Discount rate of the Federal reserve bank of New York on 60 and 90 day commercial paper and market rate on 4 to 6 months' commercial paper in New York.

Market rate on 90-day bank bills in London and the minimum rate of the bank of England.

Commenting upon these exhibits, let me say that they show the following: That from the time of the establishment of the Federal reserve bank of New York down to the time when war was declared upon Germany, in April, 1917, the discount rate of the New

DISCOUNT RATE of the FEDERAL RESERVE BANK OF NEW YORK AND THE MARKET RATE ON DIFFER

ENT TYPES OF PAPER.

Prevailing selling rate each week of prime 4 to 6 months commercial paper, prime 60 to 90 day bankers' acceptances and United States certificates of indebtedness maturing in 6 to 9 months.

Source of information: Annual reports and circulars of Federal reserve bank of New York and reports of dealers to the Federal reserve bank of New York.

York bank was at all times above the market rate for commercial paper; from that date to the present date, the discount rate has been below the market rate for commercial paper. The chart shows that in the Bank of England, with one or two exceptions, at the end of 1915 and the beginning of 1916 (see p. 559), the minimum discount rate of the

Bank of England has been above the market rate for commercial bills during the entire period.

Also a chart and table comparing the market rates with our rates for certificates of indebtedness and commercial paper for the years 1920 and 1921 to date. (See p. 563.)

Also a chart comparing the rate on commercial paper after the Civil War and after the World War. (See p. 566.)

A chart comparing market rates of commercial paper, bankers' acceptances and certificates of indebtedness in the New York market. (See p. 567.)

A chart comparing the weekly call loan rate for loans on the New York Stock Exchange, with the 60-day time loan rate on industrial collateral, on the New York Stock Exchange. (See p. 567.)

CERTIFICATES OF INDEBTEDNESS-METHODS OF DISTRIBUTION-SECOND FEDERAL RESERVE DISTRICT.

[Addresses delivered by Mr. R. H. Treman and Mr. Ray Morris before a conference of county directors at the Bankers' Club, New York City, July 16, 1918.]

CERTIFICATES OF INDEBTEDNESS DEPARTMENT OF THE FEDERAL RESERVE BANK OF NEW YORK.

The certificates of indebtedness department of the Federal Reserve Bank of New York was created to handle the distribution in the second Federal reserve district of this form of security as issued from time to time by the United States Government. In organizing the department it was decided to appoint a county director for each of 70 counties in the district. No county directors were appointed for New York, Bronx, Kings, Richmond, or Hamilton Counties. A conference of these county directors was held at the Bankers Club in New York City on Tuesday, July 16, 1918. A large majority of the counties were represented, and the tone of the meeting was spirited and enthusiastic. The discussion of the subjects brought before the conference proved to be so instructive and suggestive that there were many requests for a full report of the meeting. This pamphlet is published in response to those requests. As the deliberations were of the most informal nature and as the addresses of both Mr. Treman and Mr. Morris were of an extemporaneous and discursive character-not prepared for publication-due allowance should be made therefor by the critical

reader.

INTRODUCTORY REMARKS BY MR. ROBERT H. TREMAN, DEPUTY GOVERNOR FEDERAL RESERVE BANK OF NEW YORK.

Let me first, in behalf of the directors of the Federal reserve bank, express to you our appreciation of the sacrifices some of you have made in coming down here to attend this meeting. The work before us is one that has been assigned to the bankers. Our present expenditures in this country-counting loans to the Allies are a billion and a half each month, and it is estimated that by November these expenditures may be at the rate of $2,000,000,000 per month.

As you know, the Secretary of the Treasury has asked the bankers in the country to take certificates of indebtedness every two weeks to the extent of $750,000,000.

INTEREST RATES ON COMMERCIAL PAPER AFTER THE CIVIL WAR AND AFTER THE WORLD WAR.

Prevailing rates on prime 60 to 90 day paper each month from 1865 to 1874 and prevailing rates on prime 4 to 6 months paper each month from 1918 to 1921.

Source of information: For early period, unpublished study by Prof. F. R. Macaulay, of the National Bureau of Economic Research; for recent years, the New York Times and reports of dealers to the Federal reserve bank of New York.

The purpose is to prepare for the next, the fourth, Liberty loan bonds. We are, in this week, withdrawing from the banks all of the deposits that were made in connec tion with the third Liberty loan and also the tax money, so that after these calls all that will remain in the banks to the credit of the Government is what has been realized from the sale of $750,000,000 certificates issued June 25. To-day, the subscription for the second issue of certificates of indebtedness dated July 9 closes, and when I came up from the bank there were $247,000,000 subscribed out of the $254,000,000, which is the quota of the New York district. Unfortunately, some of the other districts up to to-day have not taken their full quota, but it is the purpose of the Treasury Department to distribute these certificates just as equitably as is possible to do so,