Federal Reserve Bulletin October 1922
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FEDERAL RESERVE BULLETIN (FINAL EDITION) ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON OCTOBER, 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. ADOLPH C. MILLER. D. R. CRISSINGER, CHARLES S. HAMLIN. Comptroller of the Currency. I JOHN R. MITCHELL. W. W. HOXTON, Secretary. j WALTER WYATT, General Counsel. W. L. EDDY, Assistant Secretary. j WALTER W. STEWART, I Director, Division of Analysis and Research. W. M. IMLAY, Fiscal Agent. M. JACOBSON, Statistician. J. F. HERSON, E. A. GOLDENWEISER, Associate Statistician. Chief, Division of Examination and Chief Federal E. L. SMEAD, Reserve Examiner. Chief, Division cf 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. II. 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 BANKS. Federal Reserve Bank of— | Chairman. Governor. Deputy governor. Cashier. Boston Frederic H. Curtiss.. Chas. A. Mores C. C. Bullen w. Willett. W. W. Paddock New York.. Pierre Jay Benj. Strong J. H. Case L. H. Hendricks.i L. F. Sailer J. D. Higgins.i G.L.Harrison A. W. Gilbart.i E. R. Kenzel Leslie R. Rounds.1 J. W. Jones.* Ray M. Gidney.i Philadelphia.. J R. L. Austin .; Goorgo W. Norris.. Wm. H. Huttjr.... VV. A. Dyer. Cleveland .; D. C. Wills .i IS. R. Fancher M. J. Fleming. H G. Davis. Frank J. Zurlinden.. Richmond I Caldwell Hardy i George J. Seay C. A. Peple Geo. [I. Keesee. R. 11. Broaddus A. S. Johnstone1 JohnS. Walden*.... ! Atlanta Joseph A. McCord... ..., M. B. Wellborn. L. C. Adelson M VV. Bell. J.L.Campbell Chicago Wm. A. Heath ...j J. B. McDougal. C. R. McKay VV. c Bachman.1 S. B. Cramer K Childs.i John H. Blair J. IIc.. Dillard.» I). A. Jones.J 0. J. Netterstrom.i A. ir. Vogt.1 Clark Washburne.1 St. Louis Wm. McC. Martin.. D. C. Biggs O. M. Attebery J. VV. White. Minneapolis... JohnH. Rich R. A. Young \V. B. Geery B. V. Moore. S. S. Cook Frank C. Dunlop » Kansas City... Asa E. Ramsay ! W. J. Bailey , C. A. Worthington J. w. Helm. Dallas Wm. F. Ramsey... B. A. McKinney.. R. G. Emerson U. it. Gilbert. San Francisco. John i'errin J. U. Calkins Wm. A. Day VV. N. Ambrose. Ira Clerk* L. C. Pontious * »Controller. 2 Assistant to governor. 3 Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. I I Federal Reserve Bank of— Manager. Federal Reserve Bank of— 1 Manager. New York: Minneapolis: j Buffalo branch W. W. Schneckenburger. Helena branch .., R. E.Towle. Cleveland: Kansas City: Cincinnati branch L. W. Manning. Omaha branch .. L. H. Earhart. 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. j San Francisco: i Birmingham branch. A. E. Walker. Los Angeles branch .. C. J. Shepherd. Nashville branch J. B. McNamara. I »ortland 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. Kincheloe. Memphis branch J. J. Heflin. j Little Rock branch A. F. Bailey. I SUBSCRIPTION PRICE OP 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. Remittanceo should be made to the Federal Reserve Board. No complete sets of the BULLETIN for 1915, 1916, 1917, or 1918 are available in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE^OF CONTENTS. General summary: Page. Review of the month 1151 Business, industry, and finance, September, 1922 1159 Cattle loan companies 1171 Official: State banks admitted to system 1169 Fiduciary powers granted to national banks - 1170 Charters issued to national banks 1170 Banks granted authority to accept up to 100 per cent of capital and surplus 1170 Business and financial conditions abroad: Survey for United Kingdom, France, Italy, Germany, Argentina, Brazil, and Chile 1177 Economic and financial conditions in Mexico - - - 1195 Russian banking and currency , 1200 Price movement and volume of trade: International wholesale price index—United States, England, France, Canada, and Japan 1206 Wholesale prices of individual commodities in the United States i 1210 Comparative wholesale prices in principal countries 1212 Comparative retail prices in principal countries 1217 Indexes of industrial activity—England, France, Germany, Sweden, and Japan 1218 Foreign trade—United Kingdom, France, Italy, Sweden, Norway, Japan, Germany, and United States 1220 Foreign trade index 1223 Ocean freight rates 1224 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 October crop report, by Federal reserve districts 1236 Commercial failures 1170 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: Movement of principal assets and liabilities of Federal reserve and member banks 1157 International wholesale price index—Federal Reserve Board 1206 Index numbers of wholesale prices in the United States—Federal Reserve Board 1207 Index numbers of wholesale prices in England—Federal Reserve Board 1208 Index numbers of domestic business 1226 Comparison of sales of department stores and mail-order houses 1233 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 OCTOBER, 1922, No. 10 REVIEW OF THE MONTH. In the autumn of that year the lending power of the reserve system was mobilized to meet the The contrast between the general conditions demand for credit which mounted steadily until of credit now prevailing and the conditions in the close of the crop-moving period. By the the autumn of 1921 and of 1920 Crop - financ- ig made dear b the eftge with autumn of 1921 the business situation and the ing problem of level of prices had undergone great change, which the banks are meeting and, in general, credit conditions were easier. the financial requirements of The local banks of the agricultural districts, the current crop movement. From autumn to however, were still in need of assistance. The autumn the volume and distribution of the difficulty then was that the prices of farm prod- credit burden carried by the banks differ, and ucts had fallen so low that farmers could not these differences largely determine the method realize enough from the sale of crops to meet of providing the additional funds necessary for their obligations at the banks. This was the the season. The position of the credit markets period of " frozen loans." The banks, being and the condition of member banks influence j unable to obtain full liquidation of old loans each year the extent to which the assistance of at home, were obliged to rely upon rediscount- the Federal reserve banks is needed to meet ing as a means of providing their borrowers the seasonal demands of agriculture. This with new funds. The Federal reserve banks season the method employed is interesting as in the crop-producing districts again found it indicating the crop-moving problem of 1922 necessary in 1921 to rediscount with other and as presenting evidence of banking develop- Federal reserve banks. During the present ments during recent months. crop-moving period, however, though the The important fact about the financing of the reserve banks have stood ready to extend crop movement of this year is that although the accommodation at lower rates than in the pre- yield of the principal crops is in excess of a ceding year, there has been little call for their year ago, yet the credit necessary to their aid.