BULLETIN. **zzzz** v JANUARY 1946 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Transcription

1 F E D E R A L R E S E R V E BULLETIN JANUARY 9 M^* ^ifs /^/?\\n» **zzzz** v BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

2 EDITORIAL COMMITTEE ELLIOTT THURSTON WOODLIEF THOMAS CARL E. PARRY The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for interpretations opinions expressed, except in official statements signed articles. CONTENTS Review of the Month The United Kingdom Postwar International Trade - Anglo-American Trade Financial Negotiations -9 British White Paper Published in Connection with Anglo-American Financial Agreement.. 0- Law Department: License to Transact Banking Business 8 Purchase of Government Obligations by Federal Reserve Banks 8 Consumer Credit Listed Articles Used in Realty Improvements 9 Foreign Funds Control Treasury Department Releases 9-0 Current Events - Foreign Banking Laws Reports: Transfer of Gold to French Stabilization Fund Re-establishment of the Austrian National Bank - National Summary of Business Conditions - Financial, Industrial, Commercial Statistics, U.S. (See p. 8 for list of tables) 8-8 International Financial Statistics (See p. 88 for list of tables) 88-0 Board of Governors StafT; Open Market Committee Staff; Federal Advisory Council 0 Senior Officers of Federal Reserve Banks; Managing Officers of Branches 0 Map of Federal Reserve Districts 08 Federal Reserve Publications (See inside of bac\ cover) PAGE Subscription Price of Bulletin A copy of the Federal Reserve BULLETIN is sent to each member bank without charge. The subscription price in the United States its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Newfoundl (including Labrador), Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, Venezuela, is $.00 per annum, or 0 cents per copy; elsewhere, $.0 per annum or cents per copy. Group subscriptions in the United States for 0 or more copies to one address. cents per copy per month, or $.0 for months.

3 FEDERAL RESERVE BULLETIN VOLUME January 9 NUMBER THE UNITED KINGDOM AND POSTWAR INTERNATIONAL TRADE THE RECENT AGREEMENTS The recently-announced agreements between the governments of the United States the United Kingdom contain proposals for solving some of the most pressing economic financial problems which face the postwar world. The agreements have already been approved by the British Parliament will soon be submitted to Congress for consideration. The most widely discussed feature of the arrangements is the financial agreement providing for a loan of,0 million dollars from the United States to the United Kingdom. The agreements as a whole go much further than this, however, for, in addition to the loan agreement, agreements have been made for the final settlement of lend-lease, reciprocal aid, surplus property other war claims, for steps looking toward the removal of barriers to trade commerce. In the words of the joint statement made by the President of the United States the Prime Minister of Great Britain, the discussions "have covered the questions of financial assistance from the United States to the United Kingdom, the demobilization of wartime trade monetary restrictions, the settlement of lend-lease, the disposal of surplus war property in the United Kingdom owned by the United States,, finally, long-range commercial policies in the broad sense, embracing the fields of trade barriers discriminations, policies in respect to commodities in world surplus, cartels, an international trade organization, international aspects of domestic measures to maintain employment." The agreements between the two governments were presented in three parts: () a joint statement regarding the understing reached on commercial policy; () a joint statement regarding settlement for lendlease, reciprocal aid, surplus war property, claims; () a financial agreement. The financial agreement, together with the joint statements on commercial policy on lend-lease, reciprocal aid, etc., represents an integral part of a broad program for reviving postwar international trade, not only between the two largest trading nations in the world, but also between those two nations the rest of the world. THE FINANCIAL AGREEMENT The loan of,0 million dollars proposed in this agreement would be made in the form of a "line of credit" upon which the British might draw at any time between the effective date of the agreement the end of 9. The main purpose of the loan is to assist the British in financing their necessary imports during the transition from war JANUARY 9

4 REVIEW OF THE MONTH to peace. In addition to the line of credit, a further credit of 0 million dollars has been agreed upon to cover the final settlement of lend-lease other claims arising out of the war. The rate of interest the terms of repayment are to be the same for both loans. The terms for the combined credits of. billion dollars were carefully drawn with a view to avoiding the strains which arose in connection with financial arrangements following the first World War. No payment of either interest or principal will be required during the difficult transition years. Beginning on December, 9, payments will be made by the United Kingdom in equal annual instalments over a period of fifty years. Such payments will include interest at the rate of two per cent on the outsting obligation in any year, as well as amortization of principal. If the entire credit is used, the annual payment of principal interest by the United Kingdom will amount to approximately 0 million dollars. If the United Kingdom has serious difficulties with its balance of payments, however, the interest portion of this annual payment may be waived. Thus, if in any year the average United Kingdom income from exports net invisible items in its balance of payments during the preceding five years is less than the value of 9-8 average imports, after correction for price changes, the United Kingdom will be entitled to a waiver of interest. This means, in general, that the United Kingdom would not need to pay interest as long as receipts on current account were inadequate to purchase the prewar physical volume of imports. In order to avail itself of the waiver, however, the United Kingdom would have to determine that a waiver was "necessary in view of the present prospective conditions of international exchange the level of its gold foreign exchange reserves." While the decision with respect to the necessity for a waiver would be made at the discretion of the United Kingdom alone, it is not believed that a determination that a waiver is necessary would be made lightly. In addition to the loan from the United States, it is anticipated that financial assistance will also be received from certain countries of the British Empire, notably Canada. In order to insure equal treatment of the loan from the United States with other postwar loans, the agreement provides that loans which the British receive from governments of the Commonwealth between December, 9, December, 9, shall be on terms which are no more favorable to the lender than those contained in the American loan. Moreover, the agreement provides specifically that if the interest payment is waived on the American loan a similar waiver must also apply to interest on loans from Empire governments. STERLING BALANCES Closely related to the problem of interest payments is the problem of payments on accumulated sterling balances. It is well known that the United Kingdom has incurred large debts to other countries, particularly to members of the Empire, in the form of short-term balances. These balances arose largely through British military expenditure overseas, as well as through imports which were not matched by exports from the United Kingdom. In prewar years many of the present creditor countries normally held balances in London, partly as a reserve against central bank liabilities partly as working balances for settling international transactions. Today, the sterling balances have reached a level which is many FEDERAL RESERVE BULLETIN

5 REVIEW OF THE MONTH times the size of normal requirements, if such balances were made freely convertible into nonsterling currencies there is no doubt that the dem for outside currencies would be entirely beyond the capacity of the United Kingdom to pay. This means that an understing must be reached with the holders of sterling balances for gradual repayment. In the present financial agreement, the United Kingdom has committed itself to seek such an understing at an early date. Agreements will be sought with all countries holding abnormal sterling balances, regardless of whether they are members of the sterling area or not. While the details of such arrangements will be left to the British, the present financial agreement nevertheless establishes certain broad principles for the settlement of balances of members of the sterling area. Such balances are to be divided into three categories, as follows: "(a) balances to be released at once, convertible into anv currency for current transactions; (b) balances to be similarly released by instalments over a period of years, beginning in 9; (c) balances to be adjusted as a contribution to the settlement of war postwar indebtedness...." Anv balances which do not become the subiect of a settlement within one year of the effective date of the agreement (or, by mutual agreement of the two governments, within a longer period) can be left available to their holders only if they are freely convertible. In practice, this probably means that a large proportion of the balances which are not made the subject of an agreement will be unavailable either for the purchase of goods or for conversion into other currencies. JANUARY 9 Since in the near future the British will not have the resources with which to supply abnormally large exports, payments on balances which are released immediately will have to be made largely from British gold foreign resources. Payments on the balances which are released in instalments, on the other h, will presumably be made mainly from the proceeds of current British exports. In order that such payments will not receive more favorable treatment than payments on the American loan, the financial agreement contains two provisions with respect to released sterling. First, in deciding whether the United Kingdom's income from exports net invisible items in its current balance of payments is inadequate to make an interest payment on the American loan, not more than,0,000 pounds sterling may be considered as a current payment in any one year on account of released sterling balances. Beyond this point, any payments must be regarded as capital transfers. Second, if the annual payment to the United States is reduced by a waiver of interest in any year, a proportionate reduction must be made in the annual instalments of released sterling balances. EXCHANGE ARRANGEMENTS AND THE STERLING AREA During the war the United Kingdom adopted a comprehensive system of exchange controls. This system was emulated by the other countries in the sterling area, an integrated currency system was developed with London at the center. Under this system every effort was made to substitute trade within the area for trade with the rest of the world. The pound sterling remained freely convertible into currencies of the sterling area, but transactions between the sterling area "outside" countries were subjected to strict controls. In addition, all countries in the area turned over their receipts of dollars to London authorities, dollar

6 REVIEW OF THE MONTH payments for imports were then made by application to London. The effect of the sterling area exchange arrangements the so-called dollar pool was thus to make transfers between members of the sterling area outside countries subject to severe limitations administered by centralized control. In view of Britain's difficult financial position, the question arose as to whether these exchange controls would be continued or strengthened in the postwar years. The present financial agreement, if accepted by Congress, will commit the United Kingdom to a system of free exchanges on current account. The sections of the agreement relating to foreign exchange are somewhat complicated, but the effect of the exchange arrangements is to establish a time schedule for making sterling convertible on current account. The first part of this schedule relates to sterling accruing to residents of the United States from current transactions, which will be freely convertible as soon as the agreement becomes effective. Second, within one year of this date, both countries must refrain from imposing restrictions upon payments transfers for current transactions. Exceptions to this second commitment are made for balances accumulated by third countries before the currencies become convertible, for restrictions imposed with the consent of the International Monetary Fund, for restrictions imposed for the purpose of revealing disposing of assets of Germany Japan. Apart from these exceptions, the effect of the exchange arrangements is to remove exchange restrictions upon current British transactions with all countries within one year of the effective date of the agreement, unless the governments of the United States the United Kingdom agree to an extension of time. Both countries agree not to invoke the provisions of the Articles of Agreement of the International Monetary Fund which permit exchange restrictions during a transitional period. This means that if the present agreement is accepted, the International Monetary Fund will begin operations without a protracted period of exchange control on the part of the United Kingdom. These arrangements will be operative until December, 9, by which time it is anticipated that more comprehensive arrangements will have been made under the International Monetary Fund. In addition to the general arrangements concerning exchange restrictions, an understing has also been reached concerning the relations between the United Kingdom other countries of the sterling area. The United Kingdom has agreed to eliminate the so-called dollar pool within a period of one year of tl>e effective date of the agreement, to give residents of the sterling area complete freedom thereafter in the use of both sterling dollars which they acquire on current account. As a result of this understing, the centralized control of exchange transactions between the sterling area the rest of the world which developed during the war will be brought to an end. No time limit applies to this part of the agreement. COMMERCIAL POLICY The financial agreement contains a commitment on the part of each country not to impose or maintain quantitative import restrictions which discriminate against the other country's products during the transition years between the effective date of the agreement the end of 9. Exceptions are made for various special circumstances, the most important of which is the eventuality that the dollar may be declared a scarce FEDERAL RESERVE BULLETIN

7 REVIEW OF THE MONTH currency by the International Monetary Fund. In addition to the limitation on quantitative import controls, significant developments in the field of commercial policy are also contained in the joint statement regarding commercial policy in which both governments agree to support a broad program for relaxing trade barriers. Officials of the United States Government have issued a document containing "Proposals for Consideration by an International Conference on Trade Employment," in the joint statement the United Kingdom has expressed full agreement with all important points in these proposals. The document recognizes the importance of a high level of employment in all countries to the success of a liberal program in the fields of commercial policy, commodity problems, cartel problems, monetary stabilization, investment. In addition, it makes numerous recommendations for the relaxation of specific barriers to trade commerce. Among others, proposals are made for reduction of tariffs tariff preferences, general elimination of import quotas, regulation of cartel practices, of commodity agreements, state trading. Supervision of these arrangements is to be carried out through an International Trade Organization. The importance of this agreement to the future development of foreign trade can hardly be overestimated. Without such an understing between the world's two greatest trading nations, the trade restrictions exchange controls which developed in the 'thirties during the war would be intensified until the world was divided into trading blocs, with each bloc attempting to isolate itself as much as possible from trade outside its own area. On the one h, the countries of the sterling area, including the British Dominions (except Canada), the British Colonies, countries such as India, Egypt, Iraq, Eire would increase trade among themselves at the expense of countries outside the area. On the other h, the countries in the dollar area, including Canada, the United States, the Latin American countries would comprise another bloc, in the course of subsequent developments it would probably be necessary for most of the countries of Europe to choose between these groups of countries. The world would experience a substantial increase in preferential tariff rates, exchange controls, bilateral trade agreements, as countries with balance-of-payments deficits attempted to balance their accounts by purchasing only from countries which promised to buy from them. In this way, foreign trade would be forced into uneconomic channels, private traders would find their activities subjected to increasing state supervision control. It is still too early to foresee accurately the postwar trend of international trade policies in all countries, but the agreement between the United Kingdom the United States should do much to start the trend toward less restricted multilateral trade. In proposing the agreement, both countries have pursued a conscious policy of giving first importance to the long-run development of trade. LEND-LEASE, RECIPROCAL AID, AND SURPLUS PROPERTY In the joint statement regarding lendlease, reciprocal aid, surplus war property, claims, the two governments have agreed upon a final settlement for all of the financial claims arising out of the war. This settlement is to be effected by a total payment of JANUARY 9

8 REVIEW OF THE MONTH 0 million dollars from the United Kingdom to the United States, to be made on the same terms as those on the loan provided bv the financial agreement. The items included in the settlement are: () lend-lease reciprocal aid goods consumed during the war; () lend-lease goods of civilian character remaining in the hs of the British Government (lend-lease inventory); () goods services arranged for under lend-lease reciprocal aid before V-J day but not delivered until after the termination of lendlease (lend-lease pipeline); () surplus property belonging to the United States Government but located in the United Kingdom; () all other financial claims between the two governments arising out of the conduct of the war. By far the largest of these items is the value of lend-lease reciprocal aid consumed during the war. Although figures for lendlease assistance by countries have never been published, it has been estimated that prior to the end of the Japanese war the United Kingdom had received lend-lease aid amounting to between billion dollars. In return, they had provided the United States with four to five billion dollars of reciprocal aid. Net lend-lease assistance to the United Kingdom may thus be estimated at approximately billion dollars. The bulk of these amounts represents goods services consumed during the war, this category of goods has been written off without compensation other than the common victory the willingness of the partners to collaborate in constructing the peace. The actual settlement, amounting to 0 million dollars, covers mainly payment for the lend-lease inventory in the hs of the British Government, plus various other claims counter-claims as listed above. It includes an estimate for the net value of goods services to be delivered by the lend-lease pipeline through December, 9; thereafter, all such transactions will be on a cash basis. The final settlement of lend-lease, reciprocal aid, other financial claims arising from the war should do much to remove the uncertainties which might otherwise have complicated the international trade picture for a long time. THE TRANSITION FROM WAR TO PEACE IN THE UNITED KINGDOM The war its aftermath have left the United Kingdom with two distinct types of international economic problems. One is a short-run, transition problem of restoring the normal trade relations which were seriously disrupted by the war itself. The other is a more basic problem of adjustment to a loss of overseas income an increase in overseas expenditure. With respect to the transition problem, the present level of British exports is far below the level which prevailed in prewar years, Britain's productive resources do not permit an immediate resumption of normal export trade. During the transition period, when exports remain abnormally low, financial assistance will be needed in order to enable the United Kingdom to pay for its import requirements. This problem is common to almost all countries located in the active war theater, but it is particularly acute in the United Kingdom. It has been apparent for some time that the United Kingdom would be forced by its transitional balance-of-payments deficit to choose between two fundamentally different foreign trade policies. First, if no financial assistance were received, it would be necessary for the United Kingdom to continue, to strengthen, the trade FEDERAL RESERVE BULLETIN

9 REVIEW OF THE MONTH exchange controls which developed during the war. Among other things, this policy would result in increased discrimination against imports from countries outside the sterling area. The second alternative open to the United Kingdom is to finance its transitional deficit by means of loans from other countries, particularly the United States Canada, to return to a system of nondiscriminatory multilateral trade as quickly as possible. If the present financial agreement between the United States the United Kingdom is approved by the legislative bodies of both countries, considerable progress will have been made toward the goal represented by the second alternative. In addition to the immediate reconversion restoration of its export industries, the United Kingdom is faced with a more basic problem of adjustment to certain fundamental more persistent changes in its balance of payments. During the interwar period, the value of commodity imports into the United Kingdom was consistently greater than the value of exports. In the fifteenyear period 9 through 98, for example, the average annual commodity import surplus was 8 million pounds sterling. Payment for this import surplus was largely made in three ways: () from income which the British received on their overseas investments; () from income received for shipping services performed for other countries; () from income received for certain financial services, particularly insurance. The war has caused a serious reduction in at least one, perhaps two, of those sources of overseas income. In the first place, it has radically affected the United Kingdom's international investment position. To finance their overseas war expenditures, the British found it necessary to sell a substantial part of their overseas investments. In addition, British assets in both Europe Asia have suffered a considerable amount of war damage. Thefinaleffect of these war losses liquidations upon British income from overseas investment can not be accurately determined at the present time, but most estimates suggest that in the early postwar years income from such assets will be between onehalf two-thirds of its prewar normal level. This would mean a reduction of 0 to 00 million pounds sterling, compared with prewar income from such sources. While the effects of the loss of overseas investments may be offset, to some extent, by prosperous conditions in the postwar world, it seems probable that income from such investments will remain below its prewar level. Moreover, net income from overseas investment will be considerably reduced, over a long period of years, by the payments which the United Kingdom will make on overseas liabilities accumulated during the war during the postwar transition period. A reduction of British shipping income below the prewar level is also possible, although this is much more difficut to estimate. As a result of war losses, which exceeded new building, the British merchant fleet has declined from more than million to less than million deadweight tons. During the immediate postwar years, this decline in the merchant fleet will probably have no serious effect upon British shipping income, since the reduction in tonnage will be offset by higher freight rates by a more complete utilization of existing tonnage. In the more distant future, however, the United Kingdom will be confronted by an important change in its competitive shipping position, owing largely to the wartime growth of United States tonnage. During the years JANUARY 9

10 when the British tonnage was declining, the merchant fleet of the United States was increasing rapidly, until, today, it has reached the unprecedented size of million deadweight tons. Before the war the American merchant fleet represented only one-fifth of the world's total merchant tonnage, whereas the present American fleet accounts for threefifths of the world's total. If our merchant fleet is kept well above its prewar size, some decline in British shipping income, relative to international trade as a whole, is to be expected. THE PREWAR BALANCE OF TRADE AND CHANGES DURING THE WAR These are the important international economic problems which the war has bequeathed to the United Kingdom. To recapitulate briefly, they include a transitional problem of financing imports while exports are being restored to their normal level as well as a more basic problem of offsetting a loss of income from overseas investments ( perhaps from shipping) of servic- EXPORTS AND IMPORTS OF THE UNITED KINGDOM REVIEW OF THE MONTH ing external debts. The significance of these two types of problems is clearly shown in the data for the British balance of payments. Figures for an average annual balance of payments covering the three years 9-8, presented in the table, show that, in the immediate prewar period, the value of exports from the United Kingdom was only slightly larger than half the value of imports. The import surplus was financed largely by the three types of income mentioned above, i.e., by income from overseas investments, by income from shipping, by short-term interest commissions. TABLE. AVERAGE ANNUAL BALANCE OF PAYMENTS OF THE UNITED KINGDOM ON CURRENT ACCOUNT, [In millions of pounds sterling] Imports retained 8 Exports of United Kingdom produce Excess of imports over exports 89 Net government payments overseas : Overseas payments not covered by exports 9 Overseas income other than exports: Net shipping income 0 Net income from overseas investments 0 Short-term interest, commissions, insurance, etc receipts, including net silver exports 8 Leaving an annual deficit of These figures include nonmunitions lend-lease but exclude all munitions. The war brought about an almost threefold increase in the excess imports of the United Kingdom. Between 98 9 the difference between imports exports, excluding munitions, increased from 8 million pounds to,0 million pounds. The increase was attributable partly to an increase in the value of imports partly to a sharp decline in the value of exports. While the value of retained imports increased from 88 million pounds to, million pounds during the years 98 through 9, the value of United Kingdom exports declined from million pounds to 8 million pounds. The FEDERAL RESERVE BULLETIN

11 trade figures for 98 for selected war years are shown in the Chart in Table, below. The increase in the value of imports does not represent an increase in their physical volume. On the contrary, when allowance is made for the average increase in import prices, it appears that the physical volume of imports in 9 was more than 0 per cent below the 98 volume; average import prices increased 9 per cent between 98 9, whereas the increase in the value of imports was only. per cent TABLE. FOREIGN TRADE OF THE UNITED KINGDOM Year [In millions of pounds sterling] Retained imports S8,, REVIEW OF THE MONTH Exports of U.K. produce 8 Import surplus 8 0,0 The decline in the physical volume of exports was even more striking. The 9 volume of exports of United Kingdom merchise was only per cent of the 98 level. The effect of this decline upon the total value of exports was partly offset by a 8 per cent increase in average export prices. As a result, the value of exports in 9 was per cent of the prewar level even though the volume had declined to less than onethird of the 98 level. THE NEED FOR MORE EXPORTS From these figures it is apparent that the increase in the British import surplus during the war was a result of two factors. First, the decline in the physical volume of exports was much greater than the decline in the volume of imports. And, second, import prices increased somewhat more than export prices. The effects of both of these factors will have to be overcome in the reestablishment of Britain's foreign trade. To this end, the United Kingdom intends to restore the physical volume of exports to normal levels as rapidly as possible. In the first two or three years after the war, adequate markets will be available for almost any exports which the British produce. The backlog of dem for manufactured goods of all types will be large, many countries may be expected to use part of their external reserves in the purchase of goods in the United Kingdom. The restoration of British exports will therefore be primarily a problem of supply rather than a problem of markets; exports can be increased as rapidly as the United Kingdom can increase production in the export trades. The time required to establish a balanced position thus depends to a large extent upon the speed of reconversion in such fields as machinery, iron steel manufactures, electrical goods, motor vehicles, textiles, other export industries. The industrial character of the export problem is shown by the fact that in 98 three-fourths of the value of British-made exports was attributable to articles wholly or mainly manufactured The restoration of exports is complicated by the fact that most export industries produce for home consumption as well as for sales abroad, the domestic dem will be large at a time when a large growth of exports is urgently needed. Hence, government controls of materials consumption can not be removed until production is adequate for both exports home dem. In the absence of such controls there is no doubt that many products required to restore JANUARY 9

12 REVIEW OF THE MONTH exports would be diverted to the home market. And even with controls in force, it is inevitable, would appear to be desirable, that a part of the increased output of British manufactures be used for home consumption. The pressing nature of the home dem is indicated to some extent by the low wartime levels of British consumption; in 9, the physical volume of civilian consumption was 0 per cent lower than the volume of consumption in 98. In many individual types of consumption, the decline was even more pronounced. The volume of civilian clothing purchased in 9, for example, was only 0 per cent of the 98 volume. In view of the low level of living stards in the United Kingdom, it is to be expected that the re-establishment of the export trades will require more time than would be needed for reconversion alone. [The British must produce not only for export but also for the restoration of home consumption.] Apart from the wartime decline in exports, the problem of achieving a balanced international position is further complicated, as noted above, by the large increase in export import prices; such prices are now more than 90 per cent above prewar levels. Even if the physical volume of exports were restored to the prewar level, the value, in pounds, of the excess imports would be nearly twice the prewar import surplus as a result of the price rise. This would not be particularly serious if the invisible items, such as income from shipping from overseas investments increased proportionately, but some of these items, such as income from overseas bonds, will be relatively insensitive to price changes. When, in addition, the loss of overseas assets, the accumulation of external debt the decline in the size of the British merchant fleet are taken into account, it seems clear that a considerable deficit will remain in the British balance of payments even if exports imports are restored to their prewar levels. This means that the United Kingdom can not achieve a balanced international position, at prewar levels of imports, without a substantial increase in exports above the prewar volume. In other words, the British are faced With the problem not only of re-establishing their former export trade, but also of increasing it considerably. The exact size of the required increase in exports, relative to prewar, can not be determined accurately, but the British have repeatedly said, in both official unofficial statements, that they must increase their exports 0 to per cent above prewar in order to enable the country to pay for imports of the prewar volume. RELAXING IMPORT CONTROLS In the recent agreements, as noted above, both the United Kingdom the United States have pledged themselves to a gradual reduction of direct trade controls, such as tariffs import quotas. In view of Britain's difficult position, however, it is clear that the relaxation of such controls (as distinct from the removal of discrimination) will necessarily be a slow process. Even after the United Kingdom achieves a balanced international position, it may be necessary to maintain certain import restrictions for a considerable period of time, for otherwise this balance would be destroyed. The balanced position described above is in terms of the prewar volume of imports, if all import controls were removed the present large dem for imports would carry them far above the prewar volume. This is true for several reasons. The country has suffered a loss of domestic assets, 0 FEDERAL RESERVE BULLETIN

13 REVIEW OF THE MONTH roughly estimated at,000 million pounds, through war damage depreciation. Replacement of these assets will naturally create a large dem for imports, particularly for building materials. Quite apart from the dem for imports for reconstruction, however, the normal dem for imports in the postwar period will considerably exceed the prewar dem. There is little doubt that the postwar level of output in the United Kingdom will be considerably greater than it was in the prewar period. In the absence of import controls, this higher level of output would normally lead to an increased dem for imported raw materials while the associated increase in income would stimulate dem for imported consumer goods. It has been estimated that the United Kingdom will be capable of producing a net national income of. billion pounds, stated in 98 prices. This represents a per cent increase over the 98 level of output. There are reasons for believing that the normal increase in the dem for imports will be smaller than the relative growth of income, even if a high stard of living is achieved. In the first place, more than 0 per cent of prewar imports consisted of foodstuffs, it is unlikely that the dem for these products will increase in proportion to the increase in real income. Second, import prices have increased considerably more than domestic prices, it is expected that this will lead to an attempt, wherever possible, to substitute home goods for imports. Even after making allowance for these facts, however, it is probable that a per cent increase in domestic output in the United Kingdom would increase the normal dem for imports by as much as per cent. If, therefore, no greater controls were maintained than those existing before the war, the value of postwar imports, at. present prices, would be about,900 million pounds. This suggests that it will not be possible to abon all import controls imposed during the war at any time in the immediate postwar period. It may be expected that when Great Britain attains a balanced international position it will be on the basis of a volume of imports below the level corresponding by prewar stards, to the country's national income. Consequently there will be a tendency for imports to rise to upset the balance unless some of the restrictions imposed during the war are maintained for some time. LONG-RUN PROSPECTS The proposed American loan to the United Kingdom, as noted above, is intended primarily to meet the deficit in Britain's balance of payments during the period of transition from a war economy to a pea e economy. Once this period of readjustment has passed, it is anticipated that the United Kingdom will be able to pay for its necessary imports with the proceeds of exports with income from overseas investments, shipping, insurance, etc. while at the same time making payments of principal interest on both its foreign loans its accumulated sterling obligations. With a sound program for rebuilding modernizing British industries, it should be possible for them to exp exports sufficiently to realize this goal. And once a balanced position is achieved, gradual payment of its overseas obligations will not place a serious strain on the British economy. A balanced international position will not occur automatically, however, but only as the result of a well-planned policy of trade expansion. A prerequisite to trade expansion is modernization of British industry. JANUARY 9

14 REVIEW OF THE MONTH Many British industries have not kept pace with their American counterparts in the adoption of technological improvements. As a result, costs of production in the United Kingdom have tended to increase relative to costs for similar products in the United States. Recent studies have shown that capital per worker output per worker in such important industries as coal textiles are considerably lower in the United Kingdom than in the United States. In the British coal industry, the problem has been further aggravated by the depletion of coal reserves, the necessity of using highercost deposits. Since coal, textiles, textile products accounted for more than one-fourth of the value of prewar exports, it would appear that modernization of these industries is essential to the establishment of postwar exports on abound basis. The British are well aware of this, are making extensive plans for improving the efficiency not only of coal textile production but of many other industries as well. Factories which suffered war damage will be rebuilt with up-to-date equipment, the replacement of depreciated capital, long delayed by the war, will add further to Britain's modern industrial plant. All of these developments suggest that the productivity of the capital with which the United Kingdom emerges from her period of reconversion reconstruction will be considerably greater than that of her prewar capital. With modern efficient plant equipment a conscious effort to adapt production to the changing requirements of Britain's customers the competitive position of the United Kingdom in world markets should be better than it was before the war. But British exports obviously can not be kept at a high level without a high sustained level of world income. A prolonged world depression, such as was experienced in the early 'thirties, would seriously impair the ability of the United Kingdom to liquidate its external debts, might well lead to an intensification of the trade controls exchange restrictions which the present agreement between the United States the United Kingdom is intended to reduce. The establishment maintenance of this high level of world income will depend to a large extent upon developments in the United States. The value of United States output is a large proportion of world output some estimates place the proportion as high as one-third. Although imports into the United States are small relative to domestic output, they nevertheless constitute a significant part of world trade as a whole. Fluctuations in the American dem for foreign goods therefore play an important part in the state of world markets as a whole. It is true, of course, that export trade of the United Kingdom in prewar years was more dependent upon certain other countries than upon the United States. In the three years preceding the war, British exports to the United States accounted for only five to seven per cent of her total exports. Nevertheless, the United States was the most important customer of the United Kingdom in those years outside the British Empire. Moreover, British exports as a whole are indirectly much more dependent upon economic activity in the United States than these figures indicate. When a depression reduces the American dem for foreign goods, the British suffer not only from a direct reduction in their exports to the United States, but also from an indirect effect through FEDERAL RESERVE BULLETIN

15 REVIEW OF THE MONTH other countries. South American countries, for example, may be unable to buy from the United Kingdom because their sales to the United States have been reduced. It has been estimated that these indirect effects are about twice as important as the direct effects. If this is true, a fifty per cent reduction in American imports as a whole would involve a ten to fifteen per cent reduction in total exports to the United Kingdom. In practice, the repercussion would probably be even greater, since a depression in the United States might easily start a downward spiral in other countries. These relationships confirm the fact, often mentioned in recent discussions of foreign trade repeated in the "Proposals for Consideration by an International Conference on Trade Employment," that the long-run success of the Anglo-American trade financial program is dependent upon a high sustained level of world income. In the temporary period of reconstruction reconversion, the gap in the British balance of trade will be offset by the financial assistance received from the United States from other countries. But in the long run, after lending ceases repayment begins, it is probable that a balanced position for the United Kingdom will be maintained without restrictive controls only if the world dem for British goods is kept at a high level, this means if the world particularly the United States succeeds in maintaining prosperity. JANUARY 9

16 ANGLO-AMERICAN TRADE AND FINANCIAL The documents below, resulting from the trade financial discussions between officials of the United States United Kingdom Governments meeting in Washington, were released on December, 9, by the two governments. The financial agreement was approved by the British House oj Commons on December by the House oj Lords on December 8 will be submitted to Congress in the near future? STATEMENT MADE IN WASHINGTON BY THE PRESIDENT OF THE UNITED STATES AND IN LONDON BY THE PRIME MINISTER OF GREAT BRITAIN ON DECEMBER, 9 The economic financial discussions between officials of the United States United Kingdom Governments meeting in Washington have now been completed. These discussions have been concerned with the major problems affecting the basic economic financial relations between the two countries, in the light of the provisions of Article VII of the Mutual- Aid Agreement between their governments signed February, 9. They have covered the questions of financial assistance from the United States to the United Kingdom, the demobilization of wartime trade monetary restrictions, the settlement of lend-lease, the disposal of surplus war property in the United Kingdom owned by the United States,, finally, long-range commercial policies in the broad sense, embracing the fields of trade barriers discriminations, policies in respect of commodities in world surplus, cartels, an international trade organization, international aspects of domestic measures to maintain employment. The purpose of the discussions has been to arrive at mutually advantageous solutions of these problems which the two governments would commend to the peoples legislatures of the two countries to the world as a whole. Both sides have been fully conscious of the significance to other countries, as well as their own, of the outcome of these discussions, they have from the beginning had continuously in view the common interest of their governments in establish- There is also given on pages 0- of this issue of the BULLETIN the text of a British White Paper published in connection with the Anglo-American negotiations. ing a world trade monetary system from which the trade of all countries can benefit within which the trade of all countries can be conducted on a multilateral, nondiscriminatory basis. The discussions have been successful. Agreement has been reached, subject to the approval of the legislatures of both countries, for the extension by the United States to the United Kingdom of a line of credit of $,0,000,000 on the terms stated in the financial agreement signed this day, for the following purposes: to facilitate purchases by the United Kingdom of goods services from the United States, to assist the United Kingdom to meet transitional postwar deficits in its current balance of payments, to help the United Kingdom to maintain adequate reserves of gold dollars, to assist the United Kingdom to assume the obligations of multilateral trade. This credit would make it possible for the United Kingdom to relax import exchange controls, including exchange arrangements affecting the sterling area, generally to move forward with the United States other countries toward the common objective of exped multilateral trade. Agreement has been reached for the final settlement of lend-lease reciprocal aid, the disposal of surplus war property in the United Kingdom owned by the United States, the final settlement of the claims of each government against the other arising out of the conduct of the war. Agreement has been reached on the broad principles of commercial policy for which the two governments will seek general international support. These arrangements, if carried out, will put an end to the fear of an economically divided world; will make possible, throughout the world, the expansion of employment of the production, exchange consumption of goods; will bring into being, for the first time, a common code of equitable rules for the conduct of international trade policies relations. The realization of these proposals will depend upon the support given them by the peoples legislatures of the United States the United Kingdom; where they envisage measures requiring broad international collaboration, the support of other countries. The following documents resulting from these discussions are being issued by the two governments: FEDERAL RESERVE BULLETIN

17 ANGLO-AMERICAN TRADE AND FINANCIAL NEGOTIATIONS Financial agreement. Joint statement regarding the understing reached on commercial policy. Joint statement regarding settlement for lendlease reciprocal aid, surplus war property, claims. JOINT STATEMENT BY THE UNITED STATES AND THE UNITED KINGDOM REGARDING THE UNDERSTANDING REACHED ON COMMERCIAL POLICY The Secretary of State of the United States has made public today a document setting forth certain "Proposals for Consideration by an International Conference on Trade Employment". These proposals have the endorsement of the Executive branch of the Government of the United States have been submitted to other governments as a basis for discussion preliminary to the holding of such a conference. Equally, the Government of the United Kingdom is in full agreement on all important points in these proposals accepts them as a basis for international discussion; it will, in common with the United States Government, use its best endeavors to bring such discussions to a successful conclusion, in the light of the views expressed by other countries. The two Governments have also agreed upon the procedures for the international negotiation implementation of these proposals. To this end they have undertaken to begin preliminary negotiations at an early date between themselves with other countries for the purpose of developing concrete arrangements to carry out these proposals, including definitive measures for the relaxation of trade barriers of all kinds. These negotiations will relate to tariffs preferences, quantitative restrictions, subsidies, State trading, cartels, other types of trade barriers treated in the document published by the United States referred to above. The negotiations will proceed in accordance with the principles laid down in that document. JOINT STATEMENT REGARDING SETTLE- MENT FOR LEND-LEASE, RECIPROCAL AID, SURPLUS WAR PROPERTY AND CLAIMS. The Governments of the United States the United Kingdom have reached an understing for the settlement of Lend-Lease Reciprocal Aid, for the acquisition of United States Army Navy surplus property, the United States interest in installations, located in the United Kingdom, for the final settlement of the financial claims of each government against the other arising out of the conduct of the war. Specific agreements necessary to implement these understings, setting forth the terms in detail, consistent herewith, are in the course of preparation will shortly be completed.. This settlement for Lend-Lease Reciprocal Aid will be complete final. In arriving at this settlement both Governments have taken full cognizance of the benefits already received by them in the defeat of their common enemies. They have also taken full cognizance of the general obligations assumed by them in Article VII of the Mutual Aid Agreement of February, 9, the understings agreed upon this day with regard to commercial policy. Pursuant to this settlement, both Governments will continue to discuss arrangements for agreed action for the attainment of the economic objectives referred to in Article VII of the Mutual Aid Agreement. The Governments expect in these discussions to reach specific conclusions at an early date with respect to urgent problems such as those in the field of telecommunications civil aviation. In the light of all the foregoing, both Governments agree that no further benefits will be sought as consideration for Lend-Lease Reciprocal Aid.. The net sum due from the United Kingdom to the United States for the settlement of Lend- Lease Reciprocal Aid, for the acquisition of surplus property, the United States interest in installations, located in the United Kingdom, for the settlement of claims shall be $0,000,000 subject to the account adjustment referred to below. This amount consists of (a) a net sum of $8,000,000 representing the difference between the amount of the services supplies furnished or to be furnished by each Government to the other Government after V-J Day through Lend-Lease Reciprocal Aid channels, less the net sum due to the United Kingdom under the claims settlement, (b) a net sum of $,000,000 for all other Lend-Lease Reciprocal Aid items, for surplus property the United States interest in installations located in the United Kingdom owned by the United States Government. The actual amounts due to the respective Governments for items included in (a) above other than claims will, however, be ascertained by accounting in due course, the total sum of $0,000,000 will be adjusted for any difference between the sum of $8,000,000 mentioned above, the actual sum found to be due. All new transactions between the two Governments after December, 9, will be settled by cash payment. JANUARY 9

18 ANGLO-AMERICAN TRADE AND FINANCIAL NEGOTIATIONS. The total liability found to be due to the Government of the United States will be discharged on the same terms as those specified in the Financial Agreement concluded this day for the discharge of the credit provided therein.. In addition to the financial payments referred to above, the two Governments have agreed upon the following: (a) Appropriate non-discriminatory treatment will be extended to United States nationals in the use disposition of installations in which there is a United States interest; (b) Appropriate settlements for the Lend-Lease interest in installations other than in the United Kingdom the Colonial Dependencies will be made on disposal of the installations; (c) The United States reserves its right of recapture of any Lend-Lease articles held by United Kingdom Armed Forces, but the United States has indicated that it does not intend to exercise generally this right of recapture; (d) Disposals for military use to forces other than the United Kingdom Armed Forces of Lend- Lease articles held by the United Kingdom Armed Forces at V-J Day, disposals for civilian use other than in the United Kingdom the Colonial Dependencies of such Lend-Lease articles, will be made only with the consent of the United States Government any net proceeds will be paid to the United States Government. The United Kingdom Government agrees that except to a very limited extent it will not release for civilian use in, or export from, the United Kingdom the Colonial Dependencies Lend-Lease articles held by the United Kingdom Armed Forces; (e) The Government of the United Kingdom will use its best endeavors to prevent the export to the United States of any surplus property transferred in accordance with this understing.. The Government of the United Kingdom agrees that, when requested by the Government of the United States from time to time prior to December, 9, it will transfer, in cash, pounds sterling to an aggregate dollar value not in excess of $0,000,000, at the exchange rates prevailing at the times of transfer, to be credited against the dollar payments due to the Government of the United States as principal under this settlement. The Government of the United States will use these pounds sterling exclusively to acquire l or to acquire or construct buildings in the United Kingdom the Colonial Dependencies for the use of the Government of the United States, for carrying out educational programs in accordance with agreements to be concluded between the two Governments.. The arrangements set out in this statement are without prejudice to any settlements concerning Lend-Lease Reciprocal Aid which may be negotiated between the Government of the United States the Governments of Australia, New Zeal, the Union of South Africa, India. FINANCIAL AGREEMENT BETWEEN THE GOVERNMENTS OF THE UNITED STATES AND THE UNITED KINGDOM It is hereby agreed between the Government of the United States of America the Government of the United Kingdom, of Great Britain Northern Irel as follows:. Effective date of the Agreement. The effective date of this Agreement shall be the date on which the Government of the United States notifies the Government of the United Kingdom that the Congress of the United States has made available the funds necessary to extend to the Government of the United Kingdom the line of credit in accordance with the provisions of this Agreement.. Line of credit. The Government of the United States will extend to the Government of the United Kingdom a line of credit of $,0,000,000 which may be drawn upon at any time between the effective date of this Agreement December, 9, inclusive.. Purpose of the line of credit. The purpose of the line of credit is to facilitate purchases by the United Kingdom of goods services in the United States, to assist the United Kingdom to meet transitional postwar deficits in its current balance of payments, to help the United Kingdom to maintain adequate reserves of gold dollars, to assist the Government of the United Kingdom to assume the obligations of multilateral trade, as' defined in this other agreements.. Amortization interest. (i) The amount of the line of credit drawn by December, 9, shall be repaid in 0 annual installments beginning on December, 9, with interest at the rate of per cent per annum. Interest for the year 9 shall be computed, on the amount outsting on December, 9, for each year thereafter, interest shall be computed on the amount outsting on January of each such year. Forty-nine annual installments of principal repayments interest shall be equal, calculated at FEDERAL RESERVE BULLETIN

19 ANGIO-AMERICAN TRADE AND FINANCIAL NEGOTIATIONS the rate of $,8,000 for each $,000,000,000 of the line of credit drawn by December, 9, the fiftieth annual installment shall be at the rate of $,80,. for each such $,000,000,000. Each installment shall consist of the full amount of the interest due the remainder of the installment shall be the. principal to be repaid in that year. Payments required by this section are subject to the provisions of section. (ii) The Government of the United Kingdom may accelerate repayment of the amount drawn under this line of credit.. Waiver of interest payments. In any year in which the Government of the United Kingdom requests the Government of the United States to waive the amount of the interest due in the installment of that year, the Government of the United States will grant the waiver if: (a) the Government of the United Kingdom finds that a waiver is necessary in view of the present prospective conditions of international exchange the level of its gold foreign exchange reserves (b) the International Monetary Fund certifies that the income of the United Kingdom from home-produced exports plus its net income from invisible current transactions in its balance of payments was on the average over the five preceding calendar years less than the average annual amount of United Kingdom imports during 9-8, fixed at ; 8 million, as such figure may be adjusted for changes in the price level of these imports. Any amount in excess of ^,0,000 released or paid in any year on account of sterling balances accumulated to the credit of overseas governments, monetary authorities banks before the effective date of this Agreement shall be regarded as a capital transaction therefore shall not be included in the above calculation of the net income from invisible current transactions for that year. If waiver is requested for an interest payment prior to that due in 9, the average income shall be computed for the calendar years from 90 through the year preceding that in which the request is made.. Relation of this line of credit to other obligations. (i) It is understood that any amounts required to discharge obligations of the United Kingdom to third countries outsting on the effective date of this Agreement will be found from resources other than this line of credit. (ii) The Government of the United Kingdom will not arrange any long-term loans from governments within the British Commonwealth after December, 9, before the end of 9 on terms more favorable to the lender than the terms of this line of credit. (iii) Waiver of interest will not be requested or allowed under section in any year unless the aggregate of the releases or payments in that year of sterling balances accumulated to the credit of overseas governments, monetary authorities banks (except in the case of colonial dependencies) before the effective date of this Agreement is reduced proportionately, unless interest payments due in that year on loans referred to in (ii) above are waived. The proportionate reduction of the releases or payments of sterling balances shall be calculated in relation to the aggregate released paid in the most recent year in which waiver of interest was not requested. (iv) The application of the principles set forth in this section shall be the subject of full consultation between the two governments as occasion may arise.. Sterling area exchange arrangements. The Government of the United Kingdom will complete arrangements as early as practicable in any case not later than one year after the effective date of this Agreement, unless in exceptional cases a later date is agreed upon after consultation, under which immediately after the completion of such arrangements the sterling receipts from current transactions of all sterling area countries (apart from any receipts arising out of military expenditure by the Government of the United Kingdom prior to December, 98, to the extent to which they are treated by agreement with the countries concerned on the same basis as the balances accumulated during the war) will be freely available for current transactions in any currency area without discrimination; with the result that any discrimination arising from the so-called sterling area dollar pool will be entirely removed that each member of the sterling area will have its current sterling dollar receipts at its free disposition for current transactions anywhere. 8. exchange arrangements. (i) The Government of the United Kingdom agrees that after the effective date of this Agreement it will not apply exchange controls in such a manner as to restrict (a) payments or transfers in respect of products of the United States permitted to be im- JANUARY 9

20 ANGLO-AMERICAN TRADE AND FINANCIAL NEGOTIATIONS ported into the United Kingdom or other current transactions between the two countries or (b) the use of sterling balances to the credit of residents of the United States arising out of current transactions. Nothing in this paragraph (i) shall affect the provisions of Article VII of the Articles of Agreement of the International Monetary Fund when those Articles have come into force. (ii) The Governments of the United States the United Kingdom agree that not later than one year after the effective date of this Agreement, unless in exceptional cases a later date is agreed upon after consultation, they will impose no restrictions on payments transfers for current transactions. The obligations of this paragraph (ii) shall not apply: (a) to balances of third countries their nationals accumulated before this paragraph (ii) becomes effective; or (b) to restrictions imposed in conformity with the Articles of Agreement of the International Monetary Fund, provided that the Governments of the United Kingdom the United States will not continue to invoke the provisions of Article XIV, Section of those Articles after this paragraph (ii) becomes effective, unless in exceptional cases after consultation they agree otherwise; or (c) to restrictions imposed in connection with measures designed to uncover dispose of assets of Germany Japan. (iii) This section section 9, which are in anticipation of more comprehensive arrangements by multilateral agreement, shall operate until December, Import arrangements. If either the Government of the United States or the Government of the United Kingdom imposes or maintains quantitative import restrictions, such restrictions shall be administered on a basis which does not discriminate against imports from the other country in respect of any product; provided that this undertaking shall not apply in cases in which (a) its application would have the effect of preventing the country imposing such restrictions from utilizing, for the purchase of needed imports, inconvertible currencies accumulated up to December, 9, or (b) there may be special necessity for the country imposing such restrictions to assist, by measures not involving a substantial departure from the general rule of non-discrimination, a country whose economy has been disrupted by war, or (c) either government imposes quantitative restrictions having equivalent effect to an exchange restriction which that government is authorized to impose in conformity with Article VII of the Articles of Agreement of the International Monetary Fund. The provisions of this section shall become effective as soon as practicable but not later than December, Accumulated sterling balances. (i) The Government of the United Kingdom intends to make agreements with the countries concerned, varying according to the circumstances of each case, for an early settlement covering the sterling balances accumulated by sterling area other countries prior to such settlement (together with any future receipts arising out of military expenditure by the Government of the United Kingdom to the extent to which they are treated on the same basis by agreement with the countries concerned). The settlements with the sterling area countries will be on the basis of dividing these accumulated balances into three categories: (a) balances to be released at once convertible into any currency for current transactions, (b) balances to be similarly released by installments over a period of years beginning in 9, (c) balances to be adjusted as a contribution to the settlement of war postwar indebtedness in recognition of the benefits which the countries concerned might be 'expected to gain from such a settlement. The Government of the United Kingdom will make every endeavor to secure the early completion of these arrangements. (ii) In consideration of the fact that an important purpose of the present line of credit is to promote the development of multilateral trade facilitate its early resumption on a non-discriminatory basis, the Government of the United Kingdom agrees that any sterling balances released or otherwise available for current payments will, not later than one year after the effective date of this Agreement unless in special cases a later date is agreed upon after consultation, be freely available for current transactions in any currency area without discrimination.. Definitions. For the purposes of this Agreement: (i) The term "current transactions" shall have the meaning prescribed in Article XIX (i) of the Articles of Agreement of the International Monetary Fund. 8 FEDERAL RESERVE BULLETIN

21 ANGLO-AMERICAN TRADE AND FINANCIAL NEGOTIATIONS (ii) The term "sterling area" means the United Kingdom the other territories declared by the Defence (Finance) (Definition of Sterling Area) (No. ) Order, 9, to be included in the sterling area, namely "the following territories excluding Canada Newfoundl, that is to say (a) any Dominion, (b) any other part of His Majesty's dominions, (c) any territory in respect of which a mate on behalf of the League of Nations has been accepted by His Majesty is being exercised by His Majesty's Government in the United Kingdom or in any Dominion, (d) any British protectorate or protected State, (e) Egypt, the Anglo-Egyptian Sudan Iraq, (f) Icel the Faroe Isls.". Consultation on Agreement. Either government shall be entitled to approach the other for a reconsideration of any of the provisions of this Agreement, if in its opinion the prevailing conditions of international exchange justify such reconsideration, with a view to agreeing upon modifications for presentation to their respective legislatures. Signed in duplicate at Washington, District of Columbia, this th day of December, 9. For the GOVERNMENT OF THE UNITED STATES OF AMERICA (S.) FRED M. VINSON Secretary of the Treasury For the GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND (S.) HALIFAX His Majesty's Ambassador Extraordinary Plenipotentiary at Washington JANUARY 9 9

22 BRITISH WHITE PAPER PUBLISHED IN CONNECTION WITH ANGLO-AMERICAN FINANCIAL AGREEMENT Given below is the text of a British Government White Paper (Cmd. 0) setting forth statistical material concerning the financial position of the United Kingdom, which was published in December 9 in connection with the Anglo-American financial Agreement. The data included in the White Paper had previously been presented for consideration at the Washington negotiations between officials of the United States the United Kingdom Governments. I. THE NATURE OF THE PROBLEM. In the Anglo-American discussions on commercial financial questions much study has been devoted to the factual material which is available, in order to ascertain the magnitude of the problem the best fairest means of solving it in the light of all the relevant circumstances. The data which have been furnished are set out in detail in the appendices which follow. The significance of these may be made clearer by some preliminary observations.. The problem facing the United Kingdom has two aspects, both of them directly arising out of the role undertaken by the United Kingdom in the combined war effort. The first of these arises out of the deficit in the external balance of payments of the United Kingdom which seems certain to develop during the period of uncertain duration, but provisionally estimated at from three to five years, before internal external adjustments can be made in the British economy adequate to restore equilibrium.. The second arises out of the indebtedness of the United Kingdom to overseas countries in the shape of sterling balances other liabilities accumulated during the war. The causes leading to the growth of these liabilities are set out in this paper, together with the statistics of their present magnitude. II. THE CAUSES OF THE PROSPECTIVE OVERSEAS DEFI- CIT OF THE UNITED KINGDOM IN THE TRANSITIONAL PERIOD. The immediate problem is the direct legacy of the United Kingdom effort in the war. The foundations of the United Kingdom's normal economic life are a high degree of industrial specialisation, a substantial dependence upon imported foodstuffs raw materials, the maintenance of a volume of export trade of other sources of foreign exchange earnings adequate to pay for those imports. Before the war the United Kingdom was dependent on imports for two-thirds of the food consumed by its people, apart from coal, for the bulk of the raw materials used by its industries. But the United Kingdom paid for such requirements by the proceeds of its exports by the earnings of its shipping other services rendered to overseas countries of its investments abroad.. The effect of the war was to bring about a severe dislocation of the United Kingdom position in several respects, which will inevitably take some years to remedy; namely, loss of exports, loss of shipping, loss of overseas investments, increase of overseas debt, loss of reserves.. Loss of Exports. The loss of United Kingdom export trade during the war was to a large extent the consequence of a deliberate act of policy. An attempt to maintain United Kingdom export trade at a high level would have stood in the way of the full degree mobilisation of manpower, production, materials for the direct war effort which the situation of the United Kingdom required as being the base of operations nearest to Germany. But food, munitions, raw materials still had to be imported. The operation of Lend-Lease from the United States, Mutual Aid other contributions from Canada, sterling credits from other countries, made this compatible with the deliberate abonment of the export trade. The decision, that the United Kingdom should in effect disregard the maintenance of export trade in favour of the maximum concentration of resources on the armed forces war industry, undoubtedly constituted a rational proper allocation of effort between ^the Allies which was willingly accepted by the United Kingdom in the interests of winning the war. But the outcome has been that British export trade shrank to less than one-third of its prewar volume,, despite some recovery, may be expected to cover in 9 not more than one-half of the essential expenditure of the country on the purchase of a minimum volume of imports on other necessary payments overseas. Thus with the end of the war the termination of Lend-Lease Mutual Aid a period of acute difficulty must be faced until the reconversion of industry, the release of manpower the recovery expansion of export markets 0 FEDERAL RESERVE BULLETIN

23 BRITISH WHITE PAPER ANGLO-AMERICAN FINANCIAL AGREEMENT have begun to result in a substantial flow of exports, (See Appendix I.). Loss of Shipping. More than half of the prewar tonnage of British merchant shipping was lost during the war. Allowing for new building in the war, United Kingdom-owned tonnage is now less than three-quarters of the prewar figure. Until the fleet has been exped carrying trades aboned in the war have been recovered, the net income available from shipping service to supplement United Kingdom purchasing power abroad will be greatly below prewar level. (See Appendix II.) 8. Loss of Overseas Investments. It is estimated that the net income from overseas investments in 9 will be less than half that received in 98. This reflects the extensive liquidation of foreign securities, the repatriation of loans by overseas debtors, the increased interest payments to holders of sterling debts caused by the heavy war expenditure which the United Kingdom has had to incur overseas. Thus nearly all the marketable United States dollar securities of United Kingdom nationals were compulsorily acquired for sale or pledging in order to finance the purchase of munitions the construction of war plans in the United States of America before the operation of the Lend-Lease Act. (See Appendix HI.) 9. The Increase of Overseas Debt. The interval of time which must inevitably elapse, before the export trade can be recovered the loss of income from investments shipping can be made good, would have brought about a position of serious difficulty for the United Kingdom, even if overseas expenditure had remained at prewar levels. But the exigencies of the war involved the United Kingdom in enormous cash expenditure overseas. Large military forces had to be maintained in the Middle East to engage the Germans there: even larger forces operated against the Japanese in Burma the Far East. Supplies on an immense scale had to be acquired in addition to those furnished under Lend-Lease Mutual Aid to sustain these forces. All these involved a great outpouring of expenditure in local currencies, particularly in India, Egypt Palestine, whether on troop pay, the building of aerodromes, railways or roads, or the payment of local labour, or on the acquisition of supplies. Such expenditure could be covered only to a limited extent by exports or by the liquidation of investments: the result has been that the United Kingdom has incurred huge debts in the form of accumulated sterling balances. (See Appendix IV.) Nor can this substantial burden of overseas payments be brought to an end with the day of victory. There will inevitably remain heavy commitments to be met overseas before all British troops can be withdrawn from the distant fronts on which they have been engaged. Thus apart altogether from the repayment of the war debts a further substantial, though temporary, burden of current expenditure abroad has to be sustained at a time when British exports other sources of overseas income are quite insufficient to finance even an import programme on the barest minimum level. 0. Loss of Reserves. Nor has the United Kingdom sufficient reserves from which to fill the gap. The gold dollar holdings of the United Kingdom of the other countries in the Sterling Area were mobilised freely spent in the early critical days of -9 mainly for the purchase of vital war supplies from the United States of America. During April 9, soon after the passage of the Lend-Lease Act but before its effects could be felt, the reserves fell to only million dollars. They have now to some extent been built up again largely because the pay of United States forces in the Sterling Area brought considerable dollar sums into the country, a state of affairs which of course ceases with, or soon after, the end of hostilities. But they are still below the prewar level, are manifestly inadequate in relation to the immediate needs of the United Kingdom itself to the problem of releasing the accumulated sterling balances which is discussed below. (See Appendix V.) III. THE MAGNITUDE OF THE OVERSEAS DEFICIT LIKELY TO ARISE BEFORE EQUILIBRIUM Is RESTORED. It is estimated that the increase in the volume of exports over the prewar level which will be necessary to pay for the prewar volume of imports, after allowing for the decline in other sources of external earnings, is of the order of 0 per cent. Something more than this will, however, be necessary to reach maintain full equilibrium. For the above calculation makes no allowance for the following factors: (i) By the end of the transitional period more than 0 to years will have elapsed since the dates taken as the prewar stard of reference. During this period the number of adults separate families in the United Kingdom will have increased appreciably. Moreover, it is expected that the stard of output efficiency which will have been reached should bring some improvement in the stard of life some increase in the level of industrial production, with a consequent increase in the payment for imports of all kinds. Thus in the absence of restrictive measures of the type which it is hoped to avoid, it is likely, indeed ob- JANUARY 9

24 BRITISH WHITE PAPER ANGLO-AMERICAN FINANCIAL AGREEMENT viously desirable, that the volume of imports will tend to exceed the prewar level. (ii) No provision has been included for the repayment of war postwar debts. (iii) No provision has been included for the working capital to allow credit to foreign purchasers or for other expenditure overseas inevitably required in the course of building up a great volume of new trade.. It may be, therefore, that the full restoration of a reliable equilibrium, which can persist without measures of restriction or the other defensive mechanisms of the type with which it is hoped to dispense, may require a volume of exports nearer per cent than 0 per cent in excess of the prewar level.. It is the aim of the United Kingdom Government to attain this target at the earliest possible date to undertake, with the same energy as in time of war, whatever measure of industrial marketing reorganisation reconstruction may be necessary. But it is impossible to guess with any precision the date at which sufficient success will have been achieved. It is hoped that work on export orders will have attained the prewar level by the second half of 9, but the period of production the time lag in payment mean that actual cash receipts will not attain the corresponding level until after the end of the year. This moreover, represents so rapid a reconversion from the very low level of export activity existing in 9 that it must be regarded as optimistic.. factors aftecting the future balance of payments have been discussed above; in particular, loss of investment income loss of shipping earnings. A further factor of considerable importance in the immediate future is Government expenditure overseas. Before the war, such expenditure was only an insignificant figure. During the war, as explained above, it has risen to a very large figure; although it will fall rapidly with the end of the war, it can not be abruptly completely terminated. A period must elapse before troops, due for demobilisation, can be brought home; some time will be needed for all commitments incurred during the war to be brought to account. Moreover, the necessity to maintain occupation forces abroad for the maintenance of world order will constitute a continuing commitment, although not, of course, on a scale anywhere comparable with that of war expenditure. But in any case a substantial outgoing on account of Government expenditure overseas must be foreseen in the immediate future.. Any estimate of the balance of payments in 9 would be so precarious, in view of the large uncertainties aftecting many of the factors discussed above, that it is useless to attempt to provide detailed estimates. But a study of the position indicates, on the assumption that the price level both of exports (f.o.b.) imports (c.i.f.) will be approximately double the prewar level in terms of sterling, that the order of magnitude of the deficit, with a fairly large measure of uncertainty, may be billion dollars. This figure is accordingly adopted as the starting-point of any calculations as to the future position. {Note: For convenience of reference, estimates of the balance of payments in 9-8 are given in Appendix VII.). It is even more difficult to foresee the rate of further expansion of exports in On the basis, however, of a billion dollar deficit in 9, it would not be safe to base policy on the assumption of a further deficit of less than billion dollars to provide for the two years 9 98 taken together for some more modest deficiency in 90 before the attainment of stable equilibrium.. This leaves us with a cumulative deficit which may well be billion dollars or even higher. It must be emphasised once again that these estimates are very precarious. They are fully as optimistic as any prudent person would adopt as the basis of a decision, in view of the extreme uncertainty of the conditions which will prevail in Europe elsewhere in the years immediately ahead of us; in view also of the international obligations responsibilities which the Government of the United Kingdom may have to assume in the pacification restoration of the shattered world. Admittedly, if all goes extremely well, if no unforeseen contingencies arise, if the uncertain factors mostly turn out on the favourable side, the ultimate figure might work out at less than the above. To meet this deficit, at the same time to release some part of the accumulated sterling balances, the United Kingdom has to rely on its own reserves, in the main, further external credits. In face of the uncertain outlook of 9 the doubtful prospects of trade in Europe the Far East in the early postwar years, in addition to the uncertainties inevitably arising out of a reconversion on so large a scale as is involved in increasing the volume of a country's exports by more than 0 per cent (See Appendix VIII) any kind of exact estimation covering three to five years ahead is obviously impossible. But if difficult commitments are to be undertaken onerous responsibilities accepted, it is necessary to set out on a basis sufficient to give some measure of confidence, without which FEDERAL RESERVE BULLETIN

25 BRITISH WHITE PAPER ANGLO-AMERICAN FINANCIAL AGREEMENT all would fail, to set at rest undue financial preoccupation, which would be sure to interfere with any confident sharing of responsibilities. The appendices which follow provide the relevant factual data without attempting any precarious forecasts for the future. APPENDIX I Loss of Exports. Diversion of Manpower to the Forces War Production. During the war every effort was concentrated upon building up the largest possible Armed Forces war production consistent with maintenance of minimum civilian needs. This was achieved in a number of ways by conscripting both men women to increase the labour force including a substantial number of women who will not remain in industry, by increasing substantially average weekly working hours by cutting to an absolute minimum production of every kind other than for direct war purposes or essential minimum civilian needs. The export industries were stripped of manpower; civilian supplies services of all kinds were reduced to the greatest possible extent. The following table (excluding Northern Irel excluding men over the age of women over the age of 9) shows changes in the distribution of the British labour force between 9 the extent to which export industries the distributive trades were affected. TABLE DISTRIBUTION OF LABOUR FORCE IN GREAT BRITAIN Armed Forces & Civil Defence.... War Industries Direct Export Industries Cther Industry Distributive Trades Unemployed Mid Millions Mid Mid Munitions other military stores. Excluding Government Service the contribution to the war effort of transport, food, public utilities, etc. Includes all occupations (including Government Service Professions) not otherwise classified.. Wartime Export Trade. The vital role of exports in the United Kingdom Balance of Payments has been referred to in the Paper, prewar figures appear in Appendix VII. However, there should be noted here, in the context of the concentration of manpower productive resources upon war needs, the extent to which normal export trade has had to be sacrificed. The following table shows the income derived from exports, since the later receipts reflect increases in world prices, the amount of exports by volume before during the war. TABLE UNITED KINGDOM COMMERCIAL EXPORTS (PRODUCE AND MANUFACTURES OF THE UNITED KINGDOM) Jan. /Sept. Millions of pounds Index of volume Increase of exports in 9 is partly due to exports for relief purposes. APPENDIX II Shipping Losses The United Kingdom entered the war with a merchant fleet of some million deadweight tons. TABLE UNITED KINGDOM AND COLONIES MERCHANT SHIPPING POSITION^ [00 gross tons over] Position at rd Sept.. Add: Gains New Building Captures Acquisitions (not returnable) Acquisitions (returnable) Gains Less: Losses Prewar tonnage Tonnage acquired during war Losses Position at 0th 9. Less: Returnable Position after return of returnable tonnage Dry cargo Million deadweight tons Tankers It is not possible to prepare an analysis on this basis of United Kingdom shipping alone (i. e. excluding vessels on Colonial registers) but the fact that the figures are not appreciably affected by the inclusion of vessels on Colonial registers is seen from the fact that at rd September these totalled 0. million tons at 0th 9, 0. million tons. Subject to losses gains after 0th 9. JANUARY 9

26 BRITISH WHITE PAPER ANGLO-AMERICAN FINANCIAL AGREEMENT In the course of the war more than half this tonnage has been lost as the result of enemy action. Part of the loss has been made good by new building acquisition; but, excluding ^ million tons of Dominion foreign-owned vessels now operating under charter, the United Kingdom merchant fleet at 0th 9 amounted to less than threequarters of the prewar fleet. The following table summarizes the position. APPENDIX III Loss of Overseas Investments i. Repatriations Realisations during the War. The proceeds realised from the sale overseas of United Kingdom-owned investments requisitioned or otherwise repatriated during the war (i.e. September to 9, inclusive), so far as known, were as follows: TABLE PROCEEDS OF SALE OR REPATRIATION OF OVERSEAS INVESTMENTS DURING THE WAR Sterling Area Dominions (Australia, New Zeal, South Africa Eire). India, Burma Middle East Colonies other Sterling Area Countries Sterling Area North America U. S. A..., Canada North America South America» Europe Rest of World All Countries Millions of dollars 80,00 0, 0 l ,00 Does not include collateral for Reconstruction Finance Corporation Loan.. Remaining Overseas Holdings. While in Section () above it was possible to show receipts from securities realised during the war it would not be possible to give an estimate in terms of capital value of the residue to which any real significance could be attached, in view of the technical difficulties of arriving at any satisfactory basis of valuation. An approach can, however, be made in terms of income, this leads to results of significance for the present purposes. For the figures of net income, that is of income receipts arising out of capital investments overseas, less income payments arising out of overseas holdings of sterling securities, represent the contribution to the United Kingdom balance of current payments on account of capital assets liabilities. The following figures show dividends interest payments on all types of investment other than shipping insurance. TABLE UNITED KINGDOM OVERSEAS RECEIPTS AND PAY- MENTS OF DIVIDENDS, INTEREST, ETC., IN 9 [Partly estimated] [Millions of dollars] Sterling Area Dominions (Australia, New Zeal, S. Africa & Eire).. India, Burma & Middle East.. Colonies & Sterling Area Countries Unallocated Sterling Area... Sterling Area North America U. S. A Canada North America South America Europe Rest of World & Unallocated. All Countries Gross U. K. receipts H > 0 8 Gross U. K. payments C ) 00 0 ( ) 9 Net U. K. receipts Gross receipts payments include certain collections of interest on external securities remitted to holders overseas. This does not, of course, affect the figures of net receipts.. Less than million dollars. Includes income on investments (other than insurance holdings) pledged to R. F. C. Includes interest charges on R. F. C. Loan. Includes non-recurring payments of arrears arising from the war years. APPENDIX IV The Increase of Overseas Debt Apart from the immediate balance of payments deficit referred to in paragraph above, the United Kingdom is faced with problems arising out of the deterioration in her overseas financial position on capital account. This has taken the form partly of a reduction in overseas capital assets through sales repatriations during the war, partly of a reduction in available reserves, but mainly of the accumulation of very large external liabilities. The following table shows the growth of external liabilities: FEDERAL RESERVE BULLETIN

27 BRITISH WHITE PAPER ANGLO-AMERICAN FINANCIAL AGREEMENT TABLE EXTERNAL LIABILITIES OF THE UNITED KINGDOM st August 98 do. st December do. 90 do. 9 do. 9 do. 9 do. 9 0th 9 [Millions of dollars] Net quick external liabilities.8,90,0,90,800,0 8,9,,00 Overseas loans io,0,,0, external liabilities.8,90,0,90,, 9,90,8, (Conversion of sterling into U. S. dollars from st December to 0th 9 is at =$.0. For the sake of comparability a similar rate has been used for st August although the rate then operative was l = $.. Conversion for August 98 is at = $.8, the rate then current.) Comprising banking liabilities less assets, funds held in the United Kingdom as cover for overseas currencies, etc. Figures for earlier years are subject to a greater degree of uncertainty in estimating than those for later years. The following table gives a geographical analysis of overseas liabilities: TABLE EXTERNAL LIABILITIES OF THE UNITED KINGDOM BY AREAS [Millions of dollars converted at = $.0] Sterling Area Dominions India, Burma & Middle East sterling area countries sterling area N. & S. America.... Europe Rest of world st Dec. 9 0,0,8,0 9 9, Outsting on: st Dec. 9,800,0,,00 9 9, st Dec. 9 90,9,90, 0,0 Including dependencies of European countries. st Dec. 9,80,9, 9,80 0,0 0 0th 9,0,980, 0,9,0 0 9,90,8, into dollars on dem (these liabilities are not included in the figures in Table ). Gold is valued throughout Table 8 at $ an ounce; liabilities to convert sterling holdings into dollars, at = $.0. TABLE 8 NET GOLD AND U. S. DOLLAR RESERVES OF THE UNITED KINGDOM st August do. st December do. do. do. do. do. 0th st October [Millions of dollars] ,0,, ,00,0,80,80 (provisional) Including an estimate of private holdings of gold dollars subsequently requisitioned. APPENDIX VI Overseas Disinvestment Table g summarises, over the period from the outbreak of war in Europe to 0th 9, the effect of the war upon the United Kingdom in terms of capital loss in the overseas financial position. This loss has taken the form of: () the realisation of investments (Appendix III); () the incurring of debts in the form of sterling balances, etc. (Appendix IV); () the running down of gold dollar reserves (Appendix V). TABLE 9 UNITED KINGDOM EXTERNAL DISINVESTMENT [So iar as recorded; probably an underestimate] Period Realisation of external capital assets [Millions of dollars] Increase of external liabilities Deer, or mcr. (-) of reserves Sundry minor adjustments net disinvestment APPENDIX V Loss of Reserves The following table shows the movement of United Kingdom reserves during the war. It will be seen that they have been restored to some extent, largely due to the pay of United States Forces in the United Kingdom, but they are still considerably below prewar levels. The figures are shown after deduction of outsting liabilities to provide gold against sterling liabilities of liabilities to convert United States of America holdings of sterling Sept./Dec... Year 90 Year 9 Year 9 Year 9 Year 9 Jan./ 9.. 0, ,00 0 0,,090,0,,0,0 0, ,0,0,,,0,,9 Sterling converted at = $.0 Gold Reserves valued at $ per ounce fine. The sum of these represents the loss of overseas wealth which Britain has suffered in order to meet JANUARY 9

28 BRITISH WHITE PAPER ANGLO-AMERICAN FINANCIAL AGREEMENT overseas military expenditure the cost of essential services supplies from abroad. APPENDIX VII For convenience of reference Table 0 below shows an estimated statement of the average United Kingdom Balance of Payments for the years 9 to 98. And while in other chapters of this paper values have so far as possible been expressed in terms of dollars, Table 0 is expressed in sterling since changes in the dollar/sterling rate render a comparison of converted figures taken at the current or past exchange rate misleading. TABLE 0 ESTIMATED AVERAGE UNITED KINGDOM BALANCE OF PAYMENTS FIGURES IN THE YEARS 9 TO 98 * Imports Merchise retained Silver bullion specie [Millions of pounds] Exports U. K. produce manufacture Silver bullion specie Excess of imports over exports Net Government payments overseas Estimated net income from shipping Estimated net income from overseas investments Estimated net receipts from commissions, insurances, etc. Estimated net receipts from other sources Estimated debit balance Millions of pounds Destruction Depreciation of Industrial Resources Property. War damage to property in the United Kingdom by bombing rocket attacks has, of course, been extensive. Houses destroyed or damaged by enemy action in the United Kingdom totalled,000,000. Of these 0,000 were totally destroyed, 0,000 were so badly damaged as to be rendered uninhabitable. The amount already paid out for compensation by the War Damage Commission is,08 million dollars. The total damage to property is estimated at,800 million dollars at current replacement costs: equal to,0 million dollars at 98 replacement costs. Much of the property destroyed has consisted of industrial plants which were naturally one of the enemy's main objectives. But over above such losses, United Kingdom industrial capacity has been run down by the deliberate policy of deferring all but the most vital repair maintenance. Thus during the war the United Kingdom has not merely lived on its external capital. It has also suffered a very considerable measure of domestic disinvestment. The amount of this domestic disinvestment is shown in Table. The figures shown represent simply the amount by which industrial other enterprises have been compelled, by shortage of materials labour, to allow arrears of normal depreciation obsolescence to accumulate. They do not take account of destruction by the enemy. Nor do they allow for the substantial running down of the stocks of clothing household goods or of arrears of normal maintenance of private residential property. TABLE DISINVESTMENT WITHIN THE UNITED KINGDOM Millions of dollars Re-exports imports for re-export excluded. APPENDIX VIII General Conditions The preceding Appendices have been concerned primarily with the financial problems confronting the United Kingdom at the end of the war, a major element being the need to restore increase the export trade. This Appendix records some of the physical factors losses of internal capital, both industrial domestic, restoration of civilian supplies dems upon the labour force which compete with or complicate the production of goods for export ,0 8, The above figures do not take account of possible postwar values of capital formation in the form of Government war expenditure. While these assets may have some peacetime use, their value for this purpose is not likely to be large. Summarising the foregoing including shipping losses already referred to in Appendix II Overseas Disinvestment referred to in Appendix VI, total United Kingdom losses of national wealth may be stated very approximately, to the extent that they can be estimated, as follows: FEDERAL RESERVE BULLETIN

29 BRITISH WHITE PAPER ANGLO-AMERICAN FINANCIAL AGREEMENT Physical destruction: On l Shipping (including cargoes) Internal disinvestment External disinvestment TABLE Billions of dollars This omits any estimate of private (i.e. non-industrial) disinvestment deterioration of dwellings, reduction of household inventories, etc. for which no estimate can be given. On the other h, it also fails to allow correction for any possible postwar value of wartime capital work undertaken by the Government. But in any case, a figure of 0 billion dollars would appear to be of the right order. Prewar United Kingdom national wealth has been very roughly estimated as of the order of 0 billion dollars (at present prices), so that the loss of national wealth over the war period is about per cent.. Dems on Production the Labour Force. Appendix I has shown not only the diversion of manpower from the export industries but the manner in which the whole distribution of the labour force as between civil production on the one h the Armed Forces direct munitions production on the other has been radically changed to meet war needs. The delays difficulties of demobilisation redistribution are in themselves formidable. They are rendered even more so by the special dems which have accumulated during the war. The building trade will make substantial dems for both direct building labour production. Immediate housing needs, to make good destruction the cessation of building during the war, are of the order of a million the long-term housing programme calls for the building of,- 000,000 houses in all in 0- years. The labour force in the building industry which amounted to 00,000 at the end of 9 is to be increased to 90,000 by 9 is likely to be around an average of,0,000 over the subsequent years, or about one-twelfth of the prospective total male population aged -. Manpower has been depleted by military civilian casualties. The industrial population feels the inevitable after-effects of the long period of overwork overstrain in all the difficulties blackout, queues, food shortages, raids, etc. of wartime Britain. Domestic capital in all but the war industries has been allowed to run down. There is an enormous backlog of renovation re-equipment to be tackled. Stocks of clothing household goods have been drastically cut for most families must now be approaching the point of exhaustion. Moreover, so far as textiles at least are concerned, the immediate outlook is worse, not better. People have been living on their capital of such goods even without the reconstitution of that capital, the mere replacement of wear tear must call for a great expansion in output. Extensive studies of comparative consumption levels in the United States of America, United Kingdom Canada have been made by the Combined Production Resources Board published on st October 9. It is not proposed here to go in detail over the ground so fully covered by these studies. It will be sufficient to give the following table, showing purchases per capita of consumer goods services in the United Kingdom. TABLE CONSUMER GOODS PURCHASED IN THE UNITED KING- DOM AT 98 PRICES PER HEAD OF POPULATION Change from prewar to 9 -% Change from 9 to 9 - % Change from prewar to 9 % The following table shows also the proportions in which the United Kingdom national income was spent in the years 98, 9 9: EXPENDITURE War Consumption Net nonwar capital home abroad. national income TABLE OF UNITED KINGDOM INCOME formation at NATIONAL Per cent of national income Thus the difficulties to be overcome in restoring external financial equilibrium exping exports which are formidable enough in themselves, have to be faced at a time when there are no less pressing dems at home to make good war losses deprivations alike of industry of a civilian population whose needs, beyond the barest minimum, have for six years been subordinated to the dems of war. 00 JANUARY 9

30 LAW DEPARTMENT Administrative interpretations of banking laws, new regulations issued by the Board of Governors, other similar material. License to Transact Banking Business Since the Banking Holiday in 9 every national bank every State bank which is a member of the Federal Reserve System has been required to obtain individually a license from the Treasury Department before transacting normal banking business. In lieu of the issuance of these individual licenses in the future, the Treasury Department by general license issued under date of December, 9, granted all national banks hereafter authorized to begin business all State banks hereafter admitted to membership in the Federal Reserve System the right to transact normal banking business. The text of the general license reads as follows: GENERAL LICENSE ISSUED UNDER EXECUTIVE ORDER No. 0, AS AMENDED, SECTION (B) OF THE ACT OF OCTOBER, 9,,AS AMENDED, AND SECTION OF THE ACT OF MARCH 9, 9. A general license to transact normal banking business is hereby granted to all banks hereafter authorized to begin business by the Comptroller of the Currency, effective upon the date of such authorization, to all State banks hereafter admitted to membership in the Federal Reserve System, effective upon the date of such admission, except: () to the extent prohibited in the Executive Order of the President of the United States issued on March 0, 9, as amended by the Proclamation of December 0, 9, by the Executive Order of January, 9 (see extract printed on the reverse of this license); () to the extent limited or prohibited by any executive order of the President or by regulations of the Secretary of the Treasury. This license may be revoked in whole or in part by the Secretary of the Treasury at any time. FRED M. VINSON, Secretary of the Treasury EXTRACT FROM EXECUTIVE ORDER NO. 0, AMENDED Until further order, no individual, partnership, association, or corporation, including any banking institution, shall export or otherwise remove or permit to be withdrawn from the United States or any place subject to the jurisdiction thereof any gold coin, gold bullion, or gold certificates, except in accordance with regulations prescribed by or under license issued by the Secretary of the Treasury. No permission to any banking institution to perform any banking functions shall authorize such institution to pay out any gold coin, gold bullion or gold certificates except as authorized by the Secretary of the Treasury, nor to allow withdrawal of any currency for hoarding. Purchase of Government Obligations by Federal Reserve Banks Amendment to Section (b) Extended Under the Second War Powers Act, enacted March, 9, section (b) of the Federal Reserve Act was amended so as to authorize the purchase or sale by Federal Reserve Banks, directly from or to the United States, of bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed as to principal interest, but limited the aggregate amount acquired directly from the United States held at any one time by the twelve Federal Reserve Banks to not exceeding billion dollars. Another provision of the Second War Powers Act, as amended, provided that such authority should terminate on December, 9, or at such earlier time as Congress by concurrent resolution, or the President, might designate. By Act of Congress approved December 8, 9, this time limit was extended until 0, 9. AS 8 FEDERAL RESERVE BULLETIN

31 Consumer Credit LAW DEPARTMENT Listed Articles Used in Realty Improvements An inquiry has been received as to the application of section 8 (a) of Regulation W, as amended by Amendment No. 8, when the repair, alteration or improvement consists in whole or in part of an article which is still on the list of articles in section («). The question arises in those cases where items like attic ventilating fans, linoleum or floor furnaces are installed, the question essentially is whether the item has become an "improvement" upon the realty. If the item is affixed to the structure so as to become an "alteration or improvement" upon the realty, it would come within the terms of the exception the credit would be exempt under section 8 (a) even though the item is of a class still included in the list of articles in section I(a). (This is so because the phrase "other than articles... elsewhere listed" which was in Group C is not in section $(a) as amended.) Whether or not the installation is of such a character as to be an "improvement" would seem to depend on whether the article becomes a part of the realty. This is a matter as to which the decisions of the courts have not been uniform, the result in particular cases is often affected by an agreement of the parties, the purpose for which the installation was made, the nature of the article (as distinguished from the manner in which it is attached or installed) other extraneous factors. However, for the purposes of section 8(#)() of Regulation W, the Board believes that a credit should be considered to be exempt only when the article is built into the structure in such a way that it can not be removed without substantial damage to the structure. Under this rule, anything which can be taken out by the removal of a few screws, leaving the structure as it was formerly, would not be an "improvement" upon the realty. On the other h, if a section of the wall, floor or ceiling had been removed in the process of installation the article had been affixed in that space, removal would require restoration of the wall, floor or ceiling, the article would be regarded as having become a part of the realty therefore an "improvement" within the meaning of section 8(#) Foreign Funds Control Treasury Department Releases The following releases relating to transactions in foreign exchange, etc., in addition to those heretofore published in the Federal Reserve BULLETIN, have been issued by the Office of the Secretary of the Treasury under authority of the Executive Order of April 0, 90, as amended, the Regulations issued pursuant thereto: Treasury Department Foreign Funds Control December, 9 GENERAL RULING NO. 9 Under Executive Order No. 889, as Amended, Executive Order No., as Amended, Sections (a) (b) of the Trading With the Enemy Act, as Amended by the First War Powers Act, 9, Relating to Foreign Funds Control* RELEASE OF PROPERTY VESTED BY ALIEN PROPERTY CUSTODIAN. All control under Executive Order No. 889, as amended, Executive Order No., as amended, of any property or interest of Germany or Japan or any national thereof vested by the Alien Property Custodian is hereby released to the Alien Property Custodian. The release of any such property or interest shall take effect on the effective date of the vesting order of the Alien Property Custodian covering the property or interest. FRED M. VINSON, Secretary of the Treasury. Treasury Foreign Funds Department Control December, 9 GENERAL LICENSE NO. 9 Under Executive Order No. 889, as Amended, Executive Order No., as Amended, Section (b) of the Trading With the Enemy Act, as Amended by the First War Powers Act, 9, Relating to Foreign Funds Control.^ CERTAIN COUNTRIES GENERALLY LICENSED () Blocked countries generally licensed subject to certain conditions. A general license is hereby granted licensing all * Sec. (a), 0 Stat. ; Sec. (b), 0 Stat. 9; Sec.. 8 Stat. ; Stat. 9; Stat. 88; Ex. Order 889, April 0, 90, as amended by Ex. Order 88,, 9, Ex. Order 88,, 9, Ex. Order 89, Dec. 9, 9. Ex. Order 88, Dec., 9; Ex. Order,. 9. as amended by Ex. Order 9. 8, 9; Regulations, April 0, 90, as amended, 9,, 9. t Sec. (b), 0 Stat. 9; Sec., 8 Stat. ; Stat. 9; Stat. 88; Ex. Order 889, April 0, 90, as amended by Ex. Order 88, Tune, 9, Ex. Order 88,,. 9, Ex. Order 89, Dec. 9, 9, Ex. Order 88. Dec., 9; Ex. Order,, 9, as amended by Ex. Order 9, 8, 9; Regulations, April 0, 90, as amended, 9,, 9. JANUARY 9 9

32 LAW DEPARTMENT blocked countries nationals thereof (excepting the following countries nationals thereof: (i) Germany Japan, (ii) Portugal, Spain, Sweden, Switzerl, Liechtenstein Tangier) to be regarded as if such countries were not foreign countries designated in the Order provided that (a) any property in which on the effective date hereof any of the following had an interest: (i) any blocked country (including countries licensed hereby) or person therein; or (ii) any other partnership, association, corporation, or other organization, which was a national of a blocked country (including countries licensed hereby) by reason of the interest of any such country or person therein; or (b) any income from such property the effective date hereof accruing on or after shall continue to be regarded as property in which a blocked country or national thereof has an interest no payment, transfer, or withdrawal or other dealing with respect to such property shall be effected under, or be deemed to be authorized by, this paragraph. () Transactions under other licenses authorized without regard to certain restrictions. With respect to property subject to the proviso of paragraph (), any transaction not involving any excepted country or national thereof which is authorized under any license (other than General Licenses Nos., A,,, 0A, 8 or any other license to the extent that it merely authorizes transfers between blocked accounts of the same person or changes in the form of property held in a blocked account) may be effected without regard to any terms of such license relating to the method of effecting such transaction. () Certain other transactions authorized. This license also authorizes any transaction which could be effected under General License No. if the countries licensed hereby were members of the generally licensed trade area, provided that this paragraph shall not be deemed to authorize any payment, transfer, or withdrawal, or other dealing, with respect to any property which is subject to the proviso of paragraph (). () Application of license to nationals of countries licensed hereby who are also nationals of excepted countries. Paragraphs () () shall not apply with respect to any national of a country licensed hereby who is also a national of any excepted country, provided, however, that for the purpose only of this license the following shall be deemed not to be nationals of an excepted country: (a) Any individual residing in a country licensed hereby, except any citizen or subject of Germany or Japan who at any time on or since December, 9 has been within the territory of either such country or within any other territory while it was designated as "enemy territory" under General Ruling No. ; (b) Any partnership, association, corporation, or other organization, organized under the laws of a country licensed hereby, unless it is a national of Germany or Japan. () Definition. As used in this license, the term "excepted country" shall mean any country excepted in paragraph (). () Effective date. The effective date of this general license shall be December, 9, except that it shall be October, 9 as to France November 0, 9 as to Belgium. Treasury Department Foreign Funds Control December, 9 GENERAL RULING NO. 0 FRED M. VINSON, Secretary of the Treasury. Under Executive Order No. 889, as Amended, Executive Order No., as Amended, Sections (a) (b) oj the Trading With the Enemy Act, as Amended by the First War Powers Act, 9, Relating to Foreign Funds Control* REGULATIONS RELATING TO PAYMENTS UNDER CERTAIN LICENSES () Certain payments not authorized. General Licenses Nos. A any other license to the extent that it merely authorizes payments or transfers between blocked accounts of the same person do not authorize any payment or transfer of property from an account regarded as blocked under the proviso of paragraph () of General License No. 9 except to an account which is also regarded as blocked under the proviso. () Responsibility for giving notice. Persons effecting any payment or transfer of property held in a blocked account pursuant to General Licenses Nos. or A or any other license to the extent that it merely authorizes payments or transfers between blocked accounts of the same person are required to notify the recipient that the property transferred must be placed in a blocked account. FRED M. VINSON, Secretary of the Treasury. * Sec. (a), 0 Stat. ; Sec. (b), 0 Stat. 9; Sec., 8 Stat. ; Stat. 9; Stat. 88; Ex. Order 889, April 0, 90, as amended by Ex. Order 88,, 9, Ex. Order 88,, 9, Ex. Order 89, Dec. 9, 9, Ex. Order 88, Dec., 9; Ex. Order,, 9, as amended by Ex. Order 9, 8, 9; Regulations, April 0, 90, as amended, 9,, 9. 0 FEDERAL RESERVE BULLETIN

33 CURRENT EVENTS Appointments of Chairmen, Deputy Chairmen, Directors In January the Board made the customary announcements of appointments of directors designations of Chairmen Deputy Chairmen of the Federal Reserve Banks for the new terms. A complete list of the Federal Reserve Bank branch directors will appear in a later issue of the BULLETIN. The new appointments designations announced up to the time this issue went to press are listed below: Federal Reserve Bank of Boston Mr. Henry I. Harriman of Newton, Massachusetts, who has been a Class C Director of the Federal Reserve Bank of Boston since March, 98, was appointed Deputy Chairman for the year 9. Mr. Harriman is Director Vice Chairman of the New Engl Power Association, Boston, Massachusetts. Mr. Donald K. David of Cambridge, Massachusetts, was appointed a Class C Director of the Federal Reserve Bank of Boston for a three-year term beginning January, 9. Mr. David is Dean of the Graduate School of Business Administration of Harvard University, Cambridge, Massachusetts. Federal Reserve Bank of New York Mr. Carl G. Wooster of Union Hill, New York, was appointed a Director of the Buffalo Branch of the Federal Reserve Bank of New York for a three-year term beginning January, 9. Mr. Wooster is engaged in farming. Federal Reserve Bank of Clevel Mr. Albert H. Burchfield, Jr., of Pittsburgh, Pennsylvania, was appointed a director of the Pittsburgh Branch of the Federal Reserve Bank of Clevel for a three-year term beginning January, 9. Mr. Burchfield is Vice President of the Joseph Home Company, Pittsburgh, Pennsylvania. Federal Reserve Bank of Richmond Mr. James E. Hooper of.baltimore, Maryl, was appointed a director of the Baltimore Branch of the Federal Reserve Bank of Richmond for a threeyear term beginning January, 9. Mr. Hooper is Viet President of William E. Hooper Sons, Company, Baltimore, Maryl. Mr. R. Flake Shaw was appointed a director of the Charlotte Branch of the Federal Reserve Bank of Richmond for a three-year term beginning January, 9. Mr. Shaw is engaged in farming is also Executive Secretary of the North Carolina Farm Bureau Federation, Greensboro, North Carolina. Federal Reserve Bank of Atlanta Mr. H. G. Chalkley of Lake Charles, Louisiana, who was serving as a director of the New Orleans Branch of the Federal Reserve Bank of Atlanta in 9 when he was called to active duty as an officer in the Navy, was appointed a director of the New Orleans Branch January, 9, for the unexpired portion of the term ending December, 9, Mr. Chalkley is President of The Sweet Lake L Oil Company, Inc., Lake Charles, Louisiana. Federal Reserve Bank of Chicago Mr. Prentiss M. Brown of Detroit, Michigan, was appointed a director of the Detroit Branch of the Federal Reserve Bank of Chicago for a two-year term beginning January, 9. Mr. Brown is Chairman of the Detroit Edison Company, Detroit, Michigan. Mr. Russell L. Dearmont, of St. Louis, Missouri, who was appointed a Class C Director of the Federal Reserve Bank of St. Louis on December, 9, was designated Chairman Federal Reserve Agent for the year 9. Mr. Dearmont is General Counsel for Trustee, Missouri-Pacific Lines, St. Louis, Missouri. Mr. Cecil C. Cox, of Stuttgart, Arkansas, was appointed a director of the Little Rock Branch of the for a threeyear term beginning January, 9. Mr. Cox is engaged in farming. Mr. Leslie M. Stratton, Jr., of Memphis, Tennessee, was appointed a director of the Memphis Branch of the for a three-year term beginning January, 9. Mr. Stratton is Executive Vice President of the JANUARY 9

34 CURRENT EVENTS Stratton-Warren Hardware Company, Memphis, Tennessee. Federal Reserve Bank of Minneapolis Mr. Roger B. Shepard of Newport, Minnesota, who has been a Class C Director of the Federal Reserve Bank of. Minneapolis since December 8,, Deputy Chairman since March, 90, was designated Chairman Federal Reserve Agent for the year 9. Mr. Shepard is President of Finch, Van Slyck McConville of St. Paul, Minnesota. Mr. W. D. Cochran of Iron Mountain, Michigan, who has been a Class C Director of the Federal Reserve Bank of Minneapolis since January 8,, was appointed Deputy Chairman for the year 9. Mr. Cochran is the owner of the W. D. Cochran Freight Lines, Iron Mountain, Michigan. Mr. Paul E. Miller of St. Paul, Minnesota, was appointed a Class C Director of the Federal Reserve Bank of Minneapolis for a three-year term beginning January, 9. Mr. Miller is Director of Agricultural Extension, University of Minnesota. Federal Reserve Bank of Dallas Mr. J. R. Parten of Houston, Texas, who has been a Class C Director Deputy Chairman of the Federal Reserve Bank of Dallas since January, 9, was designated Chairman Federal Reserve Agent for the year 9. Mr. Parten is President of the Woodley Petroleum Company, Houston, Texas. Mr. R. B. Anderson of Vernon, Texas, was appointed a Class C Director of the Federal Reserve Bank of Dallas for a three-year term beginning January, 9, Deputy Chairman for the year 9. Mr. Anderson is General Manager of the Waggoner Estate, Vernon, Texas. Mr. Dorrance D. Roderick of El Paso, Texas, was appointed a director of the El Paso Branch of the Federal Reserve Bank of Dallas for a three-year term beginning January, 9. Mr. Roderick is President of the Newspaper Printing Corporation, El Paso, Texas. Retirement of Mr. Day appointments of Mr. Clerk as President Mr. Earhart as First Vice President of the Federal Reserve Bank of San Francisco Mr. William A. Day, who had been an officer of the Federal Reserve Bank of San Francisco since 9 President since April 9, resigned as President on December, 9, having availed himself of the privilege of retiring under the provisions of the Retirement System of the Federal Reserve Banks. Mr. Day was succeeded as President, effective January, 9, by Mr. Ira Clerk, who had served as First Vice President since April 9. Mr. Clerk has been an officer of the Bank since it was organized in November 9. Mr. Clerk, in turn, was succeeded as First Vice President by Vice President C. E. Earhart, who has been with the Bank since 9 who has served as an officer since 90. Appointment of Assistant Director of Research Chler Morse has been appointed as Assistant Director of the Board's Division of Research Statistics assumed his new duties on January, 9. Mr. Morse has been associated with the Office of Strategic Services for the past four years. Prior to that time he served for a number of years on the stafl of the Board's Division of Research Statistics the staff of the Research Department of the Federal Reserve Bank of New York. Admissions of State Banks to Membership in the Federal Reserve System The following State banks were admitted to membership in the Federal Reserve System during the period November, 9, to December, 9: California San Diego Security Trust & Savings Bank of San Diego Florida Miami Pan American Bank of Miami Iowa Rock Rapids Lyon County State Bank Missouri Pleasant Hill The Pleasant Hill Bank Oklahoma Fairfax The First State Bank Pennsylvania New Bethlehem New Bethlehem Bank Texas McAllen McAllen State Bank FEDERAL RESERVE BULLETIN

35 FOREIGN BANKING LAWS AND REPORTS TRANSFER OF GOLD TO FRENCH STABILI- ZATION FUND On September 0, 9, a convention was concluded between the Ban\ of France the State authorizing the Ban\ to cede 0 billion francs in gold to the Stabilization Fund in return for a li\e amount of three-month Treasury bills. The last transaction of this nature too\ place in March 90. France is now making large purchases abroad the transfer of this gold from the Ban\ to the Fund was necessary in order to replenish foreign exchange holdings reduced by these purchases. The texts of the convention of the ordinance approving the convention as given in the Journal Officiel of October, 9, are translated below. ORDINANCE APPROVING A CONVENTION ENTERED INTO BETWEEN THE STATE AND THE BANK OF FRANCE The provisional Government of the French Republic, On the report of the Minister of Finance, By virtue of the ordinance of, 9, establishing the French Committee of National Liberation, in conjunction with the ordinances of September, 9: In view of the urgency stated by the President of the Government; The Council of State (permanent commission) concurring: Decrees: Art.. The convention entered into on September 0, 9, between the Minister of Finance the Bank of France, is approved. Art.. The present ordinance shall be published in the Official Journal of the French Republic executed as law. Done at Paris, September 9, 9. C. DE GAULLE. By the provisional Government of the French Republic: The Minister of Finance, R. PLEVEN CONVENTION BETWEEN THE MINISTER OF FINANCE AND THE BANK OF FRANCE Between the undersigned, M. Rene Pleven, Minister of Finance, acting on behalf of the State, M. Emmanuel Monick, Governor of the Bank of France, duly authorized by decision of the general council of the Bank of France, under date of September 0, 9, it has been agreed as follows: Art.. The Bank of France shall transfer to the State for account of the Exchange Stabilization Fund, gold from its reserve to an amount of 0,000 million francs, at the rate of. milligrams gold fine per franc. Art.. In return for the transfer provided for in article of the present convention, the amount of negotiable Treasury bills delivered to the Bank of France in accordance with the provisions of the convention of February 9, 90, shall be increased from 0,000 million to 0,000 million francs. Art.. The present convention is exempt from stamp registration taxes. Done at Paris, September 0, 9. Read approved: E. MONICK. Read approved: R. PLEVEN. RE-ESTABLISHMENT OF THE AUSTRIAN NATIONAL BANK The Provisional Government of Austria has reestablished the Austrian National Ban\, which had been dissolved by the Germans immediately after the annexation of Austria in 9 8. The Government adheres to its contention that the annexation, all German legislative acts connected with it, was legally invalid, that the Austrian National Ban\ therefore has never ceased to exist. Accordingly it did not re-enact the BanJ(s statutes, but simply modified certain provisions of the old statutes that had become inapplicable because of the changed conditions. It left the final reorganization, especially the question of public or private ownership, to future legislative action. The notes of the National Ban\ have again become the only legal tender paper money in Austria since the currency exchange that went into effect on December, 9. See BULLETIN for 90, pp JANUARY 9

36 FOREIGN BANKING LAWS AND REPORTS LAW OF JULY, 9, CONCERNING THE PROVISIONAL REORGANIZATION OF THE AUSTRIAN NATIONAL BANK (STAATSGESETZBLATT 9, No. ISSUE OF JULY.) The Provisional Government has decided: ARTICLE I The Austrian National Bank, robbed of its gold foreign exchange reserves as a result of the forcible annexation by the German Reich suspended from activity during the period of annexation because of the transfer of its assets to the German Reichsbank, has been re-established through the declaration of the independence of Austria. ARTICLE II Whereas due to the state of war the former statutes of the Austrian National Bank can not remain in force unaltered pending the restoration of peaceful conditions also pending the revision of the statutes by the future legislature, the Provisional Government, in amendment of the former statutes of the Bank, adopts the following temporary measures concerning the legal status of the Austrian National Bank. Sec.. The management of the Austrian National Bank is reorganized in such a manner that the President his deputy shall be appointed by the State Chancellor, the former upon nomination by the Provisional Government * the latter upon nomination by the Department of Finance. Sec.. The General Council shall consist of nine voting members appointed by the State Chancellor upon nomination by the Provisional Government taking into consideration the representation of important economic groups. The President, or in his absence the Vice-President, shall act as chairman. Sec.. (i) The General Council shall determine the principles of the credit policy of the Austrian National Bank supervise its execution. It shall draft new statutes for the Bank submit them in the form of a bill to the Provisional Government. In this draft due consideration shall be given to the increased influence of the National Bank upon the supply control of credit as required by the dems of the postwar economy. (ii) Resolutions of the General Council shall be submitted immediately to the Provisional Government. Sec. (i) The Austrian National Bank shall take over that part of the bank note circulation of the dem liabilities of the German Reichsbank which shall be declared by law to constitute circulating media for Austria. (ii) It shall take over all assets of the German Reichsbank located in Austrian territory it shall further be authorized to pursue all claims arising from the removal of the cash reserves other assets of the Austrian National Bank from the fact that the liquidation of the Austrian National Bank was undertaken contrary to law. (iii) The Austrian National Bank shall be responsible for the liabilities of the branches of the German Reichsbank located in Austrian territory, other than the liabilities mentioned in paragraph (i), only in case to the extent that the satisfaction of its claims against the German Reich the German Reichsbank results in a surplus over above the liabilities mentioned in paragraph (i) or to the extent that such liability shall be imposed by law. (iv) Until further notice the Austrian National Bank shall be authorized to enter in its assets, as cover for the liabilities to be assumed according to paragraph (i), a claim against the German Reichsbank in the same amount. Sec.. (i) The amount of bank notes dem liabilities to be taken over according to Sec., paragraph (i), shall not be exceeded pending the issue of the definitive statutes of the Austrian National Bank. (ii) As soon as the amount of the liabilities to be assumed is established, the Bank shall begin publication of weekly statements. These statements shall include on the liabilities side only the amount of bank notes in circulation dem liabilities on the assets side only the assets serving as cover for the note issue. Sec.. The current fiscal year of the Austrian National Bank shall run from, 9, to December, 9. As soon as possible, but not later than October, 9, the Austrian National Bank shall submit to the Department of Finance a budget estimate for this fiscal year obtain approval of this estimate. To the extent that the approved expenditures of this estimate are not covered by the business receipts of the Bank, the deficit shall be covered by advances from the State. The status of these advances shall be settled at the time of the legislative reorganization (Article II) of the bank of issue. The profit loss account FEDERAL RESERVE BULLETIN

37 FOREIGN BANKING LAWS AND REPORTS to be set up at the end of the fiscal year shall be examined by auditors appointed by the Department of Finance. Surpluses, if any, shall be carried forward. Sec.. (i) The transfer of assets of the German Reichsbank to the Austrian National Bank shall be tax tree. The necessary l registration shall be carried out by the courts upon application by the Austrian National Bank. (ii) The Austrian National Bank is authorized to reconvert into business offices the apartments constructed after March, 98, in the buildings taken over by it utilized for the conduct of its business, to give any necessary notice of cancellation of leases. ARTICLE III All laws, decrees, other measures affecting central banking issued after March, 98, by the German Reich Government for Austrian territory are repealed, especially the German Reichsbank Law of,, German Reichsgesetzblatt I, p. 0, the decree of March, 98, for the absorption of the Austrian National Bank by the German Reichsbank, German Reichsgesetzblatt I, p., together with the administrative order of April, 98, concerning the introduction of the reichsmark currency in Austria the absorption of the Austrian National Bank by the Reichsbank, German Reichsgesetzblatt I, p. 0, the second administrative order of October, 98, for the absorption of the Austrian National Bank by the German Reichsbank, German Reichsgesetzblatt I, p. 9. ARTICLE IV The Provisional Government shall be responsible for the execution of this law. Renner Scharf Figl Koplenig Honner Fischer Gero Zimmermann Buchinger Heinl Korp Bohm Raab JANUARY 9

38 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled December 0, released for publication December ~\ Output at factories mines increased considerably in November activity continued to exp in most other lines. Value of retail sales reached new record rates in November the early part of December reflecting in part further increases in prices. INDUSTRIAL PRODUCTION Output in most industries showed important gains in November the Board's index of industrial production advanced about per cent. The index, at a level of per cent of the 9-9 average, was about the same as in September in the autumn of 9. Output for civilian use in November, especially of fuels, industrial materials, producers' equipment, was larger than in those earlier periods. Production for civilians of many finished consumer products, however, like automobiles, radios, clothing, shoes, while much higher in November than in September, was still greatly reduced from 9 levels. Steel production showed a large rise during November in the first three weeks of December output was scheduled at an average rate of 8 per cent of capacity, which was higher than the November average. Activity at shipyards continued to decline considerably in November but increases occurred in most other metal fabricating industries. Further increases in output were indicated in plants producing electrical products machinery in the railroad equipment automobile parts assembly industries. Automobile production, INDUSTRIAL PRODUCTION PERCENT PHYSICAL VOLUME SEASONALLY ADJUSTED, 9-9= 00 PERCENT however, was curtailed sharply in the last week of November the first half of December by a strike in the plants of a major producer. Lumber glass production were at low levels in November owing partly also to industrial disputes. In the case of lumber, however, output in recent months before the West Coast strikes was below levels one-third less than the rate in 9. Production of most nondurable manufactures of fuels increased from October to November reflecting increased supplies of materials labor the end of work stoppages in the-petroleum coal industries as well as strong dem generally for these most other goods for civilian use. Incomes received by agriculture, business, consumers appear to have continued to rise in November as a result of the widespread increases in production employment further rises in prices wage rates. Payments to unemployed industrial workers veterans also increased somewhat in November. Employment in nonagricultural establishments rose by over 00,000 workers in November, after allowing for seasonal changes, reflecting increases in all major lines except Federal war agencies. A further decline of about 00,000 workers in munitions industries was more than offset by gains in employment in other manufacturing industries, mostly in reconverted metal-products plants. Employment in the trades services, construction, DEPARTMENT STORE SALES AND STOCKS PER CENT DOLLAR VOLUME SEASONALLY ADJUSTED, Federal Reserve index. Monthly figures, latest shown is for November Federal Reserve indexes. Monthly figures, latest shown are for November. FEDERAL RESERVE BULLETIN

39 NATIONAL SUMMARY OF BUSINESS CONDITIONS various other lines showed relatively larger increases than in manufacturing. DISTRIBUTION Department store sales increased sharply in November the Board's seasonally adjusted index rose to a record level of 8 per cent of the 9-9 average as compared with in October. November sales were per cent larger than last year in the first half of December sales continued to show about the same increase. Sales at some other types of retail stores, especially those selling automotive supplies, men's apparel, furniture, building materials, hardware, have recently shown much larger increases than department stores, while sales of foods various other products have shown somewhat smaller increases. Shipments of most classes of railroad revenue freight showed less decline than is usual in November the early part of December were only per cent below last year's high level. Carloadings of agricultural commodities l.c.l. merchise were considerably above last year's level. COMMODITY PRICES Wholesale prices of most groups of commodities increased from the early part of November to the middle of December. With most farm products at ceiling levels, advances in prices of these products were smaller than in September October. Ceiling prices were raised for newsprint, textile fabrics, building materials, various other industrial products, but a general increase in steel prices was turned down. BANK CREDIT Loans investments at banks in 0 leading BILLIONS OF DOLLARS MEMBER BANKS IN LEADING CITIES cities increased by over billion dollars during the six weeks ended December ; this period covered the major part of the Victory Loan Drive. Government security holdings increased by. billion dollars a somewhat smaller rise than had occurred in the three prior drives. Loans for purchasing or carrying Government securities rose by. billion dollars, at their mid-december levels loans both to brokers dealers to other bank customers slightly exceeded the high points of the previous drives. Commercial industrial loans, which had been exping since early fall, rose by an additional 800 million dollars during the six-week period. The increase in commercial credit extension has been at a rate substantially greater than at any time in recent years. As payments for security purchases transferred funds from deposits of businesses individuals to reserve-exempt war loan accounts, the average level of required reserves at all member banks declined by around 00 million dollars during the first half of December. Early in the month, excess reserves rose to above. billion dollars on a weekly average basis. Subsequently, however, excess reserves declined somewhat, as the amount of War Loan deposits at many banks reached the maximum limits banks turned over to the Treasury current receipts from sales of Government securities. Currency outflow has continued at a slackened rate compared with wartime years; money in circulation increased by close to 0 million dollars during the six weeks ended December compared with over 0 million in the 9 period. On a seasonally adjusted basis, currency outflow has recently been at the lowest rate since the early part of 9. BILLIONS OF DOLLARS MEMBER BANK RESERVES AND RELATED ITEMS Dem deposits (adjusted) exclude U. S. Government interbank deposits collection items. Government securities include direct guaranteed issues. Wednesday figures, latest shown are for Dec Breakdown between required excess reserves partly estimated. Wednesday figures, latest shown are for Dec.. JANUARY 9

40 FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS UNITED STATES Member bank reserves, Reserve Bank credit, related items 0 Federal Reserve Bank discount rates; rates on industrial loans, guarantee fees rates under Regulation V; rates on time deposits; reserve requirements; margin requirements - Federal Reserve Bank statistics - Guaranteed war production loans Deposits reserves of member banks - Money in circulation 8-9 Gold stock; bank debits deposit turnover 9 Deposits currency; Postal Savings System; bank suspensions 0 All banks in the United States, by classes - All insured commercial banks in the United States, by classes - Weekly reporting member banks -8 Commercial paper, bankers' acceptances, brokers' balances 9 Money rates bond yields 0 Security prices new issues - Corporate earnings dividends Treasury finance - Government corporations credit agencies Business indexes 8- Department store statistics 8-80 Consumer credit statistics 8-8 Wholesale prices 8 Gross national product, national income, income payments 8 December crop report, by Federal Reserve districts 8 Current statistics for Federal Reserve chart book 8-8 PAGE Tables on the following pages include the principal available statistics of current significance relating to financial business developments in the United States. The data relating to the Federal Reserve Banks the member banks of the Federal Reserve System are derived from regular reports made to the Board; index numbers of production are compiled by the Board on the basis of material collected by other agencies; figures for gold stock, money in circulation, Treasury finance, operations of Government credit agencies are obtained principally from statements of the Treasury, or of the agencies concerned; data on money security markets commodity prices other series on business activity are obtained largely from other sources. Back figures for banking monetary tables, together with descriptive text, may be obtained from the Board's publication, Banking Monetary Statistics; back figures for most other tables may be obtained from earlier BULLETINS. 8 FEDERAL RESERVE BULLETIN

41 MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS WEDNESDAY FIGURES BILLIONS OF DOLLARS (9 Wednesday figures, latest shown are for Dec. See p. 0. JANUARY 9 9

42 MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Date Reserve Bank credit outsting U. S. Government securities All other All other Gold stock Discounts advances Treasury bills certificates Treasury currency outsting Money in circulation Treasury cash holdings Treasury deposits with Federal Reserve Banks Nonmember deposits Federal Reserve accounts Member bank reserve balances Excess Monthly averages of daily figures: 9 Sept Oct Nov 9 Sept Oct Nov ,8,09 8,9,8,,,0,, 0,0 0, 0,90,0,,,8,908, ,9,89 9,009,09,888,89 0,8 0, 0,08 0,090 0,08 0,0,.,,,,90,,,8,,9 8,,8,.0,,9, ,,9,9,,88, ,,808.0,,, ,0,0,0, End of month figures: 9 Sept. 0.. Oct.... Nov Sept. 9.. Oct... Nov ,, 8,88,8,,,,0,0 0,8 0,9 0,9,,,,9,89S, , 8, 9,,08,98,9 0,8 0, 0,88 0,0 0,0 0,00,,,,,8,0,9,,09,8 8,09 8,,,,,,, ,,,,8,, ,8,8,8,0,,0,0 90,, 90,0 Wednesday figures: 9 Feb... Feb... Feb... Feb ,0 9,8 9, 9,9,0,,,8,,,98, ,0 9,98 0,00 0,8 0,8 0,0 0,0 0,0,,,,,,,,,,89,8, 9 0,,9,, ,90,0,9, Mar... Mar... Mar,.. Mar ,0 9, 9,9 9,.,8,9,,98,98,98, ,0 0,9 0, 0,0 0, 0, 0, 0,9,,0,0,8,8,88,8,8,,,0, ,8,8,, 9,08,9,9,0 8,0,0 8 Apr... Apr... Apr. 8.. Apr ,80 0,09 0, 0,,,9 8,0 8,,,,, , 0, 0,9,0 0,8 0, 0,9 0,,,8,,0,8,,08,0,9,,, 09 0,0,,9, 8 9,,9,8, ,9 0,0 0,8 0,,0 8, 8, 8, 8,809 8,89,,0, 8 8 9,0,89,8,980,8 0, 0, 0, 0, 0,0,0,,,,,0,,,,00,8,8,,9, 0,,,,9, ,89,09,,, 9 9,0 8, ,89,0,0,9 8, 8, 8,0 8,89,,80,9,9 98 9,0,,8, 0,8 0,8 0, 0,,,,,,,,,8,,9,9, 0 8,,0,0,,,,,0,098,,, ,,,,0 8,98 8, 8,8 8,8,98,98,98, 0 t,9,08,0,9 0, 0, 0, 0,,,,,,8,9,90,9,8,0,, ,',,, ,,0,0,,08,,08 Aug... Aug. 8.. Aug... Aug... Aug ,8,90,8",9,8 9,0 9,0 9,08 9, 9,,8,8,8,89,8 88 0,,0,8,,0 0, 0, 0,0 0,088 0,088,98,9,98,0,,0,9,,0,00,0,9,,8, ,,88,,, 8 8 8,8,8,00,,00,0,0,,08 98 Sept... Sept... Sept. 9.. Sept... 0,,808,9,8 9,0 0,0 0, 0,0, ,9,,0,89 0,088 0,09 0,09 0,09,,,,,0,9,,9,9,,8, ,9,8,,0,80,9,, 9 9,09 89 Oct... Oct. 0.. Oct... Oct... Oct ,,,90,089, 0,9 0, 9,98 0,9 0,9,9,9,9,898, ,8,9,,90,98 0,0 0,00 0,09 0,08 0,0,8,,,0,8,8,9,9,9 8,09,8,8,9,8, ,9,9,,9, ,0,,00,,,00,0,0,00 90 Nov... Nov... Nov... Nov ,0,8,, 0,9 0,0 0, 0, ,8,98,, 0,0 0,0 0,0 0,0,8,8,9,9 8, 8,8 8,98 8,9,8,,,9 80 0,0,,0, ,,,9, 98,,0,9 Dec... Dec... Dec. 9.. Dec ,,9,8,0 0, 0,0 0,0 0, , ,9,,89, 0,09 0,0 0,0 0,0,0,., 8,9 8,0 8, 8,9, 8 88,8 8,,0,0,8, ,,9,90,8,9,98 P, Pl. P Preliminary. Includes industrial loans acceptances purchased shown separately in subsequent tables. End of month Wednesday figures are estimates. Back figures. See Banking Monetary Statistics, Tables 0-0, pp. 9-9; for description, see pp. 0- in the same publication. FEDERAL RESERVE BULLETIN

43 FEDERAL RESERVE BANK DISCOUNT RATES [In effect December. Per cent per annum Federal Reserve Bank Advances secured by Government obligations maturing or callable in one year or less (Sec. ) Discounts for advances to member banks Advances secured by Government obligations maturing or callable beyond one year discounts of advances secured by eligible paper (Sees. a) secured advances [Sec. 0(b)J Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of the U. S. (last par. Sec. ) To nonmember banks To others Rate Effective Rate Effective Rate Effective Rate Effective Rate Effective Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.... V Y Vi l A H y Oct. Oct. 0 Oct. Oct. Oct. 8 Oct. Oct. Oct. Oct. 0 Oct. Oct. Oct Sept., Aug., Mar., 9 Apr., 9 Mar., 9 Mar., 9 Feb. 8, 9 Mar., 9 Mar. 8, 9 Apr., 9 Mar., 9 Apr., 9 A \y Oct., Oct. 0, Oct., Sept., Oct. 8, Oct., Aug. 9, Mar., Oct. 0, Oct., Oct., Oct. 8, Sept., Aug., Mar., 9 Apr., 9 Mar., 9 Sept., Sept., Sept., Mar. 8, 9 Sept., vsept., Apr., 9 H X A ^, X A Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct., 9 0, 9, 9, 9 8, 9, 9, 9, 9 0, 9, 9, 9 8, 9 shown also apply to advances secured by obligate ns of Federal intermediate credit banks FEDERAL RESERVE BANK BUYING RATES ON BILLS [Per cent per annum] Maturity Treasury bills l Bankers' acceptances: - 90 days 9-0 days -80 days Rate on Dec. X A In effect beginning Apr. 0, 9 Oct. 0, 9 Oct. 0, 9 Oct. 0, 9 Previous rate Established rate at which the Federal Reserve Banks st ready to buy all Treasury bills offered. Effective Aug., 9, purchases of such bills, if desired by the seller, were made on condition that the Reserve Bank, upon request before maturity, would sell back bills cf like amount maturity at the same rate of discount. Since, 9, all purchases have been made subject to repurchase option. Minimum buying rates on prime bankers' acceptances. Back figures. See Banking Monetary Statistics, Table', pp. -. GUARANTEE FEES AND MAXIMUM INTEREST AND COM- MITMENT RATES CHARGEABLE UNDER REGULATION V ON LOANS GUARANTEED BY WAR DEPARTMENT, NAVY DEPARTMENT, AND MARITIME COMMIS- SION UNDER EXECUTIVE ORDER NO. 9 AND CONTRACT SETTLEMENT ACT OF 9 [Rates in effect December ] FEES PAYABLE TO GUARANTOR BY FINANCING INSTITUTIONS 80 or less Over 9 Percentage of loan guaranteed H Guarantee fee (In terms of percentage of amount of interest payable by borrower) MAXIMUM RATES THAT MAY BE CHARGED BORROWERS BY FINANCING INSTITUTIONS Maximum rate of interest... Maximum commitment rate [Per cent per annum] Guarantee fee is charged only on guaranteed portion of loan. Based on average daily unused balance of the maximum principal amount of the loan. The financing institution may, in the alternative, charge a fiat fee of not to exceed $0, without regard to the amount or maturity of the commitment. JANUARY 9 X A FEDERAL RESERVE BANK RATES ON INDUSTRIAL LOANS AND COMMITMENTS UNDER SECTION b OF THE FEDERAL RESERVE ACT i Maturities not exceeding five years [In effect December. Per cent per annum To industrial or commercial businesses To financing institutions Reserve Bank Boston New York Philadelphia... Clevel Richmond Atlanta Chicago.. St. Louis Minneapolis... Kansas City... Dallas San Francisco.. On loans ^- ^- ^- -- ^- > - ^- K- On commitments y-\ ^ y> \ ] / - \A /^ i/ H-Ui l/ ~ \ X A y> i} l/ij-l ^ A-VA On discr>unts or purchases Portion for which institution IS obligated A) () <*) () ^- - X A () ( ) (?) Remaining portion (-0 C) I ) ( ) (V C ) ( ) (0 On commitments y~\ J-M X A~\ X A yz. \}/± ^~i M X-iX }/ \\&. x A-i x A }/~\}/i &X A~ X A See table on maximum interest commitment rates chargeable under Regulation V for rates on guaranteed Section b loans. Including loans made in participation with financing institutions. Rate charged borrower less commitment rate. Rate charged borrower. charge rate charged borrower by financing institution, if lower. Charge of M per cent is made on undisbursed portion of loan. Back figures. See Banking ' Monetary Statistics, Table 8, pp. -. MAXIMUM RATES ON TIME DEPOSITS Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regulation Q [Per cent per annum] Savings deposits Postal savings deposits deposits payable: In months or more In 90 days to months.... In less than 90 days Nov.,9- Feb., 9- Jan., 9 Dec.,9 X A y Effective Jan., 9 NOTE. Maximum rates that may be paid by insured nonmember banks as established by the F. D. I. C, effective Feb., 9, are the same as those in effect for member banks. Under Regulation Q the rate payable by a member bank may not in any event exceed the maximum rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located.

44 MEMBER BANK RESERVE REQUIREMENTS [Per cent of deposits] Period in effect, 9-Aug., 9 Aug., 9-Feb. 8, 9 Mar., 9-Apr. 0, 9, 9-Apr., 98 Apr., 98-Oct., 9 Nov., 9-Aug. 9, 9 Aug. 0, 9-Sept., 9 Sept., 9-Oct., 9 Oct., 9 after Net dem deposits Central reserve city banks 9^ % % 0 Reserve city banks 0 ^ 0 H Country banks 0^ J. Time deposits (all member banks) Dem deposits subject to reserve requirements, i. e., dem deposits other than war loan deposits, minus cash items in process of collection dem balances due from domestic banks. Item Assets Gold certificates Redemption fund for F. R. notes cash gold certificate reserves Discounts advances: For member banks For nonmember banks, etc discounts advances Industrial loans U.S.Government securities: Direct: Bills: Under repurchase option Certificates: Special Notes Bonds Guaranteed ^ SH MARGIN REQUIREMENTS [Per cent of market value] Prescribed in accordance with Securities Exchange Act of 9 Regulation T: For extensions of credit by brokers dealers on listed securities For short sales Regulation U: For loans by banks on stocks Nov., 9- Feb., Feb., 9-, Effective, 9 Regulations T U limit the amount of credit that may be extended on a security by prescribing a maximum loan value, which is a specified percentage of its market value at the time of the extension; the "margin requirements" shown in this table are the difference between the market value (00%) the maximum loan value. Back figures. See Banking Monetary Statistics, Table, p. 0. PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS [In thouss of dollars] U. S. Government securities, including guaranteed securities...,0,,8,0,9,.,,,8,,,,,0,,, 8,, 8,8,0 Reserve Bank credit outsting,0 8,,,98,,80, 90,9 8, 8,8 8,0 Reserve Bank credit outsting. Liabilities Federal Reserve notes Deposits: Member bank reserve account U. S. Treasurer general account Foreign deposits deposits. Ratio of gold certificate reserves to deposit F. R. note liabilities combined (per cent) Dec. Wednesday figures 9,0,,0,,,0,,,0,,,0,,0,,,0,,08,0,80, 800, 9,8,8,9,8,9,89,08,89,,8,90,8,8,8,00 0,.000,000 9,0,08,8,0,9,9 8,,,9.0 9,89,,9,,00,,9,,8,90,9,8,9,,,0,9,9,8,,8,,8,9,90,0,8,,8,98,0 8, 8,880 Dec. 9,,8,000 9,8,,,0,9,09 8,,,9,0 9,89,,0,8,90,,9 8,0 8,008 9,8 8,8,0,90,,,9,,8 8,9,8,0,8,88,,09,00 8,,0 8,09,0,0,90.0 Dec.,0,,0,000,0,,,,9,9 8,0,,0,0 9,89,9 88,80,8. Dec.,08,0 9,,000,, 8,0 8,0,9 8,000,9,,09,0 9,09,8 89,89 0,. Nov. 8 0,,8,,000 9,,,8,9 8,,8,8,9,0,0 9,9 0,,,,8,0,00,,9, 8,9,0.0 Nov. 9, 9,90 8,08,000 0,08,,, 8,0,0,0,,,00 9,9 09,880 90,89,9.. Nov. 0,9,0 8,8,000 9,8,8,,8 8,8,,,,90,0 9,9 9, 8,8,. Nov. 9,0 0,8,000 0,88,,80, 8,0,,9,,90,0 9,9,8,0,09,,9,080 9,,8,9,8,9,,,9,,0,0 9,9 9,0.0 End of month 9 December November 800,9,80,8,9,80,, 0,8,00 8,90,9,8,9,, 8,,,9,0 9,89 9,8 8,0,,,8,000,8.,8, 8,0,9,,,0,0 9,9 8,9 88,8,8 MATURITY DISTRIBUTION OF LOANS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In thouss of dollars]. 9 December 9, 9,8 9,8,,98,,,,88,0,,,,,00 0,8,0,0 9,88 8. December, 9 Within days to 0 days to 0 days to 90 days 9 days to months months to year year to years years to years Over years Discounts advances Industrial loans U. S. Government securities 9,0,08,0,,,9,0,8,00,0,,900,,0,0,98,89,,0,8,090 0, 90,90* FEDERAL RESERVE BULLETIN

45 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS [In thouss of dollars] Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Assets Gold certificates: Nov. 8 Dec. Dec. Dec. 9 Dec. Redemption fund for F. R. notes: Nov. 8 Dec. Dec. Dec. 9 Dec. gold certificate reserves: Nov. 8 Dec. Dec. Dec. 9 Dec. cash:.. Nov. 8 Dec. Dec. Dec. 9 Dec. Discounts & advances: Secured by U. S. Govt. securities: Nov. 8 Dec. Dec. Dec. 9 Dec. : Nov. 8 Dec. Dec. Dec. 9 Dec. Industrial loans: Nov 8 Dec. Dec. Dec. 9 Dec. U. S. Govt. securities: Bills: Under repurchase option: Nov. 8 Dec. Dec. Dec. 9 Dec. bills: Nov. 8 Dec. Dec. Dec. 9 Dec. Certificates: Nov. 8 Dec. Dec. Dec. 9 Dec. Notes: Nov. 8 Dec. Dec. Dec. 9 Dec. Bonds: Nov. 8 Dec. Dec. Dec. 9 Dec. U. S. Govt. securities: Nov. 8 Dec. Dec. Dec. 9 Dec.,0,,,,,0,0,,0, 0,,08,0 9,8 800,,8,90,89,,89,08,8,9,8,9,8,0,, 0,, 9,,0,8,0,000,000,000,000,000,,,,,08,8,9,8,0,,,,0,8,0 8,,8 8,0,9,9,9,9,09,9,9,8,9 8,, 8,0, 8,, 8,,,0,0,09,0,0,0,9,0,9,C 9,9 9,09 9,89 9,89 9,89,,8,,,9,.8,0,0, 9,9 9,9,90 0,0 80, 9, 9,8 9, 9,89 9,89 89, 88,80 80,,9 89, 0, 9,0, 8,8,, 0,90,8,98,00,9,9,9,9,9 0,0 8,9 8,89,08,,9 8,9,,9 0,8,00,0 9,08,8 9,9,,0,0,,,0,,9,,00,0,,09,9,,8 l,,<r,09,,9,,09,0,9,0,89,8,0,90,09 0, 0,008,,8,0,,0,,89,8,08,9,8, 0,, 9,8,0, 0,0 0,80 9,8 8, 9,0,0,0,0,0,0,9,8,,,00,,88,0,0,08,0,00,00,00,00,8,9,0,8,08,0,08,00,00,,0,0" 8,,,8 9,8 9,9,88,89,9 8, 8, 8,9 88,8 8,,0,8,9,, 88,8,89,,,9 9,,,9 89,,09,0,8,88,0,0,,9 89,0,8,9,,0 T,0,,, 9,,9,0,00,890,0,8,, 9,,,,0,0,08,0,,,,,8,, 9,0,80,8,80,,,,,,,0,9,,889,8 09,, 8,00 0,90,9,9, 8,8, 8, 0,89,9 9, 0,98 0,,:,9,9,,,88 0,8 0, 0, 0,,,9,09, 9,,,,,00,0,0 9,9,,0,08,,0,8,00,,,,,0,00,80,00,8,,,,,00,,00,09,0,8,8,, 8,0 8,0 0,9, 8,,98,8 8,00,90,0,900 9,0,089,089,089,089,089 8,,0 8,8 0,8 9,,0,8,0,8,0, 9,8 9,9,0 90, 9,, 8,80 9,: 00,88 0,09 0,0 0, 9,0 9,8 90,0 90, 90,,8,8, 0,08 0,08,89,9,0,,,00,0,0,00,,9,9,9,9,9,8 9,0,9,8,,9,0,09,8,0,080 0,8 9,09 98, 0,0,0 8,0 9, 0, 0, 0, 8,8 8, 8, 8,,9,9,,90,90 0,9,0 0,, 0,,90,00,00 00,00,,,,,,90 8,90,0 8,90 0,0,80,9 0,9 0,0,0,,8,09,8,8 8, 9,,8,9,0,0,0,0,0,0 0 0,9,00,,0,,8 0,9,,9 0,9,,0,08,90,9,,890,9,08,0 0,0,0, 0,90,0, 0,9,00,9, 0,0 0,9 0,8 0,9,0,9,,9,0 89,0 9,0 8, 88, 0,9,,090,0,89,9,,,,,09 0,0,9,9 8,,8,,0,08,, 9,89 8, 9,,,8,9,0,,, 9,8 0,80 9,9,0,0,0,0,0,0,0,8, 90,9,09 0, 0,09 00,, 80, 88, 9,0,9,,98 8,0 0,9 0, 0,88 08, 08,88 0, 8,90 8,0 8,9 8, 0,9 0,9,0,, 0,9 0,8 0, 0, 0,,90,88,8,,9,80,8 8,,,88,,00,00 00 ',,08,08,08,08,08,0,,8 8,8 0,88 00, 8,9 8,0 8,0,8 0,9 8,8,80,09,, 8,0 8,9 8,9 8,9,8,,9,,,, 00,9,0 8,,0,9,9,,,8 9,9,0 0,8,,900,0,8,09 0,8,900,900,00,00,800,0,0,0,0,0,8,0 9,,09,9 0,8 9,9 98,8 8,9 8,09 8,90. 0,9 0,0 0,90 0,0 0,8 0,98 0,8 0,8 8,98,,0,9,9,8,88',,80,8,08,9,,,9,8,9,0,,90,0,,,9,0,8,,,,0,00,8,8,8,0,0,8,0,,8,8,9,809,8,9,,80,,,,09,0,88,,09,8,8,,8,,,8,,,8,,88,0,0,0,00,088,0,9,,,0,0,8,,9,,9,8,,08, 9,8,08,8,09,,09 8,9,8,90 89,,,,98,0,90,,8,8,88,,,, 9,8 9, 0,00,8,8 8,8,0, 8,98,,,0,0,8 9,9,, 98,89,90,0 8,90 9,00 8, 8,8 9,09,0,0,0,0,0,9,08,8,8,9,0 0, 0, 9,8 0, 8,00 8,80,0,00 0,000,,,,,,,,0,,9,9 0,.9,9 00,,0,,0,0,0 9, 0, 0,9,, 90, 9,8 9,89 9,9 9,89,0,,,9,,90,09 9,9 9,9,0,,9,,, 9,98 9,8 9, 98,8 98,9 9,8 89,0 88,8 88,80 88,89 90,8,,0 90,90,9, 90,09, ,9,8,90 98,98,8, JANUARY 9

46 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS Continued Boston New York [In thouss of dollars! Atlanta Chicago St. Louis Philadelphia Clevel Richmond Minneapolis Kansas City Dallas San Francisco loans sec: Nov. 8 Dec. Dec. Dec. 9 Dec. Due from foreign banks: Nov. 8 Dec. Dec. Dec. 9 Dec. Federal Reserve notes of other banks: Nov. 8 Dec. Dec. Dec. 9 Dec. Uncollected items: Nov. 8 Dec. Dec. Dec. 9 Dec.. Bank premises: Nov. 8 Dec. Dec. Dec. 9 Dec. assets: Nov. 8 Dec. Dec. Dec 9 Dec. assets: Nov. 8 Dec Dec Dec. 9 Dec. Liabilities Federal Reserve notes: Nov. 8 Dec. Dec. Dec 9 Dec. Deposits: Member bank reserve account: Nov. 8 Dec Dec. Dec. 9 Dec. U. S. Treasurer general account: Nov. 8 Dec.... Dec. Dec. 9 Dec. Foreign: Nov. 8 Dec. Dec. Dec. 9 Dec. : Nov. 8 Dec. Dec. Dec. 9 Dec. deposits: Nov. 8 Dec. Dec. Dec. 9 Dec. Deferred availability items: Nov. 8 Dec. Dec. Dec. 9 Dec.,0,0,8,,80,,00,,0, ,9,0,,88,9,890,0,98,0,0,,,,09,,8,,,,,, 8,88,,08,,8,,908,89,,0,,80,,0,00,,0,9,8,,0,,9,80,8,,00,8,,,9,9,8,0,9,,,8,9,90,9,,8,,8,9 8,0,98,0 8,9 89,89 88,80 8,008 8,,0 0,,8 9,8 8,880 8,9,8,,8,,9,90, 8,8,0,,88,8,89,8,9,88,,8,,8,89,,09,8,,80,8,,,8,,,8,98,00 8,9, 9,0,,9,9,9,9,9,9,,90,,008,0,8,,9,0,,,8,,8,80,,8,,800,8,0,0,9,8,,9,,8,8,,9,8,8,00,,98,,,9,,8,0,0,8,8,,0,0,88,8,80,90,0,89,,8,,0,0,,,,8,,,8,8,9,,0,08,80,,,,,,8,0,,,9,80,89,9 89,, 98,0 9,08 8,8 8,90,9 9,9,8,9,0,,,88,0,,,90 88,00 8, 809, 89, 90, 0,80,8,0,0 0,90,,,90,9,9,0,98,80,9,89 0 HO ,8,0,888,89,0,9 89,0 89,0, 8, 8, 8,9 8,9 8,9 8,9,,0,00,9,,8,9,0,,,,,89,,8,,,,,,98,0,,,09,,9,9,9,8,,880,,8,9,89 8,80,9,9 9, 8,9 9,90,,98,98, 9,8 9,880,,,,8,0,,,,,8,00,8 0, 9,, 8,9,,,,,,8,,,,,0,09,08,9,9,988,,,8,8,,0,,,,,,,,,,9,9,8,,00 0,9,,8,,,,,,,9,0,9,80,988 80,8,9,800 8,09,, 8,89,80,0 8,00,,8 8,,0,,09,98, 8,,,,8 0,,89,,8,9,,0 90,,,0 900,9,0,80 8,9,0, 88,88,00,0 9,8,,8 9, 89,9 0. 0,0,,9, 8, 9,8 0,0, 90, 88,0,0,008,8,8,8,8,989,88,88,0,0,9,0,,08,,09,,0,008,,,8 8,9 9, 9,,,8,9 9,9,,8,0,,,9,90,00, 8,00,,9 9, 0,9,8,,980,0,, 8,0,,,,,9,,8,8,9,9 8,0, 0,,89 0,00 8, 0 0,80,0,,,,,,9,8,,8,8,8 9, 80,,9 80,0 8,8,9 8,, 8,8 8,,0,,09,:,8,,8,:,0, 9,90 0,0 0,0 0,8 9,0,, 9, 8,0,9,,,,,9,00,8,0,8,09,,00,,88..,,,0,8, 90,8,,,8,09,0,,,8,88 *,,,0,0,9,8,9,,,,0,8,8,009,90,,8,9,0, 9,0,8,98,,8,98 8,88 8, 9,9 8,9 9,0 9,,88 8,9,9,00,8,9,,0 80,9 88,8 80,, 0,8 0,9,,0,,,9,09,89,,0,088,0,,,08,,98,8,08,0,80,,00,,8,9,0,0,8 98,,8,88 0,890,88,,,,, 9, 9,0 9,0 8,8 8,989,,9,0,08,,,,0,,8,0 98,0 0, 9,9 0,9 09, 09,00 0,80 0,98,,9,,9 9,,,8,,,,,0,,8,0,889,9,9 90,9 0,0 8,9 8,9 8,80, 8, 8, 90, 0,9,90,,0,0,0,0,0,9,0,,,98 0,8 89,88 9,9 0, 9,09,8 8,98, 0,08,8,0,,90,8,08, 0, 0,0 9,80, 8,,88 8,90 9,,,9 8, 80,0,0,8:,, 9,09,9,89,,09,89 8,08,0,,,0,088,98,00,0,98, 9,0, 9,09,80,,,8,8,8,8,8,90,9,9,,0,,0,,0,8,0,9,00,9, 9,,0,9,8 89,,, 9,0 88,8,0,8, 8,09 8,9 9, 9,8 8, 8,90,,088,800,0,, 09,8,0,90,8 8, 8,9,9,9,0,8,098 8,9,8 8,0 0,88 0,8 0,88,0 0,,0,9,9,9,9,,,,8,9,8,,8,89,89,,8,98,8,8 90,9 90,00 90,8 9,0 9,0 808, 80, ,80 9,8 0,,80 9,,89,98,8 0,,90,8,80,88, , 8,9 8,8 8, 8, 9,8 9,80 9,98 90, 8,0 90,8 90,0 90,9 90, 90,9,,,,0, 8,89,0 8,80 0,0, ,9,0,00,89,90,89,,0,9,8,0,,8,,8,9,0,,9,; 8,,,09,0,08,,,8,,90.0,9,9,0,,8,08,9,9 8,,0,9,8,00,,,988,0,80,00,0,8,0, 0,9 98,,9 8,0,8,0,,90,8,0,0,,,,0,,989 9, 809, 9,,0 0,,8,88,8,0,8,,,0,8,8,8, , 9,,0,0,9 0,9 9,8 0,,8' 0,,89,89,89,89,8,,0,,90, 9,89,,8,,,,9,80 0,,,8,0 8,98 9, 0,0,0,8,,,,0,,9,9,9 8,0, 8,0 9, 8, After deducting $0,000 participations of other Federal Reserve Banks. After deducting $,89,000 participations of other Federal Reserve Banks on Nov. 8; $8,0,000 on Dec. ; $,9,000 on Dec. ; $08,,000 on Dec. 9; $,80,000 on Dec.. FEDERAL RESERVE BULLETIN

47 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS Continued [In thouss of dollars] Boston New York Atlanta Chicago St. Louis Philadelphia Clevel Richmond Minneapolis Kansas City Dallas San Francisco liabilities including accrued div.: Nov. 8 Dec. Dec. Dec. 9 Dec. liabilities: Nov. 8 Dec. Dec. : Dec. 9 Dec. Capital Accounts Capital paid in: Nov. 8 Dec. Dec. Dec. 9 Dec. Surplus (section ): Nov. 8 Dec. Dec. Dec. 9 Dec. Surplus (section b): Nov. 8 Dec. Dec. Dec. 9 Dec. capital accounts: Nov. 8 Dec. Dec. Dec. 9 Dec. liabilities capital accounts: Nov. 8 Dec. Dec. Dec. 9 Dec. Commitments to make industrial loans: Nov. 8 Dec. Dec. Dec. 9 Dec.,88,,09,90,8,089,,,0,,08,,,0,,,09,0,9,8,,,9,08,8,,,,,8 8,. 8, 8, 8, 8,,,,,,,9,89 9,8 0,9,08,,8,,908,89,,0,,80,,,9,9,90, ,8 0,8 0,8 0, 0,,9,9,9,9,9,,880,880,,880 8, 9,8 9, 9, 9,0,0,8,,9,0,,0,0,9,8,,9,,,9,,8,0,0,89,,8,,0,,0,08,,,, 889,98 80, 88,0 8,,9,8,,08,8,9,09,90,09,089,08,,,0,00,8,,,8,9,,900,8,8,0,00,,0,9,98,,0,0,, 8,90 8,90 8,90 8,90 8,90,,,,,,89,,00,9,9,0,08,00,08,08 9,8 9,8 9,8 9,8 9,8,8,8,8,8,8 0,0 0,9 0, 0,8 0,9,0,8,,9,809,,0,0,8,,,8,,80,9 9,0 9,0 9,0 9,0 9,0,00,00,00,00,00,08,9,,8,,,8,,8,0,8,0,,, ,,,,0,,0,0,,08,0,089,098,0,,,8,8,8,8,8,90,90,90,90,90 9,0 9,8 9,8 9, 9, ,,8, 0,,8,80,0,,9,08,,,,,90,8,0,,,09,,0,0,,,9,9,9,9,9,9 8,0 8,89 8, 8,0,8,9,0,8,88 0,9 0,9 0, 0,8 0,,0,0,0.0,0,9,9,9,9,9,0,,,8,,,8,80,,8,,8,,9,8,8,00,8,,0,0,88,8,,,8,,,8,,8,0,,,9 0,80,,,,8,,8,9,8,,9,0,,9,8,08,08,08,08,08,080,0,,0,8,800,8,,98,80,90.8,9,80, ,08,80 8,,00,,0,88,0,,9,9,,8,8,90,90,90,90,90,0,0,0,0,0,,,,, ,8,,8,08,89,0,8,9,8,08,00,00,0,8,,9,9,9,9,9,,,,,,9,0,,, ,0,,,080 [,,,0, I,98,0,0,8,9,,,9 I,0,88,9, =,98,98,9,90,00,0,0,0,0,0,0,0,0,0,0,0,00,8,8,,0,,8,,89,,0,9 I,0,,8,89,8,0,,8 I,0,8,89,,,8,9,0 i,0,9,8,98,,9,,8,00,9,8,8,,,09, ,,8,,9,0,088,,88,9,9,8,8,8,8,8,,,,,,0,9,9,8,980 9 Federal Reserve notes outsting (issued to Bank): Nov. 8 Dec. Dec. Dec. 9 Dec. Collateral held against notes outsting: Gold certificates: Nov. 8 Dec. Dec. Dec. 9 Dec. Eligible paper: Nov. 8 Dec. Dec. Dec. 9 Dec. U. S. Govt. securities: Nov. 8 Dec. Dec. Dec. 9 Dec. collateral: Nov. 8 Dec. Dec. Dec. 9 Dec. FEDERAL RESERVE NOTES FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thouss of dollars],8,,,89,,,8,8,08, 0,8,000 0,0,000 0,88,000 0,8,000 0,,000,0,0, 0,90,,,8,8,,90,9,,09,0,,09,0,,0,8,9,9,9,0, Boston New York,0,,,8,8,0,,0,08,,,00,,0,,0,9,,,,88,0,9,,,0 8,0,9,00,,0,,,8,9,,88,80, 0,000,0,000 0,000,0,000 0,000,0,000 0,000,0,000 0,000,0,000, 0,90,8,98,00 0,0 0,80 9,8 8, 9,0 0,000 80,000 90,000 90,000 00,000 9,0,80,8,80,,00,000.!, 00,000,00,000,00,000.!, 00,000,00,000,00,000,00,000,00,000,00,000,00,000,00,000,00,000,00,000,00,000 9,000,000 0,000 0,000,000,0,000,00,000,00,000,0,000,0,000,0,,,,8,,9,8,80,,000,000,000,000 0,000,00,0,0,0,9,,000,,000,,000,,000,,000 Chicago St. Louis Philadelphia Clevel Richmond Atlanta Minneapolis Kansas City Dallas San Francisco,,0,08,0,.,89,,98,,0,,80,,0,,,,90,,,09,00 0,89,0,8 0,0,08,09.,,,98,8 9, 9,0 98, 0,0,, 9,,,8,089 9,9 0,9,8,88 9,0,8,9, 9,0,0,9, 0,000,090,000 0,000,0,000 0,000,0,000 80,000,0,000 80,000,890, ,000,0, ,000,0, ,000,00, ,000,00, ,000,00,000 00,000,000 00,000,000 00,000,000 00,000 0,000 00,000 0,000 9,8 0,80 9,9,0,0,00,00 00 ",000 8,8 00,000 8, 00,000 8,9 00,000 88,09 00,000 89, 00,000 80,000,000 80,000 9,000 80,000 9,000 80,000 9,000 80,000 9,000,900,900,00,00,800,9,000,9,000,9,000,9,000,9,000 8,00 8,80,0,00 0,000 00,000 00,000,800,000 00,000 00,000,900,000 00,000 00,000,900,000 00,000 00,000,900,000 00,000 00,000,900,000,,,80,0,9,0.,,000,80,00,0,000,0,000,9,9,00,00,900,000,,00,0,90,00,80,8,80.,,000,80,0,0,000,0,000,8, 9,00,00,900 9,000,9,80,,8,9, ),8,9,8,0,000,8,0,0,000,90,000,8,8,00,00 9,000,8,0,,98 >,8,,9,80,80,000,8,0,80,000,90,000,0,9 0,000,00 9,000,0,00,8,00,89, >,0,0,,8,000,88,9 80,000,90,000,0,9,000,800 9,000,9,000 JANUARY 9

48 WAR PRODUCTION LOANS GUARANTEED BY WAR DE- PARTMENT, NAVY DEPARTMENT, AND MARITIME COMMISSION THROUGH FEDERAL RESERVE BANKS UNDER REGULATION V [Amounts in thouss of dollars] Date 9 0 Sept. 0 Dec. 9 Mar. 0 Sept. 0 Dec. 9 Mar. 0 Sept. 0 Dec. 0 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug. Sept. 0 Oct. Nov. 0 Guaranteed loans authorized to date Number,8,,,,8,,90,,88,,8,0,88 8,08 8,8 8, 8, 8, 8,9 8, 8, Amount 0,80 9,0,88,9,,,8,88,,98,,08 Guaranteed loans outsting amount 8,08,98 80,0 Portion guaranteed 9,,,,, 9,9,8,,,,08,0,,9,9,00,0,8,,,009,,80,0 8,0,,0,8,, 8,8,,90,8,,89 9,0,8,,90,8,08 9,0,00,,8, 9,,,,0,0, 9,,8,0,, 9,8,9 8,0,,00 0,0,,9,8,, 0,9,,8,8,90,9 0,,00,,8,09, 0,9,,,88,0,0 0,,88,0,89 9,8 0,, 8,,9 0,,88,09, Additional amount available to borrowers under guarantee agreements outsting,888 0,0,0,,8,8,,0,9,8,,8,,9,80,9,0,,,8,9,08,9,80,9,9,00,,,,9,8,,9,0,,0,,8,,0, NOTE. The difference between guaranteed loans authorized sum of loans outsting amounts available to borrowers under guarantee agreements outsting represents amounts repaid, guarantees available but not completed, authorizations expired or withdrawn. INDUSTRIAL LOANS BY FEDERAL RESERVE BANKS [Amounts in thouss of dollars] Date (last Wednesday or last day of period) Dec. 9 0 Dec. 9 0 Dec. 0 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug. Sept. 0 Oct. Nov. 0 Applications approved to date 98,,80,0,,8,908,0,,,,,8,89,9,9,9,00,0,0,0,0,0,08,09 Amount 9,,9 9,89 0,98,0 88,,0 9,80 8,8 08,,8 9, 0,8,,9,00 8,9,0,, 8, 9, 0,,090, Number Approved but not completed (amount) 0,9,8 8,,9,9,9,9 8,9,,8,0 9, , ,0 0 Loans outsting [amount),89,9, 0,,,8 9, 0,,,,0 0,,,89,0,9,,,9,,,9,,0, Commitments outsting (amount) 8,,9 0,,80, 9,0,,9,8 0,, 9,0,08,,,,,8,9,,,08,9,9,9 Participations outsting (amount),9 8,8,08,8, 0,98,8 9,00,0,0 9,00,90,0,0,0,,,,9,0,,8,08,8, Includes applications approved conditionally by the Federal Reserve Banks under consideration by applicant. Includes industrial loans past due months or more, which are not included in industrial loans outsting in weekly statement of condition of Federal Reserve Banks. NOTE. The difference between amount of applications approved the sum of the following four columns represents repayments of advances, applications for loans commitments withdrawn or expired. MEMBER BANK RESERVES AND BORROWINGS [Averages of daily figures. In millions of dollars] Month, or week ending Friday reserves held: 9 Oct Nov 9 Oct Nov Nov. Nov. 9 Nov. Nov. Nov. 0 Dec. Dec. Dec. Excess reserves: 9 Oct Nov 9 Oct Nov Nov. Nov. 9 Nov. Nov. Nov. 0 Dec. Dec. Dec. Borrowings at Federal Reserve Banks: 9 Oct Nov 9 Oct Nov Nov. Nov. 9 Nov. Nov. Nov. 0 Dec. Dec. Dec. All member banks,80,0,,0,80,9,08,09,,,88,98 98,0,0,,00,0,9,9,00,, PI, Central reserve city bankvs New York,8,0,8,,,9,,,,0,0, Chicago Reserve city banks,0,,,8,0,,89,0,,,0, Country banks,0,,,0.,0,0,,8,,, ,0,0 ", P Preliminary. i Weekly figures of excess reserves of all member banks of country banks are estimates. Weekly figures of borrowings of all member banks of country banks may include small amounts of Federal Reserve Bank discounts advances for nonmember banks, etc. DEPOSITS OF COUNTRY MEMBER BANKS IN LARGE AND SMALL CENTERS i [Averages of daily figures. In millions of dollars] November 9 October 9 November 9 Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco... In places of,000 over population Dem deposits except interbank,8,,,0,0,0,8,0,8, ,0 Time deposits,,8,0 8,8 0 88, In places of under,000 population Dem deposits except interbanks 8,80 0,80,0 9,0 8 80,8 9,,8 8 Time deposits,90,09,088 0, Includes any banks in outlying sections of reserve cities which have been given permission to carry the same reserves as country banks. All reserve cities have a population of more than,000. Includes war loan deposits, shown separately for all country banks in the table on the following page, i FEDERAL RESERVE BULLETIN

49 DEPOSITS, RESERVES, AND BORROWINGS OF MEMBER BANKS [Averages of daily figures. In millions of dollars] Class of bank Federal Reserve district Gross dem deposits Interbank U. S. Government war loan deposits Dem deposits adjusted Net dem deposits Time deposits Dem balances due from domestic banks Reserves with Federal Reserve Banks First half of November 9 All member banks Central reserve city banks: New York Chicago Reserve city banks Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Country banks Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 9,8,,8,0,,,0,8,0.,09,.9,9 8.0,8.9, ,,8,9,0, ,0, ,,, , ,,8,8,08, 0,9,,9.,,0,9,,00,0,00,..0,,90,0.0,09,80,098,80,,0,0,0,,80,,,,9,0,,,0,,90,,8,0,8,80,9,,09,9,0,,0 0,9,88,9,,9.,,98,,0 89,,9,8 0,0,88,,0,,9,0,0,9 908,,0,09,9 9, 0, 8 9, 0,8 8 8,,,8,88, 98, 00 0,, , ,9, ,8, 90, ,8, ,8, 90, , * 9 0 i' Second half of November 9 All member banks Central reserve city banks: New York Chicago Reserve city banks Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Country banks Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 9,8,9,,0,,,,0.,,00,0,0, 8, 8,,90,8,0, ,.,,9,, , ,,0, , ,0.909,0,, 80,.9,9,8,09,,,,8,,0,,8.098,0,,0,0.0,8,0,9,,0,,8,,80,,9,0,89,0,,,,,,,9,0,8,88,00,9,0,80,0,0,8 0,900,,,09, 8,,,8 88,8, 98,9 0,,8, 8 9 0,,8 90,,8,9,98, 0 9, ,, 8 8 8,,0,8,8,9 00, 9 0 0,8 0 9, , ,0,88 90, ,9, ,,, ,, , "* Averages of daily closing figures for reserves borrowings of daily opening figures for other columns, inasmuch as reserves required are based on deposits at opening of business. Figures include Series E bond deposit accounts, but do not include certain other dem deposits of the U. S. Government with member banks, therefore, differ from figures for U. S. Government deposits shown in other published banking data. See also footnote.»preceding column minus (a) so-called "float" (total cash items in process of collection) (b) U. S. Government dem deposits (other than war loan Series E bond accounts) on the latest available call report date. Dem deposits subject to reserve requirements, i. e. f dem deposits other than war loan deposits, minus cash items in process of collection dem balances due from domestic banks. Includes some interbank U. S. Government time deposits; the amounts on call report dates are shown in the Member Bank Call Report. JANUARY 9

50 UNITED STATES MONEY IN CIRCULATION, BY DENOMINATIONS [Outside Treasury Federal Reserve Banks. In millions of dollars] End of year month in circulation Coin small denomination currency Coin $ $ $0 $0 Large denomination currency $0 $00 $00 $,000 $,000 $0,000 Unassorted ,9,,88,,0,8,98 8,,0,0,,9,8,0,0,,, 8,0, ,09,9,,9,9,88,,,0,,,0,,0,,,9,0,,8,,800,,09,0,,9,0,,,08,89,0, , ,, November. December. 9 January... February.. March April August September. October... November. December. 9 January... February.. March.... April August.... September. October... November. 9,98 0,9 0,9 0,8,,,0,0,,9,9,,09,0,90,,8,89,8,,08,8,8 8,09 8,,98,8,8,00,00,,,9,0,0,,089,,80,,8 8,000 8, 8, 9,8 9, 0, 0, 0,8 0,00,00,09,0,08 09,09,0,0,0,09,0,, , ,00,00,000, ,90,9,90,9,9,9,00,00,0,0,08,0, ,0,0,88,, , , ,8 9,00 9,09,,80,,8,0,,,8,,88,08,9,,0,8,9, ,,,8,09,,,8,8,,,80,89,89,9,,0,09, ,,,9, ,8,,,0,9,0,0,08,0,, of amounts of coin paper currency shown by denominations less unassorted currency in Treasury Federal Reserve Banks. Includes unassorted currency held in Treasury Federal Reserve Banks currency of unknown denominations reported by the Treasury as destroyed. Paper currency only; $ silver coins reported under coin. Back figures. See Banking Monetary Statistics, Table, pp.'-. UNITED STATES MONEY, OUTSTANDING AND IN CIRCULATION, BY KINDS [On basis of circulation statement of United States money. In millions of dollars] outsting. Nov. 0, 9 Money held in the Treasury As security against gold silver certificates Treasury cash For Federal Reserve Banks agents Money held by Federal Reserve Banks agents Nov. 0, 9 Money in circulation Oct., 9 Nov. 0, 9 Gold... Gold certificates Federal Reserves notes Treasury currency total Stard silver dollars Silver bullion Silver certificates Treasury notes of Subsidiary silver coin Minor coin United States notes Federal Reserve Bank notes National bank notes November 0, 9 October, 9 November ,00,9,8,0 9,, (0 ( ) ( ) ,9 9,9 0,8, ", 9,,.0,0,0,,8 8,9,9,90,,0, ,,008,0, '8,9' ',00, Outside Treasury Federal Reserve Banks. Includes any paper currency held outside the continental limits of the United States; totals for other end-of-month dates shown in table above, totals by weeks in table on p. 0, seasonally adjusted figures in table on p. 9. Includes $,800,000,000 Exchange Stabilization Fund $,09, held as reserve against United States notes Treasury notes of 890; the balance resulting from reduction in weight of the gold dollar, also included, is not shown in the circulation statement beginning. To avoid duplication, amount of silver dollars bullion held as security against silver certificates Treasury notes of 890 outsting is not included in total Treasury currency outsting. Because some of the types of money shown are held as collateral or reserves against other types, a gr total of all types has no special significance is not shown. See note for explanation of these duplications. NOTE. There are maintained in the Treasury (i) as a reserve for United States notes Treasury notes of 890 $,09, in gold bullion; (ii) as security for Treasury notes of 890 an equal dollar amount in stard silver dollars (these notes are being canceled retired on receipt); (iii) as security for outsting silver certificates silver in bullion stard silver dollars of a monetary value equal to the face amount of such silver certificates; (iv) as security for gold certificates gold buuion of a value at the legal stard equal to the face amount of such gold certificates. Federal Reserve notes are obligations of the United States a first lien on all the assets of the issuing Federal Reserve Bank. Federal Reserve notes are secured by the deposit with Federal Reserve agents of a like amount of gold certificates or of gold certificates such discounted or purchased paper as is eligible under the terms of the Federal Reserve Act, or of direct obligations of the United States. Federal Reserve Banks must maintain a reserve in gold certificates of at least per cent, including the redemption fund which must be deposited with the Treasurer of the United States, against Federal Reserve notes in actual circulation; gold certificates pledged as collateral may be counted as reserves. "Gold certificates" as herein used includes credits with the Treasurer of the United States payable in gold certificates. Federal Reserve Bank notes national bank notes are in process of retirement.,0 80 9,09 8 FEDERAL RESERVE BULLETIN

51 MONEY IN CIRCULATION WITH ADJUSTMENT FOR SEASONAL VARIATION [Outside Treasury Federal Reserve Banks. In millions of dollars] Date End of year figures: Monthly averages of daily figures: 9 Mav... August September October November December Amount unadjusted for seasonal variation,98 8,,0,0 0,9 0 P8,0 8,9,80,988,, _,8,0,,,80,009,,,98,9,,9 8, 8, Amount adjusted for seasonal variation 9,08,0,,,,9,,,98,9,,9,9,0,8,9 8,0 8,0 Change in seasonally adjusted series + +, +,8 +,0 +,09 +,88 P+, p Preliminary. For end of year figures, represents change computed on absolute amounts in first column. NOTE. For discussion of seasonal adjustment factors for back figures on comparable basis see September 9 BULLETIN, pp Because of an apparent recent change in the seasonal pattern around the year end, adjustment factors have been revised somewhat for dates affected, beginning with December 9; seasonally adjusted figures for money in circulation, as shown in Banking Monetary Statistics, Table, p., described on p. 0, are based on an older series of adjustment factors ANALYSIS OF CHANGES IN GOLD STOCK OF UNITED STATES fin millions of dollarsl Period Gold stock at end of period 8,8 0, HI,8,0,,,,98 0,9 9 November.. 0,88 December.. 0,9 9 January.... 0,0 February... 0,0 March 0,9 April... 0, 0,0 0, 0, August 0,088 September.. 0,0 October... 0,0 November.. 0,00 December.. P0.0 Jan.-Dec.... P0.0 Increase in gold stock,0.,88.,0.,.,.0, , P. P-.9 Net gold import,.9,9.0,8.,9.,., ( ) ( ) 9--January February March April August September October November December Earmarkemestic Do- gold: decrease pro- gold or increase ( ) tion duc s '. /. P. P Preliminary. f Figure carried forward. Annual figures are estimates of the United States Mint. Monthly figures are those published in table on p. 90, adjusted to exclude Philippine Isls production received in United States. Figures based on rate of $0. a fine ounce in January 9 $ a fine ounce thereafter. Includes gold in the Inactive Account amounting to million dollars on Dec., 9,,8 million on Dec., 9. Not yet available. Gold held under earmark at the Federal Reserve Banks amounted to,9.8 million dollars on Dec., 9. All of this was earmarked directly for foreign account except 0.8 million dollars which was earmarked in the name of a domestic bank as security for a foreign loan. NOTE. For back figures, see Banking Monetary Statistics, Table, pp. -8, for description of statistics see pp. - in the same publication. BANK DEBITS AND DEPOSIT TURNOVER [Debits in millions of dollarsl Year month Debits, all reporting centers to total deposit accounts except interbank accounts New York City 0 other centers reporting centers Annual rate of turnover of total deposits except interbank New York City other reporting centers Debits to dem deposit accounts except interbank Government New York City 00 other leading cities Annual rate of turnover of dem deposits except interbank Government New York City 00 other leading cities '.'.'.' old series* 9 new series 9 9,889 9, 0,,9 8, 0,0,8 9,9 89,90 08, ,8,8,8 9, 0,9,8 9,8,8 9,0,0 0, 8,98 9 9,9,0,8 9,,8,0, 9,9,9,0 8,90. i ,8 9,,9,, 9,9 00, 8,98 98,90 0,,090 8,0 00,, 0,9 08,9 9,9 0, ^ November December 9 January February March April... August September October November, 9,8 8, 0,9 8,0,9 8, 98,0 9,,08,9 8, 9,0 0,0,8,0 9,0,88 9,,8,,90 9,88 8,,98, 0,8,90 0,0,,,8 0,, 8,8,,8 9,00 9,,8 8,,,,,88,0 8,8,8,0,90,, ,,0 0,8, 8,9, 8,8,9 9,90,80, 9,0 8,, 0,9,80 0,0,008,0,8,80, 0,9 0,,, NOTE. Debits to total deposit accounts, except interbank ace ies; subsequent figures include 9 centers, deposits debits of new series for first four JANUARY 9 9

52 DEPOSITS AND CURRENCY ADJUSTED DEPOSITS OF ALL BANKS AND CURRENCY OUTSIDE BANKS [Figures partly estimated. In millions of dollars] End of month deposits adjusted currency outside banks dem deposits adjusted currency outside banks deposits adjusted Dem deposits adjusted United States Government deposits Time deposits Commercial banks' < Mutual savings banks Postal Savings System Currency outside banks December 9 December 9 December 98 December December 90 December,,,80,8,8,9, 8,9 0,9,0,9 0,,9, 9, 9,8 0,8 9,9 9,0,,0,9 8,,0,,,,,9,00,8,80,98,98 0,,,0,809,,0,98,,,98, 9,9,9, , , 8,89,,,90,8,,0,9,09,,8 9, 9,9 0,89,09,,9,,,09,8,0, 8,90 8,88 9, 9,88 0, 0,0 0,09 0,8 0, 0, 0. 0,8 9 9,8,08,,9,,,,8,9,0,9,,,8,89,8,,,00,0,, 9 December 9 December 9.. December 9 9 November December 9 January February March April p August? September P.... October? November?, 8, 8,9,0 0,,8,,00 0,988,00 0,800 0,00 0,900,00,8,00,00,800,800 8,00, 8,0,80,88,8 9,0 80,9 9,800 90, 9,00 9,800 9,00 98,00 00,800 9,0 9,00 00,000 0,00 0,00 0,000, 8,,0 8 9, 0,9,9 9,900,8,00,00,00,00,800,88 8,000,00,00,00,00, 8,,80 8,9,09 0,80 0,0,00,90 8,00 9,00 0,900,00,000 9,0,00,000,00 8,00 80,00,89,8 8,0 8,08 0, 9,0 8,00 0, 8,00,00,00 9,800 8,00,8 0,800,00,00,00,00,89,9,0 8, 0,0,8,0 9,00 9,90 0,00,00,00,000,00.,00,00,900,00 8,000,98,88,0,, 9,,,00,0,00,00,00,00,00,,800 8,00 9,00 9,00 9,800 0,8 0, 0,9 0,,,8,,00,,00,00,900,00,00,,00,800,000,00,00,0,,,,,8,0,00,0,00,00,00,00,00,,00,800,800,900,900 8,0 9, 0,9,9,8 8,8 0,88,00,0,00,00,00,00,800,09,00,000,00,00,00 l P Preliminary. Includes dem deposits, other than interbank U. S. Government, less cash items in process of collection. Beginning with December 98, includes United States Treasurer's time deposits, open account. 8 Excludes interbank time deposits postal savings redeposited in banks. Beginning 9, the commercial bank figures exclude mutual sayings bank figures include three member mutual savings banks. Includes both amounts redeposited in banks amounts not so redeposited; excludes amounts at banks in possessions. NOTE. Except on call dates, figures are rounded to nearest 00 million dollars. See Banking Monetary Statistics, p., for description Table 9, pp. -, for back figures. End of month Dec Dec... 9 Dec... 9 Dec... 9 Dec... 9 Nov... Dec... Depositors' balances,9,0,.,88,0, 9 Jan...,0 Feb...,8 Mar..., Apr...,..,09..,9..,0 Aug...,8 Sept...,8 Oct. P.8 Nov... P,90 POSTAL SAVINGS SYSTEM [In millions of dollars],9,8,9,,8,,,,,90,,9,,809,8,9 Cash in depository banks Assets U. S. Government securities,9,,,,,,,08,,,,8,,,,,0,08,8,0,,,,08,,,,8,,,, Direct Guaranteed Cash reserve funds, etc P Preliminary. Outsting principal, represented by certificates of deposit. Includes working cash with postmasters, per cent reserve fund miscellaneous working funds with Treasurer of United States, accrued interest on bond investments, accounts due from late postmasters. Back figures. See Banking Monetary Statistics, p. 9; for description, see p. 08 in the same publication. BANK Number of banks suspended: Deposits of suspended banks (in thouss of dollars) : SUSPENSIONS l, all banks ,9,,0, 0 0 Member banks,,98 State Nonmember banks 89 8, 0,, 0 National Insured Noninsured 8,,,8,8 0,9 9 Represents banks which, during the periods shown, closed temporarily or permanently on account of financial difficulties; does not include banks whose deposit liabilities were assumed by other banks at the time of closing (in some instances with the aid of Federal Deposit Insurance Corporation loans). Deposits of member banks insured nonmember banks suspended are as of dates of suspension, deposits of noninsured nonmember banks are based on the latest data available at the time the suspensions were reported. Back figures. See Banking ]Monetary Statistics, pp. 8-9; for description, see pp. 8-8 in the same publication. 0 FEDERAL RESERVE BULLETIN

53 ALL BANKS IN THE UNITED STATES, BY GLASSES* LOANS, INVESTMENTS, DEPOSITS, AND NUMBER OF BANKS [Amounts in millions of dollars] Loans investments Deposits Class of bank call date Loans Investments U. S. overnment obligations securities Interbank* Dem Time Number of banks All banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 0 Dec. 9 0 Dec j\l\ commercial banks: 98 Dec.. Dec Dec.. 9 Dec.. 9 Dec Dec Dec insured commercial banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 0 Dec. 9 0 Dec All member banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 0 Dec. 9 0 Dec All national banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 0 Dec. 9 0 Dec State member banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 0 Dec. 9 0 Dec ' 8,8 0,88,0,0 8, 8,88 9,9 08,0 9, 9,9 8,9 0,,9 0,,9, 8,09 9, 0,0,0,0 9,89, 9,88,0,0 8,0 9,9 0,8,,00,9,, 9,,,8 8,8 9,9, 0,90,80,8,,,80,, 8,08,,8,0.8,90,8,0,9 0,,,9,,9,,,9,,0,,0,,, 8,9, 9,,0 9,,00,,,0,8 8,9,8 8,90,90 8,8 0,9,,,08,9, 8,0,088,8,88 8,08 8, 0,88 8,9 9,0 0,00, 0,8 9, 0,,,80,9,8,90,,9,90,9,,80,9 8,9,0 8, 0,9,8,,0, 8,8 9, 0,,0,,0 9,0 8, 8,9,98, 8,88 90,8,9,, 8,00,,880,,0 8,00 88,98 8,8 9,,80.00,,,90,0,89 8,88,,89,,8,9,,8,9,88 0,808,9,90 8, 9,, ,88,,0 8,00,9 9,0 0,98,88,9,8,9, 8,88 9,,0,00,9,88,,8 9,8 8,,8 8,09,0,,0,0 0,0, 8,8,08,8 8,0,,8,8 9,9,,980,98 0,9,8,9 8,9 9,08 9,,09, 0,0,0 8,0,9,0,,,088,00,80,88 8,88,,9,88 9, 9, 9, 8, 8,90,89,,, 8,00,,,,,80,,,90,9,,9,89,098,98,,,98,,,,0,,98,9,,, ,8,9,8,90,,,89,90,0,,980,8,0,,,8,9 8,,9 8,80,9 0,, 8,0,9,0,0,0,0,8 89, 9,08 0,9, 8,0,0 9,,09, 9, 8,80 9, 0,09,,,, 9,0,0, 8, 8,0 9, 0, 0,9 8,8,,9,8 9,8 0,8,89 9,9,8,88,,,8 0,,9,808 9,,0.90 9,09,8,8 9,88 0,9 0,989,8 0,89,0,9,,0,8 9,88 0,9 0,989,8 0,89,0,9,,0, 9, 0,9 0,, 0,8 0,0,08,0,0, 9,0 0, 0,,000 0, 0, 0,90,88,0,,898,,8,00,,9,0 8,0 8,,,,89,9,00,9,9,0,8,980 8,9,9 8,8,,9,, 8,88 9, 9, 8,9,9 8,8,,9,, 8,88 9, 9,,89,8,,0 0,0,09,09 8,0 89, 9,90,8 8,,89 8,8, 9,0,8,88 9, 8,00,8,9 0,88,0, 8,0,0,89 0,900,98 9, 0,,9,9 0,0,,8,09 8,8 0,0,0,80,0,,08 8,,088,9,9,0,8,,8,9,9, 9,0,,8,,9,0,89,9,, 9,08,0,89,9,9,,8,,,9,8,88 9,9,8,90 8,08 8,9 8, 8,0 9,9 0,9,0,90,8,9,,89,0,8,,0,80,,0,0,89,8,8,8,9,,,,,8,,,,0,0,009,,000,,,8,,,98,0,,,,8,,8,9,9,0,8,,8,80,,8,,,08,00,00,0,0,0,,,,0,98,,98,,89,8 * These figures do not include data for banks in possessions of the United States therefore differ from those published by the Comptroller of the Currency the Federal Deposit Insurance Corporation for national banks insured banks, respectively. Beginning 0, 9, excludes reciprocal bank balances, which on Dec., 9, aggregated million dollars at all member banks million at all insured commercial banks. During 9 three mutual savings banks, with total deposits of 8 million dollars, became members of the Federal Reserve System. These banks are included in both "member banks" "insured mutual savings banks," are not included in "commercial banks," are included. only once in "all banks." 8 Decreases in "noninsured nonmember commercial banks" figures reflect principally the admission to membership in the Federal Reserve System of one large bank with total loans investments aggregating million dollars on Dec., 9. Beginning 0, 9, includes Bank of North Dakota, a nonmember bank not previously included in these statistics; on Dec., 9, : its deposits, excluding interbank deposits, were million dollars its loans investments million. Back figures. Sez^Banking Monetary Statistics, Tables -, pp. -; for description, see pp. - in the same publication. JANUARY 9

54 ALL BANKS IN THE UNITED STATES, BY CLASSES * Continued LOANS, INVESTMENTS, DEPOSITS, AND NUMBER OF BANKS [Amounts in millions of dollars] Loans investments Deposits Class of bank call date Loans Investments U. S. Government obligations TotaP securities Interbank Dem Time Number of banks All nonmember commercial banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 0 Dec. 9 0 Dec Insured nonmember commercial banks: 98 Dec Dec Dec. 9 Dec. 9 Dec Dec. 9 0 Dec Noninsured nonmember commercial banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. * 9 0 Dec. 9 0 Dec All mutual savings banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 0 Dec. 9 0 Dec Insured mutual savings banks: 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 j une 0 Dec. 9 0 Dec Noninsured mutual savings banks: 98 Dec Dec Dec. 9 Dec. 9 Dec Dec. 9 0 Dec ,98,,9,08 8, 9,8 0,8,,9,09,,8,9,,98 8, 9,8 0,0,8,90,,8,,,,,88, 9,8, 0, 0,8 0,8 0,9 0,,8,8,9,9, 9,9,,9,00,0, 8,89 9, 0,0 9,90 8,889 8,9 8,8 8,9 8,,,8,08,0,,8,,9,,80,8,,9,08,8,90,0,,88,0,,8.8, ,89,9,,90,98,8,8,,0,0 0 0,0,0,,0,089,,,,,98,8,,0,0,8,,,,,00, 8,0 9,,00,00,8,,,,,,0, 9, 0, ,09,,,8,8,,9,89,,08,,8 8, 9,0 0,8,08,00,,9,,8,,9,,8,,,8,9,9,8,8,8,88,9,9,,89,8,8 8,0 9,880 0,89,8,8,0,09,,,9, 8,9 9,0 9 9,0,,8,8,88,0,,00,9,90,090,0 8,8 9, ,,8,,09,8,0,80,,0,98,0,,,89,0,9,,89,,,,,8,,,0,09,,0, ,8,90,0,,89,,9,,, ,0,88,9,, ,8 8, 8,8 9,9 0,8.0,,89.8 8,,09,9,0,0 9, 0,,8,880,809,880,9,,8,8,9,9,89,989,8, 0,8 0, 0,8 0, 0,,,8,,,,0,09,88,89,08,9, 8, 8,90 9, 9, 9, 8,80 8, 8, 8,0,0,,, ,8,0,89,0,8,88 9, 0,00,80, 00,,0,,98,89,80 8, 9,98 0,0 8,008,8, 89,0,,.88,8,9,9,8,0,,89,09,,9,,00,,,8,09,89,8,,, ,8 0, 0,8 0, 0,,,8,,,,0,09,88,89,08,9, 8, 8,90 9, 9, 9, 8,80 8, 8, 8,0,0,,, 8, 8,,88,,0,,,9,8,,9,9,80,,98,,9,, For footnotes see page. FEDERAL RESERVE BULLETIN

55 ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES, BY CLASSES* LOANS AND INVESTMENTS [In millions of dollars] Loans Investments Class of bank call date loans investments Commercial, ineluding openmarket paper Agricultural Loans for purchasing or carrying securities To others To brokers dealers Realestate loans Consumer loans loans U. S. Government obligations Bills Direct Notes Bonds Certificates of indebtedness Guaranteed Obligations of States political subdivisions securities All insured commercial banks: 98 Dec Dec... 9 Dec... 9 Dec... 9 Dec Dec Member banks, total: 98 Dec Dec... 9 Dec... 9 Dec... 9 Dec Dec Mar New York City: 98 Dec Dec... 9 Dec... 9 Dec... 9 Dec Dec Mar Chicago: 98 Dec Dec... 9 Dec... 9 Dec... 9 Dec... 9_j un e0.. Dec Mar Re serve cilybanks: 98 Dec Dec... 9 Dec... 9 Dec... 9 Dec Dec Mar Country banks: 98 Dec Dec... 9 Dec... 9 Dec... 9 Dec Dec Mar Insured nonmember commercial banks: 98 Dec Dec... 9 Dec... 9 Dec... 9 Dec Dec ,0, 9,88,0 8,0 9,9 0,8,,00,, 9,,8 8,8 9,9 90,, 8, 0,90,89,9 9,,9,00,,,,,0,9,,,,,0,,0, 0,9, 0,9,0,, 0, 0,8,8,9,88,80 8,0 9,,8, 9,,98 9,8 0,0,8,90,0 8,9,8 8,90 8,8 0,9,,,08, 8,0,088,88 8,08 8,,9 0,88,,8,0,,8,9,0,0, ,00,0,8,0,0,9,9,0,0,0,,8,,,,09,890,08,,80,90,80,,8,0,,88,,8,8,90,,8 9,,,,0,90,0,9,0 8,,8,,0, '\O9,9,,80,,,0,0 ^ ,0,89,,9,08,8,0,88,8,,,,08,09,9, L.00 L,8,0, L,0,, L. 8 9,089,0,0,98, ,00 90,,,9, 9 9 9,98,00,9 ^089 ',0 8 8,0,,, ,9,, ,0, , , ,8,8,,,,,,,,8,9,,,0,09 ^ ,0,,,8,0,8,9,8,,,8,9,,08,9,,,0,8,, L.9 L.,,8,0,,9,88,8,888,08 8,,9?,8,8,,0, " ,0, , U ,0 98,0 9, , ' ,9, 8,00,,,0 8,00 88,98 8,8,80,00,,90,0,89,0 8,88,0, 8,8,8,,90 8,,8 8,8,0,8,80,,0,00,8,,80,9,08 8,,8,,8,8,0 9,,9,,8,80, 0,0,0,9,,8,,, 0,0, 9, 0,0,0,0,0 0,0 8,8,08,8 8,0,,8 9,9,,98 0,9,8,9,9,8,0,,,,,9,8,9,,0,0,89,8,88,9,80,0,08,0,,08 9,8,8,0,0,,,9, 9,, 8,009,,0,09,8,0,09,,9, 8,9 9, ,,,08,9,8 8 9,,0,,8,,8, 0, 8 0,8,8,8 9 * ,,80,9,0 ^0 0, ,,8,,00,0 ^8,0,8,98,,09,,0,8 8,08,0, \,9,8,0,98 * i,,09,,,9 '",,8,9,0,8,,9,,,8,8,,89,9,00,09,90 0.0,,,,,0,89,80,, ,,,9,89,8 ^89 /0 ""io 8,0,09,,,,0 9 90,9,, 8,000 9,9,9 0,9 0,, 9.88,80, ,9 8,98, 0,8,9 * These figures do not include data for banks in possessions of the United States therefore differ from those published by the Federal Deposit Insurance Corporation. During 9 three mutual savings banks with total deposits of 8 million dollars became members of the Federal Reserve System. These banks are in eluded in "member banks" but are not included in "all insured commercial banks." Central reserve city banks. JANUARY 9,,9,,0,0,0 8,9 9,90 90,8,0,,809,9,,8,8,80 9,9 0,89,98,89,08,9, 8,0 0,,0 9 8,09,0,9,00,98,,8,9,0,8,0 9 98,0,8,8,0, ,,9, ,09, ,0,08,,,8,9,,8,8,0,090,9,9,8,8,989, ,000,0,00 98,,,,,,0,, ,9,9,,098,9,0,,89,9,90,8,,9,,0,00, ,,0,

56 ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES, BY CLASSES * Continued RESERVES AND LIABILITIES [In millions of dollars] Dem deposits Time deposits Class of bank call date Reserves with Federal Reserve Banks Cash in vault Balances with domestic banks Dem deposits adjusted Interbank deposits Domestic Foreign U. S. Government States politica subdivisions Certified officers' checks, etc. Individuals partnerships, corporations Interbank U. S. Government Postal Savings States political subdivisions Individuals partnerships, corporations Borrowings Capital accounts All insured commercial banks : l 98 Dec.... 8,9 90 Dec...., 9 Dec....,9 9 Dec....,0 9 Dec...., ,8 Dec. 0..., ,80 Member banks, total: 98 Dec.... 8,9 90 Dec...., 9 Dec....,9 9 Dec....,0 9 Dec...., ,8 Dec. 0..., 9 Mar. 0..,0 0...,80 New York City:* 98 Dec Dec Dec Dec.. 9 Dec Dec Mar Chicago: 98 Dec Dec Dec Dec... 9 Dec Dec Mar Reserve city banks: 98 Dec Dec. 9 Dec...' 9 Dec Dec Dec. 0 9 Mar. 0.." 0... Country banks: 98 Dec Dec Dec Dec Dec Dec Mar Insured nonmember commercial banks: 98 Dec. 90 Dec Dec. 9 Dec. 9 D ec# i 9 j une 0 Dec ,0,0,0 88,9,,,,89 88,0, ,,0,00,90,,09 ^8,8,88,,8,0,8,0,8,909,9, 90,,8,0,,,,,08,09,,,,, , 8,0 8,0 9,080 8, 8, 9,8 9,,0,8,,,0,,,, ,90 ^ ^90,0,8,9 ^00 ^8,09,9,00,,,,8,09,9,,,0, ^9, ^98,,,98,80,8 8, 9,9 9,9,90 8,08,9 0,9,,0,,89,08, 9,,8,0 0,,8,8,,0,09,,88,9,,,00,00,0,89,, 9,8,,89 8, 8,0 0^, 0,8,,8 9,,,09,0 9,98 0,8 0,,90,9,09,',9 ^8 8, 8,9,9 9, 9,8 0, 9, 0,00,0,,0 9,8 9, 0,0 9,0 9,90 0,88 0,0,0,8,0,9,09,8,0,9,, 8,0,0 9,090,,09,,9, 0,8,0, ^,09, ,9,08, , ,0, Q g , 8, 9,90 8, 9,,8 90,09,9 9,, 8,09,09, ,9,0,,9,8 8 90,0,00 900, 9,98,, ^,0,,090,9,9,0,9, , ^,,9,98,,,,0,8,98,8,,0,8,0,8,,00, ,,9,8, 09 l!,,8,8,0,8,,,88,, ,0,9,9,0,,0 9,009,,,0,,0, ,,98,, 8,8,,,9,9 9,,0,9,80 0,,0 9,09,,,,8 0!,0,8,,89,9,90,,88,09 00,00,,,0 9,8 [,0 8,90 8, 0*, 0,9,,8 8,00,989,,09 8,0 9,0 8,9,,8,8,98,8,9,8 8, ' i ,009,8,,9 8, 0,0,, 0,8,8,88,,8,8 8,80 0,00, ,0, ,,0,,80,90, 8,08 8,9,09,9,08,9, 8, 9,0 0,9 0,98,,,,9,0,09,, ,,,8,0,,09,989 8,0,,98,88,0,,9,98,8,,9,,8 ^8,90,9,, ,,90,9,08,,0,,9,0,98,909,98,0,,9,,9,0', ,0,0,0 Beginning 0, 9, excludes reciprocal bank balances, which on Dec., 9, aggregated million dollars at all member banks million at all insured commercial banks. «Dem deposits other than interbank U. S. Government less cash items reported as in process of collection. For other footnotes, see opposite page. Backfigures. SeeBanking Monetary Statistics, Table 8-, pp FEDERAL RESERVE BULLETIN;

57 WEEKLY REPORTING MEMBER BANKS NEW YORK CITY AND OUTSIDE LOANS AND INVESTMENTS [Monthly data are averages of Wednesday figures. In millions of dollars! Loans Investments Date or month loans investments Commercial, industrial, agricultural For purchasing or carrying securities To brokers dealers U. S. Govt. obligations securities To others U. S. Govt. obligations cunties Realestate loans Loans to banks loans U. S. Government obligations Bills Notes Bonds Certificates of indebtedness Guaranteed Tot I 0 Cities 9 November.. 9 August... September. October November.. Oct. Oct. 0 Oct. Oct..... Oct..... Nov.... Nov. Nov. Nov Dec.... Dec. Dec. 9 Dec. New York City 9 November.. 9 August.... September. October November.. Oct. Oct Oct..... Oct. Oct..... Nov. Nov.... Nov. Nov Dec..... Dec. Dec. 9 Dec.....,8,9,09,0, 0,988,,00 0,88,0,00 0,9,0,,0,8,0 8,0 8,0, 9,88,,,9,8,,8,,,,,8,08,8,,8,9,9,8,,0,,8,0,8,9,,9,0,,0,0,,,9,9,89,,089,0,9.,,,8,0,09,,8,,0,9,,,90,88,8,9,9,09,,9,8,,,,8,80,8,,8,9,8,,8,,,9,9,,9,,0,,9,,,8,8,,0,9,8,88,09,8,00,9,,8,,9,90,0,8,9,,,,,,89,9 88,,,,0,,,0 9,0 9,0,,0,9,,, ,,9,90,00,0,, ,,8,9,89,9 00, ,0,,0, ,00,0,0,00,0,08,0,0,0,0,00,00,0,00,0,09,08, ,0, 9,89,8 0,,8, 9,,, 9,00,,00 8,0,,8 8,,,8 8,,,88 8,90,08, 8,,,0 8,8,8,9 8,,, 8,0,, 8,0,,8 8,8,0,9 8,9,0,0,88 8,,8,08 8,8,,0 8,8,90,90 8, 8,, ,908,9,9,08,9,00,0,,9,,0,8,98,98,0,9,00,,98,90,9,9,8,88,8,,08,8,9,,9,88,,8,9,8, 0,, 9,,9,,9,8,00,0,8,,0,,0, 9,,0,9,9,8,8,, ,0 0,80 0,8 9,8 9,98 9,80 9,80 9,8-9,90 9,8 9, 9, 9,889 9,8,,09,88,8,9,0,0,,0,8,9,, 9,,0 9,0,0 9,0,8 9,9, 9,09, 9,80,80 9,,8 9,9,90 '9, ',08 9,8 M 9,9,9 9,0, 9,0,9 8,9,9 9,0 9, 9,08 9,0,9,,,09,98,,,9,9,9,0,0,,9,8,9,9,90,88,,,,98,8 9,0 9, 8,8 8,80 8,9 8, 8, 8, 8,8 8,8 8,88 8,90 8,9 9,08 9,9 9,9 9, 9, Outside New York City 9 November.. 9 August... September. October November.. Oct..... Oct. 0 Oct..... Oct. Oct..... Nov.... Nov..... Nov. Nov Dec. Dec..... Dec. 9 Dec.....,880,09 0, 0, 9,0 0,0 9,8 9, 9, 9,9 9,9 9,8 0,0 0, 0,0,,0,0,9,0,9,8.,0,,,80,,8,9,0 0,8,,,9,8 8, 8,9 9,00 8,,8,80,8,8,,0,,,,,00, , ,,,, ,00,00,00,009,0,0,0, ,0,0,08,,0,00,00,8,0,80 0,90,08, 0,9,,8 0,8,0,8 0,,0, 0,,08, 0,,08, 0,,09, 0,,, 0,0,,9 0,0,,80 0,,,8 0,,0,8,0,,,90,,00,8,,9,90,,, ,,0.,,880,,,,0,08,0,09,09.090,0,98,0,0,09,90 8,8 8,08 8,00,0,8,8,,8,,0,8,8,,,,,,0,089,8,,,8,9,09,9,,89,08,08,0 ',,,,,,,00,,0, ' Revised. Back figures. See Banking Monetary Statistics, pp. -. JANUARY 9

58 WEEKLY REPORTING MEMBER BANKS NEW YORK CITY AND OUTSIDE Continued RESERVES AND LIABILITIES [Monthly data are averages of Wednesday figures. In millions of dollars] Dem deposits, except interbank Time deposits, except interbank Interbank deposits Date or month Reserves with Federal Reserve Banks Cash in vault Balances with domestic banks Dem deposits adjusted Individuals, partnerships, corporations States political subdivisions Certified officers' checks etc. U. S. Government Individuals, partnerships, corporations States political subdivisions Domestic banks Time U. S. Government Postal Savings Dem Foreign banks Bor- row- Capital 0 Cities 9 November... 9 August... September.. October November.., Oct. Oct Oct..... Oct..... Oct. Nov. Nov..... Nov..... Nov Dec..... Dec. Dec Dec. New York City 9 November... 9 August September. October November. Oct. Oct Oct. Oct..... Oct. Nov..... Nov..... Nov..... Nov. 8 Dec..... Dec..... Dec Dec..... Outside New York City 9 November... 9 August September. October November.. Oct.... Oct Oct.... Oct.... Oct.... Nov.... Nov.... Nov.... Nov Dec.... Dec.... Dec Dec.... 9,8 9,09 9,900 0,9 0,0 0,9 0,9 0,0 0, 0, 0, 0,89 0, 0,0 0, 0,8 0,0 0, 0,,,8,90,,,809,9,0,8,8,9,0,8,9,9,9,,,9,00,8,0,8,0,8,,0,,0,,8,,,8,9,80,0, ,0,8,,,0,, ,,,,8,0,, ,0,0 0 8, 0,8,9,0,, 80,,00,90 8,8,9, [8,8 9, 9, 8,90 9,08 [9, [9, 9,9 9,9 9,0 9,80 0,,,8,9,,9,8,,98,,,8,9,8,80,0,,,90,9,9,,,,9,8,8,0,0,00,0,8,8,9,9,898,9,0,9,98,9,9,9 8, [,8, 8,89 9,8 [0,0 8, 9,9 9,89 9,8 9, 9,8 0, 0,00 0,0,,0 8,0,,,,0,,98,,,9,0,09,0,9,0,90,8,90,98,08,9,9,0,0,,0,88,0,,80,8,80,,9,80,9,,0,0,,9,8,8,88,98,.9,98,88,,,09,09,09,8,98,89,, ,8,,0,,,8,,,,8,8,8,8,8,90,9,0,8,8 8,0 8,009,,8,08,0 980,8,8,090,09.8,,9,, ,0,,88 0,0 8, 8,8 9,0 8,9 8,0 8,0 8,098,,88 8, 8,,98,,9,00,00,00,80,00,0,0,,8,,9,,0,,,09,9,,,8, 8,9,8,09,0,,9,,,8,9,88,89,0, 9,89 0,8 9,9 9,9, 8,0 8, 8,98 9,08 9,8 9,008 9,0 9,0 9,8 9,8 9,8 9, 9,9 9,88 9, ,00,0,9,08,00,0,0,08,09,098,00,09,0,0,09,09,08,089,,0,,89 8,00 8,08,9,98 8,0 8,0 8,00 8,0 8,08 8,09 8,09 8,09,09, ,09 9,80 9, 9, 9,9 0,9 9,9 9,80 0,8 9,88 9,9 0, 0,8 0,9 0, 0,8 0,8 0,8 0,,9,0,,9,0,8,000,98,,0,0,09,,0,,,,8,,,0,9,800,890,8,9,8,0,8,909,,,,,9,00,, ,08,0,08,0,,08,C,0,,,9,09,0,,,,, ,009, ,00,00,00,08, ,,800,8 [,8,90,9,89,90,900,9,90,9,98,9,,9,9,98,9,8,8,8,89,88,89,89,88,88,88,89,89,89,89,89,90,90,90,89,,9,9,,0,08,0,09,08,08,08,0,0,09,0,0,0,0,0 Dem deposits other than interbank U. S. Government, less cash items reported as in process of collection. Monthly weekly totals of debits to dem deposit accounts except interbank U. S. Government accounts. FEDERAL RESERVE BULLETIN

59 WEEKLY REPORTING MEMBER BANKS BY FEDERAL RESERVE DISTRICTS LOANS AND INVESTMENTS [In millions of dollars] Loans Investments Federal Reserve district date loans investments Commercial, industrial, agricultural For purchasing or carrying securities To brokers dealers U. S. Govt. obligations securities To others U. S. Govt. obligations securities Realestate loans Loans to banks U. S. Government obligations Bills Otheloans Certificates of in- Notes debt- ed- ness Bonds Guaranteed securities Boston Nov. 8 Dec. Dec. Dec. 9 Dec. New York* Nov. 8 Dec. Dec. Dec. 9 Dec. Philadelphia Nov. 8 Dec. Dec. Dec. 9 Dec. Clevel Nov. 8 Dec. Dec. Dec. 9 Dec. Richmond Nov. 8 Dec. Dec. Dec. 9 Dec. Atlanta Nov. 8 Dec. Dec. Dec. 9 Dec. Chicago* Nov. 8 Dec. Dec. Dec. 9 Dec. St. Louis Nov. 8 Dec. Dec. Dec. 9 Dec. Minneapolis Nov. 8 Dec. Dec. Dec. 9 Dec. Kansas City Nov. 8 Dec. Dec. Dec. 9 Dec. Dallas Nov. 8 Dec. Dec. Dec. 9 Dec. an Francisco Nov. 8 Dec. Dec. Dec. 9 Dec. City of Chicago* Nov. 8 Dec. Dec. Dec. 9 Dec. ^,,,,8,,8,0,,,09,0,8:,89,80,8,9,,8,,,08',8,,,,0,98,,0,0 8,9 9,8 0,0 9,8 9,9,0:,0,0,0,8,8,,9,90,89,,,8,0,9,09,9,98,9,8,9,089,8,, ,,98,9,0, 9 98,0,09, '.,800,880,9, ' 0 ' 9 9,,,,,,09,,,,0 8 9,9,89,9,, ,0, ,0,,,, ,,0,9, ,0,0 8 9,0,90 0 8,, 0 8,9, 8,8, ,,,9,9,00,9,8,0,88,90,,9,,,9,,80,88,8,8,,8,,,0, 8,0 8, 8,08 8,09,0,,,0,9,0,0,,,,9,00,0,0,08,,98,,9,,,9,0,8,0,8,8,8,90,,0.0,8,,,9,08,0,08,08,8,9,9,90,9,,0,,,8,,8,,0,,80,9,9,9,,,8,,, 9,00,0,0,0,80,8,898,98,9,9,,,,,,0,,,80,88,9,90,, ,0,,9,9, ,8,0,,0, ,,9,8,,,,0,,0,8,,,,8, ,0,,,0, ,,,,, 0 0,0,,,,8 0, 0, 0, 0, 0,80 * Separate figures for New York City are shown in the immediately preceding table, for the city of Chicago in this table. The figures for the New York Chicago Districts, as shown in this table, include New York City Chicago, respectively. i,9,,,,,,,9,00,08,09,0,0,0, ,8,0,8,, ,0,88,8,9,90,88,89,890,89,890 JANUARY 9

60 WEEKLY REPORTING MEMBER BANKS BY FEDERAL RESERVE DISTRICTS Continued RESERVES AND LIABILITIES [In millions of dollars] Dem deposits, except interbank Time deposits, except interbank Interbank deposits Federal Reserve district date Reserves with Federal Reserve Banks Cash in vault Balances with domestic banks Dem deposits adjusted Individuals, partnerships, corporations States political subdivisions Certified officers' checks, etc. U. S. Government Individuals, partnerships, corporations States political subdivisions Domestic banks Ti me U.S. Government Postal Savings Dem Foreign banks Borrowings Capital accounts Bank debits Boston ( Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. New York (8 Cities)* Nov. 8 Dec. Dec. Dec. 9 Dec. Philadelphia ( Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. Clevel (0 Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. Richmond ( Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. Atlanta (8 Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. Chicago ( Cities)* Nov. 8 Dec. Dec. Dec. 9 Dec. St. Louis ( Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. Minneapolis (8 Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. KansasCity { Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. Dallas (9 Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. SanFrancisco(Cities) Nov. 8 Dec. Dec. Dec. 9 Dec. City of Chicago* Nov. 8 Dec. Dec. Dec. 9 Dec ,8,9,9,890, ,9,8,,0, ,0,0,0, ' j -t ,0,09,0,,0,,8,,0,9,9,80,88,8,8,0,9,,,889.8,8,98, L,8, L,0, L.,,0,9,8,9,,,0,0,0 09 8,8,,88,,90, S l!0,,,,0,.8,! 00 '..,9,00,09,,0,0,09,090,,8,98,80,8,888,88,0,0,09 00,9,,9,,,9,0,9,,,0,,,,,8,,8,, ,,8,,0,9,8 9 8 l!.,,,,, 8 ^ 09!, , ,0,0 9 90,9,,09,, 0,089,,, ,09,8,0, ,00,0,, 0,,, ,,,,, 9 8,09,,,8, ,809,80,8,8, ,90,98,9,9, ] ,8,0,8,8, ,8,80,80,80, ,,9,9,89,9,00,00,00, ,0,09,0,0, , 88,8, 8,0 9,, , 98, ,9,,,88, ,,0,,9,08,00,8,,8,0 * See note on preceding page. Dem deposits other than interbank U. S. Government, less cash items reported as in process of collection. Debits to dem deposit accounts except interbank U. S. Government accounts. 8 FEDERAL RESERVE BULLETIN"

61 COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptances outsting End of month Commercial paper outsting outsting Held by Accepting banks Own bills Bills bought s Imports into United States Exports from United States Based on Dollar exchange Goods stored in or snipped between points in United States Foreign countries 9 August September October November December 9 January February March April August September October November As reported by dealers; includes some finance company paper sold in open market. None held by Federal Reserve Banks except on, 9, when their holdings were $8,000. Less than $00,000. Back figures. See Banking Monetary Statistics, Table, pp. -; for description, see p CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS [Member firms of New York Stock Exchange. Ledger balances in millions of dollars] Debit balances Credit balances ( ) ( ) ( ) ( ) (') ( ) ( ) 8 8( ( ) 00 ( ) 9 0 End of month Customers' debit balances (net) Debit balances in partners' investment trading accounts Debit balances in firm investment trading accounts Cash on h in banks Money borrowed Customers' credit balances Free (net) In partners' investment trading accounts credit balances In firm investment trading accounts In capital accounts (net) 9 December... 9 December December... December December... 9 December... 9 December... 9 December... 9 December... 9 January... February... March April August September.. October November..,,9, ,0 *l,00 e l,00»l,0.0 L.09 L.,,00 L,08,0 L ,08, e 0 c O « e Estimated. Complete reports now collected semiannually; monthly figures for three items estimated on basis of reports from a small number of large firms. Excluding balances with reporting firms () of member firms of New York Stock Exchange other national securities exchanges () of firms' own partners. Includes money borrowed from banks also from other lenders (not including member firms of national securities exchanges). As reported to the New York Stock Exchange. According to these reports, the part of total customers' debit balances represented by balances September" 9. The article describes the ,, _ tinguishes the table from a "statement of financial condition," explains that the last column is not to be taken as representing the actual net capital of the reporting firms. Back figures. See Banking Monetary Statistics, Table, pp. 0-0, for monthly figures prior to 9, Table, p. 0, for data in detail at semiannual dates prior to 9. JANUARY 9 9

62 OPEN-MARKET MONEY RATES IN NEW YORK CITY [Per cent per annuml Year, month, or week 9 average 9 average 9 average 9 December.. 9 January... February.. March April August... September. October... November. December.. Week ending: Dec.... Dec Dec..... Dec..... Dec Prime commercial paper, - to - months % Prime bankers' acceptances, 90 days /l Vie Ae Vie Stock exchange call loan renewals u. s Government security yields - month bills' to - month certificates of indebtedness to - year taxable notes H.8.8 Monthly figures are averages of weekly prevailing rates. The average rate on 90-day stock exchange time loans was. per cent during the entire period. Rate on new issues offered within period. From Sept. to Dec., 9, included Treasury notes of Sept., 98 Treasury bonds of Dec., 90; beginning Dec.. 9, includes only Treasury bonds of Dec., 90. Number of issues increased from to on Dec. 0. Back figures. See Banking Monetary Statistics, Tables 0- pp. 8-9, the BULLETIN for 9, pp COMMERCIAL LOAN RATES AVERAGES OF RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES [Per cent per annum] 9 average average 90 9 a 9 a- 9 a 9 a 9 r erage. 'erage. erage. r erage. erage. erage. erage. 9 September.... December 9 March September.... December 9 March September.... December 9 March September... December 9 March September.... December 9 cities New York City I" Northern Eastern cities Southern Western cities Prior to March figures were reported monthly on a basis not strictly comparable with the current quarterly series. Back figures. See Banking Monetary Statistics, Tables -, pp. -; for description, see pp. -. BOND YIELDS [Per cent per annum] U. S. Government Corporate (Moody's) Year, month, or week to 9 years years over Taxable Partially tax exempt Taxable Municipal (highgrade) Corporate (highgrade) Aaa Aa By ratings A Baa By groups Industrial Railroad Public utility Number of issues average average... 9 average C December January... February. March.... April August... September. October... November. December ' ^ Week ending: Dec.... Dec Dec.... Dec.... Dec H c Corrected. r Revised. Monthly weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures. Stard Poor's Corporation. U. S. Treasury Department. Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa, Aa, A groups have been reduced from 0 to,, 9 issues, respectively, the railroad Aaa, Aa, A groups from 0 to,, 9 issues, respectively. Beginning Dec., 9, includes Treasury bonds of 9-, 9-, December 9-, March Number of issues increased from 8 to 9 on Dec. 0. No partially tax-exempt bonds due or callable in years over. Backfigures. -SeeBanking Monetary Statistics, Tables 8-9, pp. 8-, the BULLETIN for 9, pp FEDERAL RESERVE BULLETIN

63 SECURITY MARKETS Bond prices Stock prices Year, month, or week U. S. Government Municipal (highgrade) Corporate Medium- lower-grade Public utility Highgrade Industrial Railroad Defaulted Preferred e Common (index, 9-9=00) Industrial Railroad Public utility Volume of trading (in thouss of shares) Number of issues 9 average 9 average 9 average 9 December 9 January February March April August September October November December Week ending: Dec. Dec. 8 Dec. Dec. Dec ' O ' ' ,0 9,,,,,9,,,88 9,0,0,,9,.8,9,,,9 r Revised. Monthly weekly data are averages of daily figures, except for municipal bonds for stocks, which are based on Wednesday figures. Average of taxable bonds due or callable in years over. Prices derived from average yields, as computed by Stard Poor's Corporation, on basis of a percent 0-year bond. Prices derived from averages of median yields, as computed by Stard Poor's Corporation. Stard Poor's Corporation. Prices derived from averages of median yields on noncallable high-grade stocks on basis of a $ annual dividend. Average daily volume of trading in stocks on the New York Stock Exchange. 8 Number of issues increased from 8 to 9 on Dec. 0. Back figures. See Banking Monetary Statistics, Tables 0,,,, pp., 9, 8, 8, respectively, the BULLETIN for 9, pp NEW SECURITY ISSUES [In millions of dollars] For new capital For refunding Year or month (new refunding) (domestic foreign) Domestic State municipal Federal agencies Corporat e Bonds notes Stocks Foreign (domestic foreign) Domestic State municipal Federal agencies Corporate Bonds notes Stocks Foreign November. December.,,,9,9,8,80,,, 80 9,,9,8,0,89,9,8, ,',09,9, , ,9, 8 8, !,,089,,8,9 09,,0 0 ^,80,0,,8,89 09,, , ,8,'8,09., 0, 8 8,,8,8 8,,9 8,0 0 0, January.. February. 0 March.... April 8 8,9 August... 0 September. 80 October...,8 November "" Y "" Y ' " "* """ , , ' is ' " ' ' Includes publicly offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury. Includes issues of noncontiguous U. S. Territories Possessions. Source. For domestic issues, Commercial Financial Chronicle; for foreign issues, U. S. Department of Commerce, subject to revision. Back figures. See Banking Monetary Statistics, Table, p. 8. Monthly figures JANUARY 9

64 NEW CORPORATE SECURITY ISSUES PROPOSED USES OF PROCEEDS, ALL ISSUERS [In millions of dollars] Proposed uses of net proceeds Year or month Estimated gross proceeds Estimated net proceeds New money Plant equipment Working capital Retirement of securities Bonds ' notes Preferred stock Repayment of other debt purposes August September October November December 9 January February March April.. August September October November 9,,,0,,,,,0,0, ,0 8,,,9,0,,,,0,, , ,8,8,00,0,9,8,8 9 9, ,9, 9,9,,,8, PROPOSED USES OF PROCEEDS, BY MAJOR GROUPS OF ISSUERS [In millions of dollars] Railroad Public utility Industrial Year or month New money net proceeds Retirement of securities All other purposes New money net proceeds Retirement of securities All other purposes New money net proceeds Retirement of securities All other purposes New money net proceeds Retirement of securities All other pur-. poses August September.. October November.. December 9 January... February... March April.... August September.. October November ,0,98,08,,80,0 9, ,90,89 9, 9 9, " ",80, , j' ' to- * Estimates of new issues sold for cash in the United States. Current figures subject to revision. Gross proceeds are derived by multiplying principal amounts or number of units by offering price. Estimated net proceeds are equal to estimated gross proceeds less cost of flotation, i.e., compensation to underwriters, agents, etc., expenses. Includes repayment of other debt other purposes. Source. Securities Exchange Commission; for compilation of back figures, see Banking Monetary Statistics (Table 8, p. 9), a publication of the Board of Governors. FEDERAL RESERVE BULLETIN

65 QUARTERLY EARNINGS AND DIVIDENDS OF LARGE CORPORATIONS INDUSTRIAL CORPORATIONS [In millions of dollars] Net profits, by industrial groups Profits dividends Year or quarter Iron steel Machinery Automobiles transportation equipment Nonferrous metals products durable goods Foods, beverages, tobacco Oil producing refining Industrial chemicals nondurable goods Net profits Dividends Miscellaneous services Preferred Common Number of companies Quarterly 9_ 9 9 i 9 i.. 9 i 9,,88,,9,800, * ,08, PUBLIC UTILITY CORPORATIONS [In millions of dollars] Railroad* Electric power Telephone Year or quarter Operating revenue Income before income taxi Net income Dividends Operating revenue Income before income taxi Net income Dividends Operating revenue Income before income tax Net income Dividends i 9 9 i 9 i 9 i Quarterly,,9,, 9,0 9,,,,8,,8,9,0,9,09,,8,0,,,,,,, 9,8,, ,,9,09,,, ( 8 ) ( 8 ) ( 8 ) ( 8 ) ,0,9,,,, "Net profits" "net income" refer to income after all charges taxes before dividends. Partly estimated. Revised net profits figures for the first six months of 9, published by General Motors Corp., have been allocated by quarters as follows: st, 9 million dollars; nd, million. * Class I line-haul railroads, covering about 9 percent of all railroad operations. Class A B electric utilities, covering about 9 per cent of all electric power operations. Figures include affiliated nonelectric operations. Thirty large companies, covering about 8 per cent of all telephone operations. Series excludes American Telephone Telegraph Company, the greater part of whose income consists of dividends received on stock holdings in the 0 companies. After all charges taxes except Federal income excess profits taxes. 8 Not available. Sources. Interstate Commerce Commission for railroads; Federal Power Commission for electric utilities (nonelectric operations quarterly figures prior to 9 are partly estimated); Federal Communications Commission for telephone companies (except dividends); published reports for industrial companies for telephone dividends. Figures for the current preceding year subject to revision, especially for war producers whose contracts are under renegotiation. For description of data back figures, see pp. - of the March 9 BULLETIN. JANUARY 9

66 UNITED STATES GOVERNMENT DEBT VOLUME AND KIND OF SECURITIES [On basis of daily statements of United States Treasury. In millions of dollars] End of month gross direct debt interestbearing direct debt Marketable public issues Treasury bills Treasury notes Treasury bonds Nonmarketable public issues * U. S. savings bonds Treasury tax savings notes Special issues Certificates of indebtedness Fully Non- guaranteed ininterestbearinterestbearing debt securities 9... Dec. 9 Dec. 9 Dec. 9 Jan Feb Mar. Apr Aug Sept Oct. Nov Dec, 08,0,9,8 0,00 0,0,08,0,90,09 8,8 8,8,0,00,00,8, 8,,98 0,08,80,08, 8,89 0,,8,0,0,, 9,8 0, 9,0 9,9,89,9 0,,88 9,0,0 0,0,8,,9,,80, 8,9 8,080 8, 8,8 8,90 8, 98,8,08,,8,0,,8,0,,9,0,09,0,0,08,08,0,0,0,09 0,,,8 8,8 0,0 0,0 0,9,,8,,,,0,0,0,0 8,,89 9,8 9,8,,0,09,09,09 8,88 8,88 8,88,9,98,98,98,98,98,9 8,08 9,8,0,9 9, 9,8 9, 9,9 9, 9, 9, 0,8 0,890 08, 0,09 0,09 09, 0,,0,88 9,00,,8 0,9,,,8,0,,,,9,8,0,08,9 0,88,00,,,0 0,,0,98,9,,,8,08,,,8, 8,8,0,8,9 8,8 9, 9,8 9,8 9,9 8,98 9,09 0,0 0, 0,9 0,8 9,0 8, 9,08 8,,88 9,0 0,8,0,8,,88,0,,9 8,9 8,8 9,8 0,0 0,9 0, 0,0 0,000 8,,0,0,9,,8,9,00,0,,,,9,8,9,,8,8,09,,,0,9,,9,, 09 8 Including amounts held by Government agencies trust funds, which aggregated,098 million dollars on Nov. 0, 9. marketable public issues includes Postal Savings prewar bonds, total nonmarketable public issues includes adjusted service depositary bonds not shown separately. Including prepayments amounting to 9 million dollars on securities dated, 9, sold in the Seventh War Loan, beginning on, 9. Including prepayments amounting to million dollars on securities dated Nov., 9 Dec., 9, sold in the Victory Loan, beginning on Oct. 9, 9. Including prepayments amounting to 9 million dollars on securities dated Dec., 9, sold in the Victory Loan, beginning on Oct. 9, 9. Back figures. See Banking Monetary Statistics, Tables -8, pp UNITED STATES GOVERNMENT MARKETABLE PUBLIC SECURITIES OUTSTANDING, DECEMBER, 9 [On basis of daily statements of United States Treasury. In millions of dollars] Issue coupon rate Treas ury bills Jan., 9 Jan. 0, 9... Jan., 9... Jan., 9... Jan., 9... Feb., 9 Feb., 9... Feb., 9. Feb. 8, 9... Mar., 9... Mar., 9... Mar., 9 Mar. 8, 9 Cert. Feb. Mar. Apr. Aug. Sept. Oct. Nov. Dec. of indebtedness, 9, 9, y8, 9..., 9..., 9, 9..., 9..., 9.. v% y% y%, 9... y% Treasury bonds Mar., 9-.. X, , 9-9. Oct., 9-. Dec. 9 Mar.,' '.'. '. Mar., H, IX Sept., 98 Dec., '.'./. Amount,0,,0,0,8, ^,0 0 t]0, '"" *,0,,8,9,,0 ',,0, ', Treasury notes Jan., , Mar., 9... i,9, ,90 Dec., K, Mar., 9... V\,98 Sept., 9... '. \\ l A,0 Sept., 9...,8 Sept., 98 '.'.iy, ,,,0 Issue coupon rate Treasury bonds Cont., -. Sept., -. Dec., Dec, -. y% Dec., -. '.'.y Mar., Sept., 90-..'.' i k Sept., '. Dec., 90...', 9-. / Sept., Sept., 9-. Dec., 9-. l / Dec, 9-. '.'... Mar., 9-...K, 9-., 9-...% Dec., 9-., 9-., 9-. y$ Mar., 9-0. Mar., 9-8. '.'.% Sept., 9-9. Sept., 9-9., 98-!, -. '.'.YA Dec., -...% Dec., H, 9-...% Dec., H, Y Dec, V Mar., 9-0. Mar., 9-. y, 9-. '.'.% Sept., 9-...K Dec, 9-. l / Postal Savings bonds..% Conversion bonds Panama Canal loan.. direct iss,ues... Guaranteed securities Federal Housing Admin. Various Amount,0,9,098 9,8,9 8 ^ \,'98 8 '0,0,8,0 8, 8, ', 9 98,8,8,98,8,8,8,,88,9,8,9, 0, ,8 Sold on discount basis. See table on Open-Market Money Rates, p. 0. Called for redemption on Mar., 9. Month Aug.... Sept... Oct.... Nov... Dec... 9 Jan.... Feb.... Mar... Apr Aug.... Sept... Oct.... Nov... Dec... UNITED STATES SAVINGS BONDS [In millions of dollars] Amount outsting at end of month,98,0,8,88,, 8,08 0,,0,98,9,,,8,08,,,8, 8.8 Funds received from sale during All series,8, 0 9 9,0,8, ,0,8,9 00,8, Series E,0,8 9 80,8 80 8,9,8, Series F Series G Maturities amounts outsting, December, 9 Year of maturity Unclassified.. All series ,8, , 0,8,,0-8,8 Series B-D , Series E,0,908, 9,8, i0, Series F 88 80,9 for October revised to 9,88 million dollars. Redemptions maturities All series Series G,9,0,,9,,8 FEDERAL RESERVE BULLETIN

67 OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED [In millions of dollars] End of month interestbearing securities Held by U. S. Government agencies trust funds Special issues Public issues Held by Federal Reserve Banks Commercial banks Privately held Mutual savings banks Investors Insurance companies Marketable issues Nonmarketable issues 9 December 9 December 9 December 9 February March April.... August September October,9 9 8, , 9,9 0,, 0 9,980,88 9,0 0 8,0 8, 0, 9 8, ,8 0, ,,8,8, 80,8,0, 8,0,,,,89,0, 90 8, ,9 9,0 8, 9 9, 98 0, , ,9,0, 8 9,8 8,8 8 00,00 00, ,00 8, ,00,89,9 90, ,8 8,00 8, , ,800 0, ,000 9,00,00,00,00,00 9,00 0,00 0,00 0,00 0,00,00,00,00,00,00 0,00,800 8,00,00 0,00 r 00,00,000,00,00 9,00 0,00 0,00 0,000 9,00,000,00 8,00,00,00 9,00 0,00 0,00 0,00,00,00,000,00,00,000 Figures for insurance companies other investors have been rounded to nearest 00 million dollars for all dates, figures for commercia ial banks mutual savir ' ings banks have been rounded to nearest 00 million for all dates except December for which call report data are available. Back figures. See Banking Monetary Statistics, Table 9, p.. SUMMARY DATA FROM TREASURY SURVEY OF OWNERSHIP OF SECURITIES ISSUED OR GUARANTEED BY THE UNITED STATES * [Public marketable securities. Par values in millions of dollars] End of month outsting U.S. Government agencies trust funds Federal Reserve Banks Commercial banks 0) Mutual savings banks Insurance companies End of month outsting U.S. Government agencies trust funds Federal Reserve Banks Commercial banks Mutual savings banks Insurance companies : 9 Dec 9 Aug Sept Oct Treasury bills: 9 Dec 9 Aug Sept Oct Certificates: 9 Dec 9 Aug Sept Oct Treasury notes: 9 Dec 9 Aug Sept Oct Guaranteed securities: 9 Dec 9 Aug Sept Oct,9,8, 8, 8, 8,9 8,80 8,89,,8,09,0,0,08,08,0 8,8 0,0,,,,0,0,0,0,09 8,88,9,98,98,98,98,0,90, 8,8,0 0,9,89, 9,8,08 8,09,09, 0,8,09, 8,,,, 8,8,8,9,9 9,80, 8,, ,8,88,80,0,09,00,8,0,80,,0,8,98,,9,90,89,,,98,,9,0,98,0,0,0,89,8,,09,0,8,,88,0,,08,80, ,8 8,8 8,9 9,8 9, 9, 9,8 9, ,,9 8, 9,0 9,, 0,90,,,,,8,,,0, ,9,0,,,,,80 9 9,8 0 9,9 88 9, , 0,98 0, 9 0,98 0,,8,098,9,8,9,9,8, Treasury bonds: : 9 Dec 9 Aug Sept Oct Maturing within years: 9 Dec 9 Aug Sept Oct Maturing in -0 years: 9 Dec 9 Aug Sept Oct Maturing in 0-0 years: 9 Dec 9 Aug Sept Oct Maturing after 0 years: 9 Dec 9 Aug Sept Oct 9, 9,8 9, 0,8 0,890 08, 0,09 0,09,8,8 8, 8, 8, 8,,,,,08, 8, 8, 8, 9,80 9,80,8,,,,0',,8,8,9,,,,9,0,9,9,,,9,98,9,9,9, ,0,0,,,,9,98,9,09,08 90,0,08, ,9,,90,,0,,,0, 0,90,,8 9,,,08,0,89,098, 9,,,,8,,9 9,0 9,89 8,.,8 9,8 0,09 8,,0 9, 0, 8, 9,8 9,0 0,8,0 9, 9,0 0,,9,9,8,8,0,8,80,, 8,9,,90 9, 9,9 0,09 0,98,,09,,,,,8,88,,,8,9,,8,0,, ,,,,00,8,0,0,90,8,88,88,8,,8,88, ,,0,9,,9,,9,0,9,,9,,,,9,0 0 00,0,09,08,,8,0 0, 8,89 0,009 9, 9, 9,9 9,0,8,,9,9,,,00,880,98,,0 0 09,,0,09,00,9 0,,00,0 0,,, 0,8,, 0,0,, 9,900 * Figures include only holdings by institutions or agencies from which reports are received. Data for commercial banks, mutual savings banks, the residual "other" are not entirely comparable from month to month. Since 9 the coverage by the survey of commercial banks has been exped. Figures in column headed "other" include holdings by nonreporting banks insurance companies as well as by other investors. Estimates of total holdings (including relatively small amounts of nonmarketable issues) by all banks all insurance companies for certain dates are shown in the table above. Including stock sayings banks. On Oct., 9, commercial banks reporting to the Treasury held,0 million dollars of U. S. Government securities due or callable within one year out of a total of, million outsting. Including 9 million dollars of Postal Savings prewar bonds not shown separately below. JANUARY 9

68 SUMMARY OF TREASURY RECEIPTS, EXPENDITURES, AND RELATED ITEMS On basis of daily statements of United States Treasury. In millions of dollars] Period Income taxes l Withheld Miscellaneous internal nue x Social Securitv taxes re- re- Net receipts Interest on debt War activities Transfers to trust accounts, etc. expenditures budget expenditures Deficit Trust accounts, etc.- Chang in genera fund balance Increase in gross debt Fiscal year ending: , ,89 9 December.. 9 January.... February... March April August September.. October... November.. December.. 9, ,8 8 9,00 8,0 0,09,,88,0,80,,9,,90,0,0,0 9,9,,9, ,08,, ,0,, ,08,0,8,8.9S,908,9,98,9,,8,9,8,09,,8,9,,.,,89,,08,9,9,,89,0,.8,808,09, , ,09 8,09 90,09,0,,98 8,,9 S.,8,,98,,,,, ,8,0, ,9 9, 00,0 8, 8,0,0 9,,98 9, 9, 8,,,,90,,,89 9,9,98,9,,9,0,00,90,,8,,,0,8, -,8 -, , , ,, + 0,,0 +,9, ,9 -,0 -,9 -, +,0 -, -, -,9 -, +, +,8,8,00,0, 9,80, ,, Detai s of trust accounts, etc. General fund of the Treasury (end of period) Period Social Security accounts Net receipts Investments Expenditures Net expenditures in checking accounts of Government agencies Receipts Investments Expenditures Deposits in Federal Reserve Banks Assets Deposits in special depositaries assets liabilities Balance in general fund Fiscal year ending: December... 9 January February... March April August September.. October November... December...,80,0, ,0,8, ' ,9,0, ,,8, ,, ,9 0,,9, 0,0,,,809 0,0.9,9 9,08,8,0,89,0,08,,00,,08,8,,,0,00,,00,,,,, 8,00, 0,,8,,0 9,9,9, 0,0,8,989,89,9,0 I Details on collection basis given in table below. «Withheld by employers (Current Tax Payment Act of 9). receipts less social security employment taxes, which are appropriated directly to the Federal old-age survivors insurance trust fund. II Excess of receipts (+) or expenditures ( ). Back figures. See Bankirig Monetary Statistics. Tables 0-, pp. -. INTERNAL REVENUE COLLECTIONS [On basis of reports of collections. In millions of dolla rsl Income taxes,,,0,,08,0, Miscellaneous internal revenue ,0 0,9,98, 9,0,,, 9,,98,08 8,,,8,,00 Period Current individual Withheld i Victory tax Back taxes Excess profits taxes profits taxes Current corporation Capital stock tax Estate gift taxes Alcoholic beverage taxes Tobacco taxes Stamp taxes Manufacturers' retailers' excise taxes Miscellaneous taxes Fiscal year ending: November... December... 9 January February... March April August September... October November...,,08,0,,0,0,8,08,0 0,,9,,0,8, 0, 8, , 90 0, 8 8, ' '^08 0,,0 8 90,89 9,,9,,09,0 8 8 i -l,,, ,0 9,,00 8, 0 0,0 9,89 9 8, ,,, "l ,,8, , ,0, * Withheld by employers (Current Tax Payment Act of 9). FEDERAL RESERVE BULLETIN

69 ( ) GOVERNMENT CORPORATIONS AND CREDIT AGENCIES [Based on compilation by United States Treasury Department. In millions or dollars! PRINCIPAL ASSETS AND LIABILITIES Assets, other than interagency items l Liabilities, other than interngency items Corporation or agency All agencies: Dec., 9... Mar , 9... Sept. 0, 9... Classification bv agency, Sept. JO, 9 Department of Agriculture: Farm Credit Administration: Banks for cooperatives Federal intermediate credit banks Federal l banks Production credit corporations... Regional Agricultural Credit Corp Federal Farm Mortgage Corp Rural Electrification Administration War Food Administration Commodity Credit Corp Farm Security Administration Federal Crop Insurance Corp.... Federal Surplus Commodities Corp National Housing Agency: Federal Home Loan Bank Administration: Federal home loan banks Federal Savings Loan Insurance Corp Home Owners' Loan Corp Federal Public Housing Authority affiliate: Federal Public Housing Authority Defense Homes Corp Federal Housing Administration I'Vderal National Mortgage Association K.K.C. Mortgage Company econstruction Finance Corp. Ml'ice of Emergency Management: Smaller War Plants Corp War Shipping Administration Oilier \port-import Bank <ltral Deposit Insurance Corp < tlcral Works Agency ennessee Valley Authority S. Maritime Commission ll..(her,' 9S, 9 0C ,980 8, ,8,00 Cash ,8, 89,, ' 89' ,09 8,9.90,0,8,09 C') () Loans receivable Commodities, supplies, materials Investments u. s. Govt. securities,,,9, C ) securities 88 8,, 0, 0,8,88,80 0 9,, L, structures, equipment Undistributed charges,9,00,9,9,8, ( o Bonds, notes, debentures payable Fully guari an teed I by U.S I 9 C-) 80 9 I CLASSIFICATION OF LOANS BY PURPOSE AND AGENCY., 0 0,9,,, 9 8 liabilities. 9,9., (') ( ),0, ( ) 9 U. S. Government interest,8,0,, ,,8 9 0,,9 Privately owned interest 'urpose of loan To aid agriculture To aid home owners To aid industry: Railroads To aid financial institutions: Banks Less: Reserve for losses. 'f'otal loans receivable (net) Fed. l banks,08,0 Fed. Farm Mort. Corp. 9 Fed. intermediate credit banks Banks for cooperatives Commodity Credit Corp Rural Electrification Adm. 88 (r) 88 Sept Farm Security Adm. 8 Home Owners' Loan Corp Fed. Public Housing Auth. Fed. home loan banks , 0 Reconstruction Finance Corp. affiliates Ex- port- Irnport Bank All other 9 9 All agencies,98 9 8,, , all agencies Assets are shown on a net basis, i.e., after reserves for losses. - Less than $00,000. Includes Agricultural Marketing Act Revolving Fund Emergency Crop Feed Loans. All assets liabilities of the United States Housing Corp. have been liquidated. Includes Defense Plant Corp., Defense Supplies Corp., Metals Reserve Co., Rubber Reserve Co., Disaster Loan Corp., which previously were affiliates but which as of, 9, pursuant to Public Law 09, approved 0, 9, were dissolved merged with the Reconstruction Finance Corp.; also includes War Damage Corp., which continues as affiliate. Includes Petroleum Reserves Corp., Rubber Development Corp., U. S. Commercial Co., Coordinator oi Inr.er-American Affairs. i!n's iable is based on the revised form of the Treasury Statement beginning Sept. 0, 9, which is on a quarterly basis. Quarterly figures!.(i»lt«with monthly figures previously published. Monthly figures on the old reporting basis for the months prior to Sept. 0, 9, may be : i- i su.-s of the BULLETIN (see p. 0 of the November 9 BULLETIN) in Banking Monetary Statistics, Table, p.. JANUARY 9,9,0 0,,

70 BUSINESS INDEXES [The terms "adjusted" "unadjusted" refer to adjustment of monthly figures for seasonal variation! Year month Income payments (value) 9-9 = 00 Industrial production (physical volume)* 9-9=00 Manufactures Durable Nondurable Minerals Construction contracts awarded (value) 9-=00 Residential All other Nonagricultural Employment =00 Factory Factory pay rolls* = 00 Freight carloadings* 9-9 = 00 Department store sales (value) *s Wholesale commodity prices* 9 = 00 Adjusted Adjusted Unadjusted Adjusted Adjusted Ad- justed Adjusted Adjusted Adjusted Adjusted Adjusted Unadjusted Unadjusted Adjusted Adjusted Unadjusted November.. December.. 9 January.... February... March April August September.. October... November.. December.. 9 January.... February... March April August September.. October... November.. December.. 9 January.... February... March April August September.. October... November ' ' ? P ' P ' P P P\ P " '. '. 0.9 P P ' r * Average per working day. P Preliminary. Revised. Department of Commerce series on value of payments to individuals. For indexes by groups or industries, see pp. 9-. For points in total index, by major groups, see p. 8. Based on F. W. Dodge Corporation data; for description, see p. 8 of BULLETIN for 9; by groups, see p. of this BULLETIN. The unadjusted indexes of employment pay rolls, wholesale commodity prices, cost of living are compiled by or based on data of the Bureau of Labor Statistics. Nonagricultural employment covers employees only excludes personnel in the armed forces. For indexes by Federal Reserve districts other department store data, see pp Back figures in BULLETIN. For industrial production, August 90, pp. 8-88, September 9, pp. 9-9, October 9, pp ; for factory employment, January December 9, pp. 8, respectively, October 9, pp. 0-0; for department store sales, 9, pp FEDERAL RESERVE BULLETIN

71 INDUSTRIAL PRODUCTION, BY INDUSTRIES Continued (Adjusted for Seasonal Variation) [Index numbers of the Board of Governors. 9-9 average = 00 Industry Oct. Nov. Dec. Jan. Feb. Mar. Apr. Aug. Sept. Oct. Nov, Industrial Manufactures Production Durable Manufactures Iron Steel Pig iron Steel Open hearth Electric Machinery Manufacturing Arsenals Depots.... Transportation Equipment Automobiles (Aircraft; Railroad cars; Locomotives; Shipbuilding Private Government) Nonferrous Metals Products. Smelting refining (Copper smelting; Lead refining; Zinc smelting; Aluminum; Magnesium; Tin) Fabricating (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin consumption) Lumber Products. Lumber... Furniture.. Stone, Clay, Glass Products. Glass products Plate glass Glass containers Cement Clay products Gypsum plaster products.. Abrasive asbestos products. stone clay products. Nondurable Manufactures. Textiles Products Textile fabrics Cotton consumption Rayon deliveries Nylon silk consumption Wool textiles Carpet wool consumption Apparel wool consumption Woolen worsted yarn Woolen yarn Worsted yarr yarn Woolen worsted cloth Leather Products Leather tanning Cattle hide leathers Calf kip leathers.... Goat kid leathers... Sheep lamb leathers. Shoes Manufactured Food Products.. Wheat flour Cane sugar meltings Manufactured dairy products, Butter Cheese Canned dried milk.., Ice cream Meat packing Pork lard Beef Veal Lamb mutton, P P 8 9 8' 9 9 r Revised. P Preliminary. i Series included in total group indexes but not available for publication separately S P P P P P P » P 8 P '8 ' 8 '9 9 ' H P P P P P0 P v9 P P9 P0 P P P 8 89 JANUARY 9 9

72 INDUSTRIAL PRODUCTION, BY INDUSTRIES Continued {Adjusted for Seasonal Variation) [Index numbers of the Board of Governors. 9-9 average = 00] Industry Oct. 9 Nov. Dec. Jan. Feb. Mar. Apr. 9 Aug. Sept Oct. Nov. Manufactured Food Products- Continued manufactured foods Processed fruits vegetables Confectionery food products Alcoholic Beverages Malt liquor Whiskey distilled spirits Rectified liquors Industrial Alcohol from Beverage Plants Tobacco Products Cigars Cigarettes tobacco products Paper Paper Products Paper pulp Pulp Groundwood pulp Soda pulp Sulphate pulp Sulphite pulp Paper... Paperboard Fine paper Printing paper Tissue absorbent paper Wrapping paper Newsprint Paperboard containers (same as Paperboard) Printing Publishing Newsprint consumption Printing paper (same as shown under Paper) Petroleum Coal Products Petroleum refining Gasoline Fuel oil Lubricating oil Kerosene petroleum products Coke By-product coke Beehive coke Chemical Products Paints Soap Ravon Industrial chemicals Explosives ammunition chemical products Rubber Products Minerals Fuels Metals Coal Bituminous coal Anthracite Crude petroleum Metals other than gold silver Iron ore (Copper; Lead; Zinc) - Gold Silver no' 0 9 > U "" ' ' ' ' ' S HI v " ' HI 9 P ' S "> '' 9 0 ' vl0 M P " " P P " " >>\ /' " "8 P P " f'9 M9 " ' 9 r Revised. p Preliminary. Series included in total group indexes but not available for publication separately. NOTE. Series on petroleum refining, usually published in this table, is in process of revision. For description back figures see BULLETIN for October 9, pp , September 9, pp , August 90, pp FEDERAL RESERVE BULLETIN

73 INDUSTRIAL PRODUCTION, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Board of Governors. 0-9 average = 00] Industry 9 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Aug. Sept. Oct. Nov. Industrial Manufactures Production Durable Manufactures Iron steel Pig iron Steel Open hearth Electric Machinery Manufacturing Arsenals Depots Transportation equipment Automobiles (Aircraft; Railroad cars; Locomotives; Shipbuilding Private Government) Nonferrous Metals Products Smelting refining (Copper smelting, Lead refining, Zinc smelting; Aluminum; Magnesium; Tin) Fabricating (Copper products; Lead shipments; Zinc shipments; Aluminum products; Magnesium products; Tin consumption) Lumber Products.... Lumber.. Furniture. Stone, Clay, Glass Products Glass products Plate glass Glass containers Cement Clay products Gypsum plaster products Abrasive asbestos products stone clay products Nondurable Manufactures Textiles Products Textile fabrics Cotton consumption Rayon deliveries Nylon silk consumption Wool textiles Carpet wool consumption Apparel wool consumption Woolen worsted yarn Woolen yarn Worsted yarn Woolen worsted cloth Leather products. Leather tanning Cattle hide leathers Calf kip leathers.... Goat kid leathers... Sheep lamb leathers. Shoes Manufactured Food Products. Wheat flour Cane sugar meltings Manufactured dairy products. Butter Cheese Canned dried milk... Ice cream Meat packing Pork lard Beef Veal Lamb mutton P P P P i- 9 9 Pi P > ' P P '8 ' 8 '9 '0 9 '8 9 P ' r P ' P P P0 P/ P P P P9- P8 P PO P88 PO P0 P0 P P P P " Revised. " Preliminary. J Series included in total group indexes but not available for publication separately. JANUARY 9 Include^ Petroleum Reserves Corp.,

74 INDUSTRIAL PRODUCTION, BY INDUSTRIES Continued {Without Seasonal Adjustment) [Index numbers of the Board of Governors. 9-9 average = 00] Industry Oct. Nov. Dec 9 Jan. Feb. Mar. Apr. Aug. Sept. Oct. Nov, Manufactured Food Products Continued manufactured foods Processed fruits vegetables. Confectionery food products Alcoholic Beverages. Malt liquor Whiskey distilled spirits. Rectified liquors Industrial Alcohol from Beverage Plants. Tobacco Products Cigars Cigarettes tobacco products. Paper Paper Products. Paper pulp Pulp v Groundwood pulp Soda pulp Sulphate pulp Sulphite pulp Paper Paperboard Fine paper Printing paper Tissue absorbent paper Wrapping paper Newsprint Paperboard containers (same as Paperboard). Printing Publishing. Newsprint consumption Printing paper (same as shown under Paper). Petroleum Coal Products... Petroleum refining Gasoline Fuel oil Lubricating oil, Kerosene petroleum products. Coke By-product coke Beehive coke Chemical Products. Paints Soap Rayon Industrial chemicals Explosives ammunition chemical products... Rubber Products Minerals Fuels Metals.. Coal Bituminous coal... Anthracite Crude petroleum Metals other than gold silver. Iron ore (Copper; Lead; Zinc) Gold Silver P 9 i P P' > > P Preliminary. Series included in total group indexes but not available for publication separately. NOTE. Series on petroleum refining, usually published in this table, is in process of revision. For description back figures, see BULLETIN for October 9, pp , September 9, pp , August 90, pp FEDERAL RESERVE BULLETIN

75 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES (Without Seasonal Adjustment) [Index numbers of the Bureau of Labor Statistics, = 00 Factory employment Factory pay rolls Oct. Nov. Aug. Sept. Oct. Nov. Sept. Oct. Nov. Aug. Sept. Durable goods.... Nondurable goods. Iron Steel Products Blast furnaces, steel works, etc. Steel castings Tin cans other tinware.... Hardware Stoves heating equipment. Steam, hot-water heating apparatus Stamped enameled ware.. Structural ornamental metal work Electrical Machinery Electrical equipment Radios phonographs Machinery, except Electrical Machinery machine shop products Engines turbines Tractors Agricultural, excluding tractors Machine tools Machine-tool accessories Pumps Refrigerators Transportation Equipment, except Autos Aircraft, except aircraft engines Aircraft engines Shipbuilding boatbuilding Automobiles Nonferrous Metals Products Primary smelting refining. Alloying rolling, except aluminum Aluminum manufactures Lumber Timber Basic Products. Sawmills logging camps... Planing plywood mills.... Furniture Lumber Products... Furniture Stone, Clay Glass Products Glass glassware Cement Brick, tile, terra cotta... Pottery related products.. Textile-Mill Fiber Products... Cotton goods except small wares. Silk rayon goods Woolen worsted manufactures Hosiery Dyeing finishing textiles.. Apparel Finished Textiles Men's clothing, n.e.c Shirts, collars, nightwear. Women's clothing, n.e.c, Millinery Leather Leather Products Leather Boots shoes, Food Kindred Products Slaughtering meat packing Flour Baking Confectionery Malt liquors Canning preserving... Tobacco Manufactures.. Cigarettes Cigars.. C ' ' ' '9. '9 8 9 ' '. 8.V '9 08 ' ' '9.0 '0 ' ' 0. ' , , '. ' '.8 ' '8. 9 '89 ' ' '. ' ' 90 9 '0. '0 9 '. '9 '8 ' 90 '80. ' ' 0 0. '. 9 ' '8 ' '. ' 8 ' Revised. NOTE. Indexes for major groups totals have been adjusted to final 9 data made available by the Bureau of Employment Security of the Federal Security Agency. Back data data for industries not here shown are obtainable from the Bureau of Labor Statistics. Underlying figures are for pay roll period ending nearest middle of month cover wage earners only. Figures for November 9 are preliminary. JANUARY 9

76 FACTORY EMPLOYMENT AND PAY ROLLS, BY INDUSTRIES Con tinned {Without Seasonal Adjustment) [Index numbers of the Bureau of Labor Statistics, = 00] Factory employment Factory pay rolls Oct. Nov. Aug. Sept. Oct. Nov. Sept. Oct. Nov. Aug. Sept. Oct. Paper Allied Products Paper pulp Paper goods, n.e.c Paper boxes Printing Publishing Newspaper periodicals Book job Chemical Allied Products Drugs, medicines, insecti cides Rayon allied products... Chemicals, n.e.c Explosives safety fuses.. Ammunition, small-arms Cottonseed oil Fertilizers Products of Petroleum an_d Coal... Petroleum refining Coke by-products Rubber Products Rubber tires inner tubes Rubber goods, other Miscellaneous Industries Instruments, scientific Photographic apparatus ' ' '. 0 ' '.9 '' '. ' 0 9. " ' ' '. ' '9 '9 00 ' '0.8 '0 '8 '. ' 9. ' For footnotes see opposite page. FACTORY EMPLOYMENT (Adjusted for Seasonal Variation) Index numbers of the Board of Governors, = 00) Group Oct. 9 Nov. Dec. Jan. Feb. Mar. Apr. 9 Aug. Sept. Oct. Nov.... Durable Nondurable '. ' '. '8. ' P.9 P. PO9. r Revised. Preliminary. NOTE. Back figures from January may be obtained from the Division of Research Statistics. HOURS AND EARNINGS OF WAGE EARNERS IN MANUFACTURING INDUSTRIES [Compiled by the Bureau of Labor Statistics] Average hours worked per week Average hourly earnings (cents per hour) Industry Sept. Oct Aug. Sept. Oct Sept. Oct Aug. Sept Oct. All Manufacturing Durable Goods Iron Steel Products Electrical Machinery Machinery Except Electrical Transportation Equipment Except Autos Automobiles Nonferrous Metals Products Lumber Timber Basic Products. Furniture Finished Lumber Products Stone, Clay, Glass Products Nondurable Goods Textiles Mill Fiber Products.. Apparel other Finished Products Leather Manufactures Food Kindred Products Tobacco Manufactures Paper Allied Products Printing, Publishing Allied Indus tries Chemicals Allied Products Products of Petroleum Coal... Rubber Products Miscellaneous Industries ' ' ' r.0 '.8 r 0.9 ' '. 0.9 '..8 '.8 0. '. 0.. '. '.8 '. '. ' '0.9 '0.8. '9.. '0. 8. ' '88.0 '. 00. '..9 '9. '98. '0. '08.9 '0..9 ' '8. 9. '90.. ' '8. '89.0 '.0 '. '. '08.9 ' r Revised. NOTE. Back figures are available from the Bureau of Labor Statistics. FEDERAL RESERVE BULLETIN

77 ESTIMATED EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION [Thouss of persons] Year month.ining Manufacturing Construction* Transportation public utilities Trade Finance, service, miscellaneous Federal, State, local government ,,8,8 8, 9,8 8,98 0,08 0,80,9,0,9, ,,,,08,9 9,9,0,8,,9,,8,90.8,,00,0,0,0,8,,,8,988,,,0,890,9 SEASONALLY ADJUSTED 9 August September October November December 9 January February March April August September October November December 9 January February March April August September October November December 9 January February March April August September October November December 9 January February March April August September October November UNADJUSTED 9 August September October November December 9 January February March April August September October November,9,8,,9,,89,,8,0,9,9,,98 8,0 8,8 9,0 9, 9, 9,9 9,898 9,9 9,9 0,0 9,89 9,0 9, 9,8 9, 9, 9,8 9, 9,9 9, 9, 9, 8,8 8,9 8, 8,00 8, 8,00 8,9 8,0 8, 8, 8,9 8,,9,,, ',888 '",,00,0 8, 8,8 8, 8, 8, 8,0 8, 8,889,9,98 8,0,9,9,9,,98 \.,0,0,,0,,,80,,,8.89.0,,,9,8,,,,98,08,,0,8,8,88,8,908.09,09,0,08,,,90,89,,9,0,09,0,9,,,9,,,9,,8,88,,0 ',,0,9,9,,09,0,0,8,9,0,,,,8,0,8,,0 ',8 r,o9,9, ,000,00,00, ,,9,,8,.9,8,,0,090,0,0,08,0.0.0,0,,09,0,8,,0,,8.,,08, ' * ,,,9,0...9,,,,8.0,9,9,,8,8,8.0,,0,,,88,9,0,,9.,,8,8,0.80,80,,8,,,,,8,,89,9,88,8,8,80,9,80,80 ',,,88,8,80,809,88,9,,,0,0,,88,9,80,80,88,80,8,9,88,0,88,9,9,8,,,8,8,,,9,80,0,0,,,,,,,0,0,00,988,0,0,0,00,00,000,9,09,0,0,98,,0,08,09,0,0,0,0,0,,,00,0,09,, ",0,,0,9,9,9,98,,8,,,00,98,08,0,0,00,9,,8,,,0,,,,8,.,9,9,0,9,,,,,0,8,8,0,,9,,,,0,0,.,0,09,08,9,,0,,,,,,0..88,8.9,0,9,0,8,,,,8,9,0,,9,.,8,8,88,0,,0,0,0,9,,,89,,,0,98,8,0,,9,0,,88,,,0,8,89,9,08,,,8,,,0,0,8,89,9,9,9,9,9,9,80,88,8,98,8,889,90,90,90,89,89,898,8,9,9,08,9,8,0,00,9,9,9,9 r,8,,,9,89,80,89,98,9,9,,89,98,,00,00,9,9,9 ',9,0, * Includes Contract Construction Federal Force Account Construction. Revised. NOTE. Unadjusted data compiled by Bureau of Labor Statistics. Estimates include all full- part-time wage salary workers in nonagricultural establishments employed during the pay period ending nearest the ISth of the month. Proprietors, self-employed persons, domestic servants, personnel of the armed forces are excluded. November 9 figures are preliminary. For back seasonally adjusted estimates see BULLETIN for 9, p. 00. Back unajusted data are available from the Bureau of Labor Statistics. r JANUARY 9

78 CONSTRUCTION CONTRACTS AWARDED, BY TYPE OF CONSTRUCTION [Figures for States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars] Month Residential building Factories Nonresidential building Commercial Educational Public works public utilities January February March April ]VIay August September October November December Year , ! Negative because of revision of a prior month's entry. CONSTRUCTION CONTRACTS AWARDED, BY OWNERSHIP [Figures for States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars] CONSTRUCTION CONTRACTS AWARDED, BY DISTRICT [Figures for States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in thouss of dollars] Month Public ownership Private ownership Federal Reserve district Nov. 9 Oct. 9 Nov. January... February... March April August September.. October... November.. December.. Year ,, ,9, LOANS INSURED BY FEDERAL HOUSING ADMINISTRATION [In millions of dollars] Year or month 9 Nov Dec 9 Jan Feb Mar. Apr Aug Sept Oct Nov ,0,8, Title I Loans Property improvement * * * * * * - to - family houses (Title II) Mortgages on Rental group housing (Title II) 8 * * * * * War housing (Title VI) loans, figures mciuue some remsureu mortgages, WHICH are snown in the month in which they were reported by FHA. Reinsured mortgages on rental group housing (Title II) are not necessarily shown in the month in which reinsurance took place. Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas ( districts) 0,09 9,80,,9,,9 88,80,8,,0 0, 0,08,8 8,0 9,8 8,,8,, 9, 9,,9,,,9,90,,,0,8 9,,0 8,0 9,0,9,80 NOTE. Data for most recent month preliminary. INSURED FHA HOME MORTGAGES (TITLE II) HELD IN PORTFOLIO, BY CLASS OF INSTITUTION [In millions of dollars] End of month 9 Dec 9 Dec 98 Dec Dec 90 Mar Sept Dec 9 Mar Sept Dec 9 Mar Dec 9 Dec 9 Dec 9,,8,9,,0,,09,98,,9,0,0,9,0,00,,,, Small home construction Commercial banks ,0,09,,,8,00,,9,,9,00,0,9,90, ,0,0,,9,0,0 Mutual savbanks Savings loan associations Insurance companies Federal agencies !The RFC Mortgage Company, the Federal National Mortgage Association, the Federal Deposit Insurance Corporation, the United States Housing Corporation. ^Including mortgage companies, finance companies, industrial banks, endowed institutions, private State benefit funds, etc. NOTE. Figures represent gross amount of mortgages held, excluding terminated mortgages cases in transit to or being audited at the Federal Housing Administration. FEDERAL RESERVE BULLETIN

79 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Month 9 Merchise exports Merchise imports Excess of exports January February March April August September... October November.... December ,09,00,,80,9,8,0,88,,0,9,,,9,9,9,9, Pl.8 P P90 P88 P,00 Pl,00 P, P80 P89 P? P Jan.-October...,00,09 0,0,,,,80,,8,9,8 8,8 P8, P, P.9 r Revised. P Preliminary. Including both domestic foreign merchise. General imports, including merchise entered for immediate consumption ti : that entered for storage in bonded warehouses, Source. Department of Commerce. Back figures. -See BULLETIN for r April 90, p. ; February 9, p. ; 9, p. ; January 9, p '0 ' 9-8 ' P P P P P P P P0 P P0 P P ,00-8 r , P8 P0 P9 P P P9 P P P P8 P8 P FREIGHT CARLOADINGS, BY CLASSES [Index numbers: 9-9 average=00] REVENUES, EXPENSES, AND INCOME OF CLASS I RAILROADS [In millions of dollars] Coal Coke Grain Ore Livestock Forest products Mis- Mercelchislaneous l.c.l. railway operating revenues railway expenses Net railway operating income Net income Annual Annual ,, 9.0 9,, ,9 8, ,8, SEASONALLY ADJUSTED SEASONALLY ADJUSTED 9 September... October November... December... 9 January February... March April. August September... October November ' ' August... September. October.... November.. December.. 9 January.... February... March April August... September. October , P UNADJUSTED UNADJUSTED 9 September... October November... December... 9 January February... March April.. August September... October November August.... September. October.... November.. December.. 9 January.... February... March April August... September. October P 'Revised. NOTE. For description back data, see pp. 9- of the BULLETIN for 9. Based on daily average loadings. Basic data compiled by Association of American Railroads. Totai index compiled by combining indexes for classes with weights derived from revenue data of the Interstate Commerce Commission. P Preliminary. - Revised. NOTE. Descriptive material back figures may be obtained from the Division of Research Statistics. Basic data compiled by the Interstate Commerce Commission. Annual figures include revisions not available monthly. JANUARY 9

80 DEPARTMENT STORE STATISTICS [Based on value figures] MONTHLY INDEXES OF SALES [9-9 average = 00] Year month United States Federal Reserve district New York 'hilalelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco SEASONALLY ADJUSTED 9 December 9 January February March April August September October November December 9 January February March April August September October November UNADJUSTED 9 December 9 January February March April August September October November December 9 January February March April August September October November ' ' ' ' ' ' ' 0 r Revised. NOTE. For description monthly indexes for back years, see pp. - of BULLETIN for 9. 8 FEDERAL RESERVE BULLETIN Digitized for FRASER

81 SALES, STOCKS, AND OUTSTANDING ORDERS [As reported by 9 department stores in various Federal Reserve districts] average 90 average 9 average 9 average 9 average 9 average 9 Feb Mar Apr Aug Sept Oct Nov Dec 9 Jan Feb Mar... Apr Aug Sept Oct Nov Amount (In millions of dollars) Sales (total for month) P Stocks (end of month) P P0 DEPARTMENT STORE STATISTICS Continued Outsting orders (end of month) ' P Index of stocks (9-9 average = 00) Seasonally adjusted P0 Unadjusted P Aug. Sept. Oct. Nov. Dec. Jan. WEEKLY INDEX OF SALES [Weeks ending on dates shown. 9-9 average = Aug. Sept. Oct. Without seasonal adjustment Nov. Dec. Jan , Aug. Sept. Oct. Nov. Dec Aug. Sept. Oct. Nov. Dec. Jan Jan Feb..... Feb P Preliminary,» Revised. Back figures. Division of Research Statistics. NOTE. Revised series. For description back figures see pp. 8-8 of BULLETIN for September 9. SALES BY FEDERAL RESERVE DISTRICTS AND BY CITIES [Percentage change from corresponding period of preceding year] Nov. 9 Oct. 9 9 Nov. 9 Oct. mos. 9 Nov. 9 Oct. 9 9 Nov. 9 Oct. 9 nos. 9 United States... Boston New Haven Portl Boston Springfield Worcester Providence New York Bridgeport Newark Albany Binghamton... Buffalo Elmira Niagara Falls.. New York City Poughkeepsie.. Rochester Schenectady... Syracuse Utica Philadelphia..., Trenton Lancaster Philadelphia.. Reading Wilkes-Barre.. York Clevel, Akron Canton Cincinnati Clevel. Columbus Springfield Toledo * Revised * S r { Clevel-Con t. Youngstown... Erie Pittsburgh Wheeling Richmond Washington... Baltimore Raleigh, N. C.. Winston-Salem. Charleston^. C. Greenville, S. C. Lynchburg.... Norfolk Richmond Charleston, W. Va Clarksburg... Huntington.... Atlanta Birmingham... Mobile Montgomery... Jacksonville... Miami Orlo Tampa Atlanta Augusta Columbus Macon Baton Rouge... New Orleans... Bristol, Tenn... Jackson Chattanooga... Knoxville Nashville +8 +~ Chicago Chicago Peoria Fort Wayne... Indianapolis... Terre Haute... Des Moines Detroit Flint Gr Rapids.. Lansing Milwaukee... Green Bay Madison St. Louis Fort Smith... Little Rock... Quincy Evansville Louisville East St. Louis.. St. Louis St. Louis Area.. Springfield Memphis Minneapolis Kansas City... Denver Pueblo Hutchinson Topeka Wichita Joplin Kansas City... St. Joseph Omaha Oklahoma City. Tulsa r Dallas Shreveport... Dallas Fort Worth Houston San Antonio... Corpus Christi. San Francisco.. Phoenix Tucson Bakersfield... Fresno Long Beach Los Angeles Oakl Berkeley... Riverside San Bernardino Sacramento... San Diego San Francisco.. San Jose Santa Rosa... Stockton Vallejo Napa Boise Nampa Portl Salt Lake City. Bellingham... Everett Seattle Spokane Tacoma Yakima r+0 - r- + r +s + r JANUARY '

82 DEPARTMENT STORE STATISTICS Continued SALES AND STOCKS, BY MAJOR DEPARTMENTS Per cent change from a year ago (value) Ratio of stocks to sales Department Number of stores reporting Sales during period Stocks (end of month) October Oct. 9 Ten mos. 9 Oct GRAND TOTAL entire store MAIN STORE total Women's apparel accessories Coats suits Dresses Blouses, skirts, sportswear, etc Juniors' girls' wear Infants' wear Aprons, housedresses, uniforms Underwear, slips, negligees Corsets, brassieres Hosiery (women's children's) Gloves (women's children's) Shoes (women's children's) Furs Neckwear scarfs Hkerchiefs Millinery Hbags small leather goods Men's boys' wear Men's clothing Men's furnishings, hats, caps Boys' clothing furnishings Men's boys' shoes slippers Home furnishings Furniture, beds, mattresses, springs Domestic floor coverings Draperies, curtains, upholstery Major household appliances Domestics, blankets, linens, etc Lamps shades China glassware Housewares Piece goods Cotton wash goods Small wares Lace, trimmings, embroideries, ribbons Notions Toilet articles, drug sundries, prescriptions Jewelry silverware Art needlework Stationery, books, magazines Miscellaneous Luggage BASEMENT STORE total Women's apparel accessories Men's boys' clothing furnishings Home furnishings Piece goods Shoes NOTE. Group totals include sales in departments not shown separately. Figures for basement store are not strictly comparable with those for main store owing chiefly to inclusion in basement of fewer departments somewhat different types of merchise. The ratio of stocks to sales is obtained by dividing stocks at the end of the month by sales during the month hence indicates the number of months' supply on h at the end of the month in terms of sales for that month SALES, ACCOUNTS RECEIVABLE, AND COLLECTIONS Index numbers, without seasonal adjustment, 9 average 00 Percentage of total sales Year month Sales during month Cash Charge account Accounts receivable at end of month Charge account Collections during month Charge account Cash sales Instalment Instalment Instalment Instalment sales Chargeaccount sales 9 October November December ' January February March April August September October November r Revised. NOTE. Data based on reports from a smaller group of stores than included in the monthly index ot sales shown on page FEDERAL RESERVE BULLETIN

83 CONSUMER CREDIT STATISTICS TOTAL CONSUMER CREDIT, BY MAJOR PARTS [Estimated amounts outsting. In millions of dollarsl Instalment credit End of month or year consumer credit nstalment credit Sale credit Automobile Loans Singlepayment loans Charge accounts Service credit ,,89,8,08,90,8,9,,,0 8,008 9,0 9,9,,,90,,0,,,8,89,0,0,9,8,,0,98,,000,08,,0,9 9,,,80,,,,9,0,,9 8 8, ,89,8 90,,9,9 8 00,9,0 98 8,,8,,,,80, ,0,9,,,0,,0,8,8,,,0 9 8,08,0,,8,88,0,9,9,0,9,,8,,08 0,9,9,9,8,,0,,,98, Oct Nov Dec 9,,9,90,9,9, ,9,0,8,,,0,,,8 8 9 Jan Feb Mar Apr Aug Sept Oct Nov 9,8,0,8,8,9 ',,9,88, P.9 P,8,0,9,0,988,00 ',0,08,0,0 *,9 P P PS P0 P P P8,,,9,,8,,,8,,,, ,,9,8 l80 Pl.08,,8,9,0,88,,9,,0 PI, Pl.88 8 P P8 P Preliminary. r Revised. Includes repair modernization loans insured by Federal Housing Administration. Noninstalment consumer loans (single-payment loans of commercial banks pawnbrokers). CONSUMER INSTALMENT SALE CREDIT, EXCLUDING AUTOMOBILE CREDIT [Estimated amounts outsting. In millions of dollars] End of month or year Oct Nov Dec 9 Jan Feb Mar Apr... Aug Sept Oct Nov,9,0 98 8, L,8,,, L,80 L P Preliminary P P8 JANUARY 9, excluding automobile Department stores mailorder houses P P Furniture stores P P Household appliance stores Pll P Jewelry stores P P All other retail stores P8 P9 End of month or year Oct Nov Dec 9 Jan Feb Mar Apr Aug Sept Oct Nov CONSUMER INSTALMENT LOANS [Estimated amounts outsting. In millions of dollars] ,0,9,,,0,,0,8,8,9,0,8,,,9,,8 r,,,8, V, PI, Commercial banks P8 P P9 P09 Small loan companies Industrial ranking companies P8 P9 Credit unions P P0 Insured Miscellaneous repair lenders modernization loans P88 P90 ' ' 0 P P r p Preliminary. Revised. These figures include only personal instalment cash loans retail automobile direct loans, shown on the following page, a small amount of other retail direct loans ( million dollars at the end of November 9), not shown separately. This series is in process of revision. Includes only loans insured by Federal Housing Administration. 8

84 CONSUMER CREDIT STATISTICS Continued CONSUMER INSTALMENT CREDITS OF COMMERCIAL BANKS, BY TYPE OF CREDIT [Estimates. In millions of dollars] Month or year Outsting at end of period: October... November., December.. 9 January..., February.., March April August September., October P... November, Volume extended during month: 9 October.... November.. December.. 9 January.... February... March April August September.. October P... November?.,09,0, Automobile retail Purchased Direct loans retail, purchased direct Repair modernization loans Personal instalment cash loans P Preliminary. Includes not only loans insured by Federal Housing Administration but also noninsured loans. CONSUMER INSTALMENT LOANS MADE BY PRINCIPAL LENDING INSTITUTIONS [Estimates of volume made in period. In millions of dollarsl Month or year 9 April August September October November..., December 9 January February... March April August September October? November?.. Commercial banks Small loan companies Industrial banking companies Credit unions P Preliminary. These figures for loans made include only personal instalment cash loans retail automobile direct loans, which are shown elsewhere on this page, a small amount of other retail direct loans ( million dollars in November 9) not shown separately. This series is in process of revision. FURNITURE STORE STATISTICS RATIO OF COLLECTIONS TO ACCOUNTS RECEIVABLE i Item Percentage change from preceding month Nov. 9 Oct. 9 Sept. 9 Percentage change from corresponding month of preceding year Nov. 9 Oct. 9 Sept. 9 Month Department stores Instalment accounts Furniture stores Household appliance stores Jewelry stores Charge accounts Department stores Net sales: Cash sales... Credit sales: Instalment Charge account Accounts receivable, at end of month: I nstalment Collections during month: I nstalment Inventories, end of month, at retail value. r Revised '+ '+ -+ ' '+9 '+0 + ' ' October November... December... 9 January February March April August September.. October November... r 0 ' ' ' ' Revised. Ratio of collections during month to accounts receivable at beginning of month. 8 FEDERAL RESERVE BULLETIN

85 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index numbers of the Bureau of Labor Statistics. 9 = 00] Year, month, or week All commodities Foods Hides leather products Textile products Fuel lighting materials commodities Metals metal products Building materials Farm products Chemicals allied products Housefurnishing goods Miscellaneous : T October... November December. 9 January.. February. March April August... September October... November Week ending: 9 Aug. 8.. Aug... Sept... Sept. 8.. Sept... Sept... Sept. 9.. Oct... Oct... Oct. 0.. Oct... Nov... Nov. 0.. Nov... Nov... Dec... Dec. 8.. Dec... Dec... Dec Subgroups 9 9 Nov. Aug. Sept. Oct. Nov. Subgroups Nov. 9 Aug. Sept. Oct. Nov..Farm Products: Grains Livestock poultry farm products, Foods: Dairy products Cereal products Fruits vegetables Meats foods Hides Leather Products: Shoes Hides skins Leather leather products - Textile Products: Clothing Cotton goods Hosiery underwear Silk Rayon Woolen worsted goods... textile products. Fuel Lighting Materials: Anthracite Bituminous coal Coke Electricity Gas Petroleum products,,, 0, 9,, 0,., 0, 0,, , 00, 9, 0, Metals Metal Products: Agricultural implements... Farm machinery Iron steel Motor vehicles Nonferrous metals Plumbing heating Building Materials: Brick tile Cement Lumber Paint paint materials.. Plumbing heating Structural steel building materials... Chemicals Allied Products: Chemicals Drugs Pharmaceuticals Fertilizer materials Mixed fertilizers Oils fats Housefurnishing Goods: Furnishings Furniture Miscellaneous: Auto tires tubes Cattle feed Paper pulp Rubber, crude miscellaneous S Lumber series revised from September 9. Back figures. Bureau of Labor Statistics, Department of Labor. JANUARY 9 8

86 GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND INCOME PAYMENTS [Estimates of the Department of Commerce. In billions of dollars] Annual totals Half-year periods Unadjusted Seasonally adjusted annual rates Gross national product Government expenditures for goods services... Federal Government War Nonwar State local govern- Private gross capital formation. Construction Residential Producers durable equipment Net change in business inventories Net exports of goods services.. Net exports monetary use of gold silver Consumer goods services Durable goods Nondurable goods Services }, t ) Gross national product... Deductions: Business tax nontax liabilities Depreciation depletion business reserves. Capital outlay charged to current expense Adjustments: For inventory revaluation For discrepancies National income Additions: Transfer payments Deductions: Corporate savings Contributions to social insurance funds Income payments to individuals i iei Income payments to individuals Personal taxes nontax payments Federal State local Disposable income of individuals Consumer expenditures. Net savings of individuals National income compensation of employees Salaries wages Supplements Net income of proprietors.. Agricultural Nonagricultural Interest net rents Net corporate profit Dividends Savings "li Seasonally adjusted data only are available for 9. Less than 0 million dollars. NOTE. Detail will not necessarily add to totals because of rounding. For a general description of the series methods of estimating, see Milton Gilbert R. B. Bangs, "Preliminary Estimates of Gross National Product, -9," Survey of Current Business, 9. 8 FEDERAL RESERVE BULLETIN

87 DECEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates of the Department of Agriculture, by States, as of December, 9] (In thouss of units) Cotton Corn Winter wheat Spring wheat Federal Reserve district Production 9 Estimate Dec., 9 Production 9 Estimate Dec., 9 Production 9 Estimate Dec., 9 Production 9 Estimate Dec., 9 Boston New York. Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City Dallas San Francisco Bales,0,,,0 9 Bales,,8,8,9 8 Bushels, 9,0,08 8,0,9,,9,9 8,0,9 0, 8,0,00 Bushels,,,9 0, 8,8 8,9,,90 9, 8,9 9, 80,8,98 Bushels 9, 8,0,98,8 9,,,9,0,90,8 9, Bushels 0,9,9,0,,9, 8,9, 0,0, 9, Bushels 0 8 8,0,,90 Bushels 0 8 0,,09 00,,0 9,9,0,0,08,0 8,90 8,,,9 Oats Tame hay Tobacco White potatoes Federal Reserve district Production 9 Estimate Dec., 9 Production 9 Estimate Dec., 9 Production 9 Estimate Dec., 9 Production 9 Estimate Dec., 9 Boston New York Philadelphia Clevel Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Bushels,,,0, 9,0 8, 88,,9,0 0,8,8,88 Bushels,9,,8,0,9 0,9 9, 8,,89 9,,00 9,9 Tons,9,98,,00,0, 8,9, 0, 8,9,00, Tons,9,9,,0,00,8 9,8 8,9 0, 8,98,9, Pounds,,0,89 8,,0,,, 8,0,,9 Pounds,9,0,,0,8,8 9,8, 8,,0,8 Bushels,09, 9,,8 8,00,, 8,9,88,,00 9,98 Bushels,,8 9,,0,988 8,89,8 0,,9,, 0,9....,,,, 8,0 9,,9,0,0,8 8,, Includes,000 bales grown in miscellaneous territory. Includes 8,000 bales grown in miscellaneous territory. NOTE. 9 figures for all crops except cotton are as revised in December 9. JANUARY 9 8

88 CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK* OS BANK CREDIT, MONEY RATES, AND BUSINESS Chart book page Nov. 8 Dec. 9 Dec. Dec. 9 Dec. Chan book page 9 Sept. Oct. Nov. - WEEKLY FIGURES i RESERVES AND CURRENCY Reserve Bank credit, total U. S. Govt. securities, total Bills Certificates Notes Bonds Discounts advances Gold stock Money in circulation Treasury cash Treasury deposits Member bank reserves, Required reserves Excess reserves e Excess reserves (weekly average), total e. New York City Chicago Reserve city banks Country banks e MEMBER BANKS IN LEADING CITIES 0 cities: Loans investments U. S. Govt. obligations Dem deposits adjusted U. S. Govt. deposits Loans New York City: Loans investments U. S. Govt. obligations, total Bonds Certificates Notes guar. securities Bills Dem deposits adjusted U. S. Govt. deposits Interbank deposits Time deposits Loans, total Commercial For purchasing securities: Brokers' on U. S. Govts Brokers' on other securities... To others All other 00 cities outside New York: Loans investments U. S. Govt. obligations, total Bonds Certificates Notes guar. securities Bills Dem deposits adjusted U. S. Govt. deposits Interbank deposits Time deposits Loans, total Commercial For purchasing securities All other MONEY RATES, ETC. Treasury bills (new issues) Treasury notes (taxable) U. S. Govt. bonds: Partially tax-exempt, Taxable, High-grade corporate bonds ( issues).. Corporate Aaa bonds Corporate Baa bonds Stock prices (9-9 = 00), total Industrial Railroad Public utility Volume of trading (mill, shares) BUSINESS CONDITIONS Steel production (% of capacity) Electric power prod. (mill. kw. hrs.) Freight carloadings (thous. cars) Department store sales (9-9 = 00). Wholesale prices (9 = 00), total 9 Farm products 9 than farm food , , In billions of dollars...: J ,.0.0: J , P. J>. Pl Pl i..9 Per cent per annum ].. In unit indicated , , () , :.8.C. P. Pi. Pi. <.0.0. P () MONEY RATES, ETC. Corporate Aaa bonds F. R. Bank discount rate (N. Y.). Treasury bills (new issues) , MONTHLY FIGURES RESERVES AND CURRENCY JReserve Bank credit JGold stock Money in circulation Treasury cash Treasury deposits Member bank reserves, total, Central reserve city banks Reserve city banks Country banks Required reserves, total Central reserve city banks Reserve city banks Country banks Excess reserves, total Balances due from banks: Reserve city banks Country banks [Money in circulation, total 8 Bills of $0 over 8 $0 $0 bills 8 Coins, $,, $ bills 8 ALL BANKS IN U. S. deposits currency 9 Dem deposits 9 Time deposits 9 ~!urrency outside banks 9 U. S. Govt. deposits 9 CONSUMER CREDIT Consumer credit, total 8 Single payment loans 8 Charge accounts 8 Service credit 8 Instalment credit, total 8, 9 Instalment loans 9 Instalment sale credit, total... 9 Automobile 9 9 TREASURY FINANCE U. S. Govt. obligations outsting, total interest-bearing 0 By classes of securities: Bonds (marketable issues) 0 Notes, cert., bills 0 Savings bonds tax notes... 0 Special issues 0 By maturities: years over 0-0 years 0-0 years 0 Within years 0 Within year 0 Certificates 0 Bills 0 Holdings of U. S. Govt. obligations: Commercial banks Fed. agencies trust funds... Federal Reserve Banks Mutual savings banks Insurance companies investors, total Marketable issues Stock prices (9-9= 00): Industrial Railroad Public utility Volume of trading (mill, shares)... Brokers' balances (mill, dollars): Credit extended customers 9 Money borrowed 9 Customers' free credit balances... 9 In billions oj dollars P.0 P.90 P.0 P r 9.0 ' V.8.0 P.80 P8.0 P.0 P.0 Pll.0 P.9 Pl.8 Pl. P. P. Pl.8 P. P. P Per cent per annum., In unit indicated P8.O P80.0 P8.00 P.O P.0 P. Pl. Pl.8 P. P. Pl. P.80> P. P For footnotes see following page. 8 FEDERAL RESERVE BULLETIN; 8 8.,08 9., *. 9.9,09 9-

89 CURRENT STATISTICS FOR FEDERAL RESERVE CHART BOOK Continued Chart book page Sept. 9 Oct. Nov. Chart book page 9 Sept. Oct. Nov. MONTHLY FIGURES Cont. BUSINESS CONDITIONS Income payments (mill, dollars) : 0 Salaries wages 0 0 Cash farm income (mill, dollars): Livestock products Crops Govt. payments Armed forces (mill, persons) Civilian labor force (mill, persons): Male Female Unemployment Employment Nonagricultural Agricultural Industrial production: (9-9 = 00) Groups (points in total index): Durable manufactures Nondurable manufactures Minerals New orders, shipments, inventories ( = 00): New orders: Durable Shipments: Durable Nondurable Inventories: Durable Nondurable Factory employment pay rolls ( = 00): Pay rolls 8 Employment 8 Hours earnings at factories: Weekly earnings (dollars) 9 Hourly earnings (cents) 9 Hours worked (per week) 9 Nonagricultural employment (mill, persons): 0 Manufacturing mining 0 Trade 0 Government 0 Transportation utilities 0 Construction 0 Construction contracts ( mo. moving average, mill, dollars) :* Residential 8. Residential contracts (mill, dollars) : Public Private, total - -family dwellings Freight carloadings: (9-9 = 00) Groups (points in total index): Miscellaneous Coal All other Department stores (9-9 = 00) : Sales Stocks Exports imports (mill, dollars): Exports Excluding Lend-Lease exports Imports Excess of exports excluding Lend-Lease exports Cost of living (9-9 = 00): All items Food Clothing Rent In unit indicated,80 8,,,9 909, '0.8 ' P P P P ,9 P.0 8, P8.:, P.88, P,8,00 P,0,88 P, '. '. 8.. '. '.8 ' P9 P P0 P0 P0 P P8 P P P80 P P P0 P. P. P0.9 P. P. P. P. P. P.8 Pl.O P9 P8 P MONTHLY FIGURES Cont. BUSINESS CONDITIONS Cont. Wholesale prices (9=00): 9 Farm products 9 than farm food 9 QUARTERLY FIGURES MONEY RATES Bank rates on customer loans:, 9 cities New York City Northern Eastern cities Southern Western cities SECURITY MARKETS Corporate security issues: Net proceeds: All issues 8 Industrial 8 Railroad 8 Public utility 8 New money: All issues 8 Industrial 8 Railroad 8 Public utility 8 CALL DATE FIGURES ALL MEMBER BANKS Loans investments, total 0 U. S. Govt. obligations, total 0 Bonds Certificates Notes Bills Guaranteed obligations securities, total State local government obligations securities Loans, total 0 Commercial Real estate Brokers' Agricultural Dem deposits adjusted 0 CLASSES OF BANKS Central reserve city banks: Loans investments, total U. S. Govt. obligations securities Loans Dem deposits adjusted Time deposits Reserve city banks: Loans investments, total U. S. Govt. obligations securities Loans Dem deposits adjusted Time deposits Country banks: Loans investments, total U. S. Govt. obligations securities Loans Dem deposits adjusted Time deposits In unit indicated Apr Sept. Oct.- Dec. Per cent per annum In millions of dollars, Dec. 0, Mar In billions of dollars ) i) ) ) ) ( ) ( ) ( ) ( ) Estimated. P Preliminary. r Revised. Figures for other than Wednesday dates are shown under the Wednesday included in the weekly period. Includes a 8 million dollar special series certificate of indebtedness. No partially tax-exempt bonds due or callable in years over. * For charts on pages 0,,, figures for a more recent period are available in the regular BULLETIN tables that show those series. Adjusted for seasonal variation. Figures available for December dates only. * Copies of the Chart Book may be obtained'at a price of 0 cents each. JANUARY 9 8

90 INTERNATIONAL FINANCIAL STATISTICS PAGE Gold reserves of central banks governments 89 Gold production 90 Gold movements 90 Net capital movements to United States since January, Central banks 9-00 Money rates in foreign countries 0 Commercial banks 0 Foreign exchange rates 0 Price movements: Wholesale prices 0 Retail food prices cost of living 0 Security prices 0 Tables on the following pages include the principal available statistics of current significance relating to gold, international capital transactions of the United States, financial developments abroad. The data are compiled for the most part from regularly published sources such as central commercial bank statements official statistical bulletins, some data are reported to the Board directly. Figures on international capital transactions of the United States are collected by the Federal Reserve Banks from banks, bankers, brokers, dealers in the United States in accordance with the Treasury Regulation of November, 9. Back figures for all except price tables, together with descriptive text, may be obtained from the Board's publication, Banking Monetary Statistics. FEDERAL RESERVE BULLETIN

91 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] End of month United States Argentina Belgium Brazil British India Canada Chile Colombia Cuba Czechoslovakia Denmark Egypt France Germany Greece 98 Dec.... Dec 90 Dec 9 Dec 9 Dec 9 Dec 9 Dec 9 j an Feb Mar... Apr Aug Sept.... Oct Nov....,,,,,,98 0, ,0 0,9 0, 0,0 0, ,0 0,0 0,00 8 il.lll ,0,09,000,000,000,000,,,,,,, End of month Hungary Iran (Persia) Italy Japan Java Mexico Netherls New Zeal Norway Peru Pol Portugal Rumania South Africa Spain 98 Dec Dec 90 Dec Dec 9 Dec 9 Dec 9 Dec... 9 P Jen Feb. Mar.... Apr.... Aug. Sept.... Oct. Nov.... P8 P8 P8 P End of month Sweden Switzerl Turkey United Kingdom Uruguay Venezuela Yugoslavia B.I.S. countries Governmeni gold reserves not included n previous figures End of month United States France United Kingdom Belgium 98 Dec Dec 90 Dec 9 Dec. 9 Dec 9 Dec 9 Dec 9 j an Feb Mar Apr Aug Sept Oct. Nov r ,0 08,0,0 0,0, , , r 8 r 8 8 r Dec Mar.. Sept... Dec Dec... 9 Dec 9..'.. Dec Dec... I9 Mar Sept Dec. 9 Mar... Revised. P Preliminary. Figures through March 90 iind for December 9, December 9, December 9 Reported at infrequent intervals or on deinclude, in addition to gold of the Centra I Bank held at home, gold of the Central Bank held layed basis: U. S. Exchange Stabilization Fund abroad gold belonging to the Argentine Stabilization Fund. (Special A/c No. ); U. K. Exchange Equali- On, 90, golci belonging to Bank of Canada transferred to Foreign Exchange Control Board. Gold reported since that time is gold held by Figure for December 98 is that officially reported on Apr. Ministei zation Account ; France Exchange Stabilization - of Finance. Fund Rentes Fund; Belgium Treasury. 0, 98. Figure for end of September. Figures relate to last official report dates for the respective countries, as follows : Java Reported figure for total British gold reserves Jan., 9; Norway Mar. 0, 90; Pol, ; Yugoslavia Feb. 8, 9. on Aug.,, less reported holdings of Bank Figure for February L9; beginning Mar. 9, 9, gold reserves no longer reported sepaia, Austria through Mar., 98, Belgian NOTE. For available back figures for de- of Engl on that date. rately. Figure for Sept., 9. These countries are: Albania, Algeria Austra Congo, Bolivia, BulgariEi, China, Costa Rica beginning 9, Danzig through Aug., tails regarding special internal gold transfers, Ecuador, El Salvador, Estonia, Finl, Guatemala, Icel, Irel beginning February affecting the British French institutions, see 9, Latvia, Lithuania, Viorocco Thail (Siam). Figures for certain of these countries Banking Monetary Statistics, p.. have been carried forward from ast previous offic al report BULLETIN for Februarv 9. D.90. Gold holdings of Bank of Engl reduced to nominal amount by gold transfers to British Exchange Equalization Account during. NOTE. For back figures, see Banking Monetary Statistics, Tables -0, pp. for a description of figures, including details reg ing the reported data, see pp. - in the same jarding s] -, Decialinternal gold transfers affectpuolication. JANUARY , 8 9 9

92 Year or month Oct.... Nov Dec. 9 Jan Feb.. Mar Apr.. Aug... Sept. Oct Estimated production outside U.S.S.R.i 8,00 88, 9,,0,,,0,08,0,9,9,88,9 reported monthly 08,,8 8,89 89,8 98,0,00,9,09,,089,9 98, 8,90,, 0 8,0,09,9,,,09 P.9 PSS, South Africa,9,090 9,8 0,0,9 8, 9,8 0,8 9,9 8 9,8 8,0 8, 98 8,9 0,800,,,809 GOLD PRODUCTION OUTSIDE U. S. S. R. [In thouss of dollars] 80 L, I 0,8,8,,,9 L 8 /],8 /I,8 L L 0 L L 0,0, 0,0,0 0 9,0 88,8,,,08,,8, 8 0, ,00,8,,,,,0 /.0 J 0,80 L,88 I 9,8,8,,0,8 L.9.00 /I, / / Production reported monthly Africa North South America Rhodesia Africa Congo States* West Belgian United Canada Mexico Colombia Chile $ = / grains of gold* 0 fine; i. e., an ounce of fine g( Hd = $,,,9 08,9 0,0,,0 8,0,,,9,,9,88, 9, 8,0,9,8,09,8,, 9,08 8,9 0,8 8,08 8,9, 9,9,8 9, 8,,0 8,0 8,,9,0 8, 0,90 8,009 8, 8,9 9,9 8,0 9, 9,9, 9,, 8,8 0,09 8,890 0,88,,9,, 09, 8,08,,9 9,9, 9 0,9 9, 0,000 0,88, ,89,08 0, 8,8 0,980 9,, Nicaragua, ,,0,9, 8,,, Australia 8 0,9,0 0,8,98,,8,88,09, 8,0,0.9,0,0,0,0 L, L, L,90,9 L.00,0,90 /,90 British India 9,,8,,0,8,08 0, 9,90 8,90 8,80, Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual production as follows: 9, million dollars; 9, 8 million; 9, 8 million; 9, 8 million; 98, 80 million. P Preliminary. / Figure carried forward. Annual figures through 90 are estimates of U. S. Mint; annual figure for 9 based on monthly estimates of American Bureau of Metal Statistics. Beginning April 9, figures are those reported by American Bureau of Metal Statistics. Beginning January 9 they represent Gold Coast only. Beginning 90 monthly figures no longer reported. Annual figure for 90 estimated at three times production for first four months of the year. Includes Philippine Isls production received in United States. Annual figures are estimates of United States Mint. Monthly figures represent estimates of American Bureau of Metal Statistics, those for 9 having been revised by adding to each monthly figure $9, so that aggregate for the year is equal to annual estimate compiled by Bureau of Mint in cooperation with Bureau of Mines. Figures for Canada beginning 9 are subject to official revision. Beginning April 9, figures no longer reported. Annual figure for 9 is rough estimate based on reported production of $,809,000 in first three months of year. Gold exports, reported by the Banco Nacional de Nicaragua, which states that they represent approximately 90 per cent of total production. 8 Beginning December 9, figures are those reported by American Bureau of Metal Statistics. For the period December 9-December 9 they represent total Australia; beginning January 9, Western Australia only. 9 Beginning 90, figures are those reported by American Bureau of Metal Statistics. NOTE. For explanation of table sources, see BULLETIN for February, p. ; 98, p. ; 98, p. 0; April 9, pp. -; Banking Monetary Statistics, p.. For annual estimates compiled by the United States Mint for these other countries in the period 90-9, see Banking Monetary Statistics, pp. -. Year or month Apr Tuly Aug Sept Oct NOV.P.... Jan.-Nov.p net imports,,,9,09,,8,8,0,9,9,,,, 98,8,8 8,98-8,9,98-8, -8,8,9,9, 89 -,0,80,,09 89,,08,8,8,0,08,9,9 88-9,8 9 France 0, 9,, -,0 8,,98,8 8,90, 90,89,88, 9 GOLD MOVEMENTS UNITED STATES [In thouss of dollars at approximately $ a fine ounce] 9,8,8,00,,09,8,0 Net imports from or net exports ( ) to: 0, 8,,89, United Kingdom Belgium Netherls Sweden Switzerl,0 98,,, 8,98 90,0 8 Canada 8,89 9,,8,80,,,,0,0 08,9,90, ,9,0 Mexico 0,0, 9,9 8,8,,0 9,880,9 0,0 -,8-09,9 8, 9,8 8, 9,9 0,90 9,8.,00 8,9,8 9,80,89-08,0,0 -,00,8,8,9 9,,98 -,9 Latin American Republics Philippine Isls,08,,,,880, 8,, ,09,98,80, 9,,0 0,, South Africa 8 8 0,8 8, 9,89,9 0, 0 8 Japan, 8,0,0,9 9, Australia British India,80,8,89 0,,9 0,9 9,989 9, 9 All other countries,09 8,9 0,8 8,90,0 8, 8,08,0 0,008-8, 8, 9 -, -8, -0,89 -,0 0 -, -, -,8. P Preliminary. Differs from official customhouse figures in which imports exports for January 9 are valued at approximately $0. a fine ounce. Includes $8,09,000 from China Hong Kong, $,9,000 from Italy, $0,9,000 from Norway, $,8,000 from other countries. Includes $,08,000 from Portugal, $,9,000 from Italy, $,0,000 from Norway, $0,8,000 from U. S. S. R., $,8,000 from Hong Kong, $0,8,- 000 from Netherls Indies, $,0,000 from Yugoslavia, $,8,000 from Hungary, $0,,000 from Spain, $,0,000 from other countries. * Includes $,90,000 from U. S. S. R., $8,,000 from other countries. Includes $,980,000 to China $,000 from other countries. NOTE. For back figures see Banking Monetary Statistics, Table 8, pp. 9-, for description of statistics, see p. in the same publication. 90 FEDERAL RESERVE BULLETIN

93 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY, 9 [Net movement from United States, ( ). In millions of dollars] TABLE. TOTAL CAPITAL MOVEMENT, BY TYPES From Jan., 9, through Increase in foreign banking funds in U. S. Official Decrease in U. S. banking funds abroad Foreign securities: Return of U. S. funds Domestic securities: Inflow of foreign funds Inflow in brokerage balances 9 Mar. (Apr. ) ( ) Sept. (Oct. ) Dec. (Jan., 9) , Mar. (Apr. ) ( ) Sept. 0 Dec. 0,.,.,8., Mar. 0 Sept. 9 Dec. 9,9.,.9,9.9,0.,.,.,., ,08.8,9., ,0.,09.,., Mar. 0 9 Sept. 8 Dec. (Jan., ),0.,0.8,.0, ,80., , ,0.,.,., Mar. 9 8 Sept. Dec. (Jan., 90),9.,9.,0.,0.,.,.8,9., ,.,8.,9., ,88.9,0.,., Mar/(Apr. ) ( ) Sept. (Oct. ) Dec. (Jan., 9),.9,0.,8.,.,9.0,80.,09.8, ,.,00.8,9.9,90.8,980., ,09.0, Mar. (Apr. ) ( ) Sept. (Oct. ) Dec.,.,.,0.,0.,8.8,9.,9.,8.,0.,.,.,0.,8.0,88.,8., Mar. (Apr. ) 0 Sept. 0 Dec. 9 Mar. 0 Sept. 0 Dec.,08..,9.,.9,8.0,.,0.,.,8.,8.0,0.9,.,0.,.,00.,0.,9. 9.0,.,9.,.0,.,0.,90.9,.,.0,8.,8.,908.,90.,9.,., Jan....; Feb. 9 Mar. Apr. 0 0,.9,8.,.9,.,8.9,9.,8.,8.,88.,88.0,88.,8.,9.,8.,8.0,80.,.8,.,009.0,0.,09.,00.,.9, Aug. Sept. 0 Oct. Nov. 0 Dec..,.,0.9,0.9,0.,0.,.,0.8,.,.,80.,.,.,.9,89.,98.8,89.8,.0,.,.9,.8,.,90.,., ,00.8,009.,0.,0.8,0., Jan. Feb. 8 Mar. Apr. 0 0,.,.,9.,9.,8. 8,0.9,.9,88.,909.9,98.,00.,.,8.,8.,.,88.9,.0,90.,.,00.0,.,9.,0., ,0.9,0.,09.,0.,088.9, Aug. 8,9.8 8,.,.,0.0,08.8,09.,.9, ,0., This category made up as follows: through Sept., 98, funds held by foreign central banks at the Federal Reserve Bank of New York; beginning Sept. 8, 98, also funds held at commercial banks in New York City by central banks maintaining accounts at the Federal Reserve Bank of New York; beginning, 90, also funds in accounts at the Federal Reserve Bank of New York which had been transferred from central bank to government names; beginning with the new series commencing with the month of 9, all funds held with banks bankers in the United States by foreign central banks by foreign central governments their agencies (including official purchasing missions, trade shipping missions, diplomatic consular establishments, etc.). The.weekly series of capital movement statistics reported through, 9, was replaced by a monthly series commencing with 9. Since the old series overlapped the new by one day, the cumulative figures were adjusted to represent the movement through 0 only. This adjustment, however, is incomplete since it takes into account only certain significant movements known to have occurred on. Subsequent figures are based upon new monthly series. For further explanation, see BULLETIN for January 9, p. 98. Amounts outsting Aug., in millions of dollars: total foreign banking funds in United States,,0.8, including official funds,,.8,. other funds,,.0; United States banking funds abroad, 9.; brokerage balances (net due "foreigners"),.. NOTE. Statistics reported by banks, bankers, brokers, dealers. For full description of statistics see Banking Monetary Statistics, pp. 8-0; for back figures through 9 see Tables, pp. -, in the same publication, for those subsequent to 9 see BULLETIN for September 9, pp JANUARY 9 9

94 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES Continued NET CAPITAL MOVEMENTS TO UNITED STATES SINCE JANUARY, 9 Continued [Net movement from United States, ( ). In millions of dollars] TABLE. TOTAL CAPITAL MOVEMENT, BY COUNTRIES From Jan., 9, through France Italy Europe Europe United Kingdom Netherls Switzerl Germany Canada Latin America Asia All other 9 Dec. (Jan., 9)... 9 Dec. 0 9 Dec Dec. (Jan., )... Dec. (Jan., 90) Dec. (Jan., 9)... 9 Dec. 9 Dec. 9 Dec. 9 Sept. 0 Oct. Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug.,.,08.,0.,8.,0.,.,0.,8.0,8.,0.9,0.,0.,.,.,.,9.,9.,8. 8,0.9 8,9.8 8, ,8.8, ,.,.0,0.,08.8,090.0,008.,0.,08.9,0.0,09.,0.,0.0, ,00. 8.,0..,.0.0,0..9,90. 9., ,. 80.9, , ,. 9., ,09.., ,.0 90., ,9.9 0.,9.8,00.,9.,0.9,0.,0.0,0.,09.,00. () ,0.,0.» 9.,00.8,08.,.,9.9,0.,.,., ,0.,.,.,.0,.,.8, ,0.,09.,0.9,0.,00.9,.,00.,0.,0.9,9.8,.,., TABLE. INCREASE IN FOREIGN BANKING FUNDS IN U. S., BY COUNTRIES From Jan., 9, through France Italy Europe Europe United Kingdom Netherls Switzerl Germany Canada Latin America Asia All other 9 Dec. (Jan., 9)... 9 Dec. 0 9 Dec Dec. (Jan., )... Dec. (Jan., 90) Dec. (Jan., 9)... 9 Dec. 9 Dec. 9 Dec. 9 Sept. 0 Oct. Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug ,8.,.,0.8,9.0,8.,0.,9.,.,80.,.,.,.9,88.,909.9,98.,00.,.,., , ,00.,.,98.,.9,9.,., ,09.,0.,0.9,0.,0.,9., ,0.,0.8,0.,9.,.8, TABLE. DECREASE IN U. S. BANKING FUNDS ABROAD, BY COUNTRIES From Jan., 9, through France Italy Europe Europe United Kingdom Netherls Switzerl Germany Canada Latin America Asia All other 9 Dec. (Jan., 9)... 9 Dec. 0 9 Dec Dec. (Jan., )... Dec. (Jan., 90) Dec. (Jan., 9)... 9 D ec# 9 Dec. 9 Dec. 9 Sept Oct. Nov. Dec. 9 j an# Feb. Mar. Apr. Aug ? ?...? Prior to Jan., 90, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." Inflow less than $0, SO S? ? FEDERAL RESERVE BULLETIN

95 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES Continued NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY, 9 Continued [Net movement from United States, ( ). In millions of dollars] TABLE. FOREIGN SECURITIES: RETURN OF U. S. FUNDS, BY COUNTRIES (Net Purchases by Foreigners of Foreign Securities Owned in U. S.) From Jan., 9, through France Italy Europe Europe United Kingdom Netherls Switzerl Germany Canada Latin America Asia All other 9 Dec. (Jan., 9) 9 Dec. 0 9 Dec Dec. (Jan., ) Dec. (Jan., 90) Dec. (Jan., 9) 9 Dec. 9 Dec. 9 Dec Sept. 0 Oct. Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug.,0.,0.8,0.,09.,0.9,0.,09.,0.,088.9,09.9,0., TABLE. DOMESTIC SECURITIES: INFLOW OF FOREIGN FUNDS, BY COUNTRIES (Net Purchases by Foreigners of U. S. Securities) From Jan., 9, through France Italy Europe Europe United Kingdom Netherls Switzerl Germany Canada Latin America Asia All other 9 Dec. (Jan., 9) 9 Dec. 0 9 Dec Dec. (Jan., ) Dec. (Jan., 90). 9.,.0,9., ,0.,09., Dec. (Jan., 9) 9 Dec. 9 Dec. 9 Dec Sept. 0 Oct. Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug TABLE. INFLOW IN BROKERAGE BALANCES, BY COUNTRIES (The Net Effect of Increases in Foreign Brokerage Balances in U. S. of Decreases in Balances Held by Brokers Dealers in U. S. with Brokers Dealers Abroad) From Jan., 9, through France Italy Europe Europe United Kingdom Netherls Switzerl Germany Canada Latin America Asia All other 9 Dec. (Jan., 9) 9 Dec. 0 9 Dec Dec. (Jan., ) Dec. (Jan., 90) 90 Dec. (Jan., 9) 9 Dec. 9 Dec. 9 Dec () Sept. 0 Oct. Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug , Prior to Jan., 90, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." Inflow less than $0,000. Outflow less then $0,000. JANUARY 9 9

96 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES [In millions of dollars] LIABILITIES Date France Italy Europe Europe United Kingdom Netherls Switzerl Germany Canada Latin America Asia All other 9 Dec. (Jan., 9) 9 Dec. (Jan., 9) 9 Dec. 0 9 Dec Dec. (Jan., ) Dec. (Jan., 90) 90 Dec. (Jan., 9) 9 Dec. 9 Dec. 9 Dec. 9 Sept. 0 Oct. Nov. 0 Dec. Dec. 9 Jan. Jan. Feb. 8 Mar. Apr. 0 0 Aug. 9.0,00.,9.,9.,.,0.0,8.,8.,98.,.,8.,.,.0,9.,.,8.8,89.,.,.,.0,0.,9.,08., , ,0.,.8 88.,.,.0,00.,8.,.,.9,9., ,.8, ,9. 9.0,.8,00.,0. 8,9.,0.,.8,.9,.,.,.,.,9.8,8., ,0.0,0.9,00., LIABILITIES SUPPLEMENTARY DATA Europe Date Europe Greece Belgium Denmark Finl Luxembourg Norway Portugal Rumania Spain Sweden USSR Yugoslavia All other Dec. (Jan., 90).. 90 Dec. (Jan., 9).. 9 Dec. 9 Dec. 9 Dec. 9 Sept. 0.. Oct. Nov. 0 Dec. 9 j an# i Feb. 8 Mar... Apr. 0 0 Aug Latin America Date Latin America Argentina Bolivia Brazil Chile Colombia*! Costa Rica* Cuba French West Indies Guiana Mexico Netherls West Indies Surinam Panama Peru Venezuela Latin America Dec. (Jan., 90) 90 Dec. (Jan., 9)... 9 Dec. 9 Dec. 9 D ec# i 9 Sept. 0 Oct. Nov. 0 Dec.. 9 Jan. Jan, Feb. 8 Mar Apr. 0 0 Aug ,0.0,0 9,00., For footnotes see p FEDERAL RESERVE BULLETIN

97 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES. BY COUNTRIES Continued [In millions of dollars] LIABILITIES SUPPLEMENTARY DATA Continued Asia All Date Asia China French Indo- China Hong Kong India, Burma, Ceylon British Malaya Japan (incl. Korea) Manchuria Netherls East Indies Philippine Isls Turkey Asia All other Australia Egypt New Zeal Anglo- Egyptian Sudan French Morocco Union of.south Africa Dec. (Jan., 90) Dec. (Jan., 9)..9 9 Dec Dec.. 9 Dec Sept. 0 Oct. Nov. 0 Dec. Dec. -i 9 Jan. Jan. ' Feb. 8 Mar. Apr. 0 0 Aug r.o ' ^8' ^ " ^ The figures in this table represent a breakdown of the columns headed "Asia" "All other" in the main table. The figures for "Asia" cover four countries from Jan., 90, five additional countries since 0, 9, while those for "All other" cover five countries available only from 0, 9. Prior to 0, 9, included under " Asia." Country breakdown not available until 0, 9. ' See footnote for main table. Footnotes to table on p. 9. Prior to Jan., 90, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "AH other." Certain of the figures are not strictly comparable with the corresponding figures for preceding months owing to changes in reporting practice of various banks. The cumulative figures in Tables,, of "Net Capital Movement to the United States" have been adjusted to exclude the unreal movements introduced by these changes. Figures shown above are adjusted to compare with those of previous months. The figures in this table represent a breakdown of the column headed " Europe" in the main table cover five countrievs from Jan., 90, seven additional countries since 0, 9. Prior to 0, 9, included under "All other." '» The figures in this table represent a breakdown of the column headed "Latin America" in the main table cover six countries from Jan., 90, seven additional countries since 0, 9. H Prior to 0, 9, included under " Latin America." ' Included "Canal Zone" prior to 0, 9. NOTE. For previous changes or corrections in the reporting practices of reporting banks (similar to those indicated in footnote above), which occurred on Aug., 9, Jan., 98, Oct. 8,,, 9, see Banking Monetary Statistics, pages 8-8. For changes subsequent to 9, which occurred on Apr. 0, 9, Sept. 0 Oct., 9, Mar., 9, see BULLETIN for September 9, pp ASSETS Date France i United Kingdom Netherls Sw itzer- tnd Germany Italy Europe Europe Canada Latin America Asia All other 9 Dec. (Jan., 9)..,9.9 9 Dec. (Jan., 9) Dec 0 9 Dec Dec. (Jan., ) s Dec. (Jan. 90 Dec. (Jan 9 Dec... 9 Dec... 9 Dec... Q sept 0 Oct Nov. 0.. Dec... 9 Jan... Feb. 8.. Mar... Apr Aug...,, 90).. 9) ^ s S. Prior to Jan., 90, the figures under Asia represent Far East only, the remaining Asiatic countries being included under "All other." NOTE. The figures in this table are not fully comparable throughout since certain changes or corrections took place in the reporting practice of reporting banks on Aug., 9, Oct. 8,. (See hanking Monetary Statistics, Table, pp. 89 9). On 0, 9, reporting practice was changed from a weekly to a monthly basis. For further information see BULLETIN for September 9, pp JANUARY 9 9

98 INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES Continued SHORT-TERM FOREIGN LIABILITIES AND ASSETS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES Continued [In millions of dollars] ASSETS SUPPLEMENTARY DATA Europe Date Europe Greece Belgium Denmark Finl Luxembourg Norway Portugal Rumania Spain USSR Sweden Yugoslavia All other Dec. (Jan., 90) 90 Dec. (Jan., 9) 9 Dec 9 Dec. 9 Dec. 9 vsept. 0 Oct Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug i () () () m i () () i ( ) () (») ( ) i ( ) () () m i Date Latin America Argentina Bolivia Brazil Chile Latin America Colombia Costa Rica Cuba French West Indies Guiana Mexico Netherls West Indies Surinam Panama Peru Venezuela Latin America Dec. (Jan., 90). 90 Dec. (Jan., 9). 9 Dec. i ' ' 9 Dec. 9 Dec. 9 Sept. 0 Oct. Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr. 0 0 Aug..! 8^ '.0' '' ( ) () ( ) ( ) () ( ). ( ) () Date "Asia China French Indo- China 8 Hong Kong India, Burma, Ceylon 8 Asia All? British Malaya 8 Japan (incl. Korea) Manchuria Netherls East Indies 8 Philippine Isls Turkey 8 Asia All other 9 Australia Egypt New Zeal Anglo- Egyptian Sudan French Morocco Union of South Africa Oth Dec. (Jan., 90).. 90 Dec. (Jan., 9)..8 9 Dec Dec.. 9 Dec.. 9 Sept. 0 Oct. Nov. 0 Dec. 9 Jan. Feb. 8 Mar. Apr Aug ( ) ( ) (») ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) The figures in this table represent a breakdown of the column headed " Europe" in the main table cover five countries from Jan., 9C seven additional countries since '0, 9. Prior to 0, 9, included under "All other." Less than $0,000. The figures in this table represent a breakdown of the column headed "Latin America" in the main table cover six countries from Jan., 9C seven additional countries since 0, 9. Prior to 0, 9, included under " Latin America." Included "Canal Zone" prior to 0, 9. The figures in this table represent a breakdown of the columns headed "Asia" "All other" in the main table. The figures for "Asia" cover fou countries from Jan., 90, five additional countries since 0, 9, while those for "All other" cover five countries available only from Prior to 0, 9, included under " Asia." 9 Country breakdown not available until 0, 9. 9 FEDERAL RESERVE BULLETIN

99 CENTRAL BANKS Bank of Engl (Figures in millions of pounds sterling) Assets of issue department Gold^ assets Assets of banking department Cash reserves Coin Notes Discounts advances Securities Note circulation Liabilities of banking department Bankers' Deposits Public liabilities Dec.. 90 Dec.. 9 Dec Dec Dec.. 9 Dec.. 9 Dec.. 9 Dec Dec Dec. 8. Dec.. 90 Dec.. 9 Dec.. 9 Dec Dec Dec < ,00.0, ,088., Jan.. Feb. 8. Mar. 8. Apr Aug. 9. Sept.. Oct.. Nov ,0.0,0.0,0.0,0.0 s,00.0,00.0»,0.0,0.0,0.0,0.0, ,9.,.,.8,.,9.,8.,0.,.9,9.9,., Assets Liabilities Bank of Canada (Figures in millions of Canadian dollars) Gold Sterling United States dollars Dominion provincial government securities Shortterm assets Note irculation Chartered banks Deposits Dominion government liabilities 8 9 Dec. 9 Dec. 9 Dec. 98 Dec. Dec Dec. 9 Dec. 9 Dec. 9 Dec. 9 Dec , Jan. Feb. 8 Mar. Apr. 0 0 Aug. Sept. 9 Oct. Nov ,08.,0.8,0.,0.,08.9,09., ,00.,08.,08.,0.,0.8,0.,08.8,09.9,.,., , Through February, valued at legal parity of 8 shillings a fine ounce; thereafter at market price, which fluctuated until Sept.,. when it was officially set at 8 shillings per fine ounce; the latter rate remained in effect until 9, 9, when it was raised to shillings three pence. Securities silver coin held as cover for fiduciary issue, the amount of which is also shown by this figure. Notes issued less amounts held in banking department. On Jan.,, 00 million pounds sterling of gold (at legal parity) transferred from Bank to Exchange Equalization Account; on Mar.,, about. million pounds (at current price) transferred from Exchange Account to Bank; on,, 0 million pounds transferred from Exchange Account to Bank; on Sept.,, 9 million pounds transferred from Bank to Exchange Account. Fiduciary issue increased by 0 million pounds on, 90, Apr. 0, Aug. 0, Dec., 9, Apr. 8, 9; by 0 million pounds on Dec., 9; by 0 million pounds on Apr., Oct., Dec. 8, 9, Mar., Aug., Dec., 9, on 8, 9. c Securities maturing in two years or less. Includes notes held by the chartered banks, which constitute an important part of their reserves. 8 Beginning November 9, includes a certain amount of sterling United States dollars. 9 On, 90, gold transferred to Foreign Exchange Control Board in return for short-term Government securities (see BULLETIN* for 90, pp. -8). NOTE. For back figures on Bank of Engl Bank of Canada, see Banking Monetary Statistics, Tables, pp. 8-0 pp. -, respectively; for description of statistics see pp. 0- in same publication. JANUARY 9 9

100 CENTRAL BANKS Continued Assets Liabilities Bank of France (Figures in millions of francs) Gold* Foreign exchange Open market Domestic bills Special Advances to Government. For occupation costs assets Note circulation Government Deposits liabilities Dec.. 90 Dec.. 9 Dec Dec Dec Dec Dec.. 9 Dec Dec Dec. 9. Dec Dec.. 9 Dec.. 9 Dec.. 9 Dec Dec. 8 9 Jan.. Feb.. Mar. 9. Apr... Aug. 0. Sept.. Oct..,8,8 8,8 8,0,098 8,,9 0,9 8,9 8, 9, 8, 8,98 8,98 8,98 8,98 8,98,,,,,,,,,,9,9,,8,8 9,8, ,,0,,80,,8,800,0,80,,,9.,,,,8,88,8,89 8,8 8, 8, 8,0 9, 0,08,9,9, , 8,9,89,8,9,9 9, 8, 0,0,880.9,,,8,,0,8 8,9,0,,0,9 0,,9, 0,,,0 0,9,9 09,00 09,00,000,000,000,000,000,000,000,000,000,98,909 0,,,900 9,00 8,0,00,00 0,80,80,00,0 0,900 9,0 8, 9,0,,,,00,0,, 8,98 0,09,9,,9,0,0,,,,90,09,,0,,, 8,, 8, 8,08 8, 8, 8,0 89, 9,8 0,9, 8,8 0, 8, 00,8,909 8,80,0, 8,900 80, 80,9 8,9 9, 9,8 8, , ,9 8 80,,98 0,9,00,80,8 0,,09,8,80,98,8 0,0,,9 8,, 9,,9,,0, 9,9,,,8,8 0,8,9 9,9,0, 0,00,,,8,,989,0,90.90,,,0,8,9,8,89,,8, ,8 9,0 90,0,00,0, Assets Liabilities Reichsbank (Figures in millions of reichsmarks) Reserves of gold foreign exchange reserves Gold Bills ( checks), including Treasurybills Security loans Eligible as note cover Securities assets Note circulation Deposits liabilities Dec.. 90 Dec.. 9 Dec.. 9 Dec.. 9 Dec Dec.. 9 Dec.. 9 Dec.. 9 Dec.. 98 Dec.. Dec Dec.. 9 Dec.. 9 Dec.. 9 Dec.. 9 Mar. Apr Aug. vsept. 0 Oct. Nov. 0 Dec Jan.. Feb ,8, ,88,,,80,,0,,0, 8,,9.9, 9,8, 0,9 0,909,9,0,,89 0,8,9,,9, 0, ,0, 8 8 8,,98,0,,,,8,,09,9,9,,0,,9,,08,9,0,8,,0,,90,8,980,9 8,,98,0 9,,,8,9,9,9,90,888 8,9,0,0,80 0,0,0, ,0,0,09,,08,,9,9 8,8,,9,0,,8,80 9,088 9,0 0,89,,,9 8,8, 8, ,09,8,9,9,80,980,88,8, ,,,,,909 Gold revalued March 90, November 98, 9, October 9. For further details see BULLETIN for 90, pp. 0-0; January, p. 9; September 9, p. 8; November 9, pp For explanation of this item, see BULLETIN for 90, p.. By a series of Conventions between the Bank of France the Treasury, dated from Aug., 90, through 0, 9, advances of,000 million francs were authorized to meet the costs of the German army of occupation. Central Administration of the Reichskreditkassen. & In each of the weeks ending Apr. 0 Aug.,,,000 million francs of gold transferred from Exchange Stabilization Fund to Bank of France; in week ending Mar., 90, 0,000 million in week ending Oct., 9, 0,000 million francs of gjld transferred from Bank of France to Stabilization Fund. First official statement published since liberation. Includes 9, million francs charged to the State to reimburse the Bank for the gold turned over by it to the National Bank of Belgium on Dec., 9. 8 Gold not shown separately in weekly Reichsbank statement after,. NOTE. For back figures on Bank of France Reichsbank, see Banking Monetary Statistics, Tables, pp. - pp. -, respectively; for description of statistics see pp. - in same publication. FEDERAL RESERVE BULLETIN

101 CENTRAL BANKS Continued Central Bank (Figures as of last report date of month) Nov. 9 Oct. Sept. Nov Central Bank (Figures as of last report date of month) 9 Nov. Oct. Sept. 9- Nov. Central Bank of the Argentine Republic (millions of pesos): Gold reported separately. gold foreign exchange. Government securities Rediscounted paper assets Note circulation Deposits Member bank Government Certificates of participation in Government securities liabilities Commonwealth Bank of Australia (thouss of pounds): Gold foreign exchange ("hecks bills of other banks.. Securities (incl. Government Treasury bills) assets Note circulation Deposits of Trading Banks: Special liabilities National Bank of Belgium (millions of francs): Gold-' Foreign exchange Loans to Government loans discounts Claim against Rank of Issue.... assets Note circulation Dem deposits Blocked Treasury account Notes blocked accounts.... liabilities Central Bank of Bolivia (millions of bolivianos): Gold at home abroad Foreign exchange Loans discounts Securities- Government assets Note circulation Deposits liabilities National Bank of Bulgaria- Central Bank of Chile (millions of pesos): Gold Discounts for member banks.... Loans to Government loans discounts ' assets Note circulation Deposits- Bank liabilities Bank of the Republic of Colombia (thouss of pesos): Gold Foreign exchange Loans discounts Government loans securities. assets Note circulation Deposits liabilities National Bank of Czechoslovakia in Prague (millions of koruny): Gold Foreign exchange Loans discounts assets Note circulation Old New Deposits liabilities ',,80,8,09.9,8., H.9,09,,.,80 8,8:, 8,80,9,8 8,0, , 8.9,8,00, ,, 0,0,09,.9,8,9,0 : ', ,9, , 9,88 9,0,.80,, 8,98,8. 9, ,0.,88 8,,, 0.,9,0.9 >.,0.98, ,00 8 0,00,9, 9 8 8,9 08,0,,9,, 8,8,0, 8 0,8 8, ,.,9 88 9,, ,98 0 9,,9 90 9,90 8,0,8,9,8 9,9,9 8,8, ,0,0,9,9 National Bank of Denmark (millions of kroner): Gold Foreign exchange Clearing accounts (net) Loans discounts Securities Govt. compensation account.. assets Note circulation: Deposits Government liabilities Central Bank of Ecuador (thouss of sucres): Gold Foreign exchange (net) Loans discounts assets Note circulation Dem deposits liabilities National Bank of Egypt 9 (thouss of pounds): Gold Foreign exchange Loans discounts British, Egyptian, other Government securities assets Note circulation Deposits- -Government liabilities Central Reserve Bank of El Salvador (thouss of colones): Gold Foreign exchange Loans discounts Government debt securities. I assets Note circulation Deposits liabilities Bank of Finl* Bank of Greece National Bank of Hungary (millions of pengd): Gold * Foreign exchange reserve Discounts Loans To Treasury To foreign countries assets Note circulation Dem deposits Consolidated foreign credits of 9 liabilities Reserve Bank of India (millions of rupees): Issue department: Gold at home abroad.. Sterling securities Indian Govt. securities Rupee coin Note circulation Banking department: Notes of issue department.. Balances abroad Treasury bills discounted.. Loans to Government assets Deposits liabilities Central Bank of Irel (thouss of pounds): Gold... Sterling funds Note circulation Bank of Japan Bank of Java' 9 0,9,,.89,8,.809, 9,9 8,00,0.90,.0,,,8,90,9 9,0,000 0,9 8 8,, ,9 9 0,9 9,088,,00, (Aug.)' 88,89 8,80,0,0, 8, 8,0 09,, 9,,0..,8 9,0, 8,,9 9,0,,0,0.0.,8,9 9,9,9 0, , ,89, 9, ,,0, ,,0,,8,,90 9,8,88,88 09,,. 8..0, ,00, ,0,08 0,, 0, 8, 8 9, 8,9 8, 0. 9.,8 Beginning Aug., 9, figures published in the balance sheet of the Commonwealth Bank cover central banking operations only, while previously these statements included the operations of the General Banking Division. - Gold revalued provisionally at 9.8 francs per gram. The resulting increment is held for the account of the Treasury is shown on the liabilities side under "Blocked Treasury account." In addition to the gold increment includes notes not presented for exchange forfeited to the State. Includes current accounts transferred to be transferred to blocked accounts old notes not declared. For last available report from the central bank of Bulgaria (January 9), see BULLETIN tor 9, p. 9; of Finl (August 9), see BULLETIN for April 9, p. 0; of Greece (March 9) Japan (September 9), see BULLETIN for March 9, p. 8; of Java (January 9). see BULLETIN for March 9, p. 8. e First statement available since liberation is that for. Until 9, known as the National Bank of Bohemia Moravia. Represents Bank's claim on the Government for the Bank's foreign exchange losses resulting from the revaluation of the krone on Jan., 9. 8 Latest month available. 9 Items for issue banking departments consolidated. JANUARY 9

102 CENTRAL BANKS Continued Central Bank (Figures as of last report date of month) Nov. Oct. Sept. 9 Nov. Central Bank (Figures as of last report date of month) Nov. 9 Oct. Sept. Nov. Bank of Mexico (millions of pesos): Metallic reserve "Authorized" holdings of securities, etc Bills discounts assets Note circulation Dem liabilities liabilities Netherls Bank (millions of guilders): Silver (including subsidiary coin) Foreign bills Discounts Loans assets Note circulation Old New Deposits Government Blocked liabilities Reserve Bank of New Zeal (thouss of pounds): Gold Sterling exchange reserve Advances to State or State undertakings Investments assets Note circulation Dem deposits. liabilities Bank of Norway Bank of Paraguay Monetary Dept. (thouss of guaranies): Gold Foreign exchange Loans discounts Government loans securities. assets Note circulation Dem deposits liabilities Central Reserve Bank of Peru (thouss of soles): Gold foreign exchange Discounts Government loans assets Note circulation Deposits abilities Bank of Portugal (millions of escudos): Gold* reserves (net) Nonreserve exchange Loans discounts Government debt assets Note circulation sight liabilities liabilities National Bank of Rumania South African Reserve Bank 8 (thouss of pounds): Gold Foreign bills bills loans assets Note circulation Deposits liabilities Bank of Spain (millions of pesetas): Gold Silver Government loans securities, loans discounts assets, 0,0, ,9,0,,09 8, ,,0=,0: 0,, 8,08,,80,0,909 08,, 88,,0 :,90,9,9,9 0,8 ', 0,0 8,80 0,80, 0,,0,0,0.9,,98, 0, 0,,,0 ()",0,8, 8,98,00, 9,8 (Aug.),<,8 9,0 8,00, 0,88 88, 8,0,8 0,88-,8 80.,,88 9,9,, Bank of Spain 80,8,98,0 8 9,8,00 ''"0 "',80,0,0,,9 8,,,,9 8,8?.,8 0,08 8,9 9,,, 9,089 0,0.' 8, 9,8 8 98, 0,0, 9.8,9 9,,9, 09,0,0,9 Continued Note circulation Deposits Government liabilities Bank of Sweden (millions of kroner) Gold Foreign assets (net) Swedish Govt. securities advances to National Debt Office 9 domestic bills advance^ assets Note circulation Dem deposits Government liabilities Swiss National Bank (millions of francs): Gold Foreign exchange Loans discounts assets Note circulation sight liabilities liabilities Central Bank of the Republic of Turkey (thouss of pounds): Gold Foreign exchange foreign clearings Loans discounts Securities assets Note circi#ation Deposits- -Gold liabilities Bank of the Republic of Uruguay (thouss of pesos): Issue department: Gold silver Note circulation Banking department: Gold silver Notes coin Advances to State to government bodies loans discounts.. assets Deposits liabilities Central Bank of Venezuela (thouss of bolivares): Gold 0 Foreign exchange (net) Credits to national banks assets Note circulation Central Bank. National banks- Deposits liabilities National Bank of the Kingdom of Yugoslavia Bank for International Settlements (thouss of Swiss gold francs): Gold in bars Cash on h on current account with banks Sight funds at interest Rediscountable bills acceptances (at cost) Time funds at interest Sundry bills investments.. assets Dem deposits (gold) Short-term deposits (various currencies): Central banks for own account Long-term deposits: Special accounts liabilities,0 8,., , ,,09 98,90,,0,09 0,8 0,,,8,0 8, '/ , ,9 9,9,9,8,08 9, , 9,,,0 98,0, 8.8 8,8 0.,00 9,9 8,8 8,0,89,(,8,8 0,89, 9, 8,8 8,8,,9 9,9 8,9, ,9.,0,,89,8 8,0 8,89 0,0, 80 9, , ,89,9 8,0 8,8,0,,09, ,,8 8,8 8,,0 9,0,98,,0,98,,9 88,0,,09,8 8 8,0 9 9,,8 88,08 8,,,09 9,08 8.8, 8,89,,,,908 9,,00 8,0 8,9 9, 9,9,9 9,0 9,08 8,9 8,89 09,,.0,0.0 8,8 8,98 0,0,0,0,8,9,98 00, 0,,,98 9,00 9,00 9,00 0, 0,,9 Includes gold, silver, foreign exchange forming required reserve ( per cent) against notes other dem liabilities. - Gold revalued in 9 from,098 to,90 guilders per fine kilogram. Notes issued before October 9 were gradually withdrawn from circulation deposited in "blocked" accounts in accordance with the currency reform decrees effected between October 9. For last available reports from the central banks of Norway (March 90) Yugoslavia (February 9), see BULLETIN for March 9, p. 8; of Rumania ( 9), see BULLETIN for March 9, p. 8. The Bank of the Republic of Paraguay was reorganized in September 9 under the name of Bank of Paraguay. The new institution is divided into a Monetary, a Banking, a Mortgage Department. The first official balance sheet of the Monetary Department, which assumes central banking functions, was issued for the end.of December 9. Latest month available. Valued at average cost beginning October 90 s Beginning 9, end-of-month statements have been available. 9 Includes small amount of non-government bonds. 0 Beginning October 9, a certain amount of gold, formerly reported in the Bank's account, shown separately for account of the Government. u See BULLETIN for December 9, p FEDERAL RESERVE BULLETIN

103 MONEY RATES IN FOREIGN COUNTRIES DISCOUNT RATES OF CENTRAL BANKS [Per cent per annum] Date effective France Central bank of United Kingdom Germany Belgium Netherls Sweden Switzerl Central bank of Rate Dec. Date effective Central bank of Rate Dec. Date * effective In effect Dec., 9 Jan. 8, 9... Aug. Sept. Nov. 0, Sept. 8 Oct. Nov. Jan.,... Apr Mav Aug. Aug 9 Sept. 8 Oct. Dec. Jan., Apr. 9 Mar., Jan., 9... Jan. 0 Feb. 9 In effect Dec., 9 X A V P " " " > "\y " ")" V Y Y z..!*.. Albania Argentina Belgium Bolivia British India.. Bulgaria Canada Chile Colombia Czechoslovakia Denmark Ecuador El Salvador... Estonia Finl France Germany Greece Hungary Irel Nov. 8, 9 Dec., 90 V Feb. 8, 9 Dec., 9 8, 9 Oct. 8, 9 0 V Mar., 90 Mar., 9 Jan., 9 Nov. 8, 90 Oct., 90, 98 Mar. 0, Oct., 9 Dec., 9 Jan. 0, 9 Apr. 9, 90 Apr. 0, 9 Oct., 90 Nov., 9 NOTE. Changes since Nov. 0: none. Italy Japan Java Latvia Lithuania.... Mexico Netherls. New Zeal. Norway Peru Portugal Rumania.... South Africa. Spain Sweden Switzerl.. Turkey United Kingdom U. S. S. R... Yugoslavia...9 V VA Sept., 9 Apr., 9 Jan., 9 Feb., 90,, 9, 9, 9, 90 Aug., 90 Jan., 9 8, 9, 9 Dec., 98 Feb. 9, 9 Nov., 9, 98 Oct.,, 9 Feb., 9 OPEN-MARKET RATES [Per cent per annum] United Kingdom Germany Netherls Sweden Switzerl Month Bankers' acceptances months Treasury bills months Day-to-day money Bankers' allowance on deposits Private discount rate Day-today money Private discount rate Money for month Loans up to months Private discount rate Oct.. 90 Oct.. 9 Oct. 9 Oct.. 9 Oct.. 9 Oct.. 9 Oct.. 9 Oct.. 9 Oct.. 98 Oct.. Oct.. 90 Oct.. 9 Oct.. 9 Oct.. 9 Oct.. 9 Oct Nov. Dec. 9 Jan.. Feb.. Mar. Apr... Aug. Sept. Oct NOTE. For monthly figures on money rates in these other foreign countries through 9, see Banking Monetary Statistics, Table, pp. -, for description of statistics see pp. - in same publication. JANUARY 9 0

104 COMMERCIAL BANKS United Kingdom * Assets Liabilities ( London clearing banks. Figures in millions of pounds sterling) Cash reserves Money at call short notice Bills discounted Treasury deposit receipts Securities Loans to customers assets Deposits Dem Time liabilities 98 December. December. 90 December. 9 December. 9 December. 9 December. 9 November. December. 9 January... February.. March... April August.... September. October " ,0,8,,, 9,8,8,88,,,,9,9 09 9,0,,9,,,0,,0 8,8 9, ,,,800,9,9,0,98,,,0,9,,,,89,8,898,89,,98,0,8,9,,9,0,98,90,9,,0,,0,,,,0,00,,00,9,,00,9,0,,0,,0,,8,, Liabilities Canada (0 chartered banks. End of month figures in millions of Canadian dollars) Cash reserves Entirely in Canada Security loans loans discounts Security loans abroad net due from foreign banks Securities assets circulation Deposits payable in Canada excluding interbank deposits Dem Time liabilities 98 December. J December. 90 December. 9 December. 9 December. 9 December. 9 November. December. 9 January... February.. March April August September October ,088,08,9,8,,,,,,09,0,,,09,0,00,00<> ,,,,9,9,90,,,,,0,,88,,80,8,90, ,00,,80,0,,9,,,09,0,98,0,,0,9,9,9, 80,0,,,98,,8,,90,,,0,89,8,9,,8,0,,,9, ; 98,,,,,,,,8,9, ,09,,,89,8,8,80,0,,,,,,9 France ( large banks. End of month figures in millions of francs) Cash reserves Due from banks Assets Bills discounted Loans assets Deposits Dem Liabilities Time Own acceptances liabilities 98 December. December. 90 December. 9 December 9 December. 9 October.. November December 9 January.. February. March... April August...,,,8,89,80 0 8,8,0,,, 8,09 0, 0, 0,,00,,8,,8,8,90,09,,,00,000,0,09,90,9, 9,,,89,9 88,89 8, 90,89 90*0 9,8 9,8 9, 9, 9, 0,9 00,8,9, 8, 8,80 0,,,,9,,9,8,8,,8,8,,90,0,9,0,,8,,9,,8,,8,0,08,,,8,,0, 9,9,0,8,0, 9, 08,8 0,00 0,00 0,8,,9 0,8,8,8 8,0 0,,9,0,0 08,88,,9,9 8,0 0,0,9, 9,8,90,,0,8,8,9,00,08,, ,8,09,8,8,,8',,0,8,0,,0,,80,000,0 Through August, averages of weekly figures; beginning September, end-of-month figures, representing aggregates of figures reported by individual banks for days, varying from bank to bank, toward the end of the month. Represent six-month loans to the Treasury at % per cent, through Oct. 0, 9, at ^ per cent thereafter. NOTE. For back figures figures on German commercial banks, see Banking Monetary.Statistics, Table 8, pp. 8-, for description*of statistics see pp. - in same publication. 0 FEDERAL RESERVE BULLETIN

105 Year or month FOREIGN EXCHANGE RATES (Averages of certified noon buying rates in New York for ca Ac transfers. In rents p( j r unit 0 foreign currene> Argentina (PCso) Official Special Export Australia (pound) Official Free Belgium (franc) Brazil (cruzeiro ) Official Free British India (rupee) Bulgaria (lev) Official Canada (dollar) Free Official Chile (peso) Export China Shanghai) (yuan Dec!9 j an. Feb Mar. Apr Mav Aug Sept Oct Nov ? " r " " " T " " " " " " 0 0.??.??. ~>.?..?...80 T?? 80? 80.80? 80.80? 80.80? ? ? ? ? ^ ? ? 0. 0? 0. 0? ? > 0J Year or month Colombia (peso) Czechoslovakia (koruna) Denmark (krone) Finl (markka) France (franc) Germany (reichsmark) Greece (drachma) Hong Kong (dollar) Hungary (pengo) Italy (lira) Japan (yen) Mexico (peso) Netherls (guilder) New Zeal (pound) : Dec 9--Jan.. Feb Alar..... Julv Aug Sept Oct Nov, ? " A ( ? ? Year or month Norway (krone) Pol (zloty) Portugal (escudo) Rumania (leu) South Africa (pound) Spain (peseta) Straits Settlements (dollar) Sweden (krona) Switzerlanc (franc) Uni ted King dom (poiind) Official Free Uruj (pe so) trolled Noncontrolled Yugoslavia (dinar) Dec 9 Jan Feb Mar.. Apr - Aug.. Sept Oct Nov 80? S ' ? () ( ? ?? Prior to Nov., 9, the official designation of the Brazilian currency unit was the "milreis." Average of daily rates for that part of the year during which quotations were certified. Based on quotations beginning Sept.. Based on quotations beginning Nov.. NOTE. For back figures, see Banking Monetary Statistics, Table, pp. -8. _ For description of statistics see pp. - in same publication, for further information concerning developments affecting the averages during 9 9 see BULLETIN' for February 9, p. 0, February 9, p. 09. JANUARY 9 0

106 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES ALL COMMODITIES [Index numbers] Year or month United States (9 = 00) Canada (9 = 00) United Kingdom (90 = 00) France (9 = 00) Germany (9 = 00) Italy (98 = 00) Japan (October 900 = 00) Netherls (9-0 = 00) Sweden (9 = 00) Switzerl ( 9 = 00) i i 9 i 90 i November December 9 January February March April August September October November P P Preliminary. Approximate figure, derived from old index (9=00). Average based on figures for months; no data available since 90, wnen figure was.»average based on figures for months; no data available since 90, when figure was 89. Sources. See BULLETIN for January 9, p. 8; April 9, p. ; March 9, p. ; October 9, p. 8. WHOLESALE PRICES GROUPS OF COMMODITIES [Indexes for groups included in total index above] United States (9 = 00) Canada 9 = 00 United Kingdom (90=00) Germany (9 =00^ Year or month Farm products Foods commodities Farm products Raw partly manufactured goods Fully chiefly manufactured goods Foods Industrial products Agricultural products Industrial raw semifinished products Industrial finished products November December 9 January February March April Julv August September October November Sources. See BULLETIN for 9, p. ; March 9, p. 80; March 9, p FEDERAL RESERVE BULLETIN

107 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES Continued RETAIL FOOD PRICES COST OF LIVING [Index numbers] [Index numbers! Year or month United Canada States (9-9 (9-9 = 00) = 00) United Kingdom ( 9 = 00) Germanv (9- = 00) Netherls (9- = 00) Switzerl ( 9 = 00) Year or month United Canada States (9-9 (9-9 = 00) = 00) United Kingdom ( 9 = 00) Germany (9- = 00) Netherls (9- = 00) Switzerl ( 9 = 00) November. December.. 9 January... February.. March April August... September. October November Pi November. December.. 9 January... February March April August... September. October November » P Preliminary. Revised index from March 9 (see BULLETIN for April 9, p. ). Average based on figures for months; no data available since March 90, when figure was. Average based on figures for months; no data available since 90, when figure was 9. Sources. See BULLETIN for 9, p. ; October, p. 9; April 9, p.. SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks Year or month United States (derived price) United Kingdom (December 9 =00) France (98 = 00) Germany (average price) Netherls United States (9-9 = 00) United Kingdom (9 = 00) Germany France (98 = 00) Netherls (90=00) Number of issues ( ) «.» e November December 9 January February March April August September October November P0. P0.9 PO. P P P P P v Preliminary. Figures represent calculated prices of a per cent 0-year bond offering a yield equal to the monthly average yield for high-grade corporate bonds. Source. Stard Poor's Corporation; for compilations of back figures on prices of both bonds common stocks in the United States see Banking Monetary Statistics, Table 0, p., Table, p. 9. Published by the Ministry of National Economy with new base of 98 =00. Figures are for the last Friday of each month. The number of bonds included in the new index was increased to 0 (formerly ), while the number of stocks remained the same. For complete information on the composition of the bond stock indexes see "Bulletin de la Statistique Generale" December 9, pp. -, -August 9, pp. -, respectively. For back figures for both indexes from 98 through 9 on a monthly basis see "Bulletin de la Statistique Generale" for October-December 9, pp. -. Since Apr., 9, the 9 bonds included in the calculation of the average price have all borne interest at K per cent. The series prior to that date is not comparable to the present series, principally because the 9 bonds then included in the calculation bore interest at per cent. Indexes of reciprocals of average yields. For old index, -9, =00; average yield in base year was. per cent. For new index beginning January 9, Jan.-Mar. 9 =00; average yield in base period was.9 per cent. This number, originally 9, has declined as the number of securities eligible for the index has diminished. In 9 it was down to 8. Average based on figures for months; no data available -Dec. Average based on figures for months; no data available -Sept. 8 Average based on figures for 9 months; no data available -. Average based on figures for 0 months; no data available Jan.-Feb. Sources. See BULLETIN for November 9, p. ; 9, p. 98; April 9, p. ; 9, p. 9; February 9, p.. JANUARY 9 0