Federal Reserve Bulletin November 1922
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FEDERAL RESERVE BULLETIN (FINAL EDITION) ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON NOVEMBER, 1922 WASHINGTON GOVERNMENT PRINTING OFFICE 1922 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD, Ex officio members: -, Governor. A. W. MELLON, ; EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman. I ADOLPH C. MILLER. D. R. CRISSINGER, ; CHARLES S. HAMLIN. Comptroller of the Currency. ! JOHN R. MITCHELL. W. W. HOXTON, Secretary. | WALTER WYATT, General Counsel. j WALTER W. STEWART, W. L. EDDY, Assistant Secretary. ! Directory Division of Analysis and Research. W. M. IMLAY, Fiscal Agent. \ M. JACOBSON, Statistician. J. F. HERSON, I E. A. GOLDENWEISER, Associate Statistician. Chief, Division of Examination and Chief Federal j E. L. SMEAD, Reserve Examiner. • j Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL. (For the year 1922.) DISTRICT NO. 1 (BOSTON) PHILIP STOCKTON. DISTRICT NO. 2 (NEW YORK) PAUL M. WARBURG, Vice President. DISTRICT NO. 3 (PHILADELPHIA) L. L. RUE, President. DISTRICT NO. 4 (CLEVELAND) CORLISS E. SULLIVAN. DISTRICT NO. 5 (RICHMOND) J. G. BROWN. DISTRICT NO. 6 (ATLANTA) EDWARD W. LANE. DISTRICT NO. 7 (CHICAGO) JOHN J. MITCHELL. DISTRICT NO. 8 (ST. LOUIS) FESTUS J. WADE. DISTRICT NO. 9 (MINNEAPOLIS) G. H. PRINCE. DISTRICT NO. 10 (KANSAS CITY) E. F. SWINNEY. DISTRICT NO. 11 (DALLAS). R. L. BALL. DISTRICT NO. 12 (SAN FRANCISCO) D. W. TWOHY. II 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 Chas. A. Morss C. C. Bullen W. WUlett. W. W. Paddock NtwYork - Pierre Jay Benj. Strong J.H.Case L. H. Hendricks.i L. F. Sailer J. D. Higgins.i G. L. Harrison A. W. Gifbart.» E. R. Kenzel Leslie R. Rounds.i J. W. Jones.i Ray M. Gidner.1 G. E. Chapin1 Philadelphia R. L. Austin George W. Norrls Wm. II. Huttjr W. A. Dyer. Cleveland D.C.Wills.. E. R. Fancher.... M. J. Fleming H. G. Davis. *• Frank J. Zurlinden Richmond Caldwell Hardy George J.Seay C. A. Peple Geo. H. Keesee. A. S. Johnstone * JohnS. Walden» Atlanta Joseph A. McCord M. B. Wellborr L. C. Adelson M. W. Bell. J. L. Campbell Chicago Wm. A. Heath J. B. McDougai C.R. McKay W. C. Bachman.1 S.B.Cramer K. C. Childs.* JohnH. Blair J. H. Dillard.» D. A. Jones.i 0. J. Netterstrom.1 A. H. Vogt.i Clark Washbume.i St. Louis Win. McC. Martin IXC. Biggs 0. M. Attebery J. W. White. Minneapolis John H. Rich R. A. Young W. B. Geery B. V. Moor©. S. S. Cook Frank C. Dunlop > Kansas City Asa E. Ramsay W. J. Bailey C. A. Worthington J. W. Helm. Dallas...... W. B. Newsome B. A. McKinney R. G. Emerson R. R. Gilbert. San Francisco John Perrin J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk*. L. C. Pontious* » Controller. 3 Assistant to governor. «Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Manager. Federal Reserve Bank of— Manager. New York: Minneapolis: Buffalo branch W. W. Schneckenburger. Helena branch R. E. Towle. j Cleveland: Kansas City: Cincinnati branch L. W. Manning. Omaha branch L. H. Earhart. 11 Pittsburgh branch Geo. De Camp. Denver branch C. A. Burkhardt. Richmond: Oklahoma City branch C. E. Daniel. Baltimore branch A. H. Dudley. Dallas: Atlanta: El Paso branch W. C. Weiss. New Orleans branch Marcus Walker. Houston branch Floyd Ikard. 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. R. Shaw. St. Louis: Spokane branch W. L. Partner. Louisville branch W. P. Kincholo©. 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 this 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, 1917, or 1918 are available, HI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS. General summary: Page- Review of the month 1267 Business, industry, and finance, October, 1922 1274 The first three years of German reparation: Part I—The treaty of Versailles , 1288 Treasury refunding loan 1272,1296 Foreign branches of American banking institutions 1298 Official: Rulings of the Federal Reserve Board 1286 State banks admitted to system 1285 Fiduciary powers granted to national banks 1285 Charters issued to national banks 1285 Edge Act corporation authorized 1287 Business and financial conditions abroad: Railway situation in Great Britain and France 1300 The German coal situation 1308 Current economic conditions in Argentina and Brazil 1314 Economic and financial conditions in Mexico 1318 Currency and banking in South Africa 1324 Prices in Uruguay 1333 Price movement and volume of trade: International wholesale price index—United States, England, France, Canada, and Japan 1335 Comparative wholesale prices in principal countries 1338 Comparative retail prices and cost of living in principal countries 1342 Indexes of industrial activity—United Kingdom, France, Germany, Sweden, and Japan 1343 Foreign trade of principal countries 1345 Foreign trade index 1348 Ocean freight rates 1348 Report of knit-goods manufacturers of America 1224 Production and shipments of finished cotton fabrics 1225 Physical volume of trade 1226 Building statistics 1232 Retail trade 1233 Wholesale trade 1235 November estimate of corn production, by Federal reserve districts Commercial failures 1285 Banking and financial statistics: Domestic— Discount and open-market operations of Federal reserve banks 1237 Condition of Federal reserve banks 1244 Federal reserve note account 1247 Condition of member banks in leading cities 1248 Savings deposits 1224 Bank debits 1251 Operations of the Federal reserve clearing system 1256 Gold settlement fund 1255 Gold and silver imports and exports 1257 Money in circulation 1258 Discount rates approved by the Federal Reserve Board 1258 Discount and interest rates in various centers 1259 Foreign exchange rates 1260 Foreign—England, France, Italy, Germany, Sweden, Norway, Japan, and Argentina 1263 Charts: Prices of raw materials and consumers' goods 1268 Price and production of cotton, wool, and pig iron 1269 Banking progress in South Africa 1327 International wholesale price index—Federal Reserve Board 1335 Index numbers of domestic business 1226 Average monthly value of sales of chain stores Debits to individual accounts 1251 Foreign exchange index 1261 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 8 NOVEMBER, 1922. No. 11 REVIEW OF THE MONTH. volume of business. As a factor influencing the economic wealth of the Nation greater Developments in the business situation dur- output may be regarded as more fundamental ing the past year have resulted in current than price changes, but the readjustments in conditions which differ widely t Recent course from those prevailing during prices during 1921 helped to bring about in- of business. the first half of 1921. At that creased production. Business was emerging time business was endeavoring to adjust itself from depression and the new confidence created to a continued fall in prices, industry was inac- by the change in prices led to the placing of tive, and unemployment large. Since the be- orders and contracts. Price readjustments ginning of this year the level of prices has been which stimulate production have a different advancing and the volume of industrial output significance from price advances which con- increasing. The series of changes by which tinue after industry has reached its productive this new condition was brought about consti- capacity and when further advances register tute so important an influence on the course of merely competitive bidding. business as to call for some account of the The character and extent of the influence process. Effects of a business resumption are exercised by prices become evident only when so uneven among various industries that the the readjustments between cer- process of readjustment may continue for Price readjust- ^n gT0UpS of prices are con- some time before a general change of direction ^f * some detail. Dur- is noticeable. Looking back over the recent ing the downward swing ot the period, however, it is now possible to discern price level from the peak in May, 1920, to the certain well-marked movements that have beginning of relative stability in June, 1921, taken place. Some of the developments are the prices of raw materials fell 45 per cent to still too much within the present to be fully an index of 135 (prices in 1913 = 100), while apprehended, but their significance is clearer the prices of goods bought by consumers fell even in short retrospect than at the time they only 39 per cent to a level of 153.