FEDERAL RESERVE BULLETIN OCTOBER 1939 Effects of War on American Markets Compilation of Laws Relating to Branch Banking Distribution of Demand Deposits by Economic Classes BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM CONSTITUTION AVENUE AT 20TH STREET WASHINGTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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FEDERAL RESERVEBULLETIN
OCTOBER 1939
Effects of War on American Markets
Compilation of Laws Relating to BranchBanking
Distribution of Demand Deposits byEconomic Classes
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
CONSTITUTION AVENUE AT 20TH STREET
WASHINGTON
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TABLE OF CONTENTS
Page
Review of the month—Effects of war on American markets 839-845National summary of business conditions 846-847Summary of financial and business statistics 849Law Department:
Rulings of the Board:Transfers from savings accounts to F. H. A. Mortgage accounts without presentation of pass books 850Payment or renewal of certificate of deposit maturing on Sunday 850Payment of interest on savings account after death of depositor 851
Trust indenture Act of 1939 851Compilation of Federal and State laws relating to branch banking within the United States 851-870
Distribution of demand deposits by economic classes of depositors 1933, 1935, and 1936 871-874Member bank earnings and expenses, first half of 1939 874-875Condition of insured banks in the first half of 1939 '_ 876-877Revised indexes of factory employment adjusted for seasonal variation 878-888Financial, industrial, and commercial statistics, United States:
Member bank reserves, Reserve bank credit, and related items 890Federal Reserve bank statistics 891-895Reserve position of member banks; deposits in larger and smaller centers 896Money in circulation 897Gold stock and gold movements; bank suspensions; bank debits 898All banks in the United States 899All member banks 900-901Condition of reporting member banks in leading cities 902-905Acceptances, commercial paper, and brokers' balances 906Federal Reserve bank discount rates 907Money rates and bond yields 908Security markets 909Treasury finance 910-911Governmental corporations and credit agencies; Postal Savings System 912-913Production, employment, and trade 914-922Wholesale prices 923Crop report 924Statistics for Federal Reserve chart book 925
International financial statistics:Gold reserves of central banks and governments 928Gold production 929Gold movements 929-930International capital transactions of the United States 931-933Central banks 934-937Bank for International Settlements 938Money rates 938Discount rates of central banks 939Commercial banks 939-940Foreign exchange rates 941Price movements:
Wholesale prices 942Retail food prices and cost of living 943Security prices 943
Federal Reserve directory:Board of Governors and staff; Open Market Committee and Staff; Federal Advisory Council 946Senior officers of Federal Reserve banks; managing directors of branches 947
II
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FEDERAL RESERVE BULLETINVOL. 25 OCTOBER, 1939 No. 10
Effects of war onAmerican markets
REVIEW OF THE MONTH
War in Europe resulted in abrupt pricechanges and sharp increases in activity in the
commodity and financialmarkets of this country.
Prices of basic com-modities advanced in September, reflectingchiefly heavy purchases by manufacturersand distributors, but to some extent also spec-ulative activity by traders. Buying was par-ticularly marked for such products as ironand steel, nonferrous metals, and textiles,and was largely by domestic purchasers inanticipation of possible price advances anddelayed deliveries. Inquiries from abroad,particularly from neutrals, showed a markedincrease in some lines, but in others the pros-pect for exports was adversely affected. In anumber of industries new orders were suffi-cient to bring about an accelerated increasein plant operations. This rise, coupled withincreased oil output after sharp curtailmentin August, carried the Board's index of in-dustrial production from 102 for the monthof August to about 110 for the month of Sep-tember, with a still higher level prevailing atthe end of the month. Employment and na-tional income increased substantially but, asis usual, expanded less rapidly than industrialactivity.
Prices of many common stocks rose rap-idly in September, while prices of UnitedStates Government securities and high-gradecorporate bonds, which had reached recordlevels in the early part of the summer and hadreceded somewhat from those levels, declinedsharply. The Federal Reserve System, inpursuance of its policy of endeavoring tomaintain orderly conditions in the capital
markets, increased its holdings of UnitedStates Government obligations.
At no time was the shock of the war to ourfinancial and industrial system comparable tothat in 1914 when the Stock Exchange andmany commodity exchanges were forced toclose, large currency withdrawals and goldexports obliged banks to operate on a re-stricted basis, and business activity declined.During the past month exchanges remainedopen, bank deposits and reserves increased,and commodity prices and business activityadvanced sharply. Gold continued to flowinto the United States in large volume untillate in the month. Dollar prices of manyforeign currencies showed sharp reductions.
The Federal Reserve System increased itsholdings of United States Government securi-
ties by about $400,000,000 inOpen-market the two weeks ending Septem-operations _.
ber 13, and by a small addi-tional amount in the following week. Hold-ings of bonds and notes increased somewhatmore than this amount, since part of the ma-turing Treasury bills were not replaced.
On September 20 the total amount of Gov-ernment obligations in the System Open Mar-ket Account was at a new high level of$2,826,000,000. Between June 21 and Au-gust 30 the Open Market Committee had fol-lowed the policy of not replacing all maturingTreasury bills, with the consequence that thetotal amount of securities in the accountdiminished by about $140,000,000, leaving acorrespondingly larger volume of bills in thehands of holders other than Federal Reservebanks. Changes in the types of securitiesheld in the System Account are shown in thefollowing table:
839
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840 FEDERAL RESERVE BULLETIN OCTOBER 1939
UNITED STATES GOVERNMENT SECURITIES HELD BYTHE FEDERAL RESERVE BANKS
Total
BondsNotesBills
[In millions of dollars]
Sept. 20,1939 1
2,826
1,3091,245
272
Aug. 30,1939
2,426
9121,179
335
June 21,1939
2,564
9111,176
477
1 Includes some Government guaranteed issues.
As a result of open-market purchases ofsecurities by the Reserve banks, further goldimports from abroad, and expenditures ofthe Treasury from its cash holdings andbalances with the Reserve banks, excess re-serves of member banks increased and onSeptember 20 were at a new high level of$5,300,000,000.
On September 1 the Board issued the fol-lowing statement:
Advances tomember andnonmember banks
"The Board of Governorsof the Federal Reserve Sys-tem announces that in viewof current developments in
the international situation, the FederalReserve banks are prepared at this timeto make advances to member and non-member banks on Government obliga-tions at par at the rates prevailing formember banks."
This announcement assured member andnonmember banks that the Federal Reservebanks would make advances up to the fullamount of the par or face value of Govern-ment obligations and on the same terms fornonmember as for member banks. Followingthis announcement the Federal Reserve Banksof Boston, Atlanta, Chicago, St. Louis, Kan-sas City, and Dallas reduced their rates onadvances made to member and nonmemberbanks on United States Government obliga-tions from 11/2 to 1 per cent, the rate at theNew York bank. At other Reserve banksthe rate is IV2 P e r cent- Since banks havenot experienced any drain of funds, there hasbeen no demand for advances on Governmentsecurities at the Reserve banks.
Owing to the decline in bond prices inSeptember, yields on Government bonds
rose substantially, as shown byIncrease in t h e c h a r t Between August 31bond yields
and September 23 the averageyield on Treasury bonds maturing in theperiod 1960-1965 increased by % of 1 percent to a level of over 2% per cent. ForTreasury notes maturing in 1944 the yieldrose to something over lVs P e r cent. Yieldson Treasury notes and long-term bonds sub-sequently declined somewhat and toward theend of September were at about the levels ofearly 1938.
BOND YIELDSPER (
0
o
4
6
8
0
,ENT
4J
u s e
INVERTED SCALE
OVPRMMP
'^CORPORATE A a a .
. , ^ ' 'CORPORATE
NT
v^—^
Baa Ky
PER CENT
0
2
4
6
8
101934 1935 1936 1937 1938 1939
Sources : U. S. Government bonds, Treasury Department; cor-porate bonds, Moody's Investors Service. Weekly average of dailyfigures ; latest are for week ending Sept. 23.
Average yields on high-grade corporatebonds, which had been relatively steadyearlier this year, increased from 3 to over 3*4per cent during the first three weeks of Sep-tember. Yields on lower-grade obligationsshowed irregular changes, as they had duringthe greater part of the year. For some issues,especially those of railroads, yields declinedsomewhat after the outbreak of war, whileyields of other issues continued the moderaterise that had begun about the middle ofAugust.
Sellers of Government securities in theearly part of September were for the mostpart private investors and the smaller institu-
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 841
tional holders, including many banks. Thelarge money-market banks as a group slightlyincreased their holdings of Treasury bonds.
Common stocks rose sharply in Septemberand by the middle of the month had advanced
to the level of the first of theIncrease in y e a r a g ^ e chart shOWS. Pricesstock prices '
of stocks of steel companiesshowed the largest advances while prices ofsome public utility stocks declined slightly.The volume of trading was the largest sincethe autumn of 1937. Indications are thatmuch of the buying has been for cash, as therewas some decline during September in theamount of bank credit used for purchasingand carrying securities.
32 railroads. Wednesday figures ; latest are for Sept. 20.
The recent sharp rise in stock prices con-trasts with the situation in 1914 when a floodof selling from foreign as well as domesticsources caused prices to break to such anextent that the New York Stock Exchangeclosed temporarily. This difference in behav-ior reflects in part anticipation at this time ofthe effects of war on the profits of American
Increase incommercial loans
industry and in part the fact that Americanstocks held in belligerent countries, have notbeen dumped on the market as they were in1914.
Demand for business loans at commercialbanks has increased sharply in recent weeks.
A part of this demand repre-sents a seasonal increase, butmuch of it appears to be for
funds to finance the purchase of additionalinventories and the expansion of current op-erations. The growth in commercial loanshas accompanied the sharp increase in buy-ing of commodities which occurred at theoutbreak of war in anticipation of possiblefuture requirements.
The rise in commercial loans at reportingmember banks in 101 leading cities during thefour weeks ending September 20 amountedto nearly $265,000,000, or 6 per cent. Banksin the leading cities of all Federal Reservedistricts, except the Philadelphia district,showed increases. More than half of this in-crease was in New York City. Since the rapiddecline that extended through the spring oflast year the volume of commercial loans hadshown little change until the recent rise.
The gold movement to the United Stateswas sharply accelerated in August and re-
mained at a high level untilRecent gold t h e jatter part of September.movement TO
In the six weeks ending Sep-tember 20 the monetary gold stock increased$630,000,000 compared with $180,000,000 inthe previous six weeks. Both gold importsand sales of gold held under earmark forforeign account at the Federal Reserve bankswere substantial.
In its earlier stages the increase in the goldmovement reflected a flight of private fundsto the United States during the critical weeksthat preceded the outbreak of war in Europe.The outflow, particularly from Great Britain,was at its height when the British authoritieson August 25 ceased selling gold for the pur-pose of supporting sterling exchange. Thisdevelopment and the subsequent impositionof foreign exchange regulations in the United
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842 FEDERAL RESERVE BULLETIN OCTOBER 1939
foreignexchange rates
Kingdom, France, and other countries werethe major factors in bringing the privateflight movement to an end. During Septem-ber sales of foreign gold to the United Stateswere to a large extent for the purpose of ac-cumulating official dollar balances in thiscountry. Deposits of foreign central bankswith the Reserve banks increased by $150,-000,000 between the end of August and Sep-tember 20.
The removal of official support from ster-ling was accompanied by a sharp decline in
its dollar exchange rate. TheDecline in pound, which had been held
for some time at a level ofabout $4.68, fell as low as
$4.42 in New York on August 25 and fluctu-ated erratically during the week precedingannouncement that Great Britain was at warwith Germany. Early in September, how-ever, in conjunction with the issuance ofregulations governing foreign exchange deal-ings in the United Kingdom, the Bank ofEngland fixed buying and selling rates forthe dollar at $4.06 and $4.02 to the poundrespectively for approved transactions. Theofficial buying rate, which was later changedto $4.04, and the selling rate appear to consti-tute effective limits to the fluctuation of thedollar in London. The British authorities,however, have not attempted to control ratesin foreign centers. New York, for example,has provided a market for sterling whicheither would not be purchased by the Bankof England or which, owing to the confusedsituation, was offered for sale in New Yorkrather than London. For a time these offer-ings found ready takers but in the middle ofSeptember the pound in New York brokeaway from the official rate in London andfell as low as $3.75. Subsequently the situa-tion was somewhat clarified and the NewYork rate rose. By September 22 sterlinghad recovered to $4.00 in New York.
The decline in sterling following August24 resulted in widespread disorganization offoreign exchange markets. For a time thevolume of business was small, being limited
to the satisfaction of the most pressing needs,and many foreign exchange rates were quotedon a nominal basis. The period was one ofuncertainty regarding the status of manycurrencies, particularly those of countrieswhich had pursued a policy of maintaininga stable relationship between their monetaryunits and the pound. By the end of Septem-ber it appeared that few neutral countrieshad remained firmly attached to sterling, al-though a number of currencies had followedthe decline in the pound part way. The fol-lowing table shows the percentage change inexchange rates of the principal currenciesbetween August 24, just prior to the declinein sterling, and September 22.
PERCENTAGE CHANGE IN FOREIGN EXCHANGE RATESIN NEW YORK AUGUST 24—SEPTEMBER 22, 1939
Currency of—
United Kingdom
FranceAustraliaBritish IndiaNew ZealandSouth Africa ..PortugalUruguay
1 Increase less than y2 of one per cent.Percentages based on certified noon buying rates in New York for cable
transfers. No rates were available on Sept. 22 for the currencies ofArgentina, Germany, Hungary, Poland, Rumania, and Yugoslavia.
Prices of most basic foodstuffs and indus-trial materials advanced sharply in the early
part of September. SpotCommodity prices p r i c e g Q f gQ g e n s i t i v e c o m _
modities rose about 20 per cent in the weekending Thursday, September 7, as is shownin the accompanying chart, and in the follow-ing two weeks these commodities as a groupadvanced somewhat further, reaching a levelabout halfway between the low of Augustand the peak reached early in 1937.
The advance early in September was gen-eral both in foodstuffs and industrial mate-rials. In the subsequent two weeks pricesof industrial materials continued to advance,while prices of most foodstuffs showed little
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 843
change or declined. Total supplies of food-stuffs at all points are in large volume bothin this country and abroad. Recent changes
WHOLESALE PRICES OF 3 0 COMMODITIES1926 = 100
THURSDAY FIGURES
90807060
r
^
V <\^TOTAL f
1009080
70
60
50
30
20
INDUSTRIAL \MATERIALS \ i /
1009080
70
60
50
40
30
201936 1937 1938 1939
Bureau of Labor Statistics indexes for total and 16 industrialmaterials ; Federal Reserve grouping of 14 foodstuffs.
in wholesale prices of leading foodstuffs havebeen as follows:
PRICES OF SELECTED FOODSTUFFS
Corn cents per bu.Wheat cents per bu.Cocoa cents per lb.Coffee cents per lb.Sugar, raw cents per lb.
Butter cents per lb.Cottonseed oil cents per lb.Lard cents per lb.
Hogs dol. per cwt.Steers dol. per cwt.
Aug.31
45.0066.00
4.477.252.92
24.004.636.75
6.739.38
Sept.7
61.0085.00
6.707.383.85
26 506.509.50
9.0510.63
Sept.21
57.0084.00
6.157.753.60
28.006.139.75
7.9810.00
Per centincrease,Aug. 31
to Sept. 21
2727
387
23
173244
197
Continued increases in prices of industrialmaterials after the first week of Septemberreflected chiefly further advances for hides,rubber, silk, wool, and burlap, in which for-eign supplies are an important factor. Therewere also further price increases in steelscrap and print cloth accompanying addi-tional heavy buying of steel and cotton tex-tiles. Prices of raw cotton advanced rela-
tively little, owing in part to large stocks onhand and the prospect of a domestic croplarger than world consumption of Americanotton last year. Stocks of other industrial
materials in the hands of domestic producersand industrial consumers are generally lowerthan those of foodstuffs. Changes in pricesof leading materials are indicated in the table,but in some cases, notably tin, recent quota-tions have been largely nominal.
PRICES OF SELECTED INDUSTRIAL MATERIALS
Hides cents per lb.Rubber cents per lb.
Cotton cents per lb.Print cloth cents per yd.Silk dol. perlb.Wool tops dol. per lb.
Copper cents per lb.Lead cents per lb.Tin cents per lb.Zinc cents per lb.Steel scrap dol. per ton
Aug.31
11.0016.88
8.554.632.57
.86
10.504.90
49.004.75
15.25
Sept.7
14.0020.00
9.445.252.831.04
12.005.35
65.006.00
15.75
Sept.21
15.7522.50
8.735.503.051.26
12.005.35
68.006.25
19.25
Per centincrease,Aug. 31,
to Sept. 21
4333
2191947
149
393226
Following recent advances, prices of indus-trial materials as a group are well above ayear ago and close to the level reached inNovember 1936, whereas foodstuffs as agroup are at about the level of a year agoand still far below prices prevailing in theautumn of 1936, when supplies had been re-duced by drought conditions. The recent sub-stantial rise in foodstuffs started from rela-tively low levels, as, for example, in the caseof lard, which in August was close to the de-pressed level of 1932. The initial rise infoodstuffs was subsequently followed by somedecline.
Recent advances in prices of materials haveextended to other markets. In the textilemarkets prices of fabrics, particularly wool-ens and worsteds, have been increased owingpartly to sharp advances in prices of yarns,and there have also been advances in hosieryand carpets and rugs. Current list pricesfor finished steel in domestic markets havebeen reaffirmed for fourth quarter delivery,but it is reported that concessions from listprices, quite general earlier, are no longer
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844 FEDERAL RESERVE BULLETIN OCTOBER 1939
available on new business, and export priceshave been raised to domestic levels. Amongother industrial commodities the most im-portant advances have been in prices ofleather, some grades of paper, and chemicals,particularly imported drugs and fine chemi-cals.
The general level of wholesale commodityprices, according to the Bureau of LaborStatistics' index, rose 3 points in the weekending September 9 and 1 point in the fol-lowing two weeks to 79.5 per cent of the 1926average, about the same level as a year ago.
In retail markets a special survey by theBureau of Labor Statistics shows that pricesof sugar, flour, lard, and meats advancedfrom August to the middle of September,while in other items, such as coffee, cocoa,and bread, there was little or no price rise.According to reports household consumersand institutions in many cases purchasedbeyond their usual needs and as a resultsome distributors' stocks were temporarilydepleted in a number of areas.
Industrial activity had been increasing forseveral months before the rapid advance
began in September. InAugust the Board's indexof industrial production was
at 102 per cent of the 1923-1925 average ascompared with 92 in April and May, 104 lastDecember and the low level of 77 reached inthe middle of 1938. The course of the indexin recent years and of component parts isshown on the accompanying chart. The risein September carried the index to about 110.
Increases in output in the three monthsprior to September had been quite generaland had reflected largely response to the sus-tained level of consumption prevailing sincethe beginning of this year. In the iron andsteel industry ingot production, which haddeclined to about 45 per cent of capacity inthe middle of May, subsequently increasedsteadily, reaching a rate of 63 per cent bythe end of August; the sharp rise in Septem-ber brought the rate to 84 per cent in the lastweek of the month. The increase during the
Increase inindustrial output
summer reflected to some extent increasedsteel takings by concerns which had beenusing up stocks of steel acquired earlier. Therise also represented increased use of steel in
INDUSTRIAL PRODUCTION
1932 1933 1934 1935 1936 1937 1939
Figures shown for September 1939 are estimates madeSeptember 26.
a variety of manufacturing industries, par-ticularly machinery, shipbuilding, and indus-tries fabricating miscellaneous products ofsteel. Output of steel for construction con-tinued in substantial volume. Demand fromthe automobile industry was in reduced vol-ume until August when increased require-ments for steel accompanied the shift to pro-duction of new model automobiles.
Automobile production was in reduced vol-ume during the summer as dealers' stocks ofnew cars, which had been at high levels, werebeing liquidated. Retail sales continued insubstantial volume during this period andstocks declined to low levels. Assemblies arenow increasing rapidly as volume productionis getting under way throughout the industryto supply current consumer demand and tostock dealers.
The moderate decline during the first halfof 1939 and the subsequent increase in "otherdurable" manufactures reflected mainly
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 845
changes in output of plate glass, most ofwhich is used by the automobile industry,and a temporary reduction in output of by-product coke during the shutdown of bitumi-nous coal mines discussed below. Productionof lumber and cement has been largely main-tained around levels reached at the beginningof this year, reflecting the higher level ofactivity prevailing in the construction in-dustry.
Textile production increased further inAugust and was at a rate close to the peaklevel reached late in 1936 and maintainedduring the first half of 1937. For the pastyear output of cotton and woolen textiles hasbeen in substantial volume, and it is reportedthat buying in September was sufficient tobring about some increase from earlier levels.At rayon mills activity has been at a high ratein recent months; takings of silk, however,have been sharply curtailed this summerpartly as a result of high prices for raw silk.Shoe production has been in large volumethis year, and output of tobacco and petro-leum refinery products has continued at ahigh level.
Mineral output has shown sharp fluctua-
tions this year. In April and the first halfof May bituminous coal production was re-duced by nearly two-thirds as most mineswere closed during contract negotiations be-tween mine operators and the United MineWorkers union. In the latter half of Augustcrude petroleum production was reduced byabout one-half as most wells in the principaloil producing States, with the exception ofCalifornia and Illinois, were closed by theconcerted action of State regulatory authori-ties. Stocks of coal and petroleum weresharply reduced during the periods of tem-porary curtailment, and when activity wasresumed output rose rapidly to about thelevels prevailing earlier. Lake shipments ofiron ore so far this season have been muchlarger than a year ago, although still con-siderably smaller than in 1937. Stocks ofiron ore at furnaces and Lake Erie docks thisyear have not been large relative to consump-tion, however, and consequently, when largeinquiries for steel developed in September,shipment schedules were increased substan-tially and additional ore boats were broughtinto service, indicating a high level of ship-ments for the remainder of this season.
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846 FEDERAL RESERVE BULLETIN OCTOBER 1939
NATIONAL SUMMARY OF BUSINESS CONDITIONS[Compiled September 15 and released for publication September 18]
Industrial activity, which had increasedsubstantially during the summer, showed asharp advance in the first half of Septemberafter the outbreak of war in Europe. Pricesof basic commodities and equity securitiesrose sharply while prices of high-grade bondsdeclined.
Production.—In August, the Board's sea-sonally adjusted index of industrial produc-tion was at 102 per cent of the 1923-1925average as compared with 101 per centreached in July. Volume of manufacturingproduction increased further, but mineralproduction declined, owing to a temporarycurtailment in output of crude petroleum.In the iron and steel industry output in-creased somewhat further in August and rosesharply in the first half of September, steelingot production reaching a rate of 70 percent of capacity in the week ending Septem-ber 16 as compared with about 63 per centat the beginning of the month. Automobile
INDUSTRIAL PRODUCTIONPER CENT140
130
100
90
80
70
/ \ /
' V
/\\\
//
V
PER CENT
140
90
80
1934 1935 1939
Index of physical volume of production, adjusted for seasonalvariation, 1923-1925 average = 100.
production showed about the usual sharpseasonal changes in this period as the shift tonew model production was being made. Out-put of plate glass increased sharply. Pro-duction of nondurable manufactures ad-vanced in August, reflecting chiefly increasedactivity at cotton and woolen textile mills.At meat-packing establishments activity de-clined less than seasonally, while at flour
mills, where output has been at a high ratein recent months, there was not the usuallarge seasonal increase. Shoe production ad-vanced seasonally. At coal mines output in-creased by about the usual seasonal amountand shipments of iron ore were at the high-est rate of this season. Petroleum produc-tion declined sharply during the latter halfof August, reflecting shut-downs of wells inmost of the principal oil-producing States,but increased rapidly in the first half ofSeptember when the wells were reopened.
Value of construction contracts, as re-ported by the F. W. Dodge Corporation, in-creased somewhat in August, owing to largerawards for publicly-financed projects, includ-ing several large dams and an increased vol-ume of United States Housing Administra-tion projects. Private residential buildingshowed little change, although there is usu-ally some seasonal decline. Other privateconstruction, which in July had been thehighest for any month in two years, declinedin August.
Distribution.—Department store sales in-creased more than seasonally from July toAugust. The Board's adjusted index ad-vanced from 86 to 89 per cent of the 1923-
DEPARTMENT STORE SALES AND STOCKS
110
100
80
70
60
50
40
AT"
SALES
A
VSTOCK /—"N
VV
PER CENT110
50
1935 1939
Indexes of value of sales and stocks, adjusted for seasonal varia-tion, 1923-1925 average = 100.
1925 average and was at about the levelreached in the latter part of last year. Salesat variety stores showed little change inAugust.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 847
Freight-car loadings rose somewhat fur-ther in August, reflecting chiefly continuedincreases in shipments of coal and miscel-laneous freight.
Commodity prices.—Prices of most basicfoodstuffs and industrial materials advancedsharply in the first half of September. Pricesof wheat, corn, sugar, cocoa, and vegetableoils as well as of hides, rubber, wool, zinc,and tin showed the largest increases. The
WHOLESALE PRICES
50 U1935 1939
Indexes compiled by United States Bureau of Labor Statistics,1926 = 100. By weeks, January 6, 1934, to September 16, 1939.
general level of wholesale commodity pricesas measured by the Bureau of Labor Statis-tics' index rose 3.1 points and in the weekending September 9 was at 78.4 per cent ofthe 1926 average, about the same level asa year ago.
Agriculture.—Crop prospects showed someimprovement on September 1 over a monthearlier, according to the Department of Agri-culture. Indications are that production ofall leading crops except cotton will be aver-age or above average in volume. A cottoncrop of 12,380,000 bales, about 10 per centbelow the 1928-1937 average, is forecast.This compares with a crop of 11,940,000bales in 1938 and an estimated world con-sumption of 11,265,000 bales of Americancotton during the past season.
Government security market. — Averageyields on long-term Treasury bonds, whichhad advanced fractionally since last June, in-creased sharply by about % of 1 per centin the latter half of August and early Sep-tember. In pursuance of the System's policyof endeavoring to maintain orderly condi-tions in the money market, the Federal Re-serve banks during the first half of Septem-ber increased their holdings of Governmentsecurities by about $400,000,000. On Sep-tember 1 the Board of Governors of theFederal Reserve System announced that theFederal Reserve banks are prepared at thistime to make advances on Government obli-gations to member and nonmember banks atpar and at the same rate of discount.
Bank credit.—Total investments held byreporting member banks in 101 leading citiesdeclined during the first half of September.At New York City banks the decline repre-
MONEY RATES IN NEW YORK CITY
1934 1935 1936 1937 1938 1939
Minimum rate on rediscounts for and advances to member banksby Federal Reserve bank ; weekly averages of daily yields on 3- to5-year Treasury notes and Treasury bonds callable after 12 years,and average discount on new issues of 91-day Treasury bills offeredwithin week. For weeks ending January 6, 1934, to September 16,1939.
sented the redemption at maturity of FederalFarm Mortgage Corporation bonds and atbanks in other leading cities it representedthe sale of Treasury bills and bonds. Com-mercial loans of city banks showed a sub-stantial growth during August and the firsthalf of September.
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848 FEDERAL RESERVE BULLETIN OCTOBER 1939
MEMBER BANK RESERVES AND RELATED ITEMSBILLIONS OF DOLLARS WEDNESDAY FIGURES
TREASURY DEPOSITSAT F.R. BANKS
1934 1935 1936 1937 1938Latest figures for September 20. See page 890.
1939
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 849
SUMMARY OF FINANCIAL AND BUSINESS STATISTICS
MEMBER BANK RESERVES, RESERVE BANK CREDIT,AND RELATED ITEMS
Reserve bank credit outstanding—totalBills discounted - - -Bills bought .
Gold stock - -Treasury currency outstandingTVf onpv in circulationTreasury cash holdingsTreasury deposits with F R banksNonmember deposits and other F. R. accountsMember bank reserve balances:
Total - -Excess -
REPORTING MEMBER BANKS IN 101 LEADING CITIES
Total loans and investmentsLoans—total - -
Commercial, industrial and agriculturalTo brokers and dealers in securitiesOther loans for purchasing or carrying securities..All other loans
Investments—total - _ -U S Government direct obligationsObligations fully guaranteed by U .S . Govt.. _.Other securities
Reserve with Federal Reserve banksCash in vaultBalances with domestic banksDemand deposits—adjusted . _ _Time deposits (excluding interbank)2
Deposits of domestic banks 3_Borrowings
MONEY RATES AND BOND YIELDS
Stock exchange call loansTJ S Treasury bills (91 days)U S Treasury bonds, long-term 4
Common stocks (1926=100)Wholesale commodity prices (1926=100):
All commodities -Farm productsFoodsOther commodities _ _ _ .
Retail food prices (1923-25=100)
BUSINESS INDEXES
Industrial productionManufactures __ _Minerals
Construction contracts awarded—total..ResidentialAll other
Factory employment5. _Factory payrolls (unadjusted)5 __Freight-car loadingsDepartment store sales
MERCHANDISE EXPORTS AND IMPORTS
Exports including re-exportsGeneral imports
1939
Aug. July June
1938
Aug. July June 1938
Annual averages
1937 1936 1935 1933 1929
Averages of daily figures; in millions of dollars
2,46751
2,4376,3902,9007,0982,344
783872
0,6594,607
22, 3278,1793,930
642521
3,08614,1488,5372,2653,3468,951
4402,8087,7175,2597,118
7
2,56951
2,52716,1822,8877,0512,534
780952
10, 3214,402
22,0468,1463,888
648532
3,07813, 9008,4992,1583,2438,645
4482,765
17,3665,2386,890
8
2,59141
2,56316,0282,8706,9662,568
929940
10,0854,246
2,590
12,564
13,0572,7246,4822,392
774606
8,1192,955
2,59981
2,56412, 9852,7166,4642,318
717634
8,1673,026
2,59291
2,56012, 9462,7076,4332,283
967683
7,8782,762
Averages of Wednesday figures,
21, 8878,0943,830
671541
3,05213, 7938,3832,1193,2918,460
4472,727
17,1825,2406,728
20, 6758,2153,886
636577
3,11612,4607,7021,6463,1126,602
3872,416
15,1185,2065,920
1
20, 5308,2133,878
629577
3,12912, 3177,7031,5673,0476,675
4032,435
15, 0215,2115,936
6
20, 6968,3843,953
686582
3,16312,3127,8641,4532,9956,407
3982,406
14, 9325,2315,847
5
2,60091
2,56513,2502,7116,5102,804
653658
7,9352,522
2,554143
2,54012,1622,5676,4753,225
158595
6,8301,220
2,48164
2,43010, 5782,5036,1012,474
446551
5,9892,512
in millions of dollars
21,0238,5064,059
701588
3,15812, 5177,9821,4513,0846,400
3822,289
15,0335,2025,770
3
22,1989,546
0)1,2260)0)
12,6528,3941,1643,0945,307
3371,884
15,0975,2025,298
12
22,0648,462
0)1,1810)0)
13,6029,0801,2503,2724,799
3832,358
14, 6194,9995,810
5
2,47575
2,4319,0592,4785,5852,791
128507
5,0012,469
19,9978,028
0)990
0)0)
11,9697,989
9283,0524,024
3262,112
12, 7294,8834,938
6
2,429283
832,0524,0592,2715,576
28855
497
2,343528
17, 5059,156
0)111
0)(1)8,349
5,228
3,1211,822
2401,3220)
4,9462,822
115
1,459952241208
3,9962,0154,476
20722
406
2,35843
22, 59916 8870)
e 2, 2080)(i)5,7122,865
2,8471,725
2481,1420)6,7882,787
674
Averages of daily figures; per cent per annum
561.00.05
2.212.93
44710234532425
299
86
7561678075
P102P104
IIIP 8 1
7089
P251
.561.00.04
2.162.89
58631826822649
177
.561.00.03
2.132.92
60529331228230
252
86
7563688077
10110010667627195846986
230169
86
7662688076
.751.00.06
2.513.18
.751.00.07
2.523.22
.881.00.05
2.523.26
Amounts per month;
417182236338127211
470391
79186130
56
513349164301202
99
.811.00.07
2.563.19
.951.00
.282.683.26
.75
.91
.172.653.24
in millions of dollars
37219717517973
107
328178150203102101
51816435438299
282
76.56.17
2.793.60
39212127018934
155
1 721.16
3.314.49
896029321318
Index numbers
90
7867738178
88
7969748180
73
7869738180
Index numbers, adjusted for s
9897
10463586794876786
236179
88879566537788776283
83829359496886716183
77749254426485715882
Amounts per month;
231166
228141
233146
83
7969748279
112
8686868585
easonal variation
86849864458090786285
110109115594174
1091037892
111
8181828082
78
8079847881
, 1923-25=100
10510510555377099867588
in millions of dollars
258163
279257
205202
90909137215091746479
190171
63
6651617166
76758225113773505867
140121
5 857.61
3.604.73
959841118781667115
190
9510510092
105
11911911511787
142106110107111
437367
p Preliminary. r Revised. e Partly estimated.i Figures not available.*Includes time deposits of banks, domestic and foreign, 1929-1933.s Does not include time deposits, 1929-1933.4 Averages of yields of all outstanding bonds due or callable after 12 years. See BULLETIN for December 1938, pp. 1045-1046.5 Revised series. See pp. 878-887 of this BULLETIN.
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850 FEDERAL RESERVE BULLETIN OCTOBER 1939
LAW DEPARTMENT
Transfers from Savings Accounts to FHA MortgageAccounts Without Presentation of Pass Books
The Board was recently presented with thequestion whether transfers may be made fromthe savings accounts of certain depositors ina national bank to so-called FHA mortgageaccounts in their names, pursuant to the writ-ten orders of the depositors but without thepresentation, at the time the transfers aremade, of the pass books evidencing such sav-ings accounts.
It appeared that the national bank is serv-icing a large number of mortgage loans whichare insured by the Federal Housing Admin-istration ; that in connection with the makingof such loans the mortgagors open savingsaccounts with the bank and deliver to it writ-ten authorizations to charge their respectivesavings accounts for the amounts due monthlyin respect of their mortgages. The amountsthus charged to their savings accounts arecredited to so-called FHA mortgage accountsin their names, and amounts so credited areused to pay the monthly installments due onthe mortgages for principal, interest, pre-miums for mortgages, insurance, servicecharges, taxes, ground rents and assess-ments. The savings accounts pass books arenot presented to the bank, but the bank sendsmonthly advices to the mortgagors of theamounts charged to their savings accountsand the mortgagors send their savings de-posits pass books to the bank quarterly forthe entry therein of the debits to their sav-ings accounts.
Although the amounts charged to the sav-ings account are credited to the so-calledFHA mortgage account of the mortgagor,the transaction is essentially a payment bythe bank out of the savings account to a thirdparty, because under the agreement betweenthe mortgagor-depositor and the bank, theamounts thus debited to the savings accountsand credited to the FHA mortgage accountsare no longer under the control of the mort-gagor-depositor but are merely in transit tothe ultimate recipients of the amounts con-stituting the monthly payments due underthe mortgage.
In view of the facts stated above, it wasclear that the payment is not made "uponpresentation of the pass book", and the ques-tion presented was whether the transactioncomplies with the provision of section l(e)
(2) of Regulation Q with respect to savingsdeposits that
"Withdrawals are permitted in only two ways,either (i) upon presentation of the pass book,through payment to the person presenting the passbook, or (ii) without presentation of the pass book,through payment to the depositor himself but not toany other person whether or not acting for the de-positor."
It was deemed proper in a case like thepresent one to consider the essential natureand purpose of the transaction as well as itsform. One of the typical purposes for whichsavings accounts are maintained is the ac-cumulation of funds with which to pay off amortgage. In the present case the savingsaccounts are maintained for that purpose,and each depositor gives the bank a writtenorder to pay off his mortgage out of his sav-ings account at the time when his savingsaccount is opened and as a part of the sametransaction. The requirement that the sav-ings pass book must accompany a check pay-able to a third party is designed to preventthe drawing of more than one check at a timeagainst a savings account and the use of asavings account as an ordinary checking ac-count; but it does not appear that any suchabuse is involved in the present arrangement.While the order given by the depositor pro-vides for several transfers at regular periodicintervals, it appears that all of the transfersare for the same purpose and are made inpursuance of the same order.
Accordingly, the Board expressed the opin-ion that the handling of the periodic pay-ments in the manner described above is notin violation of Regulation Q. However, itwas pointed out that the present ruling isbased upon the facts of this particular case,and that a different result might be reachedin another case with facts bearing a super-ficial resemblance to those discussed herein.
Payment or Renewal of Certificate of DepositMaturing on Sunday
The Board of Governors recently consid-ered the question whether certificates of de-posit maturing on Sunday may be renewedor paid on the previous day.
Attention was called by the Board to a rul-ing published at page 609 of the 1934 FEDERALRESERVE BULLETIN to the effect that there isno provision of law which would preclude the
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renewal of a time certificate of deposit priorto the date of its maturity, dating the newcertificate as of the date of maturity of theoriginal certificate.
As to the payment of a certificate of depositmaturing on Sunday, the Board ruled thatthe date on which such a certificate is due andpayable is to be determined by State law.Under the statutes of the State to which theBoard's ruling applied, negotiable paper ma-turing on a Sunday or on a holiday becomesdue on the succeeding secular or business dayand, accordingly, the Board ruled that undersection 4 of Regulation Q a member bank ofthe Federal Reserve System located in suchState may not pay a time certificate of deposithaving such a maturity until the next suc-ceeding secular or business day, except in thecircumstances specified in the regulation.
Payment of Interest on Savings Account afterDeath of Depositor
The Board of Governors recently consid-ered the question whether a member bankmay continue to pay interest on a savingsaccount after the death of the depositor.
Attention was called to the definition of theterm "savings deposit" contained in subsec-tion 1 (e) of Regulation Q, providing in partthat such a deposit may consist of funds, theentire beneficial interest in which is held byone or more individuals or by a corporation,association, or other organization operatedprimarily for religious, philanthropic, chari-
table, educational, fraternal, or other similarpurposes and not operated for profit. Ac-cordingly, the Board ruled that a savingsdeposit may continue to be classified as suchafter the death of the depositor if the entirebeneficial interest is then held by individualsor organizations of the kinds mentioned inthe regulation. Likewise, a deposit in thename of an executor or administrator may beclassified as a savings deposit if it meets theother requirements of the definition of sav-ings deposits in the regulation and the entirebeneficial interest is held by individuals ororganizations of the kinds mentioned. Evenwhere it is not known whether the entirebeneficial interest is held by individuals ororganizations of the kinds described, theBoard declared that it would offer no objec-tion, for a reasonable time after the deathof the depositor, to the continued classifica-tion as a savings deposit of a deposit whichhas theretofore been properly classified assuch.
Trust Indenture Act of 1939
On August 3, 1939, the President approvedthe Trust Indenture Act of 1939 (Pub. No.253, 76th Cong.). This Act adds a new titleto the Securities Act of 1933 and containsrequirements, limitations and restrictions re-lating to trust indentures under which certainsecurities are issued and sold in interstateand foreign commerce and through the mails.
COMPILATION OF FEDERAL AND STATE LAWS RELATING TO BRANCHBANKING WITHIN THE UNITED STATES
There was published at page 258 of theFEDERAL RESERVE BULLETIN for April, 1930,a compilation of the State laws relating tobranch banking within the United States.On page 455 of the FEDERAL RESERVE BUL-LETIN for July, 1932, there were printed theprovisions of the branch banking laws ofcertain States which had been amended oradded since the preparation of the previouscompilation. The foregoing matters werethereafter superseded by a compilation pub-lished in the FEDERAL RESERVE BULLETIN forNovember, 1936, page 858.
The following compilation, which has beenprepared in the office of Counsel of the Boardof Governors of the Federal Reserve System
with the assistance of the Counsel of theFederal Reserve banks, supersedes the com-pilation published in the FEDERAL RESERVEBULLETIN for November, 1936, and the pre-viously published data on this subject, andshows as of August 15, 1939, the status ofthe laws of the United States and of thevarious States affecting the establishment ofbranches within the United States by banksand trust companies, including savings banksand Morris Plan banks. Each provision oflaw is followed by a citation to the appropri-ate statute or official edition of the laws ofthe State consulted in the preparation of thecompilation.
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SUMMARY OF STATE BRANCH BANKING LAWS
StatespermittingState-wide
branch banking
ArizonaCaliforniaConnecticutDistrict of
Columbia 1IdahoLouisianaMaineMarylandMichiganNevadaNorth CarolinaOregonRhode IslandSouth CarolinaSouth DakotaUtahVermontVirginiaWashington
New YorkNorth Dakota 2OhioPennsylvaniaTennesseeWisconsin 2
Total, 17
Statesprohibiting
branchbanking
ColoradoFloridaIllinoisKansasMinnesotaMissouriNebraskaTexasWest Virginia
Total, 9
States with nolegislationregarding
branch banking
Kentucky 3New HampshireOklahomaWyoming
Total, 4
1 District of Columbia not included in tabulations published in FED-ERAL RESERVE BULLETIN for April, 1930, and July, 1932.
2 Only "offices," "agencies" or "stations" for limited purposes, asdistinguished from "branches," permitted under certain circumstances.
3 Court decisions permit establishment of offices or agencies to receivedeposits and cash checks.
NOTE.—The foregoing tabulation does not reflect detailed provisionsof the law in certain States such as restrictions based upon the popula-tion of the place of the head office or the place of the proposed branch,restrictions that certain branches be established only by consolidationor merger, requirements that the place of the proposed branch be with-out other banking facilities, etc. For example, the State of Virginia isclassified in the foregoing tabulation as a State permitting State-widebranch banking, but under the laws of that State branches may beestablished only in "other cities having a population of not less than50,000 inhabitants." For such detailed provisions, reference should behad to the compilation of the laws of the individual States publishedherein.
FEDERAL LAWNATIONAL BANKS
Branches permitted.—"(c) A national banking as-sociation may, with the approval of the Comptrollerof the Currency, establish and operate new branches:(1) Within the limits of the city, town or village inwhich said association is situated, if such establish-ment and operation are at the time expressly author-ized to State banks by the law of the State in ques-tion; and (2) at any point within the State in whichsaid association is situated, if such establishmentand operation are at the time authorized to Statebanks by the statute law of the State in question bylanguage specifically granting such authority af-firmatively and not merely by implication or recogni-tion, and subject to the restrictions as to locationimposed by the law of the State on State banks. Inany State in which State banks are permitted bystatute law to maintain branches within county orgreater limits, if no bank is located and doing busi-ness in the place where the proposed agency is to belocated, any national banking association situated insuch State may, with the approval of the Comptrollerof the Currency, establish and operate, without re-gard to the capital requirements of this section, aseasonal agency in any resort community within thelimits of the county in which the main office of suchassociation is located, for the purpose of receivingand paying out deposits, issuing and cashing checksand drafts, and doing business incident thereto:Provided, That any permit issued under this sentenceshall be revoked upon the opening of a State or na-
tional bank in such community. * * *" (Sec. 5155,Revised Stats.; Sec. 36, Title 12, U.S.C., Supp. IV.)
"(e) No branch of any national banking associa-tion shall be established or moved from one locationto another without first obtaining the consent andapproval of the Comptroller of the Currency."
"(f) The term 'branch' as used in this section shallbe held to include any branch bank, branch office,branch agency, additional office, or any branch placeof business located in any State or Territory of theUnited States or in the District of Columbia at whichdeposits are received, or checks paid, or money lent."
"(h) The words 'State bank/ 'State banks/ 'bank/or 'banks/ as used in this section, shall be held toinclude trust companies, savings banks, or other suchcorporations or institutions carrying on the bankingbusiness under the authority of State laws."
"(a) A national banking association may retainand operate such branch or branches as it may havein lawful operation at the date of the approval ofthis Act [February 25, 1927], and any national bank-ing association which has continuously maintainedand operated not more than one branch for a periodof more than twenty-five years immediately preced-ing the approval of this Act [February 25, 1927],may continue to maintain and operate such branch."
" (b) If a State bank is hereafter converted into orconsolidated with a national banking association, orif two or more national banking associations are con-solidated, such converted or consolidated associationmay, with respect to any of such banks, retain andoperate any of their branches which may have beenin lawful operation by any bank at the date of theapproval of the Act [February 25, 1927]." (Sec.5155, Revised Stats.; Sec. 36, Title 12, U.S.C.)
Capital required.—"(c) * * * no such associationshall establish a branch outside of the city, town, orvillage in which it is situated unless it has a paid-inand unimpaired capital stock of not less than $500,-000: Provided, That in States with a population ofless than one million, and which have no cities locatedtherein with a population exceeding one hundredthousand, the capital shall be not less than $250,000:Provided, That in States with a population of lessthan one-half million, and which have no cities lo-cated therein with a population exceeding fifty thou-sand, the capital shall not be less than $100,000."(Sec. 5155, Revised Stats.; Sec. 36, Title 12, U.S.C,Supp. IV.)
"(d) The aggregate capital of every nationalbanking association and its branches shall at no timebe less than the aggregate minimum capital requiredby law for the establishment of an equal number ofnational banking associations situated in the variousplaces where such association and its branches aresituated." (Sec. 5155, Revised Stats.; Sec. 36, Title12, U.S.C.)
The provisions regarding capital requirements forthe establishment of branches do not apply to theestablishment of seasonal agencies in resort com-munities. (Sec. 5155, Revised Stats.; Sec. 36, Title12, U.S.C, Supp. IV.)
STATE MEMBER BANKS
Branches permitted.—"Any such State bank which,at the date of the approval of this Act [February25, 1927], has established and is operating a branchor branches in conformity with the State law, mayretain and operate the same while remaining orupon becoming a stockholder of such Federal re-serve bank; but no such State bank may retain or
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 853
acquire stock in a Federal reserve bank except uponrelinquishment of any branch or branches estab-lished after the date of the approval of this Act[February 25, 1927] beyond the limits of the city,town, or village in which the parent bank is situated.Provided, however, That nothing herein containedshall prevent any State member bank from estab-lishing and operating branches in the United Statesor any dependency or insular possession thereof orin any foreign country, on the same terms and condi-tions and subject to the same limitations and re-strictions as are applicable to the establishment ofbranches by national banks except that the approvalof the Board of Governors of the Federal ReserveSystem, instead of the Comptroller of the Currency,shall be obtained before any State member bankmay hereafter establish any branch and before anyState bank hereafter admitted to membership mayretain any branch established after February 25,1927, beyond the limits of the city, town, or villagein which the parent bank is situated." (Sec. 9,Par. 2, Federal Reserve Act; Sec. 321, Title 12,U. S. C., Supp. IV.)
Capital required.—Same requirements as for estab-lishment of branches by national banks.
"Bank" defined.—"Wherever the word 'bank' isused in this Act, the word shall be held to includeState bank, banking association, and trust company,* * * ." (Sec. 1, Par. 2, Federal Reserve Act;Sec. 221, Title 12, U.S.C.)
INSURED STATE BANKS NOT MEMBERS OF
FEDERAL RESERVE SYSTEM
Branches permitted.—"No state nonmember in-sured bank (except a District bank) shall estab-lish and operate any new branch after thirty daysafter the effective date [August 23, 1935] unless itshall have the prior written consent of the [FederalDeposit Insurance] Corporation, and no branch ofany State nonmember insured bank shall be movedfrom one location to another after thirty days afterthe effective date without such consent. The fac-tors to be considered in granting or withholding theconsent of the Corporation under this paragraphshall be" the same as those to which the board ofdirectors of the Corporation is required to give con-sideration in determining whether a State nonmem-ber bank is entitled to the benefits of depositinsurance under the provisions of Section 12B of theFederal Reserve Act. (Sec. 12B (v) (5), FederalReserve Act; Sec. 264 (v) (5), Title 12, U.S.C,Supp. IV.)
Capital required.—No additional capital is re-quired.
STATE LAW
ALABAMA
Limited branch banking permitted.—"No bank, orany officer, agent or director thereof shall be per-mitted to establish a branch or office for the trans-action of the banking business other than at itsprincipal place of business. (Sec. 6354, AlabamaCode, 1928.)
Upon the prior written consent of the State Super-intendent of Banks, "any state bank, whether in-corporated or unincorporated, within this State,* * * situated in a county of which the population"exceeds 250,000 "shall have power to establish, main-tain and operate, within the limits of the countywherein the principal place of business of such bankis situated, one or more branch banks, branch offices,
branch agencies, additional offices or branch placesof business for the receipt of deposits, payment ofchecks or lending of money * * *." (Act No. 15,approved January 29, 1935; Sec. 6365, note AlabamaCode 1928, 1936 Supp.)
Capital required.—"* * * combined paid-in cap-ital and paid-in or earned surplus of more than onemillion dollars * * *."
« * * * prOvided that only one such branch shallbe so established, maintained and operated with re-spect to each two hundred fifty thousand dollarsby which the amount of combined paid-in capital andpaid-in or earned surplus of such bank exceeds onemillion dollars * * *." (Act No. 15, approved Jan.29, 1935; Sec. 6365, note, Alabama Code 1928, 1936Supp.)
"Bank" defined.—"The word 'bank' as herein usedmeans any person, firm, partnership or corporationdoing or carrying on a banking business * * *."(Sec. 6275, Alabama Code, 1928.)
"All Corporations organized and operating astrust companies shall * * * be amenable to the gen-eral banking laws of the State insofar as said lawsare applicable to trust companies * * *." (Sec.6388, Alabama Code, 1928.)
ARIZONA
Branches permitted.—The superintendent of banks,upon receipt of a written application "for leave toopen a branch office" from a commercial bank,savings bank or trust company, "shall investigateand ascertain whether the public convenience andadvantage will be promoted by the opening of suchbranch office * * *. If satisfied that the grantingof such application is expedient and desirable, heshall make a certificate * * * authorizing the open-ing of such branch office * * *." (Sec. 225, Ch. 8,Revised Code of Arizona, 1928.)
"Industrial banks * * * may be organized, li-censed and authorized to do business in the samemanner as provided for by the law of this state forthe organization, authorization, licensing and opera-tion of other banks." (Sec. 3, Ch. 13, Laws ofArizona, Second Sp. Sess., 1937.)
Capital required.—A "paid-in capital and surplusof not less than fifty thousand dollars, plus fifteenthousand dollars of additional capital and surplus"is required for each branch so authorized. (Sec.225, Ch. 8, Revised Code of Arizona, 1928.)
ARKANSAS
Branches prohibited but limited "offices" per-mitted.—Upon the completion of the organization ofa bank, trust company or savings bank, it is author-ized "to proceed with its business, but with only oneoffice for the transaction thereof in only the one townor city as to which the application has been made."(Sec. 708, Stats, of Arkansas, 1937.)
Any "banking institution," Federal or State,"doing business in this state may establish an officefor the purpose of receiving deposits and payingchecks and performing * * * other clerical and bankservice duties * * *. However, no banking institu-tion may establish any office beyond those countiescontiguous to the county in which said banking insti-tution is located, nor in a city or town in whichthere is already an established bank * * *. No officeshall be continued at any place after a legallychartered bank has actually commenced business atthat place." (Sec. 814, Stats, of Arkansas, 1937.)
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« * * * n o teller's window branch of any bankshall be placed in any incorporated town where a'cooperative bank' is now in existence, in the event amajority of the real property owners residing withinthe incorporated limits of such town or city shallprotest by petition the State Banking Departmentgranting its permission to place such teller's win-dow in such city or town." (Sec. 2282, Stats, ofArkansas, 1937.)
Capital required.—No additional capital is re-quired for the establishment of offices with limitedfunctions.
CALIFORNIA
Branches permitted.—"No bank in this state, orany officer or director thereof, shall hereafter openor keep an office other than its principal place ofbusiness, without first having obtained the writtenapproval of the superintendent of banks to the open-ing of such branch office, which written approvalmay be given or withheld in his discretion, and shallnot be given by him until he has ascertained to hissatisfaction that the public convenience and ad-vantage will be promoted by the opening of suchbranch office; * * *." (Sec. 9, Art. I, Act 652, Gen-eral Laws of California, 1937.)
An industrial loan company may "establish offices,or places of business within the county in which itsprincipal place of business is located, but not else-where." (Sec. 4, Act 3603, General Laws of Cali-fornia, 1937. >
Capital required.—In addition to its own requiredcapital, a bank or trust company must have $50,000paid-in capital for each branch office located in theplace where its principal business is transacted. Foreach out-of-town branch, a bank (other than a trustcompany exclusively) must have, in addition to itsown required capital, paid-in capital equal to theamount required for the organization of a bank inthe location of the branch, exclusive of the capitalrequired for a trust department. In the case of atrust company exclusively, in addition to its ownrequired capital, it must have additional paid-incapital of at least $50,000 for each branch outsideits principal place of business. (Sec. 9, Art. I, Act652, General Laws of California, 1937. ̂
Other branch banking provisions.—There are alsoprovisions concerning the discontinuance of a branch;the fee for opening a branch; penalty for violationof law covering establishment of branches; ratio ofcapital and surplus to deposits of branches; name ofbranch and its advertising; and establishment ofbranches by banks located in city or territory whichis annexed by or consolidated with city or territoryof a class requiring a larger capitalization. Sees. 9,19, 23(2), 28 of Art. I, Sec. 60 of Art. II and Sec. 82of Art. Ill, Act 652, General Laws of California,1937.)
"Bank" defined.—"The word 'bank' as used inthis act shall be construed to mean any incorporatedbanking institution which shall have been incor-porated to conduct the business of receiving moneyon deposit, or transacting a trust business as hereindefined." (Sec. 2, Art. I, Act. 652, General Laws ofCalifornia, 1937.)
COLORADO
Branches prohibited.—Every bank and every trustcompany engaging in the business of banking "shallbe conducted at a single place of business, and nobranch thereof shall be maintained elsewhere." (Sees.1, 61, 143, 147, Ch. 18, Colorado Stats. Anno., 1935.)
CONNECTICUT
Branches permitted.—"Any state bank and trustcompany * * * may, with the approval of the bankcommissioner, (1) establish and operate one or morebranches within the town in which such state bankand trust company is located; (2) establish andoperate one or more branches in any town or townswithin this state in which there is or are no com-mercial bank or banks of deposit and discount, * * *(3) continue to operate as a branch in the same orapproximately the same location, the business of anyother banking institution located within this state,which business has been acquired by purchase, con-solidation or merger under the provisions of thegeneral statutes, * * *." (Sec. 1451c, 1935 Cum.Supp., General Statutes of Connecticut.)
In case of the merger or consolidation of Statebanks and trust companies, the "resulting corpora-tion shall not maintain more than one banking housefor the conduct of its business except as authorizedby the provisions of section 1451c in the case ofbranch banks." (Sec. 1449c, 1935 Cum. Supp., Gen-eral Statutes of Connecticut.)
"Any savings bank * * * may, with the approvalof the bank commissioner, (1) establish and operateone or more branches within the town in which suchsavings bank is located; (2) establish and operateone or more branches in any town or towns withinthis state, in which there is no savings bank or com-mercial bank soliciting or receiving savings depositsat the time such branch is established; (3) continueto operate, as a branch in the same or approximatelythe same location, the business of any other savingsbank or the savings department of any state bankand trust company, which business has been acquiredby purchase, consolidation or merger under the pro-visions of the general statutes." (Sec. 1483c, 1935Cum. Supp., General Statutes of Connecticut.)
"No private banker shall establish any branch oropen any new place of business, * * *." (Sec. 3959,General Statutes of Connecticut, 1930.)
"Nothing * * * shall be construed to permit anybuilding and loan association, industrial bank or pri-vate banker located within this state to establish anybranch, office or agency thereof, or employ any agentor person to make loans, at any place other than itsdesignated place of business." (Sec. 1531c, 1935Cum. Supp., General Statutes of Connecticut.)
"No banking corporation, unless organized underthe laws of this state and specifically empowered todo a banking business in this state, shall maintainany branch * * * within the state for the purposeof soliciting deposits or carrying on a general bank-ing, a savings banking or a banking and trust busi-ness. The provisions of this act shall not api)ly toany national banking association the main office ofwhich is situated in this state." (House Bill No.196, approved, June 9, 1939.)
Capital required.—State banks and trust com-panies must have combined capital and surplus ofnot less than $1,000,000 in order to establish intra-city branches; and for each branch in other towns,must have combined capital stock and surplus suffi-cient to operate a bank or trust company in suchother towns in addition to the said $1,000,000. (Sec.1451c, 1935 Cum. Supp., General Statutes of Con-necticut.)
"Any savings bank with an unimpaired surplusequivalent to not less than ten per cent of its depositsmay, * * * establish and operate one or more branches* * *." (Sec. 1483c, 1935 Cum. Supp., General Stat-utes of Connecticut.)
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DELAWARE
Limited branch banking permitted.—If any statebank or trust company, other than a mutual savingsbank, "shall desire to open a branch office in the citywhere it does business, it shall make application to theBoard of Bank Incorporation who shall inquire intothe matter, and if it shall deem that the public con-venience will be served thereby and that there isgood and sufficient reason that the corporation shouldhave such branch office, it shall issue a written per-mission for the opening of such branch office in thecity where the corporation is doing business, providedthat no corporation shall be allowed more than twobranch offices; and provided further that no branchoffice shajl be maintained by any corporation doingbusiness in a city of a population less than one hun-dred thousand." (Sees. 2370, 2389, Revised Code ofDelaware, 1935.)
«* * * nothing in this Article contained shall bedeemed or held to authorize or enable any bank ortrust company * * * to establish a branch bank ortrust company, or to open a branch office unless suchbranch office be in accordance with the provisionsof Section 132 [Sec. 2389, above] of this Act. * * *"(Sec. 2399, Revised Code of Delaware, 1935.)
Capital required.—No additional capital is re-quired.
Note: Section 2292 of the Revised Code of Dela-ware, 1935, contains certain provisions relating toestablishment of branches. However, it is under-stood that the first three paragraphs of section 2292were enacted in 1921 and that the last paragraph ofthis section, which was enacted in 1933, has the effectof rendering ineffective the provisions of the sectionafter January 1, 1934. Accordingly, branches inDelaware are now established under the provisionsof Sections 2389 and 2399 rather than those of sec-tion 2292, and the provisions of section 2292 are notset forth herein.
DISTRICT OF COLUMBIA
Branches permitted.—"No corporation shall engagein or do the business of a bank of deposit or a fidu-ciary business in the District of Columbia nor shallany branch be established to carry on any phase ofsuch banking or fiduciary business in the Districtof Columbia until the approval and consent of theComptroller of the Currency is secured. The term'branch* as used in this section shall be held to in-clude any branch bank, branch office, branch agency,additional office, or any place of business located inthe District of Columbia, at which deposits are re-ceived, or checks paid, or money lent, or at which thepublic is served or any phase of business conductedby the parent institution." (Sec. 300, Chap. 9, Title5, Code of Laws of District of Columbia, Supp. IV.)
Capital required.—No additional capital is re-quired.
FLORIDA
Branches prohibited.—The "place of business ofeach banking company shall be in the city or townspecified in its charter, and the usual business ofany such banking company shall be transacted at anoffice or banking house located in the city or townso specified and not elsewhere." (Sec. 6070, Com-piled General Laws of Florida, 1927.)
Morris Plan Banks have "the right to lend moneyin other cities and towns within the State otherthan that in which the Bank is located and the rightto maintain offices in such other cities and towns forthe purpose only of making such loans and accept-
ing periodical cash installments in anticipated re-tirement thereof. Such additional offices may not,however, accept demand deposits or time depositsfrom investors or others." (Sec. 6150(5), 4th Div.,Compiled General Laws of Florida, Permanent Supp.)
GEORGIA
Limited branch banking permitted.—After Au-gust 25, 1927, "no new or additional branch banksshall be established." (Sec. 1, Act approved Aug.25, 1927; Sec. 13-203 Code of Georgia, 1933.)
State banks "having their principal office in acity now or hereafter having a population of notless than eighty thousand, or more than one hundredand twenty-five thousand, may establish branchbanks in the city in which its principal office islocated." (Acts of 1929, page 214; Sec. 13-203, note,
ode of Georgia, 1933.)State banks "having their principal office in a
municipality now or hereafter having a populationof not less than 200,000 according to the last censusof the United States or any future census of theUnited States, may establish branch banks in themunicipality in which its principal office is located."(Acts of 1929, pages 214-215; Sec. 13-203, note, Codeof Georgia, 1933.)
Capital required.—No additional capital is re-quired.
Other branch banking provisions.—There are alsoprovisions permitting the continuance of branchesestablished prior to August 25, 1927; relating to theselection of the officers of the branch; the settingaside each year for the use of the branch of acertain portion of the bank's capital; and the taxa-tion of branches. (Sec. 1, Act approved August 25,1927; Sec. 13-203, Code of Georgia, 1933.)
"Bank" defined.—"The term 'bank' as used in thisAct means any moneyed corporation authorized bylaw to receive deposits of money and commercialpaper, to make loans, to discount bills, notes, andother commercial paper, to buy and sell bills of ex-change, and to issue bills, notes, acceptances or otherevidences of debt, and shall include incorporatedbanks, savings banks, banking companies, trust com-panies and other corporations doing a banking busi-ness in this State, * * *." (Sec. 13-201, Code ofGeorgia, 1933.)
IDAHO
Branches permitted.—"No bank shall maintain anybranch bank office except as hereinafter provided.Any corporation organized under the laws of Idahoand authorized to engage in the banking and/ortrust business may, with the approval of the Com-missioner of Finance, establish and operate branchbanking offices for the transaction of its businesswithin the limits of the city, town, or village, inwhich it is situated, or at any point within thisstate, * * *. Branch banking offices shall not beestablished in any city, town, or village, in whichthere is located a bank or banks, state or national,regularly transacting a customary banking businessunless the corporation establishing such branch bank-ing office shall take over an existing bank, or obtainconsent of all banks there located. No unit bankhereafter organized and operating at a point wherethere are other operating banks, state or national,shall be permitted to be acquired for the purposeof establishing a branch banking office of a branchbank until said unit bank shall have been in opera-tion as a unit bank for a period of five years." (Sec.25-1001, Idaho Code Anno., 1932, as amended byCh. 109, Laws of 1935.)
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Capital required.—"* * * such corporation shallhave a paid-in capital stock of not less than $100,000and a surplus fund, paid-in or earned, in the amountof not less than ten per cent of its capital stock.* * * but no such corporation shall establish ormaintain branch banking offices unless its paid-incapital stock shall, in the aggregate, amount to atleast $25,000 for each of the banking offices, andfrom and after the effective date of this Act no newbranch bank or new branch office of any bank shall beestablished unless the corporation establishing thesame has a paid-in and unimpaired capital stock inan amount not less than the minimum capital stocknow required * * * for a national banking associa-tion establishing and operating new branches out-side the city, town or village in which such associa-tion is situated * * *." (Sec. 25-1001, Idaho CodeAnno., 1932, as amended by Ch. 109, Laws of 1935.)
Other branch banking provisions.—There are alsoprovisions as to the fees required for the establish-ment of branches (Sec. 25-208, Idaho Code Anno.,1932, as amended by Ch. 51, Laws of 1935) ; and theeffect of the failure to establish and operate a branchafter its approval. (Sec. 25-209, Idaho Code Anno.,1932, as amended by Ch. 73, Laws of 1935.)
"Bank" defined.—"The word 'bank' as used in thisAct, shall be construed to mean any incorporatedbank or institution (except National Banks) whichshall have been incorporated to conduct the businessof receiving money on deposit or transacting a trustbusiness as herein defined, and shall be construed toinclude any individual, copartnership, or unincor-porated association engaged in the banking businessas herein denned, * * *." (Sec. 25-102, Idaho CodeAnno., 1932.)
ILLINOIS
Branches prohibited.—"No bank shall establish ormaintain more than one banking house, or receivedeposits, or pay checks at any other place than suchbanking house, and no bank shall establish or main-tain in this or any other state or country any branchbank, nor shall it establish or maintain in this stateany branch office or additional office or agency forthe purpose of conducting any of its business." (Sec.9, Ch. 16-V2, Smith-Hurd Illinois Anno. Stats.)
INDIANA
Limited branch banking permitted.—"Except ashereinafter otherwise provided, any bank or trustcompany may open or establish a branch bank inany city or town within the limits of the county inwhich the principal office of such bank or trustcompany is located, if there is no bank or trustcompany located in such city or town. Any bank ortrust company which is located in a city the popu-lation of which exceeds fifty thousand inhabitants,"may open branches "within the corporate limits ofsuch city, * * *; or any bank or trust companywhich is located in a city the population of whichexceeds twenty thousand but does not exceed fiftythousand inhabitants, * * *, may open withinthe corporate limits of such city not nearer thanone mile to any existing bank or trust company, onebranch bank * * *. No branch bank shall beopened or established without first having obtainedthe written approval of the department. * * *Before the department shall approve or disapproveany application * * * it shall ascertain and de-
termine to its satisfaction that the public convenienceand advantage will be subserved and promoted* * *; that there is no bank or trust companylocated in the city or town * * * if the applica-tion is for a permit to open or establish a branchbank in a city or town other than that within whichthe applicant bank or trust company is located; thatthe applicant bank or trust company has satisfiedthe capital and surplus requirements" for the estab-lishment of an intra-city branch in a city of over50,000 inhabitants; "and that the welfare of anyother bank already established in such city will notbe jeopardized." (Sec. 18-1707, Burns IndianaStats. Anno., 1933, as amended by Laws of 1937.)
Capital required.—"* * * two hundred and twenty-five thousand dollars of the capital and surplusof such bank or trust company actually paid in andunimpaired" for each intra-city branch establishedin cities of over 50,000 inhabitants. "* * * two hun-dred-thousand dollars of capital and surplus ofsuch bank or trust company actually paid in andunimpaired" for each intra-city branch establishedin cities exceeding 20,000 but not exceeding 50,000inhabitants." (Sec. 18-1707, Burns Indiana Stats.Anno., 1933, as amended by Laws of 1937.)
Other branch banking provisions.—"Any personwho shall violate any of the provisions of Section224 [Sec. 18-1707] of this Act, either individuallyor as an interested party, shall be deemed guilty ofa misdemeanor and upon conviction thereof shallbe fined in any sum not less than three hundred dol-lars nor more than one thousand dollars, or by im-prisonment for any period not less than thirty daysnor more than one year, or by both such fine andimprisonment." (Sec. 18-1708, Burns Indiana Stats.Anno., 1933.)
IOWA
Branches prohibited but limited "offices" per-mitted.—"No banking institution shall open or main-tain any branch bank. However, as may be author-ized by and subject to the jurisdiction of the bankingdepartment any banking institution may establish anoffice for the sole and only purpose of receiving de-posits and paying checks and performing such otherclerical and routine duties not inconsistent with thissection. No banking institution may establish anyoffice beyond those counties contiguous to the countyin which said banking institution is located, nor ina city or town in which there is already an estab-lished banking institution. No office shall be con-tinued at any place after a banking institution hasactually commenced business at that place. Nothingin this section shall prohibit national banks the priv-ileges of this section whenever they may be so author-ized by federal law." (Sec. 9258-bl, Code of Iowa,1935.)
Capital required.—No additional capital is re-quired for the operation of offices with limitedfunctions.
KANSAS
Branches prohibited.—"* * * The general busi-ness of every bank shall be transacted at the placeof business specified in its charter or permit, and itshall be unlawful for any bank to establish andoperate any branch bank or branch office or agencyor place of business." (Sec. 9-101, General Stats,of Kansas, 1935.)
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KENTUCKY
Branches unauthorized.—There are no provisionsin the laws of Kentucky permitting or prohibitingbranch banking.
However, the Kentucky Court of Appeals has heldthat a State bank may not establish branches (SeeBruner vs. Citizens Bank of Shelbyville (1909), 120S. W. 345) ; but, in a later decision, the Court ofAppeals held that a State bank may establish officesseparate and apart from its main office for the pur-pose of receiving deposits, paying checks and keepingrecords of such transactions, at least if such officesare within the municipal limits wherein the mainoffice of the bank is situated. (Marvin vs. KentuckyTitle & Trust Company (1929), 291 S. W. 17.)
LOUISIANA
Branches permitted.—Charter "shall provide forthe location in the parish of domicile of any bankingassociation of not more than two branch offices. * * *"(Sec. 547, Louisiana General Stats. Anno., 1939.)
All banks, trust companies and savings banks "nowlocated, or hereafter organized, in either of theparishes of Allen, Calcasieu or Jefferson Davis mayestablish, own and operate a branch bank or banksin any one or more of the other said named parishes."(Sec. 547.1, 547.2, Louisiana General Stats. Anno.,1939.)
«* * * Any savings, safe deposit, or trust andsavings bank may have one or more as hereinbelowprovided offices of discount and deposit within thelimits of the municipality or parish in which thesaid bank is located; * * * said savings, safe deposit,or trust and savings bank must first obtain a certifi-cate of authority from the state bank commissioner* * * no future political or legal subdivision of saidmunicipality or parish shall have the effect of inanywise affecting the right of such banks aforesaidto continue the existence, maintenance and operationof any such offices already established * * *." (Sec.588, Louisiana General Stats. Anno., 1939.)
Upon obtaining a certificate of authority from thebank commissioner, "* * * banks, savings banks andtrust companies are * * * authorized to openand maintain a branch office or branch offices inparishes wherein are no banks, savings banks andtrust companies;" and such branches may "* * *conduct all usual transactions authorized by the bank-ing laws of the state of Louisiana for branch offices."(Sees. 547.4, 547.6, 547.7, Louisiana General Stats.Anno., 1939.)
"No bank, savings bank and trust company shallopen and maintain any more than one branch officein any one parish, other than the parish of its dom-icil and any branch office opened and maintained inany parish shall be included in the number of branchoffices now authorized by law." (Sec. 547.5, Louisi-ana General Stats. Anno., 1939.)
Capital required.—Any savings, safe deposit, ortrust and savings bank, haying $50,000 of capitalmay establish one branch without limits of munici-pality or parish in which the said bank is located;two branches if capital between $50,000 and $75,000;three branches if capital between $75,000 and $100,-000; five branches if capital between $100,000 and$200,000; six branches if capital between $200,000and $250,000; seven branches if capital between$250,000 and $300,000; and one additional branchfor each $100,000. (Sec. 588, Louisiana GeneralStats. Anno., 1939.)
«* * * n o ba nking association or savings bank withcapital stock of less than $50,000 may locate or oper-ate branch offices; but this provision shall notapply to existing branch offices." (Sec. 547, Louisi-ana General Stats. Anno., 1939.)
"* * * to open and maintain a branch office orbranch offices in parishes wherein there are no banks,savings banks and trust companies," banks, savingsbanks and trust companies must have a "capital" of$100,000 or more. (Sec. 547.4, Louisiana GeneralStats. Anno., 1939.)
Other branch banking provisions.—There is also aprovision providing for the manner of assessment oftaxes on branches in different parishes and in differ-ent municipalities in a parish. (Sees. 686, 691.1,Louisiana General Stats. Anno., 1939.)
MAINE
Branches permitted.—"A savings bank may openand conduct branches in the city or town where itsmain business is located and in other cities or townsin the county of its location, or the adjoining coun-ties; provided, that before opening a branch in anyother city or town, it shall have received a warrantto do so from the bank commissioner, who shall issuesuch warrant only when satisfied that public con-venience and advantage will be promoted by theestablishment of such a branch. * * * The rightto open a branch shall lapse at the end of one year* * * unless it shall have been opened and busi-ness actually begun in good faith. * * * Anysuch branch may be closed or discontinued with theconsent of the commissioner, after such notice andhearing, if any, as in his judgment the public inter-est may require." (Sec. 32a, Ch. 57, Revised Stats.of Maine, 1930, as amended by Sec. 7, Ch. 222, Lawsof Maine, 1931.)
"No trust company now or hereafter organizedshall establish a branch or agency until it shallhave received a warrant so to do from the bankcommissioner, who shall issue such warrant onlywhen satisfied that public convenience and advant-age will be promoted * * *. No trust companyshall be permitted to establish a branch or agencyexcept in its own or an adjoining county, provided,however, that this limitation shall not prevent atrust company * * * from establishing a branchor agency in any city, town or village where there isno state bank regularly transacting customary bank-ing business or where a unit bank or branch of an-other bank is taken over * * *. The right to open abranch or agency shall lapse in 1 year * * * un-less the same shall have been opened and businessactually begun in good faith. * * * Any such branch oragency may be closed or discontinued by vote of thestockholders of the company, with consent of thebank commissioner, after such notice and hearing,if any, as in his judgment the public interest mayrequire." (Sec. 88, Ch. 57, Revised Stats, of Maine,1930, as amended by Ch. 34, Laws of Maine, 1933.)
Industrial or Morris Plan Banks are authorized"to establish branch offices or agencies in the man-ner and subject to the conditions prescribed for theestablishment of branches or agencies in the case oftrust companies." (Sec. 138, Ch. 57, Revised Stats,of Maine, 1930.)
Capital required.—A trust company, in order toestablish a branch in its own or adjoining county,must satisfy the bank commissioner "that the un-
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impaired capital stock of the parent institution issufficient to comply with the conditions of Section69" (minimum requirements for organization) "reck-oning the aggregate population of its home city ortown and of all cities and towns in which it is autho-rized by its charter to establish branches or agencies,including the one under consideration." A trustcompany, in order to establish a branch in any othercity or town where there is no state bank in opera-tion or where a unit bank or branch of another bankis taken over, must have "a paid-in and unimpairedcapital stock of not less than $500,000." (Sec. 88,Ch. 57, Revised Stats, of Maine, 1930, as amendedby Ch. 34, Laws of Maine, 1933.)
MARYLAND
Branches permitted.—"Any bank or trust com-pany organized under the laws of this State, isspecifically granted the power and authority toestablish and operate a branch or branches in theCity or County in which it is located or at any pointwithin the State, after having first obtained theapproval of the Bank Commissioner, which approvalmay be given or withheld in his discretion, andshall not be given until he shall have ascertained tohis satisfaction that the public convenience andadvantage will be promoted by the opening of anysuch branch or branches, and that said bank or trustcompany has complied with the other terms andconditions prescribed by this Article. Any bank ortrust company having an existing branch or branchesupon the effective date of this Act, may continue theoperation of such branch or branches without furtherapproval from the Bank Commissioner, subject, how-ever, to all of the other terms and conditions of thisArticle. This section shall not be construed as im-plying that the provisions of this Article have hereto-fore in any way prohibited the establishment oroperation of a branch or branches in the City orCounty in which any bank or trust company, organ-ized under the laws of this State is located, or atany point within this State." (Sec. 52B, Art. 11,Anno. Code of Maryland, 1935 Supp.)
« * * * With the approval of the Bank Commis-sioner, any mutual savings institution shall havethe right and authority to establish in the same city,town or village and maintain branches where itsguarantee fund equals the minimum requirement asto capital of State banks in the same locality."(Sec. 32, Art. 11, Anno. Code of Maryland, 1935Supp.)
Capital required.—The minimum capital requiredfor the organization of a bank "shall not apply toany person, co-partnership, incorporated bank, orother incorporated institution now engaged in thebanking business in this State, except in such caseswhere said person, co-partnership, incorporatedbanks or other incorporated institutions doing abanking business shall hereafter undertake to estab-lish a branch or branches outside of the city, townor village in which they are now located. In sucha case the foregoing provisions relative to capitaland surplus shall be complied with, by adding to thecapital and surplus of the parent institution, theamount that would be required hereunder if suchbranch or branches were separately incorporated.* * * » (The capital stock required is $25,000 fortowns of less than 15,000 inhabitants; $75,000 forcities with population between 15,000 and 50,000;$100,000 for cities with population between 50,000and 150,000; and $500,000 for cities of over 150,000
inhabitants. In addition a bank must have a surplusof 20 per cent of its capital stock.) " * * * nobranch shall hereafter be established by any bank,in the city, town or village, where said bank is nowlocated, until said bank conforms to the requirementsherein provided, as to the minimum amount ofcapital stock for banks in said city, town or village.For the purpose of this section the term 'Bank'shall include savings institutions having a capitalstock." (Sec. 20, Art. 11, Anno. Code of Maryland,1935 Supp.)
"In the event that any trust company hereafterestablishes a branch or branches outside of the city,town or village in which it is now located, it shalladd for each branch established, to its paid-in capitalthe following sums and twenty per cent (20%)thereof as additional surplus:" $25,000 for towns ofless than 15,000 inhabitants; $75,000 for cities withpopulation between 15,000 and 50,000; $100,000 forcities with population between 50,000 and 150,000;and $500,000 for cities of over 150,000 inhabitants,unless the surplus and paid-in capital is alreadysufficient. Provided, however, "that no branch shallhereafter be established by anv trust company in thecity, town or village where said trust company isnow located and engaged in business, until said trustcompany conforms to the requirements herein pro-vided as to the minimum amount of surplus andcapital stock for a trust company in said city, townor village." (Sec. 42, Art. 11, Anno. Code of Mary-land, 1935 Supp.)
MASSACHUSETTS
Limited branch banking permitted.—A savingsbank "may, with the written permission of and underregulations approved by the commissioner, maintainand establish one or more branch offices or depotsin the town where its banking house is located, orin towns not more than fifteen miles distant there-from where there is no savings bank at the timewhen such permission is given." (Sec. 25, Ch. 168>Anno. Laws of Massachusetts, 1932, as amended bySec. 8, Ch. 334, Acts of 1933.)
The office or offices of any savings bank mergedwith another pursuant to the requirements providedtherefor, "may, with the permission of and underregulations approved by the commissioner, be main-tained as a branch office or branch offices of thecontinuing bank." (Sec. 55, Ch. 168, Anno. Laws,of Massachusetts, 1932, as amended by Sec. 27, Ch.334, Acts of 1933.)
A trust company "may, with the approval of theboard of bank incorporation, establish and operateone or more branch offices in the town where itsmain office is located, or in any other town withinthe same county, not haying commercial bankingfacilities. * * * the restrictions in this section shallnot extend to branch offices authorized prior to Junefirst, nineteen hundred and thirty-four." (Sec. 45,.Ch. 172, Anno. Laws of Massachusetts, 1932, asamended by Sec. 3, Ch. 244, Acts of 1939.)
"Any office or offices of a trust company the busi-ness of which has been taken over" by consolidation,,merger or purchase of assets by a "trust companywhose main office is located in the same county, orany office or offices of a national banking associationthe whole or a substantial part of the assets of whichis purchased or otherwise acquired by a trust com-pany so located, may, with the approval of thecommissioner, be maintained as a branch office oroffices * * *." (Sec. 46, Ch. 172, Anno. Laws of
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Massachusetts, 1932, as amended by Sec. 4, Ch. 244,Acts of 1939.)
The usual business of a co-operative bank "shall betransacted at its office only, which shall be in thetown named in its agreement of association; butmoneys due the bank may be collected by the treas-urer, * * * in such other places as may be desig-nated by vote of the board of directors and approvedby the commissioner, and the bank may advertisethese branches in such manner as the commissionermay prescribe." (Sec. 11, Ch. 170, Anno. Laws ofMassachusetts, 1932, as amended by Ch. 144, Actsof 1933.)
No foreign banking corporation "shall have morethan two offices or places of business in the common-wealth." (Sec. 44, Ch. 167, Anno. Laws of Massa-chusetts, 1932.)
The board of bank incorporation may authorize a"banking company" (which includes a Morris planbank) "to establish and operate one or more branchoffices in the city or town in which it is authorizedto do business under this chapter or in any othercity or town within the same county." This shallnot apply to any branch office wherever located,established prior to January 1, 1935. (Sees. 1, 12,Ch. 172A, Anno. Laws of Massachusetts, 1932, asenacted by, Sec. 4, Ch. 452, Acts of 1935.)
Capital required.—In order for a trust companyto establish domestic branches, the aggregate totalof its capital, guaranty fund and surplus accountmust not be less than one-tenth of its aggregate de-posit liability, except that upon the reorganizationof any trust company in possession of the commis-sioner or of a conservator on June 1, 1934, or there-after, "the commissioner may authorize such trustcompany, notwithstanding the foregoing restrictions,to maintain" the office or offices of a trust companybusiness taken over by consolidation, merger, orpurchase, as provided in this section, "as branchoffices under such conditions as he may approve."(Sees. 45, 46, Ch. 172, Anno. Laws of Massa-chusetts, 1932, as amended by Sees. 3, 4, Ch. 244,Acts of 1939.)
MICHIGAN
Branches permitted.—With the approval of theCommissioner of Banking "Any bank may, * * *,establish and operate a branch or branches withinthe limits of the city or village in which said bankis located. * * *" The removal of such branch orbranches " * * * from one location to another withinthe same city or village * * * " is prohibited unlessthe prior consent of the Commissioner is obtained.The Commissioner " * * * shall not grant suchpermission unless * * * satisfied as to the necessityfor the establishment of such a branch and theprospects of successful operation if established."(Sec. 23.762, Michigan Stats. Anno.)
With the permission of the Commissioner ofBanking "Any bank * * * may establish and main-tain branches within any village or city other thanthat in which it was originally chartered * * *:Provided, however, That in such cases where theparent bank has its principal office in a city havinga population of seventy-five thousand or over * * *,such permission may be granted * * * only if suchbranch is to be within the same county as said parentbank or within twenty-five miles of the principaloffice of said parent bank: Provided further, That nobranch bank shall be established in a city or villagein which a bank is in operation" or if the establish-ment of a branch "would result in more than one
bank or branch bank to each three thousand popula-tion in the city or township where such branch isproposed to be located. * * *" The Commissionerof Banking must be satisfied as to the "necessity forthe establishment of such a branch and the prospectsof successful operation if established." (Sec. 23.762,Michigan Stats. Anno.)
With the permission of the Commissioner of Bank-ing, "any consolidated bank resulting from" a con-solidation under section 104 (Consolidation of Statebanks and trust companies; procedure; etc.), "andany state bank or national banking association whichpurchases the assets of a state bank" under section112 (Sale of assets of bank; procedure), may "estab-lish and operate as a branch or branches the con-solidating bank or banks or any bank which sellsits assets to another state bank or national bankingassociation * * *". (Sec. 23.867, Michigan Stats.Anno.)
Industrial banks may, with the consent of theCommissioner of Banking, establish "branch officesor places of business within the city or village inwhich its principal office is located but not else-where: * * * . " (Sec. 23.907, Michigan Stats.Anno.)
Capital required.—In order to establish and main-tain branches "within any village or city other thanthat in which it was originally chartered," the bankmust have "a capital of at least fifty thousand dol-lars * * *" and a "capital and surplus in anamount at least equal to the aggregate minimumcapital and surplus, respectively, required for theestablishment of a bank in each of the variousplaces where such bank and its branches are to belocated * * • * :» (Sec. 23.762, Michigan Stats.Anno.)
In the case of a "consolidated or purchasing bankor association" operating the "consolidating bankor banks or any bank which sells its assets to anotherstate bank or national banking association" as abranch or branches, "the consolidated or purchasingbank or association" must have an "unimpaired cap-ital of * * * at least fifty thousand dollars, and thecapital and surplus of such bank or association"must be "an amount at least equal to the aggregateminimum capital and surplus, respectively, requiredfor the establishment of a bank in each of the var-ious places where such bank or association and itsbranch or branches are to be located * * *."(Sec 23.867, Michigan Stats. Anno.)
Other branch banking provisions.—The Commis-sioner of Banking shall not approve the applicationfor the organization of a bank if its establishment"would result in more than one bank or branch bankto each three thousand population in the city ortownship where such bank is proposed to be located."(Sec. 23.754, Michigan Stats. Anno.)
As used in Section 23.762, the term "branch" in-cludes "any branch bank, branch office, branchagency, additional office, or any branch place of bus-iness at which deposits are received or checks paidor money lent." (Sec. 23.712, Michigan Stats. Anno.)
MINNESOTA
Branches prohibited.—"No bank or trust companyorganized under the laws of this state shall main-tain a branch bank or receive deposits or pay checkswithin this state except at its own banking house,* * *." (Sec. 7693, Mason's Minnesota Stats., 1927.)
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MISSISSIPPI
Limited branch banking permitted.—"Banks mayestablish branch banks under the restrictions pre-scribed in this act, but no branch bank may be estab-lished unless the parent bank shall have first ob-tained from the state comptroller, the attorneygeneral and the governor, or a majority thereof, acertificate that the public convenience and necessitywill be promoted by the establishment of such branchbank. * * *." (Sec. 662, Ch. 85, Mississippi Code1930 Anno., 1938 Supp.)
"Branch banks may be established within a radiusof one hundred miles of the parent bank providedthat no parent bank shall be permittted to establishmore than fifteen branch banks; provided furtherthat no parent bank shall be permitted to establish abranch bank in any town or city of less than 3,100population according to the last preceding Federalcensus where such town or city has one or more banksin operation." (Sec. 665, Ch. 85, Mississippi Code1930 Anno., 1938 Supp.)
"National banks are hereby granted the right andauthority to establish branches in this state, withthe same rights and under the same restrictions asstate banks establishing branches. * * *" (Sec.670, Ch. 85, Mississippi Code 1930 Anno., 1938Supp.)
Limited branch offices permitted.—"The statecomptroller may permit banks to establish branchoffices within the corporate limits of the city wherethe bank is domiciled when the population is notless than 10,000, and within the limits of the countywherein such bank is domiciled, and within the limitsof any county adjacent to the county within whichsuch bank in domiciled; provided no branch officeshall be established in any town or city of less than3,500 population where such town or city has one ormore banks or branch banks in operation. Suchoffices shall not be considered branch banks withinthe meaning of this act, and no additional capitalshall be required therefor. Such branch offices shallnot make loans, or do anything in connection withthe making of any loan by the parent or any otherbanks, except to receive and transmit application forloan to such parent or other bank." (Sec. 664. Ch.85, Mississippi Code 1930 Anno., 1938 Supp.)
Capital required.—"All parent banks permitted toestablish branch banks shall have a paid-in, unim-paired capital (exclusive of reserves and undividedprofits) of not less than $100,000.00, and such mini-mum required capital shall be increased for eachbranch bank established by an amount not less thanthe minimum required capital for a unit bank inthe municipality in which the branch bank shallbe established. Such portion of the $100,000.00minimum capital required by this section may berepresented by any class or classes of preferredstock as may be approved by the state comptroller,but no branch banking system shall be allowed tocontinue operation if the capital stock thereof at anytime be reduced below $100,000.00 plus an amountfor each branch bank not less than the minimumrequired capital for a unit bank in the municipalityin which such branch bank shall be established."(Sec. 666, Ch. 85, Mississippi Code 1930, Anno., 1938Supp.)
Other branch banking provisions.—"No branchbank in this state may be discontinued or abandonedwithout the consent in writing of the state comp-
troller first obtained. By and with such consentfirst obtained, branch banks may be moved fromone municipality to another within the territoryrestriction provided in this act. * * * " (Sec. 668,Ch. 85, Mississippi Code 1930, Anno., 1938 Supp.)
There are also provisions providing for: fee of$50.00 for each application; issue of stock upon an-nexation of a unit bank as a branch; the formulationby the state comptroller of rules and regulations forthe examination of branch bank systems; and stat-ing what shall be included in the name of the branchbank. (Sees. 662, 663, 667, 669, Ch. 85, MississippiCode 1930 Anno., 1938 Supp.)
"Bank" defined.—"Whenever the word 'bank* isused in any statute unless the context clearly showsthat it is intended to be limited in its applicationto a particular character of bank, it shall includetrust companies, savings banks, branches of banksand trust companies, and all other institutions sub-ject to the provisions of this chapter. * * * " (Sec.591, Ch. 85, Mississippi Code 1930 Anno., 1938Supp.)
MISSOURI
Branches prohibited.—"* * * no bank shall main-tain in this state a branch bank, or receive depositsor pay checks except in its own banking house."(Sec. 5354, Art. 2, Ch. 34, Missouri Stats. Anno.;re-enacted by House Bill 272, Laws 1939, effectiveJune 14, 1939.)
« * * * n o t^ygt company shall maintain in thisstate a branch trust company or receive depositsor pay checks except in its own banking house."(Sec. 5421, Art. 3, Ch. 34, Missouri Stats. Anno.)
MONTANA
Branches prohibited—exception.—"No bank shallmaintain any branch bank, receive deposits or paycheck, except over the counter of and in its ownbanking house. * * *" (Sec. 6014.112, RevisedCodes of Montana, 1935.)
"When any two or more banks located in the samecounty or in adjoining counties shall consolidate * * *the consolidated bank may, * * * upon the written con-sent of the Superintendent of Banks and under rulesand regulations promulgated by him, maintain andoperate offices in the locations of the consolidatingbanks." (Sec. 6014.154, Revised Codes of Montana,1935.)
Capital required.—A consolidated bank, in orderto operate offices in the locations of the consolidatingbanks, must have a paid-up capital of $75,000.00 ormore. (Sec. 6014.154, Revised Codes of Montana,1935.)
"Bank" denned.—"The word 'Bank,' as used inthis Act, shall be construed to mean any corporationwhich shall have been incorporated to conduct thebusiness of receiving money on deposit, or trans-acting a trust or investment business as hereinafterdefined. * * * Banks are divided into the followingclasses: (a) Commercial Banks, (b) Savings Banks,(c) Trust Companies, (d) Investment Companies,* * *" (Sec. 6014.2, Revised Codes of Montana,
1935.)NEBRASKA
Branches prohibited.—"No bank shall maintainany branch bank, receive deposits or pay checks,except over the counter of and in its own bankinghouse. * * *" (Sec. 8-1,118, Compiled Stats, ofNebraska, 1929.)
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NEVADA
Branches permitted.—State banks "may maintainbranch offices, but the location of the principal officeand the parent bank shall be within the State ofNevada, and the location of all branch offices shallbe fixed in the articles of incorporation, and addi-tional branches may be from time to time establishedby the board of directors with the written consentof the superintendent of banks. * * * " (Sec. 747—Tenth, Nevada Compiled Laws, 1929.)
Capital required.—"* * * Banks which shall havenot more than one branch within the county whereinis located the principal office and the parent bankshall have a paid-up capital and surplus of at least$60,000, and for every additional branch within suchcounty and for every branch of any bank, whichbranch is located in any county of the state otherthan that in which the principal office and parentbank is located, there shall be required at least$25,000 of capital and surplus in addition to theminimum requirements of this section." (Sec. 747—Tenth, Nevada Compiled Laws, 1929.)
Other branch banking provisions.—Every bankshall pay a license fee and an annual fee of "$100for each branch bank, or branch office, by it main-tained." (Sec. 747.46, Nevada Compiled Laws,1929.)
"Bank" defined.—"The words 'corporation,' 'as-sociation/ /banking corporation/ 'bank,' 'trust com-pany,' or 'banker,' as used in this act, shall referto and include banks, savings banks and trust com-panies, * * * " (Sec. 747.86, Nevada CompiledLaws, 1929.)
NEW HAMPSHIRE
Branches unauthorized.—There are no provisionsin the laws of New Hampshire permitting or pro-hibiting branch banking.
NEW JERSEY
Limited branch banking permitted.—State banks(other than savings banks) and trust companies"may, with the approval in writing of the commis-sioner [of Banking and Insurance], establish andmaintain branch offices or agencies for the trans-action of their business. Approval shall be given[by him] only if it appears * • * * that the estab-lishment of the branch office or agency will be ofpublic service * * *." Nor shall such approval"be given for the establishment of any branch officeor agency outside the municipality in which the bankor trust company is located, nor shall any bank ortrust company maintain and operate a branch officeor agency within the corporate limits of a munici-pality where the population is less than twentythousand, nor more than one branch where the pop-ulation is more than twenty thousand and not morethan forty thousand, nor more than two brancheswhere the population is more than forty thousandand not more than eighty thousand, and where thepopulation is more than eighty thousand the numberof branches shall be that which the commissionerdetermines. Nothing contained herein shall preventthe maintenance of any branch office or agency law-fully established prior to * * * [March 14, 1933]."(Sec. 14, Ch. 4, Title 17, Revised Stats, of NewJersey, 1937.)
There is also a statute providing for the holdingby the Commissioner of Banking and Insurance ofa public hearing before he shall authorize the estab-
lishment of a branch by a bank or trust company, andindicating how publication of this hearing shall bemade and who shall receive notice of such hearing.This statute also provides that where "applicationis made to establish and maintain a branch office oragency at a location then occupied by a bank, sav-ings bank, trust company or national banking as-sociation, in liquidation or in contemplation ofliquidation, the commissioner may act thereon im-mediately without the prior notice, publication andhearing above provided for, and if it appears to himthat the establishment and maintenance of thebranch office or agency will tend to continue anestablished banking business at the location andthat it is in the public interest that the establishedbanking business should be so continued, the com-missioner may approve the application, effectiveupon or after the discontinuance of the establishedbanking business by the corporation theretoforeoccupying the location." (Sec. 15, Ch. 4, Title 17,Revised Stats, of New Jersey, 1937.)
"When application shall be made by any bankor trust company to establish or maintain a branchoffice or agency at a location in the same countythen occupied by a bank, savings bank, trust com-pany or national banking association in liquidationor in contemplation of liquidation, the entire assetsof which have been or shall be purchased or other-wise acquired by the bank or trust company makingthe application, and it shall appear to the commis-sioner that the establishment and maintenance ofsuch branch office or agency will be of public serviceand will tend to continue an established bankingbusiness at that location, and the bank or trust com-pany making the application shall have the capitalrequired by section 17:4-14 of this title, the commis-sioner may approve the application immediately andwithout notice and effective upon or after the discon-tinuance of the established banking business by thecorporation theretofore occupying that location."(Sec. 17, Ch. 4, Title 17, Revised Stats, of NewJersey, 1937.)
There are provisions in connection with the mer-ger of banks with banks, trust companies with trustcompanies, or banks with trust companies, author-izing, upon the approval of the Commissioner ofBanking and Insurance, the establishment ofbranches at the location or locations of the office oroffices of the merged corporations in the same countyif the merger is under provisions authorizing themerger of such corporations in the same county, orthe establishment of branches in the same munici-pality if the merger is under provisions authorizingthe merger of such corporations in the same munic-ipality, provided the merged corporation has $50,000capital if a bank, or $100,000 if a trust company, foreach office to be maintained by it. The law alsoprovides that in the case of merger of corporationsin the same municipality, only one office may bemaintained if the population is less than 20,000; notmore than two offices if the population is between20,000 and 40,000; not more than three offices if thepopulation is between 40,000 and 80,000; and wheresuch population exceeds 80,000, only such number ofoffices as the Commissioner of Banking and Insurancemay approve. (Sec. 88, Ch. 4, Title 17, RevisedStats, of New Jersey, 1937.)
Any savings bank "incorporated under the lawsof this state may, with the written approval of thecommissioner [of Banking and Insurance], establish
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and maintain branch offices or agencies for thetransaction of its business. Approval shall begiven by the commissioner only if he is of the opinionthat the establishment of the branch office or agencywill be beneficial to the public, * * *. The branchoffice or agency shall be established only within thecorporate limits of the municipality in which the sav-ings bank is located, and no branch office or agencyshall be established in any municipality if the popu-lation thereof is less than twenty-five thousand,according to the latest decennial federal census, andnot more than one branch office or agency, if thepopulation of the municipality wherein it is locatedis, according to the census, less than fifty thousand,and no more than two branch offices or agencies, ifthe population of the municipality, according to thecensus, is less than one hundred thousand * * *."(Sec. 15, Ch. 6, Title 17, Revised Stats, of NewJersey, 1937.)
"A savings bank may discontinue any branch officeor agency with the written approval of the commis-sioner, upon such prior public notice as he shallprescribe." (Sec. 16, Ch. 6, Title 17, Revised Stats.of New Jersey, 1937.)
"The merged or consolidated savings bank maycontinue to maintain branch offices or agencies forthe transaction of its business established pursuantto law by either or both of the merging or consoli-dating banks." (Sec. 76, Ch. 6, Title 17, RevisedStats, of New Jersey, 1937.)
Capital required.—The establishment of suchbranch office or agency shall not be approved by theCommissioner of Banking and Insurance unless thecapital of such bank "actually paid in, in cash, ex-ceeds the amount required by law for the incorpo-ration of a bank by at least fifty thousand dollars,and that the capital of any such trust companyactually paid in, in cash, exceeds the amount re-quired by law for the incorporation of a trust com-pany by at least one hundred thousand dollars, foreach branch office or agency so established." (Sec.14, Ch. 4, Title 17, Revised Stats, of New Jersey,1937.)
The establishment of such branch office or agencyby a savings bank shall not be approved by the com-missioner unless, "according to its last annual re-port, [it has] a surplus of not less than five percent of the amount of its deposits, and in addition,fifty thousand dollars of surplus for each branchoffice or agency established, over and above the fiveper cent of the amount of deposits. * * *." (Sec.15, Ch. 6, Title 17, Revised Stats, of New Jersey,1937.)
Other branch banking provisions.—There is a pro-vision authorizing the change of location of a trustcompany of its principal or main office to the locationof a branch office or agency; and the change of loca-tion of a branch office or agency to the location ofits principal or main office. (Sec. 16, Ch. 4, Title17, Revised Stats, of New Jersey, 1937.)
NEW MEXICO
Branches prohibited but limited "agencies" per-mitted.—"Every bank shall be conducted at a singleplace of business, and no branch thereof shall bemaintained elsewhere; provided, however, that noth-ing herein contained shall be construed to prohibitany mercantile corporation which maintains a bank-
ing department in accordance with the provisions ofthis Act, from receiving deposits and buying andselling exchange at any of its branch stores;
"Provided, Nothing herein contained shall preventany bank from opening an Agency or Agencies, forthe purpose of accepting deposits, cashing checksand buying and selling exchange, in the same countyin which said bank is located, in an adjoining countyif there be no bank in operation in such adjoiningcounty, or within a radius of one hundred (100)miles from said bank if there be no bank in operationin the county in which such Agency is opened; andprovided further, that a permit to open such Agencyor Agencies shall first be obtained from the StateBank Examiner."
A fee of $25.00 is made for the examination ofeach Agency, which shall be examined at the sametime the parent bank is examined. (Sec. 13-148, NewMexico Stats. Anno., 1929, 1938 Supp.)
Capital required.—No additional capital is re-quired for the operation of agency with limited func-tions.
"Bank" denned.—"The word 'Bank' as used inthis act includes every person, firm, company, co-partnership or corporation, except National Banks,engaged in the business of banking in the State ofNew Mexico. Banks are divided into the followingclasses: (a) Commercial Banks; (b) Savings Banks;and (c) Trust Companies." (Sec. 13-102, NewMexico Stats. Anno., 1929.)
NEW YORK
Limited branch banking permitted.—No bank ortrust company "or officer, director, agent or employeethereof, shall transact * * * its usual business* * * at any place other than its principal office,except as follows:
"(a) A bank or trust company in a city whichhas a population of more than thirty thousand mayopen and occupy in such city one or more branchoffices, whether or not such city is located entirelywithin one banking district, and
" (b) A bank or trust company may open andoccupy a branch office or branch offices in any city orvillage located in the banking district in which islocated its principal office, provided in no event shalla branch be opened and occupied pursuant to thisparagraph (b) in a city or village in which arealready located one or more banks, trust companiesor national banking associations, except for the pur-pose of acquiring by merger, sale or otherwise thebusiness and property of one or more of such banks,trust companies or national banking associations,whether in liquidation or doing business in the usualcourse.
"2. Hereafter before any branch or branches shallbe opened and occupied pursuant to paragraphs (a)and (b) of subdivision one of this section:
"(a) The superintendent shall have given hiswritten approval as provided in article two [section29] of this chapter and the banking board shallhave given its approval by a two-thirds vote of allthe members.
* * *"3. Any bank or trust company * * * may with
the written approval of the superintendent open andoccupy a branch office or branch offices in one ormore places located without the state of New York,either in the United States of America or in foreigncountries." (Banking Law, Sec. 105, as amended byCh. 495, Laws of 1939.)
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No savings bank, "or trustee, officer, agent oremployee thereof, shall transact * * * its usualbusiness * * * at any place other than its principaloffice except as follows:
"(a) A savings bank in a city which has a popu-lation of more than two hundred fifty thousand mayopen and occupy one branch office in such city, andwithin the county or borough in which its principaloffice is located [provided *3. * * * the superin-tendent' of banks gives his 'written approval andthe banking board' gives 'its approval by a two-thirds vote of all the members'] and,
"(b) A savings bank may, if the merger agree-ment so provides, maintain as a branch office, orbranch offices the place or places of business ofany savings banks which it has received into it-self * * *» (Banking Law, Sec. 240.)
Industrial banks may "establish branches pur-suant to article two [sec. 29] of this chapter in thecity in which is located its principal office, providedthe population thereof is not less than fifty thousand* * * ". (Banking Law, Sec. 292.)
Capital required.—For a bank or a trust company,"before any branch or branches shall be openedand occupied * * *
" (b) The actual paid-in capital stock of such bankor trust company shall exceed for each branch theamount required by section ninety of this articleby an amount equal to the minimum capital stockrequired for a bank located in the city or village inwhich such bank is to be located; provided that abank may continue to operate one branch openedprior to April twenty-seventh, nineteen hundredeight and thereafter maintained, for each fifty thou-sand dollars by which its capital stock exceeds theamount required by section ninety of this article."(Banking Law, Sec. 105, as amended by Ch. 495,Laws of 1939.)
A bank or trust company opening and occupying"a branch office or branch offices in one or moreplaces located without the State of New York, eitherin the United States of America or in foreign coun-tries" must have "a combined capital stock and sur-plus fund of one million dollars or over * * *."(Banking Law, Sec. 105, as amended by Ch. 495,Laws of 1939.)
Section 90 referred to above provides for theorganization of banks and trust companies andprovides in part that "* * * capital stock shallamount to not less than:
"(a) Twenty-five thousand dollars, if the placewhere its principal office is to be located is an in-corporated or unincorporated village the populationof which does not exceed two thousand;
"(b) Fifty thousand dollars, if the place whereits principal office is to be located is an incorporatedor unincorporated village or a city the populationof which exceeds two thousand but does not exceedthirty thousand;
"(c) One hundred thousand dollars, if the placewhere its principal office is to be located is a city thepopulation of which exceeds thirty thousand."(Banking Law, Sec. 90.)
For an industrial bank, "the capital stock of suchindustrial bank" must exceed "by one hundred thou-sand dollars for each branch the amount whichsuch industrial bank would otherwise be required tohave. This provision shall not effect any branchauthorized or established prior to June thirteenth,nineteen hundred thirty-seven." (Banking Law,Sec. 292.)
Other branch banking provisions.—If the superin-tendent of banks "finds upon investigation that thepublic convenience and advantage will be promotedby the opening of" a branch office by a State bank,trust company, or industrial bank "and, in the caseof a stock corporation, that such corporation has theamount of capital stock required * * * for the open-ing of such office", and if upon submission of theinstitution's application for such office to the bankingboard by the superintendent such board approvessame by a two-thirds vote of its members, the super-intendent "shall issue a certificate * * * author-izing the opening and occupation of such branchoffice", but not otherwise. (Banking Law, Sec. 29.)
The banking board may promulgate rules andregulations, inter alia, for the approval of the"opening of branch offices by banking organizations* * * " . (Banking Law, Sec. 14.)
The superintendent of banks shall keep posted, "ina place accessible to the general public * * * 7.The name of every banking organization which hasapplied for permission to open a branch office,* * * " and "8. The name of every banking organ-ization authorized to open a branch office, * * * ".(Banking Law, Sec. 42.)
"Banking district" denned.—"The state is herebydivided into nine banking districts, which shall bearranged as follows:
"The first banking district shall consist of thecounties Kings, Queens, Nassau and Suffolk;
"The second banking district shall consist of thecounties of Richmond, New York and Bronx;
"The third banking district shall consist ofthe counties of Westchester, Rockland, Putnam,Dutchess, Orange, Ulster and Sullivan;
"The fourth banking district shall consist of thecounties of Columbia, Rensselaer, Washington,Greene, Albany, Schenectady, Saratoga, Warren,Essex, Scholharie, Montgomery, Fulton, Hamilton,Otsego and Clinton;
"The fifth banking district shall consist of thecounties of Jefferson, Lewis, Saint Lawrence andFranklin;
"The sixth banking district shall consist of thecounties of Herkimer, Madison, Oneida, Onondaga,Oswego, Cayuga and Seneca;
"The seventh banking district shall consist of thecounties of Chemung, Schuvler, Tioga, Tompkins,Broome, Delaware, Cortland and Chenango;
"The eighth banking district shall consist of thecounties of Monroe, Wayne, Livingston, Ontario,Yates and Steuben;
"The ninth banking district shall consist of thecounties of Chautauqua, Cattaraugus, Allegany,Erie, Niagara, Wyoming, Genesee and Orleans."(Banking Law, Sec. 3.)
NORTH CAROLINA
Branches permitted.—"Any bank doing businessunder this chapter may establish branches in thecities in which they are located, or elsewhere, afterhaving first obtained the written approval of thecommissioner of banks, which approval may be givenor withheld by the commissioner of banks, in hisdiscretion, and shall not be given until he shallhave ascertained to his satisfaction that the publicconvenience and advantage will be promoted by theopening of such branch. Such branch banks shall beoperated as branches of and under the name of theparent bank, and under the control and direction ofthe board of directors and executive officers of saidparent bank. The board of directors of the parent
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bank shall elect a cashier and such other officers asmay be required to properly conduct the business ofsuch branch, and a board of managers or loan com-mittee shall be responsible for the conduct and man-agement of said branch, but not of the parent bankor of any branch save that of which they are officers,managers, or committee: * * *." (Sec. 220 (r),North Carolina Code, 1935.)
Every industrial bank shall have power "to estab-lish branch offices or places of business within thecounty in which its principal office is located, andelsewhere in the state, after having first obtainedthe written approval of the commissioner of banks* * * in his discretion: * * *." (Sec. 225 (f) (4),North Carolina Code, 1935.)
"Bank" defined.—"The term 'bank' shall be con-strued to mean any corporation, partnership, firm,or individual receiving, soliciting, or accepting moneyor its equivalent on deposit as a business: Provided,however, this definition shall not be construed to in-clude building and loan associations, Morris plancompanies, industrial banks or trust companies notreceiving money on deposit." (Sec. 216(a), NorthCarolina Code, 1935.)
Capital required.—"* * * the commissioner ofbanks shall not authorize the establishment of anybranch, the paid-in capital stock of whose parentbank is not sufficient in an amount to provide for thecapital of at least twenty-five thousand dollars forthe parent bank, and at least twenty-five thousanddollars for each branch which it is proposed to estab-lish in cities or towns of three thousand populationor less; nor less than thirty thousand dollars in citiesand towns whose population exceeds three thousand,but does not exceed ten thousand; nor less than fiftythousand dollars in cities and towns whose populationexceeds ten thousand, but does not exceed twenty-fivethousand; nor less than one hundred thousand dol-lars in cities and towns whose population exceedstwenty-five thousand. All banks operating branchesprior to February 18, 1921, shall, within a time limitto be prescribed by the commissioner of banks, causesaid branch bank to conform to the provisions of thissection: provided, however, that any bank with a cap-ital stock (including both common and preferred) ofone million ($1,000,000.00) dollars or more whichqualifies for non-assessable stock under the pro-visions of sections 219 (a) 1 et seq., may withoutadditional capital establish and operate such numberof branches or agencies in the state of North Caro-lina as the commissioner of banks may in his dis-cretion permit; but a bank operating branches underthis proviso shall at all times maintain an unim-paired capital of at least one million ($1,000,000.00)dollars: Provided further, that the commissioner ofbanks shall not permit the establishment of addi-tional branches, and/or agencies unless said bankmaintains its capital stock and surplus in ratio ofone to ten to its deposits; Provided that in smallcommunities having no other banking facilities, andupon a finding by the commissioner of banks that thepublic convenience and advantage will be promotedthereby, the opening of 'tellers window agencies orbranches' of then existing banks may be permitted,but no more than one such agency or branch may beso opened in any one community nor shall any bankbe permitted to open such an agency or branch whenits unimpaired capital and surplus" is less than 10per cent of its deposits. (Sec. 220(r), North Caro-lina Code, 1935.)
In connection with industrial bank branches, "thecommissioner of banks shall not authorize the estab-lishment of any branch the paid-in capital of whoseparent bank is not sufficient in amount to providefor the capital of at least twenty-five thousand dol-lars ($25,000.00) for the parent bank and at leasttwenty-five thousand dollars ($25,000.00) for eachbranch which it is proposed to be established in citiesor towns of fifteen thousand population or less; norless than fifty thousand dollars ($50,000.00) in citiesor towns whose population exceeds fifteen thousandbut does not exceed twenty-five thousand; nor lessthan one hundred thousand dollars ($100,000.00) intowns whose population exceeds twenty-five thou-sand." (Sec. 225(f)(4), North Carolina Code,1935.)
NORTH DAKOTA
Branches prohibited but limited "stations" per-mitted.—After "first applying for and receiving per-mission so to do from the" State Banking Board,"Any banking institution may establish and main-tain, within the County in which the home office ofthe applicant * * * is located or in any adjoiningCounty, * * *, a receiving and paying station in anycommunity not having an established banking insti-tution." (Sees. 1, 10, Ch. 93, Laws of North Dakota,1937.)
"No banking business shall be transacted in anysuch station other than receiving and paying outdeposits, issuing drafts, travelers' checks, and simi-lar instruments, handling and making collections,and cashing checks and drafts." (Sec. 4, Ch. 93,Laws of North Dakota, 1937.)
"This section shall not be construed as committingthe State in any manner to a policy of permittingbranch banking." (Sec. 8, Ch. 93, Laws of NorthDakota, 1937.)
Capital required.—"No additional capital is re-quired for the operation of said stations." (Sec. 9,Ch. 93, Laws of North Dakota, 1937.)
However, the Board "may issue a permit for theestablishment and maintenance * * * of such station,provided as a result of * * * investigation it shallfind that: * * * ; (b) * * * the capital of the ap-plicant bank is unimpaired * * *." (Sec. 3, Ch.93, Laws of North Dakota, 1937.)
Other branch banking provisions.—The applicationfor permission to establish a station shall be made"in such manner and in such form as" the Boardshall prescribe, "giving such information as theBoard may require * * *." At the time such appli-cation is filed, the applicant shall "pay to the Boardsuch sum as" it may designate, "not exceeding * * *Twenty-five Dollars * * * to defray" the Board's in-vestigation costs. (Sec. 2, Ch. 93, Laws of NorthDakota, 1937.)
After the requirements of section 2 (above) havebeen fulfilled, the Board shall "make an investigationand may issue a permit for the establishment andmaintenance * * * of such station, provided * * *it shall find that: (a) public convenience and ad-vantage will be promoted" thereby; "(b) that the[applicant's] management [is] good". No permitshall be granted "until all banking institutions with-in a radius of fifteen miles of the proposed situs,of any such * * * station" is given "at least thirty* * * days notice and * * * an opportunity to beheard." If the hearing indicates "that some otherbanking institution * * * is more favorably located,and can render better service to the community, theBoard may grant such favorably located institution
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the right to establish the station". (Sec. 3, Ch. 93,Laws of North Dakota, 1937.)
«* * * ftie * * * Board * * * may prescribe therules and regulations" for the operation of a station.(Sec. 5, Ch. 93, Laws of North Dakota, 1937.)
"No station shall be continued at any place after abanking institution shall have actually commencedbusiness at the same place. Whenever the * * *Board shall determine after investigation that thecontinued operation of any such station will nolonger promote public convenience and advantage,or that it will prove detrimental to the banking in-stitution operating such station, the Board may re-voke the permit for such station." (Sec. 6, Ch. 93,Laws of North Dakota, 1937.)
Whenever any banking institution operating sucha station deems the discontinuance thereof advisable,the Board, upon the bank's application, may author-ize the discontinuance of such station. (Sec. 7, Ch.93, Laws of North Dakota, 1937.)
OHIO
Limited branch banking permitted.—"No branchbank shall be established until the consent and theapproval of the superintendent of banks has beenfirst obtained, and no bank shall establish a branchbank in any place other than that designated in itsarticles of incorporation, except in a city or villagecontiguous thereto, or in other parts of the countyor counties in which the municipality containing themain bank is located, provided, however, that anybank may maintain and operate as a branch bank abank located in a county contiguous to the county orcounties in which the municipality containing themain bank is located, and which on the first day ofJanuary, 1935, and prior thereto, bore to the mainbank the relationship of affiliate within the meaningof that term as the same is used in the 1933 bankingact of the United States and the amendments there-to. If such consent and approval is refused, an ap-peal may be taken therefrom in the same manner asis provided in section 710-45 of the General Code."(Sec. 710-73, Baldwin's Ohio Code Anno., 1936.)
Capital required.—"No bank shall hereafter be per-mitted to establish a branch or branches * * * un-less such bank has, in addition to the minimumcapital herein required, sufficient capital equal to aminimum of thirty-five thousand dollars for eachsuch branch to be established in a village the popu-lation of which is less than five thousand; an addi-tional minimum of fifty thousand dollars for eachsuch branch to be established in a city or village thepopulation of which exceeds five thousand but doesnot exceed twenty-five thousand and an additionalminimum of one hundred thousand dollars for eachsuch branch to be established in a city, the popula-tion of which exceeds twenty-five thousand." (Sec.710-37, Baldwin's Ohio Code Anno., 1936.)
These capital requirements shall not apply to anybranches heretofore established. (Sec. 710-38, Bald-win's Ohio Code Anno., 1936.)
Other branch banking provisions.—There is a pro-vision as to yearly fees to be paid the State for theoperation of each branch. (Sec. 710-17, Supp. toBaldwin's Ohio Code Anno., 1936.)
"Bank" defined.—The term "bank" includes com-mercial banks, savings banks, trust companies, spe-cial plan banks, and unincorporated banks. (Sec.710-2, Supp. to Baldwin's Ohio Code Anno., 1936.)
OKLAHOMA
Branches unauthorized.—There are no provisionsin the Oklahoma banking laws permitting or pro-hibiting branch banking.
OREGON
Branches permitted.—"Any bank or trust company* * * may establish and maintain one or morebranch offices at any place within the state or Ore-gon; * * *."
"Any bank or trust company located in a countyof less than 200,000 population, according to the lastprevious federal census, may establish and maintainone or more branch offices at any place within thecounty or outside the county within the tributarytrade area as such may be determined by the super-intendent of banks; * * *."
"No branch shall be established in any city, town,village or community of less than 50,000 populationaccording to the last previous federal census wherethere is a national or state bank regularly transact-ing a customary banking business, except by takingover an existing national or state bank or trust com-pany or trust department within said city, town,village or community." (Sees. 22-3002, 22-3003,Oregon Code Anno., 1930, 1935 Supp.)
Every trust company with power to examine andguarantee titles to real estate may establish andmaintain branches for that purpose, provided thatsuch trust company shall not do any banking or trustbusiness at such branches. (Sec. 22-1213, OregonCode Anno., 1930, 1935 Supp.)
Capital required.—For state-wide branch banking,or for the establishment of any branch in the samecounty as the parent institution in those cases wherethe parent institution is located in a county havinga population of 200,000 or more, $1,000,000 unim-paired capital actually paid-in, but trust companiesnot receiving commercial or savings deposits needonly have $500,000 capital. The unimpaired capitaland surplus must equal the aggregate amount whichwould be required by law to organize banks in thoseplaces where the main office and branches are to belocated.
No minimum capital is required for the establish-ment of branches "within the same county or outsidethe county within the tributary trade area" if thecounty in which the bank or trust company is lo-cated has less than 200,000 population; but an unim-paired capital and surplus equal to the aggregateamount which would be required by law to organizebanks in those places where the main office andbranches are to be located is required. (Sec. 22-3002,Oregon Code Anno., 1930, 1935 Supp.)
There is a provision requiring foreign banks ortrust companies maintaining offices in this state to"maintain at every such office a capital of not lessthan the amount required by this act for the organi-zation of other banks or trust companies" and re-quiring every such foreign bank to "maintain a capi-tal and surplus which must equal at least 10 per centof the deposit liabilities of such foreign banks." (Sec.22-1303, Oregon Code Anno., 1930.)
Other branch banking provisions.—There are alsoprovisions as to the application to the superintendentof banks for the establishment of a branch; fee forfiling such application; advertising by the branch;reports to superintendent as to deposits received;removal or discontinuance of such branches, fees forexaminations; and related matters. (Sec. 22-3004—22-3013, Oregon Code Anno., 1930, 1935 Supp.)
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PENNSYLVANIA
Limited branch banking permitted.—Except asotherwise provided by this Act, no institution (de-fined by the Act as any bank, bank and trust com-pany, savings bank, trust company or private bank)shall "establish, maintain, or operate * * *, anybranch within this Commonwealth for the transac-tion of any part of its business * * *." But any suchinstitution "may continue to maintain and operateany branch lawfully established" by it. (Sees. 819-2,819-204, Title 7, Purdon's Pennsylvania Stats.)
"C. Any institution [as above defined] may, in thecase of an incorporated institution, in the mannerprovided by this act for an amendment to its articles,or in pursuance of a plan of merger or consolidation,in accordance with the provisions of this act, and inthe case of a private bank with the prior writtenapproval of the department [of Banking], establisha branch at any place within this Commonwealthwhere, at the time such institution proposes to estab-lish such branch, any national banking association,having its principal office in the same county as thatin which the principal office of the institution pro-posing to take such action is located, would have thepower, under the laws of the United States, now orhereafter enacted, to establish a branch of suchnational banking association." Or, subject to thesame conditions as specified above with reference toamendment of articles, prior written approval, etc.,any such institution may—
"D. * * * (1) establish a branch within the cor-porate limits of the city of the first class or the sec-ond class in which the principal place of business ofthe institution is located, or within the corporatelimits of the city or borough in which the principalplace of business is located, and in which the insti-tution was authorized by law to establish a branchon the first day of January, one thousand nine hun-dred and thirty-five, and may (2) establish a branchin any place within the county in which its principalplace of business is located, or in any place withinany county contiguous to the county in which itsprincipal place of business is located, if the city,borough or other community in which such branchis to be established is without adequate bankingfacilities, or, in the case of a merger or consolidation,is without adequate banking facilities other than anincorporated institution or national banking asso-ciation which is a party to the plan of merger orconsolidation in accordance with the provisions ofthis act.
"Provided, that an institution shall not have thepower to establish a branch in any county, other thanthe county in which its principal place of business islocated, if a branch is at the same time establishedor maintained, or is authorized by the articles of in-corporation, or otherwise, to be established or main-tained in any county, other than the county in whichits principal place of business is located by—
"(1) Another institution or national banking as-sociation with which such institution is affiliated; or
"(2) An institution or national banking associa-tion with which such other institution or nationalbanking association is affiliated; or
"(3) An institution or national banking associa-tion which is affiliated with any corporation or per-son with which such other institution or nationalbanking association is affiliated; or
"(4) An institution or national banking associa-tion which is affiliated with any corporation or per-son with which such institution is affiliated." (Sees.
819-2, 819-204, Title 7, Purdon's PennsylvaniaStats.)
"C. A private bank, which, upon the effective dateof this act, lawfully maintains one or more offices orplaces of business in any other state or foreign coun-try, may continue to maintain and operate any suchoffices or places of business * * *." (Sec. 819-203,Title 7, Purdon's Pennsylvania Stats.)
"E. Any merger or consolidation authorized bythis section shall not be effective if the effect thereofis to establish any branch bank, branch office, agency,sub-office, sub-agency, or branch place of business inviolation of the provisions of this act." (Sec. 819-1401, Title 7, Purdon's Pennsylvania Stats.)
Capital required.—"E. An institution shall nothave the power to establish any branch, unless, inthe case of a bank, a bank and trust company, or atrust company, its unimpaired capital and unim-paired surplus, respectively, are equal to an amount,not less than the aggregate capital and surplus, re-spectively, required by this act for the incorporationof such number of similar institutions, as is equal tothe total number of its places of business, includingsuch branch, excepting that, if any place of businessincluded in such total number is located or is to belocated in a borough or township, the population ofwhich does not exceed five thousand, not more thanfifty per centum of the capital and surplus, respec-tively, required by this act need be included for suchparticular place of business in the aggregate capitaland surplus respectively required by this section, andin the case of a savings bank, unless its surplus andexpense fund equal a minimum amount approved bythe department, and in the case of a private bank,unless its net worth equals a minimum amount ap-proved by the department." (Sec. 819-204, Title 7,Purdon's Pennsylvania Stats.)
Other branch banking provisions.—The term"branch" is defined to include "any branch office,agency, sub-office, sub-agency, or place of businessother than the principal place of business of an insti-tution, for the transaction of any portion of its bank-ing or trust business." (Sec. 819-2, Title 7, Purdon'sPennsylvania Stats.)
"A. Except as herein otherwise provided, an insti-tution shall not transact any banking or trust busi-ness, except in the case of an incorporated institu-tion, at the place or places designated in its articles,and, in the case of a private bank, at the place orplaces * * * filed with the Department of Banking.
«g * * *"Any change of the principal place of business of
an institution shall automatically terminate its rightto maintain and operate any branch located, or au-thorized by the articles of incorporation, or other-wise, to be located, in a county which is not con-tiguous to the county in which the principal place ofbusiness is to be located. * * *
"An institution may change the place of businessor any of its branches subject to the same require-ments and limitations as are by this act prescribedin the case of the establishment of branches." (Sec.819-203, Title 7, Purdon's Pennsylvania Stats.)
There are also detailed provisions relating to theprocedure to be followed by institutions proposingto establish branches; i. e., filing application, adver-tisement, notice, and approval or disapproval by theDepartment of Banking or by the Banking Board,etc. (Sec. 819-204, Title 7, Purdon's PennsylvaniaStats.)
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RHODE ISLAND
Branches permitted.—Any bank or trust company,savings bank, or loan and investment company(which includes a Morris plan company) "may estab-lish a branch or branches within this state at anyother place than its principal place of business uponobtaining the consent of the board of bank incorpora-tion thereof. Said board of bank incorporation shall,before giving such consent, require that a notice ofsuch intention to establish a branch or branches* * * shall be given for the same period of timeand in the same manner, and a hearing had thereon,as is provided in the case of incorporation" of suchorganization. (Ch. 129, Sec. 9, Ch. 130, Sec. 14, Ch.145, Sec. 5, General Laws of Rhode Island, 1938.)
Capital required.—No additional capital is re-quired.
SOUTH CAROLINA
Branches permitted.—No "branch bank" shall be"established without the approval in writing by theboard [of bank control]. Before * * * the estab-lishment of a branch bank shall be approved, theboard shall make an investigation to determinewhether * * * the establishment of such * * *branch bank would serve the public interest, takinginto consideration local circumstances and condi-tions at the place where such * * * branch bank,proposes to do business." (Sec. 7843, (3), Code ofLaws of South Carolina, 1932, 1936 Supp.)
There is also a provision permitting the organi-zation of small banks with lesser capital than thatrequired by the general laws, but which providesthat "no branch bank shall be organized under theprovisions of this section." (Sec. 7836-1, Code ofLaws of South Carolina, 1932, 1934 Supp.)
Capital required.—"Every banking company orcorporation hereafter organized shall * * * foreach branch bank that is established * * * have atotal unimpaired capital of at least twenty-five thou-sand ($25,000.00) dollars above the minimum re-quirements herein set forth." (Sec. 7835, Code ofLaws of South Carolina, 1932.)
"Branch banks are required to have subscribed toand paid in cash, or allocated to, for each branchestablished, the same amount of capital stock andsurplus as is now required for the establishment ofindependent banks in any given locality in SouthCarolina", namely, $25,000 in towns of 3,000 popu-lation or less; $50,000 in towns between 3,000 and10,000 population; and $100,000 in towns of over10,000 population. (Sees. 7835, 7836, Code of Lawsof South Carolina, 1932.)
Other branch banking provisions.—Provision isalso made for the publication of statements of theassets and liabilities of branch banks or offices, forthe examination of branch banks and fees therefor,for the appointment of a committee to representbranch banks upon liquidation, and for the taxation ofbranch banks. (Sec. 7859, Code of Laws of South Car-olina, 1932; Sec. 7843, (6), Code of Laws of SouthCarolina, 1932, 1936 Supp.; Sec. 7855, (7), Code ofLaws of South Carolina, 1932, 1934, Supp.; Sec.2677-1, (6), Code of Laws of South Carolina, 1932,1938 Supp.)
SOUTH DAKOTA
Branches permitted.—"A branch office or a branchbank may be conducted by a bank only with the per-mission of the Commission under such rules andregulations as the Commission shall prescribe, andsuch permission to be in the sole discretion of the
Commission. No branch office shall be operated inany city or town after any state or national bank hasreceived authority to operate in such town or city.Only one branch office shall be established in anytown or city.
"* * * Branch banks may be established by abank consolidating with or purchasing the assets ofanother bank. Except by purchase of, or consoli-dation with all existing banks located in such townor city, no branch bank shall be established in anycity or town of less than three thousand populationwhere there is an existing national or state bankregularly transacting banking business, or in anycity of more than three thousand population and lessthan fifteen thousand population where there aretwo or more existing national or state banks regu-larly transacting banking business.
"Any national bank whose principal place of busi-ness is in this state is hereby authorized to do allthings and perform all acts which state banks arepermitted to do or perform under this section, sub-ject to the conditions and restrictions provided forstate banks as to exercise of like privileges." (Sec.6.0402, South Dakota Code of 1939.)
Capital required.—"Any bank operating a branchbank or branch banks must have a paid-in and un-impaired capital of not less than the aggregate mini-mum capital required by law for the establishmentof an equal number of banks situated in the variousplaces where such bank and its branch bank orbranch banks are located and in any event not lessthan one hundred thousand dollars. * * *." (Sec.6.0402, South Dakota Code of 1939.)
Other branch banking provisions.—" *B ranch of-fice/ [is defined as] a branch place of business main-tained by a bank within the county of its domicileor an adjoining county to receive deposits, issuedrafts and cashier's checks, make change, pay checks,and other clerical and routine functions, but notincluding making loans and discounts;
" 'Branch bank/ [is defined as] a branch place ofbusiness maintained by a bank for conduct of bank-ing." (Sec. 6.0101, South Dakota Code of 1939.)
TENNESSEE
Limited branch banking permitted.—"No corpora-tion, firm, or individual, after said date [April 6,1925], shall create and operate any branch bank,office, or agency, for the purpose of receiving de-posits, paying checks, making loans, or receivingor discounting bills or notes in any place whatso-ever other than the county wherein its principal of-fice is located and its principal banking business iscarried on." (Sec. 5950, Williams Tennessee CodeAnno., 1934.)
"This law shall not apply to branch banks, offices,or agencies maintained and operated on April 6,1925, by any corporation, firm or individual doingor carrying on a banking business in the state inplaces other than the county of this state whereinsuch banking business is carried on." (Sec. 5949,Williams Tennessee Code Anno., 1934.)
Capital required.—No additional capital is re-quired.
TEXAS
Branches prohibited.—"* * * Such body corporate[banking corporation] shall not be authorized to en-gage in business at more than one place, which shallbe designated in its charter. * * *. (Constitution ofTexas, Art. 16, Sec. 16.)
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"No banking corporation organized under thelaws of this State shall ever engage in business atmore than one place, which shall be designated in itscharter. No such corporation shall maintain a branchbank, receive deposits or pay checks except in itsown banking house * * *." (Art. 538, Title 16,Vernon's Texas Civil Stats.)
UTAH
Branches permitted.—"The business of every bankshall be conducted only at its banking house andevery bank shall receive deposits and pay checksonly at its banking house except as hereinafter pro-vided.
"With the consent of the bank commissioner andthe approval of the governor [and subject to thecapital requirements set forth below], any bank* * * may establish and operate" branches "forthe transaction of its business within this state;* * *
"No branch bank shall be established in anv city,town or village in which is located a bank or banks,state or national, regularly transacting a customarybanking business, unless the bank seeking to estab-lish such branch shall take over an existing bank orobtain the consent of all banks therein located, exceptthat in cities of the first class, branches may beestablished without such consent; and, providedfurther, that whenever application is made for theestablishment of any branch, the commissioner shallgive notice thereof by publication in a newspaper ofgeneral circulation in the city or town in whichsuch branch is to be established and shall hold apublic hearing at a time and place within such cityor town, in such notice specified, at which time anycitizen may appear in support of or opposition tosuch application. No unit bank hereafter organizedand operating at a point where there are otheroperating banks, state or national, shall be permittedto be acquired by another bank for the purpose ofestablishing a branch until such bank shall have beenin operation as such for a period of five years.
* * *"The term 'branch' as used in this act shall be
held to include any branch bank, branch office,branch agency, additional office, or any branch placeof business at which deposits are received or checkspaid or money lent.
"Any bank desiring to establish one or morebranches or offices shall file a written applicationtherefor in such form and containing such informa-tion as the bank commissioner may require. No bankshall be permitted to establish any branch or officeuntil it shall first have been shown to the satisfac-tion of the bank commissioner and the governorthat the public convenience and advantage will besubserved and promoted by the establishment ofsuch branch or office and the bank commissioner mayby order permitting the establishment of such branchor office designate and limit the character of workand service which may therein be performed." (Sec.7-3-6, Utah Revised Statute Supplement, 1939.)
"* * * No loan and trust corporation [banks withtrust powers not included] shall open, establish ormaintain any branch office." (Sec. 7-4-7, RevisedStats, of Utah, 1933.)
Capital required.—For the establishment andoperation of one branch, a bank must have "a paid-incapital and surplus of not less than $60,000 * * *;provided, that for each additional branch establishedthere shall be paid in an additional $60,000 (capital
and surplus)." (Sec. 7-3-6, Utah Revised Stat.Supp., 1939.)
Other branch banking provisions.—There are pro-visions requiring the assessment of a $50 fee uponthe filing of an application for the establishment ofa branch, making the laws relating to the examina-tion of banks applicable to such branches and pre-scribing a fee for the examination thereof, and mak-ing violations of the law permitting the establish-ment and operation of branches misdemeanors. (Sec.7-3-6, Utah Revised Stat. Supp., 1939.)
VERMONT
Branches permitted.—"A bank or trust companyincorporated under the laws of this state may estab-lish and maintain agencies and branches for thegeneral transaction of a banking business in townsother than that in which its main office is located."(Sec. 6676, Ch. 272, Public Laws of Vermont, 1933.)
"Before a savings bank, trust company or a sav-ings bank and trust company opens an agency orbranch of such corporation it shall petition the com-missioner to hold a public hearing in the town wherethe proposed agency is to be located, to determinewhether the establishment and maintenance thereofwill promote the general good of the state.. The com-missioner shall thereupon appoint a time and placein such town for hearing the petition, and shall makean order for the publication of the substance of thepetition and of the time and place of hearing threeweeks successively in a newspaper published in thecounty wherein such town is situated, or, for wantthereof, in an adjoining county, the last publicationto be at least twelve days before the day appointedfor the hearing." (Sec. 6677, Ch. 272, Public Lawsof Vermont, 1933.)
"If after the hearing the commissioner finds andadjudges that the establishment and maintenance ofthe proposed agency will promote the general goodof the state, he shall give the bank a certificate tothat effect under his seal." (Sec. 6678, Ch. 272, Pub-lic Laws of Vermont, 1933.)
"A savings bank, trust company or savings bankand trust company shall not operate an agency notcertified by the commissioner as provided in thepreceding section." (Sec. 6679, Ch. 272, Public Lawsof Vermont, 1933.)
"An agency of a bank which was in operation withthe permission of the commissioner prior to Feb-ruary 1, 1929, shall be permitted to continue." (Sec.6680, Ch. 272, Public Laws of Vermont, 1933.)
"* * * Any two or more banks located and doingbusiness in this state, with the approval of the com-missioner, may merge or consolidate into a singlecorporation to engage in the business of a savingsbank or trust company, or merge or consolidate witha national bank, and the merged bank may establisha branch at any location at which the bank discon-tinued by such merger or consolidation might haveconducted its business." (Sec. 6660, Ch. 271, PublicLaws of Vermont, 1933, as amended by Sec. 1,Act No. 175, Laws of Vermont, 1935.)
"Subject to the approval of the commissioner* * *, any bank may, by contract, assume all orany part of the deposit and other liability of anyother bank or banks * * *. Contracts for the as-sumption of deposit liability may be entered intoindependently of merger of banks, or as a part ofany such merger, and may authorize the assumingbank to establish a branch at any location at whichsaid .other bank might have conducted its business.* * *. (Sec. 6660, Ch. 271, Public Laws of Vermont,
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1933, as amended by Sec. 5, Act No. 175, Laws ofVermont, 1935.)
Capital required.—No additional capital is re-quired.
VIRGINIA
Branches permitted.—"No bank or trust com-pany heretofore or hereafter incorporated under thelaws of this State shall be authorized to engage inbusiness in more than one place, except that, (a) inits discretion the State Corporation Commission mayauthorize banks having a paid-up and unimpairedcapital and surplus of fifty thousand dollars or overto establish branches within the limits of the city,town, or village in which the parent bank is located.
"(b) The State Corporation Commission may, inits discretion, also authorize banks located in anycity to establish branches within other cities havinga population of not less than fifty thousand inhabi-tants.
" (c) This section shall not be construed to pro-hibit the merger of banks in the same or adjoiningcounties or of banks located within a distance oftwenty-five miles of a parent bank and the operationby the merged company, of such banks, nor to pro-hibit the sale of any bank to, and the purchasethereof by, any other bank in the same or adjoiningcounties or within a distance of twenty-five milesand the operation of such banks by the purchasingbank, provided the approval of the State CorporationCommission is first had. The term 'adjoining coun-ties/ where more than two are involved, shall beconstrued to mean counties each of which shall ad-join the county in which the parent bank is located.
"(d) This section, however, shall not apply tobranch banks already established.
"(e) No branch bank heretofore or hereafterestablished shall be operated or advertised underany other name than that of the identical name ofthe home bank, unless permission be first had andobtained from the State Corporation Commission,and unless such different name shall contain or haveadded thereto language clearly indicating that it isa branch bank and of which bank it is a branch.
"Any bank or trust company violating the pro-visions of this section shall be liable to a fine of onethousand dollars, to be imposed and judgment en-tered therefor by the State Corporation Commission,and enforced by its process." (Sec. 4149 (14), Vir-ginia Code, 1936.)
Every bank having a branch or branches shall beassessed fifty dollars per branch as an examinationfee. (Sec. 4149 (56), Virginia Code, 1936.)
Capital required.—Banks or trust companies inorder to establish branches in the city, town or vil-lage in which the parent bank is located, must havea paid-in and unimpaired capital and surplus of fiftythousand dollars or over. (Sec. 4149 (14) (a), Vir-ginia Code, 1936.)
WASHINGTON
Branches permitted—limitations.—"* * * nor shallany bank or trust company establish any branchexcept in accordance with the provisions of this act.The practice of collecting or receiving deposits orcashing checks at any place or places other than theplace where the usual business of a bank or trustcompany and its operations of discount and depositare carried on shall be held and construed to beestablishing a branch: * * *". (Sec. 3222, Reming-ton's Revised Stats.)
A bank or trust company having a paid-in capitalof not less than five hundred thousand dollars may,with the approval of the supervisor of banking,establish and operate branches in any city or townwithin the state. A bank or trust company havinga paid-in capital of not less than two hundred thou-sand dollars may, with the approval of the super-visor of banking, establish and operate brancheswithin the limits of the county in which its principalplace of business is located.
"No bank or trust company shall establish or oper-ate any branch in any city or town outside the cityor town in which its principal place of business islocated in which any bank, trust company or na-tional banking association regularly transacts abanking or trust business, except by taking over oracquiring an existing bank, trust company or na-tional banking association or the branch of anybank, trust company or national banking associationoperating in such city or town." (Sec. 3231-1 Rem-ington's Revised Stats.)
No savings bank "or any officer or director thereofshall receive deposits or transact any of its usualbusiness at any other than its principal place ofbusiness or an authorized branch.
"A savings banks, with the approval of the su-pervisor of banking, may take over and operate onebranch in the city in which the principal place ofbusiness of the bank is located, but only upon theconditions and subject to the limitations following:
"(a) If the guaranty fund amounts to at leastfive hundred thousand dollars.
"(b) Not more than three branches may be estab-lished in the county in which the principal placeof business of the bank is located, and none in anyother county.
"(c) A branch shall not be established at a placeat which the supervisor of banking would not per-mit a proposed new savings bank to engage in busi-ness, by reason of any consideration contemplatedby section 4 of this act, being section 3316 of Rem-ington's Revised Statutes, the provisions of which,so far as applicable, including those relating to ap-peals, shall extend to applications to establishbranches." (Sec. 3344, Remington's Revised Stats.)
"The use of the term 'savings bank' in this actrefers to mutual savings banks only. * * *." (Sec.3378, Remington's Revised Stats.)
Industrial loan companies shall have power "Toestablish branches subject to the approval and au-thority of the supervisor of banking." (Sec. 3862-8,(d), Remington's Revised Stats., as amended byLaws of 1939.)
Capital required.—$200,000 paid-in capital inorder to establish branches within the same countyas the parent bank; and $500,000 paid-in capital inorder to establish branches elsewhere in the State.
"The aggregate paid-in capital stock of every bankor trust company operating branches shall at notime be less than the aggregate of the minimumcapital required by law for the establishment ofan equal number of banks or trust companies in thecities or towns wherein the principal office or placeof business of such bank or trust company and itsbranches are located." (Sec. 3231-1 Remington's Re-vised Stats.)
Mutual savings bank's guaranty fund must amountto at least $500,000. (Sec. 3344, Remington's Re-vised Stats.)
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870 FEDERAL RESERVE BULLETIN OCTOBER 1939
"Branch" of banks and trust companies denned.—"The term 'branch bank' where used in this act,means any office of deposit or discount maintainedby any bank or trust company, domestic or other-wise, other than its principal place of business, re-gardless of whether it be in the same city or locality."(Sec. 3221, Remington's Revised Stats.)
Foreign bank branch.—A branch of a foreign bankwhich was in operation within this State at thetime the act of 1917 became effective and whichbranch has a capital not less in amount than thatrequired for the organization of a State bank asprovided in that act at the time and place whenand where such branch was established, may con-tinue its business within the State. (Sec. 3248, Rem-ington's Revised Stats.)
WEST VIRGINIA
Branches prohibited.—"No banking institutionchartered and authorized to engage in business underthe laws of this state, shall hereafter install ormaintain any branch bank, or engage in business atany place other than at its principal office in thestate of West Virginia; * * *." (Sec. 3131, WestVirginia Code, 1937.)
WISCONSIN
Branches prohibited.—"* * * no bank shall estab-lish more than one office of deposit and discount orestablish branch offices or branch banks, providedthat this prohibition shall not apply to any branchoffice or bank established prior to May 14, 1909."(Sec. 221.04, (1), (f), Wisconsin Stats., 1937.)
No trust company shall "establish more than oneoffice of deposit nor establish nor maintain branches."(Sec. 223.06, Wisconsin Stats., 1937.)
Limited receiving and paying stations permitted.—"(1) Any bank may establish and maintain a re-ceiving and paying station in the manner providedin this section, in any community not having ade-quate banking facilities, anywhere within the countyin which the home office of the bank is located oranywhere in any adjoining county having a popula-tion of less than sixteen thousand, or in any othercounty if within the trade area of the home officeof the bank and not more than twenty-five milesfrom such home office, but no bank shall be permittedto establish, maintain or operate more than foursuch receiving and paying stations nor any suchstation within three miles of any other existing bankor an authorized receiving and paying station ofany other bank; however, any such station in opera-tion at the time of the passage of this act shall notbe subject to the three-mile limit.
"(2) Any bank desiring to establish such a re-ceiving and paying station shall make application tothe banking commission in such manner and in suchform as shall be prescribed by the commission, giv-ing such information as the commission may requireand shall at the time of filing the application payto the commission twenty-five dollars to defray thecost of investigation by the commission.
" (3) The banking commission shall thereupon esti-mate from the best sources of information at itscommand and by such investigation as it may deemnecessary whether public convenience and advantagewill be promoted by allowing such station to be estab-
lished and maintained, and the commission shall alsoinvestigate the management and the solvency of theapplicant bank, the adequacy of existing bankingfacilities and the surrounding territory from whichthe patronage would be drawn.
" (4) After completing such investigation, the com-mission shall make written report to the bankingreview board stating the results of its investigationand its recommendation. The said board shall con-sider the matter, conducting any hearing it maydeem necessary, and shall promptly make its de-cision approving or disapproving the establishmentand maintenance of the proposed station. The de-cision of the banking review board shall be final.
"(5) No bank when more than ten per cent of thestock is owned, held or controlled by any corporation,or by an association, investment trust or other formof trust or by a chain bank or holding company, shallbe permitted to establish a receiving and paying sta-tion.
"(6) No banking business shall be transacted inany such station other than receiving and paying outdeposits, issuing drafts and travelers' checks, han-dling and making collections, and cashing checksand drafts.
"(7) Whenever a paying and receiving stationshall be permitted to operate under this section, thebanking commission in each case shall prescribe therules and regulations for its operation.
"(8) Whenever the banking commission shall de-termine that the continued operation of any suchstation will no longer promote public convenienceand advantage, and that it will prove detrimentalto the bank operating such station, the commissionshall have written report thereon to the bankingreview board. Said board shall promptly considerthe matter and may hold a hearing thereon, andshall decide whether or not the permit to operatesuch station shall be revoked. If the review boarddecides that the permit shall be revoked, it shallcertify its decision to the banking commission andsaid commission shall forthwith order the discon-tinuance of such station within such time as thecommission may specify therein. A copy of saidorder shall be transmitted to the bank operating suchstation.
"(9) Whenever any bank, which has been granteda permit to establish and maintain such a receivingand paying station, shall deem it advisable to discon-tinue the maintenance of such station, it may makewritten application to the banking commission forthe cancellation of its permit, and the commissionshall thereupon enter its order, cancelling such per-mit, within such time as the commission may specifytherein.
"(10) This section shall not be construed as com-mitting the state in any manner to a policy of per-mitting branch banking." (Sec. 221.255, WisconsinStats., 1937, as amended by Laws of 1939.)
Capital required.—No additional capital is requiredfor the operation of offices with limited functions.
WYOMING
Branches unauthorized.—There are no provisionsin the laws of Wyoming permitting or prohibitingthe establishment of branches.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 871
DISTRIBUTION OF DEMAND DEPOSITS BY ECONOMIC CLASSES OF DEPOSITORS1933, 1935, AND 1936 1
On the basis of data compiled primarilyfrom corporation income tax returns, it hasbeen possible to estimate the distribution ofdemand deposits by economic classes of de-positors. Broadly speaking, it appears thatat the end of 1936 business enterprises held
TABLE 1
DISTRIBUTION OF DEMAND DEPOSITS * BY ECONOMICCLASSES OF DEPOSITORS
Unclassified—balances of in-dividuals, non-profit organi-zations, etc.4
24, 770 21, 860 15, 070
Amounts (Inmillions of dollars)
Dec.31,
1936
), 970 26, 600
5,200
8,480
3,690
1,340
1,6801,770
5,350
1,570
2801,240
530780
4,160
1,2402,920
6,780
Dec.31,
1935
4,740
7,640
3,450
1,0
1,5001,610
4,960
9201,740
001,060
440600
4,130
1,4602,670
5,130
Dec.31,
1933
17, 470
2,400
6,120
2,800
980
1,1201,220
2,390
560820
200440130240
2,690
1,0201,670
3,870
Per cent ofadjusted total
Dec.31,1936
100.0
14.9
5.4
6.87.1
21.
3.86.4
1.15.02.13.2
16.8
5.011.8
27.4
Dec.31,1935
100.0
34.9
15.8
4.9
6.97.3
22.7
4.28.00.4.92.02.7
18.
6.712.2
23.5
Dec.31,
1933
100.0
40.
18.6
6.5
7.48.1
15.
3.75.4
1.32.90.91.6
17.9
6.811.1
25.7
* Total demand deposits are partly estimated and exclude domesticinterbank deposits.
1 Includes amount reported as in process of collection by banks andestimated amount of items in transit between depositors. Method ofestimation explained in text.
2 Excludes professional service, agriculture, finance, transportation,and public utilities.
3 Includes foreign bank deposits with nonmember banks.4 Accounts of individuals with balances of $100,000 and over, as reported
by the 98 largest member banks, amounted to $280 million on December31, 1933, and $430 million on December 31, 1935. No similar informationis available for 1936.
1 Information regarding the distribution of demand deposits byeconomic classes of depositors was obtained for the first t ime inthe Board's survey of the ownership of large deposit accounts in1933 and in 1935. Mart in Krost, of the Board's Division of Re-search and Statistics, worked out methods of estimating the dis-tribution of total demand deposits by economic classes of deposi-tors and compiled estimates for the end of 1933 and 1935. Apaper based upon these estimates and including the results wasprepared by Lauchlin Currie, Assistant Director of the Division,and presented before the American Statistical Association in De-cember 1937 (published in the Journal of the American StatisticalAssociation, June, 1938). Haskell Wald, using techniques de-veloped in the early study, made estimates for the end of 1936(the latest date for which adequate data are available) and pre-pared the present report.
about one-third of the deposit balances inall checking accounts; financial groups, in-cluding foreign depositors and banks' trustdepartments, one-fifth; and public bodies one-sixth. The unclassified remainder, compris-ing mainly consumer balances, large balancesof individuals, and balances of non-profit or-ganizations and some unincorporated groupsfor which no estimates could be made,amounted to a little more than a fourth ofthe total. Table 1 presents a breakdown ofthese large categories into sub-groups andshows the distribution of demand deposits byclasses of depositors as of the end of the yearfor 1933, 1935, and 1936.
TABLE 2
SHIFT IN DEMAND DEPOSIT HOLDINGS BY CLASSESOF DEPOSITORS
1933 TO 1935 AND 1935 TO 1936[Amounts of change in millions of dollars]
Total demand deposits
Less—Items in transi t J
Total demand deposits adjustedfor transit items
Business—total __ _ _ _ __
Corporations engaged in:Manufacturing, mining, and
Unclassified—balances of indi-viduals, non-profit organiza-tions, etc
Increase fromDec. 31, 1933 to
Dec. 31, 1935
Amount
9,130
2,340
6,790
1,520
650
100
380390
2,570
360920
620310360
1,440
4401,000
1,260
Per cent
52.3
97.5
45.1
24.8
23.2
10.2
33.932.0
107.5
64.3112.2
140.9238.5150.0
53.5
43.159.9
32.6
Increase ordecrease (— ) from
Dec. 31, 1935 toDec. 31, 1936
Amount
3,370
460
2,910
840
240
260
180160
390
30-170
8018090
180
30
-220250
1,650
Per cent
12.7
9.7
13.3
11.0
7.0
24.1
12.09.9
7.9
3.3- 9 . 8
40.017.020.530.0
0.7
-15 .19.4
32.2
1 Method of estimation explained in text.2 Excludes professional service, agriculture, finance, transportation,
and public utilities.3 Includes foreign bank deposits with nonmember banks.
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872 FEDERAL RESERVE BULLETIN OCTOBER 1939
Between December 31, 1935 and December31, 1936, total demand deposits reported bybanks, when adjusted to conform to deposi-tors' accounting records, increased by $2,-900,000,000 or 13 per cent. As shown inTable 2, more than half of the total increasewas represented by the growth in the un-classified group. During 1936 balances in-cluded in this group increased 32 per cent,as contrasted with increases of 11 per cent,8 per cent, and 1 per cent for the business,finance, and public bodies groups respectively.
In evaluating the shifts in demand depositholdings over the period 1933 to 1936, twofactors affecting the comparability of thedata for the individual years should be noted.The abolition of the privilege of filing con-solidated income tax returns in 1934 probablymeans that certain holding companies werelisted under business categories in 1933 andunder finance in subsequent years. Thiswould have the effect of understating the in-crease in business balances and of overstatingthe increase in financial deposits. In addi-tion, the use of 1935 percentages to distributereported corporate "cash" for December 31,1936, between currency, time, and demanddeposits may mean that business and financeholdings are underestimated for the lateryear, and that the "unclassified" deposits areoverestimated, due to the increase in the ratioof demand to total deposits during 1936.
In general, estimates of the deposit hold-ings of corporations and public bodies arenot likely to be seriously in error. Theremay, however, be a considerable margin oferror for estimates of non-corporate holdingswhich are based in large part upon data thatrelate to 1929 and that are inadequate inother respects. It seems likely that the classi-fied amounts have been in varying degreeunderestimated, so that the amount of theunclassified remainder probably overstatesthe cash holdings of the groups covered.
There follows a brief description of themethods employed in building up these esti-mates.
Adjustment of total demand deposits fortransit items.—The estimates for individualclasses of depositors are made on the basis ofthe depositors' accounting records, as is illus-trated by the estimates for corporations,which are taken from their balance sheetrecords included in income tax returns.Total estimated demand deposits at banksmust be adjusted, therefore, to exclude twoclasses of transit items which have been de-ducted from deposit balances on the books ofthe depositors who drew them but have notyet been charged to those balances as theyappear on the books of the banks. The firstof these comprises checks and other itemsalready deposited by their recipients in banksand in process of collection between banks;for this amount, figures reported in the con-dition statements of the banks may be used.The second deduction comprises checks drawnbut not yet received or deposited in banks bytheir recipients; the amount of this type of"float" may only be estimated.
Since the same geographical distance usu-ally separates the drawer and the recipientof a check as separates their respective banks,and since the amounts of that part of the"float" that has already passed through abank and of that part which has not yet beendeposited are both determined by the amountof business transactions, it has been assumedfor the purposes of this study that the amountof the item in transit between depositors isequal to the amount of checks in process ofcollection between banks. Any error in theassumptions concerning the volume of checksin process of collection as reported by bankswill occur also in the estimate used here forchecks in process of transmission betweendepositors.
Holdings of corporations.—Corporate'cash" as reported in balance sheet items in-cluded in corporation income tax returns andpublished in Statistics of Income was dis-tributed between currency, demand, and timedeposits on the basis of percentages derivedfrom a study of large deposit accounts madeby the Board of Governors of the Federal
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 873
Reserve System as of selected dates in 1933and 1935 and summarized in the FEDERALRESERVE BULLETIN of September 1936, andfrom a special compilation prepared by theBureau of Internal Revenue from balancesheet data of corporations for 1935. Toallow for the fact that a small proportion ofthe corporation income tax returns, largelyfor small corporations, do not report balancesheets, estimates for corporations reportingbalance sheets were adjusted to a total for allcorporations by applying the ratio of totalcompiled receipts of all corporations to thetotal compiled receipts of the corporationsreporting balance sheet items. Separate fig-ures for the "cash" holdings of financialgroups other than banks were made availableby the Bureau of Internal Revenue.
Holdings of non-corporate business enter-prises.—The estimates of the demand depositholdings of non-corporate business were builtup by applying to the amounts estimated forcorporations ratios of non-corporate to cor-porate output in various industrial classes.These ratios were based essentially upon Bu-reau of the Census data for 1929 reclassifiedaccording to the industrial classification usedfor the corporation data in Statistics of In-come. Because of serious gaps in existinginformation, no estimates were made for cer-tain large categories of unincorporated busi-ness enterprise, notably agriculture, profes-sional service, and financial enterprises otherthan security brokers.
Reported holdings of other classes of de-positors.—The estimates for security brokerswere derived from data on the "cash" holdingsof all member firms of national security ex-changes which report regularly to the Boardof Governors of the Federal Reserve System.The figures for the demand deposits of theUnited States Treasury are the sum of Treas-ury deposits in the Federal Reserve banks asreported in the Federal Reserve bank state-ment and Treasury deposits in all other banksas reported in the Daily Statement of theUnited States Treasury. The demand de-posits of other public bodies are taken from
the condition reports of insured banks ascompiled by the Federal Deposit InsuranceCorporation.
Estimates of the deposits of bank trust de-partments were made on the basis of Comp-troller of the Currency figures for trustdepartments of national banks and of datapublished by the Federal Deposit InsuranceCorporation. Figures for foreign depositsare those reported to the Treasury and re-printed in the FEDERAL RESERVE BULLETINfor May, 1937, after an adjustment to excludea small amount of time deposits.
Unclassified deposit holdings.—The un-classified remainder includes largely con-sumer balances, the deposits of those typesof unincorporated business for which no esti-mates were made (professional service, agri-culture, various financial groups, etc.), depositbalances of fraternal, charitable, educational,and other non-profit organizations, and largepersonal balances of individuals which maybe held awaiting investments or for otherfinancial purposes. The latter should prop-erly be included under the "Finance" heading;but data, which were collected for a largesample in 1933 and 1935, as shown in a foot-note to Table 1, are not available for 1936.
Distribution of time deposits.—Because de-
TABLE 3
DISTRIBUTION OF TIME DEPOSITS * BY ECONOMICCLASSES OF DEPOSITORS
[In millions of dollars]
Total time deposits*
Business enterprises—total.
CorporateNon-corporate (excluding professional
service, agriculture, finance, trans-portation, and public utilities)
Financial enterprises—total _
CorporateNon-corporate.
Public bodies—total
Unclassified (balances of individuals, non-profit organizations, and those unin-corporated enterprises for which no sep-arate estimates could be made)
Dec. 31,1936
25, 400
570
110
440
290150
350
23, 930
Dec. 31,1935
24, 300
610
510
100
470
290180
410
22,810
Dec. 31,
21,840
1,0
940
140
400
200200
350
20,010
* Total time deposits are partly estimated and exclude domestic inter-bank deposits.
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874 FEDERAL RESERVE BULLETIN OCTOBER 1939
posits of corporations are mostly demanddeposits and because during the period 1933-1936 more than 90 per cent of total timedeposits were held by depositors in the un-classified group, the present report has beenprimarily concerned with demand deposits.The Board's survey of the ownership of largedeposit accounts and a special compilationprepared by the Bureau of Internal Revenueindicate that at the end of 1935 corporations
held only 8 per cent of their "cash" in theform of time deposits.
Following the methods used in the case ofdemand deposits, estimates were also madeof the distribution of time deposits by eco-nomic classes of depositors. The estimatesare summarized in Table 3. Figures for totaltime deposits include deposits with mutualsavings banks and with the Postal SavingsSystem. Postal Savings redeposits withbanks are excluded.
MEMBER BANK EARNINGS AND EXPENSES, FIRST HALF OF 1939
Net profits of member banks increasedsharply in the first six months of 1939 andwere larger than in any half-year periodsince the first half of 1937. These net profitswere at an annual rate of 7.0 per cent ontotal capital accounts. The increase reflectedchiefly larger profits derived from the sale ofsecurities and smaller charge-offs on loans.Recoveries, profits on securities sold, etc., ex-ceeded total losses and depreciation for thefirst time since 1936. Summary figures ofthe earnings, expenses, profits, and dividendsof member banks during recent half-year pe-riods are shown in the following table forpurposes of comparison.
EARNINGS AND EXPENSES OP MEMBER BANKS, BYHALF-YEAR PERIODS, JANUARY 1, 1937-JUNE 30,1939
[In millions of dollars]
Total current earningsTotal expenses. ___
Net current earnings _
Recoveries, profits on securities,etc.
Losses and depreciation
Net losses and depreciation. _Net profits
Cash dividends declared 2
1937
Firsthalf
652449
203
158166
8195
100
Secondhalf
669453
216
97172
75141
101
1938
Firsthalf
631448
183
137175
38145
99
Secondhalf
644443
201
142222
80121
99
1939
Firsthalfp
633447
186
191186
191
104
p Preliminary.1 Net recoveries, profits on securities, etc.2 Includes interest on capital notes and debentures.
Net current earnings during the first halfof 1939, though slightly above those in thefirst half of 1938, were lower than in anyother six-month report period since the firsthalf of 1935. The smaller net current earn-ings in the first half of 1939 as comparedwith the second half of 1938 resulted fromsmaller total earnings and somewhat largerexpenses. Although the amounts of bothloans and investments increased in the firsthalf of 1939, the rates of interest earned onthem decreased and the amount of interestincome from each of these sources also de-clined. While the major items of expenseswere reduced slightly, total expenses in-creased, reflecting chiefly a rise in "other"expenses.
Dividends declared during the first sixmonths of the current year amounted to$104,000,000, or at an annual rate of 3.8 percent of total capital accounts, as comparedwith an average of $100,000,000 for the fourpreceding half-year periods.
The half-year figures for many of the earn-ings and expense items are not representativeof the annual figures, particularly in the caseof valuation adjustments. These adjustmentsappear to be made on an annual basis and atthe year-end in many banks.
Detailed figures of member bank earnings,expenses, recoveries, losses, etc., for the sec-ond half of 1938 and the first half of 1939are shown on the following page.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 875
EARNINGS AND EXPENSES OF MEMBER BANKS
NATIONAL AND STATE MEMBER BANKS, BY SEMI-ANNUAL PERIODS, JULY 1, 1938 TO JUNE 30, 1939(Figures for national banks were compiled by the Comptroller of the Currency from reports submitted by national banks)
[Amounts in thousands of dollars]
Earnings:Interest and discount on loansInterest and dividends on investmentsCollection charges, commissions, fees, etcForeign departmentTrust department _ _Service charges on deposit accounts . __ __Rent receivedOther current earnings
Total current earnings
Expenses:Interest on time and savings depositsSalaries, officersSalaries and wages, employees (other than officers) _ __Fees paid to directors and members of executive, discount and
advisory committeesInterest and discount on borrowed moneyReal estate taxesOther taxesOther expenses
Total current expenses
Net earnings
Recoveries, profits on securities, etc.:Recoveries on loansRecoveries on investments-Profits on securities sold-All other
Total... .
Losses and depreciation:On loans.. _On investmentsOn banking house, furniture and fixtures . . .All other
Total losses and depreciation
Net profitsCash dividends declared 1
Loans2 . . . .Investments 2
Total deposits2 _ . . .Capital funds 2 3
Number of officers at end of periodNumber of employees (full and part time) at end of periodNumber of banks at end of period __ ._ _
Annual rates of earnings and of losses on loans:Interest and discount on loans per $100 of loans._Gross losses on loans per $100 of loans
Annual rates of earnings and of losses on investments:Interest and dividends on investments per $100 of investments.__Gross losses on investments per $100 of investments __ _Profits on investments sold per $100 of investments
Annual rates of earnings on capital funds:Net current earnings per $100 of capital funds _Net profits per $100 of capital funds
Total deposits per $1 of capital funds _ _Loans and investments per $1 of capital funds
All member banks
Secondhalf of
1938
274, 539224, 686
15, 8095,395
46, 67525, 84542, 0648,826
643, 839
83, 34674, 205
118, 559
3,697125
17, 54023, 351
121, 693
442, 516
201, 323
23, 85429, 94575, 03513,133
141, 967
77, 04787, 47826, 01532,166
222, 706
120, 58499, 399
13, 027, 59818 445 03142,147, 358
5, 400, 560
33,176154, 039
6,338
$4.211.18
2.44.95.81
7.464.477.805.83
Firsthalf of1939 P
272, 254222, 965
15, 4934,304
42, 09526, 78541, 2797,922
633, 097
82,12473, 875
116, 302
3,68079
17, 03826, 257
127, 274
446, 629
186, 468
23 98725, 838
127, 28714, 111
191, 223
47, 75694,08416,12128, 735
186, 696
190, 995103, 519
13,132, 03419 124 26344, 300, 962
5, 462, 514
34, 376156, 703
6,330
$4.15.73
2.33.98
1.33
6.836.998.115.91
National member banks
Secondhalf of
1938
188, 244152, 730
10, 8203,189
16, 85717, 93326, 2995,802
421, 874
59,17049,89473,123
2,63485
11,18914, 27475, 792
286,161
135, 713
16, 36817, 34945, 2488,888
87, 853
53, 34357,14015, 73911,351
137, 573
85, 99361,190
8, 355, 24712 092 65427, 268, 820
3, 295, 234
24, 96996, 7215,224
$4.511.28
2.53.95.75
8.245.228.286.21
Firsthalf of1939 P
187, 783150,133
10, 6582,346
14, 82118, 40725, 8554,904
414, 907
58, 64349, 37971,101
2,58951
10, 67516, 66680, 008
289,112
125, 795
17, 01317, 85384,1144,591
123, 571
31, 50658, 72611, 5559,405
111, 192
138,17466,163
8, 490, 26712, 430, 95428, 509, 402
3, 352,152
25, 96898, 3235,203
$4.42.74
2.42.94
1.35
7.518.248.506.24
State member banks
Secondhalf of
1938
86, 29571, 9564,9892,206
29, 8187,912
15, 7653,024
221, 965
24,17624, 31145, 436
1, 06340
6,3519,077
45, 901
156, 355
65, 610
7,48612, 59629, 7874,245
54,114
23, 70430, 33810, 27620, 815
85,133
34, 59138, 209
4, 672, 3516, 352, 377
14, 878, 5382,105, 326
8,20757, 3181,114
$3.691.01
2.27.96.94
6.233.297.075.24
Firsthalf of1939 P
84, 47172, 8324,8351,958
27, 2748,378
15, 4243,018
218,190
23, 48124, 49645, 201
1,09128
6,3639,591
47, 266
157, 517
60, 673
6,9747,985
43,1739,520
67, 652
16, 25035, 3584,566
19, 330
75, 504
52, 82137, 356
4, 641, 7676, 693, 309
15, 791, 5602,110, 362
8,40858, 3801,127
$3.64.70
2.181.061.29
5.755.017.485.37
p Preliminary.1 Includes interest on capital notes and debentures.2 For the second half of 1938 these are averages of figures reported on June 30, 1938, September 28,1938, and December 31,1938; for the first half
of 1939 they are averages of figures reported on December 31, 1938, March 29, 1939, and June 30, 1939.3 Represents the aggregate book value of capital stock, capital notes and debentures, surplus, undivided profits, reserves for contingencies, and
other capital reserves.Back figures—See BULLETIN for May 1939, p. 374, and Annual Report for 1937 (table 64) for annual figures.
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876 FEDERAL RESERVE BULLETIN OCTOBER 1939
CONDITION OF INSURED BANKS IN THE FIRST HALF OF 1939According to the consolidated statement
of condition of all insured banks in the UnitedStates as of June 30, 1939, which has justbeen published by the Federal Deposit In-surance Corporation, total loans increasedwhile investments declined at insured banksnot members of the Federal Reserve Systemduring the six months ending June 30, 1939.A discussion of the member bank figures wasgiven in the September issue of the BULLE-TIN. As shown in the following table, devel-opments at nonmember insured banks weresimilar to those at country member banks.A detailed statement of condition appearson the following page.
Total loans at nonmember insured andcountry member banks increased somewhatduring the first six months of 1939, largelyreflecting a growth in commercial loans anda further increase in real estate loans. Atcity banks loans for purchasing and carry-ing securities were reduced.
Investment holdings at nonmember in-sured banks declined by about $60,000,000during the period while those of countrymember banks declined by $165,000,000.These declines were in holdings of UnitedStates Government direct obligations and incorporate securities. Obligations of Statesand political subdivisions increased further
at both types of banks. At city banks hold-ings of investments rose considerably.
Following substantial increases during thelast half of 1938 there was little net changein adjusted demand deposits at nonmemberinsured and country member banks duringthe last six months. Time deposits, however,increased somewhat and balances with cor-respondent banks were built up further.Deposits at city banks showed a furthermarked rise.CHANGES IN CONDITION OF INSURED COMMERCIAL
BANKS, FIRST HALF OF 1939
[In millions of dollars]
Total loans and investments
LoansU. S. Government securities.Other securities
Due from banksDeposits:
Adjusted demand deposits 1.Time depositsU. S. Government deposits..Interbank deposits:
Banks in United States.Banks in foreign coun-
tries
Allinsuredbanks
+558
+16+531+11
+478
+1, 294+240
- 9 9
+592
+96
i Demand deposits other than interbankment less cash items in process of collection
2 Less than $500,000.
Member banks ofthe Federal Re-
serve System
Centralreserve
andreserve
citybanks
+537
-227+660+104
+273
+1, 262+91-87
+601
+97
Countrybanks
- 4
+161-106-59
+161
+31+104
- 7
- 4
(2)
and United States
Non-memberinsuredbanks
+25
+82- 2 3- 3 4
+44
+1+45
- 4
- 4
(2)
Govern-
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 877
CONDITION OF INSURED COMMERCIAL BANKS IN UNITED STATES AND POSSESSIONS,JUNE 30, 1939 AND DECEMBER 31, 1938
[Amounts in thousands of dollars]
June 30, 1939
All banks
Nationalbanks
membersFederalReserveSystem
Statebanks
membersFederalReserveSystem
Banksnot
membersFederalReserveSystem
December 31, 1938
All banks
Nationalbanks
membersFederalReserveSystem
Statebanks
membersFederalReserveSystem
Banksnot
membersFederalReserveSystem
Number of banks
ASSETS
Loans, discounts, and overdrafts (includingrediscounts)
United States Government obligations,direct and fully guaranteed
Other bonds, stocks and securities
Total loans and securities
Customers' liability on account of accept-ances
Total bank premises, furniture and fixtures,and other real estate
Reserves with Federal Reserve banksCoin and currencyBalances with other banksCash items in process of collectionIncome accrued but not yet collectedRepaid expensesOther assets
Total assets..
LIABILITIES
Demand deposits of individuals, partner-ships, or corporations
Time deposits of individuals, partnerships,or corporations
Public funds of states and political sub-divisions
U. S. Gov't and postal savings depositsDeposits of other banks; cash letters of
credit; certified, officers, and travelers'checks outstanding
Bills payable, rediscounts, and other liabili-ties for borrowing money
Acceptances executed by or for account ofreporting banks and outstanding
Dividends declared but not yet payable....Income collected but not yet earnedExpenses accrued and unpaidOther liabilities
Total liabilities, excluding capital ac-count
Capital stock, notes, and debentures.SurplusUndivided profitsReserves for contingenciesAll other capital accounts
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878 FEDERAL RESERVE BULLETIN OCTOBER 1939
REVISED INDEXES OF FACTORY EMPLOYMENT ADJUSTED FOR SEASONALVARIATION
The Board's seasonally adjusted indexes offactory employment have been revised to takeaccount of changes made in the employmentdata of the Bureau of Labor Statistics fromwhich the Board's indexes are derived.1
These changes resulted almost entirely fromadjustment of individual series to the levelsof employment shown by the 1937 Census of
Revised series for individual industries areshown since the beginning of 1935 in Table 3.Table 1 shows the initial year of each seriesand the average number of employees in the1923-1925 base period and in 1937.
Indexes for earlier years and seasonal ad-justment factors currently used for individ-ual industries are shown and described on
PER CENT
130
120
110
100
90
80
70
60
50
40
FACTORY EMPLOYMENT
ADJUSTED TO CENSUS OF MANUFACTURES THROUGH 1937, 1923-25 AVERAGE = 100
Manufactures and their net effect was toraise the total index gradually during 1936and 1937 so that since the end of 1937 ithas been about 3 per cent above the formerindex.2 The revised index of total factoryemployment is shown on the accompanyingchart, together with the corresponding indexof the Bureau of Labor Statistics, which isnot adjusted for seasonal variation.
Revised seasonally adjusted indexes areshown for total factory employment and foremployment by groups of industries for theperiod since the beginning of 1934 in Table 2.
1 Revised employment and payroll indexes, without seasonaladjustment, may be obtained from the Bureau of Labor Statistics.2 On the basis of experience with past adjustments, it is likelythat the index of total factory employment for the period sincethe end of 1937 will be raised further when subsequent censusadjustments are made in accordance with the regular practiceof the Bureau of Labor Statistics.
pages 835-866 of the FEDERAL RESERVE BUL-LETIN for October 1938.
The only seasonal adjustment factors re-vised were those for automobile employmentwhich were modified to allow for changessince 1935 in the dates of the introductionof new model cars. The new factors are asfollows:
Foundry and machine-shop productsMachine toolsRadios and phonographsTextile machinery and partsTypewriters and parts
1923
1929
192319231923192919231931
TRANSPORTATION EQUIPMENT 2
AircraftAutomobilesCars, electric- and steam-railroad..LocomotivesShipbuilding
19311919192319231923
NONFERROUS METALS AND THEIR PRODUCTS 2
Aluminum manufacturesBrass, bronze, and copper productsClocks and watches and time-recording
devicesJewelryLighting equipmentSilverware and plated wareSmelting and refining—copper, lead, and
zinc
19311923
1931193119311931
1931
LUMBER AND ALLIED PRODUCTS 2_FurnitureLumber:
MillworkSawmills
1919
19231923
STONE, CLAY, AND GLASS PRODUCTS 2
Brick, tile, and terra cottaCementGlassMarble, granite, slate, and other products.Pottery
19231919191919311923
Total durable goods industr ies 2 _
892.3
406.414.222.5
16.723.851.430.233.2
43.247.049.430.2
17.918.0
885.5
44.5
13.9
222.4
31.9397.528.329.430.714.0
563.52.8
402.763.519.454.4
249.415.365.1
21.825.122.617.0
33.9
909.9172.9
106.5478.5
350.3102.136.969.838.337.4
3, 851. 0
1, 021. 2
501.916.817.6
16.818.353.125.261.0
39.649.838.833.1
17.633.4
1,097. 6
77.5
20.6
257.2
32.9428.347.248.425.321.4
666.624.0
516.740.69.0
62.3
270.523.783.1
23.222.821.711.4
29.7
693.8170.0
66.7324.4
300.665.226.479.020.833.1
4, 017. 2
TEXTILES AND THEIR PRODUCTS 2
Fabrics2
Carpets and rugsCotton goodsCotton small waresDyeing and finishing textiles.Hats, fur-feltHosieryKnitted outerwearKnitted underwearKnitted clothSilk and rayon goodsWoolen and worsted goods...
Wearing apparel2
Clothing, men'sClothing, women'sCorsets and allied garments..Men's furnishingsMillineryShirts and collars
19231919193119191931192319231923192319191923
191919191931193119191919
LEATHER AND ITS MANUFACTURES 2_.Boots and shoesLeather
19191919
FOOD AND KINDRED PRODUCTS 2
BakingBeveragesButterCanning and preservingConfectioneryFlourIce creamSlaughtering and meat packing..Sugar, beetSugar refining, cane
1919193119311929192319191923191919311919
TOBACCO MANUFACTURESChewing and smoking tobacco and snufECigars and cigarettes
19231923
PAPER AND PRINTING 2
Boxes, paperPaper and pulpPrinting and publishing:
Book and jobNewspapers and periodicals
CHEMICAL, PETROLEUM, AND COAL PROD-UCTS2. 3
Petroleum refiningOther than petroleum refining 2
ChemicalsCottonseed oil, cake, and mealD i t ' ti
19191919
19231923
1923
Druggists' preparationsExplosives
tilp e s
FertilizersPaints and varnishesRayon and allied productsSoap
19291931192319231923193119291931
RUBBER PRODUCTSRubber boots and shoesRubber tires and inner tubes..Rubber goods, other
192319231931
Total nondurab le goods indus t r ies :
Total manufac tu r ing 2>4
1, 629. 41,105. 6
33.9441.8
15.765.115.797.534.246.66.5
125.7178.0474.1182.2127.715.320.031.857.6
323.5212.654.7
664.5162. 427.919.083.662.433.523.3
126.78.2
14.7
138.415.9
122.5
531.156.9
120.6
133.1116.9
331.464.8
266.657.014.513.75.9
18.523.916.016.2
134.325.275.733.4
4, 042.1
7, 893.1
1,814.11,111.7
30.8422.1
13.880.815.9
148.529.339.911.4
100.9154.7622.8214.1242.816.429.526.573.0
332.2215.550.6
888.1239.275.019.4
155.353.726.418.7
127.59 3
14.'0
92.210.181.9
618.665.2
137.8
141.1135.4
420.883.1
337.778.916.615.95.4
20.931.755.114.0
129.818.463.248.1
4,552.1
8, 569. 3
1 Number as reported by the Census of Manufactures for 1923, 1925, and 1937, with estimates for 1924. This table and indexes of factoryemployment shown elsewhere in the BULLETIN refer only to wage earners and other manual workers; supervisers, office workers, and othersalaried employees are not included.
2 This total includes allowance for other industries not currently reported.3 This group is comparable with the group formerly shown under the heading "Chemicals and Allied Products, and Petroleum Refining."* Excluding manufactured gas; motion pictures; coffee and spices; and peanuts, walnuts, and other nuts included in manufacturing by the
Bureau of the Census but not by the Bureau of Labor Statistics.
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880 FEDERAL RESERVE BULLETIN OCTOBER 1939
TABLE 2.—FACTORY EMPLOYMENT: TOTAL AND GROUP INDEXES
[Adjusted for seasonal variation. Adjusted to Census of Manufactures through 1937. 1923-25 average=100]
1 Includes industrial advances.NOTE.—For description of figures in this table and discussion of their significance, see BULLETIN for July 1935, pp. 419-429. Reprints of article
together with all available back figures, may be obtained upon request from Division of Research and Statistics. Back figures are also shown inAnnual Report for 1937 (tables 3 and 4) and for excess reserves in BULLETIN for August 1935, pp. 499-500. Averages of daily figures for recent monthsand years are shown in the table on p. 849.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 891
PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS[In thousands of dollars]
Wednesday figures
1939
Sept. 20 Sept. 13 Sept. 6 Aug. 30 Aug. 23 Aug. 16 Aug. 9
End of month
1939
August July
1938
August
Gold certificates on hand and due fromU. S. Treasury
Redemption fund—F. R. notesOther cash
Total reserves
Bills discounted:For member banksFor nonmember banks, etc _
Total bills discounted
Bills bought:Payable in foreign currencies
Industrial advancesU. S. Government securities, direct
and guaranteed:BondsNotesBills
Total U. S. Government securi-ties, direct and guaranteed
Other Reserve bank credit
Total Reserve bank credit out-standing
LIABILITIES
F. R. notes in actual circulation
Deposits:Member bank—reserve account.__U. S. Treasurer—general account..Foreign bank.Other deposits
i Includes industrial advances ]condition of the Federal Reserve
>ast due 3 months or more which are not included in industrial advances outstanding in weekly statement of)anks.
2 Includes applications approved conditionally by the Federal Reserve banks and under consideration by applicant.3 Does not include financing institution guaranties of advances and commitments made by Federal Reserve banks, which amounted to
$1,404,032 on September 20, 1939.4 Tuesday.6 September 27 not yet available.
FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS[In thousands of dollars]
Total Bos-ton
NewYork
Phila-del-phia
Cleve-land
Rich-mond
At-lanta
Chi-cago
St.Louis
Min-neap-olis
Kan-sas
CityDallas
SanFran-cisco
Federal Reserve notes:Issued to F. R. bank by F. R. agent:
Aug. 23Aug. 30Sept. 6Sept. 13Sept. 20
Held by Federal Reserve bank:Aug. 23Aug. 30Sept. 6Sept. 13Sept. 20
In actual circulation:1
Aug. 23Aug. 30Sept. 6Sept. 13Sept. 20
Collateral held by bank as security fornotes issued to bank:
Gold certificates on hand and duefrom U. S. Treasury:
1 Includes Federal Reserve notes held by the United States Treasury or by a Federal Reserve bank other than the issuing bank.
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896 FEDERAL RESERVE BULLETIN OCTOBER 1939
RESERVE POSITION OF MEMBER BANKS,AUGUST, 1939
[Averages of daily figures. In millions of dollars]
MEMBER BANK RESERVE BALANCESBY CLASSES OF BANKS
[Averages of daily figures. In millions of dollars]
Classes of banksand districts
All member banks _ _
Central reserve city banks:New YorkChicago
Reserve city banks:Boston districtNew York districtPhiladelphia district._Cleveland districtRichmond districtAtlanta districtChicago districtSt. Louis districtMinneapolis district..Kansas City district...Dallas districtSan Francisco district.
Total
Country banks:Boston districtNew York districtPhiladelphia district. _Cleveland districtRichmond districtAtlanta districtChicago districtSt. Louis districtMinneapolis district._Kansas City district.._Dallas districtSan Francisco district.
Total
Grossde-
mandde-
posits
Netde-
mandde-
posits ]
34, 668
12, 8011,657
1,132206
1,2581,614
728714
1,278807390
1,024702
2,160
12, 014
8551,290636595512478861362307464507330
7,197
28, 441
12, 0562,358
1,020163
1,0471,288567499891612266655438
1,715
9,161
962440415324290565234191279325213
4,867
Timede-
posits
11,724
729491
14725273220717557017990157128
1,935
4,6
5611,395876665349224720242271157104270
5,835
Reserves withFederal Reserve
banks
Re-quired
6,052
2,779561
18336
19626211096
18411651
12283
397
1,837
103185978356461044036414439
876
Held
10, 659
5,366923
3475035543816514128418781187120528
2,883
16834416113392711966559707551
1,486
Ex-cess
4,607
2,587
16414
1591765645
10071306537
131
1,046
6515964503625922523283112
611
i Gross demand deposits minus demand balances with domestic banks(except private banks and American branches of foreign banks) andcash items in process of collection.
NOTE.—See table at foot of p. 907 for percentages of deposits requiredto be held as reserves.
1 Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks.2 Includes unassorted currency held in Treasury and Federal Reserve banks and currency of unknown denominations reported by the Treas-
ury as destroyed.8 Paper currency only; $1 silver coins reported under coin.Back figures.—See Annual Report for 1937 (table 36).
TREASURY CURRENCY OUTSTANDINGHeld by Treasury and Federal Reserve
End of month
1938—AugustSeptember.OctoberNovember.December..
1939—JanuaryFebruary...MarchAprilM a y_ ^ —June ._JulyAugust
Total
2,7312,7392,7512,7732,798
2,8162,8242,8392,8492,8622,8812,8952,907
banks and in circulation. Inmillions of dollars]
Silverdollars
andsilverbul-
lion !
1,6081,6181,6341,6571,685
1,7051,7171,7331,7461,7591,7781 7941,804
Sub-sid-iary
silvercoin
375376376376376
376376377376377380381383
Minorcoin
157158158158159
159160160160161161162162
UnitedStatesnotes
347347347347347
347347347347347347347347
Fed-eralRe-
servebanknotes
3029292928
2827272726262625
Na-tionalbanknotes
214212208206203
201198196193191189186185
1 Includes silver held against silver certificates amounting to $1,704,-000,000 on August 31, 1939 and $1,534,000,000 on August 31, 1938.
SHIPMENTS AND RECEIPTS OF UNITEDSTATES PAPER CURRENCY
[By selected banks and financial institutions in New York City.In millions of dollars]
p Preliminary.1 Figures based on rate of $20.67 a fine ounce in January 1934 and $35
a fine ounce thereafter.2 Gold held under earmark at Federal Eeserve banks for foreign ac-
count on August 31, 1939, in millions of dollars: 1,135.4.NOTE.—Figures for domestic production of gold are those published
in table, p. 929, adjusted to exclude production in Philippines. Ad-justment based on annual figures reported by Director of Mint andmonthly imports of gold to U. S. from Philippines. For back figures,see Annual Report for 1937 (table 29).
BANK SUSPENSIONS*
Number of banks suspended:193419351936193719381939—Jan.- Aug ___
Deposits of suspended'banks(in thousands of dollars):3
1934.19351936193719381939—Jan.-Aug.
Total,all
banks
36,93710,01511,30619, 72313,01234,225
Memberbanks
Na-tional
405,313
5077,379
361,357
State
1,708211
25, 634
Nonmemberbanks
In-sured2
1,9123,76310,20710,15611, 7214,779
Notinsured
34,985939592480
1,0442,455
1 Represents licensed banks suspended; does not include nonlicensedbanks placed in liquidation or receivership.
2 Federal deposit insurance became operative January 1, 1934.' Deposits of member banks and insured nonmember banks suspended
are as of dates of suspension, and deposits of noninsured nonmemberbanks are based on the latest data available at the time the suspensionswere reported.
Back figures.See Annual Report for 1937 (table 76).
From or to—
BelgiumFranceGermanyNetherlandsSpainSwedenSwitzerlandUnited Kingdom.._CanadaMexicoCentral America. . .ArgentinaChileColombiaEcuadorPeruVenezuelaAustraliaBritish IndiaChina and Hong
KongJapanPhilippine Islands.All other countries2.
TotaL.
1939
August
Im-ports
22, 640215
163, 73934,3113,956
473
8662,120
207266337
5,6899,259
1,91210, 9312,775
238
259, 934
Ex-ports
13
July
Im-ports
1
45, 554
105,628
177, 80515, 2044,150
5391
1,1272,123
369226318
5,0342,760
1,19010, 9383,0222,647
278, 645
Ex-ports
Jan.-Aug.
Im-ports
165,1213,684
9298, 319
5943,86077,463
1,624,852108, 46023,9514,0084,505\ 475
16,9041,9582,5122,803
41, 37926, 459
11, 274107,096
23, 2134,757
2, 559, 656
Ex-ports
53129206
457
1 Figures represent customs valuations which, with some exceptions,are at rate of $35 a fine ounce.
2 Includes all movements of unreported origin or destination.Back figures—See table, p. 929, and Annual Report for 1937 (tables
31 and 32).
BANK DEBITS[Debits to individual deposit accounts, at banks in principal cities.]
1 Comprises centers for which bank debit figures are available begin-ning with 1919, except that one substitution was made in 1920 and onein 1928.
2 Cities (other than the 141 centers) for which bank debits are currentlyreported. The number has changed very little since 1934 and has num-bered 133 since 1936.
Back figures—Qee Annual Report for 1937 (Table 71), which also givesa definition of bank debits. Figures for individual reporting cities andtotals by Federal Reserve districts are available in mimeographed form.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 899
ALL BANKS IN THE UNITED STATESComprises all national banks in the continental United States and all State commercial banks, trust companies, mutual and stock savings banks
and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the periodJune 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports tothe Comptroller of the Currency. Under the amended provisions of sec. 21 (a) private banks no longer report to the Comptroller of the Cur-rency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve Bulletin forDecember 1935, p. 883, and July 1936, p. 535. Figures for nonmember banks are for dates indicated or nearest thereto for which figures areavailable.
NUMBER OF BANKS
Call date
1929—June 29Dec. 31
1933—June 30Dec. 30
1934—June 30Dec. 31
1935—June 29Dec. 31
1936—June 30Dec. 31
1937—June 30Dec. 31
1938—June 30Dec. 31
1939—Mar. 29June 30»
Total
25,11024,630
14, 51915,011
15,83516,039
15,99415,837
15, 75215, 628
15, 52715, 393
15, 28715, 206
15,15115,082
Member banks
Total
8,7078,522
6,6066,011
6,3756,442
6,4106,387
6,4006,376
6,3576,341
6,3386,338
6,3316,330
Na-tional
7,5307,403
4,8975,154
5,4175,462
5,4255,386
5,3685,325
5,2935,260
5,2425,224
5,2125,203
State
1,1771,119
709857
958980
9851,001
1,0321,051
1,0641,081
1,0961,114
1,1191,127
Nonmemberbanks
Mutualsavingsbanks
611609
576579
578579
571570
666665
564563
563556
555553
Othernon-
mem-ber
banks
15,79215, 499
8,3378,421
8,8829,018
9,0138,880
8,7868,687
8,6068,489
8,3868,312
8,2658,199
For footnotes see table below.
DEPOSITS, EXCLUSIVE OF INTERBANKDEPOSITS1
Call date
1929—June 29.. _Dec. 3 1 —
1933—June 30—Dec. 30—
1934—June 30Dec. 3 1 —
1935—June 29. __Dec. 3 1 —
1936—June 30Dec. 3 1 —
1937—June 30. . .Dec. 3 1 —
1938—June 30 __Dec. 3 1 —
1939—Mar. 29. . .June 30__.
Allbanks
53,85255, 289
37, 99838,505
41,87044, 770
45, 76648, 964
51, 33553, 701
53, 28752,440
52,19554,054
53,81255,988
I n millions of dollars]
Member banks
Total
32,28433,865
23,33823,771
26, 61528, 943
29, 49632,159
34,09835,893
35,44034,810
34,74536, 211
36,08938, 027
Na-tional
19,41120, 290
14, 77215, 386
17,09718, 519
19, 03120,886
21, 98623,107
22,92622, 655
22, 55323, 497
23,34024, 534
State
12,87313, 575
8,5668,385
9,51810,424
10, 46511, 273
12,11212, 786
12, 51412,155
12,19312, 714
12,74913, 493
Nonmen
Mutualsavingsbanks
8,9838,916
9,7139,708
9,7809,828
9,9209,963
10, 06010,143
10, 21310, 257
10, 29610, 365
10, 37610, 521
iber banks
Othernonmem-ber banks
12, 58412, 508
4,9465,026
5,4756,000
6,3506,842
7,1787,666
7,6357,373
7,1537,478
7,3487,440
For footnotes see table below.
LOANS AND INVESTMENTS[In millions of dollars]
Call date
1929—June 29Dec. 31
1933—June 30Dec. 30
1934—June 30Dec. 31 __
1935—June 29Dec. 31_
1936—June 30Dec. 31
1937—June 30Dec. 31
1938—June 30Dec. 312
1939—Mar. 29 2June 303
All banks
Total
58,47458,417
40,07640,319
42, 50243,458
44,41645, 717
48,45849, 524
49, 69648, 566
47, 38148,929
48, 92949,602
Loans
41,53141,918
22, 20321,977
21, 27820,473
20,27220, 329
20, 67921,449
22, 51422,198
21,13021, 354
21,15421,310
Invest-ments
16,94316,499
17,87218, 342
21,22422,984
24,14525, 388
27,77828,075
27,18226,368
26, 25227, 575
27, 77528,292
Member banks
Total
35,71135,934
24, 78625, 220
27,17528,150
28, 78529,985
32, 25933,000
32, 73931, 752
30, 72132,070
32,09532, 603
Loans
25,65826,150
12,85812,833
12, 52312,028
11,92812,175
12, 54213,360
14, 28513,958
12, 93813, 208
13,04713,141
Invest-ments
10,0529,784
11,92812, 386
14, 65216,122
16,85717,810
19,71719, 640
18, 45417, 794
17, 78318, 863
19,04819,462
Nonmember banks
Mutual savings banks
Total
9,5569,463
10,0449,985
9,9049,782
9,8529,804
9,96110,060
10,18010,187
10,19610, 255
10, 26510,342
Loans
6,8926,945
6,9415,906
5,6485,491
6,3415,210
6,1055,027
6,0024,996
4,9614,930
4,9264,931
Invest-ments
3,6643,518
4,1034,079
4,2564,291
4,5114,594
4,8565,034
5,1785,191
5,2355,325
5,3385,411
Other nonmember banks
Total
13,20713,020
6,2465,115
5,4235,526
5,7795,927
6,2386,464
6,7786,627
6,4656,604
6,5696,657
Loans
9,9819,823
3,4043,238
3,1082,955
3,0032,944
3,0323,062
3,2273,244
3,2313,217
3,1803,238
Invest-ments
3,2273,197
1,8411,877
2,3152,571
2,7772,983
3,2063,402
3,5503,383
3,2343,387
3,3893,419
1 Prior to Dec. 30,1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000on that date. The nonmember bank figures include interbank deposits to the extent that they are not shown separately in a few State bankabstracts.2 The December 1938 and March 1939 figures of loans and investments exclude approximately $50,000,000 and $100,000,000, heretofore reportedas loans and investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reportsamong "Other assets."
3 Nonmember bank figures are preliminary.Back figures—See Annual Report for 1937 (tables 48-49).
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
900 FEDERAL RESERVE BULLETIN OCTOBER 1939
CONDITION OF ALL MEMBER BANKS[In millions of dollars]
i Classifications indicated were revised as of Dec. 31,1938; for explanation see BULLETIN for January 1939, pp. 22-23, and the April BULLETIN,pp. 259-264.
* Not reported separately prior to December 1938 except for weekly reporting banks in leading cities.8 Figures in this column prior to Dec. 31,1938, represent all loans on securities, regardless of purpose, excepting only loans on securities to banks
and to brokers and dealers.i This is a residual item and because of the revised loan classifications figures beginning Dec. 31, 1938, are not comparable with earlier figures.1 Includes obligations of territorial and insular possessions when reported separately.1 Includes Treasury certificates of indebtedness.7 For estimated figures for Dec. 31, 1938, on basis comparable with earlier figures see p. 332 of the April BULLETIN.8 Central reserve city banks.Back figures— See Annual Report for 1937 (tables 52-58).
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1939 FEDERAL RESERVE BULLETIN 901
CONDITION OF ALL MEMBER BANKS—Continued[In millions of dollars]
i Prior to Dec. 31,1935, excludes balances with private banks to the extent that they were then reported in "Other assets." Since Oct. 25,1933,includes time balances with domestic banks which on that date amounted to $69,000,000 and which prior to that time were reported in "Other assets."
1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31,1935,less cash items reported on hand but not in process of collection.
* Includes "Due to Federal Reserve banks (transit account)," known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31, 1935.* U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.* Central reserve city banks.Back figures.—SQQ Annual Report for 1937 (tables 52-58).
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902 FEDERAL RESERVE BULLETIN OCTOBER 1939
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES[Monthly data are averages of Wednesday figures. In millions of dollars]
NOTE.—For description of figures see BULLETIN for November 1935 (pages 711-738) or reprint, which may be obtained from the Division ofResearch and Statistics, and BULLETIN for June 1937, (pages 530-531). For back figures see BULLETIN for November 1935 (pages 711-738) or reprint.BULLETIN for December 1935 (page 876), Annual Report for 1937 (tables 65-67) and corresponding tables in previous Annual Reports.
i Beginning February, 1939, amounts previously classified as loans or securities but indirectly representing bank premises or other real estateowned are classified among "Other assets". These amounts on February 8, 1939, were $47,000,000 for loans, mostly real estate loans, and $53,000,000for securities. There was also a transfer of certain loans theretofore erroneously classified as "Commercial, industrial, and agricultural" to "Otherloans."
» Not reported separately prior to Feb. 8. 1939.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 903
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued[Monthly data are averages of Wednesday figures. In millions of dollars.]
1 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collectionJ U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
904 FEDERAL RESERVE BULLETIN OCTOBER 1939
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued[In millions of dollarsl
CITY OF CHICAGO*August 23August 30September 6September 13September 20
Totalloansandin-
vest-ments
1,1691,1691,1751,1841,181
9,1759,2229,1889,2179,246
1,1641,1601,1561,1541,149
1,9181,9261,9231,9031,889
674682678683685
579584582582585
3,2273,2553,2483,2233,161
686676679
379383391397398
664664663653650
509512508513512
2,1982,1992,1912,2042,204
2,1362,1612,1602,1362,075
Loans
Total
588584590595598
3,1823,2133,2483,2183,221
421415414417414
678679
682
245245245249249
283284285287
852851872871870
308307313319320
160164172178180
274275281281280
251253257261261
936939944953956
541539557555553
Com-mer-cial,in-
dus-trial,andagri-cul-tural
275272276277282
1,6051,6541,6831,7291,759
191189189192191
251253256260259
104105107108109
150152152153154
478479494504508
178179184189189
162163169169169
164166170172171
301301307314317
352353364371375
Openmar-ket
paper
61626564
125128123123122
2626262625
Loans forpurchasingor carryingsecurities
Tobrok-ersanddeal-ers
2322232523
494472503434
Toothers
2322222222
242243235237236
3131313131
2626262525
1515151515
1111111111
7979787776
1413141414
Realestateloans
8181818181
205205205205205
5555555555
171172172172172
3837373838
3131313131
104105105105106
5151515151
Loansto
banks
78109
252525
26
21212122
383384383383384
1414141414
1
1
1
3
Otherloans
125125125124125
472466465465
196196
7273727373
8181818383
5253535453
4748474949
176176176177177
5050525151
Investments
Total
581585585589583
5,9936,0095,9405,9996,025
743745742737735
1,2401,2471,2391,2171,207
429437433434436
296300297295297
2,3752,4042,3762,3522,291
376379373357359
219219219219218
390389382372370
258259251252251
1,2621,2601,2471,2511,248
1,5951,6221,6031,5811,522
u.3. Government obligations
Direct
Total
396399401403405
3,4183,3893,3833,4363,454
365366365363363
838844841821811
313321317315317
141146143142143
1,5981,6271,6031,5771,516
206209205193193
147147148148147
195195192184178
158156150143140
758766764764761
1,1161,1421,1241,1011,042
Bills
1
3
208194189230264
202020148
999910
219244217196131
22222
23666
2926221613
4432
216241215193130
Notes
6163626361
869875868871850
3939383938
221221221221222
178189188189191
3134343535
430430430429433
4949495050
3333343433
8284848379
5050524549
9593949490
244245245244248
Bonds
334336339340341
2,3412,3202,3262,3352,340
326327327324325
597603600586581
135132129126126
1011031009898
949953956952952
155158154141141
114114114114114
1111081029593
7980768278
659669667668671
656656664664664
Guar-an-teed
5554525346
1,2271,2361,1851,1851,192
9898979494
112112111110110
5151515353
6463626162
288291290290290
6868676566
2828272727
6159555458
4548465355
177178176177177
149154155155156
Othersecur-ities
130132132133132
1,3481,3841,3721,3781,379
280281280280278
290291287286286
65656566
9191929292
489486483485485
10210210199100
4444444444
134135135134134
5555555656
327316307310310
330326324325324
* Separate figures for New York City are shown in the immediately preceding table, and for the city of Chicago in this table. The figures forthe New York and Chicago districts, as shown in this table, include New York City and Chicago, respectively.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1939 FEDERAL RESERVE BULLETIN 905
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued[In millions of dollars]
Federal Reservedistrict and date
(1939)
Re-serveswithFed-eralRe-
servebanks
Cashin
vault
Bal-anceswithdo-
mesticbanks
De-mand
de-posits
ad-justed1
Demand deposits,except interbank
Indi-vid-uals,part-ner-
ships,andcor-
pora-tions
Statesand
polit-icalsub-divi-
Certifledandoffi-cers'
checks,etc.
U. S.Gov-ern-
ment 2
Time deposits,except interbank
Indi-vid-uals,part-ner-
ships,andcor-
pora-tions
Statesand
polit-icalsub-divi-sions
Postalsav-ings5
Interbankdeposits
Domesticbanks
De-mand Time
For-eign
banks
Bor-row-ings
Cap-italac-
counts
BOSTON (6 cities)August 23August 30September 6September 13September 20
NEW YORK (8 cities)*August 23August 30September 6September 13September 20PHILADELPHIA (4 cities)August 23August 30September 6September 13September 20CLEVELAND (10 Cities)
August 23August 30September 6September 13September 20
CITY OF CHICAGO*August 23August 30September 6September 13September 20
426418418445457
5,4675,6385,7035,8405, 778
366360363376387
448447452460481
172168185184182
135136132133127
1,1741, 1571,1591,2521. 327
188183182197207
8991959692
180177188193192
120125132142131
351347359368362
945927929
1,0111,083
140141141144143
7889969995
1718181918
4243424543
2022212321
1313121313
6771697471
1112111212
149146151147154
180174174184192
184185185200211
282282289313321
185175181192196
197191196205207
505501507521534
166162170182177
124123119119118
312305313335344
256251258265271
298294270287296
222213219223235
1,1261,1161,1261,1471,149
8,5168,7608,7428,789
892890879899896
1,2341,2451,2451,2561,261
468465467476476
383386378385383
2,5052,5182,4992, 5592,562
463462457466469
286292292297294
519513514526528
452456452465454
991993989
1,0231,015
1,7281,7291,7241,7601,768
1,0821,0741,0971,1251,133
8,4258,6318,6918,8308,711
856859853887
1,1741,1851,1841,2311,223
448451463479473
357358360375370
2, 3152,3072,2972,4012,387
463461467485485
248252259267264
499490505526519
439434438459451
975977985
1,0371,017
1,6241,6101,6031,6681,666
405445399406343
81727063
119117121114112
5447424244
6464595857
314327323326315
3736363533
5859595656
7074716767
3844414038
7472697270
184196199203195
1615141917
294244356338241
3939393939
104104105104104
2020191919
1222
2222222222
3030303030
107107106106107
6060606060
245244241240237
961963964970966
274273273273273
711710710709709
197197197197197
180180180180180
911911911910911
188187187187187
119119119119119
140140141141141
127127127127127
478477477476477
284290296311319
3,1753,1793,2463,3783,428
338334343350370
354352359365372
260260276283284
252248256260261
1,0641, 0621,0781,1061,119
290286
141140145148146
394409416418
218218232241245
277277281293292
810
856
2519191925
593615640651
243244244245245
1,6051,6041,6021,5981,596
223223224223223
371372372370371
9696979797
9493939392
403404405404404
9494949494
5858585858
101101101101101
86868685
350349350346345
265267267266266
* See note on preceding page. .1 Demand deposits other than interbank and U. S. Government, less cash items reported as m process of collection.2 U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.
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906 FEDERAL RESERVE BULLETIN OCTOBER 1939
COMMERCIAL PAPER, ACCEPTANCES, AND BROKERS' BALANCES
COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING
End of month
1938—AugustSeptemberOctoberNovemberDecember
193g—JanuaryFebruaryMarchA prilMayJuneJulyAugust
Com-mer-cial
paperout-
stand-ing i
209212213206187
195195191192189181194201
[Irl millions of dollars]
Dollar acceptances outstanding
Totalout-
stand-ing
258261270273270
255248245238247245236235
By holders
Held
Total
216221223222212
204198191189192191188191
by acceptingbanks
Ownbills
129129130124121
122122117118124122119128
Billsbought
8792939891
8276747268696963
Held by FederalReserve banks
Forown ac-count
For ac-count offoreigncorre-
spond-ents
(2)
(2)
(2)
(»>
Heldby
others
4240465158
5250544955534844
By classes
Basedonim-
portsinto
U.S.
8389949495
8987878682817579
Basedon ex-portsfromU.S.
5857575960
5757585651454140
Dollarex-
change
22333
2221
19201918
Based on goodsstored in or shippedbetween points in
U. S.
5556595957
5248423836393940
Foreigncoun-tries
6057565756
5554565759606159
1 As reported by dealers; includes some finance company paper sold in open market.2 Less than $500,000.Back figures.—See Annual Report for 1937 (table 70).
CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OFSTOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS
[Member firms of New York Stock Exchange. Ledger balances in millions of dollars]
1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and (2)of firms' own partners.
2 Includes both money borrowed from banks and trust companies in New York City and elsewhere in the United States and also money bor-rowed from other lenders (not including member firms of national securities exchanges).
NOTE.—For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the methodsby which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last columnis not to be taken as representing the actual net capital of the reporting firms.
Back figures.—See BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69).
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 907
FEDERAL RESERVE BANK DISCOUNT RATES[Per cent per annum]
Federal Reserve Bank
BostonNew York . . . . .PhiladelphiaCleveland.,. .Richmond __ _ ..Atlanta _. _ChicagoSt LouisMinneapolis . _Kansas CitvDallasSan Francisco
Rediscounts and advances under sections13 and 13a of the Federal Reserve Act
except last paragraph of Section 13
Secured by direct andeligible guaranteed ob-ligations of the U .S .
1 VA per cent to lenders other than banks.NOTE.—Rates applicable to United States Government securities' repurchase agreements are as follows: New York, 1 per cent; Cleveland,
Kansas City, and Dallas, VA per cent.Back figures.—See Annual Report for 1937 (table 40).
FEDERAL RESERVE BANKBUYING RATES ON ACCEPTANCES
[Per cent per annum]
Maturity
1-15 days 1..16-30 days...31-45 days...46-60 days...61-90 days...91-120 days..121-180 days.
1 This rate also applies to acceptances bought under repurchase agree-ments, which agreements are always for a period of 15 days or less.
NOTE.—Minimum buying rates at the Federal Reserve Bank ofNew York on prime bankers' acceptances payable in dollars; higherrates may be charged for other classes of bills. The same minimumrates apply to purchases, if any, made by other Federal Reserve banks.
Back figures—See Annual Report for 1937 (table 41).
MAXIMUM RATES ON TIME DEPOSITSMaximum rates that may be paid by member banks as established by
the Board of Governors under provisions of Regulation Q.
[Per cent per annum]
Savings depositsPostal Savings depositsOther time deposits pay-
able in:6 months or more90 days to 6 monthsLess than 90 days
Nov. 1, 1933to
Jan. 31, 1935
Feb. 1, 1935to
Dec. 31, 1935
In effectbeginning
Jan. 1, 1936
NOTE.—Maximum rates that may be paid by insured nonmemberbanks as established by the Federal Deposit Insurance Corporation,effective February 1, 1936, are the same as those in effect for memberbanks. In some States the maximum rates established by the Boardand the Federal Deposit Insurance Corporation are superseded bylower maximum rates established by State authority.
FEDERAL RESERVE BANKRATES ON INDUSTRIAL ADVANCES
Rates in effect, Sept. 26, 1939, on advances and commitments underSec. 13b, of the Federal Reserve Act as amended June 19, 1934.
[Per cent per annum e,xcept as otherwise specified]
Federal Reserve Bank
BostonNew YorkPhiladelphiaCleveland
RichmondAtlantaChicago.St. Louis
MinneapolisKansas CityDallasSan Francisco.. _.
Advancesdirect toindustrial
or com-mercial or-ganizations
4-64-6
4^-6
65-65-6
64-65-65-6
Advances to financ-ing institutions—
On por-tion forwhich
institu-tion is
obligated
33
0) 234
4-65
334
434-544
3-4
On re-mainingportion
3344-5
4
4-65
5-64
434-54
5-64-5
Commit-ments
to makeadvances
34-11-2
1
1-2
,-11
34-2l
1 Authorized rate 1 per cent above prevailing discount rate.3 Same as to borrower but not less than 4 per cent.8 Flat charge.Back figures.—See Annual Report for 1937 (table 40).
MEMBER BANK RESERVE REQUIREMENTS[Per cent of deposits]
Classes of depositsand banks
On net demanddeposits:l
Central reserve city..Reserve cityCountry
On time deposits:All member banks. __
June 21,1917-
Aug. 15,1936
Aug. 16,1936-
Feb. 28,1937
341510H
434
Mar. 1,1937-
Apr. 30,1937
22173
May 1,1937-
Apr. 15,1938
Apr. 16,1938-andafter
12
1 See footnote to table on p. 896 for explanation of method of comput-ing net demand deposits.
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908 FEDERAL RESERVE BULLETIN OCTOBER 1939
MONEY RATES AND BOND YIELDS
OPEN-MARKET RATES IN NEW YORK CITY[Per cent per annum]
1 Series comprises 273-day bills to October 15, 1937, bills maturingabout March 16, 1938, from October 22, to December 10, 1937, and 91-daybills thereafter.
Back figures.—See Annual Report for 1937 (tables 43 and 44). Figuresfor 91-day Treasury bills available on request.
RATES CHARGED CUSTOMERS BY BANKS INPRINCIPAL CITIES
[Weighted averages of prevailing rates; per cent per annum]
New York City:JanuaryFebruary,MarchApril...MayJuneJuly . .AugustSeptemberOctoberNovemberDecember
1 Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures.2 Average of yields of all outstanding bonds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description.«Standard Statistics Co.* Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa group has been reduced
from 10 to 4, the industrial Aa group from 10 to 3, the industrial A group from 10 to 8, and the railroad Aaa group from 10 to 5.Back figures.—See Annual Report for 1937 (table 80); for U. S. Treasury bonds, see pp. 1045-1046 of BULLETIN for December 1938.
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1 Monthly data are averages of daily figures except for municipal bonds,which are averages of Wednesday figures.
2 Average prices of all outstanding bonds due or callable after 12 years,based on quotations from Treasury Department; see BULLETIN forDecember 1938, pp. 1045-1046 for description. Prices expressed indecimals. Figure for July 5, should be revised to 108.4.
3 Prices derived from average yields, as computed by Standard Sta-tistics Co.
Back figures.—See Annual Report for 1937 (table 79); for U. S. Treasurybonds, see pp. 1045-1046 of BULLETIN for December 1938.
STOCK MARKET
Year, month, ordate
Number of issues. .-
1936 average1937 average _ _1938 average
1938—AugustSeptember. _.OctoberNovember . . -D e c e m b e r . . .
1939—JanuaryFebruaryMarch .AprilM a yJune .JulyAugust
1 Standard Statistics Co. Monthly data are averages of Wednesdayfigures.
2 Average prices of industrial high-grade preferred stocks, adjusted to a$7 annual dividend basis.
3 Average daily volume of trading in stocks on the New York StockExchange, in thousands of shares. Weekly figures are averages for theweek ending Saturday.
Back figures.—For stock prices, see Annual Report for 1937 (table 79).
1 Includes issues of noncontiguous U.S. Territories and Possessions.2 Includes publicly-offered issues of Federal credit agencies, but excludes direct obligations of U. S. Treasury.3 Less than $500,000.
Source.—For domestic issues, Commercial and Financial Chronicle; or foreign issues, U. S. Department of Commerce. Monthly figures subjectto revision.
Back figures—See Annual Report for 1937 (table 78).
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910 FEDERAL RESERVE BULLETIN OCTOBER 1939
TREASURY FINANCEUNITED STATES GOVERNMENT DEBT
VOLUME AND7KIND OF DIRECT OBLIGATIONS[On basis of daily statements of United States Treasury. In millions of dollars]
1 Excludes .postal savings bonds, formerly sold to depositors in the Postal Savings System.2 Includes Liberty bonds.3 Includes adjusted service bonds of 1945 and special issues of adjusted service bonds and of notes to Government Life Insurance Fund series
and of certificates to the adjusted service fund.4 Includes special issues to old-age reserve account, unemployment trust fund, and railroad retirement account.6 Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation.• Includes certificates of indebtedness not shown separately: 1932—$2,726,000,000; 1933—$2,108,000,000; 1934—$1,517,000,000.
MATURITIES'OF PUBLICLY-OFFERED DIRECTOBLIGATIONS, AUGUST 31, 1939
fin millions of doliarsl
Da te matur ingor callable
1939—Before Oct. 1Oct. 1-Dec. 31
1940—Jan. 1-Mar. 31Apr. l - J u n e 3 0July 1-Sept 30Oct. 1-Dec. 31
1 Principal amount of obligations guaranteed as to interest and princi-pal. Excludes obligations held by U. S. Treasury and reflected in thepublic debt. The total includes guaranteed debentures of the FederalHousing Administrator, amounting to $2,615,000 on August 31, 1939.
2 Excludes obligations guaranteed as to interest only.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 911
SUMMARY OF TREASURY OPERATIONS
[On basis of daily statements of United States Treasury. In millions of dollars]
1 Excludes debt retirements.2 Includes taxes under Social Security Act and on carriers and their employees.3 Includes miscellaneous internal revenue, unjust enrichment tax, and processing taxes.4 Excludes expenditures for adjusted service which are included under "Transfers to trust accounts, etc."5 Includes revolving funds of Public Works Administration and Farm Credit Administration.6 Includes expenditures for retirement funds, adjusted service certificate fund, old-age reserve account and railroad retirement account; except
or the adjusted service certificate fund, these appear as receipts under "Trust accounts, etc."7 Details given in lower section of table. 8 Less than $500,000. 9 Excess of credits.
10 Includes other trust accounts, increment resulting from reduction in weight of the gold dollar, expenditures chargeable against incrementon gold (other than retirement of national bank notes) and receipts from seigniorage.
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912 FEDERAL RESERVE BULLETIN OCTOBER 1939
GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, JULY 31 , 1939[Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars]
ASSETS
Loans and preferred stock:Loans to financial insti tutions. _Preferred stock, etcLoans to railroadsHome and housing mortgage
CashU. S. Govt. direct obligationsObligations of Government credit
agencies:Fully guaranteed by U S.Other 6
Accounts and other receivablesBusiness propertyProperty held for sale . . . _.Other assets ___ _ _ _
Total assets other than inter-agency 6
LIABILITIES
Bonds, notes, and debentures:Guaranteed by United States . . .Other 6
Other liabilities (including reserves).
Total liabilities other thaninteragency6
Excess of assets over liabilities, ex-cluding interagency transactions. .
Privately owned interests
U. S. Government interests
Recon-structionFinanceCorpo-ration
andPublicWorksAdmin-istration
215527462
222 431
1, 6572
48
827
0)362
1,781
820
91
911
869
869
Home mortgage andhousing agencies
HomeOwners'
LoanCorpo-ration
217
2,068
2,28570
104
5485
2,921
2, 7690)
103
2, 873
48
48
Othermort-gageagen-cies
16244
183
0)
3894136
12
60)0)0)
485
13434
167
31749
268
UnitedStatesHous-
ingAu-
thority
81
81512
1130
264
114
8
122
142
142
Farm credit agencies
Farmmort-gageagen-cies
2,647
2,64711174
5 2201
6122
7
3,171
1,3791,000
93
2,472
699198
500
OtherFarmCreditAdm.banks
and cor-porations
76
294
36931
170
21374
0)0)0)
633
19811
209
4243
421
Com-modityCreditCorpo-ration
565
5651
180)
(x)
584
206
78
284
300
300
Other
( i )
204s 323
52727
0)
5
559
182
182
377
377
Ten-nes-see
Val-leyAu-
thor-ity
7
4241
(0
252
85
14
239
239
In-sur-anceagen-cies
58
5$30
397
106
63124
661
2(0204
207
454139
315
Other
0)30
4 0 )
283144
44100
166
512
957
66
446
446
Total
July31,
1939
435864493
2 3322,6471,0841,007
8 861385731
14047
37848370990
11, 823
5,2911,349
867
7,507
4,316390
3,926
June30,
1939
446865493
2 3312,658
780892
8 465585713
14048
377481708189
11, 706
5,4711,389
791
7,651
4,056387
3,668
July31,
1938
489868475
2 34G2,795
671807
8 452380674
16037
415432670147
11,365
5,0641,378
786
7,229
4, 136372
3,764
i Less than $500,000.» Includes $59,000,000 loans of Public Works Administration.»Includes $256,000,000 loans of Farm Security Administration.4 Includes $133,000,000 loans of Rural Electrification Administration.* Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation.6 Includes, however, investments in securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction
Finance Corporation.N O T E . — F o r explanation of table, see BULLETIN for October 1938, p . 882.
RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS[Amounts outstanding. In thousands of dollars]
Loans to financial institutionsLoans on preferred stock of banks and insurance companies..Preferred stock, capital notes, and debenturesLoans to railroads (including receivers)Loans for self-liquidating projects _Loans to industrial and commercial businessesLoans to drainage, levee, and irrigation districtsOther loansSecurities purchased from Public Works Administration
Total loans and investments, other than interagency..
Loans to Federal land banksPreferred stock of Export-Import bankLoans to Rural Electrification AdministrationCapital stock of, and loans to R. F . C. Mortgage CoCapital stock of, and loans to Fed. Natl . Mtge. AssnLoans to Tennessee Valley Authority
i Some of the loans made by the regional agricultural credit corporations (prior to October 1935) and by the banks for cooperatives and most ofthe loans made by the production credit associations are discounted with the Federal intermediate credit banks. The amounts in this column arethus included in the three columns under those headings. Such loans are not always discounted in the same month in which the original credit
i s extended.
FEDERAL HOME LOAN BANK BOARDLOANS OUTSTANDING, BY INSTITUTIONS
p Preliminary. r Revised. * Average per working day.i For indexes of groups and separate industries see pp. 915-916; for description see BULLETIN for February and March 1927.» 3-month moving average of F. W. Dodge Corporation data, centered at second month; for description see p. 358 of BULLETIN for July 1931.3 Figures revised 1935 to date. The indexes for factory employment and payrolls unadjusted for seasonal variation are compiled by the Bureau
of Labor Statistics. For description of the seasonally adjusted index of factory employment compiled by F. R. Board of Governors see pp. 835-837of BULLETIN for October 1938 and pp. 878-887 of this BULLETIN. For current indexes of groups and separate industries see pp. 917-920. Under-lying figures are for payroll period ending nearest middle of month.
* For indexes of groups see p. 922.Back figures—See Annual Report for 1937 (table 81). For department store sales see BULLETIN for October 1938, p. 918; for factory employ-
ment and payrolls see BULLETIN for October 1938, pp. 838-866.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1939 FEDERAL RESERVE BULLETIN 915
INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES)[Index numbers of the Board of Governors; adjusted for seasonal variation. 1923-25 average—100]
Industry
Manufactures—TotalDurableNondurable
IRON AND STEELPig ironSteel ingots
TRANSPORTATION EQUIPMENT:AutomobilesLocomotives
NONFERROUS M E T A L S : *Tin deliveries *ZincLead
CEMENT AND GLASS:CementGlass, plate
C O K E :ByproductBeehive
TEXTILESCotton consumptionWool
ConsumptionMachinery activity 1
Carpet and rug loom activitySilk deliveries
L E A T H E R AND PRODUCTSTanning
Cattle hide leathersCalf and kip leathersGoat and kid leathers
1 Without seasonal adjustment. v Preliminary. »• Revised.
NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, Sep-tember 1933, pp. 584-587, November 1936, p. 911, March 1937, p. 255, October 1938, p. 911, and January 1939, pp. 20-21. Series on silk-loom activityand on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber,usually published in this table, are in process of revision.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
916 FEDERAL RESERVE BULLETIN OCTOBER 1939
INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES)[Index numbers of the Board of Governors; without seasonal adjustment.
p Preliminary. r Revised.NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, Sep-
tember 1933, pp. 584-587, March 1937, p. 256, October 1938, p. 912, and January 1939, pp. 20-21. Series on silk-loom activity and on production ofbook paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, usually published inthis table, are in process of revision.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1939 FEDERAL RESERVE BULLETIN 917
FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION)[Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1937. 1923-25 average=100]
R U B B E R PRODUCTSRubber boots, shoesRubber tires, inner tubesRubber goods, other
July Aug. Sept. Oct. Nov. Dec.
94.395
126.8145261
97160827875969892
63.26363
108.1103102
110.0122107.010811811484
103115261
4260
111
95.595
127.14426699
16482
979595
64.36364
108.'104103
112. 5122110.1112112112
85107118280
82
73.25260
119
97.29781
126.7144263
9615383767598
11699
65.765
109.0105104
112.9121110. 911310010987
103118299
81
75.!5461
125
96.59683
123.4143263
9612982767799
10896
64.45965
109.210510598
113
112.6120110.811599
1088699
118300
80
76.55663
123
97.69685
127.4144276
95149837878
10010895
65.06365
110.610810699
114
113.3120111.811910110884
102118297
77
81.46066
133
98.19786
128.8144274
96151867978
10015294
65.663
111.1110106100114
113.7119112.412010410885
100119297
81
82.96067
137
1939
Jan. Feb. Mar. Apr. M a y June July Aug.
128.!144276
9615084797998
21296
65.96167
111.0111106100113
113.6119112.311997
10986
10311929781
81.45867
133
99.0
125.144275
9414383777896
12093
64.86165
111.111110699
114
112.119111.412088
1078697
118301
80
81.460
86
127.3144270
9415882787896
10796
61.46262
111.4112106100114
113.4119112.212096
1088698
120299
79
82.26067
134
97.79785
127.0144270
9515781777896
103102
64.56365
111.5111106100114
114.2118113.311810310986
110121309
78
81.36067
131
93. 7!92 !84 ;
128.4146272 !
96 I15981 !8077 !9 8 I
10787 •
65. 116265 :
111. oi11110799 '
115
97. 19686
129. 4j147275
951628081
10010489
65.56266
111. 111110699
114
114.4119113.4'117 '110111 i
87 I115 !119 I302 !
79 I
8 1 . li61 !67 i
129 !
113. 1120111.411788
11290
107120295
SO
80.85966
131
98.'
127.914726995
150828175
1019994
65.76166
111.;113106101114
113.6121111.811585
11192
105122298
84
79.74767
134
97.39687
129.3146269
96157867875
102105
65.36266
111.4113107
114.9122113.111980
11093
102125299
83. S58
138
'8-887 ofNOTE.—Figures revised 1935 to date. For description and back data see pages 835-866 of the Bui LETIN for October 1938 and pages 8this B U L L E T I N . Underlying figures are for payroll period ending nearest middle of month . Figures for August 1939 are preliminary.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1939 FEDERAL RESERVE BULLETIN 919
FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUTSEASONAL ADJUSTMENT)
RUBBER PRODUCTSRubber boots, shoesRubber tires, inner tubesRubber goods, other
Factory employment
1938
July
95.29675
134.2146292107210717993965795
62.86163
106.410110297110
106.2123102.111068108847211525978
68.64160108
Aug.
98,810079
145.5145292106295757991968097
65.76266
107.610310398111
109.3123106.011279110867711528281
72.35260115
1939
Apr.
100.210086
117.614326592108767674 -9346102
63.16263
111.110910699115
116.6117116.4117851098417712330279
82.15967134
May
92.59183
120.514627798108747885975288
64.26165
111.210910799115
112.9118111.7117751088612412329678
81.25967131
June
94.19385
127.2147298103141727992995491
65.26166
109.810810697114
109.8121107.211754108907912428680
80.15666129
July
99.79986
135.01483011041977083931015798
65.45966
110.111010699112
110.4122107.611749106917312229782
78.74567131
Aug.
100.610085
146.31472961032837880891018899
66.86167
110.311210798111
112.1123109.611956107937312330187
82.85968133
Factory payrolls
1938
July
74.57470
126.9136347901716476761055784
59.16858
97.11049780100
110.5135102.911757111946311322891
62.4355893
Aug.
82.88376
129.9133346892217076761027383
61.16660
99.210910281100
116.0138109.212363117986611326595
67.74959106
1939
Apr.
79.87781
112.11293037788687062974988
55.06454
104.511610585108
119.5129116.7130671199413612627995
81.05772124
May
68.66479
118.813732482937072711055673
57.76557
105.111610686108
119.6132115.7131581189610613027394
80.05572122
June
74.67082
123.8138355871106974751075977
61.56560
103.511810584106
118.7134113.9132451191016512927297
82.15575122
July
83.68282
128.5139359891546480771095381
61.86761
102.011710186102
117.8132113.6131421181036312428399
81.34377121
Aug.
84.98383
136.2135350872647776741068681
62.76862
103. 112210783102
121.6136117.31374811910961126288103
85. c5978126
NOTE.—Figures revised 1935 to date,period ending nearest middle of month.
Back data may be obtained from the Bureau of Labor Statistics.Figures for August 1939 are preliminary.
Underlying figures are for payroll
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1939 FEDERAL RESERVE BULLETIN 921
CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION[Figures for 37 States east of the Eocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.]
' Not strictly comparable with data for earlier years due to changes in classification.
CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF FINANCING[Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.]
Month
JanuaryFebruaryMarch _ _April _M a yJune .JulyAugust.- _SeptemberOctoberNovemberDecember __
Year
Total
1934
18697
17813113412712012011013511293
1,543
1935
10075
123124127148159169167201188264
1,845
1936
215140199235216233295275234226208200
2,675
1937
243188231270244318322281207202198209
2,913
1938
192119227222283251240313301358302389
3,197
1939
252220301330308288300
1934
15765
126787273526969797461
975
Publicly-financed l
1935
553868534764679297
114118196
1,007
1936
1497996
10594
1161531531161018982
1,334
1937
11269667493
137131104807893
115
1,152
1938
118519599
144
171160203179279
1,705
1939
148111128160135128137
Privately-financed l
1934
293152536354675141573832
568
1935
453755718084937670877068
837
1936
6662
103130122116141122119125119117
1,341
1937
13011916519515118019117812712410694
1,761
1938
7568
132123139143142142141154123110
1,492
1939
104109173170174161163
i Back figures —See BULLETIN for February 1938, p . 159. Da ta for years prior to 1932 not available.N O T E . — D u e to change in publication policy of the F . W. Dodge Corporation, data for August 1939 will be published in the BULLETIN for
November 1939.
CONSTRUCTION CONTRACTS AWARDED, BYDISTRICTS
[Figures for 37 States east of the Rocky Mountains, as reported by theF. W. Dodge Corporation. Value of contracts in thousands of dollars.]
COMMERCIAL FAILURES, BY DISTRICTS[Figures reported by Dun & Bradstreet. Amounts in thousands of
dollars.]
Federal Reservedistrict
BostonNew YorkPhiladelphia- ___ClevelandRichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallas—San Francisco
Total
Number
1939
Aug.
6725044463557
1482920432397
859
July
7125972703548
1533913412492
917
1938
Aug.
8527776817276
137309
3019
123
1,015
Liabilities
1939
Aug.
5103,395
451725246746
2,268307281403340
1,587
11, 259
July
1,1344,2671,439
905486608
2,67046389
419223
1,447
14,150
1938
Aug.
1,8066,3221,5131,000
727780
1,995169178285197
1,410
16, 382
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
922 FEDERAL RESERVE BULLETIN OCTOBER 1939
MERCHANDISE EXPORTS AND IMPORTS[In millions of dollars]
Month
JanuaryFebruaryMarch
AprilMayJune
JulyAugust...
OctoberNovember
Year
Merchandise exports 1
1935
176163185
164165170
173172199
221270223
2,283
1936
199182195
193201186
180179221
265226230
2,456
1937
223233257
269290265
268277297
333315323
3,349
1938
289262275
274257233
228231246
278252269
3,094
1939
213219268
231249236
230P251
Merchandise imports 2
1935
167152177
171171157
177169162
189169187
2,047
1936
187193199
203192191
195193216
213196245
2,423
1937
240278307
287285286
265246233
224223209
3,084
1938
171163173
160148146
141166168
178176171
1,960
1939
178158190
186203179
169J>176
Excess of exports
1935
9118
-6-513
-3337
3210037
235
1936
11-11—4
—109
—5
—15-14
5
5230
— 15
33
1937
-18-45—51
-185
-21
33163
10892115
265
1938
11899102
11510987
876579
1007698
1,134
1939
356177
454757
61
P Preliminary.1 Including both domestic and foreign merchandise.1 General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses.Source— Bureau of Foreign and Domestic Commerce.Back figures.—See BULLETIN for January 1931, p. 18, for July 1933, p. 431, and for February 1937, p. 152.
FREIGHT-CAR LOADINGS, BY CLASSES[Index numbers; 1923-25 average=100]
DEPARTMENT STORES—SALES, STOCKS[Index numbers based on value figures; 1923-25 average=100]
TotalCoalCokeGrain and grain products. —LivestockForest productsOreMiscellaneousMerchandise 1
TotalCoalCokeGrain and grain products. _.LivestockForest productsOreMiscellaneousMerchandise ]
1938 1939
Aug. Apr. May June July Aug.
Adjusted for seasonal variation
626346843740346760
604356764038757061
625142814040587061
676851903640647161
697662803943597262
Without seasonal adjustment
6356381013741636861
583647683739317262
624440733641817361
6758478930421087461
70645211134431127461
7169579037441257562
1 In less-than-carload lots.NOTE.—For description and back data see pp. 522-529 of BULLETIN
for June 1937. Based on daily average loadings. Basic data compiledby Association of American Railroads. Total index compiled by com-bining indexes for classes with weights derived from revenue data ofthe Interstate Commerce Commission.
Month
January. __February.March
April.May..June..
JulyAugustSeptember..
OctoberNovember..December..
Year..
Sales 1
Adjustedfor seasonal
variation
1938
90
84
1939
87
85
Withoutseasonal
adjustment
1938
9299
156
85
82
Stocks (end of month)
Adjustedfor seasonal
variation
1939
Withoutseasonal
adjustment
62
68
1939
606569
6864
1 Based on daily average sales—with allowance for changes frommonth to month in number of Saturdays and in number of Sundays andholidays. Adjustment for seasonal variation makes allowance in Marchand April for the effects upon sales of changes in the date of Easter.
Back figures.—Department store sales, see BULLETINS for August1936, p. 631, and October 1938, p. 918; department store stocks, see BUL-LETIN for March 1938, p. 232.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1939 FEDERAL RESERVE BULLETIN 923
WHOLESALE PRICES, BY GROUPS OF COMMODITIES[Index numbers of the Bureau of Labor Statistics. 1926=100]
FARM PRODUCTS:GrainsLivestock and poultryOther farm products
FOODS:Dairy productsCereal productsFruits and vegetablesMeatsOther foods
H I D E S AND LEATHER PRODUCTS:ShoesHides and skinsLeatherOther leather products
T E X T I L E PRODUCTS:Clothing. . . .Cotton goodsHosiery and underwearSilk and rayonWoolen and worsted goodsOther textile products
F U E L AND LIGHTING MATERIALS:AnthraciteBituminous coalCokeElectricityGasPetroleum products
1938
Aug.
53.480.662.6
77.057.386.066.5
100.875.682.197.0
81.764.459.829.276.365.2
77.998.1
104.281.688.156.7
1939
May June July Aug
59.673.258.7
58.673. 863.878.661.4
101.372.183. 195.6
81.763.360.240.775.465.3
75.399.0
104.2
16.0
58.269.458.8
60.075.962.575.760.8
101.375.383.895.6
81.764.160.139.175.664.2
75.595.6
104.2
60.7
64.671.962.075.360.4
100.876.984. 195.6
81.265.160.240.275.464. 1
72.695.8
104.2
52.2
51.566.060.1
67.971.958.573.760.3
100.877.284.097.1
81.565.561.539.575.563.7
72. 196.0
104.2
Subgroups
M E T A L S AND M E T A L PRODUCTSAgricultural implements
Farm machineryIron and steelMotor vehicles iNonferrous metalsPlumbing and heating
BUILDING MATERIALS:Brick and tileCementLumberPaint and paint materialsPlumbing and heatingStructural steelOther building materials
CHEMICALS AND D R U G S :ChemicalsDrugs and PharmaceuticalsFertilizer materialsMixed fertilizers
HOUSEFURNISHING GOODS:FurnishingsFurni ture
MISCELLANEOUS:Auto tires and tubesCattle feedPaper and pulpRubber, crudeOther miscellaneous
1938
Aug.
95.597.097.396.1
90.62 91.090.280.579.2
107.391.3
81.474.867.374.2
90.582.2
57.467.082.433.5
1939
May June July Aug.
93.494.695.793.073.179.3
91.791.591.281.679.3
107.389.6
79.471.969.771.8
89.881.0
60.587.480.434.281.4
93.494.695.293.072.979.3
91.191.590.782.479. 3
107.389.5
79.271.969.571.7
90.081.0
60.581.579.934.481.3
93.494.795.193.073.379.3
90.691.591.882.279.3
107.389.6
78.271.867.5
90.081.0
60.572.479.934.781.3
93.594.795.192.574.679.3
90.591.391.882.179.3
107.389.5
77.571.767.272.9
90.081.1
60.568.480.034.981.3
i Preliminary revision.* Revised series.Back figures.—For monthly and annual indexes of groups, see Annual Report for 1937 (table 86); for indexes of subgroups, see Annual Report
for 1937 (table 87).
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
924 FEDERAL RESERVE BULLETIN OCTOBER 1939
SEPTEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS[Based on estimates of the Department of Agriculture, by States, as of September 1, 1939]
[In thousands of units]
Federal Reserve district
BostonNew YorkPhiladelphiaClevelandRichmondAtlantaChicagoSt. LouisMinneapolisTCansas CityDallasSan Francisco _
Total
Federal Reserve district
BostonNew YorkPhiladelphiaCleveland. _RichmondAtlantaChicagoSt. LouisMinneapolisKansas CityDallas _ .San Francisco
p Preliminary. r Revised. • Estimated,i Less than $5,000,000.* Averages of daily figures, see footnote3.»Figures are shown under the Wednesday date included in the weekly period.< Index numbers, 1926=100.* Adjusted for seasonal variation.
MONTHLY FIGURESBUSINESS CONDITIONS
Wholesale commodity prices:United States:
All commodities 31, 32Farm products »_ 31Foods 31Other commodities.-. 31
Central gold reserves:United StatesEnglandFranceNetherlands
U. S. Gov't interest-bearingdebt—total
BondsNotesBillsSpecial issues
Customers' rates:New York City8 other Northern and
Eastern cities27 Southern and Western
cities
QUARTERLY FIGURES
Domestic corporation securityissues, total
NewRefunding __
2020202020
23
23
23
Index numbers1923-25=100
75.62.67.80.79.98.79.98
97385993.86.678667
6462235
45
75.462.667.580.279.297.679.6101
1004159
93.584.4698667
75.061.067.280.1
P102
P104
P96.4P89. 9
70
In millions of dollart
258108150
23617957
5,4685,713
3,6952, 018
55216034151
275115160
23016961
5,4685,494
3, 5591,935
57021332136
P118P 1 8 2
P251P176
64329330842
In billions of dollars
16.111.072.57.80
39.8927.177.241.314. 17
16.241.162.57.77
40. 1127.257.241.314.32
16.651.16
P2.71.77
40.3527.317.241.314.49
Per cent per annum
Oct.-Dec.
Jan.-Mar.1939
Apr.-June1939
In millions of dollars
799167632
27682193
661129532
8 Points in total index of manufacturing production.7 Three-months moving average adjusted for seasonal variation,s Series is discontinued. New series on somewhat differentbasis to be substituted.
9 Revised series. See pp. 919-920 of this BULLETIN.
NOTE.—Copies of this chart book can be obtained at a price of 50 cents. Banking statistics for call report dates are published from time totime. The latest figures appear on page 816 of the September 1939 BULLETIN.
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INTERNATIONAL FINANCIAL STATISTICS
927
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928 FEDERAL RESERVE BULLETIN OCTOBER 1939
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS[In millions of dollars]
* Prel iminary.1 Da t a reported month ly incomplete. For additional data see section at end of table.1 Figure for M a y 1939 officially reported and carried forward.« Figure for Mar . 1937 officially reported as of 20th of month and carried forward through
Nov. 1937. Figures for Dec. 1937 through Mar . 1938 officially reported and carried forwardthrough Nov. 1938. Figure for Dec. 1938 officially reported and carried forward.
* Figure for Aug. 1, 1936, carried, forward through Mar . 1938; Apr. 1938 figure officially re-ported and carried forward.
6 These 16 countries are: Albania, Algeria, Australia, Austria through Mar . 7, 1938, BelgianCongo, Bolivia, Danzig, Ecuador, El Salvador, Estonia, Guatemala, Finland, Latvia, Lithuania,Morocco, and Siam.
N O T E . — F o r back figures and description of table see BULLETIN for June 1933, pp . 368-372,and Ju ly 1936, pp . 544-547; also see footnotes to table in BULLETIN for Aug. 1936, p . 667, and Dec.1937, p . 1262.
c Corrected1 Reported at infrequent intervals or on de-
layed basis: U. S.—Exchange Stabilization F u n d(Special A / c No. 1); U. K.—Exchange Equaliza-tion Account; France—Exchange StabilizationF u n d and F u n d for Support of Rentes; Bel-gium—Treasury. Gold in stabilization funds ofSwitzerland and Netherlands and certain othergold of central banks and governments not re-ported.
8 First date reported.« $1,648,000,000 transferred Jan. 6, 1939, from
Bank of England to Exchange Account; $26,-000,000 transferred back on Mar . 1, and $94,000,-000 on July 12, 1939.
4 $140,000,000 transferred from Fund to Bankof France on April 20, 1939.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 929
GOLD PRODUCTIONOutside U. S. S. R.[In thousands of dollars]
Year or month
Estimatedworld
produc-tion
outsideU.S.S.R.
Production reported monthly
TotalAfrica
SouthAfrica
Rho-desia
WestAfrica
BelgianCongo
North and South America
UnitedStatesi Canada Mexico Colom-
bia Chile
Far East
Austra-lia
BritishIndia
1933.. 469,257 | 411,208$1=25-8/10 grains of gold 9/10 fine; i. <?., an
227,673 | 13,335 | 6,623 | 3,631 | 52,842$1=15-5/21 grains of gold 9/10 fine; i. e.
ounce of fine gold=$2O.67| 60,968 | 13,169 | 6,165 |,, an ounce of fine gold=$85
Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changesirregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annualproduction, in millions of dollars, as follows—at $20.67 per fine ounce: 1929, $15; 1930, $31; 1931, $34; 1932, $40; 1933, $56; at $35 per fine ounce: 1933, $951934, $135; 1935, $158; 1936, $185; 1937, $180; 1938 (preliminary), $184.
p Preliminary. r Revised.i Includes production in the Philippines.NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETINS for March 1939, p. 227, February 1939, p. 151,
June 1938, pp. 539-540, and April 1933, pp. 233-35. For annual figures of world production back to 1873 (including Russia-U.S.S.R.), see AnnualReport of Director of Mint for 1936, pp. 108-109, 1937, pp. 104-105 and 1938, pp. 102-103. Figures for Canada beginning January 1939 are subject toofficial revision.
GOLD MOVEMENTS[In thousands of dollars at approximately $35 a fine ounce]
1 Differs from official customhouse figures in which imports and exports for January 1934 are valued at approximately $20.67 a fine ounce.J Figures for November and December 1938 include imports from Argentina of $14,112,000 and $17,710,000, respectively.8 Includes $4,503,000 from Argentina.NOTE.—For gross import and export figures and for additional countries see table on p. 898.
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930 FEDERAL RESERVE BULLETIN OCTOBER 1939
GOLD MOVEMENTS—Continued[In thousands of dollars at approximately $35 a fine ounce]
* Preliminary.' Beginning April 1938 figures refer to Greater Germany.
2 Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000.8 Includes $67,655,000 exported to Central and South America.4 Figures for April and May include exports to Canada of $45,972,000 and $144,910,000 respectively.& Includes net exports to Canada of $115,406,000.6 Through March 1935 gold held by government; subsequently, gold held by Reserve Bank of India to which government gold was transferred.7 Figures derived from preceding columns; gold movement plus production minus increases in Indian reserves and gold earmarked for foreign
account in India.s Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria.9 Includes net import of $26,555,000 from Czecho-Slovakia.NOTE.—Switzerland.—In some cases annual aggregates of official monthly figures differ somewhat from revised official totals published for year
as a whole.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 931
INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATESNET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935
[In millions of dollars. Minus sign indicates net movement from United States]
From Jan. 2. 1935, through—
1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28
1939—Mar. 29Apr. 26 ..Mav31 . .
June 7 .._June 14June 21 ..June 2K
TABLE
Total
1,412. 52, 608. 43,410. 33, 779. 2
4, 134. 74, 479. 64, 570. 8
4, 550. 04, 555. 94, 586. 24, 595. 6
1.—TOTAL CAPITAL MOVEMENT
Increase in foreign bankingfunds in U. S.
Total
603.3930.5
1,168. 51, 432. 7
1, 693. 01, 934. 42, 041. 5
2, 008. 22, 019. 82, 031. 72, 048. 3
Centralbankfunds
in N. Y.
9.881.1
243.9216.3
256.8240.9302.1
327.8364.4364. 5361.8
Other
593.5849.4924.6
1, 216. 5
1, 436. 21, 693. 51, 739. 5
1, 680. 41, 655. 51, 667. 31, 686. 5
Decreasein U. S.banking
fundsabroad
361.4431.5449.1478.1
550. 5611.8599.8
601.3593.7610.7609.5
Foreignsecurities:
Returnof U. S.funds
125.2316.2583.2610.0
646.7657.5647.6
658.4661.5664.3664.5
Domesticsecurities:Inflow offoreignfunds
316.7917.4
1,162.01, 210.9
1,180. 61, 202. 91, 209. 2
1, 210. 61, 208. 31, 205. 61,199. 3
Inflow inbrokeragebalances
6.012.947.547.6
63.973.072.7
71.672.673.874.0
From Jan. 2, 1935,through—
1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28
1939—Mar. 29Apr. 26May 31
June 8June 14June 21 . .June 28
Total
1,412.52, 608. 43,410.33, 779. 2
4.134. 74,479. 64. 570. 8
4 550.04. 555. 94. 586. 24. 595. 6
TABLE 2
UnitedKing-dom
554.9829.3993.7
1,186.1
1, 203.11,303. 31, 337. 6
1, 345. 71, 354. 71, 355. 41, 360. 2
France
210.2299.5281.7339.5
366.8421.6431.1
424. 7429.5439.1439.7
.—TOTAL CAPITAL MOVEMENT
Neth-er-
lands
114.5229.7311.9324.6
383.6405.4391.1
391.1400.8397.6401.0
Switz-er-
land
130.4335.5607.5554.0
587.6595.6595.3
595.4596.4606.5599.2
Ger-many
36.683.1
123.9140.7
150.2146.9148.7
148.3148.0148.8149.5
Italy
24.045.622.133.0
24.726.029.1
28.328.828.629.5
, BY COUNTRIES
OtherEurope
130.0228.5312.2463.8
536.8595.9606.5
598.3592.3596.2604.2
TotalEurope
1, 200.62,051. 32, 653. 03,041. 7
3, 252. 93,494. 73, 539. 4
3, 531. 83, 550. 53, 572. 23, 583. 3
Canada
0)150.5106.3157.2
185.1216.8241.0
234.7234.6239.8230.5
LatinAmerica
70.9201.2410.6389.5
443.5480.6507.4
499.8495.2495.5500.2
FarEast
128.3184.0224.6156.8
206.4231.4226.4
228.1217.0220.5223.8
Allother
12.721.415.934.1
46.856.256.6
55.658.758.357.9
From Jan. 2, 1935,through—
1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28
1939—Mar. 29Apr. 26May 31
June 7 __June 14June 21June 28
TABLE 3.—FOREIGN BANKING FUNDS IN
Total
603.3930.5
1,168. 51, 432. 7
1. 693. 01, 934. 42. 041. 5
2. 008. 22. 019. 82. 031. 72. 048. 3
UnitedKing-dom
128.6163.5189.3366.7
401.8476.7505.8
518.0533.0527.6535.2
France
129.6144.2111.8158.8
187.4236.8243.2
234.5240.5247.6252.3
Neth-er-
lands
55.765.976.384.4
129.9141.0123.2
122.8131.7127.0132. 0
Switz-er-
land
72.4109.8288.4203.7
233.4230.6224.7
223.9223. 6233.7227. 1
Ger-many
- . 82.79.6
- 9 . 8
-10.9-15.7-14.0
-14.9-14.6-15.0-14.5
UNITED STATES, BY COUNTRIES
Italy
7.323.06.93.8
- 3 . 9- 5 . 7- 4 . 4
- 6 . 2- 6 . 3- 6 . 2- 6 . 6
OtherEurope
60.779.7
109.4203.0
267.8318.4323.6
315.4309.7312.7320.0
TotalEurope
453.5588.9791.7
1,010. 6
1, 205. 51, 382. 11, 402. 1
1, 393. 51,417.61, 427. 51,445.5
Canada
46.086.876.3
135.1
136.5166.9209.3
193.2192.9194.9191.5
LatinAmerica
33.5149.3166.3134.0
179.8209.6250.7
245. 8240.5238.5242.0
FarEast
58.890.4
126.2132.7
139.9140.4142.8
140. 1131.2132.8131.5
Allother
11.515.28.0
20.4
31.335.336.6
35.637.638.037.8
TABLE 4.—UNITED STATES BANKING FUNDS ABROAD, BY COUNTRIES
From Jan. 2, 1935,through—
1935—Dec. 311936—Dec. 301937-Dec. 291938—Dec. 28
1939—Mar. 29Apr. 26May 31
June 7June 14June 21June 28
Total
361.4431.5449.1478.1
550. 5611.8599.8
601.3593. 7610.7609. 5
UnitedKing-dom
208.8178.0207.4204.5
209.2227.9236.8
233.0230.1237.6236.7
France
48.162.065.365.5
64.967.168.1
71.069.871.168.1
Neth-er-
lands
- . 4- 3 . 3- 4 . 4- 6 . 9
- 1 . 5.7
- . 1
—. 7- . 4
.5- 1 . 0
Switz-er-
land
1.62.72.62.6
4.54.54.7
4.74.64.53.6
Ger-many
29.766.0
105.1140.3
149.8151.7152.0
152.7152.0153.3153.8
Italy
13.716.36.5
13.9
10.813.715.3
16.216.716.517.7
OtherEurope
8.822.026.933.0
30.935.138.7
38.338.238.839.9
TotalEurope
310.2343.7409.3453.0
468.6500.8515.4
515.2510.9522. 1518.8
Canada
- 4 . 636.9
-21.730.6
49.948.346.9
46.544. 146.542.2
LatinAmerica
20.124.951.666.8
66.571.154.8
51.952.554.755.7
FarEast
37.330.418.7
-65.0
-28.1- 6 . 0
-13.0
- 8 . 0-10.5- 8 . 6- 2 . 9
Allother
- 1 . 6- 4 . 4- 8 . 7- 7 . 2
- 6 . 4- 2 . 4- 4 . 3
- 4 . 3- 3 . 3- 4 . 0- 4 . 3
i,Inflow less than $50,000.NOTE.—Statistics reported by banks, bankers, brokers, and dealers.
1939, pp. 284-296, April 1938, pp. 267-277, and May 1937, pp. 394-431.For back figures and description of the statistics, see BULLETIN for April
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932 FEDERAL RESERVE BULLETIN OCTOBER 1939
INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—ContinuedNET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued
[In millions of dollars. Minus sign indicates net movement from United States]
T A B L E 5 . — F O R E I G N S E C U R I T I E S , BY C O U N T R I E S
Net Purchases by Foreigners
From Jan. 2, 1935,through—
1935—Dec. 311936—Dec. 301937—Dec 291938—Dec. 28
1939—Mar. 29Apr. 26May 31
June 7June 14.._ __June 21June 28
Total
125.2316.2583.2610.0
646.7657.5647.6
658.4661.5664.3664. 5.
UnitedKing-dom
67.8116.1136.8129.1
127.6128.7128.1
127.8128.2128.6128.2
France
6.818.222.826.2
26.327.527.9
27.928.028.328.2
Neth-er-
lands
7.410.421.227.3
28.729.329.6
29.629.329.429.4
Switz-er-
land
- 1 . 213.730.437.1
38.440.141.3
41.241.341.641.7
Ger-many
13.322.526.633.134.935.235.4
35.535.635.735.8
Italy
2.99.4
13.520.5
23.123.223.6
23.623.723.723.8
OtherEurope
46.187.9
115.2165.9
174.9178.2179.8
180.1180.2180.3180.4
TotalEurope
143.1278.3366.4439.1
453. 8462.0465.7
465.9466.2467.5467.4
Canada
-39.71.7
10.5-38.9
-25.8-24.3-40.3
-30.3-27.8-26. 4-26.5
LatinAmerica
12.715.7
175.0166.3
172.6173.5175.2
175.6175.7175.8176.0
FarEast
7.917.024.533.8
36.235.936.6
36.736.937.037.1
Allother
1.13.56.89.7
9.910.310.4
10.510.410.410.4
TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIES
Net Purchases by Foreigners
From Jan. 2, 1935,through—
1935—Dec. 311936—Dec. 301937—Dec. 291938—Dec. 28
1939— Mar. 29Apr. 26May 31
June 7_ _June 14June 21June 28
Total
316.7917.4
1,162.01, 210. 9
1,180. 61, 202. 91, 209. 2
1,210.61, 208. 31, 205. 61, 199. 3
UnitedKing-dom
149.8367.7448.7472.6448. 3452.6448.9
449.0444.8443.2442.0
France
23.464.770.376.5
72.373.975.6
76.075.875.474.4
Neth-er-
lands
50.5157.6213.8212.9
217.7224.1228.9
230.1231.0231.3231.0
Switz-er-
land
55.1200.2275.3301.7
301.7310.0313.9314.4315.2315.1315. 0
Ger-many
-5 .4- 7 . 5
-17.4-22.7
-23.4-24.2-24.6
-24.8-24.8-25.0-25.2
Italy
- . 1- 3 . 3- 4 . 9-5 .4
- 5 . 5- 5 . 5-5 .6
- 5 . 5- 5 . 5-5 .6- 5 . 5
OtherEurope
12.938.555.756.6
56.556.757.2
57.657.357.156.9
TotalEurope
286.2818.0
1,041. 61,092. 3
1, 067. 61, 087. 61,094. 4
1, 096. 81, 093. 71, 091. 51,088. 4
Canada
2.832.637.627.8
18.816.716.6
15.916.316.213.9
LatinAmerica
3.715.518.223.4
24.625.625.8
25.725.725.725.7
FarEast
21A44.154.756.4
57.960.459.0
58.658.958.657.6
Allother
2.67.19.8
11.0
11.712.513.5
13.613.713.713.7
TABLE 7.—BROKERAGE BALANCES, BY COUNTRIES
From Jan. 2, 1935,through—
1935—Dec. 311936— Dec. 301937—Dec. 291938—Dec. 28
1939—Mar. 29Apr. 26May 31
June 7June 14June 21June 28 .__
Total
6.012.947.547.6
63.973.072.7
71.672.673.874.0
UnitedKing-dom
0)4.0
11.513.2
16.317.418.0
17.918.718.518.1
France
2.410.411.512.6
16.016.316.3
15.215.618.516.8
Neth-er-
lands
1.3- . 95.06.8
8.810.39.5
9.29.39.59.6
Switz-er-
land
2.59.1
10.88.8
9.610.510.8
11.311.711.711.9
Ger-many
o-'.70)- . 2
o- . 1
2
- . 2- . 2- . 1- . 3
Italy
.1
.3
.1
.2
.2
.3
.2
.2
.2
. 1
. 1
OtherEurope
1.4.4
5.05.3
6.67.57.3
6.86.97.27.0
TotalEurope
7.622.644.046.7
57.462.261.9
60.462. 163.563.2
Canada
- 4 . 5- 7 . 6
3.52.6
5.69.18.7
9.39.08.69.3
LatinAmerica
1.0- 4 . 2- . 5- . 9
.1
.7
.8
.8
. 7
.8
.8
FarEast
2.92.1.5
-1 .0
.6
.61.0
.8
.5
.7
.4
Allother
- . 9(2)(2)
.2
.3
.4
.4
.2
.2
.2
.3
i Inflow less than $50,000. « Outflow less than $50,000.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 933
INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—ContinuedOUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES
[Outstanding amounts in millions of dollars]
TABLE 8.—SHORT-TERM LIABILITIES TO FOREIGNERS, BY COUNTRIES
v Preliminary.1 Securities and silver coin held as cover for fiduciary issue. Currency and Bank Notes Act, 1939 (see BULLETIN for April 1939, p. 271), fixed
fiduciary issue at £300,000,000 and provided for valuation of gold at current prices instead of legal parity, effective March 1, 1939. For previousstatus of fiduciary issue see BULLETIN for April 1939, p. 339.
2 On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account.3 Effective Mar. 1, 1939, gold valued at current prices instead of legal parity and about £5,500,000 transferred from Exchange Account to
Bank. See note 1.4 On July 12, 1939, £20,000,000 of gold transferred from Exchange account to Bank of England.6 By decree of Nov. 12, 1938 (see BULLETIN for Jan. 1939, p. 29), gold revalued on basis of 27.50 milligrams gold 0.900 fine per franc; on Nov. 14
increment of nearly 31,500,000,000 francs was applied to partial reimbursement of advances to Government, which stood at authorized maximumof 52,000,000,000 francs on that date. Permanent debt of Government to Bank, included above in Other Assets, was simultaneously increased by6,800,000,000 francs. For details of revaluations in October 1936 and July 1937 see BULLETIN for Dec. 1938, p. 1091.
6 Negotiable bills of Caisse Autonome and bills bought under authority of decree of June 17, 1938 (see BULLETIN for Aug. 1938, p. 650).7 Bills and warrants endorsed by National Wheat Board (law of Aug. 15, 1936—see BULLETIN for Oct. 1936, pp. 785-786), and bills rediscounted
for account of Banques Populates (law of Aug. 19, 1936—see BULLETIN for Oct. 1936, p. 788).8 Includes advances granted under authority of Conventions between Bank of France and Treasury of June 18, 1936, June 30, 1937, March 22,
1938, and April 14, 1938, as modified by Convention of Nov. 12, 1938 (see BULLETINS for July 1936, p. 536; Aug. 1937, p. 720; June 1938, p. 452; Aug.1938, p. 650, and Jan. 1939, p. 30).
9 On April 20, and again on Aug. 3, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France.i° Figures not yet available.NOTE.—For further explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463.
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i Not shown separately on Beicbsbarjk staterrent after June 15, 1939.NOTE.—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p . 463.
r Revised.1 N a m e changed to Nat ional B a n k of Bohemia and Moravia , Prague , b y decree of M a r c h 31, 1939.2 I t ems for issue and bank ing depa r tmen t s consolidated.3 Gold revalued in pa r t on March 6, 1939 at .2802 gram fine gold per kroon.* I n accordance w i t h law of December 22,1938, gold revalued on December 31,1938, at approximate ly .02 gram fine gold per m a r k k a .5 I n accordance wi th law X X V of 1938 gold revalued on J a n u a r y 15, 1939, at .1754 gram fine gold per pengo and result ing increment included
in other assets.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 937
CENTRAL BANKS—Continued
Central bank[Figures as of last report
date of month]
Bank of Java (millions of guilders):GoldForeign bills _ __ _Loans and discountsOther assets _ _ _Note circulationDepositsOther liabilities
Bank of Latvia (millions of lats):Gold -Foreign exchange reserve.- _Loans and discountsOther assetsNote circulationDepositsOther liabilities
Bank of Lithuania (millions of l i tu):Gold _ _Foreign exchange.- __ __Loans and discounts _Other assets. _ _ __ __ __Note circulationDepositsOther liabilities
p Revised.1 Figures not yet available.2 Not reported separately on bank statement; included with loans and discounts.3 Agricultural and urban loans in process of liquidation.
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938 FEDERAL RESERVE BULLETIN OCTOBER 1939
BANK FOR INTERNATIONAL SETTLEMENTS[In thousands of Swiss gold francs i]
Assets
Gold in bars _~Cash on hand and on current account
with banksSight funds at interest
Rediscountable bills and acceptances(at cost)
Time funds at interestSundry bills and investments
Other assets _ _ _.
Total assets
1939
Aug. 31
28, 588
26, 58212, 980
177, 24135, 627
229, 588
1,570
512,176
July 31
55, 807
17, 21817, 603
228, 08235, 309
220, 824
1,327
576,169
1938
Aug. 31
30, 945
48,12015, 679
223, 37453, 852
252, 903
1,603
626, 476
Liabilities
Demand deposits (gold) ___ _
Short-term deposits (various curren-cies) :
Central banks for own accountOther
Long-term deposits: Special accounts.-.
Other liabilities
Total liabilities
1939
Aug. 31
14,112
53, 8232,463
253, 512
188, 265
512,176
July 31
14, 355
114, 7183,558
255,122
188, 417
576,169
1938
Aug. 31
9,107
166, 0898,498
255, 534
187, 248
626, 476
i See BULLETIN for December 1936, p. 1025.
MONEY RATES IN FOREIGN COUNTRIES[Per cent per annum]
r Revised. c Corrected.1 Based on data for part of month, no quotations being available for remainder of month.NOTE.—For explanation of table see BULLETIN for November 1926, pp. 794-796; April 1927, p. 289; July 1929, p. 503; November 1929, p. 736; May
1930, p. 318; and September 1938, p. 757.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 939
DISCOUNT RATES OF CENTRAL BANKS[Per cent per annum]
v Preliminary.i Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large
Berlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes in reporting practice(See BULLETIN for June 1935, p. 389).
NOTE.—For other back figures and explanation of table see BULLETIN for October 1933, pp. 641-646, June 1935, pp. 388-390, and August 1939,p. 699.
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 941
FOREIGN EXCHANGE RATES[Average of noon buying rates for cable transfers in New York. In cents per unit of foreign currency]
NOTE.—Developments affecting averages since July 1939 have been as follows: Cuba—quotations temporarily omitted beginning Aug. 11; ex-change quotations on following countries partly nominal since Aug. 24, 1939: Australia, Denmark, Finland, Germany, Hong Kong, Italy, Japan,Norway, Poland, Portugal, South Africa, Straits Settlements, Sweden, and Yugoslavia; quotations not available as follows: Argentina, Denmark,Finland, Hungary, Poland, Rumania, and Yugoslavia—Aug. 28-31; Bulgaria—Aug. 30-31; Norway—Aug. 28-29; and Turkey—Aug. 25 and 28.For futher information concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotaton,see BULLETIN for March 1938, p . 244; March 1939, p . 236; and September 1939, p. 831.
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942 FEDERAL RESERVE BULLETIN O C T O B E R 1939
PRICE MOVEMENTS IN PRINCIPAL COUNTRIESWHOLESALE PRICES—ALL COMMODITIES
p Preliminary.-Source*.—See BULLETIN for March 1931, p. 159; March 1935, p. 180; October 1935, p. 678; March 1937, p. 276; and April 1937, p. 372
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OCTOBER 1939 FEDERAL RESERVE BULLETIN 943
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued
RETAIL FOOD PRICES[Index numbers]
Year ormonth
1926 _
19291930 __19311932193319341935193619371938
1938-JulyAugustSeptemberOctoberNovemberDecember.
1939-JanuaryFebruary..MarchAprilM a yJune .JulyAugust
UnitedStates1923-
1925=100
109
1051008268667481828579
807879787879
7877767777767775
Eng-landJuly
1914=100
161
154145131126120122125130139141
146141140139140139
138138135135134134139137
FranceJuly
1914=100
554
611614611536491481423470601702
671677697725727742
748744742734738739741
Ger-many1913-
1914=100
146
156146131116113118120122122122
124124121121121121
122122123122123124125
Nether-lands1911-
1913=100
161
162150136119120124118120127130
130129130130128130
130
124
Switz-erlandJune
1914=100
160
156152141125117115114120130130
129129130130130130
129129128129130
'132132
COST OF LIVING[Index numbers]
Year ormonth
1926
19291930193119321933193419351936 _19371938
1938 Ju ly .AugustSeptemberOctoberNovemberDecember
1939-JanuaryFebruaryMarch.April. __M a yJune__..JulyAugust
UnitedStates1923-
1925=100
103
100978980767981828483
83
83
82
Eng-landJuly
1914=100
170
164158148144140141143147154156
159156156155156156
155155153153153153156155
France l
1930=100
100979187-837886
102117
117
120
122
P123
Ger-many1913-
1914=100
142
154148136121118121123125125126
127127125125125125
126126126126126127127
Nether -lands1911-
1913=100
168
168161151141139140136
2 132137139
139138139138137138
138
136
Switz-erlandJune
1914=100
162
161158150138131129128130137137
137136137137137137
137136136136137137138
r Revised.Sources.—See BULLETIN for April 1937, p. 373.
p Preliminary.1 New index of Statistique Generate de la France covering all depart-
ments except Seine-et-Marne. New index not available back of 1930;old index (Jan.-June 1914=100), which was for Paris only, was 581 in1930, 556 in 1929, and 505 in 1926.
2 Revised index from March 1936 (see BULLETIN for April 1937, p. 373).
SECURITY PRICES[Index numbers except as otherwise specified]
Year or month
Number of issues. _
1926
1929.19301931193219331934. .193519361937. _1938
1938—JulyAugustSeptember . . .OctoberN o v e m b e r . .December . . .
1939—JanuaryFebruaryMarchAprilM a y . _ . .JuneJulyAugust
i Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Oo.s Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index
beginning January 1937, January-March 1937=100; average yield in base period was 3.39 per cent.» Exchange closed from July 13 to Sept. 2, 1931, and from Sept. 19, 1931, to Apr. 11,1932. Index for 1931 represents average of months January-
June; index for 1932 represents average of months May-December.< New index. See note 2.Sources.— SEE BULLETIN for February 1932, p. 121; June 1935, p. 394; April 1937, p. 373; July 1937, p 698; and November 1937, p 1172.
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FEDERAL RESERVE DIRECTORY
945
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
MARRINER S. ECCLES, Chairman
RONALD RANSOM, Vice ChairmanM. S. SZYMCZAK
JOHN K. MCKEE
CHESTER C. DAVIS
ERNEST G. DRAPER
LAWRENCE CLAYTON, Assistant to the ChairmanELLIOTT THURSTON, Special Assistant to the ChairmanCHESTER MORRILL, Secretary
LISTON P. BETHEA, Assistant SecretaryS. R. CARPENTER, Assistant SecretaryJ. C. NOELL, Assistant Secretary
WALTER WYATT, General CounselJ. P. DREIBELBIS, Assistant General CounselGEORGE B. VEST, Assistant General CounselB. MAGRUDER WINGFIELD, Assistant General Counsel
LEO H. PAULGER, Chief, Division of ExaminationsR. F. LEONARD, Assistant Chief} Division of ExaminationsC. E. CAGLE, Assistant Chief, Division of Examinations
E. A. GOLDENWEISER, Director, Division of Research and StatisticsWOODLIEF THOMAS, Assistant Director, Division of Research and Statistics
EDWARD L. SMEAD, Chief, Division of Bank OperationsJ. R. VAN FOSSEN, Assistant Chief, Division of Bank OperationsJ. E. HORBETT, Assistant Chief, Division of Bank Operations
CARL E. PARRY, Chief, Division of Security LoansPHILIP E. BRADLEY, Assistant Chief, Division of Security Loans
O. E. FOULK, Fiscal AgentJOSEPHINE E. LALLY, Deputy Fiscal Agent
FEDERAL OPEN MARKET COMMITTEE
MARRINER S. ECCLES, Chairman
GEORGE L. HARRISON, Vice ChairmanCHESTER C. DAVISERNEST G. DRAPERM. J. FLEMINGGEORGE H. HAMILTONHUGH LEACHWM. MCC. MARTINJOHN K. MCKEERONALD RANSOM
M. S. SZYMCZAK
CHESTER MORRILL, Secretary
S. R. CARPENTER, Assistant SecretaryWALTER WYATT, General CounselJ. P. DREIBELBIS, Assistant General CounselE. A. GOLDENWEISER, EconomistJOHN H. WILLIAMS, Associate EconomistALLAN SPROUL, Manager of System Open Market Account
DistrictDistrictDistrict
DistrictDistrictDistrictDistrictDistrict
DistrictDistrictDistrictDistrict
FEDERAL ADVISORY COUNCIL
No. 1 (BOSTON) THOMAS M. STEELE
No. 2 (NEW YORK) LEON FRASER
No. 3 (PHILADELPHIA) HOWARD A. LOEB,
V ice-PresidentNo. 4 (CLEVELAND) T. J. DAVIS
No. 5 (RICHMOND) ROBERT M. HANES
No. 6 (ATLANTA) EDWARD BALL
No. 7 (CHICAGO) EDWARD E. BROWN
No. 8 (ST. LOUIS) WALTER W. SMITH
PresidentNo. 9 (MINNEAPOLIS) JOHN CROSBY
No. 10 (KANSAS CITY) JOHN EVANS
No. 11 (DALLAS) R. E. HARDING
No. 12 (SAN FRANCISCO)___PAUL S. DICK
WALTER LICHTENSTEIN, Secretary
946
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SENIOR OFFICERS OF FEDERAL RESERVE BANKS
Federal ReserveBank of—
Boston
New York ___
Philadelphia
Cleveland
Richmond
Atlanta
Chicago .
St. Louis __ __. _
Minneapolis
Kansas City
Dallas
San Francisco .
Chairman and FederalReserve Agent
F. H. Curtiss
Owen D. Young_
T B McCabe
G. C. Brainard
Robert Lassiter
F. H. Neely
R. E. Woodi
W. T. Nardin
W C. Coffey 1
R. B. Caldwell
J. H. Merritt
St. George Holden i___
President
R. A. Young
G. L. Harrison
J S Sinclair
M J. Fleming
Hugh Leach
R. S. Parker
G. J. Schaller
W. McC. Martin
J. N. Peyton
G. H. Hamilton...
R. R. Gilbert
W. A. Day
First Vice President
W. W. Paddock
Allan Sproul
F J Drinnen
F J Zurlinden
J. S. Walden, Jr. _._
H. P. Preston
F. G. Hitt
0 S. Powell
C. A. Worthington
E. B. Stroud
Ira Clerk
Vice Presidents
W. Willett 2
L. R. RoundsW. S. LoganJ. H. WilliamsR. M. GidneyL. W. Knoke
C A Mcllhenny 3
W. J. DavisE. C. Hill
W. H. FletcherG. H. WagnerW. F. Taylor 3
J. G. FryG. H. Keesee 2
W. S. McLarin, Jr.3H. F. ConniffM. H. Bryan
C. S. YoungW. H. Snyder 3
J. H. Dillard
0. M. AtteberyC M . Stewart 2
H I Ziemer 3
E. W. Swanson
H. G. LeedyJ. W. Helm 3
R. B. ColemanW. J. EvansW. 0. Ford 2
W. M. HaleC. E. Earhart 2R. B. West
1 Deputy chairman. 2 Cashier. 3 Also cashier.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
St. Louis:Little Rock BranchLouisville BranchMemphis Branch __
Managing director
R. M. O'Hara
B. J. LazarP. A. Brown
W. R. MilfordW. T. Clements
P. L. T. BeaversG. S. Vardeman, Jr.J. B. Fort, Jr.L. M. Clark
R. H. Buss
A. F. BaileyF. D. RashW. H. Glasgow
Federal Reserve Bank of—
Minneapolis:Helena Branch
Kansas City:Denver Branch __.Oklahoma City Branch _.Omaha Branch
Dallas:El Paso Branch.Houston Branch __San Antonio Branch
San Francisco:Los Angeles Branch _Portland Branch. . . .Salt Lake City BranchSeattle Branch
Managing director
R. E. Towle
J. E. OlsonC. E. DanielL. H. Earhart
J. L. HermannW. D. GentryM. Crump
W. N. AmbroseD. L. DavisW. L. PartnerC. R. Shaw
SUBSCRIPTION PRICE OF BULLETIN
The FEDERAL RESERVE BULLETIN is an official publication of the Board of Governors ofthe Federal Reserve System. The BULLETIN is issued monthly and is sent to member bankswithout charge. To others the subscription price, which covers the cost of paper and print-ing, is as follows: in the United States, Canada, Mexico, and insular possessions, $2.00 peryear and 20 cents per single copy; elsewhere, $2.60 per year and 25 cents per single copy.
947
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FEDERAL RESERVE DISTRICTS
S \ MINN, i
MINNEAPOLIS
S.DAK. I
• M M BOUNDARIES OF FEDERAL RESERVE DISTRICTS
- , _ BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES
(APPROXIMATE IN THE ST. LOUIS DISTRICT)® FEDERAL RESERVE BANK CITIES.• FEDERAL RESERVE BRANCH CITIESO FEDERAL RESERVE BANK AGENCY
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