FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON NOVEMBER, 1918 WASHINGTON GOVERNMENT FEINTING OFFICE 1918 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD. EX OFPICIO MEMBERS. W. P. G. HARDING, Governor. WILLIAM G. MCADOO, ALBERT STRAUSS, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, CHARLES S. HAMLIN. Comptroller of the Currency. J. A. BRODERICK, Secretary. M. C. ELLIOTT, Counsel. L. C. ADELSON, ^Assistant Secretaries. H. PARKER WILLIS, W. T. CHAPMAN, Director, Division of Analysis and Research W. M. IMLAY, Fiscal Agent. F. I. KENT, M. JACOBSON, Statistician. Director, Division of Foreign Exchange. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis SUBSCRIPTION PRICE OF^BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their officers and directors may have it sent to not less than ten names at a subscription price of $1 per annum. No complete sets of the Bulletin for 1915 or 1916 are available. Bound copies of the Bulletin for 1917 may be had at $5 per copy. HI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS. Review of the month 1045 Branch bank organized at Little Rock 1056 War debts of principal belligerent countries 1057 Statement by War Trade Board relative to curtailment of less essential productive activities 1078 Examinations of State bank members 1079 Foreign banking operations of the First National Bank of Boston 1079 Quarterly report of the War Finance Corporation 1081 Study prepared by R. B. Spear, Assistant Federal Reserve Agent at Boston, on State bank membership in New England 1081 Philippine National Bank branches and agencies 1084 Changes in reserve requirements in reserve and central reserve cities of New York 1086 Press statement in connection with applications of national banks to exercise trust powers under recent amend- ment to act 1086 Study on "Economic reconstruction—Analysis of main tendencies in the principal belligerent countries of Europe," by Department of Commerce 1086 Suggestions by Food Administrator as to guaranteed price of wheat 1088 New rules for obtaining export licenses, issued by War Trade Board 1089 New priorities ruling directed to agricultural-implement industry by Priorities Division of War Trade Board 1090 Swedish prices and capital problems 1091 List of directors of Federal Reserve Banks whose terms expire in December, 1918 1092 Payment by Federal Reserve Banks of expenses incident to transfers of currency to and from Federal Reserve Banks 1093 Condition of national banks as of August 31, 1918 1093 The warehouse act and situation as to cotton warehouse loans, as stated by R. L. Nixon, of the Department of Agriculture 1094 State banks and trust companies admitted to the system during the month 1098 Commercial failures reported 1099 Charters issued to national banks 1099 Banks granted authority to accept up to 100 per cent of capital and surplus 1100 Fiduciary powers granted to national banks 1100 Index of wholesale prices 1100 Reports of total bank transactions 1103 Discount and interest rates prevailing in various cities 1106 Holdings by member banks of United States war securities 1109 Acceptance liabilities of national banks and State institutions 1114 Lost and recovered Liberty bonds 1115 Informal rulings of the Board 1118 Informal rulings of the Division of Foreign Exchange 1121 Law department 1123 Business conditions throughout the Federal Reserve districts 1125 Discount operations of the Federal Reserve Banks 1142 'Subscriptions to the seven issues of certificates of indebtedness preceding the fourth Liberty loan 1147 Resources and liabilities of Federal Reserve Banks 1148 Federal Reserve note account of Federal Reserve Banks and agents 1151 Member bank condition statement 1154 Imports and exports of gold and silver 1159 Estimated stock of money in the United States 1160 Discount rates in effect 1161 'Operation of the Federal Reserve clearing system 1161 Foreign exchange rates 1162 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 4 NOVEMBER 1, 1918. No. 11 REVIEW OF THE MONTH. $4,600,000,000. These certificates constitute a charge upon the proceeds of the loan and The fourth Liberty loan campaign, which consequently reduce it to a net available closed on October 19, has re- Fourth Liberty -, . -, . ., ~ « amount of a little more than $2,000,000,000. K suite1x d in placing tne $6,000,fi nrk - 0aiu The general program of finance projected by 000,000 of bonds offered by the Secretary of the Treasury at the opening the Secretary of the Treasury, with an over- of the current fiscal year was predicated upon subscription of $866,416,300, A statement an estimated expenditure for the fiscal year of issued by the Treasury Department immedi- $24,000,000,000. During the month of Octo- ately upon completing the compilation of the ber a deficiency appropriation bill was passed figures, shows the following results by Federal by Congress and became law. This bill Reserve districts: adds, in round numbers, the sum of $6,300,000,- i Per cent 000 to the amounts already estimated as neces- of sub- District. Quota. Subscription. scription sary to the conduct of the Government during to quota. the fiscal year 1918-19. It is thus seen that, Boston $500,000,000 $632,221,850 126.14 assuming the new war revenue bill will yield Richmond 280.000,000 345,000,000 123.22 Philadelphia.. 500,000,000 598,500,000 119.68 $9,000,000,000, and assuming further that the Cleveland 600.000,000 696,536,000 116.09 Minneapolis... 210.000.000 239,616;350 114.00 original program of expenditure will be carried St. Louis 200.000,000 295,117,900 113.50 Atlanta 192,000,000 215,053,250 112.32 out, there would remain to be provided, before Dallas 126,000,000 140,744,600 111.69 New York 1,800,000.000 2,000,000,000 111.11 the close of the fiscal year, June 30, 1919, Chicago 870,000,000 959,529,250 110.29 Kansas City... 200.000,000 284,058,350 109.59 approximately $15,000,000,000. San Francisco. 402,000,000 426,000,000 105.97 Treasury 32,538,750 The arrival of peace at a date earlier Total | G. 000,000,000 6,866,416.. 300 I than had a short time ago seemed possible, may result in somewhat curtailing these heavy According to the statement issued by the vSec- requirements, but such curtailment or reduc- retary of the Treasury on November 1, "the tion can not, in the nature of things, take estimated number of subscribers is in excess of place in large degree at any very early moment. 21,000,000. In the first loan the number of The Nation now has more than 2,000,000 men subscribers was 4,500,000, in the second loan on the fighting front in France, and it must, 9,500,000, and in the third loan 18,300,000. prepare to provide for their maintenance and Final figures both as to the total amount of other essential military and naval expenditures subscriptions and the number of subscribers for a good while to come, no matter whether are still lacking, but results will not be less than there be an early peace or continuation of the now reported. The distribution of the loan war. Relaxation of our financial endeavors among investors can not be stated at the to-day would therefore mean only impairment moment, but details will be furnished as soon of our readiness to meet the inevitable require- 77 as final reports are received. ments of the Treasury in the event of the con- As already stated in the October issue of the tinuation of the war or failure to make adequate FEDERAL RESERVE BULLETIN, preparation for the adjustment of the nation's dose ofloan. there had been issued and sold, outstanding obligations at the end of the war. in anticipation of the floating For some time to come banking and public of the fourth Liberty loan, an aggregate of cer- finance must be influenced to a large extent by tificates of indebtedness amounting to over the necessary provision for the very large 1045 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1048 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1918. Government expenditures, and no great modi- comparison gives some indication of the situation fication of the policies already mapped out as with respect to the holdings of war securities and fundamental to war finance can at once be war paper existing in the Federal Reserve system experienced. about the dates of each of the Liberty loans: The question of providing for the national [000 omitted.] requirements during the re- Reporting member banks.4 quirements? re" mainder of the fiscal year is Federal Reserve United thus of a serious and important Banks. States war War paper. nature. What new light will be thrown upon obligations. the borrowing power of the country by the June 22,1917. i $98,184 Nov. 23,1917. 1365,392 | No data. No data. results of the fourth Liberty loan is as yet un- May 10,1918.