federal reserve bulletin may 1930 - fraserfinancial, industrial, and commercial statistics: reserve...

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.


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


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


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


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.


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.



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.


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



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.


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.


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.



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.



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.


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.


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.



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



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



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


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



DISCOUNTS OF FEDERAL RESERVE BANKS |


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


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.


MAY, 1930 FEDERAL RESERVE BULLETIN 291

PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued


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



PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued


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.



BUILDING CONTRACTS AWARDED[Value of contracts in thousands of dollars]


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]


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]


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]


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.



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.



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



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.


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.


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.



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



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



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



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



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



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.


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


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.


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



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.



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).



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-



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



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



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.



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.


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..


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.]



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.


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.



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.


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.



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.



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.



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.



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.



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-



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.



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.



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."


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.


[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."


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.


[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



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."




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."



RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON JANUARY 31, 1930


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."



RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1930


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


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



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."



RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1930


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


banks by Federal re-serve agents. . .

Held by Federal reservebanks *_.



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."



FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS AND SHORT-TERM SECURITIES


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]


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.



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


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


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


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.


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


federal reserve bulletin may 1930 - fraserfinancial, industrial, and commercial statistics: reserve...

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