commodity movements _ __ .,----- 337Wholesale and retail trade.. . . _. . . . . 338

Foreign banking and business conditions:Financial statistics for England, France, Germany, and Canada _ - _.-___- 350Foreign trade of principal countries __-. „ 353Price movements in principal countries-

Wholesale prices in principal countries 354Retail prices and cost of living in principal countries . 356

Banking and financial statistics:Federal reserve banks—

Condition of Federal reserve banks.,___..__ - _. 357Federal reserve note account - 361Holdings of earning assets - - - . 362Discount and open-market operations of Federal reserve banks . _ - - . _ _ 363Gold settlement fund .i_--- --_., -_-_ 374Discount rates of Federal reserve banks . 374

Member banks—Reporting member banks—

Condition of reporting member banks in leading cities . 364Bankers7 balances at reporting member banks in Federal reserve bank cities.-. 365Loans to brokers and dealers secured by stocks and bonds made by reporting member

banks in New York City - — _—..— — -- — ---..-.. — - — -.,.. — --- 365Earnings and dividends of State bank and trust company members— _ . 367All member banks—

Deposits - --.. . .--- 366Bank debits.-- — ——— 368Member banks and nonmember banks on par list and not on par list - - 369Money in circulation--- — 369Money rates in principal cities . ; . 370Gold and silver imports and exports __- — 372Foreign exchange rates -_ --------^ 373

IV


FEDERAL RESERVE BULLETINVOL. 12 MAY/1926 No. 5

- REVIEW OF THE MONTH

For a period of eight months commodityprices have had a gradual but continuous de-

cline, and in March the aver-Recession of a g e o j p r j c e s was more than 5

commodity prices & r

per cent below last summerand at the lowest level since the autumn of1924. This prolonged recession in prices,which for several months had reflected chieflydeclines in the prices of farm products, becamemore general after the beginning of this year,and at the end of the first quarter the pricesof nearly all groups of commodities were at alower level than at any time in more than ayear.

130

1923.

The course of prices of agricultural and non-agricultural commodities and of all com-modities for the past three years is shown inthe chart. In the spring of 1923 prices wereat a peak, having advanced about 15 per centfrom the low point at the opening of 1922.During the early months of 1923 industrialproduction had proceeded at a rapid rate andmanufacturers were unable to market theiroutput except by making concessions in price,with the consequence that there was a reces-sion in prices of industrial commodities. ByJune, 1924, prices of nonagricultural commod-ities had declined by about 12 per cent, while

prices of agricultural commodities showed amuch smaller reduction. The rise in the aver-age of prices after the middle of 1924 has re-flected largely an advance in agricultural prices,and more particularly an advance in the priceof wheat, which was caused by a shortage inthe world wheat crop. The price decline sincethe middle of 1925 has also been due for themost part to a recession of agricultural prices,including grains, cotton, wool, and livestock.Prices of industrial materials, on the otherhand, have remained fairly stable since themiddle of 1924.PER CENTJ 2 0

110

100

90

80

70

60

* \

INHII^TRIA!

AvVnbftni lrnrt/̂ vi

1923-1925 AVERAGE =100

1 .

rvA /

1924 1925 1926

PER CENT120

100

90

80

70

60

A new combined index of production of manufactures and minerals,based upon monthly statistics of daily average output, not adjusted

The relative stability of prices of industrialcommodities during the past 18 months has

Sustained in- accompanied a large growth industrial activity industrial production and inthe volume of trade. The large output ofbasic materials produced during the periodhas, in fact, been marketed at prices that formany commodities have shown a gradualrecession, indicating that in order to movetheir current output through the channels ofdistribution producers were obliged to makeconcessions in the prices of their products:

305


306 FEDERAL RESERVE MAY, 1926

This has been notably true of iron and steelproduction, which has been very active, whilethe prices of steel products have continuouslydeclined. There has also been a downwardtendency in the prices of building materials,at a time when construction work has beenin record volume. Many industrial enterprisesduring the past year have thus been conductedon a narrower margin of prices over costs andhave depended for their profits on a largevolume of output. Changes in the productionand prices of steel and of building materialsare shown in the charts.

50

1922 1923 1924- 1925 192G

That the general volume of industrial activityhas been exceptionally large is indicated bythe chart on page 305, which shows the courseof the Federal Keserve Board's revised index ofindustrial production since the beginning of1923. This index is based on the period1923-1925 as 100 and differs from the board'sindex of production in basic industries inthat it includes a wider range of industriesand particularly the production of automobiles,which has been an important factor in main-taining the volume of industrial output duringrecent years. In March of this year the outputof industries included in this index was largerthan at any previous time, and the averagefor the first quarter of 1926 was above thatfor any earlier three-months period. Thislarge volume of production has been sharedin by most of the important industries. Steelproduction, supported largely by a demand

from the railroads, from the construction in-dustry, and from manufacturers of automo-biles, was larger than in iahy previous quarter.Automobile production continued in largevolume, and was accompanied by considerableactivity in the manufacture of tires and tubes.Continued building operations on a large scalehave been an important influence in themaintenance of large outputs of lumber,cement, brick, and other building materials.Activity in the mining industry has also beenwell sustained. While most of the lines ofindustrial enterprise have been exceptionallyactive during the first quarter of 1926, certainlines of production, particularly woolen mills

1922 1923 1925 1926

Active trade

Production of steel ingots and Iron Age composite price of finishedsteel products

and shoe factories, have shown a markeddecline in activity during the first threemonths of the year.

The large volume of industrial production inrecent months has been accompanied by a

correspondingly active distribu-tion of commodities through the

channels of trade. Some growth in the volumeof stocks of materials in certain lines of pro-duction, particularly in the automobile industryand allied enterprises, has been reported, butthe increase in stocks, as indicated by availablestatistics, has not been general nor large involume. Railway shipments continued in 1926at the exceptionally high level of the latter partof 1925, and their total was larger for the firstthree months of this year than for the same


HAY, 1926 FEDERAL KESEKVE BULIiETIN 307

period of any previous year. Distribution bywholesalers has continued in large dollarvolume, notwithstanding the decline in whole-sale prices. The flow of merchandise from theproducer to the retail distributor has proceededwithout undue interruption or delay, and therehas been no evidence of a general accumulationof stocks in the hands of wholesale dealers.

Throughout the period of increasing pro-duction and primary distribution of com-modities there was a sustained demand forcommodities by consumers, both urban andrural, reflecting the relatively high earnings ofindustrial workers and the relatively goodreturns to farmers for their crops. In the case

DEPARTMENT STORE SALES AND STOCKSSEASONALLY ADJUSTED-1919=1OO

110

too1923 192*- 1925 1926

110

100

Indexes of sales at 359 stores and stocks at 314 stores, adjusted for seasonalvariations

of farmers the fact that the large receipts forthe 1924 grain crops enabled them to liquidatea considerable part of their indebtedness to thebanks made a larger part of their incomes in1925 and early in 1926 available for currentpurchases. The volume of sales by mail-orderhouses and by dealers in farm implements,which are the best available indications ofpurchases in rural districts, was consequentlylarge throughout 1925, and was larger for eachof the early months of the present year thanfor the corresponding months of the precedingyear. Department-store sales, which reflectbuying in urban centers, however, were not solarge in the early part of 1926 as in the latterpart of last year, even when allowance is made

for the usual seasonal influences. Though thesales in the first quarter of this year were con-siderably larger than for the correspondingmonths of 1925, they represent a decideddecline from the exceptional figures reached inthe autumn of last year, when department-storetrade, sustained by good earnings of the in-dustrial population and to some extent by thegrowth of installment buying, was in recordvolume. During this unusual growth in thevolume of retail trade the department storesincreased their stocks of merchandise in antic-ipation of continued trade expansion, andinventories at department stores are conse-quently larger than a year ago, as is indicatedon the chart, which shows the course of salesand of stocks at department stores since thebeginning of 1923.

This increase in the volume of stocks of mer-chandise carried by retail stores has been a

factor in causing a more thancommrrdal loans s^sonal growth in the demand

for commercial credit at thebanks. Thus loans for commercial purposes ofmember banks in leading cities increased by$200,000,000 between the end of January andthe middle of April, compared with an increaseof about $60,000,000 for the same period in1925. Last year, however, the growth in com-mercial loans was accompanied by a much largerincrease in loans on securities and a fairly con-stant volume of investments, so that there wasa considerable addition to the total volume ofmember bank credit outstanding. In 1926, onthe contrary, the larger increase in commercialloans, together with a considerable growth inthe banks7 investment holdings, has been forthe most part offset by a decline in loans on se-curities, with the consequence that in the mid-dle of April total loans and investments of mem-ber banks in leading cities were only slightlylarger than' at the close of the seasonal liquida-tion at the end of January. In the decline ofsecurity lo ans the principal factor has been thereduction in loans to brokers and dealers in theNew York security market, a decline which hasbeen largely caused by a sharp recession insecurity prices. The volume of these loans from


308 FEDEBAL RESERVE BULLETIN MAY, 1926

a total "of $3,139,000,000 on February 17 declinedcontinuously and rapidly to $2,451,000,000 onApril 14, a reduction of $688,000,000 for thetwo-months period. The rapid decrease insecurity loans, together with the inflow duringthe quarter of about $75,000,000 of gold,chiefly from Canada, resulted in a reduceddemand for accommodation at the Federal re-serve banks, and the total volume of reservebank credit outstanding toward the end of Aprilwas about $70,000,000 less than in the middleof February, and about $100,000,000 above thelevel of the spring of 1925. Thus the bankingsituation in the first weeks of the second quar-ter of 1926 has been characterized by a con-tinued large volume of bank credit outstanding,a reduced volume of security loans, a growingdemand for commercial credit, and a relativelysmall indebtedness at the reserve banks.

NOTES

Change in discount rate

On April 23, 1926, the discount rate at theFederal Reserve Bank of New York on allclasses of paper and all maturities was re-duced from 4 to 3 J^ per cent.

Hearings on Strong bill for price stabilization

Since March 24 the Committee on Bankingand Currency of the House of Representativeshas been holding hearings on H. R. 7895, in-troduced by Representative James G. Strong,of Kansas. This bill proposes to amend sec-tion 14 (d) of the Federal reserve act to readas follows :

(d) To establish from time to time, subject to re-view and determination of the Federal Reserve Board,a minimum rate of discount to be charged by suchbank for each class of paper, which shall be madewith a view to accommodating commerce and pro-moting .a stable price level for commodities in general.All of the powers of the Federal reserve system shallbe-used for promoting stability in the price level.

Those who have so far appeared before thecommittee are Mr. G. H. Shibley; Prof. IrvingFisher; Mr. Norman Lombard; Mr. Frank A;Wolff; Mr. William T. Foster; Prof. JamesHarvey Rogers; Mr. Western Star; Mr. Wil-liam Elwood Lee; Governor Strong, of theFederal Reserve Bank of New York; Gover-nor Norris, of the Federal Reserve Bank ofPhiladelphia; Prof. O. M. W. Sprague; Mr.Carl Snyder; Mr. Ethelbert Stewart; Mr.Adolph G. Miller, of the Federal ReserveBoard; and Mr. Walter W. Stewart.


MAT, 1926 FEDERAL RESERVE BULLETIN 309

BUSINESS CONDITIONS IN THE UNITED STATESIndustrial output increased in March and the distribution of commodities continued in

large volume owing to seasonal influences. The level of wholesale prices declined for the fourthconsecutive month.

Production.—-The Federal Reserve Board's index of production in basic industries increasedin March to the highest level for more than a year. Larger output was shown for steel ingots,pig iron, anthracite, copper, lumber, and newsprint, and there were also increases in the activityof textile mills. The output of automobiles increased further and was larger than in any pre-vious month with the exception of last October. Building contracts awarded also increased inMarch, as is usual at this season, and the total was near the high figure of last summer. Par-ticularly large increases in building activity as compared with a year ago occurred in the NewYork, Atlanta, and Dallas Federal reserve districts. Contracts awarded continued largerduring the first half of April than in the same period of last year. Condition of the winterwheat crop has improved since the turn of the year and on April 1 was estimated by the Depart-ment of Agriculture to be 84 per cent of normal, compared with 68.7 per cent last year, and anaverage of 79.2 per cent for the same date in the past ten years.

Trade.—:Wholesale trade showed a seasonal increase in March, and the volume of sales waslarger than a year ago in all leading lines except dry goods and hardware. Sales of departmentstores and mail-order houses increased less than is usual in March. Compared with March ayear ago, sales of department stores were 7 per cent and sales of mail-order houses 9 per centlarger. Stocks of principal lines of merchandise carried by wholesale dealers, except groceriesand shoes, were larger at the end of March than a month earlier, but for most lines they weresmaller than a year ago. Stocks at department stores showed slightly more than the usualincrease in March and were about 3 per cent larger than last year. Freight-car loadings duringMarch continued at higher levels than in the corresponding period of previous years. Ship-ments of miscellaneous commodities and merchandise in less-than-carload lots were especiallylarge. Loadings of coal, owing to the large production of anthracite, were also large, whileshipments of coke decreased considerably from the high levels of preceding months.

Prices.—Wholesale prices, according to the Bureau of Labor Statistics index, declinedby more than 2 per cent in March to the lowest level since September, 1924. The decline wasgeneral for nearly all groups of commodities, and the largest decreases were noted in grains,cotton, wool, silk, coke, and rubber. In the first two weeks of April prices of basic commod-ities were steadier than in March. Prices of grains, flour, and potatoes increased, while pricesof cotton goods, wool, silk, bituminous coal, pig iron, and rubber declined.

FACTORY EMPLOYMENTAND PAY ROLLS

1922 1923 1924 1925 1926

Federal Keserve Board's indexes of factory employment and pay rolls.(1919=100.) Latest figures, March, employment, 97.2; pay rolls, 113

94033—26 2

PER CENT2001

150

100

50

WHOLESALE PRICES

PER CENT— •—1200

1922 1923 1924

150

100

SO

1925 1926

Index of United States Bureau of Labor Statistics. (1913=100, baseadopted by bureau.) Latest figure, March, 152


310 FEDERAL KESEBVE BULLETIN MAY, 1926

300PERCENT

300

250

I I

BUILDING CONTRACTS AWARDED

100

50 50

1922 1923 1924- 1925 1926

Index of value of building contracts awarded as reported by the F. W.Dodge Corporation. (1919=100.) Latest figure, March, 231

BILLIONS OF DOLLARS BILL1OHS OF DOLLARS2

1922 1923 1924- 1925 1926

Monthly averages of daily figures for 12 Federal reserve banks. Latestfigures are averages for first 22 days in April

Bank credit.—Commercial loans of member banks in leading cities were relatively constantbetween the middle of March and the middle of April, at a level about $200,000,000 higher thanat the end of January and approximately equal to the high point reached last autumn. Con-tinued liquidation of loans to brokers and dealers was reflected in a further decline in the totalof loans on securities, which on April 14 were more than $500,000,000 below the high pointreached at the end of last year.

At the reserve banks an increase in the volume of member bank borrowing during the lasttwo weeks of March was followed by a marked decline in the first three weeks of April, whichbrought the total near the lowest levels of the year. Holdings of United States securitiesincreased continuously during the month, while acceptances declined seasonally. Total billsand securities were in smaller volume at the end of the period than at any other time during theyear and only slightly larger than a year ago.

Open-market rates on commercial paper declined in April from 43^-4 3^ P.er c e n^ ̂ ° 4-4J^per cent, and rates on acceptances and on security loans were also lower in April than in March.On April 23 the discount rate at the Federal Reserve Bank of New York was reduced from 4to 3K per cent.

BUSINESS INDEXES OF THE FEDERAL RESERVE BOARD[Monthly average 1919=100]

Year and month

1925JanuaryFebruaryMiarchApril _ _May - -- -JuneJuly _-„_—AusfustSeptember -October * - --NovemberDecember -

1926JanuaryFebruary - .March .

Produc-tion inbasic

indus-tries i

127124120119111110113109111116115121

120120123

Factoryemploy-

ment

949696969594939495979797

969797

Factorypay rolls

103109110107107105102105104111112112

107112113

Buildingcontractsawarded *•

164166172169151173188225235210229276

243208209

Railroad-car

loadings1

123125117129123117122123121121121130

118127126

Whole-sale

trade

797683797983838794

1018680

787685

Department-storesales1

Unad-justed

1081011211361281269598

121165145226

114104130

Adjusted

124131121133124126128125134145129141

130135130

Department-storestocks i

Unad-justed

119127139141136129125131143149154129

125132143

Adjusted

134135137136137135133131133134137139

141140141

Bankdebitsoutsideof NewYorkOityi

119118118120118122124120

. 123128122124

126128131

i The indexes of production in basic industries, building contracts, car loadings, and bank debits are adjusted to allow for seasonal variation;the indexes of department-stores sales and stocks are shown both with and without seasonal adjustments.


MAY, 1926 FEDERAL RESERVE BULLETIN •3:11

MONEY RATES

Prime commercial paper continued to bequoted at 4 3^-4 H per ^n^ during the firstthree weeks of April, with the majority ofnames going at 4 J^ per cent. The supplyremained limited throughout the month,while the demand became more active duringthe last two weeks both in the interior and inNew York City. On April 23 the quoted ratebecame 4 34 per cent and on the following day4-4 34 per cent. Rates on bankers' acceptancesof all maturities over 30 days were reducedby y% per cent on April 7, making the offeringrate on 60 and 90 day bills 3J^ per cent/ thelowest rate in effect since early in January.On April 22 a further reduction occurred and90-day bills were offered at 3 ^ and later at33^ per cent. The price of both short andlong-term Government securities rose through-out April, yields on 434 P e r c ent Libertybonds reaching the lowest levels since lastSeptember. Rates on call money hardened to5 per cent over the first of April, but laterdeclined and after the 19th of the monthfluctuated between 33^ and 434 per cent. Thediscount rate of the Federal Reserve Bank ofNew York was reduced from 4 to 33^ per centeffective April 23. The table below showsmoney rates prevailing in the New Yorkmarket during the last three months:

MONEY RATES IN NEW YORK CITY

Montli

Primecom-

mercialpaper,

4-6months

April, 1925January, 1926—.February, 1926 . .March, 1926.—_- —April, 1926...Week ending-

Apr. 3_Apr. 10Apr. 1 7 — — - _.Apr. 24

4M4M

Primebank-

ers'accept-ances,

90days

Average yieldon—

U.S .Treas-

urynotesand

certifi-cates,

3-6months

per centLibertybonds

2.783 3.493 3.18

/ 3 3. 03\4 3.25

*3.08

4 3.214 3.154 3. 074 3.04

3.964.044.013.983.94

3.973.963.943.93

Average rateon—

Callloans 1

3.864.334.854.554.06

4.944.204.403.85

Timeloans2

3.954.794.684.724.29

4.664.504.394.23

1 Renewal rate.2 Weekly average of daily average rates on principal maturities.3 Issues maturing June 15,1926.< Issues maturing Sept. 15,1926.

In the London money market rates showedlittle change during April. Three-monthsbank bills were quoted at 4f per cent the thirdweek in April as compared with 41

2g- per centthe third week in March, and Treasury bills

were tendered at an average rate of 4.395 percent that week.

ACCEPTANCES

During the last two weeks of March thesupply of acceptances in the New Yorkmarket increased slightly and the demandremained good, with the continuance offoreign buying and relatively easy money con-ditions. Early in April the demand in-creased substantially a,nd dealers, finding somedifficulty in replenishing their portfolios, re-duced their rates on April 7 by P$ per cent onall except 30-day bills. Firmer money con-ditions soon afterwards, due in part to exportsof currency to Cuba, resulted in heavy offeringsof bills in both the New York and Bostonmarkets, with a practical cessation of demand,and large sales to the reserve banks, chiefly ofbills with maturities of 30 days or less. Thetotal volume of purchases reported by NewYork dealers during the period from March 18to April 14 was the largest since December, andtheir sales, excepting sales to Federal reservebanks, were the smallest. Their portfolios onApril 14 were larger than on any other report-ing date for the last three years. Similar con-ditions characterized the Chicago market,where dealers reported a slight decline inpurchases, a large decline in sales, and in-creased portfolios at the end of the period.Cotton and coffee were the commoditieschiefly represented by the bills in the market,with a considerable recent increase in thenumber of sugar bills.

Bill rates in New York at the beginning andend of the reporting period are given in thefollowing table.

ACCEPTANCE RATES IN THE NEW YORK MARKET

Maturity

30 days....60 days....90days.._.120 days...150 days...180 days..

March 18, 1926

Bid Offered

Per cent Per cent

April 14, 1926

Bid Offered

Per cent

t,%37/

Per cent

CAPITAL ISSUES

The volume of new domestic securities issuedin March, according to the compilation of theCommercial and Financial Chronicle" wasamong the largest of recent years, being ex-ceeded in 1925 only by the issues of Decemberand in 1926 by those of January. The totalfor the first quarter of 1926 amounted to


312 FEDEKAL, EESERVE BULLETIN MAY, 1926

$1,598,000,000, as compared with $1,360,-000,000 in the first quarter of 1925. The sizeof the total is accounted for chiefly by thevolume of corporate flotations, which was thelargest on record in January and in Marchnext to the largest. Municipal issues in Marchwere moderate in amount as compared withprevious months. Of the corporate issues, overtwo-thirds were those of industrial corpora-tions, which showed a large increase overFebruary. Railroad offerings also showed anincrease, but those of public utilities a decline.The accompanying table shows the domesticsecurities issued in March, 1925, and in Feb-ruary and March, 1926.

DOMESTIC CAPITAL ISSUES[In millions of dollars]

Total

CorporateLong-term "bonds and

notesShort-term bonds and

notesStocks

Farm loan issuesMunicipal

March

New

558.2

416.1

218.2

24 1173.829.3

112.8

, 1926

Re-fund-ing

38.8

37.2

34.9

1 01.3.2

1.4

February,1926

New

472.8

323.7

172.8

28 2122.7

4.3144.8

Re-fund-

ing

25.6

25.0

22.6

2.4

March

New

367.9

247.9

153.2

14 480.311.5

108.5

,1925

Re-fund-ing

75.9

70.3

70.3

3.02.6

The volume of foreign securities issued inthe United States in March, according to thecompilation of the Federal Reserve Bank ofNew York, was smaller than in any monthsince last August. An unusually large shareof the total, nearly one-half, was issued bycorporations. The following table shows theforeign offerings during the first three monthsof this year, classified geographically anddivided between those of corporations and ofgovernments, including provinces and munici-palities.

FOREIGN CAPITAL ISSUES[In millions of dollars]

Total new issues ._Europe,. _.-Canada and Newfoundland.Latin AmericaUnited States insular pos-

sessions internationalInternational ._ i._.

Eefunding issues. _ ___-_.

Total new and refunding. _

March,1926

Gov-ern-ment

23.23.76.0

13.5

3.0

16. 2

Cor-po-rate

21.714.94.8

2.0

21.7

February,1926

Gov-ern-ment

44.042.02.0

40.0

84.0

Cor-po-rate

20.414.06.4

3.6

24.0

January,1926

Gov-ern-ment

38.013.210.28.9

5.7

To46.0

Cor-po-rate

32.230.11.4

.7

*T637.2

SECURITY PRICESDuring April the prices of representative

common stocks recovered about half of theirMarch xlecline as measured by the price indexof 232 stocks computed by the Standard Sta-tistics Co. The index of railroad stock prices,which had declined less rapidly than that ofindustrials in March, increased almost assharply in April, and on April 26 was slightlyhigher than at the middle of last Novemberand but 6 points below its high record at theend of December. Industrial stocks were alittle below their levels following the Novem-ber decline and about 11 points below theirJanuary peak. After showing unusual activ-ity during the first week of April, the stockexchange was relatively quiet through the restof the month, as indicated by the number ofshares sold daily. Bond prices, which haddeclined in March, increased during; April tothe highest levels since 1917. The followingtable gives indexes of stock prices computedby the Standard Statistics Co. of New York,the average price of 40 bonds computed byDow, Jones & Co., and the average number ofshares of stock sold daily on the New YorkStock Exchange for the last six months and forApril a year ago:

INDEX NUMBERS OF SECURITY PRICES

Average for—April, 1925November, 1925 _.December, 1925January, 1926February, 1926.March, 1926April, 1926_.

Average for week ending—Apr. 5___Apr. 12. . . i.Apr. 19

. Apr. 26

Price indexes of1—

201 in-dustrialstocks

123.4150.4151.6153.7154.9144.0139.8

140.2136. 8137.3145.0

31 rail-road

stocks

107.7120.0125.4125. 5123.5119.4118.5

118.0117.1117.3121.6

Total,232

stocks

118.8141.6144.0145.5145.7136.7133.6

133.7131.0131.4138.1

Aver-age

priceof 40

bonds2 •

91.6292.4492.7693.4694.3193.9494.52

93. 9394.3394.7995.03

Averagenumberof sharesof stock

sold daily(000

omitted) 3

1,0882,3971,8831,7661,8061,7901,339

2,6371,1051,3571,493

1 For the industrial stocks, the average of 1917-1921 prices equals 100,for the rails the average of the high and low prices made in the 10 years,1913-1922, equals 100. The indexes are weighted by the number of sharesof each stock outstanding. Prices used are closing quotations on Mon-day.

2 Arithmetic average of daily average closing prices, as published inthe Wall Street Journal. Weekly averages are for week ending withSaturday preceding date given.

3 Saturday omitted. Weekly averages are for five days ending withFriday preceding date given.

AGRICULTURAL CREDITDuring the first quarter of 1926 rediscounts

at Federal intermediate credit banks increasedapproximately $10,000,000, which representedadvances chiefly to agricultural credit corpora-tions, although advances to livestock loancompanies also showed a nominal increase.


MAY, 1926 FEDERAL RESERVE BULO^ETIN 313

All Federal intermediate credit banks, with theexception of those at Springfield and Wichita,increased their holdings of rediscounts duringthe quarter.

A net reduction in direct loans approximat-ing $5,600,080 took place during the sameperiod, reductions being made in loans basedon tobacco, wheat, canned goods, peanuts,and wool, while cotton and rice loans showedan increase. All banks reduced their directloans with the exception of those located atBaltimore, St. Louis, and Houston, whereadditional advances were made on tobacco,coffee, rice, and cotton.

During March outstanding direct loans werereduced by about $4,000,000, all classes ofloans, with the exception of those based onraisins and rice, showing a decline. Reductionin cotton, tobacco, and wheat loans accountedfor a greater part of the repayments. Duringthe first half of April an additional reductionof about $2,500,000 was made in tobacco loans,and nominal reductions were also made inother commodity loans with the exception ofthose based on raisins and rice, the formerremained unchanged while the latter continuedto increase.

Rediscounts during March increased by$6,700,000, with a further expansion of about$3,400,000 in the period ending April 17.Practically all of this increase representsadvances to agricultural credit corporations,the Columbia (S. C.) bank alone advancingover $5,000,000 during March.

Loans based on eligible commodities andrediscounts for the different financial institu-tions for the latest available date in April areshown in the accompanying table:

INTERMEDIATE C R E D I T B A N K S[In thousands of dollars]

Direct loans outstanding o n -CottonTobacco .WheatCanned fruits and vegetablesRaisins 'Prunes >PeanutsWoolRiceAllother _._

Total

Rediscounts outstanding for—Agricultural credit corporationsNational banksState banks.i .:Livestock loan companiesSavings banks and trust companies

Total

Apr. 17,1926

23,98512,8741,369

4123,600

65108

• 978340

43,731

27,12713

45212,088

15

39,695

Mar. 20,1926

26,47915, 5881,910

4893,600

84157894432

49,633

21,39034

41712,046

65

33,952

Apr. 18,1925

2,99419,4341,019

2014,0001,216

337

25675

29j 532

• 17,8418

66710,006

96

28,618

Federal land banks increased their net out-standing farm loans by $21,676,000 during thefirst quarter of 1926, as compared with$26,697,000 for the same period in 1925.Joint-stock land banks during the first threemonths of this year increased their net holdingsof farm loans in the amount of $33,898,000, orapproximately $3,245,000 more than thevolume secured in the corresponding periodlast year. Reporting life-insurance companiesincreased their holdings of farm mortgageloans in the amount of $20,000,000 during thefirst quarter, or less than the volume of$22,000,000 purchased in the same period ayear ago.

Net outstanding loans for both Federal andjoint-stock land banks increased in approxi-mately the same amount during March as inthe previous month, the former increasing$8,000,000 and the latter $12,000,000. Thefollowing table shows the outstanding volumeof net mortgage loans at the end of March heldby 12 Federal land banks, 53 joint-stock landbanks, and 41 life-insurance companies owningmore than 82 per cent of the assets of alllife-insurance companies:

N E T FARM MORTGAGE LOANS OUTSTANDING

[In thousands of dollars]

Total, all joint-stock land banks.Total, Federal land banks_ . . .41 life-insurance companies

March 31,1926

. 579,4571,027,3611,543,000

March 31,1925

477,082954,265

1,474,000

AGRICULTUREAgricultural operations and marketing of

early fruit and vegetables in the South weredelayed in March and the early weeks of Aprilby unfavorable weather, and in other sectionsreports indicate that spring farm activitieswere somewhat retarded. Ranges, on theother hand, throughout nearly all sectionsexcept in California were in materially bettercondition at the opening of spring than inother recent years, and livestock show muchimprovement over last year. Reports by theDepartment of Agriculture indicated that thecondition of the winter wheat crop improvedconsiderably between December and April andthat the average condition of the crop on April1 was considerably better than a year ago andthe average condition for the past 10 years.On the basis of this improvement in thecondition of the crop some commercial esti-mates indicate that the yield will be between


314 FEDERAL RESERVE BULLETIN" MAY, 1926

547,000,000 and 590,000,000 bushels, as com-pared with a final yield of 398,486,000 bushels in1925 and 589,632,000 bushels in 1924.

In March farm prices declined 2 per centfrom the level of January and February, andthe index of 30 commodities prepared by theDepartment of Agriculture was 7 per centlower than in March of last year. This de-cline in farm prices since last year reflectslargely the decline in the prices of grains andcotton. The price of grains declined in Marchto the lowest level since July, 1924, and thatof cotton was lower than at any time sinceMarch, 1922. Livestock prices averaged 10 percent higher in the first quarter of 1926 than in1925, and in March they were near the highlevels reached in the summer of 1925. Pricesof fruits and vegetables were higher in thefirst three months of the year than at any time

PERCENT25or—

200

4cn

100

frfl

0

-A

EX 30RTS OF AGRICULTURAL PRODUC(JULY 1909-JUNE 191̂ = 100 )

J

A/ \\V

n-s

Ah/ \V

PER CENT250

2 0 0

50

1922-23 1323-24- 1924 -25 1925-'26

since 1920. Farm wages at the beginning ofApril were slightly higher this year than in1925 and 1924, and the supply of farm laborwas somewhat smaller than last year.

Total exports of agricultural products, asmeasured by the Department of Agriculture'sindex, were in about the same volume in Marchas in February, but, due largely to smaller ex-ports of cotton and grains, they continued muchsmaller than last year. Foreign takings ofdairy products and eggs increased about 50per cent in March and were 20 per cent largerthan last year. Fruits and vegetables, to-bacco, and certain pork products were exportedin slightly larger volume than in March, 1925,

Grains.The condition of the winter-wheat crop as of

April 1 is reported by the Department ofAgriculture at 84.1 per cent of a normal,compared with 68.7 on April 1, 1925, and 79.2,the average condition for the last 10 years.

From December 1, 1925, the date of the lastcondition report, there has been an increasein condition of 1.4 points, which is in contrastwith the usual trend of condition reports,the change in condition between the abovedates for the last 10 years representing anaverage decline of 5.7 points.

After reaching the highest point of theseason in early January, wheat prices havemaintained a downward trend throughout thefirst quarter and reached the lowest level of theyear in the first half of April. Since that timethere has been a slight recovery and the markethas shown some strength. Exports of wheatfrom this country have been at extremely lowlevels, and the total supply available for exportin the principal exporting countries, Australia,Argentina, Canada, and the United States,

MILLIONS OF BUSHELS -MILLIONS OF BUSHELS

EXPORTS OF WHEAT AND FLOUR

1921 1922 1923 1924- 1925 1926

together with shipments afloat, is estimated tobe 40,000,000 to 50,000,000 bushels smallerthan a year ago.

Corn prices declined to new low levels inMarch, but the market displayed some strengthtoward the close of the month as cereal manu-facturers and feeders were active in theirpurchases. The usual seasonal decline inmarketing restricted receipts to such an extentthat they were barely sufficient to meet currentneeds. Further improvement was made in thecorn market during the first two w;eeks of Aprilas receipts continued light and demand wasactively maintained. The quality of the cornmarketed during April is reported to be muchimproved, although considerable high-moisturecorn is still in evidence.

An active demand was maintained for oatsduring March and, although prices declinedalong with the other grains, prices have heldgenerally firm. Receipts of oats at the princi-


MAY, 1926 FEDERAL RESERVE BULLETIN 315

pal markets during the first quarter have beent>elow those of last year and at several markets,recently, the demand has exceeded currentreceipts. Although stocks are considerablylarger than normal they are being reduced at arapid rate. Export trade has been active and a€onsiderable movement from the lake ports isexpected with the opening of navigation. Thenew crop in the Southwest is reported to bemaking favorable progress, and it is expectedthat harvesting will start in southern Texasduring the last of May.

The estimated exportable surplus of Argen-tine flaxseed has been placed at 47,164,000bushels, which is approximately 50 per centgreater than the estimated surplus of last year.Prices in this country during 1926 haveworked to a lower level, No. 1 flaxseed reaching$2.24 at Minneapolis in early March. At theclose of the month, however, the price hadadvanced to $2.31.Cotton

In the late winter and early spring monthsrainfall throughout the cotton-growing Statesresulted in considerable subsoil moisture, butthe continued cold weather and frequent rainsdelayed preparations and plantings in the lateweeks in March and early weeks of April inthe greater portion of the belt. The season isgenerally later than last year. Early plant-ings in sections of Florida were retarded bycold weather early in April and much replant-ing is necessary. In southern Texas, on theother hand, the stand of early planting cottonwas generally good and cultivation satisfactoryup to the middle of April. Reports fromnearly all cotton-growing States indicate thatefforts are being made to increase the acreageof food and feed crops and to reduce the acre-age planted to cotton, but it is yet too earlyto ascertain the extent to which a reductionin cotton acreage will actually be made.

Since January takings of American cottonby domestic and foreign spinners has beensmaller each week than in the correspondingweeks of last year, and at the end of Marchtotal takings for the season were only 4 percent larger than last year. This falling off intakings since the beginning of the year issignificant when considered in relation to thefact that in the autumn months takings wereconsiderably larger than in the preceding year,and up to the first of January they wereabout 20 per cent larger than the year before.Exports declined again in March, and for theseason through March they were 6 per centless than a year ago. Changes in the monthlyvolume of cotton exported in recent years and

a comparison of exports this year with those oflast year are shown in the chart.

As a result of the large crop in 1925 and thesubsequent decline in takings and exports,total stocks at mills and public warehousesand compresses at the end of March were thelargest for that date since 1922, but the largerpart of the increase was in stocks at ware-houses and compresses. Stocks on March 31since 1922 are as follows:

STOCKS OF COTTON

[Bales]

March 31

1022.1923.3924.1925.1926.

Mills Warehouses Total

1,557,0002,034,0001,504,0001,635; 0001,768,000

3,752,0002,380,0002,001,0002,025,0004,163,000

5,309,0004,414,0003,505,0003,660,0005,931,000

50

1922-'23 1923-'24- 1924-25 1925-26

In March and the early weeks of Aprilprices of raw cotton fluctuated within narrowJimits, but they averaged lower than at anytime since early in 1922. A larger proportionof the cotton remaining in the South is oflower grade than ordinarily, and the pricedifferences for the lower grades are generallythe widest since 1921 and in some cases since1920.Tobacco.

Practically all of the tobacco markets openat the beginning of March were closed duringthe month or early in April. The crop thatwas sold by producers in March and April wasgenerally of a very low grade, as is usually thecase at the end of the season, and prices fornearly all types were lower than last year.Preparations are being made for planting thenew crop, but weather conditions so far havesomewhat delayed operations. In sections ofthe burley tobacco ' district of Kentucky


316 FEDERAL RESERVE BULLETIN MAY., 1926

reports indicate a disposition to curtail acreage,but in the dark-fired and air-cured tobaccosections in that State the possibility of growingburley is being considered. Exports of leaftobacco since the beginning of the marketingseason last summer have been larger eachmonth, except October, than in the precedingyear, and for the entire period, nine months,they were 24 per cent greater than in thecorresponding period of last season. Com-pared with the corresponding period in otherrecent years, exports this year were larger thanin 1923, 1922, and 1921, but were smaller thanin 1920 and 1924.

In the tobacco-manufacturing industry pro-duction in the first quarter of 1926 was largerthan in 1925 for large cigars, cigarettes, andmanufactured tobacco products, but the out-put of small cigars was considerably less thana year earlier. In January and February theoutput of cigars was much smaller than inthe first two months of last year, but in Marchactivity in all branches of the industry wasmaintained at a higher level than in 1925, andfor the first time in recent months the produc-tion of cigars exceeded that of the year before.

Fruits and vegetables.Marketings of fruits and vegetables during

the first quarter of 1926 have been in lowervolume than in the corresponding period a yearago. Shorter crops of certain products, partic-ularly potatoes and cabbage, have contributedto the restricted movement. Shipments ofsouthern vegetables have been in smallervolume as a result of the unseasonable weatherwhich has delayed the progress of croj>s andreduced the output. With the exception ofapples, practically all the more importantfruits and vegetables have sold at prices equalto or higher than those realized in the firstquarter of 1925.

Citrus fruits in both Florida and Californiaare reported to be making satisfactory progress.Southern peach orchards, however, were dam-aged by the March freeze and crop prospectshave been somewhat impaired. Reports offrost damage to the fruit crop are of more orless localized nature, many sections, such asthe commercial peach area in North Carolina,reporting excellent prospects. In the OzarkMountain region of northern Arkansas andsouthern Missouri some damage to early fruithas been reported.

The situation in the apple market remainsdistinctly unfavorable, as the heavy suppliescontinue to be a dominant factor in the situa-tion, combined storage stocks on April 1 being

44 per cent heavier than a year ago. Demand,both domestic and export, has exceeded that oflast year, but has not been sufficiently large toeliminate the excess stocks.

Garden and truck crops in the SouthernStates have been handicapped by weather thathas been generally too cool and wet. Reduceddomestic supplies have been augmented byimports, the March figures being about doublethose of a year ago. The imports were mainlytomatoes and peppers from Mexico and Cubaand onions from Spain and Egypt. Increasesin the prices of potatoes, onions, tomatoes, andsweet potatoes took place during March, andvegetables as a whole continue to sell at ahigher level than a year ago.

In eastern markets, potatoes have beenquoted at $5 to $6 per 100 pounds, and thehigher prices have brought out a fairly liberalsupply for this time of the year. A consid-erable amount of low-grade stock has increasedthe supply to such an extent that the car-lotmovement, despite the short crop, does notshow a great reduction below the figures of230,000 cars a year ago. The movement of newpotatoes from Florida and Texas is late ingetting under way, but is now moving in fairvolume.Livestock.

Range conditions are reported by the-Department of Agriqulture as being betterthan the average, with the exception of Cali-fornia, but conditions there were improved byrains during early April. In the Southwest,the ranges are the best in . years and there is-sufficient moisture to provide later feed. The*condition of the ranges is reported at 91 percent on April 1, as compared with 90 percent a month previous and 80 per cent on-,April 1, 1925,

Cattle and sheep came through the winterwith very light losses and are reported to bein generally good condition. The Department,of Agriculture reports the condition of cattle*as 93 per cent and sheep as 98 per cent, com-pared with 84 and 91 per cent, respectively, onApril 1, 1925. Available reports as to lambingare very favorable and a good crop is indicated.Demand for stockers and breeding stock is re-ported to be the best in recent years, indicating-that there is some movement to increase herds.

During the first quarter of 1926 the move-ment of cattle to feed lots was at approxi-mately the same rate as in 1925. The De-partment of Agriculture estimates that the-number of cattle on feed in the Corn BeltStates on April 1, 1926, was practically the*.


MAY, 1926 FEDEKAI, BESERVE BULLETIN 317

same as a year ago. As to the months ofmarketing, intentions reported by feeders indi-cate that a larger percentage will be marketedin April and May as compared with reportedintentions of last year.

Receipts of cattle and calves at the principalmarkets during the first three months of theyear were in approximately the same amountas in the corresponding period in 1925. Re-ceipts of hogs, on the other hand, were about20 per cent less, although receipts for the cur-rent March displayed a very slight increaseover the same month a year ago. An increaseof slightly more than 8 per cent took place inshipments of sheep during the current firstquarter as compared with last year.

Average prices on native beef steers at theChicago market were about the same as inFebruary, but approximately 65 cents per hun-dred under March, 1925. Values declined tothe lowest level of the year in early April.Fat cows and heifers averaged 60 cents higherduring March as compared with the precedingmonth, but this gain was practically eliminatedin the lower market of April. Grass-fed cattlefrom the Southwest made their appearance inthe market, and a heavy supply of discardeddairy cows has offered considerable competi-tion to the general run of average-grade cattle.Demand for stockers was stimulated by thelower level of prices, and heavy shipments areanticipated as pastures become available inthe Central States.

Marketing of heavy-weight hogs duringMarch increased, with average prices slightlylower than in the preceding month. Marchprices were $1.50 under those of a year ago.Receipts at the principal marketing centersduring the month totaled 3,579,000 head, ascompared with 3,528,000 head for the corre-sponding period a year ago. March receiptsshow an increase over February of approxi-mately 200,000 head.

Average lamb prices in March were belowthose of February and a further decline tookplace in April, average prices for the week end-ing April 10 being $12.80 at the Chicago mar-ket. The level of prices is more than $3 belowthat of the corresponding period of 1925. Themovement from Colorado and Nebraska feedlots has practically been completed, and re-turns to the feeders, on the whole, were notconsidered satisfactory.

The average prices of livestock at the Chi-cago market for March, with comparisons, isreported by the Chicago Federal Reserve Bankas follows:

94033—26 3

AVERAGE PRICES OP LIVESTOCK

[Per hundred pounds at Chicago]

Native beef steers (average)..Fat cows and heifersHogs (bulk of sales)Yearling sheep .Lambs (average).^ -

Weekended

Apr. 10,1926

$9.456.70

12.0510.0012.80

Months of—

March,1926

$9.607.20

12.059.90

13.15

Febru-ary, 1926

$9.656.60

12.3511.6513.50

March,1925

$10.256.65

13.5513.5016.20

Dairy products.The output of dairy products during the

first quarter of 1926 was maintained in avolume approximately 10 to 12 per centhigher than in the corresponding period ayear ago. During the first two monthsdairymen received relatively high prices fortheir product and feed costs were low, com-pared with 1925. March prices of the currentyear/however, were below those of a year ago,and the same disparity was in evidence duringthe first half of April, butter and cheesestocks continuing to be in excess of the usualholdings for this season.

With a seasonal decline that was greaterthan usual, butter prices decreased approx-imately 5 cents a pound during March, reachingthe lowest March level since 1922. A furtherreduction of 3 cents also took place during thefirst half of April. Storage holdings on April 1were 17,390,000 pounds, as compared with10,875,000 pounds a year previous. Thereduction iln stocks during the month ofMarch was only 9,000,000 pounds, as against18,000,000 pounds for the same month in 1925.Strength in foreign butter markets has elimi-nated imports as a material factor, and thecontinued heavy production and slow out-of-storage movement were apparently the domi-nating elements in the price situation.

Receipts of cheese at primary markets inWisconsin from January 1, 1926, through theweek ending April 10 were about 12 per centabove those of the corresponding period in1925. Storage stocks in the United Statestotaled 38,026,000 pounds on April 1, ascompared with 27,716,000 on the same datea year ago. The reduction in stocks for thecurrent March were only 4,561,000 pounds, ascompared with a reduction of 6,931,000 duringthe same month in 1925. Prices declinedapproximately 2 cents a pound during March,and quotations were an additional cent lowerin the week ending April 17.


318 FEDERAL RESERVE BULLETIN" MAY, 1926

MINING

Mining output increased in March and wasgreater than in that month of any recent year.Large production of anthracite, copper, zinc,and lead offset a reduction in the output ofbituminous coal. Daily average crude petro-leum production was larger than in any monthsince December. Anthracite mines were incomplete operation during March for the firsttime since last August. Weekly figures for Aprilindicate further seasonal declines in the pro-duction of bituminous coal at a level higherthan in 1924 and 1925, but below that of 1923.Anthracite output, however, in the week ofApril 17 was larger than in any week since theresumption of operations in February.

Coal and coke.

The advent of warmer weather, togetherwith the resumption of full-time operations inthe anthracite fields, have reacted on themarket for bituminous coal and coke, and bothprices and production have shown the usualspring recession. During the latter part ofMarch and the first half of April, however,the seasonal recession was more marked inprices than in output. On April 12 the CoalAge Index of spot prices for bituminous coalhad declined to $1.91, a new postwar low.Production of bituminous during March was46,137,000 net tons, the lowest since lastAugust just before the cessation in anthracite,but 23 per cent above March, 1925, and 12per cent above March, 1924. During the firstpart of April output continued to recede, butremained well above the levels of the two pre-ceding years. During the week ending April10 average production per working day was1,571,000 net tons, as compared with 1,782,000four weeks earlier and 1,307,000 net tons duringthe corresponding week in April, 1925. Total1926 output of bituminous to April 10 amount-ed to 159,747,000 net tons, the largest for thecorresponding periods of any year since thewar.

Production of anthracite was high duringMarch, total output of 8,790,000 net tonsbeing the largest monthly production sinceAugust, 1925, the month preceding the strike,and above any preceding month since March,1923. With demand active, the usual Aprilreduction in price did not take place this year.

Total production of coke amounted to4,935,000 short tons during March, exceptfor December and January, when the demandfor anthracite substitutes was at a peak,

the highest since May, 1923. Output of by-product was 3,777,000 tons, the second higheston record, in contrast to production of beehivewhich totaled 1,158,000 tons, the lowest sinceOctober, 1925. During the first part ofApril, output of beehive continued to decline,production for the week ending April 10 being231,000 net tons, as compared with 262,000tons four weeks earlier and 212,000 tons duringthe corresponding week in April, 1925. Quo-tations for coke receded further during theperiod, Connellsville coke being quoted at$3 on April 13, as compared with $3.25 onMarch 16 and $3.10 on April 14, 1925.

Petroleum.In the first two months of 1926 production

of crude petroleum declined from the levelsof the autumn months, but near the end ofFebruary the output began to increase, andin nearly every week in March and. the firstpart of April the daily average output increased.Total production, however, for the first threemonths was about the same as last year—January and February were larger but Marchwas less. Stocks of petroleum east of Cali-fornia were reduced again in March, and atthe end of the month they were 7 per centsmaller than a year ago. In January, Feb-ruary, and early in March prices of crudepetroleum advanced gradually, but late inMarch and the first three weeks of April theyremained unchanged at $2,048 per barrel, theOil, Paint, and Drug Reporter's average pricefor 10 fields.

Production of petroleum products was lessin February than in January, but the outputof all products except kerosene continuedlarger than a year earlier. Gasoline productioncontinued to exceed all records for the cor-responding months in previous years, andstocks are likewise increasing. These heavystocks, however, are not an unfavorable factorwhen they are considered in relation to con-sumption. The total supply of 1,858,659,000gallons on hand at the end of February wasequal to 75 days7 consumption at the presentrate, which is relatively lower than the sup-ply of 1,618,891,000 gallons a year earlier,which was equal to consumption lor 79 days.Gasoline prices at refineries advanced eachweek from the middle of March until theweek ending April 1.0, when they were at a levelhigher than for any previous week this year.Service-station mi6es advanced in the firstand second weeikk of April, biit for th6 weekending April 17 they remained unchanged at


MAY, 1926 FEDERAL KESEEVE 319

22.32 cents a gallon, according to the Oil,Paint, and Drug Reporter's average price forservice stations in 10 sections of the UnitedStates.Nonferrous metals.

Production of nonferrous metals continuedhigh during March, while prices showed atendency toward somewhat lower levels. Dur-ing the latter half of March and the first weekof April quotations for refined electrolyticcopper delivered in New York receded from14j^ to 13% cents, but subsequently reactedto 14 cents. Production of copper in theUnited States during March reached 150,-900,000 pounds, about the same daily rate asin February but, due to the longer month, anew monthly high. Shipments both on do-mestic account and for export were high duringthe month, and stocks showed a materialdecline at the end. March output of bothlead and zinc in the United States was about6 per cent in excess of March, 1925, and inboth cases the second highest total reached.Shipments of slab zinc from refineries, whichreached a new high during the month, werein about the same volume as production, withthe result that stocks on hand on March 31remained virtually unchanged at 20,561 tons.Prices for both lead and zinc continued todecline during the latter part of March andthe first half of April to the lowest levels sinceJuly, 1925, lead being quoted at 8 cents inNew York on April 14 as compared with 8J^cents four weeks earlier, while zinc in St.Louis reacted ivom 7%-7}^ to 1% centsduring the same period.

With continued selling from China and littledemand elsewhere, quotations for bar silverin New York fell from 66 cents on March 17to 64% cents on April 14. This is the lowestsiiice early in 1924 and 8M cents under therecent September high. With the exceptionof January* March deliveries of tin to theUnited States were the largest since March,1925, but stocks in New York showed a declineat the end of the month. Quotations forStraits tin were 64 cents on April 14, incontrast to 66 cents four weeks earlier, thehighest since August, 1919.

MANUFACTURINGOutput of manufactures as a whole in March

was greater than in any previous month. Anew index of manufacturing production, com-piled by the Federal Reserve Board, basedupon daily averages of monthly statistics butotherwise unadjusted for seasonal variations,

stood in March at 112 (1923-25 averageequaling 100), as compared with previousrecords of 111 in February, 110 last October,and 110 in April, 1923. The chart on page 306shows a combination of this index with asimilarly computed index of mineral produc-tion. Complete statistics and a descriptionof these indexes will appear in a forthcomingissue of the BULLETIN. The index of manu-facturing previously published and shown inthis issue on page 336 equaled the high recordattained last October. Production of steelingots, and newsprint and the mill consump-tion of cotton was larger than in any previousmonth, and automobile output was exceededonly during last October* Other increaseswere noted in the production of pig iron,lumber, cement, and flour, and in the numberof animals slaughtered. Prices of many basicmanufactured products have been weak inthe past two months and several declines haveoccurred.

Food products.The output of flour for the first quarter of

1926 was approximately 10 per cent under theproduction for that period a year ago. Marchproduction figures, however, show an increaseover the preceding .month, and the productionfor both March and the first half of April inpractically all the important milling centers,with the exception of those on the Pacificcoast, was maintained at a higher level thanfor the corresponding period last year. Activ-ity in the Pacific coast mills, which has been ata low ebb during 1926, showed some improve-ment during the last week in March and firsthalf of April.

The flour trade has been marked by a dulland listless market, with buyers purchasingonly for current needs. The export trade in1926, which has been at the lowest level inyears, is still inactive, although some Europeanbuying was reported in the first week of April,the first active inquiry from this source insome time.

Stocks of meat on hand April 1 were belowthose of a year ago and below those of the five-year average. Moldings of pork products wereparticularly low, lard stocks totaling 93,067,000pounds, as compared with 150,182,000 poundson April 1, 1925. Exports of meat productsduring the first quarter were below those ofthe same period last year, with the exceptionof lard, which shows a slight increase. Forthe month of Marqh, stocks of beef, lamb, andmiscellaneous meats declined, while holdings ofpork and lard increased. The Chicago Fed-


320 FEDERAL RESERVE BULLETIN MAY, 1926

era! Reserve Bank reports that the total valueof March sales billed to domestic and foreigncustomers by 37 meat-packing companies inthe United States were 1.1 per cent below Feb-ruary totals and 1.6 per cent larger than forMarch of 1925.

The current season's sugar production is esti-mated by the Department of Agriculture at4.3 per cent larger than the 26,496,000 shorttons actually harvested in 1924-25. Most ofthe increase occurred in the cane-sugar pro-ducing countries, according to their statement.The current crop, which is the largest on record,has been accompanied by a very low level ofprices. The extreme low was reached inMarch, and since the announced intention ofthe Cuban Government to curtail productionthere has been a gain, refiners quoting the priceat 5.25 to 5,60 cents, less 2 per cent for cash, onApril 16. Meltings of 497,912 long tons dur-ing March were greater than the precedingmonth, but less than March of last year.Stocks at the end of the month were alsolarger, amounting to 290,061 long tons onMarch 31, as compared with 178,803 at theend of the previous month.

Textiles.

In the textile industries manufacturingactivity was fairly well sustained during March,according to statistics of raw material con-sumption, active machines, and employmentand pay rolls, although prices were decliningand buying was limited in volume, Evidentlyproduction was maintained to supply orderspreviously received as well as purchases forimmediate delivery. Reports for April indicatecontinued slackness in demand and somecurtailment of operations, together with furtherprice reductions.

Cotton consumption in March was thelargest for any month on record, and thenumber of active spindle hours was greaterthan for any month since early 1923. Con-sumption and active spindle hours were greaterthan in 1924 and 1925, both in the NewEngland and in the Southern States, but onlythe southern mills showed increases as com-pared with the spring months of 1923. Pricesof cotton goods and yarns during March andApril slowly continued the decline which hasbeen in process almost without interruptionsince October, and reached the lowest levelssince the early part of 1922. Finishers ofcotton fabrics reported larger production,orders, and shipments in March than in anymonth since 1923.

Activity of woolen spindles increased inMarch as compared with February, but dailyaverage consumption of raw wool, the per-centage of active loom and worsted spindlehours to total hours, and factory employmentand pay rolls indicated lessened productionduring March in the woolen and worstedindustry. Buying of both raw wool and ofwoolen products continued in small volume andprices declined further. The Fairchild indexesof prices of raw wool, of tops, and of worstedyarns were at the lowest levels since 1922.The indexes of woolen and worsted goods—all-year numbers—declined in January, buthave since remained unchanged. The Fair-child raw wool survey indicates a clip for 1926of 260,791,000 pounds, as compared with theDepartment of Agriculture's estimate for 1925of 254,260,000 pounds. This survey alsoindicates that a much smaller proportion of thedomestic clip had been contracted for onFebruary 15 this year than on the same datelast year. Imports of raw wool in Marchtotaled 48,000,000 pounds, the largest for anymonth since April, 1923. Sales of men'sclothing by wholesalers in the New YorkFederal reserve district were seasonally largerin March than in February and in about thesame volume as a year ago. Stocks at the endof the month, however, were 14 per centgreater than on the same date last year. Salesof women's clothing, although much larger thanin February, were considerably smaller than inMarch of last year.

Volume of buying in the silk industry, whichearly in the year receded from the greatactivity of last fall, continued relatively limitedduring March and April. Prices were weakand manufacturing operations were reduced.Takings of raw silk by American mills in Marchwere smaller than in any month since last May.They apparently exceeded imports, however,which were tne smallest in a year, andstocks were considerably reduced. The rawsilk market has been weak and quotationsfell in April below the lowest point of 1925.The Fairchild index of silk goods prices fellfrom 132.05 on March 1 to 127.41 on April 1This average, however, still exceeds that ofApril 1,1925—123.61.

Demand for women's full-fashioned silkhosiery has continued fairly large, but, in linewith declines in raw material costs, severalmanufacturers have reduced quotations onsilk hosiery effective July 1. PreliminaryMarch statistics for the Philadelphia andAtlanta Federal reserve districts indicate in-creases in production and shipments as com-


MAY, 1926 FEDEEAL EESEEVE BUIiLETIN 321

pared with February. Unfilled orders forwomen's full-fashioned hosiery increased con-siderably, but for other lines unfilled orderswere reduced by an excess of shipments overnew orders. The underwear market wasseasonally dull during early April, with ship-ments of light-weight lines waiting for warmerweather and buying of winter wear inactive.February production for 150 firms reporting tothe Bureau of the Census was well sustained,but unfilled orders, which showed a steady in-crease for several months until January, andlikewise new orders and shipments, declined.Iron and steel.

Activity in the iron and steel industry wassustained at high levels during March. Theproduction of steel ingots in that month totaled

MILLIONS OF TONS

1917 !9T8 1919 1920 1921 1922 1923 1924 1925 1926

Unfilled orders of the United States Steel Corporation andproduction of steel ingots.

more than in any month on record and theoutput of pig iron was the largest since March,1925. Ten more blast furnaces were in opera-tion, according to Iron Age, on April 1 than onMarch 1, As compared with April 1, 1925,furnaces in blast this year were fewer in num-ber but larger in capacity. Prices of steel havebeen firm, and the Iron Age composite priceof steel products advanced slightly the lastweek in March. Prices of pig iron and of ironand steel scrap, on the other hand, have de-clined recently, the Iron Age pig-iron index forApril 20 being 20.46, as compared with 21.38a month earlier, and 21.54 two months earlier.Current trade reports indicate some recessionin the volume of buying and curtailment ofmanufacturing operations since April 1.

For several months, in face of reports ofslackened demand for iron and steel products

and a confirmatory decrease in the unfilledorders of the United States Steel Corporation,the volume of steel production has been main-tained at remarkably high levels. The accom-panying chart shows, by months since 1917, themovement of steel-ingot production and of theunfilled orders of the United States Steel Cor-poration. The general level of unfilled ordershas declined gradually during years of sharpup-and-down movements, and since the latterjjart of 1923 has apparently become estab-lished on a considerably lower basis than inpreceding years. During this decline in th©volume of unfilled orders production of steelhas increased. This seems to indicate a shift inthe manner of buying from the custom ofplacing large advance orders to that of pur-chasing for almost immediate delivery, andevidently a large volume of business has beentransacted upon the latter basis.Automobiles.

Production of automobiles in March waslarger than in any month on record, with theexception of last October/ Trade reports indi-cate that sales of cars in March were in recordvolume for that month. They did not, how-ever, according to these unofficial reports,equal production, and stocks were consequently

THOUSANDS OF CARS

5QDTHOUSANDS OF CARS

500

1924

Monthly production in United States and Canada

increased. Dealers reporting to the ChicagoFederal Keserve Bank showed increases in salesof both new and used cars as compared withFebruary and with March, 1925. Stocks,however, were much larger than a year ago,the increases being for distributors 48 per centand for retailers 82 per cent. Stocks wereconsidered rather small a year ago, however,and comparisons with March 31, 1924, whenthey were large, show a decrease in the com-bined stocks of 17 per cent. Weekly statisticsof employment in Detroit factories, largely


322 FEBEBAIi RESERVE BULLETIN" MAY, 1926

automobile producers, declined continuouslyfrom March 9 to April 20, but continuedlarger than at any time prior to last October.Exports of automobiles in March totaled33,921 cars, tHe largest for any month on record.

Production of pneumatic rubber tires in-creased in March and was larger than in anymonth since August. The output of innertubes increased to a less extent. Shipmentscontinued much smaller than production, andstocks were further enlarged to new highrecords. Crude rubber prices, after an advanceearly in March, declined in the latter part ofMarch and April, falling below 50 cents apound for the first time in nearly a year. Im-ports of rubber equaled 94,421,359 pounds inMarch, as compared with 94,985,456 poundsin January, the largest for any month onrecord.

Lumber.In comparison with production in the corre-

sponding month of last year, lumber produc-tion this year in March was in somewhatsmaller volume and lumber shipments in some-what larger volume. In March, as in Februaryand January, according to compilations of theNational Lumber Manufacturers Association,shipments of softwoods exceeded production,and in each of these months production ofhardwoods exceeded shipments. Consistentlywith these figures unsold stocks of softwoodsat mills as reported to this association tendedto accumulate during the first quarter of 1926,and stocks of hardwoods to fall off. Ship-ments of Douglas fir in March, as reported bymills to the West Coast Lumbermen's Associa-tion, were in nearly the same volume this yearas last, and somewhat in excess of production,while shipments of southern pine, as reportedfor March by mills to the Southern PineAssociation, were in smaller volume this yearthan last, and were below production this yearas in March of 1925.

Hides, leather, and shoes.

Hide and leather markets during March andmost of April continued inactive, with volumeof trading limited. A little activity was notedin packer-hide markets during the third weekof April, and some prices rose slightly. Pricesof hides, however, had fallen irregularly sincel&st August to the lowest point since the middleof 1924. Leather prices have remained com-paratively steady since early last fall. Produc-tion of sole leather increased in March and wasthe largest since October; stocks in process

were also increased, whereas tanners' finishedstocks were further reduced to a new low level.February figures, the latest available, for upperleather show decreases in production as com-pared with January and with last year, exceptin the case of goat and kid leather; stocks mprocess increased during the month and totalfinished stocks for cattle and sheep leatherdecreased and for goat and kid and calf leatherincreased as compared with January 31, andwith a year previous.

Boot and shoe production showed a seasonalincrease in March, and preliminary figuresindicate a volume of output somewhat smallerthan in March, 1925, but larger than in thesame month of 1924. For the first quarteroutput was somewhat less than in the firstquarter of any year since 1922. Sales of shoesby wholesale firms, on the other hand, werelarger in March and in the first quarter than inthe corresponding periods of either 1924 or1925.

BUILDING

Building and engineering contracts awardedin March in 11 Federal reserve districts com-prising 37 States east of the Rocky Mountainsand covering 91 per cent of construction activi-ties in the country as a whole, according tocompilations by the F. W. Dodge Corporation,represented an aggregate cost value of$598,000,000, the excess over March awardslast year amounting to $107,000,000, or 22 percent. Of this increase $71,000,000 was con-tributed by the New York district. Tl̂ e netincrease of $36,000,000 shown for the 10 remain-ing districts covered small decreases over theyear in the Philadelphia, Cleveland, Richmond,and Kansas City districts, substantial increasesin the Atlanta and Dallas districts, and rela-tively small increases in the Boston, Chicago,St. Louis, and Minneapolis districts. Generallylarge increases over February, partly seasonaland partly accounted for by the larger numberof working days in March, are shown for theseveral districts, excepting the Atlanta district,in which the aggregate value of contractsawarded in March ($61,081,000) was somewhatbelow that for February ($63,559,000), althoughlargely in excess of the valuation of awards inMarch of last year ($34,274,000)

Residential contracts awarded in March inthe 11 districts represented an aggregate valueof $263,000,000, the increase over March oflast year amounting to 15.7 per cent, and overFebruary of this year to 46.9 per cent. OverMarch of last year the net increase for the 11


MAY, 1926 FEDERAL KESEBVE BUHLETIN 323

districts, amounting to $35,715,000, coveredan increase for the New York district of$36,902,000 and a net decrease of $1,187,000for the 10 remaining districts. In seven ofthese districts awards of residential contractsrepresented a smaller aggregate constructionvalue this year than last, increases being shownfor the Atlanta, Minneapolis, and v Dallasdistricts.

It may be noted that awards in March ofthis jrear represented on the average a con-struction value per award considerably abovethe corresponding average value for March oflast year, the average being $38,225 this yearas compared with $31,981 last year for allclasses of contracts combined, and for residen-tial contracts $22,433 as compared with $19,369.

The valuation of "contemplated projects"reported in March to the F. W. Dodge Corpo-ration aggregated $1,029,000,000, being largelyin excess of the corresponding figure ($789,-000,000) for March of last year.

Estimated cost valuation represented bypermits issued in 168 cities in March exceededthe valuation of permits issued in Februaryby 59.7 per cent, and exceeded the valuationof permits issued by these same cities lastyear in March by 4.5 per cent. Net increasesover the year are shown for the cities of sevenFederal reserve districts and net decreases forthe cities of five districts. March reports ofpermit valuations to the Dodge Corporationfrom the building departments of 207 citiesshow over-the-year gams for 86 of these cities,and losses for 121 cities, the aggregate valueof permits issued by this group oi cities as awhole being 8 per cent greater this year thanlast.

The New York Federal Reserve Bank'sindex for cost of building shifted from 196 inFebruary to 195 in March, covering a decreasein both the building materials index (from 177to 176) and in the index for wage cost of laborin construction industries (from 224 to 223).In March the Bureau of Labor Statisticswholesale price index for building materialsdeclined from 177.1 in February to 175.5, thecorresponding figure for March of last yearbeing 179.8.

TRANSPORTATIONCar loadings in March exceeded March

loadings for any earlier year of the seven-yearperiod covered by the Federal Reserve Board'scompilations. Over last year's March load-ings the excess amounted to 331,000 cars, or8 per cent in a total of 4,341,000 cars loaded,and over the previous high record for themonth—that for March, 1923—the excess

amounted to 219,000 cars, or 5 per cent. Ona 1919 base as 100, the board's seasonallyadjusted index for totaV car loadings remainedpractically unchanged at the level of the pre-ceding month, shifting only from 126.9 inFebruary to 126.4 in March. These figuresindicate that with allowance made for seasonalvariation freight distribution was continuingduring these months on a level above that ofany earlier month excepting December andApril of last year and May of 1923. ^In theopening weeks of April, loadings this yearcontinued to run above 1925 and for the yearto April 17 exceeded last year's loadings by anarrow margin of some 280,000 cars, or 2per cent.

Nearly two-thirds (64 per cent) of totalloadings in March represented miscellaneousand less-than-carload shipments, covering prin-cipally the distribution of manufactured prod-ucts. Although the proportion fer this classof freight was somewhat below the corre-sponding proportion (65.6 per cent) for Marchof 1925 it was above that for March of anyearlier year, the proportion for these earlieryears being 62.7 per cent for 1924, 60.6 percent for 1923, 59.7 per cent for 1922, 63.5 percent for 1921, and 60 per cent for 1920, andin March of this year more cars were loadedwith miscellaneous freight than were loadedwith such freight in the corresponding monthof any earlier year of the period. Marchloadings of grain and grain products this year,of coal, of coke, and of livestock exceededloadings in 1925 and, excepting livestock, ranabove 1924, loadings of ore and of forestproducts being in somewhat smaller volumethis year than in March of either 1925 or 1924.Geographically the increase over 1925 has beenwidely distributed, each of the seven trans-portation districts showing an excess over 1925for March loadings, and, with the exception ofthe northwestern district, an excess, generallyby a narrow margin, for the first quarter ofthe year.

In March the roads maintained an averagesurplus of 215,000 cars (including 87,000 boxcars and 82,000 coalc ars), the surplus increas-ing in the first half of April to 284,000 cars.Of freight cars and of locomotives, the propor-tion in serviceable condition on April 1 (93per cent of cars and 83.7 per cent of locomo-tives), was above the proportion on this datea year ago (91.8 and 81.9 j>er cent) and abovethe five-year average for this date as computedby the Bureau of Railway Economics.

Total operating revenues of Class I railwaysin February exceeded revenues in February of


324 FEDERAL, EESEBVE BUI^LETIN" MAY, 1926

last year by a margin of $5,018,751, or 1.1 percent, and operating expenses for the monthwere greater this year than last by nearly thesame amount, $4,904,567 or 1.4 per cent, givingan inconsiderable excess for net operatingrevenue for the month, this year over last,of only $114,184, or 0.1 per cent in a totalnet revenue this year of $99,613,841. Theoperating ratio or percentage of expenses torevenues was-78.35 per cent in Feruary of thisyear, as compared with 78.14 per cent in Feb-ruary of 1925. For the two months endedFebruary 28 the rate of return, as computedby the Bureau of Railway Economics, on thebook investment of carriers was equivalent to4.60 per cent on an annual basis, the corres-ponding figure for 1925 being 4.77 per cent.Carriers in the eastern district were earning inthis period at a lower rate this year than last(4.95 as compared with 5.46 per cent), carriersin the southern district at a somewhat higherrate this year (5.97 as compared with 5.75 percent), and carriers in the western district atnearly the same rate in both years (3.72 ascompared with 3.70 per cent).

TRADEWholesale trade.

Sales of wholesale firms were in about thesame volume in the first quarter of 1926 as inthe corresponding period of last year, accord-ing to reports from all sections of the countryreceived by the Federal reserve system. Salesof meat, shoes, and drugs were slightly larger,while those of groceries, dry goods, and hard-ware showed small declines. Stocks of allleading lines of merchandise, except groceriesand drugs, carried by the reporting firmsaveraged smaller during the quarter than in1925,

For the month of March total sales innearly all lines were seasonally larger thanfor February. Trade was stimulated by theearly Easter season, but in many sections ofthe country, weather conditions were unfavor-able to the spring sales of some lines, espe-cially dry goods. Grocery and drug saleswere larger in all Federal reserve districtsfrom which reports were received and sales ofshoes and hardware were also generally larger.

When compared with March of last yearsales of groceries, meats, shoes, and drugs werelarger, but sales of dry goods and hardwarewere smaller. The most substantial improve-ment was in the sales of shoes, which werelarger in all Federal reserve districts except theSt. Louis and San Francisco districts, but thelargest increases were in the Richmond andAtlanta districts.

Value of stocks of principal lines of mer-chandise carried by wholesale dealers, exceptgroceries and shoes, increased slightly in Marchand were larger at the end of the month thanat the end of February. Compared withMarch a year ago inventories were generallysmaller, except for groceries and drugs. Re-ports received from firms in several districtsindicate that accounts receivable outstandingat wholesale firms at the end of March werelarger for all lines than at the end of Februaryand were somewhat larger than a year earlier.

Retail trade.Retail trade in the first quarter of 1926 was

larger than in the first three months of 1925,Department-store sales were 5 per cent largerthan in the first quarter of 1925, and increasesoccurred in-all.Federal reserve districts exceptthe Minneapolis district. Sales of mail-orderhouses were 7 per cent larger, and buying atall reporting chain stores also exceeded that oflast year. Inventories at department storeswere slightly larger than in the first quarter of1925, but a relatively larger increase in salesresulted in a slightly higher rate of stock turn-over at these stores than in the first threemonths of 1925.

For the month of March sales of departmentstores reflected the seasonal expansion in springtrade, but the increase was not as large as thatwhich usually occurs between February andMarch. Compared with March of last year,sales of department stores were about 7 per centlarger and those of mail-order houses increased9 per cent. Increases in sales in March thisyear as compared with the corresponding monthin 1925 were due in part to the earlier Eastertrading season and to the one more businessday in March this year. Weather conditions,on the other hand, were generally unfavorablefor sales of certain seasonal merchandise. Theincrease in department-store sales over March,1925, was general for all sections of the countryexcept the Minneapolis and Kansas City dis-tricts, where they were about the same as ayear ago.

Stocks of department stores increased inMarch in response to the growth in sales andaveraged at the end of the month 2 per centlarger than in March, 1925. Stocks werelarger than in 1925 in eight Federal reservedistricts and smaller in four. Larger stocks inthe first three months this year than in 1925were accompanied by a relatively greater in-crease in sales, and the average rate at whichstocks were turned over was higher than inthe corresponding period a year ago. Stocks


MAY, 1926 FEDERAL. RESERVE BULLETIN 325

were sold and replenished at a faster rate thanin the previous year in all Federal reservedistricts except in the New York and Minne-apolis districts, where the rate of turnover wasslightly slower.

EMPLOYMENTFactory employment continued in March at

practically the same level as in February,while pay rolls increased slightly. The FederalReserve Board's index of factory pay rolls,based upon figures of the Bureau of LaborStatistics, reached the highest point sinceMarch, 1924. Among the various industrieschanges in the volume of employment weresmall, the largest increases occurring in theglass, women's clothing, automobile, and bak-ing industries, with the greatest decreases inslaughtering and meat packing, confectionery,silk, and woolen and worsted goods. Pay-rollincreases were greatest in cigars and cigarettes,book and job printing, ice cream, and certainbuilding materials industries. As comparedwith March, 1925, employment showed anincrease of about 1 per cent and pay rolls of 2.6per cent, reflecting increases in the automobile,machinery, printing, glass, and nonferrousmetals industries, which more than offset de-clines in textiles, lumber, food products, andboots and shoes.

By sections of the country, pay rolls increasedin February in six of the nine major geographicdivisions, the exceptions being the East SouthCentral, the West South Central, and theMountain States. Employment likewise de-creased in these three sections and also in theMiddle Atlantic and West North CentralStates. As compared with a year ago, only theWest South Central and Mountain sectionsreported smaller pay rolls, while the greatestincreases were in the East North Central andSouth Atlantic divisions. The only wagechanges of importance reported for Marchwere increases averaging 2.8 per cent in a fewlarge steam railroad repair shops.

PRICES

Prices of commodities at wholesale declinedin the United States about 2 per cent fromFebruary to March, according to the index ofthe Bureau of Labor Statistics. Declines weregenerally distributed among all the majorgroups of commodities covered by the index(except house furnishings), with the largest re-duction shown for farm products, which de-clined as a group by about 4 per cent, chieflyin consequence of lower quotations for grains,livestock, cotton, and wool.

94033—26—4

The declines of March carried the generalindex more than 2 per cent below the lowestfigure of last year, reached in May. In com-parison with that month the principal pricedeclines were in farm products, cloths andclothing, and in house furnishings. Fuel pricesincreased during the year, while the other prin-cipal groups show only minor net changes.

Since last August the index has graduallydeclined with but little interruption, the netdecline over the seven months amounting toabout 5.5 per cent. The greater part of thisdecline has been due to wide movements of asmall number of commodities, mostly in thefarm products group and the allied groups rep-resenting food and textiles. Since last Augustfarm-products have declined about 12 per centand cloth and clothing about 5 per cent. Fuelsand building materials, however, are higher inprice than last August, metals are about thesame, chemicals and house furnishings areslightly lower, while miscellaneous goods areconsiderably lower, largely because of reducedprices on rubber.

In April wholesale prices were at about thesame level as in March, or slightly lower.Farm products and foods advanced, with some-what high prices for wheat, cattle, hogs, pota-toes, and sugar, while cloths and clothing,metals, and miscellaneous commodities de-clined. Pig iron, silk, and rubber were lower.

COMMERCIAL FAILURES AND BANK SUSPEN-SIONS

COMMERCIAL FAILURES

During the month of March 1,984 com-mercial failures, involving liabilities of $30,-622,547, were reported by E. G. Dun & Go.The number was about 10 per cent larger thanin the shorter month preceding, in which only1,801 insolvencies were reported, and waslarger also than for the month of March in anyyear since 1922. In contrast with the in-creased number of failures in March total in-debtedness in default was about 10 per centless than in either February this year orMarch last year—in fact was the lowest, forMarch, since that month in 1920. Thenumber of failures in March was larger thisyear than last for all three groups of enter-prise into which the statistics are classified—manufacturers, traders, and agents, brokers,etc.—while liabilities were larger for only thetrading group. Notwithstanding a consider-able increase in number of insolvent manu-facturing enterprises, total liabilities involvedin this class of failure showed a decrease of 25



per cent, owing largely to smaller liabilities offailed manufacturers of machinery and tools,and of clothing and milinery. Failures duringMarch, 1926, are shown in the following table,by class of enterprise:

COMMERCIAL FAILURES DURING MARCH

Class of enterprise

All classes

ManufacturingTradingAgents, brokers, etc.

Number

1926 1925

1,984

4691,424

91

1,859

4291,345

85

Liabilities

1926

$30,622,547

9,861,82118, 622,7932,137,933

1925

$34,004,731

13,374,58417, 594,9943,035,153

The number of failures was larger in Marchthis year than last in all except the Richmond,Atlanta^ Chicago, St. Louis, and Kansas Citydistricts, and was the largest on record in theBoston district. Total liabilities were largerthis year than last in only the Philadelphia,Cleveland, St. Louis, Dallas, and San Franciscodistricts. Comparative data, by districts, forthe month of March are presented in the fol-lowing table:

COMMERCIAL^ AILTJKES DURING MARCH, BY FEDERALRESERVE DISTRICTS

Federal reserve district

Tota l - . .

BostonNew YorkPhiladelphia..ClevelandEichmondAtlantaChicago...St. LouisMinneapolis-..Kansas C i ty . .DallasSan Francisco.

Number

1926 1925

1,984

24036865

21412479

29878908475

1,859 $30,622,547

19834858

1731271163098682

205

Liabilities

1926

3,249,5656,463,8911,776,9573,738,7232,004,0571,127,9534,062,641

926,9701,214,509

809,1912,439,502

1925

$34,004,731

4,203,1606,543,1801,639,3153,132,0ia2,640,2611,802,2276,805,675

531,5151,924,9211,782,243

682,9362,317,288

During the first quarter of the year therewere 6,081 failures, compared with 5,13.1 in thelast quarter of 1925 and 5,969 in the firstquarter of that year. With the exception ofthe first quarter of 1922, when there were7,517 failures, the total this year was largerthan that of the first quarter of any year since1915. In contrast the aggregate liabilities in-volved in failures during the quarter justended, amounting to $108,460,339 and com-paring with $128,481,780 for the same periodlast year, were smaller than in the first quarterof any year since 1920. Comparing the first

quarter of this year and last, the number offailures was larger this year for manufacturingand trading enterprises and w a s smaller foragents and brokers, while liabilities weresmaller this year for all three classes of enter-prises. Commercial failures, by class of enter-prise, are shown in the following table for thefirst quarter of 1925 and 1926:

COMMERCIAL FAILURES DURING THE FIRST QUARTEROF 1925 AND 1926

Class of enterprise

All classes

M aniifacturingTrading _..Agents, brokers, etc

Number

1926 1925

6,081

1,4264,402

253

1,3184,387

264

Liabilities (000omitted)

1926

$108,460

36,77860,45211,230

1925

$128,482

40,61863,31624,548

BANK SUSPENSIONS

During March 51 banks, with total depositsof $10,707,000, were reported to the Federalreserve banks as haying been closed on accountof financial difficulties. Both totals were lowerthan in the shorter month preceding, when 52banks, with deposits of $13,808,000 were re-ported closed, but were somewhat higher thanin March, 1925, during which 43 banks, withdeposits of $10,142,000, were closed. Of thebanks closed in March this year, 5, with de-posits of $607,000, were national banks and 1,with deposits of $187,000, was a member Statebank—a total of 6 member banks, with de-posits of $794,000, as against 10, with depositsof $3,629,000, closed in February.# There were45 nonmember banks, with deposits of $9,913,-000, that suspended in March, compared with42 banks, having deposits of $10,179,000 sus-pending the month before.

The number of reported suspensions waslarger in March than in February only in theKichmond district, where 6 banks closed inMarch as against 2 in February, and in theSt. Louis district, where there were 12 sus-pensions in March (10 of them in the State ofMissouri) compared with 3 in the precedingmonth. Suspensions were most numerous inthe Minneapolis and St. Louis districts, and,within these districts, the largest numberswere in the States of Missouri, South Dakota,and Minnesota. Four banks in the Minnea-polis district and one bank each in the Rich-mond, Chicago, and St. Louis districts, whichhad previously been closed, were reported to


M A Y , 1926 EEDEBAL RESERVE BULLETIN 327

have resumed operations during the month.The number and deposits of banks closed dur-ing March, 1926, are shown in the followingtable, by class of bank; the figures for closedbanks represent so far as can be determinedbanks which have been closed to the publicby order of supervisory authorities, or by thedirectors'of the bank, on account of financialdifficulties, and it is not known how many ofthe institutions thus reported may ultimatelyprove to be solvent:

BANKS CLOSED DTJKING MARCH, 1926

Federal reservedistrict Num-

ber

All districts

Boston..New YorkPhiladelphia-ClevelandRichmondAtlantaChicago.-.-St. LouisMinneapolis—.Kansas City. . .Dal las - - . - .—.San Francisco-.

All banks

51 $10,707,000

Total

632,000100,000757,000

3,113,0004,908,0001,066,000

131,000

Member *

Num-ber

Totaldeposits

$794,000

375,000

200,000219,000

Nonmember

Num-ber

45 $9,913,000

Totaldeposits

632,000100,000382,000

3,113,0004,708,000847,000131,000

i Comprises 5 national banks with deposits of $607,000 and 1 Statemember bank with deposits of $187,000.

a Figures represent deposits for the latest available date prior to thesuspension, and are subject to revision when information for the date ofsuspension becomes available.

FOREIGN TRADE

Total imports and exports of merchandiseand the merchandise trade balance of theUnited States by months in 1925 and 1926,also the trade balance, including imports andexports of gold and silver, for the three monthsended March, 1925 and 1926, are shown inthe tables following:

MEECHANDISE TRADE BALANCE OP THE UNITEDSTATES


Month

1925Year

JanuaryFebruary ._March -AprilMay -June .JulyAugustSeptemberOctober... __November. . . . .December

1926JanuaryFebruaryMarch

Imports

4,226,590346,165333,387385,379346,091327,519325,216325,648340,086349,954374,074376,431396,640

416,753388,503443,098

Exports

4,909,846446,443370,676453,652398,255370,045323,348339,660379,823420,368490,567447,804468,305

397,196352, 917374,420

Excess ofimports

1,868

19,55735,58668,678

Excess ofexports

683,256100,27837,28968,27352,16443,426

14,01239,73770,414

116,49371,37371,665

TRADE BALANCE OF THE UNITED STATES FOR THREEMONTHS ENDED MARCH, 1925 AND 1926


1925Imports.Exports

Net imports (—) or ex-ports (+)__ ,_

1926ImportsExports __

Net imports (—) or ex-ports (+)

Total

1,1,446; 136

+346,298

1,356,6991,161,548

-195,151

Mer-chandise

1,064,9311,270,771

+205,840

1,248,3541,124,537

-123,817

Gold

15,978149,230

+133,252

88, ISO11,163

-77,017

Silver

18,92926,135

+7,206

20,16525/848

+5,1

FOREIGN EXCHANGE

In the exchange and bullion markets an im-portant development during the month hasbeen the decline in the price of silver. Afterdeclining since last September, when the NewYork price averaged 71.885 cents per fineounce, the highest average recorded sinceNovember, 1920, the price of silver droppedto 63 cents on April 22 and averaged 64.76cents for the month of April, the lowest averagesince April, 1924. Two chief factors have con-tributed to this price decline—one is the liftingof the Japanese embargo on the export of silver,which has released large supplies to the worldmarket, and the other is the fact that Chinesemerchants and exchange operators, who hadimported $11,859,000 in silver from the UnitedStates during the first three months of 1926and were oversupplied with silver, have beenselling silver currency and buying Japaneseyen. Although in recent months India hasbeen a buyer rather than a seller of silver,Indian purchases have been made at very lowprices and have thus afforded the market littlesupport.

Far Eastern exchanges have moved closelywith the changes in the price of silver. TheShanghai tael, which last September averaged78.47 cents per tael, the highest average quotedsince June, 1922, declined to 69.35 cents onApril 22, the lowest rate quoted since April)1924. The Chinese Mexican dollar and theHongkong dollar exchanges have also movedwith the price of silver. The Indian rupeesince last September has shown a similar corre-spondence in movement, although other influ-ences, particularly the selling of council billsby the Government, have greatly narrowed thefluctuations of the rupee. The Japanese yen,on the other hand, has advanced in almostdirect proportion to the decline in the price ofsilver. , The yen rose from an average of 40.75



cents per yen in September last to 47.43 centson April 28, the highest rate quoted sinceDecember, 1923. Gold shipments from Japanto the United States were resumed in Octoberof last year with an import into this country of$4,000,000, the first considerable import ofgold from Japan since January, 1921. Thiswas followed by further shipments of $3,000,000in November, another of $4,000,000 in De-cember, and another of $4,000,000 in February,making a total of $15,000,000 in gold sent tothis country by Japan since last September.It is reported that at least some of this gold isto be used in the support of the exchange.

Sterling maintained a level of about $4.8625from March 23 to April 10, declined to $4.8593on the 29th, recovered to $4.8638 on the 24th,and averaged $4.8622 in April, as comparedwith $4.8608 in March. Both French andBelgian francs declined to new low records.The French franc declined from 3.73 cents onMarch 5 to 3.29 cents on April 28. While theFrench franc has shown an almost unbrokendownward tendency, the Belgian franc hasfluctuated over a wide range. It rose fromthe March low figure of 3.69 cents on March30 to 3.87 cents on April 10, partly in responseto the arrangement of short-term creditsabroad to protect the exchange pending thesettlement of negotiations for long-termcredits; then declined to 3.38 cents on April30. Italian lire were unchanged at 4.02 centsper lira. The Netherlands florin remainedsteady at about 40.10 cents until the 23d, afterwhich an upward movement carried it to 40.21cents on the 29th. Swedish kronor declinedfrom 26.82 cents on April 1 to 26.77 centson April 20, while Swiss francs rose from19.26 cents on April 1 to 19.33 cents on April27. Danish kroner since March 15 havefluctuated between 26.16 and 26.23 cents.Norwegian kroner maintained a higher levelduring April than during March and showedsmaller fluctuations than during the period fromthe middle of February to the end of March.The Polish zloty declined almost steadily from13.16 cents at the beginning of March to10.30 cents per zloty on April 30. The Greekdrachma and the Rumanian leu also showedconsiderable recessions during the past threemonths.

In Czechoslovakia, the new National Bankopened on April 1, succeeding to the BankingOffice of the Ministry of Finance, and assumedthe duty of keeping the exchange value of the

Czechoslovak crown between the limits ofof $2.95 and $3.03 in United States currencyfor 100 crowns. The exchange has stood atabout 2.96 cents per crown, or $2.96 for 100crowns, since the beginning of 1925.

The Canadian dollar, which had declinedvery slightly since last November, when itstood a little above parity, rose from the Marchlow figure of $0.9941 to $1.1611 on April 24,which is the highest rate quoted since thearmistice, although Canada has not yet formallyreturned to the gold standard.

The Argentine peso, after a sharp declinefrom 94.10 cents on February 1 to 88.07 centsper peso on March 16, recovered to 89.91cents by the end of the month, and advancedduring April from 89.96 on the 2d to 92.16cents on the 22d. Brazilian milreis declinedfrom 14.74 cents to 14.08 cents during Marchand continued their downward movement dur-ing the early part of April to 13.73 cents on the13th, but recovered to 14.43 cents on the 30th.Chilean pesos maintained their level slightlybelow the new parity of 12.17 cents. The Uru-guayan peso, which declined slightly after themiddle of February, rose during April from$1.0160 on the 1st to $1.0352, which is 10points above parity.

FOREIGN EXCHANGE RATES

[In cents]

Exchange

Sterling..— _Belgian franc. _. _Danish krone _French francGerman reichsmarkItalian liraNetherlands florinSwedish kronaSwiss franc __Canadian dollarArgentine pesoShanghai tael— *Japanese yen . .

486.65 485.93 486.38 485.73 486.27 486.08

Parvalue

19.3026.8019.3023.8219.3040.2026.8019.30

100.0096.4866.8549.85

April, 1926

Low High

3.3826.163.29

23.804.02

40.0926.7719.26

3.8726.203.50

23.814.02

40.2126.8219.33

99.79100.1689.96 92.1669.35 72.0545.88 47.43

March, 1926

Low High

25.903.43

23.804.00

40.0226.8019.2499.4188.0772.2944.82

4.5426.263.73

23.814. 02

40.1026.8219.2699.8492.5573.0445.94

March,1925,

A ver-t average

4.2326.113.58

23.804.02

40.0726.8119.2599.6390.3372.7145.39

477.635.07

18.075.18

23.804.07

39.9226.9519.2699.8789.7173.3640.97

GOLD MOVEMENTS

UNITED STATES

Total imports and exports of gold duringMarch and February, 1926, by countries oforigin or destination, and comparative figuresfor the three months ended March, 1926 and1925, are shown in the following table:



GOLD IMPORTS INTO AND EXPORTS FROM THE UNITEDSTATES


Country of origin ordestination

IMPOETS

Total

EnglandFranceCanada.Central AmericaMexico.. .__.ChilePeru.Dutch East Indies...JapanPhilippine Islands...Allother

EXPOETS

Total.

GermanyCanadaCentral America.....MexicoBolivia.VenezuelaBritish India.... . .British MalayaHongkong ._Allother.............

Net importsNet exports

1926

March

43,413

2

39,278145531

2,503185178

186405

4,225

34853

20072830030022

5351,355

384

39,188

February

1 25,416

519

9,826209286

9,753668268

4,000177

! 205

3,851

14325

1,014448

800812326566217

21,565

3 months endedMarch—

1926

88,179

1071

66,943465

1,35612,293

975501

4,000547

1,018

11,163

889146

1,2141,741

3001,600

3771,8532,147

896

77,016

1925

15,978

3,06571

8,310400

1,425123390473

4441,277

149,230

45,130178

1,20120

20052,757

2,59447,150

133,252

GREAT BRITAINFollowing is a table showing gold imports

into and exports from Great Britain forMarch and February, 1926, and for threemonths ended March, 1926 and 1925:

GOLD IMPORTS INTO AND EXPORTS FROM GREATBRITAIN

Country of origin ordestination

IMPORTS

Total

BelgiumNetherlandsRussiaRhodesia .Transvaal.. _United StatesWest Africa..Allother... . . . .

EXPOETS

Total

Belgium.- .—..British IndiaFrance—NetherlandsStraits Settlements. . .Switzerland. - - . . .South America . . .Al lother . . .

Net exportsNet imports

1926

March

£1,290,113

179,705

183,371767,77922,020

109,20828,030

2,619,629

9,095691,871267,385190,788290,67013,60010,000

1,329,516

February

£3,453,799

511,515181,922

2,695,7143,801

54,2476,600

1,563,808

522,851163,09778,966

102,660

> 44,000652,234

1,889,991

3 months endedMarch —

1926

£9,268,487

595,736179,705

2,431,800547,767

5,140,49626,233

300,26346,487

6,630,962

17,2701,373,046

480,6411,964,396

726,61127,20084,000

1,957,798

2,637,525

1925

£8,542,048

60,264

553,8333,343,7844,246,069

273,13164,967

11,636,685

97,3456,960,005

58,626468,51034,22640,8232,430

.3,974,720

3,094,637

LOANS OF FEDERAL FARM LOAN SYSTEMIN 1925

The ninth annual report of the Federal FarmLoan Board, recently issued, shows that duringthe year 1925 the combined operations of thethree types of institutions comprised in theFederal farm loan system were somewhat moreextensive than in 1924, but on a smaller scalethan in either 1922 or 1923. The total loansof these institutions outstanding at the end ofthe year were nearly $300,000,000 larger than atthe end of 1924, and exceeded $1,600,000,000, ofwhich nearly two-thirds represented the hold-ings of the Federal land banks, with the balancedivided between the Federal joint-stock landbanks and the Federal intermediate creditbanks in the ratio of about 7 to I.1 For theFederal land banks and the joint-stock landbanks combined, the net farm-mortgage Joansoutstanding amounted to $1,551,244,016, com-parable in amount with $1,871,056,000 of farm-mortgage loans reported for the same date by52 leading life insurance companies.2 Thiscomparison shows that the Federal farm loansystem during the nine years of its existencehas come to be one of the most importantsources of agricultural credit.

Farm loans made during the year by theFederal land banks aggregated $127,000,000, atrates of interest varying'from 5 to 5-J£ per cent.At the beginning of 1925 the rate of 5J^ percent prevailed in all 12 of the districts, butduring the year it was reduced to 5% percentin the Omaha district and to 5 per cent in the St.Paul district, and in certain sections of the St.Louis district. These reductions reflectedprimarily reductions in operating costs, whichresult largely from the granting by these thre^banks of a relatively large volume of mortgageloans in excess of $100,000,000.

Loans closed and rediscounts made by Fed-eral intermediate credit banks during 1925amounted to more than $175,000,000, and thetotal of their credit outstanding increasedabout $18,000,000, or 29 per cent. The interestrate charged on rediscounts was 5 per centthroughout the year, but the rate on directloans to cooperative marketing associationswas 4J^ per cent until early in November and5 per cent thereafter. The increase wasoccasioned by a change in the condition of thedebenture market.

Direct loans and rediscounts of intermediate credit banks amountedto $80,051,835.

2 Representing 93 per cent of the funds of all legal reserve life-insurancecompanies in the United States as reported to and by the association oflife insurance presidents. Figures showing the total volume of allfarm-mortgage loans in 1925 are not available; the latest official estimatethat for 1920, placed this total at $7,857,700,000.

3 The St. Paul district, however, maintained a 5)4 per cent rate, whichwas reduced to 5 per cent on Apr. 1,1926.


330 FEDERAL. RESERVE BULLETIN MAY, 1926

During the year ending November 30, 1925,private sales of 8,870 farms carrying Federalland bank loans were reported, the sale pricesamounting to $59,000,000. The amount loanedon these farms aggregated $26,000,000, againstappraised values of $69,000,000. Thus theloans amounted to 38 per cent of the appraisedvalues and to 44 per cent of the sales prices,appraisements exceeding sales prices by 16 percent. The ratios for each of the last five yearsare given in the following table:

Year ending Nov. 30

1921 . . .1922 •_.19231924_.1925

Per centof loansto ap-

praisedvalue

40414039

/ 38

Per centof loansto saleprices

3237404244

Per centof ap-

praisedvalue to

saleprices

8191

101109116

The table shows that with each successiveyear the farms sold have brought a smallerproportion of the value at which they had beenoriginally appraised and a smaller marginover the amount loaned against these farms.This margin, however, as well as that betweenthe amount loaned and the appraised value,has throughout the period been on the con-servative side of the rule laid down for Federalland bank loans by the Federal farm loan act:"Ncf such loan shall exceed 50 per cent of thevalue of the land mortgaged and 20 per centof the permanent, insured improvements there-on, said value to be ascertained by appraisal."For the joint-stock land banks the farms soldduring tne year that carried loans of thesebanks at the time of sale numbered 1,177,originally appraised at 104 per cent of the saleprices received and carrying loans amountingto 43 per cent of the sale prices.

Purpose of loan

To pay mortgages _To pay other debts ,For purchase of land mortgagedFor purchase of other landTo purchase buildings and improvements.To purchase implements and equipment _.To purchase livestockFor other purposes _.___-.

Total.

Federalland

banks

Per cent6512915125

100

Joint-stockland

banks

Per cent796913110

100

The principal purposes for which the Fed-eral and joint-stock land banks have madeloans are indicated by the accompanyingtable, which covers the period from the timethese banks began operations until the end ofOctober, 1925. It will be noted that morethan three-fourths of all loans have been forthe purpose of enabling borrowers to paymortgages and other debts.

FOREIGN TRADE OF UNITED STATES,FIRST QUARTER OF 1926

Large growth in merchandise imports in thelast half of 1925, accompanied by a decline inmerchandise exports, resulted in a large reduc-tion in the excess of exports over imports, andfor the period as a whole the export balanceaveraged smaller than for the correspondingperiod in any other year since 1922. In thefirst quarter of 1926 imports continued to in-crease over the previous year, but exportsdeclined further, and for the three months,January through March, imports were $124,-000,000 larger than exports. Value of importssince the beginning ol 1926 was 17 per centlarger than in the first quarter of 1925 andexceeded that of the first quarter of 1924 and1923 by 32 per cent and 21 per cent, respec-tively. Purchases abroad of crude materialsto be used in manufacturing, which amount toslightly less than one-half of total imports,accounted for the greater part of the increasein the first three months of 1926, but importsof all other groups of merchandise, exceptmanufactured foodstuffs, were also larger.The net increase in the value of imports in thefirst three months of 1926 was largely accountedfor by the growth in the value of rubber, coffee,and silk imported into the United States.Crude rubber increased 30 per cent in quantityin the first quarter, but average prices at whichit was purchased were considerably higher, andthe value of imports was 205 per cent greaterthan in the correspondingmonths of 1925.Imports of raw SHK increased 9 per cent inquantity and 13.3 per cent in value in the firstquarter, as compared with last year, and thoseof coffee were 27 per cent greater in quantityand 18 per cent larger in value. A more de-tailed analysis of imports by groups and cer-tain selected commodities in the first quartersof 1926 is given in the following table:


MAY, 1926 FEDERAL, RESERVE BULLETIN

VALUE OF MERCHANDISE IMPORTS IN FIRST QUARTEROF 1925 AND 1926

[In thousands of units]

Groups

Crude materials „ -Crude foodstuffs aManufactured foodstuffs _.Semimanufactures _.Finished manufactures . . „ .

Total

Certain commodities:Rubber—

Quantity (pounds) -Value _ . _

Silk-Quantity (pounds)...Value —

Coffee-Quantity^ (pounds) - -

V a l U G" " " " • " " " " • " "

Firstquarter,

1925

$425,035125,024118,946202,655193,271

1,064,931

203,178$66,102

13,912$86,106

324,207$77,361

Firstquarter,

1926

$573,463141,844104,977218,681209,402

1,248,354

263,024$201,851

15,122$97,518

412,281$91,169

Increaseor de-

crease(—)

Per cent34.913.5

-11.87.98.3

17.5

29.5205.4

8.713.3

27.217.2

Total value of merchandise exports declinedin each month of the first quarter of 1926, andfor the entire period the value of exports was12 per cent smaller than in the first quarter of1925. Exports of each of the larger groups ofcommodities, except finished manufacturedproducts, were smaller in the first three monthsof 1926 than in the corresponding months oflast year, but the most substantial declineswere due to smaller foreign takings of crudematerials and crude foodstuffs. Exports ofcotton and wheat declined rapidly, and it waslargely due to these two commodities that thevalue of total exports was smaller for the threemonths ending in March than last year. Cot-ton exports in January, February, and Marchwere smaller than in the corresponding monthsof last year, and for the first quarter endingwith March they were 30 per cent less inquantity, and with lower prices they were 42per cent smaller in value. Exports of wheatwere 70 per cent smaller in quantity and 74 percent less in value than in the first three monthsof 1925. Exports of finished manufactures,among which machinery and vehicles are themost important items, were 15 per cent largerfor the three months7 period than in the firstquarter of 1925. Exports of automobiles, thelargest single item in the group of finishedmanufactures, were 34 per cent larger in quan-tity and 33 per cent larger in value than in thefirst quarter of 1925. More detailed statisticsshowing exports of commodities and of certain

331

selected commodities which constitute thegreater part of exports from the United Statesare riven in the following table:

VALUE] OF MERCHANDISE EXPORTS IN THE FIRSTQUARTER OF 1925 AND 1926

[In thousands of units]

Groups

Crude materialsCrude foodstuffsManufactured foodstuffs_._ .__-SemimanufacturesFinished manufactures

Total

Selected commodities: •Cotton-

Quantity (pounds) _._

Wheat-Quantity (pounds)Value - - -" _

Automobiles—Quantity (number)Value

Firstquarter,

1925

$421,37480,474

155,963171,044422,388

1,251,243

1,345,129$336,567

25,832$48,587

62$66,927

Firstquarter,

1926

$286,27343,613

130,151153,290485,551

1,098,878

936,340$197,008

7,881$12,837

83$89,028

Increase(+) or

decrease(->

Per cent-32.1-45.8-16.6-^-10.4+15.0

-12.2

-30.4-41.5

-69.5-73.6

+33.9+33.0

DEBT FUNDING AGREEMENTS WITHFRANCE AND YUGOSLAVIA

Terms of an agreement lor funding the in-debtedness of France to the United States wereannounced on April 29 by the World WarForeign Debt Commission. As set forth inthe proposed settlement, the amount to befunded covers the principal of obligations heldby the United States for cash advanced toFrance under Liberty bond acts ($2,933,405,-070.15), and of obligations given by France forsurplus war supplies purchased on credit($407,341,145.01). In this, as in other fund-ing settlements effected by the commission,interest is figured at 434 P e r cent to December15, 1922, and at 3 per cent thereafter to June15, 1925, the date of the agreement. Sodetermined, net indebtedness to be fundedamounted on June 15, 1925, after deductionof a small cash adjustment payment ($386,-686.89), to $4,025,000,000. For this aggregateamount bonds are to be issued dated June 15,1925, and maturing serially from year to yearon June 15 over a period of 62 years endingJune 15, 1987. Annuities, on account ofprincipal and interest are to run in amounts asshown in the schedule following.


332 FEDEEAL RESERVE BULLETIN , 1926

SCHEDULE OF ANNUITIES

Year under theagreement

1_23456_.7Q

910 .Hi . __12___.

Annuity

$30,000,000.0030,000,000.0032,500,000.0032,500,000.0035,000,000.0040,000,000.0050,000,000.0060,000,000.0075,000,000.0080,000,000.0090,000,000.00

100,000,000.00

Year under theagreement

131415 -16__. —17 to 61, inclu-• sive_ .__62

Total__

PrincipalInterest

Annuity

$105,000,000.00110,000,000.00115,000,000.00120,000,000.00

125,000,000.00117, 674,104.17

6,847,674,104.17

4,025,000,000.002,822, 674,104.17

In the commission's statement, it is notedthat these annuities provide for payment infull of the principal amount of the debt asfunded, with interest after the first five yearsat 1 per cent for 10 years, at 2 per cent for thesucceeding 10 years, at 2 >£ per cent for thesucceeding 8 years, at 3 per cent for the succeed-ing 7 years, and at 3 XA per cent for the remain-ing 22 years, and that the present value of theproposed annuities on a 434 P^r ^en^ basis is$2,008,122,624, or approximately 50 per centof the debt funded.

An agreement for funding the Yugoslavianindebtedness was announced by the commissionon May 1. With interest computed as in othersettlements at 434 P e r cent to December 15,

1922, and at 3 per cent from that date to June15, 1925, the amount to be funded, after acash adjustment payment, is fixed at $62,850,-000, of which $51,037,886.37 represents princi-pal and $11,812,113.61 interest accrued to thedate of settlement. The annuity runs at$200,000 a year during the first five years andincreases by $25,000 a year during the succeed-ing seven years, payments on account ofprincipal increasing annually thereafter. Be-ginning in the thirteenth year interest is fixedat one-eighth of 1 per cent for 3 years, at one-half of 1 per cent for the succeeding 14 years,at 1 per cent for the succeeding 3 years, at 2per cent for the succeeding 3 years, and at 3}4per cent for the remaining 27 years. On a4 J4 per cent basis the present value of thesepayments is given as $20,236,715 on approxi-mately 32 per cent of the debt funded.

These settlements nearly complete the workof the commission, leaving only $244,000,000unfunded out of a total foreign indebtedness tothe United States of $10,102,000,000. Of theamount unfunded, according to the commis-sion's announcement, $193,000,000 representsRussian indebtedness, $24,000,000 Austrian(which has been extended by Congress for 20years), $15,000,000 Greek, and $12,000,000Armenian.

RULINGS OF THE FEDERAL RESERVE BOARDChange in Federal reserve district boundaries.

The Federal Reserve Board recently issued aformal order directing the transfer of the coun-ties of Bernalillo and Valencia in the State ofNew Mexico from the eleventh Federal reservedistrict to the tenth Federal reserve district,effective April 15, 1926. The only memberbanks situated in the territory transferred arethe Albuquerque National Bank and the FirstNational Bank of Albuquerque, and the FirstNational Bank of Belen.

The following is a copy of the order of theFederal Reserve Board:

Whereas the Federal Reserve Board is authorizedand empowered under the terms of section 2 of the Fed-eral reserve act from time to time to readjust the Fed-eral reserve districts created by the Reserve BankOrganization Committee; and

Whereas all member banks of the Federal reservesystem located in the counties of Bernalillo and Valenciain the State of New Mexico have requested the FederalReserve Board to transfer the said counties from theeleventh Federal reserve district to the tenth Federalreserve district, and the Federal reserve banks ofKansas City and Dallas have been notified of the pro-posed transfer and have stated that they do not objectthereto; and

Whereas it appears to the FederaJL Reserve Boardthat the convenience and customary course of businessof the tenth and eleventh Federal reserve districtsand the best interests of the Federal reserve system willbe served by the transfer of the counties of Bernalilloand Valencia, in the State of New Mexico, from theeleventh Federal reserve district to the tenth Federalreserve district.

Now, therefore, it is ordered:(I) That the counties of Bernalillo and Valencia, in

the State of New Mexico, which are now located in theeleventh Federal reserve district, be and are herebytransferred to and included in the tenth Federal reservedistrict; and the boundaries of the tenth and eleventhFederal reserve districts be and are hereby readjustedaccordingly.

(II) That the changes and readjustments in thetenth and eleventh Federal reserve districts directed inthis order shall become effective on the 15th day ofApril, 1926.

(III) That the Federal reserve banks of KansasCity and Dallas be notified of the changes and read-justments directed in this order and directed to takesuch action as may be necessary for the transfer ofmembership of the member banks included in the terri-tory # transferred from the eleventh Federal reservedistrict to the tenth Federal reserve district.

(IV) That a copy of this order be filed with theComptroller of the Currency to be filed with the cer-tificate of the Reserve Bank Organization Committee.


, 1926 FEDERAL RESERVE BULLETIN 333

LAW DEPARTMENTAuthority of Congress for purchase of Buffalo branch

bank building.The following is a copy of a Joint Resolution

o£ Congress approved March 24, 1926, author-izing the Federal Reserve Bank of New Yorkto invest the sum of $600,000 in the purchaseof a bank building for its Buffalo branch:

[PUBLIC RESOLUTION—No. 9—69TH CONGRESS]

; [S. J. Ees. 44]Joint Resolution Authorizing the Federal Reserve Bank of New York

to invest its funds in the purchase of a site and the building nowstanding thereon for its branch office at Buffalo, New York.

Resolved by the Senate and House of Representatives ofthe United States of America in Congress assembled,That the Federal Reserve Bank of New York is herebyauthorized to invest in the purchase of land improvedby a bank building, already fully constructed, for itsbranch office at Buffalo, New York, a sum not to exceed$600,000, out of its paid-in capital stock and surplus.

Approved, March 24, 1926.

Change In law regarding State taxation of nationalbanks.The following act amending section 5219 of

the Revised Statutes of the United States withreference to State taxation of national bankswas recently enacted by Congress and becamelaw on March 25, 1926:

[PUBLIC—No. 75—69TH CONGRESS]

[S. 3377]An Act To amend section 5219 of the Revised Statutes of the United

States

Be it enacted by the Senate and House of Representa-tives of the United States of America in Congress assembled,That section 5219 of the Revised Statutes of the UnitedStates be, and the same Is hereby, amended so as toread as follows:

"SEC. 5219. The legislature of each State may deter-mine and direct, subject to the provisions of this sec-tion, the manner and place of taxing all the shares ofnational banking associations located within.its limits.The several States may (1) tax said shares, or (2) in-clude dividends derived therefrom in the taxable in-come of an owner or holder thereof, or (3) tax suchassociations on their net income, or (4) according to ormeasured by their net income, provided the followingconditions are complied with:

" 1 . (a) The imposition by any State of any oneof the above four forms of taxation shall be in lieu ofthe others, except as hereinafter provided in subdivision(c) of this clause.

• " (b) In the case of a tax on said shares the taximposed shall not be at a greater rate than is assessedupon other moneyed capital in the hands of individualcitizens of such State coming into competition withthe business of national banks: Provided, That bonds,notes, or other evidences of indebtedness in the handsof individual citizens not employed or engaged inthe banking or investment business and representingmerely personal investments not made in competitionwith such business, shall not be. deemed moneyedcapital within the meaning of this section.

94033—26 g

" (c) In case of a tax on or according to or measuredby the net income of an association, the taxing Statemay, except in case of a tax on net income, include theentire net income received from all sources, but therate shall npt be higher than the rate assessed uponother financial corporations nor higher than the highestof the rates assessed by the taxing State upon mer-cantile, manufacturing, and business corporationsdoing business within its limits: Provided, however,That a State which imposes a tax on or according to ormeasured by the net income of, or a franchise or excisetax on, financial, mercantile, manufacturing, and busi-ness corporations organized under its own laws orlaws of other States and also imposes a tax upon theincome of individuals, may include in such individualincome dividends from national banking associationslocated within the State on condition that it also in-cludes dividends from domestic corporations and may.likewise include dividends from national bankingassociations located without the State on conditionthat it also includes dividends from foreign corpora-tions, but at no higher rate than is imposed on divi-dends from such other corporations.

"(d) In case the dividends derived from the saidshares are taxed, the tax shall not be at a greater ratethan is assessed upon the net income from other mon-eyed capital.

112. The shares of any national banking associationowned by nonresidents of any State, shall be taxed bythe taxing district or by the State where the associationis located. and not elsewhere; and such associationshall make return of such shares and pay the tax there-on as agent of such nonresident shareholders.

"3 . Nothing herein shall be construed to exempt thereal property of associations from taxation in anyState or in any subdivision thereof, to the same extent,according to its value, as other real property is taxed.

"4. The provisions of section 5219 of the RevisedStatutes of the United States as heretofore in forceshall not prevent the legalizing, ratifying, or confirm-ing by the States of any tax heretofore paid, levied, orassessed upon the shares of national banks, or the col-lecting thereof, to the extent that such tax would bevalid under said section."v Approved, March 25, 1926.

Changes in-State Bank MembershipThe following list shows changes affecting State

bank membership during the month ended April 21,1926, on which date 1,426 State institutions weremembers of the system:

ADMISSIONS

District No. 2

Mid-City Trust Co., Plainfleld, N. J. . .Trust Company of Northern West-

chester, Mt. Kisco, N. Y._ _____

District No. 3

Dime Savings & Trust Co., Allentown,Pa . . . .

District No. 7

Wilmette State Bank, Wilmette, HL_,_

Capital

$200,000

100,000

231, 530

100,000

Surplus

$85,973

15,000

81,530

100,000

Totalresources

$512,437

216,133

1,590,052

2,854,202


334 JFEDEBAL RESERVE MAY, 1926

CHANGES

District No. S

Columbia County Trust Co., Blooms-burg, Pa., has changed its title toBioomsburg Bank-Columbia TrustCo., having absorbed the followingmember: Bioomsburg National BankBioomsburg, Pa..__ ____.„

District No. 6

Citizens Bank, West Point, Ga., hasabsorbed the following member: FirstNational Bank, West Point, Ga

District No. 7

Voluntary withdrawals:Farmers State Bank, Bargersville,

Ind.. .__• ___„Taylor County State Bank, Clear-

tield, Iowa..______ _____Closed:

Marshalltown State Bank, Mar-shalltown, Iowa--.-__

State Bank of Thompson, Thomp-son, Iowa ..__. „_„__„_.

District No. 8

Voluntary withdrawal: Bank of Crock-ett, Bells, Tenn _____

Succeeded by State member: BroadwaySavings Trust Co., St. Loiiis, Mo... .

District No. 9

Voluntary withdrawal: South ShoreBank, South Shore, S. Dak

District No. 11

Voluntary withdrawals:First State Bank, Estancia, N. Mex.Central Trust Co., San Antonio,

Tex_____ _____________ . . .Change of title: Farmers Guaranty

State Bank, Brady, Tex., has changedits title to Farmers & MerchantsState Bank.

Insolvent: First State Bank & TrustCo., Cuero, Tex_._ .__

District No. IB

Merged with State member: CitizensState Bank, Sawtelle, Calif_____

Capita]

$125,000

100,000

25,000

25,000

100,000

30,000

25,000

200,000

25,000

25,000

200,000

100,000

200,000

Surplus

$125,000

45,000

25,000

50,000

8,000

5,000

80, 000

5,000

1,812

35,000

50,000

50, 000

Totalresources

$2,181,319

1,247,279

265,343

174,734

2,616,954

306,841

418.878

2,634,420

299, 763

108.879

3, 661, 589

674,937

2, 522,100

Fiduciary Powers Granted to National BanksDuring the month ended April 21, 1926, the Fed-

eral Reserve Board approved applications of thenational banks listed below for permission to exerciseone or more of the fiduciary powers named in section 11(k) of the Federal reserve act as amended, as follows:(1) Trustee; (2) executor; (3) administrator; (4)registrar of stocks and bonds; (5) guardian of estates;(6) assignee; (7) receiver; (8) committee of estates oflunatics; (9) in any other fiduciary capacity in whichState banks, trust companies, or other corporationswhich come into competition with national banks arepermitted to act under the laws of the State in whichthe national bank is located.

Location

Boothbay Harbor,Me.

Framingham, Mass. _

Dis-trictNo.

1

1

Name of bank

First National Bank

F r a mi n g h am National.Bank.

Powersgranted

1,2,4, and &

Location

Union City, N. J____Freeport, N. Y______Haverstraw, N. Y-__

Mount Vernon, N. Y.Port Richmond, N.

Y.Red Hook, N. Y___.Syracuse, N. Y_.___.Edwardsville, PaLuzerne, Pa . . . _-.Newville, PaPhiladelphia, PaWatsontown, Pa.__.Snow Hill, Md__—.Towson, Md__-_Asheboro, N. C.____.Farmville, Va__-___.Miami, Fla . . .Bristol, Tenn.... . . . .Chicago, 111 . . . .

Chicago, 111 ___.Taylorville, 111Brillion, Wis_ _.Bunker Hill, 111Tell City, Ind-_._.._;Hancock, Mich......Munising, Mich

Lewistown, Mont.. .

Broken Arrow, Okla.Longview, Wash.. . .

Dis-trictNo.

Nane of bank

First National Bank_First National Bank __.National Bank of Haver-

straw.American National BankPort Richmond National

Bank.First National Bank. . . .Merchants National Bank__Peoples National Bank__._,._Luzerne'National BankFirst National Bank.Franklin' National BankFarmers National BankFirst National BankTowson National BankFirst National BankFirst National Bank...City National Bank........;First National Bank.___.__,Jefferson Park National

Bank.Mutual National Bank_____First National BankFirst National Bank. . . . .First National BankTell City National Bank....,First National Bank._______First National Bank of

Aiger County.National Bank of Lewis-

town.'First National Bank . . . .First National Bank.

Powersgranted

Ito9.1 to 9.1 to 9.

1 to 9.Ito9.

1, 2, and 3.Ito9..1 to 9.Ito9.1 to 9.1 to 9.1 to 9.Ito9.1to 9.Ito9.1 to 9.1 to 9.1 to 9.Ito9.

Ito9.1 to 9.1 to 8.1 to 9.1 to 9.2,3, 5, and 8.2, 3, 5, and 8.

1 to 9.

1 to 4, 6 to 9.1 to 9.

Changes In National Bank Membership

The Comptroller of the Currency reports the follow-ing increases and reductions in the number and capitalof national banks during the period from March 20 toApril 23, 1926, inclusive:

New charters issuedRestored to solvency.-...----.Increase of capital approved1..

Aggregate of new charters, banks restored tosolvency, and banks increasing capital____

Liquidations----..Reducing capital2.

Total liquidations and reductions of capital..

Consolidation of national banks under act of Nov.7, 1918. .———.—-— _____——-—

Aggregate increased capital for period _-.._-Reduction of capital owing to liquidations, etc.

Net increase..

Num-ber ofbanks

Amountof capital

$3,255,000•••• o

20, 025,000

23, 280,000

2, 380, 000350,000

2, 730, 000

54,700,000

23, 280, 0002,730,000

20, 550,000

1 Includes two increases in capital aggregating $11,000,000 incident toconsolidations under act of Nov. 7, 1918.

2 Includes one reduction in capital of $50,000 incident to a consolidationunder act of Nov. 7,1918.

Acceptances to 100 Per Cent

The following member institution has been author-ized by the Federal Reserve Board to accept drafts andbills of exchange up to 100 per cent of its capital andsurplus: Crocker-First National Bank, San Francisco,Calif.


MAT, 1926 FEDEBAL EESEEVE BULLETIN 335

BUSINESS STATISTICS FOR THE UNITED STATESINDEX OP PRODUCTION IN BASIC INDUSTRIES *

[Index and relatives for each industry adjusted for seasonal variations. Monthly average 1919«=100]

Y©ar and month

1925March.] _mi. _April.M a y • _ :

June-Ju ly . . . . .AugustSeptember LOctober. . . .November ;.___December

1926January. „_.. _February.March _

Generalindex

; 120119111110113309111116115121

120120123

Year and month

1925M a r e l u _ . _ _ _ _ j _ _ _ _ _ _ . ••."•_ ;

ApriL.L.... !

M a y . _ _ _ . •___ _June..^..July. .^ ._.„„August _._.___,__September . .„ ._October . . . . . . .NovemberDecember.. _.

1926January ____.February .._____„March!

Iron and steel

Pig iron

136128113107105

;• 1 0 2106113116130

131130131

i Steelingots

147128121115110117123130136149

149152157

Coal

Bitumi-nous

9510599

101105109114121126130

129130117

Anthra-cite

9610310398

113120

: 1123

234

120

Textiles

Cotton

110121103989991

103111116120

114119120

Wool

95929188879095989795

898487

Nonferrous metals

Copper

142136135136140135139136138139

141145143

Zinc

131; 124

127117121122121129129137

144135139

Food products

Wheatflour

949088

10212294

100• 9 6

7980

8390

100

Soleleather

70696i66

; 716962696359

566060

Sugarmeltings

133134115117117107143167135203

164147120

News-print

110115112110108105111115116117

115123126

Animals slaughtered

Cattle

10010410495

1079793998499

96102106

Cement

199199193197215207

, 204198194188

219181186

Calves

138124114126131138129147131166

146157137

Petro-leum

187194212210204206208198200196

193193188

Sheep

; 1021201171051018986887688

95105121

Hogs

9610192

10196

1081201159689

9181

103

Lumber

125123116117125116116125117133

125122124

Tobacco products

Cigars

86878893949195

1069585

808497

Ciga-rettes

170178175188179173183169165195

196188207

Manufac-tured

tobacco

89959697

1019496

• 998994

1021009S

* 1 This table contains for certain months the index numbers of production in basic industries together with the series of relatives used in con-structing the index. J_n making the final index the relatives are adjusted to allow for seasonal fluctuations and are weighted. The methods ofconstruction were described in detail and all relatives for each series since January, 1913, were published on pages 1414-1421 of the BULLETIN forDecember, 1922.

2 Revised., INDEX OF EMPLOYMENT IN MANUFACTURING INDUSTRIES *

Year and month

1925MarchApril . . .MayJune . .JulyAugustSeptember, i.October..„._ „ _NovemberDecember .

1926 ;January ;February. _March,;

Generalindex

96.495.994.994.293 193.995.197. iO97.297.1

96.397.097.2

Metals andproducts

Groupindex

'90.189.2

" 88 086.985 686.187.489. 491.092.6

92.694,294.6

Ironandsteel

89.588.787.588.384.985.486.688.489.991.6

91.993.593.8

[No seasonal adjustment

Textiles and products

Groupindex

100.098.996.495.493.394.094.196.997.397.2

97.397.497.1

Fabrics

101.0100.899.197, 593.193. 693.397.799.199.3

99.197. 697.1

Prod-ucts

98.696.592.992.893.494.595.1.95.895.094. 6

95.097.297.1

. Monthly average, 1919

Lum-berand

prod-ucts

99.6100.699.8

100.199.399.9

102.2102; 8102.0100.9

98.398.698.7

Rail-roadvehi-cles

89.988.884.984.784.584.583.783.082.684.6

84.685.7

• • • " • 8 7 . 1

Auto-mobiles

112.7121.7128.5122.8122.2124.2129.4137.7136.3129.6

130.2133.0136.1

=100}

Paperand

print-ing

105. 7104.7103.8103.5103.4103.2104.3106.0107. 2107.8

107. 5106.7107.4

Foodsand

prod-ucts

86.283.083.285.685.485.988.090.689.688.5

86.585.784.9

Leatherand

prod-ucts

92.588.886.883.085.790.292.191.889.086.1

87.989.588.3

Stone,clay,andglass

116.8123.2125.5125.9121.3124.9125.3124.7123.1121.0

114.4114. 6118.8

To-baccoprod-ucts

88.581.787.085.885. 985.087.190.189.790.1

80.484.283.3

Chem-icalsand

prod-ucts

75.575.473.272.973.072.675.476.477.477.6

70.977.077.0

1 This table contains for certain months index numbers of employment, together with group indexes for important industrial components. T h egeneral index is a weighted average of relatives for 34 individual industries. The method of construction was described in detail and indexes forthe above groups since January, 1919, were published on pp. 324-325 of the BULLETIN for May, 1925. See also p. 668 of BULLETIN for September, 1925,for certain revisions.


336 FEDERAL RESERVE BULLETIN M A T , 1926

INDEX OF PAY ROLLS IN MANUFACTURING INDUSTRIES»

[No seasonal adjustment. Monthly average, 1919=100]

Year and month

1925March'-'."——-—AprilMayJuneJuly . .A ugustSeptemberOctober.. _November - -December -

1926JanuaryFebruary . -M a r c h . .

Generalindex

110.1107 3107.4104.8102.4104.5103.9111.3111.7112.1

107.0111, 5113.0

Metals andproducts

Groupindex

97.294.494.691.186.889.788.796.297.7

101.7

99.1102.4104.2

Ironandsteel

96.593.994.090.486.188.887.795.196.3

100.6

98.3101.7103.4

Textiles and products

Groupindex

114.4108.0105.0101.6101.2103.899 1

107.5107.0107.9

108.1110.2109. 8

Fabrics

114.2111.7109. 9103.9100.9101.7

96. 6107.9109.0111.1

110.4109.0108.2

Prod-ucts

114.7103. 599.098.8

101.6106.2102. 1107.0104.5103.9

105.3111.5111.8

Lum-berand

prod-ucts

109.7107.9108.6109.7105.9108. 0111.8117.2116. 7116.4

105.8111.0111.9

Rail-roadvehi-cles

100. 295.491.690.486.788.084.989.291.491.7

85.891.994.5

Auto-mobiles

142.9156. 2163.9151.2150.0146.1155.3178. 0178.9163.5

136.0166.3170.7

Paperand

print-ing

139.4137.1136. 7135.5133.8133.7135.8142. 3145. 4148. 7

145.5144.9147.9

Foodsand

prod-ucts

98.894.097.2

100.098.999. 1

100.0104.5103. 6103.2

100.199.899.3

Leatherand

prod-ucts

100.091.590.385.189.098.994.895.887.986.5

89.794.293.2

Stone,day,andglass

143.4149. 9154. 6154.3145. 9155. 7151.6156. 8155.4151.3

136.9140.1144.3

To-baccoprod-ucts

88.374.290.990.389.090; 090.097.198.799. 3

86.084.088.4

Chem-icalsand

prod-ucts

101.697.698.495.795.693.194.9

101.1103.6104.9

102.2102. 8104.5

* This table contains for certain months index numbers of pay rolls, together with group indexes for important industrial components. Thegeneral index is a weighted average of relatives for 34 individual industries. The method of construction was described in detail and indexes for theabove groups since January, 1919, were published on pp. 324-325 of the BULLETIN for May, 1925. See also p. 668 of BULLETIN for September, 1925,for certain revisions.

INDEXES OF INDUSTRIAL ACTIVITY *

[No seasonal adjustment. Monthly average 1919=1001

Year and month

. 1925MarchApril .._May __June ,JulyAugust.September-OctoberNovember.December—

1926JanuaryFebruary. _March. „

Agricultural movements

Total

8672798388104152166149148

1088885

Live-stock

91878688869193117105106

Ani-mal

prod-ucts

108123139164150liy101101no117

93116

Grains

7340627599

13314996

108135

Cot-ton

714328121475

234310277239

1147464

Vege-tables

128125135142110107204233116

10694

123

Fruits

1069413«92151122244391177

To-bacco

531751

(s>73171165223326

344273

Mineral production

Total

123117124124129136121130125129

129115137

An-thra-citecoal

9699

108103113117

1123

28120

Bitu-mi-

nouscoal

97879196102116121137131136

138120119

Petro-leum

191194216212214212206204196194

190173192

Pigiron

140128115105105106107119119128

130115135

Cop-per

140140140139136135134141134137

141135150

Zinc

131124127117121122121129129137

144136

Lead

154143147151145143138164153161

1583 148164

Silver

10410911111611410510398104105

1093107111

Year and month

Manufacturing production

TotalIronandsteel

Auto-mobiles

Tex-tiles

Foodprod-ucts

Lum-ber

Paperand

printing

Leatherand Petro-

leumCement

andbrick

Tobac-co

Rub-ber

tires

1925March-,April..-!.. - . . . .MayJune .__-__.J u l y . . . . -August.September __October __„_ „„.November— -.__—__.December

1926January „__.February—.-March..

135133130126126122126141129128

129125142

147128121112109118120134134138

144131154

223260250239239153193270225191

220263

122119109105107104107-,118114119

120115122

95888794979610511498107

1049299

150155165160164167lfiO172139133

135137156

142142136133125128128139136138

142134144

101

848797971038485

204201212216222222209218212216

216198221

158188213202207207191206173152

130112151

116113119133135127131141120110

115110

190191195194202203183165155175

172177195

1 For description and early figures see BULLETIN for March, 1924, and for certain revisions see p. 739 of the October, 1925, BULLETIN...* Less than one-half of 1 per cent. * Kevised.


MAY, 1928 FEDERAL, BESERVB BULLETIN 337

COMMODITY MOVEMENTS

The following statistics are secured fromvarious sources and compiled in the form givenbelow by the Board's Division of Research andStatistics. Earlier figures, (in most cases since

1919) can be obtained from previous issues ofthe BULLETIN or upon application to the Divi-sion of Research and Statistics, Federal ReserveBoard.

Grain and Flour

Keceipts at 17 interior centers (000omitted):

Wheat (bushels) ._.,.—,Corn (bushels) ._. . . .Oats (bushels) „ -_—Rye (bushels) » -Barley (bushels) „ . . : . „ -.

Total grain (bushels).Flour (barrels)

Total grain and flour (bushels) . . .

Shipments at 14 Interior centers (000omitted):

Wheat (bushels) . . „ — . . .Corn (bushels) _Oats (bushels) --„•——Rye (bushels) -—-.Barley (bushels) . . . ..


Total grain and flour (bushels)

Stocks at 11 interior centers at close oimonth (000 omitted):

Wheat (bushels)....Corn (bushels)Oats (bushels)..Rye "(bushels) . . . .Barley (bushels) - — . . . .

Total grain (bushels).

Receipts at 9 seaboard centers (000omitted): !

Wheat'(bushels) . . .Corn (bushels) . . . . .Oats (bushels)Rye (bushels)Barley (bushels).. *.., . . .


Total grain and flour (bushels).. .

Stocks at 8 seaboard centers at closeof month (000 omitted):

Wheat (bushels)...Corn (bushels)__ „Oats (bushels)..Rye (bushels)Barley (bushels).. *.

Total grain (bushels)

Wheat flour production (barrels, 000omitted)...

TobaccoTobacco sales at loose-leaf warehouses

(pounds, 000 omitted):Dark belt Virginia _ . . . . .Bright belt VirginiaNorth Carolina . . . LBurley _ -.. _Western dark . . .

TransportationRevenue freight loaded and received

from connections (cars loaded, 000omitted):

Classified by nature of products-Grain and grain products. . . . . . .Livestock

March,1926

February,1926

15,16320,42812,3281,0322,958

51,9082,009

60,949

11,9238,529

13,448753

1,923

36, 5753,121

50,619

25, 554

46,74512,9384,686

120,910

7,779708

2,256618

2,682

14,0432,011

23,093

3,310861

1,101140

2,273

7, 685

9.901

3,1S8219, 593

178124

17,16526, 76512, 244

1,0822,588

59,8441,728

67, 622

9,09310,887

5301,332

31, 7042,803

44, 317

29, 39528,86151,02812, 7215,576

127,581

1,2091,876

3962, 121

14, 4811,609

21,992

4,5931,7561,412

2952. 341)

10, 406

8.881

3,9788.12112, 70323, 93734, 724

171113

March,1925

16,96723,80214, 733

8333,372

59,7072,091

19,115

18, 43412, 43016, C84

3492, 085

49,9832,762

62,413

40, 65628, 78456, 77910, 1902,710

139,119

14,338570

2,3811,2191,445

19,9542,482

31, 121

11,028" 8341,2987,9781,589

22. */27

9,297

670736

2, 67610. 474

162

-• 118

Transportation—Continued

Revenue freight loaded, etc.—Contd.Classified by nature of products—

Coal . . . .—. . . . . - .—. . . . .Coke . . . - —

Forest products . .„ . .Ore...—— - ~ .Merchandise, 1. c. 1Miscellaneous... „. „„-.

Total..

Classified by geographical divi-sions-

Eastern..Allegheny....PocahontasSouthern. •. .Northwestern.Central westernSouthwestern

Total.

March,1926

80464

34450

1,1941,583

4,341

1, 062887226718523625299

4,341

February,1926

7229942990

1, 292

3, 676

842747215609458539266

3,676

March,1925

BUILDING STATISTICS

Building permits issued in 168 cities,grouped by Federal reserve districts:

Number of permi ts -Boston (14 cities)New York (22 cities)Philadelphia (14 cities)Cleveland (12cities)..Richmond (15 cities) . . . -Atlanta (15 cities) .Chicago (19 cities) •. . . -St. Louis (5 cities) •_Minneapolis (9 cities)..Kansas City (14 c i t i e s } . . . . —Dallas (9 cities).. .—. . . . .San Francisco (20 c i t ics) . . . . . . .

Total.

Value of permits (dollars, 000omitted)— ;

Boston (14 cities)New York (22 cities) :.__..Philadelphia!(14 cities)^__.Cleveland (12 cit iesj—L—... . .Richmond (15 cities)..__._-Atlanta (15 cities) : . . . . .—Chicago (19 cit ies). . . -- .St. Louis (5 cities) . . . -.Minneapolis (9 cities)...___.—Kansas City (14 cities).Dallas (9 cit ies). . . . . . . . !San Francisco (20ci t ies) . . . .—

T o t a l . — . . . . „ — — — .

Building contracts awarded, by Fed-eral reserve districts (dollars, 000omitted): ;

Boston _ __.-— •_..New York.. :._..' _._.Philadelphia....^ - -Cleveland -----Richmond. - »--Atlanta... . ._ . : ------.Chicago.. __ . -- . - . ._St. Louis . . .— -__- .„ -MinneapolisKansas City .'_Dallas . . . . .

Total (11 districts)..

2,0639,5532,7755,9813,9214,95310,1842,9511,3683,1072, fiOl

12,199

61,656

10, f>32130,067

20, 70427,43122,0<;614,3fil66.N2811,5*74,2849,039

10. 1973K, 286

364,012

32, 476158, 4544.5,71965, 12157, 93561,08191, 35933. 52715, 02913,89723. 281

597, b79

8595,0451,2063,5602,4844, 3806, 7062, 158721

2,0582. 3L28,89a

40,527

5, 45776, *9513. 24710, 25910, 7*419, 16942,0716,4012.7436,5147, 6hO2f>. 736

|

18, 494104, 56825, 53635. 03325, 96963, 55853, 84823, 5516.89312. 73t>19,714

64254

35152

1,1271, 504

4.010

955828180679501584284

4,010

3, 03613,4514,0306,5014,2993,88712.8863,1641,7124, 0862, 764

13, 227

73. 103

14,114112,33130.71725,28319,02311.48060.01610.4746,02311,3777,28040,216

32,28487, 05048. 90268, 85759,80934, 27400, 30532. 13610. 41014,0h512.819

3b9,900 491,011

94033—26—~6


338 FEDERAL RESERVE MAY, 1926

WHOLESALE AND RETAIL TRADE

WHOLESALE TRADE IN THE UNITED STATES, BY LINES »

[Average monthly sales 1909=100] .

1924October... .November..December..

1925January., L.February.*.March L.Apri l . . . . . . .May L.JuneJulyAugust. . . . .September..October....November..December,.

1926-January.,,..February.^.March

Gen-eral

index

8794

101

787685

Gro

10089

Meat

786905

7169736875797978

• 82877272

* 797574

Drygoods

1048877

82889685

•' • 7 78285

1061121189275

798693

Shoes

675757

434663655454476572775954

435073

Hard-ware

1109899

8990

107107101

. 1059998

109122103101

8687

106

Drugs

128109109

116109121115106110111108120134110111

111110133

1 For description of the wholesale trade index see FEDERAL RESERVEBULLETIN for April, 1923.

CHANGE IN CONDITION OF WHOLESALE TRADE, BYLINES AND DISTRICTS

Groceries:United States.. .B oston districtNew York district ___Philadelphia districtCleveland districtRichmond district. -Atlanta districtChicago districtSt. Louis district •___Minneapolis district .Kansas City dis t r ic t . . . . .Dallas districtSan Francisco district _

Dry goods:United States.New York districtPhiladelphia district- —„Cleveland district,Richmond district-•_____.Atlanta districtChicago district __._St. Louis districtMinneapolis districtKansas City districtDallas district. — .San Francisco district

Shoes:United Sla tes . . . . . ______Boston districtNew York district. ._Philadelphia districtCleveland district

Percentage changein sales, March,1926, comparedwith—

Febru-ary, 1926

13.818.717.712.512.111.012. 615,14.1

15.015.41.6

14.0

8.95 9

35.58.2

- 4 . 39.3

17.0—18.3

- 5 . 03.1

-17 . 937.0

45. 429.963.494.847.3

March,1925

2.02.68.8

- 1 . 60.0

- . 310.5

- 1 . 42.3

- 7 . 0- 2 . 0

.8—5.7

- 3 . 3—6.9

- . 9

- 7 . 8—4.1- 2 . 1— 1.5

-12 .04. 9

-10 .76.8

15.86.67.33.45.9

Percentage changein stocks l at endoj March, 1926,compared with—

Febru-ary, 1926

—.9—.1

- 3 . 5- 1 . 2

- 5 . 2

- . 7~7.3- 2 . 0- 2 . 4

1.0

1.4

- . 8.3

- . 12.51.9

- . 76.0

- . 74.9

- 4 . 3—2.1- 8 . 7- 4 . 7—.4

March,1925

1.19.6

- 1 . 42.2

- 5 . 6

- 4 . 1- 4 . 1

0.0- 2 . 0

2.0

—6.7

2.4-11.5-21.9

19.2- 5 . 6

—15.22.0.1

- 1 . 7

—25.3— 13.3

- 4 . 5-24 . 9-16 .1

1 Changes in total stocks for the United States are weighted averagescomputed on the basis of firms which have reported regularly to theFederal reserve system since January, 1923.

2 Sales of agricultural implements for the United States are compiled

CHANGE IN CONDITION OF WHOLESALE TRADE, BY. LINES AND DISTRICTS—Continued

Shoes—Continued.Richmond districtAtlanta districtC hicago districtSt. Louis districtMinneapolis district _San Francisco district

Hardware:United StatesNew York districtPhiladelphia districtCleveland district __Richmond districtAtlanta districtChicago districtSt. Louis district _.Minneapolis districtKansas City districtDallas districtSan Fiancisco district

Drugs:United States . .New York districtPhiladelphia districtCleveland districtRichmond district _.Atlanta districtChicago districtSt. Louis districtKansas City districtDallas districtSan Francisco district

Furniture:Richmond districtAtlanta district _.St. Louis districtKansas City districtSan Francisco district

Agricultural implements:United States 2

Minneapolis districtDallas district .

Stationery and paper:New York districtPhiladelphia districtAtltanta districtSan Francisco district.. -

Automobile supplies:San Francisco district

Clothing:New York districtSt. Louis district

Cotton jobbers:New York district

Silk goods:New York district

Machine tools:New York district

Diamonds:New York district

Jewelry:New York districtPhiladelphia district

Electrical supplies:Philadelphia districtAtlanta districtSt. Louis districtSan Francisco district

Millinery:Kansas C ity district

Stoves:St. Louis district

Percentage changein sales, March,

• 1926, comparedwith— _

Febru-ary, 1926

43.535.959.215.544.032.1

22.025.136.118.3

L4S33.33.3

29.022.1

17.6

20.918.122.024.311.410.924.215.620.95.7

20.6

- 4 . 410.410.934.85.2

13.550.0

-28.6

1.123.114.614.0

26.2

17.2-15.9

1.8

6.7

22.0

21.8

4.420.4

17.71.5

12.711.9

4.2

30.9

March,1925

21.221.410.1

-14.413.0

- 2 . 5

- 1 . 2- 7 . 5- 2 . 8- . 6

- 5 . 217.1

- 8 . 1- 3 , 1

6.0- 1 . 4—.65.2

9.810.315.315.17.2

15.06.95.05.76.05.7

—7.6- 3 . 7

-27.8- 4 . 8

9.5

17.739.05.7

10.8- 2 . 815.4

6.1

7.0

-15.42.3

-17.8

- 4 . 7

19.7

21.6

2.326.0

14.388.29.9

- 3 . 1

-10.9

- 3 . 9

Percentage changein stocks * at endof March, 1926,compared wittbr-

Febru-ary, 1926

- . 5

- 4 . 2- 7 . 9- 6 . 0

1 01.52.62.11.92 92.5

40.55.0

- . 9.8

1.4

- 1 . 0

1.2

5.31.8

—.94.2

—2.8

7.02.3

. 6

-11.7

- . 3

2.91.3

1.8-11.9

4.3

27.6

March,.1925 ,

- 2 . 7

-36.77.5

-17.0

5 41.2

- 8 . 4- 4 . 9

6.91 9

—9 6-18.6

3.0.9

— 8

6.8

8.0

6.1

- 2 . 53.2

15 620.23.5

39.05

. 2

-10.1

M8.8

* - 9 . 2- 6 . 6

-11.4—16.3-10.3

-19.4

by the Chicago Federal Reserve Bank from reports of leading manufac-turers and include all of their domestic business.

3 Stocks at first of month; quantity, not value.4 Includes diamonds.



RETAIL TRADE, BY REPORTING LINES!

[Average monthly sales 1919=100]

Year and month

0 , W WJ

1925JanuaryFebruaryMarch..April.. AMayJuneJulyAugustSeptemberOctober.. _.November „__December

1926January. . -February „.March

Sales without seasonal adjustment

108101121136128.126

121165145226

114104130

10810511911795102878911$170144166

116111130

250233252258254254259243245318272332

286289302

151156177195191187183195191237220427

166170199

.a aif•81

155146160159

167166171169179107225

178172

122119131131143134136142142151130212

127127142

107100127177149152122120

92

105107

104128

129 136164 | 141136188

10897143

139214

101103112

die

O

iii

a>'tft c

162175188210195184181202202215195280

167173206

Sales with seasonal adjustment

1SSg§

124131J211331241261281,25134145129141

130136

11011610-J114100120117118120131116140

118123

130 112

ill£ « co

249243233255254257269255258300270318

284303278

| | |

207209185208201203201205206219211231

228227207

161161159164160170164171172175177185

185189194

141140135139140137137145142145138157

146151147

l || sCO

141x491271*2HO142134153135145126143

142145143

ie

ch{

chai

n

112120116126116125140143136117111114

122126124

193207186210202197185202204209205191

199205204

* For description of the retail trade indexes see FEDERAL RESERVE BULLETINS for January and March, 1924.J Index of sales of grocery chains revised. Comparable index numbers for all months since January, 1919, may be obtained from Division of

Research and Statistics, Federal Reserve Board.

DEPARTMENT STORE SALES, BY FEDERAL RESERVE DISTRICTS

[Average monthly sales 1919=100]


United States

Boston __--New YorkPhiladelphiaClevelandIt fchinondAtlantaChicago _-MinneapolisDallasSan Francisco

Num-ber

of re-port-ing

firms

359

24632254233563232131

Sales without seasonal adjustment

Mar.

130

119131138127130108145

94111158

1926

Feb.

104

931081031069192

1197693

117

. Jan.

114

131124112108103

89119

8594

129

1925

Dec.

226

225243222218230190244167180253

Mar.

121

110124125125119

9912797

107142

Feb.

101

941071011068984

1078190

113

Jan.

108

1101201051079383

1129292

128

Sales with seasonal adjustment

1926

Mar.

130

118129149125126109145

96105160

Feb.

135

125141128130122121151108118154

Jan.

130

145136127124125108140300109145

1925

Dec.

141

141148141138133117156V

113111161

Mar.

121

11012213512311510012799

101143

Feb.

131

126140125137120111136115114149

Jan.

124

122132120123113102132107106145

DEPARTMENT STORE STOCKS, BY FEDERAL RESERVE DISTRICTS

[Average monthly stocks 1919=100]


United States

BostonNew YorkPhiladelphiaCleveland ~-Richmond - .---

Chicago -- -- -

DallasSan Francisco -

Num-

of re-port-mg

firms

314

24631352192251221929

Stocks without seasonal adjustment

Mar.

143

124142201137128122162110128141

1926

Feb.

132

113128183124121112153101118132

Jan.

125

110125167112114111144

96108126

Dec.

129

11913117612312010214810111)124

1925

Mar.

139•

126

135185137131113156117125136

Feb.

127

115123167125118107145106113126

Jan.

119

112118147112109

99137

99103123

Mar.

141

124139197136123121163106127139

Stocks with seasonal adjustment

1926

Feb.

140

121138195134128116105104125137

Jan.

141

122140187133135123160108126137

Dec.

139

122138183132133114159110130136

1925

Mar.

137

127132182136125112158112124134

Feb.

135

123132177134126111156109120131

Jan.

134

124132164133129110154111119134


340 FEDERAL RESERVE BULLETIN M A Y , I 9 2 6

FOREIGN BANKING AND BUSINESS CONDITIONSANNUAL REPORT OF THE GERMAN REICHSBANK

adopted by the bank directors, the unsatisfac-tory features of credit rationing were more andmore obviated; in particular, adjustments ofconsiderable magnitude and large extensions ofquotas were made in response to seasonal andlocal needs. Of still greater importance wasthe announcement of the Reichsbank that itwas prepared to rediscount acceptances of cer-tain first class banks and banking establish-ments without including these in the regularcredit quota. In regard to the purchase andsale of securities, the list of securities eligiblefor purchase was repeatedly extended by the

The annual report of the German Reichsbankfor 1925, presented by the board of directors tothe general assembly of stockholders on March26, 1926, contains the following summary ofthe operations of the bank and survey of eco-nomic conditions:

During the year 1925 confidence in the newGerman currency became more firmly estab-lished. Quotations of the reichsmark on theforeign exchanges no longer showed any devia-tion from parity. In the German commercialbanks, in the savings banks, and in the otherfinancial institutions deposits increased in amost encouraging way. Inasmuch as all de-mands made upon the Reichsbank for foreignexchange bills were met always and to their fullamount, the gold convertibility of notes waspractically reestablished.

In contrast to the satisfactory developmentof the currency and exchange conditions, thegeneral economic situation, especially in thelatter half of the year, unfortunately presenteda less favorable picture—it moved steadilytoward a crisis. It almost seemed as thoughthe inevitable results of the manifold blows offate which Germany had suffered during thelast 10 years would get the better of the deter-mination of the German people to achieve self-support and reconstruction. In particular, thecontinuing shortage of working capital, whichduring the inflation period had been either de-stroyed or diverted to unproductive uses, hadmade the urgently needed restoration of Ger-man industry much more difficultJ and in con-nection with excessive interest charges and taxassessments as well as with unfavorable priceand market conditions, in spite of the politicalray of hope, finally led to a disastrous climax ofreduced production, unemployment, businessdepression^ and bankruptcies.

Although the Reichsbank was assuredly notin a position to supply German industry withcapital by the aid of the printing press, it never-theless relieved the situation in so far as it wasable—it continued to extend loans to the fulllimit permitted by its currency policy, and itassisted in word and deed all efforts toward themuch-needed accumulation, both at home andabroad; of capital sums for long-term loans forproductive purposes.

The strict credit policy adopted in April,1924;, in the interest of the currency could notbe modified to any extent during the past year.Nevertheless, through various further measures

MILLIONS OF REICHSMARKS

5000

4000

3500

3000

2500

2000

CIRCULA1NON AND

Tin

L.0AKS

ota (MoneyCirculation

LoansBanks of

1925

—yMILLIONS OF REFCHSMARKS

5000

^500

^000

3J00

3000

JAN. FEB; MAR. APR. MAY JUN. JUL . AUG. 5EPT. OCT. NOV.J2000

Total money in circulation in Germany, including Reichsbank notes*Kent6nnank notes, notes of the private banks of issue, and subsidiarycoins; and total loans of the Reichsbank, the Ren ten bank, the privatebanks of issue, and the Gold Discount Bank.

inclusion of numerous kinds of mortgage bondspayable in gold or in reichsmarks.

As is indicated by the accompanying chartshowing the money in circulation comparedwith the discounts and loans on securities atthe Reichsbank, the Rentenbank, the privatebanks of issue, and the Gold Discount Bank,the amounts lent to business enterprises, evenin spite of the depression that has taken place,were somewhat larger at the end of 1925 thanat the end of the previous year. In the mean-time, however, the loans made by the com-mercial banks and other credit institutions hadshown a very notable increase; and during theyear capital sums to the value of 2 j ^ billionreichsmarks had come into the country froig


MAY, 1926 FEDERAL EESEEVE BXJLLETIK 341

abroad. If these vast new credits have not re-lieved the capital famine of German businessmore than was actually the case, the reason wasgenerally that these credits could not be placedat the disposal of borrowers for sufficientlylong terms nor on sufficiently favorable terms.The sharp rise shown by the curve for thecirculation of lawful money, along with whichthere went an increase in means of paymentother than cash, gives further confirmation ofthe fact that the policy of the Reichsbankwhich permitted such an.expansion of the cur-rency was earnestly considering the interestsof German business. That it has exercised nomisdirected restraint is also shown by the in-creasing proportion of protested bills andfrozen discounts and loans on securities whichhave appeared in the condition statementsduring the year.

In looking back upon rising prices andwages, as well as upon the prevalent specula-tive turn of mind which has lasted over from

10

GERMAN INTEREST RATES

fiteicfcsbar k Redisc. Rate

Monthly Ratej - ^ - d . . — . , . . , » „ .

Open Market Ra te*"" - -——^, ,

JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SEPT. OCT. NOV. DEC.

the period of inflation, the paradoxical chargehas sometimes been made against the Reichs-bank during the past year that it has gone toofar in its granting of credits and in its purchasesof foreign exchange. In reply to this the bankcan point out that it has unquestionably ful-filled its primary duty of maintaining confi-dence in the currency both at home andabroad, and that it has rendered all possibleservice consistent with this duty to theurgent needs of German business. The bankhas also continued during the past year, withenergy and with notable success, its efforts toassist German production by reducing interestrates and the cost of credits. The accompany-ing chart shows the decline of the more im-portant interest rates during 1925.

The Reichsbank itself lowered its discountrate on February 26, 1925, from 10 to 9 percent, and its rate on loans on securities from12 to 11 per cent. The still more strikingdecline in the rates of the Gold Discount Bankwill be discussed later on. In the handling of

giro accounts, costs were reduced for bothretail and wholesale transactions, and chargeswere lowered for deposits of persons who hadno regular account. In the purchase of com-mercial bills, the bank modified its customarypolicy. For bills to the amount of 5,000reichsmarks and over, the minimum discountperiod was reckoned at 5 interest days in-stead of 10, as formerly. For the purchase ofchecks, also, the period of interest paymentswas reduced from 10 to 5 days. The expecta-tion that the whole level of interest rates andcharges would be influenced by the measurestaken by the Reichsbank has been fullyrealized, although open-market rates have forthe most part remained at a height veryburdensome for borrowers aiid for businessinterests generally.

Conditions in the German money and capitalmarket have unfortunately failed during thepast year to become normal. To be sure,money was almost always to be had in ade-quate amounts, but almost entirely for shortterms. The supply of ready money on themarket was increased by the growth of cashholdings of business enterprises, by the build-ing up of capital sums in savings banks, byforeign funds of various kinds which, con-verted into reichsmarks, had been divertedfrom their original purpose and were seekinginvestment in the money market, and by an.accumulated surplus in the hands of thepublic. During the latter part of the yearsums were also released on account of thebusiness depression. In its efforts to convertas far as possible into longer term investmentssuch capital sums as were not needed in themarket, the Reichsbank continually founditself hampered by the fact that neitherlenders nor borrowers were willing to obligatethemselves for any but the shortest possibleperiod because of the uncertainty of moneyand interest developments. This circumstance,as the course of security values showed, wasmost disastrous to the reconstruction of themarket for mortgages, stocks, and bonds, andcreated for the time being an impossible situa-tion for agriculture. In this connection men-tion should be made of the measures which theReichsbank adopted to assist the private dis-count market to secure suitable investment forthe so-called public funds, and to direct foreigncredits into the right channels.

The reconstruction of the private discountmarket was for many reasons of great impor-tance for German business. It made it possibleto meet the credit needs of business at a rela-


342 RESBRVU BULLETIN MAY, 1926

tively low price and independently of thecredit rationing of the Reichsbank. In orderto create the necessary foundations for themarket, the Reichsbank encouraged thosefirst class banks .and banking houses in.Berlinwhich belonged to the so-called "Stempel-vereinigung" to offer their acceptances oncemore for purchase and sale as a means ofmaking their own credit resources available.With the provision that the total of these ac-ceptances should stand in a prescribed ratio tothe assets of the bank in question, the Reichs-bank announced that it would admit suchacceptances to rediscount without includingthem in reckoning the apportionment of credit.The bank hoped in this way to stimulate thepurchase of private discounts. The bankinghouses above mentioned mutually agreed thatfor the present no firm shoulcl put out accept-ances in excess of one-half of its paid-in capitaland surplus. Corresponding agreements wereentered into with other first class banks inFrankfurt, Cologne, Hamburg, Mannheim,and Carlsruhe; and negotiations were begunwith banking firms in other places.

The report for 1924 spoke in detail of theefforts of the Reichsbank with regard to theadministration and the application of thereserves of public funds and of other capitalsums which were built up under legal com-pulsion, or which, like the money in the savingsbanks and insurance companies, had alwaysbeen under government supervision. Theefforts of the bank to bring about the invest-ment of these funds according to soundeconomic principles were continued during theyear under review. Thus, part of these fundsfound investment in the general credit businessof the Reichsbank, which then transferredsome of the rediscounted bills in its portfolioto the various organizations. Another part ofthese funds was supplied by the Reichsbank tothe private discount market. Furthermore,considerable amounts of these public funds wereplaced in the banks and other financial institu-tions by agreement with the Reichsbank, andwere then made available by these as creditsfor business. It was exceedingly significantthat the bank, having regard to the clearlydefined interests of lenders, succeeded in con-verting part of the public funds, hitherto lentfor only short terms, into long-term investmentin agricultural securities and mortgages, asused to be the prevailing custom before thewar.

We can not forbear emphasizing once moreat this point that the excessive cash reservesaccumulated by public authorities at the close

of the inflation period seem to us a thoroughlyunhealthy undermining of the strength ofGerman business. It is to be hoped that achange may be brought about in this respectby the proposed lowering of taxes and by achange in the financial administration. Inorder that all capital sums that may becomeavailable or that may be newly built up may bereserved first of all for productive enterprise, allgovernmental authorities of the Reich, of theStates, and of the municipalities ought toexercise the utmost restraint not only in seekingto obtain foreign credits but also in makingdemands on domestic resources. Also theseparation of the postal service and the railwaysfrom the finances of the Reich shows itself in itspresent form more and more capable of im-provement in the interest of a united and con-centrated pooling of the resources of all publicauthorities. The question how, after the de-cline of the cash reserves of the Reich, thereserves of the post office and the railways can bemade available for the general account of theReich in the way formerly customary, isurgently pressing for solution. In regard tothis, the Reichsbank has many times madedetailed suggestions.

As to the position which the Reichsbank hastaken with regard to foreign capital cominginto Germany, detailed explanations were madein last year's report. The same principles haveguided the policy of the Reichsbank duringthe year under review. Furthermore, the banktook occasion jbo advise against contractingshort-term foreign loans, and in general to ad-vise longer term credits, with the result thatthe proportion between short-term and long-term foreign indebtedness has made notable im-provement in the direction indicated.

The bank has taken up during 1925 allforeign exchange bills which originated fromforeign credits and were offered to it, and inthis way has rendered a great deal of assistancein the line of credits to German trade andindustry; for foreign credits which were notused directly to pay for imports could be madeavailable for domestic purposes only whenconverted into reichsmarks. But, on the otherhand, by the purchase of foreign exchange thebank at the same time performed its duty inrespect to currency policy. For instance, if ithad declined rather large offerings of foreignexchange, the stability of the currency wouldhave been imperiled, and an overvaluation ofthe mark in comparison with foreign currencieswould have come about. In the interest ofimport and export trade and of obtainingcredits, and for general currency reasons, it


MAT, 1926 FEDERAL BES1BVE BXTLLETlH 343

seemed imperative to avoid such a departurefrom parity, even though in the long run itmight have brought gold into the country.Moreover, the Reichsbank was, through itsown efforts, in a position to buy or sell gold atany time against foreign exchange bills withoutthe danger of disturbing the course of theexchanges; for it repeatedly made use of thispower during the year in order to provide therequired 30 per cent effective gold reserve forthe increasing note circulation. I t had to goeven further in this respect than was necessaryfor the needs of the moment in order to provideagainst unforseen emergencies as well as for theexchange of the Rentenbank notes in circulationinto Reiehsbank notes. On the other hand,the accumulation of gold is a measure whichfor technical market reasons can be pursuedonly gradually and with an eye tovthe future.I t may be mentioned with thankfulness at thispoint that the bank directors have arrived atcomplete agreement with friendty foreign banksof issue in regard to the above-mentionedmeasures of gold and exchange policy, so thatthe efforts of the central banks toward cooper-ation have made encouraging progress.

In its policy of furnishing foreign exchangebills, the Reiehsbank has likewise 'made nochange. As has already been mentioned, thebank has satisfied every demand made upon it;especially about the middle of the year it met'extensive demands amounting to many hun-dreds of millions of reichsmarks without anyensuing disturbance of the exchange market oruneasiness of any kind.

The influx of foreign capital into Germanyduring 1925 continued to an extent which wassomewhat dangerous to our currency policy, sothat it seemed imperative to do everythingpossible without injury to legitimate Germanbusiness interests to contract the use of foreigncredits to absolutely necessary and supportableamounts. The most desirable use of suchcredits is to promote the kind of productionwhich will benefit the German trade balance—that is, which will serve to increase exports orto decrease imports. Inasmuch as loans topublic bodies do not for the most part fulfillthese conditions, the Reichsbank set aboutcreating a special advisory council for foreigncredits to public organizations. In this councilthe bank is always represented. The functionof the council is to examine the applications forforeign credits made by communities, com-munal organizations, and states, as to their pur-pose and their necessity, and with regard to thegeneral business and currency situation. I tcan not be emphatically and seriously enough

reiterated that the sums of several millionreichsmarks which even now have to be real-ized annually in foreign currency for theservice of interest and amortization on foreignloans constitute an additional heavy burden,which, besides other things, must be taken outof German business under certain circumstancesif German credit is to be maintained. If asufficiently large amount of foreign cash orcash equivalents should not be produced in thenormal processes of business, then a severecurtailment of domestic credit and a corre-sponding raising of domestic interest rateswould have to provide for the improvement ofthe German balance of payments. Thoseauthorities which float foreign loans or permitthem to be floated, except under the compulsionof direst necessity, ought to be aware of thisweighty responsibility for currency and eco-nomic conditions. . .•."• • • "

In this connection it should be further men-tioned that the Gold Discount Bank wasdeprived of the note-issue privilege at the timethat the new banking law went into effect,which, however, it had never used, and hadbegun the liquidation of its business; in April,1925, the bank renewed its activity with theconsent of all parties concerned, because itseemed desirable in the interest of Germanbusiness to retain for those business enterpriseswhich took part in .foreign commerce thismeans of obtaining foreign credits. TheReichsbank, as was mentioned in last year'sreport, had acquired all the shares of the GoldDiscount Bank and paid back the 'creditgranted by the Bank of England to the amountof £5,000,000 even before it fell due. Thecredits granted by the Gold Discount Bankhad reached-an amount-of £8,800,000 by theend of last year. Further credits to theamount of about £485,000 were sanctionedbut not yet drawn upon. With the resumptionof business the discount rate was lowered to7 per cent on May 19, 1925, and again to 6per cent on October 14.

Discussion of the enlargement of the func-tions of the Gold Discount Bank for the pur-pose of assisting agriculture will be deferred tonext year's report. The motives for this actionare. the same which have guided the Reichs-bank in other measures for the relief of agri-cu]ture—-to make available, so far as possible,the sums of money hitherto offered as short-term loans for the long-term credit needs ofagriculture. Considering the great economic;importance of an increase in agricultural pro-duction, it seemed obvious to the directors ofthe bank that they should regard the interests



of agriculture with special favor. For triemeasures taken during 1924 in the directionsmentioned, we refer to last year's report. Inconsideration of the unrelieved distress of theagricultural situation, which, apart from thescarcity of working capital, was further aggra-vated by the unfavorable development ofprices for agricultural products, and even moreby the fact that the market for long-termcredit on which agriculture is particularly de-pendent had been almost wholly destroyed,the Reichsbank extended the most completecooperation in the conveyance of rentenmarkbills to the Rentenbank as provided by law.The Reichsbank has many times renewed someof the agricultural bills which had been drawnin 1924 in order to give the needy agriculturistopportunity meanwhile to obtain credits else-where or to transfer his obligations to theRentenbank. But, furthermore, even after thetransfer of its agricultural bill portfolio to theRentenbank, the Reichsbank has bought newagricultural bills, so far as was permissibleunder the provisions of the new banking law.For these bills also it has many times grantedextensions.

The indirect credit assistance which theReichsbank extended to agriculture during theyear under review, by trying in every way tostimulate agricultural loans on real estate, has

already been discussed in another part of thisrecord. This assistance was rendered espe-cially by the allocation of all kinds of publicfunds to definite credits for agriculture—forexample, for fertilizers-—and by investment inagricultural securities; also by large purchasesof such securities for the pension fund of theReichsbank itself at the beginning of the year1926. The security market was thus stimu-lated to a higher price level, a developmentwhich was further strengthened by the above-mentioned action of the Gold Discount Bankin favor of agriculture; this encouraged* theaccumulation of agricultural securities, bene-fited the whole market for agricultural realestate loans by a notable lowering of the bur-dens of interest and other charges, and ledgenerally to a definite easing of the capitalmarket. To achieve this end and to allayany doubts which might arise as to theirliquidity, the Reichsbank. has furthermoremany times lengthened the list of agriculturalsecurities which should be eligible for loans onsecurities at the Reichsbank. Finally, men-tion should be made of the cooperation of theReichsbank in the creation of the Rentenbank-kreditanstalt and of the Reichsbank's activi-ties as trustee for the foreign loans which thenew credit institution has floated.

ANNUAL REPORT OF THE, BANK OF POLAND

The report of the Bank of Poland for theyear 1925, presented at the annual meeting ofthe stockholders on March 10, contained thefollowing review of the year:

The reformation of the currency and ofGovernment finance have disclosed numerousshortcomings" in the economic organization ofthe country. We must seek the cause of thehappenings of this past year not in this or thatrneasure of the Government, but in the veryfoundations on which the Government wasbuilt and in our past history. Poland owesits unfortunate economic situation to the will-ful recklessness exhibited in regard to itsterritories at the time of the partition, to theravages caused by the World War, to thedisastrous occupation of the country, then tothe inflation of the currency and the worldcrisis which followed the war, and, lastly,after the declaration of the independence of thecountry, to the general optimism which, fromthe economic point of view, was based onfalse ^assumptions. The worst damage hasbeen 'done in the matter of liquid capital..

The reorganization of the finances of theGovernment, begun at a rapid rate and withoutassistance from abroad, had brought togetherfor the treasury numerous reserves, whichbeing thus pooled for the service of the fiscalrevenues, seemed to guarantee the equilibriumof the budget. The support given by the pub-lic to the plans for reconstruction was consid-erable, and was shown particularly on' theoccasion of the offering of subscriptions toshares of the Bank of Poland. Unfortunately,in less than one year an unfavorable reactioncame about, due not only to the poor harvestand to the world crisis, but also to errors ofmanagement. During the latter half of theyear under review the economic crisis resultedin the fall of the exchange value of the zloty,which destroyed part of the gains of the year1924.

Finances of the Government.—The secondyear of the administration of the State finances,based on stable exchange, made it possible toappraise more accurately the foundations onwhich the public finances were established.


MAY, 1926 FEDERAL RESERVE BUiLLETIN 345

The putting into effect of the budgets of 1924and 1925 has shown that the currency reformwas carried through without adequate reservesand without regard to the needs of the nationaleconomy. The two budgets were made tobalance only by reducing expenditures, whichhad been voted, and by utilizing extraordinaryrevenues whioh had been secured during theexecution of the currency reform. Experiencehaving proved that the budget for 1926 wasout of line with actual conditions, a reduction ofexpenditure of about 25 per cent was decidedupon.

The budget for 1925 was almost balanced.Estimated expenditures were 2,165,900,000zlote, and estimated receipts were 2,157,500,000zlote. Actual expenditures were 90.9 per cent,and actual revenues were 85.8 per cent of theestimates. Thus the year 1925 actually endedwith an insignificant deficit but almost withoutany reserves for the year 1926, the principalsources of reserves, the issue of specie moneyand the right of borrowing from the Bank ofPoland, having been completely exhausted.

Receipts from taxes and monopolies in 1925,estimated at 1,466,000,000 zlote, yielded 1,333,-100,000 zlote—about 91 p e r c e n t . Thesereceipts for 1925, although they were largerthan in 1924, fall short of the estimates orremain at the same level, as the capital levyhas not come up to expectations.

Agriculture.—The economic crisis was es-pecially severe in agriculture during the firstsix months of the year. The chief causes weretwo—the lack of long-term credits and the poorharvests of the year before. The situation wasrelieved in the course of the year by the excel-lent grain harvests which were above the pre-war average.

As harvests throughout the world werereported as very good, the internationalmarket for grain was unfavorable both asregards price and demand. The abundance ofgrain offered by the exporting countrieslowered the price, while the importing countriespreferred to wait for the price to fall still lower.Agriculture, being unable to obtain credits,was forced to accept any price for its productswithout waiting until the market at home andabroad might take a turn for the better.A more exhaustive calculation of the worldharvest showed that the harvests of grain andthe quantity available for export had beenestimated too high in various countries. Thenfollowed an improvement of the situation onthe world market, which was reflected in a riseof prices and an increased number of outlets forexports. In Poland itself the change brought

about an improvement in price for wheat andflour and an increase in exports, all the morebecause the declining exchange operated asa domestic premium for the exporter.

Sugar production during the season 1924-25reached 78 per cent of pre-war, and was 28 percent higher than for the year before.. Sugarexports showed an increase of 33 per cent overthe preceding year.

Mines and industry.—In comparison with theyear 1924, which had been marked by a con-siderable decrease in production and by a pro-nounced increase in unemployment as the sequelof the period of inflation, the first part of theyear 1925 showed an improvement in manylines of production, with the exception of coaland iron.

In consequence of more favorable conditions,the increase of production was very considerablein the mining of potassium salts and the metalszinc and lead, which hitherto had not been ade-quately worked. Activity in steel forging andfoundry work has grown, in response to new out-lets on the domestic market and to the oppor-tunity of competing with foreign countries, dueto more perfect organization and consequentlarger output. The same thing has been truein regard to the production of petroleum. Onthe other hand, coal production has decreasedas a result of the general coal crisis in Europeand the difficulties with Germany over tariffquestions.

The textile industry, which employs morethan 30 per cent of the industrial workers,showed considerable improvement, as did alsochemical industries, paper, and public utilities.Leather and clothing industries declined de-cidedly as a result of foreign competition.Building activity did not come up to expecta-tions, nor did those metal and lumber industrieswhich depend upon building. In articles manu-factured for direct consumption there was littlechange.

The development of industrial and miningproduction could not reach great proportions,because buying power among the rural popula-tion has been reduced by the bad harvests of1924 and the lack of available funds. Thegreat difficulty in procuring credits has de-prived industry of revolving capital; thiscaused a falling off in production. Polish in-dustry, which had been gradually and pain-fully developing under very difficult circum-stances, found itself in the latter half of theyear face to face with a crisis even more men-acing because it had not yet recovered from theeffects of inflation. The falling off in produc-tion, the increase of unemployment, the reduc-


346 FEDEEAL. RESERVE BULLETIN MAY, 1926

tion of working hours, all growing out of thefinancial crisis, lowered the capacity of the do-mestic market which was suffering the effects ofthe bad harvests. Then followed a still morepronounced falling off in production.

Domestic commerce.—Uurrency reform,brought about solely by the aid of domesticcapital, revealed numerous weaknesses. Themost striking of these were the lack of revolvingfunds, the paucity of the sources of credit, thelessening of consumption, as well as the tooonerous tax burdens, both municipal andState.

At the beginning of the year the commercialsituation was much more favorable than thatof other phases of our economic life. The im-

Eorting of commodities from abroad, facilitatedy credits on very advantageous terms, in-

creased commercial activities. But from themoment that the Government established pro-tective duties to enable domestic products tomeet foreign competition on the domestic mar-ket, the general movement of commerce withother countries declined.

Foreign commerce and balance of trade.—Thetrade balance of Poland was unfavorable fromMarch, 1924, to September, 1925. Among thechief causes for this may be cited the poor har-vests of 1924, to which should be added the hardconditions of export and the free trade tenden-cies of our commercial policy. If we considerthe situation of the country from August, 1924,to August, 1925, that is, for the period betweenthe harvests of these two years, the deficit onour trade balance amounts to 646,700,000zlote. During that time Poland importedwheat and flour to the value of 220,600,000zlote, although in normal times she has a sur-plus of these commodities for export. The sit-uation was made still worse by the export of thetwo chief articles produced, coal and sugar, theprices of which were much lower in 1924-25than in 1923-24. The deficit in the trade bal-ance, brought about by importing grain andflour and by exporting coal and sugar underunfavorable conditions, rose to about 340,000,-000 zlote, and this exercised a decisive influenceon the rate of exchange. The free-trade prin-ciples of our tariff policy tended to lower pricesby the import of merchandise, especially bytariff concessions granted to certain commodi-ties for public utility. Experience has shownthat this policy requires too much time toachieve the desired results, and that it actu-ally brings about some disturbing effects:

(1) Prices do not decline because commodi-ties from abroad conform to prices on the do-

mestic market. The difference in the pricesbecomes a premium for the importer.

(2) Sales of merchandise of national originfall off on the domestic market, while costs ofproduction rise and make competition with for-eign goods difficult.

(3) The stock of foreign exchange and of for-eign money at the Bank of Poland declines;this directly influences the fall of our exchanges.

The law of May 19, 1925, outlined a newcommercial policy, and brought importantchanges in the application of the customstariffs of the year 1924. These modificationsincreased the customs duties on a great numberof articles of consumption and luxury articlesand protected certain branches of the agri-cultural industry. From that moment tradepolicy entered upon a new path—a policy ofmoderate protection, and the regulation, tem-porary at first and then permanent, of importsof luxury articles. This measure was neces-sary for the general economic situation in orderto escape the bad effects of our free-tradepolicy, and also on account of the lack of avail-able capital. Considering the insignificantsupply of credits from abroad, this measurewas likewise advisable, for it put an end to theoutflow of foreign exchange bills from the Bankof Poland and assured their return through themedium of export payments.

The favorable trade balance shown sinceSeptember makes it possible to predict afavorable balance for the first three months of1926. The increase in exports is due princi-pally to four factors, which, however, do notexercise a constant influence.

(1) The good harvests make it possible forthe country to export grain instead of importingit, as has been the case up till now.

(2) The regulation of the imports of certaincommodities had no influence until the begin-ning of autumn, for goods ordered before thepublication of the new decree were beingdelivered in the meantime.

(3) The fall of the exchange acted, on theone hand, like a high protective tariff whichimpeded imports, and, on the other, like anexport premium which facilitated the quotationof prices on commodities exported.

(4) The scarcity of credit, the burdens oftaxation, and the lack of liquid funds com-pelled industries to release their stocks of com-modities on the market at prices lower thanreplacement costs.

Poland has concluded 21 commercial treatiesor conventions up to the present time. By theend of 1924 she had made commercial treaties


, 1926 FEDERAL • RESERVE BULLETIN 347

with. 16 countries; and, during 1925, with theUnited States (a modus vivendi), with Persia,Hungary, Greece6, and Czechoslovakia. Someof these agreements, for example that withCzechoslovakia, have not yet been ratified.Conversations with Germany have been begun.The delay in concluding this treaty has been asource of economic difficulties for both con-tracting parties. On the other hand, it hasbeen profitable for Poland in certain respects,for, in order to compensate for the absence ofexports to Germany, it has been necessary toform new and direct relations with variouscountries; and the difficulty of finding newmarkets has compelled industry and commerceto perfect their technique and their organiza-tion; this delay will enlarge the demand fordomestic commodities to supply the needs ofthe country.

The balance of payments.—The influence ofthe trade balance on the balance of paymentsand debts was more clearly realized in Polandthan in other countries because of our rela-tively unimportant economic contacts withforeign countries, apart from the trade in com-modities. The tourist business, the reciprocal•economic services; and the movement of-capital sums have but slight importance inPoland. That is why the unfavorable tradebalance is directly reflected in the country'sbalance of payments. If, in spite of a favor-able balance since September and a progressiveimprovement, the balance of payments inrecent months has shown a deficit, it is be-cause the settlements of import and exportcontracts are made only after some delay. As& result of the granting of credit facilities byforeign* countries and the dearth of credit onthe domestic market, as well as the voluntaryor forced extension of the loan periods, the threemonth credits, which have been most fre-quently employed, have been renewed. Thefavorable trade balance of the last four monthsof 1925 will not have any influence on thebalance of payments until some time during1926.

The influx of capital from abroad affordedonly a slight assistance in the balance of pay-ments during the past year. Aside fromGovernment borrowing abroad the countryreceived no help frcSm adequate loans. Theshort-term loans floated abroad in considerablenumbers have seriously aggravated the crisisduring the second part of the year because oftheir early maturity and of the weakness ofthe exchange.

The money market.—The total quantity ofmoney in circulation has generally remained

at about the same level during the course of theyear. The circulation of the notes of theBank of Poland, which is included in the totalamount, has, however, fluctuated very de-cidedly. The ratio between the subsidiarycoin and paper currency issued by the treasuryand the note circulation of the bank was 22.3per cent at the beginning of the year; rose to48.5 per cent at the end of June, and to 113.7at the end of December. This state of affairsmade it difficult to support the course of theexchange, but at the same time it lessened theburdensome consequences of the deflationof the bank notes. The fluctuations in thecirculation were justified neither by thevariations in the prices of commodities nor bythe movements of the various economicoperations. The price index during the firstsix months of the year varied between 118and 121.6; then rose to 127.2 in September, to136.5 in November, and 154.8 at the end of theyear. During the last six months the rise inwholesale prices caused by the decline in theexchange tended to necessitate an increasein the circulation. On the other hand, thedepression resulting from the industrial crisismade the demand for currency less pressing.

The total quantity of money in circulation,which averaged somewhat more th&n 700million zlote during the year, was certainly in-adequate. In the territories which are nowpart of Poland, the total circulation of notesand specie before the war was about 1,500million zlote. One can not, however, concludefrom this that the lack of currency has beenthe chief cause of the difficulties prevailingthroughout our economic life during the pastyear; the real cause of the disquieting situa-tion is rather to be found in the dearth ofnormal credit.

Deposits of all kinds in Poland exceeded3 billion zlote at the end of the year 1913.In July, at the best period of the year 1925,they rose to 643 millions; that is, about 20per cent of the pre-war amount, although themoney in circulation is about 40 per cent ofpre-war. The rebuilding of capital has beeninsignificant in comparison with the pre-warsituation, but by comparison with, the inflationperiod it has shown a certain improvement;this, however, was only temporary, in view ofthe new changes whicn appeared toward theend of the year 1925.

The heavy pressure of demands for creditput upon the banks by industry and com-merce, as well as the high discount rates, ledthe banks to adopt a liberal credit policy and,in fact, to permit a considerable lowering of



their cash reserves. The consequent shortageof reserves in the banks in the course of theyear was one of the principal causes of thebanking crisis which in August affected theeconomic life of the country. The constantdecline in the stock of foreign bills and offoreign money in the Bank of JPoland, used tocover the deficit in the balance of payments,made it necessary to restrict discounting. Asa consequence of this restriction and theweakening of the exchange, deposits were with-drawn from the banks. Several banks havingonly small reserves found themselves in adifficult position. On account of the lack ofliquid funds they were unable even to pay out

MILLIONS OF 2L0TY900

800

700

600

500

400

300

200

100

MILLIONS OF ZL0TY900

800

700

600

500

400

300

200

too

1925 1926

the deposits which were demanded, or wereable to pay them only in part. Since October,with the assistance of the Government, someimprovement in the general situation is to benoted.

Liquid funds were too small to meet even themost indispensable needs for credit. In all thedomains of our economic life, without exceptionthe necessity is apparent of bringing in foreigncapital, not only working capital but, still moreimportant, long-term credits for the develop-ment of many enterprises. The influx of for-eign capital was wholly inadequate during thepast year. The Government as well as the pri-vate banks and a great number of industrialand commercial enterprises have floated loans

abroad, but in amounts which were not suffi-cient to meet the most pressing needs and toreduce the high cost of borrawing. All thingsconsidered, foreign credits have played but aninsignificant part. After the break in the ex-change they were called in and, in fact, madethe crisis worse.

Under these conditions credits were of coursevery dear. The market rate of discount wasalways much above the official rate of the Bankof Poland. After the conversations withAmerica in regard to a Government loan of$50,000,000 had taken a favorable turn inFebruary, the rate declined, but the financialcrisis in August brought about a new and veryconsiderable rise in the private discount rate.The legal interest rate, including commissionand costs, could not exceed 24 per cent, ac-cording to the Presidential decree of June 29,1924. But, on account of the difficulties ofgetting credit, borrowers often agreed to ahigher rate.

The money market showed two distinctmovements during the course of the year.During the first six months sayings accountsbecame larger, the circulation increased, andinterest rates declined. During the last sixmonths a contrary movement took place.

Exchange movements.—The Bank of Poland,when it began to function, assumed no obliga-tion to exchange its notes for gold. I t estab-lished the dollar as the basis of stability for thezloty, and decided to purchase bills on NewYork freely at the rate of 5.18 zlote to thedollar, thus assuring the absolute stability ofthe rate of exchange. The conditions underwhich currency reform had taken place imme-diately after the inflation period necessitateda stable rate of exchange in order to bring outforeign securities which had been hoarded inthe country and to safeguard savings. Thispolicy was maintained without effort during1924, but in 1925 it became more difficultevery day. Under the pressure of an unfavor-able balance of payments the supply of foreigncurrency and foreign bills in the Bank ofPoland decreased rapidly, and fell from254,100,000 zlote at the beginning of the yearto 72,800,000 by the end of July, in spite of thefact that about this time there was realizedsome 123,000,000 zlote from the Governmentloan floated in America which constituted anextraordinary replenishment in the portfolioof foreign bills. At the same time the metalliccover for note circulation fell from 64.9 percent to 42.1 per cent. Inasmuch as availablefunds in foreign currency were not even suffi-cient to meet the foreign obligations which had


MAY, 1926 FEDERAL. RESERVE BULLETIN 349

been incurred, the bank had to restrict the saleof its foreign exchange bills, which wereobviously declining. This action brought onthe fall of the zloty and fluctuations in the rateof exchange arising out of the relation betweensupply and demand.

Purchasers who were unable to obtain for-eign exchange at the Bank of Poland tried toget it in the domestic private market and inmarkets abroad, where they offered for salegreat quantities of zlote. In view of theweakness of the zloty and the precarious con-dition of the Polish banks, banking housesabroad threw their stocks of zlote on themarket and ceased to renew their short-termcredits with the banks. Such was the situationin the second half of the year.

The credit facilities granted at the beginningof the year had to be curtailed in proportion tothe decline in the metallic reserves. Thebank was also obliged to decrease its note cir-culation in conformity with the condition of itsgold reserve and its supply of foreign exchangeBills and foreign currency. The decline of thecirculation (from 550,900,000 zlote at thebeginning of the year to 381,400,000 zlote at theclose of the year) was brought about partly bythe sale of foreign exchange and foreign currencyand partly by the decline in credit operations.

Apart from raising the discount rate, anact which loses its force unless the differencebetween the official and the private rate istrifling, deflation and intervention necessarilybecame the means of defense for the bank. Innormal times deflation has a favorable in-fluence on the balance of. payments, the courseof the exchanges, and the price index. In theexisting condition of the country deflationbrought about no important results, becausethe influence of the bank on the money marketwas lessened by excessive issues of paper cur-rency put out by the Government. The de-cline in the supply of foreign exchange and for-eign currency obliged the Government and thebank to float special "intervention credits77

abroad. This made it possible to keep thecourse of the exchange during October and forthe first 10 days of November at a level ofabout 15 per cent below parity. After thecredits had been used up in November andduring the first half of December, the situationbecaiiie worse. At the same time the new lawsrestricting still further the trading in foreignbills came into force, and further demands uponthe bank were largely held in check.

Credit policies.—The credit policy of thebank during the past year has been very dif-

ficult on account of the disparity between thedemands for accommodation and the avail-able means of the bank. Theoretically, loansgranted by the bank of issue are in the natureof reserve credits for the benefit of the eco-nomic welfare of the country; in this countrydiscounting with the Bank of Poland becamethe chief source of credit, and, in fact the onlysource during the second half of the year, as aconsequence of the limited functioning of theprivate banks. The bank tried to meet thedemands for credit up to the limit of itsmeans; at the same time it had to consideralways the maintenance of the metallic re-serve at its legal percentage.

The bank has not been able to satisfy alldemands for credit, especially during the secondhalf of the year, when credit difficulties werefelt in every part of our economic life. Creditsgranted were almost never drawn upon to theirfull amount. In normal times this phenome-non would have been evidence of the reservecharacter of credits at the bank of issue. Butif, on the other hand, we consider the suspen-sion of lending by the private banks, and therestricted choice among the securities offeredfor rediscount, we see that this was merely aresult of the unsatisfactory condition of thecountry's economic life. The bill portfolioof the bank felt the effects of this. All thefactories have suffered from the lack of credits,especially long-term loans intended for develop-ment work. In the absence of long-term loans,their place was taken by short-term credits,particularly bills for three months and thenrenewable. Even the strongest enterpriseshave suffered from this, and the fall in the priceof their securities has lowered the value ofthe portfolio of the bank.

Discount rate.—In order to aid exports theBank of Poland made a practice of granting:certain privileges and agreeing to especiallyfavorable conditions for credits on bills acceptedby banking houses abroad; that is, at a rate from1 to 2 per cent higher than the rate of the coun-try where the bill was payable. On August12 the bank was obliged to raise the officialrate from 10 per cent to 12 per cent, and therate for advances on securities from 12 percent to 14 per cent. This measure did notbring about the desired result in view of thedisparity between the official and the privaterate; nevertheless it had to be used to supportthe rate of exchange. The bank insisted thatthe discount rate of the private banks shouldnot be more than twice as high as the officialdiscount rate.


350 FEDERAL RESERVE BULLETIN , 192®

FINANCIAL STATISTICS FOR PRINCIPAL FOREIGN COUNTRIES[Bank figures are for the last report date of month, except for London clearing banks, which are daily averages]

GERMANY[Millions of reichsmarks]

ENGLAND[Millions of pounds sterling]

Bank of England:Issue department—

Gold coin and bullionNotes issued _

Banking department—Gold and silver coinBank notes __Government securitiesOther securitiesPublic deposits ____Other depositsRatio of gold and note re-

serve to deposit liabilities(per cent)

Bank notes in circulation1

Currency notes and certificates __Nine London clearing banks:

Money at call and short notice. . .Discounts and advances .__Investments . . .Total deposits _

Total clearingsGovernment floating debt:

Total _.Treasury bills....Temporary advances

Index of security prices (December,1921=100) (per cent) __

Index number of foreign exchangevalue of the pound sterling (percent) 2 _

1926

March

145165

12237873594

18.587

295

1101,064

2471,5883,491

704565139

116.0

100.0

Febru-ary

143

122387916

106

18.985

284

1101,073

2551,6063,140

729582147

117.6

100.0

Janu-ary

143163

121467423

101

18.185

286

1131,088

2621,637

785639146

117.5

1925

March

127147

222397715

106

19.897

284

1081,043

2831,6053,453

742576167

116.9

1 Notes issued, less amounts held in banking department and in cur-rency note account.

2 New series.FRANCE

[Millions of francs]

Bank of France:G;old reserve l : .Silver reserveWar advances to the Government.Note circulation ___Total deposits

Three commercial banks:Demand deposits..B i l l s . . . .Other loans _

Clearings, daily average of Parisbanks

Price of 3 per cent perpetual rents

3,684331

35,00051,4922,834

1,75847.02

3,684329

34, 50050,9913,013

20,162

1,57449.00

3,684325

34,20050,6183,188

19,98014,1444,831

1,55449.15

21,80040,892

2,052

14,83710,4834,278

1,12246.85

i Not including gold held abroad.

CANADA[Millions of dollars]

Chartered banks:Gold coin and bullion *'Current loans and discounts......Money at call and short notice._.Public and railway securitiesNote circulation.Individual deposits

Gold reserve against Dominion notesDominion note circulationBank clearings2

Bank debits2 ,

Febru-ary

Janu-ary

611,123396564164

2,166121197

1,2422,132

621,123377563161

2,168127214

1,3312,368

1925

December

691,142

394550174

2,270135227

1,8983,121

Febru-ary

521,131

330570158

2,136125218

1,1101,915

i Not including gold held abroad. 2 Total for month,

Reichsbank:Gold at homeGold abroadReserves in foreign exchangeBills of exchange and checksMiscellaneous assets'Deposits

Reichsmarks in circulation -Rentenmarks in circulationReichsbank clearings LSix Berlin banks:1

CashB i l l s . . . . . __..r.Due'from other banks.Miscellaneous loans-L_—Deposits.. I

Index of security prices (Jan. 2,1925=100) (per cent). . . L —

Capital issues . . .I

1926

March

1,228263481

1,216923625

3,1601,5734,411

81.40

Febru-ary

1,192190461

1,346783586

2,8221,587

1091,243

6312,4004,530

72.6120

Janu-ary

1,112143418

1,464609•579

2,6491,5894,177

71.6220

1925

March

798205334

1,57&1,217

7432,3151,9114,095

97.6031

1 Bimonthly statements.

ITALY

[Millions of lire]

Banks of issue:Gold reserve1 iTotal reserve—. 1Loans and discounts JNote circulation for commerce.—.Note circulation for the StateTotal deposits...* 1

Leading private banks: ICash.. iLoans and discounts.]Due from correspondentsParticipations iTotal deposits i

State note issue J— LIndex of security prices (per cent)

1926

Febru-ary

1,1341,99810,20511,1317,0662,278

2,100194

Janu-ary

1,1342,0169,62211,5857,0652,302

2,100205

1925

Decem-ber

1,1342,04110,47712,2877,0632,466

1,0499,0994,150

54413,0242,100

216

Febru-ary

1,1321,7947,91910,3267,1452,817

9559,0374,281411

13,4652,400297

i Not including gold hejd abroad.

JAPAN

[Millions of yen]

Bank of Japan: IGold at home and abroadAdvances and discounts...Advances on foreign bills

Notes issued LTotal deposits L . . . .

Total note and deposit liabilities..Tokyo banks:

Cash on hand__ LTotal loans LTotal deposits... LTotal clearings L

1926

March

1,05729999

1,181796

1,977

1122,4451,9363,295

Febru-ary

1,057330147

1,293769

2,062

1162,4491,9593,246

Janu-ary

1,057374.172

1,388713

2,101

1272,4161,9222,743

1925

March

1,05945951

1,219929

2,148

1352,3921,8962,843


MAY, 1926 FEDERAL HESEEVE BULLETIN* 351

CONDITION OF CENTRAL BANKS IN OTHER COUNTRIES

1926

March Febru-ary

Janu-ary

1925

March

1926

March Febru-ary

Janu-ary

1925

March

Austrian National Bank (millionsof schillings):

Gold. —-___-_- .„_—_-Foreign bills......_..Domestic billsTreasury bills

Total principal earning assets....Notes ._____.Deposits

Total note and deposit liabilities.National Bank of Belgium (mil-

lions of francs):Gold.... _

Foreign bills and balancesabroad..... __

Domestic billsLoans to State.Notes.Deposits...

Total notes and deposits....National Bank of Bulgaria (mil-

lions of leva):Gold..

Foreign bills, etcDomestic loans and discounts-Advances to State

Total principal earning assetsNotes * __:Deposits

Total notes and depositsBanking Office, Czechoslovakia

(millions of Czechoslovak crowns):Gold and silver... ,Balances abroad and foreign cur-

rencyBills discountedAdvances on collateral _.Note circulationDeposits... _.

Bank of Danzig (millions of Dan-zig gulden):

Balances with Bank of England-Foreign bills, etc.. . . .Loans and discounts „__

Total principal earning assetsNotes ...Deposits...

Total mote and deposit liabilities.National Bank of Denmark

(millions of kroner):Gold

Foreign bills, etcLoans and discountsAdvances to State...

Total principal earning assetsNotes...Deposits ___

Total note and deposit liabilities.Bank of Finland (millions of Finn-

ish marks):GoldBalances abroad and foreign

creditsForeign billsDomestic bills..State debts.Note circulation.. __.Demand liabilities _ _Total notes and demand liabilities

National Bank of Greece (millionsof drachma):

Gold and balances abroadGovernment loans and securities-Discounts and loansNote circulationTotal depositsTotal note and deposit liabilities.

155509218382581626842

274

301,3065,2007,495373

7,868

42429

1,2295,5507,2083,4662,8766,342

1,074

1,203597388

7,1471,039

209601301520541136447

332

1,18265551262

1,386582

1,968

1554111118683881228840

1552014418785182345

274

* 30984

5,2007,415162

7,577

274

301,1255,2007,462344

7,806

42441

1,2165,5007,1573,4102,9476,357

1,072

1,179544388

7,0741,070

1,071

1,180648465

7,2451,228

209781101520339942441

209701171620340340443

332

1,22780509262

1,350644

1,994

332

1,361104421262

1,292788

2,080

4,280 4,195

1149210521180879030820

272

301,3185,2007,458316

7,774

41328

1,2415,4977,0663,4602,7606,220

40838

1,2695,2217,3284,2782,0046,282

1,030

544822665

7,681584

209412423732045246498

4645470

1,384470

1,854

2,5363,8132,9695,2223,4928,714

National Bank of Hungary (mil-lions of pengos):

Gold ...Foreign bills, etcLoans and discountsAdvances to TreasuryOther assets..Note circulationDeposits __.Miscellaneous liabilities

Bank of Java (millions of florins):Gold _

Foreign bills _Loans and discounts

Total principal earning assetsNotes.__ _ ,Deposits

Total note and deposit liabilities.

Bank of Latvia (millions of lats):Gold..... „Foreign exchange reserveBillsLoansNote circulationGovernment deposits. _Other deposits

Bank of Lithuania (millions oflitas):

GoldForeign billsLoans and discounts

Total principal earning assetsNotes _Deposits _._

Total notes and deposits

Netherlands Bank (millions offlorins):

GoldForeign billsLoans and discounts

Total principal earning assetsNotesDeposits _


Bank of Norway (millions of kro-ner):

Gold...Foreign exchangeDomestic credits

Total principal earning assetsNotesDeposits..


Reserve Bank of Peru (millions oflibras):

Gold at home.....Gold abroadBillsNote circulation...Deposits

Bank of Poland (millions of zlote):Gold . . . . 1 .Foreign exchange, etc.Loans and discountsNote circulation.. ...___...Current accounts-

Private..,Treasury

Liabilities in foreign currency

85154139154263380189196

48869023113

42917720938582135856

14787296383350137487

4,010728

2,5156,375823

13449369389

79

76173149154275394207199

20320638433864402

24316551297850

303049798225107

43220320340681877

14790286376330148478

59194151156280405195213

20221658634556401

322950797925104

43824822046883396929

14760298338335111446

4,047759

2,5656,473752

4,050728

2,5066,425648

13460367377

62 64

13461361

54159121158287342204205

13418708827155

24425052308442

335740969431125

50413225538789843941

14751355406380108488

1110



CONDITION OF CENTRAL BANKS IN OTHER COUNTRIES—Continued

1926

March

9385134

1,80372

5688,173

17,01320,0948,439

14,7515,043

54,98072,409

78347

1,3232,9665,683

6166,299

Febru-ary

9368138

1,79970

5688,199

17,01319,9898,784

15,3344,981

54,11475,892

77353

1,3302,9665,718

5106,228

1925

Janu-ary

9344156

1,82078

5678,230

17,01319,8818,659

17,7234,967

51,75075,992

77353

1,3102,9665,783

5686,351

March

9274161

1,69867

5637,307

16,72419,0716,750

16,1886,828

33,92959,030

72340

1,2932,9665,594

5436,137

1926

March Febru-ary

1925

Janu-ary March

B a n k of Por tugal (millions of es-cudos):

GoldBalances abroadBills ..Note circulation _Deposits _ _. . - .

National B a n k of R u m a n i a (mil-lions of lei):

GoldBills.. -—_.-_,-_. .Government loans _Note circulation _Deposits

Sta te B a n k of Russia (note-issuingdepartment; thousands of cher-vontsi):

Gold—.. _Foreign currency..Loans and discountsBank notes „_

National B a n k of t h e Kingdomof Serbs, Croats, a n d Slovenes(millions of dinars):

GoldForeign bills, etc _: _._.Loans and discounts .Advances to State

Note circulation _Deposits ___.


S o u t h African Reserve B a n k(thousands of pounds sterling):

GoldForeign bills.Domestic bills

Total principal earning assets.„..Notes .__.Deposits


B a n k of Spain (millions of pesetas):Gold.. —Balances abroad. . . .Bills discountedNote circulation _-.Deposits

B a n k of Sweden (millions of kroner):Gold

Foreign bills, etcDomestic credits. . . .

Total principal earning assetsNotes _Deposits -,


Swiss National B a n k (millions offrancs):

Gold _Total principal earning assets

Notes .-_-_.Deposits ___


7,7515,4121,1036,5157,5266,177

13,703

2,53730703

4,3311,118

180312492527141668

418

70878

8,1165,5871,8257,4138,1946,12114,315

8,1646,1311,3147,4458,6096,01814,627

2,53729779

4,3731,295

2,53729801

4,4061,257

230183

475

163652

230202309511475208

42738577594

447375776103879

12,4403,948868

4,81611,0974,81915,916

2,53631930

4,3971,077

234137440577521238759

48136483670906

DISCOUNT RATES OF 31 CENTRAL BANKS[Prevailing rates, with date of last change]

Country

AustriaBelgiumBulgaria _-Czechoslo-

vakia . .DanzigDenmarkEngland...--.

Bate

10

685K5

In effectsince—

Mar. 31,1926Apr. 23,1926Aug. 31,1924

Jan. 13,1926Jan. 19,1926Sept. 8,1925Dec. 3,1925

Country

Esthonia _—FinlandFrance,.GermanyGreeceHungary. . . .IndiaItaly

Rate

10

f10767

In effectsince—

July 1,1925Oct. 29,1925July 9,1925Mar. 27,1926Aug. 18,1925Oct. 21,1925Dec. 3,1925June 18,1925

Country

JapanJ a v a . . .LatviaLithuaniaNetherlandsNorwayPeru.Poland

Hate

7.3687

612

In effectsince—

Apr. 15,1925May 3,1925Feb. 16,1924Feb. 1,1925Oct. 2,1925Apr. 20,1926Apr. 1,1923Aug. 12,1925

Country

Portugal. . . .Rumania...-RussiaSouth AfricaSpainSweden.. . . .Switzerland.Yugoslavia-

Rate

968

f4K3K6

In effectsince—

Sept. 12,1923Sept. 4,1920Apr. —, 1924Nov. 21,1924Mar. 23,1923Oct. 9,1925Oct. 22,1925June 23,1922

Changes during month.—Bank of Norway, from 6 to 5% per cent on April 20,1926; National Bank of Eelgium, from 7H to 7 per cent onApril 23,1926.


MAT/1926 FEDERAL RESERVE BUIiLETIN 353

FOREIGN TRADE OF PRINCIPAL COUNTRIES

UNITED STATES

[Thousands of dollars]

IMPOETS

By classes of commodities:Total....

Crude materials1...Foodstuffs, crude, and food

animalsManufactured foodstuffsSemimanufactures -Finished manufactures —

By countries:Total Europe

France _ _._..-GermanyItaly —United Kingdom

Total North America... -Canada.. _

Total South America...—.-.Argentina

Total Asia and OceaniaJapan

Total Africa

EXPORTS

By classes of commodities:Total....-...—.

Crude materials 1 . . . .Foodstuffs, crude, and food

animals ;Manufactured foodstuffsSemimanufactures _>_Finished manufacturesReexports.

By countries:Total Europe

France _Germany..Italy——United Kingdom... _.

Total North America. _Canada.- ._

Total South AmericaArgentina .

Total Asia and OceaniaJapan... _

Total Africa

1926

March

443,098

198,351

51,10240,15374> 69778,795

117,11914,45618,3838,957

37,12697,53640,38263,61312,677

153,23522,90111,595

374,420

83,031

15,59640,52653,520

172,2679,480

164,37324,00021,11612,26067,941

100,56762,44635,41311,87865,82622,3238,242

Febru-ary

388,503

174,020

42,11035,99872,84463, 531

105,31812, 08016,5486,77437,28187, 04737,64651,9559,412

132,61233,17711,571

352,917

89,317

12,17241,83747,917154,5767,098

171,96821,72422,16612,82375,83482,58845,97635,26510,88556,06318,9347,032

4,409,838

1,898,547

511,049419,192773,392811,113

1,253,551153,787178,760100,250412,441

12 months endedMarch—

1926

466,853543,80284,609

1,528,538

97,774

4,763,587

1,292,770

280,396547,619645,693

1,900,68897,252

2,396,552278,213394,465'172,7331975,363f

1,153,588677,328420,307151,418702,292228,51091,917

1925

3, 726,583

1,

452,327476,309677, 623768,235

1,139,910153,009142,36784,267

381,899959,425

491,46179,150

1,0,57,828347, 76177,960

4,761,047

1,419,924

430,428568,056626,750

1,624,70991,076

2,616,916294,397

459,076213,156

1,051,5381,104,426

616,224333,460126,155632,105227,14874,140

*Includes miscellaneous.

FOREIGN COUNTRIES

France (million francs):Imports— „.Exports

Germany (million gold marks):ImportsExports _

United Kingdom (thousand £sterling):

Imports . .Exports,, _____Reexports . . . .

Canada (thousand dollars):Imports . .Exports.

Japan (million yen):Imports •-_Exports

Denmark (millionkroner):Imports . .Exports ._

Czechoslovakia (million crowns):Imports . .Exports

Esthonia (million Es thon ianmarks):

Imports „Expor t s . . .

Finland (million finmarks):ImportsExports

Hungary (thousand gold crowns):Imports _.Exports. ,

I taly (million lire):ImportsExports __

Netherlands (million guilders):ImportsExports _ 1

Norway (ihillion kroner):Imports _Exports _

Poland (thousand zloty):, Imports — _

ExportsRussia (thousand rubles):

ImportsExports

Sweden (million kroner):ImportsExports

Switzerland (million francs):ImportsExports _ __.

Australia (thousand £ sterling):Imports _..Exports

Egypt (thousand Egyptianpounds):

Imports.._ . . .Exports

India (million rupees):Imports,Exports _

South Africa (thousand £ ster-ling):

Exports..

1926

March

5,0954,960

927

106,86466,40012,086

100,855113,966

284187

Febru-ary

5,2444,409

721788

96,84562,81413,221

70,709

160

1926

Febru-ary

134124

1,2801,475

593

273181

62,70250,293

2,2061,325

197130

8572

68,895L31,352

53,60043,180

78

200144

11,40416,178

4,162

180351

5,563

Janu-ary

147121

1,1171,179

702683

287197

53,30853,426

1,9541,119

205122

10677

159,130

61,00034,800

10776

201124

13,49514,636

4,6444,804

225353

5,9177,098

12 months endedMareh—

1926

48,97747,731

11,7049,313

1,293,220753,995151,519

927,3241,328,537

2,4742,320

1925

41,406

10,8937,269

1,330,578810,736140,848

796,9031,081,362

2,4651,934

12 months endedFebruary—

1926

1,9781,858

17,25618,417

9,5839,567

5,4665,486

735,500729,900

26,39418,190

2,4501,783

1,3511,005

1,475,3781,482,786J

774,401558,603

1,4321,342

2,6151,971

157,913152,260

57,80554,350

2,2363,935

69,24685,230

1925

2,4302,195

16,54317,992

8,287

4,6465,075

743,100586,500

20,58114,957

2,4031,695

1,5871,101

1,610,5581,266,986

1,4181,286

2,5322,047

145,787144,535

52,29566,127

2,4593,937

67,026



PRICE MOVEMENTS IN PRINCIPAL COUNTRIES

WHOLESALE PRICESALL COMMODITIES

[Pre-war-100]

Year and month

"1925JanuaryFebruaryMarchApril . . . .MayJuneJulyAugustSeptemberOctoberNovemberDecember

1926January...FebruaryMarchApril

Year and month

1925January...FebruaryMarchApril.MayJune ._JulyAugustSeptember..OctoberNovernb^rDecember

1926JanuaryFebruary.March«._April

Austria(goldbasis)

147146143139138141137131127127125125

122120119

Bel-gium

559551546538537552559567577575569565

560556583

Bul-garia

3,2753,3093,2723,2443,1773,2253,0412,8702,8342,8232,8222,913

2,9012,899

Czecho-slo-

vakia i

1,0451,0481,0341,020l,@06

9981,009

993996989977977

966950938

Europe—Continued

Russia1

172178183195197191188175173174175179

183190194196

Spain

191192193190191187188184185187186187

186183183

Sweden

169169168163162161161159157154155156

153152149

Switzer-land*

171171170166163162161160159159157157

156155151

Den-mark*

234234230220216216206189168163158160

157151145141

Eng-land

(Boardof

Trade)

171169166163159158158157156155154153

151149144

Fin-land

1,1371,1411,1311,1331,1221,1291,1181,1421,1331,1211,1181,120

1,0941,0911,081

North and South America

UnitedStates

(Bureauof Labor

Statis-tics)

160161161156155157160160160158158156

156155152

Canada

166165162157159159158160157157161164

164162160

Peru

199194206206200200198200205205204203

206205204204

Europe

France

Statis-tical

Bureau

514515514513520543557557556572606633

634636632

Aus-tralia

163163160158159163162162162163165170

161160163

Feder-al Re-serveBoard

456457463460467483490491482482498518

527540545

China(Shang-

hai)

160159160159158157163160160159158158

164163164163

Ger-many

(FederalStatis-tical

Bureau)

138137134131132134135132126124121122

120118118

Hun-

(goldbasis)

159152145144141141136134135131129130

127125123

Asia cud Oceania

DutchEast

Indies

178177179175174173175176175175174173

India(Cal-

cutta)

171172168169164157160157158160164163

163158155

Italy

658660659658660683707731721716712715

707704693

Japan(To-kyo)

213210204202199200198200201200198194

192188184

Nether-lands

160158155151151153155155155154154155

153150146

NewZealand

178175175175175174175175175176176176

175175

Nor-way

(Oslo)

279281276267260258254245231221217218

214211204

Poland

120121122119118119120124127128137155

142140144

Africa

(Cairo)

157161155154151150151151152153L45140

134134134

SouthAfrica

130

139

127

124

124

i First of month figures.The foreign index numbers of wholesale prices are cabled to the Federal Reserve Board by the various foreign statistical offices. Index numbers

of commodity groups for most of the countries are also available in the office of the Division of Research and Statistics of the Board, and maybehad upon request.

Wherever possible the indexes have been shifted from original bases to a 1913 base. Further information as to base periods, sources, numberof commodities, and period of the month to which the figures refer may be found on page 48 of the January, 1924, issue of the BULLETIN.


M A Y , 1926 FEDERAL EESERVE BULLETIN 355

GROUPS OF COMMODITIES

(Pre-war«100)

U N I T E D STATES—BUEEAU OF LABOR STATISTICS

Year and month

1925—March

October... .November «,December

2926—January... . . . . . . . . _FebruaryMarch. .

All com-modities

161

158158156156155152

Farmproducts

161

155154152152150144

Foods

159

158160157156153151

Clothingmaterials

191

190188187186184180

Fueland

lighting

174

172175175177179175

Metalsand

metalproducts

134

128130130129128128

Buildingmaterials

180

174176177178177176

Chemi-calsand

drugs

134

135135135133132132

Housefur-

nishings

170

168166166165164164

Miscel-laneous

125

138142138135133128

ENGLAND—BOARD OF T R A D E

Year and month

1925—March

October .NovemberDecember

1926—January .FebruaryMarch

All com-modities

166

155154153151149144

Totalfood

172

164165167162159151

Cereals

173

148152158154148144

Meatandfish

158

167167173165156151

Otherfoods

183

176175169167170156

Totalnotfood

163

150148146146144141

Ironandsteel

133

120119118119118118

Otherminerals

andmetals

136

131130131131131130

Cotton

236

194182175175174165

Othertextiles

200

181181178176172168

Otherarticles

160

158158156153149147

FRANCE—STATISTICAL BUREAU

Year and month

1925—March.. fc „.

October _November . . .December . _

1926—January. .FebruaryMarch , .

All com-modities

514

572606633634636632

Allfoods

459

491510538543546548

Animalfoods

451

485496535532536537

Vegeta-ble

foods

470

496522537544541546

Sugar,coffee,cocoa

441

480502529548567565

All in-dustrialmaterial

558

637682709707708700

Minerals

454

585606622627646645

Textiles

768

830928953941925914

Sundries

520

578611647645643631

GERMANY—FEDERAL STATISTICAL BUREAU

Year and month All com-YVft S\S? "1 4*1 Aflmouii/ies

134

124121122120118118

Totalfood

products

132

118115116115112113

Grainsand

potatoes

125

10399

103101

9899

Fats,sugar,meat,andfish

137

146142137134134134

Colonialgoods,coffee,cocoa,etc.

182

181181183185183180

Total in-dustrialproducts

139

134133131130130128

Hidesand

leathers

131

123120118113110107

Textiles

207

192188182176172186

Metalsand

minerals

133

131130128128127126

Coalandiron

1925—March.....

October...November.December.

1926—January...February..March..*..

123

12012©123120120120


356 FEDEEAL RESERVE BULLETIN MAT, 192$

RETAIL FOOD PRICES AND COST OF LIVING

RETAIL FOOD PRICES

[Pre-war-100]

1925JanFeb . . .Mar—Apr..-May...JuneJuly—Aug.—Sept—Oct.-N o v . -D e c . . .

1926Jas .Feb . .MarApr ,

UnitedStates

(51cities)

151148148143149152157157156158184162

161158157

European countries

Austria(Vienna)^

27,16827,06526,7&626,44827,03727,03128.55025,73925,29425,18625,10825,373

Bel-gium *

140137134127122127130135140141146148

141141137

Bul-garia

3,1313,1633,1283,1003,0323,0832,9062,7442,7102,6982,6982,785

2,7732,771

Eng-land*

178176176170167166167168170172172174

171168165159

France(Paris)

403410415409418422421423431433444463

480495497

Ger-many

137145146144141146154154153151147146

143139138142

Greecet A i\\ens)

1,5061,5101,5621,4781,4431,5161,6151,5111,5441,5971,6761,718

Italy

lan)

590610624620599599602621643646649660

681676654

Neth-er-

lands

156157157155154152152152152149149148

148147147

Nor-way

277283284276265261 '260254241228223221

216212205

Rus-sia*

205203211217221219218210208215217224

226230234241

Swit-zer-

land*

172172171169168169169169170168168167

165163161

Other countries

Can-ada*

145147145142141141141146146147151156

157155154

Aus-tralia

148149151152154155156156156157156155

155154159

India(Bom*bay)

152152155153151149152147146148149151

151150151

, 150

NewZea-land

147146149149150149151152153155156154

154153

SouthAfrica

120126121124123122120

m11811911711©

116117118

COST OF LIVING

[Pre-war=100]

1925JanFeb.M a r . .

M a y "June . .JulyAugSept . .O c t . . .N o v . .Dec—

1926JanFebMarApr

Mas-sa-

chu-setts

158157158158158159160161161162162165

164163161

European countries

Bel-gium

521517511506502505509517525533534534

527526521529

Czech-oslo-

vakia

899911904901894914916894884875863866

854845832

Eng-land '

180179179175173172173173174176176177

175173172168

Es-tho-nia

113110114112111112114112110108107109

110110

Fin-land

1,1991,1911,2101,2011,1761,1911,2181,2661,2421,2281,2271,197

1,1661,1751,171

France(Paris)

386

390

401

421

Ger-many

124136136137136138143145145144141141

140139141140

Greece(Ath-ens)

1,4171,4201,4491,4191,4081,4481,4721,4841,6031,5471,6101,644

1,6731,6641,706

Hun-gary

141135132130131130126127126124123123

122121119

Italy(Mi-lan)

680592602600591596598610624643643649

665661647

Neth-er-

lands

179

179

179

"~i77~

174

Nor-way

271

259

248

— / . .234

225

Po-land

145146147146143144146149149152157173

170171169

Spain

188189192191188190190190190189186183

188183185

Swe-den

178

177

176

175

174

173

Swit-zer-

land*

173172172170170170170170170168168163

167165163

Other countries

Can-ada «

149150148147146146146148148149152154

155154154

Aus-tra-lia

150

153

154

"IBB"

India(Bom-bay)

157157159158156154157152151153153155

155154155153

SouthAfrica

133133133134134134133i n n

132132131131

131131131

* January, 1921»100.U921-100.

»First of the month figures.«Revised index.

NOTE.—Information as to the number of foods and items included, the original base periods, and sources may be found on page 276 ofthe April, 1925, issue of the BULLETIN. The original bases of the indexes have been shifted to July, 1914, wherever possible.,


MAT, 192S FEDERAL RESERVE BULLETIN 357

BANKING AND FINANCIAL STATISTICSFEDERAL RESERVE BANKS

AVERAGE DAILY CONDITION FOR MARCH AND FEBRUARY, 1926

[Amounts in thousands of dollars]

Federal reserve bank

Total bills and securi-ties

March February

Total cash reserves

March February

Total deposits

March February

Federal reserve notesin circulation

March February

Reserve percentages

March February

Boston ._New York . .PhiladelphiaCleveland „RichmondAtlantaChicago-St. LouisMinneapolis. __._Kansas CityDallasSan Francisco.__

Total: 1926.1925.1924.1923.1922.1921.1920

85,343274,92899,405

108,60459,64572,818

151,35463.66831,07963.66949,148

116,778

108,148297,33098,38591,99853,74674,795

144,34162,13430,88766,67852,94894,938

234,001993,348207,561

95,386175,353361,92363,763:96,37092,10661,773

253,692

207,586957,503209,059313,020103,989173,667367,040

93,19192,29759,760

282,124

148,287862,833134,749181,20870,07384,476

330,48484,56157,58089,57463,315

169,584

148,884855,864134,093181,33072,22785,237

328,52285,65854,27491,85964,244

172,536

155,444373,257148,126203,09477,995

161,578164,16037,03864,39564,37438,006

185,949

153,527369,155149,403203,22679,436

160,402162,60637,30964,70166,29039,977

189,554

1,176,4391,078,855

951,7741,178,9191,191,0132,735,7843,211,936

1,176,3281,050,323

921,5881,152,8621,215,2212,869,2333,154,054

2,933,8853,000,2523,222,8773,190,6253,095,7622,403,4702,058,293

2,925,5293,041,9133,239,2823,208,6823,070,0452,343,5372,053,422

2,276,7242,193,4731,991,0661,960,5401,794,8951,808,5292,032,787

2,274,7282,233,5311,954,4791,969,7571,814,4461,804,4762,002,503

1,673,4161,731,2232,013,5152,253,1892,195,1312,979,4863,040,440

1,675,5861,714,9292,034,5402,244,7332,176,5293,068,5782,946,863

77.080.473.477.764.471.373.252.479.059.861.071.4

74.376.480.575.777.650.2

142.7

78.273.781.468.670.774.753.978.358.457.377.9

74.177.081.276.176.9

U9.6143.3

i Calculated on basis of net deposits and Federal reserve notes in circulation.

FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS

RESOURCES


Total Boston NewYork

Phila-delphia

Cleve-land

Rich-mond Atlanta Chi-

cagoSt.

LouisMinne-apolis

KansasCity Dallas

SanFran-cisco

Gold with Federal reserveagents:

Mar. 24 . . .Mar. 31Apr. 7Apr. 1 4 . . . . .Apr. 21._—_ . . . .

Gold redemption fund withU. S. Treasury:

Mar. 24.—Mar. 31Apr. 7 . - . -Apr. 14..Apr. 2 1 . . . .

•Gold held exclusively againstFederal reserve notes:

Mar. 24..Mar. 31Apr. 7. ,Apr. 14Apr. 21 . .

Gold settlement fund withFederal Reserve Board:

Mar. 24. . . . .Mar. 31. .Apr. 7Apr. 1 4 . . . . . . ,Apr. 21. . . .

«Gold and gold certificates heldby banks:Mar. 24........Mar. 31..... ....Apr. 7......Apr. 14...Apr. 21.....

1,404,3071,361,7231,384,5311,385,4301,498,448

58,08649,73047,74152,81553,429

121,224

100,280120,497117,913

8,3319,9677,7776,7338,627

344,113344,020344,020288,898453,808

13,01411,5329,96813,63112,784

117,037116,464119,917122,427123,800

13,6165,8657,5029,25610,655

190,782170,427171,115172,192172,069

2,7181,8251,9911,4922,407

48,61147,15145,99650,53139,114

2,0642,4842,6342,0652,508

122,928122,016128,543175,689159,066

2,9973,1323,8383,1653,093

129,389129,389129,367129,330129,298

5,5424,4803,4797,3416,365

14,11014,09217,09016,83815,197

1,5111,8591,223878434

61,83762,72662,03451,96948,315

9541,179.1,5821,3391,734

50,01449,32348,37947,63545,008

2,4532,7833,3773,6321,878

27,91828,23127,40727,35825,216

1,3961,5331,7581,0391,151

176,344179,056190,383182,066169,644

3,4903,0912,6122,2441,793

1,411,4531,432,2721,438,2451,551,877

713,203750,959730,247715,880617,881

618,885604,461620,827627,663

129,555108,795108,057127,230126,540

35,90155,84861,58442,08853,070

42,18839,68436,891

357,127355,552

35,530

302,529466,592

295,730318,650253,054296,155206,755

342,393332,122351,112358,103351,910

130,653122,329127,419131,683134,455

39,51665,95161,83162,30045,344

26,04422,47122,59520,87322,805

193,500172,252173,106173,684174,476

32,87855,32854,992

50,67549,635

53,317

50,36051,16551,74348,47749,608

52,59641,622

33,70733,20233,96419,97023,488

4,7875,0815,6366,2746,678

125,925125,148132,381178,854162,159

31,06932,05029,00821,27422,144

3,7423,8344,3173,6214,063

134,931133,869132,846136,671135,663

135,37886,404137,199125,374133,538

68,285

69,12172,32772,378

15,62115,95118,31317,71615,631

8,3815,10217,22411,2288,318

19,31617,95717,83618,10019,299

62,79163,90563,61653,30850,049

27,12220,02319,81715,61814,423

7,7,1766,7737,0947,198

52,46752,10651,75651,267

28,47928,61527,60325,90621,880

5,8765,9245,2066,1006,515

29,31429,76429,16528,39726,367

20,74416,59614,81212,69911,889

10,28610,34310,36710,45010,472

179,834182,147192,995184,310171,437

24,29833,19019,15926,57023,715

38,51039,03939,230

39,613



FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued

RESOURCES—Continued



Phila-delphin

Cleve-land

Rich-mond Atlanta -Chi-

cagoSt.

LouisMinne-apolis

KansasCity Dallas

SanFran-cisco

Total gold reserves:Mar. 24Mar. 31Apr. 7__ - ...Apr. 14_____Apr. 21 •

Reserves other than gold:Mar. 24Mar. 31 ___Apr. 7 _Apr. 14...Apr. 21

Total reserves:Mar. 24Mar. 31Apr. 7. . . .Apr. 14Apr. 21....__

Nonreserve cash:Mar. 24Mar. 31Apr. 7Apr. 14Apr. 21. . . . _.

Bills discounted:Secured by U. S. Govern-

ment obligations—Mar. 24....Mar. 31...Apr. 7Apr. 14Apr. 21

Other bills discounted—Mar. 24 . . . . .Mar. 31Apr. 7.-—..Apr. 14Apr. 21

Total bills discounted:Mar. 24Mar. 31Apr. 7Apr. 14Apr. 21 -

Bills bought in open market:Mar. 24.Mar. 31Apr. 7. .Apr. 14—Apr. 21

U. S. Government securities:Bonds—

Mar. 24....Mar. 31.Apr. 7..

. Apr. 14—..Apr. 21 —— .

Treasury notes-Mar. 24Mar. 31..— . .Apr. 7Apr. 14

...,.• Apr 21Certificates of indebted-ness—Mar. 24.Mar. 31Apr. 7..Apr. 14.Apr. 21..

Total U.S. Government securi-ties: .

Mar. 24..Mar. 31. .._._._._,Apr. 7 iApr.l4.____Apr. 21..

Other securities:Max. 24Mar. 31—.. . — —Apr. 7-...........-.—.Apr. 14 -.-__—._;Apr. 21

2,794,4812,766,8732, 783,3462,781,7882,795,227

155,295152,973150,305157,017155,243

207, 644204,327206,532206,209215,140

18,67418,20519,06020,62920,394

995,2501,006,324958,154956, 787

1,025,257

43,82643,67542, 87845,07342,351

196,213210,751211,845214,856202,604

4,6373,8244,8444,4596,311

276,738278,745279,841278,859276,801

7,1868,1356,9357,0376,549

89,16987,91888,23078,84071,788

8,7688,3448,3548,5018,342

160,736161,032165,706203,749188,366

9,4258,1777,7899,187

338,594289,938339,166334,372341,579

21,68420,08119, 111

19,508

43,31839,01053,37347,04443,248

20,24520,77219,74820,21919,937

97,01191,10490,20676,02071,670

2,9013,0123,1143,2092,948

86,822

84,56583,27375,281

5,0054,9854,7064,9324, 537

60,34456,70354,34451,54648,728

5,8275,7745,9655,8285,638

242,642254,376251,384250,233234,765

7,1177,9897,8018,4558,259

2,949,7762,919,8462,933,651

226,318222, 532225, 592

2,950,470

66,10262,07861,484

60,768

340,564311,487290,169334,735208,834

276,983320,904

242, 549240,836

235,534

5,1484,9324,9174,5893,482

15,41620,19015,55213,97710, 568

28,36522,58019,81017,12613,357

1,039,0761,049,9991,001,0321,001,8601,067,608

24,78922,91022,26421,09519,596

110,651100,987106,406160,62737,475

37,01548,73848, 77828,34223,753

200,850214,575

219,315208,915

1/1,6771,8002,0532,075

44,90536,71833,94528,08829,743

21,67724, 65820, 90119,19919,101

286,880286,776285,896283,350

2,8463,9413,0963,3473,285

44,10744,43939, 65344,49532,039

24,08519, 74420,11719,88919, 223

97,93796,26296,58487,34180,130

3,9974,0094,1634,634

16,58716,11812,14313,41315,912

25,76629,26928, 41531,29632,593

170,161169,209173,495212,936198,835

4,5363,7244,2614,2704,531

15,75114,28810,5078,7005,554

34,35635,70337,09132,16435,885

360,278310,019358,277353,860361,087

9,0237,6757,5928,577

40,45643,28037,48923,49727,249

37,56468,45146,71441,55831,980

63,56359,78273,12167,26363,185

3,8603,6233,4233,7523,684

11,62512,1549,13011,43210,206

17,10321,46315,89213, 63416,737

99,91294,11693,32079,22974,618

1,0991,0371,2881,2381,152

470345312388

2,048

3,6074,5115,0334,4524,797

91,82791,63089,27188,20579,818

2,3402,4182,4462,6592,576

8,7534,1925,9185,3758,810

10,1919,88912,83412,10213,830

66,17162,47760,30957,374

3,0572,5722,6233,0152,359

1,9721,2541,5271,1901,298

5,0624,3944,7184,5956,051

249,759262,365259,185258,688243,024

3,5143, 5603,6113,6093,530

29,87117,52217,58723, 55327,932

32,19231, 50428,08018,19223,529

617,547

578,552577, 284449,670

252, 228249,633229, 773274,058229,474

63,87770, 05474,99794,13698, 681

121, 308131, 644134,897143, 465149,999

123, 016128,139132,135139, 415139,903

43,78142,77035,36231,10323,925

41, 43343, 66440, 53245, 33232, 296

595753

1,1342,4713, 584

1,0531,402

2, 2245,400

5,5465,6115,8646,3218,306

147,666149,725155,184188,96961, 228

62,82153,62044,18763, 43726,086

2,5474,0445,3529,93611, 762

29, 24229,12330,11932,11736, 275

22,30021,29822, 41723,92225,831

66,58261,37654,84647,28748,844

12,98010,85110, 23911,14212,495

622788

1,2242,7523,088

7791,1761,5082,1242,644

16,96817,13117,39117,93917,99^

68,19264,18359,77064,38451, 26.1"

20,89321,02322, 32621,07620,125

8,2748,6869,21211,12211, 541

14,10015,07515, 49016, 67517,325

5,9976,4687,4938,178• 8, 244

42,35345, 38740, 55844, 70948,505

10,51310, 4439,77410, 6369, 812

1,2891,4761,8022,9483,200

2,1942,6362,8853,3473,737

1,5571,7601,9562,3672,406

50,10749,99147,59840,86441,439

11,62010,80710,80310,88626, 647

1,1811,5311,8432,9441,050

6, 2777,1147,3637,834

7,467

8,1808,6733,001

78,020111, 73184,20365,05559,229

28,31928,76631,51635,17427,873

20,45221,15521,91724, 59125,914

12,87114,13213,81415,19518,797

8,4999,9219,85711,32613,272

28,72833, 61725,02225,06626,943

12,7469,1834,8636, 6517,970

2,7943,1993,1993,1993,199

9,40310,33510,33510,33510,335

11,47912,00912,20812, 20812,208

4,0774,8565,3454,8406,845

7,565

9,23120,52819,818

7,7738,0488,3219,2769,486

4, 4945,1395,3475,7326,057

3,4243,7483,9104, 2524,285

18,94414,08118,75217,47722,640

12,13612, 07413, 41613, 75812, 361

8,9359, 4829,80910,95511, 207

11,28312,55212,80113, 26313,653

10,26510,92911,12411, 53511,574

7,0345,6486,2455,7857,349

10,7049, 55210,54610,74710,740

8,5319,1258,9269,96410,294

11, 03212,32612,53312,91913,243

8,4059,0909,2539,5959,628

62,06349,02645,66741,74551, 461

20, 49821,56722,34024,69123,251

1,7672,2583,97,84,356

18,58020,63421,00721,70022,285

21,10922,18922, 48223,09923,157

329,83'342,02377,01

7,1947,7668,69311,01617,29C

54,08954,46557,88865,975

3,8105,1855,1855,1854,63S

18,36?19,09520,12322,81

73,868 23,723

3,2504,6254,625

5,0405,8726,6438,6629,343

4,62£3,57

14,92516,63017,38619,4514,299

56056056056C56C

41,82245,20845,58851,11257,983

23,67625,54325,74225,74225,742

15,69116,93517,57819,26019,828

30,48332,96333,73435,75336,434

27,96830,54130,71232,47833,16,

40,57344,59045,74748/77749,798

50C


M A Y , 1926 • FEDERAL RESERVE BULLETIN 359


RESOURCES—Continued



Phila-delphia

Cleve-land


cagoSt.

LouisMinne-apolis

KansasCity Dallas

SanFran-cisco

Foreign loans on gold:Mar. 24____.Mar. 31Apr. 7—_ _____Apr. 14. ____.Apr. 21

Total bills and securities:Mar. 24- _.Mar. 31—_„_____.__._Apr.7_Apr. 14______Apr. 21

Due from foreign banks:Mar. 24____ _Mar. 31...Apr.7Apr. 14 _.Apr. 21

Uncollected items:Mar. 24— ._Mar. 3 1 -Apr.7 _Apr. 14 ____.Apr. 21___

Bank premises:Mar. 24__________Mar. 31 -Apr. 7Apr. 14Apr. 21_._-___

All other resources:Mar. 24 . „ .Mar. 31 _.Apr. 7____-____-__—Apr. 14 _Apr. 21_ .__-.

Total resources:Mar. 24Mar. 31Apr. 7__Apr. 14-,Apr. 21

8,0108,4918,8008,7008,700

608646669661661

2,1922,3292,4112,3842,384

760

827827

856910942931931

424451466461461

320340352348348

1,0961,1651,2061,1921,192

361366378374374

256272282278278

312331

339

273287

305305

552586607600600

1,189,7961,225, 5371,164,3391,242,2431,081,062

643643643644

635,857620,294635,145

93,01694,84685,25688,11274,172

711,616

59,40659,44159,48059,48159, 519

14,73214,75915,04016,20115, 780

55,42655,44756,86373,54671,326

4,0684,0684,0684,0684, 068

97127858889

266,768270,139259,670320,765163,566

643643643643644

143,128141,915145,077191, 595170,256

16,66616,70116,70116, 70116,715

2,9103,2023, 5184,3554,481

101,94196,75590,669

118,312116,345115,233122,366109,428

58,33062,15357,44164,46868,121

77,53278,32876,69972,10973,293

149,257186,870162,513152,533146,277

65,51168,70956,00557,83361,029

27,58930,14632,43644,90647,269

61,87559,44966,24567,32771,774

45,97946,02847,81149,31551,559

123,686115,769114,361115,813125,110

60,80957,40559,55770,79664,080

1,5051,5051,5311,5321,532

396338354419

/ 319

58,44954,22658,40973,196

7,4097,4097,4097,4097,409

8598558S1907910

55,89156,63765,64258,140

2,3642,3642,3642,3642,364

341331380343328

37,49834,291

35,82139,656

2,7612,7612,7742,7742,774

1,0651,0481,0301,0141,095

80,57479,78774,90591,89788,450

7,9337,9337,9337,933

1,9661,9191,8991,9181,420

31,63532,95335,00838,28134,684

4,1114,1114, 1114,1114,111

432412415524514

12,80011,93813,56114,84413,106

2,9432,9432,9432,9432,943

2,4432,3852,2702,2762,220

37,67638,62038,57641,85540,295

4,4,6364,6364,636

482478497620662

24,66822,89824,54927,49127,150

1,7931,7931,7931,7931,793

402411404

36,83834,92335,97543,28440,610

3,2173,2173,2173,2173,241

3,3433,2813,3093,3263,338

4,916,3124, 902,5984,869, 7825,088,4594,879,859

384,073381,952376,781397, 241388, 671

1,493,9801,505, 5091,448,9051,557,0141,442,866

367,39437% 255370, 600380,811366,385

471,799469,656471,804493,121468,245

219,325221, 010217,569224,792213, 772

293,553289,361294, 287328,924320,184

609,031594, 203613,119616,718614, 976

169,112169, 590172,083171,764167, 207

146,786142,565145,818145,436141,308

197,231201,671205,302199, 761

142,066136,151137,487139,399137,631

420,357423,115419,658427,937418,853

LIABILITIES

Federal reserve notes in actualcirculation:

Mar. 24.Mar. 31 __•__.Apr .7Apr. 14 „ _Apr. 21_____ _„„__.

Deposits:Member bank—reserve

account-Mar. 24___ __.___.Mar. 31,___ . . .Apr. 7-____ __.__.Apr. 14._____ __.Apr. 21____________.__.

Government—Mar. 24_____._..._..._Mar. 31 ,Apr. 7—_Apr.14Apr. 21_ ._ ._ . . . _—. . . .

Foreign b a n k -Mar. 24 „•Mar. 31__.Apr. 7Apr. 14_._. _,Apr. 21

Other deposits-Mar. 24 ____-Mar. 31.Apr.7Apr. 14Apr. 21

1,658,9961, 656,4821,652,8781, 681, 0961,662,284

2,218,0072,215,2432,191,6352, 283, 2222,171,145

68,89285,81360,58043,280

8,4205,3997,9544,5764,494

18,31316,89718,29816,07420,283

152, 906152,740147,988145,858145,605

139,418137, 740138,137144,903142,421

10,1459,603

7,4511,538

481481555410307

1438284101

371,983369,838366,065363,393

902,077839,003922,827825,558

7,8216,097

9,341

3,825804

2,652660

1,565

7,9317,0826,8596,6879,317

146,079149,659142,751143,568138, 678

124,913128,886135,001135,444134,823

6,1626,1414,1193,3912,149

601601694512

12964100179166

203,339201,458199,948201, 678194, 206

171,466170,688173,601180,482173,701

3,104

6,0173,2511,424

677677781577432

919825998

1,0221,234

76, 96475,98576,30174,02872,981

67,31366,81868,51166,842

3,0125,6442,0573,0381,082

335335387286214

18170

60

160,522160,147163,099197,358191,222

77,70673,01175, 21377,31877,089

8,75711,7027,r~6,8122,196253253292216161

19678118103378

165,189162,028163,839167,020172,577

315, 223304, 347322,873314,085315,060

6,7607,3569,7981,631478

867867

1,000739553

821986902

1,0481,194

36,680

36,73337,06836> 955

78,96080,63278,12379,548

5,0655,1021,6471,908

272272314232174

1,151770

2,250270

64,94763,82564,37963,643

53,12650,44552,61952,62451,811

1,5674,9364,2333,4621,545

203203234173129

276167280246240

63,51963,10063,51662,87062,590

84,91085,440"87,78587,00886,007

2,0022,4431,4532,5961,119

247247285210157

409200185133761

36,97336,59237,07136,16336,473

59,48856,55758,90558,78458,383

5,4985,2422,8591,6241,628

222256189141

3572434841

181,992182,242187,415185, 777183,655

159,168160,274159,355164,782160,082

12,5494,3232,0181,030

437437504372278

6,1226,5016,2916,1696,211




LIABILITIES-Continued



Phila-delphia

Cleve-land


cagoSt.

LouisMinne-apolis

KansasCity Dallas

SanFran-cisco

Total deposits:Mar. 24Mar. 31Apr. 7 - —Apr. 14Apr. 21

Deferred availability items:Mar. 24Mar. 31 -.Apr. 7.—Apr. 14... -_._-.„.Apr. 21 •_.

Capital paid in:Mar. 24 _Mar. 31Apr. 7Apr. 14 .Apr. 21

Surplus:Mar.24Mar. 31Apr. 7 . . . . . . .Apr. 14Apr. 21

All other liabilities:Mar. 24Mar. 31Apr. 7Apr. 14.. . . . .Apr. 21

Total liabilities:Mar.24 __.Mar. 31Apr. 7 . . . . .Apr. 14..__Apr. 21

MEMORANDA

Ratio of total reserves to de-posit and Federal reservenote liabilities combined(per cent):

Mar.24Mar. 31 _.Apr. 7. . .Apr. 14________Apr. 21

Contingent liability on billspurchased for foreign corre-spondents:

Mar.24 ._..__.Mar. 31Apr. 7 . . . .Apr. 14Apr. 21 . . .„ ._ . . . .

Own Federal reserve notesheld by Federal reservebank:Mar.24Mar. 31Apr. 7 ,Apr. 14...Apr. 21 ._

2,313,6322,323,3522,278,4672,347,1522,219,750

588,910567,879582,779703,600640,652

120,404120,427120,455120,898121,452

220,310220,310220,310220,310220,310

14,06014,14814,89315,40315,411

150,187147,906146,769152,865144,459

54,50054,83755,52071,93572,066

8,7728,7728,7728,7728,772

17,02017,02017,02017,02017,020

688677712791749

905,864916,060

936,272845,781

121,519120,743125,634157,345136,080

33,88833,90333,92234,24234,629

59,96459,96459,96459,96459,964

2,8592,8562,9513,1263,019

131,805135,692139, 914139, 526137, 521

56, 53953,95454,92164,70557,107

11,93911,93211,93f11,94911,949

20,46420,46420,46420,46420,464

568554618

176,166181,188181,397185,332176,791

54,67049,41752,77068,32759,469

13,46013,46013,46013,47513,475

22,894

22,89422,89422,894

1,2701,2391,3351,4151,410

70,84172,86771,14370,23468,018

52,69653,31851,24061,66453,782

6,0006,0005,9955,9836,043

11,91911,91911,91911,91911,919

905921971964

1,029

86,91285,044

84,44979,824

31,83529,85033,16832,70834,619

4,9264,9344,9334,9384,945

8,7008,7008,7008,7008,700

658686765771874

323,671313,556334,573317,503317,285

70,96669,32865,35382,99675,937

16,29616,30016,29116,28816,291

30,61330,613

85,47785,10484,843

30,61330,613

2,2962,3782,4502,2982,273

80*508!

31,45132,25334,90638,47034,033

5,1465,1475,1475,2465,246

9,5709,5709,5709,5709,570

788793884877

4,916,3124,902,5984,869,7825,088,4594,879,859

74.373.474.673.076.0

71,01669,16168,17268,20267,696

321,068310,221306,335321,058343,555

384,073381,952376,781397,241388,671

74.774.076.575.981.2

5,5125,5125,256|5,1825,182

17,00514,77517,27916,62614,595

1,495,9801,505,5091,448,9051,557,0141,442,866

81.481.581.676.988.3

18,36316,50817,96218,69718,191

139,799141,834140,448141,659148,929

367,394372,255370,600380,811366,385

72.375.276.777.575.6

6,5706,4786,478

25,11229,47330,35935,522

471,799469,656471,804493,121468,245

74.875.075.273.976.4

7,7607,7607,4007,2967,296

16,10616,83116,22915,47522,326

219,325221,010217,569224,7922113,772

64.765.560.556.8

3,8443,8443,6663,6143,614

14,71115,92915,35818,52718,157

293,553289,361294,287328,924320,184

68.869.070.375.673.4

2,9012,9012,7662,7282,728

19,85819,58621,12128,01832,212

609,031594,203613,119616,718614,976

73.765.271.973.073.7

9,9369,4759,3429,342

16,93518,11117,13818,26317,785

169,112169,590172,083171,764167,207

52.049.160.157.253.8

3,1193,1192,9742,9322,932

4,8404,4793,9174,3304,942

55,17255,75157,36656,50553,725

15,05811,38312,45413,36211,898

3,1543,1523,1413,1423,142

7,5017,5017,5017,5017,501

954953977

1

87,56888,33089,70889,94788,044

33,86231,91834,51338,54035,123

4,2364,2364,2364,2424,256

8,9798,9798,9798,9798,979

672668719724769

65,24362,09362,06360,64560,193

27,38724,98625,82830,03928,439

4,3104,3144,3444,3364 ~ "

7,6157,6157,6157,6157,615

538551566601608

174,726179,761170,473173,341167,601

38,42735,89236,47243,50942,099

8,2778,2778,2828,2858,401

15,07115,07115,07115,07115,071

1,8641,8721,9451,9542,026

146,786142,565145,818145,436141,808

83.278.776.765.963.4

2,3212,3212,2132,1822,182

3,0533,0253,3943,1392,744

197,231201,671205,302199,761

60.860.558.357.753.0

2,828

2,6972,6592,659

6,0826,9506,0896,1926,445

142,066136,151137,487139,399137,631

64.763.360.859.356.2

2,5382,5382,4212,3872,387

5,5575,2514,3975,0574,705

420,357423,115419,658427,957418,853

70.072.572.472.069.2

5,0045,0044,7724,7054,705

48,85638,33831.19233,41335.193


, 1926 FEDERAL KBSEBVB BULLETIN 361

FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS


Bills discounted:M a r . 24 •_ . . .Mar. 31. . ._ .Apr. 7Apr. 14Apr. 21

Bills bought in open market:Mar. 24 ___. •_Mar. 31 ______

. Apr. 7-_— . . .Apr. 14Apr. 21

Certificates of indebtedness:Mar. 24Mar. 31 . . .Apr. 7Apr. 14 .Apr. 21

Total

617,547632,391578, 552577,284449,670

252,228249,633229, 773274, 058229,474

123, 016128,139132,135139,415139,903

Within 15days

486,050473,606430, 712436,193312, 567

110, 540117,65997,117132,73097,220

2,884103613

16 to 30days

31,38637,18134,98733,89732,320

61, 54652, 63552, 61557, 55960,606

4,e200

31 to 60days

51,25965,23059,11956,49154,093

52, 61952,28751,82454,63342, 702

60,703

61 to 90days

35,34541,31937,77033,15631,560

22,74423, 32724,80724,26824,230

25,20359,41862,99166,8632,251

91 days to6 months

8,7669,24711, 74612,92715,262

4,7793,7253,4104,8684,716

81,61154,60864,98258, 30050,203

Over 6months

4,7415,8084,2184,620

13,31814,1034,126

14,03922,057

FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS


Total B<|§tonNewYork

Phila-del-phia

Cleve-land

Rich-mond Atlatna Chicago St.

LouisMinne-apolis

KansasCity Dallas

SanFran-cisco

Federal reserve notes receivedfrom comptroller:

Mar. 24Mar. 31 __ _ . . .Apr. 7Apr. 14Apr. 21___

Federal reserve notes held byFederal reserve agent:Mar. 24__ ___..Mar. 31_

p. Apr. 14___ ______

Apr. 21__Federal reserve notes issued to

Federal reserve bank:Mar. 24

Apr. 7. __.Apr. 14Apr. 21__-_.___ ___._.

Collateral held as security forFederal reserve notes issued toFederal reserve bank:

Gold and gold certificates—Mar. 24__Mar. 31___. __.Apr.7______ __-..Apr. 14Apr. 21 ...

Gold redemption fund—Mar. 24_________Mar. 31____Apr. 7_____-__Apr. 14 _Apr. 21_

Gold fund, Federal ReserveBoard -

Mar. 24___ _Mar .,31 •__Apr. 7 ______Apr.l4___._Apr. 21.

Eligible pape r -Mar. 24. LMar. 31. _Apr.7__ _____Apr. 14___ _______..Apr. 21____ L

Total collateral-Mar. 24. ___L__Mar. 31___Apr. 7Apr. 14Apr. 21 ____

2,807,7012,809,8092,802,4742,832,2112,859,710

827,637843,106843,261830,057853,871

1,980,0641,966,7031,959,2132,002,1542,005,839

310,498311,743309,393309,653309,253

105,606104,80599,051110,457100,600

945,175976,087965,320

827,811838,769777,026822,806648, 512

2,232,1182,200,4922,161, 5572,208,2362,146,960

216,911217,515213,967213,184213,600

47,00050,00048,70050,70053,400

169,911167,515165,267162,484160,200

35,30035,30035,30035,30035,300

16,92414,52810,98017,19714,613

69,00049,00054,00068,00068,000

85, 21486.43475,89476.43556,221

206,438185, 262176,174196,932174,134

736,045740,177736,646740,564749,482

226,360226,360226,360232,840237,160

509,685513,817510,286507,724512,322

186,698186, 698186,698

26,41526,32226,32226,20026,110

131,000131,000131,00076,000241,000

195,023190,125187, %4T240, 53972, 539

539,136534,145531,167529,43'526,34'

211,865212,691214,144211,447213,320

37,52037,92041,92037,52039,120

174,345,174,771172,224173,927174,200

1,200800800800400

10,44812,2759,72812,0309,903

105,389103,389109,389109,597113,497

64,51562,83753,02052,50152,379

181, 552179,301172,93"174,928176,179

273,795274,239276,327273,803274,482

54,35055,95060,15056,65057,950

219,445218,289216,177217,153216,532

12,00211,64712,33513,41213,289

170,000150, ooo;,150,000150, OOO!150,000'

88,57883,97680,038

70,149

279,360254,403251,153255,186242,218

117,815117,854117,699119,0951 2 3 , •"

26,14025,94026,04026,54032,540

91,67591,91491,65992,55591,138

25,65525, 65525, 65525, 65525,655

2,4563,9962,8414,3762,959

20,50017,50017,50020,50010,500

47,76252,35549,44951,37755,996

96,37399,50695,445101,90895,110

227,490225,978230,885258,891270,668

47,11046,24546,66533,51547,234

180,380179,733184,220225,376223,434

12,97712,97712,97713,23713,237

5,9514,0398,5667,4525,329

104,000105,000107,000155,000140,500

60,30858,99457, 26150,58466,978

183,236181,010185,804226,273226,044

410,761410,776407,514407,520409,099

230,637226,537222,237218,737

182,124180,139180,977185,283190,362

3,7453,7453,7223, r"

125,644125.644125.645125.644125.645

106,159140,310115,525100,06086,934

235, 548269,699244,892229,390216,232

65,60065,76264,81065,53865,397

24,08024,56024,16024,14023, 500

41,52041,20240,65041,39841,897

9,79511,0958,7458,7458,745

1,1151,797845

1,1,452

3,2001,2007,5006,5005,000

40,82641,91729,05630,64333,920

54,93656,00946,14647,48149,117

85,86385,40784,71586,31086,056

17,86318,55716,94219,52819,363

68,00066,85067,77366,78266,693

12,86713,21213,21213,21213,212

9701,514822757

1,103

48,00048,00048,00038,00034,000

11> 40712,61614,37425,20426,504

73,24475,34276,40877,17374,819

118,591117,900116,955116,212115,585

48,99047,85047,35047,15046,550

69,60170,05069,60569,06269,035

57,11756,43055,60557,05756,415

14,58714,58714,13715,83715,237

42,53041,84341,46841,22041,178

17,22617,226

285,848285,080283,207282,590281,928

55,00064,50064,30063,400

230,848220,580218,907219,190218,848

17,226

4,1543,4632,5193,7753,148

45,86045,86045,86043,86041,860

29,84625,05331,71530,92534,795

79,86074,37680,09478,56079,803

17,22617,226

3,6924,0053,1813,1322,490

7,0007,0007,0007,0005,500

16,91314,30916,43016,17417,902

44,83142,54043,83743,53243,118

17,73417,47417,19016,84716,551

158,610161,582173,193165,219153,093

81,26069,84367,11765,37074,195

257,604248,899257,500247,436243,839



FEDERALJjRESERVE BANKS-HOLDINGS OF BILLS AND SECURITIES AND EARNINGS THEREON, MARCH, 1926[In thousands of dollars]


Phila-delphia

Cleve-land

Rich-mond Atlanta Chicago St.

LouisMinne-apolis

KansasCity Dallas

SanFran-

HOLDINGS ON MARCH31,1926

Total bills and securities -Bills discounted for members.—Bills bought in open marketUnited States securitiesOther securitiesForeign loans on gold

225,537632,391249,633329,837

5,1858,491

94,84642, 77043, 664

7,766

""646

270,139149, 72563, 62054, 465

~2,~329"

96, 75561, 37610,85119,0954,625

808

16,34564,18321,02330,229

62,15345,38710,4435,872

910 451

78,32849, 99110,80716,630

560340

186,870111, 73128,76645,208

68, 70933,617

9,18325, 543

30,1464,8568,083

16, 935

59,44914,08112,07432,963

46,0285,6489, 552

30, 541

1,165^ 366 272 331 287

Bills Discounted

Eediscounted bills: i .Commercial and agricultural

paper, n. e, s ._Demand and sight draftsBankers' acceptances __Trade acceptances, domestic _Secured by U. S. Govern-

ment obligationsMember bank collateral notes:

Secured by U. S. Govern-ment obligations

Otherwise secured

212,818225104

2,793

2,094

309,394104, 963

22, 366 11, 286 11, 602 14, 757

102112

182

20,008

178 117

89

00,98737, 274

562

366

44,0734,425

Total discounted bills

Bills Bought

Bills payable in dollars:Bankers' acceptances based

on—Iinports -Exports ---Domestic transactions...Dollar exchangeShipments between or

storage of goods in for-eign countries

Allother —Trade acceptances based on

imports----- - -•Bills payable in foreign currencies.

Total purchased bills

United States Securities

United States bonds -Treasury notesCertificates of indebtedness

Total U.S. securities

DAILY AVERAGE HOLD-INGS DURING MARCH

Total bills and securities *, Bills discountedBills boughtUnited States securities. _Foreign loans on gold

632, 391 42, 770

110,35473,35234,329

3, 750

23,3872,521

8031,137

25,2497,3926,263

877

3, 83845

149, 72

25, 83619,0888,268

737

6,8091,976

645261

61, 376 64,183

4,4614,3251,293

34

738

8,7566,8063,183

222

1,180

876

249,633 43,664 63, 620 10, 851 21,023

70,054131,644128,139

329,837

EARNINGS DURINGMARCH

Total bills and securitiesl_Bills discountedBills bought— —-United States securities—Foreign loans on gold

ANNUAL RATE OF EARN-INGS

Total bills and securities l-Bills discountedBills boughtUnited States securities. _ _Foreign loans on gold

176,43ft558, 795269,634336,198

8,201

3,8021,905

8281,027

30

3.804.003.613.604.50

7531,4025,611

4,04429,12321, 298

7881,176

17,131

8,68615,0756,468

7,766 54,465 19,095

85,34335,15142,075

7,494623

27212012921

2

3.75•4.003.613.294.50

274,928140,81363,36868,501

2,246

8714781931919

3.733.993.593.294.50

99,40559,90116,07419,366

781

32820449613

3.874.003.583.724.50

30, 229

108,60456,61120,75130,363

879

35319264943

3.834.003.633.624.50

21,680 29,10536

56,334 18, 76130

2,918 7, 373 3,747

385

233

15,8857,204

234

496

13, 7926,328

45, 387 49,991 111, 731

4, 2883,0532,146

60

766130

1, 9536,1262,051

676

10,443 10,807

1,4762,6361,760

1,5317,1147,985

5,872

59,64543, 55810,3545,299434

19714832152

3.884.003.653.314.50

72,81840,00616,92415,280

328

24314054471

3.834.003.603.634.50

675

126

43,15411,442

302

520

11, 6342,370

12

3461,592

27

4,1652,516

1,254635

33, 617 4,856 14,081 5,648

11, 9129,0394,555863

2; 31582

3,8972,7181, 244441

783100

3,0632,793938172

980137

6,0473,5281,212

87

1^200

3,8953,55136681

1, 659

28,766 9,183 8,083 12,074 9,552

21,15514,1329,921

3,19910,33512,009

8,0485,1393,748

9,48212, 55210,929

9,12512,3269,090

45,208 25, 543 16, 935 30,541

151,35475,50729,89844,8281,121

498257921454

3.874.003.633.804. 50

63,66826,12613,43123,758

353

2058941741

3.794.003.613.654.50

31,0796,6997,61016,508

262

102232454

3.854.003.633.874.50

6,17,49913,39732,405

320

2046041102

1

3.784.003.623.724.50

49,1486,64112,59429,626

287

155233893

3.724.003.603.704.50

115,76949,02621,56744, 590

586

12,8891592

216

55

17,46718,238

49,026

10,9974,9332,810176

2,44350

158

21, 567

1,76720,63422,189

44,590

116,77850,28323,15842,770

567

374171711302

3.774.00

3.564.50

1 Figures include Federal intermediate credit bank debentures as follows: Philadelphia, average daily holdings, $3,283,000; earnings, $10,736;annual rate of earnings, 3!85 per cent; Atlanta, average daily holdings, $280,000; earnings, $863; annual rate of earnings, 3.52 per cent; and KansasCity, average daily holdings, $48,000; earnings, $160; annual rate of earnings, 3.90 per cent.


MAY, 1926 FEDERAL BESEEVE BULLETIN 363

FEDERAL RESERVE BANKS—VOLUME OF DISCOUNT AND OPEN MARKET OPERATIONS DURING MARCH, 1926

[Amounts in thousands of dollars]

Total Bos-ton

NewYork

Phila-delphia

Cleve-land


cagoSt.

LouisMin-ne-

apolis

Kan-sas

CityDallas

SanFran-cisco

Total Volume of-Operations.. 4,192, 270 237,0501,936,961 292,600 307,858 327,185 102, 561 382,367 129,904 25, 964 128, 265

Bills discounted for member banksBills bought:%&'„; In open market .,__

~ From other Federal reserve banks. _.U. S. securities bought in open market__Foreign loans on gold _.__..

Bills Discounted

Rediscounted bills:Commercial, agricultural, and live-

stock paper, n. e. s_ _-—_—_ ..Demand and sight drafts--__Bankers' acceptances ____Trade acceptances _ ____..Secured by U. S. Government obli-

Member bank collateral notes:Secured by U. S. Government obli-

gations *. _Secured by eligible paper 3

Total bills discounted.

Average rate (365-day basis), per cent . - .Average maturity (in days):

Member bank collateral notes —.:Rediscounted bills . r

Number of member banks on Mar. 31. . .Number of member banks accommo-

dated during month.___ —_Per cent accommodated. _—

Bills Bought in Open Market

From member banks .From nonmember banks, banking cor-

porations, etc.:With resale agreementAll other

Total bills bought.

Rates charged:ZYi per cent —— iZ% per cent.Z% per c e n t . . . . . .3% percent . .—-- . - - - . „ _4 per cent------ - ;.«4& per cent4 ^ per cen t . . . ——4& per cent . . _4& per cen t . . . -

Average rate (365-day basis), per cent . . .Average maturity (in days)4

Class of'bills:Bills payable in dollars4—

Bankers' acceptances based on—ImportsExports -_.-Domestic transactionsDollar exchangeShipment between or storage

of goods in foreign coun-tries——. —_._„.

Allother _.Trade acceptances, foreign

Bills payable in foreign currencies_ _.

Total.

U. S. Securities Bought in Open Market

United States bondsTreasury notesCertificates of indebtedness.

Total-

36, 659 284,896

3,217,081

28, 919699,359

2,090

199,5291,268,798

34,413

2, 948160

267, 698 288, 703 318,411

108,099

532,860575

17,9941,6313,502

200

11,138 5,757

87, 545 298,012 111,

4,324 19,115

,229

5, 557

7,792225

2,906111

10,04884

64, 952 13,02890

15,689 107,622

6,091

13,81182

4,405

12, 331 241, 514

4,395 21,398

5,80367

19,87063

21, 839145

209, 995724102

2,010

1,928

2,336,814665,508

3,602 8,043 9,933 16,829 15,257 2 24,659 71,249

102112

52

38,252214

2,174 4, 750 2,902275

12, 345146

552

162

290

144

215

454

69

116

76,135 1,100,962119,526 159,595

177,739 226,103 205,58779,931 45,057 97,133

39,546 209,00222,582 17,576

301

474

62,9449,044

500

179

19

6,1957,320

94,4878,379

5,699132,4152,955 96,410

3,217,081 199,5291,268,798 267,698 288,703 318,411 87,545J298,012 111, 22915,689 107,622 12,331241, 514

4.00

5.9153.919,424

3,04532.3

4.00

6.7848.80418

19947.6

4.00

4.8955.16

40145.4

4.00

7.2056.09757

51.9

4.00

5.9450.88860

29534.3

4.00

2.5162.39594

47.6

4.00

11.3669.64495

20341.0

53,777

137,36451,545

19,1365,378

3,907

100,903

5,690 7,452 2,678 3,312

12,304 3,686 3,079 1,012

242,686

186,13645,4629,022957890262010766

3.6147.59

43,86227,25918,2202,579

11,822417396767

34,413 108,099 17,994 11,138 5,757 4,324

27,4396,7721915

106,5521,128

9,4328,276

3.5854.22

7,8492,7532,942225

1,508

20180262010766

3.5131.90

2,2252,1581,104110

1,204

7,7852,3251,015

13

3,800758

1,1195030

2,2981,503

9119

413

3.6452.37

8,2035,3352,423139

3.6444.47

3,9393,1212,022

1,258

3.6736.94

1,8581,3701,742

70

717

3.6849.27

7051,4431,429

166

330417

105,322 15,277 7,196 17,994 11,138 5,757 4,324

32,0428 70,233597,084

2151,7091,024

12,96719,459500,434

210636

2,656

7902,7544,248

304 1,7351,069 2,6931,533 5,620

699,359 2,948 532,860 3,502 7,792 2,906 10,048

4.00

10.7647.361,;

35.3

4.00

8.1945.18622

20032.2

4.00

11.8074.44822

10.5

4.00

3.6673.931,016

17517.2

4.00

11.7087.90850

13415.8

4.00

7.2058.80724

18826.0

6,367 8,110 2,047

5,5867,162i 2,447 2,476 3,211 2,348

4,506

11,7395,153

19, U5J 5,557 4,405

9,7524,3114,271778

3.7044.57

6,2002,7472,5441,120

918

13, 529

4,03119,21841, 703

64,952

4,1221,074324

2,6531,598138

37 16

6,091

3,8821,6065811012

21,398

1,858 6,56314,245

41250128

3.6443.98

Im1,046200

848

3.6448.82

1,7601,28255125

787

3.6550.61

2,8581,65376362

755

3.6961.94

1,6511,442170256

876

3.6546. 27

4,6152,4911,484112

727

230

5,557 4,405 6,091 4,395 9,659

1,4793,8137,736

5332,0233,247

1,0424,4507,419

5,9725,1238,775

1,8647,286

12,689

13,028 5,803 13,811 19,870 21,839

1 Includes Federal intermediate credit bank debentures as follows: Philadelphia, $1,575,000; Atlanta, $560,000.2 Includes $1,000,000 discounted for the Federal Intermediate Credit Bank of Columbia, S. C.3 Includes bills taken under a resale contract.* Exclusive of acceptances bought under a resale contract.5 Exclusive of $38,000,000 Treasury notes sold under repurchase agreement and subsequently repurchased.


364 FEDERAL RESERVE BULLETIN MAY, 192d

REPORTING MEMBER BANKS IN LEADING CITIESPRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS


Number of reportingbanks:

Mar. 17 '-Mar. 24Mar 31..—Apr. 7 —Apr. 14 —

Loans and discounts

' Secured by XJ. S.G o v e r n m e n tobligations-

Mar. 17.Mar. 24_.Mar. 31Apr. 7.Apr. 14

Secured by stocksand bonds-

Mar. 17Mar. 24...Mar. 31 -Apr. 7Apr. 14

All other loans anddiscounts-

Mar. 17 —Mar. 24Mar. 31—Apr. 7Apr. 14 —

Total loans anddiscounts—

Mar. 17..Mar. 24 . . .Mar. 31..Apr. 7Apr. 14

U. S. Government se-curities:

Mar. 17.Mar. 24.Mar. 31.Apr. 7 —Apr. 14

Other bonds, stocks,and securities:

Mar. 17Mar. 24Mar. 31Apr. 7. -Apr. 14

Total investments:Mar. 17 — , - .Mar. 24.....Mar. 31 _ ... .Apr. 7Apr. 14

Total loans and invest-ments:

Mar. 17—Mar. 24......„___.Mar. 31..,Apr. 7Apr. 14

Reserve balances withFederal r e s e r v ebank:

Mar. 17.Mar. 24Mar. 31.Apr. 7__Apr. 14.. . .

Cash in vault:Mar. 17Mar. 24Mar. 31Apr. 7Apr. 14

Net demand deposits:Mar. 17Mar. 24. . . . . . .Mar. 3kApr. 7Apr. 14

Total

712711710709708

163,962163, 326164,338164,102161,354

5,334,3485, 324, 0695,403,2695,349, 9725,256, 418

8,446,204

8,483,9608,448,0248,479,341

13,944, 51413,947,28414,051, 56713,962,09813,897,113

2,698,2482,583,4382,480,1632,523,2092,554,944

3,001,0312,991,9303,014,5403,007,2453,044,699

5,699,2795,575,3685,494,7035,530,4545,599,643

19,643,79319,522, 65219,546,27019,492,55219,496,756

1,662,4411,646,5681,655, 2651,621,9291,710,999

271,497276,574272,422285,121285,488

13,015,85712,742,66812,901,24412,760,75412,897,703


Boston

10,69411,22511,79510,26310,208

328,957322,327327, 673310,011317, 577

651,157657,005650,893661,038662,865

990,808990,557990,361981,312990, 650

182,008167,228152,610167,938161,176

208,532221,330221,342225,791224,356

390,540^ 388,558373,952393,729385,532

1,381,3481,379,1151,364,3131,375,0411,376,182

95,79794,41492,74491,84398,398

20,19320,27719,88821,35920,941

884,015870,023864,802875,495896,915

NewYork

Phila- Idelphia

97

54,69554,83156,31055, 64154,257

2,295, 5042,325,8112,375,2532,336,0652,216,347

2,665,6122,690,8452, 706,3682, 661,6792, 676,809

5,015,8115,071,4875,137, 9315,053,3854,947,413

1,036,640977,952964,123982,898

1,011,982

1,172,4211,154,3961,161,3691,164,1051,189,432

2, 209,0612,132,3482,125,4922,147,0032, 201,414

7,224,8727,203,8357,263,4237,200,3887,148,827 1

773,924778,560803,381740,064820,043

76, 62277,35077,02082,44779,993

5,687,1095,589,9555,742,6425, 563,7865,572,518

11,46110, 74812,12711, 64711,364

405,298390, 272

394, 675

368,350374,194371,887373,777381,959

785,109775,214774,107780,099799,926

121,699121,690114,622107,707105,887

250,882249,187248,015246,846251,172

372,581370,877362, 637354,553357,059

1,157,6901,146,0911,136,7441,134,652,156,985

85,06175,05179,18082,49283,402

16,13616,19616,87316,46116,750

765,061748,504755,811749,886782,385

Cleve-land

20,69120,58321,08620,90420,243

517,358523,357533,025539,009530,813

762,416770,447771,444774,065773,158

1,300,4651,314,3871,325, 5551,333,9781, 324,214

296,790287,886284,518289,485283,370

347,311345,660344,679344,273351,340

644,101633,546629,197633,758634,710

1,944,5661,947,9331,954,7521,967,7361,958,924

117,997117,848118,296119,971125,857

29,99631,14^29,00932,32630,674

1,003,524983,956

1,005,2851,005,9321,003,043

Rich-mond Atlanta

68

4,7484,7675,2075,0605,116

142,921142,230142, 619138,435136,943

367,973367,589369,769375,774377,800

515, 642514, 586517, 595519,269519, 859

77,91171,94170,78971,64470,270

60,39260,981' 59,88460,95860,950

138,303132,922130, 673132,602131,220

653,945647,508648,268651,871651,079

40, 64341,10839,01443,02239, 638

13, 38913,81913,89814,18013,898

367,376365, 611365,609367,563365,94"

8,1108,0738,0298,0527,f~

102,28299,26899,334104,905106,857

418,947420,064420,058412,832408,976

529,339527,405527,421525, 789523, 519

58,27458,21957,05652,14347,913

52,68152,55853,87453,75454,215

110,955110,777110,930105,897102,128

640,294638,182638,351631,686625, 647

45,07942,98037,43641, 69643,011

10,66511,28411,27611,25712,169

367,242354,993349,777349,919360,182

Chicago

100

22,06019,96518,47221,31320,543

804,537793,115798,422794,233816,319

1,247,2251,234,753l 2 4 6 r "1,251,3411,249, 743

2,073,8222,047,8332,063,8022, 066, 8872,086, 605

334,807313,533272,649292,238315,346

444,569443,087457,402451,505449,436

779,376756, 620730,051743,743764,782

2,853,1982,804,4532,793,8532,810,6302,851,387

243,561232,120223,63!240,124232,209

47,70548,15947,22248,36850,677

1,762,8471,685,9651,678,3251,719,3641,755,920

St.Louis

Minne-

33

13,08312,16811, 53611,34611, 789

198,441200,811203,886202,429202,118

318,056317,086315,501316, 616316,131

529, 580530,065530, 923530,391530,038

66,81766,76659,76858,41663,892

109,393110,683110,931105,404105, 621

176,210177,449170, 699163,820169,513

705,790707,514701, 622694,211699,551

47,86146,96547,21048,49144,844

7,5077,3577,7127,7088,359

413,083411,339404,715405,075410,968

KansasCity

2,5092,5312,5532,5112,522

65, 710

62,19262, 55563, 570

180,395174,849174,251172, 753171,874

248,614

237,819237,966

72,38272,92473,56972,09372,149

42,93743,81143,57742,52842,960

115,319116,735117,146114,621115,109

363,93!359,104356,142352,440353,075

24,59025,97023,53425,39825,652

5,4887,1835,9366,3446,569

225,183225,393219,010218,920220,918

69

3,6414,0753,7543,9243,957

113, 330104,468104,910101,863102,770

323,092324,714323,045320,013320,187

440,063433, 257431, 709425,800426,914

113,268115,670112,045111, 876112,388

78,05378,25580,57782,01180,836

191,321193,925192,622193,887193,224

631,384627,182624,331619,687620,138

52,16551,84452,34255,01354,732

12,37512,758

12,83312,915

487,778480,164481,928479,666481,078

M l a s Francisco

3,1563,1583,111

3,075

83,76682, 76484,17784,79877,889

232,503226,915225,791225,042231,344

319,425312,837313,079312,908312,308

61,15458,31656,856

53,473

23,73921,84222,43223,514

84,06082,055

79,12776,987

403,485394,892391,777392,035389,295

29,43130,58927,43029,79929,848

10,18010,40010,46811,22510,764

279,892275,459272,408275,376274,059

San

66.66

66

9,11411,20210,35810,37a10,594

276, 244274, 657281,685280,994278,612

910,478901,428908,045903,094908,495

1,195,8361,187,2871,200,0881,194,4611,197,701

276,498271,313261,558260,076257,098

210,954208,243211,048207,638210,867-

487,452479,556472,606467,714467,965

1,683,2881,666,8431,672,6941,662,1751,665,666

106,332109,119111, 066104,016113,365

21,24120,64420,79720,61321,779

772,747751,306760,932749,772773,770



PRINCIPAL RESOURCES AND LIABILITIES, BY W EEKS—Continued


Time deposits:Mar. 17..Mar. 24_____.___-_.Mar. 31. . .Apr.7_.._ __..Apr. 14

cvernment deposits:Mar. 17. . . .Mar. 24Mar. 31 . . . .Apr. 7 . . . . -Apr. 14

Bills payable and re-discounts with Fed-eral Reserve Bank:

Secured by U. S.Government ob-ligations—

Mar. 17Mar. 24.Mar. 31. . .Apr. 7Apr. 14.. _

All o the r -Mar. 17Mar. 24Mar. 31Apr. 7 . „ .Apr. 14.._..___

Total borrowings fromi Federal reserve bank:

Mar. 17Mar. 24Mar. 31Apr. 7Apr. 14...

Total

5,465,9265,485, 6185,476,9415,516,1745,505,127

376,903294,0902.95,809293,427293,878

174,880253,188214,496202,877255,328

118,145165,625205, 606170,482132,179

293,025418,813420,102373,459387,507


Boston

398,842400,500400,479402,136

47,45247,46247,45247,452

3,6112,6154,3872,7483,100

2,94621,66315,11812,56011,481

6,55724,27819, 50515,30814, 581

NewYork

P a evedelphia land

1,217,7591,228,9131,246,5921,249,8731,229,932

75,58858,306

57,67657,676

59,62090,84978,05888,000143,650

17,86826,15736,09837,69217,400

77,488117,006114,156125, 692161,050

Phila-l i

215,^34219,878222,082223,898223,442

45,50535, 71735, 71835,71835,718

11,82621,21611,2559,6376,214

9,55510,48513,1029,6178,142

21,38131,70124,35719,25414,356

Cleve-l d

769,777774,372762,659787,053786,300

46,13735,93535,99736,00635,935

17,42531,15031,51727, 70330, 934

11,21817,22613,16612,68112, 552

28,64348,37644,68340,38443,486

Rich- AflnT1tflmrmri Atlanta

206,426206,212206,934209,428206,946

13,79111,33311,31311,39712, 076

5,6065,2145,8023,5764,136

15,37111, 79214,34312,32515,134

20,97717,00620,14515, 90119,270

217,249217,938212,560218,483219,778

18,82514,64914,64914,45614,453

11,84114,39812,8129,0717,285

19,06023,06622,67924,03719, 974

30,90137,46435,49133,10827,259

1,040,2451,038,9631,002,9761,021,1121,032,869

34,23826,40126,40226,40226,302

26,87537,14834,94428,33519,520

7,17,86552,44028,32623, 655

34, 53855,01387,38456,76143,175

s t - Minne- KansasL o u i s a p o l i g C i t y

219, 550219,693219,638216,839218,056

12, 7009,8999,9229,9229,867

5,9535,9536,2905,0117,223

8,37512,22915,8779,9737,206

14,32818,18222,16714, 98414,429

111, 737110,975113,773110,252109,717

6,5365,1426,7845,1425,141

3,950l,JL501,4401,6401,583

410535

2,8031,254700

4,2432,8942,283

149,017149,289150,396147,552146,469

12,61010,09610,09610,09610,096

5,4077,4323,0544,7844,250

2,6443,9783,5866,2335,445

8,05111,4106,64011,0179,695

SanFrancisco

99,824100,337100,31899,78899,478

11,4438,8248,8248,824

5651,545765

1,015665

2,9762,1071,3011,362

3,5413,6522,0662,3771,611

820,169820,206838,513831,417830,004

39,23230,33630,33630,336

22,20134,51824,17221,35726,768

20,05918,52215,09314,4229,544

42,26053,04039,26535,77936,312

REPORTING MEMBER BANKS IN 12 FEDERAL RESERVE BANK CITIES—BANKERS' BALANCES.[In thousands of dollars]

Total (12cities)

Federal reserve bank city

Boston STew York Phila-delphia

192,007168,280171,142176, 543187, 582

68,48165,42373,31870,50574,905

Cleve-land

46,34944,80845,59048, 37649, 544

27,45330,43124,35428,43129,361

Rich-mond

34,53531,80830,43233, Oil32, 696

17,28715,46816,23815, 56517,124

At-lanta

20,58318,14916,72917,97717,193

13,29812, 771

* 13,41712,52415,041

Chicago

386, 877363,046398,371405,408396,112

159, 544143, 911136,521144.540156,112

St.Louis

86,81181,63382, 24585, 59683,712

29, 65528,07026,98827,88128,196

Minne-apolis

56,97753,58152,26742,94450,176

23,15117,22120, 89621,422

. 21,247

KansasCity

95,09989,00288, 72492, 56191, 204

40,32537,83639,25239,05736,242

Dallas

26,94526, 59727,31729,70126, 903

22, 52221,15322,16022, 90126,118

SanFran-cisco

Due to banks:Mar. 17Mar. 24Mar. 31 .Apr. 7Apr. 14.._._.

Due from banks*Mar. 17Mar. 24Mar. 31Apr. 7Apr. 14

2,284, 6292,149,8862,295,0312,242,1902, 275,050

590, 917547,240563,485581, 529611,617

141, 798126, 569125,444136,781133,859

40, 63645,11447, 550

1,101,6611,057,6031,167,1451,078,8151,108,619

97,88685,814103,084104,748109, 521

8,8109,625

94, 47797, 450

52, 37850,81146, 62148,841*59,200

LOANS TO BROKERS AND DEALERS, SECURED BY STOCKS AND BONDS, MADE BY REPORTING MEMBER BANKS IN NEWYORK CITY


1926Mar. 17Mar. 24Mar 31Apr 7Apr. 14.

Demand and time loans

Total

2,803,9492,690,1992, 573,0512,487,3522,451,339

For ownaccount

1,033,4741,026,5391,047,784958,386876,765

Foraccountof out-of-

townbanks

I

1,174,4931,098,252l,006>4111,018,1561,051,878

Foraccount

ofothers

595,982565,408518,856510,810522,696

Demand loans

Total

1,886,3651,798,7811,704,0401,636,7241,613,156

For ownaccount

568,061571,317604,801524,752438,096

Foraccountof out-of-townbanks

792,042734,063650,581667,372713,937

Foraccount

ofothers

526,262493,401448,658444, 600461,123

Time loans

Total

917,584891,418869,011850,628

For ownaccount

465,413455,222442,983433,634

Foraccountof out-of-townbanks

382,451364,189355,830350,784337,941

Foraccount

ofothers

69,72072,00770,19866,21061,573


366 FEDERAL RESERVE BUIiLETIN M A Y , 1926

REPORTING MEMBER BANKS IN NEW YORK CITY AND CHICAGO—PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS


Number of reporting banks

Loans and discounts, gross:Secured by United States

Government obligations..Secured by stocks and bonds.All other loans and dis-

counts - '. -_

Total loans and discounts _

U. S. Government securitiesOther bonds, stocks, and securi-

ties

Total investments

Total loans and invest-ments

Reserve balances with Federalreserve bank

Cash in vaultNet demand depositsTime depositsGovernment deposits

Bills payable and rediscountswith Federal reserve bank:

Secured by United StatesGovernment obligations..

All other

Total borrowings fromFederal reserve b a n k . . .

New York City

Mar. 17

60

49,9422,016,670

2,344,456

4,411,068

921,221

874,762

1,795,983

6,207,051

717,30962,048

5,122,825812,293 .67,456

43,58714,761

58,348

Mar. 24

60

49,9232,040,938

2,368,279

4,459,140

865,957

857,622

1,723,579

6,182,719

722,42162,728

5,030,129818,467

52,067

76,41221,815

98,227

Mar. 31

60

51,3042,099,750

2,379,578

4,530,632

850,924

864,440

1,715,364

6,245,996

743,01662,203

5,150,463835,24852,067

57,33230,985

88,317

Apr. 7

60

50,8042,054,696

2,338,763

4,444,263

870,248

864,625

1,734,873

6,179,136

682,86766,417

4,999,087836,29152,067

74,01232,684

106,696

Apr. 14

59

49,3251,938,780

2,352,634

4,340,739

894,025

889,503

1,783,528

6,124,267

763,15264,854

5,001,492814,09352,067

131,44712,600

144,047

City of Chicago

Mar. 17

46

15,036599,001

685,247

1,299,284

178,158

207,306

385,464

1,684,748

169,00620,816

1,140,757516,72414,823

15,715741

16,456

Mar. 24

46

13,473586,774

683,541

1,283,788

159,753

203,593

363,346

1,647,134

162,14021,063

1,103,771513,42411,361

14,6695,413

20,082

Mar. 31

46

11,840592,948

687,450

1,292,238

130,763

218,758.

349,521

1,641,759

152,36420,937

1,090,346480,48511,362

11,59432,964

44,553

Apr. 7

46

14,767588,197

695,167

1,298,131

148,244

213,679

361,923

1,660,054

163,54921,144

1,130,666495,87411,362

10,39510,896

21,291

Apr. 14

46

14,190607,537

686,742

1,308,469

166,385

214,515

380,900

1,689,369

157,14522,497

1,151,851503,09611,352

6,22010,039

16,25$

ALL MEMBER BANKS—DEPOSITS, BY FEDERAL RESERVE DISTRICT AND SIZE OF CIT*Y



Net demand deposits

1925

Dec. 23

1926

Jan. 27 Feb. 24 Mar. 24

1925

Mar. 25

Time deposits

1925

Dec. 23

1926

Jan. 27 Feb. 24 Mar. 24

1925

Mar. 25

BostonNew York.. mPhiladelphiaClevelandRichmond _Atlanta^Chicago._.,___St. Louis . . . .Minneapolis....Kansas City . . .Dallas _San Francisco

Total

Banks in cities and towns havinga population of—

Less than 5,000 _.5,000 to 14,99915,000 to 99,999100,000 and over

1,6,496; 1791,183,1781,467,169610, 641825,332

2,429,093757,463466,046870,557668, 749

1,335,362

1,374,3306,455,8551,190,6011,495,667613,437760,379

2,429,995760,201452,173862,059659,813

1,311,604

1,350,0756,371,7381,170,1801,507,999620,320156,985

2,169,183745,970457,021862,546654,003

1,294,977

1, 337, 2196,370,1291,169,7501,467,382605,734726,842

2,412,260733,071452,286842,218637,392

1,259,406

1, 270,1446,109,7361,127,8801,456, 781569, 755616,226

2,382,909722,922475, 267872,756662,862

1,235,913

795,8192,180,939843,836

1,326, 753509,524460,317

1,883,019447,233434,857306,105163, 290

1, 301, 722

801,0242,230,372869,084

1,354, 620513,875

1,883,018466,253441,449314,084167,330

1,322,578

813,1272,251,868876,312

1,364,418516,626446,715

1,883,284467,704440, 772320,650171, 024

1,340,365

820,8182,283,991875,945

1,379,613518,652441,056

1,892,013472,818439,126319,296169,159

1,357,039

721,6312,063,332783,880

1,299,175492,908386,835

1,762,222432,651441,252305,752163,780

1, 240,735

18,500,007 18,366,114 18,260,997 18,013,689 17,503,151 10,653,414 10,802,607 .10,892,865 10,969,526 10,094,153

1,813,1891,160,0172,419,65013,107,151

1, 720,8261,158,9922,405,81413,080,482

1, 724, 3731,157,6602,399,21612,979, 748

1,701,0221,140,1392,367,20712, 805,321

1,663,4851,086,0082,225, 26412,528,394

1, 750,1551,113, 5082,136,3705,653, 381

1,761,6951,129,9722,169, 0455, 741,895

1,774,5431,143,5792,181,0375,793, 706

1,781,5951,147,1342,192,2715,848,526

1,684,8161,079,7432,048,3735,281,221



STATE BANK AND TRUST COMPANY MEMBERS—EARNINGS AND DIVIDENDS

Gross earnings of State bank and trustcompany members totaled $394,70Q,000 forthe six months ending December 31, 1925,compared with $356,600,000 for the corre-sponding period of 1924, an increase of$38,100,000. Of the total earnings, $312,-500,000, or aboutx 80 per cent, representedinterest and discount on loans and invest-ments. Total expenses for the six-monthperiod amounted to $281,700,000, an increaseof $22,400,000 over the last six months of1924. The principal increase in expensesoccurred in salaries and wages and in intereston deposits, which now constitute 27.4 percent and 47.3 per cent, respectively, of totalABSTRACT OF EARNINGS AND DIVIDENDS REPORTS FOR THE LAST SIX MONTHS OF 1925, BY FEDERAL RESERVE DISTRICTS


expenses. Losses charged off amounted to$34,200,000, of which $21,000,000 was onloans and discounts and $7,700,000 on bonds,securities, etc., while recoveries on assetspreviously changed off totaled $12,200,000.Net additions to profits amounted to $91,000,-000, or 13.1 per cent of capital and surplus,the average rate ranging from the maximumof 16.8 per cent for banks in the New Yorkdistrict to 3.7 per cent for banks in the Minne-apolis district with a net loss shown for banksin the Dallas district. Dividends paid aggre-gated $54,600,000, or 7.8 per cent of paid-incapital and surplus.

Capital stock paid inSurplus fund

Total capital andsurplus....

Gross earnings:Interest and discount- _Exchange and collec-

tion charges. _._Commissions0 ther earnings

Expenses:Salaries and wages _-Interest and discount

on borrowed money. _Interest on depositsTaxes.0 ther expenses

Total expenses

Net earnings since last re-port

Recoveries on charged-offassets

Total net earningsand recoveries

Losses charged off:On loans and discounts.On bonds, securities,

etc. . .Other losses ._

Total losses chargedoff

Net addition to profits.....Dividends declaredRatio of dividends declared

to capital stock (annualbasis), per cent

Ratio of dividends declaredto capital and surplus(annual basis), per cent..

Ratio of net profits to capi-tal and surplus (annualbasis), per cent

Dis-trict

No. 1(38

banks)

37,27540,926

78,201

19, 024

59451

3,276

22,810

4,014

1939,4521,1882,394

17,241

5,569

1,056

6,625

1, 509

519304

2,332

4,293

2,578

13.8

6.6

11.0

Dis-trict

No. 2(146

banks)

250,309224,419

474,728

103,133

5428,588

25,224

137,487

25,701

1,44443,2186,051

15,437

91, 851

45,636

4,955

50,591

6,378

3,0251,223

10, 626

39,96521,957

17.5

9.3

16.8

Dis-trict

No. 3(82

banks)

44,25278,939

123,191

15,980

30169

4,865

21,044

3,906

2885,9861,0892,278

13, 547

7,497

1,110

8,607

248

1,260187

1,695

6,9123,969

17.9

6.4

11.2

Dis-trict

No. 4(115

banks)

85,815106,904

192,719

38,547

91410

9,182

48,230

8,765

68818,0562,2455,021

34, 775

13,455

495

13,950

1,830

925824

3,579

10,3716,086

14.2

6. 3

10.8

Dis-trict

No. 5(56

banks)

18,97813,604

32,582

5,993

64233896

7,186

1,563

3012,163

490926

5,443

1,743

246

1,989

732

70123

925

1,0641,067

11.2

6.5

6.5

Dis-trict

No. 6(114

banks)

30,50119,221

49,722

10,968

507569

2,733

14,777

2,750

4543,8981,0112,233

10,346

4,431

395

4,826

2,041

215462

2,718

2,1081,863

12.2

7.5

8.5

Dis-trict

No. 7(346

banks)

115,190113,039

228,229

56, 527

6312,0549,495

68, 707

13,864

50324,0583,4998,158

50, 082

18, 625

1,589

. 20, 214

3,093

598618

4,309

15,9057,945

13.8

7.0

13.9

Dis-trict

No. 8(129

banks)

40,09024,443

64,533

13,884

513607

3,068

18, 072

3,573

7795,2081,2862,342

13,188

4,884

408

5,292

1,436

237245

1,918

3,3742,028

10.1

6.3

10.5

Dis-trict

No. 9(85

banks)

5,7872,437

8,224

2,294

6279

206

2,641

577

16985116285

1,979

662

85

747

503

1278

593

154173

6.0

4.2

3.7

Dis-trict

No. 10(33

banks)

8,7253,341

12,066

3,189

2523

1,039

4,276

915

321,343• 244

799

3,333

942

95

1,037

348

8267

497

540513

11.8

8.5

9.0

Dis-trict

No. 11(127

banks)

7,4002,476

9,876

1,876

11625

139

2,156

669

80316131370

1,566

590

61

651

435

19245

699

148257

6.9

5.2

Dis-trict

No. 12(165

banks)

82,42036,847

Total, six months ending

Dec. 31,1925

(1,436banks)

726,742666,596

119,2671,393,338

41,057

250167

5,796

47,270

10,898

62818,5681,9646,255

38,313

8,957

1,754

10, 711

2,498

7221,098

4,318

6,3936,171

15.0

10.3

10.7

312,472

2,89013,37565,919

394,656

77,195

5,406133,25119,31446,498

281,664

112,991

12,249

125,240

21,051

7, 6845,474

34,209

91,03154, 607

15.0

7.8

13.1

June 30,1925

(1,466banks)

716,871632,543

1,349,414

287,771

2,6298,226

65,217

363,843

71,790

3,376127,42416,45244,356

263,398

100,445

6,435

106,880

15, 596

3,7513,274

22,621

84,25946,755

13.0

6.9

12.5

Dec. 31,1924

(1,539banks)

702,970619,212

1,322,182

279,485

2,8018,894

65,402

356, 582

72,424

2,783124,088*17,97641,975

259,246

97,336

7,623

104,959

22,435

5,9176,220

34,572

70,38749,003

13.9

7.4

10.6

1 Loss.


368 FEDERAL EESERVE BULLETIN MAY, 1926

DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN SELECTED CITIESMONTHLY SUMMARY FOR BANKS IN 141 CITIES


Federal reserve districtNumber

ofcenters

1926

January February- March

1925

January February March

No. 1—BostonNo. 2—New YorkNo. 3—Philadelphia..No. 4—ClevelandNo. 5—RichmondNo. 6—Atlanta _.No. 7—ChicagoNo. 8—St. Louis.No, 9—Minneapolis..No. 10—Kansas Ci ty . .No. 11—Dallas.No. 12—San Francisco.

Total - - - - -

New York CityOther cities

2,814,56831,406,7622,262,2122, 708,317

1,337,7865, 849, 7861,342, 698

685, 6861,221,264

661,1343,002,325

2,175,11425,533,6661,892,2792,157,107

723,1401,118,0985,033,0171,123, 586

599,1451,038,821

563, 6472,934, 783

2,606,60933,8-54,8132,324,2952,472, 654

799,9541,311,8916,055,0201,259, 111

694, 6371,208, 936

612, 7463,268,963

2, 685,49128, 500,6162,173,0912, 511,678

767,2531,201,1075,490, 7471,306, 725

731,3071,211,359

658,9632, 720, 698

2,157,34723, 574, 730

1, 780,0712,048,430

675,206976,073

4,479,4751,074, 542

637,5531,024,111

572,8692,495,365

141 54,118,534 44,892,403 56,439, 629 49,959,035 41,495,772

1140

30, 537, 75123, 580, 783

24,812, 70520,079, 698

33,005, 53723,434,092

27, 681,89422, 277,141

22,924,38618,571,386

2,279,81727,165,0072,105,7102,284,925

739,3781,120,9085,451,9051,160,242

748, 6031,169,701

612,140

47,601,032

26,382,21321,218,819


No. 1—Boston. _._No. 2—New YorkNo. 3—PhiladelphiaNo. 4—ClevelandNo. 5—RichmondNo. 6—AtlantaNo. 7—Chicago.—No. 8—St. LouisNo. 9—MinneapolisNo. 10— Kansas City i____-No. 11—Dallas iNo. 12—San Francisco

T o t a l . . . .

Num-ber ofcen-ters

161418222324371417301528

258

WEEKLY SUMMARY FOR BANKS IN 25£[In thousands of dollars]

CENTERS

1926 | 1925

Mar. 24

583,4467,050,207

569,860630, 677295, 502292, 677

1, 372, 698295, 533167,100287,127162,549707,012

12,414,388

Mar. 31

629,0947,998,700

570, 567670,948294,471283,034

1,430,453298, 231162,596283, 307143, 977673, 502

13,438,880

Apr. 7

750,3107, 530,372

577,816721, 542330,189347, 629

1, 383, 513338,254177,192316,258161,133746, 688

13, 380,896

Apr. 14

599,3786,347,353

628, 638771,403313, 866286,491

1,298, 315302, 506177,198295,805149, 063714,022

11,884, 038

Apr. 21

688,1267,012, 507

569,433692,191317,032314, 585

1,438, 228313,133176,342303,129150,310722,802

12, 697,818

Mar. 25

540, 5736,209, 215

522,162612,168261,405255,284

1, 282,041270,126168, 659278,814165, 604612, 398

11,178,447

Apr. 1

563,2686,386,042

532, 709690,431307, 735270, 547

1, 353,486277, 512176,803299,146152, 672608,174

U, 618, 525

Apr. 8

588,9195,835,060

528,945648,975309,837262,883

1,228,107318,810191,247299, 023154,371627,353

10,993,530

Apr. 15

594,3975,144,836

495, 083759, 506299,162268, 566

1, 226,184320, 063172, 726292, 886151, 884652,146

10, 377,439

Apr. 22

596,1446,275,210

550,485652, 683296,234273, 770

1, 304, 521297,167177, 613283,672139,953640,421

11,487,873

1 Figures revised to include those for Albuquerque, N . Mex., in the Kansas City district throughout instead of in the Dallas district as hereto-fore, because of the transfer effective April 15 of the counties of Bernalillo and Valencia, N . Mex., to the Kansas City district.

BANK DEBITS FOR FEDERAL RESERVE BANK AND BRANCH CITIES[In thousands of dollars]

No. 1—BostonNo. 2—New York

Buffalo ._No. 3—-Philadelphia. __No. 4—Cleveland

CincinnatiPittsburgh

No. 5—RichmondB altimore ______

No. 6—Atlanta-Birmingham-. .JacksonvilleNashvilleNew Orleans. _ .

No. 7-^-ChicagoDetroit.

No . 8—St. Louis _Little Rock. __!_LouisvilleMemphis

No. 9—MinneapolisHelena

No. 10-r-Kansas CityDenver. __ ._Oklahoma CityOmaha

No. 11—DallasEl PasoHouston •__

No. 12—San Francisco. _& Los Angeles

PortlandSalt Lake Ci ty .Seattle

401,0636,732, 025

76,168437, 757148,29377, 221

214,05727, 33591,28041, 04932,11028, 78419,90374, 396

811, 333235,865166,000

17, 69044, 60333,89580, 712

1,66879,44336,48619,24147,18450, 6777,507

33, 233238,622199,85937,18914,41852,18412,265

443,2557,662,246

79,150429,726171,95289,127

208,95728,67093,43737, 53832,07028,21920, 70273,821

923, 268200,805178,80015,66741,56229,67782,847

1,53771,01338,44420,10946,85742,1777,614

29,279" 245, 445

184,96338,27815,05443,78610,302

545,4457,126,554

92. 353422,252214,31495,406

199,06033,123

106, 35736, 20238,18028,40821,464

120,404 4847,073195,441198, 70017,20247, 63535,91987,4642,158

83,75748,32122,05246,90644,9107,531

34, 088255, 275207, 52543,44717, 66248, 59412,352

410,4296,012, 377

84,275484,928203,919102,890210, 334

29, 568103,85338, 65630, 71027,24120,968«72,909

767, 294202,916168, 300

17, 66646,11933, 66191,3132,115

75, 06038,78920, 73043, 72941,4987,755

29,486233,484199, 208

41, 61116, 26358,23714,934

488,9956, 661,538

83,087426,469169, 02388,470

220,47030,129

101,99944,72136,47028,95619, 67482,178

837,878259, 690178,52320, 09345,12032, 59188,894

1,81889,80837,98921, 63146,09842,9426,731

34,122235, 730206, 28739,42816, 60154,25113, 687

369, 5275,916,853

67,867401, 644127, 28176,590

225, 36427,65371,17737, 31428, 25618,07218,75673,663

797,438184,805150,100

13, 27241, 55230, 78486, 247

1,38277,42237,28019,33146,21054, 7166,978

32, 558206, 314172, 20232,14213,29046, 2899, 712

378, 3036, 026, 815

81, 374393, 849159,04590,176

244, 73630, 294

108,32035, 77030, 74618,69418, 67484,027

861, 216180, 700161, 50013,85438,83230,61090,468

1,84483,90442, 20419,21342,67642,9697,357

29, 774208, 083173,83835,91616,41740,2189,921

393,9505, 512,715

82,197387,672148,33086,698.

212, 57628,394

100,17032,15830,009

, 19,90319, 88674,462

761, 387152,179195,70014,84540,31431, 715

104, 2312,058

85,84743,52118,86145,36345, 6747,154

27,992202, 278182,99838,43915,41940,13810,797

407, 2534,846,987

78,608365,324228,56697, 670

214,44726,389

105,90733,62930, 63219, 22219, 69879, 091

726, 210186,816188, 20015,11052,03331,08890,246

1,78781,77237,79318,80443,95844,2187,325

30,367204,105176,40143,75418,38357,74114,092

406,955,941,520

82,145418,080162,25384,909206,14328,31997,07042,79431,17121,35718, 76873,826

218, 732171,90014,75145,02531,54789,4431,79085,95540,37421,72537,23341,8816,68127,935205,882179, 36237,54620,73445,70112,370


MAY, 1926 FEDERAL RESERVE BUHLETIN 369

MEMBER BANKS AND NONMEMBER BANKS ON PAR LIST AND NOT ON PAR LISTNUMBER AT END OF MARCH, 1926 AND 1925

Federal reserve district:BostonNew YorkPhiladelphiaCleveland -RichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDal las . . .San Francisco

Total

New England States:MaineNew HampshireVermont.MassachusettsRhode IslandConnecticut _ _

Eastern States:New York.New JerseyPennsylvaniaDelawareMarylandDistrict of Columbia-

Southern States:Virginia- _West VirginiaNorth Carolina.South Carolina _GrPor_fiaFlorida

Memberbanks

1926

418883757860594495

1,383622822

1,017850724

9,425

625546

1802066

638336959238913

1881419088

14975

1925

420854741870610505

1,411624870

1,056825749

9,535

625546

1822165

628314947228914

1941409593

16469

Nonmember banks

On par list

1926

245398513

1,073702359

3,7912,0621,1232, 635

758782

14,441

491439708

84

278158657

3216732

22319687227490

1925

243381519

1,077729387

3,8912,1871,3852,730

829835

15,193

491439708

81

274143 •66135

16933

23219799267580

Not on parlist i

1926

10676

1,103622415

1,06720318164

3,981

1049

332231369160

1925

10709

1,10022534694020416459

3,757

969

340264380159

Southern States—Contd.KentuckyTennessee

Mississippi ____ArkansasLouisianaTexas

Middle Western States:OhioIndianaIllinois—-Michigan

Minnesota

Missouri-. _Western States:

North DakotaSouth Dakota. .NebraskaKansas _____MontanaWyomingColoradoNew MexicoOklahoma

Pacific States:WashingtonOregonCaliforniaIdaho . *UtahArizonaNevada _ __

Total..__

Memberbanks

1926

14611712643

11745

777

438262586289185329406199

15912317926511034

13233

377

15313329277461910

9,425

1925

14711712544

12446

747

447267585289187353435191

16512618526312034

14035

407

15613729785492210

9,535

Nonmember banks

On par list

1926

4302122622

24631

706

658821

1,281516610497

1,1991,289

17520173599610253

17428

363

17110731579682624

14,441

1925

4402593425

26941

775

661830

1,302520640590

1,2611, 344

261263765

1,02510558

18933

374

174'11435877653323

15,193

Not on parlist i

1926

2123920127712117595

102193

1925154736

287164176

3129635

3331

4

3,981

1925

1821419626987

17080

81890

1674583133

241155172

41011735

31271

3

3,757

i Incorporated banks other than mutual savings banks.

MONEY IN CIRCULATION[Source: United 8tates Treasury Department circulation statements]


Date Total

3,402,0154,100,5915,628, 4284,337, 4184,993, 5704,776,1674, 725,1914,774,3134, 734, 2364, 719, 5194, 784, 0254,827,0054,900,8394,971,7655,008,1214,739,5374.814.2174,805,885

Goldcoin andbullion

611,545641,794495,353416,282437,971469, 448453, 211437, 612428,102428, 248416,348413,973429,985425, 853424, 037407,148422. 079450,787

/"lr_l_*l first*VJOIU cer*flfiAQfoCtinCal6S

1,026,1491,348,818

231,404171,985933, 688914,968918,862972,438

1,003,2851,014,3111,036,2431, 050, 0571,067,9631,108, 7431,114,3311,035,7741,076,0701,089,003

Standardsilverdollars

70,30070,86389, 72558, 37855,60654, 66654,39853,90854,29454,16554,17354, 69354,76954,68554,86053,16752,63752,147

Silvercertifi-cates

478,602459, 680

60,385268,802389,113371,229376,442380, 681379, 796388, 016396,700394,069390,089388,012387,495370,852371,149365,113

Treasurynotes of

1890

2,4281,9971,6281,5081,4071,3961,3921,3901,3871,3841,3811; 3791,3761, 3751,3731,3711,3691,367

Subsidi-ary

silver

159,966191,351261, 556229,956263,102257,559258,446259,894262, 607261,750264,450267,768269,439272,217274,860266,155265,853267,244

UnitedStatesnotes

337,845330. 353277, 736284,343304, 418285, 780281,043284, 799279,943284,806298, 493303,597306,575305,986292,998288,677293, 622289,044

Federalreservenotes

356,4483,310,2252,115,3501,862,0551,702,2121,676,0781,679,8331,636,1921,601,8841,629,9271,670,6581,706,6221, 741,9651,815,6871,672,2231,672.0271,639,211

Federal

reserveDanKnotes

3,170209,87765,0328,4717,5067,2997,1096,9216,7775,5806,4606,3146,1856,0585,9005,8085,720

Nationalbanknotes

715,180.697,160715,023725, 782737, 739711,403698,020696,649681,709678,178680,730664,351667,707666,744636,422638,270653,603646,249

Totalcircula-tion percapita (indollars)

1914—July1917—Apr.1920—Nov1922—Aug.1924—Dec.1925—Apr. - . „ . .

May 1June 1July 1Aug. 1 . . . .Sept. l - _ .Oct. l-__-Nov. 1. . . .Dec. 1 . . , .

1926—Jan. 1 . . . .Feb. 1 . . .Mar. 1 . . .Apr. 1_.. .

34.3539.5452.3639.4744.0841.9941.5041.8941.4941.3141.8442.1742.7743.3543.6241.2441.8441.73

i The figures for the several classes of money include mutilated currency forwarded to the Treasury for redemption and unassorted currency heldby the Federal reserve banks, and consequently do not add to the total which is exclusive of such currency.


370 PEDBBAL RESERVE BULLETIN MAY, 1926

MONEY RATES PREVAILING IN FEDERAL RESERVE BANK AND BRANCH CITIESThe following table shows the customary rates charged on loans and discounts in the various cities in which

the Federal reserve banks and their branches are located, as reported by representative banks. These ratesare not averages but are those rates at which the bulk of paper of each class is handled by reporting banks.Where it appears from the reports that no one rate clearly covers the bulk of the paper handled, a range of therates most commonly charged is given.

District and city Year and month

Rates prevailing during week ending with the 15th day of the month

Customers' primecommercial paper

30-90days

4-6months

Inter-bankloans

Loanssecured

byLibertybonds

Loans secured byother stocks andbonds

Demand Time

Loanssecured

by ware-house

receipts

Cattleloans

DISTRICT 1

Boston..

DISTKICT 2

New York.

Buffalo..

DISTRICT 3

Philadelphia

DISTRICT 4

Cleveland ___.__.

Cincinnati _ _

PittsburghDISTRICT 5

Kichmond

Baltimore

DISTRICT 6

Atlanta. ______

Birmingham

Jacksonville __.._.

Nashville

New Orleans, _

DISTRICT^

Chicago -- . .

Detroit.

1925—April1926—February.

March.. .April

1925—April.... _1926—February.

March. __April

1925—April1926-February.

March___April.... .

1925—April.....1926—February

March. __April

1925—April1926—February

March.. .April_.._.

1925—April1926—February

March. __April

1925—April. _.__1926—February

March . . .ApriL.,._

1925—April1926—-February

March. _.April . ._.

1925-April1926-February_

MarchApril . . . . . .

1925-April1926-February.

MarchApril _


MarchApril...—


MarchApril

1925-April1926-February,

MarchApril


MarchApril


MarchApril

1925-April.1926-February_

MarchApril

4 -4H4K-54M-54 ^ 5

4 -5

5 -65 -65 -65 -6

5 - 65 -6

5 -6

5 -65H-6

5 -65 -65 -65 -65 -6

65 -65 -64 -7

5H-66

534-65 -65 -65 -65 -6

5 -64^-64^-65 -6 5 -5;

4^-54^-5

534-6

5 -64 ^

3H-4H4i/

5 -65 -65 -65 -6

4555

5 -6

5 -6

5 -6

5 -5

5 -65 -65 -85 -8

5 -85 -75 -86 -8

5 -65 -65 -65 -6

43^-54^-54^-54^5

^ 55 -5M5 -65 -65 -65 -6

5 -6666

5 -6666

5 -6

55

5 -65 -64M-8

6 -7

5 -85 - 75 -86 -8

53J-65H-65 -65 -65 -65 -6

5-5

5 -6

5 65 -6

5 -55 -5K

666

V55

-6

5 -65 -65 -6

66 -76 -76 -7

514-65H-6

5 -65 -65 -6

5 -65 -6


MAY, 1926 FEDERAL RESERVE BUIiLETIN 371

MONEY RATES PREVAILING IN FEDERAL RESERVE BANK AND BRANCH CITIES—Continued

District and city Year and month

Rates prevailing during week ending with the 15th day of the month

Customers' primecommercial paper

30-90days

4-6months

Inter-bankloans

Loanssecured

byLibertybonds

Loans secured byother stocks andbonds

De mand Time

Loanssecuredby ware-

housereceipts

Cattleloans

D I S T R I C T 8S t . Louis •__.: ...

Little Rock.

Louisville..

DISTRICT 9

Minneapolis __

Helena-

DISTRICT 10

Kansas City- _.

Denver

Oklahoma City

Omaha..

1925—April.-.1926—February __

March. .April- -----

1925—April . . . .1926—February-

MarchApril . . .

1925—April..—.. -1926—February __ . . _.

March. .April -—

1925—April-1926—February.

MarchApril- _.-..

1925—April.1926—February-

MarchApr i l . - . . .

DISTRICT 11

Dal las . . . . ,

El Paso

Houston

DISTRICT112

San Francisco .

Los Angeles

Portland

Salt Lake City. . .

Seattle

Spokane.. . .

1925—April1926—February __ . -_ . . - -

M!arch-«--_A p r i l - - . — -

1925—April--..1926—February _ _

MarchApriU.

1925—April....,-1926—February

March —._April

1925—April . . .1926—February _

MarchApril

1925—April....1926—February .

MarchApril

1925—April........ •_.1926—February

March . . . .April . . . .

1925—April..1926—February

March. . .Apri l . . . . . . . ,_


MarchApril


MarchApril.... __


MarchApril

1925—April-... _1926—February.

MarchApril

1925—April1926—February..

March . . . .Apri l . . . . . .

1925—April.1926—February-

MarchApril

4K-54M-5

5 -6

5 -66 -7

6 -7

4 -64H-64M-64M-6

A5 -5V25 -5K5 -5H6 -86 -7

86 -75 -65 -653^-65 ^ 66 -76 S1/6 -63/

6

6 -76 -76 -76 -7

66

5 -64 -64 -65 -66 -86 -86 -76 -75 -65 -65 -65 -6

5 -65 -6

55 -6

66

6 -76

6 -7

5 -75 -7

6 -76 -7

5 -65 -65 -65 - 65 -6

5 -65 -65 -65 -65 -6

5 -66

55

5 -65 -6

5 -64 -74 -64 -6

6 -86 -86 -8

65 -65 -65 -6

5 - 65 -65 -65 -66 -76 -76 -76 -76 -7

66 -86 -8

666

6 -76 -76 -7

6

5 -65 -65 -65 -65^-65M-75M6

4 -6

5 -76 -75 -6

5 -75 -65 -65 -6

5 -6

5 -65V2-6

6 -76

6 -76 -7

-766

64 -7

75 -7

-7

56

6 -8

5 -65 -65 -65 -6

5K-66 -7

5 -86 -76 -7

68

6 -88

6 -85 -75 -65 -65 -6

5 -66

6 -76 -76 -76 -76 -7

6

6 -76 -7

76 -8

6666

6 -76 -7

77

5434-65 - 6

6 -76 -76 -76 -7

6

5 -65 -65 -65 -66 -86 -8

6 -76 -76 -76 -7

6666

5 -8

7 -8

5 -85 -65 -65 -6

5 -66

6 -76 -76 -76 -7

76 -76 -76 -7

77

6 -86 -8

7777 '

6 -86 -76 -7

7

5 - ((

5 - (

- 7

6 - 76 - 753^-75 K 76 - 86 - 7

7 - 8

76 - 7

6 - 7

7 - 86 - 86 -10

8 - 97 - 86 - 86 - 8

- 77

6 - 6k6 - 6̂ i

66

7 - 87 - 87 - 87 - 8

6 - 76 - 76 - 7


372 FEDERAL. RESERVE BULLETIN Y, 1926

GOLD AND SILVER EXPORTS AND IMPORTS

EXPORTS FROM AND IMPORTS INTO THE UNITED STATES, DISTRIBUTED BY COUNTRIES

Country of origin or destination

GOLD

All countries

FranceGermany. _ ___Netherlands -Poland and Danzig.__ _SpainSweden... . .EnglandCanada -_Central AmericaMexico _» • .. .West IndiesArgentinaBrazilChileColombiaEcuadorPeruUruguayVenezuela _ >British IndiaBritish Malaya-ChinaDutch East Indies.—HongkongJapan ___Philippine IslandsAustraliaNew ZealandEgypt _.. _.Portuguese AfricaAll other .

SILVER

'' All countries

FranceGermanvPoland and DanzisSpain -EnglandCanada

MexicoWest IndiesBoliviaChileColombiaPeruBritish IndiaChina .-Dutch East Indies _HongkongPortuguese AfricaAll other . . _

March

Exports

1925

$25,104,416

15,120, 000

40,000

50,00059,385

461, 28960,000

5,050,00022, 500

200,00062, 70778,125

30,0001,112, 500

2, 757,910

7,916,717

1,218,005

1,152,382139,174

1, 550245,561

5,795

4,597,701521,998

34, 551

1926 .

$4, 224, 564

348,404

52, 659200,000727,86066, 56551, 00015,000

300,00022,300

535, 039250, 655

1,355,082 #

300,000

8, 333,081

119,884

168,932

40,2058,865

1,46439,965

3,268, 3894,685,377

Imports

1925

$7,337,322

2,935,4562, 777,195

176, 209513,15445,442

4,99784, 501

144,044187,077

27,604

13,950

189, 538

153,891

33, 6187,260

42,955431

6, 660, 750

73,996

4344,682

880, 597290,183

3,766, 61813,9529,216

192, 2529,478

1, 263, 24455,968

71,303

14,27414, 553

1926

$43, 412, 576

19,34335

2,13139, 278, 094

144,913531,24218,604

277

2, 503,153143, 72497,011

185,461

84,493

177, 774

185, 508

15, 721

19,4985,594

5, 539, 071

1,571

33,581844

377,785116, 219

3,541,29412,1528,522

158,3453,370

1,132,061

80, 589

28,16244, 576

Three months ending March

Exports

1925

$149,230,067

1,339,20845,130,3364,318,3431,103,948

80,0001, 232,7286,159, 602

178,036

1,201,481151,000

5, 260, 00042, 500

15,000

802,290200,000

52,757,093178,625

80,0002, 594,105

25,905,032

498, 240

2,500

26,142, 028

1,236,000

5, 302, 775359,989

14, 215634,30233,840

12,478, 6985,223,363

823,935

34,911

1926

$11,162,808

18,488889, 261

146,3231,214,4911, 741, 075

120, 614102,000105,000

5,983

1,600,000376, 810

1,852,788250,655290,220

2,147,335

301,765

25,848,400

4,981420,981

102,460475,745

2, 600401,48121,220

1,464475, 575

12, 082,25511,858,547

1, 091

Imports

1925

$15,977,649

71,046100

21,387

3,064,7778,309,886

399,9351,424,874

105, 651

4,997123,082445,347262,164389, 693

57,374

13,95020,055

472,872

444,22276, 50433, 6188,891

208,09219,132

18,928,225

105,141974

44,89524,780

2,049,961434,918

11,877,88348,15310,988

478, 29122,421

3,479, 05155,9684,108

171,170

39,411•- 80,112

1926

$88,179,43a

70,94035a

27,60a372

9,70a66,943,132

464,755>1,355,840

49, 248277

12, 293,102331,033290,510975,458-

140,221

501,40&

4,000,000546,861

8,05143,2152,857

110,645«13,849>

20,164,962;

112,7924,137

48,30420,462

1,075, 571453,69&

10,292,39528,84310,939

531, 63227,086

7,174, 525

270,986-

44, 51069,084



FOREIGN EXCHANGE RATESfNoon buying rates for cable transfers in New York as published by Treasury. In cents per unit of foreign currency.]

Countries

Austria-BelgiumBulgariaCzechoslovakiaDenmarkFinland .France _ _____GermanyGreat BritainGreece __HungaryItalyNetherlandsNorway. .Poland . -Portugal..RumaniaSpain..SwedenSwitzerlandYugoslaviaCanadaCubaMexico.ArgentinaBrazilChileUruguayChinaChinaHongkongIndiaJapanS traits Settlements

Monetary unit

Schilling . . .FrancLevCrownKrone __Markka.Franc..-..-- __'_ReichsmarkPoundDrachma _ _Pengo...Lira __ _FlorinKrone _ _ZlotyEscudoLeuPesetaKronaFrancDinarDollarPesoPesoPeso (gold)MilreisPesoPesoMexican dollarShanghai taelDollar.-RupeeYenSingapore dollar.

Parof ex-

change

14.0719.3019.30

26.802.52

19.3023.82

486. 6519.3017. 4919.3040.2026. 8019.30

108.0519.3019.3026.8019. 3019.30

100.00100.0049.8596.4832.4412.17

103.42M8 111 66,85i 47> 77

48.6649.8556. 78

April, 1926

Low

14. 0530

High

14. 08803.3800 3. 8700

. 7208 - 72632. 9615 2. 9622

26.1600 26.20002. 5198, 2. 52203. 2900 3. 5000

23.8000 23.8100485 9300 486. 3800

1. 2367 1. 327817.5400 17.61004.0200, 4.0200

40 0900 40 210021.4200; 21.940010.3000 12 60005.1300 5.1500

378414.110028 770019. 2800

1. 760399. 794899 858148. 550089. 960013. 730012 0300

101. 600050 550069. 350053. 4.80035. 970045. 880056. 4200

415914. 500026 820019. 33001. 7615

100.161199 956348. 716792.160014. 430012 1800

103. 520053 400072. 050055. 710036. 280047. 430056. 6700

Low

14. 05103.6900

.71562.9616

25.90002. 52113,4300

23.8000485. 7300

1.314817. 53004. 0000

40.020021.120012. 41005.1100. 4111

14. 080026. 800019. 2400

1. 760399.411199.887548. 483388. 070014. 080012. 0300

101. 550052. 230072. 290055. 730036. 300044. 820056.4600

March

High

14.07504.5400

.72592. 9621

26.26002. 52233,7300

23.8100486. 2700

1. 418217. 59004.0200

40.100021. 830013.16005.1600.4394

14.100026.820019.2600

1. 762899.8353

100. 018848. 683392. 550014.740012 1400

103. 080053. 900073. 040057.570036. 730045. 940056. 7500

, 1926

Average

Rate

14.06074.2341

.72042.9618

26.11302. 52163,5804

23.8030486. 0825

1.374417.55524.0156

40. 068921.467012. 68885.1330.4234

14.093326.812519. 25181.7611

99. 630199. 954248. 558590. 333314.489312. 0815

102.181852. 846672.711856. 313036. 575645. 391556. 6256

Percent

of par

99.9321.943.73

97.44100.06

18. 5599.9399.887.12

100.3720, 8199.6780.1065.754.752.19

73.02100. 0599.759.12

99.6399.9597.4193.6344. 6699.2798. 80

109.85108. 77117. 8875.1791.0699.73

Low

14.04705,0100.7313

2. 964317.85002. 52005,0500

23.8000476.2000

1.4833

3. 990039.830015.230019.18004.8900

.469114.170026. 940019.22001.5821

99.834399.890649. 333387. 380010. 640010. 770094. 340053. 230072.850053. 770035.450039. 600054. 6700

March

High

14.07605.1500.7357

2. 969418.34002. 52395.3200

23.8000478.8600

1.6321

4.140039. 990015.830019. 20004.9500

. 497914. 280026. 960019.29001.6191

99. 9081100. 025050.033390. 630011.170011.420096. 590054.400074.440054.880035. 760041. 800055. 7500

,1925

Average

Rate

14.05835.0662.7335

2.966518.06922. 52145.1807

23.8000477. 6250

1. 5484

4. 071939. 921215.434619.18314.9296

. 486614.221926. 949619. 26461.6006

99.871499.950449. 743989. 711511.038111.098595. 314653. 648873. 361254. 269235. 666240. 966955.1008

Percent

of par

99.9226.253.80

67.4213.0626.8499.9298.158.02

21.1099.3157.5999.394.562.52

73.69100. 5699.828.29

99.8799.9599.7992.9834.0356.8392.16

111. 51109. 74113. 6173.3082.1897.04

11913 average.SILVER

[Average price per fine ounce]

London (converted at average rate of exchange).New York____ . . . .

April

$0.65009.64760

March

$0.66340. 66223


374 PEDEEAL BESEKVE BULLETIN MAY, 1926

DISCOUNT RATES OF FEDERAL RESERVE BANKS IN EFFECT MAY 1, 1926


Paper maturing—

Within 90 days

Commercial,agricultural,and livestockpaper, n. e. s.

Secured byUnited StatesGovernmentobligations

Bankers'acceptances

Tradeacceptances

After 90 days butwithin 9 months

Agriculturaland livestock 1

paper

BostonNew YorkPhiladelphia-.Cleveland _._.EichmondAtlantaChicago __.St. LouisMinneapolis. _Kansas City..DallasSan Francisco

4444444444

4444444444

4444444444

4444444444

1 Including bankers' acceptances drawn for an agricultural purpose and secured by warehouse receipts, etc.Changes during month.—Discount rate at Federal Eeserve Bank of New York from 4 per cent to 33^ per cent on April 23.

GOLD SETTLEMENT FUNDINTERBANK TRANSACTIONS FROM MARCH, 18, 1926, TO APRIL 21, 1926, INCLUSIVE



Transfers

Debits Credits

Transit clearing

Debits Credits

Federal reservenote clearing

Debits Credits

Changes inownership of goldthrough transfersand settlements

Decrease Increase

Balancein fundat close

ofperiod

Boston..New YorkPhiladelphia. _.Cleveland .Richmond.-__.AtlantaChicagoSt. LouisMinneapolis. _.Kansas City...Dallas . „ .San Francisco..

Total five weeks ending-Apr. 21, 1926 . . . .Mar. 24, 1926Apr. 22, 1925Mar. 25, 1925... ...

36,000

30,00017, 00010,00022,00027,0002,0006, 0005,0004,00010,000

149,000

1,0001, 000

15, 0001,000

5,000

1,094,1073, 689, 422-952,235846,810748,902483,945

1, 656,434669,485213,747497,859304, 781410,477

1,137, 3593,622,266984,187859,654742, 246531,165

1, 644, 651661,364202,970476,420300,265405,657

5,3348, 2336,0637,6053,6364,8124,1531,2472,0742,5481,6433,208

13,490024,8983,0524,3906,7663,4171,3281,9171,7342, 654

6,86316,240

4,80487,101

913

21,1706,95117,52325,0708,42515, 374

24, 798

169, 000274,700121, 700148, 300

169,000274,700121, 700148,300

11,568, 20411,060,578

i 10,141, 0851 10,497,817

11, 568, 20411,060,578

i 10,141, 085i 10,497, 817

50, 55650,807

50, 55650, 807

117, 616 117,616

53,070206,75445,34453,31523,48722,145133,5388,31714,42421,88011,89023,715

617,879713,203632,338619,703

i Includes Federal reserve note clearing,


INDEX

Acceptances:Banks granted authority to accept up to 100 per c n of capi-

tal and surplus _.__ - 334Held and purchased by Federal reserve banks _.- 362,363Market for __ — _ — 311

Agricultural credit banks, loans of _ _ _ _. 312,329Agricultural movements, index of _ _ _ 336Agriculture, monthly statistics.._. __._r 313Annual reports:

Bank of Poland.. . _____ _. 344Federal Farm Loan Board _ __._ 329German Keichsbank ____ 340

Automobile industry _ ___. 321Bank debits . __ _. 368Bank of Poland, annual report of_. ___ _. _ 344Bank suspensions __ __•___ - 326Bankers' balances in Federal reserve bank cities.__ 365Boundaries of Federal reserve districts 10 and 11, changes in 332Broke s, loans to. ___ 365Buffalo branch bank building, act authorizing purchase of. __. 333Building statistics __ _ __ _._ 322,337Business and financial conditions:

Abroad__________ ___ 340-356United States ..__ 309-326,335-339

Business failures. __. 325Business indexes of the Federal Reserve Board ,_ _ 310Canada:

Cost of living and retail food prices 356Financial statistics. ; _; 350Foreign trade . 353Wholesale prices _______ 354

Capital issues _ 311Chain stores, retail trade of _ __; 339Charters issued to national banks 334Coal and coke production _ ____ 318Commercial failures 325Commodity movements.-__---__ ___ 337Condition statements:

Federal reserve banks ._ 357Member banks in leading cities 364

Cost of living in principal countries.- 356Cotton:

Raw — -__ 315Manufacturing...- _ ______ 320

Currency in circulation._____ 369Dairy products . . . . - __ ____ 317Debits to individual account _ _ 368Debt funding agreements with France and Yugoslavia._ _ _ 331Department-store business. ____• 339Deposits, time and demand, of member banks. 366Deposits, note circulation, and reserve of Federal reserve banks _ _ 357Discount and open market operations of Federal reserve banks.__ 363Dis ount rates;

Central banks of issue 352Change in, Federal Reserve Bank of New York 308Federal reserve banks 374Prevailing in various centers . 370

Earning assets of F deral reserve banks _____ 362Earnings and dividends of State bank members :____»_______ 367Employment, United States. 325

Index of_ __' 335Factory employment and pay rolls, index of— 336Failures, commercial and bank _ _.__ _. 325F deral farm loan system, loans of, during 1925___ _ ___ 329Federal reserve dis ricts 10 and 11, changes in boundaries of— 332Federal reserve note account _ _______ __ 361Fiduciary power!* granted to national banks _____ 334Financial statistics for principal foreign countries... .--.- 350Food manufacturing 319Food prices in foreign countries.. ____ 356Foreign exchange... . 327,373Foreign trade:

Principal foreign countries. 353United States-__v___ _ .__—. 327,330,353

First quarter of 1926______—_-—__.- 330France:

Cost of living and retail food prices . 356Debt funding agreement. _______ 331Financial statistics._. ----- _ 350Foreign trade _. ~ — _ ~_ 353Wholesale prices.-...——-__-__- 354

Fruits and vegetables ___ 316Germany:

Annual report of the Reichsbank_ 340Cost of living and retail food prices ____ _ 356

Germany—Continued. PageFinancial statistics... __________ ___ 350Foreign trade ______ 353Wholesale prices —__ 354

Gold imports and exports. _ 328,372Gold settlement fund transactions ___ ___ 374Grain and flour __ .__ _ _ 314,337Great Britain:

Financial statistics _.__ 350Foreign trade 353Gold imports and exports 329,372Retail food prices and cost of living.__ _ ___ 356Wholesale prices 354

Hearings on Strong bill for price stabilization ._ 308Imports and expo ts:

Gold and silver.. . -__ - _ __-__ 328,372Merchandise 327

Interest rates prevailing in various centers _ __-. 370Iron and steel manu acturing. ___ 321Law department:

Authority of Congress for purchase of Buffalo branch bankbuilding ______ 333

Changes in law regarding State taxation of national banks. __ 333Leather industry... 322Livestock industry. _. 316Loans to brokers and dealers in securities.._ .... 365Lumber industry 322Mail-order houses, retail trade of 339Manufacturing:

Condition, by industries . . . ._ 319Index of production __ 336

Maturity distribution of bills and certificates of indebtedness.... 361Member banks:

Condition of 364Number discounting __ ____* 363Number in each district •_ :_...,__. 363State banks-

Admitted to system ____ .... 333Earnings and dividends 367

Mineral production, index of __ 336Metals..._______ _____ __. 319Mining. _. 318Money in circulation . 369Money rates •_. __ 311,370National banks:

Change in law regarding taxation of 1 _ _ _ 333Charters issued to —- 334Fiduciary powers granted to ___ 334

Par list, number of banks on 369Pay rolls in factories, index of. _ . 336Petroleum industry _________ •:.. 318Poland, Bank of, annual report of 344Prices:

Food, in principal countries -___ <_____ 356Security 312Wholesale .____ 309,325,354

Production in basic industries, index of 309,335Reichsbank, German, annual report of 340Reserve ratio of Federal reserve banks 357Resources and liabilities:

Federal reserve banks 1 357Member banks in leading cities ___ 364

Rulings of the Federal Reserve Board:Change in boundaries of Federal reserve districts 10 and 11__, 332

Retail food prices —— —— __._• 356Retail trade_____ _-__-____ 324,339Security prices 312Shoe industry 322Silver:

Imports and exports. . . . 372Price of _ ___. 373

State banks:Admitted to Federal reserve system.. 333E arnings and dividends of member banks 367

Stocks at department stores.. .__ 339Taxation of national banks, changes in law regarding 333Textile industry 320Time deposits of member banks 366Tobacco industry 315,337Trade:

Foreign.. _ . „ 327,353Retail___ .— ___-_ 324,339Wholesale 309,324,338

Transportation. _ 323,337Wholesale prices____ 309,325,354Wool and woolen industry. ___. 320

I


FEDERAL RESERVE DISTRICTS

r-4IOWA CH1CA

BOUNDARIES OF FEDERAL RESERVE DISTRICTS

BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES

FEDERAL RESERVE SANK CITIES

# FEDERAL RESERVE BRANCH CITIES

O FEDERAL RESERVE BANK AGENCY


frb_051926

Documents

vice governor

federal reservebulletinmay

assistant secretary

division of bank operations

assistant deputy governor

buffalo branch

baltimore branch

cleveland george