Federal Reserve Bulletin August 1915 - St. Louis Fed

FEDERAL RESERVEBULLETIN

ISSUED BY THE

FEDERAL RESERVE BOARDAT WASHINGTON

AUGUST, 1915

WASHINGTONGOVERNMENT PRINTING OFFICE

1915

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

FEDERAL RESERVE BOARD.

EX OFFICIO MEMBERS.

WILLIAM G. MCADOO,

Secretary of the Treasury,

Chairman.

JOHN SKELTON WILLIAMS,

Comptroller of the Currency.

CHARLES S. HAMLIN, Governor.

FREDERIC A. DELANO, Vice Governor.PAUL M. WARBURG.

W. P G. HARDING.

ADOLPH C. MILLER,

H. PARKER WILLIS, Secretary.

SHERMAN ALLEN, Assistant Secretary.

M". C- ELLIOTT, Counsel.


TABLE OF CONTENTS.

Page.Work of the board 175Earnings and expenditures of Federal reserve banks 176The cotton situation -. 180State bank membership in Federal reserve system 182Gold settlement fund 183Address by Mr. John Perrin, of the Federal Reserve Bank of San Francisco. 186Address by Mr. D. C. Wills, of the Federal Reserve Bank of Cleveland 189Clearance system, establishment of 192Informal rulings of the board 211Circular and regulations 215Conference of bank examiners 217Law department 218General business conditions '. 225Movement of principal assets and liabilities of Federal reserve banks 233Gold imports and exports 236Acceptances 240Paper currency outstanding 241Distribution of rediscounts 242Resources and liabilities of Federal reserve banks. 246Federal reserve agents' accounts 248

173


FEDERAL RESERVE BULLETINVOL. 1 AUGUST 1, 1915 No. 4

WORK OF THE BOARD.

The work of the Federal Reserve Board dur-ing the month of July has included the follow-ing principal elements:

(1) The preparation and issue of new regu-lations relating to trade acceptances, designedto facilitate the discounting of bills of exchangedrawn against sales of goods and accepted bypurchasers.

(2) The preparation and issue of completeregulations (in conjunction with the TreasuryDepartment) governing the redemption andreturn of worn and mutilated Federal reservenotes.

(3) Investigation of conditions as to themoving of crops, the holding of conferences re-lating thereto, and the issue of special instruc-tions to Federal reserve agents thereon.

(4) Review of conditions relating to thegranting of trustee and executor powers, andthe establishment of a definite policy regardingthe same.

(5) Study of methods for obtaining fullinformation regarding the condition of mem-ber banks, for use by Federal reserve banks inpassing upon rediscount applications, and theholding of conferences relating thereto.

Pursuant to the announcement made somemonths ago, the Board has compiled a com-plete tabular showing of the expenses andearnings of the Federal reserve banks from thedate of their organization to the close of busi-ness on June 30, 1915, and presents the figuresin this issue (p. 176).

Further steps have been taken toward theorganization of the New Orleans branch of theFederal Reserve Bank of Atlanta by electingdirectors and making tentative plans with re-spect to the undertaking of business. Threedirectors have been chosen by the Federal Re-serve Board, as follows:

'Mr. P. H. Saunders, of New Orleans, La.Mr. Albert P. Bush, of Mobile, Ala.Mr. James E. Zunts, of New Orleans, La.

Three directors have been chosen by theFederal Reserve Bank of Atlanta, as follows:

Mr. Sol. P. Wexler, of New Orleans, La.Mr. John EL Fulton, of New Orleans, La.Mr. W. J. Davis, of Jackson, Miss.One additional director remains to be chosen

by the Federal Reserve Bank of Atlanta, andthis director will act as manager of the bank.

During the month the board has had undervery careful consideration the question of timeand conditions under which Federal reservebanks should begin to act as fiscal agents of theUnited States Government in accordance withthe provisions of the Federal reserve act.

Considerable work has been done during themonth by the committee on State banks andthe division of audit and examination in mak-ing the necessary arrangements for the admis-sion of State banks applying for membership inthe Federal reserve system, in arranging withState bank authorities for the supplying of thenecessary information, and in investigating thestatus of the various applicants for admission.The procedure now in force with reference toadmission is, in brief, as follows:

1. After approval by the committee on ad-mission of State banks, a letter or telegram,with the necessary instructions, is to be sentto the Federal reserve agent.

2. After receipt of an application from theFederal reserve agent, reports, digest, andrecommendation are to be submitted (a) to thecommittee on admission of State banks forapproval; (6) to counsel for approval as tolegal form of application and as to the legalityof suggested conditions; (c) to.the Board forfinal approval.

During the month of July members of theBoard have with its approval accepted invita-tions to appear before various gatherings ofbankers and to address them on questions re-lating to the Federal reserve system. This isin pursuance of the policy of the Board ofkeeping in touch with the various organiza-tions and informing them of the Board's atti-tude as to pending problems.

175


176 FEDERAL EESEBVE BULLETIN". AUGUST 1,1915,

EARNINGS AND EXPENDITURES OF FEDERAL RESERVEBANKS.

Several months ago the Federal ReserveBoard authorized the publication of a com-parative statement of earnings and expenses ofall Federal reserve banks for the period ter-minating at the close of business June 30, 1915,the banks having been opened on November16, 1914. It was directed that the statementof earnings and expenses be published periodi-cally thenceforward.

Accordingly there is herewith presented acomparative statement of earnings and ex-penses for the period November 16, 1914-June30, 1915. The classification employed wassubmitted to the governors of reserve banksat their recent meeting in Chicago, on June 14,1915, and has since then been informally con-sidered with other operating officers.

The statements of expenses and earnings ofthe 12 Federal reserve banks, submitted bythe banks at the request of the Federal ReserveBoard as of June 30, 1915, show that the sys-tem is paying current expenses and carryinga surplus to its organization, equipment, andcost-of-notes accounts. The earnings of thesystem from November 16, 1914, when thebanks were opened, to June 30, 1915, were$918,588.59, or about $25,000 over currentexpenses. During that period expenditures ofabout $1,777,000 were incurred, but of this sum$378,922 was for organization expenses,$202,136 for equipment, and $302,159 was thecost of preparing Federal reserve notes. Theseexpenditures should be distributed over a periodof perhaps several years of operation. Currentexpenses during the seven and one-half monthswere $894,117. The first order placed forFederal reserve notes was for $250,000,000.After consultation with the operating officersof the Federal reserve banks a second order fora similar amount was given, making the totalof such notes prepared 8500,000,000.

The earnings of the system during the monthof June were $163,747.07, or more than one-third greater than the average monthly earn-

ings for the seven and one-half months sinceNovember 16, 1914, Current expenses forJune were, however, only $122,473.92, whichis less than 3 per cent in excess of the averagemonthly current expenses of the banks toJune 30. These figures furnish a basis ofcomparison between conditions at this timeand the average for the entire period coveredby the statements of expenses and earnings.

The statement, a complete detailed analysisof which follows, shows average earnings forwhat may be roughly termed the first one-halfyear of the operation of the system of 4.3 percent on capital, against an average percentageof current expenses to capital of 4.2 per cent.The Federal Reserve Bank of Richmond reports7.5 per cent of net earnings, by which is meanttotal earnings less current expenses, and theFederal Reserve Bank of Atlanta earnings of6.1 per cent. The net earnings of the FederalReserve Bank of Dallas for the same period are2.4 per cent. Gradual growth in the financialstrength of the banks is seen in the fact thatfor June earnings in excess of current expenseswere shown by the Federal reserve banks ofBoston and San Francisco, besides the threesouthern banks and the New York and Chicagobanks, which show excess of earnings over cur-rent expenses for the entire period under con-sideration. .

. I. EARNINGS.

The total earnings of the Federal reservebanks from November 16, 1914, the day thebanks were opened for business, to June 30,1915, amounted to $918,588.59. Of this totalabout 59 per cent was from notes discounted,over 24 per cent from municipal warrants, alittle over 10 per cent from acceptances, about6 per cent from United States bonds, and lessthan 1 per cent from miscellaneous, mainlyexchange, operations.

Over 37 per cent of the total earnings arecredited to the three southern banks, the earn-ings of the Richmond bank being exceeded only


AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 177

by those of the New York bank, whose paid-incapital is, however, almost 25 per cent in excessof the combined paid-in capital of the threesouthern banks. In all four banks, viz, NewYork, Richmond, Chicago, and Atlanta, eachreport over $100,000 of total earnings for theseven and one-half months under discussion.These four banks, as well as Dallas, show anexcess of earnings over current expenses.

While nearly 60 per cent of the total earningsof all the banks is derived from rediscounts ofcommercial paper, this percentage is very closeto 100 in the case of the three southern banks,and much less for the eastern banks, whoseprincipal earnings are from funds invested inmunicipal warrants. This is particularly trueof the New York bank, whose earnings frominvestments in the latter class of paper consti-tuted over 60 per cent of its total earnings.The Boston and Philadelphia banks reportabout 50 per cent and Cleveland over 42 percent of all earnings from this class of business.The western banks, including San Francisco,show, without exception, larger earnings frominvestments in United States bonds than frominvestments in municipal paper, which is issuedmainly by eastern cities. Thus, the Chicagobank reports 25.6 per cent of its total earningsunder the head of United States bonds, asagainst 25.5 per cent under the head of " War-rants"; St. Louis, over 16 per cent from in-vestments in United States bonds, as againstless than 5 per cent from warrants. Minneap-olis shows relatively larger earnings from war-rants, having purchased late in December oflast year a relatively large amount of short-term notes of the State of Minnesota. As arule, the western banks purchase these warrantsthrough the eastern banks. Cleveland is theonly eastern bank to report any earnings underthe head of United States bonds. Of the$92,000 earned from acceptances the share ofthe eastern banks is over 73 per cent. Of thewestern banks Chicago and San Francisco onlyreport substantial earnings from this class ofbusiness, a large portion of which comes tothem through the Federal Reserve Bank ofNew York.

II.—EXPENDITURES.

A—Current expenses.

Of a total expenditure for the system of about$1,777,000 incurred to June 30, 1915, the cur-rent expenses of the banks since November 16,1914, constituted about 56 per cent. Over 63per cent of the current expenses of the bankswent as compensation for personal servicesand over 55 per cent as salaries to officers andthe clerical staff of the banks. This percen-tage, while varying from bank to bank, shows,however, but little variation by geographicsections, the four eastern banks, for instance,indicating the same percentage of officers' andclerks7 salaries as the four western banks, viz,55 per cent as against 53 per cent shown for thethree southern, more active, banks. Over 11per cent of the total current expenses is repre-sented by the item "Rent/* and about 7 percent by the item "Printing and stationery."The operating ratio of the banks, i. e., the percent relation of the total current expenses toearnings shows a falling tendency, this ratiobeing 97 per cent for the period since Novem-ber 16, 1914, and less than 75 per cent for themonth of June.

B—Organization expenses.

The organization expenses of the banks con-sist in the first place of amounts contributedby the banks to defray the expenses of the Fed-eral Reserve Board, the total for the periodsince November 16 being $191,921.94, Thesecontributions, beginning with July 1, 1915, willbe included among the current expenses of thebanks. Over $187,000 expended for local re-quirements by the banks prior to November 16,1914, are also classed as organization expenses.

C—Equipment

Expenditures of a non-recurring charactermade in the purchase of furniture, safes, ma-chines, and the cost of installing fixtures, vaults,etc., have been brought together under theabove common head. This expenditure re-sults in the acquisition of a more permanentform of assets which should be spread as an


17.8 FEDERAL BESERVE BULLETIN.

expense over the entire period of use, and notmerely over the first fiscal year.

D—Cost of Federal reserve notes.

For similar reasons the cost of printing andshipping the Federal reserve notes has beenset up separately and will be charged only inpart to the first year's expenditures.

EARNINGS AND CURRENT EXPENSES RELATEDTO AVERAGE CAPITAL.

The earnings and current expenses of the sev-eral banks have been related,to the average cap-ital of these banks. This average was obtainedby using for the periods of November 16, 1914,to February 1, February 2 to May 1, and May 2to June 30,-the amounts of capital reported for-each bank as at close of business on November19, February 4, and May 7, respectively. Thesefigures were multiplied by 78, 89, and 60, the

number of days in each of the three periods,and the sum of the three products for each bankwas divided by 227, the number of days fromNovember 16, 1914, to June 30, 1915. In thismanner a weighted average capital was ob-tained, which, it is believed, is sufficiently ac-curate for the purpose of calculating the percent relations between earnings and capitaland expenses and capital. These latter per-centages were obtained by using the weightedcapital of each bank as divisor, and the earn-ings and expenses as dividends. The quo-tients thus obtained were multiplied by thefraction f -§-f-

The following table shows the amounts ofcapital used for each of the three periods, theweighted average capital, and the percentagesof earnings and expenses to the capital of eachreserve bank for the period November 16,1914,to June 30, 1915:

Earnings and current expenses of the Federal reserve banks related to their average capital.

[In thousands of dollars.]

Federal reserve banks.

Capital reported at close of businesson Fridays.

Nov. 19,1914.

Feb. 4,1915.

May 7,1915.

DaysX

capital[OOO's omit-

ted).

Weightedaveragecapital.

Percentageof current

earnings tocapital.

Percentageof currentexpensesto capital.

BostonNew York. . . .Philadelphia..ClevelandRichmondAtlanta. . . . . . .Chicago..St. Louis ,Minneapolis..,Kansas City..DallasSan Francisco

Total...

1,6203,3222,0882,0261,089787

2,195935808935957

1,296

3,1846,6334,0843,9972,0721,4274,3001,8241,6021,7731,6902,537

4,7819,9446,1885,9593,2522,2576,5592,7742,3452,7542,780

1,446,093897,620871,301464,470323,809947,450401,706346,302395,967391,856560,521

3,0696,3713 9543 8382 0461 4264 17417701525174417262,469

Percent.1.94.32.21.9

11.611.64.83.03.42.28.83.5

Percent.3.23.22.73.14.15.54.28.45.36.56.44.7

18,058 35,123 53,487 7,743,691 34,112 4.3 4.2


Earnings and expenditures of each of the Federal reserve banks prior to and since November 16,1914, to June SO, 1915.

I. Earnings, Nov. 16.1914. to Juno30,1915:

Bills discounted;AcceptancesInvestments-

United States bondsWarrants

Sundry profits

Total

II. Current expenses, Nov. 16,1914,to June 30,1915:

Federal advisory council (fees)..Directors1 feesLegalfeeaSalaries-

Bank officersClerical stallSpecial officers and watch-

menOther

Traveling expenses-Directors.Officers and clerks

Per diem allowance of directors.TelephoneTelegraphPostageExprossaeo... . . . . . . . . . . . .RentInsurance and premiums on

fidelity bondsLight, heat, and powerPrinting and stationeryRepairs and alterationsAnother

Total

III. Current earnings, June, 1915...

IV. Current expenses, June, 1915....

V. Organization expenses:Assessments for general ex-

penses of the Federal ReserveBoard Nov. 10,1914, to June30t1915

Miscellaneous expenses incurredprior to Nov. 16,1914

Total

VI. Equipment:Furniture and fixturesVaultsMachinesOther

Total

VII. Cost of Federal reserve notes...

Boston.

$5,989.5212,976.66

18,424.3863.21

37,453.80

310.006,377.85

600.25

18,216.6013,149.57

275.00

1,199.021,087.74

680.00614.56111.86847.96

1,653.877,733.35

821.18485,71

4,384.99389.34

3,006.36

61,945.21

10,121.45

8,683.33

17,265.02

12,999.57

30,265.19...

9,455,79

552.84

10,008.63

20,297.51

New York.

$28,212.4337,165.46

104,003.821,115.65

170,497.36

5,480.002,250.00

39,299.8931,936.43

2,449.092m. so

2,175.55926.40

1,620.00715.50242.45

1,250.35700.69

26,083.30

1,175.76

5,369.23

5,492.01

127,433.15

19,928.84

17,240.20

35,434.18

30,766.13

66,200.31

0,963.99

3,930.759,382.89

20,283.63

09,983.44

Philadel-phia.

$14,080.3711,602.13

26,017.711,480.30

53,180.71

338.542,970.00

300.00

21,617.7617,869.19

3,644.57980.46950.84365.55700.00478.69438.10

2,022.641,488.155,489.56

2,608.49735.72

2,720.04678.12

1,396.82

67,699.24

7,820.39

9,262.38

22,238.96

14,893.00

37,131.90

4,20S.2S

5,479.604,561.14

14,252.02

27,798. (M

Cleveland.

$18,163.775,781.88

1,541.1418,885.25

169.18

44,541.22

380.001,610.001,025.00

18,600.1623,541.90

2,000.241,725.811,090.00

694.812,660.251,829.90

618.033,781.89

1,309.11

7,167.35

0,087.80

74,022.28

Richmond

$146,540.14

292.40453.75

147,280.29

2,2S0.00500.00

16,502.8712,764.94

680.44830.50

1,542.98810.83

1,550.00195.38220.90

2,155.352,243.073,481.25

999.47382.52

1,523.86953.72

2,139.52

51,663.60

7,640.77 | 30,207.10

12,087.01

21,511.14

15.SG6.42

37,377.56

4,632.449,532.803,390.77

910. 79

18,472.80

26,888.86

8,063.94

11,555.93

12,011.92

23,507.85• — . , . . - ; .

3,702.71

7,037.00

10,799.71

11,566.18

Atlanta.

$102,631.57

184.58

102,816.15

250.004,575.001,004.10

13,860.0712,163.02

1,216.98

1,389.551,429.63

m. io128.56295.511

1,609.611,700.004,062.52

454.7835.54

2,270.3927.50

1,570.40

48,906.31

16,918.30

7,802.31

8,342.05

13,867.87

22,209.92

1,160.99

3,039.61

4,200.00

11,566.18

Chicago.

$46,942.4811,209.71

31,826.2531,938.162,827.94

124,744.54

160.001,620.00

500.00

31,250.0226,821.84

2,952.182,447.50

1,478.58I,5i6.79

780.007?J. 35430.30

3,344.192,015.24

14,666.66

2,410.69807.55

8,784.101,186.394,637.07

10S, 618.45

17,G82.48

13,236.30

23,307.05

16,472.59

39,779.64

9,290.306,900.000,879.682,478. 75

25, COS. 73

29,133.75

St. Louis.

$24,788.021,426.65

1,650.715,597.51

11.55

33,474.44

2,720.00

34,170.8323,439.06

957.62758.35

768.592,020.301,620.00

421.93424.22

3,420.11626.41

10,503.40

1,753.90

7,301.84122.80945.48

91,9S3.84

4,897.73

10,802.74

9,S48.55

5,S54.30

15,702.85

9,S17.52

6,762.20370.54

16,950.20

16,625.75

Minneapo-lis.

$12,103.122,030.17

7,480.5G10,643.26

75.48

32,332.59

60.001,915.001,173.75

17,253.3111,852.07

1,161.99685.22

532.531,452.02

830.00333.95235.87

1,410.451,106.163,250.02

2,505.1798.58

3,508.13506.09779.10

50,649.41

6,741.82

• 7,253.90

8,557.98

13,204.70

21,762.68

5,656.5015,105.351,591.25

49.00

22,402.10

11,142.02

KansasCity.

$12,464.152,923.49

6,894.681,056.39

23,338.71

283.602,110.00

551.20

16,820.8218,879.67

675.00813.33

3,259.231,192.502,375.00

334.44407.34

5,633.391,149.675,288.87

830.37838.50

7,256.25

2,351.98

71,051.16

5,740.38

10,228.93

9,879.48

15,60S. OS

25,578.46

5,324.2715,071.4111,184.7014,056.28

45,636,GG

12,349.32

Dallas.

$95,074.17

.94

95,075.11•

300.00960.00

93.50

19,498.2515,094.24

718.502,374.50

1,116.80552.83860.00321.31188.89

2,058.383,022.806,279.65

4,394.27

8,187.2678.24

2,115.45

68,214.87

23,6S6.06

10,172.96

10,163.92

14,556.13

24,720.05

2,381.90115.00

6,724.38

SanFrancisco.

$34,685.826,969.11

8,331.313,861.43

53,847.67

2,140.00

23,066.6719,416.35

57.00

168.002,702.10

210.00247.50337.10

1,325. 402G5.75

10,550.44

1,2S6.921S4.35

3,017.163,913.392,112.31

71,930.44

12,325.75

7,639.92

13,817. OS

20,809.41

34,026.49

932.35

3,365.02

9,221.28 ! 4,300.37

11,536.14 ; 17,271.32

Totalsfor thesystem.

$541,675.7692,085.26

57,724.05220,720.31

6,382.61

918,588.59

2,0S2.1434,757.857,997.80

270,057.25226,928.28

14,694.379,156.36

16,587.9115,818.5013,178.105,260.015,992.84

26,907.7316,589.84

101,170.91

20,556.113,568.47

62,423.607,755.59

32,634.30

894,117.9G

163,747.07

122,473.92

191,921.91

187,001.02

378,922.96

63,5S7.0446,784.5053,22S.4238,536.77

202,136.79

302,159.11

wB

Iw.d

CO


180 FEDERAL BESEBVE BULLETIN. AUGUST 1,1915.

THE COTTON SITUATION.

On June 30 the Federal Reserve Board, witha view to informing itself thoroughly regardingthe situation in the cotton States and the prob-lems to be met in moving the cotton crop thisyear, appointed a special committee to inves-tigate and report on the status. That theFederal reserve agents might be advised of thedesire of the Board and might furnish such dataas were in their possession, Mr. W. P. G, Hard-ing, member of the Board and chairman of thespecial committee, issued the following letter tothe Federal reserve agents in the cotton region:

The Federal Reserve Board, realizing the pos-sibility of congestion of stocks of cotton this falldue to abnormal conditions in our export trade,desires full information regarding the facilitiesin your district for warehousing and financingthe cotton which would under ordinary condi-tions be exported. The Board has, therefore,appointed a committee to study the questionand gather data on the subject. The Boardfeels that in view of the large surplus reservesnow held by the banks throughout the countrythere should be no difficulty, so far as the finan-cial ability of the country is concerned, in pro-viding for necessary advances upon that part ofthe crop which will eventually be shippedabroad. It appears from data in hand thatthe demand for our domestic manufactures ofcotton goods is increasing, and it seems to theBoard's committee that there is no occasionwhatever for a depression in the price of rawcotton such as was experienced last fall. Thecommittee believes that arrangements shouldbe made to assure producers of cotton of thecooperation of merchants and bankers in theproper handling of the crop.

In this connection attention is called to theestimate by the Department of Agriculture thatthe South has a warehouse capacity of 9;664r000 bales. If proper use is made of this ca-pacity and of the loanable resources of thebanks, including both members and nonmem-bers of the Federal Reserve system, a gradualmarketing of the crop will be entirely possible,and any danger of a repetition of last year'sconditions will be averted.

The writer, as chairman of the board's com-mittee, would be glad to have your views onthis subject, and is anxious to secure yourcooperation in formulating plans to reassureand protect the farmers, merchants, and othersinterested in our cotton-growing industry.

Subsequently a committee of the board helda conference at the Federal Reserve Bank ofNew York on July 16, which was participatedin by a number of New York bankers havingclose connection with the cotton States. Thegeneral feeling as to the prospect for the com-ing autumn was optimistic, the bankers takingthe view that all funds needed for crop movingwould be readily forthcoming.

Mr. Harding has analyzed the cotton cropconditions now prevailing as compared withthose of a year ago, as follows:

In view of the apprehension manifested bysome of the southern farmers and business menregarding the marketing of the cotton crop nowapproaching maturity, it is well to make com-parison between the conditions affecting thecotton market that prevailed last August andthose existing at the present time. For thesake of greater clearness this comparison willbe made in parallel columns.

August, 1914.The shock resulting from

the sudden outbreak of warbetween Great Britain, Rus-sia, France, Servia, andJapan on one side and Ger-many and Austria-Hungaryon the other created a finan-cial crisis throughout theworld and paralyzed oceantransportation at a time whengrain and other crops weremoving to the ports for ship-ment abroad. Bankers andmerchants in the XJnitedStates owed England andthe Continent on currentaccount about $450,000,000,Owing to lack of shippingfacilities this indebtednesscould not be liquidated in anormal manner by export-ing commodities, and. inmany cases gold settlementswere demanded, BO that theexcess of our gold exportsover imports from June 1 toDecember 30,1914, amount-ed to $156,287,254.

Maturing grain crops inthe South insufficient forhome consumption.

Moderate corn crop andgood wheat crop in theWest.

Federal reserve banksnot yet organized.

July, 1915.The war continues, the

number of belligerents be-ing increased by the addi-tion of Turkey on the side ofthe Teutonic allies and byItaly on that of the Ententepowers.

Germany's and Austria'swar ships confined in theNorth Sea, Baltic, and Adri-atic. Their commerce-de-stroying cruisers in otherseas have been either de-stroyed or interned. Ger-man and Austrian merchantvessels interned in variousports throughout the world.The sea area surroundingthe British Ieles declared awar zone and blockaded byGerman submarines. About90 per cent of all trans-Atlan-tic commerce carried inBritish bottoms.

Current indebtedness ofAmerica abroad entirelyliquidated. Trade balancein our favor for fiscal yearended June 30 more than$1,000,000,000. Excess of

fold imports over exportsanuary 1, 1915, to June 30,

1915, $140,070,000.Very large southern crop

of corn in sight, and in-creased crops of other grains.Large corn and wheat cropsin the West.

Federal reserve banks inoperation.


AUGUST l, 1915. FEDERAL RESERVE BULLETIN. 181

All exchanges doing ac-tive business in a normal

Cotton and stock ex-changes closed, and allfinancial centers in fear ofan avalanche of stocks,bonds, and mortgages re-turned to this country by securities held in Europe.Europe for sale. Lack of Such sales by Europe notability or disposition to " * ' '

way.Gradi

vancing prices of AmericanLual absorption at ad-

or dispositionmake loans on cotton.

Interest rates throughoutthe country abnormallyhigh, and while there wasno longer a call loan mar-ket, rates on what had beencall loans at 2 and 2£ percent were advanced to 6 and8 per cent.

Trade in textiles dull;demand poor.

General industrial depres-sion, closing of mills, cur-tailment of production, andmuch labor without em-ployment.

Railroad earnings de-creased rapidly.

Unusually large use offertilizer, and heavy bor-rowings on cotton crop inadvance of its preparation.

Cotton acreage 37,400,000

discouraged and perhapsnecessary as a basis for cred-its here for purchases offoodstuffs, cotton, and sup-plies.

Money rates abnormallylow, and banks* generallyreport large surplus ofloanable funds.

Textile trade fairly good.Some complaint of lack ofdyestuffs. Agitation formanufacture of dyes in thiscountry.

Improved business condi-tions; mills reopened; laborwell employed.

Railroad earnings in-creasing, with good pros-pects for the remainder ofthe year. Steel mills ac-tive. Better business incoal and iron.

Cotton acreage 31,535,000acres, which produced, in- acres. Estimates on grow-cluding linters, approxi- ing crop run from 11,000,000mately 17,000,000 bales. to 13,000;000 bales, with the

probabilities favoring thelower figure.

Under the most adverse conditions conceiv-able, with demoralization in every money mar-ket, with high interest rates, with emergencycurrency being issued daily in large volume,with enormous gold shipments abroad, withcrippled shipping facilities, without adequateinsurance protection, and with ocean freightsthree to five times normal, we began in August,1914, to market a crop of nearly 17,000,000 balesof cotton. Financial institutions, already hardpressed and fearing all manner of unforeseencontingencies, were unable and unwilling tomake advances on cotton. In addition to thisthe southern farmers, who have this yearplanted record-breaking food crops, were facedwith a deficiency in home-raised foodstuffs, andwere in many cases forced to sell cotton to payoff pressing indebtedness and to secure ade-quate food supplies.

Attention is called to the fact that the highprices for cotton now prevailing in Germanyand Russia, about 30 cents a pound, will at-tract cotton to those countries in spite of ap-

parently insurmountable obstacles, just as highprices paid for cotton abroad during the CivilWar made blockade running a steady business.There seems to be no question that ample fundscan be obtained to finance in a normal way amuch larger volume of cotton than was takencare of last year, and that even if Germany andAustria-Hungary should be forced to suspendcotton manufacturing entirely statistics showthat the mills of the United States, Great Brit-ain, Spain, Russia, Italy, Japan, China, and In-dia have spindles sufficient to absorb every baleof cotton that is likely to be cultivated.

It should be noted that the reduction inAmerican cotton acreage this vear amounts tomore than 5,000,000 acres, and that Egypt andIndia have also made radical reductions in cot-ton acreage. It is probable that the world'scotton crop, based on an average vield an acre,will be about 5,000,000 bales less than last year.

Of course it is desirable that as broad a mar-ket as possible for cotton be established. Thatit is the earnest desire of the President, born inthe South and a resident of that section inyouth, during the period of life when one's ten-derest ties and most enduring friendships areformed, to assist his native section in solvingthe problems now confronting it, can not bedoubted, as the South's cotton problem is es-sentially national.

But it should be remembered that the Presi-dent owes a higher duty to the South, to thewhole country, and to mankind at this juncturethan the establishment of cotton prices. Seri-ous complications between this country and anygreat foreign power would certainly not en-nance cotton values. No man is as familiarwith the great world problems of to-day andthe relationship of this country to them as isthe President, and he may be trusted to do hisduty as he sees it, regardless of private appealsor public clamor.

Cotton, unlike grain, is a commodity themarket value of which depreciates in time ofwar, and the South as aproducer of that com-modity has suffered. The actual position ofcotton, however, is so much stronger thanwas the case a year ago, and financial and otherconditions are so very much more favorable,that there can be no doubt that if the Southwill keep cool and will refrain from merelyweakening its own position by unwise action,the present nervousness regarding the marketfor the growing crop will soon disappear.

Even in the face of all the adverse condi-tions during the last 12 months the averageprice of cotton has been about what might


182 FEDERAL RESERVE BULLETIN. AUGUST 1,1915,

have been expected for a 17,000,000-bale crophad there been no war, and there is every rea-son to believe that the average price of cottonduring the next 12 months will be higher.

The real question is, Will southern mer-chants and southern bankers, and all othersinterested in southern trade, cooperate insecuring for the cotton producers the benefitof this average price, and will the cotton pro-ducers themselves do their part? My knowl-edge of southern character and of southernbusiness conditions justifies a confident beliefthat an affirmative answer will be given.

The cotton tragedy of 1914 will be succeededin 1915 by nothing more serious than a drama.

State Bank Membership in Federal ReserveSystem.

The following States have passed lawsexpressly authorizing State banks to becomemember banks:

Idaho.Iowa.Kentucky.Maine.Massachusetts,Michigan.Minnesota.Mississippi.

Missouri.Montana,Nebraska.New Jersey.New York.North Dakota.Ohio.Oregon,

South Carolina.South Dakota.Texas.Utah.Virginia.Washington.

In the following States there has been nospecific legislation, but the State authoritieshave ruled that State banks may subscribe forstock in the Federal reserve bank of the districtin which they are located:Alabama.Arizona.Arkansas.California.Delaware.Georgia.

In the following States the State authoritieshave filed opinions to the effect that Statebanks can not subscribe for stock in a Federalreserve bank:

Illinois.Indiana,Kansas.Louisiana.Maryland,New Mexico,1

North Carolina.Rhode Island,3

Tennessee.Vermont.West Virginia.Wisconsin.

Connecticut. Nevada, Wyoming.1 As to trust companies but not as to other banks.J Only as to trust companies and not as to State banks.

In Pennsylvania, Mr. William Hargust,second deputy attorney general wrote, in replyto a telegram from Secretary McAdoo, that hewas unable to state positively whether or notState banks could subscribe for stock in aFederal reserve bank.

The counsel for the Cleveland bank has filedan opinion that all State banks in Pennsylvaniacan probably subscribe for stock in a Federalreserve bank though the question is not freefrom doubt.

The counsel of the Federal Reserve Bank ofPhiladelphia has filed an opinion to the effectthat it is probably all right as to trust com-panies located in Pennsylvania, but not as toother banks.

The attorney general of Oklahoma has filedan opinion to the effect that the laws of Okla-homa are not sufficiently clear to enable himto determine whether or not a State banklocated in Oklahoma can subscribe for stock in aFederal reserve bank.

The attorney general of Colorado has filed anopinion stating that a strict interpretation ofthe laws of that State would prohibit Statebanks from becoming members, but that suchlaws were passed prior to the passage of theFederal reserve act and that the legislaturecould not have intended to prohibit Statebanks from becoming members of a Federalreserve bank. He predicts favorable actionby the Colorado Legislature, but we have noreport that such action has been taken.

In Florida and New Hampshire the Stateauthorities have made no ruling one way or theother, but the counsel of the Federal ReserveBank of Atlanta has filed an opinion statingthat trust companies but not State banks maysubscribe for stock in a Federal reserve bank,and the counsel for the Federal Reserve Bankof Boston has expressed his opinion to* the effectthat the right of trust companies located inNew Hampshire to subscribe for stock mustbe determined by the charter of each individualtrust company, there being no general incorpo-ration law for trust companies.


AUGUST 1, 1915. FEDERAL RESERVE BULLETIN. 183

GOLD SETTLEMENT FUND,

The gold settlement fund has, since the issu-ance of the last Bulletin, shown a notable in-crease in gold deposits, which have nowreached a net total of $50,300,000 (as ofJuly 26). The number of transfers fc betweenthe banks has also been increasing. The firstwithdrawal from the fund was made on July14, the Federal Reserve Bank of Chicago hav-ing on that date requested that S2,000,000be paid to it through the subtreasury at Chi-cago. Its telegram was filed at 10.30 a. m.7and at 2.30 p. m. of the same day the AssistantTreasurer of the United States at Chicago ad-vised the bank of his readiness to make thepayment requested. The transaction is anexcellent illustration of the mobility and readyavailability of the moneys held in the goldsettlement fund.

In order to meet the wishes of the Federalreserve banks, the Board has made provisionfor the inclusion of overdrafts between theFederal reserve banks in the weekly settle-ment, the following letter having been sent toall banks on July 8; and the plan has been inoperation at three weekly settlements withsatisfactory results:

" Beginning with the weekly settlement ofJuly 15th, you are requested to include in yourtelegram of Wednesday evening the amounts ofoverdrawn balances in your accounts "Due to"other Federal Reserve Banks and also in youraccounts •"Due from77 other Federal reservebanks. The overdrafts reported will be in-cluded in the weekly settlement, the figuresgiven by the bank reporting an overdraft m itsaccount "Due from7' being used. That is toSSLJ, a bank which acknowledges an overdraftin its account with another bank arising fromits having issued drafts or made transfers toamounts m excess of the balance created by itsremittances to the second bank, will be chargedat the settlement with the amount which it ac-knowledges owing in its "Due from" account.This will of course be in addition to the amountwhich it now reports "Due to*7 the secondbank in the account arising from remittancesreceived from the latter.

/'This plan, it is thought, will frequentlyeliminate the necessity of special transfers onthe books of the gold settlement fund and willat the same time continue the present practice

of having charges made against the account ofany bank with the fund only upon specific au-thorization from such bank. It is adopted asa tentative measure. The board will be gladto have your views or suggestions as regardsthe matter.

" I t is not to be understood, however, thatthe adoption of this plan is intended to doaway with transfers between banks on thebooks of the gold settlement fund. Such trans-fers should be made whenever occasion arisesin which a transfer of this kind will facilitatethe transaction of the reserve bank7s exchangeor investment business and where the natureof the transaction between the banks is suchthat an immediate transfer of funds should bemade without waiting for the weekly settle-ment/7

In proposing a plan for a gold-settlementfund such as that which is now in operation, thePreliminary Organization Committee pointedout, in a report of June, 1914, that, with theestablishment of a central fund and weeklysettlements, the normal clearing effected bythe interchange of ordinary business transac-tions would render unnecessary the transfer oflarge sums of money in the payment of bal-ances arising between Federal reserve banks.Although it is still very early to draw con-clusions as to the extent to which this clear-ing has been operative, it is interesting to ex-amine the figures now available, covering 10weeks of operations, with a view to ascertain-ing the extent to which it has operated and towhich balances between the different bankshave served to extinguish each other. The fol-lowing table gives the total clearings at eachsettlement from May 20 to July 22, inclusive,amounting in all to $231,996,000, and the bal-ances at these clearings ^mounting to §50,-496,000.

Settlement of—

1915.May 20May 27June 3 . * . .June 10June 17June 24 1Julv lJulySJuly 15July 22

Totalclearings.

$43,522,000. 19,644,000

18,985,00025,354,00026,458,000IS,419,00021,3S9,00035,011,00017,192,00017,022,000

231,996,000

Balances.

$6,382,0005,433,0003,901,0004,625,0006,450,0002,405,0003,342,000

12,145,0002,783,0003,030,000

50,496,000


184 FEDERAL RESERVE BULLETIN. ADGDST 1,1915.

Thus by the process of offsetting the amountswhich each Federal reserve bank owes againstthe amount which the other banks owe it, thepayment necessary to settle the obligations isonly about 21.76 per cent of the total amountof the obligations; but the operations of thegold-settlement fund during the past 10 weeksshow clearly that even this relatively smalltransfer of funds does not have to be made infull, as the net change in the ownership of themoneys comprising the fund, shown in the fol-lowing table, has been only $12,054,000, orapproximately 5.2 per cent of the total obli-gations which have been settled through thefund.

BostonNe^rYorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas City , . .DallasSan Francisco

Total

Total netdeposits.

$3,230,00015,000,0003,500,0002,630,0002,320,000

260,0005,770,0003,220,0001,000,0003,480,0003,160,0002,830,000

46,400,000

Balance,July 22,

1915.

$7,707,0009,651,000

171,0004,256,0002,812,0001,304,0009,329,0001,657,0001,187,0003,611,0003,698,0001,017,000

46,400,000

Increase.

$4,477,000

1,626,000492,000

1,044,0003,559,000

is7,"666"131,000538,000

12,054,000

Decrease.

$5,349,0003,329,000

1,563,000

1,813,000

12,054,000

Considering the relatively short time whichthe fund has been in operation and duringwhich the process of normal clearing has beenoperative, this showing is very favorable, asfor a longer period, say of a year, the percentageof money transfer necessary to settle the totalobligations would probably be much smaller.The experience of the past 10 weeks indicatesthat a reserve bank which is a creditor at theclearings one week may be and often is adebtor the following week; and this suggeststhe conclusion that during a period of a year,in which the various factors affecting move-ments of money and exchange shall have com-pleted a cycle, the relative change in theownership of the fund will be even smaller inproportion to the total transactions, althoughjust how small can more accurately be deter-mined from the experience of the coming year.

A continuation of the summary of trans-actions given in the last issue of the Bulletinfollows, the form having been slightly changedin order to facilitate the inclusion of figuresfor gold withdrawals and transfers betweenFederal reserve banks.

Gold settlement fund—Summary of transactions June 17,1915, to July 82,1915.

Federal Reserve Bankof—

BostonNew YorkPhiladelphiaClevelandRichmond.. •AtlantaChicagoS t Louis

Kansas CityDallas.. . . . 'San Francisco

Total

Balance laststatement,

June 17,1915.

$3,574,0003,599 0001.780 0002,6950002,416 0001,749 0005,013 0001,869 0001,286 0002,514 0001,622 0001,253,000

29,370,000

Gold—

With-drawn.

•:

Deposited.

$600,000

570,000

1,170,000

Transfers—

From—

$200,000

200,000:

To—

5200,000

200,000

Settlement of June 24,1915.

Netdebits.

, 8355,000

917,0007,000

107,000168,000528,000

183,666

£46,6662,405,000

Totaldebits.

$2,841,0003,479,0002,512,000

171,000717,000417,000

3,982,0002,928,000

339,000562,000305,000166,000

18,419,000

Totalcredits.

$2,486,0004,358,0001,595,000

164,000610,000249,000

3,454,0003,172,000

156,0001,198,000

951,00026,000

18,419,000

Netcredits.

8879,000

244,000

636,000646,000

2,405,000

Balance infund afterclearing,June 24,

1915.

$3,419,0004,478,000

863,0003,288,0002,309,0001 581,0004,485,0002,113,0001,103,0003,150,0002,268,0001,483,000

30,540,000



Gold settlement fund—Summary of transactions June 17,19151 to

Federal ReserveBank of—

Boston

PhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolis..Kansas City

San Francisco

Total


BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas'CityDal las . . . . . . . . . " "San Francisco

Total


Boston . . . . . . . .New York ! " " . "PhiladelphiaClevelandRichmondAtlantaChicago "St. Louis """.Minneapolis. . .*".. .

Da l la s . . . . . . . .San Francisco.. " . . .

Total


BostonNew York . . . . ; ; : ; ; ; ;PhiladelphiaCleveland ....Richmond...Atlanta ""*"ChicagoSt. Louis"Minneapolis"..^

5SS.01"San Francisco• Total

Balance laststatement,

June 24,1915.

53,419,0004,478,000

863,0003,288,0002,309,0001,581,0004,485,0002,113,0001,103,0003,150,0002,268,0001,483,000

30,540,000

Balance,last

statement,July 1,1915.

. 53,817,000

. 2,356,00

. 1,822,003 520 00

. 2,095,00

. 1,640,005 837.00

. 1384,001 107 00

0000000n

3'702,000. 2,913,000. 1,047,000

31,840,000

Balancelast state-

ment, July8,1915.

16,474,000846,000959,000

3,633,0002,959,0001,447,000

13,968,000968,000

1,317,000

3,162,0001,618,000

40,890,000

Balancelast state-

ment,July 15,

1915.

$7,641,0006 475,000

884,0004,351,0003,434,0001,511,000

10,271,0001,256,0001,235,0003,697,0003,756,000

829,000

45,340,000

Gold.

With-drawn. Deposited.

$1,000,000

300,000

— ..

1,300,000

Gold.

With-drawn. Deposited.

$9,000,000

50,000

9,050 000

Gold.

With-drawn.

"$2,~666"666"

2,000,000

Deposited.

*i5,*666,'66o*500,00060,000

320,000

****42O,"666"

150,000

6,450,000

Gold.-

With-drawn.

. .

""'$566*666*

500,000

Deposited.

$500,000

1,060,000

1,560,000

Transfers.

From—

$480,000

480,000

To—

$450,000

30,000

480,000

Transfers.

From— To—

Transfers.

From—

'MY.'.""'.'.$179,000

"1*629*666"

1,208,000

T o -

$200,000962,000

46," 000*

1,208,000

Transfers.

From—

$183,000

1,000,000

1,183,000

T o -

*$i,'is3*666'

1,183,000

July ggt 1915—Continued.

Settlement of July 1,1915.

Net debits.

§2,572,66641,000

729,000

3,342,000

Totaldebits.

$2,845,0007,170,0003,095,000

123,000680,000403,000

3,399,0002,830,000

269,000438,000134,000

3,000

21,389,000

Totalcredits.

$3,243,0004,598,0003,054,000

355,000706,000462,000

4,721,0002,101,000

273,000990,000779,00047,000

21,389,000

Net credits

$398,000

232,00086,00059,000

1,322,000

4,000552,000645,00044,000

3,342,000


Netdebits.

$10,510,000863,000

193,000

416,000

163,000

12,145,000

Totaldebits.

$2,818,00018,018,0005,734,000

144,000951,000554,000

3,334,0002,490,000

61,000407f000364,000130,000

35,011,000

Totalcredits.

$5,475,0007,508,0004,871,000

207,0001,215,000

361,00011,465,0002,080,000

271,000244,000613,000701,000

35,011,000

Netcredits.

$2,657,000

63,000264,000

8,131,000

210,000

249,000571;000

12,145,000


Net debits.

"$333," 666'575,000

*i,*743*666'132,000

2,783,000

Totaldebits.

$2,478,0005,144,0002,026,000

173,000951,000522,000

2,971 0001,949,000

24,000460,000489,000

5,000

17,192,000

Totalcredits.

$3,445,0004811,0001,451,000'831,000

1,106,000506,000

1,228,0001,817,000

121,000. 618,000

933,000245,000

17,192,000

Netcredits.

$967,000

658,000155,00064,000

97,000158,000444,000260,000

2,783,000


Netdebits.

$1,213,00095,000

622,00024,000

942,000

48*666"86,000

3,030,000

Totaldebits.

$3,256,0003,962,0002,739,000

699,0001,394,000

510,0002,146,0001,254,000

166,000499,000389,000

8,000

17,022,000

Totalcredits.

$3,322,000"5,955,0001,526,000

604,000772,000486,000

1,204,0001,655,000

118,000• 413,000

831,000136,000

17,022,000

Netcredits.

$66,0001,993,000

401,000

442,000128,000

3,030,000

Balance Ufund afterclearing,

July 1,1915.

$3,817,0002,356,0001,822,0003,520,0002,095,0001,640,0005,837,0001,384,0001,107,0003,702,0002,913,0001,047,000

31,840,000

Balance infund afterclearing,July 8,

1915.

$0,474,000846,000959,000

3,633,0002,959,0001,447,000

13,968,000968,000

1,317,0003,539,0003,162,0001,618,000

40,890,000


1915.

$7,641,0006,475,000

884,0004,351,0003,434,0001,511,000

10,271,0001,256,0001,235,0003,697,0003,756,000

829,000

45,340,000


1015.

$7,707,0009,651,000

171,0004,256,0002,812,0001,304,0009,329,0001,657,0001,187,0003,611,0003,698,0001,017,000

46,400,000


186 PEDEKAL RESERVE BULLETIN, AUGUST 1,

FEDERAL RESERVE BANK OF SANFRANCISCO.

Mr, John Perrin, chairman of the board ofdirectors of the Federal Reserve Bank of SanFrancisco, delivered the following addressbefore the convention of the National Associa-tion of Supervisors of State Banks, Oakland,Cal., May 28, 1915.

A State banking department is an expression on the partof the State that the prosperity of its commerce and indus'try is of paramount material importance, and because othis, that supervision should be had of banking to makecertain that banking methods will be such as to conducemost to the development and maintenance of that pros-perity. If a surer safeguarding and a broader prosperityfor that commerce and industry may be had through thedevelopment of one great banking system, unified underFederal control, the State's interest will obviously lie thatway.

Banking is not a separate business of itself. It is onlyan incidental part of the great commercial mechanism.Banks have no independent right of existence; theirservice to commerce is the sole measure of the justificationof their being. It is therefore in the interest both of banksand of general business that the way should be opened forbanks to render greatest service. To restrict them in theopportunity of sendee, whether by limitation of legitimateactivity or by debarring from assured support, is to handi-cap commerce.

Banks are of two general classes, commercial and savings.This discussion will refer to commercial banks, and I trustthat I may be pardoned if I ask this gathering of bankingexperts to bear with me for indulging in some very ele-mentary statements; these will be preliminary to certainconclusions which I hope may not seem illogical.

The transactions of a retail merchant are in far largerproportion money transactions than are those of a bank.The peanut vendor's transactions, for instance, are one-half peanuts and one-half money. In summing up thetotal of a bank's transactions—receiving deposits, payingchecks, making loans, receiving payment of loans—it isfound that not over one-tenth are actual money transac-tions. In more than nine-tenths no money is used, onlypromises to pay money.

One having made a deposit may say, " I have money inthe bank." That is not the fact. In the first place, verylittle money is deposited. More than 90 per cent of thefunds offered for deposit are checks—promises to paymoney. In the second place, whether money or checksare used, a deposit is simply the purchase of the right todraw on the bank. Money or checks deposited becomethe property of the bank. The depositor has no money inthe bank, but has bought the bank's promise to pay money.

Nor does a bank lend money. The truth of this state-ment is easily illustrated. Suppose that .A and B are cus-tomers of the same bank, and that A owes B §1,000. Anegotiates a loan from the bank, receives 50 $20 gold piecesas the proceeds of his loan, and cancels his debt to B bypaying this gold to him. B then redeposits these goldpieces in the same bank. Can it be contended that thebank has loaned the gold pieces to A? It still has his notefor $1,000 running at interest, and it also has the goldpieces in its possession.; AVhat really has happened is thatA's promise to pay $1,000 has been shifted from B to thebank. The money used in the transaction was simply theinstrument for transferring the credit. A check or a simpleentry on the books of the bank would have been simplerand safer and would have served the same end.

If a bank does not lend money, what is the real natureof a loan transaction? It is this: A borrower gives to thebank his promise to pay money at a future date and re-ceives in exchange the bank's promise to pay money ondemand. It is an exchange of promises to pay money.The bank's promise is usually given in the form of a depositcredit and the borrower thereby acquires the same rightto draw upon the bank for any part or all of the amountas if he had bought the right to draw with a deposit of goldor checks.

What I have sought to make clear is that a bank's busi-ness deals very little with money but to the extent of morethan 90 per cent deals with promises to pay money,which is another way of describing credit—the wonderfuland economical device which has made large commercepossible,

A bank keeps in money only such small percentage ofits deposit liabilities as experience demonstrates is neces-sary to enable it to make good its promises to pay deposi-tors in money when they demand it. This is its moneyreserve.

A BANK'S FUNCTION.

A bank's function is to gather the funds temporarilyunemployed and lend them for short periods to those whocan use them profitably. Thus, half a dozen people, eachhaving a temporary surplus of $100, would, through theinstrumentality of the bank, provide the grain dealer withfunds to buy a carload of wheat. By selling to the millthe grain dealer would be enabled to repay such a tem-porary advance. The bank is the employment agency foridle funds. An ideal employment agency for men wouldplace every man in that employment in which his effortswould be most productive. There would be no unem-ployment and there would be maximum product. In likemanner that banking machinery would constitute the bestemployment agency for money which would keep allavailable funds uninterruptedly employed in the mostproductive commerce. It seems a fair statement, then,that the fundamental purpose of a commercial bankingsystem should be to bring all temporarily idle funds intothe most productive use in such a way as to most fully safe-guard commerce against interruption.


AUGUST 1,1915. FEDERAL RESERVE BULLETIN. is1;

DEFECT IN FORMER SYSTEM.

What has been the defect in our banking system? Ofall forms of money there is a total of nearly §4,000,000,000in this country, including that in the United States Treas-ury, in the pockets of the people, and in the vaults ofbanks. The deposit liabilities of banks aggregate$18,500,000,000. Obviously, if the banks had all themoney in the country they could not pay one-quarter oftheir deposits in money if all depositors made simulta-neous demand. Banks actually hold only about$1,600,000,000 of money in all forms, so as a matter of factbanks could not pay 10 per cent in money if all depositorsshould demand it at the same time. The banks haveloans, however, of $20,000,000,000. These have beenmad^ to the people, and really on behalf of the people,being made through banks as their employment agenciesfor idle funds. Frightened depositors clamoring for pay-ment in money, which they wish to hoard, in effect de-mand that their neighbors, to whom $20,000,000,000 havebeen loaned, shall stop the processes of production andcommercial activity. The lack of reason is clear, butpanic is a temporary paralysis of reasoning power.

In a threatening situation the law of self-preservationhas impelled each bank to try to fortify itself by addingto its stock of money. This it would try to do by callingfor payment of loans and by withdrawing in money theamounts due to it from other banks. Once such a processhas been started a general scramble has ensued with cumu-lative violence. There was no way of quickly or impor-tantly increasing the volume of money, and the totalamount in the country could not satisfy such a demand.The inevitable result has been that banks have ceasedmaking payments in money and have discontinued othermajor functions until the apprehensions of depositorssubsided.

The struggle of each individual bank wa3 a perfectlynatural one. It regarded its obligations as sacred. Itwould move Heaven and earth to avoid default. But nobank could fortify itself by adding to its stock of moneyexcept by correpondingly weakening other banks. Eachwas for itself against all the rest. Cooperation was lacking.We had no banking system, merely a vast number of indi-vidual units. The tendency to mutual destruction understress has been the main defect of our banking. The lossesthrough disruption of the processes of production and tradeby such a panic as that of 1907 would amount to billions.Nothing has been of greater commercial importance thanto find and adopt the best method of averting such crises.

[E REMEDY.

The difficulty has not been confined to our own country,but we have been the last of all the commercial countriesto apply the remedy. The principle of the remedy is verysimple, although not recognized until about the middle ofthe last century when England and France first came tounderstand it. Since then practically every commercial

2098—15 3

country has incorporated in one form or another the sameprinciple into its banking, the Federal reserve act givingit to this country. The remedy lies in gathering into acentral agency or agencies a portion of the money reservesof the banks, to be used for their common protection, inorder that they may continuously perform their functionsand thus safeguard general business. Whether under gov-ernmental direction, as in some countries, or under privatedirection, as in others, whether voluntary or by legalrequirement, such an agency with large money reservesoperating not primarily for profit, but for protection,achieves the same economic result. Obviously no solventbank need fear any demands made for payment if it canat any time convert its loans into means with which to pay.The maintenance of the ability to pay eliminates depos-tors' apprehensions. The certainty of replenishing itspaying power eliminates the bank's fears. The cause ofpanic is thus removed.

A FEDERAL RESERVE BANK.

Stripped of statutory specification a Federal reservebank is a cooperative agency, in which the member banks,for common protection, pool about one-third of the moneypreviously held in their vaults.

If a member bank becomes inadvertently overloaned, sothat its money reserve is too low, it sells a portion of itsshortly maturing loans to this cooperative agency, theFederal reserve bank. The member bank is thereby keptin easy condition and enabled to render fullest service toits community without the disastrous interruptions hither-to suffered. The payment of the loans at maturity re-plenishes the money of the Federal reserve bank so thatlike service may be performed for other banks. If theoffering of loans for sale becomes too insistent, the Federalreserve bank imposes a check by advancing the rates itcharges. If the demand is extraordinary in one district,the Federal reserve banks of the other districts share theload. In this way the varying seasonal or local loads aredistributed over the broad base of the combined reservesof all the Federal reserve banks. The member banks arethus linked into a real system guided by the broad generalpolicies of the Federal Reserve Board, which are deter-mined not by local considerations but by a national andinternational view.

FEDERAL RESERVE NOTES.

To assure greatest power to help and consequently thegreatest general stability, it is necessary for the Federalreserve bank to avoid important drain upon its gold, whichis the final reserve money. This is accomplished by theuse of Federal reserve notes, which are in fact simply theFederal reserve bank's promises to pay money, indorsedby the Government. They serve every purpose of moneyin ordinary trade transactions.

The mechanical operation is simple. A member banksells loans to the Federal reserve bank, thereby establish-ing a deposit credit. Against this it withdraws Federal


188 FEDERAL BESERVE BULLETIN, AUGUST l, 1015,

reserve notes, thus receiving means to pay its debts. TheFederal reserve notes drift back anji are presented to theFederal reserve bank for redemption through deposit orotherwise. The means for their payment are provided bythe payment of maturing loans, which the Federal reservebank has bought. The process is in effect an exchange,through the instrumentality of the Federal reserve bank,of the promissory note of the member bank's customerwhich will not pass current for Federal reserve notes whichpass current. Such a currency appears only in responseto a commercial demand—a demand upon a member bankfor payment of money. When such bank notes are pre-sented for redemption to the Federal reserve bank, theyare paid and cease to exist just as paid checks cease toexist. The volume of such a currency automatically ad-justs itself to trade requirements, there is no redundancy,there is no scarcity, A currency famine is inconceivable.

ECONOMY OF ELASTIC CURRENCY.

The way in which the use of such a currency protectsthe gold reserve from dispersion, and introduces intomoney transactions the same element of economy as thecheck, may be illustrated by an extreme case: Assumethat a bank has deposits of $1,000,000 with $250,000 moneyreserve. Suppose it owed one depositor $300,000 whichhe had occasion to pay to another individual. If hesought to draw $300,000 of gold to make the payment, hewould ''break " the bank, that is, though perfectly solvent,the bank could not make good its promise to that depositorto pay his deposit in money on demand. If, however, heshould take a cashier's check for $300,000 and the one towhom he transferred it should return it to the issuing bankfor deposit, the transfer would not occasion the slightestdisturbance of the bank's money reserve. Federal reservenotes are in essence cashier's checks of the Federal reservebank in currency denominations. They perform theservice of transferring credit in the same economical wayas does a check, without disturbing the reserve. Pay-ments in money, hitherto, inevitably depleted the moneyreserve, and such drain could not proceed far withoutgravest financial disturbance.

ADVANTAGE OF UNIFIED SYSTEM.

A great tendency to uniformity of banking practice'throughout the country would obviously result if allbanks were parts of one great system. This would be ofsome incidental convenience, but is not vital. Thefundamentally important reason for unification is that thelarger the proportion of banking reserves centralized in areserve agency the higher the ratio of potential fortifica-tion of business to its total volume.

Only through the issue of Federal reserve notes canthere be any speedy or important increase in the totalvolume of our currency, which must meet the require-ments for the use of all banks, State and National, and therequirements for the use of all the people. In a crisis,when a vast volume of payments in money is required, the

amount of notes available for issue will be exactly in pro-portion to the amount of the gold reserve of the Federalreserve banks. To illustrate: $400,000,000 gold consti-tutes the required 40 per cent reserve against $1,000,000,000Federal reserve notes; $800,000,000 would provide a likeproportion of reserve against $2,000,000,000 Federal reservenotes. Clearly, to link all banks into one system, therebyincreasing correspondingly the gold reserve centralized inthe reserve-holding and note-issuing agency, would add tothe security of all banks, and, what is more vital, wouldgive proportionately greater insurance to the stability ofthe entire business activities of the whole people. Ifevery citizen were trained as a soldier, the potentialdefense would be the entire physical force of a nation. Ifonly one-fourth of the citizens were so trained, they mightfight with equal valor, but the power of defense would beonly one-fourth.

Some have contended that crises could be averted byincreasing the requirement of money reserves. For in-dividual banks to have gold reserves in large enoughproportion to be always adequate for all demands wouldresult in a tremendous restriction of commerce throughthe necessary reduction in loans. But we have found toour sorrow that only slight inadequacy of reserves hasinvolved incredible disaster. In the hands of an indi-vidual bank gold will pay debts only to its par value.Experience, however, has demonstrated the fact that thecredit of a great, strong reserve-holding agency will passcurrent instead of money, so that one dollar of gold inpossession of a Federal reserve bank is a basis for providinga member bank with means of settling two and a halfdollars of debt. In this lies the extraordinary powerwhich a Federal reserve bank has for fortifying its memberbanks. It might be said that as the mythical Antaeusrenewed his strength by touching Mother Earth, so amember bank renews its strength by "touching" theFederal reserve bank.

Under our past banking methods money in vault andbalances with other banks have constituted the bankingreserves. Under the Federal reserve system the chiefreserves of member banks will be the rediscountable pa-per in their portfolios, and the day will doubtless comewhen, as in other countries, the law will not specify anystated proportion of money reserves. Nonmember Statebanks can not safely operate thus, since they would haveno unfailing place of rediscount, the Federal reservebanks not being open to them even through the mediumof correspondent member banks. No reserve agency butone under Federal authority would have conferred uponit this magic power of converting one dollar of gold intomeans of paying two and a half dollars of debt. Theopportunity for financial life insurance through the forti-fication by a Federal reserve bank and the selfish desirefor profit, which is the one constant factor in all business,will be potent influences to induce State banks to becomemembers of the Federal reserve system. As the impor-tance and bearing of these factors become fully under-


AUGUST 1,1915. FEDEEAL RESEBVE BULLETIN. 189

stood, it seems reasonable to expect that a steadily in-creasing proportion of State banks will become constituentparts of a system which will steadily grow in strength andunification, its members exercising all functions incidentto banking; and it seems also true that State banks willultimately be influenced to such participation both byState authority and by public opinion as it becomes moreand more fully realized that the security and prosperityof the State's commerce will be thereby best attained.

It was a wonderful achievement to enact the Federalreserve act. Legislation under our form of government isnecessarily a series of compromises. It is no ground fordisapproval of the act that certain features have not beenas carefully worked out as in the laws of some States. Iftrue, that fact offers a great opportunity for perfecting aidfrom those skilled through State experience. The pointof paramount importance is that the Federal reserve acthas incorporated into our banking the fundamentally vitalprinciples of centralized reserves and credit currency.Benefits will inure incidentally to banks, but in largestsense will flow to general business in every State throughthe new and broader opportunities and through the addedsecurity. There is no proper ground for contention be-tween State banking departments and the Federal reservesystem. The fundamental purpose of both is to attainthe greatest security and prosperity of industry andcommerce.

THE WORK OF FEDERAL RESERVEBANKS.

Mr. D. Ct Wills, chairman of the board, Fed-eral Reserve Bank of Cleveland, delivered thefollowing address on June 2, 1915, at Lexing-ton, Ky.:

The officers and directors of the Federal Eeserve Bankof Cleveland have been more than pleased with the coop-eration received from the member banks in this district.In such a departure from the plan and methods underwhich we have been accustomed to operate, there wasbound to be some hesitation and inquiry. The bankingbusiness itself develops, in those who are charged with itsmanagement, a tendency not to accept new propositionsat their face value. This is proper. One of l ie strongestrecommendations in determining credit is that a businesshas been established and in existence for a considerablelength of time. In other words, it is a point in favor of anybusiness or proposition if it has been in existence longenough to prove its worth.

In view of this necessary attitude of bankers in theirdaily dealings with their customers, it is surprising thatthere has been so little antagonism or apathy toward thenew Federal reserve bank system. However, the Federalreserve bank act, while new in America, represents in itsfundamentals the experience of the ages applied to theneeds of this country, and its principles generally are thoseof scientific banking. The act is not perfect, but it has

been estimated by economists and practical bankers to befrom 75 to 90 per cent good. That being the case, it de-serves a thorough trial by those whom it was intended tobenefit.

Our attitude toward any proposition is usually measuredby our understanding and interest. To understand a mat-ter involves information, which information must beaccurate and complete, else there is misunderstanding.

Our interest has more sides to it, and may be selfish andshortsighted. In deciding- how much we are interestedor where our real interest lies, we may be mistaken andnarrow. Even with all the information at hand, we maynot recognize our true course; blessings and benefits fre-quently wear a disguise.

These observations are made to introduce a discussionto-day of the Federal reserve system with special referenceto its operation in district No. 4. Some bankers are con-cluding that the new system is inadequate and not appli-cable to conditions in this country, and especially not use-ful or beneficial to the particular banker offering the objec-tion. This criticism of the system is made, to some extentat least, in the home of its friends, or those who should beits friends. Those of us who have to do with the manage-ment of this bank realize that this criticism is sincere andhonest. We appreciate it is not wanton. Yet, we arejust as sure that it is bound to disappear when the under-standing is increased, and when it is shown that the newsystem is for the better interests of the banker as well asthe business man.

Now, what is the purpose of the Federal reserve act?,It contemplates in the membership of the Federal reservebanks all the well-managed banks in the United Statesdoing a commercial business. It was not intended as ahaven for a bank with the bulk of its deposits payable ondemand and the bulk of its assets-in permanent loans.Nor was it intended to furnish facilities to a bank whoseowners and managers were using the capital, as well as theamount intrusted to them by depositors, in the flotationof speculative enterprises, in which the owners and man-,agers are personally interested. It was not intended toplace its stamp of approval on banking methods that wouldinclude the making of loans to borrowers without obtainingaccurate and complete information on the financial condi-tion of* those borrowers, or the continuous renewal of thepaper of a large number of borrowers from year to year,without even attempting to ob'tain an occasional paymentand to insure the solvency of these borrowers and test theirability and willingness to pay.

Several stated objections to the system have come to ournotice, and the ones most frequently urged appear to be aBfollows:

1. Keserve balances now compulsory at the Federalreserve bank from its members do not bear interest, entail-ing a loss to member banks of revenue previously received.

2. The law and regulations are such that banks, espe-cially country banks and institutions in small towns, haveno eligible paper.


190 FEDERAL RESERVE BULLETIN. AUGUST l, 1915.

3. The intention to have member banks collect itemson themselves at par deprives these banks of an exchangeincome previously received without offsetting advantage.

4. The requirement that member banks obtain in writingstatements from all their important borrowers is a hardshipwhich may entail the loss of trade, and while practicablein larger centers can not be followed in the smaller centers.

Answering objection No. 1, as to interest on reserve de-posits.—The reduction of reserves from 25 per cent to 15per cent in reserve cities, and from 15 per cent to 12 percent in other communities, means that the additionalloanable funds will produce a revenue equal to, if notexceeding the amount of interest previously received onreserve balances with correspondents. This calculation isbased on the total amount of reserve balance required tobe carried in the Federal reserve bank at the end of thethree-year period. For instance, at the end of three yearsa bank with $100,000 on deposit will carry with this bank$5,000; 2£ per cent on this amount is $125. The reductionin reserve—3 per cent on $100,000—is $3,000; the intereston §2,000 at 5 per cent is $150.

The absolute ability to obtain currency in any emer-gency enables a bank under the new system to operatesafely without excess reserve. Heretofore, banks realizingthat in a crisis they might have to depend on their ownresources, carried excess reserve.

It should be noted that the 5 per cent reserve require-ment for savings and time deposits is an additional profit-producing feature of the new act intended to benefit

. especially the banker in the smaller community.The May circular issued by the National City Bank of

New York contains the following interesting paragraph onthe payment of interest on balances by a central reserveinstitution:

*' There is no dissent the world over, in scientific opinion,from the conclusion that a central institution which carriesthe final reserves of the country, and upon which the bank-ing system as a whole relies for ready cash, should not pay

. interest on deposits. The reason is that the payment ofinterest compels a bank to actively employ a larger pro-portion of its resources than is advisable under such respon-sibilities. On the other hand, the maintenance of largereserves by a central institution, together with the powerof note issue, enables the member banks to carry smallerreserves than otherwise would be safe, so that they actuallylose nothing in earning power by supporting a central in-stitution."

Answering objection No, 2, as to eligible paper.—Underdate of March 31,1915, the Federal Reserve Bank of Cleve-land sent to its members the following letter:

"Through correspondence and interviews, I have be-come convinced that a considerable number of bankers arestill under the impression that the only kind of papereligible for rediscount at the Federal reserve bank, is whatis known as 'business paper' given by a buyer to a seller

"In order that you may not be under any misapprehen-sion, I wish to assure you that the following kinds of notes

are eligible if conforming to the credit requirements of theFederal Reserve Board, provided the purpose of the loansis not permanent or speculative:

'(1) Single name paper of your own customers, whomay be tradesmen, manufacturers, jobbers, storekeepers,etc,

"(2) Single name paper of your farmer depositors."(3) Paper similar to above, but containing one or more

accommodation indorsements as additional security,"(4) Commercial paper as sold by note brokers,"(5) Business notes given by a buyer to a seller in set-

tlement of a commercial'operation.'(6) Accepted drafts drawn on a consignee by a shipper

of merchandise.!<(7) Notes secured by warehouse receipts for staple

agricultural products or other goods, wares, or merchandise."We can also purchase with the indorsement of member

banks: (a) Bankers' acceptances based on the importa-tion or exportation of goods, and (6) warrants of cities,towns, and communities, when conforming with CircularNo. 7 of the Federal Reserve Board."

This letter, in our opinion, states in a concrete way whatis possible under the broad interpretation of the act by theFederal Reserve Board. Surely any well-managed bankought to have sufficient eligible paper under one or all ofthese holdings to avail itself of the rediscounting facilitiesof the Federal reserve bank. A number of ways suggestthemselves for gradually increasing the amount of eligiblepaper; for instance, if a part of a borrower's loan is to payfor a permanent investment and part for a commercial,industrial, or agricultural current operation, the obligationcan be divided into two notes. Borrowers whose assetaare real estate, who have been carrying their loans for along period without payment, and who can liquidate theirobligations only through the sale of their real estate canbe induced and requested to place a lien on the propertyand pay off the obligation. While primarily renewals arenot recognized as strictly commercial paper, yet, under theruling of the Board, a note is prima facie a commercial oneif the quick assets of the borrower show a sufficient marginover his current liabilities; and in such case a renewal isacceptable, since there are commercial and industrialtransactions that require a longer period than ninety daysto finish the operation, and under certain conditions sixmonths might not be long enough for a farmer to raise andmarket a crop or finish the feeding, fattening, and disposingof his live stock. Why the law insists on liquid paper andthat loans must have a definite maturity was illustrated ashort time ago in our district. It was discovered that themanaging officer of a member bank had victimized hisbank almost to the extent of wiping out its entire surplus.The information became public, and a run started. Whenan attempt was made to realize or collect on a portion ofthe bank's assets it was found that 40 per cent of the loanswere drawn on demand and have been carried continuouslywithout asking for payments except aa borrowers offered topay, that time notes were nearly all drawn for long periods,


AUGUST 1,1915. FEDERAL KESERYE BULLETIN. 191

and that the paper of early maturities was inconsiderable.It was found, too, that not a single record was kept of theresponsibility of the borrowers, the information beingsolely in the hands of the cashier who had gone wrong.The directors, when questioned as to the responsibility ofcertain debtors, did not agree on the worth of any singleman and often did not know which Jones it was that drewthe note. The ability of that bank to cope with the emer-gency and protect the interests of its depositors and share-holders was at a minimum, and I am sure that banks inthat neighborhood will not hereafter require much explana-tion as to the necessity of having realizable assets to meetliabilities that are subject to demand and payment at anytime.

Answering objection No. 3, as to check collection andexchange charges.—The immediate effect of a bank's col-lecting at par checks drawn on itself is a loss of exchange.I am confident, however, that the country bank's portionof the benefits to be derived from a universal doing awaywith exchange and the collection of checks at cost willmore than offset this apparent immediate disadvantage.Having a check on Dry Ridge pass current in district No. 4,the same as a check on Cincinnati, Cleveland, or Pitts-burgh, will insure at least that no funds will be transferredout of the community to par centers, and concerns orindividuals that have been accustomed to intrust thesmaller and unprofitable portion of their business to thelocal bank and their larger and more remunerative tradeto a bank in a center in order to have their checks pass atpar may conclude to do the bulk of their business withlocal institutions.

Checks now settle 95 per cent of all obligations in thiscountry; but in developing its use as rapidly as we have—far more rapidly and extensively than in any other coun-try—many difficulties have been encountered, and manyevils and bad practices have arisen. Mr. McKay, perhapsthe foremost practical authority on this subject, sum-marized these evils as follows at the recent conference ofreserve city bankers:

"First. Excessive exchange charges."Second. Absorption of exchange charges by the col-

lecting banks."Third. Indirect routing of checks to avoid exchange

charges, chiefly caused by clearing-house rules governingexchange charges.

"Fourth. The maintenance of reserve balances withbanks for the sole purpose of getting items on which tocharge exchange.

"Fifth. The carrying of compensating balances withcollecting banks solely for the purpose of obtaining parterritory.

"Sixth. Paying interest on uncollected funds."Seventh. Paying checks drawn against uncollected

unds."Eighth. Padding of reserves with items in transit."The Federal reserve bank, too, will probably offer

another service to its member banks, which ought to

compensate for the loss of exchange on par checks. Oneof the Federal reserve banks has already announced to Usmembers that it has employed at its expense a committeeof experts for the purpose of inquiring into and analyzingthe statements and methods of a number of typical banksfor the purpose of ascertaining whether the revenues orprofits may be increased and the expenses and cost dimin-ished. The results of this investigation will probably beavailable to member banks throughout the whole system.If not, the Federal Reserve Bank of Cleveland will, Ithink, make a similar investigation for the benefit of itsown members.

Answering objection No. 4t as to statements of borrow-ers.—I think it is the experience of every banker that hiscustomers and depositors often cooperate with him to alarger extent than he estimated. I do not believe anyborrower who is entitled to credit will refrain from plac-ing in the hands of his banker information in order thatthe banker may determine the borrower's right to credit.The following paragraph is from a recent folder of theCredit Men's Association:

"Good credit in the markets of the world enables themerchant to add to his ability to do business. It giveshim the use of enlarged capital, thus enabling him to carrya more complete stock, increase his sales, and magnify hiaprofits. A merchant's capital is the sum of his net availableresources plus his credit. The giver of credit is a contribu-tor of capital and becomes, in a certain sense, a partner ofthe debtor and as such has a perfect right to .completeinformation of the debtor's condition at all times.

"Credit is given a merchant because of the confidencereposed in him. Requesting information when credit feasked is not a reflection on one's character, honesty, orbusiness ability but is done to secure information to enablebusiness to be conducted intelligently.

"A merchant who desires to serve his own best mterestsshoUld recognize that his most valuable possession apart fromhis actual assets, is a sound, substantial, and unquestionedreputation as a credit risk, and that, under the prevailingconditions and demands of business, the most effectiveand eminently the best way to prove his basis for credit isto be willing to submit a statement of his financialcondition."

In an interview with the president of an Ohio bank, mostof whose business is with farmers, we were informed a fewdays ago that he had encountered very little difficulty inobtaining written statements from those who were partiesto his loans. He stated that when the regulations of theFederal Reserve Board came out he recognized that theywere not only sound but workable and immediately beganthe education of his borrowers by requesting them tofurnish him with statements. He had received over 100statements, practically all of which confirmed his esti-mate of the worth of the borrowers. In one or twoinstances, however, he was surprised to find unrecordedmortgn£?s and borrowings in neighboring banks, of whichhe ktr;w nothing. The probable saving of loss in these


192 FEDERAL RESERVE BULLETIN. AUGUST 1,1915.

instances justified him, in his opinion, in obtaining thestatements. He also noted with satisfaction the coopera-tion given by the borrowers themselves, many of whom forthe first time had made an accurate schedule of theirassets and liabilities; in all cases he furnished a^opy of thestatement to them and requested that it be kept and usedagain by the borrowers for comparison when they filedanother statement at the next period. It eeems hardlypossible that the experience of this banker in a farmingdistrict is any different than the experience will be of anybanker who will sincerely and intelligently test thisrequirement.

While there is only part of the State of Kentucky be-longing to district No. 4, and while the amount of thecapital owned and reserve deposits received from thesebanks is relatively small compared with the States of Ohioand Pennsylvania, yet, according to our estimate of thesituation, the Federal Reserve Bank of Cleveland oughtto be particularly helpful to the banks of northern Ken-tucky. Our attention has been drawn to this district fora number of reasons. It is farthest away from the locationof the bank, and has problems and difficulties that differfrom those of the northern banks. Kentucky, too, is wellrepresented on our board of directors in the persons ofSenator Combs and Mr. Patrick, and I have never yet seena man from Kentucky who did not seek the advancementof his State and call attention to its virtues and possi-bilities. Our Kentucky directors are no exception. TheState of Kentucky owns 18 per cent of the capital stock ofthis bank and is represented in 3 per cent of its deposits,while of the $700,000 loaned to member banks, $315,000 isloaned to banks in Kentucky. This indicates the willing-ness of the Federal Reserve Bank of Cleveland to furnishfacilities for the special condition existing at this time inthis part of the district.

In order that the system may be as fully a success as theframers of the act intended, and in order to mobilize goldreserves of sufficient size to protect the credit of this countryagainst any emergency, it is essential that State banksbecome members. The regulations of the Federal ReserveBoard on tho admission of State banks will shortly beissued. I have seen the tentative circular, and the require-ments are going to be so liberal that every bank shouldgive the matter prompt consideration; in my opinion theway has been opened for all well-managed commercialState banks to join. The great benefits to be derived byall banks from having the majority of the banks of the coun-try in the system justify the liberal terms to be offered theState banks. Their joining will be hastened by a work ofindorsement from the banks already in the system.

ESTABLISHMENT OF INTRADISTRICTCLEARANCE SYSTEM.

On July 9 the Federal Reserve Board trans-mitted to the Federal reserve banks the follow-ing letter of inquiry regarding the status ofthe intradistrict clearance system, alreadyestablished by the several banks, as set forthin the Federal Reserve Bulletin for May, 1915(pp. 6-9):

The Federal Reserve Board desires to pre-pare for the August 1 Bulletin a brief state-ment of the progress which has been madeunder the voluntary clearing plan in the va-rious districts, so as to show, say, as of July 16ta 20, the situation in the various districts. Inorder to assist us in formulating data, we shallbe glad if you will respond to the followingquestions:

1. Number of banks which have come in,2. Percentage of capital in your bank repre,-

sented by the assenting banks.3. What is the average number of items

cleared daily ?4. What do you estimate cost directly

chargeable to this work ?5. Percentage of clearing banks showing

overdrafts (exhaustion of balances).6. Number of men employed in your transit

department.7. How is the voluntary plan working, in

your estimation %8. Wu%it be necessary or desirable that the

board issue a mandatory order before the workcan be successfully carried through ?

9. Is the clearing of checks accepted as avaluable service by your members, or is therestill much opposition to it ?

10. Is it gaining in friends ?The answers to the first six questions con-

tained in the list are susceptible of tabulation,and the substance of them is set forth asfollows:


AUGUST 1,1015. FEDERAL RESEHVE BULLETIN. 193

Questions sent to and answers received from each Federal reserve bank regarding the working of the intradistrict clearance system.

Question.

1. What number ofbanks have comein?

2. What percentage ofcapital in the Fed-eral reserve bankis represented bythe assent ingbanks?

3. What is the average

cleared daily?4. What do you esti-

mate cost directlychargeable to thiswork?

•5 ^ V*hat TDercentaco ofclearing banks showoverdrafts?

G Givo numb or of menemployed in yourtransit d e p a r t -ment. . • . ;

. Question.

1 "Whiit TinTnbcr ofbanks have comein?

'2 What nercMitape ofcapital in the Fed-eral reserve bankis represented bythe a s sen t ingbanks?

3. What is the average.number of itemscleared daily?

4. What do vou esti-mate cost directlychargeable lo thiswork?

v. vviuib percentage oiclearing banksshow overdrafts?

6. Give number of menemployed in yourtransit depart-ment.

Boston.

50

27...

1,200

2 clerks whose sal-aries aggregateSl,500p.a. Thisis exclusive ofprinting, station-ery, machines,and overhead ex-pense.

o

Chicago.

1 ' •

Estimated cost$30,000 p. a., esti-mated on thebasis of § cent peritem for Chicagobanks, 1 cent peritem for subur-ban banks, and1§ cents per itemfor out of townbanks.

7 regularly and 4extra about 2hours each after-noon.

New York.

115

4,976

About 59,100, basedupon an esti-mated daily costof $25.30. Thisestimate includesonly salaries ofclerks working di-rectly upon col-lections, a l s opostage and sta-tionery, but isexclusive of thecost of superin-tendence, rent, orother overheadcharges.

195

c

St. Louis.

366

90

•

Estimated cost515,000 p. a., ex-clusive of admin-istration expense.

4g«

14

Philadelphia.

125

46.7

4,9771 ,

Salaries, S5,SS0 p .a.;postage,Sl,950p. a.; total, ?7,S30p. a., exclusive ofstationery, thecost of machines,and of erectingand equippingspecial gallery toaccommodate de-partment. ,

7.2

6 men exclusively,with some assist-ance from filingdepartment andofiice boys.

Minneapolis.

106..!

44

Salary of transitman, 32,000 p. a.,who also hascharge of themail. Estimatedoes not includecost of printing,stationery, etc.

1 overdraft

1; see answer toquestion 4.

Cleveland.

120

55

1,713

Estimated yearlyd i r e c t c o s t35,815.38; averagopostage per day,S4.43.

0.5

4, and occasionalservices of 3 oth-ers.

Kansas City.

951

100

5,714

Estimated cost$24,000 p . a., in-cluding pro-ratarent, postage, de-preciation, etc.

2

11; some perform-ing duties out-side the transitdepartment.

Richmond.

S9

17 45

3,070

Salaries, ?2,SS0 p.a.; postage, S900p. a.; stationery,$300 p. a.; total,84,0$0 p . a., ex-clusis*e of book-keeping and over-head charges.

83

4

Dallas.

93

31

1.156, includingitems on Dallaspassed throughthe Dallas clear-ing-house e x -changes.

32,256 p. a., viz:Salary managertransit depart-m e n t , Sl,500;clerk, 3600; sta-tionery, 372 (esti-mated) ; excesspostage, SS4.,

About 3

2 men; see alsoanswer to ques-tion 4. .

Atlanta.

71.

44.3.

About 195.*

Estimated totalcost, includingsalaries, postage,and percentage ofrent, light, etc.,Sl,200p.a.

1 bank.*

Two-thirds of timeof i man.

San Francisco.

110.

40.

No data.*

No data.6

No data.5

No data.*

i High, 6,517 on July 7; low, 2,735 on June 15.* All outside of Atlanta.a On a basis of 7 days' operations.* Covered by New York exchange.* System to commence operations Aug. 1.* On a basis of 4 days' operations.


194 FEDERAL RESERVE BULLETIN. ACGUST 1, 1915.

Not all the banks have submitted full re-sponses to questions 7, S, 9, and 10, and somewhile replying to these questions, have notfurnished a definite expression of opinion.The substance of the answers can, however,be briefly stated. On the question of amandatory system as opposed to a non-mandatory, reports show that 11 districts nowhave nonmandatory, and one a mandatorysystem of check collections. Of those districtswhose S3Tstem is not now mandatory, threedistinctly state that they believe the intro-duction of a mandatory system would beundesirable; while seven express themselves,in some cases with more or less qualification,in favor of the introduction of a mandatorysystem, most of the banks regarding this asnecessary if the plan is to become fully effective.Among the expressions on this subject arethe following, each paragraph being the ex-pression of one bank:

" I t will certainly be necessary for the Boardto issue a mandatory order before even thepresent plan would be of sufficient scope toreach a moderate point of efficiemrf. Manyof the banks have indicated to us that theywould not come in unless compelled to doso, and would not accept the mandatoryorder kindly by reason of the great loss ofexchange/'

"We think it will be necessary" (i. e., for theBoard to issue a mandatory order before thework can be successfully carried through)"before all the banks join the system, butworking along the present plan, I believethat we can in time secure at least 50 per centof them,"t "* * * it would seem that, if the systemis to be a success, the Board will have to issuea mandatory order requiring all memberbanks to clear through the Federal reservebanks of their respective districts. It will beimpossible for Federal reserve banks to enterinto relations with each other for the clearingof checks on their respective members untuall the members of oacn district are membersof the clearing system of that particular

. district."a* * * t|10 v o)u ntary collection system

should bo given about six months more tooperate before deciding as to whether it issuccessful or not. Banks which have joinedit are now advertising the fact that checks on

them are par in —. We believe this actionwill oblige other banks to join the collectionsystem, and that economic pressure will comefrom depositors of the banks and from themerchants who now have to pay exchangecharges which will influence more banks toassent to the collection system."

"A great many banks have written us thatunder no circumstances would they join thesystem until it is made compulsory, and allbanks come in at the same time. It wouldappear, therefore, that it will be necessarythat the Board issue a mandatory orderbefore the work could be carried throughsuccessfully."

" I feel that only in the presence of a manda-tory regulation will we be able successfully togive effect to the plan."

"I t may be necessary, and, in my opinion,will likely be desirable, that the Board make theplan compulsory before success is assured."

"We believe that it will be necessary that theBoard issue a mandatory order compellingbanks to join the check-collection system inorder that the member banks may realize thefull benefit of the arrangement. Memberbanks generally expected to be compelled tojoin the check-collection system, and when thevoluntary plan was offered a large majoritypreferred to defer joining until they couldobserve the effects of the operation of the planwith such banks as decided to join. We be-lieve that if the plan were made mandatory itwould in a reasonable time commend itself toour member banks, but for the present the fearof the necessity of maintaining excess balances,on which no interest is allowed, and the disin-clination -to relinquish exchange profits detersmany country banks from entering the volun-tary system." .

"We have been, and are, of the decided opin-ion that the Federal Reserve Board should issuea mandatory order compelling all member banksin each district to become clearing members,thus extending the facilities for the clearanceof checks to the entire field of industrial andcommercial activities, as we believe was con-templated by the Congress in the enactment ofthe Federal reserve act."

The following is a list of the various memberbanks which have joined the intradistrictclearance system. The system did not takeeffect at the same date in all districts, and ithas not been practicable to correct the lists upto the same date for all. All banks includedin the several districts up to July 1, 1915, are,



however, listed below, while in some districtsadditional banks have joined the system, not-withstanding that their names do not appearin the attached list, and a very few of thoselisted may have withdrawn. The several Statesin each district have been arranged alpha-betically, and the cities in which the clearingbanks are located have then been alphabet-ically grouped. Where more than one bank ina given city or town is a member of the system,such banks are then grouped alphabetically.The latest returns show that the clearing systemcomprises a total of 2,373 banks, taking alldistricts as an aggregate*List of member tanks which have joined ike collection system

of the Federal reserve banks.DISTRICT No. 1.

City or town.

CONNECTICUT.

BridgeportClintonDanburyGreenwichNew HavenSuffield

MAINE.

Boothbay Harbor

MASSACHUSETTS.

AttleboroBoston

DoDoDo ...DoDoDoDo

DoDo

ChelseaGloucesterHaverhillHudsonHolyokeHopkinton

Do " "MOlbury....New BedfordNewburyportNorthboroughNorwoodPlymouth

^ DoWareWestfieldWorcester

Do

NEW HAMPSHIRE.

ClaremontManchester

Do IPortsmouth r

Name of bank.

First Bridgeport National....Clinton NationalDanbury NationalGreenwich NationalFirst National

do

First National

First National

Commercial NationalFirst NationalFourth-Atlantic NationalMerchants NationalNational Union NationalOld Boston NationalPeoples National Bank -of

Roxbury.Second NationalWobster & Atlas National....Broadway NationalCape Ann NationalFirst NationalHudson NationalPark NationalHopkinton NationalManufactures NationalFirst NationalPeoples NationalMillbury NationalMechanics NationalMerchants NationalNorthborough NationalNorwood NationalPlymouth National - - - •Mount Wollaston National.. .Chicopee NationalSpringfield NationalWare National •-.-•.-Hampden NationalMerchants NationalWorcester National

Claremont NationalAmoskeag NationalMerchants NationalFirst National

Transitnumber.

51-3251-27051-12551-146

51-951-235

52-168

53-2845-325-565-395-125-135-25-3

5-107

5-175-25

53-22253-25453-16753-45153-14153-54853-86

53-32453-32353-52053-69

53-31153-58453-58753-36153-21453-95

53-10453-40553-288

53-453-1

54-7354-654-3

54-47

List of member banks that have joined the collection systemof the Federal reserve banks—Continued.

DISTRICT No. 1.—Continued.

City or town.

RHODE ISLAND.

Providence

VERMONT.

Bellows Falls

MontpelierNorth BonnLngton.St. JohnsburyWindsor

Name of bank.

National Exchange.

National Bank of BellowsFalls.

First National..do.

Merchants National.State National

Transitnumber.

DISTRICT No. 2.

NEW JEESET.

AllentownArlingtonBernardsviUe....Blairs townBound Brook... .ClintonEdgewaterEngHshtownFlemingtonFreehold

CarfieldHackensackHoboken

DoHopeLvndhurstManasquanMatawanNewark

DoLo

New Brunswick..OrangePaterson

DoDo

PlainfieldDo

RidgefieldPark..RidgewoodSomerville

DoTenaflyWestfield

West Orange..

NEW YORK*

AlbanyDoDo

AmsterdamBay ShoreBronxvilleBrooklyn

Do ,DoDoDo

BuffaloDoDo

Caienovia ,DundeeElmira ,

DoFarRockaway.,

Glens FallsDo

GranviUeGreenwich

Farmers National ,The First NationalBernarclsvillc NationalFirst NationalBound Brook National,Clinton NationalFirst National

doFlemington NationalThe National Freehold Bank-

ing Co.First NationalPeoples NationalFirst NationalSecond NationalFirst National

. .do.Manasqtian NationalFarmers & Merchants NationalManufacturers NationalNational Newark Banking Co.National StateNational Bank of New Jersey.Second NationalFirst NationalPaterson NationalSecond NationalCity NationalThe First NationalFirst National

. d o .do

Secorfd NationalFirst NationalThe National Bank of West-

field.First National

First NationalNational CommercialNew York State NationalFirst National

.do.Gramatan NationalFirst NationalGreenpoint NationalNassau NationalNational CityPeoples National.Central NationalMarine NationalThird NationalCazenovia NationalDundee NationalSecond NationalMerchants NationalNational Bank of Far Rocka*

way.First NationalNational Bank oi Glens Falls..Washington County National,First National

57-2

58-60

58-4358-11358-3858-84

55-36755-36855-37455-36555-33555-36355-35155-30255-350

55-34055-39555-21655-10855-11055-15955-46955-41155-41255-855-155-255-17955-17155-5555-6055-5655-19355-19155-43355-29455-31255-31455-44655-2S2

55-150

29-829-720-1

50-13550-90350-668

1-3561-3S91-1181-3521-58510-2410-210-6

50-68550-60750-10850-1101-436

50-25650-25550-48450-748

2098—15 4


196 FEDERAL BESEBVE BULLETIN. AUGUST I , 1915.

List of member banks which have joined the collection systemof the Federal reserve banks—Continued.

DISTRICT Mo. 2—Continued,

City or town.

NEW TORE—continued.

Hudson Falls.Ithaca

DoJamaicaLarchmontLockportNew Burgh....Hew York . . . .

Do

DoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDoDo

NyackOgdensburg.Osslning

Do_ Do ,PerryPort Chester..,Port Jefferson..RidgewoodRochester ,RyeSchenectady,..

Do ,Stapleton ,Syracuse

DoTroyTuckahoeWestfieldWhite Plains..

Deimar.Seaford.

Name of bant.

Peoples NationalFirrst NationalTompkins County National...First NationalLarchmont NationalN ational Exchange . . . . . . . .Highland National -American Exchange National.Bank of New York National

Banking Association.Battery Park NationalBronx NationalChase NationalChatham & Pbenix National..Chemical National -Citizens Central NationalCoal & Iron NationalEast River NationalFifth NationalFiist National . - .Garfield NationalGotham NationalHanover NationalImporters *fc Traders National.Irving NationalLiberty NationalLincoln NationalMarket & Fulton National....Mechanics «fc Metals National..Merchants Exchange National.Merchants NationalNational Bank of Commerce...National Butchers <fc Drovers..National CityNational ParkNow York County National...Seaboard NationalSecond NationalUnion Exchange National....Nyack NationalNational Bank of Ogdensburg.Osslning NationalFiist National

dodo

. . . d oRMgewood NationalTraders NationalR3 e NationalUnion NationalMohawk NationalRichmond Borough National.First NationalSalt Springs NationalManufacurers NationalFirst NationalNational Bank of Westfield...First National

Transitnumber.

DISTRICT No. 3.

NEW JERSEY.

Atlantic City.:BerlinBlackwoodBordentownCamden

DoClaytonHaddon HeightsMillville.....MoorestownMount HollyPedricktown

Fin t National.-io

Boa rdwalk NationalBerlin NationalFir? t National

.do.Can iden NationalFirst NationalClapton NationalHaldon Heights National.,,Mechanics NationalMoorestown National ,Union NationalFirst National

50-43550-26250-2611-431

50-77650-22350-174

1-211-1

1-2321-4161-741-301-121-361-991-591-821-S51-81

1-2441-331-531-671-911-801-42

1-131-3

1-231-151-8

1-541-711-851-63

1-10050-45750-24050-31950-31850-46350-28150-555

1-43750-8

50-84550-9050-881-45450-3650-3450-64

50-94150-52350-234

62-4862-35

55-14655-37355-37655-33355-8855-86

55-47255-40055-23855-34555-29055-424

List of member banks which have joined the collection systemof the Federal reserve blanks—Continued.

DISTRICT No. 3—Continued.

City or town.

NEW JERSET—continued.

PitmanPoint Pleasant.,PortNorrisPrincetonSwedesboroToms RiverWilliamstown...

PENNSYLVANIA.

Alientown,DoDo

AltoonaDo

Blue Ball ,BradfordCantonCatasauquaChambersburg,,

Clarks Summit.Coatesville

Collegeville.-,

SanvSicDanvilleDo

DuncannonDo

DunmoreEast BerlinFawn GroveFreelandGirardvilleGlensideHamburgHazletonHoney BrookHowardHuntingdonLancaster

DoLandisvMeLansdaleLehightonLemastersLewistownLiverpoolMcConnellsburg..MariettaMillersvIUeMiltonMount Jewett....Mount JoyMount UnionMountvilleNazarethNorristownNorth WalesPhiladelphia

Do...DoDoDoDo,..DoDoDoDo.Do.,Do.,Do.,Do..Do..

Do..Do.,Do.,Do.,Do..

Name of bank.

Pitman NationalOcean County National.First National

do.Swedesboro National..First National. . . .do

Allentown National,Merchants National.Second NationalFirst NationalSecond NationalBlue Ball National..Bradford National..Farmers National...National Bank of Catasauqua..National Bank of Chambers-

burg.Abington NationalNational Bank of Chester Val-

Coflegeville NationalCoplay National ,Danville National ,First National ,Duncannon NationalPeoples NationalFirstNationalEast Berlin National ,FirstNational

doFirstNationalGlenside National.FirstNational.. . .. . . .do

... . .do

... . .do. . . .doNorthern NationalPeoples National,FirstNational <. . . .do. . . .doLemasters National.Citizens NationalFirstNational

do.Exchange NationalMillersvIUe National... .Milton NationalMount Jewett National.FirstNational

do..Mountville NationalNazareth NationalPeoples NationalNorth Wales NationalBank of North AmericaCentennial NationalCentral National ,Corn Exchange NationalEighth NationalFarmers & Mechanics NationalFirst NationalFourth Street NationalFranklin NationalGirard NationalKensington NationalManufacturers NationalMarket Street NationalNational Bank of GermantownNational Bank of the Northern

Liberties.National SecurityNinth National..Northern NationalNorthwestern NationalPenn NationalPhiladelphia National

Transitnumber.

55-42855-43055-45755-30555-44555-35355-454

60-12860-13160-12960-11660-118

60-109160-36660-96160-72660-427

60-143060-452

60-111560-112160-57360-57460-97860-97960-313

60-104060-115760-652

60-117160-117460-89560-233

60-119260-119860-61660-14360-144

60-121360-80160-717

60-122060-536

60-122660-105160-915

60-125360-581

60-126260-90760-819

60-126560-76560-219

60-12843-2

3-293-263-183-253-3

3-203-393-443-133-8

3-113-403-533-6

3-2S3-333-433-363-93-1


AUGUST 1,1915. FEDEEAL EESEBVB BULLETIN. 197

List of'member banks which have joined the collection systemof the Federal reserve banks—Continued.


City or town.

PENNSYLVANIA—COntd.

PhiladelphiaDo.. .DoDoDoDoDoDoDo

FhoenbcvillePottsville

DoQuakertownRalstonReading..Scranton .

Do. . .Do ; . . . .

Selins GroveShippensburgTamaquaTerre HillTremontTroy

WatsontownWaynesboro.

WellsboroWest Chester

D o . . . . . . . . . . .

WilliamsportDo

YorkDoDo

Name of bank.

Quaker City NationalSixth NationalSouthwark NationalSouthwestern NationalTenth NationalTextile NationalThird NationalTradesmens NationalUnion National —National Bank of Phoenixville.Miners NationalPennsylvania National.Quakertown NationalFirst National.National UnionFirst NationalThird NationalTraders NationalFanners NationalPeoples NationalFirst NationalTerre Hill NationalTremont NationalGrange National Bank of Brad-

ford County.Farmers NationalCitizens NationalPeoples National. •First National.

doNational Bank of C h e s t e r

County-First National.. .West Branch NationalCentral NationalFirst NationalYork National

Transitnumber.

3-423-233-7

3-373-343-453-213-143-19

60-46560-24760-24860-770

60-131160-3660-160-460-8

60-98160-81260-197

60-136760-917

60-1005

60-93960-60260-60060-83060-4396O-43S

60-19760-19660-16560-15560-153

KENTUCKY.

Brooksville ,Covington..GeorgetownLudlow ,Maysville

DoMount Sterling

O ; ; ; ; ; ;

NewportPikevilleRussell.....SomersetWinchester

OHIO.

ArcanumBaltimore...BellevueBlanchester.Bluflton...Bucyrua...Cardington.CelinaCincinnati.

DoDoDoDoDo.DoDo

CirclevilleCleveland

Do

DISTRICT No. 4.

First NationalCitizens NationalGeorgetown NationalFirst NationalBank of Maysville, National

Banking Association.State NationalMount Sterling NationalTraders NationalMontgomery NationalGerman NationalFirst National

..do..

..do.Clark County National.,

First National. . . .do

. . / . .dododo

Second NationalFirst National.

doAtlas National..Citizens National..-Fifty-third NationalFirst NationalFourth NationalGerman NationalMarket National . . -Second NationalFirst NationalBank of Commerce, N. A..Central National

73-38273-18

73-13973-14573-100

73-10273-14973-15073-15173-27

73-26S73-5SS73-14273-90

56-70$56-88156-47256-64256-623

S56-71056-54413-3513-2913-3113-113-4

13-2413-3613-2

56-3956-36-4

List of member banks which have joined (he collection system


City or town.

OHIO—continued.

ClevelandDoDoDoDo

ColumbusDoDoDoDoDoDoDo

CoshoctonDaytonDefianceDillonvaleElyriaFostoriaFranklinFremontGeorgetownGreenwichHamilton

DoHiUsboro

DoLewis villeLondonLorainMariettaMassillonMilfordMount Sterl ing-Mount Vernon...

DoNew ConcordNorwood

DoPlquaPowhatan Point.RavennaSandusky

DoSpringfield

DoSpring Valley....

Toledo.DoDo

YVadsworth..Wapakoneta.Wefisville....Youngstown.

Do

PENNSYLVANIA.

Beaver FallsBellevueBraddockBridgeville........ButlerCambridge Springs.EllwoodCityErie

DoLigonierMunhalLNew Brighton..-NewcastlePittsburgh

DoDo.Do.Do.Do.Do-Do.Do.

Name of bank.

Cleveland NationalFirst NationalNational City —National CommercialUnion NationalCentral NationalCity NationalCommercial NationalHayden-Clinton NationalHuntington NationalNational Bank of Commerce...New First NationalOhio NationalCoshocton NationalCity NationalMerchants NationalFirst NationalThe National Bank of Elyria..Union NationalFranklin NationalFirst National

dododo

Second NationalFarmers and Traders NationalMerchants NationalFirst NationalMadison NationalNational Bank of Commerce...Citizens NationalMerchants NationalMilford NationalFirst National

doNew Knox NationalFirst National

doNorwood NationalCitizens NationalFirst NationalRavenna NationalCommercial NationalThird National ExchangeFanners NationalFirst NationalSpring Valley NationalTiffin NationalFirst NationalNorthern NationalSecond NationalFirst NationalAuglaize NationalPeoples National.....Commercial NationalFirst National -

Farmers NationalCitizens NationalBraddock National...First NationalMerchants National..Springs NationalPeoples National.First National...,Marine National.First National-..

doUnion National.

Bank oYpittsburghVN. AColumbia NationaLCommercial NationaLDiamond NationalDuquesne NationalExchange National....Farmers Deposit NationaLFirst-Second NationalKeystone National ,

Transitnumber.

6-56-106-126-8

6-1525-16

25-325-525-725-2

25-1225-425-1

56-27956-28

56-35856-94356-19756-28556-57256-27256-67356-79056-9156-92

56-50156-500

56-101956-53856-11056-24956-21356-71256-74056-29856-297

56-106956-18056-18156-219

56-111656-46456-16456-16256-673

56-8156-116256-253

56-156-456-2

56-5565G-46156-34956-4656-44

60-42260-64860-26760-93060-24460-97560-774

60-7160-73

60-96660-126660-51960-192

8-18-228-248-198-208-2

8-118-9

8-27


198 FEDERAL RESERVE BULLETIK. AUGUST l t 1915.



City or town.

PENNSYLVANIA—<JOntd.

PittsburghDoDoDo

DoDoDo

PlumvilleTarentumTitusvilleTurtle CreekUniontownWashington

Name of bank.

Mellon NationalMonongahela NationalPeople's NationalSecond National Bank of Alle-

gheny.Third NationalUnion NationalWestern NationalFirst NationalPeoples National.Second NationalFirst National.Second NationalCitizens National

Transitnumber.

8-268-218-138-83

8-10S-128-23

60-1306G0-58760-51160-73560-68360-294

DISTRICT No. 5.

DISTRICT OF COLUMBIA.

Washington-DoDo

MARYLAND.

AnnapolisBaltimore

DoDoDoDo,DoDo,DoDoDo.

CatonsvilleCumberlandFrostburgHagerstownHancockOaklandSykesyille

NORTH CAROLINA.

GoldsboroGreenvilleLouisburg

DoOxfordSalisburyStatesviileWilmington '.WilsonWinston-Salem

Do

SOUTH CAROLINA.

AikenAndersonBennettsville.Bishopvil le. . .Charleston

DoColumbia

DoDoDoDo

ConwayFlorenceGreenvilleLaurensLexingtonNewberryOrangeburg.. .Rock HillSpartanburg..

Columbia National.,District National...Franklin National..

Farmers National ,Farmers & Merchants National.First NationalMerchants-Mechanics National,National Bank ofNational Bank of Commerce..,National ExchangeNational Marine : . . .Old Town NationalSecond NationalWestern NationalFirst NationalThird NationalCitizens NationalPeoples NationalFirst NationalGarrett National ,Sykesville National ,

National Bank of.do.

Farmers NationalFirst National

do.do.

Commercial National..Murchison National...First NationalMerchants National...Peoples National

First NationalCitizens NationalPlanters NationalFirst NationalGermania NationalPeoples NationalNational Loan & Exchange.National StatePalmetto NationalPeoples NationalUnion NationalPeoples NationalFirst NationalFourth NationalEnterprise NationalHome NationalNational Bank ofEdisto NationalNational UnionCentral National

15-115-1215-84

65-357-7

7-147-117-17-4

7-167-107-177-6

7-1365-148

65-265-5365-21

65-11965-97

65-128

66-12366-15366-51166-22366-17266-90

66-14066-2

66-11166-5066-48

67-13667-60

67-15567-39167-1667-3

67-2667-2467-2567-3067-28

67-45467-8067-51

67-11767-26467-10967-9267-7167-35



City or town.

SOUTH CAROLINA—COntd.

SpartanburgSumter

DoWaterboro

VIRGINIA,

AlexandriaDo

Broadway . . . . . . . . . . .CharlottesvilleFairfaxFredericksburgGate CityLeesburgLurayLyncnburg

DoDo

Manassas . . . . . . . . . . . . .PetersburgRichmond.

DoDoDoDoDoDoDo

RoanokeDoDo

WarrentonDo

Waynesb oro

WEST VIRGINIA.

BluefieldCharleston...Martinsburg.St. MarysWest Union..

Name of bank.

First NationalCity NationalNational Bank of SumterFirst National

Alexandria National..Citizens NationalFirst NationalNational Bank of

do.Planters NationalFirst National...Peoples NationalPage Valley National.,First NationalLynchburg National..Peoples NationalNational Bank ofVirginia NationalAmerican National....Broadway National...Central NationalFirst NationalManchester National. -Merchants NationalNational State & City.Planters NationalAmerican NationalFirst NationalNational ExchangePeoples National . .Fauquier NationalFirst National

First NationalCharleston National..Citizens NationalFirst National

do

Transitnumber.

67-3367-6567-54

67-195

68-10968-10868-32168-13168-35668-13668-26968-21968-23768-7268-7368-75

68-24068-856S-6

68-3068-25*68-l

68-11368-468-568-2

68-6268-5468-56

68-22668-22568-227

69-3669-68

69-17769-217

DISTRICT No. 6.

ALABAMA.

ArmistnnAthensAtraoreBirmingham

DoLuverneMobile

Prattville

TalladegaDo

FLORIDA.

Pensacola . , ,

GEORGIA.

AtlantaDoDoDoDoDo

CordeleCorneliaDawsonDublin

Do

First Nationaldododo

Traders NationalFirst National.Bank of Mobile, National Bank-

ing Association.First National

doIsbell NationalTalladega National

National Bank of Commerce...Peoples National

American NationalAtlanta NationalFourth NationalFulton NationalLowry NationalThlrdNationalCordele National •First NationalDawson NationalCity NationalFirst National


AUGUST 1,1915. FEDERAL EESERVE BULLETIN. 199

List of member hanks which have joined the collection systemof the Federal reserve banks—Continued.


City or town.

GEOEGIA—continued.

Fort Valley..Macon. . . . . . .

DoDoDo

Milledgeville.QuitmanSandersville..SpartaSylvester.....ValdostaSavannah....

Do

LOUISIANA.

New Orleans-Do

TENNESSEE,

CentervilleDo

Chattanooga...DoDo

ColumbiaEtowahFranklinGallatin..."I;...Johnson City...

DoKnoxvffle

DoDo

Lawrenceburg..Lebanon

BoMurfreesboro. - -Nashville

DoDoDoDo

Shelbyville,....Springfield^Woodbury

ILLINOIS.

Bloomington.Chicago ,

Do

Do-Do.Do.Do.Do.

Do . . . .Do . . . .Do . . . .Do . . . .Do . . . .Do . . . .Do. . . .

Clifton....DeLand. .Divemon.Findlay...GalenaHarvey. . .Joliet

Do . . . .

Name of bank.

First NationalAmerican NationalCitizens NationalFourth NationalMacon NationalFirst National

do.do..,.do....do.,.do..

National Bank of Savannah..Merchants National

Hlbernia NationalNew Orleans National..

First NationalCitizens National

do.First NationalHamilton NationalPhoenix NationalFirst NationalNational Bank of FranklinPeoples NationalCity NationalTJnaka NationalHolston NationalThird NationalUnion NationalFirst NationalAmerican NationalLebanon NationalFirst NationalAmerican NationalBroadway NationalCumberland Valley National..Fourth and First NationalTennessee Hermitage NationalPeoples NationalFirst NationalPeoples NationalFirst National

Transitnumber.

DISTRICT No. 7.

State NationalCalumet NationalCentral Trust Company of Illi-

nois.Continental & Commercial Na-

tional.Corn Exchange NationalDrovers NationalFirstNationalFirst National Bank of Engle-

wood.Fort D earborn NationalLive Stock Exchange National.National Bank of the Republic.National CityNational ProduceRavenswood NationalWashington Park NationalFirstNational

do...do..do.

Galena National.FirstNational....

doJoliet National...

70-1052-1052-23

2-3

2-52-103

2-12-109

2-122-1472-132-222-59

2*2062-144

70-101370-105970-125S70-129770-42070-309

70-5970-61



City or town.

ILLTNOIS—continued.

Kansas . . .LewistownMattoonMilfordMoweaquaNeoga.NewmanPeoria

DoDo

RockfordDoDo

StewardSycamoreWarren

INDIANA.

AndersonAuroraBoswellBrazilBrookvilleColumbia CityConners villeCovingtonFort WayneGreenwoodHammond

DoKirklinKokomoLafayetteLa PorteLawrenceburgLogansportMartins villePeruRushville

DoShelbyvilleTipton..Va

IOWA.

Armstrong...-,BurlingtonClarionClintonCorningEstervfileGalvaGowrie ,Independence..Mapleton ,NewtonPetersonRenwick . . .Sioux City

DoDo

VilliscaWaterlooWaverlyWebster City..

MICHIGAN.

AlpenaDetroit

DoDo

Grand RapidsKalamazoo . . . .MorenciPort HuronReed CitySaginawVassar

Name of bank. Transitnumber.

Farmers NationalLewistown National ,National Bank of Mattoon ,First National. . . .doNeoga NationalNewman NationalCentral NationalCommercial German National.First NationalForest City NationalThird NationalWinnebajro NationalFirst NationalSycamore National

mal Farmers

National Exchange.FirstNational

do.RIddcll NationalNational Brookville.FirstNational

do..do.

German American National.FirstNationalCitizens German National...FirstNational

do.Citizens NationalMerchants NationalFirst NationalDearborn NationalFirst NationalCitizens NationalFirstNationalRush County National.Rushville NationalFarmers NationalCitizens NationalValparaiso National

FirstNational ,Merchants National.FirstNationalMerchants National.Farmers National...FirstNational

do.do.,.do...do.,.do....do....do..

Continental National....FirstNationalNorthwestern National.FirstNational. . . .do . .. . . .do. . . .do

Alpena NationalFirst and Old Detroit NationalMerchants NationalNational Bank of Commerce..Grand Rapids National City..Kalamazoo NationalFirstNationalFirst National ExchangeFirstNationalSecond NationalVassar National

70-68570-60270-20770-76S70-72070-S47

70-149170-970-170-1

70-4470-4070-39

70-160370-452

•70-763

71-7371-37471-62071-22271-46371-40571-26871-4S571-27

71-52071-S571-83

71-70471-139

71-0971-17971-39471-12571-36271-17271-35771-35671-20371-58771-276

72-90572^54

72-37772-47

72-44572-261

72-108172-72272-257

72-183372-20972-988

72-107141-6241-541-3

72-38772-31

72-27672-166

74-1229-1

9-279-2474-2

74-4574-39674-91

74-36974-22

74-375



List of member banks which have joined the collection systemof the Federal reserve banks—Continued,


City or totorn.

WISCONSIN,

KenoshaMadisonMilwaukee

DoDo

Monroe

RioWatertownWhite Water

Name of bank*

First NationalBank of WisconsinFirst NationalNational ExchangeWisconsin NationalFirst National

. . . . do

. . . . doWisconsin NationalFirst National

Transitnumber.

79-6579-5012-212-412-7

79-20679-24379-39479-12779-232

DISTRICT No. 8.

ARKANSAS.

Batesville -•BentonBentonville

DoBerryvilleCotton PlantDe QueenDeWittEureka SpringsFayetteville..

DoForrest CityFort Smith

Do .,DoDo

GravetteGreen ForestHopeHuntsviUeJonesboroJudsoniaLewisvilleMorrillton

gould

Pine BluffPrairie Grove.,,RogersSiloam Springs..SpringdaleStuttgart ,Texarkana ,Van Buren ,WaldronWalnut Ridge..

ILLINOIS.

AlbionDo

AllendaleDo

AltamontAlton

DoAnna

First National,do.

Benton County National -First National

do.do.

. . . .do

. . . .do

. . . .doArkansas National.First National

do.American NationalCity NationalFirst NationalMerchants NationalFirst National

.do.Citizens National.,First National. . . .

,do.do..do.-do.,.do..

National Bank of Commerce.Simmons NationalFirst National

.do..dododo

State National.First National..

dodo

D DoBarryBellevilleBenldBentonBreeseBridgeportBrightonBrookportBrownstownBunker HillCairo

DoCarbondale

DDoCarllnvilleCarlyle

Albion National..,First NationalFarmers National.First National . . .

.do..Alton NationalCitizens National.,Anna NationalFirst National

.do..do.

National Bank of Benld.First National ,—do ;; . . ,

,do , . . . , .do

Brookport National.First National

do..Alexander County National!'.Cairo National...Carbondale National..." \First NationalCarlinvilleNational . . . .First National " "

Sl-11581-29581-17081-17181-25181-22S81-16781-24681-33581-S881-89

81-14281-3381-3881-3181-32

81-27081-55081-11081-263

81-6881-37381-38381-55481-7981-8081-43

81-25581-12381-14681-18981-55S

81-7581-10281-24081-17*

70-77770-776

70-179670-113070-76570-15270-15470-52670-52570^69470-13870-116970-54170-62870-53770-102170-74070-119270-85770-17370-17570-38170-37970-46670-650

List of member banks which have joined the collection systemof the Federal reserue banks—Continued.


City or town.

ILLINOIS—continued.

CarmiDo

Carriers MillsCarrolltonCartervilleCentraliaChristopherCobdenColleenCollinsvilleColumbiaCrossvilleDahlgrenDongolaDuquoinEast St. Louis

DoEdwardsvilleEffinghamEldoradoEqualityFairfield

DoFarmersvilleFloraFreeburgGiUespieGolcondaGorevilleGorhamGrand TowerGranite City

DoGrayyille

"DoGreenfieldGreenvilleGriggsvilleHarrisburgHerrin

DoHighlandHillsboro

DoIrvingJacksonvilleJersey villeK i n m u n d y . . . . . . . . . . . . .LawrencevllleLitchfield

Do . , .McLeansboro I

DoMadisonMarineMarionMarissaMascoutahMetropolis

DoDo

MillstadtMound CityMoundsMount Carmel

DoMount OliveMount SterlingMount Vernon

DoMurphysboro

DoNashville

DoNational Stock YardsNeboNokomis : . . .

DO ;Norris CityOblongOdin...O'Fallon

Name of bank.

First NationalNational Bank of CanniFirst NationalGreene County NationalFirst National.Old NationalFirst National

.do..Cofieen National.First National..... . . .do

do. . . . .. . . .doFirst National.

.do.Drovers NationalSouthern Illinois NationalFirst National

.do.d o . . . . .do

Fairfield National.,First National. . . .do. . . .do. . . .doGillespie National..First National

do.do..do..do.

Granite City National..Farmers NationalFirst National

.do.Bradford National...Griggsville National.City N a i lCity National

doFirst National. . , .doHillsboro NationalPeoples NationalIrving NationalAyers NationalNational Bank of Jerseyville...First National. . . .do. . . .do ;.Litchfleld NationalFirst NationalPeoples NationalFirst National..,

dodo

. . . .do

. . . .doCity National..,,First National...National State.**.First National..,

dodo

American National..First National

do..do;

Ham NationalThird National !

City NationalFirst NationalFarmers & Merchants National.First National ; .National Stock Yards National. |First NationalFarmers NationalNokomis National IFirst NationalOil Belt NationalFirst National. . . .do ' . .

Transitnumber.

70-52270-52370-70770-60070-51470-235

70-122170-123070-87370-294

70-123270-124270-100570-1703

70-37070-2070-17

70-40870-45570-484

70-128370-57270-571

70-169670-535

70-131070-60970-837

70-132470-130270-132870-22570-22670-65570-65470-81170-50170-78370-38570-33070-32870-54270-48070-481

70-137670-16470-44470-86870-49470-35270-35470-^8170-68070-404

70-185270-31770-646

70-144170-42870-42670-427

70-146370-521

70-182170-32370-32270-47570-64870-27270-27370-28770-28670-62770-626

70-148070-172970-66370-66270-85370-733

70-150370-1504


AUGUST 1,1915. FEDERAL EBSEEVE BULLETIK, 201



City or town.

ILLINOIS—continued.OlneyPalestinePinckneyville.. -PittsfieldQuincy

DoRaymondRoodhouseSt. ElmoSt. Francisville.St. PeterSalemSandoval

Shawneetown.SpartaStauntonStunnerTamaroaTrentonUllinVandaliaViennaWaterlooWaverlyWayne CilWest! .....West Salem..White Hall.

DoWitt

DoWorden

BedfordDo

BIcknellBirdseyeBoonviUe

DoCannelton

DoCarlisleCharlestown .Corydon

Do ,Evansville

Do .Do

Fort BranchHollandHuntingburg...JasonvifleJeffersonville...LlntonLoogooteeLynnvilleMadison..

DoMiUtown.Mount Vernon..

DoNew Albany

Do..New Harmony..OdonOrleans ;OwensvillePatokaPetersburg ,Poseyville

DoPrinceton ,RockportSeymour

DoShelburnSullivanTell City

Do

Name of bank.

First National.. . . .do... .do

doQuincy National.Ricker National..First National...

do.do..do..do.

Salem National.First National.,

do-City National..First National.

,do.do..do.

..do..do.,.do..do..do..do..do..do..do.do

White Hall National.Oland NationalWitt National ,Wall National

Bedford NationalCitizens NationalFirst NationalBirdseye NationalCity NationalFarmers & Merchants National.Cannelton NationalFirst National

do... .doCorydon NationalFirst NationalCitizens NationalCity NationalOld State NationalFarmers & Merchants NationalHolland NationalFirst National.....do.. . .do.....do

doLynnville National.First NationalNational BranchFirst National

do.Mount Vernon National.New Albany National...Second NationalFirst National

do.National Bank of Orleans...First NationalPatoka NationalFirst NationalBozeman-Waters National..First NationalFarmers NationalFirst National

do.Seymour NationalFirst NationalNational Bant of Sullivan..Citizens National ,Tell City National

Transitnumber.

70-41270-74970-53470-63670-5170-49

70-91470-61670-79470-753

70-111170-54570-706

70-157770-66770-50670-40170-74770-90070-690

70-163270-51170-826

70-174770-710

70-165170-63070-96770-51970-518

70-167370-177070-1678

71-24071-23971-42271-68371-39071-39171-48071-48171-015

S117171-51071-5U

71-471-271-1

71-57571-78271-43871-79171-18571-31271-47571-81671-28271-28171-83471-31671-31771-8971-90

71-56471-87071-54471-55971-88071-46271-63071-63171-29471-42771-29771-29871-90871-38371-41171-410



City or town.

INDIANA—continued.VevayVincennes...

Do.Do

Wadesville...Washington.

Do ;.Wlnslow

BardwellBowling Green..

DoCampbellsville.,Carrollton

DoColumbiaDanvilleFultonGlasgow

D o . . . . 'Do ,

Harrodsburg.. . ,Do

Henderson ,Hodgenville.. . .

DoHopkins vi l le . . .Lawrenceburg..

DoLebanonLouisville

DoDoDoDoDoDoDo

Madisonville...Mayfield

DoMontlcelloMorganfield....Owensboro

DoDo

O wentonPaducahPrincetonProv idence . . . .Eussellville

DoScottsville

DoSebreeSpringfieldWIckliffe

MISSISSIPPI.

AckermanColumbusCorinth

DoTupelo —

MISSOURI.

AppletonCityBolivarBoonvilleBosworthBrunswickCaboolCainesvilleCaliforniaCantonCape GirardeauCarrolltonCassvilleCentraliaChaffee

Name of bank.

First National.do.

German NationalSecond NationalFarmers National.....Peoples NationalWashington National.First National

First NationalAmerican National..Citizens National....Taylor NationalCarrollton National.First National

.do..Citizens NationalFirst NationalFarmers NationalFirst NationalTrigg NationalFirst NationalMercer NationalHenderson NationalFarmers NationalLa Rue NationalFirst NationalAnderson NationalLawrenceburg NationalCitizens NationalAmerican NationalCitizens NationalFirst NationalLouisville National Banking Co,National Bank t>f Commerce..,National Bank of Kentucky....Southern NationalUnion National.-Farmers National

. .do-First NationalCitizens NationalMorganfield National....First NationalNational DepositUnited States National.First National

..do.Farmers NationalUnion National -.Citizens NationalNational DepositAllen County National-First National •. . . .do

do....do

First NationalNational Bank of Commerce.Citizens NationalFirst National

do...

First National..^do

Central National.First National. - -

..do..dod O ; •

Monlteau National.First National.....do

dodo

Transitnumber.

71-55571-15371-15471-16571-93671-26371-26271-958

73-30373-7473-73

73-28173-22073-21973-31073-12473-18973-19773-19673-19573-16473-1657^n5O

73-33873-33973-70

73-22373-22473-17021-2421-1021-5

21-2021-321-1

21-1121-23

73-13673-11273-10873-25973-18673-4173-4273-47

73-30673-34

73-17773-21273-16973-16873-26373-26473-24473-26073-638

86-20185^7

85-11085-10985-128

80-50780-34380-20380-59280-39480-58280-55180-30980-29880-10580-23680-̂ 58780-31680-322


202 FEDEEAL EESEEVE BULLETIN. AUGUST 1,1315.

List of member hanks which have joined the collection systemof the Federal reserve banks—Continued.

DISTRICT No. 8—Continued,

City or town.

MISSOUBI—continued.Chillicothe

DoClinton

DoColumbia

DoEldorado SpringsGreen City

Do.HamiltonHannibalHoldenJacksonJefferson CityKirksvilleLebanonLinn Creek , .Ludlow ,

BoMarshfieldMemphis ,MexicoMilanMonettMountain GrovePalmyraPierce CityPoloPurdy.Rid,St, __St. Louis

DoDoDoDo.DoDoDo

SalemSedalia

DoSeymourBpringfleld

DoSteelvilleTrentonUnlonville

DoVersaillesWarrensburgWashingtonWellston. . . . . . .West PlainsWindsor

TENNESSEE.

BrownsvilleCovingtonJackson

Do * . . .DO ; ; ; . . .

MemphisDo " . . .Do " * . . ,Do " " . . .

Paris "*"...RipleyUnion City

Name of bank.

Citizens NationalFirst Nat ional . . . . . . . . . .Clinton NationalPeoples NationalBoone County National..Exchange NationalFirst NationalAmerican National.City NationalFirst National.Hannibal NationalFirst NationalPeoples NationalFirst NationalCitizens National.First National

do..Farmers National,First National.. . .

do.Scotland County NationalFirst National

do...do....do....do....do...do.,.do,,.do.,.do..

Central NationalMechanics-American National.Mercantile NationalMercantile Trust CoMerchants-Laclede National..-'National Bank of Commerce. -State NationalThird NationalFirst NationalCitizens NationalThird NationalPeoples NationalMcDaniel NationalUnion NationalF irst NationalTrenton NationalMarshall NationalNational Bank of Unionville..First Nationalpeoples NationalFirst National

do. ...do ; ; . . .. . . .do

First National . . . .do

, . . .Second NationalSecurity National..:...Central State National.First NationalMercantile NationalNational CityFirst National

doThird National

Transitnumber.

DISTRICT No. 9.

MICHIGAN,

L'AnseMunising. . . . . . . . . .

MINNESOTA.AdaAitkin

Baraga County NationalFirst National Bank of Alger

County.

Ada NationalFirst National

80-13980-13880-18080-18180-8580-86

80-27680-56280-56380-378SIMS

80-141280-321

80-6180-132

80-141480-74280-767SO-76880-46580-339

. 80-14860-29980-20780-38380-30780-32880-698

80-117580-56480-98

4-64-324-204-214-194-264-284-29

80-37180-5380-55

80-66580-29

80-880-58980-15880-33180-33280-39880-19480-22080-11080.-25580-295

87-14187-56787-5987-6087-65

26-726-226-6

26-6587-11287-55487-102

74-70474-317

75-119275-261

IAst of member banks which have joined the collection systemof the Federal reserve banks—Continued,


City or town.

MINNESOTA—continued.

AlexandriaAmboyAnokaAtwaterBelle PlaineBlackduckBraham ,CeylonCrookston

DoDeer RiverElbow LakeFoleyGrand RapidsHalstadHawleyHendncks.

DoHopkins.. .Hutchinson...Jackson

DoLake Park . . .Lanesboro...,LeRoyLitehfleld....Little Falls...Long Prairie.Luverne

DoMankato

DoDo

Minneapolis..DoDoDo

MoorheadDo

New PragueOliviaOsakisParkers Prairie. ,PrincetonKed Lake Falls .Rush CityRushmoreSt. Paul

DoDoDoDo

Sleepy EyeSpringfieldStephenTylerWatervilleWheatonWillmar

MONTANA.Anaconda ,BakerBillingsBozeman

ConradDeer Lodge.Forsyth. . . . .Glasgow

DoGreat Falls.,Hamilton...HarlemIsmayKalispell..-.Lewis town..MaltaMissoula

Name of bank.

.dodo

Anoka National-First National...

..do...do.,.do...do.

, , . .doMerchants National.First National

..do..do.

..do.

..do.

..do.

..do._.Ao.Farmers NationalFirst National Bank of West

Minneapolis.Farmers NationalFirst NationalJackson NationalFirst National

.do,..do...do.

German-American NationalFirst NationalFarmers NationalNational Bank of LuverneFirst NationalNational Bank of Commerce...National Citizens ,First & Security NationalMetropolitan NationalNorthwestern NationalScandinavian-American Na-

tional.First NationalMoorhead NationalFirst NationalPeoples First NationalFirst National

do. . . .doFanners National.First National

do.American NationalCapital NationalFirst NationalMerchants NationalNational Bank of Commerce.First National

do .•. .do .. .do .. .do .

National Bank of Wheaton...,First National

Anaconda NationalFirst NationalYellowstone NationalNational Bank of Gallatin Val-

First'NationalUnited States NationalFirst National

do.Glasgow National..First National. . . .do. . . .do. . . . do . _,.Conrad National.First National...

do. . . .do

Transitnumber.

75-15775-53975-14175-48075-31775-S6275-66575-58775-7875-77

75-71175-41975-13775-19975-51975-13975-41175-54875-54975-160

75-103575-21675-21775-43075-35975-44175-18875-10975-30675-17675-17775-3375-3775-34

17-217-62

17-117-7

75-13075-13175-27175-36275-35375-56775-26575-24075-36175-61122-722-522-122-322-8

75-10775-27875-46575-47175-29775-29675-138

93-3593-30493-3893-60

93-10393-7793-9393-9593-9693-1593-84

93-20193-20893-4893-73

93-13793-21





City or town.

MONTANA—continued.

MooreRonanThree Forks.Townsend...

NORTH DAKOTA.

BismarckBottineauBowmanBrinsmadeBuffaloCando

DoChurehs Ferry.Crary...Devils Lake.. .DickinsonDraytonEast FairvieEllendale.Fargo.....

new.

DoFlngal ,FinleyGrand Forks-..,HampdenHatten .HettingerHopeHunter . . . . .Lidgerwood.LitchvilleLintonMcVilleMandanMannarthMilnorNorthwoodOsnabrockPark RiverReynoldsRoletteSt. Thomas....Sentinel Butte.SheyenneSteeleTower City

SOUTH DAKOTA.

ArlingtonBridge water.Castlewood..Clear Lake...Hot Springs.MclntoshMilbank.....

DoMitchell

DoDo

OldhamParkstonPierre.

Sioux

ViennaWatertown..

."Woonsocket.

WISCONSIN.

Eau ClaireGrantsburgManitowocNeillsvillePhillips

Name of bank. Transitnumber.

First National,do

-do..do.

First National... .do

.do.

.do.

.do.Cando National.First National..,. . . .do....do..-.doDakota National.First National...

.do.. . - .doFargo NationalFirst NationalMerchants National.First National

-do..do.

..do.Farmers & Merchants NationalFirst NationalHope NationalFirst NationalFarmers NationalFirst National .V

.do-.do.. .

.....dodo. .

Milnor National...Citizens National.First National....

do.do..do..do.

..do.

..do.

..do.

..do.

First National...-.do

do... .doPeoples National..First National...,

..do.Merchants National.First NationalMitchell National.•-Western National...First National -.

do.Pierre NationalFirst NationalScandinavian-American Na-

tional.First National

do....do

Union National •First National •National Bank of Manitowoc.,First National

do

93-12193-14693-11293-111

77-2977-91

77-22977-43277-527

77-8977-88

77-23577-380

77-3477-49

77-190•77-565

77-8877-377-177-2

77-21177-205

77-1577-34777-15377-13677-12977-28777-11577-22777-17277-80577-45

77-65177-17477-13577-39877-11377-26577-27077-20377-48477-24577-21677-709

78-19078-17378-23678-20378-72

78-33378-7878-7678-297S-3078-32

78-36378-15978-5378-44

78^8

78-29678-2378-149

79-7879^39079-11379-29279-294


DISTRICT No. 9-Continued.

City or town.

WISCONSIN—continued.

Rice LakeShawano

DoSuperiorWaupacaWausau

DoWeyauwega

COLORADO.

AkronAlamosa

DoArvadaAult

DoBerthoud

DoBoulder

DoDo

BrightonBrush

DoBuena VistaCanon City

Do •CarbondaleCastle Rock

CedaredgeCenterCentral City

Do..Colorado CityColorado Springs..

DoDoDo

CortezCrate

DoCripple CreekDelta

DoDenver

DoDoDoDo..

DurangoDo

EadsEagle

Eaton •Do

EnglewoodFlorenceFort Collins.

DoDo

Fort MorganDo , . . , - .

Fountain.Fowler -»FruitaGlenwood Springs..

DoGoldenGranada... -.Grand Junction....Greeley *

Name of bank.

First National.do..

Gorman*American National.United States NationalOld NationalFirst NationalNational German-American.First National

Transitnumber.

79-21679-21979-250

79-479-25679-8979-90

79-365

DISTRICT No. 10.

First NationalAlamosa NationalAmerican NationalFirst NationalFarmers NationalFirst NationalBerthoud NationalFirst NationalBoulder NationalFirst NationalNational StateFirst National....

do.Stockmens National...

do...do..

Fremont County NationalFirst NationalFirst National of Douglas

County.First National

.do..

.do..Rocky Mountain National...First NationalColorado Springs National....El Paso NationalExchange NationalFirst NationalMontezuma Valley National.Craig NationalFirst National

.do..Delta National. . . . . . .First NationalColorado NationalDenver NationalFederal NationalFirst NationalHamilton NationalUnited States NationalBurns National •—First NationalFirst National ..First National Bank of Eagle

County.Eaton NationalFirst National.

. . . . .do.. . -do.... *•-.do . . . . •*--

Fort Collins National......Poudre Valley National. -.First NationalMorgan County National..First National

.do..do... -

Citizens NationalFirst National -••Woods-Rubey National.First NationalGrand Valley National..First National

2098—15 5





City or town.

COLOBADO—continued.

GreeleyDo

Gunnlson.Hayden ,HollyHolyokeHotchklssHugoIdaho Springs

DoJohnstownJulesburg

DoLafayetteLaJaraLa JuntaLtunar,.. . . .•••

DoLas AnimasLeadville

DoLittletonLongmont

DoLoveland

DoMancosMeekerMonte VistaMontrose

DoO latheOrdwayPalisadesPaoniaPlattevillePueblo

DoBineRocky Ford ,

DoSaguacheSalida

DoSedgwickSilvertonSteamboat SpringsSterling......

DoDo

TellurideTrinidad

DoWalsenburgWellingtonWindsorWray

DoYuma

KANSAS.

Abilene ,.,Do

AlmaDo ;

AlmenaAnthony.. . . . . .

DoArkansas City......

Do . . . . . . . . .AshlandAtchison...;

Do ..AtticaAtwoodAugustaBarnardBaxter SpringsBcattie. ; . . . . . . . „ .Belleville

Do

Name of bank*

Greeley National.,Union National..,First National

.do....do....do.,.do..

..do...do..

Merchants and Miners National-First NationalCitizens National.Firs t National

do..do..

..do..

..do..Lamar NationalFirst National ,American National...Carbonate National..First National ,Farmers National...,Longmont National..Firs! National ,Loveland National..First National

do.. . .doMontrose National.First National

do.. . .doPalisades NationalFirst NationalPlattevtlle NationalFirst NationalWestern NationalFirst National

doRocky Ford National...First'NationalCommercial NationalFirst National

dododo

Farmers NationalFirst NationalLogan County National.First National

do..Trinidad National..First National

dodo

, . : . . d . . . .The National Bank of..First National

Abilene National BankFanners National BankAlma National BankFarmers National Bank;First National BankCititens National BankFirst National BankHome National BankSecurity National BankStockgrowers National Bank..Exchange National Bank.^....First National Bank.,

do.

Transitnumber.



City or town.

KANSAS—continued.

Beloit..Do.

Bonner Springs.BurlingameBurlington

DoBurr OakCaneyCedar Vale.'!!!!!

DoCentraliaChanuteCherokeeCherryvale

Clay CenterDo

CliftonCoffeyville

DoColdwater.ColumbusConcordiaConway Springs..,Cotton wood Falls.

DoCouncil GroveDelphosDlghtenDodge CityEdmondEdnaEl Dorado

Do

ElkCItyEllsworthEmporia.

DoEnglewoodEureka

DoDo

FormosaFort Leavenworth.Fort ScottFowler. . . . . .GalenaGarden City

DoGarnettGaylordGirardGlascoGoffGoodland

DoGreat Bend

DoGreensburgGypsumHamiltonHarper....HartfordHavensvilleHays CityHerington.. . . .Hiawatha..HighlandHillsboro.-HoislngtonHolton.

Name of bank.

First National BankGerman National Bank of

Northern Kansas.First National Bank

doFanners National BankPeoples National B a n k . . . . . . .Jewell County National Bank.Caney Valley National Bank..Home National BankCedar Vale National BankDosbaugh National BankFirst National Bank

do..do.

Montgomery County NationalBank.

First National Bank ,Peoples National BankFirst National BankCondon National BankFirst National Bank ,Cold water National BankFirst National Bank

..do.

..do.Chase County National Bank..Exchange National BankCouncil Grove National Bank.First National Bank

do.National Bank of Commerce.First National Bank

do.El Dorado National BankFarmers <fc Merchants National

Bank.First National BankCentral National BankCitizens National ,Emporia National ,First NationalCitizens National .First NationalHome NationalFirst National ,Army NationalCitizens National.. ,First National .-...,Galena National ,First National.- . . . . . . . . . .Garden City NationalNational Bank of Commerce...First National

do.do.

. . . .doFarmers National •First National. -.Citizens NationalFirst NationalFarmers NationalGypsum Valley National .First NationalThe National Bank of Harper.Hartford NationalFirst National,.do.

.do...do...do..do.

. . . .do

. . . .dodo.do.

Transitnumber.

Farmers National BankFirst National Bank ,

do :Baxter National Bank ,First National BankThe National Bank of Belleville.Peoples National Bank

HortonHoward

DoHoxieHumboldt..Hutchlnson.

Do

Howard NationalFirst National.-.Humboldt National...Commercial National.First National


AUGUST 1,191ft. FEDERAL RESEBVE BULLETIN. 205



City or town.

KANSAS—continued.Independence

DoDo

IolaJewell CityJunction City

DoKansas City

DoKensingtonKingmanKingsleyKiowaLaHarpeLarnedLawrence ,go

DoLeavenworth

DoDo

LebanonLeRoyLiberalLincolnLfndsborg.LoganLongtonLucasLurayLyndonLyonsMadisonManhattan.. . . . .

DoMankatoMarlon ...Marysville... . . .MayettaMeadeMedicine Lodge.Minneapolis

DoMoline

DoMount Hope. . . .NatomaNeodesha

DoNess City

DoNewton

DoNorcatur..Norton . .Nortonville... . .OakleyOberlin...

DoOlatheOsborne

Do. . . :Do . . . .

Ottawa . . . . .Do

OverbrookPaola_ DoParsonsPeabodyPhillipsburgPittsburg

DoDo

Name of bank.

Citizens NationalCommercial National.First NationalNorthrup NationalFirst NationalCentral NationalFirst NationalCommercial National.Peoples NationalFirst National

do.The National Bank of Kingsley.First NationalFirst National BankMoffett Bros. National Bank.,Lawrence National BankMerchants National BankWatkins National BankFirst National BankLeavenworth National Bank..Manufacturers National Bank,First National Bank

do,.do.

Farmers National Bank.First National Bank

do.Home National Bank.First National Bank.,

do.do.

Lyons National Bank.First National Bank..

do.Union National BankMankato National Bank.Marion National Bank. . .First National Bank

do..do..do.

Citizens National BankMinneapolis National Bank.First National BankMoline National BankFirst National Bank

dO ';.do.

Neodesha National Bank....Citizens National BankThe National Bank of Ness CityFirst National BankMidland National BankFirst National Bank

.do.

Transitnumber.

List of member banks which have joined the collection systemof the Federal reserve bante—Continued.


City or town.

KANSAS—continued.St. Marys..Salina

DoScott City.SedanSeneciieca.

DoSmith Center.SolomonSpearville....*.StaffordSterlingStockton

DoSyracuseTbayerTopeka

DoDo

TorontoTroyVictoriaWamegoWashington...

DoWaverlyWellington....

DoWetmoreWhite City. . .Wichita

DoDoDo

WinfieldgoDo

MISSOURI.AdrianAlbanyBurlington Junction.CameronCartersvilleCarthage

DoDo

Excelsior SpringsFairviewGolden City

Do.Grant CityHarrison villeIndependence

Name of bank.

First NationalFarmers NationalNational Bank of America..First National

.do.Ao

National Bank of..First NationalSolomon National..First NationalFarmers National..First NationalNational StateStockton National.First National

do.

Transitnumber.

Central NationalFanners National...Merchants National.First National

do.German National.First National....

..do.Washington NationalFirst NationalNational Bank of Commerce.Wellington NationalFirst National

.do.Fourth NationalKansas NationalNational Bank of Commerce.Union Stock Yards National.Cowley County National.....First NationalWinfield National

First National..,— d o

.do.,

.do..

.do..Carthage National.,Central National...First National

.do...do

Citizens National..,First National

.do..,Citizens National..,First National

do..

Plainvffle....Pleasanton...Prairie View.PlatteSabetha.. . . . .St. John

Do

.do.

.do.Farmers National Bank...Oberlin National Bank....First National BankExchange National Bank.Farmers National Bank...First National

do.Peoples NationalFirst NationalMiami County National.Peoples NationalFirst National

d o . . . . .

JoplinDoDo

Kansas City..goDoDoDoDoDoDoDo

. Do

..do..do.

National Bank of Pittsburg.. _Pittsburg National Bank of

Commerce.First National

do

DoDo

King City,.Do

LamarLathrop...-Liberty^.

Cunningham NationalFirst NationalJoplin NationalCommonwealth NationalDrovers NationalFirst NationalGate City NationalInter-State NationalNational ReserveNew England National.Park NationalSecurity NationalSouthwest National Bank of

Commerce.Stockyards NationalTraders National-Citizens National.First National

.do..,

National Bank of.,do

First National.. . .St. John National.

Marys villeNeoshoNevada •

DoNorth Kansas City..Plattsburg

.do.,..do....do....do..

doThornton National..National Bank of....First National




DISTRICT No. lO—Continued.

City or town.

MISS OUBI—continued.

Pleasant Hill , . .St.Joseph

goDoDo

SarcoxleSavannah

TarkioWebb City

NEBRASKA.

AdamsAinsworthAlbion

DoAllenAlliance

DoAmherstAnsleyArlingtonAshlandAtkinson -Auburn

DoAurora

DoDo

BancroftBayardBazile MillsBeatrice .

Do "BeemerBeldenBenedictBertrandBlairBlue HillBradshawBridgeportBursrell

Broken BowBrunswickButteCallaway

CarrollCentral CityChadronChappellClarkeColeridge

DoColumbus

DoDo

CraigfrawtofflCreightonCrete ,

DoCroftonDavid City

DoDo

DecaturDodge , .Elgin : .ElwoodEmersonFairbury

Do•Polio plfTT-

FremontDoDoDo

Friend

Name of bank.

Farmers NationalBurnes NationalFirst NationalGerman-American National—Tootle-Lemon NationalFirst National

do....do

. . . . do •.National Bank of

First National . . . .National Bank ofAlbion NationalFirst National

do .Alliance NationalFirst National

do. . . . do

doNational Bank of.First NationalCarson NationalFirst NationalAurora NationalFidelity NationalFirst National

do.. . .do

. . . d oBeatrice NationalFirst National. . . .do....do....do... .do....do....do....do... .do... .do

Custer NationalFirst National

do...dodo •-do. . . . . .

Central City NationalFirst National

. . . . do

. . . . doColeridge NationalFirst National....,Commercial NationalFirst NationalGerman National ;First National

Creighton NationalCity NationalFirst NationalFirst NationalCentral Nebraska NationalCity NationalFirst National

do :dodo ,dodo

Fanners & Merchants National.First National

Commercial NationalFarmers & Merchants National.First NationalFremont NationalFirst National

Transitnumber.

. . . . . . —



City or town.

NEBRASKA—continued.

Fullerton .-Do

G enoaBo

GeringDo , .

Gordon

DoGrcoley

GreshamHampton

DoHastings

Do „Do . .

Havelock.., . . . .Hayes Center.Hav SDrintrsHeminpfordHoldredge.HooperHumboldtHumphreyImperial „ ,i.:.Johnson . . . . .

Do ...Kearney

Do :Laurel

Do. , . . _LeighLexington . . . . .

DoLitchfield . . . .Lincoln

DoDoDo

LoomisLoupCity.L y n c h • . . , ; .

MadisonDoDo

Marquette . . . .McCook

DoDo

MindenDo

MitchellMorrillNaperNebraska City

DoDo , .

NelighNewman GroveNorfolkDoNorth BendNorth PlatteOakland

Do . . . ,Omaha...

DoDo..DoDoDo

• DoO'Neill

Do " " . .OrdOsceolaOshkoshPender „

Name of bank.

First NationalFullerton NationalFirst NationalGenoa National.First National .Germs National .First National

.doGrand Island National . . . .First National •.'

do.do..dod o .do

Hartington NationalExchange NationalFirst NationalGerman NationalFirst National

. . . . .dodo

. . . . .do.

.do 'National Bank ofFirst National..

dodo

German NationalCentral NationalCity National.First NationalLaurel National .-.First National -,-,•......Dawson County NationalFirst National . . . . . . . .First National.Central Nat iona l . . . . . . . . . . . . .City National...- -.First National...... _•National Bank of Commerce ;

First National. . . i .do . . .: . . . .do.. .

doFarmers NationalFirst NationalMadison NationalFirst National . . .Citizens NationalFirst NationalMcCook NationalFirst NationalMinden Exchange NationalFirst National

do.. . . . do . . . . . . :Merchants NationalNebraska City NationalOtoe County NationalNeligh NationalFirst NationalCitizens NationalNorfolk National.First National

..doFarmers & Merchants National.First NationalCity NationalCorn Exchange NationalFirst NationalMerchants NationalNebraska NationalOmaha NationalUnited States NationalFirst NationalO'Neill NationalFirst National

..do. . . .do -. . . .do . . .

Transitnumber.


AUGUST l f 1915. FEDERAL RESERVE BULLETIN. 207



City or town.

NEBRASKA—continued.

Pilger.,

Plainview.. : . . . .PlattsraouthRandolph.

Do.RushvilleSt. Edward

Do ; .Schuyler

DoScottsbluff.

Do . . . . . ; . .Scribner - - • . . .Seward . *

DoShelby „SidneySouth Omaha

DoDo

S p ence r . . . . . . . . . . . . . . —Stanton. . . . " . . . . . . . . . . . . . .

DoStromsburgStuart - . - . .Syracuse..Tecumseh

D o . . . . .TekamahTilden

Do. . .Trenton.University Place.UticaValentine.. . . . . . . . . ' . ' . . . ' . :Wahoo

DoWakefield

DoWalthill

DoWausa

DoWayne.

Do..Weeping Water

Do .West Point

DoWllberWilcoxWinnebagoWisner

DoWood RiverWymore.WynetYork

Do ...

NEW MEXICO.

Name of bank.

Farmers National..First National...... . . .do. . . .do.. . .doSecurity NationalStockmen's NationalFirst NationalSmith NationalFirst National.Schuyler NationalFirst NationalScottsbluff National..First National

do.Jones National.... 1..First National..

doLive Stock National.Packers NationalStockyards National.First National

do.

Transitnumber.



City or town.

OKLAHOMA—continued.

AltusDo

AlvaAnadarko....

DoApache ,Arcadia ,ArapahoArdmore

DoDo ,

Bartlesville.,DoDo

BeggsDo

BerwynBixby.Blackwell...BlairBlanchard...Blue Jacket.Bovnton

Name of bank.Transit

number.

City National..First National.. . . . do .

doNational Bank of.,First National

.do... .do

Ardmore NationalFirst NationalState NationalBartlesville National.First NationalUnion NationalFarmers NationalFirst National

do.do..do..do..do..do..do..do..do.

Stanton National.First National. . . .

•do..do.

Citizens National....Tecumseh National.First National

.do.

Braggs.Bram&n...Bristow

DoBroken Arrow.

DoBuffaloCalvin.. Do

CarmenCashion .CentraliaChandler

DoChecotah

DoDo

ChelseaCherokee

DoClaremore...

DoCleveland...

DoChickasha...

DoDoDo

ClintonDo

Collinsville..Do

Comanche...

Bristow National.First National....Citizens National.First National....

.do.. . . .doCalvin National...Carmen National.First National

Cimarron....ClaytonFarmington.,

DoLas Vegas....

DoRaton

DoSanta Fe

Ada . . .D o . . . . . .

Adding ton..Afton*.Alex . . . . . . . .Allen

Tilden National.,First National...

.do..do..do..do.

Saunders County National.Farmers National .First National

do.Walthill National.... .Commercial National..First NationalCitizens NationalFirst National.City Nat ional . . . . . . . . .First National.

.do.West Point National.National Bank ofFirst National

do "..Citizens National .First National

.do..-do.

City NationalFirst National.

First Nat ional . : . . . . . . . . . . .dodo . . - . . . . ,

San Juan County National....,First NationalSan Miguel National ,First NationalNational Bank of New Mexico.First National;

First NationalM. & P. Na t iona l . . . . . . . . . . . . .First National

do.- . . .do . . . .. . . . d o . . - : .

Cordell.DoDo

CowetaDo

Commerce...Cushing

DoCusterCity..

DoDavisDewey.. . . . .

DoDrumright..Duncan

DoDo

EdmondDo

El Dorado..Elk City... . .El Reno

DoEnid

Do

.do.. . . .do --Union NationalCommercial NationalFirst NationalPeoples NationalFirst NationalAlfalfa County NationalFarmers NationalFirst NationalNational Bank ofCleveland National.First NationalChickasha NationalCitizens NationalFirst NationalOklahoma NationalFirst NationalOklahoma State NationalCollinsville NationalFirst National

.do.Cordell NationalFanners NationalState NationalFirst NationalNational Bank of Commerce.First NationalFarmers NationalFirst National

..do..Peoples State National..First National

doSecurity NationalFirst NationalCity NationalDuncan NationalFirst NationalCitizens NationalFirst National

.do.do . . . . . . . . .

Citkens NationalFirst NationalEnid NationalFirst National.


208 FEDEBAL BESERVE BULLETIN. AUGUST 1,1915.



City or town.


DoDo

Fairfax. Do

FhirlandFatrviewForakerFort Gibson

DoFrancisFrederick

DoGearyGotebo .Grandfield . . . . . . .GroveGuthrieGuymon

DoHammonHarrahHartshorneHaskell

DoHastingsHeavener

Do. . . .Henessey

Do

DoHobart

DoDo

HoldenvilloDoDo

HollisDoDo

HominyDo

HookerHulbertHydro

DoKawCIty

DogeotaKiowa

DoKingfisher

DoKonawa

DoLahoma ,Lawton

DoLenapahLindsavLone WolfeLutherMangum

DoMarietta

DoMarlow

DoMaudMaysville

DoMcAUester

DoDo

McLoudMedford...Kiami

DoMincoMorrisMounds

Name of bank.

Eufaula NationalFirstNationalState NationalFairfax NationalFirst National

doFarmers and MerchantsFirst NationalCitizens NationalFarmers NationalFrancis NationalFirstNationalNational Bank of Commerce..FirstNational

dodo

First Nationaldo

City NationalFirstNational : .Farmers NationalFirstNational

do. . . .doHaskell NationalNational Bank ofFirstNationalState NationalFarmers and MerchantsFirst National

doMiners NationalCity NationalFarmers and Merchants NationaFirstNationalAmerican NationalFarmers NationalFirstNationalCity NationalNational Bank of Commerce .State NationalFirstNationalNational Bank of Commerce..First National

doFarmers NationalFirstNationalFarmers NationalNational Bank ofKeota NationalFirst NationalPeoples NationalFirstNationalPeoples NationalFirst NationalKonawa NationalFirstNationalCity NationalFirst NationalLenapah NationalFirst National

dodo

.. ..doMangum NationalFirstNationalMarietta NationalNational Bank ofState NationalFirst NationalFarmers NationalFirst NationalAmerican National .,City NationalFirst National

.do

.do

.doOttawa County NationalFirstNational. . . .do

Transitnumber.



City or town.


Mountain ViewMuldrowMuskogee

Do.DoDoDo

NewkirkDo

New WilsonNobleNorman.

Do.

DoDo

Okemah . . . . . . . . . . . . . .Do

Okmulgee . . . .Do:

Oklahoma CityDo.D o . . . . . . . . . . . . . . .

DoDo .-DO . . . . . . . : . - .

Oktaha .-Olustee. . . . . . .Owasso

DoDo

PawhuskaDo . . . . .Do

PawneeDo . . . . . . .Do

Perry . . . . . .PoncaCity ..•

Do. . . . . . .Pond Creek „•_•Porter

DoPoteau

DoPrague

Pry or Creek...,Purcell

DoQuintonRalstonRinglingRoff . . . . . . . . . . . .

Do

Rush Springs

SallisawDo

SapulpaDo

DoSoiling

Sentinel . . . . . .ShattuckShawnee

DoDo

SkiatockDo

SnyderSpiroStillwater 1

Name of bank.

FirstNationaldo

American NationalCommercial NationalExchange NationalFirst NationalMuskogee NationalEastman NationalFirstNational

. . . . .do

. . . . .doFarmers NationalFirst NationalCommercial NationalFirst NationalNowata NationalFirst National.Okemah NationalCitizens National,First NationalAmerican NationalFarmers NationalOklahoma Stockyards Na-

tional.Security Nat iona l . . . . . . . . . . . . . .State National. .-...•Western NationalFirst National

dodo

National Bank of Commerce...Pauls Valley NationalAmerican NationalCitizens National...First NationalArkansas Valley NationalFirstNationalPawnee National.FirstNationalFarmers National.. ;Germania NationalFarmers NationalFirst National

doNational Bank of Commerce...First NationalNational Bank ofFirst NationalPrague NationalFirst NationalChickasha NationalUnion NationalFirst National

. . . d oFarmers and Mechanics Na-

tional. 1First National !

. . . .do

Transitnumber.

. . . .do ;do ' 'Citizens National

Merchants NationalAmerican NationalFirst National

. . . .doBeckham County NationalFirst National. . . .do.. . .doShattuck NationalNational Bank of Commerce...Shawnee NationalState NationalFirst NationalOklahoma NationalFirst National

do





City or town.


Stillwater.,...Stigler

DOStilwellStonewallStratfordStroud

DoStuartSulphurTahlequah....

DoTalihinaTalogaTecumseh

DoDo

Temple :ThomasTonkawaTexhomaTulsa

DoDoDoDoDo . . .

TyroneVerden

DoVianVinita

DoWagoner :.Walters

DoWanette

DoWashington...WatongaWaukomis... .Waurika

DoWaynokaWeatherford..

DoWebber Falls.WeleetkaWellstonWestvUleWetumka

DoWewokaWilburton. . . .Woodward....Wynnewood..

DoYale

DoYukon

Do

Buffalo

DoCheyenne

DoDo

CodvDo

DouglasDo

EvanstonDo

Green RiverKemmererLanderLaramleCity

Name of bank.

Stillwater National.American National.First National. . . .do. . . .do. . . .do

doStroud National.,First National...Park National...Central National.First National.... . . .do

doFarmers National.First NationalTecumseh NationalTemple NationalFirst NationalTonkawa NationalFirst NationalAmerican NationalCentral NationalExchange NationalFirst NationalLiberty National.!National Bank of Commerce.First National

do..National Bank of..First National

.do..Vinita National.First National...

do...Walters National..First National.. . .State National.. . .First National.....

do..Waukomis National...First NationalWaurika NationalFirst National

.do..German National.First National. . . .do. . . .do. . . .doAmerican NationalFirst NationalFarmers NationalLatimer County National.First National

do..Southern National.First NationalFarmers National..First NationalYukon National....

First NationalCasper NationalStockmans NationalWyoming NationalCitizens NationalFirst NationalStock Growers National..First NationalShoshone NationalDouglas NationalFirst National .Evanston NationalFirst National

do.do..do.Albany County Nalonalt..

Transitnumber.



City or town.

WYOMING—continued.

Laramie City.MeeteetseNewcastlePowell.

Do . . .Rawlins..,

Do.Do

Kock Springs.Do

SheridanDo

ShoshoniThermopolis..TorringtonWorland.

Name of bank.

First National..do.do.,do.

Powell NationalFirst NationalRawlins NationalStock Growers National..First NationalRock Springs National...First NationalSheridan NationalFirst National

dododo

Transitnumber.

DISTRICT No. I I .

Lake Charles..Do

ShreveportDo.

OKLAHOMA.

AchilleAntlersAylesworthBochitoBoswell .CaddoColbertDurant

DoHugoIdabelKeneficKingstonTIshomingo

TEXAS.

AlpineArlingtonAthensCantonClydeColemanCommerceCorpus ChristlDallas

DoDoDoDoDo

Eagle LakeEnnls

DoFloresvilleFort Worth

DoDoDoDo. . . . .Do

GainesvilleDo.

Galveston.GarlandGlen RoseGonzalesGranbury

DoGrangerHempstead

Calcasleu National...First NationalCommercial National.First National

First Nat ional . . . . . . .Antlers National.. . . .First National. . . .do, . . .doSecurity NationalFirst NationalDurant NationalFirst National. . . .do. . . .do. . . .do. . . .doTishomingo National..

First NationalCitizens NationalFirst National. . . .do.. . .do.Coleman National.First NationalCorpus Christl NationalAmerican Exchange National,City National -.First StateMerchants NationalNational Bank of Commerce..Security NationalFirst NationalCitizens NationalEnnis NationalCity NationalAmerican National.Farmers & Mechanics National.First NationalFort Worth NationalStockyards NationalWestern NationalFirst National...Lindsay NationalFirst National...Citizens National.First NationalFarmers NationalCity NationalFirst National

do -Farmers National


210 FEDERAL RESERVE BULLETIN, AUGUST 1,1915.



City or town. Name of bank.Transitnumber.



City or town. Name of bank. Transitnumber.

TEXAS—continued.

HillsboroHouston

Do. . .DoDo

JacksonvilleKarnesCityKempMarshallMcKinney - . . . „ ,

DoMemphisMexia.Moore!Mount CalmMount PleasantOchiltreeOmahaParis

Citizens NationalFirst NationalHouston National Exchange...Lumbermans NationalNational Bank of Commerce...First NationalKarnes County NationalFirst NationalMarshall NationalCollin County NationalFirst NationalHall County NationalFirst NationalMoore NationalFirst National

do

„ DoPecosSan Antonio

DoSan MarcosSanSabaSealySherman •.,.Sonora ,Sulphur SpringsTaylorTroupWeatherford ,

Do. . .Wichita Falls . . . . ,Wills PointWhitney

.do.do

City National..First National,

do.National Bank of Commerce...Groos NationalFirst National

do.Sealy NationalMerchants & Planters National.First National

Taylor National ,First National ,Citizens National ,First National ,

doVan Zandt County National...Citizens National ,

DISTRICT No. 12.

Tempe..

CALIFORNIA.

AntiochArtesiaClaremontCoachellaDinubaGlendoraHealdsburg

Tempe National.

First National.,do.

Claremont NationalFirst NationalUnited States National-First NationalHealdsburg National....

CALIFORNIA—continued.

Los Angeles (HollywoodStation).

InglewoodLong Beach ,Mountain ViewOakland..OntarioOrangeRedlandsRichmondRio Vista KSacramentoSan FTancisco

DoDo

San Luis ObispoSanta BarbaraSouth PasadenaTorranceTulareVacavilleVisalia

DoYubaCity

IDAHO.

ArlingtonCondonCorvallisForest Grove...Hood RiverJunction City.La GrandePendleton.

DoSt. JohnsSheridanThe Dalles....

Murray.

WASHINGTON.

Port Angeles..ReardonRosaliaSnohomish....Tacoma

Hollywood National.

First NationalCity National ,First NationalCentral National..Ontario National..National Bank of..First National

do ,.do.

National Bank of D. O. Mills..,Bank of California N. ASeaboard NationalWells Fargo Nevada National..Union National:Santa Barbara County NationalFirstNational

.do.,dododo

National Bank of.FirstNational

SalmonTwin Falls.. .: ,

Citizens NationalFirstNational

Arlington NationalCondon NationalFirstNationalForest Grove National.FirstNational

do.United States National-American NationalFirst NationalPeninsula NationalFirstNational

do

FirstNational.

Citizens NationalReardon NationalWhitman County National..FirstNationalNational Bank of


AOGUST 1,1015. FEDERAL BESERVE BULLETIN. 211

INFORMAL RULINGSBelow are reproduced letters sent out from

time to time over the signatures of the officersof the Federal Reserve Board, which containinformation believed to be of general interestto Federal reserve banks and member banks ofthe system:Annual Election of Directors.

By direction-of the Federal Reservo Board,I transmit outline of a plan relating to theannual election of directors of Federal reservebanks, and the procedure to be followed therein,for such comment or suggestion as vou maysee fit to furnish. The proposed plan is asfollows:

(1) The annual election will be fixed for thethird Tuesday in November, which in the caseof this year will be the 16th of November, 1915.

(2) The Federal Reserve Board will issueinstructions for the grouping of banks in eachdistrict in groups of one, two, and three, anddesignate what groups are to elect directors.Except in* the case of death or resignation,there will be only one class A and one class Bdirector to be elected in each district each year,to hold office for three years, or in the case offilling- a vacancy, for the unexpired term of hispredecessor.

(3) The returns from the elections of classA and class B directors will be in and announcedDecember 1, or as soon thereafter as possible,and at the same time the Federal ReserveBoard will announce the name of the class Cdirector named by it to fill the vacancy.

(4) The Federal Reserve Board will notifythe Federal reserve banks to have a meetingfor the organization of its board of directorsand the election of officers at the first conveni-ent date within the first 15 days of January,1916.

Application of Internal-Revenue Tax.Under a ruling by the Solicitor of Internal

Revenue, dated February 15, 1915, all docu-ments, instruments, and things mentioned inschedule A of the act approved October 22,1914, when issued by the Federal reservebanks, are subject to the tax imposed by thatact. A copy of the act is inclosed, and yourattention is directed to schedule A, appearingonpages 16 et seq.

This opinion has no connection with theopinion rendered November 28, 1914, by theSolicitor of Internal Revenue, under whichthe capital stock of Federal reserve banks is

OF THE BOARD.held exempt from the special tax provided forby section 3 of the act of October 22, 1014.

Duplicates of Capital Stock Certificates.For tho convenience of the Board will you

kindly have certificates of increase of capitalstock, Form 58, and certificates of decreaseof capital stock, Form 59, made in duplicate,mailing one copy to the Comptroller of thoCurrency and one to tho Federal ReservoBoard.

Committee Action on Trustee Applications.For your information there is inclosed copy

of a letter sent to Federal Reserve Agentof the Federal Reservo Bank of .

(Indosure.JWill you accept recommendation of our

executive committee on member banks' appli-cations to act as trustee or must they bepassed upon by full board.Reply:

Recommendation of executive committeeconsidered sufficient.

Time and Savings Deposits.The Board's attitude in the past has beon

that, where banks receive savings depositssubject to enforcement of the 60-3ay notice,and where such right of enforcement was defi-nitely made known to the depositors in theway indicated, the deposits in question aresubject to 5 per cent reservo. TJbat appearsto be the case with the deposits described byyou.

Of course, if "the depositor is led to believeby advertisement or printed rule" that he canin fact get his money without notice, tho de-posit does not fall within the intent of thoregulation. Nevertheless, it is true that,under the Board's ruling, banks are allo%vedto pay money to depositors without exactingthe enforcement of tho notice. In otherwords, the notice is merely waived as a matterof courtesy; and the definite understanding isthat it may be applied at any time. Other-wise, the deposits are in reality demand de-posits.

Composition of Executive Committee.The Board recently received the following

letter:"A short time before the opening of the

Federal Reserve Bank of you sent us aform of by-laws, the adoption of which at the


212 FEDEEAL EESEEVE BULLETIN. AUGUST I , 1915.

time we thought desirable. In the form sentus the following paragraph appeared:

"'There shall be an executive committeeconsisting of the governor, the Federal reserveagent, and one or more directors chosen fromclasses A o r B ' * * *

"From its reading it would be inferred thata class C director was not at any time ex-pected to serve as a third member of theexecutive committee. I understand, how-ever, that in several of the banks class Cdirectors have the same standing and privi-leges as to serving on the executive committeeas do classes A and B.

" Now since all our directors of classes A andB have served as members of that committee,we request that you inform us if there is anyreason why a class C director should not assumethe responsibilities connected with serviceon our executive committee as a third member.

Reply was sent as follows:4 * Your letter of July 10, respecting the com-

position of the executive committee of yourboard, has been received and duly consideredby the Federal Reserve Board.

" I am instructed to say that the boardsees no reason why your board should not, ifit chooses, amend its by-laws in such a wayas to permit a class C director to serve as athird member of the executive committee,"

Date of Closing Books.With reference to your letter of July 13

regarding the closing of books as of June 30,1915, you are advised that the Board's chiefexaminer has submitted the following memo-randum, which appears to cover the questionraised:

"A number of institutions have closed outtheir current earnings and expense accountsand established a net balance under the head-ing 'Profit and lo^s account/ This was donein line with the general custom of bankinginstitutions to close their accounts on June 30and December 31 of each year,

" I t would appear that Mr. Elliott is of theopinion that it would be better to defer theclosing out of accounts until the end of thecalendar year.

"Personally, I believe that the question isone of policy, and it would be better to haveuniform practice among the Federal reservebanks. At the same time, in case the banksprefer the first-mentioned method, there isno good reason why they should not be per-mitted to do so, so long as monthly reportsare made to the Board as to expenses andearnings on the forms prescribed. Would

suggest that advice be made to Goy. .that, in the opinion of the Board, while it maybe desirable for the banks not to close theirbooks until December 31, 1915, no objectionshould be raised should the Federal reservebanks desire to close their books on June 30,with a view to conforming to banking customin the district."

Eligibility of Small State Banks.In view of the provision of section 9 of the

Federal reserve act which requires that "'No.applying bank shall be admitted to member-ship in a Federal reserve bank unless it pos-sesses a paid-up unimpaired capital sufficientto entitle it to become a national banking asso-ciation in the place where it is situated, underthe provisions of the national banking act,"it appears that the Board will be compelled torefuse membership to the -——— - — bank,unless it should increase its capital stock to$200,000, which is the minimum for a nationalbank in a city the size of . No waysuggests itself oy which the Board cojiild admitthis bank with its present capitalization

Eligibility of Building and Loan Associations.The Board,fully appreciates the vaiue of the

building and loan association, and recognizesit as having a distinct and important place inthe financial field. At the present time, how-ever, there seems to be considerable doubtwhether building and loan associations wouldbe held to be banks within the meaning of theFederal reserve act. Assuming that they arenot, it would appear that such associationswould not be eligible for membership in theFederal reserve bank of any district where therequired capital has been provided throughsubscriptions made by banks. No doubt youare aware that mortgages held by building andloan associations when liquidated by monthlypayments extending over a period of years,would not be eligible for rediscount at a Federalreserve bank.

The changes in the conditions of membershipwhich you suggest would require a modifica-tion of the Federal reserve act, which, of course,is not feasible just now, Congress not being insession, even if all other concutions were favor-able.

Mule and Cattle Paper.Notes made by mule and cattle dealers should

be classed as mercantile rather than agricultural paper. We take it that a note made by adealer in agricultural implements would not be



regarded as agricultural paper, although theimplements themselves are used for agricul-tural purposes, just as mules are. In fact,agricultural implements are used less fre-quently off the farm than are mules, which ani-mals are often used in cities, by contractors,and for war purposes. We can see no reason,however, why a note made by a farmer in pay-ment, or part payment, for a mule to be used infarm work should not be classed as agricul-tural paper, but dealers in mules and cattle aremerely jobbers in merchandise, and as theygenerally have a mercantile rating their paperis classed as mercantile paper in the ordinaryacceptation of the term. There seems to be noreason why they should be given the benefit ofsix months' maturities, particularly when suchaction would reduce your lines of long-timepaper open to those engaged in purely agricul-tural pursuits.

Interpretation of Regulation B as to Borrower's State-ments.In three cases, specifically enumerated, the

regulation permits waiving as to statements ofthe borrower's financial condition, but it isexpressly stipulated, however, that the apply-ing bank "shall certify to these conditions onthe application blank m a manner to be desig-nated by the respective Federal reserve banks."

It seems clear that the Federal reserve bankshave full option as to discounting or decliningto discount any paper offered them, but noth-ing in the regulation requires a member bankto keep on file a borrower's financial statementrelating to paper offered for discount. Incertain cases it is provided that the Federalreserve bank can not accept such paper fordiscount unless statements are on file with themember bank, and in the three cases aboveenumerated the option is given Federal reservebanks of rediscounting paper even where aborrower's statement is not on file in the mem-ber bank.

Quoting again from Paragraph III of theregulation—*

"I t is recommended that every memberbank maintain a file which shall contain orig-inal signed statements of the financial condi-tion of borrowers, or true copies thereof, etc."

"Member banks shall certify in their lettersof application for rediscount whether thepaper offered for rediscount is depositor's orpurchased paper, or paper rediscounted forother member banks, and whether statementsare on file. When it does not appear that suchstatements are on file, except as hereinafter

provided, * * * the Federal reserve bankshall satisfy itself as to the eligibility of thepaper offered for rediscount, and member bankswill be expected to use such statement forms,identifying stamps, etc., as may be prescribedby the respective Federal reserve banks."

From this it would appear that the optionin respect to waiving the requirement that aborrower's financial statement shall be on filerests with the member bank.

Rediscounting for Nonmember Banks.

Your letter of July 21, asking as to the redis-count with a Federal reserve bank of notes heldby a bank not a member of the system, isreceived.

The question, which you raise, has alreadyhad the consideration of the Board in connec-tion with the request for an interpretation ofthat part of section 19 of the Federal reserveact which reads as follows:

No member bank shall act as the mediumor agent of a nonmember bank in applying foror receiving discounts from a Federal reservebank under the provisions of this act except bypermission of the Federal Reserve Board.

Assuming that the paper offered by a mem-ber bank for rediscount is eligible under theregulations prescribed by the Board, it wouldbe necessary in each case for the officers of theFederal reserve bank to determine whetheror not the proceeds of such discount are to beused for the purpose of making a loan to a non-member bank. If the money thus borrowedis to be re-lent to a nonmember bank, rediscountshould not be accepted without the permissionof the Federal Reserve Board. If, on the otherhand, a member bank had in good faith ac-quired from a nonmember bank by rediscountnotes which are eligible under the regulationsof the Board for rediscount with the Federalreserve bank, and such notes were held as a partof the assets of the member bank, there wouldseem to be no objection to the Federal reservebank's accepting such rediscounts, provided theofficers are satisfied that the transaction is abona fide transaction and that the member bankdid not extend accommodation to the nonmem-ber bank with a view of rediscounting notesso acquired with the Federal reserve bank.

This is one of the cases which must be leftvery largely to the judgment and discretionof the Federal reserve hank officers; and adetermination must be reached by them on thefacts in each case.



Trustee Powers.

Applications from the following banks forpermission to act under section 11 (k) of theFederal reserve act have been approved sincethe July issue of the Bulletin, as follows:

DISTRICT NO, 1.

Trustee, executor, administrator, and registrar of stocksand bonds:

Yale National Bank, New Haven, Conn.Northampton National Bank, Northampton, Mass.

Trustee and registrar of stocks and bonds:Citizens National Bank, Newport, N. H.Wolfeboro National Bank, Wolfeboro, N. H.

DISTRICT No. 2.

Begistrar of stocks and bonds:American Exchange National Bank, New York City.Irving National Bank, New York City.

DISTRICT No. 3.

Registrar of stocks and bonds:Third National Bank, Scranton, Pa.


Annville National Bank, Annville, Pa.First National Bank, Huntingdon, Pa.First National Bank, Johnstown, Pa.

•First National Bank, Lansdale, Pa.First National Bank, Newville, Pa.Southwark National Bank, Philadelphia, Pa.National Bank of Chester County, West Chester, Pa.

Trustee, executor, and administrator:Jenkintown National Bank, Jenkintown, Pa.

DISTRICT NO. 4.

Trustee and registrar of stocks and bonds:Ohio National Bank, Columbus, Ohio.

Trustee:National Exchange Bank, Steubenville, Ohio.Citizens National Bank, Urbana, Ohio.

DISTRICT NO. 5.


American National Bank, Roanoke, Va.

DISTRICT NO. 7.

Trustee, executor, and administrator:Farmers National Bank, Wilkinson, Ind.


Franklin National Bank, Franklin, Ind.First National Bank, Fonda, Iowa.First National Bank, Rochester, Mich.

DISTRICT No. 8.

Trustee, executor, administrator, and registrar of stocksand bonds: .

Farmers National Bank, Glasgow, Ky.Trustee, executor, and administrator:

First National Bank, Versailles, Mo.

DISTRICT NO, 10.

Trustee, executor, administrator, and registrar of stocksand bonds: .

Fremont County National Bank, Canon City, Colo.First National Bank, Colorado Springs, Colo.

Trustee, executor, and administrator:First National Bank, Neosho, Mo.First National Bank, Lyons, Nebr.

DISTRICT NO, 11.

Trustee and executor:Citizens National Bank, Abilene, Tex.

Trustee, executor, and registrar of stocks and bonds:First National Bank, Port Arthur, Tex.Sealy National Bank, Sealy, Tex.

DISTRICT NO. 12.

Registrar of stocks and bonds:Central National Bank, Oakland, Cal.

Trustee, executor, and administrator:First National Bank, Mount Vernon, AVash.

Trustee, executor, administrator, and registrar of stocksand bonds.

Vancouver National Bank, Vancouver, Wash.

Discount Rates.Discount rates of each Federal reserve bank in effect

1915.

Bank.

BostonNew YorkPhiladelphia...-ClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco...

Date oflast

changeof rate.

July 3June 25

. . . d o . . . .Feb. 6June 25Apr, 30Jan. 23June 25May 18June 18Feb. 4June 25

Maturi-ties of

10 daysandless.

333

3"

3"

Maturi-ties ofover JOdays to30 days,inclus-

ive.

.1i%ItiltIIi

Maturi-ties ofover 30to 60days,inclus-

ive.

444444

Maturi-ties ofover 60to 90days,inclus-

ive.

?4£

i!•?

4£4 |

July 28,

Agricul-tural andlive-stock

paperover 90days.

555555555556

Authorized rate of acceptances, 2 to 4 per cent.On March 10 the Federal Reserve Board fixed the fol-

lowing rates for rediscounts between Federal reservebanks: 3J per cent for maturities of 30 days or less; 4 percent for maturities of over 30 days to 90 days, inclusive.

On July 22 the Federal Reserve Board approved a rateof 3£ per cent for rediscount of trade acceptances at theFederal Reserve Bank of New York.


ACIGUST 1, 1915. FEDERAL RESERVE BULLETIN. 215

CIRCULARS AND REGULATIONS.The circulars and regulations given below

were issued by the Board since the July issueof the Bulletin:

REGULATION O, SERIES OF 1915.

WASHINGTON, July 6, 1915.

REGULATIONS TOR THE GUIDANCE OF FEDERAL RESERVEAGENTS IN THE MATTER OF ISSUANCE AND REDEMPTIONOF FEDERAL RESERVE NOTES.

1. Federal reserve agents in making requisitions forFederal reserve notes to meet applications of Federalreserve banks, shall use form 45.

2. A Federal reserve bank in making application for anissue of Federal reserve notes shall accompany the appli-cation with a tender of the requisite collateral, UBing forthis purpose form BD 21-1.

3. The Federal reserve agent shall receipt for all collat-eral accepted by him as fulfilling the requirements ofsections 13 and 16 of the Federal reserve act and theregulations and instructions of the Federal Reserve Boardmade pursuant thereto, using for this purpose the appro-priate form (either BD 21-2 or BD 22-2), and shallpromptly notify the Federal Reserve Board of the col-ateral accepted, using for this, purpose the appropriateform (either BD 21-3 or BD 22-3); and shall, furthermore,report to the Federal Reserve Board each day all noteaissued to and withdrawn by said bank, using form FRA 5.

4. Upon receipt of the said collateral and upon beingsatisfied that the bank has the required gold reserve toprotect its notes, and has, furthermore, taken appropriatesteps to transmit to the Treasurer of the United Statesthe requisite gold redemption fund, at present fixed at5 per cent of the net amount of notes issued to the bank,lees the amount of gold and lawful money in the handsof the Federal reserve agent, the latter will issue Federalreserve notes to said bank within such limits as the Fed-eral Reserve Board may have fixed, and immediatelynotify the Federal Reserve Board of said issue on formsupplied for this purpose.

5. If at any time the Federal reserve agent deems itnecessary to require changes in either the amount or thecharacter of collateral deposited to secure notes, he shall,acting for the Federal Reserve Board, call upon the Fed-eral reserve bank for additional or new collateral to beadded to or substituted for that which is deemed unsatis-factory; issuing receipt therefor on the appropriate form(either BD 21-2 or BD 22-2), and shall notify the FederalReserve Board on the appropriate form (either BD 21-3 orBD22-3).

6. A Federal reserve bank may reduce its liability onaccount of outstanding Federal reserve notes by depositingwith the Federal reserve agent its-own notes, or gold, goldcertificates, or lawful money of the United States to the

amount of such notes to be retired less a ratable proportionof the amount of money standing to its credit in the goldredemption fund with the Treasurer of the United States.In either case a proportionate amount of the collateraldeposited by the bank shall be returned to it by the Fed-eral reserve agent. Forme BD 28-1, 2, 3, will bo used.

7. A Federal reserve bank may, through its Federalreserve agent, exchange notes that are unfit for circula-tion, or may exchange notes of one denomination for thoseof another. Every such transaction shall bo reported tothe Federal Reserve Board by the Federal reserve agentin daily report of transactions in Federal reserve notes.

8. Federal reserve notes unfit for circulation accumu-lated by any Federal reserve agent shall be assorted,strapped, canceled, and bundled in the manner now pro-scribed by the Treasury Department for unfit UnitedStates currency which is remitted by subtreasuriea toWashington, and the same standard of fitness shall be im-posed. These shall be shipped to the Comptroller of theCurrency, Division of Federal Reserve Note Redemption,Washington, D. C. Special instructions accompanied by"dummies" exhibiting the methods to be employed willbe furnished upon request to each Federal reserve agent.

NOTE.—The Board expects later to issue instructionsunder which notes which are soiled, but otherwise fit forcirculation, may be forwarded to Washington for launder-ing and renovating.

9. Whenever Federal reserve noteB issued by one Fed-eral reserve bank are received by another Federal reservebank, they shall, if fit for circulation, be immediately re-turned to the issuing bank for credit or redemption. How-ever, if such notes are unfit for circulation, the issuing bankshall be advised of the amount and the notes shall be de-livered to the local Federal reserve agent, who will forwardthem to the Treasury Department in the manner providedin paragraph 8 for the treatment of unfit; notes returned bythe issuing bank. Upon receipt of such notice the bank ofissue may make a demand upon the local Federal reserveagent for credit or for the issue of new notes to replace theunfit notes forwarded to the department for destruction.All transactions in these respects must be reported im-mediately to the Federal Reserve Board.

10. If at any time the gold reserve required by law to beheld by a Federal reserve bank against Federal reservenotes issued to it falls below 40 per cent (including thereinthe gold redemption fund required to be maintained in theTreasury) the Federal reserve agent shall at once notify theFederal Reserve Board, and thereupon until otherwisedirected by the Federal Reserve Board, a graduated taxupon such deficiency as provided in section 11 of the Fed-eral reserve act shall be established and shall be computedfor the present as follows:

When reserves fall below 40 per cent but are in excessof 32J per cent, the tax upon the deficiency shall be at therate of 1 per cent per annum.


216 FEDERAL EESEBVE BULLETIN, AUGUST 1,1915.

When reserves fall below 32J per cent but are in excessof 30 per cent, the tax upon the entire deficiency below 40per cent shall be at the rate of 2* per cent per annum.

When reserves fall below 30 per cent but exceed 27$ percent, the tax upon the entire deficiency below 40 per centshall be at the rate of 4 per cent per annum; and so on,increasing at the rate of 1J per cent with each reduction inreserve amounting to 2£ per cent or any fraction thereof.This is otherwise expressed in the following table:

Penalty tax on defi-Gold reserves against Federal reserve notes: ciency in reserves.

40 per cent (legal minimum, including redemptionfund) Nopenalty,

37J up to 40per cent 1 percent.35 up to 37£ per cent 1 percent.32J up to 35 per cent 1 percent.30 up to 32^ per cent 2J per cent.27J up to 30 per cent 4 percent.25up to 27£per cent 5$ percent.22J up to 25 per cent 7 percent,20 up to 22J per cent 8fc per cent.17| up to 20 per cent 10 percent.15 up to 17J per cent 11J per cent.12J up to 15 per cent 13 percent.10 up to 121 per cent 14$ per cent.71 up to 10 per cent 16 percent.5 up to 71 per cent 17J per cent.2} up to 5 per cent 19 percent.0to21percent 2O4percent.

11. At the close of business on the last day of each montheach Federal reserve agent shall furnish the Federal Re-serve Board with a consolidated statement of—

(a) All transactions in Federal reserve notes during themonth, showing for each denomination the number ofnotes on hand at the beginning of the month.

(b) The number received from the Comptroller of theCurrency during the month, the number returned by theFederal reserve bank, and the number issued to theFederal reserve bank.

(c) The number returned during the month to the Comp-troller of the Currency for cancellation and destruction,

(d) The number on hand at the close of the month.Agents are required to show in addition:(e) The total amount of notes in circulation at the end

of the month,(/) The total amount of each kind of money of the

United States in hand for retirement of notes.(g) The amounts transmitted during the month to the

Treasurer, upon direction of the Federal Reserve Board,at the request of the Secretary of the Treasury,

(h) The amount of gold on deposit, with the Treasurerof the United States at the end of the month, for the re-demption of outstanding notes.

(i) The amount of gold reserve hold by the bank, otherthan the gold redemption fund deposited with the Treas-urer of the United States.

The information in paragraphs t to % inclusive, also isrequired to be furnished by telegram immediately at theclose of business on the last day of each month for inclu-

sion in the Treasury Department's circulation statement.A consolidation of each month's reports from all theFederal reserve agents will be furnished by the FederalReserve Board to the Secretary of the Treasury.

12. The Federal Reserve Board will maintain a con-tinuous record of:

(a) The aggregate amounts of orders for notes trans-mitted by the Comptroller of the Currency for the engrav-ing and printing of Federal reserve notes.

(b) Each delivery of Federal reserve notes to Federalreserve agents.

(c) The stock of notes on hand in the Treasury of theUnited States available for shipment.

(d) The amounts of Federal reserve notes issued throughFederal reserve agents to their respective Federal reservebanks.

(e) The amount of notes fit and unfit for circulationwhich are in the possession of each Federal reserve agent.

(/) The amount of notes unfit for circulation which havebeen returned to the Comptroller of the Currency anddestroyed,

CHARLES S. HAMUN,Governor.

H. PARKER WILLIS,Secretary.

CIRCULAR NO. 16, SERIES OF 1915.

WASHINGTON, July 15, 1915,

BILLS OF EXCHANGE DRAWN AGAINST SALES OP GOODSAND ACCEPTED BY PURCHASERS, HEREINAFTER RE-FERRED TO AS "TRADE ACCEPTANCES."

By Regulation B, Series of 1915, the Board has pre-scribed the conditions upon which commercial papermay be rediscounted with Federal reserve banks, and,by Regulation J, Series of 1915, rules have been pro-mulgated covering operations in bankers' acceptances.The attached regulation is to deal with "trade accept-ances" as a distinct class of commercial paper, for whichthe Board is ready to approve the establishment of a dis-count rate somewhat lower than that applicable to othercommercial paper.

These trade acceptances are more particularly definedin the appended Regulation P, Series of 1915, and inpromulgating it the Board expresses the belief that it willconsiderably enlarge the scope of service of Federalreserve banks and, incidentally, assist in developing aclass of "double-name" paper, which has shown itselfin so many countries a desirable form of investment and animportant factor in modern commercial banking systems.

CHARLES S. HAMLIN,Governor,

H. PARKER WILLIS,Secretary.


AUGUST lf 1915. FEDERAL RESEBVE BULLETIN. 217

REGULATION P, SERIES OP 1915.

WASHINGTON, July 15,1915.

BILLS OF EXCHANGE DRAWN AGAINST SALES OP GOODS AND

ACCEPTED BY PURCHASERS, HEREINAFTER REFERRED TO

AS "TRADE ACCEPTANCES."

I.

In this regulation the term "trade acceptance" is de-fined as a bill of exchange of the character hereinafterdescribed, drawn to order, having a definite maturity andpayable in dollars in the United States, the obligation topay which has been accepted by an acknowledgment,written or stamped, and signed across the face of theinstrument by the company, firm, corporation, or personupon whom it is drawn; such agreement to be to the effectthat the acceptor will pay at maturity, according to itstenor, such draft or bill without qualifying conditions.

n.CHARACTER OF PAPER ELIGIBLE.

A trade acceptance to be eligible for rediscount, undersection 13, with a Federal reserve bank at the rate to beestablished for trade acceptances—

(a) Must be indorsed by a member bank, accompaniedby waiver of demand notice and protest.

(b) Must have a maturity at the time of discount of notmore than 90 days.

(c) Must be accepted by the purchaser of goods sold tohim by the drawer of the bill, and the bill musthave been drawn against indebtedness expresslyincurred by the acceptor in the purchase of suchgoods.

HI.

METHOD OF CERTIFYING ELIGIBILITY.

A trade acceptance must bear on its face or be accom-panied by evidence in form satisfactory to the Federalreserve bank that it was drawn by the Beller of the goodson the purchaser of such goods. Such evidence may con-sist of a certificate on or accompanying the acceptance, tothe following effect: "The obligation of the acceptor of thisbill arises out of the purchase of goods from the drawer."Such certificate may be accepted by the Federal reservebank aa sufficient evidence; provided, however, that theFederal reserve bank, in its discretion, may inquire intothe exact nature of the transaction underlying the accept-ance.

CHARLES S. HAMLIN, Governor.H. PARKER WILLIS, Secretary,

Conference of Chief Bank Examiners.

There was held on July 12-14 at the offico ofthe Comptroller of the Currency the first gen-eral conference of chief national bank exam-iners, of whom there are 12—one for each ofthe 12 Federal reserve districts.

The following chief examiners were present:Jas. D. Brennan, Boston.Chas. Starek, New York.E. I. Johnson, Philadelphia.Silas H. L. Cooper, Cleveland.Thos. P. Howard, Richmond.C. H. Abbott, Atlanta.Sherrill Smith, Chicago.C. E. French, St. Louis.Peter M. Kerst, Minneapolis.J. D. Rising, Kansas City.J. C. Chidsey, Dallas.

The only absentee was Chief ExaminerGatch, of the San Francisco district.

The chief examiners were directed to co-operate as closely as possible with the Federalreserve banks of their respective districts inmatters calculated to increase the safety andpromote the welfare of the member banks.

The chief examiners were directed, upon theirreturn to their respective districts, to call aconference of the examiners of each districtwith a view to informing them individually ofthe matters discussed at the Washington con-ference.

Purchase of Government Bonds*

The Federal Reserve Board has reached theconclusion that Government bonds, bought byFederal reserve banks prior to December 31,1915, shall not count as a part of the sum of$25,000,000, which the Federal Reserve Boardmay, in its discretion, under the provisions ofSection 18 of the Federal reserve act, annuallyrequire Federal reserve banks to purchase fromthe member banks whose applications for saleof their bonds have been filed with the Treas-urer of the United States.


218 FEDERAL BESEBVE BULLETIN. AUGUST 1,1915.

LAW DEPARTMENT.Right of State Banks and Trust Companies to Sub-

scribe for Stock in a Federal Reserve Bank.

Since the publication of the last issue of theBulletin, it has been learned that Louisianapassed a law hi 1914 authorizing State banks,savings banks, and trust companies to subscribeto stock in a Federal reserve bank. A revisedlist of those States which have enacted lawsexpressly authorizing any State bank to be-come a member bank follows:

Idaho, Iowa, Kentucky, Louisiana, Maine,Massachusetts, Michigan, Minnesota, Missis-sippi, Missouri, Montana, Nebraska, New Jer-sey, New York, North Dakota, Ohio, Oregon,South Carolina, South Dakota, Texas, Utah,Virginia, Washington.

In the following States, though there hasbeen no express enabling legislation, the Stateauthorities have ruled that any State bankmay subscribe for stock in a Federal reservebank:

Alabama, Arizona, Arkansas, California,Delaware, Georgia, Illinois, Indiana, Kansas,Maryland, North Carolina, Tennessee, Ver-mont, West Virginia, and Wisconsin.

The State authorites have ruled in NewMexico and Rhode Island that trust companies,as distinct from State banks, are eligible tosubscribe to stock in a Federal reserve bank.

The following opinions of counsel for theFederal Reserve Board have been authorizedfor publication by the-Board'since'the lastedition of the Bulletin:

Surrender of Stock by a Member Bank Reducing ItsSurplus.

The Federal reserve act does not require that a memberbank necessarily surrender a proportionate part of its stockin the Federal reserve bank of which it is a member whenit reduces its surplus. 'Such surrender is left to the dis.cretion of the Federal reserve bank, subject to the ap-proval of the Federal Reserve Board.

JUNE 17, 1915.SIR: The question has been raised whether a

member bank which reduces its surplus is re-quired by law to surrender a proportionateamount of the stock held by it in the Federal

reserve bank of its district, or whether suchFederal reserve bank may, at its option, permitthe stock representing 6 per cent of such de-crease in surplus of a member bank to remainoutstanding.

The Federal reserve act provides hi section 2that—

Every national banking association * * *shall be required * *. * to subscribe to thecapital stock of such Federal reserve bank in asum equal to 6 per cent of the paid-up capitalstock and surplus of such bank.

Section 5, in providing for the admission ofa bank after the organization of the system,contains a provision that such a bank—

Must subscribe for an amount of the capitalstock of the Federal reserve bank equal to 6per cent of the paid-up capital stock and sur-plus of said applicant bank.

It is to be noted that in both of these sectionsan applying bank must subscribe for an amountequal to 6 per cent of its capital stock and sur-plus.

Section 5 further provides that—"When a member bank increases its capital

stock or surplus it shall thereupon subscribe foran additional amount of capital stock,"

It is thus clear that when a member bankincreases either its capital stock or its surplusit must subscribe for additional stock. Thisconclusion is corroborated by the requirementthat the outstanding capital stock of a Federalreserve bank " shall be increased from time totime as member banks increase their capitalstock and surplus/'

In dealing with the question of reduction inthe capital stock of a Federal reserve bank,however, the act contains no mandatory pro-vision for decrease of such stock on account ofreduction hi the surplus of a member bank.The specific language used in section 5 in refer-ence to this subject is as follows:

The capital stock of each Federal reservebank shall be divided into shares of $100 each.The outstanding capital stock shall be increasedfrom time to time as member banks increasetheir capital stock and surplus or as additional



banks become members, and may be decreased !as member banks reduce their capital stock orsurplus or cease to be members.

This section further provides that—When a member bank reduces its capital

stock it shall surrender a proportionate amountof its holdings in the capital stock of said Fed-eral reserve bank.

A distinction is therefore made between thereduction of the capital stock and the reduc-tion of the surplus of a member,bank.

An examination of the bill as it passed theHouse shows that stock of Federal reserve bankswas to be increased only on account of an in-crease in the number of member banks, or onaccount of an increase in the capital stock ofmember banks, and was to be reduced on ac-count of decrease in the number of memberbanks or a decrease in the capital stock of suchbanks.

In the Senate this section was amended so asto require an increase of the capital stock ofFederal reserve banks whenever member banksincreased either their capital stock or surplus,but this amendment did not specifically requirea Federal reserve bank to reduce its capitalstock whenever the surplus of a member bankis reduced. That part of the section abovequoted which makes such decrease discretionarywith the Federal reserve bank was added bythe Senate committee and was adopted in theconference agreement.

I t seems reasonable to assume, therefore, thatCongress contemplated that a reduction in thesurplus of a member bank might be merelytemporary and accordingly vested a discretionin the Federal reserve bank to cancel a propor-tionate amount of the capital stock held by amember bank the surplus of which is reduced,or to permit such stock to remain outstanding.

I am, therefore, of the opinion that the Fed-eral reserve banks may, with the approval ofthe Federal Reserve Board, legally exercise thisdiscretion.

Respectfully,M. C. ELLIOTT, Counsel.

To Hon. CHARLES S. HAMLIN,Governor Federal Beserve Board.

Rediscount of Drafts Payable on Condition.A draft made "payable on arrival of car" is nonnegoti-

able, not being payable at a doterminablo future time,and is therefore ineligible for rediscount by a Federalreservo bank.

FEBRUARY 23, 1915.

SIR: The question has been raised whetherdrafts "payable on arrival of car" are eligiblefor rediscount by Federal reserve banks.

Section 13 of tho Federal reservo act pro-vides that any Federal reserve bank may dis-count "notes, drafts, and bills of exchangearising out of actual commercial transactions,1*and, though this language does not in expressterms demand that the paper be negotiable, itmust bo so construed because of tho wholespirit and purpose of the act.

The act evidently contemplates that title toeligible paper must pass with it and that inevent of nonpayment a Federal reserve bankmust be able to sue in its own name on suchpaper. To secure these rights the paper mustbe negotiable, otherwise the transfer would con-stitute a mere assignment and the holder wouldhave to sue in the name of the payee. It mustalso be noted that if the paper is not negotiablea Federal reserve bank rediscounting it wouldhold it subject to the equities existing betweenthe original parties to the bill. The same limi-tations would be imposed on the Federal reserveagent holding such paper as security for Fed-eral reserve notes. The natural constructionof the act, therefore, is that paper must be nego-tiable in order to be eligible for rediscount.

The question here presented is whether adraft "payable on arrival of car" is negotiable.A draft to be negotiable must be an uncondi-tional order to pay to the bearer or order a defi-nite sum of money on demand or at a deter-minable future time. The drafts referred toabove do not seem to comply with these condi-tions. Should the car fail to arrive, for anycause whatever, the draft would not be pay-able. The event or contingency upon whichpayment depends must be one which must nec-essarily happen in the natural course of thelaws of nature. (Weidler & Carpenter v.Kauffman, 14 Ohio, 455.)


220 FEDERAL RESERVE BULLETIN. ADGDSX 1,1915.

The negotiable instruments law, section 4,which is based on settled decisions, providesthat—

An instrument is payable at a determinablefuture time, within the meaning of this act,which is expressed to be payable—

(3) On or at a fixed period after the occur-rence of a specific event, which is certain tohappen, though the time of happening be un-certain.

In the case of Colehan v. Cooke (Willes, 393),a note payable ten days after the death of themaker's father was held good on the groundthat the father must die at some time and pay-ment, therefore, was not dependent on thehappening of an event which might fail tooccur. But in the case under consideration—that is, drafts "payable on arrival of car"—there is no certainty whatever that the carwill arrive, and such paper would probably beheld to be nonnegotiable on two grounds:First, that it is not an unconditional promiseto pay; and second, that the time of paymentis not fixed and certain, because of the factthat the event by which it is determinableneed not necessarily ever occur.

In all the cases examined on this point thereseems to be only one exception to this generalrule, that the note or bill must be payableat all events. That case is an English onedecided some time ago. (Andrews v. Franklin,1 Strange, 24.) A note payable two monthsafter a certain ship was paid off was heldnegotiable even though the event was notnecessarily bound to occur. The court inthis case, however, admitted that paying offthe ship was a contingency which wouldordinarily make the note nonnegotiable, butwent on to explain that because this ship wasa Government one, the payment was a Gov-ernment obligation which must be performed.But even on this ground, the case has alwaysbeen discredited by courts in which it hasbeen cited.

It seems, therefore, that a note or draft"payable on arrival of car/7 which may ormay not arrive, would very probably be held

nonnegotiable, both at common law and underthe Negotiable Instruments Law.

Respectfully,M. C, ELLIOTT, Counsel.

To Hon. C S, HAMLIN,Governor Federal Reserve Board.

Payment of Dividends by Federal Reserve Banks.Federal reserve banks should not at this time undertake

to pay semiannual dividends or to carry any profits tosurplus account before the end of the fiscal year.

JlTNE 25, 1915.SIR: The question has been raised whether a

Federal reserve bank may declare a dividendas of June 30, at the rate of 6 per cent perannum, for the time elapsed between November16, 1914, and June 30, 1915.

It appears from the provisions of section 7of the Federal reserve act that Congress in-tended that dividends should be paid annuallyand not in semiannual instalments. It is con-ceivable that a bank might show a surplus asthe result of the first six months' operations anda loss for the last six months. If, therefore, adividend should be declared at the end of sixmonths an impairment of capital might beshown according to the books at the end of theyear which would not have resulted except forthe payment of the dividend.

After the dividend has been paid and therequired amount has been carried to the surplusaccount, the balance of earnings resulting fromthe year's operations is payable to the UnitedStates as a franchise tax. The amount ofthis tax can not be determined until the end ofthe year. Banks should, therefore, carry allnet earnings in the account of UndividedProfits until the end of the fiscal year andshould then declare a dividend, and the balance,if any, should be paid half to the United Statesas a franchise tax and half into the surplusfund, as provided by section 7.

When the banks have been in operation fora sufficient length of time to enable them toestimate with reasonable accuracy their annualearnings and expenses, the Board might, in case


AUGUST 1, 1915. FEDEEAL RESERVE BULLETIN. 221

the Undivided Profit Account shows a sufficientamount to cover all contingencies, authorizethe payment of the dividend in semiannualinstalments, but until that time the letter ofthe statute should be followed strictly in orderto avoid probable complications.

Respectfully,M. C. ELLIOTT,

Counsel.To Hon. C. S. HAMLIN,

Governor, Federal Reserve Board,

Interpretation of Regulation F» Series 1915.The term "taxable property" as used in Regulation

F - I - ( c ) - 3 7 Series 1915, includes franchises in caseswhere such franchises are actually taxed upon the valua-tion set forth in the municipality's return of taxableproperty.

That part of section 14 which provides that "revenuebonds * * * with a maturity from date of purchaseof not exceeding six months" may be purchased, contem-plates that such bonds might at the date of issue have amaturity of longer than six months. Bonds are eligiblefor purchase under this Bection if at the time of issue pro-vision is made for the establishment of a redemptionfund which will be sufficient and available for the pay-ment of the bonds at maturity, provided, of course, thatat the time of purchase the bonds have not more than sixmonths to run.

Certified copies of opinions of counsel on municipalissues may be used by Federal reserve banks under theprovisions of this regulation irrespective of which bankobtained the original opinion.

FEBRUARY 9, 1915.SIR: The following questions have been

referred to this office by the Board for anopinion:

(1) Under regulations F-(I)-(c)-3, doesthe term "taxable property" include fran-chises where such franchises are actually taxedupon the valuation set forth in the city's returnof taxable property %

(2) Under section 14 of the Federal reserveact, subsection (6) where the Federal reservebank is authorized to "buy and sell * * *bilk, notes, revenue bonds and warrants witha maturity from date of purchase of notexceeding six months/' does this languagepermit the purchase of bonds having longmaturities but which are acquired by a Federal

reserve bank within six months of the date ofmaturity; and if so, under what circumstancesmay such purchases be made ?

In answer to question (1), regulation Freads in part as follows:

I. A. Federal reserve bank may purchasesuch warrants as are issued by a munici-pality. * * *

(c) 3. Whose net funded indebtedness doesnot exceed ten per centum of the valuation ofits taxable property, to bo ascertained by thelast preceding valuation of property for theassessment of taxes.

This provision is not contained in thestatute but is a matter of regulation. Thelanguage to be construed is accordingly that ofthe Board, and it is within its discretion todetermine whether or not the term "taxableproperty" shall include franchises.

The courts have generally construed a fran-chise to be property subject to taxation and sogiving the language "taxable property" itsordinary interpretation it would seem clearthat franchises which are actually taxed andwhich are included in the city's return of taxa-ble property should be taken into considera-tion in determining the net funded indebted-ness as provided in Regulation F*

In the case of the West River Bridge Com-pany v. Dix et al (6 How. (U. S.), 507-533),the court said:

A franchise is property, and nothing more:it is incorporeal property, and is so definedby Justice Blackstone when treating in hissecond volume. (Ch. 3, p. 20) of the Rights ofThings.

In the case of Society for Savings v. Coite (6Wall (U. S.), 594-606), the court holds thatthe franchise of a private corporation is a le-gitimate subject of taxation. This doctrine isaffirmed in the case of Provident Institution v.Massachusetts (6 Wall (U, &), 611-623), andagain in the case of Hamilton Company v.Massachusetts (6 Wall (U. S.), 632-638).

In answer to the second inquiry submitted,the act provides that "revenue bonds * * *with a maturity from date of purchase of notexceeding sLx months" may be purchased.The provision that such bonds must mature



within six months from the "date of purchase"clearly indicates that Congress contemplatedthat such bonds might have a maturity oflonger than six months at the date of issue.

It is true that the term "revenue bonds" issometimes construed to refer to short-termbonds or warrants issued by municipalities todefray expenses for a short period prior to thecollection of taxes.

The word "revenue," however, does not ofitself limit the term of a bond to that of a fixedmaximum maturity but instead refers to thecharacter or nature of the bond rather than tothe time of its maturity.

In other words, giving the language its ordi-nary interpretation, it would seem merely toindicate bonds of any maturity, payment ofwhich is guaranteed out of the collection oftaxes or assured revenues.

The act specifically provides that such bondsmust be issued in anticipation of the collectionof taxes or assured revenues, but does notprescribe how long in advance of collection ofsuch taxes the bonds may be issued. Theprovisions of the act would seem to be com-plied with if at the time of issue provision ismade for the establishment of a redemptionor sinking fund which will be sufficient andavailable for the payment of the bonds atmaturity and at the time of their purchasethey may be said, by reason of such sinkingfund, to be self-liquidating at the expiration ofsix months.

It i3, of course, understood that all otherprovisions of regulation F, series 1915, mustbe complied with before such bonds may bepurchased.

In this connection I beg to call attention toParagraph VI, regulation F, which is as follows:

"Opinion of recognized counsel on municipalissues or of the regularly appointed counsel ofthe municipality as to the legality of the issueshall be secured and approved in each case bycounsel for the Federal reserve bank,"

The Board has ruled that where such opinionshave been procured and approved by counselfor a Federal reserve bank, any other Federalreserve bank shall be deemed to have complied

with the requirement of this paragraph if itsecures a certified copy of such opinion andapproval.

Respectfully,(Signed) M. C. ELLIOTT,

Counsel*To Hon, CHARLES S, HAMLIN,

Governor Federal Reserve Board.

Interpretation of Clayton Act.

The counsel of the Federal Reserve Boardhas prepared the following opinion in answerto a number of letters received by the Boardand referred to him for consideration whichinvolve an interpretation of section 8 of theact approved October 15, 1914, and generallydescribed as the Clayton Act.

While the provisions of section 8 do not,under the terms of the act, become operativeuntil two years from the date of its passage—-that is to say, until October 15, 1916—itappears to be necessary for the banks to ob-tain rulings on certain questions in order toarrange for the personnel of their boards ofdirectors after this time.

The two questions which are the subject ofmost of the letters referred to are as follows:

(1) If a director of a national bank havingdeposits, capital, surplus, and undivided profitsaggregating more than $5,000,000 is elected atthe annual meeting in January, 1916, may he,without violating section 8 of the act referredto, continue to serve until January, 1917, andat the same time serve as a director of anothernational bank ?

(2) Can a director of a State bank or trustcompany having deposits, capital, surplus,and undivided profits aggregating mork than$5,000,000 serve after October 15, 1916, a3 adirector of another State bank or trust com-pany which is a member of a Federal reservebank?

Both of these questions involve a considera-tion of that part of section 8 of the act referredto which reads as follows:

That from and after two years from the dateof the approval of this act no person shall at thesame time be a director or other officer or em-ployee of more than one bank, banking associa-


AUGUST 1,1915. FEDERAL KESEBVE BULLETIN. 223

tion or trust company, organized or operatingunder the laws of the United States, either ofwhich has deposits, capital, surplus, and undi-vided profits aggregating more than $5,000,000;and no private banker or person who is a di-rector in any bank or trust company, organizedand operating under the laws of a State, havingdeposits, capital, surplus, and undivided profitsaggregating more than $5,000,000 shall be eligi-ble to be a director in any bank or bankingassociation organized or operating under thelaws of the United States. The eligibility of adirector, officer or employee under the fore-going provisions shall be determined by theaverage amount of deposits, capital, surplus,and undivided profits as shown in the officialstatements of such bank, banking association,or trust company filed as provided by law dur-ing the fiscal year next preceding the date setfor the annual election of directors, and whena director, officer, or employee has been electedor selected in' accordance with the provisionsof this act it shall be lawful for him to continueas such for one year thereafter under saidelection or employment.

This act became a law on October 15, 1914.As above shown, it provides in terms that aftertwo years from that date (that is to say, Oct.15,1916) "no person shall at the same time be adirector * * •* of more than one bank * * *organized or operating under the laws of theUnited States, either of which has deposits,capital, surplus, and undivided profits aggre-gating more than $5,000,000/' This languageis free from ambiguity and makes it entirelyclear that after October 15, 1916, a person who

-is a director of a bank with aggregate resourcesof more than $5,000,000, organized or oper-ating under the laws of the United States orunder the laws of any State, shall be ineligi-ble to serve as a director of any other bankorganized under the laws of the United States.

In determining whether a bank has aggregateresources of more than $5,000,000, the actprovides that the aggregate amount of depositscapital, surplus, and undivided profits of suchbank, as shown in the official statement filedduring the fiscal year next preceding the dateset for the annual election of officers, shall betaken as a basis, and then provides that—

When a director has been elected in accord-ance with the provisions of this act it shall be

lawful for him to continue as such for one yearthereafter under said election or employment.

The obvious purpose of this provision is topermit a director to serve out his term if thebank has aggregate resources of less than85,000,000 at the time of his election butsubsequently the resources are increased to anamount in excess of §5,000,000.

It has been suggested that by reason of thisprovision directors elected in January, 1916,may continue to serve until January, 1917,although they would be ineligible if elected afterOctober 15,1916. It will be observed, howeverthat the language quoted is "a part of the samesentence which fixes the time for calculatingthe aggregate resources of the bank in order todetermine the eligibility of such director, andfollowing the ordinary rules of interpretationof statutes it is necessary to consider the con-text in order to determine when a directorhas been elected in accordance with the pro-visions of the act.

Considering this sentence as a whole it seemsclear that if a bank has aggregate resources ofmore than $5,000,000 on January 1, 1916,the stockholders are charged with notice thatafter October 15, 1916, a director of such bankwill be ineligible to serve on the board of anyother bank organized or operating under thelaws of the United States.

While Congress manifestly intended to givebanks two years from the date of the passageof the act to adjust the personnel of theirboards of directors in order to conform to therequirements of the act referred to, it isequally manifest that it did not intend toallow more than two years for this pur-pose and the first question should, in theopinion of this office, be answered in thenegative.

The determination of the second questiondepends upon the construction to be placedupon the language "organized or operatingunder the laws of the United States."

As above shown, a person who is a directorof a national bank, State bank, or trust com-pany having aggregate resources of more than$5,000,000 is ineligible to serve on the board


224 FEDERAL KESEBVE BULLETIN. AUGUST 1,1915.

of directors of another bank organized oroperating under the laws of the United States.

State banks and trust companies are organ-ized under the laws of the State in which theyare incorporated and exercise those corporatepowers which are granted them by the lawsof the State, or which are incidental to thepowers thu3 granted. In a certain sense,therefore, they may be said to be both organ-ized and operating under the laws of theState. On the other hand, when such banksbecome members of the Federal reserve sys-tem they subject themselves to certain Federallaws. For example, they must maintain re-serve required by the Federal reserve act; theyare subject to examination and supervision byFederal authorities, and must conform tocertain laws relating to investment of theirfunds. Accordingly, they may be said tobe operating under both State and Federallaw.

Congress has specified certain requirementsto which State banks and trust companies mustconform as a condition of membership in theFederal reserve system. It is, therefore, neces-sary to determine whether it was the intentionof Congress, by section 8 of the Clayton Act, toprovide as a further condition of membershipin the Federal reserve system, that the direc-torates of such banks shall not include any per-son who is a director of another bank havingaggregate resources of more than $5,000,000.

From an examination of the original bill in-troduced by Mr. Clayton on April 14, 1914, it

appears that the section above quoted origi-nally read as follows:

That from and after two years from the dateof the approval of this act no person shall atthe same time be a director * * * of morethan one bank * * * organized and oper-ating under the laws of the United States, eitherof which has deposits, capital, surplus and un-divided profits aggregating $2,500,000

In the amended bill of May 6, 1914, the lan-guage " organized and operating under the lawsof the United States" was changed to read "or-ganized or operating under the laws of theUnited States" and this language was retainedby the Senate, by the conferees and in the actas it became a law. The use of the word "or"in place of the word lt and" is, therefore, signifi-cant, and in order to give it a reasonable mean-ing it is necessary to conclude that Congressintended this provision to apply to State banksand trust companies which, though organizedunder State law, operate under the laws of theUnited States when they become members ofthe Federal reserve system, as well as to na-tional banks which are organized and operateunder the laws of the United States.

In the opinion of this office, therefore, aperson who is a director or other officer of abank having aggregate resources of more than$5,000,000 will be ineligible to serve on theboard of directors of a State bank or trust com-pany which is a member of the Federal reservesystem after October 15, 1916.

Both questions should, accordingly, be an-swered in the negative.



GENERAL BUSINESS CONDITIONS.

General business and banking conditions aredescribed in reports made by Federal reserveagents for the 12 Federal reserve districts.

Below are given in detail digests of condi-tions in the various districts substantially asreported by Federal reserve agents.

DISTRICT NO. 1—BOSTON.

There is little change in this district over lastmonth. While the business situation, both inbusiness and financially, is in a healthy con-dition, there is a general hesitancy, due to theunsettled conditions produced by the war inEurope.

Although money continues to accumulate inthe large cities and is freer in the country dis-tricts, banks are disinclined to put out moneyat the low prevailing rates, the feeling beingthat as the crop-moving time approaches therewill be a better demand for money and an im-provement in rates. There seems to be a gen.eral feeling that rates have touched bottom andthat from now on an improvement may be ex-pected. General business, except in a fewlines, is dull, and orders are not coming in asfreely as heretofore. No accumulation of goodsis reported in any of the lines, and the highprice of staples especially in leather and wool̂and the unwillingness of the merchants toincrease their merchandise is responsible, nodoubt, for much of the dullness. This is es-pecially noticeable in the trades using wooland leather. Business seems to be waiting, butthereis a feeling of optimism, and it is believedthat from now on an improvement may be ex-pected, though perhaps a very slow one. Theunseasonable weather and the abundance ofrain have no doubt also had their effect. Thesummer resorts, both seashore and mountain,complain of dull business.

Money conditions are about the same as lastmonth, with perhaps a slight hardening. Thereis very little demand for money and rates con-tinue very easy—call money to brokers, 3 percent; commercial paper, 3J to 4J per cent;loans to correspondents, 3£ to 4 per cent; town

notes, 2J to 2£ per cent; bank acceptances, 2\to 2$ per cent; excess reserve in Boston banks,$45,974,000, an increase of $10,105,000 overlast month and an increase of $36,008,286 overthe same date last year.

The cotton mill situation in New Bedfordand other fine-goods centers continues good.On the other hand, the reports from Fall Riverare not quite as satisfactory as before and thecotton mill situation is slightly duller, owingto the fact that mills hesitate to buy cotton toany extent, and accumulate goods. Theshoe and leather trade, while reporting fewerforeign orders, shows a slight improvement ingeneral. The high price of leather has nodoubt deterred dealers from placing theirusual seasonable orders, but most of the manu-facturers feel that the conditions are certain toimprove. The wool and woolen trade is dull.Here again the high price of wool has been adeterrent feature. Wool dealers, for the mostpart, have made considerable money duringthe past season, and are disinclined to replenishtheir stock at present prices and the price ofthis staple is no doubt affecting the mill situa-tion as well as the goods, and a hand to mouthpolicy of buying is the rule.

Imports and exports to July 1 comparedwith a year ago are as follows:Exports first six months:

1914 ." $30,282,0751915 65,792,193

Imports first six months:1914 $99,439,1881915 89,139,744

Building operations up to the 1st of July ascompared with the preceding years are as fol-lows:Contracts awarded to date, June 30:

1915 $85,111,0001914 89,212,0001913 86,174,000

DISTRICT NO. 2—NEW YORK.

Reports from bankers in New York andnorthern New Jersey state that crops lookvery well and promise large yields, but insome sections the hay crop will be under aver-age, due to wet weather. The dairy business


226 FEDERAL EESEBVE BULLETIN. AUGUST l , 1915,

continues good. Some complaints have beenreceived of slackness in retail trade and un-satisfactory collections. Manufacturing insteel, leather, and textile lines shows improve"ment. Great activity continues in the pro-duction of supplies for shipment to EuropeBuilding operations are curtailed and depres-sion is still evident in lumber, foundries, im-plement works, and silk mills. Strikes thatwere referred to a month ago are still on insouthern and northern districts. Depositsgenerally are large, but in most sections thedemand for loans is very light.

During June the usual mid-year inventorytime dullness prevailed in New York City.Improvement in retail trade has been re-ported recently. Wholesale houses state thatcollections are very satisfactory. More activeand firmer markets have developed, largelyfrom foreign orders, in such lines as steel, coal*leather, and wool. Purchases of cotton goodsare restricted by the weakness in the price ofraw cotton. Labor is more fully employedand there are strikes in some branches of theclothing trade. Real Estate agents reportconditions better than a year ago and improvedover the preceding month. Renting is moreactive, especially in the large office buildings.A comparison of various statistics for June,1915, with June, 1914, shows the followingchanges: Exchanges through the New YorkClearing House, $8,025,481,549, a gain of$181,278,782; building permits, 37 to cost83,290,330, an increase of 5 in number and adecrease of 3103,320 in amount; shares soldon the New York Stock Exchange, 10,900,000,an increase of 6,916,000 over a year ago, buta decrease of 1,821,000 from the precedingmonth; transactions in bonds on the exchangeamounted to $57,824,000, an increase of54,330,000 over a year ago, but a decrease of$6,800,000 from the preceding month; newincorporations, $80,091,100, an increase of$34,089,000; failures, 241, for $2,018,881, adecrease of 15 in number and $13,508,090 inamount. Since January 1 exports from theport are $684,497,674, against $483,485,183;

imports, $488,161,854 against $523,152,001.The latest compilation of railroad earningsshows a gain in May, 1915, over May, 1914, of$1,324,785 gross and $14,619,397 net.

From June 1 to July 18 the New York clear-ing house banks' loans increased $115,941,000,deposits increased $163,881,000, and excessreserves decreased $13,877,000, The marketrates for money have remained easy and prac-tically unchanged since the middle of June.Bankers7 acceptances command slightly easierrates of 2tV to 2f per cent and the supply islighter. Prime commercial paper is in greatdemand, with light offerings at 3 J to 4 per centwith occasional sales at 3 per cent. The largeimport movement of gold practically stoppedwhen the special deposits were moved fromOttawa. Sterling and continental bills of ex-change declined to new low levels, quotationsfor checks touched 4.7625, 5.62}, and 81.50 forsterling, francs, and marks, respectively. Rateshave been stronger and steadier during the pastweek. The London discount rate has in-creased and is now 5J per cent, as against 2Jper cent on June 1,

DISTRICT NO, 3—PHILADELPHIA.

The most striking feature of the businesssituation in this district is the absence of en-couraging reports on conditions in Philadel-phia, contrasted with the reported improve-ment in conditions throughout the rest of thedistrict.

In the Philadelphia vicinity business indomestic lines is dull and below normai.Almost no improvement is perceptible ov:rlast month. A spirit of caution and hesitationexists. The outlook is uncertain, due per-haps to uncertainty regarding the businessfuture of certain standard industries when thewar shall have been terminated.

In many specialized lines, such as the ironand steel industry, abnormal conditions con-tinue because of foreign demand. New plantsare being built, new machinery installed, andseveral towns are experiencing boom times.As a result, the number of men out of employ-



merit has been greatly reduced, and retail tradehas increased accordingly. The exports of theport of Philadelphia are increasing, and bankclearings are higher than for several monthspast. Perhaps the best feature of the businesssituation in Philadelphia is the shipbuildingindustry, which is operating at full capacity.

In sections of this district outside of Phila-delphia business conditions are slowly improv-ing, and some sections are reported as prosper-ous. Agricultural conditions are generallyfavorable, although in some sections wherecrops are good prices are low. Manufacturinglines are improving and are doing relativelybetter than retail lines. Railroad shops havenot yet recovered from the industrial depres-sion, although some progress is reported. In-creased numbers of loaded freight cars aremoving and a decrease is shown in the numberof idle cars and good order cars. The anthra-cite coal output is below normal. Machinery,boiler, and foundry concerns are doing well.Leather continues strong, especially as to theheavier grades. Improvement is reported inmost textile lines, although the dyestuffs situa-tion is still critical.

Rates for money are abnormally easy, withno evidence of any tendency to harden. Mostbanks are carrying large excess balances ofunemployed funds, which they are unable toloan in ways which are satisfactory to them.The purchase of commercial paper by thebanks is restricted because prime commercialpaper at satisfactory rates is scarce, and newnames of the better grade are not appearing inthe market to any extent. Purchases of paperare being made at from 3 to 4 per cent, withthe most active market at 3£ per cent. Thereis very little demand for either call loans ortime loans with collateral, the rates for bothclasses of loans being 3 J to 4 per cent.

DISTRICT NO. 4—CLEVELAND.

The steel business, both in unfinished prod-ucts and finished materials, has made a decidedadvance since last month's report. This

industry (the most important in* the district)began to show a change about the middle oflast December, and reached its full forcewithin the last three or four weeks. The tin-plate industry is» especially flourishing, inas-much as the supply of canned goods was veryquickly exhausted by the war demand. Gen-erally speaking, all steel mills are runningpractically full, with order books filled forseveral months ahead. Steel men predictmaximum operations for the rest of this year,and at satisfactory prices. Semifinished andfinished lines have steadily improved in priceuntil they are now -35 per ton above the lowestpomt reached during the depression of 1914.

Coke business is much better because of thestarting up of so many furnaces. Coal busi-ness is improved somewhat owing to ship-ment of coal to the lakes for consumption inthe Northwest next winter. Prices still ruleunsatisfactory. The lumber business is farfrom normal either in production or price.

The damage done to crops by excessive rainsand floods has not been great, except in thesouthern part of the district, where theremay be considerable reduction in the wheatand tobacco yield.

The mercantile trade has not yet felt thenew impetus to business, but improvement isnoted in seasonable lines, and a distinctlybetter feeling prevails both among wholesaleand retail merchants. Manufacturers supply-ing the building trades report business onlyfair.

Continued ease of money is apparent through-out the district. July 1, the usual interestdate for savings accounts, witnessed lighterwithdrawals than other corresponding periodsfor several years.

Underlying conditions are healthy, due to thefact that concerns are not carrying largestocks, have passed through a period ofenforced liquidation, resulting in putting vari-ous economies into effect, and altogether thereis a marked improvement in the industriesupon which this district depends.


228 FEDERAL EESEEVE BULLETIN, AUGUST 1,1915.

DISTRICT NO. 5—RICHMOND.

In this district during July wheat and oatshave been harvested at prices which, if lowerthan the fancy figures which prevailed lastfall, have permitted substantial profit to thefarmer. Planters who were moved to cut cottonacreage in favor of these cereals should besatisfied with the result of the experiment.Wheat at SI. 10 and oats at 60 cents, bothsold, should look better, certainly at the mo-ment, than cotton awaiting the possibilitiesof an unknown future three months distant.Packers* seasonal truck has brought prices un-satisfactory to the grower, as canners carryinglarge stocks from the pack of last year haveentered the market only on their own terms.Potatoes, heavily overgrown, are finding lowprices.

Cotton, a little late, is in excellent condition,but softening prices are not comforting to theplanters, who, however, this year will have attheir command better facilities for financingthe crop than heretofore have been offered.Building undertakings generally are limited torepair or smaller operations, and related linesare dull. Retail trade is very quiet, reflectingboth unusual economy practiced by the publicand general midsummer dullness. Coal seemsto be in somewhat better position both withrespect to movement and price. Banks intliis district are experiencing a somewhat betterdemand for credit for use in meeting usualseasonal needs for expenses pending maturityof the larger staple crops.

While this demand is apt to continue duringAugust and September, it will be well scatteredand its aggregate amount should not be great.Business viewed as a whole is just about hold-ing a steady position, which probably is allthat can bo expected at this season.DISTRICT NO. 6—ATLANTA.

Marked conservatism is characteristic in thecommercial and industrial affairs of the SixthFederal Reserve District, but with an optimis-tic tone. While there is a tendency to improve-ment, conditions do not show any materialchanges as a whole during the month of July. I

The opening of the Warrior River, affordingcheaper rates of transportation to the Birming-ham district and the Gulf, has given an impetusto trade development in coal, ores, and cement,and the stiffening in the price of pig iron iscausing an increase of activity in that district.While the improvement of financial facilitiesfor handling the crop has somewhat stimulatedtrade, forward buying by merchants and thelarger movements of trade appear to be await-ing development as to the disposition and priceof cotton.

Cotton mills are running to full capacity anda number of new mills are reported under con-struction. Many of the mills are filled withrush orders for khaki cloth and tent material.

Building operations throughout the districtcontinue below normal, but there has been aconsiderable improvement during July as com-pared with preceding months. The railroadsreport good passenger travel, with little or nochange in freight traffic.

The Atlanta post office reports a falling off of5 per cent in receipts for the year ending June30, 1915, as compared with the year endingJune 30, 1914.

Agricultural prospects are reported exceed-ingly bright. Cotton is in fine condition, andthe States in this district will produce a remark-ably large grain crop. Reports indicate a70,000,000-bushel increase in corn, wheat, andoats, with an increase in the rice crop of ap-proximately 5,000,000 bushels.

DISTRICT NO. 7—CHICAGO.

General business conditions in this districtcontinue to show 3ome signs of improvement.Distinct improvement is noticeable in variouslines that are benefited by foreign demand.The war and the uncertainty incident theretocause hesitation and caution and are responsiblefor less noticeable increase in other lines andentire absence of improvement in some. Thesettlement of the strike in the building andconstruction trades at Chicago, the more sea-sonable weather conditions, magnificent har-vest prospects, and easy money, all make forgood basic conditions.



Noticeable progress, due to orders for crudeand finished products of the furnaces, mills,and factories, is seen at Gary, South Chicago,Pullman, Chicago Heights, Moline, Sioux City,Indianapolis, South Bend, Detroit, and GrandEapids. This is due not merely to "warorders/' but to the demands of railroads andother interests.

The general merchandise market has shownimprovement, although affected by the delayedarrival of warm weather.

Commercial paper rates remain at lowfigures—3J to 4 per cent.

DISTRICT NO. 8—ST. LOUIS.

There has been little change in general busi-ness conditions in this district during the monthof June. The business of wholesale interestsdealing in what may be called the necessitiesof life remains below normal, but the volumeof unfilled orders on hand is more nearly nor-mal and is an indication of an improvementthis fall. The manufacturing interests appearto be in much the same condition as the gen-eral jobbing interests, with the exception ofthose companies whose product is available forexport where an increased activity is noted.Failures in this district show an appreciablefalling off for the second quarter of 1915.ascompared to the first quarter.

The rainfall for June was considerably abovethe normal, but does not seem to have mate-rially affected agricultural development except-ing in the lowlands subject to overflow, wheredamage has been reported. Reports indicatethat the wheat crop will be larger than the five-year average and the immediate return of sea-sonable weather would seem to insure a goodharvest. The cool weather and continued rainsin June may have retarded the cotton crop, butseasonable weather from now on would seemto insure its favorable development. Reportsindicate a reduction of 12 to 18 per cent in thecotton acreage in the States within this dis-trict. Reports on the corn, oats, and haycrops indicate that there has been little or nodamage done by the rainy season. Corn, ex-cepting in the overflowed land, has grown rap-

idly, and seasonable weather from now on willallow the necessary cultivation and insure asuccessful harvest. The rain in June has causedthe tobacco plants to grow rapidly and indica-tions are that the crop will be coarser than isdesirable. Small-fruit crops appear to havesuffered more damage from rain than the otheragricultural products. The live-stock marketin this district shows the same activity whichwas noted in the April and May reports.

There has been little change in bankingconditions in this district. Current rates fordiscounts remain below the normal and moneycontinues plentiful. There is a scarcity ofcommercial paper of the best names at a rateto tempt the bankers.

General business conditions show little changein the past 30 days. Conditions have notimproved as rapidly as indications would seemto warrant, and from present appearancesimprovement will be slow until after theharvest.

DISTRICT NO. 9—MINNEAPOLIS.

No important changes have occurred duringthe past 30 days, except a gradual strengthen-ing of confidence in the crop outlook, whichhas developed a more active demand for moneyduring the past two weeks. The leadingcommercial banks are of the opinion that if thecrops suffer no damage, this demand will be-come quite active within a very short time,continuing through August.

From the Great Lakes to the eastern slopeof the Rocky Mountains the condition of thesmall grain crop is excellent, with the excep-tion that rye has suffered damage in NorthDakota, and that theie has been some damageto wheat, due to excessive moisture, on theheavy soils of the Red River Valley and otherdistricts. The season has been one of unusualrainfall but the damage to grain on the heaviersoils due to this cause will be considerably morethan offset by unusually good yields in partsof the district where a large acreage of grainhas been planted on the higher and lightersoils. Montana probably never had a bettercrop outlook at this season of the year. With


230 FEDEEAL KESEEVE BULLETIN. AUGUST 1,1915.

the exceptions already noted, the same is trueof North Dakota and Minnesota.

A highly profitable element in the cropproduction of the ninth district is hay andforage, which under normal conditions shouldamount to about 25,000,000 tons. This sea-son has been unusually favorable to the heavygrowth of grasses and alfalfa, and the cropthat is now being cut will probably run con-siderably above the normal yield and willshow an unusually heavy tonnage at goodprices. Minnesota and Wisconsin are theleading western States in potato production,normally affording a yield of from 60,000,000to 65,000,000 bushels. The potato crop showsan increased acreage this year and is makingan excellent growth, with the prospect ofvery heavy yields. July has brought somebreak in the continued cool and rainy weather,with an improvement in corn prospects,although it is beginning to be realized thatcorn wiU not be an average crop this year andthat there is considerable doubt whether agood deal of it will have opportunity to fullymature. The agricultural colleges are advis-ing the storing of corn from the 1914 cropfor 1916 planting, fearing that this year'syield may not have the proper germinatingqualities. A very beneficial effect of the pros-pect that of a corn crop, only poor to fair, hasbeen a decided increase of activities on thepart of farmers in constructing silos. ShouldAugust weather prove unfavorable, manyfarmers will cut their corn for ensilage andfeed it.

There has been a decrease during the pastmonth in the amount of idle labor. Theactivities in the copper districts of northernMichigan and Montana have had a beneficialeffect in this respect, and the month has wit-nessed heavier shipping orders at the northernMinnesota iron mines, thus improving laborand business conditions in that district. Thepresent outlook is for heavy ore shipments forlower lake ports during the remainder of theseason.

Retail merchandising over the district isabout normal, with collections fair. The

wholesale trade at the large centers is in goodcondition. The only lines in which there isnoticeable depression are in lumber, bothwholesale and retail, and certain lines ofmanufacturing. Many industrial plants areshowing an increased volume of orders and animproved activity. The agricultural outlookover the district is excellent, and the businesssituation, generally speaking, is good, althoughquiet. The best opinion seems to agree thatif present conditions continue the fall monthswill bring a period of very active trade withconsiderable prosperity to the entire district.

DISTRICT NO. 10-KANSAS CITY,

Although some sections of district No. 10have been visited with wind, flood, and otherstorm damage while other sections are in needof rain, yet, as a whole, agricultural and horti-cultural conditions are about normal. Theharvest yield will be less than last year's figures,but the record of 1914 was phenomenal. Thewheat harvest is progressing northward, andis now centered in northern Kansas. Thresh-ing is going on throughout the southern portionof the district, and the yield reported is a fairaverage of quality and quantity.

Corn is doing well; there is a good stand andevery indication points to a bumper crop. Theproduction of sugar beets in this district isslightly above normal. The yield in varioussections will range from 12£ to 20 tons per acre,possibly averaging 15 tons. The milling indus-try has experienced great activity, and thefinancial statements of milling concerns now inthe hands of bankers show large profits. Thelive-stock market is active, and excessive rainshave provided splendid pasturage. Grass cat-tle are already commencing to move, and pricesare firm. During the present month the recordprice for 1915 and the highest price ever paidin the month of July, §10 JO, was quoted on theKansas City market. Receipts of hogs atmarket centers have been rather light, with re-sult that prices have ranged from strong tohigher. The horse and mule market is veryactive, top prices ruling on all marketablestock.



The lead and zinc industry is still active,with prices far above normal, although not ashigh as 15 days ago. Coal mining is showingincreased activity by reason of the demandfor thrashing and storage purposes. The oilindustry is quiet by reason of low prices ofraw material and the limited supply acceptedby the pipe lines.

Wholesale and retail trade is normal, withfair collections. Much building and improve-ment work is noticeaWe, with many large civicprojects under way.

Banking business is quiet and will probablycontinue so until the marketing of the wheatcrop actually commences. Undoubtedly, ifreasonable prices are received for this year'scrops, there will he heavy liquidation duringAugust and September. In some sections ofthe district there is an excess of loanablefunds, bank deposits are increasing, and thedemand for money is negligible. In other por-tions the demand for money is quite active,although local bankers are amply able to meetall requirements. Generally speaking, how-ever, the financial situation prevailing through-out District No. 10 reflects a degree of prosper-ity heretofore unequaled.

DISTRICT NO. 11—DALLAS.

This district is preeminently engaged inagriculture. The progress of crops, therefore,is of primary importance.

Dry weather, combined with hot winds, hastended to cut short the corn over considerableareas, but spite of this, the earlier forecast ofthe bumper corn crop of the State remains true.The oat crop has been harvested, and barringconsiderable deterioration through North Texasand Oklahoma counties, on account of heavyrains, the crop is excellent. Wheat has beenalmost entirely harvested under favorable con-ditions. Both oats and wheat are now beingoffered freely on the market.

The cotton plant has made satisfactoryprogress in most sections, particularly in thesoutheast and central sections. Already inSouth Texas the picking of cotton has begun in

force, and within 10 days a very considerablevolume will be coming into the market. Firstbales are now everyday occurrences. Greatactivity has been displayed during the pastmonth by various committees laboring forthe establishment of warehouses to take careof the oncoming cotton crop. A considerablenumber of houses are being constructed,and others are promised by the time cotton isactually ready for storage. It is anticipatedthat very large totals of bales will be held underwarehouse receipt in an effort to save the mar-ket from glut and disorganization. The cottongrowers of the district have not heretoforefaced their real problem with so determinedand serious a front. Present advices are to theeffect that the crop in this State will be verymaterially reduced.

The live stock interests of the State continuein most prosperous condition. Relatively highprices prevail, and throughout the districtpasturage conditions are far above normal.

The lumber industry shows slight improve-ment; demand has increased somewhat andprices are a shade better. The oil productionof this district has grown to such a point thatthe price for high-grade oil has been cut to35 cents per barrel, and even a further reduc-tion is anticipated. It is believed, however,that this may only be temporary, since theoutput from the Gushing field in Oklahoma isnow rapidly decreasing.

Member banks report that demand withthem is slightly on the increase, although farfrom normal; also deposits are tending toslump. Many of our reserve city members atthis season last year were heavy borrowers.This year they report few or no bills payable.This condition is reflected more or less by thethinness of demand with us.

General business conditions are improving;merchants report better sales with more satis-factory liquidations.

DISTRICT NO. 12—SAN FRANCISCO.

In this district there is general abundance ofcrops in great variety. There has already been


232 FEDEKAL EESEEVE BULLETIN. AUGUST 1,

much harvesting and other crops have beensatisfactorily progressing to maturity. It isreported that the greatest cereal crop in thehistory of Oregon, Washington, and Idaho isnow being gathered. In citrus fruits Valenciaoranges are moving at highly satisfactoryprices. Fresh fruits, melons, and vegetablesare in large supply.

Ordinarily such conditions would ensureprosperity; war conditions, however, introduceelements of surprising uncertainty. The lackof bottoms for exports hampers the marketingof the cereal crops; warehouses are filling, andit is probable that grain will move slowly fromgrowers' hands. It seems reasonable to expectthat delayed marketing may have a tendencyto correspondingly delay trade activity.

The prune crop is reported as abundant andgood, with contract prices about 33$ per centless than last year. Canners buying of suchfruits as peaches and apricots are naturally pro-portioned to orders in hand, which are reportedto be approximately 33$ per cent less than atthis time last year. It is said that prices aslow as S6 per ton are being paid for peaches, asagainst SIS per ton last year. It is assertedthat more than the usual proportion of fruitwill be dried, and some may even be thrownaway. It is clear that large crops will notmean uniformly profitable results. A fairaverage, however, is had by high prices forsome products offsetting low prices for others

As a whole it is undeniable that this district isadding steadily and largely to its wealth.

More hopeful expressions are received as tolumber, although there seems little tangiblereason. One confident expression was basedupon the larger activity in steel which, it wassaid, is always a precursor of increased activityin lumber.

Chinese capitalists are said to be layingplans for a trans-Pacific line of steamers, andit has been suggested that they may buy thePacific Mail steamers. More ships would be agreat advantage to the Pacific coast. Never-theless, during the first six months of 1915exports from San Francisco totaled $39,000,000as against $24,000,000 for the same period in1914, imports increasing from §5,400,000 to$7,800,000.

Bank clearings give a rough measure of tradeactivity. Total clearings for the four leadingPacific coast cities during the first six monthsof this year have been approximately 7 percent less than for the first six months of 1914.This moderate curtailment of business is fur-ther evidenced by the considerable increase ofidle funds in both national and State banksthroughout the district. During this fall, asis usual each fall, there will, of course, be aconsiderable increase in the aggregate of loans,but there seems reason to believe that theavailable means of the banks of this districtare such as to readily meet the requirements.



Movement of Principal Assets and Liabilities ofthe Federal Reserve Banks.

The following diagrams illustrate the move-ment of the principal assets and liabilities ofthe reserve banks during the present calendaryear. The uppermost curve in the first groupof diagrams indicates the growth since January8 of net deposits, and shows an increase fromabout 267.4 millions to 297.6 millions duringthe period to July 16* Notable gains of depositsare indicated for the second and third weeksin January, also for the second and fourthweeks in June. The latter increases were, how-ever, offset in part by a considerable decreaseshown for the first week in July.

The lowest curve, indicating the movementof the total gold reserve, is shown to rise duringthe first week in February,. when the secondinstallment of member banks7 payments onaccount of capital was due, also during theentire month of June and the first week in July.The latter rise is due in part to the gain indeposits, noted for the same period, and inaddition to the liquidation of investments inmunicipal warrants which fell due about thattime. Between January 8 and July 16 thegold reserve of the system shows a gain of 28.7millions from 232.5 to 261.2 million dollars.

The cash reserve curve runs practicallyparallel to the gold reserve curve and shows again during the same period of 37.2 millionsfrom 250.5 to 287.7 million dollars.

The second group of curves presents themovement of funds invested by the banks incommercial paper, bankers' acceptances, mu-nicipal warrants, and United States bonds.These curves, except the lowest, indicate thecumulative totals of the several classes ofinvestments. The lowest curve shows theweekly movement of the item "Commercialpaper on hand," while the uppermost curveshows the movement of all four classes ofinvestments taken together.

The amount of commercial paper held by thebanks (exclusive of acceptances) increasedfrom 9.9 millions on January 8 to 28.7 onJuly 16. The amounts held show a practicallycontinuous increase. The amount of accept-ances held has increased rapidly since February19, when for the first time this type of paper isshown among the assets of the banks in theweekly statement. The largest holdings arereported for April 16. The subsequent weekmarks the beginning of a decline which, whilenot continuous, resulted in a reduction of theseholdings to less than 9 millions, shown in theJuly 16 statement.

The sharp break in the two upper curves ofthe second group after May 21 is due chiefly tothe liquidation of funds invested in warrants,a large portion of which fell due during the lastweek of May. The weekly statement for May21 shows a maximum total of 28.5 million of thisclass of paper. Four weeks later the total haddeclined to almost one-third (9.7 million) andon July 16 stood at 14.4 millions.

The investments in United States bonds,mainly of the 3 per cent type, show a slowthough steady growth, the largest purchasesdating back to the early part of the year.- The movement of all funds invested incommercial paper, acceptances, and publicsecurities shows a practically unbroken upwardtrend up to May 28 when a total of $64,000,000is shown which constituted about 142 per centof the paid-in capital of the banks. On July 16the total of the earning funds had decreased toabout $60,000,000, which is only about 110 percent of the total paid-in capital reported onthat date.

The third diagram illustrates the comparativegrowth of individual deposits in the severalclasses of banks during the period 1900 to 1914.The figures on which this diagram is based arethose shown in the annual reports of theComptroller of the Currency.


COMMERCIAL PAPER, BANK ACCEPTANCES AND INVESTMENTS SINCE BEGINNING OF CALENDAR YEAR

APR. MAY11 (8 25, J. 9 jo 23 3QJUNE JULY



/ / /Z /3


236 FEDERAL BESEEVE BULLETIN. ADGUST 1,1915.

GOLD IMPORTS AND EXPORTS.

The Bureau of Foreign and Domestic Commerce in the Department of Commerce has fur-nished the following advance tables showing the imports and exports of gold, classified underthe head of ore, bullion, and coin, also the total gold imports by countries for the fiscal yearsending June 30, 1913 to 1915.

Imports and exports of gold in ore, bullion, and coin, fiscal year ending June SO,1915.

Ore and basebullion- Bullion, refined.

Coin,

UnitedStates* Foreign.

Total gold.

Maine and New Hampshire.MarylandNew YorkPhiladelphiaPorto RicoVirginiaFloridaMobileNew OrleansArizonaEagle PassEl PasoLaredoAlaskaSan FranciscoSouthern CaliforniaWashingtonBuffaloDakotaMichiganSt. LawrenceVermont

Total.,

EXPORTS—DOMESTIC,

Maine and New Hampshire.Massachusetts ,New YorkNew OrleansEl PasoAlaskaHawaiiSan FranciscoWashingtonBuffaloDuluth and Superior.MichiganSt. Lawrence

Vermont.

Total.,

EXPOETS—FOREIGN.

Maine and New Hampshire.MassachusettsNow YorkHawaiiBuffaloDuluth and Superior.St. LawrenceVermont

Total.,

$7504,254

116,392

Ounces (troy).

468,1412

504

399,836412,42136,795

145,35934,631

148168,756

6,3343,676,7594,421,526

141,6761,487,915

300

51,452

68,634

248,920401,493

26100,438

7901374,830

97,242

11,054,434 1,812,522

287

490 1327,616

1,558 2,346

277,276

11,979

1,73913,93779,461

10825

i 471,3996,085

151,051

291,303 894,059

$874 $55

9,417,136* 36

16,278,052250

1,351

$50,000•4,859,498

10,000

1,028,691

"i," 372* 750'

80,07720,01050,512

24,000

4,111,2078,166,562

4471,987,090

•'89*936'25,342 I 17,520,570

481,060 f80,909 I

498,000

12,2007,697,2082,008,500

34583,980,927

3,053641,585

35,812,701 101,091,873 23,609,747,

5,798

6,774,876

38,354

35,12981,111

1,639,4262,091

5179,700,117

103,769103

20,417

151,505400,000

32,367,302131,20030,0003,000

40,75068,855

180,987816,478

3,000

81,913,617

I 7,803,207

18,401,708 124,536,901

5010,606

2,933,18610

20,660' 20

18,550154

2,994,236

$1,67954,254

30,671,078286

1,35132

114,07720,010

466,4421,441,112

36 7951,518,109

34 6314,201,285

25,881,2307,331

6,642,9094,502 435

141 6761,500,460

74,328,5203,053

171,568,755

157,303400,000

39,142 668131 20030,00042,91240,75068,855

493,*3922,537,015

5,091627,517

91,729,482

7,823,727

143,229,912

5010,606

2,944,186

20,660

18,550154

2,994,236

i United States mint or assay office bars.


AUGUST 1,1915. FEDERAL EESEBVE BULLETIN. 237

Imports and exports of gold by countries during the 12 months mding June 30,1913,1914, and 1915.

1913 1914 1915

France

United Kingdom—Bngland..Canada I,Gentral American StatesMexicoWest IndiesSouth AmericaChinaJapanAustralia and Tasmania..,All other countries

Total..

EXPORTS—FOREIGN AKD DOMESTIC.

Belgium.France.,GermanyUnited Kingdom—England..CanadaWest Indies:

CubaOther West Indies

All other North AmericaSouth AmericaChina ,HongkongAll other countries

Total..

51,423,251495,234

10,020,73125,261,1533,100,604

20,517,2031,203,8604,266,401

14,8451,817,444

813,578254,721

69,194,025

661,04439,553,486

1,464,000

11,165,958

591,656288,445604,329

23,316,721103,35011,0902 543

$1,195,28414,176

2,565,42338,319,111

2,490,45011,116,9423,044,0056,342,955

480,040559,554410,719

66,538,659

221,31086,021,273

1,018,9131,296,771

19,388,441

1,186,278175,676

2,220,090494,012

5,8909,875

77,762,622 112,038,529

311,552,926

1,965,270110,761,093

2,751,5726,324,1633,393,9446,301,3216,268,263

17,745,162706,241

3,798,800

171,568,755

6,761,361

27,226,603103,455,383

6,325,086243,220352,132

1,515,658

46,905297,800

146,224,148


238 FEDERAL BESERVE BULLETIN. AUGUST 1,1915.

Below follows statement of classified imports and exports of gold for the weeks endingJune 25, July 2, 9, 16, and 23, and the cumulative period January 1 to July 23, 1915. Thesedata were furnished the Board by collectors of customs.

Imports of gold, by customs districts, Jan. 1 to July 23, 1915.


For week ending June 25.

Bullion, refinedUnited States coinForeign coin

Total^ For week ending July 2.

Orft and base bullionTltillinn rpfinedUnited statesonin

Total i

For week ending July 9.

Ore and base bullionBullion, refinedTTnitPfl states oniriForGiim coin

Total


Ore and base bullionBullion refinedUnited States coinForeitm coin... . . . .

Total

For iceeb ending July S3.

Ore and base bullionUnited States mint or

assay office barsBullion, refinedUnitod States coinForeign coin

Total

Jan. 1 to July 2S.

Ore and base bullionUnitod States mint or

assay office barsBullion, refinedUnitod States coinForeign coin

Total

hr!o B

1

1

Mar

ylan

d.

50

50

Now

Yor

k.

25414

3

462

4652

12

83

3225S

22S

320

2411

2 307

Por

to R

ico.

—

30 -

2 750

22

—

175 -

193

396

•

269

=

6,391 . . . .17 615 14,003 j . . . .

28,278 1

j Flo

rida.

j

c

6

—

10

A43

o I

New

Orl

eans

.

22

5

5

1

31

31

3

3

252

. . . . .

253

Ari

zona

.

26

26

IS5

23

27

27

31

4

,58

20

78

22S

396

3

415

19

19

10

41

5

5113

126

1

2

3

75

1,276

8

624 |l,359

Ala

ska.

240

240

20

18S

19243

262

98

San

Fra

ncis

co.

262

500

762—. ,_ -

9

9

113

750

863

o8

535

545

39

!

98

198

1,605

1,803

39

215

7,18321

11,760

19,179

Sou

ther

n C

ali-

forn

ia.

•

= = = = =

7

7

Was

hing

ton.

102

158

200

498

69S

40130

170

94

94

132

19S

330

2,282

9466

498

3,732

Buf

falo

.

149

149

105.

105

134

134

78

78

227

227

2,956

2

49"

3,007

| D

akot

a.

1

—

67

IT

Mic

higa

n.

23

. 23

12

12

70

70

18

18

32

32

932

932

St.

Law

renc

e.

5,0002,834

• 7,834

2,500

2,500

6311,960

137

2,728

1,154

20

1,174

3,1068,131

86,556622

98,415

Ver

mon

t.

. . . .

" " " 3 "

3

Tota

l.

2796,0592,837

526

9,701

3452,588

2510

3,445

4131,2151,963

915

4,506

252776

2,307573

3,908

J518

1,15449321

1981 2,384

J 7,486

3,10825,938

104,25716,969

157,758

1Includes $4,000 for Laredo, Tex,



Exports of gold, by customs districts, Jan. 1 to July 28, 1915.


For week ending June 25.

B ullion, refined, domesticUnited States coinForeign coin

Total


Ore find ba^e'bullionBullion refined domestic!United States coin

Total


United States mint or assay officebars

Bullion refinpd domfisticUnited States coin

Total


United States coin

For week ending July SS.

Ore and base'bullionUnited States mint or assay office

Bullion, refined:DomesticForeign

Foreign coin .1

Total

Jan. 1 to July SS.

United States mint or assay office

Bullion, refined;Domestic

United States coinForeign coin

Total

MaineandNew

Hamp-shire.

1

2

2

NewYork.

31,125

1,128

17

17

15

15

r>

io

10

3,3772,574

5,951

Hawaii.

3

3

2

2

1

I

1

* 23

23

Alaska.

2

• 2

SanFran-cisco.

3

3

5

10

10

54

54

Wash-ington.

61

7

27

27

1

1

166

8

44

21S

Buffalo.

1

' 1

10

2

12

13

22079

51

Dakota.

4

4

Mich-igan.

1

1

iI

3

3

4

. 1

5

Du-luthandSu-

perior*

1

1

St.Law-rence.

1

1

1

1

1

5

4

23

15

Ver-mont.

1

1

1

1

10

10

Total.

74

1,126

1,137

272

23

52

11

17

19

12

11

6

22

39

167

IS

3720

3,5032,586

6,336


240 FEDERAL EESEBVE BULLETIN. AUGUST 1,1915.

ACCEPTANCES.Acceptances, by classes, held by the Federal reserve banks each week.

Bate,

1915.June 28 -

July 12July 19. . . . ,July 26 „ ,

Memberbanks'accept-ances.

$4,211,0004,342,0004,231,0004,356,0005,165,000

Nonmember hanks'acceptances.

Trustcompanies.

$4,801,0005,267,0004,618,0004,367,0004,832,000

Statebanks.

$20,00020,000

Privatebanks.

$161,000161,000161,000323,000367,000

Total.

$9,173,0009,770,0009,010,0009,066,000

10,384,000

Acceptances indorsed by member banks: Trust companies' acceptances, $176,000; private banks'acceptances, $20,000; total, $196,000.

Distribution of acceptances held by Federal reserve banks according to schedules on hand July 20,1915, by classes ofacceptors and sizes.

Class of acceptors.

Member banks...Trust companies.State banksPrivate banks—

Total.

Percent

To $5,000. Over 55,000to $10,000.

$134,690 58114,859 32

249,549 92

F

$467,412223,975

19,890

Over $10,000to $25,000.

136

I!

$921,8451,351,619

20,000201,845

2,495,309

27.5

Over $25,000to $50,000.

32 $1,288,06127 829,453

101,065

2,218,579

24.5

Over $50,000to $100,000.

$956,285787,081

1,743,366

Over $100,000.

$588,0001,060,246

1,648,246= = =

18.2

Total.

421

204 $4,356,293" " 4,367,233

20,000322,800

9,066,326

Percent.

48.048.2

,23.6

100.0

Amounts of acceptances held by the several Federal reserve banks at close of business on Fridays from June %5 to July 28,1915.

Jin thousands of dollars.]

Bos-ton.

NewYork.

Phila-delphia.

Cleve-land.

Kich-mond.

At-lanta.

Chi-cago.

St.Louis.

Minne.apolis.

Kan-sas

City.Dallas.

SanFran-cisco.

Total.

Acceptances maturing within 30days:

June 25 ,July 2July 9July 1GJuly 23. . .

Acceptances maturing after 30 daysbut within 60 days:

June 25July 2July 9 . . . . ,July 16 ,July 23

Acceptances maturing alter 60 daysbut within 90 days:

June 25July 2July9July 16July 23

Total:June 25July 2

. July9July 16 ""July 23 " "

$959739603602588

582470445402399

500474472605

»1,110

2,0411,6831,5201,6092,097

$1,0841,7141,249979740

928955

2,2152,2192,349

2,0192,1591,3711,4152,014

4,6314,8284,8354,G135,103

$213452466308371

403173132442574

359449707445522

9751,0741,3051,2551,467

$1481551014948

1616259095

213187142155201

S3642372367474

371225165205

475347297275343

$2S02612181718

44152583124

342322287144189

$126120492534

17102590115

16814891132166

$398411331307208

1911912727

10113671118

632613558405353

$574260224124124

124160234134234

20419810012556

902618558383414

54,7464,3493,4772,5452,205

2,4272,1273,3303,3373,774

3,2063,3442 7S63,6894,359

10,3799,8209,5938,971

10,338

* Includes $90,500 of acceptances maturing after 90 days but within 3 months.


AUGUST 1,1915. FEDEEAL KESEBVE BULLETIN. 241

Amounts of acceptances purchased by each of the Federal reserve banks from February 19 (date of first purchase) to June30,1915, distributed by maturities.

[La thousands of dollars.]

Acceptances maturing within 30

February and March.April . . . .

June

Total

Acceptances maturing after 30 daysbut within 60 davs:

April " . . . .May

Total . . . .

Acceptances maturing after 60 daysbut within 3 months:

AprilMay.June

Total

Grand total

Boston.

135295615

235

1,235520587557

2,899

3,134

NewYork.

371252

141

539

197456454436

1,543

4,435792411

2,507

8,145

10,227

Phila-delphia.

8425

109

249

6257

368

862412109493

1,876

2,353

Cleve-land.

3925

64

508

5733

598

584116

1616

732

1,394

Rich-mond.

At-lanta.

Chi-cago.

141

141

2750

15974

310

1 245243

. 36

1,524

1,975

St.Louis.

67

67

25201

226

1001844

162

455

Minne-apolis.

10

10

47144612

119

280871317

397

526

KansasCity.

41

41

1645

61

41259307

27

634

736

Dallas.San

Fran-cisco.

61

61

152281200

633

211543124234

1,112

1,806

Total.

814752

141

1,032

1 315871

1 280627

4,093

8 8933 0721 5S53,931

17,481

22,60&

PAPER CURRENCY OUTSTANDING,

United States Treasurer's monthly statement of paper currency of each denomination outstanding June 30,1915.

Denomination. United Statesnotes.

Treasurynotes of 1890.

Federalreserve notes.

Nationalbank notes.

Goldcertificates.

Silvercertificates. Total.

One dollarTwo dollarsFive dollarsTen dollarsTwenty dollars....Fifty dollarsOnehundred dollars—Five hundred dollars...One thousand dollars..Five thousand dollars..Ten thousand dollars-Fractional parts

TotalUnknown, destroyed..

Net.,

$1,819,5401,363,613

202,123,160107,957,9968,092,6322,030,3752,983,7002,749,00018,551,000

$354,076225,319543,885

f 633,490291,33011,900116,000

$31,379,00028,054,06014,837,4404,990,0005,000,000

78,000

5342,317163,568

137,881,535354,680,300249,959,86032,964,60045,305,700

88,50022,000

10,00054,143

$214,940,420214,285,89446,567,35579,354,10019,801,50085,348,50095,885,000462,000,000

$174,838,42159,748,881182,868,96724 707,75119,159,40031,755,660

343,42018,50018,000

$177,354,35461,501,381554,796,547730,974,017506,626,556118,319,890133,102,92022,657,500104,017,50095,885,000462,010,000

54 143

347,681,016 I1,000,000

2,254,000 84,260,500 821,462,52312,188,930

1,218,182,769 493,459,000 2,967,299,8083,188,930

346,681,016 2,254,000 84,260,500 819,273,593 1,218,182,769 493,459,000 2,964,110,878

i Redeemed but not assorted by denominations.


242 FEDERAL KESERVE BULLETIK, AUGUST 1,1915.

DISTRIBUTION OF REDISCOUNTS.

The total amount of commercial paper re-discounted during the month of June was313,404,000, or SI,258,300 in excess of theamount rediscounted during May, all of thebanks, except Dallas and San Francisco, re-porting increased operations.

Over 76 per cent of the paper rediscountedby the four eastern banks was 60-day paperas against 32.5 per cent for the four westernbanks and 40 per cent for the three southernbanks. The San Francisco bank reports about33 per cent of this class of paper.

Relatively large purchases by the Minneap-olis bank of agricultural and live-stock papermaturing after 90 days raise the proportionof this class of paper to 3S.S per cent ofthe total amount of rediscounts of the fourwestern banks and decrease the proportionof this class of paper reported by the threesouthern banks from about 75 per cent forthe month of May to 62.4 per cent for June.While the percentages of the several classesof paper handled by all the banks during Junevary but slightly from the percentages for themonth of May, there are some quite materialchanges in the liquidity of the paper pur-chased by some of the banks. Thus, for exam-ple, the percentage of 30-day paper discountedby the Boston bank during the month of Juneincreased to 47 per cent of the total from only

27 per cent of the total rediscounts handled inMay.

The number of banks accommodated in-creased from 716 in May to 785 in June and nowstands at 10.3 per cent of the total number ofmember banks.

The relative work of the discount depart-ments is shown to some extent by the numberof notes handled during each month, which is9.55S for May and 10,734 for June. Of the totalnumber of notes handled the share of the threesouthern banks was about 73 per cent in Juneas against 78 per cent in May, while of the totalamounts handled the share of the three south-ern banks was about 66 per cent in June andover 68 per cent in May.

The average size of the notes discounted inJune by all the banks was Si,249, comparedwith $1,271 in the preceding month. The aver-ages vary between $681 for the New York bankand S3,043 for the San Francisco bank. Of thetotal number of notes rediscounted during Juneabout 27 per cent, and of the total amountabout 53 per cent, were notes in amounts of$1,000 to S5,000. Small notes (in amounts upto §250) constituted almost 32 per cent of thetotal number, though only 3.6 per cent of thetotal amount of notes rediscounted during themonth. Over 84 per cent of the entire numberof notes up to $250 was discounted by the threesouthern banks.


.AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 243

Commercial paper, exclusive of acceptances, rediscounted by each of the Federal reserve banks during the month of June, 1915,distributed by sizes.

NUMBER OF PIECES AND AMOUNTS.


Bank.

BostonNew YorkPhiladelphia. .ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis. . .Kansas Ci ty . . .DallasSan Francisco.

To ta l . . . .

To $100.

1,069

4.0.4.7

32.218.2

.81.11.0.2

18.8

77.4

Over S100 to3250.

1473513

55957232639314

81421

2,363

Over S250 toS500.

23.26.2:2.3!

97.4!99.0:7.6

11.416.12.6!

135.33.4

25104]

67j201

6224758969

131127

53131

11.337.325.4

7.5246.3177.835.626.148.110.3

190.311.3

404.5; 2,191 j 827.3

Over $500 to51,000.

If

29575829

59031910756

18240

342

1,861

20.139.745.323.6

484.7249.686.045.5

129.829.3

253.436.5

1,443.5

Over $1,000to 32,500.

21415140

51329113875

166139|

34969

34.658.192.869.1

909.4511.0225.9135.6243.460.5

571.4110.7

1,793 3,028.51,049

Over $2,500to $5,000.

147.394.7

192.7162.8

1,283.7719.4198.8103.8166.4118.1706.6180.4

4,074.7

Over $5,000to 510,000.

325

OS. 532.577.08S.6

677.2328.068.667.2

137.682.1

428.6217.

2,273.1

Over310,000.

65.6

15.080.6

273.4

Total.

120425273108

3,147255.0! 2,13524.8 440

311687170

10.252.630.4

172.7294.7

2,577281

83 1,275.0 10,734 13,404.0| 100.0

|

347.4289.5454.8435.21

4,004.32,358.0

648.lt400.91795.0333.5J

2,477.1!SG0.2J

2.02.13.33.2

30.117.64.83.05.92.5

18.56.4

PERCENTAGES OF AMOUNTS

BostonNew York .PhiladelphiaCleveland. ...RichmondAtlantaChicago.. . . . . . . ;St. LouisMinneapolisKansasCityDallas

Total. ., .*.

To $100.

Per cent.

1.4

.2

.8

.8

.1

.3

. 1

.1

.8

.6

Over$100 to

$250.

Per cent.

8 01.4

.52.44.21.22.92,0

.85.5

.4

3.0

OF EACH CLASS TO TOTAL.

Over$250 to$500.

Per cent.3 3

12 95.61.76.27.55.56.56.1

. 3.17.61.3

6.2

Over$500 to$1,000.

Per cent.5.8

13.79.95.4

12.110.613.311.316.38.8

10.24.2

10.7

Over$1,000 to$2,500.

Per cent.9.9

20.120.415.922.721.734.833.730.718.123.113.6

22.6

Over$2,500 to$5,000.

Per cent.42.432.742.437.432.130.530.725.920.935.428.521.0

30.4

Over$5,000 to$10,000.

Per cent.19.711 217.020.416.913.910.616.817.324.617.325.2

17.0

Over$10,000.

Per cent.18.9

3.318.56.8

10.83.82.66.69.17.0

34.3

9.5

Total.

Per cent.100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0

100.0

Commercial paper rediscounted during June by each of the Federal reserve banks, distributed by States and maturities as of

date of rediscount.


Districts and States.

District No. 1—Boston:

New Hampshire

Vermont

Total.. . . .

District No. 2—New York

District No. 3—Philadelphia:

Pennsylvania

Total

Numberof member

banks.

7470

170561848

436

479

24201533

758-

Numberof banks

accommo-dated.

215104

13

20

11213

26-

Papermaturingwithin 30

days.

10.7

141.63.0

7.3

162.6

136.8

71.8138.5

210.3

Papermaturingafter 30

days butwithin 60

days.

18.38.9

70.54.6

40.9

143.2

82.0

86.762.3

149.0


days butwithin 90

days.

13.44.8

10.03.4

6.7

38.3

169.3

3.067.425.1

95.5

Papermaturingafter 90days.

2.9

.4

3.3

1.4

Totalcommercialpaper re-

discounted.

42.416.6

222.111.4

54.9

347.4

289.5

3.0225.9225.9

454.8

i Including 4.5 of paper, maturing within 10 days.


244 FEDERAL BESEEVE BULLETIN. AUGUST 1,1915.

Corrwiercial paper rediscount^ during June by each of the Federal reserve banks, distributed by States and maturities as ofdate of rediscount—Continued.

[In thousands of dollars,]

Districts and States.Number

of memberbanks.

Numberof banks

accommo-dated.


days.


days butwithin 60

days.


days butwithin 90

days.


Totalcommercial

re-ited.

District No. 4-Cleveland:KentuckyOhioPennsylvaniaWest Virginia

Total

District No, 5—Richmond:District of ColumbiaMarylandNorth CarolinaSouth CarolinaVirginia • ,West Virginia ,

Total

District No. 6—Atlanta:AlabamaFloridaGeorgia . . . . .LouisianaMississippiTennessee ,

Total

District No, 7—Chicago:IllinoisIndianaIowa ,MichiganWisconsin ,

Total

District No. S-St. Louis:ArkansasIllinoisIndianaKentuckyMississippiMissouri..Tennessee

Total '..

District No. 9—Minneapolis:MichiganMinnesotaMontanaNorth DakotaSouth DakotaWisconsin

Total ,

District No. 10—Kansas City:Colorado ,Kansas ,MissouriNebraskaNew Mexico ,OklahomaWyoming ,

Total

District No. 11—Dallas:ArizonaLouisianaNew MexicoOklahomaTexas

Total

72378301

9

760

131008071

136108

508

9256

1135

1897

381

3131973487349

1566169177920

462

3127765

15311187

724

12221652

21210

18833

62528

163537

58.772.352.0

87.951.756.7

.4

16.720.612.2

.7

37 183.0 196.7 50.2

35,237,088.9

302.8138,535.5

123.28.0

357.1463.5280.562.2

50.412.6

661.1526.1377.939.2

102 637.9 1,294.5 1,667.3

16.740.577.720.5

1.342.8

75.986.2

226.3

11.7325.3

100.4349.5402.9

4.139.0

196.8

128 199.5 725.4

3.79.1

26.416.5

47.134.168,52.0

1,092,7

53.552.6

100,16.6

57 55.7 151.7 212.8

1.314.15.08.1

3.427.813.012.7

4.0U9.8

15.341.1

14,750.5. 8 . 3

6.33.0

20.855.7

41 52.3 113.3 159.3

12.5

. 5

23.22.54.92.9

32.1 70.3

3.013.447,119.21.5

103.1

46.0 103,8 187.3

5.12.56.2

2.130.5

16,3

4,525.5

7.8 30.7

24.1

*ii.*4'

38 21.6 162.9 Q5.5

18134

166

37,8

2.363.4

58.812.347.2

479.2

149.123.531.5

755.2

103,5 597.5 959.3

1 Including 5.0 of paper, maturing within 10 days.

.35.0

5.3

.585,1

252.465.8

.8

404.6

101.816.3

208.4

13.9

340,4

42.417.5

167,0

1.0

227.9

27.730.2

11.66.5

76.0

149.972.6

166.651.617.2

457.9

2.128.31.8

23.73.2

24.4

83.5

76.133.863.2

643.7

814.8

163.3144.9125,9

1.1

435.2

208.858,1

1,192.21,544.8

862.7137.7

4,004,3

294.8492.5915.324,662.0

578.8

2,358.0

146.7113.3362.025.11.0

648.1

47,1122.626.327.114.646.6

116.6

400.9

38.7165.8125.5189.253.1

222.7

795.0

13.886.891.364.13.2

74.3

333.5

321.869.6

144.21,941.5

2,477.1


ADGDST 1, 1915. FEDERAL RESERVE BULLETIN. 245

Commercial paper rediscounted during June by each of the Federal reserve banks, distributed by States and maturities as odate of rediscount—Continued.


Districts and States.

District No. 12—San Francisco:Alaska '.

California a . _ . . _

Nevada ... . . . . . . . . . . . . . - .

UtahWashington

Total .

BECAFtTULATlON.Districts:

No. 1—BostonNo. 2—New YorkNo 3—Philadelphia . .No. 4—ClevelandNo. 5—RichmondNo. 6—Atlanta..No. 7—Chicago . . ; .No. 8—St. Louis . .No* 9—Minneapolis . . . . . . . . . . . . . . . .No 10—Kansas City . . . . . . . .No 11—Dallas . . . .

Total . . . . .

Numberof member

banks.

17

265571086237S

527

436479758760508381980462724833759527

7,607

Numberof banks

accommo-dated.

396

916

61

13202837

10212857419638

16661

78510.3


days.

65.4

5 76.0

£4.0

101.1

162.636.8

210 3183.0637.9199.555.752.346.021. &

103.5101.1

1.810.313.5


days butwithin 60

days.

124.59.3

22.025.5

2.0

183.3

143.282.0

149.0196.7

1,294.5725.4151.7113.3103.8162.9597.5183.3

3,903.329.1


days butwithin 90

days.

404.58.9

40 615.320.4

489.7

38.3169.395 550.2

1,667.31,092.7

212.8159.3187.365.5

959.3489.7

5,187.238.7


64.115.6

2.6

3.8

86.1

3.31.4

5.3404.6340.4227.976.0

457.983.5

816.886.1

2,503.2• ML 7

Totalcommercialpaper re-

discounted.

658.533.8

70 946.850.2

860.2

347.4289.5454 8435.2

4,004.32,358.0

64a 1400.9795.0333.5

2,477.1860.2

13,404.0100.0

Amounts of commercial paper held by each of the Federal reserve banks on the last Friday of the month of June, distributedby maturities.


Federal reserve bank.

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

Total . . .Percent

Papermaturing

within30 days.

196.7215.5332.5415.9

2,952.91,693.9

358.02S0.2193.4207.7

2,071.8670.6

9,589.136.9

Papermaturing

after30 days but

within60 days.

86.0212.9246.0278.3

2,417.51,249.7

319.0182.1187.2171.7

1,579.4712.5

7,642.329.4

Papermaturing

after60 days but

within90 days.

5.5109.474.654.3

1,300.1827.7257.6131.6153.995.5

831.8302.8

4,144.815.9

Papermaturing

after90 days.

7.12.6

35.5707.4628.5252.9149.6547.8135.8

1,971.3181.7

4,620.217.8

Total.

295.3540.4653.1784.0

7,377.94,399.81,187.5

743.51,OS2.3

610.76,454.31,867.6

25,996.4100.0


246 RESOUHCES AND LIABILITIES. AUGUST l, 1015,

Resources and liabilities of each of the Federal reserve banks and of the Federal reserve system at close of business on FridaysJuly 2 to July 23.


RESOURCES.

Gold coin and certificatesin vault:

July 2Julj-9July 10July 23

Gold settlement fund:July 2July9Julylf,July 23

Gold redemption fund:July 2July9July 16July23

Legal tender notes, silver,etc.:

July2JulyOJuly 10July 23

Total reserve:July 2JulyOJuly 16July 23

Commercial paper:July 2July9 : . ,Julylf*July 23

Bank acceptances:July2July9July 16July 23

United States bonds:July 2July 9July 16July 23

Municipal warrants:July2July9July 10July 23

Due from other Federalreserve banks, net:

J i 2Juiy2July 9July 16July 23

Federal reserve notes,net assets:

July2July9July 16July 23

All other resources:July2July9July 10July 23

Total resources:July2JulyOJuly 10July23

Boston.

$9,1799,1018,4278,644

3,8170,4747,0417,707

NewYork.

6

si194430171170

13,19616,01116,24516,527

430414403

1,6831,5201,6092,097

2,2342,2922,2972,404

2,5161,7361,779

56$443430453

103175108301

20,73022,59122,87122,150

$126,989117,093112,132113,001

2,3505,8467,12510,151

55555555

16,12312,71017,00116,301

145,523135,704136,913139,508

515629593585

4,8284,8354,0135,103

4,2694,6304,9365,160

2,9053,8075,4744,584

160157188161

153,260149,702152,717155,101

Phila-delphia.

$10,02114,77813,90913,241

1,8221,4591,3841,671

37373737

2,5812,4732,9533,027

20,461•18,74718,28317,976

577560775727

1,0741,3051,2551,467

194340340340

1,2561,4801,5711,631

773716748427

39715358

126349582696

24,50023,56823,60723,322

Cleve-land.

$13,36113,07613,01112,966

3.5203,6334,3514,256

17171717

848856974

1,024

17,74617,58218,35318,203

757703095

187142155201

535035GOO660

1,4951,5941,5561,539

1,4821,782737

1,166

249215288

194198295341

22,04522,85122.73923,177

Rich-mond.

At-lanta,

$4,7474,3024,3884,431

2,6953,2593,4343,212

200265275300

107100111130

7,8097,9328,2088,073

7,3117,5658,0508,313

1,1251,119310623

100141137158

16,34616,75716,70517,167

$3,7063,6973,5013,529

1,0401,4471,5111,304

225225225225

323190207340

5,8945,5595,4445,398

4,5404,5224,7574,745

204212120

24431528177

10,94210,60810,60210,523

Chicago.

S24.38623,99225,62225,974

5,83713,96810,2719,329

120120

2,4333,5602,4312,989

32,77641,64038,32438,292

1,2231,3401,4771,537

347297275348

3,7253,7253,7253,725

1,3831,6281,6901,770

11,9791,2222,9652,996

2,3202,3332,3512,353

201155176142

53,95452,34050,98351,163

St.Louis.

$8,0917,6007,6547,650

1,3841,3841,2561,657

35353535

1,050990974846

10,56010,0099,91910,188

804874

322287144

242242242242

408518568620

1,256240

1,224

8798107

1,8701,4821,8612,194

15,58513,79914.95414,476

Minne-apolis.

$7,0517,0016,8506,652

1,1071,3171,2351,187

30303030

4444

8,1928,3528,1197,873

1,1631,4231,4871,506

14891132166

1,0251,0251,0251,025

368445445496

2104311354

10079183

52

11,24711,52811,45611,360

KansasCity.

$6,6496,1996,2956,299

3,7023,5393,6973,611

37373737

471472490493

10,85910,24710,51910,440

021866985

1,104

613558405353

930930930930

214332342454

63171429371

520550616535

13,82613,05414,22014,187

Dallas.

$3,0373,0433,0512,763

2,9133,1623,7563,993

237268298313

565568

6,877•7,1657,6707,642

6,5216,2220,6246,629

373418345162

23386922

13,79413,84314,70814,445

SanFran-cisco.

$8,1518,0798,G328,897

1,0471,6181,019367

21212121

17111121

9,2369,7299,6839,306

1,8451,9661,9251,936

6185BS383414

1,0011,0011,0011,001

702976986

1,230599903

1,301

1,3081,3231,1801,181

• 61806781

16,06116,23716,12816,256

Totalfor

system.

$231,363218,021213,472214,047

31,84047,10640,68048,450

1,0801,116lT0361,076

24,84122,49420,49225,913

289,129288,737287,680289,486

20,36727,0S428,66929,085

9,8209,5938,97110,338

7,0527,8987,9237,923

12,39013,89514,39115,110

19,8621 6,10715,85515,229

7,6018,3799,9539,227

3,6003,0944,4304,765

300,481305,387367.878371,163

* Items in transit, i. e., total amounts due from minus total amounts due to other Federal reserve banks.


AUGUST 1,1915. EESOXIRCES AND LIABILITIES. 247

Resources and liabilities of each of the Federal reserve banks and of the Federal reserve system at close of business on Fridays,July 2 to July 28—Continued.


LIABILITIES.

Capital paid in:July2July 9July 16...July 23

Reserve deposits, net:July 2July 9July 16July 23

Federal reserve notes, netliability:

July 2July 9July 16July23

Due to other Federal re-serve banks, net:

July 2July 9July 16July 23

All other liabilities:July 2July 9 . . . . . . . . .July 16

Boston.

34,7784,7784,7784,802

15,91417,81318,09317,063

NewYork.

$9,96210,53610,55910,812

135,421'135,131136,630141,409

11,409

Phila-delphia.

$6,2255,6525,6295,376

18,27517,91617,97817,946

Cleve-land.

$5,9465,9515,9515,951

16,90016,78817,226

Rich-mond.

$3,3653,3603,3503,361

7,8858,1787,8967,950

5,0095,1375,3685,757

At-lanta.

$2,4142,4152,4152,414

5,5905,2255,2495,219

2,9202,8S82,837

Chicago.

56,6086,6086,6106,610

47,3-1645,73244,37344,553

St.Louis.

$2,7882,7882,7902,794

12,79711,01112,16411,463

Minne-apolis.

KansasCity.

$2,422 I $2,8172.422 I 2,8S52.423 2,9372,423 ! 2,946

S,S25 10,5929,100 i 10,5919,033 11,0038,937 10,901

417178

340

Dallas.

$2,8692,7SG2,7702,758

6,4125,8916,2040,003

4,4795,1405,7005,587

SanFran-cisco.

$3,9343,9233F9233,923

12,12712,31412,20512,333

Totalfor

system.

$54,12S54,10454,13554,170

297,883295iO297,010301,063

12,79713,37514,21214,521

2,151

285

38

July 23al liabilities:Total 1:July 2.,Julv 9-.July 16.July 23.

3,8181,660

1,4681,9441,7101,220

219

20,73022,59122,87122,150

158,260149,762152,717155,lni

24,50023,56S23,60723,322

22,64522,85122,73923,177

16,34616,75716,70517,167

46485053

10,94210,60S10,60210,523

53,95452,3-1050,9S351,163

15,58513,79914,95414,476

11,24711,52811,45611,360

13,82613,65414,22614,187

34263437

13,79413,84314,70314,445

16,06116,23716,12816,256

1,6732,1001,SS51,409

366,481365,387307,S7h371,163

CIRCULATION OF FEDERAL RESERVE NOTES.

Federal reserve notes is-sued to the banks:

July 2July 9July 16 *July 23

Federal reserve notes inthe hands of the banks:


Federal reserve notes incirculation:

July 2July 9..July 16July 23

Gold and lawful moneydeposited with F . R.agents:

July 2 . . . .J u l y 9 . . . . . . . . . . . . . . . .July 16 . ;July 23

Carried to net liabilities:July 2July 9July 16July 23

Carried to net assets:Julv 2Jllly9July 16July 23

S3,9203 9204 4204,420

568443430453

3 3523,4773 9903 967

3,9203,9204,4204,420

568443430453

$40,50042,90045,32045,320

3,1453,9875,6744,784

37,35538,91339,64640,536

40,32042,72045,12045,120

2,9653,8075,4744,584

S2,4202,5002,6602,730

39715358

2,3812,4292,6072,672

2,4202,5002,6602,730

3971535S

$4,2004,5004,6004,700

249215288308

3,9514,2854,3124,392

4,2004,5004,6004,700

2492152SS308

$.7,7508 0508,2008,300

191163132243

7,5597;8S78,06S8,057

2,5502,7502,7002,300

5,0095,1375,36S5,757

$5,1505,3005,5005,500

30S4304C2513

4,8424,8705,0384,987

1,9501 8502,1502,150

2,8922,9202,SS82,837

$4,3804,3804,3S04,380

2,3202,3332,3512,353

2,0602,0472,0292,027

4,3S04,3804,3S04,380

2,3202,3332,3512,353

$626626626626

63879S

107

563539528519

626026626C26

6387

. 9S107

$3,3003,5003,6003,800

SO100

79183

3,2113,4003,5213,617

3,3003,5003,6003,800

8910079

183

$3,6004,1004,1004,100

223512401350

3,3773,5S83,6963,750

2,9603,4103,4103,410

417178

340

$6,6957,3157,9158,215

266225265178

6,4297,0907,6508,037

1,9501,9501,0502,450

4,4795,140

5,587

$2,0402,0102,0402,040

l,30S1,3231,1801,181

732717SGO859

2,0402,0402,0402,040

1,3081,3231 1 Qn

1,181

SS4,5S189,13193,36194,131

8,7609,8*9

ll,41ti10,711

••

75,812

79,24281,94583,420

70,61674,24677,65078,120

12,79713,37514 9.1 •>14,521

7,6018,379Q Q^T

9,227


248 FEDERAL RESERVE AGENTS ACCOUNTS, AUGUST l t 1915.

Statement of Federal reserve agents1 accounts at close of business Fridays, July 2 to July 23,

(In thousands of dollars.)

Boston. NewYork.

Phila-delphia,

Cleve-land.

Rich-mond.

At-lanta. Chicago. St.

Louis,Minne-apolis.

KansasCity. Dallas.

SanFran-cisco.

Total.

Federal reserve notes re-ceived from the Comp-troller:

July 2July 9

SS&:::Federal reserve notes re-

turned to the Comp-troller:

July 2July 9 '•July 16July 23

Amount of Federal re-servo notes chargeableto Federal reserve agent:


Federal reserve notes inhands of agent at closeof business Fr iday-

July 2 . . . ,July 9July 16July 23 . . .

Federal reserve notes is-sued to Federal reservebant, less notes re-turned to agent for re-demption and cancella-tion:

July 2July 9JulyieJuly 23

Held by Federal reserveagent in reduction ofliability on outstand-ing notes:

Gold coin, and certifi-cates—


Lawful money-July 2July 9July 16July 23

As security for outstand-ing notes:

Commercial paper i—July 2July 9July 16July 23

$11,00011,80011,80011,800

$45,04047,81047, $4049,840

So,3605,3605,3405,340

$6,0006,0006,4006,400

$8,4209,1609,1609,160

$8,5008,500S,5008,500

$9,2609,2609,2609,260

§3,4003,4003,4003,400

$4,0004,0004,0005,000

$6,0006,0006,0006,000

$9,3009,2959,7759,775

$3,6003,6003,600

10,000

20

$H9,8S0124,215125,075134,475

520

Total—July 2.. .July 9...July 16..July 23..

i Amount of commercialpaper turned over tothe Federal reserveagent:

July 2July 9July 16July 23 •...,

11,000n,8oo11,80011,800

7,0807,8S07,3S07,380

3,9203,9204,4204,420

3,9203,9204,4204,420

45,04047,84047,S4049,840

4,5404 9402,5204,520

40,50042,90045,32045,320

40,32042,72045,12045,120

5,3605,3405,3405,310

2,9402,8402,6802,580

2,4202,5002,6602,730

• 2,4202,5002,6602,730

6,0006,0006,4006,400

1,8001,5001,8001,700

4,2004,5004,6004,700

4,2004,5004,6004,700

8,4209,1609,1609,160

6701.110

960

7,7508,0508,2008,300

2,5502,7502,7002,300

8,500S,5008,5008,500

5,1503,2003,0003,000

3,3505,3005,5005,500

1,9501 9502,1502,150

9,2609,2609,2609,260

4,8804,8804,8804,880

4,3S04,3804,3804,380

4,3804,380

54,26024,260

3,4003,4003,4003,400

2,7742,7742,7742,774

626626626

626626626626

4,0004,0004,0005,000

700500400

1,200

3,3003,5003,6003,800

3,3003,5003,6003,800

6,0006,0006,0006,000

2,4001,9001,9001,900

3,6004,1004,1004,100

2,9603,4103,4103,410

9,2959,2959,7759,775

2,6001,9801,8601,560

6,6957,3157,9158,215

1,9501,9501,9502,450

3,6003,6003,600

10,000

1,5601,5601,5607,960

2,0402,0402,0402,040

2,0402,0402,0402,040

180180200200

5,2005,3005,5006,000

1,4003,3503,3503,350

640690

4,7455,3655,9655,765

3,9203,9204,4204,420

40,50042,90045,32045,320

2,4202,5002,6002r730

4,2004,5004,6004,700

7,7508,0508,2008,300

3,3505,3005,5005,500

4,3804,380

*4,260M,260

626626626626

3,3003,5003,6003,800

3,6004,1004,1004,100

6,6957,3157,9158,215

2,0402,0402,0402,040

180ISO200200

5,2025,3025,5026,095

3,2033,3553,3513,350

640690690

5,8675,5986,1825,985

119,875124,195125,075134,445

37,09435,06431,71440,314

82,78189,13193,36194,131

70,61674,24677,53678,006

12,16514,88515,70516,005

82,78189,13193,24194,011

15,09215,12515,92516,321

2 Exclusive of $120,000 in the gold redemption fund with the Treasurer of the United States.


INDEX.

Page.Acceptances 240-241Address by Mr. John Perrin, of Federal Reserve

Bank of San Francisco 186-188Address by Mr. D. 0. Wills, of Federal Reserve

Bank of Cleveland 188-192Business conditions, general 228-235Circulars and regulations 215-217

Regulation O—Issuance and redemption ofFederal reserve notes 214-215

Circular 16—Trade acceptances 216Clayton Act, interpretation of 221Conference of bank examiners 217Cotton situation 180-182Discount rates in effect 214Earnings and expenditures of Federal reserve

banks 176-179Federal reserve agents* accounts, statement of 248Gold imports and exports 236-239Gold settlement fund 183-185Government bonds, purchase of 217Informal rulings of the Board 211-213

Page,Intradiatrict clearance system, establishment of. 192-210Law department 218-224

Right of State banks and trust companies tosubscribe for stock.., 218

Surrender of stock by a member bank reduc-ing its surplus 218

Rediscount of drafts payable on condition 219Payment of dividends by Federal reserve

banks 220Interpretation of Regulation F 221Interpretation of the Clayton Act 222

Movement of principal assets and liabilities ofFederal reserve banks 233-235

Paper currency outstanding 241Rediscounts, distribution of 242-245Resources. and liabilities of Federal reserve

banks 246-247State bank membership in Federal reserve system. 182Trustee powers, applications for, approved 214Work of the Federal Reserve Board 175

o


Federal Reserve Bulletin August 1915 - St. Louis Fed

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Transcript of Federal Reserve Bulletin August 1915 - St. Louis Fed