Statement of Federal reserve notes, by denominations, printed, shipped to Federal reserve agents, and United States subtreasuries, and on hand in reserve vault to Oct. 31, 1917.

Federal reserve notes issued, by denominations, through the Federal reserve agents, to the banks, also the amounts retired and outstanding, Oct. 31, 1917.

Mutilated Federal reserve notes, by denominations, received, destroyed, and on hand in vault Oct. 31, 1917.

NOTE. During the year burned, badly mutilated, and fractional parts of Federal reserve notes amounting to $7,180 have been identified, valued, and the bank of issue determined.

FEDERAL RESERVE BANK NOTES.

In addition to Federal reserve notes, the Federal reserve banks may issue "Federal reserve bank notes." This currency is of the same tenor and effect and is issued under the same terms and conditions as national-bank notes, except that its volume is not lmiited to the amount of capital stock of the issuing bank.

The notes issued to the banks are secured by deposits of United States Government bonds bearing the circulation privilege, acquired in the open market or taken over from national banks desiring to reduce their circulation.

On October 31, 1917, the amount of Federal reserve bank notes outstanding was $12,970,425, of which $10,732,400 was secured by Government bonds and $2,238,025 by lawful money deposited to

reduce circulation.

The bonds on deposit to secure this currency are classified as follows:

Notes issued, redeemed, and outstanding, by denominations.

$9,605, 900 825,000 146, 500 155,000 10, 732, 400

Federal reserve bank notes, by denominations, printed, issued, and on hand in vault, Oct.

The Federal land bank system recently established is of immeasurable benefit to the agricultural portions of the country in particular, and to the entire country indirectly. It enables the borrowing of money for the purchase and development of farms at rates of interest comparable with those paid by borrowers in other lines of business. and offers the opportunity to liquidate the borrowings in small semiannual payments extending over a period of from 5 to 40 years, Federal land bank loans on mortgages may be made at a rate of interest not in excess of 6 per cent, exclusive of amortization payments, and in amounts ranging from $100 to $10,000. No loan shall exceed 50 per cent of the value of the land mortgaged and 20 per cent of the value of the permanent improvements thereon.

The Farm Loan Board recently issued a statement showing the comparative cost on a $1,000 basis of a loan made on the 36-year amortization plan, 5 per cent interest, semiannual payments, and a loan on the simple interest plan at various rates from 5 to 7 per cent, for any period of years from 5 to 36. The table referred to follows.

The act establishing this system was published in the Comptroller's report for 1916, and statistics are submitted below relating to the extent of the applications for loans and the amount of loans made for each State and district by the 12 Federal land banks up to October 31, 1917. Applications for loans received by the 12 Federal land banks aggregated $193,250,945, and up to the date mentioned loans had been approved and there had been paid out to farmers upon their applications the sum of $21,040,138.

In the accompanying table are shown the States comprised in Federal land bank districts, the city in which the bank is located, the total amount of loans applied for, by States and by districts, and the total amount of loans closed and paid, by States and distircts. The table follows: