22981_1920-1924

JANUARY, 1920. FEDERAL RESERVE BULLETIN. 63

Branch at Oklahoma City.

The Federal Reserve Board on December 17authorized and directed the Federal ReserveBank of Kansas City to establish a branchoffice at Oklahoma City in order to expediteshipments of currency to and from memberbanks in the State of Oklahoma and to providebetter facilities for intrastate clearing of checks.

The Board has recommended to the FederalReserve Bank of Kansas City that the by-lawsassign as territory for the Oklahoma Citybranch that portion of the State of Oklahomawhich is not included in the eleventh FederalReserve district. An outline of the powers andfunctions to be exercised by the branch asrecommended by the Board is as follows: Thebranch bank will receive deposits from memberbanks but will carry no deposit accounts. Allamounts received on deposit will be transmitteddaily, by telegraph or otherwise, to the FederalReserve Bank of Kansas City for credit to theaccounts of the depositing banks, and eachmember bank in the territory assigned to thebranch, wherever located, may, at its option,make remittances of currency and cnecksdirect to the Federal Reserve Bank of KansasCity. The branch will carry no Governmentdeposits, but will redeem Treasury certificates,pay Government checks, and will close outbalances daily with the head office. The branchwill carry no earning assets; applications forloans or discounts from member banks andoffers for sale of mail transfers, bankers7 accept-ances, and bills of exchange eligible for purchaseby Federal Reserve Banks will be transmittedto the Federal Reserve Bank of Kansas City forfinal action. Immediate credit, however, maybe given in cases where it becomes necessaryfor member banks to rediscount in order tomeet clearing-house debit balances, unexpecteddeficiencies in reserves, and any other casewhere quick arrangements are necessary, allactual rediscounting operations, however, to bemade at the head office, interest being chargedfrom the date the notes were received by thebranch. In cases where notes are secured byUnited States obligations, the branch may, byauthority of the Federal Reserve Bank ofKansas City, hold the collateral and forwardthe notes to the parent bank with trust receiptsshowing the amount and nature of collateralheld. Banks in the branch bank territory maydeal directly with the parent bank. The prin-cipal functions to be exercised by the branchwill be the clearing and collection of checks andthe handling of shipments of currency to andfrom member banks in its territory. This plan

i s the same as the one which governs theoperations of the branch banks at Cincinnati,Pittsburg, Buffalo, and other cities.

Foreign Branches.

A list of branches of national banks andinternational and foreign banks, doing businessunder agreement with the Federal ReserveBoard, which have opened for business duringDecember, is given below:

National City Bank of New York:Brussels, Belgium.

Mercantile Bank of the Americas, New York Oity:Affiliated Institution: Banco Mercantil Americane

de Caracas, Venezuela—Maracaibo, Venezuela.

Commercial Failures Reported*

While commercial failures in the UnitedStates do not now disclose the markednumercial reduction from 1918 that featuredthe returns of earlier months this year, yet the400 defaults reported to R. G. Dun & Co.during three weeks of December comparefavorably with the 498 insolvencies of thesame period last year. The statement forNovember, the latest month for which completefigures are available, shows 551 business re-verses, involving $9,177,321 of liabilities, thenumber being the largest of any month backto last March, and the indebtedness heavierthan in October, September, August, and Julyof the current year. Yet not in any previousNovember since monthly statistics were firstcompiled in 1894 have failures been so few innumber as in the present instance, the nextbest exhibit for the month being the 570defaults of November, 1918, and last month'sliabilities are the smallest for November in adecade and a half.

Failures during November.

Districts.

FirstSecondThirdFourthFifthSixthSeventh....EighthNinthTenthEleventh...Twelfth

Total.

Number.

1919 1918

551

61992958263474286222886

50101365525221014015173276

570

Liabilities.

1919

$535,6091,548,918589,611

4,071,586132,640301,065434,048235,393108,176204,082253,516762,677

9,177,321

1918

$795,9561,674,791987,779770,106364,083

2,742,1834,837,148494,10481,276198,531293,019576,190

13,815,166

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

January 1920

160 FEDEBAL RESERVE BULLETIN. FEBRUARY, 1920.

New National Bank Charters.

The Comptroller of the Currency reportsthe following increases and reductions in thenumber and capital of national banks duringthe period from December 27, 1919, to Jan-uary 30, 1920, inclusive:

Banks.New charters issued to 31With capital of $1,840,000Increase of capital approved for 103With new capital of. 15,480,000Aggregate number of new charters and

banks increasing capital 134With aggregate of new capital authorized 17,320,000Number of banks liquidating (other than

those consolidating with other nationalbanks under the act of June 3, 1864) 10

Capital of same banks 500,000Number of banks reducing capital 0Reduction of capital 0Total number of banks going into liquida-

tion or reducing capital (other than thoseconsolidating with other national banksunder the act of June 3, 1864) 10

Aggregate capital reduction 500,000Consolidation of national banks under the

act of Nov. 7, 1918 2Capital 800,000The foregoing statement shows the aggre-

gate of increased capital for the period ofthe banks embraced in statement was 17,320,000

Against this there was a reduction of capitalowing to liquidation (other than for con-solidation with other national banks un-der the act of June 3, 1864) and reduc-tions of capital of 500,000

Net increases 16,820,000

Commercial Failures Reported.

Commercial defaults numbering 399 in theUnited States during three weeks of January,as reported to R. G. Dun & Co., contrast with492 in the corresponding period last year, orpractically a 19 per cent reduction. The re-turns for December, 1919, the latest month forwhich complete statistics are available, dis-close 581 business reverses, with liabilities of$8,300,342, which, as to number, is a less re-markably favorable showing than was madeby most months of 1919, but betters by a con-siderable margin the record of any previousDecember since monthly statements were com-piled in 1894. The December indebtedness,while larger than in October, August, and Julyof last year, is the smallest ever reported forDecember. Comparing with the 683 insolven-cies for $12,249,483 of December, 1918, de-creases of 14.9 per cent in number and 32.2 percent in liabilities are shown, and fewer de-faults than last year appear in the first, second,

seventh, eighth, ninth, tenth, eleventh, andtwelfth Federal reserve districts, while in thefourth district there is no change.

Failures during December.

Number.

District.

Liabilities.

FirstSecond—ThirdFourth. . . .FifthSixthSeventh...Eighth. . . .NinthTenthEleventh..Twelfth...

Total..

1919

7111944494543 i48 |22 i15 I23 !16 !

1918 | 1919

129274939299336302933101

$1,949,5191,849,643445,629513,580581,176701,224506,102554,848207,178218,959186,817585,667

581 j 683 I 8,300,342

1918

749,269805,610433,208045,883662,400284,320317,234173,388276,666483,042191,850826 618

12,249,483

Failures in the United States during 1919.TOTAL COMMERCIAL.

District.

FirstSecond..Third....Fourth..Fif th . . . .Sixth. . . .Seventh.Eighth. .Nin th . . .Tenth . . .EleventhTwelfth..

Total. .

191819171916

1919

Num-ber.

7441,185360587355455770359149271322894

6,451

9,98213,85516,993

$5,423,71214,539,3443,308,926

11,986,4364,090,6834,709,7517,326,1212,924,680

725,7012,571,3862,302,7237,128,380

67,037,843

101,637,798103,464,805113,599,026

Liabilities.

$11,884,23832,413,5386,863,575

13,329,2575,605,8325,928,220

12,717,6284,021,8611,223,9523,287,8553.884,398

12,130,883

113,291,237

1^63,019,979182,441,371196,212,256

1918

Num-ber.

1,2851,785536858447521

1,607487382419423

1,232

Liabilities.

$18,963,08144,460,85614,543,65712,413,3404,896,9608,143,433

24,536 1154,672,8613,497,2797,417 4634,699,007

14,775,927

163,019,979

Districts.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenthEleventhTwelfth

Total1918. .19171916.

CLASSIFIED

Manufacturing.

No.

2704551111687175

24758325824

296

1,8652 766

Liabilities.

$4,313,31414,639,8482,832,2428,653,2202,423,1192,395,5036,683,0501,239,001

281,5221,380.303

504,1536,268,941

51,614,21672 279 fiJtt

FAILURES, 1919.

Trading.

No.

400596222358252355467261102191280529

4,013

3,691 j 79,543,507 1 9*4304 196 79, QQQ KRft 11 Q93

Liabilities.

$4,564,8546,988,0652,453,6492,889,4952,422,8543,146,4294,065,6011,874,280

748,6241,670,4702,809,7044,036,418

37,670,44357,921,75770,116,66991,373,828

Other commer-cial.

No.

7413427613225564015221869

573722734874

Liabilities.

$3,006,07010,785,6251,577,6841,786,542

759,859386,288

1,968,977908,580193,806237,082570,541

1,825,524

24,006,57831,725,56932,781,19531,838,848


February 1920

274 FEDERAL RESERVE BULLETIN. MARCH, 1920.

WITHDRAWAL.

The Pierce Trust & Savings Bank, Sycamore, 111., has withdrawnfrom membership.

CONVERSION.

The Illinois State Bank, East St. Louis, 111., has converted into theFirst National Bank in East St. Louis.

CHANGE OF NAME.

The Dime Deposit Bank, Wilkes-Barre, Pa., has changed its nameto "Dime Bank Title & Trust Co."


The Comptroller of the Currency reportsthe following increases and reductions in thenumber and capital of national banks duringthe period from January 31 to February 27,1920, inclusive:

Banks.New charters issued to 33With capital of $1,815,000Increase of capital approved for 55With new capital of , . 6,545,000Aggregate number of new charters and

banks increasing capital 88With aggregate of new capital authorized 8,360,000Number of banks liquidating (other than

those consolidating with other nationalbanks under the act of June 3, 1864)... 7

Capital of same banks 425,000Number of banks reducing capital 0Reduction of capital 0Total number of banks going into liquida-


Aggregate capital reduction 425,000Consolidation of national banks under the

act of Nov. 7, 1918 2Capital 1,190,000The foregoing statement shows the aggre-

gate of increased capital for the period ofthe banks embraced in statement w a s . . . . . 8,360,000

Against this there was a reduction of capi-tal owing to liquidation (other than forconsolidation with other national banksunder the act of June 3, 1864), andreductions of capital of 425,000

Net increases 7,935,000


Notwithstanding the fact that the coun-try's business mortality at this period lastyear was relatively moderate, this year'sinsolvency returns disclose continued reduc-tion, commercial failures reported to K. 6.Dun & Co. during three weeks of Februarynumbering 367, against 446 in the sameweeks of 1919. Moreover, the statement forJanuary, the latest month for which completefigures are available, reveals only 569 defaultsfor $7,240,032 of liabilities, as contrastedwith 673 reverses, involving $10,736,398 inJanuary, 1919. Comparing with the 2,848

reverses of January, 1915, the high point forthe month, a numerical decrease of 80 percent appears. Separated according to Fed-eral Reserve districts, the January statisticsshow more failures than last year in the first,third, fifth, tenth, and twelfth districts, butthe increases are slight, and are more thanoffset by the declines in the seven other dis-tricts. An even more favorable exhibit ismade by the January liabilities, which aresmaller than those of that month of 1919 inevery Federal Reserve district except theseventh, tenth, and twelfth districts.

Failures during January.

Districts.

FirstSecondThirdFourthFifthSixthSeventh..EighthNinth. . . .TenthEleventhTwelfth

Total

Number.

1920

7410339393537573415323371

569

1919

6613435583443746025264870

673

Liabilities.

1920

$632,8141,212,644

828,805327,743284,943235,357

1,179,910168,764132,265367 433284,096

1,585,258

7,240,032

1919

$850,3453,258,200

976 4641,103,950

617,155376,517988,347654,396203,589320 331695,082692,022

10,736,398

Fiduciary Powers Granted to National Banks.

The applications of the following banks forpermission to act under section 11-k of theFederal Reserve Act have been approved bythe Federal Reserve Board during the monthof February, 1920.

DISTRICT No. 2.

Trustee, executor, administrator, registrar of stocks andbonds, guardian of estates, assignee, receiver, and com-mittee of estates of lunatics:

City National Bank, Perth Amboy, N. J.Farmers National Bank, Adams, N. Y.National Bank of Fredonia, Fredonia, N. Y.Lackawanna National Bank, Lackawanna, N. Y.Second National Bank, Oswego, N. Y.

DISTRICT NO. 4.

Trustee, executor, administrator, registrar of stocks andbonds, guardian of estates, assignee, receiver, andcommittee of estates of lunatics:

First National Bank, Pittsburgh, Pa.Trustee, executor, administrator, registrar of stocks and

bonds, guardian of estates, receiver, and committee ofestates of lunatics:

Traders National Bank, Mt. Sterling, Ky.Newport National Bank, Newport, Ky.

Trustee, executor, administrator, registrar of stocks andbonds, guardian of estates, assignee, and receiver:

Bank of Athens, N. B. A., Athens, Ohio.National Bank of Commerce, Lorain, Ohio.


March 1920

384 FEDERAL, RESERVE BULLETIN. APRIL, 1920.

Commercial Failures Reported.Although the margin of decrease is narrow-

ing commercial failures in the United Statescontinue to disclose reduction from the rela-tively light mortality of 1919, the 368 defaultsreported to R. G. Dun & Co. during threeweeks of March contrasting with 435 in thesame period of last year. The returns for Febru-ary, the latest month for which complete sta-tistics are available, show 492 insolvenciesfor $9,763,142 of liabilities, against 602 for$11,489,183 in February, 1919. The statementfor February, this year, is the best, in point ofnumber, of any February of which there isrecord, and it is necessary to go back to 1899to find a smaller indebtedness for the period.Separated according to Federal reserve dis-tricts, the February report reveals fewer failuresthan in that month of 1919 in 8 of the 12districts, the exceptions being the fourth, fifth,ninth, and tenth districts, and increases inliabilities in the fifth, ninth, tenth, and eleventhdistricts are more than offset by declines in theremaining eight districts.

Failures during February.

Districts.


Total

Number.

1920

427523484041662815293154

492

1919

6410237402746873610284184

602

Liabilities.

1920 1919

$557,2831,062,322

361,236697,775

1,335,730381,891

1,876,499340,110195,198484,025

1,830,522640,551

9,763,142

$933,9612,686,546

447,770845,343381,910623,881

2,802,884424,740118,400265,103930,894

1,027,751

11,489,183


The applications of the following banks forpermission to act under section 11-k of theFederal Reserve Act have been approved bythe Federal Reserve Board during the monthof March, 1920:

DISTRICT NO. 2.


Highland National Bank, Newburgh, N. Y.New York National Irving Bank, New York City.

DISTRICT NO. 3.


Citizens National Bank, Towanda, Pa.Lancaster County National Bank, Lancaster, Pa.First National Bank, York, Pa.

DISTRICT No. 4.


Kent National Bank, Kent, Ohio.

DISTRICT No. 5.


Citizens National Bank, Pocomoke City, Md.Boston National Bank, South Boston, Va.Union National Bank, Charlotte, N. C.The Old National Bank of Martinsburg, W. Va.

DISTRICT NO. 6.


First National Bank, West Palm Beach, Fla.

DISTRICT NO. 7.

Trustee, executor, administrator, registrar of stocks andbonds, guardian of estates, assignee and receiver:

Hackley National Bank, Muskegon, Mich.Trustee, executor, administrator, registrar of stocks and

bonds, guardian of estates, assignee, receiver, and com-mittee of estates of lunatics:

Rockwell City National Bank, Rockwell City, Iowa.Second National Bank, Danville, 111.First National Bank, Aurora, 111.First National Bank, Swayzee, Ind.Grand Rapids National City Bank, GrandJRapids,

Mich.Guardian of estates, assignee, receiver, and committee of

estates of lunatics:Riddell National Bank, Brazil, Ind.

DISTRICT No. 8.Guardian of estates, assignee, receiver, and committee of

estates of lunatics:First National Bank, Pittsfield, III.

DISTRICT No. 9.

Trustee, executor, and administrator:First National Bank, Lanesboro, Minn.

DISTRICT NO. 10.


Montrose National Bank, Montrose, Colo.Logan County National Bank, Sterling, Colo.First National Bank, Telluride, Colo.Citizens National Bank, Emporia, Kans.First National Bank, Oklahoma City, Okla.First National Bank, Las Vegas, N. Mex.

DISTRICT NO. 11.


National Bank of Commerce, San Antonio, Tex.Merchants & Planters National Bank, Sherman, Tex.

DISTRICT NO. 12.

Trustee, executor, administrator, registrar of stocks andbonds, guardian of estates, assignee, receiver and com-mittee of estates of lunatics:

Citizens National Bank, Port Angeles, Wash.Fidelity National Bank, Spokane, Wash.


April 1920

MAY, 1920. FEDERAL, RESERVE BULLETIN. 493

Commercial Failures Reported.While a tendency toward increase in number of failures

is beginning to appear in certain parts of the country, yetonly 353 commercial defaults were reported to R. G" Dun& Co. during three weeks of April, against 419 in the sameperiod of 19i9, when the business mortality was relativelymoderate. The statement for March, the latest month forwhich complete returns are available, discloses 5G6 in-solvencies for $12,699,325 of liabilities, as compared with029 reverses for $13,595,471 in March, last year, the numeri-cal showing being the best of any March of which there isrecord, and the indebtedness the smallest for the periodsince 1907. When the March returns are separated ac-cording to Federal Reserve districts, more failures than inthat month of 1919 are revealed in the second, third,fourth, ninth, and eleventh districts, but these increasesare offset by reductions in the first, sixth, seventh, tenth,and twelfth districts. In the fifth and eighth districts nochange is shown. As to the liabilities, the amounts aresmaller in the first, third, fourth, sixth, tenth, eleventh,and twelfth districts.

Failures during March.

Districts.

FirstSecond....ThirdFourth... .FifthSixthSeventh...Eighth.. . .NinthTenthEleventh.,twelfth...

Number. Liabilities.

1920 1919 j 1920 1919

5413933633634643118.111964

10110222513652863113301788

I

$866,304 j6,213,228 I

644,375 I553,082 !464,017 |382,988 i

1,420,313 !

524,242 i209,558 !42,557 :

203,445 '1,175,216 '

SI, 689,6234,033,008

769,9321,170,267

457,495679,250

1,351,560368,63956,947

582,871252,971

2,182,908

Total.. 566 I 629 : 12,699,325 j 13,595,471

Fiduciary Powers Granted to National Banks.The applications of the following banks for

permission to act under section 11-k of theFederal Reserve Act have been approved by thoFederal Reserve Board during the month ofApril, 1920:

DISTRICT NO. 1.


Thames National Bank, Norwich, Conn.First National Bank of Yarmouth, Yarmouthport,

Mass.DISTRICT NO. 3.


First National Bank, Ambler, Pa.Farmers & Merchants National Bank, Tyrone, Pa.

Trustee, executor, administrator, registrar of stocks andbonds, and guardian of estates:

New Holland National Bank, New Holland, Pa.

DISTRICT NO. 4,


Farmers & Producers National Bank, Sistorsville,


Northern National Bank, Cleveland, Ohio.

DISTRICT NO. 5.

Guardian of estates, assignee, receiver, and committee ofestates of lunatics:

National Valley Bank, Staunton, Va.

DISTRICT No. 6.


Atlanta National Bank, Atlanta, Ga.National Bank of Brunswick, Brunswick, Ga.

Trustee, executor, administrator, registrar of stocks andbonds, assignee, and receiver:

First National Bank, Fitzgerald, Ga.Guardian of estates, assignee, receiver, and committee of

estates of lunatics:First National Bank, Anniston, Ala.Bessemer National Bank, Bessemer, Ala.

DISTRICT NO. 7.


Farmers National Bank, Cambridge, 111.Live Stock Exchange National Bank, Chicago, 111.Clark National Bank, Newton, Iowa.Sioux National Bank, Sioux City, Iowa.First National Bank, Kalamazoo, Mich.

DISTRICT NO. 8.


National Bank of Sullivan, Sullivan, Ind.Trustee, executor, administrator, registrar of stocks and

bonds, guardian of estates, assignee, receiver and com-mittee of estates of lunatics:

Cairo National Bank, Cairo, 111.

DISTRICT NO. 10.


Colorado Springs National Bank, Colorado Springs,Colo.

Stock Yards National Bank, Denver, Colo.First National Bank, Wichita, Kans.Continental National Bank of Jackson County, Kansas

City, Mo.Trustee, executor, administrator, registrar of stocks and

bonds, guardian of estates, assignee, and receiver:National Bank of Commerce, Casper, Wyo.

DISTRICT NO. 12.

Guardian oi estates, assignee, receiver, and committee ofestates of lunatics:

National City Bank, Seattle, Wash.Trustee, executor, administrator, registrar of stocks and

bonds, guardian of estates, assignee, receiver, and com-mittee of estates of lunatics:

First National Bank, Toppenish, Wash.First National Bank of Hawaii, Honolulu, Hawaii.


May 1920

JUNE, 1920. FEDERAL RESERVE BULLETIN. 609


Continued narrowing of the margin of reduction in num-ber of failures from last year's mortality appears in thelatest statistics, and the 372 commercial defaults reportedto R. G. Dun & Co. during three weeks of May make aclose comparison with the 381 reverses of the correspondingweeks of 19]9. The statement for April, the most recentmonth for which complete returns are available, discloses504 insolvencies, or 39 less than in that month last year,which marked the lowest monthly record up to thatperiod, but the April liabilities of $13,224,135 considerablyexceed the $11,450,462 of the same month of 1919. Sepa-rated according to Federal Reserve districts, the Aprilexhibit shows numerical decreases in eight of the twelvedistricts, the exceptions being the second, sixth, tenth,and twelfth districts, while the indebtedness is smallerthan that of April, 1919, in the second, third, fourth, fifth,sixth, eighth, and eleventh districts. These reductions,however, are more than offset by the larger totals elsewhere,the increase in the seventh district being marked.

Failures during April.

Districts.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenthJEleventhTwelfth

Total

Number.

1920

51117243614363914163216

109

504

1919

6310728412729614423202476

543

Liabilities.

1920

$982,3202,865,153

278,334352,94688,450

361,8334,551,640

200,207681.330628,450100,582

2,132,890

13,224,135

1919

$707,7834,365,253

333,089653,738660,750475,441

1,248,110447,162142,857104,545226,206

2,085,528

11,450,462

New National Bank Charters.The Comptroller of the Currency reports the

following increases and reductions in the num-ber and capital of national banks during theperiod from May 1 to May 28, 1920, inclusive:

Banks.New charters issued to 47With capital of $3, 780, 000Increase of capital approved forl 48With new capital oi1 4, 014; 000Aggregate number of new charters and

banks increasing capital 95With aggregate of new capital authorized 5, 794,000Number of banks liquidating (other than


Capital of same banks 25, 000Number of banks reducing capital 0Reduction of capital2 25,000Total number of banks going into liquida-

tion or reducing capital (other than thoseconsolidating with other national banksunder the act of June 3, 1864) 2 1

Aggregate capital reduction 2 50, 000Consolidation of national banks under the

act of Nov. 7- 1918 2Capital 1, 025, 000The foregoing statement shows the aggre-

gate of increased capital for the period ofthe banks embraced in statement was 7, 794, 000

Against this there was a reduction of capi-tal owing to liquidation (other than forconsolidation with other national banksunder the act of June 3, 1864), and re-ductions of capital of2 50.000

Net increases 7, 744, 0001 Includes an increase in capital of $300,000 incident to a consolida-

tion under act of Nov. 7,1918.2 Includes a reduction in capital of $25,000 incident to a consolida-

tion under act of Nov. 7, 1918.

RULINGS OF THE FEDERAL RESERVE BOARD.Below are published rulings made by the

Federal Reserve Board which are believed tobe of interest to Federal Reserve Banks andmember banks:

Eligibility of notes of Federal land bank or joint stockland bank for rediscount.

The Federal Reserve Board has heretoforeruled that collateral notes of a Federal landbank secured by farm loan bonds are noteligible for rediscount by a Federal ReserveBank. The same principles seem to be appli-cable to the note of a joint stock land banksecured by its own bonds.

Under the terms of section 13 of the FederalReserve Act any note the proceeds of whichhave been used or are to be used for a com-mercial, industrial, or agricultural purpose iseligible for rediscount, provided that it other-wise conforms to the terms of the law and theregulations of the Federal Reserve Board.The Board, ever since the establishment of

the Federal Reserve System, has consistentlyadhered to the principle that the questionwhether or not the proceeds of a particularobligation are used for one of the purposesdefined in the law must be determined by theuse to which those proceeds are put by themaker of the note. In accordance with thisprinciple the Board has frequently ruled thatthe note of a bank, a factor, a credit com-pany, or any other such institution is noteligible for rediscount if the proceeds are usedto lend to some third party. The fact thatthe proceeds may ultimately be used by thatthird party for a commercial, industrial, oragricultural purpose can not affect the characterof the original obligation so far as the provi-sions of the Federal Reserve Act are con-cerned.

Under the terms of section 16 of the FederalFarm Loan Act, joint stock land banks areorganized for the purpose of engaging in thebusiness of lending on larm mortgage securitiesand issuing farm loan bonds. Their business


June 1920

JULY, 1920. FEDERAL RESERVE BULLETIN. 697

State Banks and Trust Companies.

The following list shows the State banks and trust com-panies which have been admitted to membership in theFederal Reserve system during the month of June:

One thousand three hundred and seventy-five Stateinstitutions are now members of the system, having atotal capital of $487,774,578, total surplus of $488,329,970,and total resources of $9,774,877,421.

District No. 3.

Federal Trust Co., Philadelphia, Pa

District No. 4.

The Ohio Savings & Trust Co., NewPhiladelphia, Ohio

The Lewis Bank & Trust Co.. UpperSandusky, Ohio

District No. 5.

PutnamCounty Bank, Hurricane, W. Va

District No. 6.

Bank of Wadley, Wadley, Ga

District No. 7.

Independence State Bank Chicago, 111.Iowa State Bank, Dexter, IowaFort Madison Savings Bank, Fort Madi-

son, Iowa

District No. 8.

Crittenden County Bank & Trust Co.,Marion, Ark

American Bank &Trust Co., Paris, Ark.Farmers & Traders Bank, Iberia, Mo..Grand Avenue Bank of St. Louis, St.

Louis, Mo

District No. 9.

South Range State Bank, South Range,Mich

Hardin State Bank, Hardin, MontJoliet State Bank, J oliet, MontFirst State Bank, Stevensville, Mont...Willow Creek State Bank, Willow Creek,

Mont :First State Bank, Wolf Point, Mont.. . .

District No. 11.

First State Bank, Bay City, TexFirst State Bank & Trust Co., Bryan,

TexFarmers State Bank, Clarendon, Tex..Farmers Guaranty State Bank, Clifton,

TexFirst State Bank, Copperas Cove, Tex.. .Guaranty Bank & Trust Co., Dallas,

TexFarmers & Merchants State Bank,

Kenedy, TexFirst State Bank & Trust Co., Kenedy,

TexCommercial Guaranty State Bank,

Longview, TexCitizens State Bank, Luling, TexLipscomb Bank & Trust Co., Luling,

TexFirst State Bank & Trust Co., Me Allen,

TexFarmers State Bank, Madisonville, Tex.First State Bank, Robstown, TexFarmers State Bank, Shiro, Tex

District No. 12.

The Peoples Bank, Sacramento, Calif..The Kuna State Bank, Kuna, IdahoBank of Myrtle Point, Myrtle Point,

OregWasco County Bank, The Dalles, Oreg..State Bank of Goldendale, Goldendale,

WashPine City State Bank, Pine City, Wash..Puget tound Bank & Trust Co., Ta-

coma, Wash

Capital.

$200,000

100,000

150,000

50,000

25,000

200,00025,000

100,000

275,00050,00025,000

200,000

30,00050,00025,00040,000

25,00030,000

55,000

100,00050,000

30,00025,000

1,000,000

50,000

60,000

50,00025,000

75,000

100,00025,00025,00025,000

800,00025,000

50,000100,000

75,00025,000

S00,000

Surplus.

$100,000

50,000

75,000

35,000

10,000

25,00013,000

50,000

75,0003,70010,000

50,000

30,00035,00010,0008,500

15,00012,000

5,600

50,0003,030

20,0009,000

100,000

50,000

75,000

6,000

55,000

12,00020,0008,00020,000

99,000

15,000

7,5001,000

30,000

Total

$3,695,051

1,787,894

871,693

493,647

188,038

2,911,971332,142

1,957,504

2,589,803325,956284,990

2,626,734

855,567416,474318,417372,784

331,751520,891

446,352

741,674346,425

495,172284,041

2,934,861

378,202

547,884

86,219150,497

353,856

984,750437,051197,444164,601

7,920,979218,317

546,014100,000

838,120176,106

3,444,044

CHANGE OF NAME.

The First Commercial State Bank, Royal Oak, Mich., has changed it 5name to First State Bank of Royal Oak.

The American Trust & Savings Bank, Albuquerque, N. Mex., haschanged its name to the State Trust & Savings Bank.

The Bank & Trust Co. of Central California, Fresno, Calif., has changedits name to Fidelity Trust & Savings Bank.

The Logan Trust Co., Philadelphia, Pa., has merged into the FidelityTrust Co., Philadelphia, Pa.

WITHDRAWAL.

The Bank of Sheboygan, Sheboygan, Wis., has withdrawn from mem-bership.

Acceptances to 100 Per Cent.

Since the issuance of the June BULLETIN the followingbanks have been authorized by the Federal ReserveBoard to accept drafts and bills of exchange up to 100 percent of their capital and surplus:

The Pacific Bank, New York City.Farmers & Mechanics National Bank, Fort Worth, Tex.National Bank of Tacoma, Tacoma, Wash.


The Comptroller of the Currency reports thefollowing increases and reductions in the num-ber and capital of national banks during theperiod from May 29 to June 25, 1920, inclusive:

Banks.New charters issued to 27With capital of $2, 837, 500Increase of capital approved for 35With new capital of 3, 739, 000Aggregate number of new charters and

banks increasing capital 62With aggregate of new capital authorized 6, 576, 500Number of banks liquidating (other than

those consolidating with other nationalbanks under the act of June 3,1864 8

Capital of same banks 1,135, 000Number of banks reducing capital 0Reduction of capitall 1, 500, 000Total number of banks going into liquida-


Aggregate capital reduction 2, 635, 000Consolidation of national banks under the

act of Nov. 7, 1918 3Capital. 15, 850, 000The foregoing statement shows the aggre-

gate of increased, capital for the period ofthe banks embraced in statement was 6, 576, 500

Against this there was a reduction of capi-tal owing to liquidation (other than forconsolidation with other national banksunder the act of June 3, 1864), and re-ductions of capital of 2, 635, 000

Net increases 3, 941, 500

Commercial Failures Reported.The tendency toward increase in number of failures in

the United States has recently become more apparent,and the 431 commercial defaults reported to R. G. Dun &Co. during three weeks of June considerably exceed the329 insolvencies of the corresponding period of 1919. For

1 Includes a reduction in capital of $1,500,000 incident to a consoli-dation under act of Nov. 7, 1918.


July 1920

698 FEDERAL RESERVE BULLETIN. JULY, 1920.

May, the latest month for which complete figures areavailable, the statement also discloses a numerical in-crease, the 547 business reverses of that month contrastingwith 531 in May of last year. With this exception, how-ever, the exhibit is the best on record for the month, andthe May liabilities of $10,826,277 are less than in anyprevious May since 1910. Separated according to FederalReserve districts, the May statistics reveal reductions innumber of failures, as compared with those of May, 1919,in 7 of the 12 districts, but these decreases are more thanoffset by the increases in the other districts, the seconddistrict making relatively the poorest showing. As tothe indebtedness, the totals are smaller than those of May,last year, in 8 of the 12 districts.

Failures during May.

Districts.

FirstSecondThirdFourthFifthSixthSeventh .EighthNinthTenthEleventhTwelfth

Total

Number.

1920

5213337424144601318161576

547

1919

58933057302663189

283584

531

Liabilities.

1920

$376,5862,413,5911 085,1822,544,2731 577 684

715,555692,45061,243

163,487179 251168,165848,810

10,826,277

1919

$1 559 2703,194,1871,096,9451,481,366

491,740246,650

1,621,869165,44545,948

703,255304,739

1,045,237

11,956,651


The applications of the following banks for permissionto act under section 11-k of the Federal Reserve Act havebeen approved by the Board during the month of June,1920:

DISTKICT NO. 2.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver, and committee of estates of lunatics:

The Broad Street National Bank, Red Bank, N. J.National Bank of Auburn, Auburn, N. Y.Citizens National Bank, Freeport, N. Y.Citizens National Bank, Fulton, N. Y.

Registrar of stocks and bonds, guardian of estates, assignee and receiverand committee of estates of lunatics:

National American Bank, New York, N. Y.

DISTRICT NO. 3.


Central National Bank, Wilmington, Del.First National Bank, Glassboro, N. J.Burlington County National Bank, Medford, N. J.First National Bank, Lebanon, Pa.Quaker City National Bank, Philadelphia, Pa.

DISTRICT No. 4.


First National Bank, Elm Grove, W. Va.Union National Bank, New Brighton, Pa.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, and receiver:

National Bank of Ashtabula, Ashtabula, Ohio.The Ohio National Bank, Columbus, Ohio.Commercial National Bank, Youngstown, Ohio.

DISTRICT NO. 6.


Fulton National Bank, Atlanta, Ga.Polk County National Bank, Bartow, Fla.

Trustee, executor, administrator, guardian of estates, assignee, receiver,and committee of estates of lunatics:

Dawson National Bank, Dawson, Ga.

DISTRICT NO. 7.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver, and committee of estates of lunatics.

National City Bank. Ottawa, 111.First-Fond du Lac National Bank, Fond du Lac, Wis.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, and receiver̂

State National Bank, Lowell, Ind.Registrar of stocks and bonds, guardian of estates, assignee, receiver,

and committee of estates of lunatics:The First National Bank, Greencastle Ind.

Trustee,executor,administrator,guardian of estates,assignee,receiver:Merchants National Bank, Grinnell, Iowa.

DISTRICT NO. 8.


First National Bank, Lake Village, Ark.First National Bank, Jefferson City, Mo.

DISTRICT NO. 9.


Union National Bank, Minot, N. Dak.Trustee, executor, administrator, guardian of estates, assignee, and

receiver:First National Bank, Argyle, Minn.

DISTRICT NO. 10.


Fort Collins National Bank. Fort Collins, Colo.Shawnee National Bank, Shawnee, Okla.

Trustee, executor, administrator, guardian of estates, assignee, andreceiver:

First National Bank, McAlester, Okla.Trustee, executor, adminstrator, and registrar of stocks and bonds:

Powell National Bank, Powell, Wyo.Registrar of stocks and bonds, guardian of estates, assignee, receiver, and

committee of estates of lunatics:First National Bank, Muskogee, Okla.

DISTRICT NO. 12.


First National Bank, Santa Paula, Calif.The Old National Bank, Spokane, Wash.


Boise City National Bank, Boise, Idaho.


July 1920

AUGUST, 1920. FEDEE VL KESERVE BULLETIN. 833

State Banks and Trust Companies Admitted.

The following list shows the State banks and trust com-panies which have been admitted to membership in theFederal Reserve system during the month of July. Onethousand four hundred and one State institutions are nowmembers of the system, having a total capital of $494,909,578,total surplus of $491,135,450, and total resources of$9,840,912,065.

District No. S.

Northeastern Trust Co., Reading, Pa . . .

District No. 5.

United Loan & Trust Co., Lynchburg,Va

Petersburg Savings & Trust Co., Peters-burg, Va

District No. 6.

The Bank of Pittsview, Pittsview, Ala..The Peoples Bank, Carrollton, GaWartrace Bank & Trust Co., Wartrace,

Tenn

District No. 7.

First State Savings Bank, Mount Car-roll, 111

District No. 8.

Monroe County Bank, Brinklev, Ark... -Bank of Russellville, Russellville, Ark..Cass Avenue Bank, St. Louis, Mo

District No. 9.

Fanners & Merchants State Bank,Eureka, Mont ,

District No. 10.

The Stockgrowers Bank, Evanston,Wyo

Uinta County State Bank, MountainView, Wyo

District No. 11.

The Celina State Bank, Celina, T e x . . . .Dallas County State Bank, Dallas, Tex..State Bank & Trust Co., Houston, Tex.First State Bank, Leakey, TexFirst State Bank, Matador, TexCitizens State Bank, Maypearl. TexBank of Commerce & Trust Co., Mer-

cedes, TexFarmers Guaranty State Bank, North

Zulch, TexMerchants State Bank, Port Arthur,

TexFirst State Bank, Roaring Springs. Tex.Central Trust Co., San Antonio, Tex . . .Guaranty State Bank & Trust Co.,

Waxahachie, Tex.Farmers State Bank, Georgetown, Tex.

District No. It.

Farmers State Bank Tetonia. IdahoThe Rideout Bank, Marysville, CalifSecurity Trust Co., Bakersfield, Calif...Mercantile Trust Co., San Francisco,

calif :

Capital.

$250,000

300,000

L, 000,000

25,00060,000

25,000

50,000

50,00075,000200,000

25,000

50,000

40,000

35,000250,000200,00025,00025,00025,000

50,000

25,000

100,00025,000

1,000,000200,00050,000

25,000250,000500,000

4,000,000

Surplus.

$25,000

200,000

100,000

2,50027,000

50,000

5,00037,75050,000

13,000

35,000

4,000

7,500105,000

12,50015,000

5,000

40,00015,000150,000

15,00050,000

2,500308,930220,000

3,000,000

Total re-sources.

$688,937

1,655,840

6,290,654

139,966594,065

47,949

636,997

322,210585,607

3,368,836

451,388

714,265

146,717

248;3331,613,4112,495,286

71,809403,610

241,642

187,045

158,657

1,705,708189,192

9,880,3151,640,670666,658

114,8755.843,6327,129,622

70,758,510

WITHDRAWAL.

The Lincoln County Bank, Merrill, Wis., has withdrawn from mem-bership.

CONVERSION.

The Northern Savings Bank, Fargo, N. Dak., into the Northern Na-tional Bank.

CONSOLIDATION.

The Savings Union Bank & Trust Co., a member bank, the MercantileTrust Co., a nonmember, and the Mercantile National Bank, San Fran-cisco, Calif., have consolidated under a new charter as the Mercantile-Trust Co., San Francisco, which company has been admitted to mem-bership.

VOLUNTARY LIQUIDATION.

Scandinavian American Bank, Astoria, Oreg.

Acceptances to 100 Per Cent.Since the issuance of the July BULLETIN the following

banks have been authorized by the Federal Reserve Boardto accept drafts and bills of exchange up to 100 per cent oftheir capital and surplus:

Citizens National Bank, Baltimore, Md.Maryland Trust Company, Baltimore, Md.Commercial National Bank, Sherman, Tex.Lincoln Trust Co., New York City.

New National Bank Charters.The Comptroller of the Currency reports the following

increases and reductions in the number and capital ofnational/banks during the period from June 26 to July 30,1920, inclusive:

Banks.New charters issued to 34With capital of $2,190, 000Increase of capital approved for 91With new capital of 14, 345, 000Aggregate number of new charters and


those consolidating with other nationalbanks under the act of June 3,1864) 7

Capital of same banks 2, 380, 000Number of banks reducing capital 0Reduction of capital 0Total number of banks going into liquida-


Aggregate capital reduction 2, 380, 000Consolidation of national banks under the

act of Nov. 7, 1918 0Capital 0The foregoing statement shows the aggre-


Against this there was a reduction of capi-tal owing to liquidation (other than forconsolidation with other national banksunder the act of June 3, 1864), and re-ductions of capital of 2, 380, 000

Net increases 14,155, 000


The tendency toward increase in the country's businessmortality has recently become more marked, and the 384commercial failures reported to R. G. Dun & Co. in threeweeks of July considerably exceed the 287 defaults of the


August 1920

834 FEDERAL RESERVE BULLETIN. AUGUST, 1920.

same period of 1919. During June, the latest month forwhich complete statistics are available, there were 674insolvencies for $32,990,965 of liabilities, whereas the 485reverses of June, last year, represented a low month recordup to that time, and the indebtedness involved by thesefailures was less than $9,500,000. Separated according toFederal Reserve districts, the June returns disclose moreinsolvencies than in that month of 1919 in 10 of the 12 dis-tricts, the exceptions being the first and third districts,and in the latter district a difference of only one failureappears. The statement of liabilities, moreover, revealssmaller amounts than in June, 1919, only in the third andfifth districts, a number of defaults of unusual size account-ing for large increases in several instances.

District.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenth .EleventhTwelfth

Total

Failures during June.

Number.

1920

55164266537306934212235

116

674

1919

61104274430205615109

3178

485

Liabilities

1920

$1,783,68416,218,230

219,092975,973314,156459,562

2,742,7552,283,002

306,250281,255278,668

7,128,338

32,990,965

4

1

9

1919

$765,929,040,301295,163597,244

,001,355302,869933,669351,94767,96931,832

210,444883,999

,482,721


The applications of the following banks for permission toact under section lL-k of the Federal Reserve Act havebeen approved by the Board during the month of July,1920:

DISTRICT NO. 1.


First National Bank, Bennington, Vt.

DISTRICT N O . 2.

Trustee, executor, administrator, registrar of stocks and bonds, guar-dian of estates, assignee, receiver, and committee of estates of lunatics:

The Black River National Bank, Lowville, N. Y.Suffern National Bank, Suffern, N. Y.

Trustee, executor, administrator, guardian of estates, assignee, receiver,committee of estates of lunatics:

New York State National Bank, Albany, N. Y.

DISTRICT N O . 4.

Trustee, executor, administrator, registrar of stocks and bonds, guar-dian of estates, assignee, receiver, and committee of estates of luiiutics:

Citizens National Bank, Piqua, Ohio.

DISTRICT NO. 5.

Executor, administrator, registrar of stocks and bonds, guardian ofestates, assignee, receiver, and committee of estates of lunatics:

Commercial National Bank, Charleston, S. C.

DISTRICT N O . 6

Trustee, executor, administrator, registrar of stocks and bonds, guar-dian of estates, assignee, receiver, and committee of estates of lunatics;

First National Bank, Carrollton, Ga.

DISTRICT NO. 7.


First National Bank, Elmburst, 111.The National Bank of Pontiac, Mich.First National Bank, Antigo, Wis.National Bank of Manitowoc, Wis.Marine National Bank, Milwaukes, "Wis.National Exchange Bank of Milwaukee, Wis.American National Bank, Ripon, Wis.


First National Bank, Henry, 111.Executor, administrator, guardian of estates, assignee, and receiver:

First National Bank, Bancroft, Iowa.

DISTRICT NO. 10.

Trustee, executor, administrator, registrar of stocks and bends, guardianof estates, assignee, receiver, and committee of estates of lunatics:

Lamar National Bank, Lamar, Colo.Commercial National Bank & Trust Co., Emporia, Kans.First National Bank, Lawton, Okla.

DISTRICT NO. 12.


First National Bank, Pasoo, Wash.National Bank of Tacoma, Wash.

PRINCIPAL BOOKS AND ARTICLES RELATING TOBANKING AND CURRENCY RECEIVED AT THEFEDERAL RESERVE BOARD LIBRARY DURINGTHE MONTH ENDING JULY 15, 1920.

Alabama. Laws, statutes, etc.Combined banking laws of the State of Alabama. In effect Jan. 1,

1920. 1919. 41 p.Arizona. Laws, statutes, etc.

Banking laws of the State of Arizona. July 1,1919. 18 p.Arnold, Julean.

. . . Salient facts about China. 1920. 8 p.Brady, John E.

Digest of the Banking law journal . . . a classified digest of legaldecisions published in the Banking law journal, from the time of

. its foundation in 1889 to June, 1919. 1919. 408 p.Carles. Frederick.

Essentials of investment; the analysis of a bond circular. 1919. 84 p.Chamberlain, Lawrence.

Principles of bond investment. 1911. 551 p.Conyngton, Thomas, and Louis Bergh.

Business law. 1920. 431 p.Friedman, Elisha M.

International commerce and reconstruction. 1920. 432 p.Hobson, J. A.

Taxation in the new state. 1920. 254 p.Parker, William.

The Paris bourse and French finance; with reference to organizedspeculation in New York. (Columbia University studies inhistory, economics and public law, v. 89, no. 3.) 1920. 116 p.

Beichsbank. Statistische Abteilung. Berlin.Die deutschen AbrechrmngsstelJen im Jahre 1919, auf Veranlassung

der Berliner A brechnungsstelle, bearbeitet in der StatistischenAbteilung der Reichsbank. 1920. 55 p.

Spalding, William F.A primer of foreign exchange. 1919. 107 p.

Jahrbuch fur Gesetzgebung, Verwaltung und Volkswirtschaft. Ed. bySchmoller. Jahrgang 40-42 complete.

Maryland. Bank commissioner.. . . Annual report . . . showing the condition of the State banks,

trust companies, and savings institutions for the period endingFebruary 1,1920.

BANK REPORTS, 1919.Bank of Chosen, Seoul.

. . . Semi-annual report. . . 1919, 2d half.Banque de France, Paris.

. . . Compte rendu au nom du conseil general de la banque et rapportde MM les censeurs, 1919.

Commonwealth bank of Australia, Sydney.. . . Aggregate balance sheet. . . 1919.

Nationalbankeni Kj0benhavn.Nationalbankensregnskab f o r . . . 1918-19.

Nederlandsche bank, Amsterdam.. . . Verslag door den president en door de commissarissen... 1919-20.

Norges bank, Christiania.Regnskap . . . 1919.

Other bank reports.—Anglo-South American bank, limited, London.Bank of Liverpool and Martins, limited, Liverpool. Bank of Montreal.The Canadian bank of commerce, Toronto. Chartered bank of India,Australia, and China, London. Comptoir national d'escompte deParis. Credit Lyonnais, Lyons. Hongkong and Shanghai bankingcorporation, Hongkong. Ionian bank, limited, London. Kjoben-havns handelsbank i Kj0benhavn. London and River Plate bank,limited, London. London joint city and midland bank, limited,London. Manchester and Liverpool district banking company,limited, Manchester. National bank of India, limited, London. TheState savings bank of Victoria, Melbourne.

NEW PERIODICALS.

Board of trade journal, London. Frankfurter zeitung, Frankfurt.Living age, Boston. Plutus, Berlin.


August 1920

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 945

International Banking Corporation—Continued.Lyons, France.Bombay, India.Calcutta, India.Rangoon, India.Yokohama, Japan.Kobe, Japan.Batavia, Java.Sourabaya, Java.Panama, Republic of Panama.Colon, Republic of Panama.Cebu, Philippine Islands.Manila, Philippine Islands.Singapore, Straits Settlements.Santo Domingo, Dominican Republic.Sanchez, Dominican Republic.San Pedro de Macoris, Dominican Republic.Santiago, Dominican Republic.Barahona, Dominican Republic.Puerta Plata, Dominican Republic.(A branch office is also maintained by the Inter-

national Banking Corporation in San Francisco,Calif.)

Park-Union Foreign Banking Corporation, New York City:Paris, France.Shanghai, China.Tokyo, Japan.Yokohama, Japan.(Branch offices are also maintained in San Fran-

cisco, Calif., and Seattle, Wash., by the Park-Union Foreign Banking Corporation.)

The First National Corporation, Boston, Mass., hasopened no foreign branches. A branch office of this cor-poration is maintained at 14 Wall Street, New York City.

The Shawmut Corporation of Boston, Mass., has openedno foreign branches. A branch office of this corporationis maintained at 65 Broadway, New York.

The French American Banking Corporation of NewYork City and the Foreign Credit Corporation of New YorkCity have opened no foreign or domestic branches.


The following list shows the State banks and trust com-panies which have been admitted to membership in theFederal Reserve System during the month of August, 1920.One thousand four hundred and seventeen State institu-tions are now members of the system, having a totalcapital of $496,789,578, total surplus of $491,409,950, andtotal resources of $9,853,495,006.

District No. 2.

Bank of Blasdell, Blasdell,-N. Y

District No. S.

Oxford Bank of Frankford, Philadel-phia, Pa

Peoples Bank, Philadelphia, Pa

District No. 4.

American Trust & Savings Bank ofMiddletown, Middletown, Ohio

District No. 5.

State Bank of Kenbridge, Kenbridge,Va

$30,000

250,000200,000

100,000

$10,500

55,00025,000

20,000

25,000 , 8,000 245,424

Total

$41,449

1,898,0203,775,508

2,283,004

District No. 7.

Farmers & Merchants State Bank,Seneca, Wis

State Bank of Cowden, Cowden, 111First Trust & Savings Bank, Rock

Island, 111Greenfield Savings Bank, Greenfield,

IowaTaylor County State Bank, Clearfield,

Iowa

Van Wert State Bank, Van Wert, Iowa.

District No. 10.

First Bank of Okarche, Okarche, Okla.

District No. 11.

Texas State Bank, Canton, TexFirst State Bank, Mathis, TexFirst State Bank, Wills Point, Tex... .

District No. 12.British American Bank, San Fran*

Cisco, CalifBank of Haines, Haines, OregLincoln County State Bank, Daven-

port, Wash

Capital.

$25,00025,000

100,000

30,000

25,00025,000

50,000

50,00030,000

100,000

1,000,00025,000

50,000

Surplus.

$15,00010,000

25,000

5,000

5,00025,000

15,000

25,00016,00035,000

10,0005,000

10,000

Total

$535,862333,543

554,198

404,159

173,919451,761

610,683

257,300137,081624,830

3,225,809338,682

561,289

"WITHDRAWALS.

The Elmhurst State Bank, Elmhurst, 111., and the North Side StateSavings Bank, Chicago, 111., have withdrawn from membership.


Since the issuance of the August BULLETIN the followingbanks have been authorized by the Federal Reserve Boardto accept drafts and bills of exchange up to 100 per cent oftheir capital and surplus:

The First National Bank, New Haven, Conn.Dallas National Bank, Dallas, Tex.The First National Bank, Los Angeles, Calif.


Continuance of a tendency toward increase in the coun-try's business mortality is reflected in the 459 commercialfailures reported to R. G. Dun & Co. during three weeksof August, as against 318 defaults in the correspondingperiod of 1919. Exclusive of banking suspensions andpersonal bankruptcies, the statement for July, the latestmonth for which complete statistics are available, discloses681 insolvencies for $21,906,412 of liabilities, the numberof reverses being the largest of any month since December,1918, and the indebtedness the heaviest of all monthsback to January, 1916, excepting the $32,990,965 of June,this year. The July statistics contrast sharply with thelow-record total of 452 failures of July, 1919, when theamount of money involved barely exceeded $5,500,000.Separated according to Federal Reserve districts, the Julyreturns show more defaults than in that month last yearin 10 of the 12 districts, the exceptions being the eighthdistrict, where some falling off appears, and the sixthdistrict, where no change at all is revealed. In respectof the liabilities, decreases from the July, 1919, figures areshown only by the sixth and eighth districts.


September 1920

946 FEDEKAL RESERVE BULLETIN. SEPTEMBER, 1920.

Failures during July.

Districts.


Total

Number.

1920

48172295439327028143441

120

681

1919

45792844173251446

212362

452

Liabilities.

1920

$470,25911 438 511

755,711921,988

1,995,634443,135

2,417,40196,040

238,471548,910

1,148,6141,431,738

21,906,412

1919

$320,0691,836,523

315,061247,384316,282486,668375,494240,81267,687

201,188261,727838,115

5,507,010


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from July 31 to August 27,1920, inclusive:

Banks.New charters issued to 24With capital of $2,120, 000Increase of capital approved for 36With new capital of 8, 735, 000Aggregate number of new charters and

banks increasing capital 60With aggregate of toew capital authorized 10, 855, 000Number of banks liquidating (other than


Capital of same banks 275, 000Number of banks reducing capital 0Reduction of capitall 125, 000Total number oi banks going into liquida-


Aggregate capital reduction 400, 000Consolidation of national banks under the

actof Nov. 7, 1918 2Capital 200, 000The foregoing statement shows the aggre-


Against this there was a reduction of capi-tal owing to liquidation (other than forconsolidation with other national banksunder the act of June 3, 1864), and re-ductions of capital of1 400,000

Net increases 10, 455,000

1 Includes two reductions in capital aggregating $125,000 incident toconsolidations under Act of November 7, 1918.


The applications of the following banks for permission toact under section 11-k of the Federal Reserve Act havebeen approved by the Board during the month of August,1920:

DISTRICT NO. 2.


The Exchange National Bank of Olean, Olean, N. Y.

DISTRICT NO. 3.

Trustee, executor,administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver, and committee of estates of lunatics:

Woodstown National Bank, Woodstown, N. J.Guardian of estates, assignee, receiver, and committee of estates of

lunatics:The National Bank of Boyertown, Boyertown, Pa.

DISTRICT No. 4.

Trustee,executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver, and committee of estates of lunatics:

Bell National Bank, Pineville, Ky.The Grove City National Bank, Grove City, Pa.

DISTRICT NO. 5.


Western National Bank of Baltimore, Baltimore, Md.Guardian of estates, assignee, receiver, and committee of estates of luna-

tics:First National Bank of Danville, Danville, Va.

DISTRICT NO. 6.

Trustee,executor, administrator, registrar of stocks and bonds, guardianofestates, assignee, receiver, and committee of estates of lunatics:

The First National Bank of Oxford, Oxford, Ala.

DISTRICT No. 7.

Trustee, executor, administrator, registrar of stocks and bonds, guardianofestates, assignee, receiver, and committee ofestates of lunatics:

Union National Bank, Muskegon, Mich.Calumet National Bank of Chicago, Chicago, 111.Perry National Bank, Perry, Iowa.First National Bank of Viroqua, Viroqua, Wis.The First National Bank of Clay City, Clay City, Ind.The First National Bank of Edgerton, Edgerton, Wis.

DISTRICT NO. 9.

Trustee, executor, administrator, guardian of estates, assignee, andcommittee ofestates of lunatics:

First National Bank of Little Falls, Little Falls, Minn.

DISTRICT N O . 10.

Trustee, executor, administrator, registrar of stocks and bonds, guardianofestates, assignee, receiver, and committee ofestates of lunatics:

First National Bank of Gunnison, Gunnison, Colo.

Principal Books and Articles Relating to Banking andCurrency Received at the Federal Reserve BoardLibrary During the Month Ending August 15, 1920.

Anderson, Benjamin McAlester.The Fallacy of "the stabilized dollar." 1920. 16p.

Bankers trust company, New York.America's merchant marine; a presentation of its history and devel-

opment to date with chapters on related subjects. 1920. 257p.Berges, Maurice.

La probleme mon&aire et fiduciaire, par Maurice Berges et FredericBesson. 1918. 164p.

Federal reserve bank of San Francisco, eomp.'Directory of banks in twelfth federal reserve district, June, 1920.

1920. 46pFoote. Lewis A.

The Adap-table system; a practical and economic solution of theaecrual accounting problem. cl920. 2 v.

Godfrey, Carlos Enxmor.The Mechanics bank, 1834-1919, Trenton in New Jersey; a history.

1919. 164p.Guaranty trust company of New York.

Greater France- C1920. 28p.Huart, Albin.

Etude compare des principaux systemes de banque; Porganisationdu credit en France. 1913. 351p.

International economic conference, London. 1919.The famine in Europe, the facts and suggested remedies; being a

report of the International economic conference, called by theFight the famine council, and held at Caxton hall, Westminster,London, on the 4th, 5th, and 6th of November, 1919, by LordParmoor, Sir George Paish, . . . and others. 1920. 126p.

Kahn, Otto Hermann.O ur economic and other problems; a financier's point of view. cl920.

420p.Page, H. M., corny)

Chart of money and discount rates in London during the year 1919,comp. by Page and Gwyther. 1920.

Paine, William Worship.Short papers on—1. A Capital levy as a means of taxation. 2. The

Present unrest in industry. 3. Capital and labour 4 TheNationalization of industry. 1920. 47p.


September 1920

1064 FEDEKAL RESERVE BUI^LETIN. OCTOBER, 1920.


Reflecting a continued rise in the country's businessmortality, commercial failures reported to R. G. Dun & Co.during three weeks of September number 418, against 312in the corresponding period of 1919. The returns forAugust, the latest month for which complete statisticsare available, disclose 673 defaults for $28,372,895 of liabil-ities, whereas in August of last year there were only 468insolvencies, involving an indebtedness of less than$6,000,000. Excepting 1919, however, the August failuresare fewer in number than in that month of any year inmore than two decades, although the liabilities, owing toan unusual number of large reverses, are considerablyabove the average for the month. When separated accord-ing to Federal Reserve districts, the August statementshows more defaults than in that month of 1919 in 10 of the12 districts, the exceptions being the sixth and tenthdistricts, while only in the latter district is the indebted-ness less than that of August, 1919. In several districts,notably the second district, the liabilities are very muchheavier than last year's.

Failures during August.

District.

FirstSecond.ThirdFourthFifth...SixthSeventh .EighthNinth .Tenth..EleventhTwelfth

Total

Number.

1920

5817933704042863118113372

673

1919

52682748205263206

173065

468

Liabi

1920

$780,21015,009,8383,066,9141,347,045

691,7852,605,4293,177,188

288,672} 85,515' 85,735411 027823,537

28,372,895

lities.

1919

$518,5051,615,398

436,387321,764141,410

. 705,8521,079,013

118,392| 50,210

I 141,3701 ; 249,603

554,489

5,932,393


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from August 28 toSeptember 24, 1920, inclusive:

Banks.New charters issued to 18With capital of $2, 075, 000Increase of capital approved for 17With new capital of 1,190,000Aggregate number of new charters and



Capital of same banks 0Number of banks reducing capital 0Reduction of capital 0Total number of banks going into liquida-


Aggregate capital reduction 0Consolidation of national banks under the

act of Nov. 7, 1918 0Capital 0The foregoing statement shows the aggre-


Against this there was a reduction of capi-tal owing to liquidation (other than forconsolidation with other national banksunder the act of June 3, 1864), and re-ductions of capita] of 0

Net increases 3, 265,000


October 1920

NOVEMBER, 1020. FEDERAL RESERVE BULLETIN. 1175


increases and reductions in the number and capital ofnational banks during the period from September 25 toOctober 29, 1920, inclusive:

New charters issued toWith capital of.Increase of capital approved forWith new capital ofJ

Aggregate number of new charters and banks in-creasing capital

With aggregate of new capital authorizedNumber of banks liquidating (other than those

consolidating with other national banks underthe act of June 3, 1864)

Capital of same banksNumber of banks reducing capitalReduction of capitalTotal number of banks going into liquidation or

reducing capital (other than those consolidatingwith other national banks under the act of June3,1864)

Aggregate capital reductionConsolidation of national banks under the act of

Nov. 7,1918CapitalThe foregoing statement shows the aggregate of in-

creased capital for the period of the banks em-braced in statement was

Against this there was a reduction of capital owingto liquidation (other than for consolidation withother national banks under the act of June 3,1864), and reductions of capital of

Net increasse

Banks.

$2,660,000

"'2*975*666

5,635,000

775,000

"75*666

850,000

*i,'666"666

5,635,000

850,0004,785,000

1 Includes an increase in capital of $100,000 incident to a consolidationunder act of Nov. 7,1918.

Dollar Exchange.Under the provisions of section 13 of the

Federal Reserve Act, which provides that mem-ber banks, with the approval of the FederalReserve Board, may accept drafts for the pur-pose of furnishing dollar exchange, drawn uponthem by banks or bankers located in foreigncountries or dependencies or insular posses-sions of the United States in which it is deter-mined that the usages of trade require suchacceptance facilities, the Board has designatedas such the following countries and insularpossessions: Argentina, Bolivia, Brazil, BritishGuiana, British Honduras, Chile, Colombia,Costa Rica, Cuba, Dutch Guiana, Ecuador,French Guiana, Guatemala, Honduras, Nica-ragua, Panama, Paraguay, Peru, Porto Rico,San Salvador, Santo Domingo, Trinidad, Uru-guay, and Venezuela.

Commercial Failures Reported.Continuance of the increase in the country's business

mortality is reflected in the 576 commercial failuresreported to R. G. Dun & Co. during three weeks of October,as against only 297 in the corresponding period of 1919.The returns for September, the latest month for whichcomplete statistics are available, disclose 677 defaultsfor $29,554,288 of liabilities, whereas in September of lastyear there were but 473 insolvencies, involving $8,791,319of indebtedness. Excepting the 681 reverses of July ofthe present year, the September failures exceed in numberthose of any month since December, 1918, and the liabil-ities, owing to an unusual number of large defaults, arethe heaviest of any month, excepting June of this year,

back to April of 1915. When separated according toFederal Reserve districts, the September statementreveals more failures than in that month of 1919 in eachof the 12 districts, aside from the third district, and onlyin the fourth and sixth districts is there any reduction inthe indebtedness. In several instances, notably in thesecond and seventh districts, the September liabilitiesare very much above those of that month of last year.

Failures during September.

District.

FirstSecondThirdFourthFifth... . .SixthSeventhEighthNinthTenthEleventhTwelfth

Total...

Number.

1920

7314525655444673516263691

677

1919

52922948424048189

207

68

473

Liabilities.

1920

$1,360,76214,551,2831,417,5241,348,6811,646,417

500,3715,679,728

352,87399, 730

466,451864,924

1,265,544

29,554,288

1919

$1,037,5462 335 120

816,2301,559,307

704,352771,880661,371210,61690,282

152,45848,883

403,274

8,791,319

Acceptances to 100 Per Cent.Since the issuance of the October BULLETIN the follow-

ing banks have been authorized by the Federal ReserveBoard to accept drafts andibills of exchange up to 100 percent of their capital and surplus:

National Bank of Commerce, Detroit, Mich.Manufacturers & Traders National Bank, Buffalo, N. Y.Citizens Commercial Trust Co., Buffalo, N. Y.First National Bank, Greensburg, Pa.

November Forecast of Corn Production.November crop reports do not differ from October fore-

casts for any of the principal crops, with the exception ofcorn. Figures of corn production issued by the Bureau ofCrop Estimates as of November 1 are shown by FederalReserve districts in the table below. Although the corncrop is expected to be about 17,000,000 bushels below theOctober forecast, yet it is the largest crop ever produced.November forecasts are lower than those of the previousmonth for all the important corn-producing districts, ex-cept the Chicago district, where an expected increase of25,000,000 bushels is shown. The corn crop of the Chi-cago district in the statement reaches 965,000,000 bushels,a larger total than the crop raised in the entire UnitedStates in any year prior to 1870.

Production of corn by Federal Reserve districts.[Forecasts of the Bureau of Crop Estimates.]

[In thousands of bushels.]

Federal Reserve district.

BostonNew YorkPhiladelphia.ClevelandRichmond. . . .AtlantaChicagoSt. LouisMinneapolis..Kansas City...DallasSan Francisco.

Total. . . .

Nov. 1 I Oct . lforecast forecastfor 1920. for 1920.

8,10138,53363,423

206,932199,037251,145964,830456,070250,088554,258197,541

9,168

3,199,126

8,16639,17162,563

211,282199,349259,043939,972468,004260,030561,543197,680

9,389

3,216,192

Sept . lforecastfor 1920.

Estimatefor 1919.

7,692 !37,866 i61,769 !

212,077 |202,334 !259,295 !896,181 i464,938 |234,226 !548,679 |196,997 I9,295 !

10,27641,08966,444

212,297188,994240,315927,852380,722242,363372,870225,7438,485

3,131,349 ; 2,917,450


November 1920

1300 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

Voluntary liquidation.—Leon Savings Bank, Leon, Iowa.Change of place of business.—The Farmers and Stock-

growers Bank of Sweet, Gem County, Idaho, has removedits place of business to Montour, Gem County, Idaho.


The applications of the following banks for permission toact under section 11 (k) of the Federal Reserve Act havebeen approved by the Board during the month ofNovember, 1920:

DISTRICT NO. 2.

Trustee, exe :'or, administrator, registrar of stocks and bonds, guar-dian of esta ;, assignee, receiver, committee of estates of lunatics:

The Secon National Bank of Hoboken, Hoboken, N. J.The First i\ fional Bank of Ridgewood, Ridgewood, N. J.

DISTRICT NO. 3.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver, committee of estates of lunatics:

The County National Bank of Lock Haven, Lock Haven, Pa.The First National Bank, Merchantville, N. J.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver.

The Broad Street National Bank, Philadelphia, Pa.

DISTRICT NO. 4.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver:

The Central National Bank of Cleveland, Cleveland, Ohio.The Superior National Bank and Trust Company, Cleveland, Ohio.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver and committee of estates of lunatics.

The First National Bank, Sharon, Pa.

DISTRICT NO. 7.

Guardian of estates, assignee, receiver, committee of estates of lunatics:The Des Moines National Bank, Des Moines, Iowa.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver and committee of estates of lunatics.

The First National Bank, Aurelia, Iowa.

DISTRICT NO. 8.


The St. Claire National Bank of Belleville, Belleville, 111.The First National Bank of Marion, Marion, 111.

DISTRICT NO. 10.


The First National Bank, Emerson, Nebr.The First National Bank of Randolph, Randolph, Nebr.

Trustee, executor, registrar of stocks and bonds and guardian of estates.The First National Bank, Marysville, Mo.


Since the issuance of the November BULLETIN the fol-lowing bank has been authorized by the Federal Re-serve Board to accept drafts and bills of exchange up to100 per cent of its capital and surplus:

Security National Bank of Oklahoma City, Okla.


The tendency toward increase in the country's businessmortality has become more sharply denned, and the 746commercial failures reported to R. G. Dun & Co. duringthree weeks of November materially exceed the 408 de-faults of the same period of 1919. The returns for Octo-

ber, the latest month for which complete statistics areavailable, disclose 923 insolvencies for $38,914,659 of lia-bilities, as against only 463 failures for less than $7,000,000in the corresponding month of last year. It thus appearsthat the October defaults are practically double in num-ber those of that month of 1919, while the expansion inthe indebtedness is relatively much greater, owing to anunusual number of insolvencies of exceptional magnitude.The October failures, moreover, are larger in number thanthose of any month since March, 1918, and the liabilities arethe heaviest of all months back to April of 1915. Separateda ?cording to Federal Reserve districts, the October state-ment shows more failures than in that month of 1919 ine ^ery instance, except in the sixth district, where thereis no change, and in the ninth district, where a reductionoi one default is seen. Aside from the first district, wheret\ ere is a moderate decrease, the October liabilities showii .creases in every case, and some of the differences arestriking.

Failures during October.

Districts.

FirstSecondThirdFourth..FifthSixth . . ...SeventhEighthNinthTenthFleventhTwelfth

Total

Number.

1920

5927527695838

12247164142

129

923

1919

508624492138592317272247

463

Liabilities.

1920

$938,59515,462,8662,902,6091,933,8861,644,702

613,3076,259,5661,280,507

83,769775,366

2,947,9574,071,529

38,914,659

1919

$1,016,0791,650,441

341,294763,728119,567256,923715,161249,47164,709

361,861263,516

1,069,216

6,871,966


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from October 30, toNovember 26, 1920, inclusive:

New charters issued to.With capital of..Increase of capital approved forWith new capital ofAggregate number of new charters and banks in-

creasing capitalWith aggregate of new capital authorizedNumber of banks liquidating (other than those

consolidating with other national banks underthe act of June 3, 1864)

Capital of same banksNumber of banks reducing capitalReduction of capitalTotal number of banks going into liquidation or

reducing capital (other than those consolidatingwith other national banks under the act of June3,1864)

Aggregate capital reductionConsolidation of national banks under the act of

Nov. 7, 1918CapitalThe foregoing statement shows the aggregate of

increased capital for the period of the banksembraced in statement was

Against this there was a reduction of capital owingto liquidation (other than for consolidation withother national banks under the act of June 3,1864), and reductions of capital of

Net increases..

Banks.

34

Amount.

$2,110,000

2,

2,

890,000

,000,000

,225,000

0

,225,000

730,000

3,000,000

2,225,000

775,000


December 1920

JANUARY, 1921. FEDERAL RESERVE BULLETIN.

Federal Advisory Council.

The following have been elected as membersof the Federal Advisory Council to serve duringthe year 1921:

District No. 1—Philip Stockton, Boston, Mass.District No. 2—Paul M. Warburg, New York City.District No. 3—L. L. Rue, Philadelphia, Pa.District No. 4—Corliss E. Sullivan, Cleveland, Ohio.District No. 5—Joseph G. Brown, Raleigh, N. C.District No. 6—Edward L. Lane, Jacksonville, Fla.District No. 7—John J. Mitchell, Chicago, 111.District No. 8—F. 0. Watts, St. Louis, Mo.District No. 9—C. T. Jaffray, Minneapolis, Minn.District No. 10—E. F. Swinney,• Kansas City, Mo.District No. 11—R. L. Ball, San Antonio, Tex.District No. 12—A. L. Mills, Portland, Oreg.

Edge Act Corporation Organized.

On Wednesday, December 29, 1920, theFederal Keserve Board approved the articlesof association and organization certificate ofthe Federal International Banking Co., acorporation organized under the provisions ofsection 25 (a) of the Federal Reserve Act,commonly known as the "Edge Act." Thecapital of this corporation is $7,000,000 andits home office is in New Orleans, La. It isincorporated for the purpose of engaging inthe business of international or foreign bankingor other international or foreign financialoperations. Pending the issue of a final per-mit to commence business the corporation hasauthority to exercise only those powers whichare incidental and preliminary to its organiza-tion.

Export and Exchange Transactions with Russia.

The following statement for the press wasissued on December 20, 1920:

The Secretary of the Treasury and the Fed-eral Reserve Board announce that, with theapproval of the Department of State and inorder to give force and effect to the action ofthat Department in removing restrictions inthe way of trade and communication withSoviet Russia, as announced by that Depart-ment on July 7, 1920, all rules and regulationsrestricting the exportation of coin, bullion,and currency to that part of Russia now underthe control of the so-called Bolshevik Govern-ment, or restricting dealings or exchange trans-actions in Russian rubles, or restricting trans-fers of credit or exchange transactions with thatpart of Russia now under the control of the so-called Bolshevik Government, have been sus-pended, effective December 18, 1920, untilfurther notice.

69

Commercial Failures Reported.Reflecting the changed business conditions and falling

prices, the country's commercial mortality discloses amore marked tendency toward increase, the 1,025 failuresreported to R. G. Dun & Co. for three weeks of Decemberlargely exceeding the 400 defaults of the same period of1919. During the latter period, however, the insolvencieswere abnormally moderate. The statement for November,the most recent month ,for which complete statistics areavailable, shows 1,050 failures for $30,758,130 of liabilities,against 551 defaults for $9,177,321 in the correspondingmonth last year. The November insolvencies are thelargest of any month since March, 1918, and the indebted-ness is the heaviest on record for November. Separatedaccording to Federal Reserve districts, the Novemberreturns reveal more failures in every instance than inthat month of 1919, while only in the fourth district arethe liabilities smaller.

Failures during November.

District.


Total

Number.

1920

10528147664790

12558373550

109

1,050

1919

61992958263474286

222886

551

Liabilities.

1920

53,486,55810,776,9721,010,9561,113,7241,184,1051,911,9923,647,520

829,8891,235,7611,582,279

839,5483,138,826

30,758,130

1919

$535,6091,548,918

589,6114,071,586

132,640301,065434,048235,393108,176204,082253,516762,677

9,177,321


increases and reductions in the number and capital ofnational banks during the period from November 27 toDecember 31, 1920, inclusive:

New charters issued toWith capital ofIncrease of capital approved for *With new capital ofAggregate number of new charters and banks

increasing capitalWith aggregate of new capital authorizedNumber of banks liquidating (other than those

consolidating with other national banks underthe act of Tune 3, 1864)

Capital of same banksNumber of banks reducing capitalReduction of capitalCharter expired by limitationCapital of such bankTotal number of banks going into liquidation

or reducing capital (other than those con-solidating with other national banks underthe act of June 3, 1834) and expiring by limi-tation

Aggregate capital reduction. —Consolidation of national banks under the act

of Nov. 7, 1918Capital

The foregoing capital shows the aggregate ofincreased capital for the period of the banksembraced in statement

Against this, there was a reduction of capitalowing to liquidation (other than for consolida-tion with other national banks under the actof June 3, 1SP.4) and expiration of charter

Net reduction

1 Includes two Increases in capital Faggconsolidations under act of Nov. 7,1918.

regatii

Banks.

23

26

49

8

0

1

9

4

lg $100,000

Amount.

"*$1,*496*666

1,675, COO

3,165,000

5,325,000

0

50,000

5,375,000

3,450,000

3,165,000

5,375,0002,210,000

incident to


January 1921

FBBBUARY, 1921. FEDERAL RESERVE BULLETIN. 189


The applications of the following banks for permissionto act under section 11 (k) of the Federal Reserve Acthave been approved by the Board during the month ofJanuary, 1921:

DlSTEICT NO. 1.


The First National Bank of Biddeford, Me.The First National Bank of Greenfield, Mass.The Appleton National Bank of Lowell, Mass.

DISTRICT NO. 2.


The Bath National Bank, Bath, N. Y.The First National Bank of Cuba, N. Y.The Quassaick National Bank of Newburgh, N. Y.

Guardian of estates and committee of estates of lunatics:The First National Bank of Paterson, N. J.

DISTRICT NO. 3.


The First National Bank of Bordentown, N. J.The First National Bank of Chester, Pa.The First National Bank of Gettysburg, Pa.

Registrar of stocks and bonds, guardian of estates, assignee, receiver,and committee of estates of lunatics:

The Conestoga National Bank of Lancaster, Pa.

DISTRICT NO. 4.

Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics

The First National Bank of Blairsville, Pa.

DISTRICT NO. 5.

Trustee, executor, adm nistrator, registrar of stocks and bonds, guar-dian of estates, assignee, receiver, and committee of estates of lunatics:

The National Bank of Alamance of Graham, N. C.The Farmers & Merchants National Bank of Winchester, Va.

DISTRICT NO. 6.


The First National Bank of Brooksville, Fla.

DISTRICT NO. 7.


The First National Bank of Marengo, 111.The First National Bank of Ruthven, Iowa.

Executor, administrator, registrar of stocks and bonds, guardian ofestates, assignee, receiver, and committee of estates of lunatics:

The City National Bank of Lansing, Mich.

DISTRICT NO. 9.


The First National Bank of Menominee, Mich.The Second National Bank of Minot, N. Dak.

DISTRICT NO. 10.

Trustee, executor, administrator, and registrar of stocks and bonds:The Columbia National Bank of Kansas City, Mo.

DISTRICT NO. 12.


The Marine National Bank of Seattle, Wash.


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from January 1 toJanuary 28, 1921, inclusive:

Banks.

New charters issued toWith capital of IIncrease of capital approved for iWith new capital of jAggregate number of new charters and banks \

increasing capital \With aggregate of new capital authorized jNumber of banks liquidating (other than those |

consolidating with other national banks under jthe act of June 3,1864) I

Capital of same banks ,Number of banks reducing capital ,Reduction of capitalTotal number of banks going into liquidation

or reducing capital (other than those con-solidating with other national banks underthe act of June 3, 1864)

Aggregate capital reductionConsolidation of national banks under the act

of Nov. 7, 1918Capital

60

77

Amount.

SI, 315,000

" s,' 626* 666

6,335,000

6,725,000

6

The foregoing statement shows the aggregate ofincreased capital for the period of the banks ;embraced in statement i

Against this there was a reduction of capital ]owing to liquidation (other than for consolida- jtion with other national banks under the act 'of June 3,1864)

6,725,000

" i , " 600,'666

6,335,000

6,725,000

Net reduction. 390,000


After four successive years of diminishing commercialmortality, the business reverses of 1920, as shown by therecords of R. G. Dun & Co., increased sharply in both num-ber and liabilities. Exclusive of banking and other fidu-ciary suspensions, the defaults in the United States duringthe 12 months recently ended numbered 8,881 and sup-plied $295,121,805 of indebtedness, as against only 6,451failures, involving $113,291,237, in the immediately pre-ceding year. The insolvencies of 1919, it is important tonote, were fewer in number than those of any year in almostfour decades, and the liabilities were the smallest since1905. When allowance is made for these facts and when itis also considered that the many new enterprises whichwere started last year enhanced the possibilities of financialembarrassment, the failure record of 1920 appears less con-spicuously unfavorable. While the unusual number oflarge reverses is an unsatisfactory feature, the percentage ofall failures to total firms in business is much below the aver-age, and this is also true of the ratio of defaulted indebted-ness to solvent payments through the clearing houses.

The increase of 2,430 in number of commercial insolven-cies last year, as compared with those of 1919, is relativelymuch smaller than the expansion of $181,800,000 in theliabilities. Thus the rise in number is 37.7 per cent,whereas the indebtedness is larger by 160.5 per cent. Asa result of the latter change, the amount of money involvedby last year's failures is greater than that of any year since1915, and, with one other exception—1914—has not beenexceeded in any year back to 1893. The number of defaults,on the other hand, is less than in all years since 1882, asidefrom the abnormally low mortality of 1919. Comparing


February 1921

190 MDE&AL RESERVE BTJLLJSTIK. FEBRUARY,

with the high record of 22,156 reverses of 1915, when theeconomic unsettlement resulting from the outbreak of theWorld War was strikingly reflected in the insolvency sta-tistics, a numerical reduction of 59.5 per cent is disclosed.

Separated according to occupation, the 1920 insolvencystatement reveals increases, both numerically and other-wise, in manufacturing, trading, and other commercialbranches, as compared with the returns of 1919. Number-ing 2,635 and involving $127,992,471 of liabilities, the man-ufacturing defaults are 4] .3 per cent larger in number and148 per cent heavier in amount of indebtedness than the1,865 similar reverses for $51,614,216 of 1919, while the5,532 trading failures for $88,558,347 are 37.9 per cent morein number and 135.1 per cent greater in liabilities than the4,013 insolvencies for $37,670,443 reported among tradersduring the earlier year. The class designated as "othercommercial," which embraces defaults that can not prop-erly be included in either manufacturing or trading, shows714 reverses for $78,570,987, or a numerical increase of 24.6per cent and an expansion of 227.3 per cent in the indebted-ness over the 573 such failures for $24,006,578 in 1919. Itthus appears that relatively the most unsatisfactory nu-merical exhibit is made by the manufacturing division,while the "other commercial" failures, although disclosingthe smallest rise in number, reveal much the larger in-crease in liabilities.

In 1919 the number of large failures had fallen to thelowest point in many years, but the number of suchdefaults during 1920 was the largest on record, and theliabilities were the heaviest since 1914. Numbering 453,the failures for $100,000 or more in each case last yearsupplied $191,808,042 of aggregate indebtedness, asagainst 191 such insolvencies in 1919, with liabilities of$55,986,543. In point of number, the closest approachto last year's unfavorable showing was in 1914, when409 large defaults were reported, and the indebtednessof such reverses in that year was $210,700,000. By farthe largest proportion of the reverses of unusual magni-tude in 1920 occurred in manufacturing lines, where thefailures for $100,000 or more in each instance numbered230 and involved $89,933,982 altogether, while therewere 139 similar defaults among traders for $34,609,853.The remaining 84 large insolvencies, with liabilities of$67,264,207, were of agents, brokers, and other concernsthat can not be properly included in either of the twoleading divisions.

In the following tables the figures as compiled from therecords of R. G. Dun & Co. are separated as to each of the

twelve Federal Reserve districts, the number and amountof assets and liabilities in each district for 1920 comparedwith the number and liabilities in 1919; also the recordfor each district for 1920 separated as to manufacturing,trading, and other commercial.

Failures in United States during 1920.

TOTAL COMMERCIAL.

District.

1920 1919


Total

ber.

8262,123

419692538597988457247375475

1,144

Assets. Liabilities. ber.

$8,111,36469,081,12810,189,729 !13,663,472 j9,918,7019,349,352 !

27,423,147 !8,006,285 i2,670,329 I8,610,102 !8,939,537 I18,540,968 !

$18,918,258 i118,850,529 !16,888,034 !14,327,557 !13,100,323 |11,657,42539,513,647 I9,456,2194,573,594 I10,190,37011,219,01026,426,839

7441,185360567355455770359149271322894

8,881 J 194,504,114 295,121,805 ! 6,451

Liabilities.

$11,884,23832,413,5386,863,575

13,329,2575,605,8325,928,220

12,717,6284,021,8611,223,9523,287,855

12,130,883

113,291,237

CLASSIFIED FAILURES, 1920.

Manufacturing.

District.

FirstSecondThirdFourthFifthSixthSeventh.. .EighthNinth .TenthEleventh .Twelfth

283835130197109105350

79557853

361

Liabilities.

$8,639,71347,075,153

9,735,0497,901,7294,656,9843,032,079

i 22,689,663f 3,906,414

2,221,6375,401,1434,775,5747,957,333

Trading.

Liabilities.

4661,094: 2591 439i 384

456! 577

355168271

j 390! 673

$6,673,45724,876,882

5,992,9975,530,3196,737,9635,657,9817,695,4205,199,0051,759,0003,838,7035,466,9899,129,631

Total 12,635 J127,992,471 |5,532 | 88,558,347

Other commer-cial.

^ ^ L i a b i l i t i e s .^

77 j $3,605,088194305645366123242632110

714

46,898,4941,159,988895,509

1,705,3762,967,3659,128,564

350, 800592,957950,524976,447

9,339,875

78,570,987


February 1921

APEIL, 1921. FEDEKAL RESERVE BULLETIN. 417


The Comptroller of the Currency reports thefollowing increases and reductions in the num-ber and capital of national banks during theperiod from February 26 to March 25, 1921,inclusive:

I Banks. I Amount.

New charters issued toWith capital of.Increase of capital approved for 1With new capital ofl

Aggregate number of new charters and banksincreasing capital

With aggregate of new capital authorizedNumber of banks liquidatingCapital of same banksNumber of banks reducing capitalReduction of capitalTotal number of banks going into voluntary

or involuntary liquidation or reducing capi-tal.

Aggregate capital reductionConsolidation of national banks und,«r the act

of Nov. 7,1918CapitalThe foregoing statement shows the aggregate of

increased capital for the period of the banksembraced in statement

Against this there was a reduction of capitalowing to liquidations, etc.;

Net decrease.

$685,000

*i,*545*o66

2,230,000

"7,'no* 666so," 666

7,760,000

6*66*666

2,230,000

7,760,000

5,530,000

* Includes one increase in capital of $150,000 incident to consolida-tion under act of Nov. 7, 1918.


While a tendency toward reduction in number of com-mercial failures has recently developed, the defaults stilllargely exceed those of this period of 1920, when thebusiness mortality was unusually moderate. For threeweeks of March the insolvencies in the United States, as

reported to R. G. Dun & Co., number 881, whereas in thecorresponding weeks of last year the number was only 368.The returns for February, tlie latest month for which com-plete statistics are available, disclose 1,641 failures for$60,852,449 of liabilities, the number being the largest onrecord for the month, excepting February of 1916 and 1915,and the indebtedness representing a new high monthlytotal. During February, 1920, there were only 492 com-mercial defaults, involving less than $10,000,000 of liabili-ties.

Failures during February.

District.

FirstSecond..ThirdFourthFifthSixthSeventh ..EighthNinthTenth . . . .EleventhTwelfth

Total .

Number.

1921

13922271

1441441752111295385

137131

1,641

1920

427523484041662815293154

492

Liabilities.

1921

$1,942,28526 836,5053,701,5263,613,2913,170,3472,920,4975 442 2072,936,1441,690,7713 993,8892,117,0682,487,919

60,852,449

1920

$557,2831 062,322

361,236697,775

1,335,730381,891

1 876,499340,110195,198484,025

1,830,522640,551

9,763,142


Since the issuance of the March BULLETINthe following banks have been authorized bythe Federal Reserve Board to accept draftsand bills of exchange up to 100 per cent oftheir capital and surplus:

Central National Bank Savings & Trust Co.,Cleveland, Ohio.

The Liberty Bank of New York, New York,N. Y.


April 1921

550 PEDEKAL RESERVE BULLETIN. MAY, 1921.

laws, are published for the information of theFederal Reserve Banks and member banks:

OKLAHOMA.

House bill No. 393, recently enacted by theOklahoma Legislature, is substantially thesame as the act recommended by the FederalReserve Board and the American Bankers7

Association to bring about greater coordinationin the powers of State and national banks andto promote uniformity in State and Federalbanking laws. The Oklahoma act reads asfollows:Be it enacted by the people of the State of Oklahoma:

SECTION 1. The words "Federal Reserve Act" hereinused shall be held to mean and to include the act ofCongress of the United States approved December 23,1913, as heretofore and hereafter amended.

The words "Federal Reserve Board" shall be held tomean the Federal Reserve Board created and describedin the Federal Reserve Act.

The words "Federal Reserve Bank" shall be held tomean the Federal Reserve Banks created and organizedunder authority of the Federal Reserve Act.

The words "member bank" shall be held to mean anynational bank, State bank, or banking and trust companywhich has become or which becomes a member of one ofthe Federal Reserve Banks created by the Federal Re-serve Act.

SEC. 2. That any bank or trust company incorporatedunder the laws of this State shall have the power to sub-scribe to the capital stock and become a member of aFederal Reserve Bank.

SEC. 3. Any bank or trust company incorporated underthe laws of the State of Oklahoma which is, or whichbecomes a member of a Federal Reserve Bank, is by thisact vested with all powers conferred upon member banksof the Federal Reserve Banks by the terms of the FederalReserve Act as fully and completely as if such powerswere specifically enumerated and described herein, andall such powers shall be exercised subject to all restric-tions and limitations imposed by the Federal ReserveAct, or by regulations of the Federal Reserve Board madepursuant thereto: Provided, however, That this sectionshall not limit the duties and powers of the bank com-missioner and the banking board to supervise, regulate,administer all State banks and trust companies nor limitthe power of the bank commissioner to declare such bankor trust company to be an insolvent institution, and totake charge thereof for the purpose of winding up itsaffairs as may now or hereafter be provided by law.

SEC. 4. A compliance on the part of any such bank ortrust company with the reserve requirements of theFederal Reserve Act shall be held to be a full compliancewith those provisions of the laws of this State whichrequire banks or trust companies to carry or maintainreserve other than such as is required under the terms ofthe Federal Reserve Act.

SEC. 5. Any such bank or trust company shall be sub-ject to the examinations required under the terms of theFederal Reserve Act, and the authorities of this Statehaving supervision over such bank may, in their discre-tion, accept such examination in lieu of the examinationrequired under the laws of this State. Such authori-ties, their agents and employees, may furnish to theFederal Reserve Board, the Federal Reserve Banks, or toexaminers duly appointed by the Federal Reserve Board,or the Federal Reserve Banks, copies of all examinationsmade, and may disclose to such Federal Reserve Board,

Federal Reserve Banks, or examiner, any informationwith reference to the condition or affairs of State banksor trust companies organized under the laws of this Statewhich become members of a Federal Reserve Bank, orwhich apply for membership in a Federal Reserve Bank.

SEC. 6. Any bank or trust company incorporated underthe laws of this State which is or which becomes a memberof the Federal Reserve Bank shall not be limited in itsborrowing or re discounting with the Federal ReserveBank of which it is a member.

SEC. 7. All acts and the parts of acts inconsistentherewith are hereby repealed.

INDIANA.

House bill No. 40, recently enacted by theIndiana Legislature, amended the laws ofthat State relating to loan, trust, and safedeposit companies so as expressly to authorizesuch companies—to purchase and hold, for the purpose of becoming amember of a Federal Reserve Bank, so much of the cap-ital stock thereof as will qualify it for membership insuch reserve bank, pursuant to an act of Congress ap-proved December 23, 1913, entitled the "Federal Re-serve Act;" to become a member of such Federal ReserveBank, and to have and exercise all powers, not in conflictwith the laws of this State, which are conferred uponany such member by the Federal Reserve Act.

Commercial Failures Reported.The wide margin of increase in commercial failures in

the United States, as compared with the exceptionally lowmortality of 1920, continues in evidence, 1,043 defaultsbeing reported to R. G. Dun & Co. during three weeks ofApril, as against only 337 in the corresponding period oflast year. For the month of March, the latest month forwhich complete statistics are available, the returns dis-close 1,336 insolvencies for $67,408,909 of liabilities. Thesefigures are not only greatly in excess of the 566 defaultsfor $12,699,325 in March, 1920, but the number is thelargest for that particular month since 1916, while theindebtedness is the heaviest on record for any one monthwhatever. Separated according to Federal Reserve dis-tricts, the March statement discloses numerical increasesin all instances in comparison with that of March of lastyear, the differences being marked in practically all cases.'The liabilities are, moreover, larger in every district, thisexhibit being especially unfavorable.

Failures during March.

District.

First.SecondThirdFourthFifthSixthSeventhEighth.NinthTenthEleventhTwelfth

Total

Number.

1921

882486388

123152138108276698

137

1,336

1920

5413933633634643118111964

566

Liabilities.

1921

$8,259,99930,836.8321,082,4102,767,3842,918,4602,397,3903,438,8055,273,193

703,5714,189,7982,702,5832,838,475

67,408,909

1920

$866,3046,213,228

644,375553,082464,017382,988

1,420,313524,242209,55842,557

203,4451,175,216

12,699,325


May 1921

698 FEDERAL RESERVE BULLETIN. JUNE, 1921.


The following list shows the State banks and trustcompanies which have been admitted to membership inthe Federal Reserve System during the month of May, 1921.

One thousand five hundred eighty-four State insti-tutions are now members of the system, having a totalcapital of $552,809,045, total surplus of $526,827,174, andtotal resources of $10,216,727,588.

District No. 1.

Inman Trust Co., Cambridge, Mass

District No. 5.

Northeast-Tacony Bank, Philadelphia,'Pa :

District No. 5.

Farmers Bank, Belhaven, N. CBank of Lunenburg (Inc.), Kenbndge,

VaPotomac Valley Bank, Petersburg, W.

VaPalmetto Bank and Trust Co., Flor-

ence, S. CFarmers & Merchants Bank, Walter-

boro, S. C

District No. 6.

Monroe County Bank, Monroeville, Ala.Bank of Eastman, Eastman, GaFarmers & Merchants Bank, Girard, Ga.Farmers & Merchants Bank, McDon-

ough, GaBank of Zebulon, Zebulon, Ga

District No. 8.

Bank of Marvell, Marvell, Ark.Bank of Waldron, Waldron, ArkCitizens Bank, Tunica, MissBank of Henning, Henning, Tenn

District No. 9.

Citizens State Bank, New Ulm, Minn.,The State Bank of Townsend, Town-

send, MontFarmers State Bank, Fullerton, N. Dak.

District No. 11.

First State Bank, Emhouse, TexJosephine State Bank, Josephine, Tex..Guaranty State Bank, Killeen, TexFirst State Bank, Murchison, TexFirst State Bank, Richland, TexGuaranty State Bank, Robstown, Tex.First State Bank, Streetman, TexFirst State Bank, Teague, TexFirst State Bank, West, TexYoakum State Bank, Yoakuin, Tex

District No. IS.

W. G. Jenkins & Co., Mackay, Idaho...Farmers State Bank, New Plymouth,

IdahoAlbany State Bank, Albany, OregBank of Wasco, Wasco, OregZillah State Bank, Zillah, Wash

Capital.

$200,000

200,000

25,000

50,000

46,205

100,000

100,000

60,00060,00025,000

100,00025,000

50,00060,00075,00025,000

100,000

100,00025,000

30,00030,00030,00025,00025,00050,00025,00050,00050,000100,000

50,000

25,00050,00025,00025,000

Surplus.

$50,000

55,826

7,500

70,000

500

17,000

30,000

30,0003.0001,250

12,35020,000

8,00020,00027,5007,500

100,000

10,0001,000

20,0006,000

3,00020,000

20,0005,000

50,000

10,000

10,00010,00025,0001.000

Total

$1,064,638

256,271

192,873

511,703

164,186

658,318

707,579

536,474267,70049,371

266,863238,926

306,760324,015

1,188,615302,575

2,374,431

671,067113,612

153,923118,20387,530100,232185,443422,027161,342522,279289,709

1,454,931

428,931

339,308793,956425,64371,719

WITHDEAWAL.

Bank of Amityville, Amityville, N. Y.

VOLUNTARY LIQUIDATION.

First State Bank, Colorado, Tex.

CONSOLIDATION.

The Oakland County Savings Bank, Pontiac, Mich., has consolidatedwith the Pontiac Commercial & Savings Bank, Pontiac, Mich.


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from April 30 to May 27,1921, inclusive:

New charters issued toWith capital of.Increase of capital approved forWith new capital ofAggregate number of new charters and banks in-

creasing capitalWith aggregate of new capital authorizedNumber of banks liquidatingCapital of same banksNumber of banks reducing capitalReduction of capitalTotal number of banks going into voluntary or in-

voluntary liquidation or reducing capitalAggregate capital reductionConsolidation of national banks under the act of

Nov. 7,1918Capital

The foregoing statement shows the aggregate of in-creased capital for the period of the banks em-braced in statement

Against this there was a reduction of capital owingto liquidations, etc

Net decrease.

Banks.

19

Amount.

$1,425,000

1,240,000

2,665,000

*4,*345,"666

0

4,345,000

6

2,665,000

4,345,000

1,680,000


While a tendency toward some reduction in the country'sbusiness mortality has recently developed, the 960 failuresreported to R. G. Dun & Co. during three weeks of Maylargely exceeded the 377 insolvencies of the correspondingperiod of last year. The returns for April, the latestmonth for which complete statistics are available, disclose1,487 commercial defaults for $38,567,769 of liabilities, anincrease of 151 in number, in comparison with the 1,336failures of March of this year, but a reduction of nearly$29,000,000 from the high-record indebtedness of thatmonth. Aside from March, the April insolvencies are thesmallest in number of any montn since last November,while the liabilities are the lightest of the present year.Comparing with the low mortality of April of 1920, now-ever, sharp increases appear in both respects, and the fail-ures are larger in number in all of the twelve FederalReserve districts. With two exceptions—the seventhand ninth districts—the indebtedness is also heavier inevery case.

Failures during April,

District.

FirstSecondThirdFourthFilthSixthSeventh.. . .EighthNinthTenthEleventh...Twelfth.. . .

Total

Number.

1921

145229104118154136178115395098

121

1,487

1920

51117243614363914163216109

504

Liabilities.

1921

$1,746,69910,471,2322,227,6314,366,7883,334,5911,997,3503,949,1152,427,872593,718

1,966,7782,905,8472,580,148

38,567,769

1920

$982,3202,865,153278,334352,946

361,8334,551,640200,207681,330628,450100,582

2,132,890

13,224,135


June 1921


under entirely without regard to the limitationsof section 13. Section 13 expressly prohibitsa member bank from having outstanding atany one time acceptances in excess of 50 percent of its capital and surplus, except thatthe Federal Reserve Board may authorize amember bank to accept up to 100 per cent ofits capital and surplus. While, in the Board'sopinion, the liability incurred upon a letter ofcredit should not be treated as a liability sub-ject to the 50 per cent or 100 per cent limita-tion, nevertheless a member bank should notobligate itself to accept drafts under a letter ofcredit to such an amount that it is reasonableto anticipate that the aggregate amount ofacceptances issued under that letter and out-standing at any time, together with otheracceptances which may be outstanding, willexceed at any one time the limitation to whichthe member bank is subject.

Amendment to the Federal Reserve Act.

Senate bill 86, amending section 25 (a) ofthe Federal Reserve x\ct, was approved by thePresident June 14, 1921. The text of the act,which is known as Public Act No. 17, 67th Con-gress, is as follows:

AN ACT To amend the Act approved December 23,1913, known asthe Federal Reserve Act.

Be it enacted by the Senate and House of Representatives ofthe United States of America in Congress assembled, Thatsection 25 (a) of the Federal Reserve Act, being thesection added to said Act by the Act approved December24, 1919, be amended so that the first sentence of theparagraph prescribing the amount of capital stock acorporation organized under that section is required tohave and prescribing also the manner in which suchcapital stock must be paid in, said paragraph being thefourth paragraph following subparagraph (c) of saidsection, shall read as follows:

"No corporation shall be organized under the provisionsof this section with a capital stock oi less than $2,000,000,one-quarter of which must be paid in before the corpora-tion may be authorized to begin business, and the remain-der of the capital stock of such corporation shall be paidin installments of at. least 10 per centum on the wholeamount to which the corporation shall be limited asfrequently as one installment at the end of each succeed-

ing two months from the time of the commencement ofits business operations until the whole of the capitalstock shall be paid in: Provided, however, That whenever$2,000,000 of the capital stock of any corporation is paidin the remainder of the corporation's captial stock or anyunpaid part of such remainder may, with the consent ofthe Federal Reserve Board and subject to such regulationsand conditions as it may prescribe, be paid in upon callfrom the board of directors; such unpaid subscriptions,however, to be included in the maximum of 10 per centumof the national bank's capital and surplus which a nationalbank is permitted under the provisions of this Act to holdin stock of corporations engaged in business of the kinddescribed in this section and in section 25 of the FederalReserve Act as amended: Provided further. That no suchcorporation shall have liabilities outstanding at any onetime upon its debentures, bonds, and promissory notesin excess of ten times its paid-in capital and surplus.

Approved, June 14, 1921.


Some narrowing of the margin of increase over last year'sfailures is noted, but the 893 defaults reported to R. G.Dun & Co. during three weeks of June largely exceed the431 insolvencies of the same period of 1920. The returnsfor May, the latest month for which complete statistics areavailable, disclose 1,356 commercial failures for $57,066,471of liabilities, as compared with only 547 defaults for$10,826,277 in May, last year. With three exceptions, theinsolvencies of May, this year, are the largest in number onrecord for the month, but a single failure supplied nearlyone-third of the aggregate indebtedness. Separation ofthe May statement by Federal reserve districts shows thatmore defaults occurred in every instance than in thatmonth of 1920, while only in the fourth district were theliabilities smaller.

District.

FirstSecond- . .ThirdFourthFifthSixthSeventh.. .EighthNinthTenthEleventhTwelfth

Total

Failures during

N u m b e i

1921

97222

69102

99148169101

596792

131

1,356

May.

1920

52133

37424144601318161576

547

Liabilities.

1921

$2,783,06611,172,4951,516,8941,969,2312,657,7644, 750,4235,624,522

20,612,0581,203,3961,073,2191,851, 7741, 851,629

57,066,471

1920

$376,5862,413, 5911,085,1822,544,2731,577,684

715,555692,45061,243

163,487179,251168,165848,810

10, 826,277


July 1921

962 FEDERAL RESERVE BULLETIN. AUGUST, 1921.

Commercial Failures Reported.The wide margin of increase in failures over last year's

relatively low mortality continues in evidence, the 917commercial defaults reported to R. G. Dun & Co. duringthree weeks of July comparing with only 384 insolvenciesfor the same period of 1920. The returns for June, thelatest month for which complete statistics are available,disclose 1,320 failures, involving $34,639,375 of liabilities.In point of number there is a sharp contrast with the 674defaults of June, 1920, but the liabilities then closelyapproximated $33,000,000. Excepting in April, insol-vencies have decreased in number in each month of thecurrent year, but all of the 12 Federal Reserve districtsreport more failures for June than for the correspondingmonth of 1920. In the second, eighth, and twelfth dis-tricts, however, the liabilities are less than in June lastyear, and notably so in the second and twelfth districts.

Failures during June.

Districts.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenthEleventh...Twelfth

Total.


1921

1362327198821301401023173105120

1920

55164266537306934212235116

1921 1920

$2,546, 8794, 736,6851,939,4084,744, 4871,478,5123, 522, 5114,476,2831,974,278454,553

4,764,6472,588, 7871,412,345

2,2,

783,684218,230219,092975,973314,156459, 562742, 755283,002306,250281,255278,668128,338

1,320 i 674 34,639,375 32,990,965


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from June 25 to July 29,1921, inclusive:

New charters issued toWith capital ofRestored to solvencyWith capital ofIncrease of capital approved for l

With new capital ofAggregate number of new charters, banks restored

to solvency, and banks increasing capitalWith aggregate of new capital authorizedNumber of banks liquidatingCapital of same banks vNumber of banks reducing capital2

Reduction of capitalTotal number of banks going into voluntary or in-

voluntary liquidation or reducing capitalggregate capital reduction

y qAggregate capital reductionConsolidation of national banks under the act of

Nov. 7, 1918Capital

The foregoing statement shows the aggregate of in-creased capital for the period of the banks em-braced in statement

Against this there was a reduction of capital owingto liquidations, etc

Net increase.

Banks. Amount.

$4,185,000

61,785,000

295,970,000

***966,*666100,000

1, 060,000

""966," 666

5,970,000

1,060,000

4,910,000

1 Includes one increase in capital of $175,000 incident to consolidationunder act of Nov. 7,1918.

2 Includes one reduction in capital of $100,000 incident to a consolida-tion under act of Nov. 7, 1918.


August 1921


cial banks. One of the great evils of the oldsystem was that banks counted as part oftheir reserve deposits items which had beensent to their reserve agents but which werestill in the process of collection. To this extentthe so-called reserves were not available forany purpose but were merely part of theintangible float. If Federal Reserve Bankscredited the reserve accounts of their memberbanks immediately upon receipt of the items,without regard to the time required for col-lection, this evil would be perpetuated and tothat extent the purpose of the Federal ReserveAct would be defeated.

For the reasons above stated Federal ReserveBanks do not give credit for demand bill-of-lading drafts until the proceeds have beencollected.


While some narrowing of the margin of increase hasrecently occurred, commercial failures still largely exceedthose of last year, when the business mortality was un-usually moderate. For three weeks of August, reportsto R. G. Dun & Co. show 1,047 defaults in the UnitedStates, as compared with 459 during the correspondingperiod of 1920. The returns for July, the latest month forwhich complete statistics are available, disclose 1,444insolvencies, involving $42,774,153 of liabilities. Inpoint of number, the July failures are 763, or 112 percent, larger than the 681 defaults of that month last year,while the indebtedness is greater by $20,800,000, or 95.3per cent. Separation of the July statement by Federalreserve districts shows more insolvencies in every instancethan in July, 1920, and only in the fifth district are theliabilities less than those of the earlier year. The mostpronounced increase in amount involved is in the seconddistrict, although relatively large gains appear in thefirst, fourth, sixth, seventh, eighth, and eleventh dis-tricts.

FAILURES DURING JULY.

District.


Total.

Number.

1921

9423072167124138222942748114114

1,444

1920

48172295439327028143441120

681

Liabilities.

1921

$2,124,07718,342,7521,254,3614,200,3401,565,8561,968,0974,565,3891,545,874425,042

1,056,5343,778,0981,947; 733

42, 774,153

1920

$470, 25911,438,511

755,711921,988

1,995,634443,135

2,417,40196,040238,471548,910

1,148,6141,431,738

21,906,412


increases and reductions in the number and' capital ofnational banks during the period from July 30 to August26, 1921. inclusive:

New charters issued toWith capital ofRestored to solvencyWith capital ofIncrease of capital approved forWith new capital ofAggregate number of new charters, banks restored

to solvency, and banks increasing capitalWith aggregate of new capital authorizedNumber of banks liquidating l

Capital of same banksNumber of banks reducing capitalReduction of capitalTotal number of banks going into voluntary or in-

voluntary liquidation or reducing capitalAggregate capital reductionConsolidation of national banks under the act of

Nov. 7,1918Capital

The foregoing statement shows the aggregate of in-creased capital for the period of the banks em-

•V braced in statementAgainst this there was a reduction of capital owing

to liquidations, etc

Net increase..,

Banks. Amount.

SI, 270,000

0

' "295,'666

1,565,000

" '356,* 666

0

350,000

'6bb',bb"v

1, 565,000

350, 000

1,215,000

1 Includes one'expiration of charter.


September 1921

1200 FEDERAL RESERVE BULLETIN. OCTOBER, 1921.

stance thereof the drafts represented advance-ments made by the associations to the growersrather than partial payments of the purchaseprice of the commodities delivered to theassociations. Although the Board was notasked at that time to rule upon the particularquestion raised by the tobacco growers' co-operative marketing association, the Board did,in order to define the scope of its ruling, inti-mate that the drafts then under consideration,although not trade acceptances, would beeligible as agricultural paper, provided thatthe drawers discounted the drafts at their localbanks and used the proceeds for agriculturalpurposes, and provided, also, that the draftscomplied in other respects with the require-ments of the law and the Board's regula-tions.

A further consideration of the subject hasconfirmed the Board in the views expressed inits former ruling, and the Board ruled, there-fore, that in its opinion drafts, with maturitiesnot in excess of 6 months, drawn by the grow-ers, accepted by the tobacco growers' coopera-tive marketing association, and discounted bythe growers with their indorsements, in accord-ance with the statement of facts herein con-tained, would be technically eligible for re-discount at Federal Reserve Banks as agri-cultural paper when offered by member banks,provided that the growers use the proceeds ofthe drafts for agricultural purposes, and pro-vided, also, that the drafts comply in otherrespects with the requirements of the law andthe Board's regulations.

As indicated in the ruling headed " Purpose oforiginal negotiation determines eligibility andclassification of paper," published simultane-ously with the present ruling, if the draftsdrawn by the growers had been drawn upon andaccepted by a tobacco dealer in payment fortobacco purchased under an absolute sale at aprice definitely fixed at the time of the accept-ance, the drafts would have to be classified ascommercial rather than agricultural paper.In the case under consideration, however,while the form of the transactions between thegrower and the acceptor of the drafts is a sale,in substance it is only a consignment. Thegrower rather than the association takes allthe risks incident to resale, since the associationdoes not agree to pay any fixed price, but onlysuch price as isequivalent to the average pricerealized by the association upon the sale ofall the tobacco in that particular pool. Conse-quently, the acceptance of each draft by theassociation is merely a loan of the association'scredit to the grower, rather than a payment onaccount of the purchase price of the tobacco,and the first negotiation of the draft takes place

when the grower discounts it at his local bank.This ruling is therefore believed to be entirelyconsistent with the foregoing ruling to theeffect that the original negotiation of a note ordraft determines for all time its eligibility andclassification.


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from August 27 toSeptember 23, 1921, inclusive:

New charters issuedRestored to solvencyIncreases of capital approvedAggregate of new charters, banks restored to

solvency, and banks increasing capitalLiquidationsReducing capitall

Total liquidations and reductions of capitalConsolidations of national banks under act ofNov. 7,1918

Aggregate increased capital for periodReduction of capital owing to liquidations, etc.

Net decrease

2,180,0002,705,000

50,0002,755,000

575,000

i Includes one reduction in capital of $50,000 incident to a consolidationunder act of Nov. 7,1918.


The increase in number of failures over last year's com-paratively moderate mortality continues sharply defined,ftie 994 defaults reported to R. G. Dun & Co. during threeweeks of September largely exceeding the 418 insolvenciesof the corresponding period of 1920. The returns forAugust, the latest month for which complete statistics areavailable, disclose 1,562 commercial failures, involving$42,904,409 of liabilities. Both as to number and amountthe August defaults are well below the high levels of thepresent year, but comparison with the figures of last yearstill shows largp increases, the insolvencies of August, 1920,having numbered only 673 for $28,372,895 of indebtedness.Examined according to Federal Reserve districts, theAugust statement reveals more failures than in that monthof last year in all of the twelve districts, and only in thesecond and third districts are the liabilities smaller thanthose of August, 1920.

FAILURES DURING AUGUST.

District.

First.SecondThird .FourthFifth...SixthSeventh "Eighth.NinthTenthEleventhTwelfth

Total

Number.

1921

11821668

13798

198204677275

137172

1,562

1920

5817933704042863118113372

673

Liabilities.

1921

$2,821,8419,685,6532,090,7565,183,7072,658,0174,489,4434,123,5202,200,0121,458,576

966, 8961,991, 2845,234,704

42,904,409

1920

$780,21015,009,8383,066,9141,347,045

691,7852,605,4293,177,188

288,67285,51585,735

411,027823,537

28,372,895


October 1921

1316 FEDERAL, RESERVE BULLETIN. NOVEMBER, 1921.


ADMISSIONS.

The following list shows the State banks and trust com-panies which were admitted to membership in the Fed-eral Reserve System during the month ending October 31,1921, on which date 1,626 State institutions were membersof the system, having a total capital of $584,457,142,total surplus of $528,808,084, and total resources of19,961,423,617.

District No. 5.

Carolina Banking & Trust Co., Eliza-beth City, N. C

Merchants & Producers Bank, Salem,W.Va

District No. 6.

Merchants & Farmers Bank, Roanoke,Ala

Bank of Graymont, Graymont, Ga

District No. 7.

Adams State Bank,"Chicago, 111Blissfield State Bank, Blissfield, Mich...Drexel State Bank, Chicago, 111Polo State Bank, Polo, 111Pinney State Bank, Cass City, MichState Bank of Croswell, Crosswell, Mich.

District No. 8.

First State Bank, O'Fallon, 111.

District No. 9.

Farmers & Merchants State Bank,Menahga, Minn

Capital. Surplus.

$102,142

50,000

125,000 i25,000 '

$32,000

82,5005,000

Total re-

$102,142

875,757

786,340175,847

20,000 1,331,845200,000 , _..,___ , _,__.,___50,000 I 15,000 I 733,001

350,000 i 150.00075,000 10,00050,00060,000 12,000

3 , 18,037,244472,331626.838

1,214,006

25,000 j 5,000 43,443

25,000 I 5,000 198,065

District No. 11.

Citizens State Bank, Greenville. Tex...| 100,000

District No. 12.

Pioneer Bank, Porterville, CalifThe Valley Bank, Fresno, Calif

105,000625,000

32,00062,500

312,431

1,399,5522,096,641

CHANGE IN N A M E .

First State Bank, Golden Valley, N. Dak., to FirstAmerican State Bank, Golden Valley, N. Dak.

CONVERSION.

The Mercantile Bank & Trust Co., Savannah, Ga., hasconverted into a national bank.

CONSOLIDATION.

The Charles River Trust Co., Cambridge, Mass., hasconsolidated with the Harvard Trust Co., Cambridge,Mass.

WITHDRAWALS.

Farmers Equity Bank, Brooksville, Ky.American Bank, Sidney, Nebr.Butler County State Bank, David City, Nebr.First State Bank, North Bend, Nebr.

Commercial Failures Reported,Despite some narrowing of the margin of increase, fail-

ures in the United States still largely exceed in numberthose of a year ago, the 1,135 defaults reported to R. G.Dunn & Co. during three weeks of October comparingwith only 617 insolvencies in the corresponding period of1920. The statement for September, the latest month forwhich complete statistics are available, disclose 1,466failures, involving $37,020,837 of liabilities. While thisexhibit reflects some improvement in comparison withthe returns for August, yet the number of Septemberdefaults is the largest for that month since 1914, and theindebtedness is the heaviest on record for September.Analyzed according to Federal Reserve districts, moreinsolvencies occurred in every district than in Septemberlast year, and the liabilities are also heavier in everyinstance, except in the first and second districts.

FAILURES DURING SEPTEMBER.

District.


Total

Number.

1921 i 1920

124 i317

63 :118 1

85 i125 I179 j

80 i5761

104153

7314525655444673516263691

1,466 ! 677

Liabilities.

1921 1920

37,020,837

$2,725,247 I $1,10,439,409 j 14

978,713 | I!2,815,4061,692,8402,328,7646,777,0262,383,404

980,4711,042,6412,872,2811,984,635

360,762,551,283417,524348,681646,417500,371679,728352,87399,730

466,451864,924265,544

29,554,288


The applications of the following banks for permissionto act under section 11 (k) of the Federal Reserve Actwere approved by the Board during the month endingOctober 31, 1921.

DISTRICT NO. 2.Trustee, executor, administrator, registrar of stocks and bonds, guardian

of estates, assicmee, receiver, and committee of estates of lunatics:Citizens National Bank, Wellsville, N. Y.

DISTRICT NO. 4.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, receiver, and committee of estates of lunatics:

Clark County National Bank, Winchester, Ky.DISTRICT NO. 5.


Lincoln National Bank, Washington, D. C.DISTRICT No. 7.


Indiana Harbor National Bank of East Chicago, Indiana Harbor,Ind.

DISTRICT No. 8.


First National Bank, El Dorado, Ark.First National Bank, Carlyle, 111.

DISTRICT No. 9.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver, and committee of estates of lunatics:Security National Bank, Fargo, N. Dak.


November 1921

FEDERAL RESERVE BULLETIN. £>HCEMBER, 1 9 2 1 .


ADMISSIONS.

The following list shows the State banks and trust com-panies which were admitted to membership in the FederalReserve System during the month ending November 30,1921, on which date 1,624 State institutions were membersof the system, having a total capital of $581,517,142, totalsurplus of $528,164,584, and total resources of $9,946,170,045.

$100,000

25,000

District No. 3.

The Olyphant Bank, Olyphant, Pa

District No. 4.

Peoples Savings Bank Co., Delta, Ohio.

District No. 5.

The Pleasants County Bank, St. Marys,W. Va I 50,000

Shenandoah Valley Bank & Trust Co., iMartinsburg, W. Va ! 100,000

District No. 6.

Citizens Banking Co., Eastman, GaNew Orleans Bank & Trust Co., New

Orleans, La.

District No. 8.

Arkansas Bank & Trust Co., Newport,Ark

100,000

400,000

200,000

District No. 12.

Plumas County Bank, Quincy, Calif 70,000Ritzville State Bank, Ritzville, Wash.. 25,000

Surplus. I Total

$20,000 |$1,854,861

35,000 498,758

12,000 507,922

25,000 430,284

20,000

100,000

35,000

13,0002,500

518,014

1,028,309

1,249,664

765,32727,500

LIQUIDATION.

Great Lakes Trust Co., Chicago, 111.

WITHDRAWAL.

Potlatch State Bank, Potlatch, Idaho.Magna Banking Co., Magna, Utah.

CONVEETED INTO NATIONAL BANKS.

Alliance Bank Co., Alliance, Ohio.American State Bank, Okmulgee, Okla.The First State Bank, Clinton, Okla.Guaranty State Bank, Ardmore, Okla.

IN HANDS OF STATE AUTHORITIES.

American Bank & Trust Co., Savannah, Ga.

BANKS CLOSED.

Stockmens State Bank, Browning, Mont.Bellevue Bank & Trust Co., Bellevue, Idaho.Union State Bank, Nezperce, Idaho.


Since the issuance of the November BULLETIN the fol-lowing banks have been authorized by the Federal Re-serve Board to accept drafts and bills of exchange up to100 per cent of their capital and surplus:

Merchants & Illinois National Bank, Peoria, 111.Peoples Savings Bank & Trust Co., Pine Bluff, Ark.New Orleans Bank & Trust Co., New Orleans, La.


The applications of the following banks for permissionto act under section ll(k) of the Federal Reserve Act wereapproved by the Board during the month ending Novem-ber 30, 1921:

DlSTEICT NO. 2.


Farmers National Bank, Allentown, N. J.

DISTRICT NO. 3.


Ashland National Bank, Ashland, Pa.

DISTEICT No. 5.


First National Bank, Durham, N. C.Riggs National Bank, Washington, D. C.

DISTRICT NO. 7.


Indiana National Bank, Indianapolis, Ind.

DISTRICT NO. 8.


First National Bank, Murray, Ky.

DISTRICT NO. 10.

Executor and administrator:National Bank of Gallup, Gallup, N. Mex.


The continued wide margin of increase in number offailures over last year's comparatively moderate mortalityis evidenced by the 1,341 defaults reported to R. G. Dun &Co. during three weeks of November as against 746 in thesame period of 1920. The returns for October, the latestmonth for which complete statistics are available, disclose1,713 commercial insolvencies in the United States, involv-ing $53,058,659 of liabilities. Aside from January, thenumber of October failures is the largest of any monththis year, and the indebtedness exceeds that of all monthsexcept May, March, and February. Separated accordingto Federal Reserve districts, the October statement revealsan increased number of defaults, as compared with Octo-ber, 1920, in every instance, while the liabilities are largerin 7 of the 12 districts, the exceptions being the fifth,seventh, eighth, eleventh, and twelfth districts.

FAILURES DURING OCTOBER.

District.

FirstSecondThirdFourthFifthSixthSeventh—EighthNinthTenthEleventh...Twelfth....

Total

Number.

1921

135350

77177109153230887076

109139

1,713

1920

59275

27695838

12247164142

•129

923-

Liabilities.

1921

$1,550,13717,525,6977,890,9282,613,0181,511,1415,271,1405,853,2261,117,8151,833,1032,000,1082,455,1263,437,220

53,058,659

1920

$938,59515,462,8662,902,6091,933,8861,644,702613,307

6,259,5661,280,507

83,769775,366

2,947,9574,071, ,,29

38,914,659


December 1921

JANUARY, 1922. FEDEBAlr EESERVE BULLETIN. 51

DISTRICT NO. 2.


National City Bank, New RocheUe, N. Y.

DISTRICT NO. 3.


Millville National Bank, Millville, N. J.

DISTRICT N O . 4.


First National Bank, East Liverpool, Ohio.

DISTRICT NO. 5.


Farmers & Mechanics National Bank of Georgetown, Washington,D. C.

Federal National Bank, Washington, D. C.Norwood National Bank, Greenville, S. C.American National Bank, Danville, Va.First National Bank, Koanoke, Va.

DISTRICT N O . 7.


Farmers National Bank, Shenandoah, Iowa.

DISTRICT N O . 9.


First National Bank, Alissoula, Mont.

DISTRICT N O . 10.

Trustee, executor, administrator, registrar of stocks and bonds, guar-dian of estates, assignee, receiver, and committee of estates of luna-tics:

Craig National Bank, Craig, Colo.


Some narrowing of the margin of increase in number offailures in the United States, as compared with those of ayear ago, has recently been witnessed, although the 1,687defaults reported to R. G. Dun & Co. for three weeks ofDecember materially exceed the 1,025 insolvencies of asimilar period of 1920. The statement for November—thelatest month for which complete returns are available—discloses 1,988 commercial failures, involving $53,469,839of liabilities. While the number of November defaults is

the largest for any month this year, yet the indebtednessis little above that of October and is smaller than theamounts recorded in May, March, and February. Whenthe November statistics are separated according to FederalReserve districts, it is seen that numerical increases overlast year's totals appear in all instances, while only in thefirst and second districts are the liabilities below those ofNovember, 1920.

FAILURES DURING NOVEMBER.

District.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenthEleventh -.Twelfth

Total 1,988 1,050


1921

132368102M l14320123898120100145197

1920

10528 L4766479012558373550109

1921

§2,302,1677|072,7322,944,37210,689,4373,825,4123,711,2527,651,6652,028,3403.413,5042,373,7003,484,8033,372,455

53,469,839

1920

§3,486,55810,776,9721,010,9561,113,7241,184,1051,911,9923,647,520829,889

1,235,7611,582,279S39,548

3,138,826

30,758,130


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from November 26 toDecember 23, 1921, inclusive:

New charters issuedRestored to solvencyIncreases of capital approvedAggregate of new charters, banks restored to sol-

vency, and banks increasing capitalLiquidationsReducing capitalTotal liquidations and reductions of capitalConsolidations of national banks under act of Nov.

7,1918.


Numberof

banks.

Net increase..

Amountof

capital.

§2,360,0000

260,000

2,620,0001,080,000

01,080,000

0

2,620,0001,080,000

1,540,000


January 1922

FBBKUART, 1922. FEDERAL EESEEVE 195

State Banks and Trust Companies.ADMISSIONS.

The following list shows the State banks and trust com-panies which were admitted to membership in the FederalReserve System during the month ending January 31,1922, on which date 1,632 State institutions were membersof the system:

Capital. : Surplus.

District No. 3.

Columbia County Trust Co., Blooms- jburg, Pa $125,000 j $25,000

Lcmoyno Trust Co., Lemoync, Pa 1.25,000 j SO, 000Orrstown Bank, Orrstown, Pa 25,000 : 6,000

District No. 4. • !

Commonwealth Bank & Trust Co., i

Cleveland, Ohio 250,000 j

District No. 6. . :

Macon County Bank, Tuskegee, Ala 50,000 IMerchants & Planters Bank, White- i

castle, La I 30,000 \

District No. 7. \*

The Wayne County State Bank, Cory- I

don, Iowa I 75,000 .

District No. 9. \ j

Mellette County State Bank, WhiteRiver, S. Dak 25,000 j

100,000

110,000

6,000

25,000

Total

S819,0611,105,1-10

148,552

353,160

4S5,025

115,414

377,953

500 i 110,612

Withdrawal.—Kansas Reserve State Bank, Topeka,Kans.

Insolvent.—Guaranty State Bank, Troup, Tex.; FirstTerritorial Bank, Lovington, N. Mex.

Conversion.—Merchants State Bank, Port Arthur, Tex.,has converted into a national bank.

Liquidations.—Scandinavian-American Bank, Marsh-field, Oreg.; Bank of Commerce & Trust Co., Mercedes,Tex.

Merger.—The Peoples Bank of St. Paul, Minn., hasmerged with the Central Metropolitan Bank of St. Paul,a member bank.

Fiduciary Powers Granted to. National Banks,

The applications of the following banks for permissionto act under section ll(k) of the Federal Reserve Act wereapproved by the Board during the month ending January31, 1922:

DISTRICT NO. 2.Trustee, executor, administrator, registrar of stocks and bonds, guardian

of estates, assignee, receiver, and committee of estates of lunatics:City National Bank, Binghamton, N. Y.

DISTRICT NO. 3.

Trustee, executor, administrator, registrar of stocks and bonds, guardianof estates, assignee, receiver:

First National Bank, Ocean City, N. J.. Registrar of stocks and bonds:

Central National Bank, Philadelphia, Pa.Third National Bank, Philadelphia, Pa.

DISTRICT NO. 7.

Trustee, executor, administrator, guradian of estates," assignee, receiver,and committee of estates of lunatics:

Citizens' National Dank of Princeton, 111.Trustee, executor, administrator, registrar of stocks and bonds, guardian

of estates, assignee, receiver, and committee of estates of lunatics:Security National Bank of Sheboygan, Wis.

DISTRICT NO. 9.


First National Bank, Red Wing, Minn.

DISTRICT NO. .1.0.


First National Bank of Guthrie, Okla.


The increase in number of failures in the United Statescontinues sharply defined, the J ,898 defaults reported to11. G. Dun & Co. for three weeks of January comparing with1,378 insolvencies during the corresponding period of 1921.The returns for December, the latest month for whichcomplete statistics are available, disclose 2,444 commercialfailures, involving §87,502,382 of liabilities, as comparedwith 1,525 defaults for $58,871,539 in December, 1920.Separation of the December returns by Federal Reservedistricts shows a larger number of insolvencies in everyinstance than in December, 1920, while only in the first,third, and tenth districts is the indebtedness smaller thanin the earlier year.

FAILURES DURING DECEMBER.

Districts.

First..SecondThirdFourth..FifthSixthRe'venth..EighthNinthTenth..EleventhTwelfth

Total

Number.

1921

190551124

• J802J2l«»03021-12100100107

1920

156

2,444 1

1 ft>333

767597

i ani ()?>101

4486

1?4133

525

Liabilities.

1921 ! 1920

156,671,119 ' 86,682,88336,979,329 ! 21,538,2354,176,377 4,317,2964,050,490 ; 2.210,4415,679,487 ! l.̂ 872,7006,066,401 3,125,6557,820,313 : 5,868,6773,873,516 3,030,6702,158,515 1,150,2602,152,128 i 4,748,6584,307,254 i 2 141,4623,567,453 '. 2,184,602

87,502,382 58,871,539


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from December 24, 1921,to January 27, 1922, inclusive:

N e w cha r t e r s i ssued ! 28 !«1,290J000Restored to solvency 0 j 0Increases of capital approved 26 ; 2,835,000Aggregate of new charters, banks restored to sol- I

vency, and banks increasing capital '. 54 ; 4,125,000Liquidations 14 ! 2,345,00;)Reducing capital 0 ; 0Total liquidations and reductions of capital j 14 | 2,345,000Consolidations of national banks under act of Nov. i

7,1918 2 | 450,000

Aggregate increased capital for period j 4,125,000Reduction of capital owing to liquidations, etc j 2,345,000

Net increase j 1,780,000


February 1922

MARCH, 1922. FEDERAL RESERVE BULLETIN. 317


The following list shows the State banks and trust com-panies which were admitted to membership in the FederalReserve System during the month ending February 28,1922, on which date 1,632 State institutions were membersof the system.

District No. 2.

Overpeck Trust Co., Ridgefield Park,

Globe Exchange Bankj Brooklyii*N.* Y.Midwood Trust Co., Brooklyn, N. Y . . .

District No. 8.

Peoples Savings & Dime Bank, Scran-ton, Pa

District No. 6.

Polk County Trust Co., Lakeland, Fla..

District No. 8.

Montgomery County Loan & Trust Co.,Hillsboro,Ill

Southern Commercial & Savings Bank,St. Louis, Mo -

District No. 9.

Daly Bank & Trust Co., Anaconda,Mont

District No. 11.

First State Bank, Bedias, TexIola State Bank, Iola, Tex

Total re-sources.

$100,000 I $25,000 $125,000200,000 I 40,000 2,026,284500,000 j 250,000 ! 2,097,207

700,000 I 450,000 HO, 813,148

300,000 j i 438,119! !

100,000 50,000 I 650,215

200,000 i 50,000 I 2,745,536

100,000

i, 000i.000

100,000 I 2,731,029

|5,000 ! 103,4175,000 j 104,626

Withdrawal.—Hillsboro State Bank, Hillsboro, Ind.Converted into national banks.—City Trust & Savings Bank, Grand

Rapids, Mich.; First State Bank, Locust Grove, Okla.; State Bank ofEnumclaw, Enumclaw, Wash.; Mercantile Trust Co., New York, N. Y.

Insolvent bank.—Woodville State Bank, Woodville, Tex.Voluntary liquidation.—Rideout Bank, Marysville, Calif.Merger.—Long Beach Trust & Savings Bank, Long Beach, Calif.,

and Guaranty Trust & Savings Bank, Los Angeles, Calif., with SecurityTrust «fe Savings Bank, Los Angeles, Calif., a member bank.

Fiduciary Powers Granted to National Banks.The applications of the following banks for permission

to act under section 11 (k) of the Federal Reserve Actwere approved by the Board during the month endingFebruary 28, 1922:

DISTRICT No. 2.Trustee, executor, administrator, registrar of stocks and bonds, guard-

ian of estates, assignee, receiver, and committee of estates of lunatics:Hudson County National Bank, Jersey City, N. J.National Exchange Bank, Carthage, N. Y.Mercantile National Bank, New York, N. Y.

DISTRICT NO. 5.

Trustee, executor, administrator, guardian of estates, assignee, receiverand committee of estates of lunatics:

First National Bank, Holly Hill, S. C.Trustee, executor, administrator, registrar of stocks and bonds, guard-

ian of estates assignee, receiver, and committee of estates of lunatics:First National Bank, St. Marys, W. Va.

DISTRICT NO. 6.

Trustee, executor, administrator, registrar of stocks and bonds, guard-* ian oi estates, assignee, receiver, and committee of estates of lunatics:

American National Bank, West Palm Beach, Fla.First National Bank, Barnesville, Ga.First National Bank, Gulfport, Miss.

DISTRICT NO. 7.

Trustee, executor, administrator, registrar of stocks and bonds, guard-ian of estates, assignee, receiver, and committee of estates of lunatics:

Galesburg National Bank, Galesburg, 111.First National Bank, Elwood, ind.American National Bank, Racine, Wis.


First National Bank, Colfax, Iowa.

DISTRICT NO. 8.Trustee, executor, administrator, guardian of estates, assignee, receiver,

and committee of estates of lunatics:National Bank of Berild, Benld, 111.


American National Bank, Mt. Carmel, 111.

DISTRICT NO. 10.

Guardian of estates, assignee, receiver, and committee of estates oflunatics:

First National Bank, Kansas City, Mo.


Current statistics disclose a continued increase in num-ber of failures in the United States over those of a year ago,the 1,820 defaults reported to R. G. Dun & Co. for threeweeks of February comparing with 1,186 in the correspond-ing period of 1921. The returns for January, the latestmonth for which complete figures are available, show2,723 commercial insolvencies for 873,795,780, as against1,895 failures, with liabilities of $52,136,631, in January,1921. In point of number, the defaults of January, thisyear, are the largest of any month since January* 1915,but the indebtedness, although much above the monthlyaverage, reveals a considerable reduction from the high-record total of $87,500,000 in December, 1921.

Separated according to Federal Reserve districts, theJanuary statistics disclose more defaults in every instancethan in that month of 1921, while only in the first andfourth districts arc the liabilities less, than those of theearlier period.

FAILURES

District-

FirstSecondThirdFourthFifthSixthSoventh..EighthNinth...TenthEleventhTwelfth

Total

DURING JANUARY.

Number.

1922

209429136242233283362177109112207224

2,723

1921

18339096

1331421952221264882

155123

1,895

Liabilities.

1922

$2,600,44222,885,7542,561,5596,238,3034,696,0365,012,931

10,314,3584,013,0922,597,6373,400,4304,326,5945,148,644

73,795,780

1921

$3,841,1149,808,6232,183,9086,661,9133,887,9084,054,4369,182,5232,370,168

583,8581,767,2863,359,8714,435,023

52,136,631

New National Bank Charters.The Comptroller of the Currency reports th • following

increases and reductions in the number and capital ofnational banks during the period from January 28, 1922,to February 24, 1922, inclusive:

: Num- Amountberof of

; banks. | capital.

New chaters issued ••Restored to solvency •Increases of capital approved i ;Aggregate of new charters, banks restored to sol- ;

vency, and banks increasing capitalLiquidationsReducing capitalTotal liquidations and reductions of capitalConsolidations of national banks under act of Nov. :

7,1918Aggregate increased capital for period iReduction of capital owing to liquidations, etc '

,§1,245,000! oI 7,960,000

9,205,0001,575,000

90,0001,665,000

750,0009,205,0001,665,000

Net increase . . . . ! 7,540,000

* Includes one increase in capital of $50,000, incident to a consolidationunder act of Nov. 7,1918.


March 1922

APRIL, 1922. FEDERAL. RESERVE BULLETIN. 431


The list following shows the State banks and trust com-panies which were admitted to membership in the Federalreserve system during the month ending March 31, J 922,on which date 1,638 State institutions were members ofthe system.

District No. 5.

The Forest Hill State Bank, ForestHill, Md

District No. 6.

Peoples Bank & Trust Co., Selma, Ala.Citizens Bank of Barnesville, Barnes-

ville, GaBank of Hoschton, Iloschton, Ga

District No. 8.

Lawrence County Bank, WalnutRidge, Ark

Greenfield Bank, Greenfield, Tenn

District No. 9.

State Bank of Anoka, Anoka, MinnSecurity State Bank, "Wanamingo,

Minn

District No. 11.

Farmers Guaranty State Bank, Stephen-ville, Tex

Total

S6,500 ; $215,-J 50

30,000 : 737,627

2J2,38366,17.r)

35,000 I 862,514' 218,359

923,118

208,836

513,097

Converted into national banks.—'Bank of Lemooro, Lcmoore, Calif.;Rittenhouso Trust Co., Philadelphia, Pa.; Texas Bank & Trust Co.,Beaumont, Tex.

Insolvent.—First Guaranty State Bank, Collinsville, Tex.

Commercial Failures Reported.Despite a recent tendency toward improvement, fail-

ures in the United States are still largely in excess of thoseof last year: the 1,693 defaults reported to 11. G. Dun & Co.during* three weeks of March comparing with 881 for thecorresponding period of 1921. Thie returns for February,the latest month for which complete statistics are available,disclose 2,331 commercial insolvencies for $72,608,393 ofliabilities, as against 1,641 failures, involving $60,852,449,in February, 1921. Separated according to Federal reservedistricts, the February statement shows a larger number ofdefaults than in that month of last year in all instances,while only in the second, third, tenth, and twelfth dis-tricts is the indebtedness less than that of February, 192.1.

FAILURES DURING FEBRUARY.

Districts.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenthEleventh...Twelfth.. . .

Total

Number.

1922

206300932352132702881679799207156

2,331

1921

1392227114-11441752111295385137131

1,611

Liabilities.

1922 1921

80,235,27121,202,8582,436,4024,627,0384,761,7445,331,0507,876,9314,653,2312,300,8142,006,4805,889,1432,287,431

SI, 942,28526,836,5053,701,5263,613,2913,170,3472,920,4975,442,2072,936,1441,690,7713,993,8892,117,0682,487,919

60,852,449


During the month of March the Federal Reserve Boardapproved applications of the national banks listed belowfor permission to exercise one or more of the fiduciarypowers named in section ll(k) of the Federal reserve actas amended, as follows:

1. Trustee.2. Executor.3. Administrator.4. Registrar of stocks and bonds.5. Guardian of estates.6. Assignee.7. Receiver.8. Committee of estates of lunatics.9. In any other fiduciary capacity in which State

banks, trust companies, or other corporations which comeinto competition with national banks are permitted toact under the laws of the State in which the national bankis located.

The numerals opposite the name of each bank indicatethe power or powers it is authorized to exercise, as givenbelow:

Place.

Spring Valley, N. Y.Smyrna, Del

Philadelphia, P a . . .Philadelphia, Pa . . .Warren, Ohio ,

Butler, PaRaleigh, N. CEJloree, S. CCopperhill, Tenn..

Danville, 111Martinsville, l n d . .Whiting, lndHampton, Iowa..LeMars, Iowa.. .Mascoutah, 111...Quincy, 111Evansville, lnd . .Faribault, Minn.Virginia, Minn. .Hooker, Ok la . . .Longviow, Tex . .

Dis-trictNo.

910 !11

Name of bank.

First National BankFruit Growers N a t i o n a l

Bank.Market Street National Bank.Rittenhouse National Bank. .Western Keservc National

Bank.Farmers' National BankCommercial National Bank . .First National BankFirst National Bank of Polk

County.Palmer National BankFirst National BankFirst National BankCitizens National BankFirst National BankFirst National BankQuincy National BankNational City BankSecurity National BankAmerican National BankFirst National DankFirst National Bank

Powersgranted.

Ito9.Ito4,6to9.

1 to 7 and 9.Ito9.1 to 7 and 9.

Ito9.Ito9.1 to 9.1 to 3,5 to 8.

Ito9.1 to 7.1 to 7.1 to 9.5 to 9.1 to 9.1 to 9.Ito9.1 to 9.1 to 3,5 to 8.1 to 3 and 5.1 to 3,5 to 8.


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from February 25, 1922,to March 24, 1922, inclusive:

New charters issued ,Restored to solvency ,Increases of capital approved ,Aggregate of new charters, banks restored to sol-

vency, and banks increasing capitalLiquidationsReducing capital1

Total liquidations and reductions of capitalConsolidations of national banks under act of Nov.

7, 1918


Amountof

capital.

S3,420,0000

520,000

31 ! 3,910,000" 1,36.7,000

275,0001,6i0, 000

1,100,000

.1 3,940,000

.! 1,640,000

Net increase j 2,300,000

i Includes two reductions in capital aggregating $225,000, incident toconsolidations under act of Nov. 7,1918.


April 1922

MAT., 1922. FEDERAL RESERVE BULLETIN. 571


The following list shows the State banks and trust com-panies which were admitted to membership in the Federalreserve system during the month ending April 30, 1922,on which date 1,642 State institutions were members ofthe system.

Capital.

District No. 4.

State Banking & Trust Co., Cleveland, jOhio

Farmers & Merchants Bank Co., Syl-vania, Ohio

District No. 5, I

The Peoples Trust Co., Martinsburg,W . V a . . ..,

Farmers Bank of Pendleton, Frank- ilin, W.Va

District No. 6.Bank of Winter Park, Winter Park,

FlaBank of Madison, Madison, GaPendergrass Banking Co., Fender-

grass, GaDistrict No. 7.

Fletcher Savings & Trust Co., Indian-apolis, Ind

District No. 8.Farmers State Bank, New Athens, 111.Planters Bank & Trust Co., Ruleville,

MissNorthwestern Trust Co., St. Louis,

MoScruggs, Vandervoort & Barney

Bank, St. Louis, MoDistrict No. U.

Citizens Bank, Portland, Oreg i

5750,000

50,000

200,000

50,000

40,000100,000

25,000

.1,500,000

25,000

100,000

500,000

200,000

200,000

§225,000 1 §11,746,011

16,000 j1 567,126

102,500 1,562,724i

50,000 I 616,978

10,00075,000

4,000

501,199416,945

72,782

250,000 I 16,526,517

iI 82,068

10,000 • 207,856

200,000 8,595,320

1,378,418

1,000 • 2,220,847

Converted into national banks.—Peoples State Bank, Enumclaw, Wash.;Farmers & Merchants State Bank, Kenedy, Tex.; First.State Bank &Trust Co., Kenedy, Tex., Guaranty Bank & Trust Co., Dallas, Tex.

Consolidation.—American Bank & Trust Co. and Liberty Bank &Trust Co., both of New Orleans, La., under name of American LibertyBank& Trust Co.

Merger.—North. Side Bank, Brooklyn ,N. Y., has merged with Manu-facturers Trust Co., Brooklyn, N. Y.

Voluntary liquidation.—Bank of Santa Monica, Santa Monica, Calif.Withdrawal.—Cambria Bank (Inc.), Cambria, Va.


increases and reductions in the number and capital ofnational banks during the period from March 25, 1922, toApril 21, 1922, inclusive:

New charters issuedRestored to solvencyIncreases of capital approvedAggregate of new charters, banks restored to sol-

vency, and banks increasing capital

LiquidationsReducing capital

Total liquidations and reductions of capitaConsolidations of national banks under act of No

7,1918


Net increase.

Num-ber ofbanks.

Amountof

capital.

$2,790,0000

3,841,000

6,631,000

1,665,000250,000

1,915,000

4,000,000

6,631,0001,915,000

4,716,000

Fiduciary Powers Granted to National Banks.During the month of April the Federal Reserve Board

approved applications of the national banks listed belowfor permission to exercise one or more of the fiduciarypowers named in section 11 (k) of the Federal reserve actas amended, as follows:

1. Trustee.2. Executor.3. Administrator.4. Registrar of stocks and bonds.5. Guardian of estates.6. Assignee.7. Receiver.8. Committee of estates of lunatics.9. In any other fiduciary capacity in which State banks,

trust companies, or other corporations which come intocompetition with national banks are permitted to actunder the laws of the -State in which the national bank islocated.


Place.

Honesdale, PaPhiladelphia, Pa..San dusky, OhioWilmington, Ohio.

Monessen,PaLeesburg, VaBeckley, W.Va...Troy, AlaDecorah, IowaDubuque, IowaStevens Point, Wis.Sioux Falls, S. Dak.Seattle, Wash ,

Dis-trictNo.

Name of bank.

3 Honesdale National Bank3 Bank of North America4 Third NationalExchangeBank.4 Clinton County National Bank..

Peoples National BankPeoples National BankBeckley Nation al BankFirst National BankNational Bank of Decorah.,Dubuque National Bank...First National BankAlinnehaha Nationa IBank.University National Bank.

Powersgranted.

1 to 9.Ito9.Ito9.2,3,5 to7, and 9.1 to 8.Ito9.Ito9.1.5 to 9.Ito9.Ito8.5 to 8.Ito9.

Commercial Failures Reported.While failures in the United States still largely exceed

those of last year in number, some narrowing of the margin.of increase has recently been witnessed, and the 1,563 com-mercial defaults reported to R. G. Dun & Co. during threeweeks of April compare with 1,043 for the correspondingperiod of 1921. The returns for March, the latest monthfor which complete statistics are available, discloses 2,463insolvencies, with liabilities of $71,608,192. In point ofnumber, the March failures are the largest, excepting the2,723 defaults of January of the current year, of any monthback to January, 1915, and on only one previous occasion—in 1915—have the March insolvencies reached the 2,000mark in number. On the other hand, the March in-debtedness, although well above the monthly average, isless than the amounts reported for each of the three imme-diately preceding months.

FAILURES DURING MARCH.

Distriet.Number. I Liabilities.

1922 1921 • 1922 j 1921

FirstSecondThirdFourthFifthSixthSeventh...Eighth. . . .NinthTenthEleventh..Twelfth...

Total 2,463

21747896

202215221336173103100107215

88 $8,086,696 j218 ! 14,656,044 |63 : 6,84~8,734 j

4,159,463 i3,787,5505,559,98613,189,3102,529,5413,764.6021,720,1462,121,7255,204,365

123 '152 i138 '108 I27 !

137

1,336 I 71,608,192

$8,259,99930,'"*" """

k1;082,419767,384918,460397,390438,805273,193703,571189,798702,583838,475

67,408,909

102784—22 6


May 1922

700 FEDERAL, RESERVE BULLETIN". JUNE, 1922.


The following list shows the State banks and trust com-panies which were admitted to membership in the Federalreserve system during the month ending May 31,1922, ojiwhich date 1,648 State institutions were members of thesystem.

Capital. I Surplus.

• District No. o.

Bank of Victoria (Inc.), Victoria, Va

District No. 6.

Farmers & Merchants Bank, Hurtsboro,Ala

Middle Georgia Bank, Eatonton, GaPeoples Bank, Crystal Springs, MissBank of Haltiesburg & Trust Co., Hatties-

burg, MissDistrict No. 7.

Iowa Loan & Trust Co., FairQeld ;Iova...Farmers State Savings Bank, Milford,

MichDistrict No. 8.

Savings Trust Co., St. Louis, MoDistrict No. 10.

Jamestown State Bank, Jamestown,Kans

District No. 11.Blooming Grove State Bank, Blooming

Grove, TexFarmers State Bank, Olney, Tex

District No. 12.Columbia Valley Bank, "Wenatch.ee, WashCommercial Bank & Trust Co., "WenatchcoWash

I!

,$30,000 ! $9,000

31,400 10,00050,000 50,00025,000 2,500

100,000 33,000

50,000 12,500

50,000 I 7,500

200,000 50,000

25,000

50,00030,000

100,000

100,000

25,000

5,0006,000

25,000

50,000

Totalresources.

$360,928

121,708532,95427,500

1,040,003

93,626

280,116

1,812,203

319,844

175,360100,631

1,853,229

1,592,704

Converted into national banks.—Guaranty Bank & Trust Co., Beau-mont, Tex.; Passaic Trust & Safe Deposit Co., Passaic, N. J.

Voluntary liquidations.—Farmers Bank Co., Pandora, Ohio; Farmers& Merchants Savings Bank, Logan, Utah; Fanners & Merchants Bank,Idaho Falls, Idaho; Union State Bank, Nezpcrce, Idaho.

Withdrawal.—Clay County State Bank, Louisville, 111.


increases and reductions in the number and capital ofnational banks during the period from April 22 to May 26,1922, inclusive:

Now charters issuedRestored to solvencyIncreases of capital approvedAggregate of new charters, banks restored to sol-

vency, and banks increasing capital

Liquidations .Reducing capital1

Total liquidations and reductions of capital..Consolidations of national banks under act of Nov.

7y1918

Aggregate increased capital for periodReduction of capital owing to liquidations, etc

Net increase

Num-ber ofbanks.

293

18

50

133

16

3

Amountof

capital.

$2,990,000325,000

1,760,000

5,075,000

1,415,000365,000

1,780,000

3,150,000

5,075,0001,780,000

3,295,000

1 Includes 2 reductions in capital aggregating 8350,000 incident to con-solidations under act of Nov. 7, 1918.

Fiduciary Powers Granted to National Banks.During the month of May the Federal Reserve Board

approved applications of the national banks listed belowfor permission to exercise one or more of the fiduciarypowers named in section 11 (k) of the Federal reserve actas amended, as follows:

1. Trustee.2. Executor.3. Administrator.4. Registrar of stocks and bonds.5. Guardian of estates.(L Assignee.7. Receiver.8. Committee of estates of lunatics.9. In any other fiduciary capacity in which State banks,

trust companies, or other corporations which come intocompetition with national banks are permitted to actunder the laws of the State in which the national bank islocated.

The numerals opposite the name of each bank indicate thepower or powers it is authorized to exercise, as given below:

Place.

Providence, R. IBelleville, N. JPassaic, N. J

Palerson.N. JLyndhurst, N. JNcwburgh, N. YPort Henry, N. Y . . . .Potsdam, N. YMount El oily, N. J . . . .Lehighton, JPaMahanoy City, PaFrederick, Md

Dis-trictNo.

Name of bank. Powersgranted.

Blucfield, W. Va iTorre Haute, Ind iWaterloo, Iowa ;Cofleyville, Kans \Wichita, Kans jSheridan, Wyo :Silver City, N. Mcx...'Clarksville, Tex !Houston, Tex ISan Francisco, Calif..

1 National Bank of Commerce2 i Peoples National Bank2 : Passaic National Bank &

Trust Co.2 ' Totowa National Bank2 First National B ank ,2 Nationa 1B ank of N ewburgh.2 Citizens National B ank2 Citizens National Banlc.3 Mount Holly National Bank.3 Citizens' National Bank3 ! First National Bank

Frederick County NationalBank.

Flat Top National Bank...7 Terre Haute National Bank7 First National Bank ,

10 ! Condon National Bank10 j Fourth National Bank ,10 i Sheridan National Bank11 ' American National B ank11 •• First National Bank11 I State National Bank ,12 American National Bank....

j 1 to 9.• 1 to 9.; 1 to 9.

! 1 to 5, 7 to 9.I I to9 .

1 to 9.1 to 9.1 to 9.

j I t o 8! 1 to 9.| 1 to 9.; 1 to 9.

I to3,5to9.1 to 9.1 to 7.1 to 3, 5 to 9.

j 1 to 9.! 1 to 3, 5 to 9.

2 and 3.1 to 3, 5 to 8.1 to 9.1.

Commercial Failures Reported.A further narrowing of the margin of increase in number

of failures over those of last year has recent ly been wit-nessed, a l though the 1.358 defaults reported to R. G. B u n& Co. during three weeks in May considerably exceed t he960 insolvencies of the same period of 1921. T h e re turnsfor. April , t he latest mon th for which complete statist icsare available, disclose 2.167 commercial failures i n t h eUni ted States, wi th aggregate l iabili t ies of about$73?OOO3OOO.

F A I L U R E S D U R I N G A P R I L .

District.

FirstSecond.ThirdFourthFifthSixthSeventhEighthNinthTenthEleventhTwelfth

Total

Number.

1922 1921

165 ; 145420 268

78 , 65156 118148 : 154264 : 136281 ; 17812011666

167183

2,167

115395098

1211,487

Liabilities.

1922

$2,403,84033,677,5261,468,3432,840,8443,277,9066,557,398

10,909,8372,244,4442,268,6581,937,3953,865,3011,607,145

73,058,637

1921

31,746,69911,123,0881,575,7754,366,7883,334,5911,997,3503,949,1152,427,872

593,7181,966,7782,905,8472,580,148

38,567,769


June 1922


[PUBLIC—No. 279.—67TH CONGRESS.]

[S. 831,]

An act to amend the proviso in paragraph 10 of section 9 of the FederalReserve Act amended by the act of June 21,1917, amending the FederalReserve Act.

Be it enacted by the Senate and House of Representativesof the United States of America in Congress assembled, Thatthe proviso in paragraph 10 of section 9 of the FederalReserve Act amended by section 3 of the act of June21,1917, amending the Federal Reserve Act be amendedto read as follows:

"Provided, however, That no Federal reserve bank shallbe permitted to discount for any State bank or trustcompany notes, drafts, or bills of exchange of any oneborrower who is liable for borrowed money to such Statebank or trust company in an amount greater than thatwhich could be borrowed lawfully from such State bankor trust company were it a national banking association."

Approved July 1, 1922.

Amendment to National Bank Act.

The following bill amending section 5136 ofthe Revised Statutes has been passed by bothHouses of Congress and approved by thePresident and is now law:

[PUBLIC—No. 262.—67TH CONGRESS.]

[H. R. 9527.3

An act to amend section 5136, Revised Statutes of the United States,relating to corporate powers of associations, so as to provide succes-sion thereof for a period of ninety-nine years or until dissolved, andto apply said section as amended to all national banking asso-ciations.

Be it enacted by the Senate and House of Representativesof the United States of America in Congress assembled, Thatsection 5136 of the Revised Statutes of the United Statesbe amended so that the paragraph therein designated as"Second" shall read as follows:

"Second. To have succession until ninety-nine yearsfrom July 1, 1922, or from the date of its organization iforganized after July 1, 1922, unless it shall be sooner dis-solved by the act of its shareholders owning two-thirds ofits stock, or unless its franchise shall become forfeited by

reason of violation of law, or unless it shall be terminatedby act of Congress hereafter enacted."

SEC, 2. That all acts or parts of acts providing for theextension of the period of succession of national bankingassociations for twenty years are hereby repealed, and theprovisions of paragraph second of section 5136, RevisedStatutes, as herein amended shall apply to all nationalbanking associations now organized and operating underany law of the United States.

Approved July 1, 1922.

Commercial Failures Reported.While commercial failures in the United States still

considerably exceed in number those of last year, themargin of increase is narrowing and the 1,254 defaultsreported to R. G. Dim & Co. for three weeks of June com-pare with a total of 893 for the corresponding period of1921. The statement for May, the latest month for which,complete returns are available, discloses 1,960 insolvenciesfor $44,402,886 of liabilities, as against 1,356 failures for$57,066,471 in May last year. In point of number, thedefaults in May this year are less than in any previousmonth since last October, while the indebtedness is thelightest in eight months. Separated according to Federalreserve districts, the May statistics show more insolvenciesthan in that month of 1921 in all districts except theeleventh district,, but the fifth, sixth, seventh, and eighthdistricts report smaller liabilities.

FAILURES DURING MAY.

District.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenthEleventh...Twelfth....

Total

Number.

1922

18641987173169179231117797084166

1,960

1921

972226910299148169101596792131

.1,356

Liabilities.

1922 i 1921

$3,476,746 !

16,605,2331,568,262 !

3,359,0732,544,963 •3,784,262 j4,254,855 ',1,750,033 i1,342,341 '1,294,560 •2,175,351 •:2,247,207 ;

783,066172,495516,894969,231657,764750,423624,522612,058203,396073,219851,774851,629

44,402,886 . 57,066,471


July 1922

AUGUST, 1022. FEDERAL RESERVE BULLETIN". 921

Cotton, cattle, lumber, pig iron, coke, andcoal show a marked rise in price. Slightincreases ha,ve also taken place in hides,leather, tobacco, cement, silk, and yarns.Prices of grains have dropped decidedly, whilenonferrous metals have remained unchanged.

The Bureau of Labor Statistics index rose inJune to 150, an increase of 2 points. Thelargest gains among groups of commoditiesare fuel and lighting (9 points) and buildingmaterials (7 points). Foods, cloths and cloth-ing, and metals also increased. Farm productsfell 1 point, while chemicals and house furnish-ing goods did not change,

FOREIGN TRADEi.

The official returns for June disclose a sub-stantial gain over the preceding month in thevalue of exports, while a somewhat smallerincrease is reported for imports. Specifically,exports rose from $308,000,000 in May to$334,000,000 in June, and for the same monthsimports increased from $253,000,000 to$260,000,000. The excess of exports overimports for June amounted, therefore, to$74,000,000, which is larger than the exportbalance in any previous month since lastOctober, with the exception of April, when thebalance was approximately $100,000,000. Inthe fiscal year ending with June, exports werevalued at $3,770,000,000, as compared with$6,517,000,000 in the previous fiscal year.This reduction by nearly 50 per cent in thevalue of our export trade is partly accountedfor by the lower price level prevailing in1921-22. There has nevertheless been amaterial shrinkage in the volume of ouroverseas trade. Imports have also diminishedin value, the total for the fiscal year just closedbeing $2,608,000,000 as against $3,654,000,000in 1920-21.


During the month of July the Federal Reserve Boardapproved applications of the national banks listed belowfor permission to exercise one or more of the fiduciary-powers named in section 11 (k) of the Federal reserve actas amended, as follows:


trust companies, or other corporations which come intocompetition with national banks are permitted to actunder the laws of the State in which the bank is located.


Place.

Larchmont. N. Y. . .New York,N.Y....Riverton, N.J

Philadelphia, Pa. . .

Stroudsburg, Pa

Lexington, Ky

Raleigh, N. CAurora, 111Freeport, 111Washington, Iowa..

Corning, ArkColumbia, KySedalia, MoBismarck, N. Dak...Durango, ColoOkanogan, Wash...Rosalia, Wash

Dis-trictNo.

223

3

3

4

57778889

101212

Name of bank.

Larchmont National BankLincoln National Bank....Cin n amin son National

Bank.Southwestern National

Bank.Stroudsburg Nat ional

Bank.Phoenix National Bank

& Trust Co.Citizens National Bank...Merchants National Bank.Second National BankWashi n gton Nat ional

Bank.First National Bank

doThird National BankFirst National BankBurns National BankFirst National BankWhitman County National

Bank.

Powers,granted.

1 to 9.1 to 9.Ito9.

1 to 8.

1 to 9.

1 to 9.

1 to 9.1 to 9.Ito9.5 to 8.

1 to9.1 to 3, 5 to 8.1 to 3, 5 to 7.1 and 9.1 to 7.1 to 9.1 to 9.


ADMISSIONS.

The following list shows the State banks and trustcompanies which were admitted to membership in theFederal Reserve System during the mo.nth ending July 31,1922, on which date 1,655 State institutions were membersof the system:

i Capital.

District No. 3. j

Ilightstown Trust Co., Hightstown, N. J. j 8100,000

District M. 6. j

Planters Bank, Carlton, Ga \ 25,000Farmers Bank of Crawford, Crawford, ;

Ga ! 100,000Bank of Locust Grove, Locust Grove, :

Ga j 25,000

Surplus.

$16,000

3,000

Total

S319,853

92,732

50,000 | 544,317

5,000! 129,722

Consolidation and change of name.— The First State Savings Bank,Evart, Mich., a member bank, and the Evart Savings Bank of Evart,a nonmember bank, have consolidated under the name of Evart StateBank, which continues membership.

Converted into national banks.—Northwestern State Bank, Bcllingham,Wash.; First State Bank, Garfield, Wash.; Citizens Bank, Emporia, Va.

Insolvent.—Sfcockmens State Bank, Browning, Mont.Withdrawals.—Midwest Reserve Trust Co., Kansas City, Mo.; Battery

Park Bank Asheville, N. C.Change of name.—Jenkintown Trust Co., .Tenkintown, Pa., to Jenkin-

town Bank & Trust Co.; Old Dominion Trust Co., Richmond, Va.,to State & City Bank & Trust Co.


A further narrowing of the margin of increase in numberof failures over those of last year has recently been wit-nessed, the 1,205 defaults reported to R. G. Dun & Co.during three weeks of July comparing with a total of 985for the corresponding period of 1921. The returns forJune, the latest month for which complete statistics areavailable, disclose 1,740 commercial insolvencies in the


August 1922

922 FEDERAL, RESERVE BULLETIN. AUGUST, 1.922.

United States for $38,242,450 of liabilities. The numberof June failures is less than that of all months since lastOctober, though being considerably in excess of the 1,320defaults of June, last year, and the indebtedness is thesmallest of all months back to last September. In June,1921, the liabilities aggregated $34,839,375. Separatedaccording to Federal reserve districts, the June statementreveals numerical increases, as compared with last year'sreturns, in all districts except the third district, while theindebtedness is larger in the first, second, fifth, seventh,ninth, and twelfth districts.

FAILURES DURING JUNE.

Number.

District,

Liabilities.

1922 | 1921 | 1922 '

FirstSecondThirdFourth. . . .FifthSixthSeventh...Eighth. . . .NinthTenthEleventh..Twelfth...

150273

571361371472301257986

114206

1921

Total • 1,740

136 ; $4,888,902 I S2,546,879232 ! 7,642,247 ! 4,736,685

71 1,573,360 j 1,939,40898 3,521,377 ! 4,744,48782 2,183,739 j 1,478,512

130 2,041,013 ; 3,522,511140 i 6,369,831 I 4,476,283102 ! 1,525,233 i 1,974,27831 i 1,307,894 ! 454,55373 ! 2,149,987 . 4,764,647

105 2,481,679 | 2, 588,787120 2,557,188 1,412,345

1,320 ; 38,242,450 34,639,375


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from June 24 to July 28,1922, inclusive:

New charters issuedRestored to solvencyIncreases of capital approved

Aggregate of new charters, banks restored tosolvency, and banks increasing capital

LiquidationsReducing capital i

Total liquidations and reductions of capital

Consolidations of national banks under act of Nov.7,1918

Aggregate increased capital for periodReduction of capital owing to liquidations, etc

Net increase

Num-ber ofbanks.

150

46

61

193

22

3

Amountof

capital.

§1,210,0000

6,534,850

7,744,850

2,825,0002,065,000

4,890,000

11,025,000

< 7,744,8504,890,000

2,854,850

1 Includes 1 reduction in capital aggregating §2,000,000 incident to con-solidation under act of Nov. 7,1918.


Since the issuance of the July BULLETIN the followingbanks have been authorized by the Federal ReserveBoard to accept drafts and bills of exchange up to 100 percent of their capital and surplus:

Republic National Bank, Dallas, Tex.-Central National Bank, Richmond; Va.

Chattanooga Discontinued as Reserve City.

Effective August 1, the designation of Chattanooga as areserve city has been terminated.

INTERNATIONAL PRICE INDEXES.

The French Index Number,1

The fourth in the scries of wholesale priceindexes, being constructed by the Federal Re-serve Board for purposes of international com-parison, traces the course of prices in Francefrom January, 1920, up to the present time.The indexes previously published in this series,those for the United States, Great Britain, andCanada, include 1919, but the industrial dis-organization which prevailed in France in thatyear made it impractical to compute the Frenchindex before the beginning of 1920.

The purpose of this series of index numbersis to provide a more accurate means of com-paring changes in the level of wholesale priceson an international basis, by constructingprice indexes for several different countries ac-cording to a uniform plan, thus eliminatingany variations in the series which might bedue to differences in construction. The methodwhich has been used in the construction of theFederal Reserve Board's price indexes has beenexplained in previous issues of the BULLETIN.2

Each index in this series is a weighted arith-metic average of from 90 to 100 price quota-tions for about 70 commodities. The weightsrepresent the quantity of production and tradefor each commodity in 1913 in the country towhich the index applies; for example, the in-dexes of "goods imported" represent the rela-tionship of the quantity of goods imported in1913 at their prices in that year to the samequantity of goods at their prices in 1920 and thesucceeding years. When this method of weight-ing was chosen it was recognized that importantchanges had occurred in the quantity of pro-duction and trade since 1913, but it was feltthat the situation in that year was more nearlyt}^pical of the normal industrial life of thecountries concerned than in any year sincethat time. Another and very important reasonfor using the 1913 figures as weights is thatcomplete production figures are not availablefor any postwar year.

The "All commodities indexes" representthe successive values of "goods produced" plus"goods imported." Six group indexes areregularly published for each country, givingprice variations for (1) raw materials, (2) pro-ducers7 goods, (3) consumers7 goods, (4) goodsimported, (5) goods produced, and (6) goodsexported. The weights for each one of thesegroups have been checked, wherever possible,

1 Prepared under the direction of F . M. Williams, of the Division ofAnalysis and Research, with the assistance of R. P . Cornwall.

2 See FEDERAL RESERVE BULLETIN, May, 1920; June, 1920; June, 1921;February, 1922; May, 1922; and July, 1922.


August 1922



The following list shoves the State banks and trustcompanies which were admitted to membership in theFederal Reserve System during the month ending August31,1922, on which date 1,654 State institutions were mem-bers of the system:

District No. 2.

Bank of New York, New York,N.Y

District No. 3.

York Trust Co., York, Pa

District No. 6.

Union Banking Co., Monroe, Ga...

Capital. I Surplus, j

§2,000,000 ! 16,000,000 i $72,730,995| !I i

300,000 I 165,000 ' 2,901,010

60,000 I 20,000 ! 191,381

Voluntary liquidation.—Briscoe County State Bank, Silverton, Tex.Merger.—Commercial Trust & Savings Bank, Santa Barbara, Calif.;

Bank of Santa Maria, Santa Maria, Calif.; and Fidelity Trust & Sav-ings Bank, Fresno, Calif., have merged with the Los Angeles Trust &Savings Bank, Los Angeles, Calif., a member bank.

Change of name.—The Lincoln Savings Bank & Trust Co., Louisville,Ky., to the Lincoln Bank & Trust Co.


While failures in the United States still considerablyexceed in number those of last year, the margin of increaseis narrowing steadily, with the 1,164 defaults reported toR. G. Dun & Co., during three weeks of August com-paring with 1,047 in the corresponding period of 1921.The returns for July, the latest month for which completestatistics are available, disclose 1,753 commercial insol-vencies, involving $40,010,313 of liabilities. As to num-ber, the July failures are materially in excess of the totalof 1,444 in July of last year, but the indebtedness is lessthan the $42,774,153 of the earlier period. Separatedaccording to Federal reserve districts, the July statementreveals more defaults than in July, 1921, in all instancesexcept the fourth, eighth and eleventh districts, whilethe second, tenth, eleventh and twelfth districts alonereport smaller liabilities. The decrease in the seconddistrict, however, is very marked, and accounts for thereduced total for all districts for the month.

FAILURES DURING JULY.

District.

! Number.

FirstSecondThirdFourthFifthSixthSeventhEighthNinthTenthEleventh.. .Twelfth. . . .

Total

i 1922_

1,753

1921

1303848616315017324987606164146

9423072167124138222942748114114

1,444

Liabilities.

1922

$2,393,5658,035,6621,676,7735,164,1642,349,5392,157,71311,484,8321,721,0831,142,174891,386

1,230,5811,762,841

40,010,313

1921

$2,124,07718,342,7521,254,3614,200,3401,565,8561,968,0974,565,3891,545,874425,042

1,056,5343,778,0981,947,733

42,774,153


During the month of August the Federal Reserve Boardapproved applications of the national banks listed belowfor permission to exercise one or more of the fiduciarypowers named in section 11 (k) of the Federal reserve actas amended, as follows:




Place.Dis-trictNo.

Boston, MassNewton, N. JDolgcvillo.N.Y..Mount Kisco.

N.Y.Now York, N.Y..Lebanon, PaPainesville, Ohio.j

Emporia, Ya 'Louisville, Ga....!Bloomi ngton, Ind.Frankfort ,Ind.. .!Shelby\-ille, Ind..\Council Bluffs, .

Iowa |Mason City, Iowa.l•Madison, Nebr...'San Francisco, '

Calif. i

Name of bank.

National Union BankMerchants National BankFirst National BankMount Kisco National Bank.

Public National BankLebanon National BankPainesville National Bank...

Citizens National BankFirst National BankFirst National Bank ,American National BankFirst National Bank

City National BankFirst National BankMadison National BankAnglo & London-Paris Na-

tional Bank.

Powersgranted.

5 to 9.I to9.l td 9.I to9.

I to9.1 to 9.2, 3, 5 to 7,

and 9.1 to 9.I to9.1 to 7 and 9.I to8.I to9.

5 to 8.I to9.1 to 7 and 9.I to9.


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from July 29 to August25, 1922, inclusive:

Num- | Amounti ber of ! of1 banks, j capital.

New charters issued.Restored to solvencyIncreases of capital approved.

4 I $275,0000 0

19 1,866,500

Aggregate of new charters, banks restored tosolvency, and banks increasing capital

LiquidationsReducing capital1..

Total liquidations and reductions of capital..

Consolidations of national banks under act of Nov.7,1918

Aggregate increased capital for periodReduction of capital owing to liquidations, etc..

Net decrease

23 | 2,141,500

9 i 4,175,0001 ! 25,000

10 ! 4,200,000

1 j 100,000

2,141,5004,200,000

2,058,500

1 Includes 1 reduction in capital aggregating §25,000 incident to con-solidation under act of Nov. 7,1918.


September 1922

1170 FEDERAL RESERVE BULLETIN. October, 1922.

Fiduciary Powers Granted to National Banks*

During the month of September the Federal ReserveBoard approved applications of the national banks listedbelow for permission to exercise one or more of the fiduciarypowers named in section 11 (k) of the Federal reserve actas amended, as follows:

1. Trustee.2. Executor.3. Administrator.4. Registrar of stocks and bonds,5. Guardian of estates.6. Assignee.•7. Receiver.8. Committee of estates of lunatics.Q. In any other fiduciary capacity in which State banks,



Place,Dis*trict

! No.Name of bank. ! Powers

: granted.

Plattsburg, N. YSyracuse, N. Y..Savanna, 111Fairmont, Minn.Truman, Minn..Atchison, Kan$-.

Merchants National Bank 1 to 9.tiil)«t7 National Bank 1 to 9.First National Bank 1 to 8.Martin County National Bank 1 to 9.Truman National Bank 1 to 9.City National Bank.. 1 to 9.


Numbering 1,072 during three weeks of September, asagainst 979 for a similar period of 1921, failures reported toR. G. Dun & Go. make a closer comparison with the figuresof the previous year than has been the case for a long timepast. The returns for August, the latest month for whichcomplete statistics are available, disclose 1,714 commercialdefaults for $40,279,718 of liabilities. These totals com-pare with 1,562 insolvencies for $42,904,409 in August, 1921,and an i:aci;eas$cl number of failures occurred last month in8 of the 12 Federal reserve districts. The exceptions arethe first district, where no change at all developed, and thesixth,, ninth, arid eleventh districts, which reported reduc-tions of 46, 3, and &2 defaults* 'respectively. As regardsthe August indebtedness, the amounts are smaller in mostinstances, decreases being noted in the first, second, fourth,fifth, sixth, ninth, and twelfth districts. These reduc-tions, however, are largely offset-by an increase of fully$3,000,000 ity tfre eleventh district, due to one failure ofexceptional size.

FAILURES DURING AUGUST.

District.


Number.

To:al 1. 714

1922

118269

76156134152243135699585

182

1921

11821668

13798

198204677275

137172

Liabilities.

1922

SI,556,0397,364,3292, 735,6373,574.1482, 253,7482,890,8916,776, 8672,347,687888,750

1,963.1195,198,2942,730,209

1921

821,841685,653090, 75(3183,707658,017489,443123,520200,012458,576966,896991,284234, 704

1,562 40,279,718 j 42,904,409


The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from August 26 to Sep-tember 22, 1922, inclusive:

Num- I Amountber of j ofbanks, j capital.

New charters issuedRestored to solvencyIncreases of capital approved.

Aggregate of new charters, banks restored tosolvency, and banks increasing capital 20

LiquidationsReducing capital..

Total liquidations and reductions of capital..

Consolidations of national banks under act of Nov.7, 1918

Aggregate increased capital for period..Reduction of ---••L-1 -—•-—-- i*-.-^-*..capital owing to liquidations, etc

Net decrease

$930,son25,000

1,005,000

1,960,800

1,785,000325,000

2,110,000

1,960,8002,110,000

149,200


Since the issuance of the September BULLETIN the fol-lowing bank has been authorized by the Federal ReserveBoard to accept drafts and bills of exchange up to 100 percent of its capital and surplus:

New York Life Insurance & Trust Co., New York, N. Y.


October 1922

NOVMMBHB, 1922. FEDERAL RESERVE BULLETIN. 1285


Admissions.

The following list shows the State banks and trust com-panies which were admitted to membership in the Federalreserve system during the month ending October 31, 1922,on which date 1,657 State institutions were members ofthe system:

ICapital. | Surplus.

District No. 1. j

Federal Trust Co., Boston, Mass . . . . ! SI, 500,000 I

District Xo. 2. I '

Westwopd Trust Co.,West\vood,NT..T. 100,000 ! 820,000

Bank of Europe, New York, N. Y . . 450,000 | 225,000

District No. 8. j \

Greenwood Bank & Trust Co., | •

Greenwood, Miss ; 200,000 ! />(), 000

District Mo. 12. j j

Cowlitz Valley Hank, Kelso, Wash..! 30, 000 | 10,000

$20,300,992

138,0087,806,302

955,607

207,582

Absorbed by State member bank.—Metropolitan Trust Co. and the BackBay National Bank, both of Boston, Mass., absorbed by the FederalTrust Co. of Boston.

Change in name— Gandy State Bank, South WhiUey, Ind., to MayorState Bank, South Whitley, Ind.

Voluntary liquidation.—Hank of Murtaugh, Martangh, Idaho.


During the month of October the Federal ReserveBoard approved applications of the national banks listedbelow for permission to exercise one or more of the fidu-ciary powers named in section ll(k) of the Federal reserveact as amended, as follows:




Place.1 Dis-j trict

No.

I

Marietta, OhioSpringfield, Ohio.

Rocky Mount; N. C IWashington, 1 >. C |Delphi, ind jEast St. Louis, 111 jLawrence, Kans j

Kansas City, Mo...Do

Long Beach, Calif.

San Antonio, Tex..

Name of bank.

Citizens National Bank . •Mad River National j

Bank.Planters National Bank.;Second National Bank.. ICitizens National Bank .'Security National Bank. IMerchants N a t i o n a l j

Bank. ;Gate City National Bank.jContinental National

Bank and Trust Co. ;Long Beach National :

Bank. \Frost National Bank....

Powersgranted.

1 to 7 and 9.1 to 7 and 9.

1 to 9.1 to 8.I to9.1 to 9.I to8.

1 to9.I to9.

I to9 .

1 to 9.

New National Baiiak Charters.

The Comptroller of the Currency reports the followingincreases and reductions in the number and capital ofnational banks during the period from September 23, toOctober 27, 1922, inclusive:

Now charters issuedRestored to solvencyincrease of capital approved l

Num-ber ofbanks.

Aggregate of now charters, banks restored tosolvency, and banks increasing capital

LiquidationsReducing capital2..

Total liquidations and reductions of capital. . .'• 12

ioiLS of national banks under act of Nov. ." 3

Amountof

capital.

£1,265,00025,000

1,085,000

2,355,000

850,000575,000

1,425,000

7, 1918..

Aggregate increased capital for periodReduction of capital owing to liquidations, e tc .

Net i ncrease

2,300,000

2,355,0001,425,000

930,000

1 includes one increase in capital of $50,000 incident to a consolidationunder act of Nov. 7, 19IS.

* Includes t>vo reductions tn capital aggregating §475,000 incident toconsolidations under act of Nov. 7, J'J1S."S

Commercial Failares Reported.

In point of number, failures in the United States nowmake a closer comparison with the totals of a year ago,1,215 defaults being reported to R. G. Dun & Co. duringthree weeks of October, as against .1,135 for the corrspond-ing period of 1921. The returns for September, the latestmonth for which complete statistics arc available, disclose1,560 commercial insolvencies for about $36,900,000 ofliabilities. Both as to number and amount, this is thebest monthly exhibit for a year past, and the Septemberindebtedness is slightly less than that of the same monthof last year. Separated according to Federal reserve dis-tricts, the reductions in number of failures, as comparedwith the number for September, 1921, are reported by thefirst, third, sixth, ninth, eleventh, and twelfth districts,although these decreases are more than offset by the in-creases in the other six districts. In respect of the liabil-ities, the September totals are smaller than those of thecorresponding month of last year in the first, seventh,ninth, tenth, and eleventh districts, the improvement inthe seventh and eleventh districts being especially marked.

FAILURES DURING SEPTEMBER.

Liabilities.

SI, 479,19812,209,811i, 1.07,6803,848,5354,269,4532,705,0-413,863,88-12,41.7,725

575,947738,243

1,480,2222,152,387

1921

82,725,247.10,439,409

978,7.1.32,815,4061,692,8402,328,7646,777,0262,383,404

980,47.11,042,6412,872,2811,984,635

Total 1,566 \ 1,466 36,908,126 | 37,020,837


November 1922

22981_1920-1924

Documents

branch banks

thebranch bank

parent bank

mercantile bank

eachmember bank

branch bank territory

federal reserve board

foreign banks