frb_011937

FKDERAL RESERVEBULLETIN

JANUARY 1937

Gold Movements and Excess ReservesStatistics of International Capital Transac-

tionsDefinition of "Interest" in Regulation Q

*********

BOARD OF GOVERNORSOF THE FEDERAL RESERVE SYSTEM

WASHINGTON

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

TABLE OF CONTENTS

PAGE

Review of the monthNew Treasury gold policyGold movements and excess reserves 1-6National summary of business conditions . 7-8Summary of financial and business statistics 10Law DepartmentEffective date of definition of interest in section 1 (f) of Regulation Q 11Insurance of deposits 12-13Monetary legislation in Czechoslovakia and Rumania 14-16Statistics of international capital transactions of the United States 17-39Financial, industrial, and commercial statistics, United States:

Member bank reserves, Reserve bank credit, and related items 42Federal Reserve bank statistics 43-47Reserve position of member banks; deposits in larger and smaller centers 48Money in circulation 49Gold stock and gold movements 50All banks in the United States 51All member banks 52-53Reporting member banks in leading cities 54-57Bank suspensions; bank debits; Postal Savings System 58Acceptances, commercial paper, and brokers' balances 59Federal Reserve bank discount rates 60Money rates and bond yields 61Security markets 62Treasury finance 63Governmental corporations and credit agencies 64-65Production, employment, and trade 66-74Wholesale prices 75December crop report 76

International financial statistics:Gold reserves of central banks and governments 78Gold production 79Gold movements 79-81Central banks 82-85Bank for International Settlements 85Commercial banks 86Discount rates of central banks 87Money rates 87Foreign exchange rates 88Price movements:

Wholesale prices 89Retail food prices and cost of living 90Security prices 90

Federal Reserve directory:Board of Governors and staff; Open market Committee and staff; Federal Advisory Council 92Senior officers of Federal Reserve banks; managing directors of branches 93

II


FEDERAL RESERVE BULLETINVOL. 23 JANUARY 1937 No. 1

REVIEW OF THE MONTHOn December 21 the Secretary of the Treas-

ury announced that the Treasury "proposes,whenever it is deemed advisa-

New Treasury b j e an (j j n t h e public interest togold policy ^

do so, to take appropriate actionwith respect to net additional acquisitions orreleases of gold by the Treasury Department.This will be accomplished by the sale of ad-ditional public-debt obligations, the proceedsof which w7ill be used for the purchase of gold,and by the purchase or redemption of out-standing obligations in the case of move-ments in the reverse direction."

The operations under this policy permitneutralizing the effect on member bank re-serves of future gold acquisitions or sales ofsuch gold. Effects on reserves of additionsto the gold supply, either from imports orfrom new production, will be offset by thesale to the public of an equivalent amountof United States Government obligations andby the setting aside of the purchased gold inan inactive account in the Treasury. In thisway the gold will be kept out of the country'scredit base. An outward movement of goldacquired through sale of bills will be simi-larly offset by the purchase or redemption ofUnited States obligations in the market, thusrestoring to it the funds lost through the ex-port of gold. To this extent, therefore, thevolume of member bank reserves will neitherincrease nor decrease as the result of changesin the supply of gold.

The announcement by the Secretary of theTreasury states that the action was takenafter conferring with the Board of Governorsof the Federal Reserve System. The problemof dealing with the volume of excess reserveswhich is now in existence will not be affectedby the new policy.

Reserve balances of member banks, whichhave been increasing rapidly in recent years,

reached a new high level ofContinued growth $6,800,000,000 in the earlyblnir^rves P a r t o f December, largely

as a result of continued goldimports. Of this amount $4,600,000,000 con-stituted required reserves and $2,200,000,000excess reserves. From the effective date ofthe 50 percent increase in reserve require-ments last August to the beginning of De-cember total reserves of member banks in-creased by $580,000,000. Of this increase$160,000,000 has been absorbed by an in-crease in required reserves resulting froma growth in the member banks' deposit lia-bilities, and $420,000,000 has been added toexcess reserves of member banks throughoutthe country.

In the three weeks from December 2 toDecember 23 excess reserves declined byabout $320,000,000, as a result of increases inmoney in circulation preceding Christmasand in balances of the Treasury at the Re-serve banks, built up by quarterly incometax receipts and the sale for cash of newTreasury securities. This reduction in re-serves, however, is temporary, since thereturn flow of currency from circulationafter the Christmas holidays and disburse-ments by the Treasury out of its balanceswith the Reserve banks may be expected tobuild up member bank reserves in Januaryto a level at least as high as that at the be-ginning of December. The new Treasurypolicy of offsetting the effect of gold move-ments on reserves will prevent any furtherincrease that might result from additionalgold imports and purchases of domestic gold.

Growth of member bank reserves in the


FEDERAL RESERVE BULLETIN JANUARY 1937

volume anddistribution ofexcess reserves

past three years has been due to gold importsof $4,000,000,000, to gold ac-

Factors affecting quired f rom domestic sourcesin the amount of $500,000,-000, and to $800,000,000 ofsilver purchased by the

Treasury against which silver certificateswere issued. While gold imports have beenthe principal factor in the growth of the totalvolume of member bank reserves, other fac-tors have widely distributed these reservesamong the different groups of member banksand the different sections of the country.This distribution has been effected by thecomplex of industrial, commercial, financial,and governmental transactions which involvethe continuous shifting of funds amongregions and among banks.

Gold imported into this country is sold tothe Treasury and Treasury checks are drawnin payment for the gold or for the foreignexchange used to purchase it. These checksare drawn upon the Treasury's balances atthe Federal Reserve banks, and become avail-able to member banks, which deposit themat the Reserve banks and in exchange receivecredits to their reserve accounts. Reservebalances of member banks receiving Treasurychecks are thereby increased. In the pastthe Treasury did not offset this increase butreplenished its balances with the Reservebanks by giving the Reserve banks an equiva-lent credit in the gold-certificate account.Under the newly adopted Treasury policythe Treasury will segregate the gold and willreplenish its balances at the Reserve banksby the sale of Treasury bills in the market.This operation will diminish member bank re-serves, thus offsetting the previous increase.

Since most of the foreign exchange trans-actions take place in New York, the effect ofgold imports on member bank reserves hasbeen as a rule immediately reflected in ad-ditions to the reserves of New York Citybanks, but in time these reserves have becomewidely distributed among banks elsewhere.In some cases this transfer to other parts of

the country may occur immediately after oreven antedate the completion of the goldtransaction. The foreign exchange used toobtain the gold may be obtained from anexporter, a foreigner purchasing securitiesin this country, or someone transferring abalance to this country, and this seller of ex-change may deposit the funds or use them tomake payments elsewhere than in New York.Thus reserves may be transferred from aNew York City bank to a bank elsewherebefore the gold is sold to the Treasury.

Subsequent to the importation of gold thecontinuous flow of funds in connection witha variety of payments leads to a broad distri-bution of the additional reserves thus ac-quired among different banks and regions.It is not possible to measure quantitativelythe complex elements that make up this flowof payments, but several of the more im-portant movements may be enumerated. Im-provement in agricultural conditions since1933 and the increase in farm income havecarried funds to agricultural regions in pay-ment for their crops sold at higher prices.Likewise industrial expansion in various sec-tions of the country has resulted in a sub-stantial shifting of funds to such sections.Perhaps the most important factor in thegeographical distribution of surplus funds ofbanks since 1933, however, has been the ex-penditure by the Treasury of funds raised bythe sale of Government obligations to banks.

Funds spent by the Treasury are not neces-sarily raised in the locality in which they arespent and do not necessarily remain in theparticular section in which payments aremade. The bulk of them may be transferredfrom one locality to another for the purposeof investment or in payment for goods andservices; and with each transfer there is ashift of member bank reserves through theclearing system. City banks, especially thosein New York City, have until recently boughtrelatively more Government securities thanthe so-called country banks, but expenditureby the Government throughout the country of


JANUARY 1937 FEDERAL RESERVE BULLETIN

funds obtained from city banks has tended toreduce the excess reserves of city banks andto distribute them widely among countrybanks in different parts of the country.

Country banks thus acquiring excess funds

FACTORS OF GAINS AND LOSSES OF RESERVE FUNDSAT BANKS IN NEW YORK F. R. DISTRICT

BILLIONS OF DOLLARS BILLIONS OF DOLLARS4

Weekly figures of net gains and losses cumulative from January 1,1934, through December 16, 1936.

have kept a portion as excess reserves withFederal Reserve banks, have invested a por-tion, and have placed a substantial amount ondeposit with correspondent banks in financialcenters. Balances carried by country bankswith city correspondents are now more thantwice as large as they were at any time priorto 1934. City banks have, therefore, con-tinued to hold a large part of legal excess re-serves, but a portion of these reserves in effectbelongs to country banks which may with-draw them on demand.

Figures have been compiled by the Fed-eral Reserve Bank of New York measuringimportant elements in the movement of fundinto and out of the New York Federal Re-serve district, comprised mostly of transferinto and out of New York City. These figure;illustrate the way in which reserves of banksin New York are affected by gold imports andthe shifts of funds between them and bank;

in other parts of the country. A summaryof the more important of these figures isgiven in the chart, which shows cumulativemovements since the beginning of 1934 whengold imports, excess reserves, and bankers'balances all began to increase rapidly.

The chart shows that during the past threeyears New York banks have gained reservesthrough gold imports, and that there has alsobeen a net gain of funds by the New Yorkdistrict from other parts of the country aris-ing from an increase in balances held in NewYork City for outside banks and from othertransactions growing largely out of ordinarycommercial and financial operations. Dur-ing the same period the Treasury has madelarge withdrawals of funds from the NewYork district, representing the excess offunds raised in the district through the saleof Government securities and through taxreceipts over Government disbursements inthe district. These funds have been spentby the Government in other parts of thecountry, thus shifting reserve funds fromNew York banks to outside banks. Uponreceipt of these funds the banks outside ofNew York, however, have in part redepositedthem in the form of bankers' balances withNew York City banks. As a consequence ofthese various movements total reserves andexcess reserves of New York banks and totalreserves, excess reserves, and New York bal-ances of outside banks have all shown a con-siderable growth.

The preceding paragraphs have describedhow gold imports in recent years have in-

creased the aggregate vol-ume of excess reserves, andhow Government borrowingand spending and other ordi-nary business and financial

transactions have distributed the increasedreserves among the various classes of mem-ber banks. As shown in the following tableand also in the chart, all classes of memberbanks in the latter half of November hadmuch larger excess reserves than in January

Distribution ofreserves amongclasses ofmember banks


FEDERAL RESERVE BULLETIN JANUARY 1937

1934, and, notwithstanding the recent in-crease in reserve requirements, the ratio ofexcess to required reserves for member banksin the aggregate was somewhat larger thanat the beginning of 1934.

DISTRIBUTION OF EXCESS RESERVES, BY CLASSES OFBANKS

[Averages of daily figures]

Central reserve citybanks:

New YorkChicago

Reserve city banks.Country banks

All memberbanks

Amount of excess re-serves (in millions of

dollars)

Jan.1934

147171305242

Aug.1-15,1936

1.226290970619

3,105

Nov.16-30,1936

767225729518

2,240

Percent of excess torequired reserves

Jan.1934

201105264

Aug.1-15,1936

96103104131

Nov.16-30,1936

49

Aggregate reserve balances of memberbanks in the latter part of November wereslightly less than 50 percent in excess of re-quirements. Banks in reserve cities heldexcess reserves of 50 percent, while the so-called country banks held reserves of 70 per-cent above requirements. Central reservecity banks in New York City, with reservesof about 40 percent above requirements, hadthe smallest percentage of excess reserves ofany class of banks.

Excess reserves of the various classes ofbanks are smaller than they were before theincrease in requirements last August, but,owing to the subsequent growth in total re-serves, they are substantially larger than im-mediately after the increase went into effect.All classes of member banks have shared inthis increase in reserves, but the gains havebeen unequal, and the relative distribution ofexcess reserves among the various classes ofbanks has been considerably altered. In thecase of New York City banks required re-serves increased by $675,000,000 betweenthe first half of August and the latter part ofNovember, as a result of the Board's action

and of further expansion in deposits. Sincethe reserve funds of these banks increasedby only $215,000,000, their excess reservesdeclined by $460,000,000. Reserve city banks,at which required reserves have increased by$530,000,000, showed a loss of but $240,000,-000 in excess reserves. At country banks,notwithstanding increased requirements ofnearly $260,000,000, excess reserves declinedby only $100,000,000 from an unusually highlevel in the first half of August, and are nowat about the same level as in the first halfof 1936.

EXCESS RESERVES OF MEMBER BANKSBILLIONS OP DOLLARS BILLIONS OF DOLLARS

Averages of daily figures for weeks ending Friday; figures forcountry banks and for all member banks are estimated.

Owing to the large volume of balances thatbanks outside of New York City carry with

correspondent banks, the effective,Bankers' a s contrasted with the technical, re-balances serve position of these banks is con-

siderably understated when theirbalances with Federal Reserve banks aloneare considered. Banks outside of New Yorkrequire balances with correspondents to serveas secondary reserves and for clearing pur-poses, but the volume of such balances at thepresent time is much larger than normal re-quirements. New York City banks have con-tinued to hold only small working balanceswith correspondents. On June 30, 1936, allmember banks held demand balances with



other domestic banks of $3,800,000,000,whereas from 1922 to 1929 they held anaverage of $1,900,000,000, which may be con-sidered as a more nearly normal amount ofworking balances.

Of the total bankers' balances on June 30about $1,700,000,000 belonged to countrymember banks, compared with $900,000,000held by them at the end of 1929. Last Julyand August, following announcement of theincrease in reserve requirements and aboutthe time of its effective date, between $100,-000,000 and $200,000,000 of bankers' balanceswere withdrawn from New York City banks,and there were also some withdrawals frombanks in other cities. Since that time, how-ever, country banks have again built up theirbalances with correspondents, and it is esti-mated that in November they were fully$200,000,000 larger than last June. Whenbalances with correspondent banks, as well asexcess reserves, are considered, it appearsthat total unutilized funds owned by countrybanks at present are larger than last summer,before reserve requirements were increased.

It has been pointed out that in Novembereach class of member banks taken as a group

had aggregate rieserve bal-Reserve position of a n c e s Considerably in ex-individual banks cess of requirements. A

survey of the reserve posi-tion of member banks shows that this wastrue also of the majority of individual mem-bers. The results of this survey have beentabulated so as to show the number of banksthat have reserves 16% percent above re-quirements, or sufficient to meet an increaseof one-half of the Board's authority to raisereserve requirements; banks that have re-serves between 16% and 33% percent aboverequirements, and banks that have reserves33% percent or more above requirements,which would be sufficient to meet the maxi-mum authorized increase in requirements.Out of the total of 6,400 member banks in thefirst half of November, nearly 3,800, or 59percent, had reserves that were 33% percent

5

or more in excess of current requirements.About 60 percent of all country banks and 47percent of all central reserve and reserve citybanks were in this position. The results ofthe survey are summarized in the followingtable:NUMBER OF MEMBER BANKS DISTRIBUTED ACCORDING

TO PERCENTAGE OF EXCESS RESERVES[Based on daily averages for first half of November 1936]

Ratio of excess torequired reserves

Less than 16% percent16% percent-33% percent.__333^ percent and over

Total number of mem-ber banks . .

Allmem-

berbanks

1,4451,1713, 772

6, 388

Central reservecity banks

NewYork

148

15

37

Chi-cago

41

12

17

Re-servecity

banks

11071

155

336

Coun-try

banks

1,3171,0913,590

5,998

The 2,600 banks which in the first half ofNovember had excess reserves amounting toless than 33% percent of required reserveswere short of this amount by a total of $350,-000,000, of which $120,000,000 was at centralreserve city banks in New York and $230,-000,000 at other banks. With comparativelyfew exceptions banks outside of New YorkCity were in a position to cover the differenceby using not more than half of their balanceswith correspondents, which have been ap-proximately twice as large as was customaryprior to 1934. New York City banks, how-ever, hold only small working balances withother banks. The principal New York banksshowing excess reserves of less than a thirdof required reserves hold substantial amountsof liquid assets, such as Treasury bills andnotes, bankers' acceptances, and brokers'loans, which can be readily sold or called andthus shifted to other banks that have excessreserves.

An increase in reserve requirements at atime when member banks hold sufficient ex-

cess reserves to meet theEffects of increase increase results in makingin requirements unavailable as a basis of

credit expansion a portionof member bank funds for which these banks


6 FEDERAL RESERVE BULLETIN JANUARY 1937

are not finding a profitable outlet. An in-crease at such a time has no immediate effectupon the supply of credit in the money mar-ket, but merely limits a possible futuregrowth in this supply.

The balance sheet of the Federal Reservebanks is in no way changed by an increasein reserve requirements of member banks,except to the extent that member banks mayborrow to meet the increase. So long as mem-ber banks have excess reserves out of whichto meet the increase, it does not affect thetotal amount of deposits at the Reserve banks,but merely converts a portion of the depositsalready held from reserves held by memberbanks with the Reserve banks in excess ofrequirements to required reserves. It has noeffect whatever on the volume of funds avail-able to the Reserve banks for investment.

From the nature of the functions of theFederal Reserve banks it is clear that it is

not a correct description ofSource of their operations to say thatfending power t h e y invest funds deposited

with them by member banks.The lending power of the Re-

serve banks is derived from the authority theyhave to issue Federal Reserve notes and tocreate deposits on the basis of a 40 or a 35percent reserve, respectively, to be heldagainst notes and against deposits. When aReserve bank purchases in the market aUnited States Government obligation andpays for it, directly or indirectly, with adeposit credit on its books, it adds to the

reserve deposit of some member bank. It isfor this reason that the Reserve banks pur-chase United States Government securitieswhen they wish to ease the credit situationby placing additional funds at the disposal ofmember banks.

Mechanically the process is as follows:when a Reserve bank purchases a Govern-ment obligation, it pays for it by a checkdrawn on itself. The seller of the obligationdeposits this check at his bank, and the bankin turn deposits it at the Federal ReserveBank where it is credited to the depositingbank's account. Similarly when a Reservebank discounts paper for a member bank ormakes an advance to it, the member bank'sreserve account is credited with the amountinvolved. In both cases, therefore, memberbank deposits at the Federal Reserve banksare increased.

Limits of possible expansion by the Reservebanks are not related to the legal distinction,as between required and excess reserves, ofmember bank deposits that they hold, but areset by the amount of cash reserves of theReserve banks themselves. The extent towhich the lending power of the Federal Re-serve banks is put to use, however, is notdetermined by the theoretical possibilities ofexpansion on the basis of available reserves orby the possible earnings from such expansion,but solely by a consideration of the amountof reserve funds required for the accommoda-tion of commerce and business and the main-tenance of sound credit conditions.



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

Production, wage payments, and the dis-tribution of commodities to consumers in-creased considerably from October to No-vember. Wholesale commodity prices haveadvanced steadily since the end of October.

Production and employment.The Board'sindex of industrial production, which makesallowance for changes in the number of work-ing days in the month and for the usual sea-sonal variations, was 114 percent of the 1923-1925 average in November, as compared with109 percent in October. Output of both dura-ble and nondurable manufactures showed aconsiderable rise. Production of steel ingotsincreased further to a rate of 79 percent of

INDUSTRIAL PRODUCTIONJ

1929 1930 1931 1932 1933 1934 1935 1936

Monthly index of physical volume of production, adjusted forseasonal variation, 1923-1925 average = 100.

capacity in November, and output of auto-mobiles also increased. Figures for the firstthree weeks of December indicate continuedexpansion in output of both steel and auto-mobiles. In the plate glass industry, wherethere has been a strike, production wassharply reduced in November, and activityat lumber mills declined, reflecting the effectsof the maritime shipping strike on the PacificCoast. Increases in output were reported atmeatpacking establishments and textile mills,and sugar meltings and output of tobaccoproducts declined by less than the usual sea-sonal amount. At mines, coal production in-creased and output of crude petroleum andiron ore showed a smaller than seasonal re-duction.

Value of construction contracts awarded,according to figures of the F. W. Dodge Cor-poration, continued at about the same ratein November as in the previous month.

Factory employment showed little changefrom October to November, although a de-crease is usual at this season of the year, andthe Board's seasonally adjusted index ad-vanced to 96 percent of the 1923-1925 aver-age. The number employed at factories pro-ducing durable goods continued to increase,with the largest expansion in the automobileand machinery industries. There was a de-cline in employment at lumber mills and inthe glass industry. In the nondurable goodsindustries as a group employment showed asmaller decline than is usual in November.At shoe factories and establishments produc-ing wearing apparel smaller than seasonaldeclines were reported and there were in-creases in employment at cotton and woolentextile mills and at meat-packing plants.

DEPARTMENT STORE SALES

1929 1930 1931 1932 1933 1934 1935 1936

Indexes of value of sales, 1923-1925 average = 100.

Distribution.Department store sales in-creased substantially in November, and therewas also a rise in sales at variety stores andat chain grocery stores. Sales by generalmerchandise stores and mail order housesserving rural areas declined from the highlevel reported for October.

Freight-car loadings showed a smaller thanseasonal decrease in November. Loadingsof coal, coke, and grain increased contraryto the usual seasonal tendency, and shipmentsof miscellaneous commodities and of mostother classes of freight declined by less thanthe seasonal amount.



Commodity prices.The general level ofwholesale commodity prices continued to ad-vance from the middle of November to thethird week of December. There were sub-stantial increases in the prices of wheat,flour, nonferrous metals, and rubber. Pricesof wool, cotton yarns, and worsted yarns ad-vanced somewhat further and cotton, pigiron, and steel scrap prices also increased inthis period.

1929 1930 1931 1932 1933 1934 1935 1936

Indexes compiled by the United States Bureau of Labor Statis-tics, 1926 = 100. By months, 1929 to 1931 ; by weeks, 1932 to date.Latest figure is for week ending December 19, 1936.

Bank credit.The reserve position of mem-ber banks in recent weeks has been influencedlargely by temporary seasonal developmentsin connection with holiday currency require-ments and mid-December financing by theUnited States Treasury.

Notwithstanding the increased demandfor currency for Christmas shopping, therewas a further growth in demand deposits at

weekly reporting member banks through thefirst half of December, reflecting additions tomonetary gold stock, as well as a sharp in-crease in bank loans.

At reporting banks outside New York Cityholdings of Government securities increasedby $140,000,000 in the four weeks endingDecember 16, while at New York City banksthey showed a further small decline. Therewas an increase of $100,000,000 in loans tobrokers and dealers in securities in NewYork City, largely for the purpose of buyingUnited States Government securities. Com-mercial loans showed a further increase of$150,000,000, carrying the total volume ofsuch loans to a level $800,000,000 higher thana year ago.

MEMBER BANK CREDIT

Wednesday figures for reporting member banks in 101 leadingcities, September 5, 1934, to December 16, 1936. Loans on realestate, loans to banks, and acceptances and commercial paperbought included in total loans and investments but not shownseparately.



MEMBER BANK RESERVES AND RELATED ITEMSBILLIONS OF DOLLARS

BILLIONS OF DOLLARS Wednesday figures

1930 1931 1932 1933 1934 1935 1936

MEMBER BANKRESERVE BALANCES

1930 1931 1932 1933 1934 1935 1936Latest figures for December 23, 1936. See table on page 42.



SUMMARY OF FINANCIAL AND BUSINESS STATISTICS

1936 1935

Nov. Oct. Sept. Nov. Oct. Sept.

Annual averages

1929 1932 1933 1934 1935

RESERVE BANK CREDIT, MEMBER BANK RESERVES,AND RELATED ITEMS

Reserve bank credittotalBills discountedBills boughtU. S. Government securities

Monetary gold stockTreasury currencyMoney in circulationTreasury cash and deposits with Federal Reserve banksNonmember deposits and other accountsMember bank reserve balances:

TotalExcess

REPORTING MEMBER BANKS

Total loans and investments.Loans to brokers in New York CityOther loans on securitiesAll other loansU. S. Government obligations:

DirectFully guaranteed

Other securities _Reserve with Federal Reserve banksCash in vaultBalances with domestic banksDemand depositsadjustedTime deposits (excluding interbank)*Deposits of domestic banks3Borrowings

MONEY RATES AND BOND YIELDS

Commercial paperStock exchange call loansU. S. Treasury billsU. S. Treasury bonds, long termCorporate high grade bonds (Moody's Aaa)

CAPITAL ISSUES

All issuestotal _ __.NewRefunding

Domestic corporate issuestotal-NewRefunding

Common stocks (1926=100)Wholesale commodity prices (1926=100):

All commoditiesFarm productsFoodsOther commodities

Retail food prices (1923-25=100)BUSINESS INDEXES

Industrial production..ManufacturesMinerals

Constructiontotal.Residential.All other.._

Factory employment4Factory payrolls (unadjusted)4Freight-car loadings. _Department store sales _.

MERCHANDISE EXPORTS AND IMPORTS

Exports, including re-exports..General imports

Averages of daily figures; in millions of dollars47263

2,4301,1162, 5176,4012,459461

6,7852,219

2,48073

2,43010,9832,5126, 3212, 559502

6, 5942,043

2,47983

2,43010,7642, 5076,2582,619528

6, 3451,852

2,48275

2,4309,7772,4105,7702, 630512

5, 7573, 061

2,48285

2, 4309, 5452, 3985,7042, 693560

5, 4692,820

2,480105

2,4309,2462,3895,6512,734488

5, 2432,628

1,459952241208

3,9962,0154,476229406

2,35843

2,07752171

1,4613,9522,0965, 328275407

2,114256

2,42928383

2,0524,0592,2715,576343497

2,343528

2,5023625

2,4327,5122,3815,4032, 879438

3,6761, 564

Averages of Wednesday figures; in millions of dollars12, 444

9412, 2395, 575

9,2321, 2553, 2025,422404

2, 4635, 3625, 0326,236

1

22, 566945

2,2435, 530

9,3101,2553,2835,276399

2,38515, 1525,0706,080

1

22, 520983

2,2475,398

9, 3201,2463,3264,995383

2,31114,9625,0365, 890

15

20,510820

2,2424, 968

8,2911,1383,0514,715354

2, 32613,7794,8835, 400

1

20,355800

2,2374,926

8,1561,1143,1224,435339

2, 25313,3594,9175,244

1

20,187844

2,2284,857

8,0451,0943,1194, 251336

2,21213,2834, 8535,116

10

22, 5991,4056,2519,231

2,865

2,8471, 725248

1,1420)

6, 7882,787674

19, 080337

4, 5086,578

4,413

3,2451, 673214

1, 2500)

5, 6662,772228

17, 505591

3,3435,222

5,228

3,1211,822240

1,3220)

4,9462,822115

18, 672815

2,7114,965

6, 856fc325

3,0002,875271

1,6880)

4,9373,814

8

Averages of weekly figures; percent per annum

1.00.10

2. 293.15

.751.00

.132.423.18

.751.00

.162.413.18

.75

.75

.142.73

'3.47

.202.773.52

.75

.25

.222.783.59

5.857.613.604.73

2.732.053.655.01

1.721.16

.523.314.49

1.021.00

.263.104.00

Amounts per month; in millions of dollars349156192239109130

Index numbers124

8285848183

Index numbers, adjusted for seasonal variation, 1923-25=100P114?114P110P58^40P72

Amounts per month; in millions of dollars265212

220216

270169

221189

199162

437367

134110

140121

178138

190171

2,47575

2,4319,0592,4785, 5852,919507

5,0012,469

19,997820

2,3014,907

7,989928

3,0524,024

3262,11212,7294,8834,938

.76

.56

.142.703.60

'46318727636695272

40917923025075175

38011626425133217

36214521725273179

43617725927645231

959841118781667115

14610046542727

896029321318

18011664411526

12426518934155

119

8284838083

114

8284838084

93

8178857982

85

8178857880

85

8180867880

190

9510510092105

48

6548617068

63

6651617166

72

7565717874

78

8079847880

11011010457436994897390

10911010159476994837288

969792f;0268888766682

95959348256687766478

91928743255886746281

11911911511787142105109106111

64637128134066475669

76758225113772495867

79788632124882636275

90909137215086716379

p Preliminary. * Partly estimated. r Revisedi Figures not available. * Include time deposits of banks, domestic and foreign, 1929-1934.4 Revised series. See pages 950-978 of the BULLETIN for December 1936.

3 Do not include time deposits 1929-1934.


JANUARY 1937 FEDERAL RESERVE BULLETIN 11

LAW DEPARTMENTEffective date of definition of interest in section l ( f )

of Regulation Q

During the latter part of 1935, the Boardof Governors of the Federal Reserve Systemrevised its Regulation Q relating to the pay-ment by member banks of interest on de-posits, and the regulation in its revised formwas made effective January 1, 1936. How-ever, the definition of interest in subsection(f) of section 1 of such revision of Regula-tion Q was not made effective on January 1,1936, but the date on which the subsectionshould become effective was deferred untilfurther action of the Board of Governors. Anotice of such deferment was published atpage 48 of the FEDERAL RESERVE BULLETINfor January, 1936.

During the past year the Board of Gov-ernors has given exhaustive considerationto this subject, and, as a result of this con-sideration, has taken action fixing February1, 1937, as the date on which subsection (f)of section 1 of Regulation Q shall becomeeffective. This subsection which containsthe definition of interest and which is quotedbelow will become effective on February 1,1937, in the same form as that contained insubsection (f) of section 1 of the revision ofRegulation Q published at page 862 of theFEDERAL RESERVE BULLETIN for December,1935, all of the other provisions of whichbecame effective on January 1, 1936. Thesubsection reads as follows:

"The term 'interest' means a payment,credit, service or other thing of value whichis made or furnished by a bank as considera-tion for the use of the funds constituting a

deposit and which involves the payment orabsorption by the bank of out-of-pocket ex-penses (i.e., expenses arising out of specifictransactions for specific customers and defi-nitely attributable to such transactions asdistinguished from overhead and generaloperating expenses), regardless of whethersuch payment, credit, service or other thingof value varies with or bears a substantiallydirect relation to the amount of the deposi-tor's balance.

"The term 'interest' includes the paymentor absorption of exchange and collectioncharges which involve out-of-pocket ex-penses, but does not include the payment orabsorption of taxes upon deposits whetherlevied against the bank or the depositor northe payment or absorption of premiums onbonds securing deposits where such bondsare required by or under authority of law.

"Notwithstanding the foregoing, the pay-ment or absorption of isolated items of out-of-pocket expense in trivial amounts and notof a regularly recurrent nature, where thecharging of such items to customers wouldcause undue friction or misunderstanding,will not be deemed to be a payment of inter-est, provided that the bank acts in good faithand does not utilize the absorption of suchitems as a basis for soliciting accounts orobtaining an advantage over competitors andprovided further that the bank maintains andmakes available to the examiners authorizedto examine the bank a record showing theamounts of such items paid or absorbed by it,the dates of such payment or absorption, andthe names of the customers for whom suchitems were paid or absorbed."



INSURANCE OF DEPOSITSThe Federal Deposit Insurance Corpora-

tion has published the results of a surveyshowing for different size groups and classi-fications of deposits and for different sizegroups and types of banks the number anddollar amount of deposits in insured banksand the number and dollar amount of depositswholly protected by insurance as of May 13,1936. The full text of the report, togetherwith statistical tables, is as follows:

The Federal Deposit Insurance Corpora-tion on May 13, 1936, insured deposits in14,092 commercial banks in the United Statesand its possessions, more than 92 percent ofthe 15,194 commercial banks in operation onthat date. The percent of operating com-mercial banks in each State insured by theCorporation varied from 100 percent in Ari-zona, District of Columbia, Utah, Vermontand Wyoming to less than 70 percent in Kan-sas and Rhode Island.

On May 13, 1936, insured commercialbanks reported a total of 57 million accounts,of which 56 million, or 98.4 percent, were ac-counts with balances not exceeding $5,000,the maximum insurance for each depositor.Deposits in these banks amounted to $45billion, of which $19.5 billion, or 43 percent,were insured. On October 1, 1934, total de-posits of 14,060 insured commercial banksamounted to $36 billion, of which $15.6 bil-lion, or 43.5 percent, were insured.

Figures for May 13, 1936, showed that in-surance protection varied widely amongbanks, the coverage being affected by size ofbank, type of bank, and type of deposit.

Insurance coverage was highest in smallbanks and lowest in large banks. Deposits inbanks with total deposits not in excess of

INSURANCE COVERAGE BY SIZE OF BANK, INSUREDCOMMERCIAL BANKS, MAY 13, 1936

All banks

B a n k s wi th deposits of:$100,000 and under$100,000 to $250,000$250,000 to $500,000$500,000 to $1,000,000...$1,000,000 to $2,000,000.$2,000,000 to $5,000,000.$5,000,000 to $50,000,000Over $50,000,000

Numberof

banks

14.085

9173. 0283, 3002.7511.9261. 282

772109

Amount of deposits(in millions of dollars)

Total

45 188

64527

1.1901,9502, 7033, 8809, 980

24, 894

Insured

19 578

61476

1,0291.6022. 1112, 8005.2150. 284

Percentof

depositsinsured

43

9590868278725225

$100,000 each were 95 percent insured. In13,204 banks with deposits of not more than$5,000,000 each, comprising 93 percent of thetotal number of insured commercial banks,the insurance coverage was about 78 percent.In 772 banks, each with deposits of between$5,000,000 and $50,000,000 about 52 percentof the deposits were insured. In 109 bankswith deposits of over $50,000,000 each, ap-proximately 25 percent of the deposits wereinsured. These 109 banks held more thanone-half of total deposits and almost one-thirdof insured deposits of all insured commercialbanks.INSURANCE COVERAGE BY TYPE OF DEPOSIT, INSURED

COMMERCIAL BANKS, MAY 13, 1936

Type of deposit

TotalDeposits of individuals,

partnerships and cor-porations:

DemandSavings and time

InterbankPublic funds of States

and political subdivi-sions

U. S. Government andpostal savings

Uninvested trust funds_.DraftsOther items

Numberof

accounts(in thou-sands)

57, 398

22, 10632, 563

93

244

14516469

1, 393

A m o u n t of deposits(in mill ions of dollars)

T o t

45

19126

3

11

al

188

737559315

360

165150318584

Insured

19, 578

7. 62010, 351

379

422

37343167259

Percentof

depositsinsured

3882

6

3305244

Insurance coverage varied also accordingto the type of bank. Banks operating branchesor additional offices reported a higher propor-tion of insured deposits than did unit bankswith the same volume of total deposts. Thedeposits of insured mutual savings bankswere 89 percent protected, approximately thesame protection as was reported for savingsdeposits in commercial banks of similar size.

Insurance coverage varied also accordingto the type of deposit. The general publicheld demand and time deposits amounting to$32 billion. More than 95 percent of bankaccounts were of this type. These depositswere 55 percent insured. Other deposits con-sisting chiefly of deposits of other banks andof governmental bodies amounted to $13 bil-lion and were 12 percent insured.

Demand deposits of individuals, partner-ships and corporations in all insured bankswere 38 percent insured. In the 13,204 banksreporting deposits not in excess of $5,000,000each, demand deposits were 81 percent in-



sured. Of the 22 million accounts of thistype, more than 98 percent contained bal-ances not exceeding $5,000, the maximum in-surance for each depositor. Savings and timeNUMBER AND DEPOSITS OF COMMERCIAL BANKS IN THE

UNITED STATES AND POSSESSIONS, MAY 13, 1936[Deposits in thousands of dollars]

United States andpossessions total i

StatestotalAlabamaArizonaArkansasCaliforniaColoradoConnecticut. __DelawareDistrict of Co-

lumbiaFloridaGeorgiaIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusetts-.MichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth Carolina-North Dakota. _OhioOklahomaOregonPennsylvania. _.Rhode Island.__South Carolina-South Dakota...TennesseeTexasUtahVermontVirginiaWashingtonWest Virginia...WisconsinWyoming

Possessionstotal

Insured banks Noninsured banks

Num-ber

14, 08514, 081

20715

21323913910544

22149261

5786349658546338914861

184198446649196635120377

956

3884076523419269238590

1,084161111963078085976323172172586594

Deposits

Total Insured

45,187, 90245,182, 497

242,38973, 282147,411

3, 733,043297, 421468, 346123, 867

323, 645319, 056390, 48575,084

3, 665,195718,915549, 519325, 213401, 545387,557180, 372527, 293

1, 810, 0071,229,422794, 906151,481

1,320,243124,092310,45126, 93274, 093

1,543,91747, 461

13, 072, 910359, 06670, 606

1,974, 947413, 543255, 585

4, 377, 329230,197123,35785,419435, 756

1, 164, 546147, 075100,807513,310385, 464257, 818774,13657, 9835,405

19, 577, 57719, 573, 600

144,96644, 37593, 206

1, 964, 055160,984253, 76762, 607

172,254159, 956193,91151,860

1, 401, 733420, 347367,471203, 223260, 778179,126132,211249, 870708, 074666,356463, 271108, 583560, 15380, 568184,32718,06049, 427

1,008,74729,054

2,881,634183, 88757, 227

1,127,153199, 493159, 645

2, 044, 645126, 46274, 75162, 654229, 676576, 96276, 72485, 976335, 849217,061176,879525, 27638, 3263, 977

Num-ber

1,1021,075

10

91015202

64521,5362,161

69, 393259

560

3194276

26044

21034

28381049

159

1971

251

122118

133

739

110

Deposits

1, 449, 5381, 336, 524

1,906

2,8924,9236,4689,52913,13132, 07955, 93111,798

39118,63447,07249, 82143,93410, 2222,9987,244222

10,411223

6,37030, 791

492698,4704,1211,4055, 3502, 806

6149, 58463,1308,137606

2. 40671

381018

18, 666

8294,8256, 0388, 614

113,014

1 The number of operating insured commercial banks is 14,092. The

reports of 7 insured banks are not included. Deposit figures of nonin-sured banks are for nearest available date, predominantly June 30, 1936.Deposit figures for 40 noninsured banks are not included.

deposits of individuals, partnerships and cor-porations were 82 percent insured. Accountsof this type numbered more than 32.5 million,of which 99 percent contained balances notexceeding $5,000.

Interbank deposits amounted to $6 billionand were only 6 percent insured. Of thesedeposits, nearly half were in banks in NewYork. Since these deposits are held only forthe account of banks, the low coverage in thisclass of deposit does not indicate lower insur-ance protection for the general public. Thesuspension of a bank with a large volume ofinterbank deposits, however, seriously affectsthe solvency of its correspondent banks. Inthese latter banks, the Federal Deposit Insur-ance Corporation protects a large proportionof the deposits and in the event of their fail-ure would be called upon to make substantialpayments to their depositors.

Insurance protection given to United StatesGovernment and postal savings depositsamounted to only 3 percent of the more than$1 billion of such deposits, but these accountswere fully protected by the pledge of securityand by legal preferment. Public funds ofStates and political subdivisions amountingto more than $3 billion, were about 12 per-cent insured and uninvested trust funds,amounting to $1 billion, were about 30 per-cent insured. In addition, however, a sub-stantial proportion of these deposits wassecured by the pledge of collateral or waspreferred. Outstanding drafts and othermiscellaneous items amounted to less than $1billion, of which about 45 percent were pro-tected by insurance.

The percent of total deposits insured in thevarious States ranged from 85 percent inVermont to 22 percent in New York State.The low coverage in New York, Massachu-setts, Illinois and several other States wasdue to the concentration of deposits in a fewlarge banks holding large proportions of in-terbank deposits, United States Governmentand other public funds, and uninvested trustfunds. The percent of accounts with bal-ances of $5,000 or less ranged from 99.2 per-cent in North and South Dakota and WestVirginia to 97 percent in New York.

The protection given to the general publicby Federal insurance of deposits is measuredby the amount of demand, savings and timedeposits of individuals, partnerships and cor-porations, covered by insurance. In the coun-try as a whole, these deposits were about 55percent insured. The proportion of depositsof individuals, partnerships and corporationsprotected by insurance ranged from 88 per-cent in North Dakota and Vermont to 30 per-cent in New York.



In the 70 insured banks which were placedin receivership up to October 31, 1936, eachof the 84,687 depositors was insured up to amaximum of $5,000. Insurance fully pro-tected 84,253 or 99.5 percent of the deposi-tors. In addition 25 depositors were fullyprotected by pledge of collateral or by theholding of preferred claims.

Total deposits in these 70 banks amountedto $19.6 million, of which 72 percent were in-sured and 14 percent were protected bypledge of security, by counterclaims, or bypreferred claims. Depositors holding the re-

maining 14 percent of deposits and the Cor-poration receive proportionate shares of theproceeds of the liquidation of the assets ofthe banks.

NOTE : In order to lessen the work to be done by insured banksin making the report on May 13, 1936, banks were asked to re-port on a basis of balances in each account without combiningaccounts standing to the credit of a depositor in the same rightand capacity. Banks reported the volume of deposits in accountsof $5,000 and under and the first $5,000 in accounts exceedingthat amount instead of amounts standing to the credit of eachdepositor in the same right and capacity. To simplify presen-tation, figures used throughout are those reported. Tests showedthat failure to combine accounts caused a relatively small error.This treatment overstates the amount of insured deposits by lessthan 1 percent of total deposits for the country as a whole. Thenumber of accounts is greater than the number of depositors.

MONETARY LEGISLATION IN CZECHOSLOVAKIA AND RUMANIA

The Czechoslovak Parliament enacted leg-islation on October 9, 1936, effective October10, providing for reduction of the gold con-tent of the crown by not less than 13.30 per-cent nor more than 18.68 percent, for re-valuation of the gold and foreign exchangeholdings of the National Bank, and for crea-tion of a stabilization fund from the proceedsof revaluation. A brief summary of thismeasure was given in the BULLETIN for No-vember 1936, p. 852. Full texts of the lawand of a decree fixing the gold content of thecrown are given below. The decree fixes thevalue of the crown at 31.21 milligrams of finegold, midway between the upper and lowerlimits established by the law. The gold con-tent of the Czechoslovak crown was pre-viously reduced in February 1934 from 44.58milligrams of fine gold to 37.15 milligrams,a reduction of 16% percent.1

By Royal decree of November 6, 1936, theRumanian Government provided for revalua-tion of the gold holdings of the National Bankof Rumania and for allocation of the resultingincrement in accordance with a conventionbetween the Bank and the Government. SinceJune 1, 1936, the National Bank of Rumaniahas been permitted to buy gold at a premiumof 38 percent above the price fixed by themonetary law of February 7, 1929.2 The au-thorization was granted by the Council ofMinisters on June 26, 1936, with retroactiveeffect as from June 1. There has been nochange in the legal gold content of the leu,which was fixed at 10 milligrams of gold .900fine by the law of February 7,1929. Transla-tions of the Royal decree and two conventionsof November 6, 1936, are given below.

1 See BULLETIN for May 1934, p. 288.

2 See BULLETIN for March 1929, p. 201.

Czechoslovak legislationACT OF PARLIAMENT OF 9TH OCTOBER 19363

(No. 262 in the Collection of Laws and Decrees)concerning a readjustment of Czechoslovak

currencyThe National Assembly of the Czecho-

slovak Republic has passed the following law:Article 1. (1) The Czechoslavak crown(Kc) as the monetary unit of the Czecho-

slovak Republic is hereby fixed at not lessthan 30.21 and not more than 32.21 milli-grams of fine gold.

(2) The Government is empowered to fixby decree within the above limits the precisevalue of the Czechoslovak crown in relationto gold.(3) The National Bank of Czechoslovakiais under the obligation of maintaining the ex-change rate of the Czechoslovak crown at alevel answering to the provisions of sees. 1and 2.

(4) This measure replaces the legal pro-visions hitherto in force expressing the valueof the Czechoslovak crown in relation to gold.

(5) The Czechoslovak crown as fixed ac-cording to sees. 1 and 2 takes the place of thehitherto existing monetary unit, in all legalrelations into which the Czechoslovak crownenters, in the proportion of 1:1.

Art. 2. The gross weight of gold coin willbe fixed by Government Decree.

Art. 3. The amount of the appreciation in thevalue of the reserves of gold and foreign cur-rency at the National Bank of Czechoslovakia,which shall be ascertained after deducting theliabilities of the Bank in gold and foreign cur-

3 The English texts given herewith are those published in a

supplement to the Bulletin of the National Bank of Czecho-slovakia for October 1936.



rency, shall be calculated, according to theposition obtaining on the day upon which thislaw takes effect, provisionally on the basis ofthe upper limit referred to in article 1, sec. 1,and is the property of the State. It will bekept at the National Bank of Czechoslovakiaas a standing deposit for the purpose of en-abling the National Bank to fulfil the dutylaid upon it in article 1. Details regardingthe booking and administering of this depositwill be fixed by a special agreement betweenthe State and the National Bank of Czecho-slovakia.

Art. 4. Gold which is subject to compul-sory registration and surrender under theterms of the Government Decree of the 10thSeptember 1934 (No. 202 in the Collection ofLaws and Decrees) concerning the registra-tion and compulsory offer of foreign legaltender, of claims against foreign countries, ofprecious metals and securities, as laid down inthe Government Decree of 7th December 1934(No. 242 in the Collection of Laws and De-crees) will be taken over by the NationalBank of Czechoslovakia at a price corre-sponding to the value of the Czechoslovakcrown prior to the coming of this law intoforce.

Art. 5. This law amends the Regulations ofthe Standing Committee of 7th November1929 (No. 166 in the Collection of Laws andDecrees) and the Act of 17th February 1934(No. 25 in the Collection of Laws and De-crees).4

Art. 6. This law becomes effective on theday of promulgation, and will be carried outby the Minister of Finance.

GOVERNMENT DECREE OF 9TH OCTOBER 1936(No. 263 in the Collection of Laws and Decrees)

fixing the precise value of the Czechoslovakcrown in relation to gold

The Government of the Czechoslovak Re-public, in accordance with article 1, sec. 2 ofthe Act of Parliament of 9th October 1936(No. 262 in the Collection of Laws and De-crees) concerning a readjustment of Czecho-slovak currency, decrees as follows:

Article 1. The value of the Czechoslovakcrown is fixed at 31.21 milligrams of finegold.

Art. 2. This Decree becomes effective onthe day of promulgation, and will be carriedout by the Minister of Finance.

4 Se BULLETINS for December 1929, pp. 797-798, and May 1934

p. 288.

Rumanian legislationROYAL DECREE NO. 2504 OF NOVEMBER 6,

1936, CONCERNING THE REVALUATION OFTHE METALLIC STOCK OF THE NATIONALBANK OF RUMANIACharles II, by the grace of God and the will

of the nation, King of Rumania,To all to whom these presents shall come,

greetings:By virtue of the report of Our Minister

Secretary of State to the Department of Fi-nance No. 252,224 of November 6,1936,

By virtue of the minutes of the Council ofMinisters No. 2,376, drawn up at its sessionof November 6,1936,

We have decreed and do decree:Article I. By authority of the minute of the

Council of Ministers No. 1228, published inthe Moniteur Officiel No. 147 of June 27,1936,the National Bank of Rumania pays at pres-ent for each kilogram of fine gold, over andabove the price of 111,111.11 fixed by themonetary law of February 7,1929, a premiumof 38 percent, making a total of 153,333.33lei for each kilogram of fine gold.

Accordingly, the National Bank of Ru-mania shall value and enter the gold bullionand coin included among its assets, and thatwhich it may acquire in future, at the priceindicated above, 153,333.33 lei for each kilo-gram of fine gold.

Art. II. The increment which shall resultfrom the revaluation of the cover (couver-ture), shall be credited to the account of thePublic Treasury, in accordance with a conven-tion between the State and the National Bank,which convention shall establish the mannerof use of this increment.

Art. III. The net increment which shallaccrue to the State under the above provi-sions, shall not be used for ordinary budgetexpenditures but only for exceptional mili-tary requirements.

Art. IV. Exchange transactions, as well asthose in precious metals, continue subject tothe legal provisions now in effect.

Art. V. The provisions of the present de-cree shall become effective from the date ofpublication in the Moniteur Officiel.5

Art. VI. Our Minister Secretary of Statefor the Department of Finance is chargedwith the execution of this decree.

Given at Bucarest, November 6, 1936.5 Published in the Moniteur Officiel No. 260 of November 7,

1936.



CONVENTIONS BETWEEN THE RUMANIANSTATE AND THE NATIONAL BANK OFRUMANIA

FIRST CONVENTIONBetween the Rumanian State, represented

by the Minister of Finance, Monsieur M. Can-cicov, on the one part, and the National Bankof Rumania on the other part, represented bythe Governor, Monsieur M. Constantinescu,acting under the authority granted by theAdministrative Council of the said institu-tion, at its session of November 6, 1936, thefollowing convention is adopted:

"The increment resulting from the revalua-tion of the gold stock held at the NationalBank of Rumania, November 6, 1936, shall beutilized in accordance with art. 2 of the RoyalDecree No. 2,504, published in the MoniteurOfficiel No. 260 of November 7, 1936, as fol-lows:

"(a) The sum of 220,506,179 lei shall beused to reimburse the N. B. R. for the pre-miums paid by it for gold bought;

"(b) The sum of 1,817,919 shall be used topay the interest of 5 percent on the advance of15 millions of French francs granted by the'Steaua Romana' and utilized for the for-eign payments of the State;

"(c) A sum up to 275,000,000 lei is al-located to cover the differences resulting fromthe devaluation of foreign currencies. Theunused balance, after the final accounting hasbeen made, shall automatically accrue to theTreasury.

" (d) With the sum of 100,000,000 lei a fundis established at the disposal of the N. B. R.to cover the expenses connected with trans-actions in and control of exchange. The un-used portion of this fund shall be turned backto the Public Treasury;

"(e) The sum of 347,091,906 lei shall becredited to a separate account set aside tocover the premium of 38 percent on the un-paid balance of the credit negotiated by theN. B. R. in 1931 at the Bank of France andutilized for the transfer of foreign paymentsof the State.

" (f) The balance of the net increment shallbe credited to the State and shall be devotedexclusively to meeting the necessary expendi-tures for military requirements."

SECOND CONVENTIONBetween the Rumanian State, represented

by the Minister of Finance, Monsieur M. Can-cicov, on the one part, and the National Bankof Rumania on the other part, represented bythe Governor, Monsieur M. Constantinescu,acting under the authority granted by theAdministrative Council of the said institu-tion, at its session of November 6, 1936, thefollowing convention is adopted :

'The Public Treasury shall reimburse theNational Bank of Rumania to the amount of 2billions of lei to extinguish the temporary ad-vance, granted to the State by this institution,in accordance with art. 34, paragraph 4 ofits statutes."



STATISTICS OF INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITEDSTATES

Statistics of international capital transac-tions of the United States from the begin-ning of 1935 to September 30, 1936, werepublished by the Treasury on November 27,1936, and will continue to be publishedquarterly.1 These statistics are reported ona weekly basis by banks and brokers in theUnited States.2 Most of the internationalcapital transactions of this country appear tohave been handled by these reporting institu-tions. Reports received from other sources,such as the larger exporters, importers, andcommercial and industrial concerns, indicatethat the net movement of capital throughthese agencies has been comparatively small.There are, however, unreported capital move-ments which may at some periods have beenfairly substantial.

In order that the figures relative to inter-national capital transactions may be readilyavailable to readers of the FEDERAL RESERVEBULLETIN, they are presented at the close ofthis article in summary form. The first tableshows the total capital movement as reportedby banks and brokers. The five major formswhich this movement has taken are alsoshown in the first table. Each of the sixcolumns is then made the subject of a suc-ceeding table in which the data are classifiedaccording to leading countries and areas.In addition to these seven tables, tables 8 and9 show the outstanding assets and liabilitiesfrom which the figures of the movement ofbanking funds are derived. Only short-termbalances reported by banks are shown. Out-standing balances reported by brokers are oflittle importance and figures on outstandingsecurity holdings are not collected for theTreasury. Four charts showing the capitalmovement to the United States and its prin-cipal components are presented on pages38 and 39.

The movement of capital between theUnited States and foreign countries consti-tutes a major element in the balance of inter-national payments of the United States. Inrecent years it has been the factor chieflyresponsible for the gold flow to the United

1 See document entitled "Statistics of capital movements be-

tween the United States and foreign countries and of purchasesand sales of foreign exchange in the United States, January1935 through September 1936."

- The figures are reported to the Federal Reserve banks pur-suant to the Executive Order of January 15, 1934 (BULLETIN forFebruary 1934, pp. 78-79), and the Treasury Regulation of No-vember 12, 1934 (BULLETIN for December 1934, p. 780).

States and the growth of excess reserves inmember banks of the Federal Reserve Sys-tem. International capital movements havebeen discussed in several issues of the FED-ERAL RESERVE BULLETIN on the basis of thefigures published at the end of this article.Such discussions occurred in the Bulletinsfor October and December 1935 and for May,July, and December 1936.

DETAILED DESCRIPTION OF THE STATISTICSSince the international movement of capital

consists of transfers of ownership of bal-ances, securities, properties, and other claimsbetween the United States and foreign coun-tries, the distinction between domestic enti-ties and foreign entities must be preciselyindicated. Banking institutions, securitydealers, other concerns, and persons are re-garded as domestic, whatever their nation-ality, if domiciled within the United States.Conversely, banking institutions, securitydealers, other concerns, and persons are re-garded as foreign, whatever their nationality,if domiciled outside the United States. Thus,the branches in the United States of foreignbanking institutions are regarded as domes-tic, while foreign branches of domestic bank-ing institutions are regarded as foreign.

Not every transfer of ownership betweenAmericans and foreigners, however, involvesan international exchange transaction. Aforeign buyer of American securities withfunds on deposit at an American bank, forinstance, may use these funds to pay for thesecurities purchased; or, not having suchfunds, may borrow from an American bankor broker. Thus, the recorded inflow of capi-tal represented by the security transactionwould be offset by a recorded outflow of capi-tal reflected, in the first case, in a decrease inAmerican deposit liabilities to foreigners;and, in the second case, in an increase in theforeign assets of an American bank or broker.No foreign exchange transaction would haveoccurred, since what appear in the recordedfigures as two separate operations are reallytwo offsetting aspects of a single operation,transacted wholly in dollars. The net figures,which would show no movement of capital,would report this fact correctly.

The following paragraphs describe in de-tail the source and nature of the figures in



the various tables. The figures in the firstcolumn of table 1, and in table 2, representthe summation of the several componentsdescribed below.

Banking funds (table 1, second column,and table 3).The term banking funds ishere used to cover short-term liabilities toforeigners reported by banks in the UnitedStates, and short-term claims on foreignersreported by such banks. The reports alsocover accounts of clients so far as these arehandled by the banks. The figures discussedhere relate only to the net movement of capi-tal to the United States represented bychanges in these liabilities and assets. Fig-ures of the outstanding amounts of liabilitiesand assets are presented in tables 8 and 9, andthe source and nature of these figures aredescribed more fully in connection with thosetables.

The net movement of capital to the UnitedStates in banking funds represents the cumu-lated sum of (a) increases in liabilities to for-eigners (table 8) and (b) decreases in for-eign assets (table 9), reported by banks inthe United States. Decreases in liabilitiesand increases in assets constitute outwardmovements of capital and reduce the cumula-tive inward movement. The extent to which,for any given period, the net movement inbanking funds represents (a) an increasein liabilities to foreigners, as opposed to (b)a decrease in assets held abroad, may readilybe derived from the figures in tables 8 and 9.

Brokerage balances (table 1, third column,and table 4).The term brokerage balancesis here used to cover balances due from for-eigners to reporting brokers and dealers insecurities domiciled in the United States, andbalances due to foreigners by such brokersand dealers. Total brokerage balances duefrom foreigners include both debit balancesin foreign accounts with domestic brokersand dealers (reflecting funds borrowed byforeigners, presumably for the purchase ofsecurities), and funds held abroad in the formof balances with foreign banks and brokers.Total brokerage balances due to foreignersinclude both credit balances in foreign ac-counts with domestic brokers and dealers, andoverdrafts carried abroad by such brokersand dealers.

The net movement of capital to the UnitedStates in brokerage balances represents thecumulated sum of (a) increases in balancesdue to foreigners by security brokers anddealers in the United States and (b) de-

creases in balances due from foreigners tosuch brokers and dealers. Decreases in (a)and increases in (b) constitute outwardmovements of capital and reduce the cumula-tive inward movement. A net outward move-ment of capital in brokerage balances hasusually indicated that foreigners have boughtsecurities on margin in the United States.

Outstanding amounts of brokerage bal-ances, both due to and due from foreigners,are not large and the figures are not publishedwith this article, although they are availablein the Treasury bulletin of November 27.Brokerage balances outstanding at the begin-ning and end of the period covered, and forthe intermediate dates on which the cumula-tive net inward and net outward movementsof capital in brokerage balances were largest,are given below.

TOTAL BROKERAGE BALANCES OUTSTANDING

Jan.OptFebSept

2, 19359, 193519, 1936. . .

. 30, 1935

[In millions of dollars]

Due toforeigners

17.022.321.936.6

Due fromforeigners

94.268.7102.390.6

Since changes in brokerage balances areclosely related to security transactions, it ap-pears desirable, for most purposes, to con-sider them as part of the net movement ofcapital in security transactions.3

Total securities (table 1, fourth column,and table 5).The net movement of capitalto the United States in security transactionsrepresents the cumulated net purchases ofboth domestic and foreign securities fromAmericans by foreigners, i.e., total foreignpurchases minus total foreign sales, as re-ported by banks, bankers, brokers and deal-ers in the United States. The reports cover(a) transactions executed in the UnitedStates for foreign account, or on behalf ofa domestic trustee or nominee known to beacting for foreign account; (b) transactionsexecuted in foreign countries for account ofreporting institutions in the United Statesor their domestic clients;4 (c) transactionsexecuted for joint foreign arbitrage account,

3 See first chart, p. 38, and note.4 In general, transactions executed abroad otherwise than

through the intermediary of a regularly reporting agency are notreported, though certain special transactions reported directly byindustrial concerns are included.



as reported by brokers and dealers in theUnited States who participate as principalsin security arbitrage accounts jointly withbrokers and dealers domiciled abroad.

The basic figures represent the total amountof money debited or credited (to either for-eign or domestic account), i.e., the cost ofpurchases plus commissions, tax, etc., or theproceeds of sales less commissions, tax, etc.When security purchases in the United Statesare partially financed by funds borrowed inthis country, the full cost of the purchase isincluded in the security figures and the fundsborrowed are reported by the lending bankor broker; and conversely when such securi-ties are sold and the indebtedness is repaid.

Domestic securities (table 1, fifth column,and table 6).The net movement of capitalto the United States in security transactionsduring the period covered by the figures hasrepresented principally net foreign purchasesof domestic securities. The term "domesticsecurities" is used to designate securities ofthe United States Government, States, andmunicipalities, and of corporations charteredin the United States, except that changes inforeign holdings of United States Treasurybills and certificates are largely reflected inthe figures in table 8 (see below) and are notincluded in the figures of transactions indomestic securities.

Foreign securities (table 1, sixth column,and table 7).The other component of thenet movement of capital to the United Statesin security transactions represents net for-eign purchases of foreign securities. Theterm "foreign securities" covers the securi-ties of foreign governments and political sub-divisions, and of corporations chartered inforeign countries, except that changes inAmerican holdings of foreign governmentsecurities maturing within one year of thedate of issue are largely reflected in thefigures in table 9 (see below), and are notincluded in the figures of transactions in for-eign securities. Foreign purchases of foreignsecurities include, in addition to ordinary in-vestments, two special types of transaction:(1) the amounts of called or matured foreignsecurities redeemed in the United States, and(2) sinking fund purchases of foreign securi-ties in the United States. New foreign se-curity issues in the United States are includedin the figure of foreign sales of foreign securi-ties, and foreign subscriptions to such issueiare also reported as foreign purchases.

Short-term foreign liabilities (table 8) andassets (table 9) reported by banks in UnitedStates.The figures in tables 8 and 9 repre-sent, respectively, the short-term 5 indebted-ness to, or claims on, governments, banks,oncerns, and individuals domiciled abroad,

recorded on the books of banks and bankersin the United States. These figures are de-rived from weekly reports furnished by banksand bankers performing foreign bankingoperations, including domestically ownedcommercial banks and trust companies, pri-vate banks, domestic branches and agenciesof foreign banks, and the Federal Reservebanks. The reports cover not only the re-porting banks' own short-term liabilities toforeigners, but also short-term obligationsheld for foreign account which representclaims on institutions, firms, and individualsin the United States. Thus, for example,United States Treasury bills and certificatesand commercial bills drawn on Americanfirms are reported as liabilities to foreignersif held for foreign account by reporting banksand bankers. Similarly, the reports covershort-term claims on foreigners of domesticclients as well as those of the reporting banks.Thus, deposits maintained abroad, or billssent abroad for collection, for account ofdomestic clients, are included in the figuresof foreign assets. The reports show short-term liabilities to, or claims on, all concernsand individuals, whatever their nationality,domiciled outside the United States, includingforeign branches, subsidiaries, or affiliatesof domestic banks and other concerns.

In considering the scope of the figures pre-sented in tables 8 and 9 it should be recog-nized that, although they are believed to coverthe most important portion of this country'sshort-term foreign liabilities and assets, thereare several classes of liabilities and assetsthat are not reflected in the records of domes-tic banks and bankers, and, consequently, donot enter their figures. Three such classesnot included in the figures in tables 8 and 9are: (1) the short-term foreign liabilities andassets on open account of commercial, indus-trial, and other concerns domiciled in theUnited States; (2) the foreign debit andcredit balances of security brokers and deal-ers in the United States; and (3) foreignholdings of United States currency. Al-though reports are received from commercial,

liclyeven when they come within one year of maturity.



industrial, and other concerns, publication ofthe figures has been postponed, owing to cer-tain statistical inadequacies, until necessaryimprovements have been developed. The netmovement of capital in brokerage balances isgiven in table 4, however, and some idea ofthe net change in foreign holdings of UnitedStates currency may be obtained from figurespublished monthly in the FEDERAL RESERVEBULLETIN and annually by the Department ofCommerce in The Balance of InternationalPayments of the United States.

The detailed classification of foreign lia-bilities and assets, as reported by banks andbankers and as published in the Treasurybulletin of November 27, is as follows:Short-Term Foreign Liabilities

Payable in dollars1. Deposits for foreign account

2. Loans to brokers and dealers in securities forforeign account

3. Bills held for foreign account4. Short-term United States Government obliga-

tions held for foreign account5. Allother

Payable in foreign currencies6. Borrowings from foreign banks7. Acceptances made by foreign banks8. All other

Short-Term Foreign AssetsPayable in foreign currencies

1. Banks' own deposits abroad2. Deposits abroad for account of domestic

clients3. All other (including publicly offered securi-

ties of foreign governments or political sub-divisions maturing within one year of date ofissue)

Payable in dollars4. Loans to foreign banks5. Acceptances made for foreign account6. All other

NOTE.Certain of the figures for August 12, 1936, and succeeding weeks, in tables 8 and 9, are not pre-cisely comparable to the corresponding figures for weeks preceding August 12, owing to a revision inreporting practice by one of the reporting banks. In order that allowance may be made for this revision,the figures for August 12, 1936, are presented below on a basis comparable with those for preceding weeks.

FIGURES FOR AUGUST 12, 1936, COMPARABLE WITH THOSE OF PREVIOUS WEEKS[In millions of dollars]

Table

Tables....Table 9

Total

1,383. 3655. 8

UnitedKing-dom

262.093.9

France

139.324.4

Nether-lands

90. 820.6

Switz-erland

127. 64.2

Ger-many

21. 1176.3

Italy

28.311.9

OtherEurope

116.854.8

TotalEurope

786.0386.1

Can-ada

150. 275.1

LatinAmer-

ica

210.2115.7

FarEast

211.068.8

Allother

19.810. 1



TABLE 1.TOTAL CAPITAL MOVEMENTNet Movement to United States Cumulated Weekly from Jan. 2, 1935

[In millions of dollars. Minus sign indicates net movement from U. S.]

Week ending

1935

Jan. 9Jan.16Jan.23Jan.30

Feb. 6__.Feb. 13._Feb. 20..Feb. 27._

Mar. 6...Mar. 13_.Mar. 2O._Mar. 27..

Apr. 3Apr. 10Apr. 17Apr. 24

May 1M yMay I 5 ^May 2 2 / ^ fMay 29

June 5._.June 12..June 19...June 26..

July 3July 10July 17.July 24....July 3 1

Aug. 7-..Aug. 14..Aug. 21..Aug. 28..

Sept. 4Sept. 11.. .Sept. 18....Sept. 25....

Oct. 2Oct. 9Oct. 16Oct. 23Oct. 30

Nov. 0...Nov. 13Nov. 20..Nov. 27..

Dec. 4 . . .Dec. 11..Dec. 18.Dec. 24..Dec. 31..

Total

8.223.2

100.7119.5

178.9211.7219.8215.2

217.9221. 5236.0253. 5

258. 7318.2347.2390.6

348.2365.4386.6412. 3506.9

551.9608. 8632.9632. 1

615.2637.4663.1676.1682.4

686.4721. 7753.9769.0

766. 2777.0784.3830.0

898.3965. 7

1,051.81,103. 81,131.4

1,128.81,154.91,196.91,257.1

1, 346. 51,381.31,391.01,418.21,411.4

Inbank-

ingfunds

1.25.3

72.986.3

139.2168.5170.7166.8

170.5179.4194.3215.2

211.9270.5294.2338.8

300.3317.6342.0362. 3453.8

477.1527.7549. 2551.9

525.8550.4571.2578. 5572.6

565. 5593.4682. 6693.4

678.7685. 2663.8699. 6

738.2793.9871. 3902. 6912.3

900.3907.1912.1936.9

992.0986.2976.8985. 7963. 5

Inbroker-

agebal-

ances

2.62.03.73.7

3.35.07.0

10.9

13.715.420.221.7

21.120.921.721.0

21.821.920.920.320.7

26.426. 528.727.1

29.826.824.825.625.4

23.618.419.820.4

24.623.525. 129.8

29.830.727.123.720.5

19.315.15.95.5

13.26.39.89.56.0

In security transactions

Totalsecur-ities

4.415.924.129.4

36.338.342. 137.5

33.726.721.516.6

25.626.931.330.8

26.125.923.729.832.4

48.554.654.953.2

59.560.267.172.084.4

97.4109.851.555.2

62.968.295.4

100.6

130.4141.1153.4177.5198.6

209.2232.7278.9314.7

341.4388.9404.5422.9441.8

Do-mesticsecur-ities

1.66.6

11.314.0

17.219.016.812.3

6.5(l)

- 4 . 0

- 6 . 2- 4 . 1- 3 . 3- 2 . 9

- 6 . 8- 7 . 4- 7 . 5- 1 . 0

2.0

9.312.513.212.8

15.816.224. 128.139.1

49.659.-766.869.5

72.675.579.6

90.397.5

104.7124.9142.6

154.2177.2216.6249.6

253.9283.2290.6302.7316. 7

For-eign

secur-ities

2.89.2

12.715.4

19.119.325.225.2

27.226.725.523.1

31.831.034.633.7

32.933.331.230.830.3

39.242.141.740.4

43.744.043.043.945.3

47.850.2

-15 .2-14 .3

- 9 . 7- 7 . 215.817.9

40.143.648.752. 656.0

55.055.562.365.0

87.5105. 7113.8120.3125. 2

Week ending

1936

Jan. 8Jan.15Jan. 22Jan. 29

Feb. 5Feb. 12Feb. 19Feb. 26

Mar. 4Mar. 11Mar. 18Mar. 25

Apr. 1Apr. 8Apr. 15Apr. 22Apr. 29

May 6May 13May 20May 27

June 3June 10June 17June 24

July 1July 8July 15July 22July 29

Aug. 5Aug. 12Aug. 19Aug. 26

Sept. 2Sept. 9Sept. 16Sept. 23Sept. 30

Total

1,448.21,457.11,463. 41, 450. 3

1, 461. 71, 453. 21, 469. 21, 498. 0

1, 495. 61,495. 91, 502. 51,513.9

1,510.11, 530. 01,571.11, 582. 71, 597. 7

1, 619. 51, 658. 01, 715. 51, 733. 2

1,761.51,841.51,929.41, 967. 4

1, 948. 21, 972. 41,990.62,008.12, 020.1

2,032. 52,062. 5

094.22,123. 8

2,139. 92, 171. 72,184. 62, 231. 92, 281. 7

Inbank-

ingfunds

1,008. 61,011.21,053. 21,037.8

995. 2981. 6982.6991.4

967.6972.4

1, 001. 01,000. 01,024. 9

1,042. 51, 068. 91,113. 11,128.1

1,131.71,184. 61,256.31, 276. 5

1, 227.01, 236. 41, 234. 91, 233. 01, 229. 4

1, 230. 51, 252. 81, 269. 11, 288. 0

1, 274. 21, 295. 01, 287. 01, 315. 31, 353.1

Inbroker-

agebal-

ances

4.56.86.66.5

6.51.9

- 3 . 2.4

3.51.16. 1.5

.4- . 14.52.97.4

17.116.517.114.7

17.618.319.420.1

16.520.019.120.517.9

19.920.119.618.2

15.216.920.119.323.2

In security transactions

Totalsecur-ities

435.1439.0403.6406.0

459. 9469.8489.9506.3

510. 2504.8513. 2530.7

542.1557. 7565.6579.8565.5

559. 9572.6585. 3590.3

612. 1638.5653. 6670.8

704.7716.0736.7754. 6772.8

782.0789.6805.4817.6

850.5859.7877.5897. 3905.4

Do-mesticsecur-ities

336. 2336.7342.0347.1

355.8363.0384.9400.5

402.3406.1410.0424.5

427.6445.7456.3468. 0477.0

462.0469.0474.1475.1

473.5495.2502.9515.8

524. 1528.7535.9549.3562.8

566.8571.1582. 6591. 3

596. 3600. 6614. 5631.6633. 3

For-eign

secur-ities

98.9102.361.658.9

104.2106.8104.9105.7

107.998.7

103. 2106. 3

114.4112.0109.3111.788.5

97.9103.6111.2115.2

138.6143.3150.7155.0

180. 5187.3200.8205.3210.0

215.2218.5222.8226.4

254.2259. 1263. 0265. 6272.2

i Outflow less than $50,000.



TABLE 2.TOTAL CAPITAL MOVEMENT, BY COUNTRIESNet Movement to United States Cumulated Weekly from Jan. 2, 1935


Week ending- TotalUnitedKing-dom

France Nether-landsSwitz-erland

Ger-many Italy

OtherEurope

TotalEurope Canada

LatinAmerica

AllOther

1935Jan. 9Jan.16Jan. 23Jan. 30Feb. 6Feb. 13Feb. 20Feb. 27Mar. 6Mar. 13Mar. 20Mar. 27

April 3April 10April 17.._.April 24May 1May 8May 15May 22May 29June 5June 12June 19June 26July 3July 10July 17July 24July 31Aug. 7Aug. 14Aug. 21Aug. 28Sept. 4Sept. 11Sept. 18Sept. 25_....Oct. 2Oct. 9Oct. 16Oct. 23Oct. 30Nov. 6Nov. 13Nov. 20Nov. 27Dec. 4Dec. 11Dec. 18Dec. 24Dec. 31

8.223.2

100. 7119.5178.9211.7219. 8215.2217.9221. 5236.0253.5258. 7318.2347.2390.6348.2365. 4386.6412.3506.9

551.9608. 8632.9632. 1615.2637.4663.1676.1682.4686. 4721.7753.9769.0766.2777.0784.3830.0898.3965.7

1,051.81.103.81,131.41,128. 81,154. 91.196.91, 257.11, 346. 51,381.31,391.01, 418. 21,411.4

- 2 . 44.7

42.949.868.387.597.5

109.0108. 9109.3122.7135.4140. 6176. 2187.2210.6197.1208.3219. 4248.9266. 2304.7293.9306. 5308. 0307. 5318.1330. 8326. 9328.2329.0327.2342.5337.6

331.0337.8348. 1367.1379.9408. 2434.5456. 5456.5462. 9466.5490.5537.2553. 2559.1559.9565. 3554.9

10.115.033.731.445.341.345. 542.644.742.533. 233.1

25. 137.446.242.648.145. 134.713. 172.3

56. 3112.1120. 1119.9114.0116.0119.4118.5117.7116.8115.0120.3119. 5118.0105. 496.977.6

100.483. 1

110.9104.5125.4119.4128.9129.9120.2180. 9206.0218.1214.0210.2

.2- 1 . 9

2,212.914.418.117.214.7

13.214.915.315.79.0

-3.413.fi26.729.624.925.728.7

38.051.845. 949.848.347.850.656.147.652.371.974.078.774.869.758.472. 1

82.794.9

102.3103. 6102. 999. 199.998.6

101.7106.9113.7112. 9116.8114.5

- 1 . 0- . 9

8.67.66.55.94.64.91. 71.5

16.014.416.015.717.917.621.424.3

31.830. 429.4

27.425.826. 227. 129.531.233. 636.037.641.145.249.757.169.874.081.789. 292. 799.1

101.7108.3114.0124.2125. 5126. 8127. 7130.4

.82.8

14.3.1

2.06.2.4

1.7

3.04.91.93.32.63.24.64.86.18.98.9

10.313.212.213. 916.015.015. 017.219.522.825.025. 126.227.530.030. 031.833.633.332.231.231.032.132.531.933.132.932.734.335.236.636.6

- 1 . 2- . 9

- 1 . 4- . 9- . 6- . 9

- 1 . 1- 1 . 7

- 1 . 6- . 2- . 8- . 4

- 1 . 0- . 3(2)1.4

- . 4

r

2.63.02.2.6

2.94.34.63.22.72.53.15.64.77.38.4

10.010.110.712.916.426.224.2

25. 125.723.923.324.0

2.7- 1 . 5

3.613.117.722.317.621 923! 426.827.935.229.429. 030.227.629 936.737.740.2

43.044. 146.345.0

49. 151.353.453.855.253.754.160. 062. 661.365. 573.181.284.598.8

111.1123. 6123.3121. 1123.0123.9125.8125.1126.2124.3130.7130.0

7.421. 692.8

103.1150. 4177. 5188.7190. 6194.4196.3203. 9214. 5219.2257. 929 7330^2321. 9331.9343. 0360. 0448. 6

486. 6543. 7561.9566. 7563. 9577. 0599. 8602. 5603. 9612.3631. 3662. 3666. 2658. 8656. 8663. 5693.5

799. 6881.7918.4943.4946. 8968. 3

1,010.61,056. 01,148.11,190. 61, 201. 21, 214. 31, 200. 6

.8

.44.21.01.04.35.33.6

- 1 . 4- 6 . 9- 2 . 9- 3 . 1

-10 .40)97

-.2-19 .3-19.4-16 .8-12 .5- 8 . 8

-12 .4-11 .6- 8 . 0- 8 . 1

-20 .4-23 .0-20 .9-18 .9-18 .5-30 .7- 2 1 . 1-16 .8-17 .3-17 .5-19 .2-27 .6-20 .8-21 .5- 1 3 . 9-13 .6-10 .4-16 .2-20 .1-11 .8-16 .0- 3 . 3

-10 .3-13 .7-12 .8- 4 . 2

1.8

10.711. 111.714.018.119.819.021.626. 529 930.' 032. 030.932.834.733.533.635.538.837.439. 237. 643. 641.747.045.851.550.251.055.756.458.159.964.764.271.572.173.476.078.376.077. 677.3

78.781.375.269.8

10.5

1 Inflow less than $50,000. 2 Outflow less than $50,000.



TABLE 2.TOTAL CAPITAL MOVEMENT, BY COUNTRIESContinuedNet Movement to United States Cumulated Weekly from Jan. 2, 1935


Week ending Total

1, 448. 21,457.11, 463. 41, 450. 3

1, 461. 71, 453. 21,469.21,498. 0

1,495.61,495. 91, 502. 51, 513. 9

1,510.11, 530.01,571.11, 582. 71, 597. 7

1,619.51. 658.01,715.51, 733. 2

1, 761. 51, 841. 51,929. 41, 967.4

1, 948. 21,972.41,990. 62,008.12, 020.1

2, 032. 52, 062. 52, 094. 22,123. 8

2,139. 92,171. 72,184. 62.231.92,281.7

UnitedKing-dom

555. 9550. 8553. 4552.1

549. 6545.8580.3599. 4

592.8590. 0576.1575.3

560.4564. 5584. 5592. 6602.2

611. 6632.1640.6646.1

643.6673.7689.6696.5

682.3687. 6678. 0688.2694.7

698.7707.6720.2723.7

701.3707. 3701. 9725. 5780.2

France

216. 6219. 4220. 2223.1

220.8225. 3204. 3197. 2

202.3205.0211. 1217. 5

221.7216.1224. 3222.5210.4

210.1205. 6235. 2227.2

220.5211.8236.9243.6

240.0238.8242.8238.9233. 0

237.9229.6232.6231.4

232. 7233. 3226. 2226. 6201.9

Nether-lands

116.3114.4115.0116.0

119. 5120.9125.8129. 9

128.9

frb_011937

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