FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON , 1920 WASHINGTON GOVERNMENT PRINTING OFFICE 1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. W. P. G. HARDING, Governor. DAVID F. HOUSTON, EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, Comptroller of the Currency. CHARLES S. HAMLIN. HENRY A. MOEHLENPAH. WALTER S. LOGAN, General Counsel. W. T. CHAPMAN, Secretary. W. W. HOXTON, Executive Secretary. R. G. EMERSON, Assistant Secretary. H. PARKER WILLIS, Director, Division of Analysis and Research. W. M. IMLAY, Fiscal Agent. M. JACOBSON, Statistician. W. W. PADDOCK, Chief, Division of Examination- E. L. SMEAD, Chief, Division of Reports and Statistics. J. E. CRANE, Acting Director, Division of Foreign Exchange. 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. Moras... C. C. Bullen... W. Willett. New York. Pierre Jay Benj. Strong, jr.1 J. H. Case2.... L. H. Hendricks.* L. F. Sailer3... J. D. Higgins.3 E. R. Kenzel.. Channing Rudd.8 G. L. Harrison. A. W. Gilbart.3 Leslie R. Rounds.* J. W. Jones.3 Philadelphia. R. L. Austin. George W. Norris. Wm. H. Hutt, jr W. A. Dyer. Cleveland.... D.C.Wills... E. R. Fancher. .. M. J. Fleming4 H. G. Davis. Frank J. Zurlinden 4. Richmond. Caldwell Hardy. George J. Seay. C. A. Peple Geo. H. Keesee. R. H. Broaddus A. S. Johnstone 4 JohnS. Walden4 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. B.G. McCloud4 St. Louis Wm. McC. Martin. D. C. Biggs 0. M. Attebery J. W. White. Minneapolis... JohnH. Rich R. A. Young S. S. Cook. 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 Clerk5 C. H. Stewart5 , 1 On leave of absence. 2 Acting governor. 3 Controller. < 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. Tialloa* 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: (acting). Detroit branch R. B. Locke. Salt Lake City branch. R. B. Motherwell. St. Louis: Seattle branch C. A. McLean (acting"). Louisville branch W. P. Kincheloe. Spokane branch W. L. Partner (acting). 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 peri- odical publication of the Board. It is printed in two editions, of which the first contains the regular official announcements, the national review of business condi- tions and other general matter, and is distributed without charge to the member banks of the Federal Reserve System. 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. Member banks desiring to have the BULLETIN supplied to their officers and directors may have it sent to not less than 10 names at a subscription price of $2 per annum. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS. Page. Review of the month ; 769 Business, industry, and finance, July, 1920 783 The coal shortage 789 Employment conditions 791 Condition of wholesale trade 795 Terms of sale in the principal industries 797 Economic conditions in Brazil 813 Stock of money in the United States, 1914-1920 824 Earnings and expenses of the Federal Reserve Banks 828 Official: State banks and trust companies admitted to system 833 Banks granted authority to accept up to 100 per cent of capital and surplus 833 Charters issued to national banks 833 Fiduciary powers granted to national banks 834 Rulings of the Federal Reserve Board 835 Law department 835 Miscellaneous: July crop report 832 Commercial failures reported 833 Statistical: Wholesale prices in the United States 836 Retail trade index 839 Foreign trade index 841 Wholesale prices abroad 842 International price index 850 Discount and interest rates prevailing in various centers 852 Physical volume of trade • 853 Debits to individual account, June and July 863 Discount and open-market operations of the Federal Reserve Banks 867 Operations of the Federal Reserve clearing system 874 Resources and liabilities of the Federal Reserve Banks 875 Federal Reserve note account 880 Condition of member banks in selected cities 882 Imports and exports of gold and silver 888 Estimated stock of money in the United States 890 Resources of State banking institutions 891 Condition of leading foreign banks of issue 893 Discount rates approved by the Federal Reserve Board 890 Diagrams: General stock of money in the United States, 1914-1920 827 Money held in Treasury and Federal Reserve Banks, also money held outside, 1917-1920 827 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 6 AUGUST, 1920. No. 8 REVIEW OF THE MONTH. banking situation has been distinctly less influential than during the recent past. Relatively slight activity in the money The Secretary of the Treasury in a state- market has been necessary on ment issued July 26 reviews the developments Treasury fae par^ 0{ fae Government nnance. r in the Treasury situation which have taken during the month ot July. place during the past year. In sketching the Redemption of certificates of indebtedness fall- outcome of the 12 months' operations he says: ing due up to July 15 has continued, but the "On the basis of daily Treasury statements, fiscal operations of the month have been really the total ordinary receipts for the fiscal year little more than a continuation of those of the ended June 30 amounted to $6,694,565,388.88, last month of the past fiscal year. On July 21 and current ordinary disbursements amounted Secretary Houston announced that subscrip- to $6,766,444,461.09, leaving a net current deficit of only $71,879,072.21 for the fiscal tions for the 5f per cent Treasury certificates year 1920, the first full fiscal year after hos- of indebtedness dated July 15, 1920, which had tilities ceased. After taking into account the previously been announced, and maturing special deposit of the War Finance Corporation, January 15, 1921, as well as the issue dated resulting from its redemption of United States July 15, 1920, and maturing March 15, 1921, securities, the net ordinary disbursements for the fiscal year 1920 were $6,403,343,841.21, had been closed on Tuesday, July 20. Reports leaving an adjusted surplus of $291,221,547.67 received from the 12 Federal Reserve Banks for the fiscal year. showed that the combined issue, which was for "The operations incident to the handling of $200,000,000, had been oversubscribed to the the maturities of Treasury certificates from extent of $1,061,500, allotments being as June 15 to July 15 have now been completed and have resulted in further reductions in follows: Total subscrip- both the gross debt and the floating debt of tions allotted. the United States. The gross debt on June 30, New York $90, 391, 500 San Francisco 15, 000, 000 on the basis of daily Treasury statements, Philadelphia 14, 250, 000 amounted to $24,299,321,467.07, as against Kansas City 8, 005, 500 $25,484,506,160.05 at the end of the previous Cleveland 14,154, 500 fiscal year on June 30, 1919, and $26,596,701,- St. Louis 6, 002, 500 Boston 12, 638, 500 648.01 on August 31, 1919, when the gross Chicago 18, 221, 500 debt was at its peak. In other words, the Atlanta 3, 211, 000 ross debt on June 30, 1920, had been reduced Richmond 3, 745, 000 y $2,297,380,180.94 from its peak on August Dallas 1, 687, 500 f Minneapolis 1, 754, 000 31, 1919, and by $1,185,184,692.98 from the Treasury 12, 000, 000 figure on June 30, 1919. On July 20, 1920, on the basis of daily Treasury statements, the Total 201,061,500 gross debt amounted to $24,264,309,321.54, showing a further reduction of about $35,000,- July receipts on ordinary account amounted 000 after taking into account the $201,061,500 to 5230,366,525, while disbursements on ordi- face amount of Treasury certificates issued nary account were $306,501,839, a difference of under date of July 15.