respond - Fraser - Federal Reserve Bank of St. Louis

FEDERALRESERVEBULLETIN

NOVEMBER 1941

Review of the Month—Treasury Finance and BankingDevelopments

Amendment of Consumer Credit Regulation

Consumer Credit—Amendment to, and Interpretations of,Regulation W

Economic Aspects of Federal, State, and Local Taxation

Annual Report of the Bank for International Settlements

BOARD OF GOVERNORSOF THE FEDERAL RESERVE SYSTEM

WASHINGTON

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

ContentsPAGE

Review of the Month—Treasury Finance and Banking Developments. 1077-1083

Amendment of Consumer Credit Regulation. 1084-1086

Industrial Production, By Selected Groups, Expressed as Points in the Total

Index (See pp. 1187-1189 for tables) 1086

From a Legal Standpoint:

Inactive Executive Officer Serving as Director and Member of Discount

Committee 1087

Consumer Credit—Amendment to, and Interpretations of, Regulation W 1087-1094

Foreign Funds Control—General Licenses Issued by the Secretary of the

Treasury 1094-1097

Economic Aspects of Federal, State, and Local Taxation, by Marriner S. Eccles 1098-1103

From the Board's Correspondence—Proposal to Tax Bank Deposits; Extent to

which Reserve Banks Can Finance Defense Expenditures. 1104-1105

Current Events . 1105

Member Bank Earnings, First Half of 1941 (See p. use for table) . 1106

Annual Report of the Bank for International Settlements. 1107-1139

National Summary of Business Conditions. 1140-1141

Financial, Industrial, Commercial Statistics, U. S. (See p. ius for list of tables) 1143-1189

International Financial Statistics (See p. 1190 for list of tables). 1190-1206

Board of Governors and Staff; Open Market Committee and Staff; Federal

Advisory Council 1207

Senior Officers of Federal Reserve Banks; Managing Directors of Branches 1208

Federal Reserve Publications . 1209-1210Subscription Price of Bulletin

The Federal Reserve BULLETIN is issued monthly by the Board of Governors of the Federal ReserveSystem. It is sent to member banks without charge. The subscription price in the United States and itspossessions, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti,Republic of Honduras, Mexico, Newfoundland (including Labrador), Nicaragua, Panama, Paraguay, Peru,El Salvador, Uruguay, and Venezuela, is $2.00 per annum, or 20 cents per copy; elsewhere, $2.60 perannum or 25 cents per copy. Group subscriptions for 10 or more copies, in the United States, 15 cents percopy per month, or $1.50 for 12 months.


mtnnilHBODi

Federal Reserve Bank of Kansas City, 10thStreet and Grand Avenue, Kansas City, Missouri


FEDERAL RESERVE BULLETINVOL. 27 NOVEMBER 1 9 4 1 No. 11

llealtitij finance and Hanking *Pe\/eLopmentl.

Acceleration of the defense effort in recentmonths has resulted in a rapid rise in Govern-ment disbursements, and estimates of expen-ditures for the current fiscal year have beenenlarged. The Government's objective hasbeen to meet the increased outlays by methodsthat would contribute as little as possible toinflationary trends. With this in mind a taxbill was enacted that is expected to raise anadditional 3.5 billion dollars a year. In so faras the Government must resort to borrowingit has announced a policy of issuing obliga-tions that will be purchased largely by invest-ors other than commercial banks. This is forthe reason that bank purchases of securitiescreate new deposits available for consumerexpenditures, while purchases by other in-vestors tap previously existing funds insteadof creating new ones. Two new instru-ments introduced for this purpose are defensesavings bonds and tax anticipation notes.

Tax receipts and proceeds from the sale ofdefense bonds and tax-anticipation notes, to-gether with a reduction in the working bal-ance, were sufficient to meet the larger partof the Treasury's requirements from July tothe middle of October. In the latter part ofOctober, however, the Treasury made a largepublic offering of long-term bonds whichbrought in about 1.3 billion dollars. Towardthe end of the month its offerings of Treasurybills were increased from 100 million dollarsto 150 million dollars a week.

Curtailment of offerings of open-marketsecurities by the Treasury was reflected fromJuly to the middle of October in stability ofGovernment security holdings by commercialbanks. In the latter part of October, however,banks' holdings increased owing to purchasesof the new Treasury bond offering. Bankloans have continued to increase at a rapidrate. Bank reserves, which had declined since

early this year principally on account of anincrease in currency in circulation, were re-duced further in the latter part of October asa result of cash payments by banks to theTreasury for the new bond issue. Excess re-serves were also reduced on November 1 bythe coming into effect of an increase of about1.2 billion dollars in reserve requirements inaccordance with the action announced by theBoard of Governors on September 23. As aresult of these developments excess reservesof member banks, which at their peak a yearago amounted to nearly 7 billion dollars, wereby November 1 reduced to 3.5 billion dollars.At their present level excess reserves arelower than at any time since March 1939 butare still larger than they ever were prior tothat date.

Appropriations and authorizations for de-fense have increased from about 20 billion

dollars at the end of Oc-Progress of tober 1940 to about 60 bil-defense program ,. , ,, .. ,

lion dollars at the presenttime. These figures are those covered by theregular budget and include outlays for theWar and Navy Departments, lend-lease aid,defense housing, and defense activities of civildepartments and agencies. They exclude ex-penditures to be financed by the Reconstruc-tion Finance Corporation as well as BritishGovernment orders in this country for mili-tary purposes placed prior to the beginningof lend-lease aid. Including these two items,the total program exceeds 67 billion dollars.

Expansion in the program has been re-flected in marked increases in actual cash out-lays for defense purposes. Last January theBudget Bureau estimated that defense expen-ditures for the fiscal year beginning in July,1941, would amount to 11 billion dollars. InJune the estimate was raised to nearly 16billion dollars and again on October 5 to 18

1077


Review of the Month

billion dollars. Monthly defense expendituresfrom the budget, as shown in the chart, in-creased from about 300 million dollars inOctober 1940, to 800 million dollars in Juneof this year, and further to about 1,500 mil-lion dollars in October. On the basis of

NATIONAL DEFENSE EXPENDITURES

/ 2 0 0

1940 1941Budget accounts on basis of daily Treasury Statements.

the latest budget estimates, expenditures forthe rest of this fiscal year will average about1,650 million dollars a month. Defense ex-penditures by certain Government corpora-tions, such as the Reconstruction FinanceCorporation and its subsidiary defense com-panies, not included in the budget, have alsoincreased in the past year. Recently theReconstruction Finance Corporation madeloans to the British Government for paymentson war orders placed in this country priorto the lend-lease legislation. By the end ofOctober out of the total defense program of67 billion dollars for all purposes about 15billion dollars had been spent.

Revised estimates of Treasury receipts andexpenditures for the current fiscal year which

ends next June, issued bythe Bureau of the Budgeton October 5, increased es-

timates of total expenditures by 2.4 billiondollars to 24.6 billion dollars. Estimated netreceipts were increased by 2.6 billion dollars

to 12.0 billion dollars, which would leave adeficit for the fiscal year of 12.6 billion dol-lars. The following table gives a summary ofTreasury receipts and expenditures duringthe first four months of the current fiscalyear and the preceding year, with the newestimates for the full fiscal year 1942 com-pared with actual results in 1941. The in-crease in defense expenditures during thecurrent fiscal year is estimated at 11.7 billiondollars. The actual increase in the first fourmonths of the fiscal year was 4 billion dollars.Non-defense expenditures have been some-what below the level of a year ago.

TREASURY RECEIPTS AND EXPENDITURES[In millions of dollars]

Budget expenditures:National defenseOther. . . . -

TotalNet budget receipts

Excess of budget expendituresTrust accounts, etc., excess of re-

ceipts (—) or expenditures ( + ) . .Change in general fund balance

Increase in gross direct debt

July-October

1940

9182,234

3,1521,822

1,330

-189+29

1,170

1941

4,9312,153

7,0842,390

4,694

-80+8

4,623

Fiscal years

1941

6,2556,456

12, 7117,607

5,103

+148+742

5,994

1942 (est.)

18,0006,581

24, 581•11,998

12,583

Budget receipts are estimated to increaseby 4.4 billion dollars during the current fiscalyear over last year. Through October, theactual increase over the same period last yearwas about 600 million dollars, the largest partof which was in income tax receipts, reflect-ing both increased taxes imposed by the re-venue acts of 1940 and the higher level ofincome in the calendar year 1940, as com-pared with 1939. Large increases in receiptsduring the current year will occur in the pe-riod January to June 1942, when income taxcollections will be based on incomes for thecalendar year 1941 and will also reflect theincreases in taxes provided in the RevenueAct of 1941.

The deficit in budget accounts during thefirst four months of the current fiscal yearamounted to 4.7 billion dollars. Except fora small amount of net receipts in accounts

1078 FEDERAL RESERVE BULLETIN


Review of the Month

outside the regular budget, these require-ments were met by an increase in the publicdebt. On the basis of current estimates, re-quirements in budget accounts for the restof this fiscal year will amount to about 8billion dollars.

On September 20 the President signed theRevenue Act of 1941. The estimated addi-

tional yield resulting from thisActe<rfei94ie legislation, on a full-year basis,

is shown in the following table.Because of the lag in the payment of incometaxes and the fact that increased excise taxeswill be in effect only for three-fourths of thefiscal year, it has been estimated that onlyabout 2 billion dollars of the full amount of3.5 billion dollars will be collected in the fiscalyear 1942.

Taxes on the incomes of corporations andindividuals, on estates, and gifts, the capitalstock tax and many excise taxes are increasedand new taxes are imposed. The 10 per centdefense tax imposed by the Revenue Act of1940 is integrated into the regular ratestructures.

Corporatiofi taxes.—A surtax on corporateincomes is imposed at the rate of 6 per centon the first $25,000 of net income and 7 per

ESTIMATED ADDITIONAL YIELD OF THE REVENUE ACTOF 1941, As COMPARED WITH PREVIOUSLY

EXISTING LAW *

[In millions of dollars]

tncome taxes:Corporat ion:

Norma l tax_ __ _ _ _ _ _ _ _SurtaxExcess profits tax _ __ _ _ _

Total corporation income taxes _ _Individual __ _

Total income taxesMiscellaneous internal revenue:

Capital stock taxEstate tax _ . .. _Gift tax ..__ _ .Excise and miscellaneous taxes2

Total miscellaneous internal revenue2- -

Total additional revenue.

Increase ordecrease (—)

- 4 9 3 . 3763.1

1,112. 3

1, 382.11,144. 6

2, 526. 7

22.3141.6

16.0846 8

1,026. 7

3, 553. 4

1 Treasury Department, Division of Research and Statistics. Allestimates show full year effects. Estimates for corporation and individ-ual income taxes are based on levels of income estimated for calendaryear 1941; all other estimates are based on income levels estimated forfiscal year 1942.

2 Excluding $47.5 million non-recurring floor-stock taxes.

cent on net income in excess of that amount.It differs in its effect from an equivalent in-crease in the normal tax because it appliesalso to income from partially tax-exemptsecurities.

No change is made in the general frame-work of the excess profits tax under whichcorporations have the option of calculatingthe "normal profits" credit from which ex-cess profits are measured with referenceeither to base period earnings or to investedcapital. The rate of return allowed on statu-tory invested capital is lowered from itspresent level of 8 per cent to 7 per cent withrespect to invested capital in excess of 5 mil-lion dollars. A substantial increase in excessprofits tax revenues, partly offset by a smallerdecline in normal corporation tax, is ob-tained by reversing the sequence in whichcorporation income tax and excess profitstax liabilities are determined. Under pre-viously existing law, corporation normal taxwas computed first and was allowed as adeduction both in computing "normal profits"and current profits subject to excess profitstax. Under the Revenue Act of 1941, excessprofits tax liability is computed first, andnormal and surtax are not allowed as deduc-tions. Excess profits taxes, however, areallowed as a deduction in determining incomefor normal and surtax purposes. For corpo-rations choosing the invested capital method,it is provided that, with certain restrictions,125 per cent of equity capital invested afterDecember 31, 1940, shall be counted in deter-mining invested capital. The exemption fromexcess profits tax of excess profits derivedfrom the mining of certain strategic metalsin the United States is terminated. Therates of tax are increased by 10 percentagepoints in each bracket and now range from35 per cent on the first $20,000 of excessprofits to 60 per cent on that part of excessprofits over $500,000.

Individual income taxes.—Personal exemp-tions under the individual income tax arereduced from $2,000 to $1,500 for heads offamilies and from $800 to $750 for single

NOVEMBER 1941 1079


Review of the Month

individuals. Rates of surtax are raised; andsurtax is imposed on all income in excess ofpersonal exemption and credit for depend-ents, instead of exempting, as heretofore,the first $4,000 of such income. An optionalsimplified method of determining incometaxes is provided for persons whose grossincome does not exceed $3,000 and is derivedwholly from specified sources; and the creditfor one dependent is disallowed in caseswhere the taxpayer's status as head of familyis occasioned solely by the existence of oneor more such dependents.

The taxes on foreign income recipients andthe rates of the tax withheld at source on pay-ments to them are increased. The existingauthorization to conclude treaties reducingthese rates with contiguous countries is ex-tended to cover all countries of the WesternHemisphere. It is provided that taxpayersowning non-interest bearing obligations, suchas non-interest bearing defense bonds, issuedat a discount and redeemable for fixedamounts increasing at stated intervals mayreport such increments of value as income onan accrual basis even though they reportother income on a cash basis. Certain sim-plifications in income tax accounting are in-troduced with respect to short-term obliga-tions issued on a discount basis by the Fed-eral, State, or local governments.

Excise and miscellaneous taxes.—Existingtaxes are increased or new taxes are imposedon automobiles, trucks, buses, and their parts,refrigerators, business and store machines,commercial washing machines, electric, gas,and oil appliances, radios, phonographs, rec-ords, and musical instruments, photographicapparatus, optical equipment, electric signs,light bulbs and tubes; on tires and tubes andother rubber articles; on safe deposit boxes,sporting goods, luggage, toilet preparations,furs, matches, playing cards, and jewelry; ondistilled spirits and wines; on admissions,cabarets, roof-gardens, club dues, coin oper-ated amusement and gaming devices, bowlingalleys, and billiard and pool tables; on com-munications and the transportation of per-

sons, and the use of automobiles and boats.This list includes a number of articles usingscarce resources needed for defense produc-tion.

As shown in the following table, the in-terest-bearing direct debt of the Government

increased by 4.7 billion dollarspuWifdebl d u r i n £ t h e first f o u r months of

the current fiscal year. Of thisamount about 2.9 billion dollars is representedby sales of savings bonds and new tax notes.

INTEREST-BEARING DIRECT AND GUARANTEEDSECURITIES


Direct obligations:Treasury bondsTreasury notes - _ _Treasury billsPostal savings and pre-war bonds. .

Marketable issues—total

U. S. savings bonds. . .Tax anticipation notesDepositary bondsAdjusted service bonds

Public issues—total. _._ . . . .Special issues

Total direct obligations

Guaranteed obligations

Amountsoutstanding

June 30,1941

30, 2155,6981,603

196

37,713

4,314

241

42, 2676,120

48, 387

6, 360

October31, 1941

31, 7595,5091,404

196

38,869

5,3941,818

61235

46, 3776,664

53, 040

6,930

Changesince

June 30

+1, 544-189-199

+1,156

+1,080+1,818

+61- 6

+4,110+544

+4,653

+570

The open-market direct debt increased by 1.2billion dollars, reflecting the sale for cash inOctober of 1.3 billion dollars of long Treasurybonds and the sale of an additional 100 milliondollars of these bonds to Government agenciesand trust funds, offset in part by the net re-demption of 200 million dollars of Treasurybills. In addition, 200 million dollars ofmaturing notes were exchanged for the newbonds. Special issues to Government agenciesand trust funds increased by 500 million dol-lars. The guaranteed debt showed an in-crease of about 600 million dollars.

Acceleration in the rate of sale of savingsbonds is indicated by the fact that for thesix-month period May to October of this yearsales of defense savings bonds totaled 1.8 bil-lion dollars compared with net sales of 1billion dollars of the former savings bonds in



Review of the Month

the full fiscal year 1940. As shown in thefollowing table the larger part of the sales ofdefense savings bonds has been in Series Fand G bonds. These bonds may be purchasedby investors other than commercial banks inan amount of not more than $50,000 issueprice, in any one calendar year for the twoissues combined. Sales of the Series E bonds,which may be purchased only by individualsin an amount not in excess of $5,000 maturityvalue in any one calendar year, have rangedbetween 100 million dollars and 150 milliondollars a month.

SALES OF DEFENSE SAVINGS BONDS AND TAX NOTESMAY-OCTOBER 1941

[Issue price. In millions of dollars]

M a yJuneJulyAugust _SeptemberOctober

Total

Defense savings bonds

Total

350315342266232271

1,775

SeriesE

101103145118105123

694

Series Fand G

249212197148127148

1,081

Tax anticipation notes

Total

1,037306475

1,818

SeriesA

1887

33

SeriesB

1,019298468

1,785

Receipts from the sales of the new taxnotes, which began on August 1, amountedto 1.8 billion dollars through the end of Oc-tober. Only about 2 per cent of these wereSeries A notes, which are designed for therelatively small taxpayer and the use of whichfor tax purposes is limited to $1,200 principalamount for any one taxpayer in any one cal-endar year. The Series B notes, which yielda lower investment return, are designed forthe large taxpayer, and the amount whichmay be purchased by any one taxpayer islimited only by the amount of his tax liability.

In October, the Treasury sold a new issueof 1.6 billion dollars of 21/2 per cent 1967-1972Treasury bonds. Cash subscriptions totaled10.4 billion dollars, of which 12i/2 per cent,or 1.3 billion dollars, were allotted. In addi-tion, 100 million dollars of the new bondswere sold to Government investment ac-counts, and about 200 million dollars were ex-changed for December 1941 notes. The newissue, although of long term and low rate and

issued in relatively large amount, immediatelyrose to a substantial premium and closed themonth at IO314.

The outstanding amount of Treasury billsdeclined by 200 million dollars during thepast four months. In September, 300 mil-lion dollars of maturing bills were not re-placed. Beginning with the week of October22, however, an additional weekly amountof 50 million dollars of bills was sold.

The amount of guaranteed debt increasedby 600 million dollars in July. At this time,the Treasury refunded 400 million dollars ofmaturing notes of the Reconstruction FinanceCorporation and the Commodity Credit Cor-poration. In addition, cash was raised tofinance these organizations.

During October the Treasury announcedthat in order to reduce the number of financ-ing operations in the market on behalf ofthe Government and to simplify the financ-ing program, it is contemplated that allof the Government-guaranteed issues nowoutstanding in the hands of the public willeventually be converted into Treasury issues.The needs of the Government corporationsand agencies will be supplied directly by theTreasury rather than by the sale of guar-anteed securities. As a consequence of thisprogram, the market will ultimately be deal-ing with but one class of Government obliga-tion. In this connection, on October 23 a newissue of 1 per cent March 1946 Treasurynotes, dated November 1, was offered in ex-change for the 300 million dollars of Recon-struction Finance Corporation notes and 204million dollars of Commodity Credit Corpora-tion notes maturing in November. The 112million dollars of United States Housing Au-thority notes maturing on November 1 werepaid off in cash.

As shown by the chart, prices of Gov-ernment securities are at a high level.

After reaching all-time highsaround the first of August,both partially tax-exempt and

taxable bonds fluctuated within a relativelynarrow range until the latter part of October

Governmentsecurity market

NOVEMBER 1941 1081


Review of the Month

when the long-term partially tax-exemptbonds advanced to successive new high levels.The yield on the partially tax-exempt bondsof 1960-65 declined to a new low of 1.95 percent. The yield on the taxable bonds of 1956-58 declined slightly to the previous recordlow of 2.09 per cent. Yields on notes haverisen somewhat since reaching new low levels

YIELDS ON GOVERNMENT SECURITIES

3-5 YR.

TERM BONDS

rREASURY NOTES-v TAX EXEMPT

A

\

TREA.

3-e; YR TDFACIIDV MOTCC

A-v. -5URY BILLS

A N E W I S S U E S . *

TAXABLE1.00

1939 1940 1941Weekly averages of daily yields of 3- to 5-year tax-exempt

Treasury notes, 3- to 5-year taxable Treasury notes, and partiallytax-exempt Treasury bonds due or callable after 12 years, andaverage discount on new issues of 91-day Treasury bills (tax-exempt through February 1941, and taxable thereafter) offeredwithin week. For weeks ending January 7, 1939 to October25, 1941.

early in September. At the end of October,the yield on 3-to-5 year tax-exempt notes was0.45 per cent compared with 0.31 per centearly in September. The yield on taxablenotes rose from 0.58 per cent to 0.77 percent.

After increasing rapidly for several months,holdings of United States Government securi-

ties by city banks showed littleBank holdings change in August and declined2 i S u ™ e n t somewhat during September

and the early part of October,principally as a result of a reduction duringSeptember of 300 million dollars in theamount of Treasury bills outstanding. Inthe third week of October, however, reportingbanks increased their Government securityholdings by 275 million dollars. Treasurybond holdings were increased by 325 milliondollars in this week, as a result of purchases

of the new issue of long-term bonds sold bythe Treasury on October 20. Since the middleof last year, a period during which borrowingby the Treasury was increased by defenseneeds, holdings of Government direct andguaranteed securities at reporting memberbanks in leading cities have grown by over 3billion dollars, or 26 per cent, and reacheda new high level of 14.7 billion dollars.

At country banks holdings of United StatesGovernment direct and guaranteed obliga-tions increased by 160 million dollars in thethird quarter of the year, according to pre-liminary figures from the September 24 callreport. These holdings have steadily risensince the middle of last year by an aggregateof 760 million dollars, or about 25 per cent.

The sharp rise in commercial loans, whichbegan in the summer of 1940 when producers

first began to receive large de-f e n s e o rders> continued intoOctober. Since August of last

year the increase has been almost uninter-rupted and has amounted to 840 million dol-lars at New York City banks and to 1,260million dollars at reporting banks in otherleading cities. In both cases the rise hasamounted to about 50 per cent. Larger de-fense orders, as well as increased productionin other lines, have required more financingof producers and distributors of goods and alarge part of the needs of the medium-sizeand small firms is being supplied by commer-cial banks.

Loans of banks outside leading cities havealso been increasing. According to prelimi-nary figures just made available in the mem-ber bank call report for September 24, loansof country banks rose by 215 million dollarsin the third quarter of the year. Since themiddle of 1940, loans of these banks haveincreased by more than 800 million dollars,or by about 17 per cent.

Bank deposits have increased further asthe consequence of the expansion of bankloans and investments and of further goldimports. The effect of these factors in in-creasing the amount of bank deposits has



Review of the Month

been partially offset by large withdrawals ofcurrency into circulation and, in the third

week of October, by a sharpb u i ld i ng up of Treasury de-posits at the Federal Reserve

Banks. Consequently adjusted demand de-posits at city banks have shown little netchange since last July.

In New York City, demand deposits havedeclined since July. At banks in other lead-ing cities they have continued to increase,owing partly to the fact that commercialfunds have been moving away from NewYork City to other parts of the country.This movement of funds out of New York hasalso been reflected in a further growth ofbank deposits at country banks and in a risein balances held by these banks with theircity correspondents—principally outside NewYork. In addition to this outward movementof commercial funds, from New York City,institutional and individual investors, whohold large balances in New York moneymarket banks, have drawn on their depositsto purchase Government securities, and thismay account for some of the decline in de-posits at New York banks.

Excess reserves of member banks, whichdeclined by about 2 billion dollars from

January to August, increasedslightly in September butshowed a sharp decrease in

the latter part of October. At the close ofthe month they amounted to about 4.6 billion.The net decline of 2.3 billion dollars sincethe peak reached last January was largelydue to increases of 1.8 billion dollars in moneyin circulation and of 600 million dollars inrequired reserves. Practically all of the de-cline occurred at New York City banks.Changes in member bank reserves and thefactors affecting them in recent years areshown in the chart on page 1142 of thisBULLETIN.

On November 1 excess reserves were fur-ther reduced by 1.2 billion dollars, when the

Decline inexcess reserves

increase in the reserve requirement percent-ages, which was announced by the Board onSeptember 23, became effective. The new re-quirements and those previously in forceare shown in the table on page 1145 of thisBULLETIN. The new requirements are ap-proximately one-seventh higher than thosewhich had been in effect since April 16, 1938.The estimated effect of the increase in re-quirements on the reserve position of thevarious classes of member banks is shownby the following table. By far the largest

CHANGES IN RESERVE POSITION OF MEMBER BANKS BYCLASSES OF BANKS, NOVEMBER 1, 1941


Central reserve city banks:New YorkChicago

Reserve city bankse

Country banks6

All member banks

Requiredreserves

Oldbasis

3,630730

2,5701,130

e8,060

Newbasis

4,110840

2,9501,330

9,230

Increasein

reserverequire-ments

480110380200

1,170

Excessreserves

(newbasis)

920330

1, 450790

3,490

c Estimated.

amount of the increase in requirements, andthe resulting decline in excess reserves, wasat city banks. As shown by the table, 480million dollars of the decline in excess re-serves was at central reserve city banks inNew York; 110 million dollars at Chicagocentral reserve city banks; 380 million dol-lars at banks in the 59 reserve cities; andabout 200 million dollars at country banks.

After the increase in reserve requirementsbecame effective on November 1, total excessreserves were about 3.5 billion dollars. Thisyear, therefore, the entire growth in excessreserves during 1939 and 1940 has been ab-sorbed. The amount of excess reserves re-maining, however, is larger than during anyperiod prior to the spring of 1939 and couldprovide the basis for a further growth of asmuch as 40 per cent in the present volume ofloans and investments of commercial banks.

NOVEMBER 1941 1083


(zon5umet

jQaauLation

THE Board of Governors of the FederalReserve System has adopted Amendment

No. 2 to Regulation W, dealing with consumercredit. This amendment, which is effectiveDecember 1, 1941 and is mainly of an admin-istrative and technical nature, is printed onpage 1087.

One change made by the amendment isthat instalment loans of $1500 or less fortine 'purpose of purchasing articles listed inthe Supplement, but not secured by them, areto be subject to the same rules as have beenin effect for instalment loans secured bylisted articles recently purchased. Theamendment also makes the 18-month maxi-mum maturity apply to all miscellaneous in-stalment loans of $1500 or less, instead of$1000 or less, as previously provided. Inaddition the amendment includes a provisionfor an optional method of treating additionsto outstanding credits, exemptions of certainbusiness loans and certain real estate loans,a provision permitting irregular paymentsby farmers, and a number of minor technicalchanges.

Purpose LoansA loan of $1500 or less which is for the

purpose of purchasing a listed article is tobe limited to the maximum credit value ofthe article (66% per cent of the basis pricein the case of an automobile), even thoughthe loan is not secured by the listed articlepurchased. Under the regulation as origi-nally issued an instalment credit sale by aretailer was limited to this maximum creditvalue and a loan secured by a listed articlerecently purchased was similarly limited.However, this left a loophole since a lendercould advance an amount equal to the fullvalue of an article so long as he did not

take the article as security. The amendmentcloses this loophole.

The figure $1500 was chosen because oneof the purposes of the regulation is to dampenconsumer demand for the listed articles, in-cluding automobiles, and the delivered priceof most automobiles, with the increasedexcise tax, is now more than $1000, whereasat the time the regulation was issued a ma-jority of the automobiles sold for less than$1000.

For modernization loans, however, thefigure was left at $1000. In view of the cur-tailment of new building resulting from prior-ities and other governmental regulations, itseemed undesirable to impose any further re-strictions on the financing of repairs and im-provements to old properties, particularlysince, in some of the communities affected,much of the material and labor entering intosuch work are not scarce or needed in thedefense program.

Non-Purpose (Miscellaneous) LoansThe scope of the regulation with respect

to non-purpose loans (loans not secured by,and not for the purpose of purchasing,listed articles) is to be enlarged. Loans of$1500 or less, instead of $1000 or less, are tobe subject to the 18-month maximum ma-turity. A primary reason why non-purposeloans have been subject to the regulation isthat, in existing circumstances, the purposeof the loan cannot always be definitely deter-mined and the loan may actually be to financeor refinance purchases of listed articles—asin cases, for example, where there has been aprevious combination of a number of loans,a refunding, or a temporary use of otherfunds of the borrower. Consequently, when




$1500 was selected as the figure for purposeloans, it was considered appropriate to raisethe figure for non-purpose loans to the samelevel.

Additions to Outstanding CreditsIf a lender who holds an instalment obli-

gation advances additional money to the cus-tomer or if a retailer who is carrying anoutstanding instalment account sells an addi-tional article to the customer, the lender orretailer is given the option of treating the oldand the new credits separately, or of consoli-dating the two into a new credit with uniformpayments. The payments on this new creditshall be as large as those called for under theold credit and even larger if this should benecessary to pay out the consolidated creditwithin 15 months. As originally issued, theregulation did not give this option, but pro-vided that, after November 1, when a newcredit was extended to the same customerthe old and new credits should be treatedseparately in applying the regulation. Thisrule would have interfered with the practiceof many lenders and retailers who have beenaccustomed to consolidating the two creditsinto a new credit with uniform instalmentsthroughout and would, in some cases, haveimposed a number of mechanical difficulties.The option now offered provides, without anundue liberalization of the regulation, ameans by which the lenders and retailersmay permit uniform instalments.

An unqualified option to consolidate the oldand new credits and treat them as one newcredit with a maturity of 18 months wouldhave had the effect of permitting the lenderor retailer to lengthen the term of the oldcredit. For this reason and also in order tohelp prevent the consolidation procedure fromoperating in favor of one dealer or retailer asagainst another or in favor of one class ofcreditors as against another, the instalmentpayments are required to be not less thanthey were under the old credit and the ma-turity is limited to 15 months.

Business LoansAn instalment loan to the owner of a busi-

ness enterprise for the purpose of financingit, and not for the purpose of purchasing alisted article, is to be exempted. The Execu-tive Order and the regulation were designedto curtail the demand for consumer credit—not business credit. In the original regula-tion it was not found possible to differentiatebetween consumer loans and business loansexcept in so far as that was done by makingthe regulation apply only to miscellaneousinstalment loans of $1000 or less. However,since the amendment provided for the deter-mination of the purpose of loans, whether se-cured by the articles or not, it became pos-sible to make a specific exemption for busi-ness loans. *

"Farmer Plans"In the case of farmers, any schedule of pay-

ments is to be permitted, provided the re-quired down payment is made and not lessthan half the balance is to be paid within halfthe maximum maturity. Although the regu-lation when originally issued made some pro-vision for persons with seasonal incomes, theprovision was found to be inadequate forfarmers whose annual cash income may comein two or three main payments. The provi-sion for irregular payments, safeguarded bythe requirement that half be paid in half themaximum maturity, was considered neces-sary in order not to penalize farmers as com-pared with other instalment purchasers.

Small Down Payments

Retailers are not required to obtain a downpayment if it would be $2 or less. Under theoriginal regulation, the retailer was requiredto obtain the prescribed down payment evenif it was only a few cents. This was a nui-sance both to the retailer and his customerand had virtually no effect upon the total vol-ume of consumer credit. A further reason forthe exemption was that it would eliminate

NOVEMBER 1941 1085



the down payment requirement on many salesof low-priced articles which are usually pur-chased by persons with very small incomes.

Minimum Monthly PaymentsThe provision in the original regulation re-

quiring that instalments be not less than $5per month, which was to have become effec-tive January 1, 1942, was eliminated. Thiswas done because the provision would haveoperated as a hardship on persons of verysmall means, out of all proportion to its effectupon the total volume of consumer credit,and because it would have tended, in someinstances, to influence purchasers on instal-

ment credit to buy more than they need—since the monthly payments would be $5whether the purchase be as small as $10 oras large as $90.

Real Estate LoansCredit to finance or refinance the construc-

tion or purchase of an entire residentialstructure or other entire structure is to beexempted. The regulation as originally is-sued exempted loans secured by first mort-gages on improved real estate, but failed toexempt a number of construction and financ-ing loans secured by junior mortgages. Thishas now been remedied.

Dndu5ttial Production, by Selected y to up 5, £xptei5ed a5Point* in the Total SJndax

Tables giving seasonally adjusted figuresfor the Board's series on output of dur-able manufactures, nondurable manufactures,minerals, and eight subgroupings of manu-factures, all expressed as points in the totalindex of industrial production, appear onpages 1187 to 1189 of this BULLETIN. Thesedata serve a purpose not served by group in-dexes expressed in terms of their own 1935-1939 averages as 100. They show not onlythe relative movements of the groups but also

the broad composition of the industrial struc-ture in each month and the extent to whicheach grouping shown is responsible forchanges in the total index. Figures for dur-able manufactures, nondurable manufactures,and minerals are shown from January 1919to date and those for the other series from1935 to date. These are the data on whichthe industrial production charts in FederalReserve Chart Book I are based.



Ttom a JLeg al Standpoint

Administrative interpretations of banking laws, new regulations issued bythe Board of Governors, and other similar material.

Inactive Executive Officer Serving as Director andMember of Discount Committee

The Board has been requested to render anopinion on the question whether an officer ofa member bank, who is also serving as a direc-tor and as a member of the discount commit-tee of the bank, is to be regarded as an execu-tive officer within the meaning of the Board'sRegulation 0, as amended effective July 1,1939, notwithstanding the adoption of a reso-lution by the board of directors providingthat he is not authorized to participate in itsoperating management.

The Board of Governors has considered thisquestion in the light of the definition of theterm "executive officer" in its Regulation 0,the views expressed by Federal ReserveBanks and others who have considered thismatter, and the authority of the Board todefine the term "executive officer." TheBoard has concluded that an officer of a mem-ber bank, who is also serving as a director andas a member of the discount committee andwith respect to whom a resolution as de-scribed above has been adopted by the boardof directors, is to be considered an executiveofficer within the meaning of Regulation 0except in a case where a provision of the by-laws of the bank or a resolution of the boardof directors requires the service in rotationof every director as a member of the discountcommittee and the directors do in fact serveas members of the committee in accordancewith such by-law or resolution.

CONSUMER CREDITAmendment to Regulation W

Effective December 1, 1941, the Board ofGovernors issued Amendment No. 2 to Regu-lation W dealing with instalment credit,which amends the regulation in several par-ticulars. There follows a nontechnical sum-mary of the changes made by the amend-

ment, together with the text of AmendmentNo. 2:

Instalment loans of $1,500 or less (insteadof $1,000 as previously) are made subjectto the 18-month maturity limit (exceptmodernization loans, where the figure re-mains $1,000).

Instalment loans of $1,500 or less for thepurpose of purchasing listed articles are madesubject to the same limit on amount as nowapplies to instalment loans secured by listedarticles.

In connection with all instalment loans of$1,500 or less and all instalment loans se-cured by listed articles, the lender is requiredafter January 1, 1942, to obtain a signedstatement from the borrower as to the pur-pose of the loan.

Down payments of $2 or less are no longerrequired; and the $5 minimum on monthlyinstalments (which was to become effectiveJanuary 1, 1942) is eliminated.

Instalment loans to make down paymentson listed articles are prohibited.

In addition to first mortgages, which arealready exempt, credit extended to financeor refinance the construction or purchase ofan entire building is exempt.

Instalment loans for business purposes areexempt (except in connection with the pur-chase of listed articles).

In connection with additions to outstand-ing credits, the lender or seller is given anoption: (1) the old credit and the additionmay be treated separately in applying theregulation, or (2) the consolidated creditmay have a maturity of 15 months, withmonthly instalments at least as large asunder the old credit.

For farmers, any schedule of payments ispermitted, if the down payment and maturityrequirements of the regulation are compliedwith, and if one-half of the balance is to bepaid within the first half of the maximummaturity.

NOVEMBER 1941 1087


From a Legal Standpoint

All these amendments are effective Decem-ber 1, 1941; and the effective date of sections8(a), (b), (c), and (d) is postponed fromNovember 1 to December 1, 1941.

Amendment No. 2 to Regulation W

Effective December 1, 1941, Regulation Wis amended in the following respects:

SECTION 2(e)In section 2 (e) the figure $1,000 is changed

to $1,500.SECTION 4(e)

Section 4(e) is stricken out and a new sec-tion 4(e), which reads as follows, is substi-tuted :

(e) Small Down Payments.—In any case in whichthe down payment required by section 4 (a) wouldbe $2.00 or less, the Registrant may disregard suchrequirement.

SECTION 5Section 5 is changed to read as follows:

SECTION 5. INSTALMENT LOAN CREDIT

Except as otherwise permitted by section 6, anyextension of instalment loan credit shall comply withthe following requirements:

(a) Loans Secured by or to Purchase ListedArticles.—If the extension of instalment loan creditis secured, or according to any oral or written agree-ment of the parties is to become secured, by anylisted article which has been purchased within 45days prior to, or is to be purchased at any timeafter, such extension of instalment loan credit; orif the extension of instalment loan credit, even thoughnot so secured, is in a principal amount of $1,500or less and the Registrant knows or has reason toknow that the proceeds are to be used to purchaseany listed article:

(1) The principal amount lent to the obligor(excluding any interest or finance charges, andthe cost of any insurance) shall not exceed themaximum credit value of the listed article specifiedin the Supplement; and, in determining suchmaximum credit value, the Registrant may acceptin good faith a written statement signed by theobligor setting forth the bona fide cash purchaseprice of the article and of any accessories and ofany services, except insurance, rendered in con-nection with the acquisition thereof, which state-ment so accepted shall, for purposes of this regu-lation be deemed to be correct; and

(2) The maturity shall not exceed that specifiedfor the listed article in the Supplement, and suchmaximum maturity shall be calculated from thedate of purchase of such listed article or from thedate of such extension of instalment loan credit,whichever is earlier.

(b) Miscellaneous Loans of $1,500 or Less.—Ifthe extension of instalment loan credit is not subjectto section 5(a) but is in a principal amount of$1,500 or less, the maximum maturity shall notexceed that specified in the Supplement for extensions

of instalment loan credit subject to this section 5(b).(c) General Requirements.—Whether subject to

section 5 (a) or section 5(b), the extension of instal-ment loan credit shall comply with the followingadditional requirements:

(1) The extension of instalment loan credit shallbe evidenced by a written instrument or record, andthere shall be incorporated therein or attachedthereto a written statement, of which a copy shallbe given to the obligor as promptly as circum-stances will permit, and which shall set forth theterms of payment and, if the loan is subject tosection 5(a), the bona fide cash purchase priceused for determining the maximum credit valueof the listed article involved;

(2) Except as permitted by section 5(c) (3),the total of the principal and any interest orfinance charges shall be payable in instalmentswhich shall be substantially equal in amount orbe so arranged that no instalment is substantiallygreater in amount than any preceding instalment;and

(3) Instalments shall be payable at approxi-mately equal intervals not exceeding one month,except that, when appropriate in order to facili-tate repayment in accordance with the seasonalnature of the obligor's main source of income orto encourage off-seasonal purchases of seasonalgoods, the payment schedule may reduce or omitpayments over any period or periods totaling notmore than 4 months during the life of such exten-sion of credit if the schedule increases the sched-uled payments in such manner as to meet theother requirements of this section 5.

(d) Statement of the Borrower.—On and afterJanuary 1, 1942, no Registrant shall make any ex-tension of instalment loan credit (except under theprovisions of section 8(a)) unless, at or before theexecution of the loan contract, he shall have obtainedand accepted in good faith a signed Statement of theBorrower as to the purposes of the loan in formprescribed by the Board. No obligor shall willfullymake any material misstatement or omission in suchStatement. The Registrant, acting in good faith,may rely upon the facts set out by the obligor insuch Statement and, when the Registrant is soacting, such facts shall be deemed to be correctfor the purposes of the Registrant. Until January1, 1942 (after which date a Statement of the Bor-rower must be obtained) the Registrant, in ascer-taining the purposes of the loan or the maximumcredit value of any listed article, may, in good faith,accept and rely upon a written statement in anyform signed by the obligor and such statement shall,for the purposes of this regulation, be deemed to becorrect. In case the Registrant accepts in goodfaith a written statement signed by the obligorthat any listed article which secures an extensionof instalment loan credit has not been purchasedwithin 45 days prior to such extension of credit,such statement shall, for the purposes of this regula-tion, be deemed to be correct.

(e) Credit Subject to Section 5(a) Only in Part.—In case an extension of instalment loan credit con-sists only in part of an extension of credit subject tosection 5 (a), the amount and terms of such extensionof credit shall be such as would result if the creditwere divided and each part treated in good faith asif it stood alone.




A loan or part thereof which is secured by a listedarticle only because of an "overlap agreement,""spreader clause," or other form of general over-alllien or only because the Registrant is prevented bya State law or regulation from having in effectmore than one contract of loan from the same bor-rower at the same time, but which otherwise wouldnot be subject to section 5(a), shall not be deemedto be so secured within the meaning of such section.

(/) Loans to Make Down Payments Prohibited.—An extension of instalment loan credit does notcomply with the requirements of this regulation ifthe Registrant making such extension knows or hasreason to know that any part of the proceeds thereofis to be used to make a down payment on the purchaseprice of any listed article: Provided, That if theRegistrant accepts in good faith a written statementsigned by the obligor that no part of the proceedsis to be so used, such statement shall, for the pur-poses of this regulation, be deemed to be correct.

SECTION 6 (a)Section 6 (a) is changed to read as follows:(a) Any extension of credit which is secured by a

bona fide first lien on improved real estate dulyrecorded or which is for the purpose of financing orrefinancing the construction or purchase of an entireresidential building or other entire structure.

SECTION 6(1)A new subsection reading as follows is

added at the end of section 6:(1) Any extension of instalment loan credit which

is made to a person whose income is derived prin-cipally from the operation of a business enterpriseof which such person is the owner or proprietor,provided the extension of credit is for the purposeof financing such business enterprise and is not forthe purpose of purchasing any listed article orsecured by any listed article purchased within 45days before the extension of credit.

SECTIONS 8(a), 8(b), 8(c) AND 8(d)The effective date of sections 8(a), 8(b),

8(c) and 8(d) has been postponed fromNovember 1, 1941, to December 1, 1941, andthey have been changed to read as follows:

(a) Renewals or Revisions.—If any obligation orclaim evidencing any extension of instalment salecredit or instalment loan credit is renewed or revisedby a Registrant, the extension of instalment creditdoes not comply with the requirements of this regu-lation if such renewal or revision has the effect ofchanging the terms of repayment to terms whichthis regulation would not have permitted in the firstinstance for such credit; Provided, That nothing inthis regulation shall be construed to prevent anyRegistrant from making any renewal or revision,or taking any action that it shall deem necessaryin good faith (1) with respect to any obligation ofany member of the armed forces of the UnitedStates incurred prior to his induction into suchservice, or (2) for the Registrant's own protectionin connection with any obligation which is in defaultand is the subject of bona fide collection effort bythe Registrant.

(6) Additions to Outstanding Credit Held by-Registrant.—An extension of instalment sale creditor instalment loan credit does not comply with therequirements of this regulation if it is consolidatedwith any obligation or obligations held by the Regis-trant evidencing any prior extension or extensionsof instalment credit to the same obligor, unless theadditional extension of credit complies with themaximum credit value limitations applicable thereto(if any) and, in addition, the consolidated obligationcomplies with one of the following options:

Option 1. The terms of the consolidated obli-gation shall be such as would have been neces-sary to meet the requirements of this regulationif the two obligations had not been consolidated;or

Option 2. The consolidated obligation shallprovide for a rate of payment, throughout itsterm, which is (A) at least as large per monthas the rate of payment or payments on the out-standing obligation or obligations being con-solidated would have been for the month com-mencing on the date of consolidation, and (B)is larger to whatever extent may be necessaryin order to repay the consolidated obligationwithin 15 months.

(c) Credit to Retire Obligations Held Elsewhere.—Any extension of instalment loan credit, the proceedsof which a Registrant knows or has reason to knowwill be used in whole or in part to retire any exten-sion of instalment credit not held by such Registrant,shall be subje-ct to the provisions of this regulationto the same extent as if the obligation being retiredwere held by the Registrant.

(d) Statement of Necessity to Prevent UndueHardship.—Notwithstanding the provisions of sec-tions 8(a), 8(b) and 8(c), if a Registrant acceptsin good faith a statement of necessity as providedin the following paragraph, the renewed, revised orconsolidated obligation may provide for a scheduleof repayment as though it were a new extension ofinstalment loan credit subject to section 5(b), eventhough such action results in the reduction of therate of repayment thereon.

The requirements of a statement of necessity willbe complied with only if the Registrant accepts ingood faith a written statement in form and contentprescribed by the Board and signed by the obligorthat the contemplated renewal, revision or otheraction is necessary in order to avoid undue hardshipupon the obligor or his dependents resulting fromcontingencies that were unforeseen by him at thetime of obtaining the original extension of instalmentcredit or which were beyond his control, which state-ment also sets forth briefly the principal facts andcircumstances with respect to such contingencies andspecifically states that the renewal, revision, or otheraction is not pursuant to a preconceived plan or anintention to evade or circumvent the requirementsof this regulation. Until the Board has prescribedthe form and content of the statement of necessitythe Registrant may in good faith accept a writtenstatement in any form, provided such statementotherwise conforms to the requirements of this sec-tion.

SECTION 9(f)Old section 9(f), which is superseded by

language in the amended section 5(e), is

NOVEMBER 1941 1089



stricken out and a new section 9(f), whichreads as follows, has been substituted:

(/) "Farmer Plans".—When appropriate for thepurpose of facilitating repayment in accordance withthe seasonal nature of the obligor's main source ofincome, an extension of instalment credit which ismade to a person who is engaged in agriculture andderives income principally therefrom may be pay-able in any amounts and at any intervals, notwith-standing sections 4(c), 4(d) and 5(c) : Provided,That (1) the extension of credit complies with theapplicable provisions concerning the amount andmaximum maturity of the credit and (2) at leastone-half of the credit is to be repaid within the firsthalf of the applicable maximum maturity.

SECTION 10Section 10 is changed to read as follows:SECTION 10 . EFFECTIVE DATE OF REGULATION

This regulation shall become effective September1, 1941, except that sections 8(a), 8(b), 8(c) and8(d) and the amendments made by Amendment No.2 shall not become effective until December 1, 1941.

SUPPLEMENT, PART 4In Part 4 of the Supplement, the figure

pt,000 is changed to $1,500.

Interpretations of Regulation WThe Board of Governors of the Federal

Reserve System has issued the followinginterpretations of Regulation W relating toConsumer Credit:

Statement of Transaction—Form and Contents

Interpretation No. 84 of Regulation W

The Board has received several questionsregarding the application of sections 4(f)and 5(c) (1) of Regulation W, which becomeeffective October 1, 1941, and relate to the"statement of transaction" required in con-nection with extension of instalment salecredit or instalment loan credit. The answersare given below:

1. It is not necessary that all of the infor-mation required by section 4(f) or 5(c) (1)be included on a single sheet of paper, butif parts of the information appear on twoor more sheets it is necessary that thesesheets be attached together, and that copiesof all of them be given to the obligor together.The statement referred to in these sections,and the copy required to be given the cus-tomer, need not be identical in form.

2. It is not necessary that the particularterminology used in the regulation ("bonafide cash purchase price," "def erred balance,"and "time balance") be used in the statement

of transaction, as long as the statement con-tains the required information. When theontract is in the form of a lease agreement,

such terminology as is applicable to a lease,giving the corresponding information, maybe used.

3. The bona fide cash purchase price of aparticular article and accessories, includingrelevant taxes, may be shown as a total with-out being itemized into various parts. Al-though section 4(f) (2) requires itemizationof (1) the article, (2) the accessories and(3) the services referred to in the section,the items themselves may be itemized withoutstating the portion of the total purchase pricethat relates to each. Accessories which arestandard equipment for the article need notbe individually itemized, and a group of acces-sories which are sold as a single group by themanufacturer may be shown in the statementas a unit.

4. The itemization for a new automobilefollows this same rule, and need not showseparately the matters referred to in para-graphs 1 through 4 of Part 3 (a) of theSupplement. As indicated above, however,the accessories should be indicated, and soshould the relevant services.

5. In the case of an extension of instalmentsale credit subject to section 4 of the regula-tion, item 2 under section 4(f) requires thatthe statement of transaction show the bonafide cash purchase price of the article—theprice at which the seller would sell the articlefor full cash payment—even though the salewill be made at a "time price" which includescarrying charges.

6. The information referred to in each ofthe seven paragraphs of section 4(f) mustbe set forth, and it is not sufficient that anitem of information may be obtained bymathematical derivation from other informa-tion in the statement. However, if the in-terest or finance charge is no.t included in theface amount of the obligation but is an addi-tional amount calculated pursuant to anarithmetic formula plainly set forth in thestatement, paragraphs 5 and 6 do not requirethis amount to be shown in dollars and centsoi- to be included in the statement of thetime balance.

7. In any case in which a State law orlocal regulation requires that sales taxes beshown separately or requires in any otherrespect more detail than that required byRegulation W, the regulation does not pro-hibit such further itemizing.




Heating Stoves—Gas Heaters Suspended From Ceiling


The classification "Heating stoves andspace heaters designed for household use"does not include gas heating units designedto be suspended from the ceiling and operatedwith a fan circulator.

Mechanical Refrigerators—Series of Small Cabinets


The classification "mechanical refrigera-tors" includes certain refrigerating systemsconsisting of (1) one or more cabinets ofwhich each has less than 12 cubic feet ratedcapacity, and (2) a separate mechanical re-frigeration unit servicing these cabinets.This is true even, though the aggregate ca-pacity of the cabinets included in the systemmay be 12 cubic feet or more.

Automatic Gas Systems


Butane, propane, or similar automatic gassystems or containers are included in GroupE of the Supplement.

"Charges for Delivery"


Part 3 (a) of the Supplement to RegulationW provides that the maximum credit valueof a new automobile shall be 66% per cent ofthe purchase price but that such maximumcredit value shall in no event exceed 66% percent of the sum of items numbered 1 through4 as set forth under part 3(a). In this con-nection, the Board has received several ques-tions as to the amounts which may be in-cluded under that portion of item 4 whichpermits the inclusion of "Any bona fidecharges for delivery . . . not included in theforegoing items."

In general this provision permits only theinclusion of bona fide charges for serviceswhich are actually rendered by the seller inconnection with the delivery of a new auto-mobile and which are not included in themanufacturer's retail quotation (item 1) orin transportation charges (item 2). Forexample, charges for such services as lubri-cating, cleaning, polishing, or otherwise con-ditioning the car may not be included underitem 4 if these services are included in item1 or 2; but in case any such services are not

included in items 1 and 2, a charge which isreasonably related to the value of such serv-ices may be included in item 4. Likewise,where the contract of sale includes any addi-tional services connected with the delivery ofthe car, such as greasing the car for a cer-tain period or providing antifreeze, a reason-able charge for such services may be includedin item 4. On the other hand there may notbe included in item 4 a charge which thedealer may make for "advertising" or for"warehousing," nor any other charges whichthe dealer may make except bona fide chargesfor services which are actually rendered bythe seller to the purchaser and are not" in-cluded in items 1 and 2.

Water Heaters Under 85 Gallons Capacity


The classification "water heaters designedfor household use" includes all water heaterswith a storage tank capacity of 85 gallons orless.

Cooking Stoves—Commercial Use Only—Continuous HeatingSurface—Deep-Fat Fryer


The classification "cooking stoves andranges with less than seven heating surfaces"does not include cooking and baking equip-ment that is clearly designed for commercialuse and not suitable for use in households,even though havmg less than seven heatingsurfaces. A cooking stove or range or oven,which is designed for commercial use in res-taurants and hotels, and which has a singleor continuous heating surface or heating unit,is not included. A deep-fat fryer designed forsuch use is not included.

Group E—"In Connection With Existing Structures"


Question has been received as to whethermaterials and services for building a newgarage are included in Group E if the garageis on improved real estate upon which otherbuildings are located but is itself a separatenew structure. For purposes of RegulationW, materials and services in such circum-stances are not considered to be "in connec-tion with existing structures" but are con-sidered to be for new structures, and hencenot included in Group E.

NOVEMBER 1941 1091



Second Mortgage—Sale Credit—Loan Credit


A 24-month note for $650 secured by a sec-ond mortgage on a house is not subject toRegulation W if it is given by the purchaserto the seller as part of the purchase price ofthe house; and the note may be discounted bya bank under section 3(a)(2)(B). Thiswould be true even if plumbing fixtures andother listed articles had been incorporatedin the house, because for the purposes ofRegulation W the sale would be regarded asthe sale of a house and not as the sale ofplumbing fixtures.

Similarly, the fact that a $1500 instalmentloan is secured by a second mortgage on ahouse that was purchased within 45 daysand which at the time of purchase containedplumbing fixtures or other listed articles pre-viously installed, would not cause the loan tobe subject to section 5 (a) as a loan securedby a "listed article which has been purchasedwithin 45 days." The recent purchase is con-sidered to be the purchase of a house ratherthan the purchase of a listed article, and thecase would not be altered by the fact that theseller of the house might have purchased andinstalled the listed article only shortly beforehe sold the house and within 45 days priorto the loan. On the other hand, section 5 (a)would apply if the mortgagor had .owned thehouse for some time and had purchased andinstalled the listed articles within 45 daysprior to the loan, since in such a case themortgagor's recent purchase would be a pur-chase of a listed article rather than the pur-chase of a house.

Air Conditioner—Portable Units


The classification "room-unit air condi-tioners" includes portable units of one horse-power or less.

Two Notes Covering One Repair Job


In the case of a home improvement thatis carried out as a single job totaling $995, ofwhich $550 is for a furnace and other GroupD items while $445 is for Group E items, thequestion has been asked whether a Registrantfinancing the entire job may divide the financ-ing into $445 on an instalment basis subject

to the requirements of Regulation W and$550 on a single-payment basis not subject tothe regulation.

This is a single transaction and may notbe divided by the Registrant in this manner.

-Balloon" Note at End of 12 Months


Questions have been received as to whethera certain plan of repayment meets the re-quirements of Regulation W regarding 18months' maximum maturity and equalmonthly payments for instalment loancredit. There is provision for 11 equalmonthly payments, and a larger twelfth pay-ment at the end of the twelfth month for theremainder. However, there is an expressagreement between the parties that when thetwelfth payment falls due, unless the bor-rower has defaulted on an earlier paymentor unless there is a material impairment ofhis credit, only a portion of the twelfth pay-ment will actually be paid and the remainingportion will be refinanced into six equalmonthly payments in such manner that thenet result will be eighteen substantially equalmonthly payments.

Such an arrangement complies with thespecified requirements of the regulation.

"Bona Fide Cash Purchase Price"


The phrase "bona fide cash purchase price"in section 5 (a) (1) and section 5(c) (1)means the bona fide cash purchase price ofthe article and accessories purchased, includ-ing any sales taxes thereon and any bona fidedelivery and installation charges.

Repairs and Alterations—Effect of Down Payment inSection 6 (b)


A Registrant makes an extension of instal-ment sale credit arising out of the sale of ma-terials and services (including certain GroupD articles) in connection with repairs, altera-tions or improvements upon urban, suburbanor rural real property in connection with anexisting structure. The bona fide cash pur-chase price of all the materials and servicesis $1500 and the bona fide cash purchase priceof the Group D articles is $700. The pur-




chaser makes a cash payment of $150 andremains indebted to the seller in the amountof $1350. Is the transaction exempt undersection 6(b) of the regulation?

The exemption in 6 (b) does not apply sincethe $700 purchase price of the Group Darticles is more than 50 per cent of the over-all deferred balance of $1350.

Repairs and Alterations—One Job, Two Notes


Facts similar to W-97, but the bona fidecash purchase price of all the materials andservices is $3000 and the bona fide cash pur-chase price of the Group D articles is $1400.The purchaser does not make any down-pay-ment and remains indebted in the full amountof $3000. Inasmuch as $2500 is the maxi-mum amount of a loan which may be insuredby the Federal Housing Administration underTitle I of the National Housing Act, thecustomer's obligation totaling $3000 is di-vided into two parts, one in the amount of$2500 which is insured by the Federal Hous-ing Administration, and the other in theamount of $500 which is not insured. The$1400 of Group D items exceeds 50 per centof the $2500 but is less than 50 per cent ofthe $3000. Is the transaction exempt undersection 6(b)?

Since the $3000 represents a single trans-action and is divided into two parts merelyfor convenient treatment under the NationalHousing Act, it is permissible to treat the$3000 as a unit, and hence as an exempttransaction under Section 6(b).

Payments Slightly Less Than Amount Required


The Board was recently asked whether thephrase "maximum credit value in per cent ofbasis price" in the Supplement to RegulationW should be interpreted literally or whetherdown payments which are short a reasonableamount are permissible.

The Board replied that the "maximumcredit value" provided in the Supplement isa figure which should be calculated mathe-matically and not be arrived at by approxi-mation, and therefore the Regulation does notauthorize an extension of credit which is evena few cents in excess of the maximum pro-vided by the Regulation.

Statement of Transaction to be Furnished Promptly


The Board has been asked whether the fol-lowing procedure complies with section 4(f)of Regulation W.

The seller gives no statement of the trans-action to the purchaser but authorizes thefinance company which discounts the obliga-tion to furnish the statement to the purchaserin its normal course of business, with theresult that the purchaser receives the state-ment approximately two weeks after the ob-ligation is discounted by the finance com-pany.

The Board replied that this procedure doesnot comply with the requirements of section4(f).

Instalment Sale Contract May be Rescinded


Regulation W does not prohibit the rescis-sion of an instalment sale contract by agree-ment of the parties at any time if the sellerrefunds all amounts received and the pur-chaser returns the article; as, for example,where the article is found to be defective andthe seller is unable to replace it. However, if-the purchaser returns the article severalmonths after the date of sale on the groundthat it is defective and if the seller does notreplace the article but instead agrees with thepurchaser to rescind the sale and sell thepurchaser another article of the same kindor a similar article of a higher price, thesefacts may indicate that the rescission wasmerely a formality used for the purpose ofevading the Regulation and that the trans-action should have been treated as a trade-inas described in W-71.

Single Payment Credit Changed to Instalment Basis


A Registrant sells a listed article under abona fide agreement that the purchase pricewill be paid in a single payment 60 days afterthe date of purchase. By reason of a changein circumstances and not in pursuance of anyprevious agreement or arrangement, at aboutthe time the payment is to be made the pur-chaser asks that the purchase be changed toan instalment basis. Is it necessary to geta down payment? From what date must themaximum maturity be calculated?

NOVEMBER 1941 1093



Since the sale was made under a bona fideagreement and there were no evasive sideagreements between the parties, it is notnecessary under the present terms of theregulation to get a down payment, and themaximum maturity is 18 months from thedate on which the credit is changed to aninstalment basis.

Air Conditioners—Capacity—Circulating Fans


The classification "Home air conditioningsystems" includes air cooling units that havea rated capacity of 5 tons or less of refrigera-tion and that are designed for use with acentral air circulating system. The classifi-cation does not include circulating fans un-less they are incorporated in the unit. Theclassification of such a unit is not affectedby the character of building in which it isto be used.

Plumbing Fixtures—Water Softeners


The classification "Plumbing and sanitaryfixtures designed for household use" includeswater softeners having a rated capacity of120,000 grains or less of hardness removalbetween regenerations.

Listed and Unlisted Articles Sold Together


Section 4(g) of Regulation W providesthat where a listed and an unlisted article aresold at the same time, the permissible termsshall be determined by dividing the trans-action into two parts, so that the sale of thelisted article will comply with Regulation Wand the sale of the unlisted article will be onterms which the seller would have grantedon that sale if standing alone.

Some sellers have established their ownminimum down payment or minimum peri-odic payment requirements in connectionwith instalment sales, but when two or morearticles are sold at the same time these re-quirements apply to the total. The Boardhas been asked whether section 4 (g) requiressuch a seller to apply his minimum paymentrequirements to the sale of the unlisted ar-ticle as though the listed article had not beensold to the' customer. The Board replied thatthe Regulation does not require him to doso, but permits him to give the same terms

on the part of the sale represented by theunlisted article which he would have given,in a similar combination sale, in the absenceof the Regulation.

FOREIGN FUNDS CONTROLGeneral Licenses Issued by the Secretary of the Treasury

Since the publication of certain GeneralLicenses on pages 987-989 of the October1941 Federal Reserve BULLETIN, the follow-ing General Licenses have been issued by theOffice of the Secretary of the Treasury underthe authority of the Executive Order of April10, 1940, as amended, and Regulations issuedpursuant thereto relating to transactions inforeign exchange, etc.:

Treasury Department, Office of the Secretary,October 9, 1941

General License No. 1A, Under Executive Order No.8389, April 10, 19J+0, as Amended, and RegulationsIssued Pursuant Thereto, Relating to Transactionsin Foreign Exchange, etc.*

A general license is hereby granted authorizingtransactions ordinarily incident to the transfer ofsecurities from a blocked account in the name of anyperson to a blocked account in the same name in adomestic bank, provided both of the following termsand conditions are complied with:

(1) Such securities shall not be transferred fromany blocked account in a domestic bank; and

(2) Such securities shall not be transferred fromany other blocked account if such transfer represents,directly or indirectly, a transfer of the interest of ablocked country or national thereof to any othercountry or person.

E. H. FOLEY, JR.,Acting Secretary of the Treasury.


General License No. 2, as Amended, under ExecutiveOrder No. 8389, April 10, 1940, as Amended, andRegulations Issued Pursuant Thereto, Relating toTransactions in Foreign Exchange, etc.*

General License No. 2 is amended to read as fol-lows:

(1) A general license is hereby granted:(a) Authorizing any banking institution within

the United States to debit any blocked account withsuch banking institution (or with another officewithin the United States of such banking institu-tion) in payment or reimbursement for normalservice charges owed to such banking institutionby the owner of such blocked account;

* Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat.179: Ex. Order 8389, April 10, 1940, as amended by Ex. Order8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regula-tions, April 10, 1940, as amended June 14, 1941, and July 26, 1941.




(b) Authorizing any banking institution withinthe United States to make book entries against anyforeign currency account maintained by it with abanking institution in any blocked country for thepurpose of responding to debits to such account fornormal service charges in connection therewith.(2) Any banking institution within the United

States which during any quarterly period makes anyentries to any account in an aggregate amount inexcess of $25 under the authority of this generallicense shall file promptly with the appropriate Fed-eral Reserve Bank a report showing the name of suchaccount and the aggregate amount of the entries tosuch account under the authority of this generallicense during such quarterly period.

(3) As used in this general license, the term "nor-mal service charges" shall include charges in paymentor reimbursement for interest due; cable, telegraph,or telephone charges; postage costs; custody fees;small adjustment charges to correct bookkeepingerrors; and, but not by way of limitation, minimumbalance charges, account carrying charges, notaryand protest fees, and charges for reference books,photostats, credit reports, transcripts of statements,registered mail insurance, stationery and supplies,checkbooks, and other similar items.



Amendment of General License No. 53, under Execu-tive Order No. 8389, April 10, 191*0, as Amended,and Regulations Issued Pursuant Thereto, Relatingto Transactions in Foreign Exchange, etc.*The definition of the term "generally licensed trade

area" appearing in section (3) (a) of General LicenseNo. 53 is hereby amended in the following respects:

(a) The word "and" is deleted in item (vii) ;(b) A semi-colon is substituted for the period in

item (viii) ; and(c) The following items are added to the end

thereof:(ix) Syria and Lebanon; and(x) (1) French Equatorial Africa, including

the Cameroons; (2) New Caledonia; (3)Tahiti; (4) the French Establishmentsin India.



General License No. 73, under Executive Order No.8389, April 10, 191*0, as Amended, and RegulationsIssued Pursuant Thereto, Relating to Transactionsin Foreign Exchange, etc.*(1) A general license is hereby granted licensing

as a generally licensed national any partnershipwhich is a national of China and which meets all ofthe following conditions:

(a) the partnership has been continuously en-gaged in business within the continental UnitedStates since prior to June 17, 1940;

* Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat.179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regula-tions, April 10, 1940, as amended June 14, 1941, and July 26, 1941.

(b) the active management and control of suchpartnership is vested in partners within the UnitedStates who are not nationals of any blocked coun-try (or are licensed as generally licensednationals) ;

(c) since prior to June 17, 1940, no partner insuch partnership has been a national of any blockedcountry other than China.(2) This general license shall not be deemed to

license as a generally licensed national any partner-ship which is a national of any blocked country otherthan China.

(3) All partnerships licensed herein as generallylicensed nationals shall file with the appropriate Fed-eral Reserve Bank within thirty days after the datehereof a report in triplicate setting forth: (a) thename and address of the partnership; (b) the name,address and nationality of each partner; and (c) astatement that the partnership is licensed as a gener-ally licensed national under this general license. Anypartnership not complying with this requirement isnot authorized to engage in any transaction underthis general license.

(4) Reports on Form TFR-300 are not required tobe filed with respect to the property interests of anypartnership licensed herein as a generally licensednational.



General License No. 71*, under Executive Order No.8389, April 10, 191*0, as Amended, and RegulationsIssued Pursuant Thereto, Relating to Transactionsin Foreign Exchange, etc.*(1) A general-license is hereby granted authoriz-

ing payments and transfers of credit from blockedaccounts in domestic banks for the necessary personalexpenses within the United States of any citizen ofthe United States who is within any foreign country,and for the personal expenses within the UnitedStates of the family of such citizen, provided that thefollowing terms and conditions are complied with :

(a) Such payments and transfers are made onlyfrom blocked accounts in the name of, or in whichthe beneficial interest is held by, such citizen orhis family;

(b) The total of all such payments and transfersmade under this general license does not exceed$500 in any one calendar month for any such citi-zen or his family.

(2) This general license shall not be deemed toauthorize any payment or transfer of credit whichcould not be effected without a license if such citizenwere a generally licensed national.

(3) Domestic banks making any such payment ortransfer shall satisfy themselves that the foregoingterms and conditions are complied with and shall filepromptly with the appropriate Federal Reserve Bankseparate monthly reports in triplicate on Form TFR-111 respecting the transactions for the account ofeach such citizen.


* Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat.179 ; Ex. Order 8389, April 10, 1940, as amended by Ex. Order8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regula-tions, April 10, 1940, as amended June 14, 1941, and July 26, 1941.

NOVEMBER 1941 1095




General License No. 32, as Amended, Under ExecutiveOrder No. 8389, April 10, 19%0, as Amended, andRegulations Issued Pursuant Thereto, Relating toTransactions in Foreign Exchange, etc*

General License No. 32 is amended to read asfollows:

(1) A general license is hereby granted authoriz-ing remittances by any individual through anydomestic bank to any individual who is a nationalof a blocked country and who is within any foreigncountry, and any domestic bank is authorized toeffect such remittances, provided the following termsand conditions are complied with:

(a) Such remittances are made only for thenecessary living expenses of the payee and hishousehold and do not exceed $100 in any one calen-dar month to any one household, except that addi-tional sums not exceeding $25 in any one calendarmonth may be remitted for each member of thepayee's household in addition to the payee, pro-vided that in no case shall a sum in excess of $200per calendar month be remitted to any one house-hold;

(b) Such remittances are not made from ablocked account other than from an account in abanking institution within the United States inthe name of, or in which the beneficial interest isheld by, the payee or members of his household;

(c) If the payee is within any blocked country,the remittance may be effected only:

(i) By the payment of the dollar amount ofthe remittance to a domestic bank for credit toa blocked account in the name of a bankinginstitution within such country; or

(ii) By the acquisition of foreign exchangefrom a person in the United States having alicense specifically authorizing the sale of suchexchange.(d) If the payee is within any foreign country

other than a blocked country the remittance maybe effected in the same manner that such remit-tance would be effected if the payee were not anational of a blocked country.

(2) All individuals making such remittances andall domestic banks effecting such remittances shallsatisfy themselves that the foregoing terms and con-ditions are complied with.

(3) Domestic banks through which any such re-mittances originate shall execute promptly Section .Aof Form TFR-132 in triplicate with respect to eachsuch remittance. When so executed, such copies ofForm TFR-132 shall be forwarded promptly to thedomestic bank ultimately transmitting abroad (bycable or otherwise) the payment instructions forsuch remittance and the latter bank shall, upon thereceipt thereof, execute Section B of such copies ofForm TFR-132 and promptly file such executed re-port in triplicate with the appropriate Federal Re-serve Bank. If the domestic bank through whichany such remittance originates is also the bank ulti-

* Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat.179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regula-tions, April 10, 1940, as amended June 14, 1941, and July 26, 1941.

mately transmitting abroad the payment instructionsfor such remittance, then such bank shall executeboth Sections A and B of such report. No reporton Form TFR-132 shall be deemed to have beenfiled in compliance with this general license unlessboth Sections A and B thereof have been duly exe-cuted as herein prescribed.

(4) As used in this general license the term"household" shall mean:

(a) those individuals sharing a common dwellingas a family; or

(b) any individual not sharing a common dwell-ing with others as a family.



General License No. 33, as Amended, Under ExecutiveOrder No. 8389, April 10, 194,0, as Amended, andRegulations Issued Pursuant Thereto, Relating toTransactions in Foreign Exchange, etc.*

General License No. 33 is amended to read asfollows:

(1) A general license is hereby granted authoriz-ing remittances by any individual through any domes-tic bank to any individual who is a citizen of theUnited States within any foreign country and anydomestic bank is authorized to effect such remit-tances, provided the following terms and conditionsare complied with:

(a) Such remittances do not exceed $500 in anyone calendar month to any payee and his house-hold and are made only for the necessary livingand traveling expenses of the payee and hishousehold, except that an additional sum not ex-ceeding $1000 may be remitted once to such payeeif such sum will be used for the purpose of enab-ling the payee or his household to return to theUnited States;

(b) Such remittances are not made from ablocked account other than from an account in abanking institution within the United States inthe name of, or in which the beneficial interest isheld by, the payee or members of his household.(2) Remittances herein authorized shall be effected

pursuant to the terms and conditions of (c) or (d),as the case may be, under (1) of General License No.32. If remittances cannot be effected pursuant to(c) under (1) of General License No. 32, domesticbanks are authorized to effect such remittances inany of the following three ways:

(a) By establishing or maintaining free dollaraccounts;

(b) By payment of the dollar amount of theremittance to a domestic bank for credit to ablocked account in the name of a banking institu-tion within any blocked country; or

(c) By payment of the dollar amount of theremittance to a domestic bank for credit to thedollar account of a banking institution which isnot a national of any blocked country.

•Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat.179 ; Ex. Order 8389, April 10, 1940, as amended by Ex. Order8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regula-tions, April 10, 1940, as amended June 14, 1941, and July 26, 1941.




(3) All individuals making such remittances andall domestic banks effecting such remittances shallsatisfy themselves that the foregoing terms andconditions are complied with.

(4) With respect to each remittance made pur-suant to this general license, reports on Form TFR-132 shall be executed and filed in the manner andform and under the conditions prescribed in GeneralLicense No. 32.

(5) As used in this general license the term"household" shall be deemed to have the meaningprescribed in General License No. 32.

E. H. FOLEY, JR.,Acting Secretary of the Treasury,


General License No. 72, as Amended, Under ExecutiveOrder No. 8389, April 10, 19J>0, as Amended, andRegulations Issued Pursuant Thereto, Relating toTransactions in Foreign Exchange, etc.*

Paragraph (2) of General License No. 72 is herebyamended in the following respects:

(a) The following sentences are deleted:"Domestic banks are authorized to effect thepayments referred to in (c) and to establishand maintain free dollar accounts if neces-sary, and only to the extent necessary, toeffect such payments. Domestic banks arenot authorized to establish or maintain freedollar accounts in cases where such paymentsmay be effected in the manner prescribed in(a) or (b) of General License No. 32, asamended."

(b) The following sentence is substituted for thesentences deleted by paragraph (a) of thisamendment:"Domestic banks shall effect the paymentsreferred to in (c) pursuant to the terms andconditions of paragraph (2) of General Li-cense No. 33."



General License No. 9, as Amended, Under ExecutiveOrder No. 8389, April 10, 19 UO, as Amended, and

*Sec. 5 (b ) , 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat.179; Ex. Order 8389, April 10, 1940, as amended by Ex. Order8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regula-tions, April 10. 1940. as amended June 14, 1941, and July 26, 1941.

Regulations Issued Pursuant Thereto, Relating toTransactions in Foreign Exchange, etc.*General License No. 9 is amended to read as

follows:(1) A general license is hereby granted authoriz-

ing the bona fide purchase and sale of commodityfutures contracts and of evidences of ownership ofactual commodities on an exchange or board oftrade within the United States by banking institu-tions within the United States, for the account ofnationals of any blocked country, pursuant to theinstructions of such nationals, and necessary trans-fers or other dealings in evidences of ownership ofcommodities, transfers of credit and payments be-tween accounts in banking institutions within theUnited States as required in connection with suchpurchases or sales or because of fluctuations in themarket value of the commodities covered by suchcontracts or evidences of ownership, provided that:

(a) No such purchase shall be made except forthe purpose of covering a short position takenprior to October 25, 1941, in the account of thenational for whom the purchase is made;

(b) No such sale shall be made except for thepurpose of liquidating a long position taken priorto October 25, 1941, in the account of the nationalfor whom the sale is made; and

(c) In the case of either purchase or sale thenet proceeds of the transaction are credited to ablocked account in the name of the national forwhose account the transaction was effected and inthe banking institution within the United Stateswhich maintains the account for which the trans-action was effected.(2) Each banking institution engaging in any

transaction herein authorized is required to filepromptly with the appropriate Federal ReserveBank monthly reports showing the details of eachsuch transaction, including a description of thecommodity futures contracts or evidences of owner-ship of actual commodities purchased or sold, thedates of the purchases or sales, the persons forwhose account the purchases or sales were made,the price at which each purchase was made, thename of the exchange or board of trade on whicheach such transaction was effected, and the netmarket position in the commodity in question ofthe national for whose account the transaction waseffected before such transaction and after suchtransaction.


•Sec . 5 (b ) , 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat.179 ; Ex. Order 8389, April 10, 1940, as amended by Ex. Order8785, June 14, 1941, and Ex. Order 8832, July 26, 1941 ; Regula-tions, April 10, 1940. as amended June 14, 1941, and July 26, 1941.

NOVEMBER 1941 1097


conomic ofi Tectetai,, and JLocaL taxation

by

MARRINER S. ECCLES :

IT has not been my privilege heretofore tospeak before an audience of tax authorities.

While I cannot hope to add to your technicalenlightenment, I am venturing to outline toyou some of the broader national aspects oftaxation in relation to fiscal and monetaryaction that, in my judgment, are of the great-est importance to this country now and inthe future. In what I have to say I am, ofcourse, speaking only for myself.

For a long time I have been interested inmaking fiscal policy play its proper part in abroad program for maintaining that orderlyeconomic progress that ought to go step bystep with the steady growth in our human,resources and in our technical knowledge.Except during major wars, our State andlocal governments have until recently beenmuch more important from the financial pointof view than the Federal Government. Al-though Federal revenues and expenditureshave greatly expanded during the past decade,it is only since the beginning of the defenseprogram that Federal expenditures have be-gun to exceed aggregate State and local ex-penditures. It is only in the current fiscalyear that Federal taxes will exceed aggregateState and local taxes. No one who is inter-ested in a more intelligently planned fiscalpolicy for the nation as a whole can fail totake account of the financial problems of ourState and local units of government, and ofthe vast complex of taxing jurisdictions num-bering more than 175,000.

The principles that should govern presentpolicy are simple. If we are to attain thebroad objectives of our present nationalpolicy, expenditures for defense must absorban increasingly large proportion of our na-tional income. This general policy is, of

* An address by Marriner S. Eccles, Chairman of the Board ofGovernors of the Federal Reserve System, before the luncheonmeeting of the National Tax Association at the University ofMinnesota, October 14, 1941.

course, easy to state, but difficult to apply.Our people—business men, labor, farmers—are still thinking mainly in terms of theprofits they hope to make rather than of thesacrifices which will be required of all groupsof our population. As yet our standard ofliving has not suffered and relatively fewdislocations have resulted. In some localitieswhere there have been sudden large increasesin population due to the expansion in defenseindustry, the strain of providing adequatepublic services is severe, but in general Stateand local revenues are exceeding budgetaryexpectations and relief rolls are diminishing.The temptation is strong to expand Govern-ment services and get rid of unpopular taxes.Sound public policy requires that both ofthese temptations be resisted. Public worksnot directly connected with defense, no mat-ter how meritorious on general grounds,should be postponed until after the emergencyhas passed and we can once more afford todevote our men and materials to raising thestandard of living of our citizens. I cannotagree with the superficially logical view thatState and local taxes should be reduced inorder to make it easier for taxpayers to bearthe burden of increased Federal taxes. It isnatural for taxpayers to attempt to avoid areduction in their standard of living, buttaxes will not serve the essential purpose ofhelping to divert resources to defense pro-duction unless consumer expenditures aresharply reduced.

State and local government should decreaseexpenditures. They should not reduce exist-ing tax rates and they should devote surplusrevenue to the repayment of debt. This wouldbe anti-inflationary, in harmony with govern-mental policy. In commenting upon the regu-lation recently issued by the Board of Goy-ernors to dampen consumer instalment credit,I emphasized the importance of the repay-ment of debt by individuals:

Note.—Views expressed in signed articles published in the BULLETIN are those of the writers and notnecessarily those of the Board of Governors of the Federal Reserve System.




"When incomes are at high levels, that is thetime when people should reduce their debts or getout of debt. Our people cannot spend their in-creased incomes and go into debt for more andmore things today without precipitating a priceinflation that would recoil ruinously upon all ofus. . . . By deferring civilian demand at thistime, we can help avoid inflation, we can aid indefense, and we can store up a backlog of buyingpower that will help offset a post-defense slump."

Repayment of debt by State and local govern-ments is equally important at this time.

Looking ahead, however, to the post-de-fense period, the problems that we will thenbe facing will be the same in their essentialnature as those that confronted us during the30's and for which we succeeded in findingonly a partial solution until the beginningof large-scale expenditures under the defenseprogram. They are the problems of povertyin the midst of plenty; of the capacity toproduce outrunning the power to purchaseand consume; of millions of able-bodied andskilled workers without employment; of idleplants and factories. Yet, if we have thewill, we know the way to meet those prob-lems. We have before our eyes a conclusivedemonstration of the way in which vigorousand determined action by Government cantransform a situation of general overabund-ance to a situation of general scarcity withinthe space of a few months.

The general problem of finding a marketfor the products of farms and mines andfactories that is large enough and stableenough to provide steady employment for allwho wish to work is one that confronts allthe industrial countries of the modern world.In the United States this problem is com-plicated by the great size of our country andthe diversity of our economic activities. Inthose parts of the country that were settledearliest, wealth has accumulated and fromthe very beginning of our economic historyaccumulated wealth in these areas has soughtand found an outlet for investment in thedevelopment of the resources of the frontierregions that were one by one opened up tosettlement. Year after year this processcontinued. The result has been a vast aggre-gation of obligations which the citizens ofareas that offered opportunity for investmentowed to citizens of areas that had capitalseeking investment. These obligations tookvarious forms: mortgages on urban residen-tial and business properties and on farms,the securities, both stocks and bonds, ofmines, public utilities, and other business en-

terprises, and the obligations of State andlocal governments. As the loans and invest-ments grew, the volume of interest, dividends,rents and amortization payments also grew.Debt payments had to be maintained both intimes when prices for the produce of debtorareas were high and markets were large andin times when prices were low and marketswere restricted.

In general, the creditor areas are also cen-ters of manufacturing that must look for amarket not only to their own citizens but tothe country as a whole. The maintenance ofeconomic balance in the country as a wholerequires that citizens of debtor areas haveenough money income both to maintain in-terest, amortization and other payments ontheir obligations to investors in the creditorareas and to maintain at a high level theirpurchases of the output of the factories of thecreditor areas. They must maintain theirstanding both as good credit risks and asgood customers. This healthy state of na-tional economic balance is continually beingupset by forces that are entirely outside thecontrol of the States or of the individualbusinessman and the individual worker. Theresult is recurrent periods of breakdown anddistress, bankruptcy in debtor areas, idlefactories in creditor areas and widespreadunemployment and hardship in the countryas a whole. There is no essential differencebetween this situation and that resultingfrom international debts. Both are, in es-sence, exchange problems. By tariffs, quotas,exchange restrictions, or even by resort tomore punitive steps of a military or economicnature, including expropriation, nations at-tempt to redress the situation. The FederalGovernment alone can remedy this conditionamong the States—and taxation is one of themost effective means. Through that mediumfunds which the creditor areas drain out ofdebtor areas through interest, dividends andrents, as well as payments on debt, can bekept flowing back to sustain employment, tokeep mines and factories in the debtor areasoperating and continuing to yield returns tothe creditor areas. I realize that the creditorStates complain about paying more in taxesin proportion to what they get back fromthe Federal Government than do the debtorStates. But that is a short-sighted attitudewhich fails to comprehend that in no otherway can the debtor areas continue to yieldreturns to the creditor areas. I recognizealso that the Federal form of government

NOVEMBER 1941 1099



does not adapt itself easily to a centralizedand coordinated attack upon problems thatmust be dealt with as national problems ifthey are to be dealt with at all.

The problem of maintaining the standing ofour citizens as both good credit risks and goodcustomers is basically one of maintaining thenational income at levels which representthe fullest possible utilization of our laborsupply and other economic resources. Debtswhich can be easily carried and paid off whenthe national income is stable or steadilygrowing become insupportable when incomefalls. Defaults and bankruptcies used to bethe accepted methods of dealing with thesedifficulties. But such methods are crude andunsatisfactory both in terms of economicvalues and human values. During the de-pression we developed better methods byattacking the problem from both ends, byseeking to restore incomes and by adjustingdebts of farmers and home owners throughthe Farm Credit Administration and theHome Owners' Loan Corporation.

In the future, the most important safe-guard against the danger of a relapse intothe intolerable conditions of the early 30'swill be a long-run plan for public investment,adapted to the differing needs and conditionsof our different geographical areas. So far aspossible, this should take the form of produc-tive public works and expenditures not onlyto improve the basic conditions which areresponsible for keeping the standards of liv-ing in some of our States lower than in others,but also to raise the standard of living par-ticularly in the lower income groups wher-ever they may be. Productive public invest-ment, which should be noncompetitive withprivate enterprise, means not only roads,public buildings, subsidized housing, bridges,dams and irrigation projects; it also meansbetter education and a higher level of publichealth and nutrition. The fact that so manyof our young men called up for militaryservice were shown on medical examinationto be physically unfit is a shameful revelationof our neglect, as a democracy, to deal withnational health and nutrition problems.

We will also need to extend and to makemore uniform as between citizens living indifferent States the system of social securitybenefits. This mechanism is ideally suitedto use as an anti-inflationary measure intimes like the present and an anti-deflationarymeasure in periods such as we may have whenthe defense effort is over. This is the time

to build up a reserve by increasing the taxesboth for old age and unemployment, decreas-ing the taxes and drawing on the reserve asunemployment develops. And to insure thatincreased current revenues will be followedby an appropriate flow of outpayments whenthey are needed to combat the deflationaryforces of the post-defense period, the old-ageinsurance system should be converted fromits present contributory basis to a systemthat frankly recognizes and meets the nationalobligation to provide a minimum of supportfor all of our needy aged. We should giveeveryone reaching the age of 65 a minimumof 30 dollars a month, regardless of theamount of his contribution to the system.Variations in payments to meet local condi-tions should be made possible by Federalgrants matching additional payments madeby the States up to 10 dollars a month, thusenabling maximum payments of 50 dollarsa month. The Federal Government shouldrecapture, by means of the income tax, pay-ments of this type in excess of amountsneeded by the aged to bring their total in-come up to a level representing a minimumstandard of comfort. Such a revision woulddo away with the present complicated set ofrules governing benefits; it would completelyremove the cost of old-age pensions from thebudgets of our less wealthy States; and itwould make the support of the aged a nationalresponsibility, as it should be. I also thinkit essential to nationalize the unemploymentinsurance program extending the coverageto all workers and increasing the benefitsboth as to amount and time, increasing therates and providing that employees con-tribute 50 per cent of the tax.

If we are to be sucessful in the objectiveof creating a high and steadily increasingdemand for the products of industry afterthe defense period, we must adopt a pro-gressive tax system bearing heavily uponsavings concentrated in creditor areas andlightly upon the great mass of families ofthe low income groups. This means thatwe must get rid of, or at least check thegrowth of the sort of taxes to which ourStates have unfortunately been forced toresort more and more in recent years. I amreferring to the general sales taxes and thetaxes on gasoline, tobacco, and other articlesof mass consumption. These have taken onincreasing importance in State tax structuresin recent years as a consequence of theinadequacy of the general property tax and




the pressure to find funds to finance reliefand other welfare expenditures. Althoughthese taxes were enacted with the commend-able motive of preserving the solvency andcredit standing of our State and local govern-ments, they had an unfortunate effect uponthe level of activity in the economy as awhole and were among the factors that madenational recovery slow and incomplete untilthe beginning of the defense program. Theireffectiveness as revenue producers is largelyattributable to the fact that the Federal Gov-ernment continued on a deficit basis through-out almost the whole of this period andthereby provided the stimulus for expansionof the consumer expenditures upon whichthese taxes were levied.

If we are to make progressive taxes themajor element of our national tax structure,however, it will not be possible to continuethe present system of having both the Statesand the Federal Government levy taxes oncorporate and individual incomes and trans-fers at death. Increases in the rates of thesetaxes sufficient to make them contribute amajor share of total governmental revenuesover the long run would so intensify theexisting difficulties that some change in thepresent chaotic system would be unavoidable.Citizens and corporations in some jurisdic-tions are lightly taxed because of a fixedpolicy in their States to compete for thedomicile of corporations and persons ofwealth. In other States they are heavilytaxed because their States have taken theleadership in the use of progressive taxes.It has long been recognized that uniformityand equity can be attained only by making thetotal tax levied on income and on gifts andbequests a matter for Federal control. Thismight be done along the lines suggested toyou by Mayor LaGuardia at your conferencelast year, by the device of allowing a limitedtax credit against Federal taxes for Statetaxes of similar type. We have alreadyadopted this device for purposes of the Fed-eral estate tax and the Federal unemploy-ment compensation tax and we have seenthat it does give a powerful incentive to theseveral States to enact and collect a tax ofa particular type, when they are led to do soby the knowledge that the revenue will goto the Federal Government unless they takeappropriate action. However, while thisdevice creates a presumption that a State willlevy taxes only up to the amount of the Fed-eral tax credit allowed, it does not guarantee

the taxpayer against the possibility that aState government, hard pressed for revenue,may not go considerably beyond this limitand it does not eliminate the possibility thatthe same income or the same transfer ofproperty at death will be taxed by more thanone State. In the end the only thorough-going cure for these difficulties lies in a dras-tic reallocation of taxing powers between theStates and the Federal Government. Suchan allocation would involve restricting theright to levy taxes on income, gifts, and be-quests wholly to the Federal Governmentwith redistribution of a share of the revenuefrom these sources to the States. I knowhow controversial this subject is but I thinkwe will have to face, quite frankly, the im-plication that State revenues will tend toconsist more and more of taxes shared withthe Federal Government and of grants fromthe Federal Government, which already makeup about 14 per cent of State revenues. Thereal question is how to retain the valuableelements of local initiative, local control overgovernmental services and adaptation ofservices to the differing needs and conditionsof differing areas. We have had enoughexperience with Federal grants and withFederal direct expenditure programs duringthe depression to know that this problem isnot insoluble. We should continue to followthe broad policy that has grown out of theseactivities of leaving responsibility for initia-tive as to the type of activity to be under-taken in the hands of State and local govern-ment, to leave, wherever possible, the detailedadministration in their hands and to providefor Federal supervision only to the extentnecessary to insure that funds are wisely,prudently and honestly used. In a programof the magnitude and novelty that character-ized Federal spending for recovery, it is notsurprising that there were mistakes but thefailures as well as the successes of this periodof experiment provide a valuable basis forthe wise planning of the future.

I have outlined in a general way some ofthe main considerations that I think shouldapply in shaping taxation policy to the needsof the defense and post-defense periods. Letme add, however, that all I have said is basedupon my profound conviction that we mustmake democracy function more effectivelyin the future than in the past—and that thiscan be done by democratic processes andmethods, primarily by use of the Govern-ment's broad functional powers of control.

NOVEMBER 1941 1101



Fiscal and monetary action, properly used,can go far towards correcting the basic causesof economic breakdown. These over-all, func-tional powers—of which taxation is the mostpotent single instrument—need to be supple-mented by some direct controls at all times,particularly in a time like the present whenwe have acute shortages of strategic ma-terials. However, the more wisely and effec-tively over-all controls are applied, the lesswill be the area in which there will be needfor direct measures.

In the past, we have been slow, often tooslow, to recognize changed conditions and toadapt our system to them. We have too oftentolerated poverty while we failed to recognizethat the proper function of the democraticsystem is dynamic, not static. Too oftenwhat we have thought of as our rights werewrongs for great numbers of our fellow citi-zens. We can—we must preserve our Con-stitutional guarantees—freedom of enter-prise and initiative, subject only to such limi-tations and restraints as are necessary to pro-tect the public interest. But we must recog-nize that the right to work must be coupledwith the opportunity to work. Freedom ofspeech, freedom to worship as we will, free-dom of the press, all of our cherished libertiesare of cold comfort to the destitute. There isno reason, except willful blindness, why wecannot make our system function far betterthan it ever has before by guaranteeing thatno willing, able-bodied worker shall lack foremployment and that the aged shall not be inabject want.

I grow impatient—for events move swiftlyin the world today—with those in your fieldand mine who say that fiscal and monetarypolicies suitable for the past are necessarilyappropriate today. It is surprising howmany who should know better, who shouldhave learned from the experience of the pastdecade, still hold that taxation should bebased exclusively on considerations of theneed for raising revenue, without regard forthe social and economic necessities that onlythe tax instrument can be adapted to meet,if intelligently used by Government.

I recognize fully that in the day when wehad a scarcity of capital, when new capitalaccumulations more or less automaticallyflowed into new production, it was wise publicpolicy to have taxation contribute so far aspossible to capital formation. All that wecould amass at home and billions more thatwe borrowed from abroad went into the rapid

expansion of the nation across the face ofthis continent. But I deny that in a day whencapital is over-abundant in relation to the out-lets for its private investment it is still wisepublic policy to encourage its accumulation instagnant pools. Rather I have favored dur-ing the decade of the 30's tax policies thattended to maintain the flow of purchasingpower in the economy by forcing idle fundsback into the circulation stream. That is adeparture from the older orthodoxy, to besure, but it involves no loss of fundamentalliberties. It is no threat to democratic insti-tutions. Rather, it is absolutely essential fortheir preservation. Similarly, I have favoredthe appropriate accompanying monetary poli-cies. Thus during the depression, I favoredmaking the supply of money abundant andinterest rates low in order to create an anti-deflationary climate which would be favor-able for recovery provided positive actionwere taken at the same time in the fiscal field.By the same reasoning, I favor such anti-in-flationary fiscal and monetary policies as arepossible at this time, when the economy hasmoved rapidly towards full production andemployment, under the stimulus of large de-fense expenditures.

In the day of capital scarcity, in the daywhen the gold standard prevailed for most ofthe world, even though it was never the un-managed mechanism pictured by its most ar-dent champions, there may have been logicin relegating taxation to the role of revenueonly, and in putting some reliance upon theinterest rate as a regulator of economic ex-cesses. But the late 20's disabused our mindsof the notion that a high interest rate couldcurb speculation. The early 30's should havetaught us that a negative fiscal policy wasboth economically and politically untenable.The later 30's should have demonstrated to usconvincingly that a more positive policy, eventhough halting and hampered by widespreadresistance, can have the most powerful effectin economic restoration. And the presentperiod is giving us irrefutable proof of thedegree to which a vastly expanded, positivepolicy called forth by national peril ratherthan by deliberate choice, can swiftly trans-form the economy from underemployment toboom conditions. Unhappily, the boom con-ditions are largely concentrated in the indus-trial sectors of the economy in the productionof the things of war instead of the things ofpeace that improve our standards of living.The logic of having taxation play a passive,




neutral role in times past, and of havingmonetary policy responsive to internationalgold movements, rather than subject to na-tional direction and control, is no longer validin the world of today. Rather, the respectivespheres of fiscal and monetary policy are re-versed. Fiscal policy has assumed the great-est importance as a democratic instrument ofeconomic action, while monetary policy as-sumes a secondary place. Both must be co-ordinated by deliberate action.

Even a cursory review of the economic his-tory of the last dozen years indicates not onlythat democratic nations must and can with-out sacrifice of any fundamental principlesuse the functional Government controls offiscal and monetary action, but that no otherrational choice is open to those who professto be in favor of preserving our institutions.The question is no longer whether such func-tional powers should be turned deliberatelyto helping us solve our economic problems,but whether we can so organize and coordi-nate our democratic processes, that the neces-sary flexibility and administrative discretionwill be afforded to achieve the best results.I am aware of the difficulties. They are in-herent in established legislative processes,and the division of powers. They are present,particularly, in the relationship between theFederal Government and the States.

We have not made much progress towardssimplification so far, but the time has comewhen we can no longer continue to toleratethis chaos. For the fact is that with the in-creasing assumption by modern governmentsof social and economic responsibilities, in thelight of the increasingly important role thatgovernments play in affecting economic con-ditions, what may have been an endurableconflict in the highly important fields of tax-ation is now too serious, too much of a limi-

tation upon necessary democratic action, toignore.

It is not necessary, before this audience, tostress the point that there can be no con-sistency or continuity of national economicpolicy, it can have no adequate flexibility, ifit must be exercised in conflict rather than inharmony with the States. Manifestly if theFederal Government is to be effective in usingits powers to dampen inflationary tendencies,State policies must, on the whole, be aimed inthe same direction. In the post-defense era,Federal action to offset a slump will be in-effective to the extent that the States are notprepared to act in concert with Governmentpolicy.

In brief, monetary policy should be theservant, not the master, in the economy. Weshould rely heavily upon fiscal policy, itstiming and application, as a stabilizing factorand as a motivating force without whichmonetary policy alone is ineffective. Weshould utilize and coordinate these over-allinstruments of public policy, not only becauseof their demonstrated effectiveness, but be-cause they are the only logical alternatives toa no longer possible laissez faire, on the onehand, and a regimented, policed economy, offascist character, on the other. There is noreason why we cannot learn to use them moreintelligently in the future than we have in thepast, recognizing always that these and otherfunctional controls are at best supplementalto the main driving force of private enter-prise. There is no reason why democraticprocesses cannot be adapted, and every rea-son why they should be adapted to usingthese instruments of economic influence tothe fullest, not only in the defense periodbut in the future when the economic prob-lems of a world at peace will ironically beeven more difficult to deal with than the eco-nomic problems of a world at war.

NOVEMBER 1941 1103


rtont the Jsoatd 5 6.otte5y2ondenceQuestions of general interest, relating to money and banking, are answered in this section of the BULLETIN.

to I ax flank

QUESTION

Would it not be feasible to impose a Federal taxon the deposit of funds in bank checking accounts?Such a tax, of one or two cents per hundred dollars,could be charged to depositors accounts monthly andremitted by the banks to the Treasury. The virtueof this tax is that it would be relatively inexpensiveto administer, easy to collect and would yield a sub-stantial revenue without delay.

ANSWER

THE tax proposal which you outline hasthe advantage of administrative sim-

plicity, which is of great importance at atime when tax laws are becoming increas-ingly difficult to understand and to admin-ister.

In our opinion, however, your proposal isnot in accord with one of the fundamentalprinciples of taxation in a democracy, namely,that taxes should be imposed in accordancewith ability to pay. Under your proposaldeposit holders would be taxed on the numberof dollars deposited by them. A small busi-ness man, for instance, who earns a moderateincome may have a very active deposit ac-

count which reflects the whole volume of hisbusiness transactions rather than his netprofits. His deposit tax might exceed thatof an individual who is much better off butwhose only deposits consist of salary or divi-dend checks. An equitable tax would bearmore heavily on the latter than on the former.

If the tax is passed on in the form ofincreased prices of the commodities producedor services rendered by the taxpayers, it be-comes similar to a general tax on commodi-ties. Such a tax is undesirable because itbears on everyone in proportion to his con-sumption, a result that is not consistent withthe principle that the well-to-do should con-tribute a larger share of their income thanthose in less comfortable circumstances.

An additional technical consideration isthe probability that some depositors couldeasily evade the tax by making payments incurrency and by means of re-endorsed checkspassing from person to person without beingdeposited.

£xtant to Which. JQcletve Hank* (lan 7lnance £xpenctitut<25QUESTION

To what extent can the Federal Reserve Banksfinance defense expenditures of producers or of theGovernment?

ANSWER

THE Federal Reserve Banks are author-ized to make short-term loans to member

banks, and by furnishing member banks withadditional funds the Reserve Banks can

assist them in financing defense activities.However, at the present time member banksaltogether have several billion dollars of ex-cess reserves, and few of them have occasionto apply to the Reserve Banks for loans.

Under the terms of Section 13 (b) of theFederal Reserve Act Federal Reserve Banksmay make advances with maturities of notmore than five years for the purpose of pro-



From the Board's Correspondence

viding established commercial and industrialbusinesses with working capital. Such ad-vances may be made to or in participationwith member banks and other financing in-stitutions and, in exceptional circumstances,direct to industrial concerns when they areunable to obtain the requisite financial as-sistance from the usual sources on a reason-able basis.

The Federal Reserve Banks are not author-ized to extend credit direct to the Govern-

ment. However, they may buy in the openmarket without regard to maturities directobligations of the Government and obliga-tions of Government agencies fully guaran-teed as to principal and interest by the UnitedStates. Open market purchases of Govern-ment securities by the Federal Reserve Banksare undertaken with the view of influencingthe availability or the cost to member banksof reserve funds and are thus governed bytheir effect on the general credit situation.

Admissions of State Banks to Membership in the FederalReserve System

The following State banks were admittedto membership in the Federal Reserve Sys-tem during the period September 16, 1941, toOctober 15, 1941, inclusive.

District of ColumbiaWashington—The Munsey Trust Company

IndianaBremen—Bremen State BankParker—The Parker Banking Company

MissouriSt. Charles—The Union Savings Bank of St.

CharlesNew York

Rensselaer—Rensselaer County Bank and TrustCompany

Rye—Rye Trust CompanyWilliamson—The State Bank of Williamson

OhioAda—The Liberty Bank

West VirginiaWardensville—The Capon Valley Bank

NOVEMBER 1941 1105


Aiamlrct Sank £atnin$tf Titlt 4/alft of} 1941

TOTAL earnings of member banks werelarger in the first six months of 1941 than

in any half-year period since the bankingholiday, but since expenses also were largerthere was no substantial increase in net cur-rent earnings. As shown in the followingtable, net profits (after recoveries, charge-off s, etc.) totaled more than in any other half-year period since the end of 1936; they wereat an annual rate of 6.9 per cent on totalcapital accounts, as compared with similarannual rates of 5.8 per cent in the first halfof 1940, 7.0 per cent in the first half of 1939,and 5.4 per cent in the first half of 1938.

The amount of interest and discount onloans has increased in each of the past fourhalf-year periods; this is attributable to thelarger volume of loans, as the average rate ofincome on loans has declined slightly. In-terest and dividends on securities have beenrelatively stable since the beginning of 1940,at a somewhat lower level than in previousyears, reflecting lower rates of return.

Losses and depreciation were less than in

any half-year period since the banking holi-day, while recoveries, profits on securitiessold, etc. were less than in any half-yearperiod since 1934 except the second half of1937, when profits on securities sold wererelatively small. Although losses and depre-ciation have exceeded recoveries, profits onsecurities sold, etc. in most of the recentperiods, the margin has narrowed since 1939with the result that a greater proportion ofnet current earnings has been carriedthrough to net profits.

Notwithstanding the increase in net profits,cash dividends declared in the first half ofthe current year were substantially less thanin the previous six months; they were at anannual rate of 8.6 per cent on capital stockand 3.5 per cent on total capital accounts,approximately the same as in the first half of1940.

For detail figures of earnings, expenses,etc., in the first half of 1941 and the secondhalf of 1940, turn to page 1186 of thisBULLETIN.

MEMBER BANK EARNINGS, BY HALF-YEAR PERIODS, JANUARY 1936—JUNE 1941[Amounts in millions of dollars!

Item

Earnings—totalInterest and discount on loansInterest and dividends on securities..Service charges on deposit accounts..All other earnings ...

Expenses—totalSalaries and wagesInterest on time depositsAll other expenses

Net current earnings

Recoveries, profits on securities, sold, etc.Losses and depreciation

Net profits

Cash dividends declared1

Number of off icerNumber of employees

Number of banks2

1936

Firsthalf-year

61725323519110

43017289169

187

253216

224

95

Secondhalf-year

65426025220

122

44218088

174

212

254225

241

103

1937

Firsthalf-year

65226824422118

44918188180

203

158166

195

100

Secondhalf-year

66928523723

124

45319188

174

216

97172

141

101

1938

Firsthalf-year

63126922425113

448187

183

137175

145

99

Secondhalf-year

64427422526

119

44319383

167

201

142222

121

99

1939

Firsthalf-year

63327222327

111

44619082

174

187

191

187

191

104

Secondhalf-year

662288221

28125

44819877

173

214

135193

156

104

Firsthalf-year

64929021429

116

45519575

185

194

143175

162

100

Secondhalf-year

67430521730

122

46620573

188

159180

187

110

1941

Firsthalf-year

68131821532

116

47520471

200

206

129137

198

101

31,825147,823

6,400

31,980149,422

6,376

32,589155,466

6,357

32,728155,139

6,341

33,527154,564

6,338

33,176154,039

6,338

34,386156,710

6,330

34,172158,137

6,362

35,002162,307

6,398

35,369163,783

36,085173,231

6,556

1 Includes interest on capital notes and debentures.2 At end of period.



-@nnual JQepott <yk the HankUntet national J>ettUment5

The Eleventh Annual Report of the Bankfor International Settlements, covering theyear ending March SI, 19hi, was presentedby Mr. Thomas H. McKittrick, President ofthe Bank, at its annual general meeting atBasle on June 9, 194.1. Selections from theReport, with a minimum of textual changes,are given herewith:

EXCHANGE RATES, FOREIGN TRADE,AND PRICE MOVEMENTS

Exchange rates.—The main characteristicof foreign exchange conditions in 1940 wasa further extension of official regulations,generally combined with detailed supervisionof foreign trade. Steps were taken to stopleakages in the existing exchange controls;the remaining markets for "free rates" be-came narrower as foreign payments—com-mercial and others—were forced into officialchannels. Alterations in exchange valueswere the result not so much of market forcesas of deliberate official action, often under-taken in connection with commercial negoti-ations. In the Danubian and Balkan regionsthe lack of uniformity in the quotations ofdifferent currencies, the result of a compli-cated system of premiums and varying pro-visions for surrender of foreign exchange,was largely eliminated. In areas occupied byGermany rates 'of exchange were fixed moreor less in conformity with the official quota-tions previously in force. In the United King-dom and other countries of the British Em-pire the exchange regulations were reinforcedand further agreements concluded with for-eign exchange centres; as a result the quota-tion of free sterling, which in May 1940 hadfallen 20 per cent below the official rate, re-covered in the autumn the ground which hadbeen lost.

NOTE: About one-fourth of the material given in the full Re-port is republished here. The complete Report, available in Eng-lish, includes in addition an Introduction and a Conclusion, chap-ters on "Production and Movements of Gold" and "InternationalCapital Movements", and a chapter recording the current activi-ties of the Bank. In making selections from the other chapters,emphasis has been given to material relating to developments inContinental Europe. The Report also deals broadly with economicand financial developments in the United States, Latin America,and the Far East. For earlier Reports, see BULLETIN for Octo-ber 1940, September 1939, June 1938, etc.

Among developments outside Europe in-terest attaches to the immobilisation in theUnited States of the assets of a number ofEuropean countries which were occupied inthe course of the war or otherwise changedtheir political status. Fear of an extensionof these measures provoked fairly extensivecapital movements: dollars" to "the value ofsome 850 million Swiss francs were, for in-stance, sold by private investors to the SwissNational Bank between the middle of June1940 and the end of March 1941. In LatinAmerican countries export difficulties con-tinue to limit the normal supply of foreign ex-change and have necessitated stricter controlmeasures. In a few instances (Bolivia, Peru,Venezuela) they have led to further deprecia-tion. The exchange position of the Argentine,Brazil, and Mexico has been strengthenedby a considerable influx of money fromabroad, partly refugee funds and partlycapital for new investments, while a num-ber of Latin American countries were as-sisted by credits obtained from the Export-Import Bank and the Exchange Stabiliza-tion Fund in the United States. Finally,in the Far East the continuation of hos-tilities has subjected the exchanges to fur-ther strain: in the autumn of 1940 a strictcontrol was imposed on the exchange ofgoods and the transfer of money betweenthe different countries forming the yen area(Japan, Manchukuo, and North China) ;in December 1940 a new central bank wasestablished in Nanking with its own cur-rency, competing in Shanghai and otherareas with the Chungking yuan (the cur-rency of the Chiang Kai-Chek Govern-ment) ; the latter, after a depreciation of 25per cent in the first four months of 1940, re-mained relatively stable up to the end of theyear. Between the Yokohama Specie Bankand the Bank of Java an agreement, valid forone year but terminable at three monthsnotice, came into force on January 1,1941, un-der which these banks make advances in theirown currency to ensure prompt paymentsto exporters, any balance being settled fromtime to time by payments in U. S. dollars. In

NOVEMBER 1941 1107



several European clearing agreements pro-visions have also been included for advancesby central banks to avoid delay in paymentsthrough the clearings—examples of the in-creased importance of official interventionunder conditions which exclude resort to theordinary sources of banking credit.

The present preponderance of the Reichs-mark in the currency structure of the Euro-pean continent is due to the increased relativeimportance of the German market for thetrade of many countries after the cutting-offof their overseas commercial relations. Inthe area within the German barrier morethan one-half of the foreign trade is withGermany and practically all payments aremade through clearings. Steps have beentaken in Berlin to facilitate transactions bya development towards a multilateral clear-ing system. In this connection the arrange-ments entered into with countries in theDanubian and Balkan regions are of particu-lar interest.

Especially after 1933 the intensification oftrade relations with countries in central andsouth-eastern Europe became an objective ofGerman commercial policy, partly becausethese countries could deliver agricultural aridother primary products in exchange for in-dustrial articles and partly because tradewith these areas could presumably be main-tained even in the event of a war. Since theworld-wide depression made it difficult for theDanubian and Balkan countries to sell theiragricultural products in western Europe,these countries were naturally interested inthe possibilities of exporting at comparativelyremunerative prices to the German market.In their clearing agreements with Germanythe old par rates of exchange were at firstapplied. It was soon found that exports toGermany tended to exceed imports, leavingthe countries from time to time with a creditbalance which in some instances affected therates of the Reichsmark quoted in the freemarket. Since the Danubian and Balkancountries were in need of free "devisen" topay for their imports of overseas raw mate-rials (textiles, colonial products, etc.) andto meet the service of their foreign debts,they allowed premiums on the purchase andsale of free exchange in order to stimulateexports payable in such exchange. In thatway the rates applied to such currencies asdollars, sterling, and Swiss francs did not cor-respond to the rates applied to the Reichs-

mark ; and between the different countries inthe Danubian and Balkan regions a varietyof clearing rates were in force, with crossrates that did not harmonise.

After the war had started in 1939 a seriesof developments set in which affected the ex-change situation. Trade with most of the so-called free-exchange countries became grad-ually more difficult; commodity prices wererising in the Danubian and Balkan regions;the harvest in 1940 was generally a poor oneand, for other reasons also, exports to Ger-many tended to decline. On the other hand,imports from Germany were badly needed;within a short time the clearing balancesbegan to move in favour of Germany. Bynegotiations which were pursued in the latterhalf of 1940 new arrangements affecting theexchange rates were entered into betweenGermany, on the one hand, and Bulgaria,Greece, Hungary, Roumania, and Yugoslaviaindividually, on the other. The valuation ofthe Reichsmark is now at a uniform level inrelation to the gold (or dollar) value of thevarious currencies in the Danubian and Bal-kan regions.

In the areas occupied by Germany measureshave been taken to determine the rate of therespective currencies in relation to the officialquotation of the Reichsmark. In March 1939,when the rate between the Czecho-Slovakcrown and the Reichsmark was fixed at 10koruny = 1 Reichsmark (instead of theprevious quotation of 11.62 koruny = 1Reichsmark), it was decided to allow thecrown to retain the old rates in relation toother foreign currencies (on the basis of11.73 koruny = 1 Reichsmark) in order notto hamper exports from the -Protectorate ofBohemia and Moravia. This meant, for in-stance, that the dollar continued to be quotedat 29.25 koruny, instead of 25 koruny, aswould have been the case if the dollar ratewere calculated via the Reichsmark. Aftereighteen months, however, this disparity wasended upon the abolition of the customsfrontier between Germany and the Protec-torate as from October 1, 1940: in relationto other currencies than the Reichsmark theexchange value of the Protectorate currencywas raised by 17 per cent.

In the territories of Poland which wereincorporated into Germany, as also in theGovernor-Generalship, the rate of conversionbetween the Reichsmark and the zloty wasfixed at 1 Reichsmark = 2 zloty. On April




8, 1940, the "Reichskreditkassen", openedat the time of the occupation to provide meansof payment for the German troops and emer-gency currency and credit facilities, wereclosed and a new Bank of Issue for the Gov-ernor-Generalship with its head office inCracow began operations, the old notes ofthe Bank Polski being exchanged for thenotes of the new bank at par. The officesof the Reichskreditkassen were taken overas branches of the new bank; the Reichs-kreditkassenscheine (the amount of whichdid not exceed 45 million Reichsmark) werewithdrawn and replaced by zloty (or byReichsbank notes in the incorporated terri-tories). German currency is no longer legaltender in the Governor-Generalship, whichis connected with the German monetary sys-tem through a clearing arrangement.

The rates fixed for the territories occupiedby Germany in the spring and summer of1940 may be seen from the following table:

RATE IN NATIONAL CURRENCY FOR 1 REICHSMARK

Country

Norway (crowns)Denmark (crowns)

Holland (florins)

Belgium (belgas)

Luxemburg (Luxemburg frani

France (French francs)

Rates ofMay 9, 1940Berlin T.T.

1.762.070.75

2.39

9.57

17.84

Rates forReiehskredit-kassenscheine

i 1.67i 2.00

0.672 0.75

2.008 2.50

8.00MO.OO

20.00

Rates ofApril 1,1941Berlin T.T.

1.762.070.75

2.50

* 10. 00

20.00

1 Rates first fixed; afterwards the rates were adapted to the officialrates in Berlin.

2 Altered to this rate on July 17, 1940, and slightly readjusted on April23, 1941.

3 Rates altered on July 22, 1940, to the rate of conversion fixed in theGerman-Belgian payments agreement of July 10, 1940.

4 Last rate quoted on March 5, 1941.6 Altered to this rate on July 22, 1940, in accordance with new Belgian

rate.

To provide the German troops with meansof payment the method of issuing Reichsmarknotes called Reichskreditkassenscheine wasagain employed in Norway, Denmark, Hol-land, Belgium, Luxemburg, and France.Reichskreditkassenscheine became the cashof the German troops abroad, and their im-port or use in Germany itself was forbidden.In fact, the employment of Reichskredit-kassenscheine as an ad hoc currency madeit possible to avoid the issue of Reichsmarknotes, which would at least temporarily haveswollen the note circulation of the Reichs-bank. Under a decree of May 3, modifiedby a decree of May 15, 1940, the central

management of the Reichskreditkassen wasauthorised to issue Reichskreditkassenscheinein denominations of 50, 20, 5, 2, and 1 Reichs-mark as well as 50 Reichspf ennige and coinsof 10 and 5 Reichspf ennige against coverchiefly in the form of loans to the Reich, forwhich a maximum of 3 milliard Reichsmarkwas fixed. Total issues do not seem to haveexceeded 1.7 milliard Reichsmark and it wassemi-officially stated in January 1941 thatthe circulation of Reichskreditkassenscheinehad declined by one-half since the autumnof 1940. The issue of coins has not been ofany practical importance.

While Reichskreditkassenscheine were is-sued to the German troops in Norway andDenmark and these notes were given thequality of legal tender, no Reichskreditkassenwere actually opened in these two countriessince in them the credit systems continuedto function with only slight interruption,and early arrangements were made with thecentral banks for Reichskreditkassenscheinealready issued to be exchanged and for theoccupying authorities to be supplied withthe necessary means of payment againstcrediting of Reichsmark to the accounts ofthese countries with the Reichsbank.

In Holland, Belgium, and France Reichs-kreditkassen were opened in May 1940 bythe German authorities, but in each of thesecountries arrangements were soon made toprovide the German troops with the nationalcurrency. In Holland the Reichskreditkassenwere closed by the middle of July, with theexception of the office in Amsterdam, whichwas retained for the task of liquidation andliaison. In Belgium the conditions weremore complicated since in May 1940 the direc-tion of National Bank of Belgium had movedabroad; a new Bank of Issue was established,which came into being on July 15, 1940.Since, however, the direction of the NationalBank at that time returned to Brussels, itwas decided that the new Bank of Issue shouldemploy the administration and the notes ofthe National Bank. The Reichskreditkassenwere maintained as credit institutions for theGerman military administration but the issueof new Reichskreditkassenscheine was on avery limited scale. In France the activityof the Reichskreditkassen was likewise re-stricted upon the conclusion of an agreementwith the Bank of France after the armisticeof June 22, 1940.

In Holland exchange restrictions had been

NOVEMBER 1941 1109



introduced on May 10, 1940, and on June 24,1940, a comprehensive system of exchangecontrol was imposed according to the Germanmodel. Private holdings of gold and foreignexchange were to be offered to the Neder-landsche Bank, which by the end of Novem-ber 1940 had acquired 38 million florins ingold from private hoards. In relation toGermany the exchange restrictions weregradually made less rigid. From November1, 1940, permission was given to transferfreely an amount of 5,000 Reichsmark permonth per person; in the early months of 1941increased capital transfers were permittedbut a special tax of 70 per cent on immediaterepatriations of capital was imposed to checka too voluminous inward movement of funds.Then, from April 1,1941, full freedom of pay-ments was established between Holland andGermany, including the right to bring notesand other means of payment from one countryto the other. The Dutch-German clearingceased to operate as far as payments betweenthe two countries were concerned but re-mained in force with regard to payments be-tween Holland and third countries. The rateof 100 florins = 132.70 Reichsmark was madeapplicable also to notes and coins, which areexchangeable at the offices of the centralbanks and a number of other institutions.The freedom from restrictions extends to thetransfer of capital, but the "blocked marktax" which had been imposed by the DutchGovernment on repatriations of capital in-vestments in Germany was maintained,though with certain alleviations. This tax,which is intended to compensate for the gainaccruing to individual owners from the re-turn of capital invested in Germany and toprevent a sudden and wholesale liquidationof such investments, was fixed at 60 per centfor transfers up to the end of 1941, decliningthereafter.

In Belgium a clearing arrangement of July10, 1940, replaced the previous paymentsagreement between Belgium and Germany.The new Bank of Issue, which acts as pay-ments institution, has obtained from the Bel-gian Ministry of Finance a guarantee to theamount of 1,000 million Belgian francs inorder to be in a position to pay promptlyclearing claims of Belgian exporters to Ger-many.

In France the following rates govern theexchange value of the French franc:

(i) In relation to Germany the rate of 5

Reichsmark = 100 French francs (1 Reich-mark = 20 French francs) was originallyfixed by the occupying authorities as the ratefor the Reichskreditkassenscheine; it wasafterwards maintained in the clearing ar-rangement concluded in the middle of No-vember 1940 between the Reich (includingBohemia and Moravia), on the one hand, andthe occupied and unoccupied parts of Franceas well as the French colonies, protectorates,and mandated territories, on the other.

(ii) After the armistice the agreementsconcluded in September 1939, by which therate of 176.625 French francs = 1 pound ster-ling was to be maintained with sterling,lapsed, but the corresponding rate of 43.80French francs = 1 dollar, was maintained.This dollar rate corresponds to the formerrates of 17.51 French francs for the Reichs-mark and about 10.15 French francs for theSwiss franc.

(iii) In the clearing agreement concludedbetween France and Switzerland on October23, 1940, however, the rate to be applied toall commercial payments was rounded off to10 French francs = 1 Swiss franc. For rea-sons of convenience, this rate was subse-quently adopted by the French ExchangeOffice for all transactions (commercial andnon-commercial) which are made neither indollars nor in Reichsmark nor via the Reichs-mark. These rates correspond theoretically(no arbitrage being possible) to a rate of43.11 French francs for the dollar and 17.25French francs for the Reichsmark.

(iv) In addition, there is a "free rate"quoted outside France (in Zurich at the pres-ent time) for bank transfers on "foreign ac-counts" opened with French banks in thename of persons residing abroad.

(v) Another rate, subject to considerablefluctuation, is quoted for French bank-notes,as in the case of other countries which haveprohibited or limited the reimportation oftheir notes. It is not permissible to takemore than 1,000 French francs into Franceon each journey.

In actual practice the situation is, however,less complicated than might appear from thedifferent rates indicated above. Commercialtransactions take place either against or viathe Reichsmark at the rate of 20 Frenchfrancs = 1 Reichsmark or against the Swissfranc at the rate of 10 French francs = 1Swiss franc (corresponding to 17.25 Frenchfrancs = 1 Reichsmark).




The clearing arrangements entered into bythe Governor-Generalship of Poland, Nor-way, Holland, and Belgium provide for pay-ments through accounts kept at the GermanClearing Institute (Verrechnungskasse) inBerlin; and these provisions apply both to theclearings between these four countries intheir relations with each other and to theclearings between any one of them and othercountries in Europe. In fact the GermanClearing Institute enters as creditor anddebtor in relation to the clearing institutes ofthe countries concerned. The centralisationof the accounts for these four countries makesit possible to arrange more easily for a settle-ment of balances on a multilateral basis. Inpractice permission must be obtained for asurplus balance on one account to be utilisedfor payments on some other account and,generally, the total of the amount which anyone of these countries can utilise, is fixed inadvance for a certain period, usually in con-nection with commercial agreements.

Between other countries in Europe thanthe four just mentioned direct clearings arein force without, as a rule, any provisions forsettlement of balances in relation to thirdcountries. Since, however, Germany holds apredominant position in the trade of the con-tinent of Europe, the accounts with Germanymay afford the possibility of arranging forsettlements between a surplus on one accountand a deficit on another; or Germany may,within limits, allow a surplus in Reichsmarkto be utilised for payments to third countries(as in the German-Bulgarian clearing). Inthe bilateral arrangements which are beingnegotiated increased attention is given to thepossibilities of settlement in relation to thirdparties.

The official rate of the lira, which hadbeen reduced in September 1939 by about 4per cent from 5.2625 to 5.05 dollars = 100lire, has been maintained at the latter rateexcept for a temporary deviation to 5.032 dol-lars in the middle of 1940, but at the endof May 1941 it was raised again to 5.2625 dol-lars. This raising of the lira rate on thedollar was followed by corresponding adjust-ments in the rates of a number of other cur-rencies (including the Reichsmark, the Swissfranc, and the Swedish krona), the resultbeing a greater uniformity in the system ofrates and cross rates in relation to thelira and thus also in the continental exchangerelations generally.

The exchange restrictions which had beenintroduced in Sweden during February 1940were at first designed mainly to control capi-tal movements but, as conditions turnedmore difficult in the spring, they were alsoused as a means of import control. Laterin the year, when the exchange market be-came easier, it was possible somewhat tosoften the restrictions. While in the firstfour months of 1940 the combined hold-ings of gold and foreign exchange of theRiksbank and the commercial banks fell byabout 320 million Swedish kronor (mainlybecause of payments for excess imports), themovement for the remainder of the year wasin the opposite direction, the combined hold-ings rising by about 120 million Swedishkronor. In this latter period from May toDecember 1940 the Riksbank acquired 255million Swedish kronor of foreign exchangewhile the commercial banks reduced theirholdings by 133 million Swedish kronor. Thisreduction, which was most marked in the lateautumn, would seem to have been due" to fearsthat sales of Swedish assets in the UnitedStates would be made subject to licence andpossibly also that the Swedish krona wouldbe raised in value in relation to the dollar.During the year there was, however, verylittle change in the quotations for any of theleading currencies.

The year 1940 in Switzerland was charac-terised by unusually strong movements on theforeign exchange market. During the firstfive and a half months the National Bank, to-gether with the Exchange Equalisation Fund,furnished the market with dollars to anequivalent of nearly 500 million Swiss francs.In the main these dollars were required topay for a heavy excess of imports and to sup-ply the means of payment for future imports,but in part they served to meet withdrawalsof funds owned by foreigners and, as thepolitical situation became more unfavourable,to provide for the acquisition of dollar hold-ings on private account.

In the middle of June, when France openednegotiations with Germany for an armistice,funds suddenly began to return to the Swissmarket and the inward movement continuedalmost without interruption up to the end ofthe year, by which time the National Bankhad added nearly 650 million Swiss francs toits foreign exchange holdings. At first thismovement was due principally to the sale ofdollars by commercial and industrial firms

NOVEMBER 1941 1111



which no longer needed that currency forpayments abroad since imports from overseascountries had been largely cut off. Towardsthe end of the year there was another andmore important reason for the massive re-patriation of funds, viz., the fear that Swissassets in the United States would be placedunder the regime of licences by the AmericanGovernment. In the first quarter of 1941 dol-lar funds still continued to be liquidated, theNational Bapk acquiring the countervalue ofabout 200 million Swiss francs.

When it had to provide dollars for themarket in the spring of 1940, the NationalBank, in agreement with the Federal De-partment for Finance and Customs, askedthe banks on May 10, 1940, to limit theirsupplies of foreign exchange for industryand trade to the amounts needed for pay-ments of imports and foreign services, andin particular to abstain from the sale ofexchange for foreign investments. Thus aninformal arrangement took the place of of-ficial restrictions. When later on in the yearthe National Bank had to acquire largeamounts of dollars, it adopted the policy ofdemanding information as to the origin of theforeign exchange offered to it. The Bank wasnot interested in receiving unstable foreignfunds and it was anxious to prevent blockeddollars from being liquidated through theSwiss market but it accepted all the exchangeresulting from Swiss exports or representingrepatriation of funds in Swiss ownership.Notwithstanding the large increase in the Na-tional Bank's exchange holdings the arrange-ment limiting the outflow of funds was main-tained in order to keep the country's capitalat the service of the Swiss economy.

In the first five and a half months of theyear the dollar rate remained unchanged at4.45% Swiss francs = 1 dollar. In responseto the subsequent inflow of funds the rategradually went to 4.30% Swiss francs, whereit was held from October 1940 to April 1941except for some minor fluctuations in the lasttwo months of 1940. The improvement in thedollar value of the Swiss franc affected thequotations of other currencies also; the ratefixed in the Swiss-German clearing was re-duced in October 1940 from 175.44 to 173.01Swiss francs = 100 Reichsmarks. On theother hand, the National Bank has kept itspurchase price of gold unaltered at 4,869.8Swiss francs per kilogram and has boughtgold at that price from foreign central banks

and whenever the francs paid for the goldwere to be used for settlement of commercialand other operations useful to the country.

Foreign trade.—No statistics have beenpublished regarding the foreign trade of Ger-many since the war began. In a speech madeby a Director of the German Reichsbank andpublished in December 1940 it was, however,explained that at the beginning of the warthere was naturally a sharp decline in theforeign turnover, since more than one-halfof Germany's pre-war imports came fromoverseas countries and from England andFrance. But, thanks to an intensification oftrade with European countries, the volumeof German foreign trade was graduallybrought back to the pre-war level as regardsboth exports and imports. Germany's for-eign trade balance at the beginning of thewar was at first active; later on, heavy Ger-man purchases in all the accessible Europeancountries led to an import surplus, althoughthe German economy was able to maintaina considerable production for export in addi-tion to its work for the armed forces. Inthe latter half of 1940 German imports fromHolland, Belgium, and France rose consider-ably, substantial stocks of raw materialswhich these countries had accumulated beingpartly transferred to Germany. The im-provement in Germany's trade position washelped by the well-maintained foreign tradeof the Protectorate of Bohemia and Moravia,which entered into a customs union withGermany as from October 1, 1940.

Just before the war 65 per cent of Ger-many's exports went to Continental Europe,from which Germany took 55 per cent of herimports. Trade with the U. S. S. R. wasnegligible (V2 per cent of the total turnover).Besides the recovery of the Russian trade in1940, a notable increase occurred in tradewith Italy. Increased coal deliveries to Italyshould be specially mentioned. Of the 12 to13 million tons of coal annually importedinto Italy about 65 per cent was obtained in1937 from Germany (principally by sea viaHamburg) and 16 per cent from the UnitedKingdom. In 1940 British shipments werewholly replaced by deliveries from Germany.

In February 1941 an agreement was con-cluded between Germany and Italy providingfor an exchange of goods to the value of 1milliard Reichsmark annually; at the sametime it was agreed that for the duration ofthe war all deliveries of military importance




should be continued without regard to equili-brium in the balance of payments or the posi-tion of the clearing accounts.

In Italy also, regular publication of foreigntrade returns has been discontinued since thebeginning of the war, but the global figuresfor 1940 have been disclosed. According tothese figures imports increased by some 2.9milliard to 12.9 milliard lire, about 30 percent, this being the highest level reachedsince 1931 (except for the year 1937, whenthe necessity of replenishing stocks after theAbyssinian campaign swelled imports to arecord figure of 13.6 milliard lire). Exportsin 1940 amounted to 9.2 milliard lire, com-pared with 8-5 milliard in the previous year,thus increasing by 9 per cent. In the wholeperiod 1931-40 the highest exports were at-tained in 1931 with a figure of 10 milliardlire, i. e., before the great depression hadmade its full effects felt in Italy. The pas-sive trade balance rose from 1.5 milliard in1939 to 3.7 milliard lire in 1940, which is be-low the previous record of 5.7 milliard in1937. It is officially stated that the deficitin the trade balance was largely due to thepayment of higher prices for imported goodsand to the necessity of accumulating stocks.It is added that in the balance of paymentsthe deficit on merchandise account waslargely offset by certain active items, suchas shipping freights (during the first fivemonths of the year), and by a reduction incertain passive items, such as the service ofItalian foreign loans, the transfer of whichhas been suspended since June 1940.

Although the overseas trade of Italy camepractically to a standstill upon her entry intothe war, the loss thus sustained was partlycounterbalanced by an increase in the trafficwith Continental Europe, particularly withGermany, Switzerland, Sweden, and Spain.During the last seven months of 1940 Ger-many took 41 per cent of Italy's exports,providing some 47 per cent of her imports.

Apart from the obstacles caused by war-fare and blockade, the decline in the trade ofsouth-eastern Europe shown by the trade re-turns for 1940 was due to bad harvests inmost of the countries and also to measurestaken by the governments to retain essentialcommodities for home consumption. In theapproach to the problems of foreign trade agreat change has occurred: while up to theend of August 1939 the aim of the commer-cial policy was to achieve a "favourable trade

balance", the attitude thereafter may be indi-cated by the formula: "imports precede ex-ports". Instead of import restrictions ofvarious kinds, export quotas and exportprohibitions have been imposed and the ac-cumulation of free "devisen" is no longer re-garded as a major objective.

In the early months of 1940 attempts werestill made to import raw materials from over-seas markets. Traffic in the Mediterraneanwas, however, much hampered from the verybeginning of hostilities in Europe; it becameextremely difficult after the entry of Italyinto the war and well-nigh impossible afterthe outbreak of the Italo-Greek war. Amongthe raw materials which threatened to be-come particularly scarce textile fibres wereof the greatest importance, the Danubian andBalkan countries having developed their owntextile industries. A substitute for importedcotton was found to some extent in unex-pectedly large deliveries of "Ersatz-Fiber"from Germany and Italy. Mention shouldalso be made of the increase in the localgrowth of cotton in Bulgaria, Greece, andTurkey.

The authorities in Switzerland no longerpublish details regarding the composition offoreign trade or its distribution among dif-ferent countries, but the global figures ofvalues and quantities of imports and exportsgive some indication of the general ten-dencies. In the development of foreign tradesince the war began it is possible to distin-guish two different phases. From September1939 to the spring of 1940 successful effortswere made to increase imports in order to ac-cumulate stocks, especially of raw materials.Then came a sudden decline in the summer of1940, and, although there was a certain re-covery in the autumn, the quantities then im-ported were only about two-thirds of the nor-mal volume—indicating reduced imports ofraw materials. As a result of the general risein import prices the reduction in the valueof imports by 2 per cent for the year as awhile corresponds to a setback of 30 per centin volume.

The export trade shows a somewhat dif-ferent development. From September 1939to the summer of 1940 there was a certain re-duction in the weight of goods exported(partly because of export prohibitions inSwitzerland and partly because many foreigncountries prohibited the import of Swissproducts of a luxury character), but prices

NOVEMBER 1941 1113



were higher, so that in value exports stillshowed an increase. From the third quarterof 1940 a notable advance occurred in thevolume of exports—an indication of a changein the structure of the export trade. Nor-mally, Swiss exports consist of highly manu-factured products. While in some of theselines exports declined, an important newcategory was added: export of goods for gen-eral consumption, such as cattle and dairyproducts, which are heavier in weight in rela-tion to their value.

In the three Scandinavian countries im-ports were exceptionally high up to the springof 1940, when the extension of the war toNorway and Denmark radically changed theirforeign trade position. Normally about 40per pent of total Swedish exports consistedof timber, wood-pulp, and paper, of whichmore than three-quarters was sold to theBritish and extra-European markets, now nolonger accessible. New trade agreementswere concluded with a number of countriesin Europe as well as with the U. S. S. R.;while in 1936-38 the Continent of Europe ac-counted for 53 per cent of both Swedish im-ports and exports, in the twelve months May1940 to April 1941 it provided 83 per centof the imports and took 91 per cent of theexports.

FOREIGN TRADE OF THE NORTHERN COUNTRIES IN1939 AND 1940

[In millions of national currency units]

Country

Denmark:1939...1940...

Finland:1939...1940...

Norway:1939...1940...

Sweden:1939...1940...

Imports

1,7401,374

7,5735,180

1,366945

2,4991,999

Exports

1,5781,508

7,7102,980

612

1,8891,338

Tradebalance

-162+134

+137-2,200

-559-333

-610-661

In Norway also the volume of imports andexports fell heavily after the events in thespring of 1940, although measures were takento increase German purchases of forestryproducts, fish, and minerals. Denmark, forthe first time since 1914, had an export sur-plus in 1940, due to large exports to Germanynot only from current production but alsofrom the stocks of cattle, pigs, and poultrywhich had to be reduced when feeding stuffs

could no longer be imported from overseascountries. In judging the value of the for-eign trade figures it must be borne in mindthat during 1940 export prices rose by anaverage of 27 per cent and import prices by62 per cent.

The foreign trade of Holland in the firstquarter of 1940 was characterised by a largeimport surplus. No statistics are availablefor the month of April, but in the ten monthsMay 1940 to February 1941 trade was mainlywith Germany.

FOREIGN TRADE OF HOLLAND

[In millions of florins]

Period

Jan -Mar 1940May 1940-Feb. 1941

Total

Ex-ports

217419

Im-ports

408575

Bal-ance

-191-156

With Germany

Ex-ports

32303

Im-ports

77317

Bal-ance

- 4 5+14

Imports from Germany increased from Oc-tober 1940, probably in connection with in-creased supplies of raw materials for Dutchindustries, which early in 1941 received largeGerman orders.

During the first four months of 1940 theimports of the Belgium-Luxemburg Unionamounted to 8,395 million and the exports to5,887 million Belgian francs, leaving an im-port surplus of 2,508 million. The follow-ing table shows the foreign trade with Ger-many up to September 1940.

BELGIUM-LUXEMBURG TRADE WITH GERMANYMAY-OCTOBER 1940

In millions of Belgian francs!

Month

1940—MayJuneJulyAugustSeptember.

Imports

66172159141215

Exports

1,0578

31184136

For the last quarter of the year no figuresof foreign trade have been published, but thecustoms receipts for that quarter indicatethat trade recovered somewhat from the lowlevel of only 10 per cent of normal whichobtained in the summer and early autumn of1940.

Price movements.—In the United Kingdomthe initial advance of prices in the months




immediately following the outbreak of warslowed down in 1940.

PRICE MOVEMENTS IN THE UNITED KINGDOM

[August 1939=100]

Index

Wholesale prices*Retail food prices..Cost of living

Aug. 1939

HI

Dec. 1939

124113112

Dec. 1940

151125126

Mar. 1941

154122127

* Board of Trade Index.

Apart from the impact of the heavy budgetdeficit and price developments on the worldmarkets (where relatively slight increaseshave occurred), the main factors influencingBritish prices of imported commodities havebeen the lowering of the exchange value ofthe pound by 14 per cent in September 1939,higher costs of transport, changes in thesources of supply, and the Government's buy-ing policy. This applies also to purchases ofhome-produced commodities, the prices ofwhich have been influenced by increasedcosts, since rates of wages as well as pricesof materials, equipment, and transport haverisen, while net profits have rather showna tendency to fall. Nominal wage rates roseby 14 per cent between August 1939 and De-cember 1940. Retail food prices, which roseby 25 per cent in the same period, have beenfixed more and more by the Government, insome cases by means of subsidies designedto keep down the advance in the cost of living.

Germany has continued to apply a systemof comprehensive price control by which theincrease in wholesale prices and in the costof living has been kept within narrow limits.

PRICE MOVEMENTS IN GERMANY

[August 1939=100]

Index

Wholesale pricesRetail food prices _. . .Cost of living

Aug. 1939

HI

Dec. 1939

100.598.399.3

Dec. 1940

103.5101.4102 7

Mar. 1941

104.3102.5103.8

The increase in prices has been mainly infinished industrial products (especially tex-tiles, shoes, furniture, and rubber articles),whereas agricultural prices showed prac-tically no change. Strict rationing of the con-sumption of essential commodities and allo-cation of supplies of materials by officialagencies are integral parts of the distributive

system designed to ensure that shortages donot lead to increases in prices.

The price control in Germany, which sincethe beginning of the war has applied alsoto wages, was further extended in 1940. Bydecree of November 6, 1940, it was madecompulsory to reduce prices in cases where,for instance, more efficient technical methodsor a lowering in quality led to a rise in profits.In exceptional cases permission may be givento firms to surrender part of their profits in-stead of lowering prices. In addition to the"price stop" and "wage stop" already inforce, a "profit stop" was thus introduced.

In Italy, by ministerial decree of March 12,1941, the "price stop" instituted in June 1940was prolonged for the duration of the war.Provision was made for prices to remain atthe level prevailing on June 30, 1940, and forthe prolongation of current contracts re-garding remuneration for work, insurance,rents (with certain restrictions), lighting,etc. Although the official publication of priceindexes has not been resumed, it is knownthat a rise in prices of certain commoditieshas taken place, especially as a result of thehigher cost of imports.

PRICE MOVEMENTS IN EUROPE

[August 1939=100]

Country

BulgariaDenmarkFinlandGreeceHungary _.NorwayPortugalSpainSwedenSwitzerlandTurkeyYugoslavia..

Wholesale prices

Dec. 1940

135172

127150145130144153

188

Mar. 1941

135178

131160

152159

* 203

Cost of living

Dec. 1940

119136124123115130111134119117120149

Mar. 1941

121139132

117134114

128120

* 124* 155

* February 1941.

In other continental European countriesfor which price statistics are available, therise in wholesale prices amounted to at least30 per cent from the outbreak of the war toMarch 1941.

The increase was highest in Yugoslavia,where it exceeded 100 per cent; then cameDenmark with more than 75 per cent, Nor-way, and Switzerland with around 60 percent, Sweden with more than 50 per cent,Bulgaria 35 per cent, and Hungary just over30 per cent. The cost of living has risen less

NOVEMBER 1941 1115



Cost of Living in certain countriesIndex figures Jan.-June 1939 = 100

165

B.R.I.M. 1939 1941

steeply—often by only one-half of the rise inwholesale prices.

In general, adjustment to the German pricelevel has been an important factor in pricemovements on the Continent of Europe sincethe outbreak of war. In the years 1929-33prices and wages in Germany were reducedby 35 and 20 per cent respectively, i.e., to agreater extent than in other European coun-tries, but the depreciation of the currenciesof these other countries while the Reichsmarkwas maintained at par made the German pricelevel, when calculated at official rates of ex-change, higher than elsewhere. By the be-ginning of 1939 the resulting divergence ofwholesale prices amounted to fully 30 percent; in relation to France it was even greateron account of the far-reaching depreciationof the French franc in 1938. In order tomaintain equilibrium in her balance of pay-ments notwithstanding the considerable pricediscrepancy, Germany imposed a compre-hensive system of foreign trade control underwhich imports were restricted and subsidies

granted to German exporters to enable themto compete on foreign markets.

The outbreak of the war and the virtualisolation of the Continent of Europe fromthe rest of the world strengthened Germany'strade position within the European area.Germany was able to abolish the export sub-sidies and to attract to herself goods whichhad previously been exported to the BritishIsles or extra-European countries. The re-sult was that Germany's price level becameone of the dominating influences in price de-velopments on the Continent. This has beenthe case especially in relation to the Protec-torate of Bohemia and Moravia and to Hol-land, consequent upon the abolition of ex-change restrictions between them and Ger-many (and for the Protectorate customsduties as well) ; and the same forces havebeen at work also vis-a-vis other countrieson the Continent of Europe. By the increasesin prices and wages which have occurred sincethe outbreak of the war a considerable ad-justment to the German level has no doubtalready been effected, but in some cases dis-crepancies still remain, which, at the pre-vailing rates of exchange, are in no waynegligible.

Apart from influences emanating from theforeign trade position, price movements inthe various countries have been subject toa number of domestic influences, among whichthe increased cost of production of substi-tutes, poor crops in 1940, and higher pricespaid to encourage an extension of farming,as well as the mounting budget deficits, havebeen the most important. Systems of pricecontrol are everywhere in force, and in-creased powers have been given to price con-trollers in 1940. Wage control is still anexception to the rule, but in no country canthe government remain indifferent to im-portant changes in wage rates. It is gen-erally admitted that a rise in the cost ofliving should not be fully compensated by arise in wages; when the higher living costsreflect an increased scarcity of consumptiongoods it is physically impossible to compen-sate everybody; and when indirect taxationis increased part of the purpose is often torestrict the volume of consumers' purchases,while full compensation would mean freedomfrom the particular tax increase. The com-pensation which has in fact been granted towage-earners in different countries has beenlimited in general to about one-half of the




rise in the cost of living, with special allow-ances in favor of larger families. Rationingmakes it possible, as a rule, to ensure a moreequitable distribution of available suppliesthan would be the result of competitive bid-ding in a free market and also to preventshortages from resulting in exaggerated pricerises. It has been the tendency everywhereto rely more upon direct intervention in theprice system through rationing and controlthan upon credit restriction.

GOVERNMENT FINANCE, MONEY AND CAPITALMARKETS, AND THE STOCK EXCHANGES

Government finance, money and capitalmarkets.—Government financing dominatedthe money and capital markets throughoutthe world in 1940, not only in the belligerentcountries but in neutral states and occupiedterritories also. Only in rare instances wereother factors important, as for example thefinancing of clearing claims in Denmark andSlovakia and the repatriation of dollar bal-ances to Switzerland. Budget deficits causedby the war were financed in the first monthsby both Germany and England almost whollyat short-term, but more recently large long-and middle-term loans have been placed, sothat in both cases government borrowing inthe six months to March 1941 was about-half at long- and half at short-term. InItaly considerable conversion and consolida-tion issues have been made to reduce thefloating debt, swollen through the budgetdeficits of recent years. In most other Euro-pean countries budget deficits due to arma-ment expenditure, occupation costs or effortsat reconstruction have been financed largelyat short-term, in some cases through a con-siderable expansion of bank (including cen-tral bank) credit.

The war has not put a stop to the era ofcheap money except in temporary and iso-lated cases. Long-term rates of interest havefallen over the year in the United States andin Germany, England, and some other Euro-pean countries, including territories occupiedby Germany after the campaign in the springand summer of 1940. In Sweden the officialdiscount rate was raised by V2 per cent inMay 1940, this being the only increase ofbank rate in the world during the year (ifthe readjustment of bank rate in the Pro-tectorate of Bohemia and Moravia to theGerman level be omitted) ; eight out of

twenty-one European bank rates were low-ered during 1940, the most important consid-eration in each case being to enable the gov-ernments to borrow at lpwer cost.

In Germany the technique of war financingwas perfected in peacetime and, whereasother countries were forced to improvise newmethods, at least in the first months of thewar, the change in Germany was rather oneof degree and the transition a smooth one.The total revenue of the Reich from taxationand borrowing rose considerably on the out-break of war and at the end of 1940 was morethan double that of the last quarter of 1938.The financial year runs from April to Marchand the following table gives figures for thepast three years.

REICH RECEIPTS FROM TAXATION AND BORROWING

[In millions of Reichsmark]

Quarter

1939 April-JuneJuly-SeptemberOctober-December

1940 January-March _ .

1940 April-June.- _._ ._July-SeptemberOctober-December

1941 January-March . -

Financial years 1938-391939-401940-41

Taxa-tion

5,2216,1796, 3355,840

6, 0677, 3516,9876,816

17, 69123, 57527, 221

Borrow-ing

3, 7385, 0746,1026,159

8,1349,5759,819

10, 309

10, 83821, 07337,837

Total

8, 95911,25312,43711, 999

14, 20116, 92616, 80617,125

28, 52944, 64865, 058

Percent-age of

total fromtaxation

58.354.9,50.948.7

42.743.441.639.8

62. 052.841.8

This table does not show all budgetary re-ceipts although it covers over 90 per cent ofinternal budget revenue. The war contribu-tion of the local authorities to the centralgovernment, due to economies of adminis-tration up to one-half, gave a further 1.25 mil-liard Reichsmark in 1940-41 and, with netreceipts from public enterprises, etc., madeup some 3-4 milliard in addition to the taxrevenue shown in the table.

Of the total budgetary receipts, amountingto, say, 68-69 milliard Reichsmark in 1940-41, less than one-fifth was needed to covercivil expenditure, the balance being devotedto the war effort. Besides this internal budgetrevenue, contributions are received from theoccupied territories in the shape of occupa-tion costs, which for France, for instance,were at the rate of 7,300 million Reichsmarkannually: the returns of the Bank of Franceshow, however, that up to the end of 1940less than half had been effectively utilised.

NOVEMBER 1941 1117



Official estimates of revenue for the financialyear 1941-42 give the income from taxationat 30 milliard, administration receipts at 5milliard and the war contribution of thelocal authorities at 1.4 milliard Reichsmark.The addition of the "Matrikular" contribu-tion of the Protectorate and the occupationcosts from occupied territories raises thetotal current revenue (apart from borrow-ing) above 40 milliard.

Some forms of taxation receipts and cus-toms revenue may be expected to fall off inwartime but other tax income has increasedto take their place. Since the outbreak ofwar a 50 per cent supplement has been addedto income tax and war increases have beenmade to taxes on beer, wines, and tobacco.Official statements have been issued to theeffect that no new taxes and no further in-creases in the rates of present taxation areto be made in 1941 and that no "war loans"are to be publicly offered on the open market.Actually wartime borrowing has been ef-fected "noiselessly" through the intermediaryof banks and other institutions.

The total public debt of the Reich (exclud-ing tax certificates) rose, according to thepublished statements, from 19 milliard Reichs-mark at the end of March 1938 to 34 milliardat the outbreak of war and 86 milliard atthe end of March 1941 (of which 38 milliardReichsmark was at short-term). In the cal-endar year 1938 huge market issues weremade and long-term financing preponderated.Short-term issues, particularly Treasury bills,became more important in 1939, especially ifaccount be taken of the six-month tax cer-tificates (one-half of the total).

Large issues of Treasury bills were madein 1940 but the volume of long- and middle-term loans also grew, so that receipts fromborrowing of 20 milliard Reichsmark in thelast six months of the financial year 1940-41were divided almost equally between long- andshort-term issues. Classified under long-term "market" loans in 1940 are the new is-sues of 4 per cent Treasury certificates, theearlier tranches of which were of only 5years' while later tranches were up to 20years' maturity. A remarkable feature ofthe year was the large amounts invested ingovernment bonds by savings banks, insur-ance companies, and similar institutions (theso-called "liquidity loans") reflecting theaccumulation of small savings. Deposits insavings banks alone passed the level of 33 mil-

liard Reichsmark in 1940 against only 22milliard in the middle of 1939, 2 milliard ofthe increase being due to the inclusion ofOstmark and Sudeten banks in the 1940 fig-ures. A further feature was the small amounttaken by direct advances from the Reichs-bank (included in the Bank's return under"Sundry assets", which also comprise the di-rect advances to the Reichspost and Reichs-bahn).

GERMAN REICHSBANK RETURN


End of quarter

1939 December.

1940 MarchJuneSeptember.December.

1941 March

Assets

Billsand

cheques

11,392

12, 24212,61113, 20615,419

15,367

Securi-ties

1,197

537597472

385

Sundryassets

2,033

1,8221,8631,7971,726

1,246

Liabilities

Notecircula-

tion

11, 798

12,17612, 78512,84714, 033

14,188

De-posits,

etc.

2,018

1,7601,8541,7952,561

2,127

Actually the "working credit" of the gov-ernment was reduced on balance during 1940by 205 million Reichsmark to 580 million,while the item "securities" fell as Governmentbonds were sold on the stock exchange. Onthe other hand, the volume of "bills andcheques," mostly Treasury bills and thusrepresenting indirect Government borrowing,rose by 4 milliard Reichsmark on the year.The rise of the note circulation in 1940 islargely accounted for by the territorial ex-pansion and by the slower circulation ofmoney and the maintenance of higher cashreserves. Treasury bills issued by the Gov-ernment during the year 1940 amounted to17.4 milliard (raising the total in circulationto 30.7 milliard). Some 13.4 milliard Treas-ury bills were thus placed outside the Reichs-bank, mostly with the other banks, which ex-perienced a remarkable increase of depositsduring 1940 parallel to the rise of Treasurybills and securities.

Besides the acquisition of Treasury bills,an important factor during the year was theextension of the banks' business to incor-porated and occupied territories. Depositswith the five Berlin Grossbanken grew byone-third in 1940 and with the four specialbanks by over one-half. It has been esti-mated that the deposits with all reportingbanks at the end of 1940 were about 33-35




GERMAN BANKS' BALANCE-SHEET ITEMS


End of year

A. Five big 1938,._.Berlin Banks 1939....

1940....

B. Four special 1938Banks 1939....

1940....

C. Total nine 1938....Banks 1939.. _.

1940.. .

Assets

Billsand

cheques

2,2432,1372,282

1,471985

1,504

3, 7143,1223,786

Treas-urybills

1,2292,5633,793

3,0714,701

1,9785,6348,494

Securi-ties

768

532455

1,300943

2,128

Ad-vances

3,2233,4162,715

416475640

3,6393, 8913, 355

Liabilities

De-positsetc.

7,6278,803

11, 699

3,2965,1037,846

10, 92313,90619, 545

milliard Reichsmark against 21 milliard inJuly 1939, when the last monthly return waspublished, an increase of 12-14 milliard,mostly against Treasury bills. In the sameperiod the total Treasury-bill issue rose by23 milliard Reichsmark, of which about 7milliard was placed with the Reichsbank and16 milliard with banks and other market in-stitutions. Significant as a sign of theliquidity of the economy as a whole and ofthe change of structure of the banks is thefall of advances in 1940.

Each of the three big Berlin banks with anetwork of branches throughout the coun-try increased its capital during the year tokeep pace with the increase of total liabili-ties. The capital and reserves of all Germanreporting banks amounted to 2.5 milliardReichsmark with 21 milliard deposits in July1939 against 4.5 milliard with 11.5 milliarddeposits in 1913. The problem of raising capi-tal resources when profits are tending to fallwith the narrowing margin of interest ratesis similar to that in the United States—and,as in that country, emphasises the importanceof building up reserves. In both cases thesolvency of the banks and the protection ofdepositors are assured rather by the highlevel of the banks' first-class liquid assetsthan by the volume of nominal capital.

The Reichsbank reduced its discount rateto zy% per cent on April 9, 1940, from 4 percent, at which it had stood since September1932. The extent of the reduction of inter-est rates in Germany since the beginning ofthe war may be seen from the following table.

The liquidity of the economy is reflectedalso in the long-term market. Perhaps themost striking illustration of this is found inthe terms of issue of Treasury certificates;

GERMAN MARKET RATES

[In percentages]

Issue

Share yields"Liquidity loans" and longer-term Treasury

certificates. . _ . .17-18 months' Treasury bills"Block bills" of 360 days . . _6-7 months'Treasury billsPrivate discount rate

At out-breakof war

5.20

4.50i 3.75

3.562 3.25

2.75

Begin-ning of

1941

3.80

3.503.002.752.502.25

Re-duc-tion

1.40

1.000.750.810.750.50

1 12-13 months' bills.2 4-5 months' bills.

the first issue at 99 of 4 per cents (for fiveyears) in March 1940 gave a yield of 4.33per cent, while early in January 1941 it waspossible to make a 31/2 P^r cent issue (for 15years) at 98% with a yield of 3.63 per cent.

The Reichsbank increased its holding ofsecurities by 100 million Reichsmark betweenMarch 7 and the end of April 1940 but wasable to sell in later months, and by the end ofthe year its total holding was very low (under390 million).

The most important event from a financialpoint of view in the Protectorate of Bohemiaand Moravia was the customs and monetary"Anschluss" with Germany on October 1,1940, by which the Protectorate came withinthe German system of customs and foreignexchange restrictions. During the year themarket was under the influence of increasingliquidity due chiefly to the surplus of exports,for the most part to the Reich (while clear-ings with other countries were also madethrough Berlin in Reichsmark). The easyconditions are illustrated in the NationalBank's return by the almost complete disap-pearance of internal credit business at theend of the year, the rise of "other sight lia-bilities" and the increased circulation of"Bons de caisse", issued since the second halfof 1938 to mop up surplus funds on the mar-ket.

In order to fall into line with the Reichs-bank, the National Bank's official rate ofdiscount was raised from 3 to %y% per centon October 1, 1940, while other rates in thecountry were similarly adjusted. Duringthe year the regulations governing the Na-tional Bank were modified to exclude fromthe primary cover provisions those Protec-torate notes issued against German currencyand other claims in Reichsmark, includingReich Treasury bills and certificates which

NOVEMBER 1941 1119



NATIONAL BANK OF BOHEMIA AND MORAVIA

[In millions of koruny]

End of month

1938 December1939 December1940 September

December1941 March

Assets

Goldand for-eign ex-change

3,9422,4022,4942,2322,234

In-ternalcredit

3,5501,896

71024

250

"Sun-dry

assets','

1,045*3,7915,3457,8168,444

Liabilities

Notecircu-lation

6,9506,3455,9766,4537,007

Othersight

liabili-ties

6561,054

9691, 5602, 051

"Bonsde

caisse"

395525931

1.0021,320

* 2,831 million koruny of this amount are shown in the balance sheetto be claims on Germany on account of Reichsmark note and coin hold-ings (636 million) or other floating assets (2,195 million).

the Bank was also authorised to discount orpurchase.

The Italian budget has shown a deficit sincethe year ending June 30,1931 (financial year1930-31), but it was only from the time ofthe Abyssinian campaign (beginning October1935) that "exceptional", military expendi-ture took a prominent part in the budgetoutlay. Recent closed budget figures havebeen as follows:

ITALIAN BUDGET ACCOUNTS

[In billions of lire]

Year

Four years' average1930-31 to 1933-341934-351935-36..1936-37 . .1937-381938-39 .1939-401940-41 2

Rev-enue

19.018.820.424.727.527.632.431.0

Totalexpendi-

ture

22.620.833.140.938.639.960.496.0

Deficit

3.62.0

12.716.211.212.328.065.0

"Excep-tional"

expendi-ture l

1.011.117.59.06.5

21.9

1 Included in total expenditure (column two).2 Estimates of the Ministry of Finance.

Expenditure rose, prior to the present war,for a number of reasons, of which the mostimportant were the costs of the Abyssiniancampaign, the empire development schemes,the Spanish war, the union with Albania, andthe policy of autarky and rearmament. Inspite of a 50 per cent increase of revenueover the five years from 1934-35, the heavy"exceptional" expenditure in the year 1939-40(which includes the first three weeks of activewarfare) raised the deficit to a record figure.Expenditure for the financial year 1940-41was estimated at 96 milliard lire and thedeficit at 65 milliard, say 5% milliard a

month. The extent of the Italian effort maybe realised by comparison of these figureswith the national income, which was esti-mated for 1939 at 125 milliard lire.

The aggregate deficit of 82 milliard lire inthe six financial years 1934-35 to 1939-40has been covered by borrowing at long- andmiddle-term and at short-term in about equalproportions. The floating debt expanded inthe six years by about 40 milliard lire, ofwhich some 8-9 milliard was on account ofthe current advances of the Cassa Depositi ePrestiti and of other official institutions, 16-17milliard lire was issued as one-year Treasurybills and the remainder, say 15 milliard, wascovered by other Treasury resources and theextension of central bank credit. No de-tailed statistics of the public debt have beenpublished since June 1935, when the totalinternal debt was 105 milliard lire, of which12 milliard was floating debt. At the end ofJune 1940, the total debt was estimated atabout 170 milliard, of which 40-45 milliardwould be at short term.

The note circulation, which fell from 18milliard lire at the time of the stabilisationof the currency in 1927 to under 13 milliardin the middle of 1935 (before the Abyssiniancampaign), rose above 24 milliard by the endof 1939. In the two years up to the end of1939, 8 milliard lire was advanced by the Bankof Italy direct to the Government, there beinga corresponding increase of the Bank's totalsight liabilities. In the first nine months ofwar about ten per cent of the total borrowingof 50 milliard lire (three-quarters of the esti-mated deficit of 65 milliard) was from thecentral bank. On this basis the note circu-lation in March 1941 was estimated at aminimum of 30 milliard (the advances to theGovernment being some 15 milliard).

In the countries occupied by Germany afterthe campaign in the spring and early sum-mer of 1940 certain similarities in the lineof development may be traced. Emergencygovernment financing (generally involvingdrawing on the central bank) to cover thesuddenly increased outlay, partial moratoria,restrictions on the withdrawal of bank de-posits, and closing of stock exchanges werefollowed by the use of German means of pay-ment (Reichskreditkassenscheine) by the ad-vancing German troops. With the occupationcompleted, German commissioners were ap-pointed to the central banks and the Kassen-scheine were kept in use until arrangements




had been made for payments in local cur-rencies by the German authorities; the bankswere fully opened, moratoria were lifted andthe stock exchanges gradually resumed ac-tivity. The local currencies were closed tooutside influences by exchange restrictionsand rates were fixed with the Reichsmark aswell as with other currencies. Taxes beganto flow in again and government financingbecame more normal but generally some cen-tral-bank credit continued to finance the clear-ings with Germany and to cover occupationcosts; thus note circulations and commercialbanks' cash reserves rose, bank deposits ex-panded, the markets increased in liquidity,and interest rates fell.

Denmark and Norway were occupied byGermany in April, Belgium and Holland inMay, and the north and west of France inJune 1940. The principal causes for thechanges in the credit situation in Denmarksince April 1940 are best shown by a tablegiving the main alterations in the return ofthe central bank.

DAN MARKS NATIONALBANK RETURN

[In millions of kroner]

Item

Assets Clearing assets _ . . _ .Sundry debtorsAll other assets J .

Total of balance sheet.

Liabilities Note circulation .Sight deposits 2 . . .All other liabilities

March1940

47818

865

60975

181

March1941

498561414

1,473

707554212

Changeon year

+498+514-404

+608

+98+479+31

1 Including the gold reserves and internal credit items.2 Including current accounts.

Danish exporters through the clearing arepaid directly and the foreign claims takenover by the National Bank. A large surplusof exports of agricultural products to Ger-many has led to a piling-up of clearing claimsagainst which imports have not been made.In March 1941 there were net foreign ex-change and clearing assets of 513 millionkroner against all countries, compared witha net debt of 36 million a year before. Theitem "Sundry debtors," which includes theclaims on the Reichskreditkassen for Kassen-scheine redeemed by the National Bank andalso the financing of the occupation costs, hasgrown in a similar measure. Together thetwo items have risen by over 1,000 millionkroner during the year to March 1941. Of

the 1,000 million new central-bank creditthus created, 400 million has been utilisedto repay credit previously granted, 100 mil-lion has gone into circulation and nearly 500million has piled up on sight account at theNational Bank. The liquidity indicated byhigher cash holdings and the repayment ofdebts is also reflected in the returns of theprivate banks.

In May 1940 the Government created a 100million kroner fund to guarantee, up to 50per cent, advances made by the banks for thefinancing of industrial enterprises, but totaladvances nevertheless continue to fall. Withdeposits and cash rising and credit being re-paid, the banks have employed part of theirincreased resources in the bond market (tak-ing up securities sold by the National Bankto curb the expansion of its assets). Overthe year bond prices have risen by 10 percent and the National Bank has twice reducedits discount rate, from 5*/̂ to 4X/% per cent inMay and to 4 per cent in October 1940 (whileparallel reductions have been made by thecommercial banks on deposits and credititems). It is noteworthy that savings-bankdeposits have not recovered. For the wholeyear 1940 they remained below the level of1939. Some small loans have been issued bythe Government but insufficient to put a checkto the expansion of central-bank credit.

The situation in Norway is more difficultto illustrate owing to the absence of the cen-tral-bank return, the last to be publishedbeing that of March 30, 1940. This returnshowed the increase of tension, the note cir-culation having risen to 600 million kronercompared with 480 million, the average for1939. This tension grew in April, there beinga run on bank deposits met by an increase ofrediscounting at the central bank. FromApril 16 a moratorium was declared untilMay 9. In that month a change took place:the Oslo bank's discount rate was reduced onMay 11 from 4 ^ to 3 per cent, with parallelreductions in the interest rates of the com-mercial and savings banks. The easing ofthe situation was due to the relaxation oftension with the ending of the campaign andto the further extension of central-bankcredit to the Government. The note circula-tion continued to rise and was estimated atabout 1,000 million kroner at the end of theyear, while the published returns of the com-mercial banks show a swelling of their cashresources.

NOVEMBER 1941 1121



NORWEGIAN COMMERCIAL AND SAVINGS BANKS

(Aggregate Figures)[In millions of kroner]

End of month

1938 December..1939 December __1940 March

December..1941 March

Deposits

Sight*

146157209554667

Other

2,8342,7402,7682,6362,719

Total

2,9802,8972,9773,1903,386

Loans

1,6801,8251,8711,5791,475

Se-curi-ties

1,021922915

1,0011,063

Cashre-

serves2

1008171

441668

Re-dis-

counts i

119471

1 Commercial banks only.2 Including balances at central bank.

The strain up to April 1940 and the com-plete change-over since the occupation areillustrated by the reduction of rediscountsand the huge increase of the banks' cashreserves. This increase of bank cash, accom-panied by the repayment of loans and a risein sight deposits at the commercial banks,must originate in the creation of central-bank credit, directly or indirectly, for accountof the Government. "Other deposits", whichmore directly reflect changes in genuine sav-ings, have on the contrary fallen.

The costs of mobilisation and other extra-ordinary expenditure in Holland caused anexpansion of the floating debt (to the Neder-landsche Bank and the market) to its highestpoint of 630 million florins early in March1940. In February a 300 million 4 per cent40-year loan was issued and in March 132million was received as the Government'sshare in the book profits on revaluation ofthe gold reserve. Thus, in April the floatingdebt to the market was reduced below 400million florins; the Government was out ofdebt to the Nederlandsche Bank and, in fact,had a credit balance in account.

Hostilities with Germany commenced onMay 10, whereupon restrictions on the with-drawal of bank deposits were imposed. Thecampaign was short and the NederlandscheBank published its weekly returns as usual,except that of May 13,1940. The last returnbefore the conflict showed no particular signsof tension: a comparison of this with laterreturns is given below.

In the two weeks to May 20, 1940, the callon the central bank was considerable; theGovernment drew 38 million florins (with-drawing its deposit and taking a loan) andprivate customers (mostly the banks) 111million (from deposits and credit granted),while 102 million went into circulation as

NEDERLANDSCHE BANK RETURN

[In millions of florins]

Item

Assets:Sundry accounts . . _Foreign billsLoan to the Government 1

Total (three items)Gold 2 . .Domestic credit3.Other assets

Total of balance sheet.

Liabilities:Notes . . . .Private accountsOther liabilities

1940

May6

21

(-23)

(-2)1,160

22865

1,474

1,15923260

May20

211

15

371,115

30260

1,514

1,26119361

EndDec.

12315

261

3991,102

21171

1.783

1,552175

57

1941

EndMar.

21223

175

4101,096

22171

1,798

1,59314460

1 Net, i. e. direct advances plus Treasury bills placed with the Bankless credit on current account.

2 Mostly abroad.3 Excluding credit to Government.

notes. The tension soon abated, privatecredit was repaid and on June 11 the restric-tions on the withdrawal of bank deposits(which had already been relaxed on May 23)were completely lifted.

Since the occupation, however, the mone-tary situation has been dominated by the ex-cess of official financing over receipts, re-flected in the considerable rise of three assetitems in the balance sheet of the Neder-landsche Bank (shown at the top of thetable). From May 20 to the end of Decem-ber 1940 the aggregate increase of 362 mil-lion florins has its counterpart in a rise of291 million in the note circulation and a netrepayment of 73 million private domesticcredit. The two items "Sundry accounts"and "Foreign bills" consist largely of theReichsmark claims of the NederlandscheBank. Besides financing the clearing balanceand the occupation costs, the Government hasother extraordinary expenditure for war-damage compensation and unemploymentrelief, financed by short-term borrowing onTreasury bills and from the NederlandscheBank, as reflected in the item "Loan to theGovernment" in the table. In Holland, unlikeDenmark and Norway, the extension of cen-tral-bank credit has led to an almost parallelexpansion of the note circulation.

Besides borrowing from the central bank,the Government has placed a large volumeof Treasury bills on the market. These havebeen largely taken up by the banks, whoseholdings have increased. Withdrawals of




deposits from the banks in the first monthsof the year were met by a reduction of theTreasury-bill holding, in May below 150 mil-lion florins. From May 1940 to March 1941deposits have risen by over 50 per cent whileprivate credit has been repaid and the Treas-ury-bill portfolio, having increased to morethan three times its earlier volume, amountsto more than two-thirds of total deposits.

In January 1941 a comprehensive tax re-form was undertaken and it is estimated thatrevenue from this source may be increased by50 per cent from the 800 million florins in1940 to, say, 1,200 million in 1941. Govern-ment expenditure, however, is estimated, onthe basis of recent borrowing, to be runningat some 1,500-1,700 million florins a yearabove ordinary revenue. Ordinary expendi-ture is estimated at 900-1,000 million florins ayear, public works and reconstruction at 200million, and the costs of occupation and ex-penditure for the German civil administrationat 1,200 million. In addition, certain Germanorders to Dutch industry necessitate interimfinancing by the Dutch Treasury. In Jan-uary 1941 a 500 million 4 per cent ten-yearloan was issued at par for the consolidationof the floating debt.

The discount rate of the NederlandscheBank has remained unchanged at 3 per centsince August 29, 1939, in spite of the extremepressure (and bank moratorium) in thespring of 1940 and the comparative ease ofthe market at the end of the year.

The outbreak of the European war in Sep-tember 1939 came as a shock to the moneyand capital markets in Belgium, weakenedearlier in the year by an exchange crisis inthe spring and bank failures in the autumn(following the Mendelssohn crash in Amster-dam) : the 4 per cent unified rente fell fromaround 85 in August to under 70 in Novem-ber 1939. In the first months of 1940 therewere signs of returning confidence—the uni-fied rente rose to 80, and from January toMarch over 2,000 million Belgian francs ofthe Government floating debt was taken up bythe market (thus relieving the NationalBank).

Hostilities between Belgium and Germanycommenced on May 10, 1940, whereupon thenotes of the National Bank were made incon-vertible and a credit of 5 milliard Belgianfrancs was opened for the Government. Thecommercial banks borrowed freely from theNational Bank, to meet customers' require-

ments and to constitute cash reserves, butit was necessary to decree a partial restric-tion on the withdrawal of bank deposits (ason postal cheque accounts) from May 13 andto postpone bill protests, etc. The armisticecame into force on May 28. On June 27 thenew Bank of Issue in Brussels was foundedwith a capital of 150 million Belgian francs(20 per cent paid up) subscribed by the Bel-gian commercial banks, but on July 7 thedirection of the National Bank returned fromabroad, where it had temporarily beenoperating, and in August the partial bankmoratorium was lifted.

The weekly return of the National Bankwas suspended from May 8 to December 26,1940, inclusive, the Bank of Issue publishedno statistics before its balance sheet of De-cember 31, 1940, and the circulation ofReichskreditkassenscheine was undisclosed.The National Bank has, however, publishedhalf-yearly balance sheets for June 25 andDecember 25, 1940 (and weekly returns fromJanuary 2, 1941, are available for both theNational Bank and the Bank of Issue). Thefollowing table summarises and combines thestatistics of the National Bank and the Bankof Issue:

BELGIUM—COMBINED SITUATION OF NATIONAL BANKAND BANK OF ISSUE *

[In billions of Belgian francs]

Year andmonth

1939 December .1940 June

December -1941 March

Assets

Gold*For-eignex-

change 2

21.121.621.721.7

0.33.85.6

GovernmentDebt

Short-term

3.75.99.4

10.7

Long-term

0.90.91.31.2

Creditto

privateecon-omy

2.24.71.30.7

Liabilities

Notecircu-lation

27.933.534.837.9

Cur-rentac-

counts

1.01.42.62.1

* Government debt statistics on last day of month. Other figures fromNational Bank balance sheets on 25th of month up to June 1940; forDecember 1940 and March 1941 the combined returns of the NationalBank and Bank of Issue for January 2 and March 27, 1941.

1 Including the so-called "valeurs-or" etc. On June 25, 1940, only155,000 Belgian francs and on December 25,1940, 8,190,000 Belgian francsof the total gold holding was in Belgium, the remainder being heldabroad.

2 Including for December 1940 and March 1941 two new items "Creditsin foreign exchange" and "Foreign money and notes" and also theaccounts of the Reichskreditkassen.

May and June 1940 were the criticalmonths and "credit to the private economy"probably reached its highest point about theend of June. In round figures, the huge in-crease of 5.6 milliard Belgian francs in the

NOVEMBER 1941 1123



note circulation in the first half of 1940 wasdue principally to 2.2 milliard direct Govern-ment borrowing and 2.6 milliard other de-mands for credit (mostly by the banks). Inthe following months the tension was relaxedbut in the second six months of 1940 as awhole there was a net rise of over 1 milliardBelgian francs in the note issue, accompaniedby a further expansion of Government bor-rowing from the National Bank by some 4milliard, while the "foreign exchange" hold-ing of the two banks rose by 3.5 milliard.On January 2, 1941, this item combines 956million "foreign credits", 1,915 million "for-eign notes and coin" and 1,015 million on thetwo accounts of the Reichskreditkassen: thebalance sheet of the Bank of Issue indicatesthat the foreign claims were predominantlyin Reichsmark (and doubtless represent, toa large extent, the withdrawal of Reichskre-ditkassenscheine and the accumulation ofclearing claims). At the end of August 1940the Ministry of Finance gave a guarantee of1 milliard Belgian francs to the Bank of Issueto cover possible losses due to the Bank's pay-ing out amounts owing to Belgian exportersbut remaining untransferred in Reichsmarkon the clearing account in Berlin. In thefirst three months of 1941 the expansion ofthe note issue was accelerated, rising by 3.1milliard Belgian francs compared with 6.9milliard during the whole year 1940.

The extension of official credit producedconsiderable liquidity in the economy of thecountry, and central-bank credit to the pri-vate economy declined rapidly from June1940 to a very low level in 1941, while thecommercial banks replenished their cash re-serves. These conditions are also reflectedin the returns of these banks.

Deposits, after an increase at the beginningof the year, declined to their lowest at theend of June. The run on deposits was metand a high reserve of cash constituted by re-discounting bills (the bill holding falling by1.5 milliard Belgian francs, i. e. 40 per cent,in the three months) and by further borrow-ing of 2.5 milliard from official sources. Thesituation had entirely changed by September,and from June 1940 to March 1941 depositsexpanded by nearly 6 milliard Belgian francs,parallel to the Treasury-bill holding includedin the bill portfolio. The discounting of com-mercial bills doubtless declined and advancesto the public have been reduced from the ex-panded figures of June 1940. In the second

half of 1940, there was also an appreciableincrease in the volume of postal cheque ac-counts (about 800 million) but savings-bankdeposits have tended to decline (by slightlyover 1 milliard on the year).

Although conditions on the market changedfundamentally during the year, the NationalBank maintained its discount rate unalteredat 2 per cent from January 25, 1940 (whenit was reduced by V2 Pe^ cent). Out of thetotal borrowings of 12.7 milliard Belgianfrancs during the year 11.3 milliard were atshort-term (of which 5.7 milliard were placeddirectly with the National Bank). Taxationreceipts, which fell heavily in the second andthird quarters of the year but recovered tothe normal figures in the fourth quarter, pro-vided 40 per cent of the Government's incomefor the year as a whole. Estimates of budgetexpenditure have been raised from the 13.8milliard Belgian francs in 1940 (which wasin fact greatly exceeded) to 16.2 milliard in1941 (excluding occupation costs).

The year 1940 in France may be roughlydivided into three periods, the first extendingto early May, the second to about the end ofJuly and the third comprising the last fivemonths of the year. These periods may beillustrated by the figures in the followingtable:

BANK OF FRANCE RETURN

[In billions of French francs]

Item

GoldPrivate credit 2Public credit—

Old advances"War" advances 3Occupation costs._

Note circulation ._Current accounts-

Treasury 4

Private5 -_.Reichskreditkassen - _

1939

Dec.28

9717

3014

151

215

1940

May9

8519

1022

159

114

June10

8529

1036

174

125

EndJuly i

8529

1058

197

131

Dec.26

8517

106472

218

12541

1 August 1.2 Bills discounted, 30-day and other advances and bills purchased

on the market.3 Authorised by the decree of September 1, 1939, and by the Con-

ventions of February 29 and June 9, 1940.4 Treasury and the Caisse Autonome d'Amortissement.s Including other sight liabilities.

The first period was one of comparativecalm. The expansion of 8 milliard Frenchfrancs in the note circulation was due to theincrease in "war" advances to the state. Bythe revaluation of the gold holding in Feb-




ruary 1940, at the rate which had actuallybeen in force since September 1939, it waspossible, on the one hand, to wipe out 20 mil-liard French francs of the pre-war advancesand, on the other, to transfer 30 milliard ofgold to the Exchange Stabilisation Fund, toserve for war purchases abroad. Hence thereduction of "old advances" by 20 milliardand the net decline of 12 millard in the goldholding.

The second period covers the phase ofactive campaigning and the disturbed periodduring the summer. In the month to June 10there was an expansion of 10 milliard Frenchfrancs in private credit and 14 milliard forthe Government, accompanied by an increaseof 15 milliard in the note circulation. Noweekly return was published from June 10but weekly figures from August 1 have beengiven in the Bank's annual report and moredetailed explanations have been added by theMinister of Finance and the Governor of theBank of France. At the General Meeting ofthe Bank in March 1941 the latter said thatthe bill portfolio, 6 milliard French francson May 9, reached its highest point of about18 milliard in the first days of July and thatthe total expansion of private credit in a fewweeks amounted to 14 milliard. The Bank ofFrance made every effort to avoid a generalmoratorium. The banks were helped by asystem of overdrafts against the deposit ofTreasury bills (to eliminate continuous han-dling of securities) while commercial billswere discounted even if they carried the sig-nature of debtors resident in occupied terri-tory. To permit the Treasury to cover its im-mediate needs while tax collections were prac-tically interrupted, the Treasury concludedan agreement with the Bank of France onJune 9,1940, by which the maximum of "war"advances was raised to 70 milliard Frenchfrancs. This maximum was never exceededdespite heavy drawings in June and July.The effect of the demand on the Bank's creditwas a rise in the note circulation to 198 mil-liard early in August (an increase of nearly40 milliard, some 25 per cent in threemonths).

The third period was characterised by ef-forts to put the internal financial positionand the banking system in order and also bythe appearance of a new factor: the paymentof the costs of occupation fixed at 400 millionFrench francs a day from June 25.

Once the local financial administration

could take up its work, collection of taxesbegan again. Deposits returned to the postalcheque accounts and the sayings banks, andthe net issues of Treasury bills rose to an av-erage of 6 milliard French francs per month.Despite large exceptional expenditure theresort of the Treasury to the Bank of Franceto meet internal needs slowed down andlater on ceased. At the same time the ex-ceptional advances by the Bank to the marketbegan to be reimbursed from the month ofAugust, but at that time the first paymentsof occupation costs had to be met and theseries of agreements between the Bank ofFrance and the Treasury gave the latterspecial advances for that purpose. The firstof these agreements was signed on August 25and the amount of 27.2 milliard Frenchfrancs, representing the amount of occupa-tion costs for the period since June 25, wasdebited to the account of new advances "foroccupation costs" and a similar sum cred-ited to the current account of the Reichs-kreditkassen. Altogether this account hadbeen credited with 77,144 million Frenchfrancs by the end of the year, 72,317 millionbeing debited to the special advances accountand the balance temporarily to the Govern-ment's "war" advances account. Of the total77 milliard odd, 41,400 million French francs(54 per cent) remained unspent on the ac-count of the Reichskreditkassen at the endof the year; 24 milliard had been drawn tocover various payments while 12 milliardwas utilised to redeem Reichskreditkassen-scheine previously issued by the occupying au-thorities (the amount remaining in circula-tion in France being unknown).

Central bank credit granted to the privateeconomy of the country decreased in thesecond half of the year to a figure slightlyless than at the end of 1939, owing partly tothe liquidity of the market and partly to thelow level of business activity. As a conse-quence, the rise in the note circulation sloweddown. After having reached nearly 40 mil-liard French francs in May, June, and July,the increase rather exceeded 20 milliard dur-ing the last five months of the year and, ac-cording to a statement by the Minister ofFinance, it was only 11 milliard during thefirst four months of 1941, bringing the notecirculation to 232 milliard French francs atthe end of April.

With the armistice the great part of themilitary expenditure ceased: nevertheless,

NOVEMBER 1941 1125



besides ordinary administrative expenses anddebt service, there was considerable emer-gency expenditure on immediate reconstruc-tion (bridges, etc.), on behalf of refugeesand other relief in the face of the drying-upof ordinary income (although no tax returnswere published, taxation revenue doubtlessfell off in the spring and summer as in Bel-gium and Holland). The budget deficit,which towards the end of 1940 was estimatedat about 5 milliard French francs a month,was largely met by the issue of Treasury bills,which explains the cessation of the Treasury'sresort to the Bank of France except for pay-ment of the occupation costs.

For 1941 a budget has been establishedwhich does not comprise the occupation costs(146 milliard French francs covered solely bythe Treasury) nor the expenditure of theCaisse Autonome d'Amortissement (9 mil-liard covered by the resources allocated tothe "Caisse"). The budget estimates are asfollows:

Ordinary expenditureBillions of

French francsPublic debt . . . . . 18.0Annuities, pensions, etc. 14.5Administrative expenditure. 64.5

Total 97.0

Extraordinary expenditureLiquidation of expenditure

resulting from the hostili-ties . . . 29.0

Public works, etc.. 8.6

Total 37.6

Ordinary receipts are estimated at 68.2milliard French francs. They cover abouttwo-thirds of ordinary expenditure andnearly one-half of the total budget expendi-ture.

The considerable issue of Treasury bills isreflected in the balance sheets of the threelarge banks, Credit Lyonnais, Societe Gene-rale and Comptoir National d'Escompte).

After considerable withdrawals in thesecond quarter of 1940 (reflected by the bor-rowing of the banks at the Bank of France) areflux of deposits took place at great intensityin the period from July to September (whenstocks were largely sold out), according to the

FRANCE—RETURNS OF THREE BIG COMMERCIAL BANKS[In billions of French francs]

Year and month

1939 December .

1940 MarchJune*.SeptemberDecember

1941 March..

Assets

Cash

4.5

4.0

5.86.2

5.7

Bills

27.2

31.7

36.743.8

50.0

Advancesand

overdrafts

7.9

8.2

9.78.4

8.3

Liabilities

Deposits

39.4

43.5

52.158.5

63.6

* Not published.

annual report of the Societe Generate. Theincrease of deposits continued until the endof the year and into 1941. Although cash re-serves were strengthened (partly owing, nodoubt, to the prohibition of transfer from theoccupied to the unoccupied area) and therewas some private borrowing in the form ofadvances and overdrafts in the middle of1940, the characteristic of the returns is theparallel rise of deposits and bills. As thecirculation of commercial bills (and accept-ances) has fallen with the decrease of busi-ness activity, the holding of Treasury billsmust have risen by at least 20 milliard Frenchfrancs during the year 1940 (an amount fullyequal to the increase of deposits).

In the middle of March 1941, the Bank ofFrance reduced its bank rate and the rate for30-day advances against Government paperof not more than two years' maturity, from 2to 1% per cent. This decrease of % per centwas followed by a similar reduction in therates for National Defence Bills and for thevarious classes of Treasury bills. An im-provement of 414 per cent Government bondsto par in April 1941 opened up the possi-bility of a large conversion operation, cover-ing some 11.5 milliard French francs of pub-lic debt issued through the Credit National.

In spite of great differences Of economicstructure, of monetary conditions and ofpolitical experiences in 1940, certain broadsimilarities in the developments may be per-ceived in the countries of south-eastern Eu-rope. Generally these countries lack organ-ised money and capital markets according towestern standards, the rate of savings is lowand the use of bank notes is more widespreadthan cheques and bank deposits. Unbalancedbudgets, due largely to increased militaryand other extraordinary expenditure (such




as the financing of clearing claims) has beencovered from market borrowing only withdifficulty, if at all. Recourse by the govern-ments to central-bank credit has thus beenfrequent and, in some cases, on a consider-able scale, with corresponding increases inthe note circulation (and in bank reserveswith the central bank). Owing to differencesof accounting, it is not always easy to sayexactly to what extent the recent expansionsin note issues are due directly or indirectlyto Government borrowing from the centralbanks, but this is doubtless the predominantinfluence in most cases. In some instanceswithdrawals of deposits from the commercialand savings banks have led to considerablecalls on the central banks for rediscounts andloans, but these phases have generally beentemporary, continued Government expendi-ture restoring liquidity to the economy. Thefollowing table gives the volume of note cir-culations since 1938, with 1929 and the sub-sequent lowest depression point to form abackground against which the magnitude ofthe recent expansions may be judged.

SOUTH-EASTERN EUROPE—NOTE CIRCULATIONS OFCENTRAL BANKS

[In millions of national currency units]

End of year ormonth

1929Lowest 1930-34 i____

193819391940

March 1941

Percentage increase:In year 1940In 2 years 1939-40In 11 years 1929-40

Bul-garia

3,6092,4492,8004,2456,5187,800

5413381

Greece

5,1934,0037,2399,454

15, 369H8,116

63112196

Hun-gary

501353863975

1,3873 1, 369

4261

177

Rou-mania

21,14419, 60534, 90248, 80064, 34968, 886

3284

204

Slo-vakia

1,3921,6571,568

19

Yugo-slavia

5,8184,3276,9219,698

13, 8342 14, 339

43100138

1 Lowest end-of-year figure, i. e. Roumania 1930, Greece 1931, Hungary1932, Yugoslavia 1933, and Bulgaria 1934.

2 Last return received: Greece, March 15, and Yugoslavia, March 22,1941.

3 By the end of May 1941 the note issue had risen to 1,734 millionpengo, of which 491 million pengo had been issued in incorporatedterritories in exchange for the notes of the former central banks: 85 millionpengo against Czecho-Slovakian koruny, 215 million against Roumanianlei, and 191 million against Yugoslavian dinars.

In all these countries the note circulationin 1940 was well above the 1929 figure, gen-erally two to three times higher (and three tofour times greater than the depression lows).In all cases the expansion from the end of1938 has been rapid, accelerating in 1940.Territorial changes have caused some dupli-cations, e. g., the National Bank of Hungary,on December 31, 1940, had issued 171 million

pengo of its own notes against the equiva-lent of Roumanian notes withdrawn from in-corporated territory (some 5,120 million lei)which are also shown in the outstanding cir-culation of the National Bank of Roumania.

Sweden and Switzerland have much incommon at the present time. Neutral in thewar of 1914-18, the two countries, althoughnot involved in the present war, have spentconsiderable sums upon defence. Both coun-tries enjoy a similarly high national incomeand standard of living and have great finan-cial strength. A good idea of the central-bank and market developments may be ob-tained from the accompanying charts.

Both Sweden and Switzerland lost goldand foreign exchange almost continuouslyfrom 1938 until the spring of 1940, when thetrend was reversed: the efflux was propor-tionately much more considerable for Sweden,especially from the outbreak of war, whereasthe reflux to Switzerland was far greater.Internal credit conditions in Sweden wereseriously affected at the time of the Finnish-Russian war and the Riksbank intervened tomeet Treasury requirements (in particularfor payments abroad) and to assist the com-mercial banks subjected to a rapid with-drawal of deposits. In Switzerland the cashreserves of the banks were large and bor-rowing at the National Bank was not con-siderable (although it must not be forgottenthat the profits on gold revaluations of 475million Swiss francs were distributed be-tween the Confederation and the Cantons inMay 1940). In both countries the situationeased in the second half of the year, but thenote circulation in Switzerland (of whichperhaps 400-500 million Swiss francs ishoarded abroad) continued to expand.

The greater pressure on internal creditconditions in Sweden is also shown by therapid reaction of the Riksbank, which raisedits rediscount rate three times by x/2 per centto reach 3 ^ per cent in the middle of May1940 (two reductions of V2 per cent bringingthe rate back to 2i/2 per cent at the end ofMay 1941). In Switzerland bank rate (whichhas a great influence on mortgage rates in thecountry) remained unchanged throughoutthe period at the very low level of IV2 percent. The margin between short-term andlong-term rates was much narrower inSweden than in Switzerland: the yield onGovernment securities, which in Sweden wasbarely over 2 per cent until the spring of

NOVEMBER 1941 1127



1939, had risen to 414 per cent in April 1940;in Switzerland the rise in the yield was moremoderate, from something over 3 per centto 4^/2 P e r c e n t on May 10, 1940, when thestock exchanges were temporarily closed.In both cases the yields of long-term Govern-ment securities fell below 4 per cent beforethe end of the year.

Changing conditions on the money andcapital markets naturally influenced the Gov-ernments' borrowing policy to cover defenceexpenditure. In Sweden, where defence ex-penditure runs at about 1,800 million Swedish

Swiss National Bank Returnin millions of Swiss francs

3600

Sveriges Riksbank Returnin millions of Swedish Kronor

.Gold and Foreign Exchange(revalued >

B.R.U7S. 1938 1939 194-0 194-1

kronor per annum, of which over one-halfis to be covered by borrowing, issues of Gov-ernment bonds brought in 1,000 million dur-ing the year 1940, the most important beingthe 4 per cent 5-year Defence bonds, of which800 million Swedish kronor were issued,while 340 million new Treasury bills wereplaced, largely with the banks. In Switzer-land, where preparations for defence werestarted in the years before the war, currentexpenditure on defence works and mobilisa-tion is at the yearly rate of nearly 1,000 mil-lion Swiss francs, mostly met by loans: dur-ing the year 350 million was obtained from10-year bond issues (225 million at 3!/2-4per cent in March and 125 million at S1/^ percent in November 1940), 290 million Swissfrancs from two issues of 3 to 4-year Treas-ury bills at 3%-3% per cent, 112 million from3.6 per cent tax certificates (to anticipatereceipts from the national defence "sacrifice"levy), while 250 million Swiss francs fromthe profits on the revaluation of the NationalBank's gold holding in May 1940 were ap-plied towards the amortisation of militaryexpenditure.

As for the experience in the United King-

1938 1939 194-0 194-1

2200

2000

1800

1600

1400

1200

1000

800

600

400

200

0




dom, the following table shows the develop-ment of the budget and public debt quarterlyover the last three financial years.

Revenue from taxation has risen particu-larly from the middle of 1940, owing to alarger yield of old taxes (notably income taxand certain consumption taxes) and the im-position of new ones (notably the excessprofits duty, the national defence contribu-tions and the purchase tax) ; and in the finan-cial year 1940-41 it was one-third above theyear 1939-40. But expenditure has risenmore steeply as the war effort intensified andin 1940-41 was over double the previous year.The budget estimates for 1941-42 show stillhigher figures, revenue rising by nearly 380million pounds sterling to a total of 1,786million. The estimate of expenditure is putat 4,200 million but this figure excludes thevalue of supplies obtained in the UnitedStates. The Chancellor of the Exchequer ex-plained that the figure comparable with theactual expenditure of 3,867 million poundssterling in 1940-41 would be "far beyond"5,000 million for 1941-42.

The first long-term borrowing for defencewas the 80 million pounds sterling 3 per centNational Defence loan 1954-58 issued in June1938. In 1939 the Government bond marketwas weak and the bulk of the deficit financingwas made through an expansion of the Treas-

ury-bill issue. The accompanying chart ofquotations of 3V2 per cent War loan showsthe recovery of the market from the latterpart of 1939, the weakness of May and June1940 (when the revised "minimum" pricewas nearly reached) and the subsequent riseto new high levels with returning confidence,when the opportunity was taken to float anumber of long-term loans.

In the financial year 1939-40, 75 per centof the budget deficit was covered by short-term borrowing and in 1940-41 only 54 percent of a deficit more than three times asgreat. Long-term borrowing grew in im-portance as the war continued. A new issueof National savings certificates and a "sav-ings campaign" produced an increase ofSavings certificates at the rate of over 14million pounds sterling a month during thefiscal year 1940-41; 3 per cent Defence bondswere placed "on tap" in November 1939 andthe issue continued throughout the period;a 3 per cent War loan for 300 million wasfloated in March 1940; 2% per cent NationalWar bonds were placed "on tap" in June 1940and produced 440 million during the year, afurther issue being made in January 1941.In the financial year 1940-41 as a whole nearly1,200 million pounds sterling new money wasraised at long-term, compared with 200 mil-lion in 1939-40.

UNITED KINGDOM—PUBLIC FINANCES

[In millions of pounds sterling]

Year and month

1938 April-June _.July-SeptOct.-Dec

1939 Jan.-March

1939 April-JuneJuly-SeptOct.-Dec

1940 Jan.-March

1940 April-JuneJuly-SeptOct.-Dec

1941 Jan.-March

Financial years 1938-39.1939-401940-41

Budget Accounts (cash basis)

Taxation

132174184437

144194206505

188264299656

9271,0491,409

Expen-diture 2

235238284

296347542625

695915

1,0981,159

1,0551,8103,867

Deficit

10364

100(+139)*

152153336120

507651798503

128761

2,458

Public debt increases or decreases (—) x

Long-andmiddle-

term debt

1364

( - 1)(-17)

( )( - *)

41163

339184310326

59200

1,159

Floatingdebt

93( - S)

104(-116)

156160299

(-46)

173474490192

78569

1,329

Total

10661

103(-185)

154158340117

512658800518

137769

2,488

Otheritems (3)

( - 3)+ 3

( - 3)(- 6)

(~ *)(- 5)(~ 4)+ 3

( - 5)( - 7)(- »)(-15)

(- 9)(- 8)(SO)

1 Nominal amounts. Movements as calculated from the annual national debt returns in March and from quarterly estimates.2 Excluding sinking fund.3 Other items producing agreement between the quarterly deficit and nominal movements of public debt, e. g. sinking fund, movements of

Treasury cash balance, difference between nominal amount of loans issued and cash receipts, etc.4 Surplus.

NOVEMBER 1941 1129



Great Britain - Quotation of War Loan

90

85 J F M A M J J A S O N O J F M A M J J A S O N O J f M A H J J A S O N D

1939 19*0 1941

The balance of the budget deficit, some1,300 million pounds sterling, was coveredby an increase in the floating debt by thisamount to 2,800 million on March 31, 1941.The Treasury bill issue increased by 780million to 2,210 million on March 31, 1941,having doubled since the beginning of thewar. Although the importance of the divi-sion of Treasury bills into those sold by"tender" (to the market) and those "on tap"(to official and semi-official investors) hasdiminished, it is not without significance thattap bills have increased by 760 million poundssterling on the year to March 1941 comparedwith a rise of only 110 million in the billsissued by tender. Some of these tap billswere probably held by the UnemploymentFund, by Government insurance schemes andsimilar bodies but, in so far as they are heldby Government offices as an employment forsurplus balances, the debt is due by one Gov-ernment department (the Treasury) toanother and not to the public. Tap bills havealso been issued to the Exchange EqualisationAccount against the disposal of the gold heldby the Account for foreign payments. Inthis way the budget deficit has been coveredby the utilisation of existing monetary re-serves. The case is somewhat different withregard to mobilised dollar securities; here areserve'of the country as a whole has beenused, not a reserve belonging to the Govern-ment itself. The dollar securities were boughtby the Government from the original owners

for cash (sterling), the Government raisingthe money by increasing its borrowing.Doubtless one reason for the large increaseof long-term lending to the Government in1940-41 was the fact that previous owners ofdollar securities mobilised during the yearreinvested the proceeds, directly or indirectly,in Government (sterling) securities. TheChancellor of the Exchequer, in his bud-get speech in April 1941, said that, in roundfigures, Government expenditures in the first18 months of war w a s 4,650 million poundssterling, of which 2,000 million was met bytaxation, 1,000 million from overseas re-sources, and the balance of 1,650 million byborrowing.

An interesting innovation in 1940 was theinvitation to the banks to make direct six-month deposits with the Treasury. 430million pounds sterling deposits bearing in-terest at 1% per cent were outstanding atthe end of March 1941. The financing of thebudget deficit was the outstanding influenceon the banking system during the year, asthe following table shows:

LONDON CLEARING BANKS' RETURNS

[In millions of pounds sterling]

Year and month

1939 December i1940 March

JuneSeptemberDecember i

1941 March

Assets

Cashreserves

andmoneyat call

Billsdis-

counted

444390436432483

420

334336384401265

194

Treas-ury de-

positre-

ceipts

91313

2 374

Invest-ments

609611636697771

821

Ad-

1,0021,006

962937906

908

Liabili-ties

De-posits

2,4412,3632,4692,5972,800

2,764

1 December figures are given for the 31st of the month. Other returnsare on varying dates in the month.

2 Part of the total of 430 million pounds sterling outstanding at theend of March 1941 was held by other than clearing banks.

On the year to December 1940 depositshave risen by 359 million pounds sterling,that is by 15 per cent, part of which, however,is due to the longer time taken for the col-lection of cheques, owing to the physical in-convenience under which the London marketoperated, particularly in the second half ofthe year. Bank credit granted to private,industrial, and commercial customers de-creased : advances fell by 96 million while thenumber of commercial bills discounted doubt-




less declined (over nine-tenths of the billsin circulation being Treasury bills). Morebank credit has been granted to Governmentcontractors but less in other directions, par-ticularly for the financing of foreign trade,now largely in Government hands. Creditgranted directly or indirectly to the Govern-ment grew considerably. Treasury depositreceipts and bills discounted (includingTreasury bills) together were 244 millionpounds sterling higher on the year, while"investments" (including Government se-curities) rose by 62 million. These figuresshould be related to the increase, in 1940, of1,091 million in the floating debt and 996million in the long-term Government debt.The clearing banks appear to have takenrather over 300 million pounds sterling ofGovernment issues exceeding 2,000 million,say 15 per cent.

The expansion of clearing-bank depositsin 1940 was accompanied by a rise of thebanks' cash reserves at the Bank of Englandby 20 million pounds sterling to 136 million.The Bank of England's return was also af-fected by the increase of the note circulationby 60 million to nearly 620 million, almostthe whole increase taking place in the firstseven months of the year.

Money market conditions have continuedvery easy. Bank rate, which was raised fora few weeks on the outbreak of war, has re-mained since October 26, 1939, at 2 per cent,while the discount rate on Treasury bills,which dominates the market, was steady in1940 at a shade over 1 per cent, falling inMarch 1941 to under 1 per cent for the firsttime during the war. While the weight ofmoney does not find an expression in the Treas-ury-bill rate, which, for technical reasons, isstereotyped, it affects the volume of applica-tions, which has been as high as 160 millionpounds sterling for 65 million bills offeredby tender. Long-term rates are best ex-pressed by the yield of representative Gov-ernment securities. The quotation of the 3!/2per cent War loan (a funded issue redeem-able at the option of the Treasury only after1952), which was 95 at the beginning of theyear, giving a flat yield of 3.7 per cent, roseabove par in April and, after a setback inJune, gradually strengthened to 105 in March1941, with a flat yield of 3.3 per cent. Shorter-term issues and loans with fixed maturitydates gave lower yields and 2 ^ per centNational War bonds of 5-7 years, for exam-

ple, have been on tap at par since June 1940.In February 1941 the legal maximum atwhich the Government might borrow moneywas lowered from 5 to 3 per cent, a measuretaken in order to indicate that the authoritieswere determined to borrow at low rates allthrough the war.

Stock exchanges.—The outbreak of thewar and the military events of 1940 have notleft the stock exchanges unaffected, thoughin this field the divergence between the tend-encies in different countries has been remark-able. Valuations of capital assets, which innormal times largely reflect movements incurrent profits and interest rates, tend underpresent conditions to be based on more orless uncertain anticipations as to develop-ments in the years to come.

Almost all the stock exchanges displayed aweak tendency in the first five months of1940; on May 10 the bourses were closed inBrussels, Amsterdam, and Zurich, and onJune 10 in Paris. Zurich was the first toreopen, on July 8; Amsterdam came later inJuly and Brussels in August, while Parisopened for bond dealing in October but re-mained closed for shares until March 1941.There was a mild setback in Berlin in June(reported to be due to the prospect of a shortwar), while in London the slump which hadbegun in March continued into July. All theexchanges show rises of varying degree inthe second half of the year. In the spring of1941 the share indexes for New York andfour of the European exchanges (London,Zurich, Amsterdam, and Stockholm) weregrouped around 75 to 90 per cent of theaverage for the year 1938. The indexes forBerlin, Milan, Lyons, and Brussels weregrouped around 150 to 180 per cent of the1938 level—about twice as high as the for-mer group.

The most spectacular rise took place inBrussels, where the share index more thandoubled during the year 1940. The boursewas shut on May 10 and remained closeduntil August 21, when the bond market wasopened, and from September 3 shares weregradually introduced. Various precautionswere taken, particularly the prohibition offorward markets, the placing of all dealingupon a cash basis and the fixing of "justquotations" some 15 per cent above thoseruling before the closing in May. But furtherrises had to be allowed and by February 1941the "Amens" Index was 100 per cent higher

NOVEMBER 1941 1131



than in May. The President of the StockExchange Commission issued an order inthe middle of March 1941 prohibiting in-creases of quotations by more than 1 percent a day. About two weeks later a riseof 2 per cent daily was permitted.

The Paris bourse was shut on June 10,1940 (four days before the entry of Germantroops) and, except for an unsuccessful trialduring a few days at the end of July, notopened again until October 14. On the re-opening, quotations were confined to rentesand other Government paper and to industrialbonds; there remained no official market forshares in the occupied zone until the rein-troduction of shares in Paris on March 19,1941.

With Paris closed or restricted in scope,the importance of the provincial markets inthe unoccupied zone increased, especially inMarseilles and Lyons. The Lyons bourse hadbeen opened on August 27 for both bonds andshares and, after some initial weakness, a bullmovement set in, with particular attentionpaid to shares of electrical and chemicalworks in the unoccupied zone (less subject toraw-material difficulties than some others),as also of industries directly or indirectlyhaving colonial or foreign interests. A num-ber of shares doubled in price during the bullmovement. By March 1941 the yield of manyshares was down to about 1 or 2 per cent.

Rentes were also strong but, owing to theimpossibility of arbitrage, considerable dif-ferences of quotations developed betweenParis and the provincial markets. The rise inrentes was checked at the end of the yearbut was resumed in the new year, when yieldswere reduced to about 4!/2 per cent.

Besides the regulation of technical ques-tions as to cash payments and prior deliveryof securities, special measures were taken,to enter into force on the opening of the Parisshare market in March 1941, for the purposeof checking an exaggerated rise in sharevalues and suppressing illegitimate markets:shares were to be delivered only in registeredform (or deposited with a bank or stock-broker), single daily quotations were fixedand fluctuations beyond 5 per cent in oneday were not permitted, etc. Foreign securi-ties and the securities of French companiesoperating abroad might not be quoted inParis (though dealt in at Lyons). The im-mediate result of these measures was a sharpcontraction in the turnover.

The Amsterdam bourse, after a weak trendin the first months of the year, was shut onMay 10, 1940, and reopened gradually fromJuly 15 onwards, at first for Governmentbonds and, after the establishment of ratesin unofficial dealing, for shares with officialquotations. The opening was firm and in thefollowing months all securities previouslyquoted were listed for dealings, includingAmerican shares (generally Dutch cer-tificates) and German bonds and shares.Some Dutch shares, especially those of com-panies with foreign interests, showed ex-traordinary rises from the low levels to whichthey had previously fallen. The abolition ofexchange regulations between Holland andGermany on April 1, 1941, opened the Am-sterdam market to German purchasers with-out restriction and a considerable rise inquotations ensued.

At the end of 1940 the share index wassome 50 per cent above the closing figure inMay but still somewhat below the 1938average. American shares were quoted wellabove the New York parities, partly, but byno means wholly, for the reason that divi-dends were included in the price, owing tothe impossibility of transfer. From May 1,1941, the official quotation of American sharecertificates was suspended.

The Swiss bourses started the year weakand after a rather sharp decline were closedfrom May 10, 1940, at the wish of the Na-tional Bank, while outside dealings betweenbanks were restricted. On July 1 unofficialdealings on the exchanges were permitted ex-perimentally and on July 8 the official openingwas made. Share trading was resumed, freeof restrictions, while minimum prices, 5 percent under those of May 9, were introducedfor Government bonds. But the bond marketwas firm and the share market quiet; theshare index finished the year 1940 about 10per cent below the end of 1939 but showed asustained rise in the first months of 1941.

Of the stock exchanges that remained openthroughout 1940, those of Milan and Londonshowed the most considerable fluctuations,Milan, however, ending nearly 20 per centhigher and London over 20 per cent lower onthe year. Milan quotations rose sharply onthe outbreak of war in September 1939 and,after some hesitation in November, upon theintroduction of the capital tax, finished theyear strongly. In the first months of 1940a setback was experienced, due in part to a




new tax on stock exchange profits, and ac-centuated in May through the imminence ofItaly's entry into the war and fears of a mora-torium and of the closing of the exchanges.With the beginning of hostilities, the upwardmovement once more gained ground, carry-ing the index in December 1940 to a new high,but temporary, peak. A sharp reaction wascaused by the imposition of special taxes andrestrictions on dividends, but when thesewere relaxed in March 1941, the Decemberpeak was again exceeded. In March 1941the yield on most shares was reckoned atabout 3 per cent compared with over 5 percent on Government bonds.

The London stock market was buoyantfrom the outbreak of war up to March 1940,when a landslide started which, by the endof June, had carried the index down by morethan 30 per cent. From this point a slowbut steady recovery raised quotations, sothat at the end of January 1941 one-third ofthe loss had been regained. London shareprices remained depressed, however, by theweight of direct taxation (in addition to in-come tax at 42 V2 per cent, a 100 per cent ex-cess profits duty was imposed in 1940), while,in some cases, difficulties of valuation havemade cautious quotations desirable.

Between the outbreak of the war and theend of 1940 the index of share quotations onthe Berlin bourse rose by 40 per cent. Tak-ing advantage of the strong markets, thePrussian State Bank (Seehandlung), whichhad the trusteeship of the shares accepted bythe Reich in payment of the tax on Jews inNovember 1938, continued its sales, and atthe end of 1940 there remained only a verysmall unsold balance. In view of market con-ditions it was decided to reintroduce the so-called "speculation tax" (really an incometax on profits realised on the sale of shareswithin one year of purchase), which had beenin abeyance for two years.

Two reasons for the rise in share quota-tions in Germany may be mentioned: the fallof long-term interest rates and the narrow-ness of the share market in the face of an in-creased demand. The rate of interest onnew issues of Reich loans was reduced from4i/2 per cent at the end of 1939 to 3^2 percent early in 1941, the yields falling accord-ingly. The average yield on all Reich loansoutstanding was, of course, somewhat higher.With the market strong, the decline of shareyields was more rapid. The officially cal-

culated average yield for all shares dealt in(some 450-470 issues including about 50 non-dividend-paying) fell below 5 per cent inDecember 1939, below 4i/2 per cent in March1940, and below 4 per cent in September1940; early in 1941 it was 3% per cent.

In all cases where stock exchanges havebeen reopened after an abrupt close, specialmeasures have been taken regarding uncom-pleted forward contracts, outstanding loanson securities, and similar technical matters,in order to facilitate dealings. In addition tothe factors which tend indirectly to weigh onshare quotations (war damage, heavy directtaxation, limitation of dividends, etc.) gov-ernments or stock-exchange authorities havefound it necessary to take measures to checkunwarranted price rises and the developmentof black markets. Generally, stock exchangeshave been reopened first for bonds and laterfor share dealing, introduced by degrees—inParis only after five months. Other meas-ures may be summarised as follows:

(a) dealings only for cash and no forwardmarkets (general) ;

(b) verbal warnings, official or semi-offi-cial, against exaggerated rises of quo-tations (in several instances) ;

(c) the fixing of minimum prices (Oslo) ;(d) fixing of maximum price rises for any

single day (Brussels and Prague) ;(e) fixing of maximum quotations (the

"price-stop" in Vienna) ;(f) fixing of one quotation a day (Paris) ;(g) prohibition on dealing outside the

stock exchange at prices higher thanthe official quotation (Prague) ;

(h) prohibition of publication of unsat-isfied "bid" prices (Brussels andPrague);

(i) prohibition of use of securities as col-lateral for stock exchange loans(Brussels and Paris) ;

(j) making all shares transferred nomina-tive and thus prohibiting dealing inbearer securities (Paris).

It is interesting to note that in the north-ern countries minimum prices were intro-duced for both bonds and shares and that inSwitzerland a minimum for Governmentbonds only was fixed (somewhat on the linesof the policy adopted in England on the out-break of war).

As stock markets decline, so bond marketsgain in importance, not only relatively but

NOVEMBER 1941 1133



usually in absolute volume and in turnoveralso. The growing significance of the bondmarkets, especially for government obliga-tions, is a result of the more active partplayed by governments in the economy of cer-tain countries in recent years and by all gov-ernments in time of war. But the increaseof the public debt is often offset to a greateror lesser extent by the repayment of privateindebtedness. This shift from private topublic indebtedness (on the stock exchangefrom shares to bonds and in the banks fromadvances to "investments") is accentuatedin wartime, when, indeed, the growth of thepublic debt may well outrun the decline ofprivate indebtedness. The growth of thedomestic public debt in England has producedin the London stock exchange a bias towardsbonds which is expressed in the fact that the2,000 million pounds sterling 3 ^ per centWar loan is the real "market leader" (in con-trast to the New York "market leaders",which are still thought of as the stocks ofoutstanding corporations).

The growth of Government debts in recentyears has a striking parallel in the growth inimportance of small sayings invested throughsavings banks, life assurance companies, so-cial insurance funds, and similar institutions,which, having their liabilities expressed infixed monetary sums, prefer to invest in bondswith a fixed nominal amount and maturitydate. This is true of the United States, Eng-land, Germany, and certain other countries,and is well illustrated by statistics recentlypublished in Germany showing that over halfthe bonds outstanding in Germany are heldby institutions, against about one-tenth be-fore the war of 1914-18.

Government securities, long and short, arebecoming the preponderating investment ofcommercial and savings banks, of life assur-ance companies, and social funds almostthroughout the world. Another aspect of therelative decline of business and other privateborrowing is the profound change in thestructural form of the total indebtedness,particularly in relation to the underlyingassets. In other words, there is a changefrom the more or less illiquid private loan,bank advance, or direct mortgage to the com-paratively liquid Treasury bill or "shiftable"obligation (i. e. saleable on a regular market).Governments cannot for long allow "liquidclaims", especially in the form of Governmentsecurities, to become illiquid through the clos-

ing of stock exchanges or in other ways. Theevents of 1940 showed how every effort wasmade to avoid moratoria and how bond mar-kets were kept open or rapidly reopened, evenin the midst of catastrophe.

It is an ironical fact of the present timesthat the destruction of national wealththrough warfare is facilitated by the creationof more "liquid claims", in the form of Gov-ernment bonds, to the aggregate wealth thatremains. In England, the compulsory insur-ance against war damage has been introducednot only to ensure an equitable distributionof sacrifice but also to preserve the complexstructure of debts and claims which has beenerected. The volume of Government in-debtedness is everywhere growing both ab-solutely and in relation to the nationalwealth, and important problems will call forsolution in the post-war period when work-ing capital and other funds invested tem-porarily in Government securities are wantedfor their normal purposes.

CENTRAL BANKING DEVELOPMENTS

Many important factors relating to centralbanking activity during the year have alreadybeen mentioned earlier in this Report, espe-cially in the sections on exchange rates andon government finance, money, and capitalmarkets. At the beginning of the war, orshortly afterwards, nearly all European cen-tral-bank statutes were modified to givegreater elasticity for direct lending to thegovernments and to allow the release of goldand foreign exchange for foreign paymentswithout a contraction of the note circulationor of bankers' cash, and further steps in thisdirection were taken in 1940. The advent ofwar, indeed, brought.an expansion of cen-tral-bank credit in most European countriesfor the needs of the Government and, at timesof emergency, to cover withdrawals of de-posits by the public from the other banks.The growing liquidity of the markets as aresult of Government spending occasionedconsiderable repayments of private creditpreviously granted by both the central andthe commercial banks, but note circulationscontinued to rise, in some cases with in-creased rapidity.

Modifications were made in the laws andstatutes governing the activity of centralbanks to allow further direct lending to theGovernment in France and Algeria, in Bul-garia, Turkey, Greece, and Roumania dur-




ing 1940. By two Conventions of February29 and June 9, 1940, the amount of provi-sional advances granted by the Bank ofFrance to the Government was raised to70 milliard French francs, a limit whichwas nearly attained early in October butwhich has not been exceeded. On August25, 1940, a special advance was granted bythe Bank of France to the Government tocover occupation costs, the total of permis-sible advances on this account being succes-sively raised to 108 milliard in May 1941.The Bank of Algeria was authorised by alaw of December 31, 1940, to place at the dis-posal of the French Government a furtheradvance of 1 milliard French francs and anadvance of 50 million to the Government ofAlgeria, the legal maximum of the note cir-culation being raised at the same time from5 to 7 milliard.

Further resources for Government creditwere given in Bulgaria by a law of March9: the National Bank had previously beenauthorised to place an amount not exceeding20 per cent of its paid-up capital and reservesin Government or Government-guaranteedsecurities. The new law authorised the Bankin addition to invest a sum not exceeding 140per cent of its paid-up capital and reserves inTreasury bonds maturing in, at most, sevenyears, issued to foreign firms in payment ofGovernment supplies. A law of May 30 au-thorised the Turkish Treasury to contractextraordinary advances from the central bankto the extent of 250 million Turkish pounds.The legal limit for the temporary advancesof the Bank of Greece to the Greek Govern-ment was raised from 400 million drachmato 1,000 million by a law of October 18, 1940.In Roumania, by a decision of the Councilof Ministers dated March 29, 1940, the Na-tional Bank's powers were widened as re-gards the granting of credit to agriculturistsas well as to the Government. The limit onthe discount of agricultural bills up to ninemonths' maturity, previously fixed at 40 percent of the bill portfolio, was removed.Further, the discounting of Treasury bills byprivate persons had been limited to 20 percent of the Bank's capital, and advances oroverdrafts on Government or publicly-guar-anteed securities to 30 per cent of the billportfolio, while the purchase of Governmentor Government-guaranteed securities waslimited to the total of the capital and reserves.The new law authorised the General Council

of the Bank to draw up temporary rules re-garding these operations so long as the "ex-ceptional circumstances" obtained.

As regards gold reserves new laws werepassed in 1940 and revaluations were maden France (February), Holland (March),

Roumania (April), and Switzerland (May),in each case the book profit going largely, ifnot wholly, to the Government to cover de-fence and other expenditure. In the Protec-torate of Bohemia and Moravia the goldprice was lowered when the exchange wasadjusted upwards to the Reichsmark at theend of September: the gold reserve of theNational Bank was written down in value,special measures being taken to deal with thebook loss of 207 million koruny. A changewas made in the law governing the SverigesRiksbank, which had previously limited thegold holding of the Bank eligible as primaryreserve to the gold held in Sweden, plus goldheld abroad or in transport up to 15 per centof the total reserve. By a royal ordinanceof January 31, 1940, the gold reserve of theBank now constitutes all gold and bullionheld by Sveriges Riksbank, wherever its loca-tion. Further, while the gold reserve remainsin the books at par value, market value hasbeen taken for the calculation of cover re-quirements since that time.

Modifications of laws and statutes havealso been made during the year with regardto the internal administration of the centralbanks in Roumania (March 29), Yugoslavia(September 14), France (November 24), andthe French colonial banks in Indo-China,Madagascar, and French West Africa, aswell as the Bank of Algeria.

The most interesting of these changes werethose affecting the Bank of France. The re-form of 1936 maintained the principle of theBank's fundamental statutes of 1808 that thedirection of the affairs of the Bank should beexercised by a governor appointed by thestate and assisted by two deputy governors.But that reform replaced the fifteen regentsof the Bank (elected by the two hundredlargest shareholders) by a General Councilof twenty members, of which only two wereelected by the shareholders, nine represent-ing economic and social interests (six chosenby the Government) and nine the collectiveinterests of the nation, chosen from amongstthe highest officials. The new law of Novem-ber 24, 1940, allows this organisation to con-

NOVEMBER 1941 1135



tinue but reduces the number of councillorsfrom twenty to eleven: three chosen by theshareholders, four by the Government fromamong representatives of commerce, indus-try, and agriculture, three persons with of-ficial positions (the Director of the Caissedes Depots et Consignations, the Governorof the Credit Foncier, and the Director-Gen-eral of the Credit National), while one coun-cillor is chosen from the personnel of theBank. Thus, although the number of coun-cillors is reduced, the shareholders are betterrepresented and there are no longer anyofficials representing the various services ofthe Government. Similar administrative re-forms were made at the same time to theCredit Foncier and the Credit National, inboth cases only the highest executive beingthe representative of the state.

Three European central banks suspendedoperations in 1940 when the Baltic Stateswere attached to the U. S. S. R. and the roublecurrency introduced. A new Bank of Issuein Brussels was constituted on June 27, 1940,by a decree of the German Military Com-mander for Belgium and Northern France.The Bank, which is a joint-stock companyunder Belgian law, has a capital of 150 mil-lion Belgian francs (subscribed by the Bel-gian commercial banks). The Bank's statutesfollow the general line of central-bank lawmodified by the conditions of its creation.The Bank is authorised to issue notes ex-pressed in Belgian francs which, if issued,would be legal tender; but, as already men-tioned earlier in this Report, no bank-noteshave been issued—the Issue Bank having be-come in practice the banking department ofthe National Bank, entrusted particularlywith relations with the occupying authorities,the management of the clearings and the ac-counts of the Reichskreditkassen, while thepostal cheque accounts have also been trans-ferred to it. The creation of a new centralreserve bank in China has been mentionedpreviously in this Report.

Though actual changes in the laws andstatutes governing central banks have notbeen numerous during the past year, meas-ures taken affecting central banks directlyor indirectly in an administrative or othercapacity have far exceeded the experience ofrecent years. It is only necessary to men-tion some of the tasks carried out by centralbanks to indicate the wide field covered.

(a) Temporary legal and other arrange-ments were made regarding the removalof offices and administration in times ofemergency, and in some instances actualremovals took place.

(b) Numerous exchanges of bank-notesand other means of payment have beenmade in attached and occupied territories,generally involving changes of bookkeep-ing into the new currency. In the occupiedterritories arrangements have been con-cluded, making the national currency avail-able to the occupying authorities and pro-viding for the withdrawal of previouslyissued Reichskreditkassenscheine. Thesecentral banks work with the supervision ofa German Commissioner appointed by theoccupying authorities.

(c) Foreign exchange regulations havegenerally been made watertight and inmany cases adapted to the German model.In Roumania the premiums given for goldproduced in the country and sold to theNational Bank have been changed. AsEuropean gold reserves are now mostlyheld outside Europe and foreign exchangereserves in sterling and dollars are largelyunavailable, the importance of the Reichs-mark holding has considerably increasedfor certain central banks, not only in vol-ume but in turnover.

(d) Numerous new bilateral clearingand payments agreements, either throughthe central bank or through an associatedinstitution, have been made during theyear. Of particular practical importancehas been the mobilisation of clearing "Spit-zen" through central-bank credit.

(e) Mobilisations of foreign securitieshave taken place, as also the registrationand management of enemy property and,in occupied territories, the property of theenemies of the occupying authorities (aswell as the restitution of the property ofthe occupying authorities or their nationalspreviously placed under supervision).

(f) Small notes have been issued in somecases to supplement the coinage, whilenickel and bronze coins have been with-drawn (involving the disappearance of thewell-known French "sou").

The Reichsbank in particular has beencalled upon for numerous administrative andother tasks. The Reichskreditkassen, whichclosely followed the German army in the




field, were manned by Reichsbank personnel(although the institutions were, of course,completely separate) and the management ofthe circulation of Reichskreditkassenscheineand their withdrawal were thus supervisedby Reichsbank staff. Reichsbank notes,which had previously been issued in the Saar(February 1935), Austria (March 1938),the Sudeten territory (October 1938), Memel(March 1939), Danzig (September 1939),and the incorporated territories of Poland(November 1939), were issued during 1940in Eupen, Malmedy, and Moresnet (June),and in Alsace, Lorraine, and Luxemburg(August). Not only were Reichsbank notesintroduced in these cases but bookkeepingand other accounts were changed over intoReichsmark.

One feature of central bank balance sheetshas been common to all countries—the in-crease of the note circulation, particularlyduring the past two years. The accompany-ing chart gives end-of-year index figures foreleven European and three overseas coun-tries. Certain European countries have beenomitted from the statistics for lack of recentdata, e. g., Italy, Spain, and Norway, andothers owing to the incomparability of thedata, e. g., Czecho-Slovakia. A warning mustbe uttered regarding too close a comparison.Changes in gold values have been consider-able but the movement of prices, particularlyretail prices and wages, in the countries con-cerned is probably the most realistic criterion,and it should be remembered that for nearlyall of the countries shown in the chart retailprices were, on the average of 1940, belowthe level of 1929 (the important exceptionbeing Japan with a 40 per cent increase).

The fact that only the note circulation ofthe central bank has been used for the in-dexes, except for the United States where all"money in circulation" has been taken, doesnot invalidate the chart; generally the in-crease of the circulation of coin is not dis-proportionate to the rise in the issue of notes.

The main reasons for the increase of notecirculations over the last few years werementioned in the last Annual Report. Higheramounts paid as wages and spent on con-sumption goods, larger amounts carried ascash by the individual or held as reserves bycommercial banks and other institutions, andan increase of hoarding, affected perhaps bythe low rates paid on deposits, are amongthe most important general factors. Special

influences were operative in some cases: theincrease of foreign hoarding of Swiss notesfrom 1931 onwards, the rise in the price ofgold in South Africa from 1932 and, for Ger-many, the increase of territory, especially theincorporation of Austria and the Sudetenareas in 1938, should be mentioned. The ac-celeration of the increase in the volume ofnotes in circulation in the last two years is inEuropean countries to be associated with thewar: in part a result of the direct or indirect

1929 1930 1931 1932 1933 1934- 1935 1936 1937 1938 1939

Index ofNOTE CIRCULATION

in National CurrenciesOn base 1929 = 100End of year figures

1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 19408.R.I.447.

NOVEMBER 1941 1137



financing of the Government by the centralbank, in part a reflection of a higher demandfor liquidity by the public. The lower velocityin the agricultural sector of the economy(which has had its income position improvedin many countries) must, however, be takeninto account. Moreover, it is probable thatmobilisation increases the need of actualcash. For these and other reasons the risein note circulation is generally higher thanthe increase in "money incomes" and cannotin itself be taken as the measure of an infla-tionary expansion. Almost without exceptionnote circulations have risen since 1929 morethan deposits held at commercial banks, while"the other sight liabilities" of the centralbanks (especially the reserve balances ofcommercial banks) have shown highly vary-ing movements.

The following table shows the relation-ship between the note circulation of thecentral bank, the total of "other sight liabili-ties", and the total deposits and current ac-counts with the commercial banks for theyears 1929 and 1940, and the percentage in-crease over the eleven years in the UnitedStates and in three European countries. Forthe United Kingdom there is a remarkablestability in the relationships, each of thethree items having risen over the elevenyears by about one-half, the total of theclearing banks' deposits remaining between414 and 5 times as great as the note circula-tion. For the other countries importantchanges in the relationship are noticeable.For the United States the money in circula-tion has nearly doubled, rising rather fasterthan total deposits with the member banks.For this country, however, the most remark-

able change has been the increase in the"other sight liabilities," particularly the re-serve balances of the member banks. Thecash basis thus exists for a considerable ex-pansion of member-bank deposits throughthe purchase of securities or other credit op-erations. This relative increase of the cashreserves of commercial banks is a feature ofdevelopments in a number of countries otherthan those shpwn in the table, e. g. Finland,Holland, Belgium, Denmark, etc. and appearsto show for these countries the tendency forsuperfluous central-bank credit to return viathe commercial banks and to be held, at leastfor the time being, as surplus deposits ratherthan as notes.

In Germany also, the "other sight liabili-ties" at the Reichsbank have risen rathermore than the note circulation and, as inthe other countries mentioned, this is an in-dication of the liquidity of the market. Theapparent relative fall in the volume of com-mercial bank deposits compared with thenote issue must be read in the light of thelarge volume of foreign deposits in 1929which had been withdrawn before 1940. TheFrench situation is remarkable in that de-posits with the three big banks fell from halfof the volume of the note circulation in 1929to about one-quarter in 1940, when the de-posits of all the banks in the country wouldcertainly have amounted to considerably lessthan the total note issue.

To obtain a complete picture it would nat-urally be desirable to trace the changes inthe relationships shown in the tables throughthe years and to consider other factors suchas the volume of savings deposits. But thetable brings out the fact, which is confirmed

CENTRAL BANK NOTE CIRCULATIONS AND RELATED FACTORS

[End-of-year figures]

Central Bank:Note circulationTotal "other sight liabilities".

Commercial Banks:Total deposits and current

accounts

U. S. A.

1929 1940

Millions of dollars

4,5782,414

33, 865

8,73216,126

46,007

1940as per-

centageof 1929

191668

136

France

1929 1940

Millions of francs

68, 57119, 587

2 32, 682

218, 3831 28,187

2 58, 448

1940as per-

centageof 1929

318144

179

Germany

1929 1940

Millions ofReichsmark

5,044755

21, 753

14, 0332,561

3 34,000

1940as per-

centageof 1929

278339

156

United Kingdom

1929 1940

Millions ofpounds sterling

380160

1,889

616251

2,800

1940as per-

centageof 1929

162157

148

1 Without Reichskreditkassen accounts.2 Three large banks: Credit Lyonnais, Comptoir National, and Socie'te1 Ge'ne'rale.3 Estimated 33-35,000 million Reichsmark.




by calculations for other countries, that gen-erally the rise of note circulations has beenmore rapid than the increase in the volumeof bank deposits in recent years, even incountries such as the United States, wherethe cheque habit is well developed.

In time of war the central banks, as theultimate source of liquidity, are naturally ex-posed to heavy strain. In this connection itis pertinent to point out that both in theUnited Kingdom and in Germany direct bor-rowing from the central bank has been on avery small scale and utilised only to evenout temporary irregularities of receipts andexpenditures. In the calendar year 1940 thepublished statistics show the direct advanceof the Bank of England to the Treasury atits highest point of 50 million pounds sterlingin December, compared with an average notecirculation of 580 million and total budgetexpenditure of 3,300 million: similarly, theworking credit granted by the Reichsbankto the German Government touched 685 mil-lion Reichsmark in June compared with anaverage note circulation of 12,200 million

and total receipts from taxation and borrow-ing of 60,000 million. In both cases directadvances from the central bank did not ex-ceed 2 per cent of annual budget expenditure.

Indirect government borrowing and otherinfluences are, however, also of importanceand, in the end, the currency system willonly escape comparatively unscathed whereinternal war financing is effected from cur-rent taxation, and through the borrowing ofgenuine savings. No doubt, dangerous de-velopments are scarcely concealed in manycountries and, if they are not arrested, thetask of setting right currency troubles whenthe war is over will be far from easy. Inwartime it is inevitable that central banks,as indeed all other institutions, must comelargely under government control and par-ticipate to their utmost in the effort of theircountries. But their principal contributioneven then should be to uphold fundamentalprinciples, the non-observance of whichwould not only render post-war reconstruc-tion and adaptation more difficult but mightalso impair the war effort itself.

NOVEMBER 1941 1139


/rational Su.mm.atu o"k Bu5lnc55 (condition*

Compiled October 17 and released for publication October 20. Figures shown on charts may differ frompreliminary figures used in text.

INDUSTRIAL activity continued at a highrate in September and the first half of Oc-

tober. Further advances in the output ofdefense products were accompanied by cur-tailment in some lines of civilian goods, par-ticularly automobiles, rubber, and silk. Pricesof industrial products increased further butagricultural prices declined after the middleof September, and on October 16 droppedsharply in response to international develop-ments.

ProductionIndustrial output increased by about the

usual seasonal amount in September and theBoard's adjusted index remained at 160 percent of the 1935-1939 average, the same asin July and August. Continued increases inactivity were reported in the machinery, air-craft, and shipbuilding industries. At steelmills activity in September and the first halfof October was maintained at about 97 percent of capacity. Output and deliveries ofnonferrous metals likewise remained at aboutcapacity levels, while lumber production de-clined somewhat from the high August rate.Automobile production increased less than

INDUSTRIAL PRODUCTION

Federal Reserve index of physical volume of production, ad-justed for seasonal variation, 1935-1939 average = 100. By months,January 1935 to September 1941.

seasonally in September, following thechangeover to new models, and, accordingto preliminary estimates, output in Septem-ber was considerably below the maximumquota that had been authorized by the Gov-ernment.

In the textile industry activity declinedsomewhat in September, reflecting mainly afurther sharp reduction at silk mills. Ac-tivity at wool mills rose to a new high level,while at cotton mills there was little changefrom a rate slightly below the peak reachedlast May. Shoe production continued inlarge volume, and output of manufacturedfood products was maintained near the peakAugust level. Output of chemicals likewisecontinued at earlier high rates, but at rubberplants activity was considerably below thelevel of last summer owing to curtailmentprograms ordered by the Government.

Coal production, which during the summermonths had been unusually large, increasedless than seasonally in September, owing inpart to temporary work stoppages at somebituminous and anthracite mines. Crudepetroleum production advanced to recordlevels in September and the first half of Oc-

WHOLESALE PRICES OF BASIC COMMODITIES

1935 1936 1937 1938 1939 1940 1941

Bureau of Labor Statistics' indexes based on 12 foodstuffs and16 industrial materials, August 1939 = 100. Thursday figures,January 3, 1935 to October 23, 1941.



National Summary of Business Conditions

tober, and output of metals and shipmentsof iron ore down the Lakes continued atabout capacity.

Value of construction contract awards de-clined in September, according to figures ofthe F. W. Dodge Corporation, reflectingchiefly decreases in awards for public proj-ects which had been exceptionally large inAugust. Awards for private residentialbuilding also declined, while contracts forother private work increased somewhatfurther. Total awards in September, as inAugust, were 80 per cent larger than in thecorresponding period last year. This higherlevel reflected mainly a greater amount ofpublic construction, which was nearly threetimes as large as a year ago, compared withan increase of about 10 per cent for privateconstruction.

On October 9, the Supply Priorities andAllocations Board announced that, effectiveimmediately, no public or private construc-tion projects which use critical materialscould be started during the emergency unlessthese projects were either necessary for di-rect national defense or essential to thehealth and safety of the nation.

DistributionDistribution of general merchandise

showed less than the customary seasonal risein September, following an unusually largevolume of sales in August. During the pastthree months sales have been larger than inthe corresponding period of any previousyear. In the first half of October sales at

DEPARTMENT STORE SALES AND STOCKS

1935 !936 1937 1938 1939 1940

Federal Reserve indexes of value of sales and stocks, adjustedfor seasonal variation, 1923-1925 average = 100. By months, Jan-uary 1935 to September 1941.

department stores declined from the peakreached in late September when there wereconsiderable consumer purchases, particu-larly of articles subject to higher taxes onOctober 1.

Loadings of revenue freight in Septemberincreased less than seasonally, particularlythose of miscellaneous freight, which havebeen high in recent months, and loadings ofcoal, which were curtailed during part of themonth by work stoppages at some mines.Shipments of forest products declined con-siderably from the high August level.

Commodity PricesPrices of industrial products continued to

advance in September and the first half ofOctober and Federal price ceilings were an-nounced for additional commodities, includ-ing leading types of lumber, coke, wastepaper,paperboard, acetic acid, alcohols, and cardedcotton yarns. In some cases these ceilingswere below previously existing market quo-tations. Price advances were permitted,however, for some other commodities underFederal control. Prices of cotton and offoodstuffs increased further in the first halfof September, but subsequently declined, ow-ing partly to seasonal influences. On Thurs-day, October 16, prices of these commoditiesdropped sharply.

Bank CreditCommercial loans at member banks con-

tinued to rise during September and the firsthalf of October, reflecting in part defensedemands. Increases were substantial bothin New York and in other leading cities.Holdings of United States Government obli-gations decreased, mainly at banks in lead-ing cities outside of New York. Excess re-serves of member banks showed little changein this period.United States Government Security MarketFollowing a slight decline in the first half

of September, prices of long-term Treasurypartially tax-exempt bonds increased duringthe latter half of September and in the firstpart of October. The yield on the 2% percent bonds of 1960-1965 reached a new recordlow of 2.01 per cent in October. Prices oftaxable bonds moved within a relatively nar-row range during the period with yieldsslightly above previous low levels.

NOVEMBER 1941 1141


MEMBER BANK RESERVES AND RELATED ITEMSBILLIONS OF DOLLARS

24WEDNESDAY FIGURES BILLIONS OF DOLLARS

24

MEMBER BANKRESERVE BALANCES

TREASURY CASH AND DEPOSITS .

10

2

01935

1935

-

-

f \r

1936 1937

REQl

f

1938

J1RED RESERV

, I EXCESSfm*T

1939

ES ^ ~

ryfRESERVES

1940 1941

-

-

10

2

01936 1937 1938 1939 1940

Latest figures for October 22. See page 1144.

1941


FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICSUNITED STATES

PAGE

Member bank reserves, Reserve Bank credit, and related items 1144Federal Reserve Bank discount rates; rates on time deposits, reserve require-

ments, margin requirements 1145Federal Reserve Bank statistics 1146-1150Reserve position of member banks; deposits in larger and smaller centers. 1151Money in circulation 1152Gold stock and gold movements; bank suspensions; bank debits 1153All banks in the United States, number, deposits, loans and investments. 1154Condition of all member banks. 1155-1156Weekly reporting member banks 1157-1160Commercial paper, bankers' acceptances, and brokers' balances. 1161Money rates and bond yields. 1162Security markets 1163Treasury finance . . . 1164-1166Governmental corporations and credit agencies; Postal Savings System 1167-1169Business indexes 1170-1180Department store statistics 1181Wholesale prices 1182Current statistics for Federal Reserve chart book 1183-1185October crop report, by Federal Reserve districts 1185Member bank earnings. 1186Industrial Production—Major divisions and selected groupings expressed as

points in total index 1187-1189

Tables on the following pages include the principal available statistics of current sig-nificance relating to financial and business developments in the United States. The datarelating to the Federal Reserve Banks and the member banks of the Federal Reserve Systemare derived from regular reports made to the Board; index numbers of production are com-piled by the Board on the basis of material collected by other agencies; figures for gold stock,money in circulation, Treasury finance, and operations of Government credit agencies are ob-tained principally from statements of the Treasury, or of the agencies concerned; data onmoney and security markets and commodity prices and other series on business activity areobtained largely from other sources. Back figures may in most cases be obtained from earlierBULLETINS and from Annual Reports of the Board of Governors for 1937 and earlier years.Current figures compiled by the Board are generally released prior to publication in the BUL-LETIN and press statements will be sent without charge to those wishing them. For a list ofcurrent releases see FEDERAL RESERVE PUBLICATIONS at the back of this BULLETIN.

NOVEMBER 1941 1143


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

DateBillsdis-

counted

Reserve Bank credit outstanding

TJ. S. Governmentsecurities

Total

Ma-turingwith-in 5

years

Ma-turingafter

5years

Allother

ReserveBank

credit

Total

Goldstock

Treas-urycur-

rencyout-

stand-ing

Moneyin cir-cula-tion

Treas-urycashhold-ings

Treas-ury de-positswithFed-eralRe-

serveBanks

Non-mem-

berde-

posits

OtherFed-eralRe-

serveac-

counts

Memberbank reserve

balances

Total Ex-cess1

Monthly averages ofdaily figures:

1940—JulyAugSept

1941—July.AugSept

End of month figures:1940—July 31

Aug. 31Sept. 30

1941—July 31Aug. 30Sept. 30

Wednesday figures:

1940—Dec. 4Dec. 11Dec. 18Dec. 24Dec, 31

1941—Jan. 8Jan. 15Jan. 22Jan. 29

Feb. 5Feb. 12Feb. 19Feb. 26_.__.

Mar. 5Mar. 12... .Mar. 19. . .Mar. 26...

Apr. 2Apr. 9Apr. 16..__Apr. 23 . . . .Apr. 30 . . . .

May 7May 14May 21May 28-_._

June 4June 11June 18June 25

July 2July 9July 16July 2 3 . . . .July 30 . . . .

Aug. 6Aug. 13—.Aug. 20.. . .Aug. 27.. . .

Sept. 3Sept. 10....Sept. 17...-Sept. 24-...

Oct. 1Oct. 8Oct. 15Oct. 2 2 . . . .

12

2,4502,4442,4342,1842,1842,184

2,4482,4362,4342,1842,1842,184

2,1952,1842,1842,1842,184

2,1842,1842,1842,184

2,1842,1842,1842,184

2,1842,1842,1842,184

2,1842,1842,1842,1842,184

2,1842,1842,1842,184

2,1842,1842,1842,184

2,1842,1842,1842,1842,184

2,1842,1842,1842,184

2,1842,1842,1842,184

2,1842,1842,1842,184

1,2021,2011,191951951951

1,2021,1921,191951951951

1,0201,0201,0481,0481,048

1,0481,0481,0481,048

1,0481,0481,0481,048

1,0481,048984984

955955

1,0081,0081,008

1,0081,0081,0081,008

951951951951

951951951951951

951951951951

951951951951

951951951908

1,2471,2441,2431,2341,2341,234

1,2461,2441,2431,2341,2341,234

1,1761,1651,1361,1361,136

1,1361,1361,1361,136

1,1361,1361,1361,136

1,1361,1361,2011,201

1,2301,2301,1771,1771,177

1,1771,1771,1771,177

1,2341,2341,2341,234

1,2341,2341,2341,2341,234

1,2341,2341,2341,234

1,2341,2341,2341,234

1,2341,2341,2341,277

63576411192101

32764610480

675111714988

50676941

31744936

7335

59461005348

43535043

54635563

611086156

41538087455812183

4970121103

2,5152,5052,5032,2982,2842,297

2,4842,5152,4852,2932,2752,264

2,2662,2412,3062,3362,274

2,2372,2542,2562,228

2,2172,2602,2352,223

2,2372,2442,2592,221

2,2442,2352,2862,2392,234

2,2292,2392,2372,231

2,2402,2492,2412,249

2,2732,2492,2942,2482,245

2,2312,2472,2722,281

2,2412, 2552,3162,279

2,2442,2652,3132,291

20,26020,71821,06422,65122,70022,740

20,46320,91321, 24422,67522, 71922, 761

21,82721, 85821,89821,93021,995

22,03422,06622,08922,110

22,12222,13022,14022,179

22, 23722,31822,33522,359

22,38422,41322,42122,48222,506

22, 52522,53822, 56522, 573

22,57922, 59322, 61222,620

22, 62722,64022,65522,66422,673

22,68222,70322,71022,716

22, 72222, 73322, 74122, 749

22, 76122, 77222, 77822, 786

3,0173,0283,0403,1563.1733,188

3,0243,0363,0443,1663,1813,198

3,0743,0773,0813,0823,087

3,0343,0923,0953,097

3,0993,1003,1023,101

3,1033,1063,1043,108

3,1103,1133,1163,1183,122

3,1253,1293,1313,133

3,1363,1383,1423,148

3,1503,1523,1573,1613,163

3,1693,1723,1783,178

3,1803,1853,1883,194

3,1963,2033,2073,214

7,8847,9678,0959,6709,83910,061

7,8838,0598,1519,7329.99510,163

8,5698,6258,7168,8178,732

8,5428,5418,548

8,6278,665

8,725

8,8058,8118,8268,842

8,9448,993

8,9929,071

9,1519,1559,1869,294

9,3949,3939,4339,490

9,7049,6959,6459,6349,697

9,7959,7929,840

10,03410, 03610,04610, 070

10,18310, 23710, 28310, 278

2,2062,2772,2872,3032,3602,379

2,2502,2772,2902,3342,3762,281

2,2042.1972,2042,2132,213

2,2032,1952,1962,200

2,2122,2122,2222,204

2,1922,1962,2082,230

2,2512,2722,2692,2992,283

2,292

2,2802,221

2,2292,2402, 2582,275

2,2762,2912,3092,3202,330

2,3452,3612,3772,378

2,4002,3972,4082,350

2,2592,2412,2222,195

391885781949829476

694810756877906423

255235570481368

220237261258

692622479368

391421913906

1,045813534947

804762477462

9411,0241,081

1,039849954921

839919785772

708456334379

309304259977

1,3161,4511,5351,7741,8391,836

1,3821,5161,5811,7521,8211,838

1,7081,6871.7021,7111,732

1,7401,7421,7501,799

1, 7841,8371,7851,752

1,7721,7481,7211,788

1,7041,7401,7631,8081,830

1,9051,9611,9721,926

1,8521,8091,8551,891

1,8201,7561,7921,7591,748

1,8651,8161,8351,843

1,8341,8431,8361,856

1,9181,8771,920

261262265289286

262261269287284292

278279

284

284283283283

283283282281

280280289

289

288287

285285295295

289289288

287287285285

284283293293

292291292292

13, 73513,40813,64313,12013. 00413,184

13,49813, 54113, 72713,15112, 79413, 227

14.15414,15213, 80413,83714,026

14, 28414, 41414, 41014, 347

13,84213, 87114,02114,175

14,13614, 21113, 74113, 633

13,50613,65613,97913, 50613,524

13,44013,45813, 73213,749

13,20113, 31213,13112,985

13,12512,97113, 22313,11713,097

12,95112,94813,03712,998

12,88413,15813, 32813,273

13, 24013, 29013, 32112, 749

6,7526,4076,5825,1935.0175,116

6,5146,5256,6555, 2154.7965,169

6,8166,7856,3956,4386,615

6,8356,8966,8646,799

6,3066,3316,4406,542

6,4356,4836,1066,011

5,9416.0276,2645.7605,771

5,7115,6895,8555,824

5,4075,4885.3145,145

5,2655,1245,3365,1815,155

5,0185,0275,0584,994

4, 8575,1115,2495,202

5,1935,2095,2344,655

1 Includes industrial advances and bills bought, shown separately in subsequent tables.2 End of month and Wednesday figures estimated.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 available back figures, may be obtained upon request. Back figures are also shown in Annual Report for 1937 (tables 3 and 4) andfor excess reserves in BULLETIN for August 1935, pp. 499-500. Back figures for end of month and Wednesday dates since January 6,1937 on maturitydistribution of security holdings will be supplied on request.



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. 1

Ineffect

beginning-

Advances under Sec-tion 10 (b) of the

Federal Reserve Act

All other

RateNov. 1

Ineffect

beginning-Rate

Nov. 1

Ineffect

beginning-

Advances secured by direct obligationsof the United States (last paragraph ofSection 13 of the Federal Reserve Act)

To banks

RateNov. 1

Ineffect

beginning—Rate

Nov. 1

To others

Ineffect

beginning—

BostonNew YorkPhiladelphia.....ClevelandRichmondAtlantaChicagoBt. LouisM inneapol isKansas CityDallasSan Francisco __.

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

Sept.Aug.Sept.MayAug.Aug.Aug.Sept.Aug.Sept.Aug.Sept.

1, 193927, 19374, 193711, 193527, 193721, 193721, 1937

2, 193724, 1937

3, 193731, 1937

3, 1937

Sept.Oct.Sept.Oct.Sept.Aug.Aug.Sept.Aug.Sept.Aug.Sept.

2, 193710, 19354, 1937

19, 193510, 193721, 193721, 19372, 1937

24, 19373, 1937

31, 193717, 1937

Sept.Aug.Sept.Sept.Sept.Sept.Sept.Sept.Sept.Sept.Sept.Sept.

1,193925, 1939

1, 19391, 19391, 1939

16, 19391, 1939

16, 19391, 1939

16, 193916, 19391, 1939

Apr.Feb.Sept.MayFeb.Apr.Oct.Feb.Oct.Apr.Apr.Oct.

29, 19388, 19341, 1939

11, 193519, 193423, 193816, 193323, 19358, 1938

16, 193816, 193819, 1933

1 Two and one-half per cent to lenders other than banks. NOTE.—Rates applicable to United States Government securities' repurchase agree-ments are as follows: New York, one per cent; Cleveland, Kansas City, and Dallas, one and one-half per cent.

Back figures—See Annual Report for 1937 (table 40).

FEDERAL RESERVE BANK BUYING RATES ON ACCEPTANCES[Per cent per annum]

Maturity

1-15 days i___.16-30 days31-45 days46-60 days61-90 days. . . .91-120 days . . .121-180 days. .

Rate ineffect onNov. 1

In effect be-ginning—

Oct. 20, 1933._..do

.do._do_._do_..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 ftther 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).

MEMBER BANK RESERVE REQUIREMENTS[Per cent of deposits]

Classes of depositsand banks

On net demanddeposits:iCentral reserve city,.Reserve city . _Count ry

On time deposits:All member b a n k s . . .

Aug. 16,1936-

Feb. 28,1937

15WH

4H

Mar. 1,1937-

Apr. 30,1937

22«4

12H

May 1,1937-

Apr. 15,1938 2

262014

6

Apr. 16,1938-

Oct. 31,1941

22M17^12

5

Effec-tive

Nov. 1.1941 2

262014

61 See footnote to table on p. 1151 for explanation of method of com-

puting net, demand deposits.2 Percentages in this column are double the statutory requirements,

which were in effect June 21, 1917-Aug. 15, 1936.

MARGIN REQUIREMENTSl

Prescribed by Board of Governors of the Federal Reserve System inaccordance with Securities Exchange Act of 1934

[Per cent of market value]

For extensions of credit by brokers and dealers onlisted securities, under Regulation T _.-

For short sales, under Regulation TFor loans by banks on stocks, under Regulation U_.

Apr. 1,1936-

Oct. 31,1937

55(J)

»55

Nov. 1,1937andafter

406040

* Regulations T and U limit the amount of credit that may be extended on a security by prescribing a maximum loan value, which is aspecified percentage of its market value at the time of the extension;the "margin requirements" shown in this table are the difference be-tween the market value (100%) and the maximum loan value.

1 Requirement under Regulation T was the margin "customarilyrequired" by the broker.

» Regulation U became effective May 1, 1936.NOTE.—Regulations T and U also provide special margin requirements

on "omnibus" accounts and loans to brokers and dealers.

NOVEMBER 1941

FEDERAL RESERVE BANK RATES ON INDUSTRIAL ADVANCESRates in effect Nov. 1 on advances and commitments under

Section 13b of the Federal Reserve Act[Per cent per annum except as indicated by footnote8]

Federal ReserveBank

Boston _.New YorkPhiladelphiaClevelandRichmondAtlanta....ChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco

Advancesdirect to

industrialor com-

mercial or-ganizations

4-6

4-64-63-6

3-64-64-64-6

Advances to or in par-ticipation with financ-

ing institutions

On por-tion forwhichinstitu-tion is

obligated i

32-3

43-6

3-644

3-4

On re-mainingportion i

2-5

4-63-6<")

3-64

4-64-5

Commit-ments

to makeadvances

1-3

1-2

1-2

34-2

i The Federal Reserve Banks of New York, Philadelphia, Cleveland,Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City,and Dallas may charge same rate as charged borrower by financinginstitution, if lower than rate shown.

* Same as rate charged borrower by financing institution.3 One per cent less than rate charged borrower by financing institution.4 One per cent less than rate charged borrower by financing institu-

tion with minimum of three per cent (see note l).5 One-half of one per cent less than rate charged borrower by financing

institution with minimum of four per cent (see note l).• Minimum charge one-fourth of one per cent.

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[Per cent per annum]

Savings depositsPostal savings depositsOther time deposits pay-

able in:6 months or more.90 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. Under Regulation Q the rate payable by a member bank maynot in any event exceed the maximum rate payable by State banks ortrust companies on like deposits under the laws of the State in whichthe member bank is located.

1145


PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS

[In thousands of dollars]

Wednesday figures

1941

Oct. 22 Oct. 15 Oct. 8 Oct. 1 Sept . 24 Sept. 17 Sept . 10 Sept. 3

End of month

1941

Sept . A u g

1940

Sept.

Assets

Gold certificates on handand due from U. S. Treas-ury

Redemption fund—F. R.notes

Other cash

20, 560,029 20, 525,032 20, 501,030

13,289267, 533

14,153250,498

14,010243,391

20,466,031

14,729252,404

20,362,029 20,297,032 20, 297,032 20, 299,032 20, 446,030 20, 299,030

15,743269,462

16,386267,065

16,386262,666

15,146235,953

14,729250,885

15,146256,847

18, 928,300

11,789331, 586

Total reserves _ 20,840,851 20,789,683 20,758,431 20,733,164 20,647, 234 20, 580,483 20, 576,084 20, 550,131 20,711,644 20,571,023 19,271, 675

Bills discounted:For member banksFor nonmember banks,

etc

3,545 7,762 10, 771

200

10,869

200

11,317

200

10,684

200

13,405

200

12, 219

200

10, 768

200

10,814

200

4,631

410

Total bills discounted.

Industrial advancesU.S. Government securities:

DirectBondsNotes

Guaranteed

3,545 7,762 10,971 11,069 11,517 10,884 13,605 12,419 10,968 11,014 5,041

9,570

1,402,200777,300

4,600

9,273

1,359,200820,300

4,600

9,087

1, 359,200820,300

4,600

8,902

1, 359,200820,300

4,600

8,964

1,359,200820,300

4,600

1, 359,200820,300

4,600

9,701

1, 359, 200820,300

4,600

9,681

1, 359, 200820,300

4,600

8,918

1, 359,200820,300

4,600

9,801

1, 359, 200820,300

4,600

8,604

1,312,0001,115,000

6,600

Total U. S. Govern-ment securities, di-rect and guaranteed.

Other Reserve Bank creditoutstanding

2,184,100

93,367

2,184,100

111, 770

2,184,000

60,677

2,184,100 2,184,100

74,169

2,184,100

111, 796

2,184,100

47,828

2,184,100

34,878

2,184,100

60,480

2,184,100

70,355

2,433, 600

37,881

Total Reserve Bankcredit outstanding...

Liabilities

F. R. notes in actual circu-lation

2,290, 582 2,312,905 2,264,835 2, 243, 709 2,278,750 2, 315,676 2,255, 234 2, 241,078 2, 264,466 2, 275,270 2, 485,126

7, 352,047 7, 350,851 7,299,505 7,255,733 7,164,250 7,147,456 7,129,940 7,117,836 7, 233,999 7,079, 505 5,449,878

Deposits:Member bank—reserve

accountU. S. Treasurer—general

accountForeignOther deposits

12,748, 587 13, 321,390 13, 290, 448 13,240,448 13, 273,084 13, 327,926 13,158, 335 12,884, 323 13, 227, 293

977,1781,140,505

659,405

258,8141,188,259

731,908

304,0231,165,164

711,401

308,7481,184,983

733, 445

378,9561, 111, 359

744,984

333,7621,126,450

709,232

455,6911,143,825

698,933

708,4651,152,015

681,726

422,8801,114,080

724,333

12, 794, 227

906,1901,136,350

684,477

13, 726,906

755,7471,054,790

525,865

Total deposits.. 15, 525,675 15, 500,371 15, 471,036 15,467, 624 15, 508,383 15,497,370 15,456, 784 15,426, 529 15,488, 586 15, 521,244 16,063, 308

Ratio of total reserves to de-posit and F. R. note lia-bilities combined (percent) 91.1 91.0 91.2 91.2 91.1 90.9 91.1 91.2 91.2 91.0

MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES

HELD BY FEDERAL RESERVE BANKS

[In thousands of dollarsl

Bills discounted:Oct. 1 . . . . .Oct. 8Oct. 15Oct. 22

Industrial advances:Oct. 1Oct. 8Oct . 15Oct. 22 .

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

Oct. 1Oct. 8Oct. 15Oct. 22 -

Total

11,06910,9717,7623, 545

8,9029,0879,2739,570

2,184,1002,184,1002,184,1002,184,100

Within15 days

8,3398,9236,2151,753

2,5492,5752,5692,816

16 to 30days

1,111761669156

312321332390

31 to 60days

1,214997536522

170167187421

61 to 90days

250143139360

438569649423

43,00043,00043,000

91 daysto 6

months

150142191706

878902896877

84,80084,80084,80084,800

6 monthsto

1 year

55

1248

1,4841,4881,4951,572

66,20066, 20066, 20066, 200

lyearto

2 years

1,6801,6781,6981,636

208,200208, 200208,200208,200

2 yearsto

5 years

1,3911,3871,4471,435

548,300548, 300548, 300548,300

Over5 years

1, 233,6001, 233,6001, 233,6001,276,600



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

Total BostonNewYork

Phila-del-phia

Cleve-land

Rich- At-lanta Chicago St.

LouisMin-neap-olis

Kan-sas

CityDallas

SanFran-cisco

Assets

Gold certificates on handand due from TJ. S.Treasury:

Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Redemption Fund—Fed-eral Reserve notes:


Other cash:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Total reserves:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Bills discounted:Secured by U. S. Gov-

ernment obligations,direct and guaran-teed:


Other bills discounted:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Total bills discounted :Sept, 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Industrial advances:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

U. S. Government securi-ties, direct and guaran-teed:

Bonds:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Notes:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Total U. S. Governmentsecurities, direct andguaranteed:


20, 297,03220,362,02920.466,03120, 501,03020.525,03220,560,029

16, 38615,74314,72914,01014,15313, 289

267,065269,462252,404243, 391250,498267, 531

20, 580,48320,647, 23420, 733,16420, 758,43120, 789,68320, 840, 851

165,291186,757172,081197,660202,609240, 767

4,!4,8534,7574,7214,6774,634

27, 21927, 58827,43526, 34025, 61026, 382

1,197, 3931, 219,1981, 204, 2731, 228, 7211, 232, 8961, 271, 783

1,6101,92011,59111,351

9,2749,5979,409

150150

9,3806,2752,194

10, 88411,51711,069

200200

10, 9717,7623,545

8,8968,9648,9029,0879, 2739,570

363, 800363, 800363,800363, 800363,800406, 800

820, 300820,300820, 300820, 300820, 300777, 300

2,184,1002,184,1002,184,1002,184,1002,184,1002,184,100

350350

1,4361,6671,6671,6611,6551,895

99, 28699, 286105, 744105, 744105, 744109,078

59, 71959,71963, 60463, 60463, 60460, 270

159,005159,005159,005159, 005159,005169, 348

8,466,8,482,

882 1408 1

i, 122 1., 285,,288,142 1

, . 1,269,8,429,686 1,280,429

1,294,225I) 495,112 1, 293, 518 1

6,641

,562,934, 567,634,619, 5851,615,6321,647,605"., 663,678

1,7731,6581,2991,1701,009852

60,04264,41654,70755, 77150,13657,147

8, 528,6978, 548,4828, 542,6478,486, 6278,437, 4228, 553, 111

1,2401,4151,1551,125925595

8,1308,4818,4508,4775,209

25

9,3709,8969,6059,6026,134

1,1831,0831,0811,0861,0861,096

384,113384,113353, 624353, 624353, 624364, 773

231,036231,036212, 697212, 697212, 697201, 548

615,149615,149615,149615,149615,149566,321

1,015968821765695629

17, 53116,40717, 22316,39417, 29217,466

1, 303,6681, 305, 5171, 287, 9581, 297, 5881,312,2121,311,613

81551631085858

19191919

271741821275858

3,6983,6693,6233,6233,6093,573

107, 301107, 301107, 412107, 412107, 412110,798

64, 54164, 54164,60564, 60564, 60561, 219

171,842171,842171, 842171,842171, 842172,01

920871729679620560

17,42522,38817,04118, 21415,67819,553

1, 581, 2791, 590,8931, 637, 3551, 634, 5251, 663, 9031, 683, 791

100100100100100200

565656563752

156156156156137252

255247219213222211

141, 895141, 895134, 809134, 809134,809139,060

85, 34885, 34881,08481,181,08476,833

227, 243227, 243227, 243227, 243227, 243215,893

735, 905 495, 286 3,428, 338 550,443 340,743, 755 499,933 3,459,700 "'"747,653 497,438 3,498,'""779,620 506,105 3,458,790,663 514,241 3,427,772, 653 508,355 3, 341,

1,454, 903,436,838,440, 569

055 356,464 1,458, 537227 573,860 346', 979 506,176 356,153 1, 479,0171,465,341

687 480, 557549,414 334,198 483,462

028 550,915 342, 388 488,781242 569,779 347,821 501,"""

330,684329, " •352,

788 1038 1

043 573,368 345, 861500,676 359,657

1,7751,4771,5661,2631,8841,491

15.37012,98915,48511,01216, 92715,414

464442374350321292

21,18618,66517, 73215,87419,63418, 708

1,2181,1751,011959896837

38, 25739, 75437,41435,91135, 79837, 918

902893861848835822

11,01511,57515,06813, 50517, 56217, 728

552548534526520514

5,4235,3594,4234,9154,9854,834

478470445433422410

11,93512, 36010, 89811,21011, 62312, 912

731725708687679671

11,75510, 2408,7329,70310, 44511, 503

753,050 516,936 3, 467, 813 562, 360 346,662 492, 970 343,170758,221 519,040 3,764, 704 515, 544 3,791, 895 522, 329809,474 534,1969, 558 527, 355

3, 500,629 561"i, 536,453 566,3,495,112 584,132 353!3, 463,9213, 379, 798 59lj 918 351, 209 513,

882 340,105 496, 292 340, 753 1844 347, 345

1,262592, 257 352, 484

500,124512, 698 366;518, 221

,998

361,478"», 854

367, 277371,831

1591096

810803801801793792

74, 72074, 72084, 29384, 29384, 29386,951

44, 94344, 94350,70350, 70350,70348, 045

119,663119, 663119, 663119, 663119,663134,996

565627364242

161160174176265271

57, 48457, 48458, 22758, 22758, 22760, 063

34, 57734, 57735,02235, 02235,02233,186

92,06192,06192,06192, 06192, 06193, 249

242424492525

349332342336332336

166, 999166, 999186, 227186, 227186, 227192,099

100, 446100,446112,012112,012112,012106,141

192142

200300400

65,!65, 88669, 38269, 38269, 38271, 570

39, 63039, 63041, 73141, 73141,73139, 544

267, 445267, 445267, 445267,267,298, 240

105, 516105,516105, 516

445 105, 516445 105, 516

Hi, 114

6464

114130

482466462463493480

38, 47738,47740, 59040, 59040, 59041, 870

23,14423,14424, 41424, 41424, 41423,134

61, 62161, 62161, 62161,62161, 62165, 004

1010202030140

162165242241266

1, 295

172175262261296

1,435

819696

66,2

58, 65358, 65358, 65360,502

39,86439,86435, 27935, 27935,27933, 430

106,144106,144106,144106,144106,14493,932

891271421245154

617577522522512

687744719646573566

298298294294284283

53, 59453, 59447, 80047, 80047, 80049, 307

32, 23532, 23528,75228,75228, 75227, 244

85, 82985, 82985, 82985, 82985,82976, 551

1,6751,6631,6241,6091,5951,577

29, 90727, 72126,24624, 54224,80827,968

1, 486, 485, 466, 2221, 468,4391, 484, 6881, 505,4201,494,886

50

33

15151515

53

651515153353

143143143138138137

107, 765107, 765117,039117,039117,039120, 729

64, 81764,81770, 39770, 39770,39766, 706

172,582172,582172, 582172, 582172,582187, 435

NOVEMBER 1941 1147


Federal Reserve Banks—Continued[In thousands of dollars]

Assets—Continued

Total bills and securities:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Due from foreign banks:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Federal Reserve notes ofother banks:


Uncollected items:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Bank premises:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Other assets:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Total assets:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Liabilities

Federal Reserve notes inactual circulation:


Deposits:Member bank—reserve

account:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

U. S. Treasurer—gen-eral account:


Foreign:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Other deposits:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Total

2, 203,:2, 204, 5812,204,0712, 204,1582, 201,1352,197,215

474747474747

41,90039,42237, 71838, 71740, 67438, 271

1, 296, 599956, 918

1,058,511896,730

1, 433, 5991,072,061

40, 66240, 78140,73240, 75440, 84040,983

42, 36943, 22144, 40644,94444,11844,417

24, 205, 94023, 932, 20424,118, 64923, 983, 78124, 550, 09624, 233, 845

7,147,4567,164, 2507, 255, 7337, 299, 5057,350,8517, 352,047

13, 327, 92613, 273, 08413,240,44813, 290, 44813,321,39012, 748, 587

333, 762378,956308, 748304,023258.814977,178

1,126,4501,111,3591,184, 9831,165,1641,188, 2591,140, 505

709,232744, 984733,445711,401731,908659, 405

Boston

160,441160, 672171,015171,009171,353171,593

333333

1,6251,2021,1061,1101,0761,248

123,99292,096105,08290,155130, 582102,072

2,7962,7962,7912,7912,7912,791

2,8512,9163,1983,2363,1393,186

1, 489,1011,478, 8831, 487,4681,497,0251, 541, 8401, 552, 676

593, 288595,142601, 472605, 566612,139611,152

676, 430683, 052686, 675696,612709,449666,095

25,40630,75618, 39129, 2949, 853

95, 626

52,04852, 47150, 76150, 67552,95151,795

6,4047,3138,1825,55611,1537,492

NewYork

625, 702626,128577,007577,009573, 541568,037

181818181818

3,9742,9592,7502,9375,2342,708

293,696210, 684255, 999198,787363, 747251, 515

10, 26210,40110, 40410,40410, 40410, 548

11, 26211,69411,31111,47511, 38511, 370

9,473,6119, 410, 3669, 400,1369, 287, 2579, 401, 7519, 397, 307

1,859, 5591,859, 7481,878, 3091,877,4691, 895,1911,888, 986

6,138, 5946,098, 5915, 989,4645, 994,1165,979,0745, 757, 623

56, 76582,25554,12053, 85329,273413,929

440,395434, 402510,632458,727458, 833442, 664

595, 809624,012610,877596, 746582, 909543, 289

Phila-del-phia

175, 567175, 685175,822175, 767175,684175,648

555555

1,4051,4171,4281,4451,1321,483

83,49762,18270,77559,49092, 56769,053

4,8564,8564,845

4^8674,867

3,5713,6003,6043,6613,5693,637

I, 572, 5691, 553, 2621, 544,4371, 542, 8231, 590,0361, 566,306

499, 550500, 994503, 779505, 567509, 321509,459

801, 763804, 086786,399801,080800,162767, 547

24, 09832,26229, 30219,06521, 55265,032

107,320105,712105, 561111, 007114,514109, 361

16,45014, 26514, 75113, 64821,18112, 960

Cleve-land

227, 654227, 646216,268216, 262216, 252216,356

444444

1,1,9142,1891,2,5882,219

164,100116, 901134, 642103, 362172,852127,001

4,4884,4764,4764,4764,4764,463

4,4,8544, 7654,8514,7344,766

1,984, 3411,946, 6881, 999,6991, 965, 3492, 064,809 12,038,600 1

682, 867686, 852691, 566696,136695,903

974, 332969, 579985, 432976,769

1,009,139967,050

15, 78824,07438. 82731, 54523, 50590, 253

101, 78S100, 263100,120105, 285108, 611103, 723

27, 51028, 62328, 73028, 62338, 39630,984

Rich-mond

120, 519120, 512135, 806135, 806135, 789135, 788

22222

14, 57514,23514,63315, 01113,82213, 754

108,61683, 95986, 71879, 469112, 24886,118

2,7842,7842,7912,7912,8782,892

*2, 5702,5982,9192,9432,892

360, 629363, 393375, 661382, 357390,164388,100

439,687 304.455.318458,699 296,480,165483, 452452. 421

28, 26018.47320, 58217.47419, 32935, 764

47, 57546,86246, 79549, 20950,76448,479

6,0967, 4017,0126,3237,4226,890

At-lanta

92, 27892, 27793, 45093, 46193, 55693, 562

222222

2,3343,3191,9152,6592,9062,706

51, 57138, 56743,61341, 55458,13545,101

1,9631,9621,9591,9591,959

1,7731,8111,8791,11,8421,865

1,002,116 666,982,311 """

1,007, 5731,027,917 663,,077,105 692,596 3,, 031,042

i, 857656.658,362!, 843!, 596

672, 549

,464814

f, 511305,039308. 819286,252 1

15,81023,89417,18611,03120, 28933, 729

38, 72438,14438,08940,05441,31939,460

7,8909,4228, 2868,3708,1797,790

Chicago

267,818267,801298,605298, 624298, 596298, 601

2,6132,5342,7992,9462,5842,467

198,266137,087145, 554123, 470226,019156, 436

2,9972,9972,9912,9912,9912,991

4,9024, r ~5,6395,7385,6405,640

3,944,415 745,978 3,916,017 7:

3,992.0473, 928, 887 748, 831

', 7573, 845,939

235,762 1,515,496 270,236,679243,004247,185246,942246, 796 1

,518,1, 529, 7571, 535, 280 286,,543,760, 550, 355

35,42942,06035,75943, f "33,78870, 425

132,767130,778130,591137,329141,667135,291

4,9955,0736,0205,368

11, 3474,792

St.Louis

105,708105, f ~111,119111,319111,413111, 528

111111

2,3042,4062,2732,1672,2192,633

70, 52347, 41444, 77546, 79361,95247,439

2,2952,2942,2872,2872,2862,285

1,9331,9732,1182,1322,067

1,124'21,628729,417

772,195757,

270,120673 274,451

281,

288,289, 657

2,024,2,024,640 319,2,063, 3432,036,486 339,2,001, 325 346,028 176,891, 370 r

324,',164

324,541\ 034

334, 695 157,

33,41628,04824, 53021, 70623,18732, 259

33,19232, 69432, 64834, 33235,41133,823

8,60210,2129,40010, 2588,608

Min-neap-olis

62,19262,176 106; 41565, 53065, 53165, 61165, 614

1,0481,8251,0651,029

861905

30,84826, 42124,17826,97430,17427, 759

1,3481,3481,3451, 3451,3451,345

1,2321,2511,3531,3551,3231,350

182, 327182, 501

670 184,471186,493

742 186, 380187, 722

23,01021,32720,39618, 83617,91538, 741

24,34123,97623,94225,17725, 97224,803

5,8306,3156,7406,6879,4516,493

Kan-sas

City

106, 397

94,29094,28994, 32495, 463

4,3743,6113,5573,2504,0003,405

49, 58146, 63547,02039, 21455,17048,415

2,9162,9162,9002,9002,9002,900

2,0162,0351,8631,8891,8451,853

443, 330 658, 255 478, 023433,126 657, 905 467.440,816 549,755 478,430449,496 354, 241 480, 298451, 798 676, 461 501,013

902 448,182 666,035 493, 327

237,410237, 719241, 311242, 528242, 332242, 679

313 171, 702 300,633 252,677167, 514 299,065 254, 664174, 354 292,065 261, 282178,953 304,170 260,672

.,508 308,906 263,090', 469 304, 974 253,788

24, 99327.82124,12320, 96225, 85828.822

32,08531, 60531,55933,18834, 23632, 695

2,6115,9424,754

3'2842,638

Dallas

86, 81486,87177, 56577, 49277, 40977, 400

111111

857625531876

1,305964

44,34836,86136,10832, 36652, 30840, 392

1,1661,1661,1581,1581,1581,158

1,6671,7101,5891,5511,5551,581

113,421114,849121, 373123,003122, 373122, 345

24, 68120,76214, 78117,12117,75031,674

32,08531, 60531, 55933,34, 23632, 695

730702

1,538919

1,2401,262

SanFran-cisco

172, 790172,740187, 594187, 589187, 607187,625

444444

4,8053,3753,4723,4182,9473,779

77, 56158, 11164,04755,09677,84570, 760

2,7912,7852,7852,7852,7852,785

3,7623,8164,1684,2344,1274,141

1,748,1981, 707,0531,730,5091, 737,8141, 780, 7351, 763,980

599,006597, 234608,074616,023617, 371618,893

918,826898,597921,683917, 352935,438909,303

26,10627,22410, 75119,48016, 51540,924

84,13082, 84782,72686, 99389, 73985, 716

26, 50927, 31426, 34325, 97527,08826, 207

* Less than $500.



Federal Reserve Banks—Continued[In thousands of dollars]

Liabilities—Continued

Total deposits:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Deferred availability items:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Other liabilities, includingaccrued dividends:


Total liabilities:Sept. 17Sept. 24Oct. 1 .Oct. 8Oct. 15Oct. 22

Capital Accounts

Capital paid in:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Surplus (section 7):Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Surplus (section 13b):Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Other capital accounts:Sept. 17Sept. 24Oct. 1Oct. 8Oct. 15Oct. 22

Total liabilities and capitalaccounts:


Commitments to make in-dustrial advances:

Sept. 17Sept. 24Oct. 1Oct. 8 -.Oct. 15Oct. 22

Total

15, 497, 37015, 508, 38315,467, 62415,471,03615, 500, 37115, 525, 675

1,184, 850882, 796

1, 018,920836,100

1, 321, 876978, 741

3,4733,9503,6924,3074,1864,

23, 833,14923, 559, 37923,745,96923,610,94824,177, 28423, 860, 851

141,045141,013141,043141,155141,173141, 248

157,065157,065157,065157, ""•

157,065157,065

26, 78526, 78526, 78526, 78526, 78526,785

47, 89647,96247, 78^47,82847,78947, 896

24, 205,94023, 932, 20424,118,64923,983,78124, 550, 09624, 233,845

11, 48712, 58612, 70913, 67313,58013, 574

Boston

760,288773, 592764,009782,137783,406821,008

109,52384.13895,90383.139120,27694, 507

408401493597426405

1,463, 5071,453,2731, 461, 8771,471,4391, 516, 2471, 527,072

9,3619,3619,3629,3619,3619,362

10,'10,90610, 90610,90610, 90610,906

2,8742,8742,8742,8742,8742,874

2,4532,4692,4492,4452,4522,462

1,489,1011, 478,8831, 487,4681,497,0251, 541, 8401, 552, 676

1,061810810

553

NewYork

7, 231, 5637, 239, 2607,165,0937,103,4427,050,0897,157, 505

252,859181, 549227, 077176,496326,437220,806

9121,068972

1,1291,2931,233

9, 344, 893 19, 281, 625 19, 271, 4519,158, 536 19, 273,010 19, 268, 530 1

51, 72451, 72551, 73451, 75951, 77251, 772

56, 44756,44756, 44756,44756, 44756,447

7,0707,0707,0707,0707,0707,070

13,47713,49913,43413, 44513, 45213,'

, 538,,518,1, 509,957,508,341,555, ", 531, 819

9, 473, 6119, 410, 3669,400,1369, 287, 2579,401, 7519,397, 307

516516514515507463

Phila-del-phia

949,631956,"'"936,944, 800957,409954,

325 1.013 1,

900 1

88,56361,11469,89757, 67188, 53467,069

299350268

1,119,418'., 122, 539, 153,1091,142,2221,179,651, 192,010

391

043 1783 1

552 2,

,949,816,912,1621,965,1551,930,"1,030,269 1, ,2, 004, 055 1, 014, 926 658, 898 3,

11,90811, 86011, 86011, 85911,85911, 860

15,14415,14415,14415,14415,14415,144

4,3934,3934,3934,3934,3934,393

3,0813,0823,0833,0863,0883,090

2,0942,1222,1962,2542, 2652,270

Cleve-land

149,147106, 359124,84696,595154,079115,713

397348423403429

14, 59914, 59914, 60014, 60114,60014, 603

14, 32314, 32314, 32314, 32314, 32314, 323

1,0071,0071,0071,0071,0071,007

4,5964,5974,6144,6124,6104,612

1,2421,1901,2291,2241,2441,228

Rich-mond

521,618 366, 888 2,197, 696 399,319 224,883' 1219,132

225,432 352, 501

360, 322 310,173 1,055, 571388, 508 219,132 364,433 307,733 1,035,982391,931 225,432 352, 501 309,160 1,041,503

364,494 2, 222,839 404,472 229,653 362,106 311,900 1,049,800967 378,306 2,188,127 414,890 229,846 372, 284 316, 316 1,068, 780__. 12Q 319

528,054 370, 274 2, 202, 551088 360,072 2, 235,713 391533,

553,171560, "~543, 554 367, 231

103,51074,45182,46675, 894109,48482,879

325370356395380393

986,082 653, 204

991, 5711,011,817 650,193,060,

733,709, 748 423,429

3, 896, 705966; 268 643, 319 3, 868, 312

644, 713 3, 944, 326 717, 553 431,1283, 881,162 736, 959 439, 806

995 678,948 3,952,013 760, 337 442,1191,798,184

5,5425,5485, 5495,6395,6395,639

5,2475.2475. 2475. 2475.2475,247

3,2443,2443,2443,2443,2443,244

2,0012,0041,9621,9701,9801,986

1, 572, 569 1,984,341 1,002,116 666, 8571, 553, 262 1,946, 688 982, 3111, 544,437 1, 999,699 1,007,1, 542, 823 1, 965, 349 1,027,9171, 590,036 2,064, 809 1,077,105 692, 596 3,1, 566, 306 2, 038,600 1,031,042 672, 549 3, 845,939 757,902

741742788860851

1,226

At-lanta

,931:,472:,890

2,101, 878 409, 385

50,44836, 23841,51938, 38153, 27444, 709

106128118133126162

4,8434,8474,8484,8484,!4,848

5,7255,7255,7255,7255,7255,725

713713713713713713

2,3722,3742,3632,3642,3612, 365

656,658,663,

978 3,573 658, 362 3,

843 3,

1,0441,0441,0441,0411,0411,041

Chicago

183,165146,657178,495122,606219, 703145,473

348431361437423478

15,08715,09115,09815.09415.09515,097

22, 82422, 82422, 82422, 82422, 82422,824

1,4291,4291,4291,4291,4291,429

8,3708,3618,3708,3788,3968,405

669635692

1,6001,6001,600

St.Louis

227, 506

63,68746,64943,81345,87156, 56846, 841

123140139148137144

249 433, 639 646,959 466,646, 586 456,

746,027

4,3674,368

4^3684,3684,376

4,9254,9254,9254,9254,9254,925

533533533533533533

2,0502,0542,0382,0462,0322,041

659659559559

Min-neap-olis

21,66621,09423, 50625, 75123,120

120130131154142143

438,491

3,0043,0043,0063,0073,0113,011

3,1523,1523,1523,1523,1523,152

1,0001,0001,0001,0001,0001,000

2,5352,5412,5302,5312,5162,528

541 1,720, 511503 1, 679, 371

1, 702,8301, 710,139

, , 1, 753, 064654, 733 481,803 1, 736, 313

638, 453 466, 955642, 923 468,827665,180 489, 550

3, 944, 415 745,124 443, 330 658,255 478,~i, 916,017i, 992,047i, 928,887:, 999, 757 772,195 451, 798 6:;, 845,

Kan-sasCity

49,i44,27944, 50338,14450,40542, 765

146155138145159160

4,5504,5504,5514.5524,5524,553

3,6133,6133,6133,6133,6133,613

1,1381,1381,1381,1381,1381,138

1,9952,0182,0002,0151,978I,1""

,023721, 628 433,126 657,905 467,987729,417 440,816 649, 755 478,430748,831 449,496 654,

448,182 666, 035 493^

4,24176,461

371,5011,5011,5011,5011,501

Dallas

42, 80833, 76336, 27133, 75350,70139, 879

139158151171160160

4,2964,2964,2964.2964,2964,356

3,9743,9743,9743,9743,9743,974

1,2631,2631,2631,2631,2631,263

1,9491,9511,9421,9381,9301,931

480,501,013

., 32'

SanFran-cisco

65,75045,93353,03644,04466, 66454,980

184222217272249290

11, 76411,76411,77111.77111,77111,771

10, 78510, 78510, 78510,78510,78510, 785

2,1212,1212,1212,1212,1212,121

3,0173,0123,0022,9982,9942,990

1, 748,1981,707,0531, 730, 509

298 1,737, 8141, 780, 7351, 763,980

3,3273,3153,2253,1613,1553,082

NOVEMBER 1941 1149


INDUSTRIAL ADVANCES BY FEDERAL RESERVE BANKS[Amounts in thousands of dollars]

Date Oast Wednesday ofeach month)

Applicationsreceived

Number Amount

Applications underconsideration

Number Amount

Applicationsapproved

Number Amount

Advancesout-

standing^(amount)

Commit-mentsout-

standing(amount)

Approvedbut not

com-pleted «

(amount)

Repaid,expired,or with-

drawn byappli-

cant, etc.(amount)

Partici-pations

1 out-standing3

(amount)

1934—Dec. 26_.1935—June 26_.

Dec. 31 4.1936—June 24..

Dec. 30._1937—Mar. 31..

June 30__Sept. 29..Dec. 29_.

1938-Mar. 30_.June 29 _Sept. 28.Dec. 28_.

1939—Mar. 29.June 28Sept. 27.Dec. 27_.

1940—Jan. 31..Feb. 28 .Mar. 27.Apr. 24_.May 29..June 26..July 31..Aug. 28_.Sept. 25.Oct. 30..Nov. 27.Dec. 31 *.

1941—Jan. 29Feb. 26..Mar. 26.Apr. 30..May 28_.June 25 .July 30._Aug. 27_.Sept. 24.Oct. 225.

4,3866,3257,4378,0068,2478,3448,4308,4748,5348,7088,9769,1029,1889,2499,3089,3669,4189,4339,4569,4769,4879,5049,5129,5369,5469,5569,5739,5819,6099, 6339,6599,6829,7199,7939,8179,8559,8919,9129,940

146,972237, 581293,084314,471

333, 300339, 509341,842350, 551358, 936369, 853378,974387,490392, 230395,499402,305405, 225406,097407, 392410,192411,628413,178413, 646415, 599416, 454417,260420,837421,139431, 236435, 474442,712448,506444,985455,868458,092471,035481, 255498,017503,172

2,95511, 3492,8231,8801,2451,3221,263800550

1,29947614624734425537041763219911845337644410740650222

1,92960082335

1,7253514570

2,22011,856

9841,6461,9932,1832,2802,3232,3612,3812,4062,4642,5662,6172,6532,6832,7212,7522,7812,7932,8052,8142,8252,8322,8382,8532,8562,8652,8752,8832,9082,9232,9452,9592,9873,0463,0673,0963,1203,1323,151

49,63488,778124,493133,343139, 829141, 545145, 758146,724150,987154,918161,158168, 380175,013177,895179, 778185,234188, 222188,879190,055192, 665194,096195,404195, 739197,439197, 906

201, 750202,041212, 510214,800223,226228, 732225,849234, 714238, 505

258,154267, 606273, 760

13,58927, 51832,49330,48425, 52623,05923,01921,41520,21619, 37118,44417, 56717,34515, 79815, 25514,45413, 68312, 86012,99712, 72312,00111, 24210,98810,90710, 77910, 77810,4849,8939,1529,4839,4519,5269,1579,63910, 54910, 76110,3599,80810, 411

8,22520, 57927, 64924,45420,95918,61116, 33114,88012, 78013,11013,64913, 59714,16112,64711,17510, 5179,2208,3768,9668,2248,7258, 8528,7628,5828,2388,0787,3517,1065,2265,2075,0667,3158,46412, 34213,07211, 69712,92813, 55113, 574

20,96611,24811, 5489,3818,2267,8981,470537

3,3693,4193,0845,7371,9461,9752,0671,9382,6592,5041,4542,4712,2642,4742,1951,9912,0952,3154,2604,05613,95412, 32520,42419,98613, 03514,1348,09011, 62611, 52010, 25111,840

5,55824,90044,02561,42577, 91085, 21097, 663102, 588107,384111, 193117, 555122,447128,839135,004139, 281146,156151,679154,629155, 574158,110159. 950161,491162, 612164,949165,865167,046169,746171, 394177,792179,021179, 569180,989183, 646186,062192, 783202, 287208,279216, 258218, 886

1,2964,5338,7787,5997,2086,7677,2757,3047,2387,8258,4269,03212, 72212,47112,00012,16910,98110, 51011,06411,13711,15611, 34511,18211,01010,92910, 7499,9099,5926,3868,7648,71610,91611, 54712, 53714,01112, 49615,06817, 73819,049

1 Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in weekly statement ofcondition of Federal Reserve Banks.

2 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 $676,-

000, Oct. 22, 1941.* Tuesday. 5 Latest date for which figures are available.

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

Total Bos-ton

NewYork

Phila-del-phia

Cleve-land

Rich-mond

At-lanta

Chi-cago

St.Louis

Min-neap-olis

Kan-sasCity

DallasSan

Fran-cisco

Federal Reserve Notes:Issued to F. R. Bank by F. R. agent:

Oct. 1Oct. 8Oct. 15Oct. 22

Held by Federal Reserve Bank:Oct. 1Oct. 8Oct. 15Oct. 22

In actual circulation: *Oct. 1Oct. 8Oct. 15..Oct. 22

Collateral held by agent as security fornotes issued to bank:

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


Eligible paper:Oct. 1Oct. 8Oct. 15Oct. 22

Total collateral:Oct. 1Oct. 8Oct. 15Oct. 22

605, 730678,873709,349, 734,850

349,997379,368358,498382,803

, 255,733,299, 505, 350, 851, 352,04'

331,835342, 505339,128348,895

30, 36336,93926,98937,743

472 1

960, 654.976,801983, 066, 978,184

82, 34599,33287, 87589,198

125, 793530,516""1,007534,426

22,01424,94918,68624,967

12,91515,938'22, 663'27,381

26,06324, 37226, 52731, 478

104,231HI, 363L15, 584

24, 23521,87421,19927,484

739,000796,000836,000886,000

9,9999,9406,9462,563

748,99S805,94f842,94i888, 562

601,605,566612,139611,152

655,000655,000655,000655,000

503, 779 686, 852, 878, 3091,877,469 505', 567 mi, 566 382^1,895,191 i """1,

375, 661

509,321509, 459 695,903

696,136 390| 164;,100

350350

655,000655,000655, 350655, 350

1,970,0001,980,0001,990,0001,990,000

9,5209,5176,134620

540,000540,000540,000540,000

1631085858

715,000 425,000425,000425,000450,000

720,000725,000730,000

263,178269,568269,159269,934

20,17422,38322, 21723,138

243,004247,185246,942246, 796

270,000275,000275,000275,000

561,981, 573,743577, 215, 581, 300

32, 22438,46333, 45530,945

1, 529, 7571, 535,2801, 543, 7601, 550, 355

1, 580,0001,600,0001, 600,0001, 620,000

299,195304,91112, 67810,058

17, 52518,44323,93620,401

281, 670286, 468288,742289, 657

309,000319,000329,000329,000

89,951.91, 737.92, 402.93,052

5,4805,2446,0225,330

249,088252,917252, 796252, 862

7,77710, 38910, 46410,183

33, 393.35,19534, 439.35,166

12,02012,19212, 06612, 821

377,851380,811386, 433388,008

69, 77764, 78869, 06269,115

.84, 471

.86, 49r

.86, 380 242, 332

.87,722 f" '•

241, 311242, 528

242, 679 122, 345

121, 373 608,074123, C122, 373 617,!',371

618, 893

715,0001,979, 5201.989, 5171, 996,134 540,058 725,0001.990, 620

540,163540,108 720,000

540,058 730,00C

425,000425,000425,000450,00C

270,000275,000275,000275,00C

1, 580,0001,600,0001,600,0001,620,000

1

309,000319,000329, 000329,014

192,000192,000197, 000197,000

6060

110126

192,060192,060197,110197,126

255,000255,000255,000255,000

256255294

1,395

255,256255, 255255,294256, 395

139,141,141,000141, 000

000 689,000000 694,000

704, 000704, 000

139,000141,000141,000141,000

689,000694,000704,000704,000

i 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, SEPTEMBER, 1941[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 district.. _

Chicago districtSt. Louis districtMinneapolis district..

Kansas City district..Dallas districtSan Francisco district.

Total

Country banks:Boston districtNew York districtPhiladelphia district.

Cleveland district...Richmond districtAtlanta district

Chicago districtSt. Louis districtMinneapolis district...

Kansas City district...Dallas districtSan Francisco district

Total

Grossde-

mandde-

posits

47, 299

16, 8673, 552

1,427289

1,702

2,3701,1011,012

1, 8851,118

507

1,274951

3,051

16,687

1,1931,823

870

872826726

1,231527410

572668474

0,192

Netde-

mandde-

posits i

38, 801

16,1633 146

1,280226

1,445

1,877841701

1,357853375

850602

2,477

12, 883

8631,312

575

557459438

765324256

351417292

6,608

Timede-

posits

12, 545

847489

81149229

735239180

701174

83

156132

2,042

4,902

5691,491

886

743395254

857259281

161105306

6, 307

Reserves withFederal Reserve

Banks

Re-quired

8,068

3,719740

22847

264

365159132

273158

70

156112536

2,500

132232113

1047565

1355245

505550

1,108

Held

13,184

5,5541 218

41670

578

750305195

473239

98

225157830

4,335

248478218

209145107

2658673

9574

2, 076

Ex-cess

5,116

1 834478

18823

313

384146

63

2018128

6845

294

1,836

116246105

1057142

1313529

273923

968

i 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 on p. 1145 for percentages of deposits required to beheld as reserves.

MEMBER BANK RESERVE BALANCES BY CLASSES OF BANKS[Averages of daily figures. In millions of dollars]

Total reserves held:1940—September

OctoberNovemberDecember

1Q41 JanuarvFebruaryMarchAprilM a yJuneJulyAugustSeptember

Week ending (Friday):1941—Sept. 5

Sept. 12Sept. 19—Sept. 26Oct. 3Oct. 10Oct 17

Excess reserves:1940—September

OctoberNovemberDecember...

1941—JanuaryFebruary... _MarchAprilMayJuneJulyAugust ._September

Week ending (Friday):1941—Sept. 5

Sept. 12Sept. 19....SeDt 26Oct. 3

Oct. 17

Allmem-

banks1

13, 64314,04314,13114 04914 33913, 99613, 97913, 60013, 65013, 20113,12013, 00413,184

12, 84413,13613, 32813, 26913, 25613, 29913 337

6, 5826,8646, 8306,6466 8326,4226,3045,8835,8315,3515,1935,0175,116

4,8205,0665,2365 200

P5,194pc 230P5, 240

Central reservecity banks

NewYork

6,7056,8896,9756,9977 1356,8076,9246,5186,2435,9585,8755,6005,554

5,4625,5635, 6025, 5685,4745,4135, 414

3,3243,4653,4933,4433 5053. 1663. 2032,8122,5142,2382,1501,8981,834

1, 7491,8321,8761 8571,7721 7201, 709

Chi-cago

1,2341,2791,2181,1421 0511,033

931966

1,1441,1441,1201,1401,218

1,1221,1691,2391,2651,3101,3071 251

570610546476381347252295434424388403478

386431494525572571523

Re-serve

banks

3,9054,0244,0804,0964 2404,2584,1974,2044,2984,1844,1984,2874,335

4,2364,3264,3824,3574,3644, 4134,464

1,8211,8881,8951,8872,0162,0041,9231,8851,9491,8201,7891, 8241, 836

1, 7631,8311,8701,8501,8531 8841,912

Coun-try

banks >

1,8001,8511,8581,8151 9131,8981,9281,9121,9651,9141,9271,9782,076

2,0232,0782,1052,0792,1072,1662,208

CAA

902897840930906927891933870866892968

922973996968

P996P\ 055"1,096

p Preliminaryi 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

Boston . . . . . _New YorkPhiladelphiaCleveland .RichmondAtlanta.ChicagoSt. LouisMinneapolisKansas CityDallasBan Francisco

Total

\l\ member bank

Gross demand

Sept.

2, 62018, 979

2, 5723,2431,9271,7376,6681 646

9181 8461.6193, 524

47, 299

Aug.

2,58418,7772.5283,1841, 8341,6836,5961. 587

8851, 7941,5673,410

46, 430

s

Time

Sept.

6502,4881,1161,478

634433

2,047434364317238

2,348

12, 545

Aug.

6492,4731,1171,476

629432

2,044431363317239

2,343

12, 513

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

Gross demand

Sept.

2.457i 1, 735

2,2542, 9121,6781, 571

i 2, 6601,334

7231,4561,2613,375

123, 415

Aug.

2,4261 1,651

2,2242,8671.6021, 521

1 2, 6281. 295

7011,4191,2203,271

122, 825

Time

Sept.

527i 1,123

6501,131

430349

1 1,217307197207191

2, 245

i 8. 571

Aug.

527i 1,111

6531,131

427348

11,213306197206193

2,241

i 8, 550

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

Gross demand

Sept.

163377318331249167456312194390357150

3,465

Aug.

158371304317232162441292184375348139

3,322

Time

Sept.

123518466347204

85341127167110

47103

2,638

Aug.

122514464345202

84339126167111

46102

2, 624

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

NOVEMBER 1941 1151


KINDS OF MONEY IN CIRCULATION[Outside Treasury and Federal Reserve Banks. In millions of dollars]

End of month

1940—AugustSeptember ._. . .OctoberNovemberDecember _

1941—January .FebruaryMarchApril _May . . ._JuneJuly . . .August... __ . _. _September..

Total

8,0598,1518,3008,5228,732

8,5938,7818,9249,0719,3579,6129,7329,995

10,163

Goldcertifi-cates

6666656565

646464636363636262

Silverdollars

4748484950

505051515253545556

Silvercertifi-cates

1,6051,6151,6201,6581,667

1,5951,6351,6511,6541,6971,7141,6911,7231,724

Treas-ury

notesof 1890

11111

111111111

Subsid-iary

silvercoin

389394400407412

403406413418426434438445455

Minorcoin

174177180183185

183184186189191194196199202

UnitedStatesnotes

258259264275290

278278277274286300307313314

FederalReserve

notes

5,3345,4095,5415,7055,883

5,8425,9856,1066,2476,4686,6846,8137,0277,181

FederalReserveBanknotes

2222222121

212121212020202020

Na-tionalbanknotes

162161160159157

156155154153152150149148147

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

1940—August..SeptemberOctoberNovemberDecember

1941—JanuaryFebruary _.MarchAprilMayJuneJulyAn gust. __September.

Totalin cir-cula-tion i

8,0598,1518 3008,5228,732

8,5938,7818,9249,0719, 3579,6129,7329, 995

10,163

Coin and

Total

5,7485,8145,9116,0986,247

6,0946,2436,3426.4306,6836,8906,9927, 2377,378

Coin

611618627639648

635641650658669681688700713

small denomination currency

$ 1 3

556566575591610

577582590595615625626641658

$2

3636363839

373838394041404242

$5

1.044, 055

I 0G8107

I, 129

,091,116

132.135. 176

L, 207,215.257

270

$10

1,8581,8761 9081.9772,021

1,9732,0412.0742. 1122,2112.2892, 3342,4302,469

2

$20

1,6441.663I 696

7481,800

,781826858

1,892L9722,0472,0902.1692,227

Large denomination currency 2

Total

2,3132,3402,3922,4262,489

2,5022,5412.5832.6422, 6752,7252,7422.7602,787

$50

495503512523538

540551560573587607615630645

$100

1,0351,0481 0711,0891,112

1,1261,1441,1631,1971,2181,2441,2571,2741,293

$500

213216223225227

230232238241242244244244243

$1,000

493496508512523

530535543550546548544543537

$5,000

2625252630

242424252424242424

$10,000

5152525160

525556565757584646

Un-assort-

ed 2

23334

441222333

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

SHIPMENTS AND RECEIPTS OF UNITED STATES PAPER CURRENCY[By selected banks and financial institutions in New York City.

In millions of dollars]

End of month

1940—AugustSeptember.OctoberNovemberDecember.

1941—JanuaryFebruary...MarchAprilMayJuneJuly.. .AugustSeptember.

Total

Sub-sid-iary

silvercoin

409411415419425

427428429434440447455462469

Minorcoin

178181183187189

191192193194196199202204207

UnitedStatesnotes

347347347347347

347347347347347347347347347

Na-tionalbanknotes

164163162160159

158156155154153152151l.r,0149

1 Includes silver held against silver certificates amounting to $1,929,-000,000 on Sept. 30, 1941 and $1,844,000,000 on Sept. 30, 1940.

Year or month

1937..1938..1939. .1940..

1940—September..OctoberN"ovember__December..

1941—JanuaryFebruary...MarchAprilMayJuneJulyAugustSeptember.

Ship-ments toEurope

21.533.1

110.217.7

.1,1.1

Receiptsfrom

Europe

47.634.49.8

.7

C1)

.'2

.1

.1

.1

0)0)0)0)

Netship-

ments

100.317.0

Netreceipts

1 Less than $50,000.Back figures.—See Annual Report for 1937 (table 38).Description.—See BULLETIN for January 1932, pp. 7-8

26.11.3

.1

.1

.1

0)0)(00)



ANALYSIS OF CHANGES IN GOLD STOCK OF UNITED STATES[In millions of dollars]

MOVEMENT OF GOLD TO AND FROM UNITED STATES1

[In thousands of dollars]

Period

19342193519361937193819391940

1940—MayJuneJulyAugustSeptember.OctoberNovember.December.

1941—January...F e b r u a r y .MarchAprilMayJuneJulyAugustSeptemberOct. 1-29P..

Goldstock

at endof period

8,23810,125

3 11, 2583 12, 760

14, 51217, 64421,995

19, 20919, 96320, 46320, 91321, 24421, 50621, 80121, 995

22,11622,23222, 36722, 50622, 57522, 62422, 67522, 71922, 76122,796

Increasein

goldstock

4,202. 51, 887. 21,132. 51, 502. 51, 751. 53,132.04, 351. 2

439.0754.2499.4450.2331.6261.1295.2194.0

121.7115.4135.4138.569.149.250.544.741.535.3

Netgold

import

Ear-markedgold: de-

creaseor in-

crease (—)

1,133.91, 739.01,116. 61, 585. 51, 973. 63, 574. 24, 744. 5

435.11,163.0

520.0351.6334.1326.0330.1137.2

234.2108.6118.6172.034.830.737.037.065.735.7

82.6.2

- 8 5 . 9-200.4-333 . 5-534. 4—644. 7

- 3 6 . 7-437. 2- 5 5 . 1

67.036.6

-117.9- 3 9 . 5

7.4

- 5 2 . 8- 4 6 . 2

.2- 1 0 . 5- 3 . 8

4.0-27 .7- 3 1 . 2

4 - 46 . 84 - 2 3 . 1

Domes-tic goldproduc-

tion l

92.9110.7131.6143.9148.6161.7170.2

14.211.116.212.513.519.216.616 3

13.512.612.012.812.614.413.612.4

P14.4

p Preliminary.1 Figures are those for United States published in table on p. 1192.

adjusted to exclude Philippine Islands production received in UnitedStates.

2 Figures based on rate of $20.67 a fine ounce in January 1934 and $35a fine ounce thereafter.

3 Includes gold in the Inactive Account amounting to $27,000,000 onDec. 31, 1936, and $1,228,000,000 on Dec. 31, 1937.

4 Gold held under earmark at Federal Reserve Banks for foreign ac-count, in millions of dollars: September 30—2,022.5; October 29—2,045.6.

NOTE.—For back figures see Annual Report for 1937 (table 29).

BANK SUSPENSIONS1

Number of banks suspended:19341935193619371938193919401941—Jan.-Sept.

Deposits of suspended banks(in thousands of dollars):3

19341935193619371938193919401941—Jan -Sept

Total,

banks

3610j11191334

f;

2

57344459554???5

9370153067?301?<W8943436

Memberbanks

Na-tional

14141412

405,313

5077,379

361,341

2561,933

State

1

?4

213

708211629

Nonmemberbanks

In-sured 2

13

10101165

8??,404747?5183

91?763207156721589341503

Notinsured

488366

103

34,985939592480

1,0442,439

346

1 Represents banks which, auring the periods shown, closed tem-porarily or permanently on account of financial difficulties; does notinclude banks whose deposit liabilities were assumed by other banks atthe time of closing (in some instances with the aid of Federal DepositInsurance Corporation loans).

2 Federal deposit insurance became operative January 1, 1934.3 Deposits of member banks and insured nonmember banks suspended

are as of dates of suspension, and deposits of noninsured nonmemberbanks are based on the latest data available at the time the suspensionswere reported.

Back figures—See Annual Report for 1937 (table 76).

From or to—

France -PortugalSweden . .SwitzerlandUnited KingdomU. S. S. RCanada •___MexicoCentral AmericaWest Indies and Ber-

muda .ArgentinaBoliviaBrazilChi le . . . .ColombiaFcuadorPeruVenezuelaBritish GuianaAustral ia . . .New ZealandBritish Oceania _British IndiaNetherlands Indies . . .China and Hong

KongJapanPhilippine Is lands . . .South AfricaAll other countries

Tota l . . 65,707

1941

Sept.

Im-ports

30

2505,652

42, 563495911

10320

1

1,3382,488

4771,634

39267

2,064405

3,1073,694

16

Ex-ports 2

Aug.

Im-ports

109

793,407

10, 845843903

12410

2092,230

22831944870

6,742

354

5,098137

1,947

Ex-ports2

Jan.-Sept.

Im-ports

1321

1,747899

3,44020,295

350,7198,1708,088

6711507717

6,86217,993

2, 3527,4223,377

82051,6472,1312,616,628

829

3,6979,444

32, 203292, 462

3,642

838, 71!

Ex-ports2

1 Figures represent customs valuations which, with some exceptions,are at rate of $35 a fine ounce.

2 Beginning May 1941, the Department of Commerce suspendedpublication of export statistics by country of destination.

Back figures—See table, p. 1192, and Annual Report for 1937 (tables31 and 32).

BANK DEBITSDebits to deposit accounts except interbank accounts


Year and month

1929,.1936_.1937_1938_.1939..1940..

1940—AugustSeptember _OctoberNovember.December..

1941—JanuaryFebruary. _.MarchAprilMayJune _JulyAugustSeptember _.

Total,all

report-ing

centers

982, 531461, 889469,463405, 929423,932445, 863

32,84433, 81239, 69539,08846, 67341, 13335, 78344. 55842, 23743, 66545. 94244, 80842, 85643, 870

NewYorkCity

603,089

197,836168, 778171,382171, 582

11, 60412, 59414,95214,95218, 62615,14713, 26817, 40215, 65716,12417, 28216, 28815, 07915, 654

140otherlead-ing

centers i

133other

centers

331,938219,670235,206204, 745218, 298236,952

18,31418, 26721, 36520,81924, 32722,49819, 45723, 58623, 07423, 79524, 85324, 66024, 03324, 310

47, 50433, 28336,42132,40634,25237, 329

2,9262,9513,3783,3173,7213,4883,0573,5703,5053,7463,8073,8613. 7453,907

1 National series, for which bank debit figures are available beginningwith 1919.

2 Except that 1929 figure is for 128 centers only.Back figures.—Annual report for 1937, page 157. Annual totals, begin-

ning with 1919, by Federal Reserve districts and for individual centersare available for distribution and will be furnished upon request.

NOVEMBER 1941 1153


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.

Call date

1929—June 29Dec. 31

1933—June 30Dec. 30

1936—June 30Dec. 31

1937—June 30Dec. 31

1938—June 30Dec. 31

1939—June 30Dec. 30

1940—Mar. 26June 29.Dec. 31

1941—Apr. 4June 30

NUMBER OF BANKS

Total

25,11024, 630

14, 51915,011

15, 75215, 628

15, 52715, 393

15,28715, 206

15,08215,037

15,00614,95314,895

14,87114, 855

Member banks

Total

8,7078,522

5,6066,011

6,4006,376

6,3576, 341

6,3386,338

6.3306,362

6,3776,3986,486

6,5284 6, 556

Na-tional

7,5307,403

4,8975,154

5,3685,325

5,2935,260

5,2425,224

5,2035,187

5,1785,1645,144

5,1385,130

State

1,1771,119

709857

1,0321,051

1,0641,081

1,0961,114

1,1271,175

1,1991,2341,342

1,3904 1, 426

Nonmemberbanks

Mutualsavingsbanks

611609

576579

566565

564563

563556

553552

551551551

550

Othernon-mem-ber

banks

15,79215,499

8,3378,421

8,7868,687

8.6068,489

8,3868,312

8,1998,123

8,0788.0047,858

7,7937,752

For footnotes see table below.

DEPOSITS, EXCLUSIVE OF INTERBANK DEPOSITS

Call date

1929—June 29. _.Dec. 3 1 . - .

1933—June 30.._Dec. 30 . . .

1936—June 30.Dec. 3 1 . . .

1937—June 30 . .Dec. 31 . - -

1938—June 30. . .Dec. 3 1 —

1939—June 30. __Dec. 30 . . .

1940—Mar. 26.. .June 29..Dec. 31 —

1941—Apr. 4 . . .June 30. __


Allbanks

53,85255,289

37, 99838, 505

51, 33553, 701

53, 28752, 440

52,19554,054

55, 99258, 344

59,01760, 58265,021

65.21167,172

Member banks

Total

32,28433,865

23, 33823,771

34,09835,893

35, 44034,810

34, 74536, 211

38,02739,930

40,57942,03946,007

46,1794 48,076

Na-tional

19,41120,290

14, 77215, 386

21, 98623,107

22, 92622, 655

22, 55323,497

24, 53425, 661

25,91126, 93129, 214

29, 46730, 684

State

12,87313, 575

8,5668,385

12.11212, 786

12, 51412,155

12,19312, 714

13, 49314, 269

14, 66715,10816, 793

16, 7124 17,392

Nonmem

Mutualsavingsbanks

8,9838,916

9,7139,708

10,06010,143

10,21310, 257

10, 29610, 365

10, 52110, 613

3 10, 54410,63110, 658

10, 68410, 641

1

ber banks

Othernonmem-ber banks

12, 58412, 508

4,9465,026

7,1787,666

7,6357,373

7,1537,478

7,4447.801

3 7,8957,9128,356

8,3478,456

For footnotes see table below.

LOANS AND INVESTMENTS


Call date

1929—June 29Dec. 31

1933—June 30Dec. 30

1936—June 30Dec. 31

1937—June 30Dec. 31

1938—June 30Dec. 31 2

1939—June 30Dec. 30

1940—Mar. 26June 29Dec. 31. _

1941—Apr. 4 „June 30

All banks

Total

58, 47458,417

40,07640,319

48,45849, 524

49,69648, 566

47, 38148,929

49, 61650,885

51,13551, 33554,188

56,14757, 945

Loans

41, 53141,918

22,20321, 977

20,67921,449

22, 51422,198

21,13021, 354

21, 31822,169

22,19022, 34123, 741

24, 32225, 312

Invest-ments

16,94316,499

17, 87218,342

27, 77828,075

27,18226,368

26, 25227, 575

28, 29928, 716

28,94528, 99530,448

31,82532, 633

Member banks

Total

35,71135, 934

24,78625, 220

32, 25933,000

32, 73931,752

30,72132,070

32, 60333, 941

34,16334,45137,126

38,9834 40,659

Loans

25, 65826,150

12,85812,833

12, 54213,360

14, 28513,958

12,93813, 208

13,14113,962

13,93913,96915, 321

15, 878416, 729

Invest-ments

10,0529,784

11,92812, 386

19,71719, 640

18, 45417, 794

17, 78318,863

19, 46219, 979

20,22420, 48221, 805

23,1044 23, 930

Nonmember banks

Mutual savings banks

Total

9,5569,463

10,0449,985

9,96110,060

10,18010,187

10,19610,255

10, 34210,314

3 10,22610,18810, 248

10, 27610, 314

Loans

5,8925,945

5,9415,906

5,1055,027

5,0024,996

4,9614,930

4,9314,961

4,9224,9264,959

4,9544,955

Invest-ments

3,6643,518

4,1034,079

4,8565,034

5,1785,191

5,2355,325

5,4115,353

5,3045,2625,289

5,3225,360

Other nonmember banks

Total

13,20713,020

5,2465,115

6,2386,464

6,7786,627

6,4656,604

6,6716,630

3 6,7466,6966,815

6,8896,972

Loans

9,9819,823

3,4043,238

3,0323,062

3,2273,244

3,2313,217

3,2453,246

3,3293,4453,461

3,4903,628

Invest-ments

3,2273,197

1,8411,877

3,2063,402

3,5503,383

3,2343,387

3,4253,384

3,4173,2513,353

3,3993,344

1 Prior to Dec. 30, 1933, member bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000on that date. Prior to June 1940, the nonmember bank figures on some call dates included some interbank deposits not shown separately in a fewState bank abstracts.

8 Prior to December 1938 the figures include loans and investments indirectly representing bank premises or other real estate, now classified incondition reports among "Other assets." The amounts of such loans and investments in December 1938, were approximately $50,000,000 and $100,-000,000, respectively.

3 One bank (with deposits, excluding interbank deposits, of $90,000 000 and total loans and investments of $96,000,000 on Dec. 30, 1939)which, prior to March 1940, was classified as a mutual savings bank, is now included in figures in the "Other nonmember banks" column.

4 Includes two mutual savings banks in Wisconsin and one in Indiana, all admitted to membership since the preceding call date, Apr. 4, 1941.Back figures—See Annual Report for 1937 (tables 48-49)



CONDITION OF ALL MEMBER BANKS-LOANS AND INVESTMENTS[In millions of dollars]

Call date

Totalloansandin-

vest-ments

Loans 1

Total i

Com-mer-cialandin-

dus-trial*

Agri-cul-tur-al?

Openmar-ket

paper

Loans forpurchasingor carryingsecurities

Tobrok-

anddeal-

Toothers8

Realestateloans

Loansto

banksOtherloans *

Investments 1

Total

TJ. S. Government obligations

Total

Direct

Bills Notes Bonds

Guar-an-teed

Obli-gations

ofStatesand

polit-icalsub-divi-sions

Othersecu-rities

Total—AllMember Banks

1929—Dec. 31_.1933—June 30__1938—June 30_.

Dec. 31__1939—June 3O._

Dec. 30__1940—June 29..

Dec. 31—1941—Apr. 4<L__

J u n e 3 0 -Sept. 24?

New YorkCity*

1929—Dec. 31_.1933-June 30._1938—June 30..

Dec. 31—1939—June 3 0 -

Dec. 30_.1940—June 29.

Dec.31_.1941—Apr. 4«-._

June 30..Sept. 24P.

City ofChicago 7

1929—Dec. 31_.1933—June 30. _1938—June 30. _

Dec. 31__1939—June 30._

Dec. 30_.1940—June 29_

Dec.31_.1941—Apr. 46-_.

June 30..Sept. 24*.

Reserve CityBanks

1929—Dec. 31_.1933-June 3O._1938—June 30__

Dec. 31__1939—June 30_

Dec. 30—1940-June 29.

Dec.31__1941—Apr. 48—

June 30..Sept. 24P.

CountryBanks

1929—Dec. 31__1933—June 3O._1938—June 30.

Dec. 31__1939—June 30._

Dec. 30__1940—June 2 9 -

Dec.31__1941—Apr.:46.._

June 30_..Sept.24p.

35,93424, 78630, 72132,07032,60333,94134,45i37,12638,98340,65941,939

8,7747,1338,0138,335

9,82910,91011,69612,49312,929

1,7571,2871,8061,9692,0522,1052,2052,3772,6492,7072,573

12,0298,49211,15011,65411, 75612,27212,16013,01313, 49414,01314, 591

13, 3757,8739,752

26,15012,85812,93813,20813,14113,96213,96915,32115,87816,72917,540

6,6833,4243,1723,2622,9883,2963,014

10,11310.10910,22410, 25710, 82611,14411,44611,846

3,5023,7783,937

1,448677625539644

780846918

9,0844,4824,8534,9635.0045,3295,3655,9316,1656,4986,861

8,9364,2754 , —

4,7374,7835,3865,5386,204

7,270 738

1,4561,4741,7681,8012,025

2,405

319329

417476

609

1,9141,8842,1002,1342,436

2,879 175

4,4444,6054,7684,9875,3095,4315,6075,823

1,0481,0951,1511,1871,267

1,377 555

492442420455450456

2,463953701973731790447642

7,6853,7522,614775736700668652

3,1912,3722,6132,7162,8282,9573,0693,228

71433012012558564243

11, 5154,8576,3972,7282,796

3,0203,230

537 575 635 3,365 44 3,565

9,78411, 92817, 78318.86319,46219,97920,48221,80523,10423,93024, 399

6,88712,34313,22213, 77714,32814,72215,82316,98818,078"" 339

249,113316286441563797652

5202,0493,6533,3892,7202,2232,5432,594

3,0943,7256,2467,2087,786

8,2619,091

1,127 2,631 10,481

2,1282,3402,8313,1443,1213,4863,4873,839

195364141138128120103100

1,257759556787655611320465

2,1451,044717220215188188190

169157132121130133137130

322162859941443225

2, 595937

1,541436440425426443

97 422 186 129 33 503

25161

42

6332511097071666154

305352373616259606284

21 55 20 101

2,0913,7094,8405,0725,7006,0436,8157,5278,1948.7158,991

309610

1,2811,4301,5071,5361,6021,6811,8691,8611,655

1,1122,5513,7403,8574,4834,7725,4866,0446,6257,2687,331

116384981

1,1141,175"., 203,258,307466

222158168315421207

166987

1,3581,142908797

1,0921,245

889926

1,4511,6632,284

2,6502,977

577 1,526 3,415

709894

1,1231,275,324,615,620,751

32061259185153254297

1982313291234176161145

9497535655621701710752

168126163149138155156153

6641089511911511987115

2,7751,340998242221222210207

1,5381,1311,2011,2301,2841,3351,3721,436

25899262012

15

3,6791,6782,3691,0811,1161,1681,2241,307

202 100 198 1,477 1,457

20135173138140163174187

29125212522201721

2,2311,117790243229224208201

1,4621,0551,2691,3531,4021,4771,5441,644

45 4,7052,0052,1261,1491,1801.234i;3081,397

216 17 195 1,739 1,504

2,9444,0116,2986,6916.7516, 9436,7957,0817,3287,5157,730

4,4393,5985,3645,6695,5045.4565,2705,5175,7135,8396,023

,4831,304

1,3682,4834,6585,0184,9915,1944,9475,2045,4405,7005,917

1,2671,4692,964

417 125 803

122109135172134112125138

912056957786387103

165681

1,2681,2241,014819839771

1,1121,5972,6032,9973,0103,3393,0523,281

73 3,858

718740889972969

1,0491,0471,162

3,1273,1593,0303,2693,4563,6273,788

17129971573256343145i433

1,1061,6571,8931,8701,9721,8492,081

374 2,404

579697683725695710694788

1,3931,7442,1432,4482,5542,6922,8883,0133,2062,9843,164

222478394617480579634695771651819

87140141154162177188226190175

448698732808895890981984

1,034979

627581878982

1,0251,0611,0971,1461,1761,1651,189

4,5283,2973,2963,1923,1312,9592,8732,9702,9112,8672,896

758680707698736693695788798796841

96138159176179170167186177

1,128930908

893855

834

2,5461,5491,5221,4531.3511,2361,1441,1021,0811,0471,045

v Preliminary.1 Classifications indicated were revised as of Dec. 31,1938; for explanation see BULLETIN for January, 1939, pp. 22-23, and BULLETIN for April,

1939, pp. 259-264, 332. Beginning June 30,1939, detailed classifications available on June and December dates only.2 Not shown in call reports prior to December 1938, but the total amount of agricultural loans was reported separately on some dates, and the

total amount of "Commercial, industrial and agricultural paper" has been reported by weekly reporting banks since May 1937.3 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.5 Includes Treasury certificates of indebtedness through 1934.6 Breakdown of loans and investments not reported separately.7 Central reserve city banks.Back figures—See Annual Report for 1937 (tables 52-58).

NOVEMBER 1941 1155


CONDITION OF ALL MEMBER BANKS—RESERVES AND LIABILITIES[In millions of dollars!

Re-serveswithFed-eralRe-

serveBanks

2,3742, 2358,0048.694

10,01111, 60412, 27913, 75113, 99213, 53112, 959

827846

3,5174,1044,9755,9156,3867,0727,0576,7155, 857

169232936884897993909

1,1871,051

8151,062

751705

2,2892,3542,7353,1183, 3363,7594,0274,1074,125

627452

1,2631,3531,4031,5781,6481,7331,8571,8941,914

Cashin

vault

558405712746712841862789991837999

6846656861898488

10285

136

1334313526422589422041

156122300321318348364334396361385

321203316322307363389328452372437

Bal-anceswithdo-

mesticbanks J

2,1682,0084,0844,2404,6745,506

«5, 6345,7516,185

«6, 3406,293

179101119109112125

«163119122

e 154131

133203208235235283

6 195242319

6 283262

9471,0021,9511,9402,2102,485

«2,6322,6792,741

fi 2, 8592,793

908702

1,8061,9562,1172,614

«2, 6452,7113,002

8 3, 0443,106

De-mand

de-posits

ad-justed2

16,64712,08920,89322, 29323, 58725, 68126,46127,87730, 42931, 57632,678

4,7504,3586,6987,1688,0128,8999,562

i0, 23511,06211,64511,619

957912

1,5231,6881,6661,7391,5441,8981,9411, 7552,205

5,2293,7646,9347,2147,6548,1768,4008,7749, 581

10,13710, 480

5,7113,0545,7386,2246, 2556,8666,9546,9697,8458,0398,374

Demandi

Indi-vid-uals,part-ner-

ships,andcor-

pora-tions

17,52611,83019,81621,11922,44824, 60424,96526. 39729, 57629, 75231, 429

5,8474,6766,9007,2738.2819,0309,652

10, 28311,35711,62911,895

1,041870

1,3861,5971,5651,6761,5031,7821,9051, 6852,109

5,5473,7086,6687,0347,3318,0027,9788,3729,4689, 552

10,142

5,0912,5764,8635,2155,2725,8965,8325,9606,8466,8867,282

deposits,except interbank

Statesand

polit-innlIVttlsub-divi-sions

1,3351,0872,3142,3862,5322,3212,4992,5292,7242, 9572,940

12896

273280288251219258370302319

4287

221181197167133199174181213

423349812796917813942956995

1,2061,139

742555

1,0081,1281,1301,0901,2051,1151,1841,2691,269

Certi-11(3 U

andcers'

checksetc.*

1,681657662547790563558475913662738

1,180461367195472178260147471302306

3216232922241817272633

300108146170160190150147228171209

16972

126154135172131164187163190

U. 8.Gov-ern-

ment*

143806543790694743725711616523619

2033212313984746867482932

84686836080807990

10895

76312266424415435431422327273341

3911668

143136154147143151114151

Time deposits,except inter*


ships,andcor-

pora-tions

12,2677,803

10,87410,84611,06311,21611, 36811,45911, 68711,83711,898

1,112671694652653693742732768806778

3323584434524714834824894964*6480

4,4332,9414,2384,2334,3204,3624,3864,4224,5064,5404,590

6,3903,8335,4995,5095,6195,6775,7575,8165,9176,0066,049

Statesand

polit-inolicaisub-divi-sions

595300454462441432411410435392397

334

323646433529513827

581

169

171011158

1017

371208262269233240214219226202211

13386

144147145140151147150142143

)ank

Postalsav-

ings *

122788836159515259565455

18110

26

355545

41388

311719141218191919

61285

524440353537333131

Interbankdeposits

Domesticbanks

De-mand

3,5173,0576,0966,5107,0978,507

6 8,7178,8529,581

6 9. 8739,610

1,1981,2552,6142,6872,9923,542

6 3, 6293,8404,032

6 4,0213,948

310259688658746879

6 997949997

81,1511,010

1,6041,3152,5142,7192,9203,516

6 3, 5253,5263,919

6 4, 0234,000

405228380446439571

6 566538633

6 677652

Time

9589

135132142144

6 145134135

6 137138

4022

18 1

19

3059

113108115117

6 115105106

6 108108

67

22232626

«292929

6 2930

For-eign

banks

698146331511607759

»737703706

6 635688

597128291442524695

6672650646

6 577623

33269

129

6 778

6 78

641532576953

6 564451

6 4955

312222

6 222

6 22

Bor-row-ings

879191

1165323333

1798

41

29216

367167

1165323333

Cap-italac-

counts

6,7094,8375,3685,4245,4965,6225,5625,6085,6985, 7545,800

2.1051,5821,5871,593,586

I, 5921,6011,599.615

1,623(\9X

316204249257270250253260270270279

2,0291,5331,7531,7771,8121,8281,8331,8731,9041.9171,940

2,2581,5171,7781,7981,8281,8511,8751,8761,9091,9431,956

Call date

Total—AllMember Banks

1929—Deo 311933—June 301938—June 30

Dec. 311939—June 30

Dec. 301940—Mar. 26

June 29Dec. 31

1941—Apr. 4June 30

New YorkCity 6

1929-Dec. 311933—June 301938—June 30

Dec. 311939—June 30

Dec. 301940— Mar. 28

June 29Dec. 31

1941—Apr. 4June 30City of

Chicago '1929—Dec. 311933—June 301938—June 30

Dec. 311939—June 30

Dec. 301940—Mar. 26

June 29Dec. 31

1941—Apr. 4June 30

Reserve CityBanks

1929—Dec. 311933—June 301938—June 30

Dec. 311939—June 30

Dec. 301940—Mar. 26

June 29Dec. 31

1941—Apr. 4June 30CountryBanks

1929—Dec. 311933—June 301938—June 30

Dec. 311939—June 30

Dec. 301940—Mar. 26

June 29Dec. 31

1941—Apr. 4June 30

i 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."

» 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.

»Includes "Due to Federal Reserve Banks (transit account)," known as "Due to Federal Reserve Banks (deferred credits)" prior to Dec. 31,1935.* U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.6 Central reserve city banks.8 Partly estimated.Back figures.—See Annual Report for 1937 (tables 52-58).



WEEKLY REPORTING MEMBER BANKS-NEW YORK CITY AND OUTSIDELOANS AND INVESTMENTS

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

Date or month

Totalloansandin-

vest-ments

Loans

Total

Com-mer-cial,in-

dus-trial,andagri-cul-tural

Openmar-ket

paper


Tobrok-

ersanddeal-ers

Toothers

Realestateloans

Loansto

banksOtherloans

Investments

Total

U. S. Government obligations

Total Bills Notes BondsGuar-

an-teed

Othersecu-rities

Total—101 Cities1940—September1941—May

June.JulyAugustSeptember

1941—July 30

Aug. 6.. .Aug. 13..Aug. 20..Aug. 27..

Sept. 3-_.Sept. 10..Sept. 17-.Sept. 24_.

Oct. 1--.Oct. 8...Oct. 15_.Oct. 22-

New York City1940—September1941—May

JuneJulyAugustSeptember

1941—July 30

Aug. 6___Aug. 13..Aug. 20..Aug. 27..

Sept. 3...Sept. 10..Sept. 17..Sept. 24..

Oct. 1...Oct. 8._.Oct. 15_.Oct. 22..

Outside New YorkCity

1940—September1941—May


1941—July 30

Aug. 6. . .Aug. 13..Aug. 20__Aug. 27..

Sept. 3...Sept. 10..Sept. 17..Sept. 24..

Oct. 1-.Oct. 8-..Oct. 15.Oct. 22.

24, 23327. 76428,15728,56028.94229,171

28, 771

28, 76128,87429.02529,107

29, 23829, 23029. 09829,120

29,12529,13229, 38529,618

1,64111,63511,79411,92612,08212,222

11,983

12, 00112.04112,12712,157

12. 27012, 25912,15212, 208

12,23712,18812, 30912, 326

14, 59216,12916, 36316.63416. 86016,949

16, 788

16,76016, 83316, 89816,950

16, 96816, 97116.94616,912

,,944

17,07617, 292

8,65310,02910,25210, 50110, 6̂ 110,937

10, 572

10, 59710,66310, 68810, 697

10, 90310, 97510,91710, 954

11,02411,07611,24411,212

2,8133,3143,4123,4963, 5343,655

3,505

3, 5123,5453,5403,537

3,6953,7093,6003,616

3,6543,6863,7833,755

5,8406,7156,8407,0057,1277,282

7,067

7,0857,1187,1487,160

7,2087,2667.3177,338

7,3707,3907,4617, 457

4,5515.6215,7725, 9756,1496,321

6,047

6,0876,1466,1806,183

6,2226,3106,3626,389

6,4476,5016,5686,556

1,7342,1412,2132,2912,3672,426

2,318

2,3372,3722,3852,375

2,3932,4282, 4352,450

2,4822,5152,5472,544

2,8173, 4803. 5593,6843.7823,895

3,729

3,7503,7743, 7953,808

3,8293.8823,9273,939

3,9653,9864,0214,012

295360370381400395

388

397399404400

397397394393

397403419423

220268276291315318

299

309311320319

318320318319

325331336339

400479483496453536

478

462457444448

607588469481

494493551535

290349349357326396

339

332328317325

462445336342

354356400378

110130134139127140

139

130129127123

145143133139

140137151157

462446447445438437

439

439440437437

436437437437

428427439433

163161161164161159

162

161161160160

159159159159

151150154153

299285286281277278

278279277277

277278278278

277277285280

1,2211.2371,2431,2491,2531,258

1,253

1,2541,2541, 2521,254

1,2561, 2581,2601,258

1,2571,2561,2581,262

124114114112110108

112

112111109109

110109108107

107107106106

1,0971,1231,1291,1371,1431,150

1,141

1,1421,1431,1431,145

1,1461,1491,1521,151

1,1501,1491,1521.156

1,6791,8471,8971, 9151,9271,948

1,924

1,9191, 9251,9301,932

1,9401.9421, 9551,956

1,9621,9561,9661,966

391426451451452456

453

451452453453

457458454453

458456459461

1,2881, 4211,4461,4641. 4751,492

1,471

1,4681, 4731,4771,479

1,4831.4841,5011,503

1,5041,5001,5071,505

15, 58017,73517, 90518,05918, 28118, 234

18,199

18,16418,21118,33718., 410

18, 33518, 25518,18118,166

18,10118,05618,14118,406

6,8288.3218,3828,4308,5488,567

8,478

8,4898,4968,5878,620

8,5758.5508, 5528,592

8,5838,5028,5268,571

8,7529,4149.5239,6299, 7339,667

9,721

9,6759,7159,7509,790

9,7609. 7059,6299,574

9,5189,5549,6159,835

1,8974,02414, 2534,49014, 57814, 467

14, 588

14,55314,55914, 593

14, 56714, 49614, 40814, 397

14, 30114, 30714,37814, 653

5,3816,9297,0037,0807,0827,021

7,087

7,0977,0747,0917,066

7,0317,0097,0047,040

7.0026,9686,9857,045

6,5167.0957,2507,4107,4967,446

7,501

7,4567,4857,5027,542

7,5367,4877,4047,357

7,2997,3397,3937,608

677949

1,0331,0791,069903

1,074

1,0751,0591,0641,079

1,019936844814

785815842817

312487582605602495

591

625582609590

548503460468

479474449423

365462451474467408

483

450477455489

471433384346

306341393394

2,0832 2142,2342,2492,2662,287

2,253

2,2532,2562.2762,279

2,2832,2842,2872,294

2,2802, 2502,2552,222

1,0381,4491,4561,4421.4381,447

1,434

1,4321,4331,4451,443

1,4421,4431,4501,453

1,4371,4021,4121,408

1,045765778807828840

819

821823831836

841841837841

843848843814

6,5557, 7897,9527,9467, 9317,958

7,952

7,9207,9327,9397,934

7,9497,9637, 9577,962

7,9177,9207,9468,271

2,6553,2193,2423,2323. 1883,221

3,216

3,1953,2003,1833,176

3,1873,2113,2373,249

3,2243,2233,2433,324

3,9004,5704,7104,7144,7434,737

4,736

4, 7254,7324, 7564,758

4,7624, 7524.7204,713

4,6934,6974,7034,947

2,5823.0723,0343,2163. 3123,319

3,309

3, 3053,3123,3143,316

3, 3163,3133,3203,327

3,3193,3223, 3353,343

1,3761,7741,7231,8011. 8541,858

1,846

1,8451,8591,8541,857

1,8541,8521, 8571,870

1,8621,8691,8811,890

1,2061,2981,3111,4151,4581,461

1,463

1,4601,4531,4601,459

1,4621,4611,4631,457

1,4571,4531,4541,453

3,6833,7113,6523, 5693,7033,767

3,611

3,6113,6523,7443,802

3,7683, 7593. 7733,769

3,8003,7493,7633,753

1,4471,392,379,350,466,546

,391

,392,422,496,554

,544,541,548,552

,581,534,541

1,526

2,2362,3192,2732,2192.2372,221

2,220

2,2192,2302,2482,248

2,2242,2182,2252,217

2,2192,2152,2222,227

NOTE.—For description of figures see BULLETIN for November 1935 (pp. 711-738) or reprint, and BULLETIN for June 1937 (pp. 530-531). Forback 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.

NOVEMBER 1941 1157


WEEKLY REPORTING MEMBER BANKS—NEW YORK CITY AND OUTSIDERESERVES AND LIABILITIES


serveBanks

11,49911,29410,92510, 82310,64610, 742

10,835

10,66210, 59410, 69610,633

10, 53410, 72510,87910, 830

10, 79210,80410,81610, 358

6,4215 8975 6675,5865,3165 285

5 589

5 3605,2635 3395,302

5,2575,3005 3155,267

5,1615 1575,1384 985

5,0785,3975,2585,2375,3305,457

5,246

5,3025,3315,3575,331

5,2775,4255,5645,563

5,6315,6475,6785,373

Cashin

vault

504546585564547556

561

537556536559

543573551559

537558550562

8489

123107

8886

95

88908590

88918484

80828181

420457462457459470

466

449466451469

455482467475

457476469481

Bal-anceswithdo-

mestibanks

3,2353,4953,4793,4983,4763,575

3,481

3,4103,5393,4953,462

3,5023,5303,6763,592

3,5963,5233,6453,504

819997888788

84

82858893

84889387

90879193

3,1543,3963,3823,4103,3893,487

3,397

3,3283,4543,4073,369

3,4183,4423,5833,505

3,5063,4363,5543,411

De-manc

de-posits

ad-justed

21,01124,01023, 96924, 21124, 34324, 404

24, 544

24, 21724, 24524,45524, 453

24, 34924, 50324, 37524, 390

24,27724,40024,64024, 382

9,67311, 05510, 9861,0220,9100,888

1,100

0,9060,7880,9790,965

0 9780,9770,7810,816

0,6720,7010,7060,564

1,3382,9552,9833,1893,4333,516

3,444

3,3113,4573,4763,488

3,3713,5263,5943,574

3,6053,6993,9343,818

[Monthly data are averages of Wednesday figures.

Demand deposits,except interbank


ships,andcor-

pora-tions

20, 59523, 35623, 50923,88423,78923, 890

24, 029

23, 54623, 92723, 89723, 787

23, 71923, 94824,04023, 853

23, 89423, 78824,77223, 989

9,74011,10811,0861,1830,9950,983

1,251

0,9580,9971,0470,977

1,0051,0770,9370,913

0,8650,7841,0710,735

0,8552,2482,4232,7012,7942,907

2,778

2,5882,9302,8502,810

2,7142,8713,1032,940

3,0293,0043,7013,254

Statesand


1,4211,8531,7411,6151,7981,829

1,750

1,7351,7361,8251,894

1,8761,8431,7851,811

1,9061,8571,8231,840

249353291247299299

277

252247338360

330309273282

342317289277

1,1721,5001,4501,3681,4991,530

1,473

1,4831,4891,4871,534

1,5461,5341,5121,529

1,5641, 5401,5341,563

Certifiedandoffi-cers'

checketc.

396461518526467493

523

455471464479

475494478525

656503568569

222231305297251264

298

242265248248

245281229302

398284286321

174230213229216229

225

213206216231

230213249223

258219282248

U. S.Gov-ern-

ment2

507394456467530596

470

502520533565

591590596608

580442276598

3519191862

111

16

39546689

107107109121

129120124283

472375437449468485

454

463466467476

484483487487

451322152315

Time deposits,except interbank


ships,andcor-

pora-tions

5,1755,2465,2335,2545,2745, 271

5,260

5,2735,2765,2765,271

5,2685,2735,2735,270

5,2675,2855,2785,283

683700699722740738

735

740740740739

738739739736

736747738735

4,4924,5464,5344,5324,5344,533

4,525

4,5334,5364,5364,532

4,5304,5344,5344,534

4,5314,5384,5404,548

Statesand


179183175163158156

158

157157158159

156156155159

160157156154

422622212424

22

23232425

24262323

24242525

137157153142134132

136

134134134134

132130132136

136133131129

Postasav-

ings 2

242626262221

26

25252020

21212121

21212121

242626262221

26

25252020

21212121

21212121

In millions of dollars.

[nterbankdeposits

Domesticbanks

De-mand

8,4659,0699,0599,0789,0759,402

8,965

8,9819,1099,1069,103

9,2409,3369,5929,440

9,5579,4969,7829,347

3,7023 8443,8603,8463,7973,883

3,827

3 7783,8213,7993,791

3 8143,8553,9593,904

3,9763,8823,9753,812

4,7635,2255,1995,2325,2785,519

5,138

5,2035,2885,3075,312

5,4265,4815,6335,536

5,5815,6145,8075,535

Time

111115114113111114

113

110112112112

115113115112

112113111111

I l l115114113111114

113

110112112112

115113115112

112113111111

For-eign

banks

679660663659639624

659

649648631629

626630613626

624633632645

625597600596577561

597

587586568568

566566551563

563570572587

546363636263

62

62626361

60646263

61636058

Bor-row-ings

21121

1

I[

1112

21121

1

1411

1111

1112

Cap-italac-

counts

3,7843,8623,8733,8733,8833,885

3,869

3,8823,8843,8833,883

3,8893,8863,8813,885

3,8883,8923,8973,902

1,4931 5171 5191 5101,5181 519

1 508

1 5181,5191 5181 516

1 5201,5191 5181,518

1,5201 5221 5221 523

2,2912, 3452,3542,3632,3652,366

2,361

2,3642,3652,3652,367

2,3692,3672,3632,367

2,3682,3702,3752,379

Date or month

Total 101 Cities1940—SeDtpmbpr1941—May


1941—July 30

Aug. 6Aug. 13Aug. 20Aug. 27

Sept. 3Sept. 10Sept. 17Sept. 24


New York City940—September941 M a v

JulyAugustSeptember

941 Tulv SO

Aug. 6Aug 13Aug 20Aug. 27

Sept. 3Sept 10Sept. 17Sept 24

Oct. 1Oct 8Oct 15Oct 22

OutsideNew York City

940—September941—May


941—July 30

Aug. 6Aug. 13Aug. 20Aug. 27

Sept. 3Sept. 10Sept. 17Sept. 24


Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection.TJ. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.



WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTSLOANS AND INVESTMENTS

[In millions of dollars.]

Federal Reservedistrict and date

(1941)

Boston (6 cities)Oct. 1Oct. 8Oct. 15Oct. 22

New York (8 cities)*Oct. 1Oct. 8Oct. 15Oct. 22

Philadelphia (4 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Cleveland (10 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Richmond (12 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Atlanta (8 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Chicago (12 cities) *Oct. 1Oct. 8Oct. 15Oct. 22

St. Louis (5 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Minneapolis (8 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Kansas City (12 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Dallas (9 cities)Oct. 1Oct. 8Oct. 15Oct. 22

San Francisco (7 cities)Oct. 1Oct. 8Oct. 15Oct. 22

City of Chicago*Oct. 1Oct. 8Oct. 15Oct. 22

Totalloansandin-

vest-ments

1,4401,4641,4621,472

13, 22313,16613, 28413, 330

1,3451,3511,3511,364

2,2422,2442, 2522,272

839843851865

741746766

3,8983,9063,9624,052

901909914916

483486490

823830846852

644652661

2,5462,5352,5462,566

2,5202,5262, 5762,640

Loans

Total

779

778

4,0764,1084,2064,175

567568568570

870866870865

328327333331

390398415408

1,4041,4011,4071,413

451458464462

255256259261

430432438443

344349357357

1,1301,1301,1431,149

922922924928

Com-mer-cial,in-

dus-trial,andagri-cul-tural

427427425421

2,6462,6782,7092,702

304304303

417418416413

159158161161

200206214211

919923922918

268274283283

135134136139

264266270274

235238242244

474475486487

679684680677

Openmar-ket

paper

8991103105

43424344

23242425

14141415


Tobrok-ersanddeal-ers

358360404382

272726

Toothers

16161616

196195200198

32323231

19192019

13131513

11121412

61606262

12121212

Realestateloans

193193192193

51515151

185185186186

50505051

38

142142142143

616060

15151515

33333333

23242424

387386388389

22222222

Loansto

banksOtherloans

151153150148

564561564566

111112112113

210204205205

88

127129134134

178175178178

828281

197

Investments

Total

661681678694

9,1479,0589,0789,155

778783783794

1,3721,3781,3821,407

511516518534

351348351361

2,4942,5052,5552,639

450451450454

228230231237

393398408

300303304305

1,4161,4051,4031,417

1,5981,6041,6521,712

U. S. Government obligations

Total

536558557572

7,4267,3857,3997,488

512515515526

1,1061,1141,1151,142

443449451468

235233237247

1,9471,9581,9962,076

339340338341

187188190195

260263277

239241242243

1,0711,0631,0611,075

1,2461, 2511,2911,347

Bills

13353340

494483456428

1111

189197234227

5554

196233226

Notes

42414040

1,4801,4451,4541,450

29292929

181181178176

7980

44444442

218223227212

36373636

21232317

44424142

34333232

727271

116116119117

Bonds

409412414422

3,4633,4623,4833,594

385388389400

734736741764

256257257276

117117116129

1,1791,1781,1771,277

218218217221

122121124136

109112112114

117117117122

808802799816

782781783848

Guar-an-teed

707070

1,9891,9952,0062,016

183184183186

107108107107

67667170

361360358360

80

35

100101100

494849

178177178177

160158156156

Othersecu-rities

125123121122

1,7211,6731,6791,667

266268268268

266264267265

6767

116115114114

547547559563

111111112113

41424142

133135131129

61626262

345342342342

352353361365

* 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.

NOVEMBER 1941 1159


WEEKLY REPORTING MEMBER BANKS—BY FEDERAL RESERVE DISTRICTSRESERVES AND LIABILITIES



serveBanks

546549562523

5,3775,3695,3585,187

581594589574

789774809765

313325326307

193196197185

1,7271,7001,6521,555

233243250241

11411511398

208217222219

164165167159

547557571545

1,3181,3051,2371,178

Cashin

vault

152152152154

103108105107

25262527

54555557

26282729

15181718

81838383

14161516

7888

18191819

14151415

28303129

41414241

Bal-anceswithdo-

mesticbanks

207202232200234275294260

235222228229

414401421404

273277283287

269265257260

635620628615

202202219207

126129130111

319310317300

301287296292

331333340339

283277281281

De-mand

de-posits

ad-justed1

1,4801,5081,5331,515

11,56711, 59011,61511,450

1,2431,2581,2481,267

1,7891,7881,8401,828

671692699698

534537558536

3,3723,3803,4103,397

598600623619

362366368354

633641656652

593594609598

1,4351,4481,4811,468

2,2292,2392,2432,247

Demand deposits,except interbank


ships,andcor-

pora-tions

1,4591,4401,5011,439

11,56511,46811,79511,419

1,1861,1831,2271,217

1,7771,7461,8531,797

671684714680

518524566531

3,1503,1453,2883,214

627630673651

327334346331

624626668645

571576614589

1,4191,4321,5271,476

2,1182,1182,2112,160

Statesand


101123131146

575544520513

142142136136

129130130134

68656472

87878081

420399403401

44454444

73646159

90838487

65626259

112108108108

23322322622Q

Certi-fiedandoffi-cers'

checksetc.

27253128

421304307345

16121118

32273433

14131916

65

136

5443655211101310

8877

12121411

17141915

38303528

32243228

U. S.Gov-ern-

ment2

11848

147133131297

18137

21

46331827

33221126

47341537

124963394

20161118

1111

16141012

35251320

82472237

95802573

Time deposits,except interbank


ships,andcor-

pora-tions

228223223228

1,1011,1131,1041,102

254254254254

725726727728

209209209209

188189189190

975976977979

187188188188

111111111111

140140140140

124124124125

1,0251,0271,0271,029

473473473474

Statesand

polit-ical

sub-divi-sions

1111

26262727

2222

20202020

3333

4333

25252525

4444

2222

8888

65636159

22222222

Postalsav-

ings 2

1111

7777

2222

3333

3333

2222

1111

1111

1111

Interbankdeposits

Domesticbanks

De-mand

399396416370

4,0633,9684.0863,898

492490507475

557544564536

4214344~0435

375392401394

1,4491,4351,4821,410

455474482464

196200201189

477479494481

296300316308

377384403387

1,0321,0751,1111,051

Time

13131313

13131313

36363535

6665

3334

9999

1111

2322

6.666

23232323

For-eign

banks

21231920

564571573588

6555

1111

1122

9998

1111

1111

20212119

8787

Bor-row-ings

1111

1

Cap-italac-

counts

250250251252

1,6461,6471,6471,649

218218218218

394394395395

102101103103

98999999

427427427428

98999999

63636464

110110110110

91929293

391392392392

279279279279

Federal Reservedistrict and date

(1941)

Boston (6 cities)Oct. 1Oct. 8Oct. 15Oct. 22

New York (8 cities)*Oct. 1Oct. 8Oct. 15Oct. 22

Philadelphia U cities)Oct. 1Oct. 8Oct. 15Oct. 22

Cleveland (10 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Richmond (12 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Atlanta (8 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Chicago (12 cities)*Oct. 1Oct. 8Oct. 15Oct. 22

St. Louis (5 cities)Oct. 1Oct. 8Oct. 15Oct. 22

Minneapolis (8 cities)Oct. 1Oct. 8Oct 15Oct. 22

Kansas City (12 cities)Oct. IOct. 8Oct. 15Oct. 22

Dallas (9 cities)Oct. 1Oct 8Oct. 15Oct. 22

San Francisco (7 cities)Oct 1Oct. 8Oct. 15Oct 22

City of ChicagoOct. 1Oct 8Oct 15Oct. 22

* 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 AND BANKERS' ACCEPTANCES OUTSTANDING[In millions of dollars]

End of month

1940—JuneJuly . . . .AugustSeptemberOctober. .NovemberDecember

1941—January _-. .February _ _MarchAprilMay ___JuneJuly .August . . . _ _ - _ - _ -September

Com-mer-cial

paper

stand-ing i

224232245251252232218

232241263275295299330354371

Dollar acceptances outstanding

Total

stand-ing

206188182177187197209

213212217220215213210197177

Held by

Accepting banks

Total

166152148142149159167

168164170170164161161148131

Ownbills

1121031031009699

100

10399

10710510510110610085

Billsbought

54494442536067

656563666059554746

Others*

40363435383842

454847495152495046

Based on

Im-portsinto

UnitedStates

797580809198

109

115119120126125123121114105

Exportsfrom

UnitedStates

43322422202018

161824252424222113

Dollarex-

change

13131111119

10

1178733334

Goods stored in orshipped between

points in

UnitedStates

36353835374144

444241384143474945

Foreigncoun-tries

34322928282927

26262523222016119

5As reported by dealers; includes some finance company paper sold in open market.2 None held by Federal Reserve Banks.Back figures—See Annual Report for 1937 (table 70).

CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGEFIRMS CARRYING MARGIN ACCOUNTS

fMerober firms of New York Stock Exchange. Ledger balances in millions of dollars]

End of month

1935—December

1936—JuneDecember

1937—JuneDecember

1938—JuneDecember

1939—JuneDecember

1940—JuneSeptemberOctoberNovemberDecember

3941—JanuaryFebruaryMarchApril .__MavJuneJulyAugustSeptember

Debit balances

Customers 'debit

balances(net) i

1,258

1,2671,395

1,489985

774991

834906

653635653666677

661634633606622616628628633

Debitbalances inpartners'

investmentand trading

accounts

75

6764

5534

2732

2516

1212121212

11119

101011101010

Debitbalances in

firminvestmentand trading

accounts

135

164164

161108

88106

7378

5857706499

73788186

1028987

16083

Cash onhand

and inbanks

179

219249

214232

215190

178207

223218203214204

207199199199185186189189196

Credit balances

Moneybor-

rowed a

930

9851.048

1,217688

495754

570637

376370381383427

399375387368403395388460396

Customers'credit balances 1

Free

286

276342

266278

258247

230266

267268269280281

275267268265262255266262260

Other(net)

79

86103

9285

8960

7069

6256585954

545356606165707278

Other credit balances

Inpartners'invest-

ment andtrading

accounts

24

2430

2526

2222

2123

2220202022

222221201717171616

Infirm

invest-ment and

tradingaccounts

10

1412

1310

115

67

55545

666877878

Incapital

accounts(net)

410

420424

397355

298305

280277

269255253253247

238237231227223222221221219

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 money borrowed from banks and also 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 method

by 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 or 1Q37 (table 69).

NOVEMBER 1941 1161


OPEN-MARKET RATES IN NEW YORK CITY[Per cent per annum]

Year,month, or

week

1938 average1939 average1940 average1940—Sept.

OctNovDec.

1941—JanFebMar.AprilMayJune . .JulyAugSept

Week ending:Oct. 4Oct. 11.__Oct. 18. __Oct. 25 . . .

Prevailingrate1

Primecom-

mercialpaper,4 to 6

months

.81

.59

.56

.56

.56

.56

.56

.56

.56

.56

.56

.56

.56

.50

.50

.50

o n -

Primebank-

ers'accept-ances,

90days

.44

.44

.44

.44

.44

.44

.44

.44

.44

.44

.44

.44

.44

.44

.44

.44

VieVieVieVie

Averagerate on-

Stockex-

changecallloanre-

new-als 2

1.001.001.00

1.001.001.001.00

1.001.001.001.001.001.001.001.001.00

1.001.001.001.00

U. S. Treas-ury 91-day

bills s

Newissues

of-fered

withinperiod

.053

.023

.014

.021(4)

.003

(4).034.089.092.082.089.097.108.055

.002

.001

.024

.067

Deal-ers'quo-

tation

.07

.05

.04

.05

.02

.02

.02

.02

.04

.11

.10

.11

.12

.12

.13

.10

.11

.07

.06

.06

Average yieldon 3-to-5 year

U. S.Treasury

notes

Tax-ex-

empt

.83

.59

.50

.48

.43

.34

.35

.43

.55

.50

.52

.44

.38

.37

.33

.34

.38

.39

.41

.41

Tax-able

.65

.76

.81

.84

.81

.72

.68

.67

.62

.62

.66

.69

.72

.73

1 Monthly figures are averages of weekly prevailing rates.2 The average rate on 90-day stock exchange time loans was 1.25 per

cent during the entire period.3 Tax-exempt bills prior to March 1941; taxable bills thereafter.4 Rate negative.Back figures.—See Annual Report for 1937 (tables 43 and 44). Figures

for Treasury bills and Treasury notes available on request.

COMMERCIAL LOAN RATES

AVERAGES OF RATES CHARGED CUSTOMERS BY BANKS INPRINCIPAL CITIES

[Per cent per annum]

1934 average1

1935 average1 ._ .1936 average1

1937 average1

1938 average1.. _.1939 average1940 average. . .

Monthly figures*1938—June

JulyAugustSeptemberOctoberNovemberDecember

1939—JanuaryFebruary

Quarterly figures1939—March..__

JuneSeptemberDecember

1940—MarchJuneSeptemberDecember

1941—MarchJuneSeptember

Total19 cities

3.452.932.682.592.532.782.63

2.562.572.522.532.572.492.60

2.642.52

2.952.912.682.59

2.652.592.682.59

2.582.552.60

NewYorkCity

2.451.761.721.731.692.072.04

1.701.701.671.701.701.701.70

1.731.70

2.132.152.041.96

2.032.002.142.00

2.061.951.98

7 otherNorth-ern andEastern

cities

3.713.393.042.882.752.872.56

2.782.782.712.742.902.682.95

2.972.69

3.053.052.782.59

2.672.492.562.53

2.532.582.62

11 South-ern andWestern

cities

4.323.763.403.253.263.513.38

3.313.353.283.263.213.203.23

3.323.26

3.773.623.313.32

3.353.383.433.36

3.253.233.29

1 Prior to March 1939 figures were reported monthly on a basis notstrictly comparable with the current quarterly series.

Back figures—See November 1939 BULLETIN, pp. 963-969 for descrip-tion and for back figures.

BOND YIELDS'[Per cent per annum]

Year, month, or weekU.S.

Govern-ment 2

Munic-ipal s

High-gradecorpo-rate4

Corporate (Moody's)5

Total

By ratings

Aaa Baa

By groups

Indus-trial

Rail-road

Publicutility

Number of issues.

1938 average1939 average1940 average

1940—September.OctoberNovember.December..

1941—JanuaryFebruary..MarchAprilMayJuneJulyAugust

September-

Week ending:Oct. 4Oct. 1 1 . . . .Oct. 18Oct. 25

2-6 120 30 30 30 40

2.562.362.21

2.182.101.971.891.992.102.011.961.921.911.901.941.94

1.921.901.901.87

2.912.762.50

2.442.322.182.072.162.272.282.202.142.082.032.001.99

1.961.921.901.90

3.122.922.77

2.712.702.652.592.572.712.732.762.752.702.662.652.64

2.632.622.602.61

4.193.773.55

3.503.463.403.363.363.403.393.393.373.343.303 293.30

3.293.283.283.28

3.193.012.84

2.822.792.752.712.752.782.802.822.812.772.742.742.75

2.742.732.732.73

3.563.223.02

3.013.012.962.922.953.003.013.042 992.'952.902.902.91

2.882.88

4.223.893.57

3.523.483.403.363.363.383.373.383.343.313.263.243.24

3.233.213.213.21

5.804.964.75

4.664.564.484.454.384.424.384.334.324.314.284.274.30

4.314.274.284.28

3.503.303.10

3.103.062.982.932.963.003.023.063.022.962.902.902.88

2.872.852.852.85

5.214.534.30

4.234.154.074.033.964.003.983.963.953.953.923.923.95

3.953.933.933.92

40

3.873.483.25

3.193.183.143.133.173.193.173.163.133.103.073.063.07

3.063.053.053.06

1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures.2 Average of yields on all outstanding partially tax-exempt U. S. Government bonds due or callable in more than 12 years.3 Standard and Poor's Corporation.4 U. S. Treasury Department.s Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa and Aa groups have

been reduced from 10 to 4 and 10 to 3 issues respectively, and the railroad Aaa and Aa groups from 10 to 5 and 10 to 9 issues respectively.Back figures.-—See Annual Report for 1937 (table 80) and for high-grade corporate bonds, Bulletin of the Treasury Department for July 1941,

pages 21-24. Figures for U. S. Government bonds available on request.



SECURITY MARKETS1

Year, month, orweek

Bond prices

U.S .Gov-ern-

ment 2

Munic-ipal 3

Corporate 4

High-grade

Medium and lower-grade

Total Indus-trial

Rail-road

Publicutility

De-faulted

Stock prices 6

Pre-ferred l

Common (index, 1935-39—100)

Total Indus-trial

Rail-road

Publicutility

Vol-ume oftrad-ing 7

(inthou-

sands ofshares)

Number of issues.

1938 average.1939 average1940 average

1940—September.OctoberNovember.December,.

1941—JanuaryFebruary..MarchAprilMayJuneJulyAugustSeptember

Week ending:Oct. 4Oct. 11Oct. 18Oct. 25

2-6

102.5105.2107.2

107.7108.8110.7111.8110.4108.8110.1110.8111.4111.5111.7111.1111.1

111.4111.7111.7112.1

113.7116.3121.2

122.3124.6127.3129.3

127.8125.6125.4126.8

128. 2129. 5130. 4131.0131.2

131.9132.8133.3133.3

10

111.1113.8115.9

116.5117.2118.0117.7117. 7116.7116.9116.8117.0117.7118.7118.5118.1

118.6118.7118.8118.9

83.489.594.8

96.397.798.598.199.297.598.499.599.399.2

18.O

99.199.498.999.1

86.791.297.3

98.3101.1103.0102. 8103.0101.7102.2103.1102.4103.3104.8104.9105.1

105.3105.5105.3105.3

72.278.183.8

85.186.486.886.289.087.188.489.589.487.987.886.884.5

84.685.384.585.0

91.699.3

103. 5

105. 3105.9105. 9105. 3105. 6103. 8104.6106. 0106. 2106. 3107.1107.3107.2

107.3107.3106. 8107.2

15

15.113.814.0

14.515.015.316.417.917.519.320.721.021.623.924.924.4

24.725.224.825.3

161.4167.5169.2

168.6170.8171.6176.2177.9172.9171.5170.8168.9168.9173.1174.3173.4

172.4172.4172.4172.0

402

84

354 28

1,104977767

553599

1,044814564444440495420463757473599

431548620594

r Revised.1 Monthly and weekly data are averages of daily figures, except for municipal bonds and for stocks, which are based on Wednesday figures.2 Prices derived from average of yields on all outstanding partially tax-exempt U. S. Government bonds due or callable in more than 12 years

on basis of a 2% per cent, 16 year bond. For description see November 1940 BULLETIN, pp. 1179-1180. Prices expressed in decimals.3 Prices derived from average yields, as computed by Standard and Poor's Corporation.4 New series beginning with 1937 as published by Standard and Poor's Corporation. Prices derived from averages of median yields.5 Prices derived from averages of median yields on noncallable high-grade stocks on basis of a $7 annual dividend.e Revised series, as published by Standard and Poor's Corporation. Figures for preferred stocks have been revised beginning with February

1928; the common stock indexes have been converted from a 1926 to a 1935-39 base, and substitutions have been made in the list of stocks. Figureson number of issues relate to stocks in indexes at the present time.

7 Average daily volume of trading in stocks on the New York Stock Exchange.Back figures.—For United States Government bonds, see November, 1940 BULLETIN; for municipal bonds, see Annual Report for 1937 (table 79).

CAPITAL ISSUES[In millions of dollars!

Year ormonth

193119321933 . .19341935. .19361937193819391940

1940— Sept . . . .OctNov.—Dec

1941—JanFebMar . . . .AprM a y . . .June..July.—AugSept.. . .

Total(newandre-

fund-ing)

4,0381,7511,0632,1604,6996,2143,9374,4495,8424,804

229711442613421347406920406881612471273

For new capital

Total(do-

mesticandfor-

eign)

3,0951,197

7201,3861, 4571,9722,1382,3602,2891,956

114258264191

9577

182745107519296360

65

Total

' 2, 8601,165

7081,3861,4091,9492,0942,3252,2391,954

114258264191

9577

182745107519296360

65

Stateandmu-nici-pal

1,235762483803855735712971931757

469853

129403786603759403331

Domestic

Fed-eral

agen-cies i

757764

405150

22157481924461

011242

0289

6455

370212

00

Corporate

Total

1,551325161178404

1,1921,225

873383736

6848

1696253328739649044

32734

Bondsand

notes

1,239305

40144334839817807287601

6422

1664651255629617730

32422

Stocks

31120

1203569

352408

6797

135

426

316

26

3110

31413

412

For-eign 2

2353212

04823443550

2

0000000

(3)0

(s)(3)

00

For refunding

Total(do-

mesticandfor-

eign)

944554343774

3,2424,2421,7992,0893,5532,848

116453178422325270223175299362316110209

Total

893498283765

3,2164,1231,6802,0613,4652,848

116453178422325270219175299362316110209

Stateandmu-nici-pal

218737

136365382191129195478

24802573232693407426141120

Domestic

Fed-eral

agen-cies i

519326

317987353281665

1,537344

262859143117112828

223216

2527

Corporate

Total

821319219312

1,8643,3871,2091,2671,7332,026

66345

94335271227115107197113

8674

161

Bondsand

notes

789315187312

1,7823,187

8561, 2361,5961,834

64332

68292269210

84107162108

7673

156

Stocks

324

320

81200352

31137193

1142643

31732

035

511

26

For-eign2

515660

926

119119

2888

0

0000004000000

1 Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury.2 Includes issues of noncontiguous U. S. Territories and Possessions.3 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).

NOVEMBER 1941 1163


UNITED STATES GOVERNMENT DEBT—VOLUME AND KIND OF DIRECT SECURITIES[On basis of daily statements of United States Treasury. In millions of dollars]

End ofmonth

1932—June.-_1933—June.--1934—June.--1935—June---1936—June__-1937—June---1938—June.--1939—June-_ _1940—June.--

1940—Sept. _-OctNov.—Dec.--.

1941—JanFeb.__.M a r —Apr..__May.- .June_-_July.._Aug.—Sept.--

Totalgrossdebt

19,48722, 53927,05328, 70133,77936, 42537,16540, 44042, 968

44, 07344,13744, 27345, 02545, 87746, 09047,17347, 23147, 72148, 96149, 51350,92151, 346

Totalinterestbearingdebt-

19,16122,15826, 48027, 64532,98935, 80036, 57639,88642, 376

43, 48043, 56043, 70744,45845, 32045, 53546, 58146, 67347,16048,38748, 96550, 37150, 791

Marketable public issues x

Total

618,8526 21,834e 26,084

26, 95031,10233,05432, 34433, 96534,436

35,11935,12335,12435, 64536, 27636, 27537,05437,07537,07537,71337, 71337, 66737, 368

Treas-urybills

616954

1,4042,0532,3542,3031,1541,3081,302

1,3031,3071,3081,3101,3071,3061,6041,6031, 6031,6031,6031,6041,305

Treas-ury

notes

1,2614,5486,653

10,02311,38110, 6179,1477,2436,383

6,3845,6605,6606,1786,8136,8135,7225,7215,7215,6985.6985,6985, 698

Treas-ury

bonds2

13,46013, 41715, 67914,01917,16819,93621, 84625, 21826, 555

27, 23527,96027, 96027, 96027, 96027, 96029,53229,55429, 55430, 21530,21530,16930,169

Postalsavings

andprewarbonds

790806831855200198197196196

196196196196196196196196196196196196196

Nonmarketable public issues

Total 3

621,2611,1881,5562,1513,166

3,2983,3363,3743,4443,6193,7273,8443,8914,2514, 5554,9296,2346,765

U.S .sav-ings

bonds

62316800

1,2381,8682,905

3,0443,0843,1233,1953,3713,4803,5993,6474,0084,3144,6494,9085,132

Treas-urytax

notes

1,0371,343

Ad-justedserv-ice

bonds

945389319283261

254252251249248247245244243241239237236

Special issues

Total

309323396633626

1,5582,6763,7704,775

5,0635,1025,2095,3705,4265,5345,6835,7075,8346,1206,3246,4706,658

Socialsecur-

i ty4

19579

1,6012,5113,528

3,7513,7773,8854,0474,0664,1744,3244,3544,4854,7284,8114,9415,126

Other5

309323396633607979

1,0751,2581,247

1,3121,3251,3241,3221,3591,3591,3591, 3531,3491,3921,5121,5281,532

Noninterestbearing debt

Ma-tured

606654

231169119141142205

212197187189181180220186190205180184190

Other

266315518825620506447411386

381380379377376374372372370369368367365

1 Including amounts held by Government agencies and trust funds which aggregated $2,103,000,000 on Aug. 31, and $2,105,000,000 (preliminary)on Sept. 30, 1941. These amounts exclude holdings by production credit associations and joint stock land banks.

2 Including Liberty bonds.3 Beginning with July 1941 includes depositary bonds not shown separately which amounted to $54,000,000 on Sept. 30.4 Including special issues to Federal old-age and survivors insurance trust fund, unemployment trust fund, and railroad retirement account.5 Including special issues to Government life insurance fund, adjusted service fund, national service life insurance fund, Government employees'

retirement funds, Postal Savings System, Federal Deposit Insurance Corporation, and Federal Savings and Loan Insurance Corporation.« Including certificates of indebtedness not shown separately: 1932, $2,726,000,000; 1933, $2,108,000,000; 1934, $1,517,000,000.

SECURITIES FULLY GUARANTEED BY UNITED STATES GOVERNMENT, BY ISSUING AGENCIES1


End of month

1934—JuneDecember..

1935—JuneDecember _.




1939—JuneDecember,.

1940—June1940—September..

OctoberNovember..December..

1941—JanuaryFebruary...MarchAprilMayJuneJuly. . __..__ .AugustSeptember..

Totalamount

outstand-ing

5,704

5,529

5,8085,8105,9195,9175,9155,9145,9166.5606, 3716,3706,9396,9376,937

Tnterest-bearing

Total

6813,063

4,1234,494

4,7184,662

4,6654,645

4,8534,992

5, 4505,621

5,498

5,7875, 7905,9015,9015,9015,9015, 9056, 5506,3596,3606,9306,9286,929

FederalFarm

MortgageCorpora-

tion

312980

1,2261,3871,4221,4221,4221,4101,4101,3881,3791,2691,2691,2691,2691,2691,2691,2691,2691, 2691, 2691,2691,2691,2691,2691,269

HomeOwners'

LoanCorpora-

tion

1341,834

2,6472,8553,0442,9882,9872,937

2, 9372,8882,9282,731

2,603

2, 6022,6022,6002,6002,6002,6002,6002,6002,4092,4092,4092, 4092,409

Recon-structionFinanceCorpora-

tion

235249250252252252255297299509820

1,0961,0961,0971,0971,0971,0971,0971,0971,0971,7411,7411,7412,1012,1012,101

Com-modityCredit

Corpora-tion

206206206407407696696696696696696696696696696907905905

U. S.HousingAuthor-ity

114114

114114226226226226226226226226226226226

FederalHousingAdmin-istration

Non-interestbearingmatured

debts

11

34

8

9121313121316171717171718

83

31

211918151413111012111098

1 Principal amount of obligations guaranteed as to interest and principal. Excludes obligations held by U. S. Treasury and reflected in thepublic debt.

2 Figures on matured debt were not published prior to September 1939.3 Less than $500,000.



MATURITIES OF PUBLIC MARKETABLE SECURITIES OF U. S. GOVERNMENT, DIRECT AND FULLY GUARANTEED, SEPTEMBER 30,1941[In millions of dollars]

Matur ing orcallable

1941— Oct. l - D e c . 3 1 . . .

1942—Jan. 1-Mar.31___Apr. 1-June 30. „July 1-Sept. 30Oct. 1-Dec. 3 1 . . .

194319441945194619471948194919501951195219531954195519561958195919601961196319641965

T o t a l . . .

Within 1 year1 to 5 years5 to 10 years_.10 to 20 yearsOver 20 years

Direct securities maturing

Total

1,509

426

342232

1,3961,8493,1911,5352,3841,489

8211,6891,2302, 4542,9323.7091,5151,1701,449

9822,611

50919

1,485

37, 368

2,2788,2027,613

16, 8712,404

Treas-urybills

1,305

1, 305

1,305

Treas-ury

notes

204

426

342232

1,3961,8491,249

5,698

9734,726

Bonds

Treas-ury

1,9411,5192,3701,487

8191,6871,2232, 4362,9043,6871,4801,1701,449

9822,611

919

1,485

30,169

3,4607,585

16, 7192,404

Pre-warand

PostalSavings

(3)

(3)

(3)(3)(3)

16142227

18272235

50

196

(3)1728

152

Treas-ury

bondsdue or

callable*

1,8552,5551,7552,3441,4603,3612,2781,1863,5001,024

725681

2,6112,431

919

1,485

30,169

8,50910,66710,993

Fully guaranteed securities maturing

Total 2

616

310

276320

6141,561

412

1,095

835

779

95

6,911

1,2022,9061,930

77995

FederalFarmMort-gage

Corpor-ation

340

835

95

1,269

1,175

95

HomeOwners'

LoanCorpor-

ation

875

755

779

2,409

875755779

Recon-struc-tion

FinanceCorpor-

ation

300

310

276320

324571

2,101

8861,216

Com-modityCredit

Corpor-ation

204

289

412

905

204701

U. S.HousingAuthor-

ity

112

114

226

112114

Totalfullyguar-

anteedsecuri

tiesdue or

callable^

616

650

1,151320

6142,3941,167

6,911

2,4174,494

1 Securities not callable prior to maturi ty are shown as of date of maturity.2 Excluding debentures of Federal Housing Administration, which amounted to $18,000,000 on September 30.a Less than $500,000.

OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED[In millions of dollars]

End ofmonth

1930—June1931 June1932—JuneIQQQ—June1934—June1935—June

1936—JuneDecember

1937—JuneDecember

1938—JuneDecember

1939—JuneDecember

1940—JuneDecember

1941—June

Totalinterest-bearing

securities

15,92216,52019,16122,15827,16131,768

37, 70738,36240,46541,35341,42843, 89145, 33647,06747,87450, 36054, 747

Held by Federalagencies andtrust 1

Specialissues

764291309323396633

626632

1,5582,2272,6763,1563,7704,2314,7755,3706,120

unds

Publicissues

208144261366

1,0551,365

1,7031,8202,0362,0492,1232,1982,1382,323

3 2, 2923 2, 2503 2, 360

Heldb y

FederalReserveBanks

591668

1,7841,9982,4322,433

2,4302,4302,5262,5642,5642,5642,5512,4842,4662,1842,184

Privately held i

Total

14,35915,41716,80719, 47123, 27827, 337

32,94833,48034, 34534, 51334,06535, 97336, 87738,02938, 34140, 55644,083

Memberbanks

4,0615,3435,6286,8879,413

11, 429

13,67113, 54512,68912, 37112, 34313, 22213, 77714,32814, 72215,82318, 078

Othercom-

mercialbanks

920670590590890

1,290

1,6001,7101,8701,7901,7001,8501,9201,9701,8301,940

••2,020

Mutualsavingsbanks

520650680720970

1,540

2,0502,3302,3902,4502,6902,8803,0403,1003,1103,220

r3, 430

Insur-ancecom-

panies 2

8001,0001,5002,600

3,9004,5005,0005,2005,2005,6005,8006,0006,1006,5006,600

Other investors2

Market-able

issues2

8,9008,8009,100

10, 30010,50010,400

10,50010,50011,30011, 50010,70010,80010,40010,4009,7009,9009,700

u. s.Savings

andadjustedservicebonds

100

1,200900

1,1001,2001,4001,6001,9002,2002,9003,2004,300

r Revised.i Estimated figures for other commercial banks and mutual savings banks have been rounded to nearest 10 millions and estimated figures for

insurance companies and other investors have been rounded to nearest 100 millions.* Holdings of insurance companies included with "Other investors" prior to 1932.3 Excluding holdings of production credit associations and joint stock land banks.NOTE.—For end of June figures 1916-1929, see BULLETIN for July 1941, p. 664.

NOVEMBER 1941 1165


SUMMARY OF TREASURY OPERATIONS

[On basis of daily statements of United States Treasury. In millions of dollars]

Period

Fiscal yearending:

June 1938—June 1939—_June 1940...June 1941.._

3 monthsending:

Sept. 1940-.Sept. 1941..

1940—Sept. _Oct...Nov..D e c .

1941—Jan.. _Feb..Mar..Apr..MayJuneJuly .Aug.-Sept..

In-cometaxes

2,6402,1892,1253,470

519922

4324449

42963

1041,208

7563

9168459

780

Period

Fiscal year end-ing:

June 1938. __June 1939___June 1940. __June 1941...

3 months end-ing:

Sept. 1940Sept. 1941

1940—Sept.OctNovDec -

1941—Jan.FebMarApr.MayJuneJulyAugSept

Mis-cella-neousinter-nal

reve-nue

2,2792,2322,3452,967

796798

213237252231210204273244254265268269261

]Receipt

Socialsecur-

itytaxes

755740838932

208258

2938

1383447

1933443

1653248

17337

Allother

567507617900

121167

3747464652

17252

240

Old-age insurancetrust fund and railroad

retirement account

Netre-

ceipts

i

<<

]

]

]

550339ro3344

212248

1132

L431

42521146485889

L571

In-vest-

ments

t

\

161516573337

L44L92

L48*5*5

L514 0*5

L604 0*6

22424

4 6L85

Bene-

pay-ments

•

;

:

85120129186

4054

14151515151617171717181818

5864565458

• p

Totalre-

ceipts

6,2425,6685,9258,269

1,6452,145

711365485741372674

1,567602541

1,277456554

1,136

General and special accounts

Netre-

ceipts*

5,\5,

355L65

5,3877,607

1 L

-

;

i

;

1,

189)44

rn333562-

r40340541566565394276113397L35

Inter-eston

debt

<1, (

]

]

)26HI)41Lll

88203

L487311

2192521

L507312

33925

9L69

Expenditures (excl. debt

Na-tional

de-fense

1,0291,2061,6576,080

6213,404

225297379470569584748763837812960

1,1241,320

Agri-cul-

turalAd-just-mentPro-gram

362787

1,002- 877

-192103

-7010310811010396

102713932

-44-2732

Un-em-

ploy-ment

re-lief

1,9142,5951,9191,741

432346

139145138155146138159148145135132106109

retirements)

Trans-fers totrustac-

countsetc.i

rr

r

220182226325

161189

-15

20

18201018

r

Details of trust accounts, etc.

Unemploymenttrust fund

rtc-ceipts

I<

1,

r63338J59L14

268282

67L07L455178

L492869

L675182

17624

In-vest-

ments

560395443563

80206

1

1*

1

1

183113112913104037196046

Otherex-

pendi-tures

191442514555

19178

81843133414337353031292524

169-14

6

Allother

2,7882,9963,1532,577

Net expenditures in checkingaccounts of Government agencies

Recon-structionFinanceCorpora-

tion

*9*658*234

80

13•16

*13*10591516

16064

*4068287

*28016698

Com-modityCredit

Corpora-tion

*1841361058

4 3 5*173

•121241712

7373357

•16*221

3413

UnitedStatesHous-ing Au-thority

1*60

17121

34*2

15

*1038

32

25243127

*22109

A 11A l l

other

•12*186-174r*41

-*68*79

-18*13*5021

*43*30*564 22414 84 1*42*27

688756

162251162218251217229242108211268250238

Total*

788

239707998

12, 711

25

1,11,1,111111

283001

759869817172111075399315141528598529874

Excessof re-ceipts(+)orexpen-ditures

*

-1,384- 3 , 542-3,611-5,103

-794-3,057

- 4 8-536-455-432-771-534+167- 7 5 0- 7 4 7- 2 5 2

- 1 , 1 8 5- 1 , 1 3 3

- 7 3 9

All other

ceipts

414440

-458-674

-196269

-37291835383346574386

-162-5453

Ex-pendi-tures

327324

-358-622

-164235

-28176

25504249483283

-138-4651

Trustac-

countsetc.,2

excessof re-ceipts(+)or

ex-pendi-tures( - )

+306+890+136- 1 4 8

+213+304

- 1 5 8- 2 4

+216- 2 0 9+15

- 3- 2 3 6+403- 2 6 4- 2 5 9+599

- 2293

Lncrease or de-crease during

period

Gen-eralfundbal-

ance2

-338+622- 9 4 7+742

+524- 3 6 8

- 3 9- 4 9 5- 1 0 3+111+97

- 3 2 4+1, 014

- 2 9 0—521+729

- 3 4+274-607

Grossdebt 3

+740+3,275+2, 528+5, 994

+1,105+2, 385

+168+64

+136+752+852+213

+1,083+58

+490+1, 241

+551+1, 408

+425

Details of general fundbalance (end of period)

Total

2,2162,8381,8912,633

2,4152,266

2,4151 9201,8171,9282,0251,7012,7152,4251,9042,6332,5992,8732,266

In-cre-

menton

gold

142142143143

143143

143143143143143143143143143143143143143

Seign-iorage

446536585605

592611

592595596597599601602603604605607610611

w orK-ingbal-ance

1,6282,1601,1631,885

1,6801,511

1,6801,1831,0781,1881 283

9571,9701,6791,1571,8851,8482,1201,511

r Revised for change in classification of commodity stamp transactions of Surplus Marketing Administration. Figures for 1939 and October1940-June 1941 have not yet been revised because of lack of adequate data.

1 Beginning with July 1,1940, net receipts represent total receipts less net social security employment taxes, which under the 1939 amendmentsto the Social Security Act are appropriated directly to the Federal old-age and survivors insurance trust fund. To make the figures for earlierperiods comparable, transfers to this trust fund, formerly shown under expenditures, have been deducted from total receipts, from total expendi-tures, and from transfers to trust accounts.

2 Details given in lower section of table.3 For details, see page 1164* For social security investments, excess of redemptions; for net expenditures in checking accounts, excess of receipts.NOTE.—For explanation of table see BULLETIN for October, 1940, pp. 1052-1054.



GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES[Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars]

AssetsLoans and preferred stock:

Loans to financial institu-tions

Preferred stock, etc..Loans to railroadsHome and housing mortgage

loans ___Farm mortgage loansOther agricultural loansAll other loans

Total loans and preferredstock _ _ .

Cash.U. S. Govt. direct securitiesSecurities of Government corpor-

ations and credit agencies:Fully guaranteed by U. S.__.Other i

Accounts and other receivables . .Business propertyProperty held for saleOther assets ._ . . .

Total assets other than in-teragency 2

LiabilitiesBonds, notes, and debentures:

Fully guaranteed by U. S..__Other i .

Other liabilities _Total liabilities other than

interagency 2 . _Excess of assets over liabilities,

excluding interagency transac-tions _.

U. S. Govt. interestsPrivately owned interests_.

1940

Aug.

433756553

2,3362,534

8151,197

8,623

566715

13136

519569

1,061191

12,410

5,8111,3541,234

8,400

4,010

3,603407

Sept.

437757513

2,3482,526

8021,200

8,583

572693

13136

512570

1,081193

12, 371

5,8091,3561,238

8,403

3,968

3,558410

Oct.

441757512

2,3872,517

7851,214

8,613

521704

13030

521597

1,094188

12, 398

5,8081,3541,243

8,406

3,992

3,580412

Nov.

469739515

2,3872,508

7721,291

8,680

549699

12824

513601

1,113210

12, 518

5,9191,4221,237

8,579

3,939

3,526413

Dec.

485736516

2,3902,500

7571,298

8,682

533701

12822

491593

1,141211

12, 500

5,9171,3951,214

8,526

3,974

3,559415

1941

Jan.

445729523

2,4242, 481

7281,309

8,639

580723

12721

552599

1,190214

12,645

5,9151,3891,294

8,599

4,046

3,629417

Feb.

425711518

2,3952,485

7271,352

8,614

595736

12722

524600

1,206251

12,676

5,9141,3861,292

8,592

4,084

3,666418

Mar.

409706523

2,4062,475

7761,386

8,681

620756

12420

551602

1,245310

12,909

5,9161,3901,391

8,696

4,213

3,792421

Apr.

400703523

2,4272,467

8671,409

8,796

771771

12621

555608

1,297338

13,282

6,5601,3851,432

9,377

3,906

3,484422

May

397702505

2,4362,458

8301,472

8,800464780

12517

549623

1,392359

13,108

6,3711,4341,492

9,297

3,811

3,388423

June

417698505

2,4452,448

7791,511

8,804

376802

12318

598636

1,497423

13, 277

6,3701,4431,604

9,417

3,860

3,436424

July

408693497

2,4132,437

7541,553

8,756

771824

12317

707653

1,567435

13, 853

6,9391,4421,761

10,142

3, 711

3,286425

Aug.

407669497

2,4132,426

7261,690

8,826

594844

12318

671664

1,625517

13, 882

6,9371,4451,741

10,123

3,759

3, 333426

1 Excluding Federal land bank bonds held by Federal Farm Mortgage Corporation.2 Including, however, investments in securities of agencies (other than mentioned in footnote 1) and deposits of agencies with Reconstruction

Finance Corporation.

PRINCIPAL ASSETS AND LIABILITIES OF GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, AUGUST 31, 1941[Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars]

Reconstruction Finance Corporation.National defense corporationsHome mortgage and housing agencies:

Home Owners' Loan CorporationFederal home loan banks . _RFC Mortgage CompanyFederal National Mortgage AssociationUnited States Housing Authority

Farm credit agencies:Federal Farm Mortgage Corporation _ . . .Federal land banksFederal intermediate credit banksBanks for cooperativesProduction credit corporations .Regional agricultural credit corporationsCommodity Credit CorporationFarm Credit Administration __Farm Security Administration

Insurance agencies:Federal Crop Insurance CorporationFederal Deposit Insurance Corporation _._ _Federal Savings and Loan Insurance Cor-

porationFederal Housing Administration

Export-Import Bank of WashingtonTennessee Valley AuthorityXJ S Maritime CommissionRural Electrification AdministrationPublic Works AdministrationOther

Total

Assets

Totalloansand

preferredstock

1,6132

2,01517369

198306

6221,804

2618362

7178261469

52

144

313038294

8,826

Cash

1230)

15949

0)

20

225423170)151714

819

1161

20

14

594

U. S.Govt.directobliga-tions

51

53

6

117362347

448

2532

6

844

Guaran-teed

obliga-tions

11

0)

8

103

123

Accountsand

otherreceiv-ables

2344

61243

53175

21

0)1

1680)

30

0)37

329418

206

15

671

Businessproperty

0)0)

3

7

(0

127

60)0)

4

0)

10)40347

65

664

Propertyheld for

sale

45367

308

11

1066

0)

0)786

1

27

10

1

1,625

LiabilitiesBonds, notes, and

debentures

Guar-anteed by

UnitedStates

2,102

2,417

226

1,269

906

17

6,937

Other

0)76

85

372 975

247

0)

2

8

15

1, 445

1 Less than $500,000.2 Excludes Federal land bank bonds in the amount of $761,000,000 held by Federal Farm Mortgage Corporation.

NOVEMBER 1941 1167


RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS[Amounts outstanding at end of month. In millions of dollars]

Loans to financial institutionsLoans on preferred stock of banks and insur-

ance companies ._ __ __Preferred stock, capital notes, and debentures.Loans to railroads (including receivers) _ _Loans for self-liquidating projects.. _ _Loans to industrial and commercial businesses:

For national defenseOther

Loan to Great BritainLoans to drainage, levee, and irrigation dis-

trictsOther loansSecurities purchased from Public Works Ad-

ministration

Total loans and investments, otherthan interagency _ _

Preferred stock of, and loans to Export-Im-port Bank

Loans to Rural Electrification AdministrationCapital stock of, and loans to RFC Mortgage

CompanyCapital stock of, and loans to Federal Na-

tional Mortgage Association.Loans to Tennessee Valley AuthorityCapital stock of, and loans to national defense

companies1

Loans to Farm Security AdministrationCapital stock of Federal Home Loan Banks. _

Total loans and investments _

1940

Sept.

142

5746047038

3129

835

116

1,503

74146

61

818

1010

1,894

Oct.

142

5746047047

3128

835

116

1,511

74146

63

858

2421

1,932

Nov.

167

5645547336

6126

845

115

1,522

99146

64

878

3323

1,983

Dec.

172

5345247436

7121

835

116

1,519

99146

67

908

4528

2,003

1941

Jan.

166

5044748237

9119

835

114

1,512

174152

68

938

6318

2,089

Feb.

162

4944248235

11117

835

113

1,499

174157

68

968

8333

125

2,244

Mar.

158

4943748735

17115

835

113

1,499

174164

69

998

12160

125

2,319

Apr.

154

4943448736

21114

765

113

1,488

174168

71

998

16881

125

2,383

M a y

149

4843247037

61113

745

111

1,503

174175

71

1018

21997

125

2,473

June

145

4842947037

65111

795

122

1,511

174182

73

1028

282116125

2,573

July

139

4842546281

70109

795

120

1,538

174190

75

1038

32789

125

2,630

Aug.

134

4841046181

71108100

775

117

1,613

174195

76

1058

38096

125

2,772

Sept.

131

4840746181

82106125

775

117

1,640

174202

77

1078

527101125

2,962

Including Metals Reserve Company, Rubber Reserve Company, Defense Plant Corporation, and Defense Supplies Corporation.

FARM CREDIT ADMINISTRATION

LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS


End of year or month

193419351936193719381939

1940—September.OctoberNovember.December.

1941—January-February .MarchAprilMayJuneJulyAugustSeptember.

Total

2,9643,3213,3633,3353,2113,058

3,0353. 0082,9862,973

2.9642.9702,9762,9822,9882,9882,9862.9752,954

Farm mortgage loans

Total

2,5332.8672,9012,8482,7852,596

2,5262,5172,5082,500

2,4892, 4852,4752,4672,4582,4482,4372,4262,411

Federalland

banks

1,9162,0722,0642,035,982,905

,867,862,856,851

,844,842,836,830,824,818,811,804,795

LandBankCom-mis-

sioner

617795837813753

659655652648

645643640637634630626622616

Short-term credit

Total i

315358337367364364

420394383381

382393413431440450453450431

Federalinter-

mediatecredit

banks 2

Produc-tion

creditassocia-tions

6194105138148154

195180173172

174182195207215221224221208

Emer-gency

crop anddrought

reliefloans

111173165173171168

178173170168

167169175179179179179177174

Loans to cooperatives

Total 3

1179712512011299

89969693

9291888590909699111

Banksfor

cooper-atives

Agricul-tural

Market-ing Actrevolv-

ing fund

554454312421

16171716

161616161616161616

1 Including loans of regional agricultural credit corporations (not shown in the breakdown) amounting to $87,000,000 in 1934, $43,000,000 in 1935,$25,000,000 in 1936, $16,000,000 in 1937, $11,000,000 in 1938, $8,000,000 in 1939, and from $6,000,000-$8,000,000 since 1939.

2 Exclusive of loans to and discounts for regional agricultural credit, corporations, production credit associations, and banks for cooperatives,amounting to a total of $225,000,000 in September 1941. These loans and discounts are included in the columns for the institutions concerned.

3 Including loans of Federal intermediate credit banks to cooperatives (not shown in the breakdown) amounting to $34,000,000 in 1934, $3,000,000in 1935, and a negligible amount since 1935.



FEDERAL HOME MORTGAGE AND HOUSING AGENCIES

LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS


End ofmonth

1933—June _D e c . - .

1934—June. _Dec

1935—June.-Dec

1936—June „Dec

1937—June.__Dec

1938—June.. .Dec

1939—June..Dec

1940—June__ _

1940— Sept.—Oct. ..NovDec

1941—JanFeb.___Mar..._AprMay -June —July.. . .AugSept.—

HomeOwn-ers'

LoanCor-pora-tion

1321,2172,3792,6582,8972,9452,7652,5562,3982,2652,1692,0812,0382,013

1,9881,9811,9691,956

1,9421,9291,9141,9001,8851,8701,8551,8411,825

Fed-eral

HomeLoan

Banks i

4785858779

103119145167200196199169181157

176182186201

171157146142145170168173178

Fed-eral

savingsandloanasso-

ciations 2

81186348475587742854948

1,0341,1361,2711. 405

L,4881,515L, 5331,546

1,564L, 579L,6001,628L,658

fi881,7181,751

RFCMort-gageCom-pany

6183649684154575760

61636567

686869707065676970

Fed-eralNa-

tionalMort-gageAsso-

ciation

3880

125147163

171175178181

185187190190192194196198200

UnitedStatesHous-

ingAu-

thority

10133268

12387

129168176186

228211233266288316296306332

1 Loans and discounts to member institutions of the Federal HomeLoan Bank System.2 Federal Home Loan Bank Board estimates for all Federal savings&nd loan associations which are private institutions chartered andsupervised by the Federal Home Loan Bank Board.

3 Not available.

POSTAL SAVINGS SYSTEM[In millions of dollars]

End of month

1934—JuneDecember

1935—JuneDecember

1936—JuneDecember

1937—JuneDecember

1938—JuneDecember

1939—JuneDecember

1940—June

1940—SeptemberOctoberNovemberDecember

1941—JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptember

Depos-itorsbal-

ances1

1,1981,2071.2051J2011,2321,2601,2681,2701,2521,2521,2621,2791,293

1,2951,2961,2981,304

1,3141,3181,3201,3171,3101,3041,307

PI, 309?1, 311

Assets

Total

1,2251,2371,2361,2371,2651,2961,3071,3081,2901,2911,3041,3191,337

1,3391,3381,3411,348

1, 3561,3611,3641,3621,3591,3561,359

Cashin de-posi-tory

banks

69554038528720314513613011586685343

40383736

34333130303029

U. S. Governmentsecurities

Total

453597777853967

1,0581,1001,0971,1031,1321,1571,1921,224

1,2241,2241,2241,224

1, 2391,2451,2591, 2591,2541,2511,251

Di-rectobli-ga-

tions

418467630706800891933930936965

1,0111,0461,078

1,0781,0781,0781,078

1,0931,0981,1131,1131,1081,1041,104

Guar-an-teedobli-ga-

tions

35130147147167167167167167167146146146

146146146146

146146146146146146146

Cashre-

servefunds,etc2

761007498959371807373787469

74758088

84837473757580

p Preliminary,i 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, pp. 501-502.

LOANS INSURED BY FEDERAL HOUSING ADMINISTRATIONl


Year ormonth

1934193519361937193819391940

1940— Sept.. .OctNov.—

1941—JanFeb..._Mar.—AprMay—June..-July —Aug.___Sept.—

Total

30320557495694954

1,026

10711299

104

10284847589

10510591

107

Prop-ertyim-

prove-ment(Title

I)

3022424660

160208251

33292824

202017122227201831

Newsmallhomecon-

struc-tion

(TitleI)

132526

32

2

212113322

Homemort-gages(Title

ID

94309424473669736

68806978

796162606575827073

Mort-gages onrental

andgroup

housing(Title

ID

22

11485113

21

*1321

De-fensehous-

ing(Title

VI)

11

i Figures represent gross insurance written during the period and donot take account of principal repayments on previously insured loans.

* Less than $500,000.

INSURED FHA HOME MORTGAGES (TITLE II) HELD INPORTFOLIO BY CLASSES OF INSTITUTIONS1


End ofmonth

1936—Dec1937—Dec1938—Mar

June__. _SeptDec

1939—MarJune _ - _SeptDec

1940—MarJune _ _ .SeptDec

1941—MarJuneSept

Total

365771856933

1,0491,1991,3491,4781,6221,7931,9492,0752,2322,4091,5982,7552,942

Com-mer-cial

banks

228431472509565634699759824903971

1,0261,0931,1621,2471,3181,381

Mu-tualsav-ings

banks

827262832384450577190

100112130146157190

Sav-ingsandloan

associ-ations

56110119127137149159167178192201208216224230237246

Insur-ancecom-panies

41118146165187212241271302341393432480542606668722

Fed-eral

agen-cies 2

53242445677

114137148153171182190201210221225

Other3

2753516072899294

113133123127141150159154178

1 Gross amount of mortgages held, does not include terminated mort-gages and cases in transit to or being audited at the Federal HousingAdministration.2 The RFC Mortgage Company, the Federal National MortgageAssociation, and the United States Housing Corporation.3 Including mortgage companies, finance companies industrial banks,endowed institutions, private and State benefit funds, etc.

N O V E M B E R 1 9 4 1 1169


BUSINESS INDEXES

Year andmonth

1919192019211922192319241925192619271928192919301931193219331934193519361937193819391940

1938

July _ _AugustSeptemberOctoberNovemberDecember

1939

JanuaryFebruaryMarchAprilM a yJuneJulyAugustSeptemberOctoberNovemberDecember

1940

JanuaryFebruary ,MarchAprilMayJuneJulyAugustSeptember _OctoberNovemberDecember

1941

JanuaryFebruaryMarchApr i l .M a y .JuneJulyAugustSeptemberOctobere

[The terms "adjusted

Incomepay-

ments(value)1

1935-39=100

Ad-justed

122.3110.994.373.269.580 287.2

101.2107.298.9

105.5112.5

97.298.199.1

100.2100.7101.4

101.3101.9103.0101.8103.6104.8104.6106.5107.8109.1109.9111.2

110. 6110.1108.8109.1110.1110.2111.7113.3114.6115.8116.6119.0

121.3123.0123.7124.5128.4

131.0133. 3134.8

P136. 9

' and '

[ndustrial production(physical volume) 2 *

1935-39=100

Total

Ad-justed

86909396

100101

101101101'9798

103105

106114121124125

122116113112116122122124127130134139

140144147144154159160160

«163

Unad-justed

72755873888290969599

110917568697587

10311389

108123

849197

10010299

9799

1009899

102102106119126126122

117113112112117121120124132

135136136

135139144144155160159162

el67

Manu-factures

Dur-able

Ad-justed

84936381

10395

107114107117132986741546583

10812278

109138

717883899697

979796939399

102108118129134138

134124118116123133136143151155157164

171176180180190195199199

Non-dur-able

Ad-justed

6260676772697679838593847970798190

10010695

108113

9599

100100103104

104104104^103104106106108111115117117

113110107107110114113112112116120124

123126127131135139138139

P138

'unadjusted"

Min-erals

Ad-justed

71836671988992

10010099

1079380

'6776808699

11297

106117

9497

'97'99102102

103101104'91'97

1 0 410792

114119120

114

118114117119117119

119114116113118

118

119118125'95

126'132131131P130el29

refer to adjustment of monthly figures for i

Constructioncontracts

awarded (value) 3

1923-25=100

Total

Ad-justed

636366798494

1221291291351179263282532376569647281

696678829696

867369676363677373768386

75636264647485909395

111115

1039994

103101117139152

Resi-den-tial

Ad-Justed

443044688195

124121117126878037131112213741456072

496366678687

655855585568626768686160

535657626469778282858790

8476748088

101115112

P101

Allother

Ad-justed

799065888694

12013513914214212584403748607074808189

687796

102128128

111858074686771787682

101107

9368666665779198

101103130136

117118109121111129158184

P207

Employment *

Non-agri-cul-

tural5

1935-39= 100

Ad-justed

107.6100.992.382.883.390.594.2

100.0105.098.5

102.3105.6

97.097.698.298.799.6

100.3

100.5100.7100.899.8

100.6101.7102.0102.4103.0104.2104.9105.4

104.9104.2104.0103.3103.8104.2104.7105.6106.1107.3108.8110.6

111.0111.6111.4111.5112.9114.2116.0116.4

P116.2

Factory1923-25=100

Ad-justed

87.289.391.092.094.896.7

96.896.896.796.696.397.398.499.0

100.8104.8107.0108.2

107.6105.8104.0102.8102.8103.9105.1107.4108.9111.4114.2116.6

118.3118.6119.4122.0124.9128.7133.3133.0

P132. 5

Unad-justed

106.7107.182.090.7

103.896.499.8

101.799.599.7

106.092.478.166.373.485.791.399.0

108.690.999.9

107.5

85.990 293.694.295.396.2

94.596.197.096.995.996.496.699.5

103.7107.3107.5107.8

105.0105.0104.4103.2102.5103.1103.2107.4111.4113.8114.7116.2

115.5117.8119.9122.6124.9127.8

130. 5132.8

P135. 6

Fac-torypay-

rolls *1923-25

= 100

Unad-justed

98.0117.275.681.2

102.996.0

101.1104.2102.4103.5110.489.467.846.760.164.674.186.8

102.578.592.2

105.4

71.777.982.385.085.388.1

84.787.188.886.886.387.985.891.295.4

103.2103.2105.4

99.899.399.897.997.899.598.2

105.5111.6116.2116.4122.4

120.7126.8131.2134.7144.1152.1

152. 6157.8

P163. 0

5easonal variation |

Freight-

load-ings*

1935-39= 100

Ad-justed

12012911012114213914615214714815213110578828992

10711189

101109

889092959596

98959487909799

101111114114110

111105100103106111110112112110116119

122124126112135139138139130

el27

Depart-ment

sales(value) *6

1923-25= 100

Ad-justed

789487889899

10310610710811110292696775798892859094

838385868788

888888888786878890929395

92908989899192989794

100101

101103103104105104115134116

105

Whole-sale

com-modityprices *

1926= 100

Unad-justed

138 6•I K A A

97 6Qfi 7

100 698 1

ifjQ e

100 0QK A

Qfi 7

95.386 473.064.865 974 Q80.080 886.378 677 178.6

78 878 178 377 677 577 0

76 976 976 776 276 275 675 475 079 179 479 279.2

79 478 778 478 678 477 577 777 478.078 779.680.0

80.880.681.583.284.987 188.890.391.8

^92. 0

Costof

liv-ing 4

1938-39-100

Unad-justed

124 8143 9127 71 1 Q >f

191 Q

122 2ini A

19fi 4194 n199 A122.8119 4108.797.692 4QK 7

98.199 1

102.7100 899 4

100.2

100 7

100 2

99 1

98 6

100 6

09.6

99 8

100 8

100.4100 2100.1100.7

100 8100.8101 2102.2102.9104 6

105. 3106. 2108.1

p Preliminary. * Average per working day. r Revised. e Estimated.1 Department of Commerce series on value of payments to individuals.2 For indexes by groups or industries, see pp. 1171-1174; for description, see BULLETIN for September 1941, pp. 878-881, and for August 1940,

pp. 753-771.3 Based on F. W. Dodge Corporation data; for description, see p. 358 of BULLETIN for July 1931; by groups, see p. 1179.4 The unadjusted indexes of employment and payrolls, wholesale commodity prices, and cost of living are compiled by or based on data of the

Bureau of Labor Statistics. For description of seasonally adjusted index of factory employment compiled by the Federal Reserve Board of Gov-ernors, see BULLETIN for October 1938, pp. 835-837, and for October 1939, p. 878. For indexes by groups or industries see pp. 1175-1178 for employ-ment and payrolls and p. 1182 for prices.

5 Excludes military and naval forces.6 For sales comparisons by cities and by departments see p. 1181 of this BULLETIN.Back figures in BULLETIN.—For industrial production, August 1940, pp. 825-882 and Sept. 1941, pp. 933-937; for factory employment and payrolls,

October 1938, pp. 838-866, October 1939, pp. 879-887, and February 1941, p. 166; for department store sales, October 1938, p. 918, and January 1941,p. 65; for freight-car loadings, June 1941 pp. 529-533.



INDUSTRIAL PRODUCTION, BY INDUSTRIES(Adjusted for Seasoned Variation)

Industry

Industrial Production—Totall..

Manufactures—Total*D u r a b l e 1

Nondurable

Iron and SteelPig ironSteel _ . .

Open hear th and Bessemer ___Electric

Machinery.

Transportation Equipment2..AircraftAutomobile bodies, parts, and

assembly . .Automobile factory salesRailroad carsLocomotives _Shipbuilding (private yards)

Nonferrous Metals and ProductsNonferrous metal smelting^ _ _

Copper smeltingZinc smelting

Copper deliveriesLead shipmentsZinc shipments .Tin consumption

Lumber and Products.. . .Lumber _Furniture _

Stone, Clay and Glass ProductsCement__Common and face brick

Common brink"Face brick

Glass containers.Polished plate glass

Textiles and ProductsTextile fabrics.

Cotton consumptionRayon deliveriesSilk deliveriesWool textiles

Carpet wool consumptionApparel wool consumptionWoolen yarnWorsted yarnWoolen and worsted cloth.

Leather and ProductsLeather tanning

Cattle hide leathersCalf and kip leathersGoat and kid leathers

Shoes .

Manufactured Food ProductsWheat flour _Cane sugar meltingsManufactured dairy products

Ice creamButterCheese.Canned and dried milk

Meat packingPork and lardBeefVealLamb and mutton.

Other manufactured foods . _

Alcoholic BeveragesMalt liquor .WhiskeyOther distilled spiritsRectified spirits ._

Tobacco ProductsCigarsCigarettesManufactured tobacco and snuflL _

[Index n u m b e r s of t h e B o a r d of Governors . ]•

1940

A u g .

124

126143112

163162166159219

138

U9460

12171

127123213

137132133140134128139117

114113115

119115129130125114114

11311112412761

10695

108104117105

9792988383

101

1149990

110104105115132119141999196

115

929144

21587

10610511096

Sept.

127

129151112

169167175164247

145

159508

121110148140220

143132129148154126141113

121121121

124125131124146116118

rll5113

rll912065

123109137120135122

959095828399

11010086

'116114

rlO7"121133121147959295

109

no471

••232126

108102113100

Oct.

130

134155116

172169178167259

149

165552

125130148160227

149133130147170132142109

123124122

126133126126127115111

123121126129

71132125152124149127

9793

1008581

100

11810411612212810811413512715210198

106118

10310080

118134

115105120112

Nov.

134

137157120

171173177164263

152

171600

125134166168226

155135135147179145144112

127128125

130140135136132114113

13513213914677

140128160131152140

1071001109282

112

11799

136117122106117126133159106102110116

96947786

131

113103119106

Dec.

139

142164124

174173181166283

164

177635

125129172186263

162137135152190158146115

132133128

140155147147148119117

14013514215674

145131163132157149

1091021138686

113

12110412212513111011813813416510797

109120

1011048585

105

114108121101

935-39 average = 100]

1941

Jan.

140

144171123

179177186172291

168

190685

134144178204282

167137133153201161149119

137139132

154181

123137

13813314415669

136119149125150142

1071021158879

110

11798

12413113811912313611412111086

112117

10510578

112126

113111118101

Feb.

144

148176126

179176187171300

177

203741

143152182222307

173142140

.158209165148130

135139129

158183

131138

14314015214867

149143165134163153

1081031129287

112

12010510712713211812412912614510994

112119

10810681

132131

11611012596

Mar.

147

151180127

184178193177305

185

207768

142143178234335

179142136163219172146143

128125132

150156

139135

14614315615071

152146179135163154

11411311911297

115

12110512212512911813112413415911091

111120

10410080

132130

11710912797

Apr.

144

153180131

181170193172340

194

197818

124122196266352

183147145164221186147147

132128139

142139

135142

150146160158

74152139171140166156

114109118

9796

117

12311012313514411913813512614311096

108122

10710282

140137

120117127101

M a y

154

159190135

184175196174355

206

228872

152151218280380

189148144170231205144147

132122151

141134

148142

15715216416971

165148196153178167

123118129

99105126

124110119134

11713413913214712097

109122

11410690

129170

119109131100

June

159

164195139

184179196173359

214

243926

161148235308425

184144136170222210144141

135125155

150138

155152

15615116017373

1G3149190151178165

130121131

98113136

127107129130

11112113212413412091

101129

m10794

154206

11810613197

July

160

165199138

185181197174365

216

2571,003

171154

••233342

'467

'188142131173234

'200142155

W131161

151143

154146

155151162173r 7 7

157126177153174160

'129124136'93

»116rl32

126103102133

11312814112513212396

110128

130115108206190

11410612397

Aug.

160

165199139

185182198172382

223

2401,123

13993

236355484

186145135175221196143161

140134153

154148

158133

154149160170

56166148181162179166

12112314010396

119

13398

129136

10913416513414912494

105135

12811093

206219

11810912996

Sept.

P162

P167P 2 0 4P 1 3 8

192185207179405

P228

P252

P I , 212

P 1 3 274

P 2 5 6?>370P 5 5 7

P187

P145P 1 3 5

175P 2 2 5

146

P137P 1 2 8P 1 5 4

P156

154

163120

P152P 1 4 6

156P 1 6 8

P 3 4P 1 7 3P 1 5 7P215P 1 6 3

P182P 1 7 1

P119

P116

P13499

P 1 4 0

10914518312613911810199

P137

13111894

262170

12110413799

r Revised. P Preliminary.1 Includes manufacturing in Government arsenals and quartermaster depots not available for publication separately.2 Includes shipbuilding in Government yards not available for publication separately.3 Includes also lead production shown under "Minerals."

NOVEMBER 1941 1171


Industrial Production, by Industries (Adjusted for Seasoned Variation)—Continued

Industry

Paper and Paper Products1Paper and pulp

PulpGroundwood pulpSoda pulpSulphate pulpSulphite pulp

PaperPaperboard __Fine paperNewsprint productionPrinting paperTissue and absorbent paperWrapping paper

Printing and Publishing 2Newsprint consumption

Petroleum and Coal ProductsPetroleum refining

GasolineFuel oilLubricating oilKerosene _

Coke-Byproduct coke-Beehive coke __ __ __

Chemicals

Rubber productsRubber consumptionTires and tubes

Pneumatic tiresInner tubes

Minerals—Total

FuelsBituminous coalAnthraciteCrude petroleum

MetalsIron ore shipmentsCopperLeadZinc 3Gold3

Silver 3

[Index numbers of the Board of Governors.

1940

Aug.

124123150119120179148118121114113117121117

110104

11810910911698111140137263

115

115116105106102

r114

112121115108

159139114117108106

Sept.

120118150117114185145113118107111111125107

108104

116112113113102121143139267

114

124125109110107

115119108114

n27155137112120108103

Oct.

122121148118124184140117123110112114124110

109104

116112111115109123145141266

116

126128109110103

113

1099894115

163141117118120120

Nov.

125124150123113186143120132114109114120114

110106

118114112116115123147143281

118

182133116118107

118

11811297115

148192143113120131127

Dec.

180131159119142200148127143114109117131120

112107

120116115120107130149143378

121

144147117118115

r118

113115108113

186145116123129129

1935-39 average = 100]

1941

Jan.

129129153119128190144126138110113119132120

111103

122117117120112120150143367

122

141143123124121

r119

11411798114

18714811612513112S

Feb.

128128153122129193144124134110115123125119

114105

122117118122104123152145398

123

158156128128127

118

113114102113

r148189153116126125126

Mar.

132133160119137199153129138114115126133124

116106

128

120121105113154145434

123

155158134135132

125

121149102112

148191148118125126

Apr.

134136161121135199156132143115114131132129

118106

121

12012011811713313469

132

158161131132130r95

862271113

200152119133120129

May

142145162120141203155142158127114138137139

122107

125122124119118115148141386

135

162164144144145

'126

12114980114

197159115127131122

June

145149175121151216170145154134114149144140

128106

127123123122134104154145435

143

192196152151155

'132

129153126120

200155117136125128

July

147152167122149203163150170140112149142138

106

128124123124133108154146429

153156126127125

r131

127146137119

r15l207156114125120124

Aug.

147152172128151215164148161147113149140139

129109

130126126127132116154146453

145

130132117118110

131

129147162119

144203155116131

Sept.

158

P127105

P426

131134108108103

P130

P135P127P125

P143203154

P137

r Revised. PPreliminary.1 Includes also paperboard container production held constant, on a seasonally adjusted basis, at 128 since July 1940 when figures were last

reported.2 Includes also printing paper production shown under "Paper."3 Revised series. Back figures may be obtained from Division of Research and Statistics.

NOTE.—For description and back figures see BULLETIN for September 1941, pages 878-881 and 933-937, and August 1940, pages 753-771 and825-882.



INDUSTRIAL PRODUCTION, BY INDUSTRIES(Without Seasonal Adjustment)

llndex numbers of the Board of Governors. 1935-39 average = 100]

Industry1940

Aug. Sept. Oct. Nov. Dec.

1941

Jan. Feb Mar. Apr. M a y June July Aug. Sept.

P!68

P173

P146

185207179405

P228

P 1 , 2 1 2

P186PU5

175P225

146

P162

4184

Industrial Production—Totall-Manufactures—Total*

Durable 1Nondurable

Iron and SteelPig ironSteel

Open hearth and Bessemer . . .Electric

Machinery

Transportation Equipment2

AircraftAutomobile bodies, parts, and

assemblyAutomobile factory salesRailroad carsLocomotivesShipbuilding (private yards)

Nonferrous Metals and ProductsNonferrous metal smelting3

Copper smeltingZinc smelting

Copper deliveriesLead shipmentsZinc shipmentsTin consumption

Lumber and ProductsLumberFurniture

Stone, Clay and Glass ProductsCementCommon and face brick

Common brickFace brick

Glass containersPolished plate glass

Textiles and ProductsTextile fabrics

Cotton consumptionRayon deliveriesSilk deliveriesWool textiles

Carpet wool consumption_Apparel wool consumptionWoolen yarnWorsted yarnWoolen and worsted cloth.

Leather and ProductsLeather tanning

Cattle hide leathersCalf and kip leathersGoat and kid leathers

Shoes

Manufactured Food ProductsWheat flourCane sugar meltingsManufactured dairy products

Ice creamButterCheeseCanned and dried milk

Meat packingPork and lardBeefVealLamb and mutton

Other manufactured foods

Alcoholic BeveragesMalt liquorWhiskeyOther distilled spiritsRectified spirits

Tobacco ProductsCigarsCigarettesManufactured tobacco and snuff.

124

125139114

158161161154212

135

460

9123130124202

133127127133133122128115

123126118

13314115015314212493

11110811413757109101113108120107

10489938781114

131100951451691161301361021061009295136

901062410368

11010811697

132

133150119

166164171161242

154.508

11989135137213

143131129143156127138108

134127

139150161162161118118

118115'11913865120111137119130116

10289948184111

115102'118124106125123112117107101107140

'109'95'57

'318134

118117121108

'135

138159121

171169176165257

149

179552

142142141152229

152138138147173138143108

132133

142154154160140119127

12612412914477129124145121149122

931018280102

113113969295107108127143110108113132

1088276

314174

127118115

136

139161131

172173178166265

152

185600

143161153163219

158137139147181155147112

126123130

136145147149141115129

13713413915187139126162129152139

1011148779

1161031128073848988151191111104107117

1047796181207

115123114105

136

140164

174173181166283

164

188635

138152172186263

138135152188165147112

121114133

125124125120133111141

14013614215479145131163132157149

104115

115100

87829515921210792104115

105140

108

135

139166118

179177186172291

685

138151178204282

166137133153200166149114

116113123

110100

110144

13813314415472136119149125150142

1041031168779106

104991038469958910313315711083118103

87841047392

10890119

144171

179176187171300

177

207741

148161182222307

173142140158209165148130

119115129

112102

120131

14314015214868149143165134163153

1171121259791121

1041041059278101961101221459883112103

949010679113

1089611895

144

149178136

184178193177305

185

214

150160178234335

179142136163219172146146

123118133

125117

144

153183139

181170193172340

194

818

136139196266352

184147145164221186147151

130128135

142139

155

160193134

184175196174355

872

152164218280380

190148144170231205144153

134130142

164163

160

165198138

184179196173359

214

W

161164235308425

185144136170222210144148

140135150

172174

159

164197138

185181197174365

216

1,003

136134'233342'467

188141131173234'200142154

144142149

166177

162

167198143

185182198172382

2211,123

11847236355484

145135175221196143159

152148158

172181

130141

14714315615074152146179135163154

12211212110596128

1071021351059910510712112214310086107105

100

124

110100119

135142

15014616015873152139171140166156

1181101189699123

11210313513413811813315211913510295105107

1081119184122

113111118100

159142

15715216416966165148196153178167

12011512694103124

120100117182

163149

15515016017366163149190151178165

119118125100113119

129101132199

160

155150162173'69157126177153174160

'125'120'127'102'115'128

138102117193

151177200132147120101111111

1201249077149

121108133100

1551861951211301189296122

1291377591165

128113144

13716517211911912595104137

1311425997160

123111138

172109

15414816017050166148181162179166

12811913310894135

15399136183

12015116911611212695104159

12851

113136

166120

P152P146156

P173*>157P215^163P182

P163114

P143

108150168119111132111111176

13712075

359180

132120146107

' Revised. * Preliminary.1 Includes manufacturing in Government arsenals and quartermaster depots not available for publication separately.2 Includes shipbuilding in Government yards not available for publication separately.3 Includes also lead production shown under "Minerals."

NOVEMBER 1941 1173


Industrial Production, by Industries (Without Seasonal Adjustment)—Continued[Index numbers of the Board of Governors. 1935-39 average = 100]

Industry

Paper and Paper Products1

Paper and pulpPulp

Groundwood pulpSoda pulpSulphate pulpSulphite pulp

PaperPaperboardFine paperNewsprint productionPrinting paperTissue and absorbent paperWrapping paper

Printing and Publishing 2Newsprint consumption _

Petroleum and Coal Products.Petroleum refining

GasolineFuel oilLubricating oilKerosene

CokeByproduct cokeBeehive coke

Chemicals..

Rubber ProductsRubber consumption _Tires and tubes

Pneumatic tires—.Inner tubes

Minerals—Total _Fuels

Bituminous coal_.AnthraciteCrude petroleum..

MetalsIron ore shipments..CopperLeadZinc 3

GoldsSilvers

1940

Aug. Sept. Oct. Nov. Dec.

121148101120179148117123107110113121116

10291

mno11211497107139137210112

115116105106102

10911185111

135114111118104

124120147102115185145116125102111110131108

108105

118114116114102119142139222

116

128109110107

116124103114

r!72301136112116126104

127124150110124188143120130110112115129113

113111

118114114116109123145141274

120

126128109110103

122

11211099114

r178294146117118141119

m124151126113186144120132110112113119114112111

119115113117115126148143309

120

185138116118107

119

11512898111

'146162147114120148128

124154124138190144120127112110116126116

112109

119115112122106131149143378

122

187140117118115

116127115111

146118123133129

1941

Jan. Feb. Mar. Apr. May June July Aug. Sept

126128154124128192144124132111113119128120

109

115113123108126150143367

146148123124121

117130114111

'95

145116125125129

131133159127133199148129138118113126130124

115104

120115114'123103124152145398

123

151153128128127

118134112112

155116126112129

137164128141203156133144122115132134126

110

119114114"118104115154145434

155158134135132

116

121143105114

151116125111131

137140165136139199159136146126114136135130

12k113

rl20119118"11712211913313469

167160131132130

96

871876116

U210156121133106130

W145165133141203155142155130115140136136

122124"119122115148141

162164144144145

127

11812688118

181323159117127113121

147173124150214167143154131115146143137

127107

124126"121134102154145435

192196152151155

123132116120

rl81326152116136116123

4'145160109141199155142161127109'140'135133me

125127122131103154146429

'189

153156126127125

130

121128107119

4344147110125115122

146150170109151215164147163138110145140138

12096

131128130124131111154146453

142

130132117118110

134

125135120122

182335152116131

167

106

131134108108103

P136

P129P140P122P125

P177311153

P137

" Revised. v Preliminary.1 Includes also paperboard container production which has been carried forward on the basis of seasonal changes since July 1940 when figures

were last reported.2 Includes also printing paper production shown under "Paper."3 Revised series. Back figures may be obtained from Division of Research and Statistics.NOTE.—For description and back figures, see BULLETIN for September 1941, pages 878-881 and 933-937, and August 1940, pages 753-771 and

825-882.



FACTORY EMPLOYMENT, BY INDUSTRIES(Adjusted for Seasonal Variation)

[Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937

Indust ry and group

Total*Durable goods*Nondurable goods* __

Iron, Steel, ProductsBlast furnaces, steel works._.Bolts, nuts, washers, rivetsCast-iron pipeCutlery, edge tools _ForgingsHardwarePlumbers' suppliesStamped, enameled wareSteam, hot-water heating . . .StovesStructural, ornamental-Tin cans, tinwareToolsWirework .

MachineryAgricultural implementsCash registers, etcElectrical machineryEngines, turbines, etc.Foundry, machine-shop products.Machine toolsRadios, phonographs _ _Textile machineryTypewriters

Transportation EquipmentAircraftAutomobiles.Cars, electric-, steam-railroadLocomotivesShipbuilding.

Nonferrous Metals, ProductsAluminum* _Brass, bronze, copper . . .Clocks, watchesJewelryLighting equipmentSilverware, plated wareSmelting, refining

Lumber, ProductsFurniture _Lumber, mill workLumber, sawmills

Stone, Clay, Glass ProductsBrick, tile, terra cottaCementGlassMarble, granite, slatePottery

Textiles, ProductsFabrics _ .

Carpets, rugs___ _Cotton goodsCotton small waresDyeing, finishing textilesHats, fur-feltHosieryKnitted outerwearKnit ted underwearKnitted clothSilk, rayon goods .Woolen, worsted goods..

Wearing apparel . .Clothing, men's __Clothing, women'sCorsets, allied garmentsMen's furnishingsMillinery _ _Shirts, collars. .

1940

Aug.

107.4104.3110.2

111.112311678

104749887

1699196789898

152

120.013912910717610124714576

119

120.93,479

1075033

186

115.71991409899927092

69.0906362

81.86069

1074594

101.192.6729379

12883

1387275

1476286

116.110416411212573

118

Sept.

108.9107.4110.3

112.912311981

10777

10289

17992958196

101170

122.614113211118210324713879

123

ISO. 23,881

1165536

187

118.620214710094

1007292

70.6916564

83.06170

1094694

101.993.5759481

12984

1386974

1516190

116.510416511212678

119

Oct.

111.4111.2111.5

116.112512184

10981

10590

18897988499

106189

126.614313211619710725713481

126

140.24,243

1255839

195

122.320715310196

1037494

71.S916864

84.76172

1124696

102.695.2799582

12980

1407075

1536393

114.810216411212274

117

Nov.

114.2114.6113.8

118.912712889

11083

10994

19010010086

103111201

ISO. 914013412021111026514283

128

14S. 94,447

1276442

204

126. S21416210198

1057594

73.6937166

88.46574

11745

100

105. S97.7829787

12984

1417176

1516599

118.010916811411868

117

Dec.

116.6117.6115.7

122.413013589

11088

11398

19610310891

104116207

136.014313712621811427515086

130

145.64,731

1246746

220

129.42181681021011067696

75 2967267

90 46876

11746

105

107.298.7829990

13285

1447477

1496498

121.911517011411669

122

1923-25 average=100

1941

Jan.

118.3121.1115.6

124.813313988

11090

11399

19410611396

109121206

141.214713713123711828615589

131

150.45,089

1237552

244

1SS.S2291731071021107798

76.3977468

94.67575

12046

108

107. S98 8859992

13283

1446981

1446398

122.011416611411676

131

Feb.

118.6122.1115.2

125.5133145

9210894

11498

201106106100112126208

144.214014013723912029616592

110

152 95 398

1237155

262

135.122417610910511279

100

75 5987267

92 97476

11647

108

107.199 184

10093

13483

1426978

1416498

120.511116611311882

126

Mar.

119.4123.0115.9

126.213315192

11096

116100202107106100113128208

148.112614614224312430417895

134

154.15 509

1237056

268

136.222017911110711079

101

74 0987165

92 37175

11846

108

107.6100 483

10194

13683

1426878

14366

102119.311016411411878

125

Apr.

122.0126.3118.0

128.313615393

114100115101204109107101113133203

155.815815114724512931518998

138

'158 95 813

1257059

'286

138.922918111511111281

101

74 2101

7065

92 37074

12145

109

109.8103 386

10397

13880

1417179

14169

109119.811415911411978

128

M a y

124 9129.5120.5

132.014016094

117102116102214111110103122

207

161.6166150153259134326197101143

'164.86 121

1287464

'302

140.723418211811311282

102

74 61046964

92 16973

12245

109

112.9105 989

10610314183

1447681

15574

109124.012216111612173

131

June

128 7134.0

-123.7

136.0145166

95122

118102220114114104129

214

'167.3170163159275

rl39337184104150

'174. 66 538

132r8167

'342

144.123019012111511684

102

75 9106

7165

93 76974

12444

116

116.1109 090

11110714486

1468179

16375

110127.012417011912468

133

July

133.3'140. 8126.1

'139.014916995

130111

r105102228123121105131142218

'173.0175168164293

349191107155

'196 67 208

r149

75••387

148.323819312512012394

103

'78 9108

7568

98 67376

13143

126

120.1111 1

8911311014986

1498590

16272

112135.112419411913875

135

Aug.

133.0141.1125.3

140.315017394

130111116103232126115106132146202

176.6182170168314144366187108157

192 27 960

1378779

397

148.124419512111812287

105

78 4107

7668

98 47477

13041

123

117.1109 691

11511014379

1448388

16067

108129.012017612213879

135

Sept.

132.5141.4124.0

139.914917297

130113114100233125109104131146229

176.7180174168323145356183111158

197.18,830

1309881

441

144.624019510510912186

103

77 7103

7568

98. 47479

12942

121

114.9107 491

11310814177

1357888

15761

111127.011917112413576

134

' Revised.* Indexes adjusted to Census of Manufactures through 1939. For back figures see BULLETIN for February 1941, p. 166, and for June 1941, p. 569.NOTE.—Figures for September 1941 are preliminary. For description and back data see the BULLETIN for October 1938, pages 835-866, and for

October 1939, pages 878-887. Underlying figures are for payroll period ending nearest middle of month.

NOVEMBER 1941 1175


Factory Employment (Adjusted)—Continued[Index numbers of the Board of Governors; adjusted to

Industry and group

Leather, ManufacturesBoots, shoesLeather _ _ __

Food, Products _BakingBeveragesButter . _Canning, preserving _ _ _ .ConfectioneryFlourIce creamSlaughtering, meat packingSugar, beet ._ __Sugar refining, cane

Tobacco ManufacturesTobacco, snuffCigars, cigarettes ___ _ „

Paper, PrintingBoxes, paperPaper, pulp __ _ _Book, job printingNewspaper, periodical printing

Chemicals, Petroleum, and CoalProductsPetroleum refiningOther than petroleum

Chemicals __Cottonseed oil, cake, mealDruggists' preparations _ _Explosives __ -FertilizersPaints, varnishesRayon, allied products _Soap

Rubber ProductsRubber boots, shoes _ _Rubber tires, inner tubesRubber goods, other

Census of Manufactures through 1937.

1940

Aug.

89.18782

129.8146272

96146887976

10810693

63.05664

116.4119117100117

122.2122122.214175

1170)

113126306

85

87.05471

149

Sept.

89.98881

126.9144265

96130867975

10911091

63.75765

115.7117117100116

121.7121121.814162

116"0)

107127309

86

89.75473

155

Oct.

91.19082

129.9144271

96152867879

11010095

63.35764

116.1117115102116

'122. 8121

'123.314392

1140)

107125310

86

91.65774

157

Nov.

93.89284

132.4144281102152907881

11410295

63.45565

116.8120116101118

120124.9.47101113(0

107127311

82

93.66075

160

Dec.

94.39385

135.6144285101157917881

12114597

64.75763

117.3122116102117

120'126.6151102113(0

103128314

87

96.86477

167

1923-25 average=100]

1941

Jan.

93.39185

13S.3143281

98149897880

11224092

66.35768

117.1123116103116

'126. 8120

'128.51541021160)

104130310

88

99.06778

171

Feb.

93.29186

131.0145279

99144887781

11114489

64.95466

117.2122117101116

'128.1120

'130.01571001180)

103130306

90

100.46979

174

Mar.

94.39288

131.3146278102139917879

11311197

64.O5465

118.5125119103117

'129. 0121

'131.116194

1190)95

134308

89

102.06980

177

Apr.

95.59390

132.5148277105140927982

11497

103

65.05466

119.8129120104117

'133. 6121136.61631101220)

112135324

91

103.97482

176

M a y

96.89490

135.0149287107147897879

11999

102

65.85467

121.2132123104117

'136. 9123

'140. 41681061290)

118136330

93

106.17883

179

June

101.09895

'137. 3151

'286105156

9080

'7812193

'101

65.85368

122.9139125104117

'140. 7125

'144.71721071320)

'124140337

94

111.78286

192

July

100.29797

'137.2149289103160977978

11989

'94

65.75367

124.8142126108117

'142. 9127

'146.81731091350)

'129145326

98

113.08287

194

Aug.

97.99496

'139. 9152298104169100

7780

1197693

64.45366

125.1143128108118

145.0127149.3179101137C1)

12414832899

113.37987

200

Sept.

98.69498

139.2151293102170917979

1218998

61.65463

124.2141129104117

144-3127148.518088

1420)

122146324

96

112.37787

196

• Revised. 1 Data not available.

TOTAL NONAGRICULTURAL EMPLOYMENT

[Thousands of persons]

Year and month

SEASONALLY ADJUSTED1940— S e ptember

October - - . .November _ _December

1941—January _FebruaryMarch . _ .AprilM a y _ - - . -J u n eJ u l yAugus t _ _ _ _ _ _ __.Sep tember . _ . . .

UNADJUSTED1940—September.

OctoberNovemberDecember. .

1941—JanuaryFebruary _ _ _March __ __AprilMay . .-June.JulyAugust _ _- _September

Totalnon-

agricul-tural

employ-ment * 2

35,93636, 32436,82737, 46037, 57137, 78737, 72437, 77238, 24338. 68039, 27339.42539, 354

36, 52836, 86736, 98637, 608

36,62136,92837, 22737, 67638, 32138.86039, 28139, 62640,065

Total 2

29, 79330,18130, 68431,317

31, 42831, 64431, 58131, 62932,10032, 53733,13033, 28233, 211

30, 38530, 72430,84331, 465

30, 47830, 78531, 08431, 53332,17832, 71733,13833, 48333, 922

Employees in nonagricultural establishments

Manu-factur-

ing*

10, 28010, 47710, 69810, 899

11, 02111,04511,10811,31611, 54511,84312, 21112,18812,144

10,47910, 66810, 73510, 856

10, 79710, 98211,15211, 37011, 54511,77711,99512,16812, 386

Mining

849835833837

849846855572877889914923908

846856853855852854864564869876888900906

Con-struc-tion

1,3181,4901,6691,974

2,0142,1321,9331,8591,6981,6441,6681,6661,701

1,5111,6541,7091,720

1,6231,6781,6311,7751,7821,8161,8951,9211,957

Trans-porta-

tion andpublic

utilities

3,0593,0533, 0533,0643,0773,0873,1053,1333,1923,2203,2643,3023,301

3,1203,1213,0653,039

3,0123,0283,0563,1133,1853,2393,2903,3263,365

Trade

6,2856,2896,3416,437

6,2986,3336,3516,4746,4496,5366,6146,6856,620

6,3216,3626,4336,884

6,1656,1736,2596,4636,4216, 5306,5126,5646,659

3

Finan-cial, serv-

ice, andmiscel-laneous

4,1744,1814,2044,2264,2334,2504,2544,2584,2804,2954,3364,3394,334

4, 2554,1874,1674,1804,1424,1644,1874,2654,3274,3534,3944,3944,420

Gov-ern-

ment 2

3,8283,8563,8863,880

3,9363, 9513,9754,0174,0594.1104,1234,1794,203

3,8533,8763,8813,931

3,8873,9063,9353,9834,0494,1264,1644,2104,229

A/Tili

taryand

navalforces

634737822884

9581,1391,3431,5541,6791,7581,8211,9341,992

634733822884

9581,1451,3431,5461,6621,7401,8571,9441,992

* Adjusted to Census of Manufactures through 1939.1 Includes self-employed persons, casual workers, and domestic servants not included in total of employees in nonagricultural establishments.3 Excludes military and naval forces.NOTE.—Unadjusted data compiled by Bureau of Labor Statistics. Figures for September 1941 are preliminary. For back figures, ad-

justed for seasonal variation, see pp. 534-535 of the BULLETIN for June 1941.



FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES(Without Seasonal Adjustment)

[Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1937. 1923-25 average=100]

Industry and group

Total*Durable goods*Nondurable goods*

Iron, Steel, Products..Blast furnaces, steel worksBolts, nuts, washers, rivetsCast-iron pipeCutlery, edge toolsForgingsHardwarePlumbers' suppliesStamped, enameled wareSteam, hot-water heatingStovesStructural, ornamentalTin cans, tinwareToolsWirework

Machinery .Agricultural implementsCash registers, etc.Electrical machineryEngines, turbines, etcFoundry, machine-shop products.Machine toolsRadios, phonographsTextile machinery...Typewriters. _

Transportation EquipmentAircraftAutomobilesCars, electric-, steam-railroadLocomotivesShipbuilding

Nonferrous Metals, ProductsAluminum *Brass, bronze, copperClocks, watches _.JewelryLighting equipmentSilverware, plated ware . . .Smelting, refining

Lumber, ProductsFurnitureLumber, mill work. _Lumber, sawmills

Stone, Clay, Glass ProductsBrick, tile, terra cotta...CementGlassMarble, granite, slatePottery

Textiles, ProductsFabrics

Carpets, rugsCotton goodsCotton small waresDyeing, finishing textiles..Hats, fur-felt..Hosiery _ .Knitted outerwearKnitted underwear _ .Knitted clothSilk, rayon goodsWoolen, worsted goods __

Wearing apparelClothing, men'sClothing, women'sCorsets, allied garmentsMen's furnishings __ _MillineryShirts, collars .

Factory employment

1940

Aug.

107.4102.4112.2

110.712211580

102739687

164909880

10896

146

119.213112910717610123815776

118

105.03,479

865133

181

113.81951389599886991

71 3916465

84 56475

1074991

99.790.4718977

12287

1367073

1486387

116.7107164109117

73117

Sept.

111.4108.21114

113.612311882

10777

10189

17794

10183

105100165

123.113413211118310324816078

123

127.03,764

1125436

188

119.82011471011031007392

73 4956766

85 86575

1094994

102.692.8769279

12586

1397374

1546489

120.710817111212387

122

1941

M a y

124.9131.3118.8

132.914116194

119102117102218112113102121

135213

162.5171151154272135327174101144

'172. 06,305

1348065

'311

139.923418411610411283

102

74 71007066

95 67378

124'47113

112.5105.1

8910610314181

1437782

15569

107124.2119165118122

76132

June

r127. 9135.1

'121.1

136.114416697

120'105118102220114116106132139216

167.7172163159286

'139339181104148

r178.16,734

135'8568

'339

141.922819011710711484

102

76 9104

7367

97.17579

12646

114

112.6106.2

9010910413983

1437979

16069

108121.912015911812263

132

July

'130. 5'137.7123.7

137.714716798

124'108'104102222119117107139140213

'172.8171168164298143346189106153

'179.57,280

127'8976

'375

143.523419011811211683

103

r79 5106

7670

99 67882

12845

117

113.2107.0

8910910513984

1438186

'15969

109122.3122160115126

58129

Aug.

132.8138.4127 5

139.914917196

127111113103225125117110145143194

175.5172170167314144352202108156

171.47,960

1098979388

145.723919311811811685

104

81 01087871

101 37983

13044

119

115.5106.991

11010713682

1428186

16168

109129.812317611912980

134

Sept.

135 6142.3129.2

140.814917198

13011311399

229128116108145144222

177.5171174169325145357213109158

192.88,565

1269580

444

146.023919510711912187

103

80 8108

7771

101 57984

13045

121

115.6106.4

91111106136

791368388

16163

110131.612417812413285

137

Factory payrolls

1940

Aug.

105.5106.51014

113.6125139769386

10782

183858973

12296

163

131.115213612424010130315074

125

115.63,727

964733

211

117.023316110183776189

£8 3825362

76.95473

1163781

87.480.9598073

10283

1446066

129517894.982

13010911465

102

Sept.

111.6115.1107. 7

118.012813979

10192

11483

201919775

117104189

138.015614013125110533216276

137

141.44,212

1255037

227

128.024817810991

" 907092

71 2875564

79.75477

1213887

92 684.8658577

10777

1476468

1385182

102.583

14212312094

108

1941

M a y

144.1163.1122.9

160.9173234110134

'153142105265129119114146172277

217.2229196215444166507192124190

'817.17,745

171'8580

'434

166.732224714398

11091

112

78 01036266

97.86985

15039

114

110. 3109.390

11711413477

1587285

14963

113105.9101132137130

51131

June

'252. 2'173. 9'127.9

168.6180248115139

'163150106279138125120163181285

'229. 9233216224485

'178529200131208

'240. 48,212

188'9391

'506

174.632126214810111794

117

84 01106771

100.27290

15435

118

111.4111.690

12011613386

1587583

'15464

117104.110711913913143

136

July

'152. 6172.3

'130. 7

'166. 3182224112135157

'124102272138122112171

'174272

'282.9228214232

'504'177535219133217

'229. 39,078

'15891

103'583

174.132026413810511887

117

r85 51106874

'98.9'7391

14735

115

113.6113.390

12312113491

1607591

'15464

117107. 3109128132

'13840

131

Aug.

157.8177.1136.2

172.1183241112148169154107289148128124185183252

241.3228223240541182553234136222

224.110, 462

13794

105614

182.034327414611312294

118

92 51167581

104.17794

15536

124

119.5114. 5

9412612413390

1557791

15764

119121.911415514014575

141

Sept.

163.0183.5140.0

171.0178226117150173155105294156128120188201296

246.2231230242565184585257141233

256.211, 268

163102109705

I84.O346272134120139105118

91 2118

7478

105.4.7793

16136

125

123.4117.897

13012513681

1518196

15661

129127.011516414915584

147

r Revised.* Indexes adjusted to Census of Manufactures through 1939. For back figures see BULLETIN for February 1941, p. 166.

NOVEMBER 1941 1177


Factory Employment and Payrolls—Continued[Index n u m b e r s of the B u r e a u of Labor Stat ist ics; adjusted to Census of Manufac tu res th rough 1937. 1923-25 average=100]

Industry and group

Leather, Manufactures..Boots, shoesLeather

Food, ProductsBakingBeveragesButterCanning, preservingConfectioneryFlourIce creamSlaughtering, meat packing.Sugar, beetSugar refining, cane

Tobacco Manufactures..Tobacco, snuffCigars, cigarettes.

Paper, Printing..Boxes, paperPaper, pulpBook, job printingNewspaper, periodical printing.

Chemicals, Petroleum, and CoalProductsPetroleum refiningOther than petroleum

ChemicalsCottonseed, oil, cake, meal..Druggists' preparationsExplosivesFertilizersPaints, varnishesRayon, allied productsSoap

Rubber ProductsRubber boots, shoesRubber tires, inner tubes .Rubber goods, other

Factory employment

1940

Aug.

92.091

145.71472991032648080911078996

64.455

115.2118117100114

119.4123118.614252

1140)81

12430884

85.95571

144

Sept.

90.890

147.147283100269968181

10810292

65.85667

116..120117100116

123. 0123123.114381

1180)96

126312

5673

152

1941

M a y

95.59390

149293110100817787

11747

103

5366

120. 8130123103118

'135.122

••138. 616772

1250)

12714132492

106.7583

182

June

9594

'135. 21523101141368078

'9312048

1 0 3

65.55267

121.6135125102117

rl36. 8125

139. 617266

1270)93

14532793

110.77886

190

July

101.0

44150324

1 1 2210838096

11952

65..5267

123.0139126105115

r138. 9127

1 4 1 .17663

129

0)91

146324'96

111.47987

189

Aug.

101.19895

158.2153328111304917896

1186495

65.852

128.1142128106115

141.8128145.218071

1340)90

14532997

111. 87987

193

Sept.

99.59697

165.31543141063521028185

1198299

63.55465

124.7145129104117

146.1128150.51821151440)

10914432798

112.18087

193

Factory payrolls

1940

Aug.

77.07577

139.014035889

248777678

1128883

6562

110.913112586

106

134.4137133.16949

127(071

132318102

87.5776

142

Sept.

74.67277

138.514133288

232988170

11311678

65.96766

113.4134124

138.1139137.817178

1330)8 5 '

136328107

95.76085

153

1941

M a y

134. 71483629791847575

13354

67.16767

124.915914696

114

'164.9146170. 7222661430)127170356126

128.788111207

June

97.292

107

rH4- 4154391105134867983

13857

1 0 2

70.16770

128.617015895

114

'172. 4157

177. 2233

62150

0)94

178362129

14L298

122225

July

99109

'152. 5153

••421104213858285

13957

69.86870

'128. 6174157

175.9157

181 .724060

1630)

'90173369

1 3 3r135. 6

94118214

Aug.

104.7101109

165.21554301053211018184

14368

100

70.06870

130.918216399

110

179.2159185.424765

165

0)91

171368130

138.9102117228

Sept.

102.096

114

172.915739999

3951159377

1479097

70.26970

188163

186. 4168192.02501171760)

111170369133

135.9105110231

' Revised. l Data not available.NOTE.— Figures for September 1941 are preliminary.

are for payroll period ending nearest middled month.Back data may be obtained from the Bureau of Labor Statistics. Underlying figures

HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING INDUSTRIES[Compiled by the Bureau of Labor Statistics]

Industry and group

Total

Durable goods__ __

Iron, Steel, Products _Machinerv _Transportation EquipmentNonferrous Metals, ProductsLumber, Products -Stone, Clay, Glass Products

Nondurable goods

Textiles, Products -_Fabrics .Wearing apparel

Leather , Manufac tu res 1Food, P roduc t s _ _ _ _ _ _ _ _ _ -Tobacco Manufac tu resPaper, PrintingChemicals, Petroleum, and Coal

ProductsPetroleum refining _Other than petroleum refining-

Rubber Products

Average hours worked per week

1940

July

37.3

37.9

37.240.536.238.637.035.5

36.7

33.834.831.935.939.936.838.4

38.535.339.735.7

Aug.

38.4

39.7

38.841.239.940.139.437.0

37.2

34.935.733.535.840.436.138.2

38.735.839.836.3

1941

Apr .

40.0

41.5

40.844.539.742.040.238.0

38.4

37.338.335.338.039.633.239.6

39.937.040.739.4

M a y

40.8

42.5

41.545.442.442.840.138.5

38.9

37.938.836.237.540.336.940.0

39.837.040.740.3

June

41.3

43.1

42.045.643.843.140.938.6

39. 4

38.139.136.038.741.037.640.1

40.538.241.241.4

July

40.3

41.5

39.944.641.242.039.937.4

39.0

37.438.535.438.741.137.339.6

40.037.440.839.2

Aug.

41.0

42.6

41.445.141.943.041.838.5

39.4

38.138.936.439.241.337.240.1

40.038.040.639.4

Average hourly earnings

1940

July

66.7

72.7

11.174.489.170.151.966.5

61.5

50.248.653.455.362.550.279.1

78.398.670.978.5

Aug.

66.8

73.1

77.774.589.770.352.666.8

61.3

51.248.655.855.461.549.278.9

77.897.770.777.9

cents per hour)

1941

Apr .

70.8

78.5

84.178.992.374.954.769.5

62.9

52 A50.955.357.965.550.680.5

77.399.570.780.4

M a y

72.6

80.6

85.881.894.577.055.671.0

64.I

53.052.055.059.067.050.981.1

80.6100.874.481.6

June

73.8

82.2

86.383.297.679.457.071.7

65.0

53.452.255.959.967.251.782.6

82.4102.076.183.6

July

74.4

82.6

86.283.698.880.357.772.0

65.7

55.053.458.260.966.152.382.5

83.8103.077.784.5

Aug.

74.5

83.0

87.184.499.080.858.872.1

65.8

55.453.359.661.565.852.082.4

83.7102.578.086.1

' Revised.1 Beginning with October 1940 figures are not comparable because of expansion in reporting sample.



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

JanuaryFebruary _MarchApril. . .M a yJune _-JulyAugustSeptember _OctoberNovemberDecember

Year

Total

1940

196.2200.6272.2300.5328 9324.7398.7414.9347.7383.1380 3456.2

4,004 0

1941

305.2270.4479.9406.7548.7539.1577.4760.2

Residentialbuilding

1940

77.474.9

121.7135.4145 9135.3140.4153.0152.4148.5152 8159.3

1, 596. 9

1941

111.3116.5147.9166.5201 3205.6205.0231.5

Nonresidential building

Factories

1940

12.915.421.823.523 215.249.539.638.047 179 077 3

442.4

1941

55.937.8

121.866.281 1

102.3109.8135.7

Commercial

1940

15.920.223.124.026 133.138.928.627.129.424 927 1

318.3

1941

26.920.933.136.250.835.737.269.8

Educational l

1940

6.18.19.3

17.415 314.316.514.49.8

18.68 58.9

147.2

1941

11.67.9

10.411.217.113.519.111.7

Other i

1940

17.726.919.624.025 629.434.136.626.441.235 969.3

386.7

1941

24.223.536.129.753.549.054.569.4

Public worksand publicutilities 1

1940

66.355.276.776.392.897.5

119.3142.894.098.279.1

114.3

1,112.4

1941

75.163.9

130.696.9

144.9133.0151.7242.0

i Not strictly comparable with data for earlier years due to changes in classification.

CONSTRUCTION CONTRACTS AWARDED, BY OWNERSHIP[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

JanuaryFebruaryMarchApril . .MayJuneJulyAugustSeptemberOctoberNovemberDecember...

Year

Total

1936

215140199235216233295275234226208200

2,675

1937

243188231270244318322281207202198209

2,913

1938

192119227222283251240313301358302389

3,197

1939

252220301330308288300312323262300354

3,551

1940

196201272301329325399415348383380456

4,004

1941

305270480407549539577760623

Public ownership i

1936

1497996

10594

1161531531161018982

1,334

1937

11269667493

137131104807893

115

1,152

1938

118519599

14410898

171160203179279

1,705

1939

14811112816013512813715814492

144225

1,708

1940

938295

103112147205195144175195258

1,802

1941

11196

226169255302346509400

Private ownership i

1936

6662

103130122116141122119125119117

1,341

1937

13011916519515118019117812712410694

1,761

1938

7568

132123139143142142141154123110

1,492

1939

104109173170174161163154179170156129

1,842

1940

104119177197217177194220204209186198

2,202

1941

194174254238294237231251223

i Back figures.—See BULLETIN for February 1938, p. 159. Data for years prior to 1932 not available.

CONSTRUCTION CONTRACTS AWARDED, BY DISTRICTS

(Figures for 37 States east of the Rocky Mountains, as reported by theF. W. Dodge Corporation. Value of contracts in thousands of dollars.]


BostonNew YorkPhiladelphia

ClevelandRichmondAtlanta

Chicagofit. Louis ...Minneapolis

Kansas CityDallas

Total (11 districts)

r Revised.

Sept.

31, 28457, 86237, 932

46, 86577, 738

115, 995

61,10799, 46210, 030

38, 75646, 261

623, 292

Aug.

r41, 779'76, 32126, 437

'52, 589••146, 093••102, 851

'"118,723'62, 78213, 597

25, 462r93, 599

760, 233

1940

Sept.

26, 70053,90023, 934

34, 64334,19231, 323

69,15625, 46712, 028

13, 74422, 564

347, 651

COMMERCIAL FAILURES, BY DISTRICTS[Figures reported by Dun & Bradstreet. Amounts in thousands of

dollars.]

Federal Reservedistrict

Boston _ «.New YorkPhiladelphiaClevelandRichmondAtlanta _ _ChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco

Total

Number

1941

Sept.

6524554412530902719351193

735

Aug.

6035768473242

13623154220

112

954

1940

Sept.

4432175363743

14536204923

147

976

Liabilitie

1941

Sept.

7223,406

383490367632931284

1,076277121704

9,393

Aug.

7863,2141,445

750377317

2,09018375

217210

1,470

11,134

3

1940

Sept.

6303,918

7011,049

348488

1,337665240255159

1,607

11, 397

New series. Includes cases of discontinuances where loss to creditorswas involved even though actual legal formalities were not invoked.Back figures, available for 1939 only, may be obtained from Dun andBradstreet, Inc.

NOVEMBER 1941 1179


MERCHANDISE EXPORTS AND IMPORTS


Month

JanuaryFebruary _. _March

AprilMay . . _June. . . .

JulyAugustSeptember.

OctoberNovember ._ _December

Year

Jan.-Aug

1937

223233257

269290265

268277297

333315323

3,349

2,082

Mercha

1938

289262275

274257233

228231246

278252269

3,094

2,049

ndise exports i

1939

213219268

231249236

230250289

332292368

3,177

1,896

1940

370347351

323324350

317351295

344328322

4,021

2,732

1941

325303357

387385330

359P455

P2, 900

Merchandise imports 2

1937

240278307

287285286

265246233

224223209

3,084

2,194

1938

171163173

160148146

141166168

178176171

1,960

1,267

1939

178158190

186202179

169176182

215235247

2,318

1,439

1940

242200217

212211211

232221195

207224253

2,625

1,747

1941

229234268

287297280

278P283

P2, 154

Excess of exports

1937

- 1 8- 4 5- 5 1

—185

- 2 1

33163

10892

115

265

-113

1938

11899

102

115109

87

876579

1007698

1,134

782

1939

356177

454757

6174

107

11757

121

859

457

1940

128147134

111112138

84130101

137104

69

1,396

985

1941

'96'6989

1008850

81

P746

p Preliminary. ' Revised.1 Including both domestic and foreign merchandise.1 General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses.Source.—Department of Commerce.Back figures.—See BULLETIN for February 1937, p. 152; July 1933, p. 431; and January 1931, p. 18.

FREIGHT-CAR LOADINGS, BY CLASSES

[Index numbers; 1935-39 average=100]

SEASONALLYADJUSTED

1940—AugSeptOctNovDec

1941—JanFebMarAprMayJune . . .July.—AugSept

UNADJUSTED

1940-AugSeptOctNovDec

1941—JanFebMar.....AprMayJune .-_JulyAugSept

Total

112112110116119

122124126112135139138139130

113125125122112

113115120108131136138140145

Coal

124114

91109107 •

109113128

45138156150158133

109120104121121

124129132

38117131127139140

Coke

162147149150153

145149168137182189200199176

136144149159167

174183175120167170172167172

Grain

96'107100

9896

102102113113124126112103111

117117107

9687

90859796

107123163125122

Live-stock

9698999896

889393939188838484

91129152124

92

8475748282697080

111

For-est

prod-ucts

115122128131133

138133127130130136149152138

120132135129119

124128127130135141149160149

Ore

139145181181164

180181192266266152156155149

244254238145

46

454550

203276265283271261

Mis-cel-

lane-ous

110112116120125

130131128130136139140141135

110124132125116

115118124131138141139141150

Mer-chan-diseI.C.I.

9595969799

99101100102102102100

9997

96100100

9895

9498

101103102101

9999

102

' Revised.NOTE.—For description and back data, see pp. 529-533 of the BULLETIN for

June 1941. Based on daily average loadings. Basic data compiled by Associa-tion of American Railroads. Total index compiled by combining indexes forclasses with weights derived from revenue data of the Interstate CommerceCommission.

REVENUES,

SEASONALLYADJUSTED*

1940—July....Aug....Sept....OctNovDec

1941—JanFeb. . . .Mar. . .Apr... .May__.June.. .July—.Aug

UNADJUSTED

1940—July—_AugSept—OctNov....Dec

1941—JanFeb._.Mar....Apr. ___May.. .June.. .July—Aug

c

r Revised.

EXPENSES, AND INCOME OF CLASS 1RAILROADS 1

[Millions of dollars]

Totalrailway>peratingrevenues

356365377363379401

389402417382439474471485

366'382383414375382

377358416375442455485494

Totalrailway. /A ̂ _/v> A-I.O \>O

302'305309311312316

316319334323346363370374

308315308327304303

315300336322354362379382

p Preliminary.* Derived from Interstate

Netrailway

operatingincome

54'6067526785

7384835993

110100111

58'6774877179

625881538993

106111

Commerce Commission1 Excludes switching and terminalNOTE.—Descriptive material and

tained from the Division of

companies.back figures m

Research and Statistics.

Netincome

131625

82543

324341

'18506858

'172231433151

201535

7435364

P 6 7

data.

ly be ob-



DEPARTMENT STORE STATISTICSMONTHLY INDEXES OF SALES AND STOCKS

Index numbers based on value figures; 1923-25 average=100SALES BY DEPARTMENTS

Percentage change from corresponding period of preceding year

JanFeb...Mar...Apr...May..June..July..Aug...Sept..Oct...Nov...Dec...

Year..

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

Year..

Seasonally adjusted

1938

908886838082838385868788

717070696968676767676766

1939

888888888786878890929395

676868676667676768697168

1940

92908989899192989794100101

687170696867686970717271

1941

101103103104105104115134116

717374747477828792

Unadjusted

1938

7070778680795865919299156

85

636771717165616570747862

1939

69698288878360699799106168

90

606569696864606571778264

1940

7171868689876477105101114179

94

616871717064616673798366

1941

79819310610510079106125

647075767673738495

Back figures.—Department store sales, see BULLETIN for August 1936,p. 631, for October 1938, p. 918, and for January 1941, p. 65; departmentstore stocks, see BULLETIN for March 1938, p. 232.

WEEKLY INDEX OF SALESWeeks ending on dates shown. 1935-39 average=100

1938 1939 1940 1941

Department

NET SALES—entire storeMain StoreBasement Store

Women's, girls', and infants' apparel and ac-cessories

Main store i_Women's and misses' coats and suitsWomen's and misses' dressesBlouses, skirts, sportswear, sweaters,

knit apparelJuniors' and girls' wearAprons, housedresses, uniformsWomen's underwear, slips, negligees..Infants' wearWomen's and children's shoesFurs _

Basement2

Men's and boys' wearMain store 1

Men's clothingMen's furnishings, hats, capsBoys' clothing and furnishings

Basement2

HomefurnishingsMain store l

Furniture, beds, mattresses, s p r i n g s -Domestic floor coveringsDraperies, curtains, upholsteryMajor appliances (refrigerators, wash-

ers, stoves, etc.)Domestics, blankets, comforters, lin-

ens, towelsBasement (including domestics, blankets,

linens, towels)!Piece goods (dress and coat yard goods, all

materials)Main storeBasement

Shoes (basement only)

+56+14

+21+19+20+24+18+14

+107

September1941

++25+18+32+23

+18+19+14

+18+16+17

+25+27+24

+51

+26

+n+28+28

+H

+18+18+17+10

Ninemonths

1941

+27+11

+19+19+14+15+16+12+45

+17*+18+14

+16+16

+16+11+14

+U+13+H

+25+26+15

+40

+24

+10+24

+n

+20

+ 7+ 7+ 9+ 8

Sept. 3____10510__._ 9417 11124 104

Oct.8 112

15 10322____105

Sept. 2 1089 98

23™ .10730 120

Oct. 7 12314 11221 116

Aug. 31 118Sept. 7..--109

14 12321 11728 120

Oct. 5 12512 ...11519 123

Aug. 30 152Sept. 6 122

13 13320 13127 1484 169

11 13018 131

Oct.

* Based on reports from 244 stores. Reports of total sales from a largernumber of stores, including many stores not reporting sales by depart-ments, showed an increase of 24 per cent for September and 19 percent for the first nine months of 1941, as indicated in the table below.

1 Group totals for main store include sales in departments not shownseparately.

2 Group totals for basement are not strictly comparable with thoseshown for main store owing chiefly to inclusion in basement of fewerdepartments and somewhat different types of merchandise.

SALES BY FEDERAL RESERVE DISTRICTS AND BY CITIESPercentage change from corresponding period of preceding year

United States.—Boston

New HavenPortlandBostonSpringfieldProvidence

New YorkBridgeportNewarkAlbanyBinghamton. . .BuffaloElmiraNiagara Fal ls . _New York CityPoughkeepsie..RochesterSyracuse

PhiladelphiaTrentonLancasterPhiladelphia.Reading.Wilkes-Barre.York

ClevelandAkronCincinnati. __

Sept.1941

+24+26+21+32+27+25+30

+20+42+20+17+31+11+30+31+21+18+21+24

+21+20+37+22+21+24+21

+27+41+20

Aug.1941

+32+31+32+29+28+37+30

r+29+43+29+29+43+45+60+37r+25+23+30+41

+32+31+28+32+31+39+4

+41+59+36

Ninemos.1941

+19+19+17+19+15+21+20

+16+29+15+16+24+24+34+15+14+15+16+23

+18+18+16+19+21+16+17

+23+33+18

Cleveland (cont'd)ClevelandColumbusToledoYoungstown. . .EriePittsburghWheeling

RichmondWashingtonBaltimoreWinston-SalemCharleston, S.C.LynchburgNorfolkRichmondCharlestonHuntington

AtlantaBirmingham. . .Montgomery.. .JacksonvilleTampaAtlantaMaconBaton Rouge. . .New Orleans. . .JacksonChattanooga. . .KnoxvilleNashville

Sept.1941

Aug.1941

+33+26+16+35+34+23+29

+19+17+20+20+34+19+31+20+10+27

+21+28+18+24+6

+22+36+22+29+26+20+21+16

+43+32+32+36+50+37+53

+34+32+36+21+67+25+46+20+4'+48

+34+37+30+41+45+30+48+33+33+38+41+38+34

Ninemos.1941

+25+18+18+28+27+18+25

+22+22+22+15+37+16+44+17+24+22

+23+15+31+23+19+25+17+19+21+22+21+21

Sept.1941

ChicagoChicagoPeoriaFort WayneIndianapolis . . .Des MoinesSioux CityDetroitFlintGrand Rapids._LansingMilwaukee

St. LouisFort SmithLittle RockQuincyEvansvilleLouisvilleSt. LouisSpringfieldMemphis

MinneapolisKansas City

DenverHutchinsonTopekaWichitaJoplinKansas C i t y . . .St. JosephOmahaOklahoma CityTulsa

Aug.1941

+25+22+22+32+22+22+37+29+10+25+27+28+21+16+28+29+13+33+24+32+24+22+26+30+33+16+3'+29+28+14+30+23+21

+18+31+43+36+19+16+42+30+31+45+31+36+30+50+24+29+57+30+51+36

+26+32+29+20+42+36+21+14+27+22+24

Ninemos.1941

+18+11+15+28+20+12+14+25+26+17+30+21+21+16+27+15+15+37+17+41+21+12+17+18+19+13+23+22+17+11+14+18+15

Sept.1941

DallasShreveportDallasFort W o r t h . . . .HoustonSan Antonio._.

San FranciscoPhoenixBakersfieldFresnoLong BeachLos AngelesOakland and

BerkeleySacramentoSan DiegoSan Francisco..San JoseSanta RosaStocktonVallejoandNapaBoise and

NampaPortlandSalt Lake City.BellinghamEverettSeattleSpokaneTacomaWalla Walla „ .Yakima

Aug.

+22+28+27+30+9

+29

+29+45+13+22+34+24

+30+25+33+28+18+21+22+39

+27+31+29+42+28+48+33+40+16+25

+35+39+38+31+34+38

+34+61+27+32+57+31

+31+28+40+22+20+30+27

+31+42+33+37+49+45+34+54+24+37

Ninemos.1941

+19+18+19+20+16+27

+20+30+6

+11+29+18

+13+13+37+16+6

+11+8

+43

+11+20+19+15+27+31+19+40+5+8

r Revised.NOVEMBER 1941 1181


WHOLESALE PRICES, BY GROUPS OF COMMODITIES

Year, month, or week

192919301931 _ __19321933193419351936193719381939....1940

1940—July-August _SeptemberOctoberNovemberDecember

1941—JanuaryFebruaryMarchAprilMay. ._._JuneJulyAugustSeptember

Week ending—1941-July 5

July 12July 19July 26August 2August 9August 16August 23Aueust 30 . .SeDtember 6September 13 ___September 20September 27October 4October 11October 18October 25

Allcom-modi-ties

95.386.473.064.865.974.980.080.886.378.677.178.6

77.777.478.078.779.680.0

80.880.681.583.284.987.188.890.391.8

87.788.188.388.889.289.689.690.090.691.091.691.591.291.691.691.791.2

[Index numbers of the Bureau of Labor Statistics.

Farmprod-ucts

104.988.364.848.251.465.378.880.986.468.565.367.7

66.565.666.266.468.269.7

71.670.371.674.476.482.185.887.491.0

84.185.085.486.787.287.886.486.788.689.191.691.289.990.390.589.888.1

Subgroups

Farm Products:GrainsLivestock and DoultrvOther farm nroduots

Foods'Dairy productsCereal productsFruits and vegetablesMeatsOther foods

Hides and Leather Products:ShoesTTides arid skinsLeatherOther leather products

Textile Products:ClothingCotton goodsBfosierv and underwearSilkRayonWoolen and worsted goods...Other textile products

Fuel and Lighting Materials:AnthraciteBituminous coalCokeElectricityGasPetroleum products.

Foods

1940

Sept.

61.772.463.2

75.176.060.879.062.6

107.084.088.999.7

85.669.261 442.829.584.271.6

79.696.8

109 673.584 848.9

f)9.930.574.6f>l,0f>0.570.5*3.7S2.1W. 573.670.471.3

70.370.171,571.172.573.5

73.773.575 277.979.583. 184.787.289.5

84.184.183.884 685. 586.286.787.088.288,689.188 587.689.789.288.487.5

1926=100]

Other commodities

Total

91.685.275.070.271.278.477.979.685.381.781.383.0

82.382.082.383.584.184.1

84.384.484.985.987.488.689.790.891.6

89.289.589.790.090.290.690.790.991.191.491.691.892.092.192.393.193.0

Hides andleather

products

109.1100.086.172.980.986.689.695.4

104.692.895.6

100.8

99.096.998.3

100.4102.3102.3

102.4101.6102.6103.9106.4107.8109.4110.2111.3

108.8109.3109.6109.7109.7109.9110.2110.8110.9111.2111.4111.7112.3112.4112.6113.2113.2

1941

June

75.993 076.6

84.379.873.090 K79.5

111.7112.497 9

102.1

91.694.661 951.229.594.694.1

81 0103.7122.267.281 059.9

July

76.398.979.9

87.780.369.493.881.6

114.7112.598.1

102.7

93.996.162 951.429.596.598.0

82.2104.9122 2

80 860.9

Aug.

79.699.082.0

90.381.570.397.584.4

116.1112.298.5

103.7

95.1101.563 852.029.598.296.8

83.3106.3122 2

78 361.4

Sept.

85 3101.186.0

93.385 870.799 486.5

117,1112.1100 0106 3

96.1104.264.4

29.8101.495.1

84 5107.2122.2

61.7

Textileproducts

90.480.366.354.964.872.970.971.576.366.769.773.8

72.472.372.573.674.574.8

75.276.478.481.083.084.586.288.389.7

84.184.385.086.486.687.187.487.387.688.388.789.289.689.990.190.290.3

Fuel andlightingmaterials

83.078.567.570.366.373.373.576.277.676.573.171.7

71.171.171.071.671.971.7

72.172.172.072.975.677.978.579.079.3

79.079.179.379.479.479.679.579.879.879.980.080.080.180.179.980.079.9

Metalsand metalproducts

100.592.184.580.279.886.986.487.095.795.794.495.8

95.194.995.497.397.697.6

97.797.697.797.998.198.398.598.698.6

98.498.698.698.698.698.698.798.698.798.798.798.798.798.798.6

102.2102.2

Buildingmaterials

95.489.979.271.477.086.285.386.795.290.390.594.8

92.593.395.697.898.999.3

99.699.399.5

100.1100.4101.0103.1105. 5106.4

101.7102.4102.6102.7103.3104.2104.8105.2105.7106.0105.9106.2

»106. 6106.6107.1106.9107.0

Subgroups

Metals and Metal Products:Agricultural implementsFarm machineryIron and steelMotor vehicles _ ,_ _ _Nonferrous metalsPlumbing and heating _

Building Materials:Brick and tile.CementLuPa

mber* _ _ . _int and paint materials

Plumbing and heatingStructural steelOther building materials

Chemicals and Allied Products:Chemicals _Drugs and PharmaceuticalsFertilizer materialsMixed fertilizersOils and fats

Housefurnishing Goods:Furnishings..Furniture

Miscellaneous:Auto tires and tubes _.Cattle feed

Rubber, crudeOther miscel aneous

Chemi-cals and

alliedproducts

94.088.779.373.972.175.379.078.782.677.076.077.0

77.076.776.876.977.577.7

78.678.579.881.883.683.885.286.087.4

84.685.185.085.085.585.785.985.985.886.087.387.888.189.789.889.789.6

1940

Sept.

92.493.794.996.180.780.5

90.290.607.184.180.507.393.5

84.896.068.174.239.9

94.881.8

58.875.993.239.882.6

House-furnish-ing goods

94.392.784.975.175.881.580.681.789.786.886.388.5

88.588.588.588.688.688.9

89.089.189.590.491.493.194.495.497.2

94.395.395.495.595.895.996.496.896.997.197.998.098.398.599.799.999.9

Miscel-laneous

82.677.769.864.462.569.768.370.577.873.374.877.3

77.776.776.576.977.577.3

77.176. &77.678.679.680.682.083.785.1

81.281.381.781.882.383.083.183 684.184.584.985.085.185.085.985.585.5

1941

June

92.493.596.5

100.384.583.1

92.591.9

117. 690.383.1

107.396.9

87.299.969.973.880.6

99.087.0

58.888.998.045.687.4

July

92.593.596.8

100.4 184.783.2

94.292.1

122.3 191.683.2

107.3 198.4

87.3100.0 174.077.083.7

99.7 :88.9

58.8104.2 ]98.8 ]46.088.9

Aaig.

92.993,996 900.484.486.8

95.192 127.593.386 807,399.9

87.500.175.377.187 3

00 789.9

60,808.800 747.889.8

Sept.

93.494.496.9

100.484.487.1

95.792.2

129.194.787.1

107.3100.2

88.2104.4

76.6-77.191.3

102.192.2

60.8126.2101.747.191.0

r Revised.1 Revised series.Back figures.—FOT monthly and annual indexes of groups, see Annual Report for 1937 (table 86); for indexes of subgroups, see Annual Report

for 1937 (table 87).



CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK*ON BANK CREDIT, MONEY RATES, AND BUSINESS

Chartbook

1941

Sept.24

Oct.1

Oct. Oct.15

Oct.22

Chartbookpage

1941

July Aug. Sept.

WEEKLY FIGURES iRESERVES AND CURRENCY

Reserve Bank credit, total. 3U. S. Gov't securities,

by maturities, total._ 5Within 1 yr 5Within 5 yrs 5After 5 yrs 5

Gold stock 3Treasury currency 3Money in circulation 3, 11Treasury cash holdings 3Treasury deposits 3Nonmember deposits 3Member bank reserves 3Excess reserves—total • 9

New York City 9Chicago 9Reserve city banks 9Country banks • 9

MEMBER BANKS

Total, 101 cities:Loans and investments 16Balances due to

domestic banks 16Demand deposits ad-

justed.. 16Time deposits. 16

New York City:Commercial loans 17Brokers' loans 17U. S. Gov't obligations 17

100 cities outside New York:Commercial loans 17U. S. Gov't obligations 17

MONEY RATES, ETC.

Treasury bills (new issues) 21Treasury notes 2 _ 21U. S. Gov't bonds 3 21, 29Corporate Aaa bonds 29Corporate Baa bonds 29

Stock prices(1935-1939=100):

Total 31Industrial 31Railroad . 31Public utility 31

Volume of trading (mill,shares) 31BUSINESS CONDITIONS

Wholesale prices:All commodities (1926= 100):

Total 35Farm products 35Other 4 35

Basic commodities(Aug. 1939=100), total 36

12 foodstuffs 3616 industrial

materials 36Steel production

(per cent of capacity) ___ 44Automobile production

(thous. cars) 44Freight-car loadings (thous. cars):

Total 45Miscellaneous 45

Electric power production(mill. kw. hrs.) 46

Department store sales(1935-1939=100) 46

F.H.A. home mortgages,new constr. (thous.) 47

In billions of dollars

2.28

2.18.19.951.2322.753.1910.072.35.381.86

13.275.201.86.521.85.97

29.12

9.55

24.395.43

2.45.347.04

3.947.36

2.24

2.18.19.951.2322.763.2010.182.26.311.92

13.24P5. 191.77.571. 85P. 99

29.13

9.67

24.285.43

2.48.357.00

3.977.30

2.27

2.18.19.951.23

22.773.2010.242.24.301.88

13.29P5. 221.72.571.88

Pl.04

29.13

9.61

24. 405.44

2.52.366.97

3.997.34

2.31

2.18.19.951.23

22.783.2110.282.22.261.92

13.32P5.231.71.521.91

PI.08

29.39

9.89

24.645.44

2.55.406.99

4.027.39

Per cent per annum

.0620.381.942.754.33

.0020.381.922.744.31

.0010.391.902.734.27

.0240.411.902.734.28

In unit indicated

83.484.871.480.7

.62

91.289.992.0

155.6170.4

145.2

96.8

'77.0

919.5399.7

3,233

148

4.86

82.784.071.480.1

.43

91.690.392.1

155. 9171.1

145.2

96.9

76.8

917.5396.9

3,290

169

4.20

81.482.571.279.5

.55

91.690.592.3

154.2165.6

146.0

98.1

79.1

903.9392.6

3, 315

130

4.47

79.680.670.178.4

.62

91.789.893.1

149.6156.7

144.3

98.4

85.6

922.9407.5

3,273

131

3.78

2.29

2.18.15.91

1.2822.793.21

10.282.20.98

1.8012.75H.%71.62.46

1.80P. 99

29.62

9.46

24.385.44

2. 54.38

7.05

4.017.61

.0670.411.872.734.28

79.580.669.577.6

.59

91.288.193.0

152.2162.5

144.8

97.8

91.9

913.6405.6

130

4.16

MONTHLY FIGURESRESERVES AND CURRENCY

Reserve Bank credit, t o t a l . . . 2, 7U. S. Gov't securities 7Bills discounted 7

Gold stock 2Money in circulation 2Treasury cash 2Treasury deposits 2Reserve balances 2, 8Required reserves 8Excess reserves 8Money in circulation, tota l . . . 10

Coins and bills under $50.. 10Bills of $50 and over 10

TREASURY FINANCE

U. S. Government debt:Direct obligations, total __ 19

Bonds 19Notes 19Bills 19Special issues 19

Guaranteed obligations.„ 19

MONEY RATES, ETC.

F. R. Bank discountrate, N. Y 23

Treasury bills (new issues) _ _ 23Treasury notes 2 23U. S. Gov't bonds 3 29Commercial paper _ 25Corporate Aaa bonds 25, 29Corporate Baa bonds 29

Stock prices(1935-1939=100):

Total** 31Industrial 31Railroad 31Public utility 31

Volume of trading (mill.shares) 31

Brokers' balances (mill, dol-lars) :

Credit extended customers 33Money borrowed 33Customers' free credit

balances 33BUSINESS CONDITIONS

Wholesale prices:All commodities (1926=100):

Totals 35,65Farm products 35Other 4. 35

Industrial commodities(Aug. 1939=100):

Total 37Finished 37Raw and semifinished 37

Cost of living (1935-39=100):All items 39Rent.. . 39Clothing... 39Food 39


2.302.18(5)22.659.672.30.95

13.127.935.199.736.992.74

48.9735.345.701.606.326.93

2.282.18.01

22.709.842.36.83

13.007.995.0210.007.242. 76

50.3735.566.741.606.476.93

2.302.18.01

22.7410.062.38.48

13.188.075.12

10.167.382.79

50.7935.797.041.306.666.93

Per cent per annum

1.000.0970.371.90.50

2.744.28

1.0.0.1.

0

4.

001083394507427

1.000.0550.341.94.50

2.754.30

In unit indicated

83.284.273.881.8

.76

628388

266

88.885.889.7

113.0109.1120.8

105.3106.1104.8106.7

83.284.374.481.0

.47

628460

262

90.387.490.8

114.4110.2122.9

••106. 2106. 3'106. 9108.0

83.684.872.681.3

.60

633396

260

91.891.091.6

115.6110.9125.0

108.1106. 8110. 8110.8

e Estimated, P Preliminary. r Revised.1 Figures for other than Wednesday dates are shown under the

Wednesday included in the weekly period.2 Tax-exempt issues only.3 Partially tax-exempt issues only.* Other than farm products and foods,s Less than $5,000,000.e Estimate for October is shown on page 1170.* Current figures are for the revised edition of the Chart Book an-

nounced on p. 864 of the September BULLETIN. Copies of thisChart Book can be obtained at a price of 50 cents each.** Incorrect figures were plotted for the following months: May

1939, 88.4; July 1940, 80.8.

NOVEMBER 1941 1183


CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK*—Continued

Chartbook

1941

July Aug. Sept.

Chartbookpage July Aug. Sept.

M O N T H L Y FIGURES (cont.)BUSINESS CONDITIONS (cont.)

Industrial production : i 3

Total (1935-39=100) 41, 42Durable manufactures 41

Iron and steel 42Machinery, etc. 42Other durable 42

Nondurable manufactures 41Textiles and leather 42Paper and printing 42Foods, liquors, and tobacco.. 42Other nondurable _._ 42

Minerals 41, 42New orders, shipments, and

inventories (Jan. 1939=100):New orders, total _ 43

Durable 43Nondurable __ 43

Shipments, total 43Durable 43Nondurable 43

Inventories, total __ 43Durable '_ 43Nondurable 43

Freight-car loadings ;i 2Total (1935-39 = 100)3 57Coal 57Miscellaneous 57All other 57

Factory employment 51, 53Factory payrolls 51, 53Average hourly earnings

(cents per hour) r 51Average hours worked

(hours per week) 51Department store sales 3 59Department store stocks 1 59

Residential contracts awarded;iTotal 47Public 47Private, total " " _ _ " ! 47

1- and 2-family dwellings 47Other '_"_[ 47

Construction contracts awarded:4

Total 49Residential 49Other 49

Nonagricultural employment *(mill, persons):

Total 50Manufacturing and mining. 50Trade .'/-'."'. 50Government _ . 5 0Transportation and utilities"" " " 50Construction 50

Income payments: 1Total 54Salaries and wages 54Other "__._"_ 54

Cash farm income:Total 55Crops 55Livestock and products 55Gov't payments 55

Exports and imports:Exports 61Imports . 61Excess of exports 61

In unit indicated

16075.620.439.216.0'64.720.412.817.614.019.9

212295159185222151131141121

13831.976.829.1

16075.320.338.916.065.020.012.918.313.719.9

196257157188216164134146122

13933.577.228.7

P162P77. 4P21. 1P40. 3P16.0P64. 9P19.8P12.7P18.6P13.7P19.7

P198P254P163P203P231P178P137P150P124

13028.474.227.9

1923-25=100

130.152.

74.

40.11582

56

4

3

132.157.

74.

41.13487

88

5

0

135.6163.0

11692

In millions of dollars

1915313912415

570212358

39.2713.136.614.123.261.67

7,4795,1192,360

90434054915

35927881

2248214212617

622206416

39.4313.116.694.183.301.67

7, 5645,1692,395

1,12157153020

P455P2S3P173

17560

11610313

P653P186

P39.35P13. 05P6. 62P4. 20P3.30PI.70

P7, 681P5, 197P2, 484

P1,325701

MONTHLY FIGURES (cont.)INTERNATIONAL FINANCE

Wholesale prices:Canada 65Germany 65Japan 65Sweden 65Switzerland 65United Kingdom 65

Foreign exchange rates:Argentina (peso) 67Canada (dollar) 67Japan (yen) • 66Switzerland (franc)7 66United Kingdom (pound). _ 67

Increase in U. S. gold stocksTotal 63Net capital inflow:

Total 62, 63Inflow of foreign capital 62Return of domestic capital . . 62

Merchandise export surplus 63Other factors _*__. 63

Short-term foreign liabilities andassets of banks:

Due to foreigners 64Due from foreigners 64Net due to foreigners 64

QUARTERLY FIGURES

Cash income and outgo of U.S.Treas.:Cash income 18Cash outgo 18Excess of cash outgo 18

Domestic corporation security issues:Total 32New_____ 32Refunding 32

Bank rates on customers' loans:Total, 19 cities 25New York City 277 other Northern and Eastern

cities 2711 Southern and Western cities __ 27

1926=100

91.1P83.6139.0137.4130.2123.6

91.

139.

P131.123.

8

4

56

139.

124.

4

5

In cents per unit offoreign currency

29. 7788.2723. 44

29.77

403. 23 403.18 403. 27

29.7789.13

1941

M a y June July


15.55

6.053.971.984.814.70

3.89.36

3.53

15.

5.3.

60

9989

2.004.4.

3.

3.

8676

823448

15.65

5.923.831.994.944.80

3.77.36

3.41

1941

Jan.-Mar.

Apr.-June

July-Sept.


2 843.891.05

.78

.17

.61

2.624.461.84

.61

.19

.42

2.555.312.76

.73

.41

.32

Per cent per annum

2.582.06

2.533.25

2.1.

2.3.

5595

5823

2.601.98

2.623.29

p Preliminary. r Revised.1 Adjusted for seasonal variation.2 In points in total index.3 Estimate for October is shown on p. 1170.4 Three-month moving average, adjusted for seasonal variation.« Cumulated from Jan. 31, 1934.• No rate certified since July 25, 1941.^ No rate certified since June 14, 1941.* Current figures are for the revised edition of the Chart Book an-

nounced on p. 864 of the September BULLETIN. Copies of this ChartBook can be obtained at a price of 50 cents each.



CURRENT STATISTICS FOR

CALL REPORT FIGURESALL BANKS IN THE U. S.

Total deposits and currencyDemand deposits adjustedTime depositsCurrency outside banksLoans and investments, total

LoansInvestments

MEMBER BANKS

Investments, total1

U. S. Government obligations:DirectGuaranteed

State and local government obligationsOther domestic securitiesForeign securities

Loans, total * _. . _Commercial loans (incl. open-market paper)Street loans (Brokers' loans)Other security loans4

Real estate loansAll other loans ' 5

SEMI-ANNUAL FIGURESOWNERSHIP OF U. S. GOVERNMENT OBLIGATIONS

Total direct and guaranteed obligations outstanding 1Amount held by: _ __„

U.S. Government agencies and trust funds:Public issuesSpecial issues

Federal Reserve BanksCommercial banksVTutual savings banks[nsurance companiesOther investors

Chartbookpage

12121212131313

1414141414

15151515

20202020202020

FEDERAL RESERVE CHART BOOK*—Continued[In billions of dollars]

1938

Dec.31

59.1226.0126 38

5.8348.8721.3027.57

18.86

10.882.342.453 01

.1813.21

3 5.893 .793 .96

2.722 85

43.89

2.203.162 56

15.072.88

6 5.60H2. 40

1939

Mar.29

59.1126.0426.56

5.6348.9321.1527.78

19.05

10.692.662.562.96

.1813.055.96

.67

.902.752.77

June30

60.9527.3526.806.01

49.6221.3228.30

19.46

10.952.832.552.94

.1913.145.99

.56

.912.832.85

45.34

2.143.772.55

15 703.045.80

12.30

Oct.2

62.8729.0926.816.19

49 9521.6328.32

19.61

10.892.922.76

(2)

13.47

(2)(3)

Dec.30

64.1029.7927.066.40

50 8822.1728.71

19.98

11.183.142.692.77

.1913.966.57

61.88

2.962 94

47.07

2.324 232.48

16 303 10

6 6.00612. 60

1940

Mar.26

64.8830.5427.28

6.2351.1422.1928.95

20.22

11.313. 112.91

(2)

to13.94

(2)(2)

June29

66.9631.9627.476.70

51.3422.3429.00

20.48

11.603.122.892.70

.1713.976.72.32.80

3.073.06

47.87

2.294.772.47

16.553 116.10

12.60

Dec.31

70.7534.9427.747.32

54.1923.7430.45

21.81

12.343.493.012.80

.1715.327.52.47.83

3.233.27

50.36

2.255.372.18

17.763 22

6 6. 50613.10

1941

Apr.4

72.4336.1027.907.78

56.1524.3231.83

23 10

13.503.493.21(2)

15.88

(2)(2)

June30

74.1537.3227.888.20

57.9425.3132.63

23.93

14.243.842.982.72

.1516.738.55

.42

.793.373.61

54.75

2.366.122.18

r20 103 43

6 6.60614 00

Sept.24

P24. 42

P3. 16

(2)P]7. 54

(*)(2)(2)(2)

p Preliminary. r Revised. l Series not shown in Chart Book. 2 Figures available for June and December dates only.3 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 332.4 Includes since December 31,1938, only loans made for the purpose of purchasing or carrying securities; loans on securities made for other pur-

poses are included in commercial loans and in all other loans.5 Includes loans to banks and other loans under new classification beginning December 31, 1938. « Partly estimated.* Current figures are for the revised edition of the Chart Book announced on p. 864 of the September BULLETIN. Copies of this chart book can

be obtained at a price of 50 cents each.OCTOBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS

[Based on estimates of the Department of Agriculture, by States, as of October 1, 1941][In thousands of units]


BostonNew YorkPhiladelphia _ _ __ClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas City__ . _ _ _ ..___.Dallas.San Francisco _ __

Total


BostonNew YorkPhiladelphia - ._ClevelandRichmondAtlanta ___ _.ChicagoSt. Louis .MinneapolisKansas CityDallasSan Francisco

Total

Cotton

Produc-tion1940

Bales

1,7302,304

i 3, 277

6663,869

720

12, 566

O

Produc-tion1940

Bushels

7,04731, 26419, 49957, 47221, 06415, 205

525, 65860,057

302, 514127, 62740, 50727, 714

1, 235, 628

EstimateOct. 1,1941

Bales

9531,991

2 3, 554

5893,315

659

11,061

its

EstimateOct. 1,

1941

Bushels

6,86326, 97919,64761, 77423,15219,584

465, 43660, 600

251,869132, 99939,31430, 626

1,138, 843

Corn

Produc-tion1940

Bushels7,366

25, 39347, 863

160, 404135, 014178, 019965, 662326,128265, 502225, 245105, 113

7,491

2, 449, 200

EstimateOct. 1,1941

Bushels7,758

29, 01750, 490

199,112131, 752182, 430

1, 021, 503341, 318286, 786281, 758

85, 2928,286

2, 625, 502

Tame hay

Produc-tion1940

Tons3,4855,8582,3595,9784,0993,259

21, 2918,210

10, 5507,3021, 781

12,140

86, 312

EstimateOct. 1,1941

Tons3,1524,4322,0805,2073,8653,391

19,7438,234

12, 0628,8561,771

12. 940

85, 733

Winter wheat

Produc-tion1940

Bushels

8,78616, 90147,35126, 6636,508

63, 29862, 53124,756

232, 60629, 95769,794

589,151

EstimateOct. 1,

1941

Bushels

7,32716, 58055,29827, 2516,955

61, 07252,97836, 576

281, 79336,105

103,031

684, 966

Tobacco

Produc-tion1940

Pounds32, 9231,983

49,590123,150743, 939178, 516

36, 785277, 570

3,0344,476

1, 451, 966

EstimateOct. 1,1941

Pounds35,0212,353

52, 245106, 042645, 658139,57131,897

234, 6302,6894,290

1, 254, 396

Spring wheat

Produc-tion1940

Bushels8892

15877

1,92177

187, 5166,522

10530,991

227, 547

EstimateOct. 1,

1941

Bushels6890

15059

1,77638

241,1017,403

14825, 395

276,228

White potatoes

Produc-tion1940

Bushels54, 60032,15324, 84320,13228,48915, 33741,61813,81752, 33035, 3343,949

75,120

397, 722

EstimateOct. 1,

1941

Bushels55,11432,04123,85619, 87421,95215,00542, 04213,01743,96631,0226,877

69, 767

374, 533

1 Includes 18,000 bales grown in miscellaneous territory.2 Includes 19,000 bales grown in miscellaneous territory.

N O V E M B E R 1941 1185


MEMBER BANK EARNINGSNATIONAL AND STATE MEMBER BANKS, BY HALF-YEAR PERIODS, JULY 1, 1940—JUNE 30, 1941

[Figures for national banks were compiled by the Comptroller of the Currency from reports submitted by national banks. Amountsin thousands of dollars.]

Item

Earnings—totalInterest and discount on loansInterest and dividends on securitiesCollection charges, commissions, fees, etc.-Foreign departmentTrust departmentService charges on deposit accountsRent receivedOther current earnings

Expenses—totalSalaries—officersSalaries and wages—others

rectors' and committee members' fees,.terest on time depositsterest on borrowed moneyeal estate taxesther taxesher current expenses

current earnings..

ecoveries, profits on securities, etc.—total-Recoveries on loansRecoveries on securitiesProfits on securities soldAllother

Losses and depreciation—totalOn loansOn securitiesOn banking house and equipment.Allother

Net profits

Cash dividends declared-On preferred stock i__On common stock

Loans 2

Securities 2

Real estate assets 2_.Cash assets2

Total assets 2-.

totaL

Time deposits 2

Total deposits 2

Total capital accounts 2

Number of officers at end of period

Number of employees at end of period-

Number of banks at end of periodRatios to total capital accounts:4

Net current earningsNet profitsCash dividends declared-__

Ratios to loans:4

Interest and discount on loans_.Recoveries on loansLosses on loans

Ratios to securities:4

Interest and dividends on securitiesRecoveries on securitiesProfits on securities soldLosses on securities

Other ratios:Interest on time deposits to time deposits 4

Time deposits to total depositsTotal capital accounts to loans, securities, and real estate assets.Loans to total assetsSecurities to total assets

All member banks National member banks

Secondalf of 1940

673,538305, 350216, 59516,9665,644

48, 70330, 09540, 7669,419

465, 83679, 259125, 4713,985

72, 73869

17, 64034, 033132, 641

207,702

159,59929,09336,42881, 42612, 652

180, 36443, 38084,15327, 41225, 419

186, 937

110, 4466,566

103, 880

14, 644, 68421,143,8521, 271, 032

22,896, 425

60,252,011

12,194, 45954, 079, 3645, 652, 634

35,369163, 783

6,486

7.36.63.9

4.2.4.6

2.0

!8.8

1.222.515.324.335.1

Firsthalf of 1941

680, 733318,468215,02417,8854,636

43, 82931, 70440, 7028,485

474, 41678,978124,9093,858

70, 56444

16,07740, 692139, 294

206,317

129,01724,98530,45862,18211, 392

136, 77935, 97361,63419, 66619, 506

198,555

100, 9936,291

94, 702

15,976,10922, 946, 4281, 245, 348

22, 798,888

63, 534,245

12,415,03157, 254,9845, 750, 280

36,085173,231

6,556

7.26.93.5

4.0

. 5

1.9

.5

.5

1.121.714.325.136.1

Secondhalf of 1940

437, 479209,971141,65711,7733,569

17, 57320, 61025, 8776,449

302, 39052,94377,6302,75651, 786

4311,13122,75483, 347

135, 089

102,25319, 47323,37251, 7517,657

109,19728, 55952, 93015, 84511, 863

128,145

71,1984,35566, 843

9, 580, 30213, 262, 679

771,94914, 477, 865

38,238, 435

8, 376, 89234, 400, 4933,498, 351

26,109103,676

5,144

7.77 54.'l

4.4_ t

!6

2.]

.8

1.224.414.825.134.7

Firstalf of 1941

445, 519219, 717141, 41612,3733,000

15, 23321, 70426,0146,062

307, 95752, 39477, 2522,653

50, 24527

10, 09627, 22088, 070

137, 562

86, 00918, 31422, 50638, 6236,566

91,10623, 21644,07114, 5029,317

132, 465

63,1434,00259,141

10, 434, 74314, 376,126

758, 48214, 605, 679

40, 333,971

8, 464, 60136, 425, 6353, 560, 674

26, 494110,152

5,130

7. 77.43.5

4.2

2.0

" r

.6

1.223.213.925.935.6

Secondalf of 1940

236, 05995,37974,9385,1932, 07531,1309,48514,8892,970

163, 44626, 31647,8411,22920,952

266,50911, 27949, 294

72, 613

57, 3469,62013, 05629, 6754,995

71,16714, 82131, 22311, 56713, 556

58, 792

39,2482,211

37, 037

5, 064, 3827, 881,173499,083

8,418, 560

22,013, 576

3, 817, 56719, 678,8712,154, 283

9,26060,107

1,342

6.75.53.6

3.8

.6

1.9

1.119.416.023.035.8

Firstalf of 1941

235, 21498,75173, 6085,5121,636

28, 59610,00014, 6882,423

166, 45926, 58447, 6571,205

20, 31917

5, 98113,47251, 224

68, 755

43, 0086,6717,952

23, 5594,826

45, 67312, 75717, 5635,16410,189

66, 090

37, 8502,289

35, 561

5, 541, 3668, 570, 302

486, 8668,193, 209

23,200,274

3, 950,43020,829, 3492,189, 606

9,59163,079

1,426

6.36.03.5

3.6.2.5

1.7. 2.5.4

1.019.015.023.936.9

State member banks

1 Includes interest on capital notes and debentures.2 For the second half of 1940 these are averages of figures reported on June 29,1940 and Dec. 31, 1940; for the first half of 1941 they are averages

of figures reported on Dec. 31,1940, Apr. 4,1941, and June 30, 1941.3 Represents the aggregate book value of capital stock, capital notes and debentures, surplus, undivided profits, reserves for contingencies,

and other capital reserves.4 Annual basis.Back Figures.—See BULLETIN for November 1940, pp. 1181 and 1182.



INDUSTRIAL PRODUCTION—MAJOR DIVISIONS EXPRESSED AS POINTS IN TOTAL INDEXCOMPILED WITH 1923 WEIGHTS, 1919-1929

[Adjusted for seasonal variation, 1935-39 average for total index=100]

Year and month

1919 .19201921192219231924 .192519261927 .19281929

1 g 19—JanuaryFebruary _ _.MarchAprilMayJuneJulyAugust _ .SeptemberOctoberNovember.December

1920—JanuaryFebruaryMarch. .AprilMay _..JuneJulyAugustSeptemberOctoberNovemberDecember

1921—JanuaryFebruaryMarchApril .MayJuneJuly.. .AugustSeptemberOctober .NovemberDecember.. . . .

1922—January.FebruaryMarch _ . . .AprilMayJuneJulyAugustSeptemberOctober.NovemberDecember.. . ._ _ .

1923—JanuaryFebruary .MarchApril __ . . _MayJuneJuly .AugustSeptemberOctoberNovember .December

In-dustrialproduc-

tion

72755873888290969599

110

716866676772757775747474

828281767878767774726662

585755555756565858616161

636569677074747276808486

858689919291908887868684

Dur-able

manu-factures

29.132 218.528 036.033.037 239.637.340 546.0

30.930.528 627.225.128 530.932.729.127.729.229 0

33.834.633.930 332.133 833.134.333 632.128.726 7

22.420.818 317.317.616 515.617.317.419.419 819.0

20.121.723.827.128 730 330.827.328.631.532 433.9

34.134.335.736.737.737.437.236.336.235.735 635.3

Non-durablemanu-

factures

31.730.629.134 337.035.639 340.942.843 847.6

28.627.527 329.531.432 233.133.034.134.435.034 3

35.634.834.333.733.932 230.829.928 927.024.222 4

24.125.326 627.828.629 730.430.631.131.731 631.5

31.931.832.231.433 134 434.435.335.436.137 838.0

36.637.338.338.438.838.337.336.736.335.735 735.2

Min-erals

10.812.510.010 714.813.513.915.115.114.916.2

11.19.89 4

10.010.410 711.411.112 012.38.9

10 8

12.111.912.211 511.912 512.412.811 912.813.213 3

11.510.910 110.210.49 99.59.79.4

10.09 69.7

10.912.012.97.57 68 38.08.8

11.512.713 314.1

14.014.114.615.615.215.215.515.414.114.814 813.8

Year snd month

1924—JanuaryFebruary __MarchAprilMay. . _ _JuneJulyAugust _SeptemberOctoberNovemberDecember

1925—January __FebruaryMarch . . .April _MayJune . . . . .July _AugustSeptember . _OctoberNovemberDecember . .

1926—January . _.FebruaryMarchApril . .MayJuneJulyAugustSeptember -October.NovemberDecember

1927—JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovember. __December

1928—JanuaryFebruaryM archAprilMayJune . . . . .JulyAugustSeptemberOctoberNovemberDecember

1929—JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

In-dustrialproduc-

tion

868886838076757881828486

898989909089919088929495

939395949495959698989797

969799969796959594929293

94959695979899

101101103105107

108108108110112113114114112110105100

Dur-able

manu-factures

35.636.836.134.731.829.628.830.531.632.232.834.7

36.536.436.636.336.136.236.635.236.439.240.541.4

39.539.439.439.239.339.739.840.140.439.939.238.4

38.138 738.938.538.537.536.836.836.035 034.936.1

37.638.238.338 738 839.840.741.642.143 143.945.2

45. 544.945.946.547.348.649.143. 747.145 642.338.6

Non-durablemanu-

factures

35.935.935.935.534.933.733.434.235.536.637.538.1

38.438.938.839.138.938.439.439.438.939.440.240.7

40.740.540.340.139.740.240.241.042.042.041.842.1

42.142 242.642.643 144.044.043.543.042 542.542.3

42.342.842.642 343 243.243.444.244.344 945. 746.4

46.446.546.847.348.248.648.548.548.548 547.045.7

Min-erals

14.314.914.013.013.013.013.012.813.713.613.413.7

14.213.813.514.214.614.514.715.013.012.913.213.0

12.813.414.814.914 515.015.215 315.515.816 416.4

16.016 317.115.015 214.914.315.114.714 514.414.2

14.314.214.914 514 914.514.515.015.115 515.915.5

16.316.615.616.316.216.116.516.416.716 315.616.0

NOVEMBER 1941 1187


Industrial Production—Major Divisions Expressed as Points in Total Index—ContinuedCOMPILED WITH 1937 WEIGHTS, 1929-1941

[Adjusted for seasonal variation, 1935-39 average for total index=100]

Year and month

192919301931 . . .193219331934 . . .193519361937 . . .193819391940 _ -_

1929—JanuaryFebruaryMarch __ __AprilMayJune _ _JulyAugustSeptemberOctoberNovemberDecember. . . . . . .

1930—JanuaryFebruary .-MarchAprilMay. .JuneJulyAugust . . .SeptemberOctoberNovember __December


1932—JanuaryFebruaryMarchAprilMayJune.JulyAugustSeptemberOctoberNovemberDecember .

1933—JanuaryFebruaryMarchAprilMayJuneJuly . . . .AugustSeptemberOctoberNovemberDecember

1934—JanuaryFebruaryMarchAprilMayJuneJuly . . .AugustSeptemberOctoberNovemberDecember . ._

In-dustrialproduc-

tion

110917558697587

103113

89108123

108108108110112113115114112110105100

100100

98989693898685838179

787980808077767370686766

646362585654535458605958

585754586878858277736970

727579798079737370717277

Dur-able

manu-factures

50.237 325.615 620.324.731.641.046.229 641.252.2

49.548.849.950.751.753.153.853.251.349.745.941.9

42.943.042.441.740.638.836.034.633.731.930.229.1

28.929.229.829.328.326.425.323.721.920.820.520.4

19.418.217.016.215.815.113.713.114.014.514.914.8

14.514.012.314.618.323 528.427.525.624.120.621.5

22.424.826.827.728.828.723.622.721.921.621.624.5

Non-durablemanu-

factures

43.439.437.232 637.138.242.347.149.944 350.753.0

42.242.342.643.043.844.244.144.144.244.343.142.0

41.841.440.841.240.439.838.737.937.837.637.336.9

36.937.638.138.438.938.538.538.237.035.334.534.3

34.434.233.631.430.730.029.631.533.734.634.133.4

33.232.931.133.538. 242.644.141.039.437.336.736.4

37.438.039.039.138.837 637.537.935.738.038.640.1

Min-erals

16.314 112.110 111 612.113.115.117.014 716.217.8

16.316.615.716.516.316.116.716.516.716.315.716.0

15.615.214.314.614.614.414.213.813.513.513.312.9

12.512.112.612.712.412.612.511.611.311.912.011.8

10.610.511.210.59.69.19.39.6

10.210.510.59.9

10.010.510.89.9

11.512.112.713.212.411.611.611.6

11.912.113 012.212.312 212.111.911.911.811.812.2

Year and month

1935—JanuaryFebruaryMarchAprilMayJuneJuly-AugustSeptemberOctoberNovemberDecember

1936—JanuaryFebruaryMarchAprilMay..JuneJuly.AugustSeptember.OctoberNovemberDecember

1937—JanuaryFebruaryMarchAprilMay..JuneJuly. .AugustSeptemberOctoberNovember. . .December

1938—JanuaryFebruaryMarchApril..MayJune..July .AugustSeptemberOctober..November.December

1939—January...FebruaryMarchApril _MayJune.. .JulyAugustSeptemberOctober. . .NovemberDecember. . . .

1940—JanuaryFebruaryMarchApril.. _.MayJuneJuly .AugustSeptemberOctoberNovemberDecember


In-dustrialproduc-

tion

838584828384848789929495

94929398

100103104106108110113116

116118120120121119120119115107

9687

85848482818186909396

100101

101101101

9798

103105106114121124125

122116113112116122122124127130134139

140144147144154159160160160

Dur-able

manu-factures

28.930 329 829 629 128 629.732.333 534 735 736.3

35.434.034.938 540.341.842 542.843.844 845.847.5

47.548.549.150 050.549 050.951.248.943.236.230.4

28.327.627 226.425 725.126.929 531.633.636.236.6

36.836.836.335.335.137.538.841.044.849.150 953.4

51.046.944 844.146.850 451.554.357.158.759.762.4

64.966.868.268.472.074 075.675.376.6

Non-durablemanu-

factures

41 341 541 240 840 841 441 942.143 143 944 544.9

44.643 244.045 245 646.246 948 248.649 450.852.2

52.352 552.753 553 553 051 850.348.746.443.140 8

41.342.042 141.041 342 044.646 246.747.048.148 7

48.848 648.748 348.649 649.650 552.054 055 055.0

52.951.650 050.251.753 452.752.652.454 656.358.2

57.458.859 761.263.265 164.765.064.2

Min-erals

12 812 913 312 112 713 812 512.612 913 713 814.2

14.414 813.914 814 614.715 015 015.215 516.216.3

16.016 518.216 716 917 417 217.517.617.216.716 3

15.714.814 814 413 614 014.314 714.815.015 515 5

15.715 415.813 914.715 816.314 017.318.018 317.4

18.017.417 818.117.818 018.117.417.717 217.918.0

18.017.919 014.519.120 119.919.919.7



INDUSTRIAL PRODUCTION—SELECTED GROUPINGS EXPRESSED AS POINTS IN TOTAL INDEX

[Adjusted for seasonal variation, 1935-39 average for total index = 100]

Year and month TotalIron and

Machineryand trans-portation

equipment

Otherdurable

Textilesand leather

Paper andprinting

Foods,liquors,

andtobacco

Othernon-

durableMinerals

1935—Jan....F e b . -Mar.—ApriL.May—June_-July_-Aug.—Sept—Oct.—Nov.Dec—

1936—Jan.__.Feb.-_Mar.-April..M a y -June-.Ju ly -Aug...Sept._.Oct.-.Nov.-.Dec—

1937—Jan.—Feb.-_Mar.-.ApriLM a y -June-_July-.Aug.—Sept._.Oct.-..Nov...Dec...

1938—Jan—Feb. -Mar-Apr._.May..June..J u l y -Aug...Sept..Oct.__Nov._Dec.-.

1939—Jan.__.Feb..-Mar...April.May—June_-July—Aug._-Sept._.Oct.-.Nov._.Dec—

1940—Jan.—F e b . -Mar...ApriL.May__June—July...Aug.__Sept._.Oct.--.Nov.-Dec.-_

1941—Jan....F e b . -Mar._.ApriL.May—June_.July—Aug.—Sept...Oct.—Nov.-Dec._-

100103104106108110113116

1161181201201211191201191151079687

85

82818186909396100101

1011011019798103105106114121124125

122116113112116122122124127130134139

140144147144154159160160

*>160

9.08.37.97.97.57.89.39.49.910.510.5

9.89.69.711.712.213.113.213.513.914.314.514.9

15.315.215.315.615.914.115.816.015.111.27.45.3

5.86.06.06.05.65.46.68.19.09.911.410.6

10.410.410.29.39.010.511.112.514.717.417.917.8

16.613.611.711.613.916.717.417.918.618.918.819.1

19.719.720.219.920.220.220.420.321.1

13.013.713.913.913.813.513.814.515.215.515.816.0

16.215.315.916.917.718.118.618.318.518.919.620.7

20.220.921.321.521.722.222.422.822.021.118.916.4

14.313.512.812.312.011.711.712.212.913.614.615.5

15.715.815.715.715.916.516.917.418.218.919.721.2

21.621.121.220.921.222.022.224.025.426.327.128.7

29.931.632.833.236.538.139.238.9

*>39. 6

7.07.67.57. 77.47.68.1

9.39.49.7

9.59.19.49.910.410.610.711.111.411.611.711.9

12.012.512.612.912.912.812.712.411.910.99.98.7

8.18.18.48.08.18.18.59.29.710.110.210.6

10.610.610.410.310.210.510.911.211.312.813.313.5

12.812.111.911.611.711.811.912.413.113.413.814.5

15.315.515.115.215.415.616.016.0

P16.0

12.712.512.211.912.012.212.412.613.013.413.813.7

13.512.912.713.313.113.313.914.414.414.715.216.2

16.316.116.416.516.616.314.914.112.911.59.98.9

9.29.810.19.710.110.712.213.413.413.313.914.3

14.414.414.113.814.014.515.014.815.115.716.816.4

15.514.413.313.113.714.214.814.915.116.017.618.2

17.918.619.019.520.420.420.420.0P19.8

8.18.38.38.28.28.38.38.38.68.78.89.0

8.78.68.89.29.39.39.49.69.79.910.510.7

10.710.710.611.011.111.010.910.710.49.89.08.7

8.99.09.08.88.68.69.39.59.59.89.99.7

9.7

9.89.810.311.011.711.711.9

10.810.510.310.611.411.911.411.010.710.911.011.3

11.211.311.611.812.312.712.812.9

P12.7

12.112.212.112.312.312.412.612.512.612.812.812.9

13.212.913.413.413.613.813.714.314.414.714.714.7

14.514.814.814.914.614.414.914.714.314.414.113.7

14.014.113.913.813.714.014.114.014.214.214.514.6

14.614.414.714.614.915.014.515.215.215.315.215.4

15.215.515.315.415.416.115.315.515.216.216.016.5

16.116.516.616.917.117.617.618.3P18.1

8.58.58.58.38.48.5

8.99.09.1

8.89.19.39.69.89.910.010.110.210.410.6

10.711.011.011.111.211.211.110.911.010.710.19.5

9.29.19.28.88.98.78.99.39.69.79.810.0

10.010.010.110.110.010.210.310.210.811.311.311.3

11.311.211.011.111.311.311.211.211.311.511.712.2

12.212.512.513.013.414.314.013.7

P13. 7

12.812.913.312.112.713.812.512.612.913.713.814.2

14.414.813.914.814.614.715.015.015.215.516.216 3

16.016.518.216.716.917.417.217.517.617.216.716.3

15.714.814.814.413.614.014.314.714.815.015.515.5

15.715.415.813.914.715.816.314.017.318.018.317.4

18.017.417.818.117.818.018.117.417.717.217.918.0

18.017.919.014.519.120.119.919.9

NOVEMBER 1941 1189


INTERNATIONAL FINANCIAL STATISTICS

PAGE

Gold reserves of central banks and governments. . 1191Gold production 1192Gold movements . . . 1192International capital transactions of the United States. . 1193-1197Central banks 1198-1201Money rates in foreign countries. 1202Commercial banks 1203Foreign exchanges rates. . 1204Price movements:

Wholesale prices . 1205Retail food prices and cost of living. . 1206Security prices. . 1206

Tables on the following pages include the principal available statistics of current signifi-cance relating to gold, international capital transactions of the United States, and financialdevelopments abroad. The data are compiled for the most part from regularly publishedsources such as central and commercial bank statements and official statistical bulletins;some data are reported to the Board directly. Figures on international capital transactionsof the United States are collected by the Federal Reserve Banks from banks, bankers, brokers,and dealers in the United States in accordance with the Treasury Regulation of November12, 1934. Back figures may in most cases be obtained from earlier BULLETINS and fromAnnual Reports of the Board of Governors for 1937 and earlier years. Daily and monthlypress releases giving daily and monthly average foreign exchange rates will be sent withoutcharge to those wishing them. Other data on the following pages are not regularly releasedprior to publication.



GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS[In millions of dollars]

End of monthUnitedStates

Ar-gen-tina

Bel-gium Brazil

Brit-ish

India

Bul-garia

Can-ada Chile

Co-ombia

Czecho-slo-

vakia

Den-mark Egypt France

Ger-many Greece

1936—Dec....1937—Dec...1938—Dec...1939—Dec...

1940—Sept...Oct....Nov...Dec. . .

1941—Jan....Feb. . .Mar...Apr.. .May. .June. .July...Aug...Sept._.

11, 25812,76014,51217,644

21,24421,50621,80121,99522,11622, 23222, 36722, 50622, 57522, 62422, 67522, 71922, 761

501469431466

2 385369353353353353353353353353353352

632597581

4734734734734

275274274274

274274274274274274274274274274

188184192214

2,9952,5642,4302,709

2,0002,0002,0002,0002,0002,0002,0002,0002,0002,0002,0002,000

27 26242728

282828282828

End of monthHun-gary

Iran(Persia) Italy Japan Java Mexico

Neth-erlands

NewZealand

Nor-way Peru Poland Portu-

galRuma-

niaSouthAfrica Spain

1936—Dec...1937—Dec...1938—Dec...1939—Dec...

1940—Sept...Oct....Nov...Dec...

1941—Jan....Feb...Mar...Apr...May..June..July._.Aug...Sept...

210193144

i 137

463261164164

164164164164164164

798090

109109129140152171178174174173173193

491933998692

634629621617616614614572572573573573

829494

184

114120133152

156157157158158158158171172175178178

203189220249

314328351367376388401413418427431436

»7185 525

End of monthSwe-den

1936—Dec...1937—Dec...1938—Dec—.1939— Dec...

1940—Sept...Oct....Nov...Dec...

1941—Jan....Feb...Mar...Apr...May..June..July...Aug. _.Sept. .

240244321

152150157160165171172174180192189191

Switz-erland

657650701549

490500501502520524527528530528533525

Tur-key

UnitedKing-dom

2,5842,6892,690

9 1

1111111111111

Uru-guay

87

909597

100105108108108

Vene-zuela7

Yugo-slavia B.I.S.

Othercoun-tries 8

183185142149

145145145145145145145145145144144144146

1 Figures relate to last official report dates for the respective countries, as follows: Germany—June 15, 1939; Italy—late in Mar. 1940; Norway—Mar. 30, 1940; Poland—July 31, 1939.

2 Beginning Apr. 1940, reports on certain Argentine gold reserves no longer available.* On May 1,1940, gold belonging to Bank of Canada transferred to Foreign Excrange Con-

trol Board. Gold reported since that time is gold held by Minister of Finance.* Change from previous December due largely to inclusion of gold formerly not reported.* Figures for D e c 1936 and D e c 1937 are those officially reported on Aug. 1,1936, and Apr.

1938, respectively.8 Beginning Mar. 29,1941, gold reserves no longer reported separately.7 Beginning Dec. 1940, figures comprise largely reserves of new Central Bank bu t also

include remaining holdings of four former banks of issue amounting since March 1941 to about$12,000,000.

8 These countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, BelgianCongo, Bolivia, China, Danzig through Aug. 31,1939, Ecuador, El Salvador, Estonia, Finland,Guatemala, Iceland, Latvia, Lithuania, Morocco, and Thailand (Siam). Figures for certainof these countries have been carried forward from last previous official report.

» Gold holdings of Bank of England reduced to nominal amount by gold transfers to Brit-ish Exchange Equalization Account during 1939.

NOTE.—For description of table and back figures see BULLETIN for September 1940, pp .925-934 and pp. 1000-1007; details regarding special internal gold transfers affecting the reportedfigures through April 1940 appear on p . 926 in that issue.

Government gold reserves * not includedin previous figures

End ofmonth

1937—June...D e c . . .

1938—Mar.._June -SeptOct.Dec...

1939—Mar..M a y .June—Sept...Dec...

1940—Mar...June—Sept.Dec. . .

1941—Mar...June _-

UnitedStates

169

44

80154

8516415614586

105488889

UnitedKing-dom

2 9343 1, 395

1,489

759

1,732

France

* 103331559477

Bel-gium

11581

62

44

17

17

17

17

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.

2 Figure for end of Mar. 1937, first date re-ported.

3 Figure for end of Sept. 1937.4 First date reported For complete monthly

series from Oct. 1938-May 1939, see BULLETINfor February 1941, p. 170.

NOTE.—For details regarding special goldtransfers in 1939-40 between the British E. E. A.and the Bank of England, and between theFrench E. S. F . and the Bank of France, seeBULLETIN for September 1940, p. 926.

NOVEMBER 1941 1191


GOLD PRODUCTIONOutside U. S. S. R.[In thousands of dollars]

Year or month

Estimatedworld

produc-tion

outsideU.

Production reported monthly

TotalAfrica

SouthAfrica

Rho-desia

WestAfrica s

BelgianCongo3

North and South America

4 Canada5 Mexico j ^ Chile

Other

Austra- Britishlia India6

$1=15-6/'SI grains of gold 9/10 fine; i. e., an ounce of fine gold=$851934..1935.1936.1937.1938..1939..1940.

823,003882, 533971, 514

1,041, 5761,136, 3601, 212, 7961, 275, 505

1940—July.._AugustSeptember..OctoberNovember..December..

1941—January. _.February. .MarchAprilMayJuneJulyAugust

109, 760109, 305106, 505113,330108, 080107, 800

106,015100,450106, 365105, 525105,105105, 980

707, 288751,979833,088892, 535957, 212

1, 016, 7911,088, 835

92, 66592, 55789, 67297, 80392, 52291, 852

90, 37384, 09089, 526

88,114P8S, 938P93,189P91,171

366, 795377,090396, 768410, 710425, 649448, 753491, 628

41, 93641,98940, 95842,36241, 62041,188

42, 33539, 60842, 07541, 35742, 71641,18643, 09342, 458

24,26425,47728,05328, 29628,53228,00929,155

2,4592,4982,4502,4772,4042,433

2,3262,2372,3182,3552,355

/2, 355/2, 355/2, 355

12,15313, 62516, 29520, 78424, 67028,56432,163

2,5902,7252,6522,7092,6872,668

2,6182,5662,696

2 2, 5802,615f2, 615n, 6i5/2,615

6,5497,1597.3868; 0188,4708,759

38, 862

108,191126, 325152, 509168,159178,143196,391210,109

19,10916, 29417, 32422,00419, 95219, 694

16, 64615, 40816,02316,41316,02216, 46818, 53717, 487

104,023114,971131,181143, 367165, 379178,303185,890

16,00716, 34315, 44016,38615, 77515, 780

15,19914,44615,62915, 38415, 72115, 89015, 983

/15, 983

23,13523,85826,46529, 59132, 30629, 42630,878

3,0104,0272,5962,3371,9052,221

2,9452,6702,7022,4911,4482,845

/2, 845/2, 845

12,04511,51513, 63215,47818, 22519,95122,117

1,9522,1842,0161,7891,7131,675

2,1371,8441,8912,0711,8721,7772,0721,739

8,3509,2519,0189,54410, 29011,37611,999

8501,243673

1,121

784695

1,313896528

1,023628/628

30, 55931, 24040,11846,98254, 26456,18255, 878

4,2634,6934,6165,6384,5924,333

4,5443, 8124,0404,1334,1363,9394,185/4,185

11, 22311,46811, 66311,60711, 28411,07810,157

490560945980945980

840805840805700840875/875

Oold 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 as follows: 1934, $135,000,000; 1935, $158,000,000; 1936, $187,000,000; 1937, $185,000,000; 1938, $180,000,000.

p Preliminary./ Figure carried forward from last previous figure without footnote /.1 Annual figures through 1939 are estimates of U. S. Mint. Annual figure for 1940 and monthly figures are based on estimates of American

Bureau of Metal Statistics given in thousands of fine ounces.2 Beginning April 1941, figures are for Gold Coast only.3 Beginning May 1940, monthly figures no longer reported. Annual figure for 1940 estimated at three times production for first four months

of the year.4 Includes Philippine Islands production received in United States. Monthly figures for U. S. for 1940 represent estimates of American Bureau

of Metal Statistics revised by adding to each monthly figure $242,602 so that aggregate for 1940 is equal to annual estimate compiled by Bureau ofMint in cooperation with Bureau of Mines.

6 Figures for Canada beginning January 1941 are subject to official revision.6 Beginning May 1940, figures are those reported by American Bureau of Metal Statistics.NOTE.—For monthly figures back to January 1929 and for explanation of table and sources see BULLETIN for March 1939, p. 227; February 1939,

p. 151; June 1938, pp. 539-540; and April 1933, pp. 233-235. For annual figures of world production back to 1873 (including Russia-U. S. S. R.), seeAnnual Report of Director of Mint for 1940, p. 101, and 1936, pp. 108-109.

GOLD MOVEMENTSUNITED STATES

[In thousands of dollars at approximately $35 a fine ounce]

Year ormonth

1934 i193519361937193819391940

1940SeptOctNov...Dec

1941JanFebMarApr

MavJune. . .JulyAug.Sept

Totalnet

imports

1,131, 9941, 739,019L, 116, 5841, 585, 5031,973, 5693, 574,1514, 744,472

334,100325, 964330,107137,176

234, 242108, 609118, 567171, 992

34, 83030, 71237,04136, 97365, 702

UnitedKing-dom

France Bel-gium

Neth-er-

landsSwe-den

Switz-er-

landCan-ada

Mex-ico

Colom-bia

Philip-pine

IslandsAus-tralia

SouthAfrica Japan British

India

Allothercoun-tries

Net imports from or net exports (—) to:

499,870315, 727174,093891, 531

I, 208, 7281, 826, 403

633, 083

3,6501,738

93699

371,218

81721

260, 223934, 243573, 671

-13,71081,1353,798

241, 778

1

8,9023

3,35190, 85915,488

165,122977

94, 348227,18571,0066,461

163,049341, 61863,260

7

26

60,14628,715

161, 489

1,746

12, 402968

7,51154, 4521,363

86, 98790, 320

27

563337

86, 82995,17172, 648

111, 48076, 315

612, 9492, 622, 330

217, 627222,726262, 71880, 389

46,87681, 52995, 61920, 216

30, 27013, 66739, 96638, 48236,47233, 61029,880

545538545347

1,147814866

1,147

16, 94410, 89911,91118, 39710, 55723, 23923, 999

2,3307

2,814

3,16811

2,2322,934

12,03815, 33521, 51325,42727, 88035, 63638, 627

3,7642,6733,2833,268

3,1852,7723,9843.587

1,0293,498

23,28034, 71339,16274,250

103, 777

14,60514, 77014, 44114, 994

11,1366,7386,2624,720

12658

181401

22, 862184, 756

7,8546,7046,2401,751

149, 73596

2,788132, 261

4

246,464168, 740165, 605111, 739

13, 22811,81512,18613, 262

6,085

3,046313

76,82075, 26877, 89250, 76216,15950,95649,989

523784

2,1707,446

4,501

32, 30446,98939, 73529, 998

2 67,9753102, 4044 388,468

69,94664, 20827, 58012,805

6,062& 15,093

2,9516,793

Gross imports from:6

2474542

79250

116, 30917, 52119, 22810, 84542, 563

969800

1,088843495

2,794

2,1282,2302,488

3,3842,1144,9725,0983,107

4,1944,5935,1996,7422,064

3,5946988

1373,694

131

1,995

3,5895,0093,8119,011

711, 0451 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce.2 Includes $31,830,000 from Argentina.3 Includes $28,097,000 from China and Hong Kong, $15,719,000 from Italy, $10,953,000 from Norway, $10,077,000 from Chile, and $37,555,000 from

other countries.* Includes $75,087,000 from Portugal, $59,072,000 from Argentina, $43,935,000 from Italy, $33,405,000 from Norway, $30,851,000 from U. S. S. R.,

$26,178,000 from Hong Kong, $20,583,000 from Netherlands Indies, $16,310,000 from Yugoslavia, $11,873,000 from Hungary, $10,802,000 from Chile,$10,775,000 from Brazil, $10,416,000 from Spain, $10,247,000 from Peru, and $28,935,000 from other countries.

6 Includes $11,236,000 from U. S. S. R.6 Beginning May 1941, the Department of Commerce suspended publication of export statistics by country of destination.7 Includes $5,652,000 fron " ~ ~ ~om U. S. S. R.NOTE.—For gross import and export figures and for additional countries see table on p. 1153.



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]

TABLE 1.—TOTAL CAPITAL MOVEMENT

From Jan. 2, 1935, through—

1935—Dec. (Jan. 1, 1936)1936—Dec 301937—Dec. 29 , .

1938—Mar. 30June 29 . _ _Sept 28 •Dec. (Jan. 4, 1939).. _ .

1939—Mar 29June 28 .Sept. 27Dec (Jan. 3, 1940)

1940—Mar (Apr. 3)June (July 3).._

1940—Aug. 7 —Aug 14Aug. 21Aug. 28Sept 4

Sept 11Sept. 18Sept. 25Oct. 2 .

Oct. 9 ,Oct. 16Oct 23Oct. 30

Nov. 6Nov 13Nov 20Nov. 27

Dec. 4Dec. 11Dec. 18Dec 25

1941—Jan. 1

Jan 8Jan.15Jan 22Jan. 29

Feb.5Feb. 12Feb. 19Feb. 26

Mar 5Mar 12Mar. 19Mar 26Apr. 2

Apr 9Apr. 16Apr. 23Apr. 30

May 7May 14May 21May 28

June 4 . ___ .June 11June 18June 25Ju ly2

July 9July 16July 23Julv 30

Total

1,412. 52, 608. 43,410.3

3,207. 23,045. 83,472.03,844. 54,197. 64,659. 25,035. 35,021. 25,115. 95, 440. 7

5, 614.15, 647. 45, 687. 55, 699. 35, 699. 8

5, 668.45, 751.95, 731. 95, 748.1

5, 767. 05, 736. 65, 744. 05, 731.0

5, 745. 05, 734. 75, 786 95, 780. 7

5, 758.05, 718. 25, 763. 75,733 05,727 6

5, 704 05, 781. 35,747 55, 694. 5

5, 644. 35, 609. 95, 563. 85, 564. 5

5 560 85 592 95, 598 85, 567 05, 526. 5

5 647 55, 678. 35, 666. 35, 652. 5

5, 639.15,602. 25,627 85, 635. 8

5, 608. 95, 602 75, 627. 85 620 75, 575. 4

5 584 65, 561. 85, 534. 05 506 9

Increase in foreign bankingfunds in U. S.

Total

603.3930.5

1,168. 5

949.8786.2

1,180. 21,425. 41, 747. 62, 111. 82,479. 52, 430. 82. 539. 02, 830.1

2,941. 22,984. 93,022. 53,034. 23,040. 7

3,014.13,087. 23,062. 63,092. 8

3,108. 53,086. 33,118. 73,112. 5

3,137.03,141.93,199. 33,194.0

3,177. 83,146. 53,182.13,160. 93,159.0

3,152. 93, 257. 63, 255. 23, 215.9

3,175. 93,156. 93,108.13,102. 6

3,128 13,188. 03, 202. 43,185. 23,148. 8

3, 273. 63, 299. 23, 279. 23, 257. 3

3, 243. 53, 224. 23, 252. 03, 266. 4

3, 235. 23, 226. 93, 249. 33 240 93,193. 3

3,194. 63,171.53,153. 63,141.4

Centralbankfunds

in N. Y. i

9.881.1

243.9

149.9125. 9187.0238. 5311.4425.3552.1542. 5539.1922. 3

a 945.0996.3

1,018. 51,047. 91,054. 7

1,012. 81,107. 71,087. 01,112. 3

1,133. 61,129. 91,140.11,158. 9

1,190. 71,195. 51,248. 71,231. 6

1, 209.11,186. 31, 209. 71,182. 41, 200. 8

1,198. 81, 301. 31, 303. 31, 288. 2

1, 269. 01, 255. 01, 228. 81, 243. 4

1, 249. 61, 300.11, 346. 21, 325. 61, 307. 7

1, 416. 61, 434. 71, 424. 01, 406. 4

1, 400.41, 414.81, 421. 21, 417. 5

1, 418. 61,401.31, 407. 91,410 31, 375.1

1, 366 21, 362. 81, 342. 71, 320. 3

Other

593.5849.4924.6

799.9660.4993.2

1,186. 91, 436. 21, 686. 51,927. 31,888. 31,999.91, 907.8

» 1,996. 21,988. 62,004.01,986. 31,986.0

2,001. 31,979. 51, 975. 51,980. 5

1, 975.01,956.41, 978. 61,953. 6

1,946. 31,946. 41,950. 61,962. 5

1,968. 71, 960. 21, 972. 41, 978. 51, 958. 3

1, 954.11, 956. 41,951.91,927. 7

1,906. 91, 901. 81, 879. 41, 859. 2

1,878 51, 887. 91, 856. 21, 859. 61,841.0

1,857. 01, 864. 51, 855. 21,850. 9

1, 843.11, 809. 41, 830. 91, 848. 9

1, 816. 61. 825. 61,841.41,830 71, 818. 2

1, 828. 41, 808. 71,810.91,821.1

Decreasein U. S.banking

fundsabroad

361.4431.5449.1

434.4403.3477. 2510.1550 5607.5618.4650.4631. 6684.1

764.8769.2774.0778.3773.1

768.4773.2782.0773.6

781.8780.9765.6765.7

762.3751.5752.3764.0

763.0757.6771.1771.6775.1

775.8772.2757.1759.9

763.1754.6764.6776.1

764.9752.1756.2755.4767.4

766.4772.4785.0798.9

791.6792.4794.6794.9

803.6811.6815.7817 8818.6

826.2826.2819.4803.5

Foreignsecurities:

Returnof U. S.

funds

125.2316.2583.2

618 5643.1625 0641.8646 7664 5676.9725.7761 6785.6

789.5790 2790 4790.5790.4

790 8791 2791 6793 1

793 5793 9793 9794.4

795 4795.9797 9798.2

800 2801 3802.9802 8803 8

804 6806 4807 6808.1

809 0810.5811 5812.7

814 0814.1814 8815 8812.7

815 6816.2816. 7815.7

832.9833.5834.5835.4

836.3832 6831.6833 1834.1

835 5837.8838. 3838.9

Domesticsecurities:Inflow offoreignfunds

316.7917.4

1,162.0

1,150 41,155. 31,125 41, 219. 71,188 91,201 41,177. 31,133. 71,095 01,042.1

1,019.01 004 01,001 4

996.5995.1

995 2999 8995.0987 0

981 9974.5964 7957.6

950 3946.0936 0924.5

917.4913 5907.5896 3888.7

869 4843.3827 8811.9

799.3792.1783.1775.8

757 3741.9726.9714.7701.8

694.7691.9686.8682.4

673.8655. 2649.6641.6

637.1634.4634. 4632.4631.2

630.0628.2624.8623.6

Inflow inbrokeragebalances

6.012.947.5

54 257.864 147.663 974 083.180.688 798.9

99.699 199 199.9

100.5

99 9100 6100.8101.6

101.3100.9101.2100.7

100.099.4

101.4100.0

99.699.3

100.2101.3100.9

101.3101.799.898.8

97.095.996.597.2

96.696.998.495.895.9

97.198.798.598.2

97.296.897.097.5

96.897.296.796.598.2

98.398.297.999.5

* Including funds in accounts transferred from central bank to government names; for original explanation of funds included under this headingsee BULLETIN for April 1939, p. 285.

a In the week ending August 7, a foreign central bank account amounting to $55,000,000 was changed to a foreign private account.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.

NOVEMBER 1941 1193


INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATESNET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2,1935—Continued

[In millions of dollars. Minus sign indicates net movement from United States]

TABLE 2.—TOTAL CAPITAL MOVEMENT, BY COUNTRIES

From Jan. 2,1935,through- Total

UnitedKing-dom

FranceNeth-

er-lands

Switz-er-

land

Ger-many Italy Other

EuropeTotal

EuropeCan-ada

LatinAmer-

icaAsiai All

other i

1935—Dec. (Jan. 1, 1936)..1936—Dec. 301937—Dec. 29_1938—Dec. (Jan. 4, 1939) _1939—Dec. (Jan. 3, 1940).

1940—Oct. 30Nov . 27Dec. (Jan. 1, 1941)_

1941—Jan. 29Feb. 26Mar. (Apr. 2)Apr. 30May 28June (July 2)

July 9 . . .July 16..July 23..July 30..

1,412. 52,608.43,410. 33,844. 55,021. 2

5, 731. 05, 780. 75, 727. 65, 694. 55, 564. 55, 526. 55, 652. 55, 635. 85, 575. 4

5, 584. 65, 561. 85, 534. 05, 506. 9

554.9829.3993.7

1,183. 81,101.3

931.3927.9865.2866.4771.7716.7789.4760.6696.1

682.0668.7650.1

210.2299.5281.7339.6468.7

679.9675.9670.3667.4667.7665.4668.6670.2670.5

671. 2671.3670.1669.5

114.5229.7311.9328.6470.3

456.9450. 8455.6451.5451.0471.0463.3457.5456.7

455.9455. 9455.8457.0

130.4335.5607.5557.5773.0

896.7895.8911.5890.5879.2883.6872.4881.2

886.3876.1874.0874.7

36.683.1

123.9140.5165.9

173.9173.8175.9175.3176.4177.1177.8177.6177. 6

177.5177.9178.1178.5

24.045.622.132.258.0

75.970.355.449.347.547.447.047.347.0

47.247.047.1

130.0228.5312.2472.0752.9

930.0925.5922.7906.9905.0

899.2884.7883.6

880.7881.4880.8882.3

1,200. 62,051. 32,653.03,054. 23, 790.1

4,141. 64,119. 94, 056. 64, 007. 33, 898. 53, 859. 33, 917. 73, 879.13, 818. 2

3, 804. 43,791.63, 774. 73, 758. 6

()150.5106.3155.3229.4

384.4415.5411.7416.5410. 5394.9410.7403.8400.4

404.4403.0402.8406.9

70.9201.2410.6384.6483.4

601.0606.5606.8611.2597. 5"623.7639.1650.4659.5

656.5656.5649.2640.9

128.3184.0224.6214.2431.0

515.4557.9562.3563.4558.7547.0568.0583. 6579.7

602.2589.5588.3579.4

12.721.415.936.287.4

85.680.990.296.199.3

101.7117.0119.0117.6

117.1121.2119.0121.0

TABLE 3.—FOREIGN BANKING FUNDS IN UNITED STATES, BY COUNTRIES

From Jan. 2, 1935,t h r o u g h - Total

UnitedKing-dom

FranceNeth-

er-lands

Switz-er-

land


EuropeTotal

Europe ada

LatinAmer-

icaAsia' All

other i

1935—Dec. (Jan. 1, 1936).1936—Dec. 301037—Dec. 291938—Dec. (Jan. 4, 1939)1939—Dec. (Jan. 3, 1940)

1940—Oct. 30Nov. 27Dec. (Jan. 1, 1941)

1941—Jan. 29 . . . . ___.Feb. 26Mar. (Apr. 2)Apr. 30May 28June (July 2)

July 9July 16July 23July 30

603.3930.5

1,168. 51,425. 42, 430.8

3,112. 53,194.03,159. 03, 215. 93,102. 63,148. 83. 257. 33, 266. 43.193. 3

3.194. 63,171.53,153. 63,141.4

128.6163.5189.3364.0376.1

306.6325. 0293.3349.7279.2297.3382.8389.9334.4

324.8322.7311.9297.7

129.6144.2111.8155.3256.1

468.7465.5458.0455.1455.0452.8455.6456.1451.0

450.4449.8448.7447.6

55.765.976.387.9

190.9

165.1158.9160.3156.1155.4173.4165.8159.8157.3

156.6156. 6156.4157.5

72.4109.8288.4205.1362.7

476.3479.9494.7482.3475.8484.2475.4493.5500.5

500.4490.2488.4488.5

2.79.6

-11.8-20.1

-20.6-21.6-22.9-24.2-22.7-24.0-239-24.2-24.0

-24.0-23.7-23.4-23.4

7.323.06.91.7

19.7

.6

.1- . 9

- 2 . 8- 3 . 3- 3 . 5- 3 . 8- 4 . 1- 4 . 4

- 4 . 3- 4 . 4- 4 . 3- 4 . 3

60.779.7

109.4208.6470.0

615.6609.4603.7587.5584.6576.9576.7560.6559.6

556.7556.7556.0557.3

453.5588.9791.7

1,010. 71,655. 4

2,012.42,017.11,986. 32, 003. 71,924.11,957.12,028. 72,031. 71, 974. 4

1,960. 71, 948.11, 933. 61, 920. 8

46.086.876.3

101.6174.5

307.9335.0334.1343.4334.6321.4333.9312.0317.8

323.4320.8320.6324.5

33.5149.3166.3127.6215.1

325.1332.7326.4336.1314.2349.3358.0367.2371.9

366.9365.8358.8353.7

58.890.4

126.2163.3325.4

410.3456.0450.9465.0458.4446.9446.9462.5433.7

448.8438.4443.9442.3

11.515.28.0

22.260.5

56.853.261.367.771.374.189.993.095.5

94.998.596.7

100.0

TABLE 4—UNITED STATES BANKING FUNDS ABROAD. BY COUNTRIES

From Jan. 2, 1935,t h r o u g h - Total

UnitedKing-dom

FranceNeth-

er-lands

Switz-er-

land


EuropeTotal

EuropeCan-ada

LatinAmer-

icaAsia* All

other i

1935—Dec. (Jan. 1, 1936)1936—Dec. 30.1937—Dec. 291938—Dec. (Jan. 4, 1939)1939—Dec. (Jan. 3, 1940).

1940—Oct. 30 _Nov. 27Dec. (Jan. 1, 1941) . . . .


July9July 16July 23July 30

361.4431.5449.1510.1650.4

765.7764.0775.1759.9776.1767.4798.9794.9818.6

826.2826.2819.4803.5

208.8178.0207.4206.2252.2

272.5270.7269.2269.2271.4268.2269.6267.4268.6

268.3268.7267. 9265.3

48.162.065.368.473.8

75.074.474.675.475.676.075.976.476.6

76.776.876.876.8

- . 4- 3 . 3- 4 . 4- 5 . 612.9

17.617.517.717.817.817.817.717.817.8

17.817.817.817.9

1.62.72.62.62.9

6.16.26.55.94.25.05.35.25.2

5.25.35.35.2

29.766.0

105.1141.7177.8

187.2188.2191.6192.4193.0195.0195.7195.9195. 7

195.6195.7195.6196.0

13.716.36.5

13.715.5

24.025.025.325.525.525.625.525.525.6

25.625.625.625.1

8.822.026.933.828.4

46.547.849.848.748.849.750.751.451.2

51.251.651.651.7

310.2343.7409.3460.9563.5

628.9629.8634.7634.8636.3637.2640.4639.5640.8

640.4641.4640.6638.0

-21.735.956.5

63.966.560.362.665.465.371.368.368.5

68.669.570.671.3

20.124.951.666.852.6

42.940.143.240.150.944.447.749.852.1

53.653.753.549.2

37.330.418.7

-46.5-21.5

27.726.434.820.221.619.238.737.657.7

64.161.755.246.7

—1.6- 4 . 4- 8 . 7- 7 . 0- . 8

2.21.22.12.01.91.3

- . 4

- . 5- . 1- . 5

- 1 . 7

i Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other"* 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 STATESNET CAPITAL MOVEMENT TO THE UNITED STATES SINCE JANUARY 2,1935—Continued

[In millions of dollars. Minus sign indicates net movement from United States]TABLE 5.—FOREIGN SECURITIES, BY COUNTRIES

Net Purchases by Foreigners

From Jan. 2, 1935,through- Total

UnitedKing-dom

FranceNeth-

er-lands

Switz-er-

landGer-

many Italy OtherEurope

TotalEurope

Can-ada

LatinAmer-

icaAsia* All

other *

1935—Dec. (Jan. 1, 1936).1936—Dec. 301937—Dec. 291938—Dec. (Jan. 4, 1939)1939—Dec. (Jan. 3, 1940).

1940—Oct. 30Nov. 27Dec. (Jan. 1, 1941)



125.2316.2583.2641.8725.7

794.4798.2803.8808.1812.7812.7815.7835.4834.1

835.5837.8838.3838.9

67.8116.1136.8127.7125.5

130.0129.7128.6128.7129.0128.3127.8127.7127.2

127.5127.5127.5127.7

6.818.222.826.142.1

42.942.943.443.543.643.743.843.849.1

50.350.550.650.8

7.410.421.227.329.4

31.031.031.031.031.031.031.031.031.0

31.031.031.231.2

-1 .213.730.436.145.0

46.346.046.046.145.845.245.244.844.7

44.644.644.544.5

13.322.526.633.536.6

36.536.536.536.536.536.536.536.536.5

36.536.536.536.5

2.99.4

13.522.027.6

28.128.128.128.128.128.128.128.128.1

28.128.128.128.1

46.187.9

115.2167.8189.0

196.0196.1196.4197.2198.1198.9199.1199.5199.6

199.6199.7199.7199.8

143.1278.3366.4440.6495.2

510.9510.4510.0511.2512.1511.8511.5511.4516.2

517.6517.8518.1518.5

-39 .71.7

10.5-9 .7- 7 . 6

21.323.525.025.826.426.525.942.737.0

36.337.237.236.8

12.715.7

175.0167.4184.0

198.6199.8202.3203.5204.5203.0206.0208.1210.5

210.7211.6211.8212.3

7.917.024.533.842.8

50.551.253.054.255.957.658.259.060.1

60.460.560.760.8

1.13.56.89.7

11.3

13.113.313.513.513.813.914.214.210.4

10.510.510.510.5

TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIESNet Purchases by Foreigners

From Jan. 2, 1935,through—

1935—Dec. (Jan. 1, 1936)1936—Dec. 301937—Dec. 291938—Dec. (Jan. 4, 1939)1939—Dec. (Jan. 3, 1940)

1940—Oct. 30Nov. 27Dec. (Jan. 1, 1941)


July9July 16July 23 __July 30

Total

316.7917.4

1,162. 01, 219. 71,133. 7

957.6924.5888.7811.9775.8701.8682. 4641.6631.2

630.0628.2624.8623.6

UnitedKing-dom

149.8367.7448.7472.6328.1

205.0185.2157.1101.775.16.2

-7 .5-41.0-50. 5

-51.2-52.9-54. 6-56.6

France

23.464.770.376.976.6

74.174.174.474.274.274.274.374.574.6

74.574.674.674.8

Neth-er-

lands

50.5157.6213.8212.1227.7

230.6230.9233.2233.3233.2234.9234.8234.7236.1

235. 9235.9235.8235.8

Switz-er-

land

55.1200.2275.3304.1344.7

349.6346.8348.1340.2338.9334.7332.1324.1321.7

321.7321.8321.7322.2

Ger-many

-5 .4- 7 . 5

-17.4-22.8-28.2

-29.1-29.1-29.1-29.2-30.2-30. 3-30. 3-30.4-30. 4

-30 . 4-30 . 4-30 . 4-30 . 4

Italy

- . 1- 3 . 3-4 .9- 5 . 5- 4 . 9

23.117.02.7

-1 .6-3 .0-3 .0-3 .0-2 .5- 2 . 5

-2 .4-2 .4-2 .5-2 .4

OtherEurope

12.938.555.756.660.4

64.564.664.964.664.564.864.964.864.8

64.764.664.664.5

TotalEurope

286.2818.0

1,041. 61,094.11,004.4

917.9889.6851.3783.2752.6681. 5665. 3624.2613.8

612.9611.3609.3607.9

Can-ada

2.832.637.625.7

-2 .6

-19.0-20.3-18.4-25.7-26.9-28.9-31.8-31.3-34.4

-35.6-36.3-36.9-37.8

LatinAmer-

ica

3.715.518.223.730.1

26.225.125.624.721.820.920.619.519.3

19.519.619.319.2

Asia1

21.444.154.765.287.6

20.017.517.617.716.816.917.017.921.1

21.722.121.722.9

Allother i

2.87.19.8

11.114.3

12.612.612.612.011.411.311.311.311.4

11.411.411.511.4

TABLE 7.—BROKERAGE BALANCES,' BY COUNTRIES

From Jan. 2, 1935,through—

1935—Dec. (Jan. 1, 1936)1936—Dec. 30....1937—Dec. 291938—Dec. (Jan. 4, 1939)1939—Dec. (Jan. 3, 1940)

1940—Oct. 30Nov. 27Dec. (Jan. 1, 1941)

1941—Jan. 29Feb. 26Mar. (Apr. 2)___Apr. 30May 28June (July 2)

July9July 16July 23July 30

TotalUnitedKing-dom

()4.0

11.513.419.4

17.117.217.017.117.016.716.716.616.4

16.116.016.116.0

France

2.410.411.512.920.1

19.118.919.919.219.318.719.019.419.2

19.419.519.319.6

Neth-er-

lands

1.3- . 95.06.89.3

12.512.513.413.313.513.914.014.314.5

14.514.514.614.7

Switz-er-

land

2.59.1

10.89.6

17.8

18.316.916.215.914.414.514.313.614.5

14.314.214.114.2


Europe

1.4.4

5.05.25.0

7.37.67.98.99.17.97.88.48.4

8.58.88.99.0

TotalEurope

7.622.644.047.971.6

74.473.174.374.473.371.771.872.373.1

72.872.973.173.4

Can-ada

-4 .5-7 .6

3.51.88.7

10.210.710.710.410.910.611.412.011.6

11.611.711.412.1

LatinAmer-

ica

1.0- 4 . 2- . 5- . 91.6

8.38.89.26.86.16.17.05.85.7

5.75.85.86.5

Asiai

2.92.1.5

- 1 . 5-3 .4

6.86.76.06.36.16.47.26.77.1

7.36.96.86.7

Allother i

- . 9)

( )

2.1

1.0.7.7.9.9

1.1

i Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other".> For explanation see BULLETIN for May 1937, pp. 395-396.* Inflow less than $50,000.< Outflow less than $50,000.

NOVEMBER 1941 1195


INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATESOUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES

[Outstanding amounts in millions of dollars]TABLF 8.—SHORT-TERM LIABILITIES TO FOREIGNERS, BY COUNTRIES

Date TotalUnitedKing-dom

FranceNeth-

er-lands

Switz-er-

landGer-

many Italy OtherEurope

TotalEurope

Can-ada

LatinAmer-

icaAsia* All

other i

Reported by Banks in New York City

1929—Dec. 311930—Dec. 31_1931—Dec. 301932—Dec. (Jan. 4, 1933)1933—Dec. (Jan. 3, 1934)1934—Nov. 28 2

1934—Dec. 5 3Dec. (Jan. 2, 1935).

1935—Dec. (Jan. 1, 1936)1936—Dec. 301937—Dec. 291938—Dec. (Jan. 4, 1939)

1939—Mar. 29 _June 28Sept. 27Dec. (Jan. 3, 1940)

1940—Mar. (Apr. 3)Apr. (May 1)May 29June (July 3)July 31Aug. (Sept. 4)Sept. (Oct. 2)Oct. 30Nov. 27Dec. (Jan. 1, 1941)



2,672. 72, 335.01,303.5

733.8388.2466.7

301.5214.5104.9171.048.359.1

923.7799.4549.2

72.224.932.7

99.1122.244.613.88.3

12.7

105. 2222.266.082.211.99.7

204.5161.041.130.216.325.8

157.4111.233.236.69.9

14.3

371.3281.3122.263.130.141.7

2,162.81,911.7

961.2469.1149.7196.0

241.8216.8148.389.388.791.9

188.2130.8103.3117.896.4

106.6

49.038.269.044.443.160.3

Reported by Banks in United States

584.8597.0

1, 200. 21, 491. 61, 729. 61, 996. 6

2, 318. 82, 683.03,050. 73,057.0

3,165. 23,188. 33,178. 73,456. 33,526.23, 666. 93, 719.03, 738. 73,820. 33, 785. 23,842.13, 728. 83, 775.03, 883. 53,892. 63, 819. 5

3, 820. 93, 797. 73, 779. 83, 767. 6

79.676.9

205.5235.7261.5436.1

473.9607.4656.7448.2

361.3326.6354.5397.9343.0385.7386.4378.8397.2365.5421.9351.4369.4454.9462.0406.6

397.0394.9384.0369.8

36.133.9

163.5176.3143.9187.4

219.5284.4295.9288.2

290.7286.7319.1504.8497.3515.2503.5500.8497.6490.1487.2487.1484.9487.7488.2483.1

482.5481.9480.8479.7

13.512.968.678.889.1

101. 8

143.9146.0186.0204.9

199.7213.1198.3184.7178.3182.7180.3179.1172.8174.3170.0169.4187.3179.7173.7171.2

170.5170.6170.3171.5

12.113.786.1

123.5302.1218.8

247.1240.8299.9376.3

432.2447.6413.6441.0449.2476.4459.6490.0493.5508.4496.0489.5497.8489.1507.2514.2

514.1503.9502.15C2.2

28.429.929.032.039.017.8

18.715.17.89.5

8.48.59.99.8

13.610.513.29.18.06.75.57.05.65.75.55.7

5.76.06.26.2

16.818.826.141.725.720.4

14.812.217.138.5

69.371.365.029.825.826.124.619.418.917.916.015.515.315.014.714.4

14.514.414.414.4

40.646.8

107.5126.3156.0255.5

314.7366.9446.4516.9

618.7616.1619.3625.7634.7651.7667.5662.5656.3650.6634.4631.5623.8623.6607.5606.5

603.6603.6602.9604.2

227.1232.9686.3814.3

1,017.11, 237. 8

1,432. 71,672. 71,909. 71,882. 6

1,980. 31, 969. 91,979.82,193.82,141.92,248. 42,235.02, 239. 62,244. 32, 213. 52, 230. 92,151. 32,184. 32, 255. 92, 258. 92, 201. 6

2,187. 82,175. 22,160.82,148. 0

103.399.3

145.3186.1175.6201.8

236.6291.7325.3274.6

250.1255.3236.0259.2353.9395.9410.7408.1435.2434.3443.6434.8421.5434.0412.2417.9

423.6420.9420.7424.7

117.4122.8156.3263.9280.9248.5

300.7363.0383.0336.0

365.5389.9402.4421.4420.8432.3438.4446.0453.6447.3457.0435.1470.2478.9488.1492.8

487.9486.74.79. 7474.6

125.1130.1188.9200.2236.0274.3

305.5306.0366.5491.4

515.2517.6501.9521.7542.8527.6567.7576.3622.0616.9631.0624.4612.9612.9628.5599.7

614.8604.3609.9608.3

31.037.521.613.110.411.9

12.012.023.427.120.034.1

43.349.766.272.5

54.155.658.660.366.762.767.168.765.173.379.683.386.1

101.8104.9107.5

106.8110.5108.7112.0

Additional Detail Available from January 3,1940 4

Date

1940—Mar. (Apr. 3)Apr. (May 1)May 29 _ __ __June (July 3)July 31Aug. (Sept. 4)Sept. (Oct. 2)Oct. 30Nov 27Dec. (Jan. 1, 1941).

1941—Jan. 29 _Feb. 26Mar. (Apr. 2)April 30 __ . -May 28June (July 2)

July 9July 16July 23 __ ._ _July 30

Total

475.1460.2443.3457.0457.7466.7470.3469.0466.2462.7450.5437.9429.6433.1426.3425.7

425.2423.8423.6425.5

5 European countries

Bel-gium

184.3183.7172.0161.3154.9150.9147.9145.7145.7144.8143.2140.7135.4134.1125.1125.5

124.4124.0123.3123.4

Den-mark

28.723.021.119.518.417.216.816.216.117.317.117.016.416.115.215.9

16.816.716.717.8

Fin-land

25.027.229.529.629 126. 329.124.322.016.514.112 310.612.510.35.4

5.45.45 65.5

Nor-way

68.467.564.159.057.854.351.251.350.148.748.346.245.044.844.243.7

43.743.543.343.2

Swe-den

168.6158.9156.7187.6197.5218.0225.3231.5232.4235.4227.7221.6222.2225.6231.5235.2

235.0234.2234.8235. 5

6 Latin American countries

Total

275.4297.1311.8326.5321.3332.2338.8348.2353.3341.7342.5319.6348.6349.1355.8364.2

362.2362.6358.6353.6

Ar-gen-tina

63.580.683 388.793.1

103.9110.1112.7115.1115.4118 ?,103,3104.5103.4107 1119.4

119.3123.3117 7118.6

Bra-zil

35.335.034.839.038 031.433.439.744.136.245.435 144.050.652 453.4

52.449.049 946.6

Chile

24.723.424.830.229.227.826.125.026.928.526.125.330.528.829.429.4

29.929.828.928.0

Cuba

43.246.449.649.748.151.148.748.446.447.948.647.351.555.660.660.1

60.060.863.266.4

Mex-ico

68.467.268.665.360.358.563.264.462.655.049.352.653.548.648.842.6

43.343.842.942.3

Pan-amaand

C. Z.

40.244.550.653.552.759.657.357.958.658.754.855.964.562.157.559.4

57.455.955.951.7

4 Asiatic countries

Total

455.1461.3446.2448.4446.6408.3431.6432.5475.2454.5464.3464.4447.9420.5418.8393.4

393.8387.9386.9381.1

China

178.5184.1178.8181.8181.6184.7192.7195.1218.6207.5210.5217.5216.7187.0176.5164.4

163.6163.3162.3159.9

HongKong

75.281.179.478.484.387.687.089.492.291.193.497.594.592.895.9

101.3

102.3102.1103.7102.3

Japan

169.4164.1151.8152.6142.697.4

106.8102.8119.3110.3114.1103.490.892.594.979.2

81.376.377.576.3

Philip-pine

Islands

32.032.036.235.638. 238.745.245.245.145.646.346.045.948.251.548.5

46.646.243.442.6

1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other".2 Last report date on old basis.3 First report date on new basis.4 The figures in this supplementary table represent a partial analysis of the figures in the main table under the headings of Other Europe, Latin

America, and Asia.NOTE.—The figures given in this table are not fully comparable throughout as a result of certain changes or corrections in the reporting practice

of reporting banks which occurred on Aug. 12, 1936, Jan. 5, 1938, Oct. 18, 1939, and May 7, 1941. (See BULLETIN for May 1937, p . 425; April 1939,p. 295; April 1940, p . 362; and September 1941, p . 917.)



INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATESOUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES

[Outstanding amounts in millions of dollars]

TABLE 9.—SHORT-TERM FOREIGN ASSETS, BY COUNTRIES

Date TotalUnitedKing-dom

FranceNeth-

er-lands

Switz-er-

landGer-many Italy Other

EuropeTotal

EuropeCan-ada

LatinAmer-

icaAsia' All

other

Reported by Banks in New York City

1931—Dec. 301932—Dec. (Jan. 4, 1933)1933—Dec. (Jan. 3, 1934)1934—Nov. 282.— _

1,103. 3949.4907.1827.1

166.289.4

197.9201.3

29.567.665.094.1

20.914.218.115.9

12.66.4

12.58.5

467.2433.7258.1178.8

18.711.516.810.7

149.296.183.960.2

864.719.652.569.

3035

5843.34.84.

1974

136.158.159.124.

5224

412454.46.

8862

Reported by Banks in United States

1934—Dec. 5 3

Dec. (Jan. 2, 1935)1935—Dec. (Jan. 1,1936)1936—Dec. 301937—Dec. 291938—Dec. (Jan. 4, 1939)

1939—Mar. 29. _June 28Sept. 27Dec. (Jan. 3, 1940)

1940—Mar. (Apr. 3) __Apr. (May 1)May 29June (July 3)July 31Aug. (Sept. 4)Sept. (Oct. 2)Oct. 30Nov. 27Dec. (Jan. 1,1941)

1941—Jan. 29Feb. 26Mar. (Apr. 2)Apr. 30May2SJune (July 2)

July 9__.July 16-July 23_.July 30..

1,137. 81,139. 9

778.6672.6655.0594.0

553.6496.6485.7508.7

527.5515.7475.0475.0444.9386.0385.5393.4395.1384.0399.2383.0391.7360.2364.2340.5

332.9332.9339.7355.6

266.4296.988.1

114.184.886.0

83.055.466.039.9

39.736.830.132.028.222.620.219.621.423.023.020.724.022.624.723.5

23.923.524.326.9

108.280.532.516.813.510.3

13.810.78.74.9

4.98.47.96.24.54.23.53.74.34.23.43.12.82.82.42.1

2.12.02.02.0

19.218.619.021.923.024.2

20.119.79.65.7

6.78.03.22.61.91.21.11.01.1

.9

.8

.8

.8

.9

.9

.8

.8

.8

.8

.7

8.38.26.65.45.55.5

3.64.52.95.2

6.26.46.03.82.51.91.51.91.91.52.13.83.12.72.92.9

2.82.82.82.9

239.6231.7202.0165.1126.189.4

81.477 A67.153.4

50.149.447.347.346.646.045.644.043.039.638.838.236.135.535.335.5

35.635.535.635.2

26.527.213.510.920.813.5

16.49.5

12.211.8

16.917.218.314.29.64.12.83.32.22.01.71.71.71.71.71.6

1.61.61.62.1

81.380.071.257.852.945.9

48.839.941.651.4

48.648.644.641.036.634.934.833.332.029.931.131.030.129.128.428.6

28.628.228.228.1

749.5743.2433.0392.1326.5274.9

267.1217.0208.1172.2

173.2174.7156.5147.2130.0115.0109.4106.8106.0101.0100.999.498.695.396.395.0

95.394.395.297.8

91.296.3

100.959.4

118.060.4

46.354.049.739.7

42.237.126.735.331.331.230.832.429.736.033.630.830.925.027.927.8

27.626.725.724.9

170.7174.6154.5141.1114.499.1

99.5110.3108.5113.3

110.7114.3113.3117.0116.3112.3113.1123.1125.9122.7125.8115.1121.6118.3116.2113.9

112.4112.3112.4116.8

118.1117.480.167.278.9

144.1

125.7100.5104.0174.1

192.6181.0169.5167.9159.8118.6125.7124.9126.2117.8132.4131.0133.4113.9115.094.9

88.590.997.4

105.9

2.63.56.32.6

8.38.5

10.112.917.215.5

14.914.815.49.3

8.98.69.07.77.58.96.46.37.36.46.56.67.27.7

9.08.6

10.2

Additional Detail Available from January 3,1940 *

DateTotal

5 European countries

Bel-gium

Den-mark

Fin-land

Nor-way

Swe-den

6 Latin American countries

TotalAr-gen-tina

Bra- Chile )uba Mexico

Pan-amaandC.Z

Total

4 Asiatic countries

)hina HongKong Japan

Philip-pine

Islands

1940—Mar. (Apr. 3)Apr. (May 1)May 29June (July 3)July 31Aug. (Sept. 4)Sept. (Oct. 2)Oct. 30Nov. 27Dec. (Jan. 1, 1941)


19.417.614.110.69.17.77.57.66.15.55.65.64.84.44.24.4

July 9.-.July 16-July 23..July 30..

44.44.44.4

2.21.41.1.7.4.3.3.3.3.3.3.3.1.1

.81.01.51.51.61.71.71.91.1.81.1.1.91.91.92.0

2.02.02.02.0

4.03.42.41.51.31.21.21.11.0

4.53.74.23.42.82.92.72.1.8

1.01.21.2.9.6.6.6

71.473.973.977.575.672.172.581.482.978.480.068.371.169.067.4

68.668.72.4

12.512.416.416.16.415.114.813.213.511.11.110.010.410.812.712.6

12.12.112.413.8

33.034.432.133.732.831.330.40.239.033.134.024.430.028.124.125.4

25.26.225.927.3

9.49.79.59.

10.39.6

10.010.11.713.414.914.312.212.012.213.2

12.912.812.913.5

10.11.29.8

11.49.99.9

10.610.911.511.711.811.310.710.39.79.8

9.89.99.8

10.0

4.75.05.04.84.74.54.54.65.36.16.15.95.45.46.05.9

5.15.25.35.6

1.11.21.11.31.51.71.91.71.92.12.12.42.52.52.2.7

2.52.52.42.3

182.6169.8160.1155.2145.3102.3109.8110.7113.9103.8117.9114.115.297.(198.(178.2

73.076.283.090.6

26.123.924.530.230.524.024.224.224.023.724.223.526.526.129.231.1

31.34.1

1.71.81.1.62.3.4.33.01.51.71.1

1.02.72.7

2.82.93.13.0

125.9115.6103.290.678.645.053.258.062.855.871.868.367.346.941.117.3

16.319.022.927.1

28.928.530.532.733.629.528.225.425.622.620.721.520.423.025.027.1

24.724.625.326.4

1 Prior to Jan. 3, 1940, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other".2 Last report date on old basis.3 First report date on new basis.4 The figures in this supplementary table represent a partial analysis of the figures in the main table under the headings Other Europe, Latin

America, and Asia.a Less than $50,000.NOTE.—The figures given in this table are not fully comparable throughout as a result of certain changes or corrections in the reporting prac-

tice of reporting banks which occurred on Aug. 12, 1936, and Oct. 18, 1939 (see BULLETIN for May 1937, p. 431, and April 1940, p. 363).

NOVEMBER 1941 1197


CENTRAL BANKS

Bank of England

(Figures in millions ofpounds sterling)

Assets ofissue dept.

Gold* Otherassets 2

Assets of banking department

Cash reserves

Coin Notes

Dis-countsand ad-vances

Securi-ties

Notecircula-

tion3

Liabilities of banking department

Deposits

Bankers'

71.0132.4126.4102.4101.289.172.1

150.6120.6101.0117.3

116.0108.0110.8135.7

107.9121.7118.6131.8110.9112.5132.1125.7133.9

Public

8.86.67.78.9

22.29.9

12.112.111.415.929.7

13.518.327.112.5

32.414.622.013.632.325.311.314.910.6

Other

35.836.240.333.836.536.437.139.236.636.842.0

51.951.550.351.2

53.053.052.357.252.150.450.549.152.2

Otherliabili-

ties

1929—Dec. 25.1930—Dec. 31.1931—Dec. 30.1932—Dec. 28.1933—Dec. 27.1934—Dec. 26_1985— Dec. 25.1936—Dec. 30_1937—Dec. 29.1988— Dec. 28.1039—Dec. 27.

1940—Sept. 25.Oct. 30.Nov. 27.Dec. 25.

1041—Jan. 29..Feb. 26.Mar. 26.Apr. 30_May 28.June 25July 30_Aug. 27.Sept. 24.

145.8147.6120.7119.8190.7192.3200.1313.7325.4326.4

260.0260.0275.0275.0260.0260.0260.0200.0220.0230.0580.0

5 630.0630.0630.0630.0

630.0630.0630.0

5 680.0

680.0680.0680.0

5 730. 0

.2

.6

.6

.81.0.5

.8

.81.0

.51.0.9

1.01.41.11.51.61.71.71.81.6

26.338.831.623.658.747.135.546.341.151.725.6

25.538.736.913.3

31.027.018.856.950.741.321.815.558.8

22.349.027.318.516.87.68.5

17.59.2

28.54.3

3.53.06.94.0

3.83.7

45.328.311.46.96.56.44.6

84.9104.7133.0120.1101.498.294.7

155.6135.590.7

176.1

169.7153.3161.2199.1

175.4175.4145.8133.7149.4156.2181.7183. 9149.8

379.6

364.2371.2392.0405.2424.5467.4505.3504.7554.6

604.8591.6593.3616.9

599.2603.2611.5623.4629.5639.0658.4664.7671.4

17.918.018.018.018.018.018.018.018.018.017.9

18.117.717.817.9

18.018.118.117.717.817.817.918.018.1

Bank of France

(Figures in millionsof francs)

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—Dec. 29..1939—Dec. 28..

1940—Jan. 25...Feb. 29..Mar. 28_.Apr. 25_.M a y 30_.Junel0__Aug. 29iiSept. 26HOct. 31ii_Nov. 28HDec. 26H.

1941—July 3 1 -

Assets

Gold6

41,66853, 57868,86383,01777,09882,12466,29660,35958,93387, 265

i°97,267

97, 26897, 275

i«84, 61484, 61584, 61684, 61684, 61684, 61684,61684, 61684, 616

84,598

For-eignex-

change

25,94226,17921,1114,4841,158963

1,3281,460911821112

111109111112102108(12)

(12)

(12)

(12)

42

37

Domestic bills

Openmarket7

5,6125,3047,1576,8026,1225,8375,8005,6405, 5807,42211,273

11,86112, 50542, 64542, 69444,08344,173

(12)(12)(12)(12)

43,194

40,776

Spe-cial 7

1,379652

1,7972,345

2,2351,8101,8701,7811,8891,518

(12)(12)(12)(12)661

Other

8,6248,4297,3893,4384,7393,9719,7128,46510,0667,8805,149

5,0114,6305,0055,76914, 47311, 885

(12)(12)(12)(12)

3,646

6,418

Advances toGovernment

For occupa-tion costs 8

27, 20039,20056, 80664, 39772, 317

117,715

Other7

17,69831,90920, 62734, 673

35,67340, 52320, 55020,90032, 60036, 25064,19569,34065, 25061, 20063,900

69, 500

Otherassets

8,1249,51011, 27511,71211,17311, 50011, 70512,64211,73318,49820,094

19,63620, 78519,66619, 30522, 72925, 221

(12)

(12)

(12)

(12)

23,179

22, 605

Liabilities

Notecircula-tion

68,57176,43685,72585,02882, 61383, 41281,15089,34293, 837110,935151, 322

151,738156,150156,032156, 285170,853174, 469198, 578205,439213,131214,176218, 383

242,000

Deposits

Govern-ment

11,73712, 6245,8982,3112,3223,7182,8622,0893,4615,0611,914

1,8341,2031,1541,1711,0461,049995990

1,097748

3, 795

C.A.R.9

27, 20034,93038, 93239,10741, 400

P60, 600

Other

7,85011, 69822,18320, 07213, 41415, 3598,71613, 65519, 32625, 59514, 751

14,96517,12814, 26214, 68125, 78225, 40528, 22625,70025, 07524,94127, 202

P31, 513

Otherliabili-ties

1,8122,2411,9892,0411,9401,9072,1132,5573,1602,7182,925

3,2593,1563,0143,0382,8112,848

(12)(12)(12)(12)

3,586

3,741

p Preliminary.i Through February 1939, valued at legal parity of 85 shillings a fine ounce.J Securities and silver coin held as cover for fiduciary issue, the amount of which is also shown by this figure.* Notes issued less amounts held in banking department.< On Jan. 6,1939, £200,000,000 of gold (at legal parity) transferred from Bank to Exchange Equalization Account; on Mar. 1, 1939, about £5,-

£00,000 (at current price) transferred from Exchange Account to Bank; on July 12, 1939, £20,000,000 of gold transferred from Exchange Accountto Bank; on Sept. 6, 1939, £279,000,000 transferred from Bank to Exchange Account.

5 Fiduciary issue increased by £50,000,000 on June 12, 1940, and Apr. 30 and Aug. 30, 1941.6 Gold revalued in Mar. 1940, Nov. 1938, July 1937, and Oct. 1936. For further details see BULLETIN for May 1940, pp. 406-407; January 1939,

p . 29; September 1937, p. 853; and November 1936, pp. 878-880.7 For explanation of this item, see BULLETIN for July 1940, p. 732.8 By a series of Conventions between the Bank of France and the Treasury, dated Aug. 25, Oct. 29, Dec. 12, and Dec. 30, 1940, and Feb. 20,

Apr. 30, May 10, June 11, and Sept. 23,1941, advances of 130,000,000,000 francs have been authorized to meet the costs of the German army of occu-pation. (Dates of Conventions revised on basis of information in Bank's statement for July 31, 1941.)

9 Central Administration of the Reichskreditkassen.i° In each of the weeks ending Apr. 20 and Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Exchange Stabilization Fund to Bank of

France; in week ending Mar. 7, 1940, 30,000,000,000 francs of gold transferred from Bank of France to Stabilization Fund,ii Figures taken from annual report of Bank for 1940." Figure not available.NOTE.—For further explanation of tables see BULLETIN for February 1931, pp. 81-83.



Central Banks—Continued

Reichsbank(Figures in millions of

reichsmarks)

Assets

Reserves of gold andforeign exchange

Totalreserves Gold*

Bills (andchecks),includingTreasury

bills

Securityloans

Securities

Eligibleas notecover

OtherOtherassets

Liabilities

Notecircula-

tionDeposits

Otherliabili-ties

1929—Dec. 31 ..1930—Dec. 31..1931—Dec. 3 1 -1932—Dec. 31._1933—Dec. 30—1934—Dec. 31-1935—Dec. 31 _.1936—Dec. 31..1937—Dec. 31 __1938—Dec. 31. _1939—Dec. 30__

1940—Sept. 30..Oct. 31...Nov. 30..Dec. 31..

1041—Jan. 31 . . .Feb. 28. .Mar. 31..Apr. 30_ _May 31. .June 30. _July 3 1 -Aug. 3 0 -Sept. 30?

2,6872,6851,156

920396848872767678

78787878

777778787878787777

2,2832,216

3867982667171

2,8482,5724,2422,8063,2264,0664,5525,5106,1318,244

11, 392

13,20613,06913, 53215, 419

14,50315, 28415,36715, 64415,91816, 25816,75417, 30618, 016

2512562451761831468474604530

163126

259445349221106557804

50565132

282432221845121624

92102161398322319315303286298393

422425427357

351352488438416359384

656638

1,0651,114735827853765861

1,6212,498

2,1842,2402,2232,066

1,8341,4451,6721,5481,9222,3362,3022,343

(2)

5,0444,7784,7763,5603,6453,9014,2854,9805,4938,223

11,798

12,84712,93713,19814,033

13, 69413,97614,18814,68915, 21015,56516,03116, 50216, 918

755652755540640984

1,0321,0121,0591,5272,018

1,7951,6101,7062,561

1,7281,9352,1272,0062,0122,3732,2432,3262,511

736822

1,3381,313836

1,001923953970

1,0911,378

1,3141,3521,4331,396

1,3991,3051,2101,1171,1741,2151,2591,323

(2)

p Preliminary.i Not shown separately on Reichsbank statement after June 15,1939.* Figure not yet available.NOTE.—For explanation of above table see BULLETIN for July 1935, p. 463, and February 1931, pp. 81-83

Central Bank(Figures as of last report

date of month)

Centra! Bank of the ArgentineRepublic (millions of pesos):

Gold reported separatelyOther gold and foreign exchangeNegotiable Government bonds.Rediscounted paperOther assetsNote circulationDeposits—Member bank __.

GovernmentOther

Foreign exchange sold forward..Other liabilities

Commonwealth Bank of Australia(thousands of pounds):

Issue department:Gold and English sterling....Securities

Banking department:Coin, bullion, and cashLondon balancesLoans and discountsSecuritiesDeposits

Note circulation _National Bank of Belgium (millions

of belgas):GoldForeign exchange.Credits to State and public bodiesCredits to private economyDue from Bank of Issue, BrusselsOther assets __Note circulationDemand depositsOther liabilities

National Bank of Bohemia and Mo-ravia (miHions of koruny):

GoldForeign exchangeDiscountsLoans

1941

Sept. Aug. July

1,069446365

2210

1,248545211

137

18, 95553, 859

3,63633, 64522, 30756, 676106, 20270, 364

1,0714153579

2281,26366964134

17, 70552, 614

4,10842,48922,17652, 111110, 48469,114

(Mar.)1

4,331543

2,186125373491

7,596296157

(June)'1,503788660

1940

Sept.

1,17018321816220

1,17536519021265

16, 08254, 305

5,56645, 68031, 25944,137119, 07561, 619

1,602892302407


date of month)

National Bank of Bohemia and Mo-ravia—Cont.

Other assetsNote circulationDemand depositsOther liabilities

Central Bank of Bolivia (thousandsof bolivianos):

Gold at home and abroadForeign exchangeLoans and discountsSecurities—Government

OtherOther assetsNote circulationDepositsOther liabilities

National Bank of Bulgaria (mil-lions of leva):

GoldNet foreign exchange in reserve. _Foreign exchangeLoans and discountsGovernment debtOther assetsNote circulationDepositsOther liabilities

Bank of Canada (thousands of Ca-nadian dollars):

Gold *Sterling and United States ex-

changeCanadian Gov't. securities:

2 years or lessOver 2 years

Other assets ___Note circulationDeposits—Chartered banks

Dominion Gov'tOther.

Other liabilities _

1941

Sept.

109, 295

516,422146, 282

19, 942435, 288207, 460124,610

6,36218, 219

Aug.

40, 617

519, 716141, 365

21, 284422, 230212,90260, 6579,965

17,227

July

(June)'(3)

7,1012,091(3)

(Apr.)i104, 95942, 607

224,182440, 344

(,513202, 454508, 348422,46392, 248

(May):2,006

405,807905

2,5933,6848,6103,5222,902

472

522, 302138,00614, 879

404, 674216, 26833, 3104,721

1940

Sept.

()5,976969(

99, 44572, 596

229, 345430, 38813, 64020, 671

441, 316340, 59484,176

2,0064

1,3282,3193,3732,4595,4293,0772,984

20, 336

412, 359120, 74243, 356331,957231,3364,4419,96119, 098

1 Latest month for which report is available for this institution.2 Less than 500,000 koruny.3 Figure not available.* On May 1,1940, gold transferred to Foreign Exchange Control Board in return for short-term government securities (see BULIETJN for July

1940, pp. 677-678).

NOVEMBER 1941 1199




date of month)

1941

Sept. Aug. July

1940

Sept.


date of month)

1941

Sept. Aug. July

1940

Sept.

Central Bank of Chile (millions ofpesos):

GoldDiscounts for member banksLoans to GovernmentOther loans and discountsOther assetsNote circulationDeposits-

BankOther

Other liabilitiesBank of the Republic of Colombia

(thousands of pesos):GoldForeign exchangeLoans and discountsGovernment loans and securities.Other assetsNote circulationDeposits TOther liabilities

National Bank of Denmark (mil-lions of kroner):

GoldForeign exchangeClearing accounts (net)DiscountsLoans—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 Egypt- (thou-sands of pounds):

Gold.__-Foreign exchangeLoans and discountsBritish, Egyptian, and other

Government securitiesOther assetsNote circulationD eposits—Government

OtherOther liabilities

Central Reserve Bank of El Salva-dor (thousands of colones):

GoldForeign exchangeLoans and discountsGovernment debt and securities.Other assetsNote circulationDepositsOther liabilities

Bank of Finland (millions ofmarkkaa):

GoldForeign assetsLoans and discountsDomestic securitiesOther assets __

29,7139,82338,15856, 40530, 72864, 68253, 54746, 597

14720973853097

1,222

19270237

30,5847,209

33, 50155, 02529, 51565, 08549, 80540, 944

1002967691627136787740843198

13, 2331,1101,2986,3081,69715, 5873,9474,111

14718373852299

1,199

18970231

31, 45213, 58726, 20055,14130, 23167,16949, 97539, 467

1003063481729142764736789198

(Apr.)165, 67415, 80559, 67823, 97676,98855, 66832, 476

(May) '6,2411,2723,086

75, 8176,537

41, 5736,453

35, 0129,913

13, 2381,4211,3596,3171,60615, 7833, 5724,587

(May)'556

1,1825,610414

2,212

14616874637531

1,022

168112165

26,38612, 59426, 25842, 95931, 53254, 92354,15130, 656

1179

3261468110159344695269183

56,96014, 84062, 78126,18573,32846, 61740, 821

6,241329

8,237

43, 851(3)()1,68618,9198,855

13,191692

2,5235,7261,39613, 5514,5855,392

Bank of Finland—Cont.Note circulation _DepositsOther liabilities

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):

GoldForeign exchange reserveDiscountsLoans—To Treasury

OtherOther assetsNote circulationDemand depositsConsolidated foreign credits of 1931Other liabilities

Reserve Bank of India (millions ofrupees):

Issue department:Gold at home and abroad....Sterling securitiesIndian Gov't. securitiesRupee coinNote circulation

Banking department:Notes of issue department.Balances abroadTreasury bills discounted.Loans to GovernmentInvestmentsOther assetsDepositsOther liabilities

Bank of Japan (millions of yen):C ash, bullion, andf oreign accountsSpecial foreign exchange funds...Advances—To Government

OthersGovernment bonds.Other assets -_Note circulationDeposits—Government

Other,.Other liabilities

Bank of Java (millions of guilders):GoldForeign billsLoans and discountsOther assetsNote circulationDepositsOther liabilities

Netherlands Bank (millions of guil-ders) :

GoldSilver (including subsidiary coin)Foreign billsDiscountsLoansOther assetsNote circulationDeposits—Government


5733002

5614.249487

4,566801323483

364199712424932035

1,0238

45297187257

1,779

(May)5,659

7963,520

(Mar.)18,46516, 5853,9473,589

19, 37120, 9082,306

12420

88780341

4671,773

25132

286

(June)444

1,188913366

2,769

142371

15457156

582300

2554

3,786578

4,072833406491

3271978

12923728035

1, 02312

39745

185274

1,705

18857

17356

4,95915,1904, 0493, 086

11,32613, 666

2, 292

12443

81550639

3181,357

172(4)31&

4441,315

496326

2, 292

290-344

9148212

632118-

()300-

3922

2,551(5)

3,556-714127350

205

m106«124204212

38

1,13214

231107

1,359

17253

1 Latest month for which report is available for this institution.2 Items for issue and banking departments consolidated.3 Figure not available.4 Included in ' 'Other liabilities".5 No comparable figure available; gold alone was reported at 501 million yen.e Includes bills discounted, no longer shown separately beginning Mar. 29, 1941.




Central bank(Figures as of last report

date of month)

Reserve Bank of New Zealand(thousands of pounds):

GoldSterling exchange reserve...Advances to State or State un-

dertakings _ _InvestmentsOther assetsNote circulationDemand deposits..Other liabilities

Bank of Norway (millions ofkroner):

Gold _ —Foreign assetsTotal domestic credits and

securitiesDiscountsLoans._ _ _ _ _ _ _ _ _Securities

Other assetsNote circulation _ .Demand deposits—Government.


Central Reserve Bank of Peru(thousands of soles):

Gold and foreign exchangeDiscounts __ __ .Government loansOther assets _ __ _Note circulationDeposits .Other liabilities

Bank of Portugal (millions ofescudos):

Gold 3Other reserves (net)Non-reserve exchangeLoans and discountsGovernment debtOther assetsNote circulationOther sight liabilitiesOther liabilities

National Bank of Rumania (mil-lions of lei):

Gold4

Special exchange accounts._ __ _Loans and discountsSpecial loans 5

Government debtOther assets._Note circulationDemand depositsOther liabilities

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

GoldForeign billsOther bills and loansOther assetsNote circulationDepositsOther liabilities

Bank of Sweden (millions ofkronor):

GoldForeign assets (net) .__ _Domestic loans and investments.Other assets _ _ _ _ _ _ ._Note circulationDemand deposits.. __ __Other liabilities

Sept.

1941

Aug.

2,80215,091

24, 3073,7731,661

22,11923, 0052,511

33, 67314, 76930, 846

5719,609

36, 71387,16326, 39512, 624

52, 926925

243 23127,17965 699

4,206

422861765878

1,495731699

July

2,80215, 583

24, 4083,7731,614

21, 77623, 9022,501

55,41824, 693

166, 6208,447

171 69662, 35621,127

1 2911 2621,552

3671,031

8053,3132,355

638

33, 60512, 69930,102

5799,608

31,16481, 86123, 57412, 323

52, 255836

1344, 47823, 80769, 3574,417

417858707898

1,440737702

1940

Sept.

2,8029,988

28, 0152,553

37920,10921, 2892,339

(Mar.) '186102

435

(2)

(2)

5999

112(2)

56, 70015, 018

129, 65111,316

134 92853,64424,114

923448151472

1,0331 6432 6841,009

978

31, 9305,083

25, 270798

8,97114,10262, 34213,09310, 719

38, 081745

435, 36722, 77146,663

4,764

335753709929

1,470361895

Central bank(Figures as of last report

date of month)

Swiss National Bank (millions offrancs):

Gold._ .Foreign exchangeLoans and DiscountsOther assetsNote circulationOther sight liabilitiesOther liabilities

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

GoldForeign exchange—Free

In clearing accountsLoans and discountsSecurities... _ _ _Other assets. _Note circulationDeposits—Gold


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

Issue department:Gold and silverNote circulation __

Banking department:GoldNotes and coinAdvances to State and to

government bodiesOther loans and discountsOther assetsDepositsOther liabilities.... _ _

Central Bank of Venezuela (thou-sands of bolivares):

GoldForeign exchange (net)._Credits to national banksOther assets.Note circulation—

Central BankNational banks .

DepositsOther liabilities

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

GoldForeign exchangeLoans and discounts-Government debtNational defense billsOther assetsNote circulationOther sight liabilitiesOther liabilities

Bank for International Settle-ments (thousands of Swiss goldfrancs6):

Gold in barsCash on hand and on current

account with banksSight funds at interestUndiscountable bills and accept-

ances (at cost)Time funds at interest. .Sundry bills and investmentsOther assetsDemand deposits (gold)Short-term deposits (various

currencies):Central banks for own ac-

count _Other

Long-term deposits: Special ac-counts

Other liabilities _ __

1941

Sept.

124 30431,16338, 9979 546

84 89277,10733 1948,816

Aug.

2,2731,268

132216

2,1061,510

274

124 30435, 78938, 9978 160

83 28981, 46434 5097,988

28 281

39, 07216 411

140, 89121,008

220, 54354

22, 951

17, 8554,114

229, 001192,336

July

2 3051,262

109227

2,1141,514

275

119 258

44 986444 128190,85336 302

517 06679, 358

101 230137 872

86 235109, 857

82, 84124 974

40 40287 015

107,697124 215218,713

123 80531,14838, 000

7 567

79 38585, 97827 720

7,437

(Feb.)i2,790

9091,6863,0617,1283,465

13 9733, 5101 555

28 281

36, 86216 310

142,11322, 307

220, 64352

22, 981

17, 9634,780

229, 001191, 841

1940

Sept.

2 119627320270

2 110956270

108 53839

18 538321 257195, 07635 172

368 43878, 25097 016

134? 916

86 23593, 604

50, 68346 069

41 22593 30565?, 02299 412

196 892

2 380518

1 6323,0735 1552,913

12 4032, 464

805

26 604

31, 67414 943

145,31821,415

216,2152 381

14, 724

20, 9292,804

229, 001191,092

1 Latest month for which report is available for this institution.2 Figure not available.3 On Oct. 16, 1940, gold revalued on basis of average cost.* Gold revalued Apr. 1, 1941, at 0.0047 gram fine gold per leu.5 Agricultural and urban loans in process of liquidation.6 See BULLETIN for December 1936, p. 1025.

NOVEMBER 1941 1201


MONEY RATES IN FOREIGN COUNTRIESDISCOUNT RATES OF CENTRAL BANKS

[Per cent per annum]

Date effective

In effect Oct. 2,1936...

Oct 9Oct 16Oct 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. 26Dec 15Jan. 25, 1940Apr. 9May 17Mar. 17, 1941May 29June 27In effect Oct. 31,

1941....

Central bank of—

UnitedKing-dom

2

4

32

2

France

3

2

46543H3

2M3

2

1H

I K

Ger-many

4

3H

Bel-gium

2

4

3

2H

432H

2

2

Neth-er-

lands

3

2y2

2

3

2H

Swe-den

3

vy23

3

Switz-er-

land

2

Centralbank of—

AlbaniaArgentinaBelgiumBohemia and

Moravia

BoliviaBritish India.BulgariaCanadaChile . .Colombia

DenmarkEcuadorEl Salvador..EstoniaFinland.

FranceGermany.. __GreeceHungaryItaly

RateOct.31

2 2

635

3-4>|

473

4 2

5 2

3

Dateeffective

Mar. 21,1940Mar. 1,1936Jan. 25,1940

Oct. 1, 1940

Nov. 8,1940Nov. 28,1935Dec. 1, 1940Mar. 11,1935Dec. 16, 1936July 18,1933

Oct. 16,1940May 26,1938Mar. 30,1939Oct. 1,1935Dec. 3,1934

Mar. 17, 1941Apr. 9,1940July 14,1941Oct. 22,1940May 18,1936

Centralbank of—

JapanJavaLatviaLithuania..Mexico

NetherlandsNew Zea-

landNorwayPeruPortugal

RumaniaSouth AfricaSpainSwedenSwitzerland.

TurkeyUnited King-

domU. S. S. R . . .Yugoslavia .

RateOct.31

3.293564

i M

54

3343

4

245

Dateeffective

Apr. 7,1936Jan. 14,1937Feb. 17,1940July 15,1939Jan. 2,1941

June 27, 1941

July 26, 1941May 13, 1940Aug. 1, 1940Mar. 31, 1941

Sept. 12,1940June 2,1941

i Mar. 29,1939May 29,1941Nov. 26,1936

July 1,1938

Oct. 26,1939July 1,1936Feb. 1,1935

i Not officially confirmed.NOTE.—Changes since Sept. 30: none.

OPEN MARKET RATES[Per cent per annum]

Month

1929—Aug..1930—Aug..1931—Aug..1932—Aug..1933—Aug..1934—Aug..1935—Aug.1936—Aug..1937—Aug.1938—Aug..1939—Aug..1940—Aug..

1940—Sept.Oct..Nov.Dec.

1941—Jan..Feb..Mar.Apr..MayJune.July.Aug.

United Kingdom

Bankers'acceptances

3 months

5.472.214.28.74.41.79.60.55.55.53

1.581.03

1.031.031.031.03

1.031.031.031.031.031.031.031.03

Treasury1 bills3 months

5.482.174.21.60.30.74.58.53.52.51

1.921.02

1.03.02.02.01

.01

.02

.01

.01

.00

.00

.001.00

Day-to-daymoney

4.351.853.59.73.62.81.75.75.75.75

1.351.00

1.001.001.001.00

1.001.001.001.001.001.001.001.00

Bankers'allowance

on deposits

Germany

Privatediscount

rate

7.183.24

i 8.924.503.873.753.002.882.882.882.752.31

2.252.252.252.25

2.252.252.252.252.252.132.13

Day-to-daymoney

7.423.73

i 9.155.824.944.723.063.012.852.512.501.77

2.031.871.931.95

1.731.681.831.67

Netherlands

Privatediscount

rate

5.061.831.30.37

1.11.75

4.781.29.13.13

1.03

2.252.252.252.25

2.252.252.072.061.931.881.88

Moneyfor

1 month

4.681.631.221.001.081.004.721.20.53.50

1.533.00

2.682.752.752.75

2.752.752.752.752.362.252.25

Sweden

Loansup to 3months

4-64-63-53

Yry23-1-52H-52H-52^-5

3-5^3-5H3-5H3-534

Switzer-land

Privatediscount

rate

3.331.751.981.501.501.502.472.251.001.001.001.50

1.501.311.251.25

1.251.251.251.251.251.251.251.25

1 Based on data for part of month only2 No figures available. 'NOTE.—For figures for other countries and references to explanation of tables see BULLETIN for Septembar 1940, p. 1018.



COMMERCIAL BANKSUnited Kingdom *

(Figures In millions ofpounds sterling)

Assets

Cashreserves

Money atcall and

shortnotice

Bills dis-counted

Treasurydeposit

receipts JSecuri-

tiesLoans tocustom-

ersOtherassets

Liabilities

Deposits

Total Demand » Time »Other

liabilities

10 London clearing banks

1932—December.1933—December.1934—December.1935—December.1936—December.

1936—December.1937—December..1938—December..1939—December.

1940—September.OctoberNovember.Deeember.

1941—January _._.February..MarchAprilMayJuneJulyAugust .__

207213216221236

127119151159187

408311255322316

472565594605630

778740759784

208237247231

1,9831,9411,9712,0912,238

9911,0151,0441,140(4)

963900910924

11 London clearing banks 5

244244243274

270285324

279284

293311306316

195163160174

144137140159

131128132137128143139140

322300250334

401373339265

269210194188173193275266

92180236314

341330374461469482476469

660635635609

697723743771

789814821820848880902935

890984971

1,015

948948941924

926915922897889874866850

249256263290

287284274293

269272276274273311267264

2,3152,3302,2542,441

2,5972,6612,7022,800

2,7572,7092,7642,8292,8242,9462,9912,997 :

1,2881,2841,256,398

,570L, 635,671L, 770

L, 729L, 696L, 728L, 769,789,870L, 898,909

1,0121,026997

1,043

1,0271,0261,0311,030

1,0271,0131,0361,0601,0351,0751,0931,088

216244251231232

245252269256

260254256250

247243242247249248240242

Canada

(10 chartered banks. End of monthfigures in millions of Canadian dollars)

Assets

Entirely in Canada

Cashreserves

Securityloans

Otherloans

and dis-counts

Securityloans

abroadand net

duefrom

foreignbanks

Securi-ties

Otherassets

Liabilities

Notecircula-

tion

Deposits payable in Can-ada excluding interbank

deposits

Total Demand Time

Otherliabili-

ties

1932— December...1933—December..1934—December...1935—December...1936—December..1937—December...1938—December...1939—December...

1940—September..OctoberNovember..December..

1941—January...February..MarchAprilMayJuneJulyAugust

211197228228240255263292

319310313323

312293296325321288314299

10310610383114766553

37414140

3634353129333435

1,1041,036977945791862940

1,088

1,1021,1381,1281,108

1,0921,1041,1151,1091,1321,2921,2791,255

155134155141161102166132

178177174159

164170178189183191188190

778861967

1,1551,3841,4111,4631,646

1,5631,5201,5131,531

1,6771,7881,7661,8201,8121,6881,6811,698

500482491529554575535612

529526514570

522531621544537575559553

115121124111103

85

1,9161,9202,0352,1802,3032,3352,5002,774

2,8002,7782,7582,805

2,873

2,9723,0643,0453,0753,0683,031

538563628694755752• 8401,033

1,1451,1781,1321,163

1,2051,3021,2701,3561,3501,6081,5791,509

821775761789837850843963

841845837846

851850858877889913907919

France

(4 large banks. End of month figuresin millions of francs)

Assets

Cashreserves

Due frombanks

Bills dis-counted Loans Other

Liabilities

Deposits

Total Demand Time

Ownaccept-ances

Otherliabilities

1932—December.1933—December.1934—December.1935—December1936—December.1937—December.1938—December.1939—December

1940—January...February.March«.. .

9,0075,8705,8363,7393,1003,4033,7564,599

4,0664,2934,110

1,7661,4161,4212,4842,9754,1164,0603,765

4,0803,9933,920

22,01419, 84818, 30416,14117,58218, 24921, 43529, 546

29, 80830,81034,123

7,8508,3098,1598,0257,6317,6247,5927,546

7,7567,5797,499

1,7491,8271,7171,9001,9572,1341,9402,440

1,7451,8491,961

37,75932, 63530,94327, 55328,48430,34833, 57842,443

42,85043, 73746, 608

36, 49131,77330,039

27,95529, 74833,04241,872

42,30243,19546,064

862904694529600537571

548542544

295273193337473661721844

9381,0341,105

4,3314,3624,3014,3994,2894,5174,4844,609

3,6673,7533,901

1 Through August 1939, averages of weekly figures; beginning September 1939, end-of-month figures, representing aggregates of figures reportedby individual banks for days, varying from bank to bank, toward the end of the month.

2 Represents six-month loans to the Treasury at 1% per cent, callable by the banks in emergency under discount at the bank rate.3 Through December 1937, excludes deposits in offices outside England and Wales which are included in total.4 Beginning 1936, figures on this basis available only for all 11 banks—see footnote 5.& District Bank included beginning in 1936.6 No figures available since March 1940.NOTE.—For other back figures and explanation of tables, and for figures for German commercial banks, see BULLETIN for August 1939, p. 699;

June 1935, pp. 388-390; and October 1933, pp. 641-646.NOVEMBER 1941 1203


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

1934193519361937193819391940

1940—OctN o vDec

1941—JanF e bMarApr.MayJuneJulyAugSept

Year or month

1934 _1935193619371938.. .19391940

1940—Oct.NovDec.

1941—jan

FebMar.Apr.MayJuneJulyAugSept

Year or month

19341935.. _19361937193819391940

1940_Oct.NovDec

1941—JanFeb.Mar.Apr.MayJuneJulyAugSept.

Argentina(peso)

Official

33. 57932 65933 13732. 95932 59730. 85029 773

29 77329,77329 773

29 77329 77329. 77329. 77329 77329.77329 77329 77329. 773

Colom-bia

(peso)

61. 78056.01157. 08356. 72655. 95357.06157. 085

56. 98557 00057.132

57 14656 98756. 98557. 01157 02256 98256 98156 98256. 982

Norway(krone)

25 31624. 62724 97424. 84024 56623. 22622. 709

SpecialExport

23. 70423. 70423 70423. 70423 70423 70423. 704

Czecho-slovakia(koruna)

4. 24244.16424. 00783. 49303. 46743. 4252

Poland(zloty)

18. 84618. 88218. 87518. 92318. 86018. 835

Australia(pound)

Official

322.80

322. 80322. 80322. 80

322 80322.80322. 80322. 80322. 80322. 80322 80322. 80322. 80

Den-mark

(krone)

22. 50021. 88322.18922.06921. 82520. 34619. 308

Portu-gal(es-

cudo)

4. 60894. 45754. 51304. 47924. 42674. 03753.7110

3.98413 98493. 9915

3. 99864. 00694. 00394. 00094 00174. 0026

Free

400. 95388 86395. 94393.91389. 55353. 38305.16

321. 29321. 57321. 50

321 50321.11321. 30320. 70321.19321. 25321 31321. 28321. 33

Fin-land

(mark-ka)

2. 22772.16272.19032.18112. 15671.99481. 8710

1.96521 94821. 9472

2 01042 01012. 01002. 01002 01002 0098

Ruma-nia

(leu)

1.0006.9277.7382.7294.7325.7111.6896

Bel-gium

(belga)

23. 28718 42416.91716. 87616. 89416. 85216. 880

France(franc)

6. 56886.60136.11414.04602. 87812. 51032. 0827

SouthAfrica

(pound)

498. 29484. 66491. 65489. 62484.16440.17397. 99

398.00398. 00398.00

398. 00398.00398. 00398.00398. 00398. 00398 00398. 00398. 00

Brazil (milreis)

Official

8. 42688.29478.56818.64375.84386.00276. 0562

6. 05756.05756. 0575

6. 05756.05756.05756.05756. 05756. 05756.05756. 05756. 0575

Ger-many

(reichs-mark)

39. 37540. 25840. 29740. 20440.16440. 06140. 021

39.97539.98339. 982

39 97939.96939. 96039. 96239. 96839 970

Spain( peseta)

13.61513. 67812.3146.0535.600

10:6309.322

9.1309.1319.132

9.1309.1309.1309.1309.1309.130

Free

5. 87886.1983

5.12485. 0214

5. 01535. 01565. 0169

5 05605.06045. 05995.06005. 06005. 05985 06165. 06465. 0616

Greece(drach-ma)

.9402

.9386

.9289

.9055

.8958

.8153

.6715

.6602

StraitsSettle-ments(dollar)

59. 00557.17358. 25857. 97356. 91751.73646. 979

47.10147.10047.100

47.08947. 09447.10647.10747.10747.13847 16047.16047.160

BritishIndia(rupee)

37.87936 96437. 52337. 32636. 59233. 27930.155

30.17030.16630.178

30 14830.14030.13930.12930. 12930.12930 12830.13030.137

HongEong

(dollar)

38. 71648. 21731.71130. 69430. 45727. 45422. 958

23. 07723. 39623. 585

23 64824.14224. 42124. 39324 28524 37224 52425.11025.099

Swe-den

(krona)

25. 98225. 27125. 62625. 48725.19723. 99123. 802

23.81423. 81823.824

23.82623.82923. 82423. 82523.83923.836

Bul-garia(lev)

1.28521. 29511. 29581. 28461. 24241.2111

Hun-gary

(pengo)

29. 57529. 60229. 55819. 77919. 72719. 23818. 475

19. 36419. 50519.770

19 77019.77019. 770

Switz-erland(franc)

32. 36632. 49730.18922. 93822. 87122. 52522. 676

23.14823. 20223 201

23 22023. 21723. 21023. 20123. 20323. 206

Canada

Official

90. 909

90. 90990. 90990. 909

90. 90990. 90990. 90990. 90990.90990. 90990 90990. 90990. 909

Italy(lira)

8. 56178.24717. 29165. 26075. 26055.19595. 0407

5. 03895. 03965. 0439

5 04325. 04225. 04525. 04755 08055 2621

(dollar)

Free

101. 00699. 49399. 913

100.00499. 41996.01885.141

86. 31886. 92286. 563

84.80183. 68784. 98187. 65187. 42188.18388. 27188.96189.134

Japan(yen)

29. 71528. 70729. 02228. 79128. 45125. 96323. 436

23.43923. 43923. 439

23 43923. 43923. 43923. 43923. 43923 43923.439

United Kingdom(pound)

Official

403.50

403. 50403. 50403 50

403 50403. 50403. 50403. 50403. 50403. 50403. 50403.50403. 50

Free

503. 93490.18497. 09494. 40488.94443. 54383.00

403. 26403. 56403 50

403 42402. 97403.19402. 48403.10403 16403. 23403.18403. 27

Chile

Official

10.14525.08335.12405.16975.17165.17275.1668

5.16805.16635.1665

5.16745.16635.16605.16605.1660

Mexico(peso)

27. 74227. 77827. 76027. 75022.12219. 30318. 546

20. 33120. 40020. 448

20 50420. 52420. 52920. 53820 53720 53320 54220. 53820. 542

(peso)

Export

4.00004. 00004.00004. 0000

4. 00004.00004. 0000

4. 00004. 00004. 00004.00004. 0000

Nether,lands

(guilder)

67.38367. 71564. 48155. 04555.00953.33553.128

Uruguay(peso)

Con-trolled

79 95680. 25179.87479. 07264 37062. 01165. 830

65. 83065. 83065 830

65 83065 83065.83065. 83065. 83065 83065. 83065. 83065. 830

Non-con-trolled

36. 78937.601

37.62938. 99439 480

39 49139 64939. 56640. 06541.16142 70643. 78943. 74543. 836

China(yuanShang-hai)

34.09436. 57129.75129. 60621. 36011. 8796.000

5 68258455.690

5.3915.4245.3585.1905.2555.3365.243

NewZealand(pound)

402. 46391. 26398. 92396. 91392. 35354.82306. 38

322. 55322.82322. 75

322.75322. 36322. 55321. 96322.45322. 51322. 57322. 54322. 60

Yuge-slavia(dinar)

2.27192. 28372 29652. 30602 31152. 27162. 2463

2. 24362. 24092 2407

2 2397

NOTE.—Developments affecting averages during 1941:Special export rate for Argentina first reported in addition to official rate on Mar. 27; nominal.No rates certified: Yugoslavia—since Jan. 28; Hungary—since Mar. 12; Chile—since May 21; Finland, Germany, Italy, Portugal,

Spain, Sweden, and Switzerland—since June 14; China and Japan—since July 25.Changes in nominal status (noted only if affecting quotations for at least five days a month): none.

For further information concerning the bases and nominal status of exchange quotations, and concerning suspensions of quotations prior to1941, see BULLETIN for February 1941, p. 183; February 1940, p. 178; September 1939, p. 831; March 1939, p. 236; and March 1938, p. 244.



PRICE MOVEMENTS IN PRINCIPAL COUNTRIESWHOLESALE PRICES—ALL COMMODITIES

[Index numbers]

Year or month

1326

19301931 „19321933. .193419351936193719381939-1940

1940—September-October.,NovemberDecember..

1341—JanuaryFebruaryMarchAprilM a y .JuneJulyAugustSeptember. _

UnitedStates

(1926=100)

100

867365667580

i-H

CO

O

"

oooot^

7779

78798080

818182838587899092

Canada

(1926=100)

100

8772676772727585797583

83838484

8585868789909192

UnitedKingdom

(1930=100)

1124

100888686888994

109101103137

141143147149

150150151151151152153153154

France

(1913=100)

695

554500427398376338411581653

2 681

Germany

(1913=100)

134

125111979398

102104106106107110

111111111111

111112112112112

P112P112

Italy

(1928=100)

857570636268768995

3 97

Japan(October

1900=100)

237

181153161180178186198238251278311

308310310312

313317322324326331329330330

Nether-lands

(1926-30=100)

106

90766563636264767274

<88

Sweden

(1935=100)

i 126

i 103i 94192190196100102114111115146

148154158159

162165169170171173173174

Switzer-land

(July 1914=100)

144

1261109691909096

111107111143

152156161164

167168170175181184188

P189

p Preliminary.1 Approximate figure, derived from old index (1913=100).2 Average based on figures for 8 months; no data available since August 1939, when figure was 674.3 Average based on figures for 7 months; no data available since July 1939, when figure was 96.4 Average based on figures for 5 months; no data available since May 1940, when figure was 89.Sources.—See BULLETIN for January 1941, p . 84; April 1937, p . 372; March 1937, p . 276; and October 1935, p . 678.

WHOLESALE PRICES—GROUPS OF COMMODITIES

[Indexes for groups included in total index above]

Year or month

1926

1930 _193119321933193419351936 .1937193819391940... _

1940—SeptemberOctoberNovemberDecember

1941 JanuarvFebruaryMarchAprilM a yJuneJulyAugustSeptember

United States(1926=100)

Farmproducts

100

8865485165798186696568

66666870

727072747682868791

Foods

100

9175616171848286747071

72717374

747475788083858790

Othercommod-

ities

100

8575707178788085828183

82848484

848485868789909192

United Kingdom(1930=100)

Foods

100898883858792

1029797

133

140143143145

145144144144144145146146147

Indus-trial

products

100878587909096

112104106138

142142149150

152153154154155156157157

France(1913=100)

Farmand foodproducts

581

526542482420393327426562641

i 653

Indus-trial

products

793

579464380380361348397598663

i 707

Germany(1913=100)

Agricul-tural

products

129

113104

918796

102105105106108111

111110111111

111111111112113114

P114P114

Provi-sions

132

1139686757684869691

193

Indus-trial rawand semi-finishedproducts

130

120103898891929496949599

999999

100

100100100100100100

P100P I O O

Indus-trial fin-

ishedproducts

l£0

150136118113116119121125126126129

131131131131

132133133133132132

P132P132

p Preliminary.1 Average based on figures for 8 months.2 No data available since August 1939, when figures were 616 and 726 respectively for France, and 92 for Germany.

Sources.—See BULLETIN for March 1935, p. 180, and March 1931, p. 159.

NOVEMBER 1941 1205


Price Movements—Continued

RETAIL FOOD PRICES[Index numbers]

Year ormonth

19321933 __1934193519361937193819391940

1940-SeptemberOctoberNovemberDecember

1941-January...February _MarchAprilMayJ u n e . . . ._JulyAugustSeptember

UnitedStates

(1935-39=100)

878494

100101105989597

97969697

989898

101102106107108

UnitedKing-dom

(Julyl914=100)

126120122125130139141141164

166169172173

172171169170171170167167166

France(Julyl914

=100)

536491481423470601702

a 742

Ger-many

(1913-14=100)

116113118120122122122123128

130127126127

127127128129

Nether-lands

(1911-13=100)

119120124118120127130130

4140

Switz-erland

(Junel914=100)

125117115114120130130132146

149152157158

160160161167172178179166

COST OF LIVING[Index numbers]

Year ormonth

193219331934 ._19351936 . .1937193819391940

1940-SeptemberOctober _NovemberDecember

1941-January __FebruaryMarchAprilMayJuneJulyAugustSeptember

UnitedStates

(1935-39=100)

9892969899

10310199

100

100100100101

101101101102103105105106

UnitedKing-dom

(Julyl914= 100)

144140141143147154156158184

187189192195

196197197198200200199199199

France(1930

=100)

9187837886

102117

3 122

Ger-many

(1913-14=100)

121118121123125125126126130

132130130131

132132132132

Nether-lands

(1911-13=100)

141139140136

U32137139140

6148

Switz-erland

(Junel914=100)

138131129128130137137138151

153157159160

163163164169171175177

1 Revised index from March 1936 (see BULLETIN for April 1937, p. 373).2 Average based on figures for 8 months; no data available since August 1939, when figure was 749.* Average based on two quarterly quotations; no data available since May 1939, when figure was 123.4 Average based on figures for 3 months; no data available since March 1940, when figure was 141.6 Average based on figures for 5 months; no data available since May 1940, when figure was 149.Sources.—See BULLETIN for October 1939, p. 943, and April 1937, p. 373.

SECURITY PRICES

[Index numbers except as otherwise specified]

Year or month

Number of issues. _

1926

19321933193419351936.19371938 . .19391940

1940—September. _OctoberNovember...December...

1941—JanuaryFebruaryMarchAprilMayJuneJuly. . .AugustSeptember _.

Bonds

UnitedStates

(derivedprice) i

10

90.1

84.491.298.2

105.5109.5

i 110.2111.1113.8115.9

116.5117.2118.0117.7

117.7116.7116.9116.8117.0117.7118.7118.5118.1

UnitedKingdom(December1921=100)

87

110.0

113.2119.7127.5129.9131.2124.6121.3112.3118.3

117.9119.2119.9121.0

122.2121.9122.5121. 7122.7122.9124.7124.5

France(1913=100)

36

57.4

88.681.382.183.576.375.177.383.984.7

100.598.4

Germany(average

price)2

2 139

5 67.182.590.7

6 95.195.898.799.999.0

100.7

101.0101.7101.9101.4

102.2102.8102.8103.0103.2

Nether-lands 3

8

94.8105.3113.4107.8109.1

3 101. 8105.990.9

7 77.9

80.780.079.8

80.174.373.278.582.1

Common stocks

UnitedStates

(1935-39= 100)

402

105.6

51.267.076.682.9

117.5117.588.294.288.1

85.586.086.784.9

85.080.180.377.977.179.583.283.283.6

(1926=100)

UnitedKingdom

278

100.0

67.978.685.786.397.096.380.875.970.8

66.268.170.270.2

71.870.569.969.770.470.772.573.8

France

300

100.0

105.299.683.379.777.297.489.798.3

228.3269.5274.6

Germany

4

100.0

550.361.771.182.991.6

102.6100.194.1

114.6

120.8125.1127.7128.0

131.5133.0131.1131.0133.2

Nether-lands

(1930=100)

100

4652555560

104.295.889.7

8 95.0

94.3104.1112.7116.1

120.0113.4115.1126.5121.6

1 Figures represent calculated prices of a 4 per cent, 20-year bond offering a yield equal to the monthly average yield for 10 high-grade corporatebonds for the series beginning 1937 and for a varying number of high-grade bonds for the series prior to that date. The yearly average for 1937is the same for both series. Source: Standard and Poor's Corporation.

2 Since April 1, 1935, the 139 bonds included in the calculation of the average price have all borne interest at ±y2 per cent. The series prior tothat date is not comparable to the present series, principally because the 169 bonds then included in the calculation bore interest at 6 per cent.

3 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 indexbeginning Jan. 1937, Jan.-Mar. 1937=100; average yield in base period was 3.39 per cent.

4 This number, originally 329, has declined as the number of securities eligible for inclusion in the index has diminished. In May 1941, it wasdown to 287.

5 Average May-Dec, only; exchange closed Jan. 1-Apr. 11.6 Average Apr.-Dec. only—see note 2. Average Jan.-Mar. on old basis was 95.9.7 Average based on figure s for 7 months; no data available May-September.8 Average based on figures for 9 months; no data available May-July.Sources.—See BULLETIN for November 1937, p. 1172; July 1937, p. 698; April 1937, p. 373; June 1935, p. 394; and February 1932, p. 121.

1206 FEDERAL RESERVE B U L L E T I N


BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

M. S. SZYMCZAK

MARRINER S. ECCLES, ChairmanRONALD RANSOM, Vice Chairman

JOHN K. MCKEE ERNEST G. DRAPER

LAWRENCE CLAYTON, Assistant to the ChairmanELLIOTT THURSTON, Special Assistant to the ChairmanCHESTER MORRILL, Secretary

LISTON P. BETHEA, Assistant SecretaryS. R. CARPENTER, Assistant SecretaryFRED A. NELSON, Assistant Secretary

WALTER WYATT, General CounselJ. P. DREIBELBIS, Assistant General CounselGEORGE B. VEST, Assistant General CounselB. MAGRUDER WINGFIELD, Assistant General Counsel

E. A. GOLDENWEISER, Director, Division of Research and StatisticsWOODLIEF THOMAS, Assistant Director, Division of Research and Statistics

LEO H. PAULGER, Chief, Division of ExaminationsR. F. LEONARD, Assistant Chief, Division of ExaminationsC. E. CAGLE, Assistant Chief, Division of Examinations

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

0. E. FOULK, Fiscal AgentJOSEPHINE E. LALLY, Deputy Fiscal Agent

FEDERAL OPEN MARKET COMMITTEE

MARRINER S. ECCLES, Chairman

ALLAN SPROUL, Vice ChairmanCHESTER C. DAVIS

ERNEST G. DRAPER

M. J. FLEMING

HUGH LEACH

JOHN K. MCKEE

JOHN N. PEYTON

RONALD RANSOM

M. S. SZYMCZAK

CHESTER MORRILL, SecretaryS. R. CARPENTER, Assistant SecretaryWALTER WYATT, General CounselJ. P. DREIBELBIS, Assistant General CounselE. A. GOLDENWEISER, Economist

JOHN H. WILLIAMS, Associate EconomistROBERT G. ROUSE, Manager of System Open Market

Account

FEDERAL ADVISORY COUNCIL

Boston District CHAS. E. SPENCER, JR.

New York District

Philadelphia District

Cleveland District

Richmond District

Atlanta District

Chicago District

St. Louis District

Minneapolis District

Kansas City District

Dallas District

San Francisco District

GEORGE L. HARRISONVice President

WILLIAM F. KURTZ

B. G. HUNTINGTON

ROBERT M. HANES

RYBURN G. CLAY

EDWARD E. BROWNPresident

S. E. RAGLAND

LYMAN E. WAKEFIELD

W. DALE CLARK

R. E. HARDING

PAUL S. DICK

WALTER LICHTENSTEIN, Secretary

NOVEMBER 1941 1207


CHAIRMEN, DEPUTY CHAIRMEN, AND SENIOR OFFICERS OF FEDERAL RESERVE BANKS

FederalReserveBank of

Boston

New York

Philadelphia..

Cleveland....

Richmond....

Atlanta

Chicago

St. Louis

Minneapolis. .

Kansas City..

Dallas

San Francisco

Chairman andFederal Reserve

Agent

Frederic H. Curtiss.

Beardsley Ruml. . . .

Thomas B. McCabe

Geo. C. Brainard. . .

Robt. Lassiter

Frank H. Neely.. . .

F.J.Lewis

Wm. T. Nardin

W. C. Coffey

R. B. Caldwell

J. H. Merritt

R. C. Force

Deputy Chairman

Henry S. Dennison.

Edmund E. Day

Warren F. Whittier.

R. E. Klages

W. G. Wysor

J. F. Porter

Clifford V. Gregory.

Oscar Johnston

Roger B. Shepard. .

J. J. Thomas

Jay Taylor

St. George Holden..

President

R. A. Young

Allan Sproul

Alfred H. Williams

M. J. Fleming

Hugh Leach

W. S. McLarin, Jr..

C. S. Young

Chester C. Davis..

J. N. Peyton

H. G. Leedy

R. R. Gilbert

Wm. A. Day

First Vice President

W. W. Paddock...

L. R. Rounds

Frank J. Drinnen..

F. J. Zurlinden

J. S. Walden, Jr.. .

Malcolm H. Bryan

H. P. Preston

F. GuyHitt

0. S. Powell

Henry 0. Koppang

E. B. Stroud

Ira Clerk

Vice Presidents

William Willett *

R. M. Gidney

Walter S. LoganJ. M. RiceRobert G. RouseJohn H. Williams

W. J. DavisE. C. HillC. A. Mcllhenny 2

C. A. Sienkiewicz

Wm. H. FletcherR. B. HaysW. F. Taylor 2

G. H. Wagner

J. G. Fry

R. W. Mercer

H. F. ConniffL. M. Clark

J. H. DillardA. J. Mulroney

0. M. AtteberyC. M. Stewart1

E. W. SwansonHarry I. Ziemer 2

J. W. Helm 2

D. W. Woolley

R. B. ColemanWT T TP-f7-o-no

W. 0. Ford l

C. E. Earhart1

WT 1\/T TTolo

R. B. West1 Cashier. 2 Also cashier.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS

Federal Reserve Bank of—

New York:Buffalo Branch

Cleveland:Cincinnati BranchPittsburgh Branch

Richmond:Baltimore BranchCharlotte Branch

Atlanta:Birmingham BranchJacksonville BranchNashville BranchNew 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. BeaversGeo. S. Vardeman, Jr.Joel B. Fort, Jr.E. P. Paris

H. J. Chalfont

A. F. BaileyC. A. SchachtW. 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 BranchPortland BranchSalt Lake City BranchSeattle Branch

Managing Director

R. E. Towle

Jos. E. OlsonG. H. PipkinL. H. Earhart

J. L. HermannW. D. GentryM. Crump

W. N. AmbroseD. L. DavisW. L. PartnerC. R. Shaw



Publication*

Copies of the publications and releases listed below may be obtained from the Board of Governors of theFederal Reserve System, Washington, D. C.

CURRENT RELEASES

DAILY

Foreign Exchange Rates (for previous day).

WEEKLY

Monday:Condition of Reporting Member Banks in Lead-

ing Cities.Bank Debits—Debits to Deposit Accounts, except

Inter-Bank Accounts.Tuesday:

Money Rates—Open-Market Rates in New YorkCity. (Also monthly.)

Thursday:Condition of the Federal Reserve Banks.Condition of Reporting Member Banks in Central

Reserve Cities. (Also included in statementof Condition of Reporting Member Banks inLeading Cities, released on following Monday.)

Department Store Sales—Index for United Statesand Percentage Changes by Federal ReserveDistricts.

MONTHLY

Federal Reserve Bulletin. Released about the 10thof the month. The subscription price is $2.00 perannum, or 20 cents per single copy, in the UnitedStates (including insular possessions), Canada,Chile, Colombia, Costa Rica, Cuba, DominicanRepublic, Ecuador, Guatemala, Haiti, Republicof Honduras, Mexico, Newfoundland (includ-ing Labrador), Nicaragua, Panama, Paraguay,Peru, El Salvador, Uruguay, and Venezuela.In all other countries the subscription price is$2.60 yearly, or 25 cents per single copy. Groupsubscriptions for 10 or more copies, in the UnitedStates, 15 cents per copy per month, or $1.50 for12 months.

Brokers' Balances. Released about the 20th of themonth.

National Summary of Business Conditions. Re-leased about the 18th of the month.

Business Indexes. Released about the 18th of themonth.

Bank Debits—Debits to Deposit Accounts, exceptInter-Bank Accounts. Released between the 6thand 12th of the month.

Foreign Exchange Rates. Released about the 1stof the month.

Department Store Sales—Percentage Changes byFederal Reserve Districts and by Cities. Re-leased about the 22nd of the month.

Department Store Sales—Percentage Changes byDepartments. Released about the end of themonth.

Released about two

QUARTERLY

Member Bank Call Report.months after call date.

SEMI-ANNUALLY

Federal Reserve "Par List" (Banks upon whichchecks will be received by Federal Reserve Banksfor collection and credit). Released in Januaryand July, with monthly supplements about the7th of the month.

ANNUALLY

List of Stocks Registered on National SecuritiesExchanges. Supplements issued quarterly. 25cents for list and supplements.

Bank Debits—Debits to Deposit Accounts, exceptInter-Bank Accounts. Released ordinarily inFebruary.

Annual Report, covering operations for the pre-ceding calendar year.

BOOKS

The Federal Reserve System—Its Purposes andFunctions. Obtainable in cloth cover at 50 centsper copy; in paper cover without charge. 128 pages.

Digest of Rulings—to October 1, 1937. Digestsof Board rulings, opinions of the Attorney Generaland court decisions construing the Federal ReserveAct, with compilation showing textual changes inthe Act. $1.25 per copy. 683 pages.

Chart Book I, Federal Reserve Charts on BankCredit, Money Rates, and Business. New edition,revised September 1941. 73 pages. Space for plot-

ting through 1942. 50 cents per single copy; inquantities of 10 or more, 45 cents per copy.

Chart Book II, Federal Reserve Charts on In-dustrial Production. October 1940. 224 pages.Space for plotting through 1946. $1 per single copy;in quantities of 10 or more, 85 cents per copy.

Banking Studies—Comprising 17 papers on bank-ing and monetary subjects by members of the Board'sstaff. August 1941. 496 pages. $1.50 per singlecopy; in quantities of 10 or more, 75 cents per copy.

NOVEMBER 1941 1209


Federal Reserve Publications

REPRINTS

(From Federal Reserve BULLETIN except as stated otherwise. Partial list.)

Constitutionality of Legislation Providing a UnifiedCommercial Banking System for the United States.Opinion of the Board's General Counsel. 21 pages.March 1933.

Supply and Use of Member Bank Reserve Funds.Explanation of analysis of sources of member bankreserve funds and uses to which such funds are put.31 pages. July 1935.

Member Bank Statistics. A discussion of the sta-tistics compiled and published by the Board coveringthe operations and conditions of member banks. 28pages. November 1935.

Summary of Provisions of State Laws Relating toBank Reserves. 33 pages. March 1937.

Analyses of the Banking Structure—As of Decem-ber 31, 1935. Number, deposits, and loans and in-vestments of banks classified by size of bank andtown and by other factors. 33 pages. August 1937.

Problems of Banking and Bank Supervision. Ex-cerpts from the 1938 Annual Report. 33 pages.

The History of Reserve Requirements for Banks inthe United States. 20 pages. November 1938.

Monetary Measures and Objectives. Three state-ments by the Board on objectives of monetary policy,on proposals to maintain prices at fixed levels throughmonetary action, and on legislative proposals relat-ing to monetary measures and objectives. 8 pages.July 1937, April 1939, and May 1939.

Revised Indexes of Factory Employment. Bureauof Labor Statistics indexes adjusted for seasonalvariation by Board of Governors. 32 pages, October1938; 10 pages, October 1939.

The Gold Problem Today, by E. A. Goldenweiser.4 pages. January 1940.

The Par Collection System of the Federal ReserveBanks, by George B. Vest. 8 pages. February 1940.

The Banks and Idle Money, by Woodlief Thomas.9 pages. March 1940.

Historical Review of Objectives of Federal ReservePolicy, by A. B. Hersey. 11 pages. April 1940.

Cheap Money and The Federal Reserve System, byE. A. Goldenweiser. 5 pages. May 1940.

Ownership and Utilization of the Monetary GoldStock. 3 pages. May and June 1940.

General Indexes of Business Activity, by FrankGarfield. 8 pages. June 1940.

New Federal Reserve Index of Industrial Produc-tion. August 1940. (This reprint in process of re-vision, will be available about December 1, 194.1.)

The Gold Stock. 2 pages. September 1940.

Measurement of Production, by Woodlief Thomasand Maxwell R. Conklin. 16 pages. September1940.

Gold Reserves of Central Banks and Governments.18 pages. September 1940.

Development of Federal Reserve Banking, byM. S. Szymczak. 8 pages. December 1940.

Economic Preparedness for Defense and Post De-fense Problems, by Marriner S. Eccles. 8 pages.January 1941.

Special Report to the Congress, submitted De-cember 31, 1940. 2 pages. January 1941.

Economic and Monetary Aspects of the DefenseProgram, by John H. Williams. 4 pages. February1941.

Federal Reserve Bank Lending Power not Depend-ent on Member Bank Reserve Balances. 2 pages.February 1941.

Commodity Prices, by Frank Garfield and ClaytonGehman. 16 pages. March 1941.

Inflation, by E. A. Goldenweiser. 3 pages. April1941.

Financial Problems of Defense, by Marriner S.Eccles. 11 pages. Mimeographed release, May 1,1941.

Gold, Capital Flow and Foreign Trade. A reviewof international trade and financial developmentsfrom the outbreak of war in Europe to May 1941,statements of the gold and dollar resources and ex-penditures of the United Kingdom, and the text ofthe Lend-Lease Act and Appropriation Act pur-suant thereto. 28 pages. January, February, andMay 1941.

Revised Indexes of Freight-Car Loadings. 5 pages.June 1941.

Seasonally Adjusted Estimates of NonagriculturalEmployment. 2 pages. June 1941.

Adjustment for Seasonal Variation, by H. C. Barton,Jr. Description of method used at the Board inadjusting economic data for seasonal variation. 12pages. June 1941.

Economic Aspects of Federal, State and LocalTaxation, by Marriner S. Eccles. 17 pages. Mimeo-graphed release, October 14, 1941.



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