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THIRD ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF CLEVELAND FOR THE YEAR ENDED DECEMBER 31. 1917 ,, WASHINGTON GOVERNMENT PRINTING OFFICE 1918 THIRD ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF CLEVELAND FOR THE YEAR ENDED DECEMBER WASHINGTON GOVERNMENT PRINTING 1918 OFFICII 31. 1917 LETTER OF TRANSMITTAL. FEDERAL RESERVE BANK, Cleveland, Ohio, January 15, 1918. Sm: I have the honor to submit herewith the third annual report of the Federal Reserve Bank of Cleveland, covering the year 1917. Respectfully, D. C. WILLS, Ohairman and Federal Reserve Agent. Hon. W. P. d. HARDING, Governor, Federal Reseroe Board, Washington, D. O. 3 TABLE OF CONTENTS. Page. Earnings and expenses Discounts for member banks " " Bankers' acceptances " United States bond transactions Municipal warrants Reserve position of the bank State-bank members '.' Relations with member banks and the public Relations with the Government Libery loan campaigns Treasury certificates of indebtedness Federal Reserve note issues Branch banks established Internal management of the bank Check clearing and collection 7 . 8 . 9 . 10 . 10 . 10 . 10 . 11 . 12 . . 12-17 15 . 17 . 18 . 20 . 21 . CHARTS. No. 1. No.2. No.3. No.4. No.5. Gross earnings, classified expenses, and net earnings... .. ... ..... Relation of revenue-producing assets to capital stock................... Certificates of indebtedness.......................................... Government deposits............ . .. Movement of Federal Reserve notes and gold reserve....... . ... . 23 24 25 26 27 A. Gross earnings, classified expenses, and net earnings. . . . .. . . . . . . . . . . . . . . . B. Average earning assets and average rates. .. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . C. Statement of condition of the Federal Reserve Bank. .. . . . . . .. . . . . . . . . . . . . D. Profit and loss account... . . . . . .. .. . .. .. E. Resources of member banks. .. .. . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . F. Operations in investments and discounts department. . . .. . . . . . . . . . . . . . . . . G. Discountrates.......................................................... H. Bills bought in the open market.... .. . . .. .. .. I. Operations in United States securities. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . J. Municipal warrants purchased. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . K. Changes in the reserve position of the bank. . . . . . . . . . . . . .. . . . . . . . . . . . . . . L. Member banks. . .. . M. Accommodation of member banks through discount of paper. . N. First Liberty Loan. . . . .. O. Second Liberty loan................................................... P. Certificates of indebtedness. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . Q. Rediscounts of paper secured by Government securities................... R. Government deposits. . .. .. .. S. Federal Reserve note issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . T. Check clearing and collection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . U. Gold settlement fund... ..... V. Fiduciary powers granted to national ban ks.. , . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 28 29 30 30 30 31 32 32 32 33 33 34 34 34 34 35 35 35 36 31; 36 EXHIBITS. 5 THIRD ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF CLEVELAND. It has been frequently urged that the primary function of the Federal Reserve Bank is that of service-first, i.n mobilizing reserves; second, in rediscounting; and third, in providing an elastic currency; and that it did not greatly matter whether or not the Federal Reserve Banks might be money-making institutions. With vastly increased opportunities for service during the past year, however, the Federal Reserve Banks have demonstrated their capacity to earn a very comfortable margin over their expenses. The Federal Reserve Bank of Cleveland has made net earnings during the year sufficient to pay its entire arrearage of accrued dividends; but as a matter of banking prudence, it has been deemed wise to provide an ample reserve against depreciation, and accumulated dividends have therefore been paid to July 1, 1917. All furniture and equipment have been charged off the books. The expenses at the same time have naturally increased markedly with the rapidly expanding activities. Chart No.1, appended hereto, .shows graphically the gross earnings, both in total and divided into the three chief classes of revenue, together with the expenses and net earnings, and Exhibit A gives the data in tabular form. Chart No.2 shows the relation of revenue-producing assets to capital stock. Exhibit B contains the daily average of invested funds, and the average rate of earnings on each class of investments, for each month of the year, compared with each month of 1916, and summary of investment operations is also shown in this exhibit. Exhibit C is a comparative balance sheet as at the close of business December 30, 1916, and December 31, 1917. Exhibit D is the comparative profit and loss account for the years 1916 and 1917. The extraordinary history of the United States during the year has tended toward a uniformity of experience in business and banking conditions throughout the country. District No.4 is very largely a manufacturing district, and its record for the year as such is quite similar to that of the other industrial districts. It is the leading dis7 8 ANNUAL REP,ORT OF FEDERAL RESERVE BANK 0]' CLEVELAND. trict in the production of primary iron and steel products, and its industries of this character have of course been taxed to capacity throughout most of the year, together with industries in most other lines, although there has been some slight recession from the peak after the completion of contracts for munitions, etc., from foreign Gov ernments, and pending the placing of orders for our own Government. This district also ranks high in agricultural products; and although the planting season 'vas late and cold, the crops have been large and profitable. Building industries have been checked somewhat by the high cost of materials and labor. Transportation difficulties have been very great, and in many lines have severely retarded production as well as distribution. The district, although containing a very large part of the bituminous coal supply of the country, has suffered a severe coal shortage during the last part of the year, owing in part to transportation difficulties, in part to the situation which arose from the fixing of coal prices, and in part to the necessities of the Northwest for coal, resulting in the priority order for Lake shipments; in some cases, industries have been obliged to close down for short periods because of lack of fuel. In spite of the untoward conditions above referred to, however, the general prosperity has been great, and the record of the district in Liberty loan subscriptions is evidence not only of the patriotism and thrift of our people, but also of surplus wealth nroduced. Between the first and second Liberty loans, the deposits in the banks of the district showed an actual increase of about 3 per rent. The growth of resources of member banks during the year is shown in Exhibit E. DISCOUNTS :FOll MElI1BER BANKS. The operations of the Federal Reserve Bank of Cleveland in rediscounts have immensely increased during the latter months of the year. This increase has been produced not only by the finanoing of Liberty loans, but by the demands of industry and commerce, which have required large amounts of working capital for financing current orders and operations, increased notably by high cost of materials and labor and consequent large inventories, and to some extent by the delays in production and deliveries incident to the difficulty of obtaining materials and the inadequate transportation facilities. Exihibit F shows the year's operations in rediscounts for member banks under the several classes of paper, and classified by maturities, with the same data for 1916. While the demand for money has increased and the money rates have tended to harden, no general advance in rates of rediscount at this bank was deemed advisable until December 1, when this bank in common with most of the other Federal Reserve Banks announced slight advances. ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. 9 Exhibit G shows the rates throughout the year for the various classes and maturities of paper. The growth in the use of trade acceptances has been marked during the latter part of the year. It was to have been expected that the usual reluctance to change would deter banks and business houses from the adoption of this new system until an active demand for money and credit and for the facilities of the Federal Reserve Banks should furnish a practical demonstration of the ad vantages of this kind of paper. From the inauguration of the Federal Reserve system, the best-informed men have felt that the adoption of the tradeacceptance system was only a matter of time, but that a considerable amount of time would be necessary before it should become the commoner method of closing accounts. It now seems that in less time than was anticipated, the system may come into very general operation. The Federal Reserve Bank of Cleveland has been active in the promotion of the adoption of the system at every opportunity, having been represented at a number of meetings of trade organizations for conferences on the subject, and having furnished information to a very large number of inquirers both by mail and in person. A large number of copies of the booklet, "Why Accept 1 " have been ordered through this bank during the year by business houses introducing the system among their trade. llANK}~RS' ACCEPTANCES. Transactions in bankers' acceptances have been large, although recently the bank has not been actively in the market for bankers' bills because of the needs of our member banks. District No.4 being rather more self-contained than some of the other districts, however, there have been occasions when the demands of member banks in other districts were so much greater, proportionately, than in this district, that other Federal Reserve Banks have found it desirable to dispose of some of their investments in bankers' bills, and the Federal Reserve Bank of Cleveland has been glad to be of service to the general situation by making large purchases on these occasions-thus providing the intercommunication and leveling up between the reservoirs which was intended in the establishment of the system of 12 banks, but without the necessity of rediscounting for any other Federal Reserve Bank its member banks' paper. A number of the larger banks in district No.4 have entered the acceptance field, discounting bills for both foreign and domestic trade during the year, and the Federal Reserve Bank of Cleveland has purchased the bills of its own member banks freely when offered. The following member banks have, upon application, been granted the right to accept up to 100 per cent of their capital and surplus 54007-18-2 10 ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. during the year: Fifth-Third National Bank, Cincinnati; Cleveland Trust Co.; First National Bank, Cleveland; Union National Bank, Cleveland; Union Trust Co., Pittsburgh. Exhibit H shows the transactions in bankers' acceptances during the year ns compared with 1916. UNITED STA'I'ES BONDS. Transactions in the older issues of Government securities have of course been practically suspended since the offering of the first Liberty loan. Purchases of small amounts of bonds from member banks have been made as a matter of accommodation. Exhibit I shows the transactions in Government securities. MUNICIPAL WARHANTS. As soon as war was declared and it became apparent that the facilities of the Federal Reserve Banks would probably be needed by their member banks, the Federal Reserve Bank of Cleveland, in accordance with the wise suggestion of the Federal Reserve Board and in common with 'the other Federal Reserve Banks, withdrew entirely from the market for municipal warrants, and has since purchased only small amounts of early maturing municipal bonds for which sinking funds had been provided, merely as an accommodation to member banks desiring to dispose of such bonds. The tra nsactions in municipal warrants are shown in Exhibit J. ImsERVE POSITJON. Th,e reserve position of the bank has remained strong in spite of the demands upon its loaning power. This has been due chiefly to the increased reserve required to be maintained in the Federal Reserve Banks by the amendment' of section 19 of the Federal Reserve Act, but also in part to the large increases in capital and reserve deposits on account of the accession of important State banks to our membership, as well as the increase in the capital and surplus of banks already members; and in some degree also to the considerable sums of gold patriotically sent by both member and State banks to strengthen the position of the system, either as excess deposits or in exchange for Federal Reserve notes. Exhibit K shows the changes in reserve position during the year. STATE BANK MEMBERS. The movement of the larger and more progressive State banks to join the Federal Reserve system has been marked in this district. ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. 11 This movement was known to be ultimately inevitable, and has been of course stimulated largely by the amendment of section 9 of the Federal Reserve Act as well as by a recognition of the added strength and prestige given to any bank by voluntary membership in the system, but has been also in large part due to a patriotic response to the forceful appeal of the President and a desire to do eveything necessary to fortify the position of our banking system against all possible contingencies arising from the war. Some considerable credit must also be given to the member banks, who ha ve shown in many cases their growing appreciation of the value of membership, thus encouraging nonmembers to join the system. The following State banks haye been admitted to membership during the year: Date of admission. 1917. Apr. 11 July 2 Nov. 1 Nov. 8. Do .... Nov. 21 Do .... Nov. 24 Nov. 30 Dec. 3 Dec. 14 De-c. 28 Narne of bank. Cleveland Trust Co ..................•........•..... Guardian Savings & Trust Co .......•.........•.......... Lawrence Savings & Trust Co ......•............... Citizens Savings & Trust Co............. Citizens Trust & Savings Bank.................. Ohio Bank & Trust Co.............................. Hillsboro Bank & Savings Co....................... City Trust & Savings Dank......................... Union Trust Co. of Pittsburgh...................... Exchange Bank of Kentucky....................... Pittsburgh Trust Co................................ First Standard Bank & Trust Co Capital and surplus. Location of bank. Cleveland. Ohio ..•.......... do New Castle. Pa ..•........... Cleveland. Ohio •.•.......... Columbus. Ohio ..•.......... Massillon. Ohio ..•...•....... Hillsboro. Ohio YoungstoWD Ohio Pittsburgh. i'a •............. Mount Sterling. Ky l'ittsburgh.!'a ....•.•.•..... Maysville. Ky..•............ . . . . ss.ooo.ooo 6,000.000 600.000 8.000,000 850.000 18.7,500 62,000 350,000 36,000,000 75,000 3,000,000 235,000 Exhibit. L shows the changes in the membership, in capital stock, and in reserve deposits during the year. RELATIONS WITH MEMBlWS AND THE r-nm.rc. Exhibit M shows the accommodation which has been extended to .member banks through rediscounts and purchase of acceptances during the year compared with 1916. Overdrafts have been small in volume, and of those which have appeared a number have been due to delays in the mail service. The required reserve deposits of member banks have been quite genrndly maintained unimpaired, and although it has been necessary to assess penalties for deficient reserves upon a small number of ban ks each month, the disposition to maintain reserves in conformity with the law, or beyond requirements, has been apparent on the part of most banks. Weeldy reports of required reserve are made by banks in the reserve cities and semimonthly reports by all other banks. One member bank has been closed by the comptroller during the year. The Federal Reserve Bank of Cleveland has had no losses and has no past-due paper on its books. 12 ANNUAL REPORT OF FEDEHAL RESERVE BANK OF CLEVELAND. Through its Liberty loan transactions the bank has corne into touch with the general public to a far greater degree than would have been thought possible at the beginning of the year. Arising out of this relation has come a realization of the functions played by the Federal Reserve Banks, not only as fiscal agents of the Government, but in steadying the money market and in providing for the distribution of the immense amounts of money and credit which have been moving throughout the country. This practical experience has confirmed the impression which the public very generally entertained even in advance of many banks, that the Federal Reserve system is a tremendously useful and practically indispensable servant of the public welfare; and undoubtedly great good is already resulting from the strengthening of this conviction. RELATIONS WITH THE GOVERNMENT. The relation of the Federal Reserve Bank to the Government IS of course the outstanding feature of the year's history. In the Federal Reserve Bank of Cleveland a fiscal agency department, with a staff of 60 persons, has been created in a few months, occupying almost half of the entire floor space required by the bank. This department does not include members of the Liberty loan committees, but is occupied in the distribution of bonds and certificates, the collection of and accounting for payments, the arrangements with depositary banks, tabulation of data, and in general the handling of the business produced by the great success of the "sales force," the Liberty loan committee, which has rendered such conspicuous voluntary service. THE FIBST LIBEHTY LOAN. The call of the Secretary of the Treasury for organization to obtain SUbscriptions to the first Liberty loan was received by the Federal Reserve Bank of Cleveland on May 3, 1917, and at an informal conference the immediate formation of a central Liberty loan committee to represent the entire district was deemed advisable. This was accomplished by requesting the clearing house associations ill the 13 more important centers of population and banking resources to send one delegate each to the Federal Reserve Bank for a discussion of program and the formation of a permanent organization. These delegates met on May 12, 1917, and after a thorough discussion of the problem, in so far as its details could be foreseen at that time, effected the organization of a central Liberty loan committ~e. The committee thereupon appointed an executive committee. The members of the central Liberty loan committee were thereupon constituted chairmen of the local organizations in their respec- ANNUAL REPORT 0]' FEDERAL RESERVE BANK OF CLEVELAND. 13 tive counties. The rural territory not directly covered by these committees appointed representatives who thereupon organized a separate county organization committee with subcommittees directed from Cleveland, Toledo, Columbus, Cincinnati, Pittsburgh, and Lexington. The 168 county areas within the Fourth Federal Reserve District were completely organized, the various security houses within the district contributing from their sales force members who were assigned to separate counties, and proceeded at once to ol'ganize county organizations. The district Liberty loan organization, as such, was compelled under force of circumstances to use the Federal Reserve Bank as headquarters, and under the stress of conditions, this produced some confusion which in some degree hampered the committees, as well as the operating staff of the Federal Reserve Bank. By June 1, 1917, there was thorough organization in everyone of the 168 counties of the district, and the 'effect of this organization, entirely voluntary, became at once apparent. The organization was, of course, more highly developed in the larger centers, although the work of the rural county chairmen can not be spoken of with too high praise. The closing of subscriptions June 15, 1917, showed in possession of the Federal Reserve Bank, qualified subscriptions in excess of $286,000,000 from 514,000 subscribers, The several areas reported as follows: Quota. Pittsburgh Toledo Cleveland . . . Subscription. S80, 858, 000 17,121,100 71,756,000 ------_ .. _- .------ 811J,047.350 ~66,gg~,~g , , Quota. Columbus .•..•...... Cincinnati. Lexington .•...•.•... . $9,279,000 33,368,500 8,025,000 Subscription. 310,751,550 44,659,450 6,819,750 ---',----------'--- -----'--~-- Exhibit K shows the subsciiptions and allotments «lassified. SECOND LIBERTY LOAN o~' ] HI 7. Experiences of the first Liberty loan indicated clearly the wisdom and necessity of f1 separate location for the headquurtei-s of the central Liberty loa n committee and a more comprehensi ve staff in its organization. The executive committee appointed on the first Liberty loan campaign immediately held sessions with a view of perfecting such an organization. The personnel of the central Liberty loan committee, as well as the personnel of the executive committee, was largely unchanged. There were a few changes in the chairmanships of the various county committees, owing to illness, other activities, etc., but in the main the skeleton organization developed in the first campaign was retained, although extended in detail in many respects. 14 ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. The executive committee determined llpon the policy of making a practical requisition upon each bank for its proportionate share of the amount of the second loan which the Secretary of the Treasury expected the fourth district to raise, With this end in view, the executive officeof the committee carefully studiediuethods and means to establish just quotas of the banking resources of the district, J n August, 1917, all banks within the district were ask~d to report the condition of their deposits as of June 15 and August 15, and also the amount of Liberty loan bonds of the first loan still in their possession, The response to this questionnaire was liberal and enabled the committee to establish the interesting fact that only a small percentage of bonds of the first Liberty loan was still in the hands of the banks, and, furthermore, that the deposits of institutions so reporting had increased from June 15 to August 15 between 3~ and 4 per cent. The banks that did not report were considered as possessing the deposits' given in the Rand-McNally Bankers' Directory of July 1, 1917, plus 31 per cent, the average increase shown by the reporting banks. Upon this basis, a quota of so many dollars was fixed upon every banking institution in the district; and each bank was advised by special letter, received on October 1, of their proportion of the $300,000,000of bonds which was the total minimum subscription asked of the Fourth Federal Reserve district by the Secretary of the Treasury. The effectiveness of the more comprehensive organization and the value of the well-learned lessons of the first loan campaign became quickly apparent as the second loan campaign gathered headway, Every bank in the district was requested to report the subscriptions obtained for each day upon" keyed" cards furnished them for the purpose. This rather burdensome task was faithfully performed by about 80 per cent of the banks, and the committee was able to judge of the progress with more than ordinary accuracy from day to day. The entire 168 counties within the Fourth Federal Reserve district in the second campaign were divided into six" areas," administered from Cleveland, Cincinnati, Columbus, Pittsburgh, Toledo, and Lexington, The Liberty loan organizations in these six central points took upon themselves cheerfully, and performed with the greatest skiil, the task of coordinating the campaign between each center and the counties assigned to it. Each area organization made every effort to exceed the minimum quota of every county within its area. The rivalry between the areas was healthful and helpful; the work of the county chairmen was most noteworthy in its zeal and efficiency. The organizations in each of the six area centers were highly developed, and were made up of an extremely skillful and high-powered personnel. ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. 15 The distribution of publicity and its choice and preparation were excellent and far-reaching in their effect. The publicity bureau, which undertook to supply advertising and editorial matter for 912 papers within the district, prepared and distributed a large amount of extraordinary copy, and it is interesting to note that 850 newspapers out of the 912 whose cooperation was so requested, complied in the fullest degree. The result was a total subscription to the second Liberty loan in the Fourth Federal Reserve district in excess of $486,000~000,reported from 867,000 subscribers. The several areas reported as follows: I ______ I __ 1 CI~vcland............ P.itt~burgh........... Cincinnati _. 1__ Q_u_ot_a._ Subscription. Q_"o_t,_a._ SlIhscriPtion.I $92,72.5,200 127,SI9,500 36,701,100 I 5151,377,200 Columbus........... 205,5~1,lQO Tolr;do.. 74,7 (ti, 4.)0 Lexington 4 ••••• ••••• $12,511,900 21,054.200 8,732,950 $19,.502,800 22,648,500 11, 38fl,100 Exhibit 0 shows the number and amounts of subscrrptions and allotments of the second Liberty loan, elivided according to size of SUbscriptions in the classes fixed by the Secretary of the Treasury for the purpose of allotment. THEASURY CEH'l'TFICATES 01·' INDEBTEDNESS. With each issue of Treasury certificates of indebtedness, an effort has been made not only to secure more than the district's proportion of the total issue, but also to assure as wide a distribution as possible. The earlier issues were brought particularly to the attention of banks throughout the district which had experience as distributors of high-grade bonds and note issues, and their hearty cooperation was uniformly secured. Exhibit P shows the total amount of each issue and the amounts allotted to the fourth district. The Federal Reserve Bank of Cleveland purchased varying amounts of each issue, chiefly for the purpose of having some of the certificates on hand for distribution to intending purchasers who had not subscribed before the subscriptions were closed; and in every case the amount held by the Federal Reserve Bank found lodgment in the hands of purchasers within a very short time after the date of issue. FINANCING THE CARRYING OF WAR LOANS. For the first Liberty loan and the issues of certificates leading up to it, a rather remarkably small volume of rediscounting by the 16 ANNUAL REPORT Oli' FEDERAL RESERVE BANK' OF CLEVELAND. Federal Reserve Bank was required, and the reports received from the banks under date of August 15 indicated that at that time practically all of the loan had been absorbed by the public, only a small amount of bonds being held by the banks themselves. For the second Liberty loan and the Treasury certificates issued in connection with it, a considerably larger volume of discounting has been done, and the indications are that a considerably larger volume of bonds is still in the hands of banks, although the proportion is not in the least a matter of concern. The total volume of member banks' collateral notes secured by Liberty loan bonds or certificates of indebtedness on July 15 was $1,050,000; on December 15, $10,885,550. The total volume of member banks' customers' paper, similarly secured, on our books on December 15 was $10,201,672.94. The exact corresponding figure for .Tuly 15 is not ascertainable, the records not being kept at that time to show this amount; but the amount was less than $1,000,000. Exhibit Q shows the total volume of rediscounts, both of member banks' notes secured by Governmentsecurrties as collateral and of paper of customers of the banks secured by Government securities, for each month of the year. F~XPENSE 0 •.. LIHEHTY LOAN AG,~:NCY. For the first Liberty loan the sum of $75,000 was named as the amount of expense in the fourth district which the Treasury Departwent would reimburse, upon presentation of vouchers in due form, WIthout question. The attempt was made to keep the =xpenditure within this sum, but the actual expense chargeable to the first Liberty loan to the date hereof is $104,593.05. For the second Liberty loan $200,000 was named as the available amount, and there has been expended to date $131,404.60. ,Vith considerable difficulty and gradually a capable office force has been built up for the clerical work of the Liberty loan committee, for the receiving of subscriptions and payments and accounting therefor, for issuing and exchanging certificates and bonds, for handling applications fordesignation as depositary for war-loan funds and conducting the business incident to such deposits, and for the other necessary work involved in our functions as fiscal agent; and a total of $49J92.08 has been paid in salaries to date of this report. No fees or commissions have been paid; the banks of the district have perform ed their arduous duties in handling large numbers of small subscriptions and in mallY cases very small payments, and in distributing the bonds, without reimbursement of allY sort. The expense of all newspaper advertising done in connection with the loans was contributed by public-spirited banks and business houses, The ANNUAL REPOR,T OF FEDERU, RESERVE BANK OF CLEVELAND. 17 actual out-of-pocket expcnses of representatives of the Liberty loan committees in traveling, purchasing supplies, etc., were refunded, as far as possible. GENEHAL EFFECT OF GOVERNMENT FINANCING. The effect of the Government financing in district No.4 has been undoubtedly similar to that in all other districts. There has been, naturally, an expansion in banking resources, a tightening of the rates for money, and the loaning ability of all financial institutions has been quite heavily drawn upon. Without doubt a part of the curtailment of building operations is due to the investment of funds in war loans which might otherwise han gone into such operations, as well as to the high cost of building. Many other forms of enterprise which are dependent upon a free supply of money Tor investment as fixed capital have been curtailed. The flotations of the loans, together with other influences of the war, has resulted in a decided trend toward the gradual exclusion of the purchase, and consequently the manufacture and distribution, of nonessentials. Manufacturers and dealers in nonessentials are therefore beginning to be quite seriously affected. On the other hand, this tendency toward economy and thrift is undoubtedly having a very beneficial effect on all of the people, and after the pains of adjustment have been passed, the general situation should be sounder than before. Chart No.4 shows the fluctuation of Government deposits during the year, and Exhibit R gives the same information in tabular form. RELATIONS WITH COlUPTROLLER'S OFFICE. The bank has endeavored during the y~ar to keep in close harmony with the office of the Comptroller of the Currency and the chief national bank examiner of the district, whose office is in the same building. Acknowledgment is very glady made of the cooperation which has been rendered by Chief Examiner S. H. L. Cooper and his staff. NOTE ISSUE. In the issue and redemption of Federal Reserve notes, which has been a conspicuous feature of the year's operations, the experience of district No.4 runs practically parallel with that of all the other districts. A large number of notes have been issued in exchange for gold and gold certificates deposited' with the bank, which have strengthened the general national situation very materially. The demands, however, for pay-roll currency have been constant and increasing, and far in excess of the currency deposited with this bank, 54007-18--3 18 ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. so resulting in a large increase in the volume of outstanding Federal Reserve notes. Of course, this currency expansion is in some degree necessary and inevitable at a time of greatly increased volume of business and higher cost of labor and commodities. The gold reserve against Federal Reserve notes, however, has remained strong throughout the year, and there is, in our judgment, little warrant for a fear that undue or unnecessary inflation is taking place. Chart No. 5 shows the movement of Federal Reserve notes 'and of gold reserve during the year, and Exhibit S shows the denominat.ions issued, destroyed, and outstanding, as well as those exchanged with other Federal Reserve Banks. The cost of Federal Reserve notes issued, including redemption cost, was $75,526.78. BRANCH BANKS. The officers and directors of the Federal Reserve Bank or Cleveland have always had in mind the certainty that sooner or later it would be desirable to establish branch banks in at least the two other large cities in the district. Upon the enactment by Congress of the amendment to the Federal Reserve Act, faciliating, among other t.hings, the establishment of branches, in June of this year the Federal R;eserve Board suggested that in their judgment the time had come when the system would shortly require this additional machinery. The distances in district No.4 being comparatively short, there is not the same urgent necessity of branches as is evident in some of the districts covering larger areas. However, it was recognized that particularly in the collection of checks and in the' payment and receipt of cash, there would be very great conveniences, particularly to the member banks in Cincinnati and Pittsburgh, in the location of branches in those cities. ~o requests had been made by the banks of either city, however, for the establishment of a branch until July 2, 1-917, when the clearing house banks of Cincinnati, through a committee, forwarded to the directors of the Federal Reserve Bank of Cleveland a petition for the establishment of a branch in that city. The clearing house committeewas immediately invited to confer with our directors on July 10, and at this and succeeding conferences the situation in Cincinnati was carefully considered. A committee of the board of directors was appointed to meet with Mr. Delano, of the Federal Reserve Board, at Cincinnati about the middle of August, .and at the meeting of the directors on September 7 the committee reported, suggesting the establishment of a branch for thc handling and collection of checks and' drafts and the receipt and payment of cash. After further conference with the Cincinnati representatives, and .exhaustive consideration of the by-laws and the probable operation ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. 19 of the branch on the part of the Federal Reserve Board and representatives of our directors, involving several conferences, the directors, at the meeting of October 5, recommended to the Federal Reserve Board that they be permitted to establish a branch at Cincinnati. In view of the probability that the plan of operation of this branch would constitute a desirable precedent for branches in other districts, the Federal Reserve Board at once devoted itself and its counsel to thorough and careful deliberation upon the form and content of the by-laws. The Federal Reserve Board having approved our recommendation on October 29, at the meeting of November 7 the directors of the Federal Reserve Bank of Cleveland formally, by resolution, established the branch and named Mr. VV.S. Rowe, president of the First National Bank; Mr. VV. C. Procter, president of The Procter & Gamble Co., and Mr. L. W. Manning, secretary of the Federal Reserve Bank of Cleveland, as their three appointees for directors of the Cincinnati branch.. subject to the approval of the Federal Reserve Board. The Federal Reserve Board approved these appointments and itself appointed Mr. Charles A. Hinsch, president of the Fifth -Third National Bank of Cincinnati, and Hon. Judson Harmon, former governor of Ohio, as its appointees. Since that time the plans for opening the branch have gone forward as rapidly as possible; quarters have been secured, part of the staff has been employed, vault and other equipment has been ordered, the accounting forms and procedure have been very carefully worked out, and the beginning of the bank's operations is expected to occur early in January. Under date of October 17 a petition from the member banks of Pittsburgh for the establishment of a branch in that city was tran~mitted to our directors, some informal discussion having occurred prior to that time. With the experience and the plan adopted at Cincinnati as a guide, somewhat more rapid progress was possible than in the case of Cincinnati, and after conference with the committee representing the Pittsburgh Clearing House Association, at the regular meeting of November 7 a resolution was adopted recommending to the Federal Reserve Board that permission be granted to establish a branch in Pittsburgh with powers similar to those of the Cincinnati branch. A committee was appointed to confer with t.he representatives of the clearing house association in Pittsburgh on November 14~and at the meeting of our board on December 8 the report of the committee was received and Messrs. n. B. Mellon, vice president of the Mellon National Bank; Charles VV.Brown, president of the Pittsburgh Plate Glass Co., and George De Camp, national bank examiner, were named as the appointees of the Federal Re- 20 ANNUAL REPORT OF FEDERAL R.ESERVE BANK OF CLEVELAND. serve Bank of Cleveland on the directorate of the Pittsburgh branch. The Federal Reserve Board approved these appointments and named Messrs. T. H. Given, president of the Farmers Deposit National Bank, and J. D. Callery, chairman of the board of directors of the Pittsburgh Railways Co., as its appointees. Mr. De Camp, designated as manager of the branch, was unable to secure release by the Comptroller of the Currency until January 1, but on that date will nssume his duties, and the opening of the Pittsburgh branch should follow closely after that of the Cincinnati branch. The board of directors has met 13 times during the year with an a ttendance of eight. Fifty-three meetings of the executi ve committee have been held. Mr. R. P. vVright, secretary and treasurer of the Reed Manufacturing Coo, of Erie, Pa., succeeded Mr. C. H. Bagley, of Cony, Pa., as a class B director on January 1, 1917, Mr. Bagley ha ,oing been unable to stand for reelection because of poor health; and this has been the only change in the personnel of the board. Mr. VV. S. Rowe has remained the member of the ad visory counci I. On .Ianuu ry 1, 1917, Mr. Horace G. Davis, then assistant to the Federal Reserve agent, was made H 11 assistant cashier; and on September 1, Mr. F. J. Zurlinden, ,,0110 had been head of the discount and investment depa.rtmentv wa s made all assistant cashier, as was also Mr. w. F. Tu.ylor, who had been uuditor; and Mr. G. H. Wagner, who had been assistant auditor. was made auditor. At this time a, readjustment of the work of the bank, made necessary in large part -by the establishment of the fiscal agency department, was effected, and Mr. M. J. Fleming, assistant cashier since .Ianua ry 1, 1916, took charge of the new department, the remainder of the operating departments being distributed under the supervision of the other three assistant cashiers. Owing to the increase in the work OT all departments, rna nv uddi tions to the sta if 11ave been necessary, and there are now 6+ emplovees in the banking department proper, 75 in the transit department, and 58 in the fiscal agency department. Of the bank employees, six are serving exclusively in the department of the Federal Reserve agent, which has required an increasing organization. On November 27 Mr. L. VV. Manning, who had been with the bank since its organization, and had served since January 1 as secretary of the bank and assistant to the Federal Reserve agent, took office as manager of the Cincinnati branch. To accommodate the fiscal agency department it has been necessary to secure additional space, adjoining the quarters on the first floor of l. vernge ANNUAL REPORT OF l!'EDERAL RESERVE BANK 0]' CLEVELAND. 21 the Williamson Building which have been occupied by the bank since January 1, 1917; and this space has had to be built, covering a court between the two wings of the building. Our rapidly expanding functions have made it increasingly difficult to provide and arrange working facilities rapidly enough. An additional supply of vault equipment has been necessary, and the vault is now fully occupied with high-grade modern chests, in units which will be available in the event of any necessity of change in location. EXAMINATIONS. One complete examination of the bank has been made during the year by the Federal Reserve Board examiner and his staff; also a brief examination of the methods of the fiscal agency department while the first Liberty loan was being handled. CHECK COLl"ECTION AN D ChEAlUNG. The check clearing and collection system has grown with the other work of the bank during the year, and as a result of frequent invitations, 70 nonmember banks have been added to the par list, which now includes 565 of the 1,170 nonmember banks in the district. Exhibit T shows the volume of clearing operations. The operations of the gold settlement fund during the year are fully covered in the report of the Federal Reserve Board. The immense usefulness and actual indispensability of this facility has been many times demonstrated in the shiftings of funds incident to the Government financing .. Exhibit U shows the monthly totals of debits and credits to the Federal Reserve Bank of Cleveland in the gold settlement fund. Exhibit V is a tabular statement of the applications for fiduciary powers granted under the provisions of section 11k of the Federa 1 Reserve Act. THE OUTLOOK. The conditions at the close of the year in district No. 4 are somewhat uncertain and difficult, by reason of the many complex problems awaiting satisfactory solution throughout the Nation, and the inevitable adj ustments consequent upon the necessary emphasis OJ) economy, and the concentration of effort upon only those enterprises which are essential to the winning of the war. The outlook can not be said to be wholly favorable to the continuance of unbridled prosperity therefore; but there is no pessimism as to the ontcome, and no disposition to withhold an,) ounce of energy or sacrifice (hat may be called upon. It is evident that the power of service of 22 ANNUAL REPORT OF :FEDERAL RESERVE BANK OF CLEVELAND. the Federal Reserve Bank of Cleveland may receive a severer test than any it has yet had; it is also evident that the confidence in the strength of this institution, as an integral part of the Federal Reserve system under the wise leadership that has been so evident during the past year, is unshakable and well founded. The officers and directors of the bank welcome the opportunity of service to the utmost, confidently counting upon the continually increasing cooperation of the banks and the people of the fourth district. ANNUAL REPORT OF FEDERAL M ~ t-: RESERVE 0 ~ i ~ BANK ~ ~ ~ ~ )- ~ ;( t:: ::) H T N tC ~ ~ '1 CHA"R..T N21 4120,5,5 t-A"R-NIN4.5 CLA.551f l:t D !:Xl'f. N.5t5 AND NI:T I:A i2.N I/'IG.:'> 1-"..- ./ 12.!J If) P «.J -! 0 A JL 0 If) 100 ,,,.. ..•,.. ~o .~'" AA .•..•. ...•.,. \" u.v ~ i<: y ~~ ....~7 ,, L-.' . ~' /' 7 \v / .,.,~ 7 ~ .:::. /1 il V' .•.•... / .-/,,'<..~ ./. ~, / II ,, / / V i-t'--- /" / , I 'i i/ /i ,'I .•• ~' 4'" /'~ ' .... ,,0,•.r I <, I /J fj .5 I,t# ..,. OJ .-~ 2 // / / I I 0 A I •••• / ~~ J/ r-- /, ... , - r--.•••:J. 10 .~ 0 / •..~ -<~t -.._, // ,.;'!l ~7" ~ -# y ~y Z If) r-, 2.! Q « ,,,9 _ 20 --- / / •..'" V / VI VV V V ~ II "00 !2,,<,> 23 OF CLEVELAND. I 24 ANNUAL REPORT OF FEDERAL RESERVE BANK OF CLEVELAND. M ~ ~ n ! 0 ~ ~ ~ 4 ~ T N ~ .. 'r r ~ ~ ~ ~ ~ ~ S ~ ~ ~ i / QL :5 L / ---1 ./ 0 q J-. 0 ::, H ~ ~ p, ~ :n ...•..rA... V r--lp V / P CHA12..T N22 QtLATION Of-l2.I::VtMUr:P£ODUCING A,55I:T-5 .sTOCK. TO CAPITAL U) Z 0 ~ ----'1 --1 - L :0 .•••• 1 L.. A.V" ,. .••<;~ 0'- co piTA - ,,/ c--- ANNUAL REPORT OF FEDERAL RESERVE HUND12-tD5 Or100 MAk!CH ..3\~ Ap];!'IL .2..5"" MAY lOTI! MAY ~.5'r1'4 JUNt:So!!! AU<4U5T q!!! AUCju..5' ;Z 8!!! zoo BANK • ..500 GOO ~ • ~& CHA"R..T N<23 W/~~ I Or- ~ •• ~& ~~/. ~ ~ ~ W.A ~ ~ ~ ~ ~ W"~ ~ •• tj,,@~ r-- I NDtlTf:DNf:-S-':> ~ ill r-- Cf:"R..TIf"ICATt.5 50L1D= A LOTM.r-K HATCHtt)~ AHOUNi 5CoPTfM.I:>t~ \l~ i ~ '::>tPTc.M.I:>E];!.iII ;zo:;;~ ~ ~ oCTOl:>E:.R.. •• la~ ~ QCiO.J:>t.R. .• .24"!.!! NOVtMbtR.. ..30,. ..• 25 M1LLION5..••. 00 -300 OF CLEVELAND. r00'~~ ~/ff~; [;/~ ~ ~ ~~ ~. ~$~~ ~ffi ~///~ W//ff~ ~~ ~ 26 ANNUAL M U) .....1 ....J 0 A JL 0 OF FJ-:TJEHAL RESEHVE 0 % ~ < REPOHT ~ ~ N l.- ~ z ~ re< 1: C1 ~ :::> h ? t') OF CLEVELAND • H T -I ~ -c X ill BANK ~ .5 t U I') Z 0 - II) CHA12.T j NQ4 L L I (40Vt12.N M I:"Ni DtPO.5IT.5 I I r) N I II I I I I I 0 N I \ \ \ \ \ It') I II 1\ 0 lC) / ~ L c:a 0 ......J .....J ~ :z: 0 1\ (() 0 >0 ••• j .•.•... / / / "- ~ I J ""- i/ \ \ , \1' J I J ANNUAL REPORT OF FEDERAL /VI 0 RESERVE N BANK OF CLEVELAND. T H 27 I! 5 j II Q~~-+--~+-~-+--~~~-+~ o ~~+----l--l---+--+---+-----!---+-I/ Q I ~~~-4--~~~~--~~-+~-/~ CHA12T NQ.5 or- l--+-+j+-! ~1----+--1 MOVe M!:NT ." .,~~~ f't'Del2..AL 12.I:'5t12.Vt' ~-+~~ Hon:.:) AND ~OLD ~ 12.!:.5'L'R. VI:i to 2~~~~~~~~~p~ ~~+-4-4-~~~-+-+-41~#~ ~ 1:1 g~~I~-+--~+-~-+--~4-~W~~ ~~~~--~~~-4--+-~~.~~~~ ~ o ~' ~l ~~~~-+--~+-~-+--~4l;~~+-~ ~'l-----J-t.~~---t---I--~---+---4-~ .,-+---t-~~ ~~I~~~~~~~~e ~r-~~t-l-II-t-t-tlft·/t-iill~ If) z ~ 15': o ~ I~~ : ~_m e: ~ .~ .o~~ 1 .~~~ ~~~~ 28 ANNUAL REPORT JDXHIBIT A.-GI·oss OF FEDERAL RESRRVE BANK earnings, I Bills hought Bills discounted, members. Month, cuusttte«, United States securities. :~a~k:r. OF CLEVELAND. expenses, mul net eant'ings, Total expenses, Net earnIngs. $12,104.12 rs, 152.89 15,207.13 18,177. 89 20,214.55 23,006.16 20,731. 55 17,048.01 24,933.76 28,244.19 33,250.99 91,233.07 553,009.52 37,560.05 35,943.42 35,837.89 46,005.02 ;;0,076.21 58,010.11 90,042,02 92,796.76 130,151. 41 160,175.08 214,847.34 'I'otal earnings, All other earnings. 1917. January __.... _... $2,093.53 February ......... 3,633.21 March .... _....... 5,630.09 April ............. 7,587.62 6,145.43 May .............. June ............ _. 16, U8. 35 24,740.22 July .............. AllR\1sL ...... _._. 26,261. 09 25,779.67 September ........ October, _.... _... 34,794.80 November .. _..... 67,360.98 December. _..... '1155. 023. 91 Total....... EXHIBIT 820, .558.76 S17, 693. 35 $24,768.00 11,486.90 22.425.74 15,167.09 15,048.93 10.707.17 1~, 764 36 U,159.49 22,494.73 12,773.94 9.902.67 26,516.28 23,655.19 (.,042.67 22,653. '.17 28,267.88 5,103.09 19,804.09 29,091.26 6,139.90 22,979.42 51,709.62 2,079.48 26,105.75 63,765.62 56,421. 88 33,351. 16 6,827.76 8,438.52 29,306.82 88,619.75 4, 59S. 59 79,654 . .58 66,803.33 375,168.90 B.-Average monuis 317,924.42 1490,711.58 or dollars; '1'otal invested funds. Average rate. -January ............ _. February ............ March. __............. April. ............ _... May ... _... _._ ....... June ... _._ ........... July __ ............... August. ____ ......... September _.......... October ........ _..... November. .......... December. _.......... 2.84 3.00 2.98 2.81 2.92 3.03 3.18 3.18 3.22 3.29 3.47 3.79 19.079 20.633 19,356 21.958 25,904 28,780 28.719 38,649 43,720 44,611 65.010 93.554 Total invested funds. --- Bills bought in open market. January ........ _..... February _.. _.... _... Mareh .. __............ 981 976 1.122 I, 689 2.613 4,401 6,596 7,052 7,285 6,695 6,884 9.590 tf~~I .._.::::::::::::::: June ... _............. July .... _............ August ... __ ......... September .. _... _.... October .......... __.. November _... _...... December , .. · .. _· .. ··1 2.26 2.71 2.62 2.53 2.44 2.48 2.55 2,60 2.63 2.74 2.72 2.75 7,593 9.222 11.175 14,551 15,802 18.450 18.306 17.461 18.163 17.576 21,468 Bills dis- Avercounted, age' mem· rate. bers. Average rate. Municipal warrants. --- --- 1. 94 1. 93 1.92 1. 95 1. 99 2.06 2.14 2.25 2.33 2.41 2.41 2.58 1,973 2,670 3.112 2,987 2,891 1,554 1.237 1,075 33 12 12 11 -- --- 4.14 3.77 3,65 3.67 3.68 3.74 3.75 3.74 3.61 3.73 3.87 4.24 596 1,264 1,816 2,519 1.967 5.245 7.769 8,248 8.695 10,978 21, 200 43.105 Bills dis- Avercounted, age mem· rate bers. Average rate. -3.40 3.05 3.20 3.21 3,20 3.58 3.63 3.70 3.44 4.62 4.44 4.00 Mnnicipal warrants. --2.816 2,955 3.853 4.869 5.486 4.510 4,781 4,597 2,780 4.219 3,680 2.713 --- --415 272 254 436 284 277 420 282 598 371 272 1.206 ' 4.59 4.68 4.31 4.10 4.35 4.42 4.26 4.56 4.19 4.49 4.16 3.84 Average rate. --2.97 2.93 2.78 2.5.5 2.59 2.90 2.85 3,06 3.10 3.27 3.40 3.93 United States bonds. --7,792 6,822 6.850 11.427 12.101 10.995 8.778 9,821 11.015 13.475 12.000 24,263 Bills bought in open market. I A verage rate. -- --- 2.78 2.96 3.07 3.09 3.11 3.13 3.13 3.12 3.23 3.29 3.39 3.58 8,718 9,877 7.578 5.025 8,945 10.987 10.935 19.505 23,976 20.147 31. 790 26.175 1916 1917 1916 1917 1916 Month. --- 6.713 1917 1916 1917 Average rate. tor the 12 i.. e., 000 omitted.) 1916 1917 977,754.83 1,297,059.141319.304.31 107,254.24 ea'rning assets classified, and aceraae rates ot 1917 tuul. corresporuiimp months ot 19.16. (In thousands Month. 5&1,113.64 52,712.94 51,150.55 54,015.78 66,219.57 73,082.37 78,741. 66 107,090.03 117,730.52 131,395.60 193,726.07 306,080.41 Average rate. -2.66 2.90 2.59 2.48 2.58 2.50 2.66 2.75 2.88 2.91 2.97 3.24 United States bonds. Average rate. --- -2.501 3,390 3.994 4.181 6,167 6.614 6.653 6.375 6,799 6.878 6.739 7,960 2.57 2.65 2.54 2.56 2.39 2.38 2.63 2.60 2.62 2.65 2.53 2.40 ANNUAL REPORT OF FE)l)ERAL RESERVE BANK EXHIBIT B.-.il1:cl'age months earniny assets ·cla8~i.ficel, (md, a'vcra.ge rates for of 1917 and c01'1'csponding 'months of 19.16-Continued. __ .- ------_._-----------,----------,-----SUMMARY ----_. OF INVESTMENT the 12 OPERATIONS. 1916 1917 Dai1~SI~edffc~~;,i~d~~~~~~!s:d 29 OF CLEVELAND. _~~~~~~_ :~~:.' _ . {i~~~f~~'~~~~~an~~~.g.~~·.::::::::::::::::::::::::::::::::::::::: United States securities ............................•............. : Total........................... 'I'otal volume 01 business handled: $9,531,458.45 15,348,152.44 1,·157,325.80 11,314,574.40 $425,175.75 4,672,647.68 3,943,462.52 5,692,.>48.42 37,651,511. 09 14,733.834.37 I=====~==,I==="'==== !~~~f~~~;l:t~e~~~~~~.: :::::::::::::::::::::::::::::::::::::: 2~tt~:i~t gg i~; ~j; ~~: !~ "1 __ 6_9:.., 7_0_7:.,' _100_. _00___ 11..:,,_7_21..:,,_1_60_._00_ 1 United States securities Total.. ········ Average capital. Rate 01 gross earnings on capital. .. ·· •······· 374,941,472.72 6,433,207.00 20 .. ············ .. · . per cent. ·1 56,715,828.99 5,9S2,695.oo 7.17 C.-Statemcnt ot condition. ot the Federal. Reserve Btnik. ot Cleve/rmd at the close of tnisimess, Dec. 31, 1917, conuxued. with Dec. 30, 1916. EXHIBIT ----------- ---R~;SOURCES. \1 Bills discounted, members .....................................•....... Advances to. members on eligible cnllateral . ............•.......•........ Aeceptnnces-bouzht U~~i~~~Set~\~ss~g~~;i,~I:,~~i~~~1W:~:obligations 1 ·. ···1 ···1 a:~~:~~ ~~~~~: i~~L:::::::::::::::::::::::::::::::::::::::::::: 2percent bonds (COD sols and Panamas) ·.···· 3 per cent one-year Treasury notes. .. 3 per cent conversion bonds........................... 3! per cent first Liberty loan bonds 4 per cent second Liberty loan bonds 4. per cent United States Treasury certificates June 25, 1918............ ...• ····· .. ·· .. ·. ·· due of indebtedness 1_9_1_7 __ -r-__ $37,163,027.27 33,733,150.00 21,111,990.951 7,233.38 1_91_6_ $1,006,773.50 .. 10,153,694:75 2,684,589.64 473,600.00 I 2,403,900.00 ~:g?g;3:~ U~~:~:~ 3,221,000.00 414,800.00 2,027,000.00 320,750.00 50,000.00 618,000.00 1,800.00 I .. ............. 21,824,517.89 Totallunds empl?yed : , -103,554,411.60 297,660.08 Accrued mterest on United States secuntlCs............................ 62,878.48 39 544 25 · ................. Cost of unissued Federal Reserve notes · .. ·· 20: 163.92 · ................. Furniture and equipment. ..................................•......... 934.76 · ................. Expense paid in ad vance ·· .. · · ····· 14,921,032.18 45, 176, 685, 19 Due from other Federal Reserve banks ..........•.......•............. 129,610.22 11,792.01 Due from banks and bankers . 2.3,162, 771. 93 10,417,595.49 Deferred debits ·.···· .. ··· · .. · ·· 15,761,382.50 29,153,275.00 Gold coin and certificates ou hand .............•.............. . 16,953,000. 00 37,664,000.00 Gold settlement fund ····· .. •·· .. ········· 42,250.00 98,800.00 Gold re~em.rtion fund . 10,832,305.00 55,369,700.00 Gold WIth Federal Reserve agent. ............•........................ ................ 4,725,000.00 Gold with foreign agencies · ····· · .. · 484,417.00 238,369.00 1 egal tender notes and silver certiflcates ........................•..... 588,935.00 3,666,525.00 Federal Reserve notes 011 hand ..................................•..... 91, R16.77 1.081,302.20 Other cash and coin · · · .. ··· 140,000.00 866,265.00 Mutilated currency forwarded lor redemption - ......•..... 68,051.154.98 ................ Due from depositary banks and trust companies I .................•... 28,554.65 139,247.83 Other resources :. . :1 'fatn] resources. _ _ ,_ . LlAllILlTIES. Capital paid in ........................................•............ Profit and loss · Unearned interest and discount United States Government deposits Due to member banks (reserve account) Due to nonmembcr banks (clearing account) Due to other Federal Reserve banks Deferred credits : Federal Reserve notes outstanding Treasurer 01 the United States (special deposit account) Treasurer 01 the United Stutes (Liberty loan deposit account).......... Other Iiahilities........................................................ Total liabilities... .. ' .. . . . · . . . . . 373,022,178.22 6,021,800.00 8,026, ioo. 00 94,797.44 132,311.58 37,978.59 190,643.23 974,809.73 30,578,247.23 54.586,226.61 109,724,561. 05 94,160.59 20 33,970,479.80 ..'ii,263; 8,759,174.62 16,553,514.19 10,832,305.00 105,66~, 700. 00 34,242,190.00 . ............... 33,809,004.981 . 31,305.57 3,491. 52 ian.' 373,022,178.22 I War loan deposits. 92,573,719.71 92,573,719.71 30 ANNUAL REPORT OF FEDERAL RESERVE BANK EXHIBIT D.-PTOjit OF CI;EVELAND. lmd loss a-ccount. 1917 Profit and loss balance Dec. 30, 1916 Earnings fromBills discounted, members Bills discounted, bankers' acceptances Municipal warrants Interest carned on United States securities Profits realized on United States securities Sundry earnings, including service charge transit department, exchange bought and sold and Total . Total. Percentage 1916 1917 . $94,797.44 . . . . . 375,169.00 496,711. 58 48,131. 73 317,924.42 24,260.69 . . Expenses: Assessment for expenses of Federal Reserve Board Cost of Federal Reserve notes issued Cost of unissued Federal Reserve notes Premium on United States bonds and securities charged of]' Operating expenses including amortization of furniture, vault equipment and other accounts Dividend paid Profit and loss credit balanee and 1916 318,064.41 106,993.11 116,925.13 . 144,843.65 37,228.53 .5,101. 50 63,145.30 1----------·1--------1,420,140.16 429,156.33 I=~==I==~~= . . . . 25,783.40 72,280.77 18,975.62 209,469.52 . . . 245,150.97 716,168.30 132,311.58 ......................................•...................... . .............. ............... 5,870.44 . .............. ............... 185,251. 94 143,236.51 94, 7~7. 44 429,156.33 1,420,140.161 of net earnings to average capital: EXHIBIT 3.98 '15.2 E.-ResoU1·ces ot member' ba-nks. -----------------------------------,---------.--------. Nov. 20, 1917. Member banks, total resources Deposits: Demand ............................................•.......... Time ..........•.•............................................. COMPARISON OF DEPOSITS .'.....•............ OF THE MEMBEH CITIES IN DISTRICT BANKS NO.4. Cincinnati. / ~~~~~~~gl::::::::::::: :::::::::::::::::: ::::::::::::::::::::::::::: 1 Includes three Staie banks admitted IDX.HIBrT F.-Opera-tions in,discounts to membership Nov. 17,1916 . $1,985,977,000 $1,498,515,000 1,172,813,000 402,519,000 930,705,000 235,112,000 IN THE THREE $108,893,000 318,680.000 411,214,000 I department, 1917 M~~~~~sb;';;k coli;'ie~ai notes: SeCUre(! by eiiiil;ie j,aper::::::: Classification by maturities: Within 15 days... 1.6to 30 days. 31 to 60 days. .. 61 to 90 days. Beyond 90 days ....•...... Average rate per cent: 1917 1916 . _"_'_2,..:.'3_8_5..:.: 0_' 00_'_.'00_" 212,176, lOS. 36 6,792,429.30 147,846,219.88 26,101,442.96 18,773,616.49 19,386,885.84 6_7.:..,_94_°_. _19_ . 2,288,100.00 3,203,600.00 778,100.00 37r" 000. 00 1_46..:.' ,_60_0_. __ 00 212,176,105.361 '; M, 232, 244. 04 175,185.26 gg..:.:_~_~_~,..:.'~_g_8_:8_8_\_'_'_' :I 1 'fotal.................................................... 1916 $72,948,095.22 4,400,589.19 167,575.28 15,126,195.67 Total..................................................... $97,411,000 146,409,000 315,130,000 <luring 1917. and investments Bills discounted, members: Commercial and industrial. . Trade acceptances . Agricultural and live stock . Rediscounts, secured bv United States obligations •............ Member bank collateral notes, secured by United States obli- LARGEST 1 6,792,400 00 3.29 4.25 ANNUAL REPORT OF FEDERAL BANK G.-Discount EXHIBIT MEMBER RESERVE BANK 31 OF CLEVELAND. rates. COLLATERAL NOTES. 1 to 15 days. Secured Secured by by ellglUnited ble States sepaper. curities. In Iorce=- Jan. 1. 1917 May 10. 1917 Sept. 25. 1917 Dec. 1. 1917•••.......................................................... , - REDISCOUNTS-COMMERCIAL 3! 4 PAPER. 1 In force- -------------------- to 15 days. 16 to 30 days. 31 to 60 days. --------- ~~~~mY: ~~~~~~~~~~~:~~~~~~~~~~~~~:~~I 1 'fRADE 3t 3t . ··· ·· .. · ··· ·.· .. ···· .. · · t i: !! I 61days. to 90 --- if ACCEPTANCES. 1 In (orce- --------------------- 16 to 30 days. 31 to 60 days. .61to 90 days. --------- 1 Ian. 1. 1917........................................•............ Apr. 16. 1917.. Dec. 10.1917................................................... to 15 days. 1 3 3t 4 3 3~ 4 3! 31 4 ----------------------~--~- 4 4 4 --I_--_- AGRICUL'l'URAL AND LIVE-STOCK 1 to 15 days. In Iorce-; PAPER. 16 to 30 days. 31 to 60 days. ----- -----Jan. 1. 1917 . t~~ f~·f~tr:: ::::::::::::::::::::::::~:::::::::::::I 3t 3} 4 4 4 !t I 3t 61 to 90 days. Beyond 90 days. ------ ----- 4} 4 4 4t 4~ 16 to 30 days. 31 to 60 days. 5 5 5 5 4! 4! 4It I ------------~----~----~------~----~---COMMODITY PAPER. 1 to 15 days. In force- ------------------------.--- --------1------ ----- Jan. 1.1917 Apr.16.1917 .••................................................ REDISCOUNTS SECURED BY UNITED . STATES Iune 15, 1917•.................................................. Sept. 25.1917 Dec. 10. 1917•••................................................ 1 to 15 days. Open-market purchases of bankers' acceptances: In forceJan. 1.1917 •.................................................................... Dec. 1. 1917 . ------ 3t 4 GOVERNMENT In force- ----- 61 to 90 days. SECURITIES. 16 to 30 days. 31 to 60 days. 3t 3t 4 4 4 4 per cent. do 61 to 90 days. 3t 4 4 2t to 4i 3 to 4 32 ANN UAL REPORT 0];' FEDERAL RESERVE BANK 0]' EXHIBIT H,-Bills bought in 01Jenmarket CLEVELAND, (a·cceptcmces). 1917 -------- 19I6 ------.------ Bankers, export and import.......................................... Bankers, domestic Dollar exchange bills.. ,............. ~~~~j~S~i~r~~~d:'C~~£~~~~;'es" ~~::~:::::::::::::::::::::::::::::::::::: 'I'ota.l . $73,538,033.79 15',195,883.59 64,675.00 1, r~~; ~~: ~~ $27;237,096.49 304,905.75 1------1--·--- . Olasstication by maturities: Within 15 days............. .•.. .. .. ..•... . . . ....•. . .. . . 1Gto 30 days.. ......•......... 31 to GO days........................ ..••.............. .•.•....... 61 days to 3 months... .......•.......•.•...............•......... 91,109,193.06 27,542,002.21 3,190,925.72 11,318,35(;.10 26,055,907.18 50,544,004.06 1,542,425.48 5,788,427.94 20,211,148.82 HI, 109,193.061 27,542,002.24 1------1 Total...................................................... Average rate per cent: 1917,3.23; 1916,2.29. EXHIBIT 1.-OP(lI'(LUi)//8 ·ill Uilitell »ecurities, 8/(I/e" I i On I -------------------------1 United States Government Unncd Stutes Government 2 per cent con~ols...... 2 per cent Panamas .... hand Dec. 30, 1911;. i . $903,900 . .... . _.1 1,500,OUO uir~~e~L,~j~~e~~. G.~~er~e~t .. 2. pe.r.. ~~nL.cer~iJi~~~~S.Of.l............ United States Government 3 per cent Spanish war 10an'l 2,586,500 United States Government ;1per cent I-year 'I'reasury notes , -........................ fi18,000 United States Government 3 per cent 30'year conversion 1 1917. Sold, paid, and converted during 1917. Purchased during 1917. j-----I1 $66,400 J, 230, 500 3,500,000 67,100 $963,900 2,25.1,300 3,500,000 .... · ...... 1,694,000 u~ft~~S States'i.i~~.~~;;,~!C~i·:i· p~'r' '~~~t' c"i.iiftcates· ~'f'l 1,800 1,616,200 Indebtedness _. _. _ _.. _. _.. . _.. __ :.. _ _ 4,645,000 United States Government 3} per cent certificates of 1 indebtedness I....•.. 124,000 United States Government 3} per rent certificates of indebtedness . 1,460,000 United States Government 3t per cent Liberty loan . 2,280,700 United States Governent 4 per cent bonds of 1925....... 2,369,200 92,700 United States Government 4 per cent Liberty loan . 504,000 United States Government 4 per cent ccrtlficates of indebtedness . 15,827,500 Unlted States Government 4 per cent certiflcatcs of indebtedness, held under sale and repurchase agree- 1,203,200 4 I $6,400 467,200 ·1 4,297,000 -_ 1 ..... __ .. 2, G53, 660 3,221,000 414,800 (i45', 000 124,000 1,460,000 2.53,700 83,700 183,250 15,777,500 '-'-"--'" 2,027,000 2,378,200 320,750 50,000 6,000,000 28,000;000 :1-"-;-: 9-';-~-:-~GO.. -·I-:-::-~-1-1-:r;o-00-·+----+---38,151,550 39,539,010 men~~~~;...::::::::::::::::::::::::::::::::::::::::::: EXHIBIT J.-Municipal ioarront« purcluised. 1917 City............................................. State.... ......•................•..........•.........•.•.......•........ County. . ...........•.•.........•...•...•.........•..•.•.....••.•...... Other ' . ........•.•.. 'I'otal , On hand Dec. 31. 1917. . Classification by maturities: 16 to 30 days. .........................•............................ 31 t060days....................................................... 61 to90days....................................................... Beyond 90 days to 6 months. . ...•.......•........••.•........•.... Total. . ...............................•..........•............... A verage rate of earnings, per cent: 1917.......................................•.......•...........................•...........•..... 1916..........................................................................•.................. $2,846,166.00 5t, 803.22 51, !OS. 08 1916 $10,051,988. 7~. 260,028.0~ 172,8'15.36 175,375.35 1-----------1---------2,949,074.30 10,660,237.45 2,562.50 5,129.16 692,427.16 2,248,955.48 381,633.20 2,221,525.66 497,590.0~ 7,559,488.57 2,949,074.30 10,660,237.45 1-----------1---------- 3.30 2.97 ANNUAL HEPORT OJ" FEDERAL l;;XHlBIT K,-C/tanges Month, in the '/'csel"ve position I -I January ..................... February .................... ~~~~~:::::: :::::::::: :::: :::1 June ..... --_ ................. July ......................... August ......................... September ................... October. .................... .November Rl~SERVE , .................. December ................... Required (35 per cent), I Per cent, $44, 5B5,102. 35 41,875,468,60 46,497,955. 45 41,690,550.30 48,165,198.00 80,637,413.80 85,612,601.80 90,415,959.50 72, 264, 7~0,85 80,024,612.10 90,934,366.65 71,"180,815.85 L.-ilIembm· OF CLEVELAND, 78,5 12.8 74.5 67.2 67,2 76.5 51. 6 80.3 74.8 76.2 67.9 58,9 Per cent. Excess, 1 43.5 37.8 39.5 32.2 :12.2 41. 5 46.6 45.3 39.8 41. 2 32.9 23.9 $24,711,858.90 21,734,520,85 24,667,462.15 20, 002, 728. 90 2;,100,173.00 43,748,397.96 48,901, 834. 94 51,027,831. 61 38,486,614.13 43,245,652.23 44,104,294.69 29,143,595.80 banks, district. NO.1. Number of member banks, Dec. 31, 1916___ New national banks organized_____________________________ State banks and Trust companies admltted__________________ Closed by Comptroller Liquidated 33 ot the lianl.; cit/ring the year. Carried. I 5[9,883,243.45 20,140,947.75 21,830,493.30 21,687,821.40 25,065,025.00 :;6,889,015.84 36,708,766.86 39,:188,127.89 33,778,156.72 36,779,019.87· 46,830,071.96 42,637,220,05 EXHIIlI'I' BANK 75;-: 2 12 of the Currency 767 1 2 3 Number of member ban ks .Tan. 1, 1918_________________________ Distribution: In reserve dties______________________________________ 50 In other tha n reserve clties____________________________ 714 Total .__ Total capital Stock allotted stock Dec. 31, 1916 member banks for quarter 704 7A4 $12.04:1,flOO endlng- $~~~:~gg Dec. 31, 1917 3,135;90n lr~~i.h3j~~ii~I~~====================================== Total Stock surrendered - 4,039,600 _ ](1.08:1,200 I~~· 3if.', liil~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total rota! paid-up subscrrpttons capital quarter stock ending- 10,400 11,600 6,100 2,900 Dec. 31, 191 L_____________________________ capital stock Dec. 31. 1916_____________________________ paid In quarter endlng-c- ir~~e310, li~I7======================================= Dept. 30, 1917________________________________________ ec. 31, 1917 Total Cash subscriptions In 1-'- 6,021, ROO 1~~:J~g 215,650 1,567,950 _ refunded for surrender of stock quarter end- Sept. 30, f~f+======================================== 1917 ~ _ J~a:e~~: De~ 31. 1917 _ Tota! paid-up capital stock Dec, 31, 1917 ai. ooo 16,052,200 5,200 5,800 3,050 1,450 _ 2,019,800 8,041,600 15,500 8,026,100 34 ANNUAL EXHIBIT REPORT OF FEDERAL M.-A.ccO'Inmodation RESERVE BANK OF CLEVELAND. of member bunlos thrtnut]: d'isco'unt of paper. Banks accommodatcd. 1917 -------------- 1916 ·------1--- 1917 --- Kentucky Ohio . . fV'~~s~l::i~i~: : : : : : : : : : : : : : : : : : : : : :: : : : : : : : : :: : : : : : : : : : : : : : : : : : Total. . 1916 --- 12 102 44 2 8 32 9 160 50 --70 974 153 9 1 1,206 60 152 26 2 240 'fotal pieces handled in 1917 14,050; in 1916, 1,401. Amount of smallest note or ill rediscounted, $28.85. Amount of largest note or bill rediscounted, $13,500,000. 6 EXHJB1T N.-Il'il·St Libel·ty loan of 1917. Subscnptlons. ---_·_·_--·----1----Class A, $50 to $10,000. ...•............ $128,811,700 Allotment. ----5128,811,700 g!~~~ ~\~~~i~i~:~~~6:~.:.::::::: :::::::::::::::::::::::::::::::::::::: ~~;!t~:~i~;m:~~ 'rotal. . . . . . . . . .. .. .. .. EXHIBIT O.-Second Liberty -------1-------286,231,000 loan of 1917. Number 01 Amount of subscripsubscriptions. tions. 8l~~~ ~:~fg,~~~t~,~g:oo<).·.:::::::::::::::::::::::::::::::::: Class C, $50,050 to $100,000 Class D, $100,050 to $200,000 ~,~~~ s~ic~~~:O~~ .~I.l~. Total. . . ~.p::::::::::::::::::::::::::::::::::::: . ,............... Date of Issue. ttar. 25 .......•...... ay 10 .............. May 25 .............. June 8............... Au~, 9 .........•..... Aug. 28 ..........•... Amount. 12G8,205, 000 200, 000, 000 200,000,000 200,000,000 300,000,000 250, 000, 000 Allotment. $14,000,000 15.000,000 10,800,000 19,100,000 33 592 000 2-t: 157; ooc 783,972 2,844 549 218 199 1,265 1-----1-----789,047 I£XHIBIT P.-Cel·titicates I 203,300,050 $172, 996, 050 79,545,600 '18,3.12,850 35,487,950 136,598, ROO 13, 125,550 486,106,800 Allotmcnt. $172, 996, 050 79,545,600 43,553,700 26,732,700 74,398,850 13,125,550 ----------410,352,450 ot indebtedness. Date of issue. Sept. 17.............. Sept. 26 ............. Oct. 18 .•............ Oct. 24 .............. Nov. 30 .............. 'Amount, $300,000,000 400, 000, 000 385,197,000 685, 296, 000 b9l, 000, 000 Allotment .. 124.180,000 34,209,000 38,863,000 26,471,000 115,230,500 ANNUAL REPOltT OF ~'EDEHAL RESEiwE Q.-Rediscmmts EXHIBIT BANK of paper secured by Government Member bank collateral notes Rediscounts fJ'.c~~'b~;ds{;~CN~T~:ds and certificates. May June................. July................. August. September find certificates. $49,250.00 &58,209.25 510,123.75 . . 1 $[WI,000. 00 I October ...........•. November 1,957,000.00 2,210,000.00 I December 7,025,000.00 Total....... 9,018,000.00 EXHlBIT R.-Govcrn'/lu.mt ... securities. Rediscounts secured by U. S. bonds and certificates. Member bank collateral notes secured by U. S. bonds and certificates. $7,542.50 8,594,8.13.03 5,106,237.14 $12,885.000.00 13,574,250.00 18,870,300.00 15,126,195.67 66,089,550.00 . . I deposits, 1917. 18,272,174.61 11,136,745.93 6,499,959. 71 12,719,069.72 22,179,485.22 30.57~641. 65 July AugusL September October November Decmnber $1,216,035.12 ~~~~~~~y~~~~~~~~~~~~~~~~ 712,815.21 March _ 3,913,251.22 April May June _ _ _ 6,597,627.26 5, 182, 731. 99 3,293,614.65 EXHIBIT S.-F'edm·al COVER Reserce notes. OF NOTES Gold coin and eertificates United States Treasury gold order certificates Gold redemption fund with United States Treasurer Credit balance with Federal Reserve Board Paper held as collateral for Federal Reserve notes (actual ISSUED. - amount, .. OF FEDERAL RESERVE NOTES ISSUED, STANDING, NOVEMBER, 1914, '1'0 DECEMBER Fives ...................•.•.................................. Tens .....................••...................•.............. Twenties ...........................................•.......... Fifties •...................................................... Hundreds . Total. . Returned for destruction Returned lor destruction Returned for destruction Cleveland __.. _ by Federal Reserve agent.......... by other Federal Reserve banks by Treasurer of the United States __.. _. . . . . . . . . .. . . . . . . FEDERAL RESERVE NOTES . 105,669,700 AND Destroyed. 52,672,250 2,931,940 2,934,860 2a9,25O 152,000 114, 660,000 8,990,300 and HECEIVED Federal Reserve _ ;lND $8,947,750 23,708,060 51,865,140 15,700,750 5,448,000 il--1-05-,-66-9-,-700- Bank _ _.. of -------- " Received from. .: I Returned to. Exchanged Reserve $720,000 781,955 8,008,345 __.. _.. 8,910,300 RETURNED. (Amounts of Federal Reserve notes received from other Federal Reserve Banks for rcdcmptlcn and returned to other Federal Reserve banks lor redemption or credit by the FederalReserve Cleveland for the period Jan. 1 to Dec. 31,1917.) Exchanged with Federal Reserve Bank 0(- OUT- Outstanding. $11,620,000 26,640.000 54,830,000 16,000,000 5,600,000 .. Total. .... . . . . DESTROYED, 31, 1917. Issued. Denomination. $5,804,545 9, no, 000 5,455,155 35,000,000 50,300,000 ·· $51,254,883.29) required Total.... DRNOMINATIONS 35 O:F CLEVELAND. with Federal Bank of- Received from. or credit Bank of I Returned ' to. -- -.. -_·-----11---------- Boston _ NewYork Philadelphia Richmond. __. .. .•........ Atlanta ...........•...... Chicago.................... St. Louis. . : SI52,900! 1 1,720,700 , 835,000 . 133,950 __j 282,150 1,178,650 226,705 536,4151 1,216,800 247,995 100,600 72,180 418,040 \!,1,02O Minneapolis Kansas City Dallas _. __ San Francisco .... Total. _. _. _. _. . . SlIti,030 66,740 :19,410 36,840 5, 175 740 J 2,5:14,070 30 ANNUAL REPORT OF FEDERAL RESERVE T.-C/tl(fri·l/g~. l£XHIIHT BANK OF CLEVELAND. 1.'1/1'. I DHiIy a vcrage. I Number items. ____________ of Number ,. ~~?)~I'~I~{~);":: ~::::::::::::::: ~::::::::: .. :.. ' . March April.. May June .. _.......................•.......•...... July August September October Novernber _.....................•......... December. . . . . . . . . Amount , ,. 435,384 16,745 16,431 16,83(j 17,365 18,H6 18,935 18,548 17,392 20,897 21,248 22,500 2'1,824 $21.8,777,981.82 186, 342, 030. 19 236,308,813. 73 248, 982, 01l5.96 299.213,801. 47 355,994,450.53 379,3011,461. 52 368, 449, 7.6.41 338,747,136.48 412,879,353. 88 434,818, 4.Y1. 55 I 452,2:1;1,367.85 I 3n,911 45,1.580 434: 129 471,797 492,316 463 713 469; 594 522,431 573,698 58", 016 62-0,591 of I Amount. l _ '_t_e.m_s_· II . 8.414,5.17. 76 8.101,827.40 8, 752, 178. 28 9,959,283. 83 11,508,223. 13 13,692,094.25 15,172,378.46 13,646,288.01 13, 549, 8&'). 45 15,Z91,82i.92 16,723,786.71 18, (l89, :134.72 1 Total number Total amount of items handled handled . 5,901,160 . $3,932, 05ti, 724. 39 $83,491. 98 , 1. 41 . 2.12 1.5 . &~~i)~)~sren:,e~tf{a~'~t~cf~: .De~art.rne]~t::::::::::::::::::::::::::::::::::::::::::: :ccnis:: Cost per gl,OOO................................................... Ser vire charge pCI' item - _..... _. _ . _... do do . U.--·Montllf!J t ot als of debit« and credit» to the Federal of Ctevetoaui 'in the gold settlement tusui. EXHIBIT Resercc Bunk. ------------------------------------------------------Deblts,191,. January Februarv . March .. : .. April. . Ma~l . 0 ._. _ ••••• _. __ __ ••• __ _.. _ • _. __ •••• _ . ~~t~I~~'::::' .. :::.::.;~~::.:: ·~:: ..I November December. _.. . 'I'otal.. $77, 036, 000 71,849, 000 105, G15,000 96,190,000 170, 16S, 000 176,745, 000 203, 455, 600 233, 538, 000 177,29;1,000 206, 195,~OO 338. 08·', 000 334, 888, 500 ......1------. .. . Credits, 1 1 1917. S67, 437, 000 72. 001, 000 J03, 575, 000 1 101, IS';, 000 1 164, 70i, 000 ' Vi5, 822, 000 206,037,000 223,541.000 193,5(;8,000 190, 039, 300 325, Oil, 600 3:"}8, 057, UOO 1 2,191.357,900 Debits, 1916. 2, 170,646,900 I $4,868, 000 4,163,000 8,290,000 6,440. 000 8,418, 000 J.1, 904, 000 12,714,000 32.241, 000 41,02-1, 000 .>0,2i5. 000 57,217,000 70, 90S, 000 :108,'129,000 Balance Dec. 30, 1916.....•.............................. 13"10"('0 Dec, 31,1917 .... Powers granted. Trustee only .-. . . . .. .. . . . . Registrar of stocks and bonds. . .. .. .. .. . .. .. .. .. . .. .. . Trustee and registrar of stocks and bonds. . . . Trustee, executor, administrator, and registrar of stocks and bonds........ Tota\.. / Credits, I 1916. S5, 35G,000 4,3.6,000 6,366,000 J, 3G7,000 11,919, 000 12.,030, 000 1:1,822, 000 30,77:3, 000 43,219,000 '19,017, 000 65,162,000 67,963, 000 314, :140,000 $16.953. 000 37,664, 000 Pennsylvania. Ohio. 3 3 1 --------- -----1--- Ken· II tucky, West VIr' ginia. I. ~I--------- Total granted since organization. Tota\. 1 3 3 6 5 If -----8- --;g 1 •••••••• " ~"