FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON SEPTEMBER, 1919 WASHINGTON GOVERNMENT PRINTING OFFICE 1919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD, EX OFFIOIO MEMBERS. W. P* G. HARDING, Governor. CARTER GLASS, ALBERT STEAUSS, Vice Governor, Secretary of the Treasury, Chairman. ADOLPH 0. MILLER. JOHN SXELTON WILLIAMS, CHARLES S. HAMLIN, Comptroller of the Currency,. GEORGE L. HARRISON, General Counsel. W. To CHAPMAN, Assistant Secretary, H. PARKER WILLIS, W. M, IMLAY, ^«cal il^cnf. Director, Division of Analysis and Research, M. JAOOBSON, Statistician* J. E. CRANE, Acting Director, Division of Foreign Exchange* 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... Chas. A. Morss Chas. E. Spencer, jr.. W. Willett. C. C. Bullen New York Pierre Jay Beni, Strong, ir R. H. Treman L. IL Ilendricks. J.IL Case L. F. Sailer. J. F. Curtis Philadelphia R. L. Austin E. P. Passmore Wm. II. Hutt, jr W. A. Dver. Cleveland D.C.Wills... E. R. Fancher M. J. Fleming1 H. G. Davis. Frank J. Zurlinden 1.. Richmond Caldwell Hardv George J, Seay C. A. Peple Geo. EC. Keesee. R. H. Broaddus Atlanta Joseph A. McCord M. B. Wellborn L. 0. Adelson.. M. W. Bell. Chicago Wml A. Heath J. B. McDougal C. R. McKay S. B. Cramer. B. G. McCloud1 St. Louis Wm. McC. Martin D.C. Biggs 0. M. Attebery J. W. White. Minneapolis John II. Rich Theodore Wold R. A. Young S. S. Cook, Kansas Citv Asa E. Ramsay J. Z. Miller, jr C. A. Worihington1.. J. W. Helm.3 Dallas....*... Wm. F. Ramsey R. L. YanZandt Lvnn P. Tallev. - Lvnn P. Talley. San Francisco John Perrin J. U. Calkins Wm. A. Dav.J Ira Clerk.3 " 1 Assistant to governor. 2 Acting cashier. « Assistant deputy governor. MANAGERS OP BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Manager. Federal Reserve Bank of— Manager. New York: St. Louis: Buffalo branch Rav M. Gidney. Louisville branch W. P. Kincheloe. Memphis branch J. J. Heflin. Cleveland: Little Rock branch A. F. Bailey. Cincinnati branch..... L. W. Manning. Pittsburgh branch Geo. Do Camp. Kansas City: Omaha branch 0. T. Eastman. Richmond: Denver branch C. A. Brukhardt, Baltimore branch.. Morton M. Prentis. Dallas: Atlanta: Ej Paso branch R. R. Gilbert. New Orleans branch Marcus Walker. Houston branch Sam R. Lawder. Jacksonville branch Geo. R. De Saussure. Birmingham branch.... A. E. Walker, San Francisco: Salt Lake Citv branch... C. II. Stewart. Chicago: Seattle branch C. J. Shepherd, Detroit branch.., It. B. Locke. Spokane branch C. A. McLean. Portland branch 0. L. Lamping. SUBSCRIPTION PRICE OF BULLETIN. ^ The FEDERAL RESERVE BULLETIN IS distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the BULLETIN to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of 82 per annum. Single copies will be sold at 20 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 SI per annum. No complete sets of the BULLETIN for 1915, 11916, or 1917 are available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS. Page. Review of the month 813 Business and financial conditions: Summary 822 Special reports by Federal Reserve Agents 827 Changes in the general price levels compared with the movement of gold, Federal Reserve Bank reserve, and Federal Reserve note circulation, 1914-1919 838 Banking and economic conditions in Italy, 1914-1919 840 Quantities and values of principal exports, 1914-1919 849 Official: Prohibitions relating to foreign exchange transactions 853 Foreign branches of American banks 854 State banks and trust companies admitted to the system 855 Banks granted authority to accept up to 100 per cent of capital and surplus 856 Charters issued to national banks 855 Fiduciary powers granted to national banks 856 Rulings of the Federal Reserve Board 858 Law Department: Amendments to Georgia banking laws 859 Miscellaneous: Changes in the German Reichsbank's gold reserve 847 Comparative statement of principal banks of issue 848 Acceptance liabilities of member banks 852 Crop statistics, by Federal Reserve districts 852 Commercial failures reported 856 Statistical: Wholesale prices in the United States 860 Discount and interest rates prevailing in various centers 864 Physical volume of trade 867 Gold settlement fund transactions, May 22-August 1 876 Debits to individual account, July-August 878 Discount and open-market operations of the Federal Reserve Banks 882 Operation of the Federal Reserve clearing system 886 Growth of the par list 886 Resources and liabilities of the Federal Reserve Banks 889 Federal Reserve note account 894 Condition of member banks in selected cities 896 Imports and exports of gold and silver 901 Estimated stock of money in the United States 902 Abstract of reports of condition of member State banks and trust companies 903 Discount rates approved by the Federal Reserve Board. 902 Diagrams: Note circulation in Italy, 1914-1919 844 Par point map 888 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BULLETIN VOL. 5 SEPTEMBER 1, 1919. No. 9 REVIEW OF THE MONTH. 3. The Secretary of the Treasury has au- In accordance with the general plan an- thorized the Federal Reserve Banks on and after Tuesday, September 2, to redeem in cash nounced by the Treasury about before maturity at the holder's option, at par The Treasury the end of Jul two series of and accrued interest to the date of such op- program. ?• . tional redemption, Treasury certificates of Ireasury certificates ot in- indebtedness of Series V J, dated April 10, debtedness were placed during the past month, 1919, and maturing September 9, 1919. on August 1 and 15, respectively. Both issues were oversubscribed, the first realizing High prices and the advancing cost of living have become the occasion of $533,801,500 and the second $532,152,000. Cost of living. , -, . , . ,, The certificates issued mature after five months, widespread anxiety m the i. e., in January, 1920. On August 12 a 20 United States, and recently have become the per cent installment on Victory loan subscrip- subject of legislative attention. The Presi- tions fell due and on the same date the Treas- dent in an address to Congress on August 8, ury redeemed the outstanding balance of 378 declared that "the prices the people of this millions of Treasury certificates issued on country are paying for everything that it is March 13 in anticipation of the Victory loan. necessary for them to use in order to live are Two other series of certificates, totaling about not justified by a shortage in supply, either 1,237 millions, issued in anticipation of this present or prospective.'' The Federal Re- loan are still outstanding and, unless previously serve Board in a letter of the same date to the called for redemption, are to be retired on Sep- Senate Committee on Finance and Banking tember 9 and October 7, when further install- (published in the August BULLETIN), rejected ments on the Victory loan are payable. The net the idea that "excessive" volume of currency result of these operations is an increase of the was the cause of prevalent high prices. This floating debt of the United States by about 688 is the view which has been consistently main- millions, which, according to previous announce- tained by the Board, the letter being merely a ment, will either be paid off on or prior to restatement with amplified detail of the posi- maturity or be funded by the issue of short- tion taken by the Board on previous occasion, term notes. notably in the October. 1918, BULLETIN (p. As the result of the successful placing of the 927), where the conclusions were expressed first two issues of loan certificates the Treasury that "the increase in the circulation of the announced on August 25 a slightly modified Federal Reserve note has been in the main in financial program for the immediate future, as response to actual needs, and that whatever follows: inilation of prices may be said to exist can not 1. There will be no fixed minimum amount for the issue of loan certificates dated Sep- properly be said to have been induced by tember 2 and maturing February 2 (Series C overissue of Federal Reserve notes." In its 1920). The issue will not remain open for any recent letter, particular occasion is taken by stated period, but will be closed without notice. the Board to point out "the difficulty, indeed Federal Reserve Banks will not assign quota the impossibility, of keeping in circulation an in respect to this issue to the banking institu- tions of their districts. excessive volume of Federal Reserve notes. 2. There will be no issue of loan certificates They are issued only as a need for them de- upon September 15. An issue or issues of tax velops, and as they become redundant in any certificates of longer maturity may be sub- locality they are returned to the Treasury at stituted. Washington, or to a Federal Reserve Bank for 813 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 814 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1919.