August 1930
502
FEDERAL RESERVE BULLETIN
AUGUST, 1930
FOREIGN BANKING AND BUSINESS CONDITIONS
LEGAL RESERVE REQUIREMENTS OF FOREIGN CENTRAL BANKS
Reserve requirements
Country
Liabilities against which reserves
must be held
Gold
Belgium..
Bolivia...
Notes
Notes
Notes plus other demand liabilities,
minus amount represented by
Federal loan debt.
Notes and other demand liabilities..
Notes and deposits
Bulgaria..
Notes and other demand liabilities..
Chile
Notes and deposits...
Albania. _
Australia.
Austria. _.
Notes and deposits.
Colombia
Czechoslovakia. Notes and other demand liabilities.
Danzig
Notes.
Denmark.
Notes..
Ecuador..
Notes and deposits..
Egypt....
Notes
England..
Notes in excess of fiduciary issue of
£260,000,000.
Notes and other demand liabilities..
Estonia...
Finland..
France
Germany..
Greece
Guatemala
Hungary.
Italy..
Japan_
Java
Latvia
Lithuania
Netherlands..
Norway
Peru
Poland...
Rumania..
Russia
Notes and other demand liabilities
in excess of 1,200,000,000 markka.
Notes and other demand liabilities..
Notes
Notes and other demand liabilities..
Notes
Deposits due in 30 days or less
Special deposits
Notes plus other demand liabilities,
minus amount represented by
State debt.
Notes and other demand liabilities..
Notes in excess of fiduciary issue of
120,000,000 yen.
Notes and other demand liabilities..
Notes
Notes
Notes and other demand liabilities..
Notes in excess of fiduciary issue of
250,000,000 kroner.
Notes and other demand liabilities..
Notes and other demand liabilities.
Notes and other demand liabilities.
Notes
South Africa.... Notes, deposits, and bills payable.
Spain..
Sweden
Switzerland-
Notes up to and including 4,000,000,000 pesetas.
Notes above 4,000,000,000 pesetas
Notes in excess of fiduciary issue of
250,000,000 kronor.
Notes
Qualifying provisions, etc.
Gold and
foreign
exchange
Per cent \ Per cent
H Foreign exchange may not exceed two-thirds.
25
i 2 24
Reserve ratio to be increased at 5-year intervals ending Jan. 1, 1938,
the successive ratios being 24 per cent, 28 per cent, and 33^$ per cent.
30
!
40
1250
1 2 33H
2 50
2 36
2 60
2 25
2 30
2 50
2 50
50
100
Foreign exchange net. Government consent necessary for suspension
of reserve requirement.
Foreign exchange may consist only of undisputed balances with
foreign correspondents.
2 40
100
35
2 30
12
71/2
30
Silver in reserve may not exceed one-fifth. Foreign exchange may
consist only of deposits payable in gold on demand or on 3 days'
notice in New York or London.
Foreign exchange net. Silver ineligible after March 10, 1931. Government consent necessary for suspension of reserve requirement.
Foreign exchange may consist only of demand deposits payable in
New York or London.
Foreign exchange may consist only of demand deposits.
Reserve ratio of gold and foreign exchange to be increased to 30 per
cent by the end of 1930 and 35 per cent by the end of 1935. Gold to
constitute at least one-half the reserve.
100 per cent reserve must be held against circulation in excess of 100
gulden per capita. Excess also subject to tax. Foreign exchange
may consist only of demand claims on the Bank of England.
Foreign exchange may consist only of the bank's non-interest-bearing
demand balances with Bank of Norway and Swedish Riksbank,
less indebtedness to these 2 banks, and non-interest-bearing demand
balance on giro account with German Reichsbank. Government
consent necessary for suspension of reserve requirement.
Foreign exchange may consist only of deposits payable in gold on
demand or on 3 days' notice in New York or London.
The original requirement was a gold reserve ratio of 50 per cent, but
on Oct. 30, 1916, the bank was authorized to substitute British
Treasury bills for gold.
Fiduciary issue may be increased by authorization of Treasury.
Maturity of foreign exchange in reserve must not exceed 14 days.
Foreign exchange net. Government consent necessary for suspension
of reserve requirement.
•
Silver in reserve may not exceed one-thirtieth of total reserve requirement.
2 40
2 40
140
125
1 100
12 24
Reserve ratio to be increased at 5-year intervals ending June 24, 1939,
the successive ratios being 24 per cent, 28 per cent, and 3 3 ^ per cent.
240
Silver in reserve may not exceed one-fourth. Fiduciary issue may
be increased, subject to tax, by authorization of Minister of Finance.
1 100
Additional requirements for notes in excess of 100,000,000 lats.
50
i4o7 ilZZIIIIZII
100 j
I
2 30
25
j
2 40 I
Fiduciary issue may be increased, subject to tax, by authority of
i King and Storting.
50 I Foreign exchange may consist only of New York and London funds.
1240
Silver in reserve may not exceed one-twentieth of gold held.
35
125
38.8
1 45
48.5
1 60
50
j
Reserve may include platinum. Foreign exchange limited to foreign currency in vault.
! Silver in reserve may not exceed 8 per cent of deposits and bills payable. Government consent necessary for suspension of reserve
requirement.
Note circulation limited to 6,000,000,000 pesetas and may exceed
5,000,000,000 only with consent of the Government. Consent of
Government required for any reduction of gold holdings and can
not be given unless these holdings are in excess of requirement
necessary for a circulation of 6,000,000,000 pesetas. Silver in reserve
may not exceed 5 per cent of notes up to and including 4,000,000,000
pesetas and 10 per cent of notes in excess.
Gold reserve may not fall below 150,000,000 kronor. King and
Riksdag may extend the fiduciary issue by 125,000,000 kronor.
40
1 May legally include silver.
The bank may, subject to the payment of a tax, permit the reserve ratio to fall below the legal minimum.
300,000,000 markka.
2
3
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Federal Reserve Bank of St. Louis
July 1932
437
FEDERAL RESERVE BULLETIN
JULY, 1932
LEGAL RESERVE REQUIREMENTS OF FOREIGN CENTRAL BANKS
[Including all changes reported up to July 1, 1932]
Reserve requirements
Country
Liabilities against which reserves
must be held
Gold
Albania. _
Australia .
Notes.
Notes .
Notes plus other demand liabilities,
minus amount represented by
Federal loan debt.
Belgian Congo.. Notes
Notes and other demand liabilities..
Belgium
Notes and deposits..
Bolivia
Gold and
gold exchange
Per cent Per cent
i 2 33H
• 15
2 3 24
Austria..
20
30
40
40
13 50
Bulgaria..
Notes and other demand liabilities-
Chile
Notes and deposits
3 35
Colombia..
Notes.
3 40
Czechoslovakia- Notes and other demand liabilities
Danzig
Denmark
Notes and demand liabilities
Notes
Ecuador..
Deposits.
Notes
Notes
Egypt....
8 15
3 30
25
35
50
Estonia..
Notes and other demand liabilities..
3 40
Finland.
Notes and other demand liabilities
in excess of 1,200,000,000 markka.
100
France
Germany
Guatemala..
Notes and other demand liabilities..
Notes
35
3 30
Notes, less due from banks
Deposits due in 30 days or less
Special deposits
Notes plus other demand liabilities,
minus amount represented by
State debt.
Notes and other demand liabilities..
Notes in excess of fiduciary issue of
1,000,000,000 yen.
Notes and other demand liabilities...
Notes.
Notes
Notes.
Notes.
Notes and other demand liabilities...
Notes in excess of fiduciary issue of
250,000,000 kroner.
Notes..
Deposits
12
Java
Latvia
Lithuania
Madagascar..
Morocco
Netherlands..
Norway
PeruPoland.
Notes and other demand liabilities...
For footnotes see end of table*
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Federal Reserve Bank of St. Louis
Silver in reserve may not exceed one-fifth. Foreign exchange may
consist only of deposits payable in gold on demand or on 3 days'
notice in New York or London.
Foreign exchange net. Government consent necessary for suspension
of reserve requirement.
Foreign exchange net; may consist only of demand deposits payable
in New York or London. Reserve ratio of 35 per cent effective until
Sept. 25,1933. Former ratio 50 per cent.
Foreign exchange may consist only of demand deposits. During
present emergency reserve against notes may fall to 30 per cent
without enforcement of penalties provided by law. An additional
reserve equivalent to 25 per cent of deposits must be held in form of
legal currency including gold, silver, and other types of money
(silver not to exceed one-half).
Foreign exchange not limited to gold-standard currencies. Reserve
ratio of gold to be increased to 17^ per cent, and of gold and
foreign exchange to 35 per cent, on Dec. 31, 1935.
»33H From Oct. 14, 1931, to July 31, 1932, only 3 3 ^ per cent reserve of gold
and foreign exchange is required; formerly 50 per cent. Foreign exchange may consist only of the bank's noninterest-bearing demand
balances with Bank of Norway and Swedish Riksbank, less indebtedness of these two banks, and noninterest-bearing demand balance
on giro account with German Reichsbank. Government consent
necessary for suspension of reserve requirement.
Notes in excess of fiduciary issue of
£260,000,000.
Italy__
Japan.
Foreign exchange may not exceed two-thirds.
Foreign exchange may consist only of exchange on England. Reserve
ratio to be increased to 18 per cent on July 1,1933; to 2l}i per cent on
July 1, 1934; and to 25 per cent on July 1, 1935.
Reserve ratio to be increased to 28 per cent on Jan. 1, 1933; and to
3 3 ^ per cent on Jan. 1, 1938.
3 40
*30
England..
Hungary.
Qualifying provisions, etc.
100
30
3 40
140
1 25
1100
123 24
3 40
1100
140
Note issue limited to 45,000,000 sucres.
The original requirement was a gold reserve ratio of 50 per cent, but
on Oct. 30, 1916, the bank was authorized to substitute British
Treasury bills for gold.
On Aug. 1, 1931, increase of fiduciary issue to £275,000,000 was author' ized by British Treasury for limited period. Period subsequently
extended to Sept. 30, 1932. Authorization can not be extended
beyond Aug. 31, 1933, unless Parliament otherwise determines.
Foreign exchange net. Government consent necessary for suspension
of reserve requirement.
Foreign exchange may consist only of undisputed balances with
foreign correspondents valued at current gold quotations converted
into Finnish marks at gold parity.
Foreign exchange not limited to gold-standard currencies; but must
be valued at current gold exchange rate and mature within 14 days.
Silver in reserve may not exceed one-thirtieth of total reserve requirement.
Reserve ratio to be increased to 28 per cent on June 24, 1934; and to
33K Per cent on June 24, 1939.
Silver in reserve may not exceed one-fourth. Fiduciary issue may be
increased, subject to tax, by authorization of Minister of Finance.
2 50
Additional requirements for notes in excess of 100,000,000 lats.
150
Fiduciary issue may be increased, subject to tax, by authority of
King and Storting.
Silver in reserve against deposits may not exceed one-fifth. Foreign
exchange may consist only of sight deposits payable in gold in New
York or London; or, up to one-half the reserve, of acceptances
payable in gold-standard currencies.
Foreign exchange net. Silver in reserve may not exceed one-twentieth
of gold held.
•~~~33M
140
100
50
1340
July 1932
438
FEDERAL RESERVE BULLETIN
JULY, 1932
LEGAL RESERVE REQUIREMENTS OF FOREIGN CENTRAL BANKS—Continued
Reserve requirements
Country
Liabilities against which reserves
must be held
Gold
Portugal
Rumania
South Africa.
Notes up to 2,200,000,000 escudos
plus deposits and other demand
liabilities.
Notes in excess of 2,200,000,000
escudos.
Notes and other demand liabilities. _.
Notes, deposits, and bills payable...
Gold and
gold exchange
Per cent Per cent
30
Foreign exchange net; not limited to gold-standard currencies. Until
July 1, 1941, Portuguese external gold bonds may be included to
the extent of 22 per cent of the total reserve.
100
25
1340
35
Notes up to and including 4,000,000,
000 pesetas.
Notes above 4,000,000,000 pesetas
38.8
145
48.5
160
Sweden..
Notes in excess of fiduciary issue of
250,000,000 kronor.
50
Switzerland..
Uruguay
Notes
Notes in denominations of 10 pesos
or more, and demand deposits.
40
40
U. S. S. R_—
Yugoslavia-..
Notes
Demand liabilities.
Spain
Qualifying provisions, etc.
25
13 25
35
Silver in reserve may not exceed 8 per cent of deposits and bills payable. Government consent necessary for suspension of reserve
requirement.
Silver in reserve may not exceed 5 per cent of notes up to and including 4,000,000,000 pesetas and 10 per cent of notes in excess. Note
circulation limited to 6,000,000,000 pesetas and may exceed
5,000,000,000 only with consent of the Government. Consent of
Government required for any reduction of gold holdings and can
not be given unless these holdings are in excess of requirement
necessary for a circulation of 6,000,000,000 pesetas.
Gold reserve may not fall below 150,000,000 kronor. Government
may, if urgently necessary, extend fiduciary issue by 350,000,000
kronor.
Obligations of the Uruguayan Government payable abroad may be
counted as gold up to 20,000,000 pesos. Note issue in denominations of less than 10 pesos may not exceed 20,000,000 pesos.
Reserve may include platinum.
RESERVE R E Q U I R E M E N T S IN ARGENTINA, CANADA, AND IRISH F R E E STATE
Argentine Con- Notes and subsidiary coin
version Office.
Canadian Min- Dominion note issue, less $63,500,000
and amount of advances under
ister of Fifinance act.
nance.
Irish Currency
Commission.
Deposits of Post Oflice Savings
Bank.
Legal tender notes--
As reserve falls from 40 to 36 per cent, discount rate of Conversion
Office must be progressively raised.
If Dominion note issue, less advances under finance act, falls below
$76,000,000, reserve requirements are as follows: Against a net issue
of from $50,000,000 to $76,000,000, a gold reserve of $12,500,000 is required; against a net issue of less than $50,000,000, a gold reserve of
25 per cent. In recent years the actual net issue has not fallen below
$120,000,000.
36
100
10
100
Foreign exchange is limited to British legal tender currency, bank
deposits in Great Britain or Northern Ireland, and British Government securities maturing within 1 year.
1 May legally include silver.
2 Foreign exchange may be in any stable currency.
« The bank may, subject to the payment of a tax, permit the reserve ratio to fall below the legal minimum.
* 300,000,000 markka.
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Federal Reserve Bank of St. Louis