Federal Reserve Bulletin December 1939

FEDERAL RESERVEBULLETIN

DECEMBER 1939

Recent Gold and Capital Movements

Economic Controls in Foreign Countries

Amendments to Regulations F and H

Annual Report of Foreign Central BanksNetherlands and Argentine

***

BOARD OF GOVERNORS

OF THE FEDERAL RESERVE SYSTEM

CONSTITUTION AVENUE AT 20TH STREET

WASHINGTON

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

TABLE OF CONTENTS

PageReview of the month. Recent gold and capital movements; Economic controls in foreign countries 1039-1049National summary of business conditions 1050-1051Summary of financial and business statistics 1053Law Department:

Financial Transactions under Neutrality Act of 1939 1054Amendments to Regulation F—Trust Powers of National Banks 1054Amendments to Regulation H—Membership of State Banking Institutions in the Federal Reserve

System : 1054-1064Number of banks and branches 1933-1939 1065Analysis of changes in number of banks and branches; January 1-September 30, 1939 1066Restoration of Netherlands Government's power to prohibit the export of gold 1067Annual Report of the Netherlands Bank 1068-1076Annual Report of the Central Bank of the Argentine Republic 1077-1094Financial, industrial, and commercial statistics, United States:

Member bank reserves, Reserve bank credit, and related items 1096Federal Reserve bank statistics 1097-1101Reserve position of member banks; deposits in larger and smaller centers 1102Money in circulation 1103Gold stock and gold movements; bank suspensions; bank debits 1104All banks in the United States.... 1105All member banks 1106-1107Condition of reporting member banks in leading cities 1108-1111Acceptances, commercial paper, and brokers' balances 1112Federal Reserve bank discount rates 1113Money rates and bond yields 1114Security markets 1115Treasury finance 1116-1117Governmental corporations and credit agencies; Postal Savings System 1118-1119Production, employment, and trade 1120-1128Wholesale prices 1129Crop report 1130Statistics for Federal Reserve chart book 1131-1132

International financial statistics:Gold reserves of central banks and governments 1134Gold production 1135Gold movements, 1135-1136International capital transactions of the United States 1137-1139Central banks 1140-1143Bank for International Settlements . 1144Money rates 1144Discount rates of central banks 1145Commercial banks 1145-1146Foreign exchange rates 1147Price movements:

Wholesale prices ^ 1148Retail food prices and cost of living 1149Security prices 1149

Federal Reserve directory:Board of Governors and staff; Open Market Committee and Staff; Federal Advisory Council 1151Senior officers of Federal Reserve banks; managing directors of branches 1152

Index to volume 25 1153

II


FEDERAL RESERVE BULLETINVOL. 25 DECEMBER, 1939 No. 12

REVIEW OF THE MONTH

From the outbreak of war to the middleof November acquisitions of foreign gold by

the United States TreasuryRecent gold and through import and releasecapital movements _

from earmark averaged$50,000,000 a week as against a weekly aver-age of $60,000,000 in the preceding twelvemonths when the gold movement reached itspeak. The current movement reflects toa large extent the need of foreigners fordollars with which to pay for the excess ofexports from the United States, whichamounted to $107,000,000 in September andreached a new high level for recent years of$117,000,000 in October. Reported figuresshow little net movement of capital since theend of August. A small inflow of funds fromneutral countries has been offset by utiliza-tion of dollar deposits and selling of Amer-ican securities by belligerents. Transactionsnot covered by current statistics were appar-ently substantial.

When war broke out the third large flightmovement of capital from Europe to theUnited States in less than a year was in prog-ress. The first of these movements occurredin September and October 1938 and was con-nected with the events immediately precedingand following the Munich settlement; the sec-ond began in March 1939 following the Ger-man move on Prague; and the third com-menced early last August. In a space of onlytwelve critical weeks—four in September1938, five in March and April of this year,and three immediately preceding the outbreakof war—$1,600,000,000 of foreign gold cameto the United States. Largely as a result of

the three crisis movements the inflow both ofgold and of capital to the United States inthe twelve months ending August was con-siderably larger than at any previous time.It brought the total inflow of gold since Jan-uary 1934 to $9,000,000,000 and the recordednet capital inflow to $5,300,000,000. Mostof the difference between these two figuresis accounted for by the $2,600,000,000 excessof merchandise exports of the United Statesand by transactions that have not been iden-tified. Of the recorded capital movement athird represented the return of Americancapital from abroad and the accumulationof dollar balances by foreign official institu-tions; the remainder represented privatefunds sent here by foreign nationals for de-posit in banks or for the purchase of Ameri-can securities. The full movement of funds,including unrecorded transactions, may havebeen considerably larger.

Half of the private movement of foreigncapital to the United States in the period

since early 1934 cameBritish foreign from t h e United King-exchange regulations

dom, France, and thecountries of the British Empire. To bringa halt to this type of capital outflow and toobtain control over funds sent abroad in thepast the British and French Governmentshave imposed strict foreign exchange regula-tions. In the United Kingdom the export ofcurrency and gold has been subjected to li-cense and the business of dealing in foreignexchange has been centralized in the Bank ofEngland and the principal commercial banksacting under its supervision. Initially allpurchases of foreign exchange, and all trans-fers of sterling from the accounts of residents

1039


1040 FEDERAL RESERVE BULLETIN DECEMBER 1939

of the United Kingdom to those of non-resi-dents, were prohibited except on applicationto an authorized dealer. Transactions forthe purpose of liquidating old contracts, de-fraying reasonable travelling expenses, ormeeting reasonable business requirementssuch as payments for imports, insurance pre-miums and claims, or freight charges, werefor the most part freely approved, but otherswere subject to special review. Subsequentlythese provisions were somewhat modified, themost important new ruling providing thattransactions with British territories otherthan Canada, Newfoundland, and HongKong were not subject to restriction. Ex-change regulations adopted throughout theEmpire were essentially similar to those ofthe United Kingdom.

As a further limitation on the power toexport capital, residents of the United King-dom are required, with certain exceptions,to sell to authorized dealers for account ofthe Government all receipts of currencies ofthe United States, Argentina, Belgium, Can-ada, France, Netherlands and NetherlandsEast Indies, Norway, Sweden, and Switzer-land. Both sales and purchases of exchangeon these countries in London must be carriedout at the official buying and selling ratesfixed by the Bank of England; other exchangedealings take place at rates established in themarket. The official buying and selling ratesfor dollars are $4.04 (originally $4.06) and$4.02 respectively.

While non-residents of the United Kingdomare subject to the same restrictions as resi-dents in the matter of purchasing foreignexchange through authorized dealers at theofficial or market rates in London, they areapparently not prevented from selling theirsterling abroad. It is this provision that hasmade it possible for foreigners to deal insterling exchange outside London at vary-ing rates. The chart shows that the rate forsterling in New York, for example, has notgenerally remained within the spread of theofficial buying and selling rates in London.

Earlier in the year, before the war crisisreached its peak, fluctuations in sterling hadbeen held within a narrow range by officialgold operations, but on August 25 the BritishFund withdrew its support and the rate fell

EXCHANGE, RATES IN NEW YORK

AUGUST - NOVEMBER, 1939

AUG. SEPT. OCT. NOV.

1939

Certified noon buying rates for cable transfers.

sharply. For several days it moved errati-cally in an uncontrolled market. When thenew exchange regulations and official ratesfirst became effective the New York quota-tion steadied at the new level, but it subse-quently turned irregularly lower. Quotationsin New York and other foreign centers, how-ever, apply to only a part of the total volumeof transactions; the rest are carried out inLondon at the official rates.

The chart also shows the trend of NewYork quotations for the Canadian dollar andthe Netherlands guilder. The former is theonly British Empire currency which has notclosely followed the course of sterling; thelatter is representative of several currencies,including the Swiss franc and Swedish krona,


DECEMBER 1939 FEDERAL RESERVE BULLETIN 1041

which have been held relatively steady interms of the dollar.

Besides prohibiting the current export ofcapital, the British regulations contain pro-visions concerning certain assets acquiredbefore the war began. Under these provi-sions residents of the United Kingdom whoare owners of gold or of foreign exchangedenominated in the currencies of the specifiedcountries mentioned above must offer suchholdings to the Treasury unless it can beshown that they are required for approvedpurposes. Stocks, bonds, and other securitiespayable in the specified currencies can besold or transferred by residents only withthe permission of the Treasury, and theTreasury is given power to acquire such se-curities at some future time. Acting underthis authority the Treasury has requisitionedholdings of the Canadian 3!/2 per cent ster-ling loan of 1930-1950, amounting to about£28,000,000; this will make it possible forthe Canadian Government to redeem theseobligations in advance with part of the pro-ceeds of a $200,000,000 issue of 2 per centtwo-year notes sold to banks in Canada, andwill provide the British authorities with asubstantial amount of Canadian exchange.There is no evidence that other securitieshave yet been requisitioned but sale of securi-ties in foreign markets has been permittedin certain cases on condition that the foreignexchange proceeds be delivered to the Treas-ury. There has been some selling of thischaracter in the United States.

To enable the Treasury to pay for foreignassets acquired under the new regulationsthe previous limit of £575,000,000 on the bor-rowing power of the Exchange EquilizationAccount has been removed.

The export of capital from France in anyform has been prohibited. The regulations

forbid the purchaseFrench foreign # abroad of any propertyexchange regulations

or securities. All foreignexchange received for exports or servicesabroad must be returned to France, and the

export of any holdings of securities, claimsto foreign exchange, and similar assets, isforbidden. The regulations are administeredby an Exchange Bureau operated by theBank of France, and foreign exchange deal-ings are centralized in the Bureau and banksacting under its direct supervision. Ex-change will be made available for necessaryand approved commercial transactions, forpayment of debts arising from transactionsundertaken before September 10, 1939, andfor certain other purposes.

The offer to the authorities of gold andforeign balances held at the outbreak of warhas not been required in France as it has inEngland. All such holdings as well as for-eign securities held abroad on December 31,1939, and in some cases foreign assets held inFrance, must be declared before January15, 1940, however. Dealings in foreign se-curities have not been restricted, but ownersof foreign assets subject to declaration mustbe prepared to explain transactions nego-tiated after December 31, 1939, and the for-eign currency proceeds of security sales mustbe turned over to the Exchange Bureau.

Complete figures on the foreign assets ofthe belligerent countries are not available.

It is believed, however,Foreign resources t h a t t h e i r holdings in theof the belligerents • i ,

United States include alarge part of their more readily disposableresources—gold and short-term balances andsecurities denominated in the currencies ofcountries with relatively free and well-devel-oped financial markets. So-called direct in-vestments in controlled enterprises such asrailways and other utilities, mines, oil wells,manufacturing enterprises, agricultural prop-erties, and other real estate, which bulk largein British overseas investments, are less likelyto be readily marketable. Some of these as-sets are situated in the United States, asshown in the table below, but a larger part isheld in Empire and other countries not highlyindustrialized. There is a certain reluctance,moreover, to lose control of such enterprises



through sale to foreign interests. Obligationsissued by governments and municipalities inthe less highly developed countries, of whichBritish investors hold a considerable volume,do not possess the ready availability of goldand of balances and securities denominatedin dollars and other leading currencies, al-though they may be negotiable under certainconditions in the countries of issue.

The table below presents data on the esti-mated distribution at the end of August 1939of foreign balances and investments in theUnited States and of central gold reserves,together with estimated gold production in1938. Figures of dollar resources for datessince August have not yet been published.The first column of the table shows total hold-ings of the more readily available inter-national resources—gold, dollar balances, andAmerican securities. It does not includedirect investments in the United States. The

figure for all countries is nearly half again aslarge as the export surplus of the UnitedStates during the four years of the WorldWar, which amounted to $11,800,000,000.Approximately half of all foreign holdings ofgold and dollar resources at the present timeis under the control of the British Empire andFrance.

During the World War little more than aquarter of the export surplus of the UnitedStates was paid for through the sale in thiscountry of gold and American securities heldby foreigners, as shown in the first table onthe next page. The remainder was coveredby foreign borrowing in the United States.

The present situation differs in a numberof respects from that of twenty-five years ago.The Neutrality Act passed early in Novemberhas closed the American capital market tobelligerent Governments, and a number ofother potential borrowers are debarred under

FOREIGN HOLDINGS OF GOLD, DOLLAR BALANCES, AND AMERICAN INVESTMENTS

E N D OF AUGUST 1939

[Approximate figures in millions of dollars]

Country>r area

Belligerents:United KingdomFraneeCanada __ .Other British and French countries...

Total British Empire and F r a n c e -Germany

Neutrals:ItalyNetherlands .Switzerland _.U. S. S. R.Other European countriesLatin America 6

Far East and other8

Total neutrals .._

All foreign countries.

Gold, dollar balances, and securities

Total(cols. 2-4)

1

3,3303,5001,070

540

8,440160

2001,4001,2501,0002,7501,0901,110

8,800

17,400

Centralgold

reserves

2

i 2,00013,000

215540

5,7553 150

4 190770590

6 1,0002,190

660375

5,775

11, 680

Dollarbalances

3

595315355

*

1,26510

10160285

*430390355

1,630

2,905

Securities readily negotiable(market value)

Total(cols. 5-7)

4

735185500

1,420*

*

470375

*13040

380

1,395

2,815

Commonstocks

5

535130400

*

1,065*

*

270295

6530

335

995

2,060

Preferredstocks

6

1201560

*

195*

*

2530

*305

20

110

305

Bonds

7

804040

*

160*

*

17550

355

25

290

450

r Directand other

investments(variousbases ofvalue)

8

90080

560

1,540*

*

380170

12010

180

860

2,400

Annualgold

production(1938)

9

(2)165585

750

(2)

61851090

115

400

1,150

* Small amounts not published separately.1 Broad estimate, based on latest reported2 Less than $5,000,000.3 B d t i t b

Small amounts not published separately.Broad estimate, based on latest reported figures of Stabilization Fund holdings and data on gold movements.L th $5000000Less than $5,000,000.

3 Broad estimate, based on probable acquisitions of gold from private note-issuing banks in 1935, Austria in 1938, and Czecho-Slovakia in 1939,adjusted for net exports since 1935.

< Reported figure for December 1938.* Estimate based on scattered data.• Includes small amounts for British and French possessions


DECEMBER : FEDERAL RESERVE BULLETIN 1043

UNITED STATES BALANCE OP PAYMENTSJULY 1914-DECEMBER 1918

[In billions of dollars]

Item

Excess of merchandise exportsPayment effected through:

Gold imports 1.0Estimated European sales of American

securities 2.0

Total gold and securities-

Foreign loans sold to private investors inUnited States 1.5

Direct advances by United States Govern-ment after April 1917 _. 7.3

Total loans to foreigners _..

Estimated net service payments to foreigners.Net receipts from unidentified transactions

Pay-ments

3.0

0.4

12.2

Re-ceipts

11.8

0.4

12.2

$1,000,000—to the Exchange EqualizationAccount, and the fiduciary note issue of theBank was increased correspondingly. InFrance the requirement that the Bank ofFrance maintain a gold reserve equivalentto 35 per cent of its total sight liabilities wassuspended. The German Reichsbank has hadno effective legal reserve requirement since1931.FOREIGN HOLDINGS OF GOLD AND DOLLAR RESOURCES

1914 AND 1939[Approximate figures in millions of dollars]

Country

Total gold anddollar resources

11939 1914

Centralgold

reserves21914

Dollarresources

3 1914

Source: Review of Economic Statistics, Volume I, p. 251.

the Johnson Act. On the other hand, the dol-lar value of disposable international resourcesis much larger than in 1914. Estimates ofpre-war foreign investments in the UnitedStates are subject to a wide margin of error,and no classification by type is available. Thedata presented in the following table, how-ever, indicate that foreign dollar resourcesplus gold holdings are currently perhaps twiceas large as in 1914; and the dollar value offoreign gold production is three times aslarge. Finally, there is a greater readinessto use gold reserves. The belligerent powersas a group emerged from the World War withconsiderably larger central gold reserves thanthey possessed at its beginning. While thiswas directly attributable to the return of goldcoin from circulation, a considerable amountof which was, in fact, shipped abroad, it alsoreflected a desire to maintain gold reserves inpreparation for an expected return to the goldstandard after the war. In the present in-stance, however, none of the belligerents wason the gold standard at the outbreak of war,and the two holding most gold took immediateaction to make their entire gold reservesavailable for international use. In GreatBritain the gold holdings of the Bank ofEngland were transferred in their entirety—except for a nominal amount of less than

Leading belligerents:United KingdomFranceCanadaGermany

Other countries:NetherlandsAllother

All foreign countries

4,2303,5801,630

160

1,7808,420

2, 765- 3, 9651,080- 1, 280

4 1151,030- 1, 330

660- !2, 450- 2, 550

165

1156330

2,250

2, 600-3,800400- 600

(6)700-1,000

600- 800200- 300

19,800 8,100-10,100 3,600 4, 500-6, 500

1 Data from table on page 1042, including direct and other investments(column 8).

2 Figures are for end of December 1913. Monetary gold outside centralreserves in leading countries in 1914 has been estimated as follows, inmillions, of dollars: United Kingdom, 600; France, 965; Germany, 475;Kussia, 255; estimate for Russia from European Currency and Finance,Vol. II (Commission of Gold and Silver Inquiry, 1925); other estimatesfrom Currencies after the War (League of Nations, 1920).

3 Lower figure for all countries is estimate given in Review of EconomicStatistics, Vol. I, p. 230; higher figure and distribution by countriesbased on estimates of Sir George Paish, given in Report of NationalMonetary Commission, 1910.

4 Gold only; see note 5.6 No estimate available; included with "All other" countries.8 Includes $50,000,000 of gold held by Government as war reserve

(Annual Report of the Reichsbank, 1914) .£;, •

The financial measures taken by the UnitedKingdom and France are designed to con-

serve and mobilize theirEconomic controls international resources.m foreign countries . . . .

As such they constituteone segment of a broad economic and fiscalprogram for making the most effective useof available international resources and in-ternal productive facilities. This programinvolves the establishment of rigid controlsover imports and exports and over the inter-nal production, use, and prices of essentialcommodities. It also involves a sharp in-crease in governmental expenditures and arevision of the tax structure. As a supple-ment to their independent efforts the Britishand French Governments announced around



the middle of November a plan for coordinateaction in a number of fields; henceforth im-port programs will be drawn up jointly anddirection of their combined merchant fleetswill be centralized in London.

In Germany the control of internationaltransactions and of domestic business hadalready reached an advanced stage of devel-opment before the war began. The newmeasures, therefore, have constituted an ex-tension of the previously existing systemrather than a fundamental change.

The adoption of various types of controlmeasures has not been confined to the bellig-erents. A number of neutral countries withpreviously free markets have invoked ex-change restrictions, and others have tight-ened existing regulations. Few countriesnow have free exchange markets.

Neutral countries have also endeavored toprotect themselves against possible shortagesof essential commodities as a result of thewar. Nearly every country in Europe andsome on other continents have subjected ex-ports and imports to controls of varyingextent and severity. A smaller number,including the Netherlands, Switzerland,Sweden, Norway, and Denmark, have takensteps of an internal character. With differ-ences as to countries and commodities af-fected, maximum prices have been set, theallocation of raw materials to industry andthe disposition of finished products have beentaken under official supervision, and limitshave been placed on the use of certain com-modities.

Shortly before the outbreak of war theBritish Government prohibited the export of

many essential rawUnited Kingdom—control materials such asof imports and exports .

rubber and variousnon-ferrous metals. Subsequently nearly allexports were made subject to license or othertypes of regulation, and control over importswas established. The importation of passen-ger cars, various types of clothing, jewelry,and other manufactured articles of a luxury

or semi-luxury character was prohibited.For goods falling less definitely in this cate-gory, or which are manufactured in sufficientquantities in the United Kingdom, such astextiles, leather and rubber manufactures,and certain types of machinery, importationwas made subject to license. In the case ofmost raw or semi-finished industrial materi-als and foodstuffs the Government has eitherreserved the sole right of purchase abroador exercises indirect control through thegranting of foreign exchange permits, allocat-ing cargo space in British ships, regulatingthe distribution of supplies within the coun-try, or establishing maximum sterling pricesat too low a level to allow purchases abroad.

To ensure an adequate supply of certainessential raw materials and foods the BritishGovernment has negotiated special contracts.It has arranged, for example, to purchase theentire exportable surplus of wool, lead, andzinc from Australia and New Zealand for theduration of the war and has entered intomore limited contracts with Empire andother countries for bulk purchases of sucharticles as meat and dairy products and cop-per. British Empire production of manybasic commodities is well in excess of recentconsumption in the Empire and France.

Sharp declines in the volume of Britishexports and imports in September were tosome extent the result of temporary in-fluences such as the sudden disruption ofshipping schedules and the imperfect func-tioning of the new license-issuing machinery.They also reflected severance of trade withGermany and the war-time reorganizationof British business. The October figures forimports, and to a much smaller extent forexports, were higher than in September, butboth remained well below those of a year ago.

Internal trade in a considerable number ofimportant commodities has been subjected

to direct control in theUnited Kingdom. The type

and degree of supervision varies widely.Trading in many raw foods has been placed

Internal control



under the Ministry of Food, which exercisesvirtually complete authority over stocks, im-ports, and wholesale distribution. Maximumprices have been set in a number of instancesand plans for rationing are under way. Thusfar, gasoline, coal, gas, and electricity arethe only important commodities to be rationeddirectly, although civilian consumption ofwool and some other commodities is limitedthrough controlling the use of raw materialsby manufacturers. The limitation on gaso-line consumption is particularly severe; it isestimated that civilian consumption will bereduced 25 to 50 per cent.

Leading industrial products such as iron,steel, and other metals, wood, and textileshave been subjected to varying degrees ofregulation. In some instances reports onlyare required; in others maximum prices havebeen set, priority has been given to gov-ernment contracts, and sales of finishedgoods and purchases of raw material areregulated.

The new British tax schedule presented toParliament toward the end of September sup-

plements the other measuresof control. Its significance lies

in the fact that it will somewhat limit the ex-penditures of the civilian population, both byabsorbing income and by curtailing the con-sumption of particular commodities. It willthus facilitate the diversion of resources fromcivil to military uses, which is the major taskof a war-time economy. While estimates ofrevenue from the new taxes are, in the natureof the case, uncertain, it is expected that theywill bring in rather more than £100,000,000during the remainder of the current fiscalyear and over twice as much in 1940-41. Sub-stantial reductions are expected, however,in the revenue from certain other taxes,particularly those on gasoline and motorvehicles.

A large part of the added revenue will bederived from direct taxation. The standardrate of income tax was raised from 27^ to

New taxation

Governmentxpenditure

37V2 per cent and certain exemptions werelowered; surtax and estate tax rates wereraised; and a general excess profits tax wasimposed. Increases in indirect taxes affectedmainly alcoholic beverages, sugar, and to-bacco.

Revenue from the new taxes will cover com-paratively little of the increased expenditure

authorized by Parliament lastSeptember. The budget pre-sented in April provided for

£620,000,000 of defense expenditure in thefiscal year ending March 1940, an increase ofmore than 50 per cent over the precedingfiscal year. Subsequent authorizations raised;he defense appropriation to £750,000,000 andestablished the sum to be borrowed at £500,-000,000. With the outbreak of war the Gov-ernment received authority to spend an addi-tional £500,000,000. While all budget esti-mates in time of war are subject to greatuncertainty, it now appears that the Govern-ment may spend £1,200,000,000 for militarypurposes and air raid defense during the cur-rent fiscal year, or approximately three timesas much as in 1938-39. Total expendituremay amount to about £2,000,000,000, of whichabout half is expected to be borrowed. To as-sure the best possible terms for Governmentborrowing, private businesses have been pro-hibited from issuing securities without Treas-ury authorization.

Not all of the new Government expenditurewill result in additional orders for industry.Some of it will merely replace private sourcesof demand eliminated by the war. But inmany lines the accelerated rate of armamentexpenditure will call forth additional indus-trial output and may stimulate private in-vestment. The expansive effect on total out-put and on business conditions generally inthe United Kingdom will be retarded to theextent that private consumption is curtailedand difficulties develop in shifting plant,equipment, and labor to unaccustomed em-ployments.



In recent years British business conditionshave come increasingly under the influence

of government expendituresBritish business for rearmament. The earlydevelopments _ _ ...

phases of the recoverymovement that began in 1932 were foundedto a large extent on an expanding volume ofprivate investment, particularly the construc-tion of dwellings and the modernization ofindustrial facilities. With expanding national

INDUSTRIAL PRODUCTION

UNITED KINGDOM AND FRANCEPER CENT PER CENT

140

120

100

80

120

100

80

140

120

100

60

120

KJO

BO

60

UNITED KINGDOM

V

V

V

Jr

FRANCE

NDE.X - •••

f

# X Ml

f

Vvv

INDEX

VV

/

1934 1938

Official indexes of physical volume of production on a ratioscale. United Kingdom: Board of Trade; quarterly index un-adjusted for seasonal variation; 1930 = 100; latest figure, secondquarter 1939; figures for 1932-33 represent old Board of Tradeindex (1924 = 100) converted to a 1930 base. France: Statis-tique Generate; monthly indexes partially adjusted for seasonalvariation; 1928 = 100; latest figure, June 1939 (preliminary);old index on 1913 base has been converted to a 1928 base.

income, increased consumer buying stimu-lated the production of automobiles and othergoods for final consumption. Expansion ofplant and equipment was accompanied by in-creased activity in the industrial machineryand iron and steel industries. Employmentincreased, not only in industry but also inretail distribution, entertainment, and otherservice occupations.

During the later phases of the recoveryeconomic activity in England was heightenedby an accelerated rate of government expendi-

ture for armament. The iron, steel and othermetal-working trades, machinery, and ship-building were affected particularly. Theycontinued to receive support from govern-ment expenditure during the period of declin-ing production and employment that began inthe latter part of 1937. Under the influenceof still larger military and naval appropria-tions they led the upturn that commencedtoward the end of 1938. The strong upwardtrend that was under way before the outbreakof war is shown on the chart.

The mixed initial effects of the war onthe British economy are epitomized in thechanges that took place in the volume ofunemployment in the two months endingOctober 16. During this period there wasan increase of approximately 200,000 in thenumber of registered unemployed in theUnited Kingdom, some of whom were seekingemployment for the first time.

While on balance the increase occurred en-tirely among women, there were many shiftsin which both men and women were involved.As shown in the table unemployment was con-fined largely to the service trades, with thelargest increases being recorded for workersin the hotel, boarding-house, entertainment,and various retail distribution lines. Thesewere particularly hard hit by the "blackout"system, the evacuation of urban areas, and thedisruption of normal transportation sched-ules. Unemployment in the building trades

PRINCIPAL CHANGES IN UNEMPLOYMENT IN THEUNITED KINGDOM, AUGUST 14-OCTOBER 16,1939

[In number of persons]

Increases

Service trades.. . —BuildingPrinting, etcMotor vehicle, cycle, air-

craft; road transportDock and harborHouse furnishings manu-

facture

Total..

133, 70026,80020,400

13,3009,500

7,300

1211,000

Decreases

Heavy manufacturingand mining

Textiles, apparel, andother light manufactur-ing

Public works

Total..

56,400

43,10010,900

110,400

1 An additional net increase of 98,000 in unemployment largelyrepresented persons seeking work for the first time.



increased substantially, and some manufac-turing industries, particularly those cateringto the final consumer, such as house-furnish-ings and motor-cars, also showed a higherlevel of unemployment. The level for manu-facturing as a whole was reduced, however.Unemployment also declined in public workscontracting, coal mining, national govern-ment service, and public utilities. Some ofthese reductions reflected seasonal influences,but for the most part they were connectedwith the speeding up of military prepara-tions. The figures reveal clearly the earlyshift of economic activity in the United King-dom away from the satisfaction of ordinarypeace-time wants and toward fulfillment ofwar-time needs. They indicate no less clearlythe difficulties connected with this process.

Publication of many of the statistics re-flecting business conditions in the UnitedKingdom has been discontinued. In manylines, as indicated by the unemploymentfigures, the disruption of normal activity wasserious and not quickly overcome. In otherlines, however, there was little if any seriousinterruption to work, and reports from in-dustrial centers indicate that output has ex-panded during recent weeks. Production ofsteel was at approximately the rated capacityof the industry last May, and remained atvery nearly this level through July, the latestmonth for which figures are available. Re-ports from leading steel areas are to theeffect that output has recently reached newhigh levels. Presumably in recognition of anactual or potential shortage of supplies forthe steel industry the government removedthe 33% per cent duty on pig iron in October.Similar action was taken in 1937 and reversedin 1938. Manufacturers of industrial ma-chinery and electrical equipment are reportedto be exceptionally busy. In some cases un-employment has been eliminated and the laborunions have agreed to permit additionalworkers to be brought into the industry inorder not to hamper production. The chemi-cal industry is also active, and cotton and

wool manufacturing concerns are relativelywell occupied.

Little information is available concerningeconomic developments in France in recent

months. Before the out-French economic break Of War, however, pro-developments . ,

ductive activity was at ahigh level, as shown on the chart on page1046. For nearly a year the volume of pro-duction in France had been rising, a develop-ment that was in large measure associatedwith increased military expenditure. Suchexpenditure in 1938 was half again as largeas in 1937, and appropriations for 1939 be-fore the outbreak of war, amounting to some50,000,000,000 francs, were more than twicethe 1937 figures. Following the commence-ment of hostilities in Europe the French Par-liament appropriated an additional 69,000,-000,000 francs for the armed forces.

Partly as a result of mobilization, andpartly as a result of increased armamentactivity, labor shortages have developed andit has been found necessary to issue a num-ber of regulations governing hours, wages,and employment. In this respect the eco-nomic measures taken in France differ sub-stantially from those in the United Kingdom,where the settlement of questions concerningrates of pay, hours, and mobility of labor hasbeen left largely to negotiation betweenworkers and employers. In other respectsthe French controls are broadly similar tothose in Great Britain; strict control overimports and exports has been instituted,prices have been fixed, and the productionand distribution of commodities is regulatedin various ways.

Exports from the United States, as shownon the chart, increased sharply during Sep-

tember and October, the firstUnited States j - w o m o n t h s of war in Europe.foreign trade ^

The rise was partly seasonal,but it carried the figures well over those fora year previous. No such increase occurredin the initial war months in 1914. Exportsin August of that year declined sharply, and



in September they recovered only to the Julylevel. It was not until December, followingthe reorganization of disrupted shippingschedules and the reopening or establishmentof business connections, that exports exceededthose of the previous year.

FOREIGN TRADE OF THE UNITED STATES

MILLIONS OF DOLLARS

350

300

MILLIONS OF DOLLARS

350

300

150 150

100

-501937 1938 1939

General imports and exports, including reexports.

Raw cotton exports have shown by farthe largest current increase. The rise waslargely seasonal, but to some extent it re-flected the replenishment of low stocks inforeign countries and the operation of theFederal Government's export subsidy pro-gram, which went into effect late last sum-mer. Exports of cotton in September andOctober were $38,000,000 larger than in thesame months of 1938, when shipments wereunusually low. Shipments of tobacco, on theother hand, were $37,000,000 less than in1938. Except for preserved fruits, which in-creased, and fresh fruits, which declined, ex-ports of most other agricultural commoditieschanged only slightly.

Among industrial products, exports ofautomobiles rose sharply in October, as iscustomary following the introduction of newmodels. Exports of iron and steel continued

the steady expansion that began in the sum-mer of 1938, while shipments of chemicalsand coal in September and October were sub-stantially higher than in the preceding twomonths. Other leading exports such as ma-chinery and petroleum products were wellmaintained at the high levels reached duringrecent years of war preparation abroad, butshipments of aircraft declined sharply owingto the arms embargo and were $9,000,000 lessthan at the peak reached in August. Therewere small increases in exports of a wide listof manufactured commodities.

Most of the increase in exports to theUnited Kingdom that occurred in Septemberwas lost in the following month and ship-ments to France remained at the relativelylow September level. Exports to Canada rosesharply in both months, however, reaching alevel higher than in any recent year. DuringSeptember and October together the prin-cipal neutral countries to which increasedquantities of American goods were shippedwere Italy, the Netherlands, Norway, Swe-den, and Russia in Europe; Brazil, Colombia,Cuba, Mexico, and Venezuela in Latin Amer-ica ; and Japan.

Industrial activity in the United States,which increased sharply with outbreak of

the war in Europe, roseRecent business somewhat further in No-S s t T t e s in vember and in many lines

was close to capacity levels.The Board's seasonally adjusted index of in-dustrial production in November is estimatedat about 125 per cent of the 1923-1925 aver-age as compared with 120 in October, 111 inSeptember, and 103 in August. In the steelindustry output of ingots and of many finishedproducts was the largest on record and in moststeel-consuming industries there were markedincreases in activity. Automobile productionreached high levels except at plants of onemajor producer whose production had beencurtailed since early October by an industrialdispute. Output of textiles, petroleum prod-ucts, and electricity continued at high levels



reached earlier. On the railroads, shipmentsdeclined less than seasonally, following con-siderable advances in September and October,and were at about the level reached in thespring of 1937. In the construction indus-try, the effects of the war have not beenmarked. Contracts for private construction,both residential and non-residential, continuedin September and October close to the highestlevels of the year. Awards for public projectsdeclined sharply in October. Wholesale com-modity prices generally showed little changein November and were close to the advancedlevels reached in the early part of September.Prices of some industrial materials, such assteel scrap and wool, continued to declinefrom previous high levels while cotton ad-vanced.

Prices of United States Government securi-ties have increased and yields have declined

substantially during theGovernment pasf- f-WQ m o n t h s , followingsecurity market ^ . - , / . - . -IT

a period of sharp declinesin prices and of a rapid rise in yields after theoutbreak of the war. On November 25, theyield on the longest-term Treasury bondissue outstanding was 2.45 per cent, com-

pared with the highest point of 2.78 per centlate in September and with an all-time low of2.26 per cent on June 5. Yields on Treasurynotes moved similarly during this period,averaging 0.60 per cent for 3-to-5 year noteson November 25, compared with 0.35 per centon June 5.

In pursuance of the System's policy of en-deavoring to maintain orderly conditions inthe market, Federal Reserve bank holdings ofTreasury bonds and notes and guaranteedobligations, which had been increased byabout $475,000,000 during the period of theprice decline in September, were reduced byabout $45,000,000 during the two weeks end-ing November 22. System holdings of Treas-ury bills, as they mature every week, havebeen replaced on only few occasions sinceJune 21, and the System's portfolio of suchbills declined from $477,000,000 on that dateto $77,000,000 on November 22. About halfof this decline has occurred since September20. The net result has been that total hold-ings of Government securities in the SystemOpen Market Account declined from a peakof $2,826,000,000 on September 20 to $2,593,-000,000 on November 22.



NATIONAL SUMMARY OF BUSINESS CONDITIONS

[Compiled November 16 and released for publication November 18]

Rapid expansion of industrial output con-tinued in October, and employment and pay-rolls increased considerably. Distributionof commodities to consumers, which had in-creased in September, was maintained atthe higher level in October. In the first halfof November industrial activity increasedfurther but, with production in many indus-tries approaching capacity, the advance wasless rapid than in earlier months. Commodityprices generally showed little change duringOctober and the first half of November, fol-lowing the sharp rise in September.

Production.—Volume of industrial pro-duction showed a further sharp rise in Oc-tober and the Board's seasonally adjustedindex advanced from 111 to 120 per cent ofthe 1923-1925 average. Marked increasesin activity were reported in the steel andsteel-consuming industries and at mines. Inthe steel industry ingot production in Octo-ber was at a rate of 90 per cent of capacityand actual volume of output was the greatest

MANUFACTURING PRODUCTIONPOINTS IN TOTAL INDEX POINTS IN TOTAL INI

140

1934 1935 1936 1937 1938 1939

Index of physical volume of production, adjusted for seasonalvariation, 1923-1925 average = 100. Durable and nondurableseries expressed in terms of points in the total index. By months,January 1934 to October 1939.

for any month on record. Some furtherincrease in the rate of output was reportedin the first half of November. Pig iron pro-duction also advanced sharply and lake ship-ments of iron ore, which had increased

considerably in September, continued in ex-ceptionally large volume. Activity in themachinery and shipbuilding industries andin most other steel-consuming lines rose inOctober but by a considerably smaller amountthan output of steel. In the automobile in-dustry, however, output showed less than themarked rise usual at this season. This wasdue to the fact that plants of one large pro-ducer were closed during most of the monthby an industrial dispute. Mineral produc-tion in October was at record levels owingchiefly to a high rate of crude petroleumoutput.

In the nondurable goods industries activitywas generally maintained at the high levelsreached in August and September. Flourproduction declined sharply, however, fol-lowing an exceptionally large volume of out-put in September.

Value of construction contracts, as re-ported by the F. W. Dodge Corporation, de-creased considerably in October, reflectingprincipally a reduction in awards for publicconstruction. Private residential contractscontinued in substantial volume while awardsfor commercial and industrial building de-clined somewhat following increases in theprevious month.

Employment.—Reports from leading in-dustrial States indicate that factory employ-ment and payrolls increased sharply betweenthe middle of September and the middle ofOctober. Increases were particularly largeat steel mills and in related industries. Therewas also a considerable increase in employ-ment on the railroads in October.

Distribution.—Retail distribution of gen-eral merchandise in October showed aboutthe usual seasonal rise from the advancedSeptember level. In the early part of No-vember department store sales increasedconsiderably.

Freight-car loadings rose further from



September to October, reflecting a large in-crease in shipments of miscellaneous freight,which includes most manufactured products,and smaller increases in loadings of coal,forest products, and ore.

WHOLESALE PRICES

110

100

90

80

70

60

50

PER CENT

— no

100

90

80

70

60

1934 1935 1936 1937 1938

Index compiled by the United States Bureau of Labor Statistics,1926=100. By weeks, 1934 to week ending November 11, 1939.

Commodity prices.—Price changes thathave occurred since the general sharp rise inSeptember have reflected largely particulardevelopments in individual commodities.From the middle of October to the middle ofNovember prices of a number of foodstuffscontinued to decline and there were also de-creases in some industrial materials, such asprint cloths, wool, tin, and steel scrap. Wheat,cotton, and burlap advanced somewhat whileprices of most other commodities, includingfinished industrial products, showed littlechange.

Government security prices.—Followinga sharp recovery from the low of September21, prices of United States Government bondsshowed irregular changes during the periodfrom October 24 through the first half ofNovember. On November 15 yields on long-term Treasury bonds were at 2.47 per cent ascompared with 2.79 per cent on September 21.

Bank credit.—Total loans and investmentsat reporting member banks in 101 leadingcities increased substantially during the sixweeks ending November 8, reflecting largelypurchases of Treasury bills by New York City

MEMBER BANKS IN 101 LEADING CITIESBILLIONS OF DOLLARS BILLIONS OF DOLLARS

" 12

10

8

6

4

2

0

U.S. GOVT( niRECT AN

"S

OBLIGATIONS) GUARANTEED )

COMMERCIAL LOANS

OTHER SECURITIESj

LOANS TO BROKERS^""AND DEALERS

'34 1935 1938 1939

Wednesday figures for reporting member banks in 101 leadingcities, September 5, 1934, to November 15, 1939. Commercial loans,which include industrial and agricultural loans, represent priorto May 19, 1937, so-called "Other loans" as then reported.

banks. Commercial loans continued to showmoderate increases. Deposits at these banksrose to new high levels.

MONEY RATES IN NEW YORK CITY

1934 1935 1936 1937 1938 1939

Minimum rate on rediscounts for and advances to member banksby Federal Reserve bank; weekly averages of daily yields on 3- to5-year Treasury notes and Treasury bonds callable after 12 years,and average discount on new issues of 91-day Treasury bills offeredwithin week. For weeks ending January 6, 1934, to November18, 1939.



MEMBER BANK RESERVES AND RELATED ITEMSBILLIONS OF DOLLARS

16WEDNESDAY FIGURES

TREASURY DEPOSITSAT F. R. BANKS

1934 1935 1936 1937

Latest figures for November 15. See p. 1096.

1939



SUMMARY OF FINANCIAL AND BUSINESS STATISTICS

1939

Oct. Sept. Aug.

1938

Oct. Sept. Aug.

Annual averages

1938 1937 1936 1935 1933 1929

MEMBER BANK RESERVES, RESERVE BANK CREDIT,AND RELATED ITEMS

Reserve bank credit outstanding—total . . .Bills discountedBills boughtU. S. Government securities

Gold stock __Treasury currency outstandingMoney in circulationTreasury cash holdingsTreasury deposits with F. R. banksNonmember deposits and other F. R. accountsMember bank reserve balances:

Total• Excess _

Averages of daily figures; in millions of dollars

2,8326

76317,0022,92617, 3282,239358972

11,8625,490

2,794g

12,73216,8232,9117,2492,253611972

11,4435,198

2,467

12,43716,3902,9007,0982,344783872

10,6594,607

2,598g

12,56413,9402,7456,6682,782665622

8,5463,143

2,610g

12,57213,4412,7336,5702,717704598

8,1962,920

2,590

12,56413,0572,7246,4822,392774606

8,1192,955

2,6009

12,56513, 2502,7116,5102,804653658

7,9352,522

2,554143

2,54012,1622,5676,4753,225158595

6,8301,220

2,481

42,43010, 5782,5036,1012,474446551

5,9892,512

2,475

52,4319,0592,4785,5852,791128507

5,0012,469

2,42928383

2,0524,0592,2715,57628855497

2,343528

REPORTING MEMBER BANKS IN 101 LEADING CITIES

Total loans and investmentsLoans—total

Commercial, industrial and agriculturalTo brokers and dealers in securitiesOther loans for purchasing or carrying securities..All other loans

Investments—totalU. S. Government direct obligationsObligations fully guaranteed by U. S. GovtOther securities

Reserve with Federal Reserve banksCash in vault _.Balances with domestic banksDemand deposits—adjustedTime deposits (excluding interbank) 2Deposits of domestic banks 3

Borrowings .

Averages of Wednesday figures; in millions of dollars

22,5718,4214,279

552505

3,08514,1508,5662,2323,3529,957

4823,062

18,5115,2547,845

1

MONEY RATES AND BOND YIELDS

Commercial paperStock exchange call loansU. S. Treasury bills (91 days)U. S. Treasury bonds, long-termCorporate high grade bonds (Moody's Aaa).

Averages of daily figures; per cent per annum

.691.00.05

2.603.15

.691.00.14

2.653.25

.561.00.05

2.212.93

1.00.05

2.483.15

1.00

2.583.21

.751.00.06

2.513.18

.811.00.07

2.563.19

1.00.28

2.683.26

.75

.91

.172.653.24

.76

.56

.172.793.60

1.721.16

3.314.49

CAPITAL ISSUES

All issues—totalNew __.Refunding

Domestic corporate issues—total..NewRefunding

PRICES Index numbers

Common stocks (1926=100)Wholesale commodity prices (1926=100):

All commoditiesFarm productsFoodsOther commodities

Retail food prices (1923-25=100)

BUSINESS INDEXES

Industrial productionManufacturesMinerals

Construction contracts awarded—total..ResidentialAllother.

Index numbers, adjusted for seasonal variation, 1923-25=100

Factory employment.._ __Factory payrolls (unadjusted) _Freight-car loadings.Department store sales.

P120P122P77P67P84

PIOIP1018090

MERCHANDISE EXPORTS AND IMPORTS

Exports, including re-exports.General imports

Amounts per month; in millions of dollars

289181

251176

278178

246168

231166

258163

279257

205202

190171

140121

437367

1,459952241208

3,9962,0154,47620722406

2,35843

22,3848,3224,166568511

3,07714,0628,4672,2263,3699,643477

2,95118, 2095,2437,573

1

22,3278,1793,930642521

3,08614,1488,5372,2653,3468,951440

2,80817, 7175,2597,118

7

21, 3238,2823,904669576

3,13313,0418,0841,6823,2757,005425

2,44615, 6885,1646,122

1

21,0788,2683,893675578

3,12212,8107,9571,6683,1856,712416

2,41315,3775,2135,974

20, 6758,2153,886636577

3,11612,4607,7021,6463,1126,602387

2,41615,1185,2065,920

1

21,0238,5064,059701588

3,15812, 5177,9821,4513,0846,400382

2,28915,0335,2025,770

3

22,1989,546

0)1,226

0)0)

12,6528,3941,1643,0945,307337

1,88415,0975,2025,298

12

22,0648,462

0)1,181

0)0)

13,6029,0801,2503,2724,799383

2,35814, 6194,9995,810

5

19,9978,028

0) '9900)0)

11,9697,989928

3,0524,024326

2,11212, 7294,8834,938

6

17, 5059,156

0)7770)0)8,3495,228

3,1211,822240

1,322

0)4,9462,822115

22 59916* 8870)

•2, 2080)0)5,7122,865

2,8471,725248

1,142C1)6,7882,787674

5.857.61

3.604.73

74033640417618157

17441133901674

'450»103"'•347'327'26••301

Amounts per month;

76616759933864274

238146921508565

417182236338127211

in millions of dollars

'371197'17417873

'105

328178150203102101

51816435438299282

39212127018934155

89602932

. 1318

959841118781667115

92

7969758279

86

7561678075

91

7867748178

86

7868758179

90

7867738178

83

7969748279

112

8686868585

111

8181828082

78

8079847881

63

6651617166

190

9510510092105

11111111473687697947791

1031049173677896907089

969598825710290846884

90899778569689826486

88879566537788776283

86849864458090786285

1101091165941741091037892

10510510555377099867588

90909137215091746479

76758225113773505867

11911911511787142106110107111

* Less than $500,000.p Preliminary. ' Revised. • Partly estimated.1 Figures not available.2 Includes time deposits of banks, domestic and foreign, 1929-1933.» Does not include time deposits, 1929-1933.



LAW DEPARTMENT

Financial Transactions under Neutrality Act of 1939The President of the United States on No-

vember 4, 1939, issued a proclamation underauthority of section l(a) of the NeutralityAct of 1939 (Pub. Res. No. 54, 76th Cong.),approved November 4,1939, proclaiming thata state of war exists between Germany andFrance; Poland; and the United Kingdom,India, Australia, Canada, New Zealand andthe Union of South Africa. In this connec-tion, section 7 of the Neutrality Act, relatingto financial transactions, provides as follows:

FINANCIAL TRANSACTIONS

"SEC. 7 (a) Whenever the President shallhave issued a proclamation under the authorityof section 1 (a), it shall thereafter be unlawfulfor any person within the United States to pur-chase, sell, or exchange bonds, securities, orother obligations of the government of any statenamed in such proclamation, or of any politicalsubdivision of any such state, or of any personacting for or on behalf of the government ofany such state, or political subdivision thereof,issued after the date of such proclamation, orto make any loan or extend any credit (otherthan necessary credits accruing in connectionwith the transmission of telegraph, cable, wire-less and telephone services) to any such govern-ment, political subdivision, or person. Theprovisions of this subsection shall also apply tothe sale by any person within the United Statesto any person in a state named in any suchproclamation of any articles or materials listedin a proclamation referred to in or issued underthe authority of section 12 (i).

(b) The provisions of this section shall notapply to a renewal or adjustment of such in-debtedness as may exist on the date of suchproclamation.

(c) Whoever shall knowingly violate any ofthe provisions of this section or of any regula-tions issued thereunder shall, upon convictionthereof, be fined not more than $50,000 or im-prisoned for not more than five years, or both.Should the violation be by a corporation, or-ganization, or association, each officer or di-rector thereof participating in the violation shallbe liable to the penalty herein prescribed.

(d) Whenever any proclamation issued underthe authority of section 1 (a) shall have beenrevoked with respect to any state the provisionsof this section shall thereupon cease to applywith respect to such state, except as to offensescommitted prior to such revocation.

Amendments to Regulation FRegulation F, relating to trust powers of

national banks, was amended effective No-vember 20, 1939. The only substantiveamendment relates to the requirements of

section 11. Inquiries received from time totime have indicated that in some instancesthe best interests of trusts might be betterserved if the requirements were somewhatmore flexible. Accordingly, transactions havebeen excepted from such requirements wherespecifically authorized by court order. Thisexception has been incorporated in the regu-lation by substituting for the last sentence offootnote 12 the following footnote applicableto the entire section 11:

The requirements of this section shall not bedeemed to prohibit the making of any invest-ments or the carrying out of any transactionswhich are expressly required by the instrumentcreating the trust or are specifically authorizedby court order.

For the purpose of clarification, the firstsentence of footnote 12 has been revised andincorporated as a footnote appended to theword "interests" in subsections (a) and (b)of section 11, to read as follows:

Under recognized principles of sound practiceregarding the handling of trust assets, a trusteeor other fiduciary should not have any interest,direct or indirect, in the assets of a trust ex-cept as a fiduciary; and the requirements of thissection contemplate that the national bank willnot invest trust funds in the stock or obligationsof, or property acquired from, any organizationin which officers, directors, or employees of thebank have such an interest as might affect theexercise of the best judgment of the manage-ment of the bank in investing trust funds andthat the national bank will not sell or transfertrust assets to any organization in which theofficers, directors, or employees of the bankhave such an interest as might affect the exer-cise of the best judgment of the management ofthe bank in selling or transferring trust assets.

In order to conform with amendments toInternal Revenue laws, the words "RevenueAct of 1936" where they appear in section17(a), the footnote thereto, and in the stat-utes in the Appendix, have been changed toread "Internal Revenue Code"; and the appro-priate sections of the Internal Revenue Codehave been substituted in the Appendix for thesections of the Revenue Act of 1936.

Amendments to Regulation HRegulation H, relating to membership of

State banking institutions in the Federal Re-



serve System, was amended in minor respectseffective November 20,1939, and reprinted toincorporate such amendments and one pre-viously adopted. The amendment of Regula-tion H was prompted primarily by the repealof the requirement in subsection (y) of sec-tion 12B of the Federal Reserve Act that Statebanks having deposits of $1,000,000 or morebecome members of the Federal Reserve Sys-tem. The text of the regulation is set forthbelow:

REGULATION HAs amended, effective November 20, 1939

MEMBERSHIP OF STATE BANKINGINSTITUTIONS IN THE FEDERAL

RESERVE SYSTEMCONTENTS

AUTHORITY FOR REGULATIONSEC. 1. DEFINITIONS

(a) State bank(b) Mutual savings bank(c) Board(d) Board of directors(e) Federal Reserve bank stock(f) Capital and capital stock

SEC. 2. ELIGIBILITY REQUIREMENTSSEC. 3. INSURANCE OF DEPOSITSSEC. 4. APPLICATION FOR MEMBERSHIP

(a) State bank, other than a mutual savings bank(b) Mutual savings bank(c) Mutual savings bank not authorized to purchase

stock of Federal Reserve bank at time of ad-mission

(d) Execution and filing of applicationSEC. 5. APPROVAL OF APPLICATION

(a) Matters given special consideration by Board(b) Procedure for admission to membership after ap-

proval of applicationSEC. 6. CONDITIONS OF MEMBERSHIP

(a) Conditions applicable to all institutions applyingfor membership

(b) Conditions applicable to institutions exercisingtrust powers

SEC. 7. POWERS AND RESTRICTIONSSEC. 8. ESTABLISHMENT OR MAINTENANCE OF BRANCHES

(a) In general(b) Branches in the United States(c) Application for approval of branches in United

States(d) Foreign branches(e) Application for approval of foreign branches

SEC. 9. PUBLICATION OF REPORTS OF MEMBER BANKS AND THEIRAFFILIATES

(a) Reports of member banks(b) Reports of affiliates

SEC. 10. VOLUNTARY WITHDRAWAL FROM FEDERAL RESERVE SYSTEM(a) General(b) Notice of intention of withdrawal(c) Time and method of effecting actual withdrawal(d) Withdrawal of notice

SEC. 11. BOARD FORMSAPPENDIX

AUTHORITY FOR REGULATION

This regulation is based upon and issued pur-suant to provisions of section 9 of the FederalReserve Act and related provisions of law. (Section9 of the Federal Reserve Act is printed in theAppendix.)

SECTION 1. DEFINITIONS

For the purposes of this regulation—(a) The term "State bank" means any bank or

trust company incorporated under a special or gen-eral law of a State or under a general law for theDistrict of Columbia, any mutual savings bank (un-less otherwise indicated), and any Morris Plan bankor other incorporated banking institution engaged insimilar business.1

(b) The term "mutual savings bank" means abank without capital stock transacting a savingsbank business, the net earnings of which inure whollyto the benefit of its depositors after payment of obli-gations for any advances by its organizers, and inaddition thereto includes any other banking institu-tion the capital of which consists of weekly or othertime deposits which are segregated from all otherdeposits and are regarded as capital stock for thepurposes of taxation and the declaration of dividends.

(c) The term "Board" means the Board of Gov-ernors of the Federal Reserve System.

(d) The term "board of directors" means the gov-erning board of any institution performing the usualfunctions of a board of directors.

(e) The term "Federal Reserve bank stock" in-cludes the deposit which may be made with a FederalReserve bank in lieu of a subscription for stock bya mutual savings bank which is not permitted topurchase stock in a Federal Reserve bank, unlessotherwise indicated.

(/) The terms "capital" and "capital stock" meancommon stock, preferred stock, and legally issuedcapital notes and debentures purchased by the Re-construction Finance Corporation which may beconsidered capital and capital stock for purposes ofmembership in the Federal Reserve System underthe provisions of section 9 of the Federal ReserveAct.

SECTION 2. ELIGIBILITY REQUIREMENTS

Under the terms of section 9 of the Federal ReserveAct, as amended, to be eligible for admission to mem-bership in the Federal Reserve System—

(1) A State bank, other than a mutual savingsbank, must possess a paid-up, unimpaired2 capi-

1 Under the provisions of section 19 of the Federal Reserve Act,national banks, or banks organized under local laws, located inAlaska or in a dependency or insular possession or any part of theUnited States outside the continental United States are not re-quired to become members of the Federal Reserve System but may,with the consent of the Board, become members of the System.However, this Regulation H is applicable only to the admission ofbanks eligible for admission to membership under section 9 of theFederal Reserve Act and does not cover the admission of bankseligible under section 19 of the Act. Any bank desiring to beadmitted to the System under the provisions of section 19 shouldcommunicate with the Federal Reserve bank with which it desiresto do business.2 Section 345 of the Banking Act of 1935 provides in part that:"If any part of the capital of a national bank, State member bank,or bank applying for membership in the Federal Reserve Systemconsists of preferred stock, the determination of whether or notthe capital of such bank is impaired and the amount of such im-pairment shall be based upon the par value of its stock eventhough the amount which the holders of such preferred stock shallbe entitled to receive in the event of retirement or liquidationshall be in excess of the par value of such preferred stock. If anysuch bank or trust company shall have outstanding any capitalnotes or debentures of the type which the Reconstruction FinanceCorporation is authorized to purchase pursuant to the provisionsof section 304 of the Emergency Banking and Bank ConservationAct, approved March 9, 1933, as amended, the capital of such bankmay be deemed to be unimpaired if the sound value of its assets isnot less than its total liabilities, including capital stock, but ex-cluding such capital notes or debentures and any obligations ofthe bank expressly subordinated thereto."



tal sufficient to entitle it to become a nationalbanking association in the place where it is situ-ated under the provisions of the National BankAct, except in the following circumstances, inwhich case such a bank may be admitted to mem-bership with a lesser capital as indicated:

(A) Any such institution organized priorto June 16, 1933 (the date of the approval ofthe Banking Act of 1933) situated in a placethe population of which does not exceed 3,000inhabitants and at the time of admission hav-ing a capital of not less than $25,000;

(B) Any such institution (whether or notorganized prior to June 16, 1933) situated ina place the population of which does not ex-ceed 3,000 inhabitants and which at the timeof admission is entitled to the benefits of in-surance under section 12B of the FederalReserve Act and has a capital of not less than$25,000.

(2) A mutual savings bank must possess sur-plus and undivided profits not less than theamount of capital required for the organizationof a national bank in the place where it is situated.

(3) The minimum capital required for the or-ganization of a national bank, referred to herein-before in connection with the capital required foradmission to membership in the Federal ReserveSystem, is as follows:

If located in a city or town with a population-Minimum

Capital

Not exceeding 6,000 inhabitantsExceeding 6,000 but not exceeding 50,000 inhabitantsExceeding 50,000 inhabitants (except as stated below)In an outlying district of a city with a population exceeding

50,000 inhabitants; provided State law permits organiza-tion of State banks in such location with a capital of$100,000 or less _..._

SECTION 3 . INSURANCE OF DEPOSITS

Any State bank becoming a member of the FederalReserve System after the date of the enactment ofthe Banking Act of 1935 (August 23, 1935) andwhich is not at the time an insured bank under theprovisions of section 12B of the Federal Reserve Act,will become an insured bank under the provisions ofthat section on the date upon which it becomes amember of the Federal Reserve System.3 In thecase of an insured bank which is admitted to mem-bership in the Federal Reserve System, the bankwill continue to be an insured bank.

3 In the case of a State bank which at the time of its admissionto membership in the Federal Reserve System is not an insuredbank, the Board is required under the provisions of subsections(e) and (g) of section 12B of the Federal Reserve Act to issue acertificate to the Federal Deposit Insurance Corporation to theeffect that the bank is a member of the Federal Reserve Systemand that consideration has been given to the financial history andcondition of the bank, the adequacy of its capital structure, itsfuture earnings prospects, the general character of its manage-ment, the convenience and needs of the community to be served bythe bank, and whether or not its corporate powers are consistentwith the purposes of section 12B of the Federal Reserve Act.

SECTION 4. APPLICATION FOR MEMBERSHIP

(a) State bank, other than a mutual savings bank.—A State bank, other than a mutual savings bank,applying for membership, shall make application onForm 83A to the Board for an amount of capitalstock in the Federal Reserve bank of its districtequal to six per cent of the paid-up capital stock andsurplus of the applying institution.

(b) Mutual savings bank.—A mutual savings bankapplying for membership shall make application onForm 83B to the Board for an amount of capitalstock in the Federal Reserve bank of its districtequal to six-tenths of one per cent of its total .depositliabilities as shown ]by the most recent report ofexamination of such institution preceding its admis-sion to membership, or, if such institution be not per-mitted by the laws under which it was organized topurchase stock in a Federal Reserve bank, on Form83 C, for permission to deposit with the FederalReserve bank an amount equal to the amount whichit would have been required to pay in on account ofa subscription to capital stock.

(c) Mutual sayings bank not authorized to pur-chase stock of Federal Reserve bank at time of ad-mission.—If a mutual savings bank be admitted tomembership on the basis of a deposit of the requiredamount with the Federal Reserve bank in lieu ofpayment upon capital stock because the laws underwhich such bank was organized do not at that timeauthorize it to purchase stock in the Federal Reservebank, it shall subscribe on Form 83D for the ap-propriate amount of stock in the Federal Reservebank whenever such laws are amended so as toauthorize it to purchase stock in a Federal Reservebank.4

(d) Execution and filing of application.—Each ap-plication made under the provisions of this sectionand the exhibits referred to in the application blankshall be executed and filed, in duplicate, with theFederal Reserve bank of the district in which theapplying bank is located.

SECTION 5. APPROVAL OF APPLICATION

(a) Matters given special consideration by Board.—In passing upon an application, the following mat-ters will be given special consideration:

(1) The financial history and condition of theapplying bank and the general character of itsmanagement;

(2) The adequacy of its capital structure andits future earnings prospects;

(3) The convenience and needs of the com-munity to be served by the bank; and

(4) Whether its corporate powers are con-sistent with the purposes of the Federal ReserveAct.

4 The Federal Reserve Act provides that, if the laws underwhich any such savings bank was organized be not amended atthe first session of the legislature following the admission of thesavings bank to membership so as to authorize mutual savingsbanks to purchase Federal Reserve bank stock, or if such laws beso amended and the bank fail within six months thereafter topurchase such stock, all of its rights and privileges as a memberbank shall be forfeited and its membership in the Federal ReserveSystem shall be terminated in the manner prescribed in section 9of the Federal Reserve Act.



(6) Procedure for admission to membership afterapproval of application.—If an applying bank con-forms to all the requirements of the Federal ReserveAct and this regulation and is otherwise qualified formembership, its application will be approved subjectto such conditions as may be prescribed pursuant tothe provisions of the Federal Reserve Act. When theconditions prescribed have been accepted by the apply-ing bank, it should pay to the Federal Reserve bankof its district one-half of the amount of its subscrip-tion and, upon receipt of advice from the FederalReserve bank as to the required amount, one-half ofone per cent of its paid-up subscription for eachmonth from the period of the last dividend.5 Theremaining half of the bank's subscription shall besubject to call when deemed necessary by the Board.The bank's membership in the Federal Reserve Sys-tem shall become effective on the date as of which acertificate of stock of the Federal Reserve bank isissued to it pursuant to its application for member-ship or, in the case of a mutual savings bank which isnot authorized to subscribe for stock, on the date asof which a certificate representing the acceptance of adeposit with the Federal Reserve bank in place of apayment on account of a subscription to stock isissued to it pursuant to its application for member-ship.

SECTION 6. CONDITIONS OF MEMBERSHIP

(a) Conditions applicable to all institutions apply-ing for membership.—Pursuant to the authoritycontained in the first paragraph of section 9 of theFederal Reserve Act, which authorizes the Board topermit applying State banks to become membersof the Federal Reserve System "subject to the pro-visions of this Act and to such conditions as it mayprescribe pursuant thereto," the Board, except ashereinafter stated, will prescribe the following con-ditions of membership for each State bank hereafterapplying for admission to the Federal Reserve Sys-tem, and, in addition, such other conditions as maybe considered necessary or advisable in the particularcase—

1. Such bank at all times shall conduct itsbusiness and exercise its powers with due regardto the safety of.its depositors, and, except withthe permission of the Board of Governors of theFederal Reserve System, such bank shall notcause or permit any change to be made in thegeneral character of its business or in the scopeof the corporate powers exercised by it at thetime of admission to membership.6

2. The net capital and surplus funds of suchbank shall be adequate in relation to the char-acter and condition of its assets and to its de-

5 In the case of a mutual savings bank which is not permittedby the laws under which it was organized to purchase stock in aFederal Reserve bank, it shall deposit with the Federal Reservebank an amount equal to the amount which it would have beenrequired to pay in on account of a subscription to capital stock.

6 If, after admission of any bank to membership, it should desireto make any change in the general character of its business or inthe scope of its corporate powers exercised at the time of admis-sion, it will be necessary for it to obtain the permission of theBoard before making any such change.

The acquisition by a bank of the assets of another institutionthrough merger, consolidation, or purchase may result in a changein the character of its assets or the scope of its functions withinthe meaning of condition numbered 1, and if at any time a mem-ber State bank subject to such condition anticipates making anysuch acquisition a detailed report setting forth all the facts inconnection with the transaction should be made promptly to theFederal Reserve bank of the district in which such bank is located.

posit liabilities and other corporate responsibili-ties,7 and its capital8 shall not be reduced exceptwith the permission of the Board of Governorsof the Federal Reserve System.9

3. Such bank shall not engage as a businessin issuing or selling either directly or indirectly(through affiliated corporations or otherwise)notes, bonds, mortgages, certificates, or otherevidences of indebtedness representing real es-tate loans or participations therein, either withor without a guarantee, indorsement, or otherobligation of such bank or an affiliated corpora-tion.10

(b) Conditions applicable to institutions exercisingtrust powers.—The Board will also prescribe for eachtrust company or State bank exercising trust powersat the time of its admission to membership the fol-lowing conditions of membership which are appro-priate for institutions exercising trust powers:

4. Such bank shall not invest funds held byit as fiduciary in stock or obligations of, or prop-erty acquired from, the bank or its directors,officers, or employees, or their interests, or instock or obligations of, or property acquiredfrom, affiliates of the bank.11

5. Such bank, except as permitted in the caseof national banks exercising fiduciary powers,shall not invest collectively funds held by thebank as fiduciary and shall keep the securitiesand investments of each trust separate fromthose of all other trusts12 and separate also fromthe properties of the bank itself.13

6. If funds held by such bank as fiduciary aredeposited in its commercial or savings depart-ment or otherwise used in the conduct of its

7 If at any time, in the light of all the circumstances, the aggre-gate amount of the bank's net capital and surplus funds appearsto be inadequate, the bank, within such period as shall be deemedby the Board to be reasonable for this purpose, shall increase theamount thereof to an amount which in the judgment of the Boardshall be adequate in relation to the bank's aggregate deposit liabili-ties and other corporate responsibilities.

8 This applies to capital stock of all classes and to capital notesand debentures legally issued and purchased by the ReconstructionFinance Corporation which, under the Federal Reserve Act, areconsidered as capital for purposes of membership.

A reduction in capital, however, shall not be deemed to be con-trary to this provision if, at the same time, the capital is corre-spondingly increased or a specific reserve in an amount not lessthan the amount of the capital reduction is set aside to providefor an increase in capital and can be used for no other purpose;provided, of course, the transaction does not violate any provisionof applicable laws.9 This condition will not be prescribed in connection with theadmission of mutual savings banks to membership in the FederalReserve System.10 This condition does not apply to the sale of mortgages coveredby insurance under the provisions of the National Housing Act.11 Under recognized principles of sound practice regarding thehandling of trust assets, a trustee or other fiduciary should nothave any interest, direct or indirect, in the assets of a trust exceptas a fiduciary; and the condition contemplates that a trust insti-tution will not invest trust funds in the stock or obligations of, orproperty acquired from, any organization in which officers, direc-tors, or employees of the trust institution have such an interest asmight affect the exercise of the best judgment of the managementof the trust institution in investing trust funds.

The requirements of this condition shall not be deemed to pro-hibit the making of any investments or the carrying out of anytransactions which are expressly required by the instrumentcreating the trust or are specifically authorized by court order.

12 This does not prevent a bank from investing the funds of sev-eral trusts in a single real estate loan of the kind which could bemade by a national bank under the provisions of section 24 of theFederal Reserve Act, as amended, if the bank owns no partici-pation in the loan and has no interest therein except as trusteeor other fiduciary.

13 Requirements relating to collective investment of trust fundsby national banks are contained in the Board's Regulation F.



business, it shall deposit with its trust depart-ment security in the same manner and to thesame extent as is required of national banksexercising fiduciary powers.14

SECTION 7. POWERS AND RESTRICTIONS

Every State bank while a member of the FederalReserve System—

(a) Shall retain its full charter and statutoryrights subject to the provisions of the Federal Re-serve Act and other Acts of Congress applicable tomember State banks, to the regulations of the Boardmade pursuant to law, and to the conditions pre-scribed by the Board and agreed to by such bankprior to its admission;

(b) Shall enjoy all the privileges and observe allthe requirements of the Federal Reserve Act andother Acts of Congress applicable to member Statebanks and of the regulations of the Board made pur-suant to law which are applicable to member Statebanks; and

(c) Shall comply at all times with any and allconditions of membership prescribed by the Boardin connection with the admission of such bank tomembership in the Federal Reserve System.

SECTION 8. ESTABLISHMENT OR MAINTENANCEOF BRANCHES

(a) In general.—Every State bank which is orhereafter becomes a member of the Federal ReserveSystem is subject to the provisions of section 9 ofthe Federal Reserve Act relating to the establish-ment and maintenance of branches in the UnitedStates or in a dependency or insular possessionthereof or in a foreign country. Under the pro-visions of section 9, member State banks establishingand operating branches in the United States beyondthe corporate limits of the city, town, or village inwhich the parent bank is situated must conform tothe same terms, conditions, limitations, and restric-tions as are applicable to the establishment ofbranches by national banks under the provisions ofsection 5155 of the Revised Statutes of the UnitedStates relating to the establishment of branches inthe United States, except that the approval of anysuch branches must be obtained from the Boardrather than from the Comptroller of the Currency.Under the provisions of section 9, member Statebanks establishing and operating branches in a de-pendency or insular possession of the United Statesor in a foreign country must conform to the terms,conditions, limitations, and restrictions contained insection 25 of the Federal Reserve Act relating to theestablishment by national banks of branches in suchplaces. The principal applicable provisions of lawhave been interpreted as follows:

(b) Branches in the United States.—1. Branches established within the corporate

limits of the city, town, or village in which the14 Such requirements applicable to national banks are contained

in section 11 (k) of the Federal Reserve Act and the Board's Regu-lation F issued pursuant to section 11 (k).

In cases where trust funds are fully protected by a statutorypreference in all of the assets of the bank over its generalcreditors, the Board may waive compliance with this condition.However, if compliance be waived in any case, the Board expresslyreserves the right to require compliance with the condition if, atany time, it feels that such trust funds are not adequately pro-tected.

parent bank is situated do not require the ap-proval of the Board.

2. Before a member State bank establishes abranch beyond the corporate limits of the city,town, or village in which it is situated, it mustobtain the approval of the Board.

3. Before any nonmember State bank havinga branch or branches established after February25, 1927, beyond the corporate limits of the city,town, or village in which the bank is situated isadmitted to membership in the Federal ReserveSystem, it must obtain the approval of the Boardfor the retention of such branches; and anyprovisions contained in this section of this regu-lation which by their terms relate to the estab-lishment on retention of branches by memberState banks are equally applicable to the reten-tion by a nonmember State bank applying formembership and having any branches previouslyestablished.

4. A member State bank located in a Statewhich by statute law permits the maintenanceof branches within county or greater limits may,with the approval of the Board, establish andoperate, without regard to the capital require-ments of section 5155 of the Revised Statutes, aseasonal agency in any resort community withinthe limits of the county in which the main officeof such bank is located for the purpose of re-ceiving and paying out deposits, issuing andcashing checks and drafts, and doing businessincident thereto, if no bank is located and doingbusiness in the place where the proposed agencyis to be located; and any permit issued for theestablishment of such an agency shall be re-voked upon the opening of a State or nationalbank in the community where the agency islocated.

5. Except as stated in the immediately pre-ceding paragraph, a member State bank whichestablishes a branch beyond the corporate limitsof the city, town, or village in which it is situ-ated must have a paid-in and unimpaired capi-tal stock of not less than $500,000, except that,in a State with a population of less than 1,000,-000, and which has no city located therein witha population exceeding 100,000, the capital stockshall be not less than $250,000, and except that,in a State with a population of less than 500,-000, and which has no city located therein witha population exceeding 50,000, the capital stockshall be not less than $100,000. In any suchcase, the aggregate capital stock of the memberState bank and its branches shall at no time beless than the aggregate minimum capital stockrequired by law for the establishment of anequal number of national banking associationssituated in the various places where such mem-ber State bank and its branches are situated.

6. A member State bank may not establish abranch beyond the corporate limits of the city,town, or village in which it is situated unlesssuch establishment and operation are at thetime authorized to State banks by the statutelaw of the State in question by language specifi-cally granting such authority affirmatively andnot merely by implication or recognition, and



subject to the restrictions as to location imposedby the law of the State on State banks.

7. Any member State bank which, on Febru-ary 25, 1927, had established and was actuallyoperating a branch or branches in conformitywith the State law is permitted to retain andoperate the same while remaining a memberof the Federal Reserve System, regardless of thelocation of such branch or branches.

8. In order to remain a member of the FederalReserve System, every member State bank mustrelinquish any branch or branches establishedafter February 25, 1927, beyond the corporatelimits of the city, town, or village in which theparent bank is situated, unless such branch orbranches are in conformity with or are broughtinto conformity with the same terms, conditions,limitations, and restrictions as would be appli-cable in the case of the establishment of suchbranches.

9. The removal of a branch from one town toanother town constitutes the establishment of abranch in such other town within the meaning ofthe provisions of the Federal Reserve Act.

(c) Application for approval of branches in UnitedStates.—Any member State bank desiring to establisha branch beyond the corporate limits of the city,town, or village in which it is located and any non-member State bank applying for membership anddesiring to retain any branch established after Feb-ruary 25, 1927, beyond the corporate limits of thecity, town, or village in which the bank is situatedshould submit a request for the approval by theBoard of any such branch to the Federal Reservebank of the district in which the bank is located.Any such request should be accompanied by adviceas to the scope of the functions and the characterof the business which are or will be performed bythe branch and detailed information regarding thepolicy followed proposed to be followed with refer-ence to supervision of the branch by the head office;and the bank may be required in any case to furnishadditional information which will be helpful to theBoard in determining whether to approve such re-quest.

(d) Foreign branches.—Before a member Statebank establishes a branch in a foreign country, ordependency or insular possession of the United States,it must have a capital and surplus of $1,000,000 ormore and obtain the approval of the Board.

(e) Application for approval of foreign branches.—Any member State bank desiring to establish sucha branch and any nonmember State bank applyingfor membership and desiring to retain any suchbranch established after February 25, 1927, shouldsubmit a request for the approval by the Board ofany such branch to the Federal Reserve bank ofthe district in which the bank is located. Any suchrequest should be accompanied by advice as to thescope of the functions and the character of the busi-ness which are or will be performed by the branchand detailed information regarding the policy fol-lowed or proposed to be followed with reference tosupervision of the branch by the head office; andthe bank may be required in any case to furnish ad-ditional information which will be helpful to theBoard in determining whether to approve such re-quest.

SECTION 9. PUBLICATION OF REPORTS OF MEMBER BANKSAND THEIR AFFILIATES15

(a) Reports of member banks.—Each report ofcondition made by a member State bank, which isrequired to be made to the Federal Reserve bankof its district as of call dates fixed by the Board ofGovernors of the Federal Reserve System, shall bepublished by such member bank within twenty daysfrom the date the call therefor is issued.

The report shall be printed in a newspaper pub-lished in the place where the bank is located or, ifthere be no newspaper published in the place wherethe bank is located, then in a newspaper publishedin the same or in an adjourning county and in generalcirculation in the place where the bank is located.The term "newspaper", for the purpose of this regu-lation, means a publication with a general circulationpublished not less frequently than once a week, oneof the primary functions of which is the disseminationof news of general interest.

The copy of the report for the use of the printerfor publication should be prepared on Form 105e.The published information shall agree in every re-spect with that shown on the face of the conditionreport rendered to the Federal Reserve bank, exceptthat any item for which no amount is reported maybe omitted in the published statement. All signaturesshall be the same in the published statement as inthe original report submitted to the Federal Reservebank, but the signatures may be typewritten or other-wise copied on the report for publication.

A copy of the printed report shall be submittedto the Federal Reserve bank attached to the certifi-cate on Form 105e.

(b) Reports of affiliates.16—Each report of an af-filiate of a member State bank, including a holdingcompany affiliate, shall be published at the sametime and in the same newspaper as the affiliatedbank's own condition report submitted to the Fed-eral Reserve bank, unless an extension of time forsubmission of the report of the affiliate has beengranted under authority of the Board of Governorsof the Federal Reserve System. When such exten-sion of time has been granted, the report of theaffiliate must be submitted and published before theexpiration of such extended period in the same news-

15 Under the provisions of section 9 of the Federal Reserve Act,reports of condition of member State banks which, under thatsection, must be made to the respective Federal Reserve banks oncall dates fixed by the Board of Governors of the Federal ReserveSystem "shall be published by the reporting banks in such mannerand in accordance with such regulations as the said Board mayprescribe".

Section 9 also provides that the reports of affiliates of a memberState bank which are required by that section to be furnished tothe respective Federal Reserve banks "shall be published by thebank under the same conditions as govern its own condition re-ports". The term "affiliates", as used in this provision of section9, under the express terms of that section, includes "holding com-pany affiliates as well as other affiliates", but a member State bankis not required to furnish to a Federal Reserve bank the report ofan affiliated member bank.

16 Section 21 of the Federal Reserve Act, among other things,provides as follows: "Whenever member banks are required toobtain reports from affiliates, or whenever affiliates of memberbanks are required to submit to examination, the Board of Gover-nors of the Federal Reserve System or the Comptroller of the Cur-rency, as the case may be, may waive such requirements with re-spect to any such report or examination of any affiliate if in thejudgment of the said Board or Comptroller, respectively, suchreport or examination is not necessary to disclose fully the rela-tions between such affiliate and such bank and the effect thereofupon the affairs of such bank." Therefore, of course, in any casewhere the Board of Governors waives the filing of a report of anaffiliate of a member State bank, no publication of a report ofsuch affiliate is required.



paper as the condition report of the bank was pub-lished.

The copy of the report for the use of the printerfor publication should be prepared on Form 220a.The published information shall agree in every re-spect with that shown on the face of the report ofthe affiliate furnished to the Federal Reserve bank bythe affiliated member bank, except that any item ap-pearing under the caption "Financial relations withbank" against which the word "none" appears onthe report furnished to the Federal Reserve bankmay be omitted in the published statement of theaffiliate, provided that if the word "none" is shownagainst all of the items appearing under such cap-tion in the report furnished to the Federal Reservebank the caption "Financial relations with bank"shall appear in the published statement followed bythe word "none." All signatures shall be the samein the published statement as in the original reportsubmitted to the Federal Reserve bank, but thesignatures may be typewritten or otherwise copiedon the report for publication.

A copy of the printed report shall be submitted tothe Federal Reserve bank attached to the certificateon Form 220a.

SECTION 1 0 . VOLUNTARY WITHDRAWAL FROM FEDERALRESERVE SYSTEM

(a) General.—Any State bank desiring to with-draw from membership in a Federal Reserve bankmay do so after six months' written notice has beenfiled with the Board;17 and the Board, in its discre-tion, may waive such six months' notice in any indi-vidual case and may permit such bank to withdrawfrom membership in a Federal Reserve bank, subjectto such conditions as the Board may prescribe, priorto the expiration of six months from the date ofthe written notice of its intention to withdraw.

(b) Notice of intention of withdrawal.—Any Statebank desiring to withdraw from membership in aFederal Reserve bank should signify its intention todo so in a letter addressed to the Board and mailedto the Federal Reserve bank of which such bank isa member. Such letter should state clearly the reasonfor the bank's desire to withdraw. Any such bankdesiring to withdraw from membership prior to theexpiration of six months from the date of writtennotice of its intention to withdraw should so statein the letter signifying its intention to withdraw andshould state the reason for its desire to withdrawprior to the expiration of six months.

Every notice of intention of a bank to withdrawfrom membership in the Federal Reserve Systemand every application for the waiver of such noticeshould be accompanied by a certified copy of a resolu-tion duly adopted by the board of directors of such

17 Under specific provisions of section 9 of the Federal ReserveAct, however, no Federal Reserve bank shall, except upon expressauthority of the Board, cancel within the same calendar year morethan twenty-five per cent of its capital stock for the purpose ofeffecting voluntary withdrawals during that year. All applicationsfor voluntary withdrawals are required by the law to be dealt within the order in which they are filed with the Board.

bank authorizing the withdrawal of such tank frommembership in the Federal Reserve System and au-thorizing a certain officer or certain officers of suchbank to file such notice or application, to surrenderfor cancellation the Federal Reserve bank stock heldby such bank, to receive and receipt for any moneysor other property due to such bank from the FederalReserve bank and to do such other things as may benecessary to effect the withdrawal of such bankfrom membership in the Federal Reserve System.

Notice of intention to withdraw or application forwaiver of six months' notice of intention to withdrawby any bank which is in the hands of a conservatoror other State official acting in a capacity similarto that of a conservator should be accompanied byadvice from the conservator or other such State of-ficial that he joins in such notice or application.

(c) Time and method of effecting actual with-drawal.—Upon the expiration of six months afternotice of intention to withdraw or upon the waivingof such six months' notice by the Board, such bankmay surrender its stock and its certificate of mem-bership to the Federal Reserve bank and requestthat same be canceled and that all amounts due toit from the Federal Reserve bank be refunded.18

Unless this is done within two months after the ex-piration of such six months' notice or after the waiverof such notice by the Board, or unless the bank re-quests and the Board grants an extension of time,such bank will be presumed to have abandoned itsintention of withdrawing from membership and willnot be permitted to withdraw without again givingsix months' written notice or obtaining the waiverof such notice.

(d) Withdrawal of notice.—Any bank which hasgiven notice of its intention to withdraw from mem-bership in a Federal Reserve bank may withdraw suchnotice at any time before its stock has been canceledand upon doing so may remain a member of theFederal Reserve System. The notice rescinding theformer notice should be accompanied by a certifiedcopy of an appropriate resolution duly adopted bythe board of directors of the bank.

SECTION 1 1 . BOARD FORMS

All forms referred to in this regulation and allsuch forms as they may be amended from time totime shall be a part of this regulation.

18 A bank's withdrawal from membership in the Federal ReserveSystem is effective on the date on which the Federal Reserve bankstock held by it is duly canceled. Until such stock has been can-celed, such bank remains a member of the Federal Reserve Sys-tem, is entitled to all the privileges of membership, and is requiredto comply with all provisions of law and all regulations of theBoard pertaining to member banks and with all conditions ofmembership applicable to it. Upon the cancellation of such stock,all rights and privileges of such bank as a member bank shallterminate.

Upon the cancellation of such stock, and after due provisionhas been made for any indebtedness due or to become due to theFederal Reserve bank, such bank shall be entitled to a refund ofits cash paid subscription with interest at the rate of one-half ofone per cent per month from the date of last dividend, the amountrefunded in no event to exceed the book value of the stock at thattime, and shall likewise be entitled to the repayment of depositsand of any other balance due from the Federal Reserve bank.



APPENDIX

Statutory Provisions

Section 9 of the Federal Reserve Act provides asfollows:

Applications for membership by State banks x

Any bank incorporated by special law of any State,or organized under the general laws of any State orof the United States, including Morris Plan banksand other incorporated banking institutions engagedin similar business, desiring to become a member ofthe Federal Reserve System, may make applicationto the Board of Governors of the Federal ReserveSystem, under such rules and regulations as it mayprescribe, for the right to subscribe to the stock ofthe Federal reserve bank organized within the dis-trict in which the applying bank is located. Suchapplication shall be for the same amount of stockthat the applying bank would be required to sub-scribe to as a national bank. For the purposes ofmembership of any such bank the terms "capital"and "capital stock" shall include the amount of out-standing capital notes and debentures legally issuedby the applying bank and purchased by the Recon-struction Finance Corporation. The Board of Gov-ernors of the Federal Reserve System, subject to theprovisions of this Act and to such conditions as itmay prescribe pursuant thereto may permit theapplying bank to become a stockholder of such Fed-eral reserve bank.

Branches of State member banksAny such State bank which, at the date of the

approval of this Act, has established and is operatinga branch or branches in conformity with the Statelaw, may retain and operate the same while remain-ing or upon becoming a stockholder of such Federalreserve bank; but no such State bank may retain oracquire stock in a Federal reserve bank except uponrelinquishment of any branch or branches establishedafter the date of the approval of this Act beyond thelimits of the city, town, or village in which the parentbank is situated. Provided, however, That nothingherein contained shall prevent any State memberbank from establishing and operating branches inthe United States or any dependency or insular pos-session thereof or in any foreign country, on thesame terms and conditions and subject to the samelimitations and restrictions as are applicable to theestablishment of branches by national banks exceptthat the approval of the Board of Governors of theFederal Reserve System, instead of the Comptrollerof the Currency, shall be obtained before any Statemember bank may hereafter establish any branchand before any State bank hereafter admitted tomembership may retain any branch established afterFebruary 25, 1927, beyond the limits of the city,town, or village in which the parent bank is situated.

Financial condition, management and powersIn acting upon such application the Board of

Governors of the Federal Reserve System shall con-sider the financial condition of the applying bank,the general character of its management, and whetheror not the corporate powers exercised are consistentwith the purposes of this act.

1 This and subsequent catchlines are not a part of the law.

Payment of subscription

Whenever the Board of Governors of the FederalReserve System shall permit the applying bank tobecome a stockholder in the Federal reserve bank ofthe district its stock subscription shall be payableon call of the Board of Governors of the FederalReserve System, and stock issued to it shall be heldsubject to the provisions of this act.

Provisions of law to be complied with; reports ofcondition

All banks admitted to membership under author-ity of this section shall be required to complywith the reserve and capital requirements of thisact and to conform to those provisions of law im-posed on national, banks which prohibit such banksfrom lending on or purchasing their own stock, whichrelate to the withdrawal or impairment of theircapital stock, and which relate to the payment ofunearned dividends. Such banks and the officers,agents, and employees thereof shall also be subjectto the provisions of and to the penalties prescribedby section fifty-two hundred and nine of the RevisedStatutes, and shall be required to make reports ofcondition and of the payment of dividends to theFederal reserve bank of which they become a mem-ber. Not less than three of such reports shall bemade annually on call of the Federal reserve bankon dates to be fixed by the Board of Governors of theFederal Reserve System. Failure to make suchreports within ten days after the date they are calledfor shall subject the offending bank to a penalty of$100 a day for each day that it fails to transmit suchreport; such penalty to be collected by the Federalreserve bank by suit or otherwise. Such reports ofcondition shall be in such form and shall contain suchinformation as the Board of Governors of the FederalReserve System may require and shall be publishedby the reporting banks in such manner and in accord-ance with such regulations as the said Board mayprescribe.

Examinations

As a condition of membership such banks shalllikewise be subject to examinations made by direc-tion of the Board of Governors of the Federal Re-serve System or of the Federal reserve bank byexaminers selected or approved by the Board ofGovernors of the Federal Reserve System.

Acceptance of State examinations; expenses; reportsof examinations

Whenever the directors of the Federal reservebank shall approve the examinations made by theState authorities, such examinations and the reportsthereof may be accepted in lieu of examinations madeby examiners selected or approved by the Board ofGovernors of the Federal Reserve System: Provided,however, That when it deems it necessary the boardmay order special examinations by examiners of itsown selection and shall in all cases approve the formof the report. The expenses of all examinations,other than those made by State authorities, may, inthe discretion of the Board of Governors of the Fed-eral Reserve System, be assessed against the banksexamined and, when so assessed, shall be paid by thebanks examined. Copies of the reports of such ex-aminations may, in the discretion of the Board of



Governors of the Federal Reserve System, be fur-nished to the State authorities having supervision ofsuch banks, to officers, directors, or receivers of suchbanks, and to any other proper persons.

Forfeiture of membership

If at any time it shall appear to the Board of Gov-ernors of the Federal Reserve System that a mem-ber bank has failed to comply with the provisions ofthis section or the regulations of the Board of Gov-ernors of the Federal Reserve System made pursuantthereto, or has ceased to exercise banking functionswithout a receiver or liquidating agent having beenappointed therefor, it shall be within the power ofthe board after hearing to require such bank to sur-render its stock in the Federal reserve bank and toforfeit all rights and privileges of membership. TheBoard of Governors of the Federal Reserve Systemmay restore membership upon due proof of compli-ance with the conditions imposed by this section.

Voluntary withdrawal from membership

Any State bank or trust company desiring towithdraw from membership in a Federal reservebank may do so, after six months' written noticeshall have been filed with the Board of Governorsof the Federal Reserve System, upon the surrenderand cancellation of all of its holdings of capital stockin the Federal reserve bank: Provided, That theBoard of Governors of the Federal Reserve System,in its discretion and subject to such conditions as itmay prescribe, may waive such six months' noticein individual cases and may permit any such Statebank or trust company to withdraw from member-ship in a Federal reserve bank prior to the expirationof six months from the date of the written notice ofits intention to withdraw: Provided, however, Thatno Federal reserve bank shall, except under expressauthority of the Board of Governors of the FederalReserve System, cancel within the same calendaryear more than twenty-five per centum of its capitalstock for the purpose of effecting voluntary with-drawals during that year. All such applications shallbe dealt with in the order in which they are filed withthe board. Whenever a member bank shall surrenderits stock holdings in a Federal reserve bank, or shallbe ordered to do so by the Board of Governors ofthe Federal Reserve System, under authority oflaw, all of its rights and privileges as a memberbank shall thereupon cease and determine, and afterdue provision has been made for any indebtednessdue or to become due to the Federal reserve bank itshall be entitled to a refund of its cash paid sub-scription with interest at the rate of one-half of oneper centum per month from date of last dividend,if earned, the amount refunded in no event to exceedthe book value of the stock at that time, and shalllikewise be entitled to repayment of deposits and ofany other balance due from the Federal reservebank.

Capital required for membership

No applying bank shall be admitted to member-ship in a Federal reserve bank unless it possesses apaid-up unimpaired capital sufficient to entitle it tobecome a national banking association in the placewhere it is situated under the provisions of theNational Bank Act, as amended: Provided, That thisparagraph shall not apply to State banks and trust

companies organized prior to the date this para-graph as amended takes effect and situated in aplace the population of which does not exceed threethousand inhabitants and having a capital of not lessthan $25,000, nor to any State bank or trust com-pany which is so situated and which, while it is en-titled to the benefits of insurance under section 12Bof this Act, increases its capital to not less than$25,000.

Waiver of membership requirements as to insuredbanks

(The provisions of this paragraph of the statuterelate to waiver of membership requirements forbanks which were formerly required to become mem-bers of the Federal Reserve System under subsec-tion (y) of section 12B of the Federal Reserve Act.In view of an amendment of June 20, 1939, repealingthe requirement for membership, the provisionsrelating to waiver of membership requirements isno longer effective, and, accordingly, is not printedherein.)

Laws to which subject

Banks becoming members of the Federal ReserveSystem under authority of this section shall be sub-ject to the provisions of this section and to those ofthis act which relate specifically to member banks,but shall not be subject to examination under theprovisions of the first two paragraphs of sectionfifty-two hundred and forty of the Revised Statutesas amended by section twenty-one of this act. Sub-ject to the provisions of this act and to the regula-tions of the board made pursuant thereto, any bankbecoming a member of the Federal Reserve Systemshall retain its full charter and statutory rightsas a State bank or trust company, and may continueto exercise all corporate powers granted it by theState in which it was created, and shall be entitledto all privileges of member banks: Provided, how-ever, That no Federal reserve bank shall be per-mitted to discount for any State bank or trust com-pany notes, drafts, or bills of exchange of any oneborrower who is liable for borrowed money to suchState bank or trust company in an amount greaterthan that which could be borrowed lawfully fromsuch State bank or trust company were it a nationalbanking association. The Federal reserve bank, as acondition of the discount of notes, drafts, and bills ofexchange for such State bank or trust company, shallrequire a certificate or guaranty to the effect thatthe borrower is not liable to such bank in excess ofthe amount provided by this section, and will not bepermitted to become liable in excess of this amountwhile such notes, drafts, or bills of exchange areunder discount with the Federal reserve bank.

False certification of checks

It shall be unlawful for any officer, clerk, or agentof any bank admitted to membership under author-ity of this section to certify any check drawn uponsuch bank unless the person or company drawing thecheck has on deposit therewith at the time suchcheck is certified an amount of money equal to theamount specified in such check. Any check so certi-fied by duly authorized officers shall be a good andvalid obligation against such bank, but the act of anysuch officer, clerk, or agent in violation of this sec-



tion may subject such bank to a forfeiture of itsmembership in the Federal Reserve System uponhearing by the Board of Governors of the FederalReserve System.

Government depositaries and financial agents

All banks or trust companies incorporated by spe-cial law or organized under the general laws of anyState, which are members of the Federal ReserveSystem, when designated for that purpose by theSecretary of the Treasury, shall be depositaries ofpublic money, under such regulations as may beprescribed by the Secretary; and they may also beemployed as financial agents of the Government; andthey shall perform all such reasonable duties, asdepositaries of public money and financial agents ofthe Government, as may be required of them. TheSecretary of the Treasury shall require of the banksand trust companies thus designated satisfactorysecurity, by the deposit of United States bonds orotherwise, for the safe keeping and prompt pay-ment of the public money deposited with them andfor the faithful performance of their duties asfinancial agents of the Government.

Admission to membership of mutual savings banks

Any mutual savings bank having no capital stock(including any other banking institution the capitalof which consists of weekly or other time depositswhich are segregated from all other deposits and areregarded as capital stock for the purposes of taxationand the declaration of dividends), but having sur-plus and undivided profits not less than the amountof capital required for the organization of a nationalbank in the same place, may apply for and be ad-mitted to membership in the Federal Reserve Systemin the same manner and subject to the same provisionsof law as State banks and trust companies, exceptthat any such savings bank shall subscribe for capitalstock of the Federal reserve bank in an amountequal to six-tenths of 1 per centum of its totaldeposit liabilities as shown by the most recent reportof examination of such savings bank preceding itsadmission to membership. Thereafter such subscrip-tion shall be adjusted semiannually on the same per-centage basis in accordance with rules and regulationsprescribed by the Board of Governors of the FederalReserve System. If any such mutual savings bankapplying for membership is not permitted by thelaws under which it was organized to purchase stockin a Federal reserve bank, it shall, upon admis-sion to the system, deposit with the Federal reservebank an amount equal to the amount which it wouldhave been required to pay in on account of a sub-scription to capital stock. Thereafter such depositshall be adjusted semiannually in the same manneras subscriptions for stock. Such deposits shall besubject to the same conditions with respect to re-payment as amounts paid upon subscriptions to cap-ital stock by other member banks and the Federalreserve bank shall pay interest thereon at the samerate as dividends are actually paid on outstand-ing shares of stock of such Federal reserve bank.If the laws under which any such savings bankwas organized be amended so as to authorize mutualsavings banks to subscribe for Federal reserve bankstock, such savings bank shall thereupon subscribefor the appropriate amount of stock in the Federalreserve bank, and the deposit hereinbefore pro-

vided for in lieu of payment upon capital stockshall be applied upon such subscription. If thelaws under which any such savings bank was or-ganized be not amended at the next session of thelegislature following the admission of such sav-ings bank to membership so as to authorize mu-tual savings banks to purchase Federal reserve bankstock, or if such laws be so amended and suchbank fail within six months thereafter to purchasesuch stock, all of its rights and privileges as a mem-ber bank shall be forfeited and its membership inthe Federal Reserve System shall be terminated inthe manner prescribed elsewhere in this sectionwith respect to State member banks and trust com-panies. Each such mutual savings bank shall complywith all the provisions of law applicable to Statemember banks and trust companies, with the regu-lations of the Board of Governors of the FederalReserve System and with the conditions of member-ship prescribed for such savings bank at the timeof admission to membership, except as otherwisehereinbefore provided with respect to capital stock.

Reports of affiliatesEach bank admitted to membership under this

section shall obtain from each of its affiliates otherthan member banks and furnish to the Federal reservebank of its district and to the Board of Governorsof the Federal Reserve System not less than threereports during each year. Such reports shall be insuch form as the Board of Governors of the FederalReserve System may prescribe, shall be verified bythe oath or affirmation of the president or such otherofficer as may be designated by the board of direc-tors of such affiliate to verify such reports, and shalldisclose the information hereinafter provided for asof dates identical with those fixed by the Board ofGovernors of the Federal Reserve System for reportsof the condition of the affiliated member bank. Eachsuch report of an affiliate shall be transmitted asherein provided at the same time as the correspond-ing report of the affiliated member bank, except thatthe Board of Governors of the Federal Reserve Sys-tem may, in its discretion, extend such time for goodcause shown. Each such report shall contain such in-formation as in the judgment of the Board of Gov-ernors of the Federal Reserve System shall be neces-sary to disclose fully the relations between suchaffiliate and such bank and to enable the Board toinform itself as to the effect of such relations uponthe affairs of such bank. The reports of such af-filiates shall be published by the bank under thesame conditions as govern its own condition reports.

Additional reports of affiliatesAny such affiliated member bank may be required

to obtain from any such affiliate such additional re-ports as in the opinion of its Federal reserve bankor the Board of Governors of the Federal ReserveSystem may be necessary in order to obtain a fulland complete knowledge of the condition of the af-filiated member bank. Such additional reports shallbe transmitted to the Federal reserve bank and theBoard of Governors of the Federal Reserve Systemand shall be in such form as the Board of Governorsof the Federal Reserve System may prescribe.

Failure to obtain reports of affiliatesAny such affiliated member bank which fails to

obtain from any of its affiliates and furnish any


1064 FEDERAL RESERVE BULLETIN" DECEMBER 1939

report provided for by the two preceding paragraphsof this section shall be subject to a penalty of $100for each day during which such failure continues,which, by direction of the Board of Governors ofthe Federal Reserve System, may be collected, bysuit or otherwise, by the Federal reserve bank of thedistrict in which such member bank is located. Forthe purposes of this paragraph and the two preced-ing paragraphs of this section, the term "affiliate"shall include holding company affiliates as well asother affiliates.

Dealings in investment securities and stockState member banks shall be subject to the same

limitations and conditions with respect to the pur-chasing, selling, underwriting, and holding of in-vestment securities and stock as are applicable inthe case of national banks under paragraph "Seventh"of section 5136 of the Revised Statutes, as amended.

Divorce of stock from stock of other corporationsAfter the date of the enactment of the Banking

Act of 1935, no certificate evidencing the stock ofany State member bank shall bear any statementpurporting to represent the stock of any other cor-poration, except a member bank or a corporation en-gaged on June 16, 1934 in holding the bank premisesof such member bank, nor shall the ownership, sale,or transfer of any certificate representing the stockof any State member bank be conditioned in anymanner whatsoever upon the ownership, sale, ortransfer of a certificate representing the stock of anyother corporation, except a member bank or a cor-poration engaged on June 16, 1934 in holding thebank premises of such member bank: Provided, Thatthis section shall not operate to prevent the owner-ship, sale, or transfer of stock of any other corpora-tion being conditioned upon the ownership, sale,or transfer of a certificate representing stock of aState member bank.

Holding company affiliatesEach State member bank affiliated with a holding

company affiliate shall obtain from such holdingcompany affiliate, within such time as the Boardof Governors of the Federal Reserve System shallprescribe, an agreement that such holding companyaffiliate shall be subject to the same conditions andlimitations as are applicable under section 5144 ofthe Revised Statutes, as amended, in the case ofholding company affiliates of national banks. A

copy of each such agreement shall be filed with theBoard of Governors of the Federal Reserve System.Upon the failure of a State member bank affiliatedwith a holding company affiliate to obtain such anagreement within the time so prescribed, the Boardof Governors of the Federal Reserve System shallrequire such bank to surrender its stock in theFederal reserve bank and to forfeit all rights andprivileges of membership in the Federal ReserveSystem as provided in this section. Whenever theBoard of Governors of the Federal Reserve Systemshall have revoked the voting permit of any suchholding company affiliate, the Board of Governorsof the Federal Reserve System may, in its discre-tion, require any or all State member banks affiliatedwith such holding company affiliate to surrender theirstock in the Federal reserve bank and to forfeitall rights and privileges of membership in the Fed-eral Reserve System as provided in this section.

Examination of affiliatesIn connection with examinations of State member

banks, examiners selected or approved by the Boardof Governors of the Federal Reserve System shallmake such examinations of the affairs of all affiliatesof such banks as shall be necessary to disclose fullythe relations between such banks and their affiliatesand the effect of such relations upon the affairs ofsuch banks. The expense of examination of affiliatesof any State member bank may, in the discretionof the Board of Governors of the Federal ReserveSystem, be assessed against such bank and, when soassessed, shall be paid by such bank. In the eventof the refusal to give any information requestedin the course of the examination of any such affiliate,or in the event of the refusal to permit such examina-tion, or in the event of the refusal to pay any expenseso assessed, the Board of Governors of the FederalReserve System may, in its discretion, require anyor all State member banks affiliated with such af-filiate to surrender their stock in the Federal reservebank and to forfeit all rights and privileges of mem-bership in the Federal Reserve System, as providedin this section.

NOTE: The provisions of law specifically referredto in section 9 and other provisions to which a Statebank which is a member of the Federal ReserveSystem is subject are printed in the Federal ReserveAct or the Appendix thereto as compiled under thedirection of the Board of Governors of the FederalReserve System.



NUMBER OF BANKS AND BRANCHES, 1933-1939[Figures for 1939 are preliminary]

End of year figuresexcept where otherwise indicated

N u m b e r of Bank ing Offices

1933 .19341935193619371938 _1939 (Sept. 30)

N u m b e r of Banks (Head Offices)

1933193419351936 .19371938 _1939 (Sept. 30) __ _

N u m b e r of B r a n c h e s '

1933 _.19341935 _ __ „ .1936. .19371938. .1939 (Sept. 30)

Total

17,94019,19619,15319,06618, 92718, 77418,667

15,02916,06315,86915, 66715, 38715 19415,050

2,9113 1333 2843,3993 5403,5803,617

Member banks

National

6,2756,7056,7156,7236,7456,7236,716

5,1545,4625,3865,3255,2605 2245,197

1 1211 2431 3291,3981 4851,4991,519

State

1,8171,9611,9532,0322,0752,1062,139

857980

1,0011,0511,0811 1141,144

960981952981994992995

Nonmember banks

Other than mutualsavings and

private banks

Insured1

9,

Notinsured i

3413 9, 579

8,5568,4368,3408,2248,129

8,7,6937,7287,5887,4497,3167,211

7

1,0881,043

997958926

J411,1081,0461.004

960917883

TO778

828848891908918

4239374143

Mutual

704705698693691690

4 688

579579570565563555552

125126128128128135136

Private

1032461431397973

5 69

98241138134746863

5555556

i Federal deposit insurance did not become operative until January 1, 1934.a The figures for December 1934 include 140 private banks which reported to the Comptroller of the Currency under the provisions of Section

21(a) of the Banking Act of 1933. Under the provisions of the Banking Act of 1935, private banks no longer report to the Comptroller of the Cur-rency and, accordingly, only such private banks as report to State banking departments are in the figures shown for subsequent years.

* Separate figures not available for branches of insured and not insured banks.* Comprises 50 insured banks with 21 branches and 502 uninsured banks with 115 branches.* Comprises 1 insured bank with no branches and 62 uninsured banks with 6 branches.6 The number of branches in head-office cities and outside head-office cities, respectively, were as follows:

In head-office cities Outside head-office cities

1933.___1934193519361937 _.1938.. _.1939 (Sept. 30).

1,7841,7761,7541,7491,7571,7431, 742

1,1271,3571,5301,6501,7831,8371,875



ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES, JANUARY 1—SEPTEMBER 30,1939[Preliminary figures]

Analysis of Bank Changes

Number of banks on December 31 1938

Increases in number of banks:Primary organizations (new banks) * -

Decreases in number of banks:Suspensions _ _ _Voluntary liquidations 2 _Consolidations, absorptions, etc

Inter-class bank changes:Conversions—

State into national -National into State _ _

Federal Reserve membership—3

Admissions of State banks . « _ _ _ . -»Withdrawals of State banks

Federal deposit insurance—4

Admissions of State banksWithdrawals of State banks .

Net increase or decrease in number of banks

Number of banks on September 30,1939

Analysis of Branch Changes

Number of branches on December 31, 1938

Increases in number of branches:De novo branches -Banks converted into branches

Decreases in number of branches:Suspension of parent bankOtherwise discontinued «« -

Inter-class branch changes:Branches of a National bank which became a State member bankBranch of a National bank which became a branch of a non-

member bank - -Branches of a nonmember bank which became a National bankBranches of nonmember banks which became branches of State

Tnembpr bfvnks 5

Net increase or decrease in number of branches

Nmnber of brapches'^p September 30,1939

Total

15,194

+17

-36-28-97

-144

15,050

3,580

+35+37

—9-26

+37

3,617

Member banks

National

5,224

+3- 4- 3

- 2 6

+13-10

-27

5,197

1,499

+5+11

- 4

- 4

—1+13

+20

1,519

State

1,114

+1- 2- 3- 4

- 9+2

+49- 4

+30

1,144

992

+5+4- 7

- 1 0

+4

+7

+3

995

Nonmember banks

Other than mutualsavings and

private banks

Insured

7,316

+11

- 2 0- 1 0- 6 0

- 4

+8-49+4

+15

-105

7,211

908

+22+21

- 2-12

+1- 1 3

- 7

+10

918

Notinsured

917

+2- 9- 8

A

-15

-34

883

41

+2

+2

43

Mutualsavings

555

- 3

- 3

552

135

+1

+1

136

Private

68

- 1- 4

- 5

63

5

+1

+1

6

i Exclusive of new banks organized to succeed operating banks.a Exclusive of liquidations incident to the succession, conversion and absorption of banks.8 Exclusive of conversions of national banks into State bank members, or vice versa, as such conversions do not affect Federal Reserve mem-

bership.4 Exclusive of conversions of member banks into insured nonmember banks, or vice versa, as such conversions do not affect Federal Deposit

Insurance Corporation membership.* Includes 2 branches of an insured nonmember bank which was absorbed by a State member bank and 5 branches of 3 insured nonmember

banks which became State member banks.Back figures—See Annual Report for 1938 (tables 13 and 14), and BULLETIN for November 1937, pp. 1084-1122.



RESTORATION OF NETHERLANDS GOVERNMENT'S POWER TO PROHIBITTHE EXPORT OF GOLD

The embargo on the exportation of goldfrom the Netherlands which came into forceon October 1, 1936, was repealed by Royaldecree of June 28, 1938. An act of Novem-ber 25, 1938, restores the effect of the originalmeasure of 1936. The Crown is now au-thorized, on recommendation of the Ministerof Finance, to prohibit temporarily the ex-port of gold coin and gold bullion. Powerto authorize exemptions from the prohibitionwill be granted to the Minister wheneverthe embargo becomes effective. The amend-ments made by the act of November 25,1938, came into force on December 10, 1938.

An unofficial translation of the act ofSeptember 30, 1936 (Staatsblad No. 101),as amended by the act of November 25,1938 (Staatsblad No. 408), published as anappendix to the Annual Report of the Nether-lands Bank for 1938-1939, is given herewith.The two preceding measures relating to theembargo on gold were published respectivelyin the BULLETIN for December, 1936 andOctober 1938.

AUTHORIZATION TO PROHIBIT THE EXPORT OF GOLD

Article 1. As soon as this act comes into force, theroyal decree of September 26, 1936, No. 52, pro-hibiting the export of gold coin and gold bullionshall acquire force of law as from the day on whichit was signed. The prohibition shall remain validuntil repealed by royal decree; its repeal shall bepublished in the Nederlandsche Staatscourant.

Article Ibis. The Crown is authorized, on the rec-ommendation of the Minister of Finance, to prohibittemporarily the export of gold coin and gold bullion,as from a date to be fixed by the Minister of Financeand with the proviso that exemptions from the pro-hibition may be granted in special cases by or on be-half of the said Minister. The provision of the sec-ond sentence of article 1 shall apply to this pro-hibition.

After the issue of a royal decree as referred to inthe first paragraph of this article a bill shall beintroduced without delay in the States General inorder to have the prohibition sanctioned by law.

If the bill be withdrawn, or rejected by the StatesGeneral, the royal decree shall be repealed withoutdelay.

Article 2. The provisions of the act of August 3,1914 (Staatsblad No. 334), as amended by existingor future laws, shall apply to the prohibition ofarticle 1 and article Ibis in a like manner as wouldbe the case if the prohibition were decreed by virtueof the said act, except in so far as the prohibitionitself contains provisions to the contrary.

Article 3. This act shall come into force on the dayafter its promulgation.



ANNUAL REPORT OF THE NETHERLANDS BANK

The annual report of the Netherlands Bankfor the year ending March 31, 1939, was pre-sented to the general meeting of shareholderson June 6, 1939, by Dr. L. J. A. Trip, Presi-dent of the Bank. Sections of the officialEnglish translation of the report publishedby the Bank are given herewith: 1

International political developments.—Thefinancial year which ended on March 31,1939,was largely influenced by the development ofinternational political relations. These rela-tions created constant unrest and uncertaintywhich turned, on several occasions, into panicand war-scare. This led to armaments beingincreased to a level which it will be impossibleto maintain. It is comprehensible and ex-plicable that in a world in which the menaceof armed forces plays as important a roleas it; does today, no other possibility can beenvisaged than the concentration of all forcestowards strengthening the fighting services.This also applies to countries which nobodyfor a moment suspects of aggressive inten-tions. It is, however, incomprehensible andinexplicable that the world has neither thestrength nor the will to leave the road to ruinand to put an end to the senseless race. It issurely clear to all who wish to see, that nocountry will be able, in the long run, to keepup the present-day tempo and the present ex-tent of its armaments and expenditure. Ac-cording to an estimate relating to this matter,the various governments together must bor-row almost 2,000,000,000 guilders a month tocover their budgetary deficits.

Under the circumstances thus briefly de-scribed one asks oneself whether there is anysense in economic and financial contempla-tions as, long as there is so little certaintyabout political developments. For it is inthese developments, as experience teachesagain and again, that the decisive factor forthe future lies. Economic revival, financialrecovery and monetary stability are unthink-able unless international political relationsshow a considerable improvement, the fear ofwar is banished, and armaments are reducedto a reasonable level. In the meanwhile itwould be inadmissible, in my opinion, to as-sume that the conditions just described couldnot be fulfilled. We may not give up the con-

1 The report, which is available also in Dutch, contains in addi-tion sections dealing with the money market, interest rates, thecapital market, exchange rates, etc., together with a number oftables. For earlier reports, see BULLETIN for August 1938 and1937, July 1936, 1934, 1933, September 1932, August 1931, etc.

viction that the world will come to its sensesand be able to create the possibility forcollaboration and mutual support. Two re-flections are the main foundation of this con-viction. Firstly, there is no doubt that a newworld war, at the present stage of techniqueand armaments, would have such annihilat-ing consequences, not only of a materialnature and for the armed forces in directconflict, but also for the civil population,especially women and children, that commonsense refuses to accept as possible the un-chaining of such slaughter and the willing-ness of the peoples to subject themselves to it.Secondly, it is a fact that a world war wouldlead to such chaos that there could be noquestion of gathering the fruits of victory,and the present-day powers would not sur-vive the calamity.

International financial and economic devel-opments.—The above remarks not only leadto the conclusion that the economic, financialand monetary future is absolutely uncertain,dependent as it is on international politicalrelations; it implies at the same time that itis exceedingly difficult, if not impossible, toform an accurate idea of the present situationin the three spheres just mentioned. Thesituation is subject to the influence of somany abnormal, artificial and unsound fac-tors that a correct estimate as to the share ofeach of these factors is impossible. More-over, the actual situation is repeatedly under-going radical changes at very short notice.

The unlimited armaments have alreadybeen mentioned above. Next, attention mustbe called to the ever-advancing isolation ofindividual countries. Despite the admissionthat more extensive commercial intercourseis of the most vital importance, every daybrings new impediments to imports and, con-sequently, to exports. In practice, all coun-tries are continuing their efforts to furthertheir exports, often accepting most unsoundand unfruitful means, and at the same timeto restrict their imports. That such effortshave no chance of success is self-evident. Itis impossible to reserve the home market forhome prgduction and at the same time to en-large sales on foreign markets. In realitythese efforts to further exports whilst at thesame time restricting imports are only partof the whole system of artificial and in manycases mutually contradictory measures which



are being taken to a growing extent in vari-ous countries and styled economic policy.

Among these measures, those in the mone-tary and financial field play an importantpart. A progressive development can betraced here. In the beginning it was expectedthat a lowering of the gold value of monetaryunits would lead to a corresponding rise incommodity prices while a policy of cheapmoney and expansion of credit was to stimu-late private enterprise. When this expecta-tion was not fulfilled and the said policywould apparently not yield the desired re-sults, refuge was taken in a great increasein government expenditure, which causedbudget deficits to grow rapidly. It was sup-posed that this would make private businessrevive in a relatively short time, and that thegovernment would then be able to reduce itsintervention within the limits of its revenue.This expectation was not realized either, withthe result that the level of government ex-penditure and budget deficits was maintainedand even raised on the assumption that, inthis way, the national income and prosperitywould increase. Not in all countries were themotives of the government's policy along thelines just indicated stated in so many words.In several cases this reasoning was even ex-pressly repudiated. But in actual fact thingshave on the whole moved in the directionindicated above. Depreciation of nationalmonetary units, a policy of cheap money,great increase of government expenditure,growing budgetary deficits, which are takingon a mpre and more permanent character, arethe principal characteristics of the develop-ment. In my opinion it cannot be said thatthis development has led to a lasting improve-ment. Nor is it reasonable to suppose thatone can go on in this direction much longer.This applies especially to the policy of antici-pating on future income and future savings,which is being followed nowadays in variouscountries. Even in the wealthiest countriesthere is a limit to the reserves which theysacrifice in order to pursue their present lineof action.

As to the measures in the economic field, Ihave already mentioned the continuous cur-tailment of international trade which is goinghand in hand with persistent endeavors toreserve the home market for home produc-tion. As an inevitable consequence, govern-ments have come to interfere to a rapidlyincreasing extent in almost every branch of

economic life. A process of cartellizing na-tional business life under the guidance andstimulus of the government is well under wayin various countries. This will no doubtresult in rigidity followed by higher pricesand increased cost of production. Experiencehas taught that cartels and trusts involve atendency to maintain or force up price levels.As long as the government refrained from co-operation and stimulation, there was a cer-tain corrective in the freedom of participationand in the initiative and competition of out-siders. If the government bars the way tothis corrective, as seems to be more and morethe case, harmful consequences will makethemselves felt. The burden which is con-sequently put on the consumer, added to theinfluence of monetary and fiscal measures,will not fail to lead to impoverishment, adecrease in consumption and the growth ofunemployment. The power of the governmentreaches far, but not so far as to enable it toenforce greater consumption when the re-quired means and confidence on the part ofthe consumers are lacking. It is true that thegovernment could, by distributing money,create the impression for a certain time thatthe consumers have increased purchasingpower at their disposal; but, as experi-ence has already taught and as the futurewill certainly show once more in a painfulmanner, this is only a question of shiftingpurchasing power, the result of which can beneither sound nor lasting. Only cheaper andmore extensive production, gradually increas-ing international trade, and the liberationof economic life from the innumerable im-pediments which are constantly neutralizingthe essential elasticity in prices and cost ofproduction, and from the excessive burden oftaxation in various forms, which is stiflingprivate initiative and investment, can bringgoods within the reach of consumers on alarger scale and at lower prices. Only thenwill sound and lasting purchasing power anda permanent increase of employment becreated.

I know that my view is not in agreementwith the wishes of the powers that determinethe line of action in most countries. But thismay not deter me from bringing to the foreand from defending that view again andagain, particularly because I am convincedthat sooner or later the facts will show thatwe cannot go on along the road which weare following at present, and that we shall



have to change our course from sheer neces-sity. It will then be deplorable that so muchmore has been lost and that the sacrifices tobe made will weigh so much more heavilythan would have been the case if the way ofleast resistance had been abandoned sooner.

After what has been said above, the readerwill not be surprised that my expectationsfor the future, even apart from the inter-national political situation, cannot be favor-able. That the considerable decline in eco-nomic activity which was noticeable in 1938as compared with 1937, did not degenerateinto a crisis, and that consequently a compari-son with 1936 does not lead to downrightunfavorable results, cannot change these ex-pectations. The same applies with regardto the improvement shown by the secondhalf of 1938 as compared with the first partof that year. Apart from the fact that thefirst months of 1939 saw the end of this im-provement, it suffices to refer to the manyartificial and unsound factors and measureswhich I have already mentioned and whichare little apt to free the world of the ever-recurring declines in trade which have beenexperienced since the end of the war of 1914.

The decline in 1938 is shown by the follow-ing index figures, in the computation of which1929 is taken as 100.

Industrial world production, which rosefrom 109.5 in 1936 to 117.7 in 1937, declinedto 109.8; world trade, the value of which, ingold, had reached 46.4 in 1937, after havingbeen 37.4 in 1936, diminished to 40.2; thesea freights of tramp shipping, which hadreached the high figure of 132.6 in 1937 afterhaving been 87.4 in 1936, fell to 100.9 in 1938;shipbuilding moved from 89.7 in 1936 to 102.1in 1937 and to 84.4 in 1938; wholesale pricesfell from 78.6 in 1937 to 63.0 in 1938 and thuscame below the 1936 figure of 69.7.

International monetary developments.—Inthe monetary field there has also been a de-cline. This can be seen from the followingsurvey which gives the gold value of thenational monetary units of a number of coun-tries on March 31, 1938, and March 31, 1939,respectively.

The changes that occurred were all in adownward direction. The most importantwas the movement of the French franc, whichshowed a further decline of its gold valueby 13.60 per cent. After that comes the Jap-anese yen with 5.96 per cent followed at ashort distance by the pound sterling and the

DEVELOPMENT OF THE GOLD VALUE OF VARIOUSMONETARY UNITS

U. S. dollarBelgaGuilder. ._Pound sterlingDanish crown .Norwegian crownSwedish crownFrench francSwiss franc _ _Japanese yen.. . . __ . .

Goldvalue

March 31,1938

Goldvalue

March 31,1939

(In fine grammes)

0.88630.14980. 49074. 40300.19650. 22120. 22690.02720. 20320. 2568

0.88630.14920. 47054.14950.18520.20850. 21380.02350.19890. 2415

Declinein

per cent

0.404.125.765.755.745.77

13.602.125.96

monetary units of the other countries of thesterling bloc with about 5.75 per cent. Thedecline of the Netherlands guilder amountedto 4.12 per cent while that of the Swiss francwas only 2.12 per cent.

These figures show once more that thereis still no question of stability in the rates ofexchange and that the monetary agreementin existence between the United States, GreatBritain, France, Belgium, the Netherlandsand Switzerland provides no adequate se-curity in the monetary sphere. Capital move-ments, which periodically assumed large pro-portions under the influence of internationalpolitical difficulties, must be considered asthe main cause of the fluctuations in the ratesof exchange. There has been a strong flowof capital to America. In addition, the tradebalance of the United States showed a sub-stantial excess of exports of more than$1,100,000,000.

Imports into this very important countrydeclined in value by 35.8 per cent while thevalue of exports only diminished by 7.6 percent. This situation stands in peculiar con-trast with the position of the United Statesas a creditor country, and is naturally aptto increase the existing difficulties in no smallmeasure. Notwithstanding the very wel-come efforts of the Secretary of State of theUnited States to further international com-mercial intercourse, which once more foundexpression in the trade agreement with GreatBritain, the results have until now remainedconsiderably below what is desirable andnecessary.

In the light of the above it is not surprisingthat the flow of gold to the United States didnot only continue but showed a substantialincrease. The monetary gold stock of that



country amounted to $12,760,000,000 at theend of 1937 and had risen to $14,512,000,000by the end of 1938. This increase exceededthe total gold production of the world in 1938by no less than $466,000,000. It has con-tinued during the current year, amountingin the first quarter to $746,000,000.

These facts illustrate the lack of balancein the economic structure of the world of to-day. Until the return of international con-fidence, which forms the essential basis fora more extensive traffic in goods, credit andcapital, an improvement can hardly be ex-pected. The same applies to greater stabilityin the rates of exchange. As to this point,it is perhaps an advantage that monetarymanipulations are less in the center of inter-est at present than they were a few yearsago, because the inexpediency of such manip-ulations is now recognized in wider circles,and because the freedom in the monetary fieldwhich nearly all countries have now reservedfor themselves makes it less likely for anindividual country to be able to improve itsposition by making use of this artificial de-vice. If this is correct, the essential impor-tance of a firm maintenance of the exchangerates is obvious, and its necessity should befully taken into account when conducting thenational economic and financial policy.

The various equalization funds and cen-tral banks have endeavored in close collabo-ration to prevent serious shocks and violentfluctuations which, without this cooperation,would no doubt have arisen on several occa-sions in the past year. In this connectionthe monetary agreement above referred tohas doubtless rendered a great service. Itsmaintenance and, as far as possible, its ex-tension and strengthening are among thefirst requirements of practical politics.

In Great Britain an act was passed onFebruary 28, 1939, to value the gold stock ofthe Central Bank once in each week.2 I can-not attach much importance to this measureas a matter of principle. What has actuallyhappened is, that a change has been made inthe method of bookkeeping, which has beenbrought more into line with reality. In thisconnection it must be borne in mind thatalmost the whole of the book profits whichresulted from the first revaluation, was trans-ferred to the Exchange Equalization Accountso that a reserve in the books of this fundtook the place of the latent reserve contained

2 See BULLETIN for April 1939, page 271.

in the gold stock of the Bank of England onaccount of the fact that that stock was stillvalued at the old price. It is generally—andrightly—admitted that this policy of reserv-ing the profits of the revaluation is an obviousrequirement of sound financial management.

Gold production.—The world's gold pro-duction rose to 1,142,925 kilograms in 1938,thus exceeding the corresponding figure for1937 by more than 5*4 per cent as againstan increase of 5 per cent from 1936 to 1937.A new record was thus attained in the pastyear. The value of the production amountedto $1,286,250,000 in United States dollars ofthe new parity. As has already been men-tioned, considerably more than this amountof gold flowed to the United States in 1938.According to the statements made on thesubject it may be assumed that the monetarypolicy of the United States will be maintained.The importance of this both to the world andto the country itself can hardly be overesti-mated. There is no denying that the worldprice of gold is founded on this policy. Ifthe present fixed relation between the dollarand gold were abandoned, a general monetarydislocation would, in my opinion, set in, whichwould involve very detrimental consequencesfor economic and financial conditions in thewofld including America herself. The resultswhich the manipulations of various monetaryunits have brought about have by no meansfulfilled expectations. In no case can theyform the foundation of an international mon-etary system which could satisfactorily re-place the gold standard. That it was possibleto attain a certain degree of stability of therates of exchange is, I am convinced, to beattributed to the close connection with goldwhich was created by the scheme adopted inthe United States. If experience, especiallythat of the last few years, has placed onefact beyond doubt, it is this, that we cannotdispense with gold as an international meansof payment. This leads, in my opinion, tothe inevitable conclusion that a fixed basison which gold is purchased and sold in thevarious countries is necessary and that thefactors which govern the mutual relationsbetween cost and price levels in the countriesconcerned must leave room for such modi-fications as are necessary to maintain thisbasis.

Monetary gold stocks.—As regards themonetary gold stocks, the lack of completedata about the various equalization funds



makes it impossible, this year no less thanlast, to give an exact survey. The afflux ofgold to six countries 3 exceeded the world'sgold production of the last four years by morethan 13 per cent. The flow to the four coun-tries (the United States, Great Britain, Neth-erlands and Switzerland) whose stocks showan increase, exceeded the production by al-most $3,600,000,000. The uneven distribu-tion of the monetary gold is clearly seen fromthese figures. It is also illustrated by the factthat more than 80 per cent of the total esti-mated gold stock of the world is in the handsof the six countries included in the list. Thismaldistribution, as well as the still increasinggold production, are problems which havebeen pushed into the background under thepresent circumstances and can only be solvedwhen the world is prepared to return tocollaboration in the economic and financialsphere.

Conditions in the Netherlands.—What Ihave said above regarding the developmentof the world applies on the whole also to theNetherlands. There have been no importantdifferences between the course of events inthis country and that in the world, as far asthe latter was not influenced by quite specialcircumstances. According to the figures anddata available, it cannot be said that develop-ments in the Netherlands were unfavorableas compared to those in other countries withwhich comparisons can be made. The declinein trade which occurred in 1938 also madeitself felt here.

What I have said above about the numer-ous artificial and often contradictory meas-ures which render it difficult to make a correctdiagnosis of the real situation and which areapt to increase rather than to diminish thelack of balance in the economic structure, alsoapplies to the Netherlands. The Netherlandstoo are continuing to restrict imports despitethe very exceptional importance of interna-tional trade and shipping to the country onaccount of its geographic situation, its his-tory and the character of its population. Inthe Netherlands, too, one can trace the phe-nomena of increased government expenditure,a long series of growing budgetary deficits,depreciation of the monetary unit and pres-sure on the consumer and on private enter-prise. It is strange that some circles are

3 The United States, Great Britain, France, Netherlands,Switzerland and Belgium; comparison is based on gold holdings,at the end of 1934 and 1938, of central banks of the six countriesplus $1,800,000,000 in the United States Stabilization Fund. Goldin other equalization funds is left out of account.

pleading for more rapid progress along theroad of the above-mentioned financial andmonetary measures, although the bad resultsin the countries where they have been mostconsistently and extensively enforced areobvious.

I do not mean to say with the above that theNetherlands could have maintained their oldpolicy of laissez-faire under the circumstanceswhich have developed in the world, and thatthey could have refrained from all govern-ment interference with economic life. It isabsolutely essential that foreign aggressionshould be warded off, and that the means ofthe country's national existence should bedefended and maintained. But it is equallyessential fully to realize the necessity not onlyof avoiding a rise in the cost of productionand the cost of living in the Netherlands, butof furthering a reduction in the level of thesecosts. In my opinion the future cannot befaced confidently in this respect. The processof cartellizing, which is at present going onin the Netherlands under the guidance andinsistence of the Government, is sure to havean unfavorable effect. The same applies tothe considerable rise in the tariff of protec-tive import duties which became effective afew months ago. If the Government inter-feres on a large scale with economic condi-tions and the development of economic life, itcannot, in my opinion, refuse to take uponitself the care and responsibility for the levelof the cost of production and the cost of liv-ing in the country itself, and for the main-tenance of the required equilibrium in thisrespect with the principal countries withwhich the Netherlands have to compete in-ternationally. It is not by means of exportbounties but only by the maintenance of therequired relation between the said costs athome and abroad, and by the gradual im-provement of this relation, that foreign com-petition can be sustained with success. Tomy mind, there is every reason to pay closeattention to this point. There is little doubtthat there is a growing lack of equilibriumbetween costs and prices in the "sheltered"part of Holland's economic life on the onehand, and costs and prices in those tradesand industries that are dependent on inter-national competition, on the other. It is tobe feared that this disharmony will increaseas a result of the protective measures thathave been taken, and of the organizationamong producers for the home market.



The course of affairs just indicated seemsto me to involve danger for the internationaleconomic position of our country and for asound and lasting extension of employment.In this connection attention must also becalled to the new social and fiscal burdenswhich will weigh heavily on industry andtrade if the measures proposed and an-nounced by the Government are accepted.As far as I have been able to calculate, theadditional burden which trade and industrywill have to bear, as a result of the new meas-ures alluded to, will exceed 60,000,000 guil-ders a year. It is clear that this will reducestill further the spirit of enterprise, thepossibilities to invest and the revival ofeconomic life which are already so muchhampered by existing circumstances and gov-ernment interference. Experience in othercountries has repeatedly shown that a realrecovery is only attainable when business lifecan work and employ people on the founda-tion of reasonable prospects and possibilities.It is difficult to understand how increasedsocial and fiscal burdens of such magnitudecan be reconciled with the very correctopinion expressed by the Government itself,that a reduction of unemployment can bestbe attained by creating such conditions forindustry and trade as to enable them to em-ploy the largest possible number of work-men. Very careful consideration should begiven to the questions whether, under thepresent circumstances, expensive social meas-ures are justified and whether economic lifein the Netherlands may in addition be bur-dened with new taxes which will lead toserious fiscal and economic consequences. Ido not hesitate to answer these questions inthe negative. This does not mean that thestate of affairs which has been arrived at ingovernment finances, particularly as a resultof armament and unemployment expenditure,does not call for radical measures. On thecontrary, the budgetary prospects of the Gov-ernment and the municipalities make suchmeasures an urgent necessity. In order topreserve its most valuable asset, its freedomand independence, the Dutch nation will haveto make considerably heavier sacrifices thanit has, until now, been prepared to make.That under the prevailing circumstances acertain loss of capital and reserves is as in-evitable in the Netherlands as it is elsewheremay be true; but this does not alter the factthat a correct understanding of the real situa-

tion has not penetrated sufficiently, and that,consequently, the impoverishment will as-sume larger proportions than is in accordancewith the required provision for the futureof the country and the people. As thingslook at present, the Dutch nation will not beable to maintain its present standard of liv-ing. Unless it is prepared to make the in-evitable sacrifices now and, instead of clingingto the maintenance of its nominal income, tocooperate in reducing public expenditure,cost of production and cost of living, greatersacrifices will be imposed by the force ofcircumstances. Some time ago I cooperatedin a public appeal and warning against thetendency referred to above. I am firmly con-vinced that that which was explained andemphasized in the document concerned, isright and will be confirmed by future develop-ments. In the meanwhile it has appearedthat those who bear the responsibility are ofanother opinion or in any case that they donot at present feel at liberty to act accordingto the above-mentioned appeal. Under thesecircumstances it is useless to enter intofurther djetailed argumentation. The futurewill have to pass judgment, and the facts willshow how long and with what results the roadnow taken can be followed.

The Netherlands Bank.—There were nochanges of importance in the task and activi-ties of the Netherlands Bank during the pastyear. The management of the EqualizationFund continued to demand constant attentionand extensive work. This applies to thetechnical execution as well as to consultationswith the Government and with the manage-ments of foreign equalization funds and cen-tral banks. As is well known, the buyingand selling of gold, which was one of theprincipal parts of the activities of the Nether-lands Bank, was transferred to the Equaliza-tion Fund when the gold standard was aban-doned. In this way a source of profit wascut off, the comparative significance of whichhad grown in connection with the extensivegold movements of post-war years on the onehand, and on account of the decline in theBank's credit business on the other. Experi-ence has shown that the remuneration whichthe Bank receives for the management of theFund is not sufficient to make good the lossjust mentioned.

As regards the general line of development,there is a considerable difference between theyear under review and the year 1937-1938.



This difference does not lie in the characterof the main factors which dominated goldmovements and the course of the rates ofexchange. As has already been recordedabove in connection with the general mone-tary situation, these factors again consistedmainly in capital movements. The differenceto which I am referring, lies in the fact thatthe capital movements of which I gave ashort survey in my last report, and whichcaused the demand for guilders considerablyto exceed the supply, did not continue in 1938-1939. This can be seen from the figures ofthe gold stock of the Netherlands Bank. Letit be clearly understood, however, that theyonly indicate a tendency and are no gauge ofthe extent of the movements. At the end ofthe financial year 1937-1938 the Bank's goldstock amounted to 1,466,200,000 guilders.After an initial increase to over 1,481,200,000guilders this level was maintained, with slightfluctuations, from the beginning of June,1938, to the beginning of December, 1938,when it fell to 1,461,200,000. It startedfalling again in the second half of February,1939, and continued to do so until, by the endof the financial year, the gold stock haddiminished to 1,322,500,000 guilders. At thetime of writing it amounts to 1,209,500,000guilders. As can be deduced from thesefigures and from other data at our disposal,capital is moving away from the Nether-lands. The political factors, repeatedly re-ferred to above, have led to the withdrawalof the foreign money that had sought refugein the Netherlands. The buying of foreign—especially American—securities has also ex-erted an influence, although this factor hasnot been so important as one might supposejudging by the number of foreign securitiesthat have been* introduced here. Finally,though one cannot speak of capital flight,there has been a certain transfer of liquidfunds from the Netherlands to other coun-tries. There is no reason to deplore this.That foreign funds which were held in theNetherlands at short notice have gone again,can only be considered as an advantage, whilethe other two factors mentioned above havenot in the least affected the position of theNetherlands and of the guilder.

Another point which should be mentionedin this connection, is that, as far as can bejudged at present, the balance of paymentsof the Netherlands for 1938 presents a some-what different picture from that for 1937,

when the current items showed a credit bal-ance. However carefully and conscientiouslythe official figures have been compiled, nodefinite conclusions can be drawn from themas to the question whether, in a given year,the current items have been in equilibrium,or what the amount of the credit balance, ifany, has been. For 1937 this becomes evidentwhen one sees that the figures leave an un-explained difference of no less than 499,000,-000 guilders, an amount which exceeds theentire debit balance on merchandise accountby 97,000,000 guilders. This does not alterthe fact that the compilation and publicationof the figures are of great importance inorder to indicate the direction in which thevarious known items are moving. It seemsto me that the remittance relation betweenthe Netherlands and the Netherlands Indiesis a source of great difficulty in judging agiven year. For example, the profits ofcompanies working in the Netherlands Indiesare not remitted as separate amounts. Theyare included in the yield of the products ex-ported, and the year in which they are re-mitted rarely coincides with the year in whichthey are distributed among those entitled toa share in these profits. The latter year, how-ever, is taken as that of the remittance incompiling the official figures.

Although some reservations should be madeon account of what has just been said, itshould be pointed out that the import balancefor 1938 on merchandise account showed onlya decrease of 26,000,000 guilders as comparedwith 1937 while, on the other hand, the pro-ceeds of the exp.orts from the NetherlandsIndies as well as the yield of the services ren-dered by the Netherlands—on account of thefall in freights—have suffered a considerabledecline. Considering the strong position ofthe guilder and its gold cover, this develop-ment obviously constitutes no reason foranxiety. It may, to a certain extent, havecontributed in the direction of the capitalmovement referred to above.

The depreciation of the guilder increasedduring the financial year under review. OnMarch 31, 1938, it amounted to 18.68 percent as against 22.02 per cent on March 31,1939. Thus the guilder once more arrived atthe level at which it stood at the beginningof October 1936. While the percentage ofthe depreciation decreased during the periodin which the demand for guilders exceeded



the supply, it has increased now that thesituation is reversed.

Although the extremely abundant supplyon the money market has been somewhat in-fluenced by the efflux of gold, the quotationshave nevertheless remained at a very lowlevel. Except during a few days in Septem-ber 1938, signs of an upward tendency werenot perceived until the last month of the finan-cial year, and this largely under the influenceof the international political situation. Ifthis upward movement in money rates per-sists, it may lead to the restoration of morenormal conditions in the money market andenable the Netherlands Bank to regain itsinfluence on that market. The conditionsthat were created by the strong flow of capitalto the Netherlands can hardly be consideredsound. The efflux of foreign capital has hadpractically no effect on the rates of interestin the money market. This is to be attributedto the correct policy which the commercialbanks in the Netherlands have followed withregard to their liquidity. If, however, theinternal situation, apart from the withdrawalof foreign money, should cause a contractionon the money market, the inevitable conse-quences as to the rates of interest would haveto be accepted, although it would be advisableto prevent the rates from going up too sud-denly. Efforts to maintain the recent ab-normally low rates of interest by artificialinterference must, in my opinion, be rejectedas unsound. In the long run they would,moreover, be doomed to failure.

When the British authorities took strongmeasures at the beginning of 1939 to defendtheir currency and to restrict speculationagainst sterling, the Bank of England askedthe other parties to the monetary agreementto cooperate in these endeavors by putting astop, as far as possible, to gold transactionsin their markets which might exert specula-

tive pressure on sterling. As Holland is oneof the parties to the monetary agreement,the Netherlands Bank was among the cen-tral banks to which the Bank of Englandaddressed itself in this connection, and wehave gladly given the desired cooperation.We were of opinion that speculation was in-deed playing an important part in weakeningthe position of the British currency; and wefelt that a further decline of sterling andwith it of the monetary units of the coun-tries belonging to the sterling bloc, wouldinvolve serious consequences of a monetaryand economic nature. We therefore invitedthe commercial banks which had, a few yearsago, joined the gentlemen's agreement todefend the guilder to collaborate; and to oursatisfaction all institutions concerned de-clared themselves ready to act according toour wishes. The measures taken by theBritish authorities had a favorable result.Not only could the sterling-dollar rate bemaintained; it showed a marked improve-ment by rising from 4.628 on January 3,1939,to 4.681 on March 31, 1939.

For the sake of completeness, mentionshould be made of the fact that the embargoon the export of gold coin and gold bullion,issued in this country when the gold standardwas abandoned, and sanctioned by the actof September 30, 1936 (Staatsblad No. 101),was repealed upon our suggestion by theMinister of Finance as from August 7, 1938.In practice, the embargo had already beensuspended since June 17, 1937, licenses toexport gold having been granted freely andon an unlimited scale from that date. Byvirtue of the act of November 25, 1938(Staatsblad No. 408), the Minister of Financeis authorized to prohibit the export of goldagain under certain circumstances.4

4 The text of the Act of September 30, 1936, as amended bythe Act of November 25, 1938, is given on p. 1067.



BALANCE SHEET OF THE NETHERLANDS BANK AS OFMARCH 31, 1939, AND MARCH 31, 1938

[In thousands of guilders]

Assets

Gold coinGold bullionSilver coinCorrespondents abroadForeign bills.Domestic billsLoansAdvances in current accountAdvances to the Government (law of May 27,

1932)Investments in shares listed by the Amsterdam

Brokers' AssociationShares of the Bank for International Settlements,

of which 25 per cent is paid inOther investmentsNet balance with banking correspondentsCash items _._Interest accrued on loansInterest accrued on advances in current account..Interest accrued on investmentsCommission accountBank premises and furniture

Total assets.__

March31, 1939

106, 6381, 215, 834

23, 8156,0112,7009,728

73, 713

134, 310

7,630

34, 525

1,2098,657

25335

47912035140

4,5801, 630, 626

March31, 1938

113, 5571, 352, 681

13, 7444,2915,4009,111

77, 718221, 545

34, 994

1,2097,784

61966

54212835871

4,580

1, 857, 306

Liabilities

Notes in circulationCurrent accountsOther demand liabilitiesCapitalReserve fundSpecial reservePension fundUnearned discount on domestic billsUnearned discount on foreign billsDividends payableBalance of profits at the disposal of the general

meeting

Total liabilities.

March31, 1939

1,014,184571, 493

8220,0004,2777,757

12, 12062

23

682

1, 630, 626

March31, 1938

934,313877,879

45320,000

4,8617,102

12,00033

23

lr 857, 306



ANNUAL REPORT OF THE CENTRAL BANK OF THE ARGENTINE REPUBLICThe annual report of the Central Bank of

the Argentine Republic for the fourth finan-cial period, covering the year ending Decem-ber 31, 1938, was submitted by the Board ofDirectors to the Meeting of ShareholdingBanks in March 1939. Sections of the officialEnglish text are given herewith:

As usually happens when the trade cycleis in its downward phase, the balance of ourinternational payments for 1938 closed witha substantial deficit. It was therefore neces-sary to make full use of the gold and foreigncurrency holdings of the Exchange Fundwhich thus fulfilled the specific purpose forwhich they were accumulated.

This disequilibrium had its origin in theexodus of floating funds half-way through1937 and continued later as exports declinedwhile imports remained at a high level,thereby causing the deficit in our balanceof payments to reach 582,000,000 pesos in1938. Of this total the official and free ex-change markets were responsible for 313,-000,000 pesos and 269,000,000 pesos respec-tively.1

To meet this adverse balance it was neces-sary to release 461,000,000 pesos in gold andforeign exchange from the Fund, in additionto 121,000,000 pesos, obtained by the Na-tional Government from foreign loans.

It was possible to effect the whole of thisconsiderable transfer of foreign exchangewithout causing any uneasiness amongst thegeneral public who, in Argentina as in othercountries, are apt to look upon gold exportswith a degree of apprehension which is justas exaggerated as the optimism engenderedby an influx of that metal.

This result may be considered to have jus-tified the practice, adopted at a favorablemoment, of converting foreign exchangeholdings into gold and keeping it earmarkedin the more important foreign centers ratherthan bringing it to this country. An excep-tion to this practice was the repatriation ofthe gold belonging to the Exchange Fund to

NOTE: The report, available in the official English translationpublished by the Bank, contains in addition sections on profitsfor the year, administrative niatters, etc., together with statisticaltables and charts. For earlier reports, see BULLETIN for August1938, September 1937 and July 1936.

Quotations in New York of the Argentine peso based on buyingrates for foreign currencies in the official market in Buenos Airesaveraged $0.31135 in December 1938.1 The latter figure has been arrived at by calculating the rateat 15 pesos to the pound, so as to allow of the resulting total beingadded to the official market figure. Except where otherwise stated,all figures regarding exchange are shown at the above mentionedrate.

the value of 202,000,000 pesos, decided uponby the National Government in 1937. Theadvantages of the first named procedure lienot only in the saving effected through notactually moving the gold, but more particu-larly in the fact that it can be released morepromptly and freely with a minimum of un-desirable psychological reactions.

The experience gained in this matter hastaught a lesson which public opinion will notfail to learn. In spite of the strain imposedon them our monetary reserves are still sub-stantial. Their usefulness lies in their beingemployed at the right moment, provided thatthe causes of the disturbing adverse balanceare also attacked at once.

Even a cursory study of current eventsreveals the unmistakable presence, togetherwith certain new factors, of all the sameelements which give their characteristic im-print to the undulating course of Argentineeconomic life. In actual fact there is anunbroken succession of periods of prosperityand depression which have a fundamentalbearing in determining the monetary as wellas the financial policy of the country.

Although it is impossible to say how or inwhat particular form or at what precisemoment the turn in the tide is likely to occurafter a period of prosperity, the knowledgethat such a moment will inevitably arriveshould be sufficient to advise the timely adop-tion of measures tending to moderate therange of the fluctuation or to palliate itssocial and economic consequences.

Notwithstanding the fact that the charac-teristic elements referred to above determinethe course of the trade cycle now as on previ-ous occasions in both the present and thepast century, profound changes have takenplace in the meantime in the economic struc-ture of the world, while both the domesticand the international policy of the most im-portant nations has also undergone substan-tial modifications. The cycle continues tofollow its course, but under vastly differenteconomic and political conditions which notonly powerfully influence its very intensityand duration but also the nature, range, andseverity of its effects.

Although monetary policy is being com-plicated by all these circumstances it is stillnecessary to base it on cyclical experience.In previous reports we have implicitly recog-nized this fact as, for instance, when we said



in the report for 1936 that " in periods wheneconomic activity is on an upward trend anexaggerated optimism frequently breeds thegerms of future misfortunes." The countrywas at that time definitely in the midst of anupward phase and we thought it timely toissue a reminder that such phases "are gen-erally limited in duration" and added that"therefore, the opportunities which theyoffer for remedying the consequences of pastevils and for accumulating reserves for timesof stress for which it is wise to be prepared,should not be missed."

In the present report we shall again haveto discuss monetary policy in the light ofthese periodically recurring events. It willnot therefore be out of place to outline brieflythe characteristic features of the Argentinetrade cycle and the monetary disturbanceswhich usually take place during its course.Our trade cycle differs from those of the greatindustrial and creditor nations and the les-sons of an experience distinct from our ownwould be of little use in explaining it. Tointerpret it aright we must therefore analyzethe facts peculiar to our own country and tothis purpose the following chapter will bedevoted.

T H E TRADE CYCLE AND MONETARY POLICY

Characteristic features of our trade cycle.—A study of the Argentine trade cycle fromthe academic standpoint does not, of course,come within the scope of this chapter. Wepropose to confine ourselves to a brief out-line of its working, as reflected in the experi-ence of former times and in the course ofevents which have come under our own directobservation, and to a recapitulation of prece-dents which, although already generallyknown, will enable us to see in better per-spective the occurrences dealt with in thisreport and to set forth clearly the aims ofour monetary policy.

Argentina being both an agricultural coun-try and a field for the investment of foreigncapital, the trend of the oscillations of thetrade cycle is determined, on the one handby the variations in the physical volume andprices of the products of the soil and by theextent to which they are absorbed by theworld markets, and on the other, by thegreater or lesser inflow of foreign capital.Apart from the varying fortunes of agricul-tural and pastoral production, which are ofcourse dependent on weather conditions, the

other factors just mentioned are closely linkedto foreign cyclical movements which thusreflect on the Argentine trade cycle.

The intensity and duration of our cyclesdepend not only on the individual strengthof each of those factors, but also on the timeand manner in which they happen to takeeffect, either exerting pressure jointly oroffsetting each other to a greater or lesserextent.

The first outward signs of the upwardphase make their appearance in the balanceof payments. An increase in exports, orlarger investments of foreign capital, or boththese factors at once, produce a favorablebalance which immediately reacts on theinternal monetary position. The mechanismof this reaction is extremely simple. As aconsequence of the favorable balance thesupply of foreign exchange in the marketexceeds the demand. The banks purchasethe excess exchange and credit or deposit thecorresponding amounts in Argentine cur-rency in the sellers' current accounts. Intheir turn, the banks usually transfer theexcess exchange bought from their customersto the Central Bank, which in the same waycredits the banks with the equivalent amountand thus creates fresh banking funds,2 whileholding the exchange as such, or convertedinto gold, until the occasion for using it arises.

A first conclusion may be drawn from theforegoing, namely that a favorable balancein our international accounts is immediatelyreflected in a parallel expansion in the avail-able media of payment, through an increasein current account deposits and a similarexpansion of bank cash reserves depositedin the Central Bank.

The increase in the media of payment isdistributed in the first place among thosesections of the population that benefit directlyfrom increased exports or from foreign capi-tal investments, and the purchasing powerof those sections is consequently enhancedto an equivalent extent. The general demandfor goods and services is thereby increased,and imports, which in this country are ex-tremely sensitive to such an expansion, soonfeel the resulting stimulus.

Media of payment and imports.—In fact,imports tend to follow closely the growth inthe volume of media of payment. At first

3 Under the Caja de Conversion system the working was identi-cal except that the banks instead of selling exchange surrenderedgold, and the Caja instead of crediting them with the equivalentamount paid them in notes. The effects on the monetary systemare exactly the same.



sight this would not seem to be the case, inas-much as only a part of the goods consumedare of foreign origin and home industriessupply an increasing proportion of nationalrequirements. However, a closer study ofthe problem will show our contention to bewell founded. Let us suppose, to take a verysimple example, that of the total goods andservices required by the population only 20per cent are imported; let us suppose furtherthat the increase in the media of paymentamounts to 300,000,000 pesos and that thewhole of this sum is spent by its recipients.Of this increase in demand, on the basis ofthe percentage just stated, imports wouldobtain 60,000,000 pesos while the remaining240,000,000 pesos would be satisfied by do-mestic manufactures and services, whichwould thus benefit to that extent by theexpansion in purchasing power. If we sup-pose further that of those 240,000,000 pesos 20per cent is also expended on foreign articles(and the percentage might be altered withoutaffecting the final result), imports would befurther increased by 48,000,000 pesos and anequivalent volume of media of payment wouldbe thereby eliminated. The residue of 192,-000,000 pesos would go to increase the pur-chasing power of those whom it now reaches.In this way if we continued our analysis wewould find that in passing from hand to handthe volume of purchasing power originallyput into circulation has an ever wideningsphere of action. At each stage a portion ofthe transferred purchasing power is devotedto imports which gradually increase and inthis way approach a total value approxi-mately equivalent to the initial 300,000,000pesos increase in purchasing power.

The example given is, of course, only arough outline wherein it has been taken forgranted that domestic production of goodsand services is capable of being increased toa very considerable extent, as happens whenthere is serious unemployment. If such ex-pansion were not possible and the additionaldemand could not be met by local producers,the enhanced purchasing power would flowmore quickly and easily into the hands of theimport trade after changing hands less often,or, in other words, after giving a lesser im-petus to internal trade.3

We would have omitted this explanationhad it not, apart from elucidating an impor-tant point, furnished us with an opportunityto stress the effects which a credit expansion

has on the balance of payments. It is amatter of cardinal importance for Argentinemonetary policy that these consequencesshould be fully recognized. Furthermore, ifwe think over the example given we will beled to a better appreciation of the diversepositions in which different countries findthemselves in regard to the oft recommendedpolicy of artificially expanding the volumeof media of payment with a view to encourag-ing internal economic activity. In countrieswhere only a negligible part of the goods con-sumed by the population are imported, thedisturbing effects of such a policy on the bal-ance of payments are naturally less seriousthan in a country like ours where importedgoods supply a very important part of therequirements of the population and of in-dustry.

As imports increase, due to the close rela-tionship which exists between them and themedia of payment, the gold and foreign ex-change which had previously entered thecountry as a result of the favorable balanceof payments tend to flow outwards again anda corresponding volume of media of paymentis thereby eliminated. In all this processthere are no monetary disturbances of anykind, although the resulting fluctuations ineconomic activity bring in their train conse-quences of another nature which will be dealtwith below.

Disturbances caused by credit expansion.—The monetary disturbances of a trade cyclereally begin when credit expansion createsfurther media of payment in addition to thosealready resulting from a favorable balanceof payments.

Let us now see how this particular diffi-culty, which has been so frequent an occur-rence in our monetary history, comes about.When, in accordance with the procedure de-scribed above, the commercial banks transferto the bank of issue (whether it be the Cajade Conversion or the Central Bank) the ex-

3 The play of the many variable factors which complicate allreal economic problems alters the numerical ratios in our example.If the increased purchasing power goes into savings rather thaninto expenditure on goods and services, the growth of imports willbe proportionally less. The varying rate at which money circu-lates also affects the working of the process, as also does the in-crease in the public requirements of currency. In this way theapproach of imports to the 300,000,000 pesos mark in the examplequoted would be in inverse ratio to the volume of funds withheldat each stage for such increased currency requirements. On theother hand, if the expansion in the media of payment has itsorigin in the investment of foreign capital, there is a correspond-ing increase in the volume of financial services which have to beremitted abroad, an equivalent volume of purchasing power istherefore eliminated and the growth of imports is diminished ina similar measure. In other similar ways our example could befurther complicated to an infinite degree.



cess gold or foreign exchange which theyhave purchased, they increase their availablefunds to an equivalent extent. Each bank, asis only to be expected, seeks to take advan-tage of this increase in funds to extend itsloan operations, more especially if the ratioof its cash reserves to deposits was previ-ously satisfactory. In this respect, it is awell known and easily explained fact that thebanks, through the medium of credit expan-sion, can create additional deposits in currentaccount two, three, or more times greater—according to circumstances and to the greateror lesser degree of caution exercised by themanagement—than the total fresh fundswhich they receive.

Be that as it may, the media of paymentthus created have exactly the same effectswhen released on the market as those derivedfrom the inflow of gold and foreign exchange.But, whereas the increased imports originat-ing from the latter can be paid for with thatsame gold and exchange, imports promotedby the circulating media created by new bankloans have to be paid for out of the gold re-serves previously lying in the bank of issue.

Here lies the essentially disturbing char-acter of this form of credit expansion. Theinflated imports thus upset the equilibriumof the balance of payments and bring abouta pressure on the exchange market which in-creases proportionally to the degree of creditexpansion which has taken place. The short-age resulting from the excess of demandover supply of exchange must be covered bythe release of gold or foreign exchange fromthe reserves and if the media of payment, not-withstanding these unmistakable symptomsof inflation, continue to grow due to furthercredit expansion, the continued dwindling ofmonetary reserves and the parallel shrinkagein cash reserves at the banks are not long inforcing the country off the gold standard, orto a further currency depreciation if the goldstandard has already been abandoned, as hasmore than once been proved by the graveevents which have occurred in our monetaryhistory. This goes to prove the validity inthis country also of that ancient principlewhich lays down that redundant media ofpayment—those of which we write may wellbe so described—tend to force monetary re-serves out of the country. Depreciation be-comes more aggravated as long as there is agrowth of current account deposits originat-ing in the grant of larger credits, the effects

of which are fundamentally the same as thosefollowing the issue of bank-notes.4

This then is the cause of the monetary dif-ficulties to which our trade cycle is liable andwhich are apt to degenerate into a severecrisis. These difficulties are not inherent tothe course of the cycle, although they veryfrequently accompany it as a consequence ofthe natural and spontaneous reaction of thebanks when confronted with an increase intheir cash reserves.

This is, of course, a very summary descrip-tion in which the process has been simplifiedas much as possible by eliminating the vari-ous peculiarities and complications whichhave characterized its working in our coun-try.

Normal banking credit.—In the foregoingexplanation no account was taken of the typeof loans granted, volume being the sole cri-terion adopted. It is a matter of some im-portance to elucidate this point as creditexpansion need not necessarily involve risk orgive rise to excessive speculation, as has beennot infrequently noted in these inflationarymovements. It is quite possible indeed toimagine eminently sound and desirable trans-actions from the economic point of view whichhave nevertheless contributed to monetarydifficulties, either because the amounts loanedwere very large or because they involved anundue immobilization of banking funds.

It is therefore imperative that our viewson this question should be well defined, inas-much as they constitute the basis of the rec-ommendations issued by the Central Bankto the commercial banks last year, advisingcaution in granting new loans and in fixingtheir date of maturity. In the first place itis essential to distinguish between investmentloans, or other operations involving the im-mobilization of funds, and what might betermed the normal credit requirements ofordinary business. To provide for these lat-ter is the specific function of deposit and dis-count banks. This type of transaction is ofa liquid character, whereas operations of theformer class belong to the investment cate-gory and can only be liquidated slowly, forwhich reason they must be kept within pru-dent limits if monetary soundness is to bepreserved.

4 This is not the only cause of currency depreciation. It canalso originate in a disequilibrium of the balance of paymentsbrought about by a persistent fall in prices which gradually re-duces exports, as well as by the unbalanced position resultingfrom an expansion of the circulating media. The price factorplayed a very important part in the late depression although inits early stages credit inflation was the predominant influence.



Such normal banking credit presupposeseasy liquidation, since its purpose is theprompt sale to the consumer of goods whichare produced, imported, and placed on themarket with the help of that credit. It alsoimplies the creation of fresh purchasingpower by the banks, but only for the rela-tively short space of time which elapses inthe normal course of business between theproduction or importation of the goods andpayment being made for them by the con-sumer. There is thus at all times a consider-able volume of credit which is in process ofrepayment, after which it is re-applied tonew transactions in the ordinary routine ofbusiness.

The process of production, whether on thefarm or in the factory, as well as trade ingeneral, is carried on to a great extent withthe help of banking credit, which thus assistsin providing that part of the population whichdepends directly or indirectly on these activi-ties with the purchasing power which it needsin order to continue its consumption of bothimported articles and domestic goods orservices.

The tempo of these activities, and conse-quently that of the banking loans used forthem, is largely determined by the prospectsof future sales of the goods dealt in by theseproducers or traders, and also on the varyingforeign demand for those goods. Being thusdependent on future sales, purchasing powercreated by normal banking credit is neces-sarily of limited duration except in certainspecial cases which will be dealt with later.

Future sales prospects are the object of in-numerable surmises by producers, traders,manufacturers, and bankers, and are conse-quently affected by the psychological currentsof optimism and pessimism which influencethe trend of business. Argentina being anagricultural country, such surmises refermainly to the prospects for agricultural andpastoral products because of their far-reach-ing effects on the general business situation.In fact, an increase in the value of rural pro-duction, apart from its direct influence onimports, not only creates a proportionatelygreater demand for domestic goods and serv-ices by the rural population, but also increasesthe demand of the producers and sellers ofthose goods and services, and of those who,in their turn, supply these latter with thearticles they consume; and so on indefinitely.Internal business activity is thereby stimu-

lated to a greater extent than it would be bythe requirements of the rural population.Conversely, a decline in the value of agricul-tural and pastoral production becomes ac-centuated in its depressing effects when re-flected on general business activity.

Temporary immobilizations of normalcredit.—If the trend of rural production,trade, and credit, are so powerfully affectedby agricultural and pastoral prospects, it isonly natural that in the measure in which re-sults do not come up to expectations, certaincharacteristic disturbances should frequentlymake their appearance and call into play theelasticity of a good banking and currencysystem.

It happens in such cases that both importsand local industrial production exceed the realconsumptive capacity of the market. Salesare therefore not up to expectations and con-sequently loans cannot be paid off within theprescribed time limit. Credits therefore be-come immobilized not because of their naturebut by force of circumstances and loanedfunds are slow in returning to the banks.In addition, with exports also falling belowexpectations and imports unduly high, goldand foreign exchange have to be released tocover the deficit in the balance of payments.However, this adverse balance is purely tem-porary as imports tend to decline of their ownaccord when the purchasing power originat-ing in rural production diminishes. All theseare normal happenings in an agriculturalcountry and the cash holdings of the banks,as well as the monetary reserves of the Cen-tral Bank, should be sufficient to face suchdifficulties without resorting to stringentcredit restriction, which in these circum-stances would defeat its own ends.5

It is easy to understand that the ability ofthe banks to withstand these unavoidablecredit immobilizations depends on the degreeto which they have previously refrained fromimmobilizing funds in financing or invest-ment operations.

The above is an outline of the nature ofnormal banking credit and of the importantfunction which banks perform through itsmedium. It is for them a duty, requiringboth prudence and ability, to provide busi-ness with media of payment adequate to thedegree of activity prevailing at any givene 5 We refer, of course, to a general restriction and not to such

limitations as it may be desirable to introduce with regard to cer-tain branches of economic activity where a salutary liquidation,destined to correct past errors or excesses, may be deemed neces-sary.



time. Concurrently, it is the duty of theCentral Bank to provide the banks with thesupplementary resources which they mayneed to ensure that genuine business dealingsare not held up for lack of circulating media.This is one of the main purposes of redis-counting which, by the nature of the needit is intended to satisfy, can only be effectedwith readily collectible short-term papercorresponding to real and actual transfersof merchandise or, in other words, with paperoriginating in a producing or a trading opera-tion based on the sale of goods and with theexpectation of their proximate consumption.

Distinction between credit and savings.—As already stated, a marked distinction mustbe drawn between the two forms of creditmentioned above. In normal credit opera-tions immobilization of funds and excessiveimports are merely incidental risks. On theother hand, in financing operations and long-term investments immobilization is the directand inevitable consequence of the opera-tions themselves, and the purchasing powerlaunched on the market thereby contributesat once to the over-expansion of imports,inasmuch as these operations are not con-nected with an immediate sale of goods whichdepends on the prospects of agriculturalproduction and its export. Furthermore,and in contrast to the course of events innormal credits, no corrective reaction follows.On the contrary, as long as the expansion infinancing or investment loans remains un-checked, the growth of imports, and the drainon monetary reserves, will continue.

All this is strictly in accordance with theacknowledged principle of liquidity in bankportfolios, a principle which, like many otherancient monetary truths, has been and stillis entirely borne out by experience. Financ-ing and investment operations are reallycontributions of capital which can only berepaid slowly and therefore can only be un-dertaken with funds accumulated throughsaving which, when all is said and done, isthe only means of building up capital. Theroles of bank credit and saving have, it istrue, been frequently confused and such con-fusion is easily understandable in new coun-tries which lack the great mass of savingswhich their economic development requires.If savings could be replaced by credit thisproblem would be very easily solved.

Whereas the utilization of savings merelysignifies a transfer of purchasing power

from those who accumulate them to the bor-rowers who invest it in their enterprises,bank loans, as already shown, create a freshvolume of purchasing power. If a privateenterprise or a public department makes anissue on the market instead of borrowingfrom the banks and thereafter spends thefunds so obtained, no monetary consequenceswhich may affect imports and the balance ofpayments are entailed. But such conse-quences would assuredly follow if the securi-ties, instead of being acquired by the publicout of their savings, were taken up by thebanks. In this case the banks would becreating fresh purchasing power and trans-ferring it to the issuer of the securities. Inpassing we would mention that this is afactor of considerable practical importance,and was one of the chief reasons for theestablishment of the short-term bill market,as explained in the corresponding chapter ofthis report.

However, it must not be forgotten that inthis country the banks receive a considerableportion of the savings of the population.Consequently they act not only as creatorsof purchasing power but also as intermedi-aries between savings depositors and busi-nessmen wishing to borrow those funds, or inother words as distributing agents for thesavings of the public.

An important conclusion may be drawnfrom the above. If the banks embark onfinancing or investment operations utilizingfor such purposes only a prudent percentageof new savings deposits (inasmuch as previ-ous ones are already invested in one form oranother) they do not bring fresh purchasingpower into being, but only transfer a partof what they have received from the public.In this case, and always provided they makeadequate provision to meet such withdrawalsas past experience tells them to expect, suchfinancing or investment loans involve nomonetary dangers and are exposed only to therisks inseparable from this class of business.

But if this limit is exceeded the monetaryconsequences already described are unavoid-able whatever the nature or purpose of theinvestments, whether they are first classmortgages, advances to finance the develop-ment of promising industries, or credits topromote public or private works of an un-deniably productive character.

In short, it is a dangerous illusion to thinkthat these operations, however praiseworthy



they may be, can be carried on beyond thelimits referred to by resorting to bankingexpedients to cover the lack of local capital.The failure to recognize this elementary prin-ciple leads inevitably to depleting monetaryreserves or to floating foreign loans to coun-terbalance a deficit in the balance of pay-ments.

The trade cycle and monetary disturbances.—A more accurate appraisal of the workingof the cycle is now possible. During the up-ward phase imports, internal industrial ac-tivity, and business in general, increase.Prosperity reigns. This is the outcome of theexpansion in the circulating media caused bythe gold and foreign exchange which enterthe country as a result of increased exportsand investments of foreign capital. Thesubsequent expansion in imports tends todisturb the balance of the international pay-ments and this disturbance becomes accen-tuated at the moment when, inevitably, ex-

THE ARGENTINE TRADE CYCLE AS REFLECTED IN THEPRINCIPAL ECONOMIC INDICES

(Twelve months moving averages)

Logantlmk scale

ports fall and the inflow of foreign capitaleither dwindles or ceases altogether, while for-eign financial services increase. The down-ward phase then begins. The gold and foreignexchange which previously poured in nowflows out again, while the drop in purchasingpower causes a decline in industrial andbusiness activity and a shrinkage in imports.These events tend to restore the balance andif no credit expansion has taken place nomajor monetary difficulties need be feared.Nevertheless the problem of the trade cycleis a serious one, since all the economic activi-ties of the nation—as can be clearly seenfrom the appended chart—are continuallysubject to these successive periods of expan-sion and contraction which can be extremelytroublesome if the change of trend is bothsudden and severe. Government finance alsosuffers from the same causes, increased reve-nues and bond issues encourage larger ex-penditure which cannot be so easily curtailedwhen the tide turns.

If there has been credit expansion thefresh purchasing power which it createsstimulates the upward trend during the boomperiod, and both internal trade and importsadvance more rapidly. If when the down-ward phase commences, and both exports andinvestments of foreign capital6 fall, creditexpansion continues, either because of itsown momentum or of a budget deficit, im-ports and internal business activity tend atfirst to maintain their level and later to de-crease less than they would otherwise havedone. This causes a heavier deficit in thebalance of payments and a correspondingoutflow of gold and foreign exchange. Mone-tary disturbances are therefore more or lessserious according to the degree of inflationwhich has taken place.

6 We have not dealt with investments of floating funds fromabroad as they are a recent development and did not occur informer cycles. In our previous report we discussed the difficultieswhich these funds brought in their train. Considerable invest-ments of this kind were made during the upward phase of thepresent cycle from 1935 onwards and contributed to accentuateit, but when half-way through 1937 there appeared the first signsthat the upward phase was coming to an end a considerablevolume of floating funds took hurried flight, while the previousinflow of long-term foreign capital investments shrunk more andmore. We do not intend to repeat what we wrote in the reportfor that year concerning the monetary disturbances which thesefunds caused but shall confine ourselves to summarizing brieflytheir influence on the course of the cycle. When floating fundsenter the country their effect on the monetary system is the sameas that so frequently observed in the past with regard to invest-ments of long-term foreign capital, namely, increased importsand utilization of the exchange which had previously come intothe country. Later, the floating funds withdraw at the most un-expected moment and entail a further outflow of exchange re-serves. In this way floating funds tend to double the demand forexchange: first to pay for the imports which they originate, and,afterwards, to cover their own withdrawal. Far from having thecounterbalancing effect that might have been imagined, thesemovements of funds tend to aggravate the consequences of thecyclical fluctuations.



It should be noted, however, that creditexpansion is neither necessary nor unavoid-able, although, as has so often happened inArgentina, it sometimes occurs spontane-ously as an outcome of the increase of bankreserves. It can be prevented by the adop-tion of timely and cautious measures by thebanks and of an adequate policy of monetaryabsorption by the Central Bank. This willbe the subject of the following chapter.

The above concludes the review of thetypical features of the Argentine trade cycle.They still exert their influence today as theydid formerly, but under the sway of the greatchanges which have taken place in the eco-nomic and political structure of the worldand which alter the intensity, duration, andcomplexity of the cyclical fluctuations. Thesecircumstances make new demands on mone-tary policy, demands which will be moreeasily met if the factors which affect mone-tary policy are more clearly understood andits purpose more generally recognized. Ifthis and succeeding chapters help to achievethose ends they will have served their mainpurpose.MONETARY ABSORPTION AND THE PROBLEM OF THE

CYCLE

The absorption of banking funds.—In thepreceding chapter we have sought to describecertain phenomena of great significance toour monetary policy without attempting todiscuss the policy itself. This we have donedeliberately so as to avoid confusion betweenour examination of the facts and the meas-ures suggested for dealing with them.

The time for discussing these measureshas now arrived, after having establishedthat the source of monetary disturbances inthe trade cycle lies in a spontaneous move-ment towards credit expansion which appearswhenever funds derived from a favorable in-ternational balance accumulate in the banks.It will be understood therefore that the ab-sorption or sterilization of those funds is oneof the principal aims of monetary policy.

We shall not repeat what we have writtenon this subject in former reports. It willsuffice to recall that the Central Bank judgedit indispensable to carry into effect a policyof absorption in order to preserve the countryfrom the dangers of a plethora of funds. InApril 1937 the total gold and foreign exchangeholdings reached the huge sum of 1,224,000,-000 pesos, by a strange coincidence the verysame amount that the Central Bank received

in gold from the Caja de Conversion on com-mencing operations. The conversion of thoseholdings into banknotes would, therefore,have doubled the total note issue.

To achieve the object outlined above, theCentral Bank first resorted to Certificatesof Participation in Consolidated TreasuryBonds, then to Treasury Bills specially au-thorized by the National Government for thepurpose, and, finally, created Gold and For-eign Exchange Holding Certificates to sup-plement the action of the ParticipationCertificates.

The following table gives an idea of themagnitude of these operations.

ABSORPTION OF BANKING FUNDS BY THE CENTRAL

BANK

End of:

1936JanuaryFebruary __.MarchAprilMayJuneJulyAugustSeptember..OctoberNovember. _December...

1937JanuaryFebruary. —MarchAprilMayJuneJulyAugustSeptember..OctoberNovember. .December. _.

1938JanuaryFebruary...MarchAprilMayJuneJulyAugustSeptember..OctoberNovember..December...

Volume of funds absorbed

Certificatesof Participa-tion in Con-

solidatedTreasury

Bonds (Realvalue)

Treasurybills issuedfor the pur-

chase ofGold andForeign

Exchange 1

Gold andForeign

ExchangeHolding

Certificates

Total

Cashhold-ings

of thebanks2

27? 7242.8223.2186.9323.0342.9347.0311.5330.0323.4347.2397.0

397.0397.0397.0370.9365.4356.2356.2364.4371.1355.5331.0309.1

300.5281.3304.4266.7289.0332.3306.5275.3357.7352.9314.4300.1

(In millions of pesos)

34.467.5

82.293.898.0

100.094.077.088.093.663.663.663.663.6

63.663.663.663.663.663.663.663.663.663.663.663.6

75.0172.5204.0248.4251.8269.1283.3282.6276.1249.3234.6

196.9. 183.3

183.3147.8128.686.672.867.712.5

40.010.0

272.7242.8223.2186.9323.0342.9347.0311.5330.0323.4381.6464.5

479.2565.8667.5674.9707.8685.0713.3741.3717.3695.2643.9607.3

561.0528.2551.3478.1481.2482.5442.9406.6433.8416.5418.0373.7

739.1768.7812.9829.4743.5722.9690.3714.0659.4747.6775.8772.1

793.7796.4772.5829.0772.9840.1829.7761.9737.1780.2721.5689.7

709. 2739.5701.4752.8663.3651.0683.4717.5682.7678.7670.6630.9

1 The funds obtained from these bills were used in due course for therepatriation of dollar indebtedness.

2 Comprises the principal banking institutions which hold approxi-mately 93 per cent of the reserves and deposits corresponding to institu-tions governed by the Banking Law.


DECEMBER FEDERAL RESERVE BULLETIN 1085

In August 1937 banking funds absorbedby these means reached their maximum levelof 741,000,000 pesos, the banks having beenprovided with this incentive to invest theirsurplus funds temporarily in these categoriesof paper. In this way they were not forcedto increase their loans and investments in themarket unduly.

LOANS, MEDIA OF PAYMENT AND BANKING FUNDS ABSORBED.

Millions of pesos

i I i i i i i i i i i i i I t i i i i i iJ. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J A. S. O. N. D.

1936 1937 193S

The effects of the launching on the marketof those surplus funds can be readily imag-ined if it is borne in mind that, despite theconsiderable amounts which the Central Bankwas able to absorb, there was at certain mo-ments considerable competition amongst thebanks in placing funds. Fortunately it wasfound possible to ease the situation later, dueto the banks cooperating in joint measuresdesigned to restore competition to its rightfulsphere, as explained in our previous report.

During the upward phase of the cycle creditexpansion was kept within reasonable limitsin relation to the volume of surplus bankingfunds available, as can be seen from theaccompanying chart.

But later, as the downward phase developedfrom the middle of 1937 onwards, bank loansexpanded continuously. The normal creditrequirements of business had not really in-creased, the expansion being more the out-come of the application of the Agrarian CreditLaw, of the advances made to the Grain Regu-lating Board to finance its purchases, and ofgovernment requirements.7

Promotion of internal business activity.—By virtue of the above fact, the cyclical de-

7 Of the 226,000,000 pesos increase in the net loans and in-vestments of the banks in 1938, 92,000,000 correspond to theAgrarian Credit Law, 45,000,000 to the Grain Regulating Board,27,000,000 to government requirements, and the remainder toother loans and investments.

cline in the volume of media of paymentcaused by the outflow of foreign exchangehas been less considerable than it would other-wise have been. This circumstance has un-doubtedly assisted in keeping internal tradeat a comparatively high level in relation tothe heavy fall in exports. But, as is onlynatural, it has also tended to keep importsat a high level, so much so that, as mentionedin the introduction to this report, this hasbeen one of the main factors in the disequi-librium of the balance of payments.

In view of the trend revealed by imports,the National Government decided to instituteprior exchange permits for the importationof all goods paid for through the free market,which goods in 1938 were valued at 335,000,-000 pesos.8

This measure, efficiently and flexibly ap-plied, will make it possible to regulate thevolume of imports to the country's real ca-pacity to pay, and within limits compatiblewith the prudent use of monetary reserves.

It is reasonable to expect, and indeed it isalready happening, that the purchasing powerwhich, as a consequence of these measures,can no longer encourage a disproportionateexpansion of imports, will be diverted prin-cipally towards industry, except insofar asthis purchasing power is converted into sav-ings and these savings remain unused in thebanks. As a Consequence, industry, whichwould otherwise suffer much more severelyfrom the marked decline in exports, as ex-plained in the previous chapter, will not onlybe able to mitigate these effects to an appre-ciable extent but in some branches may evenbe able to regain the level of prosperoustimes.

The far-reaching importance for the na-tional economy of these events must, ofcourse, be recognized as also the desirabilitythat they should follow their course underthe most favorable conditions, taking timelyprecautions against certain dangers whichare not difficult to discern.

In economics, reactions are not infrequentlyobserved comparable with those of a livingorganism, whose passing phases of depressioncan be alleviated by the use of certain stimu-lants, but only in carefully measured dosesand when strictly necessary, so as to preventa dangerous habit being formed. The effectof credit on economic life is very similar, it

8 Taking the exchange rates at which the operations wereeffected. Calculated at 15 pesos to the pound sterling they cometo 266,000,000 pesos.



must only be resorted to when absolutelynecessary as an undue expansion would in-evitably lead to very serious consequences.The industrial capacity of the country islimited and if purchasing power is createdbeyond a certain point production could notcontinue to develop. A rise in prices of bothlocally manufactured and imported goodswould follow with the consequent adverseeffect on the cost of living.

Once this point at which industry is oper-ating at full capacity has been passed, itwould be unwise to encourage its furthergrowth by means of bank loans. Times arenot propitious for such an expansion, firstlybecause it would cause an increase in creditimmobilizations, and secondly because itwould lead to undesirable over-capitalization,to excessive investments in industrial plantunder the fictitious stimulus of a growth ofpurchasing power which, when it goes backto a normal level, would give rise to seriousover-production.

Finally, circumstances having confrontedus with this emergency, it behooves us tospare no effort to ensure that the beneficialresults of alleviating the industrial depres-sion and preventing the spread of unemploy-ment shall entail the least possible dislocationof the subsequent economic development ofthe country, and more particularly of themonetary system.

Absorption of purchasing power.—Fromeverything that has been said in this and thepreceding chapter it follows that monetarypolicy when faced with a trade depressioncan aim at two different objectives. The firstis to prevent credit expansion from accentu-ating the severity of the cyclical fluctuationsand from causing an adverse balance of pay-ments which increases in proportion to theexcess of imports. The second objective goesfurther, it aims not only at preventing thefluctuations from becoming accentuated butat diminishing their range and the extent towhich the volume of purchasing power variesduring the cycle, in order to moderate theeffects of these variations on the volume ofinternal trade.

Naturally, to achieve this latter object itwould be necessary to withdraw from themarket part of the purchasing power derivedfrom increased exports and from foreigncapital investments, sterilizing it until thedownward phase of the cycle begins and itshould be expedient once again to release it.

This is therefore a real reserve of purchas-ing power which, like all reserves, is built upduring prosperous times for use in adverseconditions. But there is a fundamental dif-ference between a general reserve of thiskind and a reserve which a private individualdeems it wise to make. Anyone who depositshis savings in a bank or invests them in bondsis building up an individual reserve, but isnot contributing to a general reserve for thecommunity, inasmuch as the bank or theissuer of the bonds re-launches that purchas-ing power on the market by lending or spend-ing the funds thus received.

Consequently, the accumulation of a gen-eral reserve for the purpose of influencingcyclical fluctuations requires that the pur-chasing power so accumulated should be neu-tralized or sterilized, until the moment arrivesfor setting it free.

To render the application of such a policypossible in this country, the establishment ofa market for short-term paper is imperative,apart from the possibility of using long-termbonds for this purpose, which will be dealtwith later. Due to the absence of a marketof this kind, the Central Bank has had to con-fine itself to placing its absorption Certificateswith the banks, and not among the public.In this way it has withdrawn a considerableportion of the surplus banking funds withoutaffecting the volume of deposits in currentaccount or that of currency in the hands ofthe public, which between them constitutethe bulk of the purchasing power of the popu-lation. Furthermore, the placing of paperof this kind with the banks has been provedin practice to lack the necessary efficacy, be-cause it is a temporary form of investmentwhich can be quickly liquidated if it is desiredto invest the funds in another way. On thecontrary, the placing of these Certificates onthe market would have the following conse-quences : the public would draw on their cur-rent accounts with the banks to pay the Cen-tral Bank which issues the Certificates, andthe banks would thereupon transfer the cor-responding funds to the Central Bank, whichwould promptly withdraw them from circula-tion, as it does at present with the funds de-rived from subscriptions to Certificates. Inthis way the funds in question would be defi-nitely withdrawn from the banks, and therewould be no possibility of their being utilizedfor credit expansion as long as the CentralBank pursued its absorption policy.



For these reasons the gradual establish-ment of a market for short-term paper is ofgreat importance from the monetary pointof view. It is also important from the finan-cial standpoint as it would allow of the tem-porary financing of government expenditurewhen the unevenness of revenue collectionsis the cause of a shortage of funds, or themoment is not propitious for the issue oflong-term bonds. This explains the effortsmade during the past financial year to developa market of this kind through the placing ofTreasury Bills by public tender, as will beseen in the following chapter.

The absorption policy could also be put intopractice by placing long-term bonds with thepublic and sterilizing the media of paymentreceived against them. The Central Bank, ingradually accumulating bond holdings, whichwhen it completes its fourth year of existencein a few months time will have reached theconsiderable figure of 50,000,000 pesos, hasnot failed to envisage this possibility, as willbe explained in the corresponding chapterof the report. It is conceivable that, in thefuture, the Bank may be able to augment theefficacy of its other means of absorbing fundsby the sale of these bonds, and by keeping theamounts derived therefrom in reserve for thepurpose of reinvesting them and putting thecorresponding media of payment back intocirculation when it deems such a proceedingadvisable.

Reduction of cyclical fluctuations.—Inshort, the absorption of media of payment orpurchasing power during the upward phaseby means of the placing of paper by the Cen-tral Bank, would militate against the expan-sion of imports, industry, and other local ac-tivities, and the gold and foreign exchangewhich would otherwise be devoted to paymentof imports would then accumulate as mone-tary reserves. When recession sets in, thatpurchasing power would be again put intocirculation by the redemption of the paper atmaturity and its withdrawal from the marketby the Central Bank. Internal trade woulddecline less acutely, and so would imports,since the exchange which had been kept inreserve would help to pay for them. There-fore, the absorption of media of payment,and their subsequent return to the market,would reduce the extent of the cyclical fluc-tuations and at the same time preserve thebanks from the dangers of credit expansion.

The full development of the market for

short-term paper—a task which can beneither quickly nor easily accomplished—isall that is required for the efficient applicationof such a policy, as the same means whichthe Central Bank has used for the absorptionof funds could serve this purpose withoutany substantial change in the financial basisof such operations.

The idea of exerting influence on cyclicalfluctuations in this fashion, so far as the finan-cial policy of the Government is concerned,has already been the subject of a very inter-esting study published in the latest AnnualReport of the Ministry of Finance.9 In com-menting on public works expenditure duringthe last decade, it is pointed out that themaximum was reached "at the culminatingmoment of our trade cycle, since the year1937 may be thus considered. On the con-trary, when depression was at its worst be-tween 1931 and 1933 expenditure on publicworks dropped to its lowest levels. The Statewith its programme of public works hastherefore followed the same trend as thecyclical movements of our economy, therebyaccentuating their fluctuations instead ofmoderating them. It would have been wiserto accumulate reserves in periods of pros-perity and spend them during depression. Inthis way the State would have helped to alle-viate the unemployment which occurs intimes of crisis. When the economic situationimproves industry can absorb by itself thegreater part of available labour. If Stateaction were to take this direction the periodiccrises could be surmounted without such seri-ous effects on the economic life of the coun-try".

There is, therefore, a wide field of actionfor monetary policy during the trade cycleand valuable experience is already beinggained therein. We have thought it desirableto examine it and record the foregoing com-ments, in which we have sought to avoid allcomplexities of a technical nature whichmight prevent a clear understanding and dis-cussion of these problems which are of suchfar-reaching national importance. In the ap-plication of this policy the greatest cautionshould be exercised, and it should never beforgotten that its aim is not to oppose thenatural development of economic forces butrather to moderate the cyclical momentumand thus lessen unfavorable social and eco-nomic reactions.

9 Year 1937, Vol. 1, page 41.



BOND AND OTHER SECURITY OPERATIONS

Absorption of government securities in1938.—While 1936 was characterized by awave of optimism, and 1937 by the issue ofthe considerable volume of bonds that satu-rated the market, 1938 was a year of con-solidation on the Stock Exchange. As shownin the following table, the net volume of Gov-ernment securities placed during the yearamounted to only 135,000,000 pesos as against550,000,000 and 350,000,000 respectively inthe two preceding years.

193619371938

YearSecurities

placed

(In500.0700.0250.0

Securitieswithdrawn

millions of pe150.0150.0115.0

Netabsorption

505)

350.0550.0135.0

The serious events of 1937, which werefuHy dealt with in our previous report, madeit imperative to proceed with great cautionin this matter, restricting issues to whatwas absolutely indispensable so as to guardagainst the dangers of another congestionof the market. In this way it was possibleto keep quotations at a fairly steady level,the only two important fluctuations which oc-curred during the year being fortunately ofvery brief duration, as will be explained be-low.

It is easy to imagine the disastrous effects,both on the market and on the interests ofthose who invest their savings in bonds,which would have followed a failure to act

WEIGHTED AVERAGE MONTHLY SPOT QUOTATIONS OFTHE PRINCIPAL NATIONAL BOND ISSUES ON THEBUENOS AIRES STOCK EXCHANGE

Year 1938

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

Average forjyear.

Credito Argentino Interno

%1934 1935 1936

4%1936

ForeignDebtRepa-

triationLoan 4%

(In pesos excluding coupon)100.6599.6699.95100. 33100. 53100. 63100.88100. 5099.37100. 01100.17100. 23

100.17

93.1491.6591.1392.2092.4492.7192.9793.4591.0492.0792.7092.71

92.37

92.3891.2790.5991.7891.9191.9392.4492.4890.4891.3492.1292.14

91.60

92.4391.2290.8591.7691.8092.0792.3392.5190.7391.2692.1392.26

91.85

84.3784.1983.5583.7583.6483.6683.7183.7481.7281.9082.7683.06

83.31

84.4484.0283.4883.6283.5683.7583.7283.5881.9881.9382.8683.01

83.20

1 Including EmprSstito Patriotico 5 per cent, 1st Series.

with the prudence which circumstances de-manded. It was necessary to recommend re-peatedly the postponement or suspension ofvarious proposed issues. To give an idea ofthe magnitude of these projected issues itwill suffice to say that, excluding national se-curities, at the end of 1938 bond issues await-ing authorization to be put on the market in-volved the considerable sum of 500,000,000pesos.

The Securities Commission.—In such cir-cumstances the Securities Commission wasobliged to participate actively in the work ofregulation. As stated in the report for 1937,it was instituted for the purpose of coordinat-ing the various market factors in order toput an end to congestion caused by the exces-sive volume of bonds, and to establish condi-tions conducive to the greater stability of theStock Market. Events have confirmed thenecessity of creating this body.

The Commission has no compulsive powers.Its function is to study all projected issuessubmitted to it, either directly or throughthe Ministry of Finance, and make whateverrecommendations it considers advisable inaccordance with the state of the market. Forthis purpose it must have a,t its command thefullest information regarding the financial po-sition and plans of the issuer. The Commis-sion therefore takes no decisions, it merelyrecommends. In this way it has advised thepostponement or suspension of such pro-jected issues as could not be placed becauseof the limited absorptive capacity of themarket, and it has asked the banks to abstainfrom advancing money on bonds issued inspite of the adverse report of the Commis-sion. Consequently the power of the Com-mission lies essentially in the moral weightwhich its recommendations carry in the mar-ket and with issuers. And that moral weightcan only exist if those recommendations areinspired solely by the public interest and anunwavering sense of fairness.

Program of issues for 1938.—By natureof its duties, the Securities Commission haskept in close touch with the National Ministryof Finance. At the suggestion of the latter,a study was made in May last on the basis ofwhich the absorptive capacity of the marketfor the remainder of the year was estimatedat 150,000,000 pesos. This figure, togetherwith the information furnished by the prov-inces and municipalities, was used as a basisat the meeting called that same month by the



Minister of Finance for the purpose of ex-changing views on the program of futureissues. The meeting was attended by themembers of the Securities Commission andalso by representatives of the Banco de laNacion Argentina, of the Banco de la Provin-cia de Buenos Aires, and of local financialhouses.

On that occasion the suggested figure of150,000,000 pesos was accepted as a conserva-tive estimate for the absorption of govern-ment securities by the Stock Exchange andit was considered advisable to distribute it asfollows: National Government issues, 60,-000,000 pesos; Banco Hipotecario National,50,000,000 pesos, and provincial and munici-pal issues, 40,000,000 pesos. These figureswere fixed subject to further revision if mar-ket conditions made it necessary.

Placing of National Bonds.—The placingof National Bonds on the market, effectedthrough the Bank in its capacity as FinancialAgent of the National Government, was car-ried out gradually up to the figure mentionedabove.

The sales of bonds effected on the marketwere of two categories. On the one hand therewere the ordinary bond issues to finance thepublic works programme, which amounted to52,000,000 pesos. On the other, bonds weresold which had previously been bought by theBank to regulate the market. In respect ofthese latter operations, purchases during theyear amounted to 33,000,000 pesos, whilesales aggregated 47,000,000 pesos, the excessof 14,000,000 pesos being accounted for bybonds purchased in 1937 and carried forwardfrom that year. At the end of 1938 theremaining securities awaiting liquidationas a result of these regulatory operationsamounted to 2,700,000 pesos. The excesssales added to the ordinary bond issues re-ferred to above give a total of 66,000,000pesos, which represents the total volume ofNational Bonds placed on the market duringthe year.

The regulatory operations just mentionedwere effected principally on two occasions,first in February, when the depreciation ofthe peso in the free market was accompaniedby sales of securities chiefly by foreignholders, and secondly, on the occasion of theinternational crisis in September, when theCentral Bank had to intervene very activelyon the Stock Exchange in order to prevent themomentary confusion from depressing quota-

tions to unjustifiably low levels. These pur-chases had the desired effect of allowing theStock Exchange speedily to regain its formerconfidence.

In addition to sales on the Stock Exchange,the Central Bank, as in former years, placedbonds for account of the Government to thevalue of 32,000,000 pesos, outside the StockExchange with the Pension Boards and va-rious other Government departments.

Placing of other government securities.—Mortgage Bonds placed during the yearamounted to 54,000,000 pesos but as the re-demptions simultaneously effected reached53,700,000 pesos, the net volume of thesebonds placed on the market was insignificant.This allowed an increase in the sum originallyallotted to the provinces and municipalitiesfrom 40,000,000 to 46,000,000 pesos and alsoa slight increase in market sales of nationalbonds.

In the total placings for the year theremust also be included approximately 40,000,-000 pesos, which is the estimated volume ofProvince of Buenos Aires bonds sold.10

Operations in National Treasury Bills.—In this sphere efforts have been made during1938 to establish and develop a short-termTreasury Bill market. The chief obstacle layin the nature of these Bills which, being madeout to order, could only be transferred by en-dorsement, which proved in practice to be aserious drawback to their free circulation.In addition, these transactions were subjectto income tax and stamp duties which alsohampered the ready negotiation of the Bills.Both these hindrances were removed by theNational Government with a view to thespeedy realization of the object referred to.Bearer bills were instituted by Decree onFebruary 4,1938, and they were subsequentlyexempted from the above mentioned taxes.The Central Bank was thus able to announcethe new regulations which became effectivefor these bills as from tenders accepted onApril 9.

The results achieved have been very satis-factory taking into account the situation dur-ing the year and the fact that a pew develop-ment of this kind must necessarily take placegradually. The fundamental object pursuedin encouraging the establishment of a short-term bill market was to induce the financialhouses and the investing public in general to

10 Apart from this, Province of Buenos Aires Mortgage Bondsand company issues were also offered on the market to the valueof 20,000,000 pesos.



place their funds temporarily in a class ofsecurity carrying the most absolute guaran-tee. The country lacked this field of invest-ment embodying the characteristics of earlymaturity and immediate realization, in whichinvestors would be assured that the securitythey had purchased could be realized at anymoment. For this it was necessary that themarket should be as extensive as possible,both in regard to the number and the financialcapacity of the investors, so that both buyersand sellers could always find the means ofsatisfying their requirements. All this hasbeen achieved by the cooperation of the brok-ing firms which have taken an active sharenot only in tendering but also in negotiatingbills in the open market. The result of thetenders throughout the year can be followedin the table given below:

PLACING OF TREASURY BILLS FOR ACCOUNT OF THENATIONAL GOVERNMENT IN 1938

Date ofissue

Jan. 10Feb. 10Mar. 10Apr. 9May 10

" 24June 10

" 25July 8

" 26Aug. 10

" 25Sept. 10

" 24Oct. 10

" 25Nov. 10

" 25Dec. 10

« 24

Treasury Bills

Of-fered

Sub-scribed

Al-lotted

(In thousands of pesos)

20,00025,00020,00020,00015,00025,00010,00020,00018,00015,00020,00025,00015,00025,00025,00025,00017,50022,50020,00025,000

6,9007,0509,9004,6003,35033,70016,55025,37514,92519,75022,40029,40024,32525,30027,42527,05018,30019,35022,50022,055

6,9003,0503,9004,6002,35025,67513, 22513, 8257,10017,80018,60027, 30023, 27523,30025, 72525, 20016,80015,85019,75016, 555

Average rate of interest onamount allotted maturing

at approximately:

30days days

90days

180days

360days

(Per cent)

2.062.02

2.132.132.132.102.102.122.152.112.152.132.122.062.082.082.102.13

2.332.332.33

'2.162.282.312.352.352.352.322.312.352.352.35

2.252.252.252.392.252.372.332.382.502.422.402.492.492.502.502.502.502.502.502.50

2.502.752.752.752.752.752.752.752.752.752.752.752.75

2." 75

"2~75

2.88

3.003.003.00

3.003.003.002.933.00

Bills incircula-tion i

(Thou-sands

ofpesos)145,100123,800117,050109,100123,950132, 325141,050135,025132,125138, 200142, 200143,800150, 925136, 250142,125143, 925149,025145, 725148, 950144,755

1 Including Treasury bills placed without tender and Treasury bills ofYacimientos Petroliferos Fiscales.

No change has occurred during the year inthe volume of bills in circulation but theirdistribution has been modified. In effect, ofthe 150,000,000 pesos of bills in circulationat the end of 1937, 91,000,000 had been placedwith the banks and 59,000,000 with otherfinancial institutions and members of thepublic. Whereas, out of the 145,000,000pesos in circulation at the close of 1938, theamount held by the banks had declined to60,000,000 pesos, that held by other in-stitutions and by the public had risen to

85,000,000 pesos. Herein lies one of the mostsignificant results achieved so far by thecreation of a short-term bill market.

Although it is true that from the point ofview of the National Treasury there is nodifference between funds received from thebanks and those subscribed by the public,from the monetary standpoint the two situa-tions are entirely different, as shown in thesecond chapter of this report. Subscriptionsby the banks involve the creation of freshmedia of payment, whereas public subscrip-tions merely entail a transfer to the NationalTreasury of media of payment already exist-ent. It is unnecessary to repeat the remarksmade in the above mentioned chapter regard-ing the effects of each of these methods offinancing expenditure. It is therefore easyto understand the Central Bank's concern infurthering the development of this tendency,without in any way prejudicing the interestof the banks which have always been able tofind a suitable field for the investment oftheir surplus cash reserves, either in Certifi-cates of Participation in Consolidated Bondsor in Gold and Foreign Exchange HoldingCertificates. Further, the development of ashort-term market will open up for the banksa profitable outlet for their temporary cashbalances which it will be possible to investin readily realizable short-term bills, as hap-pens" in important financial centers wheretreasury bills are regarded as the most typicalshort-term market security.

The 85,000,000 pesos of bills taken up byother institutions and by the public in 1938,include 12,000,000 pesos subscribed by for-eign holders through exchange swap opera-tions. A very restrictive policy has beenfollowed in this respect as it has not beenconsidered advisable to be burdened with alarge volume of short-term commitmentsabroad. For this reason tenders for short-term bills have been refused and practicallyall the foreign bids accepted have been formaturities at 9 months or a year. A judi-cious contact has thus been established withforeign investors but within extremely pru-dent limits.

The total of 145,000,000 pesos of bills out-standing on December 31st last, also included11,000,000 of the Yacimientos PetroliferosFiscales and 64,000,000 used for the repatria-tion of foreign indebtedness. The balance,70,000,000 pesos, corresponds therefore tobills for Treasury financing.



Participation in consolidated treasury bondand gold and foreign exchange holding cer-tificates.—During the year 1938 the bankshave had to resort to the realization of a partof their holdings of Participation in the Con-solidated Bonds and Gold and Foreign Ex-

PLACING OF CERTIFICATES OF

Date ofissue ofCertifi-

cates

Jan. 17Feb. 2

" 17Mar. 2

« 1 7

Apr. 2" 13

May 2a 1 7

June 2" 10" 17" 24

July 2" 16

Aug. 2" 16" 18

Sept 2" 3" 17" 23" 24

Oct. 1u 1 7

Nov. 2a 1 7

Dec. 2« 1 7

CONSOLIDATED

Nominal value

Of-fered

70,00049, 70050,00027,750

120,00012,75070,00050,00050,00040,000

60,000

50,00040,00020,00090,000

60,000

60,000

40,00025,00010,000

40,00010,00050,000

Sub-scribed

Al-lot ted i

BONDSPARTICIPATION

IN 1938

Certificates incirculation

Nomi-nal

value

(In thousands of pesos)

77,00042,90053, 65039,450

110,0008,350

48,25039,00053,00024,300

34,000

29,45028,05010,70057,000

37, 700

48,000

23,00020,00010,90024, 50013,80033,500

70,00039,80040,65027,750

115,0008,350

36, 50013,00090,00030,60021,00060, 75021,00043,80028,05010, 70057,0004,000

37, 70036, 35090, 30024,2106,990

70, 70025,00010,00044,500

8,80033, 500

301,850291,950282,600282,800305,950301, 550268,050241, 250290,600293,450312, 450313, 200334,200316, 650308,200305,900272,900276,900263,000299,350328, 900353,110360,100366,000365, 950354,750346, 750316, 850302, 350

Marketvalue

300,502290,640281,336281, 525304,435300,048266,673239, 995289,043291, 858310, 761311,471332, 343314,902306,479304,182271, 325275, 302261, 455297,481326, 683350, 730357, 674363, 391363, 330352,197344,212314,493300,082

IN

Rate of interest onamount allotted 2

Mini-mum

1.6741.7391.7391.7221.9572.0181.9921.9962.0352.1132.1862.0352.2182.1762.1682.1912.2452.2842.2552.3562.3742.3882.3762.3612.3092.3092.3482.3602.360

Maxi-mum

(%)

2.0092.0232.0231.9961.9962.0182.1452.1132.1522.1912.1862.2302.2182.2952.2842.3092.3232.2842.3742.3562.3742.3882.3762.3612.3872.3872.3772.3802.380

Aver-age

1.9061.9311.7891.9131.9922.0182.0362.0422.0922.1832.1862.2262.2182.2872.2472.2822.2902.2842.3602.3562.3742.3882.3762.3612.3732.3662.3752.3712.377

1 Including Certificates allotted without tender.2 For a term of 90 days approximately.

change Holding Certificates, to replenish theircash reserves in view of the drain caused bythe deficit in the balance of payments and theincrease in advances. In this way a substan-tial decline in cash reserves has been avoided,but, on the other hand, placings of these Cer-tificates have undergone an appreciable re-duction. Whereas in December 1937 the totalvalue of Certificates of both classes placed bythe Central Bank with the other Banksamounted to 545,000,000 pesos, at the samedate in 1938 it had fallen to 312,000,000 pesos.The usual table illustrative of the course ofoperations in Certificates of Participation inConsolidated Treasury Bonds is given above.

In the corresponding column the upwardtendency of the interest rate, in harmony withthe changed conditions of the market will benoted.

OTHER ACTIVITIES OF THE BANK

Exchange operations.—The rise of sterlingand the price level. The deficit in the balanceof payments in both the official and the freeexchange markets forced the Central Bankto become an active seller of exchange inorder to meet the demand which exceededsupply. During the latter part of Januaryand the beginning of February this situationcaused the first depreciation of the peso inthe free market, when the sterling rate rosefrom 16.99 pesos on January 28 to 19.05 pesoson February 4. The continuance of this stateof affairs brought about a further deprecia-tion in November, when the pound rose from18.96 to 20.62. This decline coincided withthe National Government's decision to modifythe official market selling rate raising it from16 to 17 pesos, in view of the exchange situa-tion and of the measures adopted in regardto grain prices.

Last year we explained at length how thedeficit in the balance of payments began, andin this report reference has been made inother chapters to the various factors whichaccount for its continuance during the year.It only remains now to deplore that such ad-verse circumstances have rendered it impos-sible to maintain a greater degree of stabilityin free market rates. It must be pointed out,however, that notwithstanding its regrettablerepercussions abroad, the depreciation of thepeso in the free market, as anticipated in our1937 report, has had no great effect on theinternal price level because of the type ofthe imported goods paid for through thatmarket, and because they constitute less than20 per cent of the total imports.

VALUE OF GOLD AND GENERAL PRICE LEVEL D¥ ARGENTINA

(Indices, basis 1926 = 100)

Logarithmic scale

I

- 300

VALUE OF GOLD CURRENCIES

GENERAL WHOLESALE PRICE LEVEL

I 1 , 1 1 1 I 1 1 1 11926 27 28 29 30 31 32 33 34 35 36 37 1938

Note: The value of gold currencies and that of the pound sterling from November 1933 onwardshas been calculated at the official market selling rate.



On the contrary, the appreciation of thepound sterling in the official market is aptto produce a rise in the internal price level.Nevertheless, this has not occurred during1938 due to the fact that the fall in interna-tional prices has been greater than the rise inthe pound. In effect, in December 1937 thegeneral wholesale price index for Argentinastood at 111.7 (basis: 1926 = 100), whereasin December 1938 it had fallen to 103.0.Wholesale prices have therefore almost re-turned to their pre-crisis level, a very signifi-cant fact as it proves that despite the con-siderable currency depreciation which hastaken place during the last decade, pricesstand today almost at the same level as at thebeginning of the period. This is easily ex-plained by the great fall in internationalprices, which in this country has been offsetby the simultaneous rise in the value of gold interms of Argentine currency, as can be clearlyseen in the accompanying chart (p. 1091).

Nevertheless it is obvious that, given anunvarying level of international prices, anydepreciation in the value of the currency mustnecessarily affect the internal price level, ashas been repeatedly proved by past ex-perience.

Gold exports. Due to the situation referredto above, it was found necessary from Julyonwards to export an appreciable part of thegold imported in 1937 by order of the Na-tional Government. Of this gold, which wasvalued in the Exchange Fund at 202,000,000pesos, at the rate of 140.4 shillings per ounceand 15 pesos to the £, only 91,000,000 pesosremained. The cost of shipping the goldworked out at 0.337 per cent of its value,including freight, insurance, and other ex-penses. At the same time the Central Bank,for the reasons mentioned above, was obligedto dispose of a considerable part of the goldwhich it held abroad also for account of theExchange Fund. The net amount of gold thussold reached a total equivalent to £16,231,929.11s. 5d., or 243,000,000 pesos at the rate givenabove. These operations were effected chieflyin the London Market. In addition, when theNational Government floated the $25,000,000loan in New York, gold to the value of ap-proximately $6,000,000, or 19,000,000 pesosat the same exchange rate, was deposited inthat market.

Foreign Loans. The Bank took part in theexchange operations originated by the NewYork loan, as well as in those corresponding

to the bills discounted in Zurich and Amster-dam in May for a nominal value of 40,000,000Swiss francs and 12,500,000 florins (guil-ders) respectively. The result of these oper-ations is given below:

Net proceeds of theloan in

foreign currency

Swiss francs 39,080,000Florins 12, 315, 752Dollars 23,143,750

Rate ofconversion

into £

21.728.984.76

Yieldin £

1, 799,1721, 371,0804,862, 847

Averageselling ratein the free

market

18.9418.9718.97

Yield in

34,078,88226,009,90592, 229, 360

Bank inspections.—Inspections. The BankInspection Department has continued to per-form its duties according to plan. In theexecution of a program approved in 1938nearly all the important banks and not a fewof the smaller ones have already been in-spected. To date 82 inspections have beencarried out comprising banks which hold 92per cent of the total deposits.

In performing this task the Central Bankhas acted in the same spirit that has beenexplained in previous reports, endeavoringto cooperate with the banks in finding a solu-tion to any difficulties with which they maybe confronted. In the case of some institu-tions whose balance sheets showed losses ora considerable volume of frozen assets, it hasbeen necessary to consider methods of mobi-lizing those funds and improving the state ofthe balance sheet, either by making use ofpart of the reserves or of the paid up capital,or by obtaining assistance from the InstitutoMovilizador de Inversiones Bancarias. Thesemeasures have met with every success andhave not given rise to any uneasiness in themarket.

In addition, some special inspections havebeen made in regard to exchange operations.The results have, generally speaking, beenvery satisfactory, but it has been noticed thatthe book-keeping systems used for these oper-ations sometimes lack clarity. This led to astudy of the possibility of working out a sim-ple uniform book-keeping system which couldbe used by banking institutions who mightwish to simplify their work and facilitate thedeclarations which they have to make to theCentral Bank according to the regulationsissued by the Exchange Control Office.

Minimum cash holdings. Compliance withthe regulations regarding minimum cashholdings has continued to be satisfactory.



The holdings of the banks as a whole remainappreciably above the minimum required bylaw, although excess holdings, due to reasonsmentioned elsewhere, have declined duringthe year. Deficits have also been compara-tively small as is shown in the table whichfollows.

These deficits, as in the previous year, haveoccurred in institutions of minor importancewhich in most cases are undergoing reorgani-zation. Exercising the powers vested in itunder the Banking Law, the Central Bankhas refused to authorize the payment of divi-dends by establishments which have not kepttheir holdings regularly up to the legal mini-mum. The same step was taken in the caseof institutions in which inspection had dis-closed the existence of losses which it wasdesirable to write off by applying profits tothat purpose.

LIABILITIES, CASH HOLDINGS AND SURPLUS OVERLEGAL MINIMUM DURING 1938

[Monthly average of daily balances, in thousands of pesos]

Months

JanFeb....March.April. _May.._June.-July.. .Aug....Sept...OctNov. _.Dec-. .

Ave—

Liabilities

Sight Term

280,863 752, 733286,301,

2, 436, 977 4,;, 735 4, 286,109 781,625

i; 448, 510 4,!, 449, 520 4!

1, 843, 886 2,1, 832, 374 2,453,1,853,087 2, "-1, 819, 648 2,1, 778, 740 2, U5,483 A, 224', 223 767!1,758,291 2,1, 724,046 2,1, 701,487 2,1, 728, 572 2,423^1,719,484 2, " ' -1, 715, 912 2,1, 729, 270 2,

2, 442, 537 i""!,442, 935 4!, 439,173 4!!, 423, 729 4

2, 412, 745 4!"!, 399, 616 4'!, 384,110 4!

1, 767,066 2,431, 589 4,198, 655

Total

,224,,200,, 166,981 704,646

140, 660 742,'152, 301 '

, 113, 380

Cash holdings

Amount

168 771,832\ 493

828 702, 331

5,710748, 823

132, 229 719, 258115, 528 713, 670

711,663

'40, 402

Percent

17.618.317.918.118.216.716.917.918.017.417.217.3

17.6

Difference with re-spect to legal

minimum

Sur-plus

263, 317292, 740276,488285, 772288, 641226, 705234,346277,009 1279, 963252, 875248, 874245, 689

264,373

Defi-cit

Netsurplus

603 262, 768578 292,162800 275, 688021 284, 751, 366 287, 275082 225, 623976 233, 370655 275, 354588 278, 375729 251, 146706 247,168426 244, 263

1,211 263,162

Statistical summary. The regular publica-tion of the Statistical summary of the stateof the banks called for by the Banking Lawwas commenced in February last in accord-ance with forms drawn up by the CentralBank.

Cooperative societies. A careful study ofthe working of cooperative societies led to theconclusion that, generally speaking, the fundswhich they receive cannot be considered asbank deposits. Once the Central Bank hadstudied this matter, the Executive Power is-sued Decree No. 15,130 on October 21 last,which divides cooperatives into two classes,

banking and non-banking, according to thenature of their assets and liabilities and tothe ratio of their capital to the funds receivedfrom members. The former are required tocomply with the Banking Law, while non-banking cooperatives must take all measuresnecessary to prevent the public from confus-ing them with institutions subject to the regu-lations and control of the Banking Law. Toensure that such measures are taken, the Cen-tral Bank is empowered to ask them for in-formation and to inspect them. This Decreehas as its main purpose to ensure the untram-melled development of cooperatives which,although receiving funds from their memberseven if only in limited amounts, devote them-selves primarily to activities which are notof a banking character.

Subsidiary currency.—To date no changehas been made in the subsidiary currencyissue which remains at the same total of 212,-000,000 pesos at which it stood on May 31,1935, when the Central Bank was established.At that time the Central Bank held 11,000,000pesos in its own vaults, the remaining 201,-000,000 being in the hands of the banks andthe pubjic. Since then the requirements ofcirculation have constantly increased, and theCentral Bank's holdings of subsidiary cur-rency have diminished to such an extent thaton December 31 last they amounted to only2,200,000 pesos. This circumstance has madeit imperative to restrict the exchange of sub-sidiary currency for Central Bank notes andto confine these activities to the renewal andexchange of subsidiary currency of the va-rious denominations.

The Law allows for an increase in the issueof this class of currency by the National Gov-ernment at the request of the Central Bank,always provided that the total does not exceed20 pesos per inhabitant. The Bank has notconsidered it desirable to make such a requestwithout first ascertaining whether the greaterdemand for this currency, especially in 1938,is due to temporary factors or to a naturalgrowth in circulation requirements. The ex-perience of the present moment may wellshow definitely which of these two alternativecauses is responsible.

The want of one and two centavo coins hasagain been felt during 1938. The continualapplications made by Government depart-ments, as well as the frequent requests fromindustrial and commercial concerns which re-



quire such coins for their payments, cannotbe satisfactorily met because of the very smallnumber of these coins in existence.

Temporary advances to National Govern-ment.—By Art. 44 of Law 12,155 the Bankis authorized to make advances to the Na-tional Government for the purpose of cover-ing temporary insufficiency in revenue collec-tions, up to a limit of 10 per cent of the aver-age cash revenue collected by the Governmentin the three preceding years.

The average for the years 1935-37 was904,000,000 pesos, the maximum advance al-lowable this year therefore amounting to90,000,000 pesos.

During 1938 the Bank granted the ad-vances requested by the Government, whichfluctuated between 10,000,000 and 70,000,000pesos. The largest sum outstanding at anyone moment was 68,000,000 pesos.

These advances were used by the NationalGovernment chiefly at the beginning and endof each month. They decreased appreciablyin the middle of each month and remainedcompletely unused for periods of from 8 to22 days in January, February, May, July,August, and November. In June no advancesat all were requested.

On December 31 the balance outstandingof this account was 50,000,000 pesos.

BALANCE SHEET OF THE CENTRAL BANK OF THE ARGENTINE REPUBLICAS OF DECEMBER 31, 1938 AND 1937

[In thousands of pesos]

Assets

Gold at homeGold at home, extension of Exchange Fund-Gold abroad and foreign exchangeForeign exchange bought forwardSubsidiary currencyShareholding banks, shares subscription

accountsNon-interest bearing Government bonds.__Consolidated Treasury bondsNational securities, Article 34, Law 12, 155..Bank premisesTemporary advances to National Govern-

ment, Art. 44, Law 12, 155Other assets

Total assets..

Dec. 31,1938

1, 224, 418

71, 351

18, 3842,198

118,884396, 909

28, 9390)50, 2555,603

1, 916, 941

Dec. 31,1937

1, 224, 418129,10968,196

2,477

15118, 884397, 970

23, 701970

17,0922,510

1, 985,340

Liabilities

Notes in circulationB ank depositsNational Government depositsOther depositsForeign exchange sold forwardCapitalGeneral reserve fundSpecial reserve for contingenciesContingency and enlargement of premises

reserveCertificates of participation in Consolidated

Treasury bondsBank premises amortization accountProfit and loss accountOther liabilities

Total liabilities.

Dec. 31,1938

1,117,957320, 584109, 706

91418, 38420,0004,558

1,500

2,500

302, 3505,184

13, 304

1,916,941

Dec. 31,1937

1,149,751355, 394125,019

4,927

20,0002,5861,500

600

310, 500970

7,3866,707

1, 985,340

1 Entered at the nominal figure of 1 peso.


FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICSUNITED STATES

1095



MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS[In millions of dollars]

Date

End of month figures:1938—Oct. 31

Nov. 30Dec. 31

1939—Jan. 31Feb. 28Mar. 31__._Apr. 30May 31June 30July 31Aug. 3 1 . . . .Sept. 30Oct. 31

Wednesday figures:1938—Dec. 7

Dec. 14Dec. 21Dec. 28

1939—Jan. 4Jan. 11Jan.18Jan. 25

Feb. 1Feb. 8Feb. 1 5 . . -Feb. 21

Mar. 1Mar. 8Mar. 15Mar. 22 ___Mar. 2 9 —

Apr. 5Apr. 12Apr. 19Apr. 26..__

May 3May 10May 17May 24May 31

June 7June 14June 21June 28

July 5July 12July 19July 26

Aug. 2Aug. 9Aug. 16Aug. 2 3 . . . .Aug. 30

Sept. 6Sept. 13Sept. 2 0 —Sept. 27

Oct. 4Oct. 11_____Oct. 18Oct. 25Nov. 1 .Nov. 8Nov. 15. . .

Reserve bank credit

Billsdis-

counted

7745443455566

6787

4545

5754

43333

3333

34444

3355

5555

55556

6766

7766666

Billsbought

1

1111

1111

11111

1111

11111

1111

1111

11111

1111

111

U. S.Gov-ern-

mentsecuri-

ties

2,5642,5642,5642,5642,5642,5642,5712,5642,5512,4882,4262,8042,736

2,5642,5642,5642,564

2,5642,5642,5642,564

2,5642,5642,5642,564

2,5642,5642,5642,5642,564

2,5642,5642,5642,564

2,5642,5642,5642,5642,564

2,5642,5642,5642,551

2,5512,5352,5152,488

2,4532,4432, 4232,4232,426

2,5942,8242,8262,804

2,7852,7652,7482,7362,7212,6872,649

outstanding

OtherReserve

bankcredit i

14133328301820

423

- 8146859

20298439

35231814

13121723

19- 327

510

17172312

47884

8371510

13281719

1814251315

42425036

45386330382860

Total

2,5862,5842,6012,6072,5982,5872,5952,5732,5792,4862,4462,8792,801

2,5912,6002,6562,610

2,6042,5922,5882,583

2,5822,5842,5872,592

2,5862,5652,5952,5732,578

2,5842,5842,5912,580

2,5722,5752,5762,5762,573

2,5762,6052,5842,567

2,5692,5692,5372,512

2,4762,4622,4532,4412,448

2,6432,8732,8832,846

2,8372,8102,8172,7712,7652,7212,715

Goldstock

14,06514, 31214, 51214, 68214,87415, 25815, 79115,95716,11016, 23816, 64616,93217,091

14, 36714,38014,45414, 508

14, 56514, 57714, 61514, 640

14, 69414, 73214, 77214, 818

14,88814, 92314, 98315,07515,160

15, 29215, 43015, 60515, 714

15, 80115,85615,89215, 92715, 957

15, 98716,02716,06016, 093

16,13616,17416,19116, 227

16, 24816, 27016, 33516, 50116, 638

16, 72616,80816, 90216, 925

16, 95816,97316, 99717,03917,09917,13217, 235

Treas-urycur-

rencyout-

stand-ing

2,7512,7732,7982,8162,8242,8392,8492,8622,8812,8952,9072,9192,932

2 7752,7842,7882,790

2,8002,8052,8102,812

2,8172,8182,8192,821

2,8272,8292,8322,8342,837

2,8382,8422,8442,849

2,8512,8542,8572,8592,862

2,8642,8682,8732,879

2,8802,8852,8902,893

2,8952,8972,9002,9032,905

2,9082,9112,9152,914

2,9202,9242,9272,9292,9322,9352,939

Moneyin cir-cula-tion

6,7006,7876,8566,6536,7316,8176,9056,9677,0477,0497,1717,2937,342

6,8446,8586,9436,912

6,8396,7165,6666,623

6,6636,6736,6956,708

6,7396,7516,7516,7586,765

6,8556,8356,8586,860

6,9156,9046,9136,8936,967

6,9866,9366,9346,962

7,1007,0417,0227,002

7,0547,0707,0917,0987,141

7,2617,2357,2367,238

7,3097,3467,3307,3027,3527,4097,384

Treas-urycashhold-ings

2,7702,6892,7062,7762,7402,6912,6992,6362,5632,3602,3252,2442,254

2,6812,6512,6772,707

2,7252,7122,7262,754

2,7702,7682,7712,752

2,7162,7162,7122,7432,722

2,7122,7072,7232,693

2,6912,6782,6832,6462,636

2,5712,5702,5662,559

2,5772,5522,5302,506

2,3702,3542,3662,3342,327

2,2642,2272,2722,260

2,2502,2382,2162,2302,2502,2632,341

Treasurydeposits

withFederalReservebanks

535484923747

1,1481,229

931920944752708545286

407413

1,025941

891873800767

887931

1,2501,181

1,1681,1021,0591,2221,201

1,1031,015

951913

936959927915920

935928941962

820791764742

863844776724709

676615619552

469404349326349348564

Non-mem-ber de-posits

424574441458488533545586739693622753728

576551514505

436459435470

469488500495

484510552511505

470515509516

554521543558586

630714714677

678638634690

662597565604608

688755781771

776742698692790779772

OtherFed-eral

Reserveac-

counts

260259260255254257255253258257255240241

258258267265

258258256256

256255254254

253253259258257

257256256256

255255255254253

253253263263

257257257257

257256256256255

247234242242

239238241240241241241

Member bankreserve balances

Total

8,7138,8768,7249,2158,9369,1579,900

10,02910,01810, 50710, 91811,65511,973

8,9669,0348,4728,577

8,8198,9569,1309,166

9,0479,0188,7078,841

8,9428,9859,0778,9899,125

9,3189,5289,7439,903

9,8729,967

10,00510,09710,029

10,05310,10110,09910,116

10,15110, 35010, 41210,436

10,41310, 50910,63310,82910,951

11,14111, 52611, 54911, 621

11,67211, 73911,90711,95011,81411, 74911, 587

Excess(esti-

mated)

3,2273,3833,2053,6443,3873,5594,0984,2184,1404,5534,7585,3525,553

3,4423,4762,9793,072

3,2983,4363,5593,597

3,4783, 4593,1663,298

3, 3823,4073,4433,3643,519

3,7083,8793,9984,124

4,0844,1864,2444,3044,218

4,2794,2644,2274,243

4,2924,4474,4854,485

4,4624,5334,5904,7414,799

4,9695,2715,2755,332

5,3595,3995,5095, 5345,3765, 3545,166

* Includes industrial advances.NOTE.—For description of figures in this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article

together with all available back figures, may be obtained upon request from Division of Research and Statistics. Back figures are also shown inAnnual Report for 1937 (tables 3 and 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500. Averages of daily figures for recent monthsand years are shown in the table on p. 1053.



PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS[In thousands of dollars]

Wednesday figures

1939

Nov. 15 Nov. 8 Nov. 1 Oct. 25 Oct. 18 Oct. 11 Oct. 4

End of month

1939

Oct. Sept.

1938

Oct.

ASSETS

Gold certificates on hand and due fromU. S. Treasury

Redemption fund—F. R. notesOther cash

14,866, 65410, 253

353, 716

14,858,2109,139

323, 888

14,839, 206 14, 804, 2108,926

344, 281

14, 769, 206 14, 725, 715 14,9,777

332, 3838,987

315,194

696, 2179,005

325,153

14, 829, 206 14,8,846

339, 670

671, 7207,344

334, 273

11, 262, 7008,813

367,842

Total reserves. 15,230,623 15,191,237 15,187,920 15,157,417 15,111,366 15,049, 896 15,030, 375 15,177, 722 15,013,337 11,639,355

Bills discounted:For member banksFor nonmember banks, e t c .

3,1763,309

3,1663,309

2,9393,309

2,4423,309

2,3143,309

3,2053,309

3,4403,

2,8483,309

2,9253,309

7,401

Total bills discounted. 6,485 6,475 6,248 5,751 5,623 6, 514 6,749 6,157 6,234 7,401

Bills bought:Payable in foreign currencies.

Industrial advancesU. S. Government securities, direct

and guaranteed:BondsNotes .Bills

11,561

1,305,4421,239,172

104,705

11, 623

1, 313, 9421, 247,497

125, 380

11,6

1, 315, 9421, 245, 497

159, 380

11,763

1, 315, 9421, 245, 497

174, 320

415

11, 787

1, 315, 9421, 245, 497

186, 820

498 548 548 541

11,803

1,315,9421, 245, 497

203, 457

11,841

1, 315,9421, 245, 497

223,457

11, 744

1, 315, 9421, 245, 497

174, 320

11, 972

1, 315,9421, 245,497

242, 370

15, 264

787,3271,164, 565

612,123

Total U. S. Government securi-ties, direct and guaranteed

Other Reserve bank credit2, 649, 319

47, 9502, 686,819

16,1042, 720, 819

25, 9962, 735, 759

18, 2162, 748, 259

50, 6342, 764, 896

26, 2412, 784,896

33,2072, 735, 759

47, 361 55,9652, 564,015

-1 ,367

Total Reserve bank credit out-standing 2,715,315 2, 721,021 2, 764, 743 2, 771, 4 2, 816, 718 2, 837, 241 2, 801,021 2,878, 528 2, 585, 854

LIABILITIES

F. R. notes in actual circulation. 4,805, 254 4,817,094 4, 781,385 4, 743, 717 4, 756,457 4, 757,812 4, 732,133 4, 772,822 4, 719, 776 4,315,142

Deposits:Member bank—reserve account.. .U. S. Treasurer—general account..Foreign bankOther deposits

11, 587,156564,123454, 277317, 728

11, 748, 660347,622456, 231322,911

11,813, 664 11349,030470, 881319, 449

, 950,446326,003418, 898272, 874

11,906,847349,137414, 705283, 540

11, 739,156403, 535444, 207297, 400

11, 671, 664469,127466,137309, 403

11,972, 848286, 371415, 699312, 658

11,655,397544, 548447,873304,969

8, 713,092535, 277204, 063219, 612

Total deposits. 12,923,284 12,875,424 12,953,024 12,968, 221 12, 954, 229 12, 884, 298 12, 916, 331 12, 987, 576 12,952, 787 9,672,044

Ratio of total reserves to deposit andF. R. note liabilities combined (percent) 85.9 85.9 85.6 85.6 85.3 85.3 85.2 85.5 85.0 83.2

MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIESHELD BY FEDERAL RESERVE BANKS

[In thousands of dollars]

Bills discounted:Oct. 25Nov. 1Nov. 8Nov. 15

Industrial advances:Oct. 25 _Nov. 1Nov. 8Nov. 15 .

U. S. Government securities, direct and guar-anteed:

Oct. 25 ___Nov. 1Nov. 8Nov. 15

Total

5,7516,2486,4756,485

11, 76311,68011, 62311, 561

2, 735, 7592, 720,8192, 686, 8192,649, 319

Within15 days

1,3851,4041,5941,486

1,4421,5851,5771,467

48, 94054, 67548, 67569, 280

16 to 30days

125515315

3,546

3439873

357

48,67569, 28076, 70535,425

31 to 60days

3,6093,5783,361

278

408891

1,2451,011

182, 45335, 425

61 to 90days

207130393189

1,115700436476

91 daysto 6

months

317576753912

1,0401,0511,040

944

161, 705161, 705161, 705161, 705

6 monthsto

1 year

108455974

2,1042,0892,0322,114

138, 783138, 783136,783136, 783

1 yearto

2 years

2,9522,9612,9302,956

347, 365348,829348, 828345, 254

2 yearsto

5 years

2,3592,3052,2902,236

589, 282693, 567695, 567690, 567

Over5 years

1, 218, 5561, 218, 5551, 218, 5561, 210, 305



STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS[In thousands of dollars]

Total Boston NewYork

Phila-del-phia

Cleve-land

Rich-mond

At-lanta Chicago St.

LouisMin-neap-olis

Kan-sas

CityDallas

SanFran-cisco

ASSETS

Gold certificates on hand anddue from U . S . Treasury:

Oct. 25Nov. 1Nov. 8Nov. 15

Redemption fund — FederalReserve notes:

Oct. 25. . . .Nov. 1Nov. 8Nov. 15

Other cash:Oct. 25Nov. 1Nov. 8Nov. 15__.

Total reserves:Oct. 25Nov. 1Nov. 8.Nov. 15

Bills discounted:Secured by U. S. Govern-

ment obligations, directand guaranteed:


Other bills discounted:Oct. 25Nov. 1Nov. 8Nov. 15

Total bills discounted:Oct. 25Nov. 1Nov. 8Nov. 15

Industrial advances:Oct. 25Nov. 1Nov. 8Nov. 15

U. S. Government securities,direct and guaranteed:

Bonds:Oct. 25Nov. 1Nov. 8Nov. 15

Notes:Oct. 25Nov. 1Nov. 8Nov. 15

Bills:Oct. 25Nov. 1Nov. 8. . .Nov. 15

Total U. S. Governmentsecurities, direct and guar-anteed:


14, 804, 21014,839, 20614, 858, 21014,866, 654

8,9268,8469,139

10, 253

344,281339, 868323,888353, 716

15,157, 41715,187, 92015,191, 23715, 230, 623

9931,1801,0911,089

4,7585,0685,3845,:

5,7516,2486,4756,485

11,76311,68011, 62311, 561

1, 315, 9421, 315, 9421, 313, 9421,305,442

1, 245,4971, 245, 4971, 247,4971, 239,172

174, 320159, 380125, 380104, 705

2, 735, 7592, 720,8192, 686, 8192, 649, 319

853,152 7,855, 218850,142841,

,142 6,, 580 6,

1,1161,1161,0741,061

29,18429, 69129, 68030, 789

', 124, 3287,084, 774\ 998, 030\, 971,039

1,3451, 3451,1971,155

90, 04184, 37481,61387, 524

883, 452 7, 215, 714', 170, 493', 080, 840', 059, 718

,025 7886,880.873, 430 7\

), 896 7,

1008575

1008575

1,5711,5201,5011,422

95,17895,19895,10094, 538

90, 08490,10390, 29189, 738

12, 60811, 5309,0757,583

197, 870196,831194,466191, 859

313275249309

1,4741,525

1^500

1,7871,8001,8571,809

1,9981,9831,9841,974

416, 676416, 243414, 607410, 798

394, 370393, 960393, 642389, 944

55,19650, 41339, 56332, 949

866, 242860,616847, 812833, 691

731, 589752,121788, 293795, 848

454383

1,3831,308

29,64829, 97727, 42229, 974

761, 691782, 481817,098827,130

63553060

321321321321

384376351381

3,1363,1443,1453,153

113,124113,099112,869112,074

107,068107,045107,163106, 387

14,98513, 69810,770

235,177233, 842230, 802227, 450

379, 274 268. 600 2, 499, 949 410,1,151 2,511,503 412,

281, 370 2, 528, 284278,465 2, 539,001

883, 761918, 407 384, 272 273,914, 681928,083

389, 310390, 834

i, 036 247, 764 336,867!, 228 246,089 335, 535

425, 732 248, 255 335,007425, 209 246, 505 340, 518

536536480

1,000,

22, 24822,11620,64623, 787

575575256

1,237

20, 50022, 91220, 59525, 262

348348322294

17, 53718, 42018,12320, 808

968905838

46, 37042, 59843,05443, 341

840840825816

14, 36114, 51513,42115, 500

425, 237

327327321241

8,9278,8359,938

552552539517

18, 37119, 24918,12419,086

906, 545 400, 349 286,941, 059 407, 759 291, 919 2, 555, 069 427, 583 255, 251935,807 410,161952, 870 417, 333 299, 567 2, 583,180 441, 525 256,039 360,

485 2, 547, 287!, 555,

299, 815 2, 572, 243 439, 978 258, 514 353i

257,018 355, 790355,336

I, 6701,121

138173168143

478491477503

616664645646

339338337332

136, 950136,970136,807135, 974

129, 619129, 638129, 889129,071

18,14216, 58913,05510,906

284,711283,197279, 751275, 951

1101208171

342362362327

452482443398

1,0161,0131,0031,007

66, 53066, 62366,73966, 551

63,05863,36563,172

8,813

6,3685,338

10906565

136141170167

146231235232

644678

52, 34752, 39252,41752,196

49, 54549,58849, 76549, 545

6,9346,3455,0024,186

138,312 108,826137, 750* 108, 325136, 472 107,184135,061 105, 927

14510874101

417417433430

562525507531

445444444444

143, 664143, 719143, 630142, 845

135, 972136,025136, 366135, 593

19,03117, 40713, 70511,457

298, 667297,151293, 701289,895

60607575

146146156156

206206231231

7777

44,07844.10644.10743,89741, 71641, 74441,87541, 667

5,8395,3424,2093,521

91, 63391,19290,19189,085

3010013590

147141147159

177241282249

828818812810

35,05135,08735,11934, 986

33,17433,20933,34233, 211

4,6434,2503,3512,806

66

1,1241,3211,471

9491,1891,3811,537

200162161185

57,79057,87957,99857,854

54,69754,78155,06554,919

7,6557,0105,5344,640

72,868 120,14272, 546 119,67071, 812 118, 59771,003 117,413

215, 654215,142226, 778238,132

415406406389

17, 57016,91116, 28817, 332

233,639232,459243, 472255, 853

44194

1121019898

116105117102

522518512510

46,90846, 95146, 97946, 786

44,39744,43844, 60344,412

6,2145,6864,4833,752

97, 51997,07596,06594,950

853, 236850, 766872,328871, 440

1,4501,4501,4311,397

29, 52430, 27024, 98431,020

884, 210882, 486898, 743903, 857

55305030

301299291264

356329341294

1,0571,0551,0541,054

107, 646107,675107, 570106, 943

101,886101,908102,131101, 513

14,26013,04110, 2658,578

223, 792222,624219, 966217,034



STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS,BY WEEKS—Continued


Total BostonNewYork

Phila-del-phia

Cleve-land

Rich-mond

At-lanta Chicago St.

LouisMin-neap-olis

Kan-sas

CityDallas

SanFran-cisco

ASSETS—Continued

Total bills and securities:Oct. 25Nov. 1Nov. 8 .Nov. 15

Due from foreign banks:Oct. 25Nov. 1N o v 8Nov. 15

Federal Reserve notes of otherbanks:

Oct. 25Nov. 1Nov. 8 .Nov. 15

Uncollected items:Oct. 25___Nov. 1Nov. 8Nov. 15

Bank premises:Oct. 25Nov. 1Nov. 8___.Nov. 15

Other assets:Oct. 25Nov. 1Nov. 8Nov. 15

Total assets:Oct. 25Nov. 1 _..Nov. 8 .Nov. 15

2, 753, 2732, 738, 7472, 704, 9172, 667, 365

474474'

23, 38522,13320, 84423, 216

662, 257716,496578,163964,81'

42,10842,03742,03742,035

69, 43669,49270,07370, 581

18, 707, 92318, 776,87218,607,318

LIABILITIES

Federal Reserve notes in ac-tual circulation:


Deposits:Member bank—reserve ac-

count:Oct. 25Nov. l._.Nov. 8Nov. 15

U. S. Treasurer-generalaccount:


Foreign bank:Oct. 25Nov. 1Nov. 8Nov. 15

Other deposits:Oct. 25Nov. 1 _ _ .Nov. 8Nov. 15

4, 743, 7174, 781, 3854, 817,0944,805, 254

11, 950, 44611,813,66411, 748, 66011, 587,156

326,003349, C30347, 622564,123

418, 898470,881456, 231454, 277

272, 874319,449322,911317, 728

199,441198, 451196, 052193, 356

3333

553576688592

66,12377, 68459,10098,421

2, 9032,

870,027864, 399851, 653837,474

18181818

4,7464, 2363,3064,253

167, 343175,119116,931244,816

4,5344,5364,5724,605

22, 25222,19322, 39222, 568

238, 697237, 362234, 298230, 984

5555

943895670

1,218

48, 77547, 73937, 84470, 797

4,4,5944,5944,594

6,0275,9986,044

284,199280, 733276, 929

4444

1,4011,8511,5461,506

72,08087,40464, 648117,076

5,8945,894

5,r'5,8947,6447,6527,7367,766

139, 780139, 245137, 918136, 466

2222

2,7022,8843T"

56, 96361, 50753, 54179, 988

2, 5642,5572,5572,557

4,0814,0784.1254,151

109,616109, 234108, 082106, 822

2222

2,168I,-1,7451,502

25, 21727, 65825, 65734,519

2,0402,0412,0412,041

2,9232,930

2̂ 976

1,157,009 8, 289,1,170,1,144,1,173,305 8,177.

1,008245, 346084, 028

',735

732 1

400,330 1400, 305400, 231399, 410

, 187,0361, 202, 7651, 205, 8311, 203, 510

606, 676608,174602, 868 6;570, 731

6,404,9406, 256,122\ 139,7406,096, 910

21, 65221, 44120, 31841, 933

30, 87533,88933, 07933, 078

6,0065,8816,9967,874

95, 204112, 045115, 452152, 504

142, 998168, 062160, 645158, 688

183, 713218,646225,066228,860

1,060,1,079,0741,100, 5531,140,

333,002333, 989337, 704337, 366

581,117585, 326609, 704595, 266

13,83616, 90418, 93744, 300

41, 61345, 67444, 58244,581

10, 65718,33317,15115, 908

, 279, 234 606,1, 328,063 617, 850 435, 2'1,296,368 r '""1, 362,045 643, 765 447,429 3̂

708 428,451r0

611,188 440, 310

299, 674298,120294, 652290, 870

2,6032,9992,2282,481

90, 98391,06586, 379138, 467

3,8803,8713,8713,871

6,9286,9916,9887,056

2, 951, 3612, 958,1212, 966, 367i, 025, 931

91,91, 40590, 42989, 323

1111

1,6401,4271,9741,865

30, 28730,54529, 05441, 227

2,2562,2512,2512,250

2,1732,1802,1882,205

73, 87373,60572, 90672,062

1, 4111,207

1^097

19,13618,99018, 55324,178

1,5081,5011,5011,500

1,8751,8861,8941,918

121, 291121,021120,139119,135

1111

1,6051,6871,4221, 387

28,78034,10330, 24640,140

3,1323,1193,1193,119

2,8422,8592, 8862,913

98,15797, 698

95, 562

1111

557446545

26, 38825,04226, 70936,332

1,2721,2661,2661,266

2,3902,4182,4432,469

225, 205224, 008221, 361218, 382

4444

2,7892,6212,7483,549

30,18239, 64029, 50138, 856

3,1573,1573,1573,157

5,7675, 7715,8375,874

440 354, 821352, 440

565, 875 354, 456

553,555, 392

i78, 396 356, 794

513, 441518,12f511,4836-26. 816 391

362, 404359 330

1,151,314>6 359, 330 1,157, 687

1,161,3511,173, 679

371,130,981

220,481223, 798225, 247

448, 015 225, 548

440, 727440,096448, 301

158,778 1160, 345160, 585159, 864

,043,041, 047, 750, 051, 4871,052, 207

187,15788,9189, 4189, 3

, 1 3 7 , 274188,998 137,91389 408 138, 706

382 138, 700

177, 792179,269180, 503180,396

270,802651, 208 278,174 199,166 1, 682, 706 285, 712 153, 554668, 843 278, 215 195,014 1, 670,938 290,947 152,126 263,863659, 384 291, 428 202, 943 1, 673, 756652, 091 279, 791 198, 038 1, 639, 906 295^ 690 151,193 263, 334

82, 53683, 77584,18683, 555

207, 650211, 535221, 024217, 851

33, 89942, 66234, 22563, 624

39, 89743, 79142, 74342, 743

7,66512, 83212, 6318,961

16, 96019,1696,904

20,487

18, 44720, 24119, 76319, 763

1,9112,9534,6473,994

10, 87418, 92316, 75620,195

15, 01516, 48016, 08616, 086

7,1115,9906,2026,668

29, 74540,15851, 04990, 641

51, 90956, 97555,61255, 612

5,3075, 58815,3304,792

18, 62112,91511,62821, 337

12,44113, 65513, 32913, 329

7,7608,3087,4746,582

23,93120,82519, 39820,824

9,86710, 83010, 57110, 571

5,0075,4865,3295,021

13, 58216,04714,01719, 246

12, 44113,65513, 32813, 329

9001,1051,098845

18,04411, 21111, 58126, 634

12, 44113, 65513, 32813, 329

3,3794,3004,8124, 599

375, 563382,382394,905387, 301

628, 741632, 561627,053626, 355

29, 65516, 73027, 35742, 398

30, 95433, 96833,16533,168

33,45830,02726,17523, 624

' Less than $500.



STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS,BY WEEKS—Continued


LIABILITIES—ContinuedD eposits—C ontinued:

Total deposits:Oct. 25Nov. 1Nov. 8Nov. 15

Deferred availability items:Oct. 25Nov. 1Nov. 8Nov. 15

Other liabilities, including ac-crued dividends:

Oct. 25Nov. l._Nov. 8Nov. 15

Total liabilities:Oct. 25 . . . .Nov. 1Nov. 8Nov. 15

CAPITAL ACCOUNTS

Capital paid in:Oct. 25Nov. 1Nov. 8Nov. 15

Surplus (section 7):Oct. 25Nov. 1Nov. 8Nov. 15

Surplus (section 13b):Oct. 25Nov. 1____Nov. 8Nov. 15

Other capital accounts:Oct. 25Nov. 1Nov. 8Nov. 15

Total liabilities and capitalaccounts:


Contingent liability on billspurchased for foreign corre-spondents:

Oct. 25Nov. 1

Commitments to make indus-trial advances:


Total

12, 968, 22112,953,02412, 875,42412, 923, 284

644,088690, 547562,106916,914

4,1474,2784,4534,853

18, 360,17318, 429, 23418, 259,07718, 650,305

135, 557135, 580135, 597135,602

149,152149,152149,152149,15f

27, 26427, 26427, 26427, 264

35, 77735,64236, 22836, 361

18, 707, 92318, 776, 87218, 607, 31818,998, 684

101101

10,15610,0239,9669,919

Boston

i, 209 6,665,669,663, 261 6, 640;653,

i, 385 6,

I, 616 6,

67,13076,11756, 34995,835

342371358401

8,169,072 1, 028, 258 1, 246, 404 591, 772 415, 727 2, 906,416 542, 8531125 ""

1,133,0111,146,178 8,125| 340 11,120,199 7,963,1,149, 262 8, 057, 468

9,3839,3849,3839,383

10,08310, r10,08310,083

2,8742,8742,8742,874

1,6581,6541,6701,703

', 009 8.73 8,

493493484481

NewYork

>, 826, 855i, 754,875i, 640,903i, 636, 962

153, 732166, 223115,583215,1411

1,4491,4771, 5821,855

50, 90950,91250,91450,915

52, 46352, 46352,46352, 463

7,4577,4577,4577,457

9,1079,1749,2959,432

1,157,1,170,11,144, 21,173, 305 8,177, 735 1,

289,008245, 346084, 02817 ""

1,8911,8851,9341,907

Phila-del-phia

647,223666,237690, 374700,055

47, 58045,94239,49670,377

453438447468

, 046, 606 1, 295, 248 602, 938 422, 552 2,913, 242 544,8041,068,0211,108, 266 1, 329i 144 628,816 434', 685 2, 980', 961

12,11712,11712,11512,115

13, 69613, 69613, r13

4,4164,4164,4164,416

2,2452,2392,3052,315

955935923922

Cleve-land

732, 669 315,492 232,166 1,769, 667 324, 534~"~ '~~~ "- •-1,773,659 T

1, 785, 7471, 790, 951

768,128 320, 584

767^ 419 324',

4C7 1,236,748,983 322, 742 241, 987

035 240, 987

72, 61486, 61465, 766113, 264

394410428446

13, 79213,79613, 79713,799

14, 32314, 32314, 32314, 323

1,0071,0071,0071,007

3,7083,6893,7633,772

1,4071,3581,3561,362

Rich-mond

55, 68158,43548,12379,102

118121127131

5,1055,1075,1075,108

3,2933,2933,2933,293

1,5551,5291,5661,565

1, 060, 732 1, 279, 234 606, 708 428,4511,079,0741,100, 553., 140,808 1, 362', 045 643, 765 447,429 3,025, 931

858857856850

At-lanta

24, 59825, 60724, 79833, 635

185193195199

4,5614,5614,5614,561

5,6305,6305,6305,630

713713713713

1,8201,8141,8411,840

Chicago

336, 741336, 938

93, 32491, 42083, 744

137, 358

384413429445

555, 253567, 798

13.80313,80513.80413,804

22, 66622, 66622, 66622, 666

1,4291,4291,4291,429

7,0476,9797,0617,071

2, 951, 361

St.Louis

192, 359 297, 725325', 825 189, 267 294, 670

^50 289,441.190, 7187, 609 296, 754 262,413

30, 99829, 81428,92941, 297

164167175181

15,92816,00915, 72121, 216

123131135139

345, 684343, 320345, 312 5C1,345 360,026 1,136,333

3,9924,0044,0194,019

4,6854,6854,6854,685

545545545545

1,3651,3541,3731,349

415410410410

Min-neap-

olis

503, 320 351, 309 1,126,3475C8,024 348, 251

347, 664

2,9192,9192,9222,922

3,1533,1533,1533,153

1,0011,001l,0Gl1,001

2,0642,0472, ("2,054

516, 695 380,881

553, 440 354,821 513, 441555, 392 352,440 518,126565,875 354,456 511,483578,396 356,794 ,

Kan-sas

City

241, 514240,701250, 745

27, 62833,90631, 21639, 346

175179185199

4,3034,3034,3034,303

3,6133,6133,6133,613

,142,142,142,142

,063,044.,0801,063

Dallas

27,14723,65824, 97534,788

112117120125

1,132, 731

4,0504,0514,0514,052

3,892

3,8923,892

1,2661,: '

1,266

1,8871,8701,!1,890

362, 404359, 330371,130

526, 816 391, 981

567567567567

SanFran-cisco

722,808713,286713, 750725, 545

27, 72836,80227,40635, 555

248261272264

1,148, 665

10,62310,62110, 62110,621

9,9659,9659,9659,965

2,1212,1212,1212,121

2,2582,2492,3112,307

1,151, 3141,157, 6871,161, 3511,173,679

3,4043,3543,2733,257



INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERALRESERVE ACT, JUNE 19, 1934, TO NOVEMBER 15, 1939

[Amounts in thousands of dollars]

Date (last Wednesday ofeach month)

1934—Dec. 26. __1935—June 26_._

Dec. 314__1936—June 2 4 . . .

Dec. 30 ._ .1937—Mar. 3 1 . . .

June 3 0 . . .Sept. 29. . .Dec. 29. _.

1938—Mar. 30 . . .June 2 9 . . .Sept. 28 . . .Dec. 2 8 . . .

1939—Jan. 2 5 . . . .Feb. 214__Mar. 29. . .Apr. 2 6 . - .May 3 1 . . .June 28 _ -July 26. . . .Aug. 30 . . .Sept. 27. .Oct. 25_.. .Nov. 15 •»..

Applicationsreceived by

Federal Reservebanks after con-sideration by In-dustrial AdvisoryCommittees, net

Number

4,3866,3257,4378,0068,2478,3448,4308,4748,5348,7088,9769,1029,1889,2039,2219, 2499,2709,2969,3089,3309,3559,3669,3889,396

Amount

146,972237, 581293,084314,471328, 998333, 300339, 509341,842350, 551358, 936369, 583378, 974387,490389,176389, 554392, 230394, 055394, 970395,499399,780401, 228402, 305402,944404,144

Applications underconsideration byFederal Reserve

banks

Number

71682812

59

1017

1988587

1476567

• 213

Amount

2,95511, 3492,8231,8801,2451,3221,263

800550

1,299476146247999964344495400255760532370

70470

Applications approved to date by Federal Reserv

Total

Number

9841,6461,9932,1832,2802,3232,3612,3812,4062,4642,5662,6172,6532,6602,6712,6832,6972,7132,7212,7302,7432,7522, 7632,768

Amount

49, 63488, 778

124,493133,343139,829141, 545145, 758146, 724150, 987154, 918161,158168, 380175,013175, 651175, 902177, 895178, 639179, 332179, 778183, 354184,152185, 234186,034186, 799

without conditions)

FederalReservebank

advancesout-

standing*

13, 58927, 51832,49330,48425, 52623,05923, 01921, 41520, 21619, 37118, 44417, 56717, 34516, 81116, 47415, 79815, 81715, 30515, 25515, 38414, 66714,45414, 54514, 341

FederalReserve

bankcommit-mentsout-

standing

8,22520, 57927, 64924, 45420, 95918, 61116, 33114,88012, 78013,11013, 64913, 59714,16113,00412, 90712, 64711, 74911,53011,17511,47611,00910, 51710,1569,919

Approvedbut not

com-pleted a

20,96611,24811, 5489,3818,2267,8981,470

5373,3693,4193,0845,7371,9461,2931,1051,9752,1342,4962,067

7331,2201,9381,7642,267

e banks (with and

Repaid,expired,or with-drawn by

appli-cant,etc.

5,55824, 90044,02561,42577, 91085,21097, 663

102, 588107,384111,193117,555122,447128, 839132,009133,001135,004136,696137, 922139,281142, 943144,812146,156148,037148,888

Financ-ing insti-tutionpartici-pations

out-standing s

1,2964,5338,7787,5997,2086,7677,2757,3047,2387,8258,4269,032

12, 72212, 53412, 41512,47112, 24312,07912,00012,81812,44412,16911,53211, 384

i Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in waskly statement ofcondition of the Federal Reserve banks.

J Includes applications approved conditionally by the Federal Reserve banks and under consideration by applicant.3 Does not include financing institution guaranties of advances and commitments made by Federal Reserve banks, which amounted to $1,513,763

November 15, 1939.4 Tuesday.6 Latest date for which figures are available.

FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS[In thousands of dollars]

Federal Reserve notes:Issued to F. R. bank by F. R. agent:

Oct. 25Nov. 1Nov. 8.Nov. 15

Held by Federal Reserve bank:Oct. 25_Nov. 1Nov. 8Nov. 15

In actual circulation:1


Collateral held by bank as security fornotes issued to bank:

Gold certificates on hand and duefrom U. S. Treasury:


Eligible paper:Oct. 25Nov. 1Nov. 8Nov. 15

Total collateral:Oct. 25Nov. 1Nov. 8..Nov. 15

Total

5,060,8025,069, 2425,102,4035,096, 606

317,085287, 857285, 309291, 352

4, 743, 714, 781, 3854,817,0944,805, 254

5,164,0005,166,0005,177,0005, 202,000

1,6262,1322,3462,337

5,165, 6265,168,1325,179, 3465, 204, 337

Bos-ton

429,043429,080427,162424,913

28, 71328, 77526,25, 503

400,330400,305400,231"1,410

440,000440,000440,000440,000

1008575

440,000440,100440,085440,075

NewYork

Phila-del-phia

1, 283,175 231,531351', 726 462', 537 235, 667354,036 467, 921 236,425

1, 288^ 849 359, 541 468, 229 237, 692

1,283,9811, 290,398

96,13981, 21684,56785, 339

1,187,0361, 202,7651, 205,8311, 203, 510

1, 305,0001, 305,0001,315,000

353370418360

1,305, 3531, 305, 3701,305,418 360;1, 315, 360

351, 207 461,881351, 726 462,354,036 467,921

18, 20517, 73716, 33222,175

333,002333,989 440,096 223;

1, 305,000 360,000 465,000 235,000

63553060

360,063360,055

1,030370,060

Cleve-land

Rich-mond

21,15422,44119, 62020, 214

440,727

337, 704 448, 301337, 366 448,01

360,000 465,000 237,000360,000 471,000 240,000370,000 471,000 245, 000

465,000465,000471,000471,000

11,05011,86911,17812,144

220,481

225, 247225, 548

310340301256

235, 310237, 340240,301245, 256

At-lanta

170,119171, 743172,178172,182

11,34111, 39811, 59312, 318

158, 778160, 345160, 585159,864

174,000174,000174,000174,000

174,000174,000174,000174, 000

Chi-cago

1,080,862 1991,080,9361,081,875 ,1,079, 342 200,

, 722199,996200, 249200, 603

37,82133,18630,38827,135

1,090,000 203,1101,090,000 203, "1,090,000 203.1, 090, 000 203,135

St.Louis

12,56510,99810,84111,221

1,043,0411,047,750 188; 998 137!1,051,487 189,408 138!1,052, 207 189, 382 138,

1, 090,000 203,000 143, 5001,090,000 203,000 143, 5001,090,000 203,000 145, 5001090000 0 0 0 4 0

190,000190, 000

, , , , 190,0001,090,000 203,000 145, 500 190,000

110 74 716110 144 1,013

185 1,192135 148 1,303

Min-neap-olis

141, 662142,385143, 753143,162

4,3884,4725,0474,462

137, 274" ,913

I, 706I, 700

143, 574143, 644145, 685 191145, 648 191

Kan-sas

City

187,064186, 504189, 276188,466

9,2727,2358,7738,070

177, 792179,269180, 503180, 396

190,716191,013'" ,192

,303

Dallas

91,390 433,:90, 728 433,95991, 676 447,''"'90, 900 442, 727

8,8546,9537,4907,345

94, 500 464,94, 500 464!94, 500 464!

SanFran-cisco

13,14613,959=7,454

57, 58351, 57752, 54955,426

82, 536 375, 56383, 775 382, 38284,186 394, 90583, 555 387, 301

:,000:,000:,000

94, 500 464,000

500 464,000500 464,000500 464,000500 464,000

1 Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve bank other than the issuing bank.



RESERVE POSITION OF MEMBER BANKS,OCTOBER, 1939

[Averages of daily figures. In millions of dollars]

Classes of banksand districts

All member banks _ _

Central reserve city banks:New YorkChicago

Reserve city banks:Boston districtNew York districtPhiladelphia district..Cleveland districtRichmond districtAtlanta districtChicago districtSt. Louis districtMinneapolis district..Kansas City district...Dallas districtSan Francisco district.

Total

Country banks:Boston districtNew York districtPhiladelphia district..Cleveland districtRichmond districtAtlanta districtChicago district. _St. Louis districtMinneapolis district..Kansas City district...Dallas districtSan Francisco district.

Total _ .

Grossde-

mandde-

posits

36,732

13, 5882,831

1,214221

1,3281,736

781751

1,336872409

1,071760

2,253

12, 733

9131,353

673621556490897383323474545350

7,579

Netde-

mandde-

posits >

29,973

12, 9522,506

1,102177

1,0881,332

594508922647295660468

1,784

9,576

653981447411334290554235204282324223

4,939

Timede-

posits

11, 735

744495

8815524672420817757517990

158128

1,924

4,652

5581,395

874673350224725241272157104270

5,843

Reserves withFederal Reserve

banks

Re-quired

6,372

2,984595

19739

20326911498

190122

5612388

408

1,908

10618897835846

1034038424440

885

Held

11,862

5,9581,112

40751

398495182130333215

88201132571

3,203

1933651741459674

2086861717854

1,588

Ex-cess

5,490

2,974518

21013

196226

6732

14393327744

163

1,295

86177

77623928

1052823303413

704

1 Gross demand deposits minus demand balances with domestic banks(except private banks and American branches of foreign banks) andcash items in process of collection.

NOTE.—See table at foot of p. 1113 for percentages of deposits requiredto be held as reserves

MEMBER BANK RESERVE BALANCESBY CLASSES OF BANKS

[Averages of daily figures. In millions of dollars]

Total reserves held:1938—September

OctoberNovemberDecember

1939—January.FebruaryMarchAprilMayJuneJulyAugustSeptemberOctober

Week ending (Friday):1939—Sept. 22

Sept. 29Oct. 6Oct. 13Oct. 20Oct. 27Nov. 3Nov. 10

Excess reserves:1938—September

OctoberNovemberDecember

1939—JanuaryFebruaryMarch.AprilMayJuneJulyAugustSeptemberOctober

Week ending (Friday):1939—Sept. 22

Sept. 29Oct. 6Oct. 13Oct. 20Oct. 27Nov. 3Nov. 10

Allmem-

berbanks *

8,1968,5468,7278,7459,0298,9259,0219,6249,997

10,08510, 32110, 65911,44311,862

11, 59311, 64011, 67511, 74711,92112,00111, 92011, 759

2,9203,1433,2763,2263,4843,3733,4323,9264,2124,2464,4024,6075,1985,490

5,3175,3525,3615,4025,5415,590

P5, 503P5, 358

Central reservecity banks

NewYork

3,6693, 9394,0754,1394,4094,4824,4724,8895,0945,0495,1955,3665,8665, 958

5,9255,8995,8985,8965,9876,0235,9305,760

1,3821,5891,7121,7341,9962,0471,9862,3022,4652,3942,5042,5872,9432,974

2,9822,9562,9362,9273,0043,0202,9242,772

Chi-cago

861884888898780673681794878893848923

1,0091,112

1,0491,0911,0901,0941,1121,1291,1371,119

361375374376260164179299360362305363430518

466503504504515530535522

Re-servecity

banks

2,3522,4092,4262,3872,4742,4052,4752,5442,6302,7282,8272,8833,0093,203

3,0503,1013,1073,1663,2213,2653,2633,271

698712710658734669741794858944

1,0131,0461,1471,295

1,1801,2231,2241,2651,3061,3421,3391,340

Coun-try

banks *

1,3141,3171,3381,3221,3661,3641,3931,3971,3951,4151,4511,4861,5591,588

1,5691,5501,5801,5911,6021,5831,5901,609

479467480457495494526531529546581611678704

706717

p Preliminary.1 Weekly figures of excess reserves of all member banks and of country

banks are estimates.

DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS[Averages of daily figures. In millions of dollars]

Federal Reserve district

BostonNew York .PhiladelphiaClevelandRichmondAtlantaChicago _ _ _St. LouisMinneapolisKansas City. _DallasSan Francisco

Total

All member bank.

Gross demand

Oct.

2,12815,1622,0012,3581,3371,2415,0641,255

7321,5451,3062,602

36, 732

Sept.

2,05014,876

1,9322,2801,2981,2014,9391,210

7221,5201,2562,537

35, 820

5

Time

Oct.

6472,2951,1201,397

558400

1,795420362315231

2,194

11, 735

Sept.

6512,2751,1231,397

556400

1,784420362315232

2,193

11, 706

Member banks in larger centers(places over 15,000)

Gross demand

Oct.

1,989l 1, 272

1,7552,1231,1431,089

1 1, 9011,026

5411,1991,0042,477

117, 520

Sept.

1,914i 1, 227

1,6922,0471,1101,052

i 1,858988536

1,176966

2,416

116, 981

Time

Oct.

518i 1,048

6671,097

363314

i 1,006303178201186

2,096

i 7,976

Sept.

522i 1,042

6701,098

362314

i 999303177200186

2,095

i 7,968

Member banks in smaller centers(places under 15,000)

Gross demand

Oct.

138302246235195151332229191346302125

2,792

Sept.

136302240233189149326222186343290121

2,737

Time

Oct.

129502453300195

872941171851144698

2,520

Sept.

12950145329919486

2933171851154698

2,515

* Excluding central reserve city banks, for which figures for latest month are shown in table above.


D E C E M B E R 1939 FEDERAL RESERVE BULLETIN 1103

KINDS OF MONEY IN CIRCULATION[Outside Treasury and Federal Reserve banks. In millions of dollars]

End of month

1938—October....November.December..

1939—January-February..MarchAprilMayJune.July.AugustSeptember.October

Total

6,7006,7876,856

6,6536,7316,8176,9056,9677,0477,0497,1717,2937,342

Goldcertifi-cates

767675

75747473727271717170

Silverdollars

Silvercertifi-cates

1,2971,3121,339

1,2691,3271,3781,3851,4171,4541,4461,4651,4881,485

Treas-ury

notesof 1890

Subsid-iary

silvercoin

351356357

348350352354358361362365369373

Minorcoin

148151151

149150151152154155156157159161

UnitedStatesnotes

257

244246251255259266264267269267

FederalReserve

notes

4,2824,3494,405

4,3014,3204,3504,4264,4494,4844,4964,5954,6884,739

FederalReserve

banknotes

Na-tionalbanknotes

206203201

198195193191189186184182180178

Back figures—See Annual Report for 1937 (table 35).

PAPER CURRENCY, BY DENOMINATIONS, AND COIN IN CIRCULATION[Outside Treasury and Federal Reserve banks. In millions of dollars]

End of month

1938—OctoberNovemberDecember

1939—JanuaryFebruaryMarchAprilM a yJuneJulyAugustSeptember.October

Totalin cir-cula-tion i

6,7006,7876,856

6,6536,7316,8176,9056,9677,0477,0497,1717,2937,342

Coin and small denomination currency 2

Total

5,0215,0965,147

4,9535,0115,0495,0695,1095,1645,1695,2535,3295,363

Coin

540548550

538541544548554558561566571577

$ 1 3

505511524

492498503505513514514521532535

$2

323334

32333332333333343434

$5

923936946

904919928929937947947966980982

$10

1,5721,5991,611

1,5461,5741,5941,6021,6141,6381,6441,6811,7061,710

$20

1,4501,4691,481

1,4401,4461,4481,4531,4581,4731,4701,4871,5071,526

Large denomination currency 2

Total

1, 6831,6961,714

1,7051,7211,7701,8381,8611,8871,8851,9221,9651,981

$50

400404409

403406411418422428426433440445

$100

754761770

768774799829836848847857876884

$500

157158160

160161165170172176175180185186

$1,000

321323327

329335349370380388391405413415

$5,000

181717

17171718171717172020

$10,00c

333232

28282833332928303030

Un-assort-

ed!

455

6123334412

1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks.2 Includes unassorted currency held in Treasury and Federal Reserve banks and currency of unknown denominations reported by the Treas-

ury as destroyed.3 Paper currency only; $1 silver coins reported under coin.Back figures—See Annual Report for 1937 (table 36).

TREASURY CURRENCY OUTSTANDING[Held by Treasury and Federal Reserve banks and in circulation,

millions of dollars]In

End of month

1938—October _ . „November.December..

1939—January.......February __MarchAprilMayJune. _JulyAugustSeptember.October

Total

2,7512,7732,798

2,8162,8242,8392,8492,8622,8812,8952,9072,9192,932

Silverdollars

andsilverbul-lion *

1,6341,6571,685

1,7051,7171,7331,7461,7591,7781,7941,8041,8141,825

Sub-sid-iary

silvercoin

376376376

376376377376377380381383386390

Minorcoin

158158159

159160160160161161162162164166

UnitedStatesnotes

347347347

347347347347347347347347

••347347

Fed-eralRe-

servebanknotes

292928

28272727262626252525

Na-tionalbanknotes

208206203

201198196193191189186185183181

'•Revised.1 Includes silver held against silver certificates amounting to $1,729,

000,000 on October 31, 1939 and $1,564,000,000 on October 31, 1938.

SHIPMENTS AND RECEIPTS OF UNITEDSTATES PAPER CURRENCY

[By selected banks and financial insti tutions in New York City .In millions of dollars]

Year or month

193619371938

1938—October....November.December.

1939—January....February..MarchAprilMay. .JuneJulyAugust . . . .SeptemberOctober. . .

Ship-ments toEurope

34.821.533 1

10.63.4

.7

6.73.0

27.346.1

3.82.92.24.7

.81.8

Receiptsfrom

Europe

26.247.634 4

.61.02.2

2.01.0.9. 3.7

1.11.0.9. 1. 2

Netship-ments

8.6

10.02.4

4.72.0

26.445.83.11.81.23.8

.71.6

Back figures.—See Annual Report for 1937 (table 38).Description.—See BULLETIN for January 1932, pp. 7-8.

Netreceipts

26.11.3



ANALYSIS OF CHANGES IN GOLD STOCK OFUNITED STATES[In millions of dollars]

Period

19341 . .1935193619371938

1937—JulyAugustSeptemberOctoberNovemberDecember

1938—January.FebruaryMarch.AprilMayJuneJuly . .August... •.SeptemberOctoberNovemberDecember .

1939—JanuaryFebruary....MarchAprilM a yJuneJulyAugustSeptemberOctoberNov. 1-22P

Gold stock atend of period

Total

8,23810,12511, 25812, 76014, 512

12,44612, 56712, 74112, 80312, 77412, 760

12, 75612, 77612, 79512, 86912 91912, 96313, 01713,13613, 76014, 06514, 31214, 512

14, 68214, 87415, 25815 79115,95716 11016, 23816, 64616, 93217, 09117, 257

nactiveaccount

26.51,227.9

1, 214.11, 335. 71, 210. 01, 271. 91, 242. 51, 227. 9

1, 223. 21, 200. 61,183. 0

In-crease

in

goldstock

4,202.51,887. 21,132. 51, 502. 51, 751. 5

127.3121.6174.362.0

-29.3-14.0

- 4 . 620.718.574.349.844.254.5

118.3623.8305.0247.5199.6

170.0192. 7383.8532. 3166.2153.3128.0407.6285.9159.9165.7

Netgold

import

1,133.91, 739. 01,116. 61, 585. 51, 973. 6

175.4104.8145.590.522.118.0

2.18.0

52.971.152.855.363.8

166.0520.9562.4177. 8240.5

156.3223.3365.4605.8429.4240.4278.6259.9326.169.769.6

Netgain orOSS ( - )

through

markingtrans-

actions 2

82.6.2

-85.9-200.4-333. 5

-35.5- 5 . 3

9.3- 8 . 0

-20.1-101.6

- 1 . 1-18.2

- . 6- 1 . 2

-53.9-15.5-20.9-28.8-13.3

-110.2- 7 . 4

-62.4

14.1-48.6

10.7-114.8-251.6-102.6-166.2

152.12.8

79.582.4

Do-mes-tic

goldpro-duc-tion

96.0110.7131.6143.9148.6

12.716.912.214.913.811.9

11.010.010.710.611.59.6

14.214.714.113.515.513.3

12.210.411.013.112.610.613.114.015.6

p Preliminary.1 Figures based on rate of $20.67 a fine ounce in January 1934 and $35

a fine ounce thereafter.2 Gold held under earmark at Federal Eeserve banks for foreign ac-

count on October 31, 1939, in millions of dollars: 1,053.1.NOTE.—Figures for domestic production of gold are those published

in table, p. 1135, adjusted to exclude production in Philippines. Ad-justment based on annual figures reported by Director of Mint andmonthly imports of gold to U. S. from Philippines. For back figuressee Annual Report for 1937 (table 29).

BANK SUSPENSIONS^

Number of banks suspended:193419351936193719381939—Jan.-Oct

Deposits of suspended banks(in thousands of dollars):"

193419351936193719381939—Jan.-Oct

Total,all

banks

36, 93710,01511, 30619, 72313,01234, 762

Memberbanks

Na-tional

405,313

5077,379

361,357

State

1,708211

25, 736

Nonmemberbanks

In-sured1

1,9123,76310, 20710,15611,7215,202

Not

34, 98,93!59S48C

1,0442,46;

1 Represents licensed banks suspended; does not include nonlicense<banks placed in liquidation or receivership.

2 Federal deposit insurance became operative January 1, 1934.* Deposits of member banks and insured nonmember banks suspended

are as of dates of suspension, and deposits of noninsured nonmembeibanks are based on the latest data available at the time the suspension;were reported.

Back figures—See Annual Report for 1937 (table 76).

Belgiumance.. .

:talyNetherlandsSweden.SwitzerlandUnited Kingdom...Canada.MexicoCentral America.__

ArgentinaChileColombiaEcuadorPeruVenezuelaAustraliaBritish IndiaChina and Hong

Kongapan

Dhilippine Islands.South AfricaAll other countries2.

MOVEMENT OF GOLD TO AND FROMUNITED STATES *[In thousands of dollars]

From or t o -

Total 69,740

1939

October

Im-ports

6,3632,990

10,1829,9541,794

3944

785423

8,4202,703

4,08712,4973,1882,14"!,854

Ex-ports

September

Im-ports

1,482162, 451120, 850

653445

8162,102

1431,357

3755,4744,065

5,15716, 4253,948

11247

15 326,089

Ex-ports

Jan.-Oct.

Im-ports

165,1223,7706,363

301,3113,860

78, 9461, 797,485

239,26426, 3984,8474,5098,252

19,0062,1014,6533,601

55, 27233,226

20, 518136,01730, 3492,528

15 2,955,485

Ex-ports

6854

156206

487

i Figures represent customs valuations which, with some exceptions,xe at rate of $35 a fine ounce.

* Includes all movements of unreported origin or destination.Back figures.—See table, p. 1135, and Annual Report for 1937 (tables

1 and 32).

BANK DEBITSDebits to individual deposit accounts, at banks in principal cities.]

[In millions of dollars]

Year and month

1929..1935..

1937..1938..

1938—September..OctoberNovember..December. _

1939—JanuaryFebruary...MarchAprilMay.June.July .__AugustSeptember..October

Total,all

report-ing

centers

982, 531402, 718461, 889469, 463405,929

32,19236,13032, 22443, 209

35,18029,97337, 32232, 82234, 65636,88333, 24533,31436, 59435,830

NewYorkCity

184,006

197,836168, 778

13,08515,14012,42518,879

14, 53312, 38016, 27413, 31114,16515, 31212, 79413,11815,13813, 683

140otherlead-ing

cities i

331,938190,165219, 670235, 206204, 745

16, 44018, 09617,03921, 087

17, 86015, 20118, 21116,83217, 76318, 67617,68317,49618, 52619,029

133other

report-ing

cities 2

47,50428, 54733,28336,42132,406

2,6662,8952,7603,243

2,7862,3922,8372, 6792,7282,8952,7682,7012,9303,119

1 Comprises centers for which bank debit figures are available begin-ning with 1919, except that one substitution was made in 1920 and onein 1928.

2 Cities (other than the 141 centers) for which bank debits are currentlyreported. The number has changed very little since 1934 and has num-bered 133 since 1936.

Back figures.—See Annual Report for 1937 (Table 71), which also givesa definition of bank debits. Figures for individual reporting cities andtotals by Federal Reserve districts are available in mimeographed form.



ALL BANKS IN THE UNITED STATESComprises all national banks in the continental United States and all State commercial banks, trust companies, mutual and stock savings banks

and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the periodJune 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports tothe Comptroller of the Currency. Under the amended provisions of sec. 21 (a) private banks no longer report to the Comptroller of the Cur-rency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve Bulletin forDecember 1935, p. 883, and July 1936, p. 535. Figures for nonmember banks are for dates indicated or nearest thereto for which figures areavailable.

NUMBER OF BANKS

Call date

1929—June 29Dec. 31

1933—June 30Dec. 30

1934—June 30Dec. 31

1935—June 29Dec. 31

1936—June 30Dec. 31

1937—June 30Dec. 31

1938—June 30Dec. 31

1939—June 30Oct. 23

Total

25,11024, 630

14, 51915, 011

15, 83516,039

15, 99415, 837

15, 75215, 628

15, 52715, 393

15, 28715, 206

15,082

Member banks

Total

8,7078,522

5,6066,011

6,3756,442

6,4106,387

6,4006,376

6,3576,341

6,3386,338

6,3306,339

Na-tional

7,5307,403

4,8975,154

5,4175,462

5,4255,386

5,3685,325

5,2935,260

5,2425,224

5,2035,196

State

1,1771,119

709857

958980

9851,001

1,0321,051

1,0641,081

1,0961,114

1,1271,143

Nonmemberbanks

Mutualsavingsbanks

611609

576579

578579

571570

566565

564563

563556

553

Othernon-

mem-ber

banks

15,79215,499

8,3378,421

8,8829,018

9,0138,880

8,7868,687

8,6068,489

8,3868,312

8,199

For footnotes see table below.

DEPOSITS, EXCLUSIVE OF INTERBANKDEPOSITS*

Call date

1929—June 29...Dec. 31—

1933—June 30Dec. 30. . .

1934—June 30Dec. 31.__

1935—June 29 _.Dec. 31_._

1936—June 30..Dec. 31__.

1937—June 30..Dec. 31—

1938—June 30—Dec. 31—

1939—June 30. ..Oct. 23. . . .

[

Allbanks

53,85255, 289

37,99838, 505

41,87044, 770

45, 76648,964

51,33553, 701

53, 28752, 440

52,19554,054

55, 992

In millions of dollars]

Member banks

Total

32,28433, 865

23,33823, 771

26, 61528,943

29,49632,159

34, 09835,893

35,44034,810

34, 74536, 211

38,02739, 287

Na-tional

19,41120, 290

14,77215,386

17,09718, 519

19,03120,886

21, 98623,107

22,92622, 655

22, 55323, 497

24, 53425, 248

State

12,87313, 575

8,5668,385

9,51810, 424

10, 46511, 273

12,11212, 786

12, 51412,155

12,19312, 714

13, 49314,039

Nonmen

Mutualsavingsbanks

8,9838,916

9,7139,708

9,7809,828

9,9209,963

10, 06010,143

10, 21310, 257

10, 29610, 365

10, 521

iber banks

Othernonmem-ber banks

12, 58412, 508

4,9465,026

5,4756,000

6,3506,842

7,1787,666

7,6357,373

7; 1537,478

7,444

For footnotes see table below.

LOANS AND INVESTMENTS[In millions of dollars]

Call date

1929—June 29. _.Dec. 31

1933—June 30Dec. 30

1934—June 30. .Dec. 31

1935—June 29Dec. 31

1936—June 30Dec. 31

1937—June 30 „Dec. 31

1938—June 30Dec. 31 2

1939—June 30 2

Oct. 2 2 3

All banks

Total

58,47458, 417

40,07640,319

42, 50243,458

44, 41645, 717

48,45849, 524

49, 69648, 566

47,38148, 929

49, 611

Loans

41, 53141, 918

22,20321,977

21, 27820, 473

20, 27220, 329

20, 67921,449

22, 51422,198

21,13021, 354

21,314

Invest-ments

16, 94316,499

17, 87218, 342

21, 22422, 984

24,14525, 388

27, 77828, 075

27,18226, 368

26, 25227, 575

28, 297

Member banks

Total

35, 71135, 934

24, 78625, 220

27,17528,150

28, 78529, 985

32, 25933,000

32, 73931, 752

30, 72132,070

32, 60333,075

Loans

25, 65826,150

12,85812,833

12, 52312,028

11, 92812,175

12, 54213, 360

14, 28513,958

12,93813, 208

13,14113,470

Invest-ments

10,0529,784

11, 92812, 386

14, 65216,122

16, 85717,810

19, 71719, 640

18, 45417, 794

17, 78318, 863

19, 46219, 605

Nonmember banks

Mutual savings banks

Total

9,5569,463

10,0449,985

9,9049,782

9,8529,804

9,96110,060

10,18010,187

10,19610, 255

10,342

Loans

5,8925,945

5,9415,906

5,6485,491

5,3415,210

5,1055,027

5,0024,996

4,9614,930

4,931

Invest-ments

3,6643,518

4,1034,079

4,2564,291

4,5114,594

4,8565,034

5,1785,191

5,2355,325

5,411

Other nonmember banks

Total

13,20713,020

5,2465,115

5,4235,526

5,7795,927

6,2386,464

6,7786,627

6,4656,604

6,665

Loans

9,9819,823

3,4043,238

3,1082,955

3,0032,944

3,0323,062

3,2273,244

3,2313,217

3,242

Invest-ments

3,2273,197

1,8411,877

2,3152,571

2,7772,983

3,2063,402

3,5503,383

3,2343,387

3,423

1 Prior to Dec. 30, 1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000on that date. The nonmember bank figures include interbank deposits to the extent that they are not shown separately in a few State bankabstracts.

2 Beginning December 1938 figures of loans and investments exclude approximately $50,000,000 and $100,000,000, heretofore reported as loansand investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reports among"Other assets."

3 Figures of all banks not available.Back figures—See Annual Report for 1937 (tables 48-49).



CONDITION OF ALL MEMBER BANKS[In millions of dollars]

Call date

Totalloansandin-

vest-ments

Loans 1

Total i

Com-mer-cial,in-

dus-trial,andagri-cul-

tural 2

Openmar-ket

paper

Loans forpurchasingor carryingsecurities

Tobrok-

ersanddeal-ers

Toothers

Realestateloans

Loansto

banksOtherloans *

Investments i

Total

u.

Total

3,8636,8879,906

LO, 501LI, 639LO, 574LO, 882LO, 691LO, 946LO, 893

1,1122,5513,2463,4253,7393,2072,9632,9393,3603,401

116384743

1,0611,107

9161,005

9921,0401,017

1,3682,4833,8094,0764,4263,9614,2784,1814,1024,091

1,2671,4692,1081,9402,3682,4902,6362,5782,4442,383

S. Government obligations

Direct

Bills

6 24961,11361,030

1,1921,053

662286303441(8)

»586 638

75886571849515868

168(8)

6 36 206

1642131983259

121185(8)

6 916 205

9585

120106

57100

78(8)

6 976 6 4«13

281729111511

C8)

Notes

5202,0494,2175,4034,5274,2773,3892,6042,720

(8)

166987

1,6641,8101,5591,5361,142

831908(8)

1982

299604375366291212234(8)

165681

1,6922,2671,9041,5891,224

9771,014

(8)

171299562722689786732585563(8)

Bonds

3,0943,7254,6593,9056,0605,6357,2087,7837,786

(8)

889926824749

1,4621,1751,6632,0402,284

(8)

9497

279243533518655660621C8)

1,1121,5972,0221,7242,4032,2672,9973,1053,010

(8)

9991,1061,5331,1891,6621,6751,8931,9781,870

(8)

Guar-an-teed

9891,7681,9061,7972,3402,6602,8312,918

278401470388894

1,0861,1231,157

78889494

109108135155

279656697637740823889907

355623645678597643683699

Obli-gations

ofStates

andpolit-icalsub-divi-

sions 5

1,3931,7441,9652,1782,2262,0472,4482,5552,5542,764

222478446507426342517582480662

9687

129141143135141149154147

448598649723774691808823895897

627581741807883879982

1,0011,0251,058

Othersecur-ities i

TOTAL—ALLMEMBERBANKS

1929—Dec. 31..1933—June 30_.1934—Dec. 31..1935—Dec. 31 _.1936—Dec. 31..1937—Dec. 31..1938—Dec. 31..1939—Mar. 29..

June 30..Oct. 2 . . .

NEW YORKCITY »

1929—Dec. 31..1933—June 30..1934—Dec. 31..1935—Dec. 31..1936—Dec. 31..1937—Dec. 31..1938—Dec. 31..1939—Mar. 29..

June 30..Oct. 2...

CITY OFCHICAGO 9

1929—Dec. 31..1933—June 30_.1934—Dec. 31. _1935—Dec. 31..1936—Dec. 31. _1937—Dec. 31..1938—Dec. 31..1939—Mar. 29__

June30__Oct. 2...

RESERVE CITYBANKS

1929—Dec. 31..1933—June 30..1934— Dec. 31.1935—Dec. 31.1936—Dec. 31.1937—Dec. 31.1938—Dec. 31..1939—Mar. 29_

June 30.Oct. 2...

COUNTRYBANKS

1929—Dec. 31..1933—June 30..1934—Dec. 31.1935—Dec. 31.1936—Dec. 31.1937— Dec. 31.1938—Dec. 31.1939—Mar. 29.

June 30_.Oct. 2 . .

35,93424, 78628,15029,98533,00031, 75232,07032,09532,60333, 075

8,7747,1337,7618,4189,2808,3138,3358,4088,6889,044

1,7571,2871,5811,8682,1001,9011,9691,9652,0522,050

12,0298,49210,02810,78011,79511,41411,65411,62411, 75611,880

13,3757,8738,7808,9199,82510,12410,11310,09810,10910,102

26,15012, 85812,02812,17513, 36013, 95813, 2083,0473,14113,470

6,6833,4243,1593,4343,8553,6733,2623,0862,9883,116

1,448677532476633635539545544563

9,0844,4824,3124,3474,7945,2034,9634,9365,0045,127

8,9364,2754,0253,9184,0784,4464,4444,4804,6054,665

5,4485,5315,571(8)

1,4611,4561,479()

361348

2,1212,1162,118(8)

1,5311,5971,626(8)

583595751651634643442427420

195364396286216198138126128

168126179195209201149145138

20135101142187216138142140

2,463953

1,0301,2431,410950973838731

1,257758716

1,0781,173761787668555

2516155295141433239

C8)

664108195117159123119115115

2912564202925252422

7,6853,7523,1102,8932,7852,752?775

733736

2,1451,044820793753733220209215)

533251170149140129707071

2,7751,3401,1241,0571,0481,066242228221

2,2311,117996894843824243226229

3,1912,3722,2732,2842,4052,5472,7162,7492,828

()

169157139140144141121124130

,131,090,094,124

1,1761,2301,2491,284

()

1,4621,0551,0261,0351,1231,2191,3531,3631,402

(8)

7143301559885701259958

32216263424229997741

25899553423.27201712

11,5154,8574,7085,0066,0416,9962,7282,6712,796(8)

2,595937

1,0241,0961,5271,811436427440

535237202249402426625759

3,6791,6781,6711,8512,2312,6101,0811,0661,116(8)

4,7052,0051,8101,8101,8812,1491,1491,1211,180(8)

9,78411, 92816,12217, 81019, 64017, 79418,86319,04819, 46219, 605

2,0913,7094,6024,9855,4254,6405,0725,3225,7005,928

309610

1,0491,3921,4671,2661,4301,4201,5071,487

2,9444,0115,7156,4327,0006,2116,691

6,7516,752

4,4393,5984,7565,0025,7475,6775,6695,6185,5045,437

4,5283,2973,2623,3643,8683,3763,1923,1423,1313,030

758680632653790704698714736708

100103124121176171179168

1,128930978977

1,102921866

856

2,5461,5491,5521,6331,8511,6301,4531,3971,3511,297

1 Classifications indicated were revised as of Dec. 31, 1938; for explanation see BULLETIN for January 1939, pp. 22-23, and the April BULLETIN,pp. 259-264. Beginning June 30, 1939, detailed classifications available on June and December dates only.

2 Not reported separately prior to December 1938 except for weekly reporting banks in leading cities.3 Figures in this column prior to Dec. 31,1938, represent all loans on securities, regardless of purpose, excepting only loans on securities to banks

and to brokers and dealers.4 This is a residual item and because of the revised loan classifications figures beginning Dec. 31, 1938, are not comparable with earlier figures.6 Includes obligations of territorial and insular possessions when reported separately.6 Includes Treasury certificates of indebtedness.7 For estimated figures for Dec. 31,1938, on basis comparable with earlier figures see p. 332 of the April BULLETIN.8 Not reported separately.9 Central reserve city banks.Back figures.—See Annual Report for 1937 (tables 52-58).



CONDITION OF ALL MEMBER BANKS—Continued[In millions of dollars]

Call date

TOTAL—ALL MEMBERBANKS

1929—Dec. 31__1933—June 30_.1934—Dec. 31__1935—Dec. 31__1936—Dec. 31__1937—Dec. 31__1938—Dec. 31_.1939—Mar. 29..

June 30—Oct. 2___.

NEW YORK CITY &

1929—Dec. 31._1933—June 30._1934—Dec. 31._1935—Dec. 31_.1936—Dec. 31_.1937—Dec. 31. _1938—Dec. 31_.1939—Mar. 29..

June 30—Oct. 2....

CITY OF CHICAGO 6

1929—Dec. 31..1933—June 30..1934—Dec. 31__1935—Dec. 31_.1936—Dec. 31_.1937—Dec. 31__1938—Dec. 31__1939—Mar. 29..

June 30__Oct. 2....

RESERVE CITY BANKS

1929— Dec. 31_.1933—June 30.1934—Dec. 31_.1935—Dec. 31__1936—Dec. 31__1937—Dec. 31__1938—Dec. 31__1939—Mar. 29..

June 30—Oct. 2....

COUNTRY BANKS

1929—Dec. 31_.1933—June 30..1934—Dec. 31_.1935—Dec. 31 . .1936—Dec. 31__1937—Dec. 31__1938—Dec. 31 . .1939—Mar. 29..

June 30—Oct. 2_...

Re-serveswithFed-eralRe-

servebanks

2,3742,2354,0825,5736,5727,0058,6949,11210,01111, 617

827846

1,5762,5412,6582,7384,1044,5824,9755,929

232415511558596884705897

751705

1,2681,5942,1082,3102,3542,4592,7353,053

627452822927

1,2471,3611,3531,3671,4031,555

Cashin

vault

558

665697589746777712774

156122207256285200321342318323

321203275305319307322350307329

Bal-anceswithdo-

mesticbanks

2,1682,0083,1493,7764,0663,4144,2404,4034,674

65, 304

179101103111133120109156112

6109

133203207209188179235178235

6237

9471,0021,5431,7791,8161,4701,9402,1062,210

62, 485

7021,2961,6761,9291,6451,9561, 9632,117«2,473

De-mand

de-posits

ad-justed

16, 64712, 08915,68618,80121, 64720,38722,29322, 36423, 58725,118

4,7504,3585,0696,1936,9296,1117,1687,6058,0128,676

957912

1,1891,4011,5541,4381,6881,2501,6661,747

5,2293,7645,1366,1617,1266,8707,2147,3267,6548,017

5,7113,0544,2925,0476,0395,9686,2246,1836,2556,677

Demand deposits,except interbank

Indi-vid-uals,part-ner-

ships,andcor-

pora-tions

17, 52611,83014,95118,03520, 97019,74721,11920,84522,44823,983

5,8474,6765,3706,4797,2746,5077,2737,6778,2818,812

1,041870

1,0731,3011,4951,3541,5971,1821,5651,632

5,5473,7084,9196,0017,0236,7437,0346,8997,3317,803

5,0912,5763,5894,2545,1775,1435,2155,0875,2725,736

Statesand

polit-icalsub-divi-sions

1,3351,0871,7992,1392,3292,1322,3862,4672,5322,390

12896229323285189280260288321

4287182208191207181141197195

423349585707843777796889917801

742555804901

1,011959

1,1281,1761,1301,073

Certi-fiedandoffi-cers'

checksetc.3

1,681657838882881767547533790666

1,180461540524457404195272472349

300108169204230192170123160158

72106127167149154114135131

U. S.Gov-ern-

ment4

143806

1,636844882781790775694675

203327922242253821391358472

76312620385407256424420415410

3911617813717878143137136133

Time deposits,except interbank


andcor-

pora-tions

12,2677,8039,0209,680

10,42910,80610,84610,94011,06311,104

1,112671591591679696652655653683

358381413449445452452471

4,4332,9413,4943,7964,0264,1614,2334,2764,3204,319

6,3903,8334,5544,8795,2755,5045,5095,5575,6195,632

Statesand


595300294361296482462461441418

371208206266203266269243233

1338684

158147153145148

Postalsav-ings4

122788452218104956168

1811056

388186793534172219

61285210136696144464035

Interbankdeposits

Domesticbanks

De-mand

3,5173,0574,S

6,4025,4366,5106,8167,09758, 243

1,1981,2551,7982,3382,4932,1082,6872,7312,992

63, 568

310259445522599528658834746

6853

1,6041,3151,9842,4222,8262,3892,7192,8132,920

83, 307

4052283424154834124464384396515

Time

95891341611531291321331426142

30591171341371071081081156116

716161621232526626

For-eignbanks

1461544494384645116296076757

597128133414397423442553524

6670

332245691012614

641518293434576469

871

Bor-row-

87919113615126755

179

12

29216

3671671363126554

ac-counts

6,7094,8375,0545,1455,2755,3715,4245,4675,4965,530

2,1051,5821,5651,5731,5851,6061,5931,6921,5861,587

316204226229244255257261270270

2,0291,5331,6141,6571,6971,7351,7771,7951,8121,821

2,2581,5171,6501,6871,7501,7751,7981,8181,8281,852

1 Prior to Dec. 31,1935, excludes balances with private banks to the extent that they were then reported in "Other assets." Since Oct. 25, 1933,includes time balances with domestic banks which on that date amounted to $69,000,000 and which prior to that time were reported in "Other assets".

2 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31,1935,less cash items reported on hand but not in process of collection.

3 Includes "Due to Federal Reserve banks (transit account)," known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31, 1935.4 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.6 Central reserve city banks.6 Partly estimated.Back figures—See Annual Report for 1937 (tables 52-58).



CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES[Monthly data are averages of Wednesday figures. In millions of dollars]

Date or Month

Totalloansandin-

vest-ments

TOTAL—101 CITIES

1938—October1939—April

MayJuneJulyAugust.SeptemberOctober

1939—Aug. 3O._Sept. 6__Sept. 13.Sept. 20.Sept. 27.Oct. 4___Oct. 11_.Oct. 18...Oct. 25__Nov. 1—Nov. 8...Nov. 15..

NEW YORK CITY


MayJuneJulyAugust. _SeptemberOctober

1939—Aug. 30..Sept. 6__Sept. 13.Sept. 20.Sept. 27.Oct. 4 - _Oct. 11__Oct. 18__Oct 25__Nov 1...Nov 8...Nov 15..

OUTSIDE N E W

YORK CITY

1938—October1939-April

May ___JuneJuly _ ._ .AugustSeptemberOctober

1939—Aug. 30..Sept. 6...Sept. 13.Sept. 20.Sept. 27.Oct. 4___.Oct. 11__.Oct. 18...Oct 25._Nov. 1...Nov. 8...Nov. 15..

21,32321, 72721, 69321,88722,04622,32722,38422, 571

22,44222,38922, 38922, 33922,41922, 49822, 56822, 56322, 65722, 72822,83523,014

7,8098,0107,9588,1038,1388,3498,3938,538

8,3798,3418,3618,3938,4778,5258,5088,5078,6148,6798,7718,858

13, 51413,71713, 73513, 78413,90813, 97813, 99114,033

14.06314, 04814,02813, 94613, 94213, 97314,06014,05614,04314,04914.06414,156

Loans

Total

8,2828,1278,0918,0948,1468,1798,3228,421

8,2098,3058,3158,3198,3508,3758,4088,4238,4798,5218,5218,549

2,9352,7952,7592,7582,7652,8282,8692,895

2,8562,8922,8582,8562,8712,8752,8812,8912,9362,9552,9392,943

5,3475,3325,3325,3365,3815,3515,4535,526

5,3535,4135,4575,4635,4795,5005,5275,5325,5435,5665,5825,606

Com-mer-cial,in-

dus-trial,andagri-cul-tural

3,9043,8483,8393,8303,8883,9304,1664,279

3,9964,0754,1594,2014,2294,2514,2884,2864,2924,3104,3304,362

1,4471,3791,3721,3751,4081,4831,6201,661

1,5451,5731,6151,6401,6521,6551,6651,6621,6631,6721,6741,682

2,4572,4692,4672,4552,4802,4472,5462,618

2,4512,5022,5442,5612,5772,5962,6232,6242,6292,6382,6562,680

Openmar-ket

paper

346305303304312313316317

317314318315316318318316318317316312

142117120121120117116115

120115115115117117116113115117115110

204188183183192196200202

197199203200199201202203203200201202


Tobrok-ersanddeal-ers

697678671648642568552

640568532533538530548593603594588

528555529523497493435430

467499430405406412411430467472467463

141142149148151149133122

141141138127127126119118126131127125

Toothers

576537539541532521511505

519512513510510505504501510512500497

197195198201191184177173

183176178178177173171170179180170168

379342341340341337334332

336336335332333332333331331332330329

Realestateloans

1,1631,1441,1511,1591,1631,1711,1781,181

1,1741,1741,1781,1801,1801,1791,1821,1811,1801,1841,1841,187

119110111113115117117116

118118118117117117117114114114114115

1,0441,0341,0401,0461,0481,0541,0611,065

1,0561,0561,0601,0631,0631,0621,0651,0671,0661,0701,0701,072

Loansto

banks

10969585264623835

494634353536373632363739

Otherloans

1,5151,5271,5231,5371,5391,5401,5451,552

1,5461,5441,5451,5461,5471,5481,5491,5551,5541,5591,5601,564

413383385386380382377375

384378377376377375374377375376373376

1,1021,1441, i381,1511,1591,1581,1681,177

1,1621,1661,1681,1701,1701,1731,1751,1781,1791,1831,1871,188

Investments

Total

,041.3,600:3,6023,793.3,90014,1484, 062.4,150

.4,233A, 084A, 0744,020A, 069L4,1234,160L4,140L4,17814,20714,314.4, 465

4,8745,2155,1995,3455,3735,5215,5245,643

5,5235,4495,5035,5375,6065,6505,6275,6165,6785,7245,8325,915

8,1678,3858,4038,4488,5278,6278,5388,507

8,7108,6358,571

8,4638,4738,5338,5248,5008,4838,4828,550

U. S. Government obligations

Direct

Total

8,0848,2258,2968,3838,4998,5378,4678,566

8,5658,5128,4898,4288,4378,5038,5598,5748,6288,6848,7208,725

2,9022,9463,0243,1393,1743,1973,1963,314

3,1553,1473,1913,2173,2283,2803,2853,3053,3853,4583,5083,517

5,1825,2795,2725,2445,3255,3405,2715,252

5,4105,3655,2985,2115,2095,2235,2745,2695,2435,2265,2125,208

Bills i

342398422461488450561

502468475437419492553571629667702720

146170168146205233358

194189226261255320342358411462515541

196228254315283217203

308279249176164172211213218205187179

Motes i Bonds1

2,0112,0332,1062,1322,1492,1442,132

2,1602,1542,1532,1312,1372,1302,1282,1262,1452,1592,1692,179

741727808821826801788

825816812789787786776776814835844

1,2701,3061,2981,3111,3231,3431,344

1,3351,3381,3411,3421,3501,3441,3521,3501,3311,3241,3251,333

5,8725,8655,8555,9065,9005,8735,873

5,9035,8905,8615,8605,8815,8815,8785, 8775,8545,8585,8495,826

2,0592,1272,1632,2072,1662,1622,168

2,1362,1422,1532,1672,1862,1742,1672,1712,1602,1612,1492,130

3,8133,7383,6923,6993,7343,7113,705

3,7673,7483,708

3,6953,7073,7113,7063,6943,6973,7003,696

Guar-an-teed

Othersecu-rities

1,6822,0332,0332,1192,1582,2652,2262,232

2,2862,2192,2222,2302,2322,2402,2402,2242,2262,2322,2502,402

8031,0451,0341,0601,0981,1371,1051,123

1,1471,0931,0981,1071,1201,1281,1251,1201,1191,1211,1321,213

879

1,0591,0601,1281,1211,109

1,1391,1261,1241,1231,1121,1121,1151,1041,1071,1111,1181,189

3,2753,3423,2733,2913,2433,3463,3693,352

3,3823,3533,3633,3623,4003,3803,361:, 342

3,3243,2913,3443,338

1,1691,2241,1411,1461,1011,1871,2231,206

1,2211,2091,2141,2131,2581,2421,2171,1911,1741,1451,1921,185

2,1062,1182,1322,1452,1422,1592,1462,146

2,1612,1442,1492,1492,1422,1382,1442,1512,1502,1462,1522,153

i Not reported separately prior to February 8, 1939.NOTE.—For description of figures see BULLETIN for November 1935 (pp. 711-738) or reprint, which may be obtained from the Division of

Research and Statistics, and BULLETIN for June 1937 (pp. 530-531). For back figures see BULLETIN for November 1935 (pp. 711-738) or reprint,BULLETIN for December 1935 (p. 876), Annual Report for 1937 (tables 65-67) and corresponding tables in previous Annual Reports.



CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued[Monthly data are averages of Wednesday figures. In millions of dollars.]

Date or month

TOTAL—101 CITIES


MayJuneJulyAugustSeptember-October

1939—Aug. 30..Sept. 6...Sept. 13..Sept. 20..Sept. 27..Oct. 4 . . .Oct. 1 1 . .Oct. 18 . .Oct. 25...Nov. 1...

' Nov. 8...Nov. 15..

NEW YORK CITY


May ___JuneJulyAugustSeptember..O t b

1939—Aug.SeptSeptSeptSeptOct.Oct.Oct.Oct.NovNov,Nov

30. 6 __. 13. 20 . . __. 2741118 ._25

. 8

. 15. . . . _._

OUTSIDENEW YORK CITY

1938—October.... .1939—April

MayJuneJulyAugustSeptemberOctober

1939—Aug. 30Sept. 6Sept. 13Sept. 20Sept. 27Oct. 4Oct. 11Oct. 18Oct. 25Nov. 1Nov. 8Nov. 15


servebanks

7,0057,9738,3618,4608,6458,9519,6439,957

9,2479,3689,6869,7239,7949,8269,87910,02810,0949,8859,8529,698

3,7544,6514,8954,8664,9955,1845,6315,701

5,4995,5475,6995,6365,6405,6515,6675,7255,7615,5605,4865,449

3,2513,3223,4663,5943,6503,7674,0124,256

3,7483,8213,9874,0874,1544,1754,2124,3034,3334,3254,3664,249

Cashin

vault

425424423447448440477482

465463489470486471489480487458500475

364368367380383377399402

394386410394406393403403409384415399

Bal-anceswithdo-

mesticbanks

2,4462,5962,6442,7272,765

2,9513,062

2,7892,8132,9503,0213,0183,0343,0373,0873,0903,1113,0893,166

2,3702,5142,5672,6512,6882,7342,8792,989

2,7172,7412,8782,9472,9452,9602,9663,0123,0183,0393,0183,086

De-mand

de-posits

ad-justed

15, 68816,45516, 79617,18217,36617, 71718, 2098, 511

18,09618,04018, 28818,17518, 33318,30618,45118,56718, 72118, 55618, 66018, 604

6,6137,2877,4677,6087,6607,9058,1528,259

8,1958,1518,1958,0918,1708,2108,2148,2568,3568,2128,2658,256

9,0759,1689,3299,5749,7069,81210,05710, 252

9,9019,88910,09310,08410,16310,09610, 23710,31110, 36510, 34410, 39510, 348



ships,andcor-

pora-tions

Statesand


16,16,00016,25916,63317,00817,16817,90418, 277

17,47917, 59918,10217,92617,98817, 92618,29618,43318,45318, 27318,18418, 520

1,3721,4521,4701,3171,4361,3311,302

1,4471,3661,3591,2661,3341,3281,3121,2481,3201,4601,4811,431

7,3487,4957,6367,7737,9138,2688,394

8,1748,2288,3478,2278,2718,2258,3778,4468,5268,3658,2998,393

8,6528,7648,9979,2359,2559,6369,883

9,3059,3719,7559,6999,7179,701

9,9279,9089,88510,127

6,972257304280225304249240

257269214257272239210237330328317

6941,1151,1481,1901,0921,1321,0821,062

1,1391,1091,0901,0521,0771,0561,0731,0381,0831,1301,1531,114

Certi-fiedandoffi-cers':hecks,

etc.

428441419406438448411

394512496391394392357440456510415407

328268274269231274278240

230341319223230220198256285315256231

165160167150175164170171

164171177168164172159184171195159176

U. S.Gov-ern-

ments

563620581545541532528526

528528526528528528526525526525523521

141110856059514949

422510496485482481479477

480479478479480479477476478476474473



ships,andcor-

pora-tions

Statesand


5,1524,9744,9844,9965,0065,0215,0165,040

5,0175,0165,0185,0135,0185,0285,0325,0435,0575,0635,0675,070

583578580589597601615

596597604599603609611616625628629630

235251229216220210197

224215210207207203205190190181178182

4,3914,4064,4164,4174,4244,4154,425

4,4214,4194,4144,4144,4154,4194,4214,4274,4324,4354,4384,440

4,531192209188172170165156

173166167164163158159153153143141142

Postalsav-ings2

18

Interbankdeposits

Domesticbanks

De-mand

6,0126,4736,5306,6076,7636,9917,4477,722

7,0407,2197,4597,5667,5457,7117,6877,7607,7297,8327,8297,997

2,5492,7852,8142,8452,9283,0523,3003,381

3,1123,1793,3083,3593,3543,3,3723,3773,3863,4393,4153,465

3,463

3,7163,7623,8353,9394,1474,341

3,9284,0404,1514,2074,1914,3224,3154,3834,3434,3934,4144,532

Time

110116118121127127126123

127127127126122123124123123122123122

110116118121127127126122

127127127126122123123122122121122121

For-eign

banks

479638639606620652732793

683712720742753762791797820727721711

424561560529540575657702

613638649666672675698707729651648645

Bor-row-ings.

Cap-italac-

count s

3,6633,6953,7123,7213,7163,7223,7163,719

3,7243,7263,7143,7123,7123,7143,7193,7203,7223,7283,7333,731

1,4821,4831,4881,4881,4791,4821,4751,475

1,4811,4791,4751,4731,4741,4761,4751,4751,4761,4801,4801,479

2,1812,2122,2242,2332,2372,2402,2412,244

2,2432,2472, 2392,2302,2382,2382,2442,2452,2462,2482,2532,252

1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection.* U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.



CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued[In millions of dollars]

Federal Reservedistrict and date

(1939)

BOSTON (6 cities)October 25 _____ _ -November 1November 8November 15NEW YORK (8 cities)*

October 25 _ ._ _November 1 __November 8November 15PHILADELPHIA (4 cities)October 25November 1November 8November 15CLEVELAND (10 cities)

October 25 _ _ _November 1November 8November 15

RICHMOND (12 cities)October 25November 1November 8November 15

ATLANTA (8 cities)October 25 _November 1November 8November 15

CHICAGO (12 cities)*October 25November 1November 8November 15

ST. LOUIS (5 cities)October 25November 1 _ _ _ _November 8November 15MINNEAPOLIS (8 cities)October 25

November 8November 15KANSAS CITY (12 cities)October 25 _ _November 1November 8November 15 _

DALLAS (9 cities)October 25November 1November 8November 15SAN FRANCISCO (7 cities)October 25___November 1November 8November 15

CITY OF CHICAGO*

October 25November 1November 8 _November 15

Totalloansandin-

vest-ments

1,1931,1921,1921,192

9,4679,5309, 6259,717

1,1501 1531,1571,163

1,8841,8811,8881,902

685688691698

610615616622

3,1553,1483,1423,155

697696697704

405409409412

660665669678

534538537541

2,2162,2132,2122,230

2,0902,0862,0802,087

Loans

Total

602605605604

3,2943,3123,2953,299

423423425426

678677677679

259260261260

305308310 1312

880884896904

332335336338

189193194195

284286287290

270273274275

963965961967

558561570576

Com-mer-cial,in-

dus-trial,andagri-cul-tural

287287289291

1,7771,7861,7871,796

198198198199

258253253254

116117117117

165168167172

515519534539

200203203204

101103105106

174175176178

180182183184

321319318322

379383395399

Openmar-ket

paper

64656363

121123121115

26252525

6666

13131414

4454

34333334

8788

3333

17161617

2222

20202021

19181818


Tobrok-

ersanddeal-ers

23262422

471476471467

19202121

20202020

3232

4454

31312830

4444

1111

3333

2222

12141212

28272526

Toothers

21212121

237237227225

31313131

25262626

15151515

12121011

76777776

13131313

8887

9101010

14141414

49484848

66676767

Realestateloans

81818181

201201201202

55555555

172173173174

39393939

31323232

109109109110

52525252

9999

26262626

22222222

383385385385

14141414

Loansto

banks

1111

23242629

1111

2332

1

1111

3333

1111

111

Otherloans

125124126125

464465462465

93939494

195196196197

73737373

88879088

115115115115

52535354

67696869

54555555

50515151

178178177178

52525152

Investments

Total

591587587588

6,1736,2186,3306,418

727730732737

1,2061,2041,2111,223

427428430438

305307306310

2,2752,2642,2462,251

365361361366

216216215217

376379382388

264265263266

1,2531,2481,2511,263

1,5321,5251,5101,511

U. S. Government obligations

Direct

Total

415412412414

3,6283,6993,7493,756

362362362364

810809814818

312313314317

142143143144

1,5001,4901,4671,450

201195195196

146145146146

193195198199

155157155156

764764765765

1,0481,0401,0191,004

Bills

19192022

411462515541

129

1011

4444

8899

13312710692

8333

11131315

23222223

12912310289

Notes

56555556

876894903905

38383839

211211212213

181182184186

38383740

437434433432

54545455

33333232

87838483

50535354

84848484

250250250249

Bonds

340338337336

2,3412,3432,3312,310

324324324325

587589592594

127127126127

96979795

930929928926

139138138138

113112114114

9599

101101

82828079

680680681681

669667667666

Guar-an-teed

45454450

1,2051,2081 2201,308

92949599

115116118126

48484955

66686770

287288292309

65676770

26262628

52525257

52505052

173170170178

154156158170

Othersecur-ities

131130131124

1,3401,3111 3611,354

273274275274

281279279279

67676766

97969696

488486487492

999999

100

44454343

131132132132

57585858

316314316320

330329333337

* Separate figures for New York City are shown in the immediately preceding table, and for the city of Chicago in this table. The figures forthe New York and Chicago districts, as shown in this table, include New York City and Chicago, respectively.



CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued[In millions of dollars]

Federal Reservedistrict and date

(1939)

BOSTON (6 cities)October 25November 1November 8. _November 15

NEW YORK (8 cities)*October 25November 1 _November 8November 15PHILADELPHIA (4 cities)October 25November 1__ _November 8November 15CLEVELAND (10 cities)

October 25 .November 1November 8November 15

RICHMOND (12 cities)October 25November 1 __November 8November 15

ATLANTA (8 cities)October 25November 1November 8November 15

CHICAGO (12 cities)*October 25 . . .November 1November 8 ._November 15 __ _

ST. LOUIS (5 cities)October 25November 1_November 8November 15MINNEAPOLIS (8 cities)

October 25November 1__ _November 8November 15. ._ _KANSAS CITY (12 cities)October 25November 1November 8_ . .November 15 _ _

DALLAS (9 cities)October 25, .November 1_ . _November 8November 15 _ __SAN FRANCISCO (7 cities)October 25November 1_November 8November 15

CITY OF CHICAGO*October 25November 1November 8November 15


servebanks

494490484458

5,9035,6925,6225 579

420423448431

519535520512

187185196185

124119125120

1,4241,4141,4171,386

214220231224

9799

10197

196189186189

134133140135

382386382382

1,1281,1271,1331,103

Cashin

vault

144141144143

9792

10695

19172019

46434645

23202320

14121412

74717574

12111311

7677

16141615

12101211

23212423

41404242

Bal-anceswithdo-

mesticbanks

160164168173

192199201214

218220220225

354357352362

211218216217

208206206210

545546538552

184187189190

109117120116

344336331340

271277270285

294284278282

246247242243

De-mand

de-posits

ad-justed1

1,1951,1961,2011,180

8,9668,8308,9058,893

920925956940

1,3041,3141,3121,310

485478489481

391387391388

2,6392,6112,5982,585

476474485479

303308309307

541532527531

464464462469

1.037

]

L, 037,025,041

,826L, 818L, 811, 7 9 2



ships,andcor-

pora-tions

1,1321,1281,1161,128

9,0148,8618,7948 888

934942946945

1,2521,2771,2631,297

483480490497

374373374390

2,4742,4502,4352,501

500493498511

270269271279

530524522548

452445444464

1,0381,0311,0311,072

1,7291,7201,7121,746

Statesand


112134134115

379479494485

46477573

119120120115

41434038

61616160

305298288279

31323334

57646060

65666059

42485148

62686565

187183179172

Certi-fiedandoffi-cers'

checks,etc.

19211724

304336273250

9126

10

17191518

10129

12

4554

39413634

6766

7766

10101011

101199

21292323

23232018

U.S.Gov-ern-

ment2

13131313

67676867

52525252

42424242

28282828

41393939

105105104104

18181717

1221

22222222

30303030

107107106106

60606060



ships,andcor-

pora-tions

234233233233

992995997998

272272273273

710711710711

198199198198

181181182182

917919921922

188188188188

119119119119

142142142142

128128128128

976976976976

479480480481

Statesand


3333

49474548

8888

19181818

3333

7777

22222222

3333

3333

8878

65595959

20202020

Postalsav-

ings 2

1111

1111

2222

2222

6666

2222

1111

1111

11

3333

Interbankdeposits

Domesticbanks

De-mand

324331329333

3,4613,5143,4903,543

393399399409

400402394411

295305308314

273274277284

1,1371,1481,1511,186

336345350356

142147152150

418415417434

261267273279

289285289298

867871874898

Time

17171717

12121212

39393939

6666

3333

109

109

6666

3333

7777

20202020

For-eign

banks

36272419

730653649647

13887

1112

1111

1122

17131312

1

1111

20222120

16121210

Bor-row-ings

1

11

Cap-italac-

counts

245246246246

1 5981,6021,6031 602

223222222222

373374374374

97969797

94949494

405408409408

95959595

59595959

102102102102

86868787

345344345345

266269269269

* See note on preceding page.1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection.2 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.



COMMERCIAL PAPER, ACCEPTANCES, AND BROKERS' BALANCES

COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING[In millions of dollars]

End of month

1938—SeptemberOctober _NovemberDecember

1939—January --FebruaryMarchAprilMayJune - -JulyAugustSeptember _October

Com-mer-cial

paperout-

stand-ing i

212213206187

195195191192189181194201209205

Dollar acceptances outstanding

Totalout-

stand-ing

261270273270

255248245238247245236235216221

By holders

Held

Total

221223222212

204198191189192191188191177179

by acceptingbanks

Ownbills

129130124121

122122117118124122119128115111

Billsbought

92939891

82767472686969636267

Held byReserve

Forown ac-count

Federalbanks

For ac-count offoreigncorre-spond-

ents

(2)(2)

(2)

Heldby

others

40465158

52505449555348443942

By classes

onim

portsintoU. S.

89949495

89878786828175797885

Basedon ex-portsfromU. S.

57575960

57575856514541404040

Dollarex-

change

2333

2221

192019181818

Based on goodsstored in or shippedbetween points in

U.S.

56595957

52484238363939404346

Foreigncoun-tries

57565756

55545657596061593632

i As reported by dealers; includes some finance company paper sold in open market.a Less than $500,000.Back figures—See Annual Report for 1937 (table 70).

CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OFSTOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS[Member firms of New York Stock Exchange. Ledger balances in millions of dollars]

End of month

1937—MarchJuneSeptemberDecember

1938—March .JuneSeptemberOctoberNovemberDecember

1939—January _.FebruaryMarchAprilMayJune --JulyAugustSeptember ___ __ __ _October _

Debit balances

Customers'debit

balances(net) i

1,5491,4891,363

985

831774823905939991

971967953831828834839792856894

Debitbalances inpartners'

investmentand trading

accounts

61554834

292729323032

34292726262524222021

Debitbalances in

firminvestmentand trading

accounts

175161128108

9588768578

106

75838483767384716472

Cash onhand

and inbanks

223214239232

215215213196189190

192168174190183178183202217200

Credit balances

Moneybor-

rowed 2

1,1721,2171,088

688

576495559617662754

713709699579561570589556520577

Customers'credit balances i

Free

346266256278

239258257270252247

235222225236230230238235305289

Other(net)

115929685

818968736560

60625960697067588776

Other credit balances

Inpartners'invest-

ment andtrading

accounts

29252626

252220202022

22202020212120202221

Infirm

invest-ment andtrading

accounts

18131210

9117885

125976666

119

Incapital

accounts(net)

419397385355

315298300304303305

298294294290284280278275283284

1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and^ (2) offirms' own partners.

2 Includes both money borrowed from banks and trust companies in New York City and elsewhere in the United States and also money bor-rowed from other lenders (not including member firms of national securities exchanges).

NOTE.—For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the methodby which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last columnis not to be taken as representing the actual net capital of the reporting firms.

Back figures.—See BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69).



FEDERAL RESERVE BANK DISCOUNT RATES[Per cent per annum]

Federal Reserve Bank

Rediscounts and advances under sections13 and 13a of the Federal Reserve Act

except last paragraph of Section 13

Secured by direct andeligible guaranteed ob-ligations of the U . S .

RateNov.

Ineffect

beginning-

All other

RateNov.

28

Ineffect

beginning-

Advances under Sec-tion 10 (b) of the

Federal Reserve Act

RateNov.

28

Ineffect

beginning-

Advances secured by direct obligationsof the United States (last paragraph ofSection 13 of the Federal Reserve Act)

To banks

RateNov.

28

Ineffect

beginning-

To others

RateNov.

28

Ineffect

beginning-

BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis-Kansas C i t y -DallasSan Francisco

11IKllIK

Sept.Aug.Sept.MayAug.Sept.Sept.Sept.Aug.Sept.Sept.Sept.

1, 193927, 19374, 193711, 193527, 193716, 19391, 1939

21, 193924, 193716, 193916, 19393, 1937

VAVAIKVAIKIKVA

Sept.Aug.Sept.MayAug.Aug.Aug.Sept.Aug.Sept.Aug.Sept.

1, 193927, 19374, 193711, 193527, 193721, 193721, 19372, 1937

24, 19373, 1937

31, 19373, 1937

Sept.Oct.Sept.Oct.Sept.Aug.Aug.Sept.Aug.Sept.Aug.Sept.

2, 193710, 19354, 193719, 193510, 193721, 193721, 19372, 193724, 19373, 193731, 193717, 1937

11

1 WiIKll

IK

Sept.Aug.Sept.Sept.Sept.Sept.Sept.Sept.Sept.Sept.Sept.Sept.

1, 193925, 19391, 19391, 19391, 1939

16, 19391, 1939

16, 19391, 1939

16, 193916, 19391, 1939

Apr. 29, 1938Feb. 8, 1934Sept. 1, 1939May 11, 1935Feb. 19, 1934Apr. 23, 1938Oct. 16, 1933Feb. 23, 1935Oct. 8, 1938Apr. 16, 1938Apr. 16, 1938Oct. 19, 1933

i 2% per cent to lenders other than banks.NOTE.—Rates applicable to United States Government securities' repurchase agreements are as follows: New York, 1 per cent; Cleveland,

Kansas City, and Dallas, VA per cent.Back figures.—See Annual Report for 1937 (table 40).

FEDERAL RESERVE BANKBUYING RATES ON ACCEPTANCES

[Per cent per annum]

Maturity

1-15 days i__16-30 days___31-45 days. . .46-60 days___61-90 days. . .91-120 days..121-180 days.

Rate ineffect onNov. 28

In effect be-ginning—

Oct. 20, 1933__.do__.do_._do . . .— d o___do___do _ -

Previousrate

i This rate also applies to acceptances bought under repurchase agree-ments, which agreements are always for a period of 15 days or less.

NOTE.—Minimum buying rates at the Federal Reserve Bank ofNew York on prime bankers' acceptances payable in dollars; higherrates may be charged for other classes of bills. The same minimumrates apply to purchases, if any, made by other Federal Reserve banks.

Back figures.—See Annual Report for 1937 (table 41).

MAXIMUM RATES ON TIME DEPOSITSMaximum rates that may be paid by member banks as established by

the Board of Governors under provisions of Regulation Q.


Savings depositsPostal Savings depositsOther time deposits pay-

able in:6 months or more90 days to 6 monthsLess than 90 days

Nov. 1, 1933to

Jan. 31, 1935

Feb. 1, 1935to

Dec. 31, 1935

In effectbeginning

Jan. 1, 1936

NOTE.—Maximum rates that may be paid by insured nonmemberbanks as established by the Federal Deposit Insurance Corporation,effective February 1, 1936, are the same as those in effect for memberbanks. In some States the maximum rates established by the Boardand the Federal Deposit Insurance Corporation are superseded bylower maximum rates established by State authority.

FEDERAL RESERVE BANKRATES ON INDUSTRIAL ADVANCES

Rates in effect, Nov- 28, 1939, on advances and commitments underSec. 13b, of the Federal Reserve Act as amended June 19, 1934.

[Per cent per annum except as otherwise specified]

Federal Reserve Bank

BostonNew YorkPhiladelphia-Cleveland

RichmondAtlantaChicagoSt. Louis

Minneapolis..Kansas City—DallasSan Francisco

Advancesdirect to

industrialor com-

mercial or-ganizations

3^-64-64-6

5-65-6

64-65-65-6

Advances to financ-ing institutions—

On por-tion forwhich

institu-tion is

obligated

0)

4-6

44

3-4

On re-mainingportion

4-5

4-65

5-64

5-64-5

Commit-ments

to makeadvances

1-2H-2

1-2y2

1-2

y2

H-2

1 Authorized rate 1 per cent above prevailing discount rate.2 Same as to borrower but not less than 4 per cent.3 Flat charge.Back figures—See Annual Report for 1937 (table 40).

MEMBER BANK RESERVE REQUIREMENTS[Per cent of deposits]

Classes of depositsand banks

On net demanddeposits: *Central reserve city.Reserve cityCountry

On time deposits:All member banks__

June 21,1917-

Aug. 15,1936

Aug. 16,1936-

Feb. 28,1937

1510K

Mar. 1,1937-

Apr. 30,1937

17K12M

May 1,1937-

Apr. 15,1938

Apr. 16,1938-andafter

17K12

1 See footnote to table on p. 1102 for explanation of method of com-puting net demand deposits.



MONEY RATES AND BOND YIELDSOPEN-MARKET RATES IN NEW YORK CITY


Year,month, or

week

1936 average___1937 average. .-1938 average.__

1938— Oct.NovDec.

1939—Jan.FebMarAprilMayJuneJulyAugSeptOct

Week ending:Oct. 2 8 . . . .Nov. 4Nov. 11. . . .Nov. 18_—

Prevailing rate o n -

Primecom-

mercialpaer,4 to 6

months

.75

.95

.81

hA-zA5A

y2-%VT-Y%lA-bA

VL-*A

Vs-H5A-H

Vsr3A5A-Z45A-H

%

Primebank-

ers'accept-ances,

90days

.15

.43.44

7/l6

Via7/l6

ViaVi«ViaVieVieVieVieVieVieVie

VieVieVieVie

Stockex-

changetime

loans,QOyu

days

1.161.251.25

1J4IX134

i 1 ÎXIXIX1MIXIXIXIXIX

IXIXIXIK

Average rate o n -

Stockex-

changecallloanre-

new-als

.911.001.00

1.001.001.00

1.001.001.001.001.001.001.001.001.001.00

1.001.001.001.00

U.S . Preas-ury bills

Newissues

of-fered

Iwithinperiod1

.143

.447

.053

.023

.024

.007

.002

.004

.005

.019

.006

.006

.017

.046

.102

.028

.028

.017

.020

.018

91-daydeal-res'quo-

tation

.17

.28

.07

.05

.04

.03

.03

.03

.03

.03

.03

.03

.04

.05

.14

.05

.05

.05

.05

.05

Aver-age

yield onU. S.Treas-ury

3-to-5yearnotes

1.111.40.83

.68

.71

.67

.65

.63

.51

.50

.42

.39

.45

.481.07

.77

.65

.69

.68

.63

i Series comprises 273-day bills to October 15, 1937, bills maturingabout March 16, 1938, from October 22, to December 10,1937, and 91-daybills thereafter.

Back figures.—See Annual Report for 1937 (tables 43 and 44). Figuresfor 91-day Treasury bills available on request.

COMMERCIAL LOAN RATESAVERAGE OF RATES CHARGED CUSTOMERS BY BANKS IN

PRINCIPAL CITIES[Per cent per annum!

1934 average1935 average1936 average.1937 average _..1938 average

1938—JanuaryFebruaryMarchAprilMayJuneJuly... _AugustSeptemberOctoberNovemberDecember

1939—JanuaryFebruary

Quarterly Figures:1938—September

1939—March.. _JuneSeptember

Total19 cities

3.452.932.682.592.53

2.602.492.482.482.482.562.572.522.532.572.492.60

2.642.52

2.65

2.952.912.68

NewYorkCity

2.451.761.721.731.69

1.701.701.651.701.701.701.701.671.701.701.701.70

1.731.70

2.00

2.132.152.04

7 otherNorth-ern andEastern

cities

3.713.393.042.882.75

2.922.652.642.602.642.782.782.712.742.902.682.95

2.972.69

2.75

3.053.052.78

11 South-ern andWestern

cities

4.323.763.403.253.26

3.283.213.283.253.203.313.353.283.263.213.203.63

3.323.36

3.25

3.773.623.31

i Quarterly figures are on revised basis and are therefore not strictlycomparable with the series of annual and monthly figures. For figuresbeginning January 1928 and description of figures see pp. 963-969of the November 1939 BULLETIN.

BOND YIELDS1


Year, month , or week

N u m b e r of issues _ _ _ . _ _ _ .

1936 average . .1937 average1938 average

1938—OctoberN o v e m b e r . . __December

1939—JanuaryFebruaryMarch _ _.AprilMayJune .JulyAugustSeptember _ _October

Week ending:Oct. 28Nov. 4Nov 11Nov. 18

U. S.Treas-ury 2

2-6

2.652.682.56

2.482.502.492.472.442.342.302.172.132.162.212.652.60

2.512.522.512.47

Munic-ipal 3

15

3.073.102.91

2.822.742.752.702.702.672.752.662.632.652.753.293.08

2.852.822.742.68

Corporate4

Total

120

3.873.944.19

4.033.953.953.863.813.743.843.783.713.663.673.953.83

3.773.753.713.70

By ratings

Aaa

30

3.243.263.19

3.153.103.083.013.002.993.022.972.922.892.933.253.15

3.093.073.012.99

Aa

30

3.463.463.56

3.533.463.423.323.263.223.223.163.133.083.113.493.35

3.273.233.193.15

A

30

4.024.014.22

4.084.024.023.973.943.873.973.923.863.833.804.053.94

3.883.853.813.78

Baa

30

4.775.035.80

5.365.235.275.125.054.895.155.074.914.844.855.004.88

4.844.834.854.87

By groupsindus-

trial

40

3.503.553.50

3.433.393.403.313.293.293.353.303.233.183.213.573.43

3.343.313.263.24

Kan-road

40

4.244.345.21

4.944.834.824.704.634.464.664.604.474.424.414.584.51

4.464.464.464.45

Publicutility

40

3.883.933.87

3.733.653.633.573.523.483.513.453.423.393.403.703.57

3.513.473.433.41

1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures.2 Average of yields of all outstanding bonds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description. Figure

for week ending October 21 should be revised to 2.54.3 Standard Statistics Co.* Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa group has been reduced

from 10 to 4, the industrial Aa group from 10 to 3, the industrial A group from 10 to 8, and the railroad Aaa group from 10 to 5.Back figures.—See Annual Report for 1937 (table 80); for U. S. Treasury bonds, see pp. 1045-1046 of BULLETIN for December 1938.



BOND PRICES1 STOCK MARKET

Year, month, or date

Number of issues

1936 average1937 average.1938 average

1938—OctoberNovemberDecember ._

1939—JanuaryFebruary ___MarchAprilMayJuneJulyAugustSeptemberOctober


U. S.Treas-ury 2

2-6

103. 7101.7103.4

104.3104.0104.1104.4104.8106.0106.6108.3109.1108.9108.2101.9102.6

104.2104.0103.9104.4

Munic-ipal 3

15

110.8110.3113.7

115.2116.6116.5117.3117.3117.9116.4118.1118.6118.3116.5107.1110.7

114.6115.1116.6117.7

Corporate 3

Total

60

97.593.478.9

81.882.181.181.982.183.179.480.281.481.681.080.982.9

83.483.083.283.1

Indus-trial

20

92.290.182.9

86.886.986.086.286.487.183.884.886.286.385.885.086.4

87.187.087.087.1

Rail-road Utility

20

94.789.658.6

59.960.258.659.759.060.954.554.856.256.455.559.061.6

61.960.560.760.2

105.4100.495.3

99.398.799.7

100.7101.399.7

101.0101.6102.1101.798.6

100.5

101.1101.5101.8101.9

i Monthly data are averages of daily figures except for municipal bonds,which are averages of Wednesday figures.

a Average prices of all outstanding bonds due or callable after 12 years,based on quotations from Treasury Department; see BULLETIN forDecember 1938, pp. 1045-1046 for description. Prices expressed ndecimals.

3 Prices derived from average yields> as computed b y Standard Sta-tistics Co.

Back figures.—See Annual Report for 1937 (table 79); for U. S. Treasurybonds, see pp . 1045-1046 of BULLETIN for December 1938.

Year, month, ordate

Number of issues __

1936" average1937 average1938 average

1938—OctoberNovember . __December

1939—JanuaryFebruaryMarchAprilM a yJuneJulyAugustSeptember. __October


Stock prices 1

Pre-ferred 2

20

138.9136.2135.6

140.4142.3141.7141.7141.8142.3140.4141.8143.9143.7142.3136.2137. 7

139.4139.7139.9140.3

Common (index, 1926=100)

Total

420

11111283

91959292909282838686869295

97959494

Indus-trial

348

12713199

1101141111091061089697101101101109113

115112111110

Rail-road Utility

40

1049573

77817881848680828585878486

88878787

Vol-ume oftrad-ing 3

1,8241,5191,100

1,8891,3551,1951,114708999964548507821706

2,5951,050

1,3061,2091,157729

1 Standard Statistics Co. Monthly data are averages of Wednesdayfigures.

2 Average prices of industrial high-grade preferred stocks, adjusted to a$7 annual dividend basis.

3 Average daily volume of trading in stocks on the New York StockExchange, in thousands of shares. Weekly figures are averages for theweek ending Saturday.

Back figures—Fov stock prices,'see Annual Report for 1937 (table 79).

CAPITAL ISSUES[In millions of dollars]

Year ormonth

19291930 .19311932193319341935193619371938

1938—OctNovDec

1939—JanFebMarAprMayJuneJulyAugSeptOct

Total(newandre-

fund-ing)

11, 5137,6194,0381,7511,0632,1604,6996,2143,937

'4,446

766386

'514257561240

'357' 1 , 313

605'590'450174740

Total(r\r\(, do-

mesticandfor-

eign)

10,0936,9123,0951,197

7201,3861,4571,9722,1382,359

167226241200398162

'144117293318

'10341

336

Total

9,4206,0042,8601,165

7081,3861,4091,9492,0942,323

167196241200378162

'143117283318'8341

336

]

Stateandmu-nici-pal

1,4181,4341,235

762483803855735712971

1031521267644

1056394

25366571542

?or new capital

Domestic

Fed-eral

agen-cies »

087757764

40515022

157481

00

55118310

4220

2030

10276

Corporate

Total

8,0024,4831,551

325161178404

1,1921,225

872

644360

62453

'78'2230

'50'261618

Bondsand

notes

2,0782,9801,239

30540

144334839817807

623744

51743

'48182240

'231414

Stocks

5,9241,503

31120

1203569

352408

65

26

1617

103139

'10324

For-eign *

673908235

3212

048234435

03100

200

(*)0

100

2000

For refunding

Total(do-

mesticandfor-

eign)

1,420706944554343774

3,2424,2421,799

'2,087

599160

'27357

16378

2131,195

312'272'347133404

Total

1,387527893498283765

3,2164,1231,680

'2,060

599135

'27157

16375

1611,180

312'272'332133402

Stateandmu-nici-pal

1353218737

136365382191129

26

15271013117

3918138

10

Domestic

Fed-eral

agen-cies 2

00

519326

317987353281665

323222019171521

1,02121741851

235

Corporate

Total

1,374474821319219312

1,8643,3871,209

' 1 , 265

274108

'23510

13647

129151252

'180'301

74157

Bondsand

notes

542461789315187312

1,7823,187

856' 1 , 234

27489

'22510

10146

106131249

'143'292

74157

Stocks

8332332

4320

81200352

31

11811

(')35

(')2320

2'38

90

For-eign^

33179515660

926

11911928

025

3003

531600

1502

* Revised.i Includes issues of noncontiguous U. S. Territories and Possessions.i Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury.« Less than $500,000.Source.—For domestic issues, Commercial and Financial Chronicle; for foreign issues, U.S. Department of Commerce. Monthly figures subject

to revision.Back figures.—See Annual Report for 1937 (table 78).



TREASURY FINANCEUNITED STATES GOVERNMENT DEBTVOLUME AND KIND OF DIRECT OBLIGATIONS

[On basis of daily statements of United States Treasury. In millions of dollars]

E n d of m o n t h

1932—June1933—June1934—June1935—June . ._ . .1936—June1937—June _1938—June

1938—OctoberNovember . _.December

1939—January .FebruaryMarchAprilM a yJune . __ -JulyAugust _SeptemberOctober _ _ _

Totalgrossdebt

19,48722, 53927,05328, 70133, 77936, 42537,165

38, 42338,60339,42739, 63139, 85939,98540,06340,28240, 44040, 66140, 89140, 85841, 036

Totalinterestbearing

19,16122,15826,48027, 64532, 98935, 80036, 576

37,89738,06838,89939,09739,32639,44239, 52539, 75139, 88640,11440, 35140, 34240, 526

Total

618,816•21, 782

r626,00626, 91031, 29733, 73433,463

34, 52734, 55935, 32735,46935, 53335, 57935, 62735,68035, 71535,79835,86235,88636,026

]

Interest-bearing

Publicly-offered»

Bonds

Pre-war

753753753753797979

79797979797979797979797979

Treas-ury*

13,46013,41715,67914,01917,16819, 93621,846

22, 71222,71224,00524,00524,00525, 21825, 21825, 21825, 21825, 21825, 21825, 21825, 218

U. S.savings

62316800

1,238

1.367L,399,442

L, 580L, 643L, 701L 751l', 8061,8681,9492,0152,0512,092

Notes

1,2614,5486,653

10,02311,38110, 6179,147

9,0679,0678,4968,4968,4967,2707,2707,2707,2437,2437,2437,2327,232

Bills

616954

1,4042,0532,3542,3031,154

1,3021,3031,3061,3091,3101,3111,3091,3081,3081,3091,3071,3061,405

Ad-justedserviceissues3

10592

118156

1,071926868

826827827826825827826825839833829795791

Socialse-

curityissues4

19579

1,601

1,8071,9372,0022,0462,2072,2572,2942,4422,5112,5422,7222,7462,796

Allothers

240284356580601560644

736745743756761779780805820941938915913

Noninterest-bearing

Ma-tured

J.VJ.

606654

231169119141

94105101109112125122117142140133112109

Other

266315518825620506447

433431427425421419416414411408406404401

1 Excludes postal savings bonds, formerly sold to depositors in the Postal Savings System.2 Includes Liberty bonds.* Includes adjusted service bonds of 1945 and special issues of adjusted service bonds and of notes to Government Life Insurance Fund series

and of certificates to the adjusted service fund.* Includes special issues to old-age reserve account, unemployment trust fund, and railroad retirement account.* Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation.* Includes certificates of indebtedness not shown separately: 1932—$2,726,000,000; 1933—$2,108,000,000; 1934—$1,517,000,000.

MATURITIES OF PUBLICLY-OFFERED DIRECTOBLIGATIONS, OCTOBER 31,1939


Date maturingor callable

1939—Nov. 1-Dec. 311940—Jan. 1-Mar. 31

Apr. 1-June 30July 1-Sept 30Oct. 1-Dec. 31

194119421943 _194419451946194719481949. _1950195119521953195419551956195819591960196119631965

Total

Maturing

Total

1,4301,880

738

7372.2191,0011,948

4162,1181,8412,8201,9971,481

1,2232,4361,7862,663

755489

9822,611

50919

1,485

36,026

Bills

904501

1,405

Notes

5261,378

738

7371,3851,0011,050

416

7, 232

Bonds

U. S.Sav-ings

176323422510

2 662

2,092

Other

834

898

1,9411, 5192,3991,487

819

1,2232,4361,7862,663

755489

9822,611

50919

1,485

25, 297

Bondscall-

able *

353

1,379

1,8552,5551,7552,3721,4601,6742,2781,1862,382

2,611982919

1,48550

25, 297

i Excludes U. S. savings bonds. Other bonds in the amount of $2,577,-000,000 not callable prior to maturity are shown as of date of maturity.

2 Includes unclassified U. S. savings bonds.

FULLY

End ofMonth

1934—June..Dec...

1935—June..Dec—

1936—June..1 Dec...1937—June..

Dec.._1938—June..

1938—Oct...Nov. _Dec...

1939—Jan. _.Feb. . .Mar. _Apr...May. .June..Ju ly . .Aug...Sept. _Oct.._

GUARANTEED OBLIGATIONS, BY AGENCIES i


Total

6813,0634,1234,4944,7184,6624,6654,6454,853

5,0014,9934,9924,9875,4105,4105,4105,4095,4505,4805,5835, 4565,448

FederalFarm

MortgageCorpora-

tion

312980

1,2261,3871,4221,4221,4221,4101,410

1,3951.388,388,383,3811,381,380,379.379

1,3791,3791,2791,279

HomeOwners'

LoanCorpora-

tion 2

1341,8342,6472,8553,0442,9882,9872,9372,937

2,8882,8882,8882,8882,8882,8882,8882,8882,9282,9582,8582,8312,823

Recon-structionFinanceCorpora-

tion

235249250252252252255297299

511511509509819819819820820820820820820

Com-modityCredit

Corpora-tion

206

206206206206206206206206206206409409409

U. S.Hous-

ingAuthor-

ity

U4114114114114114114114114

i Principal amount of obligations guaranteed as to interest and princi-pal. Excludes obligations held by U. S. Treasury and reflected in thepublic debt. The total includes guaranteed debentures of the FederalHousing Administrator, amounting to $2,933,000 on October 31, 1939.

2 Excludes obligations guaranteed as to interest only. For August 1939and subsequent months includes matured bonds not presented for retire-ment amounting to $92,000,000 on October 31.



SUMMARY OF TREASURY OPERATIONS

[On basis of daily statements of United States Treasury. In millions of dollars]

Period

Fiscal year ending:June 1937June 1938June 1939.

4 months ending:Oct. 1937Oct. 1938Oct. 1939

1938—OctoberNovember. __December

1939—January _FebruaryMarchAprilMayJuneJulyAugustSeptember. __October

General and special accounts

Receipts

Total

5,2946,2425,668

1,9831,8411,768

332382704308417737268397613308420719322

In-cometaxes

2,1582,6352,182

634618445

4136

4814856

5064043

3554237

32837

Socialsecur-

itytaxes 2

253755740

216200217

34129

343

1824

30124

2536

1192736

Otherinter-nal

reve-nue*

2,1872,2852,238

897847916

209175181173143183156187193187218312199

Allother

697567507

237176190

48414045374542423943465250

Expenditures *

Total

8,4427,6269,210

2,5182,9653,177

769678862693662870785744951807822784764

General

Inter-est ondebt

866926941

260243253

679

1733017

1206610

2721518

15168

Na-tional

de-fenseandVet-

erans'Adm.4

1,4361,5561,627

507546632

136137136140122136133136140

••145'152'147154

Allother

1,9942,1782,761

703910

250228190221209243258279223

••259'254'261305

Re-cov-eryand

relief

3,0732,2383,105

696958

262249309258254297266262252220321170175

Re-volv-ing

funds(net) e

20412192

563726

9745

1068781

1159

Trans-fers totrust

accts.,etc. 6

868607685

296271336

444949395068555056

167665053

Excessof re-ceipts(+)or

ex-pendi-tures(-)

- 3 , 1 4 9- 1 , 3 8 4- 3 , 542

- 5 3 4- 1 , 1 2 4- 1 , 4 0 9

- 4 3 7- 2 9 6- 1 5 7- 3 8 5- 2 4 5- 1 3 2- 5 1 7- 3 4 8- 3 3 9- 4 9 9- 4 0 2

- 6 5- 4 4 2

Trustac-

counts,etc7

excessof re-ceipts(+) or

ex-pendi-tures(-)

+374+306+890

+125+219- 1 1 2

- 3- 6

- 3 1+30

+428+52+93+9

+95- 1 1 3

- 4 4+46

- 1

Increase or de-crease during

period

Generalfund

balance7

- 1 2 8- 3 3 8+622

+122+353-925

-409-122+636- 1 5 1+410+46

-346-119- 8 6

- 3 9 1-216- 5 3

-264

Gross-debt

+2,646+740

+3, 275

+532+1, 258

+597

+30+180+824+204+227+127+78

+219+158+222+230-34

+178

Period

Fiscal year ending:June 1937 _June 1938June 1939

4 months ending:Oct. 1937Oct. 1938Oct. 1939

1938—OctoberNovember. _December...

1939—JanuaryFebruary.. .MarchAprilMayJuneJulyAugustSeptember. _October

Details of trust accounts, etc.

Old-age reserve andrailroad retire-ment accounts

Re-ceipts

267550639

223196234

44494939506855508565665053

In-vest-ments

267461516

194143182

34343434505050408345514343

Bene-fit

pay-ments

()85

120

Unemploymenttrust fund

Re-ceipts

294763838

190240279

1253751

1483434

1373258

1541354

In-vest-

ments

293560395

18364

103

3210

111

9 13108

9 139 14129

9 197

With-drawals

byStates

1191442

1168146

40261933364441324142414024

Net expenditures inchecking accounts ofGovernment agencies

Recon-structionFinanceCorpora-

tion

9 32999

9 658

9 20783

192118

9 159 326

969 60

39 86

16292215

Com-modi tyCredit

Corpora-tion

9 1129 184

136

9 5491

9 56

23181610

(8)25

94

Allother

1279 11

9 246

369 43170

9 69 11

949 20

9 1129 379 27

1292

14496

9 744

Allother,excessof re-ceipts(+) orexpen-ditures

+60+87

+116

+20+36+43

+19+13

+8+2- 1

+14+11+23+ 11+13+5

+10+ 15

Details of general fund balance(end of period)

Total

2,5532,2162,838

2,6762,5691,913

2,5692,4473,0842,9333,3433,3893,0442,9242,8382,4472,2312,1781,913

In-activegold

1,087

1,271

In-cre-

menton

gold

141142142

141142143

142142142142142142142142142142142142143

Seign-iorage

356446536

467558

467478492503508515522528536544549554558

Work-

9701,6282,160

8751,9601,213

1,9601,8282,4492,2882,6932,7322,3802,2542,1601,7611,5391,4811,213

1 Excludes debt retirements. T Revised.2 Includes taxes under Social Security Act and on carriers and their employees.3 Includes miscellaneous internal revenue, unjust enrichment tax, and processing taxes.4 Excludes expenditures for adjusted service which are included under "Transfers to trust accounts, e tc ."5 Includes revolving funds of Public Works Administration and Farm Credit Administration.6 Includes expenditures for retirement funds, adjusted service certificate fund, old-age reserve account and railroad retirement account; except

for the adjusted service certificate fund, these appear as receipts under "Trus t accounts, e tc ."'' Details given in lower section of table. 8 Less than $5C0,000. 9 Excess of credits.i° Includes other trust accounts, increment resulting from reduction in weight of the gold dollar, expenditures chargeable against increment

on gold (other than retirement of national bank notes) and receipts from seigniorage.



GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, SEPTEMBER 30, 1939[Based on compilation by U.

ASSETS

Loans and preferred stock:Loans to financial institutions .Preferred stock, etcLoans to railroadsHome and housing mortgage

loansFarm mortgage loansOther agricultural loansAll other loans

Total loans and preferredstock

CashU. S. Govt. direct obligationsObligations of Government credit

agencies:Fully guaranteed by U. S.Other 6

Accounts and other receivablesBusiness propertyProperty held for saleOther assets

Total assets other than inter-agency 6 .

LIABILITIES

Bonds, notes, and debentures:Guaranteed by United States...Other 6

Other liabilities (including reserves).

Total liabilities other thaninteragency 6

Excess of assets over liabilities, ex-cluding interagency transactions.

Privately owned interests

U. S. Government interests

S. Treasury Department from reports received from organizations concerned. In

Recon-structionFinanceCorpo-ration

andPublicWorksAdmin-istration

210515462

212 462

1,6702

48

824

0)36

2

1,790

820

148

967

. 823

823

Home mortgage andhousing agencies

HomeOwners'

LoanCorpo-ration

211

2,055

2,26665

94

5366

2,885

2,731(0

107

2,839

46

46

Othermort-gageagen-cies

16440

188

(0

3923937

13

60)0)0)

488

13436

169

31950

269

UnitedStatesHous-

ingAu-

th ority

104

10421

2

1130

0)

257

114

8

122

135

135

Farm credit agencies

Farmmort-gageagen-cies

2,626

2,6266678

t(i)

2106

1198

3,114

1,279s 1,000

105

2,385

729200

528

OtherFarmCreditAdm.banks

and cor-porations

76

281

35653

171

21337

0)0)0)

642

20511

216

4264

422

Com-modityCreditCorpo-ration

617

6171

771

0)

697

409

188

597

100

100

Other

0)

1993 324

52424

0)

5

553

183

183

370

370

Ten-nes-see

Val-leyAu-thor-ity

14

6292

1

313

88

16

297

297

In-sur-anceagen-cies

56

5637

399

107

61138

671

31

204

208

463139

324

millions of dollars]

Other

0)30

0)4 282

312144

43101

181

557

956

65

492

492

Total

Sept.30,

1939

430842492

2,3472,6261,1181,068

8,923336738

14141

446535695111

11, 967

5,3561,3571,054

7,768

4,19*9393

3,806

Aug.31,

1939

428844492

2,3372,6371,1281,033

8,900418735

14145

450531704

95

12,017

5,4891,3451,052

7,886

4,131391

3,739

Sept.30,1938

470859495

2,3352,776

723837

8,496329684

15940

372447667125

11,319

5,0101,365

737

7,112

4,207377

3,830

i Less than $500,000.* Includes $63,000,000 loans of Public Works Administration.3 Includes $257,000,000 loans of Farm Security Administration.* Includes $158,000,000 loans of Rural Electrification Administration.* Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation.6 Includes, however, investments in securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction

Finance Corporation.NOTE.—For explanation of table, see BULLETIN for October 1938, p. 882.

RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS[Amounts outstanding. In thousands of dollars]

Oct. 31,1938

Apr. 3C1939

May 31,1939

June 30,1939

July 31,1939

Aug. 31,1939

Sept. 30,1939

Oct. 31,1939

175, 79533,127

513, 200436, 650

89, 872126, 86383, 48223, 274

126, 649

Loans to financial institutionsLoans on preferred stock of banks and insurance companies..Preferred stock, capital notes, and debenturesLoans to railroads (including receivers)Loans for self-liquidating projectsLoans to industrial and commercial businessesLoans to drainage, levee, and irrigation districtsOther loansSecurities purchased from Public Works Administration

Total loans and investments, other than interagency..

Preferred stock of Export-Import bankLoans to Rural Electrification AdministrationCapital stock of, and loans to R. F. C. Mortgage CoCapital stock of, and loans to Fed. Natl. Mtge. AssnLoans to Tennessee Valley Authority

216,15737,090521,981426,046194, 60698, 22479, 66719, 205138, 783

193,96733, 583528,024443,840111,391112, 531

27,129130,313

190,44733, 494528, 573436,612113,450114,49883,08428, 640128,865

183, 94333, 444529, 270439,19944, 683117,07983,10927,393116, 577

181, 50233, 349526,876438,86368,106121,80483,35825,196119, 705

178, 83333,181517,125438,83773,844123,04283,46223,812122,986

177,01133,162515,157438,83585, 264125,75383, 50223, 847124, 476

1, 731, 760

20,000

44,99631, 9752,000

1, 663, 744

45,00056,69855,06629,3983,000

1, 657, 663

45,00061,14855, 62533, 7963,000

1,574,697

45,000146,49857,09437,9968,300

1, 598, 759

45,000146,49855, 21941, 7768,300

1, 595,121

45,000146, 49854,90344,4388,300

1,607,006

45,000146, 49854,62946,5008,300

1, 608, 911

45, 000146, 49855,10250, 323

Total loans and investments 1,877,228 1,852,906 1,856,232 1,869,585 1,895,551 1,894, 260 1,907, 932 1, 914,133

N O T E . — F o r explanation of table and back figures, see BULLETIN for April 1936, p. 220.



FARM CREDIT ADMINISTRATIONLOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS


End of month

Farm mortgage loansb y -

Federalland banks

LandBank

Commis-sioner

Federal intermediatecredit bank loans toand discounts for—

Regionalagri-

culturalcredit cor-porations,productioncredit as-sociations,and banksfor cooper-

atives i

Otherfinancinginstitu-tions,except

coopera-tives

Produc-tion credit

associa-tions

Regionalagricul-

tural cred-it corpo-rations

Emer-gency

crop anddrought

loans

Loans to cooperatives b y -

Federalinter-

mediatecreditbanks

Banks forcooper-atives,

includingCentralBank

Agricul-tural

Market-ing Actrevolv-

ing fund

1934—December.1935—December.1936—December.1937—December.

1938—October. __November.December.

1939—January. _.February..MarchAprilMayJuneJulyAugustSeptemberOctober

1,915, 7922, 071, 9252,064,1582,035, 307

1, 997, 5611, 990, 4751, 982, 2241,973,1791,968, 7901, 960, 3571, 954, 6771, 947,9441,940, 5861, 934,0131, 928,1661, 922, 5771, 916,431

616, 825794, 726836, 779812, 749

766, 502760, 326752, 851745, 631740, 870733, 647

723,187717, 622712, 823708,426703,840699, 274

99, 675104, 706129,872165,194

174, 626166, 549168, 392163,815166, 996175, 362182, 643186, 588190, 359189,044187, 968179, 674169, 731

55, 67247,16241,01740, 464

36,12134, 53733, 54533,07734,11535, 31836, 48338,12439, 79440, 65741, 66137, 64533, 996

60,85294,096105, 212138,169

154, 560148, 430148,037148,416155,409167,867177, 792183, 351187, 712187, 844185, 215174,032162, 703

87,10243,40025, 28815, 592

12,35411, 59211,08110,86310, 68910, 39910, 29810, 28610, 23510,0039,5999,1278,351

111, 182172,489164,887172,130

174, 574172,043170,891169, 707170,400175, 509179,156179,834179, 565178, 754177, 668175,060171,211

2,7311,6411,813

744851920834

1,1521,5281,256596359263127778

1,493

27,85150,01369, 64787, 633

86, 93186, 22187, 496

73, 69265, 78361, 36360,46559, 57762,12461,40465,16070,422

54,86344, 43353, 75430,982

27,91725,31323, 72323,94823, 63123, 30523,19023,06122, 59222,18922,42221, 66321, 582

i Some of the loans made by the regional agricultural credit corporations (prior to October 1935) and by the banks for cooperatives and most ofthe loans made by the production credit associations are discounted with the Federal intermediate credit banks. The amounts in this column arethus included in the three columns under those headings. Such loans are not always discounted in the same month in which the original creditis extended.

FEDERAL HOME LOAN BANK BOARDLOANS OUTSTANDING, BY INSTITUTIONS

[Loans in thousands of dollars]

End of month

Home mortgage loans b y -

HomeOwners'

Loan Cor-poration

Federal savings andloan associations

Numberof asso-ciations

Loansi

Federalhomeloanbank

loans tomemberinstitu-tions 2

POSTAL SAVINGS SYSTEM[In millions of dollars]

End of monthDepos-

itorsbal-

ancesi

Assets

Total

Cashin de-posi-tory

banks Total

U. S. Governmentsecurities

Di-rectobli-

Guar-an-teedobli-ga-

tions

Cashre-

servefunds,etc.2

1934—December _1935—December.1936— December.1937—December .

1938—October. __November.December.

1939—January...February..MarchAprilMayJuneJulyAugustSeptember.October __.

2,379,4912,897,1622, 765,0982, 397, 647

2, 203,8962,186,1702,168,9202,149, 0382,134, 2612,117, 5982,105, 8242,091, 3242,080, 5122,067, 8442, 059, 7922,054, 8652,049, 421

1,0231,2121,328

1,3701,3741,3681,3701,3751,3751,3811,3831,3861,3851,3921,3941,394

81, 300348, 000586, 700853, 500

1, 011,0871, 020,8731,034,1621,040, 7701, 051,1091, 067, 8871,089,8791,117, 2281,136, 2891,157, 5361,186, 7841, 206,8871, 231, 685

86, 651102, 791145, 394200,092

189, 217189, 685198, 840178, 852170, 614161, 614157,176157, 911168, 962161, 537159, 470163, 687168, 654

1935—June..1936—June. .1937—June_.1938—June..

1938—SeptemberOctoberNovemberDecember

1939—JanuaryFebruary _____MarchAprilMayJuneJulyAugustSeptemberOctober

1,2051,2321,2681,252

1,2481,2501,2501,2521,2591,2631,2661,2641,2611,2621,2681,271l 267

1,2361,2651,3071,290

1,2871,2891,2911,2911,2991,3041,3091,3061,3051,3041,3101,314

385203136115

777967

1,1001,103

1,1181,1181,1281,1321,1371,1441,1531,1541,1571,1571,1721,174

630800933936

952952961965971978

1,0111,0111,0261,028

147167167167

166166167167166166167166146146146146

74957172

717576737979767675798084

, 270

1 Federal Home Loan Bank Board estimates for all Federal savingsand loan associations.

2 Excludes loans to other than member institutions which are negli-gible in amount.

p Preliminary.1 Outstanding principal, represented by certificates of deposit. Does

not include accrued interest nor outstanding savings stamps.2 Includes working cash with postmasters, 5-per cent reserve fund and

miscellaneous working funds with the Treasurer of the United States,accrued interest on bond investments, and accounts due from late post-masters.

Back figures—See BULLETIN for August 1935, p. 502.



PRODUCTION, EMPLOYMENT, AND TRADE[Index numbers; 1923-25 ayerage=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation]

Yearand

month

19191920192119221923192419251926192719281929193019311932193319341935193619371938

1936

SeptOctNovDec

1937

Jan.FebMarAprilMayJune...July.—AugSept. ._OctNovDec

1938

JanFebMarApril...MayJuneJuly.—AugSept.—OctNovDec

1939

JanFebMarApril. __May___JuneJuly....AugSept—Oct

Industrial production i *

Total

Ad-justed

109110114121

1141161181181181141141171111028884

80797977767783889096103104

1019998929298101103111

P120

Unad-justed

838767851019510410810611111996816476799010511086

108111115114

1121171221221221151111151091029080

7979807877778187919710498

100991009594989799112P123

Manufac-U

Ad-justed

110110114121

1151161171181181141141171101008579

76757573737482878995103104

1009796929197100104111P120

Unad-justed

848767861019410510810611211995806375789010510984

107110115114

113118122125123114110114106998675

7576777675757985899510398

r99981009694979599110P121

Minerals

Ad-justed

102105112117

111116128115117115112113116113109115

108103104100929293959798102109

110110110959810410691114

P122

Unad-justed

77897074105969910810710611599847182869110511698

110115115111

107112119105118118116121125123113109

10399969190929397102106105103

105105102889710510796123P133

Construction contracts awarded (value) 2

Total

Ad-justed

59575866

636256535661676256525661

525146525154596678829696

867369676363677373P77

Unad-justed

636356798494122129129135117926328253237555964

60545153

515456616872756656495049

424446596163656979788577

706369767573737673P77

Residential

Ad-justed

47434045

454745444442444037363230

263233373742495356575657

555855585558626768P67

Unad-justed

44304468819512412111712687503713111221374145

47413938

374247515247454037353125

222835434446495256565448

455158686564636668P65

All other

Ad-justed

69697283

777564616677868171657687

736656656264687796102128128

1118580746867717876P84

Unad-justed

7990658886941201351391421421258440374850707480

70656265

636463688192998772616568

59565573767678849796111100

907279838480818477P79

Factory em-ployment 3

Ad-justed

102102104107

10710811011111211111211211010810498

939290888685868889909394

959494949394959697

P101

Unad-justed

1071078291104961001021001003069278667386919910990

104105105106

10510811011111211011111211211010497

919191898684858992929394

9294949493939496100P103

Fac-torypay-rolls 3

Unad-justed

981177681103961011041021041108968475065748610378

87939499

951001061101101081051091051059385

757878757371717782848487

848688868587849094

P101

Freight-carloadings 4 *

Ad-justed

75778283

808283848078807978767167

656260575858616264686969

69676660626769707780

Unad-justed

8491788510098103107104104107927455586264757862

84868477

737680798079828187847262

595757555758626371757064

63626358626770718589

Departmentstore sales *

(value)

Ad-justed

88909492

939593939393929394939189

908886837882838386848989

88878888858686899180

Unad-justed

7894878898991031061071081111029269677579889285

94100105161

7276908995906572100103101156

7070778680795865919299156

69698288878360699799

p Preliminary. r Revised. * Average per working day.1 For indexes of groups and separate industries see pp. 1121-1122; for description see BULLETIN for February and March, 1927.2 3-month moving average of F. W. Dodge Corporation data, centered at second month; for description see p. 358 of BULLETIN for July 1931.3 The indexes for factory employment and payrolls unadjusted for seasonal variation are compiled by the Bureau of Labor Statistics. For

description of the seasonally adjusted index of factory employment compiled by F. R. Board of Governors see BULLETIN for October 1938, pp. 835-837, and for October 1939, p. 878. For current indexes of groups and separate industries see pp. 1123-1126. Underlying figures are for payroll periodending nearest middle of month.

4 For indexes of groups see p. 1128.Back figures.—See Annual Report for 1937 (table 81). For department store sales see BULLETIN for October 1938, p. 918; for factory employ-

ment and payrolls see BULLETIN for October 1938, pp. 838-866, and for October 1939, pp. 879-887.



INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES)[Index numbers of the Board of Governors; adjusted for seasonal variation. 1923-25 average=100]

Industry

Manufactures—Total1 Durable

Nondurable

IRON AND STEELPig iron . .Steel ingots

TRANSPORTATION EQUIPMENT:AutomobilesLocomotives _ . _ .

NONFERROUS METALS:Tin deliveries *ZincLead

CEMENT AND GLASS:CementGlass, plate _ _._

COKE:ByproductBeehive

TEXTILESCotton consumption. _Wool

Consumption _ ___Machinery activity *Carpet and rug loom activity L

Silk deliveries

LEATHER AND PRODUCTSTanning

Cattle hide leathersCalf and kip leathersGoat and kid leathers

Boots and shoes _

FOOD PRODUCTS:Slaughtering and meat packing

HogsCattle •CalvesSheep... _

Wheat flourSugar meltings _

TOBACCO PRODUCTS __CigarsCigarettesManufactured tobacco _ ._

PAPER AND PRINTING:Newsprint production .Newsprint consumption .

PETROLEUM REFININGGasoline 1

KeroseneFuel oil i _ _Lubricating oil1

RUBBER TIRES AND TUBES 1

Tires, pneumatic 1

Inner tubes 1

Minerals—Total

Bituminous coalAnthracitePetroleum, crude. . . . _Iron oreZincLead _ _ . .Silver

1938

Sept.

8969

107

755977

464

717550

69107

895

10310793

1078666

111

10378867265

119

9888

10611815288

106

16075

22984

57130

206265109141113

959871

97

7150

158417550

102

Oct.

9583

106

906792

845

818050

80155

085

10010491

1018767

104

10181806970

114

050204

10814001

103

16074

21178

58132

208269102143110

9910372

98

7249

161508050

102

Nov.

10394

110

10876

112

968

738866

84155

1056

11211210712310169

123

10700948977

118

048806

11215286

100

16476

23305

63128

208269104140109

10010475

102

7658

16542886651

Dec.

10492

114

10174

104

9912

599457

82153

1066

11712011613411272

116

1239899

10985

138

867989

10613792

108

17976

25807

61128

201259107142100

11211679

109

7867

169

945785

1939

Jan.

10088

no937295

10512

668970

69147

1066

10911110711411377

107

12410310011997

137

877497

11115092

106

16579

23778

61125

205262112145106

11011576

110

7569

171

897086

Feb.

97••84109

887389

10012

728773

80133

1055

1091111111171138797

12410510411897

137

8367

1001081579470

16277

23178

61127

201256113138117

10911471

110

7961

169

8773

100

Mar.

0680

110

837584

0114

760069

90131

1065

1101141051109184

108

1210593

10395

138

8973

1061101569778

16478

23680

62126

202256122140111

11411976

110

7761

173

906986

Apr.

9276

105

796680

8714

929171

8183

942

971058501807888

1150701

101106127

008100

10513510004

16477

23681

63130

200265122143115

10410873

05

3180

174

0171

101

M a y

0171

108

735575

7315

1028082

7580

772

104110105120987376

113040180

104126

0484

1041081420572

17075

24685

65127

211260124143110

10210668

08

4673

17555898271

June

9782

110

897390

8115

939070

79124

1035

1111151161381057084

108918791

102119

8773

10310414310066

17075

24784

63132

215276122144121

11211777

104

71

9070

107

July

10088

110

10081

102

8715

879168

8287

1105

1111171141361056484

114888969

106131

8977

1021071459681

15873

22780

63126

212273117139115

11111677

106

7553

17474916870

Aug.

10492

115

10591

107

8919

999371

76121

1205

1201281231501037987

11798

106'73103

130

9284

1001041398877

16876

24189

63130

218280123140128

12212784

91

7753

12778937179

Sept.

I l l103117

121101123

85

979871

78165

1307

12112911813810384

107

10386927187

114

10095

10211114610396

16476

23585

65142

221284118148123

123128'86

114

8471

174979871

104

Oct.

P120

P117

157119160

78

9511070

87222

23

129P119P131

120

P116

996995

1101449191

16675

24083

63137

12613190

P122

p r o

^18512811070

i Without seasonal adjustment. v Preliminary. r Revised.NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series

on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical woodpulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision.



INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES)[Index numbers of the Board of Governors; without seasonal adjustment. 1923-25 average=100]

Industry

1938

Sept. Oct. Nov. Dec.

1939

Jan. Feb. Mar. Apr. May June July Aug. Oct.

Manufactures—Total _DurableNondurable

IRON AND STEEL..Pig ironSteel ingots...

TRANSPORTATION EQUIPMENT:Automobiles __. _Locomotives

NONFERROUS METALS:Tin deliveriesZincLead - --

CEMENT AND GLASS:CementGlass, plate

COKE:« Byproduct-

Beehive

TEXTILESCotton consumptionWool

ConsumptionMachinery activityCarpet and rug loom activity

Silk deliveriesLEATHER AND PRODUCTSTanning

Cattle hide leathersCalf and kip leathers._.Goat and kid leathers..

Boots and shoes

FOOD PRODUCTS:Slaughtering and meat packing...

HogsCattleCalves

Wheat flourSugar meltings..

TOBACCO PRODUCTSCigarsCigarettesManufactured tobacco..

PAPER AND PRINTING:Newsprint production...Newsprint consumption.

PETROLEUM REFINING..GasolineKeroseneFuel oilLubricating oil

RUBBER TIRES AND TUBESTires, pneumaticInner tubes

Minerals—Total .

Bituminous coal._AnthracitePetroleum, crude.Iron oreZincLeadSilver

8966109

755776

86107

103104961138666116

11984908368143

9066118113176104114

1778625291

57128

206265111141113

959871

102

765116378714897

9579109

91155

103107961118767104

11186928273128

947911011316310298

1619022281

58140

209269107143110

10372

106

7963163867852101

10392113

10077103

1158

73

155

107

11611711313410169127

102

8576112

104971111141519378

1679023192

137

208269113140109

10010475

105

866016335886955

85108

11712

64153

1077

11111111713511272103

10495969492109

10110394100135

1455721279

61132

202259115142100

11211679

103

8266164

'9984111

907192

10511

42147

1077

11411710911811377122

115981019892125

101100981041519070

1676123279

62120

205262115145106

11011576

105

8374

164

58

••84111

927593

••10012

48133

1087

11511911612811387104

126108111108101138

748810014791

1476721179

61125

202256115138117

10911471

105

166

9375108

10086111

937995

10514

65138

1096

1121191061229184104

12594949197145

8474921111429192

1567122481

61131

201256119140111

11411976

102

7750171

9684106

877089

10613

952

1001138488807887

112949191105124

81728711412791109

1517221578

64139

208265121143115

10410873

2683174

9470102

9478107

795681

15

10290

93

762

104114100111987375

10588878596115

92811011221399081

1727824885

131

211269119143119

10210668

97

40731778290

9785108

112

1015

1051111091241057075

10490

102113

76961081408878

1868127286

64131

215276113144121

11211777

105

511731328771105

9583105

15

10078

1074

1031061061211056480

112

8198128

846910110414594

1717624980

62112

211273108139115

11111677

107

44178150846559

9985111

10387105

121

1164

1121151181391037991

rl30100104••88101

'149

8064989614094

180

26191

61116

217280116140128

12212784

7553129159876878

11099119

12098122

59

165

1287

12112512214510384113

11991958291137

9171

114107170122102

18187

259

64139

221284121148123

123128'86

123

9072

1791879367

P121P122P121

152119156

93

9510672

222

22

P127133

P126P 1 4 5P 1 1 5

P 9 0120

P 1 1 5

P130

9784

11111615810287

17992

252

63146

12613190

P133

P102P 7 5

P 1 8 721810672

p Preliminary. «• Revised.NOTE.—Descriptive material and tables giving back figures may be obtained upon request from the Division of Research and Statistics. Series

on shipbuilding, silk-loom activity, and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical woodpulp, paper boxes, and lumber, included in the total index, are withheld from publication pending revision.



FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION)[Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100]

Industry and group

TotalDurable goodsNondurable goods

IRON, STEEL, PRODUCTSBlast furnaces, steel worksBolts, nuts, washers, rivets.Cast-iron pipe _Cutlery, edge toolsForgingsHardwarePlumbers' suppliesStamped, enameled ware...Steam, hot-water heatingStovesStructural, ornamental _Tin cans, tinwareToolsWirework _ _ _

MACHINERY __Agricultural implementsCash registers, etcElectrical machineryEngines, turbines, etc.Foundry, machine-shop products-Machine toolsRadios, phonographsTextile machineryTypewriters

TRANSPORTATION EQUIPMENTAircraftAutomobilesCars, electric-, steam-railroadLocomotives __Shipbuilding

NONFERROUS METALS, PRODUCTSAJnminTimBrass, bronze, copperClocks, watchesJewelry _ _ _ _Lighting equipment. _ _Silverware, plated wareSmelting, refining _

LUMBER, PRODUCTSFurniture _Lumber, millwork _Lumber, sawmills

STONE, CLAY, GLASS PRODUCTS _Brick, tile, terra cotta .CementGlass.. . _ _Marble, granite, slatePottery___

TEXTILES, PRODUCTSFabrics

Carpets, rugs _Cotton goods . .Cotton small wares.Dyeing, finishing textilesHats, fur-feltHosiery. __Knitted outerwearKnitted underwearKnitted clothSilk, rayon goodsWoolen, worsted goods

Wearing apparel _Clothing, men's.Clothing, women'sCorsets, allied garmentsMen's furnishingsMillineryShirts, collars

1938

Sept.

89 475.6

102.7

83.688876984497175

1357479589376

125

85.1100134788275

1208963

123

69.8798

72311693

86.2128987984716170

62.8806558

70.76263874581

100.389.0678576

11894

1477169

1316478

121.410617710314184

119

Oct.

90.278.3

101.5

85.889907085528373

1397581598876

137

86.8104134818575

1229864

126

80.3824

86281594

88.41311018184776471

62.4796557

73.25367924682

98.988.1718477

11696

1487269

1356275

119.010417110414284

117

Nov.

92.882.1

103.1

89.193957388648974

1467479609180

154

89.2104133838777

12411766

127

90.6837

992916

100

91.9132106

7986826576

64.0806759

76.85668984784

100.090.5748580

11891

1487170

1396484

116.910416710513872

117

Dec.

94.483.7

104.7

90.995977290569174

1477482629383

162

91.7110134858879

12612369

127

93.28681023317

103

93.1131106

7991856777

65.0835769

77.85768994985

102.292.3768583

12189

1517771

1446588

120.010617310614077

119

1939

Jan.

94.684.4

104.4

90.795967290548974

1447482639483

154

92.3114132849280

12812669

127

94.19001023519

106

93.31311058490866878

65.7845860

79.66164

1004987

101.991.9788582

12290

1536472

1346488

119.510317110713279

130

Feb.

94.384.2

103.9

90.494967389558774

1437484669584

152

94.0123131859181

13212971

128

92.9966

983817

113

93.41351048491846878

65.1856759

77.45966954886

101.891.7778682

12290

1536871

1346484

120.210417310713684

123

Mar.

94.083.7

103.8

90.794977390548774

1477585679584

151

94.8124131869182

13413072

129

91.2968

973616

111

93.41401048492806977

63.2856656

77.46866955385

101.091.0778580

12287

1547070

1346581

119.210417110713284

121

Apr.

93.883.9

103.3

90.595947390558474

1447584679684

148

94.9122127879182

13812473

129

91.11,075

963418

112

93.21431038593776878

64.2856757

77.95867975384

99.690.2778578

12186

1546770

1336577

116.410316510912881

119

May

93.382.9

103.3

89.694937386558075

1427485679584

142

94.4119126869381

14012175

126

87.21,169

893421

118

92.81421048490766877

64.8845659

75.45563965284

99.891.0748580

12484

1536873

1286681

115.210216111112580

120

June

94.383.9

104.2

90.396937191547276

1477586669584

135

95.4118128879583

14412275

126

88.91,267

893325

127

92.81451058291736877

65.3856969

77.55766986087

101.292.0738679

12089

1527274

1386386

117.510416911412974

120

July

95.384.7

105.4

90.696947291567077

1477889679581

128

96.1115127879583

14913177

122

90.01,385

903228

128

94.61531068494757076

66.0866960

78.45867985188

104.194.574

8312893

1547577

1386389

121.110717411513573

123

Aug.

96 0'85.3105.9

92.597987394567878

1577988699885

121

97.3121125889785

14612678

119

••88.31 414

f883129

125

r96.31571098595777075

66.4866060

78.15767995087

104.995.4769184

12990

1558079

1406285

121.410717411714077

121

Sept.

97 388.5

105.7

95.7101101

7497598480

1588086719787

149

99.7123127929986

15512978

122

98.21,512

1003428

128

99.21521158591887177

67 4876161

79 05967

1004887

103.694.2789186 -

12987

1497578

1406183

120.410617211613680

121

Oct.

101 094.1

107.5

105.0115113

76102668881

160848975

10490

164

105 612512697

10891

17014581

123

104.21 606

1054125

132

107.11651308793967083

69 4896363

81 06068

1055087

106.498.0839491

13386

1527579

1476590

120.410717011713880

121

r Revised.



FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONALVARIATION)—Continued

[Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100]

Industry and group

LEATHER, MANUFACTURESBoots, shoesLeather

FOOD, PRODUCTSBakingBeverages - -ButterCanning, preservingConfectioneryFlourIce creamSlaughtering, meat packingSugar, beetSugar refining, cane

TOBACCO MANUFACTURESTobacco, snuffCigars, cigarettes

PAPER, PRINTINGBoxes, paperPaper, pulpBook, job printingNewspaper, periodical printing.

CHEMICAL, PETROLEUM, AND COALPRODUCTS

Petroleum refiningOther than petroleum

ChemicalsCottonseed oil, cake, mealDruggists' preparationsExplosivesFertilizersPaints, varnishesEayon, allied productsSoap

R U B B E R PRODUCTSRubber boots, shoesRubber tires, inner tubesRubber goods, other

1938

Sept. Oct. Nov. Dec.

97.29781

126.714426396

15383767598

11699

65.765

109.0105104

112.9121110.911310010987

10311829981

75.85461

125

96.59683

123.414326396

12982767799

108

64.45965

109.210510598

113

112.6120110.811599

1088699

11830080

76.55663

123

97.69685

127.414427695

149837878

10010895

65.06365

110.610810699

114

113.3120111.811910110884

10211829777

81.46066

133

98.19786

128.814427496

151867978

10015294

65.66366

111.1110106100114

113.7119112.412010410885

10011929781

82.96067

137

1939

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.

98.99887

128.81442769615084797998212

65.96167

111.0111106100113

113.6119112.3119971098610311929781

81.45867133

99.09887

125.7144275941438377789612093

64.86165

111.111110699114

112.9119111.412088107869711830180

81.46066133

99.29886

127.31442709415882787896107

61.46262

111.4112106100114

113.4119112.212096108

12029979

82.26067134

97.79785

127.01442709515781777896103102

64.56365

111.5111106100114

114.2118113.31181031098611012130978

81.36067131

9284

128.4146272961598180779810787

65.16265

111.511110799115

114.4119113.41171101118711511930279

81.16167129

97.1

129.414727595162808177100104

65.56266

111.111110699114

113.1120111.41178811290107120295

80.859

131

98.79887

127.9147269951508281751019994

65.761

111.8113106101114

'113. 7121

r i l l . 911585

9210512229884

79.74767

134

97.49687

129.714626996

'16086797510110596

65.262

112.011510799115

r i l l . 9122

nO9.411981

9310312525487

83.65868

138

96.89587

128.11462699514782827610213190

64.46265

112.811610998116

116.2122114.912287

11398

11112329787

86.15870

144

97.295

126.414627095133818077103108100

63.56264

114.912111499116

119.8122119.213293113102108125

91.26074

154

r Revised.NOTE.—Figures for October 1939 are preliminary. For description and back data see the BULLETIN for October 1938, pages 835-886, and

for October 1939, pages 878-887. Underlying figures are for payroll period ending nearest middle of month.



FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUTSEASONAL ADJUSTMENT)

[Index numbers'of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100]

Industry and group

TotalDurable goodsNondurable goods

IRON, STEEL, PRODUCTSBlast furnaces, steel worksBolts, nuts, washers, rivetsCast-iron pipeCutlery, edge toolsForgingsHardwarePlumbers' suppliesStamped, enameled wareSteam, hot-water heatingStoves —Structural, ornamentalTin cans, tinwareToolsWirework

MACHINERYAgricultural implementsCash registers, etcElectrical machineryEngines, turbines, etcFoundry, machine-shop products.Machine toolsRadios, phonographsTextile machineryTypewriters

TRANSPORTATION EQUIPMENT __.AircraftAutomobilesCars, electric-, steam-railroadLocomotivesShipbuilding

NONFERROUS METALS, PRODUCTSAluminumBrass, bronze, copperClocks, watchesJewelryLighting equipmentSilverware, plated wareSmelting, refining

LUMBER, PRODUCTSFurnitureLumber, millworkLumber, sawmills

STONE, CLAY, GLASS PRODUCTSBrick, tile, terra cottaCementGlassMarble, granite, slatePottery

TEXTILES, PRODUCTSFabrics

Carpets, rugsCotton goodsCotton small waresDyeing, finishing textilesHats, fur-feltHosieryKnitted outerwearKnitted underwearKnitted clothSilk, rayon goodsWoolen, worsted goods

Wearing apparelClothing, men'sClothing, women'sCorsets, allied garmentsMen's furnishingsMillineryShirts, collars

Revised.

Factory employment

1938

Sept. Oct,

92.075.9107.3

84.38887708449707413376846010375121

85.49413478837512110362123

64.4774653016

87.3127

716270

65.38456

73.355

8749

101.388.4

751149714875691336677125.!11018410313793121

92.479.7104.6

9070875284741417788619177138

87.39813481837512211963126

80.279986281695

91.51331028497

72

65.28456

75.75671934884

100.989.07184781169615178701396476123.310717810514887122

1939

June July Aug. Sept. Oct

93.484.6101.8

90.4969373905472761477588679884136

95.61191288799831451207512590.8

1,305923526126

91.31441048085716877

66.3836061

80.561729952

98.089.67384771178614971751355985112.610015811312768119

93.583.0103.5

9593758754697714476

10080126

11312787968314713077121

79.91,399

763229124

91.31501048087716376

66.7846061

79.76273965482

98.191.17486801199014972731366086109.510514411212456118

'96.3'83.9108.0

92.397977592567678

'15378907210784116

11412588978414013678118r75.2

1,41470322912294.71541088394736975

68.7886163

6273995385

103.593.17687811229415278771406386122.111017411413178120

100.089.4110.2

96.4101100759759838015681927410786145

100.311612792

15615077122

95.71,467

973328129

100.415111586100887277

70.19162

81.8637210152

104.593.57890841259015079781436382124.Ill17911613389123

103.395.5110,

106.01151137610465888216286977610691166

106.5118126971059117117780124

103.11,5581054026133

110.616813190107997384

72.594

83.6637210652

108.498.8394921338615581811526791124.811017811814583127

Factory payrolls

1938

Sept. Oct,

81.668.196.7

70.17081577246685913457764810566122

77.8931227688641179253114

64.172666241195

78.71359375,78585565

59.6724555

61.54262873467

86.475.8547169989416358591155361101.58314210312310295

84.274.694.9

76.7

57785189621496383499170142

81.19912181886512010855126

83.5774912211

85.41441008288656167

59.7724554

66.34464983377

85.177.4597375101771716362118536294.7771321121387096

1939

June July Aug. Sept. Oct,

86.580.793.0

82.68690668256746814663775910379138

95.4127125921147716610573113

1,299893025136

84.01571037670565872

60.1694856

70.650681014073

79.75.657717097741485667111487182.37410611711145

84.476.0

78.68283667255656513760735910372124

94.0123123911107516611475113

1,338732527132

83.41481077669545171

56.368 '4550

9240

79.376.557737398821445765114487379.778971131063791

'81.599.0

'88.0931046880598071

15668786411579116

124119931147816112375117

'78.31,381'752727128

163'1118577585971

62.9765057

71.75070103'4175

88.3'80.364757610384

'16264681175272'98.3'8613311212067103

93.687.5100.5

91.595109638563917215671826311782161

100.9125124981168018213973122

99.51,3621032826135

96.61671238984756671

63.4785056

71.850681053975

81.0687982108741566267121526892.18011812012181102

101.399.0103.9

111.5124136729575978017083936911192183

111.1131126106130

17076126

109.01,5141123625143

113.51911549993827181

855261

78.555721214079

93.988.2758489115611766875132577799.08413312714464116



FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT SEASONALADJUSTMENT) —Continued

[Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100]

Industry and group

LEATHER, MANUFACTURESBoots, shoesLeather

FOOD, PRODUCTSBakingBeveragesButterCanning, preservingConfectioneryFlourIce creamSlaughtering, meat packing.Sugar, beetSugar refining, cane

TOBACCO MANUFACTURES..Tobacco, snuffCigars, cigarettes

PAPER, PRINTINGBoxes, paperPaper, pulpBook, job printingNewspaper, periodical printing.

CHEMICAL, PETROLEUM, AND COALPRODUCTSPetroleum refiningOther than petroleum

ChemicalsCottonseed oil, cake, mealDruggists' preparationsExplosivesFertilizersPaints^ varnishesRayon, allied productsSoap

RUBBER PRODUCTSRubber boots, shoesRubber tires, inner tubes.Rubber goods, other

Factory employment

1938

Sept.

98.29980

150.214628110031792788297

107100

67.864

109.410710498

114

114.122112.71151311118992

11730283

75.85661

123

Oct.

95.49583

133.914526396

172977872

96

67.7

110.111210599

114

114.9121113.51171401128889

11830183

77.65863

125

1939

June

94.19385

127.2147298103141727992995491

65.261

109.810810697114

109.8121107.2117541089079124286

5666129

July

19.7

135.014830110419770839310157

65.45966

110.111010699112

110.4122

rlO7. 711749

108917312229782

78.74567131

Aug.

100. 7100

147. 0147295103289798089100

66.'6167

110.9114107

109. 2123105.11957

1109374122255

82.659

133

Sept.

97.89787

150.71482879930491848210112191

66.46167

113.211910998116

117.7123116.412411311410098122300

6070142

Oct.

96.194

137.114827095177968373103290101

66.76267

116.412811499117

122.0123121.81341321171049812531091

92.56274157

Factory payrolls

1938

Sept.

79.57877

135.813732085257927866106105

7162

102. 411810283105

118.1135112.91241061189878117282

74.856

114

Oct.

74.7179

125.41332938114193776010724682

62.96363

105.112610783107

119.3133115.113011512410170119277

77.75967

120

1939

June

74.67082

123.813835587

110697475

1075977

61.56560

103.511810584106

118.7134113.9132451191016512927297

82.15575122

July

83.68282

128.6139359891546480771095481

61.86761

102.011710186102

rll7. 9132

rll3.713142

12110363124283

81.54377121

Aug.

'•84. 68383

135.1135350872517777741068681

62.76762

103.712510883102

119.1136113.913648

12210963126247102

'86.35879127

Sept.

76.67284

139.61393368426492

10811786

62.96762

109.313311386110

124.135121.41409412511486128286107

91.26283135

Oct.

76.571

129.71373088215395836310824187

63.37162

113.715012684110

133.6141131.415811413512582135303109

102.26491

162

r Revised.

NOTE.—Figures for October 1939 are preliminary. Back data may be obtained from the Bureau of Labor Statistics. Underlying figuresare for payroll period ending nearest middle of month.



CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION[Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.]

Month

January .FebruaryMarch____ApriLMayJuneJulyAugust _SeptemberOctober. _NovemberDecember

Year

Total

1938

192.2118.9226.9222.0283.2251.0239.8313.1300.9357.7301.7389.4

3,196.9

1939

251.7220.2300.7330.0308.5288.3299.9312.3323.2261.8

Residentialbuilding

1938 ?

36.240.079.474.683.285.788.099.799.6

112.795.391.5

985.8

1939

80.279.0

125.2114.4133.8111.9109.3127.2129.7118.3

Nonresidential building

Factories

1938

6.64.9

15.711.58.6

10.79.7

11.310.713.810.57.0

121.1

1939

7.19.5

13.017.513.015.817.410.420.716.8

Commercial

1938

15.413.020.218.919.218.826.218.314.024.213.714.0

215.8

1939

17.313.517.421.319.526.822.921.126.622.6

Educational *

1938

19.015.421.016.911.814.710.721.433.947.049.073.3

334.1

1939

31.721.827.621.116.412.619.413.810.19.5

Other i

1938

16.415.131.033.138.237.726.136.333.446.042 845.2

401.2

1939

28.924.739.834.827.837.828.724.624.923.8

Public worksand publicutilities'

1938

98.630.559.767.0

122.283.579.3

126.1109.3114.090.4

158.4

1,139.0

1939

86.571.877.7

121.097.983.6

102.1116.3111.170.8

i Not strictly comparable with data for earlier years due to changes in classification.

CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF FINANCING[Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.]

Month

January __FebruaryMarchAprilMayJjinft ,_JulyAugustSeptemberOctoberNovemberDecember

Year .

Total

1934

18697

17813113412712012011013511293

1,543

1935

10075

123124127148159169167201188264

1,845

1936

215140199235216233295275234226208200

2,675

1937

243188231270244318322281207202198209

2,913

1938

192119227222283251240313301358302389

3,197

1939

252220301330308288300312323

Publicly-financed»

1934

15765

126787273526969797461

975

1935

653868534764679297

114118196

1,007

1936

1497996

10594

1161531531161018982

1,334

1937

11269667493

137131104807893

115

1,152

1938

118519599

14410898

171160203179279

1,705

1939

148111128160135128137158144

Privately-financed *

1934

293152536354675141573832

568

1935

453755718084937670877068

837

1936

6662

103130122116141122119125119117

1,341

1937

13011916519515118019117812712410694

1,761

1938

7568

132123139143142142141154123110

1,492

1930

104109173170174161163154179

i Back figures —See BULLETIN for February 1938, p. 159. Data for years prior to 1932 not available.

CONSTRUCTION CONTRACTS AWARDED, BYDISTRICTS

[Figures for 37 States east of the Rocky Mountains, as reported by theF. W. Dodge Corporation. Value of contracts in thousands of dollars.]


BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas City .._Dallas

Total (11 districts)

1939

Oct.

16,47847,22616,53729, 48528, 27627, 57144, 67016, 52310,04110, 29914, 690

261, 796

Sept.

21, 28858,46518,90734, 23232,05827,98263,80621, 2748,92311,80924,483

323, 227

1938

Oct.

35,89582,44116, 58233,08934, 20528,08265,86120,71610,62711,15419,046

357, 698

COMMERCIAL FAILURES, BY DISTRICTS[Figures reported by Dun & Bradstreet. Amounts in thousands of

dollars.]

Federal Reservedistrict

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. Louis. . __MinneapolisKansas CityDallasSan Francisco

Total

Number

1939

Oct.

902604752476513738133822107

916

Sept.

67220523831331122621422195

758

1938

Oct.

852576783515412742254821137

Liabilities

Oct.

1,6083,5491,0241,348

7501,1373,158

216155350555

2,290

Sept.

1,1982,4481,077

771381328

1,262301104283257992

997 16,140 9,402 13,219

Oct.

1,0365,107770948442476

1,843477210443316

1,151


1128 FEDERAL RESERVE BULLETIN DECEMBER :

MERCHANDISE EXPORTS AND IMPORTS[In millions of dollars]

Month

JanuaryFebruaryMarch

AprilMayJune — _-

JulyAugustSeptember _

OctoberNovemberDecember-

Year

Merchandise exports 1

1935

176163185

164165170

173172199

221270223

2,283

1936

199182195

193201186

180179221

265226230

2,456

1937

223233257

269290265

268277297

333315323

3,349

1938

289262275

274257233

228231246

278252269

3,094

1939

213219268

231249236

230251289

P332

Merchandise imports *

1935

167152177

171171157

177169162

189169187

2,047

1936

187193199

203192191

195193216

213196245

2,423

1937

240278307

287285286

265246233

224223209

3,084

1938

171163173

160148146

141166168

178176171

1,960

1939

178158190

186202179

169176181

P 2 1 5

Excess of exports

1935

9118

- 6—513

- 33

37

32100

37

235

1936

11—11

- 4

- 1 09

—5

- 1 5—14

5

5230

- 1 5

33

1937

- 1 8- 4 5- 5 1

- 1 85

- 2 1

33163

10892

115

265

1938

11899

102

11510987

876579

1007698

1,134

1939]

356177

454757

6175

107

P117

p Preliminary.i Including both domestic and foreign merchandise.» General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses.Source.—Bureau of Foreign and Domestic Commerce.Back figures.—See BULLETIN for January 1931, p. 18, for July 1933, p. 431, and for February 1937, p. 152.

FREIGHT-CAR LOADINGS, BY CLASSES[Index numbers; 1923-25 average=100]

TotalCoalCokeGrain and grain products...LivestockForest products .OreMiscellaneousMerchandise1 ._ _

TotalCoalCokeGrain and grain productsLivestockForest productsOre.M iscellaneousMerchandise 1

1938

Oct.

1939

June July Aug. Sept. Oct.

Adjusted for seasonal variation

686950954442487262

676851903640647161

697662803943597262

707869753742677462

778582884545858263

808795874450

1088662

Without seasonal adjustment

757650956243718265

675847893042

1087461

706452

1113443

1127461

716957903744

1257562

858978995749

1499265

899695876252

1609765

1 In less-than-carload lots.NOTE.—For description and back data see pp. 522-529 of BULLETIN

for June 1937. Based on daily average loadings. Basic data compiledby Association of American Railroads. Total index compiled by com-bining indexes for classes with weights derived from revenue data ofthe Interstate Commerce Commission.

DEPARTMENT STORES—SALES, STOCKS[Index numbers based on value figures; 1923-25 average=100]

Month

JanuaryFebruary. .March

AprilMayJune

JulyAugustSeptember

October ___ __NovemberDecember

Year

Sales i

Adjustedfor seasonal

variation

1938

908886

837882

838386

848989

1939

888788

888586

868991

90

Withoutseasonal

adjustment

1938

707077

868079

586591

9299

156

85

1939

696982

888783

606997

99

Stocks (end of month)

Adjustedfor seasonal

variation

1938

717070

696968

676767

676766

1939

676868

676667

676768

69

Withoutseasonal

adjustment

1938

636771

717165

616570

747862

68

1939

606569

696864

606571

77

1 Based on daily average sales—with allowance for changes frommonth to month in number of Saturdays and in number of Sundays andholidays. Adjustment for seasonal variation makes allowance in Marchand April for the effects upon sales of changes in the date of Easter.

Back figures.—Department store sales, see BULLETIN for August1936, p. 631, and for October 1938, p. 918; department store stocks, seeBULLETIN for March 1938, p. 232.



WHOLESALE PRICES, BY GROUPS OF COMMODITIES[Index numbers of the Bureau of Labor Statistics. 1926=100]

Year, month, or week

192919301931193219331934 .193519361937 __1938

1938—SeptemberOctoberNovemberDecember

1939—JanuaryFebruaryMarchApril .May „June _JulyAugustSeptemberOctober...

Week ending—1939—August 5

August 12August 19August 26 .September 2September 9September 16.September 23September 30October 7__October 14October 21October 28 . . . .November 4November 11November 18

Allcom-modi-ties

95.386.473.064.865.974.980.080 886.378.6

78.377.677.577.0

76 976.976.776 276.275 675.475 079.179.4

75 174.874.674.875.378 479.379.679 579.078.979.479.279.379.379.1

Farmprod-ucts

104.988.364.848.261.465.378.880.986.468.5

68.166.867.867.6

67.267.265.863.763.762.462.661 068.767.1

62.561.460.461.162.768.169.769.569.366.866.767.567.267.567.867.3

Subgroups

FARM PRODUCTS:GrainsLivestock and poultrvOther farm products

FOODS:Dairy productsCereal productsFruits and vegetablesMeatsOther foods _

HIDES AND LEATHER PRODUCTS:Shoes .Hides and skinsLeatherOther leather produci

TEXTILE PRODUCTS:Clothing

s. . .

Cotton goodsHosiery and underwear _Silk and rayonWoolen and worstedOther textile product

FUEL AND LIGHTING MI

goods5 .LTERIALS

Anthracite..Bituminous coalCokeElectricity.GasPetroleum products..

Foods

1938

Oct.

50.876.265.0

71.675.157.583 370.4

100 382.184.696.9

81.664.659.930 976.365.3

79.198.7

104.281.887 153.8

99.990.574.661.060.570.583.782.185.573.6

74.573.574.173.1

71.571.570.268.668.267.667.567 275.173.3

67.266.766.266.768.574.575.575.174.472.972.773.272.372.372.472.3

Other commodities

Total

91.685.275.070.271.278.477.979.685.381.7

81.381.180.680.3

80.280.280.480.580.680.280.280.182.183.8

80.580.580.480.480.481.782.483.083.383.783.784.184.284.484.484.4

Hides andleather

products

109.1100.086 172.980.986.689.695.4

104.692.8

92.093.494.693.1

93.191.991.890.991.692.392.5Q2. 798.5

104.6

93.793.59?. 892.69? 796.098.3

100.4104.1105.2105.0105.4105.5104.4104.5104.3

1939

July

52.369.760.7

64.671.962.075.360.4

100.876.984.195.6

81.265.160.240.275.464.1

72.695.8

104.278.189.052.2

Aug.

51.566 060.1

67 971.958 573 760.3

100 877.284.097.1

81.565.561.539 575.563.7

72.196.0

104 275.886 751.7

Sept.

65.176.364.6

74.578.862.881 071.7

L01 897.492.097.1

81.770.462.843 484.069.8

72.596.7

L04.2

87.253.3

Oct.

61.670.566.1

78.978.060.274 970.2

105.7112.497.899.3

83.274.363.546 291.378.3

75.398.2

108.0

54.0

Textileproducts

90.480.366.354.964.872.970.971.576.366.7

65.866.266.265.8

65.966.166.666.967.567.367.667.871.775.5

67.467.267.467.467.268.471.472.373 473.874.274.875.275.675.675.6

Fuel andlightingmaterials

83.078.567.570.366.373.373.576.277.676.5

76.675.473.773.2

72.873.073.173.473.973.072.872 672.873.9

73.473.573.673.273.274.074.174.274.474.874.474.674.674.774.774.8

Metalsand metalproducts

100.592.184.580.279.886.986.487.095.795.7

95.595.394.994.6

94.494.394.394.093.593.293.293 294.895.8

93.493.593.593.593.594.694.995.395 295.195.396.396.396.296.296.1

Buildingmaterials

95.489.979.271.477.086.285.386.795.290.3

89.589.889.289.4

89.589.689.889.689.589.589.789.690.992.8

90.190.189.589.789.790.190.791.091.291.892.592.593.093.193.192.9

Subgroups

METALS AND METAL PRODUAgricultural implements

Farm machinervIron and steel.Motor vehicle

CTS:

5 1

Nonferrous metalsPlumbing and

BUILDING M A T E Rheating

IALS!Bri(Vk" and til p.CecLui

dentnber

Paint and paint materialsPlumbing andStructural stee

heating1

Other building materialsCHEMICALS AND DRUGS:

ChemicalsDrugs and pharmaceuticFertilizer materials

als

MiXP.d fp.rtili7P.rsHOUSEI

FurFur

'URNISHING GOODS:nishingsniture __ _ _

MISCELLANEOUS:Auto tires andCattle feed

tubes ._ __

Paper and pulnRubber, crudeOther miscellaneous

Chemi-cals and

drugs

1938

Oct.

95.496.896.995.076 278.5

91 190.790 381 178.5

L07. 391.7

80.574.967 573 4

89.382.1

57.466 581.735.381.2

94.289.179.373.572.675.980.580.483.977.6

77.377.176.676.7

76.776.376.576.075.975.775.074.677.378.1

74.574.374.274.274.475.977.177 978.577.977 fi78.077.977.777.977.8

House-furnish-ing goods

94.392.784.975.175.881.580.681.789.786.8

86.285.785.886.0

85.485.285.285.485.585.685.685.686.687.8

87.087.087.087.087.087.087.188.889.189.189.289.289.389.689.789.7

Miscel-laneous

82.677.769.864.462.569.768.370.577.873.3

72.472.673.073.1

73.273.574.174.474.273.873.473.376.677.6

73.073.073.073.173.276.176.176.676.777.177.077.277.477.978.278.2

1939

July

93.494.795.193 073 379.3

90 691.591.882 279.3

107.389.6

78.271.867.572 6

90.081.0

60.572 479.934.781.3

Aug.

93.594 795.192 574 679.3

90 591.391 882 179.3

107.389.5

77.571.767.272 9

90.081.1

60.568 480.034.981.3

Sept.

93.594.795.592.184 779.3

91 091.393.784 779.3

107.390.3

81.272.869.272 6

91.781.3

60.593 481.847.782.8

Oct.

93.494.696.093.985.379.3

91.591.398.085 779.3

107.391.9

82.174.470.672 6

93.781.7

60.582 986.342.785.4

1 Preliminary revision.2 Revised series.Back figvr<?.— Tor n ontl ly and arrival ir dej>e>" of grcujs, see Annual Eepcrt for 1937 (table 86); for indexes of subproups, see Annual Report

for 1937 (table 87).



NOVEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS[Based on estimates of the Department of Agriculture, by States, as of November 1, 1939] i

[In thousands of units]

Federal Eeserve district

BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. Louis _Minneapolis. _ _ ___Kansas CityDallas.San Francisco

Total


BostonNew YorkPhiladelphiaClevelandRichmond _ .AtlantaChicagoSt. Louis _ .MinneapolisKansas CityDallasSan Francisco

Total

Cotton

Produc-tion1938

Bales

1,0482,623

2 3, 386

4673,819

600

11,943

EstimateNov. 1,

1939

Bales

1,3822,399

3 3, 381

4153,675

593

11, 845

Oats

Produc-tion1938

Bushels6,326

27, 70819, 22249,42520,94915,276

430, 76851, 571

235, 287134,53039, 56323, 214

1,053,839

EstimateNov. 1,

1939

Bushels6,765

27,38016,72346,24021,84814,606

368,45242,659

253,13076,90835, 36331,156

941, 230

Corn

Produc-tion1938

Bushels7,633

29,31752, 521

199, 591138, 232194,289

1,038, 749332,179227,136224, 284

91, 5776,730

2, 542, 238

EstimateNov. 1,

1939

Bushels7,663

27, 34350,942

208, 517139, 741146, 651

1,124, 515337,888277,850170, 50592, 550

6,898

2, 591,063

Tame hay

Produc-tion1938

Tons3,5235,7372,3765,4783,7293,419

18, 3796,825

10,7457,0021,403

11,683

80, 299

EstimateNov. 1,

1939

Tons3,3394,4701,9545,0133,4713,198

17, 3967,1039,8686,4331,351

11,427

75,023

Winter wheat

Produc-tion1938

Bushels

8,32419,81052, 95627, 2636,572

67, 73466,08130, 268

287, 75836,02083,851

686, 637

EstimateNov. 1,

1939

Bushels

6,87617,06741, 69224,092

5,52156, 47455,90324,788

223,16930,40264,726

550, 710

Tobacco

Produc-tion1938

Pounds22,847

1,84232,110

105,694746,014188,189

33, 239241, 254

2,7334,612

1, 378, 534

EstimateNov. 1,

1939

Pounds34,8532,277

36,085115,981977,060196,16433,364

256,4322,8094,384

1, 659,409

Spring wheat

Produc-tion1938

Bushels68

108139120

1,847143

189, 58810,148

10241, 901

244,164

EstimateNov. 1,

1939

Bushels6374

16587

1,92297

152,9334,918

9728, 379

188, 735

White potatoes

Produc-tion1938

Bushels47,31632,12322,99620,55427, 26115,46653, 45713,97843,34726,1603,778

65,181

371,617

EstimateNov. 1,

1939

Bushels47,35930,08121,74520,30123,14614,58948, 95411,86942, 51729,1573,393

68,654

361, 765

1 Figures for spring wheat, oats, and tame hay from estimates for Oct. 1, for winter wheat from Aug. 1. No estimate made for Nov. 1.2 Includes 16,000 bales grown in miscellaneous territory.3 Includes 18,000 bales grown in miscellaneous territory.



STATISTICS FOR FEDERAL RESERVE CHART BOOK

Chartbookpage

1939

Oct.18

Oct. Nov.25 1

Nov. Nov.15

Chartbook

1939

Aug. Sept. Oct

WEEKLY FIGURESRESERVES, GOLD, AND

CURRENCY

Reserve bank credit—total._ 3, 5Bills discounted 5Bills bought 5U. S. Gov't securities... 5

Gold stock 3Money in circulation 3, 9Treasury cash 3Treasury deposits 3Member bank balances 3, 6Required reserves e 6Excess reserves—total2 7

New York City 2 7Chicago2 7Reserve city banks 2 7Country banks 2 7

REPORTING MEMBER BANKS

Total, 101 cities:Loans and investments. 14

Investments 14Loans. 14

Adjusted demanddeposits 15

Time deposits 15U. S. Gov't deposits 15Domestic bank balances 15Foreign bank balances._ 15

New York City:U. S. Gov't obligations.. 16Other securities 16Commercial loans 16Brokers' loans 16

100 cities outside New York:U. S. Gov't obligations.. 17Other securities 17Commercial loans 17

MONEY RATES AND SECURITYMARKETS

F.R.bankdiscountrate,N.Y. 19Commercial paper 19Bankers' acceptances 19U. S. Treasury bills 21U. S. Treasury notes 21U. S. Treasury bonds 21, 25Corporate Aaa bonds 25Corporate Baa bonds 25

Stock prices, total < 27, 29Industrial 27Railroads 27Public utilities 27

Volume of trading 2 (mill,shares) 29

Brokers' loans (mill, dollars) 29

BUSINESS CONDITIONS

Wholesale commodity prices:4

All commodities 33Farm products 33Foods 33Other commodities _ 33

Steel plant operations(% of capacity) 38

Automobile production(thous. cars) 38

Electric power production(mill. kw. hrs.) 39

Total freight-car loadings(thous. cars) 39

Wednesday figures; in billions ofdollars

2.82.01

(l)

2.7517.007.332.22.35

11.916.405.543.00.511.31.72

22.5614.148.42

18.575.24.547.88.80

4.431.191.66.43

6.372.152.62

2.77.01

2.7417.047.302.23.33

11.956.425.593.02.531.34.70

22.6614.188.48'

18.725.25.547.85.82

4.501.171.66.47

6.352.152.63

2.77.01

2.7217.107.352.25.35

11.816.44

P5.502.92.541.34P. 70

22.7314.218.52

18.565.25.547.95.73

4.581.151.67.47

6.342.152.64

2.72.01

2.6917.137.412.26.35

11.756.40

P5. 362.77.521.34p. 72

22.8414.318.52

18.665.25.547.95.72

4.641.191.67.47

6.332.152.66

2.72.01

2.6517.247.382.34

.5611.596.42

P5.202.71

.501.28P. 71

23.0114.478.55

18.605.26

.538.12

.71

4.731.191.68.46

6.402.15

Averages of daily figures*; per centper annum

1.00.69.44.05.702.553.144.88

1.00.69.44.05.652.513.094.84

1.00.69.44.05.692.523.074.83

1.00.69.44.05.682.513.014.85

1.00.63.44.05.63

2.472.994.87

Wednesday figures; in unit indicated

961133386

1.15548

971153488

1.31593

951123287

1.21603

941113287

1.16594

941103187

Figures for week3; in unit indicated

79.467.573.284.1

90.3

70.1

2,494

861.2

79.267.272.384.2

90.2

78.2

2,539

834.1

79.367.572.384.4

91.0

82.7

2,537

805.9

79.367.872.484.4

92.5

86.2

2,514

786.0

79.167.372.384.4

93.5

86.7

2,514

771.4

v Preliminary. r Revised. • Estimated.1 Less than $5,000,000.» Averages of daily figures, see footnote1.»Figures are shown under the Wednesday date included in the weekly period.«Index numbers, 1926=100.• Adjusted for seasonal variation.

MONTHLY FIGURESBUSINESS CONDITIONS

Wholesale commodity prices:4

United States:All commodities 31, 32Farm products __ 31Foods 31Other commodities... 31

England 32France 32Germany ___ 32

[ndustrial production « 35Manufacturing production:6

Total. . __ 37Durable6 37Nondurable6 37

Factory employment 43Factory payrolls.__ 43Freight-car loadings6 45Department store sales 6 47Department store stocks 5 47

Construction contracts awarded:7

Total _Eesidential. _Other

xports and imports:Exports (incl. re-exports).General imports __Excess of exports

Income payments:Total6

Total unadjustedSalaries and wages 5

Other *iash farm income:

TotalCropsLivestock and products. .Government payments. . .

OTHER

entral gold reserves:United StatesEnglandFranceNetherlands

U. S. Gov't interest-bearingdebt—total

BondsNotesBillsSpecial issues

414141

494949

50505050

51515151

2020202020

QUARTERLY FIGURES

Domestic corporation securityissues, total

NewRefunding

Customers' rates:8

New York City7 other Northern and

Eastern cities11 Southern and Western

cities

23

23

23

Index numbers1923-25=100

75.061.067.280.179.297 079.7103

104436296.489.8708967

79.168.775.182.184.9

79.5111

1114863100.093.6779168

79.467.173.383.8

P89. 3

P120PhiP 6 3P103. 3P101. 3

809069

In millions of dollars

299123176

25117675

5,8115,4003,6652,146

64329330842

297125172

289181107

5,9006,0103,6742,226

84744433766

P314P124P190

P332P215P117

P6, 009P6, 204P3, 791v2, 218

47433882

In billions oj dollars

16.651.162.71

.77

40.3527.317.241.314.49

Jan.-Mar.1939

16.930)2.71

.75

40.3427.357.231.314.46

Apr.-June1939

17.090)2.71P. 76

40.5327.397.231.414.50

July-Sept.1939

In millions 0] dollars

27682193

••662

130-532

'648'92

••556

Per cent per annum

2.13

3.05

3.77

2.15

3.05

3.62

2.04

2.78

3.31

• Points in total index of manufacturing production.f Three-months moving average adjusted for seasonal variation.« Revised series. See pp. 963-969 of the November 1939 BUL-

LETIN.

NOTE.—Copies of this chart book can be obtained at a price of 50 cents,time. The latest figures appear on p. 1132 of this BULLETIN.

Banking statistics for call report dates are published from time to



BANKING STATISTICS FOR CALL REPORT DATES—CHART BOOK SERIES[In billions of dollars]

Chartbookpage

1937

Mar.31

June30

Dec.31

Mar. June30

Sept.28

Dec.31

1939

Mar.29

June30

Oct.

All banks in the United States:Total deposits and currency..Time depositsDemand deposits adjusted..._Currency outside banks

Member banks:Demand deposits adjusted-Time depositsInterbank balances.. _Loans and investments

Investments, total.U. S. Government obligations, total

Direct obligations..Guaranteed obligations

Other securities, totalState and local government securities..Other domesticForeign securities

Loans, total...Security loans, total12

Brokers' loansLoans on securities (excluding brokers' loans;

Real estate loans IOther loans, total i J

Commercial loans 2Open-market paperLoans to banksAll other loans*

11111111

1112131312131313

11121313

12,1312131313

56.7925.6925.235.42

21.3511.165.75

32.53

18.8312.7210.861.866.112.333.53.25

13.704.281.422.822.446.976.22.71.10

57.4225.9625.265.53

21.4011.355.30

32.74

18.4512.6910.871.825.772.133.40.23

14.294.371.542.832.517.416.66.64.12

56.8326.2624.055.69

20.3911.525.44

31.75

17.7912.3710.571.805.422.033.21.18

13.963.70.95

2.752.557.717.00.64.07

56.7826.3424.135.50

20.5111.595.62

31.52

17.9812.4510.631.835.522.193.15.18

13.553.54.88

2.672.567.456.75.61.10

56.7426.2724.395.47

20.8911.566.10

30.72

17.7812.3410.222.135.442.133.13.18

12.943.32.70

2.612.617.016.40

.49.12

57.6426.1825.195.49

21.6011.466.09

31.63

18.6913.0110.712.305.682.303.19.18

12.943.30.71

2.592.666.976.36.48.13

59.1226.3026.105.82

22.2911.516.51

32.07

18.8613.2210.882.345.642.453.01.18

13.212 1.75

.972.782.72

2 8.742 5.45

.44

.1232.73

•59.1726. 47

P26. 13P5.69

22.3611.606.82

32.10

19.0513.3510.692.665.702.552.96.18

13.051.57.84.73

2.758.735.53.42.10

2.67

*60.95P26. 72J>27. 39P6.05

23.5911.727.10

32.60

19.4613.7810.952.835.692.552.94.19

13.141.47.73.74

2.838.855.57.42.06

2.80

, 990J>26,80029, 170*>6, 230

25.1211.75<8.2533.08

19.6113.8110.892.925.792.76

)

13.47

p Preliminary.1 In chart 12 loans to banks on securities are included in the total of "security loans" prior to June 30, 1937 and in the total of "other loans"

since that date.2 Figures are reported on somewhat different basis beginning December 31, 1938. For detailed explanation of the changes and for estimates

on old basis as of December 31, 1938, see BULLETIN for April 1939, page 332.3 Not originally plotted in chart book.4 Partly estimated.5 Detailed breakdown of loans and investments now available on June and December dates only.


INTERNATIONAL FINANCIAL STATISTICS

1133



GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS


End of monthTotal i

(52coun-tries)

Countries in Tripartite Accord

UnitedStates

UnitedKing-dom

France Bel-gium

Neth-er-

lands

Switzerland

Na-tionalBank

B.I.S.

Other countries

Ar-gen-tina

BrazilBrit-ish

IndiaBul-garia

Can-ada Chile China

1934—December_1935—December.1936—December.1937—December.1938—November.

December.1939—January-

February .MarchAprilMayJuneJulyAugustSeptember.October_-_

21,05121, 60422, 63023, 964

25, 28725, 468

24,00324,17524, 38724, 96425,14025, 29025, 51226,118

P25, 2352 . 277

8,23810,12511, 25812, 760

14, 31214, 512

14, 68214, 87415, 25815, 79115,95716,11016, 23816, 64616, 93217,091

1,5841,6482,5842,689

2,6902,690

1,0421,0421,0661,0661,0671,0671,1621,162

11

5,4454,3952,9952,564

2,4352,435

2,4352,4352,4352,5742,5742,5742,5742,7142,7142,714

590611632597584581582588518520524540573614615611

573438490930

1,008995995974909834823800769769752

*>757

624454655648

699699699680640598598598595585585579

403444501469434431431431428428428428427431P431P431

275275275274274274274274274274274274274274*>274P274

191920242424242424242424242424P24

134189188184186192197206210212214213212218218212

1081618181920212121212121P21

End ofmonth

Other countries—Continued

Co-lombia

Czecho-slo-

vakiaDen-mark Egypt Ger-

many2 Greece Hun-gary Italy 3 Japan Java

Mex-ico

NewZea-land

Nor-way Peru Po-

land

1934—Dec...1935—Dec...1936—Dec...1937—Dec...1938—Nov...

Dec...1939—Jan

Feb...Mar...April..May..June...July...Aug. _.Sept...Oct....

1121129192

8383838367666562606058

5555555555555555555555555555

P55

403426242727272729293131302828P28

518270208210210193193193193193193193193193193193

394425463261164164164164164164164164164164

61849882

9694969696107107107107107107P107

1920202019201919191919191919

P19

96847583

8485

8585858484848484

End of month

1934—Dec.1935—Dec.1936—Dec. _1937— Dec.1938—Nov..

Dec.1939—Jan..

Feb..Mar.AprilMay-June.July.Aug..Sept.Oct..

Other countries—Continued

Portu-gal

68

69

69

Ruma-

104109114120132133

133134134135136137137148149

P149

SouthAfrica

184212203189220220220219221218218219219222234P234

Spain *

740735718718525525525525525525525525525525525

Swe-den

159185240244321321331331332339344346348355357332

Tur-key

22242629

2929

293030303030303029P29

Uru-guay

6868

P68

Yugo-slavia

16othercoun-tries «

154158175169125125127126124126126133135136

P131P131

Government gold reserves1 not includedin total for 52 countries

End ofmonth

1934—Dec...1935—Dec...1936—Dec. _1937—Dec...1938—Mar...

June . .Sept...Oct....Nov.__Dec. . .

1939—Jan... JFeb.._Mar...Apr. ..May_.June.-July__Sept. _

UnitedStates

80

"154"

"~85"

UnitedKing-dom

2 9343 1, 395

1,489

759

()1,732

France

* 103130331381465559455477

Bel-g ium

3153

81

"62

p Preliminary.1 Data reported monthly incomplete. For additional data see section at end of table.1 Figure for May 1939 officially reported and carried forward.3 Figure for Mar. 1937 officially reported as of 20th of month and carried forward through

Nov. 1937. Figures for Dec. 1937 through Mar. 1938 officially reported and carried forwardthrough Nov. 1938. Figure for Dec. 1938 officially reported and carried forward.

4 Figure for Aug. 1, 1936, carried forward through Mar. 1938; Apr. 1938 figure officially re-ported and carried forward.

& These 16 countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, BelgianCongo, Bolivia, Danzig through Aug. 31, 1939, Ecuador, El Salvador, Estonia, Guatemala,Finland, Latvia, Lithuania, Morocco, and Siam.

NOTE.—For back figures and description of table see BULLETIN for June 1933, pp. 368-372,and July 1936, pp. 544-547; also see footnotes to table in BULLETIN for Aug. 1936, p. 667, and Dec.1937, p. 1262.

1 Reported at infrequent intervals or on de-layed basis: U. S.—Exchange Stabilization Fund(Special A/c No. 1); U. K.—Exchange Equaliza-tion Account; France—Exchange StabilizationFund and Rentes Fund; Belgium—Treasury.Gold in Swiss and Dutch Funds and in someother central reserves not reported.

2 Figure for Mar. 1937, first date reported.3 Figure for Sept. 1937.4 First date reported.6 Transferred: from Bank to Account, $1,648,

000,000 on Jan. 6, and $1,162,000,000 on Sept. 6,1939; from Account to Bank, $26,000,000 on Mar.1, and $94,000,000 on July 12, 1939.



GOLD PRODUCTIONOutside U. S. S. R.[In thousands of dollars]

Year or month

Estimatedworld

produc-tion

outsideU.S.S.R.

Production reported monthly-

TotalAfrica

SouthAfrica

Rho-desia

WestAfrica

BelgianCongo

North and South America

UnitedStatesi Canada Mexico Colom-

bia Chile

Far East

Austra- Britishlia India

1929..1930..1931..1932..1933..

382, 532401, 088426,424458,102469,257

352, 237365, 258386, 293413,459411, 208

$1=25-8/10 grains of gold 9/10 fine215, 242221, 526224,863238,931227, 673

11, 60711,47611,19312,00013, 335

4,2974,9955,5245,9926,623

2,3602,6993,2243,6423,631

i. e., an ounce of fine gold=$20.6745, 65147, 24849, 52750, 62652,842

39, 86243, 45455, 68762, 93360,968

13, 46313,81312,86612,07013,169

2,8233,2814,0165,1326,165

683428442788

3,009

8,7129,553

12,13414, 56316,873

1933..1934..1935_.1936..1937..1938..

1938—JulyAugustSeptember.OctoberNovember .December. .

1939—JanuaryFebruary . . .MarchAprilM a yJuneJulyAugustSeptember..

794,498823,003882, 533971,514

1, 041, 9871,118,480

98, 55198,08997, 43996, 93898, 78798/845

94,83590, 96497, 627

'94,540r98, 484'99, 450102, 680

P107, 322P106, 629

696, 218707, 288751, 979833, 088892, 535957,175

84, 90884,14083, 27582, 95484, 80284, 234

80,15976, 74982, 65679, 72883, 41583, 54187,078

P91, 502P90, 513

$1=15-5/21 grains of gold 9/10 fine; i. e.,385,474366, 795377,090396,768410,710425, 649

36, 22236,62236, 23736, 44935, 84236, 007

36,18834, 50537, 55835, 61337, 97037,06537, 95238, 494

P37, 444

22, 57824, 26425, 47728,05328, 29628, 532

2,4102,4152,3652,4452,3812,318

2,2872,0692,2022,2522,3552, 3692,395

P2, 431P2, 431

11,21412,15313, 62516, 29520, 78424, 670

2,0672,0532,0482,1742,2042,240

2,2302,2212,3462,3492,3232,2772,3952,379

P2, 379

6,1486,5497,1597,3868,0188,470

716716743725728751

753688767729779756739731

*>731

89,467108,191126, 325152, 509168,159178,143

16, 78116, 59016, 93716, 32018, 57916,068

14,91913,15314,36415, 26015,16714, 46016, 09916, 79619,576

an ounce of fine gold=$S5103,224104,023114,971131,181143, 367165, 379

14, 68914,57114, 29114, 44914, 44515, 231

14,39613, 68414,49814,23815,13315,28715,40215, 722

P15, 050

22, 29723,13523,85826, 46529, 59132,306

4,2412,9412,0622,2652,3532,700

1,7623,4212,5421,7331,794

. 3,2163, 6276,519

PS, 529

10,43812,04511,51513, 63215,47818, 225

1,7481,5151,8121,6221,6281,499

1,9531,5621,7521,5131,6141,5511,5511,7351,803

5,0948,3509,2519,0189,544

10,290

752986

1, 019906930

1,033

655568

1,198830696968

1,583Pl,059

*>989

28, 56830, 55931, 24040,11846, 98254, 264

4,3304,7714,8164,6424,7835,393

4,0764,0164,4924,3014,6494,6844,399

P 4 , 714P 5 , 694

7,5086,7856,8156,7826,919

11,71511, 22311,46811,66311,60711,247

951958946956930995

940863938912936910936923

Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changesirregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annualproduction, in millions of dollars, as follows—at $20.67 per fine ounce: 1929, $15; 1930, $31; 1931, $34; 1932, $40; 1933, $56; at $35 per fine ounce: 1933, $95;1934, $135; 1935, $158; 1936, $185; 1937, $180; 1938 (preliminary), $184.

p Preliminary.r Revised.i Includes production in the Philippines.NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETINS for March 1939, p. 227, Febiuary 1939, p. 151,

June 1938, pp. 539-540, and April 1933, pp. 233-35. For annual figures of world production back to 1873 (including Russia-U.S.S.R.), see AnnualReport of Director of Mint for 1936, pp. 108-109, 1937, pp. 104-105 and 1938, pp. 102-103. Figures for Canada beginning January 1939 are subject toofficial revision.

GOLD MOVEMENTS[In thousands of dollars at approximately $35 a fine ounce]

Year or month

1934 11935.1936.1937.

1938—AugustSeptember..OctoberNovember..December.

1939—JanuaryFebruary..MarchAprilMayJuneJulyAugustSeptember.October

United States

Totalnet

importsor net

exports

1,131,9941, 739,0191,116, 5841, 585, 5031,973, 569

165, 973520,896562, 366177, 768240, 526

156, 345223, 281365, 384605, 797429, 404240,430278, 636259,921326,07469,726

Net imports from or net exports (—) to:

UnitedKing-dom

499,870315, 727174,093891, 531

1, 208,728

91,227377, 984443, 40399,145101, 707

52,050165, 377250,042384,925302,667128,196177,805163,738162,45010,182

France

260, 223934, 243573, 671

-13,71081,135

4,721

42,95917

37,395

1,1,400

816213212

86

Bel-gium

8,9023

3, 35190,85915,488

3,213

1,979

1,6

37,17984, 60341, 651

Neth-er-

lands

94,348227,18571,006 26,461

163,049 60,146

47, 21941,83227, 24246,185

33, 67829, 25627,09844, 56440, 44955, 08145, 55422, 640

12,9£0

Swe-den

15,36011,5213,840

23,840

1Q

Swit-zer-land

12,402968

7,51154, 4521,363

11,136

-67

8,22755, 6802,2845,6445,628

1,482

Can-ada

86, 82995,17172, 648

111,48076, 315

14, 33338,14810, 8107,171

731

10, 8424,2206,8527,665

12,06617,19115,19634, 299

120,8379,940

Mex-ico

30,27013, 66739, 96638,48236, 472

3,1831,4462,2363,4572,550

2,3422,4963,8221,6492,0503,2804,1503,956

6531,794

Colom-bia

16, 94410,89911,91118, 39710, 557

2,11344

112,107

2,089

4,2342,1142,1172,1072,1232,1202,102

Philip-pine

Islands

12,03815, 33521,513 23,25, 427 34,27,880 39,

1,7722,7212,720V ""2,655

2,7542,7193,3262,1792,5943,8433,0222, 7753,9473,188

Aus-tralia

1,0293,498\ 2801,7131,162

2,7483,7753,294

6,585

4,3034,8445,2955,6775,034

5,4748,420

Japan

246, 464168,740

23, 49735, 0955,740

li, 425

37,8195,44611,4105,52810, 93114,09310,93810,93116,42512,497

BritishIndia

76,82075, 26877,89250, 76216,159

7603,8221,797

1175

3,6854,9443,3902,2442,7609,2594,0652,703

Allothercoun-tries

32, 31647,05439, 74330,179

! 68,376

3,8062,9824,768

219,1502 22, 207

5,1244,3984,391

» 7, 0733,9093,0726,4164,512

« 8, 5525 18,012

1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce.2 Figures for November and December 1938 include imports from Argentina of $14,112,000 and $17,710,000, respectively.«Includes $4,503,000 from Argentina.4 Includes $5,158,000 from Hong-Kong.5 Includes $6,363,000 from Italy; $4,087,000 from Hong-Kong.NOTE.—For gross import and export figures and for additional countries see table on p . 1104.



GOLD MOVEMENTS—Continued[In thousands of dollars at approximately $35 a fine ounce]

Year ormonth

19341935193619371938

1938—JuneJulyAugSeptOctNovDec

1939—Jan... _FebMarAprMay .JuneJulyAug

United Kingdom

Totalnet importsor netexports

(-)

716, 269369, 722

1,169, 931420, 427

-285, 638

89, 58024,119

-73,132-261,143-210,171- 9 6 , 508- 6 6 , 726

- 3 6 , 514-148,005-259, 984-121,188-294,077

- 5 1 , 591-147,332-318,511


UnitedStates

-497,166-435, 502-276, 830-834,009

-1,050,395

-20,811-10,529- 9 3 , 660

-360, 016-308, 528-105,220- 9 7 , 371

- 5 0 , 814-160,218-306, 839-357, 518-287, 762-127,293-182,145-223,370

France

348,190142,137756, 215541,18738,899

-6,137-997

- 5 , 726685

69, 604- 6 6758

Q

- 6 8-183

-1,431-262-412-3302,691

Ger-manyi

121,017- 4 , 72623, 29246,14733,173

5747

6,16414,3584,0776,0052,057

- 3 3118829

4, 018- 3 8- 1

1

Bel-gium

-13,585-17,476-15,133- 2 1 , 993348, 000

56, 76423, 212

-258120, 07533, 982

-2,328-898

211396

23, 477176, 451

2,008415196

-7,491

Nether-lands

32, 57510, 796

-21,215-16,572-46 , 463

-12,037-5,750

-10,041-7,498

535-5,245

9,990

-253779

1,03919,16449,00422,9688,856

-11,275

U.S.S.R.

931

199, 965115, 540

28,104

5,6658

5,649

5,6725,613

16, 866

5,631

Austra-lia

41, 79037, 98126, 72324,16527, 831

2,0242,4902,1022,839

705155528

681736

143

55

SouthAfrica,Rho-desia,WestAfrica

335,253404, 295488,814464, 837333, 750

40, 62331, 51631,19216, 8316,5302,6957,358

5,6713,4515,559

12, 65645, 39452, 63638, 42349,120

BritishIndia

206, 693181, 602128,42166, 33055, 744

3,7256,418

10, 3563,0234,2044,2601,815

304151

1,4174,8052,9752,3883,0784,606

OtherBritishcoun-tries

62,39732, 75428,06722,07920, 761

9,9296,5813,035

- 4 , 750-20 , 792

618531

1,374-1 ,101-1,148

4 -47 , 8751 -145, 856

911697

s-114,284

Swe-den

-50,661-10,129

- 8 1-89 , 371

- 7 , 673-11,429-11,151- 2 2 , 763- 4 , 671

- 3 , 790- 1

- 3 2-437

- 3 , 793- 2

-1,138- 4 , 966

Switz-erland

-9 ,12353, 4653,998

-16,596-78,029

- 5 , 407- 1 6 , 521-10,498- 2 1 , 980

2,8311,0171,511

704399

- 3 , 84573, 39432, 921

153-575

—4, 618

Allothercoun-tries

2 88, 22814,12637, 708

3-55,0324,922

421-920-312

-1,9551,3531,6031,347

3,7621,8473,618-4251,504

-3,318-14,393

- 8 , 980

Year ormonth

1934..1935..1936_.1937..1938..

1938—Aug...Sept . .Oct.__Nov. . .Dec.__

1939—Jan.. _Feb._.Mar.__Apr.__M a y . .J u n e . .J u l y . .Aug. . .Sept. _Oct.?..

Ger-many

Totalnet im-

portsor net

exports^()

-90 , 92042, 969

-1,868-3,718

- 3 5 , 224

-6, 864-36, 626-16,134-10,129-3, 765

33-11,940

9,9999,967

-5, 807-284

Switzerland

Totalnet

importsor netexports

()

-46,065-230, 788

122, 278-56,946-1,245

-1,3389,0241,454

913- 5 , 690

- 3 , 786-2,112

- 3 7 , 332-162,645

8,059-10,696

7,7655,275

- 2 , 730- 2 , 744


UnitedStates

-12,78464r

-9,127-51,1""-1,128

- 2- 7

-1,140228

- 2 1-10,786-54, 266- 2 , 329- 8 , 589- 2 , r •

2-1,506

-915

UnitedKing-dom

- 4 5 , 955-54,858-1,714

11, 94076, 620

10, 46415,940

90713

-1,854

-7631,547

-104, 650-5,419

931,0334,334

-1,030

France

-29,235-181,725

39, 305- 4 5 , 061-74 , 375

-8,382418

-61633

-139

54924

-1,990- 4 , 805

-1,153-1,929

- 4 5 7

Bel-gium

18, 397-13,940

14,53127, 739

-1,067

-1,283117

-158-117-166

-149-213

-1,509-864- 7 3

—91- 1

Italy

19,43125, 54251, 299-65711,314

-37o

1556

-57610, 81919, 585

o

10,8002,815-25

-4, 574

Neth-er-

lands

2,580342

4,6006,55325,125

3,824924

2,551994

- 2 , 884

- 2 , 294-1,581- 8 , 327-3,876

-718725355

1,23489

-1,372

Ger-many1

- 4 3- 9 , 607- 2 , 990-16,461-32, 745

- 6 , 2671,884- 5 6

-265-438

-1,274- 9 7

-14,830-2,431-1,138-3,116

-171-887-2431,830

Allothercoun-tries

1,543s 2, 812

9 26, 36810, 609

- 4 , 989

342-10,251

331

-209

- 7- 1 5

-860- 2 , 573

- 2 3 9

- 7 6- 2 4 4

-204- 1 1

2,744

British India

Totalnet

importsor netexports

()

-230, 720-161,872-121,066- 6 1 , 723-54 , 661

- 7 , 082-957

- 7 , 622- 2 , 283

211

-125-3, 288-5,113-3, 394-4, 202-2,049-10,264-5, 274

Goldproduc-tion inIndia

InIn-

dianre-

serves

11, 22311,46811, 66311, 60711, 247

958946956930995

940863938912937910

Increase in India:

Ingold

earmark-ed forforeignaccount

173- 6

-3

12,078

1,9095,6904,479

11, 4237,7494,8125,1971,8395,749942

2,512

Inprivatehold-ings 7

-219, 670-150,398-109,403-50,075-55,494

-6,124-11

- 8 , 575-7,043-3, 273

-10,608-10,174-8,984- 7 , 679-5,104-6, 888-10,270-6,863

p Preliminary. c Corrected.1 Beginning April 1938 figures refer to Greater Germany.2 Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000.3 Includes $67,655,000 exported to Central and South America.4 Figures for April and May include exports to Canada of $45,972,000 and $144,910,000 respectively.5 Includes net exports to Canada of $115,515,000.• Through March 1935 gold held by government; subsequently, gold held by Reserve Bank of India to which government gold was transferred.7 Figures derived from preceding columns; gold movement plus production minus increases in Indian reserves and gold earmarked for foreign

account in India.8 Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria.9 Includes net import of $26,555,000 from Czecho-Slovakia.NOTE.—Switzerland.—In some cases annual aggregates of official monthly figures differ somewhat from revised official totals published for year

as a whole.



INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATESNET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935

[In millions of dollars. Minus sign indicates net movement from United States]

From Jan. 2, 1935, through—

1935—Dec. 31 ,1936—Dec. 301937—Dec. 291938—Dec. 28

1939—Mar. 29 __ _June 28

Aug. 2 _Aug. 9Aug. 16Aug. 23Aug. 30 __

TABLE 1.—TOTAL

Total

1,412.52,608 43, 410. 33 779 2

4,134. 74, 595. 6

4, 637. 24, 664.84,711.84,830 04, 865. 3

CAPITAL MOVEMENT

Increase in foreign bankingfunds in U. S.

Total

603.3930.5

1,168. 51,432 7

1, 693. 02, 048. 3

2, 093. 92,139. 12,182. 22,287 32, 334. 2

Centralbankfunds

in N. Y.

9.881.1

243.9216 3

256.8361.8

327.1323.2305.5352 5371.6

Other

593.5849.4924.6

1,216.5

1,436. 21, 686. 5

1, 766. 81,815.81, 876. 71,934 91, 962. 6

Decreasein U. S.bankingfundsabroad

361.4431.5449.1478.1

550.5609.5

598.8612.0624.8635 1622.6

Foreignsecurities:

Returnof U. S.funds

125.2316.2583.2610.0

646.7664.5

680.2652.8654.5656 9657.8

Domesticsecurities:Inflow offoreignfunds

316.7917.4

1,162. 01, 210. 9

1,180. 61,199. 3

1,182. 21,176. 51,164.91,165.11,165. 7

Inflow inbrokeragebalances

6.012.947.547.6

63.974.0

82.184.585.485.585.0

TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTRIES

From Jan. 2, 1935,through—

1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28

1939—Mar. 29June 28

Aug. 2Aug. 9Aug. 16Aug. 23Aug. 30___ .

Total

1,412. 52, 608. 43,410. 33, 779. 2

4,134.74, 595. 6

4, 637. 24, 664. 84,711.84,830.04,865. 3

UnitedKing-dom

554.9829.3993.7

1,186.1

1, 203.11, 360. 2

1, 337. 71, 326. 51,341.61, 386. 41, 326. 3

France

210.2299.5281.7339.5

366.8439.7

441.9444.3451.0449.9473.4

Neth-er-

lands

114.5229.7311.9324. 6

383.6401.0

405.7409.7407.7408.8412.1

Switz-er-

land

130.4335.5607.5554.0

587.6599.2

606.8607.5600.6618.7647.2

Ger-many

36.683.1

123.9140.7

150.2149.5

151.5152.4151. 7149.8148.8

Italy

24.045.622.133.0

24.729.5

31.231.432.230.926.1

OtherEurope

130.0228.5312.2463.8

536.8604.2

617.3619.8635.4664.3665.1

TotalEurope

1, 200. 62,051. 32, 653.03, 041. 7

3, 252. 93, 583. 3

3, 592. 03, 591. 63, 620. 33, 708. 73, 699.1

Canada

0)150.5106.3157.2

185.1230.5

259.1267.1270.7275 829L8

LatinAmerica

70.9201.2410.6389.5

443. 5500.2

516.1521.7523.2530.2536.1

FarEast

128.3184.0224.6156.8

206.4223.8

207.2220.3236.1248.8259. 4

Allother

12.721.415.934.1

46.857.9

62.764.061.466.478.9


1935—Dec. 31___1936—Dec. 301937—Dec. 291938—Dec. 28

1939—Mar. 29June 28

Aug. 2Aug. 9Aug. 16Aug. 23Aug. 30

TABLE 3.—FOREIGN BANKING FUNDS IN UNITED STATES, BY

Total

603.3930.5

1,168. 51, 432. 7

1, 693. 02, 048. 3

2,093. 92,139. 12,182. 22, 287. 32, 334. 2

UnitedKing-dom

128.6163.5189.3366.7

401.8535.2

517.0511.7529. 5570.1522.3

France

129.6144.2111.8158.8

187.4252.3

252.1253.9262.6263.6283.7

Neth-er-

lands

55.765.976. 384.4

129.9132.0

138.9144.6143.0140.9144.8

Switz-er-

land

72.4109.8288.4203.7

233.4227.1

234.9234.6226.2243.0270.0

Ger-many

- . 82.79.6

- 9 . 8

-10.9-14.5

-15.3-15.5-15.7-17.5-18.5

Italy

7.323.06.93.8

- 3 . 9- 6 . 6

- 5 . 5- 5 . 2- 4 . 1- 5 . 2- 7 . 4

OtherEurope

60.779.7

109.4203.0

267.8320.0

332. 8335. 6350. 1379 2384*. 1

TotalEurope

453.5588.9791.7

1, 010. 6

1, 205. 51, 445. 5

1, 454. 91, 459. 71,491.61, 574.11, 579. 0

COUNTRIES

Canada

46.086.876.3

135.1

136.5191.5

205.4232.4235.6240.2256.1

LatinAmerica

33.5149.3166. 3134.0

179.8242.0

258.6261.4260.7265.5268.9

FarEast

58.890.4

126.2132.7

139.9131.5

133.8142.7154. 5162.9172.8

Allother

11.515.28.0

20.4

31.337.8

41.242.939.844.757.5


1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28

1939—Mar. 29June 28


TABLE 4.—UNITED STATES BANKING

Total

361.4431.5449.1478.1

550.5609.5

598.8612.0624.8635.1622.6

UnitedKing-dom

208.8178.0207.4204.5

209.2236.7

239.3237.8234.2236.5225.2

France

48.162.065.365.5

64.968.1

70.371.169.867.970.0

Neth-er-

lands

- . 4- 3 . 3- 4 . 4- 6 . 9

- 1 . 5- 1 . 0

- 4 . 4- 6 . 0

4.78.48.4

Switz-er-

land

1.62.72.62.6

4.53.6

4.95.05.45.75.6

Ger-many

29.766.0

105.1140.3

149.8153.8

157.5158.3158.2158.1158.2

FUNDS

Italy

13.716.36.5

13.9

10.817.7

17.917.717.417.214.6

ABROAD, BY COUNTRIES

OtherEurope

8.822.026.933.0

30.939.9

40.640.640.840.835.1

TotalEurope

310.2343.7409.3453.0

468.6518.8

526.1524.5530.6534.6517.2

Canada

- 4 . 636.9

-21.730.6

49.942.2

39.648.348.849.552.3

LatinAmerica

20.124.951.666.8

66.555.7

54.156.258.759.961.9

FarEast

37.330.418.7

-65.0

-28.1- 2 . 9

-18.7-14.3-10.8- 6 . 5- 5 . 7

Allother

- 1 . 6- 4 . 4- 8 . 7- 7 . 2

- 6 . 4- 4 . 3

- 2 . 3- 2 . 7- 2 . 4- 2 . 5- 3 . 0

i Inflow less than $50,000.NOTE.—Statistics reported by banks, bankers, brokers, and dealers. For back figures and description of the statistics, see BULLETIN for April

1939, pp. 284-296, April 1938, pp. 267-277, and May 1937, pp. 394-431.



INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—ContinuedNET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued

[In millions of dollars. Minus sign indicates net movement from United States]

T A B L E 5 .—FOREIGN SECURITIES, BY COUNTRIES

Net Purchases by Foreigners

From Jan. 2,1935,through—

1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28_

1939—Mar. 29June 28


Total

125.2316.2583.2610.0

646.7664.5

680.2652.8654.5656.9657.8

UnitedKing-dom

67.8116.1136.8129.1

127.6128.2

126.7126.4126.6127.2127.4

France

6.818.222.826.2

26.328.2

28.328.428.328.328.3

Neth-er-

lands

7.410.421.227.3

28.729.4

29.729.729.829.829.7

Switz-er-

land

- 1 . 213.730.437.1

38.441.7

42.342.342.543.043.2

Ger-many

13.322.526.633.1

34.935.8

36.036.136.236.336.4

Italy

2.99.4

13.520.5

23.123.8

24.324.324.324.324.4

OtherEurope

46.187.9

115.2165.9

174.9180.4

180.6180.7181.2181.5181.8

TotalEurope

143.1278.3366.4439.1

453.8467.4

468.0468.0468.8470.3471.2

Canada

-39.71.7

10.5-38.9

-25.8-26.5

-13.5-41.6-41.3-41.2-41.5

LatinAmerica

12.715.7

175.0166.3

172.6176.0

177.5177.8178.0178.6178.8

FarEast

7.917.024.533.8

36.237.1

38.238.538.738.838.8

Allother

1.13.56.89.7

9.910.4

10.010.110.310.410.5

TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIES

Net Purchases by Foreigners


1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28

1939—Mar. 29June 28


Total

316.7917.4

1,162.01, 210. 9

1,180. 61,199. 3

1,182. 21,176. 51,164. 91,165.11,165. 7

UnitedKing-dom

149.8367.7448.7472.6

448.3442.0

434.7431.5431.7432.5433.5

France

23.464.770.376.5

72.374.4

73.572.471.772.372.2

Neth-er-

lands

50.5157.6213.8212.9

217.7231.0

229.5231.1220.7220.0220.6

Switz-er-

land

55.1200.2275.3301.7

301.7315.0

311.3311.0311.0312.2313.4

Ger-many

-5 .4- 7 . 5

-17.4-22.7

-23.4-25.2

-26.5-26.6-26.8

26.9-27.1

Italy

- . 1- 3 . 3-4 .9-5 .4

- 5 . 5- 5 . 5

-5 .6-5 .6-5 .6-5 .6- 5 . 7

OtherEurope

12.938.555.756.6

56.556.9

56.055.655.455.456.7

TotalEurope

286.2818.0

1,041.61,092. 3

1,067. 61, 088. 4

1, 072. 91,069. 41,058. 21,059. 81,063. 6

Canada

2.832.637.627.8

18.813.9

18.918.117.416.913.0

LatinAmerica

3.715.518.223.4

24.625.7

25.224.624.624.624.7

FarEast

21.444.154.756.4

57.957.6

51.951.151.350.550.6

Allother

2.67.19.8

11.0

11.713.7

13.313.213.313.313.7

TABLE 7.—BROKERAGE BALANCES1, BY COUNTRIES


1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28

1939—Mar. 29June 28


Total

6.012.947.547.6

63.974.0

82.184.585.485.585.0

UnitedKing-dom

(2)4.0

11.513.2

16.318.1

19.919.219.620.117.8

France

2.410.411.512.6

16.016.8

17.718.518.617.719.1

Neth-er-

lands

1.3- . 95.06.8

8.89.6

12.010.39.69.88.6

Switz-er-

land

2.59.1

10.88.8

9.611.9

13.414.515.514.715.0

Ger-many

- . 2

- . 2- . 3

- . 2(2)

2-.2_ 2

Italy

. 1

. 3

. 1

.2

.2

. 1

.2

.2

.2

.22

OtherEurope

1.4.4

5.05.3

6.67.0

7.37.37.97.57.4

TotalEurope

7.622.644.046.7

57.463.2

. 70.270.171.269.868.0

Canada

- 4 . 5- 7 . 6

3.52.6

5.69.3

8.810.010.210.411.9

LatinAmerica

1.0-4 .2- . 5- . 9

.1

.8

.71.71.31.71.9

FarEast

2.92.1.5

-1 .0

.6

.4

1.92.32.33.23.0

Allother

- . 9(3)(3)

.2

.3

.3

.5

.4

.4

.4

.3

1 For explanation see BULLETIN for May 1937, pp. 395-396.2 Inflow less than $50,000.s Outflow less than $50,000.



INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—ContinuedOUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES

[Outstanding amounts in millions of dollars]

TABLE 8.—SHORT-TERM LIABILITIES TO FOREIGNERS, BY COUNTRIES

Date TotalUnitedKing-dom

FranceNeth-

er-lands

Switz-erland

Ger-many Italy Other

EuropeTotal

Europe Canada LatinAmerica

FarEast

Allother

Reported by Banks in New York City

1929—Dec. 31__.1930—Dec. 31___1931—Dec. 30. __1932—Dec. 28___1933—Dec. 27. __1934—Nov. 28i.

1934—Dec. 5 K.1935-Jan. 2 . . . .

Dec. 31_.1936—Dec. 30__1937—Dec. 29__1938—Dec. 2 8 -

2, 672.72, 335.01, 303. 5

745.6392.0466.7

301.5214.5104.9169.748.959.1

923.7799.4549.271.127.032.7

99.1122.244.611.98.0

12.7

105.2222.266.078.011.59.7

204.5161.041.132.917.525.8

157.4111.233.239.811.714.3

371.3281.3122.266.231.141.7

2,162.81,911.7

961.2469.6155.7196.0

241.8216.8148.398.286.191.9

188.2130.8103.3121.796.7

106.6

49.038.269.043.542.760.3

Reported by Banks in United States

1939—Mar. 29..June 28. _.

Aug. 2__.Aug. 9....Aug. 16__Aug. 23...Aug. 30...

584.8597.0

1,200.21,491.61, 729. 62,003.9

2, 264. 22, 619. 5

2, 665.12, 710. 32, 753. 42, 858. 62, 905. 4

79.676.9

205.5235.7261.5438.8

473.9607.4

589.1583.8601.7642.3594.5

36.133.9

163.5176.3143.9190.9

219.5284.4

284.2286.0294.7295.7315.9

13.512.968.678.889.198.4

143.9146.0

152.9158.5157.0154.8158.7

12.113.786.1

123.5302.1217.4

247.1240.8

248.5248.3239.8256.7283.6

28.429.929.032.039.019.9

18.715.1

14.314.213.912.111.1

16.818.826.141.725.722.6

14.812.2

13.313.614.613.611.4

40.646.8

107.5126.3156.0249.9

314.7366.9

379.7382.5397.0426.1431.0

227.1232.9686.3814.3

1,017.11, 237.8

1, 432. 71, 672. 7

1, 682.11, 686. 91, 718. 81,801.31, 806. 2

103.399.3

145.3186.1175.6235.2

236.6291.7

305.5332.5335. 8340.4356.2

117.4122.8156.3263.9280.9254.9

300.7363.0

379.5382.3381.6386.4389.8

125.1130.1188.9200.2236.0243.7

250.9242.5

244.8253.7265.5273.8283.7

31.037.521.612.610.911.9

12.012.023.427.120.032.4

«= 43. 349.7

53.254.951.856.769.4

TABLE 9—SHORT-TERM FOREIGN ASSETS, BY COUNTRIES

Date TotalUnitedKing-dom

FranceNeth-

er-lands

Switz-erland

Ger-many Italy Other

EuropeTotal

Europe Canada LatinAmerica

FarEast

Allother

1931—Dec. 301932—Dec. 281933—Dec. 271934—Nov. 281. __

1934—Dec. 5 2__1935—Jan. 2. . . .

Dec. 31_.1936—Dec. 30_.1937—Dec. 29__1938—Dec. 28__

1939—Mar. 29..June 28—

Aug. 2 . . .Aug. 9_...Aug. 16...Aug. 23...Aug. 30...

1,103.3 I937.9898.8827.1 I

Reported by Banks in New York City

166.287.3

192.5201.3

29.562.966.994.1

20.913.018.415.9

12.66.2

12.38.5

467.2434.9260.9178.8

18.711.816.710.7

149.297.083.260.2

854.3713.1651.0569.5

58.142.232.384.4

136.5155.2159.7124.4

41.824.049.746.2

Reported by Banks in United States

1,137. 81,139. 9

778.6672.6655.0628.0

553.6494.6

505.3492.1479.3469.0481.4

266.4296.988.1

114.184.887.7

83.055.4

52.854.458.055.766.9

108.280.532.516.813 513.3

13.810.7

8.57.69.0

10.88.7

19.218.619.021.923.025.5

20.119.7

23.124.713.910.210.3

8.38.26.65.45.55.4

3.64.5

3.13.12.72.32.5

239.6231.7202.0165.1126.190.9

81.477.4

73.772.873.073.173.0

26.527.213.510.920.813.3

16.49.5

9.39.59.8

10.012.6

81.380.071.257.852.946.7

48.839.9

39.239.238.939.044.7

749.5743.2433.0392.1326.5282.8

267.1217.0

209.7211.3205. 2201.1218.6

91.296.3

100.959.4

118.065.7

46.354.0

56.748.047.546.744.0

170.7174.6154.5141.1114.499.2

99.5110.3

111.8109.8107.3106.1104.1

118.1117.480.167.278.9

162.6

125.7100.5

116.3111.9108.4104.1103.3

2.63.56.22. 6

8.38.5

10.112.917.215.7

14.912. 8

10.811.110.911.011.5

c Corrected.1 Last report date on old basis.2 First report date on new basis.



CENTRAL BANKS

Bank of England

(Figures in millions ofpounds sterling)

1929—Dec. 25.1930—Dec. 31.1931—Dec. 30.1932—Dec. 28.1933—Dec. 27.1934—Dec. 26.1935—Dec. 25.1936—Dec. 30.1937—Dec. 29.

1938—Nov. 30.Dec. 28.

1939—Jan. 25___Feb. 22. .Mar. 29..April 26_.May 31 . .June 28..July 26. _.Aug. 3O._Sept. 27..Oct. 25...

Assets ofissue dept.

Gold

145.8147.6120.7119.8190.7192.3200.1313.7326.4

326.4326.4

2 126. 4126.4

3 226. 2226.2226.2226.4

4 246.4263.0

5.1.2

Otherassets i

260.0260.0275.0275.0260.0260.0260.0200.0220.0

200.0230.0

400.0400.0300.0300.0300.0300.0300.0300.0580.0580.0

Assets of banking department

Cash reserves

Coin

1.0.5

1.2

.71.01.1

Notes

26.338.831.623.658.747.135.546.341.1

45.651.7

62.653.744.237.126.427.435.533.538.353.0

Dis-countsand ad-vances

22.349.027.318.516.87.68.5

17.59.2

17.628.5

18.817.54.86.28.06.88.06.42.5

Securi-ties

84.9104.7133.0120.1101.498.294.7

155.6135.5

110.890.7

103.9100.6124.8129.5140.7136.7128.0137. 8144.2127.7

Notecircula-

tion

379.6368.8364.2371.2392.0405.2424.5467.4505.3

480.8504.7

463.8472.7482.0489.1499.8499.0510.9529.5541. 8527.1

Liabilities of banking department

Bankers'

71.0132.4126.4102.4101.289.172.1

150.6120.6

97.1101.0

118.2103.198.591.482.4

101.491.490.1

107.1116.8

Deposits

Public

8.86.67.78.9

22.29.9

12.112.111.4

23.115.9

12.916.321.827.038.315.426.031.119.812.6

Other

35.836.240.333.836.536.437.139.236.6

37.236.8

36.735.136.337.637.137.036.739.040.539.2

Otherliabili-

ties

17.918.018.018.018.018.018.018.018.0

17.818.0

18.118.218.217.717.817.918.118.218.317.7

Assets

Bank of France

(Figures in millions of francs) Gold£

1929—Dec. 27-1930—Dec. 26. _1931—Dec. 30__1932—Dec. 30__1933—Dec. 29__1934—Dec. 28_.1935—Dec. 27__1936—Dec. 30__1937—Dec. 30. -

1938—Nov. 24..Dec. 29__

1939—Jan. 26__.Feb. 23._Mar. 30..April 27.May 25..June 29._July 27_ _Aug. 31 . .Sept. 28_.Oct. 26__

41, 66853, 57868,86383,01777,09882,124

60, 35958, 933

87,26487, 265

87, 26687, 26687, 266'092,26692, 26692, 26692, 266«97, 26697, 26697, 266

For-eignex-

change

25,94226,17921,1114,4841,158963

1,3281,460911

821

76175975875675472272221821285

Domestic bills

Openmarket7

5,6125,3047,1576,8026,1225,8375,8005,6405,580

7,0327,422

8,0047,8018,6318,6098,1648,0748,3169,3969,734

10, 038

Spe-cial 8

1,379652

1,6111,797

1,9962,0142,0542,1652,2762,2792,2751,7081,9582,007

Other

8,6248,4297~"3,4384,7393,9719,7128,46510,066

11,0217,880

6,1935,4625,7336,0124,7745,0095,00015,00914,830

Ad-vances

toGov-ern-

ment 9

17,69831,909

20, 62720, 627

20,62720, 62720, 62720,57720, 57720, 57720, 57720, 57722, 77725,473

Loans o n -

Short-term

Govern-ment se-curities

573715675

443

1367317212778374472

2,412930336

Othersecuri-

ties

2,5212,9012,7302,5152,9213,2113,2533,5833,781

3,7393,612

3,3893,3173,3323,3623,4013,4713,4613,8053,6613,576

Otherassets

5,6036,6098,5459,1968,2518,2887,8798,3447,277

14,18514,442

14.09914,30814, 55814,45214, 26414, 75314,45816,01616,48217.100

Liabilities

Notecircula-

tion

68, 57176,43685, 72585,02882, 61383,41281,15089, 34293,837

106, 798110, 935

109,378111, 162119, 748124, 666121,391122, 611123,239142, 359144, 562144, 379

Deposits

Govern-ment

11,73712,6245,8982,3112,3223,7182,8622,0893,461

6,1695,061

5,4455,0793,9553,7554,5735,1885,4683,3042,3422,004

Other

7,85011, 69822,18320,07213,41415, 3598,71613, 65519, 326

31, 95525, 595

24, 93522, 55616, 70217, 25517, 57016, 90916,05818,03818,02214, 790

Otherliabili-

ties

1,8122,2411,9892,0411,9401,9072,1132,5573,160

3,0042,718

2,7132,8302,7262,6493,0202,8162,7812,7082,9263,006

i Securities and silver coin held as cover for fiduciary issue. Currency and Bank Notes Act, 1939 (see BULLETIN for April 1939, p. 271), fixedfiduciary issue at £300,000,000 and provided for valuation of gold at current prices instead of legal parity, effective March 1, 1939. Since Sept. 6,1939, however, an increase in fiduciary issue (and securities held as cover) to £580,000,000 has been authorized by British Treasury under Section 8of Currency and Bank Notes Act, 1928 (see BULLETIN for August 1928, pp. 567-569). For status of fiduciary issue before Mar. 1, 1939, see BULLETINfor April 1939, p. 339.

i On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account.8 Effective Mar. 1, 1939, gold valued at current prices instead of legal parity and about £5,500,000 transferred from Exchange Account to

Bank. See note 1.* On July 12, 1939, £20,000,000 of gold transferred from Exchange Account to Bank of England.6 On Sept. 6, 1939, £279,000,000 transferred from Bank of England to Exchange Account.6 By decree of Nov. 12, 1938 (see BULLETIN for Jan. 1939, p. 29), gold revalued on basis of 27.50 milligrams gold 0.900 fine per franc; on Nov. 14

increment of nearly 31,500,000,000 francs was applied to partial reimbursement of advances to Government, which stood at authorized maximumof 52,000,000,000 francs on that date. Permanent debt of Government to Bank, included above in Other Assets, was simultaneously increased by6,800,000,000 francs. For details of revaluations in October 1936 and July 1937 see BULLETIN for Dec. 1938, p . 1091.

7 Negotiable bills of Caisse Autonome and bills bought under authority of decree of June 17, 1938 (see BULLETIN for Aug. 1938, p. 650).s Bills and warrants endorsed by National Wheat Board (law of Aug. 15,1936—see BULLETIN for Oct. 1936, pp. 785-786), and bills rediscounted

for account of Banques Populates (law of Aug. 19, 1936—see BULLETIN for Oct. 1936, p. 788).• Includes advances granted under authority of Conventions between Bank of France and Treasury of June 18, 1936, June 30, 1937, March 22,

1938, and April 14, 1938, as modified by Convention of Nov. 12, 1938; and under authority of Convention of Sept. 29, 1938, approved by decree ofSept. 1, 1939 (see BULLETINS for July 1936, p . 536; Aug. 1937, p. 720; June 1938, p. 452; Aug. 1938, p. 650; Jan. 1939, p . 30, and Nov. 1939, p. 976).

" On April 20, and again on Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France.11 Figures not yet available.NOTE.—For further explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463



CENTRAL BANKS—Continued

Reichsbank(Figures in millions of

reichmarks)

1929—Dec. 311930—Dec. 311931—Dec. 311932—Dec. 311933—Dec 301934—Dec. 311935—Dec. 311936—Dec. 31.1937—Dec. 31 .

1938—Nov. 30Dec. 31

1939—Jan. 31Feb. 28Mar. 31Apr. 29May 31June 30. _July 31 ___Aug. 31Sept. 30Oct. 31

Assets

Reserves of gold andforeign exchange

Totalreserves

2,6872 6851 156

920396

84887276

7776

76767777777777777777

Gold*

2, 2832 216

984806386

79826671

7171

7171717171

Bills (andchecks),

includingTreasury

bills

2,8482 5724,2422,8063 2264,0664 5525,5106,131

7,5148,244

7,1607,3618,1807,7267,5478,1598,461

10, 27210,1059,358

Securityloans

251256245176183146847460

4845

52605855404836602435

Securities

Eligibleas notecover

259445349221106

548557

592660677668922930925

1,0131,3241,440

Other

92102161398322319315303286

298298

298288292476285274289296393366

Otherassets

656638

1,0651,114

735827853765861

1,4941,621

1,8481,7101,4891,9282,1821,6581,6521,9641,9632,375

Liabilities

Notecircula-

tion

5,0444,7784,7763,5603,6453,9014,2854,9805,493

7,7448,223

7,8167,9398,3118,5198,5258,7318,989

10,90710, 99510, 820

Deposits

755652755540640984

1,0321,0121,059

1,1411,527

1,1191,1051,2491,1221,2921,2811,2941,4801,6021,520

Otherliabili-

ties

736822

1,3381,313

8361,001

923953970

1,0931,091

1,0911,1121,2121,2891,2341,1321,1571,2941,2871,312

1 Not shown separately on Reichsbank statement after June 15, 1939.NOTE.—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463.

Central bank[Figures as of last report

date of month]

National Bank of Albania (thou-sands of francs):

Gold.Foreign assetsLoans and discountsOther assetsNote circulationOther sight liabilitiesOther liabilities

Central Bank of the ArgentineRepublic (millions of pesos):

Gold reported separately. _.Other gold and foreign exchange.Negotiable Government bondsOther assetsNote circulationDeposits—Member bank

Government ___ _Other

Foreign exchange sold forwardOther liabilities

Commonwealth Bank of Australia(thousands of pounds):

Issue department:Gold and English sterlingSecurities

Banking department:Coin, bullion, and cash.London balancesLoans and discountsSecuritiesDeposits

Note circulationBank of Belgian Congo (millions of

Belgian francs):GoldLoans and discountsOther assetsNote circulationDeposits .Other liabilities

1939

Oct. Sept.

1,224135277220

1,163497938

4055

16, 03043, 995

1,86915, 64018, 06062, 25091,35551, 025

Aug.

7,56739, 5314, 9658,286

25,03421, 51513, 799

1,224105282238

1,135430169

36052

16, 03041, 500

1,46715, 87417, 62059,55087, 26248, 525

1938

Oct.

7,57518,8965,5834,515

10, 97812,84412, 746

1,2249541

2681,053

372109

14154

16,01137, 305

1,46320,199 •14, 93557, 25089, 30348, 030

166470399363532140


date of month]

National Bank of Belgium (millionsof belgas) :

Gold reserve __ _Other gold and foreign exchangeDiscountsLoansOther assets, .Note circulation __ _ _Demand deposits—Treasury

OtherOther liabilities

Central Bank of Bolivia (thousandsof bolivianos) :

Gold at home and abroadForeign exchangeLoans and discountsSecurities—Government

OtherOther assetsNote circulationDeposits. _.Other liabilities

National Bank of Bulgaria (mil-lions of leva):

GoldForeign exchangeLoans and discountsGovernment debt.Other assetsNote circulationDeposits _ _Other liabilities

Bank of Canada (thousands of Ca-nadian dollars):

GoldSterling and United States ex-

change _ _ _ _ _Canadian Gov't securities:

2 years or lessOver 2 years _ _ _. .

Other assets _ _ _Note circulation _Deposits-Chartered banks.. .

Dominion GovernmentOther

Other liabilities

1939

Oct.

3,603845552126549

5,3701

181124

225, 675

46, 564

193, 86255,0397,893

224, 401234,10239,08918, 43213,008

Sept.

3,628942440171553

5,4014

206124

2,006705

2,4093,4171,3864,4263,2062, 291

225, 675

44, 448

155, 05463, 5887,234

212, 490221,12738, 22811, 38012,774

Aug.

3,622932374273472

5,2994

247124

209, 775

52, 860

111,01852,0787,125

179, 704201,31830, 69511, 2169,923

1938

Oct.

3,318905420

48458

4,54254

434119

56, 69592. 66323, 655

402, 7534,037

43, 321283, 655280,129

59, 331

2,003837

1,2593,4681,1343,1153,3182, 267

181,146

36, 364

169, 67544,98910,969

178,080228,46025, 3631,6829,558





date of month]

Central Bank of Chile (millions ofpesos):

GoldDiscounts for member banksLoans to government _Other loans and discountsOther assetsNote circulation _ _ _ _Deposits—

Bank _Other

Other liabilitiesBank of the Republic of Colombia

(thousands of pesos):GoldForeign exchangeLoans and discountsGovernment loans and securities.Other assetsNote circulation. _ _DepositsOther liabilities

National Bank of Czecho-Slovakia '(millions of koruny):

GoldForeisrn exchanceDiscountsLoansOther assetsNote circulationDemand deposits „Other liabilities

Bank of Danzig (thousands ofgulden):

GoldForeign exchange of the reserveOther foreign exchangeLoans and discountsOther assetsNote circulationDemand depositsOther liabilities

National Bank of Denmark (mil-lions of kroner):

GoldForeign exchangeDiscountsLoans—To Government agencies

OtherSecuritiesOther assetsNote circulationDepositsOther liabilities

Central Bank of Ecuador (thou-sands of sucres):

GoldForeign exchange (net)Loans and discountsOther assetsNote circulationDemand depositsOther liabilities

National Bank of Egypt2 (thou-sands of pounds):

GoldForeign exchangeLoans and discountsBritish, Egyptian, and other

Government securitiesOther assetsNote circulationDeposits—Government


1939

Oct.

37,2334,944

22 04037,08731 98653, 79547, 64131, 855

Sept.

14681

754240

66884

19154

157

37 3835,544

21 13137,10531 01854,06946, 06032,052

1,659793

1,8951,0194 5856,438

8512,661

1173926

101182218

86480118169

Aug.

14667

754231

43845

15786

153

35 4537,543

19 43437,16731 78753, 62845, 78631, 969

1,698796

1,855804

4 3546,056

7022,750

22, 8621,165

19731, 661

2,26354,19025, 90019, 010

117892597

150189108452127T95

39, 0317,193

60, 01118, 45964, 74244, 25215, 701

6,5451,7085,744

27,01011, 97322,1863,945

18, 2488,603

1938

Oct.

14557

76616643

771

18274

149

41 7477,893

17 52746, 54827 35954, 30144, 73442, 040

2,690786

3,6821,1611 4437,130

9871,645

31,182455451

22, 3673,074

38, 55116, 81619,012

11811222

16381

146110435142176

34, 0515,887

52, 26920, 56967, 55829, 55415, 661

6,5451,2448,626

29 2257,138

22, 2993,703

18,1808,597


date of month]

Central Reserve Bank of El Salva-dor (thousands of colones):

GoldForeign exchangeLoans and discounts... __ __Government debt and securitiesOther assets . _ _Note circulationDepositsOther liabilities

Bank of Estonia (thousands ofkrooni):

Gold8

Foreign exchange (net)Loans and discountsOther assetsNote circulation __Demand depositsOther liabilities _

Bank of Finland (millions of mark-kaa):

Gold4

Foreign assetsLoans and discountsDomestic securitiesOther assets. _ _Note circulation _ _ _Deposits—Treasury


Bank of Greece (millions of drach-mas):

Gold and foreign exchange (net)Loans and discountsGovernment obligationsOther assetsNote circulationDepositsOther liabilities

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

Gold*.__ _Foreign exchange reserveDiscountsLoans—To Treasury _

OtherOther assets ___ _ _ _ _Note circulation __Demand deposits..Certificates of indebtedness..Other liabilities

Reserve Bank of India (millions ofrupees):

Issue department:Gold at home and abroadSterling securitiesIndian Gov't securitiesRupee coinNote circulation

Banking department:Notes of issue departmentBalances abroadTreasury bills discountedLoans to Government

Other assetsDepositsOther liabilities

Bank of Japan (millions of yen):GoldSpecial foreign exchange fundDiscountsLoans—Government

OtherGovernment bondsOther assetsNote circulationDeposits—Government..

Other... _ _ _Other liabilities

1939

Oct.

12483

625343

35334

1,03217894

240

Sept.

40, 9047, 370

45, 04838,11569, 46126, 77435, 203

1,1812,2141,269

331274

2,547132561

2,028

3,12613,6514,2071,993

10, 63910, 340

1,996

12498

627342

32331

1,08714899

220

501300451

3140

1,805397

2,634544

308

Aug.

13, 2085,172

8375,1041,092

14, 4907 3743,550

40, 9049,454

31, 47640, 29356, 98128, 02737,119

1,1832,4871,155

332304

2 262242906

2,050

3,09712, 3884,2112,1649,9809,9931,887

124101576343

43352

1,03818199

221

444595374755

1,789

37974

46

6813

428116

501300387

358

1,850447

2,461652

351

1938

Oct.

13, 2063,4211,0825,492

94813, 6446 0474 458

34, 29215, 78626, 69731, 35154, 21732, 22921 680

6202,3821,377

247348

2 068273989

1,645

3,4108,2914,3152,1157,1908,7402,201

84115479190

1427279412666

169

444622324709

1,772

32729

2315613

339119

501300476

363

1,625245

2,157554

397

iName changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, 1939.2 Items for issue and banking departments consolidated.8 Gold revalued in part on March 6, 1939 at 0.2802 gram fine gold per kroon.4 In accordance with law of December 22,1938, gold revalued on December 31,1938, at approximately 0.02 gram fine gold per markka.8 In accordance with law XXV of 1938 gold revalued on January 15, 1939, at 0.1754 gram fine gold per pengo and resulting increment included

in other assets.





date of month]

Bank of Java (millions of guilders):GoldForeign billsLoans and discountsOther assetsNote circulationDepositsOther liabilities

Bank of Latvia (millions of lats):Gold.. -_ _Foreign exchange reserve... . _Loans and discountsOther assets. _ _Note circulationDepositsOther liabilities

Bank of Lithuania (millions of litu):GoldForeign exchangeLoans and discountsOther assets _Note circulationDepositsOther liabilities

Netherlands Bank (millions of guil-ders) :

Gold.Silver (including subsidiary coin)Foreign billsDiscountsLoansOther assetsNote circulationDeposits—Government


Reserve Bank of New Zealand(thousands of pounds):

Gold _.. _ .Sterling exchange reserve.Advances to State or State un-

dertakingsInvestmentsOther assets __ __ _ _Note circulation

' Demand depositsOther liabilities

Bank of Norway (millions ofkroner) *

Gold _Foreign assetsTotal domestic credits and

securitiesDiscountsLoansSecurities

Other assetsNote circulationDemand deposits—Government


Central Reserve Bank of Peru(thousands of soles):

Gold and foreign exchange.. _DiscountsGovernment loansOther assetsNote circulationDepositsOther liabilities

Bank of Poland (millions of zlotys):GoldForeign exchangeLoans and discountsSecuritiesSpecial gov't debtsOther assetsNote circulationOther sight liabilitiesOther liabilities

1939

Oct.

9831

18045

11918451

Sept.

1299

7092

1997526

9835

17647

11818751

589

14542

1704538

1 10472

9024974

1,142

33648

2,8025,312

20, 8433,816

59816, 64814, 7102,014

23778

38418275

12627

538218186

Aug.

1299

6791

1937725

9835

1535289

20445

606

13243

1733930

1 129172

4826068

1,132

34448

2,8025,690

19, 6343, 658

35715, 80214, 3771,962

236128

30913647

12643

50521

10981

1938

Oct.

1173

641141898326

8342

1486083

20248

714

11433

1435524

1 481204

1730267

1 046140658

47

2,8027,708

10 8812,732

32814, 4388,3471 666

211219

2127333

10639

45629

11581

51, 65424, 04584 6145,283

106,11943, 62915 848

43313

1,034127

0)360

1,476121370


date of month]

Bank of Portugal (millions ofescudos):

Gold.Other reserves (net)Non-reserve exchangeLoans and discounts...Government debtOther assetsNote circulationOther sieht liabilitiesOther liabilities

National Bank of Rumania (mil-lions of lei):

GoldSpecial exchange accountsLoans and discountsSpecial loans 2

Othfir assetsNotfi circulation"OeTriflnrj depositÔther liabilities

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

GoldForeign billsOther bills and loansOther assetsNote circulationDepositsOther liabilities

Bank of Sweden (millions ofkronor):

GoldForeign assetsDiscounts _LoansDomestic securitiesOther assetsNote circulationDeTiRnd depositsOther liabilities

Swiss National Bank (millions offrancs):

GoldForeign exchangeDiscountsLoans.Other assetsNote circulationOther sight liabilitiesOther liabilities

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

GoldForeign exchange—Free

In clearing accountsLoans and discountsSecuritiesOther assetsNote circulationDepositsOther liabilities

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

Issue department*Gold and silverNote circulation __ _

Banking department:GoldNotes and coinLoans and discountsOther assetsDepositsOther liabilities

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

GoldForeign exchangeLoans and discountsGovernment debt __Other assets._.Note circulationOther sight liabilitiesOther liabilities

1939

Oct.

732452

14111207511

1,248573207

2,395291

9554

6862,036

835649

1,987616

2,5732,8353,9449,2441,5461,164

Sept.

920495225415

1 0361 2492,374

9521,013

20,3934,762

21,8691,382

10,19713, 70047, 9778,933

15, 393

28, 3987,125

1818, 22520 54529, 8803,341

786529

1378

194535

1,259703173

2,419285

9449

6842,082

802648

36, 8373

2,419205, 985197, 85228,109

288, 52164,072

118, 612

86, 23587, 296

21,00352, 327

112,004106, 34988, 948

202, 735

1,987582

2,4942,4003,9619,1081,0951,221

Aug.

920456219413

1 0361 2502,2301 0401,024

20, 2674,195

17, 9301,441

10,18312,49042, 35111,00413,150

26, 9106,4212 719

15, 84816 71231, 6763,511

782608

1160

186545

1,126884183

2,419288

6343

6842,024

828646

36,90611

3,556154,080193, 53928,053

229, 52165,461

121,165

86, 23589, 548

20,82650,194

108, 563108, 38987, 450

200, 521

1,924509

2,1322,2313,3327,9861,350

791

1938

Oct.

918493172

f'4351 0391,3182,1711 0991,105

18,0784,207

12, 2301,850

10, 50010, 68734, 58112, 06310, 908

26, 5607,1701,822

15, 40317 75529, 9513,249

707890

132886

4621,028

985172

2,873302111

26707

1,7361,641

642

36, 8711

17, 50092, 058

189, 95134,173

196, 61164,978

108, 965

103, 58586, 520

2,31648, 71897, 59669, 20980, 373

137, 466

1,893442

1,8962,2433,4577,0122,049

869

1 Not reported separately on bank statement; included with loans and discounts.2 Agricultural and urban loans in process of liquidation.



BANK FOR INTERNATIONAL SETTLEMENTS[In thousands of Swiss gold francs 1]

Assets

Gold in barsCash on hand and on current account

with banks _Sight funds at interest

Rediscountable bills and acceptances(at cost)

Time funds at interestSundry bills and investments

Other assets _

Total assets

1939

Oct. 31

17, 532

15,85113,814

158,01926, 575

214, 265

6, 233

452, 290

Sept. 30

16, 523

27, 33711, 536

176,06232, 979

226,008

3,027

493, 472

1938

Oct. 31

29, 303

27, 93514,434

201,06552,080

248, 243

12, 869

585, 929

Liabilities

Demand deposits (gold) ___

Short-term deposits (various curren-cies) :

Central banks for own accountOther

Long-term deposits: Special accounts..

Other liabilities

Total liabilities __

1939

Oct. 31

10,664

20,1753,148

229, 644

188, 659

452, 290

Sept. 30

10,688

40,1693,002

250, 906

188, 706

493, 472

1938

Oct. 31

9,347

110,9418,549

254,888

202, 204

585,929

i See BULLETIN for December 1936, p. 1025.

MONEY RATES IN FOREIGN COUNTRIES[Per cent per anum]

Month

1929—October...1930—October...1931—October...1932—October...1933—October...1934—October...1935—October. _.1936—October. __1937—October. __1938—October.. _

1939—AprilMay _JuneJulyAugustSeptemberOctober

United Kingdom (London)

Bankers'acceptances3 months

6.132.095.68

.77

.63

.56

.55

.70

1.40.73.75.79

1.583.511.88

Treasurybills, 3months

6.192.135.46.71.73.68.62.54.53.68

1.36.70.76.77

1.923.231.77

Day-to-daymoney

5.451.654.36.71.75.75.75.75.75.75

.75

.77

.751.352.721.71

Bankers'allowance

on deposits

Germany (Berlin)

Privatediscount

rate l

7.284.668.003.873.873.813.042.942.882.88

2.882.772.792.752.752.75

Money for1 month

9.065.939.845.005.505.133.262.822.912.88

2.882.532.502.502.50

Day-to-daymoney 1

8.065.159.214.945.114.633.132.822.812.70

2.362.462.712.652.502.51

Netherlands (Amster-dam)

Privatediscount

rate

5.151.592.76.37.50.59

4.701.87.13.21

1.11.72.49.51

1.032.941.90

Money for1 month

4.521.483.071.001.001.005.002.51.50.50

1.24.80.75.75

1.533.662.24

Month

Switzer-land

Belgium(Brussels)

France(Paris)

Italy(Milan)

HungarySweden(Stock-holm)

Japan (Tokyo)

Privatediscount

rate

Privatediscount

rate

Privatediscount

rate

Privatediscount

rate

Primecommer-cial paper

1929—September1930—September1931—September1932—September1933—September1934—September1935—September.1936—September1937—September1938—September

1939—MarchAprilMayJuneJulyAugustSeptember

3.381.501.801.501.501.502.401.981.001.00

1.001.001.001.001.001.001.25

4.942.392.443.002.272.151.881.381.003.26

3.284.283.992.792.302.24

3.501.991.501.001.131.502.853.383.542.65

1.94

952.70

7.015.485.475.503.553.004.874.505.005.00

5.005.005.005.005.00

M 7 M8-1034

^ 8% V2

434- 7V24- 74 - &A4- 634

4^-63

Day-to-daymoney

Loans upto 3

monthsDiscounted

bills

5-64-4%

334334

32%

134134134134

3^-5343-5

234-52M-4H2^-52^52H-5

5.485.48

4. 93-5. 485. 66-6. 215.11-5. 48

5.115.114.754.754.56

4.474.474.474.47

23-3-5

Callmoney

overnight

2.923.652.563.472.562.632.622.812.462.33

2.542.472.372.39

1 Beginning September 1939 figures are those published in the Wochenbericht des Instituts fur Konjunkturforschung.NOTE.—For explanation of table see BULLETIN for November 1926, pp. 794-796; April 1927, p. 289; July 1929, p. 503; November 1929, p. 736; May

1930, p. 318; and September 1938, p . 757.



DISCOUNT RATES OF CENTRAL BANKS[Per cent per annuml

Date effective

In effect June 30,1936

July 7July 10Sept. 9Sept. 25Oct 2Oct. 9Oct. 16. . . ._Oct. 20Nov. 26Dec 3Jan. 28, 1937June 15July 7Aug 4Sept. 3Nov 13May 10, 1938May 13May 30Sept 28Oct 27Nov 25Jan 4 1939Apr. 17May 11July 6Aug. 24Aug 29Sept. 28Oct. 26In effect Nov. 28,

1939. _

Central bank of—

UnitedKing-dom

2

4

32

2

France

4

3

53

2 2

4654

3 2

2H

3

2K2

2

Ger-many

4

4

Bel-gium

2

4

3

2H

43

2H

Neth-er-

lands

3 2

2H2

3

3

Switz-er

land

2H

2

Wi

IK

Japan

3.29

3.29

Centralbank of—

AlbaniaArgentina..BelgiumBoliviaBritishlndiaBulgariaCanadaChileColombia...Czecho-

slovakia. _DanzigDenmark. __EcuadorEl SalvadorEstoniaFinlandFranceGermany.. .Greece .HungaryItaly

RateNov.

28

6

6 2

36

3-4K

3443

424644H

Dateeffective

April 1, 1937Mar. 1, 1936July 6, 1939July 5, 1932Nov. 28, 1935Aug. 15, 1935Mar. 11, 1935Dec. 16, 1936July 18, 1933

Jan. 1, 1936Jan. 2, 1937Oct. 10, 1939Nov. 30, 1932Mar. 30, 1939Oct. 1, 1935Dec. 3, 1934Jan. 4, 1939Sept. 22, 1932Jan. 4, 1937Aug. 29, 1935May 18, 1936

Centralbank of—

JapanJavaLatviaLithuaniaMexicoNetherlandsNew Zea-

landNorwayPeruPolandPortugalRumaniaSouth AfricaSpainSwedenSwitzerlandTurkeyUnited King-

domU. S. S. R...Yugoslavia. .

RateNov.

28

3.293

6 2

33

4

4 2

4

245

Dateeffective

Apr. 7, 1936Jan. 14, 1937Jan. 1, 1939July 15, 1939Mar. 1, 1937Aug. 29, 1939

Nov. 19, 1938Sept. 22, 1939May 20, 1932Dec. 18, 1937Aug. 11, 1937May 5, 1938May 15, 1933

*Mar. 29, 1939Dec. 1, 1933Nov. 26, 1936July 1, 1938

Oct. 26, 1939July 1, 1936Feb. 1, 1935

1 Not officially confirmed.Changes since Oct. 26: None.

COMMERCIAL BANKS[Figures as of end of month, except those for United Kingdom, which are averages of weekly figures]

United Kingdom(Figures in millions of pounds sterling)

Assets

CashMoney atcall and

shortnotice

Bills dis-counted

Securi-ties

Loans tocustom-

ersOtherassets

Liabilities

Deposits

Total Demand i Time iOther

liabilities

1930—December.1931—December.1932—December.1933—December.1934—December.1935—December.1936—December.1937—December.1938—December.

1936—December.1937—December.

1938—September.October. __November.December.

1939—January...February..MarchApril _MayJune _JulyAugustSeptemberOctober 3__

10 London clearing banks

208184207213216221236236235

144119127119151159187155150

322246408311255322316295244

285297472565594605630605606

933905778740759784864954940

240222208237247231238242250

1,8761,7371,9831,9411,9712,0912,2382,2502,172

992868991

1,0151,0441,140

847846963900910924

11 London clearing banks 2

244244

234234233243

248243232229236235235233268256

195163

148149149160

143138141145144150155152146159

322300

289268272250

256212190184201249278279236289

660635

646645642635

625617611611605600597599603605

890984

973973966971

972982992997992993986985

1,0161,020

249256

242256255263

252253249256258257251269276271

2,3152,330

2,2692,2562,2492,254

2,2302,1762,1522,1552,1672,2192,2402,2452,2782,327

1,2881,284

1,2361,2471,2441,256

1,2601,2131,1861,1851,1941,2321,2411,239

1,0121,026

1,0331,0091,004

997

970964966970973987999

1,007

254237216244251231232237254

245252

262270269269

267268264267268265263273266272

1 Through December 1937 excludes deposits in offices outside England and Wales, which are included in total. Figures for 10 banks not avail-able beginning 1936.

2 District Bank included beginning in 1936.3 Figures combined from reports by banks for one or another of several days near end of month; averages of weekly figures discontinued.NOTE.—For other back figures and explanation of tables see BULLETIN for October 1933, pp. 639-640.



COMMERCIAL BANKS—Continued[Figures as of end of month]

France

(4 large banks. Figures in millions offrancs)

1930—December.1931—December.1932—December.1933—December.1934—December.1935—December.1936— December.1937—December.1938—November

December.1939—January. _.

February..MarchAprilMayJuneJulyAugust p__

Assets

Cash

2,41911,3119,0075,8705,8363,7393,1003,4033,3573,7563,3293,4333,6043,5225,1483,5383,4646,357

Due frombanks

4,6752,1681,7661,4161,4212,4842,9754,1164,3184,0603,9853,8243,5193,7453,7693,8573,5803,718

Bills dis-counted

20,44818,44122,01419,84818, 30416,14117, 58218, 24918, 52221, 43522,10023,02423, 94525, 66725,10225, 26325, 71718, 784

Loans

10,7439,2747,8508,3098,1598,0257,6317,6247,9567,5927,0796,9276,6546,4147,0616,5386,8507,353

Other

2,3612,1301,7491,8271,7171,9001,9572,134

1,9761,940

1,3391,2501,3101,3531,4091,4721,5321,674

Liabilities

Deposits

Total Demand Time

36,68138,24537,75932, 63530,94327, 55328,48430,348

30,97133, 57833,44434, 24334, 79336, 36838,12036, 23136, 65033, 293

35,28437,02336,49131,77330,03926,85927,95529, 748

30,46033,04232,86333, 61934,12735, 70037, 44435, 54735, 99132, 668

1,3971,2221,268862904694529600511537581624667667676684659626

Ownaccept-ances

921576295273193337473661

746721643538541558519486430455

Otherliabilities

4,3574,5034,3314,3624,3014,3994,2894,5174,4114,4843,7453,6773,6973,7753,8493,9514,0634,138

Germany i

(5 large Berlin banks. Figures in mil-lions of reichsmarks)

Assets

Cashreserves

Duefrombanks

Bills dis-counted Loans Securi-

tiesOther

Liabilities

Deposits

Total Demand Time

Creditsobtained

frombanks

Otherliabili-

ties

1930—November..1931—November..1932—November..1933—November..1934—November..1935—November..1936—November..1937—November..1938—August

September..OctoberNovember..

1939—JanuaryFebruary...,MarchAprilMayJune

191173143131115139137148199270179195184175219189237214

1,483817583471393316269299255295261270285307308271292306

2,4531,4311,6311,7022,0372,1622,5673,2053,5893,3843,6203,6433,9343,8883,9044,3644,5374,108

7,4165,3774,5703,7313,3312,8842,7292,6282,7312,8172,7432,6852,7082,7982,8332,7612,772

482807938860874,027,112,020

,098,097,183L, 406L, 178, 145,112,0821,0731,080

1,127991

1,003

851812844876

895902901891852829

9,0916,0626,1615,7545,8165,3765,7516,2646,9336,9157,0317,2347,3347,3777,4587,7457,9817,793

3,8573,2522,9582,6242,7312,4352,6612,9123,2193,3113,3733,5313,6193,5763,6933,8703,9963,793

5,2332,8103,2033,1303,0852,9413,0903,3523,7143,6033,6583,7033,7163,8013,7653,8753,9853,999

1,9861,3281,146661485686579513416424422420

414410401398396390

1,8282,3411,5501,4811,432:, 449,334,335:,368,4001,4271,4381,4361,4271,4181,4141,3851,342

Liabilities

Canada

'10 chartered banks. Figures in mil-lions of Canadian dollars)

Entirely in Canada

Cash Securityloans

Otherloans

and dis-counts

Securityloans

abroadand net

duefrom

foreignbanks

Securi-ties

Other Notecircula-

tion .

Deposits payable in Can-ada excluding interbank

deposits

Total Demand Time

Otherliabili-

ties

1930—December.1931—December.1932—December.1933—December.1934—December.1935—December.1936—December.1937—December.1938—November.

December.1939—January...

February..MarchAprilMayJuneJuly..AugustSeptember.

207201211197228228240255

277263276267259260266255266265279

20513510310610383114766465636056545553514951

1,2751,2531,1041,036977945791862970940919921943956963957947957

1,020

171146155134155141161102

192166167171192203217226202245214

604694778861967

1,1551,3841,411

1,4261,4631,4541,4901,4991,5091,5051,5251,5201,5071,502

602510439432449485507510

471474459450458449452494468461475

13312911512112411110396

9288858893908592

95

2,1152,0581,9161,9202,0352,1802,3032,3352,4992,5002,4572,4712,4922,5092,5242,5422,5202,5242,583

538563628694755752

844840789780791812846862822822891

1,4261,3601,3781,3571,4071,4861,5481,583

1,6551,660

1,6671,6911,7001,6971,6781,6801,6971,7021,692

816752760725718745790786

808782

7fi6800821833850875849873862

v Preliminary.i Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large

Berlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes in reporting practice(See BULLETIN for June 1935, p. 389).

NOTE.—For othe r back figures and explanation of table see BULLETIN for October 1933, pp. 641-646; June 1935, pp. 388-390; and August 1939,p. 699.



FOREIGN EXCHANGE RATES[Averages of certified noon buying rates in New York for cable transfers. In cents per unit of foreign currency]

Year or month

1929193019311932193319341935193619371938

1939—FebruaryM!archAprilMâyJuneJulyAugustSeptemberOctober

Year or month

192919301931193219331934193519361937 -1938

1939— February _ _.March.AprilMayJuneJulyAugustSeptemberOctober ___

Year or month

192919301931193219331934 . . .1935193619371938

1939—FebruaryMarchAprilMavJune.-July... ~ .AugustSeptember..October

Argen-tina

(peso)

95 12783 50566. 73858 44372. 80133 57932 65933 13732. 95932 597

31.23631 23431 20731 210

. 31.217_ 31.211

31. l ie

29. 77C

Czecho-slovakiakoruna)

2.96092. 96402. 96192. 96183. 82324. 24244.16424. 00783.49303. 4674

3.42483. 4245

Norway(krone)

26.68326. 76025.05518.00421. 42925. 31624. 62724. 97424. 84024. 566

23. 53923. 53923 51523. 51923. 52423. 52023. 37622. 65522. 697

Aus-tralia

(pound

480 83458 6C351. 5C279 92337.07400 91388.8(395 94393. 94389. 5,

373. 3[373 2"372. 8(372 8<373.11373. o:367.3318 3319.5

Den-mark .

(krone) u

26.68026. 76525.05818. 83219. 07122. 50021. 88322.18922. 06921. 825

20.91220. 91220.89120.89520. 90020. 89620.83419 31719.291 _

Poland(zloty)

11 19411. 20511.19711.18214. 41418. 84618.88218.87518. 92318.860

18 89818. 86018 81818 81218.81218. 80818.754

Bel-gium

) (belga)

13 91213 95213. 92913 91417. 90023 287

> 18.424I 16 917I 16.876) 16.894

\ 16.8607 16 8233 16.838) 17 0162 17.008$ 16.991I 16.968I 17.028L 16.729

EgyptDound)

498.07498. 60465.11359. 54434. 39516. 85502. 60509. 68506. 92501. 30

480.43480. 40479. 90479.97480.10480. 00472. 41432 04

Brazil (milreis)

Official

11.807210.71367.02907.12237. 96308. 42688. 29478. 56818. 71905. 8438

5. 86025. 86475. 8595

6. 05856. 05716.05796. 05946. 0575

Fin-land(mar-kka)

2, 51602. 51692. 38751. 55471. 87082. 22772.16272.19032.18112.1567

2. 06042.05972. 05422.05482.05592.05472.04561. 90001. 8943

Portu-gal

(escudo)

4.47144. 49404. 24353.19603. 91654. 60894. 45754. 51304. 47924. 4267

4. 25084. 25024 24484. 24604. 24844. 25064. 22343. 65643. 6444

Freemarket

5. 87886.1806

5.10385.05555.02365.01625. 0503

France(franc)

3.91613. 92493. 92003.92765. 03136. 56886. 60136.11414. 04602. 8781

2. 64712. 64882. 64782. 64872. 64932. 64882. 61372. 26512. 2736

Ruma-nia

(leu)

.5961

.5953

.5946

.5968

.77951.0006.9277.7382.7294.7325

.7272

.7140

.7056

.7056

.7042

.7035

.7043

BritishIndia

(rupee)

36.20236.06733. 69026.34731. 81637. 87936. 96437. 52337. 32636. 592

35.01435.05734. 96234.91634. 92434. 90534.40729. 92830. 296

Ger-many(reichs-mark)

23.80923. 85423. 63023. 74930. 51839. 37540. 25840. 29740. 20440.164

40.11740. 09840. 08140.11540.10540.11339.85939. 500

SouthAfrica

(pound)

483. 27483. 79480. 76476. 56414. 98498. 29484. 66491. 65489. 62484.16

463. 83463. 74462. 80463.11463. 32463. 28456.10394. 57396.12

Greece(drach-ma)

1.29341. 29591. 2926.8320.7233.9402.9386.9289.9055.8958

.8583

.8586

.8579

.8570

.8565

.8576

.8520

. 7575

.7345

Spain(peseta)

14.68311. 6679.5458.044

10. 71913. 61513.67812. 3146.0535.600

11. 02311. 02311. 02311. 00010. 49210.148

Bul-garia(lev)

.7216

.7209

.7163

.71931.00391. 28521. 29511. 29581. 28461. 2424

1. 21301. 21031. 20891. 21011. 20771. 21261. 2111

HongKong

(dollar)

47.16733. 85324. 33123.46029. 45238. 71648. 21731.71130. 69430. 457

29. 07829. 04928. 65928. 88428. 91628. 70328. 21324. 86325. 030

StraitsSettle-ments(dollar)

56 f55.

11?}64

52. 4454049.

W?3?

59. 005575857.

73258973

56. 917

54. 41654. 394545454.5453.46.47.

?73S73509785996712017

Canada —(dollar)

99.24799. 84296. 32688.09091. 959

101.00699. 49399. 913

100.00499. 419

99. 50299. 58399. 48399. 62099. 77399. 83599.49491. 25589. 331

Hun-gary

(pengo)

17.44117.49417. 45217. 44622. 36029. 57529. 60229. 55819. 77919. 727

19. 62719. 61319. 60219.58819. 57719. 57619. 576

Swe-den

(krona)

26. 78426. 85425. 25418. 47122.03225. 98225. 27125. 62625. 48725.197

24.13324.13024. I l l24.11024.10724.11424. 00223. 76323.792

Switz-erland(franc)

19. 27919. 38219. 40119.40524. 83632. 36632. 49730.18922. 93822. 871

22. 67222. 61422. 43122. 48022. 54622. 55022. 57322. 57f22. 433

Chile (peso)

Official

12.060112. 078512. 06697. 90797. 6787

10.14525.08335.12405.16975.1716

5.17365. 17335.17355.17335.17375.17035.16915.17765.1713

Italy(lira)

5. 23345. 23745. 20635.12536. 70948. 56178. 24717. 29165. 26075. 2605

5. 26025. 26015. 26015. 26035. 26045. 26055.25155.14455.0465

Turkej(pound

48.41147. 06147.18147. 28560. 44079.04780.31280. 35780.13080.109

80. 38580.36180. 27980. 29080.10180. 02180.02279. 500

Export

4.00004. 0000

4.00004.00004. 00004.00004.00004.00004.00004.00004. 0000

Japan(yen)

46.10049.39048. 85128. I l l25. 64629. 71528. 70729.02228. 79128. 451

27. 29727. 30027. 27427. 27727. 28427. 27926.87023. 45923. 510

United' King-) dom

(pound;

485 69486. 21453. 50350. 61423. 68503. 93490.18497.09494. 40488 94

468 57468. 54468 05468 13468. 24468.15461. 07399. 51401.05

China(yuan-Shang-

hai)

41.90129.91722. 43721. 73628. 59834.09436. 57129. 75129. 60621. 360

15. 88516.01616.01515.98713. 43410. 6377.1636.6967.638

Mexico(peso)

48.18347.13335. 49231. 85028.10327. 74227. 77827. 76027. 75022.122

19. 97320. 02620.02320.02519. 75317.13316.80019. 02320.151

Colom-bia

(peso)

96.55196. 49396. 57095. 27581. 69761. 78056.01157.08356. 72655. 953

56.99056. 98356. 98257.00957.16957.03657.06157. 06857.151

Nether-lands

(guilder)

40.16240. 22540. 23040. 29551. 72167. 38367. 71564. 48155.04555.009

53. 62653.09253.13253. 60153.16753. 27853.48453.18253.115

Uruguay (peso)

Con-trolled

98. 62985.86555. 35747.06460. 33679. 95680. 25179. 87479.07264. 370

61 64661. 65061 59261. 59861. 60961. 60060. 65952. 59552.847

Non-con-trolled

35.62035. 81835. 69838.18039. 022

Cuba(peso)

99 96599 95299. 93099 94199 94699 93699 92099 90999. 91699 925

99 93399 93299 93699 94299. 94999. 95099.950

NewZealand(pound)

483 21468 22415 29320.19340 00402. 46391. 26398.92396. 91392 35

374. 84374. 78374 41374.42374 60374. 49368 82319 75320. 81

Yugo-slavia

(dinar)

1 75911 76811 76801 64111 76072 27192 28372 29652 30602 3115

2 28202 27812 26362 26752. 26742 27442. 2729

NOTE.—Developments affecting averages since September 1939 have been as follows: No rates certified for following days: Argentina—Oct. 1-16;Bulgaria, Cuba, Egypt, Germany, Hungary, Poland, Rumania, Turkey, and Yugoslavia—Oct. 1-31; Uruguay—Oct. 17-31. Quotations no longernominal for Australia, Denmark, Finland, Hong Kong, Italy, Norway, Portugal, South Africa, Straits Settlements, and Sweden. For furtherinformation concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotation, seeBULLETINS for March 1938, p. 244; March 1939, p. 236; September 1939, p. 831; and November 1939, p. 1031.


1148 FEDERAL RESERVE BULLETIN D E C E M B E R 1939

PRICE MOVEMENTS IN PRINCIPAL COUNTRIESWHOLESALE PRICES—ALL COMMODITIES

[Index numbers]

Year or month

1926

1929193019311932 __193319341935193619371938 —

1938—SeptemberOctoberNovember. __ _December

1939—January __ _FebruaryMarch __AprilMayJuneJulyAugust __SeptemberOctober

UnitedStates

(1926=100)

100

95867365667580818679

78787877

77777776767675757979

Canada(1926=100)

100

96877267677272758579

75747473

737373737473737278

UnitedKingdom

(1930=100)

1124

100888686888994

109101

98999898

9797979798989898

105pi l l

France(1913=100)

695

627554500427398376338411581653

652664674684

689685683675684683678674

Germany(1913=100)

134

137125111979398

102104106106

106106106106

107107107106107107107107107

Italy(1928=100)

95857570636268768995

97979796

97979898979896

Japan(October

1900=100)

237

220181

161180178186198238251

252253254255

259264265266270270270272288

Nether-lands

(1926-30=100)

106

100907665636362647672

71717071

7070707070707071

Switzer-land

(July 1914=100)

144

1411261109691909096

111107

106106106106

106105105106107106107107117

p Preliminary.i Approximate figure, derived from old index (1913=100).

WHOLESALE PRICES—GROUPS OF COMMODITIES

[Indexes for groups included in total index above]

Year or month

1926

192919301931 - -1932193319341935193619371938

193g—SeptemberOctober _ _November __ _December

1939—JanuaryFebruaryMarchApril _ _MayJuneJuly . _AugustSeptemberOctober _ _

United States (1926=100)

Farmproducts

100

105886548516579818669

68676868

67676664646263616967

Foods

100

100917561617184828674

75747473

72727069686868677573

Othercommod-

ities

100

92857570717878808582

81818180

80808081818080808284

United Kingdom(1930=100)

Foods

100898883858792

10297

92939192

9391909192929190

101P109

Indus-trial

products

100878587909096

112104

102102103102

100100100100101101102102107

France (1913=100)

Farmand foodproducts

581

579526542482420393327426562641

631646662684

688673671650652643629616

Indus-trial

products

793

669579464380380361348397598663

669680685685

690694694697712718721726

Germany (1913=100)

Agricul-tural

products

129

130113104918796

102105105106

106106107107

108108108107108109109109108

Provi-sions

132

1251139686757684869691

91929595

9494949294919292

Indus-trial rawand semi-finishedproducts

130

13212010389889192949694

94949494

949495959494959595

Indus-trial fin-

ishedproducts

150

157150136118113116119121125126

126126126126

126126126126126126126126126

r Preliminary.Sources— See BULLETIN for March 1931, p. 159; March 1935, p. 180; October 1935, p. 678; March 1937, p. 276; and April 1937, p. 372.



PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued

RETAIL FOOD PRICES[Index numbers]

Year ormonth

1926

1929193019311932.19331934193519361937.1938

1938-SeptemberOctober. __NovemberDecember.

1939-January . .FebruaryMarchAprilMayJuneJuly-August...SeptemberOctober. __

UnitedStates1923-

1925=100

109

1051008268667481828579

79787879

78777677777677757978

Eng-landJuly

1914=100

161

154145131126120122125130139141

140139140139

138138135135134134139137138

FranceJuly

1914=100

554

611614611536491481423470601702

697725727742

748744742734738739741749

1

Ger-many1913-

1914=100

146

156146131116113118120122122122

121121121121

122122123122123124125125122

Nether-lands1911-

1913=100

161

162150136119120124118120127130

130130128130

130

124

Switz-erlandJune

1914=100

160

156152141125117115114120130130

130130130130

129129128129130132132131133

COST OF LIVING[Index numbers]

Year ormonth

1926

192919301931_.19321933 .19341935193619371938

1938-SeptemberOctoberNovemberDecember.

1939-JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctober

UnitedStates1923-

1925=100

103

100978980767981828483

83

83

82

82

83

Eng-landJuly

1914=100

170

164158148144140141143147154156

156155156156

155155153153153153156155155

P165

France

1930=100

100979187837886

102117

120

122

123

Ger-many1913-

1914=100

142

154148136121118121123125125126

125125125125

126126126126126127127127126

Nether-lands1911-

1913=100

168

168161151141139140CO <M

I>C

OC

O C<

139

139138137138

138

136

Switz-erlandp June

1914=100

162

161158150138131129128130137137

137137137137

137136136136137137138137138

p Preliminary.i Revised index from March 1936 (see BULLETIN for April 1937, p . 373).Sources— See BULLETIN for April 1937, p . 373, and October 1939, p . 943.

SECURITY PRICES[Index numbers except as otherwise specified]

Year or month

Number of issues. _

1926.-

19291930.193119321933.19341935193619371938

1938—September..OctoberNovember..December...

1939—JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptember..October

Bonds

UnitedStates

(averageprice) i

60

97.6

98.199.390.969.573.484.588.697.593.478.9

78.781.882.181.1

81.982.183.179.480.281.481.681.080.982.9

England(December1921=100)

87

110.0

110.2111.8108.4113.2119.7127.5129.9131.2124.6121.3

118.4118. 2118.0116.3

115.9115.8113.6110.8113.5113.5112.5110.9106.9

France(1913=100)

36

57.4

85.195.896.988.681.382.183.576.375.177.3

75.678.380.688.3

83.486.586.086.685.184.084.382.9

Germany(averageprice)

139

81.483.3

3 83.43 67.1

82.590.795.395.898.799.9

99.899.899.799.2

99.099.099.099.099.099.099.099.098.9

Nether-lands 2

8

100.0104.3104.194.8

105.3113.4107.8109.1

4 101. 8105.9

100.6105.6105.3105.9

104. 3102.1100.995.298.096.394.492.679.6

Common stocks

(1926=100)

UnitedStates

420

100.0

190.3149.894.748.663.072.478.3

111.0111.883.3

86.091.194.792.0

91.890.191.781.983.186.086.186.392.495.3

England

278

100.0

119.5102.678.967.978.685.786.397.096.380.8

78.479.680.478.4

78.077.577.175.177.076.675.875.372.0

France

300

100.0

217.6187.6132.2105.299.683.379.777.297.489.7

83.788.091.8

104.7

94.0100.097.997.9

103.098.3

100.494.0

Germany

329

100.0

122.8100.23 78.03 50.3

61.771.182.991.6

102.6100.1

94.798.697.294.6

95.396.194.494.994.192.591.7

C93. 292.8

Nether-lands

(1930=100)

100

100704652555566

10496

92.898.098.897.8

94.392.494.0

89! 391.689.388.692. 1

c Corrected.1 Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co.2 Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index

beginning January 1937, January-March 1937=100; average yield in base period was 3.39 per cent.8 Exchange closed from July 13 to Sept. 2, 1931, and from Sept. 19, 1931, to Apr. 11, 1932. Index for 1931 represents average of months January-

June: index for 1932 represents average of months May-December.• New index. See note 2.Sources.—See BULLETIN for February 1932, p. 121; June 1935, p. 394; April 1937, p. 373; July 1937, p. 698; and November 1937, p. 1172.


FEDERAL RESERVE DIRECTORY

1150


BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

M. S. SzYMCZAKJOHN K. MCKEB

MARRINER S. ECCLES, Chairman

RONALD RANSOM, Vice ChairmanCHESTER C. DAVISERNEST G. DRAPER

LAWRENCE CLAYTON, Assistant to the ChairmanELLIOTT THURSTON, Special Assistant to the ChairmanCHESTER MORRILL, Secretary

LISTON P. BETHEA, Assistant SecretaryS. R. CARPENTER, Assistant SecretaryJ. C. NOELL, Assistant Secretary

WALTER WYATT, General CounselJ. P. DREIBELBIS, Assistant General CounselGEORGE B. VEST, Assistant General CounselB. MAGRUDER WINGFIELD, Assistant General Counsel

LEO H. PATJLGER, Chief, Division of ExaminationsR. F. LEONARD, Assistant Chief, Division of ExaminationsC. E. CAGLE, Assistant Chief, Division of Examinations

E. A. GOLDENWEISER, Director, Division of Research and StatisticsWOODLIEF THOMAS, Assistant Director, Division of Research and Statistics

EDWARD L. SMEAD, Chief, Division of Bank OperationsJ. R. VAN FOSSEN, Assistant Chief, Division of Bank OperationsJ. E. HORBETT, Assistant Chief, Division of Bank Operations

CARL E. PARRY, Chief, Division of Security LoansPHILIP E. BRADLEY, Assistant Chief, Division of Security Loans

O. E. FOULK, Fiscal AgentJOSEPHINE E. LALLY, Deputy Fiscal Agent

FEDERAL OPEN MARKET COMMITTEE

MARRINER S. ECCLES, Chairman

GEORGE L. HARRISON, Vice ChairmanCHESTER C. DAVISERNEST G. DRAPERM. J. FLEMINGGEORGE H. HAMILTONHUGH LEACHWM. MCC. MARTINJOHN K. MCKEERONALD RANSOMM. S. SZYMCZAK

CHESTER MORRILL, Secretary

S. R. CARPENTER, Assistant SecretaryWALTER WYATT, General CounselJ. P. DREIBELBIS, Assistant General CounselE. A. GOLDENWEISER, EconomistJOHN H. WILLIAMS, Associate EconomistALLAN SPROUL, Manager of System Open Market Account

FEDERAL ADVISORY COUNCIL

District No. 1 (BOSTON) THOMAS M. STEELE

District No. 2 (NEW YORK) LEON FRASER

District No. 3 (PHILADELPHIA) HOWARD A. LOEB,

Vice-PresidentDistrict No. 4 (CLEVELAND) T. J. DAVIS

District No. 5 (RICHMOND) ROBERT M. HANES

District No. 6 (ATLANTA) EDWARD BALL

District No. 7 (CHICAGO) EDWARD E. BROWN

District No. 8 (ST. LOUIS) WALTER W. SMITH

PresidentDistrict No. 9 (MINNEAPOLIS) JOHN CROSBY

District No. 10 (KANSAS CITY) JOHN EVANS

District No. 11 (DALLAS) R. E. HARDING

District No. 12 (SAN FRANCISCO)__.PAUL S. DICK

WALTER LICHTENSTEIN, Secretary

1151


SENIOR OFFICERS OF FEDERAL RESERVE BANKS

Federal ReserveBank of—

Boston

New York__

PhiladelDhia

Cleveland

Richmond... _ _.

Atlanta

Chicago

St Louis

Minneapolis.._ _ _

Kansas City

Dallas

San Francisco

Chairman and FederalReserve Agent

F. H. Curtiss_

Owen D. Young

T B McCabe

G C Brainard

Robert Lassiter

F H Neely

R. E. Wood i

W T Nardin

W. C. Coffey 1

R. B. Caldwell

J. H. Merritt

St George Holden l

President

R. A. Young

G. L. Harrison.. _ _

J S Sinclair

M. J. Fleming

Hugh Leach _

R. S. Parker

G. J. Schaller __

W. McC. Martin..

J N Peyton

G. H. Hamilton...

R R Gilbert

W. A. Day

First Vice President

W. W. Paddock

Allan Sproul _

F J. Drinnen

F. J. Zurlinden

J. S. Walden, Jr

W. S. McLarin, Jr.

H. P. Preston...

F. G. Hitt

0 S. Powell

C. A. Worthington

E B Stroud

Ira Clerk

Vice Presidents

W. Willett »

L. R. RoundsW. S. LoganJ. H. WilliamsR. M. GidneyL. W. KnokeR. G. Rouse

C A Mcllhenny 3

W. J. DavisE. C. Hill

W. H. FletcherG. H. WagnerW. F. Taylor »

J. G. FryG. H. Keesee i

H. F ConniffM. H. Bryan

C. S. YoungW. H. Snyder»J. H. Dillard

0. M. AtteberyC M . Stewart *

H. I. Ziemer 3

E. W. Swanson

H. G. LeedyJ. W. Helm 3

R. B. ColemanW. J. EvansW. 0. Ford 2

W. M. HaleC. E. Earhart *R. B. West

i Deputy chairman. 2 Cashier. 3 Also cashier.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS

Federal Reserve Bank of—

New York:Buffalo Branch

Cleveland:Cincinnati Branch _.Pittsburgh Branch _

Richmond:Baltimore BranchCharlotte Branch.__

Atlanta:Birmingham BranchJacksonville BranchNashville Branch. _.New Orleans Branch

Chicago:Detroit Branch _ _

St. Louis:Little Rock BranchLouisville BranchMemphis Branch

Managing director

R. M. O'Hara

B. J. LazarP. A. Brown

W. R. MilfordW. T. Clements

P. L. T. BeaversG. S. Vardeman, Jr.J. B. Fort, Jr.L. M. Clark

R. H. Buss

A. F. BaileyF. D. RashW. H. Glasgow

Federal Reserve Bank of—

Minneapolis:Helena Branch

Kansas City:Denver BranchOklahoma City BranchOmaha Branch _ _ __

Dallas:El Paso BranchHouston BranchSan Antonio Branch

San Francisco:Los Angeles Branch _Portland Branch.Salt Lake City BranchSeattle Branch.. _ _ __ _

Managing director

R. E. Towle

J. E. OlsonC. E. DanielL. H. Earhart

J. L. HermannW. D. GentryM. Crump

W. N. AmbroseD. L. DavisW. L. PartnerC. R. Shaw

SUBSCRIPTION PRICE OF BULLETIN

The FEDERAL RESERVE BULLETIN is an official publication of the Board of Governors ofthe Federal Reserve System. The BULLETIN is issued monthly and is sent to member bankswithout charge. To others the subscription price, which covers the cost of paper and print-ing, is as follows: in the United States, Canada, Mexico, and insular possessions, $2.00 peryear and 20 cents per single copy; elsewhere, $2.60 per year and 25 cents per single copy.

1152


INDEX TO VOLUME 25

PageAcceptances:

Bankers':Outstanding 54, 130, 206, 314,

414, 508, 585, 664, 796, 906, 996, 1112Buying rates 55, 131, 207, 315,

415, 509, 586, 665, 797, 907, 997, 1113Discount rates, open market .56, 132, 208, 316,

416, 510, 587, 666, 798, 908, 998, 1114Member bank holdings:

All banks on call dates:Mar. 29, 1939 489June 30, 1939 728Monthly table 48, 124, 200

(See also Open market paper.)Africa. (See South Africa; West Africa.)Agricultural credit institutions. (See Farm

credit agencies.)Albania:

National Bank of:Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1025, 1141Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Algeria:

Decree approving convention betweenFrench Government and Bank of Algeria 976

Allen, P. R., reelected Class B Director, FederalReserve Bank of Boston 7

Anthracite. (See Coal.)Argentina:

Central Bank of:Annual report, 1938 1077-1094Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1025, 1141Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Foreign exchange rates 84, 160, 236, 346,

447, 541, 619, 700, 831, 941, 1031, 1147Gold movements to and from U. S. .46, 122, 198,

306, 406, 500, 577, 656, 788, 898, 988, 1104Assets and liabilities. (See Condition state-

ments.)Austin, R. L., retirement as Class C Director

and Chairman and Federal Reserve Agent,Philadelphia 8

Australia:Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1025, 1141

Foreign exchange rates 84, 160, 236, 346,447, 541, 619, 700, 831, 941, 1031, 1147

Gold movements to and from U.S.. .46, 122, 198,306, 406, 500, 577, 656, 788, 898, 988, 1104

Gold production 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

Austria:Foreign exchange rates 84, 160, 236, 346,

447, 541, 619Automobiles. (See Transportation equipment.)

PageBalance of international payments of United

States:July, 1914-Dec, 1918 10431936-1937 311937-1938 975

Balance of trade of United States:Discussion of 92, 96, 551, 1048

Balance sheets. (See Condition statements.)Bank credit. (See Credit, Bank.)Bank debits. (See Debits to individual accounts.)Bank directorates, Interlocking:

Board of Governors statement on 719President's veto message on S. 2150 719Regulation L, amended 719

Bank failures. (See Banks: Suspensions.)Bank for International Settlements:

Annual report, 1938 746-772Condition 81, 157, 233, 343,

445, 538, 616, 696, 828, 938, 1028, 1144Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Bank mergers. (See Banks: Consolidations,

absorptions, etc.)Bank premises:

Member banks:Dec. 31, 1938 264Mar. 29, 1939 489June 30, 1939 728

Bank supervision:"Problems of Banking and Bank Supervi-

sion" 97Bankers' acceptances. (See Acceptances.)Bankers' balances:

Discussion of 712-713Member bank holdings:

All banks on call dates:Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthly table 49, 125, 201, 309, 409,

503, 580, 659, 791, 901, 991, 1107Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures. . . 50, 126, 202, 311, 411,

505, 582, 661, 793, 903, 993, 1109By districts and for Chicago, Wed-

nesday figures 52, 128, 204, 313, 413,507, 584, 663, 795, 905, 995, 1111

Banking and financial legislation:Branch banking laws, Federal and State

851-870Federal Reserve membership requirement

for State insured banks repealed 559Federal Reserve notes, Direct obligations of

U. S. as collateral for, until June 30, 1941 637Foreign. (See under name of country.)Gold Reserve Act of 1934, amended 638Loans to executive officers of member banks

extended 559Neutrality Act of 1939:

Financial transactions under 1054

1153


1154 INDEX TO VOLUME 25

Page

Banking and financial legislation—Continued.Reconstruction Finance Corporation and

related agencies continued 253-254Trust Indenture Act of 1939, note on 851

Banking developments:Discussion of 243, 456

Banking funds:Discussion of 353, 709-714Movement to U. S. from abroad:

July-Sept., 1938 32-33Oct.-Nov., 1938 184-1851938 290-291Description of tables 284-287Monthly table 437, 531, 609, 689, 821,

931, 1021, 1137Banking offices:

Number of:1933-1939, by classes 109, 477, 1065

Banks:Branches. (See Branch banks.)Consolidations, absorptions, etc.:

1938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066

Loans to, by member banks:All banks on call dates:

Dec. 31, 1938 264Mar. 29, 1939 489June 30, 1939 728Monthly table. . 48, 124, 200, 308, 408,

502, 579, 658, 790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and outsideN. Y. C , monthly and Wednes-day figures. . 5 0 , 126, 202, 310, 410,


nesday figures .52, 128, 204, 312, 412,506, 583, 662, 794, 904, 994, 1110

Loans to, by Reconstruction Finance Cor-poration 60, 136, 212, 320, 420,

514, 591, 670, 802, 912, 1002, 1118Number of:

Call dates:1933-1939 109, 477, 10651938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066Monthly table . 4 7 , 123, 199, 307, 407,

501, 578, 657, 789, 899, 989, 1105Group banks:

Dec. 31, 1938 480Operating branches:

Dec. 31, 1938, by States 479Group banks, Dec. 31, 1938 480

Suspensions:Monthly table. . 4 6 , 122, 198, 306, 406, 500,

577, 656, 788, 898, 988, 1104(See also Federal Reserve banks; Member

banks; National member banks; Non-member banks; State banks; State mem-ber banks.)

Banks for cooperatives:Loans outstanding 61, 137, 213, 321,

421, 515, 592, 671, 803, 913, 1003, 1119Belgian Congo:

Bank of:Condition 825, 935, 1025, 1141

Gold production 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

PageBelgium:


Gold movements to and from U . S . 46, 122,198, 306, 406, 500, 577, 656, 788, 898, 988, 1104

Money rates 81, 157, 233, 343,445, 538, 616, 696, 828, 938, 1028, 1144

National Bank of:Annual report, 1938 279-283Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1025, 1141Discount ra te :

Changes in 445, 539, 697Monthly table . 8 2 , 158, 234, 344, 445,

539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Treasury gold reserves 606, 686, 818, 928,

1018, 1134Belligerents:

Credits to, regulations 961Financial transactions under Neutrality

Act '.1054Foreign resources 1041-1043

Biddle, Francis, appointed Deputy Chairman,Federal Reserve Bank of Philadelphia 7

Bills:Bought in open market by Federal Reserve

banks:All banks combined, end of month and

Wednesday figures 38, 114, 190, 298,398, 492, 569, 648, 780, 890, 980, 1096

Each bank, Wednesday figures. .40, 116,192,300, 400, 494, 571, 650, 782, 892, 982, 1098

Discounted by Federal Reserve banks:All banks combined, end of month and


Each bank, Wednesday figures 40, 116,192,300, 400, 494, 571, 650, 782, 892, 982, 1098

Federal Reserve bank holdings:Maturity distribution . 3 9 , 115, 191, 299,

399, 493, 570, 649, 781, 891, 981, 1097Payable by member banks. (See Borrowings.)

Bituminous coal. (See Coal.)Board of Governors of Federal Reserve System:

Members and officers 88, 164, 240, 350,452, 546, 624, 704, 836, 946, 1036, 1151

Press statements:Advances to member and nonmember

banks 840Check clearing and collection 719Interlocking bank directorates 719Monetary measures and objectives. . . .363-

364, 461Price stabilization 255-259, 461

Publications:Annual report, 1938 97Federal Reserve System—Its Purposes

and Functions 461List of 37, 568Member bank condition reports revised

22, 259-262Monetary Measures and Objectives . . . 461Problems of Banking and Bank Super-

vision 97Stocks registered, Jan. 31, 1939 173

Bolivia:Central Bank of:

Condition 78. 154, 230, 340,441, 535, 613, 693, 825, 935, 1025, 1141


INDEX TO VOLUME 25

PageBolivia—Continued.

Central Bank of—Continued.Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Bonds:

Collateral loans on. (Ruling.) 362New issues. (See Capital issues.)Prices:

Discussion of 628-629Principal countries 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149United States 57, 133, 209, 317,

417, 511, 588, 667, 799, 909, 999, 1115United States Government. (See United

States Government securities.)Yields:

Charts 629, 840Discussion of 628-629, 840Monthly and weekly figures 56, 132, 208,

316, 416, 510, 587, 666, 798,908, 998, 1114

National summary 98, 175,250, 556, 633, 958

Boots and shoes. (See Leather and leather prod-ucts.)

Borrowings:Member banks:

All banks on call dates:Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthlv table . 49, 125, 201, 309, 409,

503, 580, 659, 791, 901, 991, 1107Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures . .51,-127, 203, 311, 411,505, 582, 661, 793, 903, 993, 1109

By districts and for Chicago, Wed-nesday figures 53, 129, 205, 313, 413,

507, 584, 663, 795, 905, 995, 1111Brainard, George C, designated Chairman and

Federal Reserve Agent, Cleveland 7Branch banks:

1933-1939 109, 477,10651938, by States 4791938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066Group bank branches:

Dec. 31, 1938 480Laws, Federal and State 851-870

Brazil:Bank of:

Condition 78Gold reserves 74, 150, 226, 336,


447, 541, 619, 700, 831, 941, 1031,1147Breithut, R. C 265, 468British India. (See India, British.)Brokers and dealers in securities:

Loans to, by member banks:All banks on call dates:

Mar. 29, 1939 489June 30, 1939 728Monthly table 48, 124, 200, 308,

408, 502, 579, 658, 790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and outside

1155

PageBrokers and dealers in securities—Continued.

Loans to, by member banks—Continued.Reporting banks—Continued.

N. Y. C, monthly and Wednes-day figures 50, 126, 202, 310,410, 504, 581, 660, 792, 902, 992, 1108

By districts and for Chicago, Wed-nesday figures 52, 128, 204, 312,412, 506, 583, 662, 794, 904, 994, 1110

Margin accounts, Debit balances in. (SeeBrokers' balances.)

Broker's balances:Monthly table 54, 130, 206, 314,

414, 508, 585, 664, 796, 906, 996, 1112Movement to U. S. from abroad:

July-Sept., 1938 33Oct.-Nov., 1938 1851938 294Description of tables 284-287Monthly table 438, 532, 610, 690,

822, 932, 1022, 1138Brooks, F. F., reelected Class A Director, Fed-

eral Reserve Bank of Cleveland 6Building contracts. (See Construction con-

tracts.)Building materials:

Prices, Discussion of 953Wholesale price indexes 71, 147, 223, 331,

431, 525, 602, 681, 813, 923, 1013, 1129Bulgaria:



441, 535, 613, 693, 825, 935, 1025, 1141Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Burke, E. S., Jr., retirement as Class C Director

and Chairman and Federal Reserve Agent,Cleveland 8

Business and credit conditions:Discussion of 1, 91, 167, 243, 353,

455, 549, 627, 709, 839, 949, 1039, 1048National summary 8, 97, 174, 249

357, 462, 555, 632, 715, 846, 957, 1050Statistical summary 11, 100, 177, 252,

360, 465, 558, 635, 718, 849, 960, 1053Caldwell, R. B., designated Chairman and Fed-

eral Reserve Agent, Kansas City 7Canada:

Bank of:Annual report, 1938 392-395Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1025, 1141Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939. 1029. 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Commercial banks . 83. 159. 235, 345,


447, 541, 619, 700, 831, 941, 1031, 1147Gold movements to and from U. S. 46, 122, 198,

306, 406, 500, 577, 656, 788, 898, 988, 1104Gold production 75, 151, 227, 337,

435, 529, 607, 687, 819, 929, 1019, 1135Wholesale price indexes . 85, 161, 237, 347,

448, 542, 620, 701, 832, 942, 1032, 1148Cannon, Harry L., elected Class B Director, Fed-

eral Reserve Bank of Philadelphia 7



PageCapital:

Federal Reserve banks 40, 116, 192, 300,400, 494, 571, 650, 782, 892, 982, 1098


Capital accounts:Member banks:

All banks on call dates:Dec. 31, 1938 264Mar. 29,1939 488June 30, 1939 727Monthly table 309, 409, 503, 580,

659, 791, 901, 991, 1107Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures 51, 127, 203, 311,411, 505, 582, 661, 793, 903, 993, 1109


Capital issues:Discussion of 172, 630Monthly figures 57, 133, 209, 317,

417, 511, 588, 667, 799, 909, 999, 1115Capital movement to United States:

Discussion of. . . .92-96, 247, 455, 549, 1039-1043Statistics:

July-Sept., 1938 32-34Oct.-Nov., 1938 184-1861938 288-289Description of tables 284-287Monthly table 437, 531, 609, 689, 821,

931, 1021, 1137Capital movements, International:

Discussion of 92-96, 1039Car loadings, Freight. (See Freight-car loadings.)Cash:

Member bank holdings:All banks on call dates:

Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthly table . . 4 9 , 125, 201, 309,

409, 503, 580, 659, 791, 901, 991, 1107Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures . . 50, 126, 202, 311, 411,


nesday figures 52, 128, 204, 313,413, 507, 584, 663, 795, 905, 995, 1111

Cement:Factory employment index:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125

Factory payrolls index 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125

Production index:Adjusted 63, 139, 215, 323,

423, 517, 594, 673, 805, 915, 1005, 1121Unadjusted 64, 140, 216, 324,

424, 518, 595, 674, 806, 916, 1006, 1122Wholesale price index 71, 147, 223, 331,

431, 525, 602, 681, 813, 923, 1013, 1129

PageCentral America:

Gold movements to and from U. S.. .46, 122, 198,306, 406, 500, 577, 656, 788, 898, 988, 1104

Central banks. (See under name of country, e.g.France: Bank of.)

Central reserve city member banks:Condition on call dates:

Dec. 31, 1938 264Mar. 29, 1939 488-489June 30, 1939 727-728Monthly table 48, 124, 200, 308,

408, 502, 579, 658, 790, 900, 990, 1106Deposits 44, 120, 196, 304,

404, 498, 575, 654, 786, 896, 986, 1102Reserves:

Monthly and weekly figures 44, 120, 196,304, 404, 498, 575, 654, 786, 896, 986, 1102

Certificates of deposit:Payment or renewal of time certificates

maturing on Sunday. (Ruling.) 850Charts:

American investment abroad and foreign in-vestment in U. S. 95

Bond yields 629, 840Chart book statistics . 111-112, 224, 332-333, 432,

526, 603-604, 683, 815, 925, 1015, 1131-1132Commercial loan rates at banks in principal

cities 963Condition of member banks by classes of

banks 712Construction contracts awarded . 8, 170, 249, 459Department store sales and stocks. . 171, 463, 846Deposit behavior study 269, 469Distribution of commercial loans according

to interest rates charged 17, 725Earnings and expenses of member banks 373Excess reserves of member banks 98, 358Exchange quotations for leading countries . 353Exchange rates in New York 1040Exports of U. S. merchandise 552Factors of gain and losses of reserve funds . 711Factory employment 9, 98,174,

250, 458, 463, 632Factory employment, hours and earnings

458, 463Foreign trade of the United States . . 552, 1048Freight-car loadings 556, 633, 715, 958Industrial production 8, 20, 97, 169, 174,

249, 456, 462, 555, 632, 715, 844, 846Industrial production, United Kingdom and

France 1046Interest-bearing debt of U. S. Government. . 2Investments of country banks 245Manufacturing production 357, 1050Member bank reserves and related items 10, 99,

176, 251, 359, 464, 557, 634,716, 717, 848, 959, 1052

Member banks in 101 leading cities 9, 175, 244,358, 556, 633, 958, 1051

Money in circulation 355Money rates in New York City 175,

250, 463, 847, 1051National income payments 168, 455Resources of Foreign Monetary Authorities

with Federal Reserve Banks 549Stock prices 629, 841Wholesale prices 97, 358, 460, 556,

716, 843, 847, 950, 951, 958, 1051Yields on U. S. Government securities. . . . 3

Check clearing and collection:Regulation J, revised 719-721


INDEX TO VOLUME 25

Chemicals:Factory employment index:

Adjusted 65, 141, 217, 325, 425,596, 675, 807, 917, 1007,

Unadjusted 67, 143, 219, 327, 427,598, 677, 809, 919, 1009,

Factory payrolls index. . .67, 143, 219, 327,521, 598, 677, 809, 919, 1009,

Prices, Discussion ofWholesale price indexes .71, 147, 223, 331,

525, 602, 681, 813, 923, 1013,Chile:

Central Bank of:Condition. . .78, 154, 230, 340, 441, 535,

693, 825, 935, 1026,Discount rate. . . 82, 158, 234, 344, 445,

617, 697, 829, 939, 1029,Gold reserves. . . . 74, 150, 226, 336, 434,

606, 686, 818, 928, 1018,Foreign exchange rates. . .84, 160, 236, 346,

541, 619, 700, 831, 941, 1031,Gold movements to and from U. S. 46, 122,

306, 406, 500, 577, 656, 788, 898, 988,Gold production 75, 151, 227, 337, 435,

Page

519,1123521,1125427,1125951431,1129

China:Central Bank of:

Gold reserves

607, 687, 819, 929, 1019,

613,1142539,1145528,1134447,1147198,1104529,1135

. 74, 150, 226, 336, 434, 528,606, 686, 818, 928, 1018, 1134

Foreign exchange rates .84, 160, 236, 346, 447,541, 619, 700, 831, 941, 1031, 1147

Gold movements to and from U. S. 46, 122, 198,306, 406, 500, 577, 656, 788, 898, 988, 1104

Cigars and cigarettes. (See Tobacco: Manu-factures.)

Closed banks. (See Banks: Suspensions.)Coal:

Freight-car loadings indexes .70, 146, 222, 330,430, 524, 601, 680, 812, 922, 1012, 1128

Production indexes:Adjusted 63, 139, 215, 323, 423, 517,

594, 673, 805, 915, 1005, 1121Unadjusted . . 64, 140, 216, 324, 424, 518,

595, 674, 806, 916, 1006, 1122Wholesale price indexes . . 71, 147, 223, 331,

431, 525, 602, 681, 813, 923, 1013, 1129Coffey, W. C, appointed Deputy Chairman, Fed-

eral Reserve Bank of Minneapolis 7Coin:

Circulation 45, 121, 197, 305, 405,576, 655, 787, 897, 987,

Coke:Freight-car loadings indexes 70, 146,

330, 430, 524, 601, 680, 812, 922, 1012,Production indexes:

Adjusted

Unadjusted

Collier, Raymond J.Colombia:

Bank of:Condition . .

63, 139, 215, 323, 423,594, 673, 805, 915, 1005,

64, 140, 216, 324, 424,595, 674, 806, 916, 1006,

499,1103

222,1128

517,1121518,

1122963

. 78, 154, 230, 340, 441, 535,613, 693, 825, 935, 1026, 1142

Discount rate. 82, 158, 234, 344, 445, 539,617, 697, 829, 939, 1029, 1145

Gold reserves. 74, 150, 226, 336, 434, 528,606, 686, 818, 928, 1018, 1134

Foreign exchange rates 84, 160, 236, 346, 447,541, 619, 700, 831, 941, 1031, 1147


Colombia—Continued.Gold production. .

1157

Page

Commercial failures.

. .75, 151, 227, 337, 435, 529,607, 687, 819, 929, 1019, 1135. .69, 145, 221, 329, 429, 523,600, 679, 811, 921, 1011, 1127

Commercial, industrial and agricultural loans:Commercial loans, Discussion of increase in. 841Member banks:

All banks on call dates:Mar. 29, 1939 489June 30, 1939 728Monthly table 308, 408, 502, 579,

658, 790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures . .50, 126, 202, 310, 410,


nesday figures . 52, 128, 204, 312, 412,506, 583, 662, 794, 904, 994, 1110

Term loans to commercial and industrialconcerns 560-562

Commercial paper:Discount rates, open market 56, 132, 208, 316,

416, 510, 587, 666, 798, 908, 998, 1114Member bank holdings:

All banks on call dates:Mar. 29, 1939 489June 30, 1939 728Monthly table 48, 124, 200

Outstanding 54, 130, 206, 314, 414, 508,585, 664, 796, 906, 996, 1112

(See also Open market paper.)Commodity Credit Corporation:

Act continuing functions 254Assets and liabilities . . 60, 136, 212, 320, 420,

514, 591, 670, 802, 912, 1002, 1118Guaranteed obligations outstanding . . . 58, 134,

210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116Summary of operations, 1938

Commodity prices. (See Prices.)Comptroller of the Currency:

Condition report form revised.Condition statements:

All banks in U. S.:Sept. 28, 1938Dec. 31, 1938Mar. 29, 1939June 30, 1939

Bank for International Settlements

365-371

22

24-28382-386563-567970-97481, 157.

233, 343, 445, 538, 616, 696, 828, 938, 1028, 1144Federal Reserve banks:

All banks combined, end of month andWednesday figures 39, 115, 191, 299,

399, 493, 570, 649, 781, 891, 981, 1097Each bank, Wednesday figures . 40, 116,

192, 300, 400, 494, 571,650, 782, 892, 982, 1098

Foreign central banks 77, 153, 229, 339,440, 534, 612, 692, 824, 934, 1024, 1140

Foreign commercial banks 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Governmental corporation and creditagencies:

Monthly table 60, 136, 212, 320, 420,514, 591, 670, 802, 912, 1002, 1118

Summary of operations 365-371Insured commercial banks:

Dec. 31, 1938 . . . . 381June 30, 1939 877



PageCondition statements—Continued.

Member banks:All banks on call dates:

Dec. 31, 1938 264,Mar. 29, 1939 488-489June 30, 1939 727-728Monthly table. . .48, 124, 200, 308, '408,

502, 579, 658, 790, 900, 990, 1106Selected dates, 1933-1938 263

Chart 712Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures . . 50, 126, 202. 310, 410,


nesday figures 52, 128, 204, 312, 412,506, 583, 662, 794, 904, 994, 1110

Revised form 22, 259-262Consolidations, absorptions, etc. (See Banks:

Consolidations, absorptions.)Construction contracts awarded, Value of:

By types of construction and financing, andby districts 69, 145, 221, 329, 429, 523,

600, 679, 811, 921, 1011, 1127Charts 8, 170, 249, 459Discussion of 169, 455, 458-459, 949, 955Indexes 62, 138, 214, 322, 422, 516, 593,

672, 804, 914, 1004, 1120National summary. . 8, 98, 174, 249, 357, 462,

555, 632, 715, 846, 957, 1050Corn crop reports 72, 682, 814, 924, 1014, 1130Corporations and credit agencies, Governmental.

(See Governmental corporations and creditagencies.)

Cost of living:Indexes, principal countries 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Cotton:

Crop reports 72, 682, 814, 924, 1014, 1130Manufactures. (See Textiles.)

Country member banks:Condition on call dates:

Dec. 31, 1938 264Mar. 29, 1939 488-489June 30, 1939 727-728Monthly table. . 48, 124, 200, 308, 408, 502,

579, 658, 790, 900, 990, 1106Deposits:

Monthly figures 44, 120, 196, 304, 404,498, 575, 654, 786, 896, 986, 1102

Reserves:Monthly and weekly figures . 44, 120, 196,

304, 404, 498, 575, 654, 786, 896, 986, 1102Cozzo, J. B., appointed Class C Director, Federal

Reserve Bank of Dallas 554Crabbs, G. D., reelected Class B Director, Fed-

eral Reserve Bank of Cleveland 7Credit, Bank:

Federal Reserve:End of month and Wednesday figures,

38, 114, 190, 298, 398, 492, 569, 648,780, 890, 980, 1096

Monthly and yearly averages of dailyfigures. .11, 100, 177, 252, 360, 465, 558,

635, 718, 849, 960, 1053Member banks:

Discussion of 171, 243-246, 354,456, 631, 709-714

National summary 9, 98, 175, 250, 358, 462,556, 633, 716, 847, 958, 1051

PageCredit agencies, Governmental. (See Govern-

mental corporations and credit agencies.)Credit control:

Board of Governors statement on Monetarymeasures and objectives 363-364, 461

Credit union notes:Eligibility for discount by F. R. banks.

(Ruling.) 361Crops:

National summary 633, 716, 847Reports, by districts 72, 682,

814, 924, 1014, 1130Cuba:

Banking and financial legislation:June, 1939. Stabilization fund estab-

lished 742July, 1939. Settlement in pesos of

obligations contracted in U. S. dol-lars ; 744

Foreign exchange rates 84, 160, 236, 346, 447,541, 619, 700, 831, 941, 1031, 1147

Currency circulation. (See Money in circulation.)Currie, Lauchlin B. :

Appointed Administrative Assistant to Pres-ident of United States 631

Deposit behavior studies 178, 871Curtiss, F. H.:

Reappointed Class C Director, Federal Re-serve Bank of Boston 7

Redesignated Chairman and Federal Re-serve Agent, Boston 7

Customers' debit balances of Stock Exchangefirms. (See Brokers' balances.)

Customers' loans, Rates on. (See Interest rates:Charged customers by banks; Interest rates:Commercial loan rates.)

Czechoslovakia:Foreign exchange r a t e s . . . 84, 160, 236, 346,

447, 541, 619, 700, 831, 941, 1031, 1147National Bank of:

Condition. . .78, 154, 230, 340, 441, 535,613, 693, 825, 935, 1026, 1142

Discount rates. . 82, 158, 234, 344, 445, 539,617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336, 434,528, 606, 818, 928, 1018, 1134

Danzig:Bank of:

Condition 78, 154, 230, 340, 441, 535,613, 693, 825, 935, 1026, 1142

Discount rate 82,158, 234, 344, 445,539, 617, 697, 829, 939, 1029, 1145

Debits to individual accounts:Monthly table 46, 122, 198, 306, 406,

500, 577, 656, 788, 898, 988, 1104Debt, U. S. Government. (See Treasury finance:

Public debt.)Deficit, U. S. Treasury. (See Treasury finance:

Deficit.)Denmark:

Foreign exchange rates . . . 84, 160, 236, 346,447, 541, 619, 700, 831, 941, 1031, 1147

National Bank of:Condition 78, 154, 230, 340, 441, 535,

613, 693, 825, 935, 1026, 1142Discount rate:

Changes in 234, 939, 1029Monthlv table 82, 158, 234, 344, 445,

539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336, 434, 528,

606, 686, 818, 928, 1018, 1134


INDEX TO VOLUME 25 1159Page

Dennison, Henry S., reappointed Deputy Chair-man, Federal Reserve Bank of Boston 7

Department store sales and stocks:Charts 171, 463, 846Discussion of 170, 949Index of sales (value) :

Monthly figures 70, 146, 222, 330, 430,524, 601, 680, 812, 922, 10.12, 1128

Yearly and monthly figures . 62, 138, 214,322, 422, 516, 593, 672,

804, 914, 1004, 1120Index of stocks (value) :

Monthly figures . 7 0 , 146, 222, 330, 430,524, 601, 680, 812, 922, 1012, 1128

National summary 9, 98, 174, 250, 357, 463,556, 632, 716, 846, 957, 1050

Deposits:All banks in U. S.:

Call dates:Sept. 28, 1938 24-28Dec. 31, 1938 382-386Mar. 29, 1939 563-567June 30, 1939 970-974Monthly table . .47, 123, 199, 307, 407,

501, 578, 657, 789, 899, 989, 1105Behavior study: 178-183, 265-270, 468-476

Analysis by size of accounts 178-183Analysis by type of deposit holder. . 265-270Charts:

Movement of deposits prior to sus-pension 469

Percentage reductions in demanddeposits, classified 269

Demand deposit accounts, Changes innumber 476

Location of banks supplying data 179Scope of data 178Summary of results 178Timing of deposit reductions 468-476

Demand:Distribution by economic classes of de-

positors, 1933, 1935 and 1936 871-874Federal Reserve banks:

All banks combined, end of month andWednesdav figures 39, 115, 191, 299,

399, 493, 570, 649, 781, 891, 981, 1097Each bank, Wednesday figures 40, 116,

192, 300, 400, 494, 571,650, 782, 892, 982, 1098

Group banks, Dec. 31, 1938 480Insurance of. (See Insurance of deposits.)Insured: survey, Sept. 21, 1939 101-104Insured commercial banks:

Dec. 31, 1938 381June 30, 1939 877

Interest on. (See Interest on deposits; In-terest rates.)


Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthly table . 49, 125, 201, 309, 409,

503, 580, 659, 791, 901, 991, 1107Charts 244, 712Classes of banks . 44, 120, 196, 304, 404,

498, 575, 654, 786, 896, 986, 1102Discussion of 456, 631, 709, 713Larger and smaller centers . . . . 44, 120,

196, 304, 404, 498, 575, 654, 786, 896.986, 1102

PageDeposits—Continued.

Member banks—Continued.Reporting banks:

All banks, N. Y. C. and outside N.Y. C, monthly and Wednesdayfigures 51, 127, 203, 311, 411,

505, 582, 661, 793, 903, 993, 1109By districts and for Chicago,


Mutual savings banks:Sept. 28, 1938 28Dec. 31, 1938 386Mar. 29, 1939 567June 30, 1939 974

National member banks:Sept. 28, 1938 26Dec. 31, 1938 384Mar. 29, 1939 565June 30, 1939 972

Nonmember deposits in Federal Reservebanks:

End of month and Wednesday figures . 38,114, 190, 298, 398, 492, 569, 648, 780,

890, 980, 1096Personal loans:

Funds for retiring personal loans asdeposits. (Ruling.) 637

Postal Savings System. (See Postal Sav-ings deposits.)

Private banks:Sept. 28, 1938 28Dec. 31, 1938 386Mar. 29, 1939 567June 30, 1939 974

Reserves required against. (See Reserverequirements.)

Savings:Payment of interest on. (See Interest

on deposits.)State banks:

Sept. 28, 1938 27Dec. 31, 1938 385Mar. 29, 1939 566June 30, 1939 973

Suspended banks:Monthly table 46, 122, 198, 306,

406, 500, 577, 656, 788, 898, 988, 1104Time:

Distribution by economic classes of de-positors, 1933, 1935 and 1936 873

Directorates, Interlocking. (See Bank directo-rates, Interlocking.)

Discount rates:Federal Reserve banks:

Discussion of 840Monthly table 55, 131, 207, 315,

415, 509, 586, 665, 797, 907, 997, 1113Foreign central banks:

Prevailing rates 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Discounts and advances:Federal Reserve banks for member banks:

Board of Governors statement on 840Credit union notes. (Ruling.) 361Regulation G repealed 361

Distribution:National summary 9,98, 174, 250,

357, 463, 556, 632, 716, 846, 957, 1050Dividends:

Federal Reserve banks:Jan.-June, 1939 640



Page

Dividends—Continued.Member banks:

1938 372-379Jan.-June, 1939 875

Dollar, Weight of:Act extending powers relating to alteration

of 638Durable goods:

Estimated expenditures for new durablegoods, 1919-1938 731-736

Factory employment index:Adjusted 65, 141, 217, 325,

425, 519, 595, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,

427, 521, 598, 677, 908, 919, 1009, 1125Factory payrolls index 67, 143, 219, 327,

427, 521, 598, 677, 809, 919, 1009, 1125Prices, Discussion of. . . 953Production index:

Adjusted:1919-1938 21Monthly table 139, 215, 323, 423,

517, 594, 673, 805, 915, 1005, 1121Discussion of 20Unadjusted:

1923-1938 21Monthly table 140, 216, 324, 424,

518, 595, 674, 806, 916, 1006, 1122Earmarked gold. (See Gold: Earmarked.)Earnings and expenses:

Federal Reserve banks:Jan.-June, 1939 640

Member banks:1938 and 1937 372-379

By classes of banks 374By districts 375-377By six-month periods during 1938 378Discussion 372

Jan.-June, 1939 874-875Chart 373Operating ratios, 1938:

By size groups and geographicdivisions 481-486

Eccles, Marriner S.:Introductory remarks at ceremony on 25th

anniversary of signing of Federal ReserveAct 13

Ecuador:Central Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1026, 1142

Discount rate 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Gold movements to and from U. S.. . . 46, 122,198, 306, 406, 500, 577, 656, 788, 898,

988, 1104Egypt:



441, 535, 613, 693, 825, 935, 1026, 1142Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134El Salvador:

Central Reserve Bank of:Condition . 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1026, 1142Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145

PageEmployment, Factory:

Charts 9, 98, 174, 250, 458, 463, 632Discussion of 168, 457Indexes:

Adjusted:By industries, monthly figures. . 65, 141,

217, 325, 425, 519, 596, 675, 807,917, 1007, 1123

Total, monthly figures 62, 138,214, 322, 422, 516, 593, 672, 804,

914, 1004, 1120Unadjusted:

By industries, monthly figures. . 67, 143,219, 327, 427, 521, 598, 677, 809,

919, 1009, 1125Total, yearly and monthly figures. . 62,

138, 214, 322, 422, 516, 593, 672,804, 914, 1004, 1120

National summary 9, 98, 174,249, 462, 556, 632, 715, 1050

England. (See United Kingdom.)Estonia:

Bank of:Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1026, 1142Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Exchange stabilization funds:

Gold reserves 606, 686, 818, 928, 1018, 1134Executive officers of member banks:

Definition of "Executive officer" changed.Regulation O, amended 636

Loans to:Public act extending period 559

Expenditures, U. S. Treasury. (See Treasuryfinance: Expenditures.)

Expenses. (See Earnings and expenses.)Export-Import Bank:

Act continuing functions 254Loans outstanding, Dec. 31, 1938 365, 371

Exports. (See Foreign trade.)Factory employment. (See Employment, Factory.)Failures, Bank. (See Banks: Suspensions.)Failures, Commercial. (See Commercial failures.)Farm Credit Administration:

Banks and corporations:Assets and liabilities. . . . 60, 136, 212, 320,

420, 514, 591, 670, 802, 912, 1002, 1118Loans and discounts outstanding, by insti-

tutions 61, 137, 213, 321,421, 515, 592, 671, 803, 913, 1003, 1119

Summary of operations of institutions un-der, 1938 365-370

(See also Governmental corporations andcredit agencies.)

Farm credit agencies:Assets and liabilities 60, 136, 212, 320,

420, 514, 591, 670, 802, 912, 1002, 1118Summary of operations, 1938 365-371

Farm mortgage agencies:Assets and liabilities 60, 136, 212, 320,


Farm products:Wholesale price indexes:

Principal countries 85, 161, 237, 347,448, 542, 620, 701, 832, 942, 1032, 1148

United States 71, 147, 223, 331,431, 525, 602, 681, 813, 923, 1013, 1129

Farm Security Administration:Summary of operations, 1938 370-371


INDEX TO VOLUME 25 1161

PageFederal Advisory Council:

Meeting 172Members 88, 164, 240, 350,

452, 546, 624, 704, 836, 946, 1036, 1151Federal Deposit Insurance Corporation:

Condition report form revised 22Deposits covered: survey, Sept. 21, 1938 101-104Federal Reserve membership requirement

for State insured banks repealed 559Federal Farm Mortgage Corporation:

Guaranteed obligations outstanding .58 , 134,210, 318, 418, 512, 589, 668, 800,

910, 1000, 1116Summary of operations, 1938 369-370

Federal Home Loan Bank Board:Loans outstanding, by' institutions 61, 137,

213, 321, 421, 515, 592, 671, 803,913, 1003, 1119

Summary of operations of institutions un-der, 1938 368

(See also Governmental corporations andcredit agencies.)

Federal Home Loan Banks:Loans to members 61, 137, 213, 321,

421, 515, 592, 671, 803, 913, 1003, 1119Federal Housing Administration:

Summary of operations, 1938 369Federal intermediate credit banks:

Loans and discounts outstanding. .61, 137, 213,321, 421, 515, 592, 671, 803, 913, 1003, 1119

Federal land banks and Land Bank Commissioner:Loans outstanding 61, 137, 213, 321,


Federal National Mortgage Association:Summary of operations, 1938 365, 368

Federal Open Market Committee:Members and officers 88, 164, 240, 350,

452, 546, 624, 704, 836, 946, 1036, 1151Policy statement 6Statement on reduction of holdings of Treas-

ury bills 630Federal Reserve Act:

Amendments, 76th Congress:Federal Reserve membership require-

ment for State insured banks repealed 559Loans to executive officers of member

banks extended 559Ceremony on 25th Anniversary of the sign-

ing of 13-16Federal Reserve Agents:

Accounts. (See Federal Reserve notes:Agents' accounts.)

Appointments. (See Federal Reservebanks: Chairmen and Federal ReserveAgents.)

Federal Reserve bank notes:Circulation 45, 121, 197, 305,

405, 499, 576, 655, 787, 897, 987, 1103Federal Reserve banks:

Branches, Managing directors of 89, 165,241, 351, 453, 547, 625, 705, 837,

947, 1037, 1152Chairmen and Federal Reserve Agents:

Designation of 7Retirement of 8

Deputy Chairmen, appointments 7Directors:

Class A and B, election of 6Class C, appointments 7, 248, 554, 714

Federal Reserve banks—Continued.Earnings and expenses:

Jan.-June, 1939 640Officers 89, 165, 241, 351,

453, 547, 625, 705, 837, 947, 1037, 1152Presidents:

Death of B. A. McKinney, Dallas 356Death of Oscar Newton, Atlanta 172R. R. Gilbert, appointed President,

Dallas 356Robert S. Parker, appointed President,

Atlanta . . . 173Vice Presidents:

E. B. Stroud appointed First Vice Presi-dent, Federal Reserve Bank of Dallas 554

W. S. McLarin, Jr., appointed FirstVice President, Federal ReserveBank of Atlanta 956

Federal Reserve chart book:Changes in member bank series 332, 1015Statistics 111-112, 224, 333, 432, 526,

603-604, 683, 815, 925, 1015, 1131-1132Federal Reserve directory 88, 164, 240, 350,

452, 546, 624, 704, 836, 946, 1036, 1151Federal Reserve districts:

Map showing districts on back cover of eachbulletin.

Federal Reserve notes:Agents' accounts 43, 119, 195, 303,

403, 497, 574, 653, 785, 895, 985, 1101Circulation:

Actual:All banks combined, end of month

and Wednesday figures . . . 39, 115,191, 299, 399, 493, 570, 649, 781, 891,

981, 1097Each bank, Wednesday figures . . . 43,

119, 195, 303, 403, 497, 574, 653, 785,895, 985, 1101

Outside Treasury and Federal Reservebanks, end of month figures. .45, 121, 197,305, 405, 499, 576, 655, 787, 897, 987, 1103

Collateral security:Direct obligations of U. S. may be used

as, until June 30, 1941 ' 637Wednesday figures 43, 119, 195, 303,

403, 497, 574, 653, 785, 895, 985, 1101Redemption fund:

All banks combined, end of month andWednesday figures 39, 115, 191,299, 399, 493, 570, 649, 781, 891, 981, 1097

Each bank, Wednesday figures . . 40, 116,192, 300, 400, 494, 571, 650, 782,

892, 982, 1098Federal Reserve System:

State bank membership:Membership requirement for State in-

sured banks repealed 559Regulation H, revised 1054-1064

"Federal Reserve System—Its Purposes andFunctions" 461

Federal Savings and Loan Associations:Mortgage loans 61, 137, 213, 321,

421, 515, 592, 671, 803, 913, 1003, 1119Fiduciary powers of national banks. (See Trust

powers of national banks.)Financial conditions. (See Business and credit

conditions.)Financial legislation. (See Banking and finan-

cial legislation.)



PageFinland:


441, 535, 613, 693, 825, 935, 1026, 1142Discount rate 82, 158, 234, 344,


447, 541, 619, 700, 831, 941, 1031, 1147Floating money, Discussion of 93-96Food and food products:

Factory employment index:Adjusted • 65, 141, 217, 325,

425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,


427, 521, 598, 677, 809, 919, 1009, 1125Prices, Discussion of 954Production indexes:

Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122

Retail price index, principal countries 86, 162,238, 348, 449, 543, 621, 702, 833, 943, 1033, 1149

Wholesale price indexes:Principal countries 85, 161, 237, 347,

448, 542, 620, 701, 832, 942, 1032, 1148United States 71, 147, 223, 331,

431, 525, 602, 681, 813, 923, 1013, 1129Forbes, Allan, reelected Class A Director, Fed-

eral Reserve Bank of Boston 6Foreign banks:

Central banks:Resources in United States:

Chart of 549Discussion of 549-551

(See also France, Bank of; etc.)Commercial banks, condition. .82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Deposits of, held by Federal Reserve banks:


Each bank, Wednesday figures, . 40,116,192,300, 400, 494, 571, 650, 782, 892, 982, 1098

Deposits of, held by member banks:All banks on call dates:

Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthly table 49, 125, 201, 309,

409, 503, 580, 659, 791, 901, 991, 1107Discussion of 711, 842Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures 51, 127, 203, 311,411, 505, 582, 661, 793, 903, 993, 1109


Foreign exchange:Rates:

Chart 353, 1040Discussion of ' 842, 1039-1041Monthly table 84, 160, 236, 346,

447, 541, 619, 700, 831, 941, 1031, 1147Regulations:

France 1041United Kingdom 1039-1041

PageForeign trade of United States:

Chart 552, 1047Discussion of 551-552, 955, 1048

Forest products:Freight-car loadings indexes. . 70, 146, 222, 330,

430, 524, 601, 680, 812, 922, 1012, 1128France:

Bank of:Annual report, 1938 272-278Condition 77, 153, 229, 339,

440, 534, 612, 692, 824, 934, 1024, 1140Discount rate:

Changes in 82, 158Monthly table 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Banking and financial legislation:

Sept. 1, 1939. Decree and conventions.Issuance of 5, 10 and 20 franc notesto replace small coins. Gold reserverequirement of Bank of France sus-pended. Conventions between Gov-ernment and Bank of France andBank of Algeria approved 976

Nov. 12, 1939. Convention and decree.Gold revalued. Advances to Govern-ment increased 29

Commercial banks 83, 159, 235, 345,446, 540, 618, 698, 830, 940, 1030, 1146

Cost of living index 86, 162, 238, 348,449, 543, 621, 702, 833, 943, 1033, 1149

Economic developments, Discussion of 1047Exchange Stabilization Fund:

Gold reserves . 606, 686, 818, 928, 1018, 1134Financial conditions, Discussion of 94Foreign exchange rates 84, 160, 236, 346,

447, 541, 619, 700, 831, 941, 1031, 1147Foreign exchange regulations 1041Gold movements to and from U. S.. .46, 122, 198,

306, 406, 500, 577, 656, 788, 898, 988, 1104Money rates 81, 157, 233, 343,

445, 538, 616, 696, 838, 938, 1028, 1144Retail food price index 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Security prices 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1933, 1149Wholesale price indexes 85, 161, 237, 347,

448, 542, 620, 701, 832, 942, 1032, 1148Freight-car loadings :

Charts 556, 633, 715, 958Indexes:

By classes 70, 146, 222, 330,430, 524, 601, 680, 812, 922, 1012, 1128

Total 62, 138, 214, 322,422, 516, 593, 672, 804, 914, 1004, 1120

National summary 9, 98, 174, 250,357, 463, 556, 633, 716, 846, 957, 1050

Fuel and lighting materials:Prices, Discussion of 954Wholesale price indexes 71, 147, 223, 331,

431, 525, 602, 681, 813, 923, 1013, 1129Fuels, Manufactured:

Production indexes:Adjusted 63Unadjusted 64

Geery, W. B., retirement as Class C Directorand Chairman and Federal Reserve Agent,Minneapolis 8

General fund balance, U. S. Treasury. (SeeTreasury finance: General fund balance.)



PageGeorge, E. T., reelected Class B Director, Fed-

eral Reserve Bank of Atlanta 7Germany:

Banking and financial legislation:June 15, 1939. New German Reichs-

bank law 737Commercial banks 83, 159, 235, 345,

446, 540, 618, 698, 830, 940, 1030, 1146Cost of living index 86, 162, 238, 348,


447, 541, 619, 700, 831, 941, 1031, 1147Gold imports and exports 76, 152, 228, 338,

436, 530, 608, 688, 820, 930, 1020, 1136Gold movements to and from U. S. 46, 122,

198, 306, 406, 500, 577, 656, 788, 898, 988, 1104Money rates 81, 157, 233, 343,

445, 538, 616, 696, 828, 938, 1028, 1144Reichsbank:

Annual report, 1938 773-778Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1025, 1141Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Law governing Reichsbank, June 15,

1939 737Retail food price index 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Security prices 86, 162, 238, 348,


448, 542, 620, 701, 832, 942, 1032, 1148Gilbert, R. R., appointed President of Federal

Reserve Bank of Dallas 356Glass:


• 425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,


427, 521, 598, 677, 809, 919, 1009, 1125Production index:

Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122

Glass, Carter, Bas-relief of:Dedication of 15-16Photograph of facing 1

Gold:Earmarked:

Discussion of 550, 631Monthly table 46, 122, 198, 306,

406, 500, 577, 656, 788, 898, 988, 1104Imports and exports:

Principal countries 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

United States:Gross 46, 122, 198, 306,

406, 500, 577, 656, 788, 898, 988, 1104Net 75, 151, 227, 337,

435, 529, 607, 687, 819, 929, 1019, 1135Movement to U. S., Discussion of 92-96,

247, 353, 455, 549, 709-712, 841, 1039Production:

United States 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

World 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

PageGold—Continued.

Reserves:Central banks and governments:

Discussion of 550-551Monthly table 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134United States 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Stock, Monetary in U. S.:

Analysis of changes in. . . 46, 122, 198, 306,406, 500, 577, 656, 788, 898, 988, 1104

Discussion of 709End of month and Wednesday figures. . .38,

114, 190, 298, 398, 492, 569, 648, 780, 890,980, 1096

Gold certificates:Circulation 45, 121, 197, 305,

405, 499, 576, 655, 787, 897, 987, 1103Federal Reserve bank holdings:


Each bank, Wednesday figures. 40,116, 192,300, 400, 494, 571, 650, 782, 892, 982, 1098

Gold Reserve Act of 1934:Amendment extending powers 638

Government bonds. (See United States Govern-ment securities.)

Government debt. (See Treasury finance: Pub-lic debt.)

Governmental corporations and credit agencies:Assets and liabilities 60, 136, 212, 320,


Grain:Freight-car loadings indexes. . 70, 146, 222, 330,


431, 525, 602, 681, 813, 923, 1013, 1129Great Britain. (See United Kingdom.)Greece:


441, 535, 613, 693, 825, 935, 1026, 1142Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,


447, 541, 619, 700, 831, 941, 1031, 1147Group banks:

Number, deposits, branches, by States andgeographic divisions, Dec. 31, 1938 480

Guaranteed obligations of the U. S. (See Treas-ury finance: Guaranteed obligations.)

Hay crop reports 72, 682, 814, 924, 1014, 1130Holden, St. George, reappointed Deputy Chair-

man, Federal Reserve Bank of San Francisco 7Home mortgage and housing agencies:

Assets and liabilities 60, 136, 212, 320,420, 514, 591, 670, 802, 912, 1002, 1118

Summary of operations, 1938 365-369Home Owners' Loan Corporation:


Guaranteed obligations outstanding 58134, 210, 318, 418, 512, 589, 668, 800,

910, 1000, 1116Mortgage loans 61, 137, 213, 321,




Page

Hong Kong:Foreign exchange rates 84, 160, 236, 346,

447, 541, 619, 700, 831, 941, 1031, 1147Gold movements to and from U. S. 46,

122, 198, 306, 406, 500, 577, 656, 788,898, 988, 1104

Housefurnishing goods:Wholesale price indexes 71, 147, 223, 331,

431, 525, 602, 681, 813, 923, 1013, 1129Hungary:


Money rates 81, 157, 233, 343,445, 538, 616, 696, 828, 938, 1028, 1144


441, 535, 613, 693, 825, 935, 1026, 1142Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 683, 818, 928, 1018, 1134Imports. (See Foreign trade.)Income:

International income position of U. S. 645Payments to individuals:

Charts 168, 455Discussion of 167

Tax receipts. (See Treasury finance: Re-ceipts.)

Index numbers:Cost of living 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Department store sales and stocks. .70, 146, 222,

330, 430, 524, 680, 812, 922, 1012, 1128Factory employment:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125

Factory payrolls 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125

Freight-car loadings 70, 146, 222, 330,430, 524, 601, 680, 812, 922, 1012, 1128

Industrial production:Adjusted 63, 139, 215, 323,

423, 517, 594, 673, 805, 915, 1005, 1121Unadjusted 64, 140, 216, 324,

424, 518, 595, 674, 806, 916, 1006, 1122Retail food prices 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Security prices 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Wholesale prices 85, 161, 237, 347,

448, 542, 620, 701, 832, 942, 1032, 1148India, British:


Gold imports and exports 76, 152, 228, 338,436, 530, 608, 688, 820, 930, 1020, 1136


Gold production 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

Reserve Bank of:Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1026, 1142Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74,150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134

PagoIndustrial advances of Federal Reserve banks:

All banks combined:End of month and Wednesday figures. 39,

115, 191, 299, 399, 493, 570, 649, 781,891, 981, 1097

Number and amounts 43, 119, 195, 303,403, 497, 574, 653, 785, 895, 985, 1101

Each bank, Wednesday figures. . .40, 116, 192,300, 400, 494, 571, 650, 782, 892, 982, 1098

Maturity distribution 39, 115, 191, 299,399, 493, 570, 649, 781, 891, 981, 1097

Rates 55, 131, 207, 315,415, 509, 586, 665, 797, 907, 997, 1113

Industrial loans. (See Commercial, industrialand agricultural loans; Industrial advances ofFederal Reserve banks.)

Industrial production. (See Production, Indus-trial.)

Installment loans:Term loan survey 562

Insurance agencies of United States Government:Assets and liabilities 60, 136, 212, 320,

420, 514, 591, 670, 802, 912, 1002, 1118Summary of operations, 1938 366

Insurance of deposits:Federal Reserve membership requirement

for State banks repealed 559Survey of number and amounts of deposits,

by size and classes, by types of banks, byStates, Sept. 21, 1938 101-104

Insured commercial banks:Assets and liabilities:

Dec. 31, 1938 381June 30, 1939 877

Deposits insured: survey, Sept. 21,1938 .101-104Number of:

Dec. 31, 1938 381June 30, 1939 877

Interest on deposits:Credit for obtaining new depositor not in

conflict with Regulation Q. (Ruling.) . . . 559Savings accounts:

Payment of interest after death of de-positor. (Ruling.) 851

Transfers to FHA mortgages. (Ruling.) 850Time certificates of deposits, Payment or re-

newal of those maturing on Sunday.(Ruling.) 850

Interest on public debt. (See Treasury finance:Public debt.)

Interest rates:Charged customers by banks . .56, 132, 208, 316,

416, 510, 587, 666, 798, 908Commercial loan rates:

1928-1939: 963-969Chart 963Cities included 965Comparable figures beginning 1928 966Computation of averages 965Definition of commercial loans . . 964Movements in rates 964Revised figures compared with for-

mer rates 966Schedule 965, 968Table of figures, 1928-1939 969

Sept. 1-15, 1938: 17-19Chart 17Geographical differences 18Level of customers' rates 18Method of reporting 17



PageInterest rates— -Continued.

Commercial loan rates—Continued.Sept. 1-15, 1938—Continued.

Variation in rates by size of loans 18Volume of loans covered by survey 18

Mar. 16-31 and June 1-15, 1939 725-726Monthly table 998

Government securities, Discussion of . .2, 3, 628Open market, in N. Y. C 56, 132, 208, 316,

416, 510, 587, Q66y 798, 908, 998, 1114Term loans survey 562Time deposits 55, 131, 207, 315,

415, 509, 586, 665, 797, 907, 997, 1113(See also Discount rates.)

Interlocking bank directorates. (See Bank di-rectorates, Interlocking.)

International capital movements:Discussion of 92-96

International capital position of United States 645International capital transactions of United

States:Statistics:

July-Sept., 1938 32-35Oct.-Nov., 1938 184-1871938 288-296Description of tables 284-287Monthly table 437, 531, 609, 689,

821, 931, 1021, 1137International income position of United States. . 645Investments:

All banks in U. S. on call dates:Sept. 28, 1938 24-28Dec. 31, 1938 382-386Mar. 29, 1939 563-567June 30, 1939 970-974Monthly table 47, 123, 199, 307, 407,

501, 578, 657, 789, 899, 989, 1105American investment abroad:

Chart 95Discussion of 95Tables 645

Foreign investment in U. S.:Chart 95Discussion of 96, 554, 1041-1043Table 645


Dec. 31, 1938 264Mar. 29, 1939 489June 30, 1939 728Monthly table . . 48, 124, 200, 308, 408,

502, 579, 658, 790, 900, 990, 1106Chart 245, 1051Discussion of 244-245, 631, 713-714Maturity distribution, Discussion of. . . 260Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures . 5 0 , 126, 202, 310, 410,


nesday figures 52, 128, 204, 312, 412,506, 583, 662, 794, 904, 994, 1110

(See also Loans and investments.)Iron and steel:


425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,

427, 521, 598, 677, 809, 919, 1009, 1125

Iron and Steel—Continued.Factory payrolls index 67, 143, 219, 327,

427, 521, 598, 677, 809, 919, 1009, 1125Prices, Discussion of 953Production index:

Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122

Wholesale price index 71, 147, 223, 331,431, 525, 602, 681, 813, 923, 1013, 1129

Italy:Bank of:

Discount rates 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336,434, 528, 606, 686, 818, 928, 1018, 1134


Money rates 81, 157, 233, 343,445, 538, 616, 696, 828, 938, 1028, 1144

Wholesale price indexes 85, 161, 237, 347448, 542, 620, 701, 832, 942, 1032, 1148

Japan:Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1026, 1142

Discount rates 82, 158, 234 344445, 539, 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336434, 528, 606, 686, 818, 928, 1018, 1134


Gold movements to and from U. S.. .46, 122 198306, 406, 500, 577, 656, 788, 898, 988, 1104

Money rates 81, 157, 233, 343445, 538, 616, 696, 828, 938, 1028, 1144

Wholesale price indexes 85, 161, 237, 347448, 542, 620, 701, 832, 942, 1032, 1148

Java:Bank of:

Condition 78, 154, 230, 340441, 535, 613, 693, 825, 935, 1027, 1143

Discount rates 82, 158, 234, 344445, 539, 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336434, 528, 606, 686, 818, 928, 1018, 1134

Johnson, L. E. reelected Class A Director, Fed-eral Reserve Bank of Richmond 6

Johnston, Oscar G., appointed Deputy Chairman,Federal Reserve Bank of St. Louis 7

Klages, R. E., appointed Deputy Chairman, Fed-eral Reserve Bank of Cleveland * 7

Krost, Martin 178, 265, 871Land Bank Commissioner loans. (See Federal

land banks and Land Bank Commissioner:Loans outstanding.)

Lassiter, Robert, redesignated Chairman andFederal Reserve Agent, Richmond 7

Latvia:Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1027, 1143

Discount rates 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Laws and legislation. (See Banking and finan-cial legislation.)

Lead production index:Adjusted 63, 139, 215, 323,

423, 517, 594, 673, 805, 915, 1005, 1121



PageLead production index—Continued.

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122

Leather and leather products:Factory employment index:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125


Prices, Discussion of 951Production index:

Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122


Liabilities. (See Condition statements.)Lichtenstein, Walter, reappointed Secretary of

Federal Advisory Council 172Liquidity of member banks:

Discussion of 262Lithuania:


441, 535, 613, 693, 825, 935, 1027, 1143Discount rates:

Changes in 539, 697Monthly table 82, 158, 234, 344,

445, 539, 617, 697, 829, 939,1029,1145Livestock:

Freight-car loadings indexes. . .70, 146, 222, 330,430, 524, 601, 680, 812, 922, 1012, 1128


Loans:Agricultural. (See Commercial, industrial

and agricultural loans.)Brokers'. (See Brokers and dealers in se-

curities: Loans to.)Commercial. (See Commercial, industrial

and agricultural loans.)Executive officers of member banks:

Public act extending period 559Industrial. (See Commercial, industrial and

agricultural loans; Industrial advances ofFederal Reserve banks.)

Member banks:Classification changes 259

Real estate. (See Real estate: Loans.)Security. (See Securities: Loans on.)Stock and bond collateral loans. (Ruling.) 362Term loans to commercial and industrial

concerns 560-562Total:

Reporting member banks:All banks, N. Y. C. and outside

N. Y. C, monthly and Wednes-day figures 50, 126, 202, 310,410, 504, 581, 660, 792, 902, 992, 1108


Loans and investments:All banks in U. S. on call dates:

Sept. 28, 1938 24-28Dec. 31, 1938 382-386Mar. 29, 1939 563-567June 30, 1939 970-974

PageLoans and investments—Continued.

All banks in U. S. on call dates—Continued.Monthly table 47, 123, 199, 307,

407, 501, 578, 657, 789, 899, 989, 1105Insured commercial banks:

Dec. 31, 1938 381June 30, 1939 877


Dec. 31, 1938 264Mar. 29,1939 488-489June 30,1939 727-728Monthly table 48, 124, 200, 308,

408, 502, 579, 658, 790, 900, 990, 1106Charts 9, 175, 244, 358, 556, 633, 712, 958

Discussion of 245-256, 354, 456, 631, 713-714Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures 50,126, 202, 310,410, 504, 581, 660, 792, 902, 992, 1108

By districts and for Chicago, Wed-nesday figures 52, 128, 204, 312,412, 50.6, 583, 662, 794, 904, 994, 1110

Mutual savings banks:Sept. 28, 1938 28Dec. 31, 1938 386Mar. 29, 1939 567June 30, 1939 974

National member banks:Sept. 28, 1938 26Dec. 31, 1938 384Mar. 29, 1939 565June 30, 1939 972

Private banks:Sept. 28, 1938 28Dec. 31, 1938 386Mar. 29, 1939 567June 30, 1939 974

State banks:Sept. 28, 1938 27Dec. 31, 1938 385Mar. 29, 1939 566June 30, 1939 973

Loeb, Howard A., reelected Vice President ofFederal Advisory Council 172

Longstreet, Victor M 963Lumber and lumber products:


425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,

427, 521, 598, 677, 809, 919, 1009, 1125Factory payrolls index 67, 143, 219,

327, 427, 521, 598, 677, 809, 919, 1009, 1125Wholesale price index 71, 147, 223,

331, 431, 525, 602, 681, 813, 923, 1013, 1129McAdoo, W. G.:

Letter on 25th anniversary of signing ofFederal Reserve Act 13

McCabe, Thomas B., designated Chairman andFederal Reserve Agent, Philadelphia 7

McCormick, Charles P., appointed Class C Di-rector, Federal Reserve Bank of Richmond . . 714

Machinery:Factory employment index:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327427, 521, 598, 677, 809, 919, 1009, 1125




PageMcKinney, B. A., Death of 356McKnight, J. R., elected Class A Director, Fed-

eral Reserve Bank of Minneapolis 7McLarin, W. S., Jr., appointed First Vice Presi-

dent, Federal Reserve Bank of Atlanta 956Maestre, Sidney, elected Class A Director, Fed-

eral Reserve Bank of St. Louis 7Malloy, Edwin, reelected Class B Director, Fed-

eral Reserve Bank of Richmond 7Manufactures:

Production index:Adjusted:

By industries, monthly figures. . 63, 139,215, 323, 423, 517, 594, 673, 805, 915,

1005, 1121Durable and nondurable, 1919-1938 21Total, monthly figures. . 62, 138, 214,

322, 422, 516, 593, 672, 804, 914,1004, 1120

Charts 357, 1050Unadjusted:

By industries, monthly figures. . 64, 140,216, 324, 424, 518, 595, 674, 806, 916,

1006, 1122Durable and nondurable, 1919-1938 21Total, yearly and monthly figures 62,

138, 214, 322, 422, 516, 593, 672, 804,914, 1004, 1120

Margin account statistics 54, 130, 206, 314,414, 508, 585, 664, 796, 906, 996, 1112

Margin requirements:Banks. Regulation U:

Stocks registered, Jan. 31, 1939, listpublished 173

Brokers and dealers in securities. Regula-tion T:

Capital contribution loans. (Amend-ment.) 722

Cash transactions. (Amendment.) . . . . 466Domestic broker permitted to borrow

from foreign broker. (Ruling.) . . . . 721Loans by one member of an exchange to

another. (Amendment.) 466Time extension after expiration of origi-

nal period (Ruling.) 253Transacting business through medium

of a member. (Ruling.) 961Maturities:

Bills held by Federal Reserve banks. (SeeBills: Federal Reserve bank holdings.)

Public debt. (See Treasury finance: Publicdebt.)

United States Government securities heldby Reserve banks. (See United StatesGovernment securities: Federal Reservebank holdings.)

Member bank reserves, Reserve bank credit, andrelated items:

Monthly table 38, 114, 190, 298,398, 492, 569, 648, 780, 890, 980, 1096

Member banks:Banking offices:

1933-1939 109, 477, 1065Bills discounted for. (See Bills: Discounted

by Federal Reserve banks.)Borrowings at Federal Reserve banks. (See

Borrowings.)Branches:

1933-1939 109, 477, 10651938 changes 110Jan.-Mar., 1939 changes 478

PageMember banks—Continued.

Branches—Continued.Jan.-Sept., 1939 changes 1066

Condition of. (See Condition statements.)Deposits. (See Deposits.)Earnings and expenses:

1938 and 1937 372-379Jan.-June, 1939 875Operating ratios, 1938 481-486

Loans and investments. (See Loans and in-vestments.)

National banks. (See National memberbanks.)

Number of:1933-1939 109, 477, 10651938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066Monthly table 47, 123, 199, 307,

407, 501, 578, 657, 789, 899, 989, 1105Reserves. (See Reserves.)State banks. (See State member banks.)Suspensions. (See Banks: Suspensions.)

Merchandise:Exports:

Chart of 552Discussion of 92, 96, 551-552,

949, 955, 1047-1048Exports and imports:

Monthly table 70, 146, 222, 330,430, 524, 601, 680, 812, 922, 1012, 1128

Freight-car loadings indexes . 70, 146, 222, 330,430, 524, 601, 680, 812, 922, 1012, 1128

Merritt, J. H.:Reappointed Class C Director, Federal Re-

serve Bank of Dallas 7Redesignated Chairman and Federal Re-

serve Agent, Dallas 7Metals and metal products:

Wholesale price indexes 71, 147, 223, 331,431, 525, 602, 681, 813, 923, 1013, 1129

Mexico:Bank of:

Discount rate 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336,434, 528, 606, 686, 818, 928, 1018, 1134



Gold production 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

Middleton, J. D., reelected Class B Director,Federal Reserve Bank of Dallas 7

Minerals:Production index:

Adjusted:By kinds, monthly figures 63, 139, 215,

323, 423, 517, 594, 673, 805, 915,1005, 1121

Total, monthly figures. 62, 138, 214,322, 422, 516, 593, 672, 804, 914,

1004, 1120Unadjusted:

By kinds, monthly figures 64, 140, 216,324, 424, 518, 595, 674, 806, 916,

1006, 1122Total, yearly and monthly figures 62,

138, 214, 322, 422, 516, 593, 672, 804,914, 1004, 1120



PageMonetary gold stock. (See Gold: Stock, Mone-

tary.)Monetary legislation. (See Banking and finan-

cial legislation.)"Monetary measures and objectives'". 363-364, 461Money in circulation:

Chart 355Discussion of 354Kinds of:

End of month figures . . 45, 121, 197, 305,405, 499, 576, 655, 787, 897, 987, 1103

Seasonal variations in:Description of methods 641-642Revised figures, 1919-1939 643-644Seasonal adjustment factors, 1919-1940 643

Total:End of month and Wednesday figures 38,

114, 190, 298, 398, 492, 569, 648, 780, 890,980, 1096

Money rates:Charged customers by banks 56, 132, 208, 316,

416, 510, 587, 666, 798, 908, 998, 1114Charts 175, 250, 463, 847, 1051Commercial loan rates:

1928-1939: 963-969Chart 963Cities included 965Comparable figures beginning 1928 966Computation of averages 965Definition of commercial loans . . . 964Movements in rates 964Revised figures compared with

former rates 966Schedule 965, 968Table of figures, 1928-1939 969

Sept. 1-15, 1938: 17-19Chart 17Geographical differences 18Level of customers' rates 18Method of reporting 17Variation in rates by size of loans 18Volume of loans covered by survey 18

Mar. 16-31 and June 1-15, 1939 . . 725-726Monthly table 998, 1114

Foreign countries 81, 157, 233, 343,445, 538, 616, 696, 828, 938, 1028, 1144

National summary 98, 175,250, 358, 463, 556, 633, 716, 958

Open market, in N. Y. C 56, 132, 208, 316,416, 510, 587, 666, 798, 908, 998, 1114

Mutual savings banks:Assets and liabilities:

Sept. 28, 1938 28Dec. 31, 1938 386Mar. 29, 1939 567June 30, 1939 974

Banking offices:1933-1939 109, 477, 1065

Branches:1933-1939 109, 477, 1065Dec. 31, 1938 4791938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066

Deposits on call dates 47, 123, 199, 307,407, 501, 578, 657, 789, 899, 989, 1105

Loans and investments on call dates 47, 123, 199,307, 407, 501, 578, 657, 789, 899, 989, 1105

Number of:1933-1939 109, 477, 1065

PageMutual savings banks—Continued,

Number of—Continued.1938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066Call dates:

Sept. 28, 1938 28Dec. 31, 1938 386Mar. 29, 1939 567June 30, 1939 974Monthly table 47, 123, 199, 307,

407, 501, 578, 657, 789, 899, 989, 1105Operating branches:

Dec. 31, 1938 479Mullaney, E. E., reelected Class A Director, Fed-

eral Reserve Bank of Kansas City 7Nardin, W. T., redesignated Chairman and Fed-

eral Reserve Agent, St. Louis 7National bank notes:

Circulation 45, 121, 197, 305,405, 499, 576, 655, 787, 897, 987, 1103

National income. (See Income.)National member banks:

Banking offices:1933-1939 109, 477, 1065

Branches:1933-1939 109, 477, 1065Dec. 31, 1938, by States 4791938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066

Condition on call dates:Dec. 31, 1938 264Mar. 29, 1939 488-489June 30, 1939 727-728

Deposits on call dates 47, 123, 199, 307,407, 501, 578, 657, 789, 899, 989, 1105

Earnings and expenses:1938 and 1937 374, 378Jan.-June, 1939 875

Group banks, Dec. 31, 1938 480Number of:

1933-1939 109, 477, 10651938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066Call dates:

Sept. 28, 1938 26Dec. 31, 1938 384Mar. 29, 1939 565June 30, 1939 972Monthly table 47, 123, 199, 307,


Dec. 31, 1938, by States 479Suspensions:

Monthly table 46, 122, 198, 306,406, 500, 577, 656, 788, 898, 988, 1104

Trust powers. (See Trust powers of na-tional banks.)

National summary of business conditions 8, 97, 174,249, 357, 462, 555, 632, 715, 846, 957, 1050

Neely, Frank H.:Reappointed Class C Director, Federal Re-

serve Bank of Atlanta 7Redesignated Chairman and Federal Re-

serve Agent, Atlanta 7Netherlands:

Bank of:Annual report, 1938-1939 1068-1076



PageNetherlands—Continued.

Bank of—Continued.Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1027, 1143Discount rates:

Change in 829Monthly table 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Banking and financial legislation:

Nov. 25, 1938. Authorization to pro-hibit export of gold 1067

Cost of living index 86, 162, 238, 348,449, 543, 621, 702 833, 943, 1033, 1149


Gold movements to and from U . S . . . 46, 122, 198,306, 406, 500, 577, 656, 788, 898, 988, 1104

Money rates 81, 157, 233, 343,445, 538, 616, 696, 828, 938, 1028, 1144

Retail food price index 86, 162, 238, 348,449, 543, 621, 702, 833, 943, 1033, 1149

Security prices 86, 162, 238, 348,449, 543, 621, 702, 833, 943, 1033, 1149

Wholesale price indexes . . 85, 161, 237, 347,448, 542, 620, 701, 832, 942, 1032, 1148

Neutrality Act of 1939:Credits to belligerants, regulations 961Financial transactions under 1054

New Zealand:Foreign exchange rates 84, 160, 236, 346,

447, 541, 619, 700, 831, 941, 1031, 1147Reserve Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1027, 1143

Discount rates:Change in 82Monthly table 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Newton. Oscar, Death of 172Nondurable goods:


425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,


427, 521, 598, 677, 809 919 1009 1125Prices, Discussion of 951Production index:

Adjusted:1919-1938 21Monthly table 139, 215, 323, 423,

517, 594, 673, 805, 915, 1005, 1121Discussion of 20Unadjusted:

1923-1938 21Monthly table 140, 216, 324, 424,

518, 674, 806, 916, 1006, 1122Nonferrous metals:


425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,


427, 521, 598, 677, 809, 919, 1009, 1125

PageNonferrous metals—Continued.

Prices, Discussion of v 953Production indexes:

Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122


Nonmember banks:Branches:

1933-1939 109, 477, 1065Dec. 31, 1938, by States 4791938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066

Deposits:Call dates 47, 123, 199, 307,

407, 501, 578, 657, 789, 899, 989, 1105Deposits of, held by Federal Reserve banks:

End of month and Wednesday figures . 38,114, 190, 298, 392, 492, 569, 648, 780,

890, 980, 1096Group banks, Dec. 31, 1938 480Insured:

Assets and liabilities:Dec. 31, 1938 381June 30, 1939 877

Banking offices:1933-1939 109, 477, 1065

Branches:1933-1939 109, 477,1938 changesJan.-Mar., 1939 changesJan.-Sept., 1939 changes

Number of:1933-1939 109, 477,Dec. 31, 19381938 changesJan.-Mar., 1939 changesJune 30, 1939Jan.-Sept., 1939 changes

Suspensions 46, 122, 198,406, 500, 577, 656, 788, 898, 988,

Loans and investments, call dates 47, 123,307, 407, 501, 578, 657, 789, 899, 989,

Number of, call dates 47, 123, 199,407, 501, 578, 657, 789, 899, 989,

Operating branches:Dec. 31, 1938, by States

Uninsured:Banking offices:

1933-1939 109, 477,Branches:

1933-1939 109, 477,1938 changesJan.-Mar., 1939 changesJan.-Sept., 1939 changes

Number of:1933-1939 109, 477,1938 changesJan.-Mar., 1939 changesJan.-Sept., 1939 changes

Suspensions 46, 122, 198,406, 500, 577, 656, 788, 898, 988,

Norway:Bank of:

Condition 78, 154, 230,441, 535, 613, 693, 825, 935, 1027,

10651104781066

10653811104788771066306,1104199,1105307,1105

479

1065

10651104781066

1065.1104781066306,1104

340,1143



Page

Norway—Continued.Bank of—Continued.

Discount rates:Change in 939Monthly table 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336,434, 528, 606, 686, 818, 928, 1018, 1134

Foreign exchange rates . 84, 160, 236, 346,447, 541, 619, 700, 831, 941, 1031, 1147

Noyes, N. H., reelected Class B. Director, Fed-eral Reserve Bank of Chicago 7

Number of banks. (See Banks: Number of)Oats crop reports 72, 682, 814, 924, 1014, 1130Obligations fully guaranteed by the U. S. (See

Treasury finance: Guaranteed obligations.)O'Connell,'j. E., reelected Class B Director, Fed-

eral Reserve Bank of Minneapolis 7Odlin, Reno, elected Class A Director, Federal

Reserve Bank of San Francisco 7Objectives, Monetary measures and . 363-364, 461Officers and employees:

Member banks:1938 378-379

875(See Federal Open

630, 710, 839, 1049

489728

Jan.-June, 1939Open Market Committee.

Market Committee.)Open market operations:

Discussion ofOpen market paper:


Mar. 29, 1939June 30, 1939Monthly table 308, 408, 502, 579, 658,

790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures . 50, 126, 202, 310, 410.

504, 581, 660, 792, 902. 992, 1108By districts and for Chicago,

Wednesday figures 52, 128, 204, 312412, 506, 583, 662, 794, 904, 994, 1110

Operating ratios of member banks, 1938:By size groups and geographic divisions

481-486Ore:

Freight-car loadings indexes 70, 146, 222, 330,430, 524, 601, 680, 812, 922, 1012, 1128

Paper and printing:Factory employment index:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327427, 521, 598, 677, 809. 919, 1009, 1125

Factory payrolls index . 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125


Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122


Paper currency:Circulation 45, 121, 197, 305,

405, 499, 576, 655, 787, 897, 987, 1103

PagePaper currency—Continued.

Shipments and receipts 45, 121, 197, 305,405, 499, 576, 655, 787, 897, 987, 1103

Parker, Robert S., appointed President of Fed-eral Reserve Bank of Atlanta 173

Partnership loans under Section 11 (m) of Fed-eral Reserve Act. (Ruling.) 362

Payrolls, Factory:Charts 462Indexes:

By industries, monthly figures 67,143, 219, 327, 427, 521, 598, 677, 809, 919,

1009, 1125Total, yearly and monthly figures . 6 2 ,

138, '214, 322, 422, 516, 593, 672, 804, 914,1004, 1120

National summary 9, 98, 174, 249, 463, 715Personal loans:

Amounts received in connection with per-sonal loans as deposits. (Ruling.) 637

Peru:Central Reserve Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1027, 1143

Discount rate 82, 158, 234, 344,445, 5391 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336,434, 528, 606, 686, 818, 928, 1018, 1134

Gold movements to and from U. S. 46, 122,198, 306, 406, 500, 577, 656, 788, 898, 988, 1104

Petroleum and products: ,Factory employment index:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125



423, 517, 594, 673, 805, 915, 1005, 1121Unadjusted 64, 140, 216, 324,


431, 525, 602, 681, 813, 923, 1013, 1129Philippine Islands:

Gold movements to and from U. S. . 46, 122,198, 306, 406, 500, 577, 656, 788, 898, 988, 1104

Phillips, L. E., reelected Class B Director, Fed-eral Reserve Bank of Kansas City 7

Poland:Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1027, 1143

Discount rate 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336,434, 528, 606, 686, 818, 928, 1018, 1134

Foreign exchange rates . 84, 160, 236, 346,447, 541, 619, 700, 831, 941, 1031, 1147

Porter, J. F., appointed Deputy Chairman, Fed-eral Reserve Bank of Atlanta 7

Portugal:Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1027, 1143

Discount rate 82, 158, 234, 344,445, 539, 617, 697, 829, 939, 1029, 1145

Gold reserves 74, 150, 226, 336,434, 528, 606, 686, 818, 928, 1018, 1134



PagePortugal—Continued.


Postal savings deposits:Interest rate on, paid by member banks. . 55, 131,

207, 315, 415, 509, 586, 665, 797, 907, 997, 1113Member bank holdings:

All banks on call dates:Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthly table 49, 125, 201, 309,

409, 503, 580, 659, 791, 901, 991, 1107Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures 311,411, 505, 582, 661, 793, 903, 993, 1109

By districts and for Chicago,Wednesday figures 313,413, 507, 584, 663, 795, 905, 995, 1111

Postal savings system 61, 137, 213, 321,421, 515, 592, 671, 803, 913, 1003, 1119

Potato crop reports 72, 682, 814, 924, 1014President of United States:

Letter on 25th anniversary of signing ofFederal Reserve Act 13

Proclamations on newly-mined silver. 105, 723Regulations concerning credits to belliger-

ents 961Veto message on interlocking bank directo-

rates 719Prices:

Agricultural :Discussion of 459, 843

Retail food:Discussion of 844, 950Index, principal countries 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Stabilization of:

Board of Governors statement on 255-259,461

Wholesale commodity:Charts 97, 358, 460,

556, 716, 843, 847, 950, 951, 958, 1051Discussion of 170, 459-461, 842-844, 949-955Indexes by groups:

Principal countries . 85, 161, 237, 347,448, 542, 620, 701, 832, 942, 1032, 1148

United States 71, 147, 223, 331, 431,525, 602, 681, 813, 923, 1013, 1129

National summary 9, 175, 250,358, 463, 556, 633, 716, 847, 957, 1051

Principal assets and liabilities of Federal Re-serve banks:

Monthly table 39, 115, 191, 299,399, 493, 570, 649, 781, 891, 981, 1097

Private banks:Assets and liabilities:

Sept. 28, 1938 28Dec. 31, 1938 386Mar. 29, 1939 567June 30, 1939 974

Banking offices:1933-1939 109, 477, 1065

Branches:1933-1939 109, 477, 1065Dec. 31, 1938 4791938 changes 110

PagePrivate banks—Continued.

Branches—Continued.Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066

Number of:1933-1939 109, 477, 1065Sept. 28, 1938 28Dec. 31, 1938 3861938 changes . . 110Mar. 29, 1939 567Jan.-Mar., 1939 changes 478June 30, 1939 974Jan.-Sept., 1939 changes 1066

Operating branches, Dec. 31, 1938 479"Problems of Banking and Bank Supervision". . 97Production, employment and trade:

Monthly table 62, 138, 214, 322,422, 516, 593, 672, 804, 914, 1004, 1120

Production, Industrial:Charts 8, 20, 97, 169, 174, 249,

456, 462, 555, 632, 715, 844, 846, 1046Discussion of 168, 456-457, 844-845Indexes:

Adjusted:By industries, monthly figures 63,

139, 215, 323, 423, 517, 594, 673, 805,915, 1005, 1121

Total, monthly figures 62138, 214, 322, 422, 516, 593, 672, 804,

914, 1004, 1120National summary 8, 97, 174, 249,

357, 462, 555, 632, 715, 846, 957, 1050Unadjusted:

By industries, monthly figures 64,140, 216, 324, 424, 518, 595, 674, 806,

916, 1006, 1122Total, yearly and monthly figures. . 62138, 214, 322, 422, 516, 593, 672, 804,

914, 1004, 1120Production, Manufacturing. (See Manufac-

tures: Production.)Production credit associations:

Loans outstanding 61, 137, 213, 321,421, 515, 592, 671, 803, 913, 1003, 1119

Profit and loss:Member banks:

1938 347-379Jan.-June, 1939 875

Public debt, U. S. Government. (See Treasuryfinance: Public debt.)

Public Works Administration:Assets and liabilities:

Combined with Reconstruction FinanceCorporation figures 60, 136, 212,320, 420, 514, 591, 670, 802, 912,1002,1118

Summary of operations, 1938 366-367Railroads:

Earnings and expenses 170Real estate:

Loans on, by member banks:All banks on call dates:


408, 502, 579, 658, 790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednesdayfigures 50, 126, 202, 310,410, 504, 581, 660, 792, 902, 992, 1108



PageReal estate—Continued.

Loans on, by member banks—Continued.Reporting banks—Continued.


Member bank holdings:Dec. 31, 1938 264Mar. 29, 1939 489June 30, 1939 728

Term loans secured by real estate 561Receipts, U. S. Treasury. (See Treasury finance:

Receipts.)Reconstruction Finance Corporation:

Act continuing functions 253-254Assets and liabilities:

Combined with Public Works Adminis-tration figures 60, 136, 212, 320,

420, 514, 591, 670, 802, 912, 1002, 1118Guaranteed obligations outstanding . 58, 134,

210, 318, 418, 512, 589, 668, 800, 910, 1000, 1116Loans and investments 60, 136, 212, 320,

420, 514, 591, 670, 802, 912, 1002, 1118Mortgage Company operations, 1938 . . 365-368Summary of operations, 1938 365-371

Redemption fund; Federal Reserve notes. (SeeFederal Reserve notes: Redemption fund.)

Regulations of Board of Governors:Regulation D. Reserve requirements:

Funds for retiring personal loans as de-posits. (Ruling.) 637

Regulation F. Trust powers of nationalbanks:

Amendments 1054Ruling : 12

Regulation G. Rediscount of notes securedby adjusted service certificates:

Regulation repealed 361Regulation H. Membership of State banks:

Revised 1054-1064Regulation J. Check clearing and collection:

Revised 719-721Regulation L. Interlocking directorates:

Amendments 719Regulation O. Executive officers of member

banks.Amendment. Change in definition of

"Executive officer" 636Regulation Q. Interest on deposits:

Rulings 559, 850, 851Regulation T. Margin requirements for

brokers:Amendments 466, 722Rulings 253,721,961

Reserve bank credit. (See Credit, Bank.)Reserve city member banks:

Condition on call dates:Dec. 31, 1938 264Mar. 29, 1939 488-489June 30, 1939 727-728Monthly table 48, 124, 200, 308,

408, 502, 579, 658, 790, 900, 990, 1106Deposits:

Monthly figures 44, 120, 196, 304,404, 498, 575, 654, 786, 896, 986, 1102

Reserves:Monthly and weekly figures . .44, 120, 196,

304, 404, 498, 575, 654, 786, 896, 986, 1102Reserve position of member banks:

Monthly table 44, 120, 196, 304,404, 498, 575, 654, 786, 896, 986, 1102

Page

Reserve requirements:Member banks:

Monthly table 55, 131, 207, 315,415, 509, 586, 665, 797, 907, 997, 1113

Personal loans:Funds for retiring personal loans as de-

posits for reserve purposes. (Ruling.) 637Reserves:

Federal Reserve banks:All banks combined, end of month and


Each bank, Wednesday figures 40, 116,192,300, 400, 494, 571, 650, 782, 892, 982, 1098

Member banks:Account in Federal Reserve banks:

All banks combined, end of monthand Wednesday figures 39,115, 191, 299, 399, 493, 570, 649, 781,

891, 981, 1097Each F. R. bank, Wednesday figures. 40,

116, 192, 300, 400, 494, 571, 650, 782,892, 982, 1098

Charts 10, 99, 176, 251, 359, 464,557, 634, 711, 716, 717, 848, 959, 1052

Discussion of 91, 246, 456, 630, 709-711Excess:

Charts 98, 358Classes of banks 44, 120, 196, 304,

404, 498, 575, 654, 786, 896, 986, 1102Discussion of 91, 456, 630, 709End of month and Wednesday fig-

ures 38, 114, 190, 298,398, 492, 569, 648, 780, 890, 980, 1096

Total:All banks:

Call dates:Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthly table 49, 125,

201, 309, 409, 503, 580, 659,791, 901, 991, 1107

End of month and Wednesdayfigures . . 38, 114, 190, 298, 398,492, 569, 648, 780, 890, 980, 1096

Classes of banks . . . 44, 120, 196, 304,404, 498, 575, 654, 786, 896, 986, 1102

Ratio to liabilities . . 39, 115, 191, 299,399, 493, 570, 649, 781, 891, 981, 1097

Reporting banks:All banks, N. Y. C. and outside

N. Y. C, monthly andWednesday figures . 50, 126,202, 311, 411, 505, 582, 661, 793,

903, 993, 1109By districts and for Chicago,

Wednesday figures, . 52, 128,204, 313, 413, 507, 584, 663, 795,

905, 995, 1111Retail trade:

Discussion of 170(See also Department store sales and stocks.)

Retail food prices. (See Prices: Retail food.)Review of the month 1,91, 167, 243,

353, 455, 549, 627, 709, 839, 949, 1039Rhodesia:

Gold production 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135



PageRubber and rubber products:


425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,


427, 521, 598, 677, 809, 919, 1009, 1125Prices, Discussion of 951Production indexes:

Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122

Wholesale price indexes 71, 147, 223, 331,431, 525, 602, 681, 813, 923, 1013, 1129

Rulings of Board of Governors:(For rulings of Board see under subject

matter, i.e., Margin requirements.)Rumania:



441, 535, 613, 693, 825, 935, 1027, 1143Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Ruml, Beardsley:

Reappointed Class C Director, Federal Re-serve Bank of New York 7

Reappointed Deputy Chairman, Federal Re-serve Bank of New York 7

Rural Electrification Administration:Loans outstanding, Dec. 31, 1938 . .365-366, 371

Salaries:Federal Reserve banks:

Jan.-June, 1939 640Member banks:

1938 374-379Jan.-June, 1939 875

Salvador. (See El Salvador.)Savings accounts:

Payment of interest on savings account afterdeath of depositor. (Ruling.) 851

Transfers to FHA mortgages. (Ruling.) . . 850Savings deposits:

Interest rates on 55, 131, 207, 315,415, 509, 586, 665, 797, 907, 997, 1113

Payment of interest on. (See Interest ondeposits.)

Seale, Ford, elected Class A Director, FederalReserve Bank of Dallas 7

Seasonal variations in money in circulation. . 641-644Securities:

Loans on, by member banks:All banks on call dates:

Mar. 29, 1939 489June 30, 1939 728Monthly table 48, 124, 200, 308,

408, 502, 579, 658, 790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and outside N.Y. C, monthly and Wednesdayfigures 50, 126, 202, 310, 410,


Wednesday figures 52, 128,204, 312, 412, 506, 583, 662,

794, 904, 994, 1110

PageSecurities—Continued.

Market, Discussion of 171, 243, 355, 628-630New issues. (See Capital issues.)Prices:

National summary 358Principal countries 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149United States 57, 133, 209, 317,

417, 511, 588, 667, 799, 909, 999, 1115Purchased by foreigners:

July-Sept., 1938 34Oct.-Nov., 1938 1861938 292-293Description of tables 284-287Discussion of 96Monthly table 438, 532, 610,

690, 822, 932, 1022, 1138United States Government. (See United

States Government securities.)Shipments and receipts of United States paper

currency. (See Paper currency: Shipmentsand receipts.)

Short-term foreign assets of banks in UnitedStates:

July-Sept., 1938 35Oct.-Nov., 1938 1871938 296Description of tables 284-287Monthly table 439, 533, 611, 691,

823, 933, 1023, 1139Short-term foreign liabilities of banks in United

States:July-Sept., 1938 35Oct.-Nov., 1938 1871938 295Description of tables 284-287Monthly table 439, 533, 611, 691,

S i l v e r . 823,933,1023,1139Circulation 45, 121, 197, 305,

405, 499, 576, 655, 787, 897, 987, 1103Newly mined domestic silver:

Act providing for coinage of 638Presidential proclamations 105, 723Regulations governing. . . .105-108, 638, 724


423, 517, 594, 673, 805, 915, 1005, 1121Unadjusted 64, 140, 216, 324,

424, 518, 595, 674, 806, 916, 1006, 1122Silver certificates:

Circulation 45, 121, 197, 305,405, 499, 576, 655, 787, 897, 987, 1103

Smith, Walter W., reelected President of FederalAdvisory Council 172

Social security:Act made applicable to member banks 723Receipts, withdrawals and benefit payments 59,

135, 211, 319, 419, 513, 590, 669, 801, 911,1001, 1117

84, 160, 236, 346,South Africa:

Foreign exchange rates .447, 541, 619, 700, 831, 941, 1031, 1147

Gold production 75, 151, 227, 337,435, 529, 607, 687, 819, 929, 1019, 1135

Reserve Bank:Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1027, 1143Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134



PageSpain:

Bank of:Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,


447, 541, 619, 700, 831, 941, 1031, 1147Gold movements to and from U. S. . . . 46, 122,

198, 306, 406, 500, 577, 656, 788, 898, 988, 1104Stabilization fund:

Act extending powers relating to 638Stabilization of prices:

Board of Governors statement on 255-259, 461Stanley, J. R., elected Class B Director, Federal

Reserve Bank of St. Louis 7State banks:

Assets and liabilities:Sept. 28, 1938 27Dec. 31, 1938 385Mar. 29, 1939 566June 30, 1939 . 973

Federal Reserve membership requirementfor State insured banks repealed 559

Number of:Sept. 28, 1938 27Dec. 31, 1938 385Mar. 29, 1939 566June 30, 1939 973

State laws:Branch banking 851-870

State member banks:Banking offices:

1933-1939 109, 477, 1065Branches:

1933-1939 109, 477, 1065Dec. 31, 1938, by States 4791938 changes 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066

Condition on call dates:Dec. 31, 1938 264Mar. 29, 1938 488-489June 30, 1939 727-728

Deposits, call dates 47, 123, 199, 307,407, 501, 578, 657, 789, 899, 989, 1105

Earnings and expenses:1938 374, 378-379Jan.-June, 1939 875

Group banks, Dec. 31, 1938 480Number of:

1933-1939 109, 477, 10651938 changes , 110Jan.-Mar., 1939 changes 478Jan.-Sept., 1939 changes 1066Monthlv table 47, 123, 199, 307,


Dec. 31, 1938, by States 479Regulation H, revised 1054-1064Suspensions 46, 122, 198, 306,

406, 500, 577, 656, 788, 898, 988, 1104States and political subdivisions:

Obligations of, owned by member banks:Dec. 31, 1938 264Mar. 29, 1939 489June 30, 1939 728

Public fund deposits:Member bank holdings:

All banks on call dates:Dec. 31, 1938 264

PageStates and political subdivisions—Continued.

Public fund deposits—Continued.Member bank holdings—Continued.

All banks on call dates—Continued.Mar. 29, 1939 488June 30, 1939 727Monthly table 49, 125,

201, 309, 409, 503, 580, 659, 791,901, 991, 1107

Reporting banks:All banks, N. Y. C, and out-

side N. Y. C, monthly andWednesday figures 311, 411,505, 582, 661, 793, 903, 993, 1109

By districts and for Chicago,Wednesday figures 313, 413,507, 584, 663, 795, 905, 995, 1111

Steagall, Henry B.:Address at 25th anniversary of signing of

Federal Reserve Act 14Steel. (See Iron and steel.)Stock exchange:

Customers' debit balances, etc., of firms car-rying margin accounts. . 54, 130, 206, 314,

414, 508, 585, 664, 796, 906, 996, 1112Discount rates on loans 56, 132, 208, 316,

416, 510, 587, 666, 798, 908, 998, 1114Stocks registered, Jan. 31, 1939 173Volume of trading on N.Y.S.E 57, 133, 209,

317, 417, 511, 588, 667, 799, 909, 999, 1115Stocks:

Collateral loans on. (Ruling.) 362Member bank holdings:

Dec. 31, 1938 264Mar. 29, 1939 489June 30, 1939 728

New issues. (See Capital issues.)Prices:

Charts 629, 841Discussion of 629, 840Principal countries 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149United States 57, 133, 209, 317,

417, 511, 588, 667, 799, 909, 999, 1115Stone, James C, appointed Class C Director,

Federal Reserve Bank of Cleveland 7Stone and clay products:

Factory employment indexes:Adjusted 65, 141, 217, 325,

425, 519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327,

427, 521, 598, 677, 809, 919, 1009, 1125Factory payrolls indexes 67, 143, 219, 327,

427, 521, 598, 677, 809, 919, 1009, 1125Straits Settlements:


Stroud, E. B., appointed First Vice President,Federal Reserve Bank of Dallas 554

Summary of financial and business statistics . 11,100, 177, 252, 360, 465, 558, 635, 718,

849, 960, 1053Supervision of banks. (See Bank supervision.)Surplus :


Suspensions, Bank. (See Banks: Suspensions.)f



PageSweden:


441, 535, 613, 693, 825, 935, 1027, 1143Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,


447, 541, 619, 700, 831, 941, 1031, 1147Gold movements to and from U. S.. .46, 122, 198,

306, 406, 500, 577, 656, 788, 898, 988, 1104Money rates 81, 157, 233, 343,

445, 538, 616, 696, 828, 938, 1028, 1144Switzerland:

Cost of living index 86, 162, 238, 348,449, 543, 621, 702, 833, 943, 1033, 1149


Gold imports and exports 76, 152, 228, 338,436, 530, 608, 688, 820, 930, 1020, 1136


Money rates 81, 157, 233, 343,445, 538, 616, 696, 838, 938, 1028, 1144


Swiss National Bank:Annual report, 1938 387-391Condition 78, 154, 230, 340,

441, 535, 613, 693, 825, 935, 1027, 1143Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,


448, 542, 620, 701, 832, 942, 1032, 1148Tax receipts, U. S. Treasury. (See Treasury

finance: Receipts.)Taxation of banks:

Social Security Act made applicable to mem-ber banks 723

Taylor, Jay, appointed Deputy Chairman, Fed-eral Reserve Bank of Dallas 7

Teagle, W. C, reelected Class B Director, Fed-eral Reserve Bank of New York 7

Tennessee Valley Authority:Assets and liabilities 60, 136, 212, 320,

420, 514, 591, 670, 802, 912, 1002, 1118Government's proprietary share in 366

Terborgh, George 731Term loans:

Survey of term loans to commercial and in-dustrial concerns 560-562

Textiles:Factory employment index:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125



Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140 ,216, 324,424, 518, 595, 674, 806, 916, 1006, 1122


Page

Thomas, J. J.:Appointed Deputy Chairman, Federal Re-

serve Bank of Kansas City 7Reappointed Class C Director, Federal Re-

serve Bank of Kansas City 7Thompson, Otis A., reelected Class A Director,

Federal Reserve Bank of New York 6Tobacco:

Crop reports 72, 682, 814, 924, 1014, 1130Manufactures:

Factory employment index:Adjusted 65, 141, 217, 325, 425,

519, 596, 675, 807, 917, 1007, 1123Unadjusted 67, 143, 219, 327, 427,

521, 598, 677, 809, 919, 1009, 1125Factory payrolls index . 6 7 , 143, 219, 327,

427, 521, 598, 677, 809, 919, 1009, 1125Production index:

Adjusted 63, 139, 215, 323, 423,517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324, 424,518, 595, 674, 806, 916, 1006, 1122

Transportation equipment:Factory employment index:

Adjusted 65, 141, 217, 325,425, 519, 596, 675, 807, 917, 1007, 1123

Unadjusted 67, 143, 219, 327,427, 521, 598, 677, 809, 919, 1009, 1125


Production indexes:Adjusted 63, 139, 215, 323,

423, 517, 594, 673, 805, 915, 1005, 1121Unadjusted 64, 140, 216, 324,

424, 518, 595, 674, 806, 916, 1006, 1122Treasury cash and deposits with Federal Re-

serve banks. (See United States Govern-ment deposits: Federal Reserve banks.)

Treasury currency outstanding:End of month and Wednesday figures . 3 8 , 114,

190, 298, 398, 492, 569,648, 780, 890, 980, 1096

End of month figures 45, 121, 197, 305,405, 499, 576, 655, 787, 897, 987, 1103

Treasury finance:Deficit 59, 135, 211, 319,

419, 513, 590, 669, 801, 911, 1001, 1117Discussion of 1-6, 243, 627-628, 710, 712Expenditures:

Discussion of 4-6, 627-628Monthly table 59, 135, 211, 319, 419,

513, 590, 669, 801, 911, 1001, 1117General fund balance . . .59, 135, 211, 319, 419,

513, 590, 669, 801, 911, 1001, 1117Guaranteed obligations 58, 134, 210, 318,

418, 512, 589, 668, 800, 910, 1000, 1116Public debt:

Changes in 2, 627Gross debt. .58, 134, 210, 318, 418, 512, 589,

668, 800, 910, 1000, 1116Interest bearing:

Chart 2Monthly table. . .58, 134, 210, 318, 418,

512, 589, 668, 800, 910, 1000, 1116Interest on:

Discussion of 2,3Monthly table. . .59, 135, 211, 319, 419,

513, 590, 669, 801, 911, 1001, 1117Maturities:

Discussion of 2, 628



PageTreasury finance—Continued.

Public debt—Continued.Maturities—Continued.

Monthly table. . .58, 134, 210, 318, 418,512, 589, 668, 800, 910, 1000, 1116

Noninterest bearing 58, 134, 210, 318,418, 512, 589, 668, 800, 910, 1000, 1116

Receipts:Discussion of 4-5, 627Monthly table 59, 135, 211, 319, 419,

513, 590, 669, 801, 911, 1001, 1117Treasury notes of 1890:

Circulation 45, 121, 197, 305, 405, 499, 576,655, 787, 897, 987, 1103

Trust Indenture Act of 1939, Note on 851Trust powers of national banks:

Investment of funds:Amendments to Regulation F 1054Deposit of funds in own savings de-

partment. (Ruling.) 12Turkey:

Central Bank of:Condition . .78, 154, 230, 340, 441, 535, 613,

693, 825, 935, 1027, 1143Discount rate . .82, 158, 234, 344, 445, 539,

617, 697, 829, 939, 1029, 1145Gold reserves . .74, 150, 226, 336, 434, 528,

606, 686, 818, 928, 1018, 1134Foreign exchange rates 84, 160, 236, 346, 447,

541, 619, 700, 831, 941, 1031, 1147Union of Soviet Socialist Republics:

Bank of:Discount rate 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold production 75, 151, 227, 337,

435, 529, 607, 687, 819, 929, 1019, 1135United Kingdom:

Bank of England:Condition 77, 153, 229, 339,

440, 534, 612, 692, 824, 934, 1024, 1140Discount ra te :

Changes in 829, 939, 1029Monthly table . 8 2 , 158, 234, 344, 445,

539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Gold transferred to British Fund . . . 91-92

Banking and financial legislation:Feb. 28, 1939. Currency and Bank

Notes Act, 1939 271Commercial banks 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Cost of living index 86, 162, 238, 348,

449, 543, 621, 702, 833, 943, 1033, 1149Economic controls:

Exports and imports 1044Internal controls 1044-1045

Economic situation, Discussion of 553-554Exchange Equalization Account:

Bank of England transfer of gold to. 91-92Borrowing power limit removed . 1041Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Foreign exchange rates:

Discussion of 842, 1040Monthly table 84, 160, 236, 346,

447, 541, 619, 700, 831, 941, 1031, 1147Foreign exchange regulations 1039-1041Gold imports and exports . . . 76, 152, 228, 338,

436, 530, 608, 688, 820, 930, 1019, 1135

PageUnited Kingdom—Continued.

Gold movements to and from U. S 46, 122,198, 306, 406, 500, 577,656, 788, 898, 988, 1104

Money rates 81, 157, 233, 343,445, 538, 616, 696, 828, 938, 1028, 1144


Security prices 86, 162, 238, 348,449, 543, 621, 702, 833, 943, 1033, 1149

Tax measures, Discussion of 1045Treasury expenditures, Discussion of 1045Wholesale price indexes . . . 85, 161, 237, 347,

448, 542, 620, 701, 832, 942, 1032, 1148United States Government credit agencies. (See

Governmental corporations and credit agen-cies.)

United States Government debt. (See Treas-ury finance: Public debt.)

United States Government deposits:Federal Reserve banks:

All banks combined, end of month andWednesday figures . . . 38, 114, 190, 298,

398, 492, 569, 648, 780, 890, 980, 1096Each bank, Wednesday figures . 4 0 , 116,

192, 300, 400, 494, 571,650, 782, 892, 982, 1098


Dec. 31, 1938 264Mar. 29, 1939 488June 30, 1939 727Monthly table . 49, 125, 201, 309, 409,

503, 580, 659, 791, 901, 991, 1107Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures. 51, 127, 203. 311, 411,


nesday figures 53, 129, 205, 313, 413,507, 584, 663, 795, 905, 995, 1111

United States Government insurance agencies.(See Insurance agencies of United StatesGovernment.)

United States Government securities:Bonds:



658, 790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and out-side N. Y. C, monthly andWednesday figures . . . . 310, 410,

504, 581, 660, 792,902, 992, 1108

By districts and for Chicago,Wednesday figures 312, 412,

506, 583, 662, 794,904, 994, 1110

Prices . . 57, 133, 209, 317, 417, 511, 588,667, 799, 909, 999, 1115

Yields. .. .56, 132, 208, 316, 416, 510, 587,666, 798, 908, 998, 1114

Collateral security for Federal Reserve notesuntil June 30, '1941. 637



PageUnited States Government securities—Continued.

Federal Reserve bank holdings:All banks combined, end of month and


Discussion of 630, 710, 839, 1049Each bank, Wednesday figures. . . .40, 116,

192, 300, 400, 494, 571, 650,782, 892, 982, 1098

Maturity distribution. . .39, 115, 191, 299,399, 493, 570, 649, 781, 891, 981, 1097

Guaranteed obligations:Member bank holdings:

All banks on call dates:Dec. 31, 1938 264Mar. 29,1939 489June 30,1939 728Monthly table 48, 124, 200,

308, 408, 502, 579, 658,790, 900, 990, 1106

Reporting banks:All banks, N. Y. C. and out-

side N. Y. C, monthly andWednesday figures. . . .310, 410,

504, 581, 660, 792,902, 992, 1108

By districts and for Chicago,Wednesday figures . . . 312, 412,

506, 583, 662, 794,904, 994, 1110

Outstanding, by agencies. . 58, 134, 210, 318,418, 512, 589, 668, 800, 910, 1000, 1116

Holdings by types of investors 3-4Interest rates on 2, 3Issued directly to Government agencies and

trust funds 3Market, Discussion of. . .171, 243, 628, 847, 1049Member bank holdings:

All banks on call dates:Dec. 31, 1938 264Mar. 29, 1939 489June 30, 1939 728Maturity distribution 489, 728Monthly table 48, 124, 200, 308, 408,

502, 579, 658, 790, 900, 990, 1106Discussion of 354, 631, 839Reporting banks:

All banks, N. Y. C. and outsideN. Y. C, monthly and Wednes-day figures 50, 126, 202, 310, 410,


Wednesday figures 52, 128, 204,312, 412, 506, 583, 662,

794, 904, 994, 1110Treasury bills:

Discount rates on 56, 132, 208, 316,416, 510, 587, 666, 798, 908, 998, 1114

Federal Open Market Committee state-ment on reduction of holdings 630

Federal Reserve bank holdings:Discussion of 630, 710


Mar. 29, 1939 489June 30, 1939 728Monthly table 308, 408, 502,

579, 658, 790, 900, 990, 1106

PageUnited States Government securities—Continued.

Treasury bills—Continued.Member bank holdings—Continued.

Reporting banks:All banks, N. Y. C. and out-

side N. Y. C, monthly andWednesday figures . . '310, 410,

504, 581, 660, 792,902, 992,1108

By districts and for Chicago,Wednesdav figures . 312 , 412,

506, 583, 662, 794,904, 994, 1110

Treasury notes:Member bank holdings:

All banks on call dates:Mar. 29, 1939 489June 30, 1939 728Monthly table 308, 408, 502,

579, 658, 790, 900, 990, 1106Reporting banks:

All banks, N. Y. C. and out-side N. Y. C , monthly andWednesday figures. 310, 410,

504, 581, 660, 792,902, 992, 1108

By districts and for Chicago,'Wednesday figures 312, 412,

506, 583, 662, 794,904, 994, 1110

Yields 56, 132, 208, 316,.416, 510, 587, 666, 798, 908, 998, 1114

Yields on, Chart of 3United States Housing Authority:


Guaranteed obligations outstanding. . .318, 418,512, 589, 668, 800, 910, 1000, 1116

Summary of operations, 1938 365-369United States Maritime Commission:

Loans outstanding, Dec. 31, 1938 366, 371United States notes:

Circulation 45, 121, 197, 305,405, 499, 576, 655, 787, 897, 987, 1103

United States Treasurer:General account on deposit in Federal Re-

serve banks. (See United States Govern-ment deposits: Federal Reserve banks.)

Uruguay:Bank of:

Condition 78, 154, 230, 340,441, 535, 613, 693, 825, 935, 1027, 1143

Gold reserves 74, 150, 226, 336,434, 528, 606, 686, 818, 928, 1018, 1134


Venezuela:Gold movements to and from U. S. 46, 122,

198, 306, 406, 500, 577, 656, 788, 898, 988, 1104Volkmann, W. G., reelected Class B Director,

Federal Reserve Bank of San Francisco 7Wages and hours of labor:

Chart 458Discussion of 458

Wagner, Robert F . :Letter on 25th anniversary of signing of

Federal Reserve Act 14Wald, Haskell 871War effects on American markets 839-845



Wayne, Joseph, Jr., reelected Class A Director,Federal Reserve Bank of Philadelphia 6

West Africa:Gold production 75, 151, 227, 337,

435, 529, 607, 687, 819, 929, 1019, 1135Wheat crop reports 72, 682, 814, 924, 1014, 1130White, G. J., reelected Class A Director, Federal

Reserve Bank of Atlanta 6Wholesale commodity prices. (See Prices:

Wholesale commodity.)Williams, Alfred H., appointed Class C Director,

Federal Reserve Bank of Philadelphia 248Williams, F. D., reelected Class A Director, Fed-

eral Reserve Bank of Chicago 7Wood, R. E.:

Reappointed Class C Director, Federal Re-serve Bank of Chicago 7

Reappointed Deputy Chairman, Federal Re-serve Bank of Chicago 7

PageWysor, W. G., reappointed Deputy Chairman,

Federal Reserve Bank of Richmond . . 7Young, Owen D., redesignated Chairman and

Federal Reserve Agent, New York 7Yugoslavia:



441, 535, 613, 693, 825, 935, 1027, 1143Discount rates 82, 158, 234, 344,

445, 539, 617, 697, 829, 939, 1029, 1145Gold reserves 74, 150, 226, 336,

434, 528, 606, 686, 818, 928, 1018, 1134Zinc production index:

Adjusted 63, 139, 215, 323,423, 517, 594, 673, 805, 915, 1005, 1121

Unadjusted 64, 140, 216, 324,424, 518, 595, 674, 806, 916, 1006, 1122


FEDERAL RESERVE DISTRICTS

MINN.

MINNEAPOLIS

S.DAK.

KANSAS CITYKANS. !

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Federal Reserve Bulletin December 1939

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