Comparative statement of the principal items of assets and liabilities of the Federal reserve banks from the date of the first report, Nov. 20, 1914, to Nov. 30, 1917-Continued.

Comparative statement of the principal items of assets and liabilities of the Federal reserve banks from the date of the first report, Nov. 20, 1914, to Nov. 30, 1917-Continued.

Comparative statement of the principal items of assets and liabilities of the Federal reserve banks from the date of the first report, Nov. 20, 1914, to Nov. 30, 1917-Continued.

In the weekly statements issued by the Federal Reserve Board, in addition to showing in detail the assets and liabilities of the Federal reserve banks, the volume of Federal reserve notes issued, the amount secured by gold and other lawful money deposited with the Federal reserve agents, and the amount secured by commercial paper, are reported.

Since July 28, 1916, when, through the ordinary process of redemption and the limited requirements of trade, the volume of Federal reserve notes outstanding reached a low point of $174,023,000, there

has, with the exception of a slight decline during the month of January, 1917, been a steady and rapid increase in the amount in circulation.

This increase has been especially notable since the formal declaration of war against Germany. The unprecedented demands for currency incident to war business, the floating of the Liberty Loans and Treasury certificates, and the requirements of Army and Navy paymasters have increased the demand for currency, but the main cause of the increase of Federal reserve notes has been their issuance against the deposit with Federal reserve banks or the Federal reserve agents of gold certificates and gold, which it has been thought wise to accumulate under present conditions.

In the table following are shown the amounts of notes outstanding, amounts secured by gold and lawful money deposited, and by commercial paper, at the close of each week from November 20, 1914, to November 30, 1917:

Federal reserve notes-Weekly statement of Federal reserve notes outstanding (amount issued by Federal reserve agents to the banks, less "unfit” notes returned for redemption), amount secured by gold and lawful money, and amount secured by commercial paper, from Nov. 20, 1914, to Nov. 30, 1917.

Federal reserve notes-Weekly statement of Federal reserve notes outstanding (amount issued by Federal reserve agents to the banks, less "unfit" notes returned for redemption), amount secured by gold and lawful money, and amount secured by commercial paper, from Nov. 20, 1914, to Nov. 30, 1917-Continued.

Since June 15 of this year, a marked increase is noted in the proportionate amount of notes secured by commercial paper, there being but $68,029,000, or less than 13 per cent of the total outstanding thus secured on that date, whereas on November 30, the amount so secured had increased to $464,521,000, or more than 41 per cent of the total.

Up to October 31, 1917, Federal reserve notes to the amount of $2,188,300,000 were printed, $1,533,360,000 of which were shipped or delivered to, or upon the order of, the Federal reserve agents, and $654,940,000 held in the reserve vault available for shipment as required.

During the year ended October 31, 1917, Federal reserve notes to the amount of $137,060,290 were returned to this office for destruction as "unfit for circulation," making a total of $218,794,720 mutilated notes so returned to that date.

Detailed information relative to issues and redemptions of Federal reserve notes, by banks and denominations, is given in the following tables: