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National and Federal Reserve Bank notes.

Notes printed and delivered by the Bureau of Engraving and Printing.

Notes issued.

Notes redeemed..

Excess of notes redeemed over amount issued.
Excess of notes issued over amount redeemed

Notes in vault Oct. 31, 1917..
Reduction in notes in 'vault.
Increase in notes in vault...
Notes outstanding Oct. 31, 1917.
Reduction in notes outstanding.
Increase in notes outstanding..

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RATES FOR MONEY IN NEW YORK.

During the year rates for call loans in the New York money market showed a slightly wider range than during the preceding year, and on a few occasions during a brief flurry in the stock market in December last, and in July, at the time of making settlements for the First Liberty Loan-rates were bid up for a few hours, but soon settled back to the normal basis. These temporary fluctuations have no particular significance in connection with the price of money for the year. The rates generally were low in all sections of the country, as compared with the rates which had usually prevailed even in normal times before the beginning of the Federal Reserve System.

Rates for time loans running from 60 days to 6 months moved upward steadily throughout the year, ranging from a minimum of 2 per cent in January to a maximum of 6 per cent in September and October. Choice commercial paper opened at 3 to 4 per cent in November, 1916, and reached 5 to 5 per cent in September and October, 1917. Prime commercial paper opened at 31 to 4 per cent in November, 1916, and ruled generally at 4 and a fraction in February, to 5 per cent in October last. Good commercial paper opened at 34 to 41 per cent in November, 1916, and closed in October, 1917, at 5 to 5 per cent.

The range of rates monthly for each class of paper is shown in the following table:

Range of rates for money in the New York market, year ended Oct. 31, 1917.
[Reported by the Commercial and Financial Chronicle.]

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Range of rates for money in the New York market, year ended Oct. 31, 1917—Continued.

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The Commercial and Financial Chronicle also furnished the statement following, relating to the rates for sterling exchange for 60-day bills, sight bills, and cable transfers. It will be noted that 60-day bills were quoted at 471 to 471 in November, 1916, and 471 to 4713 in October, 1917, while sight exchange on those dates was 475 to 475 to 475.10 to 475.35, and cable transfers from 476.40 to 476.45 in November, 1916, to 476% in October, 1917. The rates and ranges, by months, during the year for these bills are shown in the following table:

Actual rates-Bankers' bill.

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Sterling exchange rates during the year have been stabilized principally through the large purchases of exchange which have been made in the New York market by the British Government.

DISCOUNT RATES OF THE FEDERAL RESERVE BANKS.

In the following table are shown the discount rates of each Federal Reserve Bank, in effect on December 4, 1917, for 1 to 15 day paper, 16 to 60 days, 61 to 90 days, agricultural and live-stock paper, running more than 90 days, paper secured by United States certificate of indebtedness or Liberty Loan bonds, and trade acceptances:

Discount rates of each Federal Reserve Bank in effect Dec. 4, 1917.

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Rate for acceptances purchased in open market, 24 to 4 per cent, except for San Francisco, whose rate ranges from 2 to 4 per cent. Rates for commodity paper have been merged with those for commercial paper of corresponding maturities.

TRANSACTIONS OF CLEARING-HOUSE ASSOCIATIONS.

Transactions of the 184 clearing houses of the country for the year ended September 30, 1917, as reported to the Comptroller of the Currency through the courtesy of Hon. William J. Gilpin, manager of the New York Clearing House Association, reached $303,998,000,000, an increase over the previous year of $61,762,000,000, and an increase over the volume of transactions of 1914 of $140,148,000,000, or approximately 85 per cent.

In volume 2 of the report of the Comptroller of the Currency will be found a comparative statement of the amount of clearings for each clearing-house association for the years 1916 and 1917, a chronological résumé of the operations of the New York Clearing House since its organization in 1854, and also the transactions during the past year of this association with the Assistant Treasurer of the United States in New York.

By reference to the returns for the current year it will be seen that there are 21 associations, the transactions of each of which exceeded $1,000,000,000 and that their combined transactions aggregated $278,484,000,000, or over 90 per cent of the total reported clearings.

The transactions of the clearing-house associations in the Federal Reserve Bank cities were $260,000,000,000 as against $206,865,000,000 in 1916, while the transactions by these associations and the 10 others with transactions in excess of $1,000,000,000, were $279,159,000,000 against $222,109,000,000 in 1916.

The operations of every clearing house in the country were greater in 1917 than in 1916, except Albany, N. Y.; Duluth, Minn.; Macon, Ga.; Jacksonville, Fla.; Fargo, N. Dak.; and Jackson, Miss. The combined decrease in these cities was $100,340,000.

Of the net increase of $61,762,000,000 of all clearing-house associations, practically 83 per cent is represented by the increases in the following cities: New York, $34,353,000,000; Chicago, $5,323,000,000; Philadelphia, $4,406,000,000; Kansas City, $2,228,000,000; Boston, $2,003,000,000; St. Louis, $1,599,000,000; and San Francisco, $1,338,000,000.

The records of the Federal Reserve Board relating to the operations of the Federal reserve clearing system do not extend further back than March 16, 1917; but it is reported that from that date to October 15, 1917, the volume of items cleared was $1,296,000,000, including items on the Treasurer of the United States to the amount of $56,520,000. It is assumed that a large proportion of these items is included in the report of the transactions of the clearing houses.

To what extent so-called "country checks" circulated, without going through clearing houses is not known, but it is assumed that relatively the amount is not very large. It has been estimated that during the course of a year, approximately 750,000,000 "country checks" of the value of $30,000,000,000 are used.

NEW YORK CLEARING HOUSE.

The statistical history of the New York Clearing House, extending back to the year 1854, the date of its organization, is of interest, showing as it does changes in membership and in capital, with the volume of clearings and balances paid in money in each year, together with the average daily clearings and balances and the per centage of balances to clearings. This association is composed of 62 members. In the association are 29 national banks, 16 State banks, and 14 trust companies.

The Federal Reserve Bank of New York, the assistant treasurer of the United States at New York, and the clearing-house collection department also make their exchanges at the clearing house.

It is noted that there are 21 banks and trust companies in the city and vicinity, which are not members but which make their exchanges through banks which are members. The combined capital of the member banks is reported at $200,750,000. The clearings of these associations during the year aggregated $181,534,000,000 and the balances paid in money $12,147,000,000. The average daily clearings were $601,100,000, and the percentage of balances to clearings 6.69 per cent. Of the total balances paid in money $4,641,000,000 was settled through the Federal reserve bank. The remaining debit balances were paid as follows:

In United States bearer gold certificates..

In United States order gold certificates..

In clearing-house gold certificates.....

In clearing-house note depository certificates:

For legal tenders.....

For gold certificates..

For silver certificates...

United States legal tenders and change.

$3,083, 323, 000

572, 840, 000 281, 550, 000

2, 423, 520, 000 74, 140, 000 1,066, 030, 000 4,808, 432

The transactions of the United States assistant treasurer at New York, with the Clearing House Association, were as follows:

Debit exchanges.

Credit exchanges..

Excess of credit balances....

$596, 863, 000 603, 301, 000

6, 438, 000

In the following table is shown in millions of dollars the volume of clearings of the associations of the Federal reserve bank cities and of 10 other clearing houses, the combined transactions of each of those classes, as well as of other clearing houses, and the grand total for the United States:

Clearings of clearing-house associations in the 12 Federal reserve bank cities and others, with transactions exceeding $1,000,000,000, in 1917.

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It appears that the first official attempt to collect statistics relating to banking in the United States was made in 1833 by the Secretary of the Treasury in compliance with a resolution of the House of Representatives adopted July 10, 1832, as follows:

Resolved, That the Secretary of the Treasury be directed to lay before this House, at the next and each successive session of Congress, copies of such statements or returns, showing the capital, circulation, discounts, specie, deposits, and condition of the different State banks and banking companies as may have been communicated to the legislatures, governors, or other officers of the several States within the year, and made public; and where such statements can not be obtained, such other authentic information as will best suit the deficiency.

In conformity with this resolution, and up to 1863, inclusive, the Secretary of the Treasury submitted to Congress such information relating to the condition of banks as he had been able to obtain. In his annual report on the condition of the banks for 1863, the Secretary stated that the action of Congress requiring regular returns from banks of their circulation and deposits, with reference to the internal

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