Federal Reserve Bulletin August 1932 - St. Louis Fed · 2018. 11. 6. · FEDERAL RESERVE BULLETIN...

FEDERAL RESERVEBULLETIN

AUGUST, 1932

ISSUED BY THE

FEDERAL RESERVE BOARDAT WASHINGTON

Recent Banking Legislation

Final Act of the Lausanne Conference

Earnings and Expenses of Federal ReserveBanks

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON : 1932

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

FEDERAL RESERVE BOARD

Ex officio members:OGDEN L. MILLS,

Secretary of the Treasury, Chairman.J. W. POLE,

Comptroller of the Currency.

EUGENE MEYER, Governor.

CHARLES S. HAMLIN.

ADOLPH C. MILLER.

GEORGE R. JAMES.

WAYLAND W. MAGEE.

FLOYD R. HARRISON, Assistant to the Governor.

CHESTER MORRILL, Secretary.

E. M. MCCLELLAND, Assistant Secretary.J. C. NOELL, Assistant Secretary and Fiscal Agent.WALTER WYATT, General Counsel.

LEO H. PAULGER, Chief, Division of Examinations.E. A. GOLDENWEISER, Director, Division of Research

and Statistics.CARL E. PARRY, Assistant Director, Division of Research

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.

u

FEDERAL ADVISORY COUNCIL

1 (BOSTON) THOMAS M. STEELE.

2 (NEW Y O R K ) . _ . ROBERT H. TREMAN.3 (PHILADELPHIA) HOWARD A. LOEB.

4 (CLEVELAND) J. A. HOUSE.5 (RICHMOND) HOWARD BRUCE.6 (ATLANTA) JOHN K. OTTLEY.7 (CHICAGO) , MELVIN A. TRAYLOR, Vice President.8 (ST. LOUIS) WALTER W. SMITH, President.9 (MINNEAPOLIS)^ THEODORE WOLD.10 (KANSAS CITY) WALTER S. MCLUCAS.11 (DALLAS) J. H. FROST.12 (SAN FRANCISCO) HENRY M. ROBINSON.

WALTER LICHTENSTEIN, Secretary


OFFICERS OF FEDERAL RESERVE BANKS

Federal Reserve Bankof— Chairman Governor Deputy governor Cashier

BostonNew York.

Frederie H. Curtiss...J. H. Case

Roy A. Young __.Geo. L. Harrison

Philadelphia

Cleveland

Richmond _

Atlanta

Chicago.

R. L. Austin

George DeCamp

Wm. W. Hoxton

Oscar Newton

Eugene M. Stevens...

Geo. W. Norris

E. R. Fancher

George J. Seay _

Eugene R. Black

J. B. McDougal

W. W. PaddockW. R. BurgessJ. E. CraneA. W. GilbartE. R. KenzelWalter S. LoganL. R. RoundsL. F. Sailer _-_Wm. H.Hutt

M. J. Fleming.Frank J. Zurlindefi-C. A. Peple.-.R. II. BroaddusW.S.Johns-.H. F. Conniff..C. R. McKay-John H. Blair.J. H. Dillard,..

St. Louis.. John S. Wood-

Minneapolis. _.

Kansas City...

Dallas

San Francisco..

John R. Mitchell..

M. L. McClure...

C.C.Walsh

Isaac B. Newton

Wm. McC. Martin . . .

W. B. Geery

Geo. H. Hamilton..

B. A. McKinney...

Jno. U. Calkins

O.M.AtteberyJ. G. McConkey—.

Harry YaegerH.I. ZiemerC. A. Worthington...J. W. HelmR. R.GilbertR. B. Coleman..Wm. A. DayIra Clerk _.

W. Willett.C. H. Coe.iRay M. Gidney.1J. W. Jones.iW. B.Matteson.iJ.M. Rice.iAllan SprouUL. Werner Knoke.iC. A. Mcllhenny.W. G. McCreedy.JH. F. Strater.

Geo. H. Keesee.JohnS. Walden,jr.aM. W. Bell.W. S.McLarinJr.iW. C. Bachman.lD. A. Jones.*O. J. Netterstrom.iE. A. Delaney.iS. F. Gilmore.*A. H. Haill.2F.N. Hall.aG. O. Hollocher.iO. C. Phillips.*H. I. Ziemer.Frank C. Dunlop.*J. W. Helm.

Fred Harris.W. O. Ford.*Wm.M.Hale.

i Assistant deputy governor. » Controller.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS

Federal Reserve Bank of—

New York:Buffalo BranchCincinnati branch _Pittsburgh branch

Richmond:Baltimore branchCharlotte branch

Atlanta:New Orleans branch...Jacksonville branchBirmingham branchNashville branch

Chicago:Detroit branch

St. Louis:Louisville branchMemphis branchLittle Rock branch

Managing director

R.M. O'Hara.C. F.McCombs.J. C. Nevin.

Hugh Leach.W. T. Clements.

Marcus Walker.Hugh Foster.John H. Frye.J.B.Fort, jr.

W. R. Cation.

John T. Moore.W. H. Glasgow.A. F. Bailey.

Federal Reserve Bank of—

Minneapolis:Helena branch

Kansas City:Omaha branch. _Denver branch _.Oklahoma City branch-

Dallas:El Paso branchHouston branchSan Antonio branch

San Francisco:Los Angeles branchPortland branchSalt Lake City branch.Seattle branchSpokane branch

Managing director

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

J. L. Hermann.W. D. Gentry.M. Crump.

W. N. Ambrose.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 communication with memberbanks of the Federal reserve system and is the only official organ or periodical publication of theboard. The BULLETIN will be sent to all member banks without charge. To others the sub-scription price, which covers the cost of paper and printing, is $2. Single copies will be soldat 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60;,single copies, 25 cents.

HI


TABLE OF CONTENTS

PageReview of the month—Recent banking legislation 473Changes in foreign central bank discount rates 477Recent legislation on national bank note circulation . 478Report of the Reconstruction Finance Corporation 481Final act of the Lausanne Conference 497Earnings and expenses of Federal reserve banks : 550

National summary of business conditions 482

Financial, industrial, and commercial statistics:Reserve bank credit, gold stock, money in circulation, etc 483-486Member and nonmember bank credit—

All banks in the United States 489All member banks 487-489, 546Weekly reporting member banks in leading cities 490, 547

Brokers' loans : 490Acceptances and commercial paper 491Discount rates and money rates 493, 548Bank suspensions and banks reopened 492, 551-553Member bank holdings of eligible assets (Government securities and eligible paper) 492Security prices, security issues, United States Government securities 494Production, employment, car loadings, and commodity prices 495, 554-556Merchandise exports and imports 496Department stores—Indexes of sales and stocks 496Freight-car loadings, by classes ; 496

Financial statistics for foreign countries:Gold reserves of central banks and governments 505Gold production 506Gold movements 506-508Government note issues and reserves 509Bank for International Settlements 509Central banks 510-512Commercial banks 513Discount rates of central banks 514Money rates 514Foreign exchange rates 515Price movements—

Security prices 516Wholesale prices > — 516, 517Retail food prices and cost of living 517

Law department:Discounts for individuals, partnerships, and corporations under emergency relief act 518Text of emergency relief and construction act 520Text of Federal Home Loan Bank act 527Ruling of Attorney General regarding national bank note issues 535Text of amendment to Revised Statutes authorizing assessments for covering cost of examining

trust departments of banks 537Treasury ruling on check tax, etc 538

Federal reserve statistics by districts, etc.:Banking and financial statistics 544-553Industrial and commercial statistics i 554-557July crop report, by Federal reserve districts 558

IV


FEDERAL RESERVE BULLETINVOL. 18 AUGUST, 1932 No. 8

Emergencyrelief bill

REVIEW OF THE MONTH

New legislation relating to the reserve banksand member banks has been the principal

development in the banking sit-uation in recent weeks. OnJuly 21 the President signed the

emergency relief and construction act of 1932,the text of which is published elsewhere in thisissue.

This act authorizes the ReconstructionFinance Corporation, under certain condi-tions, to make available to States and Terri-tories for the relief of distress a total of notto exceed $300,000,000, the amount advancedby the corporation to bear interest at the rateof 3 per cent. It further provides for loansby the corporation to States and other politi-cal bodies or agencies, and to private corpora-tions, for self-liquidating projects of a publicor semipublic nature, such as bridges, tunnels,docks, and housing facilities in slum areas.In addition, the corporation is authorized tomake loans for the purpose of financing salesof surplus agricultural products in foreignmarkets; to make loans to bona fide insti-tutions to enable them to finance the carryingand orderly marketing of agricultural commod-ities and live stock produced in the UnitedStates; and to create in any Federal land bankdistrict a regional agricultural credit corpora-tion with a paid-up capital of not less than$3,000,000 to be subscribed by the corpora-tion. The aggregate borrowing power of thecorporation is increased from $1,500,000,000to $3,300,000,000, in addition to its subscribedcapital of $500,000,000. The bill also carriesan appropriation of $322,224,000 for author-

ized public works, including $120,000,000 forthe construction of highways.

Of particular interest to the Federal reservesystem is section 210 of the emergency relief

and construction act, whichReserve bank amends section 13 of the Fed-loans to mdi- , i i Tviduals eral reserve act by adding

a new paragraph, as follows:In unusual and exigent circumstances the Federal

Reserve Board, by the affirmative vote of not less thanfive members, may authorize any Federal reserve bankduring such periods as the said board may determine,at rates established in accordance with the provisionsof section 14, subdivision (d), of this act, to discount forany individual, partnership, or corporation, notes,drafts, and bills of exchange of the kinds and maturitiesmade eligible for discount for member banks underother provisions of this act when such notes, drafts,and bills of exchange are indorsed and otherwisesecured to the satisfaction of the Federal reserve bank:Provided, That before discounting any such note,draft, or bill of exchange for an individual or a part-nership or corporation the Federal reserve bank shallobtain evidence that such individual, partnership, orcorporation is unable to secure adequate credit accom-modations from other banking institutions. All suchdiscounts for individuals, partnerships, or corporationsshall be subject to such limitations, restrictions, and reg-ulations as the' Federal Reserve Board may prescribe.

This amendment introduces a new elementinto the operations of the Federal reserve sys-tem by extending the power of the reserve banksto make discounts, which previously had beenlimited to paper offered and indorsed by mem-ber banks or by Federal intermediate creditbanks (or, in the case of notes secured byadjusted service certificates, by nonmemberbanks), to include authority, in unusual andexigent circumstances, to discount paper di-rectly for individuals, partnerships, and corpo-

473


474 FEDERAL RESERVE BULLETIN AUGUST, 1932

Conditions ofthe loans

rations. This power, however, can be exercisedby a reserve bank only upon authority grantedby affirmative vote of not less than five mem-bers of the Federal Reserve Board, and for suchperiods as the Federal Reserve Board maydetermine.

The paper so discounted must conform to therequirements of eligibility laid down in the

Federal reserve act and the reg-ulations of the Federal ReserveBoard. It must be paper cre-

ated for the purpose of financing the currentoperating requirements of commerce, industry,or agriculture, and not for investment or forcapital purposes, and its maturity must notexceed 90 days, except in the case of agricul-tural paper, which may have a maturity not toexceed 9 months. Furthermore, the paper dis-counted under this amendment must be bothindorsed and otherwise secured to the satis-faction of the Federal reserve bank. Beforediscounting paper under this amendment, more-over, the Federal reserve bank must obtainevidence that the individual, partnership, orcorporation offering it is unable to secureadequate credit accommodation from otherbanking institutions. The rate to be chargedon such discounts, as on other discounts of thereserve banks, is to be established by the Fed-eral reserve banks, subject to the review anddetermination of the Federal Reserve Board.

In a circular on the subject of this amend-ment, which is printed elsewhere in this BULLE-TIN, the Federal Reserve Board authorized allFederal reserve banks, for a period of sixmonths beginning August 1, 1932, to discounteligible paper for individuals, partnerships, orcorporations.

It is apparent that the safeguards prescribedby the law and the board's circular for theexercise by the Federal reserve banks of thisnew power are adequate to protect the liquidityof the assets of the Federal reserve banks. Therole that this new power of the Federal reservebanks, which is possessed by most banks ofissue, will play in the operation of the Federalreserve system and in its relationship to mem-ber banks and to the public will depend on

many circumstances and can only be deter-mined by experience.

Another recent law is the Federal Home LoanBank act approved July 22, 1932. This law,

the text of which is printed else-w h e r e i n t h i s

BULLETIN, pro-vides for the organization of

from 8 to 12 Federal home loan banks, eachwith a capital of not less than $5,000,000 sub-scribed by institutions eligible for membership,or, if such subscriptions are not adequate, bythe Secretary of the Treasury out of a fund notexceeding $125,000,000 to be provided for thatpurpose by the Reconstruction Finance Cor-poration. These banks will have authority tomake advances to building and loan associa-tions, savings banks, insurance companies, andsimilar institutions, and in certain circum-stances to individuals, on the security of firstmortgages on dwelling-house property the valueof which does not exceed $20,000. Such ad-vances may not exceed 60 per cent of theunpaid principal of amortized mortgages, or 50per cent of the unpaid principal of othermortgages. The home loan banks will haveauthority to increase their loaning power byissuing their own obligations on the securityof the mortgages in their possession.

From the point of view of the Federal reservesystem, the most important provision of the

Home Loan Bank act, however,i s contained in section 29, whichhas no relation to home mort-

gages, but extends for three years the circula-tion privilege, now possessed only by certainlimited issues of 2 per cent bonds, to all bonds ofthe United States bearing interest at a rate notin excess of 3% per cent.1

Prior to the passage of this law the circula-tion privilege was possessed by only three issuesof United States Government bonds and wasutilized practically to the full extent author-ized by law. These issues all bear interest at2 per cent and are callable by the United StatesTreasury at the present time. Under the old

1 A detailed discussion of national bank note circulation authorizedunder the old and the new law appears on p. 478. A ruling of theAttorney General on the retirement of national bank notes at theend of three years and on the condition of their issue is given on p. 635.


AUGUST, 1932 FEDERAL RESERVE BULLETIN 475

law the limiting factor on national bank notecirculation was the availability of Governmentsecurities having the circulation privilege, butunder the recent act, in view of the existence ofan additional $3,000,000,000 of bonds thatqualify under the interest rate provision, thelimiting factor is in the provision of the nationalbank act that a national bank shall not issuenotes in excess of its paid-in capital. On June30 of this year the capital of national bankswas $1,570,000,000 and their liability fornote circulation was $650,000,000, leaving$920,000,000 as the maximum amount of addi-tional notes that the national banks could issueunder the recently acquired authority.

The distribution of the potential issue ofnational bank notes on June 30, 1932, amongnational banks in different classes of cities isshown in the following table:

UNUSED ISSUING POWER OF NATIONAL BANKS[In millions of dollars. Figures are for June 30,1932]

All national banks..New York City banks.—.Chicago banks __.Other reserve city banks...Country banks 2

Paid-incapital

1,569

30532538695

Liabilityfor

nationalbanknotes

652

0)33

177442

Unusedissuingpower

91727231

360253

1 Less than $500,000.2 Includes 5 national banks in Alaska and Hawaii.

These figures indicate that national banksin New York City and Chicago have madelittle use of their circulation privilege, and forthat reason have the power to issue a relativelylarge volume of notes under authority of thenew law. National banks in reserve cities alsohave a relatively small amount of notes out-standing and could issue a large additionalamount, while country banks, having $440,-000,000 of notes outstanding, could issue anadditional $250,000,000 under the new law.

Under the old law the margin of profit innational bank note circulation was narrow,

when allowance is made forthe one-half of 1 per centannual tax, the loss of interest

on the funds placed in the redemption fund,the cost of printing and shipping the notes, and

Profit on noteissues

able use

the premium paid on the bonds. The Comptrol-ler of the Currency estimates the banks' netprofit on their circulation at approximately one-half of 1 per cent. Under the terms of the newlaw, however, the margin of profit is considerablyincreased by extending the circulation privilegeto bonds bearing higher rates of interest.

National banks that have a considerablevolume of excess reserves, as is the case with

many at the present time, areExtent of prob- not likely, under existing con-

ditions, to issue a large amountof notes under the new authority

and thereby further increase the volume oftheir idle funds. Use of the note-issue privi-lege at present is likely to be made by banksthat are borrowing from the reserve banks orelsewhere on United States Government secur-ities as collateral, since such banks can issuenotes at a low cost to retire indebtedness bear-ing interest at a higher rate; and by banks thatare out of debt and see a possibility of improv-ing their cash position or of increasing theirearnings by issuing additional notes. Banksthat have already issued notes up to 100 percent of their capital, however, and banks thatare in debt and have no United States Govern-ment securities can make little or no use of theprivilege at present.

When business conditions improve and banksfind opportunities to increase the volume oftheir loans and investments, however, theymay be expected, in accordance with the usualcustom of commercial banks, to make use ofall the funds that are available to them, andconsequently to avail themselves of the addi-tional note-issue privilege to the full extentauthorized by law.

In considering what effects the new note issueprivilege conferred on the national banks will

have on the Federal reserve sys-Effect on Federal tern, it will be apparent thatreserve system t h e immediate effect will be on

the composition of the currencyrather than on its total volume. Under theFederal reserve system money in circulationhas fluctuated in response largely to changes inretail trade and the volume of wage payments,



except during the recent period of bankingdisturbances, when there has been an addi-tional large demand for currency for hoarding.At present the volume of currency outstandingis larger than at any previous time. Additionalissues of national bank notes, therefore, will nottend to increase the total volume of money incirculation, but are likely to result in a substi-tution of this kind for other kinds of currency,and particularly for Federal reserve notes.Indirectly, however, the ability of nationalbanks to obtain currency without resorting tothe reserve banks will have an effect, not onlyon the volume of Federal reserve currency, butalso, and more importantly, on the position ofthe Federal reserve banks in relation to themember banks and the influence of the Federalreserve system on the general credit situation.It is these other and remoter consequences thatmay in time be expected to be the most impor-tant results of the recent legislation enlargingthe note-issuing privilege of the national banks.

Changes in the gold reserves of the principalEuropean central banks during the latter part

of June and the early part of

^J w e r e s m a l l e r t h a n d u r i n gother recent months. The

chief changes occurred in the central goldholdings of Germany, which were reduced by$17,000,000, and in those of the Netherlands,which were increased by $13,000,000.

GOLD RESERVES OF SELECTED CENTRAL BANKS

[In millions of dollars]

Central bank of—

EnglandFranceGermany...ItalyBelgiumNetherlands.Switzerland.

Date,1932

July 20July 22July 23July 20July 21July 18July 23

Goldreserves

6653,227

180P299361406509

Change from—

Monthbefore

+4+8

- 1 7+2+5

+13+6

Yearbefore

-59+957-143+17

+154+194+298

Preliminary.

Gold reserves of the Bank of England, whichhad been increasing at the rate of abouti* t rv i ,£2,500,000 ($12,200,000) aBank of England ' _ .' \ i

week, increased at a slower rateduring the month ending July 20, the increasetotaling £863,000 ($4,200,000) for the period.During the same period the amount of foreignexchange held by the bank declined, "othersecurities," which includes the bank's holdingsof foreign exchange, falling from £82,072,000to £44,917,000. This loss of exchange is to beassociated with the formal establishment onJune 24, of the " exchange equalization ac-count," announced last April, and with theincrease of £36,181,000 in Government secur-ities held by the bank. The equalizationaccount, returns of which are not made public,is administered by the Bank of England onbehalf of the British treasury for the purpose ofbuying and selling gold and foreign currenciesin order to limit fluctuations in the poundsterling. With this account in operation it ispossible freely to transfer assets—includingforeign exchange and Government securities—between the account and the bank.

Government deposits at the Bank of Englandwere reduced during the month. Toward thelatter part of June these deposits were built upin anticipation of the payment of the largevolume of Treasury bills maturing at the end

BANK OF ENGLAND

[In thousands of pounds sterling]

GoldDiscounts and advancesGovernment securities..Other securities. _Bankers' deposits _Public depositsOther depositsNotes in circulation

July 20,1932

136,58414,307

318,60644,91788,02313, 37933, 727

365,759

Change from—

June 22,1932

+863+165

+36,181-37,155+14,374-22,198

+582+7,211

July 22,1931

-12,190+7,208

+39,847+1,315

+27,844- 2 , 994

+963+9, 661

of June, the semiannual report date of the joint-stock banks. Thereafter they were reduced.The funds thus made available were utilized by



the market partly in meeting an additionaldemand for currency but principally in increas-ing bankers' balances at the Bank of England.Short-term money rates on the open market inLondon continued easy.

Bank of France gold reserves in the fourweeks ending July 22 increased by 210,000,000„ , , « francs ($8,000,000), an amountBank of France : ' ' y'

much less than that ol anyother similar period during the past year ofalmost uninterrupted growth in the bank'sholdings. All of this gain occurred early in themonth, while in the latest two weeks the banklost 161,000,000 francs ($6,000,000) of gold.

The outstanding development during themonth, however, was the growth in the depositsof the French Government, accompanied by adecline of a corresponding amount in " otherdeposits/7 in which balances of the Frenchcommercial banks are included. With the

B A N K OF F R A N C E

[In millions of francs]

GoldForeign exchangeDomestic discounts and advancesGovernment depositsOther depositsNotes in circulation

July 22,1932

82,3106,3165,9334,162

23, 21780, 802

Change from—

June 24,1932

+210-16

-711+1, 281-1,404

+135

July 24,1931

+24,417-19,228-2,271-5, 676+8, 596+3,036

exception of the period immediately followingthe issue of French Treasury notes last May,Government deposits are now at the highestlevel since the beginning of February of thisyear. Notwithstanding this loss of funds tothe Government account, the market continuedto repay discounts and advances at the bank.

The German Reichsbank lost 69,000,000reichsmarks ($16,000,000) of gold reserves in

the month ending July 23. Ofthis loss $12,000,000 was in con-

nection with the repayment on July 15 of$15,000,000 of the $125,000,000 credit grantedto the German Government by an internationalsyndicate of bankers in November, 1930. Atthat time members of the syndicate agreed topurchase six months' Treasury bills in the

Reichsbank

amount of $125,000,000 from the GermanGovernment, which was granted the option ofthree renewals, thereby extending the maximumterm of the credit to November, 1932. LastApril, however, the original agreement wasaltered to provide for the repayment of theprincipal in instalments beginning July of thisyear and ending in November, 1933. Theinitial instalment of $15,000,000 in the pastmonth involved the release of $12,000,000 ofthe Reichsbank's reserves, the remaining$3,000,000 being paid in the form of reichs-marks.

In addition to withdrawing reserves from thebank, the market also took money for circula-tion as reflected in the increase of the bank's

REICHSBANK

[In millions of reichsmarks]

GoldForeign-exchange reserves - _ _ _Nonreserve cash_ __ . _ _Discounts and advancesDepositsNotes in circulation . _ _. _

July 23,1932

754138307

3,029359

3,722

Change from—

June 23,1932

-69

-26+57- 4 1+5

July 23,1931

-599-22

+221-354-226-473

note issue and the decrease in its nonreservecash. These requirements were met partly bydrafts upon deposits and partly by borrowingat the bank.

Changes in Foreign Central Bank Discount Rates

The following changes in discount rates dur-ing the month ended August 1 have been re-ported by central banks in foreign countries:

Central Bank of Bolivia—July 5, from 7 to 6 percent.

Bank of Danzig—July 12, from 5 to 4 per cent.Imperial Bank of India—July 7, from 5 to 4 per cent.

Correction

In the table showing "Legal reserve require-ments of foreign central banks," printed onpage 437 of the July BULLETIN, the date in thesentence with regard to England reading" Authorization can not be extended beyondAug. 31, 1933," should read "Aug. 1, 1933."



RECENT LEGISLATION ON NATIONAL BANK NOTE CIRCULATION

A substantial increase in the amount of na-tional bank notes has been made possible by aprovision incorporated in the Federal HomeLoan Bank Act, which was approved by thePresident on July 22. * This act makes eligibleas security for national bank notes for a periodof three years all bonds of the United StatesGovernment bearing interest at 3% per centor less, both those now outstanding and thosewhich may be issued during the period. Morethan $3,000,000,000 of bonds are made eligibleby this act, in addition to those which alreadyhad the circulation privilege. In recent yearsthe circulation privilege has been confined tothree issues of 2 per cent bonds, aggregating$675,000,000, and the amount of these bondshas determined the limit on note issues ofnational banks. In view of the large volumeof bonds which have acquired the circulationprivilege under the terms of the recent act,the maximum amount of authorized circula-tion of national bank notes will not be limitedby the outstanding volume of bonds havingthe privilege but will depend upon the amountof paid-in capital of the banks, since the banksare not permitted by law to issue notes inexcess of their paid-in capital. With existingcapital the maximum of new notes which maybe issued is about $920,000,000.

The circulation privilege is extended to thesebonds for a period of three years, and at theend of that time the privilege ceases, and notesissued against them must be retired in an ap-propriate manner.2 The conditions governingthe issue of notes are in most respects unchangedby the recent act, with the exception of theabsence of any limit on the rate at which theseadditional notes may be retired from circulation

Conditions of issue.—At the present time cir-culating notes are issued to national banks ondepositing with the Treasurer of the UnitedStates Government bonds bearing the circula-tion privilege, together with a redemption

1 For the full text of this bill (H. R. 12280) see p. 527. Sec. 29 relates tothe issue of national bank notes.

2 The ruling of the Attorney General on the retirement of nationalbank notes issued under this act appears on p. 535.

fund in lawful money amounting to 5 per centof the value of the notes. The issue is made onthe basis of the par value of the bonds, and thenotes bear an annual tax of one-half of 1 percent. The notes go into circulation in theregular course of bank business, and ordinarilyare paid out freely and remain in the hands ofthe public as long as they are fit. Nationalbanks which choose to withdraw their notesfrom circulation deposit lawful money to coverthe amount of the outstanding issue, and theTreasurer releases the bonds held in trust assecurity. The amount of notes which may beretired in any one month has hitherto beenlimited to $9,000,000. This limitation doesnot apply to notes issued under the FederalHome Loan Bank act.

Bonds bearing the circulation privilege.—Prior to the passage of the Federal Home LoanBank act, only three issues of 2 per cent bondshad the national bank note circulation priv-ilege. There are $675,000,000 of these bondsoutstanding, all of which have been callable, atthe option of the Treasury, since April, 1930.The recent act extends this privilege to eightother issues bearing interest of 3% per centor less, aggregating $3,089,000,000, so thatthe circulation privilege is now possessed by$3,763,000,000 of bonds. The amount ofeach issue outstanding is shown below.

BONDS BEARING THE CIRCULATION PRIVILEGEOUTSTANDING JUNE 30, 1932

Prior to Federal Home Loan Bank act:2 per cent Panama Canal loan of 1916-19362 per cent Panama Canal loan of 1918-19382 per cent United States consols of 1930 __

Total

Authorized by Federal Home Loan Bank act:2Yi per cent Postal Savings bonds (third to forty-second

series)3 per cent conversion bonds of 1946-19473 per cent Panama Canal loan of 19613 per cent bonds of 1951-19553Vg per cent bonds of 1946-19493y8 per cent bonds of 1940-19433% per cent bonds of 1941-19433% per cent bonds of 1943-1947

Total

Total, all issues

48, 95425. 947599', 724

674, 625

36, 24728, 89549, 800

800, 422821, 403352, 994544, 917454,135

3, 088, 813

3, 763, 438

For some years almost all of the 2 per centbonds have been absorbed by national banks assecurity for their note issues. On June 30,1932,all but $5,000,000 of the $675,000,000 out-



standing were being used in this way, and thelimited amount of bonds prevented an increasein the amount of national bank notes in circula-tion, although individual banks might increasetheir issues as other banks retired their notesand disposed of their bonds. Because of theirmonopoly of the circulation privilege, the 2 percent bonds have rarely sold below par, and onJune 1 the bid price for the 2 per cent consolsof 1930 was 101%.

Since June 1, and particularly since July 16,when the Home Loan Bank act was passed,prices of 2 per cent bonds have declined sharply.On August 1 they were all below par, with bidsfor the 2 per cent consols at 98. Prices of thefive leading issues which have been given thecirculation privilege, on the other hand, haveadvanced more rapidly than those of otherGovernment bonds against which notes can notbe issued.

Paid-in capital of national banks the limita-tion on note issue.—With $3,763,000,000 inbonds bearing the circulation privilege, therewill be no lack of collateral for notes, and theamount which may be issued by the banks atany time will be limited by their paid-incapital, which was $1,569,000,000 on June 30,according to figures from the condition reportmade to the Comptroller of the Currency,The banks' liability for national bank notesoutstanding at that time was $652,000,000,leaving a p o t e n t i a l issuing power of$917,000,000. . ^ m

This unused issuing power is not evenly dis-tributed over the country. In general, countrybanks in the smaller cities have used theirprivilege to a much greater extent than thebanks in central reserve and reserve cities, andcan issue fewer new notes.

The potential issuing power of differentclasses of banks on June 30, 1932, is shownin the following table:

UNUSED ISSUING POWER OF NATIONAL BANKS, BYCLASSES OF BANKS, JUNE 30, 1932

[In thousands of dollars]

Class of bank

All national banks

Central reserve city banksReserve city banksCountry banks *_

Paid-incapital

1,568,983

336,429537, 686694, 868

Liabilityfor

nationalbank notes

652,168

32,901177, 267442, 000

Unused is-suingpower

916,815

303, 528360,419252,868

1 Includes 5 national banks in Alaska and Hawaii.

Less than 30 per cent of the unused issuingpower was held by country banks, and theremainder by banks in New York City, Chicago,and other reserve cities. New York City andChicago banks together had the power to issue$304,000,000 in new notes, other reserve citiesabout $360,000,000, and country banks $253,-000,000. Complete statistics for individualnational banks are not available for June 30,but on December 31, 1931, the 36 largestnational banks in the country, all of which hadpaid-in capital of $5,000,000 or more, held overhalf of the unused note-issuing power; and8 of these large banks had power to issue morethan 40 per cent of the new notes.

By Federal reserve districts, the privilege toissue additional notes is concentrated chiefly inthe national banks of four Federal reservedistricts—New York, Boston, Chicago, andSan Francisco, which together will have theauthority to issue 69 per cent of the potentialincrease in notes. This is shown in the follow-ing table:

UNUSED ISSUING POWER OF NATIONAL BANKS, BYFEDERAL RESERVE DISTRICTS, JUNE 30, 1932


District

BostonNew York. . .Philadelphia.Cleveland

Richmond.AtlantaChicagoSt. Louis...

140,150419,630124,062112,638

70,80875,285

170,39554,594

57, 21081, 23376,692

182,863

Total. 1,565,558

Minneapolis...Kansas Ci ty . . .DallasSan Francisco..

Paid-incapital

Liabilityfor

nationalbanknotes

43,61691,32965,24174,667

45,81845,50874,46226, 934

26,29930,93845,23978,855

648,906

Unused issuingpower

Amount

96, 534328,30158,82137,971

24,98829,77795,93327, 660

30,91150,29531,453

104,008

916,652

Per centof total

113664

3113

363

11

100

NOTE.—Does not include 5 national banks in Alaska and Hawaii.

Cost of the note issue.—The fixed costs ofnote issue are somewhat less than 1 per cent peryear on the face amount of notes issued, andinclude an annual tax of one-half of 1 per cent,the cost of engraving, printing, and shipping,and the loss of interest on the 5 per cent cashredemption fund deposited with the Treasurer.In addition, the issuing bank must take intoaccount amortization of any premium paid onthe bonds. Before the passage of the recent



act, computations- of the Comptroller of theCurrency indicated that national banks issuingnotes secured by 2 per cent bonds realized anannual profit of about one-half of 1 per centeven when the bonds were purchased at a priceto yield about IK per cent. On August 1, tendays after the approval of the act, some of the3% per cent bonds recently given the circu-lation privilege were selling at par. Thus, theycould be bought on a yield basis of 3% per cent,and the margin of profit on notes taken out onthese bonds as security would be higher thanthat realized in recent years on notes based on 2per cent bonds.

Effect on circulation.—Since there is nothingin the new law to bring about an increase in thedemand for currency, national bank notesissued will tend to replace other forms of cur-rency in circulation, and particularly Federalreserve notes. The total volume of currencyunder the Federal reserve system varies in re-sponse to the cash requirements of the public foruse in retail trade and pay rolls, except at timesof banking disturbances when cash is hoarded.When the amount of currency exceeds theamount required for these transactions, surpluscurrency is deposited in the commercial banks,and returned by them to the reserve banks.Currency can not be kept in circulation inlarger volume than is required by the public.When, on the other hand, there is an increase inthe demand for currency by the public, it isreflected in withdrawals of cash from memberbanks, which obtain additional supplies fromthe reserve banks. The reserve banks havealways been in a position to meet all demandsfor currency, and no member bank with assetseligible for discount at the reserve banks hasexperienced difficulty in meeting its customers'demands for cash. There has been no shortageof currency in this country since the establish-ment of the Federal reserve system.

In these circumstances, the issue of additionalbank notes will result in the retirement of other

forms of money. The volume of all other kindsof currency, including gold certificates, UnitedStates notes, and Federal reserve notes, in par-ticular, will tend to decrease. National banknotes will drive other forms of currency outof circulation, rather than be driven outthemselves, because circulation is the only useto which they can be put. When a Federalreserve bank receives national bank notes itgives full credit for them, but the notes area dead asset—nonreserve cash—and can not becounted as a part of reserves or be deductedfrom note liabilities. It is in the interest ofthe reserve bank, therefore, to pay nationalbank notes back into circulation as quickly aspossible, or to send them to the Treasury forredemption, in which case new notes will beissued to the public by the national banks.When a Federal reserve bank receives gold orsilver certificates or United States notes, on theother hand, it can count them as reserves, andif it receives Federal reserve notes it can retirethem and diminish its own liabilities. Thusthe mechanics of the currency system willoperate to keep national bank notes in circula-tion and to let them displace other forms ofcurrency.

At the end of June $737,000,000 in nationalbank notes were outstanding, including in addi-tion to the $652,000,000 for which active na-tional banks were liable, about $85,000,000 innotes which were a liability of the United StatesTreasury. Of the total of $737,000,000 out-standing, $701,000,000 were in circulation,that is, were held outside the Federal reservebanks and the United States Treasury. Theyformed 12 per cent of the total volume of moneyin circulation, which on that date was $5,696,-000,000.x Under the new law this proportionmay rise to 30 per cent on the basis of the exist-ing volume of currency outstanding.

1 The amount of each kind of currency in circulation on June 30,1932,is shown in the table on p. 486.



REPORT OF RECONSTRUCTION FINANCE CORPORATION

The Reconstruction Finance Corporationmade its second report to Congress on July 7,1932. The text of the report, together with atable showing aggregate loans to each class ofborrower, is given herewith:*

Pursuant to the provisions of section 15 ofthe Reconstruction Finance Corporation act,we have the honor to submit the report of thecorporation covering its operations for theperiod from the organization of the corporationon February 2, 1932, to June 30, 1932, inclusive.

During this period the corporation author-ized 5,084 separate loans to 4,196 institutionsaggregating $1,054,814,486.59, as follows:$642,789,313.07 to 3,600 banks and trust com-panies (including $27,398,350 to aid in the re-organization or liquidation of 316 closed banks) ;$52,484,923.40 to 418 building and loan asso-ciations; $63,465,500 to 63 insurance com-panies; $322,440.12 to 8 agricultural credit cor-porations; $1,270,000 to 5 joint-stock landbanks; $6,594,586 to 10 livestock credit cor-porations; $73,600,000 to 51 mortgage loancompanies; $405,000 to 3 credit unions; and$213,882,724 to 38 railroads (including $10,-359,796 to 5 railroad receivers).

In addition, the corporation had outstandingon June 30, 1932, as indicated in the attachedtables, agreements to make loans totaling$875,000 upon the performance of specified con-ditions. The corporation also has allocated$85,000,000 to the Secretary of Agriculture inaccordance with the provisions of section 2 ofthe Reconstruction Finance Corporation act,and has agreed to make loans to the several

1 The report contains, in addition, the following tables: Number ofborrowers, by States and classes; statement of condition as of June 30,1932; names and compensation of directors, officers, and employees re-ceiving from the corporation more than $400 per month.

Federal land banks up to an aggregate amountof $30,000,000. Furthermore, the corporationagreed to take all or any part of the February15, March 15, and April 15, issues of Federalintermediate credit bank debentures, aggre-gating $68,025,000, which might remain unsoldon the dates indicated. As all of the Federalintermediate credit bank debentures were soldin the open market, it was unnecessary for thecorporation to take any part of the issues inquestion.

Of the total amount of loans authorized,loans aggregating $10,222,003.99 were latercanceled or withdrawn.

At the close of June 30, 1932, the corporationhad advanced $805,150,006.95, and repaymentsamounted to $76,488,199.34, leaving" $728,-661,807.61 outstanding on the books of'thecorporation.

The loans authorized by the corporationhave been widely distributed throughout thecountry. Of the 3,600 banks and trust com-panies to which loans were authorized, 70.3 percent were located in towns of less than 5,000population; 78.3 per cent in those of less than10,000; 86.4 per cent in those of less than25,000; 90.1 per cent in those of less than50,000; 93.2 per cent in those of less than100,000; and 95.6 per cent in those of less than200,000 population.

Of all institutions to which loans were au-thorized, numbering 4,158 (excluding rail-roads), 62.7 per cent were located in towns ofless than 5,000 population; 70.4 per cent inthose of less than 10,000; 79.5 per cent in thoseof less than 25,000; 84.5 per cent in those ofless than 50,000; 89.1 per cent in those of lessthan 100,000; and 92 per cent in those of lessthan 200,000 population.

AGGREGATE LOANS TO EACH CLASS OF BORROWER, FEBRUARY 2 TO JUNE 30, 1932, INCLUSIVE

Banks and trust companiesCredit unionsBuilding and loan associations, _.Insurance companiesMortgage-loan companiesJoint-stock land banksLivestock-credit corporationsAgricultural credit corporations,.Railroads (including receivers),..

Total

Authorized 1

2 $642, 789,313. 07405,000. 00

52,484,923.4063,465, 500. 0073, 600, 000. 001,270,000.006,594,586. 00

322,440.12213,882, 724. 00

Advanced

$497,387,936. 65367, 727. 00

42,117,079. 2646, 010,638.8366, 568,867. 25

864,216. 585,893,635.01

286, 365. 87145, 653, 540. 50

31,054,814, 486. 59 805,150,006. 95

Repaid

$68,373,943. 453, 393. 00

852,990.63523, 236.45404, 847.0124,020. 56

137,833.601,254. 90

6,166, 679. 7476, 488,199. 34

Outstanding

$429,013,993. 20364, 334. 00

41,264,008. 6345,487,402. 3866,164,020. 24

840,196. 025,755,801. 41

285,110.97139,486,860. 76

728, 661,807. 61

1 The corporation agreed to take all or any part of the Feb. 15, Mar. 15, and Apr. 15 issues of Federal intermediate credit bank debentures,aggregating $68,025,000, which might remain unsold on the dates indicated. As all the Federal intermediate credit bank debentures were sold inthe market, it was unnecessary for the corporation to take any part of the issues in question. These agreements are not included in the abovefigures. The corporation also has agreed to make loans to the several Federal land banks up to an aggregate amount of $30,000,000. This amountis not included in the above figures. In addition, the corporation had outstanding on June 30, 1932, agreements to make loans (not included in theabove figures) upon the performance of specified conditions, as follows: Banks and trust companies, $875,000.

2 Loans to banks and trust companies include $27,398,350 to aid in reorganization or liquidation of closed banks.3 Includes loans authorized which were subsequently canceled or withdrawn, aggregating $10,222,003.99, as follows: Banks and trust companies,

$8,262,081; building and loan associations, $50,000; insurance companies, $1,000,000; livestock-credit corporations, $432,422.99; mortgage-loan com-panies, $477,500.



NATIONAL SUMMARY OF BUSINESS CONDITIONS

[Compiled July 23 and released for publication July 25]

Industrial activity decreased further fromMay to June by somewhat more than the usualseasonal amount, and there was a considerablereduction in factory employment and pay rolls.The general level of commodity prices advancedbetween the middle of June and the middle ofJuly, reflecting chiefly a rise in the prices oflivestock and meats.

Production and employment.—Volume ofindustrial production, as measured by theboard's seasonally adjusted index, declinedfrom 60 per cent of the 1923-1925 average inMay to 59 per cent in June. There were largedecreases in output in the steel, coal, and meat-packing industries, while at automobile facto-ries, daily average production showed a smallerdecline than is usual at this season, and at wool-en mills activity increased, contrary to seasonaltendency. Consumption of cotton by domesticmills showed the usual seasonal decline.

At manufacturing establishments there wasa further reduction of 3.6 per cent in number ofemployees and of 7.8 per cent in earningsbetween the middle of May and the middle ofJune. Decreases in employment were general,with the exception of the automobile andtobacco industries and of seasonally activeindustries, such as vegetable and fruit canningand the manufacture of ice cream. Thelargest decreases were in the steel, textile,chemical, and machinery industries and atrailway repair shops.

m Daily average value of building contractsaVarded, as reported by the F. W. Dodge Cor-poration, declined in June but increased in thefirst half of July.

Department of Agriculture estimates as ofJuly 1 indicate a corn crop of 3,000,000,000bushels, the largest since 1923; a winter-wheatcrop of 432,000,000 bushels, 45 per cent smallerthan last year and 21 per cent less than the5-year average; a spring-wheat crop of 305,-000,000 bushels, three times as large as lastyear and slightly larger than the average; anda tobacco crop one-fifth smaller than usual.

Distribution.—Volume of railroad freighttraffic declined somewhat further in June, andvalue of merchandise sold by department storesdecreased by more than the usual seasonalamount.

Wholesale prices.—The level of prices inwholesale markets, after declining steadily

during May, was relatively stable early in June,and after the middle of the month there wasan advance which continued through thesecond week in July. Prices of several leadingcommodities, including livestock and meats,cotton, and sugar, increased considerablyduring June and the first half of July, but latershowed some recession. Prices of wheat de-clined to unusually low levels, and markets forcopper and lead continued weak.

Bank credit.—Volume of reserve bank creditcontinued to increase between the middle ofJune and the middle of July, reflecting prin-cipally further purchases of United StatesGovernment securities by the reserve banks.In addition, member banks obtained reservebank funds through an increase in the monetarystock of gold and a decline in deposits held withthe reserve banks by foreign central banks.Funds released from these sources were ab-sorbed by an increase in the demand forcurrency, which also caused the member banksto draw on their balances with the reservebanks and to increase their discounts some-what. The demand for currency, which for theperiod amounted to $270,000,000, was causedby banking disturbances, largely in the Chicagodistrict, by seasonal requirements at the turnof the month and the Fourth of July holiday,and by increased use of cash to avoid the taxon checks.

Loans and investments of reporting memberbanks, after fluctuating widely during June,declined in the first two weeks of July, and onJuly 13 totaled $18,475,000,000, about $540,-000,000 less than on June 1. There was afurther decline in loans, while the banks'investments in United States Governmentsecurities, after increasing substantially duringthe period of Treasury financing in mid-June,declined gradually, but on July 13 were still$90,000,000 larger than 6 weeks earlier.

Money rates in the open market declinedfurther during June and the first half of July.At the Federal Reserve Bank of New Yorkbuying rates for bankers7 acceptances maturingwithin 90 days were reduced from 2% to 1 percent on June 24. On the same day the banklowered its discount rate from 3 to 2}{ per cent,and on the following day the rate at theChicago bank was reduced from 3% to 2%per cent.



RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGESMILLIONS OF DOLLARS MILLIONS OF DOLLARS

6000

5500

5000

4500

5500

5000

4500

4000

2500

2000

1500

1000

1927 1928 1929 1930 1931 1932Based on weekly averages of daily figures; latest figures are for week ending July 30


484 FEDERAL RESERVE BULLETIN A U G U S T , 1932

FEDERAL RESERVE BANK CREDIT

RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES


Month or week

Averages of daily figures

Reserve bank credit outstanding

Bills dis-counted

Billsbought

UnitedStates

securities

Otherreservebankcredit

Total

Factors of decrease

Monetarygold stock

Treasurycurrencyadjusted

Factors of increase

Moneyin circu-lation

Memberbank

reservebalances

Non-memberdeposits,

etc.

Unex-pendedcapitalfunds

1931—FebruaryMarchApril.M a y . - — -JuneJ u l y - -AugustSeptemberOctober.. —NovemberDecember

1932—JanuaryFebruaryMarchAprilMayJune - --July

Week ending (Saturday)-Mar. 5Mar. 12Mar. 19Mar. 26 —

Apr. 2Apr. 9 -Apr. 16. —Apr. 23. -Apr. 30

May 7May 14May 21May 28

June 4.June 11June 18June 25

July 2July 9July 16July 23July 30

216176155163188169222280613695774

828848714605486495523

10212317314412179

135259692560340

22115110552415060

603604600599610674712736733727777

759743809

1,0141,4131,6971,818

936921952926945954

1,1071,3132,0882,0351,950

1,8651,7851,6521,6941,9592,2622,422

4,6564,6824,7114,7674,8654,9584,9754,9484,4474,3634,450

4,4524,3844,3724,3814,2733,9563,941

1,7801,7781,7701,7831,7591,7841,7641,7681,7681,7661,782

1,7731,7871,7921,7891,7881,7871,780

4,5984,5904,6474,6794,7504,8364,9475,1335,4785,5185,611

5,6455,6275,5315,4525,4565,5305,751

2,370

2,3762,3872,4042,4072,3452,3332,2562,1182,069

1,9791,9071,8991,9962,1382,0622,003

252427283583187199208171144

113733763776546

828757684667

651647637579543

514480474477

496506496491

484509521536531

12513610784

754786820825

854882957

1,0771,186

1,2841,3721,4381,504

1,5631,6381,7001,746

1,7911,7931,8211,8311,839

1,7311,7051,6341 599

1,5951,6091,6701,7291,794

1,8641,9161,9712,034

2,1172,1992,2762,313

2,3592,4042,4282,4392,430

4,3524,3634,3744,382

4,3904,3924,3814,3764,370

4,3504,3164,2744,204

4,1073,9893,9223,916

3,9193,9203,9323,9523,963

1,7831,7781,8251,791

1,7891,7901,7881,7861,784

1,7961,7741,7901,786

1,7971,7861,8001,769

1,8001,7951,7651,7751,774

5,5945,5635,5375,498

5,4695,4755,4505,4425,428

5,4655,4575,4595,439

5,4775,4735,4855,556

5,7035,7855,7455, 7515,718

1,8851,9011,9091,890

1,9091,9161,9752,0222,095

2,1152,1252,1522,164

2,1072,0932,0922,032

1,9791,9461,9912,0252,057

379381383382380370367364361357358

353349349353349348343

3463483£0351

351350351354352

351350350349

348347350

346345344343343

End of month series

Feb.29

Mar.31

Apr.30

May31

June July

Wednesday series

June22

June29

July July13

July20

JuJy27

Bills discountedBills boughtUnited States securities.Other reserve bank credit-

Total reserve bank creditMonetary gold stockTreasury currency adjusted

Money in circulationMember bank reserve balances,Nonmember deposits, etcUnexpended capital funds

82810974032

1,7094,3531,791

5,6041, l"'"

53347

63968

87218

1,5974,3901,806

5,4591,924

59351

55648

1,22818

1,8504,3671,803

5,4642,124

79353

49036

1,54921

2,04,11,802

5,4802,113

109348

44067

1,78419

2,3103,919M "5,6951,982

42346

53843

1,84117

2,439'3,974

P I , 758

>5, 7262,052

49344

Bills discounted -Bills bought _ _United States securities...Other reserve bank credit-

Total reserve bank creditMonetary gold stockTreasury currency adjusted

Money in circulation .._Member bank reserve balances.Unexpended capital fundsNonmember deposits, etc

48854

1,73016

2,2883,9171,770

5,5052,066

47064

1,80111

2,3463,9201,811

5,6492,034

403 394

50077

1,80130

2,4083,9221,793

5,7751, !~"~

385

51662

1,821IS

2,4173, 93f1,767

5,7142,015

387

53852

1,83612

2,4383,9521,770

5,7352,036

389

52540

1,841

2,4223,9601,771

5,6902,072

391

* Preliminary.



RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVENOTE STATEMENT


RESOURCESGold with Federal reserve agentsGold redemption fund with United States Treasury _ _ _

Gold held exclusively against Federal reserve notesGold settlement fund with Federal Reserve Board - _ _ _ _ _Gold and gold certificates held by banks __. _ _._ __

Total gold reservesReserves other than gold _._ - ._

Total reservesNonreserve cash _ _ _ __

Bills discounted:For member banksFor intermediate credit banks - _For nonmember banks (secured by adjusted service certificates) _

Total bills discounted... _Bills bought:

Payable in dollars—Bought outright__ . . _ _Under resale agreement

Payable in foreign currencies _

Total bills bought _ _ _.United States securities:

Bought outright .Under resale agreement _._ _

Total United States securities _Other reserve bank credit:

Federal intermediate credit bank debentures _ _Federal land bank bondsMunicipal warrants » « - _ _ _ . _Due from foreign banks _ _ _ . _Reserve bank float (uncollected items in excess of deferred availability items) __

Total reserve bank credit outstanding _

Federal reserve notes of other reserve banksUncollected items not included in float . . _Bank premises , __All other resources _ _ __

Total resources _ _ _ __

Federal reserve notes: LIABILITIESHeld by other Federal reserve banksOutside Federal reserve banks___ __

Total notes in circulation _ _ __ _ ._Deposits:

Member bank—reserve accountGovernment _ . _Foreign bankOther deposits _ _

Total deposits - - -Deferred availability itemsCapital paid in _ _ _SurplusAll other liabilities _ _

Total liabilities .Contingent liability on bills purchased for foreign correspondents

FEDERAL RESERVE NOTE STATEMENTFederal reserve notes:

Issued to Federal reserve banks by Federal reserve agents _ __Held by Federal reserve banks* _._

In actual circulation

Collateral held by agents as security for notes issued to banks:Gold _ -_Eligible paper _.United States Government securities _ _ -

Total collateral

Ju ly 31,1932

1,969,15262,944

2,032,096242, 370360,945

2,635,411200, 732

2, 836,14370,072

537, 451604163

538, 218

7,4454,840

30, 645

42, 930

1,828, 82812, 500

1,841, 328

5,9572,8877,621

2,438,941

14,939297, 613

58,11948, 439

5, 764, 266

14,9392,843,970

2, 858,909

2, 051, 50557, 3678,922

39, 723

2,157, 517297,613153, 738259, 42137,068

5, 764, 26659, 498

3, 079, 771220, 862

2,858,909

1,969,152524,874611,400

3,105, 426

J u n e 30, 1932

1,956,26759, 784

2,016,051223,421338, 337

2, 577,809198, 808

2,776, 61767,493

439, 307528155

439,990

21,67714,15530,762

66, 594

1,761, 66922,052

1,783,721

5. 2143', 655

10, 720

% 309, 894

13, 325343,845

58,08645, 462

5,614, 722

13,3252,781,638

2,794,963

1,982,1273,7569,002

33,378

2,028,263343,845154, 812259, 421

33,418

5,614,72297, 729

3,028,396233,433

2, 794,963

1,956,267452, 596634, 500

3,043, 363

J u l y 31, 1931

2, 056, 33929, 984

2, 086, 323414, 523930, 295

3, 431,141166, 333

3, 597, 47471, 280

194, 927

131

195, 058

33, 7375,244

34, 371

73, 352

677, 853

677, 853

6,250650146

10, 72611, 935

975,970

15,104398, 432

58, 91528, 406

5,145, 581

15, 1041, 749. 547

1, 764, 651

2, 366, 58220,122

113, 99526, 031

2, 526, 730398, 432167, 445274, 636

13, 687

5, 145, 581242, 974

2,180, 421415, 770

1, 764, 651

2, 056, 339225, 382

2, 281, 721

» Excludes "Federal reserve notes of other Federal reserve banks" which are consequently included in actual circulation



ANALYSIS OF CHANGES IN MONETARY GOLDSTOCK


Month

1929—January _FebruaryMarch _ . _April _ _.MayJuneJulyAugust .SeptemberOctober --NovemberDecember

Total (12 mos.)..

1930—JanuaryFebruaryMarchAprilMay -June..JulyAugust _-SeptemberOctoberNovemberDecember...

Total (12 mos.)..

1931—JanuaryFebruaryMarch..April . .MayJuneJulyAugustSeptember . .OctoberNovemberDecember __ _»__

Total (12 mos.)-.

1932—JanuaryFebruaryMarchAprilM a y .JuneJuly *.

Total (7 mos.)

Goldstockat end

ofmonth

4,1274,1534,1884,2604,3014,3244,3414,3604,3724,3864,3674,284

4.2914,3534,4234,4914,5174,5354,5174,5014,5114,5354,5714,593

4,6434,6654,6974,7264,7984,9564,9494,9954,7414,2924,4144,460

4,4164,3544,3904,3674,1523,9193,974

Increasein stockduringmonth

-14 .426.434.472.440.623.416.318.912.114.4

-19 .2-82 .9

142.5

6.861.970.268.525.917.6

-18 .4-15 .5

10.223.336.822.1

309.6

49.422.032.028.772.4

158.0- 6 . 6

45.7-254.3-448.4

122.045.8

-133.4

-44 .2-62 .3

36.0—23.1

-214.1—233.9

55.1

-486.4

Analysis of changes

Net goldimport

47.225.524.823.123.630.234.718.417.617.5

-23 .2-64 .4

175.1

4.060.055.565.723.513.9

-19 .6-19 .6

2.526.435.232.7

280.1

34.416.125.649.549.663.819.557.520.6

-337. 789.456.9

145.3

-73 .0-90 .6-24 .7—30.2

— 195.5—207. 7

- 4 . 4

-626.1

Net re-lease

from ear-mark *

-65 .00.07.5

48.616.1

- 7 . 5- 2 2 . 0

- 1 . 0- 6 . 6- 4 . 5

1.0-22 .0

-55.4

0.50.0

15.00.52.02.0

- 3 . 00.04.0

- 6 . 1- 2 . 1

-15 .2

- 2 . 4

11.92.53.0

- 7 . 54.0

92.3-29 .7-16 .0

-279.1-107.6

28.3-22 .9

-320.8

25.426.458.34.0

-22 .1—28.8

56.2

119.3

Domes-tic pro-duction,

etc.*

3.40.92.10.80.90.73.61.51.11.43.03.5

22.8

2.31.9

—0.32.30.51.74.34.23.73.13.84.5

31.9

3.13.33.3

-13 .318.81.93.64.24.2

- 3 . 14.2

11.9

42.1

3.41.92.43.23.62.63.3

20.4

i Gold released from earmark at Federal reserve banks less gold placedunder earmark.

a This figure, derived from preceding columns, represents the excess ofdomestic production over nonmonetary consumption of gold—chieflyconsumption in the arts. In any given month, however, it may be pre-dominantly affected by the fact that on the final day of the month (a)gold bullion or foreign gold coin recently imported may not yet havereached a reserve bank or the Treasury, and (6) gold bullion recentlywithdrawn from stock for export may not yet have been actually ex-ported. The figures are subject to certain unavoidable inaccuraciesin official reports of gold imports and exports.

» Preliminary figures.

GOLD MOVEMENTS TO ANDSTATES


FROM UNITED

From or to—

BelgiumEngland .FranceGermanyNetherlandsPortugalSwitzerlandCanadaCentral AmericaMexicoArgentinaColumbiaEcuadorPeruUruguayVenezuelaAustralia—_British IndiaChina and Hong

KongDutch East Indies.JapanPhilippine IslandsAll other countries *

Total

1932

July(preliminary)

Im-ports

1,480

4,233

709

1,14249

4,436

4,1842,200

445218,878

Exports

21,513

1,660

150

2 23,323

June

Im-ports

250

3,775255

1,116

92113

1 00098

665

4,866139

5,173589264

18, 395

Ex-ports

26,2502,161

111,411116

23 168

62 60326

300

32

50

226,117

January-June

Im-ports

7228

61

35,617740

11, 02512,9502,967

5832,5013,000

7913,6527,497

14,9932,157

39,0372,2825,593

146,175

Ex-ports

83,60215,057

418, 67913, 738

115 2772,386

118, 291126

3320

126

232

767,838

1 Includes all movements of unreported origin or destination.2 At New York—imports, $2,683,000; exports, $23,323,000. Elsewhere,

imports, $16,195,000.

KINDS OF MONEY IN CIRCULATION

[Money outside Treasury and Federal reserve banks. In millions ofdollars]

U K i n d of m o n e y ~ \ Z *.

Gold coin _ _ _ _Gold certificatesFederal reserve notes

Treasury currency:l

Standard silver dollarsSilver certificates __Treasury notes of 1890Subsidiary silver _ _ _Minor coinUnited States notes..-Federal reserve bank notesNational bank notes

Total Treasury currency _

Total money in circulation

1932

July 31 v

454694

2,838

30351

1254113289

3700

1,741

5,726

June 30

453716

2,780

30353

1256114289

3701

1,747

5,695

1931

July 31

363976

1,749

34375

1271117301

3647

1,749

4,837

i For explanation of the term "Treasury currency" see BULLETIN forJuly, 1929, p. 432.

* Preliminary.



MEMBER BANK RESERVE BALANCES


Month or week


Reserves held

Total—allmember

banksNew York

City iOther

reservecities

'Country'banks

Excess reserves

Total—allmemberbanks

New YorkCity i

Otherreservecities

" Country"banks

1931—MarchAprilMayJuneJu ly . . . .AugustSeptemberOctober.-NovemberDecember

1932—JanuaryFebruaryMarchAprilMayJune

Week ending (Friday)—May 6May 13May 20May 27 -

July 3 _June 10June 17June 24

June 1July 8July 15

2,3862,3762,3872,4042,4072,3452,3332,2562,1182,069

1,9791,9071,8991,9962,1382,062

2,1172,1232,1482,168

2,1142,0902,0952,051

1,9791,9471,982

860829848882887843

774766

724681687780874783

864871907

837779791786

758717753

945962961949950943918872832807

767753747749800819

580585578573570559551536512503

473465466464459

66.555.666.8128.9124.4100.6120.3129.157.059.5

35.443.859.0152.1277.1234.4

19.47.215.571.460.634.353.852.510.718.5

4.57.217.888.1155.189.4

778792813803

816844844807

772760778

473467463458

460466459458

449470451

(*)(3)

147.1144.8153.4186.0

122.078.891.294.4

65.825.162.9

18.720.223.627.032.835.736.739.719.416.9

1.811.317.335.791.5111.4

70.484.9102.194.2

109.7136.2130.0100.6

72.568.386.5

28.428.227.730.530.930.629.837.026.930.9

29.225.323.828.330.533.6

1 Central reserve city banks only.

Back figures.—See (for monthly data) BULLETIN for June, 1931, p . 347.

1 Figures not available by weeks.

MEMBER BANK DEPOSITS


Month

T o t a l -all mem-

berbanks


Net demand and time deposits

NewYorkCity*

Otherreservecities

"Coun-t ry"

banks

T o t a l -all mem-

berbanks

Net demand deposits

NewYorkCityi

Otherreservecities

"Coun-t ry"

banks

Time deposits

T o t a l -all mem-

berbanks

NewYorkCity i

Otherreservecities

[< Coun-t ry"

banks

1931—MarchAprilMayJuneJulyAugustSeptemberOctober.._NovemberDecember.

1932—January...February..MarchAprilMayJune

32,06932,17932,16831, 60231,52631,04130, 50029,13828, 21827,438

26, 59225, 71525,43125,38625,46625,075

7,4727,3367,4397,2327,3257,1477,1266,9376,6126,414

6,1655,7975,7605,9506,1595,957

13,00313,18113,15712,93912,83112, 70212,35611,65711, 35011,048

10, 70610,41310,29110,10910, 08110,032

11,59411,66211,57311,43211,37111,19211,01810,54410, 2569,976

9,7209,505

9,3279,2269,087

18,43118,49118,41918,05518,12217, 78317,52516,85916, 35815,985

15,44714, 78914, 57514, 58914, 67914,413

6,1696,0196,0945,9346,0645,9465,9625,8725,6535,546

5,3435,0014,9595,1385,3425,154

7,1597,3097,2367,1327,1027,0126,8056,4216,2736,106

5,9215,7235,6225,4925, 4255,433

5,1035,1635,0904,9884,9564,8254,7584,5674,4324,333

4,1834,0643,9933,9593,9113,826

13, 63713,68813, 74913,54813,40413, 25912, 97412, 27911,86011,453

11,14510,92610,85610,79710,78710, 663

1,3031,3171,3451,2971,2601,2011,1631,065959

822796800811816

5,8435,8725,9215,8075,7285,6915, 5525,2365,0764,942

4,7864,6904,6684,6184, 6564,599

6,4916,4986,4836,4446,4156,3676,2595,9775,8255,643

5,5375,4405,3875,3685, 3155,261

1 Central reserve city banks only.Back figures—See BULLETIN for June, 1931, p. 347.


488 FEDERAL RESERVE BULLETIN A U G U S T , 1932

ALL MEMBER BANKS—CLASSIFICATION OF LOANS AND INVESTMENTS


Call date

Totalloansand

invest-ments

35,68435,39335, 71135,91435,93435,05635, 65635,47234,86034, 72933,92333,07330, 57528, 001

7,9517,7268,1608,1508,7748,2388,7988,5578,5828,4738,2878,2537,4606,715

14,06613,92513,83213,98313, 78513, 57513, 70113,97113,75813,96513,56713,01612,11511,045

13, 66713, 74113, 71913, 78013,37513, 24313,15712, 94412, 51912, 29012,06811,80510,99910, 240

Loansto

banks

538548670640714527535466631446457599790573

288251314302322199196169283154150250374260

213258308294346263277235286235247284347254

3739494545656362625860646959

Loans to other customers

Total

21,46021,90322,51723,24923,19321,49421, 56521,01021,00719,94019, 25718, 71317, 57015, 267

3,9404,2534,5324,8464,9644,3384,3084,2764,3384,0073,8393,8503,6942,856

9,2679,2869,4349,7759,7488,9519,0298,7268,9068,4098,1007,8457,4076,519

8,2548,3648,5518,6278,4818,2068,2298,0077,7627,5247,3187,0186,4695,892

Se-cured

bystocksand

bonds

7,3487,5407,7348,1098,4887,7308,0617,8647,9427,4237,1176,8426,2905,292

1,7081,7441,8771,9442,2001,936*2,0222,0312,1371,9601,8971,8161,7281,343

3,7343,7403,7183,8693,9753,6043,8113,6323,6563,3663,1883,0922,8062,403

1,9062,0562,1392,2952,3142,1902,2272,2002,1492,0972,0311,9351,7561,546

Se-cured

byreal

estate

3,1233,1233,1643,1523,1913,1703,1553,1633,2343,2203,2163,1493,0382,894

132148175176169150157157147150160152153160

1,5471,5091,5031,4911,5591,5441,5241,5261,6311.6191,6211,5851,5381,407

1,4441,4651,4861,4851,4621,4751,4751,4801,4551,4491,4371,4111,3461,328

Other-wisese-

curedand

unse-cured

10,99111,24011,61811,98811,51510, 59510,3499,9829,8319,2988,9228,7228,2447,081

2,1002,3612,4802,7262,5952,2522,1292,0872,0541,8961,7821,8811,8131,353

3,9864,0364,2134,4154,2143,8023,6933,5673,6203,4233,2913,1683,0632,709

4,9044,8434,9264,8474,7054,5414,5274,3264,1583,9783,8493,6733,3673,018

Open-market loans

Total

3,1582,4942,4722,2762,2433,0973,1133,2622,2332,4542,1031,563

901747

1,7901,2501,4961,196L, 397L, 6552,091L, 912L, 525L6511,4971,121

695565

742645480526438945710

1,064531645470326135118

6255984965534094963122861771581351167164

Purchased paper

Accept-ancespay-ablein

UnitedStates

10914610893

212175170205315361389268146313

61595859

12889

144148188199296201107262

1843178

51591854

12215891673538

304433273327

8455214

13

Ac-cept-ancespay-able

abroad

1039390708079716255

101113704134

6152583346402928225144331721

3432253129353831294867352111

88765444322222

Com-mer-cial

paper

390376249228291499507523366361384296140122

293721

821493522343594482923

1501478875

1082423013372122121891676262

211192140144163207171164120114101814836

Loansto

bro-kersin

NewYorki

2,5561,8792,0251,8851,6602,3442,3652,4721,4981,6301,217

928575278

1,6391,1021,3591,0961,2021,4771,8831,7141,2811,3671,063

839542258

5414233494132506093536431672271245616

7

376354316376208258129115493630321613

Investments

Total

10,52910,44810,0529,7499,7849,937

10,44210,73410,98911,88912,10612,19911,31411,414

1,9331,9721,8191,8072,0912,0462,2032,1982,4352,6622,8013,0322,6973,033

3,8443,7363,6113,3883,2533,4163,6853,9474,0354,6764,7504,5614,2264,154

4,7514,7404,6234,5544,4394,4754,5544,5894,5194, 5504,5554,6064,3924,226

U. S.Gov-ern-

mentsecu-rities

4,3124,4544,1554,0223,8634,0854,0614,0954,1255,0025,3435,5645,3195,628

1,0941,1351,006

9891,1121,1501,1471,0911,2391,4661,6561,8301,7682,008

1,8361,8961,7651,6711,4841,6621,6861,7851,7272,3132,4082,3012,1332,187

1,3821,4241,3841,3611,2671,2731,2291,2191,1591,2241,2791,4331,4181,432

Othersecu-rities

6,2175,9945,8985,7275,9215,8526,3806,6396,8646,8866,7636,6355,9965,786

839838813817979897

1,0561,1071,1971,1961,1451,202

9281,025

2,0081,8401,8461,7171,7691,7541,9992,1612,3082,3642,3422,2602,0931,966

3,3703,3163,2403,1933,1723,2023,3263,3703,3593,3263,2763,1722,9742,749

Totalloans

se-cured

bystocksand

bonds*

TOTAL—ALL MEMBERBANKS

1928—Dec. 311929—Mar. 27

June 29_ _-Oct. 4 .Dec. 31

1930—Mar. 27 -June 30Sept. 24Dec. 31

1931—Mar. 25June 30Sept. 29 _ . . .Dec. 31

1932—June 30

N E W YORK CITY 3

1928—Dec. 311929— Mar . 27

June 29Oct. 4_Dec. 31 -

1930—Mar. 27June 30Sept. 24Dec. 31- -_

1931—Mar. 25June 30_ _Sept. 29Dec. 31June 30

OTHER RESERVE CITIES

1928—Dec. 31 _ __1929—Mar. 27__

June 29_Oct. 4 .Dec. 3 1 . - -

1930—Mar. 27.June 30 __Sept. 24Dec. 31 — .

1931—Mar. 25June 30Sept. 29Dec. 31June 30

" C O U N T R Y " BANKS

1928—Dec. 311929— Mar . 27

June 29Oct. 4Dec. 31

1930—Mar. 27June 30Sept. 24Dec. 31

1931—Mar. 25.June 30_Sept. 29Dec. 31June 30.

10,1729,69310,09410,31410, 50510,33410, 65610, 5119,7549,2728,5638,0817,3205,916

3,4912,9713,3963,1913,5623,5043,9833,7983,5503,3973,0262,7802,4741,757

4,3814,2924,2214,4294,3974,3684,3064,3873,9913,7293,4593,3173,0502,585

2,3002,4292,4802,6942,5452,4622,3672,3262,2132,1472,0781,9851,7961,574

1 Loans (secured by stocks and bonds) to brokers and dealers in securities at New York City.2 Including loans to banks secured by stocks and bonds, reported separately after 1929 and estimated for preceding dates as one-half of total

loans to banks.3 Central reserve city banks only.

Back figures.—This classification of loans is not available for dates prior to Oct. 3, 1928, but comparable figures of total loans secured by stocksand bonds are given for June 30, 1925-1928, in the board's Annual Report for 1928 (Table 52); for separate figures of United States Governmentsecurities and other securities back to 1914, see Annual Report for 1930 (Table 47).



ALL BANKS IN THE UNITED STATES—TOTAL LOANS AND INVESTMENTS, DEPOSITS

{In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all privatebanks under State supervision. For back figures see BULLETIN for May, 1931 (p. 253), and Annual Report for 1930 (Tables 42-43)]

Date

Total loans and investments

All banks

Total Loans Invest-ments

Member banks

Total Loans Invest-ments

Nonmember banks

Total LoansInvest-ments

Deposits (exclusive ofinterbank deposits)

Allbanks

Mem-ber

banks

Non-memberbanks

1928—June 30.Oct. 3 . . .Dec. 31.

1929—Mar. 27.June 29.Oct. 4. . .Dec. 31.

1930—Mar. 27.June 30.Sept. 24.Dec. 31.

1931—Mar. 25.June 30.Sept. 29.Dec. 31.

57.26557, 21958.266

58,01958,47458,83558,417

57,38658,10857,59056,209

55,92455,02153,365• 49, 704

39,46439, 67140, 763

40, 55741, 51242,20141,898

40, 68640,61839, 71538,135

36,81335,38433, 750' 31,305

17, 80117, 54917, 504

17,46216,96216, 63416,519

16,70017,49017,87518, 074

19, 11119, 63719, 615• 18,399

35, 06134,92935,684

35, 39335, 71135,91435,934

35,05635, 65635,47234,860

34,72933,92333,07330, 575

24,30324,32525,155

24,94525,65826,16526,150

25,11925, 21424, 73823, 870

22,84021, 81620,87419, 261

10, 75810,60410,529

10,44810,0529,7499,784

9,93710,44210, 73410,989

11,88912,10612,19911,314

22, 20422,29122,582

22,62622, 76322,92222,483

22,33122,45322,11821,349

21,19521,09920,292

' 19,129

15,16115,34615,607

15, 61215,85316, 03615,748

15, 56815, 40414,97714,264

13,97413, 56812, 876• 12,045

7,0436,9456,975

7,0136,9106,8856,735

6,7637,0487,1417,085

7,2227,5317,416

' 7, 084

53,39853,72056,766

54,54553,85255,18055,289

53,18554,95452,78453,039

51,42751,78249,152• 45,821

32,13332,13834,826

33,21532, 28433,00433,865

32,08233, 69031,83932, 560

31,15331,56629,46927, 432

21, 26521,58221,940

21,33021, 56722,17621,423

21,10321,26420,94520,479

20,27420,21619,683

' 18,389

r Revised.

NUMBER OF BANKS

Date

1925—Dec. 31.

1926—Dec. 31.

1927—Jtme 30.Dec. 31.

1928—June 30.Dec. 31.

1929—June 29.Dec. 29.

1930—June 30.Dec. 31.

1931—June 30.Sept. 29.Dec. 31.

Total i

28,257

27,367

26,76526,416

25,94125, 576

25,11024, 630

23,85222, 769

21,90321, 29419, 966

Member banks

Total

9,489

9,260

9,0999,034

8,9298,837

8,7078,522

8,3158,052

7,7827,5997,246

Na-tional

8,048

7,906

7,7907,759

7,6857,629

7,5307,403

7,2477,033

6,8006,6536,368

State

1,441

1,354

1,3091,275

1,2441,208

1,1771,119

1,0681,019

982946878

Non-mem-ber

banks

18, 768

18.107

17,66617,382

17, 01216, 739

16,40316.108

15, 53714, 717

14,12113, 695• 12, 720

i All banks in the United States; includes national banks, State com-mercial banks and trust companies, mutual and stock savings banks, andall private banks under State supervision.

' Revised.

BANK LOANS AND INVESTMENTS, PERCENT-AGE DISTRIBUTION

[Figures for Dec. 31, 1931]

All banks in the United States

Member banks—total__

Reserve city banks (62 cities)Central reserve city b a n k s -

New York CityChicago

Other reserve city b a n k s -New York City._ _.Chicago

Other Federal reserve bank cities(10 cities)

Federal reserve branch cities (25cities) __

Other reserve cities (25 cities)"Count ry" banks i _

Nonmember banks

Numberof banks Amount

(millionsof dollars)

'19,966

7,246

403

3912

923

97

13390

6,843

'12,720

Total loans andinvestments

'49,704

30,575

19,576

7,4601,517

3169

5,200

4,0991,200

10, 999

'19,129

Percent-age dis-

tribution

100

62

153

10

222

' 3 8

1 Includes certain outlying banks in reserve cities.' Revised.



REPORTING MEMBER BANKS IN LEADING CITIES[In millions of dollars. Monthly data are averages of weekly figures]

Month or date

Total—all weekly reporting member banks

Loans and investments

TotalLoanson se-

curities

Allotherloans

Investments

Total U.S. se-curities

Bor-row-ingsat

F. R.banks

New York City

Loans and investments

TotalLoanson se-

curities

Allotherloans

Investments

Total U.S. se-curities

Bor-row-ingsat

F. R.banks

Other leadingcities

Totalloans

and in-vest-

ments

Bor-row-ingsat

F. R.banks

1931—MarchAprilMayJuneJuly.AugustSeptember.October.. _November.December.

1932—January...February..MarchAprilMayJuneJuly

May 4May 11.._.May 18.._.May 25....

June 1June 8June 15June 22....June 29 . . -

July6July 13. . . .July 20-...July 27.. . .

22,83922,94222, 71322,43922, 39322,09322, 07821,42521, 02320, 749

20,17819, 77519, 43419, 09619,11218,87718,419

7,3027,1576,9986,7706,6316,4806,4135,9715,8595,763

5,6445,4975,3885,1504,9754,8114,616

8,1508,0407,8937,8537,9647,9007,8707,6797,5867,441

7,3317,2146,9876,8206,7276,6096,455

7,3877,7457,8227,8167,7987,7137,7957,7757,5787,545

7,2037,0647,0597,1267,4107,4577,348

3,6383,9133,9574,0484,1214,0744,1544,1714,0724,127

3,9433,8563,8663,8754,1214,2004,144

352628564475127398404499

469484368277185191212

7,9757,8897,8757,6947,7807,6337,7447,4667,2587,165

6,9216,6456,5216,4926,6476,5416,353

3,1763,0803,0392,8462,7642,6402,657

2,2772,237

2,2092,1272,0651,9471,8511,7451,644

2,2952,2422,1942,2042,3652,3702,3752,2722, 2432,218

2,2202,1712,0782,0292,0381,9951,896

2,5042,5672,6422,6442,6512,6232,7122,8252,7382,710

2,4922,3472,3782,5162,7582,8012, 813

1,3911,4141,4601,5231,6081,6001,6521,7501,7051,732

1,6311,5211,5471,6201,7971,8491,860

19,27719,14019, 03718, 994

19, 01618, 71219, 08718,81918, 75418, 53218,47818, 33318,334

5,0634,9774,9504,910

4,9074,7984,8284,7784,745

4,6324,6264,6184,587

6,7796, 7406,7116,678

6,7246,5996,6876,5196,518

6,4846,5236, 4106,405

7,4357,4237,3767,406

7,3857,3157,5727,5227,491

7,4167,3297,3057,342

4,1634,1444,0934,084

4,0324,0774,3384,2984,254

4,2104,1234,1074,136

205175180178

197207198189167

197207229214

6,7276,6736,6046,583

6,6356,4306,6456,4626,534

6,4206,3916,2856,317

1,9081,8451,8401,810

1,8151,7371,7591,7201,696

1,6471,6501,6481,630

2,0552,0452,0392,015

2,0601,9662,0651,9251,957

1,9171,9561,8511,862

2,7642,7832,7252,758

2,7602,7272,8212,8172,881

2,8562,7852,7862,825

1,8201,8261,7591,781

1,7771,7891,8781,8811,921

1,9011,8311, 8391,870

14,86415,05314,83814, 74514,61314,46014, 33413,95913, 76513, 584

13, 25713,13012, 91312,60412,46512,33612, 066

12, 55012, 46712, 43312, 411

12, 38112,28212,44212, 35712, 220

12,11212, 08712,04812,017

352628564472124324388416

435461365277185191212

205175180178

197207198189167

197207229214

BROKERS' LOANSREPORTED BY THE NEW YORK STOCK EXCHANGE[Net borrowings on demand and on time. In millions of dollars]

End of month

JanuaryFebruaryMarch...

April .May

JulyAugust __September

OctoberNovemberDecember

Total

1931

1,7201,8401,909

1,6511,4351,391

1,3441,3541,044

796730587

1932

512525533

379300244

242

From NewYork banks

and trust com-panies

1931

1,5571,6461,692

1,4661,2931,221

1,1711,160

932

688582455

1932

374385391

300243194

195

From privatebanks, brokers,foreign banking

agencies, etc.

1931

163194217

185141170

173194112

108148132

1932

138140142

795749

47

Back figures.—See Annual Report for 1930 (Table 57).

MADE BY REPORTING MEMBER BANKS IN N. Y. CITY

[In millions of dollars. Monthly data are averages of weekly figures]

Month or date

1931—JulyAugustSeptember.October...November.December.

1932—January...February..MarchApril

sMayJuneJuly_.

Juiy6July 13. . . .July 20..,.July 27.. . .

Total

1,4341,3421,268

921802655544495531500436377335

333345332331

Forown ac-count

1,062951943674588554473417432423385342309

305317307306

For ac-count ofout-of-town

banks *

20422617490

1248865729470442918

19201717

For ac-count ofothers

168165151157901366577

i Member and nonmember banks outside New York City (domesticbanks only).




ACCEPTANCES AND COMMERCIAL PAPER

BANKERS' ACCEPTANCES OUTSTANDING (DOLLAR AC-CEPTANCES)


End of month

1930—MarchAprilM a yJune . . . __JulyAugustSeptember..OctoberNovember..December-_

1931—JanuaryFebruary, __MarchAprilM a yJuneJulyAugustSeptember..OctoberNovember..December..

1932—JanuaryFebruary. __March _AprilMayJuneJuly

Total

out-stand-

ing

1,5391,4141,3821,3051,3501,3391,3671,5081,5711,556

1,5201,5201,4671,4221,4131,3681,2281,090

9961,0401,002

974

961919911879787747

Held by Fed-eral reserve

banks

Forownac-

count

277209184127129167208141143328

8985

123162124

953970

420647418305

1197636164

36"12

Forac-

countof for-eign

corre-spond-

ents

482465463470479471432433429439

44745643140938034124322810099

126251

3143123352921839859

Held by group of ac-cepting banks

mA i .Q l

l otai

167158166205279267317384493371

571550472410464554668606410230296262

332343377455510518

Ownbills

725563646395

131172180

90

134151131125171196232168162112125131

159175155188225200

Billsbought

95103103141216172186212313282

437398341285293357436438248118171131

174168222268286318

Heldb y

others

613582570503463434411550507417

412429440441444379278186

6763

161156

195189163115

9096

» Preliminary.

Figures for acceptances outstanding (and held by accepting banks)from American Acceptance Council.

Back figures.—See Annual Reports for 1929 (Table 58) and 1928 (Table61).

ACCEPTANCES PAYABLE IN FOREIGN CURRENCIES-HOLDINGS OF FEDERAL RESERVE BANKS


End of month

January.._February..MarchAprilMayJuneJulyAugustSeptember.October...November.December.

1929 1930 1931 1932

1,0191,0291,0361,0361,0401,0432,061

12, 34616,95517, 064

1,0271,030

1,0351,0381,0401,0541,0581,0641,0651,0711,075

21, 58331, 58735, 983

36,11923,958

1,0631,0741,073

10, 55134, 371

145, 21548,80433, 50133, 38633, 429

33,44433,47830, 77830, 73630,83730,76230,645

Back figures—See Annual Report for 1928 (Table 12), 1927 (Table 12),1926 (Table 24), etc.

CLASSES OF BANKERS' ACCEPTANCES (DOLLARACCEPTANCES)


End of month

OUTSTANDING

1931—May.June . .JulyAugustSeptemberOctoberNovemberDecember


HELD BY F. R. BANKS(OWN ACCOUNT) 1

1931—May..JuneJuly.. __AugustSeptemberOctoberNovemberDecember

1932—JanuaryFebruaryMarchApriL.MayJune ,

Total

1,4131,3681,2281,090

9961,0401,002

974

961919911879787747

124953970

420647418305

1197636165

36

T3 A

im-

intoU S

207202186178174173158159

15014212911810397

20157

1068

1056143

16942

(2)4

Basedon ex-portsfromU.S.

361349330276257261254222

207195205199184173

181669

55936655

191262

(2)6

Basedon goodsstored inUnitedStates(ware-house

credits)or

shippedbetweendomes-

ticpoints

264254238202190238258267

272271267251217193

191788

881299984

32271263

19

Dollarex-

change

7569524337383431

342623171513

6523

17241614

211111

Basedon

goodsstored

inforeigncoun-

tries orshipped

be-tweenforeignpoints

505494423391338330298296

298284287294269271

59391638

185285170104

4725135

(*)

i Total holdings of Federal reserve banks include a small amount ofunclassified acceptances.

« Less than $500,000.

Back figures.—See Annual Report for 1930 (Tables 61 and 14).

COMMERCIAL PAPER OUTSTANDING


End of month

January ___February.March . . , .AprilMay _JuneJuly_AugustSeptember.OctoberNovember.December..

1929

407411387351304274265267265285316334

1930

404457529553541527528526513485448358

1931

327315311307305292289271248210174118

1932

108103106108111103




BANK SUSPENSIONS AND BANKS REOPENED

Year and month

Banks suspended

Number

Allbanks

Members

Na-tional State

Non-mem-bers

All banks

Deposits (in thousands of dollars)

Members

National State

Non-mem-bers

Banks reopened

Number

Allbanks

Mem-bers

Non-mem-bers

Deposits (in thousands ofdollars)

Allbanks

Mem-bers

Non-mem-bers

1921192219231924 _192519261927.19281929.19301931

1930—November.December.

1931—January...February..MarchAprilMayJuneJulyAugustSeptemberOctober. _.November.December.

1932—January...February..MarchApril.MayJune.. . __-July

501354648776612956662491642

1,3452,298

254344

2027786649116793158305522175358

342'125

47'73'82' 149

514590122118125915764161409

2649

2015181724261629461003563

74267614

'44

19123437283533161726108

77

431297524617466796538418561

1,1581,781

221

1765767446513175117243397132277

255'934062

'62' 101P105

196,460110, 721188, 701213, 338172,900272,488193, 891138, 642234,532864, 715

1, 691, 510

186, 306367,119

76,55334, 61634, 32041,68343, 210190,48040, 745180, 028233, 505471, 38067, 939277,051

219,071' 65,72015,289

' 31,262' 34, 409• 135,864v 55,604

21, 28519,09232,90460,88958, 53747,86646, 58131, 61937,007173, 290439,171

62,37344,884

14,5695,82210, 89919,49812, 32031,3687,045

31, 62979,446111,08828, 03987,448

63,68622,6284,4842,6346,258

' 42,627p17,938

21,2185,15118,32413,5808,72720,94619, 75510, 62120,128207,150294, 357

35, 742163, 993

7,6157,901108

2,2645,05539,4341,805

52, 66030, 272117, 2594,21625,768

10,873' 8,427

' 11,887'1,237' 7,589v 1,702

153, 95786,478137,473138, 869105, 636203, 676127,55596, 402177, 397484,275957, 982

88,191158, 242

54,36920,89323,31319, 92125, 835119, 67831, 89595, 739123, 787243,03335,684163, 835

144,512' 34,66510,805

r 16,741' 26,914' 85,648v 35,964

6065379462149953958147276

2343

58493128

243

3610343

'5

5041237448135843453140245

2243

5543292473946

201728

1640281918

' 17

17,49335, 56511, 67422,46216, 61860,61035, 72915, 72725, 82961, 599158,187

6,97816,340

19,32217,15711,78823, 6133,89024, 5222,52514, 3964,2585,09613,04118,579

10,95219,60119,59011,04132,332' 11,373P 68,134

3,13211,6185,0687,1906,7798,1798,3116,6102,2733,538

53, 944

208

14, 36123, 947

1,8563,3333,38115,893

40123,816

9913,684589

3,2934,9449,7141,7934, 2192,891

15, 678

15, 2729,83952,43127,4189,11723,55658,061104, 243

6,77016, 340

17,46613,8248,4077,7203,489

7062,525

14, 3964,2584,1059,357

17,990

7,65914,6579,8769,248

28,113'8,482

P 52,456

» Preliminary. «• Revised.Banks suspended and banks reopened.—The statistics of bank suspensions relate to banks closed to the public, on account of financial difficulties,

by order of supervisory authorities or directors of the bank. Some banks reopen before the end of the calendar month in which they were closed;such banks are included in the record of suspensions for the month as given in the table. Reopenings are recorded as of the month in which theyoccur, and include for any given month reopenings both of banks closed during the month and of banks closed earlier.

Deposits.—Figures of deposits in banks suspended are as of date of suspension whenever data as of this date are available; otherwise they areas of the latest available call date prior to suspension. For banks reopened the figures of deposits are not as of date of reopening, which are seldomavailable, but are taken from the record of suspensions.

Back figures—See annual report for 1930 (Tables 66 and 67).

MEMBER BANK HOLDINGS OF ELIGIBLE ASSETS


Call date

Holdings of Government securities l and eligible paper (including paper under rediscount)

By reserve city banks

U.S.Govern-ment se-curities

Eligiblepaper Total

By "country" banks


Eligiblepaper Total

By all member banks


Eligiblepaper Total

Memberbank

borrow-ings atFederalreservebanks

1928—Dec. 3 1 . . . .1929—Mar. 27....

June 29Oct. 4Dec. 3 1 . . . .

1930—Mar. 27....June 30Sept. 24....Dec. 31 . . . .

1931—Mar. 25....June 30....Sept. 29...Dec. 31 . . . .

2,7302,8322,5772,4692,4032,6192,6402,6822,7773,5843,8713,9423,706

2,3492,5822,6882,8652,7132,5422,2852,2712,1002,0451,8701,7871,505

5,0795,4145,2655,3345,1165,1614,9254,9534,8775,6295,7415,7295,211

932974929912814818772764708776836994

1,8111,7611,7731,7331,6841,6621,6201,5411,4381,3731,3281,2091,068

2,7442,7352,7022,6452,4982,4802,3922,3052,1462,1492,1642,2032,056

3,6623,8073,5063,3813,2173,4383,4123,4463,4854,3604,7074,9364,694

4,1604,3434,461

4,3974,2043,9053,8123,5383,4183,1982,9962,573

7,8228,1507,9687,9797,6147,6427,3177,2587,0237,7787,9057,9327,267

1,041981

1,029899646206274173248165147323623

* Exclusive of approximately $650,000,000 of Government securities pledged against national bank note circulation.Back figures.—See BULLETIN for March, p. 156.



FEDERAL RESERVE BANK RATES

DISCOUNT RATES

[Rates on all classes and maturities of eligible paper]

Federal reserve bank

BostonNew York....Philadelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis..Kansas City..DallasSan Francisco

Rate ineffect onAug. 1

3H

Date estab-lished

Oct.JuneOct.Oct.Jan.Nov.JuneOct.Sept.Oct.Jan.Oct.

17.193124.193222,193124.193125.193214.193125.193222,193112.193023.193128.193221,1931

Previousrate

333433H2H434


BUYING RATES ON ACCEPTANCES

[Buying rates at the Federal Reserve Bank of New York]

Maturity

1-15 d a y s . . .16-30 d a y s . .31-45 d a y s . .46-60 d a y s . .61-90 d a y s . .91-120 days .121-180 days

Rate ineffect onAug. 1

11111

IXUS

Date estab-lished

June 24, 1932do

.. . .do.—.do.—.do

do... .do

Previousrate

2lA

NOTE.—Rates on prime bankers' acceptances. Higher rates may becharged for other classes of bills.

OPEN-MARKET RATES

RATES IN NEW YORK CITY

Month or weekPrimecom-

mercialpaper,4 to 6

months

1931MayJuneJulyAugustSeptemberOctoberNovember _December

1932JanuaryFebruaryMarchApr i l——.MayJuneJuly.

Week ending-July 2July 9July 16July 23July 30

Prevailing rate on—

2 ~2y2222

3^-4

234-2%

Primebank-

ers'accept-ances,

90days

H

Timeloans,

90days*

l t f -2

3 -43 -4

2 -31^-2

Average rate

Call loans *

New

1.451.501.501.501.502.102.502.73

2.612.502.502.502.502.502.08

2.502.252.002.002.00

Re-newal

1.451.501.501.501.502.102.502.70

2.652.502.502.502.502.502.08

2.502.252.002.002.00

Average yield

U.S.Treas-

urynotesand

certifi-cates,3 to 6

months

«.55.41.42

*.451.701.77

«2.41

2.482.42

* 2.251.11.31

«.34.22

.33

.22

.10

.26

.29

Treas-ury

bonds >

3.313.303.323.343.423.713.693.92

4.274.113.923.743.773.783.65

3.733.703.673.653.59

1 Stock exchange call loans; new and renewal rates.2 Stock exchange 90-day time loans.3 3 issues—SH, ZH, 4 per cent; yields calculated on basis of last redemp-

tion dates—1947, 1956, and 1954.* Change of issues on which yield is computed.Back figures.—See Annual Report for 1930 (Tables 36 and 37).

RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES

[Weighted averages of prevailing rates]

Month

JanuaryFebruaryMarchApriL.MayJuneJ u l y -AugustSeptemberOctoberNovemberDecember

New York City

1928

4.564.444.594.724 975.095.385.565 635 635 565.63

1929

5.745.735.815.855.885.935.886.056.066 085 865.74

1930

5.645 355.224.914 744.594.484.414 294 264 174.16

1931

4.244.314.204.174.114.134.053.973 934 274 674.64

1932

4.714.714.724.694.554.614.42

8 other northern and eastern c

1928

4.734.764.814.915 045.365.575.595 805 805 825.91

1929

5.875.865.916.006.096.026.086.116.246 256 125.94

1930

5.885.665.475.225.135.064.814.794.744 754.664.68

1931

4.614.634.624.574.554.494.484.474.484 624.874.91

;ities

1932

5.075.135.145.105.145.135.05

27 southern and western cities

1928

5.535.535.545.545.565.675.775.805.825.875.905.91

1929

5.945.966.046.076.106.166.176.226.276.296.296.20

1930

6.126.055.985.865.755.695.635.585.555.545.505.43

1931

5.505.435.405.365.265.345.305.285.325.385.535.56

1932

5.615.615.645.635.645.655.63

NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given inpreceding table). All averages are based on rates reported for 3 types of customer loans—commercial loans, and demand and time loans on securities.The method of computing the averages takes into account (a) the relative importance of each of these 3 types of loans and (6) the relative importanceof each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is weighted according to theimportance of that city in the group, as measured by the loans of all banks in the city.




SECURITY PRICES AND SECURITY ISSUESSECURITY PRICES

[Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures]

Month or date

Number of issues

1931—MayJuneJulyAugustSeptember. . . .OctoberNovember . __December

1932—January .FebruaryMarchApril _MayJune „ _ . .July

June 29July 6 . . .July 13July 20July 27

Bonds1

66

99.799.499.498.595.689.489.081.681.080.380.879.475.272.274.2

72.272.373.574.476.4

Pre-ferredstocks2

20

122 6119.7121.1120 7116.1109.4108.599 196.596.396.294.290 383.685.3

82.482.983.885.189.4

Total

421

989598968270725858565744403436

3333353540

Indus-trial

351

898790897665685454535442383436

3233353540

Rail-road

33

777475665648463337343222171416

1314151618

Publicutility

37

156153158154132112115

9694939373685555

5353535461

Common stocks (192C = 100)

Selected groups of industrial issues

Auto-mobile

13

1101011051038570756564605534302626

2424252628

Build-ing

equip-ment

12

595860584738393131302922201819

1717181821

Chainstore

16

898989928070695757565849423536

3434353540

Chem-ical

11

12712813112711090967980798561524850

4646494955

Cop-perand

brass

8

676266615043453536323022201720

1619202022

Elec-tricalequip-ment

4

1591571611551321131149485777757524043

3939404152

Ma-chin-ery

10

898388847259614648474737332930

2829302934

Oil

15

636367706053574443424538393742

3739414248

Steel

10

948588817259594132323223201618

1616161721

Tex-tile

28

474546454036363131313126222

2020212124

1 Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity.> 20 high-grade industrials; average price.

CAPITAL ISSUES[Long-term; i. e., 1 year or more. In millions of dollars]

Year and month

19231924192519261927 . . .19281929 .19301931

1931—JuneJulyAugustSeptember. .OctoberNovember. .December. .

1932—JanuaryFebruary . . .MarchAprilMayJune

New issues

Total(do-

mesticandfor-

eign)

4,4375,5576,2016,3147,5568,040

10, 0916,9093,099

26022512024545

112123

18473

162719178

Domestic

To-ta l i

4,0164,5885,1255,1896,2196,7899,4206,0042,860

22522312022145

110123

18473

162719178

Stateandmu-nici-pal

1,0431,3801,3521,3441,4751,3791,4181,4341,235

1199374

114165444

13835

109308474

Corporate

Bondsand

notes

1,9762,2002,4522,6673,1832,3852,0782,9801,240

1001133494142628

4235471574

Stocks

659829

1,1531,0871,4742,9615,9241,503

311

62

12124

2439

441000

For-eign

421969

1,0761,1251,3371,251

671905229

3520

• 24020

000000

Re-fund-

ingissues

(do-mesticandfor-

eign)

682759925

1,0462,2201,8581,422

711949

144457

431

2121

142129723264

i Includes issues of Federal land banks and Federal intermediate creditbanks, not shown separately.

Sources.—For domestic issues: Commercial and Financial Chronicle;for foreign issues (issues publicly offered) annual totals are as finallyreported by Department of Commerce,* while monthly figures are ascompiled currently and are subject to revision.

UNITED STATES GOVERNMENT SECURITIES[In millions of dollars]

Month

1931FebruaryMarch _AprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

Total (12 months).

January..February-MarchAprilMayJuneJuly

1932

Outstanding at endof month

Total

15,97916,28016,36816, 24516, 52016, 52216,58517,04817,02817, 04017, 528

17,51517, 82018,19018,28718, 72919,16119,297

Bondsandnotes

14,57313,83813, 56713,32314,15214.17814.17914.98014.98114, 95515, 092

15,10215,10215.10215.10315, 31815,71515, 744

Certif-icatesandbills

1,4062,4422,8012,9222,3682,3442,4062,0682,0472,0852,436

2,4132,7183,0883,1843,4113,4463,553

Increase or decrease(—) during month

Total

30188

-123275

263

463- 2 0

12488

1,754

-1330537097442432136

Bondsand

notes

-21-735-271-244829261

8011

-26137

638

10

121539729

Certif-icatesandbills

871,036

359121

-554- 2 4

62-338- 2 1

38351

1,116

- 2 330537096

22735

107

NOTE.—Figures relate to interest-bearing public debt; matured non-interest-bearing debt amounted to $314,000,000 at the end of July, 1932.Figures include obligations held in Government trust funds amountingto $407,000,000 at the end of July, 1932.

Bonds and notes are long-term—i. e., 1 year or more (figuring fromdate of issue); certificates and bills, shorter term.


AUGUST, 1932 FEDEKAL RESERVE BULLETIN 495

PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES[Index numbers; 1923-1925 average=100. The terms adjusted and unadjusted refer to adjustment for seasonal variation!

V A

month

1919192019211922192319241925 _ _19261927192819291930 _ .1931

1928June .JulyAugust...SeptemberOctober. _NovemberDecember

1929January..February.MarchAprilMay .JuneJulyAugust...SeptemberOctober. _NovemberDecember

1930January..February.MarchAprilMay ..JuneJulyAugust. _SeptemberOctober. _NovemberDecember

1931January..February.MarchAprilMayJuneJuly .August...SeptemberOctober. _NovemberDecember

1932January..February-MarchAprilMayJune

Industrial production *

Total *

Unad-justed

83876785101951041081061111199681

108105110116118115109

11712112412412612512012212312110896

10310910610710599919092908477

82878990898380787775'7268

7171686461

Ad-justed

108109110113115117118

119119119121122125124121121118110103

10610710410410298939090888684

838687888783827876737374

7269676360

Manufactures1

Unad-justed

84876786101941051081061121199580

109105110116117115110

11712212612812812712012212311910793

10211010911010698898890878274

81889191908379777672'7066

7070666360

*59

Ad-justed

109110111114116118120

120119120122123127125122121119110101

10510710410410197928989868582

838687878782827875717173

7168646158

Minerals *

Unad-justed

7789707410596991081071061159984

104104111115123118106

114116101103116116118121127127114110

10810491941021031001011011059689

868482838485858282'90'83'79

7475777265

Ad-justed

102102105107111114111

116119109114117114116115118116110116

110108981041041021009694959293

888689918786867977

'8281

'84

7778847967

Building contracts awarded(value)*

Total

Unad-justed

6363567984941221291291351179263

154142137138134122107

981021211391431441361291121049484

78891021131251161078582756859

586877827874686359524330

252326313132

Ad-justed

139132131134136132127

120118121123121126124122110107103102

9510410210110599958181787673

717977736563615959554938

312726272627

Residential

Unad-justed

443044688195124121117126875037

14012711611811511293

8184106117113102948473676653

464454626154484852514637

374250524741363232292620

161516161412

Ad-justed

133126119118115114106

97941011009795938673676761

564952535249474952524843

444747444037353332302723

191715141211

All other

Unad-justed

79906588869412013513914214212584

166155154154150130117

111116133158168178170166144135116109

104126141156178166155115108948677

758998107104101948781715739

333035434547

Ad-justed

144137141147152146145

139137137142141152149152140139132136

128148144140148140135106105999998

93104100868584828180766750

413536383739

Factory em-ployment 3

Unad-justed

10710882901049610010199971018874

9696981001009998

971001011021021021021041051039995

939393939189868586848179

767778787775747475716968

666766646159

Ad-justed

979797989899100

1001001011021021031031031021019997

969493929190878483828180

787878787876757473706969

686866646260

Fac-torypay

rolls 3

Unad-justed

981187781103961011041021021088766

10198103104107104104

101108111111111110106111112Hi10399

949898979491838283817574

687375747268646462595656

525452494643

Freight-carloadings * *

Unad-justed

84917987100971031061031031069275

10110510911911910994

95999810210911011111512111810289

899190939795959699978674

747475777977787678787061

585958575352

Ad-justed

100102103105106107106

108107105108107108107107106104102102

1009996979693928987868484

828080807977767269696869

646261595453

Coni-

ityprices'

1391549897101981041009597958673

97979899979696

969596969595979696959493

939190908987848484838180

787776757372727271707069

676666666464

' Revised * Average per working day.» Preliminary.1 For indexes of groups and separate industries see p. 552; for description see BULLETIN for February and March, 1927; for back figures see

BULLETIN for March, 1932, p. 194.2 3-month moving average, centered at second month; for description and back figures see BULLETIN for July, 1931, p. 358.3 For indexes of groups and separate industries see p. 555; for description and back figures see BULLETIN for November, 1929, and November, 1930.4 For indexes of groups see p. 496; for back figures see BULLETIN for February, 1931, p. 108.« Revised index of Bureau of Labor Statistics (784 price series), 1926= 100. Index numbers for groups of commodities are given on p. 556.



MERCHANDISE EXPORTS AND IMPORTS[In millions of dollars]

Month

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

Year

Merchandise exports

1928

411371421364423389379379422550545476

5,128

1929

488442490425385393403381437529442427

5,241

1930

411349370332320295267298312327289275

3,843

1931

250224236215204187181165180205194184

2,424

1932

150154155135132

*115

Merchandise imports

1928

338351380345354317318347320355327339

4,091

1929

369369384411400353353369351391338310

4,399

1930

311282300308285250221218226247204209

3,061

1931

183175210186180173174167170169149154

2,091

1932

136131131127112

» 121

Excess of exports

1928

7320401969716132

102195218136

1,037

1929

11972

10615

- 1 540501186

137104117

842

1930

1006769243544467986808566

782

1931

6649262924146

—210364430

334

1932

152324

920

P — 6

*» Preliminary.

DEPARTMENT STORES—SALES, STOCKS[Index numbers; 1923-1925 average =100]

Month

JanuaryFebruaryMarchAprilMay . .JuneJulyAugustSeptemberOctober ._NovemberDecember

Year

Index of sales 1

Adjustedfor seasonalvariation

1931

979897

1069795918884868381

1932

787872807371

Withoutseasonal ad-

justment

1931

798092

10197906567879395

142

91

1932

646470767367

Index of stocks (end ofmonth)

Adjustedfor seasonalvariation

1931

888684838382817981807978

1932

757370706868

Withoutseasonal ad-

justment

1931

788187878580757684888973

82

1932

676972727066

1 Based throughout on figures of daily average sales—with allowancefor changes from month to month in number of Saturdays and for 6national holidays: New Year's Day, Memorial Day, Independence Day,Labor Day, Thanksgiving Day, and Christmas. Adjustment for sea-sonal variation makes allowance in March and April for the effect?upon sales of changes in the date of Easter.

Back figures.—See BULLETIN for November, 1930.9 Prelminary.

FREIGHT-CAR LOADINGS, BY CLASSES[Index numbers; 1923-1925 average=100]

TotalCoalCokeGrain and grain prod-

uctsLivestockForest products. .Ore _MiscellaneousMerchandise *

TotalCoalCoke __Grain and grain prod-

ucts _LivestockForest products. .Ore. _ _M iscellaneousMerchandise i

1932

Febru-ary March April May June

Adjusted for seasonal variation

626145

786027296278

617148

725627285775

596232

866126185673

544826

765424

45471

4527

665322

65471

Without seasonal adjustment

596652

745727

75375

586748

624927

75475

575231

665627

95775

534226

625126

75674

52

584524105071

i In less-than-carload lots.Based on daily average loadings. Source of basic data: American

Railway Association.Baek figures.—See BULLETIN for February, 1931, pp. 108-110.



FOREIGN BANKING AND BUSINESS CONDITIONSFINAL ACT OF THE LAUSANNE CONFERENCE

The final act of the Lausanne Conference,which was in session from June 16 to July 9,1932, is as follows:

The Lausanne Conference was convoked onthe invitation of the Governments of Germany,Belgium, France, the United Kingdom ofGreat Britain and Northern Ireland, Italy, andJapan. In accordance with the announcementmade at Geneva on February 13, 1932, onbehalf of those Governments, the object of theconference was as follows: " * • * * to agreeto a lasting settlement of the questions raised inthe report of the Basel experts and on meas-ures necessary to solve the other economic andfinancial difficulties which are responsible forand may prolong the present world crisis.

"This decision has been reached by theabove Governments in the hope that it willease the international situation/7

The conference was opened at Lausanne onJune 16, 1932, by His Excellency M. GiuseppeMotta, President of the Swiss Confederation;M. Jules Dufour, President of the Governmentof the Canton of Vaud, and M. Gaillard, mayorof Lausanne, being also present.

In addition to the inviting Governmentsmentioned above, the Governments of the fol-lowing countries were represented: The Com-monwealth of Australia, Canada, Greece,India, New Zealand, Poland, Portugal, Ru-mania, Czechoslovakia, the Union of SouthAfrica, and Jugoslavia. The Governments ofBulgaria and Hungary were subsequentlyrepresented at the conference.

The conference elected as its president theRight Hon. James Ramsay MacDonald, PrimeMinister of the United Kingdom; and assecretary general, Sir Maurice Hankey, G. C. B.,G. C. M. G.

The labors of the conference were inspiredby the principles laid down in the report, signedat Basel on December 23, 1931, of the specialadvisory committee convoked by the Bank forInternational Settlements, in accordance withthe request of the German Government, madeunder paragraph 119 of the experts7 plan ofJune, 1929.

On June 16, 1932, the representatives of theGovernments of the United Kingdom andNorthern Ireland, France, Italy, Belgium, andJapan signed the following declaration:

"Deeply impressed with the increasinggravity of the economic and financial perilswhich overhang the world and with the urgencyof the problems which the Lausanne Confer-

ence has met to consider; firmly convinced thatthese problems require a final and definitesolution directed to the improvement of Euro-pean conditions, and that this solution must bepursued henceforward without delay or inter-ruption, with a view to its realization in theframework of a general settlement; noting thatcertain payments of reparations and wardebts will fall due as from July 1, next.

"Are of opinion, in order to permit tbe workof the conference to proceed undisturbed, that,without prejudice to the solution which mayultimately be reached, the execution of thepayments due to the powers participating inthe conference in respect of reparations andwar debts should be reserved during the periodof the conference, which the undersigned Gov-ernments intend should complete its work inthe shortest possible time.

"I t is understood that the service of marketloans will not be affected by these decisions.

"The undersigned Governments declare thatthey, for their own part, are prepared to acton this understanding, and they invite theother creditor Governments taking part in theconference to adopt the same course."

In accordance with the invitation containedin the last paragraph of the said declaration,the Governments of the Commonwealth ofAustralia, Canada, Greece, India, New Zealand,Poland, Portugal, Rumania, Czechoslovakia,the Union of South Africa, and Yugoslaviasubsequently associated themselves therewith.

On the occasion of this declaration certainGovernments addressed to the president of theconference letters which have been placed inthe archives.

As a result of meetings held from June 16 toJuly 9, 1932, the following instruments weredrawn up:

1. Agreement with Germany.2. Transitional measures relating to Ger-

many.3. Resolution relating to non-German repa-

rations.4. Resolution relating to central and eastern

Europe.5. Resolution relating to the World Eco-

nomic and Financial Conference.The present act, of which the English and

French texts are both authentic, will remaindeposited in the archives of the Governmentof the French Republic, which will deliver acertified copy to each of the Governments whohave taken part in the conference at Lausanne,



and also to the other Governments who tookpart in The Hague Conference of 1929-30.

Done at Lausanne in a single copy.J. RAMSAY MACDONALD,

President of the Conference.M. P. A. HANKEY,

Secretary-General.

AGREEMENT WITH GERMANY

The Government of His Majesty the King ofthe Belgians, the Government of the UnitedKingdom of Great Britain and NorthernIreland, the Government of Canada, the Gov-ernment of the Commonwealth of Australia,the Government of New Zealand, the Govern-ment of the Union of South Africa, the Govern-ment of India, the Government of the FrenchRepublic, the Government of the Greek Repub-lic, the Government of His Majesty the Kingof Italy, the Government of His Majesty theEmperor of Japan, the Government of the Re-public of Poland, the Government of the Repub-lic of Portugal, the Government of His Majestythe King of Rumania, the Government of theCzechoslovak Republic, and the Government ofHis Majesty the King of Yugoslavia, (herein-after described as the creditor Governments),and the Government of the German Reich.

Recognizing that the legal validity of theagreements signed at The Hague on January 20,1930,1 is not in question; but concerned by theeconomic difficulties resulting from the presentcrisis, and being desirous to make, so far asthey are concerned, the necessary efforts toinsure the confidence which is indispensable tothe development of normal economic and finan-cial relations between the nations, the under-signed, duly authorized to that effect by theirrespective Governments, have agreed as follows:

DECLARATION

The powers signatory of the present agree-ment have assembled at Lausanne to deal withone of the problems resulting from the war,with the firm intention of helping to create anew order, permitting the establishment and de-velopment of confidence between the nationsin a mutual spirit of reconciliation, collabora-tion, and justice.

They do not claim that the task accomplishedat Lausanne, which will completely put an endto reparations, can alone assure that peacewhich all the nations desire. But they hopethat an achievement of such significance and soarduously attained will be understood andappreciated by all the pacific elements inEurope and the world, and that it will befollowed by fresh achievements.

i See BULLETIN, March, 1930.

These further successes will be more readilywon if the nations will rally to this new effortin the cause of real peace, which can only becomplete if it is applied both in the economic andin the political sphere, and rejects all possibilityof resort to arms or to violence.

The signatory powers will make every effortto resolve the problems which exist at thepresent moment or may arise subsequently inthe spirit which has inspired the presentagreement.

ARTICLE I

The German Government shall deliver to theBank for International Settlements GermanGovernment 5 per cent redeemable bonds, tothe amount of 3,000,000,000 reichsmarks goldof the present standard of weight and fineness,to be negotiated under the following arrange-ments :

(1) The Bank for International Settlementsshall hold the bonds as trustee.

(2) The bonds shall not be negotiated by theBank for International Settlements before theexpiry of three years from the signature of thepresent agreement. Fifteen years after thedate of the said signature, the bonds which theBank for International Settlements has notbeen able to negotiate shall be canceled.

(3) After the above period of three years theBank for International Settlements shall nego-tiate the bonds by means of public issues on themarkets as and when possible, in such amountsas it thinks fit, provided that no issue shall bemade at a rate below 90 per cent. The Ger-man Government shall have the right at anytime to redeem at par, in whole or in part, thebonds not yet issued by the Bank for Interna-tional Settlements. In determining the termsof issue of the bonds the Bank for InternationalSettlements shall take into account the desira-bility of giving to the German Government theright to redeem the bonds after a reasonableperiod.

(4) The bonds shall carry interest at 5 percent and sinking fund at 1 per cent as from thedate on which they are negotiated. They shallbe free of all German taxes, present and future.

(5) The proceeds of the bonds, as and whenissued, shall be placed to a special account, theallocation of which shall be settled by a furtheragreement in due cours.e between the Govern-ments, other than Germany, signatory to thepresent agreement.

(6) If any foreign loan is issued by the Ger-man Government, or with its guaranty, at anytime after the coming into force of the presentagreement, the German Government shall offerto apply up to the equivalent of one-third of thenet cash proceeds of the loan raised to the-



purchase of bonds held by the Bank for Inter-national Settlements. The purchase price shallbe such that the net yield on the bonds so pur-chased would be the same as the net yield ofthe loan so raised. This paragraph does notrefer to loans for a period of not more than 12months.

(7) If, after five years from the signature ofthe present agreement, the Bank for Interna-tional Settlements considers that the credit ofthe German Government is restored, but thequotations of its loans remain none the lessbelow the minimum price of issue fixed underparagraph (3) above, the minimum price maybe varied by a decision of the board of the Bankfor International Settlements, which decisionshall require a two-thirds majority. Further,at the request of the German Government, therate of interest may be reduced below 5 percent if issues can be made at par.

(8) The Bank for International Settlementsshall have power to settle all questions as to thecurrency and denomination of bonds issued andalso all questions as to charges and costs ofissue, which it shall have the right to deductfrom the proceeds of the issue. In consideringany questions relating to the issue of bonds theboard of the Bank for International Settle-ments shall take the advice of the president ofthe Reichsbank, but decisions may be made bya majority vote.

ARTICLE 2

On its coming into force the present agree-ment will put to an end and be substituted forthe reparation regime provided for in the agree-ment with Germany, signed at The Hague onJanuary 20, 1930, and the agreements signed atLondon on August 11, 1931, and at Berlin onJune 6, 1932. The obligations resulting fromthe present agreement will completely replacethe former obligations of Germany comprisedin the annuities of the "New Plan/7

ARTICLE 3

Consequently articles 1, 2, 4, 5, 7, 8, 9, and12 and annexes 1, 3, 4, 5 and 5 A, 6, 6A, 7, 9,10, and 10A of the said agreement with Ger-many are definitely abrogated.

ARTICLE 4

The protocol signed at London on August11, 1931, and the protocol supplementarythereto signed at Berlin on June 6, 1932, areabrogated. Consequently the provisional re-ceipts handed to the Bank for InternationalSettlements by the German Railway Co.under the said protocol of August 11, 1931,will be returned to it.

ARTICLE 5

The debt certificate of the German Govern-ment and the certificate of the German RailwayCo. referred to in article 7 and in annexes 3and 4 of The Hague Agreement shall, with thecoupons attached, be returned to the GermanGovernment and to the German Railway Co.,respectively.

ARTICLE 6

Nothing in the present agreement alters oraffects article 3 (Liquidation of the past),article 6 (so far as concerns the corporateexistence of the Bank for International Settle-ments), or article 10 (Immunities of the Bankfor International Settlements) of The HagueAgreement.

ARTICLE 7

The signatory Governments declare thatnothing in the present agreement diminishesor varies or shall be deemed to diminish or varythe rights of the bondholders of the Germanexternal loan of 1924 or of the German Govern-ment international 5% per cent loan of 1930.

Any necessary adaptation of the machineryrelating to the manner in which the obligationsof the German Government, with respect tothe German external loan of 1924 and withrespect to the German Government interna-tional 5}i per cent loan of 1930, will be dis-charged will be subject to mutual arrangementbetween the German Government on the onehand, and the Bank for International Settle-ments, fiscal agent of the trustees of theGerman external loan of 1924, and trustee ofthe German Government international 5%per cent loan of 1930, on the other hand.

ARTICLE 8

The present agreement will, on its cominginto force, be notified by the Government ofthe French Republic to the Bank for Inter-national Settlements with a view to the appli-cation by the bank of the provisions whichaffect it; the said Government will also informthe bank, for the purposes of its statutes, thatthe "new plan" is no longer in effect.

ARTICLE 9

Any disputes, whether between the Govern-ments signatory of the present agreement, orbetween one or more of those Governments andthe Bank for International Settlements, as tothe interpretation or application of this agree-ment, shall be referred to the arbitration tri-bunal set up under article 15 of The HagueAgreement with Germany. The relevant pro-visions of that article and of annex 12 of the



said agreement will for this purpose be appli-cable.

ARTICLE 10

The present agreement, of which the Englishand French texts are both authentic, shall beratified, and the ratifications shall be depositedat Paris. The Governments whose seat is out-side Europe will be entitled merely to notifythe French Government, through their diplo-matic representatives in Paris, that their ratifi-cation has been given. In that case they musttransmit the instrument of ratification as soonas possible.

As soon as the present agreement has beenratified by the Governments of Germany,Belgium, France, Great Britain, and NorthernIreland, Italy, and Japan, it shall come intoforce between those Governments whose rati-fications have been deposited or notified at thatdate. It shall come into force in respect ofevery other signatory Government on the dateof notification or deposit of ratification. TheFrench Government will transmit to all thesignatory Governments and to the Bank forInternational Settlements a certified copy ofthe proces-verbal of the deposit of each rati-fication and a certified copy of each notification

ARTICLE n »

The present agreement may be signed at anytime up to the date on which it first comes intoforce in accordance with article 10, by anyGovernment signatory to the agreement signedat The Hague on January 20, 1930. After thatdate any of the said Governments may accedeto the present agreement by means of a notifi-cation addressed to the Government of theFrench Republic, which will transmit to theother contracting Governments and to theBank for International Settlements a certifiedcopy of such notification. In that case theagreement will come into force for the Govern-ment concerned on the date of such accession.

Done at Lausanne, July 9, 1932, in a singlecopy which will remain deposited in thearchives of the Government of the FrenchRepublic, which will transmit certified copies toeach of the signatory Governments.For the Belgian Government :

RENKINPAUL HYMANSE. FRANCQUI

For the Government of the United Kingdom ofGreat Britain and Northern Ireland :

J. RAMSAY MACDONALDJOHN SIMONN. CHAMBERLAINWALTER RUNCIMAN

For the Government of Canada:G. H. FERGUSON

For the Government of the Commonwealth ofAustralia:

GRANVILLE RYRIEFor the Government of New Zealand:

THOMAS M. WILFORDFor the Government of the Union of South

Africa:C. T. TE WATER

For the Government of India:JOHN SIMON

For the French Government:E. HERRIOTGERMAIN MARTINJULIEN DURANDJOSEPH PAGANONGEORGES BONNET

For the Greek Government:For the Italian Government:

ALBERTO BENEDUCEANTONIO MOSCONI

For the Japanese Government:SHIGERU YOSHIDAS. KURIYAMAJ. TSUSHIMA

For the Polish Government:AUGUSTE ZALESKIJAN MROZOWSKI

For the Portuguese Government:For the Rumanian Government:For the Czechoslovak Government:For the Yugoslav Government:For the German Government:

F. VON PAPENC. VON NEURATHGRAF SCHWERIN VON KROSIGKWARMBOLD

IITRANSITIONAL MEASURES RELATING TO GERMANY

The duly authorized representatives of theGovernments signatories of the agreement con-cluded this day with Germany have agreed asfollows:

ARTICLE 1

As from to-day's date, the effects of the dec-laration of June 16, 1932, will be prolonged asregards the payments due by Germany underThe Hague Agreement of January 20, 1930,the London protocol of August 11,1931, and theBerlin protocol of June 6,1932. This prolonga-tion will terminate on the coming into force ofthe agreement with Germany signed to-day atLausanne, or, failing this, on any one of theGovernments of the following countries, Ger-many, Belgium, the United Kingdom, France,



Italy, and Japan, notifying the Governmentsconcerned that it has decided not to ratify.

ARTICLE 2

Negotiations will be entered into withoutdelay between the German Government andthe Bank for International Settlements in orderthat the arrangements contemplated in article7(2) of the agreement with Germany signedto-day may be prepared before its coming intoforce.

ARTICLE 3

As regards the execution, by means of de-liveries in kind, of contracts and works incourse of execution, a committee consisting ofrepresentatives of the German Government andthe Governments concerned shall be appointedto draw up such proposals as may be desirablein regard to such contracts and works.

Signed at Lausanne, July 9, 1932.For the Belgian Government:

KENKINPAUL HYMANSE. FRANCQUI

For the Government of the United Kingdomof Great Britain and Northern Ireland:

J. RAMSEY MACDONALDJOHN SIMONN. CHAMBERLAINWALTER RUNCIMAN

For the Government of Canada:'G. H. FERGUSON

For the Government of the Commonwealthof Australia:

GRANVILLE RYRIEFor the Government of New Zealand:

THOMAS M. WILFORDFor the Government of the Union of South

Africa:C. T. TE WATER

For the Government of India:JOHN SIMON

For the French Government:E. HERRIOTGERMAIN MARTINJULIEN DuRANDJOSEPH PAGANONGEORGES BONNET

For the Greek Government:For the Italian Government:

ALBERTO BENEDUCEANTONIO MOSCONI

For the Japanese Government:SHIGERU YOSHIDAS. KURIYAMA (ad referendum)J. TSUSHIMA

132689—32 3

For the Polish Government:AUGUSTE ZALESKIJAN MROZOWSKI

For the Portuguese Government:For the Rumanian Government:For the Czechoslovak Government :For the Yugoslav Government:For the German Government :

F. VON PAPENC. VON NEURATHGRAF SCHWERIN VON KROSIGKWARMBOLD

III

NONGERMAN REPARATIONS

The undersigned Governments, animated bythe same spirit as inspired the declarationsigned on June 16, by the five inviting creditorpowers, are agreed and recommend to the con-ference that a committee consisting of one rep-resentative of each of the Governments con-cerned shall be set up to consider the group ofquestions known as " non-German repara-tions" and cognate questions, viewing themwithin the framework of the general settlement.

Are of opinion that, in order to permit thework of the said committee to proceed undis-turbed, without prejudice to any question ofprinciple, or to the solutions which may ulti-mately be reached, the execution of the pay-ments due in respect of the above-mentionedquestions should be reserved until December 15next, failing a settlement before that date.

Signed at Lausanne July 7, 1932, for theGovernments of:

Australia: Granville Ryrie.Belgium: Paul Hymans.Bulgaria: M. Mouchanoff.Canada: Thomas A. Stone.Czechoslovakia: Stefan Osusky.France: Charles Rist.Greece: .Hungary: L. Gajzago.Italy: Antonio Mosconi.Japan: Shigeru Yoshida.New Zealand: T. M. Wilford.Portugal: Tomaz Fernandes.Rumania: Savel Radulesco.South Africa: C. T. te Water.The United Kingdom: Mr. Neville Cham-

berlain.Yugoslavia: Constantin Fotitch.India: Mr. Neville Chamberlain.



IVRESOLUTION RELATING TO CENTRAL AND

EASTERN EUROPE

In order to achieve the financial and economicreconstruction of central and eastern Europe,the conference decides to appoint a committeewhich will be intrusted with the duty of sub-mitting to the Commission of Enquiry forEuropean Union, at its next session, proposalsas to measures required for the restoration ofthe countries of central and eastern Europe, andin particular:

(a) Measures to overcome the present trans-fer difficulties of those countries and to makepossible the progressive suppression, subject tothe necessary safeguards, of the existing systemsof exchange control.

(b) Measures to revive the activity of tradeboth among those countries themselves and be-tween them and other States, and to overcomethe difficulties caused to the agricultural coun-tries of central and eastern Europe by the lowprice of cereals, it being understood that therights of "third countries" remain reserved.

Accordingly the conference invites the Gov-ernments of Germany, Austria, Belgium, Bul-garia, France, the United Kingdom, Greece,Hungary, Italy, Holland, Poland, Rumania,Switzerland, Czechoslovakia, and Yugoslaviaeach to appoint no more than two representa-tives on the committee referred to above.

J. RAMSAY MACDONALD,President of the Conference.

M. P. A. HANKEY,Secretary- General.

RESOLUTION RELATING TO A WORLD ECONOMICAND FINANCIAL CONFERENCE

The conference, apart from the questions al-ready dealt with, has further undertaken todecide upon "the measures necessary to solvethe other economic and financial difficultieswhich are responsible for, and may prolong, thepresent world crisis."

The main questions of this order which de-mand examination are as follows:

(a) Financial questions: Monetary and creditpolicy, exchange difficulties, the level of prices,the movement of capital.

(6) Economic questions: Improved condi-tions of production and trade interchanges,with particular attention to tariff policy; pro-hibitions and restrictions of importation andexportation, quotas and other barriers to trade;producers' agreements.

The conference emphasizes in particular thenecessity of restoring the currencies to ahealthy basis and of thereby making it possibleto abolish measures of exchange control and toremove transfer difficulties. Further, the con-ference is impressed with the vital need of facili-tating the revival of international trade.

To achieve the above purposes—The conference decides to invite the League

of Nations to convoke at a convenient date andat a place to be fixed (not necessarily Geneva)a conference on monetary and economic ques-tions.

The conference decides to intrust the prelim-inary examination of these complex questions,which are closely interdependent, to an author-itative committee of experts.

The conference, therefore, invites the Gov-ernments of Germany, Belgium, France, theUnited Kingdom, Italy, and Japan each toappoint as members of the committee twoexperts, one qualified to deal with economicquestions, the other qualified to deal withfinancial questions. The committee woulddivide itself into twosubcommittees accordingto the two branches of the subject. The twosubcommittees would naturally have discretionto meet in joint session whenever necessary,with the object of insuring the necessary coor-dination in their labors.

The confeiaence further resolves to invitethe Government of the United States ofAmerica to be represented on the committee onthe same basis as the Governments of the Statesmentioned above.

Finally, the conference invites the Council ofthe League of Nations to nominate three per-sons qualified by their financial competence,and three persons qualified by their economiccompetence. It would be desirable that thesepersons should be nationals of countries otherthan those mentioned above. They might seekassistance from the directors of the economicand financial.sections of the secretariat of theLeague.

The conference similarly seeks the collabora-tion of the Bank for International Settlementsand decides to invite the latter to nominate twopersons to participate in the work of the sub-committee on financial questions.

J. RAMSAY MACDONALD,President of the Conference.

M. P. A. HANKEY,Secretary- General.

LAUSANNE, July 9, 1982.



Further documents relating to the settlementreached at the Lausanne Conference June 16-July 9, 1932, are as follows.

No. 1 .—Proces-verbal

The Lausanne Agreement will not come intofinal effect until after ratification as providedfor in the agreement. So far as the creditorGovernments on whose behalf this proces-ver-bal is initialed are concerned, ratification willnot be effected until a satisfactory settlementhas been reached between them and their owncreditors. It will be open to them to explainthe position to their respective parliaments,but no specific reference to it will appear in thetext of the agreement with Germany.

Subsequently, if a satisfactory settlementabout their own debts is reached, the aforesaidcreditor Governments will ratify and the agree-ment with Germany will come into full effect.But if no such settlement can be obtained, theagreement with Germany will not be ratified; anew situation will have arisen and the Govern-ments interested will have to consult togetheras to what should be done. In that event thelegal position, as between all the Governments,would revert to that which existed before theHoover moratorium. The German Govern-ment will be notified of this arrangement.

On behalf of Belgium, J. R.; on behalf ofGreat Britain, N. C ; on behalf of France, E.H.; on behalf of Italy, A. M.

July 2, 1932.

No. 2.—Note to the Chancellor of the GermanReich

LAUSANNE, July 9, 1932.YOUR EXCELLENCY: We have the honor and

we feel it our duty to transmit to you herewithfor your information copy of a proces-verbalsetting out an arrangement which we arrived aton July 2.

We have the honor, etc.:For Belgium, Paul Hymans;^for Great

Britain, John Simon; for France,. EdouardHerriot; for Italy, Antonio Mosconi.

No. 3.—German Chancellor to Sir John Simon[Translation]

GERMAN DELEGATION,LAUSANNE, July 9, 1932.

YOUR EXCELLENCY: I have the honor to ac-knowledge receipt of the communication signed

by yourself and by the heads of the Belgian,French, and Italian delegations, which youcaused to be conveyed to me to-day after thesignature of the Lausanne Agreement.

The arrangement of the four delegations,dated the 2d instant, which accompanied yourcommunication, relates to the case of aneventual nonratification of the Lausanne Agree-ment, and consequently refers to the samequestion which also formed the subject of dis-cussion on the 8th instant between the headsof the delegations of the six inviting powers.

In accordance with the understanding arrivedat at this discussion, I addressed on the sameevening to the president at the public session ofthe conference a question concerning the pointat issue, which was immediately answered byhim in the name of the inviting creditor powers.

In these circumstances I consider myselfjustified in proceeding on the assumption thatthe matter has been authoritatively explained,in so far as Germany is concerned, by myquestion to the president of the conference andby his reply.

I have, etc.,VON PAPEN.

No. 4.—Extract from the fourth plenary meetingof the Lausanne Conference, held on July 8,referred to in No. 3.

Herr von Papen (addressing the president ofthe conference, Mr. Ramsay MacDonald; trans-lation from the French):

I should like to ask one question concerningthe second paragraph of article 1 in annex 2.

In the event, which I recognize to be im-probable, of one of the six powers concernednot ratifying the agreement, what procedure isproposed to be followed? I imagine that whatis essential is that the Governments concernedshould get together as soon as possible to con-sider the situation that has arisen, but I shouldlike to have an assurance that that is the inten-tion of the conference.

President: I am happy to be able to put thison record. It would be most inadvisable andvery difficult to embody it in the annex, butthe declaration I am now making on behalf ofthe inviting powers will, I think, be sufficient.It is that in the event of any inability to fulfillthis agreement and its annexes, a further con-ference will be held.



No. 5.—Letters from the Chancellor of the Ex-chequer to the French and Italian Ministersof Finance regarding French and Italiandebts to the United Kingdom

LAUSANNE, July 8, 1932.DEAR MONSIEUR GERMAIN-MARTIN (SIG-

NOR MOSCONI): His Majesty's Government inthe United Kingdom would have been veryglad if it had been possible for them to cancelthe war debt of France (Italy) as part of anall-round cancellation of war debts and repara-tions. In the actual circumstances they regretthat they can not enter into any definite com-mitments modifying the existing war-debtfunding agreement. They agree, however,that the suspension provided for by the declara-tion of June 16 should apply to the annuitiesdue under the war-debt funding agreement,and under annex 1 of The Hague Agreementof August 31, 1929, until the coming intoforce of the Lausanne Agreement or until ithas been decided not to ratify that agreement.

In the event of nonratification of the Lau-sanne Agreement, the legal position between allthe Governments concerned would revert tothat which existed under The Hague Agree-ment of January 20, 1930, and the war-debtfunding agreements.

In that case the British and French (Italian)Governments would have to examine togetherthe de facto situation which would be created.

Believe me,Yours sincerely,

N. CHAMBERLAIN.

His Excellency M. GERMAIN-MARTIN.His Excellency Dr. ANTONIO MOSCONI.

No. 6.—Declaration made by the foreign secre-tary at the plenary meeting of the LausanneConference on July 9 in regard to war debts ofinvited powers. Declarations in identicalterms were also made on behalf of the Frenchand Italian Governments

I desire to make the following statement onbehalf of His Majesty's Government in theUnited Kingdom, in order to make clear theposition as regards the war debts due to GreatBritain by invited pow ers:

"The effect of the declaration of the con-ference signed on June 16, 1932, is extended tocover the suspension of the payments due inrespect of such war debts until the Lausanne

Agreement with Germany, which we are signingto-day, has come into force, or until a decisionhas been notified that it will not be possible toratify that agreement."

Declaration issued by His Majesty1 s Governmentin the United Kingdom and the French Govern-ment on July 13, 1932, as to methods for pro-moting future European cooperation, whichother European Governments are invited toadopt

In the declaration which forms part of thefinal act of the Lausanne Conference, the signa-tory powers express the hope that the taskthere accomplished will be followed by freshachievements. They affirm that further suc-cess will be more readily won if nations willrally to a new effort in the cause of peace, whichcan only be complete if it is applied both in theeconomic and political sphere. In the samedocument the signatory powers declare theirintention to make every, effort to resolve theproblems which exist at the present moment, ormay arise subsequently, in the spirit which hasinspired the Lausanne Agreement. In thatspirit His Majesty's Government in the UnitedKingdom and the French Government decidedthemselves to give the lead in making an im-mediate and mutual contribution to that end onthe following lines:

1. In accordance with the spirit of thecovenant of the League of Nations, they intendto exchange views with one another with com-plete candor concerning, and to keep eachother mutually informed of, any questionscoming to their notice similar in origin to thatnow so happily settled at Lausanne, which mayaffect the European regime. It is their hopethat other Governments will join them inadopting this procedure.

2. They intend to work together and withthe other delegations at Geneva to find asolution of the disarmament question whichwill be beneficial and equitable for all thepowers concerned.

3. They will cooperate with each other andother interested Governments in the carefuland practical preparation of the world economicconference.

4. Pending the negotiation at a later dateof a new commercial treaty between their twocountries, they will avoid any action of thenature of discrimination by the one countryagainst the interests of the other.



FINANCIAL STATISTICS FOR FOREIGN COUNTRIESGOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS


End of month Total (48countries)

1931—MarchAprilMayJuneJulyAugustSeptember..OctoberNovember..December..

1932—JanuaryFebruary...MarchAprilMayJuneJuly

11,07911,11511,22511, 27211,21811,29411, 27311,12711, 22411, 263

11,31411,39111,46611,47711,37811,311

UnitedStates

4,3434,3734,4454,5934,5874,6324,3643,9054,0314,051

4,0093,9473,9863,9563,7173, 460

P 3,520

Canada

9699

10287878983868278

807877777878

Europe

Total (27

5,3885,3955,4285,3515,3535,4155,6896,0666,1136,189

6,3006,444

6,5256,658

J> 6,834

200201201199214221346357356354

352351349351353357365

Czecho- Denmark England France Germany

699712735793643649656660587588

588

663670

2,2002,1802,1812,2122,2902,2962,3262,5342,6592,699

2,8082,9423,0123,0523,1153,218

* 3,221

553564

325325310273239234

226221209205206198

»183

End of month

Europe—Continued

Greece Hungary Italy Nether-lands Norway Poland Portu-

galRuma-

nia Spain Sweden Switzer-land u. s. s.

R.

Yugo-slavia

6 othercoun-tries

1931—MarchAprilMay.JuneJulyAugustSeptember..OctoberNovember..December..

1932—JanuaryFebruary...MarchAprilMayJuneJuly

279279280282283283286293296296

296296296296297

179181181200236260282336362357

351353354364384394408

467467468468439439439434434434

434434434434435435

124124124162225229328422425453

472482471471493503509

259259262262267280293309315328

329329330331335349357

18181818182121252626

2626262730

Latin America

End of month Total(10

coun-tries)

Argen-tina Chile

Co-lom-bia

Peru Uru-guay

5 othercoun-tries

Asia and Oceania

Total(6

coun-tries)

Aus-tra-lia

77747475665252535152

515252525252

India

135141147151158162162162162162

162162162162162162

Japan

415419422425412406408342271234

215215214214214214

Java

48464646444451535345

454542414242

NewZea-land

34343434343434343332

323231303030

Tur-key

466669

Africa

Alge- Egypt SouthAfrica

1931—MarchAprilMayJuneJulyAugustSeptember.OctoberNovember.December..

1932—JanuaryFebruary. _MarchAprilMayJune

483475465451416400370366361352

347343342340

* 343'345

378370362350322309281270265253

252249249249249

58585858575756535353

525252515150

99

1010

v 10

709714724730714698706644570525

510511507505506508

20212121212121212121

2123313233

' 33

31313231333132303739

403731343538

Preliminary.

Figures for 33 countries are as of final day of month; for the other 15 countries—including England, France, and Netherlands—they are as of lastreport date of month. See BULLETIN for May, 1932, p. 315. Since the note in the BULLETIN for May, 1932, was prepared, figures for the BanqueCentrale de la R§publique de Turquie have been added to the table. The figures reported by this bank relate to the last Thursday of the month.

The 6 European countries and 5 Latin American countries for which figures are not shown separately are Albania, Danzig, Estonia, Finland,Latvia, and Lithuania; Bolivia, Brazil, Ecuador, Guatemala, and Mexico. None of these countries has had gold reserves during this period inexcess of $10,000,000.

For back figures—and for additional details relating to this table—see BULLETIN for May, 1932.



GOLD PRODUCTION[In thousands of dollars]

Month

Esti-matedworld

produc-t ion '

Production reported monthly-

Total '

Africa

SouthAfrica Rhodesia West

AfricaBelgianCongo '

Canada• Mexico ' Australia Japan India

1930—Total.

1931—January...February. .MarchAprilMayJuneJulyAugustSeptember.October . . .November.December.

T o t a l . . . .

1932—January...February. .MarchAprilMay

416,752 322, 751 221,528 11,476 3,618 43,454 13,813 9,553 7,531

36, 51734, 50236,04136,23036,63936, 59136, 53737,14837, 23038,14737,10837, 250

28,30626,29127,83028,01928,42828,38028, 32628,93729, 01929,93628,89729, 039

19,15117, 42718,79118,19418,90118,59418,95918,85918,98119, 52518,67318,809

960898886917918926947918905936941

1,041

442438453446451447451462486473477

387333349351334340342353397437408417

4,1834,0334,2184,5914,4604,7254,7114,7185,0054,9334,9064,974

1,2811,011988

1,3291,2081,103814

1,2281,0741,041914877

634869863936919

1,092933

1,229916

1,2401,3211,181

'621'702'689694716663668654692679667664

439,941 341,410 224,863 11,193 5,524 4,448 55,458 12,866 12,134 ' 8,109

37, 71836, 799

P 38, 551P 38,026p 38,844

29, 50728, 58830,34029,815

P 30,633

19,58718,93519,87719, 59319,970

921956

976

460453484465

P482

405381

P 419P 388*>388

4,8344,6705,2855,0935,551

1,106948862

P 862»862

1,0321,0631,1311,1761,176

628657741671653

6,785

648580594561521490500ol6562673590579

6,815

534525545590567

Preliminary. ' Revised.NOTE.—The figure for total world production in 1930 is that published in the annual report of the Director of the Mint for 1931. The difference

between this figure and the total production reported monthly in 1930 is $94,001,000, or $7,833,000 on a monthly average basis. In order to derivemonthly figures for estimated world production, for 1931-32 this average difference, of which about half represents United States production, isincreased by 4.8 per cent—the ratio of increase of United States production in 1931—and added to the production actually reported each month.

The figure 4.8 per cent for increase of United States production in 1931 is final and replaces the preliminary figure of 3.5 per cent employed inpreceding issues of tho BULLETIN.

The figures reported monthly are not in every instance complete for the area indicated. Those for West Africa represent the output of theGold Coast and Sierra Leone; those for Australia, total output with the exception of Tasmania and Northern Territory; those for Japan, the outputof the leading mines; and those for India, the output of the Mysore State.

For annual figures of world production of gold extending back to 1873 see the annual report of the Director of the Mint for 1931, p. 241.

GOLD MOVEMENTS[In thousands of dollars]

Month

1930—Total

1931—JanuaryFebruary..MarchApril.MayJuneJulyAugustSeptember..OctoberNovember..December..

Total

1932—JanuaryFebruary.. .MarchAprilMayJune.July p

United States

Totalnetim-

ports

280,087

34,37216,14225, 64549, 51649, 63063,84719, 50357,50020, 561

-337,68589,43656,858

145, 325

-72,950-90 , 567-24 , 671-30 , 239

-195,514-207, 722

-4,445

Net imports from—

Eng-land

-275

9

- 41,501

23685333

4,249

6,797

-3,199-235- 2 3

-1,922-7,047-1,910

1,480

France

- 7 3 , 675

31

5019,161

5218

- 1 6-24,087

-324,500- 1 0

-15,150

-344, 514

-83,783- 9 8 , 203-37 , 532-24 , 527- 6 3 , 216

-111,411-21,513

Ger-many

174

161

- 2 025,990

11,000

-831-115- 6 2

36,026

- 7 1-495

2- 3 , 286- 9 , 710

-116

Bel-gium

6

1

216

-9,678- 5 7

-5,861

-15,583

-12,553-17,859-6,341

-669-19,930-26 , 250

Nether-lands

16

-4,172-35,904

-394-9,857

-50 , 327

-6,257-8,672

-18,707-58,473-23,168

Switzer-land

- 1 7

-349-17,617

-515-1,270

-19,768

-1,759-254

- 6-115

- 5 3 , 554-62 , 603

Can-ada

6,872

22, 5561,272

9241,1051,052

20, 7254,8712,2088,8375,6667,4084,513

81,136

'4,1548,4067,2167,2674,6993,7494,233

Mexico

20,390

536303

4,0321,563

774438466

8,8024,260

-1,239989

1,344

22,267

1,103950

2,9973,3291,510

816709

Argen-tina

20,222

5,4419,289

11,60114, 78240,0294,9238,3055,383

25, 77015,474

267

141,263

9,1101,1572,683

Colom-bia

9,097

3,022116

2,99686

3,35915587

1423,095

16

2,042

15,116

2,948737

BritishIndia

4

4,8953,165

8,064

4,6772,575

70

175

49

Chinaand

HongKong

22,211

8012,7391,5977,796

9606,3611,5441,0463,5965,5331,644

623

34, 240

167819

2,9482,4023,7914, 8664,436

Japan

156,609

7481

1,5862,741

847399

1,24625,000

22, 50175,93268,285

199,286

9,96919,441

2,0132,4415,1724,184

Allothercoun-tries

i 118,440

1,2642,4122,8602,2052,6244,8522,9802,4353,5842,209

9414,837

31, 322

2,5421,7953,3133,9673,8003,1331,977

i $87,776,000 imported from Brazil. » Revised. p Preliminary.



GOLD MOVEMENTS—Continued[In thousands of dollars]

Month

Great Britain

Totalnet im-ports

Net imports from—

UnitedStates

France Ger-many

Bel-gium

Nether-lands

Switzer-land

SouthAmerica

BritishIndia

StraitsSettle-ments

Austra-lia

SouthAfrica,

Rhodesia,West Af-

rica

Allothercoun-tries

1930—Total

1931—JanuaryFebruaryMarchAprilMay...JuneJulyAugustSeptember ».October »November ».December ».

Total*

1932—JanuaryFebruaryMarchAprilMayJuneJuly P _.

23,658 283 -268,831 -78,862 -9,090 -981 -23,190 57,896 -8,177 1,526 116,415 213, 774 1 22,893

-43,4702,4436,45224,08419,12254,300

-130,808-24,150-9, 25113,040

-44, 977-15,602

-1,50611

-827970

-4,144-7,086

-72, 616-18,178- 7 , 793-344-296-232

-110,144-13,333

-774-6, S00-61,412-24,939

-1,483-1,772-1,047

-92-420

37, 5141,765

7

-119- 2

-515

-2,661- 7 , 796-6,317

-19-10,751-9,145

-35- 7-66-155

-276-141865146-82

-50,133-24, 373-18,419- 8 , 591-12,370- 4 , 290

-992-153-194-126-133

-3 , 338-1,658-13,218-10,168-2,458-10,003-18,564

7,8238,485

112340

2,753389

6,028602695

1,003692

198529

-249305

-258-25

3,132984823

7,46223, 93019, 527

1,421620879967

1,0031,2051,7031,504650400214417

380375365

3,407398511

10,09615, 549

12419

1,10764

20,37317,48921,38223,09016,18521,02421,04217,86119, 35921,01715,42619, 499

4,3632,858-704

-3, 528-256

- 2 , 647-382-599-494-2561,649442

-148,817 -12,582 -316,861 33, 764 -36, 952 -118,319 -61,005 28,922 56,358 10, 983 32,683 233, 747 446

-7,320-6,182- 2 , 69126,14816, 97335, 01920,626

-4,1292,256-1191,2077,54115,897-1,660

-64, 955-52, 712-40,858-17,795-10,843-9, 035-10,344

-58371

-1814

-134-756-53-53

- 2 , 571-2,767- 4 , 443

-3 , 584- 7 , 537-3 , 480-1,955-11,310-9,394-7,047

-247-3, 723-7,382

-16-214

-1,081-716

1052,2261,002

406

"385'

45, 98630, 66124, 34017, 39311, 56512,81212, 630

746781602899803772

1,500

1,555371

1,7501,083

915794

8,706

17,06220,88420,61624,89318,96526, 24618,877

3521,426

887420

1,734760

2,730

Month

France

Totalnet

imports

Net imports from—

UnitedStates

Eng-land

Ger- Neth-er-

lands

Swit-zer-land

Allothercoun-tries

Germany *

Totalnet

imports

Net imports from—

UnitedStates

Eng-land France

Neth-er-

lands

Swit-zer-land

U.S.S.R.

Allothercoun-tries

1930—Total. 460,268 90,938 274, 514 65, 352 25,183 - 1 , 1 2 7 5,403 -14 ,006 263 67,948 -84 ,496 -11 ,908 1,325 12 12,849

1931—January. . .February..MarchAprilMayJuneJulyAugustSeptember.

1 OctoberNovember.December-

Total.- . .

1932—January...February..MarchAprilMayJune

67,81936,20510, 558

2, 736-12 ,090

- 9 , 558149,15072,952

418273, 734122, 372

13,881.

-12 ,749- 6 , 326

209243, 95699,8763,164

728,176

74,007184,171147,60460,34017, 735168,000

328,130

65,06282, 58071, 27938,08017,174

152, 072

67,03135, 9929,6432,218257316

29, 52078,366

90221, 73840, 44726,132

-1

4,11489, 786

6,060911

-15-38— 18-13-20-21-19-29-10

-3, 55322, 741-23f

-1

i

—7-3

-8, 2629

-5, 996-1,818-153

-42, 572-22,386

805251934538425621

3 29,87611

1,13"5,6851,7897,203

11,96612,09810, 59811,3836,371

-205, 543-6, 243

93-"-16,94'-31, 473-41, 968

& "

-1

12112

-25, 927-10,963

681187

312, 561 100,050 18, 775-81, 207 49,867 -247,950 -36,160

10, 73590,94~49,02823,88814,2327,541

- 4 6- 4

13,889- 1 5

2,5S25,737

6,7559,601

12, 5612,0192,0064,601

-9,899-1,592

1"428

- 1 ,- 8 , 234

1,4012,639

830- 4 , 0 6 1-17,141

6,281

328-5 ,262

' - 1 3 , 6 4 7- 8 , 3 1 9

3,133- 7 , 1 3 9

29366

1,3212,0081, 24~

563248

-40 ,029- 1 , 9 4 9

1125471120!49-

542

- 3 5 , 221 -102,019

71- 2

- 1 4

17263

8954145

-97 ,63054

2163

- 5 , 9511856

75163177309424

-24,159151548

- 5 , 558-10,965-16,455

150

22794742

- 6 , 1 1 318

- 2 3-11,859-20, 620-25 , 594

103

31 10, 3389,8267,718

10, 3275,1695,1545,218

5,183

3016

46995

431*-16,839

1,22780

- 8 078

- 417

-55 ,142 -63 ,866 58, 932 -14 ,475

71-16 ,224

17- 5 , 8 0 0

27849

170- 8 , 3 2 8- 7 , 539- 7 , 6 9 1

4-5,647-2,776

42672

2475,1525,198

10. 35:i, 399

- 5 333

180- 6 6

2,809

1 $29,229,000 imported by Great Britain from Spain.2 $17,555,000 exported by Germany to Belgium.3 $29,233,000 imported by France from Spain.* $21,292,000 exported by France to Belgium.p Preliminary figures. • Corrected.

* With this issue of the BULLETIN final figures for individual countries in 1932 replace the preliminary figures previously given.



GOLD MOVEMENTS—Continued[In thousands of dollars]

Month

Netherlands

Totalnet

imports

Net imports from—

UnitedStates England France Ger-

many

Allothercoun-tries

Switzerland

Totalnet

imports

Net imports from—

UnitedStates England France Ger-

manySouthAfrica

Allothercoun-tries

1930—Total

1931—JanuaryFebruary..MarchAprilMayJuneJulyAugustSeptember.OctoberNovember.December..

-7,724 1,018 -20,528

249-118-156-433-519

24, 3849,39760, 07619, 02030, 59836, 55119, 567

16, 41321, 551

1,449

27619

-14-65-145-21

9,82060, 72215, 38714, 7817,9828,849

2630312523233739

-86-17,572-1,113- 2 , 325

11,932

-43-164-142-392-382

24,176-229-556-11317,4554,71711, 672

-158 22,204 24,205 1,911

6-29- 2-13207

-232-128

2 3,831-479

<3,413-78

671-54-111-10-18

17, 4753, 59718, 09625, 50594,33943, 57219, 687

23

32,9193,224

254

972201143100123

3,2691,072186

1,7225,3469,80518. 364

-16

-42-32- 6

8,2202,300

6623

3,3984,519886

-1,643

-70-58-39-11

6,110-36501

8,27025, 604-75

33211, 04416, 57744,196

408203

-2,270= = = = =

-223-185-153-38-123-146-69

i 6, 751> 7,181

2091155

Total

1932—JanuaryFebruaryMarch.,AprilMay.. .June

198, 619

7,1302,608

-1,8867,737

58, 29254,107

39, 413 117, 591 - 2 1 , 024 56,059 6,580 222, 751 36, 422 41,301 19, 317 39, 684 72, 760 13,267

7,7478,8106,3422,79955,31747, 324

3,1005, 4463,870867

5,4708,397

-3, 521-9,900-11,028

-771-3, 258-1,786

-30432034

8,4457,4649,763

109- 2 , 069-1,105

* - 3 , 6025-6, 703s-9,590

5,65317,6584,6982,538

46,05180,872

2,0671,411

8265

41,03470, 247

1,3005,7255,733

116116

1,734

1,9725,423

- 2 , 069- 9 5

1,7183,554

105,731

8S6-165- 5 2- 8 5

304-630

65« 2, 616« 3,235« 5,422

Month

British India*

Total netimports

Net imports from—

UnitedStates England

Australiaand NewZealand

Iraq SouthAfrica

All othercountries

Gold pro-duction

in India7

Increasein Gov-ernmentreservesin India

Increasein privateholdingsin India8

1930—Total. 57,672 8,681 8,053 2,402 26,513 12,023 6,806 200 64,278

1931—JanuaryFebrua ry . .MarchAprilMayJuneJulyAugustSeptember-OctoberNovember..December..

880943600696

- 1 , 752-803-270

175-26,058-24 , 217- 4 5 , 596

- 4

- 1 0-2,196-8,273-3,307-5,294

—1,024323

- 2 6102295

-2,254-1,539

-979-291

-10,179-17,610-39,539

94211418

9917040422499323

13811314411816714679202460279372152

24749113742425

70738479

260184294107111165253223471

»-8,388io-3,673

-921

649582596563523491502517564675592581

19

6,9426,1685,8663,3977,3623,760

21-353

3590

3621,453

-5,403-5,005—4,647-4,658—7,663-3,513

718—25,030-23,984-45,015

Total. - 9 5 , 688 -19,084 -72,721 2,835 ,825 -10,914 6,835 33, 532 -122,385

1932—January...February.MarchApril.MayJune

-24,029—17,672- 1 8 , 670-11,812-8,935

' - 1 2 , 3 0 1

-2,863-363- 9 0

-209

-21,419-17,353-18,788-11,229-9,007

9713

22528

189-471

59

536527547592569

18- 2- 7

1 $6,733,000 imported by Switzerland from Australia.«$4,020,000 imported by Netherlands from Dutch East Indies.»$7,293,000 imported by Switzerland from Norway.<$3,824,000 imported by Netherlands from British India.» Exported from Netherlands: To Poland—April, $1,791,000; May, $3,415,000; June, $3,349,000. To Switzerland—April, $2,325,000; May,

$3,466,000; June, $5,849,000.«Imports by Switzerland from Netherlands: April, $2,308,000; May, $2,949,000; June, $5,632,000.i Reported monthly production of the Mysore State plus $82,000 representing the average monthly production of the rest of India in 1930.8 Figures derived from preceding columns. Net imports plus production minus increase in Government reserves in India.9 $7,575,000 was exported from India to Netherlands.10 $1,891,000 was exported from India to Netherlands; $2,173,000 to France.•Beginning with September, 1931, figures for net imports from individual countries are preliminary and subject to revision. Figures for total

net imports, gold production, and increase in Government and private holdings are final unless otherwise indicated.» Preliminary.



GOVERNMENT NOTE ISSUES AND RESERVES[Figures are for last report date of month]

Argentine Conversion Office (millions ofgold pesos):

GoldNotes issued *

Irish Currency Commission (thousands ofpounds sterling):

Legal tender note fund -British legal tender and bank

balancesBritish securities.Notes issued

Consolidated bank notes 2—IssuedDeemed such under sec. 60 (4) of

currency act, 1927.

1932

June

257572

36

6,936

6,972

4,492

1,480

May

*257*576

79

6,936

7,016

4,443

1,503

Apr.

257544

112

7,155

7,267

4,406

1,560

1931

June

362543

93

6,934

7,027

4,191

1,762

Canadian Minister of Finance (millionsof Canadian dollars):

Gold reserve against Dominion notes..Advances to banks under finance ac t -Dominion no te s -

IssuedOutside chartered bank holdings-

Indian Government (millions of rupees):Gold standard reserve-

GoldForeign exchange

Paper currency reserve-GoldSilver coin and bullionOther assets _

Notes issued

1932

June

6540

16829

336198

1081,119

4821,709

May

6430

15528

336197

1071,105

4731,685

Apr.

6427

15329

388145

551,105

5231,683

1931

June

13

14528

241292

1711,300

541,525

1 Includes a small quantity of subsidiary coin, amounting on Mar. 31,1932, to 15,000,000 pesos.2 The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended June 25, May 28, and Apr. 2, 1932, and June 27,

1931. The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates.v Preliminary,c Corrected.

BANK FOR INTERNATIONAL SETTLEMENTS[In thousands of dollars converted from Swiss francs at par: 1 Swiss franc=$0.1930]

Resources

Cash on hand and on current account withbanks _ _

Demand funds at interestRediscountable bills and acceptances (at

cost"):Commercial bills and bankers' accept-

ancesTreasury bills

Total

Time funds at interest-Not exceeding 3 monthsBetween 3 and 6 months

Total

Sundry bills and investments:Maturing within 3 months—

Treasury bills._.Sundry investments

Between 3 and 6 monthsOver 6 months

TotalOther resources

Total resources

1932

June 30

3,4619,966

87, 55934, 239

121, 797

47, 900

47, 900

8,5686,9369,1904,938

29, 6321,460

214, 216

May 31

2,52513,174

90, 54335, 247

125, 790

51,923

51, 923

17,93311, 5264,585

373

34, 4172,171

230,000

1931

June 30

2,15332, 518

84, 56256, 567

141,129

114, 6444,757

119,401

i 46,462

46,4621,958

343, 621

Liabilities

Short-term deposits:Central banks for own account-

DemandT i m e -

Not exceeding 3 monthsBetween 3 and 6 months

Total

Central banks for account of others—

T i m e -Not exceeding 3 monthsBetween 3 and 6 months

Total

Other depositors-Demand

Long-term deposits:Annuity trust accountGerman Government depositFrench Government guaranty fund___

TotalCapital paid inReserves:

Legal reserve fundDividend reserve fundGeneral reserve fund

Profits allocated for distribution on July 1,1932:

Dividend to shareholders (6 per cent)..Participation of long-term depositors

per article 53 (e) of statutes -Other liabilities

Total liabilities

1932

June 30

76, 495

40, 586

117, 081

5,863

5,863

1,164

29, 67714,83913, 249

57, 76524,125

254519

1,038

1,244

6164,546

214, 216

May 31

60, 680

67,886

128, 567

10, 305

10, 305

1,572

29,67714,83913,249

57, 76524,125

254519

1,038

1,244

6163,994

230,000

1931

June 30

75, 066

106, 517792

182, 375

32, 617

39, 2366,033

77, 886

219

29, 73514, 86713, 279

57, 88120, 941

108211422

995

4222,161

343, 621

i Composed of $40,763,000 of investments not exceeding 1 year and $5,699,000 exceeding 1 year.

132689—32 4



CENTRAL BANKS[For explanation of these tables see BULLETIN for February, 1931, pp. 81-83]

Bank of EnglandGold (in

issuedepart-ment) 1

Resources of banking department

Cash reserves

Coin Notes

Discountsand

advancesSecuri-

ties

Notecircula-

tion

Liabilities of banking department

Deposits

Bankers'

54.861.655.853.662.663.559.8

126.474.367.954.658.377.586.688.2

Public

17.425.215.226.330.117.327.0

7.715.314.127.223.423.618.011.2

Other

33.833.533.748.752.652.638.140.338.232.234.435.332.934.734.6

Otherliabili-

ties

Millions of pounds sterling:1931—May 27

June24___July 29Aug. 26Sept. 30 _ - .Oct. 28Nov. 25Dec. 3O.__

1932—Jan. 27_Feb. 24..Mar. 30Apr. 27May 25June 29Julv 27

151.0162.9132.0133.3134.8135.7120.7120.7120.8120.8120.8120.8125.0136.1137.7

1.11.11.31.31.31.31.0

56.270.132.758.052.654.641.331.649.949.435.343.045.848.143.4

9.79.3

14.810.512.727.312.911.511.711.512.214.915.3

59.857.579.278.294.984.687.8

133.082.571.086.879.493.293.592.5

354.9352.8359.4350.3357.2356.0354.4364.2345.9346.4360.5352.8354.2363.1369.3

17.817.918.118.219.317.717.818.018.118.218.217.717.818.018.1

Bank of France

Resources Liabilities

Gold Foreignexchange

26,16026, 20926, 24227,61125,19427, 60024, 27321,11118, 80515,12712, 63211,8009,0016,3325,481

Domesticbills

6,1905,5764,5645,8205,8808,8097,7667,3896,5555, 5444,8204,6904,1603,9293,922

Securityloans

2,8062,7792,8602,7292,7542,7122,7312,7302,7442,7072,7162,7352,7002,7152,747

Negotia-ble

securi-ties 2

5,0825,0825,0655,0655,0655,0655,0657,1576,8996,8826,8816,8816,8816,6266,620

Otherassets

Notecircula-

tion

Deposits

Govern-ment Other

Otherliabili-

ties

Millions of francs:1931—May 29..

June 26..Ju l y31 . .Aug. 28..Sept. 25.Oct. 30_-Nov. 27..Dec. 30__

1932—Jan. 29. _Feb. 26__Mar. 25..Apr. 29..May 27__June 24..July 29 p.

55,63456, 42658, 40758,56359,34664, 64867,844

71,62575, 05976,83277, 86279,47082,10082,167

7,3166,8078,9588,1938,0998,4288,6478,5458,278

8,3718,6978,6848,634(3)

78,18576,92779,86278, 63578,17383,63982, 54385,72584,72383,18981,78282, 77481, 41880,66782,117

9,9408,5139,3039,4707,3578,2277,1705,8984,7223,6373,5263,1113,4322,8813,740

12,66915,18714,73617, 64918, 54222,95424,17122,18323,55224,89924,96224, 82724,12824,62122, 033

2,3942,2502,1952,2272,2662,4412,4421,9891,9101,9251,9801,9531,9172,167

(3)

Reichsbank

Resources Liabilities

Reserves

Gold

Millions of reichsmarks:1931—May 30

June 30.July 31Aug. 31Sept. 30Oct. 31Nov. 30Dec. 31

1932—Jan. 30_Feb. 29._Mar. 31 _Apr. 30May 31June 30July 30 P

Foreignexchange

2,3901,4211,3631,3661,3011,1451,005

984948928879859863832766

186.300246356139131170172145149142131129130128

Treasurybills

2574

24938

124

Otherbills (andchecks)

1,7912,5793,2733,1013,5454,0103,9014,1443,6323,3243,2583,146

3,1003,108

Securityloans

167355347208301240254245158303290282257261224

Securities

103103103103103103103161161162362362363364

Otherassets

Notecircula-

tion

721936958972

1,016

1,0651,0981,1001,044977

1,0321,038975

4,2994,2954,4544,8344,6094,7464,6414,7764,4074,2684,2314,1283,9613,9843,967

Deposits

353398834509613518506755394423578405431473380

Otherliabili-

ties

7311,0741,2511,2511,3061,3261,3231,3381,3731,3181,2261,2491,2621,2711,267

i In addition the issue department holds Government and other securities and silver coin as cover for the fiduciary issue, which is fixed bylaw at £260,000,000. Since Aug. 1,1931, however, an increase of £15,000,000 in the fiduciary issue (and securities held as cover) has been authorizedby the British Treasury under section 8 of the Currency and Bank Notes Act, 1928; the maximum period for which such authorization may begranted is two years.

* Issued by the independent office for retirement of public debt (Caisse Autonome d'Amortissement).* Not yet available.p Preliminary figures.



CENTRAL BANKS—Continued[Figures are for last report date of month]

Central bank1932

June May Apr,

1931

JuneCentral bank

1932

June I May I Apr.

1931

June

National Bank of Albania (thousandsof Albanian francs):

GoldForeign exchangeLoans and discountsOther assetsNote circulationDemand depositsOther liabilities

Commonwealth Bank of Australia(thousands of Australian pounds):

Issue department-Gold coin and bullionSecurities

Banking department-Coin, bullien, and cashLondon balancesLoans and discountsSecurities..Deposits

Bank notes in circulationAustrian National Bank (millions of

schillings):GoldForeign exchange of the reserve..-Other foreign exchangeDomestic bills ---Government debt _Note circulationDeposits

National Bank of Belgium (millionsof belgas):

GoldForeign bills and balances in gold.Domestic and foreign billsLoans to State —Note circulationDeposits

Central Bank of Bolivia (thousandsof bolivianos):

Gold at home and abroadForeign exchangeLoans and discountsNote circulation.Deposits

Bank of Brazil (millions of milreis):CurrencyCorrespondents abroadLoans and discountsNote circulationDeposits

National Bank of Bulgaria (millionsof leva):

GoldNet foreign exchange in reserveTotal foreign exchangeLoans and discountsGovernment obligationsNote circulationOther sight liabilities

Central Bank of Chile (millions ofpesos):

Gold at home and abroad.__Foreign exchange for account of—

Bank __.Exchange commission

Loans and discountsGovernment securitiesNote circulationDeposits._.

Central Bank of China 2 (thousandsof Yuan dollars):

GoldSilver _.Due from banks abroadDue from domestic banksLoans and discountsSecurities _ _.Other assets...Note circulation __ _.Deposits—Government

BankOther

Other liabilities

10, 50040, 748

1,17015,15715, 37127,82663, 20644, 600

149430

88193962149

2,5660

8940)3,660223

23,4134,07327,49137, 74914, 456

375116

1,859170

2,024

1,51532338719

2,9652,6281,650

95

7010166210453

5,55627, 8853,6484,69611,34718, 74611, 692

10, 50041,248

1,13014, 38715,61827,19561,81745, 428

164330

87495995112

2,5420

936288

3,608288

329174

2,049170

2,077

1,51419

317728

2,9652,6751,651

95

7014

142180354147

20849, 3225,699

24, 41565,9085,48720,62928,56279, 25017, 7005,643

40, 513

4,96828,0013,9014,79310,95918,84611,858

10, 50041, 746

1,05718, 09416, 28627, 33366,68647, 018

179350

999113

2, 5230

937288

3,653221

21,3365,073

24, 57226,92412, 400

303120

2,019170

2,034

1,51349278747

2,9652,8271,419

95

7020144150352129

3,22143, 8266,90424,73264, 0755,57919,98027,82579,13314, 6435,530

41,186

1,87227,1214,0255,79612,87912, 85813, 076

15,22735, 300

8738, 33228,10518, 08355, 54446, 591

21413331152996

1,111180

1,434874738292

3,193205

2,81924,89423, 64027, 2887,562

37140

1,655170

1,681

1,501255661691

3,0643,2831,439

63

179

"272

47,96733,00733.08744,24914, 2669,764

37, 80591.08817,3979,427

26,623

Bank of the Republic of Colombia(thousands of pesos):

Gold at home and abroadForeign exchangeLoans to member banksNote circulationDeposits

National Bank of Czechoslovakia(millions of Czechoslovak crowns):

GoldForeign balances and currency.__Loans and advancesAssets of banking office in liqui-

dationNote circulationDeposits

Danish National Bank (millions ofkroner):

GoldForeign bills, etcLoans and discountsNote circulationDeposits

Bank of Danzig (thousands of Danziggulden):

GoldForeign exchange of the reserve._Other foreign exchangeLoans and discountsNote circulationDeposits

Central Bank of Ecuador (thousandsof sucres):

GoldForeign exchangeLoans and discountsNote circulation _Deposits.._

National Bank of Egypt2 (thousandsof Egyptian pounds):

GoldForeign exchangeBritish Government securities.>.Loans and discountsEgyptian Government securities.Other assets . .Note circulationDeposits—Government

Othe r . . .Other liabilities

Bank of Estonia (thousands ofkrooni):

GoldNet foreign exchangeLoans and discountsNote circulation - - .Deposits—Government

Bankers'Other _

Bank of Finland (millions ofmarkkaa):

GoldBalances abroad and foreign

creditsForeign billsDomestic billsNote circulationDemand liabilities

Bank of Greece (millions of drach-mas):

GoldNet foreign exchange in reserve-Total foreign exchangeLoans and discountsGovernment gold bonds in

reserveOther Government bonds.Note circulationOther sight liabilities-

Central bank of Guatemala (thou-sands of quetzales):

Gold coin _ _Balances abroadLoans and discounts. .

12,9683,3028,42519,15318, 799

1,6411,0471,643

06,410348

1342214332575

38, 2519,058414

7,30939, 08111,219

5,75911,92118, 46120, 3409,457

11, 4658,30222, 46031, 2664,7566,7602,388

304

454236769

1,136159

10,9055,13211, 02318, 66819, 490

1,6411,1291,162

2866, 582350

1451714831849

37,22210, 752

4808,581

39, 59313,257

5,74112.13016,22219,9137,890

6,6622,29712,1608,27718,0583,43317, 7505,18418, 9938,961

7,33113,06622, 46332,1864,9216,9312,072

304

550222786

1,168219

7,9456,46713, 43217, 85115,933

1,6421,1941,172

2886,740375

1452514633546

21,81628, 642

6738,42041, 24414,166

5,6849,28515,97118, 5615,728

6,4102,90113,1128,40317,0623.49819, 5804,39619,6207,792

7,32512, 72024,14633, 5094,9156,8812,102

304

224778

1,224218

10,08011, 08914, 94223, 8897,472

1,5401,921500

3136,988392

172588734339

13016, 2775,93721, 49335, 8171,625

5,65918, 42214, 28820, 76314, 786

4,2031,708

14, 4607,49414,9553,40618, 3715,47214, 4447,940

6,53217, 37920, 90032, 0595,5346,4022,376

302

662218646

1,232182

4871,9682,868

354

1,628779

6,093

1,827443

6,198

3,2894,2551,448

2,6461,1965,922

1 Figures not available. 1 Items for issue and banking departments consolidated.



CENTRAL BANKS—Continued[Figures are for last report date of month]

Central bank

Central bank of Guatemala—Contd.Other assetsNote circulation

Other liabilitiesNational Bank of Hungary (millions

Gold ._ .__

Other assets

DepositsMiscellaneous liabilities

Bank of Italy (millions of lire):

Credits and balances abroad

Total note circulation

Bank of Japan (millions of yen):GoldAdvances and discounts _

Total dpnnsitsBank of Java (millions of florins):

Gold

DepositsBank of Latvia (millions of lats):

Gold-Foreign exchange reserveBillsLoansNote circulation

Other depositsBank of Lithuania (millions of litu):

Gold _.. . .Foreign currency

DepositsNetherlands Bank (millions of

florins):GoldForeign bills

Note circulation .Deposits

Bank of Norway (millions of kroner):Gold... __Foreign balances and bills

Total deposits _Central Reserve Bank of Peru

(thousands of soles):GoldForeign exchangeBills

Bank of Poland (millions of zlotys):GoldForeign exchange of the reserve.Other foreign exchange

Othpr siffht liabilitiesBank of Portugal (millions of

escudos):GoldOthar reserves -

1932

June

9611

4355321

38972

129

5 6641,4206 398

13,035300

1,389

429837135

1 042456

1052350

22034

36127249367181

5020989667

98069

144981257

1507

278318

281

48446

112795

1 105130

391516

May

1,2255,6011,238

502,837

9615

4095419

37074

123

5 6501,4366 819

13,137300

1 272

429843117

1 017491

1032549

22132

36127351377283

5021989668

95589

1511,006

216

15511

269304

296

40,041233

17,04547 3154 187

55538

117755

1 103161

387530

Apr.

1,1985,6291,154

422,841

9615

4305418

41761

108

5 6301,4845 845

13,375300

1 373

429853117

1 128444

1032448

22428

34137456397578

5021

10110165

90689

155982197

15517

267312

293

41,665550

13,33746 3182 162

57441

117750

1 148129

379538

1931

June

9526,7231,124

1642,704

11210

2796033

3854740

5,3683,9234,669

14,683300

1,504

851697111

1,110515

1152148

24036

24227866396784

3967

10411190

497229145879

68

14622

176296

453

56, 25110,42514, 52658 0524 066

568230119637

1 230270

2520)

Central bank

Bank of Portugal—Continued.Discounts and advances.-Government obligations.-Note circulationOther sight liabilities. _

National Bank of Rumania (millionsof lei):

GoldForeign exchange of the reserve..Other foreign exchangeLoans and discounts._.State debtNote circulation _Demand deposits

South African Reserve Bank (thou-sands of South African pounds):

GoldForeign bills _Domestic billsNote circulationDeposits—Government

BankOther

Bank of Spain (millions of pesetas):GoldSilverBalances abroadLoans and discountsNote circulationDeposits

Bank of Sweden (millions of kronor):GoldForeign bills, etc . .Loans and discountsNote circulation _.Deposits

Swiss National Bank (millions offrancs):

Gold....Foreign balances and bills.. . . .Loans and discountsNote circulationDemand deposits _

Central Bank of the Republic ofTurkey (thousands of Turkishpounds):

GoldForeign exchangeGovernment securities _Other securitiesOther assetsNote circulationSight depositsOther liabilities

Bank of the Republic of Uruguay(thousands of pesos):

Loans and discounts _Other assets.. _Note circulation . . . _ _Deposits—Demand

TimeJudicial and adminis-

trativeOthpr liabilities

State Bank of U. S. S. R. (note-issu-ing department; thousands ofchervontsi):

GoldOther precious metals .Foreign exchangeNote circulation

National Bank of the Kingdom ofYugoslavia (millions of dinars):

Gold _Foreign exchangeLoans and discounts.Advances to StateNote circulationOther sight liabilities

1932

June

310

1,0581,908

324

9,42510163

13, 0365,767

20,8955,699

7,86115

7976,5411,4324,314

314

2,255575292

3,0004,753

928

206134364594230

2,6075666

1,5741,158

18, 5321,737

156,40527,12617, 899

166, 7525,893

49,054

67, 8481,8543,677

292, 545

1,763302

2,2922,4064,933

543

May

310

1,0581,864

375

9,416151

3413,1175,767

21,9824,729

7,29048

1,3547, 6401,2824,107

278

2,253565286

2,9784,830

887

206124357553257

2,5557962

1,5351,166

13,6592,623

156,63027,12618,875

167, 6036,236

45,074

48, 897103, 619

80,90231,29937,832

3,16835,464

65,0822,0743,247

276,684

1,763326

2,3462,4054,942

617

Apr.

319

1,0581,873

394

9,491355

2013,3825,767

22,9044,439

7,05371

1,6828,0961,2374,030

233

2,251559287

3,2564,880

917

206120352576232

2,439112106

1,5291,132

13,6342,966

156, 70027,12617,850

168,4295,426

44,421

49,008102, 67536,01579,98530,87138,041

3,17035, 630

64,3182,1443,340

273,978

1,763304

2,2482,3045,043

355

1931

June

338

1,5311,8360)

8,8381,667

6218,5735,485

18, 7157,060

6,3036,814

8307,3832,7524,879

266

2,426691106

2,8455,214

815

238296375587235

84042074

1,078315

56,402105,16632,26671,01141,04443,858

3,55934, 362

50,8342,4705,251

223,445

1,540933

1,45£1,8254,5641,011

Figures published previous to reorganization of bank July 1, 1931, are not comparable with current figures.



COMMERCIAL BANKS

Country

Argentina (millions of gold pesos):Bank of the Na t ion -

GoldOther cashLoans and discountsDeposits

Other banks in Buenos Aires-GoldOther cashLoans and discountsDeposits

Canada (millions of Canadian dol-lars):

Assets entirely in Canada-Cash in vault *Cash in central gold re-

servesSecurity loansOther current loans

Security loans abroadSecuritiesLiabilities entirely in Canada-

Notes in circulationIndividual demand depos-

its .Individual time deposits. _.

England (millions of pounds ster-ling):

Cash in vault and at bankMoney at call and short notice..Advances and discountsInvestmentsDeposits

France (millions of francs):Bills and national-defense bondsLoans and advancesDemand depositsTime deposits

Germany (millions of reichsmarks):Bills and treasury notesDue from other banksMiscellaneous loansDeposits _.Acceptances

Japan (millions of yen):Cash on handLoansDeposits

1931

June

1108642706

9202871990

150

28182

1,127108695

128

6011,450

184131

1,172272

1,744

22, 50710, 34237,938

1,564

1,914686

7,6999,277

816

2742,1662,233

July

199

655680

9194857971

147

26163

1,126105694

126

5611,451

181128

1,178283

1,750

20, 9199,898

36, 6421,539

1,280546

7,3378,167

874

1342,1692,151

Aug.

194

656662

9199843971

147

28159

1,127110701

126

5681,461

177112

1,156286

1,708

21,1539,868

36,9911,545

1,500514

7,1158,060

840

2172,1402,122

Sept.

191

681663

7190852966

157

24167

1,13790

678

128

5941,456

171106

1,132288

1,675

20, 24210, 07636,137

1,429

1,509465

6,8847,873

818

1972,1462,102

Oct.

190

708661

2186847947

159

27159

1,14191

696

140

5811,462

173113

1,131288

1,688

19,0069,863

36, 9721,370

1,406373

6,8377,500

891

1262,1712,066

Nov.

1109696652

2194830939

201

25157

1,102113719

131

6171,396

170108

1,125284

1,670

17,8519,797

37,0191,332

1,431345

6,7487,390

910

1462,2082,059

Dec.

1107707641

2203817939

175

26135

1,08283

694

129

5671,360

181118

1,131281

1,700

18,4419,697

37,0231,222

1402,2472,051

1932

Jan.

1111675639

1200821936

176

22131

1,07166

674

123

5071,368

177116

1,128268

1,677

18,4549,041

36,1961,179

1242,2832,008

Feb.

1113234642

1199

1,251933

167

20130

1,06399

664

122

4961,390

170108

1,093264

1,621

17,3469,114

36,4351,218

1,503320

5,9357,276

903

1302,2281,954

Mar.

1115680649

1206798933

158

24131

1,07188

671

121

5001,389

171111

1,103266

1,639

17,4828,711

35,9831,201

1,380367

6,0347,289

863

1162,2641,938

Apr.

1105685644

1206794922

150

23122

1,07073

666

125

4951,393

170111

1,105272

1,643

18,0438,312

35,9291,239

1,613267

6,2357,539

872

1362,2481,946

May

1121688664

1212783914

154

23114

1 05765

663

119

4981,387

176110

1 102284

1,661

1,652290

6,1607,652

851

2152,2501,949

June

166

23110

1,03774

669

126

4891,373

188111

1,114324

1,727

1,660257

5,8987,541

815

1562,2521,963

i Gold, Dominion notes, and subsidiary coin.NOTE.—Banks included are as follows: Canada—chartered banks; England—nine London clearing banks; France—four commercial banks;

Germany—six Berlin banks previous to consolidation of Dresdner Bank and Darmstadter und Nationalbank in February, 1932; five Berlin banksthereafter; Japan—Tokyo banks.



DISCOUNT RATES OF CENTRAL BANKS

Date effective

In effect Feb. 1,1931.May 14_ _-May 16June 13-July 16July 23 -_July 30Aug 1Aug 12Sept 2Sept. 21Sept 28Sept. 29Oct 10Dec. 10Feb. 18, 1932Mar. 9 -_.-Mar. 10.- — .Mar. 17Mar 21Apr. 9 —Apr. 19Apr 21Apr 28May 2 . . __May 12June 30 ______In effect Aug. 1,|1932.

Bankof Eng-land

3

6

5

4

3

2H22

Bankof

France

2

2H

2H

GermanReichs-bank

5

710

15108

7

6

5

5

Bankof

Italy

5V_

7

6

5

5

Nether-landsBank

2 *

2

3

234

23/2

SwissNa-

tionalBank

2

.

2

Country

AlbaniaAustriaBelgiumBelivia

BulgariaChileColombiaCzechoslo-

vakia

DanzigDenmark. _EcuadorEstonia

FinlandGreeceHungaryIndia

RateAug.

1

8

7

6

8

6 2

5447

11 2

54

In effectsince—

July 1,1931Mar. 18, L932Jan. 13,1932July 5,1932

May 25,1932Mar. 1,1932Jan. 22,1932

Apr. 12,1932

July 12,1932May 30,1932May 12,1932Feb. 1,1932

Apr. 19,1932Feb. 20,1932July 1,1932July 7,1932

Country

JapanJavaLatviaLithuania

NorwayPeruPoland-Portugal

RumaniaSouth Africa-Spain _•___

SwedenU. S. S. R._.Yugoslavia—.

RateAug.

1

5.11

6 2

6

6 2

76634

48

In effectsince—

June 8,1932Mar. 11,1930Oct. 1,1930Apr. 1,1930

Mav 20,1932May 20,1932Oct. 3,1930Apr. 4,1932

Mar. 4,1932Nov. 13,1931July 8,1931

June 3,1932Mar. 22,1927July 20,1931

Changes since July 1: Bolivia—July 5, down from 7 to 6 per cent;Danzig—July 12, down from 5 to 4 per cent; India—July 7, down from5 to 4 per cent.

MONEY RATES IN FOREIGN COUNTRIES

Month

931—June —July—AugustSeptemberOctoberNovemberDecember


Month

1931—June-JulyAugust _SeptemberOctober _NovemberDecember


England (London)

Bankers'accept-ances,

3 months

2.092.584.284.745.685.755.855.524.632.592.191.441.05

Belgium(Brussels)

Privatediscount

rate

2.132.152.412.442.442.442.442.913.313.363.263.21

Treasurybills, 3months

2.102.444.214.575.465.555.604.944.082.282.071.10.85

France(Paris)

Privatediscount

rate

1.061.201.501.501.801.901.751.751.751.801.661.501.22

Day-to-daymoney

1.642.053.594.044.364.964.274.203.842.401.911.29.99

Italy(Milan)

Privatediscount

rate

5.255.255.255.477.507.507.507.506.926.536.005.525.50

Bankers'allowanceon deposits

11 -2H

2>_2K-4

444

4 -33 -1HW2-l

Germany (Berlin)

Privatediscount

rate

6.0517.0018.92

7.998.008.007.336.946.676.105.124.874.75

Austria (Vienna)

Privatediscount

rate

4 -6)4

Moneyfor 1

month

15^-6

Money for1 month

7.0518.9819.18

9.189.849.317.407.587.987.106.315.965.76

Day-to-daymoney

6.741 8.8919.15

9.159.218.698.457.867.817.766.175.915.70

Hungary

Primecommer-cial paper

5^-87^-10K8y2-ioy28 -ioy27H-107%-107M-1063 -10

6H-9M5M-9

Day-to-daymoney

4M-6H15H-6M

5 -65 -65 -65 -64M-6H4M-5^_5 -5M4M-5

Netherlands (Amster-dam)

Privatediscount

rate

1.051.531.301.302.761.591.572.241.871.221.02.60.39

Sweden(Stock-holm)

Loans upto 3

months

3 -54 -64 -68 -W*6 -iy26 -7*_6 -7K6 -73^5H-75 -75 -74^-64 -5>_

Money for1 month

1.071.401.221.213.071.731.592.371.691.06.94

1.031.00

Switzer-land

Privatediscount

rate

1.121.551.981.801.901.771.751.681.521.501.501.501.50

Japan (Tokyo)

Discountedbills

5.29-5.484. 93-5.484.93-5.484. 93-5. 484. 93-5. 665. 48-6. 575.84-6. 575. 84-6. 575. 84-6. 576. 20-6. 576. 20-6. 576. 20-6.57

Callmoney

overnight

2.192.743.652.565.485.666.576.026.395.845.484.56

1 Based on data for part of month, no quotations being available for remainder of month.



FOREIGN EXCHANGE RATES[Monthly averages of daily quotations based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency]

Month Argen-tina Austria Belgium Brazil Bulgaria Canada Chile

China (and Hong Kong)

Mexi-can dol-

larShang-hai tael

Yuandollar

HongKongdollar

Colom-bia

1931—July__AugustSeptemberOctoberNovemberDecember

1932—JanuaryFebruary.March •_AprilMayJuneJuly

69. 884064. 572259. 694851.996658. 840358. 5196

58. 272458. 220458. 287958. 217158. 324258. 520558. 5574

14. 041314. 040614. 038813. 915813. 951613. 9460

13.951813.951613.960113. 954413. 964513.960013. 9813

13. 945313.937613. 909113. 985213. 907013. 9039

13.914013.938413. 936113. 995614. 024913.936613. 8724

7.19376.36935. 90995. 62026.17046. 20106.15796.17206. 21216. 54027.12947. 50087. 5960

.7183

. 7154

. 7160

.7127

.7138

.7148

.7151

.7145

.7176

.7201

.7202

.7200

.7230

99. 660799. 689896. 247689.102588. 991482. 706485.130187. 293689. 453089. 880888. 443086. 742787.0658

12. 079812. 054912. 043012. 069012. 075012. 0669

12. 050012. 050012. 060610. 65386. 00006. 02026. 0250

22. 431521. 430122. 069622. 820524. 583323. 601023. 523724. 469623.996922. 317321.641221. 231920. 5462

31. 009729. 725530. 660431.831434. 073232.805432. 635733.144932. 806131. 248130. 470030. 200729.3650

22. 424721. 348521. 916622. 701924. 724623. 732323. 696624. 358723. 921322. 322121.711621.312520. 6400

24. 729523. 783024.185324. 676526. 012424. 870424. 839625. 335324. 685523.718723. 433723.343122. 8893

96. 570096. 570096. 570096. 570096. 570096. 5692

95. 665695. 240095. 240095. 240095. 240095. 240095. 2400

Month Cuba Czecho-slovakia

Den-mark England

1931—JulyAugustSeptember.October.,.November.December.


99.912499. 970399.967899.994499. 991399. 9470

99.929699.9622100. 059099. 981699.929999.921799. 9186

2.96052. 96242.96212.96192. 96252.96262. 96272.96272.96282. 96292. 96502.96412. 9589

26. 734026. 729225. 263622. 020920. 670018.5875

18. 880119. 019220. 011220. 526720.065419.924819. 2044

485. 6052485. 7725453.1260388.9291371.9934337.3707

343.1210345. 6316363. 9304374. 9994367.5140364. 6648354. 9564

Fin-land France Ger-

many Greece Hungary India Italy Japan

2. 51562. 51482. 51332.30821. 98391.6938

1. 50361. 50141. 60151. 72251. 71711. 70191. 5350

3. 92153. 91963. 92573.93833. 92013.92293. 92943.93793. 93253. 94303. 94683. 93633. 9207

23. 278223. 657623. 421223. 239523. 677723. 619223. 647523. 739223. 781223. 742723. 794723.687823. 7176

1. 29393. 29361. 29261. 28831. 28791. 2879

1. 28771. 28751. 28751. 2318.6641.6387.6399

17. 443317. 451517. 449617. 464017. 467017.458017. 450017. 439717. 435317. 429817. 438417.474017. 4612

35. 986535. 942533.911728. 679927. 987425.361225. 817926. 032927. 312128. 013327. 317527.164726.6842

5. 23005. 23045.16995.16455.15485.1094

5. 04415.17995.18245.14935.14915.11625.1009

49. 355049. 353249. 335149. 252549. 296843. 4644

35. 986634. 323332.156232.806331.973030. 285627.4471

Month Mexico Nether-lands Norway Poland Portugal Ru- Spain

StraitsSettle-ments

Sweden Switzer-land Uruguay Yugo-

slavia

1931—July.AugustSeptember.October...November.December.


49.0109^30.026933. 408136. 587839.136439. 008639. 329437. 871233.684133. 372830. 254026. 897727. 7321

40. 277540. 318240. 267740. 425640.191640. 2338

40.182840. 347940. 279940. 491440. 547440. 441140. 2740

26.734626. 732825. 398222. 073720. 516318. 483118. 696918. 770119. 600319. 078018. 482318.062617. 6386

11.199111.197011.197811.195511.190311.1902

11.193411.189611.177011.184711.181011.183911.1885

4. 41624. 42164. 42323. 92713. 64013. 23023.16423.18303. 28323. 38043. 32673.33203. 2240

.5943

.593(5

.5936

.5953

.5966

.5959

.5951

.5950

.5958

. 5960

.5970

.5966

.5972

9. 31398. 79648. 98398. 96318. 61378.3992

8. 39457. 76717. 59937. 69428.11698. 24518.0518

56. 019856. 004453.556645.125043.138639. 031339. 690039. 774541. 333342. 740442. 240041.956740. 9675

26. 755826. 748726. 085723.114020. 737818.709819.188819. 292219. 854019. 091018. 723818.704918.2190

19. 430919. 486219.509619. 600919. 463219. 4805

19. 507419. 496119. 340519. 437419.557919.514119.4G84

54. 265246. 014741. 925434. 896845. 002744. 548744. 916046.152147. 079647.318647. 543347.211547. 5080

1. 76651. 76941. 76531. 77341. 78561. 7796

1. 77841. 78031. 77531. 77251. 77431. 74361.6717

Monetary units and pars of exchange (in cents per unit of foreign currency):

Country Monetary unitPar of

ex-change


ex-change


ex-change

ArgentinaAustriaBelgium ,.BrazilBulgariaCanadaChile

China (and HongKong).

Colombia..Cuba

Gold pesoSchillingBelgaMilreisLev.DollarPeso

(Mexican dollar 2

I Shanghai tael2-] Y *

96.4814.0713.9011.96

.72100.0012.1721.2229.26

Czechoslovakia..DenmarkEnglandFinlandFranceGermany

KorunaKronePoundMarkkaFranc.

]I Hong Kong dollar5

Peso.— . d o

20.7621.0797.33100.00

GreeceHungaryIndiaItaly-JapanMexicoNetherlands.

Reichsmark..DrachmaPengoRupeeLiraYenSilver peso..Florin _.

2.9626.80

486. 662.523.92

23.821.30

17.4936.505.26

49.8549.8540.20

NorwayPolandPortugal.Rumania.SpainStraits Settle-

ments.3SwedenSwitzerland.UruguayYugoslavia

KroneZloty.__EscudoLeuPesetaS t r a i t s S e t t l e -

ments dollar.KronaFranc.PesoDinar

26.8011.224.42.60

19.3041.41

26.8019.30

103.421.76

1 Beginning with August, quotations are for silver peso.2 Silver currencies—Figures given for parity represent gold value of unit in July, 1934, computed by multiplying silver content of unit by New

York average price of silver for July, 1932, which was $0.27012 per fine ounce.3 Straits Settlements dollar is legally equivalent to seven-sixtieths of one English pound. Figure given for parity represents seven-sixtieths

of average quotation of pound in New York for July, 1932.Back figures.—See BULLETIN for January, 1932, 1931, 1930, 1929, and 1928.


516 FEDEKAL RESERVE BULLETIN AUGUST, 1932

PRICE MOVEMENTS IN PRINCIPAL COUNTRIES

SECURITY PRICES

[Index numbers except as otherwise specified]

Month

Number of issues

1930—MayJune .- .July .August

October.-

December.. - _

1931—January

March _„ _ _AprilMay . _JuneJulyAugustSeptemberOctoberNovember ... __ .

1932—JanuaryFebruaryMarchApril _ _.MayJune

Bonds

UnitedStates

(averageprice)

60

97.998.298.799.6

100.099.999.197.8

99.699.4

100.099.699.799.499.498.595.689.489.081.6

81.080.380.879.475.272.2

England(December,1921=100)

87

111.4110.0112.3111.9112.0113.1112.8112.5

112.8109.7111.6111.3110.8111.1111.2107.2103.5104.2104.8102.2

104.7106.5111.6110.6111.4111.0

France(1913 aver-age =100)

35

95.395.895.796.696.495.494.794.1

95.797.197.999.098.498.898.999.597.794.894.490.8

91.590.390.589.085.985.2

Germany(averageprice) 2

169

84.585.386.085.785.483.783.282.7

82.782.783.884.884.282.481.4

70.4(3)(3)

(3)63.064.4

Common stocks (1926 average=

UnitedStates

421

170.5152.8149.3147.6148.8127.6116.7109.4

112.3119.8121.6109.298.095.198.295.581.769.771.757.7

58.056.456.843.939.834.0

England

278

108.0101.8103.198.4

101.195.494.189.0

89.689.389.485.176.877.879.273.867.275.674.768.1

69.768.969.663.561.659.3

France

300

198.3187.6188.8182.0182.4169.5162.2149.8

156.7160.1155.4148.5138.2141.2132.6130.5115.5106.9104.394.8

107.3126.2117.6107.394.497.4

= 100)1

Germany

'329

111.7106.8100.994.893.987.984.780.0

75.078.583.684.876.169.6

«70.5

* 52.3(3)(3)(3)

(3)(3)

«45.546.4

1 Stock price series for England, France, and Germany have been converted from original bases to a 1926 base.2 New series compiled by the Statistisches Reichsamt; weighted average of the prices of one hundred sixty-nine 6 per cent bonds.* Figures not available because of closing of the exchange.* Based on data for part of month, no quotations being available for remainder of month.Back figures.—See BULLETIN for February, 1932, and sources there cited.

WHOLESALE PRICES—ALL COMMODITIES

Month

1930—MayJune _JulyAugustSeptemberOctoberNovember _December

1931—Januar3r

February „ __MarchAprilMay _JuneJuly .August __SeptemberOctober.. .NovemberDecember ...

1932—January _FebruaryMarchAprilMayJune

UnitedStates

(1926=100)

8987848484838180

787776757372727271707069

676666666464

Canada(1926=100)

9088868482818078

777675747372727170707170

696969686867

England(1913=100)

122121119118116113112109

10710610610610410310210099

104106106

10610510510210198

France(1913=100)

546540558560556552551541

541538539540520518500488473457447442

439446444439438425

Germany(1913=100)

126125125125123120120118

115114114114113112112110109107107104

100100100989796

Italy(1913=100)

389382375379374364361350

342338339337332327324322319322320319

317314315311305297

Japan(Oct.,

1900=100)

189181177176172165162161

158158158158154151153152150147147151

160161159154150146

Nether-lands

(1913=100)

118118115114112111110107

105104103102102100979491898985

848382807978



PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—ContinuedWHOLESALE PRICES—GROUPS OF COMMODITIES

[Groups are those included in indexes shown in preceding table]

Month

United States (1926=100)

Farm

products

9389838585837975

737071706765656461595956

535150494746

Foods

9291878890898682

817878767473747574737169

656362615959

Othercommod-

ities

8786858483828180

797877767574747474737472

727171717070

England (1913=100)

Foods

127127127126124121121116

113112111113113113110108108113115113

114114116115114112

Indus-trial

products

119117115113111109107105

10410310310210098989595100102102

10110199969491

France (1913 =100)

Farmand foodproducts

483488540550562562570570

580575581592566571541528508489482491

496511510506511490

Indus-trial

products

601587573568551543535516

507505503495480472465452443429416400

390389388381374369

Agricul-tural

products

111110115117114109112110

107106107108109107105103101999995

929597959392

Germany (1913=100)

Provi-

sions

117115114111108108108105

10210099979695979694959491

909189888785

Indus-trial rawand semi-finishedproducts

124122119118116114113110

108106106105103103103102100999997

929190898887

Indus-trial fin-ished

products

152151151149148147145143

142140139138137137136136135133132130

125122121120119118

1930—MayJuneJulyAugustSeptember.OctoberNovember..December..

1931—JanuaryFebruary...MarchAprilMayJuneJulyAugustSeptember.OctoberNovember.December..

1932—January...February.MarchAprilMayJune

RETAIL FOOD PRICES COST OF LIVING

Month

UnitedStates

(1913=100)

1931 1932

England(July,

1914=100)

1931 1932

France(July,

1914=100)

1931 1932

Germany(1913-

14=100) iMonth

1931 1932

UnitedStates

(1913 = 100)

1931 1932

England(July,

1914 = 100)

1931 1932

France(Jan.-June,1914=100)

1931 1932

Germany(1913-

14=100) »

1931 1932

JanuaryFebruary _.MarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

133127126124121118119120119119117114

109105105104101100

138136134129129127130128128128130132

131131129126125123

132132131130129128125121119116113113

114115115115114111

134131130129130131130126125123122120

116114114113113113

JanuaryFebruaryMarchAprilMay _JuneJ u l y . . . .AugustSeptemberOctoberNovemberDecember

136

153152150147147145147145145145146148

147147146144143142

120 108

120

"115'

108

140139138137137138137135134133132130

125122122122121121

1 Average of October, 1913, January, April, and July, 1914=100.

SOURCES: Wholesale prices.—For original sources, see BULLETIN for March, 1931 (p. 159). Retail food prices and cost of living.—United States—Bureau of Labor Statistics, Department of Labor; England^—Ministry of Labour; Germany—Statistisches Reichsamt; France—tor retail food prices,Statistique Generale, and for cost of living, Commission d'6tudes relatives au cout de la vie a Paris.



LAW DEPARTMENT

Discounts for individuals, partnerships, and corpora-tions.

There is published below the text of a circu-lar issued by the Federal Reserve Board re-garding discounts for individuals, partnerships,and corporations under the provisions of thethird paragraph of section 13 of the Federalreserve act as amended by section 210 of theemergency relief and construction act of 1932,which was signed by the President on July 21,1932. This circular was issued by the FederalReserve Board on July 26, 1932, and becameeffective on August 1, 1932. By the pro-visions of Section II, the Federal Reserve Boardauthorized all Federal reserve banks, for aperiod of six months beginning August 1, 1932,to discount eligible notes, drafts, and bills ofexchange for individuals, partnerships, and cor-porations, subject to the provisions of the law,the board's regulations, and the circular.

FEDERAL RESERVE BOARD,WASHINGTON, July 26, 1932.

DISCOUNTS FOR INDIVIDUALS, PARTNERSHIPS,AND CORPORATIONS

To all Federal Reserve Banks:The third paragraph of section 13 of the

Federal reserve act, as amended by the act ofJuly 21, 1932, provides as follows:

In unusual and exigent circumstances, the FederalReserve Board, by the affirmative vote of not lessthan five members, may authorize any Federal reservebank, during such periods as the said board may deter-mine, at rates established in accordance with the pro-visions of section 14, subdivision (d), of this Act, todiscount for any individual, partnership, or corpora-tion, notes, drafts, and bills of exchange of the kindsand maturities made eligible for discount for memberbanks under other provisions of this Act when suchnotes, drafts, and bills of exchange are indorsed andotherwise secured to the satisfaction of the Federalreserve bank: Provided, That before discounting anysuch note, draft, or bill of exchange for an individualor a partnership or corporation the Federal reservebank shall obtain evidence that such individual, part-nership, or corporation is unable to secure adequatecredit accommodations from other banking institutions.All such discounts for individuals, partnerships, or cor-porations shall be subject to such limitations, restric-tions, and regulations as the Federal Reserve Boardmay prescribe.

In view of the fact that the power conferredby this provision can be exercised only in" unusual and exigent circumstances/7 the Fed-eral Eeserve Board has not prescribed anyformal regulations governing the exercise ofthis power; but the requirements of the law andthe procedure which the Federal Reserve Board

will expect to be followed are outlined belowfor the information of the Federal reservebanks and any individuals, partnerships, orcorporations that may contemplate applyingto them for discounts.

I. LEGAL REQUIREMENTS

It will be observed that, by the express termsof the law:

1. The power conferred upon the FederalReserve Board to authorize Federal reservebanks to discount eligible paper for individuals,partnerships, or corporations, may be exercisedonly—

(a) In unusual and exigent circumstances,(6) By the affirmative vote of not less than

five members of the Federal Reserve Board,and

(c) For such periods as the Federal ReserveBoard may determine.

2. When so authorized, a Federal reservebank may discount for individuals, partner-ships, or corporations only notes, drafts, andbills of exchange of the kinds and maturitiesmade eligible for discount for member banks,under other provisions (sees. 13 and 13a) ofthe Federal reserve act. (Such paper must,therefore, comply with the applicable require-ments of regulation A of the Federal ReserveBoard.)

3. Paper discounted for individuals, partner-ships, or corporations must be both (a) in-dorsed and (b) otherwise secured to the satis-faction of the Federal reserve bank.

4. Before discounting paper for any indi-vidual, partnership, or corporation, a Federalreserve bank must obtain evidence that suchindividual, partnership, or corporation is una-ble to secure adequate credit accommodationsfrom other banking institutions.

5. Such discounts may be made only at ratesestablished by the Federal reserve banks, sub-ject to review and determination by the FederalReserve Board.

6. All discounts for individuals, partner-ships, or corporations are subject to such limi-tations, restrictions, and regulations as theFederal Reserve Board may prescribe.

II. AUTHORIZATION BY THE FEDERAL RESERVEBOARD

The Federal Reserve Board, pursuant to thepower conferred upon it by the amendmenthereinbefore quoted, hereby authorizes allFederal reserve banks, for a period of six



months beginning August 1, 1932, to discounteligible notes, drafts, and bills of exchange forindividuals, partnerships, and corporations,subject to the provisions of the law, the board'sregulations, and this circular.

III . FOR WHOM PAPER MAY BE DISCOUNTED

A Federal reserve bank may discount forindividuals, partnerships, or corporations notes,drafts, or bills of exchange, which are the obli-gations of other parties actually owned by suchindividuals, partnerships, or corporations, andindorsed by them, or the promissory notes ofsuch individuals, partnerships, or corporationsindorsed by other parties whose indorsementsare satisfactory to the Federal reserve bank.

Within the meaning of this circular, the term"corporations" does not include banks.

IV. APPLICATIONS FOR DISCOUNT

Each application of an individual, partner-ship, or corporation for the discount of eligiblepaper by the Federal reserve bank must beaddressed to the Federal reserve bank of thedistrict in which the principal place of businessof the applicant is located, must be made inwriting on a form furnished for that purposeby the Federal reserve bank, and must contain,or be accompanied by, the following:

(1) A statement of the circumstances givingrise to the application and of the purposes forwhich the proceeds of the discount are to beused;

(2) Evidence sufficient to satisfy the Federalreserve bank as to (a) the legal eligibility ofthe paper offered for discount under section 13or section 13 (a) of the Federal reserve act andregulation A of the Federal Reserve Board and(b) its acceptibility from a credit standpoint;

(3) A statement of the efforts made by theapplicant to obtain adequate credit accommo-dations from other banking institutions, includ-ing the names and addresses of all other bank-ing institutions to which applications for suchcredit accommodations were made, the datesupon which such applications were made,whether such applications were definitelyrefused, and the reasons, if any, given for suchrefusal;

(4) A list showing each bank with which theapplicant has had banking relations, either asa depositor or as a borrower, during the pre-ceding year, with the approximate date uponwhich such banking relations commenced and,if such banking relations have been terminated,the approximate date of their termination;

(5) Complete credit data regarding the finan-cial condition of the -principal obligors and in-dorsers on the paper offered for discount;

(6) A list and description of the collateral orother security offered by the applicant;

(7) A waiver by the applicant of demand,notice, and protest as to applicant's obligationon all paper discounted by the Federal reservebank or held by the Federal reserve bank assecurity; and

(8) An agreement by the applicant, in formsatisfactory fo) the Federal reserve bank, (a) tofurnish additional credit information to theFederal reserve bank when requested; (6) tosubmit to audits, credit investigations, or ex-aminations by representatives of the Federalreserve bank at the expense of the applicantwhenever requested by the Federal reservebank; and (c) to furnish additional securitywhenever requested to do so by the Federalreserve bank.

V. GRANT OR REFUSAL OF APPLICATION

Before discounting notes, drafts, or bills ofof exchange for any individual, partnership, orcorporation the Federal reserve bank shallascertain to its satisfaction by such means asit may deem appropriate—

(1) That the financial condition and creditstanding of the applicant justify the grantingof such credit accommodations;

(2) That the paper offered for discount isacceptible from a credit standpoint and eligibleffom a legal standpoint;

(3) That the security offered is adequate toprotect the Federal reserve bank against loss;

(4) That there is a reasonable need for suchcredit accommodations; and

(5) That the applicant is unable to obtainadequate credit accommodations from otherbanking institutions.

A special effort should be made to determinewhether the banking institution with whichthe applicant ordinarily transacts his bankingbusiness or any other banking institution towhich the applicant ordinarily would haveaccess is willing to grant such credit accommo-dations.

A Federal reserve bank should not discountsuch paper unless it appears that the proceedsof such discounts will be used to finance currentbusiness operations and not for speculativepurposes, for permanent or fixed investments,or for any other capital purposes. Exceptwith the permission of the Federal ReserveBoard, no such paper should be discounted if itappears that the proceeds will be used for the



purpose of paying off existing indebtedness toother banking institutions.

In discounting paper for individuals, partner-ships, or corporations, a Federal reserve bankshould not make any commitment to renewor extend such paper or to grant further oradditional discounts.

VI. LIMITATIONS

Except with the permission of the FederalReserve Board, no Federal reserve bank shalldiscount for any one individual, partnership,or corporation paper amounting in the aggre-gate to more than 1 per cent of the paid-incapital stock and surplus of such Federalreserve bank.

VII. ADDITIONAL REQUIREMENTS

Any Federal reserve bank may prescribe suchadditional requirements and procedure respect-ing discounts hereunder as it may deem neces-sary or advisable; provided that such require-ments and procedure are consistent with theprovisions of the law, the board's regulations,and the terms of this circular.

By order of the Federal Reserve Board.CHESTER MORRILL, Secretary.

Emergency relief and construction act of 1932.

There is published below the text of theemergency relief and construction act of 1932,which was signed by the President on July 2\d1932. Section 210 of this act amends section13 of the Federal reserve act so as to authorizeFederal reserve banks, in certain circumstances,to discount for individuals, partnerships, orcorporations notes, drafts, and bills of exchangeof the kinds and maturities made eligible fordiscount for member banks.

[PUBLIC—No. 302—72D CONGRESS]

[H. R. 9642]

AN ACT To relieve destitution, to broaden the lending powers of theReconstruction Finance Corporation, and to create employment byproviding for and expediting a public-works program.

Be it enacted by the Senate and House of Representa-tives of the United States of America in Congress assem-bledy That this Act may be cited as the " EmergencyRelief and Construction Act of 1932."

TITLE I RELIEF OF DESTITUTION

SECTION 1. (a) The Reconstruction Finance Corpo-ration is authorized and empowered to make availableout of the funds of the corporation the sum of$300,000,000, under the terms and conditions herein-after set forth, to the several States and Territories, tobe used in famishing relief and work relief to needy anddistressed people and in relieving the hardship resultingfrom unemployment, but not more than 15 per centum

of such sum shall be available to any one State or Terri-tory. Such sum of $300,000,000 shall, until the expira-tion of two years after the date of enactment of thisAct, be available for payment to the governors of theseveral States and Territories for the purposes of thissection, upon application therefor by them in accordancewith subsection (c), and upon approval of such applica-tions by the corporation.

(b) All amounts paid under this section shall bearinterest at the rate of 3 per centum per annum, and,except in the case of Puerto Rico and the Territory ofAlaska, shall be reimbursed to the corporation, withinterest thereon at the rate of 3 per centum per annum,by making annual deductions, beginning with the fiscalyear 1935, from regular apportionments made fromfuture Federal authorizations in aid of the States andTerritories for the construction of highways and ruralpost roads, of an amount equal to one-fifth of the share 'which such State or Territory w ould be entitled to re-ceive under such apportionment, except for the provi-sions of this section, or of an amount equal to one-fifthof the amounts so paid to the governor of such Stateor Territory pursuant to this section and all accruedinterest thereon to the date of such deduction, which-ever is the lesser, until the sum of such deductions equalsthe total amounts paid under this section and all ac-crued interest thereon. Whenever any such deductionis made, the Secretary of the Treasury shall immediatelypay to the corporation an amount equal to the amountso deducted. If any State or Territory shall, withintwo years after the date of enactment of this Act, enterinto an agreement with the corporation for the repay-ment to the corporation of the amounts paid under thissection to the governor of such State or Territory, withinterest thereon as herein provided, in such installmentsand upon such terms as may be agreed upon, then thededuction under this subsection shall not be made unlesssuch State or Territory shall be in default in the per-formance of the terms of such agreement. In the caseof a default by the State or Territory in any such agree-ment, the agreement shall thereupon be terminated andreimbursement of the unpaid balance of the amountcovered by such agreement shall be made by makingannual deductions in the manner above provided (be-ginning with the fiscal year next following such default)from regular apportionments made to such State orTerritory from future Federal authorizations in aid ofthe States and Territories for the construction of high-ways and rural post roads. Before any amount is paidunder this section to the Governor of Puerto Rico or ofthe Territory of Alaska, Puerto Rico or the Teriitoryof Alaska shall enter into an agreement with the corpo-ration for the repayment of such amount with interestthereon as herein provided, in such installments andupon such terms and conditions as may be agreed upon:

(c) The governor of any State or Territory may fromtime to time make application for funds under thissection, and in each application so made shall certifythe necessity for such funds and that the resources ofthe State or Territory, including moneys then availableand which can be made available by the State or Terri-tory, its political subdivisions, and private contribu-tions, are inadequate to meet its relief needs. Allamounts paid to the governor of a State or Territoryunder this section shall be administered by the gover-nor, or under his direction, and upon his responsibility.The governor shall file with the corporation and withthe auditor of the State or Territory (or, if there is noauditor, then with the official exercising comparableauthority) a statement of the disbursements made byhim under this section.

(d) Nothing in this section shall be construed toauthorize the corporation to deny an otherwise accept-



able application under this section because of constitu-tional or other legal inhibitions or because the State orTerritory has borrowed to the full extent authorized bylaw. Whenever an application under this section isapproved by the corporation in whole or in part, theamount approved shall be immediately paid to thegovernor of the State or Territory upon delivery byhim to the corporation of a receipt therefor stating thatthe payment is accepted subject to the terms of thissection.

(e) Any portion of the amount approved by the cor-poration for payment to the governor of a State orTerritory shall, at his request, and with the approvalof the corporation, be paid to any municipality orpolitical subdivision of such State or Territory if (1)the governor makes as to such municipality or politicalsubdivision a like certificate as provided in subsection(c) as to the State or Territory, and (2) such municipal-ity or political subdivision enters into an agreementwith the corporation for the repayment to the corpora-tion of the amount so paid, with interest at the rate of3 per centum per annum, at such times, and upon suchother terms and conditions, as may be agreed uponbetween the corporation and such municipality orpolitical subdivision. The amount paid to any munici-pality or political subdivision under this subsection shallnot be included in any amounts reimbursable to thecorporation under subsection (b) of this section.

(f) As used in this section the term "Territory"means Alaska, Hawaii, and Puerto Rico.

TITLE II LOANS BY KECONSTRT7CTION FINANCE COR-PORATION

SEC. 201. (a) The Reconstruction Finance Corpora-tion is authorized and empowered—

(1) to make loans to, or contracts with, States,municipalities, and political subdivisions of States,public agencies of States, of municipalities, and ofpolitical subdivisions of States, public corpora-tions, boards and commissions, and public muni-cipal intrumentalities of one or more States, toaid in financing projects authorized under Federal,State, or municipal law which are self-liquidatingin character, such loans or contracts to be madethrough the purchase of their securities, or other-wise, and for such purpose the ReconstructionFinance Corporation is authorized to bid for suchsecurities: Provided, That nothing herein con-tained shall be construed to prohibit the Recon-struction Finance Corporation, in carrying out theprovisions of this paragraph, from purchasingsecurities having a maturity of more than tenyears;

(2) to make loans to corporations formed whollyfor the purpose of providing housing for familiesof low income, or for reconstruction of slum areas,which are regulated by State or municipal law asto rents, charges, capital structure, rate of return,and areas and methods of operation, to aid infinancing projects undertaken by such corpora-tions which are self-liquidating in character;

(3) to make loans to private corporations to aidin carrying out the construction, replacement, orimprovement of bridges, tunnels, docks, viaducts,waterworks, canals, and markets, devoted topublic use and which are self-liquidating in char-acter;

(4) to make loans to private limited dividendcorporations to aid in financing projects for theprotection and development of forests and otherrenewable natural resources, which are regulated

by a State or political subdivision of a State andare self-liquidating in character; and

(5) to make loans to aid in financing the con-struction of any publicly owned bridge to be usedfor railroad, railway, and highway uses, the con-struction cost of which will be returned in part bymeans of tolls, fees, rents, or other charges, and theremainder by means of taxes imposed pursuant toState law enacted before the date of enactment ofthe Emergency Relief and Construction Act of1932; and the Reconstruction Finance Corporationis further authorized and empowered to purchasebonds of any State, municipality, or other publicbody or agency issued for the purpose of financingthe construction of any such bridge irrespective ofthe dates of maturity of such bonds.

For the purposes of this subsection a project shall bedeemed to be self-liquidating if such project will bemade self-supporting and financially solvent and if theconstruction cost thereof will be returned within areasonable period by means of tolls, fees, rents, or othercharges, or by such other means (other than by taxa-tion) as may be prescribed by the statutes which pro-vide for the project. All loans and contracts made bythe Reconstruction Finance Corporation in respect ofprojects of the character specified in paragraphs (1) to(5) of this subsection shall be subject to the conditionsthat no convict labor shall be directly employed onany such project, and that (except in executive, admin-istrative, and supervisory positions), so far as practi-cab!e, no individual directly employed on any suchproject shall be permitted to work more than thirtyhours in any one week, and that in the employment oflabor in connection with any such project preferenceshall be given, where they are qualified, to ex-servicemen with dependents.

The provisions of this subsection shall apply withrespect to projects in Puerto Rico and the Territoriesto the same extent as in the case of projects in the sev-eral States, and as used in this subsection the term"States" includes Puerto Rico and the Territories.

(b) The Reconstruction Finance Corporation shallsubmit monthly to the President and to the Senateand the House of Representatives (or the Secretary ofthe Senate and the Clerk of the House of Repre-sentatives, if those bodies are not in session) a reportof its activities and expenditures under this section andunder the Reconstruction Finance Corporation Act,together with a statement showing the names of theborrowers to whom loans and advances were made, andthe amount and rate of interest involved in each case.

(c) In order that the surpluses of agriculturalproducts may not have a depressing effect upon currentprices of such products, the corporation is authorizedand. directed to make loans, in such amounts as may inits judgment be necessary, for the purpose of financingsales of such surpluses in the markets of foreign coun-tries in which such sales can not be financed in the nor-mal course of commerce; but no such sales shall befinanced by the* corporation if, in its judgment, suchsales will affect adversely the world markets for suchproducts: Provided, however, That no such loan shall bemade to finance the sale in the markets of foreign coun-tries of cotton owned by the Federal Farm Board orthe Cotton Stabilization Corporation.

(d) The Reconstruction Finance Corporation is au-thorized and empowered to make loans to bona fide insti-tutions, organized under the laws of any State or of theUnited States and having resources adequate for theirundertakings, for the purpose of enabling them to financethe carrying and orderly marketing of agricultural com-modities and livestock produced in the United States.



(e) The Reconstruction Finance Corporation isfurther authorized to create in any of the twelve Federalland-bank districts where it may deem the same to bedesirable a regional agricultural credit corporation witha paid-up capital of not less than $3,000,000, to be sub-scribed for by the Reconstruction Finance Corporationand paid for out of the unexpended balance of theamounts allocated and made available to the Secretaryof Agriculture under section 2 of the ReconstructionFinance Corporation Act. Such corporations shall bemanaged by officers and agents to be appointed by theReconstruction: Finance Corporation under such rulesand regulations as its board of directors may prescribe.Such corporations are hereby authorized and empow-ered to make loans or advances to farmers and stock-men, the proceeds of which are to be used for an agri-cultural purpose (including crop production), or for theraising, breeding, fattening, or marketing of livestock,to charge such rates of interest or discount thereon asin their judgment are fair and equitable, subject to theapproval of the Reconstruction Finance Corporation,and to rediscount with the Reconstruction FinanceCorporation and the various Federal reserve banks andFederal intermediate credit banks any paper that theyacquire which is eligible for such purpose. All ex-penses incurred in connection with the operation of suchcorporations shall be supervised and paid by the Recon-struction Finance Corporation under such rules andregulations as its board of directors may prescribe.

(f) All loans made under this section, and all con-tracts of the character described in paragraph (1) ofsubsection (a), shall be fully and adequately secured.The corporation, under such conditions as it shall pre-scribe, may take over or provide for the administrationand liquidation of any collateral accepted by it as se-curity for such loans. Such loans shall be made onsuch terms and conditions, not inconsistent with thisAct, as the corporation may prescribe, and may bemade directly upon promissory notes or by way of dis-count or rediscount of obligations tendered for the pur-pose, or otherwise in such form and in such amount andat such interest or discount rates as the corporation mayapprove: Provided, That no loans or advances (exceptloans under subsection (c)) shall be made upon foreignsecurities or foreign acceptances as collateral.

(g) Each such loan may be made for a period notexceeding three years, and the corporation may, fromtime to time, extend the time of payment of any suchloan, through renewal, substitution of new obligations,or otherwise, but the time for such payment shall notbe extended beyond five years from the date uponwhich such loan was made originally: Provided, Thatloans or contracts of the character described in sub-section (a) may be made for a period not exceeding tenyears: Provided further, That loans or contracts of thecharacter described in paragraph (1) or (5) of subsec-tion (a) may be made for a period exceeding ten yearswhen it is the judgment of the board of directors of thecorporation that it is necessary to purchase securitiesas provided in such paragraphs and that it is not prac-ticable to require the reimbursement of the corpora-tion, within ten years, through the repurchase orpayment of such securities, or in any other manner.

(h) The corporation may make loans under thissection at any time prior to January 23, 1934.

(i) No fee or commission shall be paid by any appli-cant for a loan under the provisions of this section inconnection with any such application or any loanmade or to be made under this section, and the agree-ment to pay or payment of any such fee or commissionshall be unlawful.

(j) No loan under this section shall be made to arailroad or to a receiver of a railroad except on theapproval of the Interstate Commerce Commission.Any railroad may obligate itself in such form as shallbe prescribed and otherwise comply with the require-ments of the Interstate Commerce Commission andthe corporation with respect to the deposit or assign-ment of security hereunder, without the authorizationor approval of any authority, State or Federal, andwithout compliance with any requirement, State orFederal, as to notification, other than such as may beimposed by the Interstate Commerce Commission andthe corporation under the provisions of this section.

SEC. 202. The last sentence of the second paragraphof section 5 of the Reconstruction Finance CorporationAct is amended by striking out " 5 " and inserting"2%" in lieu thereof.

SEC. 203. The second sentence of the third para-graph of section 5 of the Reconstruction FinanceCorporation Act is hereby repealed.

SEC. 204. Section 8 of the Reconstruction FinanceCorporation Act is amended to read as follows:

" S E C . 8. In order to enable the corporation to carryout the provisions of this Act and the Emergency Reliefand Construction Act of 1932, the Treasury Depart-ment, the Federal Farm Loan Board, the Comptrollerof the Currency, the Federal Reserve Board, the Federalreserve banks, and the Interstate Commerce Commis-sion are hereby authorized, under such conditions asthey may prescribe, to make available to the corpora-tion, in confidence, such reports, records, or other infor-mation as they may have available relating to the con-dition of applicants with respect to whom the corpora-tion has had or contemplates having transactions undereither of such Acts, or relating to individuals, associa-tions, partnerships, corporations, or other obligors whoseobligations are offered to or held by the corporation assecurity for loans under either of such Acts, and tomake, through their examiners or other employees forthe confidential use of the corporation, examinations ofapplicants for loans. Every applicant for a loan undereither of such Acts shall, as a condition precedentthereto, consent to such examination as the corporationmay require for the purposes of either of such Acts andthat reports of examinations by constituted authoritiesmay be furnished by such authorities to the corporationupon request therefor."

SEC. 205. (a) The amount of notes, debentures,bonds, or other such obligations which the Reconstruc-tion Finance Corporation is authorized and empoweredunder section 9 of the Reconstruction Finance Corpora-tion Act to have outstanding at any one time is in-creased to an aggregate of six and three-fifths times itssubscribed capital stock.

(b) The first proviso of section 2 of the Reconstruc-tion Finance Corporation Act is amended by insertingafter "as set out in section 9" the following: "(as inforce prior to the enactment of the Emergency Reliefand Construction Act of 1932)," but the Secretary ofAgriculture is directed to continue making loans tofarmers under the provisions of such section 2.

SEC. 206. The Reconstruction Finance Corporationis authorized and empowered to make loans under theReconstruction Finance Corporation Act to financialinstitutions, corporations, railroads, and other classesof borrowers specified in section 5 of such Act, organizedunder the laws of the District of Columbia, Alaska,Hawaii, and Puerto Rico. As used in this title and insection 15 of the Reconstruction Finance CorporationAct the term "Sta te" includes the District of Columbia,Alaska, Hawaii, and Puerto Rico.



SEC. 207. No loan or advance shall be approvedunder this section or under the Reconstruction FinanceCorporation Act, directly or indirectly, to any financialinstitution any officer or director of which is a memberof the board of directors of the Reconstruction FinanceCorporation or has been such a member within thetwelve months preceding the approval of the loan oradvance.

SEC. 208. (a) The first sentence of section 3 of theReconstruction Finance Corporation Act is amended,effective at the expiration of ten days after the dateof enactment of this Act, to read as follows: "Themanagement of the corporation shall be vested in aboard of directors consisting of the Secretary of theTreasury (or, in his absence, the Under Secretary of theTreasury), who shall be a member ex officio, and sixother persons appointed by the Presidenc of theUnited States by and with the advice and consent ofthe Senate."

(b) Nothing in this section shall be construed toaffect in any manner the terms of office of the appointedmembers of the board of directors of the ReconstructionFinance Corporation, nor to require their reappoint-ment.

SEC. 209. Section 9 of the Reconstruction FinanceCorporation Act is hereby amended by adding at theend thereof the following:

" The Secretary of the Treasury, at the request of theReconstruction Finance Corporation, is authorized tomarket for the corporacion its notes, debentures, bonds,and other such obligations, using therefor all the facili-ties of the Treasury Department now authorized bylaw for the marketing of obligations of the UnitedStates. The proceeds of the obligations of the corpora-tion so marketed shall be deposited in the same manneras proceeds derived from the sale of obligations of theUnited States, and the amount thereof shall be creditedto the corporation on the books of the Treasury."

SEC. 210. Section 13 of the Federal Reserve Act, asamended, is further amended by adding after the secondparagraph thereof the following new paragraph:

"In unusual and exigent circumstances, the FederalReserve Board, by the affirmative vote of not lessthan five members, may authorize any Federal reservebank, during such periods as the said board may deter-mine, at rates established in accordance with the pro-visions of section 14, subdivision (d), of this Act, todiscount for any individual, partnership, or corpora-tion, notes, drafts, and bills of exchange of the kindsand maturities made eligible for discount for memberbanks under other provisions of this Act when suchnotes, draft, and bills of exchange are indorsed andotherwise secured to the satisfaction of the Federalreserve bank: Provided, That before discounting anysuch note, draft, or bill of exchange for an individualor a partnership or corporation the Federal reservebank shall obtain evidence that such individual,partnership, or corporation is unable to secure adequatecredit accommodations from other banking institutions.All such discounts for individuals, partnerships, orcorporations shall be subject to such limitations, restric-tions, and regulations as the Federal Reserve Boardmay prescribe."

SEC. 211. The first paragraph of section 5 of theReconstruction Finance Corporation Act is herebyamended to read as follows:

" S E C . 5. To aid in financing agriculture, com-merce, and industry, including facilitating the exporta-tion of agricultural and other products the corporationis authorized and empowered to make loans, upon suchterms and conditions not inconsistent with this Actas it may determine, to any bank, savings bank, trustcompany, building and loan association, insurance

company, mortgage loan company, credit union,Federal land bank, joint-stock land bank, Federalintermediate credit bank, agricultural credit corpora-tion, livestock credit corporation, organized under thelaws of any State or of the United States, includingloans secured by the assets of any bank or savings bankthat is closed, or in process of liquidation to aid in thereorganization or liquidation of such banks, upon appli-cation of the receiver or liquidating agent of such bankand any receiver of any national bank is herebyauthorized to contract for such loans and to pledgeany assets of the bank for securing the same: Provided,That not more than $200,000,000 shall be used for therelief of banks (including savings banks) that are closedor in the process of liquidation."

TITLE III PUBLIC WORKS

SEC. 301. (a) For the purpose of providing for emerg-ency construction of certain authorized public workswith a view to increasing employment and carryingout the policy declared in the Employment Stabiliza-tion Act of 1931, there is hereby appropriated, out ofany money in the Treasury not otherwise appropriatedthe sum of $322,224,000, which shall be allocated asfollows:

(1) For expenditure in emergency construction onthe Federal-aid highway system, $120,000,000. Suchsum shall be apportioned by the Secretary of Agricul-ture to the several States by the method provided insection 21 of the Federal Highway Act, as amendedand supplemented (U. S. C , title 23, sec. 21). m Theamounts apportioned to the States shall be availableas a temporary advance of funds to meet the provisionsof such Act as to State funds. The amount appor-tioned to any State under this paragraph may be usedto match the regular annual Federal-aid apportion-ments made to such State (including the one for thefiscal year ending June 30, 1933), and when so usedsuch amount shall be available for expenditure in pay-ing the share of such State in the cost of Federal-aidprojects. No amounts apportioned under this para-graph shall be advanced except for work on the Federal-aid highway system performed before July 1, 1933:Provided, That the amounts so advanced shall be reim-bursed to the Federal Government over a period often years, commencing with the fiscal year 1938, bymaking annual deductions from regular apportionmentsmade from future authorizations for carrying out theprovisions of such Act, as amended and supplemented:Provided further, That all contracts involving the^ ex-penditure of such amounts shall contain provisionsestablishing minimum rates of wages, to be predeter-mined by the State highway department, which con-tractors shall pay to skilled and unskilled labor, andsuch minimum rates shall be stated in the invitationfor bids and shall be included in proposals or bids forthe work: And provided further, That in the expenditureof such amounts, the limitations in the Federal High-way Act, as amended and supplemented^ upon high-way construction, reconstruction, and bridges withinmunicipalities and upon payments per mile which maybe made from Federal funds, shall not apply. As usedin this paragraph, the term "Sta te" includes the Ter-ritory of Hawaii. The term "highway," as defined inthe Federal Highway Act, approved November 9, 1921,as amended and supplemented, for the purposes ofthis paragraph only, shall be deemed to include suchmain State parkways as may be designated by the Stateand approved by the Secretary of Agriculture as partof the Federal-aid highway system.

(2) For expenditure in emergency construction dur-ing the fiscal year ending June 30/ 1933, $16,000,000,



as follows: (A) For the construction and improvementof national-forest highways, $5,000,000; (B) for theconstruction and maintenance of roads, trails, bridges,fire lanes, and so forth, including the same objects spe-cified in the paragraph commencing with the words"Improvement of the national forests" under theheading "National Forest Administration" in theAgricultural Appropriation Act for the fiscal year end-ing June 30, 1932, approved February 23, 1931 (46Stat. 1242), $5,000,000; (C) for the construction, recon-struction, and improvement of roads and trails, inclu-sive of necessary bridges, in the national parks andnational monuments under the jurisdiction of theDepartment of the Interior, including areas to beestablished as national parks authorized under the Actof May 22, 1926 (U. S. C , Supp. V, title 16, sees. 403to 403c), and under the Act of May 25, 1926 (U. S. C ,Supp. V, title 16, sees. 404 to 404c), and national parkand monument approach roads authorized by the Actof January 31, 1931 (46 Stat. 1053), as amended, orany one section of such roads of not less than eightmiles, which crosses lands wholly or to the extent of 90per centum owned by the Government of the UnitedStates, $3,000,000; (D) for construction and improve-ment of Indian reservation roads under the provisionsof the Act approved May 26, 1928 (U. S. C , Supp. V,title 25, sec. 318a), $1,000,000; and (E) for the survey,construction, reconstruction, and maintenance of mainroads through unappropriated or unreserved publiclands, nontaxable Indian lands, or other Federal reser-vations other than the forest reservations, under theprovisions of section 3 of the Federal Highway Act, asamended and supplemented (U. S. C , Supp. V, title23, sees. 3 and 3a), $2,000,000. The Secretary ofAgriculture and the Secretary of the Interior, respect-ively, are authorized to make rules and regulations forcarrying out the foregoing provisions of this sectionwith a view to providing the maximum employment oflocal labor consistent with reasonable economy ofconstruction.

(3) For the prosecution of river and harbor projectsheretofore authorized, $30,000,000.

(4) For the prosecution of flood-control projectsheretofore authorized, $15,500,000.

(5) For the continuation of construction of theHoover Dam and incidental works, as authorized bythe Boulder Canyon Project Act, approved December21, 1928 (U. S. C , Supp. V, title 43, ch. 12A), $10,-000,000.

(6) For expenditure by the Department of Com-merce for air-navigation facilities, including equip-ment, $500,000.

(7) For constructing or purchasing and equippinglighthouse tenders and light vessels for the LighthouseService as may be specifically approved by the Secre-tary of Commerce, $950,000, and for establishing andimproving aids to navigation and other works as maybe specifically approved by the Secretary of Commerce,$2,860,000.

(8) For the engineering work of the Coast and Geo-detic Survey, Department of Commerce, heretoforeauthorized, $1,250,000.

(9) For the construction of projects included in thereport of the Federal Employment StabilizationBoard, laid before the Senate January 25, 1932, whichhave heretofore been authorized or which do notrequire specific authorization, under the Bureau ofYards and Docks, Navy Department, $10,000,000, ofwhich not to exceed $300,000 shall be available for theemployment of classified personal services in the Bureauof Yards and Docks and in the field service to be en-gaged upon such work and to be in addition to em-ployees otherwise provided for.

(10) For emergency construction of public buildingprojects outside the District of Columbia (includingthe acquisition, where necessary, by purchase, condem-nation or otherwise, of sites and additional land forsuch buildings, the demolition of old buildings wherenecessary, and the construction, remodeling, or exten-sion of buildings), such projects to be selected by theSecretary of the Treasury and the Postmaster Generalfrom the public building projects specified in HouseDocument Numbered 788, Seventy-first Congress,third session, $100,000,000. Such projects shall becarried out within the limits of cost specified in suchdocument (except as modified by law), and in selectingsuch projects preference shall be given to places whereGovernment facilities are housed in rented buildingsunder leases which will expire on or before July 1, 1934,or which may be terminated on or prior to that date bythe Government.

(11) For the construction and installation at mili-tary posLs of such buildings and utilities and appur-tenances thereto as may be necessary, $15,164,000, asfollows:

Albrook Field, Canal Zone: Quartermaster mainte-nance building, $20,000; post exchange, theater, andgymnasium, completion of, $42,000.

Barksdale Field, Louisiana: Noncommissioned offi-cers' quarters, $252,000; officers' quarters, $609,000;barracks, $474,000; hospital, completion of, $225,000;garage, completion of, $30,000; quartermaster ware-house, completion of, $15,000.

William Beaumont General Hospital, Texas: Non-commissioned officers' quarters, $7,000; warehouse,$15,000.

Fort Benning, Georgia: Barracks, $650,000.Fort Bliss, Texas: Noncommissioned officers' quar-

ters, $50,000; officers' quarters, $150,000.Boiling Field, District of Columbia: Noncommis-

sioned officers' quarters, $54,000; dispensary, comple-tion of, $30,000; post exchange, theater, and gymna-sium, completion of, $45,000; officers' mess, $50,000;enlargement of central heating plant to provide forquarters area, $95,000.

Fort Bragg, North Carolina: Barracks, completionof, $40,000; noncommissioned officers' quarters,$160,000.

Carlisle Barracks, Pennsylvania: Heating plant,$200,000.

Chanute Field, Illinois: Noncommissioned officers'quarters, $137,000; central heating plant for technicaland quarters area, $200,000.

Camp Devens, Massachusetts: Roads and sidewalks,$75,000; service club, $30,000; post exchange andgymnasium, $50,000.

Fort Douglas, Utah: Noncommissioned officers'quarters, $15,000.

Dryden, Texas: Barracks, $20,000.Duncan Field, Texas: Quartermaster warehouse,

$40,000; quartermaster maintenance building, $20,000;garage, $40,000; fire and guard house, $25,000.

Fort Du Pont, Delaware: Noncommissioned officers'quarters, $60,000.

Edgewood Arsenal, Maryland: Noncommissionedofficers' quarters, $70,000.

Fitzsimons General Hospital, Colorado: Gymnasium,recreation, and social hall, $150,000.

Hamilton Field, California: Officers' quarters,$215,000; noncommissioned officers' quarters, $120,000.

Fort Hamilton, New York: Noncommissioned offi-cers' quarters, $100,000.

Fort Benjamin Harrison, Indiana: Noncommissionedofficers' quarters, $120,000.

Hensley Field, Texas: Noncommissioned officers'quarters, $8,000; officers' quarters, $30,000; roads,



utilities, and improvement of flying field, $25,000;replacement of pumping plant, $3,000; sewage-disposalplant, $3,000.

Holabird Quartermaster Depot, Maryland: Hospital,$120,000.

Fort Sam Houston, Texas: Noncommissioned offi-cers' quarters, $150,000; officers' quarters, $350,000.

Fort Howard, Maryland: Hospital, $150,000.Fort Hoyle, Maryland: Noncommissioned officers'

quarters, $70,000.Fort Humphreys, Virginia: Officers' quarters,

$150,000.Fort Huachuca, Arizona: Post exchange, gymna-

sium, and service club, $100,000.Fort Jay, New York: Noncommissioned officers'

quarters, $130,000; barracks, completion of, $70,000;officers' quarters, $125,000; nurses' quarters, com-pletion of, $35,000.

Jefferson Barracks, Missouri: Noncommissionedofficers' quarters, $65,000; additions to kitchens andmess halls, $55,000.

Camp Knox, Kentucky: Hospital, $200,000.Langley Field, Virginia: Central heating plant for

quarters area, $60,000; quartermaster maintenancebuilding, $20,000; fire house, $20,000; barracks,medical detachment, $30,000; garage, completion of,$15,000; magazine, completion of, $10,000.

Fort Lawton, Washington: Noncommissioned offi-cers' quarters, $30,000.

Fort Leaven worth, Kansas: Nurses' quarters,$60,000.

Letterman General Hospital, California: Two wards,$150,000.

Fort Lewis, Washington: Barracks, completion of,$30,000; water main, $30,000; noncommissioned offi-cers' quarters, $75,000; officers' quarters, $65,000.

Fort Logan, Colorado: Noncommissioned officers'quarters, $53,000.

Fort McClellan, Alabama: Headquarters, $50,000;recreation hall, $35,000; gymnasium, $45,000.

Fort McPherson, Georgia: Nurses' quarters, $70,000;contagious ward for hospital, $70,000.

Maxwell Field, Alabama: Officers' quarters, $940,000;officers' mess, $55,000.

March Field, California: Barracks for medical de-tachment, $25,000; contagious ward for hospital,$12,000; bakery, $15,000; laundry, $60,000; enlistedmen's service club, $50,000; officers' mess, $50,000;theater, $40,000.

Fort Mason, California: Officers' quarters, $110,000.Fort Meade, South Dakota: Riding hall, $25,000.Fort George G. Meade, Maryland: Noncommis-

sioned officers' quarters, $150,000; officers' quarters,$50,000.

Mitchel Field, New York: Noncommissioned officers'quarters, $118,000; bakery, $15,000; incinerator,$10,000; enlisted men's service club, $50,000; theater,$40,000; sewage-disposal plant, $40,000; fence, $31,000;quartermaster gasoline storage, $3,000; magazine,$15,000; officers' mess, $50,000; coal storage and han-dling system, $70,000; roads, walks, and surface-drainage system, $86,000.

Fort Monmouth, New Jersey: Addition to hospital,$75,000; noncommissioned officers' quarters, $170,000;band barracks, $35,000.

Fort Myer, Virginia: Barracks, $100,000.Fort Oglethorpe, Georgia: Noncommissioned officers'

quarters, $120,000.Fort Ontario, New York: Noncommissioned officers'

quarters, $50,000.Plattsburg Barracks, New York: Additions to bar-

racks, $25,000; barracks, $255,000.

Pope Field, North Carolina, for the Air Corps troops:Barracks, $140,000; noncommissioned officers' quarters,$84,000; officers' quarters, $140,000.

Post Field, Oklahoma, for Air Corps troops: Bar-racks,, $140,000; noncommissioned officers' quarters,$84,000; officers' quarters, $140,000.

Presidio of San Francisco, California: Noncommis-sioned officers' quarters, $60,000; addition to head-quarters, $50,000.

Randolph Field, Texas: Barracks, completion of,$56,000; gymnasium, completion of, $70,000; roads andutilities, $243,000; completion of chapel and school,$50,000.

Raritan Arsenal, New Jersey: Noncommissioned offi-cers' quarters, $75,000.

Walter Reed General Hospital, District of Columbia:Noncommissioned officers' quarters, $120,000; additionto nurses' quarters, $300,000.

Rock Island Arsenal, Illinois: Noncommissioned offi-cers' quarters, $15,000.

Rockwell Field, California: Noncommissioned offi-cers' quarters, $234,000; officers' quarters, $266,000.

Fort Winfield Scott, California: Noncommissionedofficers' quarters, $140,000.

Self ridge Field, Michigan: Gymnasium and theater,$80,000; garage, $40,000; quartermaster maintenancebuilding, $20,000; post exchange, $45,000; officers' mess,$60,000; enlisted men's service club, $50,000; bakery,$15,000; roads and utilities, $75,000.

Fort Sill, Oklahoma: Barracks, $875,000; noncom-missioned officers' quarters, $72,000; officers' quarters,$75,000; gun sheds, $48,000; stables, $30,000; vehicleshed, $10,000.

Fort Snelling, Minnesota: Quartermaster warehouse,$65,000; barracks, medical detachment, $40,000.

Fort Totten, New York: Noncommissioned officers'quarters, $30,000.

Fort Wadsworth, New York: Officers' quarters,$75,000.

Fort Francis E. Warren, Wyoming: Noncommis-sioned officers' quarters, $120,000.

West Point, New York: For addition to hospital,$250,000; barracks for service detachment, $250,000.

Fort George Wright, Washington: Noncommissionedofficers' quarters, $60,000.

(b) No part of the sum appropriated by this section,except the amount for expenditure under paragraph (1)or (2) of subsection (a), shall be expended if the Secre-tary of the Treasury certifies to the President that theamount necessary for such expenditure is not availableand can not be obtained upon reasonable terms.

SEC. 302. There is hereby authorized to be appropri-ated not to exceed $7,436,000, to be expended for theconstruction and installation at military posts, and atairports and landing fields, of such technical buildingsand utilities and appurtenances thereto as may benecessary, as follows:

Albrook Field, Canal Zone: Technical buildings andinstallations, completion of, $293,000; gasoline-storagesystem, completion of, $25,000.

Barksdale Field, Louisiana: Hangars, $350,000;headquarters and operations buildings, completion of,$89,200; gasoline-storage system, completion of,$20,000; paved aprons, $100,000.

Fort Benning, Georgia: Hangar, combination,$88,000; gasoline-storage system, $10,000; improve-ment of landing field and building area, $25,000; heat-ing plant, $20,000; paved aprons, $20,000.

Benton Field, Alameda, California: Completion ofshops, including assembly and test hangars, dopestorage, heating and engine test block, $605,500; depotwarehouse, $500,000; administration building, $80,000;



railroad spur, $8,000; quartermaster warehouse, main-tenance and salvage building, $35,000; garage, $48,000;fire and guard house, $30,000; pier, $125,000; paint,oil, and dope storage and oil reclamation, $35,000;gasoline-storage system, $20,000; paved aprons,$80,000.

Fort Bliss, Texas: Operations building, $10,000.Boiling Field, District of Columbia: Paved aprons,

completion of, $22,800; heating plant for technicalarea, completion of, $78,000; field shops, completionof, $6,000; improvement of landing field and buildingarea, $615,000.

Chanute Field, Illinois: Hangars, $170,000; pavedaprons, $30,000; improvement of landing field andtechnical area, $15,000; enlargement of central heat-ing plant and steam lines, $185,000.

Dryden, Texas: Paved aprons and hangar floor,$15,000.

Duncan Field, Texas: Depot administration build-ing, $60,000; gasoline-storage system, completion of,$15,000.

Hatbox Field, Muskogee, Oklahoma: Roofing andsidewalls for hangar, and paved aprons, $15,000.

Hamilton Field, California: Headquarters and opera-tions building, to complete, $35,000; improvement oflanding field and building area, $120,000.

Langley Field, Virginia: Remodeling two hangarsinto shops, and for ceilings in and additions to hangars,$91,000; gasoline-storage system, completion of, $21,-000; bomb storage, $19,000; improvement of landingfield and building area, $25,000; machine-gun range,$6,000.

Luke Field, Hawaiian Department: Air depot,plane overhaul and assembly, $200,000.

March Field, California: Gasoline-storage system,completion of, $10,000; aircraft-bomb storage, $5,000.

Maxwell Field, Alabama: Squadron officers' schooland/or additions to school building, $150,000; gasoline-storage system, $10,200; improvement of landing field,$100,000; camera obscura, $4,000; bomb storage, $13,-000; machine-gun and bombing range, $6,000.

Mitchel Field, New York: Improvement of landingfield, $80,000; gasoline-storage system, completion of,$5,000; bomb storage, $13,000; machine-gun range,$2,000.

Panama Canal Zone: Improvement of emergencylanding fields at Gamboa Reach and Camp Gaillard,$20,000.

Patterson Field, Ohio: Hangars, headquarters andoperations, and heating plant, completion of, $251,300;improvement of landing field and building area, $5,000;gasoline-storage system, completion of, $10,000.

Pope Field, North Carolina: Hangar—balloon-dis-mantle, transfer, and reerection of, $110,000; pavedaprons, $15,000; paint, oil, and dope storage, $5,000.

Post Field, Oklahoma: Hangar—balloon-dismantle,transfer, and reerection of, $110,000; paved aprons,$15,000.

Randolph Field, Texas: Engine-test stands andbuilding, $40,000; oil storage, $15,000; gasoline-storagesystem, completion of, $10,000; aerial target range,$20,000.

Rockwell Field, California: Hangars, $576,000; AirCorps warehouse, $80,000; operations building, $20,000;remodeling a permanent building for radio, parachute,and armament building, $20,000; administration build-ing, $80,000; photographic building, $36,000; paint, oil,and dope storage, $15,000; gasoline-storage system,$30,000; paved aprons, $95,000; central heating plants,$100,000; improvement of landing field and technicalbuilding area, $100,000; camera obscura, $5,000; bombstorage, $15,000.

Schoen Field, Indiana: Grading landing field, $5,000.Scott Field, Illinois: Hangar, $90,000; headquarters

and operations buildings, $80,000; barracks, $271,000;radio building, $10,000; photo building, $36,000; gasplant and chemical storage, $50,000; central heatingplants, $145,000; gasoline-storage system, $10,000;paved aprons, $40,000; improvement of landing fieldand building area, $50,000; machine-gun butts, $3,000.

Self ridge Field, Michigan: Gasoline-storage system,completion of, $10,000.

Wheeler Field, Hawaiian Department: Gasoline-storage system, completion of, $31,000; paved aprons,$38,000.

SEC. 303. No money shall be available for expendi-ture under this title in connection with a project in theDistrict of Columbia, except as provided in section 301(a) (11) or 302.

SEC. 304. The last paragraph of section 6 of theFederal Highway Act, approved November 9, 1921, asamended and supplemented (U. S. C , title 23, sec. 6),is hereby amended to read as follows:

" Whenever provision has been made by any Statefor the completion and maintenance of 90 per centumof its system of primary or interstate and secondary orintercounty highways equal to 7 per centum of thetotal mileage of such State, as required by this Act,said State through its State highway department, byand with the approval of the Secretary of Agriculture,is hereby authorized to increase the mileage of theprimary or interstate and secondary or intercountysystems by additional mileage equal to not more than1 per centum of said total mileage of such State, andthereafter to make like increases in the mileage of saidsystems whenever provision has been made for thecompletion and maintenance of 90 per centum of themileage of said systems previously authorized inaccordance herewith."

SEC. 305. After the date of the enactment of thisAct, in the acquisition of any land or site for thepurposes of section 301 (a) (10):

(1) The period of solicitation of proposals by publicadvertisement shall be ten days in lieu of twenty days;

(2) In any case in which such site or land is to beacquired by condemnation, the provisions of section355 of the Revised Statutes, as amended, shall notapply; and

(3) Notwithstanding the provisions of section 1 of theAct entitled "An Act to expedite the construction ofpublic buildings and works outside of the District ofColumbia by enabling possession and title of sites to betaken in advance of final judgment in proceedings forthe acquisition thereof under the power of eminentdomain," approved February 26, 1931 (U. S. C ,Supp. V, title 40, sec. 258a), in any case in which anyland or any interest therein is to be acquired by con-demnation, the Secretary of the Treasury, through theAttorney General, may, prior to the institution of con-demnation proceedings, file with the clerk of the dis-trict court of the district in which such land is locateda declaration of taking, containing the matters re-quired by such section to be included in a declarationof taking. The declaration of taking shall be accom-panied by the deposit with such clerk, to the use of theparties who may be found to be entitled thereto, of theamount of the estimated compensation stated in thedeclaration. As soon as practicable after the filing ofsuch declaration of taking, the Secretary of the Treasuryshall cause to be ppsted in a prominent place upon theland a notice reciting (A) that the land or the interesttherein is taken by the United States for public use,(B) that a declaration of taking in respect of such landor interest therein has been filed with the clerk of the



court of the district, and (C) that there has been de-posited with such clerk, to the use of the parties whomay be found to be entitled thereto, the estimated justcompensation for the land or interest therein taken.The Secretary of the Treasury shall give written noticesimilar to the posted notice, by personal service in thecase of actual occupants of the premises or, if withreasonable diligence such personal service can not bemade, he shall send such notice by registered maildirected to the premises, and he shall send notice byregistered mail directed to their last known address inthe case of all parties who the Secretary ascertainshave or may have an interest in such land, and he maygive such additional notice by newspaper publicationor otherwise as he deems necessary. Upon postingnotice on the land, title to the land or interest thereinshall vest in the United States, and the right to justcompensation therefor shall vest in the parties entitledthereto. The Secretary of the Treasury shall causenotice to be personally served upon, or if with reason-able diligence such service can not be made, to be sentby registered mail to actual occupants of the premises,setting a time (not earlier than twenty days after theservice or sending of such notice) at which such partiesshall surrender possession, and at the end of such timethe right to possession shall vest in the United States.The Secretary of the Treasury may designate any per-son to serve any notice under the preceding provisionsof this subsection and such person shall have power toenter upon such land for the purpose of posting noticeor to make personal service of notice. If any suchparty fails or refuses so to surrender possession, uponsummary petition for an order to surrender possessionfiled in such district court by or on behalf of the Secre-tary of the Treasury, the court may, by writ of assis-tance or other process, order the surrender of posses-sion. A petition in condemnation shall be filed in suchdistrict court as soon after the filing of the declarationof taking as practicable. In any such condemnationproceeding, no further declaration of taking shall berequired, and the provisions of section 1 of such Act ofFebruary 26, 1931, authorizing the court to fix thetime when parties in possession shall be required tosurrender possession, shall not apply. If such petitionfor condemnation is not filed within a reasonable timeafter the filing of such declaration of taking, any per-son entitled to just compensation in respect of theproperty so taken shall be entitled to sue the UnitedStates in the court in which such declaration of takingwas filed. The procedure in such suit shall be thesame as in suits against the United States foundedupon contract, except that such suit may be heardeven if the amount of the claim is greater than $10,000and except that the procedure for the ascertainmentof the amount of just compensation shall be the sameas such procedure in condemnation proceedings. Ifthe petition for condemnation is filed prior to the timethe commissioners in condemnation, jurors, or otherpersons charged with the duty of valuing the propertyare empaneled, such suit shall be dismissed, except thatsuch suit and the condemnation proceedings may, inthe discretion of the court, and under rules prescribedby it, be consolidated to such extent as the court maydeem practicable. In any suit authorized to bebrought under this subsection or in any condemnationproceeding involving land acquired in accordance withthis subsection, the court shall enter judgment againstthe United States in favor of the parties entitled for thesum or sums awarded as just compensation, respectively,for the land or interest therein taken for the use of theUnited States and such judgment shall be paid out ofthe sums deposited with the court and such additionalsums as may be awarded shall be paid in the same man-

ner as sums awarded in judgments in cases in which theUnited States has consented to be sued. The pro-visions of such Act of February 26, 1931, except asmodified by this subsection, shall apply to all such suitsor condemnation proceedings. The provisions of thissubsection shall not be construed to be in substitutionfor, but shall be supplemental to, any method of ac-quiring land or interests therein provided in existinglaw.

SEC. 306. In the construction of post offices and ofbuildings for post offices and other offices provided forin section 301 (a) (10), the Secretary of the Treasurywith the cooperation of the Postmaster General mayuse such standard plans (heretofore or hereafter pre-pared) as may be most adaptable to the particularbuilding to be constructed.

SEC. 307. All contracts let for construction projectspursuant to this title shall be subject to the conditionsthat no convict labor shall be directly employed on anysuch project, and that (except in executive, adminis-trative, and supervisory positions), so far as practicable,no individual directly employed on any such projectshall be permitted to work more than thirty hours inany one week, and that in the employment of labor inconnection with any such project, preference shall begiven, where they are qualified, to ex-service men withdependents.

SEC. 308. For each fiscal year beginning with thefiscal year 1934, there is authorized to be appropriated,for the purposes of the sinking fund provided in section6 of the Victory Liberty Loan Act, as amended, inaddition to amounts otherwise appropriated, an amountequal to 2% per centum of the aggregate amount of theexpenditures made, out of appropriations made orauthorized in this title, on or after the date of theenactment of this Act and on or before the last day ofthe fiscal year for which the appropriation is made.

Approved, July 21, 1932.

Federal Home Loan Bank act.

There is published below the text of theFederal Home Loan Bank act, which was signedby the President on July 22, 1932. Section 29of this act authorizes national banks, for aperiod of three years from the date of the enact-ment of the act, to issue circulating notesagainst any outstanding bonds of the UnitedStates bearing interest at a rate not exceeding3% per cent per annum.


[H. R. 12280]

AN ACT To create Federal Home Loan Banks, to provide for thesupervision thereof, and for other purposes.

Be it enacted by the Senate and House of Representa-tives of the United States of America in Congress assem-bled, That this Act may be cited as the " Federal HomeLoan Bank Act."

DEFINITIONS

SEC. 2. As used in this Act—(1) The term "board" means the Federal Home

Loan Bank Board.(2) The term "Federal Home Loan Bank" means a

bank established by the board under authority of thisAct.



(3) The term "Sta te" includes the District ofColumbia, Puerto Rico, the Virgin Islands of the UnitedStates, and the Territories of Alaska and Hawaii.

(4) The term "member" (except when used inreference to a member of the board) means any insti-tution which has subscribed for the stock of a FederalHome Loan Bank.

(5) The term "home mortgage loan" means a loanmade by a member or a nonmember borrower uponthe security of a home mortgage.

(6) The term "home mortgage" means a first mort-gage upon real estate, in fee simple, or leasehold undera renewable lease for not less than ninety-nine years,upon which there is located a dwelling for not morethan three families, and shall include, in addition tofirst mortgages, such classes of first liens as are com-monly given to secure advances on real estate byinstitutions authorized under this Act to becomemembers, under the laws of the State in which the realestate is located, together with the credit instruments,if any, secured thereby.

(7) The term "unpaid principal," when used inrespect of a loan secured by a home mortgage meansthe principal thereof less the sum of (1) paymentsmade on such principal, and (2) in cases where sharesor stock are pledged as security for the loan, the pay-ments made on such shares or stock plus earnings ordividends apportioned or credited thereon.

(8) An "amortized" or "installment" home mort-gage loan shall, for the purposes of this Act, be a homemortgage loan to be repaid or liquidated in not lessthan eight j^ears by means of regular weekly, monthly,or quarterly payments made directly in reduction ofthe debt or upon stock or shares pledged as collateralfor the repayment of such loan.

(9) The term "nonmember borrower" includes aninstitution authorized to secure advances from aFederal Home Loan Bank under the provisions ofsection 6 (e).

FEDERAL HOME LOAN BANKS

SEC. 3. As soon as practicable the board shall dividethe continental United States, Puerto Rico, the VirginIslands, and the Territories of Alaska and Hawaii intonot less than eight nor more than twelve districts.Such districts shall be apportioned with due regard tothe convenience and customary course of business of theinstitutions eligible to and likely to subscribe for stockof a Federal Home Loan Bank to be formed under thisAct, but no such district shall contain a fractionalpart of any State. The districts thus created may bereadjusted and ntw districts may from time to time becreated by the board, not to exceed twelve in all. Suchdistricts shall be known as Federal Home Loan Bankdistricts and may be designated by number. As soonas practicable the board shall establish, in each district,a Federal Home Loan Bank at such city as may bedesignated by the board. Its title shall include thename of the city at which it is established.

ELIGIBILITY OF MEMBERS AND NONMEMBER BORROWERS

SEC. 4. (a) Any building and loan association, sav-ings and loan association, cooperative bank, homesteadassociation, insurance company, or savings bank, shallbe eligible to become a member of, or a nonmemberborrower of, a Federal Home Loan Bank if such institu-tion (1) is duly organized under the laws of any State orof the United States; (2) is subject to inspection andregulation under the banking laws, or under similarlaws, of the State or of the United States; and (3) makessuch home mortgage loans as, in the judgment of the

board, are long-term loans (and in the case of a savingsbank, if, in the judgment of the board, its time deposits,as defined in section 19 of the Federal Reserve Act,warrant its making such loans). No institution shallbe eligible to become a member of, or a nonmemberborrower of, a Federal Home Loan Bank if, in thejudgment of the board, its financial condition is suchthat advances may not safely be made to such institu-tion or the character of its management or its home-financing policy is inconsistent with sound and econom-ical home financing, or with the purposes of this Act.

(b) An institution eligible to become a member or anonmember borrower under this section may becomea member only of, or secure advances from, the FederalHome Loan Bank of the district in which is located theinstitution's principal place of business, or of the bankof a district adjoining such district, if demanded byconvenience and then only with the approval of theboard.

(c) Notwithstanding the provisions of clause (2) ofsubsection (a) of this section requiring inspection andregulation under law as a condition with respect toeligibility for membership, any building and loan asso-ciation which would be eligible to become a member ofa Federal Home Loan Bank except for the fact that itis not subject to inspection and regulation under thebanking laws or similar laws of the State in whichsuch association is organized shall, upon subjectingitself to such inspection and regulation as the boardshall prescribe, be eligible to become a member.

(d) Any home owner who comes within the limitsof this Act and who is unable to obtain mortgagemoney from any other source may obtain same fromany bank organized under this Act: Provided, Thatthis subsection shall not be effective when the FederalGovernment has had its stock retired.

SEC. 5. No institution shall be admitted to or re-tained in membership, or granted the privileges ofnonmember borrowers, if the combined total of theamounts paid to it for interest, commission, bonus,discount, premium, and other similar charges, less aproper deduction for all dividends, refunds, and cashcredits of all kinds, creates an actual net cost to thehome owner in excess of the maximum legal rate ofinterest or, in case there is a lawful contract rate ofinterest applicable to such transactions, in excess ofsuch rate (regardless of any exemption from usurylaws), or, in case there is no legal rate of interest orlawful contract rate of interest applicable to suchtransactions, in excess of 8 per centum per annum inthe State where such property is located. This sectionapplies only to home mortgage loans made after theenactment of this Act.

CAPITAL OF FEDERAL HOME LOAN BANKS AND SUBSCRIP-TIONS THERETO

SEC. 6. (a) As soon as practicable after the enact-ment of this Act, the board, with the approval of theSecretary of the Treasury, shall determine the mini-mum capital of each Federal Home Loan Bank whichshall be not less than $5,000,000. The board shall,as soon as practicable thereafter, open books in eachdistrict established under section 3 for subscription tothe capital stock of the Federal Home Loan Bank ofthe district.

(b) The capital stock of each Federal Home LoanBank shall be divided into shares of a par value of $100each. The minimum capital stock shall be issued atpar. Stock issued thereafter shall be issued at suchprice not less than par as may be fixed by the board.

(c) The original stock subscription for each institu-tion eligible to become a member under section 4 shall



be an amount equal to 1 per centum of the aggregateof the unpaid principal of the subscriber's homemortgage loans, but not less than $1,500. The boardshall from time to time adjust the amount of stockheld by each member so that, as nearly as possible,such member shall at all times have invested in thestock of the Federal Home Loan Eank at least anamount calculated in the manner provided in the pre-ceding sentence (but not less than $1,500). If theboard finds that the investment of any member instock is greater than that required under this section,upon application of such member, the bank shall paysuch member for each share of stock in excess of theamount so required an amount equal to the value ofsuch stock, or, at the election of the bank, the whole orany part of the payments which would be so made shallbe credited upon the indebtedness of the member tothe bank In either such event, stock equal in valueto the amount of the payment or credit, or both, asthe case may be, shall be surrendered and canceled.No share of stock shall be surrendered and canceled ifthe effect of such surrender and cancellation would beto violate the provisions of section 10 (c) requiring theamount of stock held by such member to equal at leastone-twelfth of the outstanding advances to suchmember.

(d) Stock subscriptions other than by the UnitedStates shall be paid for in cash, and shall be paid for atthe time of application therefor, or, at the election ofthe subscriber, in installments, but not less than one-fourth of the total amount payable shall be paid at thetime of filing application, and a further sum of not lessthan one-fourth of such total shall have been paid atthe end of each succeeding period of four months.

(e) If the law of the State under which an institutiondescribed in section 4 operates does not permit suchinstitution to subscribe for stock in the Federal HomeLoan Bank but if such institution has the power toborrow money and give security therefor, the boardmay permit such institution to obtain advances on thesame terms and conditions and subject to the samelimitations as members (except that such institutionshall not be required, during the period during whichadvances may be made under this subsection, to sub-scribe for stock in the Federal Home Loan Bank or todeposit such stock as collateral security as required in•section 10), but such institution shall be required tokeep on deposit such security, in addition to home mort-gages, for such advances, as the board shall determine,which shall equal in value 1 per centum of the aggre-gate unpaid principal of such institution's home mort-gage loans (but not less than $1,500). No advance toany such institution shall be made under authority ofthis subsecoion after the State in which the institutionis organized enacts legislation authorizing such institu-tion to subscribe for Federal Home Loan Bank stock orafter the expiration of the next regular session of thelegislature of such State begun after the enactment ofthis Act, whichever is earlier. If, at the end of suchtime, such institution is not authorized to subscribe forstock, the bank shall proceed to liquidate the indebted-ness of such institution to the bank and to terminateits relations with such institution. No advance shallbe made under authority of this subsection which ma-tures more than one year after the advance is made,but the bank may renew any such advance for yearlyperiods, or less, thereafter. The maturity of no ad-vance authorized under this subsection shall be laterthan the time of the enactment of legislation author-izing such institution to become a member or the ex-piration of such session of the legislature of the State,-whichever is earlier.

(f) The Secretary of the Treasury shall subscribe, onbehalf of the United States, for such part of the mini-mum capital of each Federal Home Loan Bank as is notsubscribed for by members under subsection (c) of thissection within thirty days after books have been openedfor stock subscriptions as provided in subsection (a).Payments for stock subscriptions by the Secretary ofthe Treasury shall be subject to call in whole or in partby the board, with the approval of the Secretary of theTreasury, at such time or times as may be deemed ad-visable. Each Federal Home Loan Bank receivingsuch payments shall issue receipts therefor to the Secre-tary of the Treasury, and such receipts shall be evidenceof the stock ownership of the United States. The ag-gregate amount expended by the United States for thepurchase of stock under this Act shall not exceed$125,000,000. The Reconstruction Finance Corpora-tion Act, approved January 22, 1932, is amended byadding at the end of section 2 thereof the following newparagraph:

" In order to enable the Secretary of the Treasuryto make payments upon stock of Federal Home LoanBanks subscribed for by him in accordance with theFederal Home Loan Bank Act, the sum of $125,000,000,or so much thereof as may be necessary for such pur-pose, is hereby allocated and made available to theSecretary of the Treasury out of the capital of thecorporation and/or the proceeds of notes, debentures,bonds, and other obligations issued by the corporation.For the purposes of this paragraph, the corporationshall issue such notes, bonds, debentures, and otherobligations as may be necessary."

(g) After the amount of capital of a Federal HomeLoan Bank paid in by members equals the amountpaid in by the Secretary of the Treasury under sub-section (f), such bank shall apply annually to the pay-ment and retirement of the shares of the capital stockheld by the United States, 50 per centum of all sumsthereafter paid in as capital until all such capital stockheld by the United States is retired at par. Stock heldby the United States may at any time, in the discre-tion of the Federal Home Loan Bank, and with theapproval of the board, be paid off at par and retiredin whole or in part; and the board may at any timerequire such stock to be paid off at par and retired inwhole or in part if in the opinion of the board theFederal Home Loan Bank has resources available there-for: Provided, That accumulated dividends, as providedin subsection (k), have been paid.

(h) Stock subscribed for otherwise than by theUnited States, and the right to the proceeds thereof,shall not be transferred or hypothecated except ashereinafter provided and the certificates therefor shallso state.

(i) Any member may withdraw from membershipin a Federal Home Loan Bank six months after filingwith the board written notice of intention so to do,and the board may, after hearing, remove any mem-ber from membership, or deprive any nonmember bor-rower of the privilege of obtaining further advances,if, in the opinion of the board, such member or non-member borrower has failed to comply with any pro-vision of this Act or the regulations of the board madepursuant thereto or if, in the opinion of the board,such member or nonmember borrower is insolvent. Inany such case, the indebtedness of such member ornonmember borrower to the Federal Home Loan Bankshall be liquidated, and the capital stock in the Fed-eral Home Loan Bank owned by such member shallbe surrendered and canceled. Upon the liquidation ofsuch indebtedness such member or nonmember bor-rower shall be entitled to the return of its collateral,



and, upon surrender and cancellation of such capitalstock, the member shall receive a sum equal to its cashpaid subscriptions for the capital stock surrendered,except that if at any time the board finds that thepaid-in capital of a Federal Home Loan Bank is or islikely to be impaired as a result of losses in or depre-ciation of the assets held, the Federal Home Loan Bankshall on the order of the board withhold from theamount to be paid in retirement of the stock a prorata share of the amount of such impairment as deter-mined by the board.

(j) A Federal Home Loan Bank may, with the ap-proval of the board, permit the disposal of stock toanother member, or to an institution eligible to becomea member, but only to enable such an institution tobecome a member.

(k) All stock of any Federal Home Loan Bank shallshare in dividend distributions without preference,except that stock subscribed for by the United Statesshall be entitled to dividends at a rate of 2 per centumper annum cumulative from the date of investment butin any case in which the rate of dividend is in excess of2 per centum, the stock subscribed for by the UnitedStates shall be entitled to dividends at a rate not inexcess of that paid on other stock.

MANAGEMENT OF BANKS

SEC. 7. (a) The management of each Federal HomeLoan Bank shall be vested in a board of eleven directors,all of whom shall be citizens of the United States andbona fide residents of the district in which such bank islocated.

(b) Two of such directors shall be appointed by theboard. The terms of such directors shall expire oneyear and two years, respectively, from the end of thecalendar year 1932, and their successors shall be ap-pointed by the board for terms of three years.

(c) Nine of such directors, three of whom shall beknown as class A directors, three of whom shall beknown as class B directors, and three of whom shall beknown as class C directors, shall be first appointed bythe board, and shall serve until the end of the calendaryear 1932. Their successors shall be elected as pro-vided in subsection (d), and of such successors firstelected one of each such class shall serve for one, two,and three years, respectively. Thereafter all such di-rectors shall serve for three years. Directors of classesA, B, and C, whether appointed or elected, shall bechosen from among persons connected with the home-financing business.

(d) The board shall divide all the members of eachFederal Home Loan Bank into three groups which shallbe designated as groups A, B, and C, wiiich groups shallrepresent, respectively, and as fairly as may be, groupA, the large, group B, the medium-sized, and group C,the small members, the size of such members to be de-termined according to the aggregate unpaid principalof the member's home mortgage loans. The boardmay revise the membership of such groups from timeto time. Of the directors elected as hereinafter pro-vided, each class A director shall be an officer or directorof a member in group A, each class B director shall bean officer or director of a member in group B, and eachclass C director shall be an officer or director of a mem-ber in group C. Each member shall be entitled tonominate suitably qualified persons for election asdirectors of the class corresponding to the group towhich such member belongs, and shall cast one vote foreach director in its class. The directors of each classshall be nominated and elected in accordance with suchrules and regulations as may be prescribed by the board.

(e) Any director appointed or elected as provided inthis section to fill a vacancy shall hold office only untilthe expiration of the term of his predecessor.

(f) The board shall designate one of the directors ofeach bank to be chairman, and one to be vice chairman,of the board of directors of such bank.

(g) If at any time when nominations are required,members shall hold less than $1,000,000 of the capitalstock of the Federal Hpme Loan Bank, the board shallappoint a director or directors to fill the place or placesfor which such nominations are required. A directorso appointed shall serve until the expiration of thecalendar year during which he takes office.

(h) Each bank may pay its directors reasonablecompensation for the time required of them, and theirnecessary expenses, in the performance of their duties,in accordance with the resolutions adopted by suchdirectors, subject to the approval of the board.

(i) Such board of directors shall administer theaffairs of the bank fairly and impartially and withoutdiscrimination in favor of or against any member ornonmember borrower, and shall, subject to the pro-visions hereof, extend to each institution authorized tosecure advances such advances as may be made safelyand reasonably with due regard for the claims anddemands of other institutions, and with due regard tothe maintenance of adequate credit standing for theFederal Home Loan Bank and its obligations.

EXAMINATIONS AND STUDIES BY THE BOARD

SEC. 8. The board shall cause to be made from timeto time examinations of the laws of the various Statesof the United States and the regulations and procedurethereunder governing conditions under which institu-tions of the kinds which may become members or non-member borrowers under this Act are permitted to beformed or to do business, or relating to the conveyingor recording of land titles, or to homestead and otherrights, or to the enforcement of the rights of holdersof mortgages on lands securing loans, or otherwise.If any such examination shall indicate, in the opinionof the board, that under the laws of any such State orthe regulations or procedure thereunder there wo aid beinadequate protection to a Federal Home Loan Bankin making or collecting advances under this Act, theboard may withhold or limit the operation of any Fed-eral Home Loan Bank in such State until satisfactoryconditions of law, regulation, or procedure shall beestablished. In any State where State examination ofmembers or nonmember borrowers is deemed inade-quate for the purposes of the Federal Home LoanBanks, the board shall establish such examination, allor part of the cost of which may be considered as partof the cost of making advances in such State. Thebanks and/or the board may make studies of trends ofhome and other property values, methods of appraisals,and other subjects such as they may deem useful forthe general guidance of their policies and operationsand those of institutions authorized to secure advances.

ELIGIBILITY TO SECURE ADVANCES

SEC. 9. Any member or nonmember borrower of aFederal Home Loan Bank shall be entitled to apply inwriting for advances. Such application shall be insuch form as shall be required by the Federal HomeLoan Bank with the approval of the board. Such Fed-eral Home Loan Bank may at its discretion deny anysuch application, or, subject to the approval of theboard, may grant it on such conditions as the FederalHome Loan Bank may prescribe.



ADVANCES TO MEMBERS

SEC. 10. (a) Each Federal Home Loan Bank isauthorized to make advances to members and non-member borrowers, upon the security of home mort-gages, such advances to be made subject to such regu-lations, restrictions, and limitations as the board mayprescribe. Any such advance shall be subject to thefollowing limitations as to amount:

(1) If secured by a home mortgage given in respectof an amortized home mortgage loan which was for anoriginal term of eight years or more, or in cases whereshares of stock, which are pledged as security for suchloan, mature in a period of eight years or more, theadvance may be for an amount not in excess of 60 percentum of the unpaid principal of the home mortgageloan; in no case shall the amount of the advance exceed40 per centum of the value of the real estate securingthe home mortgage loan.

(2) If secured by a home mortgage given in respectof any other home mortgage loan, the advance shallnot be for an amount in excess of 50 per centum of theunpaid principal of the home mortgage loan; in no caseshall the amount of such advance exceed 30 per centumof the value of the real estate securing the home mort-gage loan.

(b) No home mortgage shall be accepted as collateralsecurity for an advance by a Federal Home Loan Bankif, at the time such advance is made (1) the home mort-gage loan secured by it has more than fifteen years torun to maturity, or (2) the value of the real estate withrespect to which the home mortgage is given exceeds$20,000, or (3) is past due more than six months whenpresented. For the purposes of this subsection andsubsection (a) the value of real estate shall be as of thetime the advance is made and shall be established bysuch certification by the borrowing institution, or suchother evidence, as the board may require. For thepurposes of this section, each Federal Home Loan Bankshall have power to make, or to cause or require to bemade, such appraisals and other investigations as itmay deem necessary. No home mortgage otherwiseeligible to be accepted as collateral security for anadvance by a Federal Home Loan Bank shall be ac-cepted if any director, officer, employee, attorney, oragent of the Federal Home Loan Bank or of the bor-rowing institution is personally liable thereon, unlessthe board has specifically approved by formal resolu-tion such acceptance.

(c) Such advances shall be made upon the note orobligation of the member or nonmember borrowersecured as provided in this section, bearing such rateof interest as the board may approve or determine, andthe Federal Home Loan Bank shall have a lien uponand shall hold the stock of such member as furthercollateral security for all indebtedness of the memberto the Federal Home Loan Bank. At no time shall theaggregate outstanding advances made by any FederalHome Loan Bank to any member exceed twelve timesthe amounts paid in by such member for outstandingcapital stock held by it, or made to a nonmemberborrower exceed twelve times the value of the securityrequired to be deposited under section 6 (e).

(d) The institution applying for an advance shallenter into a primary and unconditional obligation topay off all advances, together with interest and anyunpaid costs and expenses in connection therewithaccording to the terms under which they were made,in such form as shall meet the requirements of thebank and the approval of the board. The bank shallreserve the right to require at any time, when deemednecessary for its protection, deposits of additional col-lateral security or substitutions of security by the

borrowing institution, and each borrowing institutionshall assign additional or substituted security when andas so required. Subject to the approval of the board,any Federal Home Loan Bank shall have power to sellto any other Federal Home Loan Bank, with or with-out recourse, any advance made under the provisionsof this Act, or to allow to such bank a participationtherein, and any other Federal Home Loan Bank shallhave power to purchase such advance or to accept aparticipation therein, together with an appropriateassignment of security therefor.

GENERAL POWERS AND DUTIES OF BANKS

SEC. 11. (a) Each Federal Home Loan Bank shallhave power, subject to the approval of the board, (1)to borrow money, to give security therefor, and to payinterest thereon, and (2) to issue bonds and debentureshaving such maturities as may be determined by theboard, secured by the transfer of eligible obligations ofborrowing institutions on advances made by the bankto borrowing institutions and by the deposit of homemortgages.

(b) The board shall prescribe rules and regulationsgoverning the assignment, deposit, custody, substitu-tion, and release of the obligations of borrowing institu-tions to the bank which are transferred and of thehome mortgages securing such bonds and debentures,the forms and terms of such bonds and debentures,and the conditions under which they may be issuedand retired, including any option with respect to pay-ment and retirement thereof in advance of maturity,and such regulations shall provide for the deposit intrust, under such terms and conditions as it may deemadvisable, of the home mortgages securing such bondsand debentures. For the purposes of this section theboard is authorized to appoint, and fix the compensa-tion and prescribe the duties of, a registrar in eachdistrict, who shall not be connected with or interestedin any Federal Home Loan Bank, any member, anynonmember borrower, or any institution of a classeligible to become a member or a nonmember borrowerunder this Act, and to require of such registrar a bond, ^in such amount and with such sureties as the board mayfix, conditioned on the faithful performance of theduties required of him.

(c) Such deposits in trust shall be so maintainedthat the aggregate unpaid principal of the home mort-gage loans secured by the home mortgages depositedas security for bonds or debentures shall, as nearly aspossible, be at all times not less than an amount equalto 190 per centum of the total outstanding amount ofsuch issue. Cash deposited under authority of sub-section (d) shall be security for an amount of bonds anddebentures equal to the amount of cash deposited.Direct obligations of the United States deposited underauthority of subsection (d) shall be security for anamount of bonds and debentures equal to the par valueof such obligations.

(d) The board may at any time require any FederalHome Loan Bank to deposit additional home mort-gages or to make substitutions of home mortgages tosecure such bonds and debentures, except that when inthe opinion of the board home mortgages are not avail-able for such purpose, it may permit, for such limitedperiods as it may deem advisable, the deposit of cash,or direct obligations of the United States in lieu of thedeposit of substitute or additional home loan mortgages.

(e) The board shall approve or determine the ratesof interest to be paid by the Federal Home Loan Banksupon the notes, debentures, or bonds which they mayissue except that no bond or debenture issued withinseven years after the enactment of this Act shall bear



a rate of interest in excess of 5% per centum per annum,and no bond or debenture issued thereafter shall bear arate of interest in excess of 5 per centum per annum,and shall provide such margins (not to exceed Vfo percentum) between interest rates received upon advancesmade to borrowing institutions and interest paid uponobligations which the Federal Home Loan Bank mayissue as will cover expenses of operation and reservesand, under such regulations as may be provided by theboard, some part of such reserve may be devoted toretirement of the stock subscribed by the United States.

(f) The Federal Home Loan Banks shall be jointlyand severally liable for the payment when due of allbonds and debentures, and of notes and other obliga-tions issued by any Federal Home Loan Bank, andinterest thereon, in accordance with their terms: Pro-vided, That this shall not prevent any particular Fed-eral Home Loan Bank, when specifically so authorizedby the board, from borrowing funds temporarily underthe terms of obligations which shall expressly state insubstance in such manner as shall be approved by theboard that the liability therefor is confined to the issu-ing bank. The Federal Home Loan Banks shall fromtime to time in accordance with rules, regulations, andorders of the board make adequate agreements andarrangements among themselves for meeting the pay-ment of the bonds, debentures, notes, or other obliga-tions on which they are jointly and severally liable, andthe interest thereon, but such agreements and arrange-ments shall not restrict in any respect the joint andseveral liability herein established.

(g) Each Federal Home Loan Bank shall have powerto accept only such deposits as are made by membersand nonmember borrowers of such bank, or by otherFederal Home Loan Banks. Such deposits shall not besubject to check, and no rate of interest in excess of 2per centum per annum shall be paid thereon. "De-posits" as used in this section, does not include depositsmade under section 6 (e). No Federal Home LoanBank shall transact any banking or other business notexpressly authorized by this Act.

(h) The board is authorized and empowered to per-mit, or, whenever in the judgment of at least fourmembers of the board an emergency exists requiringsuch action, to require. Federal Home Loan Banks torediscount the discounted notes of members or non-member borrowers held by other Federal Home LoanBanks, or to purchase the bonds issued by any otherFederal Home Loan Bank, or to make deposits withother Federal Home Loan Banks. In any case inwhich the board requires the purchase of bonds, theboard shall fix the price therefor, or if the board requiresthe acceptance of a deposit, it shall fix the securitytherefor. The rediscount rates and the rates of interestto be paid upon deposits shall be fixed by the board.

(i) Each Federal Home Loan Bank shall at all timeshave an amount, equal to the sums paid in on outstand-ing capital subscriptions of its members, plus an amount,equal to the current deposits received from its membersand from nonmember borrowers, invested in (1) obliga-tions of the United States, (2) deposits in banks ortrust companies, (3) advances with maturity not greaterthan one year made to members or nonmember bor-rowers, upon such terms and conditions as the boardmay prescribe, and (4) advances with maturity notgreater than one year made to members or nonmemberborrowers the amount of whose creditor liabilities (notincluding advances from the Federal Home Loan Bank)does not exceed 5 per centum of such member's or non-member borrower's net assets, which advances may bemade without the security of home mortgages or othersecurity, upon such terms and conditions'as the boardmay prescribe.

(j) Such part of the assets of each Federal HomeLoan Bank (except reserves and except sums providedfor in subsection (i)) as such bank may deem availabletherefor, and as are not required for advances to mem-bers or nonmember borrowers, may be invested, subjectto such regulations, restrictions, and limitations as maybe prescribed by the board, in direct obligations of theUnited States and in such securities as fiduciary andtrust funds may be invested in under the laws of theState in which the Federal Home Loan Bank is located.

INCORPORATION OF BANKS, AND CORPORATE POWERS

SEC. 12. The directors of each Federal Home LoanBank shall, in accordance with such rules and regula-tions as the board may prescribe, make and file with theboard at the earliest practicable date after the estab-lishment of such bank, an organization certificate whichshall contain such information as the board mayrequire. Upon the making and filing of such organi-zation certificate with the board, such bank shallbecome, as of the date of the execution of its organiza-tion certificate, a body corporate, and as such and in itsname as designated by the board it shall have powerto adopt, alter, and use a corporate seal; to make con-tracts; to purchase or lease and hold or dispose of suchreal estate as may be necessary or convenient for thetransaction of its "business, but no bank building shallbe bought or erected to house any such bank, norshall any such bank make any lease for such purposewhich has a term of more than ten years; to sue andbe sued, to complain, and to defend, in any court ofcompetent jurisdiction, State or Federal; to select,employ, and fix the compensation of such officers, em-ployees, attorneys, and agents as shall be necessaryfor the transaction of its business, subject to theapproval of the board; to define tjieir duties, requirebonds of them and fix the penalties thereof, and todismiss at pleasure such officers, employees, attorneys,and agents; and, by its board of directors, to prescribe,amend, and repeal by-laws, rules, and regulationsgoverning the manner in which its affairs may be ad-ministered; and the powers granted to it by law maybe exercised and enjoyed subject to the approval of theboard. The president of a Federal Home Loan Bankmay also be a member of the board of directors thereof,but no other officer, employee, attorney, or agent ofsuch bank, who receives compensation, may be a mem-ber of the board of directors. Each such bank shallhave all such incidental powers, not inconsistent withthe provisions of this Act, as are customary and usualin corporations generally.

EXEMPTION FROM TAXATION

SEC. 13. Any and all notes, debentures, bonds, orother such obligations issued by any bank shall beexempt both as to principal and interest from all taxa-tion (except surtaxes, estate, inheritance, and gifttaxes) now or hereafter imposed by the United States,by any Territory, dependency, or possession thereof, orby any State, county, municipality, or local taxingauthority. The bank, including "its franchise, itscapital, reserves, and surplus, its advances, and itsincome shall be exempt from all taxation now or here-after imposed by the United States, by any Territory,dependency, or possession thereof, or by any State,county, municipality, or local taxing authority; exceptthat in any real property of the bank shall be subject toState, Territorial, county, municipal, or local taxationto the same extent according to its value as other realproperty is taxed. The notes, debentures, and bondsissued by any bank, with unearned coupons attached,shall be accepted at par by such bank in payment of or



as a credit against the obligation of any home-ownerdebtor of such bank.

SEC. 14. When designated for that purpose by theSecretary of the Treasury, each Federal Home LoanBank shall be a depositary of public money, exceptreceipts from customs, under such regulations as maybe prescribed by said Secretary; and it may also beemployed as a financial agent of the Government; andit shall perform all such reasonable duties as depositaryof public money and financial agent of the Governmentas may be required of it.

SEC. 15. Obligations of the Federal Home LoanBanks issued with the approval of the board under thisAct shall be lawful investments, and may be acceptedas security, for all fiduciary, trust, and public fundsthe investment or deposit of which shall be under theauthority or control of the United States or any officeror officers thereof. The Federal reserve banks areauthorized to act as depositaries, custodians, and/orfiscal agents for Federal Home Loan Banks in thegeneral performance of their powers under this Act.All obligations of Federal Home Loan Banks shallplainly state that such obligations are not obligationsof the United States and are not guaranteed by theUnited States.

RESERVES AND DIVIDENDS

SEC. 16. Each Federal Home Loan Bank shall carryto a reserve account semiannually 20 per centum of itsnet earnings until said reserve account shall show acredit balance equal to 100 per centum of the paid-incapital of such bank. After said reserve has reached100 per centum of the paid-in capital of said bank,5 per centum of its net earnings shall be added theretosemiannually. Whenever said reserve shall have beenimpaired below 100 per centum of the paid-in capital itshall be restored before any dividends are paid. EachFederal Home Loan Bank shall establish such additionalreserves and/or make such charge-offs on account ofdepreciation or impairment of its assets as the boardshall require from time to time. No dividends shallbe paid except out of net earnings remaining after allreserves and charge-offs required under this Act havebeen provided for, and then only with the approval ofthe board. The reserves of each Federal Home LoanBank shall be invested, subject to such regulations,restrictions, and limitations as may be prescribed bythe board, in direct obligations of the United States andin such securities as fiduciary and trust funds may beinvested in under the laws of the State in which theFederal Home Loan Bank is located.

FEDERAL HOME LOAN BANK BOARD

SEC. 17. For the purposes of this Act there shall be aboard, to be known as the " Federal Home Loan BankBoard", which shall consist of five citizens of theUnited States appointed by the President of the UnitedStates, by and with the advice and consent of theSenate. Not more than three members of the boardshall be members of the same political party. Eachmember shall devote his entire time to the business ofthe board. Before entering upon his duties each ofthe members shall take an oath faithfully to dischargethe duties of his office. The President of the UnitedStates shall designate one of the members of the boardto serve for a term of two years, one for three years,one for four years, one for five years, and one for sixyears from the date of the enactment hereof, and there-after the term of each member shall be six years fromthe date of the expiration of the term for which his prede-cessor was appointed. Whenever a vacancy shall

occur among the members the person appointed to fillsuch vacancy shall hold office for the unexpired portionof the term of the member whose place he is selected tofill. Each of the members of the board shall receive asalary at the rate of $10,000 per annum: Provided, Thatduring the fiscal year 1933 the salary shall be $9,000per annum. The President shall designate one of themembers as chairman of the board. The chairmanshall be the chief executive officer of the beard and inhis absence or disability the duties of his office shall beperformed by some one of the other members to bedesignated as acting chairman by the chairman in suchorder as he may determine. The board shall supervisethe Federal Home Loan Banks created by this Act,shall perform the other duties specifically prescribedby this Act, and shall have power to adopt, amend,and require the observance of such rules, regulations,and orders as shall be necessary from time to time forcarrying out the purposes of the provisions of this Act.The board shall have power to suspend or remove anydirector, officer, employee, or agent of any FederalHome Loan Bank, the cause of such suspension orremoval to be communicated in writing forthwith tosuch director, officer, employee, or agent and to suchFederal Home Loan Bank.

ADMINISTRATIVE EXPENSES

SEC. 18. (a) There is hereby authorized to be appro-priated the sum of not to exceed $300,000 for salaries,travel and subsistence expenses, rents, printing andbinding, furniture and equipment, law books, books ofreference, periodicals, newspapers, maps, contractstenographic reporting services, telephone and tele-graph services, and all other necessary expenses of theboard, together with expenses preliminary to theorganization and establishment of the banks createdhereunder, until the end of the fiscal year 1933.

(b) The board shall have power to levy semiannuallyupon the Federal Home Loan Bank, and they shallpay, on such equitable basis as the board shall deter-mine, an assessment sufficient in us judgment to pro-vide for the payment of its estimated expenses for thehalf year succeeding the levying of each such assessment,beginning with the second half of the calendar year1933. All expenses of the board incurred jn carryingout the provisions of this Act, as determined by it,beginning July 1, 1933, shall be paid from the proceedsof such assessments, and if any deficiency shall occurin such fund at any lime between such semiannualassessments the board shall have power to make animmediate assessment against the banks to cover suchdeficiency on the same basis as the original assessment.If any surplus shall remain from any assessment afterthe expiration of the semiannual period for which itwas levied, such surplus may be deducted from the nextfollowing assessment.

SEC. 19. The board shall have power to select,employ, and fix the compensation of such officers,employees, attorneys, and agents as shall be necessaryfor the performance of its duties under this Act withoutregard to the provisions of other laws applicable to theemployment or compensation of officers, employees,attorneys, and agents of the United States. No suchofficer, employee, attorney, or agent shall be paid com-pensation at a rate in excess of the rate provided in thecase of members of the board. The board shall beentitled to the free use of the United States mails forits official business in the same manner as the executivedepartments of the Government; and shall determine itsnecessary expenditures under this Act and the mannerin which they shall be incurred, allowed, and paid.



EXAMINATIONS AND REPORTS

SEC. 20. The board shall from time to time, at leasttwice annually, require examinations and reports ofcondition of all Federal Home Loan Banks in suchform as the board shall prescribe and shall furnishperiodically statements based upon the reporls of thebanks to the board. The board shall annually make afull report of its operations to the Speaker of the Houseof Representatives, who shall cause he same to beprinted for the information of the Congress. For thepurposes of this Act, examiners appointed by theboard shall be subject to the same requirements, re-sponsibilities, and penalties as are applicable to examin-ers under the National Bank Act and the FederalReserve Act, and shall have, in the exercise of functionsunder this Act, the same powers and privileges as arevested in such examiners by law.

UNLAWFUL ACTS, AND PENALTIES

SEC. 21. (a) Whoever makes any statement, know-ing it to be false, or whoever willfully overvalues anysecurity, for the purpose of influencing in any way theaction of a Federal Home Loan Bank or the board uponany application, advance, discount, purchase, or re-purchase agreement, or loan, under this Act, or any ex-tension thereof by renewal, deferment, or action orotherwise, or the acceptance, release, or substitution ofsecurity therefor, shall be punished by a fine of notmore than $5,000, or by imprisonment for not morethan two years, or both.

(b) Whoever (1) falsely makes, forges, or counter-feits any note, debenture, bond, or other obligation, orcoupon, in imitation of or purporting to be a note, de-benture, bond, or other obligation, or coupon, issued bya Federal Home Loan Bank; or (2) passes, utters, orpublishes, or attempts to pass, utter, or publish, anyfalse, forged, or counterfeited note, debenture, bond, orother obligation, or coupon, purporting to have beenissued by a Federal Home Loan Bank, knowing thesame to be false, forged, or counterfeited; or (3) falselyalters any note, debenture, bond, or other obligation,or coupon, issued or purporting to have been issued by aFederal Home Loan Bank; or (4) passes, utters, or pub-lishes, or attempts to pass, utter, or publish, as true anyfalsely altered or spurious note, debenture, bond, orother obligation, or coupon, issued or purporting tohave been issued by a Federal Home Loan Bank, know-ing the same to be falsely altered or spurious, shall bepunished by a fine of not more than $10,000, or by im-prisonment for not more than five years, or both.

(c) Whoever, being connected in any capacity withthe board or a Federal Home Loan Bank, (1) embezzles,abstracts, purloins, or willfully misapplies any moneys,funds, securities, or other things of value, whether be-longing to it or pledged or otherwise intrusted to it; or(2) with intent to defraud the board or any FederalHome Loan Bank, or any other body politic or corpor-ate, or any individual, or to deceive any officer, auditor,or examiners of the board or a Federal Home LoanBank, makes any false entry in any book, report, orstatement of or to the board or a Federal Home LoanBank, or, without being duly authorized, draws anyorder or issues, puts forth, or assigns any note, deben-ture, bond, or other obligation, or draft, mortgage, judg-ment, or decree thereof, shall be punished by a fine ofnot more than $10,000, or by imprisonment for not morethan five years, or both.

(d) It shall be unlawful for any individual, partner-ship, association, or corporation (1) which is not aFederal Home Loan Bank to use the words " Federalhome loan bank," or a combination of the word

"Federal" with any of such words, as a name or apart of a name under which he or it shall do business(except in the case of a name under which business isbeing done at the time of the enactment of this Act),or (2) which is not a Federal Home Loan Bank, toadvertise or represent in any way that he or it is aFederal Home Loan Bank, or to publish or display anysign, symbol, or advertisement reasonably calculatedto convey the impression that he or it is a FederalHome Loan Bank, or (3) which is not a member, toadvertise or represent in any way that he or it is amember, or to publish or display any sign, symbol, oradvertisement reasonably calculated to convey theimpression that he or it is a member. Violations of thissection shall be punishable by a fine of not exceeding$1,000 or by imprisonment of not exceeding one year,or both.

(e) The provisions of sections 112, 113, 114, 115,116, and 117 of the Criminal Code of the United States(U. S. C., title 18, sees. 202 to 207, inclusive), in so faras applicable, are extended to apply to contracts oragreements of any Federal Home Loan Bank underthis Act, which, for the purposes hereof, shall be heldto include advances, loans, discounts, and purchase andrepurchase agreements; extensions and renewalsthereof; and acceptances, releases, and substitutionsof security therefor.

MISCELLANEOUS

SEC. 22. (a) In order to enable the board to carryout the provisions of this Act, the Treasury Depart-ment, the Comptroller of the Currency, the FederalReserve Board, and the Federal reserve banks arehereby authorized, under such conditions as they mayprescribe, to make available to the board in confidencefor its use and the use of any Federal Home LoanBank such reports, records, or other information as maybe available, relating to the condition of institutionswith respect to which any such Federal Home LoanBank has had or contemplates having transactionsunder this Act or relating to persons whose obligationsare offered to or held by any Federal Home Loan Bank,and to make through their examiners or other employ-ees, for the confidential use of the board or any FederalHome Loan Bank, examinations of such institutions.

(b) Every institution wThich shall apply for advancesunder this Act shall, as a condition precedent thereto,consent to such examination as the bank or the boardmay require for the purposes of this Act and/or thatreports of examinations by constituted authoritiesmay be furnished by such authorities to the bank orthe board upon request therefor.

SEC. 23. In order that the Federal Home LoanBanks may be supplied with such forms of stock, de-bentures, and bonds as may be necessary under thisAct, the Secretary of the Treasury is authorized toprepare such forms thereof as shall be suitable andapproved by the board, which shall be held in theTreasury subject to delivery, upon order of the board.The engraved plates, dies, and bed pieces executed inconnection therewith shall remain in the custody of theSecretary of the Treasury. The board shall reimbursethe Secretary of the Treasury for any expense incurredin the preparation, custody, and delivery of such stock,debentures, and bonds.

SEC. 24. (a) Any organization organized under thelaws of any State and subject to inspection and regula-tion under the banking or similar laws of such Stateshall be eligible to become a member under this Actif—

(1) it is organized solely for the purpose of sup-plying credit to its members;



(2) its membership (A) is confined exclusivelyto building and loan associations, savings and loanassociations, cooperative banks, and homesteadassociations; or (B) is confined exclusively to sav-ings banks; and

(3) of the institutions to which its membershipis confined which are organized within the State,its membership includes a majority of such insti-tutions.

(b) In all respects, but subject to such additionalrules and regulations as the board may provide, anysuch organization shall be a member for the purposes ofthis Act.

SEC. 25. Each Federal Home Loan Bank shall havesuccession until dissolved by the board under this Actor by further Act of Congress.

SEC. 26. Whenever the board finds that the efficientand economical accomplishment of the purposes ofthis Act will be aided by such action, and in accordancewith such rules, regulations, and orders as the boardmay prescribe, any Federal Home Loan Bank may beliquidated or reorganized, and its stock paid off andretired in whole or in part in connection therewith afterpaying or making provision for the payment of itsliabilities. In the case of any such liquidation or re-organization, any other Federal Home Loan Bank may,with the approval of the board, acquire assets of anysuch liquidated or reorganized bank and assume lia-bilities thereof, in whole or in part.

SEC. 27. Any institution, except a national bank,trust company', or other banking organization organizedunder any law of the United States, including the lawsrelating to the District of Columbia, shall be authorizedto subscribe for stock of a Federal Home Loan Bankif otherwise eligible to make such subscription underthe terms of this Act, any provision in any such lawto the contrary notwithstanding.

SEC. 28. If any provision of this Act, or the applica-tion thereof to any person or circumstances, is heldinvalid, the remainder of the Act, and the applicationof such provision to other persons or circumstances,shall not be affected thereby.

SEC. 29. That notwithstanding any provisions oflaw prohibiting bonds of the United States from bearingthe circulation privilege, for a period of three yearsfrom the dat of enactment of this Act all outstandingbonds of the United States heretofore issued or issuedduring such period, bearing interest at a rate notexceeding 3% per centum per annum, shall be receivableby the Treasurer of the United States as security forthe issuance of circulating notes to national bankingassociations, and upon the deposit with the Treasurerof the United States by a national banking associationof any such bonds, such association shall be entitledto receive circulating notes in the same manner andto the same extent and subject to the same conditionsand limitations now provided by law in the case of 2per centum gold bonds of the United States bearing thecirculation privilege; except that the limitation con-tained in section 9 of the Act of July 12, 1882, asamended, with respect to the amount of lawful moneywhich may be deposited with the Treasurer of theUnited States by national banking associations for thepurpose of withdrawing bonds held as security for theircirculating notes, shall not apply to the bonds of theUnited States to which the circulation privilege isextended by this section and which are held as securityfor such notes. Nothing contained in this section shallbe construed to modify, amend, or repeal any lawrelating to bonds of the United States which now bearthe circulation privilege.

As used in this section, the word " bonds" shall notinclude notes, certificates, or bills issued by the Um'tedStates.

There are hereby authorized to be appropriated suchsums as may be necessary to carry out the provisionsof this section.

SEC. 30. The right to alter, amend, or repeal thisAct is hereby expressly reserved.


Ruling of Attorney General regarding national-banknotes issued pursuant to the provisions of the act ofJuly 22,1932.There is published below a copy of an opinion

of the Attorney General of the United Statesrendered under date of August 12, 1932, holdingthat national-bank notes issued against thesecurity of bonds made eligible for this purposeby the act of July 22, 1932, are subject to a taxof one-fourth of 1 per cent semiannually, andholding also that such bonds lose the circula-tion privilege at the end of the 3-year periodand notes issued upon the deposit of such bondsmust be retired in an appropriate manner.

AUGUST 12, 1932.MY DEAR MR. SECRETARY: I have the honor

to refer to your letter of July 28, 1932, request-ing my opinion (1) as to whether the Treasurerof the United States shall collect one-half of1 per cent or one-fourth of 1 per cent each halfyear upon the circulating notes issued undersection 29 of the Federal home loan bank act ofJuly 22, 1932 (Public, No. 304, 72d Cong., 1stsess.), and (2) whether section 29 requiresbonds deposited with the Treasurer of theUnited States thereunder as security for theissuance of circulating notes to be withdrawnas such security at the expiration of three yearsfrom the date of the act.

Section 29, supra, provides:That, notwithstanding any provisions of law pro-

hibiting bonds of the United States from bearing thecirculation privilege, for a period of three years fromthe date of enactment of this act all outstanding bondsof the United States heretofore issued or issued duringsuch period, bearing interest at a rate not exceeding3% per centum per annum, shall be receivable by theTreasurer of the United States as security for theissuance of circulating notes to national bankingassociations, and upon the deposit with the Treasurerof the United States by a national banking associationof any such bonds, such association shall be entitledto receive circulating notes in the same manner andto the same extent and subject to the same conditionsand limitations now provided by law in the case of2 per centum gold bonds of the United States bearingthe circulation privilege; except that the limitationcontained in section 9 of the act of July 12, 1882, asamended, with respect to the amount of lawful moneywhich may be deposited with the Treasurer of theUnited States by national banking associations for the



purpose of withdrawing bonds held as security fortheir circulating notes, shall not apply to the bondsof the United States to which the circulation privilegeis extended by this section and which are held assecurity for such notes. Nothing contained in thissection shall be construed to modify, amend, or repealany law relating to bonds of the United States whichnow bear the circulation privilege.

This statute provides for the issuance of cir-culating notes to national banking associations,and, with an exception not material to yourfirst question, requires that such notes shall beissued in accordance with and subject to theconditions under which are issued circulatingnotes secured by 2 per cent gold bonds of theUnited States. One of the conditions underwhich the latter notes are issued is that pre-scribed by section 13 of the act of March 14,1900 (c. 41, 31 Stat. 45, 49; U. S. C , Title 12,sec. 542), as follows:

That every national banking association having ondeposit, as provided by law, bonds of the United Statesbearing interest at the rate of two per centum perannum, issued under the provisions of this act, tosecure its circulating notes, shall pay to the Treasurerof the United States, in the months of January andJuly, a tax of one-fourth of 1 per centum each halfyear upon the average amount of such of its notes incirculation as are based upon the deposit of said twoper centum bonds; and such taxes shall be in lieu ofexisting taxes on its notes in circulation imposed bysection fifty-two hundred and fourteen of the RevisedStatutes.

Section 13 of the act of March 14, 1900, justquoted, reduced the tax imposed by section5214 of the Revised Statutes on the averageamount of notes which each national bankingassociation has in circulation secured by 2 percent gold bonds of the United States from one-half of 1 per cent to one-fourth of 1 per centsemiannually. Since section 29 of the Federalhome loan bank act provides that, with anexception not material here, the notes issuedpursuant to that statute are to be issued uponthe same conditions as are provided by law inthe case of 2 per cent gold bonds of the UnitedStates bearing the circulation privilege, andsince it is clear that the tax upon notes basedupon the deposit of said 2 per cent bonds isnow one-fourth of 1 per cent semiannually, itseems entirely clear that this is the rate of taxapplicable to notes issued pursuant to the pro-visions of the Federal home loan bank act.

While the provisions of section 29 which bearupon this question are so clear that resort tothe legislative history as an aid to constructionseems to be unnecessary, I have examined thelegislative history, and while there is very littlematerial which bears upon this particular ques-tion, such as there is clearly supports my con-struction of the statute. (See Congressional

Record, vol. 75, No. 169, p. 15380, 72d Cong.,1st sess.)

Your second question involves particularlythe construction of the following portion ofsection 29 of the Federal home loan bank act:

* * * for a period of three years from the dateof enactment of this act all outstanding bonds of theUnited States heretofore issued or issued during suchperiod, bearing interest at a rate not exceeding 3%per centum per annum, shall be receivable by theTreasurer of the United States as security for theissuance of circulating notes to national banking asso-ciations, and upon the deposit with the Treasurer ofthe United States by a national banking association ofany of such bonds, such association shall be entitledto receive circulating notes * * *.

The provision which excepts the bonds of theUnited States to which the circulation privilegeis extended by this section and which are heldas security for such notes from the limitationscontained in section 9 of the act of July 12, 1882,as amended, with respect to the amount oflawful money which may be deposited withthe Treasurer for the purpose of withdrawingbonds held as security for their circulatingnotes must also be considered in connectionwith your second question.

The problem presented appears to me to bewhether the provisions of section 29 requirethat the circulation privilege of bonds depositedpursuant to that section shall cease three yearsafter the date of the enactment of the act orwhether the act merely means that after threeyears no more of such bonds may be depositedand accorded the circulation privilege with-out, however, affecting the circulating privilegeof bonds deposited within the 3-year period,leaving such circulation privilege outstandingduring the entire remaining life of the bondsdeposited. The effect of the first constructionis, of course, to permit a temporary expansionof the currency which is to terminate at the endof three years, while the effect of the latter con-struction would be to effect an expansion of thecurrency which would be permanent duringthe life of the bonds to which the circulationprivilege was accorded.

It must be admitted that the language of thestatute is not entirely free from ambiguity, and,in order to determine the intent of Congressand construe the language of the statute so asto effectuate that intent, it seems to me properand necessary to resort to the legislative historyof this provision. The only committee reportwhich deals with the section is the report ofthe conference committee, in which the follow-ing statement is made by the managers on thepart of the House with respect to the provisionsof section 29 (H. Rep. No. 1775, 72d Cong., 1stsess.):



Amendment No. 46: This amendment authorizesUnited States bonds bearing interest at a rate not inexcess of 3% per cent to bear the circulating privilegefor a period of three years after the enactment of thisact. * * *A careful examination of the debates in theSenate and House dealing with this provisionhas also been made. Several statements in thecourse of such debates by those who may beregarded as sponsors of this legislation andothers throw light on the intention of Congress.The provision for the extension of the circula-tion privilege to the bonds mentioned in section29 is referred to as not a " permanent proposi-tion," as "a temporary expedient/' as "a soundway of expanding the currency to meet theexigencies of this particular time," as "a tem-porary arrangement." It is said that the pro-vision "expires by limitation of law." It isalso said that "The whole thing terminates atthe end of five years * * *." [Changedlater to three years in the provision as passed.](For the foregoing, see Congressional Record,vol. 75, No. 168, p. 15301, 72d Cong., 1st sess.)

Reference is also made to the 3-year pro-vision by a member of the House Banking andCurrency Committee, who was also one of theHouse conferees on the bill, as follows (Con-gressional Record, vol. 75, No. 175, p. 16113,72d Cong., 1st sess.):

* * * Suppose they issue $900,000,000 of na-tional-bank notes under this provision. It is for threeyears. At the end of three years what will happen?You will find an inflation up to that time, and at theend of three years it has got to end, and they have gotto be called in, and the contraction of a billion dollarsin round numbers, in the currency in this country in1935 will be upon us, * * *.

A Member of the House, speaking againstthe bill, and referring to the circulation privi-lege afforded to certain bonds by its provisions,said (Congressional Record, vol. 75, No. 175,p. 16111, 72d Cong., 1st sess.):

* * * they would lose their circulation privilegeautomatically in three years, and thus all circulationwould be retired * * *.

I find nothing in the legislative history whichindicates that it was the purpose of Congress inadding section 29 to the Federal home loanbank act to provide for a permanent expansionof the currency beyond the 3-year period.

Reading the provisions of section 29 in aneffort to carry out the intent of Congress asdisclosed by the legislative history of themeasure, it is my opinion that the 3-yearperiod prescribed by section 29 means that thebonds referred to in said section lose the circu-lation privilege at the end of the 3-year periodand the notes issued upon the deposit of such

bonds must be retired in an appropriatemanner.

Respectfully,(Signed) WILLIAM D. MITCHELL,

Attorney General.The honorable the SECRETARY OF THE

TREASURY.

Assessments covering costs of examining trust depart-ments of banks or trust companies.There is published below the text of the act

of Congress approved July 2, 1932, whichamends section 5240 of the Revised Statutes ofthe United States so as to authorize the Comp-troller of the Currency to assess the cost ofexamining trust departments on a pro ratabasis against all banks or trust companies underhis jurisdiction having such departments.


[H. R. 8694]

AN ACT To amend section 5240, United States Revised Statutes, asamended (U. S. C, title 12, ch. 2, sec. 82), and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assem-bled, That section 5240, United States Revised Statutes,as amended (U. S. C, title 12, ch. 3, sees. 481, 482, 483,484, 485), be amended by adding thereto a new para-graph reading:

"In addition to the expense of examination to beassessed by the Comptroller of the Currency as here-tofore provided, all national banks exercising fiduciarypowers under the provisions of section 11 (k) of theFederal Reserve Act, as amended (U. S. C , title 12,ch. 3, sec. 248 (k)), and all banks or trust companiesexercising fiduciary powers in the District of Columbiashall be assessed by the Comptroller of the Currencyfor the examinations of such fiduciary powers, a fee inproportion to the amount of individual trust assetsunder administration and the total bonds and/or notesoutstanding under corporate bond and/or note issuesfor which the banks or trust companies are acting astrustees upon the dates of examination of the variousbanks or trust companies."


Treasury rulings on check tax, etc.There is published below the text of a letter

signed by the Secretary of the Treasury con-taining rulings upon a number of questionsarising under the revenue act of 1932. Thequestions concern principally the tax on checks,drafts, and orders for the payment of moneyimposed by section 751 (a) of that act. Certainquestions arising under other sections of thatact are also covered and appear in Parts I andVIII (b).



SECRETARY OF THE TREASURY,WASHINGTON, July 28, 1932.

Hon. EUGENE MEYER,Governor Federal Reserve Board,

Washington, D. C.MY DEAR GOVERNOR: In your letter of July 16, 1932>

request is made for rulings upon a number of statedquestions arising under the revenue act of 1932 out oftransactions incident to the operations of the Federalreserve system. These questions appear to fall gen-erally into two classes, those relating to the applicationof a number of the excise taxes to the Federal reservebanks themselves (Pt. I) and those relating to theapplication of the tax on checks, etc., provided in sec-tion 751 of the act, to a great variety of transactionsinvolving the transfer of funds and the settlement ofaccounts between banks in the course of the operationsof the Federal reserve system (Pts. II to VIII).

The questions stated in Part I, involving the extentto which the Federal reserve banks themselves are sub-ject to the various excise taxes, are governed in a largepart by section 7 of the Federal reserve act (sec. 531,title 12, U. S. C), which provides:

"* * * Federal reserve banks, including th®capital stock and surplus therein, and the incomderived therefrom shall be exempt from FederaljState, and local taxation, except taxes upon reaestate."

Under these provisions no excise tax may be collectedin respect of a transaction to which a Federal reservebank is a party in its own right, if, under the taxingact, the tax as such would be payable by the reservebank. The tax on checks, etc., under section 751, isimposed upon the maker or drawer of the instrument.The taxes on telephone, telegraph, etc., facilities, pro-vided in section 701, and on electrical energy, providedin section 616, are imposed in each case upon the personwho makes payment for the facility to the companywhich furnished it. The taxes on sales of miscellaneousarticles (other than electrical energy), provided in TitleIV of the act, are imposed in each case upon the personselling the article.

Questions in Part I of your letter are accordinglyanswered as follows:

I. TAXABILITY OF FEDERAL RESERVE BANKS

1. Q. Does the tax imposed by section 751 (a) applyto checks drawn on Federal reserve banks by their ownofficers acting in their official capacities?

A. No.2. Q. Does the tax imposed by section 701 (a) (2)

apply to leased telephone and telegraph service con-tracted for, used, and paid for by the Federal reservebanks?


apply to telegraph, telephone, cable, and radio messagessent by the reserve banks or sent to them collect, whichare paid for by the reserve banks and for which noreimbursement is received by them?


&pply to messages paid for by the reserve banks but forwhich they are later reimbursed by other banks, such;as messages sent by the reserve banks in performing.services for other banks?

A. Yes.6. Q. Is electrical energy furnished to Federal re-

serve banks for their own use subject to the tax imposedby section 616 (a)?

A. No.

6. Q. Do the taxes on fuel oil and other articles ofmerchandise imposed in Article IV of the revenue actof 1932 apply when such articles are purchased by thereserve banks for their own use?

A. Yes. The taxes as such are payable by theseller.

The questions which are stated in Parts II to VIIIof your letter are intended to cover the more commonforms of transactions by which transfers of funds orsettlements of balances are effected between banks.It would seem desirable to set forth a general state-ment of the basis for the rulings on these questions,so that the scope of the rulings will be understood whenapplied to cases where there may be some local varia-tions in the form of a given transaction. To give aseparate explanation of the basis of the ruling on eachquestion in your letter is believed to be unnecessary,since it is apparent that a great many of the transac-tions covered by your letter, although falling into differ-ent classes and grouped separately, have certain ele-ments in common, so far as the application of the taxis concerned. A general statement as to the characterand form of the instruments which are subject to thetax will serve to explain the rulings on a majority ofthe questions stated, and will permit more or less cate-gorical answers to be made to the specific questions,except in those cases where an additional statement asto the basis of the ruling may be necessary.

The tax under setation 751 is imposed upon certain" instruments presented for payment," namely,"checks, drafts, or orders for the payment of money"drawn upon a bank, banker, or trust company."Checks" and "drafts" are terms which have a well-established meaning. " Orders for the payment ofmoney," intended to be taxed under this section, aresuch as have some similarity to "checks" and "drafts,"at least to the extent that they must be capable ofbeing characterized as "instruments" and of being"presented for payment." The phrase "presented forpayment" implies that the instrument must be capableof having a holder; that is, a person who by reason ofhis possession of the instrument is entitled to receivepayment of the sum of money specified therein. More-over, the instrument must, according to its terms oreffect, call for the payment of money; an order orauthorization merely to charge a book account does notconstitute such an order as is subject to the tax. Ofcourse, if the instrument is in fact an order for thepayment of money, it is none the less taxable becausethe payment of money may, in a particular case or evenin a number of cases, be accomplished through a bookentry.

A great number of the transfers of funds or settle-ments mentioned in your letter are accomplishedthrough written orders or authorizations, usually onstandard forms, by which the addressee is directed orauthorized to charge the account of the person givingsuch order or authorization or to make an offsetagainst a balance standing to the credit of such person.In some instances the writing does not in express termscontain such an order or authorization but merelystates the substance of the transaction, and the orderor direction to the addressee is implied from the courseof dealing between the parties or has been separatelyprovided for by prior agreement. Some of the orders orauthorizations call for the delivery or shipment of cur-rency or coin to the person giving such order or author-ization. Orders, authorizations, or instructions of thenature mentioned, whether oral or written, are notsubject to the tax.

Some of the transactions referred to in your letterinvolve transfers of funds belonging to or due to the



United States. If the transfer is effected by or throughan instrument which is of such character and form asto be subject to tax, the tax must be collected, as noexemption attaches by reason of the fact that funds ofthe United States are involved.

The detailed questions stated in your letter, withsuch changes in phraseology as are necessitated byomitting references to exhibits, and the answers theretoare as follows:

II. VARIOUS FORMS OP REMITTANCES OR SETTLEMENTSFOR CHECKS AND COLLECTION ITEMS

Pursuant to the provisions of sections 13 and 16 ofthe Federal reserve act and regulation J of the FederalReserve Board, the Federal reserve banks act as clear-ing houses and collect checks for their member banks,which maintain deposit balances with the Federalreserve banks as their legal reserves, and for nonmem-ber banks which establish deposit balances with theFederal reserve banks for the purpose. The board'sregulations on this subject are supplemented by cir-culars issued by the Federal reserve banks. Each Fed-eral reserve bank receives each day numerous checksdrawn upon banks in its district and forwards them tothe drawee banks for payment. The usual procedure isto send all the checks received during each day drawn ona particular bank to that bank, with one covering letter.The covering letter is known as a "cash letter." Thetotal amount of the checks thus transmitted is ac-counted for to the reserve bank in any one of severalways, the principal ones being (a) by authorizing theFederal reserve bank to debit the amount to the de-posit balance of the remitting bank on the books of theFederal reserve bank, and (6) by sending the Federalreserve bank a check or draft drawn upon the remittingbank's deposit with the Federal reserve bank or a cor-respondent bank. The reply to the cash letter will alsostate the amount, if any, of the items which are re-turned to the reserve bank (because not collected orfor some other reason), and this amount is accordinglydeducted from the total stated in the cash letter.

The Federal reserve banks also collect for their mem-ber banks promissory notes, bills of exchange, andother similar items, and the procedure in forwardingand accounting for such items is similar, so far as thequestions here presented are concerned, to that fol-lowed in connection with the collection of checks, ex-cept for differences in detail which are indicated inquestions 8 to 11 below. For convenience, such itemsare commonly referred to as "noncash items," in orderto distinguish them from checks and similar itemspayable on demand at banks, which are commonlyreferred to as "cash items."

1. Q. Is a tax payable in the event that a memberbank, in response to the cash letter, authorizes theFederal reserve bank to debit the amount to its depositbalance with the Federal reserve bank (a) by a specificauthorization in the form used for that purpose, or(6) by returning to the Federal reserve bank, a mem-orandum slip merely stamped "Debit" or "Paid,"which has by custom the effect of such authorization?

A. (a) No. (5) No.2. Q. In some cases the reserve bank is given a

continuing authorization to charge the account of themember bank with the net amount of each "cashletter" sent to that bank. Is such authorization taxa-ble? If so, is it taxable once or each time an entry ismade?

A. Neither the continuing authorization nor the sep-arate entries made pursuant thereto are taxable.

3. Q. Is the tax payable in the event that the bankmakes remittance of the amount called for bv its

reply to the cash letter, by means of a draft or check,(a) drawn against its deposit balance with the Federalreserve bank, or (b) drawn against a deposit in acorrespondent bank?

A. The check or draft, whether drawn against adeposit with a Federal reserve bank or against a de-posit in a correspondent bank, is taxable.

4. Q. In one instance the cash letter has a detach-able portion which is in the form of a draft and whichis marked "Settlement draft." This "settlementdraft" is in the usual form of a draft; it is drawn by theremitting bank on, and payable to the order of, theFederal reserve bank. It is not dealt with as an ordi-nary draft in that it is never returned to the drawer,but is held by the reserve bank as a part of its records.Is such a "settlement draft" taxable?

A. Yes. The "settlement draft" is clearly of a char-acter and form which make it subject to tax; and thefact that after payment it is not returned to the drawerdoes not affect the taxability of the instrument.

5. Q. In the event that any of the transactionsdescribed in the preceding questions is taxable, is onlyone tax imposed, or is the tax payable with regard toeach separate item inclosed with the cash letter, whena single settlement is made for the total amount ofsuch items?

A. The taxability of the instruments mentioned inthe preceding questions which are held to be taxableis not affected by the fact that such instruments aregiven in settlement of a great many separate items,each of which may likewise be subject to the tax; onlyone tax is payable in respect of each instrument.

6. Q. It sometimes occurs that, in its response to acash letter, the member bank will incorrectly state theamount chargeable against its reserve account, usuallybecause it has failed for some reason to return and de-duct an item which should have been returned anddeducted because uncollectible or for some other reason.In that event it communicates again with the reservebank, advising it of the correcting book entry to bemade. Is such a transaction taxable?

A. No.7. Q. In certain reserve districts, in order to achieve

greater promptness in settlement, where drafts aresent in settlement of cash letters, the drafts are re-quired to be on certain member banks which have pre-viously agreed that such drafts may be immediatelycharged against their accounts by the reserve bank,without waiting for the draft to be sent to the draweebank. After such a charge is made the reserve banknotifies the bank upon which the draft is drawn, sothat it may keep its books in order, and forwards thedraft to it. Is such notification taxable?

A. No.8. Q. In connection with noncash items, a printed

slip is often attached to each item when it is forwardedfor collection by the Federal reserve bank, such sliptaking the place of a letter of transmittal. Acknowl-edgment of receipt of the item, acknowledgment thatpayment has been received, and authorization to thereserve bank to charge its account is made by the bankreceiving it by returning a carbon copy of the slipstamped "Paid" or "Debit." Is this transaction, orthe returned slip, taxable?

A. No.9. Q. Is the result different if the collecting bank

merely advises the reserve bank that it has creditedthe latter's account, which is an implied authorizationto the latter to make a corresponding entry on its books?

A. No.10. Q. Promissory notes, bills of exchange, and

other noncash collection items which are payable bypersons located in the same city as the Federal reserve



bank or its branch are sometimes presented by theFederal reserve bank directly to the persons by whomthey are payable, and such persons give the Federalreserve banks in payment for such items checks drawnon member banks in the same city. In such cases thereserve bank immediately presents such checks bymessenger to the banks on which they are drawn andthe drawee banks give the Federal reserve bank draftsagainst their deposit balances with the Federal reservebank. Are such drafts subject to the tax?

A. Yes.11. Q. In the circumstances described in the pre-

ceding question, the bank, instead of sending a draft,sometimes authorizes the reserve bank to charge itsaccount. Is this transaction taxable?

A. No.

I I I . CLEARING-HOUSE TRANSACTIONS

The questions under this heading involve the settle-ment of balances resulting from exchange of checksbetween banks. The settlement of balances resultingfrom the exchange of checks through the NewarkClearing House Association, Newark, N. J., will illus-trate thip type of transaction. Each business day eachbank in the Clearing House Association takes to theoffice of the association checks deposited with such bankdrawn on other banks in the association, and messen-gers representing the respective banks in the associationcall for and receive the checks drawn on their banks.Each bank is credited with the amount of the checksdrawn on the other banks which it brings to the clearinghouse and is debited with the amount of the checksdrawn on it which other banks bring. There is a netcredit or debit balance in favor of or against each bankas a result of the day's exchanges, and the aggregate ofthe net credit balance must, of course, be exactly equalto the aggregate of the net debit balances. The amountsof the net credit and debit balances to all banks arewritten on the clearing-house statement for that day,and this statement, signed by an officer of the ClearingHouse Association, is sent by messenger to the FederalReserve Bank of New York, and the balances as shownon the statement are settled on the books of the Federalreserve bank by credits and debits to accounts of mem-ber banks. The balances in favor of or against bankswhich are members of the Federal reserve bank arecredited or debited to the accounts of such banks onthe books of the Federal reserve bank. The balancesfor or against other banks, i. e., banks which are notmembers of, and therefore have no account with, theFederal reserve bank, are, by arrangement between thebanks concerned, credited or debited to the accountsof designated banks in New York City which are mem-bers of the Federal reserve bank. These credits anddebits are made by the Federal reserve bank pursuantto continuing letters of authorization on file with itsigned by the various banks.

The questions asked in this connection are:1. Q. Are any of the above-described transactions,

which consist merely in book entries, taxable?A. No.2. Q. Is the clearing-house statement above re-

ferred to subject to the tax?A. No.3. Q. Are the letters of authorization subject to

tax? If so, are they taxable once, or each time anentry is made, or as to each item covered by each entry?

A. Such letters of authorization are nob subject totax.

4. Q. In some instances the clearing house issuescertificates showing the net balances. Such a certifi-cate is issued to a creditor bank calling upon a debtor

bank to pay the creditor bank the amount statedtherein. No accounts are carried in any of the clear-ing-house banks in the name of the manager for thepurpose of effecting settlement pursuant to the certifi-cates, and these certificates are issued by the clearing-house manager merely as memoranda to facilitate thesettlement of balance between the members of theClearing House Association. The Federal reserve bankparticipates in the clearings, and certificates issued inits favor against member banks are charged againsttheir deposit balances on the books of the Federalreserve bank pursuant to standing authorizations. Aresuch certificates subject to the tax?

A. No.5. Q. In some instances (particularly where banks

are so located as not to be in communication by mes-senger with the Federal reserve bank) a group of banksadopt, by agreement, the procedure of forwardingeach day to each member of the group all of the itemsthey receive that are payable by or through that mem-ber of the group, forwarding to the reserve bank aform on which are listed the names of all the othermembers of the group, together with the amount of theitems that it has forwarded to each. When receivedby the reserve bank, this form is used as an authoriza-tion to make the appropriate entries in the accountsof the banks in the group. In practice, however, in-stead of making several entries the reserve bankstrikes the balance from the advices sent by all themembers of the group and makes each day only oneentry in each of their accounts, representing the netbalance for the particular bank. Is the use of theseforms in the manner above described taxable?

A. No.6. Q. Are the resultant book entries made by the

reserve bank taxable?A. No.7. Q. In certain instances the Federal reserve bank

itself acts as a clearing house, receiving the checksfrom the various banks, striking the balance and mak-ing the appropriate entries in the accounts of the vari-ous banks. Are these transactions taxable?

A. No.8. Q. In certain instances the Federal reserve bank

performs these services even for banks which have noaccount with it (i. e., banks not m'embers of the Federalreserve system). Where such banks are located inthe same city as the reserve bank, the method adoptedis for the drawee bank to send a messenger to the reservebank to get the checks drawn on it which have beenforwarded to the reserve bank for collection. Thechecks are immediately charged to the account of amember bank which has authorized the reserve bankto do so, and credited to the bank which forwardedthem. In the event that the check is later dishonoredthe book entries are reversed. Are such authorizationstaxable?

A. No.

IV. MEMBER BANKS OBTAINING CURRENCY FROMRESERVE BANKS

A member bank desiring currency usually obtains itfrom the Federal reserve bank, and the amount usually,is debited on the books of the Federal reserve bank tothe deposit balance maintained by the member bankwith the Federal reserve bank as the legal reserve ofthe member bank. Such requests for currency and theauthorizations to debit the reserve balances assume avariety of forms and give rise to the following questions:

1. Q. Is such a request by a member bank for theshipment of currency to it taxable when made by tele-phone and not confirmed in writing?



A. No.2. Q. If such a request is made by telephone but con-

firmed in writing after the shipment of the currency, isit taxable?

A. No.3. Q. If a messenger sent to the Federal reserve bank

delivers merely a receipt for the currency and receivesthe currency, is the transaction taxable?

A. No.4. Q. If the messenger in such a case delivers a check

or draft drawn on the Federal reserve bank for theamount of the currency, is the transaction taxable?

A. The check or draft is taxable.5. Q. If a written request for currency is accompanied

by a check or draft, are both the check and the requesttaxable?

A. Only the check or draft and not the writtenrequest is taxable.

6. Q. When the transaction is completed, the reservebank frequently sends a confirmation on a printed formto the member bank. Is this document taxable,whether or not any other part of the transaction istaxable?

A. The confirmation is not taxable, whether or notany other part of the transaction is taxable.

V. TRANSACTIONS INCIDENT TO REDISCOUNTS ANDADVANCES BY FEDERAL RESERVE BANKS

1. Q. Federal reserve banks extend credit accommo-dations to their member banks: (a) By rediscounting,on the indorsement of their member banks, the commer-cial, industrial, and agricultural paper acquired bythem from their customers; and (b) by making advancesto their member banks on their promissory notessecured in the manner prescribed by law. In eitherevent the proceeds usually are made available to themember bank by crediting the amount to the depositbalance of the member bank on the books of the Federalreserve bank. Are such credit entries taxable?

A. No.2. Q. At the maturity of the rediscounted paper or

the promissory notes of the member banks, the Federalreserve banks, pursuant to agreements or regulationspreviously made, return the rediscounted paper orpromissory notes to the member banks and debit theamounts due thereon to the deposit balances of themember banks on the books of the Federal reservebanks. Are these transactions taxable?

A. No.3. Q. The member bank frequently desires to have

its promissory notes or rediscounted paper returned toit prior to the time when it would be returned in duecourse as described above. Its reason for so desiringmay be, for instance, that the maker of the instrumentdesires to pay it before maturity, or it may be that themember bank desires to decrease the total amount ofthe paper rediscounted for it by the reserve bank. Insuch case the member bank communicates with thereserve bank by letter or by telegram, requesting thatthe item be returned to it, and, either impliedly oractually in words, authorizing the reserve bank to debitits deposit balance on the books of the reserve bankwith the amount due thereon. Are these transactions(i. e., the book entries, the transmission of the instru-ments, or the communications requesting the return ofthe instruments and authorizing the book entries)taxable?

A. Neither the book entries, the transmission of theinstruments, nor the communications requesting thereturn of the instruments and authorizing the bookentries are taxable.

VI. INTERBANK TRANSFERS OF FUNDS

One of the important functions of the Federal reservesystem is to facilitate the transfer of funds betweenbanks. This function is performed (with unimportantexceptions) free of charge for members of the system.It is done, as far as possible, without resorting to ship-ments of currency.

Transfers between member banks in the same Federalreserve district are made merely by means of entries onthe books of the reserve bank. The steps involved insuch transaction are: (1) A member bank requests thereserve bank to transfer an amount on its books fromthe reserve account of the requesting bank to theaccount of another bank, (2) the reserve bank makesthe transfer on its books, and (3) the bank to whoseaccount the transfer is made is notified. If the bank towhich the transfer is made is located in another dis-trict, the second step must consist in (a) a transferfrom the account of the requesting bank to the accountof the reserve bank for the district in which is locatedthe bank to which the transfer is made, and (6) atransfer by that reserve bank to the account of thelatter. If the latter has no account with the reservebank, the reserve bank transfers to the account of abank which has and which is a correspondent of thebank to which the transfer is made. For the purposeof effecting transfers between two Federal reserve banks(where the transfer is from one district to another),the gold settlement fund is maintained in Washington.This fund was created by a deposit of gold by eachFederal reserve bank with the Treasurer of the UnitedStates to the credit of the Federal Reserve Board, whichmaintains books showing the amount due to each Fed-eral reserve bank. The Federal reserve banks eachown an undivided interest in this fund and advise theFederal Reserve Board each day of the transfers madeto each other. The board makes appropriate bookentries transferring interests in the fund equivalent tothe transfers of funds made between the Federal reservebanks.

Member banks make their requests for transfers inmany ways—by letter, telegram, telautograph, andtelephone. After the transfer has been made, the Fed-eral reserve bank sends a memorandum of the trans-action to the member bank, and executes appropriatevouchers, and makes appropriate entries on its books.

1. Q. Are such transfers of funds by one Federalreserve bank to another at the request of a memberbank, made by means of a telegram or letter sent byone Federal reserve bank to another, taxable?

A. No.2. Q. Is a request for such a transfer, made by the

member bank, taxable if made by telephone and notconfirmed in writing?

A. No.3. Q. Is such a request taxable if made by telephone

and confirmed in writing after the transfer has beenmade?

A. No.4. Q. If made by telautograph or telegram and not

confirmed in writing?A. No.5. Q. If made by telautograph or telegram and sub-

sequently confirmed in writing?A. No.6. Q. If made by letter?A. No.7. Q. If such requests are taxable if made by tele-

phone, then when a number of such requests are madein the course of one day and the Federal reserve bankmakes only one book entry for the total amount at



the conclusion of the day, is one tax only imposed or is-each separate request taxable?

A. Neither the separate requests nor the coveringbook entry is taxable.

8. Q, In the event that a request for transfer offunds made by letter is taxable, is a letter containing arequest for several transfers subject to taxation onceor several times, depending upon the number of trans-fers requested in the letter? (In this connection it hasbeen suggested that, if taxable at all, such requests aresubject to only one tax, since they are contained in oneletter or memorandum.)

A. Such a request is not taxable.9. Q. Requests for such transfers are sometimes

accompanied by a draft for the amount to be trans-ferred. Is such draft taxable?

A. Yes.10. Q. If so, is the letter transmitting the draft and

making the request also taxable?A. No.11. Q. Is a receipt or acknowledgment on a printed

form sent by the reserve bank to the member bank inresponse to a letter such as is described in the precedingquestion also taxable?

A. No.12. Q. When a bank located in one Federal reserve

district requests that a transfer be made to a banklocated in another district, the steps incident to com-pleting the transaction include a transfer by the Federalreserve bank of the district in which the requestingbank is located to the Federal reserve bank of the dis-trict in which the transferee bank is located and atransfer from the latter reserve bank to the transfereebank, both transfers being accomplished by means ofbook entries in the accounts of the respective banks.Is the latter transfer taxable?

A. No.13. Q. Transfers are also made by Federal reserve

banks between two member banks located in its district.Requests for such transfers take the same forms as thetransfers described above, but such transfers are accom-plished merely by means of book entries in the reserveaccounts of the two banks involved. Are such trans-fers taxable when the requests are made in any of thedifferent ways described above (including messenger,telephone, written memorandum, etc.)?

A. No.

VII. TRANSFERS TO 5 PER CENT REDEMPTION FUND, WARLOAN DEPOSIT ACCOUNT, AND RECONSTRUCTIONFINANCE CORPORATION

National banks issuing national bank notes arerequired by statute to maintain with the Treasurer ofthe United States a redemption fund equal to 5 per centof their notes in circulation. When necessary, anational bank will in most instances make additions toits 5 per cent redemption fund by requesting theFederal reserve bank of its district to transfer therequired amount to the account of the Treasurer of theUnited States. Such requests are made substantiallyin the following form: "Please charge our account$ and credit the Treasurer of the United Statesfor the account of our 5 per cent redemption fund."The reserve banks prepare "debit tickets" covering thenecessary book entries and send copies, or similar slips,to the member banks for their records.

1. Q. Is such a request taxable?A. No.2. Q. Sometimes such a request is accompanied by a

draft. Is the draft or the written request taxable?

It has been contended by some of the reserve banksthat such transfers to officers of the United States arenot taxable in any event.

A. The draft is taxable.3. Q. Similar questions are also raised with regard to

transfers from the reserve account of a member bankto the Treasurer of the United States as payments onthe war loan deposit of the bank giving the direction(representing its subscription to United States securi-ties) .

A. Requests to charge the reserve account of a bankto cover subscriptions to United States securities arenot taxable, but drafts drawn for this purpose aretaxable.

4. Q. From time to time borrowing institutions repayon advances made by the Reconstruction Finance Cor-poration, doing so (a) by means of instructions to thereserve bank to charge the borrowing bank's accountand to credit the Treasurer of the United States foraccount of the Reconstruction Finance Corporation,and (b) by means of drafts. Debit tickets are preparedby the reserve bank and similar slips are forwarded tothe requesting bank for its records. Are either theinstructions, the debit tickets and slips, or the draftstaxable?

A. Neither the instructions nor the debit tickets orslips are taxable, but the drafts are taxable.

VIII. MISCELLANEOUS TRANSACTIONS

(a) Purchase of securities by reserve banks on behalf ofmember banks.—Member banks frequently requestreserve bank^ to purchase Government or other securi-ties, or bankers' acceptances for them, authorizing thereserve bank, either impliedly or specifically, to chargetheir reserve account with the cost. Such requests aremade in a variety of ways.

1. Q. Is such request taxable if made by telephoneand not confirmed in writing?

A. No.2. Q. If made by telephone and subsequently con-

firmed in writing?A. No.3. Q. If made by letter not specifically authorizing

the reserve bank to charge the account of the requestingmember bank?

A. No.4. Q. If the request described in the preceding ques-

tion contains a specific authorization to charge themember bank's account?

A. No.5. Q. If the reserve bank, when the transaction is

completed, sends to the member bank a memorandumconfirming the transaction and stating the amount ofthe charge, is such confirmation taxable?

A. No.(b) Incidental expenses, telephone calls, etc.—6. Q. In

connection with transactions of this type, as well asnumerous others, the reserve banks have occasion tocharge the accounts of member banks, without specificauthorization, with expenses incurred in connectionwith telephone, telegraph, shipping charges on securities,etc. The member bank is notified by sending to it acopy of the "debit ticket" made out by the operatingdepartment which incurred the expense, or else a listof the expenses which have been charged to its accountis sent to the member bank at the end of the month.Are such "debit tickets," book entries, or memorandataxable?

A. No.



7. Q. Are telephone calls and telegrams subject to atax when they pertain to fiscal agency or Reconstruc-tion Finance Corporation business when the cost falldirectly on the Treasury Department or the Recon-struction Finance Corporation?

A. As already pointed out, a Federal reserve bankis exempt from tax in cases where the charges for suchmessages sent on its own account are payable by it.Where, however, the charge for the telephone or tele-graph message is paid by a member bank, the tax mustbe collected, notwithstanding the message may haverelated to matters invoving the Treasury Departmentor the Reconstruction Finance Corporation. Wherethe charges for such messages are paid by the TreasuryDepartment or the Reconstruction Finance Corporationno tax is due; the Treasury Department is exempt byreason of section 701 (b) of the revenue act, and theReconstruction Finance Corporation is exempt byreason of section 10 of the act creating it (act of Jan-uary 22, 1932, Public No. 2, 72d Cong.), which hasprovisions almost identical with those of section 7 ofthe Federal reserve act.

(c) Member bank subscriptions to stock of Federalreserve banks.—8. Q. All banks which are members ofthe Federal reserve system are required to subscribeto the capital stock of the Federal reserve bank in anamount equal to 6 per cent of their own unimpairedcapital and surplus. As a member bank's capital andsurplus accounts are increased it is necessary to sub-scribe for a proportionate increase in its holdings ofFederal reserve bank stock. Infrequently drafts aredrawn in favor of the Federal reserve bank for thesepayments. Usually when subscribing for this addi-

tional stock the member bank authorizes a charge to itsaccount. In the latter case, is the transaction taxable?

A. The authorization to charge the reserve accountof the member bank is not taxable, but the draft istaxable.

(d) Correction entries.—9. Q. Member and non-member banks make deposits of coin or currency withthe reserve bank, receiving immediate credit subject toverification. Occasionally in process of verification thereserve bank finds counterfeits and shortages for whicha debit is prepared and charged to the depositing bank'saccount. Are such entries taxable?

A. No.10. Q. A similar question is raised with regard to

maturing coupons deposited with the reserve bank.When mutilated or unmatured coupons are discoveredthe coupons are returned to the depositing bank andcharge made to its account. Are such transactionstaxable?

A. No.(e) Penalty for insufficient reserves.—Q. At periodic

intervals an analysis is made of each member bank'sreserve account to determine whether adequate reserveshave been carried during the period, as required by theFederal reserve act. If the reserves have not beenproperly maintained, a penalty is assessed pursuant tothe Federal reserve act and the regulations of theFederal Reserve Board. The penalty is charged to thereserve account of the member bank by the reservebank itself. Is such a charge taxable?

A. No.Very truly yours,

(Signed) OGDEK L. MILLS,Secretary of the Treasury.



FEDERAL RESERVE STATISTICS BY DISTRICTS, ETC.

DISCOUNTS, BY MONTHS



New YorkPhiladelDhiaClevelandRichmondAtlantaChicasroSt LouisMinneapolisKansas CitvDallasSan Francisco

Total


1932

July

25.4103 572 351 728.539 941 21&512.723 116 095.2

522.9

June

29.8103 766 251 825.333 733 513.310.624.113 789.4

495.0

1931

July

9.026 016 515 817.213 612 18.94.39 5

10.825.3

169.0

DISCOUNTS, BY WEEKS

fin thousands of dollars)


BostonNew YorkPhiladelphia

Cleveland _RichmondAtlanta

ChicagoSt. LouisMinneapolis

Kansas CityDallas _San Francisco

Tota l . .

Wednesday series (1932)

July 6

28,615102,88268,442

53,74926,44435,936

34, 77413,20313,040

22,00813, 23887,495

499,826

July 13

26,817103,05370,385

52,58626. 28439,771

37,12612,66212,384

22.94615, 74395,813

515, 570

July 20

21,996102,53972,359

52,69228, 61643, 599

51, 34613,89712,606

24,39116,80996,715

537, 565

July 27

22,805103,65274,088

45,01228,36942,279

40,91213,49213,251

24,26618,39998,855

525, 380

RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES

[Amounts in thousands of dollars]


BostonNew YorkPhiladelphia. _ClevelandRichmondAtlanta _Chicago -St. LouisMinneapolis—_Kansas City._.DallasSan Francisco.

Total..


Total cash reserves

1932

July

225, 678792, 662198, 737245,86973, 79672, 804724, 59184, 08459, 56283,24544,699187,470

2, 793,197

June

225,061785, 489206,897247, 22480,76482, 558701, 78883, 68960, 75982, 02044, 017198, 959

2, 799, 225

1931

July

236,1681,251, 553259, 919338, 22190, 954139, 817636, 808110, 33572, 32799,16547,029

302, 413

3, 584, 709

Total deposits

1932

July

143,050940, 561120,408151,24955,19344,805284, 57857,98942, 46868, 75347, 560137, 729

2, 094, 343

June

139, 217957,515122, 918149, 51762,45348,148317, 73559,52243, 68972, 00547, 452145, 726

2,165, 897

1931

July

147, 3761,089,050

152, 203201, 97965, 73159, 926337, 77473,14651, 62684, 80257, 011

192, 466

2, 513, 090

Federal reserve notes in circu-lation i

1932

July

207,068607,446257,030294,87292,641

113,363731, 38798, 21679, 45591,10537, 669

252, 381

2,862, 633

June

195, 560574,967248,848288, 65688,749

113, 393607, 51391,03274, 38981,82135,213

230, 010

2, 630,151

1931

July

137,192300,018147, 768200, 650

69, 845117, 570376, 56272,85350, 03763, 26627, 443

178, 516

1, 741, 720

Reserve percentages

1932

July

64.551.252.755.149.946.071.353.848.952.152.448.1

56.3

June

67.251.355.756.453.451.175.855.651.553.353.353.0

58.4

1931

July

83.090.186.684.067.178.889.175.671.167.055.781.5

84.3

1 Includes " Federal reserve notes of other reserve banks," as follows: Latest month, $15,252,000; month ago, $14,360,000; year ago, $14,992,000.



EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE NOTESTATEMENT, JULY 31, 1932


RESOURCES

Gold with Federal reserveagents

Gold redemption fund withU. S. Treasury

Gold held exclusivelyagainst Federal re-serve notes

Gold settlement fund withFederal Reserve Board

Gold and gold certificatesheld by banks

Total gold reservesReserves other than gold

Total reservesNonreserve cash _ _.

Bills discounted:Secured by U S. Govern-

ment obligations-Other bills discounted. _.

Total bills discounted.Bills bought

U. S. Government securities:BondsTreasury notesCertificates and bills

Total U. S. Govern-ment securities

Other securities . _ _ _

Total bills and securi-ties._.

Due from foreign banksFederal reserve notes of other

banksUncollected items.-Bank premisesAll other resources __

Total resourcesLIABILITIES

Federal reserve notes inactual circulation

Deposits:Member bank—reserve

accountGovernment . . .Foreign bankOther deposits

Total depositsDeferred availability items..Capital paid in .SurplusAll other liabilities

Total liabilities

Reserve ratio (per cent)FEDERAL RESERVE NOTE

STATEMENT

Federal reserve notes:Issued to F. R. bank

by F. R. agent..Held by F. R. bank

In actual circulation.__Collateral held by agent as

security for notes issued tobanks:

Gold -.Eligible paperU. S. Government securi-

ties

Total

1,969,152

62,944

2,032,096

242,370

360,945

2,635,411200, 732

2,836,14370,072

204,625333,593

538,21842,930

421,052268,518

1,151,758

1,841,3285,957

2,428,4332,887

14,939305,234

58,11948,439

5,764,266

2,858,909

2,051,50557,3678,922

39, 723

2,157,517297,613153,738259,42137,068

5,764,266

56.5

3,079,771220,862

2,858,909

1,969,152524,874

611,400

Boston

169,627

3,358

172,985

17,211

15,759

205,95519,776

225, 7315,187

11,25711,469

22,7262,343

20,47215,38685,370

121,228

146,297211

37439,0283,3361,555

421,719

204,569

140,5095,209

889226

146,83338,36210,92220,039

994

421, 719

64.2

222,52717,958

204,569

169,62722,675

30,900

NewYork

472,942

13,568

486,510

63,721

229,232

779,46352,804

832, 26717,754

61,79840,100

101,89816,802

189,761102,934412,297

704,9924,244

827,9361,180

3,39294,07414,81728,709

1,820,129

607,651

929,56418, 0751,036

25,649

974,32490,89359,18275,07713,002

1,820,129

52.6

666,68459,033

607, 651

472, 942104,626

96,000

Phila-delphia

138,800

6,670

145,470

6,830

9,583

161,88333,117

195, 0003,320

27,86948,435

76,3043,182

31, 24021,60185,709

138, 5501,538

219,574286

65323, 2902,901

842

445,866

256,950

116, 0024,6081,205

121

121,93622,18616,18726,4862,121

445,866

51.5

265,6668,716

256,950

138,80075,655

52,000

Cleve-land

178,970

6,578

185,548

22,421

18,167

226,13618,887

245, 0233,835

13,61634,083

47,6793,102

36,50128,328

112,403

177, 232

228,013269

1,35628,3737,9661,266

516,101

295,293

141,6542,1641,1822,882

147,88227,97414,26327,6403,049

516,101

55.3

308,48913,196

295,293

178,97047,492

85,000

Rich-mond

46,000

2,749

48, 749

8,866

6,909

64,5248,976

73,5003,491

7,68322,934

30,6173,230

9,7067,534

29,892

47,132

80,979106

1,17322,0203,6173,446

188,332

94,988

50,0013,567

46861

54,09720,9945,200

11,4831,570

188,332

49.3

100,0755,087

94,988

46,00032,612

22,000

Atlan-ta

48,000

3,951

51,951

5,217

8,052

65,2205,336

70,5564,729

8,27134,200

42,4711,459

9,7237,467

29,613

46,803

90, 73398

9286,7612,4893,844

180,138

111,703

41, 2851,165

433372

43,2557,1584,871

10,4492,702

180,138

45.5

129,60017,897

111,703

48,00041,309

42,000

Chicago

623,595

9,497

633,092

56,890

27,741

717,72326,563

744,28614,749

14, 21725, 910

40,1275,010

41,02335,339

198,448

274,810

319,947373

2,84033,8177,8282,728

1,126,568

727,806

297,4774,8911,5682,219

306,15532,46317,18138,4114,552

1,126,568

72.0

766,13038,324

727,806

623,59540,690

108,000

St.Louis

59,710

2,146

61,856

9,338

5,490

76,6848,545

85,2293,447

8,1335,801

13,9341,043

13,93610,42641,369

65,731

80,70818

1,04711,1133,4611,165

186,188

99,674

54,7523,091

410779

59,03211,7064,471

10,0251,280

186,188

53.7

107,2557,611

99,674

59, 71013,113

34,600

Min-neap-olis

37,830

2,237

40,067

9,623

3,255

52,9453,432

56,3772,073

2,00912,161

14,170631

17,3907,504

29,674

54,568175

69,54411

9506,6161,8351,566

138,972

79,151

39,5281,976

257196

41,9576,9132,9216,3561,674

138,972

46.6

82,0212,870

79,151

37,83013,602

31,900

Kan-sas

City

52,680

2,838

55,518

13,011

10,658

79,1875,266

84,4532,345

2,98421,347

24,331946

11,7869,091

36,090

56,967

82,24477

1,04415,3323,649

865

190,009

92,964

66,4953,068

339102

70,00413,4744,0708,1241,373

190,009

51.8

102,6839,719

92,964

52,68024,027

28,000

Dallas

20,735

1,218

21,953

6,274

3,895

32,1228,334

40,4563,684

3,96715,436

19,403969

14,2693,312

13,140

30,721

51,09375

2798,7201,7871,282

107,376

37,078

42,9983,277

328767

47,3709,2603,9147,6242,130

107,376

47.9

43,1006,022

37,078

20,73519,467

3,000

SanFran-cisco

120,263

8,134

128,397

22,968

22,204

173,5699,696

183,2655r458

42,82161, 737

104,5584,213

25,24519,59677,753

122,594

231,365183

90316,0904,4331,171

442,868

251,082

131, 2406,276

8076,349

144,67216,23010,55617,7072,621

442,868

46.3

285,51134,429

251,082

120,26389,606

78,000



ALL MEMBER BANKS IN EACH DISTRICT

RESERVES HELD, EXCESS RESERVES, AND BORROWINGS AT FEDERAL RESERVE BANKS


Federal reserve district

Boston - - -New YorkPhiladelphia - - -Cleveland - --RichmondAtlanta -ChicagoSt Louis -MinneapolisKansas CityDallas <.San Francisco -- -

Total -


Reserves held

Total

1932

June

134.0915.0116.3140.058.344.1

306.156.141.669.644.4

136.7

2, 061.9

May

126.41,004.0

116.5141.150.146.0

304.456.840.567.345.3

139.4

2,137.7

1931

June

141.11,042.9

145.5192.061.557.4

325.271.949.182.054.7

180.6

2,403. 7

Excess

1932

June

22.8101.0

1.72.18.91.9

75.04.03.18.22.93.0

234.4

May

14.1163.3

2.52.41.42.5

72.03.72.55.82.84.3

277.1

1931

June

2.680.53.43.81.82.6

12.63.42.35.42.18.4

128.9

Borrowings at Federal reservebanks

1932

June

29.8103.666.251.825.333.733.413.310.623.813.789.2

494.4

May

30.2101.562.756.824.431.333.713.912.025.911.780.1

483.9

1931

June

11.333.019.417.819.412.716.27.84.1

11.69.9

24.4

187.5

NET DEMAND AND TIME DEPOSITS OF BANKS IN LARGER AND SMALLER CENTERS[In millions of dollars]


BostonNew York . .PhiladelphiaClevelandRichmond _. _AtlantaChicagoSt. Louis --Minneapolis - -Kansas City .__ ._DallasSan Francisco

Total


Member banks in larger centers (places over 15,000)

Net demand

1932

June

9275,942

815961336307

1,556362207405290819

12,927

May

9366,143

807965329316

1,565369199403298827

13,157

1931

June

1,1646,9481,0151,344

401408

2,102490257507365

1,091

16,091

Time

1932

June

6871,845

5981,009

296286

1,261300197213156

1,482

8,329

May

6971,882

6031,016

292289

1,275308201214157

1,500

8,433

1931

June

8522,567

7501,342

355312

1,745358215244193

1,778

10, 712

Member banks in smaller centers (places under 15,000)

Net demand

1932

June

782191471357759

15893

109177133102

1,486

M a y

802221481388063

16695

111180137103

1,522

1931

June

9728018417510483

222121141232179146

1,964

Time

1932

Jane

14348340226416265

25198

20311833

112

2,333

May

14448740426616366

25498

20711834

114

2,354

1931

June

160590457319201

8434912124014039

138

2,836


A U G U S T , 1932 FEDERAL RESERVE BULLETIN 547

WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES

PRINCIPAL RESOURCES AND LIABILITIES, BY DISTRICTS AND FOR N. Y. CITY AND CHICAGO


Total


Bos- i Nek-ton ' York

• Phila-I del-i phia

Cleve-land

Rich-mond

579575572570

330328327326

124124124124

206204203202

249247245244

119117117116

130130128128

38353534

13131814

281277276274

231229229229

8532

71686366

92878281

8798

Atlan-ta

500498497494

328327327325

110109109108

218218218217

172171170169

88878685

84848484

28282726

7877

217217211210

191189190190

12864

60615755

74736967

21242826

Chi-cago

2,3382,3292,2922,283

1,6661,6571,6461,641

785775768763

881882878878

672672646642

376377352348

296295294294

205220241242

49465242

1,1901,2071,1821,179

932923919926

2115119

241232243245

329312312301

11122213

St.Louis

Minne-apolis

Kan-sas

CityDallas

SanFran-cisco

NewYork

City

Chi-cago

Loans and investments: iJuly 6 i 18,532July 13 ! 18,478July 20 | 18,333July 27 ! 18,334

Leans: !July 6 ..__; 11,116July 13 ! 11,149July 20 ; 11,028July 27 ! 10,992

On securities— IJuly6._ 4,632July 13 4,626July 20 4,618July 27 ! 4,587

All other— |July 6 6,484Julyl3._ 6,523July 20 6,410July 27 1 6,405

Investments:July 6 7,416July 13 7,329July 20 7,305July 27 7,342

United States Governmentsecurities-

July 6 _. 4,210July 13 1 4,123July 20 I 4,107July 27._ 4,136

All other— |July 6 3,206July 13 3,206July 20 3,198July 27 3,206

Reserves with Federal reservebank:

July 6 1,510July 13 1,558July 20 i 1,578July 27 i 1,627 j

Cash in vault: !July 6 . . . J 228July 13 J 227July 20 _j 224July 27 214 !|

Net demand deposits: jjJuly 6 10,799 I1

July 13 10,879July 20 10,735July 27 10,758

Time deposits:July 6 5,542July 13 _ 5,525July 20 5,537Juiy27 5,588

Government deposits:July6 201July 13 128July 20 88July 27 65

Due from banks:July 6 1,175July 13 1,190July 20 1,166July 27 1,147

Due to banks:July 6 2,636July 13. . 2,632July 20 2,601July 27 2,556

Borrowings from Federal re-serve bank:

July 6 197July 13 207July20__ 229July 27 „ 214

,182,176,200,199

763763778774

289285

474478490486

419413422425

223219225226

196194197199

10410496

110

18 i1 7 j

\r\716713718716

405404404426

10643

121124114122

146142139134

7, 425 1,0917,401 - "°°7,2957,322

4,1974,2424,133

1,1,0851,084

636633632

4,122 630

1,9121,9141,9111,892

2,2852,3282,2222,230

3,2283,1593,1623,200

2,0411,9701,9802,009

1,1871,1891,1821,191

i737'777798826 |

55 !53 I49 I51 !

5, 3495,3965,3115,349

1,1731,1741,1891,214

473222

126129110107

1,1111,1401,1241,117

313314316315

323319316315

455455453454

188187185185

267268268

71717171

12121111

630630633629

207267266266

171075!

92 i928979

173172171167

1,9231,9211, 9161,914

1,1741,1721,1671,163

529527526523

645645641640

749749749751

409409407411

340340342340

112109103110

24272526

831841

813811812814

1711

71697573

204201199200

35

529527523522

305310307305

118117115115

187193192190

224217216217

127128128128

38363533

6766

282280275272

200199200200

4322

62686967

329327323321

195194192191

55565656

140138136135

134133131130

66

1781761691G9

137138140138

2111

37383732

54504946

532529529529

270268268267

78787978

192190189189

262261261262

138138140141

124123121121

44454244

13141313

356359352353

178179180178

543

117125122116

140142142139

384379376

240240237237

74757474

166165163163

145144142139

31282728

7766

231232229225

126126128125

12

1,7191,7231,7221,720

1,0121,0151,0141,011

245252252251

767763762760

707708708709

376377378379

331331330330

848282

18171616

538551550546

889886882882

161064

111112120118

151153155152

6,4206,3916,2856,317

3,5643,6063,4993,492

1,6471,6501,6481,630

1,9171,9561,8611,862

2,8562,7852,7862,825

1,9011,8311,8391,870

955954947955

728750778

42403840

4,8854, 9164,8574,898

762764774800

71432920

77767474

1,0511,0811,0661,060

1,268.1,2671,2371,232-

• 881878873-872

522*515.508506

359-363:36536$

387389*36*360.

219*221195

168.168169170

143:159»179*184

28211718

776

794785.781

341337336340

14975

166162178181

234224227220



RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES OF EACH DISTRICT

Federal reservebank or branchcity

Prime commercial paper

1932

July June

1931

July

Loans secured by prime stock-exchange collateral

1932

July June

1931

July

Loans secured by warehousereceipts

1932

July June

1931

July

Interbank loans

1932

July June

1931

July

Boston

New York.Buffalo

Philadelphia..

Cleveland..Cincinnati..Pittsburgh.

Richmond..Baltimore..Charlotte

AtlantaBirmingham..Jacksonville...NashvilleNew Orleans-

Chicago.Detroit_.St. Louis....Little Rock..Louisville...

Minneapolis..Helena _.

Kansas CityDenverOklahoma CityOmaha _.

D a l l a s . . . . . . . .El PasoHoustonSan Antonio..

San FranciscoLos AngelesPortlandSalt Lake CitySeattleSpokane. . . _

4 -45 -6

5 -65 -6

5 -6

4 -55 -6

6 -76

3 -57 -8

4 -64 - 6

65 -6

5 -67 -8534-65 -7

6 -75 -76 -6}

4 - 5

4 -4}5 -6

5 -65 -6

6

5 -5M5 -6

5 -54^-85 -8

6534-6

4 -5

4K2-53/2o —7

3 -57 -8

4 -6

53^-6

5 -67 -8534-65 -7

66 -75 -76 -6>

3 -4

3^-45 -6

4 -55 -65 -5}

>4434-65 -6

6 -76 -65 -6

334-4

4 ^ 53 -5

6

3 -46 -8

4 -6

43^-5

4 -4>7 -853^-6

434-5534^3

534-6

4 -5

5 -65 -65^-6

5 -76K-76 -7

6534-7

5 -6

6 -6J7 -8

5 -66 -6V26 -6H6 -7634-763^-7

534-6

5 -6

5 -653^-65M-6

534-65 -65 -66 -6634-76 -8

6

63^-76

5 -53^7 -8

53^-6

53^7

6 -77 -8534-763^-7

5 -66 -6V6 -63,

6634-7

4 -55 -6

43^-6

5 -65 -6

58

-6

4 -65 -86 -7

6

4 -4 }53^-6

434-66 -61

4 -66 -8

6 -6^7 -853^36 -7

5 -66 -63^

66

6 -6>634-7

4 -56

5 -6

43^-563^-76 -8

6534-7

7 -7

3 -56 -75 -66 -86 -86 -63

5 -78

53^-663^-8

6 -6H6 -7

63^-76 -7

5 -6

4 -43^6

65 -7

434-67 -7>

4 -4}6 -8

5 -66 -6>6 -86 -6H

53^-68

6 -8

66

634-76 -7

5 -5

5 -5

4 - 56 -635 -6

4 -4H6 -86 -63^

65 -6

5 -66 -63.

6

33^-46 -8

5 -653^-76 -8

6

5 -68

5 -66 -8

5 -76 -7

634-76 -7

6

4 -5

534-65 -6

66

534-6H

5 - 5 H6 -6H

6 -7

534-6

5 -5H5 -65 -5

6

4^-56

434-5

5 -6

5 -5M5 -6

5 -6666

534-6

5 -53.6 -6J

53^-66 -7

6

55 -65 -5M

4 -55

434-65 -65 -6

5 -6

5 -55 -6

66

4H-6

4 -66

5 -6

NOTE.—Rates at which the bulk of the loans of each class were made by representative banks during the week ending 15th of month. Ratesfrom about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the largest banks in their respective cities.



OTHER BANKING AND FINANCIAL STATISTICSMATURITY DISTRIBUTION OF BILLS, ETC.


SHIPMENTS AND RECEIPTS OF AMERICANCURRENCY TO AND FROM EUROPE

BY SELECTED BANKS IN NEW YORK CITY

[Paper currency only. In thousands of dollars]

Month

JanuaryFebruaryMarchAprilMayJune _JulyAugust __SeptemberOctober ___NovemberDecember _

1931

.Ship-ments

toEurope Europe

470130

1,380915

2,5708,81110,2563,2268,4333,088

521,523

Re-ceiptsfrom

4,051960863

1,4692,103779394

3,7233,29011,5887,0393,749

Netship-ments(-)or

receipts

(+)+3,581

+830-517+554-467

-9,032-9 ,862

+497-5 ,143+8,500+6,987+2,226

1932

Ship-ments

toEurope

Re-ceiptsfrom

Eur

Netship-ments(-)or

•ope receipts(+)

3,3355,2218,4684,56310,93816,265

+3,310+5,221+8,468+4, 563

+10,938+16, 253

NOTE.—For explanation and back figures see BULLETIN for January,1932, pp. 7-9.

MEMBERSHIP IN PAR-COLLECTION SYSTEM[Number of banks at end of June]

Federal reservedistrict

United States._.

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallas . _ _San Francisco

Member banks

1932

6,977

367824708639387338828443563798599483

1931

7,782

387902744719458371

1,009506615854658559

Nonmember banks

On par list

1932

8,560

223335314766435137

2,3781,167

3571,533

439476

1931

10, 327

255387428889497162

2,9691,362

4461,804

535593

Not on par list

1932

3,116

636773226039786621622349

1931

3.437

743284324944198121121261

Figures cover all incorporated banks (other than mutual savings banks).

132689—32 6

Bills discounted:July 6July 13July 20July 27

Bills bought inopen market:

July 6July 13July 20July 27._..._.

Certificates andbills:

July 6July 13July 20July 27

Municipal war-rants:

July 6 ___July 13July 20July 27

Total

499.826 347,952515, 570 360,919537, 565 377,066525,380 370,062

77,35361, 62151,90239, 700

1, 097, 3151,140, 7281,146, 734 102', 3541,151, """

5,9935,9355,7875,961

With-in 15days

16 to 30 31 to 60 61 to 90

42, 52828, 00218,1927,663

83, 625

5,8015,7335,2255,423

days

31,66634,47540, 69038,281

6,7675,5525,0877,241

116157461388

days

56,94055,70054,41853,992

6,24911, 67011, 47412,122

81, 475 109, 320 216, 041 231,861

days

41,029 21.42,977 2i;

79,150 194, 042 308,361 93,267 382, 28368, 600 387. 302 194,488 11,000 382,990

66,150 112, 600 341, 853 193,089 65,855 372,149

453535150

daysto 6

,764,039

44, 295 20, 58442, 733 19, 776

21, 79616,39717,14912, 674

Over 6

475460512536

85,011 373,607

UNITED STATES POSTAL SAVINGS

[Balance to credit of depositors. In millions of dollars]

End of month

JanuaryFebruaryMarchApril -MayJuneJuly-AugustSeptemberOctoberNovemberDecember

1927

141.5143.8146.4147.1147.4147.4147.1147.9148.2148.7149.0148.5

1928

148.9151.1152.0152.2152.0152.1151.7152 2152.3153.1153. 9153.9

1929

153.5154.8155.0154.3153. 8153.6157.8160.1160.3161.6163.7164.3

1930

165.1167.9169. 5170.2171.2175.3180.7186.5189.8192.5200.7245.4

1931

278.4292.1302.7313.8325.0347.4372. 5422.7469.9538.1565.5605.1

1932

665.6691.8

*> 697. 3v 713. 9P 733. 5v 776. 3

* Preliminary.


EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING SIX MONTHS ENDING JUNE 30, 1932Ox

Earnings:Discounted billsPurchased billsUnited States securitiesDeficient reserve penaltiesMiscellaneous

Total earnings

Current expenses:Salaries-

OfficersClerical employeesOther employees

Governors' conferencesFederal Advisory CouncilDirectors' meetingsTraveling expenses l

Assessments for Federal Reserve Boardexpenses

Legal feesInsurance on currency and security

shipmentsOther insuranceTaxes on banking houseLight, heat, and powerRepairs and alterations. _RentOffice and other suppliesPrinting and stationeryTelephone __TelegraphPostageExpressage. _.Miscellaneous expenses

Total, exclusive of cost of currency

Federal reserve currency:Original cost, including shipping chargesCost of redemption, including shipping

$11,451,1512,013,849

11,437,424326,889

1,155, 550

Total, current expensesCurrent net earningsDividends paidReimbursable expenditures of fiscal agency

department:SalariesAllother

Total

Total

26, 384,863

1, 328,0005,670, 2861,372, 566

1,8938,383

89,608101, 592

345,23138, 670

176,122241, 247766,008177,03343,30183,737163,487179,735128,979218, 819737,128206,833296,451

12, 375,109

483, 265

49, 205

12, 907, 579

13,477, 2844, 696, 645

275, 681129, 529

405,210

Boston

$631,653149,040692,16114, 69749,239

1, 536, 790

67,375419,18662,291

98900

2,7173,129

26,1291,200

15, 76169,07511,8671,068240

9,99016, 74610,3852,909

83, 78322,04514, 304

867, 884

42,722

4,636

915, 242

621, 548347, 546

8,1624,628

12, 790

NewYork

$2,238, 799685,579

4,823,08631,139

365, 775

8,144,378

289,1781, 587,035

317,557

6469,801

14,675

112,380

38,12839,949

202, 53935,8489,326

37,08036,43040,01126,265126, 26050, 71982, 796

3,056,623

141,347

11, 062

3, 209, 032

4,935, 3461,792,331

23, 42912, 490

35, 919

Philadel-phia

$1, 578, 754121,637860, 92217, 69377,844

2, 656,850

67,500458,34066,946

24600

3,6977,340

35,4161,376

20, 96419, 83820,13910,8792,833522

16,30110,98416,4796,87770,29025, 52123, 770

886,636

55,017

5,676

947, 329

1, 709, 521489,721

20,48310, 266

30, 749

Cleveland

$1,606,438124,816

1,007, 65833,90693, 641

2,866,459

108, 314506,394193,340

111595

5, 2237,709

34,7462,120

15,31518,40377,82920,0447,324

43, 68717,14716,4029,49313, 64463, 21914,89418,494

1,194, 447

50, 583

4,611

1, 249, 641

1,616,818432, 083

25, 31618, 301

43,617

Rich-mond

$587,15690, 855

237,95624,47131,994

972, 432

84, 663298, 224

76,18738

1503,9827,400

13,94254

9,76913,14536,1748,2471,3827,3628,35510, 5315,51316, 67050, 51212,24713,193

677,740

1,071

2,919

681, 730

290, 702159,216

23,89214,805

38,697

Atlanta

1,042,815

115,890197,47439,916

86639

11,77011,602

12,8292,501

9,64613, 80731,0028,0551,6132,3606,609

10. 3253,879

30, 87736,83316,32114,158

578,192

34,765

3,125

616, 082

426, 733148, 620

16, 6148,953

25, 567

Chicago

$977,437265, 244

1, 602, 06830, 753

244,008

3,119, 510

160,484735, 367197,800

110754

6, 5489, 590

46, 3797,034

20, 31223,469

145, 94019,2414,633

19, 60825, 91311,19017,17198, 31624,32133, 762

1, 607,942

23,314

6,434

1, 637?690

1,481,820527,124

52, 59527, 565

80,160

St. Louis

$316,67683, 340

360, 43722,11231, 954

814, 519

85, 573273,020

75,03688

8008,529

11,657

12,0981,926

3,76119, 82630, 35210, 9013,6071,5007,3847,9456,32518,14936, 7967,44915, 045

637,767

54,235

3,139

695,141

119, 378135, 615

19, 8364,663

24,499

Minne-apolis

$199, 52449, 592

390, 5146, 7637,510

653,903

55,944163, 61555,393

7071,0304,2498,706

7,6516,639

4,78115,91233,060

9,160

6,4748,4882,9487,818

26, 3444,092

13, 641

437,321

1,866

440, 015

213, 88888,174

15,1977,330

22, 527

KansasCity

$554, 42775,898

292, 9638, 515

142,125

1,073,928

89,144307, 094110,851

332800

15,3323,739

10,1184,901

4,53924,88946,82318, 2014,239

9,60210, 3924,727

27,02856,686

18, 376

776,802

26,931

1,761

805,494

268, 434123, 506

16,4404,974

21,414

Dallas

$249,96350,033

356,88011,74216,101

684,719

88, 654241,823

57, 587299

1,1695,5376,219

5,230

6,19814,25919, 3698,3581,499

8255,9578,1675,040

23,80036, 2028,714

16, 812

571,385

612

577, 465

107, 254120, 625

12,4354,678

17,113

San Fran-cisco

$1,817,441223,179609, 210110,82957,901

2,818, 560

115,281482, 714119,662

30012,223

23,8765, 689

16,02321,98953, 70616,2325,108

27,24118,98017,41212, 98927, 61151,88711, 52132,100

1, 082,370

45,946

4,402

1,132, 718

1,685,842332,084

41, 28210,876

52,158

O

2

1 Except amounts included in items "Governors' conferences" and "Federal Advisory Council.'



BANK SUSPENSIONS AND BANKS REOPENEDBANK SUSPENSIONS AND BANKS REOPENED, BY DISTRICTS

[Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions duringgiven period include any banks which may have been subsequently reopened. Figures for banks reopened during given period include reopen-mgs both of banks closed during that period and of banks closed in prior periods. Deposits (including those of banks reopened) are as of dateof suspension where available, otherwise as of the latest available call date preceding suspension]

[Figures for latest month are preliminary]


July, 1932:Boston . .New YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. Louis _ -M inneapolisKansas CityDallasSan Francisco

Total «

January-July, 1932:BostonNew YorkPhiladelphiaClevelandRichmondAtlanta „ChicagoSt. Louis .-MinneapolisKansas CityDallas ..-San Francisco

Total

Banks suspended

Number

Allbanks

11379

10• 58

98

1516

128

111423435948

34111257

1192495

946

Members

Na-tional

112

38

113

20

2106

15111362179

196

21

191

State

1

11

3

11

1

4184

125

37

Non-mem-bers

1

2496

4998

14

3

105

83

17274831

2619148991669

718


Allbanks

5221,4662,4054,7725,3182,811

3 27, 0502,0904,2853,486

1421,257

55, 604

72, 71625, 77328, 29718,62949,49515,443

3 200,86538,69815, 23519, 7357,396

64,937

557, 219

Members

Na-tional

1,466552

1,548

96912,101

644142516

17, 938

4,18420, 5803,1417,409

14, 4395,877

64,20513,0373,2935,6543,282

15,154

160,255

State

551

400751

1,702

10, 258797

551

1,98521, 5013,193

212150

3,068

41, 715

Non-mem-bers

522

1,8532,6735,3181,442

314,1982,0904 2852,842

741

35,964

58, 2744,396

25,15610,66935, 056

7,5813 115,159

22,46811,94213,8693,964

46, 715

355, 249

Banks reopened

Number

Allbanks

1

26

10

1

20

2568

30145031111695

187

Mem-bers^

1

--

1

5

216171651

31

34

Non-mem-bers

223

29

1

15

4

4 723

* 13444

26101664

153

Deposits (in thousandsof dollars)

Allbanks

507

14,34713,110

39, 917

253

68,134

2,2717,3157,116

36, 51423,9695,631

57,67712, 3644,0102,9845,5587,614

173, 023

Mem-bers1

507

6,631

8,540

15,678

2,271507

7,116577

9,777680

13,1042,7971,132

4,231340

42, 532

Non-mem-bers

2 14,3476,479

2 31, 377

253

52,456

6,808

« 35, 93714,192* 4, 951

* 44, 5739,5672,8782,9841,3277,274

130,491

1 Represents national banks only, except as follows: January-July, 1 State member in Chicago district with deposits of $628,000,1 in St. Louisdistrict with deposits of $339,000, and 1 in San Francisco district with deposits of $340,000.2 At time of suspension, 1 bank in Cleveland district with deposits of $13,400,000 and 4 banks in Chicago district with deposits of $29,663,000were State member banks.

3 Exclusive of deposits of 2 banks for which deposits figures are not yet available.* Attimeofsuspension,3banksintheClevelanddistrictwithdepositsof$32,591,000,lbankinthe Atlanta district with deposits of $531,000, and

7 banks in the Chicago district with deposits of $31,969,000, were State member banks.Back figures.—See BULLETIN for February, 1932; also Annual Reports for 1930 (Table 117), 1929 (Table ill), 1928 (Table 115), 1927 (Table 111),

and 1926 (Table 98).



BANK SUSPENSIONS AND BANKS REOPENED—Continued

BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, DURING JULY, 1932[Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during

given period include any banks which may have been subsequently reopened. Figures for banks reopened during given period include reopen-ings both of banks closed during that period and of banks closed in prior periods. Deposits (including those of banks reopened) areas of dateof suspension where available, otherwise as of the latest available call date preceding suspension]

[Figures are preliminary and subject to revision]

State

New England:MaineNew Hampshire .VermontMassachusettsRhode IslandConnecticut

Middle Atlantic-New York _ -New JerseyPennsylvania

East North Central:OhioIndiana __IllinoisMichigan _ _ _Wisconsin

West North Central:MinnesotaIowa _ .MissouriNorth DakotaSouth DakotaNebraskaKansas

South Atlantic:DelawareMarylandDistrict of ColumbiaVirginiaWest VirginiaNorth CarolinaSouth CarolinaGeorsriaFlorida

East South Central:

AlabamaIVTississinni

West South Central:Arkansas

OklahomaTexas

Mountain:

Idaho

ColoradoNew Mexico

UtahNevada

Pacific:

OregonCalifornia

Total

Banks suspended

Number

Allbanks

1

1

6

34

138

10

4265

232

41

421

4521

11

1

7

1

23

128

Members

Na-tional

1

1

112

5

1

1

1i

I1

12

20

State

1

1

1

3

Non-mem-bers

1

4

23

117

10

4215

232

41

411

35

1

7

1

11

105


Allbanks

522

1,466

4,871

2,1711,1324,7803,586

5 4,458

807513, 521

953

2,832655317

3,78049

1,489438759

770904716455

644142

440

1,690

128

227902

55, 604

Members

National

1,466

552

1,413580

2,667

8,854

198

135

316455

644142

126390

17, 938

State

551

751

400

1,702

Non-mem-bers

522

3,768

758552

2,1132,835

5 4,458

8075 4,667

953

2,832655317

3,78049

1 489240759

635904

440

1,690

128

101512

35,964

Banks reopened

Number

Allbanks

1

1116

2

1

1

42

20

Mem-bers i

1

1

21

5

Non-mem-bers

_____

2 111

35

42

1

1

21

15


Allbanks

507

13,400276126

12,138

27,377

253

316

6, 2607,481

68,134

Mem-bers i

507

8,540

4,8101,821

15,678

Non-mem-bers

U3,400276126

3 3,598

4 27,377

253

316

1,4505,660

52,456

* Represents national banks only.2 At time of suspension this was a State member bank.3 At time of suspension three of these banks, with deposits of $2,805,000, were State member banks.* At time fo suspension one of these banks, with deposits of $26,858,000, was a State member bank.5 Exclusive of deposits of 1 bank for which deposit figures are not yet available.



BANK SUSPENSIONS AND BANKS REOPENED—Continued

BANK SUSPENSIONS AND BANKS REOPENED, BY STATES, JANUARY 1 TO JULY 31, 1932[Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of supensions during

given period include any banks which may have subsequently reopened. Figures for banks reopened during given period include reopeningsboth of banks closed during that period and of banks closed in prior periods. Deposits (including those of .banks reopened) are as of date ofsuspension where available, otherwise as of the latest available call date preceding suspension]

[Figures included for latest month are preliminary and subject to revision]

State

New England:Maine.New Hampshire..VermontM assachusettsRhode IslandConnecticut

Middle Atlantic:New YorkNew JerseyPennsylvania

East North Central:Ohio .Indiana.Illinois __MichiganWisconsin . .

West North Central:MinnesotaIowaMissouri __ _ .-North DakotaSouth DakotaNebraskaKansas

South Atlantic:DelawareMarylandDistrict of ColumbiaVirginiaWest Virginia.. _-North Carolina - .South Carolina. . .GeorgiaFlorida

East South Central:Kentucky -TennesseeAlabama - .Mississippi

West South Central:ArkansasLouisianaOklahomaTexas

Mountain:Montana --Maho _.

* WyomingColoradoNew MexicoArizona,.,UtahNevada

Pacific:WashingtonOregonCalifornia

Total

Banks suspended

Number

Allbanks

5

6

107

31

2055

1595219

29915958

2640

13483

2814125

3619109

97

1623

491

16

6143

221626

946

Members

Na-tional

1

1

84

11

29

4032

11681137

11

115341

10241

1146

23

4

1

41

12

191

State

1

11

88

31

1

1

1

2

11

2

2

12

37

Non-mem-bers

3

5

22

19

1846

1114117

28725047

2233

2472

231174

251748

75

1215

261

12

5123

171314

718


Allbanks

29,678

43,038

15,31612, 67932, 422

8,14133, 800

106,35019, 7583 7, 378

4,9543 51, 065

18,127573

3,6173,6176 922

7921,7363,780

809349

13, 78529,1442,5511 853

10, 7904,5124 4641,458

8282,4503,8307,188

8731,155

6062,841

6,4479,848

981

25, 0013,784

17, 929

557,219

Members

Na-tional

1,334

2,850

12, 0168,9905,812

2,07010,18239,1801,9841,046

20715, 8569,109

92295408

2,925

792839

252142

9,9673,239

506432

4,1861,3992,405

455

85680

1,6263,282

306517

652

354

3,873126

10,284

160,255

State

10, 258

797551

12, 7453,460

5,561455

212

358

2,347

1 096

126531

150

863

1,1851,020

41, 715

Non-mem-bers

18, 086

40 188

3,3002,892

26, 559

6,07123, 61854,42514, 3143 6, 332

4,7473 29, 648

8,563481

3,3222,9973 997

8973,780

557207

3,81825 905

1,6871 421

4,2573 113

9631,003

6171,2392 2043,756

567638606

2 189

6 0938 985

981

19, 9432 6387,645

355, 249

Banks reopened

Number

Allbanks

1

1

343

69

171910

3754

101

16

28

11513

71

10

6549

1

121

187

Mem-bers *

1

1

123

1

422

11

1

133

1

11

3

1

34

Non-mem-bers

22

259

13217

8

32 644

101

6

158513

61

10

524

46

121

153


Allbanks

402

1,869

5,1836,7001,756

35, 3674,2144,106

18, 2355,807

99231,3275,284

597

1 976247

7922 100

59110, 32110, 7611 343

309662

996280

3,891

9622,379

4025,558

340

3275 8411,106

173,023

Mem-bers »

402

1,869

5074,5681,756

577

1,3159,6722,220

1,4091,918

792

5675,4033,807

160

339680

4,231

340

42, 532

Non-mem*bers

4,6762,132

2 34,7904,2142,791

2 8, 5633,587

9922 29,918

3,366597

1 976247

2 100

244,9186,9541 343

309662

836280

3,891

62321,699

4021,327

3275 8411,106

130,491

1 Represents national banks only, except as follows: 1 State member in Illinois with deposits of $628,000; 1 in Arkansas with deposits of $339,000:and 1 in Utah with deposits of $340,000.

2 At the time of suspension 3 banks in Ohio with deposits of $32,591,000, 6 in Michigan with deposits of $5,111,000,1 in Iowa with deposits of$26,858,000, and 1 in Louisiana with deposits of $531,000 were State member banks.

3 Exclusive of deposits of 1 bank for which deposit figures are not yet available.

Back figures—See Bulletin for February, 1932; also annual reports for 1930 (Table 118), 1929 (Table 112), 1928 (Table 116), 1927 (Table 112),1926 (Table 100), and 1925 (Tables 97 and 98). .



INDUSTRIAL PRODUCTION, BY INDUSTRIESllndex numbers of the Federal Reserve Board. 1923-1925 average=100]

Industry


June M a y

1931

June

Adjusted for seasonal variation

1932

June M a y

1931

June

Manufactures—TotaLIRON AND STEEL

Pig ironSteel ingots

meat packing _.

TEXTILESCotton consumptionWool

ConsumptionMachinery activityCarpet and rug-loom activity..

SilkDeliveriesLoom activity

FOOD PRODUCTS.Slaug

3ogs.CattleCalvesSheep

Wheat flourSugar meltings

P A P E R AND PRINTINGWood pulp and paper

NewsprintBook paperWrapping paperFine paperBox boardWood pulp, mechanical.Wood pulp, chemical

Paper boxesNewsprint consumption

LUMBER

TRANSPORTATION EQUIPMENT:AutomobilesLocomotivesShipbuilding

LEATHER AND PRODUCTSTanning

Sole leatherUpper leather-

CattleCalf and kipGoat and kid

Boots and shoesCEMENT AND GLASS:

CementGlass, plate -

NONFERROUS METALS i—Tin deliveries.FUELS, MANUFACTURED:

Petroleum refining _GasolineKeroseneFuel oilLubricating oil

Coke, by-productRUBBER TIRES AND TUBES

Tires, pneumaticInner tubes

TOBACCO PRODUCTSCigarsCigarettes

Minerals-Total..Bituminous coalAnthracite coalPetroleum, crudeIron oreZinc ----LeadSilver

252126

59613739412588

10752

8382797995

15375

90

131105

29

548

100

84

146186

73919950

129134

93

12869

173

4037

107P 6365040

r 87939779

100150

r 7979

928370936679

' 9 4

141111

146187

82948555

919562

11166

145

65

4349

1103

4048

' 35

83

61566191878494835511212196838377831001517498108100811118988118869215712248

749

135958879

798011999

1159192

158205711C69089130135941449018985666612490525947

25222663643943

(2)(2)

97121

(2)83837684911568583

*>89

67

90

12610628

47880

P82

(2)

88

5258

(2)

146

79(2)()

511071117811863157P63

4542105"3374941

1018288

153

79141107

29

146I

86II

56727551

11064

144

674949

1092

3949

82

56' 6 1

969089

105

122136

838375

83

107

79111

1178091

151123

6510

108

9990

8583

119105

159

76

90108111

79

13283

171

7475

12246545847

p Pre l iminary ,i Includes also lead and zinc; see " M i n e r a l s . "

r Revised.2 Without seasonal adjustment.NOTE.—For description see BULLETIN for February and March, 1927. For latest revisions see page 495 and BULLETIN for March, 1932, pp. 194-196



FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES[Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927. 1923-1925 average=100]

Industry

Factory employment

Without seasonal adjustment Adjusted for seasonal variation

1932

June May

1931

June

1932

June May

1931

June

Factory pay rolls


1932

June M a y

1931

June

Total.IRON AND STEEL AND PRODUCTS

Steel works and rolling millsHardwareStructural-ironworkHeating apparatus

Steam fittings,.-Stoves

Cast-iron pipeMACHINERY

Foundry and machine-shop products.Machine toolsAgricultural implementsElectrical machinery

TEXTILES AND PRODUCTSA. Fabrics

Cotton goodsWoolen and worsted manufactures.

Woolen and worsted goodsCarpets and rugs

Hosiery and knit goodsSilk manufacturesDyeing and finishing textiles

B. Wearing apparelClothing, men'sShirts and collarsClothing, women's __Millinery

FOOD AND PRODUCTSBakingSlaughtering and meat packingConfectionery.Ice creamFlour .Sugar refining, cane

PAPER AND PRINTINGPrinting, book and jobPrinting, newspapers and periodicals...Paper and pulpPaper boxes

LUMBER AND PRODUCTS.Lumber, sawmillsLumber, millworkFurniture

TRANSPORTATION EQUIPMENT._Car building and repairing. .AutomobilesShipbuilding

LEATHER AND MANUFACTURES_Boots and shoesLeather

CEMENT, CLAY, AND GLASS PRODUCTS..Clay products

Brick, tile, and terra cottaPottery

GlassCement

NONFERROUS METAL PRODUCTS.Stamped and enameled ware..Brass, bronze, and copper

CHEMICALS AND PRODUCTSChemicals and drugs.-Petroleum refining. _Fertilizers.

RUBBER PRODUCTSAutomobile tires and tubes..Rubber boots and shoes

TOBACCO MANUFACTURESCigars and cigarettesChewing and smoking tobacco, snuff.

59.1

54.857.953.454.643.437.349.135.7

51.347.642.929.163.2

57.258.257.444.543.848.278.742.380.754.743.462.970.647.0

80.986.881.767.686.974.272.7

82. Q80.794.876.171.2

37.833.837.449.3

50.841.659.678.5

70.572.761.6

45.039.631.860.956.942.8

48.627.655.8

74.278.078.135.8

67.070.357.1

69.068.672.0

61.357.260.754.356.645.437.452.938.454.450.344.237.466.962.062.363.646.145.250.979.847.384.761.346.463.484.355.181.087.282.367.878.775.873.983.883.296.477.971.238.633.839.151.652.444.259.781.472.774.465.447.042.633.866.957.942.751.432.157.978.380.67a. 264.166.069.156.967.366.970.2

75.072.674.468.081.663.560.366.467.473.968.181.257.787.476.777.977.072.072.171.486.269.397.373.656.983.197.664.088.496.785.580.292.776.478.492.795.3

103.084.183.454.348.855.869.263.554.072.691.779.780.875.167.063.356.581.674.966.365.443.772.886.790.291.148.975.678.367.879.981.766.0

60.0

54.858.053.254.243.237.048.934.851.047.143.229.363.258.558.757.945.444.649.478.542.981.758.143.364.980.747.981.185.182.175.375.776.671.482.881.895.176.273.937.933.037.152.150.041.358.077.674.376.963.443.438.029.660.755.540.948.726.956.176.479.677.452.467.068.961.169.468.973.5

56.559.853.757.045.137.152.437.654.149.844.136.366.962.462.463.946.846.250.479.147.184.962.548.864.286.650.883.287.785.275.475.178.973.584.384.196.278.074.039.033.338.854.950.243.954.779.475.877.967.045.841.131.966.357.141.950.830.957.679.781.978.470.465.867.759.968.467.972.9

76.0

72.674.667.780.963.259.966.165.873.467.481.858.187.478.678.777.773.473.473.286.070.298.378.356.785.8

111.565.388.794.985.989.380.878.877.293.696.5

103.384.186.654.447.555.173.162.453.670.790.683.985.577.464.460.452.681.473.063.365.442.673.289.692.190.271.875.776.872.480.482.167.3

43.6

26.025.428.731.825.423.427.320.032.327.525.422.945.635.837.034. 326.827.423.456.727.159.333.422.640.545.732.671.475.973.154.378.662.660.972.970.092.954.360.320.918.622.425.140.732.947.167.445.044.347.4

27.319.014.231.543.228.532.020.035.563.261.172.128.155.159.437.952.251.260.9

46.330.430.830.035.727.023.430.522.835.930.727.631.749.641.540.339.728.729.127.057.831.259.244.026.3

40.4

72.977.075.555.774.566.662.877.074.696.759.761.022.219.324.127.245.937.353.571.045.744.450.330.222.416.238.646.230.034.522.338.166.965.672.546.048.750.441.648.447.159.6

67.6

57.658.852.269.048.045.950.155.662.455.363.544.681.366.769.466.261.662.856.383.663.291.361.148.468.877.754.689.795.490.476.996.874.674.496.697.6

113.477.683.244.640.447.551.958.853.062.191.466.764.774.2

54.444.439.258.468.364.859.138.165.284.183.291.149.472.477.751.468.669.164.2

NOTE.—For description of these indexes see BULLETIN for November, 1929, pp. 706-716, and November, 1930, pp. 662-677.



WHOLESALE PRICES, BY GROUPS OF COMMODITIES[Revised index of Bureau of Labor Statistics (784 price series); 1926=100]

Year and month

19271928192919301931 _ _.

1Q31—JuneJuly _AugustSeptemberOctoberNovemberDecember -

1932—January

MarchAprilMay

FARM PRODUCTS:GrainsLivestock and poultry..Other farm Droducts

FOODS:Butter, cheese, and miltCereal productsFruits and vegetablesMeatsOther foods. - .-

Allcom-modi-ties

95.496.795.386.473.072.172.072.171.270.370.268.667.366.366.065.564.463.9

HIDES AND LEATHER PRODUCTS:Boots and shoes -Hides and skinsLeatherOther leather products .

TEXTILE PRODUCTS:ClothingCotton goodsKnit coodsSilk and rayonWoolen and worsted goods...Other textile products

FUEL AND LIGHTING MATERIALS:Anthracite coal --Bituminous coalCokeElectricityGasPetroleum products

METALS AND METAL PRODUCTS:Agricultural implementsIron and steelMotor vehicles _Nonferrous metals

BUILDING MATERIALS:Brick and tileCementLumber _.Paint materialsPlumbing and heating.Structural steelOther building materials

CHEMICALS AND DRUGS:ChemicalsDrugs and Pharmaceuticals..Fertilizer materialsMixed fertilizers

HOUSEFURNISHING GOODS:FurnishingsFurniture

MISCELLANEOUS:Auto tires and tubesCattle feed...Paper and pulpRubber, crudeOther miscellaneous ._

prod-ucts

9<).4105.9104[.988.364.865.46461

9? fi

60.558.858.755.752.850) 650.249.2

i H45.7

Foods

96.7101.099.990.574.673.374.074.673.773.371.069.164.762.562.361.0fiy 3>3.8

Other commodities

Total

94.092.991.685.275 074.173.974.273.972.973.572.371.771 370.970.970.470.1

Hides ancleather

products

107.7121.4109.1100.086.188.089.488.785.082.581.679.879.378.377.375.072.570.8

1 Textileproducts

95.695.590.480.366.366.666.565.564.563.062.260.859.959.858.757.055.653.9

Fuel andlightingmaterials

88.384.383.078.567.562.962.966.567.467.869.468.367.968.367.970.270.771.6

Metalsand metalproducts

96.397.0

100.592.184.584.484.383.983.982 882.682.281.880.980.880.380.179.9

1931

Apr.

59.570.373.4

80.674 376.279.969.9

94.862.088.4

101.6

76.971.460 743.469.076.2

86.484.483.793.796.137.4

94.384.194.567.5

83.981 073.481.286.684.386.9

85.163.480.683.5

84.291.9

46.981.282.113 389.3

M a y

59.664.171.5

78.174.676.174.467.9

94.862.688.1

101.4

76.969.260 741.468.576.7

87.583.983.798.099.035.9

94.383.894.563.3

83.779.769.480.286.684.386.3

83.963.280.582.8

83.690.4

46.967.981.513.788.5

June

56.061.970.8

78.874.376.471.368.5

94.665.587.8

101.4

76.367.659 841 968.075.5

88.8

81.598.6

101.930.7

94.283.594.261.2

83.777.768.580.086.684.385.4

82.562.679.882.4

83.489.8

46.061.180.713.388.2

July

49.063.071.3

80.671.574.273.470.6

93.572,789.8

101.4

76.166.860 043.867.475.2

90.883.581.597.9

103.530.3

94.282.794.76L4

83.475,867.279.686.884.383.7

82.462.178.780.2

82.889.1

46.055.880.613.288.6

Aug.

44.867.067.3

82.270.973.476.069.6

93.569.190.3

101.4

75.964 059 243 767.474.4

92.283.781.598.4

103.237.5

94.382.494.760.1

82.975.866.978.483.881.783.7

80.561.974.478.7

81.788.6

46.050.'880.611.286.4

Sept.

44.261.065.4

84.670.371.073.668.5

93.558.683.4

101.1

75.561.559.243.565.774.1

94.383.981.5

100.6103.438.9

94.182.395.459.0

82.675.866.977.682.681.782.6

79.861.774.277.6

81.284.6

46.044.480.710.686.7

Oct.

44.357.664.2

86.170.668.271.169.7

93.150.080.7

101.1

73.959.759.241.764.672.4

94.283.681.5

102.1100.839.2

85.681.795.454.9

82.675.165.277.081.681.782.0

79.761.670.277.2

79.882.4

46.049.480.510.286.9

Nov.

51.355.763.1

80.773.165.167.768.0

92.549.078.8

101.1

72.658.159 041.864.272.5

94.283.781.4

103.4100.142.5

85.581.595.254.7

81.474 665.977.581.481.781.9

80.661.370.177.7

79.782.3

46.059.880.89.6

86.7

Dec.

47.051.761.2

79.872 263.563.267.2

89.248.878.699.7

70.856.458.539.063.971.3

94.883.881.1

104.198.239.6

85.581.095.253.8

80.074.665.876.679.981.781.5

80.861.070.177.1

76.680.6

40.853.980.8

9 585.9

Buildingmaterials

94 794.195 489.979.279.378.177.677.076.176.275.774 873.473.272.571.570.8

Chemi-cals anddrugs

96.895.694.289.179.379.478.976 976.375 676.176.175.775.575.374.473.673.1

House-furnish-

ing goods

97.595.194.392.784.986.485.784.982.781.080.978.577.777.577.176.374.874.7

Miscel-laneous

91.085.4-82.677.769.869.769.768.368.266.6.68.766.865.6-64.764.764.764.464.2

1932

Jan.

46.753.454.8

67.871.062.261.961.9

88.849.077.598.9

70.755.855.837 763.370.7

94.884.48-0.5

107.598.638.8

85.579.995.355.4

79.375 265.675.474.177.381.0

80.660.669.975.5

76.179.5

39.753 078.0

9 385.2

Feb.

46.150.352.7

64.169.661.859.559.4

88.546.176.598.8

70.656.455.836.563.169.7

94.8

Mar.

43.551.452.1

64.268.362.361.457.1

88.544.773.498.8

69.056.254.933.562.769.5

89.984.3 83.580.4

104.898.038.6

85.179.395.352.7

79.375 362.975.165.877.980.2

80.860.169.873.7

75.979.5

39.548.276.78 6

84.4

80.4104.497.539.8

85.079.795.350.5

79.375.061.575.464.479.780.6

80.959.768.673.2

75.479.1

39.252 476.8

7 284.5

Apr.

44.549.251.2

61.668.262.359.855.8

88.440.867.298.0

68.755.151.931.359.768.2

85.782.779.8

103.599.145.5

85.080.193.849.3

78.475.060.074.764.481.780.2

79.758.970.171.1

75.477.4

39.253.476.8* 6

84.5

May

42.644.449.6

59.668 161.556.554.9

88.435.760 697.9

68.252 950 529 158.367.2

85.682 077.1

106 1103 047.2

84.980.093 848.3

77.475 059 573.964.481 778.2

79.158.769 469.0

75.574.1

39.245 976.5

6 784.6

June

37.746.748. 2

57.466 862.456.055.4

87 532.558 7"96.4

67.451 049 627 555. 066.7

85 3,81 8-76.9

48.2

84.979.893 847.5

76.177 157 673.366.781 777.6

78.658.368 069.0

75.474.0

39.642 176.2

5 884.6-

Back figures.—For revised indexes of groups see BULLETIN for March, 1932, p . 199; indexes of subgroups available at Bureau of Labor Statistics.



BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING[Value of contracts in millions of dollars; figures for 37 States East of the Rocky Mountains, as reported by the F. W. Dodge Corporation]

Month

JanuaryFebruaryMarch. _AprilMayJuneJulyAugustSeptemberOctober _NovemberDecember _

Year. .

Total

1931

228.0235.4370.0336.9306.1316.1286 0233.1251.1242.1151.2136.9

3,092.8

1932

84.889.0

112.2121.7146. 2113.1

Residential

1931

54.477.9

100.995.988.972.763 960 254.660 545.336. 2

811.4

1932

27.524.433.228.925.623.1

Factories

1931

10.17.3

20.611.316.38.9

10 44.7

11.08 94.22.5

116.2

1932

3 44.44.54.53.02.1

Commercial

1931

26 927.136.226.225.726.928 419 128.641 314 110.6

311.1

1932

9 110.110.612.912.213.0

Public works andpublic utilities

1931

96 879.0

152.2133.4109.6141.6117 473 386.583 048 050 5

1,171.1

1932

24 128.329.947.361.750.1

Educational

1931

19 416.724.323.023.822.526 119 321 214 711 86 1

228.8

1932

4 410.89.8

10.76.57.2

All other

1931

20 527.335.747.141.843.639 856 549 333 827 831.0

454.3

1932

16 311.024,217.537.217.6

BUILDING CONTRACTS AWARDED, BY DIS-TRICTS

{Value of contracts in thousands of dollars; figures for 37 States east ofthe Rocky Mountains, as reported by the F. W. Dodge Corporation]


BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallas

Total (11 districts)

1932

June

10,09828, 234

9,51912, 7497,7857,46318, 3565,7685,7244,0093,369

113,075

M a y

11,20026, 506

8,06414,07230, 5406,884

24,446

A 0876,0054,628

146, 221

1931

June

24, 50776,15216, 66425,48423, 63618, 28837,49832, 55412,49016,36332, 511

316,148

COMMERCIAL FAILURES, BY DISTRICTS(Amounts in thousands of dollars; figures reported by R. G. Dun Co.]


BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis-.Kansas City..Dallas...-San Francisco.

Total . . .

Number

1932

June

29654513029617912439013287108112289

May

32270110324016513432912877

13195

363

2,788

1931

June

19937086138112135327133468361303

1,993

Liabilities

1932

June

6,22320, 3784,6527,8956,9962,18513,4981,987738

3,2382,2836,857

76,931

M a y

4,98230,215

5,3016,7102,0332,351

11,1438,063

5903,0282,3307,018

83, 764

1931

June

2,7007,0492,337

10,9692,3943,0148,9502,615

3662,5021, 5237,237

51, 656

BUILDING PERMITS ISSUED, BY DISTRICTS[Value of permits in thousands of dollars]


Boston.. __ _ __. _New YorkPhiladelphia __ClevelandRichmond-AtlantaChicagoSt. Louis . . .MinneapolisKansas City __DallasSan Francisco

Total

Numberof cities

1422141215151959

149

20

168

1932

June

2,4008,1592,2991,8504,3721,0952,146

772719

1,2541,0904, 031

30,187

May

1,6927,7331,3914,1643,6991,1602,988

6151,4251,238

9845,235

32, 324

1931

June

7,90631, 619

3,1895,6295,9571,6226,1751,5845,1834,2063,1897,440

83,698

BANK DEBITS[Debits to individual accounts. In millions of dollars]

New York City . . . -Outside New York City

Federal reserve district:BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. Louis .MinneapolisKansas CityDallasSan Francisco

Total

Numberof centers

1140

117

10137

1521

59

151018

141

1932

June

14, 202r 12, 901

1,34614,741

1, 2561,292

488564

3,373696428741370

••1,808

«• 27,103

M a y

12, 91312,498

1,40713, 444

1,1941,281

471594

3,120693415703366

1,723

25, 411

1931

June

25, 89319, 406

2,08026, 6652,0042,094

664864

5,123997609

1,039500

2,660

45,299

p Revised.



JULY CROP REPORT, BY FEDERAL RESERVE DISTRICTS[Based on estimates, by States, for July 1, 1932, as reported by the Department of Agriculture]

[In thousands of units]


Corn

Production,1931

Estimate,July 1,1932

Total wheat

Production,1931


Winter wheat

Production,1931


Spring wheat

Production,1931

Estimate,July 1, 1932

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

Total . . .

Bushels7,929

25,83755,305

206,456146,866165,412887,842383,052173, 273393,884109,442

7,973

Bushels7,564

23,03745,025

168, 658129,148170,878986, 111381, 668349,927608,144115,944

9,746

Bushels65

6,19718, 76456,08630,1944,61277, 25966, 58682,089402,12160,04190,190

Bushels82

4,30413,17634, 22418,8133,027

47,47933, 685

275, 039160,87932,900

113, 363

Bushels Bushels

6,01218, 57755,83230,1944,61273, 63666, 2608,943

398,09659,87667, 424

4,13113,08134,06718,8133,027

44, 23333, 47619, 292

153, 22632, 74875, 668

Bushels65

185187254

Bushels82

17395

157

3,623326

73,1464,025

16522, 766

2,563, 271 2,995,850 14, 204 736,971 789,462 431, 762 | 104, 742

3,246209

255, 7477,653:

15237, 695.

305,209

Oats Tame hay Tobacco

Production,1931


Production,1931


Production,1931

Estimate,Julyl, 1932

White potatoes

Production, Estimate,1931 July 1, 1932

BostonNew York___•__Philadelphia. . .ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis . - .Kansas C i t y . . .DallasSan Francisco.

Bushels6,359

25.81917, 68775, 24723,67114, 558

469, 97263,142

183, 049147, 71263, 02621, 795

Bushels7,370

21, 64414, 52653, 02518, 72411,140

510, 70641,478

321, 760147,16045, 46324,248

Tons3,3465,5632,3044,7422,9282,182

11, 9395,4587, 0397,270

99110,451

Tons2,5674,3621,8873,8632,8542,26912,8114,55110, 3798,821928

12, 967

Pounds39,043

1,462

Pounds27, 985

1,216

248, 729684, 996172, 95048, 904

395, 0165,0364,774

187, 651410, 918106, 96632, 563

285, 6702,6225,092

Bushels58, 47532, 65125, 21219, 77132, 60014, 53850,41812,47249,934 !27,780 i

5, 916 j45,751

Bushels54, 729'26, 21020, 52217, 78724, 30410,36954,44012,85664, 39045,175

5,25141, 736

Total 1,112,037 1, 217, 244 64, 213 68, 259 1, 600, 910 1,060, 683 375,518 377,7

NOTE.—Figures for 1931 are as revised in July, 1932.


FEDERAL RESERVE DISTRICTS

MINNEAPOLIS^S.DAK. I

4m*

l-«,.-'—\. si

i •'BOUNDARIES OF FEDERAL RESERVE DISTRICTS.-—BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES

® FEDERAL RESERVE BANK CITIES• FEDERAL RESERVE BRANCH CITIESO FEDERAL RESERVE BANK AGENCY


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