Federal Reserve Bulletin September 1925
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FEDERAL RESERVE BULLETIN SEPTEMBER, 1925 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Business and Banking Conditions Belgian Debt Agreement Guaranty of Bank Deposits WASHINGTON GOVERNMENT PRINTING OFFICE 1925 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, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. 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. WALTER W. STEWART, Director, Division of Research W. M. IMLAY, Fiscal Agent. and Statistics. J. F. HERSON, E. A. GOLDENWEISERJ Assistant Director, Division of Chief, Division of Examination, and Chief Federal Research and Statistics. Reserve Examiner. E. L. SMEAD, Chief, Division of Bank Operations.- FEDERAL ADVISORY COUNCIL District No. 1 (BOSTON) CHAS. A. MORSS. District No. 2 (NEW YORK) PAUL M. WARBURG, President. District No. 3 (PHILADELPHIA) L. L. RUE. District No. 4 (CLEVELAND) GEORGE A. COULTON. District No. 5 (RICHMOND) JOHN M. MILLER, Jr. District No. 6 (ATLANTA) OSCAR WELLS. District No. 7 (CHICAGO) FRANK O. WETMORE. District No. 8 (ST. LOUIS) BRECKINRIDGE JONES. District No. 9 (MINNEAPOLIS) G. H. PRINCE. District No. 10 (KANSAS CITY) E. F. SWINNEY, Vice President. District No. 11 (DALLAS) ^.__ W. M. MCGREGOR. 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. Pierre Jay Benj. Strong J. H. Case L. H. Hendricks.* New York.. L. F. Sailer A. W. Gilbart.i G. L. Harrison J. W. Jones.* E. R. Kenzel G. E. Chapin.i Ray M. Gidney.1 L. R. Rounds.1 Philadelphia.... R. L. Austin Geo. W.Norris... Wm. H. Hutt C. A. Mcllhenny. Cleveland E. R. Fancher M. J. Fleming J. C. Nevin. D.C.Wills Frank J. Zurlinden. Richmond George J. Seay C. A. Peple Geo. H. Keesee. Wm, W. Hoxton R. H. Broaddus John S. Walden, jr.i Atlanta M. B. Wellborn... J. L. Campbell M. W. Bell. Oscar Newton Creed Taylor Chicago J. B. McDougal... C. R. McKay W. C. Bachman.i Wm. A. Heath John H. Blair K. C. Childs.i J. H. Dillard.i D. A. Jones.1 O. J. Netterstrom.i Clarke Washburne.1 St. Louis Wm. McC. Martin.. D. C. Biggs O. M. Attebery J. W. White. John R. Mitchell.-.. W. B. Geery Gray Warren. Minneapolis. _ R. A. Young B.V.Moore 1 Harry Yaeger« Frank C. Dunlop. Kansas City.. M. L. McClure W.J. Bailey C. A. Worthington. J. W. Helm. Dallas R.R.Gilbert Fred Harris. C.C.Walsh Lynn P. Talley R. B. Coleman San Francisco John Perrin J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk L. C. Pontious 1 Controller. 2 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. Cincinnati branch L. W. Manning. Omaha branch L. H. Earhart. Pittsburgh branch Geo. DeCamp. Denver branch J. E. Olson. Richmond: Oklahoma City branch C.E.Daniel. Baltimore branch A. H. Dudley. Dallas: Atlanta: El Paso branch M. Crump. New Orleans branch Marcus Walker. Houston branch D. P. Reordan. Jacksonville branch Geo. R. DeSaussure. San Francisco: Birmingham branch A. E. Walker. Los Angeles branch R. B. Motherwell. Nashville branch J. B. Fort, jr. Portland branch ._ Frederick Greenwood. Chicago: Salt Lake City branch W. L. Partner. Detroit branch W. R. Cation. Seattle branch C. R. Shaw. St. Louis: Spokane branch Louisville branch W. P. Kincheloe. Memphis branch V. S. Fuqua. 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 contains, in addition to the regular official announcements, the national review of business conditions, detailed analyses of business conditions, research studies, reviews of foreign banking, and complete statistics showing the condition of Federal reserve banks and member banks. 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 The month: Page Review of the month—Business and banking conditions 599 Business conditions in the United States 605 Recent price movements in Europe 677 Belgian debt agreement 603 Guaranty of bank deposits 626 Official: Law department: State laws relating to the guaranty of bank deposits 641 Changes in State bank membership 669 Changes in national bank membership 670 Fiduciary powers granted to national banks 669 Business statistics for the United States: Revision of indexes of employment and pay rolls 668 Industrial activity 671 Commodity movements _ -- 674 Wholesale and retail trade 675 Estimate of crop production 670 Foreign banking and business conditions: Annual report of South African Reserve Bank 678 Financial statistics for principal foreign countries 680 Foreign trade of principal countries 683 Industrial statistics for England, France, Germany, and Canada 684 Price movements in principal countries— Federal Reserve Board wholesale price indexes 686 Wholesale prices in principal countries 687 Retail prices and cost of living in principal countries 688 Banking and financial statistics: Federal reserve banks— Condition of Federal reserve banks 689 Federal reserve note account 692 Holdings of earning assets 693 Discount and open-market operations of Federal reserve banks 694 Gold settlement fund 704 Discount rates of Federal reserve banks 704 Member banks— Condition of reporting member banks in leading cities 695 Bankers' balances at reporting member banks in Federal reserve bank cities . 696 Deposits of all member banks 697 All member banks—Abstract of condition reports on June 30, 1925-- 698 Bank debits^ _ 702 Member banks and nonmember banks on par list and not on par list 703 Money rates in principal cities 705 Money in circulation _ 703 Gold and silver imports and exports — 706 Foreign exchange rates and index 707 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 11 SEPTEMBER, 1925 No. 9 REVIEW OF THE MONTH siderably above the general average for all The course of business in recent months commodities, have declined, while those of has been characterized by a rise in prices, a agricultural commodities have increased by 16 slight upturn in industrial pro- per cent and are at present above the general Recent course Auction after several months average. The chart shows the course of prices for the past three years, classified into agri- of business and f d u continued growth credit. ' & cultural and nonagricultural prices. in building construction, and 180 180 an increase in the volume of commodity dis- /HOLESALE PRICE! tribution. This increase in business activity ( 1913 = 100 ) 170 ^ 170 *~ \ Non- has reflected a sustained demand by domestic \Agricu!tural consumers, both rural and urban, and by Commodities \_ foreign purchasers of American products, par- 160 ^4 / 160 ticularly grains and cotton. With commodity distribution in relatively large volume, stocks 150 150 Agricultural i*""*^ of commodities have continued to be at a comparatively constant level. Commercial de- 14O x r mand for bank credit has recently increased, but the volume of loans for industrial and 130 130 commercial purposes is still below that of the opening of the year. A large growth in the 120 1923 1924 1925 volume of loans on securities, however, has Bureau of Labor Statistics index of wholesale prices, with commodities carried the total of loans and investments to classified as agricultural and nonagricultural. a higher level than at any previous time. Con- A more detailed analysis of price changes ditions in the money market in recent months during the past year on the basis of the nine have been firmer than earlier in the year and commodity groups shown by the Bureau of money rates have remained considerably above Labor Statistics indicates that the 9 per cent the exceptionally low level of last year. rise in the average since July, 1924, reflects Wholesale prices in July were about 9 per largely an advance of 15 per cent in farm prod- cent higher than last summer, after advancing ucts and foods, which together carry in the continuously since June, 1924, computation of the index about one-half of the Price move- with t]ae exception of a brief weight of all commodities. In the table on the men s* period of sharp recession last next page are shown price indexes of the nine spring. The present average of prices is some- commodity groups for July and October, 1924, what below the high point reached in March and March, May, and July of the present year. of this year, but slightly above the earlier peak Of the first six groups shown in the table, of the spring of 1923. While the general price which together comprise seven-eighths of the level is thus approximately the same as two weight assigned to all commodities, farm years ago, there has been during this period a products and foods are the only groups for readjustment between the prices of different which prices advanced materially during the groups of commodities.