View
1
Download
0
Category
Preview:
Citation preview
FEDERAL RESERVEBULLETIN
MAY, 1930
ISSUED BY THE
FEDERAL RESERVE BOARDAT WASHINGTON
Bank Credit and the Capital MarketAnnual Reports of Central Banks: Belgium,
Germany, Japan, and Switzerland
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1930
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BOARD
Ex officio members:A. W. MELLON,
Secretary of the Treasury, Chairman,
J. W. POLE,Comptroller of the Currency.
ROT A. YOUNG, Governor.EDMUND PLATT, VicemGovernor.ADOLPH C. MILLER.CHARLES S. HAMLIN.GEORGE R. JAMES.EDWARD H. CUNNINGHAM.
WALTER L. EDDY, Secretary.
E. M. MCCLELLAND, Assistant Secretary.J. C. NOELL, Assistant Secretary.W. M. IMLAY, Fiscal Agent.
Chief, Division of Examination, and Chief FederalReserve Examiner.
WALTER WYATT, General Counsel.
E. A. GOLDENWEISER, Director, Division of Researchand Statistics.
CARL E. PARRY, Assistant Director, Division of Researchand Statistics.
E. L. SMEAD, Chief, Division of Bank Operations.
District No.District No.District No.District No.District No.District No.District No.District No.District No.District No.District No.District No.
II
FEDERAL ADVISORY COUNCIL
1 (BOSTON) HERBERT K. HALLETT.2 (NEW YORK) WM. C. POTTER.3 (PHILADELPHIA) HOWARD A. LOEB.4 (CLEVELAND) HARRIS CREECH.5 (RICHMOND)..- JOHN POOLE.6 (ATLANTA) J. P. BUTLER, Jr.7 (CHICAGO) FRANK O. WETMORE, President.8 (ST. LOUIS) W. W. SMITH.9 (MINNEAPOLIS) GEO. H. PRINCE.10 (KANSAS CITY) .__ W. S. MCLUCAS.11 (DALLAS) ._ B. A. MCKINNEY, Vice President.12 (SAN FRANCISCO).—-.-_ F. L. LIPMAN.
WALTER LICHTENSTEIN, Secretary.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
Boston ___New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis.
Minneapolis...
Kansas City...
Dallas
San Francisco.
Chairman
Frederic H. Curtissj H Case
R. L. Austin
George DeCamp
Wm W Hoxton
Oscar NewtonWm. A. Heath _
Rolla Wells
John R. Mitchell
M. L. McClureC. C. Walsh _
Isaac B. Newton
Governor
Geo. L. Harrison _ _
Geo. W. Norris
E. R. Fancher
George J. Seay
Eugene R. BlackJ. B. McDougal
Wm. McC. Martin
W. B. Geery
W. J. Bailey...Lynn P. Talley
Jno. U. Calkins
Deputy governor
W. W. PaddockL. F, Sailer .E. R. KenzelA. W. GilbartL. R. RoundsJ. E. CraneWalter S. LoganWm. H. Hutt
M. J. FlemingFrank J. ZurlindenC. A. PepleR. H. BroaddusHugh FosterCreed Taylor...C. R. McKayJohn H. Blair
0. M. Attebery
Harry Yaeger _.H, I. Ziemer>_C. A. WorthingtonT W TTAI mR. R. GilbertR. B. ColemanWm. A. DayIra Clerk
Cashier
W. Willett.C. H. Coe *Ray M. Gidney.iJ. W. Jones.iW. B. Matteson.iJ. M. Rice.*Allan SprouUC. A. Mcllhenny.W. G. McCreedy.*H. F. Strater.
Geo. H. Keesee.John S. Walden, jr.» |M. W. Bell.W. C. Bachman.1K. C. Childs.*J. H. Dillard.iD. A. Jones.'0. J. Netterstrom.»S. F. Gilmore.iA. H. HailUF. N. HalUG. 0. Hollocher.»C. A. Schacht.*Gray Warren.Frank C. Dunlop.1J. W. Helm.Fred Harris.W. 0. Ford.iWm. M. Hale.
i Assistant deputy governor. » Controller.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of— Managing director
j New York:i Buffalo branch _ _ R. M. O'Hara.i Cleveland:I Cincinnati branch C. F. McCombs.j Pittsburgh branch.. J. C. Nevin.| Richmond:
Baltimore branch A. H. Dudley.Charlotte branch__ Hugh Leach.
Atlanta:New Orleans branch Marcus Walker.Jacksonville branch W. S. McLarin, jr.Birmingham branch A. E. Walker.Nashville branch J. B. Fort, jr.
Chicago:Detroit branch _| W. R. Cation.
St. Louis:Louisville branch....Memphis branchLittle Rock branch.
W. P. Kincheloe.W. H. Glasgow.A. F. Bailey.
Federal Reserve Bank of— Managing director
Minneapolis:Helena branch
Kansas City:Omaha branch.Denver branchOklahoma City branch.
Dallas:El Paso branchHouston branchSan Antonio branch
San Francisco:Los Angeles branchPortland branchSalt Lake City branch..Seattle branch _Spokane branch
R. E. Towle.L. H. Earhart.J. E. Olson.C. E. Daniel.
J. L. Hermann.W. D. Gentry.M. Crump.
W. N. Ambrose.R. B. West.W. L. Partner.C. R. Shaw.D. L. Davis.
SUBSCRIPTION PRICE OF BULLETIN
The FEDERAL RESERVE BULLETIN is the board's medium of communicationwith member banks of the Federal reserve system and is the only official organor periodical publication of the board. The BULLETIN will be sent to all memberbanks without charge. To others the subscription price, which covers the cost ofpaper and printing, is $2. Single copies will be sold at 20 cents. Outside of theUnited States, Canada, Mexico, and the insular possessions, $2.60; single copies,25 cents.
in
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
TABLE OF CONTENTS
PageReview of the month—Bank credit and the capital market 275
The credit situation—Decrease of commercial loans—Growth of bank investments—Growth ofbrokers' loans—The capital market.
Annual report of the Bank of Belgium 294Annual report of the German Reichsbank 298Annual report of the Bank of Japan 302Annual report of the National Bank of Switzerland 305Recent currency legislation in Switzerland 312National summary of business conditions 278Financial, industrial, and commercial statistics:
Reserve bank credit and factors in changes (chart and table) 279, 280Analysis of changes in monetary gold stock 280Gold movements to and from United States., 280Member bank borrowings at Federal reserve banks 281Discount rates and money rates 281,282Member bank credit 283Bankers' acceptances and commercial paper outstanding 283Brokers' loans 283Security prices, security issues, and building contracts awarded 284Production, employment, car loadings, and commodity prices 285Industrial production 286Factory employment and pay rolls 287
Banking and business conditions in Federal reserve districts:Federal reserve banks—
Discounts (chart and tables) 288, 289Reserves, deposits, note circulation, and reserve percentages 289
All member banks—Deposits subject to reserve, reserves held, and indebtedness at reserve banks. _ 289Member banks in leading cities—Principal resources and liabilities 290Bank debits 290Building 293Department stores—Indexes of sales and stocks 293Commercial failures 293Bank suspensions 293
Financial statistics for foreign countries:Gold holdings of central banks and governments 314Gold exports and imports 314Condition of central banks . 315, 316Condition of commercial banks 317Discount rates of central banks 318Money rates 318Foreign exchange rates 319Price movements 320, 321
Law department:Passage of trust powers upon consolidation of a national bank and a State trust company—Opinion
of the Supreme Court of Tennessee 322Authority of Congress for erection of Pittsburgh branch building 324Amendments to Federal reserve act 325
Detailed Federal reserve statistics, etc.:Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement 327Condition of each Federal reserve bank at end of month 328-330Maturity distribution of bills and short-term securities held by Federal reserve banks 331Membership in par collection system - 331Changes in national and State bank membership 332Fiduciary powers granted to national banks 333
IV
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BULLETINVOL. 16 MAY, 1930 No. 5
The creditsituation
REVIEW OF THE MONTH
The credit situation has continued to berelatively easy in recent weeks. Demand for
credit from commercial sourceshas declined further, while de-mand from the securities mar-
kets has increased. During the last two monthsincreased activity in the securities markets, alarge volume of bond issues, and—until themiddle of April—a rising level of stock priceshave been accompanied by an increase of morethan $785,000,000 in brokers' loans at NewYork City. Loans and investments of memberbanks in leading cities, after reaching a'lowpoint at the end of February, increased inMarch and April by about $750,000,000, reflect-ing growth in their security loans and in theirinvestments, while "all other" loans continu-ously declined. Indebtedness of member banksat the reserve banks decreased further in thetwo months by about $135,000,000, chieflyon account of liquidation made possible to themember banks by gold imports from the Orientand South America and a further inflow of cur-rency from circulation. As compared with ayear ago, the volume of credit extended by themember banks is larger by about $450,000,000,but the volume of their rediscounts with theFederal reserve banks has declined from nearly$1,000,000,000 to about $200,000,000, thelowest level since 1917. The funds for thereduction of these rediscounts have been de-rived from the addition of $200,000,000 to thecountry's stock of monetary gold, largelythrough imports from abroad, and an inflow of$150,000,000 of money from circulation, causedby decreased activity of trade and industryand a decline in the price level, the funds fromboth of these sources having tended to decreasethe total volume of reserve-bank credit, aswell as the volume of rediscounts by memberbanks; in addition, the Federal reserve bankshave increased their holdings of United States
Government securities by $350,000,000 andtheir holdings of acceptances by $100,000,000,these open-market operations having tendedto reduce member-ba.nk rediscounts withoutchanging the total volume of reserve-bankcredit in use. Easier conditions prevailing inthe money market, therefore, which accordwith the lower level of member bank indebted-ness at the reserve banks, reflect gold importsfrom abroad, a reduced domestic demand forcurrency, and a more liberal open-marketpolicy by the Federal reserve system.
The recent increase in member bank loanshas been altogether in the form of loans on
securities to brokers and dealersDecrease of ^ N e w Y o r k Q t A v a i i a b l ecommercial J
I o a n s information lor member banksin leading cities indicates that
other borrowers have been paying off theirloans, both secured and unsecured, at a rapidrate since the end of last October and thatduring this period they have liquidated about$2,000,000,000 of such loans. This decreasehas reflected in part diminution in the demandfor credit by trade and industry, owing to theprevailing recession in activity,1 but has alsoreflected a shift by borrowers on securities andotherwise from seeking direct accommodationat their own banks to borrowing indirectlythrough brokers. Such a shift is indicated bythe fact that loans on securities by banks inleading cities to borrowers other than brokershave decreased considerably; it is also suggestedby the fact that in recent months the decreasein "all other" loans, that is, loans not securedby stocks and bonds, has been largely at banksin New York City. It would appear, therefore,that borrowers on securities and on regularlines of credit, who had used the proceeds oftheir loans for the purpose of carrying or trad-ing in securities, have been influenced by theprevalence in the open market of lower rates
i The Board's current summary of business conditions in the UnitedStates appears on page 278.
275
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
276 FEDERAL RESERVE BULLETIN MAY, 1930
Growth of bankinvestments
than at their banks, to transfer their borrow-ings from these banks to their brokers, who canborrow at the open-market rate. This shiftrepresents a reversal of the movement thattook place in 1929 during the period of ex-tremely high rates on stock-exchange loans,when borrowings for the financing of securityoperations were transferred in considerablevolume from the brokers to the banks. Thisshift from other loans to brokers' loans has beena factor in the large increase in stock-exchangeloans that has characterized the period.
Liquidation of loans to others than brokersin recent months has taken place in all Federal
reserve districts, and fundsplaced in the New York moneymarket have come from banks
throughout the country. Member bank hold-ings of investments, as measured by thefigures for reporting member banks, aftershowing little change from the first of theyear, increased in the last half of March andless rapidly throughout April in the amountaltogether of about $260,000,000. Exceptingthe period of the October-November break inthe securities markets this is the most rapidincrease in the banks' investment portfoliosince November, 1927. This increase in theinvestments of member banks is another indi-cation of the fact that these banks do not en-counter a demand for all their funds from theircommercial customers, and seek to employ thesurplus in the purchase of investments as wellas in making loans on the stock exchange.
Growth of brokers' loans in the past hasusually accompanied an advance in security
prices, and this has been thecase in recent months, butsince early in April the advance
in brokers' loans has continued, while securityprices have tended to recede. Between theend of December and the first week in Aprilprices of common stocks advanced by 20 percent, but later in April they showed a down-ward tendency. The advance in stock priceshad been almost continuous for more thanthree months, becoming especially rapid after aperiod of pronounced ease in the money marketfor a few days in the early part of March. A
Growth ofbrokers' loans
factor in the recent growth of brokers' loans,which include loans to issuing houses, has beenthe large volume of bonds issued and in processof distribution.• The course of brokers' loans, showing a dis-
tribution between loans by banks and loans byother lenders, is presented in the chart for theperiod since the end of 1927. During Decem-ber, 1929, and the first two months of 1930there was relatively little change in the aggre-gate of brokers' loans, funds withdrawn bynonbanking lenders being replaced by funds
MILLIONS OF DOLLARS7000
6000
5000
4000
3000
2000
1000
MILLIONS OF DOLLARS
7000
6000
5000
4000
3000
2000
1000
1928 1929 1930
Loans by reporting member banks in New York City (1) for ownaccount and account of out-of-town banks and (2) for account ofothers
loaned by the banks themselves. Furtherwithdrawals by nonbanking lenders were madein March, but from the end of February themoney placed in the call market by the banksexceeded these withdrawals. The growth ofbrokers' loans in April represented not onlya further increase in lending by banks, but alsoan increase of $120,000,000 of loans for otherlenders, the first growth in this class of loanssince last October. At their present level of$1,400,000,000 loans for nonbanking lendersplaced by reporting New York banks, notwith-standing the recent increase, are lower thanat any time during the two years between thespring of 1928 and the end of March, 1930.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 277
Loans to brokers by banks, on the other hand,which total $2,900,000,000 at the present time,are close to the highest levels that they have everreached, and brokers' loans by banks in New YorkCity for their own account are larger than at anyprevious time, excepting only the week follow-ing the break in the stock market last October.'
With greater activity in recent months in themarkets for securities, the volume of new
securities issued has been in-e capi a creasing and in the first quarter
maF e of 1930, at $2,140,000,000, wasmuch larger than in the final quarter of lastyear, but continued to be below the excep-tional levels of the late months of 1928 and thefirst three quarters of 1929. More than halfof the new issues during the last six monthshave been in the form of bonds, for the firsttime in more than a year, and from Januarythrough March bonds represented more than75 per cent of the new issues. New foreignsecurities issued in the American market duringthe quarter in the amount of $300,000,000 repre-sented about one-sixth of all bond issues. Pre-liminary figures for April indicate that as inprevious months most of the new financing inthe American market was accomplished throughthe issue of bonds.
Bond prices advanced in February andMarchto the highest level in nearly two years, but afterthe third week in March they receded. In thesecondand third weeks of March, when excep-tionally easy credit conditions accompaniedthe quarterly Treasury financing, bond pricesadvanced by 1.5 per cent, but in subsequentweeks they declined by more than one-half of thisamount. A factor in this decline, in addition tothe passing of the temporary period of exception-al ease in the money market, was the continuedissue of new bonds in substantial volume. Fur-thermore, the preference of in vestors for stockshas continued in recent months, as for severalyears past, and has been a factor in making therevival of the bond market slow and irregular.
Changes in Discount Rates and Bill Rates
The discount rate on all classes and maturi-ties of paper was reduced from 4% to 4 per
cent at the Federal Reserve Bank of Dallas,effective April 8; at the Federal Reserve Bankof Richmond, effective April 11; at the FederalReserve Bank of Atlanta and the Federal Re-serve Bank of St. Louis, effective April 12; andat the Federal Reserve Bank of Minneapolis,effective April 15.
The discount rate at the Federal ReserveBank of New York was reduced from 3% to 3per cent, effective May 2. The buying rate onbills with maturities from 1 to 120 days wasreduced from 3 to 2% per cent, effective May 1,and to 2% per cent, effective May 2. Rateson bills with maturities of 4 to 6 months werereduced from Sji to 3 per cent, effective May 2.
Changes in Foreign Central Bank Discount Rates
The following changes have been made sincethe 1st of April in the discount rates of centralbanks in foreign countries: April 3, Bank ofSweden, from 4 to 3% per cent; Imperial Bankof India, from 7 to 6 per cent; National Bankof Switzerland, from 3^ to 3 per cent; April24, Bank of Italy, from 6K to 6 per cent;April 28, Bank of Finland, from 7 to 6%per cent; May 1, Bank of England, from 3% to3 per cent, and National Bank of Belgium, from3K to 3 per cent; May 2, Bank of France, from3 to 2}i per cent, and Bank of Danzig from 5% to5 per cent; May 3; Bank of Denmark, from 02to 4 per cent.
Revision of Member Bank Reporting Service
Beginning with the statement for April 23,1930, the statistics for weekly reporting mem-ber banks in leading cities have includedfigures of a number of selected banks in the Chi-cago district—but outside the city of Chicago—in the place of figures for one large bank inChicago. This change was necessitated by thewithdrawal of this bank from the Federal re-serve system through merger with a nonmem-ber bank; the merger occurred in 1929 but byspecial arrangement it did not affect the re-porting service until recently. Adjustment ofthe reporting service has been made in suchmanner as to preserve as nearly as possiblethe comparability of the series for the Chicagodistrict and for the country as a whole. Forthe city of Chicago, however, since the newseries must be at a level considerably lowerthan the old one, comparable figures have beenprepared back to the beginning of 1929; theseare given by months on page 283, and recentweekly figures are given on page 290.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
278 FEDERAL RESERVE BULLETIN MAY, 1930
Annnal Report of the Federal Reserve Board
The text of the annual report of the FederalReserve Board, covering operations for 1929,was presented to Congress on April 24 and re-leased for publication April 25.
The complete edition of the report is now inpress and is expected to appear in May. It con-tains, in addition to the text of the report,
tables giving all the items of the so-called " ele-ments analysis"—reserve bank credit, goldstock, money in circulation, member bank re-serve balances, etc.—and statistics relating todiscount rates and money rates and to bankingand business conditions generally. It also givesthe recommendations made by the FederalAdvisory Council during 1929 and court deci-sions relating to the Federal reserve system.
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled April 21 and released for publication April 24]
Industrial production declined in March,while factory employment and pay rolls showedlittle change, and wholesale prices continuedto decline. There was an increase in construc-tion, as is usual a,t this season. Interest ratescontinued to decline in the first three weeks ofMarch, but later became somewhat firmer.
Production.—Production in basic industriesdeclined in March, contrary to the usualseasonal trend. Average daily output of steel,coal, and copper decreased substantially, whileoutput of cotton and wool textiles declined atabout the usual seasonal rate. Production ofautomobiles and lumber increased.
For the first quarter of the year, taken as awhole, output of basic industries was consid-erably smaller than in the unusually activefirst quarter of 1929 and smaller than in anyother first quarter since 1925. In the steel andautomobile industries output for the first threemonths, though smaller than in 1929, was aboutthe same as in the corresponding months in1928, while in most of the other major indus-tries it was smaller than in either of the twopreceding years.
Building contracts awarded increased sub-stantially in March as is usual at this season,according to reports of the F. W. Dodge Cor-poration. In comparison with a year ago, alarge increase in contracts for public works andutilities was more than offset by a decrease inresidential building. Average daily awards inthe first half of April were somewhat largerthan in March, but continued smaller than ayear ago.
Employment.—Factory employment andpay rolls, which usually increase during March,changed little from February and continued tobe considerably smaller than in other recentyears. The number of workers employed inthe automobile industry increased somewhatless than is usual at this season, and reductionsin employment and in earnings were reportedin the iron and steel, machinery, and car-building industries.
Distribution.—Freight carloadings, whichhave been at low levels in recent months, didnot show the usual seasonal increase duringMarch. Department-store sales continued insmaller volume than a year ago.
Wholesale prices.—Wholesale prices, whichbegan to decline last summer, continued tomove downward in March to the lowest levelsince 1916, the decline reflecting chiefly sharpdecreases in prices of agricultural products.Prices of imported raw materials, such assugar, coffee, and silk, fluctuated around thelow levels reached in February. The price ofsilver advanced slightly from the low pointreached early in March.
In the last week in March and the first'weekin April there were advances in prices of agri-cultural products, especially grains and cotton,while the price of steel declined. On April 15the price of copper was sharply reduced, and inthe same week prices of a number of other im-portant commodities also declined.
Bank credit.—At member banks in leadingcities total loans and investments increased inthe 4-week period ending April 16, reflecting agrowth of $184,000,000 in loans on securitiesand of $80,000,000 in investments, offset inpart by a further decrease of $186,000,000 in"all other" loans.
Member-bank indebtedness at the reservebanks and total reserve-bank credit declinedfurther between the weeks ending March 15and April 12, reflecting primarily additionalimports of gold from the Orient.
In the third week of March money rates inthe open market reached the lowest levels since1924, but in the next three weeks were some-what firmer. Rates on commercial paperdeclined to a range of 3%-4 per cent on March24 and remained steady at that level; rates on60-90 day bankers' acceptances were reduced to2K per cent on March 20 but later advanced to3 per cent. Bond yields, after declining duringmost of March, increased gradually in the firsthalf of April.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A T , 1930 FEDERAL RESERVE BULLETIN 279
FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGESMILLIONS OF DOLLARS MILLIONS OF DOLLARS
1926 1927 1928 1929 1930Based on weekly averages of daily figures; latest figures are for week ending April 26
109492—30 2
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
280 FEDERAL RESERVE BULLETIN MAY, 1930
RESERVE BANE CREDIT OUTSTANDING AND FACTORS IN CHANGES
[Averages of daily figures. In millions of dollars]
Month or week
1929—January 859FebruaryMarchApril 1,004May 956June 978July 1,096August 1,043SeptemberOctober 885November 953December
1930—January 601February 378March 274April ! 231
Week ending (Saturday)— iApr . 5. ! 249Apr . 12 i 242Apr . 19 ! 220Apr . 26 ! 228
Reserve bank credit outstanding Factors of decrease * Factors of increase i
Bills dis-counted
Billsbought
4733852651561459975124229337296320314285246266
292271285251
UnitedStates
securities
184197165153179147155165154315446485480540530
532528533528
Otherreservebank
credit»
62445052496162546474677467383545
44335747
Total
1,6131,5021,4811,3771,3031,3171,3801,3761,4271,4501,6311,6431,3571,1811,0951,072
1,1171,0741,0951,054 I
Monetarygoldstock
4,1154,1434,1664,2264,2924,3114,3354,3514,3684,3814,3744,3244,2834,3194,3954,443
4,4274,4354,4394,449
Treasurycurrencyoutstand-
ing
1,7891,7841,7911,7851,7871,7791,7901,7811,7661,7851,7891,7971,7841,7811,7971,781
1,7721,7811,7861,780
Moneyin circu-
lation
4,7484,6864,7094,6794,6844,6874,7644,7774,8114,8104,8454,9434,6524,556 i4,533 |4,518
Memberbank
reservebalances
4,5404,5294, 5314,500
2,3872,3572,3372,3082,2962,3142,3342,3222,3352,3862,5212,3952,3492,3052,3302,350
2,3502,337 ,2,3582,354
Non-memberclearingbalances
Unex-pendedcapitalfunds
351357361366370376376382387392
397400
399
400400
i For explanation see BULLETIN for July, 1929, pp. 432-438.a Includes "other securities," amounts due from foreign banks, and reserve bank float; for explanation see BULLETIN for July, 1929.
ANALYSIS OF CHANGES IN MONETARY GOLD STOCK[End of month basis. In millions of dollars]
Month
1928—JulyAugustSeptemberOctober-NovemberDecember
Total (12 mos.)..
1929—JanuaryFebruaryMarchAprilM a yJuneJulyAugustSeptemberOctober.NovemberDecember
Total (12mos.)._
1930—JanuaryFebruaryIVTarchApril v
Goldstockat end
ofmonth
4,1134,1234,1254,1424,1284,141
Increase or decrease (—)month
Total
3.410.32.1
17.3-14.0
13.2
! -237.9
4,1274 1534,1884,2604,3014,3244,3414,3604,3724,3864,3664, 284
4,2934,3554 4234,491
-14.426 434.472.440.623.416.318.912.114.4
-19.8-82.3
142.4
8.861.968 268.1
i For explanation of this figure, which isumns, see BULLETIN for December, 1928, p.
J» Preliminary.
Throughnet goldimport
orexport
-63.90.70.5
13.36.7
23.3
-392. 0
47.225 524.823.123.630.234.718.417.617.5
-23.2-64.4
175.1
4.060.055 562.2
Throughear-
markingopera-tions
60.95.9
L 2-25.0-15.7
119.6
-65.0
7.548.616.1
- 7 . 5-22.0- 1 . 0-6 .6- 4 . 5
1.0-22.0
-55.4
2.50.0
13 00.5
during
Throughdomesticproduc-
tion,etc.*
6.43.72.82.84.35.6
34.5
3.4.9
2.10.70.90.73.61.51.11.42.44.1
22.7
2.31.9
—0 35.4
derived from preceding col-831.
GOLD MOVEMENTS TO AND FROM UNITED STATES[In thousands of dollars]
From or to—
EnglandFrance.Germany . .
NetherlandsCanadaCentral AmericaMexicoArgentinaBrazilChileColombiaEcuador.Peru_VenezuelaBritish IndiaChina and Hong
KongDutch East IndipsJapan
New ZealandAll other countries..
Total
April (pre-liminary)
Im-ports
Ex-ports
36,738
2,396
21,583
11,605
2 62,332
190
90
1930
March
Im-ports
Ex-ports
* 472
3,10059
4 24928
5,42539
195
20
24
1
1,155 i226212
44
2 410139
38, 3149Q7
50
15 142
55,768 1 290
January-March
Im-ports
72725
8,886572
6 728325
22,67884
Ex-ports
1958,497
156
70
415
2 440482660129
3 250 99380 KCi
79, 222764
542,163
128,874
40
9,445
1 Includes all movements of unreported origin or destination.1 At New York—imports, $40,739,000; exports, $90,000. Elsewhere—
imports, $21,593,000.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAT, 1930 FEDERAL RESERVE BULLETIN 281
MEMBER BANK BORROWINGS AT FEDERAL RESERVE BANKS[Monthly averages of weekly figures. In millions of dollars]
Month or date
JanuaryFebruary. .MarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
Total 1
1929
891893978991951972
1 1001,013
974885944755
1930 i
462 i371 1247 i
I
i
!
Reporting member banks in leading cities
Total
1929
663659740725661670801717706634655490
1930
24717481
New York City
1929
190131166162
i 145165319196166746080
1
1930
3921
1
C
Tc
1929
473528574563516505482521540560595410
)ther leading cities
>tal
1930
20815380
. . .
: : : .
. . . . . .
Chicago
1929
6993
121463664473218382837
1930
71
Member banksoutside leading
cities i
1929
228234238266290302299296268251289265
1930
215197166
i Includes (in small amounts) discounts by Federal reserve banks for nonmembers: (1) bills discounted for intermediate credit banks and (2)notes secured by adjusted service certificates discounted for nonmember banks.
FEDERAL RESERVE BANK RATESDISCOUNT RATES
[Rates on all classes and maturities of eligible paper]
Federal reserve bank
BostonNew YorkPhiladelphia. __ClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco..
Rate ineffect on
May 3
434444444444
Dateestab-lished
Feb. 13May 2Mar. 20Mar. 15Apr. 11Apr. 12Feb. 8Apr. 12Apr. 15Feb. 15Apr. 8Mar. 21
Previousrate
434
4344H434
4H4H
BUYING RATES C N ACCEPTANCES
(Buying rates at the Federal Reserve Bank of New York]
MaturityRate in j Dateeffect on J estab-M a y 3 j lished
Previousrate
1-15 days \ 2%| May 216-30 days j 2%...do31-45 days j 2M'—do46-60 days j 2%'~.do61-90 days _ j 2%'—do91-120 days j 2%|—do.__.121-180 days j 3 j Mar. 20
i Reduced from 3 to 2% per cent, effective May 1.
NOTE.—Rates on prime bankers' acceptances. Higher rates maybe charged for other classes of bills.
OPEN-MARKET RATESRATES IN NEW YORK CITY
Month or week Primecom-
merical
months!
1929April _May _JuneJulyAugustSeptemberOctoberNovember _December...
1930JanuaryFebruary- !March jApril |Weekending— j
Apr. 5 |Apr. 12 !Apr. 19 |Apr. 26 i
Prevailing rate o n -
Primebank-
ers'accept-
90days
6 -6H6H6H
5H-6H5
ZH-A
-4
m
3^-4
Timeloans,
90days3
8 -834
734-8
7 -9
434-5ZH-AH4 -AH
Average rateon—
Call loans *
New
9.468.797.839.418.158.626.105.404.88
4.314.283.563.79
2JS-33
4 4.004H 3.674HJ 3.83
4 -4J4: 3.56
Re-newal
8.917.709.238.238.506.435.444.83
4.644.323.694.00
4.40
4.00
4.00
4.00
Average yieldon—
U. S.Treas-
urynotesand
certifi-cates,3 to 6
months
4.805.09
•4.804.554.70
«4.584.373.47
<3.03
3.36<2.95
3.00
2.902.973.063.06
Treas-ury
bonds1
3.673.673.713.683.723.703.673.453.46
3.513.503.403.46
3.453.463.483.46
1 Stock exchange call loans; new and renewal rates.» Stock exchange 90-day time loans.1 3 issues—394, 4, and 4H per cent; yields calculated on basis of last
redemption dates—1956,1954, and 1952.* Change of issues on which yield is computed.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
282 FEDERAL RESERVE BULLETIN M A Y , 1930
PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIESWEIGHTED AVERAGES
Month
New York City Eight other northern andeastern cfties
Twenty-seven southern andwestern cities
JanuaryFebruary...MarchAprilMay -JuneJulyAugustSeptember-OctoberNovember_.
4.664.564.564.634.634.604.564.414.444.49 ;4.35
December 4.50 ;
1927 1928 1929
4.564.444.594.724.975.095.385.565.635.635.56
5.745.735.815.855.885.935.886.056.066.085.86
5. 63 5. 74
1930
5.645.355.224.91
1927
4.994.984.884.904.954.934.904.874.774.794.824.76
1928
4.734.764.814.915.045.365.575.595.805.805.825.91
1929
5.875.865.916.006.096.026.086.116.246.256.125.94
1930
5.885.665.475.22
1927
5.72 i5.71 I5.65 !
5.575.595.54 i5.52 !5.535.615.56 :
5.56
1928 1 1929 | 1930
5.535.535.545.545.565.675.775.805.825.875.90
5.60 ! 5.91
I5.945.966.046.076.106.166.176.226.276.296.296.20
6.126.045.985.84
NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are givenon preceding page). All averages are based on rates reported for three types of customer loans—commercial loans, and demand and time loanson securities. The method of computing the averages takes into account (a) the relative importance of each of these three types of loans and (6)the relative importance of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included isweighted according to the importance of that city in the group, as measured by the loans of all banks.
PREVAILING QUOTATIONS
Federal reservebank or branch city
New York City
Northern and East-ern Cities
BostonBuffalo _ .PhiladelphiaPittsburgh . . -ClevelandCincinnatiDetroitChicagoSouthern and West-
ern Cities
RichmondBaltimoreCharlotteAtlantaBirminghamJacksonville .Nashville -New OrleansSt. LouisLittle Rock - -LouisvilleMinneapolisHelena . .Kansas CityDenver - -Oklahoma CityOmahaDallasEl PasoHoustonSan Antonio.... >San Francisco . -Los Angeles. . ._Portland..Salt Lake CitySeattleSpokane
Prime commercial loans
Febru-ary, 1930
5 -5M
5 -5K
5 4- 6 2
534 "*6
6
5 -6
5H-6H6 -8
65H-6H5 -66 -6l/2
6
4 8
66
534-6
6 2-8 2
66 -7534-66 -634
66
5)4-66
March ,1930
4%-5534-65 -5M53^-6
i5
55V5^6
1-6
6-534
-6{-fi
-flU6 -8534-6
6534-6345 -51/2-6 -fiV£
5
556
6
6
6
8 *
6 2
6-534-7-86
- 6 H
6 2
6fi6
April ,1930
4>MH
5 2-6
5 2-6 2
5 -6434-5
534 6
6 -85 -6
65 -6434-534
6
^ 8
534-534
65 -534534-66 -8
66 -634
5 -6
6 2
OS
O
S
6
Loans secured by prime stock-exchange collateral
Febru-ary, 1930
534-6
5 -SU65)
5}fifi5}
516fi
CO
CO
6516
fi4-6
-fiU
6<S-fi
-7
-7-7
6-7
6534-6 v2
85^-66 -76666666
6
6>
8-634-8-8-7-8
-fiUi-i"
March,1930
5 -6
6
5H-66 -7
5 -634
65U-6
CO
C
C
6 -76 16 -7
$*?6534-6
85M66 -786 -76 -86 -86 -76 -8
6 -7 2
6 -7 "6 —634
April ,1930
4H-534
5 -65^-634534-6345 -5H
4%-66
6 -6346 -76 16 -7534-66 -7
668
5M-66 -634
86 -6M6 -76 -8
66 -86 -6346 -6346 -%y26 -7
6M-7
Loans secured by warehousereceipts
Febru-ary, 1930
5^-6
64-63466
6 -634
66
6 -86 -8
534-66 -7
6
6 4 - 8 4
6'2-86 -86 -634
68
6 sy2
6 -86
6 2-77
7
March ,1930
5
516
fii
5}
5}
4-fi
6 2
fi4-G
fii-6
666
6 -86 -853^ 66 -634
534-66 -8
5'6
53>fi
OS
OS
O
S
OS
O
S
fi1
6
8 2
i-6-8-8
6-63486
-86
-7-7
7^-7
April ,1930
5
6 -634
66
6 -76 -6345 -6
666
6 -76 -85M-6
6 -86
6 2-8534-66 -86 -8
6534-6
86
6 -86
6H-76 -77634-7
7
Interbank loans
Febru-ary, 1930
5
5
5
5>
5}
51
51
51
6
5^fi
6
5>
56
-5V}
6 2
^-666
i-6
f-fi
6fi66
-4-fi£-6H
2 fi
CO
C
OC
O
CO
CC
6-63466
i-66
-6y2
666
March ,1930
4H-5H
5 % 4
65^-6534-7
6
5)|-666
CO
C
OC
C
534-65^-66 -7
66
6 -8534-6i
66 -634534-6
534-66
5 - 5 H6 -634
6666
April ,1930
434-5346
5 -&A5 -6534-6
5 ^
5 -65 -6
66
534-66
534-65 -65 -6
65 -6534-66 -8534-66 -634
66
6
65 -5H
66666
NOTE.—Rates shown are those at which the bulk of the loans of each class were made by representative banks during week ending 15th ofmonth. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the larger banks in their respective eities.
Revised.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 283
MEMBER BANK CREDITREPORTING MEMBER BANKS
[In millions of dollars. Monthly data are averages of weekly figures]
Loans and investments
Month or date
Total:1929—Mar
AprMayJuneJulyAugSeptOctNovDec
1930—JanFebMar
Mar. 26..Apr. 2_._Apr. 9 —Apr. 16..Apr. 23. .Apr. 3 0 -
New York City:1929—June
JulyAugSeptOctNovDec
1930—JanFeb _Mar
Total !iTotal
Loans
Onse-i Allicurities! other
22,472 I22,388 j |22,113!22, 23122,47922,465j22, 646!23,12423, 663i23,012'22,368!:22, 08322, 352;
16, 49116,46416, 27716,480!16, 950!16, 96917,19717, 706!18, 041117, 444116,821!16, 542;
16, 746!
22,563; 16,885;22, 633!! 16,913122,560! 16,829'22, 592 16, 84522,746: 16,955!22,755! 16,964.1
7, 2811 5,4687,496 ! 5,8047,407 5, 6887,5077,837
5,8036,108;
8, 349 : 6, 380i8,001h 6,02ll|7, 664 i 5, 705 i7,493! 5, 584 I7,649 5, 720; I
M a r . 26...I 7,756Apr. 2.-_JApr. 9 |Apr. 16—iApr. 23 IApr. 30.._
7,8507,7247,7387,8857,94"
Other leadingcities:
1929—June I 14,950July 14,983Aug. I 15,058Sept _j 15,139Oct.. 1 is"15, 288Nov ! 15,314Dec ! 15,011
1930—Jan , 14,705Feb 14,590Mar 14,703,
Mar. 26—Apr. 2Apr. 9Apr. 16—Apr. 23—Apr. 30..
Chicago: 11929—Jan
FebMarAprMayJuneJuly___A u g . . .Sept—OctNovDec___.
1930—JanF e b . . - .Mar
5,810:5,894i5,780;5,785,5,9125, 969;
11,012,11,146|11, 281j11,394111, 598!11, 66111,42411,11510, 958111,026
14,80714, 78314,83614,85414,861;14,809
1,9341,9531,9841,9041,8791,8981,8811,9321,9201,9861,9771,9091,8291,8011,850
11,075;11,019!11,049!11,060!11, 044:10, 995
1,5271,553!1, 582:1, 512!1, 4991
1, 5181, 5031, 559;1, 558'1,6281, 6141, 5451,461:1,442!
1,487
7, 5807,3927,2187,3327,7167, 578!7, 654!8,098|8, 249!7, 9687, 794|7,6717,964
8,1838,2448,1638,2388, 3268,381
2,749|3,0452,8452,8923,1913, 340;3,U2l2, 9451
2,909;3,115
3,2803,3933,2843, 316!3,409!3,511
8,9119,0739, 0599,1499,2349,3909,5439,6089,7929,4769,0278,8718,781
8,7028,6098, 6668, 6078, 6298,583
2,7192,7582,8432,9112,9163,0402,90912, 7602,6752, 605
2, 5302,5012,4962,4682,5032,458
4,582!4, 670!4,734|4, 762!4,906i4,909 :
4,8564,849:4, 7624,850;
4,903!4,8514,8781
4,921:4,918;4,870j
817j843,883|837i825i837833872859923i922885851
6,4306,4766,5476,632|6,692|6,7526,5686,2676,196.6,176i
6,172 ;
6,1686,1716,1396,1266,125
710710700676675681670687699705693660610593
Totalinvest-ments
5,9815,9245,8365,7515,5295,4965,4495,4185,6235,5675,5485,5415,607
5,6'5, 7195,7315, 74'5,7915,791
1,8121,6921,7201,7041,7291,9691,9811,9591,9091,929
1,9461,9561,9441,9531,9731,977
3,9383,83^3,7763,7453,6903,6543,5873,5893,6323,677
3,7323,7633,7873,7943,8173,814
407400402392380381378373362358363364367359363
Dueto
banks
2,8612,7092,5452,5322,7382,6042,7182, 9163, 0082,8862,8282,8182,898
2,9223,0612, 9542, 9612,7972, 930
796935827887
1,0231,132
980931902952
9831,039
975975891
1,030
1,736
Bor-rowing
atF . R.banks
74072566167080171770663465549024717481
478275655874
1653191961667460803921
1
1531161012
1, 803i1, 777j1,8301,893|1,87511,9061, 8971,9161,'946
1,9382,0211,979|1,986;1,9051,900
3293233423201307!314!310'308!3133093031310!306311334
48252154056159441020815280
476745494962
9312146366447321838283771
1 New series; for explanation see note on page 277.
BROKERS' LOANSREPORTED BY THE NEW YORK STOCK EXCHANGE[Net borrowings on demand and on time. In millions of dollars]
End of month
JanuaryFebruaryMarchAprilMayJuneJulyAugust.SeptemberOctoberNovemberDecember
TotalFrom NewYork banks
and trust com-panies
1929
6,7356,6796,8046,7756,6657,0717,4747,8828,5496,1094,0173,990
1930 1929
3,9854,1684,656
1 5,063
5,6645,6195,7135,5805,4825,7976,1546,4927,0775,3133,4323,370
1930
3,3683,5294,0264,409
From privatebanks, brokers,foreign banking
agencies, etc.
1929
1,0711,0601,0911,1941,183' 1,275-1,3201,3901,472796585620
1930
616
631654
1 Call loans, $4,363,000,000; time loans, $700,000,000. • Corrected.
MADE BY REPORTING MEMBER BANKS IN N. Y. CITY
[In millions of dollars. Monthly data are averages of weekly figures]
For banks
Month or date
1929—JanuaryFebruary. _.MarchAprilMayJune__JulyAugustSeptember..OctoberNovember..December..
1930—JanuaryFebruary—.March
Apr. 2.Apr. 9_AprAprApr.
Total
5,4085,5555,6795,4775,4915,3835,8416,0696,5406,4984,0233,3913,3513,459
3 3, 741
3,9683,9944,1244,2174,274 1
]
Total
2,9742,8992,8002,5832,5262,4432,8492,7782,8982,8961,8691,6011,7061,9132,310
2,6512,655 :2,7332,7812,878
Forothers
2,4342,6562,8792,8932,9652,9402,9923,2903,6423,6022,1541,7901,6441,5461,430
1,3161,3391,3921,4361, 397
1 Weekly reporting member banks in New York City.1 Member and nonmember banks outside New York City (domestio
banks only); includes unknown amount for customers of these banks.3 Call loans, $3,300,000,000; time loans, $440,000,000.
ACCEPTANCES AND COMMERCIAL PAPER[In millions of dollars]
End of month
JanuaryFebruary _ _MarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember _
Bankers' acceptances out-standing
1927
774785809811775751741782864975
1,0291,081
1928
1,0581,0561,0851,0711,0411,026
978952
1,0041,1231,2001,284
1929
j . 279
1
L, 228,205,111
L, 107,113
L, 1271,201L, 2721,541L.6581,732
1930
1,6931,6241,539
Commercial paper out-standing
1927
551577606599582579569591600611603555
1928
577567570571541503483458430427421383
1929
407411387351304274265267265285316334
1930
404457529
Figures for acceptances as compiled by American Acceptance Council;for commercial paper as reported by about 25 dealers.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
284 FEDERAL RESERVE BULLETIN M A Y , 1930
SECURITY PRICES, SECURITY ISSUES, AND BUILDING CONTRACTSSECURITY PRICES
[Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures]
Month or date
Number of issues.1929—-January
February. _.MarchAprilMay -_.JuneJuly .A
Bonds*
60
Pre-ferredstocks2
97.096.395.895.895.795.395.2
August 95.0September ... 94.8OctoberNovemberDecember
95.195.796.5
1930—January 96.5February | 96.4March j 97.8April ! 97.9Apr.3 ! 98.2Apr. 10 i 97.9Apr. 17 ! 97.8Apr. 24 ! 97.6Apr. 30 ! 97.8
20129.2128.8128.7128.6128.6127.7127.0126.3126.8126.4123.9126.4126.5126.9127.8128.2128.3128.5128.0128.1128.0
Common stocks (1926=100)
TotalIndus-trialissues
337193192196193193191203210216194145147
149156163171
170174173170167
Rail-roads
Publicutility
33142"142140138139145160165168157135136
137143143142146144142141136
34193202204201212233273304321277195201
209231242264258267266264263
Selected groups of industrial issues
Auto-mobile
281277284278261242241241241196134134
135145155162162174166158151
Build-ing
equip-ment
13164163160157158158169165172152114113
117125125127
130132129126120
Chainstore
17159153150149148145148149155139104106
102100100101
101101102101100
Chem-ical
223231232235248270315320338305214228
240254266282
281288293278268
Cop-perand
brass
262286329294280271281289294259204196
193193193174198185177161151
Elec-tricalequip-ment
4_257258257255282308360405399345227241
265307323359349370373356347
Ma-chin-ery
10168174167163161159172177191172135143
146154161173
166171176179173
Oil
16137133141148146144149158167161131132
129128141156152156153158159
Steel Tex-tile
174 i179 i187 ,191185 ;
188 :212238 ;244 :217 !169170
177188192197
200201200195189
301441381361321271221201181141037877
78858583
8585848280
i Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity. 2 20 high-grade industrials; average price.
DOMESTIC CAPITAL ISSUES
[In millions of dollars. Source: Commercial and Financial Chronicle]
Class of issue
Total . . .
Corporate issuesBonds and notes—
Long termShort term
StocksFftrm-lnftn issuesMunicipal issues
Total new and re-funding
March, 1930
N e w
658.0
515.9
367.925.0
123.020.0
122.1
Re-fund-ing
18.2
15.5
10.54.6.4
2.7
676.1
J
19
New
1,840.1
1,514.4
1,028.187.4
398.922.0
303.7
ranuary-March
30
Re-fund-ing
103.8
98.3
76.021.01.3
5.5
1,943.8
l
1929
New
2,463.1
2,227.3
625.237.6
1,564.5
235.8
2/71
Re-fund-ing
325.8
321.2
185.08.0
128.2
4.6
58.9
FOREIGN CAPITAL ISSUES
[In millions of dollars]
Class of issue
Total
New issuesEurope. _.Canada and Newfound-
landLatin America .U. S. insular possessions.Miscellaneous
Refunding issuesTotal Government and
corporate
March, 1930
Gov-ern-
ment
42.8 107.6
38 822.9
2 93.0
10.04.0
107 6
2 8
104.8
150.4
January-March
1930
Gov-ern-
ment
107.9
58.922.9
16.18.51.5
10.049.0
Cor-porate
201.4
201.434.3
22.4
144.8
309.3
1929
Gov-ern-
ment
53.8
47.223.6
1.820.41.5
Cor-porate
198.5
196.520.8
32.72.26.5
134.42.0
252.3
BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING
[Value of contracts in millions of dollars]
January .FebruaryMarch
Year to dateAprilMay _JuneJulyAugustSeptemberOctoberNovember -December
Total
1929
410.0361.3484.8
1,256.1642.1587.8545.9652.4488.9445.4445.6391.0316.4
1930
324.0317.1456.1
1,097.1
Residential
1929
138.1129.5197.2464.7256.8192.0189.8199.9146.1118.4137. 7113.5114.0
1930
66.674.8
101.5242.9
Industrial
1929
63.156.155.8
175.068.280.870.066.675.352.660.939.767.4
1930
38.333.574.3
146.1
Commercial
1929
100.468.375.6
244.278.086.580.991.372.070.967.7
101.833.4
1930
54.172.977.0
204.0
._
Public works andpublic utilities
1929
66.557.671.5
195.6152.1139.4120.8194.5119.3117.285.172.451.8
1930
112.185.8
105.3303.2
Educational
1929
17.722.637.577.829.938 243.448.032.329.836 925.719.8
1930
19.021.235.475.6
All other
1929
24.127.347.298.657.150 940.952.043 950.457 338 029.9
1930
34.028.862.6
125.4
Figures for building contracts awarded are fer 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDEEAL RESERVE BULLETIN 285
PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND PRICES[Index numbers; 1923-1925 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variations]
Year and month
Industrial production*
TotalI
Unad-justed
1919 ! 831920 ! 871921 i 671922 I 851923 1011921 i 951925 104192G ; 1081927 : 1061928 1111929 j 118
1926 IJanuary ! 105February. . ; 108March j 109April 108May 107June i 106July 103August ; 109September | 113October 114November 110December i 101
1927 |January 106February | 110March ' 113April 110May 112June 107July 102August 105September . 106October ; 105November 101December 96
192S IJanuary • 105February ' 112March : 112April 110May 110June : 108July 105August 111September 116October , 118November > 115December ! 108
1929 ', ,January i 116 jFebruary : 120March ! 121April 123May i 125June i 125July ; 119August ! 121September ! 123 !
October ! 120November j 108December | 95
1930 [January j 103February j 109March I » 106
Ad- jjusted I
Manufactures
Unad- : Ad-justed justed
Minerals
Unad- | Ad-justed | justed
106106107107106108107110112111108106
106108111109111 I108 !106 !107 I105 i102 \99 |100 !
106 I109 !110109109109110112114115113115
H7 ;i117 l|118 !|122 i|123 il127 |i124 j|123 i122 H117 jj106
103107
*104
84 :87 :67
10194105108106111119
10811111111010810610210811211210899
10411011311211310710210410610410195
106114115113111108106110116117115109
11612012512712712611912112211810792
102110
109108108107106108107111112110106103
1051071091091111091071071051029999
106 j110 I111110109 !Ill111113116115 I113 i115 I
11711612012312512912612412211710596
102 !106 |
*105 I
77 :89 ,70 '74 !1059699108107106115
90929896102109110115118124123113
1121131119610810810311111111210597
100999894104104103111115122117106
113116101104116116118121127127114110
107104
9295104107104106107109110114118119
11611711810710910599106104105101103
103103103105105101101105107114113112
118120107115116113114114118118110116
112' 109
Build-ing con-tractsaward-
ed
Unad-justed
64635781 i84 j95 !122 '130128 |135 ;117 !
Ill106146139134133:26148137126119131
9496151147135154130135127137114116
104113144157163158142126143145115105
100881181561431331591191081099577
7977
111
Fac-toryem- .
ploy- |ment
Fac-torypayrolls
101 '102 :103 1102 !101 I101 ;99 :101 I103 !103 j101 !100 !
10010010099999899101999795
96
10010099
971001011021021011011021031029895
93
10110610710510410499104105108105104
991051061051041029910210210398
9610110310010110198103104107104104
101108111111111109105109111110102
Freight car loadings* I Commodity: pricesf
Unad-justed
1071088290104961001019997100
Unad-justed
98118778110396101104102102107
Total
Unad- i Ad-justed j justed
84 ;.91 L
; Merchandise ini less-than-car-
load lotsJ
103 i107 !103103 ;106 !
94 ;969998 i106 I110 i111113122 :123 !113 i
97100102100105106104109116114101
9294979610410310510911911910895
95999810211010911111412111810290
102104104107107109108108109109109107
1051091081081061041011041041019795
100102102104105102102104106106104103
1041071031111111081081091081049997
Unad- ; Ad-justed justed
7287 •
9396 !99 !104107105 ;104 :104
102107107 ,108 ;108 :1 0 6 '•107 '112 i112 '110103
100 \104 i108 i108 :106 :105 i104 !105 i110 i109 !106 !
101 :105 !105 :106 |105 !104 |104 !109 '109.;106 ;100 I
97 ;ioi ;106 I107 i108 I10510510611010910696
9498101
107106106106105107106106107107108108
108109107107104104104104104105104103
106105104104104103104103104105104105
105105105106108104105105105105104101
102102100
Allcom-mod-ities
Farmprod-ucts
139 ;154 i98 i97 !101 i98 ;104 :100 ;95 ;98 '97 '
104 j102 ;100 j100 ]101 iioi ;ioo !99 '100 i99 i98 I98 !
97 i96 !95 I94 !94 ;94949597979797
99 I100 |
15815188949910011010099106105
107105102103102101999799989595
97959494969798102106105104104
106105104108110107107107109104102104
106105107105102103108107107104101102
1019895
* Average per working-day, except for annual indexes.t Wholesale price index of Bureau of Labor Statistics; 1926=100. Index numbers for all major groups of commodities are given on p . 286.v Preliminary.r Revised.i Note that this series has been substituted for more comprehensive series.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
286 FEDERAL RESERVE BULLETIN M A T , 1930
INDUSTRIAL PRODUCTION, BY INDUSTRIES[Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average=100]
Manufactures
IRON AND STEELPit, iron .Steel ingots . _.
TEXTILES,Cotton consumptionWool
ConsumptionMachinery activity 1Carpet, rug loom activity1.
SilkDeliveries . ...Loom activity*
FOOD PRODUCTSSlaughtering, meat packing_.
HogsCattleCalvesSheep .
FlourSugar meltings
PAPER AND PRINTINGWood pulp and paper
NewsprintBook DaDprFine paperWippping paperPaper boardWTood pulp, mechanical..Wood pulp, chemical
Paper boxes _Newsprint consumption
TRANSPORTATION EOUIPMENT:AutomobilesLocomotivesShipbuilding
LEATHER AND PRODUCTSTanning
Sole leather 1Upper leather-
Cattle. .._Calf and kip..Goat and kid..
Boots and shoes
CEMENT AND GLASS:Cementuiass, plate
NONFERROUS METAIS 1
Copper (.smelter)Tin deliveries) 1
FUELS, MANUFACTURED:Petroleum refining
Gasoline i____Kerosene _Fuel oil iLubricating oil i._
Coke (by-product)
BUBBER TIRES AND TUBESTires, pneumatic.Inner tubes..
T O B A C C O PRODUCTSCigarsCigarettes
MineralsCOAL:
BituminousAnthracite
Petroleum, crudeIron ore shipmentsCopper (mined)ZincLead.... "Silver
Jan.
117114118
116118991059389135144119
103981029095109100129
12211794124109112134101114141136
1501548
958894
7367117100
126141124132137
15918693134123137
14815311313186167
104110137
12910011194
Feb.
126114128
113115971019391132135126
101971048787106104108
12311690125114104135103114150137
1481721
988992
6773120104
115140
123132134
16018797138116139
15215711612995159
110110137
13610610091
Mar.
132116134
116117971009294144152128
9688869097105104111
1251199213211810213996114157138
1592849
998985
7386112105
9914ft
129140128
16018794136123142
15215711812693153
9077133
13511211293
Apr.
135117137
1201191011069695149159129
1029910093101119107111
1241199313511810313591115151132
1535362
979489
7693123100
110144
137147143
16519493141125145
161166126142109173
10295132
141116125103
May
145126147
1211251021099298138142130
979294869112511290
1271229313411910914392120150137
1485593
1019284
7896116106
111
137145145
168196103140126149
158163121142101178
1048613414313912012293
1929
June
155127158
1211221011079395149159128
9690908783117109102
12812092133120107136100118180142
16246129
11310697
74104153117
1161 U
126130137
170199110140126151
162167125139ICO173
1027613512612412211294
July
151131153
118119951098583146155127
969496889012410094
12412091138122101131103117152131
14259155
11410586
75111158120
1181fi4
127133123
17120595138123151
14114610513197160
1027214311912212511488
Aug.
143128144
1201191011148690150161130
9993948885126103112
12511995134118101129101120169135
14355175
11610393
80108136125
122168
122126121
176209108142131152
1191238713399163
988114512111912710791
Sept.
139121141
116115981068990148158128
9810110691991269984
12912094143119101125100120178148
13349101
11610594
87102144123
118174
126127131
1732089514112314811612090136100168
10310614012112512411989
Oct.
124118124
118117101109
£eoc
o00
OS
I-
158130
969710486881259199
126120941451199612891118156139
1135775
11310894
9799147117
113179
121125126
178215103142121146
1141178713599168
10211614010712311211594
Nov.
10010799
10810489948288144153128
9695101828812592106
122118921391209712985113144133
814569
10510395
8888145108
109149
119126113
17120993136110139
94977413096160
989213198118105114114
Dec.
909590
969077807475140148124
959196819111394110
118113931391169510791116125134
493297
939893
827015190
109117
114122106
16620190132115131
80827013383173
103121132
11610210587
Jan.
999499
10310278857269141145133
968989889611692127
'12111795140
' 11893
'12396115147131
10239169
'969399
766812997
108124
10511099
16319989121120132
'1061098513184167
99106132
1011039288
1930
Feb.
118101120
999476817370145149138
U929386921329793
p J2197
Ha92
'137111119151137
10340127
9593100
667512797
110
'16210392
16820496125126136
'107
1108513392167
91102135
959910698
Mar.
112102114
989471766566150155140
85808892141
90
91
125
153130
10948
979896
798013697
111
104103117
16820499117130135105
108841?887162
8169125
8896108»93
1 Without seasonal adjustment. > Includes also lead and zinc; see " Minerals." * Preliminary. ' Revised.NOTE.—The combined index of industrial production is computed from figures for 58 statistical series, 50 of manufactures, and 8 of minerals,
most of which are shown in this table. Adjustments have been made in the different industries for the varying number of working days in eachmonth and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relativeimportance. The sources of data and methods of construction were described in the BULLETIN for February and March, 1927.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 287
FACTORY EMPLOYMENT AND PAY ROLLS
INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS
[Without seasonal adjustment. Monthly average 1923-1925=100]
Month
JanuaryFebruaryMarchAprilMayJune _.JulyAugustSeptember...OctoberNovemberDecember...
Annual index.
Factory employment
1927
98.199.7
100.499.899.199.098.099.2
100.699.39G.995 598.3
1928
94.295.796.696.095.796. 295.798.3
100.3100.298.898. 197.2
1929
97.499.7
101.3101.8101.6101.2100.7102.0103.4102.198.294.8
100.4
1930
92.9 !
92.9 !92.7 :
i
!
Factory pay rolls
1927
98.6104.8108.3105.0104.3102.598.6
102.2101.9102.598.599.4
102.0
1928
95.7101.1102.5100.3100.8100 998.3
102.5104.2107.5103. 6104.2
101.8
1929
100.7108.0110.8111.3111.2109 2104 8109.4110.5110.0102.098.7
107.2
1930
94.297.498.0
; ; ; ; ;
no
100
90
80
\
FAC1
ft
"ORYE( 1923-
MPL0Y125=100 )
kMENT
r-; \
\
j 1;— . Adjusted for Seasonal Variations \ i
Without Seasonal Adjustment
|
PERCENT110
100
90
1923 1924 1925 1926 1927 1928
Seasonal adjustment provisional
1929 1930
FACTORY EMPLOYMENT: INDEXES BY GROUPS
Month
1928—November.December..
1929—JanuaryFebruary..MarchAprilMayJuneJulyAugustSeptember.OctoberNovember.December..
1930—JanuaryFebruary...March
Ironandsteel
97.797.197.198.399.399.7
100.7100.899.8
101. 0101.099.497.092.291.793.592. S
Paperand
print-ing
106.7110.4113.8116.7119.1120.8121.5119.4119.5118.7115.0112.1109.9109.3108.5
Lum-berand
prod-ucts
90.588.285.585.886.688.289.290.090.592.291.890.186.781.6
76.875.075.0
Transportationequipment
Group
90.289.994.099.0
100.5101.7101.597.696.495.594.890.282.981.383.283.983.2
Auto-mobiles
109.1107.7118.3129. 5131.1131.4130.0120.6117.8115.0113.1101.383.779.685.789.791.0
Leatherand
prod-ucts
88.6
91.994.192.790.690.389.494.698.199.599.394.490.091.492.491.5
Ce-ment,clay,andglass
91.889.584.384.586.890.593.193.891.693.893.691.988.982.374.775.378.4
NTonfer-rous
metals
102.2102.4102.4106.1107.9107.7105.3102.9100.599.898.698.593.689.985.984.684.3
Chemicals
Group
107.3107.8
Rubber
refining;
110.8 !110.2112.5
104. 0 i104.7 :
107.6110.9115.5119.0110.3107.9108.9111.2114.5116.1113.8111.8
104.0106.7109.2111.9114.4116.4120.0121.9124.0124.6123. 7120.9120.8 !
120.9 !113.5 :
109.8109.6 :
112.2 i112.3 '113.3 '114.3 i115.3115.0 i114.2 '111.5108.3 i102.7 i91.289.2 '89.7 '
To-baccoprod-ucts
98.995.784.192.092.091.390.391.490.593.093.795.096.180.2
84.288.989. 6
FACTORY PAY ROLLS: INDEXES BY GROUPS
Month
1928—November.December..
1929—JanuaryFebruary..MarchAprilMayJuneJulyAugustSeptember.OctoberNovember.December.
1930—January....February,.March
Ironandsteel
105.1 i103.3 |101.3107.2108.5110.5111.6 I109.9 I103.5 i109.3 I108.9 j107.9 !100. 0 i93.5 i90.5 j98. 1 'yr. l ;
Ma- TextilesFoodprod-ucts
110.3 i114.0 ;112.3 i120.7 j
126.5 j129.5 i131.9 :131.6 i128.2 i127.5 '127.9 •129.0 ;121.6119.9 !113.8115. 2115.1 i
96.7100.397.0
103.6108.8 I103.299.397.890.497.4
103.0104.896.293.892.294.196. 6
Paperand
print-ing
Lum-ber
i Transportation1,
104.9 i106.3 I102.2 !102. 5101.2100.4103.1105.6105.6105.0108.1108.8105.5105.5J02.5101.699. 7
111.7113. 7111.4113.0114.9113.3114.3113.6111.4112.8 |116.3 i117.8 i117.2118.2 :
114.9 I114.9 i115.0 !
and)rod-ucts
94.490.883.486.588.490.992.892.293.594.796.696. 889.282 772.872.674.6
Group
96.195.893.6
111.4113.9117.0116.0107.997.1
106.8103.399.889.485.680.989.890.6
Auto-mobiles
114.5112.4114.5147.4148.2152.0147.1130.9110.2128.0120.3108.084.372.974.092.797.3
! Leatherand
prod-ucts
Ce-ment,clay,andglass
j Chemicals jNonfer-i Rubber
Petro- prod-m e t a l s ! Group • leum ! u c t s
refining;
80.186.090.294.591.487.988.189.897.8
105.0104.3100.083.984.185.486.285.2
90.788.479.081.084.889.391.892.586.191.291.390.686.480.267.370.273.4
118.5120.5117.4124.1127.6127.0123.1117.0112.6113.2112.1112.599.696.191.591.791.0
108.2 i108.1 j106.3 i111.3 j113.6 i117.8 |113.1 !
111.2 ;
111.2 '113.0 I116.0118.2 :115.6 i114. 0 :109.3 !110. 0 !111.6 j
107.1107.2 !
105.3 i110.2 i112.1 '117.1118.9 j120. 0 1123.3 j125.1129.3129.4 i126.3 !124.8 :121.1 !125. 0123. 1 '
112.4114.1111.7123.3123.6124.4125.7120. 6115.1110.9104.9100.9So. 985.088.992. 1yo.0
94.194.376.382.384.486.186.188.587.990.693.494.294.388.877.080.081. C
To-baccoprod-ucts
NOTE.—These tables contain index numbers of factory employment and factory pay rolls for certain months, together with group indexes forimportant industrial components. The nature and sources of basic data and the method of construction were described and the indexes for theperiod January, 1919, to November, 1929, were published in the BULLETIN for November, 1929, pp. 706-716.
109492—30 3
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
288 FEDERAL RESERVE BULLETIN M A T , 1930
BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS
MILLIONS OF DOLLARSFEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS
( Weekly report date figures ) MILLfONS OF DOLLARS
1926 1927 1928 1929 1930 1926 1927 1928 1929Latest figures are for April 30; see table on following page
1930
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 289
FEDERAL RESERVE B A N K S - R E S E R V E S , DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES
[Averages of daily figures. Amounts in thousands of dollars]
Federal Reserve Bank
BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicago.St. LouisMinneapolis. .Kansas Ci ty . .Da l las . . .San Francisco
To ta l . . .
Total cash reserves Total deposits
1930
April
258,974903,055234, 241316,156109,888156, 704540,921124,44084, 568138,260
March
278,267
263,083912, 761222, 371307, 581109, 661158, 366540, 311120, 96384,011138, 07964, 744
280, 149
1929 1930
April ! April I March
194,933977, 439167, 097276, 07284, 315133, 015514,14183, 93986, 287102, 41771,077246, 203
149, 531970, 671138,696192,26668,29968, 212350,04980,68452, 77089,50764, 263183,091
145,896962, 762136,457188, 05865, 92065,922342,82178, 78652, 74089, 29563. 972180, 450
3, 209, 467 3,202,080 2,936,935 % 408, 039 12,373,079
1929
April
Federal reserve notes in circu-lation i
1930 1929
April
146, 369937,149135,926186, 37270, 24767,890346, 79481, 47652, 89191, 02368, 643182, 739
2,367,519 1,554,910
163, 789184,993146,422182,43472, 339128,852270, 38178,14159,85876, 58233,925157,194
March • April
162,250205, 347146, 422180,33576, 299131,943296, 36382, 26259,84379,04437, 440158,404
133, 368297, 621143, 096207, 75270, 247134, 773301, 67957, 77564,18766, 54337, 965155,898
1,615,952 1,670,904
Reserve percentages
1930
April
82.7
84.'478.179.587.278.475.183.265.281.8
81.0
March
85.478.178.683.577.180.084.575.174.682.063.882.7
80.3
1929
April
69.779.259.970.160.065.679.360.373.765.066.772.7
72.7
i Includes " F . R. notes of other F . R. banks" as follows: Latest month, $18,665,000; month ago, $22,792,000; year ago, $17,291,000.
ALL MEMBER BANKS—DEPOSITS SUBJECT TO RESERVE, RESERVES HELD, AND INDEBTEDNESS AT FEDERALRESERVE BANKS
[Averages of daily figures. In millions of dollars]
Federal reserve district
BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis,.Kansas Ci ty . .Dal las . . .San Francisco
Total.. . .
Net demand deposits
January,1930
1,3947,0801,1441,473
569571
2, 535699427850659
1,312
18, 713
February,1930
1,3426,8211,1301,471
559575
2,494682417833655
1,277
18, 256
Time deposits
January,1930
9513,2411,0801,623
562434
2,053536442354225
1,756
13, 257
February,1930
9563,2101,0971,636
563443
2,049531453359233
1,735
13, 265
Reserves held
Total
January,1930
149.9956.5133.8182.266.264.5
337.079.351.388.763.0
176.7
2,349.1
February,1930
145.3930.1133.1182.965.464.4
332.578.750.487.163.6
172.4
2,305.9
Excess
January,1930
1.914.01.82.01.42.46.81.62.83.82.13.9
44.5
February,1930
1.821.5
2.02.71.41.87.32.72.53.52.73.3
53.2
Indebtedness at Fed-eral reservejDanks $4
January,1930
23.9110.952.072.831.231.887.417.7
7.027.813.321.8
497.6
February,,1930,,
23.270.5-50. &53.322.425.763.016.7
3.022.811.915.0
378.3
DISCOUNTS OF FEDERAL RESERVE BANKS, BY WEEKS
[In thousands of dollars]
Dec. 31
Jan. 8Jan. 1 5 . . .Jan. 22Jan. 29
Feb. 5Feb. 12.Feb. 19Feb. 26
Mar. 5...Mar. 12. _Mar. 19Mar. 26
Apr. 2 . . . .Apr. 9Apr. 16 . . .Apr. 23Apr. 30
Total
632, 421
567, 615442, 336433, 223406,941
381, 422381,914376, 943342, 781
308, 616266, 338205, 634206,829
241,123226,164213,804211, 491233, 452
Boston
26,644
22, 44419,18022, 44026,456
22, 78720, 34523, 28923, 544
22, 65622, 70518, 36518, 575
19, 49215, 73113, 93713, 93213,737
NewYork
171, 759
131,17770, 62689, 65565,104
54, 72079, 29888, 78758, 404
39, 67933,14830,81036,858
53, 86762, 67443, 91634,12641,270
Phila-delphia
65, 777
56, 69549,81750,92750, 399
48, 97850, 55247, 05649, 710
38, 58338,42432, 49231, 297
31, 43427, 64926, 95027, 29729,581
Cleve-land
76, 719
78, 97077, 66965, 59058, 355
54,82754, 59049, 37446, 386
40,11934, 31825, 26326, 470
27, 83426, 09525, 52822, 87020,717
Rich-mond
38,939
32, 56129, 91824, 61025,676
22, 51121, 01522,95120, 906
18, 25716,68314, 70715, 304
14, 64813, 38015, 68716, 40218,931
Atlanta
29, 347
35, 62832,88428, 66826, 959
26, 52725, 38523,45724, 043
26, 26324, 31917, 76514, 534
16, 29715,19715, 67222, 05325,652
Chicago
112, 668
96, 91986,86573, 70477, 555
74, 79965, 93954, 07948, 497
49, 75638, 35824,17922, 685
22, 04919, 71124, 87922, 20623,298
Minne-apolis
17, 938 i 10,177
18,870 I16,44816,348 i15,067 |
14,32515,18917,82916, 449
14, 57414, 45012, 34112, 239
13, 35712, 62814, 51814,70316,118
9,2044,2385,6135,217
2,7282,4572,9972,571
2,5832,1902,2522,211
2,2852,3732, 4744,2633,681
KansasCity
29, 649
33, 27925, 81123, 68724,936
26, 55226,04318,93221, 009
20,74314, 72213, 27412, 698
12, 32212, 30811,88013,17815,099
Dallas
13,291
16,17012,94511, 40712,328
11,89611,09715,26511,068
11,1059,6345,8925,579
6,5797,1907,7807,5518,190
SanFrancisco
39, 513
35, 69815,935-20, 574
20, 77210,00412,92717,194
24,29817, 3898,2948,379
20,95911, 22810,58312, 91017,178
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
290 FEDERAL RESERVE BULLETIN M A Y , 1930
DISCOUNTS OF FEDERAL RESERVE BANKS |
[Averages of daily figures. In millions of dollars]
Federal reserve bank
BostonNew YorkPhiladelphiaCleveland- . ._ - , . _ . .RichmondAtlantaChicagoSt. LouisMinneapolis _ _ _ _ .Kansas CityDallas _ _ . .San Erancisco
Total
1930
April
15.653.728.325.716.018.822.713.93.1
12.87.5
13.1
231. 2
March
21 154.336.731.116.821 635.214.02.4
16.28 3
15.8
273. 5
1929
April
75 8264.6110,096.652.663 6
133. 451.819. 338.8IS 679.3
1, 001. 4
BANK DEBITS[Debits to individual accounts. In millions of dollars]
New York CityOutside New York City
Federal reserve district:BostonNew YorkPhiladelphia 1ClevelandRichmondAtlantaChicago . .St LouisMinneapolisKansas CityDallasSan Francisco ___
Total _
Numberof centers
1140
11
1013
152159
151018
141
March,1930
40, 74025, 014
2,61541,7152, 5052, 667
7641,0686,6351, 188
7301,348
7343,784
65, 754
February,1930
31,11721, 534
2,32931, 940
2, 2332,325
6541,0095, 4891,050
6641,222
6463,090
52, 651
March1929
55,42528,131
3,03256, 4722,8452,945
7781,2487,6501,358
7451,452
7694,263
83, 556
WEEKLY REPORTING MEMBER BANKS IN LEADING CITIESPRINCIPAL RESOURCES AND LIABILITIES BY WEEKS
[In millions of dollars]
Total
Loans and invest-ments:
Feb. 5 '•22,132Feb. 12. /22,10cFeb. 19 22,090Feb. 26. _.. 22,003Mai. 5 22,101Mar. 12 _ . . . 22,232Mar. 19 22,514Mar. 26 _ 22,563Apr. 2 '22,633Api.9 22,560Apr. 16 22,592Apr. 23 22,746Apr. 30 22,755
Loans:Feb. 5 '16,630Feb. 12 _._- '16,593Feb. 19 16,519Feb. 26 16,428Mar. 5 16,547Mar. 12 ! 16,704Mar. 19 j 16,847Mar. 26 1 16,885Apr. 2 ! ' 16,913Apr. 9 . . . ! 16,829Apr. 16.. . I 16,845Apr. 23 - 16,955Apr. 30.. . _ 16,964On secuiities—
Feb. 5 '7,692Feb. 12 j '7,682Feb. 19 i 7,669Feb. 26 ! 7,641Mar. 5 ] 7,737Mar. 12 j 7,883Mar. 19 ! 8,054Mar. 26 j r8,183Apr. 2 _J '8,244Apr. 9 I 8,163Apr. 16 ! 8,238Apr. 23 1 8,326Apr. 30 1 8,381
Federal Reserve District
Boston NewYork
1,4951,5081,4961,4851,4861,4901,5111,5191,5151,5171,5321,5271,513
1,1681,1811,1701,1611,1631,1681,1851,192 j1,1831,1821,1931,1811,166
503504504498505504518526530 .533 I552|551531
8,7798,7588,6948,775
9,0339,0419,1258,9989,0209,1889,251
6,5866,5596,4966,4226,5256,6516,7376,7526,8296,7126,7216,8686,926
3,3783,3803,3593,3433,4283,5433,6383,7553,8583,7433,7793,8943,998
Phila-delphia
1,2071,2071,2021,1961,2001,1921,2031,2091,2151,2171,2081,2141,206
i
9 2 4 '•
922 :914 !
909;914 ;907 i915 ;920923 '922 I913 '917 :
492488483 :477:481 •
473 :484482488 i485479484478 '
Cleve-land
2,1302,1292,1262,1282,1282,1172,1462,203
• 2,1862.1852,1682,1772,165
523523515518513509524556535534521529519
728 |727 •
723
ffi717727759
'734737728740731
Rich-mond
6506506 4 2 J642
648657652 !658 '658650652646
!495 i495 |486 j487 I493497495496496500492492 !4S9 j
192 |192 I185 j188 j192 I196 i197 |200 j199 I201196197201
At-lanta
621617618618616614628625626625619618613
497493494494495493499499497495489489483
158159159
'162159164167164162161160158155
Chi-cago
3,1513,1323,1603,1583,1923,2063,2143,2053,1973,2303,2573,2483,228
2,5022,4862,5112,5102,5332,5502,5692,5552,5432,5682,5902,5792,558
1,2371,2201,2471,2441,2541,2741,3011,2881,2681,2831,3041,2741,253
St.Louis
666669666662659665670666
'663668669664664
516520517512511515516
'511'510
513516511509
230233232233230233233
'229'228
232234230231
Minne- Kansasapolis City Dallas
362362364369370375 i376 :373 '374 ,370370 ;367366 j
248 !247 j248 |253 I253 i259259256253251252249254
85 ;86 i83 ;89 ;90 ;87:85:82 !8585 !91 !
655653656655652653645639642656658660655
SanFran-cisco
'466'465459459451452470466468470467462463
441441443443440439437431433441441440438
133136136138135136135130135147146143140
'362'360
353352345346355353355356356351352
'108'109
106106106108118116116121124119119
1,9391,9341,9441,9381,9241,9541,9601,9661,9631,9661,9741, 9681, 985
l,36d1,3651,3711,3681,3631,3721,3551,3641,3561,3531,3611,3501, H63
446446449444445446445447440437450450453
City
NewYork
Chi-cago^
7,5517,5257,4847,4127,4997,5957,7477,7567,8507,7247,7387,8857,947
5,6485,6115,5785,4995,5825,7005,7875,8105,8945,7805,7855,9125,969
2, 9212, 9122,9132,8902,9533,0653,1603,2803,3933,2843,3163,4093,511
1,7991,7861,8031,8151,8431,8471,8571,8541,8461,8651,8811,8721,863
1,4411,4291,4441,4541,4721,4831,4991,4951,4831,4951,5091,5001,492
849836850861868882905899882880894903890
i New series; for explanation see note on p. 277. r Revised.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 291
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued
[In millions of dollars]
Total
Loans—Continued, jAll other— j
Feb. 5 !Feb. 12 iFeb. 19 |Feb. 26. j
Mar. 5Mai. 12Mar. 19Mar. 26Apr. 2.Apr. 9Apr. 16Apr. 23Apr. 30
Investments:Feb. 5_. -Feb. 12....Feb. 19Feb. 26.. . .Mar. 5 . -Mar. 12Mar. 19 . . .Mar. 26Apr. 2Apr. 9Apr. 16Apr. 23Apr. 30U. S. G o v t .
securities—Feb. 5Feb. 12Feb. 19Feb. 26Mar. 5.Mar. 12Mar. 19Mar. 26Apr. 2Apr. 9.Apr. 16 IApr. 23 iApr. 30
All other—Feb.5Feb. 12 ;Feb. 19 !Feb. 26 jMar. 5Mar. 12 IMar. 19 !Mai. 26 !Apr. 2 ,Apr. 9 iApr. 16 IApr. 23 IApr. 30 '
Reserve with F. It. ibank:
Feb. 5Feb. 12 l
Feb. 19 iFeb. 26 j
Mar. 5 iMar. 12..Mar. 19.. _Mar. 26..Apr. 2Apr. 9 •Apr. 16Apr. 23. . . . _Apr. 30
Cash in vault:Feb.5Feb. 12....Feb. 19Fob.26Mar. 5 . . -Mar. 12.. _Mar. 19. . .Mar. 26Apr. 2.Apr. 9Apr. 16Apr. 23Apr. 30r Revised.
' 8,9118,850
' 8, 787' 8, 810
8,8218,7938,702
8,6668,6078,6298,583
r 5, 503' 5, 513
5, 5715,5755,5545, 5285, 6675,678
' 5 , 7L95,7315, 7475,7915,791
' 2, 725' 2, 744
2,8082,8012,7662,7532, 8612,844
' 2, 8482,8382,8492,8732,852
'2,7782,7692, 7632,7742,7882, 7752,8062,8342,8722,8932, 8982.9172.940
'1,702' 1, 688
1, 6951,7311,6831,7331,6531,719
' 1, 7381,7141,7461,7271,774
222225232221218222212212 |207216207 i221 1214 I.
Federal Reserve District
Boston
677666663658664667666653648641630635
327327326324323322326327332336339347347
164164164162162158157155157157159160158
163163162162161164169172175179180186189
991019S979710197
NewYork
3,2073,1793,1373,0793,0973,1083,0992,9972,9712,9692,9422,9742,928
2,2042,2202, 2622,2722,2492,2182,2962,2892,2972,2862,2992,3212,325
1,1921,2101,2621, 2561,2251,2091.2671,2461,2441,2281,2411,2481,238
1,0131,0101,0001,0161, 0251,0091, 0291,0431,0521,0581,0581, 0731,087
809800805845788818778814826813824811849
61626361616158595860575959
432434431432434434430439435437434433430
284285288287286284289288292294295297
7878
2032042072062072082092102L4217217219220
Cleve-land
795796792795794792796797
'801798793789787
607605610611615608623647
'651651648648647
289289293294298296308329
'326323320317317
318316317316317312314319
'325328328331330
129127131124129130121130
'133129132120130
26272826272727262627262927
Rich- i At-mond ! lanta
Chi-cago
303 :302 i301 j299 I301301 •298 j
295 :296 '298 '296 ;295 I288 ;
154 '155 I156 j155 |155 j152 I162156162159158159157 !
339335335
'332336328332335335
1,2651,2661,2641,2661,2791, 2761,2681,2661,274
334 1,285 !329 ! 1,2""331329
125124123124122122129126129130130129129
1,3051,305
649646649648659656644650655662667670670
S61 i§J I59 i58 |666252 !64 j62 j63 j
64 !636363636363646760686767
40 i39 ;40 ;39 ;40 I40 j4 0 •
40 i394040 ,40 ;
41
109
991099y9 :
9109
287285294293302305293293295298300316316
361361355355357350352357360364366353353
245243239246249257244251259253263269281
37363535353634333334323535
St.Louis
285288284280
'280282283
'283'282282282281278
150149149149148150154154153154153153155
37373636343638383838404040
113112113113114114116116115117114113115
Minne-apolis
162158163167170170169169168170166163163
114116116116117116117117120119118118112
KansasCity
308306307304304303302300298294296297297
214212213213212214208208209215216221217
121117120117119119118118119120121124122
52535355515755555455 j58 I5656
10 i111011101111111011101111
Dallas
'254'251247246239238237 i237 I239235232232233
'104'105
106106106106115 i113113113111110111
67
40' 4 1
4141 !41 !41 i
Si41 ]41 '.42 !42 I
• 44 j
SanFran-cisco
922919922924918926910917916916910900910
571569573571562582605602607612613618622
323323325322315325348346348350349351350
248246248248246257257256259263264267271
3332 i34 '33 j3734 '
3339 i
33333334 j
34
1081141101091021089710310510510510699
15
CityNewYork
2,7272,7002, 6652,6092,6292, 6352,6272,5302,5012,4962,4(182,5032,458
1,9031,9141,9051,9141,9171,8951,9C~1,9461,9561,9441,9531,9731,977
1,0961,1101,1141,1081,1021,0971,1461,1201,1181,1021,1141,1201,112
803792805'815798814826838842840853866
74774274378272375571375175875275:745782
49495049484846474647454747
Chi-cago
592593593593604601593596602615616567601
357357360360370364358358362370372372372
153151160K01681671601571581591611(2163
204206200201203196198202204210210209209
170169165171J74177168174181173181181192
16151414141414131314131313
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
292 FEDERAL RESERVE BULLETIN MAY, 1930
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued
[In millions of dollars]
Net demand depos-its:
Feb 5Feb 12Feb. 19Feb. 26Mar 5Mar 12Mar 19Mar 26Apr 2Apr. 9 _Apr 16Apr 23Apr. 30
Time deposits:Feb 5Feb. 12Feb 19Feb 26Mar. 5Mar 12Mar 19Mar 26Apr 2Apr 9Apr 16Apr 23Apr 30
Government depos-its:
Feb 5Feb 12Feb 19Feb 26Mar. 5Mar. 12Mar 19Mar. 26Apr. 2Apr 9Apr. 16Apr 23Apr 30
Due from banks:Feb.5Feb 12Feb 19Feb. 26Mar. 5Mar 12Mar. 19Mar 26Apr. 2Apr 9Apr. 16 . . .Apr. 23Apr. 30
Due to banks:Feb 5Feb. 12Feb. 19 _Feb. 26Mar. 5Mar 12
" Mar. 19Mar. 26. -Apr. 2Apr. 9Apr. 16Apr. 23 . . .Apr. 30
Borrowings from F.R. Banks:
Feb 5Feb 12Feb. 19Feb 26Mar. 5Mar. 12Mar 19Mar 26Apr. 2Apr. 9Apr 16Apr. 23Apr. 30
Total
' 13,010' 12,978
12,966' 12,943
12,94013,15213,07613,205
' 13,32913,20813,38313,45513, 581
' 6,863' 6,856
6,8516,8746,8876,9486,9757,085
' 7,0877,1027,0687,0347,055
18945
28023821717314110896
r 1,110' 1,131
1,104' 1,082
1,0981,1131,219
'1,204' 1,232i 1,130
A 1,1941,1551,188
' 2,8992,8482,7342,790
I 2,9102,8272,9332,9223,0612,9542,961
1 2, 7972,930
173185186152128' 9 6
51478275655874
Boston
901916901879887893897891917899919908924
478,77478479474475478488477492491491477
1
201715121087
543842484544585067526259
' 65
135129115108115114119119139128134126124
5568674454323
NewYork
5,8715,8025,7855,8165,7875,8715,8775,9206,0295,8965,9796,1206,252
1,7991,7871,7901, 7961,8101,8671,8761,9211, 9331,9291,9041,8911,909
4211
1089284C7554236
114120116111117119158148171146146169193
1,013972904965
1,006958
1,0441,0451,1061,0411,042
9601,096
174758259649
2738221217
Phila-delphia
704703699686714706701700725723711711705
29529629729728528729329228b286297299302
11
18161411976
58555857575773586559675864
172176170165172169171162187173173165165
11141216895454444
Cleve-land
1,002'996
1,002998
1,0091,0151,0151,043
' 1,0401,0361,0421,0421,036
942948946950916940948982
'981983966965969
21
232018141298
908793949497
10099
' 1061101069999
209209203210211208216231
'234236237226225
3334313023201214151313107
Federal Res<
Rich-mond
351353345346354353347351351354347346342
239240239239240240241241245246246247241
16141310869
51504948504849525752515155
102929498
100939698
10599969496
97987
' 65443547
At-lanta
332330330330327331319324328329337328327
2*2240241241243243241244243242244244243
21
242018141298
73766870747377797875746567
119113109111115110109110113116112102100
151412121412734238
10
erve District
Chi-cago
1, 7751,7661,7971,7951,8121,8491,8351,8351,8511,8671,9061,8991,900
1,1771,1771,1741,1831,1961,2001,2011,2091,2101.2081,2101,1881,193
211
1412108755
210232225211209202229213226188214192196
423433431436460451471468477455456451454
453628242617633286
St.Louis
370373370372367379378378377380386375372
229229229229230230231231231231229230231
4332211
5964585458545754
' 5 957565551
137134129124126121125119126125124116113
4465333222334
Minne-apolis
208210211216225230225222222222222218223
133134134134130131132133133131131131131
11111
51524949515347485049494655
77767375828180818079767480
1
11
KansasCity
471476479482474489479479480486498490484
174173174175176176177180178178177178178
4332211
116124117119125121131131130115130118115
205201200205211199198190195191196187180
14158
101053322224
Dallas
'287'286
290284281282284333286289295289287
' 1 4 5'146
144143143143144145146148146146i50
21
1
19161411976
' 6 2' 5 9
6762646772
1147270716868
1001009895968889899191889083
76
106652111211
SanFran-cisco
739766757740701753719727723728742729728
1,0101,0081,0061,0091,0151,0151,0141,0201,0241,0271,0251,0251,030
421
30252318151110
171176163159154175168158152156168174159
206213208198215233214212206220226206215
11258
168
113313
City
NewYork
5,3005,2185,1995,2265,1865,2765 2785,3205,4265,3005 3665,4855,625
1,2411,2231 225L 2301,246L 295L 304I 351L 368[ 368
2441 334l' 344
2
99857761503833
777678747782
112107122105102125147
950911844904943897982983
1,039975975891
1,030
113737
121
153116m
8 12
Chi-cago
]. 188
1
, 1771%
L 218931917
, 941
9fi71,2521,258
507508501511521525523530532528529532538
21
1087
543
129152145130124119136117133104123116116
303315314314330327341338346333331321328
32111
7
•• Revised.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 293
BUILDING CONTRACTS AWARDED[Value of contracts in thousands of dollars]
Federal reserve district
Boston 28,102New York _ 105,493Philadelphia 25,511Cleveland 60,012Richmond _ 43,220Atlanta _ 20,898Chicago i 73,812St. Louis _-. | 23,705Minneapolis . . . _i 15,131Kansas City . . ._ ! 35,974Dallas 24,260
1930 ; 1929
March February March
Total (11 districts). 456,119
17,96190,31217,74335,99228, 70719, 52637,983 ;24,510 !4,980 |
18,071 I21,267 i
30,044113,46635,39947,07832,979
107,28938,7958,343
22,85423,204
317,053 i 484,848
Figures for building contracts awarded are for 37 States east of theRocky Mountains, as reported by the F. W. Dodge Corporation.
INDEX OF DEPARTMENT STORE SALES[Monthly average 1923-1925=100]
Federal reservedistrict
Num-ber ofstores
Without seasonaladjustment
With seasonaladjustment
1930
Mar. | Feb.I
Boston j 36New York \ 60 103 ,Philadelphia ! 57 83 !
Cleveland 55Richmond l 28Atlanta 41 I 93Chicago 97St. Louis . . . _ 19 93Minneapolis 18 87Kansas City i__ 27Dallas 22 iSan Francisco 36 j 112
Total 496 \ 95 83
1929 1930 1929
Mar.
10111199 •
105114113 j12011092 ;102115115
Mar.
971158895
10310110610098
106120
Feb.
1031149098
107103
* 112102' 8 9
107117
Mar.
10411598
10711511712411196
116116
110 104 i 106 ! 113
i Monthly average 1925=100. r Revised.
COMMERCIAL FAILURES1
[Amounts in thousands of dollars]
Federal reserve district
BostonNew YorkPhiladelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis..Kansas City..DallasSan Francisco.
Total . . .
Number Liabilities
264 |416 !132 !16912620433313310112466279
283563123168145933761024811542204
2,347 i 2,262
200310771941401013661233911949
5,02011,4012,0545,263
3,65915,8542,4201,1001,827926
4,684
1,987 56,846
6,12413,4663,7573,0232,4181,8448,8456,030522
1,2311,3592,706
51, 326
3,0177,2261,5844,1412,1682,9836,3291,988541
1,707559
4,113
36,356
i Figures reported by R. G. Dun Co.
BUILDING PERMITS ISSUED[Value of permits in thousands of dollars]
Federal reserve districtNum-ber of 'cities
1930 1929
I
BostonNew Y o r k . . . .Philadelphia..ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis. .Kansas C i ty . .DallasSan Francisco.
T o t a l . . .
14 !22 I1412 i151519 i5
20 ;
March
7,31944,61011,02015,85012,126
15, 5033,0852,0358,0225,840
19,905
168 '• 151,944
February March
4,07630,2314,2419,6396,0113,179
15, 7292,6701,0836,5014,614
14,144
102,118
12,572188, 51714,80816,10413,0137,595
44, 2795,9522,5459,1547,371
30, 729
352,637
INDEX OF DEPARTMENT STORE STOCKS[Monthly average 1923-1925=100]
Federal reservedistrict
BostonNew YorkPhiladelphiaCleveland .Richmond..AtlantaChicago . .St LouisMinneapolisKansas City J
DallasSan Francisco
Total
Num-ber ofstores
343445492829791914212132
413
Without seasonaladjustment
1930
Mar.
951078592
10094
1138873
11682
108
100
Feb.
87
869190
10582
'6911377
104
93
1929
Mar.
991079097
1001011139178
12283
106
102
With seasonaladjustment
1930
Mar.
9310581909791
1098670
80106
97
Feb.
9310883909692
M0988
' 7 2
80109
98
1929
Mar.
9710585939799
1099075
80104
99
i Monthly average 1925=100. ' Revised.
BANK SUSPENSIONS1 IN MARCH, 1930[Amounts in thousands of dollars]
Federal reservedistrict
BostonNew YorkPh iladelDhiaClevelandRichmondAtlanta -ChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco
Total
All banks
Num-ber
1
248
279
158
• 1
75
De-posits 3
2,707
1,186626
2,1666,3192,6291,7096,282
85
Memberbanks 2
Num- De-ber posits3
1
1 5262 9642 7052 3253 ! 5,728
23,709 || . 10 8,248
Nonmemberbanks
Num-ber
1
247
257
135
1
65
De-posits 3
2,707
1,186626
1,6405,3551,9241,384
554
85
15,461
1 Banks closed to the public on account of financial difficulties byorder of supervisory authorities or directors of the bank.
2 Includes 9 national banks with deposits of $7,722,000 and 1 Statemember bank with deposits of $526,000.
3 Subject to revision.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
294 FEDERAL RESERVE BULLETIN MAY, 1930
FOREIGN BANKING AND BUSINESS CONDITIONSANNUAL REPORT OF THE NATIONAL BANK OF BELGIUM
The annual report of the National Bank ofBelgium for 1929 was submitted to the generalmeeting of shareholders on February 24, 1930.Selected sections of the report are given here-with.1
The favorable developments which had theirorigin in our currency stabilization have con-tinued and strengthened during 1929, and threeyears of great prosperity have now followedthe return of this country to sound money.
From the standpoint of currency, all thosecountries which have reestablished the convert-ibility of their bank notes in gold or gold ex-change have benefited as a result of the reformwhich they had the courage to accomplish. Atthe same time that the international flow offunds on a stable basis has been assured, theinterdependence of the great markets of theworld has again become evident and calls forconstant attention. During almost the entireyear the money market has been influenced bythe withdrawal of capital in large volume forinvestment on the New York stock exchange,where excessive speculation and high rates ofinterest proved attractive to holders of funds.On the other hand, the advance in most Euro-pean exchanges reacted on the American mar-ket. Ultimately, the speculative crash in theUnited States brought about a considerablerelease of funds and a return to more moderateconditions for short-term credit. In Belgiumthe amplitude of the gold and gold exchangereserves and the prosperity of the export indus-tries kept our money market from experiencingthe ill effects of these disturbances.
Gold policy.—Our policy in respect to goldhas been to secure the demand liabilities of thebank in such manner that the metallic reservein and of itself shall constitute a sufficient coyer,and that under these circumstances the holdingsof foreign exchange shall form a supplementarymargin of security. The results of this policyare clearly indicated in the following table,which shows the reserve ratio of gold alone forthe past four years: Per CGnt
Dec. 25, 1926 30. 90Dec. 25, 1927 32. 86Dec. 25, 1928 36. 17Dec. 25, 1929 40. 48
1 In addition the report contains discussion of the international situa-tion, commerce, industry, and agriculture, the position of labor, and thegrowth of savings, as well as details of bank operations and a number oftables. For earlier reports see FEDERAL RESERVE BULLETIN, April,1929, 1928, 1927, 1926, etc.
Under these circumstances the bank is in aposition to exchange its notes for gold at anytime, although up to the present and at theexisting level of exchange only jewelers havehad any occasion to demand metal. Thissituation, however, might change; therefore inthe revision of our by-laws we took pains toelaborate in chapter 3 the provisions whichdefine the methods of note convertibility.2
The gold added to our reserve during 1929came partly from the United States, partlyfrom the London market, and partly from theCongo, in the following proportions:
Francs
Gold from the United States ' 11,179,500,000Gold from England .._!• 175,000,000Gold from the colony | 96,225,000
1, 450, 725, 000
Dollars
32, 790,0004,865,0002, 675, 000
40, 330, 000
1 It should be noted that these figures do not agree exactly with thosegiven above and published in the weekly balance sheets of the bank; thedifferences, which are of minor importance, are due to (1) sales of gold toindustries, (2) imports of gold coin, and (3) purchases of gold by theTreasury. It should also be noted that Belgian customs statistics do notinclude gold imported for monetary uses.
As the gold output of the Congo is turnedover to us under contract and so comes to usregularly, we left on deposit with the FederalReserve Bank of New York part of the goldwhich we acquired in the United States, andwaited until we could replace it by goldimported from the colony. But in Marchand April last the opportunity arose to transactan important operation with the Reichsbank,which consisted in transferring to the Reichs-
2 ART. 160. Notes are payable at sight at the offices of the bank inBrussels according to the terms of the royal decree of Oct. 25,1926, relativeto currency stabilization.
Notes are likewise redeemable on demand at the branches and theagencies in the Provinces. Such payment, however, may be postponeduntil the necessary funds can be received.
ART. 161. The bank shall redeem its notes in gold and on demandat its wickets at the legal parity of 0.209211 gram of fine gold per belga.
Gold payments shall be made in the form of bars or bullion of theweight generally used in the principal money markets of the world(about 12 kilograms).
ART. 162. If the bank makes use of the privilege reserved to it byarticle 8 of the royal decree of Oct. 25, 1926, it shall itself determine onwhat market it will deliver bills of exchange. Only banking centersshall be selected in which the bank of issue redeems its notes in gold andon demand.
The rate of exchange to be used is the actual parity, increased at dis-cretion by a commission not to exceed the difference between parity andgold export point, allowing for costs of transportation, interest, andinsurance to its destination in the foreign center in question.
ART. 163. For purchases of gold at its wickets, the bank may deductfrom the legal parity a commission equivalent to the costs of minting.
ART. 164. The provisions of articles 46 and 47 of the present by-laws,relating especially to the assay certificate for bullion, are applicableto the operation provided for in the preceding article.
These regulations were approved by the Minister of Finance Apr. 10,1929.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 295
bank against gold bullion which the Reichs-bank shipped to us from Berlin dollar balanceswhich we held in New York. This interestingclearing operation made it possible—to theadvantage of both banks—to save the greaterpart of the costs which would otherwise havebeen incurred by the double shipment of goldbetween America and Europe. This is a con-spicuous instance of cooperation between banksof issue, and it is because of this feature thatwe call attention to it.
On the whole gold is now distributed amongthe central banks of the world in a far morenormal proportion than in the years immedi-ately following the war. This new distributionis more in line with the needs of the generaleconomic situation and gives the Europeanmarkets a certain independence in performingtheir economic functions.
Note circulation.—Turning now to the cir-culation, we find that the monthly average ofnotes in circulation rose from 11,925,922,000francs ($331,541,000) in January, 1929, to13,401,947,000 francs ($372,574,000) in De-cember, 1929, an increase of 1,476,025,000francs ($41,033,000). This advance is duechiefly to the influx of foreign exchange. Thebank, in other words, has never tried to acquiregold, as is sometimes thought. It has merelytaken up the volume of gold exchange whichhas come into the country in excess of the needsof the market. It has done this systematicallyat a rate corresponding to the gold importpoint or slightly lower. Being in possessionof these foreign bills, and finding that themarket was not repurchasing them, the bankconverted them into gold in the considerableamount noted above. It may be said, there-fore, that the greater part of the additionalcirculation was issued against 100 per cent ingold values.
This influx of foreign exchange came from thesurplus in our balance of payments, whichthroughout the year was influenced by a largevolume of exports sold at favorable prices.The loans floated abroad and the purchase ofBelgian securities by foreign investors aidedthis movement, but to a less extent than duringprevious years. Likewise the participation offoreign markets in capital increases, which havebeen numerous in Belgium during 1929, wereby no means negligible. Nevertheless, a certainbalance has been struck through the purchaseof foreign securities by our own nationals.All these economic phenomena are normal incharacter.
This is not to say that the increase of ourcirculation, however adequately covered it may
109492—30 4
be, need not be a matter of concern to the bankof issue. By no means is this the case, and thebank has neglected none of the expedients atits disposal to keep the circulation withinprudent limits. Furthermore, it has continuedthe policy which we described in our annualreports for the years 1927 and 1928, andthe Government has seconded these effortsby continuing to redeem the balance of thedebt which it contracted through the with-drawal of German marks.
Discount rates.—From July 1, 1928, untilJuly 31, 1929—that is to * say during 13months—our discount rate stood unchangedat 4 per cent. This reasonableness and thisstability of the cost of short-term money wereexceedingly helpful to commerce and industry.They were maintained in our domestic marketin spite of large international movements ofcapital and in face of a general tension in inter-est rates resulting from successive advances inofficial rates in London, in New York, and inmost foreign banking centers.
This independent policy, which would cer-tainly not have been possible for us before thewar, shows the advantages offered by our pres-ent position, and especially by the amplitudeof our gold reserves. The result was of coursea very considerable increase in our portfolio ofdomestic securities. Thus, in one year, fromJuly 1928, to July, 1929, this portfolio wasincreased by about 1,500,000,000 francs ($41,-700,000) to the great advantage of Belgianindustry. On the other hand, we find as inprevious years that our portfolio of commercialsecurities is smaller than it was before the war.Toward the end of July, 1929, however, redis-counts threatened to increase too rapidly, andthe situation of the international money marketdemanded prudence. Under these circum-stances our discount rate was raised to 5 percent. Subsequent events were not slow injustifying this decision. Demands on thebank for credit at once assumed more moderateproportions. Some weeks later a financialcrisis of exceptional violence occurred on theNew York stock exchange. As a result of theenormous liquidation which took place in thatmarket the tendency toward higher money rates,which had been noticeable up to that time, wascompletely reversed. On November 13, 1929,our discount rate was lowered from 5 to 4V2 percent, and later, on December 31, to 3% per cent.
In lowering its rate of discount at the end ofthe year to %}{ per cent—the lowest rate existingat that time—the National Bank strove to giveits support to the commerce and industry of thecountry at a time when the situation of foreign
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
296 FEDERAL RESERVE BULLETIN MAY, 1930
markets and the high level of net costs of pro-duction at home made exporting more difficult.
The private rate of discount has been con-stantly held very close to the official rate. Ingeneral, money has been abundant and the ratefor call money not very profitable.
Securities market.—The stock exchange andpublic securities play so large and so importanta part in the modern world that they are aconsiderable factor in the money market. Dur-ing all of 1929 the Belgian stock exchanges,sobered by the crisis which took place aboutthe middle of 1928, were quiet and often inac-tive. The volume of shares issued, neverthe-less, was fairly large.
The margin, nearly always considerable,between the issue price and the market quota-tion was favorable to investment in securities.During the excessive speculation which char-acterized the year 1928, huge issues were floatedone after another. The purchasing power ofthe public became exhausted, bringing about adecline in quotations. Thereafter the positionof the stock exchange was at the mercy ofchance. In October the decline was accentuatedunder the influence of the inactivity of foreignbourses; shortly afterwards the downwardmovement was hastened by the debacle whichoccurred in the New York market.
In order to appreciate the movement as awhole and its results, it will be sufficient toglance through the following table, which gives,month by month for 1928 and 1929, the indexof the Brussels stock exchange as it is publishedperiodically in the bulletin issued by ourEconomic Research Service. It should alsobe remembered that the base for this table—that is, the quotation on January 3, 1928—wasalready at a very high level.
INDEX OF THE BRUSSELS STOCK EXCHANGE
[120 securities with variable yield. Base January 3,1928=100]
January.. .February.MarchAprilMayJuneJulyAugustSeptemberOctober.. _NovemberDecember.
The fluctuations are wide, and there is nodoubt that our financial market and the publicsuffered great losses. Such happenings confirmonce again those truths of experience to which
1928 1929
10010710fi12112512411 f)103119111110107
1081171141121041029799103hO8575
we have called attention from time to time,that a movement on the stock exchange whichoverlooks essential considerations, such asbusiness profits and investing capacity, bearswithin itself the seeds of a depression theseriousness of which will be in proportion tothe extent to which the principles of soundfinance have been disregarded.
In contrast with the weakness of the stockmarket, the market for rentes remained strongand steadily improved, as did also the bond mar-ket. Thus, in the course of the year the BelgianCommunu al Credit Office was ab] e to p] ace about9,000,000 francs ($250,000) of 6 per cent bondsissued almost at par. At the time of waitingthis report the price of securities with fixedyield has still further improved. The returnof investors to this t}^pe of securities is also inevidence on foreign markets. It is facilitatedby the decline in the rate on short-term loans.This revival was necessary in the publicinterest as well as in that of industrial enter-prises, to which the bond market has beenpractically closed for a long time, althoughthey were in a position to offer investmentswhich were both safe and profitable.
Banking situation.—The general situation ofthe Belgian banks, which is always thoroughlysound, was strengthened still further duringthe year under review by a large volume ofbusiness and by important increases of capitaland reserve. The following table gives a sum-mary of the balance sheets as of December 31,1927, and December 31, 1928.
P O S I T I O N OF THE P R I N C I P A L BELGIAN C R E D I T I N S T I T U -TIONS ON D E C E M B E R 31
[In thousands of francs]
Resources:Cash funds: Cash on hand, at National
Bank, postal checks, coupons, foreigncurrency
Commercial bills discounted (exclusive ofrediscounts)..
Securities and participationsDebits in current account, banking corre-
spondents, acceptances, loans and securi-ties, advances, accounts carried forward.
Liabilities:Paid-up capital _ReservesAggregate capital and reserves _Miscellaneous liabilities: Credits in cur-
rent account, correspondents, accept-• ances, bills payable
Percentage of—Cash funds to miscellaneous liabilities ,Bills discounted to miscellaneous liabilities.!Debits in current account to miscellaneous
liabilitiesCapital and reserves to—
Miscellaneous liabilitiesSecurity investments and participa-
tions
19281
3,194,235
5,066,1984,168,076
16,574, 704
2, 703, 9282,190, 2684,894,196
23, 858,613
13.3921.23
69.47
20.51
117.42
1927 2
2, 620, 046
4, 392,8813, 356, 306
13,171,854
1,876, 2431, 091, 6372,967, 880
20,316,729
12.9021.62
64.83
14.61
88.43
1 58 banks; decrease from preceding year due to amalgamations.2 62 banks.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDEKAL RESERVE BULLETIN 297
It will be seen that the participation of theBelgian banks in industry and commerce, rep-resented by their portfolio of securities andparticipations, is considerably less than theaggregate of their own funds—that is, than theaggregate of their paid-in capital and reserves.
Conclusion.—Belgium has closed the one-hundredth year of its independent existencewith an economic situation which on balanceis favorable. It is her duty to maintain thisposition. The depression and the difficultiesnow prevailing in most foreign markets, if theypersist and are augmented, may give Belgiumalso reason to fear a cycle of business depres-sion. The country is in a position to withstandsuch a period, provided it uses prudence anddoes not neglect the lessons of the past.
The concern for international markets domi-nates our industry as well as our labor. In thisconnection we should realize that foreign com-petition is rapidly winning back the advantageswhich we were able to gain as a result of varioustemporary causes; consequently a great efforton the part of commercial organizations and arigorous supervision of costs of production areimperative if we wish to maintain our position.On this point employers and workers are inentire agreement.
The same necessity for prudence exists inthe matter of public finance. The excellentsituation of the treasury, it is true, justifiessome important tax reductions which the Gov-ernment has submitted to Parliament. Taxreductions, moreover, will permit a corre-sponding increase in savings which can be madeavailable to business enterprises. The sameprinciple applies to the amortization of thepublic debt, which ought to be very greatlyreduced because its service constitutes a heavycharge upon the country. In this connectionthe repayment of certain foreign loans whichare especially burdensome is particularly to berecommended.
To imagine, however, that the country is ina position to expand its public expenditures,whether these are made by the Government orby local administrations and authorities, oreven by endowed institutions of the civilservice, would be a grave error. Our publicdebt has been only partly reduced, and even
the most useful ends do not justify its beingincreased to any considerable extent, since theresources arising out of German reparationshave already been allocated to new expendi-tures.
BALANCE SHEET OF NATIONAL BANK OF BELGIUMDECEMBER 25, 1929
RESOURCESReserve:
GoldForeign exchange on gold standard coun-
tries..
Subsidiary coin _Belgian and foreign billsAdvances on Belgian public securitiesBelgian treasury bills and other public securi-
ties (royal decree of Oct. 25, 1926)Public securitiesPublic securities in the surplus account of the
bank. . .Public securities in amortization account of
real estate in use, furniture, and fixtures.—.Insurance fund assetsBills deposited for collection in current account.Real estate in use _Furniture and fixturesProvision for the manufacture of bank notes,
and labor involvedInterest earned or receivableAssets held in pledge or to be liquidated (art.
34 of the statutes)
Total resources
LIABILITIESBank notes:
IssuedHeld by the bank..
In circulation _
Current accounts:Treasury.. _ _Individual
Bills deposited for collection in current account.CapitalSurplusAmortization account of real estate in use,
furniture, and fixturesInsurance fund...Interest and rediscountTaxes payable to the Government:
Profits on discounts and advances in ex-cess of 3H per cent
Tax on fiduciary circulationShare of the Government in profits on
foreign exchangeShare of the Government in profits (art. 38
of the statutes)
Unpaid dividend for second half year of 1929..
Total liabilities
Francs" (inthousands)
Dollars i (inthousands)
5,875,239
2,796,100
8,671,33911,446
4,038,570166,099
1,687,716186, 721
73,697
34,69276,09255,82296,3624,700
3,6556,191
3,511
15,116,614
14, 747,0921,309,611
13,437,481
151, 745923,453
1,075,198
55,822200,00076,693
39, 70276,36019,974
20,2288,055
76,008
15,038
119,32916,026
15,116,614
163,332
77,732
241,063318
112,2724,618
46,9195,191
2,049
9642,1151,5522,679131
102172
420,242
409,96936,407
373,662
4,21925,672
29,891
1,5525,5602,132
1,1042,124
555
562224
2,113
418
3,317446
420, 242
* Converted at par of exchange: 1 franc=$0.0278.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
298 FEDERAL BESERVE BULLETIN MAY, 1930
ANNUAL REPORT OF THE GERMAN REICHSBANK
The annual report of the German Reichsbankfor 1929 was presented to the genera] meetingof shareholders on February 15, 1930. Themain section of the report dealing with finan-cial and economic conditions is given here-with: x
For the Reichsbank the year 1929 was espe-cially noteworthy because of the successfulrecovery from the currency disturbance whichtook place in the spring in connection with thenegotiations of the experts at Paris. The oc-currence strikingly revealed the dependence ofGerman credit upon political factors, as wellas the grave dangers arising from large foreignindebtedness. Even though the actual diffi-culties were overcome within a relatively shorttime, nevertheless the checkered course of theParis conference and its unsatisfactory outcomefor Germany prevented the material andpsychological relief which all countries hadhoped might follow from it. In Germany, atall events, there remained a lingering economicand political unrest which, accentuated by thebankruptcy of some well-known firms as wellas by the financial embarrassment of manypublic bodies, still persists.
Business recession.—The business recession,which had begun as early as 1928, was moresevere during the year under review. The ex-ceptionally long and rigorous winter, the repa-ration payments which had risen to their maxi-mum amount, the continued advance in ratesof interest—already abnormal—credit difficul-ties, high unemployment figures, and oppressivepublic charges, combined with inadequate busi-ness profits—these were some of the additionalfactors which characterized the economic situa-tion during the year. That figures of productionand sales were comparatively slow in showinga decline, and that the decline when it camewas comparatively slight, was due partly to thestrength and determination of German enter-prise to withstand the difficulties against whichit had to contend, and partly to an increasedcapacity on the part of foreign countries toabsorb German products, which compensatedto some extent for the reduction of internalpurchasing power. Some of the exports, how-ever, were effected at sacrifice prices. Whileprices controlled through cartels and similarorganizations in general maintained their level,prices not thus controlled declined in all groups
1 In addition the report contains several charts and tables, as well asdetails of banking operations. For earlier reports see Federal ReserveBulletin March, 1929, May, 1928, 1927, 1926, etc. I
of commodities. Standard wages based onwage agreements, which, like many commodityprices, are largely controlled through cartels,continued to advance even in the latter half ofthe year.
The money market.—Immediately after the1928 end of year settlements the seasonal re-laxation set in, and on January 12 the Reichs-bank was able to reduce its discount rate from7 to 6% per cent. Because of the considerabledecline in the volume of its credit outstanding,the bank was able deliberately to disregard thefact that curtailment of the margin betweenrates of interest in and outside Germany wouldcheck the influx of foreign capital, and undersome circumstances might even involve a re-duction in the Reichsbank's large holdings ofgold and foreign exchange. The withdrawalsof gold and foreign exchange which began inthe spring, however, assumed proportionsbeyond anything that had been anticipated.Not only did the service of interest and amorti-zation of the heavy foreign indebtedness andthe unremitting foreign exchange payments onreparation account draw heavily on the goldand devisen of the Reichsbank, but the situa-tion of the leading international money marketsbecame less favorable; finally, toward the endof March there began a " flight from themark/7 the origins of which are to be soughtin a fear psychosis created by the uncertain-ties of the Paris conference and fostered byirresponsible elements within and outsideGermany. Inasmuch as Germany, as a resultof her own lack of capital and her heavy repa-ration burdens, is dependent on the assistanceof foreign capital, grave difficulties arosewhen foreign aid ceased to be available andforeign funds were withdrawn—in part delib-erately—or were no longer sent to Germany forinvestment. The dangers inherent for Ger-many in this situation were clearly revealedduring the crisis in the spring, althoughthroughout the negotiations on the Young plan,both in Paris and at The Hague, they were keptin the background. It was inevitable that thissituation should affect the German money andcapital market in such a way as to undermineand unsettle confidence.
An advance in the discount rate of the bankfrom 6}i to 7}i per cent, made effective onApril 25, had no effect. There was neither anyreturn flow of gold and foreign exchange to theReichsbank, nor any reduction of demands onthe Reichsbank for negotiation of inland bills.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 299
It became increasingly clear that a crisis ofconfidence had developed; the demand fordomestic credit rose beyond the economic re-quirements of the country, and was directedlargely to the accumulation of stocks of foreignexchange. In this situation, in which advancein the discount rate seemed to be withouteffect, the Reichsbank at the beginning of Mayunfortunately felt itself compelled to employthe method of credit restriction. The bankmanagement is, however, fully persuaded thatcredit restrictions involve a danger to economicdevelopment, depriving business of the undis-turbed flow of services which it is the functionof currency to render. The utilization of thislast resource, therefore, was justified only bythe fact that Germany was powerless to resistforeign pressure, and confidence within thecountry was threatening to give way.
The aim of the policy of restriction, namely,to limit the demand for credit to essentialpurposes, was quickly attained, especially asthe progress of the Paris negotiations relievedthe general situation. The gold and foreignexchange holdings of the Reichsbank beganonce more to advance, and by the end of Maythe demand for Reichsbank credit had beenreduced to proportions which the bank couldmeet without danger. The measures of re-striction became less and less necessary, andby the middle of June were superfluous.
During the latter half of the year the positionof the Reichsbank improved still further, sothat there was no longer any objection on thepart of the bank to relieving the businesscommunity by a reduction in the discount rate.But in view of the exceptionally difficult condi-tions in foreign money markets and the largevolume of Germany's short-term indebtednessto foreign countries, it was essential to avoid toogreat a reduction of the margin between inter-est rates in Germany and in the principalforeign markets. Under these circumstancesit was not possible until November 2 to meetthe pressing need of the business communityfor a relief from the burden of interest, andthen only to the extent of one-half per cent.Further reduction, which might have beenpossible in view of the easier conditions thatwere beginning by that time to prevail on allforeign markets, was unfortunately impossibleowing to special conditions in the Germanmarket—in particular, the continual demand forcredit on the part of public bodies.
Movement of gold and foreign exchange.—During the critical weeks in the spring of 1929the Reichsbank surrendered altogether nearly
1,500,000,000 reichsmarks ($357,300,000) ofgold and foreign exchange. Under the influenceof the withdrawals of foreign exchange byGerman and foreign holders the official quota-tion of the dollar dropped to the gold exportpoint. The necessary consignments of gold toforeign' countries were in every case effectedby the Reichsbank itself, which sold the goldprincipally in New York. In order to dispensewith the actual shipment of part of this gold toNew York, agreements were made on severaloccasions with foreign (European) banks ofissue, which placed the necessary amounts atthe disposal of the Reichsbank out of theirstocks of earmarked gold on deposit in America.The gold delivered by the Reichsbank in ex-change, amounting to about 700,000,000reichsmarks ($166,740,000), was shipped, notto America, but to the European centers con-cerned. Altogether some 870,000,000 reichs-marks ($207,234,000) were sold in New York,40,000,000 reichsmarks ($9,528,000) in London,17,000,000 reichsmarks ($4,049,400) in Paris,and 28,000,000 reichsmarks ($6,669,600) inHolland and Switzerland.
The short-term foreign indebtedness of theGerman banks at the end of March and the endof June, 1929, was not much less than at theend of December, 1928, in spite of the largesurrenders of foreign exchange by the Reichs-bank during this period; in the second halfyear a considerable increase was again to beobserved. From the inflow of funds theReichsbank was able once more to replenish itsholdings of foreign exchange. At first the bankhad purchased to only a limited extent theforeign exchange accumulated during theflight from the mark and now offered to it as aresult of the measures of credit restriction.The effect of this policy was to strengthenreichsmark exchange. The improvement ofthe reichsmark was especially noticeable withreference to sterling, which was periodicallydepressed on the international market. Fromthe end of May it was possible to import goldfrom England. If the Reichsbank on occasionintervened to prevent such imports, it did so inorder that the Bank of England might not be ledto adopt a discount policy which in turn wouldbe undesirable for the German money market.
Position of the reichsmark.—Movements ofthe exchanges during the eventful period of theyear under review show that the Reichsbankwas able at all times to protect and maintainthe stability of the reichsmark. The bank wasable to improve its position quickly with theaid of the measures indicated whenever it
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
300 FEDERAL RESERVE BULLETIN MAY, 1930
considered such measures necessary; and itshowed once again that, even under difficultcircumstances, it can fulfill the tasks imposedupon it in so far as it is prepared to make ener-getic use of the powers at its command.
It is most regretable that there should never-theless still be persons who speak and write ofan impending collapse of the currency andendeavor to alarm the public by prophesying anew inflation. Such action is particularlyunscrupulous on the part of persons who goabout the country protesting without anysense of responsibility against the collection oftaxation, and make a living out of suchpractices.
The capital market.—The tension in theGerman capital market increased still furtherduring the year under review. There was amarked decline in the ability of the market toabsorb capital issues. The volume of publicloans and issues of mortgage bonds diminished;considerable amounts of public issues could notbe placed at all, and the interested parties wereobliged, in order to support the quotations,to}'take large blocks off the market withouteven then being able to accomplish theirpurpose. Quotations on the stock exchangefell almost uninterruptedly. Mortgage bondswere so depressed that the placing of mortgagesat tolerable interest rates was practicallyimpossible. For industrial concerns also itwas generally impossible to raise capital by theissue of shares or bonds. Rates of interest inthe German capital market rose continuously,and are now, as formerly, far in excess of the lim-its which can be borne by an industrial countrywhich has international connections and isdependent on the formation of capital. Theaverage yield of fixed interest-bearing securi-ties at 8 per cent or less quoted on the BerlinStock Exchange rose from 8.02 per cent at theend of 1928 to 8.42 per cent at the end of 1929.The financial difficulties of the Reich and of alarge number of German municipalities at theend of the year showed that the highly pre-carious system of meeting long-term capitalcommitments over considerable periods oftime by the provisional contraction of short-term debts had reached a point at which itwas no longer practicable.
In proportion as foreign financial capitalceased to be available to Germany in the formof long-term loans, the dependence of Germanindustrial concerns on foreign industrial capitalincreased. Purchases by foreign countries ofGerman shares through the medium of thestock exchange were replaced to an increasing
extent by special contractual participationsin German enterprises. As a result of thisdevelopment, any estimate of the undoubtedlylarge volume of foreign capital which found itsway into Germany during the past year iseven more difficult than it was in previousyears.
The Reichsbank as the currency institutionwhich finances short-term credit is, in the na-ture of things, limited in the amount of sup-port it can give to the capital market; so thatthe not inconsiderable extension of the list ofsecurities eligible as collateral for lombardloans, as well as other facilities accorded lom-bard transactions, can be of little practicalsignificance.
Proposed changes in the Reichsbank law.—In connection with the proposed reparationsettlement, a revision of the Reichsbank lawhas also been under discussion. The changesproposed take account of the situation createdby The Hague agreement, while certain otherprovisions of the law are adjusted to require-ments which have in the interval made them-selves felt. The fundamental principles of thepresent law remain unchanged; and in particu-lar the independence of the Reichsbank is stillfurther secured. Special mention should bemade of the new proposals respecting distri-bution of profits, which are included in theother provisions for amendment to be presentedto the general meeting for its approval. Thearrangement contemplated in the Dawes planand incorporated in section 37 of the bank lawof August 31, 1924, was based on the assump-tion that it would be desirable to increase thecapital of the Reichsbank to 400,000,000reichsmarks ($95,280,000), or at least to aneffective amount of 300,000,000 reichsmarks($71,460,000), and to draw on the foreigncapital market for the purpose. Neither stephas been necessary. The Reichsbank has beenable to manage hitherto with the capital whichit acquired through consolidation of its oldshares and the transfer to it of shares, of theGolddiskontbank and other institutions. While,therefore, it seemed only reasonable in connec-tion with the new reparations plan—whichimposes extremely heavy commitments on theReich—to modify an obviously unfair distri-bution of profits based on incorrect assump-tions, it was impossible to ask the shareholdersto agree to such a change without the offerof a suitable equivalent. Improvement in theposition of the Reich is assured by the follow-ing arrangement: After payment of a minimumdividend of 8 per cent to the shareholders the
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 301
distribution of the remaining profits will bechanged in such a way that of the first 25,000,-000 reichsmarks ($5,955,000) the Reich willreceive. 75 per cent and the shareholders 25 percent; of the next 20,000,000 reichsmarks($4,764,000), the Reich will receive 90 per centand the shareholders 10 per cent; of any sur-plus still remaining, the Reich will receive 95per' cent and the shareholders 5 per cent.The general meeting will be asked to agree tothis proposal, subject to the provision thatshareholders shall be entitled, gratis, out of thereserves of the bank, to a £10 Golddiskontbankshare and a new Reichsbank share of 100reichsmarks (both with dividend as from Jan-uary 1, 1930) in respect of every four old sharesof 100 reichmarks each.
The capital of the German Golddiskontbankwill be paid up in full before this arrangementis put into effect, so that in future it will haveat its disposal a share capital of approximately200,000,000 reichsmarks ($47,640,000) and re-serves of approximately 50,000,000 reichsmarks($11,910,000). These resources offer a practi-cal basis for the resumption and extension of itsactivities in the financing of exports, and justifythe expectation that even after the abolition—contemplated in connection with the revision ofbanking legislation—of the present privilegedposition in regard to taxation, of the cumulativedividend, and of the share of the Reich in theprofits, a reasonable return on the share capitalwill be earned. In any case the resumption of adividend payment is proposed for the year 1930.
BALANCE SHEET OF THE GERMAN REICHSBANK AS OP
DECEMBER 31, 1929
Reichs-marks (in
thousands)
RESOURCES
Reichsbank shares not issued.,•Gold, not under lien (gold bars, domestic and for-
eign, coins):In the cash offices of the bankWith foreign central banks of issue
Cash balances:Subsidiary coin _ __ __Rentenbank notesReichsbank notesNotes of German private banks of issue.
Credit balances in foreign currencies (of which theequivalent of 401,043,000 reichsmarks was as-signed as cover for the notes in circulation)
Foreign notes. . . _Foreign bills and checks..Domestic bills and checks:
Treasury bills of the Reich.Other domestic bills and checks. _Domestic bills negotiated _
Silver
177,212
2,133,329149, 788
2, 283,117
89, 1119,616
1,369, 7163,979
Dollars i(in thou-sands)
42,212
508,15935, 680
543,838
21,2262,291
326,266948
1,472,422 i 350,731
413,234 i2,544 [
396,453 !
240,690 !2,212,479 i
98,432606
94,435
57,332527,012
332 79
* Conversion at par: 1 reichsmark=$0.2382.
BALANCE SHEET OF THE GERMAN REICHSBANK AS OF
DECEMBER 31, 1929—Continued
RESOURCES—continued
Loans against collateral (lombards), viz:Loans against gold and silver (sec. 21, 3a, of
the bank law)Loans against securities (sec. 21,3b, c, d, of the
bank law)Loans against bills (sec. 21, 3e, of the bank
law)Loans against goods (sec. 21, 3f, of the bank
law)Loans against long term obligations of the
Reich (sec. 21, 3, par. 2, of the bank l aw) . . .Loans against treasury bills of the Reich (sec.
21, 3g, of the bank law) _ _
Reichs- Dollarsmarks (In [ (in thou-
thousands) sands)
1
166,667
32,878
1,170
27,434
22,480
39,700
7,832
279
6,535
5,355
250,630 j 59,700
Securities owned _ iDoubtful assets !
Land and buildings _ \Claims resulting from the settlement with the j
Reich _ _!Miscellaneous: i
Bank notes no longer fit for circulation .;Postponed claim on the German Rentenbank I
in virtue of section 11, 4 of the law of Aug.30, 1924, for the liquidation of Rentenbank jnotes in circulation . . .
Claim on the German Rentenbank in respect iof the Rentenbank notes withdrawn from jcirculation and placed under earmark for !
the amount of the above-mentioned claim jof the Reichsbank j
Credit balances with postal check offices IOther claims !
93,2929,779
30,000
108,914
583
70,082
70,08220,038
140,842
301,628
Total resources...
Total bank-note issue 6,413,975Credit balances of giro and current accounts 755,170
Original capital:Shares issuedShares not yet issued
122,788177,212
Legal reserve fund (including transfer from netprofits of the year 1929).—
Reserve for pensions, etcReserve for probable losses (including 15,000,000
reichsmarks transfer from gross profits of theyear 1929)
Reserves for —Printing of new notesNew buildingsIncrease of original capital
300,000
53,91580,000
90,000
Special reserve fund for future payments of divdends _
Miscellaneous:Interest on bills due in 1930Dividends due but not yet paid _Rentenmark sinking fundDollar treasury notes of the Reich to be re-
deemed by the Reichsbank _Liabilities in foreign currenciesOther book debts
Net profits for the year 1929Less 20 per cent assigned to the legal reserve
fund
Contingent liabilities resulting from negotiateddomestic bills
Total liabilities..
35,00035,00031,000
101,000
45,811
11,04317117
279197
120,676
132, 383
25,589
5,118
20,471
7,992,726
22,22212,329
7,146
16,694
16,6944,773
33,549
71,848
29,24842,212
71,460
12,84319,056
21,438
8,3378,3377,384
24,058
10,912
6647
28,745
31,534
6,095
1,219
4,876
1,903,867
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
302 FEDERAL RESERVE BULLETIN MAY, 1930
ANNUAL REPORT OF THE BANK OF JAPAN
The annual report of the Bank of Japan for1929 was submitted to the general meeting ofshareholders on February 15, 1930. Theaddress of Mr. Hisaakira Hijikate, governor ofthe bank, is given herewith:x
Business conditions during the past year, asin the preceding year, were characterized byslackness. Foreign trade was from the begin-ning distinctly unfavorable; the exchanges fol-lowed a downward course, while the questionof the removal of the gold embargo remainedundecided. The depression became even morepronounced in the latter half of the year, whenthe new Government, on coming into power,made the restoration of the gold standard oneof its cardinal policies. In order to insure theattainment of the goal, the Government effecteda retrenchment and economy in public finances,endeavored to check fresh expansions of nationaland local government debts, and inculcatedthrift and economy in consumption upon thenation. In deference to the Government's pol-icy, which gradually assumed a definite shape,business and industry were induced to adopta more cautious attitude. Commercial trans-actions were further held up. In variousbranches of industry production was limited orsubjected to further curtailment, promotionsor extensions of business enterprises were con-spicuous by their decline, and commodity andshare prices moved to lower levels.
Meanwhile, under the influence of economyin consumption and expectations of an earlyremoval of the ban on the export of gold, for-eign trade showed a falling off in imports andan advance in exports, which resulted in animprovement in the country's position in inter-national payments. The exchanges also beganto take a sharp upward turn. Whereupon, witha view to mitigating the effects upon businessof a violent advance in exchange rates and toreplenishing its holdings of foreign funds inconnection with the return to the gold standard,the Government proceeded to purchase foreignexchanges. Moreover, the Yokohama SpecieBank, assisted by the Government and thisbank, established credits in London and NewYork to the extent of 100,000,000 yen ($49,-850,000). While these preparations were inprogress, it so happened that money rates inforeign countries began to take a downwardcourse. The conditions both at home and
i Official English version, published (in abridged form) by the Bankof Japan. In addition to the address of the governor, the report con-tains numerous tables showing the condition and operations of the bank.For earlier reports see FEDERAL RESERVE BULLETIN, April, 1929;May, 1928; 1927; June, 1926; etc.
abroad showing favorable development, theGovernment announced on November 21, byan ordinance of the Finance Ministry, the repealof the ordinance regulating gold exports, totake effect on January 11, 1930. Thus wassolved the long-standing problem of the removalof the gold embargo.
Money market.—The money market dis-played a growing tendency toward relaxationfrom the beginning of the year under review:Overnight loans were obtainable in Tokyo, inthe middle of January, at as low as 0.4 sen perdiem (1.46 per cent per annum), with otherrates showing an equally easy trend. Conse-quently, the associated banks in Tokyo andOsaka lowered in February their rates ofinterest on deposits to 4% per cent per annumin respect of fixed deposits with the class Abanks and to 5 per cent on those with theclass B banks, the banks at other centersfollowing suit. The reduction in the rates ofinterest on deposits had the effect of hasteninga decline in loan rates. The share market,however, was extremely wary and inactive,owing to the uncertain outlook on the gold-embargo situation. Interest seemed to centerin debenture issues. As the terms of issuebecame more favorable to the borrowers, therefunding of old loans at lower rates of interestwas undertaken to a large extent, therebyserving in no small measure to improve theposition of industrial establishments. Theactivity in corporation debentures, however,did not last beyond the month of May, so that,whereas the total amount of debentures issuedduring the first six months reached 690,000,000yen ($343,965,000), the figure fell away in thelatter half year to 350,000,000 yen ($174,475,-000), or about one-half. The business inGovernment bonds was likewise inactivethroughout the year, and with the approach ofthe embargo removal the weakness in the sharemarket was more in evidence. The commercialtransactions in seasonal goods were also limitedto immediate requirements. This, combinedwith declines in commodity prices, resulted inan extreme slackness in the movements offunds. Bank clearings reflected the situation.The aggregate of clearings at all clearing housesduring the past year, amounting to 63,100,000,-000 yen ($31,455,350,000), shows a decrease of5,300,000,000 yen ($2,642,050,000), comparedwith the preceding year. The keen anxietymanifested by bankers during the first half yearto seek employment in short loans for the funds,which had accumulated as the result of their
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 303
calling in long-term credits and their reluctanceto furnish them, was intensified in the lasthalf year. The proceeds of the foreign ex-changes purchased by the Government increasedthe already abundant supplies of funds onbankers' hands, so that the treasury bills tothe amount of 35,000,000 yen ($17,447,500)offered in October were sold out on the day ofissue.at the rate of 1 sen per diem (3.65 percent per annum). Discount rates likewiseshowed an easing tendency all through the year.Commercial paper, which was quoted in Tokyoearlier in the year at 1.6-1.7 sen, (5.84 per centto 6.24 per cent per annum), ruled afterAugust at 1.5 sen. Overnight money did notrise above 1.5-1.6 sen (5.51 per cent to 5.84 percent per annum) even at the time of year-endpressure and the turn of the year passed quiteeasily.
Central bank credit.—Turning now to aconsideration of the bank's business, we observea gradual decrease in the loans and discountsdue to repayments of special advances madeunder the indemnity act and other loans, thetotal amount of advances outstanding in themiddle of December receding to 684,000,000yen ($340,974,000). As the year-end require-ments for currency were largely met out of thebankers' deposits with us, our advances, afterrising for a time to 748,000,000 yen ($372,-878,000), decreased on December 31 to 679,-000,000 yen ($338,481,500), of which 598,000,-000 yen ($298,103,000) represented the ad-vances under the indemnity act. Of thedeposits with the bank, although Governmentdeposits showed on the whole a decrease, thesuperabundance of funds in the market causedprivate deposits to be maintained at substan-tial figures throughout the year, with monthlyaverages ranging between 258,000,000 yen($128,613,000) and 352,000,000 yen ($175,-472,000). Even at the year end the figuresdid not fall below 152,000,000 yen ($75,772,-000). The increase in private deposits and therepayment of advances caused a contractionin the bank-note circulation, the monthly aver-ages of the note issue ranging between 1,191,-000,000 yen ($593,713,500) and 1,396,000,000yen ($695,906,000). The amount outstandingon December 31 was 1,641,000,000 yen ($818,-038.500), showing a decrease of;97,000,000 yen($48,354,500) in comparison with a year ago.As regards the special advances made by thebank in respect of the earthquake bills, we re-ceived between December, 1927, and February,1929, by which latter date a complete settle-
ment of the account was effected, indemnifica-tion from the Government according as ouradvances were recognized as losses. The entireamount so received was in the form of Govern-ment bonds aggregating 99,000,000 yen ($49,-351,500) in all.
Government issues.—The amount of Gov-ernment bonds issued during the past year,excluding rice-purchase notes and treasurybills, totaled 441,000,000 yen ($219,838,500),against repayments of 335,000,000 yen($166,997,500), leaving a net increase innational debt of 106,000,000 yen ($52,841,000).Of the entire issues only 271,000,000 yen($135,093,500) of conversion loans were offeredto the public. The new issues of 169,000,000yen ($84,246,500), with the exception of theportion subscribed for by the treasmy depositbureau, were delivered to the various Japanesebanks in connection with the readjustment oftheir loans to the Chinese Government or usedin payment for the purchase of private railwaysand for other purposes. Of the amount repaid,260,000,000 yen ($129,610,000) were retiredupon maturity, while 74,000,000 yen ($36,-889,000) were purchased by means of sinking-fund operations.
International developments.—Turning toconditions abroad, in the United States thephenomenal prosperity that marked the pre-ceding years continued in the past year. Thespeculative enthusiasm in the stock marketsattained an excessive intensity and created anextraordinarily strong demand for funds.Money rates, in consequence, rose higher andhigher, and there was a continuous efflux ofEuropean funds to New York, resulting in asympathetic rise in rates in the financial centersof the world. However, with the spectacularreaction that occurred late in October, morenormal conditions obtained in the United Statesand money rates in the European markets alsotended to lower levels, a development quitefavorable to the removal of the gold embargoin this country.
The international conferences that were heldin Europe did much toward the settlement ofthe German reparations problem, bringingabout a brighter economic outlook in that partof the world. Still, the general situation inEurope was one of continued depression.Although the boycott of Japanese merchandisein China practically subsided, the political un-settlement in that country, combined with theslump in the price of silver, had a diminishingeffect on the purchasing power of the general
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
304 FEDERAL RESERVE BULLETIN MAY, 1930
public. In India, Australia, and the SouthSeas conditions were not wholly satisfactoryas a result of decreased agricultural crops orof declines in their prices. Nevertheless, ourexports to those quarters increased more or lessowing to peculiar market conditions obtainingthere.
Foreign trade and foreign exchange.—Thefeature of the foreign trade of this country wasa great rush of raw-cotton imports in the firstsix months, which was largely responsible forthe excess of imports over exports during theperiod, amounting, in respect of Japan proper,to 282,000,000 yen ($140,577,000). In thelatter half, however, each succeeding monthshowed a substantial excess of exports, so that,taking the year as a whole, the import balancewas reduced to 67,000,000 yen ($33,399,500).The returns for the whole country, includingChosen and Taiwan, showed exports valued at2,217,000,000 yen ($1,105,174,500) against im-ports of 2,388,000,000 yen ($1,190,418,000).The net import balance of 171,000,000 yen($85,243,500) showed a decrease of 163,000,000yen compared with the corresponding figuresfor the preceding year, and was the lowestrecorded in the postwar period.
The foreign exchange rate followed a down-ward trend from the beginning of the year,reflecting the unfavorable condition of tradeiri the first half-year. The Yokohama SpecieBank's rate on New York, which was quotedearly in the year at $46, fell away by the end ofJune to $43.75, a decline of $2.25. The practicalmeasures taken in furtherance of the Govern-ment's policy of the return to gold, togetherwith the improvement in our trade position,brought about a rally in the exchange, whichsteadily rose from July, until $48,625 wasreached on November 21, the day of theannouncement on the removal of the embargo.Further advances brought the rate by the endof the year to $49, showing a gain of $5.25since the end of June when the lowest point inthe year was touched.
Restoration of the gold standard.—It will beseen from the above that the latter half of thepast year saw the efforts for the restoration ofthe gold standard brought to fruition. If thedepression in business was somewhat deepenedin the course of the attainment of that object,it is highly gratifying that, thanks to themeasures taken by the Government and thecooperation of the public at large, this greatproblem has finally been solved without anydisturbing effects. The removal of the gold
embargo, however, marks merely the firststep in the return to normality of our economicactivities. The healthy unfolding of nationalresources under a full gold standard can comeonly through the continued exertions of thenation in the future. The development ofindustries and the expansion of foreign com-merce are the urgent needs of the country. Itdevolves upon this bank, as its essential func-tion, to meet the monetary needs of the com-munity, while at the same time so regulatingand controlling the circulation of money asto insure the stability of the currency system.We shall, accordingly, be guided by theseconsiderations in determining the discountpolicy and other measures to be pursued bythis bank; and it is important that we extendcredits only where liquidity is assured andstrictty refrain from making such advances aswould tend to tie up our resources. For mypart, I shall do my best in conducting the bank'saffairs in accordance with these principles.
BALANCE SHEET OF THE BANK OF JAPAN AS OFDECEMBER 31, 1929
RESOURCES
Advances to Government ^art. 2, bank-note act) . . .Advances on foreign billsBills discounted _Bills discounted (law No. 55 of 1927) _.Deposits with other banks jGovernment bonds. |Gold and silver bullion \Agencies accounts _ _ jAgencies accounts, specified _Foreign agencies accounts _JSuspense payments _ _ !Bank premises __ _ ICapital unpaid !Redemption fund for fiactional Government
notes as pei contraCash items on Government accountCash on hand
Total resources
LIABILITIES
Notes issuedRedemption fund foi fractional Government
notesGovernment deposits _.Funds for the payment of mint certificatesCurrent accountsRemittancesDue to other banksSuspense receiptsReserve for taxesCapital subscribedReserve fundReserve against depreciation of bank premisesDividends unpaid _ _ _Profit brought forward from last half yearNet profit for the current half year
Total liabilities
22,00030,03351,475
598,18036,993
221,979819,44725,9434,627
240,973439
4,72922, 500
12,08549,840
289,628
10, 96714,97125,660
298,19318,441
110,C57408,49412,9332,307
120,125219
2,35711,216
6,02424,845
144, 380
1, 641,852
12,085392,096
100140, 56111,530
367,7542,637
60,00091,765
6154
4,9164,952
2,430,871
], 211, 789
818,463
6,024195,460
5070,0705,748
133,7751,315
29,91045,744
3072
2,4512,469
1,211,789
* Conversion at par: 1 yen=$0.4985.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDEKAL EESERVE BULLETIN 305
ANNUAL REPORT OF THE NATIONAL BANK OF SWITZERLAND
The annual report of the Swiss National Bankfor 1929 was submitted to the meeting of stock-holders on January 22, 1930. The full text ofthe report, with the exception of paragaphsdealing with the branches of the bank and withpersonnel, are given herewith.1
Currency situation since 1914.—In decreeingon July 30, 1914, that notes of the Swiss Na-tional Bank should be inconvertible and accept-ed as legal tender the Federal Council wasexercising powers conferred upon it by the banklaw. This decree still remains in force, althoughthe circumstances under which it was legallypermissible—i. e., "emergency in time ofwar"—have long since ceased to exist. An in-creasing body of opinion demands the removalof this decree, which is contrary to the law andno longer justifiable. The situation in Switzer-land and in other countries, howrever, hasundergone great changes; so many countrieshave reformed their currency by establishingor preparing for a return to the gold standardthat a simple repeal of this decree is not suffi-cient. Its mere repeal would reintroduce thelegislative provisions in force before 1914,which required that the reserve should consistof "gold or silver coin having the quality oflegal tender or a value recognized by legalconvention, but exclusive of silver fractionalcurrency and foreign gold coin and bullion";and that bank notes should be redeemable"in lawful money."
Proposed amendments to bank law.—Thedissolution of the Latin Monetary Union hasenabled Switzerland to inaugurate a trulynational currency system under which foreigngold coin and 5-franc silver pieces, formerlycirculating in the country and recognized ascurrency either by law or agreement, havefinally lost their legal-tender quality. Thisstate of affairs made it necessary that ourbanking law should be amended at the sametime at which the exemptions of the bank inrespect to note redemption were to be repealed.A small commission of experts, summoned inJanuary by the Federal Department of Fi-nance to study the problem of currency reform,adopted the solution which was under consid-eration by the Department of Finance and thebank of issue, namely, to change from bimet-allism to gold monometallism; thereupon thebanking authorities w ere able to finish their
1 In addition the report contains details of bank operations, tables,and discussion of financial conditions, gold movements, etc., in othercountries. For earlier reports see FEDERAL RESERVE BULLETIN, April,1929, 1928; March, 1927; April, 1926, etc.
preliminary draft of a bill amending the banklaw and adapting it to new conditions. Theseproposals, approved on March 2, 1929, by thegeneral assembly of shareholders of the bankand transmitted to the Federal Assembly,were made the subject of a message and a billsubmitted to the houses of Parliament by theFederal Council on October 8, 1929. Thisbill was debated and approved without delayin the December session. This decree bearsthe following title: "Federal law of December20, 1929, amending the Federal law of April 7,1921, in re the Swiss National Bank." TheFederal Council at the end of three monthsallowed for referendum will fix the date onwhich the law shall become effective.
The new law modifies the organic law of1921 only in respect to those points which areincompatible with the introduction of goldmonometallism. Henceforward silver will nolonger be eligible as metallic reserve. Therewill be no mention of it in article 19 of thebank law, which governs the reserve; accord-ingly the provision in article 19bis of the lawof September 27, 1923, authorizing the inclu-sion in the metallic reserve of 5-franc pieces ofthe Latin Monetary Union which had beenwithdrawn from circulation, becomes null andvoid. The right—of which the bank hadnever availed itself—to issue silver certificates,as provided in article 14, is revoked. On theother hand, article 19 introduces a new pro-vision, which obligates the National Bank tomaintain a minimum reserve of 40 per centwithin Switzerland, which implies that anypart of the reserve in excess of 40 per centmay be held abroad.
The revised law contains the following pro-visions for redemption of notes:
ART. 20. The National Bank is obligated to redeemits notes on demand in Swiss gold coin—
(a) At its office in Berne, without limit as to amount.(5) At its office in Zurich, as well as at the branches
and agencies administered by the bank, to the extentthat the reserve of coin and their own needs permit,but in any event with no more delay than is necessaryto have specie brought from the head office.
The service of note redemption shall be organizedto meet the needs of the locality.
ART. 20bis. During such time as the banks of issueof countries designated as important by the authoritiesof the bank do not themselves redeem their notes ingold coin, the bank shall have the right to redeem itsnotes on demand in one or another of the followingforms:
In Swiss gold coin;In gold bars, of the customary commercial weight
(about 12 kilograms) on the basis of mint parity;In gold exchange (bank deposit or check); that is
to say, in exchange on countries having a free gold
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
306 rjEDERAL RESERVE BULLETIN MAY, 1930
market. The rate of conversion of this exchange shallbe calculated on the basis of the exchange rate ofthe foreign currency at the time of the transaction.It shall not, however, in any case exceed the exportpoint for shipment of Swiss gold coin to the foreignbank on which the draft is drawn. The selection ofthe foreign currencies [in which redemption is to beeffected] is reserved to the National Bank.
Redemption shall be made—In gold coin and gold bars, at the office in Berne
without limitation as to amount; at the office inZurich, and at the branches and agencies administeredby the bank, to the extent that the reserve and theirown needs permit, but in any event writh no moredelay than is necessary to bring the metal from thehead office;
In gold exchange at any of the above-mentionedoffices of the bank, without limitation as to amount.
The service of note redemption shall be organizedto meet the needs of the locality.
In principle, article 20 provides that theconversion of bank notes shall be made exclu-sively in Swiss gold coin, and thus implies thatgold will be put into circulation. For the pres-ent, however, the provision is important ratheras a goal to be achieved, because for practicalreasons its application must be deferred untilsuch time as those other countries w hich arefinancially important to us shall again have putgold coin into circulation. It is impossible,therefore, to fix the precise date on which itwill go into effect; until then the bank willredeem its notes in accordance with the tempo-rary arrangement provided in article 20bis.
In framing the amendment the question wasconsidered of retaining—in other words, of in-cluding permanently—in the banking law thelegal-tender status of notes of the NationalBank, established by the decree of the FederalCouncil of July 30, 1914. According to article30 of the Federal constitution and of article 22of the bank law, such a measure can be decreedby the Federal Council only in an emergency intime of war. Inasmuch as a decision to makethis change would have required an amendmentto the Federal constitution, it seemed prefer-able to give it up in order to expedite the mone-tary reform. Thus from the time when theamended banking legislation becomes effective,inconvertibility and legal-tender quality willboth be abrogated, and the situation as pro-vided for under the constitution will be rees-tablished.
Bank for International Settlements.—Theevent which deserves first place in our discus-sion of business and finance is unquestionablythe creation of the Bank for InternationalSettlements. This institution, in addition toplaying a most important part in internationalbusiness, will also, being located in Swiss terri-
tory and closely related to our economic life,become in many ways a factor of great signifi-cance to this country.
The International Bank, created for thepurpose of carrying out the reparation plan,owes its origin to the postwar situation. TheDawes plan of 1924—the first attempt toliquidate the financial consequences of the waron economic rather than on political considera-tions—was superseded provisionally on Sep-tember 1 by the Young plan, as embodied inthe final report of the committee of expertswhich met in Paris from February 9 to June 7under the presidency of an American, Mr.Owen D. Young. Their desire to substitutefor more or less political controls an organismof economic and commercial character, andtheir conviction that the management ofreparations would involve large financial opera-tions, led the experts at once to envisage thecreation of an International Bank. They fol-lowed up this idea and stated their conclusionsin the final report mentioned above. InAugust, after prolonged negotiations, TheHague conference of representatives of thevarious Governments concerned ratified theYoung plan in its essential particulars. There-upon an organization committee met in BadenBaden during October and November and drewup the statutes and charter of the InternationalBank, which w ere approved in January by thesubsequent Hague conference. There, in ac-cordance with the suggestion of the organiza-tion committee, the conference finally choseBasel as the seat of the International Bank.This choice may be regarded as proof of confi-dence in the political and economic situation ofSwitzerland and in the soundness of its currency.
The idea of creating a special institution forinternational settlements is by no means new;it has been put forward in various forms duringthe past decade. The extreme currency depre-ciation brought about by the war, as well asthe reciprocal indebtedness of the former bel-ligerents, have strengthened the desire for inter-national collaboration and have shown theabsolute necessity of cooperation betweenbanks of issue. The International Bank,therefore, will not be restricted to the perform-ance of its immediate task, namely, that ofadministering the reparations plan; it will alsobe called upon to promote cooperation be-tween central banks. From this point of viewno slight importance attaches to the establish-ment of a system of clearings through transfersof gold or foreign exchange. Besides the coun-tries directly concerned in reparations, only
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 307
such Governments as have a currency which con-forms to the practical requirements of the goldor gold exchange standard will be allowed toparticipate in the International Bank. Becauseof this fact the bank will become the chiefsupport of gold monometallism and will con-tribute to stability of the exchanges.
Commercial treaties.—During the course ofthe year Switzerland concluded a new commer-cial treaty with the Belgo-Luxemburg eco-nomic union, and a new treaty with Albaniaregarding commerce and the right of domicile;also the commercial treaty signed with Ger-many on July 14, 1926, has been put into effect.The commercial agreement concluded in 1928between France and Switzerland was super-seded this year by a formal commercial treatycovering the principal questions as to inter-change of commodities and including the tariffagreements in force up to that time.
Business conditions in Switzerland.—Theeconomic situation of Switzerland on the wholewas satisfactory. Toward the end of the year,however, the effects of foreign developments—the stock-exchange crisis in the United States,overproduction in some countries, and thesharp decline of prices on the international com-modity markets—began to be felt in thiscountry, especially by some of our export in-dustries. The number of unemployed wasless than that of the year before. Only a fewlines of business suffered from unemployment,while in others there was at times a dearthof skilled labor. Except for the ribbon indus-try and certain other branches of the textileindustries—embroidery in particular—whichshowed a further decline in exports, the greaterpart of our industries have been well employed,particularly the metallurgical, electrical, andchemical industries, the manufacture of ma-chinery, and watchmaking for at least the firstthree quarters of the year. The building in-dustry, interrupted at first by the abnormallylong period of intense cold, became very activelater on. Weather conditions were favorableto agriculture and grape growing, and theharvests were abundant almost everywhere;market prices, however, were generally lowerthan had been anticipated. Nevertheless, theremedial measures taken—the embargo on theimport of beef cattle, the increased tariff onbutter, and the final solution of the grain prob-lem, which requires the Confederation to pur-chase grain at a price guaranteed by law—havealready had excellent effects and have some-what relieved the situation of agriculture.Even if the profits of the tourist industry fell
short of the expectations raised by the successof the previous year, the total income fromthis source will hardly be less than that of 1928.Mountain railways have also made a goodshowing. Our generally satisfactory economicsituation is clearly indicated by the increasedturnover of postal checks and the larger earn-ings of our transport companies. It may beadded at this point that the official cost-of-living index fluctuated throughout the yeararound 160 (June, 1914= 100). The fluctua-tions of the wholesale price index were keptwithin a narrow range, the slight decline duringthe summer months being compensated by acorresponding advance in the months following..
Federal budget and public debt.—In 1928,for the first time since 1914, the accounts ofthe Confederation were closed with a surplus,which amounted to 23,700,000 francs ($4,574,-100). It is expected that, owing to the excel-lent economic situation, the year 1929 will showa no less satisfactory outcome, since customsreceipts, stamp duties, and the revenues fromFederal undertakings exceed those of the pre-vious year. It should be noted, however,that the close relationship between Statefinances and economic conditions presents acertain amount of danger, and that the adviceof the Federal Council to keep down expendi-ture is thoroughly sound. The efforts directedtoward the amortization of the large publicdebt were also fully justified and will relievefuture generations of a heavy burden. Thefunded debt of the Confederation reached itshighest point in 1924 and at that time amountedto 2,200,000,000 francs ($424,600,000). At theend of 1928 it had been reduced to 1,987,000,000francs ($383,491,000), and during the pastyear was still further reduced to 1,885,000,000francs ($363,805,000), as a result of systematicamortizations and of the repayment of the5K per cent American loan of $30,000,000floated in 1919, of which 94,000,000 francs($18,142,000) remained at the end of 1928.The bank obtained the dollars required forthis repayment at an average rate of 5.1825francs per dollar—that is, at about parity—although at the time the loan was floated thedollar was quoted at 5.70 francs per dollar.Even allowing for the discount at which theloan was issued, the Confederation has realizeda profit of about 7,800,000 francs ($1,505,400).The payment was made without floating anynew loan, while as a result of the preparationstaken by the Confederation and by the bankit caused no disturbance on either the moneyor the exchange market.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
308 FEDERAL RESERVE BULLETIN MAY, 1930
Swiss railways.—By the Federal decree ofJune 26, 1929, a grant of 35,000,000 francs($6,755,000) will be made at the beginning of1930 to the State railways in compensation forthe extraordinary services which they renderedthe Confederation during and after the war.This grant will further strengthen their finan-cial situation which made satisfactory progressduring 1929 in spite of the fact that on August1 they reduced freight charges—a measurewhich proved helpful to business. It should beremembered, however, that the very growth intransportation which produced an increase inrevenues necessitates larger operating expendi-tures (laying double tracks, improvement ofrailway stations, purchase of rolling stock,increase of personnel). Hence it is necessary tocontinue to administer this enterprise witha strict regard for economy. In this connec-tion it should be noted that the index of rail-way operating costs has been reduced to thepre-war level.
The finances of the cantons and communesalso benefited from the economic situation.All the cantons except two closed their 1928accounts with a surplus.
The capital market.—The volume of Swissloans floated in our capital market amountedto 248,000,000 francs ($47,864,000), as against55,000,000 francs ($10,615,000) in 1928. Inround figures, 100,000,000 francs ($19,300,000)w ere for account of banks, and 100,000,000francs ($19,300,000) for account of otherfinancial institutions and electric companies.On the other hand, neither the Confederationnor the State railways had recourse to the mar-ket, while the cantons and communes had tocover requirements slightly in excess of those ofthe preceding year.
The cantons were able to float their loanssuccessfully at an interest rate of 4% per centand an issue price slightly below par. Theaverage yield of five of the principal obligationsof the Confederation varied between 4.50 and4.70 per cent. The continued demand forthese securities by foreign as well as Swissinvestors brought about a slight decline in theyield, especially toward the end of the year.Throughout 1929 almost all the great banksissued their certificates at 5 per cent. On theother hand, banks in the cantons obtainedsufficient funds until autumn on offer of 4%per cent and were generally able to maintainthis rate throughout the year. In the autumnincreasing requirements induced some establish-ments to offer 5 per cent and occasionally h}{ percent. The crisis on the American stock ex-change and its consequences brought into our
short-term money market later on a greatabundance of liquid funds, which at lengthinfluenced the capital market also, so thattoward the end of the year several banks wereable to obtain a reduction in the rate of intereston their certificates. In general, the rate ofinterest on old mortgages remained unchanged,whereas for new mortgages a somewhat higherrate had to be paid.
In this connection it should be stated thatduring the past year further progress was madetoward the creation of the Federal mortgagebond (lettre de gage). The outline, drawn upby the Federal Council, of a Federal law gov-erning the issue of mortgage bonds was thor-oughly debated and accepted by the NationalCouncil which, in all essential points, agreedwith the conclusions adopted the year before bythe Council of the States. The National Banknow takes great satsifaction in being able toreport that the two chambers have adopted theproposals which the bank submitted in a reportin January, 1929, at the request of the mort-gage bond committee of the National Council.The chambers decided that two central mort-gage bond bureaus should be established, onefor banks in the cantons, and one for the otherbanks. At the same time the National Councilapproved the plan for revision of the bank lawto permit the National Bank to receive sub-scriptions to the bonds of the central mortgagebond bureaus.
Domestic stock issues amounted to 508,-000,000 francs ($98,044,000), as against 282,-000,000 francs ($54,426,000) in 1928. Thesefigures, however, include issues in the amountof 191,000,000 ($36,863,000) francs—as com-pared with 10,000,000 francs ($1,930,000) in1928—which were not offered for subscriptionexcept as they were admitted to listing on theSwiss stock exchange, and hence do not repre-sent a fresh demand for capital to their fullamount. Two of the great Swiss banks haveincreased their share capital so that the aggre-gate capital of the eight great banks, includingalso their declared reserves, has increased tomore than 1,100,000,000 francs ($212,300,000),and constitutes approximately 45 per cent ofthe aggregate capital and reserves of all theSwiss banks. The trust companies and holdingcompanies showed considerable expansion boththrough the organization of newT companies,and through capital increases which, duringthe first half year, amounted to 460,000,000francs ($88,780,000). At the end of June thesesocieties held about one-third of the aggregateshare capital of Swiss enterprises—that is,about 2,400,000,000 francs ($463,200,000).
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 309
The demand made on the Swiss capital mar-ket by foreign borrowings amounted to about110,000,000 francs ($21,230,000)—slightly larg-er than that of the previous year, but not suchas to create any difficulty in meeting domesticcapital requirements. In the first months of theyear these issues followed one another in some-what too rapid succession and, together withforeign short-term loans floated in this market,brought about an advance in foreign exchangerates. It became advisable, therefore, toseparate offerings of foreign loans by a specifiedlength of time, as is done in the case of Swissbonds. The "gentlemen's agreement" ob-served by the great banks with the NationalBank since 1925 was continued during the pastyear, and the bank of issue was always advisedin advance of any contemplated issue of foreignloans.
The international money market.—The in-ternational money market was disturbed by anumber of events. For some time it was theproblem of reparations which influenced thevarious markets, but the most important factorwas the feverish speculation which prevailed onthe New York stock exchange and at lengthspread to the stock exchanges of other coun-tries. It was sustained by the unbounded*optimism which the expansion of commerceand industry inspired, and it was furtherstrengthened by a liberal credit policy. It istrue that America gave evidence of extraordi-nary prosperity, but the price of shares wascompletely out of line with their yield. Tofinance the speculation in securities the NewYork stock exchange drew an immense volumeof funds from abroad. The Federal reservebanks, recognizing the unsoundness of thisposition, tried to check speculation by variousmeans. But their form of organization underthe law made it impossible for them to takeany effective action in the money market, andfurthermore their efforts were counteracted bythe activity of the private banks. The exces-sive speculation was bound to result in a crash.Toward the end of October the long expectedcrisis broke and assumed proportions such asthe stock exchange had never before known.The irresistible upward movement was sud-denly succeeded by a wave of pessimism whichcaused a huge volume of distress selling and acollapse in prices. This sudden change affectedforeign bourses more or less severely. Thefears that a stock exchange crisis might reactadversely upon commerce and industry, andeven the entire economic life of the country,were fully realized. The repercussions of thecrisis were not confined to America; for by
diminishing the purchasing power of manyclasses they created a situation which made it-self felt even in Switzerland. Later on thestock exchange crisis led to an abundance offunds and a lowering of money rates. Fundspreviously employed in the New York stockexchange were now set free and flowed notonly into the market there but also into theshort-term markets of Europe, so that a num-ber of central banks were able to reduce theirdiscount rates, some of them more than once.
The Swiss money market.—The Swiss moneymarket was not wholly unaffected by the inter-national situation. During the first half yearthe raising of interest rates abroad, the with-drawal of funds invested in Germany, the diffi-culty of floating German loans in America—allpressed heavily on our market, but it was theinfluence of Germany which was felt most.The withdrawal of a large part of our availablefunds to those foreign centers where interestrates were high produced a stringency in theSwiss market. The directors of the bank werethus faced with the question whether theyshould yield to this pressure from abroad, whichwould necessitate an advance in the officialbank rates and therefore a general advance ininterest rates; or whether they should try tomaintain the existing lower rates for the bene-fit of domestic business. They decided thatthere was no justification for the unrestrictedadmission of foreign bills to discount in Switzer-land, and that foreign bills, to be eligible fordiscount at the bank, must represent an actualimport of commodities into Switzerland,Otherwise the bank of issue would have allowedforeign enterprises, in many cases competingwith our own, to profit unduly by use of itscredit at a favorable discount rate. Nor didthe bank confine itself to applying the restric-tion already in effect, which limited the ma-turity of these bills to 20 days. It decided thatforeign documentary bills and acceptances aswell as finance bills, either Swiss or foreign,should be accepted only in limited amountsand together with Swiss paper eligible for dis-count. The bank also tried to put its creditso far as possible at the disposal of Swiss im-porters and exporters, and especially, when-ever the transactions were plainly of a com-mercial character, to enable them, by dis-counting directly with the bank, to take ad-, vantage of its low discount rate. The bankcontinued to apply to discount operations theconditions which it laid down in 1924. Thesemeasures, which became still more effectivefollowing the reduction of the foreign creditoperations of the banks, accomplished the de-
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
310 FEDERAL RESERVE BULLETIN M A Y , 1930
sired result. From the middle of August,therefore, the bank was able to liberalize itsrestrictions in respect to foreign documentarybills, acceptances, and finance bills which mightbe included in the offerings submitted for dis-count.
Stock exchanges.—The international stockexchange crisis caused some disturbance on theSwiss exchanges; the index of industrial shares,for example, declined from 246 to 212. Theliquidation of loans on foreign stock exchanges,however, and the reduction of short-term invest-ments abroad brought some relaxation in ourmoney market. The economic situation ofother countries led to a renewed inflow of fundsinto Switzerland, which created a strong de-mand for securities, especially bonds of theSwiss Confederation, and hence, an advance inthe index of securities. As, on one hand, fundsflowed into the market and, on the other hand,the demand for short-term funds was notlarge, the private discount rate showed a de-clining tendency during the last weeks of theyear. In 1929 the margin between the officialand the private rate of discount averaged 0.19per cent as against 0.17 per cent in 1928.Compared with those of other countries, theprivate rate of discount in Switzerland waslowest of all, the average for the year being3.31 per cent.
Discount rates.—The official discount ratewas unchanged at 3% per cent, that for ad-vances on collateral at 4K per cent. The effortsof the bank to reduce those advances on col-lateral which had in effect become long-termloans were carried on successfully. Theamount of loans on collateral showed a moder-ate decline while at the same time the numberof transactions increased, which indicatesgreater liquidity and activity in lombardloans.
The official discount rates of the principalfinancial markets, in comparison with the Swissrate, show the following yearly averages:
Switzerland..FranceEnglandGermanyBelgiumNetherlands.AustriaItalySpain..Sweden.New York . . .
1929
Per cent Per cent3.503.505.507.124.355.137.376.795.504.745.15
1928
3.505.524.507.004.254.506.275.955.024.014.51
Foreign exchanges.—The Swiss franc re-mained firm throughout the year under review,although the discount rate of the National Bankwas low compared with that of other countries.It is true that at the beginning of the yearheavy demands for foreign exchange (duringthe first two months the bank was called uponto deliver 160,000,000 francs) caused the francto decline slightly below dollar parity; but thedepreciation never exceeded 0.32 per cent.During the spring the bank was able tostrengthen its portfolio of foreign bills, and theposition of Swiss currency in respect to thedollar improved steadily. This improvementcontinued until, in the summer, a revival ofactivity abroad on the part of the Swiss bankscreated a new demand for foreign bills andbrought about a slight, temporary advance inthe exchanges. The situation in the exchangemarket, however, suddenly became very differ-ent following the crisis on the American stockmarket, which reacted on the principal curren-cies, so that the National Bank was shortlyable to purchase foreign bills at a lower rate.During this period, except for scattered trans-actions, no imports of gold worth mentioningtook place, for the reason that in Switzerlandminting of gold coins is subject to a tax andthat the bank, by purchasing foreign bills, an-ticipated imports of gold; in other words, thebank never permitted the foreign exchanges todecline to the effective gold import point toSwitzerland. The Swiss franc at length roseto a premium over all the other exchanges.
Disapproval of term " Swiss gold franc/'—Inthis connection the directors of the bank wish toexpress their disapproval of the use of the ex-pression " Swiss gold franc." In Switzerland thedifference in value between the bank note andthe coin has never been anything but temporaryand has practically not existed at all since theautumn of 1925. In connection, however, withrecent foreign loans floated in Switzerland,mention has been made from time to time ofthe Swiss gold franc. The board of directorswould be greatly distressed if this term shouldbecome established by use. The board con-tends that there is no reason for its existence.In the opinion of the board there is only onenational Swiss monetary unit, the franc, whichin its metallic form is equal in value to a weightof 0.3225806 gram of gold nine-tenths fine.On the other hand, there is no place for a Swissgold franc, and if this expression is used, it doesnot even mean a coin but a definite weight ofgold—that is to say, a payment in kind; a
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 311
payment in money, on the other hand, can bemade only in the currency unit of the country.It is therefore much to be desired that at leaston the part of Switzerland such an interpreta-tion of the gold clause should not be counte-nanced any longer.
Silver 5-franc coins.—In connection with therevision of our currency legislation—still inpreparation—mention should be made of thefact that the commission of experts, called to-gether in January by the Federal departmentof finance, was in all essential points in completeagreement with the conference of August 16,1928, on monetary circulation. The commis-sion recommends that 5-franc silver pieces con-tinue to be coined as subsidiary currency andthat their weight be reduced from 25 to 15grams; this measure will obviate the need ofbank notes in smaller denominations than 20francs. The other fractional coins will undergono change. The board of directors of the bankagrees with the opinion of the commission.
Gold policy of the National Bank.—Thebank has no reason to change the gold policywhich it has pursued for several years. It hasprofited by the favorable position of the Swissfranc to strengthen its metallic reserve byexchanging for gold part of the foreign billsbrought to it. This policy seems advisablein view of the fact that note circulation hasincreased and that silver is to be taken out ofthe reserve after the introduction of the goldstandard.
Note circulation.—During 1929 note circu-lation showed a further increase; the averagefor the year rose to 856,000,000 francs ($165,-208,000)' as compared with 818,000,000 francsin 1928 and 799,000,000 francs in 1927; at theend of the year the circulation amounted to999,000,000 francs ($192,807,000), thus reachingalmost 1,000,000,000 francs for the first timesince 1921. During 1928 the increase in notecirculation was due entirely to the normaldevelopment of business and the general situa-tion of the country. During the past year, inaddition to these factors, it would seem thatthe international situation has exerted no smallinfluence; as long ago as in the spring, but moreespecially during the second half year, theforeign demand for Swiss francs has tended toincrease our note issue.
Agreements for suppression of counter-feiting.—As we mentioned before in ourreport for 1927, efforts have been made to bringabout international agreements for the purposeof suppressing effectively the counterfeitingof bank notes and coins. During the past yearthese efforts have met with success. On the
basis of a preliminary report prepared by a com-mittee of experts, an international conferencecalled together in April by the League ofNations has worked out an internationalconvention for the suppression of counter-feiting. This convention was signed on April20 by most of the Governments, includingSwitzerland. The convention prescribes pen-alties for making and putting into circulationcounterfeit bank notes and coin and providesthat in prosecutions no distinction shall bemade between counterfeiting foreign or nationalcurrency. Furthermore, the agreement con-tains a number of administrative provisionswhich should assure prompt collaborationbetween the police authorities and the banks ofissue. In signing this convention Switzerlandwas unable to assume any obligation as to thepenal clauses of the convention, because thequestion of the introduction of a unified penalcode in Switzerland is still unsettled. Never-theless, the Federal council announced itswillingness to enforce the administrative pro-visions to the extent of its authority.
Reserves of the bank.—During the year theposition of the bank was still further strength-ened. The aggregate reserve of gold and for-eign bills averaged 781,000,000 francs ($150,-733,000) as compared with 723,000,000 francs($139,539,000) in 1928. The ratio of the goldreserve against notes in circulation fluctuatedduring the year between 55.04 per cent and68.05 per cent, and in 1928 between 56.72 percent and 67.81 per cent; the yearly averagewas 63.52 per cent, as compared with 61.89per cent in 1928. The ratio of the reserve ingold and foreign exchange reached a maximumof 99.81 per cent, compared with 98.72 percent in 1928, and a minimum of 82.33 per centagainst 80.62 per cent in 1928; the yearly aver-age was 91.30 per cent, as against 88.37 percent for the previous year. The yearly aver-age of the ratio of the reserve in gold and for-eign exchange against the aggregate of notesin circulation and other demand obligationswas 81.49 per cent.
"Rescriptions."—Since the end of 1928 thebank has not been called upon to discount anybills of the Confederation (Prescriptions"), norhas it had any of them in its portfolio duringthe year. Since the beginning of April no billsof the Federal railways have been presented fordiscount, although in the previous monthssmall amounts were found for short periodsin the portfolio of the bank. The volume ofnoninterest-bearing bills, offered to the bankby the Confederation as cover for the differencebetween the bullion value and the nominal
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
312 FEDERAL RESERVE BULLETIN MAY, 1930
value of 5-franc silver coins of other countriesof the former Latin Monetary Union, amountedat the end of the year to 39,097,500 francs($7,545,818). It will decline in proportion tothe periodical withdrawals of 5-franc pieces bythe Governments mentioned above; and onJanuary 15,1932, when the repatriation of thesecoins will be completed, such bills will no longerfigure in the balance sheet of the bank.
BALANCE SHEET OF THE SWISS NATIONAL BANK ASOF DECEMBER 31, 1929
RESOURCESCash:
Swiss gold coinForeign gold coinGold bars. .Swiss 5-franc pieces __5-franc pieces of other countries of old Latin
Union (60,150,000 francs at 35 per cent, byauthority of art. 19bis of the bank law)
Subsidiary coin _Other cash items
Gold earmarked abroad.._ _ _._ __Foreign exchange on gold standard countriesForeign exchange other than gold exchangeSwiss portfolio:
Swiss bills _.._ _.. .Other discounts
Advances on security:Eligible as cover for bank notes . . .Other
Government securities . . __Due from postal check service ._ _Due from Swiss correspondentsItems for collection _Coupons.. . . . .Interest accrued on securities _Unpaid capitalBank premisesFurniture and fixturesMiscellaneous assets.. _ ______ _.
Total resources
LIABILITIES
Notes in circulation _Giro accounts..Federal accountsOther depositsDrafts and officers' checks _Rediscounts ___CapitalSurplus3
Net profits. _.Dividends unpaid __Reserve for uninsured risks..Reserve for printing bank notesMiscellaneous liabilities
Total liabilities
Francs(in thou-
sands)
193,802139,339225, 671
2,498
21,0531,623
1
583,987
36,175352,872
9, 417
134, 24015,127
149,367
75, 073175
75, 248
5,4391,174
40,1751,1581, 049
16925, 0004,000(2)3,715
1, 288,945
999,185171, 69828, 5277,071
9972,066
50, 0009, 0007,311
131,0001,000
11,078
1, 288,945
Dollars i(in thou-sands)
37,40426,89243, 555
482
4,063313
112, 709
6,98268,104
1,817
25,9082,920
28,828
14, 48934
14, 523
1,050227
7,75422320233
4,825772
717
248, 766
192,84333,1385,5061,365
192399
9,6501,7371,411
3193193
2,138
218, 766
i Conversion at par: 1 franc=$0,193.2 Carried at 1 franc.3 After the transfer of 500,000 francs ($96,500) from the profits of the
year 1929 the surplus will be 9,500,000 francs ($1,833,500).
RECENT CURRENCY LEGISLATION INSWITZERLAND
The Swiss National Bank has pursued sincethe middle of 1925 the policy of maintainingSwiss exchange within the gold points, not-withstanding the absence of legal obligationto redeem its notes. The obligation to re-deem was suspended by a decree of the FederalCouncil under date of June 30, 1914. Thisdecree has now been abrogated, effectiveApril 1, 1930.
At the same time the nature of the bank'sobligation has been altered by legislation whichwas passed by the Federal Assembly lastDecember and became effective April 1. Priorto the decree of 1914 redemption was requiredto be in legal-tender coin, either gold or silver.Redemption must now be effected in goldcoin, gold bullion, or gold exchange, at thebank's option, but with provision requiringthe bank to fall in line with other banks ofissue if and when these other banks undertaketo redeem their notes in gold coin.
The reserve and note-cover requirements ofthe bank have also been modified so as toeliminate silver. Only gold held in Switzer-land may be counted as reserve.
The text of the new law is given in full below.
FEDERAL LAW AMENDING THE FEDERAL LAW OF APRIL7, 1921, RESPECTING THE SWISS NATIONAL BANK
(December 20, 1929)
The Federal Assembly of the Swiss Confederation,with reference to the message of the Federal Counciltransmitted on October 8, 1929, decrees:
I
Articles 14, 19, 20, and 22 of the Federal law of April7, 1921, respecting the Swiss National Bank, are re-pealed and replaced by the following provisions:
ART. 14. The National Bank is a bank of issue, ofclearing, and of discount, and is authorized to carry onthe following operations only:
1. To issue bank notes in accordance with the pro-visions of the present law.
2. To discount Swiss bills of exchange and demanddrafts bearing the names of at least two persons of un-questioned solvency and independent of one another;and to discount Swiss securities eligible as collateral.The maturity of these securities may not exceed threemonths. Bills of exchange and demand drafts of agri-culturists, arising out of commercial transactions, areto be dealt with in the same manner as other bills ofexchange.
3. To buy and sell bills of exchange, demand drafts,and sight balances abroad, as well as treasury bills offoreign governments. Their maturity shall not exceedthree months. The bills shall bear the names of at leasttwo persons of unquestioned solvency and independentof one another.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 313
4. To make advances at interest against collateral(avances sur nantissement).
(a) For a fixed period not to exceed threemonths.
(b) On current account, callable in 10 days atmost.
Shares may not be accepted as collateral.5. To receive deposits without interest; also deposits
in current account, at interest, of funds of the Confed-eration and of the administrative departments and es-tablishments under the supervision of the Confedera-tion.
6. To effect transfers and clearings, to issue drafts,and to make collections.
7. To purchase for its own account interest-bearingsecurities—payable to bearer and readily marketable—of the Confederation, the Cantons, or foreign govern-ments; such operations to be effected only for thetemporary employment of resources at the disposal ofthe bank.
8. To buy and sell, for its own account and for ac-count of others, precious metals in the form of bullionor/coin, and to make advances on these metals.
9. To issue gold certificates.10. To receive for safe-keeping, and to act as trustee
for, securities and other articles of value; to buy andsell securities and to make subscriptions for account ofothers.
11. To assist in issuing loans of the Confederation,and to accept subscriptions to loans of the Confedera-tion and of the Cantons, but without itself under-writing any of these loans.
ART. 19. The equivalent of notes in circulation mustbe covered by—
Swiss gold coins.Gold bullion calculated at the legal monetary rate,
making deduction for cost of minting.Foreign gold coin.Swiss bills of exchange and demand drafts and Swiss
securities.Foreign bills of exchange and demand drafts, treasury
bills of foreign governments, and sight balances abroad.Credits arising out of advances in current account—(a) On securities in conformity with the provisions
of article 14, section 4, subsection (6).(b) On precious metals (art. 14, sec. 8).The metallic reserve shall amount to at least 40 per
cent of notes in circulation. This minimum metallicreserve of 40 per cent shall be held entirely in Switzer-land.
ART. 20. The National Bank is obligated to redeemits notes on demand in Swiss gold coin—
(a) At its office in Berne, without limit as toamount;
(b) At its office in Zurich, as w ell as at thebranches and agencies administered bythe bank, to the extent that the reserveand their own needs permit, but in anyevent with no more delay than is neces-sary to have specie brought from thehead office.
The service of note redemption shall be organizedto meet the needs of the locality.
ART. 20BIS. During such time as the banks of issueof countries designated as important by the authoritiesof the bank do not themselves redeem their notes in
gold coin, the bank shall have the right to redeem itsnotes on demand in one or another of the followingforms:
In Swiss gold coin.In gold bars, of the customary commercial weight
(about 12 kilograms) on the basis of mint parity.In gold exchange (bank deposit or check); that is to
say, in exchange on countries having a free gold market.The rate of conversion of this exchange shall be cal-culated on the basis of the exchange rate of the foreigncurrency at the time of the transaction. It shall not,however, in any case exceed the export point forshipment of Swiss gold coin to the foreign bank on whichthe draft is drawTn. The selection of the foreign cur-rencies [in which redemption is to be effected] is re-served to the National Bank.
Redemption shall be made—In gold coin and gold bars, at the office in Berne
without limitation as to amount; at the office in Zurich,and at the branches and agencies administered bythe bank, to the extent that the reserve and their ownneeds permit, but in any event with no more delaythan is necessary to bring the metal from the headoffice.
In gold exchange at any of the above-mentionedoffices of the bank, without limitation as to amount..
The service of note redemption shall be organizedto meet the needs of the locality.
ART. 22. The Federal Council may not decreethat notes are legal tender nor release the bank fromits obligation to redeem its notes as provided in articles20 and 20 bis except in case of necessity in time of war.
II
The Federal law of September 27, 1923 (art. 19bis ofthe law governing the National Bank), is repealed.
I l l
The Federal Council will fix the date when the presentlaw is to become effective.1
The above law was passed by the Federal Council,Berne, December 19, 1929.fc-rr A\ (The President, MESSMER.(Signed) | T h e Secretary'} KAESLIN.
The above law was passed by the National Council,Berne, December 20, 1929.
n (The President, E.-PAUL GRABER.a; \ T h e s ^ e t a r y t G . BOVET.
The Federal Council issues the following decree:The foregoing Federal law shall be published in
accordance with article 89, paragraph 2, of the Federalconstitution, and article 3 of the law of June 17, 1874,respecting the popular referendum on Federal lawsand decrees.
Berne, December 20, 1929.By order of the Swiss Federal Council.
The Chancellor of the Confederation,KAESLIN.
Date of publication: December 26, 1929.Referendum period ends March 26, 1930.
The referendum period having expired March 26 without any movefor a referendum, the Federal Council fixed Apr. 1, 1930, as the date onwhich the law should go into effect. [Ed.]
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
314 FEDERAL RESERVE BULLETIN M A Y , 1930
FINANCIAL STATISTICS FOR FOREIGN COUNTRIESGOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars. Figures for end of month or latest available preceding date; see BULLETIN for June, 1929, p. 396]
Month
1929—MarchAprilMayJune .JulyAugustSeptember-OctoberNovember...December...
1930—JanuaryFebruaryMarchApril
Total(44
coun-tries)
'10,091'10,048
10,12110,134
'10,15010,233
M0,26110,293
'10,297*10, 290PI 0,351»10,431*10,496
UnitedStates
3,8143,8893,9313,9563,9743,9954,0084,0234,0033,9003,9213,9884,061
* 4,131
Ar-gen-tina
585569564527513507497476452434442448
J>445
Aus-tra-lia
110110106108111113114109978988
124126
Bel-gium
126134134139141141142143151163164164164
Bra-zil
150150151151151151151151151150139
P127
Can-ada
787878767677777778787878
*66
I
Eng-land
748762795780694670648643659711732740759
France
1,3401,4031,4351,4361,4621,5261,5451,5701,6001,6331,6831,6801,668
i
Ger-many
639451420455512520527531534544547582595
In-dia
128128128128128128128128128128128128128
Italy
270270270271271271272272273273273273274
Ja-pan
642542642542541541641541542542520477453
Neth-er-
lands
170174176176181178178178180180177176174
Rus-sia
92929393
103119132142142147147150156
Spain
494494494494495495495495495495495476476
" i "
Swit-zer-land
93959696.9898
103103105115108108108
28othercoun-tries
713708
'708'706'699'703
704'708
708*708*710»713*713
!
v Preliminary, based on latest available figures. ' Revised.NOTE.—Table covers all countries for which satisfactory figures are available; see BULLETIN for April (p. 170), where separate figures for the
44 countries are given by years back to 1913. For the 16 countries here shown separately—all of which have held gold in recent years to the amountof $90,000,000 or more—the figures are for central banks only except as follows: United States—Treasury and Federal reserve banks; Argent ina-Government conversion fund and Bank of the Nation; Brazil—Bank of Brazil and Government stabilization fund; Canada—Government reserveagainst Dominion notes and savings-bank deposits, and gold deposits of chartered banks in the central reserve; India—currency and gold standardreserves of Government; Japan—domestic holdings of Bank of Japan and Government.
GOLD MOVEMENTS[In thousands of dollars]
Month
1929—JanuarvFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
1930—JanuaryFebruaryMarch
United States
Im-ports
48, 57726,91326,47024,68724,09830, 76235, 52519, 27118, 78121,321
7,1238,121
12,90860,19855, 768
Ex- N- .ports ! N e t
l,378i 47,1991,4251 25,4881,635' 24,835l,594i 23,093
467' 23,630550l 30, 2128071 34, 718881| 18,390
1, 205: 17, 5763,805! 17,516
30,289! -23,16672,647| -64,4268,948; 3,960
207 59,991290; 55,478
Germany
Im-ports
1,2501,3381,7011,7681,9467,493
48, 72827, 7289,9394,6245,093
11,0965,052
38. 25215,119
Ex-ports
577764804
223, 247781681716879851
1,002919806629687769
Net
672574897
-221 , 4801,1656,812
48,01226,8499,0883,6224,174
10, 2904,423
37. 56514, 350
Great Britain
Im-ports
11,84412,34725, 73416,14428, 28421,08522, 57817, 22618, 30128, 59136, 24965,34341, 70238,96138, 258
Ex-ports
27,89121,3837,7463,7144,652
40,001100,479
59, 27841,28326,79427,84416,43916,10234,07412, 826
Net
-16,047-9 ,03617,98712,43023, 632
-18,917-77,901-42,052-22,982
1,7968,405
48,90325,600
4,88625,432
Netherlands
Im-ports
504181133165
4,33819012910311617710729724880
Ex-ports
146
14,3202
23178
2,52217121517
3,2241,026
Net
490175
-14,187163
4,315173121
-2 ,419'9916692
280-2 ,975
- 9 4 6
SouthAfrica
Net
-16, 607-17,848- 2 1 , 542-15,871-17,975-22, 625-14,816-20,981—15,375-15,812-20,922-18,220-17,808-20,786
India
Net
4,7307,700
13,0636,5806,0763,5964,1642,7713,3903,1464,4084,603
' 5,3703,8443,473
MOVEMENTS TO AND FROM GREAT BRITAIN[In thousands of dollars]
MOVEMENTS TO AND FROM BRITISH INDIA[In thousands of dollars]
From or to—
FranceGermanyNetherlandsSpain and Canaries.SwitzerlandUnited StatesSouth AmericaBritish IndiaAustraliaNew Zealand. _EgyptRhodesiaTransvaalWest AfricaAll other countries..
Total
1930
March
Im-ports
358
402
~19,"734~
36616,957
37762
38, 258
Ex-ports
3662,290
551
208
5
8,885
12, 826
January-March
Im-ports
9187
19,466
13, 027
~29,"885"
1 17753,1551,125
161
118,921
Ex-ports
11,34138,690
2809
832
" "2,2!0"2
6
9, 619
63, 002
1929
Calendar year
Im-ports
2,0663,203
14,3824
23,09039,129
"24," 603"2,433
4,641184, 954
4,2161,003
303, 725
Ex-ports
162, 52792,9912,006
35910, 78161,293
"16," 320
3,786
833,434
377,505
From or to—
EnglandUnited States. .Aden and dependen-
ciesArabia .,British OceaniaBahrein IslandsCeylon - .ChinaMesopotamiaStraits Settlements._EgyptNatalAll other countries..
Total
1930
January
Im-ports
1, 203
10232
1,8003
1058
194113382
1,417
5,373
Ex-ports
4
4
1929
January
Im-ports
1,012
8013
20219
5189
1712,974
4,733
Ex-ports
2
. .
3
Calendar yrar
Im-ports
10,46122
1,0451,2877,701
1194,151
1882,613
196, 867
29, 595206
64, 275
Ex-ports
1
28
19
48
r Revised.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDEKAL RESERVE BULLETIN 315
CONDITION OF CENTRAL BANKS[Figures are for the last report date of month]
1930 1929
Bank of England (millions of poundssterling):
Issue depar tment-Gold coin and bullionNotes issued
Banking depar tment -Gold and silver coinBank notesGovernment securities __Other securitiesDiscounts and advancesPublic depositsBankers' depositsOther depositsReserve ratio »(per cent)
Bank notes in circulation *
Bank of France (millions of francs):GoldSight balances abroadForeign billsLoans and discountsNegotiable bondsNote circulation..Public depositsOther deposits
German Reichsbank (millions ofreichsmarks):
Gold reserveGold abroadReserves in foreign exchangeLoans and discountsDeposits _Reichsmarks in circulationRentenmarks in circulation
Bank of Italy (millions of lire):Gold at homeCredits and balances abroadLoans and discountsTotal note circulationPublic depositsOther deposits
ank of Japan (millions of yen):GoldAdvances and discountsGovernment bondsNotes issuedTotal deposits
March
155. 1415. 1
.963.844.813.36.1
18.854. 935. 958.1
352. 3
Febru-ary
151.3411.3
.764.534.412.94.7
12.050.736.265.9
346.8
Janu-ary
150.1410.1
.362.154.314.05.5
14.667.536.052.9
348.0
42, 5576, 920
18, 7468, 9435, 396
70, 8266, 8028, 719
2,346150387
2,269457
4,806382
42,8556,95618,7387,9875,453
116
42,9216,98418,7328,5175,45370339
5 , 5 3 5,71,116 i 70,3398, 767 ! 10,1727,136 | 7,512
5,2024, 8584, 37916,322
3001,436
912755131
1,270706
Commonwealth Bank of Australia(thousands of pounds sterling):
Issue department-Gold coin and bullion jSecurities |
Banking department— ICoin, bullion, and cash JMoney at short call in Lon-
donLoans and discountsSecurities. __Deposits
Bank notes in circulation
Austrian National Bank (millions ofschillings):
Gold - -Foreign exchange of the reserve._Other foreign exchangeDomestic billsGovernment debt- -Note circulation..Deposits
2,294150384
2,288469
4,722 !384 •
2,147150397
2,222357
4,653392
j5,1904,855 !
4,614 j16,095 i
300 i1,663 :
5,1894,9114,713
16, 329300
1,560
3 965 !3 755 I3 144 !
3 1, 277 j3 733 i
1,066732179
1,347822
17,40312,552 !
10, 252 I42,083 :39,635 i
March
153.3413.3 |j
5L5 |!50.617.113.019.758.236.445.4
361.8
34,18610,57718,4349,1605,930
64, 57511,6176, 603
2, 55313036
2,488478
4,822515
5,1265,3345,21416, 396
3002,125
1.003793175
1,247789
22, 58121, 740
National Bank of Belgium (millionsof belgas):
Gold -Foreign bills and balances in gold.Domestic and foreign billsLoans to StateNote circulationDeposits
Bank of Brazil (millions of milreis):GoldCurrencyCorrespondents abroadLoans and discountsSecuritiesNote circulationDeposits
National Bank of Bulgaria (millionsof leva):
GoldNet foreign exchange _Total foreign exchangeLoans and discounts __Government obligations.Note circulationOther sight liabilities
Central Bank of Chile (millions of
1, 404325718
1,2453,3393, 3501,780
Gold at homeDeposits abroad. _Loans and discountsNote circulation.Deposits
Bank of the Republic of Colombia(thousands of pesos);
Gold at homeGold abroadLoans and discounts _.Note circulationDeposits _
Czechoslovak National Bank (mil- jlions of Czechoslovak crowns): I
Gold ;Foreign balances and currency...Loans and advances _Assets of banking office in liqui- |
dation INote circulationDeposits
Danish National Bank (millions ofkroner): I
GoldForeign bills, etc -Loans and discountsNote circulation__ _ _.Deposits _
Bank of Danzig (thousands of Dan-zig gulden):
Balances with Bank of England .Foreign bills, etcLoans and discountsNote circulation _Deposits - .
Bank of Estonia (thousands ofkrones):
Gold —Net foreign exchangeLoans and discountsNote circulationDeposits-
GovernmentBankers. .Other
63 !340 i128 j35() :118 i
63385 !121 :
353158 i
501103344181
i 21,3159,477
I 17,689! 33,241: 6.573
21,27010,89717,97934, 2466,720
I,2ti2 ;1,907 !639
3527,011417
1,2621. 980292
3546.838 '395 i
1,2622,039364
3556,923407
172 i101
35231 i
15,3479,47225,05936, 6611. 659
17212S7935229
17210678
34735
H,502 ]13,328 !20,155 ;36,0451.C96
13,96913,88320,48136, 2811,333
0,461 -0,450 :19,800 ! 18,13428, 330 , 28,202 :33,1(59 i 33,332
13,948 9,2893,422 i 5, 112 :1,849 I i,4S0 :
6,43719,47827,81932, 260
8,7336,1872,102
6}41392366114
25, 39526, 55416, 95451,0729,360
1,1581,781527
4227,333350
173887135727
16,06913,96725,32938, 7392,116
6, 24322, 25731, 62836, 259
14, 5942,2082, 934
1 Ratio of gold and notes in banking department to deposit liabilities.2 Notes issued, less amounts held in banking department and in currency note account.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
316 FEDERAL RESERVE BULLETIN M A T , 1930
CONDITION OF CENTRAL BANKS—Continued[Figures are for the last report date of month]
1929
Bank of F in land (millions of Fin-nish m a r k s ) :
Gold - - —Balances abroad and foreign
credits •Foreign billsDomestic bills -Note circulation __Demand liabilities
Bank of Greece (millions of drach-mas):
Gold -Net foreign exchange in reserve.Total foreign exchangeLoans and discountsGovernment obligationsNote circulationOther sight liabilities
National Bank of Hungary (mil-lions of pengos):
GoldForeign bills, etcLoans and discountsAdvances to treasuryOther assetsNote circulationDepositsMiscellaneous liabilities
Bank of Java (millions of florins):Gold.Foreign billsLoans and discountsNote circulation- ...Deposits
Bank of Latvia (millions of lats):GoldForeign exchange reserveBillsLoans -Note circulationGovernment depositsOther deposits
Bank of Lithuania (millions of litas):GoldForeign currencyLoans and discountsNote circulation. _Deposits
23,970 ;48,292 J92,55254,909 I48,443 !90,824 I60,849 !
Netherlands Bank (millions offlorins):
Gold.Foreign billsLoans and discountsNote circulation __Deposits -.
ank of Norway (millions of kroner):Gold _Foreign balances and billsDomestic creditsNote circulationForeign depositsTotal deposits
Reserve Bank of Peru (thousands of
Gold .._ -Gold against demand deposits.Foreign exchange reserveBillsNote circulationDeposits
March
302
565 I3,4724,588 !
123 :3,790 '•5,488 I2,122 :'
96
49, 5194,2016,02524,49859,9198,354
458198 !68 :
46,9746,7528,18826,58861,01611,102
51,2812,4459,61117,16960, 7514,012
Bank of Poland (millions of zlotys):Gold at homeGold abroadForeign exchange of the reserve..Other foreign exchange _.Loans and discountsNote circulationCurrent account of the treasury..Other current accounts
Bank of Portugal (millions of escu-dos):
Gold _.Balances abroad _BillsNote circulationDeposits ...
National Bank of Rumania (millionsof lei):
Gold at homeGold abroad _ _.Foreign exchange of the reserve..Other foreign exchange. _.Loans and discounts _.State debt _.Note circulationDeposits
1930
March , Febru-ary
483219325116697
1.324162146
521180360100739
1,282290166
State Bank of Russia (thousands ofchervontsi):
Loans and discountsDepositsIssue department—
GoldOther precious metalsForeign exchangeNote circulation
South African Reserve Bank (thou-sands of pounds sterling):
GoldForeign billsDomestic billsNote circulationDeposits-
GovernmentBankers _Others _
Bank of Spain (millions of pesetas):GoldSilverBalances abroadLoans and discountsNote circulationDeposits
Bank of Sweden (millions of kronor):GoldForeign bills, etcLoans and discountsNote circulationDeposits
Swiss National Bank (millions offrancs):
GoldForeign balances and billsLoans and discounts _Note circulationDemand deposits
National Bank of the Kingdom ofYugoslavia (millions of dinfirs):
GoldForeign notes and creditsLoans and discountsAdvances to StateNote circulationDeposits
, !165336
1,87959
275359
1,90677
J
5,3073,9193,610
229, 6615,19719, 5188,487
5,2803,9195,063
399,5295,46919, 7679,097
J5O9,965311,114
29,0803,2986,813
153, 580
7,3156,6331,2118,436
2,4504,737393
2,46871634
2,0184,365833
244262302575159
561335119918122
96291
1,3192,9975,3631.397
7,6806,2372,3339,032
2,5734,860250
3 2,4673 7143 185
3 2,0413 4,431
244234298534166
Janu-ary
1929
March
521180372101756
1,247300154
313361
1,972. 108
472,486268,314
28, 5673,4146,687
150,027
7,9146,0273,0819,156
1,7405,178386
2,56771186
2,0624,3991,017
244237296521183
561 I 560344 378120 I 135893 890129 I 188
96291
1,3772,9995, 5fiO1,409
2761, 434.2,9995,5861,372
427195530129790
1,333270242
326280
1,85272
5,0213,5913,6551,1338,05110,080.20,96410,151
358,006206,156
17,8334,3599,165
110,212
8,2067,7131,4129,498
1,6135,613244
2,56071695
1,8374,243
235189374544174
481218242886111
92192
1,6552,9665,265729
• Figures are for Mar. 1, 1930.* The February balance sheet of the Reserve Bank of Peru is in terms of the new currency unit, the sol (par $0.4000), exchangeable for the old
libra (par $4.8665) at the rate of 10 to 1. To preserve comparability figures for previous months have been converted from libras into soles.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A T , 1930 FEDERAL RESERVE BULLETIN 317
CONDITION OF COMMERCIAL BANKS
Country
Canada:Gold coin and bullion l .Curient loans and discountsMoney at call and short noticePublic and railway securitiesNote circulation .Individual depositsGold reserve aeainst Dominion notes _.Dominion note circulation
Argentina:Bank of the N a t i o n -
GoldOther cashLoans and discountsDeposits
Other banks in Buenos Aires-GoldOther cash . _Loans and discountsDeposits
England:Cash in vault and at banksMonev at call and short notice\dvanccs and discountsInvestmentsDeposits
France:Bills and national-defense bondsLoans and advancesDemand depositsTime deposits
Germany:Bills and treasury notesDue from other banksMiscellaneous loansDepositsAcceptances - .
Italy:CashBills discountedDue from correspondentsDue to correspondents _ _ .Deposits ..
Denmark:Loans and discountsDue from foreign banksDue to foreign banksDeposits and current accounts . _
Norway:Loans and discountsDue from foreign banks _ _ _Due to foreign banksRediscounts _ .Deposits
Sweden:Loans and discounts .Foreign bills and credits abroadDue to foreign banksRediscountsDeposits
Japan:Cash on handTotal loansTotal deposits
Millions of nationalcurrency
1930
Janu-aiy
Febru-aiy
Millions of d(61 60
4491,641
431
4281,628
423156 159
2, 485 2, 45563 i 63
173 167Mill ions of p
7 ' 7124584731
11170908
1,003Mill i
192142
1,213233
1, 767Mill
115t!57£0
11181911983
March
)llars
esos
ons of poundssterling
182 181120 133
1,192 1,157229 225
1,714 ! 1,682ions of francs
Millions of reicri 3 US
Mi
1,1608, 561
12 035
smarks3,2341,1828,619
12. 259525 i 510
Uions of lire
i
Mill1,787
12874
1,941Mill
1,2391237692
1,524Mill
4, 275297125156
3, TOOMi
2762,1482,072
ons of k1,810
11584
1,971ons of k
1 2331177592
1,521ons of k
4,324265120154
3,621
roner
roncr
onor
llions of yen238 230
2,1572,063
2,1C72,050
Millions of dollais
Janu-ary
641,481
595530158
2,59559
120143493751
11195821982
964716
5,9891,2158,805
838376
1, 35637
457i 43
23| 512
\ 348! 33i 22
27I 425
1 1,104i 74
3444
! 946
118946957
Febru-ary
641,506
597530162
2,56059
120138506753
11190832976
918649
5,9751,1978,648
826421
1,37042
61470268711ieo462
4525
520
348342227
426
1,109713345
945
156936953
1929
March
631,560
560524189
2,56058
120120512745
12184839991
898650
5,8151,1878,463
816398
1,32337
4624524
520
347312327
420
1,107714062
949
116934953
Octo-ber
621,715
521487185
2,67960
40122558704
12146844952
920733
5, 8291,1718,587
804424
1,30641
679342
1,9312,777
118
604342997211C4
4773916
529
336382327
414
1,1411 94
3947
954! 157
974990
Novem-ber
611,684
532475187
2,63660
29113564694
12145835929
907707
5,8421,1428,522
819421
1,29141
687293
1 9692,774
116
Decem-ber
611,653
507448175
2,60560
2979
576681
11146831925
979700
5,8291,1478,628
826421
1,28542
4763716
526
336342326
412
1,141803145
944
1681,0031,021
4793819
526
335322124
412
1,117793067
933
1561,0581,023
Janu-ary
61449
1,641431156
2,48563
173
1112£34668
11155829916
935692
5,7031,1348,C00
834420
1,29839
4793420
520
332332025
408
1,146803342
965
1381,0711,033
1930
Febru-ary
60428
1,628423159
2,45563
167
199
532649
11156789850
883621
5,7991,1138,341
750276
2,0392,867
125
4853123
528
330312025
408
1,158713241
970
1191,0751,028
March
882645
5, 6311,0968,185
770282
2,0522,920
122
1141,0801,022
* Not including gold held abroad.
NOTE.—Banks included are as follows: Canada—Chartered banks; England—nine London clearing banks; France—three commercial banks;Germany—six Berlin banks; Italy—four private banks; Denmark, Norway, and Sweden—joint stock banks; Japan—Tokyo banks.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
318 FEDERAL RESERVE BULLETIN MAY, 1930
DISCOUNT RATES OF CENTRAL BANKS[Rate prevailing May 3, 1930, with date of latest change]
Country : Rate
Austria i 6Belgium 3Bulgaria : 10Chile I 6
Colombia _. 9Czechoslovakia.: 5Danzig., 5Denmark 4Ecuador 9
In effectsi n e e -
Mar. 22,1930May 1,1930July 2,1929Oct. 22.1928
Nov. 20,1929Mar. 8,1927May 2,1930May 3,1930Jan. 10,1930
Country
England..Estonia. . .Finland...France
Germany .GreeceHungary..IndiaItaly
Rate
38
2X
59666
In effectsince—
May 1,1930Oct. 3,1929Apr. 28,1930May 2,1930
Mar. 25,1930Nov. 30,1928Mar. 29,1930Apr. 3,1930Apr. 24,1930
Country
JapanJavaLatviaLithuania...
NetherlandsNorwayPeru.Poland
Rate
5.484H6-77
3
?
In effectsince—
Oct. 10,1927Mar. 10,1930Apr. 1,1928Feb. 1,1925
Mar. 25,1930Mar. 21,1930Nov. 23,1929Mar. 14,1930
Country
PortugalRumaniaRussiaSouth Africa
SpainSwedenSwitzerland.Yugoslavia..
Rate
8986
5 ^
36
In effectsince—
July 27,1926Nov. 26,1929Mar. 22,1927Aug. 17,1929
Dec. 19,1928Apr. 3,1930Apr. 3,1930June 23,1922
Changes.—Belgium—May 1, from 3J-3 to 3 per cent; Danzig— May 2, from 5H to 5 per cent; Denmark—May 3, from m to 4 per cent; England—May 1, from 3lA to 3 per cent; Finland—Apr. 28, from 7 to 6lX2 per cent; France—May 2, from 3 to 2% per cent; India—Apr. 3, from 7 to 6 per cent;Italy—Apr. 24, from 6>£ to 6 per cent; Sweden—Apr. 3, from 4 to 3J>£ per cent; Switzerland—Apr. 3, from 3H to 3 per cent.
MONEY RATES IN FOREIGN COUNTRIES
England (London) Germany (Berlin) Netherlands (Amster-dam)
Month
1929—January....February...MarchAprilMayJune
JulyAugustSeptember.OctoberNovember-December..
1930—JanuaryFebruary...March
Treasurybills, 3months
Day-to-day Bankers'allowance
m o n e y ondeposits
4.294.965.305.185.215.35
5.395.485.636.195.304.75
4.043.722.55
3.414.334.514.434.674.23
4.544.354.395.455.154.23
3.623.763.20
Privatediscount
rate
5.805.806.316.637.497.50
7.397.187.187.286.896.98
6.335.535.12
Money for1 month
Day to-daymoney
7.517.077.307.579.659.89
9.359.439.489.068.298.78
7.716.720.35
5.136.336.976.859.327.90
8.217.427.868.067.798.14
6.036.015.57
4.20 I4.394.64 !
5.365.375.30
5.205.065.365.154.263.52
2.992.80 !
P 2. 50 !
4.4b4.785.055.815.885.30
4.904.685.324.524.173.87
2.852.94
»2.61
Switzer-land
Privatediscount
rate
3.283.313.393.453.343.26
3.193.333.383.383.323.15
2.972.712.60
I BelgiumI (Brussels) i
MonthPrivatediscount
rate
1929—JanuaryFebruary |March . . _!April !M a y . .JuneJuly. !August. . !September jOctober |November jDecember !
1930—January iFebruary :March j
3.973.973.973.973.963.974.044.934.944.944.574.403.403.413.31
France i Italy(Paris) (Milan) Austria (Vienna)
Privatediscount
rate
3.503.393.373.443.493.503.503.503.503.503.503.503.382.912.70
Privatediscount
rate
5.836.006.316.756.836.756.766.857.017.187.007.007.006.956.57
Privatediscount
rate
Moneyfor 1
month
7*4-8%7J4-8H7H-8M7^-8948 -98H-98H-68)4-9SH-9H9 -10834-10
7 -8
HungarySweden(Stock-holm)
Japan (Tokyo)
Primecommer- j Day-to-day
cialpaper! ™™?
Loans up ! D i s c o u n t e dtO 6 h l l
months b l U s
8?410H9 -10J4SH -9%m 9%
6J4-8J46*4-8*46 H 8 H
4H-6H;
7 -97 -9
-9
-8*48
7
77 86?4-8734-86H-7*47 -m
45^-7
4^-6
5.84-6.215.66-5.845.66-5.845.48-5.665.48-5.665.48-5.665.48-5.66
5.485.485.485.485.485.485.48
Callmoney
overnight2
2.372.923.103.653.293.293.103.102.923.473.473.102.743.83
p Preliminary.1 The Brussels rate, formerly derived from the Bulletin Mensuel, Banque National Suisse, is now obtained from the-Bulletin d'Information et
de Documentation, Banque Nationale de Belgique. The rate quoted is that for the private discount of "commercial," as distinct from* 'financial,"paper.
2 The rate previously quoted for call money in Tokio represented the range of the high and low for the month. The rate now quoted representsthe average for the month of the rates prevailing daily.
NOTE.—For sources used, methods of quotation, and back figures, see BULLETIN for November, 1926, April, 1927, July. 1929, and November, 1929.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 319
FOREIGN EXCHANGE RATES[Monthly averages of daily quotations.* In cents per unit of foreign currency]
CountryPar
Monetary unit j ofex-i change
Austria SchillingBelgium j BelgaBulgaria ! Lev _Czechoslovakia..J CrownDenmark ! Krone
England ! Pound _Finland i MarkkaFrance Franc.Germany ReichsmarkGreece- Drachma.Hungary.- | Pengo—
Ita ly . . .NetherlandsNorwayPolandPortugal-
RumaniaRussia 2
SpainSweden
Lira-FlorinKroneZloty
J 14.07-I 13.90
"j 2*. 96_• 26.80
486. 652.523.92
23.821.30
17.49
5.2640.2026.8011.22
Switzerland. > F ranc .Yugoslavia Dinar.
Escudo 108.05
Leu | .60ChervonetzPesetaKrona -
1930
February March j April
14.060513.9271
.72122.9590
14.070513.9373
.72162. 9622
NORTH AMERICA
Canada.Cuba. . . .Mexico-
514. 6019.3026.8019.3019.30
Dollar..Peso.
_do_.
100.00100.0049.85
4U. 1 *JOA
486.17852. 51623.915523.87111.296217.4769
5. 234640.102826. 721211.19354.4957
. 5950•515.0000
12. 695526. 826219. 29381. 7604
99. 2408100. 031347.4758
486. 30852. 51663.913223. 85731. 296017.4738
5. 237540.106626. 758911. 20274.4930
.59533515. 000012. 313126. 856319.34531. 7637
99. 763799. 959647.4921
14.080113.9565
.72212.9621
26.7745
486.31042.51713.9185
23.86841.2967
17.4718
5.241540.201326.771911.20374.4954
.5957'515.0000
12.482826.879f)19.37901. 7674
99. 950199.918947.5414
Country Monetary unitPar
of ex-change
SOUTH AMERICA
ArgentinaBolivia 2
BrazilChileColombia 2
Ecuador 2
Peru 2
UruguayVenezuela 2
ASIA
PesoBoliviano.Milreis
doSucreLibraPesoBolivar. _.
China 4
China *China*Hong Kong 4__India.JapanJava 2
Straits Settle-ments.
Turkey
AFRICA
Egypt
Mexican dollar.Shanghai tael._Yuan dollar
96.4836.5011.9612.1797.3320.00
486. 65103.4219.30
;3. 5846.3032.84
Dollar I 33.34Rupee _ 36.50Yen 49.85
40.2056.78
FlorinSingapore dol-
lar.Turkish pound. 439.65
Egyptian pound 494.31
1930
February March April
86.531136.000011.153312.031996. 390020.0000
400. 000088.967919.2500
34. 396347.961634. 274638. 235036.207149.129540. 079156.0006
* 46. 7776
5 500.6147
85.635736.038511.501212.051896. 390020. 0000
400. 000089.013719. 2408
33. 810047.113233. 600937. 223836.113849.329840.136555. 8994
•5 47. 3035
6499.2997
88.634936.500011.720612.054996.390020.0000
400.000092.900119.1300
33.667046.903733.382237.190536.116349. 366140.235055.8744
7 46.6955
498.9970
1 Based on noon buying rates for cable transfers in New York.2 Averages based on daily quotations of closing rates as published by New York Journal of Commerce.8 Chervonetz quotations nominal.* Silver currency. The figure given for parity represents gold value oi unit in April, 1930, computed by multiplying silver content of unit
by New York average price of silver for April, 1930, which was $0.42740 per fine ounce. On the same basis, parity in April, 1929, for the Chinese-Mexican dollar was 43.98 cents; for the Shanghai tael, 60.64 cents; for the Yuan dollar, 43.02 cents; and for the Hong Kong dollar, 43.66 cents.
fi December, 1929.« January, 1930.i February, 1930.Back figures.—See BULLETIN for January, 1930, 1929, and 1928.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
320 FEDERAL RESERVE BULLETIN M A Y , 1930
PRICE MOVEMENTS IN PRINCIPAL COUNTRIESWHOLESALE PRICES
ALL COMMODITIES
Country
1929 1930
Jan. Feb. \ Mar. i Apr. May June i July Aug. I Sept. Oct. Nov. \ Dec. Jan. Feb. Mar.
United States
CanadaEnglandFranceGermanyItalyJapan
AustraliaAustriaBelgiumChinaCzechoslovakiaDenmarkDutch East IndiesEgyp t . .FinlandHungaryIndiaNetherlandsNew ZealandNorwayPeruPolandRussiaSouth AfricaSpainSwedenSwitzerland
97 :
94 j138 !657 I139;461 '228 j
15712886716013915114912510013214514615514918698
177135171144143
97 j
96 i138 j660 !139 j463 :226
156130865162139159149122100136144146
' 15515018599
177
140 I654 i140 !461 i226 !
15713386916414115415012310013614314715515018999
178
97
94139648137455225
15813486216114115014812099135140 !144 i
'155 ;148 ,185 ,98 '179 I131 !174 !141 |140 !
92 i136 j643 I136 i452 !223 j
15613585116213714815011498
12313914215514618695180
171140139
96
93 ;136629135
?447222
158134848 :163 :134 i146149 :10898122 i138 I141 '155 i147 i186 !95 i
181 i
170 i139 i139 !
98
137624138440220
1591328581631351491491099711914214115614918796180129169140143
98 i136 !598 ;138 l437 i218 I
160 ;132 i850 I165:134 i150 !148 i112 ;97 ,114 I143 i142 i156 |148 ;187 :95 !180 I
97136608138437218
163 !128 !846 !167 i132 !150 j148 !113;96 i109 I143 i141 j157 j148 i186 I94 i181 j
170 i141 '143 I
171140142
97136607137436216
1611278381681311491471159611114014015614718693182128172138142
94
96134603136431211
94
96133596134425205
158;125 i834 !165 '130 :147 i146 I112 i95 !107 ;137137 '15514618495181
154 !123 I823 j1651281461441109510713413515414618292182
1711 3 5 ••140
172134139
93
131r576132417201
1511258081701261431431099410613113115514418188182121172131136
92
94128
'567129408199
147123791175124140
1069310412612615514318185
128133
91
92125558126400196
121774174122136
125
142180
85
125131
' Revised.
NOTE.—All of the indexes shown, with two or three exceptions, are compiled by official agencies in the countries to which they relate, as indi-cated specifically in the BULLETIN for March (p. 124), where references are also given to sources in which current figures of the index numbers maybe found.
The base periods, which were systematically indicated in the BULLETIN for April (p. 256), are as follows: United States—1926; Australia—July,1914; Austria—January-July, 1914; Belgium—April, 1914; Canada—1926; China—February, 1913; Czechoslovakia—July, 1914; Denmark—1913; DutchEast Indies—1913; Egypt—January 1, 1913-July 31, 1914; England—1913; Finland—1926; France—1913; Germany—1913; Hungary—1913; India—July,1914; Italy—1913; Japan— October, 1900; Netherlands—1913; New Zealand—1909-1913; Norway—December 31, 1913-June 30, 1914; Peru—1913; Poland—1927; Russia—1913; South Africa—1910; Spain—1913; Sweden—1913; Switzerland—July, 1914.
Annual indexes for the years 1925-1929, and in certain cases for 1913 and 1914, were given in the BULLETIN for April.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 321
WHOLESALE PRICES—Continued
GROUPS OF COMMODITIES
Country and group1929
Jan. Feb. i Mar. Apr. May June July Aug. i Sept. Oct. Nov. Dec.
UNITED STATES (1926=100)
Farm productsFoodsHides and leather products..Textile productsFueljand lighting materials.Metals and metal products..Building materialsChemicals and drugsHousefurnishing goodsMiscellaneous
NonagriculturaL.
ENGLAND (1913=100)
Total foodCerealsMeat and fishOther foods...
Total not food..Iron and steelCoalOther minerals and metals.._Cotton.__WoolOther textilesMiscellaneous
FRANCE (1913=100)
Farm and food productsAnimal products.Vegetable products
All industrial productsMinerals and metalsTextilesHides and leatherChemical productsRubberPaper,. ___LumberCement and brick, e tc . .
GERMANY (1913=100)
Total agricultural products __Vegetable foodsCattle.. _Animal productsFodder
Provisions.. _Total industrial raw materials and
semifinished products. _CoalIron.Nonferrous metalsTextilesHides and leatherChemicals.. „Artificial fertilizersTechnical oils and fats _ _RubberPaper materials and paper. _.Building material
Total industrial finished products.Producers' goodsConsumers' goods
I
10699
114
10497
95
148140144159133113120111162180136139
610632
541820568592123677930592
132130118147138124
13413812811315313912787 I127 i28 i151 j157 i159138175
105981099681104989697
94
I149 i142144160133113123114159177136137
642607693551812530590141677930592
1181491311268712634151157158138174
107 | 105
108 I96 !81106999697
95
150140145165135113130123162175135136
603612692568802498596140677930592
134132120151140125
134139128
134133123142142128
1341381281321501301278812634151157158137174
108968110698959779
95
147137146158134114126123159174134135
605610602688558793499596132677930606
128130122127140127
1331361281271481291268812629150157158138173
10298107948110597949780
94
144133146152132115121118155172131134
607595614675560771453598129677968606
126125120130133125
131136128118 I14412012687 i126 |30 |151157158138172
me
10399108938310596939780
95
143132144155131115121118154167131134
584614565668560758450586126677969606
125120127130122124
1321361301181411231278712530151158158138172
July
108103109938210597939781
96
149143144158131115121117153163131136
578603563664561748445579133677969636
132131134136127128
131137131118139124126
' 8112731152159157139171
ug.
107103110938110497949781
94
144146145144131115121117154161132134
524590484664562745442593129677969636
133130134140123130
132137
Sept.
107103111938110498949782
95
143141143145132115126116154158132138
551639499656561725452603117677969636
133125134149120131
132137
131 !118 i137 I122 I127 |82 ;129 !29 j152 i1 6 1 •158 !140 !171 i
131 i118 !136122 ::127 I82 !134 '28151162157140170
Oct.
104101111938210498949781
94
145137148150131115128114152154130.137
556670487652567705455608114677
1,003636
132122134153113126
131138131116133121127
Nov.
10199108928210296949780
93
142132150145129115128111147156127134
55568647664556669443260696685
1,003636
128119128153107120
130139130113130118127
8213226151162157140170
8312923152161157139169
10299107908110296949780
92
141132158135128115130111144152125131
54669545664056868443360397685987636
126120126146105115
1291381301121281161278413022151161156140169
1930
Jan. Feb. Mar.
10197105
10196939779
91
139129154135127115130110141145123130
'512'647432630571655438602
708
12211712813498115
1281381301121251161278512821151158156140168
96104887910196929779
91
135122152133124115129 ;
1101 3 4 •135120129 :
'503' 634'424623570639439
'61394667 ;
987708
116112123129 I88115
1271381291111181141278612722150158155139166
9594103877710195919778
90
129114145131122115127107131129116127
495622419612562621425607906C7987708
11010911611886118
1261381291091141111278612622150157153139163
NOTE.—For corresponding indexes for all commodities, see preceding page. Annual indexes for the groups shown in the table are given in theApril BULLETIN for the years 1925-1929 and also for 1913. For current figures of the group indexes given in this table the following sources may beused: United States—Wholesale Prices of Commodities, Bureau of Labor Statistics, Department of Labor; England—Board of Trade Journal andCommercial Gazette, Board of Trade; France—Bulletin de la Statistique Ge"ne"rale de la France, Supplement Mensuel, Statistique Ge*ne"rale de laFrance; and Germany—Wirstschaft und Statistik, Statistisches Reichsamt.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
322 FEDERAL RESERVE BULLETIN MAY, 1930
LAW DEPARTMENT
Passage of trust powers upon consolidation of a na-tional bank and a State trust company.There is published below a copy of the
opinion of the Supreme Court of Tennessee inthe case of First National Bank of Chattanoogav. Chapman Company, 22 S. W. (2d) 245, inwhich it is held that a national bank resultingfrom the consolidation of a State trust companywith a national bank under the charter of thelatter, pursuant to the provisions of the act ofCongress of November 7, 1918, as amended bythe act of February 25, 1927, succeeds to therights of the State trust company as trusteeunder a deed of trust covering real estate. Thedecision, which is believed to be of unusualinterest to national banks, discusses and dis-tinguishes the case of Ex parte WorcesterCounty National Bank, 279 U. S. 347, theopinion in which was published in the FEDERALRESERVE BULLETIN for June, 1929, at page 407.
IN THE SUPREME COURT OF TENNESSEEFirst National Bank of Chattanooga et al. v. Harry E.
Chapman Co. et al., Dec. 9, 1929, 22 S. W. (2d) 245
GREEN, C. J.: This proceeding was brought underthe declaratory judgments statute (Pub. Acts 1923,c. 29), and the question presented is whether a nationalbank with which a State bank has been consolidatedsucceeds, by virtue of the consolidation, to the rightsand title of the State bank as trustee under a trustdeed conveying real estate to secure the payment ofcertain notes, with power of sale in case of default.
The Chattanooga Savings Bank & Trust Companywas a Tennessee corporation engaged in the bankingbusiness with power to act as trustee and in otherfiduciary capacities. On January 29, 1929, thisinstitution consolidated with the First National Bankunder the provisions of an act of Congress passedFebruary 25, 1927, adding a new section, 3, as anamendment to the act of Congress November 7, 1918(12 U. S. C. A., sec. 34a). All assets of the Statebank were turned over to the national bank, and theformer bank ceased the transaction of business.
Previous to this consolidation, W. R. Smith and wifeconveyed to the Chattanooga Savings Bank & TrustCompany, as trustee, described real estate in Chat-tanooga to secure the payment of a series of notes infavor of Harry E. Chapman Company, aggregating$3,529.13. The trustee was authorized upon default,after due advertisement, to offer the land for sale forthe satisfaction of the indebtedness secured. Smithand wife are now in default in the payment of theirnotes, and the First National Bank is proposing toadvertise and sell the land according to the terms ofthe trust deed, claiming to have succeeded to therights, title, and powers of the trustee named in theinstrument aforesaid.
Section 3, above mentioned, provides that anybank, including a trust company incorporated underthe laws of any State, may be consolidated with anational banking association, located in the samecounty, under the charter of any such national bankingassociation or under such terms and conditions as may
be lawfully agreed upon in the manner specified; andthat all the rights, franchises, and interests of suchState bank "so consolidated with a national bankingassociation in and to every species of property, real,personal, and mixed, and choses in action theretobelonging shall be deemed to be transferred to andvested in such national banking association into whichit is consolidated without any deed or other transfer,and the said consolidated national banking associationshall hold and enjoy the same and all rights of property,franchises, and interests, including the right of succes-sion as trustee, executor, or in any other fiduciarycapacity, in the same manner and to the same extentas was held and enjoyed by such State * * *bank so consolidated with such national banking asso-ciation. * * * No such consolidation shall be incontravention of the law of the State under which suchbank is incorporated."
Referring to the last sentence of the section justquoted, it may be observed that the consolidation, asit is termed by Congress, of a State bank with a nationalbank is not in contravention of the laws of Tennessee.Section 23 of chapter 20 of the acts of 1913 authorizesa consolidation or merger of banks incorporated underthe laws of this State with other banks, upon the ob-servance of prescribed procedure and permission of thesuperintendent of banks. This section of the act of1913 has been construed to authorize the consolidationor merger of banks chartered under the laws of thisState with national banking associations by the super-intendent of banks, and we have no disposition toquestion this construction.
In Casey v. Galli, 94 U. S. 673, 24 L. Ed. 168, theSupreme Court sustained the power of Congress toauthorize the transmutation of a State bank into anational bank, although there was no authority in thecharter of the former bank or in the laws of the Stateof its incorporation so to change its organization.Doubtless, therefore, it is within the power of Congressto authorize the consolidation of a State bank with anational bank in the absence of any State legislationto the contrary. Petition of Worcester CountyNational Bank, 263 Mass. 444, 162 N. E. 217. Asjust seen, the laws of Tennessee appear to sanction,rather than forbid, such consolidation, or remainsilent.
The consolidation of the two corporations, generallyspeaking, being valid, the question remains as to thevalidity and effect of that provision of section 3 under-taking to make the consolidation, ipso facto, trans-fer to the national bank "the right of succession astrustee, executor, or in any other fiduciary capacity."
The maker of this trust deed entered into a bindingcontract whereby the Chattanooga Savings Bank &Trust Company was made trustee under the trustdeed, with a right of foreclosure and sale in case ofdefault, and the proceeds of the sale were to be applied"first to paying the costs and expenses of this trustand its execution," and the remainder of the proceedsto the indebtedness and any balance turned over to themakers of the instrument. A property right was thuslawfully conferred upon the Chattanooga SavingsBank & Trust Company. It was a valuable right.Since institutions like this one have been empoweredto act as trustees and in other fiduciary capacities, alarge part of their business is of this nature, and muchof their income is derived from such sources.
Upon a review of the authorities, this court has saidthat, when a valid consolidation or merger of cor-
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 323
porations is made with " transfer of rights and prop-erties, and assumption of liabilities between the oldand new companies are effected, the new companystands in the stead of the old companies, and mayenforce the rights of the old companies, and be subjectedto their liabilities." Miller v. Lancaster, 5 Cold. 514.Approved in Memphis Water Co. v. Magens & Co.,15 Lea., 37.
The law is elsewhere declared to the same effect."Generally by express provision of the statute or
agreement of consolidation, and by implication in theabsence of a provision to the contrary, the consolidatedcorporation succeeds to and may enforce the rights ofthe consolidating corporations under contracts madeby them before the consolidation." Clark and Mar-shall on Corporations, sec. 355b.
See, also, 14a C. J. 1069 and cases referred to in peti-tion of Worcester County National Bank, supra.
We are not able to take the right to administer atrust of this nature out of the rule governing the con-tract or property rights generally of a corporation con-solidating with another corporation.
The reason ordinarily forbidding the transfer or dele-gation of the office or duties of trustee to another isthat "the performance of the trust is a matter of per-sonal confidence, which it is a breach of trust in thetrustee to make over to a stranger; and the originaltrustee will continue responsible for all the acts of theperson so substituted." Colyar v. Taylor, 1 Cold. 372.
Such consideration can not reasonably influence theappointment of a corporate trustee. Personal confi-dence can not be the basis of such a selection. Thestockholders, the officers, the entire management of acorporation may be expected to change from time totime. These things are sanctioned by law and consti-tute, on the part of the corporation, no breach of itsduty as trustee. So the law sanctions the consolida-tion of one corporation with another corporation or-ganized for like purposes, and those appointing a cor-porate trustee do so with knowledge that such a unionmay take place carrying all the rights and propertiesof both entities into combined organization. Suchconsolidation, authorized by law, is no more a breachof trust than a change in corporate officers and directors.
A corporate trustee is supposed to be more desirablethan a personal trustee by reason of continuity of ex-istence and ordinarily, larger financial responsibility.One designating a corporation as trustee, however,must be held to do so with knowledge that the trust isto be administered by those persons to whom the stock-holders of that corporation commit the control of itsaffairs. In addition to changes in the personnel of itsmanagement, a corporation may increase or decreaseits capital stock, or otherwise amend its charter. Onedealing with a corporation deals with a creature of thelaw that may proceed as the law permits.
The views expressed find support in decisions of theNew York Court of Appeals and of the Illinois SupremeCourt.
In the matter of Bergdorf, 206 N. Y. 309, 99 N. E.714, 717, the testator made a will appointing the Mor-ton Trust Company his executor. Prior to his deaththe Morton Trust Company was merged into theGuaranty Trust Company under authority of a NewYork statute. Upon the testator's death the GuarantyTrust Company applied for letters testamentary. Re-ferring to the statute and the effect of the merger, thecourt said:
" In reading the sections we do not regard the inten-ion of the testator, but that of the legislature. Theiranguage is broadly and conspicuously comprehensive.
The merger transferred to the Guaranty Company 'alland singular the rights, franchises, and interests o fthe Morton Company ' in and to every species of prop-erty, real, personal, and mixed, and things in actionthereunto belonging/ and empowered the GuarantyCompany to 'hold and enjoy the same and all rights ofproperty, franchises, and interests in the same mannerand to the same extent' as the Morton Company wouldif it 'should have continued to retain the title andtransact the business of the Morton Company. Thislanguage means not only that every right, privilege,interest, or asset of conceivable value or benefit thenheld by the Morton Company (except the right tobe a corporation) shall pass into and be absorbed bythe Guaranty Company, but also that every right,privilege, interest, or asset of conceivable value orbenefit then existing which would inure to the MortonCompany under an unmerged existence should inureto the Guaranty Company. Nothing appertaining tothe Morton Company was to be lost, forfeited, ordestroyed.
" The designation of the Morton Company as anexecutor created a privilege or an interest in the estateof the testator appertaining to that company. Theprivilege or interest was not complete or vested. I twas incomplete, potential, and ambulatory. From it,undisturbed until the testator's death, issued theabsolute interest of an executorship and the power toparticipate in the control and administration of thetestator's estate and receive the legal fees and com-missions. That interest had no source or origin otherthan the will and the designation. The testator'sdeath did but complete and vest that which theretoforeexisted. It existed, although in an incomplete, imper-fect, and dependent condition, from the making of thewill and at the time the merger of the Morton Companywas consummated. Ignorance on the part of theMorton Company of its existence did not affect it.Through it that company would have been an executorand entitled to the letters testamentary if it had'continued to retain the title and transact the businessof such corporation.' The merger transferred it tothe Guaranty Company, and, in effect, substituted thatcompany for the Morton Company. The GuarantyCompany was entitled to hold and enjoy it even aswould the Morton Company under an unmerged ex-istence. By virtue of the statute, effective as a part ofthe will, the Guaranty Company was designated asan executor, and as such is entitled to receive theletters testamentary."
In Chicago Title & Trust Co. v. Zinser, 264 111. 31,105 N. E. 718, 719, Ann. Cas. 1915D, 931, the testatorby her will nominated the Real Estate Title & TrustCompany as executor. Prior to her death that corpora-tion consolidated with the Chicago Title & TrustCompany under authoiity of an Illinois statute. Afterthe testator's death the Chicago Title & Trust Com-pany applied for and obtained letters testamentaryand undertook to make a deed to testator's real estateas the executor nominated in the will was empoweredto do. The right of the consolidated corporation toqualify as executor and to make such a deed was ques-tioned, but was upheld. The court said:
"By the consolidation of the Real Estate Title &Trust Company and the Chicago Title & Trust Com-pany the original corporations ceased to exist, and theappellee, as the consolidated corporation, acquired andsucceeded to all the faculties, property, rights, andfranchises of its component parts and became subjectto all the duties, obligations, and conditions imposedupon them. Robertson v. City of Rockford, 21 111.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
324 FEDERAL RESERVE BULLETIN MAY, 1930
451; Chicago, Rock Island & Pacific Railroad Co. v.Moffitt, 75 111. 524. The material question here iswhether the general rule that a trustee can not delegatehis authority to another is an obstacle to the exerciseof a power by the appellee to act as executor or trusteewhere one of the constituent corporations was namedas such. That general rule rests upon the ground thatthe selection of a trustee implies personal confidencein his discretion and judgment. If a power is given toan executor or trustee which is not ministerial or givenfor the purpose of executing a declared trust which thecourt can enforce but which involves the exercise of dis-cretion and judgment, the power can not be delegatedor transferred to another, either by the trustee or acourt. The rule, however, can not be applied to thecase of a corporation, because the element of trust inthe judgment and discretion of an individual is entirelywanting. A corporation is without personality, andif it is selected as trustee or executor there can be noreliance upon individual discretion or even upon thecontinuance of the same administration. Etta Nelson,in naming the Real Estate Title & Trust Company asexecutor and trustee, knew that its directors, officers,and stockholders might change from time to time, andthat the statute authorized a change of name or placeof business, enlargement, or change of the object forwhich the corporation was formed, an increase or de-crease of capital stock or change in the number of sharesor par value, increase or decrease of the number ofdirectors, and the consolidation of the corporation withany other corporation then existing or that might there-after be organized. She therefore contemplated thatthese changes might occur, and that the Real EstateTitle & Trust Company might be consolidated withsome other corporation, such as the Chicago Title &Trust Company, and that it would thereby cease toexist and become a component part of a new corpora-tion. A consolidation took place and a new corpora-tion was created from the original corporations, with anenlarged capital stock and unimpaired franchises. Theappellee was entitled to execute the trust, and the chan-cellor did not err in overruling the demurrer."
In petition of Worcester County National Bank,supra, the Supreme Judicial Court of Massachusettsheld that so much of section 3 aforesaid as undertookto transfer to a national bank the right of a State bankto the office of executor was unconstitutional. TheMassachusetts court construed section 3 as undertakingto transfer the office held by the State bank to the na-tional bank by force of the consolidation without more.The court said that no one, under the laws of Massachu-setts, was authorized to act as an executor withoutapproval of a probate court.
Upon appeal the Supreme Court of the United States,in an opinion (279 U. S. 347, 49 S. Ct. 368, 73 L. Ed.733, 61 A. L. R. 987) delivered May 13, 1929, differedfrom the Massachusetts court in the construction givento section 3. The Supreme Court, in view of theprovisions of the Massachusetts laws and of the ex-pressed desire of Congress to avoid in section 3 anythingin contravention of the law of the State in which theState bank was located, said, in substance, that sec-tion 3 upon consolidation only undertook to put thenational bank in a position to apply for letters of ad-ministration ; that the consolidation alone was not suffi-cient to effect a substitution of the national bank forthe State bank as executor. The Supreme Court there-fore concluded that section 3 was not unconstitutional.
In Tennessee, since no person nominated as executormay enter upon the administration of the deceased's
estate without letters testamentary (Thompson 7s-Shannon's Code, sec. 3933), and since under section4259 et seq., Thompsons-Shannon's Code, detailedprovisions are made for the qualification and super-vision of a guardian, it is doubtless true that such aconsolidation of a State bank with a national bankwill not of itself and alone justify the national bank inundertaking to execute such trusts as these. Theprimary right to administer such trusts doubtlessfollows the consolidation, but the national bank mustproperly quality as executor or guardian before under-taking to proceed in such capacities.
Where, however, the authority to administer a trustis altogether derived from the instrument appointing aState bank trustee, we are of opinion that a consolida-tion of a State bank with a national bank under sec-tion 3, without more, substitutes the national bank forthe State bank as such trustee with the same rights,title, duties, and powers. This, for the reason as here-tofore set opt, that the maker of the instrument ap-points with imputed knowledge of the law, under whicha corporation is a metamorphic creature subject totransformation.
There has been some discussion of the present statusof the Chattanooga Savings Bank & Trust Company—whether it is in existence, and if so, for what purposes.Thompson's-Shannon's Code, sections 2071, 2074. Weneed not go into this. The consolidation being valid,under the provisions of section 3, the right to execute-this trust has clearly passed from the State bank.
The decree of the chancellor is affirmed.
Authority of Congress for erection of PittsburghBranch Bank Building.
The following is a copy of a joint resolutionof Congress approved April 14, 1930, authoriz-ing the Federal Reserve Bank of Cleveland toerect a building for its Pittsburgh branch, cost-ing not more than $875,000 exclusive of the costof vaults, permanent equipment, furnishingsrand fixtures.
[PUBLIC RESOLUTION—No. 65—71ST CONGRESS
[H. J. Ees. 227]
Joint resolution authorizing the erection of a Federal reserve branch:building in the city of Pittsburgh, Pennsylvania
Resolved by the Senate and House of Representatives ofthe United States of America in Congress assembled, Thatthe Federal Reserve Bank of Cleveland be, and it i&hereby, authorized to contract for and erect a buildingin the city of Pittsburgh, Pennsylvania, for its Pitts-burgh branch, on a site now owned by it, provided thetotal amount expended in the erection of said building,exclusive of the cost of vaults, permanent equipment,furnishings, and fixtures, shall not exceed the sum of$875,000: Provided, however, That the character andtype of building to be erected, the amount actually to*be expended in the construction of said building, andthe amount actually to be expended for the vaults, per-manent equipment, furnishings, and fixtures for saidbuilding shall be subject to the approval of the FederalReserve Board.
Approved, April 14, 1930.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 325
Amendment to law regarding notice required of bankswithdrawing from Federal reserve system.
There is published below the text of an actof Congress approved April 17, 1930, amendingsection 9 of the Federal Reserve act so as toauthorize the Federal Reserve Board in its dis-cretion to permit State member banks of theFederal reserve system to withdraw from mem-bership without waiting six months after filingnotice of intention to withdraw, as heretoforerequired by law.
[PUBLIC—No. 134—71ST CONGRESS]
[H. R. 8877]
An act to amend section 9 of the Federal reserve act, as amended
Be it enacted by the Senate and House of Representa-tives of the United States of America in Congress assem-bled, That the ninth paragraph of section 9 of the Fed-eral Reserve Act (United States Code, title 12, sec. 328),as amended, be further amended by inserting therein,immediately before the proviso now contained therein,the following: "Provided, That the Federal ReserveBoard, in its discretion and subject to such conditionsas it may prescribe, may waive such six months' noticem individual cases and may permit any such Statebank or trust company to withdraw from membershipin a Federal reserve bank prior to the expiration of sixmonths from the date of the written notice of its inten-tion to withdraw."
Approved, April 17, 1930.
Amendment to law regarding rediscount by Federalreserve banks of the paper of one borrower.
There is published below the text of an actof Congress approved April 12, 1930, amendingthe fourth paragraph of section 13 of the Fed-eral reserve act so as to make the limitationsupon the rediscount by Federal reserve banksof the paper of one borrower conform moreclosely to the limitations on loans to one bor-rower by a national bank. Under the new law,a member bank may rediscount with a Federalreserve bank the same amount of paper of asingle borrower as a national bank may ac-quire from a single borrower under the pro-visions of section 5200 of the Revised Statutes.The new law does not in any way change thecharacter or class of paper eligible for redis-count.
[PUBLIC—No. 120—71ST CONGRESS]
[H. R. 9046]
An act to amend the fourth paragraph of section 13 of the FederalReserve Act, as amended
Be it enacted by the Senate and House of Representa-tives of the L/nited States of America in Congress as-sembled, That the fourth paragraph of section 13 of the
Federal Reserve Act, as amended (United States Code,title 12, section 345), be further amended to read asfollows:
"The aggregate of notes, drafts, and bills upon whichany person, copartnership, association, or corporationis liable as maker, acceptor, indorser, drawer, or guar-antor, rediscounted for any member bank, shall at notime exceed the amount for which such person, co-partnership, association, or corporation may lawfullybecome liable to a national banking association underthe terms of section 5200 of the Revised Statutes, asamended: Provided, however, That nothing in thisparagraph shall be construed to change the characteror class of paper now eligible for rediscount by Federalreserve banks."
Approved, April 12, 1930.
Amendment to law facilitating the cancellation ofFederal reserve bank stock of member bankswhich have ceased banking operations.
There is published below the text of an actof Congress approved April 23, 1930, amendingsections 6 and 9 of the Federal reserve act,so as to facilitate the cancellation of Federalreserve bank stock held by a member bankwhich has discontinued its banking operationswithout a receiver or liquidating agent havingbeen appointed. It is provided that if a na-tional bank which has not gone into liquida-tion and for which a receiver has not alreadybeen appointed for other cause shall discontinueits banking operations for a period of 60 days,the Comptroller of the Currency may, if hedeems it advisable, appoint a receiver for suchbank and the Federal reserve bank stock heldby it may thereupon be cancelled. It is alsoprovided that if a State member bank ceasesto exercise banking functions without a re-ceiver or liquidating agent having been ap-pointed therefor the Federal Reserve Boardmay, after hearing, forfeit the membership ofsuch bank in the Federal reserve system.
[PUBLIC—No. 163—71ST CONGRESS]
[H. R. 6604]
An act to amend sections 6 and 9 of the Federal Reserve Act, and forother purposes
Be it enacted by the Senate and House of Representa-tives of the United States of America in Congress assem-bled, That section 6 of the Act of December 23, 1913,known as the Federal Reserve Act (United StatesCode, title 12, section 288), be amended and reenactedto read as follows:
" S E C . 6. If any member bank shall be declaredinsolvent and a receiver appointed therefor, the stockheld by it in said Federal reserve bank shall be canceled,without impairment of its liability, and all cash-paid
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
326 FEDERAL RESERVE BULLETIN M A Y , 1930
subscriptions on said stock, with one-half of 1 percentum per month from the period of last dividend, ifearned, not to exceed the book value thereof, shall befirst applied to all debts of the insolvent member bankto the Federal reserve bank, and the balance, if any,shall be paid to the receiver of the insolvent bank.
"If any national bank wnich has not gone intoliquidation as provided in section 5220 of the RevisedStatutefe (United States Code, title 12, section 181)and for which a receiver has not already been appointedfor other lawful cause, shall discontinue its bankingoperations for a period of sixty days the Comptrollerof the Currency may, if he deems it advisable, appointa receiver for such bank. The stock held by the saidnational bank in the Federal reserve bank of itsdistrict shall thereupon be canceled and said nationalbank shall receive in payment therefor, under regu-lations to be prescribed by the Federal Reserve Board,a sum equal to its cash-paid subscriptions on the sharescanceled and one-half of 1 per centum a month fromthe period of the last dividend, if earned, not to exceedthe book value thereof, less any liability of such na-tional bank to the Federal reserve bank.
"Whenever the capital stock of a Federal reservebank is reduced either on account of a reduction in
capital stock of any member bank or of the liquidationor insolvency of such bank or on account of the appoint-ment of a receiver for a national bank following dis-continuance of its banking operations as provided inthis section, the board of directors shall cause to beexecuted a certificate to the Comptroller of the Cur-rency showing such reduction of capital stock and theamount repaid to such bank."
SEC. 2. That the eighth paragraph of section 9 of theFederal Reserve Act as amended (United States Code,title 12, section 327), be amended and reenacted toread as follows:
"If at any time it shall appear to the Federal Re-serve Board that a member bank has failed to complywith the provisions of this section or the regulations ofthe Federal Reserve Board made pursuant thereto,or has ceased to exercise banking functions without areceiver or liquidating agent having been appointedtherefor, it shall be within the power of the board afterhearing to require such bank to surrender its stock inthe Federal reserve bank and to forfeit all rights andprivileges of membership. The Federal Reserve Boardmay restore membership upon due proof of compliancewith the conditions imposed by this section."
Approved, April 23, 1930.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MAY, 1930 FEDERAL RESERVE BULLETIN 327
DETAILED FEDERAL RESERVE STATISTICS, ETC.FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT
fin thousands of dollarsj
RESOURCES
Gold with Federal reserve agentsGold redemption fund with United States Treasury
Gold held exclusively against Federal reserve notes ._ _ .Gold settlement fund with Federal Reserve BoardGold and gold certificates held by banks __
Total gold reservesReserves other than gold
Total reservesNonreserve cash
Bills discounted 1 _ _ _
Bills bought:Outright2 .Under resale agreement
Total bills bought _United States securities:
Bought outrightUnder resale agreement
Total United States securities _Other reserve bank credit:
Other securitiesForeign loans on goldDue from foreign banksReserve bank float3
Total reserve bank credit outstanding
Federal reserve notes of other reserve banksOther uncollected items not included in float - -- -Bank premisesAll other resources ._
Total resources ._ _ _LIABILITIES
Federal reserve notes:Held by other Federal reserve banksOutside Federal reserve banks__
Total notes in circulationDeposits:
Member bank—reserve accountGovernment _ _ _ _ . .Foreign bankOther deposits
Total deposits. ___
Deferred availabilitv itemsCapital paid inSurplus.. . . . . . . . . . . _.All other liabilities
Total liabilities
Contingent liability on bills purchased for foreign correspondents _FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:Issued to Federal reserve banks by Federal reserve agentsHeld by Federal reserve banks 4
In actual circulation. __ . _. _.Collateral held by agents as security for notes issued to banks:
GoldEligible paper __
Total collateral _
1930
Apr. 30
],642,21441,097
1,683,311634,847754,502
3,072,660178,937
3,251.59762;607
233,452
161,84547, 719
209, 564
527,1242,385
529, 509
9,700
71122,882
1,005,818
20,968562,769
58, 58011, 542
4,973,881
20,9681,486,300
1, 507, 268
2,384,72122,674
5,36521,173
2,433,933
562,769174,209276, 936
18,766
4,973,881
465,458
1,826,987319, 719
1, 507,268
1,642,214430,807
2,073,021
Mar. 31
1,695,08451,852
1,746,936601,913666, 395
3, 015, 244182,428
3,197, 67261,489
310, 228
143, 563134,973
278,536
526, 7398,490
535, 229
8,780
72315,779
1,149, 275
20, 008481, 482
58, 50711, 543
4,979,976
20. 0081, 574; 247
1, 594, 255
2, 366, 93440, 3267,296
20, 423
2,434,979
481,482174, 227276,936
18,097
4,979,976
482,462
1,916,435322,180
1, 594, 255
1, 695,084576, 358
2, 271,442
1929
Apr . 30
1,322,23062,131
1, 384, 361663,105744, 024
2,791,490173,193
2,964,68371,966
934,468
129, 24249, 327
178, 569
140,12123,250
163, 371
7,36614,899
72527,024
1,326,422
13, 333634, 338
58,7397,302
5,076,783
13, 3331, 649, 518
1,662, 851
2, 281, 60527,9538,980
26,132
2, 344, 670
634, 338155,912254, 398
24,614
5,076, 783
345,071
2,057, 244394, 393
1, 662, 851
1, 322,2301,056,854
2, 379, 084
1 Includes bills discounted for intermediate credit banks as follows: Latest month, $1,451,000; month ago, $1,043,000; year ago, $9,388,000; andnotes secured by adjusted service certificates discounted for nomnember banks as follows: Latest month, $38,000; month ago, $38,000; year ago, $133,000.
a Includes bills payable in foreign currencies as follows: Latest month, $1,054,000; month ago, $1,040,000; year ago, $1,036,000.' Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items.4 Excludes " F . R. notes of other F. R. banks," which are consequently included in "actual circulation."
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
328 FEDERAL RESERVE BULLETIN MAY, 1930
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON JANUARY 31, 1930
[In thousands of dollars]
RESOURCES
Gold with Federal reserveagents _
Gold redemption fund withU. S. Treasury
Gold held exclusivelyagainst Federal reservenotes
Gold settlement fund withFederal Reserve Board
Gold and gold certificates heldby banks ^
Total gold reserves.Reserves other than gold.
Total reservesNonreserve cashBills discounted:
Secured by U. S. Govern-ment obligations
Other bills discounted
Total bills discounted...Bills boughtTT. S. Government securities:
Bonds _Treasury notesCertificates and bills
Total i
1,650,164
58,2581
1, 708,422|
650,124:
601,1661
2,959, 712]
196,862,
3,156, 574i66, 647;
208,175186,059;
Boston New Phila- Cleve-York delphia land
189,917; 238,594 120,000. 138,750
l,808| 16,254 4,600 4,313
191, 725!
33, 516:j
27,412:
254,848
265,346
350,339
252, 65322,848
Total U. S. Governmentsecurities _.
Other securities
Total bills and securities.Due from foreign banks _.Federal reserve notes of other
Federal reserve banks _.Other uncollected itemsBank premisesAll other resources
Total resources _.
LIABILITIES
Federal reserve notes in actualcirculation
Deposits:Member bank—reserve ac-
countGovernment.Foreign bankOther deposits
Total depositsDeferred availability items....Capital paid inSurplusAll other liabilities
Total liabilities
Reserve ratio (per cent) _
FEDERAL RESERVE NOTESTATEMENT
Federal reserve notes:Issued to Federal reserve
banks by Federal reserveagents... _
Held by Federal reservebanks i
In actual circulationCollateral held by agents as
security for notes issued tobanks:
GoldEligible paper...
394,234;294,307!
69,584171, 410237,58"
478, 58112, 430
1,179,552|7211
27,6231540,223
58, 267,12, 546
5,042,153
1, 710, 566
2,293, 386|37, 5705,732
19, 022
2, 355, 710511, 800171, 524276,936
15, 617
5,042,153
77.6
2,077,092
366,526
1,710, 566
1,650,164
275, 5015,627
13,28211,474
870, 53355,062
24, 75615,183
3,6766,323
16, 891
26,8901,000
67,82953
22656,2463,580
84
409,146
925, 59515, 007
31,46515, 360
124,600| 143,063
22,664J 80,219
40,382,! 41,792
187,646! 265,07419, 300 13,943
206,946. 279,0173,3001 4, 963
24, 739 37, 53227,752| 20,448
46, 825129,169!
i11,383188, 380113,037
52,4919,099
3,79214,06725,039
212,800: 42,8987,400 1,000
396,194237
10,197148, 76315, 664
1,515, 637
169, 351
146, 8734,072406
151,44054, 75111, 66321, 751
190
409,146
85.!
214, 373
45,022
169, 351
189,91739,860
273, 770
935, 7305,9242,0508,091
951, 795138, 52967, 40580,0014,137
1, 515, 637
75.5
334,941
61,171
273, 770
238, 594159,906
70
34649,8801,762
17"
Rich-mond
71,401
2,140
73,541
21,559
11, 725
106,8259,423
116,2484,972
7,00318,820
57,98022, 376|
4,15112,40013,715
25, 82310, 400
3,4831,5214,898
30,266!1,500
9,902
105,488 112,122
367,969
146,855
131,3072,348532106
134,29342, 95816,48326, 965
41
367,969
73.6
169, 580
22, 725
146, 855
120,00056,963
72
1,49349,1267,0581,060
454,911
175,072
180,9173,588549884
185,93847, 66215, 80729,1411,291
46,12530
2,20441,5553,194
Atlanta Chicago
115,250
2,500
117, 750
13, 371
4,444
135, 56516, 953
152,5183,665
4,53024,199
28, 72916, 538
343,3815,373
8,788
54,05526
1,34217, 6172,6584,026
215,021 235,90:
83, 343
65,3006,670230122
72, 32239, 8276,05512,496
978
454,911
77.3
204,707
29,635
215,021
175,072
138,75079,853
74.7
97,936
14,593
83,343
130, 858
65, 6532,315197166
68, 33118, 5145,421
10, 8571,926
235, 907
76.6
159, 631
28, 773
130, 858
309, 564
11,280
320, 844
80,828
69,070
470, 74217,417
488,1596,865
53, 66525,115
78, 78023,008
25, 68012,26432, 532
70,4761,500
173, 764
3,23662,9698,295697
744,082
294, 400
324,1322,667735577
328, 11158, 73820, 22240, 0942,517
744,082
78.4
350,476
56,076
294,400
71,401 115,250 309,56434,936| 44,850| 101,589
St.Louis
Minne-apolis
79,045 61,157
1, 734J 3,970
80, 779
23,480
7,885
112,14411,308
123,4528,280
8,3177,130
15,44713,065
1,82110, 4816,964
19, 26630
47,80826
2,31324, 5673,811
356
210, 613
87, 793
76, 6642,611
198233
79, 70625, 580
5, 25410, 8771,403
65,127
12,060
5,503
82,6904,348
87,0381,351
1,6493,872
5,5218,202
5,7305,071
16, 781
30, 50416
1,6189,5232,018
485
132,553
62, 324
48, 2721,109
126182
49, 6899,4443,0827,143
871
210,613 132,553
73.7 77.7
104,498
16, 705
68,564
6,240
87,7931 62,324
79,04528,403
61,113,450
KansasCity
80,000
1,741
Dallas
29, 723
1,459
81, 741
43,166
7,248
!
132,1558,444
140, 5992,745
11,66814, 553
26, 221614
2632,800
3,063
29,89822
1,35330, 2443,972
216
209,049
81, 552
84,4671,374
165216
86, 22227, 3464,3049,162
463
209,049
;3.8
94,083
12,531
81,552
80,00026, 531
31,182
16,212
9,135
56, 5295,896
62, 4254,714
SanFran-cisco
216,763
6,459
3.222
37, 703
26,231
287,15611,920
299,0765,158
2, 757 11, 5688,965 8,371
11, 722 19,93910,563; 36,090
9,584--6,000 10, 60010,05li 1,216
25, 635 11,816
47,920 67, 84522 50
5491 2,74620,835i 28,8981,876! 4,379393 379
138,734
39,394
62,1692,412
165
64,78520, 5114,4158,935694
138, 734
408, 531
165,854
171,9022,480379
8,317
183, 07827,94011,41319,514
732
408, 531
59.9
47,473
85.7
230,830
8,079j 64,976
39,394! 165,854
29,723 216,76322,179j 55,869
. 1 Excludes "Federal reserve notes of other Federal reserve banks," which are consequently included in "actual circulation."
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 329
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1930
[In thousands of dollars]
Total
RESOURCES
Gold with Federal reserveagents.
Gold redemption fund withU. S. Treasury _
Boston
Gold held exclusivelyagainst Federal re-serve notes
Gold settlement fund withFederal Reserve Board.
Gold and gold certificates heldby banks
Total gold reserves..Reserves other than gold.
Total reserves.Nonreserve cash
Bills discounted:Secured by U. S. Govern-
ment obligationsOther bills discounted
1,619,405
54,297^
i 179, 91'
NewYork
238, 594
1, 673; 15,675
Phila-del-phia
125,000
3,234
1,673,702;; 181, 590| 254,269 128,234
646,153
644, 884 24, 998 j 395, 556; 26, 337
2, 964, 739186, 287
28,938! 211, 829; 48, 962
235, 526; 861, 65419,120! 59, 252
ICleve-land
135,750
4,247
139,997
94, 236
44, 228
203,533, 278,461
Rich- ! A + 1 Q T I + J Chi- St. I Minne- Kansasmnnii I AUdllldl n n r T n T.niiio ! onnlio n i + -trmond cago I Louis ! apolis City
' SanDallas i Fran-
! Cisco
74,901) 116,170; 309,564! 67,045; 61,230 80,000
1,677 2,438; 11,208| 2,032
76, 578
17,411
7,275
118,608 320,772: 69,077
1,737
13,197) 81,737
13,179; 105,444: 24,341; 14,051 38,974
5,812; 83,1731 8, 748j 5,133; 8,287
101,264] 137,59916,520 12,388 8,365 14,108
3,151,026:; 254,646! 920,906! 220,053! 290,8491 109,629! 151,70760,874;i 5,912; 13,300! 3,266i 3,794i 4,804; 3,440
182, 0051 13, 714170,912;; 13,019
29, 54519,100
23,899 32, 5' 4, 670 2,82321,918! 15,436 15,528 23,527
Total bills d i s c o u n t e d - - ! 352,9171 26,733| 48,645| 45,817j 48,008 20,198 26,350Bills bought . ._ ; 270, 250! 13,404J 48, 680j 11,694| 32,870| 14,139; 19,975
U. S. Government securities: i ,Bonds . _ . . 69,610; 3,953!Treasury notes 219,505 9,980Certificates and bills 190,819 13, 5091
12,366; 4,067! 2, 676J 2,245 818f\(\ AHA 1O AOOi IT OAA* O OO/»i A Orrt
509,389 102,166: 82, 381 [ 128,99817,037 10,867 3,826; 7,625
526, 4266,984
113,033! 86,207| 136,6235, 920; 1, 759; 2, 047
35, 45420, 979
10,368!
8,877
56,43330,993
,109,99093,829
26,217227
Total U. S. Government ! 1 !securities 479,934I; 27,442' 216,185 43,485
Other securities 13,080| 1,000; 11,050 1,000.
4,067! 2,676) 2,245 818 26,21718,028; 17,6641 3,336: 4,852! 19,22721390 10350 4505 3144! 25935
19, 245
418; 9,4011,861 11,980
29,471! 201,763
1,9571 6,452
31,428 208,215
12, 596J 36,192
9,84s! 25,492
53,869; 269,8996,017 11,162
59,886, 281,0614, 275; 5, 373
1, 939 17, 20210,931 7,756
2, 279: 21, 38120, 925! 11, 794| 8, 477
12,870 24, 95816, 367; 40, 932
1,802;12,099J5 3 6 !
5,704:6,56314761'
18,028; 17,6641 3,336: 4,852! 19,227 12,099J 6,56321,390: 10,350 4,505 3,144! 25,935j 5,36o! 4,761
30, 690 10,086 8,814 71,3719, 266| 17,02830!
Total bills and securities. 1,116,181! 68,579;Due from foreign banks 721j 53'Federal reserve notes of other ' j !
Federal reserve bunks 24,721 235:Other uncollected items 606,514 61,8421
Bank premises 58,419 3,580;All other resources 14,861' 55
Total resources ; 5,033,317LIABILITIES i
Federal reserve notes in actual icirculation J 1,655,976; 161,114, 222,352
Deposits: ;
Member bank—reserve ac- icount ' 2,260,130 136,149 894,035
Government ' 42,289 2,923^ 20,781Foreign bank 6,638' 470! 2,378Other deposits 18,385 41 j 8,271
Total deposits— j 2,327,442Deferred availability items i 583,197Capital paid in ' 171,841Surplus 276,936All other liabilities 17,925
Total liabilities. i 5,033,317
Reserve ratio (per cent)FEDERAL RESERVE NOTE STATE-
MENT
Federal reserve notes:Issued to Federal reserve
banks by Federal reserveagents
78.3
324,560237
10, 857
3741,1461, 543'
9,116 2726,150 10,4705, 369 1,119
3, 063j 20, 635| 11,861
101,99670
289
111,5681 44,423 55,139| 158,805; 59,4661 31,10l | 32,9211 49,872 77,75172; 30 26 97 i 26; 16; 22J 22 50
1,594162,432 51,993! 57,277
i=* 89l|1,762
2557,0581,047
394,902 1,452,847 379,684J 473,259
139, 583|60, 645!
11, 606!21, 751
925,465152, 547
67, 51380,001
4,969
394,902! 1,452,847
85.6! 75.9
Held by Federal reservebanks 1
In actual circulationCollateral held by agents as
security for notes issued tobanks:
GoldEligible paper
2,027,350
371,374
1,655,976
201, 335; 302,432
40, 221; 80,080
161,114; 222,352
I1,619,405! j 179,917|
594,683! j 40,060|ii I
238, 59485, 321
I150,718! 182,599
134, 7981,948
61692
137,45447, 36616, 625
185, 2821,722
635799
188,43855,81115,811
26, 965 29,141556 1,459
379, 684
1, 549 96246, 256, 21,875
3, 204;
1, 3032, 6584, 057|
2,080; 1,161; 1,897 1,336; 496: 2,26575,371) 26,445! 11,0361 37,657 23,706 30,6248,295: 3,811, 2,018! 3,972 1,876 4,521
746) 393) 520: 186i l,006: 402
211,198 239,864| 778,804J 210,255! 134, 554J 214,764) 141,139 402,047
79,773; 131,890 300,914j 85,453
63,644! 64,964! 336,2491, 764,
267i103,
1,159!229!102!
65, 778! 66,45445, 623:
6,063'12,496 10, 857
23,1875,451
4,549851936
60, 261 79,028 19,863 162,011
76, 204 50, 761l', 787!
228j621
1,033146161
l,465j 2,0251 2,718
342, 585! 78, 840 52,10172,256! 28,347! 11,09220, 237! 5, 278; 3,09040, 094 10, 877! 7,143
473,259; 211,198' 239,864! 778,804
1,460; 867
210, 255
76.9; 75.1 76.9j 10.3
I !171,969 209,610; 105,793' 160,133
; 1 ,21,251| 27,01l| 26,020! 28,243
150, 718
125,00047,670
344,881
71.5
100,119
43,967! 14, 666
182, 599
135, 75078,634
79,773! 131, 890! 300,914
74,901! 116,17033,169; 45,387
309, 56487,180
85, 453
67,04539, 732
134, 554
85,920 61,590: 170,5341, 536|
190i1,222. 1, 865
190 43856! 7,105
87,744) 63,058! 179,94234,077 23,797) 28,4494,329 4,433! 11,4059,162 8, 935i 19, 514
AOA\ 1 HKQ 7OA424! 1,053 726
214, 764; 141,1391 402, 047
78.2
65,923
5,662
60, 261
61, 23013, 672
85.3
89, 717
10, 689
59.8; 8.0
79,028
80,00029,440
53,83lj 221,607
13,968| 59, 596
39,863| 162,011
29,471, 201,76328,810| 65,608
Excludes "Federal reserve notes of other Federa Ireserve banks," which are consequently included in "actual circulation."
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
330 FEDERAL RESERVE BULLETIN M A Y , 1930
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1930
[In thousands of dollars]
Total
reserveRESOURCES
Gold with Federalagents. __
Gold redemption fund withU. S. Treasury
Boston
1,695,084,; 184,917
51,852'- 1,477
Gold held exclusivelyagainst Federal re-serve notes
Gold settlement fund withFederal Reserve Board
Gold and gold certificates heldby banks _.
1,746,936 i 186, 394il
601,913 | 16,835
New i Phila-York I delphia
|
258, 5941
15,402
135, 000
3,113
Cleve-land
175, 550
4,048
I
Total gold reserves.Reserves other than gold.
666,3951 j 29,584
! 3, 015, 2441; 232,813• 182,428'; 17,605
3,197, 672'' 250,41861,489 j, 9,437
172,272, 9,804137,956!; 9,805
Total reservesNonreserve cashBills discounted: j
Secured by U. S. Govern- ;ment obligations ;
Other bills discounted j
Total bills discounted iBills boughtU. S. Government securities: j
BondsTreasury notes iCertificates and bills !
Total U. S. Government isecurities _J
Other securities
Total bills and securities.! 1,132, 773Due from foreign banks t 723Federal reserve notes of other!
Federal reserve banks 20,008Other uncollected items 497,261Bank premises ; 58,507All other resources \ 11,543
310, 228278, 536
42, 575;195, 043297,611
535, 229;8, 7801
Total resources 4,979,976
LIABILITIES
Federal reserve notes in actualcirculation
Deposits:Member bank—reserve ac-
countGovernmentForeign bankOther deposits
Total depositsDeferred availability itemsCapital paid inSurplusAll other liabilities
Total liabilities..
Reserve ratio (per cent)
FEDERAL RESERVE NOTESTATEMENT
Federal reserve notes:Issued to Federal reserve
banks by Federal re-serve agents. . .
Held by Federal reservebanks *_.
In actual circulationCollateral held by agents as
security for notes issued tobanks:
GoldEligible paper
1, 594,255
2, 366,93440, 326
7, 29620,423
2,434, 979481, 482174, 227276,"""
18,097
4, 979, 976
79.4
1,916,435
322,180
1, 594, 255
19,60916, 064
1,19012, 64626,487
40, 3231,000
76,99653
28155,0363,580
55
395,856
163,400
142,9661,102
49186
144, 64554,15911, 66921,751
232
395,856
81.3
204, 220
40,820
163, 400
1, 695, 084 184, 917576, 358 | 35, 594
I
273,996;
172, 630
401,114|
138,1131
45, 594
847, 740152,140
12, 371
70,20, 322
31,392
215,099
16
2313
1517
474
573589
570733
179, 598
78,027
47,103
304, 72812, 316
317, 0443,907
18, 71312,968
Rich-mond
73,000
1,704
74,704
25, 717
7,544
107,9657,598
115, 5634,137
2,88412,052
90, 790;123,047,
3,889!77, 588
134, 367
215, 8446, 750
33,303-8,347;
978:
17,318:27,828j
31,68l|17,187'
48117,91316, 601
46,124 34,9951,000
436,431238
5,680;132, 56215,664:2, 526 i
18,774 83,86370
29741,744
1,762145
72
96048,847
7,0581,112
14, 9369,687
1,2993, 660
12, 640
Atlanta
133,270
1,677!
Chicago
309,000
10,949
134,947
9,672
5,692
150,31115, 346
165, 6573,388
64314,880
319,949
109,826
89,609
St.Louis
Minne-apolis
76, 345 55,845
1,982 1,951
Kansas jCity |
80,000,
1,7121
78,327
28, 741
57,796
16, 706
Dallas
33,800
1,447
81,712;
45, 282
4, 6111 10,063;
35,247
15, 681
8, 705
519,384 113,956 79,113| 137,057!17,862[ 11,9881 4,817 9,153;
537, 2467,144
59, 6336, 593
24, 84313,118
15, 52314,614
1204,5084,163
8,791
37,263: 38,928 129,22130! 26
37,96120, 666
20, 56416, 28533, 745
70, 594
97
1,619 992; 2,85338,727| 16,090:, 61,617
3, 204 2,658! 8,2956711 3,830 797
1,505,352! 367,954 462,863| 201,214 231,569; 747,270
201,174
1,002, 241IV2,8429,262
1,025, 954122, 92569, 71980,0015,579
1, 505, 352
73.3
252, 503
51, 329
201,174
258, 594211, 332
147,472
133, 8373,162
644214
137, 85738, 35016, 62526,965
685
367, 954
81.2
166,494
19, 022
147,472
135, 00038, 092
181, 598
181,9942,922
6641,7
187, 28847,41415, 94729,1411,475
462, 863
85.9
210, 569
28, 971
181, 598
175, 55048, 224
74, 029
62, 3126,095
279104
68, 79038, 9046,002
12,496
201, 214
80.9
92, 420
18, 391
74, 029
73, 00024, 215
129, 772
63, 5562,123
239145
66, 06317, 3735,454
10,8572,050
231, 569
84.6
162, 052
32, 280
129, 772
133, 27028, 85;
285, 644
334, 8283,156
527
339,40059,18820, 25640,0942,688
747, 270
86.0
323,480
37, 836
285, 644
309, 00058, 394
125,944! 83,930 146,2104,563i 1,429 2,019;
6,467! 435 3,157!8, 292! 2,030 9,367;
14, 7591 2,465 12, 5248,991 11,973 9, 567
645 4,68311, 5111 6,5027,112 7, 209
811,8863,957
19,268! 18,394, 5,92430 I -
43,0481 32,832 28,01526 17 22
1,423: 1,599^ 1,59720,718' 10,793- 28,891;
3,811i 2,018 3,972:292 523, 2631
66, 2264,435
7045, 697
6,4018,379
SanFran-cisco
179,763
6,390
186,153
37, 202
24,090
247,44510,536
257,9815,070
18, 58411,692
30, 27630, 014
8,279: 3666, 977, 18, 249
10,381 18,080
25,637! 36,695
199,825 133,141' 210,9
80, 543
77,7831,197
239339
79, 55822, 0625,300
10,8771,485
199, 825
78.7
94,937
14, 394
80, 543
76, 34522, 674
60, 770
49, 841
' 153178
51, 7819,3793,0767,143
133,141
74.6
65,436
4, 666
60, 770
55, 84513, 861
77,820
87,0173,905
199
91, 32427, 9344,3349,16f
415
210, 989
86.4
88,490
10, 670
77, 820
80, 00021,514
40,417 96,98522 50
541 i 2,16618,737; 23,4991,8761 4,609
879: 450
133,133! 390,810
35, 250
62,4951,394
19949
64,13719, 6234,4258,935
763
133,133
66.6
45, 239
35, 250
33, 80013,977
156, 783
168,0642,052
4587,608
178,18224,17111, 42019, 514
740
390,810
77.0
210, 595
53,812
156, 783
179, 76359, 628
1 Excludes "Federal reserve notes of other Federal reserve banks," which are consequently included in "actual circulation."
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN 331
FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS AND SHORT-TERM SECURITIES
[In thousands of dollars]
Bills discounted:Feb. 5Feb 12Feb. 19Feb. 26Mar. 5Mar 12Mar 19Mar. 26Apr. 2Apr. 9Apr 16Apr. 23Apr. 30
Bills bought in open market:Feb 5Feb. 12Feb 19Feb. 26Mar. 5Mar 12Mar. 19Mar. 26 .Apr 2Apr. 9Apr. 16 . . .Apr 23Apr. 30
Certificates and bills:Feb 5Feb. 12Feb 19Feb 26Mar 5Mar. 12Mar. 19 . _ . _ _Mar. 26Apr. 2Apr. 9Apr 16Apr. 23Apr. 30 - _ _ .
Municipal warrants:Feb 5Feb. 12Feb 19Feb. 26Mar 5Mar 12Mar 19Mar 26Apr. 2 . . .Apr 9Apr. 16 . . . .Apr. 23 _
Total
381, 422381,914376,943342, 781308, 616266, 338205, 634206,829241,123226,164213, 804211,491233,452
295, 791276, 084281, 057299, 306271, 202256, 538185, 017256, 482301, 297267, 002302, 414256,869209, 564
236, 939222, 786210, 313182, 558206,820233, 270293, 424294,876281, 765284, 666289 332284, 679287, 882
30303030303030303030 '15 '15 !
Within15 days
275, 883281, 658284, 604253,437222, 086179, 416128, 042132,180164,494151, 547141, 044133,350149,986
146, 963146,001150,444158,895125, 896135, 843
79, 605172, 731205,190171, 421190, 529147, 584110, 370
130630
15038, 03251, 72829, 0002,160
100
1,640
1,580
1515
16 to 30days
28,29927,42624,84523, 76024, 48823, 52219, 04017,96619, 68218, 72517,88818, 30517, 292
69, 09668, 48562,41370, 62863, 53249, 04236,40128, 46741,45439,17847, 76054, 04144, 260
45,10218, 037
26,66626, 000
3030
31 to 60days
42,47239,96836, 36336,14234,23033, 08230, 20527, 69427, 50227,12524,95827,41729,723
60, 67449, 84059,89950,00752, 69745, 25745, 27240, 63440, 99647,49248, 70935, 08439,864
76, 53161, 516
38,00038,00027, 40032, 40026 00145,19850, 802 i
30303030
61 to 90days
25, 41524,07022,19120, 01218,92720, 53617,08016,46217, 64616, 53416, 69317, 35118,878
18, 65111, 5518,123
19, 58328, 37525, 61822, 66913,97713, 2778,690
12, 37016,15811,913
16,00016, 00016,02026, 00072, 53056,11558, 07257, 03762 38536, 50039, 500
30 !30 '3030
91 days to6 months
8,0717,2146,8116,8006,1166, 6597,3508,0198,3238,703
10, 43512, 01214, 362
407207178193702778
1,070673380221
3,0464,0023,157
95, 34675, 21564,18663, 39155, 47655,484
112,038116, 238114,753113,864112 83894,64691,151
Over 6months
1,2821,5782,1292,6302,7693,1233,9174,5083,4763,5302,7863,0563 211
64 93285,42585 02584,98097,292
100,05841,85682 36381,44081,36582 46882,33578,849
MEMBERSHIP IN PAR COLLECTION SYSTEM
[Number of banks at end of month]
Federal reserve district
Nonmember banks
I
Member banks
1930
I January
United States.
BostonNew YorkPhiladelphia. _.ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis...Kansas City. . .DallasSan Francisco..
8,486
403928761795512425
1,173569682892740606
February] March1_
On par list Not on par list1
1930 1930
January
8,447 | 8,407 11,943
February! March | January March
11,864 ! 11,776 I 3,728
403927761794509421
1,167565678893726603
403929758794508419
1,153560670892722599
270405474990571250
3,4581,645
5662,080
602632
271404471988568249
3,4351,632 |558 ;
2,062 :596 <
516903229485
1, 07619721460
1 Incorporated banks other than mutual savings banks.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
332 FEDERAL RESERVE BULLETIN MAY, 1930
CHANGES IN MEMBERSHIPSTATE BANK MEMBERSHIP NATIONAL BANK MEMBERSHIP
The following list shows the changes affecting Statebank membership during the month ended April 21,1930, on which date 1,100 State institutions were mem-bers of the system:
Date
1930Mar. 22
Apr. 19
Federal reserve district
No. 2—NEW YORKCarteret Trust Co., Carteret, N. J., title changed
to Carteret Bank & Trust Co.Peoples Bank & Trust Co., Passaic, N. J., member.
Absorbed Hobart Trust Co., Passaic, N. J.,nonmember
No. 3—PHILADELPHIAIntegrity Trust Co., Philadelphia, Pa
Admitted to membership—a consolidation ofthe Integrity Trust Co., a member, and theMarket Street Title & Trust Co., nonmem-ber, under new charter.
Mar. 29 Colonial Trust Co., Philadelphia, Pa., member..j Consolidated with and under title of theI Pennsylvania Co. for Insurance on Lives| and.Granting Annuities, Philadelphia, Pa.,| member.. _
! No. 4—CLEVELAND
1 i Lawrence Savings & Trust Co., New Castle, Pa.,I memberj Absorbed Home Trust Co., New Castle, Pa.,j nonmember __
29 | Peoples-Pittsburgh Trust Co., Pittsburgh, Pa.,; member! Absorbed East End Savings & Trust Co.,i nonmember _
Capital
17
Mar. 25
Feb. 19
28
Apr. 21
14
No. 5—RICHMONDApr. 7 i Commercial & Savings Bank, Florence, S. C,
j memberI Absorbed by Peoples State Bank of Southj Carolina, Charleston, S. C, nonmember.
No. 6—ATLANTABank of Candler County, Metter, Ga_ _
Closed.No. 7—CHICAGO
Kalamazoo Trust & Savings Bank, Kalamazoo,Mich., member J
Absorbed the Kalamazoo National Bank & |Trust Co j
And changed its title to Bank of Kalamazoo. iUnited State Bank, Chicago, 111., member j
Merged with Chicago City Bank & Trust Co.,nonmember.
Madison & Kedzie State Bank, Chicago, 111.,member
Succeeded by Madison Kedzie Trust & Sav-ings Bank, nonmember.
No. 8—ST. LOUISAmerican Bank & Trust Co., Paris, Ark._
Closed.Franklin-American Trust Co., St. Louis, Mo.,
memberAnd Phoenix Trust Co., St. Louis, Mo., a
succession to the National City Bank, St.Louis, Mo
Consolidated under a new charter and title ofthe Franklin-American Trust Co. St. Louis,Mo., which was admitted to membership.-_
No. 11—DALLASJan. 14 Fidelity Bank of Commerce, Spearman, Tex.,
title changed to First State Bank.Mar. 24 I First State Bank, Palmer, Tex
I Succeeded by Commercial State Bank, non-i member.| No. 12—SAN FRANCISCO
Mar 31 | Plumas County Bank, Quincy, Califi Succeeded by Plumas County Bank, non-j member.
Apr. 1 Farmers State Bank, Reardan, WashSucceeded by First National Bank.
$600,000
, 500,000
2,987,920
3,999,450
6,500,000
300,000
125,000
5,125,000
250,000
125,000
25,000
600,000
500,000
200,000
2,000,000
50,000
2,000,000
1,000,000
2,600,000
25,000
120,000
50,000
The following list shows reported changes (exceptsuspensions and insolvencies) affecting national bankmembership, concerning which information becameavailable between March 25 and April 21, 1930:
Date
1930
Federal reserve district Capital
No. 1—BOSTON
Apr. 1
Apr. 2 ! Hampden National Bank, Westfield, Mass., titlechanged to Hampden National Bank & Trust iCo. !
15 Engineers' National Bank, Boston, Mass., title |changed to Continental National Bank. j
No. 2—NEW YORK
Mar. 24 i National Exchange Bank and Trust Co., NewYork, N. Y -
i Primary organization.Baldwin National Bank, Baldwin, N . Y., title
changed to Baldwin National Bank & TrustCo.
Mattituck National Bank and Trust Co,, Matti-tuck, N. Y
Conversion of Mattituck Bank, nonmember.First National Bank, Highland Falls, N . Y.,
title changed to First National Bank and TrustCo.
Flemington National Bank, Flemington, N. J.,title changed to Flemington National Bank &Trust Co.
No. 4—CLEVELAND
15
Mar. 29 First National Bank, Dry Ridge, KySucceeded by First State Bank & Trust Co.,
nonmember.Apr. 3 Union National Bank, Butler, Pa
Primary organization.10 First National Bank, Trafford City, Pa., title
i changed to First National Bank of Trafford.18 National Bank, Defiance, Ohio --
Primary organization.
Mar. 5
25
31
Apr. 2
Mar. 25
29
19
No. 5—RICHMOND
First National Bank, Mount Rainier, MdAbsorbed by Prince Georges Bank & Trust
Co., Hyattsville, Md., nonmember.City National Bank, Sumter, S. C
Absorbed by National Bank of South Caro-lina.
National Bank of Baltimore, MdAbsorbed by Union Trust Co., nonmember.
No. 6—ATLANTA
First National Bank, Greenville, AlaBank of Greenville, nonmember. _
Consolidated under charter and title of FirstNational Bank --.
No. 7—CHICAGO
Kalamazoo National Bank & Trust Co., Kalama-zoo, Mich ---
Absorbed by Bank of Kalamazoo, member.Peoples' National Bank, Jackson, MichNational Union Bank and Trust Co
Consolidated under charter of Peoples' Na-tional Bank and under title of Union andPeoples' National Bank
Fishers National Bank, Fishers, IndAbsorbed by Citizens State Bank, Nobles-
ville, Ind., nonmember.First National Bank, Georgetown, 111
Primary organization.City National Bank, Logansport, IndLogansport State Bank, nonmember _.
Consolidated under charter of City NationalBank and title of City & State NationalBank & Trust Co
$1,000,000
100,000
50,000
200,000
150,000
25,000
150,000
1,500,000
250,000
100,000
425,000
500,000
200,000
500,000
700,00025,000
40,000
200,000
150,000
200, 000
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
M A Y , 1930 FEDERAL RESERVE BULLETIN
NATIONAL BANK MEMBERSHIP—Continued
Date
1930Mar. 20
Apr.
Jan.
Mar.
31
9
10
11
22
29
29
Apr. 15
15
Nov. 18 I
Mar. 31
Apr. 1
Mar. 26
31
Apr. 4
Federal reserve district
No. 8—ST. LOUIS
Mount Vernon National Bank & Trust Co.,Mount Vernon, Ind
Absorbed by Old First National Bank.First National Bank, Van Buren, Ark
Succeeded by First and Crawford CountyBank, nonmember.
First National Bank, Stuttgart, Ark ,Absorbed by First State Bank, nonmember.
National Bank of Albion, 111Primary organization.
Farmers National Bank, Dahlgren, 111Primary organization.
First National Bank, Mount Olive, 111.Primary organization.
No. 9—MINNEAPOLIS
Farmers National Bank, Harlowton, MontAbsorbed by Continental National Bank.
First National Bank, Blue Earth, MinnFarmers National Bank, Blue Earth, Minn
Consolidated under charter of First NationalBank and title of First and Farmers Na-tional Bank.
First National Bank, Gettysburg, S. DakPotter County Bank, nonmember
Consolidated under charter of Fiist NationalBank and title of Potter County NationalBank
First National Bank, Carson, N. DakConversion of First State Bank, nonmember.
Union National Bank & Trust Co., Minot, N.Dak ----~.
Succeeded Union National Bank.First National Bank, Aberdeen, S. Dak., title
changed to First National Bank & Trust Co.
No. 10—KANSAS CITY
Mar. 1
18
Apr. 1
First National Bank, Stilwell, Okla_._Succeeded by Security State Bank, nonmem-
ber. ICitizens National Bank, Fort Gibson, Okla
Absorbed by First National Bank. iGrand Island National Bank, Grand Island,
Nebr __!Absorbed by First National Bank. i
Overton National Bank, Overton, Nebr jPrimary organization. !
Farmers National Bank, Pilger, NebrConversion of Farmers State Bank, nonmem-
ber.National Bank of Doniphan, Nebr___ _
Conversion of Bank of Doniphan, nonmem- jber. j
No. 11—DALLASCitizens National Bank, Henderson Tex
Primary organization.City National Bank, Forney, Tex _ _.
Absorbed by Farmers National Bank.Farmers National Bank, Rockwall, Tex.._
Succeeded by First National Bank.First National Bank, Terrell, Tex
Absorbed by American National Bank.i South Texas National Bank, Galveston, Texi Hutchings-Sealy & Co., nonmember._ __; Consolidated under charter of South Texas| National Bank and title of Hutchings-Sealyj National Bank _ _j Red River National Bank of Clarksville, Tex! Succeeded by Red River National Bank in' Clarksville.
Commercial National Bank, Jefferson, Tex _.Primary organization.
No. 12—SAN FRANCISCOFarmers & Merchants National Bank, Blythe,
CalifAbsorbed by First National Bank.
Pacific National Bank, Los Angeles, CalifAbsorbed by Bank of Italy National Trust
& Savings Association, San Francisco, Calif,and Bank of America of California, LosAngeles, Calif., nonmember.
First National Bank, Reardan, WashSucceeded Farmers State Bank.
Capital
$50,000
100,000
100,000
50,000
25,000
50,000
25,000
25, 00050,000
75,00025, 00030,000
75,00025, 000
100,000
25,000
25,000
100,000
25,000
50,000
25,000
100,000
50,000
50,000
200,000
750,0001, 200,000
750,000400,000
25,000
50,000
2, 000,000
50,000
The Comptroller of the Currency presents the follow-ing summary of increases and reductions in the numberand capital of national banks during the period fromFebruary 22 to April 18, 1930, inclusive:
! Num- ' Amount of
New charters issued IRestored to solvencyIncrease of capital approved l
Aggregate of new charters, banks restoredto solvency, and banks increasing capital.
Liquidations. __ IReducing capital2 _ _
Total liquidations and reductions of capital.
Consolidation of national banks under act of Nov. !7, 1918 _ ____;
Consolidation of national banks and State banks iunder act of Feb. 25, 1927 ;
27 i $3,405,0000 : 0
33 3. 480. 000
60 : 6,885,000
68 i 10,075,400850,000
Total consolidations..
73 10,925,400
7 ! 2,625,000
6 45,150,000
13 ; 47,775,000
Aggregate increased capital for period • 6,885,000Reduction of capital owing to liquidations, etc ! j 10,925,000
Net decrease __ • i 4,040,400j i '
* Includes 1 increase in capital of $100,000 incident to a consolidationunder act of Nov. 7, 1918, also 4 increases aggregating $1,250,000 underact of Feb. 25, 1927.
2 Includes 2 reductions in capital aggregating $300,000 incident toconsolidations under act of Nov. 7, 1918.
Fiduciary Powers Granted to National Banks
*& During the month ended April 21, 1930, the FederalReserve Board approved applications of the nationalbanks listed below for permission to exercise one ormore of the fiduciary powers named in section 11 (k)of the Federal reserve act as amended, as follows: (1)Trustee; (2) executor; (3) administrator; (4) registrarof stocks and bonds; (5) guardian of estates; (6) assignee;,(7) receiver; (8) committee of estates of lunatics; (9)in any other fiduciary capacity in which State banks,,trust companies, or other corporations which comeinto competition with national banks are permitted toact under the laws of the State in which the nationalbank is located.
Location
Winchendon, Mass.. >Concord, N. IIHamburg, N. JIrvington, N. YMattituck, N. Y
New York, N. YLakewood, N. JPine Grove, PaWilson, N. CMoultrie, GaAurora, IndKendallville, IndGrand Rapids, Mich.Minot, N. Dak
Wayne, Nebr__Abilene, TexVenture, Calif
Dis-trictNo.
11
222
33567779
101112
Name of bank
First National BankNational State CapitalHardyston National Bank..Irvington National Bank..,Mattituck National Bank :
and Trust Co. iNational Exchange Bank & |Peoples National Bank :
Pine Grove National Bank—;
First National Bank !
Moultrie National Bank jFirst National BankCitizens National Bank :
American National Bank...'•Union National Bank and
Trust Co.First National BankCitizens National Bank [Union National Bank J
Powersgranted
1 to 9.2.i
1 to 8.I t o 9 .1 to 9.
Ito9.
1 to 9.1 to 9.Ito9.Ito9.1 to 9.1 to 9.1 to 9.
1 to 9.1 to 3,5 to 91 to 5.
i Supplementary.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE DISTRICTS
N.DAK
3 \ MINN.
""""MINNEAPOLIS
S.DAK.
, DALLAS®
JiiJ TEXAS
• in ••> BOUNDARIES OF FEDERAL RESERVE DISTRICTS. . — BOUNDARIES OF FEDERAL RESERVE. BRANCH TERRITORIES
® FEDERAL RESERVE BANK CITIES• FEDERAL RESERVE BRANCH CITIESO FEDERAL RESERVE. BANK AGENCY
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Recommended