FEBRUARY, 1924 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Banking Position at Opening of 1924 Summary of Business Conditions in the United States Foreign Loans Placed in the United States The London Money Market in 1923 WASHINGTON . GOVERNMENT FEINTING OFFICE 1024 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD. Ex officio members: D. R. CRISSINGER, Governor, A. W. MELLON, EDMUND PLATT, Vice Governor. Secretary of the Treasuryr, Chairman* ADOLPH 0. MILLER. OHARLES S. HAMLIN. HENRY M. DAWES, GEORGE R. JAMES. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary, WALTER WYATT, General Counsel. J. 0. NOELL, Assistant Secretary, WALTER W, STEWART, W. M. IMLAY, Fiscal Agent. Director9 Division of Research and Statistics. M. JACOBSON, Statistician. J. F. HBRSON, Chief, Division of Examination and Chief Federal E. A. GOLDENWEISER, Associate Statistician. Reserve Examiner. E. L. SMEAD, Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL. District No. 1 (BOSTON) :. ALFRED L. AIKEN. District NO. 2 (NEW YORK) ....PAUL M. WARBURG, Vice President. District No. 3 (PHILADELPHIA) „.. .L. L. RUE, President. District No. 4 (CLEVELAND).„. ....0. E. SULLIVAN. District No. 5 (RICHMOND) „ JOHN M. MILLER, Jr. District No. 6 (ATLANTA) . .OSCAR WELLS. 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) ...W. M. MCGREGOR. 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 RESERYE BANKS, Federal Reserve Bank of— Chairman. Governor. Deputy governor. Cashier. Boston.*.* Frederic H. Curtiss. W. P. G. Harding.... C. C. Bullen W. Wiliett. W.W. Paddock.... NewYork Pierre Jay Benj. Strong J.H.Case..... L. H, Hendrfckg.* L. F. Sailer... J. D. Higgins. * G. L. Harrison A. W. Gllbart. * E. R. Kenzel J. W. Jones. * G. E. Chapin. * Philadelphia R. L. Austin... George W.Norrig...., Wm. H. Hutt W. A. Dyer. Cleveland D.C.Wills E. R. Fancher M. J. Fleming J. C. Nevin. Frank J. ZurMnden........ Richmond W. W. Hoxton.... George J.Seay........ C.A. Peple Geo. H. Keesee. R. H. Broaddus * A. S. Johnstons fi John S. Waiden * Atlanta Joseph A. McCord M. B. Wellborn... L. C. Adelaon... M.W.Bell. J. L. Campbell.. Chicago....... ....... Wm. A. Heath. J.B.McDougal C. R.-McKay W. C. Bachman. John H. Blair K. C. Childs. * J.H.Dillard.* D. A. Jones.* 0. J. Netterstrom.» Clark Washburae.» St. Louis Wm. McC. Martin ,. D.C. Biggs O.M.Attebery.... J. W. White. John H. Rich...*.. *. W. B. Geery Gray Warren. Minneapolis R. A. Young....* B.V.Moore - Harry Yaeger8.^ Frank C. Duniop1 Kansas City M. L.McCIure W.J.Bailev. C. A. Worthington J. W. Helm. Dallas...... Lynn P. Talley B. A. McKraney... R. G. Emerson.... R. R. Gilbert. San Francisco. John Perrin J.U.CalMns Wm. A. Day W. N. Ambrose. Ira Clerk" L. C. Pontious8... 1 Controller. * 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. Cleveland: Kansas City: 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 W. C. Weiss. New Orleans branch Marcus Walker. Houston branch, R. B. Coleman. 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 W. R. Cation. Seattle branch. C. R. Shaw. St. Louis: Spokane branch W. L. Partner Louisville branch W. P. Kincheloe. Memphis branch J. J. Heflin. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN The FEDBKAL RESERVE BULLETIN is the Board's medium of communi- cation with member banks of the Federal Reserve System and is the only official organ or periodical publication of the Board. It contains, in addi- tion 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. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS. The month: Page. Review of the month—Banking position at opening of 1924 75 Summary of business conditions in the United States 79 Official: Rulings of the Federal Reserve Board 81 State banks admitted to system 82 Fiduciary powers granted to national banks 82 Charters issued to national banks 81 Banks granted authority to accept up to 100 per cent of capital and surplus. „ 82 Research studies? An index of the labor market 83 Swiss exchange and money rates, 1915-1923 88 Business conditions in the United States: Trend of business in the United States 94 Industrial statistics.„__ „ 107 Wholesale and retail trade-. _• 113 Price movements In principal countries: International wholesale price index ' _ _ _ _ 115 Comparative wholesale prices in principal countries 118 Comparative retail prices and cost of living in principal countries . 119 Business and financial conditions abroad: The London money market in 1923 2t 120 Trend of business abroad :_ 122 Industrial statistics for foreign countries 123 Foreign trade of principal countries . : !__ 124 Financial statistics for principal foreign countries. ___* ___. 125 Discount rates of central banks '_. 125 Banking and financial statistics: Federal reserve banks—• Condition of Federal reserve banks 126 Federal reserve note account 130 Holdings of earning assets 131 Discount and open-market operations of Federal reserve banks ^ _ _. 132 Federal reserve clearing system _ 133 Gold settlement fund-.--------..-,. ---- 134 Discount rates of Federal reserve banks 134 Earnings and expenses of Federal reserve banks, year 1923 135 Member banks—- Condition of member banks in leading cities.. 138 Deposits of all member banks 140 Changes in membership™ _ 141 Foreign loans placed in the United States „ „ 92 Bank debits. - — . — - 142 Money in circulation „ .- ;_ 141 Interest rates in principal cities .___ ~_ 143 Gold and silver imports and exports _ _ 144 Foreign exchange rates and index . _ 145 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 10 FEBRUARY, 1924. No. 2 REVIEW OF THE MONTH. lines sales ordinarily average about 50 per During the opening weeks of 1924, as in cent lower in January than in December, re- preceding years, the banking situation has flecting both the decline in the actual volume of reflected the financial move- retail buying after Christmas and the price Banking at mentg ugual t ^ t f ^ reductions in order to reduce stocks on hand. turn of year. mi This smaller volume of sales results in reduced year. The return now of cur- currency requirements for purchases and in rency following the heavy holiday demand, the less till money carried by merchants. Pay release of funds through first-of-year dividend rolls also are usually smaller in January than and interest payments, the seasonal flow of in December, a seasonal decline following the funds to the financial centers, and the easing slight upward trend during the fall months^ of money rates have been the important fac- with the result that less currency is with- tors affecting the position of the banks and the drawn from banks during January for pay roll money market during January. In recent purposes. During the last three months of weeks the inflow of currency from circulation 1923 the total money in circulation increased has been unusually rapid, with the result that by over $100,000,000, and, since the volume increases in reserves and decreases in volume of currency had been increasing almost con- of notes and of discounts at the Federal reserve tinuously for a year and a half, the total cir- banks were exceptionally large, even for this culation on January 1, 1924, was the highest season of the year. As a consequence, the in more than two years. Currency demand reserves of the Federal reserve banks rose to during this period was met by the reserve the highest figure on record, and notes in cir- banks both by an increase in Federal reserve culation and total volume of Federal reserve notes and by the payment of reserve cash bank credit fell to the lowest point in more into circulation, so that the total reserves of than five years. The return of currency in- the Federal reserve banks, as well as the vol- creased demand deposits at member banks and ume of notes, reflected changes in seasonal furnished funds for the repayments of borrow- requirements for currency. Federal reserve ings at the reserve banks. These currency and notes reached their seasonal peak and reserves credit movements affect to a greater extent a seasonal low immediately following Christ- the condition statements of reserve banks than mas. The volume of the subsequent return of member banks, since fluctuations in the de- flow of notes and gold into the reserve banks mand for currency are the chief influence af- during the four weeks after Christmas is indi- fecting changes in the volume of reserve bank cated by the fact that during those weeks credit.