frb_091932

FEDERAL RESERVEBULLETIN

SEPTEMBER, 1932

ISSUED BY THE

FEDERAL RESERVE BOARDAT WASHINGTON

Recent Banking Developments

Annual Report of the Netherlands Bank

UNITED STATESGOVERNMENT PRINTING OFFICE

WASHINGTON : 1932

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD

Ex officio members:OGDEN L. MILLS,

JK Secretary of the Treasury, Chairman.J. W. POLE,

Comptroller of the Currency.

EUGENE MEYER, Governor.CHARLES S. HAMLIN.ADOLPH C. MILLER.GEORGE R. JAMES.WAYLAND W. MAGEE.

FLOYD R. HARRISON, Assistant to the Governor.CHESTER MORRILL, Secretary.

E. M. MCCLELLAND, Assistant Secretary.J. C. NOELL, Assistant Secretary and Fiscal Agent.WALTER WYATT, General Counsel.

LEO H. PAULGER, Chief, Division of Examinations.E. A. GOLDENWEISER, Director, Division of Research

and Statistics.CARL E. PARRY, Assistant Director, Division of Research

and Statistics.E. L. SMEAD, Chief, Division of Bank Operations.

District No.District No.District No.District No,District No.District No.District No.District No.District No.District No.District No.District No.

n

FEDERAL ADVISORY COUNCIL

1 (BOSTON) THOMAS M. STEELE.2 (NEW YORK) ROBERT H. TREMAN.3 (PHILADELPHIA) HOWARD A. LOEB.4 (CLEVELAND) J. A. HOUSE.5 (RICHMOND) HOWARD BRUCE.6 (ATLANTA) JOHN K. OTTLEY.7 (CHICAGO) , MELVIN A. TRAYLOR, Vice President.8 (ST. LOUIS) WALTER W. SMITH, President.9 (MINNEAPOLIS).. THEODORE WOLD.10 (KANSAS CITY) WALTER S. MCLUCAS.11 (DALLAS) J. H. FROST.12 (SAN FRANCISCO) HENRY M. ROBINSON.

WALTER LICHTENSTEIN, Secretary


OFFICERS OF FEDERAL RESERVE BANKS

Federal Reserve Bankof Chairman Governor Deputy governor Cashier

BostonNew York.

Frederic H. Curtiss.J. H. Case

Roy A. YoungGeo. L. Harrison

Philadelphia.ClevelandRichmondAtlantaChicago

St. Louis..

R. L. AustinGeorge DeCampWm. W. HoxtonOscar Newton.Eugene M. Stevens.

John S. Wood

Minneapolis...Kansas City...Dallas _...San Francisco..

John R. MitchellM. L.McClureC.C.WalshIsaac B. Newton..

Geo. W. NorrisE. R. Fancher _.George J. SeayEugene R. BlackJ. B. McDougal

Wm. MeC. Martin...

W. B. Geery _.Geo. H. Hamilton..B. A. McKinneyJno. U. Calkins

W. W. PaddockW. R. BurgessJ. E. CraneA. W. GilbartE. R. KernelWalters. LoganL. R. Round?L. F. Sailer...Wm. H. HuttM. J. FlemingFrank J. Zurlinden..C. A. PepleR. II. BroaddusW.S.JohnsII. F. ConniffC. R. McKayJohn H. Blair.. _ _J. H. DillardO.M. AtteberyJ. G. McConkey..-

Harry YaegerH. I. Ziemer _.C. A. Worthington-J. W. HelmR.R.GilbertR. B. ColemanWm. A. DayIra Clerk

W. Willett.C. H. Coe.iRay M. Gidney.1J. W. Jones.iW. B. Matteson.iJ.M. Rice.iAllan Sproul.1L. Werner Knoke.iC. A.McIlhenny.W. G. McCreedy.H. F. Strater.Geo. H. Keesee.JohnS. Waldenjr.aM. W. Bell.W. S.McLarinJr.iW. C. Bachman.iD. A. Jones.i0. J. Netterstrom.iE. A. Delaney.iS. F. Gilmore.*A. H. Haill.2F. N. Hall.G.O.Hollocher.J0. C. Phillips.*H. I. Ziemer.Frank C. Dunlop.*J. W. Helm.Fred Harris.W.O.Ford.iWm. M.Hale

* Assistant deputy governor. * Controller.

MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS

Federal Reserve Bank of

New York:Buffalo Branch _.

Cleveland:Cincinnati branchPittsburgh branch

Richmond:Baltimore branchCharlotte branch

Atlanta:New Orleans branchJacksonville branchBirmingham branchNashville branch__

Chicago:Detroit branch

St. Louis:Louisville branch _Memphis branch __Little Rock branch

Managing director

R.M. O'Hara.C. F.McCombs.J. C. Nevin.Hugh Leach.W. T. Clements.Marcus Walker.Hugh Foster.John H. Frye.J. B. Fort, jr.W. R. Cation.John T. Moore.W. H. Glasgow.A. F. Bailey.

Federal Reserve Bank of

Minneapolis:Helena branch

Kansas City:Omaha branchDenver branchOklahoma City branch.

Dallas:El Paso branchHouston branchSan Antonio branch

San Francisco:Los Angeles branch....Portland branchSalt Lake City branch.Seattle branchSpokane branch.

Managing direetor

R. E. Towle.L. H. Earhart.J. E. Olson.C. E. Daniel.J. L. Hermann.W. D. Gentry.M. Crump.W. N. Ambrose.R. B. West.W. L. Partner.C. R. Shaw.D.L. Davis

SUBSCRIPTION PRICE OF BULLETINThe 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 theboard. The BULLETIN will be sent to all member banks without charge. To others the sub-scription price, which covers the cost of paper and printing, is $2. Single copies will be soldat 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60;single copies, 25 cents.

in


TABLE OF CONTENTS

PagReview of the monthRecent banking developments 559Changes in foreign central bank discount rates 562Condition of all member banks on June 30, 1932 (from Member Bank Call Report No. 55) 609-612Annual report of the Netherlands Bank 578National summary of business conditions 563

Financial, industrial, and commercial statistics:Reserve bank credit, gold stock, money in circulation, etc 564-567Member and nonmember bank credit

All banks in the United States 570All member banks 569-570, 605Weekly reporting member banks in leading cities 571, 606

Brokers' loans 571Acceptances and commercial paper 572Discount rates and money rates 574, 607Bank suspensions and banks reopened 573, 613-615Member bank holdings of eligible assets (Government securities and eligible paper) 573Security prices, security issues, United States Government securities __. 575Production, employment, car loadings, and commodity prices 576, 616-618Merchandise exports and imports 577Department storesIndexes of sales and stocks 577Freight-car loadings, by classes 577

Financial statistics for foreign countries:Gold reserves of central banks and governments 585Gold production 586Gold movements 586-588Government note issues and reserves 589Bank for International Settlements 589Central banks 590-592Commercial banks 593Discount rates of central banks 594Money rates 594Foreign exchange rates _ 595Price movements

Security prices 596Wholesale prices 596, 597Retail food prices and cost of living 597

Law department:Changes in law and regulations with regard to loans on notes secured by adjusted-service certificates. 598

Federal reserve statistics by districts, etc.:Banking and financial statistics 603-608Industrial and commercial statistics 616-619July crop report, by Federal reserve districts 620

IV


FEDERAL RESERVE BULLETINVOL. 18 SEPTEMBER, 1932 No. 9

REVIEWiOF THE MONTHThe volume of reserve bank credit outstand-

ing has declined during recent weeks from theFactors in h i h l e v e l o f JalJ> chiefly in con-

sequence of further increase inthe monetary gold stock of the

country and a return of currency from circula-tion. Funds were received by member banksfrom these two sources, and from an increase

RESERVE BANK CREDITor DOOMS AND PRINCIPAL FACTORS IN CHANGES MILLIONS OF D

Federal reserveposition

MIooo

5500

5000

4500

4000

1500

1000

500

1927 1928 1929 1930 1931Wednesday series

1932

in the net volume of currency issued by theTreasury, largely in the form of new national-bank notes. They were thus enabled to reducethe volume of their borrowing at the Federalreserve banks to the lowest level of the currentyear and at the same time to increase theirreserve balances by about $100,000,000. Themember bank reserve balances, at $2,146,-000,000 on August 31, were consequently at the

highest level of the last three months, andincluded more than $300,000,000 of reservesin excess of legal requirements.

The chart shows the course of reserve bankcredit and principal factors in changes duringthe last six years* The table gives theseitems for selected recent dates. The dates, inaddition to August 31, are July 20when re-serve bank credit was at its highest level inmore than ten years; July 6when money incirculation was at the highest level ever reachedand member bank reserve balances were at thelowest level since the first week in April; andJune 15when the recent large outflow of goldcame to an end.RESERVE BANK CREDIT AND PRINCIPAL FACTORS IN

CHANGES

[In millions of dollars]

Aug. 31,1932

Reserve bank creditBills discounted

Monetary gold stockTreasury currency adjusted.Money in circulation 1Member bank reserve balances..

July 20,1932

2,331433

1,8015,6912,146

2,438538

3,9521,7705,7352,036

July 6,1932

June 15,1932

2,408500

3,9221,7935,775

2,270496

3,9091,8325,4672,101

Gold stock

* Money outside Treasury and Federal reserve banks.

The recent inflow of gold from abroad, whichbegan at the middle of June, resulted in an in-

crease in the country's stock ofmonetary gold, between June 15

and August 31, of about $175,000,000. Thisincrease brought the gold stock to $4,086,000,-000. This is about the same level as in thesecond half of 1928 and the first quarter of 1929before either the recent financial crisis or theprevailing business depression had begun toshow itself.

As compared with the middle of 1928 the cen-tral gold reserves of the principal countries ofthe world outside of the United States have in-creased in the aggregate by about $1,800,000,000,

559


560 FEDERAL RESERVE BULLETIN SEPTEMBER, 1932

or 30 per cent, chiefly in consequence of a largeoutput from the world's gold mines and the re-lease of gold from private holdings in Australia,China, India, and Russia. During the fouryears from June, 1928, to June, 1932, moreover,the excess reserves of foreign countries, over andabove legal reserve requirements, increased inthe aggregate by not less than $1,500,000,000,and by more than this amount if account betaken of the position of the countries (Argentina,England, Japan, and Netherlands) in whichlegal or customary requirements have been al-tered during the 4-year period.

The recent increase of $175,000,000 in themonetary gold stock of the United States rep-resented chiefly the release in this country ofgold previously earmarked for foreign corre-spondents, but reflected in addition imports ofabout $50,000,000, of which $12,000,000 werefrom Canada, $12,000,000 from China, andsmaller amounts from a number of othercountries including England, Japan, Australia,and Mexico. There were substantial goldexports during the 10-week period, especiallyto France, Switzerland, and Belgium, but thesewere more than offset in the aggregate by thegold released from earmark during the period.

The return of about $85,000,000 of currencyfrom circulation between July 6 and August 31

was the first substantial move-movement ment in this direction since

last March. It represented apost-holiday return of $40,000,000 betweenJuly 6 and July 20 which was somewhat lessthan seasonal in amount and a further returnof $45,000,000 between July 20 and August31a period which has usually been character-ized in recent years by a substantial seasonalincrease in the circulation. The figures indi-cate, therefore, that there was during thisperiod a substantial release of currency fromhoards, apparently in reflection of the recentsubsidence of banking disturbances and theincreasing activity of the securities and com-modities markets. While part of the currencythus released may have gone from inactive intoactive circulation, the rest was returned directly

or indirectly to the member banks which inturn forwarded it for credit to the Federalreserve banks, and this was a factor, along withthe increase in gold stock, both in the reductionduring the period in the volume of reserve bankcredit oustanding and also in the growth ofmember bank reserve balances.

Another influence operating in the samedirection between July 20 and August 31 wasthe increase in the net volume of Treasury cur-rency outstanding. This reflected chiefly theissue of new national-bank notes under theprovision of the Federal home loan bank act,effective July 22, 1932, which extends the cir-culation privilege to a substantial volume ofadditional United States Government bonds.The total issue of new national-bank notesagainst bonds during the 6-week period ap-proximated $53,000,000. While the issue ofthese notes did not result, in the prevailing cir-cumstances, in increasing the total volume ofmoney in circulation, coming as it did at atime when the circulation declined by $45,-000,000, it did operate to provide the issuingbanks, and through them the money market ingeneral, with funds that could be used to reduceborrowings at the reserve banksand thus toreduce the volume of reserve bank creditorto increase member bank reserve balances, orboth. The issue of $53,000,000 additionalnational-bank notes displaced an equal amountof other forms of currency; and since at thesame time the aggregate demand for currencydeclined by $45,000,000, the total decline inthe circulation of currency other than national-bank notes amounted to about $100,000,000.About one-half of this decrease was in Federalreserve notes.

The volume of United States Governmentsecurities employed as collateral for Federal

reserve notes as provided inCollateral for

section 3 of the Glass-SteagallFederal reserve . _&,notes Act was materially reduced by

the developments of the lasttwo months. Changes in the collateral heldby Federal reserve agents between July 6,1932, when the volume of United States Gov-


SEPTEMBER, 1932 FEDERAL RESERVE BULLETIN 561

ernment obligations pledged as collateral forFederal reserve notes reached its maximum,and August 31 are shown on the accompanyingtable. Duringt his period the volume of se-curities pledged as collateral decreased by$104,000,000. Of this amount $1,000,000 re-flected technical developments, namely, a de-crease of $13,000,000 in the excess collateralheld by agents which was offset to the extentof $12,000,000 by an increase in the volume ofnotes issued to Federal reserve banks and heldby of them in their own vaults. The remain-

F E D E R A L R E S E R V E N O T E STATEMENT[Amounts in millions of dollars]

Federal reserve notes:Issued to Federal reserve banks by

Federal reserve agents _.Held by Federal reserve banks

In actual circulation.

Collateral held by agents:GoldEligible paperU. S. Government securities

Total collateralExcess collateral - -

Aug. 31,1932

3,052238

2,814

2,081417578

3,07624

July 6,1932

3,094226

2,868

1,927522682

3,13137

Change

-42+12-54

+154-105-104

- 5 5- 1 3

der, amounting to $103,000,000, reflected thereturn of $54,000,000 of Federal reserve notesfrom circulation and a net increase of $49,-000,000 in gold and eligible paper, the form ofcollateral exclusively available as cover forFederal reserve notes prior to the enactment ofthe Glass-Steagall Act. Gold collateral aloneused as cover for Federal reserve notes in-creased by $154,000,000, while eligible paper,representing acceptances and bills discountedheld by the Federal reserve banks, decreasedby $105,000,000.

As in the preceding month, gold movementsin Europe during the past month were rela-

tively small. Further addi-t i o n s w e r e m a d e t o t h e

g l dreserves of central banks in

England and Netherlands, and the gold stockof Germany showed the first monthly increasesince May, 1931. Gold holdings of France,

after more than a year of almost uninterruptedgrowth, declined somewhat.GOLD R E S E R V E S OF SELECTED C E N T R A L B A N K S


Central bank of

EnglandFranceGermany.. .ItalyBelgiumNetherlands.Switzerland.

Date,1932

Aug. 24Aug. 19Aug. 23Aug. 20Aug. 18Aug. 22Aug. 23

Gold re-serves

6753,222

183'*>302

364414509

Change from

Monthbefore

+10- 4+3+3+3+8

Year be-fore

+25+926-142+19

+144+154+230

v Preliminary.

Gold reserves of the Bank of England in thefive weeks ending August 25 increased by

2,144,000 ($10,434,000). Dur-ing the same period there was adecline of 3,015,000 in the

volume of "other securities" held by the bank,in which are included the bank's holdings of

B A N K OF ENGLAND

[In thousands of pounds sterling]

Bank of Eng-land

Gold Discounts and advancesGovernment securitiesOther securitiesBankers' depositsPublic depositsOther depositsNotes in circulation

Aug. 24,1932

138, 72813, 266

320, 06641, 90279, 94622,20334,429

363, 882

Change from

July 20,1932

+2,144-1,041+ 1 , 560-3,015-8,078+8, 824

+702-1,877

Aug. 26,1931

+5,387+3, 970+1,089

+11, 736+26,353

-4,120-14, 279+13,571

foreign exchange. Public deposits were in-creased somewhat during the month throughthe transfer of funds from bankers' balances.

The British Government has made publicthe status of its program for converting the 5per cent war loan, 1929-1947, of which about2,080,000,000 is outstanding according to lat-est available returns. Last June 30 it was an-nounced that the Government would redeemthe loan at par this coming December 1. Hold-ers of the loan were permitted to continue theirholdings with a reduction in the rate of interest



from 5 to 3y2 per cent and, if the acceptance ofcontinuance were made not later than July 31,with a cash bonus of 1 per cent. The BritishTreasury stated on August 15 that applicationsfor the continuance of about 1,850,000,000with the benefit of the cash bonus had been re-ceived, while applications for redemption ap-proximated 48,000,000. That portion forwhich no notification of either redemption orcontinuance is given before the end of Septem-ber will be continued on the 3H per cent basis.

The Bank of France in addition to losing108,000,000 francs ($4,238,000) of gold in thefour weeks ending August 19 also lost 919,000,-

000 francs of foreign exchange.In obtaining this gold and

exchange the market utilized notes returningfrom circulation and made drafts upon " otherdeposits," in which the balances of the Frenchcommercial banks are included. These de-posits, which have been at a high level for thepast year, have recently been declining alongwith the bank's holdings of gold and foreign

BANK OF FRANCE

[In millions of francs]

Bank of France

Gold...Foreign exchangeDomestic discounts and advances.Government depositsOther depositsNotes in circulation

Aug. 19,1932

82, 2025, 3975,7874,32322, 55580,127

Change from

July 22,1932

-108-919-146+161-662-675

Aug. 21,1931

+23, 641-22, 755-1,881-4, 977+4, 385+2, 3C0

exchange. The small volume to which foreignbalances of the French commercial banks havebeen reduced indicates that any increase in thedemand for exchange arising either out of theimprovement in financial conditions abroad orthe persistence of the excess of merchandiseimports into the country would have to be metby purchases from the Bank of France.

At the Reichsbank gold and foreign-exchangereserves in the month ending August 23 in-

creased by 20,000,000 reichs-Reichsbank marks ($4,718,000). Although

until now the bank's reserveshave shown monthly declines since May, 1931,losses since April have been in connection with

REICHSBANK[In millions of reichsmarks]

GoldForeign-exchange reservesDiscounts and advancesDepositsNotes in circulation

Aug. 23,1932

768144

2,876353

3,617

Change from

July 23,1932

+14+6

-153- 6

-105

Aug. 22,1931

-598-170-175-180-433

capital repayments abroad. Funds from thesale of gold and exchange to the bank, and alsofrom the return of currency from circulation,were utilized by the market in repaying dis-counts and advances.

Annual Report of the Federal_Reserve BoardThe complete edition of the annual report of

the Federal Reserve Board, covering operationsfor the year 1931, is now available. It con-tains, in addition to the text of the report,statistics relating to banking and business con-ditions generally. It also gives the recom-mendations made by the Federal AdvisoryCouncil during 1931.

Changes in Foreign CentraPBank Discount RatesThe following changes in discount rates dur-

ing the month ended September 1 have beenreported by central banks in foreign countries:

Austrian National BankAugust 24, from 7 to 6per cent.

Central Bank of ChileAugust 22, from 5^ to 4%per cent.

Bank of GreeceAugust 8, from 11 to 10 per cent.Bank of JapanAugust 18, from 5.11 to 4.38 per

cent.Bank of NorwaySeptember 1, from 4} to 4 per

cent.Bank of SwedenSeptember 1, from 4 to 3% per

cent.



NATIONAL SUMMARY OF BUSINESS CONDITIONS[Compiled August 23 and released for publication August 25]

Volume of industrial output declined season-ally from June to July, while factory employ-ment and pay rolls decreased by more than theusual seasonal amount. In July the generallevel of wholesale prices was about 1 per centhigher than in June, and in the first half ofAugust prices of many leading commoditiesadvanced considerably. Reserve bank creditdeclined somewhat in the four weeks endingAugust 17, reflecting chiefly a substantialgrowth in the country's stock of monetary gold.

Production and employment.Industrial pro-duction declined by about the usual seasonalamount in July, and the board's index, which isadjusted to allow for the usual seasonal varia-tions, remained unchanged at 59 per cent of the1923-1925 average. Activity decreased season-ally in the steel industry; by slightly more thanthe usual seasonal amount in the lumber,cement, newsprint, and meat-packing indus-tries; and by substantially more than theseasonal amount in the automobile and leadindustries. Output of shoes, which ordi-narily increases in July, declined. At woolenmills, activity increased by a substantial amount,and at silk mills there was a seasonal increasein production. Activity at cotton mills de-creased, as is usual in July, while sales of cottoncloth by manufacturers increased considerably.Output of coal increased from the low levelprevailing in June.

Reports on the volume of factory employ-ment and pay rolls showed substantial declinesfrom the middle of June to the middle of July.In the machinery, women's clothing, and ho-siery industries, and at railroad repair shops thenumber employed decreased by considerablymore than the usual seasonal amount, and atshoe factories the increase reported was smallerthan usual. In the woolen goods industry asubstantial increase in employment was re-ported.

Value of building contracts awarded, as re-ported by the F. W. Dodge Corporation, con-tinued at a low level during July and the firsthalf of August.

Prospects for many leading crops, includingcorn, spring wheat, potatoes, and tobacco, werereduced somewhat during July, according tothe Department of Agriculture. The estimatedtotal wheat crop, based on August 1 conditions,is 723,000,000 bushels, a decrease of about175,000,000 bushels from last year's large crop,reflecting]a reduction of 350,000,000 bushels in

the winter wheat crop, offset in part by an esti-mated increase of 175,000,000 in the springwheat crop. The first official cotton estimate,as of August 1, was 11,300,000 bales, as com-pared with crops of 17,100,000 last season and13,900,000 the year before. The indicated pro-duction of corn is 2,820,000,000 bushels, sub-stantially larger than the crops of the last twoseasons and slightly larger than the 5-yearaverage.

Distribution.Volume of freight traffic de-creased somewhat from June to July, and valueof department-store sales was substantiallyreduced.

Wholesale prices.The general level ofwholesale prices, as measured by the monthlyindex of the Bureau of Labor Statistics, ad-vanced from 63.9 per cent of the 1926 averagein June to 64.5 per cent in July. Between themiddle of July and the third week of Augustprices of livestock and meats, which had pre-viously advanced considerably, declined some-what, while price increases were reported formany other leading commodities, includingwheat, textile raw materials and finished prod-ucts, nonferrous metals, hides, sugar, coffee,and rubber.

Bank credit.The total volume of reservebank credit outstanding, which had increasedby $850,000,000 between the end of March andthe third week of July, declined by $95,000,000in the four weeks to August 17, and in the sameperiod member banks increased their reservebalances by $45,000,000. These changes re-flected chiefly the addition of $95,000,000 tothe country's stock of monetary gold and aninflow to the banks of $30,000,000 in currency.

Total loans and investments of reportingmember banks in leading cities were $250,000,-000 larger on August 17 than four weeks ear-lier. Total loans of these banks continued todecline throughout the period, while theirinvestments increased substantially, reflectingan increase in holdings of United States Gov-ernment securities in connection with Treasuryfinancing operations. Time deposits increasedby $95,000,000 and net demand deposits by$85,000,000.

Money rates in the open market remained atlow levels. Successive reductions brought theprevailing rates on prime commercial paper toa range of 2-2}{ per cent in the first part ofAugust.



MILLIONS OF DOLLARS6000

5500

5000

4500

4000

2500

2000

1500

1000

RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGESMILLIONS OF DOLLARS

6000

5500

5000

4500

4000

= = ^ 2 5 0 0

Member BankReserve Balances

2000

1500

1000

1927 1928 1929 1930 1931 1932Based on weekly averages of daily figures; latest figures are for week ending Aug. 27



FEDERAL RESERVE BANK CREDIT

RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES[In millions of dollars]

Month or week

Averages of daily figures

Reserve bank credit outstanding

Bills dis-counted

Billsbought

UnitedStates

Govern-ment

securities

Otherreservebankcredit

Total Monetarygold stock

Factors of decrease

Treasurycurrencyadjusted

Factors of increase

Moneyin circu-

lation

Memberbank

reservebalances

Non-memberdeposits,

etc.

Unex-pendedcapitalfunds

1931MarchAprilM a y . - . -June - .JulyAugustSeptemberOctober. _.NovemberDecember

1932JanuaryFebruary _.MarchApril -M a y . .JuneJulyAugust

Week ending (Saturday)Apr. 2Apr. 9Apr. 16 - -Apr. 23 _.Apr. 30

May 7May 14May 21May 28

June 4June 11June 18June 25

July 2July 9July 16July 23July 30

Aug.6Aug. 13Aug. 20Aug. 27

176155163188169222280613695774

848714605486495523451

12317314412179135259692560340

2211511055241506037

604600599610674712736733727777

759743809

1,0141,4131,6971,8181,850

921952926945954

1,1071,3132,0882, 0351, 950

1, 8651,7851,6521,6941,9592,2622,4222, 353

4,6824,7114,7674,8654,9584,9754,9484,4474,3634,450

4,4524,3844,3724,3814,2733,9563.9414,031

1,7781,7701,7831,7591,7841,7641,7681,7681,7661,782

1,7731,7871,7921,7891,7881,7871,7801,796

4,5904,6474,6794,7504,8364,9475,1335,4785,5185,611

5,6455,6275,5315,4525,4565,5305,7515,720

2,3862,3762,3872,4042,4072,3452,3332,2562,1182,069

1,9791,9071,8991,9962,1382,0622,0032,073

651647637579543

514480474477496506496491

484509521536531

494458443432

854882957

1,0771,186

1,2841,3721,4381,504

1,5631,6381,7001,746

1,7911,7931,8211,8311,839

1.8461,8511,8511,851

1,5951,6091,6701,7291,794

1,8641,9161,9712,034

2,1172,1992,2762,313

2,3592,4042,4282,4392,430

2,3952,3632,3462,330

4,3904,3924,3814,3764,370

4,3504,3164,2744,204

4,1073,9893,9223,916

3,9193,9203,9323,952

3,9874,0024,0404,060

1,7891,7901,7881,7861,784

1,7961,7741,7901,786

1,7971,7861,8001,769

1,8001,7951,7651,7751,774

1,7641,7931,8031,814

5,4695,4755,4505,4425,428

5,4655,4575,4595,439

5,4775,4735,4855,556

5,7035,7855,7455,7515,718

5,7385,7255,7255,706

1,9091,9161,9752,0222,095

2,1152,1252,1522,164

2,1072,0932,0922,032

1,9791,9461,9912,0252,057

2,0142,0402,0782,122

2427283583187199208171144

11373376377654640

381383382380370367364361357358

353349349353349348343347

351350351354352

351350350349

349348347350

346345344343343

345346345346

End of month series

Mar.31

Apr.30

M a y June30

July Aug.

Wednesday series

July27

Aug. Aug.10

Aug.17

Aug. Aug.31

34

1,85212

2,3314,0871,801

5,6922,146

381

Bills discountedBills boughtUnited States Government se-

curitiesOther reserve bank creditTotal reserve bank creditMonetary gold stockTreasury currency adjustedMoney in circulationMember bank reserve balances.Nonmember deposits, etcUnexpended capital funds

872

1,5974,390

5,4591,924

5935J

556

1, 22818

1,8504,3671,803

5,4642,124

79353

49036

1,54921

2,0964,1521,802

5,4802,113109

44067

1,784

2,3103,9191,8""

5,695

42346

53843

1,841

2,4393,9741,758

5,7262,052

49344

43334

1,85212

2,3314, 0871,801

5, 6922,146

36345

Bills discountedBills boughtUnited States Government se-

curitiesOther reserve bank creditTotal reserve bank creditMonetary gold stock_Treasury currency adjustedMoney in circulationMember bank reserve balances-Unexpended capital funds, non-

member bank deposits, etc

52540

1,84116

2,4223,9601,771

5,6902,072

391

48741

14

2,3883,9871,757

5,7282,012

391

39

1,85115

2,3574,0051,799

5,7072,062

392

44336

1,85114

2,3444,0461,788

5,7062,080

392

42735

1,851

2,3214,0641,819

5,6842,142

378

v Preliminary.Back figuresBee Annual Report for 1931 (Tables 1-6).



RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS IN DETAIL; ALSO FEDERAL RESERVENOTE STATEMENT

[In thousands of dollars]

Aug. 31,1932 uly 31,1932 Aug. 31, 1931

RESOURCESGold with Federal reserve agentsGold redemption fund with United States Treasury

Gold held exclusively against Federal reserve notes..Gold settlement fund with Federal Reserve BoardGold and gold certificates held by banks

Total gold reservesReserves other than gold

Total reservesNonreserve cashBills discounted:

For member banks _For intermediate credit banksFor nonmember banks (secured by adjusted service certificates).

Total bills discountedBills bought:

Payable in dollarsBought outrightUnder resale agreement _

Payable in foreign currenciesTotal bills bought

United States Government securities:Bought outright-Under resale agreement

Total United States Government securitiesOther reserve bank credit:

Federal intermediate credit bank debenturesFederal land bank bondsMunicipal warrants..Foreign loans on gold _Due from foreign banks .Reserve bank float (uncollected items in excess of deferred availability items) _

Total reserve bank credit outstanding..Federal reserve notes of other reserve banks _Uncollected items not included in floatBank premises All other resources __

Total resources..Federal reserve notes:

Held by other Federal reserve banks.Outside Federal reserve banks

LIABILITIES

Total notes in circulation.Deposits:

Member bankreserve account .GovernmentForeign bank__Other deposits

Total deposits _Deferred availability itemsCapital paid in _Surplus ___All other liabilities

Total liabilities __ _Contingent liability on bills purchased for foreign correspondents

FEDERAL RESERVE NOTE STATEMENTFederal reserve notes:

Issued to Federal reserve banks by Federal reserve agentsHeld by Federal reserve banks i

In actual circulation.Collateral held by agents as security for notes issued to banks:

Gold. _Eligible paperUnited States Government securities

Total collateral..

2,081, 76157, 668

1,969,15262,944

2,139,429273,486360,046

2,032,096242,370360,945

2, 772,961206,702

2,635,411200,732

2,979,66375,119

2,836,14370,072

432, 5908086

537,450605163

432, 756 538, 218

3,264

~30~834"

7,4454,840

30,645

34,098 42,930

1,838,81512,900

1,828,82812,500

1,851, 715 1,841,328

5,915 5,957

2,6683,476

2,8877,621

2,330,628 2,438,941

15,082308,796

58,12147.613

14,939297,61358,11948,439

5,815, 022 5, 764, 266

15,0822,798, 938

14,9392,843,970

2,814,020 2,858,909

2,146,18359,42914,18721,485

2,051, 50557,3678,922

39,7232,241,284

308, 796153,099259, 42138,402

2,157,517297,613153,738259,42137,068

5,815, 02249,043

5,764,26659,498

3, 051,999237, 979

3,079,771220,862

2,814,020 2,858,909

2,081, 761416, 786578,100

1,969,152524,874611,400

3,076,647 3,105,426

2,153,91329,889

2,183,802439,052832,838

3,455,692163,141

3,618,83371, 228

254,580

122

254,702

50,95119,187

145,215

215, 353

727,873

727,873

5,900500

5218,25023,7829,063

1,255,475

14,335356,728

59,08433, 536

5,409, 219

14,3351,948, 370

1,962, 705

2,373,00170,131

162, 20526,996

2, 632,333356, 728167,084274,636

15, 7335,409, 219

227,988

2,343,317380,612

1,962,705

2,153,913316,536

2,470,449

i Excludes "Federal reserve notes of other Federal reserve banks" which are consequently included in actual circulation


SEPTEMBER, 1932 FEDERAL RESERVE BULLETIN 567ANALYSIS OF CHANGES IN MONETARY GOLD

STOCK[In millions of dollars]

Month

1929 FebruaryMarch.. __ _AprilMayJuneJulyAugustSeptemberOctober . .NovemberDecember ._

Total (12 mos.)-1930J anuary

February . ,MarchApril -M a yJune _JulyAugust.SeptemberOctoberNovemberDecember...

Total (12 mos.)--1931January

February __ _MarchAprilMayJuneJulyAugustSeptember --OctoberNovemberDecember

Total (12 mos.)-1932January.. __

FebruaryMarch..AprilM a yJuneJulyAugust

Total (8 mos.) .

Goldstockat end

ofmonth

4,1534,1884,2604,3014,3244,3414,3604,3724,3864,3674,284

4,2914,3534,4234,4914,5174,5354,5174,5014,5114,5354,5714,593

4,6434,6654,6974,7264,7984,9564,9494,9954,7414,2924,4144,460

4,4164,3544,3904,3674,1523,9193,9744,087

Increasein stockduringmonth

26.434.472.440.623.416.318.912.114.4

-19 .2-82 .9142.5

6.861.970.268.525.917.6

-18.4-15 .5

10.223.336.822.1

309.649.422.032.028.772.4

158.0- 6 . 645.7

-254.3-448.4

122.045.8

-133.4-44.2-62 .3

36.023.1

214.1233.9

55.8112.3

-373. 4

Analysis of changes

Net goldimport

25.524.823.123.630.234.718.417.617.5

-23 .2-64 .4

175.14.0

60.055.565.723.513.9

-19 .6-19 .6

2.526.435.232.7

280.134.416.125.649.549.663.819.557.520.6

-337. 789.456.9

145.3-73 .0-90 .6-24 .7-30 .2

195.5r 206.0

- 7 . 14.4

-622.8

Net re-lease

from ear-mark i

0.07.5

48.616.1

- 7 . 5- 2 2 . 0- 1 . 0- 6 . 64.5

1.0-22 .0-55.4

0.50.0

15.00.52.02.0

- 3 . 00.04.0

6.1- 2 . 1

-15 .2- 2 . 4

11.92.53.0

7.54.0

92.3-29 .7-16 .0

-279.1107.6

28.3-22 .9

-320. 825.426.458.34.0

-22 .128.8

56.2100.5219.8

Domes-tic pro-duction,

etc.1

0.92.10.80.90.73.61.51.11.43.03.5

22.82.31.9

- 0 . 32.30.51.74.34.23.73.13.84.5

31.9

3.13.33.3

-13 .318.81.93.64.24.2

- 3 . 14.2

11.942.1

3.41.92.43.23.6

'0 . 96.77.5

29.5

* Gold released from earmark at Federal reserve banks less gold placedunder earmark.

* This figure, derived from preceding columns, represents the excess ofdomestic production over nonmonetary consumption of goldchieflyconsumption in the arts. In any given month, however, it may be pre-dominantly affected by the fact that on the final day of the month (a)gold bullion or foreign gold coin recently imported may not yet havereached a reserve bank or the Treasury, and (6) gold bullion recentlywithdrawn from stock for export may not yet have been actually ex-ported. The figures are subject to certain unavoidable inaccuraciesin omcial reports of gold imports and exports.

* Preliminary figures. r Revised.

GOLD MOVEMENTS TO AND FROM UNITEDSTATES


From or to

Belgium _.England _._France. _.Germany.NetherlandsPortugalSwitzerlandCanadaCentral America _MexicoArgentinaColombiaEcuadorPeruUruguayVenezuelaAustraliaBritish India _China and Hong

KongDutch East Indies.JapanPhilippine Islands.All other countries1

Total

1932

August(preliminary)Im-

ports

1,0216,130

4,3471,842

1,0371,799

5654,744

916

-22,401

Exports

18,050

218, 050

July

Im-ports

1,480

3,07185

1 2841393

137129

1,148240

3,524262

4,197338333

16, 334

Ex-ports

7521, 513

2251

1,660

23, 474

January-July

Im-ports

2,2028

61

'40,362825

12, 30912, 9502,980

6762,6383,000

9204,8007,737

18, 5172,419

43, 2342,6205,926

164,184

Ex-ports

83, 60215,132

440,19213, 738

115, 2772,386

118, 516127

3320

1,660126

232

791, 312

1 Includes all movements of unreported origin or destination.2 At New Yorkimports, $11,511,000; exports, $18,050,000. Elsewhere,

imports, $10,890,000.r Revised figure for imports from Canada in June, $5,449,000.

KINDS OF MONEY IN CIRCULATION[Money outside Treasury and Federal reserve banks. In millions of

dollars]

Kind of money

Gold coin .Gold certificatesFederal reserve notes _Treasury currency:l

Standard silver dollarsSilver certificatesTreasury notes of 1890Subsidiary silverMinor coinUnited States notesFederal reserve bank notesNational bank notes

Tota JTreasury currencyTotal money in circulation

1932

Aug. 31 P

449669

2,793

30350

1255113285

3744

1,7815,692

July 31

454694

2,838

30351

1254113289

3700

1,7405, 726

1931

Aug. 31

363989

1,947

34380

1271117301

3646

1,7535.052

1 For explanation of the term "Treasury currency" see BULLETIN for,

July, 1929, p. 432. Preliminary.



MEMBER BANK RESERVE BALANCES


Month or week

Averages of daily figures

Reserves held

Totalallmember

banksNew York

City iOther

reservecities

"Country'banks

Excess reserves

Totalallmember

banksNew York

City iOther

reservecities

"Country"banks

1931April _MayJuneJulyAugustSeptemberOctoberNovemberDecember

1932JanuaryFebruaryMarchAprilM a y -JuneJuly

Week ending (Friday)July 3June 10 _June 17June24_

June 1July 8 _.July 15July22July29Aug. 5Aug. 12 .

2,3762,3872,4042,4072,3452,3332,2562,1182,069

1,9791,9071,8991,9962,1382,0622,003

2,1142,0902,0952,0511,9791,9471,9822,0192,057

2,0192,034

829

887843864848774766

724681687780874783767

837779791786

758717753781814

777791

962961949950943918872832807

767753747749800819781

585578573 i570559551536512

488473465466464459455

816844844807

772760778787797

794796

460466459458

470451452446

448447

55.666.8128.9124.4100.6120.3129.157.059.5

35.443.859.0152.1277.1234.4204.4

i

7.215.571.460.634.353.852.510.718.5

4.57.217.888.1155.189.475.0

122.078.891.294.4

65.825.162.989.7122.5

78.195.1

20.223.627.032.835.736.739.719.416.9

1.811.317.335.791.5111.491.6

109 7136.2130.0100.6

72.568.386.597.4

111.3105.6108.6

28.227.730.530.930.629.837.026.930.929.225.323.828.330.533.637.9

(*)(J)

i Central reserve city banks only.Back figures.See (for monthly data) BULLETIN for June, 1931, p . 347.

> Figures not available by weeks.

MEMBER BANK DEPOSITS[In millions of dollars]

Month

1931AprilMayJune _ _.JulyAugustSeptemberOctober - -November .T)po


ALL MEMBER BANKSCLASSIFICATION OF LOANS AND INVESTMENTS[In millions of dollars]

Call date

Totalloansand

invest-ments

Loansto

banks

Loans to other customers

Total

Se-cured

bystocksand

bonds

Se-cured

byreal

estate

Other-wise

se-curedand

unse-cured

Open-market loans

Total

Purchased paper

Accept-ancespay-ablein

UnitedStates

Ac-cept-ancespay-able

abroad

Com-mer-cial

Loansto

bro-kersin

NewYork*

Investments

Total

U. S.Gov-ern-

mentsecu-rities

Othersecu-rities

Totalloans

se-cured

bystocksand

bonds3

TOTALALL MEMBERBANKS

1928Dec. 311929Mar. 27

June 29Oct. 4Dec. 31

1930Mar. 27June 30Sept. 24Dec. 31

1931Mar. 25June 30Sept. 29....Dec. 31

1932June 30NEW YORK CITY

1928Dec. 31. . .1929Mar. 27...

June 29. _.Oct. 4___.Dec. 31. . .

1930Mar. 27...June30__.Sept. 24...Dec. 31 . . .

1931Mar. 25...June 30-. .Sept. 29..Dec. 31. . .

1933June 30. .OTHER RESERVE CITIES

1928Dec. 311929Mar. 27

June 29.Oct. 4Dec. 31

1930Mar. 27June 30Sept. 24Dec. 31-. _

1931Mar. 25June 30Sept. 29Dec. 31 -__

1932June 30."COUNTRY" BANKS

1928Dec. 311929Mar. 27.

June 29Oct. 4Dec. 31

1930Mar. 27June 30Sept. 24Dec. 31

1931Mar. 25June 30__Sept. 29 _Dec. 31

1932June 30.

35,68435, 39335, 71135,91435, 93435,05635, 65635, 47234, 86034, 72933,92333,07330, 57528,001

7,9517,7268,1608,1508,7748,2388,7988,5578,5828,4738,2878,2537,4606,715

14,06613,92513,83213, 98313, 78513, 57513, 70113,97113, 75813,96513, 56713, 01612,11511,045

13,66713, 74113, 71913, 78013, 37513, 24313,15712, 94412, 51912, 29012,06811,80510,99910, 240

538548670640714527535466631446457599790573

251314302322199196169283154150250374260

213258308294346263277235286235247284347254

21,46021,90322, 51723, 24923,19321,49421, 56521, 01021,00719, 94019, 25718, 71317, 57015, 267

3,9404,2534,5324,8464,9644,3384,3084,2764,3384,0073,8393,8503,6942,856

9,2679,2869,4349,7759,7488,9519,6298,7268,9068,4098,1007,8457,4076,519

8,2548,3648,5518,6278,4818,2068,2298,0077,7627,5247,3187,018

7,3487,5407,7348,1098,4887,7308,0617,8647,9427,4237,1176,8426,2905,292

1,7081,7441,8771,9442,2001,9362,0222,0312,1371,9601,8971,8161,7281,343

3,7343,7403,718

5,892

3,9753,6043,8113,6323,6563,3663,1883,0922,8062,403

1,9062,0562,1392,2952,3142,1902,2272,2002,1492,0972,0311,9351,7561,546

3,1233,1233,1643,1523,1913,1703,1553,1633,2343,2203,2163,1493,0382,894

132148175176169150157157147150160152153160

1,5471,5091, 5031,4911,5591,5441,5241,5261,6311.6191,6211,5851,5381,407

1,4441,4651,4861,4851,4621,4751,4751,4801,4551,4491,4371,4111,3461,328

10, 99111,24011,61811,98811,51510, 59510,3499,9829,8319,2988,9228,7228,2447,081

2,1002,3612,4802,7262,5952,2522,1292,0872,0541,8961,7821,8811,8131,353

4,0364,2134,4154,2143,8023,6933,5673,6203,4233,2913,1683,0632,709

4,9044,8434,9264,8474,7054,5414,5274,3264,1583, 9783,8493,6733,3673,018

3,1582,4942,4722,2762,2433,0973,1133,2622,2332,4542,1031,563901747

1,7901,2501,4961,1961,3971,6552,0911,9121,5251,6511,4971,121695565

742645480526438945710

1,064531645470326135118

6255984965534094963122861771581351167164

10914610893212175170205315361389268146313

6159585912889144148188199296201107

18431785159185412215891673538

1039390708079716255101113704134

390376249228291499507523366361384296140122

15014788751082423013372122121891676262

211192140144163207171164120114101814836

2,5561,8792,0251,8851,6602,3442,3652,4721,4981,6301,217928575278

1,6391,1021,3591,0961,2021,4771,8831,7141,2811,3671,063839542258

54142334941325060935364316722712456167

376354316376208258129115493630321613

10,52910,44810,0529,7499,7849,93710,44210,734

11,12,10612,19911,31411, 414

1,9331,9721,8191,8072,0912,0462,2032,1982,4352,6622,8013,0322,6973,033

3,8443,7363,6113,3883,2533,4163,6853,9474,0354,6764,7504,5614,2264,154

4,7514,7404,6234,5544,4394,4754,5544,5894,5194,5504,5554,6064,8924,226

4,3124,4544,1554,0223,8634,0854,0614,0954,1255,0025,3435,5645,3195,628

1,0941,1351,006

9891,1121,1501,1471,0911,2391,4661,6561,8301,7682,008

1,8361,8961,7651,6711,4841,6621,6861,7851,7272,3132,4082,3012,1332,187

1,3821,4241,3841,3611,2671,2731,2291,2191,1591,2241,2791,4331,4181,432

6,2175,9945,8985,7275,9215,8526,3806,639

6,7636,6355,9965,786

839838813817979897

1,0561,1071,1971,1961,1451,202

9281,025

1,8401,8461,7171,7691,7541,9992,1612,3082,3642,3422,2602,0931,966

3,3703,3163,2403,1933,1723,2023,3263,3703,3593,3263,2763,1722,9742,794

10,1729,693

10, 09410,31410, 50510,33410,65610,5119,7549,2728,5638,0817,3205,916

3,4912,9713,3963,1913,5623,5043,9833,7983,5503,3973,0262,7802,4741,757

4,3814,2924,2214,4294,3974,3684,3064,3873,9913,7293,4593,3173,0502,585

2,3002,4292,4802,6942,5452,4622,3672,3262,2132,1472,0781,9851,7961,574

i Loans (secured by stocks and bonds) to brokers and dealers in securities at New York City.* Including loans to banks secured by stocks and bonds, reported separately after 1929 and estimated for preceding dates as one-half of total

loans to banks.'Central reserve city banks only.

Back figures.This classification of loans is not available for dates prior to Oct. 3, 1928, but comparable figures of total loans secured by stocksand bonds are given for June 30, 1925-1928, in the board's Annual Report for 1928 (Table 52); for separate figures of United States Governmentsecurities and other securities back to 1914, see Annual Report for 1930 (Table 47).



ALL BANKS IN THE UNITED STATESTOTAL LOANS AND INVESTMENTS, DEPOSITS[In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private

banks under State supervision. For back figures see BULLETIN for May, 1931 (p. 253), and Annual Report for 1931 (Tables 45-46)J

Date

Total loans and investments

All banks

Total Loans Invest-ments

Member banks

Total Loans Invest-ments

Nonmember banksDeposits (exclusive ofinterbank deposits)

Total Loans Invest-mentsAll

banksMem-

berbanks

Non-member

1928June 30.Oct. 3 Dec. 3 1 -

1929Mar. 27.June 29_.Oct. 4 - _Dec. 3 1 -

1930Mar. 27 __June 30. _.Sept. 24...Dec. 31

1931Mar. 25..June 30..Sept. 29_Dec. 31

57.26557, 21958.266

58,01958, 47458,83558,417

57,38658,10857, 59056, 209

55,92455, 02153, 36549,704

39,46439, 67140, 763

40, 55741, 51242,20141,898

40, 68640, 61839, 71538,135

36,81335,38433, 75031,305

17,80117, 54917,50417,46216,96216,63416, 519

16,70017,49017,87518, 074

19, 11119, 63719, 61518, 399

1932June 30..

35,06134,92935,684

35,39335, 71135,91435,934

35,05635, 65635, 47234,860

34, 72933,92333,07330, 575

28,001

24,30324,32525,155

24,94525, 65826,16526,150

25,11925, 21424, 73823,870

22,84021,81620,87419, 261

16,587

10,75810,60410,529

10,44810,0529,7499,784

9,93710,44210, 73410,989

11,88912,10612,19911,314

11,414

22,20422, 29122,582

22, 62622, 76322,92222, 483

22,33122,45322,11821,349

21,19521,09920, 29219,129

15,16115,34615, 607

15,61215,85316,03615,748

15,56815, 40414,97714,264

13,97413, 56812,87612,045

7,0436,9456,975

7,0136,9106,8856,735

6,7637,0487,1417,085

7,2227,5317,4167,084

53,39853, 72056, 766

54,54553,85255,18055,289

53,18554,95452,78453,039

51,42751, 78249,15245,821

32,13332,13834,826

33,21532, 28433,00433, 865

32,08233, 69031,83932, 560

31,15331, 56629,46927,432

24, 755

21,26521, 58221,940

21,33021, 56722,17621,423

21,10321,26420,94520,479

20,27420, 21619, 68318,389

NUMBER OF BANKS

Date

1925Dec. 31 .

1926Dec. 31

1927June 30Dec. 3 1 - .

1928June 30. _Dec. 31 .

1929June 29Dec. 29

1930June 30Dec. 31

1931June 30Sept. 29Dec. 31

1932-June30

Total i

28,257

27,367

26,76526,416

25,94125, 576

25,11024, 630

23,85222, 769

21,90321, 29419,966

Member banks

Total

9,489

9,260

9,0999,034

8,9298,837

8,7078,522

8,3158,052

7,7827,5997,246

6,980

Na-tional

8,048

7,906

7,7907,759

7,6857,629

7,5307,403

7,2477,033

6,8006,6536,368

6,145

State

1,441

1,354

1,3091,275

1,2441,208

1,1771,119

1,0681,019

982946878

835

Non-mem-ber

banks

18,768

18,107

17, 66617,382

17, 01216, 739

16,40316,108

15, 53714, 717

14,12113, 69512, 720

i All banks in the United States; includes national banks, State com-mercial banks and trust companies, mutual and stock savings banks, andall private banks under State supervision.

BANK LOANS AND INVESTMENTS, PERCENT-AGE DISTRIBUTION

[Figures for Dec. 31,1931]

All banks in the United StatesMember bankstotal

Reserve city banks (62 cities)Central reserve city banks

New York CityChicago

Other reserve city banksNew York City__Chicago _..

Other Federal reserve bank cities(10 cities)Federal reserve branch cities (25

cities)Other reserve cities (25 cities)

"Country" banks *Nonmember banks

Numberof banks

19,966

7,246

403

3912

923

97

13390

6,843

12,720

Total loans andinvestments

Amount(millionsof dollars)

49,704

30.575

19.576

7,4601,517

5,200

4,0991,200

10, 999

19,129

Percent-age dis-

tribution

100

62

39

153

10

222

38

i Includes certain outlying banks in reserve cities.



REPORTING MEMBER BANKS IN LEADING CITIES[In millions of dollars. Monthly data are averages of weekly figures]

Month or date

Totalall weekly reporting member banks

Loans and investments

TotalLoanson se-

curities

Allotherloans

Investments

Total U.S. se-curities

Bor-row-ingsat

F. R.banks

New York City

Loans and investments

TotalLoanson se-

curities

Allotherloans

Investments

Total U.S. se-curities

Bor-row-ingsat

F. R.banks

Other leadingcities

Totalloans

and in-vest-

ments

Bor-row-ingsat

F. R.banks

1931MayJuneJulyAugustSeptember.October...November.December.

1932January...February..MarchAprilMayJuneJulyAugustJune 1JuneSJune 15June 22June 29. . . .July 6July 13July 20July 27

August 3_-August 10.August 17.August 24-August 31.

22, 71322,43922, 39322,09322,07821, 42521, 02320,749

20,17819,77519,43419,09619,11218,87718,41918, 587

6,7706,6316,4806,4135,9715,8595,763

5,6445,4975,3885,1504,9754,8114,6164,578

7,8937,8537,9647,9007,8707,6797,5867,441

7,3317,214

19,01618, 71219,08718,81918,754

18,53218,47818.33318.334

18,69618,62218, 580IS, 49918, 539

4,9074,7984,8284,778 J4, 745

4,6324,6264,6184,587

r4,632r4,6l2'4,586r4,5514,512

6,8206,7276,6096,4556,319

6,7246,5996,6876,5196,518

6,4846,5236,4106,405

'6,364'6,346'6,323r6,277

0. 284

7,8227,8167,7987,7137,7957,7757,5787,545

7,2037,0647,0597,1267,4107,4577,3487,690

7,3857,3157,5727,5227,491

7,4167,3297,3057,342

7,7007,6647,6717,6717.743

3,9574,0484,1214,0744,1544,1714,0724,127

3,9433,8563,8663,8754,1214,2004,1444,499

28564475127398404499

469484368277185191212164

7,8757,6947,7807,6337,7447,4667,2587,165

6,9216,6456,5216,4926,6476,5416,3536,517

3,0392,8462,7642,6402,6572,3692,2772,237

2,2092,1272,065., 947.,851,745,644,657

4,0324,0774,3384,2984,254

4,2104,1234,1074,136

4,4884,4824,4994,4914, 535

197207198189167

197207229214

188163162150158

6,6356,4306,6456,4626,534

6,4206,3916,2856,317

6,5566,5156,5016,4736,543

2,1942,2042,3652,3702,3752,2722,2432,218

2,2202,1712,0782,0292,0381,9951,8961,819

2,6422,6442,6512,6232,7122,8252,7382,710

2,4922,3472,3782,5162,7582,8012,8133,041

1,4601,5231,6081,6001,6521,7501,7051,732

,631L,521,547,620,797,849,860081

,815,737,759,720

,647,650,648

1,630

1,6691,6721,6621,6511,632

2,0601,9662,0651,9251,957

1,9171,9561,8511,862

1,8321,8211,8201,8031,819

2,7602,7272,8212,8172,881

2,8562,7852,7862,825

3,0553,0223,0193,0193,092

14,83814, 74514,61314,46014, 33413,95913, 76513,584

13, 25713,13012, 91312,60412, 46512,33612,06612, 070

.,777

.,789

.,878,881,921

1,9011,8311,8391,870

2,0872,0652,0732,0672,116

12, 38112, 28212, 44212, 35712,220

12,11212,08712,04812,017

12,14012,10712,07912,02611,996

28564472124324888416

435461365277185191212164

197207198189167

197207229214

188163162150158

T Revised

BROKERS' LOANSR E P O R T E D BY T H E NEW YORK STOCK EXCHANGE MADE BY REPORTING MEMBER BANKS IN N. Y. CITY

[Net borrowings on demand and on time. In millions of dollars] [In millions of dollars. Monthly data are averages of weekly figures]

End of month

JanuaryFebruaryMarchAprilMayJune

JulyAugustSeptemberOctoberNovemberDecember

Total

1931

1,7201,8401,909

1,6511,4351,391

1,3441,3541,044

796730587

1932

512525533

379300244

242332

From NewYork banks

and trust com-panies

1931

1,5571,6461,692

1,4661,2931,221

1,1711,160

932

582455

1932

374385391

300243194

195248

From privatebanks, brokers,foreign banking

agencies, etc.Month or date

1931

163194217

185141170

173194112

108148132

1932

138140142

795749

4784

1931AugustSeptember ; 1,268OctoberNovemberDecember

1932JanuaryFebruaryMarchAprilMayJuneJulyAugust

Back figures.See Annual Report for 1930 (Table 57).

August 3 . .August 10.August 17.August 24.August 31.

Total

1,3421,268

921802655544495531500436377335344

332~345344355345

Forown ac-count

951943674588554473417432423385342309319

307320320330318

For ac-count ofout-of-town

banks l

22617490

124886572947044291817

1617171819

For ac-count ofothers

165151157901366577688

98

78

| * Member and nonmember banks outside New York City (domesticbanks only).

I Back figures.See Annual Report for 1931 (Table 62).



ACCEPTANCES AND COMMERCIAL PAPERBANKERS' ACCEPTANCES OUTSTANDING (DOLLAR AC-

CEPTANCES)[In millions of dollars]

End of month

1930AprilMayJuneJulyAugustSeptember-OctoberNovemberDecember..

1931JanuaryFebruary.-_MarchAprilMayJune...JulyAugustSeptember-OctoberNovember. .December..

1932JanuaryFebruary.-.MarchAprilMayJuneJulyAugust., .

Totalout-

stand-ing

1,4141,3821,3051,3501,3391,3671,5081,5711,556

1,5201,5201,4671,4221,4131,3681,2281,090

9961,0401,002

974

961919911879787747705

Held by Fed-eral reserve

banks

Forownac-

count

209184127129167208141143328

8985

123162124

953970

420647418305

1197636164

36123

Forac-

countof for-eign

corre-spond-

ents

465463470479471432433429439

447456431409380341243228100

99126251

314312335292183

985949

Held by group of ac-cepting banks

lotai

158166205279267317384493371

571550472410464554668606410230296262

332343377455510518563

Ownbills

5563646395

131172180

90

134151131125171196232168162112125131

159175155188225200197

Billsbought

103103141216172186212313282

437398341285293357436438248118171131

174168222268286318366

Heldby

others

582570503463434411550507417

412429440441444379278186

6763

161156

195189163115

909670

Preliminary.Figures for acceptances outstanding (and held by accepting banks)

from American Acceptance Council.Back figures.See Annual Reports for 1930 (Table 64), 1929 (Table 58)

and 1928 (Table 61).

ACCEPTANCES PAYABLE IN FOREIGN CURRENCIES-HOLDINGS OF FEDERAL RESERVE BANKS


End of month

JanuaryFebruary..MarchAprilMayJuneJulyAugustSeptemberOctober-November.December.

1929

1,0191,0291,0361,0361,0401,0432,061

12, 34616,95517,0641,0271,030

1930

1,0351,0381,0401,0541,0581,0641,0651,0711,075

21,58331, 58735,983

1931

36,11923,958

1,0631,0741,073

10, 55134,371

145, 21548,80433,50133,38633,429

1932

33,44433,47830, 77830, 73630,83730,76230,64530,834

Back figures.See Annual Report for 1928 (Table 12), 1927 (Table 12),1926 (Table 24), etc.

CLASSES OF BANKERS' ACCEPTANCES (DOLLARACCEPTANCES)


End of month

OUTSTANDING

1931JuneJulyAugustSeptemberOctober..NovemberDecember

1932JanuaryFebruaryMarch ...AprilMayJuneJuly___

HELD BY F. R. BANKS(OWN ACCOUNT) *

1931JuneJulyAugustSeptemberOctober.-.NovemberDecember

1932JanuaryFebruary.March _._AprilMay.. .JuneJuly

Total

1,3681,2281,090

9961,0401,002

974

961919911879787747705

953970

420647418305

119763616

53612

onim-

portsintoU.S.

Basedon ex-portsfromU.S.

202186178174173158159

1501421291181039785

157

1068

1056143

16942

(2)1

Basedon goodsstored inUnitedStates(ware-house

credits)or

shippedbetweendomes-

tic points

349330276257261254222

207195205199184173162

254238202190238258267

272271267251217193178

1299984

322712

Dollarex-

change

Basedon

goodsstored

inforeigncoun-

tries orshipped

be-tweenforeignpoints

494423

338330

296

284287294269271265

391638185285170104

4725135

(*)

1 Total holdings of Federal reserve banks include a small amount ofunclassified acceptances.

Less than $500,000.Back figures.See Annual Report for 1931 (Tables 67 and 15).

COMMERCIAL PAPER OUTSTANDING[In millions of dollars]

End of month

JanuaryFebruaryMarch _AprilMayJune _July. .

mAugust _.SeptemberOctoberNovemberDecember

1929

407411387351304274265267265285316334

1930

404457529553541527528526513485448358

1931

327315311307305292289271248210174118

1932

108103106108111103100

Back figures.See Annual Report for 1930 (Table 60).



BANK SUSPENSIONS AND BANKS REOPENED

Year and month

Banks suspended

Number

Allbanks

Members

Na-tional State

Non-mem-bers All banks

Deposits (in thousands of dollars)

Members

National State

Non-mem-bers

Banks reopened

Number

Allbanks

Mem-bers

Non-mem-bers

Deposits (in thousands ofdollars)

Allbanks

Mem-bers

Non-mem-bers

19211922 _.1923192419251926. _.19271928-.1929193019311930December.1931January...

February. .MarchAprilMayJuneJulyAugustSeptember.October. _.November.December.

1932January...February...MarchAprilMayJuneJulyAugust

501354648776612956662491642

1,3452,298

344

2027786649116793158305522175358

34212547

'7482

'151'131

514590122118125915764161409

2015181724261629461003563

742676144420

19123437283533161726108

431297524617466796538418561

1,1581,781

288

1765767446513175117243397132277

2559340

'6362

' 103'107

196,460110, 721188, 701213,338172, 900272,488193,891138, 642234,532864, 715

1,691,510

367,119

76,55334, 61634, 32041, 68343, 210190, 48040, 745180, 028233, 505471,38067, 939277,051

219,07165,72015,289

'31,613' 34, 365 136, 655' 49, 877v 34, 730

21, 28519,09232, 90460, 88958, 53747,86646,58131, 61937,007173,290439,171

44,884

14,5695,82210,89919,49812,32031,3687,045

31,62979,446111,08828, 03987,448

63,68622,6284,4842,6346,258

' 42, 474' 17, 546P 11, 629

21, 2185,15118, 32413, 5808,727

20, 94619, 75510, 62120,128207,150294, 357

163,993

7,6157,901108

2,2645,05539,4341,805

52, 66030, 272117, 2594,216

25, 768

10,8738,427

153, 95786,478137,473

11, 8871,2377,589

' 1, 769*>855

105, 636203, 676127,55596,402177, 397484,275957,982

158, 242

54,36920,89323,31319,92125,835119, 67831,89595, 739123, 787243,03335, 684163, 835

144,51234,66510,805

' 17, 092' 26, 870' 86, 592' 30, 562v 22, 246

65379462149953958147276

43

584931

5041237448135843453140245

43

55432924739462017

16402819

'19'18'18P 1 7

17,49335, 56511, 67422,46216, 61860, 61035, 72915, 72725, 82961, 599158,187

16,340

19,32217,15711, 78823, 6133,890

24, 5222,52514, 3964,258

3,13211, 6185,0687,1906,7798,1798,3116,6102,2733,538

53, 944

1,8563,3333,38115,893

40123,816

13,04118, 579

10,95219,60119,59011,04133, 21411, 50169, 9811 32, 270

9913,684589

3,2934,9449,7141,7934,2192,89116, 404P 5, 018

14, 36123, 9476,60615,2729,839

52, 43127,4189,117

23,55658,061104,243

16, 340

17,46613,8248,4077,7203,489

7062,525

14,3964,2584,1059,357

17,990

7,65914,6579,8769,248

' 28, 995'8,610

' 53, 577v 27, 252

Preliminary. r Revised.Banks suspended mid banks reopened.The statistics of bank suspensions relate to banks closed to the public, on account of financial difficulties,

by order of supervisory authorities or directors of the bank. Some banks reopen before the end of the calendar month in which they were closed;such banks are included in the record of suspensions for the month as given in the table. Reopenings are recorded as of the month in which theyoccur, and include for any given month reopenings both of banks closed during the month and of banks closed earlier.

Deposits.Figures of deposits in banks suspended are as of date of suspension whenever data as of this date are available; otherwise they areas of the latest available call date prior to suspension. For banks reopened the figures of deposits are not as of date of reopening, which are seldomavailable, but are taken from the record of suspensions.

Back figures.See annual report for 1930 (Tables 66 and 67).

MEMBER BANK HOLDINGS OF ELIGIBLE ASSETS


Call date

1929Mar. 27-.June 29-.Oct. 4-_.Dec. 31 . .

1930Mar. 27-June 30-.Sept. 24-Dec. 3 1 -

1931Mar. 25..June 30..Sept. 29-Dec. 3 1 -

1932June 30..

Holdings> of Government securities * and eligible paper (including paper under rediscount)By reserve city banks

U .S .Govern-ment se-curities

2,8322,5772,4692,4032,6192,6402,6822,7773,5843,8713,9423,7063,985

Eligiblepaper

2,5822,6882,8652,7132,5422,2852,2712,1002,0451,8701,7871,5051,457

Total

5,4145,2655,3345,1165,1614,9254,9534,8775,6295,7415,7295,2115,442

B y "

U . S .Govern-ment se-curities

974929912814818772764708776836994989994

country"

Eligiblepaper

1,7611,7731,7331,6841,6621,6201,5411,4381,373L, 3281,2091,068

971

Danks

Total

2,7352,7022,6452,4982,4802,3922,3052,1462,1492,1642,2032,0561,965

By all member banks

U.S.Govern-ment se-curities

3,8073,5063,3813,2173,4383,4123,4463,4854,3604,7074,9364,6944,979

Eligiblepaper

4,3434,4614,5984,3974,2043,9053,8123,5383,4183,1982,9962,5732,428

Total

8,1507,9687,9797,6147,6427,3177,2587,0237,7787,9057,9327,2677,407

Memberbank

borrow-ings atFederalreservebanks

9811,029

899646206274173248165147323623440

i Exclusive of approximately $650,000,000 of Government securities pledged against national bank note circulation.Back figuresSee BULLETIN for March, p. 156.



FEDERAL RESERVE BANK RATESDISCOUNT RATES

[Rates for member banks on eligible paper]

Federal reserve bank

BostonNew YorkPhiladelphia..Cleveland.-RichmondAtlantaChicagoSt. LouisMinneapolis..Kansas City..DallasSan Francisco

Bate ineffect onSept. 1

Date estab-lished

Oct. 17,1931June 24,1932Oct. 22,1931Oct. 24,1931Jan. 25,1932Nov. 14,1931June 25,1932Oct. 22,1931Sept. 12,1930Oct. 23,1931Jan. 28,1932Oct. 21,1931

Previousrate

Back figuresSee Annual Report for 1931 (Table 36).

BUYING RATES ON ACCEPTANCES

[Buying rates at the Federal Reserve Bank of New York]

Maturity

1-15 days . . .16-30 days. .31-45 days. .46-60 days. .61-90 days. .91-120 days.121-180days

Rate ineffect onSept. 1

111111H

Date estab-lished

June 24, 1932 .do

do. . . . do. . . . do. . . . do. . . .do

Previousrate

VA.3

NOTE.Rates on prime bankers' acceptances. Higher rates may becharged for other classes of bills.

OPEN-MARKET RATES

RATES IN NEW YORK CITY

Month or week

1931MayJuneJulyAugustSeptemberOctoberNovemberDecember

1932January. . .FebruaryMarch .*...AprilMayJuneJulyAugustWeek ending-

July 30August 6..-August 13 __August 20_ _August 27. _

Prevailing rate o n -

Primecom-

mercialpaper,4 to 6

months

2 -2\2222

3^-4

3^-4

2 -2

2 -22 -2M2 -234

Primebank-

ers'accept-ances,

90days

H

H

l i m eloans,

90days*

1J4-21X-1H1X-U41X-IHIX-2

Average rate

Call loans i

New

2 -3

IX

1X-1X

1.451.501.501.501.502.102.502.73

2.612.502.502.502.502.502.082.00

2.002.002.002.002.00

Re-newal

1.451.501.501.501.502.102.502.70

2.652.502.502.502.502.502.082.00

2.002.002.002.002.00

Average yieldon-

U.S.Treas-

urynotesand

certifi-cates,3 to 6

months \

Treas-ury

bonds

.55.41.42

.451.701.77

2.482.42


SECURITY PRICES AND SECURITY ISSUESSECURITY PRICES

[Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures]

Month or date BondsiPre-

ferredstocks3

Common stocks (1926=100)

Total Indus-trialKail-road

Publicutility Auto-

mobile

Selected groups of industrial issues

Build-ing

equip-ment

Chainstore

Chem-ical

Cop-perand

brass

Elec-tricalequip-ment

Ma-chin-ery

Oil Steel Tex-tile

Number of issues1931June

JulyAugustSeptember.October...November-December.

1932January...February..MarchAprilMayJuneJulyAugustAugust 3 . . .August 10..August 17..August 24..August 31-

20 421 351 37 12 16 10 15 10 2899.499.498.595.689.489.081.681.080.380.879.475.272.274.283.2

78.882.083.586.285.5

95 153158154132112115969493937368555584

101105103857075656460553430262645

1281311271109096798079856152485075

35

157161155132113114948577775752404373

454645403636313131312623202233

i i

2731323540

1 Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity.

20 high-grade industrials; average price.

CAPITAL ISSUES[Long-term; i. e., 1 year or more. In millions of dollars]

Year and month

1923 - . - .19241925192619271928192919301931

1931JulyAugustSeptember..OctoberNovember..December. .

1932JanuaryFebruary.. .MarchAprilMayJuneJuly..

New issues

Total(do-mestic

andfor-

eign)

4,4375,5576,2016,3147,5568,040

10,0916,9093,099

22512024545

112123

18473

162719178

106

Domestic

To-tal*

4,0164,5885,1255,1896,2196,7899,4206,0042,860

22312022145

110123

18473

162719178

104

Stateandmu-nici-pal

1,0431,3801,3521,3441,4751,3791,4181,4341,235

9374

114165444

13835

10930847425

CorporateBonds

andnotes

1,9762,2002,4522,6673,1832,3852,0782,9801,240

1133494142628

4235471574

62

Stocks

659829

1,1531,0871,4742,9615,9241,503

311

212124

2439

4410001

For-eign

421969

1,0761,1251,3371,251

671905229

20

24020

0000002

Re-fund-ing

issues(do-mesticandfor-

eign)

682759925

1,0462,2201,8581,422

711949

457

431

2121

14212972326457

* Includes issues of Federal land banks and Federal intermediate creditbanks, not shown separately.

Sources.For domestic issues: Commercial and Financial Chronicle;for foreign issues (issues publicly offered) annual totals are as finallyreported by Department of Commerce, while monthly figures are ascompiled currently and are subject to revision.

UNITED STATES GOVERNMENT SECURITIES[In millions of dollars]

Month

1931MarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

Total (12months).

January..February.MarchAprilMayJuneJulyAugust

1932

Outstanding at endof month

Total

16,28016,36816,24516,52016,52216,58517,04817,02817,04017,528

17,51517,82018,19018,28718,72919,16119,29719,758

Bondsand

notes

13,83813,56713,32314,15214.17814.17914,98014,98114,95515,092

15,10215,10215,10215,10315,31815,71515,74416,454

Certif-icatesandbills

2,4422,8012,922

2,3442,4062,0682,0472,0852,436

2,4132,7183,0883,1843,4113,4463,5533,304

Increase or decrease() during month

Total

30188

-123275

263

463- 2 0

12488

1,754

- 1 330537097

442432136461

Bondsand

notes

-735-271-244

82926

1801

1- 2 6137

638

10

121539729

710

Certif-icatesandbills

1,036359121

-554- 2 4

62-338- 2 1

38351

1,116

- 2 330537096

2273S

107-249

NOTE.Figures relate to interest-bearing public debt; matured non-interest-bearing debt amounted to $309,000,000 at the end of August, 1932.Figures include obligations held in Government trust funds amountingto $384,000,000 at the end of August, 1932.

Bonds and notes are long-termi. e., 1 year or more (figuring fromdate of issue); certificates and bills, shorter term.



PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES[Index numbers; 1923-1925 average=100. The terms adjusted and unadjusted refer to adjustment for seasonal variation}

month

1919192019211922 _ .1923 ..19241925192619271928.1929 _19301931

1928JulyAugust. __SeptemberOctober. _NovemberDecember

1929January..February.MarchAprilMayJuneJuly.August...SeptemberOctober. .NovemberDecember

1930January..February.MarchAprilMay ...JuneJulyAugust...SeptemberOctober. _NovemberDecember

1931January..February.MarchAprilMayJune .._ .July.August...SeptemberOctober. _NovemberDecember

1932January..February.MarchAprilMayJuneJuly

Industrial production *

Total

Unad-justed

83876785101951041081061111199681

105110116118115109

11712112412412612512012212312110896

10310910610710599919092908477

828789908983807877757268

717168646159

*56

Ad-justed

109110113115117118

119119119121122125124121121118110103

10610710410410298939090888684

838687888783827876737374

726967636059

58

Manufactures1

Unad-justed

84876786101941051081061121199580

105110116117115110

11712212612812812712012212311910793

10211010911010698898890878274

818891919083797776727066

707066636059

55

Ad-justed

110111114116118120

120119120122123127125122121119110101

10510710410410197928989868582

838687878782827875717173

716864615858

"57

Minerals i

Unad-justed

7789707410596991081071061159984

104111115123118106

114116101103116116118121127127114110

10810491941021031001011011059689

868482838485858282908379

74757772656162

Ad-justed

102105107111114111

116119109114117114116115118116110116

110108981041041021009694959293

888689918786867977828184

77788479676364

Building contracts awarded(value) 2

Total

Unad-justed

6363567984941221291291351179263

142137138134122107

981021211391431441361291121049484

78891021131251161078582756859

586877827874686359524330

25232631313231

Ad-justed

132131134136132127

120118121123121126124122110107103102

9510410210110599958181787673

717977736563615959554938

31272627262727

Residential

Unad-justed

443044688195124121117126875037

12711611811511293

8184106117113102948473676653

464454626154484862514637

374250524741363232292620

16151616141212

Ad-justed

126119118115114106

97941011009795938673676761

564952535249474952524843

444747444037353332302723

19171514121111

All other

Unad-justed

79906588869412013513914214212584

155154154150130117

111116133158168178170166144135116109

104126141156178166155115108948677

758998107104101948781715739

33303543454746

Ad-justed

137141147152146145

139137137142141152149152140139132136

128148144140148140135106105999998

93104100968584828180766750

41353638373940

Factory em-ployment 8

Unad-justed

10710882901049610010199971018874

96981001009998

971001011021021021021041051039995

939393939189868586848179

767778787775747475716968

66676664615957

Ad-justed

9797989899100

1001001011021021031031031021019997

969493929190878483828180

787878787876757473706969

68686664626058

Fac-torypay

rolls 3

Unad-justed

981187781103961011041021021088766

98103104107104104

10110811111111111010611111211110399

949898979491838283817574

687375747268646462595656

52545249464340

Freiglit-carloadings 4 *

Unad-justed

84917987100971031061031031069275

10510911911910994

95999810210911011111512111810289

899190939795959699978674

747475777977787678787061

58595857535251

Ad-justed

102103105106107106

108107105108107108107107106104102102

1009996979693928987868484

828080807977767269696869

6462615954'5251

ityprices *

1391549897101981041009597958673

979899979696

96959e969595979696959493

939190908987848484838180

787776757372727271707069

67666666646465

* Preliminary. Revised * Average per working day.i For indexes of groups and separate industries see p. 616; for description see BULLETIN for February and March, 1927; for back figures see

BULLETIN for March, 1932, p. 194.3 3-month moving average, centered at second month; for description and back figures see BULLETIN for July, 1931, p. 358.

For indexes of groups and separate industries see p. 617; for description and back figures see B ULLETIN for November, 1929, and November, 1930.* For indexes of groups see p. 577; for back figures see BULLETIN for February, 1931, p. 108. Revised index of Bureau of Labor Statistics (784 price series), 1926=100. Index numbers for groups of commodities are given on p. 618.


SEPTEMBER, 1932 FEDERAL RESERVE BULLETIN 0 / 7

MERCHANDISE EXPORTS AND IMPORTS[In millions of dollars]

Month

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

Year.

Merchandise exports

1928

411371421364423389379379422550545476

5,128

1929

488442490425385393403381437529442427

5,241

1930

411349370332320295267298312327289275

3,843

1931

250224236215204187181165180205194184

2,424

1932

150154155135132114

*107

Merchandise imports

1928

338351380345354317318347320355327339

4,091

1929

369369384411400353353369351391338310

4,399

1930

311282300308285250221218226247204209

3,061

1931

183175210186180173174167170169149154

2,091

1932

136131131127112111

79

Excess of exports

1928

7320401969716132

102195218136

1,037

1929

11972

10615

- 1 540501186

137104117

842

1930

1006769243544467986808566

782

1931

6649262924146

- 210364430

334

1932

152324

U20

328

v Preliminary.

DEPARTMENT STORESSALES, STOCKS[Index numbers; 1923-1925 average=100]

Month

JanuaryFebruaryMarchAprilMayJuneJuly _AugustSeptemberOctoberNovemberDecember

Year . . .

Index of sales l

Adjustedfor seasonalvariation

1931

979897

1069795918884868381

1932

78787280737167

Withoutseasonal ad-justment

1931

798092

10197906567879395

142

91

1932

64647076736747

Index of stocks (end ofmonth)

Adjustedfor seasonalvariation

1931

888684838382817981807978

1932

75737070686864

Withoutseasonal ad-justment

1931

788187878580757684888973

82

1932

67697272706660

i Based throughout on figures of daily average saleswith allowancefor changes from month to month in number of Saturdays and for 6national holidays: New Year's Day, Memorial Day, Independence Day,Labor Day, Thanksgiving Day, and Christmas. Adjustment for sea-sonal variation makes allowance in March and April for the effectsupon sales of changes in the date of Easter.

v Preliminary.Back figures.See BULLETIN for November, 1930.

FREIGHT-CAR LOADINGS, BY CLASSES[Index numbers; 1923-1925 average =100]

TotalCoal ,CokeGrain and grain prod-

uctsLivestockForest productsOreMiscellaneousMerchandise i _.

TotalCoalCokeGrain and grain prod-

uctsLivestockForest productsOreMiscellaneousMerchandise i

1932

March April May June July

Adjusted for seasonal variation

617148

725627285775

596232

866126185673

544826

765424

45471

' 5 24527

665322

65471

514924

705421

949

Without seasonal adjustment586748

624927

75475

575231

665627

95775

534226

625126

75674

523924

584524105671

514321

844521175268

Source of basic data: Americani In less-than-carload lots.Based on daily average loadings.

Railway Association.' Revised.Back figures.See BULLETIN for February, 1931, pp. 108-110.


578 FEDERAL RESERVE BULLETIN SEPTEMBER, 193 2

FOREIGN BANKING AND BUSINESS CONDITIONSANNUAL REPORT OF THE NETHERLANDS BANK

The annual report of the Netherlands Bankfor the year ended March 31, 1932, was pre-sented to the general meeting of shareholders onJune 27, 1932. Sections of the report are givenherewith: x

During the past fiscal year international con-ditions underwent a further unfavorable de-velopment. The economic crisis, which becameincreasingly severe and more widespread, ex-tended into the realm of finance. Owing to auniversal lack of confidence on the part ofboth lenders and borrowers, international deal-ings in credit and capital were suspended orsharply restricted. The considerable volumeof short-term loans on which the financialstructure had been built up to an undue heightwere suddenly withdrawn. Countries whichhad heavy short-term indebtedness abroad andno resources available for its repayment, orwhich could not realize on their own foreigninvestments, were faced with great difficulties.With or without the cooperation of their credi-tors, they either suspended payments or left thegold standard. More and more the worldcame to be split up into isolated units, eachfollowing a policy which was apparentlydesigned to further its own interests, but whichwas in reality harmful wherever their own truestinterests and international interests requiredmutual support and cooperation. The tragedyof the situation arises not so much from lackof realization of the growing dangers whichthreaten the world as from inability to drawthe necessary conclusions from that realization,and to take such measures as are needed tofacilitate the inevitable process of adjustment.The world is continually being driven further andfurther along a road which will never lead to thedesired goal, but which will apparently not beabandoned until exhaustion puts an end to arti-ficial and uneconomic measures and compels agradual resumption of the international ex-change of commodities, capital, and credit.Just as the World War, waged in the militaryfield, was terminated only when strength failedto carry it on, so the war now raging in theeconomic and financial field will be terminatedonly when hard facts make it impossible for thenations to continue their uneconomic policies.

Causes of the crisis.These developmentsduring the past financial year are undoubtedly

i The report, available in Dutch and in the official English translationpublished by the bank, contains in addition tables showing the opera-tions of the bank in detail, and sections dealing with the internationalsituation, prices, personnel, etc. All amounts of money expressed inflorins have been converted into dollars at par and then expressed inround figures. For earlier reports see BI'LLETIN for August, 1931, 1930,September, 1929, August, 1928, 1927. etc.

the result of the long series of transgressionsin the field of economics and finance which havebeen committed by all nations since the out-break of the World War. After the destructionof capital caused by four years of war the worldhas acted as if this war had been a source ofenrichment and development instead of im-poverishment and dislocation. Processes ofadaptation which had inevitably to be madeafter the war have been impeded and delayed.Inflation and speculation created an artificialand unreal purchasing powder which could notbe maintained. The peace treaties createdheavy debts which were not counterbalancedby any strengthening of the economic positionof the debtor countries, and which could be metonly so long as these countries could borrow insufficient amount to meet their debt payments.Short-term funds were advanced on a large scaleand were employed in long-term financing ofpartly unproductive and unnecessary enter-prises without the lenders realizing the dangersinvolved. Interest and amortization paymentson the debts so incurred were prevented by theconstant raising of tariff barriers and by otherprotectionist measures. As a result of thepeace treaties the frontiers separating thecountries of Europe from one another wereextended by no less than 20,000 kilometers(about 12,400 miles). The newly formedStates, with the aid of artificial measures, setabout building up their own industries andimpeding international trade. They obtainedthe necessary capital through foreign loans,which were granted without due considerationand had no sound economic basis.

All this, combined with rationalization,technical improvement and expansion, broughtabout an increase in production out of all pro-portion to the possibilities of sale and consump-tion, the process culminating in 1929. Thenpurchasing power began to decline from itsartificial level, commercial and industrial enter-prises were forced to suspend operations, andthe price decline became a catastrophic fall.At the same time all countries were takingartificial measures on an ever-increasing scalein an attempt to ward off the inevitable con-sequences of the course which they had followed.

The world is now revolving in a viciouscircle. The debtor countries can not fulfilltheir financial obligations because their creditorsrefuse to receive their goods or services, whichare, ultimately, their only means of meetingtheir obligations. The creditor countries per-sist in this refusal because they dare not expose



their national production to foreign competition.This line of action not only pr

frb_091932

Documents

assistant secretary

assistant deputy governor

assistant director

division of bank operations

louis walter

kansas city walter

walter lichtenstein

walter wyatt