Federal Reserve Bulletin July 1927
Total Page:16
File Type:pdf, Size:1020Kb
FEDERAL RESERVE BULLETIN JULY, 1927 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Mid-Year Summary of Banking Developments Earnings and Expenses of Member Banks Condition of All Banks in the United States UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON 1927 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD Ex officio members: D. R. CRISSINGER, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, ADOLPH C. MILLER. Secretary of the Treasury, Chairman, CHARLES S. HAMLIN. J. W. MCINTOSH, GEORGE R. JAMES. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. J. C. NOELL, Assistant Secretary. E. A. GOLDENWEISER, Director, Division of Research E. M. MCCLELLAND, Assistant Secretary. and Statistics, W. M. IMLAY, Fiscal Agent. J. F. HERSON, CARL E. PARRY, Assistant Director, Division of Re- Chief} Division of Examination, and Chief Federal search and Statistics^ Reserve Examiner. 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 President District No. 6 (ATLANTA) „ _ P. D. HOUSTON. District No. 7 (CHICAGO) ... -_.... FRANK O. WETMORE, President. District No. 8 (ST. LOUIS)____... ... BRECKINRIDGE JONES. District No. 9 (MINNEAPOLIS) ._ . THEODORE WOLD. District NO. 10 (KANSAS CITY) P. W. GOEBEL. District No. 11 (DALLAS)......,. _. ... B. A. MCKINNEY. District No. 12 (SAN FRANCISCO)----- . -._._ HENRY S. MCKEE. II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston Frederic H. Curtiss. W. P. G. Harding.. W. W. Paddock W. Willett. G. W. McGarrah... Benj. Strong .... J. H. Case A. W. Gilbart.i New York L. F. Sailer J. W. Jones.i G. L. Harrison.. Ray M. GidneyJ E. R. Kenzeh „____. L. R. Rounds.1 Philadelphia R.L.Austin Geo. W. Norris... Wm. H. Hutt....... 0. A. Mcllhenny, W. G. McCreedy.i Cleveland __..„_. George DeCamp E. R. Fancher M, J. Fleming H. F. Strater. Frank J. Zurlinden.. Richmond „..» Wm. W. Hoxton. George J. Seay C. A. Peple Geo. H. Keesee. R. H. Broaddus John S. Walden, jr.* Atlanta _ Oscar Newton... M. B. Wellborn... Hugh Foster M. W. Bell. Creed Taylor Chicago Wm. A. Heath... J. B. McDougal j C. R. McKay W. C. Bachman.i John H. Blair. K. C. Childs.i J. H. Dillard.i D. A. Jones,* 0. J. Netterstrom.i St. Louis Wm McC. Martin. D. C. Biggs..... 0. M. Attebery J. W. White. JohnR. Mitchell... R. A. Young W. B. Geery Gray Warren. Minneapolis B. V. Moore... Frank C. Dunlop.1 Harry Yaeger» Kansas City _„_ M. L. McClure.. W. J. Bailey ..._..__. C. A. Worthington., J. W. Helm. C. O.Walsh R. R. Gilbert....... Fred Harris. Dallas. „ •_ Lynn P. Talley R. B. Coleman San Francisco.... Isaac B. Newton. J. U. Calkins ....__„__ Wm. A. Day. W. N. Ambrose. Ira Clerk. L. C. Pontious.. 1 Controller. »Assistant deputy governor. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing director Federal Reserve Bank of— Managing director New York: Minneapolis: Buffalo branch...... W. W. Schneckenburger. Helena branch R. E. Towle. Cleveland: Kansas City: Cincinnati branch... C. F. McCombs. Omaha branch...„_„___ L. H. Earhart. Pittsburgh branch J.C. Nevin. Denver branch _ J. E. Olson. Richmond: Oklahoma City branch....... C. E. Daniel. Baltimore branch A. H. Dudley. Dallas: Atlanta: El Paso branch W. 0. Ford. New Orleans branch Marcus Walker. Houston branch D P. Reordan Jacksonville branch.. Geo. R. DeSaussure. San Antonio branch ... M. Crump. Birmingham branch A. E. Walker. San Francisco: Nashville branch -...._ J. B. Fort, Jr. Los Angeles branch... R. B. Motherwell. Chicago: Portland branch R. B. West. Detroit branch W. R. Cation. Salt Lake City branch W. L. Partner. St. Louis: Seattle branch.._ C. R. Shaw. Louisville branch W. P. Kincheloe. Sookane branch.. „__ . D. L. Davis. Memphis branch. _„ W. H. Glasgow. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN THE FEDERAL RESERVE BULLETIN is the board's medium of communication with member banks of the Federal reserve system and is the only official organ or periodical publication of the board. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS Review of the month—Mid-year review of banking developments 455 Treasury finance 458 Earnings and expenses of member banks 460, 549-553 Statistical work of the Federal Reserve Board and banks 464 Foreign balances of member banks 465 Condition of all banks in the United States 466, 543-548 Changes in membership in the Federal reserve system 466 Annual report of the Federal Reserve Board 467 Mid-year summary of banking statistics 527-542 National summary of business conditions 468 Financial, industrial, and commercial statistics: Reserve bank credit— Reserve bank credit in use 470 Discounts and deposits of Federal reserve banks 470 Gold imports and exports and money in circulation . 471 Money rates in New York City 472 Federal reserve bank rates 472 Open-market rates 472 Rates charged customers by banks in principal cities 473 Member bank credit— Member bank reserve balances and borrowings at Federal reserve banks 474 Loans, investments, and deposits of reporting member banks 474 Bankers' balances in Federal reserve bank and branch cities 475 Commodity prices, security prices, and security issues 476 Industrial production 477 Factory employment and pay rolls 478 Building 479 Commodity movements 480 Wholesale trade 480 Retail trade 481 Bank suspensions and commercial failures 482 Foreign banking and business conditions: Currency and banking reform in Ecuador 483 Currency and banking reform in Estonia 485 Annual report of the National Bank of the Kingdom of Serbs, Croats, and Slovenes 487 Financial statistics for foreign countries: Condition of central banks • _• 491 Condition of commercial banks 493 Discount rates of 32 central banks - ; 493 Money rates in foreign countries 494 Gold exports and imports of principal countries 495 Foreign exchange rates 496 Price movements in principal countries— Wholesale prices 497 Retail food prices and cost of living : 499 Rulings of the Federal Reserve Board—Location of branches of State member banks 500 Law department— Revision of Regulation K—Foreign banking corporations 501 Opinion of trial court in suit against Federal Reserve Bank of Atlanta, check collection transaction 505 Suggested change in standard form of trade acceptance 510 Regulations by the Comptroller of the Currency defining "investment securities" 511 Changes in national and State bank membership , 512 Fiduciary powers granted to national banks 513 Detailed banking statistics for the United States 514 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 13 JULY, 1927 No. 7 REVIEW OF THE MONTH banks it was 3 per cent. This is the first time since 1924 that the volume of credit extended Continued growth of bank credit, particu- by New York City banks has shown a con- larly in financial centers, a sustained volume siderable growth, the level of loans and invest- of production and trade, and ments of these banks having been fairly con- Business and k nce of further declines in a se stant both in 1925 and in 1926. During these credit at mid- the general level of commodity year years, and particularly in 1926, the increase in prices are the outstanding char- the total of member bank credit in use w^as acteristics of the credit and business situation almost entirely at banks outside of New York at the close of the first half of 1927. Between City. the seasonal low point in February and the month of June loans and investments of mem- The growth of bank credit during the first ber banks in leading cities increased by more six months of 1927, as already indicated, con- sisted almost entirely of an than $900,000,000. Demand for credit to pro- Character of 7 vide for the current requirements of trade and growth increase in the banks holdings industry has been at a constant level, and the of investments and in their growth of member bank credit has been in loans loans on securities, while the volume of all other on stocks and bonds and in holdings of invest- loans, representing largely bank credit used to ment securities. Conditions in the money finance the current operations of trade and market have been fairly easy, and money rates industry, showed but little change. The fol- have moved within a narrow range. The vol- lowing table show^s the increase in the different ume of reserve bank credit in use has fluctu- classes of loans and investments of reporting ated since the end of January around the member banks between February, when the $1,000,000,000 level, current changes being seasonal liquidation had come to a close, and influenced chiefly by international gold move- the month of June: ments and by temporary conditions incident to large-scale Treasury operations. REPORTING MEMBER BANKS Member bank credit, as indicated by weekly [Monthly averages of weekly figures. In millions of dollars] reports of member banks in leading cities, was February, June, in larger volume at mid-year 1927 1927 Increase Growth of ^an a£ any previous time.