Federal Reserve Bulletin October 1927
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FEDERAL RESERVE BULLETIN OCTOBER, 1927 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Crop Moving and the Banking Situation Course of Commodity Prices Condition of All Banks in the United States UNITED STATES GOVERNMENT PRINTING OFFICB WASHINGTON 1927 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD Ex officio members: ROY A. YOUNG, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, Secretary of the Treasury^ Chairman, ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. MGINTOSHJ 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. GOLDENWEISERJ 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 FS 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, n Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis OFFICERS OF FEDERAL RESERVE BANES Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston..——. Frederic H. Curtiss. W. P. G. Harding.. W. W. Paddock.. W. Willett. New York...——.—. G. W. McGarrah.... Ben], Strong ,_— J. H. Case....... A. W. Oilbart.1 L. F. Sailer...... J. W. Jones.* G. L. Harrison... Ray M. GidneyJ E. U. Kenzel..... L. R. Rounds.* Philadelphia— ——— R. L.Austin...... Geo. W. Norris.......... Wm. H. Hutt. C. A. Mcllhenny. W. G. McCreedy.* 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, ]iJ Atlanta..._-._.„____.___. Oscar Newton. „„„ M. B. Wellborn........... Hugh Foster.... M. W, Bell. Creed Taylor........ Chicago. = ._....___„...,___ Wm. A, Heath.... J. B. McDougaL......... C. R. McKay....... W. C. Bachman.* John H. Blair.. K. O. Childs.i J. H. Dillard.1 D. A. Jones.i O. J. Netterstrom.1 St. Louis.—.—„. Wm. McC. Martin. D. C, O. M. Attebery.. 0. M. Attebery. Minneapolis. ___„__„ John R. Mitchell... B. V. Moore..ra..._. Gray Warren. W. B. Geery— . Harry Yaeger ... Frank C. Dunlop.1 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. Cole man... San Francisco .„._„.__.,-. Isaac B. Newton. J. U. Calkins. Wm. A. Day..,.. W. N. Ambrose IraClerk......... L. C. Pontious... 1 Controller. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERYE 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 Cincinnati branch........... C. F. McCombs. Omaha branch......_.....___. L. H. Earhart, Pittsburgh branch...._—.. J. C. Nevin. Denver branch...._______._._ J E.Olson. Richmond- 1 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 Wm, M. Hale. 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. Spokane 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 Page Review of the month—Crop moving and the banking situation : 689 Condition of all banks in the United States 692, 742 Treasury finance 692 Agricultural production in 1927 694 Course of commodity prices. ; _; 696 National summary of business conditions 700 Financial, industrial, and commercial statistics: Reserve bank credit— Reserve bank credit in use 702 Discounts and deposits of Federal reserve banks 702 Gold imports and exports and money in circulation 703 Money rates in New York City 704 Federal reserve bank rates 704 Open-market rates . 704 Rates charged customers by banks in principal cities ^ 705 Member bank credit— Member bank reserve balances and borrowings at Federal reserve banks 706 Loans, investments, and deposits of reporting member banks 706 Bankers' balances in Federal reserve bank and branch cities 707 Commodity prices, security prices, and security issues 708 Industrial production r 709 Factory employment and pay rolls 710 Building „ 711 Commodity movements 712 Wholesale trade _ 712 Retail trade -___ 713 Bank suspensions and commercial failures 714 Foreign baaking and business conditions: Reestablishment of the gold standard in Argentina. 715 Annual report of the National Bank of Rumania ^ 717 Financial statistics for foreign countries: Conditions of central banks 720 Condition of commercial banks 722 Discount rates of 32 central banks 722 Money rates in foreign countries 723 Gold exports and imports of principal countries . 724 Foreign exchange rates _ 725 Price movements in principal countries— Wholesale prices 726 Retail food prices and cost of living 728 Changes in national and State bank membership 729 Fiduciary powers granted to national banks 729 Detailed banking statistics for the United States 730 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 13 OCTOBER, 1927 No. 10 REVIEW OF THE MONTH wheat is expected to be more than offset by an increase of over 100,000,000 bushels in the yield Increased demand for bank credit during the of spring wheat. Larger production than last past two months has reflected largely the year is expected for the other small grains, with g , seasonal requirements for credit the exception of oats, for potatoes, and for hay. growth of and currency arising in connec- On the other hand, the cotton crop is estimated credit tion with the harvesting and at more than 5,000,000 bales below last year's marketing of crops. Between the end of July output and the corn crop at 200,000,000 bush- and September 28 total loans and investments els less than a year ago. The table below gives of reporting member banks in leading cities the September 1 estimates for the principal increased by about $500,000,000, about one- half of this growth representing increases in crops, compared with last year's production loans on securities and in investments and and with the average for the five years, 1922- two-thirds additional loans for agricultural and 1926. An article elsewhere in this issue dis- commercial purposes. Currency requirements cusses the agricultural production in 1927 in of the harvesting season have increased the more detail. 7 member banks demands for cash from the re- PRODUCTION OF FARM CROPS serve banks, and this increase in currency [In millions of units] demand has given rise to a growth in the Sept. 1, Average volume of reserve bank credit outstanding. Crop Unit 1927,fore- 1926 crop for 1922- Another factor in the increased demand for cast 1926 reserve bank credit in September has been an Wheat: export of gold, largely to Argentina. Total Bushels... 861 833 808 Winter do 553 628 556 Spring . do 308 205 252 Compared with a year ago, bills and securi- Corn .do 2,457 2,647 2,767 Cotton Bales 12.7 18.0 13.5 ties of the reserve banks at the end of Septem- Oats __ Bushels. __ 1,191 1,250 1,352 Rye do 62 41 64 ber were smaller by more than $130,000,000, Barley do 259 188 193 Potatoes, white do 400 356 394 reflecting in part the effect of gold imports and Hay, tame Tons 101 86 91 in part a decrease for the year in the demand for currency, due primarily to the prevailing The general level of prices at which the lower level of prices compared with a year ago. farmers are marketing their products is con- The gold imports and the inflow of currency siderably more favorable this from circulation, both of which are influences Agricultural , . Q2fi pr;ppc, of prices year man m iy%b- \r Ot diminishing the demand for reserve bank credit, cotton, corn, and cattle have have been offset in part during the year by an advanced and are much higher than a year increase in reserve requirements of member ago, and the prices of some types of hides and banks arising out of the growth in their deposit skins are higher than they have been at any liabilities.