FEDERAL RESERVE BULLETIN MAY 1933 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Recent Banking Developments Annual Report of German Reichsbank UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON J 1933 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD Ex officio members: EUGENE R. BLACK, Governor. WILLIAM H. WOODIN, CHARLES S. HAMLIN. Secretary of the Treasury Chairman. y ADOLPH C. MILLER. J. F. T. O'CONNOR, Comptroller of the Currency. GEORGE R. JAMES. E. M. MCCLELLAND, Assistant to the Governor. E. A. GOLDENWEISER, Director, Division of Research CHESTER M OR RILL, Secretary. and Statistics. J. C. NOELL, Assistant Secretary and Fiscal Agent, CARL E. PARRY, Assistant Director, Division of Research S. R. CARPENTER, Assistant Secretary. and Statistics. WALTER WYATT, General Counsel. E. L. SMEAD, Chief, Division of Bank Operations. GEORGE B. VEST, Assistant Counsel. J. R. VAN FOSSEN, Assistant Chief, Division of Bank LEO H. PAULGER, Chief, Division of Examinations. Operations. FRANK J. DRINNEN, Federal Reserve Examiner. FEDERAL ADVISORY COUNCIL District no. 1 (BOSTON) THOMAS M. STEELE. District no. 2 (NEW YORK) WALTER E. FREW. District no. 3 (PHILADELPHIA) HOWARD A. LOEB. District no. 4 (CLEVELAND) H. C. MCELDOWNEY. District no. 5 (RICHMOND) HOWARD BRUCE. District no. 6 (ATLANTA) JOHN K. OTTLEY. District no. 7 (CHICAGO) MELVIN A. TRAYLOR, Vice President. 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) HENRY M. ROBINSON. WALTER LICHTENSTEIN, Secretary 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 F. H. Curtiss R. A. Young W. W. Paddock W. Willett. J. H. Case G. L. Harrison W. R. Burgess C. H. Coe.i New York . J. E. Crane R. M. Gidney.i A. W. Gilbart J. W. Jones.* E. R. Kenzel W. B. Matteson.* W. S. Logan J. M. Rice.* L. R. Rounds Allan Sproul.1 L. F. Sailer L. W. Knoke.* Philadelphia R. L. Austin G. W. Norris . W. H. Hutt C. A. McIIhenny. W. G. McCreedy.' Cleveland L. B. Williams E. R. Fancher -.1. M.J. Fleming H. F. Strater. F. J. Zurlinden Richmond W. W. Hoxton G. J. Seay C. A. Peple G. H. Keesee. R. H. Broaddus J. S. Walden, Jr.* Atlanta Oscar Newton W. S.Johns3 H. F. Conniff M. W. Bell. W. S. McLarin, Jr.» Chicago E. M. Stevens J. B. McDougal C. R. McKay W. H. Snyder* H. P. Preston W. C Baehman.1 J. H. Dillard 0. J. Netterstrom.* E. A. Delaney.i St. Louis J. S. Wood W. McC. Martin 0. M. Attebery S. F. Gilmore.* J. G. McConkey A. H. Haill.* F. N. Hall." G. 0. Hollocher.2 0. C. Phillips.* Minneapolis _ J. N. Peyton W. B. Geery Harry Yaeger H. I. Ziemer. H. I. Ziemer F. C. Dunlop.a Kansas City ... M. L. McClure G. H. Hamilton C. A. Worthington..__ J. W. Helm. J. W. Helm Dallas C. C. Walsh B. A. McKinney R. R. Gilbert Fred Harris^ R. B. Coleman W. 0. Ford.» San Francisco Isaac B. Newton J, U. Calkins W. A. Day W. M. Hale. Ira Clerk i Assistant deputy governor. • Controller. 3 Acting 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. R. M. O'Hara. Helena branch R. E. Towle. Cleveland: Kansas City: Cincinnati branch C. F. McCombs. Omaha branch L. H. Earhart. Pittsburgh branch J. C. Nevin. Denver branch J. E. Olson. Richmond: Oklahoma City branch.. C. E. Daniel. Baltimore branch Hugh Leach. Dallas: Charlotte branch W. T. Clements. El Paso branch J. L. Hermann. Atlanta: Houston branch W. D. Gentry. New Orleans branch... Marcus Walker. San Antonio branch M. Crump Jacksonville branch Hugh Foster. San Francisco: Birmingham branch. _. J. H. Frye. Los Angeles branch W. N. Ambrose. Nashville branch.. J. B. Fort, Jr. Portland branch R. B. West. Chicago: Salt Lake City branch.. W. L. Partner. Detroit branch W. R. Cation. Seattle branch __ C. R. Shaw. St. Louis: Spokane branch D. L. Davis. Louisville branch J. T. Moore. Memphis branch W. H. Glasgow. 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. 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 Pagt Review of the month—Recent banking developments 265 Annual report of the German Reichsbank 288-292 National summary of business conditions 275 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, etc 276-279 Member and nonmember bank credit: All banks in the United States 281 All member banks 280, 321 Weekly reporting member banks in 90 leading cities 282, 322 Brokers' loans 282 Acceptances and commercial paper 283 Discount rates and money rates 284, 325 Security prices, security issues, United States Government securities 285 Production, employment, car loadings, and commodity prices 286, 326-328 Merchandise exports and imports 287 Department stores—Indexes of sales and stocks 287 Freight-car loadings, by classes 287 Financial statistics for foreign countries: Gold reserves of central banks and governments 293 Gold production. 294 Gold movements 294-296 Government note issues and reserves 297 Bank for International Settlements 297 Central banks 298-300 Commercial banks 301 Discount rates of central banks 302 Money rates _ 302 Foreign exchange rates 303 Price movements: Security prices 304 Wholesale prices 304-305 Retail food prices and cost of living 305 Law department: Federal home loan banks as banks within the meaning of section 19 of the Federal Reserve Act 306 Changes in law relating to the Federal Reserve System made by the recent agricultural relief act (text of act of May 12, 1933) 306 Federal Reserve statistics by districts, etc.: Banking and financial statistics - 319-325 Industrial and commercial statistics 326-329 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 19 MAY 1933 No. 5 REVIEW OF THE MONTH licenses to reopen were approximately $300,- 000,000 in excess of legal requirements. Return of currency to the Federal Reserve Loans and investments of member banks in banks continued in April, though at a less rapid New York City showed an increase of $350,- rate. Total volume of currencv 000,000, the increase being in loans on securities ^ returned between March 4 and and in all other loans, as well as in holdings of May 10 was $1,595,000,000, of which $300,000,000 was in gold coin and MONEY IN CIRCULATION $470,000,000 in gold certificates. Practically WeeKlu Basis-- Wednesday Series MILLIONS OF DOLLARS MILLIONS OF DOLLARS all of the currency withdrawn by banks 7600 7600 between February 1 and March 4 for the 7400 7*400 purpose of increasing their vault cash was 7200 7200 returned to the Reserve banks by the second 7000 7000 week of May, while of the currency paid out to the public during that period about $250,000,- 6800 6Q00 000 was still outstanding. 6600 6600 The chart shows the total amount of currency outside the United States Treasury and the Federal Reserve banks since the beginning of 1930. It brings out the fact that the volume of currency, which had increased by about $1,000,000,000 in 1931, remained fairly con- stant in 1932. In 1933, beginning in February, there was a more rapid increase than at any pre- vious time, followed by an almost as rapid return 5000 after the banks were reopened early in March. 5000 Early in May, however, the amount of money 4800 4800 in circulation was still about $400,000,000 larger 4600 ^r^ 4600 than at the same season in 1932 and $1,200,- 4400 44-00 000,000 larger than two years ago. 4200 L 4200 Reserve funds derived by the member banks Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec in April and early May from the redeposit of Money outside Treasury and Federal Reserve banks currency with the Federal Reserve banks were United States Government obligations. De- used to reduce the banks' indebtedness by mand deposits of the New York banks increased $100,000,000, to liquidate $175,000,000 of by more than $500,000,000, and their balances maturing acceptances held by the Reserve held for correspondent banks by $200,000,000 banks, and to increase the member banks' re- during the period. serve balances by $170,000,000. Early in May Total reserves of the Federal Reserve banks the reserves of member banks that had received increased further in April and early May, and 265 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 266 FEDERAL RESERVE BULLETIN MAY 1933 this increase, together with the decline in Fed- wise, any transactions in foreign exchange, eral Reserve notes, was reflected in a rise of the transfers of credit from any banking institution within the United States or any place subject ratio of reserves to deposit and note liabilities of to the jurisdiction thereof to any foreign branch the 12 Federal Reserve banks combined to 64.8 or office of such banking institution or to any percent on May 10.