frb_071927

FEDERAL RESERVEBULLETIN

JULY, 1927

ISSUED BY THE

FEDERAL RESERVE BOARDAT WASHINGTON

Mid-Year Summary of Banking DevelopmentsEarnings and Expenses of Member BanksCondition of All Banks in the United States

UNITED STATESGOVERNMENT PRINTING OFFICE

WASHINGTON1927

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

FEDERAL RESERVE BOARD

Ex officio members:A. W. MELLON,

Secretary of the Treasury, Chairman,J. W. MCINTOSH,

Comptroller of the Currency.

D. R. CRISSINGER, Governor.EDMUND PLATT, Vice Governor.ADOLPH C. MILLER.CHARLES S. HAMLIN.GEORGE R. JAMES.EDWARD H. CUNNINGHAM.

WALTER L. EDDY, Secretary.J. C. NOELL, Assistant Secretary.E. M. MCCLELLAND, Assistant Secretary.W. M. IMLAY, Fiscal Agent.J. F. HERSON,

Chief} Division of Examination, and Chief FederalReserve Examiner.

WALTER WYATT, General Counsel.E. A. GOLDENWEISER, Director, Division of Research

and Statistics,CARL E. PARRY, Assistant Director, Division of Re-

search and Statistics^E. L. SMEAD, Chief, Division of Bank Operations.

FEDERAL ADVISORY COUNCIL

District No. 1 (BOSTON)..... ARTHUR M. HEARD.District No. 2 (NEW YORK) . -

: JAMES S. ALEXANDER.District No. 3 (PHILADELPHIA)., , . - .__ L. L. RUE.District No. 4 (CLEVELAND).. . . HARRIS CREECH.District No. 5 (RICHMOND).... _ . JOHN F. BRUTON, Vice PresidentDistrict No. 6 (ATLANTA) _ P. D. HOUSTON.District No. 7 (CHICAGO) . . . - _ . . . . FRANK O. WETMORE, President.District No. 8 (ST. L O U I S ) _ _ _ _ . . . . . . . BRECKINRIDGE JONES.District No. 9 (MINNEAPOLIS) . _ . THEODORE WOLD.District NO. 10 (KANSAS CITY) P. W. GOEBEL.District No. 11 ( D A L L A S ) . . . . . . , . _. . . . B. A. MCKINNEY.District No. 12 (SAN FRANCISCO)-- - - - . - . _ . _ HENRY S. MCKEE.

II


OFFICERS OF FEDERAL RESERVE BANKS

Federal Reserve Bank of Chairman Governor Deputy governor Cashier

BostonNew York

PhiladelphiaCleveland __.._.Richmond ..Atlanta _Chicago

St. LouisMinneapolis

Kansas City __Dallas. _San Francisco....

Frederic H. Curtiss.G. W. McGarrah...

R.L.AustinGeorge DeCampWm. W. Hoxton.Oscar Newton...Wm. A. Heath...

Wm McC. Martin.JohnR. Mitchell...

M. L. McClure..C. O.WalshIsaac B. Newton.

W. P. G. Harding..Benj. Strong ....

Geo. W. Norris...E. R. FancherGeorge J. SeayM. B. Wellborn...J. B. McDougal

W. W. PaddockJ. H. CaseL. F. SailerG. L. Harrison..E. R. Kenzeh ____.Wm. H. Hutt.. . . . . .M, J. FlemingFrank J. Zurlinden..C. A. PepleR. H. BroaddusHugh FosterCreed Taylorj C. R. McKayJohn H. Blair.

D. C. Biggs.....R. A. Young

W. J. Bailey ..._..__.Lynn P. TalleyJ. U. Calkins ....____

0. M. AtteberyW. B. GeeryB. V. Moore...Harry YaegerC. A. Worthington.,R. R. Gilbert.......R. B. ColemanWm. A. Day.Ira Clerk.L. C. Pontious..

W. Willett.A. W. Gilbart.iJ. W. Jones.iRay M. GidneyJL. R. Rounds.10. A. Mcllhenny,W. G. McCreedy.iH. F. Strater.Geo. H. Keesee.John S. Walden, jr.*M. W. Bell.W. C. Bachman.iK. C. Childs.iJ. H. Dillard.iD. A. Jones,*0. J. Netterstrom.iJ. W. White.Gray Warren.Frank C. Dunlop.1

J. W. Helm.Fred Harris.W. N. Ambrose.

1 Controller. Assistant deputy governor.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS

Federal Reserve Bank of

New York:Buffalo branch......

Cleveland:Cincinnati branch...Pittsburgh branch

Richmond:Baltimore branch

Atlanta:New Orleans branchJacksonville branch..Birmingham branchNashville branch -.. . ._

Chicago:Detroit branch

St. Louis:Louisville branchMemphis branch. _Little Rock branch

Managing director

W. W. Schneckenburger.C. F. McCombs.J.C. Nevin.A. H. Dudley.Marcus Walker.Geo. R. DeSaussure.A. E. Walker.J. B. Fort, Jr.W. R. Cation.W. P. Kincheloe.W. H. Glasgow.A. F. Bailey.

Federal Reserve Bank of

Minneapolis:Helena branch

Kansas City:Omaha branch...____Denver branch _Oklahoma City branch.......

Dallas:El Paso branchHouston branchSan Antonio branch . . .

San Francisco:Los Angeles branch...Portland branchSalt Lake City branchSeattle branch.._Sookane branch.. __ .

Managing director

R. E. Towle.L. H. Earhart.J. E. Olson.C. E. Daniel.W. 0. Ford.D P. ReordanM. Crump.R. B. Motherwell.R. B. West.W. L. Partner.C. R. Shaw.D. L. Davis.

SUBSCRIPTION PRICE OF BULLETIN

THE FEDERAL RESERVE BULLETIN is the board's medium of communicationwith member banks of the Federal reserve system and is the only official organor periodical publication of the board. The BULLETIN will be sent to all memberbanks without charge. To others the subscription price, which covers the cost ofpaper and printing, is $2. Single copies will be sold at 20 cents. Outside of theUnited States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents.

i n


TABLE OF CONTENTS

Review of the monthMid-year review of banking developments 455Treasury finance 458Earnings and expenses of member banks 460, 549-553Statistical work of the Federal Reserve Board and banks 464Foreign balances of member banks 465Condition of all banks in the United States 466, 543-548Changes in membership in the Federal reserve system 466Annual report of the Federal Reserve Board 467Mid-year summary of banking statistics 527-542National summary of business conditions 468Financial, industrial, and commercial statistics:

Reserve bank creditReserve bank credit in use 470Discounts and deposits of Federal reserve banks 470

Gold imports and exports and money in circulation . 471Money rates in New York City 472Federal reserve bank rates 472Open-market rates 472Rates charged customers by banks in principal cities 473Member bank credit

Member bank reserve balances and borrowings at Federal reserve banks 474Loans, investments, and deposits of reporting member banks 474Bankers' balances in Federal reserve bank and branch cities 475

Commodity prices, security prices, and security issues 476Industrial production 477Factory employment and pay rolls 478Building 479Commodity movements 480Wholesale trade 480Retail trade 481Bank suspensions and commercial failures 482

Foreign banking and business conditions:Currency and banking reform in Ecuador 483Currency and banking reform in Estonia 485Annual report of the National Bank of the Kingdom of Serbs, Croats, and Slovenes 487

Financial statistics for foreign countries:Condition of central banks _ 491Condition of commercial banks 493Discount rates of 32 central banks - ; 493Money rates in foreign countries 494Gold exports and imports of principal countries 495Foreign exchange rates 496Price movements in principal countries

Wholesale prices 497Retail food prices and cost of living

: 499Rulings of the Federal Reserve BoardLocation of branches of State member banks 500Law department

Revision of Regulation KForeign banking corporations 501Opinion of trial court in suit against Federal Reserve Bank of Atlanta, check collection transaction 505Suggested change in standard form of trade acceptance 510

Regulations by the Comptroller of the Currency defining "investment securities" 511Changes in national and State bank membership , 512Fiduciary powers granted to national banks 513

Detailed banking statistics for the United States 514IV


FEDERAL RESERVE BULLETINVOL. 13 JULY, 1927 No. 7

credit at mid-year

REVIEW OF THE MONTHContinued growth of bank credit, particu-

larly in financial centers, a sustained volumeof production and trade, and

Business and aksence of further declines in

the general level of commodityprices are the outstanding char-

acteristics of the credit and business situationat the close of the first half of 1927. Betweenthe seasonal low point in February and themonth of June loans and investments of mem-ber banks in leading cities increased by morethan $900,000,000. Demand for credit to pro-vide for the current requirements of trade andindustry has been at a constant level, and thegrowth of member bank credit has been in loanson stocks and bonds and in holdings of invest-ment securities. Conditions in the moneymarket have been fairly easy, and money rateshave moved within a narrow range. The vol-ume of reserve bank credit in use has fluctu-ated since the end of January around the$1,000,000,000 level, current changes beinginfluenced chiefly by international gold move-ments and by temporary conditions incidentto large-scale Treasury operations.

Member bank credit, as indicated by weeklyreports of member banks in leading cities, was

in larger volume at mid-yearGrowth of ^ a n a a n y previous time.

credit In New o . ,i i , ,-,

York City and S m c e t h e e a r l y p a r t f t h e y e a routside there has been a rapid increase

in member bank loans and in-vestments in most parts of the country, but therate of growth has been greatest at memberbanks in New York City. Between February andJune the percentage of increase of loans and in-vestments at reporting banks in New York Citywas 8 per cent, while at the other reporting

banks it was 3 per cent. This is the first timesince 1924 that the volume of credit extendedby New York City banks has shown a con-siderable growth, the level of loans and invest-ments of these banks having been fairly con-stant both in 1925 and in 1926. During theseyears, and particularly in 1926, the increase inthe total of member bank credit in use w^ asalmost entirely at banks outside of New YorkCity.

The growth of bank credit during the firstsix months of 1927, as already indicated, con-

sisted almost entirely of anincrease in the banks7 holdingsof investments and in their

loans on securities, while the volume of all otherloans, representing largely bank credit used tofinance the current operations of trade andindustry, showed but little change. The fol-lowing table show s^ the increase in the differentclasses of loans and investments of reportingmember banks between February, when theseasonal liquidation had come to a close, andthe month of June:

REPORTING MEMBER BANKS

[Monthly averages of weekly figures. In millions of dollars]

Character ofgrowth

Loans and investments, total_ __ __Loans on securities _All other loans _ _ __Investments ______ _ _ _

February,1927

19, 7495,6008,5625, 587

June,1927

20,6825,9908,6486,044

Increase

93339086

457

The large increase of investments, which isreported for city banks throughout the coun-try, reflects a growth of the volume of loanablefunds which have not been absorbed by anincrease in the commercial demand for bank

455


456 FEDEKAL RESEKVE BULLETIN JULY, 1927

credit. That the banks have employed thesefunds in the purchase of securities, includingobligations of the United States Governmentand other securities, may be ascribed in partto the large volume of flotations, amountingsince the beginning of the year to about$3,500,000,000, and to the steady rise of secu-rity prices, which has made it profitable forbanks to purchase and hold securities. Bankfunds, however, have also been utilized inincreasing volume in the extension of loans onstocks and bonds, which have also increased innearly all the sections of the country, but haveshown the largest growth at banks in Chicago,Cleveland, and New York City.

In this growth of loans on securities theprincipal factor has been the increase in loans

extended to brokers and toGrowth of dealers in securities by member

brokers'loans b a n k g ^ N e w Y o r k C i t y f o r

their own account and for account of theircorrespondents. Funds not immediately re-quired locally and not invested in securitieshave flowed in large volume to the New Yorkbanks and have been placed by them as col-lateral loans on the stock exchange. The con-stantly rising level of security prices and thecontinued activity on the exchange haveresulted in a growing demand for bank fundsto finance the operations on the exchange, andthe volume of brokers' loans, after increasingby nearly $400,000,000 si nee February, was inJune at the highest level since the publicationof the reports at the beginning of 1926. In-crease in the different classes of brokers' loansbetween February and June are shown in thetable below :

LOANS TO BROKERS AND DEALERS IN SECURITIES

[Monthly averages of weekly figures. In mill ions of dollars]

Total _._For own accountFor account of out-of-town banks.For account of others

February,1927

2,733841

1,127765

June, 1927

3,1151,0781,180

857

Increase

3822375392

There has been a growth during the periodin brokers' loans of all three classes, thoughthe largest increase has been in loans placed bythe New York banks for their own account.This large growth of New York bank funds inthe market is accounted for in part by theincreased use of their ordinary deposits forthis purpose, and represents also the use offunds placed on deposit with them by banksthroughout the country. Balances held forother banks by New York City banks haveincreased considerably since the early part ofthe year and have been the source of a part ofthe growth in the New York banks' stockexchange account. But with call-money rat^sconstantly at a much higher level than the ratepaid on bankers' balances, the out-of-townbanks in many instances have instructed theirNew York correspondents to place their fundson the street, as is indicated by the growth ofbrokers' loans for account of these banks.Finally, a part of the increase in the fundsloaned to brokers and dealers has come fromfunds deposited in New York by foreign banksand by corporations, which have made thisuse of temporarily idle funds at their disposal.These brokers' loans, carried in the table underthe caption "For account of others," haveshown an almost continuous growth from about$500,000,000 in May, 1926, to about $850,-000,000 in June of this year. This rapid in-crease in the figures may represent in part anincrease in the accuracy of the reports, as theyhave become more familiar to the reportingbanks, but it also appears to indicate anincreasing volume of funds at the disposal ofcorporations available for temporary invest-ment. It is primarily the growth in this classof loans that has carried the total of brokers'loans to a higher level than the peak of 1926,since loans by the New York banks for theirown account and for account of their bankingcorrespondents, though showing a rapid growththis year, are still in considerably smaller vol-ume than in the early weeks of 1926.


JULY, 1927 FEDEKAL EESEKVE BULLETIN 457

Accompanying the increase in member bankloans and investments since last Frebruary

there has been a large growthf o ? * their d ePO s i t s- The chart

reserve bal- shows the course of loans andances investments and of net demandand time deposits of reporting member bankssince 1922. The growth in time deposits hasbeen continuous throughout the period of morethan five years covered by the chart, and the

BILLIONS OF DOLLARS BILLIONS OF DOLLARS22

20

18

22

20

18

16

12

10

8

K

2

0

1 1

REPORTING MEMBER BANKS

Loans & Investment*-

>

_^XC Net Demand ^ ^ / plus TrVne Deposits

Net Demar

/

Time

^ ^

d Deposits

Deposijs^. . -

12

10

.1922 1923 1924- 1925 1926 1927

total of this class of deposits has doubled duringthat time. Net demand deposits, on theother hand, after a rapid rise in 1924, showedbut little growth in 1925 and 1926. Since theearly part of this year there has been a largeincrease in net demand deposits, but it is stilltoo early to determine whether this growthrepresents a temporary fluctuation or a definiterise in the level of this class of deposits. Therehas been a correspondence, however, betweenthe growth in demand deposits and the increaseof short-term loans on stock-exchange collateral.

At the reserve banks the increase in memberbank deposits has been reflected in a growth ofmember bank reserve balances, the course ofwhich since the beginning of 1922 is shown onthe chart. In 1922, in 1924, and again in 1927,when the liabilities of member banks on de-mand deposits increased, this has resulted in anincrease of their reserve requirements muchlarger than that caused by a growth of timedeposits against which only a 3 per cent reserveis required. For the entire year 1924 thisincrease amounted to about $300,000,000, andfrom February to June of this year it wasabout $90,000,000. An additional factor inthe growth of reserve requirements, and, there-fore, of reserve balances, has been the factthat much of the growth in demand depositsin 1927 has been at banks in the centralreserve cities, New York and Chicago, wherea 13 per cent reserve is required against de-mand deposits. At the New York banks this

MILLIONS OF DOLLARS2400

2200

2000

1800

1600'

MEMBER BANK RESERVE BALANCES

1922 1923 1924 1925


2200

2000

1800

1600

year's growth of demand deposits has followedupon two years during which the volume of thisclass of deposits, though fluctuating seasonally,has persistently trended downward.

The growth of member bank deposits, andof their reserve requirements, has not given rise

to an increased demand forConstant level

r e s e r v e b a n k c r e d i t because themember banks were able tobuild up their reserve balances

through the deposit with the reserve banks ofgold received from abroad and of currency

of reserve bankcredit


458 FEDERAL RESERVE BULLETIN JULY, 1927

returned from domestic circulation. Duringthe first half of 1927 the member banks havereceived a considerable volume of funds arisingout of gold movements as well as out of the de-crease in the demand for currency, the volumeof which in June was only slightly abovethe low point following upon the seasonaldecline at the turn of the year. Consequently,the volume of reserve bank credit, notwith-standing the growth in the demand for reservebalances, showed little increase between Feb-ruary and June of this year and was at midsum-mer $100,000,000 below the level of a year ago.

TREASURY FINANCE

Large-scale refunding, debt retirement bypayment at maturity and by purchase ofsecurities direct from holders prior to maturity,sale of long-term bonds for cash, receipts underforeign debt settlements, and receipt of thequarterly tax payments are items in the Treas-ury's June financing, which in the aggregategave rise to an exceptionally large volume oftransactions. Eeceipts and disbursements re-ported by the Treasury on all accounts for thesingle day, June 16, exceeded $1,300,000,000receipts running above $760,000,000 and ex-penditures above $550,000,000, resulting in anincrease in the Treasury's net cash balance bymore than $200,000,000 on this day.

The June exchange offering.It will berecalled that in March holders of second Libertybonds were offered in exchange 3-5 year 3 3^2per cent Treasury notes; in May they w e^reoffered a 16-20 year 33/g per cent bond, and inJune the Treasury invited holders who did notelect to accept the Treasury's exchange offer tosubmit proposals for sale of their bonds directto the Government. As a net result of theseoperations, including retirements on all accounts,the amount outstanding of the second Libertyloan was reduced from $3,104,000,000 on Feb-ruary 28 to about $1,274,000,000 on June 30,the reduction amounting to $1,830,000,000. OnMay 9 the Treasury announced that all secondLiberty bonds still outstanding on November15 of this year will be redeemed on that date.

The Treasury procedure in June, of issuing along-term security to provide for its immediatecash requirements and for refunding a portionof the short-dated debt, was in line with itsestablished policy of debt retirement, reduc-tion of interest rates, and arrangement of

maturities with reference to the convenienceof the Treasury in effecting retirements in thefuture at its regular quarterly financing. Whilethe new- issue was made in part to provide forcash requirements, interest attaches principallyto the offering in exchange for second Libertyloan bonds.

The refunding of these bonds at this timewas optional wTith the Treasury, since theyhad not been called for payment, and whileredeemable at the option of the Government onsix months' notice on or after November 15 ofthis year, they would not mature, except undercall, until November, 1942. Since, however,the bonds were running at a comparativelyhigh rate of interest4 3^ P e r c e n^ for all of thesecond Liberty loan bonds outstanding, except-ing a small block of some $21,000,000 of uncon-verted 4 per cent bonds of the original issuethe opportunity presented itself for refundingat a rate nearer current yields on other securi-ties. The call for redemption in November wasaccordingly issued (on May 9), and later (onMay 31) the offering of new bonds in exchangewas announced.

The exchange offering in March, whicheffected a conversion of some $1,360,000,000 ofthe second 4 Y/i per cent bonds into 3-5 year31/2 per cent Treasury notes, appealed prin-cipally to holders of comparatively large blocksof the second Liberty bonds, more than half ofthe exchange subscriptions being receivedthrough the New York Federal Reserve Bankand a large proportion of the bonds tenderedin exchange being of high denominations. Ofthe coupon bonds tendered in exchange at thistime, over 88 per cent were in the denominationof $10,000 and less than 2 per cent in denomi-nations of $50, $100, and $500. Of the couponbonds in denominations of $10,000, which wereoutstanding in the amount of about $1,366,-000,000, some $1,026,000,000, or about 75 percent, were exchanged for the new notes; of the$1,000 bonds, only about $115,000,000 out of$605,000,000, or less than 20 per cent, wereexchanged, and of bonds in smaller denomina-tions less than $17,000,000 out of $316,000,000,or about 5 per cent, came in.

These figures indicate that the proportionas well as the aggregate amount of largeindividual holdings in the bonds left outstand-ing w^ as materially reduced by the Marchexchange operation. For coupon bonds theproportion outstanding in the $10,000 denomi-nation was reduced approximately from 60 to30 per cent, and a similar or even greaterreduction, it is stated, was probably effected


JULY, 1927 FEDERAL RESERVE BULLETIN 459

in the proportion of large holdings for registeredbonds.

The condition of wide distribution of theremaining second Liberty bonds in relativelysmall holdings made unlikely any quick generalresponse to the new offering in exchange, an-nounced in May. It was believed, however,that some small as well as large holders of thesecond Liberty bonds, who had not elected toexchange their bonds for notes in March,might accept the offering of a long-term bondin exchange for a bond which, under the noticeof call for redemption, had in the meantimebecome definitely payable in November. Thebonds offered in exchange for second Liberty4?s and 4Jkfs, par for par, were to be datedJune 15, bear interest at 3% per cent, matureon June 15, 1947, and become payable on fourmonths7 notice on and after June 15, 1943.The offering in exchange was held open untilJune 30, when subscriptions received amountedin the aggregate to $245,000,000.

Purchases under proposals submitted byholders.Holders of second Liberty's were alsogiven an opportunity to submit proposals forthe sale of their bonds direct to the Govern-ment, with the understanding that the Treasurymight, if acceptable terms were submitted,purchase a limited amount of the bonds. Inresponse to this invitation, a total of $72,-000,000 bonds were tendered for sale to theGovernment, and proposals were accepted for$63,000,000, for the most part AM per centbonds taken at prices averaging $100.48.

Summary of second Liberty loan operations.Operations affecting the amount of the secondLiberty loan bonds outstanding may be sum-marized as follows:Original issue, Nov. 15, 1917 $3,807,865,000Redemption to Mar. 15, 1927 703,345,000Refunded into 3J^ per cent notes,

operation of Mar. 15, 1927 1, 360, 456, 000Refunded into 3% per cent bonds of

1943-1947 to June 30, 1927 1 245, 000, 000Purchased direct from holders under

tenders for sale, June 16-22, 1927_ 1 63, 000, 000Other redemptions, Mar. 15-June 30,

1927 163, 000, 000Balance left outstanding June 30,1927 11, 274, 000, 000

Outstanding debt maturities.One effect ofthe recent operations has been to reduce theamount of the debt payable at the optionof the Government during the period fromNovember 15, 1927, to November 15, 1942,but considerable amounts of the debt willnevertheless mature or become payable duringthis period.

i Preliminary.5221527 2

In addition to the second Liberty loan bondsleft outstanding, which mature under call inNovember, over $1,000,000,000 of Treasurynotes and certificates mature during the presentfiscal year; the third Liberty loan, of whichover $2,100,000,000 is outstanding, comespayable without option on September 15, 1928;the $1,360,000,000 of notes issued in exchangefor second Liberty's in March of this yearwill be redeemable in March of 1930; consols of19oO, outstanding in the amount of nearly$600,000,000, will be redeemable after April 1,1930; the first Liberty loan, outstanding in theamount of some $1,939,000,000, will be redeem-able from June 15, 1932, to June 15, 1947; andthe fourth Liberty loan, outstanding in theamount of nearly $6,300,000,000, will beredeemable from October 15, 1933, to October15, 1938.

The offering for cash.In part, the offeringof bonds announced on May 31 was for*cashsubscriptions in addition to those in exchangeof second Liberty bonds. The offering forcash was at: 100 3^ 4 and it was proposed toallot some $200,000,000 of bonds, acceptingin part payment Treasury certificates maturingJune 15. The offering for cash was largelyoversubscribed, total subscriptions amountingto $617,600,804. Allotments of these sub-scriptions were considerably in excess of theamount originally proposed to be allotted,totaling $250,000,000, distributed to the reservebanks as shown in the table given below.

SUBSCRIPTIONS FOR 3% PER CENT TREASURY BONDSOF 1943-1947

[In thousands of dollars]

Federal reserve district

TotalBostonNew YorkPhiladelphiaCleveland iRichmond __ _AtlantaChicagoSt. LouisMinneapolis __ - _ _Kansas CityDallasSan Francisco.

Subscriptions for cash

Received

$617, 605

68, 537118, 591

92, 35054, 55822,05339, 36172, 01413, 5409,1798,009

23, 85895, 556

Allotted

$249, 598

29, 53641, 67539,45220,9869,867

19, 43131, 4406,4434,5394,005

11,31830, 908

Subscriptiorsin exchange

i 245, 057

11, 76454, 61124, 22031,1345,1093,617

34, 53511, 6338,774

17, 4104,6339,826

1 Includes $27,791,000 of exchanges effected at the Treasury.

Debt reduction.Since the June exchangeoffering was at par, bond for bond, the principalamount of the debt was not affected by theseoperations. Reduction in the amount of thedebt was effected in June, however, by pay-ments in redemption of Treasury certificates



maturing June 15. Certificates of this issuewere outstanding at the end of May in theamount of $379,000,000, and cash subscrip-tions for the new bonds were allotted for atotal of $250,000,000, giving a net reduction onthese accounts of some $129,000,000. A furtherreduction of $138,000,000 was effected Bypurchases of second Liberty bonds. Retire-ments during the month were made fromforeign debt repayments amounting to $85,-271,300, and from other funds available in theTreasury amounting to about $275,000,000.On all accounts debt retirements for the monthamounted to $362,000,000, bringing totalretirements for the fiscal year above$1,100,000,000.

During the past eight years the amount ofthe debt has been reduced by about $7,000,-

000,000, distributed by sources as shown in thetable following:

DEBT RETIREMENTS, CLASSIFIED BY SOURCE[In thousands of dollars]

Fiscal years 1920-1927

Total

Total ! 6,972,599Chargeable against ordinary re- |

ceipts, total ! 3,262,884Sinking fund i 2,074,080Foreign debt repayments 2Received for estate taxes..Franchise taxesForfeitures

SurplusGeneral fund in the Treasury.

i9, 777

141, 02411,914

2, 692,1081, 017, 606

1927 i

1,13.1,309

519, 555333, 528179, 216

1,2325,578

635, 8103 24, 055

1920-1926

5,841,290

2, 743,3291, 740, 552

. 790,56166, 088

139, 7926,336

2, 056, 2981,041, 663

1 Preliminary figures.2 Includes purchases from foreign debt repayments and cancellations

of securities secured from foreign governments under foreign debtsettlements.

3 Increase in general fund.

EARNINGS AND EXPENSES OF MEMBER BANKSAll member banks in the Federal reserve

system are required to submit semiannualreports of earnings, expenses, and dividends,State member banks reporting to the FederalReserve Board and national banks reportingto the Comptroller of the Currency. Figuresbased on reports in 1926 are presented insummary form in the following tables, and inconsiderable detail in tables on pages 549 to553 of this issue of the BULLETIN. Statisticsshowing the results of operations of nationalbanks during the last six months of 1926 werefurnished by the Comptroller of the Currencyfor separate publication in the BULLETIN inorder that more timely use might be made ofthem than should they become available onlywith publication of the comptroller's annualreport at the end of the year.1

last half of 1926.During the last half of1926 member banks had combined net profitsof $208,422,000. This amount, representingan annual rate of return of about 8.52 per centon the banks7 capital funds,2 was nearly$15,000,000 smaller than the figure reportedfor the first half of the year, when the bankshad profits at the rate of about 9.34 per cent.Earnings and expenses of all member banks

1 Statistics tabulated from the reports of member State banks are

published from time to time in the FEDERAL RESERVE BULLETIN (seep. 383 of the issue for May, 1927); national bank figures are published inthe Annual Report of the Comptroller of the Currency (see pp. 42 to 54and 527 to 544 of the report for 1926); and all member bank statistics,together with some analytical material, have been published in previousissues of the BULLETIN (see pp. 402 to 405 of the issue for June, 1925, pp.869 to 873 of the issue for December, 1925, pp. 409 to 414 of the issue forJune, 1926, and pp. 22 to 28 of the issue for January, 1926).

2 Capital funds include capital, surplus, and undivided profits exclu-

sive of reserves for taxes, interest, etc., accrued; averages of amountsshown by abstract of condition reports for June 30, 1926, and December31,1926, were used.

for six-month periods since June 30, 1925, aresummarized in the following table:EARNINGS AND EXPENSES OF ALL MEMBER BANKS,

JUNE 30, 1925, TO DECEMBER 31, 1926[In thousands of dollars]

Gross earnings _.Expenses

Net earnings.__Total lossesRecoveries

Net losses lNet addition to

profits__

Last 6 months of 1926 (9,251banks)

Amount

1,033,816738,276295, 540110,84923,73187,118

208,422

Increase or decreaseas compared with

First 6monthsof 1926

+37,769+32, 696+5,073

+14,168- 5 , 544

+19, 712

-14, 639

Last 6monthsof 1925

+46, 646+34, 751+11,895+1,893

-12, 928+14,821

-2,926

First 6monthsof 1926(9,372

banks)

996,047705, 580290,46796,68129, 27567,406

223,061

Last 6monthsof 1925(9,482

banks)

987,170703, 525283, 645108,95636, 65972,297

211,348

i Total losses less recoveries on assets previously charged off.

Gross earnings of member banks, at $1,-034,000,000 for the last half^ of 1926, werenearly $40,000,000 larger than in the precedingsix monthsin fact, they were larger than inany six-month period during the past fouryears for which semiannual figures for all mem-ber banks are available. Expenses, however,showed an increase of more than $30,000,000,owing largely to increase in the amount of in-terest paid to depositors and in expendituresfor salaries and wages. Net losses showed anincrease of about $20,000,000 as a result of in-crease in total losses, amounting to $10,000,000for member State banks and $5,000,000 for



national banks, and decline in recoveries,amounting to approximately $3,000,000 forboth classes of banks.

K"ew data.Important changes were madein the form in which earnings and expenseswere reported for the last half of 1926. Of thenew items of information supplied for thefirst time in the reports for this period prob-ably the most significant are those providing aclassification of interest, discount, and divi-dends received to show separately amountsreceived on loans, on investments, and onbalances with other banks, and items provid-ing a classification of interest paid on depositsto show separately interest paid on timedeposits, on demand deposits, and on balancesdue to other banks.

Interest received.Member bank earningsconsist, for the most part, of interest received.During the last half of 1926 gross earningsamounting to $1,034,000,000 included interestreceived amounting to $867,000,000, or nearly85 per cent of the total; this was largely interestreceived on loans and investments, but in-cluded in addition a relatively small amountof interest received on balances with otherbanks. Owing to the form in which some of thebanks had kept their records during the period,some of them were unable to supply the classi-fication of interest received and interest paidwhich was called for on the new form of report;however, since more than 97 per cent of thetotal amount of reported interest received wascompletely classified, the distribution of theclassified portion according to the sources fromwhich it was derived, as shown in the followingtable, shows the relative importance of thedifferent classes of earning assets and servesas a means of approximating the relative ratesat which income was earned upon each class:INTEREST RECEIVED BY MEMBER BANKS DURING THE

LAST SIX MONTHS OF 1926

Interest and discount received on loans__Interest and dividends received on in-

vestmentsInterest received on balances with other

banksTotal, classified interest received *_

Amounts(in thou-sands ofdollars)

609,866213,85619,854

843,576

Percent-age dis-

tributionof total

73252

100

Approxi-mate

rate ofreturn 2

Per cent5.55.02.05.0

1 Of total interest, discount, and dividends received, amounting to

$867,477,000 for the half year, $23,901,000, or 2.8 per cent, was not classi-fied in the banks' reports of earnings and expenses.2

Unclassified interest, discounts, and dividends received were appor-tioned (for each class of bank in each district separately) between thethree classes indicated, on the basis of the distribution of the classifiedamounts; the approximate rates of return were estimated by dividingthe resulting totals by the amounts of the respective assets as reportedfor December 31,1926.

Interest paid on deposits.Of the totalamount of interest received that was fullyclassified, $610,000,000, or about 73 per centwas derived from the banks' loans; $214,000,-000, or about 25 per cent, was interest anddividends received on investment holdings; and$20,000,000, or about 2 per cent, was interestreceived on balances with other banks. Com-parison of these amounts with the volume ofthe banks' loans and investments and theaggregate amount of balances due from otherbanks, as reported at the end of December,1926, indicates in a general way the averagerates at which income was earned on theseassets. Interest and discount on loans repre-sented an annual rate of return of somewhatless than 5.5 per cent on loans as reported forDecember 31, 1926; the corresponding ratiofor investments was about 5 per cent and forbalances with other banks about 2 per cent.It should be borne in mind that to calculateaccurately the average rates of income on thevarious classes of assets would necessitate com-parison between amounts of income and theaverage volume of the assets from which incomewas derived. Such averages are not at presentavailable and are only approximated by theamounts shown by reports of condition forDecember 31, 1926.

Interest paid on deposits by member banks-during the last six months of 1926 totaled$343,000,000. Of this total, about $312,000,-000, or nearly 91 per cent, was fully classifiedin the banks' reports of earnings and expenses.The distribution of classified deposit interestas between interest paid on time, on demand,and on bank deposits is shown in the followingtable, together with approximate rates atwhich interest was paid on the three classesof deposits.INTEKEST PAID ON DEPOSITS BY MEMBER BANKS DURING

THE LAST SIX MONTHS OF 1926

Interest paid on time depositsInterest paid on demand depositsInterest paid on balances due to other

banksTotal, classified interest paid 1

Amounts(in thou-sands ofdollars)

174,283101,49535, 752

311, 530

Percent-age dis-

tributionof total

563311

100

Approx-imate

rate paid2

Per cent3.51.52.02.0

1 Of total interest paid amounting to $343,321,000 for the half year,$31,791,000, or 9.3 per cent, was not classified in the banks' reports ofearnings and expenses.2

Unclassified interest paid was apportioned (for each class of bankin each district separately) among the three classes of deposit intereston the basis of the distribution of classified interest; the approximaterates charged were estimated by dividing the resulting totals by theamounts of the respective deposits as reported for December 31, 1926.


462 FEDEEAL RESERVE BULLETIN JULY, 1927

The table shows that interest paid on timedeposits amounted to $174,000,000 and con-stituted about 56 per cent of the total amountof classified deposit interest; interest on de-mand deposits amounted to $101,000,000, orabout 33 per cent of the total; and interest onbalances due to banks amounted to $36,000,000,or about 11 per cent of the total. Interest paidon time deposits represented an annual rateof approximately 3.5 per cent on the amountof time deposits reported on December 31,1926, and interest paid on demand depositsand on balances due to other banks representedannual rates of approximately 1.5 per cent and2 per cent on the amounts of these two classesof deposits. Again, it should be noted thatthese ratios are based on amounts of depositsat the end of 1926 rather than on averages forthe six months' period and, since the volume ofdeposits fluctuates considerably from monthto month, the ratios represent only approxi-mations of average rates paid; furthermore,the rates are arrived at by comparing interestpaid with the total volume of the several classesof deposits which, particularly in the case ofdemand and bank deposits, include certainamounts on which little or no interest is paid.

Year 1926.Net profits for the entire yearending December 31, 1926, at about $431,000,-000, w e^re larger than in any of the past fouryears for which earnings and expense figuresfor all member banks are available by calendaryears, and were only slightly smaller than forthe year ending June 30, 1926, when net profitsat $434,000,000 were larger than in any pre-ceding fiscal year. Profits during the calendaryear- 1926 were $12,000,000 larger than theyear before. The increase was the net resultof a growth of $112,000,000 in gross earnings,accompanied by an increase of $77,000,000 intotal expenses, an increase of $14,000,000 intotal losses, and a decline of $9,000,000 inrecoveries on assets previously charged off.Earnings and expenses of member banks in1926, together with increases and decreasesfrom the year before, are shown in the follow-ing table, by class of bank:

EARNINGS AND EXPENSES OF MEMBER BANKS DURING1926

[In millions of dollars]

Gross earnings.Total expenses

Net earnings._Total losses.Recoveries

Net losses!

Net additionto profits

Loans and invest-ments2.

Capital funds 2 3

Allmem-ber

banks

2,0301,444

586

20853

155

431

31, 3894,820

Na-tionalmem-ber

banks

1, 213859

354

14637

109

245

19, 2623,077

Statemem-ber

banks

817585

232

6216

45

187

12,1271,743

Increase or decrease in1926 as compared with1925

Allmem-ber

banks

+112+77+35

+ 14- 9

+23

+12

+1, 473+231

Na-tionalmem-ber

banks

+53+37+17

+ 10- 6

+16

+1

+697+107

Statemem-ber

banks

+58+40+18+5- 2

+7

+11

+775+124

1 Total losses charged off, less recoveries on assets previously charged off.2 Averages of amounts from reports of conditions for four call dates

during year.3 Capital, surplus, and undivided profits (exclusive of reserves for taxes

interest, etc., accrued which of necessity have been included in undividedprofits as used in previous compilations of member-bank earnings andexpense statistics).

During 1926 gross earnings of national andof State member banks showed approximatelyequal increases. Total expenses of bothclasses of banks also increased in about equalamounts, and as a result the increase in netearnings, amounting to about $35,000,000 forall member banks, was about equally distrib-uted between national and State members.However, the net losses of national banksincreased by about $16,000,000 as againstonly $7,000,000 for State member banks, sothat the increase of $12,000,000 in the netprofits of all member banks reflected largelythe increased profits of State member banks.

Analysis of earnings and expenses.In thepreceding table the comparisons relate to abso-lute amounts of earnings and expenses and areaffected by variations in the volume of oper-ations of the different groups of banks. In the



following table earnings and expenses areexpressed as amounts per $100 of earningassets3 in order to eliminate from the com-parisons the direct effect of differences in thevolume of the banks' operations.

ANALYSIS OF MEMBER BANK-EARNINGS ANDEXPENSES DURING 1925 AND 1926

Gross earningsTotal expenses

Net earnings.-Total lossesRecoveries ._.

Net losses1

Net addition to prof-its

Earning assets per $1of capital funds

Net profits per $100of capital funds2 . .

All member banks

Total

1926

$6.474.60

1.87

.66

.17

.49

1.37

1925

National

1926 1925

State

1926

Amounts per $100 of earning assets

$6. 414.57

1.84

.65

.21

.44

1.40

$6.304.46

1.84

.76

.19

.57

1.27

$6. 254.43

1.82

.73

.23

.50

1.32

$6.744.82

1.91

,51.13

.37

1.54

1925

$6.684.80

1.88

.50

.16

.34

1.54

Other ratios

6.51

8.95.

6,52

a 146.26

7.96

6.25

8.22

6.96

10.70

7.01

10.83

1 Total losses charged off, less recoveries on assets previously charged

off.2 Obtained by dividing net profits by capital funds; equivalent to the

product of the two preceding rates.

It is worth noting that the larger part of theincrease in the gross earnings of member banksbetween 1925 and 1926 was due to the increaseof $1,500,000,000 in their earning assets, andthat only $20,000,000 of the total of $112,000,-000 of increase was due to the rise from $6.41to $6.47 in the rate of return per $100 ofearning assets.

Increase in the rate of gross earnings of allmember banks from $6.41 per $100 of earningassets in 1925 to $6.47 in 1926 reflected

s Earning assets as here used Include only the principal assets from

which direct income was derived; averages of the amounts of theseassets from condition reports for four call dates during the year wereused as a basis for the ratios.

increases for both national and State memberbanks. Both classes of banks had higher ratesof expenses and of net losses in 1926, however,and the margin of net profits per $100 of earningassets, in the case of national banks, declinedfrom $1.32 to $1.27 and, in the case of Statemember banks, remained at $1.54.

Comparison of the volume of earning assetsand of capital funds as in 1925 and in 1926shows that, for national banks, capital fundsincreased at about the same rate as earningassets, the banks having $6.26 of earning assetsfor each dollar of capital funds in 1926 and$6.25 in 1925. Since the margin of profitper $100 of earning assets decreased from$1.32 to $1.27 per $100 of earning assets, therate of net return on the banks' investedfunds declined from 8.22 4 per cent in 1925to 7.96 per cent in 1926. The increase inearning assets of State member banks wasproportionately smaller than the increase inthe capital funds of these banks, so that therate of return on invested funds declined from10.83 per cent in 1925 to 10.70 per cent in 1926,notwithstanding the fact that the margin ofprofit per $100 of earning assets was the samein both years.

The higher rate of return on the capitalfunds of State member banks, as comparedwith national banks, is explained in part bythe fact that these banks had a larger volumeof earning assets in relation to the amount oftheir invested capital than did the nationalbanks and in part by the fact that the marginof profits per $100 of earning assets was largerfor the State banks than for national banks.The larger margin of profits earned by Statebanks is due largely to their higher rates ofearnings derived from other sources thaninterest and dividends received. Amongthese other sources of income are profits onsecurities sold, trust department receipts, com-missions, and exchange. The amount of ex-penses per $100 of earning assets was somewhathigher for State than for national banks andthe rate of net losses somewhat lower.

* Obtained by dividing the amount of net profits by the amount ofcapita] funds; equivalent to the product of 1.32 and 6.25.



STATISTICAL WORK OF THE FEDERAL RESERVE BOARD AND BANKS IN 1926-27The principal developments in the statisti-

cal work of the Federal reserve system duringthe past year have been in the direction of in-creasing the amount of attention given to thoseproblems of the system that relate to generalcredit conditions. The work done on theseproblems, which has been primarily for thecurrent use of the Federal Reserve Boardand the officers and directors of the Federalreserve banks, has been reflected in theannual report of the board for 1926, in theFEDERAL RESERVE BULLETIN, and in themonthly reviews of the various Federal reservebanks. Reference to the BULLETIN for May,June, and July of this year will show that thestatistical material carried has been rearrangednnd elaborated with a view to presenting moreadequately, as explained in the May BULLETIN,the data which relate most directly to the useof reserve bank credit and the general bankingand credit situation in the United States.Among new features included have been a tableshowing currently the reserve bank buyingrates on acceptances, which apply to aboutone-fourth of the total volume of reserve bankcredit in use, and a table showing the monetarygold stock of the United States, changes inwhich are one of the three factors influencingthe demand for reserve bank credit, along withchanges in the demand for currency andfor member bank reserves. More infor-mation is also currently presented in the BUL-LETIN with reference to gold imports and ex-ports of foreign countries, and their availablestocks of monetary gold, which influence andare influenced by the policies of foreign centralbanks, and to the annual reports of thesebanks, which describe their policies and theeconomic developments which have given riseto these policies. The BULLETIN has showncurrently since January, 1924, the official dis-count rates of about 30 central banks; sincelast November it has also shown the moneyrates for the principal kinds of paper in theopen market in foreign financial centers. Thecourse of these rates, in comparison with ratesin New York City, has also been shown fromtime to time by charts published and discussedin the BULLETIN. The prevailing rates chargedcustomers by representative banks in variouscities in the United States, as distinguishedfrom so-called open-market rates, have beengiven in the BULLETIN since 1918; the accu-racy and representativeness of these rates hasbeen increased by the adoption of new methodsof reporting, and they are now shown inthe BULLETIN in more easily usable form.

Studies of the interrelated changes in moneyrates, currency in circulation, international andinterdistrict movements of funds, volume ofreserve bank credit in use, and the loans, in-vestments, and deposits of member and non-member banks have been continued. Thesehave shown, in some cases, the need for betterbasic data, more accurate or more detailed, andteps have been taken, in cooperation with the

Treasury, the Comptroller of the Currency,and the banking authorities of the severalStates, to achieve the necessary improvements.Among the new figures which have recentlybecome available are those showing on a weeklybasis bankers' balances held by member banksin about 90 cities, also a semiannual classifica-tion of interest, discount, and dividends re-eived by member banks and of interest and

discount paid. The form in which the board'sMember Bank Call Report is published wasrevised during the year, with the effect ofmaking the detailed call data for memberbanks, including both national and Statemembers, more readily available.

At the end of June arrangements were madeto advance the date of release for publicationof the board's weekly statement of conditionfor reporting member banks in New Yorkand Chicago. These figures, which relate toWednesday of each week, are now released thenext day (Thursday) instead of on the followingMonday.

Construction of the boarcPs new index ofindustrial production was finished during theyear, and the index was presented in theBULLETINS for February and March, 1927.This index has a broader and more recent base(1923-1925) than the one which it supersedes(production in basic industries), is more com-prehensive, and has been constructed by im-proved methods. Similar revisions of otherindexes used by the board and indexes usedby the various Federal reserve banks have alsobeen made or are under way. The board'smonthly statements to the press regarding thecondition of wholesale and retail trade havebeen reorganized and simplified.

The foregoing statement of developmentsduring the present year is to be considered inconnection with the similar and more compre-hensive surveys that were published in theBULLETIN for July, 1926, and July, 1925, andwith the following notes, referring to selecteddevelopments at the Federal reserve banks.

Statistical work of the reserve banks.Thestatistical work of the system has comprisedduring the year an increased amount of analy-


JULY, 1927 FEDEKAL RESERVE BULLETIN 465

sis of the financial history of individual mem-ber banks, as shown by series of their financialstatements and files of the official reports ofexaminers. One of the objects of these analy-ses has been to develop significant statisticalratios that can be used by the reserve banksin following currently changes in the positionand financial strength of the individual mem-ber bank. Several of the reserve banks, amongthem St. Louis and Minneapolis, are develop-ing such ratios, some of which are now beingsubjected to experimental test. The problemsto which this work chiefly relates are of differ-ent order from those which have usually con-fronted the central banks of Europe or thereserve banks in the larger financial centers ofthis country, and the statistical work now be-ing done on these problems is essentially newin character.

Boston.Continued study of seasonal in-fluences affecting money rates and the moneymarket. Organization of New England bank-ing data by localities. Annual analysis of mem-ber bank earnings and expenses. Revision of in-dexes of business activity. Further analysis ofdata for department stores, especially depart-mental data, and extension of reporting service.

New York.Further analysis of current con-ditions in the New York money market, with spe-cial reference to the volume and cost of reservebank credit in use. Study of the growth of timedeposits. Periodic analyses of profits of about400 industrial and mercantile corporations andabout 300 other corporations. Revision of in-dexes relating to prices, production, and trade.

Philadelphia.Current analysis of memberbank borrowings in 20 cities. Abbreviatedcondition reports received monthly since Jan-uary, 1927, from about 80 member banks in 17cities not on the weekly reporting list. Analy-sis of member bank earnings and expensespublished. Preparation of additional or re-vised indexes of production and trade for indi-vidual cities (1923-1925 base). Addition toPhiladelphia employment survey of data forman-hours worked. Collection of data relativeto employment and wages in New Jersey trans-ferred to department of labor of New Jersey.

Cleveland.Periodic analyses of corpora-tion earnings. Construction of district indexof car loadings. Analysis of departmental datafor department stores.

Richmond.Analysis of member bank earn-ings and expenses. Collection of figures on ac-counts receivable from certain reporting storesinitiated in October, 1926.

Atlanta.Revision of varous index numbersunder way (to 1923-1925 base).

Chicago.Elaboration of methods for han-dling data relating to failed banks. Study ofselected individual banks with reference totrend of different classes of deposits in relationto reserves. Study of earnings and expenses ofmember and nonmember banks. Revision ofall index numbers to 1923-1925 base.

St. Louis.Construction of several addi-tional index numbers. Survey of flood con-ditions in the district.

Minneapolis.Development, largely fromexamination reports, of series of financial ratios,with special reference to credit policy. Studyof changes (1923-1926) in rates paid by na-tional banks on time and savings deposits.Trend of deposits, loans, and investments overa period of years, for all banks in the district.Survey of distribution of bank deposits amongprincipal regions of district. Revised methodsof estimating cash value of grains and potatoesmarketed monthly (1923-1927). Surveys ofselected agricultural and business developments.

Kansas City.Extension of reporting servicerelative to wholesale and retail trade.

Dallas.Elaboration of studies of earningsand expenses of selected groups of memberbanks.

San Francisco.Construction or revision(1923-1925 base) of trade indexeswholesaletrade, by lines; department-store sales, bycities; bank debits, by cities. Extension ofreporting serviceswholesale trade, retailtrade, employment. Tabulation of data show-ing relative importance of different industriesin each State or district. Continued study ofearnings and expenses of member banks.

FOREIGN BALANCES OF MEMBER BANKSFor several years the condition statements

submitted by member banks on call dateshave included information relative to the bal-ances due from banks in foreign countries, andon the occasion of the latest call, that forMarch 23, 1927, all member banks were re-quested to report also balances due to foreignbanks. The figures have now become availableand they show that the total deposits held byforeign banks with members of the Federalreserve system amounted on March 23, 1927,to about $375,000,000, of which more than 85per cent was with member banks in NewYork City. There were five other cities inwhich member banks reported as much as$4,000,000, either due to foreign banks or duefrom foreign banksBoston, Chicago, SanFrancisco, Pittsburgh, and St. Louis. Thefigures for the member banks in the six cities



mentioned, and for all other member banks,are given in the following table:AMOUNTS DUE FROM AND DUE TO FOREIGN BANKS,

MARCH 23, 1927[In thousands of dollars]

Member banks i n -

New York CityBoston _. _. . __ .ChicagoSan FranciscoPittsburgh. _ _Pt LouisAll other

Total _

Due fromforeignb a n k s i

181, 74222, 52924, 84510, 7036,2144,585

23, Oil

273, 633

Due toforeignbanks1

323,31415, 3739, 7079,188

564259

15,168

373, 590

1 Including foreign branches of American banks.

CONDITION OF ALL BANKS IN THE UNITEDSTATES

At the end of the first quarter of 1927 allbanks in the United States, including bothmembers of the Federal reserve system andnonmembers, had loans and investments aggre-gating about $52,650,000,000, about $400,-000,000 more than at the end of 1926, asshown by the table, which gives separate fig-ures for member and nonmember banks. The

increase reflected a growth of about $690,000,-000 in the banks' investments, for the mostpart in the holdings of member banks, and adecline of nearly $300,000,000 in loans; theloans of member banks showed a decline of$375,000,000, while the loans of nonmemberbanks increased somewhat.LOANS AND INVESTMENTS OF ALL BANKS IN THE

UNITED STATES[In millions of dollars]

Mar. 23, 1927:LoansInvestments _

Total _ _

Change from Dec. 31,1926:LoansInvestments

Total

Allbanks

36,29716,355

52, 652

-296+693+397

Memberbanks

22, 532; 9,622

32,154

-374+632+258

Non-memberbanks

13. 7656,733

20,498

+78+61

+139

Figures showing the principal resources andliabilities of all banks on March 23, 1927, aregiven in detail elsewhere in this issue of theBULLETIN, both by Federal districts and byStates, with comparative figures for precedingcall dates.

CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEMDuring the first quarter of the year there was

a decline of 116 in the number of memberbanks in active operation in the Federal reservesystem, as indicated by the number of bankssubmitting the required reports of conditionon December 31, 1926, and on March 23, 1927.The decline, which represented decreases of 84in the number of national banks and of 32 inthe number of member State banks, is ac-counted for largely by losses in membershipcaused by mergers among member banks and bysuspensions, as is shown in the following table:CHANGES IN THE NUMBER OF MEMBER BANKS IN THE

FEDERAL RESERVE SYSTEM, JANUARY 1 TO MARCH23, 1927

Active member banks, Jan. 1,1927Banks joining the system .Banks withdrawing from the system

Net increase from banks joining and withdrawingBanks lost to membership through mergers between member

banks and suspensionsNet decrease for the year_ - _.

Active member banks, Mar. 23,1927

Numberof banks

9,26033

129

4

120

116

9, 144

i Includes 19 withdrawals which were incidental to the absorption ofmember banks by existing nonmember banks.

During the period 33 banks joined thesystem and 29 withdrew from membership;there was thus a net voluntary accession of4 banks. Of the banks that joined the system,16 were new l^y organized national banks, 12were former nonmember banks that joined thesystem, 8 converting into national banks and4 being admitted to membership in the systemwith the status of State institutions. Therewere in addition 5 banks which, having pre-viously suspended, resumed operations. The29 banks that relinquished membership in thesystem included 8 State member banks thatwithdrew after advance notice to the FederalReserve Board, 2 that were succeeded bynonmember banks organized for that purpose,and 19 member banks that were absorbed byexisting nonmember banks.

As against the net voluntary accession of4 banks to membership in the system, therewas a loss of 120 banks resulting from causesnot related primarily to the banks' choice inthe matter of membership in the system.There w e^re 55 suspensions during the periodand 65 mergers between member banks.Changes in membership for the first quarterof the year are summarized in the followingtable by class of member bank:



CHANGES IN THE NUMBER OF MEMBER BANKS IN THEFEDERAL RESERVE SYSTEM, BY CLASS OF MEMBER,JANUARY 1 TO MARCH 23, 1927

Class of change

Active member banks, January 1,1927Additions to membership:

Organization of national bank _ _._Conversion of nonmember bank to

national. ___Admission of State bankResumption following suspension.__Conversion within the system

Total additionsLosses to membership:

Merger between member banksIntraclassInterclass

Suspension and insolvencyAbsorption of member bank by

nonmember bankConversion of member bank to

nonmember bankWithdrawal of State bank _Conversion within the system

Total lossesNet change :_ _Active member banks, March 23,1927_-_

Number of member banks

Total

9,260

16

845

33

5213

55

19

2- 8

149-1169,144

National

7,906

16

8

4i 1

29

2 463 740

18

i 2

113- 8 4

7,822

State

1, 354

41

12

7

66

15

1

28i 1

39- 3 2

1,322

1 Succession between members of one class and members of the other

without effect on the number of banks in the system.2 Includes 26 banks that were absorbed by nonmember banks which

were in turn immediately absorbed by a national bank.3 Includes two national banks which, together with a State member

bank, were succeeded by a single State member bank organized for thepurpose.

ANNUAL REPORT OF THE FEDERAL RESERVEBOARD

The complete edition of the annual reportof the Federal Reserve Board, covering opera-

tions for the year 1926, was issued duringJune. It contains, in addition to the text ofthe report issued in March, tables and chartsrelating to Federal reserve banks, member andnonmember banks, foreign central banks,money rates at home and abroad, gold hold-ings of principal countries, and general businessconditions in the United States. It also givesin full the recommendations of the FederalAdvisory Council during 1926.

The report contains considerably more infor-mation on foreign countries than did earlierreports. It gives data on the condition ofcentral banks in principal foreign countries,money rates prevailing in foreign financialcenters, and gold holdings of foreign coun-tries. In the data on domestic banks theprincipal innovation is the publication bothfor Federal reserve banks and member banksof figures representing daily averages ratherthan conditions on a given date. There isalso a table showing the classification ofloans and investments of all member bankson June 30, 1925 and 1926. Part II of thereport, which gives figures for individualFederal reserve districts, has been considerablyexpanded, chiefly by giving more informationfor individual cities in the districts.

Some of the principal series of figures inthe annual report are carried forward for thefirst six months of 1927 in the mid-yearstatistical summary appearing elsewhere inthis issue.


468 FEDEKAL RESERVE BULLETIN JULY, 1927

NATIONAL SUMMARY OF BUSINESS CONDITIONSIndustrial production increased in May and

continued at a higher level than a year ago,while distribution of commodities was insmaller volume than last year. The generallevel of wholesale commodity prices haschanged but little in the past two months.

Production.Output of manufactures in-creased considerably in May, while production

100*

PRODUCTION OFMANUFACTURES AND MINERALS

50 50

1923 1924- 1925 1926 1927Index of production of manufactures and minerals. (1923-1925 average =

100.) Latest figures, May

of minerals was maintained at the April level.Increased activity was shown in cotton andwoolen mills, in meat packing, and in theproduction of lumber; the output of iron andsteel, nonferrous metals, automobiles, andbuilding materials, after allowance for usualseasonal variations, was maintained at prac-tically the same level as in April. Since thelatter part of May, however, production ofsteel and automobiles has declined. The totalvalue of building contracts awarded continuedslightly larger in May and in the first two weeksof June than in the corresponding period oflast year. Production of winter wheat wasestimated by the Department of Agricultureon the basis of June 1 condition at 537,000,000bushels, or 90,000,000 bushels less than lastyear. The indicated rye production wasplaced at 48,600,000 bushels, which is 20 percent larger than the crop in 1926.

Trade.Sales of retail stores in May showedmore than the usual seasonal decline from the

high April level. Compared with May of lastyear, department-store sales were about 4 percent smaller, while those of mail-order houseswere slightly larger. Value of wholesale tradeof all leading lines, except groceries and meats,was smaller in May than in April and in thecorresponding month of 1926. Inventories ofmerchandise carried by department storesshowed slightly more than the usual seasonaldecline in May and at the end of the monthwere somewhat smaller than a year ago.Stocks of wholesale firms were also smallerthan last year. Freight-car loadings increasedin May by less than the usual seasonal amount,and for the first time in over a year dailyaverage loadings were in smaller volume thanin the corresponding month of the precedingyear. Loadings of all classes of commodities,except livestock, ore, and miscellaneous prod-ucts, were smaller than last year.

Prices.The general level of wholesale com-modity prices has remained practically un-

PER CENT200

150

50

WHOLESALE PRICES

PERCENT[200

100

50

1923 1924 1925 1926 1927Index of United States Bureau of Labor Statistics. (1913=100, base

adopted by bureau.) Latest figures, May

changed since the middle of April. Prices ofgrains, cotton, and hides and skins have ad-vanced, but these advances have been offsetin the general index by declines in the pricesof livestock, wool, silk, metals, and rubber.

Bank credit.Demand for bank credit tofinance trade and industry remained at aconstant level between the middle of May


JULY, 1927 FEDERAL RESERVE BULLETIN" 469

and the middle of June, and the growth in thevolume of credit extended by member banksin leading cities during the period was inholdings of securities and in loans on stocks and

BILLIONS OF DOLLARS

10

8

6

4

2

0

- ^

|All

( Larg

Investments

y^LoansonSecuritie

Other Loansely Commerci'al )^S~*

S

MEMBER BANK CREDIT

I I

BILLIONS OF DOLLARS

8

6

01923 1924- 1925 1926 1927

Monthly averages of weekly figures for banks in 101 leading cities.Latest averages are for first four weekly report dates in June

bonds. Loans to brokers and dealers in securi-ties by reporting member banks in New YorkCity increased rapidly and on June 15 were inlarger volume than at any previous time cov-ered by the reports.

At the Federal reserve banks there waslittle net change in the volume of bills andsecurities between May 25 and June 22, thefluctuations during the period reflecting largelythe effects of Treasury operations. Discountsfor member banks toward the end of Junewere in about the same volume as a monthearlier, while there was a decline in the reservebanks' holdings of acceptances and an increasein their portfolio of United States securities.

Conditions in the money market were fairlystable throughout the period, with slight ad-vances in the rates on commercial paper andmore recently on bankers7 acceptances.

FEDERAL RESERVE BOARD INDEXES OF PRODUCTION, EMPLOYMENT, AND TRADE

Year andmonth

Indus-trial

produc-tion i

Produc-tion ofmanu-

fac-tures *

Produc-tion ofminer-

als i

Building contractsawarded *

Unad-justed Ad-justed

Monthly average 1923-1925=100

Factoryemploy-

ment

Factorypayrolls

Rail-roadcar

load-Whole-

saletrade

Department-storesales 1


Department-storestocks l


Monthly average 1919=100

Bankdebitsoutsideof NewYorkCity i

1926JanuaryFebruary...March. . . . .April.May.. . .JuneJuly... ..AugustSeptember.October--..November..December..

1927JanuaryFebruary...MarchAprilMay

106107108108107107107111113111108105

106109112109111

108109108108107107107112113111106

103

105107110109112

9398108107103104105109111116118120

117120122106108

11199146139134133126146137126119131

9496151147135

146136128120125125124129130126130136

123131131128126

969797 I96 l9695949496969594

107112113110109109104108108112109108

102109110108108

118127126132126127130126128127132132

122132131134125

787685808284828897948678

7573837879

11410413013313713099105131158156234

114107129143131

130135130130132130133134144139138146

130139129140127

125131142143138131125130142153156128

124131142143138

141140141139138138133130132137138137

139139140139138

126128131131124127136126126126123126

125133134137133

1 The indexes of production, car loadings, and bank debits are adjusted to allow for seasonal variation: the indexes of building contracts and

department-store sales and stocks are shown both with and without seasonal adjustments.


470 FEDEKAL KESEKVE BULLETIN JULY, 1927

FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICSRESERVE BANK CREDIT

BILLIONS OF DOLLARS2

BILLIONS OF DOLLARS2

1923 1924- 1925 1926 1927Monthly averages of daily figures for 12 Federal reserve banks. Latest

figures are averages for June

RESERVE BANK CREDIT IN USE[Monthly averages of daily figures. In thousands of dollars]

Month

1926January.._February..MarchAprilMay _JuneJuly.AugustSeptember,October...November.December.

1927January...February .MarchApril.MayJune

Reservebank

credit inuse 1

1,231,3371,176,3281,176, 4391,158,8911,155,1911,139, 8081,166, 5641,158,2641, 225, 2361, 269,3561,270,0571,380, 5711,146, 5231,007, 6241,029,3191,038,857999,504

1,033,123

Bills dis-counted

formemberbanks

526,042525,049558, 795539, 594514,559476,044548,966555,799641, 797665, 566618,367671, 722486,875393, 636427,716447,286472, 984428,563

Billsbought

327,179305,631269, 634235,956230, 555244, 038231,132245,094263, 992294, 296346, 859384,826345, 448305,013254, 618248,429233,224205,273

UnitedStatessecuri-

335,367336,198369,779398, 249408, 776379, 745353,903315, 747306,413302,309321,446310, 637306,707344,921341, 081291,495397,754

1 Total holdings of bills and securities by all Federal reserve banks

including "other securities" and foreign loans on gold.

DISCOUNTS AND DEPOSITS OF FEDERAL RESERVE BANKS

[Monthly averages of daily figures. In thousands of dollars]

Month

Discounts:1926January

February.MarchApril

yJuneJulyAugustSeptember..OctoberNovember..December..

1927JanuaryFebruary...MarchApril.May__June

Total

526,042525,049558,795539,594514,559476,044548,966555,799641,797665,566618,367671,722486,875393,636427,716447,286472,984428,563

Deposits:1926January 2,289,298

February 2,274,728March 2,276,724April 2,251,846May 2,253,294June 2,241,415July 2,262,420August- 2,253,350September 2,273,205October . . 2,280,180November.. 2,279,135December 2,289,632

1927January 2,300,204February 2,266,460March . . . . . 2,284,809April 2,301,120May ! 2,326,816June | 2,355,428

I

Federal Reserve Bank

Boston

31,89538,77535,15128,45027,06824,81634,52936,65345,49842,18038,03155,72634,476

35,53823,20137,12933,843

148,192148,884148,287148,224146, 111145,362148,013145, 625147,447153, 231155,409150,252148,810149,134146,177148,394148,045149,846

NewYork

163,247180,152140,813129,202136,767117,785165,983163,270182,447164,579134,908154,570120,78790,232

114,391121,628137,76591,932

872,556855,864862,833851,678856,697865,577857,668847,061862,912853,359856,416879, 596885, 641856,053878, 285882,386908,188941,867

Phila-delphia

48,17256,24859,90153,29549,72249, 24348,13545,85146,22449,91843,82660,78544,18436,15841, 81943,74445.84145,227

137,443134,093134,749137,832137,307135,361137,621136,502137,152139,637139,260139,419141,195139,360138, 894140, 451138,961137,874

Cleve-land

59,20842,66956,61156,20752,07143,97737,22133,66644,96670,38675,60290,05162,10739,42431,88853,89043,62441,801

177,700181,330181,208180,681181, 553181,333185,981188,314

Rich-mond

185,945184,749181, 215182, 290183,035188,427188,122188, 376190, 247

38,03538,28743, 55845,06646,63747,36641,77544,91846,35945,66435,51629,62022,49823,40922,22122,50625,45022,374

70,95672,22770,07369,31469,31466,55671,41870, 05470, 06172, 24072,62671, 01073,33572, 27670,48471,21172, 58671,679

At-lanta

26,95326.61740,00644,35435,18338,38442,01147,58555,34555,68150,45547,55334,43526,73831,38934,14034,62532.618

83,10485,23784,47680,74476.13372,47773,45371,87372, 71874, 64072,93871, 80272, 72372, 53171.13472.76671,12668,810

Chicago

80,11266,94875,50775,26656,31152,54760,85454,59167,73689,224105,702119,16590,84778,29770,69156,28152,67963,917

327,433328,522330,484325,392332, 762329,191335,306

St.Louis

19,68020,77326,12628,23626,66228, 53630,64235,19643,46242,16337,54837,84419,07214,53114,37416,20224,02426,251

Minne-apolis

338,071336,643332,040329,801331, 215329,680328,167332,363338, 974338,545

4,676

85,65884,56183,538 !83,39481,270 !82,91782,09280,93783,745

I 82,77182, 82383,32583,754

i 82,780i 83,827! 83,193I 82,434

6,9205,2547,55613,07611,21211,1458,6135,1014,1464,3244,6096,0586,7376,514

55,56054,27457, 58054,66352,93451,69851,53849,78750,09951, 57453,07052,55052, 27850,75951,48450,37149,15649,678

KansasCity

15,51117,06317,49919,04420,14918, 47216,16412,69313,54212,45516, 86613,66310,2569,4378,584

11,90217, 33316, 524

91,91291, 85989, 57488,27888,77588,15592,651

i 94,619I 93,706

92,848! 91,393j 91,127

90,88091,425.90,78990,83289,37888,342

Dallas

7,4635,8416,6417,4009,83211,92116.13820.13925,00019,45117,22310,3205,6063,2153,1974,4034,6706,172

64,38964,24463,31561, 58059,39957,08757,47857, 59558,91360,98461,14862,90262,15663, 76363,17062, 58761, 64559,765

SanFran-cisco

31,09025,30750,28346,68847,23737,74347,95848,16160,00662.72054,07747.32438,46139,20249,01553,33143,10741,390

173,249172,536169,584169,922168,915167,348168,376169,442173,141175, 334177,315177,IU176,356174, 690175,018177,810177.188176, 341


J U L Y , 1927 FEDERAL EESEEVE BULLETIN 471

GOLD IMPORTS AND EXPORTS AND MONEY IN CIRCULATIONMILLIONS OF DOLLARS MILLIONS OF DOLLARS

GOLD IMPORTS AND EXPORTS

Bars above base line represent importsSars beJow base line represent ExportsBlack portions represent excess Imports or Exports

40

60

801921 1922 1923 1924- 1925 1926 1927

GOLD STOCKi

[First of month figures. In millions of dollars]Month

JanuaryFebruary. _MarchAprilMay . ,June.-JulyAugustSeptember-OctoberNovember.December. _

1922

3,6573,6813,7213,7513,7673,7743,7863,8253,8593,8743,9023,909

1923

3,9333,9383,9613,9693,9824,0234,0494,0794,, 1094,1354,1684,210

1924

4,2474,2894,3384,3684,4174,4604,4914,5174,5314,5484,5544,570

1925

4,5474,4824,4244,4054,3944,3964,3904,3914,4004,3994,4424,426

1926

4,4094,4154,4454,4954,4974,4944,5004,5194,5114,4994.4914,495

1927

4,5024,5374,5864,5994,6094,6084,588

1 Gold coin and bullion held by Uni ted States Treasury and Federal

reserve banks (including gold held abroad) and gold coin in circulation.

GOLD I M P O R T S A N D E X P O R T S , BY C O U N T R I E S

[In thousands of dollars]

Coun t ry of originor dest inat ion

E n g l a n d . . .FranceGermany. .CanadaCentral AmericaMexicoChileColombiaEcuadorPeruVenezuelaAustraliaBritish India . .British MalayaChina a n d H o n g

KongDutch East Indies..JapanPhilippine Islands.-All other countries..

Total .

1927

M a y

imports

26 054

52813748436

106

24121

2 433

1,027241

2,000121781

34,212

Exports

---

38510

150

66557

20

1,510

January-May

Imports

39 37221,000

45,812566

2, 6543,681

570344

1,176143

7,307

1,673717

20,000688

1,058

146, 761

Exports

6

~13,~857~3,262

32,833

1,001

100

781,527

2, 555333

1,475

27, 031

1926

Calendar year

Imports

1,212351

182, 543

1,51623,91321,1801,6631,3072,644

64751 119

5

6,5401,707

14,0001,9901,166

213, 504

Exports

1847, 55042,3923 8556,202

2,0196

1,700

5783,342

4,4952,221

60

1,270

115, 708



5000

4500

4000

/

MONE\

v

" IN CIRCULAT10N

i

w

i

t

5000

4500

1923 1924 1925 1926 1927J4000

Based on averages. Latest figure, June, $4,765,000,000, average offigures for June 1 and July 1

MONEY IN CIRCULATION

[First of month figures. In millions of dollars]

Month

January...February..MarchAprilMayJuneJulyAugustSeptember.OctoberNovember.December.

1922

4,6054,3534,4024,4134,3854,3704,3744,3374,3944,5214,5704,617

1923

4,7334,5094,6114,6564,6684,7064,7294.6964,7784,8504,8354,923

1924

4,9514,6824,8084,8134,7604,8154.7554,6654,7744,8064,8804,994

1925

4,9934,7524,8044,7764,7254,7744,7364,7204,7844,8274.9014,972

1926

5,0084,7404,8144,8064,8544,8714,8354,8584,8644,9064. 9334,949

1927

5,0014,7134,7794,7584,7844,7864.745

KINDS OF MONEY IN CIRCULATION

[In millions of dollars]

Kind of money

Gold coin and bullion...__Gold certificates._Standard silver dollarsSilver certificates.Treasury notes of 1890.. .Subsidiary silverUnited States notesFederal reserve notes, _Federal reserve bank notes. .National bank notes

Total

First of month

May

3891,019

49377

1273293

1,7245

654

4,784

June

3871,004

49379

1275293

1,7345

659

4,786

figures

July

3861,007

49376

1276292

1,7035

650

4,745

Averages l

M a y

3881,012

49378

1274293

1,7295

656

4,785

June

3871,006

49377

1275292

1,7185

655

4,765

i Averages of figures for first of given month and first of followingmonth.



MONEY RATES IN NEW YORK CITY

t -

1922 1923 1925 1926 1927

FEDERAL RESERVE BANK RATESDISCOUNT RATES

[Rates on all classes and maturities of eligible paper]

Federal reserve bank

BostonNew YorkPhiladelphia.ClevelandRichmondAtlantaChicagoSt. LouisMinneapolis..Kansas City._Dallas .__San Francisco

Rate ineffect onJuly 1 Date established

| PreviousI rate

Nov. 10, 1925.Aug. 13, 1926.Nov. 20, 1925.Nov. 17, 1925.June 14,1924.June 18,1924.June 14, 1924.June 19,1924.Oct. 15,1924..July 1, 1924...July 16, 1924..Nov. 23, 1925.

BUYING BATES ON ACCEPTANCES

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

Maturity

1-15 days. . .16-30 days-.31-45 days. .46-60 days _.61-90 days. .91-120 days.121-180 days

Rate ineffect onJuly 1

3}3^3^33/.3M

Date established Previousrate

Sept. 1, 1926..Aug. 23,1926

do _..dododo

Aug. 16,1926

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

OPEN-MARKET RATESRATES IN NEW YORK CITY

Month or week

1926AprilMayJuneJulyAugustSeptember.._OctoberNovember.. .December

1927JanuaryFebruaryMarchAprilMayJuneWeek ending-

June 4June 11June 18.June 25.

Primecom-

mercialpaper,

4-6months

Prevailing rateon

44

4y

4 -4;

4 -4H4 -1%4 -4H

Primebank-ers'

accept-ances,90 days

Average rate

Callloans *

4.063.814.154.274.525.024.754.565.16

4.324.034.134.184.264.33

4.504.354.194.00

Timeloans s

4.294.054.204.394.764.884.994.704.70

4.524.424.394.454.404.49

4.444.464.484.48

Average yieldon

U.S.Treas-ury

notesand

certifi-cates,3-6

months

percentLib-erty

bonds

3.083.17

8 2.903.113.27

8 3.473.583.35

3.233.29

8 3.213.393.33

/ 3.04\ 3.09

3.123.043.083.113.08

3.943.933.903.933.953.963.953.913.83

3.803.803.803.873.863.84

3.823.843.863.84

1 Stock exchange call loans; renewal rate.1 Stock exchange time loans; weekly average of daily average rates on

principal maturities.2 Change of issues on which yield is computed.



PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIESThe rates shown are those at which the bulk of the loans of each class were made by representative banks

during the week ending with the 15th of the month. Rates reported by about 200 banks with loans exceeding$7,500,000,000.FEDERAL RESERVE BANK CITIES

Month Boston NewYorkPhila-

delphiaCleve-land

Rich-mond Atlanta Chicago St. Louis

Minne-apolis

KansasCity Dallas

SanFran=cisco

1926JuneJulyAugustSeptember.OctoberNovember.December.

1927January...February..MarchAprilMayJune

1926December.1927January. _

February.March... . .AprilMay. . .June

1926December.1927January. __

February..March. . . . .Apr i l . . . . . .May _June

5-54?44%

4*4-5

434-4M

1926December1927January..

February.MarchAprilMayJune

Prime commercial loans

4K"434 5>^-66666

5 -06

5 -65 -6

4^-4

4^-5

5 -65

5 -6534-6534-65J4-6534-65^4-65 -65 -65 -6

5 -65 -65 -65 -65 -65 -65 -65 -65 -64H-65 -65 -65 -6

434-5434-5434-543/4-5i5 -5A434-53*64J4-53/5 -6

65

6 -8

5M-66

5 -53*666

6 -W26

55 -65 -65 -6

653^-65 -53^5 -65 -6

56 -8

6 -76

55 -655 -6

653^-65 -55 -65 -6

56 -86 -6

66


474 FEDEEAL EESEKVE BULLETIN JULY, 1927

MEMBER BANK CREDITMEMBER BANK RESERVE BALANCES AND BORROWINGS AT FEDERAL RESERVE BANKS

[Monthly averages of weekly figures. In thousands of dollars]

Month

1926AprilMayJuneJuly..August.SeptemberOctober..NovemberDecember

1927JanuaryFebruaryMarchAprilMayJune..

Reserve balances

Reporting member banks

New YorkCity

706,419691,061713,944699, 557679,145711,833662,329672, 948725,298717,310682,026709,853687, 972720,255775, 900

Otherleading

cities

935,860958,684952,529951,417964,171965,294969,406963,186960,263960,239962,691961,184971,108976, 346973,318

Total

1, 642,2791,649,7451,666,4731,650,9741, 643,3161, 677,1271, 631, 7351, 636,1341,685,5611, 677, 5491,644,7171,671,0371, 659,0801, 696, 6011, 749, 218

Othermemberbanks

569,929564.293566> 473572,903571, 988578,811583, 111580,514579, 291587, 647584,612593,492594,900593,528592, 650

Total

2,212,2082,214,0382,232,9462,223,8772, 215,3042,255, 9382,214,8462,216, 6482,264,8522,265,1962,229,3292,264,5292,253,9802, 290,1292, 341, 868

Borrowings at Federal reserve banks

Reporting member banks

New YorkCity

90,32982,00354,944

117,229111,296128,17384,40671,16299, 61175,89459,90773,11878,45990,16751, 485 '

Otherleading

cities

238,281208,484196,811197, 725224,147299,449355, 892350, 687347,515223,259172,986195,001191,883213,476219,307

Total

328,610290,487251, 755314,954335,443427, 622440,298421,849447,126299,153232,893268,119270,342303,643270, 792

Othermemberbanks

201,184206,363220,373221,125215,007209,261196,211191,127200, 647177,141158, 791150, 734151,086155,476163, 753

Total

529, 794496,850472,128536,079550,450636,883636, 509612, 976647, 773476,294391, 684418,853421,428459,119434, 545

LOANS, INVESTMENTS, AND DEPOSITS OF REPORTING MEMBER BANKS[Monthly averages of weekly figures. In thousands of dollars]

Month

In New York City:1926May

June. . . .July.AugustSeptember .October.November....December

1927JanuaryFebruaryMarchApril.. . . . .May - .June

In other leading cities:1926May

JuneJulyAugustSeptemberOctober.......November....December.....

1927JanuaryFebruary.....MarchApril .MayJune _.

Total:1926May

JuneJuly..August..September....October . . .NovemberDecember

1927January __,FebruaryMarchAprilM a y . . . ,June

Loans and investments

Total

6,209,1476,271,2986,224,4426,199,9176,237, 6076,179,2296,174,250

6,341,1146,189,0526,349,7016,421,1656, 534,8826, 692, 243

13,391, 90713, 420,93513, 437,82613,503,32013, 654,39513, 781,83713, 699, 69013, 644,28913.549,74113,559, 44413,816,86713.813,14113, 911, 81213, 990,132

19, 601,05419, 692,23319, 662,26819,703,23719,892,00219,961,06619,873,94019,953,17519,890,85519,748, 49620,166,56820.234,30620,446,69420, 682,375

Loans

Total

4,395,0584,436,2704, 409,3384,408,1774,484,0

frb_071927

Documents

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