Federal Reserve Bulletin October 1935
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FEDERAL RESERVE BULLETIN OCTOBER 1935 ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM AT WASHINGTON Recent Gold Movements and Banking De- velopments National Summary of Business Conditions UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1935 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MARRINER S. ECCLES, Chairman. Ex-officio members: J. J. THOMAS, Vice Chairman. HENRY MORGENTHAU, Jr., CHARLES S. HAMLIN. Secretary of the Treasury. ADOLPH C. MILLER. J. F. T. O'CONNOR, GEORGE R. JAMES. Comptroller of the Currency. M. S. SZYMCZAK- LAWRENCE CLAYTON, Assistant to the Chairman. E. A. GOLDENWEISER, Director, Division of Research ELLIOTT L. THURSTON, Special Assistant to the and Statistics. Chairman. LAUCHLIN CURRIE, Assistant Director, Division of CHESTER MORRILL, Secretary. Research and Statistics. J. C. NOELL, Assistant Secretary. WOODLIEP THOMAS, Assistant Director, Division of Research and Statistics. LISTON P. BETHEA, Assistant Secretary. S. R. CARPENTER, Assistant Secretary. E. L. SMEAD, Chief, Division of Bank Operations. WALTER WYATT, General Counsel. J. R. VAN FOSSEN, Assistant Chief, Division of Bank Operations. GEORGE B. VEST, Assistant General Counsel. J. E. HORBETT, Assistant Chief, Division of Bank B. MAGRUDER WINGFIELD, Assistant General Counsel. Operations. LEO H. PAULGER, Chief, Division of Examinations. CARL E. PARRY, Chief, Division of Security Loans. R. F. LEONARD, Assistant Chief, Division of Examina- PHILIP E. BRADLEY, Assistant Chief, Division of Secu- tions. rity Loans. C. E. CAGLE, Assistant Chief, Division of Examinations. O. E. FOULK, Fiscal Agent. FRANK J. DRINNEN, Federal Reserve Examiner. JOSEPHINE E. LALLY, Deputy Fiscal Agent. FEDERAL ADVISORY COUNCIL District no. 1 (BOSTON) THOMAS M. STEELE. District no. 2 (NEW YORK) JAMES H. PERKINS. District no. 3 (PHILADELPHIA) HOWARD A. LOEB, Vice President. District no. 4 (CLEVELAND) ARTHUR E. BRAUN. District no. 5 (RICHMOND) CHARLES M. GOHEN. District no. 6 (ATLANTA) H. LANE YOUNG. District no. 7 (CHICAGO) SOLOMON A. SMITH. District no. 8 (ST. LOUIS) WALTER W. SMITH, President. District no. 9 (MINNEAPOLIS) THEODORE WOLD. District no. 10 (KANSAS CITY) W. T. KEMPER. District no. 11 (DALLAS) JOSEPH H.FROST. District no. 12 (SAN FRANCISCO) M. A. ARNOLD. WALTER LICHTENSTEIN, Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank Chairman and Federal of- Reserve agent Governor Deputy governor Cashier Boston F. H. Curtiss R. A. Young W. W. Paddock. W. Willett. New York J. H. Case W. R. Burgess__. J, W. Jones.* G. L. Harrison W. S. Logan W. B. Matteson.i L. R. Rounds J. M. Rice.* L. F. Sailer Allan Sproul.8 C. H. Coe H. H. Kimball.1 L. W. Knoke.i Philadelphia R. L. Austin G. W. Norris W. H. Hutt C. A. Mcllhenny. J. S. Sinclair W. J. Davis.* C. A. Mcllhenny W. G. McCreedy.i L. E. Donaldson.* Cleveland.. E. S. Burke, Jr.* M. J. Fleming.. F. J. Zurlinden W. F. Taylor. H. F. Strater C. W. Arnold.* Richmond. W. W. Hoxton G. J. Seay R. H. Broaddus G. H. Keesee. J. S. Walden, Jr.« Atlanta Oscar Newton H. W. Martin M. W. BeU. H. F. ConnifE W. S. McLarin, Jr.* Chicago E. M. Stevens G. J. Schaller H. P. Preston W. H. Snyder.i C. R. McKay W. C. Bachman.i J. H. Dillard 0. J. Netterstrom.i A. T. Sihler.i E. A. Delaney.i A. L. Olson.* St. Louis... J. S. Wood- W. McC. Martin 0. M. Attebery S. F. Gilmore.* A. H. Haill.* J. G. McConkey F. N. Hall.« G. 0. Hollocher.* 0. C. Phillips.* Minneapolis-.. J. N. Peyton W. B. Geery Harry Yaeger H. I. Ziemer. H. I. Ziemer F. C. Dunlop.» Kansas City--. G. H. Hamilton C. A. Worthington- J. W. Helm. J. W. Helm Dallas C. C. Walsh B. A. McKinney— R. R. Gilbert R. B. Coleman. R. B. Coleman W. 0. Ford.i San Francisco.. J. U. Calkins W. A. Day W. M. Hale. Ira Clerk i Assistant deputy governor. 1 Assistant to the governor. > Controller. *Acting chairman; W. H. Fletcher, acting Federal Reserve agent. 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 R. M. O'Hara. Helena branch R. E. Towle. Cincinnati branch B. J. Lazar. Denver branch J. E. Olson. Pittsburgh branch T. C. Griggs. Oklahoma City branch C. E. Daniel. Richmond: Omaha branch L. H. Earhart. Baltimore branch Hugh Leach. Dallas: Charlotte branch W. T. Clements. El Paso branch.. J. L. Hermann. Atlanta: Houston branch W. D. Gentry. Birmingham branch __ J. H. Frye. San Antonio branch M. Crump. Jacksonville branch G. S. Vardeman, Jr. San Francisco: Nashville branch J. B. Fort, Jr. Los Angeles branch W. N. Ambrose. New Orleans branch Marcus Walker. Portland branch R. B. West. Chicago: Salt Lake City branch W. L. Partner. Detroit branch R. H. Buss. Seattle branch__ C. R. Shaw. St. Louis: Spokane branch D. L. Davis. Little Rock branch.. A. F. Bailey. Louisville branch J. T. Moore. Memphis branch W. H. Glasgow. 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—Recent gold movements and banking developments 641 Regulations of the Federal Deposit Insurance Corporation 646 Earnings and expenses of Federal Reserve banks 684 Condition of all banks in the United States on March 4, 1935 690-694 Condition of insured commercial banks June 29, 1935 695 National summary of business conditions 648 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, etc 649-653 Member and nonmember bank credit: All banks in the United States 656 All member banks 654,655, 685, 689 Weekly reporting member banks in leading cities 657, 686 Brokers' loans 657 Acceptances and commercial paper 658 Discount rates and money rates. 659 Security prices, bond yields, and security issues 660 Treasury finance 661 Assets and liabilities of governmental credit agencies 662 Reconstruction Finance Corporation—Loans, subscriptions, and allocations 663 Farm Credit Administration—Loans and discounts outstanding, by institutions 664 Federal Home Loan Bank Board—Loans outstanding, by institutions 664 Obligations fully guaranteed by the United States—Amounts outstanding, by agencies 664 Production, employment, car loadings, and commodity prices . 665 Merchandise exports and imports 666 Department stores—Indexes of sales and stocks 666 Freight-car loadings, by classes 666 Financial statistics for foreign countries: Gold reserves of central banks and governments 667 Gold production 668 Gold movements 668-670 Central banks 671-674 Bank for International Settlements 674 Commercial banks 675 Discount rates of central banks 676 Money rates 676 Foreign exchange rates 677 Price movements: Wholesale prices 678 Retail food prices and cost of living 679 Security prices 679 Law department: Ruling of Board: Purchase by State member bank of "securities" which are not "investment securities" 680 Federal Reserve statistics by districts, etc.: Banking and financial statistics 681-695 Industrial and commercial statistics 696-701 September crop report 702 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 21 OCTOBER 1935 No. 10 REVIEW OF THE MONTH The current movement of gold from Europe On September 30 member bank reserve bal- to the United States began early in September ances with Federal Reserve banks totaled International with sma11 shipments from Lon- $5,254,000,000, and excess re- gold and capital don. On September 17 the serves amounted to $2,630,- movements firgt gold arrived from France, 000,000. Both figures were and on September 23 shipments were received smaller than at the end of August. An in- from the Netherlands. From the middle of crease of $165,000,000 in monetarj^ gold stock September through the first week of October during the month w^as offset in its effect on about $230,000,000 of gold arrived in the United reserve balances by a seasonal growth of about States, of which $90,000,000 was from France, $50,000,000 in currency in circulation, an in- $60,000,000 from England, $55,000,000 from crease of nearly $50,000,000 in the total of the Netherlands, $15,000,000 from India, and Treasury cash and deposits with Reserve the rest from Canada and other countries. banks, and an increase of over $100,000,000 Additional shipments from Europe to the in other deposits at Reserve banks. United States were in progress. Reserve balances of member banks increased This heavy movement of gold does not in the early part of September to a new high reflect an excess of payments due to the United level of $5,388,000,000 on September 11, an States on ordinary transactions with the amount $2,820,000,000 in excess of legal re- world. During 1935 this country's merchan- quirements. During the remainder of the dise exports have exceeded its imports by only month the amount of reserve balances showed a small amount. It is estimated that this wide fluctuations, largely as a result of Treas- small excess together with net income from ury transactions and gold imports.