Federal Reserve Bulletin November 1920
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON NOVEMBER, 1920 WASHINGTON GOVERNMENT PRINTING OFFICE 1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD. EX OFPICIO MEMBERS. W. P. ,G. HARDING, Governor. EDMUND PLATT, Vice Governor. DAVID F. HOUSTON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. D. C. WILLS. W. W. HOXTON, Secretary. WALTER S. LOGAN, General Counsel. W. L. EDDY, Assistant Secretary. R. G. EMERSON, Assistant to Governor. W. M. IMLAY, Fiscal Agent. H. PARKER WILLIS, J. F. HERSON, Chief, Division of Examination and Chief Federal Director, Division of Analysis and Research. Reserve Examiner. M. JACOBSON, Statistician. J. E. CRANE, E. L. SMEAD, Acting Director, Division of Foreign Exchange. Chief, Division of Reports and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis OFFICERS OF FEDE!^ RESERVE BANKS. Federal Reserve Bank of— Chairman. Governor. Deputy governor. Cashier. Boston Frederic H. Curtiss... Chas. A. Morss C. C. Bullen W. Willett. W. W. Paddock New York Pierre Jay Benj. Strong l J. H. Case2 L. H. Hendricks.3 L. F. Sailer J. D. Higgins.3 E. R. Kenzel Channing Rudd.3 G. L. Harrison A. W. Gilbart.3 Leslie R. Rounds.3 J. W. Jones.3 Philadelphia R. L. Austin George W. Norris Wm. H. Hutt, jr W. A. Dyer. Cleveland L. B. Williams4 E. R. Fancher M. J. Fleming H. G. Davis. Frank J. Zurlinden... Richmond Caldwell Hardy George J. Seay C. A. Peple Geo. H. Keesee. T> XT T5vrkQr1/-1 -Ma rt. ±1. JDroaacius A. S. Johnstone 5 JohnS. Walden5 Atlanta Joseph A. McCord M. B. Wellborn L. C. Adelson M. W. Bell. Chicago Wm. A. Heath J. B. McDougal C. R. McKay S. B. Cramer. "R P M^Plrm/4 5 St. Louis.. Wm McC Martin D C Biggs 0 M. Attebery J W. White Minneapolis JohnH. Rich R. A. Young W. B. Geery B. V. Moore. Q a r^^v Kansas City Asa E. Ramsay J. Z. Miller, jr C. A. Worthington J. W. Helm. Dallas Wm. F. Ramsey R. L. Van Zandt Lynn P. Talley Sam R. Lawder. San Francisco John Perrin J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk e C. H. Stewart6 i On leave of absence. 2 Acting governor. * Controller. * Acting chairman. & Assistant to governor. 6 Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Manager. Federal Reserve Bank of— Manager. New York: Kansas City: Buffalo branch Ray M. Gidney. Omaha branch L. H. Earhart. Cleveland: Denver branch C. A. Burkhardt. Cincinnati branch... L. W. Manning. Oklahoma City branch. C. E. Daniel. Pittsburgh branch... Geo. De Camp. Richmond: Dallas: Baltimore branch... Morton M. Prentis. El Paso branch W. C. Weiss. Atlanta: Houston branch E. F. Gossett. New Orleans branch. Marcus Walker. Jacksonville branch. Geo. R. De Saussure. San Francisco: Birmingham branch. A. E. Walker. Los Angeles branch... C. J. Shepherd. Nashville branch J. B. McNamara. Portland branch Frederick Greenwood. Chicago: Salt Lake City branch. R. B. Motherwell. Detroit branch R. B. Locke. Seattle branch C. A. McLean. St. Louis: Spokane branch W. L. Partner. Louisville branch. .. W. P. Kincheloe. Memphis branch.... J. J. Heflin. 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. It is printed in two editions, of which the first contains the regular official announcements, the national review of business conditions, and other general matter, and is distributed without charge to the member banks of the Federal Reserve System. Additional copies may be had at a subscription price of $1.50 per annum. The second edition contains detailed analyses of business conditions, special articles, review of foreign banking, and complete statistics showing the condition of Federal Reserve Banks. For th^s second edition the Board has fixed a subscription price of $4 per annum to cover the cost of paper and printing. Single copies will be sold at 40 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS. Pagr. Review of the month 1123 Business, industry, and finance, October, 1920 1135 Condition of wholesale trade 1143 Production of knit goods 1145 Production o? finished cotton fabrics : 1145 Report of the gold committee of the American Bankers' Association upon the McFadden gold bill 1147 Terms of sale in the principal industries 1149 Foreign exchange rates in New York on belligerent, neutral, and silver-standard countries 1158 Economic and financial conditions in Cuba 1162 The investment trust as a channel for investment abroad 1168 Official: State banks and trust companies admitted to system 1174 Banks granted authority to accept up to 100 per cent of capital and surplus 1175 Charters issued to national banks 1175 Fiduciary powers granted to national banks 1174 Rulings of the Federal Reserve Board : 1176 Regulations of the Federal Reserve Board, series of 1920 1179 Miscellaneous: November crop report : 1175 Commercial failures reported 1175 Statistical: Retail trade index ; 1195 Foreign trade index 1197 Wholesale prices abroad 1198 Wholesale prices in the United States 1210 Discount and interest rates prevailing in various centers. 1215 Physical volume of trade 1216 Debits to individual account, September and October 1225 Discount and open-market operations of the Federal Reserve Banks 1228 Operations of the Federal Reserve clearing system 1234 Resources and liabilities of the Federal Reserve Banks 1235 Federal Reserve note account 1240 Condition of member banks in selected cities 1241 Imports and exports of gold and silver 1248 Estimated stock of money in the United States -... 1250 Earnings and dividends of State bank and trust company members 1251 Discount rates approved by the Federal Reserve Board 1250 Diagrams: Foreign exchange rates on belligerent, neutral, and silver-standard countries 1159,1160 Wholesale prices in the United States 1212 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 6 NOVEMBER, 1920. No. 11 REVIEW OF THE MONTH. ing-fund charges, but also to retire the floating indebtedness and a considerable part of the The situation in public finance during Octo- Victory notes before the close of the fiscal year ber has shown no striking de- 1923. Earlier plans and expectations were Treasury y l pments. For the month as disarranged by the unexpectedly large burdens finance. e O r placed upon the Treasury by the transporta- a whole total ordinary receipts tion act. According to the estimates there were $220,034,805, while total ordinary dis- will be paid on account of the railroads during bursements were $426,497,372, the deficit on the current fiscal year probably a billion dol- lars, of which one-quarter billion has already ordinary account being thus $206,462,567. On been called for and paid. It is obvious that October 18 it was announced that the total these payments will limit the progress which amount of subscriptions received for the issue the Government had expected to make in the of Treasury certificates of indebtedness dated retirement of the floating debt. It is expected, October 15 and maturing March 15 next was however, that perhaps the heaviest payments on this account will have been completed by $185,076,500, the total amount of subscriptions the spring of next year, and then for the re- allotted under this offering being $124,252,500. maining months of the fiscal year the Treasury Ten of the Federal Reserve districts oversub- looks forward to a more rapid reduction of the scribed their quota. An important survey of floating debt. By the end of the fiscal year, in the absence of unforeseen contingencies, it will the present situation in connection with the probably be reduced below two billions and it public debt was given by the Secretary of the may be brought as low as a billion and a half. Treasury in an address before the American The balance should be retired during the fiscal Bankers' Association on October 20, in which year 1922. By the end of that year the Vic- he said: tory loan should have been reduced by perhaps "On the basis of daily Treasury statements, a half billion dollars as a result of sinking-fund the gross debt of the United States on August operations. The remainder, say, 3| billions, 31, 1919, was slightly over 26^ billion dollars, will then have become substantially a floating of which nearly 4 billions represented loan debt, as it will mature during the following and tax certificates maturing within the year. fiscal year. Provision should be made, there- On September 30, 1920, the gross debt was fore, under proper Treasury regulations, for the $24,087,000,000, a reduction of over 2\ bil- acceptance of Victory notes during the fiscal lions,while the floating debt was $2,347,000,000, year 1923, before maturity, in payment of in- or approximately $1,600,000,000 less than on come and profits taxes. In this way and August 31, 1919. These reductions were ef- through sinking-fund operations it should be fected chiefly by the application of the pro- possible to reduce the Victory loan so that at ceeds of taxation and salvage and were made maturity it would stand at approximately possible to some extent by the reductions of three billions of dollars." Treasury balances effected as a result of re- During the past few weeks the Federal Re- duced expenditure and the retirement of large serve Board has held its usual amounts of loan certificates.