frb_071933

FEDERAL RESERVEBULLETIN

JULY 1933

ISSUED BY THE

FEDERAL RESERVE BOARDAT WASHINGTON

Recent Course of Banking and BusinessAnnual Report of the Netherlands Bank

UNITED STATESGOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

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

FEDERAL RESERVE BOARD

Ex officio members:WILLIAM H. WOODIN,

Secretary of the Treasury, Chairman.J. F. T. O'CONNOR,

Comptroller of the Currency.

EUGENE R. BLACK, Governor.CHARLES S. HAMLIN.ADOLPH C. MILLER.GEORGE R. JAMES.J. J. THOMAS.M. S. SZYMCZAK.

E. M. MCCLELLAND, Assistant to the Governor.CHESTER MORRILL, Secretary.J. C. NOELL, Assistant Secretary and Fiscal Agent.S. R. CARPENTER, Assistant Secretary.WALTER WYATT, General Counsel.GEORGE B. VEST, Assistant Counsel.LEO H. PAULGER, Chief, Division of Examinations.FRANK J. DRINNEN, Federal Reserve Examiner.

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.J. R. VAN FOSSEN, Assistant Chief, Division of Bank

Operations.

District no.District noDistrict no.District noDistrict noDistrict no,District noDistrict noDistrict no,District noDistrict noDistrict no

FEDERAL ADVISORY COUNCIL

1 (BOSTON) THOMAS M. STEBLE.2 (NEW YORK) WALTER E. FREW.3 (PHILADELPHIA) HOWARD A. LOEB.4 (CLEVELAND) H. C. MCELDOWNEY5 (RICHMOND) HOWARD BRUCE.6 (ATLANTA).. JOHN K. OTTLEY.7 (CHICAGO) MELVIN A. TRAYLOR, Vice President.8 (ST. LOUIS) ^ WALTER W. SMITH, President.9 (MINNEAPOLIS) THEODORE WOLD.10 (KANSAS CITY) W. T. KEMPER.11 (DALLAS) - - JOSEPH H. FROST.12 (SAN FRANCISCO) HENRY M. ROBINSON.

WALTER LICHTENSTEIN, Secretary


OFFICERS OF FEDERAL RESERVE BANES

Federal Reserve Bankof

BostonNew York

PhiladelphiaClevelandRichmond...

AtlantaChicago

St. Louis

MinneapolisKansas CityDallas

San Francisco

Chairman

F. H. CurtissJ. H. Case

R. L, Austin.-L. B. Williams-W. W. Hoxton

Oscar NewtonE. M. Stevens

J. S. Wood

J. N. PeytonM. L. McClureC. C. Walsh

Isaac B. Newton

Governor

R. A. YoungG. L. Harrison

G. W. NorrisE. R. Fanchar

G.J. SeayW. S. Johns1

J. B. McDougal.

W. McC. Martin

W. B. GeeryG. H. HamiltonB. A. McKinney

J. U. Calkins.

Deputy governor

W. W. Paddock..W. R. BurgessJ. E. CraneA. W. GilbartE. R. KenzelW. S. LoganL. R. RoundsL. F. SailerW. H. HuttM.J. FlemingC. A. PepleR. H. BroaddusH. F. ConniffC. R. McKayH. P. PrestonJ.H. Dillard.

0. M. AtteberyJ. G. McConkey

Harry YaegerTT T 7iATnAr0. A. Worthington.T "W TTalmR. R. GilbertR. B. ColemanW. A. DayIra Clerk

Cashier

W. Willett.C. H. Coe.R. M. Gidney.iJ. W. Jones.*W. B. Matteson.J. M. Rice.Allan SprouL1L. W. Knoke.1C. A. Mcllhenny.W. G. McCreedy.*H. F. Strater.G. H. Keesee.J. S. Walden, Jr.M. W. Bell.W. S. McLarin, Jr.iW. H. Snyder*W. C Baebman.*R. H. Buss.10. J. Netteretrom.A. T. Sihler.iE. A. Delaney.S. F. Gilmore.'A. H. Haill.>F. N. Hall.G. 0 . Hollocher.0 . C. Phillips.*H. I. Ziemer.F. C. Dunlop.*J. W. Helm.Fred HarrisW. 0 . Ford.*W. M. Hale.

i Assistant deputy governor. ' Controller. * Acting governor.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANES

Federal Reserve Bank of

New York:Buffalo Branch

Cleveland:Cincinnati branchPittsburgh branch

Richmond:Baltimore branchCharlotte branch

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

Chicago:Detroit branch

St. Louis:Louisville branchMemphis branch.Little Rock branch.

Managing director

R. M. O'Hara.C. F. McCombs.J. C. Nevin.Hugh Leach.W. T. Clements.Marcus Walker.Hugh Foster.J. H. Frye.J. B. Fort, Jr.W. R. Cation.J. T. Moore.W. H. Glasgow.A. F. Bailey.

Federal Reserve Bank of

Minneapolis:Helena branch

Kansas City:Omaha branchDenver branchOklahoma City branch..

Dallas:El Paso branch._Houston branchSan Antonio branch

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

1Managing director

R. E. Towle.

L. H. Earhart.J. E. Olson.0. E. Daniel.J. L. Hermann.W. D. Gentry.M. CrumpW. N. Ambrose.R. B. West.W. L. Partner.C. R. Shaw.D. L. Davis.

SUBSCRIPTION PRICE OP BULLETIN

The FEDERAL RESERVE BULLETIN is the Board's medium of communication with memberbanks of the Federal Reserve System and is the only official organ or periodical publication ofthe Board. The BULLETIN will be sent to all member banks without charge. To others thesubscription price, which covers the cost of paper and printing, is $2. Single copies will besold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions,$2.60; single copies, 25 cents.


TABLE OF CONTENTS

PageReview of the monthRecent course of banking and business 413Annual report of the Netherlands Bank 432-435National summary of business conditions 419Financial, industrial, and commercial statistics:

Reserve bank credit, gold stock, money in circulation, etc 420-423Member and nonmember bank credit:

All banks in the United States 425All member banks 424, 452-456Weekly reporting member banks in 90 leading cities 426, 457

Brokers' loans 426Acceptances and commercial paper 427Discount rates and money rates 428, 458Security prices, security issues, United States Government securities 429Production, employment, car loadings, and commodity prices 430, 460-462Merchandise exports and imports 431Department storesIndexes of sales and stocks 431Freight-car loadings, by classes 431

Financial statistics for foreign countries:Gold reserves of central banks and governments 436Gold production 437Gold movements 437-439Government note issues and reserves 440Bank for International Settlements ^ 440Central banks 441-443Commercial banks 444Discount rates of central banks 445Money rates 445Foreign exchange rates 446Price movements:

Security prices 447Wholesale prices 447, 448Retail food prices and cost of living 448

Law department:Purchase of stock in other corporations by member banks 449Right of member bank to continue to hold stock purchased prior to enactment of Banking Act of 1933_ 449

Federal Reserve statistics by districts, etc.:Banking and financial statistics 450-459Industrial and commercial statistics 460-463

IV


FEDERAL RESERVE BULLETINVOL. 19 JULY 1933 No. 7

REVIEW OF THE MONTH

Keturn of currency to the Federal Reservebanks continued during June, notwithstanding

the fact that an increasedvolume of industrial and tradeactivity was reflected in larger

demands for cash for pay-roll purposes and forretail trade. The movement indicates that thereturn of cash previously held in hoards hasbeen in larger volume than the increase in cur-rency requirements arising from the revival ofbusiness activity. Funds arising from the returnof currency and from the purchase of $85,000,-000 of United States Government securitiesby the Reserve banks were used by memberbanks in retiring $110,000,000 of discounts and$10,000,000 of maturing acceptances at theReserve banks, and in increasing their reservebalances by $120,000,000.

Excess reserves of the member banks at theend of June were about $500,000,000, theincrease of about $150,000,000 for the monthreflecting in part the increase in reserve bal-ances held and in part a reduction in requiredreserves resulting from a decline in net demanddeposits. The decline in these deposits oc-curred after the middle of June following theprohibition laid down by the Banking Act of1933, which became effective June 16, on thepayment of interest by member banks ondeposits payable on demand. Funds pre-viously held by depositors in this form wereshifted in part into time deposits, on whichinterest is paid, and in the case of deposits ofcountry banks with their city correspondentswere transferred in part into balances withFederal Reserve banks. This transfer of fundsfrom member banks to the Reserve banks wasreflected in a considerable growth of memberbank reserve balances at interior FederalReserve banks.

At the reporting member banks in 90leading cities total loans and investments in-creased further in June by about $240,000,000.This increase represented a growth of about$300,000,000 in holdings of United StatesGovernment securities at reporting memberbanks outside New York City, offset in part bydecreases in their other investments and intheir loans, as well as in the loans of theNew York City banks. Loans of the reportingbanks secured by stocks and bonds increased by$35,000,000 between May 31 and June 28,while all other loans decreased by $68,000,000.The increase in security loans during the month,as during the preceding 2 months, reflected anincrease in loans to brokers at New York City,offset in part by a decrease, both at New Yorkand elsewhere, in security loans to other bor-rowers. The accompanying table summarizesthe changes during June in the loans and invest-ments of the reporting member banks, withseparate figures for New York City and otherleading cities.

R E P O R T I N G M E M B E R B A N K S

[In millions of dollars]

Loans and investments, totalLoans on securities _All other loansUnited States securities _Other securities

Changes betweenMay 31 and June 28

New-YorkCity

-20+58-85+9- 2

89 othercities

+259-23+17

+297-32

The restoration of banking facilities throughthe reopening of closed banks and the removal

of restrictions on the with-Licensed banks drawal of deposits proceeded

further in June. The numberof member banks licensed by the Secretary ofthe Treasury to open on an unrestricted basis

413


414 FEDERAL RESERVE BULLETIN JULY 1933

increased between May 31 and June 28 by 66,to 5,602, the figures reflecting in part the ad-mission of additional State banks to the FederalReserve System. In the same period the num-ber of member banks not so licensed decreasedfrom 1,163 to 1,104, reflecting both the grantingof additional licenses and the placing of banksin receivership or liquidation. The proportionof total member bank deposits represented bymember banks still unlicensed by the Secretaryof the Treasury on June 28 was approximately5 percent. During the same 4-week periodthere was an increase in the number of non-member banks that were operating on anunrestricted basis by action of the bankingauthorities of the several States, and in theproportion of the total deposits of all non-member banks represented by such unrestrictedbanks. Details relative to licensed and un-licensed banks are given on page 453.

Comprehensive information has recently be-come available for the first time relating to the

number and size of deposit ac-K e o u n t y ^ counts in member banks. This

information, which relates tolicensed banks, was collected as of May 13,1933, by the Comptroller of the Currency fornational banks and by the Federal ReserveBoard for State member banks. It shows thaton this date, when the total number of licensedmember banks was 5,500 and their total de-posits were $23,542,307,000, they had alto-gether 30,556,105 deposit accounts, and that theaverage size of the accounts was $770. Theclassification by size shows that 96.5 percent ofthese accounts were in amounts of $2,500 or less,the average account of this class being $189.While the number of accounts of more than$2,500 was relatively small, constituting only3.5 percent of the total number, the amount offunds held in the larger accounts constituted76.3 percent of total deposits of the banks in-cluded in the tabulation. Accounts in thehighest bracket shown in the table, those ofover $50,000, numbered less than 50,000, andconstituted a small fraction of 1 percent of thetotal number of accounts, but these accountsaveraged $224,000 and in the aggregate held 45percent of total deposits of licensed member

banks. The data are summarized in the fol-lowing table and presented in detail on pages454-456.LICENSED MEMBER BANKS (5,500 BANKS)NUMBER

OF DEPOSIT ACCOUNTS, BY SIZE OF ACCOUNT, MAY13, 1933

Size group

Deposit accounts of$2,500 or less$2,501 to $5,000....$5,001 to $10,000...$10,001 to $50.000..Over $50,000

Total (5,500banks)

Number ofaccounts

29,482,384569,833269,903187,11546,870

30, 556,105

Amount ofdeposits

$5,580,327,0001,912,132,0001,840,791,0003,720,403,000

10,488, 654,000

23, 542, 307,000

Percentagedistribution

Num-ber of

ac-counts

96.51.9.9.6.1

100.0

Totalde-

posits

23.78.17.8

15.844.6

100.0

Aver-age

size ofac-

counts

$1893,3566,820

19,883223, 782

770

In view of the decline in money rates foropen-market loans and in the prevailing rates

charged bank customers, thef^Sf btTowers Federal Reserve Board recently

made a special inquiry amongmember banks to find out to what extent ratescharged borrowers on small loans have changedsince 1928. About 200 member banks in 38cities were requested to report the range ofrates charged on two classes of small customerloans, ranging in amount from $500 to $1,000in May 1928 and in May 1933. The classes ofloans selected were, first, prime customers'commercial paper, such as would be eligiblefor rediscount at the Federal Reserve banks,and, second, loans secured by stock-exchangecollateral. The information brought in bythis inquiry is summarized in a table printedat the end of this review.

On small commercial loans, 147 memberbanks of the 175 reporting showed no change inrates since 1928, 20 banks showed a slightdecrease in rates, and 8 banks showed a slightincrease. A simple average of all the ratesreported by the 175 banks shows a decline forthe period from 6.42 percent in May 1928 to6.38 percent in May 1933. On small loanssecured by stock-exchange collateral 150 banksof the 182 banks reporting showed no change,22 banks showed a slight decrease in rates,and 10 a slight increase. A simple averageof all the rates reported under this classifica-tion showed a decline from 6.45 percent in May


JULY 1933 FEDEKAL RESERVE BULLETIN 415

1928 to 6.40 percent in May 1933. During thesame period the Federal Eeserve Board's con-tinuing average of rates charged on customers'loans in leading cities, which is in general basedon larger commercial loans and on larger loans onstock-exchange collateral, declined from 5.16 per-cent in May 1928 to 4.92 percent in May 1933.

The physical volume of industrial produc-tion, including both manufactures and minerals,

increased rapidly during AprilRecent course of J A/T J J- X xi~production a n ( * ^ aJj a n c ^ according to the

Board's seasonally adjusted in-dex was at 77 percent of the 1923-25 averagein May as compared with 60 percent in March.Preliminary reports indicate a further sub-stantial increase in June. Activity in the con-struction industry, which is not representeddirectly in the index of industrial production,is currently at a level considerably lower,relative to the 1923-25 average, than thevolume of industrial production. The valueof contract awards showed a nonseasonal in-crease in May and June but the total for thesecond quarter was smaller than a year ago.

The course of manufacturing output fromJanuary 1919 to May 1933 is shown on theaccompanying chart, with separate lines for thetotal, for durable manufacturesincluding iron

VOLUME OF MANUFACTURING PRODUCTIONAGGREGATES IN f R. BOARD INDEX ADJUSTED FOR SEASONAL VARIATION

$ \

\

\

Ar

/''

//

/

/ \A

f\ JV

II Ma lUfdCt ures /

Y* J " I 1 "MV Steel, Autos, Lumber, etc.

\

M

\\

\\ ^

/V

i. 1/

1919 1920 1921 1922 1923 192*t 1925 1926 1927 1928 1929 1930 1931 1932 1933

Weighted aggregates in millions. "Steel, autos, lumber, etc.," includesalso vessels built, locomotives, nonferrous metals, cement, polishedplate glass, and coke. "Other manufactures" includes textiles,leather products, foods, tobacco products, paper and printing, petro-leum refining, and automobile tires and tubes.

and steel, nonferrous metals, coke, lumber,automobiles, locomotives, and shipsand fornondurable manufactures mainly textiles,leather, food, tobacco, rubber, and paper prod-ucts. The underlying data are adjusted for

the usual seasonal variations. The chartshows that the increase in total volume ofmanufacturing output from March to Maywas about one half in durable goods and onehalf in nondurable goods; this is in contrastto developments in the autumn of 1932 whenthe output of textiles and other nondurableproducts increased considerably, while outputof durable products showed little change. Thechart also brings out the fact that output ofnondurable manufactures in May reached alevel approximately equal to the 1923-25average, while output of durable manufactures,which had previously declined to extremelylow levels, amounted in May to about 50 per-cent of the 1923-25 average.

Analysis of the recent increase in output ofnondurable manufactures shows that the ad-vance in this group was general. At cottonmills activity advanced sharply to the highestrate since the autumn of 1929, and in thewoolen industry production reached a levelhigher than in most other months since thattime. Output of shoes increased sharply inApril and May and was larger in May than inthe corresponding month of any other recentyear. The quantity of cigarettes manufac-tured in May was much larger than thatreported for any previous month.

Among the durable goods industries the mostrapid advance was in the steel industry, whereactivity increased from 16 percent of capacityin March to 34 percent in May and 46 percentin June. This advance was largely in responseto demands from miscellaneous sources and,to a lesser extent, to increased orders from theautomobile industry. Demand for steel fromthe construction and railroad industries con-tinued at low levels. Lumber production inMay, although larger than in other recentmonths, was less than one third of the 1923-25average. The limited demand for structuralsteel, lumber, and other building materials re-flected current conditions in the construction in-dustry. Increased demand for steel from theautomobile industry reflected growth in activityin that industry during April, May, and June.Production of cars in these 3 months totaledabout 650,000, as compared with about 500,000



in the corresponding period of last year andabout 1,800,000 in the corresponding monthsof 1929.

Prices of commodities at wholesale have beenadvancing for 4 successive months, and in June

the index of wholesale corn-Commodity

modity prices computed by theBureau of Labor Statistics

reached 65.0 percent of its 1926 average,as compared with 59.8 percent in February.The extent to which commodities in the dif-

WHOLESALE COMMODITY PRICES

[1926=100]

Farm productsHides and leather products.Textile productsFoods _ _All commoditiesBuilding materialsChemicals and drugsMiscellaneousMetals and metal products.House-furnishing goodsFuel and lighting

Febru-ary, 1933

40.968.051.253.759.869.871.359.277.472.363.6

June,1933

53.282.461.561.265.074.773.760.879.373.461.5

Percent-age

change

+30.1+21.2+20.1+14.0+8.7+7.0+3.4+2.7+2.5+1.5- 3 . 3

ferent major groups which compose the indexcontributed to this advance is indicated in thetable, which shows that prices of farm products,hides and leather products, textiles, and foodsrose much more rapidly than the index as awhole. Prices of commodities in most of theother groups entering into the index showed amuch smaller advance, and there was a smalldecline in prices of products in the fuel andlighting group.

In general, the widest price advances haveoccurred in raw materials. The demand forthese primary products, which are generallyquoted in organized markets and many ofwhich enter actively into international trade,usually responds quickly to changes in marketconditions. Since February prices of thesecommodities have reflected increased demands,including forward buying, accompanying sharpincreases in industrial output and, in the caseof some agricultural commodities, prospects ofreduced supplies owing to weather conditionsand proposed reductions in acreage. They

have also been influenced by increased tradingin the organized commodity markets in expec-tation of further price advances, and, particu-larly in the case of international raw materials,by the change in the value of the dollar in theforeign exchange market. In cases where theprice of raw materials constitutes an importantfactor in the cost of finished products, advanc-ing prices for these materials have been gen-erally accompanied by advancing prices forsuch products.

WHOLESALE PRICE MOVEMENTSFOUR MAJOR GROUPS

PER CENT 1929 -100

u

Hid

SEL

t 4

V \

RdMats

_ _ |

L_

1ECTED FOO

\ Products\

wHrials j *

V.1

LEATHER

i

1Leather ^ Pi

A

esandiskins i

\ / '\j

DS

/

oducts

A= ^

V

i\

1TEXTILE

\

\

Ra>Mater

S

ManufacturedProducts

\ ^

V

\(\IRON AND STEEL

fw\

J

; j/' .1Manufactured

St sel Scr

N

V -

ap

Ij

1929 1930 1931 1932 1933 1929 1930 1931 1932 1933Index numbers computed from selected data; for details see BULLETIN

for December 1932, page 734.

Relative changes in the prices of finishedproducts and the raw materials from whichthey are wholly or mainly produced are illus-trated on the chart for four different groups ofcommodities. The groups are selected foods,textiles, leather, and iron and steel products.In each case the comparison is made in terms ofindex numbers with the average for 1929 as 100.The chart shows that during the past 4years the price of raw materials in each of thesegroups declined to a much greater extent thanthe price of the finished product. Duringrecent months, however, when the direction ofprice movements has been reversed, raw mate-


JULY 1933 FEDERAL RESERVE BULLETIN 417

rial quotations have risen in general much morerapidly than prices of finished products, withthe result that for the groups shown on thechart the spread between the two types ofquotations has been considerably reduced.In some particular cases, however, where de-mand has been especially heavy, analysis of theunderlying data shows that prices of finishedgoods have risen at about the same rate as theprice of raw materials.

Central gold reserves of the principal Euro-pean countries taken as a whole declined by

about $48,000,000 (at par) int h e l a t t e r

P a r t o f M a y a n d t h eearly part of June, reflecting

losses of $34,000,000 by Switzerland, $35,000,-G O L D R E S E R V E S OF SELECTED C E N T R A L B A N K S

[In millions of dollars at par]

Central bank of

EnglandFrance . . . _GermanyItalyBelgium.NetherlandsSwitzerland _ _ . . .

Date,1933

June 28June 23

. . .do.June 20June 22June 19June 23

Gold re-serves

*922p 3,185

53*>355

372326374

Change from

Monthbefore

+15+11- 3 5+6

11-34

Yearbefore

+259-34

-143+57+15-67

-129

p Preliminary

000 by Germany, and $11,000,000 by Nether-lands, and gains of $15,000,000 by England,$11,000,000 by France, and $6,000,000 byItaly. The gold stock of Belgium showed nochange for the period.

There was an increase of 3,027,000 ($14,-Bank of Eng- 700,000 at par) in the gold stockl a n d

of the Bank of England duringthe 4 weeks ending June 28, bringing the bank'sholdings to 189,359,000 ($921,500,000) ascompared with 136,143,000 ($662,600,000) ayear ago, and 135,574,000 ($659,800,000) onSeptember 16, 1931, prior to England's suspen-sion of the gold standard. Acquisition of goldby the Bank of England has been largely sincethe close of last January during a period whenthe pound sterling has shown little fluctuationin relation to gold currencies. Dollar quota-

32133 2

tions on sterling, however, which average'dabout $3.42 in February and March, increased

B A N K O F E N G L A N D

[In thousands of pounds sterling; figures preliminary]

Gold -DiscountsSecuritiesBankers' deposits-Public depositsOther depositsNotes in circulation

June 28,1933

189,35916,64287,239

105,12014,06142,164

375,124

Change from

May 31,

+3,027+5,392+3,784

+27,647-19,186+2,628+1,061

June 29,1932

+53,216+1,753-6,282

+18,555-3,921+7,428

+12,041

to $3.58 in April, $3.93 in May, and to $4.14in June. On July 11 sterling was quoted at$4.74.

During the past month, funds disbursed bythe British Treasury in paying interest on thepublic debt were transferred to bankers' bal-ances, which were further increased throughthe purchase of securities by the Bank of Eng-land and through the increase in market bor-rowing at the bank. A building up of bankers'balances usually occurs toward the close ofJune when the London clearing banks areaccumulating liquid reserves in order to showa strong cash position in their midyear state-ments.

At the Bank of France in the four weeksending June 23 gold reserves increased by

293,000,000 francs ($11,500,-Bank of France 000 at par). Bank of France

notes in circulation againdeclined during the past month, the funds thus

B A N K O F

[In millions of francs;

GoldForeign exchangeDomestic discounts and advances,.Government depositsOther depositsNotes in circulation

F R A N C E

figures preliminary]

June 23,1933

81,2443,9416,0882,510

18,97982,590

Change from

May 26,1933

+293+54-36

+245+586-677

June 24,1932

-856-2,391

-556-371

-5,642+1,923

made available to the market being added to"other" deposits, in which reserve balances ofthe French commercial banks are included.



From the end of March to June 23 the notecirculation declined by about 3,500,000,000francs. This decrease during the second quar-ter of the year contrasts with the increase ofover 1,000,000,000 francs during the first quar-ter. At the end of March, Bank of Francenotes in circulation amounted to 86,096,000,000francs as compared with 85,028,000,000 francsat the close of 1932 when the holiday demandfor currency was at its height.

Total gold and foreign-exchange reserves ofthe Reichsbank were reduced by 155,000,000o . . , . reichsmarks ($36,900,000 atReichsbank . v 7

par) m the month endedJune 23. This loss of reserves was largelyin connection with the repayment in full onJuly 1 of the credit granted to the Gold Dis-count Bank by a syndicate of American pri-vate banks in April 1924. The credit, originallyfor $5,000,000 but subsequently increased to

REICHSBANK

[In millions of reichsmarks]

GoldForeign-exchange reservesDiscounts and advancesDeposits -- - - - -Notes in circulation

June 23,1933

22381

3,047428

3,200

Change from

May 23,1933

149- 6

+114+57- 4 6

June 23,1932

-600- 5 7+75+28

-517

$50,000,000, had been renewed in July 1932 for1 year in the reduced amount of $45,000,000.During the month there was an increase indiscounts and advances and in deposits atthe Reichsbank and a decrease in notes incirculation.

The Reichsbank has announced a partialmoratorium, to go into effect July 1, on thepayment abroad of both principal and interestof a large part of Germany's foreign indebted-ness, two major exceptions being creditscoming under the standstill agreements andcredits used in the current financing of Ger-many's foreign trade. The moratorium isfor the transfer of payments only; Germandebtors will be required to make paymentsin reichsmarks into a conversion fund ad-

ministered by the Reichsbank and guaranteedby the German Government.

Changes in Foreign Central Bank Discount RatesThe following changes in discount rates

between June 2 and July 15, 1933, have beenreported by central banks in foreign countries:

Bank of Finland, June 3, from 6 to 5 ^ percent.Bank of Greece, June 6, from 9 to 7% percent.Bank of Java, July 1, from 4J4 to 5 percent.Netherlands Bank, June 29, from Z% to 4% percent;

July 15, from 4% to 5 percent.Bank of Japan, July 3, from 4.38 to 3.65 percent.

INTEREST RATES CHARGED ON SMALL LOANS($500 TO $1,000)

City

Boston

New York City-PhiladelphiaCleveland-Cincinnati.Pittsburgh.Richmond-BaltimoreCharlotte-AtlantaBirmingham..Jacksonville-NashvilleNew Orleans..Chicago-Detroit..St. LouisLittle Rock.LouisvilleMemphis- __Minneapolis .Helena..Kansas CityDenverOklahoma City.Omaha

DallasEl PasoHoustonSan Antonio..Fort Worth Waco

San Francisco.Los AngelesPortlandSalt Lake City-SeattleSpokane

Rates charged by 175member banks onsmall prime commer-cial loans ($500 to$1,000), such as wouldbe eligible for redis-count at Federal Re-serve banks

Num-ber ofbanks

12

Percent5 - 6

5 - 6

M a y1928

5y2- 76 - 8

- 76

5 - 86 -106 -106 - 8

6 -10

5 - 75 - 86 - 87 - 86 - 8

May1933

Percent5 - 63 - 65 - 6

65 - 6

66

4^ -66

5 - 76

3 - 66

5 - 66 - 7

66

86 - 86 - 86 -10

6 -106 -107 -105 - 75 - 86 - 87 - 86 - 8

Rates charged by 182member banks onsmall loans ($500 to$1,000) secured byprime stock exchangecollateral

Num-ber ofbanks

13

Percent5 - 64 ^ - 65 - 6

5 - i

6 - 8

May1928

534- 6

6 -106 -10

5 - !

6 -106 -106 -105 - 75 - 8

M a y1933

Percent5 - 6

4 - 65 - 6

65 - 6

5 - i6 - I6 - {4 - I

5 - 66 - 8

66

6 -106 - 8

6 -106 -106 -105 - 85 - 8

6 - 8



NATIONAL SUMMARY OF BUSINESS CONDITIONS[Compiled June 22 and released for publication June 24]

Industrial activity increased rapidly in Mayand the early part of June, and there was anadvance in the general level of commodityprices. Prices of raw materials traded in onorganized exchanges showed wide fluctuationsand a general rapid upward movement, whileprices of other commodities as a group showedrelatively little increase.

Production and employment.Volume of in-dustrial production, as measured by the Board'sseasonally adjusted index, increased from 67percent of the 1923-25 average in April to76 percent in May, as compared with 60 percentin March 1933. Operations at steel mills con-tinued to increase in May and the early part ofJune, contrary to seasonal tendency, and in theweek ending June 24 activity is reported atabout 50 percent of capacity. Output of theautomobile industry was larger in May than inApril and, according to trade reports, has in-creased further in June, although a decline isusual at this season. Lumber output in Mayshowed a considerable increase from previouslow levels. Activity at textile mills increasedsharply to a higher level for the season than inany other month since November 1929; andoutput of shoe factories in May was larger thanin May of any previous year.

Employment in manufacturing industries in-creased considerably between the middle ofApril and the middle of May, and the Board'sindex, which is adjusted to allow for seasonalvariations, advanced from 58 percent of the1923-25 average to 61 percent. Factory payrolls increased by a larger percentage to about42 percent of the 1923-25 average.

Value of construction contracts awardedduring May and the first half of June, asreported by the F. W. Dodge Corporation,showed a nonseasonal increase from the ex-treme low levels prevailing earlier in the year.

Distribution.Freight traffic increased fromApril to May by more than the seasonalamount, reflecting chiefly larger shipments ofmiscellaneous freight and merchandise. De-partment-store sales, which had increased sub-stantially from March to April, showed littlechange in May.

Wholesale prices.Wholesale commodityprices, as measured by the weekly index of theBureau of Labor Statistics, advanced from60.3 percent of the 1926 average in the weekending April 15 to 64.5 percent in the week

ending June 17. This increase reflected a rapidrise in the prices of commodities traded in onorganized exchanges, including wheat, cotton,wool, hides, lard, sugar, silk, rubber, and non-ferrous metals, and also in the prices of flour,textiles, and leather; while prices of petroleumwere reduced and most other prices showedrelatively little change.

Foreign exchange.The value of the dollarin the exchange market declined by 18 percentbetween the middle of April and June 21. Onthe latter date the noon buying rate on cabletransfers for the French franc was 4.81 cents,as compared with a gold par of 3.92 cents, andthe English pound was quoted at $4.16, ascompared with a rate of $3.41 on April 12.

Bank credit.A return flow of $156,000,000of currency from circulation and purchaseof $118,000,000 of United States Governmentsecurities by the Reserve banks placed a con-siderable volume of reserve funds at the dis-posal of member banks during the five weeksending June 21. These funds were used in partto reduce further the member banks' indebted-ness to the Reserve banks and the Reservebanks7 holdings of acceptances, and in partwere added to the member banks' reserveaccounts.

Loans and investments of member banks in90 leading cities increased by $175,000,000 inthe four weeks ending June 14, representingchiefly a growth of security loans and otherloans at New York City banks. Loans tobrokers and dealers in securities made by NewYork City banks increased by $160,000,000during the period, while security loans to othercustomers declined. Net demand depositsat the reporting banks increased by over$500,000,000, reflecting in part a furthergrowth of bankers' balances, principally inNew York City.

Money rates in the open markets continuedto decline during the period and in the middleof June were only slightly above the lowestlevels of recent years.

On May 26 the discount rate of the FederalReserve Bank of New York was reduced from3 to 2K percent and in the following three weeksrates were lowered from 3K to 3 percent at theFederal Reserve Banks of Chicago, Boston,San Francisco, Philadelphia, St. Louis, andCleveland. At the other Federal Reservebanks a rate of 3K percent prevails.


420 FEDERAL RESERVE BULLETIN JOLT 1933

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

7000

6000

Weekly Basis: Wednesday Series

2000

1000

MILLIONS Of DOLLARS

7000

6000

MEMBER BANKRESERVE BALANCES

2000

1000

1928 1929 1930 1931 1932Based on Wednesday figures; latest figures are for June 30

1933



FEDERAL RESERVE BANK CREDITRESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES


Month or week

1932February.MarchAprilMayJune -Ju ly . .AugustSeptemberOctoberNovemberDecember

1933January __.FebruaryMarchAprilMayJune

Week ending (Saturday)1933February 4 .

February 11February 18February 25March 4March 11March 18March 25April 1April 8April 15April 22April 29May 6May 13__May20-_.May27___

June 3June 10 ._.June 17June 24

Averages of daily figures

Reserve bank credit outstanding

Bills dis-counted

848714605486495523451387328313282

255307994425339250

256

8471,4211,184

524432433420411

404343331314

305284255228

Billsbought

151105524150603734343434

102379230

313145181

361417400356

316288244208180

1481158146

201110

UnitedGovern-ment se-curities

74S809

1,0141,4131,6971,8181,8501,8481,8511,8511,854

1,8061,8041,8751,8371,8461,933

1,7631,7751,8091,833

1,8481,8761,9071,882

1,8461,8381,8371,8371,837

1,8371,8371,8431,851

1,8801,9071,9251,950

Otherreservebankcredit

Total

1,7851.6521,6941,9602,2622,4222,3532,2822,2312,2112,192

2,1102,2243,2332,5112,2862,208

2,0742,0782,1552,357

3,0563,6613,4762,931

2,5702,5352,4922,444

2,4072,3112,2722,224

2,2132,2162,2072,198

Factors of decrease

Mone-tary gold

stock

4,3844,3724,3814,2733,9563,9414,0314,1404,2264,2924,429

4,5474,4914,2604,3014,3134,317

4,54S4,5304,5054,450

4,3334,2444,2514,263

4,2704,2834,3014,3124,310

4,3114,3124,3134,314

4,3154,3164,3174,318

Treasurycurrencyadjusted

1,7871,7921,7891,7881,787, 780,796,826,886,917,915

901,891,897,915,930,943

,892,871,892

,922,922,920,871

,893,911,929,927

,873,910,933,972

1,9651,9801,9471,892

Factors of increase

Moneyin circu-

lation

5,6275,5315,4525,4565,5305,7515,7205,6855,6435,6425,699

5,6315,892

6,1375,8765,742

5,6645,7175,8506,032

6,8057,5327,2606,643

6,3766,2716,1726,0856,015

5,9725,910

5,815

5,8145,7845,7425,711

Memberbank

reservebalances

1,9071,8991,9962,1382,0622,0032,0732,1812,3072,3782,435

2,5162,2911,9142,0862,1252,211

2,4262,3692,2562,235

2,0651,8031,8981,952

1,9732,0022,0832,1362,130

2,0802,0902,1262,177

2,1652,1992,2152,193

Non-memberdeposits,

etc.

79134156173164

688290

96143140129

141138144157181

184178175164

161178164155

Unex-pendedcapitalfunds

349349353350348343347347355360359

351344344348355351

350346343342

345849349341

335348355355

355355354354

353351350349

End of month series

1933

Jan.31

27431

1,7639

2,0774,5531,872

5,6452,446

64346

Feb.28

582336

1,86610

2,7944,3791,939

6,5462,141

80346

Mar.31

426305

1,8383

2,5724,2821,887

6,3201,949

143329

Apr.30

435171

1,83716

2,4594,3121,907

6,0032,132

188355

May31

30220

1,8907

2,2184,3151,954

5,8122,167

155353

June30

Wednesday series

1933

May24

May31

June June14

June21

June28

Bills discountedBills boughtUnited States Government se-

curitiesOther reserve bank creditTotal reserve bank creditMonetary gold stockTreasury currency adjustedMoney in circulationMember bank reserve balancesNonmember deposits, etcUnexpended capital funds

164

10

2,220P4, 3171,988

P5, 7212,292

166345

Bills discountedBills boughtUnited States Government se-

curities-Other reserve bank creditTotal reserve bank creditMonetary gold stockTreasury currency adjustedMoney in circulationMember bank reserve balances..Unexpended capital funds, non-

member bank deposits, etc

312

1,862

2,2194,3141,969

5,7952,194

514

30220

2,2184,3151,954

5,8122,167

508

27711

1,91215

2,2144,316l r "

5,7672,204

548

25410

1,93215

2,2124,3181,980

5,7232,281

504

222

1,955

2,1944,317

2,205

500

191

1,975

2,1824,3181,979

5,6752,286

517

i Less than $500,000. v Preliminary. Back figures.See Annual Report for 1931 (tables 1-5).



RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERALRESERVE NOTE STATEMENT AND FEDERAL RESERVE BANK NOTE STATEMENT

[In thousands of dollars]

June 30,1933RESOURCES

Gold with Federal Reserve agents _Gold 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 reservesOther cash i _

Total gold reserves and other cashRedemption fundFederal Reserve bank notes.Bills discounted:

For member banksFor intermediate credit banksFor nonmember banks, etc.

Total bills discountedBills bought:

Payable in dollars:Bought outrightUnder resale agreement

Payable in foreign currencies _Total bills bought

United States Government securities:Bought outrightUnder resale agreement .__

Total United States Government securitiesOther reserve bank credit:

Federal intermediate credit bank debentures _Municipal warrantsDue from foreign banks _Reserve bank float (uncollected items in excess of deferred availability items) _

Total Reserve bank credit outstanding _Federal Reserve notes of other Reserve banks _ _Uncollected items not included in float _Bank premises --- _All other resources

Total resources _

LIABILITIESFederal Reserve notes:

Held by other Federal Reserve banks _Outside Federal Reserve banks

Total notes in circulationFederal Reserve bank notes in actual circulationDeposits:

Member bankreserve accountGovernmentForeign bank _Special deposits:

Member bankNonmember bank

Other depositsTotal deposits

Deferred availability items _.Capital paid inSurplusAll other liabilities

Total liabilitiesContingent liability on bills purchased for foreign correspondents

FEDEKAL RESERVE NOTE STATEMENTFederal Reserve notes:

Notes issued to Federal Reserve banks by Federal Reserve agents..Collateral held by agents as security for notes issued to bank:

GoldEligible paperUnited States Government securities _

Total collateral

FEDERAL RESERVE BANF NOTE STATEMENT

INotes issued to Federal Reserve banks (outstanding).Collateral pledged against outstanding notes:

Discounted and purchased billsUnited States Government securities

Total collateral

May 31, 1933

2,784,20144,068

504,551210,366

3, 543,186270, 239

3,813,4257,392

162,707

977163, 684

1,08939,8377,089

48,015

1,997, 652

1,997,652

2,6773,7293,830

2, 219,58715, 549

369,84154,31350,645

6, 530, 752

. 15,5493,078,4053,093,954

123, 394

2,292,36035,48115, 523

75,88918,81456,193

2,494,260369,841146,763278, 59923,941

6,530,75235,854

3,336,867

2, 784, 201134,459442, 700

3,361, 360

138,744

1,981160,974162,955

June 30,1932

2,813,63944,353

2,857,992409, 834252,072

3, 519,898286, 770

3,806,6686,242

300,843

301,974

12,881

19,862

1, 889, 278300

1, 889, 578

4,8233,815

2 2,0352, 218, 017

15,143318,08254,25548,020

6, 466, 427

15,1433,187,9593,203,102

96,280

2,166,72172,3287,848

18,05945,180

2,393,773318,082150,271278,59926,320

6,466,42735,731

3,436,872

2,813,639190,397480,900

3,484,936

123,134

26,039136,274162, 313

1,956,26759, 784

2,016,051223,421338,337

2, 577,809266, 301

2,844,110

439,307528155

439, 990

21,67714,15530, 76266, 594

1, 761,66922,052

1,783,721

5,2143,65510,720

2, 309,89413, 325

343,84558, 08645,462

5, 614, 722

13,3252,781,6382, 794,963

1,982,1273,7569,002

33,3782,028,263343,845154,812259,42133,418

5,614,72297,729

3,028,396

1,956, 267452,596634,500

3,043,363

i " Other cash" does not include Federal Reserve notes or a bank's own Federal Reserve bank notes. Excess of deferred availability items over uncollected items.



ANALYSIS OF CHANGES IN MONETARY GOLDSTOCK


Month

1932February..MarchAprilMay -JuneJulyAugustSeptember.OctoberNovember-December..

Total (12 mos.)-1933January

February.MarchAprilMayJune?

Total (6 mos.)

Goldstockat end

ofmonth

4,3544,3904,3674,1523,9193,9774,0884,1934,2644,3404,513

4,5534,3804,2824,3124,3154,317

Analysis of changes

Increasein stockduringmonth

36.0-23 .1

-214.1-233.9

58-0111.7104.870.875.6

173.5

52.9

-195.8

Net goldimport

Net re-from ear-

mark i

-90. e-24.7-30 .2

-195.5-206.0

- 3 . 46.1

27.920.621.7

100.9-446.2

89.7

26.458.34.0

-22 .1-28 .8

56.2100.572.345.848.6

71.0

457.5 -91 .5

-178. 3-100.1

33.722.13.5

-310. 5

pomes-tic pro-duction,

etc.*

1.92.43.23.60.95.25.14.64.55.31.6

41.6 " '

3.0-12.9

25.05.72.61.6

25.0

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

* This figure, derived from preceding columns, represents the excess ofdomestic production over nonmonetary consumption of goldchieflyconsumption in the arts. In any given month, however, it may be pre-dominantly affected by the fact that on the final day of the month (a)gold bullion or foreign gold coin recently imported may not yet havereached a reserve bank or the Treasury, and (6) gold bullion recentlywithdrawn from stock for export may not yet have been actually ex-ported. The figures are subject to certain unavoidable inaccuraciesin official reports of gold imports and exports.1

Allowance has been made for gold earmarked at the Bank of Englandfor account of the Federal Reserve Bank of New York4

Differs from Department of Commerce figure since $8,900,000 de-clared for export on Feb. 28 was not actually taken from the FederalReserve Bank of New York until Mar. 1.

v Preliminary figures.

Back figures. See Annual Report for 1931 (table 30).

GOLD MOVEMENTS TO AND FROM UNITEDSTATES

[In thousands of dollars]

From or to

BelgiumEnglandFranceGermanyNetherlandsPortugalSwitzerlandCanadaCentral AmericaMexicoArgentinaColombiaEcuadorPeruUruguayVenezuelaAustraliaBritish IndiaChina and Hong

KongDutch East IndiesJapanPhilippine IslandsAll other countries *_

Total

1933

June(preliminary)

Im-ports

239

3 239

Ex-ports

2,10055

1,445

3 3,600

May

Im-ports

12062344216

84

113

83115755100

1,785

Ex-ports

15, 714121

115

10

864

6,10022,925

January-May

Im-ports

55,20230,0441,071

19,347

18,4045872,522

692

245788506

2,83825,62912,811

8016,7022,4922,292

182, 378

Ex-ports

79928,48317,0071,8009,2652,295

642015

864150

2 28, 56289,323

1 Includes all movements of unreported origin or destination.2 $22,462,000 exported to Italy.3 At New Yorkimports, $239,000, exports, $3,600,000.

KINDS OF MONEY IN CIRCULATION[Money outside Treasury and Federal Reserve banks. In millions of dollars!

End of month

1932January . _FebruaryMarch.AprilMay . .JuneJulyAugustSeptember. . _ _ . .OctoberN ^ V f t T T i b p T * , . . . . . . .December

1933JanuaryFebruaryMarch. _ _.AprilMayJune p . . .

Total

5,6415,6045,4595,4655,4805,6955,7265,6925,6535,6285,6485,6755,6456,5456,3206,0035,8125,721

Goldcoin

407406404411435453454449445445454468

479571367335324321

Goldcertifi-cates

850820779758735716694669644624635601

591649393323280265

Stand-ard

silverdollars

323131303030303029292929

282828282828

Silvercertifi-cates

367363355356355353351350359361361371

350362376360359361

Treas-ury

notesof 1890

111111111111

111111

Sub-sidiarysilver

260260259257257256254255257257258258

250252258255256257

Minorcoin

115114114114114114113113113113113113

111111112112112113

UnitedStatesnotes

282280274282290289289285286289291294

287301266261265269

FederalReservenotes

2,6482,6342,5462,5512,5582,7802,8382,7932,7312,6892,6752,7162,7073,4053,6213,3623,1673,061

FederalReserve

banknotes

333333333333

33

175099

125

Na-tionalbanknotes

677691693703702701700744785817826820

836861879915922920

v Preliminary figures.Back figures .See Annual Reports for 1931 (table 35), 1930 (table 32), and 1927 (table 22).



MEMBER BANK RESERVE BALANCES[In millions of dollars]

Month or week


Reserves held

Totalallmemberbanks

New YorkCity*

Otherreservecities

'Country'banks

Excess reserves

Totalallmember

banksNew York

City iOther

reservecities

Country"banks

1931November...December...

1932JanuaryFebruary....MarchAprilMayJuneJulyAugustSeptember-OctoberNovember. _December...

1933JanuaryFebruary ..

2,1182,0691,9791,9071,8991,9962,1382,0622,0032,0732,1812.3072,3782,4352,5162,291

Week ending (Friday)January 6January 13January 20January 27February 3February 10February 17February 24

2,5082,559

2,4912,4382,3772,2752,233

774766

724681687780874783767832927

1,0011,0501,083

1,109

1,1211,1711,1411,057997931855801

832807

767753747749800819781797812863887911

965

512503

488473465466464459455444443444441440

442441

57.059.5

35.443.859.0152.1277.1234.4204.4269.9345.5435.9482 2525.8

583.8417.3

10.718.5

4.57.217.888.1155.189.475.0127.7193.4241.6266.8283.2

286.274.5

934946950997

1,0071,006984987

453442445436

435440436444

308.7350.1311.8232.9

173.7123.260.8

19.416.91.8

11.317.335.791.5

111.491.6

108.9119.6160.5181.8206.9254.2291.0

219.1236.4238.1288.4

303.5281.9294.5

26.930.929.225.323.828.330.533.637.933.332.433.733.735.743.451.8

* Central reserve city banks only. * Figures not available by weeks.Back figures.See Annual Report for 1931 (tables 49 and 56).

> March, April, and May data not available.

MEMBER BANE DEPOSITS[In millions of dollars]

MonthTota l -

all mem-ber

banks


Net demand and time deposits

NewYorkCity*

Otherreservecities

" Coun-try"

banks

Tota l -all mem-

berbanks

Net demand deposits

NewYorkCity

Otherreservecities

" Coun-try"

banks

Tota l -all mem

berbanks

Time deposits

NewYorkCityi

Otherreservecities

11 Coun-try"

banks

1931November.December.

1932JanuaryFebruary..MarchAprilMayJuneJulyAugustSeptemberOctober. ~November.December.

1033JanuaryFebruary

25,21827,43826,59225,71525,43125,38625,46625,07524,71224,74424,97325,29225,47625,492

25,64124,978

6,6126,414

6,1655,7975,7605,9506,1596,9575,9516,0846,3086,5596,7626,877

7,0506,722

11,35011,048

10,70610,41310,29110,10910,08110,0329,8309,8339,8539,9399,9649,941

10,0239,847

10,2569,976

9,7209,5059,3809,3279,2269,0878,9318,8278,8118,7958,7518,674

8,5688,409

16,35815,985

15,44714,78914,57514,58914,67914,41314,15714,14114,40814,67914,86414,965

15,11614,645

5,6535,546

5,3435,0014,9595,1385,3425,1545,1335,2175,440

5,8045,9376,1095,842

6,2736,1065,9215,7235,6225,4925,4255,4335,3045,2835,3165,4025,4325,424

5,470

4,4324,333

4,1834,0643,9933,9593,9113,8263,7203,6413,6523,6493,6283,604

3,5373,435

11,86011,45311,14510,92610,85610,79710,78710,66310,55510,60310,56510,61210,61210,527

10,52510,333

959

822796800811816803818867869929957940

941

5,0764,9424,7864,6904,6684,6184,6564,5994,5264,5504,5384,5374,5324,517

4,5534,479

5,8255,6435,5375,4405,3875,3685,3155,2615,2116,1865,1595,1455,1235,0715,0314,974

i Central reserve city banks only.Back figuTts.See Annual Report for 1931 (table 49).

March, April, and May data not available.



ALL BANKS IN THE UNITED STATESLOANS AND INVESTMENTS[In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private

banks under State supervision]

Date

All banks

Total Loans Invest-ments

Member banks

Total Loans Invest-

Nonmember banks

Mutual savings banks Other nonmember banks

Total Loans Invest-ments Total LoansInvest-ments

1928June 30...Oct. 3Dec. 31.

1929Mar. 27...June 29....Oct. 4Dec. 3 1

1930Mar. 27...June 30...Sept. 24...Dec. 3 1

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

1932June 30-.-Sept. 30. _.Dec. 31.

57,26557,21958,266

58,01958,47458,83558,417

57,38658,10857,59056,209

55,92455,02153,36549,704

46,07145,85244,946

39,46439,67140,763

40,55741,51242,20141,898

40,68640,61839, 71538,135

36,81335,38433, 75031,305

27,83426,98526,063

17,80117,54917,504

17,46216,96216,63416,519

16,70017,49017,87518,074

19, 11119,63719,61518,399

18,23718,86718,883

35,06134,92935,684

35,39335,71135,91435,934

35,05635,65635,47234,860

34,729

33,07330,575

28,00128,04527,469

24,32525,155

24,94525,65826,16526,150

25,11925,21424,73823,870

22,84021,81620,87419,261

16,58715,92415,204

10,75810,60410,529

10,44810,0529,7499,784

9,93710,44210,73410,989

11,88912,10612,19911,314

11,41412,12112,265

9,2421 9,242

9,390i 9,390

9,55619,556

9,46319,463

9,7471 9,747

9,98719,98710,506

U0506

5,5181 5,518

5,6941 5,694

5,89215,892

5,94515,945

6,00916,009

6,06816,068

6,169

3,72313,723

10,48810,316

i 10,31610,182

6,2186,130

i 6,1306,079

13,6963,664

13,6643,518

13,5183,739

13,7393,920

13,9204,337

14,3374,2704,186

14,1864,103

12,96212,04913,19213,23613,20713,36613,020

12,86812,70612,37111,362

11,20810,5939,7868,641

7,7557,4917,295

9,6439,8289,913

9,9189,96110,1449,803

9,6239,3958,9688,196

7,9067,3996,7075,8275,1174,9314,780

3,3203,2223,2793,3173,2463,2213,217

3,2453,3093,4023,1653,3023,1943,0792,814

2,6372,5602,515

i Figures of preceding call carried forward.

ALL BANKS IN THE UNITED STATESDEPOS-ITS, EXCLUSIVE OF INTERBANK DEPOSITS

(In millions of dollars. Includes national banks, State commercialbanks and trust companies, mutual and stock savings banks, and allprivate banks under State supervision]

Date

1928June 30-.Oct. 3__.Dec. 31-.

1929Mar. 27-June 29_.Oct. 4__.Dec. 31. .

1930Mar. 27.June 30..Sept. 24.Dec. 3 1 -

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

1932June 30_.Sept. 30.Dec. 31. .

Allbanks

53,39853, 72056, 76654, 54553,85255,18055,28953,18554,95452,78453,03951,42751,78249,15245,82141,96341, 94241,643

Memberbanks

32,13332,13834,826

33, 21532,28433,00433,865

32,08233,69031,83932,560

31,15331,56629,46927,432

24,75524,90324,803

Nonmember banks

Mutualsavingbanks

Othernonmem-ber banks

8,653i 8,653

i 8,8498,983

8,916

i 8,9169,197

i 9,1979,507

i 9,50710,017

i 10,01710,105

10,020i 10,02010,022

12,61212,92913,091

12,48112,58413,19312,507

12,18712,06711,74810,972

10, 76710,1999,6668,284

7,1887,0206,818

' Figures of preceding call carried forward.

32133

NUMBER OF BANKS[All banks in the United States; includes national banks, State com-

mercial banks and trust companies, mutual and stock savings banks,and all private banks under State supervision]

Date

1928June 30.Oct. 3 -Dec. 31.

1929Mar. 27.June 29.Oct. 4-_Dec. 31.

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

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

1932June 30.Sept. 30.Dec. 31.

Total

25,94125,82825,57625,34125,11024,95124,63024,22323,85223,59022,76922,37221,90321,29419,96619,04618,79418,390

Member banks

Total

8,9298,8968,8378,7558,7078,6168,5228,4068,3158,2468,0527,9287,7827,5997,246

6,9806,9046,816

Na-tional

7,6857,6707,6297,5697,5307,4687,4037,3117,2477,1927,033

6,9306,8006,6536,3686,1456,0806,011

State

1,244, 2261,208,186,177,148,119

1,0951,0681,0541,019

946878835824805

Nonmemberbanks

Mu-tualsav-ings

banks

6151615

6121612

6111611

6091609

6061606

1603600

1600597594

1594594

Othernon-

mem-ber

banks

16,39716,31716,12715,97415,79215,72415,49915,20814,93114,73814,114

13,84113,52113,09512,12311,47211,29610,980

1 Figures of preceding call carried forward.



REPORTING MEMBER BANKS IN 90 LEADING CITIES *[In millions of dollars]

Date

Jan. 4Jan 11Jan.18Jan 25Feb 1Feb. 8Feb. 15Feb. 22Mar. 1_ . .Mar. 8Mar. 15Mar. 22 . _Mar. 29Apr. 5. _ _ _ . _Apr. 12Apr. 19 _ .Apr 26May 3May 10May 17May 24May 31

June 7June 14June 21June 28

Total90 leiding cities

Loans and investments

Total

16,70816,67716,66016,631

16,75616 62216, 61716, 315

15, 90015,728

2 16,01716,02116,001

15, 92715,88715,87616, 048

16,28816,31816,34616, 32916,426

16 48516, 52116 80516, 665

Loanson se-

curities

3,7513,7233,6993,662

3,7513 6963,6943,693

3,7273,759

2 3,7623,7253,644

3,6173,5843,5833,638

3,6983,7153,7243,6483,713

3,7423,7983 7693,748

Allotherloans

5,0515,0115,0154,986

5,0314,9505,0074,807

4,5544,551

2 4,6264,6654,688

4,6404,6614,6274,703

4,7064,6894,6974,7044,772

4,7694,7614 7314,704

Investments

Total

7,9067,9437,9467,983

7,9747,9767,9167,815

7,6197,418

2 7,6297,6317,669

7,6707,6427,6667, 707

7,8847,9147,9257,9777,941

7,9747,9628,3058,213

U.S.se-curities

4,9164,9684,9984,991

4,9714,9824,9344,836

4,6314,427

2 4, 5804,5784,583

4,5854,5844,6354,678

4,9094,9084,9344,9634,948

5,0134,9905,3075,254

Bor-rowingsat F.R.banks

39333446

50365265

4141,066

849379283

177168158124

12980857876

60535026

New York City

Loans and investments

Total

7,0377,0557,0867,132

7,2227,0737,0786,809

6,5126,4126,5236,4846,457

6,4396,4556,4396,627

6,7536,7906,8476,7866,933

6,9706,9937,0396,913

Loanson se-

curities

1,5841,5801,5591,562

1,6431,6061,6141,621

1,6401,6681,6741,6261,555

1,5481,5351,5381,611

1,6761,7111,7351,6631,733

1,7771,8401,8131,791

Allotherloans

1,8491,8221,8491,836

1,8781,7991,8581,653

1,4391,4531,4831,5251,563

1,5151,5571,5351,614

1,6151,5941,6171,6241,694

1,6821,6771,6421,609

Investments

Total

3,6043,6533,6783,734

3,7013,6683,6063,535

3,4333,2913,3663,3333,339

3,3763,3633,3663,402

3,4623,4853,4953,4993,506

3,5113,4763,5843,513

U.S. se-curities

2,5022,5602,6092,631

2,6002,5722,5222,452

2,3382,1862,2532,2102,185

2,2152,2082,2362,269

2,3532,3572,3782,3842,429

2,4432,3982,4842,438

Bor-rowingsat F.Rbanks

18363248314784

182723

89 other leadingcities

Totalloans

and in-vest-

ments

9,6719,6229,5749,499

9,5349,5499,5399,506

9,3889,316

2 9,4949,5379,544

9,4889,4329,4379,421

9,5359,5289,4999,5439,493

9,5159,5289,7669, 752

Bor-rowingsat F . R .banks

39333446

50365265

231434366232199

159141135124

12980857876

60535026

i See note on p. 273, MAY BULLETIN, explaining the basis on which these figures have been compiled.* On Mar. 9 a member bank in Chicago took over assets and assumed deposit liabilities of a nonmember bank aggregating approximately

$135,000,000.BROKERS' LOANS

REPORTED BY THE NEW YORK STOCK EXCHANGE

[Net borrowings on demand and on time. In millions of dollars]

End of month

JanuaryFebruary - -March

AprilMayJune

JulyAugustSeptemberOctoberNovemberDecember

Total

1932

512525533

379300244

242332380

325338347

1933

359360311

322529780

From NewYork banks

and trust com-panies

1932

374385391

300243194

195248292

263278279

1933

270298247

268461694

From privatebanks, brokers,foreign banking

agencies, etc.

1932

138140142

795749

478588

616168

1933

906264

546886

Back figures.See Annual Reports for 1931 (table 63) and 1927(table 47).

MADE BY REPORTING MEMBER BANKS IN N.Y. CITY[In millions of dollars. Monthly data are averages of weekly figures]

Month or date

1932MayJuneJulyAugustSeptemberOctober.-.November.December.

1933January-_.February..MarchAprilMayJune -.June 7June 14June 21June 28

Total

436377335344409411354393380433398399578755699782775764

Forown ac-count

385342309319385389336377365416373374555712675754719

For ac-count ofout-of-town

banks

For ac-count ofothers

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

Back figures.See Annual Report for 1931 (table 62), 1930 (table 56)etc.



ACCEPTANCES AND COMMERCIAL PAPERBANKERS' ACCEPTANCES OUTSTANDING (DOLLAR

ACCEPTANCES)[In millions of dollars]

End of month

1931February..,MarchApril -May .JuneJulyAugustSeptember-OctoberNovember-December..

1932JanuaryFebruary...MarchAprilM a yJune ._JulyAugustSeptember-OctoberNovember. .Decembsr..

1933Jan aaryFebruary. _.MarchAprilMayJune

Totalout-

stand-ing

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

9961,0401,002

974

961919911879787747705681683699720710

707704671697669

Held by Fed-eral Reserve

banks

Forownac-

count

85123162124953970

420647418305

1197636164

361232344

2307280164

1341

Forac-

countof for-eign

corre-spond-ents

45643140938034124322810099

126251

314312335292183985949433932

40

413045433636

Held by acceptingbanks

i otai

550472410464554668606410230296262

332343377455510518563574573605655604

626325261404505

Ownbills

151131125171196232168162112125131

159175155188225200197198159199268224

256201153206229

Billsbought

398341285293357436438248118171131

174168222268286318366376414406386380

370124108199276

Heldby

others

4294404414443792781866763

161156

1951891631159096705564522862

38428586

115

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

Back figuresSee Annual Reports for 1931 (table 70), 1930 (table 64),1929 (table 58), and 1928 (table 61).ACCEPTANCES PAYABLE IN FOREIGN CURRENCIES-

HOLDINGS OF FEDERAL RESERVE BANKSfin thousands of dollars]

End of month I

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

1930

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

21,58331,587

1931

36,11923,9581,0631,0741,073

10,55134,371

145,21548,80433,50133,38633,429

1932

33,44433,47830, 77830, 73630,83730, 76230,64530,83430,84930,65930,65229,489

1933

29,03628,99724, 7887,1816,9817,089

Back figuresSee Annual Reports for 1928 (table 12), 1927 (table12), 1926 (table 24), etc.

CLASSES OF BANKERS' ACCEPTANCES (DOLLARACCEPTANCES)


End of month

OUTSTANDING

1932MayJuneJulyAugustSeptemberOctoberNovember . . .December

1933JanuaryFebruaryMarchAprilMay

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

1932MayJune.July.AugustSeptember..OctoberNovember..December..

1933January...February..MarchAprilMay

Total

787747705681683699720710

707704671

12

44

230728016413

onim-portsintoU.S.

88

Basedon ex-portsfromU.S.

Basedon goodsstored inUnitedStates(ware-house

credits)or

shippedbetween

domesticpoints

217193178192212222237

222219184199185

110587382

Dollarex-

change

Basedon

goodsstored

inforeigncoun-

tries orshipped

be-tweenforeignpoints

10

11111

co1

269271265250234231232228

237231230234225

(*>5421111

1107976

* Total holdings of Federal Reserve banks include a small amount ofunclassified acceptances.

Less than $500,000.Back figures.See Annual Reports for 1931 (tables 67 and 15), 1930

(tables 61 and 14), etc.

COMMERCIAL PAPER OUTSTANDING[In millions of dollars]

End of month

JanuaryFebruary...MarchAprilMayJuneJulyAugustSeptember.OctoberNovember. .December,..

1930

404457629553541527528526513485448358

1931

327315311307305292289271248210174118

1932

10810310610811110310010811011311081

1933

8584726460

Back figures.See Annual Reports for 1931 (table 66) and 1930 (table)



FEDERAL RESERVE BANE RATESDISCOUNT RATES

[Rates on rediscounts for and advances to member banks under sections13 and 13 (a) of the Federal Keserve Act]

Federal Reserve bank

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

Bate ineffect onJuly 1

Date estab-lished

JuneMayJuneJuneJan.Nov.MayJuneSept.Oct.Jan.June

1,193326,19338,1933

10,193325.193214.193127.19338,1933

12,193023,193128.19322,1933

Previousrate

3H43

Back figures.See Annual Report for 1931 (table 36).

The following special rates were also in effect at allFederal Reserve banks on July 1, 1933:

PercentAdvances to member banks under sec. 10 (b) of the Federal Re-

serve act, as amended by sec. 402 of the act of Mar. 9,1933 5Advances to nonmember banks and trust companies under sec.

404 of the act of Mar. 9,1933, as amended by the act of Mar. 24,1933 5

Discounts for individuals, partnerships, and corporations underthe third paragraph of sec. 13 of the Federal Reserve act, asamended by sec. 210 of the act of July 21,1932 6

Advances to individuals, partnerships, and corporations securedby direct obligations of the United States under the last para-graph of sec. 13 of the Federal Reserve act, as amended by sec.403 of the act of Mar. 9,1933 4K

BUYING RATES ON ACCEPTANCES

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

Maturity

1-15 days . . . .16-30 days. . .81-45 days46-60 days.. .61-90 days91-120 days..121-180 days.

Rate ineffect on

J u l y lDate estab-

lished

June 29.1933dodododo

. . . . .dodo

Previousrate

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

Back figures.See Annual Reports for 1931 (table 37) and 1928 (table35).

OPEN-MARKET RATESRATES IN NEW YORK CITY

Month or week

1932MayJuneJulyAugustSeptemberOctoberNovemberDecember

1933JanuaryFebruaryMarchAprilMayJuneWeek end ing-

May 27June 3June 10June 17 _.June 24

Prevailing rate o n -

Primecom-

mercialpaper,4 to 6

months

2H-3

2 -2H2 -2X

2 -Q2 -2

2 -2H2

Primebank-

ers'accept-ances,

90days

HHX

YrVtHH

ltt-89*

Timeloans,

90days*

l -V

l -13*

Average rateon

Call loans

New

2.502.502.082.002.001.351.001.00

1.001.003.271.291.001.00

1.001.001.001.001.00

Re-newal

U.S.Treas-

urynotesand

certifi-cates,3 to 6

months

2.502.502.082.002.001.351.001.00

1.001.003.321.371.001.00

1.001.001.001.001.00

Average yieldon

0.31.34.22.14

.O4

.07

.011.34

.45

.29


SECURITY PRICES AND SECURITY ISSUESSECURITY PRICES

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

Month or date

Number of issues.1932March

AprilMayJune _ -JulyAugustSeptemberOctoberNovemberDecember

1933JanuaryFebruaryMarchAprilMay -June

June 7 _J u n e 14_. .__J u n e 21J u n e 28 _ _ _ - - _ _

Bonds*

6083.780.276.072.875.184.387.085.283.182.284.182.576.775.482.086.8

86.686.286.687.6

Pre-ferredstocks1

20

103.294.290.383 685.398.6

101.899.897.495.497.895.793.195.7

103.3109.7

108.6109.6110.2110.4

Common stocks (1926=100)

Total

421

57444034365358504847494543486375

73747577

Indus-trial

351

5442383436525648454546

'4342496577

75767880

Rail-road

33

32221714162935282626282726263844

43434446

Publicutility

37

93736855558491817880827367647997

94999897

Selected groups of industrial issues

Auto-mobile

13

55343028264554434040423834426882

80798287

Build-ing

equip-ment

12

29222018193034282525252322284560

56586263

Chainstore

16

58494235364953484747464340445463

60636366

Chem-ical

11

8561524850758374717682747282

104122

120120123127

Cop-perandbrass

8

30222017203847343226292829395564

67646262

Elec-tricalequip-ment

4

776752404373786360

615452618499

99999999

Ma-chin-ery

10

47373329304448423938393937435771

67727172

Oil

15

45383937425554474746464241475870

66687374

Steel

10

32232016183342332826272423325163

61616468

Tex-tile

28

312623202233SO333028272624284354

53525358

* 20 high-grade industrials; average price. Revised.* Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity.Back figures.See (for principal series) Annual Report for 1931 (table 129).

UNITED STATES GOVERNMENT SECURITIES[In millions of dollars]

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

Year and month

192519261927192818291930103119321932June

JulyAugustSeptember-OctoberNovember -December. .

1933JanuaryFebruary-__MarchApri l .M a yJune . -

New issues

Total(do-mestic

andfor-

eign)

6,2016,3147,5568,040

10,0916,9093,0991,165

7810663759444

1246520162544

110

Domestic

To-tal i

5,1255,1896,2196,7899,4206,0042,8601,157

7810460739443

1246520162544

110

Stateandmu-nici-pal

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

755742534633628993317138

4098

Corporate

Bondsand

notes

2,4522,6673,1832,3852,0782,9801,240

3054

62256

4796

1910

1613

Stocks

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

311200120224303139

For-eign

1,0761,1251,3371,251

671905229

80232010000000

Re-fund-

ingissues

(do-mesticandfor-

eign)

9251,0462,2201,8581,422

7119495836457

1087643323545373

2060

112

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

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

Back figures.See (for figures of new issuesannual and quarterlybasis) Annual Report for 1931 (table 128).

Month

1931Total (12 months) .

1932JanuaryFebruaryMarchAprilMayJuneJulyAugust -^..,SeptemberOctober.NovemberDecember

Total (12 months)..1933

JanuaryFebruary,.-MarchAprilMayJune

Outstanding at endof month

Total

17,61517,82018,19018,28718,72919,16119,29719,75820,29620,48520,47620,448

20,45420,68520,99121,08721,46922,158

Bondsand

15,10215,10215.10215.10315,31815, 71515,74416,45417,28817,79617,79617,522

17,52817,80617,80517,80618,37119,003

Certif-icatesandbills

2,4132,7183,0883,1843,4113,4463,5533,3043,008

2,6802,026

2,9262,8793,1863,2813,0983,155

Increase or decrease() during month

Total

1,754

-1330537007442432136461538189

2,920

623130696382

Bondsand

notes

Certif-ioatesandbills

10

. . . . . . .

21630720710834608

-274

2,430

6278- 1

1565632

1,116

- 2 330637096

22736

107-240-206-310

- 0246

400

- 4 730795

-18357

NOTE.Figures relate to interest-bearing public debt; matured andnoninterest-bearing debt amounted to $381,000,000 at the end of June1933. Figures include obligations held in Government trust funds.

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



PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES[Index numbers; 1923-25 average** 100. The terms adjusted and unadjusted refer to adjustment for seasonal variation]

Year andmonth

19191920192119221923- . .19241925.1926192719281929193019311932

1929SeptemberOctober..NovemberDecember

1930January. -February-MarchAprilMayJune .JulyAugust-SeptemberOctober.,NovemberDecember

1931January..February.March...-AprilMayJuneJulyAugust -_SeptembeOctober .NovembeDecembe

1932January _FebruaryMarchApril-...May.JuneJulyAugust--SeptembeOctober .NovembeDecembe

1933January. _FebruaryMarch...ADrilMay

Industrial production *

Total i

Unad-usted

83876785

10195

104108106111119968164

12312110896

10310910610710599919092908477

828790908983807877757268

717168646159565967686560

64"64"60

67P 7 8

Ad-justed

121118110103

10610710410410298939090888684

848687888783827876737374

726967636059586066676566

65' 6 3

6066

vll

Manufactures1

Unad-usted

84876786

10194

105108106112119958063

12311910793

10211010911010698898890878274

818891919083797776727066

70706663

' 6 159555866

'676358

6363

' 5 868

*79

Ad-justed

121119110101

10510710410410197928989868582

838687878782827875717173

71686461

' 5 958575966

' 6 66364

64' 6' 5 6

66P 7 6

Minerals i

Unad-usted

77897074

1059699

108107106115998471

127127114110

108104

9194

1021031001011011059689

878482838486868283908479

747577726561626673807872

7176746576

Ad-justed

118116110116

11010898

1041041021009694959293

898789918787867978838184

777884796763646570747576

7379817278

Construction contracts awarded (value)

Total

Unad-usted

636356798494

122129129135117926328

112104

9484

7889

1021131251161078582756859

586877827874686359524330

252326313132313230282422

1816141619

Ad-usted

110107103102

9510410210110599958181787673

717977736563615959554938

312726272627273030292728

2219141416

Residential

Jnad-usted

443044688195

12412111712687503713

73676653

464454626154484852514637

374250624741363232292620

16151616141212111212108

778

1113

Ad-justed

73676761

564952535249474952524843

444747444037353332302723

19171514121111121212109

888

1011

All other

Unad-usted

799065888694

1201351391421421258440

144135116109

104126141156178166155115108948677

758998

107104101948781715739

333035434547464845413533

2723181924

Ad-usted

140139132136

128148144140148140135106105999998

93104100968584828180766750

413536383739404544434143

3327181720

Factory em-ployment 3

Unad-usted

1071088290

10496

1001019997

101887462

1051039995

939393939189868586848179

767778787775747475716968

666766646159575962626160

5859575860

Ad-justed

~" ""

1021019997

969493929190878483828180

787878787876757473706969

686866646260585960616161

59* 59

575861

Fac-torypay

rolls

Unad-usted

981187781

10396

101104102102108876645

11211110399

949898979491838283817574

687375747268646462595656

525452494643404042444241

3940373942

Freight-carloadings * *

Unad-justed

84917987

10097

103106103103106927556

12111810289

899190939795959699978674

747475777977787678787061

585958575352515361655852

5151485156

Ad-justed

106104102102

1009996979693928987868484

828080807977767269696869

646261595452515154575758

5654505356

Com-mod-

ityprices8

1391549897

10198

104100959795867365

96959493

939190908987848484838180

787778757372727271707069

676666666464656565646463

6160606063

Preliminary. Revised. *Average per working day.1 For indexes of groups and separate industries see p. 462; for description see BULLETIN for February and March 1927; for back figures see

BULLETIN for March 1932, p. 194.13-month moving average, centered at second month; for description and back figures see BULLETIN for July 1931, p. 358. For indexes of groups and separate industries see p. 463; for description and back figures see BULLETIN for November 1929 and November 1930.4 For indexes of groups see p. 431; for back figures see BULLETIN for February 1931, p . 108.1 Index of Bureau of Labor Statistics; 1926s 100. Index numbers for groups of commodities are given on p. 464.


J U L Y 1933 FEDERAL RESERVE BULLETIN 431

MERCHANDISE EXPORTS AND IMPORTS[In millions of dollars]

Month

JanuaryFebruary

AprilMayJuno

JulyAugustSantemberOctoberNTnvATTii)f*r

Year

Merchandise exports

1929

488442490425385393403381437

529442427

5,241

1930

411349370332320295267298312

327289275

3,843

1931

250224236215204187

181165180

205194184

2,424

1932

150154155

135132114

107109132

153139132

1,611

1933

121102108105

Merchandise imports

1929

369369384411400353353369351391338310

4,399

1930

311282300308285250221218226247204209

3,061

1931

183175210186180173174167170169149154

2,091

1932

136131131

127112110

799198

10510497

1,323

1933

968495

88P 1 0 7

Excess of exports

1929

11972

106

15- 1 5

40

501186

137104117

842

1930

1006769243544467986

808566

782

1931

664926

292414

6- 210

364430

334

1932

1523249

204

2717

34

483435

"288

1933

251813

17

Preliminary.

DEPARTMENT STORESSALES, STOCKS[Index numbers;

Month

JanuaryFebruaryMarch

AprilMayJuneJulyAugustSeptemberOctober.. -NovemberDecember

Year

1923-25 average=100]

Index of sales *

Adjustedfor seasonal

variation

1932

787872

797269

656568

696360

1933

606057

6767

*>66

Withoutseasonal ad-justment

1932

646469

747266

464971

7573

106

69

1933

494950

6867

? 6 3

Index of stocks (end ofmonth)

Adjustedfor seasonalvariation

1932

757370

696867

646160

616160

1933

585754

5355

, . _ _ .

Withoutseasonal ad-justment

1932

666973

726965

595963

676956

66

1933

525455

5556

v Preliminary.i Based throughout on figures of daily average saleswith allowance

for changes from month to month in number of Saturdays and for 6national holidays: New Year's Day, Memorial Day, Independence Day,Labor Day, Thanksgiving Day, and Christmas. Adjustment for sea-sonal variation makes allowance in March and April for the effectsupon sales of changes in the date of Easter.

Back figures.See BULLETIN for November 1930, p. 686.

r Revised.

FREIGHT-CAR LOADINGS, BY CLASSES[Index numbers; 1923-25 average-100]

1933

Jan. Feb. Mar. Apr. May

TotalCoalCokeGrain and grain prod-

uctsLivestockForest productsOreMiscellaneousMerchandise *

Total..CoalCokeGrain and grain prod-

uctsLivestockForest productsOreMiscellaneousMerchandise l

Adjusted for seasonal variat ion

565640

615022205769

546545

584919205166

505535

694520234762

535329

995322175263

565233

54281457

Without seasonal adjustment

516344

595320

54565

517152

564619

54464

485135

583921

54563

514427

765024

85465

564733

815130216068

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

Railway Association.Back figures.See> BULLETIN for February 1931, pp. 108-110.



FOREIGN BANKING AND BUSINESS CONDITIONSANNUAL REPORT OF THE NETHERLANDS BANK

The annual report of the Netherlands Bankfor the year ended March 31, 1933, was pre-sented to the general meeting of shareholderson May 30, 1933. Sections of the report aregiven herewith:1

The world will do well to abstain from arti-ficial measures in monetary policy and to con-centrate on the two remedial measures withoutwhich no recovery can be achieved. Thesemeasures are:

(1) Improving and strengthening interna-tional relations for a return to freer exchangesof goods and services and to the internationalgold standard;

(2) Putting its own national economy in orderby each country.

To the extent that these remedial measuresare applied and their influence makes itself felt,a revival of the international flow of credit andcapital will take place, and conditions will becreated for a gradual but sound and permanentrecovery of the general price level.

Position of the Netherlands.These reme-dies are no less essential for the Netherlandsthan for other countries. It is superfluous torepeat that this country has been seriously af-fected by present world conditions. The harm-ful effects of the depression on Netherlandsproduction, commercial enterprises, harborson national income in generalare obvious.Like any other country, the Netherlands ispowerless by its own efforts alone to exert adominant influence for good on the world'scommercial policy and on the innumerable ob-stacles to international trade. Such influencecan be exercised only through cooperative ac-tion by all the great countries. The Nether-lands can, however, testify that it renouncedthe principle of free trade only through neces-sity, and even then to only a limited extent;moreover, it has lent its cooperation and ex-erted strong pressure to bring about an im-provement in this respect. The forthcomingWorld Economic Conference will afford theopportunity both for cooperation and improve-ment along these lines. If, however, the Con-ference should fail to bring about an improve-ment, if Governments prove unable to realize

1 The report, available in Dutch, contains in addition tables showing

the operations of the bank in detail, and sections dealing with the devel-opment of the international situation, the Lausanne Conference, theWorld Economic Conference, work of the Preparatory Commissions,etc. All amounts of money expressed in florins have been convertedinto dollars at par and then expressed in round figures. For earlierreports see Bulletin for September 1932, August 1931, 1930, etc.

the aims which they themselves declared nec-essary at Lausanne, we shall have to considerhow this country, thrown on its own resources,can best deal with the exceptional difficultieswhich will then arise. Then all possibility ofgeneral international cooperation will be cutoff, and all energies will have to be concen-trated on immediate self preservation. Thenalso Netherlands capital can no longer be madeavailable for foreign investment, but will haveto be reserved entirely for the country's ownrequirements. The interests of the Nether-lands no less than of other countries demandthat matters should not come to such a pass.The Netherlands realizes this fully and is pre-pared to accept the consequences of that posi-tion; but the decision whether or not the in-dispensable measures for world recovery shallbe taken rests with the other countries.

Putting in order the Netherlands economy.Whatever may be the outcome of the firstremedy suggested above, there is no questionthat the application of the secondthe puttingin order of one's own national economyisimperative for the Netherlands. While thistask will undoubtedly be made easier by anyimprovement in international relations, it willby no means be obviated. Internal adjust-ments will continue to be indispensable.' Agri-culture, industry, commerce, shipping, in shortthe entire productive plant of the nation, eitherworks at little or no profit or works at a loss,and can maintain itself only with the help ofreserves accumulated in previous years. Eventhough an improvement in international rela-tions should take place within a short time, theNetherlands will still have to reduce costs ofproduction all along the line. This is the onlyway by which

frb_071933

Documents

assistant secretary

federal reserve examiner

assistant chief

assistant director

assistant deputy governor

federal reservebulletinjuly

division of bank operations

division of examinations