in interpreting the general credit situation, in particular, when taken in conjunction with the figures of prices and banking position, to give evidence of any tendency towards what is called "inflation." In fact, a principal purpose in devising the four charts for the business conditions section of the Bulletin mentioned above, was to bring into sharper relief the leading factors serving as a guide to general credit and discount policy, so that they might be more systematically considered in the formulation of Federal reserve policies. Note: As of October 7, 1925, the Federal Reserve Board announced a change in its weekly statement of condition of Federal reserve banks as follows: Beginning this week two new items have been added to the statement in order to show separately the amount of balances held abroad and amounts due to foreign correspondents. In addition, the caption, "All other earning assets," now made up of Federal intermediate credit bank debentures, has been changed to "Other securities," and the caption, "Total earning assets" to "Total bills and securities." The latter term has been adopted as a more accurate description of the total of the discounts, acceptances, and securities acquired under the provisions of Sections 13 and 14 of the Federal Reserve Act, which are the only items included therein. Pursuant to this announcement there appeared simultaneously therewith as a part of the statement the items: "Due from foreign banks" and "Deposits-foreign bank." The reader should consult the statement already given on pages 809ff. and make the corresponding adjustment there. APPENDIX I FEDERAL RESERVE ACT1 (Approved Dec. 23, 1913) As amended Aug. 4, 1914 (38 Stat., 682, Chap. 225); Aug. 15, 1914 (38 Stat., 691, Chap. 252); Mar. 3, 1915 (38 Stat., 958, Chap. 93); Sept. 7, 1916 (39 Stat., 752, Chap. 461); June 21, 1917 (40 Stat., 232, Chap. 32); Sept. 26, 1918 (40 Stat., 967, Chap. 177); Mar. 3, 1919 (40 Stat., 1314, Chap. 101); Sept. 17, 1919 (41 Stat., 285, Chap. 60); Dec. 24, 1919 (41 Stat., 378, Chap. 18); Apr. 13, 1920 (41 Stat., 550, Chap. 128); Feb. 27, 1921 (41 Stat., 1145, Chap. 73); Feb. 27, 1921 (41 Stat., 1146, Chap. 75); June 14, 1921 (42 Stat., 28, Chap. 22); June 3, 1922 (42 Stat., 620, Chap. 205); July 1, 1922 (42 Stat., 821, Chap. 274); Feb. 6, 1923 (42 Stat., 1223, Chap. 60); Mar. 4, 1923 (42 Stat., 1454, Chap. 252). AN ACT To provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the short title of this act shall be the "Federal Reserve Act." Wherever the word "bank" is used in this act, the word shall be held to include state bank, banking association, and trust company, except where national banks or Federal reserve banks are specifically referred to. The terms "national bank" and "national banking association" used in this act shall be held to be synonymous and interchangeable. The term "member bank'' shall be held to mean any national bank, state bank, or bank or trust company which has become a member of one of the reserve banks created by this act. The term "Board" shall be held to mean Federal Reserve Board; the term "district" shall be held to mean Federal reserve district; the term "reserve bank” shall be held to mean Federal reserve bank. FEDERAL RESERVE DISTRICTS Sec. 2. As soon as practicable, the Secretary of the Treasury, the Secretary of Agriculture and the Comptroller of the Currency, acting as "The Reserve Bank Organization Committee," shall designate not less than eight nor more than twelve cities to be known as Federal reserve cities, and shall divide the continental United States, excluding Alaska, into districts, each district to contain only one of such Federal reserve cities. The determination of said organization committee shall not be subject to review except by the Federal Reserve Board when organized: Provided, That the districts shall be apportioned with due regard to the convenience and customary course of business and shall not necessarily be coterminous with any state or states. The districts thus created may be readjusted and new districts may from time to time be created by the Federal Reserve Board, not to exceed twelve in all. Such districts shall be known as Federal reserve districts and may be designated by number. A majority of the organization committee shall constitute a quorum with authority to act. 'Footnotes in Appendices 1 and 2 are taken from the Federal Reserve Board's compilation. |