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Fifth Annual Report
Federal Reserve Bank
of New York
For the Year Ended December 31,
Second Federal Reserve District
YORK AND SAWYER, ARCHITECTS
DESIGN FOR LIBERTY STREET FACADE. NEW BUILDING. FEDERAL RESERVE BANK OF NEW YORK
Fifth Annual Report
Federal Reserve Bank
of New York
For the Year Ended December 31
1919
Second Federal
Reserve District
LETTER
OF
TRANSMITTAL
FEDERAL RESERVE BANK
OF NEW YORK
New York, February 1, 1920.
SIR: I have the honor to submit herewith the fifth annual report of the Federal
Reserve Bank of New York, covering the
year 1919.
Respectfully,
PIERRE JAY,
Chairman and Federal Reserve Agent,
Hon. W. P . G. HARDING,
Governor, Federal Reserve Board,
Washington, D. C.
Table of Contents
PAGE
Directors a n d officers
I.
Review o f1919
II.
B a n k
operations
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Fiscal agency operations
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1 - 1 2
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24-26
27-30
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35-38
39-40
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4 1 - 5 4
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4 1 - 4 3
43-49
49-50
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5 1
52-53
53-54
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Certificates of Indebtedness
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Victory Loan.
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W a r Savings a n d Post-Loan Activities
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Government Deposits
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Deliveries, Exchanges a n d Conversions
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Government Disbursements
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Appendix
2-3
5-10
Statement of Condition .
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Earnings a n dExpenses .
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Investments during 1919.
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Acceptances a n dt h eDiscount Market
N o t e Tssues
Collections a n d Clearings
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.
Relations with Banks
International Financial Arrangements
Foreign Exchange Regulations.
.
Organization of t h eBank
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T h e Buffalo Branch
III.
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.
55-99
Federal Reserve Bank
of New York
DIRECTORS AND OFFICERS JANUARY 1, 1920
Directors
PIERRE JAY, New York City
GEORGE FOSTER PEABCDY,
Chairman
JAMES S. ALEXANDER, New York City
Saratoga
Springs, N . Y.
Deputy Chairman
LESLIE R. PALMER, Croton-on-Hudson,
CHARLES SMITH, Oneonta, N. Y.
N. Y.
CHARLES A. STONE, New York City
WILLIAM L. SAUVDERS, Plainfield, N. J.
ROBERT II. TREMAN, Ithaca, N. Y.
Member of Federal Advisory Council
A. BARTON HEPBURN, New York City
Officers
GENERAL OFFICERS
BENJ. STRONG, Governor
J. HERBERT CASE, Deputy Governor
Louis F . SAILER, Deputy Governor
DUDLEY H. BARROWS, Secretary
SENIOR OFFICERS
J. HERBERT CASE,
Controller of Foreign Relations Pro
tern., Controller of Loans Pro tern.
LAURENCE H. HENDRICKS,
Controller of Collections
JOSEPH D . HIGGINS,
Controller of Cash and Custodies
ARTHUR W. GILBART,
Controller of Administration
LOUIS F. SAILER,
Controller of Fiscal Agency Functions
pr0 tem^ Controller of Accounts
Pro tern.
EDWIN R. KENZEL,
Controller of Investments
CHANNING RUDD,
Controller of Government Loan
Organization
DIRECTORS AND OFFICERS JANUARY 1, 1920—Continued
JUNIOR OFFICERS
GILBERT E. CHAPIN,
J. WILSON JONES,
Manager, Loan Department
Manager, Government Bond Department
CHARLES H. COE,
ADOLPH J. LINS,
Manager, Check Department
Manager, Government Deposit Department
JAY E. CRANE,
Manager, Foreign Department
WALTER B. MATTESON,
Manager, Certificates of Indebtedness
Department and Manager, Securities Department
RALPH T. CRANE,
Manager, Member Bank
Department
Relations
HENRY R. MURRAY,
WILLIAM H. DILLISTIN,
Manager, Bank
Department
Manager, Collection Department
Examinations
ROBERT M. O'HARA,
Manager, Bill Department
BETHUNB M. GRANT,
Manager, Government Securities Sales
Department
JOHN E. RAASCH,
Manager, Planning Department
LESLIE R. ROUNDS,
WILLIAM A. HAMILTON,
Manager, Accounting Department and
Manager, Disbursing Department
Manager, Cash Department
HOWARD M. JEFFERSON,
Manager, Personnel Department
WILLIAM M. ST. JOHN,
Manager, Custody Department
I. WARD WATERS, Manager, Service Department
FRANCIS OAKEY, Acting General Auditor
HARRY ARTHUR HOPF, Organization Counsel
Federal Reserve Agent
PIERRE JAY, New York City
SHEPARD MORGAN, Assistant Federal Reserve Agent
Buffalo Branch
DIRECTORS
HARRY T. RAMSDELL, Buffalo, N. Y.
ELLIOTT C. MCDOUGAL, Buffalo, N . Y.
CLIFFORD HUBBELL, Buffalo, N. Y.
FRANK L. BARTLETT, Olean, N. Y.
RAY M. GIDNEY, Buffalo, N. Y.
RAY M. GIDNEY, Manager
WALTER W. SCHNECKENBURGER, Cashier
Fifth Annual Report of the
Federal Reserve Bank of New York
REVIEW OF 1919
Business and Credit Conditions
T
HE Federal Reserve System commenced operations several
months after the European war had been in progress,
and 1919 was, therefore, the first entire year in which it
operated free from the overshadowing anxieties of war. But though
actual fighting had ceased before the year opened, disturbed conditions of industry, labor, credit and prices, such as usually follow
in the wake of a great war, were very much in evidence throughout
the year. The unemployment of the winter and spring months,
due to the sudden cessation of war industries and the rapid return
of our soldiers and sailors, was followed during the summer and
autumn by an active demand, both domestic and foreign, for goods
of all kinds. This soon turned a labor surplus into a labor shortage, still further increased both prices and wages and encouraged
an unprecedented series of strikes which greatly retarded production and distribution when demand upon both were at their heaviest.
The higher prices realized and the higher wages received in nearly
all parts of the country gave rise during the autumn to extravagant
purchases of all kinds of necessities and luxuries without regard to
price. They also induced a reckless and widespread speculation
for the rise in securities and real estate, as well as in many
commodities, not merely raw materials but even semi-finished and
finished goods. Throughout the latter half of the year the supply
of most goods has been wholly inadequate to the demand; competition in most industries has been non-existent, and the insistent
demands of a class of buyers without experience in prices and determined to satisfy their desires regardless of price, have resulted
in a seller's market. The year closed with the speculative demands
for credit somewhat decreased but with the demands of industry,
6
FIFTH ANNUAL REPORT
at ever increasing price levels, absorbing the credit released by
lessened speculation. The credit reservoir was at its lowest point
and average commodity prices at their highest.
The Relaxation of War Restrictions
During the war, as at present, there was a shortage of goods and
labor. Then the Government was the great insistent buyer whose
demands had first to be filled. To meet the situation the banks
were asked to discriminate in their credits against less essential production and distribution and consumers were asked to forego less
essential consumption. But it was not until the Government took
control of materials, allocating them to the more essential industries,
and supervised to some extent the movements of labor, that effective
reduction of less essential production and distribution was brought
about. Issues of new securities were rigidly restricted by the
Capital Issues Committee and speculation in existing securities
was held in check by cooperative action between bankers and stock
exchanges.
The prompt withdrawal of the Government, after the armistice,
from the control it had exercised over materials and labor was soon
followed by the withdrawal of restrictions on the issue of new securities and dealings in existing securities. Natural laws again became
operative. The desire for comforts and luxuries, held in restraint
for a year or more, reasserted itself, and large profits, high wages
and sales of Government securities provided the necessary purchasing power. The immense demand for goods led many industries
to increase their plants and finance themselves by issuing securities.
The desire to speculate, also held in restraint during the war, asserted
itself not only in the stock market, where securities rose to new
high levels in an adjustment of prices to the immense profits which
many industries were realizing, but also in real estate and many
commodities. And many of the millions who, during the war, had
learned their first lesson in investing in securities fell an easy prey
to sellers of doubtful or worthless securities which promised higher
returns than the Liberty bonds taken in exchange.
Rising Demands for Credit
The intense activity of the last six months of 1919 in goods and
securities, with constantly rising prices, was facilitated by the credit
situation. The policy adopted by the Government during the war
of paying low rates of interest on its borrowings, whether funded
or temporary, necessitated the adoption of a correspondingly low
rate policy by the Federal Reserve Banks, in order to facilitate
the sales of Government securities. These always exceeded in
FEDERAL RESERVE BANK OF NEW YORK
7
volume the savings available at the time and, therefore, could only
be absorbed through recourse to bank loans for a considerable
part of every issue. In fact, "borrow and buy" was one of the
slogans common to all of the later loan campaigns. During the
war, with production, consumption and speculation all held in
check by Government control or patriotic restraint, the low rates
offered little temptation to unnecessary expansion. But with
Government control and patriotic restraint both removed soon after
the armistice and with the successful floating of the Victory Liberty
loan in May, coincidently with the passing of the winter's unemployment and industrial readjustment, natural forces and impulses
vigorously reasserted themselves. The rapidity with which in the
late summer and early autumn fresh credit was demanded and
absorbed by the feverish industrial and speculative activity already
described made it clear that natural forces in credit must also reassert themselves if the credit situation were to be protected and if
credit were to exert any restraint upon further price expansion.
The low discount rates which had been safely maintained by the
Federal Reserve Banks under the Government control of industry
during the war, proved, in the absence of such control, to be an
invitation to further credit expansion. They provided the banks
with cheap credit which could be re-loaned at a profit.
The Increase of Discount Rates
During September the debt of the Government decreased about
$400,000,000. By the end of the year the reduction had grown to
$759,000,000. This turn in the tide of Government financing provided the basis for an increase in the rates of the Federal Reserve
Bank of New York. These rates were accordingly increased,
gradually and progressively, on November 3, December 11 and 31,
1919, and January 22, 1920, from a scale of from 4 to 4% per cent,
to a scale of from 4 ^ to 6 per cent. Thus the rates which during
the war were necessarily related to the rates on Government securities rather than to the rates paid by industry and commerce, began
gradually to approach their normal relation to the latter class of
borrowing. If credit elasticity were abandoned and fixed limits of
credit established a large measure of credit and price deflation might
be accomplished promptly, but only at the expense of industrial
demoralization such as we have seldom, if ever, experienced.
Credit should do its part in bringing about the readjustment, and
should be made sufficiently expensive to exert pressure and discourage unproductive and unnecessary uses. But the movement should
be gradual and orderly; sudden credit or price deflation might lead
to disaster.
8
FIFTH ANNUAL REPORT
Price and Credit Contraction
While the present price expansion could not have occurred without accompanying credit expansion, we should not expect to rely
confidently or solely on credit contraction to bring about price
contraction. In any necessary industry in which the production
is unequal to the demands of consumption, the pressure of higher
credit costs is readily absorbed in the higher prices which absence
of competition permits; while refusal to extend credit merely tends
to widen the gap between supply and demand and leads consumers
to pay even higher prices for the decreased supply. Sugar, for
example, is a commodity of which, for various reasons, the world
is short. Sugar prices would permit producers to pay any cost
for credit; failure to secure credit would reduce production and lead
to still higher prices. Copper, on the other hand, was produced
in great volume for war requirements, but after the armistice the
production was in excess of peace needs, and the price to the public
promptly fell from 26 cents to 15 cents per pound without any
credit pressure to bring it down. Analyses of the prices prevailing
in many other specific industries could be made which would show
greater or lesser divergences from the general rise in the price level
and indicate that the prices under analysis were due not alone to
the larger volume of credit in use but in part also to the particular
conditions prevailing in such industries.
If anyone doubts the necessity for credit pressure as a sine qua
non of effecting a reduction of present price and credit expansion,
he has only to observe conditions before the pressure began to be
exerted in order to be convinced. Nevertheless, we should not
forget the desirability which the war so clearly taught us, of viewing our financial problems both from the standpoint of the supply
of goods and services as well as from that of credit which provides
the means of commanding and transferring them. In the absence
of industrial competition, so general at present, too much must
not be expected from credit pressure alone on either the volume
of credit or the price of goods. A decline in the price of goods
through the reestablishment of competition, however, will surely
bring about a decline in the volume of the credit required to produce and distribute them. The reestablishment of competition
seems most likely to be effected through increased production
rather than decreased consumption, for, under present conditions,
to effect any substantial reduction of consumption otherwise than
by taxation would be extremely difficult. Domestic consumption
is proceeding at a high rate, undeterred by either high prices or
urgent appeals for restraint and economy and supported by an immense group of wage-earners and agriculturists who have never
FEDERAL RESERVE BANK OF NEW YORK
9
before had such buying power and who mean to exercise and enjoy
it. They are creating a consumptive demand not to be measured
by pre-war standards. The declining exchange rates, however,
are tending to check the demands of foreign consumers for many
of our goods not essential to their health arid industries.
Prospects of Larger Production
The prospect of a gradual falling off of this foreign consumption
and of larger importations from foreign countries, encouraged by
the falling exchanges, indicates one possible element of relief to
the present lack of equilibrium between supply and demand at
home. Again, immigration, which ceased almost completely during the war, has recently been resumed in substantial volume,
though as yet it does not appear to have offset the steady return
of laborers to their European homes since the armistice. Perhaps the most encouraging prospect of the larger production so
necessary to reestablish competition is found in the tendency
of labor to work more steadily and efficiently, not only here but
in other belligerent countries, and in the activity of manufacturers
of labor-saving machinery. Managers of producing and distributing plants are apparently awakening to the desirability of effecting economies in the volume of labor they employ. Expressing
it in another way, they are seeking to provide labor with tools
and methods which will make it worth more nearly its present
wages as compared with those of five years ago. Wherever this
policy of readjusting the high cost of labor is practicable, instead
of readjusting by reducing wages, not only will the necessary transition to lower labor costs be facilitated but a great benefit will be
conferred both on those directly affected and on business generally.
For one of the most important economic changes brought about
by higher wages and the larger margins which they often represent
has been the broadening of our buying power and the stimulation
which it has given to industry. In our price readjustment whatever
can be done to conserve or even increase to the wage earner this
margin over bare living costs, will make the readjustment easier for
both labor and industry.
The Responsibility of the Member Banks
Except in the case of open market transactions, whatever
pressure Federal Reserve Bank rates may put upon the volume of
credit is exerted not directly but through the member banks. It is
important, therefore, that as the first steps are being undertaken to
reduce the great credit expansion which war financing necessitated
the member banks should realize that the existence of their new
credit organization does not lessen the responsibility for credit condi
10
FIFTH ANNUAL REPORT
tions which they formerly recognized and assumed. On the contrary
it rather increases their responsibility because of the immensely
increased credit power which the new organization creates and
which they take the initiative in using. The duty of the organization is to establish such rates as will suffice to keep the volume of
credit within control. But it is the credit policies and requirements of the member banks, reflected in the amount of their reserve
credit they call into use, which will usually determine the volume.
And as the banks are gradually relieved of Government securities
it seems desirable that the policy of steady borrowing which the
absorption of these Government securities has necessitated, should
gradually revert to the policy of seasonal or occasional borrowing by banks, which prevailed prior to America's entry into the
war. When the member banks have thus once more reached a
position in which they usually transact only such business as their
own resources permit the Federal Reserve System will have been
restored to its normal role of an agency for emergency or seasonal
expansion.
II
BANK OPERATIONS
Earnings, Investments and Banking Relations
The statement of condition of the Federal Reserve Bank of New
York as of December 31, 1919, compared with that for December 31,
1918, is as follows:
RESOURCES
RESERVES:
Dec. 31, 1919
Gold with Federal Reserve Agent
Gold redemption fund for Federal Reserve
Notes
Gold Settlement Fund
Gold bullion
Gold coin and certificates
Gold with foreign agencies
Legal tender notes
Silver certificates and coin
Total Reserves
Dec. 31,
1918
$306,756,215.00
$274,392,165.00
25,000,000.00
14,976,859.68
91,597,931.24
62,635,827.49
48,194,795.30
43,770,842.00
2,422,808.50
25,000,000.00
66,790,455.76
79,101,340.83
179,674,646.70
$595,355,279.21
$672,528,785.14
$790,803,288.24
202,902,609.54
1,306,800.00
8,445,500.00
$697,311,455.69
77,576,632.94
1,447,700.00
521,000.00
93,374,500.00
59,276,000.00
34,955,000.00
$1,062,734,] 97.78
$905,216,288.63
$132,138,895.83
3,527,000.00
2,900,000.00
194,382,544.39
$97,048,219.95
751,000.00
1,689,250.00
145,736,177.53
54,532,017.18
1,141,326.31
543,500.33
164,525.49
36,401,491.78
6,770,374.11
172,878.27
150,194.29
977,835.29
3,094,050.00
3,023,724.56
2,317,692.39
$393,401,694.82
$294,061,002.88
$2,051,491,171.81
$1,871,806,076.65
43,038,200.00
4,531,976.85
LOANS AND DISCOUNTS:
Bills discounted for memb r banks
Acceptances purchased
United States bonds
United States one year Treasury notes
United States certificates of indebtedness
United States Securities held to secure F. R.
Rank Notes
Total Investments
OTHER RESOURCES:
Federal Reserve Notes and other cash
Federal Reserve Rank notes
Redemption fund Federal Reserve Bank notes
Items in process of collection
Exchanges for Clearing House and sundry
cash items
Due from foreign banks
Interest accrued on United States bonds
Deferred charges and prepaid expenses
Advances made for Treasury U. S. account
expenses Government Loan Organization.
Real Estate
Total Other Resources
Total Resources.
11
FIFTH ANNUAL REPORT
12
LIABILITIES
CAPITAL:
Capital paid in
Surplus
Total Capital Fund
Dec. 31, 1919
Dec. 31,
$22,390,750.00
45,081,932.63
$20,820,100.00
8,322,040.00
1918
$67,472,682.63
$29,142,140.00
$5,849,025.28
27,569,776.45
755,951,452.59
88,568,032.65
11,655,844.36
$5,705,629.16
95,976,172.85
705,062,061.27
72,173,899.90
5,382,207.29
72,964,615.44
78,986,137.26
7,337,079.52
6,170,350.28
6,934,425.41
4,998,919.04
$976,066,176.57
$975,219,452.18
$939,715,955.00
58,200,000.00
$819,015,835.00
33,785,000.00
$997,915,955.00
$852,800,835.00
$526,621.35
822,682.42
2,737,510.26
20,130.00
$205,880.00
299,375.00
1,308,769.90
34,410.00
12,795,214.57
DEPOSITS:
Due to United States Government
Due to Foreign Governments and banks
Due to member banks—reserve balances
• "
"
" —uncollected funds.. . .
Due to non-member banks, deposit account..
Due to other Federal Reserve Banks—collected funds
Due to other Federal Reserve Banks—uncollected funds
Officers' checks outstanding
Gross Deposits
NOTES:
Federal Reserve notes outstanding
Federal Reserve Bank notes outstanding
Total
OTHER LIABILITIES:
Depreciation reserve account
General reserve account
Unearned discount and interest
Participation certificates Liberty Loan bonds
Reserve for franchise tax
Due to United States Government as franchise
tax
All other liabilities
Total Other Liabilities
Total Liabilities
2,703,893.63
3,225,519.95
$10,036,357.61
$14,643,649.47
$2,051,491,171.81
$1,871,806,076.65
The increase in the capital stock of the bank is analysed in
Exhibit B in the appendix.
FEDERAL RESERVE BANK OF NEW YORK
13
EARNINGS AND EXPENSES
Following is a comparative statement of the earnings and expenses
of the Federal Reserve Bank of New York for the years 1918 and
1919:
1919
$29,935,910.97
3,334,329.74
1,888,497.28
INCOME:
Bills discounted—members
Acceptances bought
United States securities
Municipal warrants
Commissions received
Profit on bills sold
Penalties for deficient reserves
Service charges
Interest on noncurrent funds ...
Sundry profits
275.08
36,405.58
3,746.51
78,840.88
Total.
1918
$17,736,260.94
5,411,820.70
1,561,839.17
2,621.23
22,645.93
10,393.07
27,191.89
50,167.06
491,795.99
$35,278,006.04
$25,314,735.98
$29,335.22
2,959,165.15
290,243.41
204,013.60
130,718.37
236,653.61
65,725.15
116.071.54
54,395.47
98,816.68
160,941.30
$22, 618.96
1,298 474.26
139. 007.62
170. 933.02
42, 145.52
137, 960.30
33, 053.49
99. 439.80
47. 204.28
35. 294.48
48. 459.52
43,735.90
351,541.63
610,538.86
31,060.00
181,874.61
20,491.24
121,779.43
335,043.65
27,920.93
100,876.18
$5,564,830.50
$2,680,702.68
$29,713,175.54
10,413.16
$22,634,033.30
132,058.91
$29,723,588.70
$22,766,092.21
EXPENSE :
Directors' fees, outside conferences, and Federal
Advisory Council
Salaries
Rent
Cost of furniture and equipment
Repairs and alterations
Stationery and printing
Telephone and telegraph
Postage
Expressage
Insurance
Extra help, and supper allowance due to late work
Postage and insurance on our Federal Reserve
notes returned
General expense
Cost of Federal Reserve notes
Cost of Federal Reserve Bank note plates
Assessment for expenses of Federal Reserve Board
Total
Net earnings
Net credits to Profit and Loss during year.
Total
DEDUCTIONS DECEMBER 31,
1919:
Reserve for tax on Federal Reserve
Bank note circulation
$169,514.40
Additional transfer to depreciation
reserve account
325,741.35
Transfer to general reserve account . . . 368,681.70
Estimated value of buildings now
standing on site, charged off
900,031.72
DIVIDENDS PAID DURING
January 1 to June 30
July 1 to December 31
1919:
$630,578.84
660,469.00
Carried to surplus
Paid franchise tax United States Government.. .
Total
$1,763,969.17
1,291,047.84
23,964,678.06
2,703,893.63
$29,723,588.70
14
FIFTH ANNUAL REPORT
The increased earnings for 1919 were due, of course, to the larger
volume of discounts and advances which war and business financing necessitated during the year. The total of expenses does not
comprise disbursements made for the account of the Government
amounting to $4,963,642.44, which include the cost of carrying
on the departments of the bank performing fiscal agency functions
for the United States, and the Government Loan and War Savings
Organizations. These payments have been reimbursed or are now
in process of reimbursement by the Treasury Department.
The amendment to the Federal Reserve Act, approved March 3,
1919, directed that each Federal Reserve Bank should pay its net
earnings into a surplus fund until it amounted to 100 per cent,
of its subscribed capital and that thereafter it should pay into surplus each year a further 10 per cent, of its net earnings, before
transferring to the Treasury of the United States any of its surplus
earnings as a franchise tax. This was made retroactive so as to
cover the surplus earnings of the year 1918, which had not been
called for by the Treasury Department pending the consideration
of this legislation by Congress. Accordingly, at the close of the
year the surplus of the Federal Reserve Bank of New York is
$44,781,500, or 100 per cent, of its subscribed capital, to which is
added 10 per cent, of the remaining net earnings of the present
year, or $300,432.63, making in the aggregate a surplus of $45,081,932.63 to which the United States has reversionary ownership.
The amount transferred to the Treasury of the United States as a
franchise tax was $2,703,893.63.
Deductions have been made from the total net earnings of the
bank to cover certain known items of depreciation and to provide
reserves for special purposes. Thus, the appraised valuation of the
old buildings and foundations on the property acquired during the
year as a part of the site for the new bank building, has been charged
off in the amount of $900,031.72. The loss in value of the foreign
exchange held by the bank as based on market rates at the close
of the year, amounting to $325,741.35, has also been provided for,
and an additional sum of $200,000 has been set aside for the establishment of a self-insurance fund. Other charges are $169,514.40, to
cover the tax on Federal Reserve Bank note circulation for 1919,
and $168,681.70 to cover the assessment to be made by the Federal
Reserve Board for its expenses.
Semi-annual dividends of 3 per cent, were paid to stockholders
on June 30th and December 31st.
FIFTH ANNUAL REPORT
15
INVESTMENTS DURING 1919
EARNING ASSETS AND GOLD RESERVES, FEDERAL RESERVE BANK OF |HW YORK
mi
wiuun
lilt
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(In millions of dollars)
Recourse to the credit facilities of the Federal Reserve Bank of
New York was more constant and general, and in larger volume than
during 1918. The maximum of its earning assets during 1918 was
$968,000,000. In 1919 it was $1,079,000,000. The chart given
above shows the course of the earning assets and gold reserves of
the bank for the years 1918 and 1919. Chart No. 4 in the appendix shows the classification of the earning assets, and Exhibit
C gives the figures illustrated in the chart.
Discounts and Advances
As the necessity for the banks to borrow from the Federal Reserve
Bank arose primarily from their absorption of one form or another
of Government obligations, it was natural that these obligations
should have continued to be used during the year as the chief basis
for accommodation at the Federal Reserve Bank, though loans
based on commercial paper showed a marked increase from 1918.
But the impelling reason why loans continued to be based mainly
16
FIFTH ANNUAL REPORT
on Government obligations was the preferential rate established
for such transactions, and the greater ease and simplicity of borrowing with such security. In both 1918 and 1919, although it was
the volume of Government obligations outstanding which created the necessity for borrowing at the Federal Reserve Bank, the
fluctuations in the amount of this borrowing arose directly from the
movement of Government funds into or out of the district, as was
noted in the last annual report.
Below is a comparative summary of the discounts and advances
made in 1919, 1918 and 1917:
1919
Number of applications
23,237
received
Amount of applications
accepted and discounted or advanced upon.. $42,449,491,133.87
Number of pieces of
paper discounted or
advanced upon
127,721
Largest piece of paper
discounted or advanced upon
$120,000,000.00
Smallest piece of paper
discounted or advanced upon
2.81
Average size of notes discounted or advanced
upon
$332,361.09
Number of banks redis546
counting..,
1918
14,831
$24,535,538,457.77
129,038
$135,000,000.00
5.02
$190,141.96
522
1917
2,513
$6,513,225,285.60
22,484
$147,000,000.00
25.00
$289,682.67
322
The distribution by months of discounts and advances made in
1919 is given in the appendix (Exhibit D).
During the year the purchase from the Treasury of special certificates of indebtedness for short periods in order to supply the Treasury with funds to meet maturing obligations pending the transfer
of funds from other districts, or their withdrawal from depository
banks, aggregated $2,605,500,000; the largest amount of such certificates held at any one time was $260,000,000. Exhibit E in the
appendix gives the amounts of such certificates taken at various
times in 1919. The bank purchased during the year $24,321,000
United States 2 per cent, certificates of indebtedness, which it
hypothecated under the authority of the Pittman Act as security
for Federal Reserve Bank notes.
The custom of purchasing certificates of indebtedness from nonmember banks with an agreement on their part to repurchase within
fifteen days, was continued in 1919 as a means of encouraging their
subscriptions to the issues. The largest amount of certificates held
FEDERAL RESERVE BANK OF NEW YORK
17
under repurchase agreements at any one time was $35,876,500 on
May 6.
This bank has continued during the year its policy covering the
temporary purchase of bills, thereby assisting houses that deal in
such paper from time to time in carrying their portfolios. The
largest amount of bills so held at any one time was $14,288,851.73
on November 17.
Reserve Percentage
ac MIFEBM/jH
IANIFEB M£M APR MAY ISMIilL AUlk
Movement of Reserve Percentage 1918-1919
During the year the fluctuations in earning assets and the movements of Government funds effected considerable variations in the
reserve percentage of the Federal Reserve Bank of New York, as
appears in the chart given above, which shows also for purposes of
comparison the course of the reserve percentage in 1918. In its
weekly published statements the highest per cent, of reserves against
deposit and note liabilities was 54.5 on June 20, and the lowest per
cent., 40 on December 26. Detailed figures showing the changes
from week to week appear in Exhibit F in the appendix, and are
illustrated in Chart No. 5. Frequently during the year in order to
equalize reserve percentages, this bank sold bills from its portfolio
to other Federal Reserve Banks. The volume of these sales aggregated
$312,739,000. On the other hand, as a partial offset to this larger
aggregate transfer of investments, the Federal Reserve Bank of
New York rediscounted for or purchased bills from other Federal
Reserve Banks to the aggregate amount of $55,826,561.89.
The following table shows the reserve figures of this bank and of
the Federal Reserve System, when the United States entered the
war and at the close of 1918 and 1919:
Federal Reserve
Bank of New York
Date
April 6, 1917
December 27, 1918
December 26, 1919
All Federal
Reserve Banks
Per Cent.
Amount
Per Cent.
92.0
42.5
40.0
$426,714,000
637,295,000
616,040,000
84.7
50.6
44.8
Amount
$962,662,000
2,146,219,000
2,135,536,000
18
FIFTH ANNUAL REPORT
ACCEPTANCES AND THE DISCOUNT MARKET
Purchases by months of bankers acceptances and indorsed trade
bills by this bank for its own account and for the account of other
Federal Reserve Banks have been as follows:
For the Account of
Other Federal Reserve
Banks
For Our Own Account
No. of
Items
January...
February. .
March
April
May
June
July
August.. . .
September.
October...
November.
December.
Total
Amount
No. of
Items
Amount
2,850
2,115
2,013
2,645
2,300
4,768
4,832
2,301
2,332
5,448
5,145
6,823
$75,628 789.75
56,351 763.56
53,350 194.52
71,653. 945.23
60,721. 633.14
142,516. 454.53
129,118. 992.41
64,910. 475.76
64,481 753.02
145,060. 465.83
152,642. 970.06
210,788. 099.84
1,789
1,209
1,329
1,217
1,252
2,875
2,749
1,903
2,931
3,838
3,109
4,383
$46,516,341.45
31,772,303.09
34,959,972.36
33,966,815.31
34,190,164,37
81,900,544.26
73,976,160.83
16,094,342.25
76,141,468.06
98,869,452.20
79,417,015.05
101,694,398.60
43,572
1,227,225,537.65*
28,584
$739,499,007.83
*Includes $15,826,561.89 of bills bought from other Federal Reserve Banks.
The classification of bills bought in the open market for the
account of this bank and for other Federal Reserve Banks, the
volume of acceptances discounted in 1919, and the amounts sold
by this bank to other Federal Reserve Banks, appear in the appendix (Exhibits H and I).
Purchases for Member Banks
During the year 1919 this bank, as a service to member banks,
has also bought bills in the open market for their account. This
new service has been availed of by 38 member banks up to the
end of December 31, 1919. Bills bought for their account aggregated $8,199,947 and comprised 873 pieces. Such purchases are
made for member banks on their order, and if desired, this bank
retains custody of the paper bought, and either collects it for the
member bank's credit at maturity or makes such other disposition
of it before maturity as may be desired. This service is without
charge to members and through it several of them have become
experienced buyers of bills on their own account, and find it no
longer necessary regularly to avail themselves of the service.
Others, having surplus funds for investment only occasionally,
have not yet developed as individual buyers. From the very general
interest manifested in this new service, the outlook for increasing
activity in it is promising.
FEDERAL RESERVE BANK OF NEW YORK
19
Bankers Acceptances
The demand for bankers acceptance credit continues to increase
substantially and more bills are being created than ever before.
Freer shipping facilities have promoted larger import movements,
particularly from South America and the Orient, and increased commodity prices have resulted in very large dollar drawings from those
markets. The increased price of cotton this year also has required
much greater banking accommodation, which has largely taken
bankers acceptance form, with the result that many new names have
appeared in the New York market as acceptors, principally of
banks located in the South and Southwest.
Careful estimates of the volume of bankers acceptances and
foreign trade dollar bills drawn on American merchants at the close
of the year 1919 indicate a total well in excess of $1,000,000,000,
of which it is estimated that about $950,000,000 are bankers acceptances. A table of estimates of the amount of eligible bankers
acceptances at the end of the year, arranged by Federal Reserve
Districts, follows:
Boston
$110,000,000 Chicago
$65,000,000
New York
643,000,000 St. Louis
20,000,000
Philadelphia
25,000,000 Minneapolis
7,000,000
Richmond
19,000,000 Kansas City
1,000,000
Cleveland
26,000,000 Dallas
*
11,000,000
Atlanta
5,000,000 San Francisco
26,000,000
The further development during the year of the business of
accepting corporations and foreign trade banks has been rapid.
At the end of the year such institutions located in New York had
aggregate capital and surplus in excess of $38,802,000, and their
liability for acceptances outstanding was approximately $90,000,000.
The acceptance liabilities of national banks, trust companies
and state banks of this district, as of recent date, are compared
with former years in the following table:
Nov. 12
Dec. 31, 1919
National Banks... $184,022,912.00
Trust Companies.. 134,653,153.63
State Banks
16,978,158.47
Total
$335,654,224.10
Sept., 1918
$141,931,391.42
124,038,547.88
9,841,533.62
Sept., 1917
$73,717,000
91,424,509
7,355,910
Sept., 1916
$44,300,877
68,588,558
2,787,995
$275,814,472.92
$172,497,419
$115,677,430
The figures above stated for 1919 were taken from published
statements as of December 31, 1919, where statements of that date
wTere available, and otherwise from the last available published
statements, which were of the date as of November 12, 1919.
These figures, however, do not represent the entire amount of bills
20
FIFTH ANNUAL REPORT
accepted by the banks in this district as of those dates, but only
the amount of their acceptances outstanding and in the hands of
holders other than the accepting banks. I t appears from the
reports that on the same dates additional amounts of acceptances
of these institutions were held in their own portfolios as follows:
National Banks
Trust Companies
State Banks
$16,028,745.00
26,090,337.61
6,783,848.62
Total
$48,902,931.23
While discount houses and dealers in bills have endeavored
strenuously to accomplish distribution of this increased volume of
bills and in the main have been fairly successful, the almost constant advance in money rates made their task increasingly difficult.
Not only have they had to carry larger portfolios, often requiring
for that purpose funds obtainable only at rates equal to or higher
than those earned by their portfolios, but the higher rates for call
money on investment securities attracted to that market out-oftown funds that might otherwise have been at the service of the open
discount market; and during the latter months of the year, as
the market rates for bills yielded along with other rates to higher
levels, there developed an instability that prevented satisfactory
distribution. Under these circumstances the Federal Reserve
Banks absorbed an increasing amount of bills in the open market,
buying from member banks and dealers alike at uniform rates for
prime indorsed paper.
The minimum rates at which paper wras purchased during the
year by this bank were by periods as follows:
Jan. 2 to Nov.
Nov. 5 to Nov.
Nov. 26 to Dec.
Dec. 4 to Dec.
Dec. 23 to Dec.
Dec. 29 to Dec.
3
25
3
22
29
31
Short 90-Day
Bills
Bills
4%
4^%
4^%
4^%
4%%
4%% 5%
These rates reflected the changed conditions in the primary
market and were in every instance for three-name paper as compared with unindorsed bills on which the market quotations were
generally based. The primary market rates for 90-day bankers
bills advanced during the year from about 4 5-16-4 3-8% to 5 3-85/^%- The experience of the discount market for the last three
months of the year emphasizes the need referred to last year of a
call money market related to commercial discount rates rather
FEDERAL RESERVE BANK OF NEW YORK
21
than to the requirements of the securities market. A committee
of prominent bankers and stock exchange members, under the
chairmanship of Hon. Paul M. Warburg is giving this matter serious
consideration.
During the first ten months of the year, Treasury certificates
of indebtedness were available to investors at rates slightly above
the discount rates on prime bankers acceptances and this fact continued to operate as it did last year against general buying of bills
by savings banks and corporations, but now conditions are reversed
and the discount market expects a better demand to develop from
these quarters for the 90-day and four-months' bankers acceptances.
Trade Acceptances
The former activities of the American Trade Acceptance Council
in promoting a more general use of trade acceptances have, during
the year, been carried on by the American Acceptance Council,
which succeeded the American Trade Acceptance Council, including
its functions within its broader purposes and sphere of influence.
The increased volume of this class of paper appearing in the market
and offered for discount, as well as the greater and more intelligent
interest shown in many quarters, indicates the continued success of
the movement during the year and it may be said that the practice
of closing commercial accounts with the trade acceptance has
become well fixed in many lines of trade.
Inquiries recently conducted indicate a substantial increase in
the number of representative concerns using the system. The
position in the discount market of the bills of well-known houses is
well established, and the distribution through this channel is reported to be satisfactory. The amount of domestic trade bills
discounted and purchased by the Federal Reserve Bank of New
York during 1919 was $45,724,760.52, as compared with $31,903,092.74 during 1918.
22
FIFTH ANNUAL REPORT
NOTE ISSUES
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Federal Reserve Notes in Actual Circulation 1918-1919
Federal Reserve Bank of New York
(In millions of dollars)
Federal Reserve Notes
The foregoing chart shows the movement of the Federal Reserve
notes of this bank in actual circulation during the year. The decrease during the first month of the year reflects the normal release
of currency following the crop moving and holiday periods. The
maintenance of the circulation at a high point throughout the balance of the year, which reached $827,679,000 on December 24, is
merely indicative of great trade activity at steadily increasing prices.
The amount of Federal Reserve notes in actual circulation at the
end of each week throughout the year appears in Exhibit F and the
movement of Federal Reserve notes between this bank and other
Federal Reserve Banks is given in Exhibit J, both in the appendix.
The substitution of Federal Reserve notes for gold certificates
seems to have proceeded as far as practicable. The banks of the
district are carrying very small stocks of gold certificates, and though
they continue to retire from general circulation those which are
presented over their counters, the volume of gold certificates in
general circulation in the district is now very small indeed.
Federal Reserve Bank Notes
With the continuance during the early part of the year of the
export of silver to oriental countries, Federal Reserve Bank notes
have been issued in increasing volume to replace silver certificates
retired from circulation. The amount of Federal Reserve Bank
notes of this bank outstanding on December 31, was $58,000,000,
which compares with $33,000,000 a year ago.
FEDERAL RESERVE BANK OF NEW YORK
23
During this year for the first time a supply of the larger denominations of Federal Reserve notes, permitted by the amendment of
September 26, 1918, have been available and on December 31, the
following amounts were outstanding:
Denominations
500
1,000
5,000
10,000
Amount Outstanding
$12,816,000
35,681,000
2,000,000
5,950,000
Handling the Larger Circulation
The increased outstanding circulation of this bank has necessitated a corresponding growth in the division which handles the
bulk of the currencjr received on deposit from the banks of this
district. At the close of 1918 the staff of this division was composed of 74 employees—35 men and 39 women—who sorted,
counted, and put notes up in packages or prepared them for redemption, performing an approximate average of 683,000 separate counts
every day, or a total of about 206,903,000 for the year. At the close
of 1919 the staff of this division comprised 216 employees—123 men
and 93 women—as compared with 74 a year ago, and the approximate daily average was 1,575,000 counts or a total of about 477,476,000 for the year. Expressed in values, such receipts for 1919
totalled $1,702,229,104, compared with $922,674,615 in 1918.
A summary of the total issues of Federal Reserve notes, the redemptions, the amount outstanding and the collateral and gold held
against them appears in Exhibit K in the appendix.
The notes of the bank have been at all times during the year
redeemable in gold, although the amount so presented for redemption has been extremely small.
The money shipping division, which has charge of the despatch
not only of currency and securities to the banks, but of notes to
Washington for cancellation, made 63,194 shipments in the year as
against 34,934 in 1918. Currency shipments amounted to $480,771,000 in addition to $602,538,000 of notes sent to Washington for
cancellation, and securities shipped totalled $470,000,000. The
shipments of notes to be cancelled and shipments of currency were
more than double the corresponding figures for 1918, but the securities shipped were materially less than in that year because there
was but one Government loan.
FIFTH ANNUAL REPORT
24
COLLECTIONS AND CLEARINGS
The increasing use which is being made of the check collection
facilities of the bank is indicated in the following figures, showing
the number of items handled year by year, and the amount in
dollars:
Number
of Items
Period
1915 (June 1—December 31)
1916
1917
1918
1919
Amount
1,262,211 $1,334,015,772
6,841,364
5,160,192,000
19,408,179 20,104,527,000
35,349,601 42,581,833,000
*74,466,774 *56,557,8S4,478
Additions to Par List
During 1919, in addition to handling an increased number of
items progress was made in many directions. Chief among these
was the notable increase of 6,581 banks in other Federal Reserve
districts added to the par list, making the total number of such
points 25,571, out of a total estimated number of banks and bankers
29,586. On December 31, 1919, checks were being handled at par
on every bank and banker in the following states:
California
Kansas
Nevada
Pennsylvania
Colorado
Maine
New Hampshire Rhode Island
Connecticut
Maryland
New Jersey
Texas
Delaware
Massachusetts
New Mexico
Utah
Idaho
Michigan
New York
Vermont
Illinois
Missouri
North Dakota
Wyoming
Indiana
Montana
Ohio
District of
Iowa
Nebraska
Oklahoma
Columbia
In this Federal Reserve district arrangements were made on
November first to collect checks at par on all private bankers in the
district—in nearly all cases with the consent of such bankers. At
the beginning of the year there were forty-two banks in New York
State on which checks were being collected through express companies or special agents, owing to their unwillingness at that time
to remit at par. At the end of the year all but four of these banks
had agreed to remit.
The number of our own member banks which regularly send us
checks for collection has increased materially with the extension
of the par list, but for the country banks the collection of checks
through Federal Reserve Banks will not become general until the
entire country can be handled.
Owing to the new organization of the Transit Department,
effected at the end of 1918, this department has functioned with
•Including checks handled by Buffalo Branch
FEDERAL RESERVE BANK OF NEW YORK
25
increasing smoothness throughout the current year. The number
of items handled fluctuates considerably, the lowest number of
items handled in one day during the year being 150,000, while the
highest was 274,000.
There has been a steady increase in the number of items received
by the Transit Department direct from member banks in other districts. Similarly more of our own member banks are sending their
items direct to other Federal Reserve Banks when time of transit
can be reduced by so doing. It is estimated that over 100,000
items are now being sent direct.
During the year by an arrangement with the banks and bankers
in the Borough of The Bronx and in the Borough of Manhattan north
of 59th Street, and, later by a similar arrangement with those in
Brooklyn, a plan was developed of clearing checks drawn upon these
banks and bankers which enabled such checks to be received for
immediate credit instead of upon the basis of two days deferred
credit as heretofore. It is hoped that during the ensuing year
further services of this kind may be developed, where the volume
warrants, looking to the reduction of the transit and collection time.
Exhibit L in the appendix shows the various classes and amounts
of checks handled during 1919 by the check collection department
of the bank.
N o t e Collection
The facilities of the Bank in the collection of notes, drafts and
coupons were further developed and increasingly used. During 1919
the bank collected 83,534 notes and drafts payable in New York
City, as compared with 39,302 the year before, and about 8,000 in
1917. The collection of such items payable elsewhere than in New
York increased nearly 200 per cent, during the year, aggregating
147,742 in number and $234,834,000 in amount. Through the
Buffalo branch collections of a similar nature were made for the
Buffalo territory. No charge is made by the Federal Reserve Bank
for this service, but where a charge is made by the collecting bank,
it is passed back to the depositing bank.
The bulk of these non-cash items, however, is collected at par.
During the year, of those payable within this district, about 973^
per cent, were collected at par, and where charges were made the
average rate was 1-12 of 1 per cent. Of the items payable outside of
this district, about 77 per cent, were collected at par, and charges,
when made, averaged about 1-10 of 1 per cent.
Coupon Collections
The collection of matured bonds and coupons by this bank during
1919 was $39,748,000 as compared with $17,945,000 during 1918.
FIFTH ANNUAL REPORT
26
The extent to which the member banks are availing themselves of
this service is seen in the increase in the number for whom collections were made from 258 during 1918 to 587 during 1919.
Gold Settlement Fund
The settlements made through this fund during 1919, as compared
with those of previous years, were as follows:
1919
"
$41,932,723,000
1918
32,935,576,000
1917
17,118,917,000
1916
2,335,225,000
1915
556,432,000
A more detailed statement of the transactions for the year is
given in Exhibit M in the appendix.
Telegraphic Transfer System
This system has been used increasingly throughout the year by
the Treasury Department and by the member banks, to make transfers of funds from one part of the country to another, immediately,
at par and without cost. The growth of the use of the system may
best be understood from the following daily average figures:
Number of
Transfers
Month
1917 1918 1919
January
February
March
April
May
June
July
August
September
October
November
December
31
35
38
48
73
70
65
80
88
101
112
110
135
142
168
188
187
209
211
213
213
221
235
262
272
273
306
330
357
359
Amount Transferred
1917
1918
$31,801,000.00
28,536,000.00
30,893,000.00
37,301,000.00
47,191,000.00
50,308,000.00
$49,137,729.59
50,063,542.32
42,693,293.87
54,739,515.64
55,045,758.84
70,647,040.30
67,710,105.00
54,046,227.58
55,639,814,09
98,785,077.26
68,017,973.77
86,148,696.73
1919
$61,452,380.36
54,293,219.90
60,427,470.97
49,145,844.50
47,515,234.73
56,751,256.15
69,269,382.04
60,844,434.71
69,264,574.21
59,560,197.96
61,805,748.66
69,557,755.09
FEDERAL RESERVE BANK OF NEW YORK
27
RELATIONS WITH BANKS
The banks of the Second Federal Reserve District as they were
on December 31, 1919, classified according to their charters, whether
National or State, and also according to membership in the Federal
Reserve System, are as follows:
NATIONAL
STATE BANKS
BANKS
LOCATION
TRUST
COMPANIES
TOTAL
Members
NonMembers
Members
NonMembers
Members
NonMembers
Manhattan
Rest of New York State...
31
457
15
24
19
166
15
35
8
41
61
516
27
207
Total New York State..
New Jersey
Connecticut..,
488
135
13
39
5
0
185
11
1
50
26
2
49
61
15
577
166
15
234
72
16
636
44
197
78
125
758
322
Total for District
Bank Changes in 1919
Important changes that transpired during the year, including the
establishment of new banks, both National and State, are summarized as follows:
Total number of banks in the district, January 1,
1919
1,045
New National banks established
24
New State institutions established
25
1,094
National banks absorbed by State institutions. .
State institution absorbed by National bank...
State institutions absorbed by other such
institutions
National bank consolidated with another National bank
State bank went out of business
3
1
8
1
1
—
National banks converted into State institutions 6
State institutions converted into another type
of State institution
5
Total number of banks at the end of the year
14
1,080
28
FIFTH ANNUAL REPORT
Conferences w i t h M e m b e r B a n k s
With the strain of the war lifted a continuous effort has been made
by the officers of the bank to establish personal relations with the
officers of member banks, especially of those situated outside of
New York City. While there has been general understanding of
the services performed by the Federal Reserve Bank in extending
credit, collecting checks and supplying currency, and in connection
with the sale and handling of Government bonds and certificates,
many bankers have been unfamiliar with the other operations and
services of the bank. The bankers outside of New York City have
therefore been invited in groups of about twenty-five, to spend a day
at the Federal Reserve Bank discussing its operations with its officers,
making suggestions for the improvement of its service, and visiting
its various departments. At the same time an opportunity was
presented for the officers of the bank to explain fully its policies,
which were frequently not understood by the member banks. In
all, officers of 481 member banks, out of a total of 758, attended
such conferences during the year. I t is hoped that in 1920 the
officers of many of the remaining 277 banks will be able to attend
similar meetings.
Member Banks Relations Department
In order further to carry out the purposes of these conferences a
special representative of the Federal Reserve Bank was assigned
early in the year to visit member banks and to discuss with their
officers current banking problems, and explain the services which
this bank stands ready to perform. The results proved to be beneficial, and it was decided to enlarge the staff of visitors. Accordingly when the new organization was effected in September it was
decided to establish a Member Bank Relations Department, with
additional traveling representatives, so that at least once each
year the Federal Reserve Bank, following the well-established
practice of large commercial banks, should have first-hand contact
with each of its customers. Altogether 487 banks were visited in
the year.
During the year the banks of this district, both member and nonmember, exhibited the same cordial support of the Government's
financial program as during the war. They oversubscribed their
quotas, when such were assigned, of certificates of indebtedness
offered, and in the Victory loan the Second Federal Reserve District led all others by subscribing for 130 per cent, of its quota.
New Members of the System
The number of State banks and trust companies, which are
members of the system, increased during the year from 101 to 122
FEDERAL RESERVE BANK OF NEW YORK
29
Twenty-two new State bank or trust company members were admitted, and one trust company formerly a member was merged
with a National bank. The 122 members represent 31 per cent,
in number, and about 79 per cent, in resources of the State banks
and trust companies in the district which have sufficient capital
to make them eligible for membership. In both of these respects
the New York Federal Reserve District continues to lead all the
other districts. The new members in 1919 were as follows:
BANK OR TRUST COMPANY
January
April
LOCATION
Northern Westchester Bank
Katonah, N. Y
Hamilton Trust Company
Paterson, N. J
Mechanics Bank
Brooklyn, N. Y
Ironbound Trust Company
Newark, N. J
May
Fidelity Trust Company of Buffalo. Buffalo, N. Y
Geneva Trust Company
Geneva, N. Y
June
Bank of East Aurora, The
East Aurora, N. Y
Peoples Bank of Buffalo
Buffalo, N. Y
Bank of Buffalo, The
Buffalo, N. Y
July
Kingston Trust Company
Kingston, N. Y
August
Sussex County Trust Company... .Franklin, N. J
Liberty Bank of Buffalo
Buffalo, N. Y
Bank of United States
New York, N. Y
September... Olean Trust Company
Olean, N. Y
Citizens Trust Company
Adams, N. Y
Elizabeth/port Banking Company. .Elizabeth, N. J
November... East Orange Bank
East Orange, N. J
Bank of Orchard Park
Orchard Park, N. Y....
December.. .Citizens Bank of Cape Vincent.. . .Cape Vincent, N. Y.. . .
Bank of Nutley
Nutley, N. J
State Bank of Endicott
Endicott, N. Y
Ridgefield Park Trust Company.... Ridgefield Park, N. J. ..
RESOURCES
$336,550.89
12,351,991.75
43,892,494.38
9,048,197.36
22,066,511.71
4,135,279.29
1,498,420.83
17,946,195.64
48,569,225.01
1,626,614.61
402,030.32
37,048,764.17
28,964,148.01
1,370,281.29
1,374,760.33
4,739,350.15
1,902,757.67
488,512.36
170,606.92
1,538,980.85
60,000.00
1,579,494.52
With the signing of the armistice and the removal of the war
incentive towards membership, the number of State institutions
applying for membership decreased considerably. But the development during the past year of services and facilities of the Federal
Reserve Bank, and the more general understanding and appreciation of them by the member banks, has not been without its influence among the State institutions, and there are indications that
during the ensuing year the number of applications is likely at least
to be maintained.
Fiduciary Powers for National Banks
During the year the number of national banks in the district
exercising fiduciary powers—authorized by the Federal Reserve
Board, under the amendment to the Federal Reserve Act approved
September 26, 1918—increased from 34 to 117. A number of these
banks, especially those in the larger cities, are actively developing
fiduciary business, but in the smaller places many of the banks
have gone no further than to obtain the Federal Reserve Board's
30
FIFTH ANNUAL REPORT
permission to transact it. A list of the banks thus far authorized
appears in the appendix, Exhibit N.
Banks which have received permission to accept drafts and bills
of exchange up to 100 per cent, of their capital and surplus are listed
in Exhibit O in the appendix.
The Reserves of Member Banks
From the inauguration of the Federal Reserve System the reserves
of member banks in this district were calculated by this bank on
the basis of averages for monthly periods; but in other districts a
number of other plans, some on a semi-monthly, some on a weekly
and some on a daily basis were in operation. In the early fall the
Federal Reserve Board thought it desirable to establish a uniform
practice, and in conformity with general instructions issued by the
Board, this bank instituted on October 1 the Board's uniform
method, superseding the monthly method of reporting in effect previously. Under the revised method weekly reports are received
from member banks in the central reserve cities and reserve cities
—that is, the Boroughs of Manhattan, Brooklyn and The Bronx,
and the cities of Albany and Buffalo—and semi-monthly reports
from members elsewhere. From these reports are computed each
bank's net demand and time deposits for the weekly or semimonthly period as the case may be, and the amount of reserve
which each bank is required to keep at the Federal Reserve Bank.
The penalty rate on deficient reserves has remained at 6% P e r cent,
throughout the year. Penalty payments amounting to $31,495.70
were slightly above those of last year, when the amount was $27,191.89.
Relations With State Banking Departments
The relations with the State Banking Departments of New York,
New Jersey and Connecticut have continued to be of the most
cordial nature during 1919. The chiefs of these departments and
their deputies and examiners have visited this bank, and our examiners accompanied their examiners in the examinations of over onequarter of the State institution members of this bank.
In New York State the Superintendent of Banks recommended
to the Legislature of 1919 bills which were enacted into law providing him with the necessary authority to receive securities on deposit from National banks granted fiduciary powers, and providing
that a State bank or trust company which became a member of the
Federal Reserve Bank of New York, should be considered as complying with the State reserve requirements if it maintained the reserves required by the Federal Reserve
FEDERAL RESERVE BANK OF NEW YORK
31
INTERNATIONAL FINANCIAL ARRANGEMENTS
Prior to January 1, 1919, this bank made certain financial
arrangements with foreign banks or governments which were by
way of preparation for a return to more nearly normal conditions
in international commerce than had existed during the war. These
arrangements were outlined in this report for 1918. The operations
carried on in accordance with them during the year are summarized
below:
BANK OF ENGLAND:—Transactions with the Bank of England
under the terms of our formal agreement have been very limited
during the past year. We have opened a current account with
them which has, however, remained inactive. The Bank of England is handling for our account the German gold purchased from
the United States Grain Corporation, described elsewhere in this
report, which involves a very considerable amount of work on their
part.
BANK OF FRANCE:—Operations between this bank and the Bank
of France have been very limited, being confined largely to our
opening a current account with them and the occasional receipt of
funds by us for their credit.
BANK OF JAPAN:—No active business has been transacted during the past year with the Bank of Japan although it is expected
that our relations may become more active in the near future.
PHILIPPINE NATIONAL BANK:—Our relationship with the Philippine National Bank has remained unchanged, there being no need
for active operations, as they have a branch in New York.
D E NEDERLANDSCHE BANK:—Our relations with this institution
during the past year have become more active and we now perform
for them many of the duties of a New York correspondent. They
have opened a current account with us and also invest in bills
in this market which are held by us in portfolio for them. The account which we opened with de Nederlandsche Bank for the purpose of receiving therein, for the use of the Treasury Department,
the proceeds in guilders of the sale of wheat and other commodities,
has been closed out during the past year.
NORGES BANK AND SVERIGES RIKSBANK:—Both of these accounts which were opened at the request of the Treasury Department to effect disbursements for the War Department have been
closed out, the former on September 24, 1919, the latter on April
10, 1919.
D E JAVASCHE BANK:—In April, 1919, a limited arrangement
32
FIFTH ANNUAL REPORT
was effected between ourselves and de Javasche Bank whereby we
agreed to hold United Spates gold coin in custody for them, and
open a current account in their favor. This arrangement is now in
actual operation.
BANK OF SPAIN:—This account was opened in August, 1919,
at the request of the Treasury, to receive therein the pesetas which
we purchased as fiscal agent of the United States to retire peseta
certificates of indebtedness issued by the Treasury in connection
with the 250,000,000 Spanish Peseta Credit. Operations through
this account have been confined to such transactions.
INDIA:—Operations under the arrangement between the United
States and the British Government by which American importers
obtained rupees through the Federal Reserve Bank of New York
to pay for imports from India were concluded on May 12, 1919,
when the last sale was made. The total credits received by this
bank under the arrangement from November 28, 1917, when it
went into operation, to May 12, 1919, were 202,500,000 rupees, all
of which were disposed of to our importers.
ARGENTINA, BOLIVIA AND PERU:—Transactions under the arrangements entered into between the United States and the Argentine, Bolivian and Peruvian Governments, for the stabilization
of exchange between the United States and those countries, also
came to an end during the past year. The Argentine Government has withdrawn a portion of the deposit held by us for its credit
under the terms of this agreement, but still retains a substantial
amount on deposit with us. Under the Bolivian agreement, which
provided for a maximum deposit of $5,000,000, we received $4,500,000, all of which was withdrawn during the first six months of the
past year. No operations wTere carried on through this bank under
the Peruvian agreement.
FOREIGN EXCHANGE REGULATIONS
During the first six months of 1919 the Division of Foreign
Exchange of the Federal Reserve Board released practically all of
the restrictions which had been imposed on foreign exchange transactions during the war in accordance with the President's executive
order of January 26, 1918. Regulations wrere issued permitting
transfers of funds to the countries to which remittances had been
prohibited during the war. On May 6, the Federal Reserve Board
removed the limitations which had previously been in force on
exportations of silver from the United States, and on June 9 the
Board announced that licenses for the exportation of gold would
be freely granted.
On June 26, 1919, the President issued a new proclamation
removing all restrictions from the exportation of coin, bullion, or
FEDERAL RESERVE BANK OF NEW YORK
33
currency, and from transactions in foreign exchange, except as
to (1) transactions with or for persons in that part of Russia under
the control of the so-called Bolshevik Government, and (2) the
importation of, or exchange transactions in Russian rubles.
Gold Imports and Exports
The control over the export of gold which had been exercised by
the Federal Reserve Board since September 7, 1917, under the
authority vested in it and the Secretary of the Treasury by the
President, was virtually terminated on June 9,1919, when the Board
announced that all applications for the export of gold would be
freely granted, irrespective of destination or amount. Prior to
the removal of these restrictions, greater latitude had been exercised
by the Board, following the termination of the war, in granting
applications for the export of gold. From January 1, 1919 to June
9, 1919, the Federal Reserve Bank of New York forwarded to the
Board 810 applications for permission to export gold, silver, or
currency, aggregating $151,811,816.82, of which it recommended
that 703 applications aggregating $138,258,264.62 should be granted.
In 1919 while the embargo was in force, the gold exported
from the United States under license from the Board aggregated
$14,000,000, while imports during that period were $44,000,000,
making a net gain in our gold supply from imports of $30,000,000.
The removal of restrictions by the Federal Reserve Board naturally
caused a large increase in our gold exports for June. During that
month they totalled $82,972,840 as against $1,956,135 for the
previous month. Imports of gold in June also showed a substantial
increase and totalled $26,134,460, which resulted in a net outward
movement during the month of $56,838,380. The monthly totals
of gold exports since June have been considerably less than the
amount shipped during that month, while imports have also declined. For the seven months from June 1 to December 31, the
aggregate amount of gold exports was $354,149,576, as against total
imports of $52,223,473, or a net outflow during the period of $301,926,103.
Acquisition of German Gold
The Federal Reserve Banks, however, received in London approxmately $173,000,000 in gold, representing payment by the German
Government for food-stuffs bought in the United States. That
amount was introduced into the gold reserves of the Federal Reserve
Banks and is, therefore, tantamount to an importation. Approximately $42,000,000 of this gold has been sold to banks for exportation to the Far East, and would have been withdrawn from this
country, if it had not been available in London. As a result of
34
FIFTH ANNUAL REPORT
the acquisition of this gold from Germany the net outflow of $301,926,103 mentioned above is reduced by about $131,000,000 leaving
a net loss of $170,926,103 since the lifting of the embargo. For
the entire year gold exports aggregated $368,185,248 as against
$41,069,818 during 1918, while imports for this year, exclusive of the
German gold, amounted to $76,534,046 compared with $62,042,748
in 1918. The net loss of gold through exports from this country
amounted to $291,651,202, but the acquisition of the German gold,
of which about $131,000,000 remained in the reserves of the Federal
Reserve Banks at the close of the year, reduced the loss to about
$160,600,000.
The largest portion of our gold exports during the year went to
Japan and China, including Hong Kong. The former took $94,
114,189 and the latter $79,195,738. The next largest amount,
namely $56,560,000, was consigned to Argentina. Substantial
amounts were also withdrawn for shipment to India and Spain.
Our exchanges with those countries were against us when the embargo was lifted and gold shipments were made in settlement of
adverse trade balances. More than 58 per cent, of our imports of
gold during the year came from Canada which shipped to us during
that period $44,487,390 and $10,017,550 in gold was received from
Hong Kong.
The German gold mentioned above, which this bank purchased
in May, 1919, from the United States Grain Corporation at bullion
value, consisted of approximately 730,000,000 German marks
against which we originally made an advance to the Grain Corporation of 92 per cent., or about $159,000,000, based upon a preliminary examination of the gold. This advance was later increased
to 98 per cent, or approximately $170,000,000, as more accurate
returns on the value of the gold were received. Two hundred and
ninety million marks of this gold was deposited with the National
Bank of Belgium, Brussels, and the balance, 440,000,000 marks,
with de Nederlandsche Bank, Amsterdam. * At our request the
Bank of England undertook the transfer of this gold from the Continent to London, and as it arrived at the Bank of England it was
introduced into our reserves and pro-rated among all the Federal
Reserve Banks. All of the gold has arrived at the Bank of England,
and most of it has been reduced to bars.
FEDERAL RESERVE BANK OF NEW YORK
35
ORGANIZATION OF THE BANK
Throughout the year the Board of Directors met weekly and the
Executive Committee daily, except on Saturdays and holidays.
Other committees of the board have held meetings as occasion
required.
One of the subjects to which the directors and officers gave special
attention during the first eight months of the year was the development of a form of internal organization which would facilitate the
most effective conduct of the bank. After thorough study and analysis, a plan was adopted which went into effect on September 2. It
has as its fundamental aim the separation of the functions of operation and organization, and involves placing the responsibility for
conducting each department upon its own chief administrative
officer and requiring it to transact completely the business falling
within its province. Every activity is definitely allocated to a
specific department, and responsibility is thus more definitely fixed.
The office of cashier, through whom all operating matters, in the last
analysis, formerly had to pass, is abolished.
The officers are grouped as follows:
A. Junior Officers
B. Senior Officers
C. General Officers
The junior officers are the Managers of the various departments.
Their title corresponds with the title of assistant cashier, formerly
used. Each one of these managers is responsible for the duties of
operation or organization as the case may be, which attach to his
department, and has working under him subordinates authorized
to sign within specified limitations, and a sufficient staff to complete
all business of his department.
Each of the senior officers, called Controllers, is assigned to one or
more of the functions of the bank and is responsible for the development of policies relating to his particular function, and for the super-*'
vision of the departments charged with carrying out the various
aspects of such function. The controllers, therefore, do not operate
the departments of the bank, but supervise and control their policies.
The number of managers atTpresent is 26, and the number
of controllers is 12. At present some of the controllers are acting
as managers, and some of the deputy governors are acting as controllers.
The general officers of the bank are as follows:
Governor
Deputy Governors
Chairman of the Board of Directors
36
FIFTH ANNUAL REPORT
These officers form the Managing Committee of the bank, with
which certain controllers are from time to time invited to sit. The
Managing Committee meets daily, except Saturdays. Its members
are not assigned to specific functions or departments of the bank,
but are concerned with general policies of administration.
Another aim of this plan of organization is to center greater responsibility upon the junior and senior officers, and to open to them more
opportunities for promotion than existed under the old form of organization where there was only one cashiership through which all
assistant cashiers would normally expect to receive promotion. The
plan of fixing operating responsibility has been extended even below
the rank of manager. In many of the departments there are divisions, each in charge of a chief, and many of the larger divisions
are divided into sections, each in charge of a supervisor.
The plan of organization has now been in operation about four
months, and seems to be working satisfactorily as a means of accelerating administration, and of fixing and developing responsibility.
A complete chart of the organization was issued and sent to all member banks on September 2.
The Staff of the Bank
For the past three years the clerical staff has maintained for purposes of education and recreation an organization of its own known
as the Federal Reserve Club, which now embraces almost the whole
body of employees. In order to increase the interest of the entire
staff of the bank in its operations a committee of the Federal Reserve Club meets from time to time with a committee of officers of the
bank to discuss matters relating to the welfare of the entire staff,
clerical and official.
From such conferences it is hoped that
important results will flow.
At the end of 1919, the staff of the bank, including the Buffalo
branch, consisted of 32 officers and 2,930 employees, an increase of
J7 and 300 respectively, during the year. The distribution of employees according to departments and a comparison with the
personnel of a year ago is given in Exhibit P in the appendix.
In many of the departments of the bank the cessation of hostilities
has not brought any relief from the pressure of work which prevailed
during the war. I t has not, however, been necessary as during
1918, to treble the staff; on the contrary, the staff has remained
fairly stationary and has therefore been far better able to keep up
the work of the bank than in the preceding year and shorter hours
have become possible, with far less evening work, so that compensation for overtime work which was inaugurated in February, 1918,
has been discontinued.
Living costs, however, continued to increase during the year, and
FEDERAL RESERVE BANK OF NEW YORK
37
the directors, with the approval of the Federal Reserve Board, supplemented the normal compensation of employees by additional payments to those receiving $6000 or less. Throughout the year the
entire staff of the bank maintained the fine spirit which was
developed during the war and which has been commented on in
preceding reports.
It is unfortunately necessary to record with the greatest regret
the retirement during the year of our inactive, as well as of two of
our active deputy governors. The expiration of the term of William
Woodward, Class A director, who since the organization of the bank
has been, though inactive, a deputy governor, and an active member
of its executive committee, deprived the bank of a devoted and
wise adviser. James F. Curtis, counsel of the bank since its organization, and for three years a deputy governor as well, retired
on August 1 to resume private practice after nearly five years of
constructive service to the bank of a nature for which his fine mind,
ability and experience particularly fitted him. Robert H. Treman,
Class A director of the bank since its organization, who on July 1,
1916, consented to serve as senior deputy governor during the illness
of Governor Strong, and who during the war felt it his duty to
accede to the request of the directors that he should continue his
active service was relieved from this service, at his insistent request,
on November 1. The minute adopted by the directors on his retirement is printed as Exhibit EE.
Bank Premises
In the course of the year the plot bounded by Liberty Street,
Nassau Street and Maiden Lane, acquired as a site for a building for
the bank, was enlarged from 33,509 square feet to 46,084 square feet
by additional purchases. The total cost of the entire property is
$4,797,881.72, at the average rate of $104.11 a square foot.
It was planned early in the year to proceed as soon as possible
with the erection of a building. Accordingly, with the assistance of
the consulting architect studies were made of its general requirements. The Board of Directors appointed a Building Committee
from its own members which should have power, subject to approval by the Board, to proceed with the conduct of a competition,
and the construction and equipment of the building. The consulting architect prepared a program of competition, and six of the
leading architects of New York City were invited to submit plans
and designs. The competition closed on October 9, and the designs,
which were submitted anonymously, were then studied by the consulting architect, the assisting architect and the Building Committee,
whereupon the directors of the bank, acting upon their recommendation, made an award without a dissenting vote. The successful
38
FIFTH ANNUAL REPORT
design was prepared by York and Sawyer, who thereupon became
the commissioned architects of the building.
In November the Federal Reserve Board expressed the view that
because of the shortage of labor and materials and the resulting high
prices, it was inopportune for the various Federal Reserve Banks to
proceed with their building plans, an opinion with which the directors
of this bank were in hearty accord. While the actual construction
has therefore been postponed to a more suitable time, various committees are working constantly with the architects in studying the
requirements of the bank and developing the plans so that they will
be well advanced, if not completed, when the time for building arrives. The Planning Committee, composed of officers of the bank
and the consulting architect, has made detailed studies of the organization of its departments with a view to their space requirements.
Election of Directors
To fill the vacancies caused by the expiration on December 31,
1919, of the terms of William Woodward and Henry R. Towne as
directors of Class A and Class B respectively, an election was held
December 2 to December 17. Both Mr. Woodward and Mr.
Towne expressed a desire not to stand for re-election, and the following candidates were nominated:
Class A—James S. Alexander, President of the National
Bank of Commerce in New York, New
York City.
Class B—Charles A. Stone, President of the American
International Corporation, New York City.
Mr. Alexander and Mr. Stone each received 59 votes and were duly
declared elected directors of their respective classes for a term of
three years, beginning January 1, 1920. Pierre Jay, Class C director
and Chairman of the Board of the Federal Reserve Bank of New
York since 1914, was re-elected a Class C director by the Federal
Reserve Board for a term of three years, and re-designated chairman
for 1920. The resignation of William Boyce Thompson, Class B
director since 1914, was accepted on December 22, leaving a
vacancy to befilledby election for the unexpired term ending December 31, 1920.
Member of the Advisory Council
On January 15th the directors elected A. Barton Hepburn, Chairman of the Advisory Board of the Chase National Bank, member
of the Federal Advisory Council from the Second Federal Reserve
District for the year 1919.
FEDERAL RESERVE BANK OF NEW YORK
39
THE BUFFALO BRANCH
The first branch of the Federal Reserve Bank of New York to
be established was opened for business at Buffalo on May 15, 1919.
The purpose was to make the facilities of the Federal Reserve Bank
more readily available to banks in the western part of New York
State. The territory assigned to the branch were the counties of
Monroe, Livingston, Allegany, Orleans, Genesee, Wyoming, Cattaraugus, Niagara, Erie and Chautauqua. It is optional with member
banks in those counties to deal with the Buffalo branch or with the
main office in New York.
The branch was placed in Buffalo, a city of more than 500,000
people whose industries are unusually diversified, because of its
commercial and banking importance. The branch was established
at the request of the Buffalo banks and all but one of the eligible
State institutions not already members of the Federal Reserve
System applied for and were admitted to membership. At present
there are 75 member banks with capital and surplus of $33,324,000
in the branch territory, aside from 84 non-member institutions.
Functions of the Branch
The by-laws adopted for the branch permit it to exercise many of
the functions which had been performed at the main office in New
York; nevertheless an intimate connection is to be maintained in
all of its operations between the branch and the bank in New York.
It is permitted to receive from member banks and other Federal
Reserve Banks checks and drafts for collection on the same terms
and conditions as they are received by the Federal Reserve Bank
in New Y^ork. It sends items direct to all member and non-member
banks on the par list in this district for payment by remittance to
the Federal Reserve Bank of New York in New York funds or, if
preferred, for payment by remittance to the Buffalo branch in
Buffalo funds. In either case a single remittance may be made for
letters received from both New York and Buffalo. It receives
deposits from member banks and makes payments of money to or
through them for the account of other member banks. These
payments include the supply of currency in all denominations. It
makes telegraphic transfers without charge for the account of member banks and Federal Reserve Banks. It collects maturing notes,
drafts, bills of exchange and coupons for member banks in the Second Federal Reserve District, for the Federal Reserve Bank of
New York or for other Federal Reserve Banks. It receives from
member banks within its territory applications for discount of
eligible paper, which are sent to New York, with recommendations
by the Buffalo branch, for final action and credit, or for such other
disposition as may be desired for the applying member bank. It
40
FIFTH ANNUAL REPORT
pays Government checks, Liberty bond coupons, maturing United
States certificates of indebtedness and other Government obligations, and also receives and holds securities for safekeeping for the
account of member banks in its territory.
Advantages of its Operations
These facilities have worked to the very material advantage of
the banks in Western New York and particularly of the Buffalo
banks. At the time the branch was established the rules of the
Buffalo Clearing House were amended so that all balances due as
the result of the daily clearings could be settled on the books of the
branch. Consequently the exchange of currency in settling clearing
house credits or debits has been eliminated entirely. Banks within
the city or adjacent to it have been enabled to reduce materially
the amount of vault cash, because it is always possible to obtain
currency of all denominations from the Buffalo branch. They are
able also to save one day's time in collecting their outgoing checks
by depositing them at the Buffalo branch instead of by mailing
them to the New York office or to other correspondents. They are
able to conduct transactions directly with the Buffalo branch which
relate to Government business, such as the redemption of certificates
of indebtedness, the payment of Government coupons, checks, etc.
The volume of transactions of the Buffalo branch from the
moment it was opened and the increase since that time has demonstrated its value. Its business was conducted in the beginning by
a staff of forty employees, who had been trained in the main office
and who were temporarily assigned to the work at Buffalo. They
returned to New York as rapidly as employees could be selected
locally and instructed in their duties. The growth of the business
has required an increase from time to time in the number of employees. The staff now consists of two officers and ninety-two
employees. The following table gives a comparison between certain of the chief operations of the branch for June, 1919, the first
full month of operation, and for the last month of the year:
December
June
Currency received
$5,432,645.00
$9,214,681.00
Currency disbursed
12,366,000.00
4,527,000.00
108
Discount applications received, number
27
Amount
$10,399,440.85 $48,654,889.24
Collections handled, number
3,972
2,177
Amount
$4,329,684.41
$903,980.78
Checks and transit items handled, number
637,810
368,076
Amount
$145,418,158.69 $202,173,743.64
24,531
Daily average
14,723
$4,494,500.00
Government certificates of indebtedness redeemed. . $9,476,000.00
Government coupons paid, number
59,785
121,259
Amount
$323,870.96
$1,011,861.09
Ill
FISCAL AGENCY OPERATIONS
The Sale and Handling of Government Issues
The sale of the Victory loan in the spring of 1919 was the final
stage in the great series of Treasury operations for funding the
country's war indebtedness. Like its predecessors the Victory
loan presented a problem which was not limited to selling bonds,
but extended to the creation of a new public attitude toward investments. The Federal Reserve Banks were again the chief agencies
utilized by the Treasury Department and its War Loan Organization in selling the Government obligations. With the conclusion
of the Victory loan campaign the Government's current financial
needs were not satisfied, but short-time financing in the form of the
certificates of indebtedness supplied the funds which the Government's financial program required. To the Second Federal Reserve
District, because of its position at thefinancialcenter of the country,
fell naturally the obligation of selling more notes and more certificates of indebtedness than any other Federal Reserve district was
called upon to take. In the twenty-six months from our entrance
into the war up to the end of the Victory loan campaign on May
10, 1919, the banks and organizations working with the Federal
Reserve Bank of New York sold $6,259,990,600 Liberty bonds and
Victory notes, and up to December 31, 1919, certificates of indebtedness amounting to $11,019,491,000.
CERTIFICATES OF INDEBTEDNESS
With the announcement of the Secretary of the Treasury that the
Victory Loan would conclude the series of long-term issues, certificates of indebtedness became thenceforward the chief medium of
treasury financing. Though in the case of four issues, put out subsequent to the Victory Loan, the certificates were not nominally to
be paid from the proceeds of taxation, yet according to the Secretary's statement made at the close of the year, they were to be
redeemed partly out of the funds already in hand, and partly from
the proceeds of tax certificates then about to be issued. Thus the
year saw an end of long-term financing, a decrease in the floating
debt of the country, and the establishment of a plan of redemption
by which certificates were to be paid and gradually reduced in
volume out of tax receipts.
In the twelve months of 1919 there were sold through the Federal
41
FIFTH ANNUAL REPORT
42
Reserve Bank of New York a total of $4,506,155,500 of certificates
of indebtedness, making a total of $11,019,491,000 since the war
began and approximately 42.6 per cent, of all the certificates sold
in the country since the issues were initiated. The record by years
was as follows:
Tax
Certificates
Loan
Certificates
Total
Tax and Loan
Certificates
1917.. $494,070,500 $1,928,005,000 $2,422,075,500
733,016,000 3,358,244.000
1918..
4,091,260,000
1919.. 1,982,883,000 2,523,272,500
4,506,155,500
Total.. $3,209,969,500 $7,809,521,500 $11,019,491,000
Per Cent.
Total
of
Tax and Loan Certificates
Certificates j Taken by
for Country
Second
District
$3,880,570,000
62.4
10,742,094,000
38.1
11,246,779,000
40.1
$25,869,443,000 I 42.6
Of the 23 issues of certificates during the year, 8 were in anticipation of the Victory loan, 11 were payable from taxation and 4 were
of the " 1920 series," to which reference was made above. Detailed
information on these issues appears in Exhibit Q in the appendix.
The plan adopted in 1918 of establishing bank quotas for bi-weekly
or semi-monthly subscriptions to other than tax issues was continued up to August 15. These quotas varied from 1.6 to 2.5 per
cent, of the total resources of each bank. By September the requirements of the Treasury were so far reduced that the issues became
less frequent. The assignment of quotas was abandoned and the
banks subscribed upon their own initiative. Nevertheless, the
sales of certificates of the T-10 issue of September 15 in the Second
District were $412,319,000, which was greater than for any previous
issue of the year.
The general participation by the banks of this district in the
purchase of certificates is shown by the fact that all but 84 out of a
total of 1,262 commercial and savings banks in the district appear
in the list of subscribers. The banks outside New York City received allotments to Victory loan certificates of 101 per cent, of
their total quota, as against 108 per cent, in the case of the Fourth
Loan certificates, and New York City banks received allotments of
126 per cent, of their quota to Victory loan certificates as against
135 per cent, to Fourth loan certificates.
Stated in tabulated form, the subscriptions for the year allotted
to the various classes of banks were as follows:
Class of Bank
National...
State
Trust Companies. .
Savings
Individuals and Firms
Total
Number
in Second
District
632
245
207
178
Number
Subscribing
624
234
196
124
1,262
1.178
Allotment
$2,512,341,500
326,610,000
1,360,762,500
42,305,000
264,136,500
$4,506,155,500
Per Cent,
of Total
Allotment
55.8
7.2
30*2
Q
5^9
100.0
FEDERAL RESERVE BANK OF NEW YORK
• •»•
\
100C
111*
\
.•
1000
Q
43
\
%
.•"
JAN. FEB
APR
«*
MAY
• • ••
JUL
AlJd
tFP
OCT
NOV.
Certificates of Indebtedness outstanding (dotted line), compared with
total held by reporting banks (solid line), Second Federal
Reserve District, 1919. (In millions of dollars)
The usual method of payment by book credit was continued as
in previous years. According to this plan credits in favor of the
United States are opened on the books of the banks, the deposits
so created are called for as occasion demands, and the withdrawals
are made ratably among the various depositaries.
It is noteworthy that the banks, particularly in the later issues,
have been able to resell a large portion of the certificates to which
they subscribed, thereby reducing the volume of Government obligations which they have been in the habit of holding heretofore.
The chart at the head of this section shows the volume of certificates
issued in this district and outstanding on each Friday throughout
the year, and at the same time shows the amounts held by the 112
reporting banks of the district, which represent approximately
77 per cent, of the total banking resources of the district. Exhibit
R in the appendix gives the figures illustrated in the chart.
The redemption of certificates in this district has been materially
in excess of sales, indicating that many certificates sold in other districts have been sent to this market prior to their maturity dates.
The total amount redeemed through this bank up to December 31
was $4,351,057,500, of which $2,872,177,500 were redeemed in cash;
$646,031,500 were exchanged for other issues, and $832,848,500
were presented in payment for bonds and in payment of taxes. The
details appear in Exhibit S in the appendix.
The Victory Loan
As in previous loans the amount subscribed in the Second Federal
Reserve District to the Victory loan exceeded the quota assigned.
Total subscriptions exceeded the quota by 31 per cent.,thus placing
the New York District at the head of all districts, not only in the
total sold but in the excess subscribed above the quota assigned.
The number of subscribers was less than in either the Third or Fourth
FIFTH ANNUAL REPORT
44
loans, and the average subscription was greater than in either of
those loans. The reduction in the number of subscribers is
accounted for mainly on the ground that many subscribers on partial
payment plans were still paying on the two previous loans.
Furthermore, the sense of universal obligation present in the campaigns when the country was still at war had somewhat passed.
The increase in the size of the average subscription was a reflection
of the greater financial attractiveness of the Victory loan.
The sales in the Second Federal Reserve District have been as
follows:
Loan
Quota
Amount
Subscribed
Amount
Allotted
First
Second
Third
Fourth
Victory
$600,000,000
900,000,000
900,000,000
1,800,000,000
1,350,000,000
$1,186,788,400
1,550,453,450
1,115,243,650
2,044,901,750
1,762,684,900
$617,831,650
1,164,366,950
1,115,243,650
2,044,901,750
1,317,646,600
Total
$5,550,000,000
$7,660,072,150
$6,259,990,600
Number of Average Amount
per
Subscribers Subscription
Capita
978,959
2,182,017
3,043,123
3,604,101
2,484,532
$1,212.29
710.55
366.47
567.39
709.47
$94.67
123.69
88.98
163.14
140.62
The "borrow and buy" campaign, by which the banks gave
generous aid to subscribers who wished to pay for their purchases
out of future earnings, was continued. The terms made by New
York City banks and widely advertised, allowed the investor to
borrow at 4 ^ per cent, for ninety days with the privilege of one
renewal; thereafter the banks made varying agreements with subscribers. The distribution of subscriptions according to size is
shown in Exhibit T; the distribution according to the several
classes of banks through which subscriptions were received is shown
in Exhibit U; and the record of the various geographic subdivisions of the Second Federal Reserve District is shown in Exhibit
V. Similar figures for the Third and Fourth loans will be found in
the annual report of the Federal Reserve Bank of New York for 1918.
Government Loan Organization
The sale of the Victory loan was carried on along the same
general lines as those described for previous loans in the annual
report for 1918. The central organization, however, was more
closely knit than before. It was subordinated to the director of
the Government Loan Organization, who was the executive representing the Liberty Loan Committee, of which the Governor of
the Federal Reserve Bank was chairman. The personnel of the
Liberty Loan Committee was identical with that in previous campaigns and comprised fifteen bankers, who devoted themselves to
the success of the loan. The work of carrying out the plan of campaign under the supervision of the director was in the hands of
three vice directors, who were in charge respectively of sales, pub
FEDERAL RESERVE BANK OF NEW YORK
45
licity and women's activities. At its height there were 1,725 paid
employees in the loan organization, aside from those carrying on
the regular operations of the bank arising out of the sale of notes
and bonds.
The Sales Organization
Through the vice director in charge of sales was coordinated the
work of selling the Victory loan, both in the City of New York and
in other parts of the Federal Reserve District. Save for improvements in the administration scheme, the methods employed were
similar to those previously used, and operated with the same success.
In the Metropolitan district the results obtained by the two
major canvassing organizations deserve special reference. The
Advisory Trades Committee, which was the central operating
organization for eighty-one committees, each representing a group
of trades or industries of similar character, secured subscriptions
from corporations, firms and from their employees. The subscriptions received by this organization in the four loans during which
it was in operation were as follows:
Second Loan
Third Loan
Fourth Loan
Victory Loan
Amount
Subscriptions
$401,099,200
564,767,950
1,083,861,000
633,471,500
Total
$2,683,199,500
The other great working sales organization in the central boroughs
was the Metropolitan Canvass Committee which held innumerable
street meetings, many large mass meetings in public halls and armories, and conducted an active personal campaign, thereby making
sure that every person in the centres of population was asked to
participate in the Victory loan.
Outside the Metropolitan District the campaign was divided as
before among eight subdistrict chairmen, who were the headquarters
representatives of 2,012 local Victory loan committees, each with
its chairman and members drawn from the leading citizens of the
neighborhood. The work of these local committees in cities like
Buffalo, Rochester, Syracuse, Albany, Newark and other large
cities, approximated the intensive campaigning done in the City
of New York, and many individual plans were successfully carried
out. In the country districts the work was frequently done by the
chairman and a small group of patriotic citizens who sold notes to
their neighbors by house to house solicitation. Altogether there
were upwards of 30,000 members of local committees.
46
FIFTH ANNUAL REPORT
Women's Activities
In the Victory loan the work of women was closely connected not
only in the central organization, but in the local committees, with
the work done by men. It was felt that the best results would be
obtained by concerting the two sets of organizations. In the Victory loan there were 1,790 local committees organized in seventytwo counties, with about 35,000 workers. The subscriptions
secured amounted to $247,685,450, about $45,000,000 more than
in the Fourth Liberty loan. Many of the subscriptions were in small
amounts. Altogether the women's organization was responsible
for 20 per cent, of the number of subscriptions and 18 per cent, of
the amount of notes sold in this district.
Publicity
The conditions under which the Victory loan was sold were unlike
those of previous campaigns. Though peace was not yet officially
established, fighting was at an end. Soldiers were returning from
France with every manifestation of public rejoicing in contrast with
their silent, unnoted departure a few months before. The war in
the minds of the public at least was ended, and the popular relief
was already showing itself in the great increase of private spending
that reached such volume in later months. The problem which
confronted the officers in charge of publicity was how to turn the
public, temporarily at least, from spending to investing.
There were many who urged that the loan must be sold, as they
said, "as a cold business proposition"—in other words, that the
people could be expected to listen only to straight commercial
argument. The loan was not placed on any such limited appeal.
The central thought was presented in a poster received from the
War Loan Organization at Washington which showed a mechanic
putting his hand into his pocket and saying, "Sure! We'll finish the
job." America had undertaken to do something and America was
bound to see it through.
Aside from a great outpouring of printed matter and the use of
other publicity devices already familiar in previous loans there were
certain new elements of publicity which were peculiar to the time.
The Seventy-seventh Division, made up of men drawn from the
City of New York, returned at the height of the loan campaign and
their parade in New York City on May 6, while not designed primarily as a part of the campaign procedure, nevertheless was an
important factor in pitching the public mind to a high key of patriotism.
The Panorama of Victory parade, which took place on May 3, was
prepared by the War Department at the particular instance of the
FEDERAL RESERVE BANK OF NEW YORK
47
Government Loan Organization and for diversified interest surpassed any parade ever seen in this country. Every device of
modern warfare was exhibited and produced in the streets of New
York. The exhibits varied from battle tanks and huge artillery to
the devices of chemical warfare in action.
Victory Way, an extraordinary artistic and architectural development in Park Avenue north of the Grand Central Terminal, was
the out-of-door meeting place for the campaign in the City of New
York and served the purpose for which the Liberty Altar at Madison
Square was constructed in the Fourth Liberty loan. There captured German guns were on exhibition and at each end of the plaza
were pyramids of German helmets, captured behind the lines in
France where they had been held in readiness for the use of the
German armies when they should enter Paris.
Outside the City of New York there were parades and similar
exhibitions held by the local committees. Aeroplanes, tanks and
captured German submarines were sent throughout the district and
were the centers for patriotic meetings and enthusiasm for the loan.
Altogether 80,000,000 pieces of Liberty Loan advertising material
varying from pamphlets and posters to small printed leaflets and
paper and pasteboard novelties were distributed, thereby insuring
that the message of the Victory loan was carried not only once but
many times and in many different ways to every inhabitant of the
district. Advertising space purchased from funds contributed by
individuals, corporations and firms amounted to over $300,000,
and in addition space valued at $66,000 was turned over to the committee for its use. The newspapers in their news columns printed
a great amount of news of the Victory loan and in the City of New
York the aggregate space amounted to over 4,100 columns.
Innumerable meetings were held for the purpose of conveying
by word of mouth the meaning of the Victory loan. Carter Glass,
Secretary of the Treasury, addressed a meeting in New York City
on April 15 just prior to the beginning of the loan campaign. At a
meeting addressed by ex-President Taft at the Metropolitan Opera
House subscriptions were received to the amount of $125,000,000.
Other meetings were held every evening indoors and on street
corners, and a meeting held at Times Square at the conclusion of
the campaign lasted continuously for thirty-six hours.
Elsewhere in the district, in the cities, towns and villages, meetings
of citizens were productive of subscriptions to a very large total.
D i s b a n d i n g t h e Organization
With the close of the Victory loan campaign it was apparent that
even the nucleus organization which had been established for Liberty
loan purposes prior to the Third loan and served continuously
48
FIFTH ANNUAL REPORT
between campaigns as well as during them, would no longer be
necessary. Consequently, steps were taken to relieve employees
of Government Loan work as rapidly as the end of their duties
permitted. An organization was established which undertook to give
every possible aid in securing employment for both men and women
employees and through it many of them were placed, a considerable
number in the Federal Reserve Bank. In conformity with a schedule
approved by the Treasury Department the employees who were
released received compensation for a period of weeks or days after
the termination of service, varying according to the length of their
employment.
While the former Government Loan Organization was being disbanded that part of it which had to do with the sale of War Savings
Stamps and certificates of indebtedness was in some degree augmented. It was necessary also to retain for a year the staff handling
partial payment accounts and also for some time that part of the
organization which has to do with the payment of bills and securing
reimbursement from the Treasury Department. To this latter
group fell also the duty of assembling the records of the headquarters
organization and of local committees throughout the Second Federal
Reserve District, and of collating and filing them in such a way that
they may be accessible for reference in the future. It had also
the obligation of disposing of leases and surplus equipment according to terms prescribed by the Treasury Department. Up to
December 31 sales of used furniture and other equipment realized
$62,000.
Partial Payments
The marked success of the partial payment plan adopted in the
Third and Fourth loans for the Metropolitan District demanded that
it be followed again in the Victory loan. Under this plan books
were sold during the loan campaign which called for forty-eight
weekly payments instead of twenty-four as in the Fourth loan, and
the book itself had at once a more attractive and a less expensive
form. In addition to books providing for the purchase of $50 and
$100 notes as in previous loans, books were sold for $500 notes also.
Initial payments were 4 per cent, of the face value of the notes subscribed for, and subsequent weekly payments were at the rate of
$1, $2 and $10 respectively. These weekly payments were acknowledged by the issue of gummed receipts which were placed in the
books as a record of payments, and a follow-up method of reaching
delinquent subscribers was provided for. These gummed receipts
were issued at 986 banks and payment stations in the metropolitan district. Upon completion of all payments, whether
anticipated or not, the book is exchanged for a Victory note at any
FEDERAL RESERVE BANK OF NEW YORK
49
bank or at the office of the Victory Loan Association, the organization established for carrying on the plan.
The par value of the bonds sold on this partial payment plan in
the Victory loan was greater than in either of the previous loans,
and the number of subscribers was greater than in the Fourth loan
but somewhat below that of the Third loan. The comparison is as
follows:
Number of
Books Sold
Par Value
Third loan
836,747
$48,744,300
Fourth loan
786,995
44,277,550
Victory loan
797,384
51,197,850
Total
2,421,126
$144,219,700
For the purpose of financing the sale of Victory notes on the coupon
book plan a syndicate was formed to include 137 banks and trust companies of Greater New York, Jersey City and Hoboken. Although
these institutions assumed a maximum underwriting liability of
about $110,000,000, they were actually called upon to supply only
$25,000,000. This money called from the banks as needed in connection with the Government payments, together with about an
equal amount received from subscribers, financed the purchase of
the total sales of nearly $51,200,000.
The cost of carrying on the Victory Loan Association is considerably lower than for similar organizations in the previous loans,
partly due to improved methods. The number of employees
required to handle the operation was about 130.
The schedule of payments on the Third and Fourth loans, partial
payment plan, expired just prior to the opening of the Victory Loan
campaign. The association has, however, permitted delinquents to
make full payment or otherwise settle their accounts throughout the
year, and bonds of those loans are still being delivered to subscribers.
The number of persons calling at the office of the association to pay
in full and receive their bonds, or to make inquiry about their subscriptions to the Victory or prior loans, has reached in a single day
as high as 17,000.
Outside the Metropolitan District banks and committees were
supplied with partial payment punch cards as heretofore, and a new
device consisting of a book of receipts was used in addition with
considerable success.
WAR SAVINGS AND POST-LOAN ACTIVITIES
On January 1, 1919, the work of the War Savings Committee in
this district was consolidated with that of the Liberty Loan Committee, and thenceforward the work of both was conducted by the
Government Loan Organization under the direct control of the
50
FIFTH ANNUAL REPORT
Governor of the Federal Reserve Bank of New York. The conduct
of the Victory loan campaign under the guidance of this organization has been described above. Simultaneously, but with particular
emphasis at the time when the Victory loan campaign was not being
carried on, the War Savings branch of the organization was actively
at work, under the supervision of a vice-director of the Government
Loan Organization who also was its director of publicity. Its
primary purpose was to impress upon the 12,000,000 persons in
the Second Federal Reserve District the importance of saving and
investing in Government Savings and Thrift stamps. Its method
of operation provided for the establishment of War Savings societies among employees in factories, offices, stores; among school
children, members of racial groups, fraternal lodges, etc.
In midsummer, when the work of selling the Victory loan was
ended, the organization was remodeled so as to carry on the continuing savings and sales campaign of the Treasury Department
and became one of the integral functions of the Federal Reserve
Bank. Its activities included the sale of certificates of indebtedness, of thrift and savings stamps and the new Treasury savings
certificates, first issued in July, which were in denominations of
$100 and $1,000 maturity value; a campaign through publicity
and personal contact to encourage saving and investing in Government securities; a campaign to prevent solicitation of the public
to part with Liberty bonds and War Savings stamps at rates below
the market or redemption value, as the case might be; and a movement to encourage purchases of Government securities in the open
market and to discourage unnecessary sales.
An extensive volunteer organization covering the entire Second
Federal Reserve District was maintained under the leadership of
2,400 bankers and business men acting as chairmen of county and
town committees. Numerous meetings were held to prosecute the
"Work and Save" campaign and publicity material was circulated
as previously, though in diminished volume.
Gross sales of thrift and savings stamps and savings certificates
in 1919, as reported to the organization, are shown by months as
follows:
Month
Cash Value
January
February
March
April
May
June
July
August
September
October
November
December
Total
$2,440,365.25
l,040;842.43
1,015,344.14
1,232,621.77
993,777.36
827,859.83
743,088.40
587,069.55
1,226,839.45
1,283,850.06
1,250,710.71
1,849,644.60
$14,492,013.55
FEDERAL RESERVE BANK OF NEW YORK
51
GOVERNMENT DEPOSITS
The plan of depositing the proceeds of sales of Liberty bonds
and certificates of indebtedness in qualified depositary banks was
continued during the year by the Treasury Department. The
Federal Reserve Bank, which appointed the depositaries, has had the
responsibility of receiving and approving collateral, depositing
and withdrawing funds, and collecting interest on deposits, all
under the instruction and supervision of the Treasury Department.
The qualified depositary banks were permitted under the law to
pay for certificates of indebtedness and Liberty bonds by opening book credits in favor of the Federal Reserve Bank of New York
as fiscal agent of the United States, "War Loan Deposit Account."
Through the creation of these deposits and their withdrawal only
as funds were needed for disbursement, disturbances to the money
market were reduced to a minimum.
The withdrawal of deposits has been uniformly made on instructions from the Treasury Department on a pro rata basis, which
has been the same for all depositary banks in the district, and notice
of forty-eight hours or more has been given whenever possible.
Funds deposited for use of the disbursing officers of the United
States Army and Navy in foreign branches of qualified depositaries were secured bjT collateral pledged with us.
The number of banks qualifying as depositaries increased from
867 in the Fourth loan to 889 in the Victory loan. Custodians of
collateral acted in 35 cities, a reduction from the earlier loans.
Collateral agents of the second class for the sale of Treasury
Savings certificates, War Savings Certificate stamps and thrift
stamps, were appointed by the Federal Reserve Bank, which received the securities pledged by them as collateral.
This year internal revenue collectors deposited with us for the
credit of the Treasurer of the United States, checks representing
payments of income and excess profits taxes, but these funds were
not redeposited with depositary banks as was the case during June,
1918, inasmuch as the funds were required in most instances for
immediate disbursement. Receipts were as follows:
Income Tax Receipts—March 15 payment
June 15 payment
September 15 payment
December 15 payment
$317,089,000
298,093,000
291,262,000
272,046,000
— $1,178,490,000
Maximum deposits and securities pledged were:
Liberty loan funds, largest amount on deposit, June 7
$409,356,104.02
Certificates of indebtedness funds, largest amount on deposit, September 17
538,036,000.00
Securities in vault, largest amount, June 10
793,937,822.96
Securities with custodians, largest amount, May 20
152,334,966.77
52
FIFTH ANNUAL REPORT
DELIVERIES, EXCHANGES AND CONVERSIONS
The work of the Government Bond Department, which conducts
the issue, conversion and exchange of denominations of Government securities and pays Government coupons, has not diminished
with the conclusion of the Liberty loan campaigns; on the contrary it has increased. This growth is accounted for partly by the
large volume of sales in the market of Liberty bonds and Victory
notes of small denominations which involve exchange into higher
denominations, and also by the tendency of bonds sold in other
districts to come to the New York market for sale. A summary
of the operations of this department involving more than six and
one-third billion dollars, and the handling of more than 52,000,000
individual pieces, appears in Exhibit X in the appendix.
In issuing Victory notes under the allotments made by the
Treasury Department in this district, the transactions were as
follows:
Cash sales during campaign
Total receipts, including cash sales:
Principal
Accrued interest
Method of payment:
Certificates of indebtedness
Advice of credit
Cash
Bonds full-paid on
First installment date
Second installment date
Third installment date
Fourth installment date
Fifth installment date
Sixth installment date
Bond deliveries:
Coupon bonds
Registered bonds
Number of pieces delivered:
Coupon bonds
Registered bonds
$370,170,500.00
$1,318,020,490.00
3,099,150.81
$567,474,000.00
604,810,765.62
148,844,975.19
$757,681,700.00
55,807,100.00
15,701,300.00
14,045,000.00
34,850,550.00
69,764,650.00
$1,230,149,650.00
87,342,050.00
3,171,437.00
91,156.00
The classification of payments for the Victory loan and for such
installments of the Fourth Liberty loan as were payable in 1919,
appears in Exhibit Y in the appendix.
The conversion of bonds from one interest rate to another
within the Treasury Department conditions, reached a total for
the year of $363,814,200, par amount, in 478,587 pieces. Of
these by far the largest in number were coupon bonds. The following table shows the aggregate of bonds and notes converted
in 1919 and previous years, issue by issue:
FEDERAL RESERVE BANK OF NEW YORK
53
First %% per cent, bonds to 4 per cent. (Nov. 8, 1917-May 15, 1918)...
Number of deliveries, pieces
$113,385,650
737,852
First 4 per cent, bonds to 4X per cent
Number of deliveries, including deliveries made on converting
First 3y£ per cent, to 4}4 per cent., pieces
$85,686,150
Second 4 per cent, bonds to 4 ^ per cent
Number of deliveries, pieces
307,385
$1,155,386,800
1,772,055
Victory 3^< per cent, to Victory 4-K per cent
Number of deliveries, pieces
$7,551,500
7,551
Victory 4%" per cent, to Victory 3 ^ per cent
Number of deliveries, pieces
$210,930,400
154,466
Aggregate number of pieces handled (Incoming and Outgoing)... .
4,957,039
The great volume of small denomination bonds received for
exchange for bonds of higher denominations, chiefly $1,000—in
certain issues the number of $50 or $100 bonds received for
exchange has been greater than the number originally issued in
this district—manifests the surrender of bonds by many small
holders. Nearly 11,400,000 pieces have been received by this
bank as against 2,300,000 pieces delivered. The total of exchanges
in 1919 was $1,443,844,500 in par amount.
The receipt of coupon bonds for exchange into registered bonds
and vice versa, and the receipt of applications for transfer between
holders of registered bonds, involved a total of $373,193,650 par
amount, divided among 55,538 individual applications. Inasmuch
as the records of registered bond holders are maintained in the
Treasury Department at Washington the action of the Federal
Reserve Bank is limited to the receipt and delivery of such bonds.
The payment of coupons on Government bonds, Federal Land
Bank Farm Loan bonds and War Finance Corporation bonds has
increased materially during the year because of new issues. Over
28,000,000 coupons have been paid, involving nearly $200,000,000.
The largest number of coupons paid on any one day was 1,500,000
on December 15.
Government Disbursements
Disbursements by the Treasury Department through this bank
have continued in very large volume throughout 1919. Nearly
13,000,000 Treasury checks were handled as against 11,100,000 in
1918, but the average size has been somewhat smaller. Consequently the total of nearly $5,000,000,000 for a year ago was not
reached. The day of largest transactions was on April 21, when
96,153 checks were handled. The list given below does not include
payments on maturing certificates and coupons:
FIFTH ANNUAL REPORT
54
Payment of Treasury Checks
Number
Amount
January..
February.
March
April
May
June
July
August...
September
October...
November
December.
,346,636
,090,651
,248,956
,512,011
,228,484
,013,729
919,026
887,639
897,670
,017,618
901,552
912,270
$456,000,825.55
302,418,492.81
313,256,046.12
263,723,362.87
264,662,801.77
223,685,876.98
363,696,609.40
580,671,251.78
461,441,135.45
328,783,03(U7
284,632,974.56
488,919,001.75
Total.
12,976,242
$4,331,891,418.21
APPENDIX
EXHIBITS
LETTER
A
B
C
D
E
F
G
II
I
J
K
L
M
N
0
P
Q
R
S
T
D
V
W
X
Y
7.
AA
BB
CC
DD
EE
TITLE
PAGE
Rates of Discount .
.
.
.
.
.
.
.
.
.
50
Capital Account Reconciliation
.
.
.
.
.
.
.
57
Earning Assets, 1919
.
.
.
.
.
.
.
.
.
62-63
Discounts a n d Advances .
.
.
.
.
.
.
.
.
64
Purchases from the Treasury .
.
.
.
.
.
.
.
65
Reserve Position, 1919
66-67
Gold Reserves
.
.
.
.
.
.
.
.
.
.
6 9
Open Market Acceptance Purchases
.
.
.
.
.
70-71-72
Acceptances Rediscounted, 1919
.
.
.
.
.
.
.
7 3
Federal R e s e r v e N o t e s ( M o v e m e n t of)
.
.
.
.
.
.
74
F e d e r a l R e s e r v e N o t e s ( S u m m a r y of Issues, e t c . )
.
.
.
.
74
Check Collections .
.
.
.
.
.
.
.
.
.
75
Gold Settlement Fund
77
National Banks with Fiduciary Powers
.
.
.
.
.
78-79-80
Acceptors to 100 p e r cent
.
.
.
.
.
.
.
.
81
P e r s o n n e l of t h e B a n k
82-83
Certificates of I n d e b t e d n e s s (Issues a n d Subscriptions, 1919)
.
.
84
Certificates of I n d e b t e d n e s s ( A m o u n t s held b y B a n k s , etc.) •
•
•
85
R e d e m p t i o n o fCertificates of I n d e b t e d n e s s , 1 9 1 9
.
.
.
.
86-87
Victory Loan (Subscriptions b y Amount) .
.
.
.
.
.
88
Victory Loan (Subscriptions b y Banks)
.
.
.
.
.
.
88
Victory L o a n (Geographic Sub-divisions) .
.
.
.
.
.
89
Government Loan Expenses
.
.
.
.
.
.
.
.
8 9
Government Bond Transactions
.
.
.
.
.
.
.
91
L i b e r t y L o a n P a y m e n t s ( M e d i u m of P a y m e n t , F o u r t h L o a n , 1 9 1 9 ,
and Victory Loan) .
.
.
.
.
.
.
.
.
91
Security Sales a n d Issues ( N e w Y o r k Stock E x c h a n g e , etc.)
.
.
92
M o n e y i n N e w Y o r k , 1919 ( R a n g e of R a t e s )
93
L i b e r t y B o n d P r i c e s , 1 9 1 9 ( R a n g e of Q u o t a t i o n s , etc.)
.
94-95-96
L o a n s a n d D e p o s i t s ( N e w Y o r k C l e a r i n g H o u s e Banks!*
.
.
.
97
Loans and Investments, Reporting Banks
.
.
.
.
.
98
D i r e c t o r s ' M i n u t e o n R e t i r e m e n t of R . H . T r e m a n
.
.
.
.
100
CHARTS
NUMBER
TITLE
1
2
3
C l a s s i f i c a t i o n of R e s o u r c e s
C l a s s i f i c a t i o n of L i a b i l i t i e s
Earnings and Expenses .
4
5
M o v e m e n t of E a r n i n g A s s e t s d u r i n g C a l e n d a r Y e a r , 1919 .
.
.
N e t Deposit Liability, F . R. N o t e Circulation, Cash Reserves, a n d
R e s e r v e R a t i o , 1919
.
A v e r a g e N u m b e r of C h e c k s H a n d l e d D a i l y
.
.
.
.
.
A m o u n t d u e f r o m S p e c i a l D e p o s i t a r i e s of G o v e r n m e n t F u n d s
.
.
T o t a l L o a n s a n d I n v e s t m e n t s a n d T o t a l D e p o s i t s of R e p o r t i n g M e m b e r
B a n k s ; a n d T o t a l E a r n i n g Assets of F e d e r a l R e s e r v e B a n k of N e w
York
6
7
8
.
.
.
.
.
PAGE
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
58
59
60
61
68
76
91
99
en
Exhibit A
RATES OF DISCOUNT
Effective at the Federal Reserve Bank of New York in 1919
Special
Trade
15 Days or less 16 to 90 Agricultural Secured by
Liberty Bonds Acceptances
(Including
Days
Paper
Collateral
Indus- 91 Days to or U. S. C. of I.
16-90 Days
Loans)
6 Months 16-90 Day
Rediscount of
Bankers Acceptances
15-60-90 Days
15
January
February
March
April
May
June
July
August
September
October
November 1-3. .
November 5-30.
December 1-11..
December 12-30.
December 31
J4
4%
4*4
4%
4%
*VA
4%
4%
4X
4)4
434
y2
434
434
y2
4y2
4y2
4y2
4y2
y2
434
61-90
4A
4A
A
4y2
4%
4y2
4y2
4y2
4y2
4y2
A
4A
4%
y2
4y2
4y2
y
16-60
^A
A
y2
4%
434
4A
4y2
4y2
4y2
434
y2
4y2
4y2
4y2
4y2
4%
434
Open Market Purchases,
Bankers Acceptances
Authorized
Rates
Minimum
Actual
Rates
4-434
y
4-4 %
4-434
4-434
4-434
4-434
4-434
4-434
4-47/8
4-4%
*0nly certificates of indebtedness bearing 4% per cent, interest. Rate was 4% for other certificates of indebtedness and Liberty Bonds.
**Eligible commercial paper only.
xCertificates of indebtedness only.
Reference to text, page 7.
2
d
O
IS
H
FEDERAL RESERVE BANK OF NEW YORK
57
Exhibit B
CAPITAL ACCOUNT RECONCILIATION
January 1st to December 31st, 1919
Capital paid in Jan. 1, 1919
$20,820,100
Sundry Increase:
Due to increase of capital and surplus of member banks.... $1,591,050
Due to organization of new national banks
91,050
Due to admission of State Banks and Trust Companies
537,650
$2,219,750
Sundry Decrease:
Due to decrease in capital and surplus of member banks
Due to banks liquidated
$23,039,850
$649,100
$649,100
Paid in capital December 31, 1919
Reference to text, page 12.
$22,390,750
58
FIFTH ANNUAL REPORT
Chart No. 1
CLAS5IFICAT10K OF RESOURCES, FEDERAL RESERVE BANK OF N.Y.
DECEMBER 31,
OTHER RESOURCES
UMeOU.SC.TED ITEMS
AHD OTHER DEDUCTIONS
niOM&RoSS DEP0SIT5
GOVERNMENT
SECURITIES
ACCEPTANCES
OTHER DISCOUNTS
BISCOUKTS SECURED
»Y UBERTY BONDS, Vic
TORY N O T E * AND CERTIFI
CATES OF INDEBTEDNESS
/ • C A S H RESERVES
Reference to text, page 11.
FEDERAL RESERVE BANK OF NEW YORK
Chart No. 2
CLASSIFICATION OF LIABILITIES, FEDERAL RESERVE BANK OF NEW YORK,
DECEMBER 31,
«|
lOTHER LIABILITIES
ThlilsuRPLUS
RESERVE
NOTES
imam
DEFERRED AVAILABILITY ITEMS
3BflOTHER BEPOSITS
MEMBER BANKS1
RESERVE DEPOSITS
H
D
FEDERAL RESERVE
NOTES IN CIRCULATION
1919
ISIS
1917 lilt.
Reference to text, page 12.
MS
59
FIFTH ANNUAL REPORT
60
Chart No. 3
EARNINGS AND EXPENSES,
FEDERAL RESERVE BANK OF NEW YORK
MtUI0NS
MLb
ARS
EARNINGS
EXPENSES
lilt
1118
lt)7
Wife
Reference to text, page 13.
FEDERAL RESERVE BANK OF NEW YORK
61
Chart No. 4
FEDERALRESERVEBANKQF NEtVWRK
MOVEMENT OF EARNING ASSETS
S
DURING CALENDAR YEAR 1919.
Jo
UP!IT ED STATES SECURITIES.
ACCE>
fOO
T.
N
80
*
».
CO
80
60
60
40
20
0
40
20
0
PERCmTAOE OF WAR PAPER TO TOTAL DISCOUNTS.
TOTAL BILLS DISCOUNTED, "Ir-AMP WAR PAPER;W>.
1200
TOTAL EARtiIH6 ASSETS.
Reference to text, page 15.
Exhibit C
EARNING ASSETS, 1919
Classification of Investments of the Federal Reserve Bank of New York
(In Thousands of Dollars)
Discounted Paper
Secured by U. S.
War Obligations
January
3
10
17
24
31
February 7
14
20
28
March
7
14
21
28
April
4
11
18
25
May
2
9
16
23
29
June
6
13
20
27
691,786
644,980
569,446
663,904
591,242
639,721
731,071
707,364
741,979
775,574
761,365
676,608
661,987
628,697
692,682
671,695
685,022
678,623
741,711
792,953
708,974
703,252
634,661
630,112
584,513
567,632
2
Other
Discounted
Paper
4
1+2
5
6
7
Bills Bought Total Bills
Per Cent.
in
Discounted United States
1^-3
Open Market and Bought Securities
94.0
736,093
44,307
94.3
684,239
39,259
94.4
602,981
33,535
93.4
710,557
46,653
87.5
633,761
42,519
92.9
688,947
49,226
93.4
782,520
51,449
93.8
754,281
46,917
94.3
787,038
45,059
96.4
804,731
29,157
96.3
790,599
29,234
95.5
708,660
32,052
95.7
691,487
29,500
96.1
654,269
25,572
95.6
724,189
31,507
95.9
700,439
28,744
96.6
709,067
24,045
96.8
700,651
22,028
97.4
761,885
20,174
96.0
825,571
32,618
96.8
732,396
23,422
96.3
729,929
26,677
94.2
673,610
38,949
95.4
660,756
30,644
93.6
624,295
39,782
91.4
53,485
621,117
Reference to text, page 15.
76,294
79,628
84,148
93,385
83,727
64,524
54,927
41,399
43,325
40,088
16,897
27,158
41,329
55,612
57,017
54,730
46,903
47,311
43,737
42,691
44,424
44,853
51,779
71,992
80,948
100,822
812,387
763,867
687,129
803,942
717,488
753,471
837,447
795,680
830,363
844,819
807,496
735,818
732,816
709,881
781,206
755,169
755,970
747,962
805,622
868,262
776,820
774,782
725,389
732,748
705,243
721,939
43,241
76,136
169,139
47,852
157,247
47,896
49,426
54,119
60,138
61,096
64,852
65,826
65,394
66,179
70,850
70,827
70,126
70,658
76,026
76,713
69,639
69,834
67,492
67,628
64,818
65,253
8
Total
Earning
Assets
855,628
840,003
856,268
851,794
874,735
801,367
886,873
849,799
890,501
905,915
872,348
801,644
798,210
776,060
852,056
825,996
826,096
818,620
881,648
944,975
846,459
844,616
792,881
800,376
770,061
787,192
H
ffl
2
d
>
t-1
o
!33
H
Exhibit C—Continued
EARNING ASSETS, 1919
Classification of Investments of the Federal Reserve Bank of New York
(In Thousands of Dollars)
4
July
3
11
18
25
August
1
8
15
22
29
September 5
12
19
26
October
3
10
17
24
31
November 7
14
21
28
December 5
12
19
26
Discounted Paper
Secured by U.S.
War Obligations
Other
Discounted
Paper
674,449
742,901
667,802
649,147
644,096
641,566
615,433
619,361
656,305
672,070
611,442
483,053
617,837
674,010
697,763
698,653
675,336
702,142
795,212
721,344
701,956
753,834
667,512
654,401
515,035
584,588
65,674
62,342
61,775
68,746
58,120
53,625
49,853
46,978
43,891
52,791
49,692
45,539
47,707
72,578
104,877
116,668
105,083
130,880
109,139
98,759
88,855
107,068
119,342
144,924
143,537
203,606
Per Cent.
1 -+• 3
740,123
805,243
729,577
717,893
702,216
695,191
665,286
666,339
700,196
724,861
661,134
528,592
665,544
746,588
802,640
815,321
780,419
833,022
904,351
820,103
790,811
860,902
786,854
799,325
658,572
788,194
91.1
92.3
91.5
90.4
91.7
92.3
92.
92.
93.
92.
92.
91.4
92.8
90
86
85
86
84
87
87
72.7
81.9
78.2
74.2
Reference to text, page 15.
5
6
7
Bills Bought Total Bills
in
Discounted United States
Open Market and Bought Securities
113,047
119,363
91,563
91,497
98,002
106,980
111,654
105,843
94,288
71,177
70,955
73,521
76,401
87,682
80,400
85,315
97,925
85,373
54,323
77,896
86,379
97,021
131,865
147,030
179,382
191,312
853,170
924,606
821,140
809,390
800,218
802,171
776,940
772,182
794,484
796.038
732,089
602,113
741,945
834,270
883,040
900,636
878,344
918,395
958,674
897,999
877,190
957,923
918,719
946,355
837,954
979,506
58,684
60,371
59,086
60,309
62,887
64,498
77,951
66,477
67,811
68,640
194,059
32,093
64,816
70,778
71,078
73,772
71,780
76,000
76,015
76,519
76,871
78,991
76,714
69,461
98,800
68,651.
8
Total
Earning
Assets
911,854
984,977
880,226
869,699
863,105
866,669
854,891
838,659
862,295
864,678
826,148
734,206
806,761
905,048
954,118
974,408
953,124
994,395
1,034,689
974,518
954,061
1,036,914
995,433
1,015,816
936,751
1,048,160
w
FIFTH ANNUAL REPORT
64
Exhibit D
DISCOUNTS AND ADVANCES
Distribution by Months, 1918 and 1919
1918
1919
Number
of
Items
January. . .
February..
March
April
May
June
July
August.. .
September
October . .
November
December
Total.
Number
of
Items
Amount
Amount
9,229
7,906
6,050
7,314
8,184
9,645
11,759
9,329
11,219
15,601
13,650
17,835
$3,468,059,283.23
2,667,770,966.68
2,631,731,389.65
2,678,055,774.51
4,067,069,831.02
3,102,797,327.60
3,989,474,706.53
3,528,702,367.80
3,495,701,094.17
4,472,425,043.59
4,466,207,075.38
3,881,496,273.71
5,552
7,441
7,882
6,446
10,802
11,653
14,323
15,016
11,993
13,498
15,457
8,975
$299,141,079.59
267,801,380.25
321,342,092.09
1,460,681,317.41
2,181,143,351.44
2,290,684,904.35
1,935,041,787.56
2,306,086,869.85
2,893,616,075.93
3,713,305,674.14
2,948,291,085.09
3,918,402,840.07
127,721
$42,449,491,133.87
129,038
$24,535,538,457.77
Amounts held December 31, 1919
Discounts or
Advances
based on
United States
Securities
Discounts or
Advances
based on
Commercial
Paper
Bankers
Acceptances
Total
Within 15 days.. $448,425,681.35 $174,245,634.07
42,463,152.16
16—30 days
14,311,968.18
54,483,968.71
31—60 days
19,833,814.07
16,717,040.23
61—90 days
20,308,584.97
Over 90 days. ,
13,444.50
(Agricultural)
$39,357,212.10 $662,028,527.52
35,188,184.76
91,963,305.10
61,761,626.22 136,079,409.00
66,595,586.46 103,621,211.66
13,444.50
Total, Dec. 31,
562,089,842.45
1919
228,713,445.79
202,902,609.54
Total, Dec. 31,
1918
$652,567,674.72
$44,773,780.97
$77,576,632.94 $774,918,088.63
993,705,897.78
Total, Dec. 31,
1917
$138,594,941.91 $111,714,945.05 $148,770,185.44 $399,080,072.40
Reference to text, page 16.
FEDERAL RESERVE BANK OF NEW YORK
65
Exhibit E
PURCHASES FROM THE TREASURY
Special Certificates of Indebtedness Bought in 1919
Amount
Date
1919
January
2
10
11
13
17
18
20
31
February 1
3
4,
5
June
30
July
1
2.
15
August
13.
14
15
September 10
11.
12.
15.
16.
17.
18.
19.
20.
December 15.
16.
17.
18.
19.
20.
22.
$118,000,000
30,000,000
40,000,000
45,000,000
123,000,000
115,000,000
114,000,000
110,000,000
116,000,000
111,000,000
38,000,000
22,000,000
60,000,000
55,000,000
23,000,000
80,000,000
12,000,000
18,000,000
15,000,000
55,000,000
23,000,000
28,500,000
260,000,000
145,000,000
126,000,000
77,000,000
69,000,000
41,000,000
127,000,000
135,000,000
107,000,000
97,000,000
30,000,000
25,000,000
15,000,000
Reference to text, page 16.
Days
ON
Exhibit F
RESERVE POSITION, 1919
Movement of Gold and Cash Reserves, Federal Reserve Note and Net Deposit Liabilities, etc.
(In Thousands of Dollars)
January
3.
10.
17.
21.
31.
February 7.
14.
20.
28.
March
7.
14.
21.
28.
April
4.
11.
18.
25.
May
2.
9.
16.
23.
29.
6.
June
13.
20.
27.
Gold
Reserves
Total Cash
Reserves
F. R. Notes
in Actual
Circulation
Net
Deposits
(3 + 4)
*Reserve
Percentage
686,208
617,160
588,365
592,552
568,367
625,547
568,670
588,156
588,288
596,479
649,122
728,407
735,392
779,865
697,747
734,509
747,072
756,684
700,700
649,596
744,924
751,488
766,149
737,357
771,515
782,982
734,896
670,308
610,515
614,321
621,297
677,213
620,327
610,463
639,268
647,494
701,213
780,836
788,481
832,649
751,406
787,011
801,611
808,905
752,070
702,275
796,636
802,172
818,039
789,165
823,384
8.54,523
724,932
691,455
665,688
650,587
617,913
650,046
664,613
666,858
677,619
689,212
710,002
715,569
723,160
736,433
738,128
738,169
738,812
741,385
751,273
742,067
735,462
742,390
736,674
736,288
735,226
737,437
802,225
753,602
765,566
777,706
772,464
751,587
765,496
745,635
776,240
787,777
786,270
789,168
780,338
793,240
786,894
796,002
808,476
805,298
800,989
822,557
825,936
822,577
792,185
770,263
774,416
800,002
1,527,157
1,445,057
1,431,254
1,428,293
1,420,377
1,401,633
1,430,109
1,412,493
1,453,859
1,476,989
1,496,272
1,504,737
1,503,498
1,529,673
1,525,022
1,534,171
1,547,288
1,546,683
1,552,262
1,564,624
1,561,398
1,564,967
1,528,859
1,506,551
1,509,642
1,537,439
48.1
46.4
44.8
45.1
43.7
48.3
43.4
45.3
44.0
43.8
46.9
51.9
52.4
54.4
49.3
51.3
51.8
52.3
48.4
44.9
51.0
51.3
53.5
52.4
54.5
54.3
* Ratio of Cash Reserves to Net Deposit and Federal Reserve Note Liabilities Combined
T,
*r
IT
X
>
d
—
K
ft
o
H
Exhibit F—Continued
RESERVE POSITION, 1919
Movement of Gold and Cash Reserves, Federal Reserve Note and Net Deposit Liabilities, etc.
(In Thousands of Dollars)
Gold
Reserves
July
3.
11.
18.
25.
1.
8.
15.
22
29.
656,095
615,349
614,174
642,194
August
696,744
645,930
582,503
557,162
527,446
September
562,836
12.
592,478
19.
622,886
26.
640,130
October
3.
633,955
10.
556,746
17.
552,497
24.
613,344
31.
575,979
November 7.
568,105
14.
615,815
21.
632,927
28.
610,953
December 5.
590,905
12.
577,407
19.
608,107
26.
570,438
* Ratio of Cash Reserves to Net Deposit and Federal
Total Cash
Reserves
F. R. Notes
in Actual
Circulation
762,915
706,190
751,780
667,228
742,980
662,674
739,165
689,885
745,918
745,301
745,723
693,519
748,166
631,071
749,975
606, ?70
752,283
577,759
758,794
614,413
752,893
643,875
747,239
674,216
753,135
690,902
761,705
686,215
759,830
610,291
758,191
605,871
750,809
663,929
750,715
625,606
763,700
618,135
755,745
665,565
758,797
683,192
767,398
660,539
774,971
641,012
778,170
626,910
806,615
654,376
824,944
616,040
Reserve Note Liabilities Combined
Net
Deposits
(3 + 4)
* Reserve
Percentage
769,602
814,052
713,164
730,257
770,844
807,338
643,504
598,747
590,729
620,946
615,945
558,271
636,108
720,991
694,009
714,130
754,133
754,631
772,241
765,963
757,926
808,095
738,430
740,880
660,213
714,874
1,532,517
1,565,832
1,456,144
1,469,422
1,516,762
1,553,061
1,391,670
1,348,722
1,343,012
1,379,740
1,368,838
1,305,510
1,389,243
1,482,696
1,453,839
1,472,321
1,504,942
1,505,346
1,535,941
1,521,708
1,516,723
1,575,493
1,513,401
1,519,050
1,466,828
1,539,818
46.1
42.6
45.5
46.9
49.1
44.7
45.3
45.0
43.0
44.5
47.0
51.6
49.7
46.3
42.0
41.2
44.1
41.6
40.2
43.7
45.0
41.9
42.4
41.3
44.6
40.0
Reference to text, page 17.
5
H
ON
FIFTH ANNUAL REPORT
68
Chart No. 5
f
FEDERALRESERYEBANKOFNEWWRK
NET DEPOSIT LIABILITY.
F.R. NOTE CIRCULATION.
CASHRESERVES, AKD RESERVE RATIO. 1919.
i
70
60
SO
40
30
20
10
0
7V
60
J
V
SO
-A
40
30
20
!O
O
RE5ERVE RATIO, (PERCENTA6£0FC*U
F.R. HOTS CIRCULATION.
DEPOSITANDFRMOTELIABILITIESsL", A/YP TOTAL RESERVES, "C\
JAN. FEB. MCH. APRL MAY JUKE JULY AUG. SEPT. OCT. HOY. DEC.
Reference to text, page 17.
FEDERAL RESERVE BANK OF NEW YORK
69
Exhibit G
GOLD RESERVES
Weekly Movement in 1919
(Amounts in Thousands of Dolilars)
Date
January
Gold
Coin and
Certificates
3 . ...... .... 257,085
10 . .. . ...... . 258,942
17 . ... . ... . .. 260,574
24 . ... .. .. .. . 260,554
31. . . . . ...... 259,612
February 7 ........ ... 260,597
14 .... . . . .. . . 261,690
20 ..... . .. . . 260,805
28 .... . ...... 260,524
March
7 .. ... .. ... . 260,434
14 . . ..... .. .. 245,713
21. .. . . . .. .. . 244,721
28 . . .. ...... . 2'19,978
April
4 .. .. . .. .. -. 248,989
ll .... ... ... . 247,798
18 .. ....... . . 255,616
25 . .. . .... . .. 256,236
May
2 ... .. . .. .. . 256,021
9 ........... 255,610
16 ... . .. . .... 254,301
23 ..... .. . .. . 253,779
29 ..... ..... . 252,840
June
6 . . ...... . .. 263,578
13 . ...... . ... 260,047
20 ...... .. .. . 228,778
27 .... ... .. .. 210,322
July
3 ..... . . .. .. 187,413
ll ........... 176,288
18 .. .... .. .. . 172,868
25 ..... .. . . .. 168,481
August
1. .. . .... . .. 160,070
8 . ... ....... 158,539
15 .... . .... . . 153,594
22 ..... . . . . . . 161,390
29 .... ....... 156,435
September 5 .... ....... 149,830
12 . .. .... . . . . 148,884
19 ... .. ...... 139,243
26 ........... 157,733
October
3 . . . .. . .... . 153,957
10 .. . . ... .. .. 150,542
17 .. .. ....... 160,809
24 . . . . . ... . .. 155,967
31. ... . . ..... 156,700
November 7 ...... . .... 149,896
14 .. ....... .. 151,835
21. .. . .. .. .. . 146,923
28 ... ... .. .. . 137,374
December 5 . .. .... . ... 151,201
12 ... ... . .. . . 155,208
19 ... .. .... .. 156,249
26 ....... . . . . 147,197
Gold
Settlement
Fund
127,829
57,675
28,870
34,008
20,765
78,818
21,300
42,547
43,870
53,226
106,615
187,527
190,414
224,280
145,010
176,507
189, 501
199,568
130,017
80,956
178,524
186,786
192,474
168,200
225,032
255,520
153,304
124,343
128,232
160,932
224,828
177,225
ll9,693
87,585
64,352
96,347
128,740
152,696
139,419
127,380
56,301
43,171
100,792
64,813
61,303
101,143
125,038
ll5,902
74,561
55,486
87,692
41,560
Gold with Gold
Gold
Total
Federal Redemp- with
Gold
Reserve
tion
Foreign
Agent
Fund Agencies Reserve
274,380
273,532
271,910
270,979
260,979
259,121
258,669
257,793
257,256
256,181
269,783
269,230
268,301
281,596
279,939
277,386
276,335
276,095
290,073
289,339
287,679
286,920
285,268
284,281
292,876
292,311
290,739
289,889
288,358
287,952
287,017
285,578
284,387
283,279
281,659
291,659
289,854
289,256
288,849
287,654
285,358
284,406
283,000
281,912
285,365
284,417
283,780
282,877
291,356
290,070
288,751
307,385
Reference to text, page 17"
24,903
25,000
25,000
25,000
25,000
25,000
25,000
25,000
24,627
2-t,627
25,000
24,918
24,,688
25,000
25,000
25,000
25,000
25,000
25,000
25,000
24,942
24,942
24,829
24,829
24,829
24,829
24,639
24,829
24,,716
24,829
2't,829
24,588
24,829
24,908
25,000
25,000
25,000
25,000
25,000
25,000
24,872
24,872
24,780
24,872
24,872
24,773
25,000
25,000
25,000
24,930
24,873
25,000
2,Oll
2,Oll
2,Oll
2,Oll
2,Oll
2,Oll
2,01l
2,01l
2,Oll
2,Oll
2,Oll
2,Oll
2,Oll
. .......
.. . . . . . .
, .......
· . . . . .. .
· . . . . .. .
.. . . ....
.
... - . . .
. .. ...
'
·
. . ... .
... ......
.......I
. . .. . ...
· . . . ... .
...... .
. .. . ...
· . . . .. . .
. .......
.
. ...
. .. . ...
'"
.
. . ......
. . .. . ..
. . .... .
. . . . ....
. . . . . . ..
16,691
29,129
39,964
39,673
39,239
48,805
47,682
46,669
53,647
52,186
49,800
4·8,787
51,713
50,542
49,296
686,208
617,160
588,365
592,552
568,367
625,547
568,670
588,156
588,288
596,479
649,122
728,407
735,392
779,865
697,747
734,509
747,072
756,684
700,700
649,596
744,924
751,488
766,149
737,357
771,515
782,982
656,095
615,349
614,174
642,194
696,744
645,930
582,503
557,162
527,446
562,836
592,478
622,886
640,130
633,955
556,746
552,497
613,344
575,979
568,105
615,815
632,927
610,953
590,905
577,407
608,107
570,438
Exhibit H
OPEN MARKET ACCEPTANCE PURCHASES
Classification of Bills Bought for the Account of the Federal Reserve Bank of New York
Bankers
Acceptances
Import & Export
January
February
March
April
May
June
July
August
September....
October
November....
December....
Total 1919
Bankers
Domestic
Acceptances
Indorsed Trade
Bills of
Foreign Origin
Bills Drawn
to Furnish
Dollar Exchange
Domestic Trade
Acceptances
Total
$45,200,347.40
32,496,978.94
35,769,492.56
44,474,142.21
44,107,501.81
112,618,067.78
104,960,449.46
55,751,008.53
52,125,315.68
115,621,444.67
123,819,277.63
169,527,805.65
$26,777,675.79
21,938,985.49
14,501,220.02
13,818,620.43
14,795,169.16
23,991,087.64
23,022,659.28
8,617,804.47
11,582,896.27
27,409,633,44
25,627,552.95
35,473,532.15
$1,489,745.23
810,659.00
2,778,348.64
2,832,999.03
1,268,962.17
570,123.26
232,944.83
287,441.61
577,820.66
1,254,256.65
1,592,019.82
1,683,609.03
$1,215,000.00
662,286.95
201,133.30
406,114.33
550,000.00
7,556.85
566,327.46
188,750.00
124,053.41
221,636.70
1,327,500.00
1,993,251.72
268,053.03
336,611.38
65,471.15
50,000.00
553,494.37
242,682.52
1,594,621.29
$75,582,936.95
56,351,763.56
53,250,194.52
61,605,656.25
60,721,633.14
137,454,888.56
129,118,992.41
64,910,475.76
64,460,086.02
145.060,465.83
152,609,062.92
210,272,819.84
$936,471,832.32
$247,556,837.09
$15,378,959.93
$7,463,610.72
$4,527,735.70
$1,211,398,975.76
Reference to text, page 18.
$900,168.53
442,853.18
73,780.25
H
3
>
f
M
O
H
Exhibit H—Continued
OPEN MARKET ACCEPTANCE PURCHASES
Classification of Bills Bought for the Account of Other Federal Reserve Banks
Bankers
Acceptances
Import & Export
Bankers
Domestic
Acceptances
January...
February..
March
April
May
June
July
August.. ..
September.
October...
November.
December.
$29,481,920.77
19,002,355.69
25,242,605.57
22,834,598.46
27,113,076.64
68,510,348.19
60,265,298.80
40,725,358.59
65,006,689.06
78,315,068.70
61,867,259.10
84,881,710.35
$16,650,650.68
12,439,260.70
9,517,366.79
11,132,216.85
6,468,597.73
13,330,196.07
13,435,862.03
5,084,880.22
10,571,207.31
20,342,383.50
17,238,635.44
16,387,688.25
Total 1919
$583,246,289.92
$152,598,945.57
Indorsed Trade
Bills of
Foreign Origin
Bills Drawn
to Furnish
Dollar Exchange
$100,686.70
$383,770.00
230,000.00
200,000.00
184,103.44
375,156.54
25,000.00
608,490.00
60,000.00
275,000.00
100,000.00
188,415.15
187,000.00
311,150.51
425,000.00
$46,516,341.45
31,772,303.09
34,959,972.36
33,966,815.31
34,190,164.37
81,900,544.26
73,976,160.83
46,094,342.25
76,141,468.06
98,869,452.20
79,417,045.05
101,694,398.60
$2,968,825.66
$739,499,007.83
$684,946.68
Reference to text, page 18.
Domestic Trade
Acceptances
Total
>
O
W
3
Exhibit H—Continued
OPEN MARKET ACCEPTANCE PURCHASES
Purchased Bills Sold to Other Federal Reserve Banks
(000 Omitted)
Feb.
Jan.
Boston
$
$
April
Mar.
$
$
June
May
$
$
$
July
Sept.
Aug.
$
$
Oct.
$
Nov.
$
Total
Dec.
$
$
i
H
Philadelphia...
Cleveland
5,088
10,012
10,100
10,043
15,022
50,265,000
20,032
25,002
65,113,000
5,014
10,056
15,170,000
Richmond
Atlanta.
20,079
Chicago
St. Louis.
Minneapolis...
5,053
10,038
19,282,000
4,191
10,013
Kansas City...
15,010
Dallas
17,729
San Francisco.
Total
22,921
$10,141 $37,867 $24,270 $22,921
8,266
18,508
27,043
10,028
7,088
10,005
35,028,000
5,012
5,012,000
11,386
$8,266 $18,508 $37,055 $20,041 $22,098 $46,475 $65,097
Reference to text, page 18.
122,969,000
$312,839,000
d
O
S3
H
FEDERAL RESERVE BANK OF NEW YORK
73
Exhibit I
ACCEPTANCES REDISCOUNTED, 1919
Distribution by Months and Class of Bills
Bankers
Acceptances
January
February
March
April
May
June
July
August
September
October
November
December
Total 1919...
Trade Acceptances
Domestic
Foreign
Total
$1,109,278.64
267,839.44
123,542.91
143,933.87
747,165.83
315,053.84
114,112.44
98,530.32
261,992.05
481,369.44
721,162.62
57,387,275.25
$3,155,942.22
3,061,735.32
1,606,768.58
1,481,224.91
2,074,265.58
2,263,533.82
3,152,413.32
2,381,047.98
2,380,002.86
4,842,518.73
7,054,029.16
7,743,542.34
$33,313.41
845,553.33
1,990,257.86
2,463,006.72
1,692,141.55
933,052.59
949,540.00
366,332.84
1,187,078.75
2,377,501.37
2,704,863.15
393,423.63
$4,298,534.27
4,175,128.09
3,720,569.35
4,088,165.50
4,513,572.96
3,511,640.25
4,216,065.76
2,845,911.14
3,829,073.66
7,701,389.54
10,480,054.93
65,524,241.22
$61,771,256.65
$41,197,024.82
$15,936,065.20
$118,901,346.67
$28,359,958.12
$42,316,953.49
Total 1918 ..
Reference to text, page 18.
74
FIFTH ANNUAL REPORT
Exhibit J
FEDERAL RESERVE NOTES
Movement between Federal Reserve Bank of New York and other
Federal Reserve Banks, 1919
From Federal Reserve
Bank of
Atlanta
Boston
Chicago
Cleveland
Dallas
Kansas City
Minneapolis
Philadelphia
Richmond
St. Louis
San Francisco
Total
Notes of
Federal
Reserve
Bank of
New York
Received
To Federal Reserve Bank
of
$12,802,160
59,860,250
28,768,500
22,815,150
3,178,600
4,883,200
3,414,000
59,310,500
22,394,000
9,962,820
8,018,610
Atlanta
Boston
Chicago
Cleveland
Dallas
Kansas City
Minneapolis
Philadelphia
Richmond
St. Louis
San Francisco
$235,407,790
Total
Reference to text, page 22.
Their
Notes
Shipped
$14,603,700
33,280,800
29,202,250
24,882,550
2,522,950
5,489,350
4,091,350
54,441,950
24,859,000
5,983,050
11,028,250
$210,385,200
Exhibit K
FEDERAL RESERVE NOTES
Summary of Issues, Amount Outstanding, etc.
Total issued to the bank:
1914, 1915, 1916, 1917, 1918
1919
Less notes unfit for circulation retired 1914, 1915, 1916,
1917, 1918
$371,897,165
Less notes unfit for circulation retired 1919
632,419,880
Amount outstanding December 31, 1919
As follows:
In actual circulation
Held by Federal Reserve Bank December 31, 1919
On December 31,1919, the Federal Reserve Agent held against Federal
Reserve notes:
Gold certificates
Eligible paper
$1,190,913,000.00
753,120,000.00
$1,944,033,000.00
*l,004,317,045.00
$939,715,955.00
$807,615,970.00
132,099,985.00
$939,715,955.00
$306,756,215.00
991,544,190.09
Total
$1,298,300,405.09
*Includes $59,033,000 of notes fit for circulation returned by the bank and by the
United States Treasurer.
Reference to text, page 23.
Exhibit L
a
w
CHECK COLLECTIONS
Classification of Checks Handled by the Federal Reserve Bank of New York in 1919
On Treasurer
of United States
January
February
March
April
M ay
July .
August
September
October
November
December
Total, 1919
On Other
Federal Reserve Banks
On Banks in
Other Federal
Reserve Districts
On New York
Clearing House
On All Other
Banks in
Second District
TOTAL
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
1,356,301
1,088,397
1,260,247
1,500,924
1,228,337
1,006,229
919,022
881,212
891,060
1,016,598
905,473
913,338
$528,951,067
316,793,345
458,692,797
621,310,221
637,897,426
608,533,953
610,339,060
695,810,394
673,015,691
713,231,462
402,663,312
537,667,018
222
200
815
262
300
325
296
257
200
199
139
142
$ 406,686
801,510
1,654,710
2,037,203
1,408,573
1,751,497
1,268,608
881,025
1,446,052
2,149,986
1,408,190
1,922,322
834,729
785,376
846,205
764,615
800,668
748,907
749,047
1,005,871
803,973
937,966
848,711
967,073
$387,849,798
336,919,356
375,434,811
431,240,026
450,766,513
416,837.898
478,194,810
479,470,247
523,207,673
597,208,546
540,197,158
577,875,056
427,711
371,069
723,490
515,448
507,209
608,071
617,811
611,105
748,241
718,549
672,661
866,668
$2,249,118,603
1,360,367,567
1,702,166,132
1,606,675,069
1,795,353,544
1,981,917,447
1,895,491,056
1,666,514,545
2,309,755,144
2,121,490,597
2,238,872,345
2,632,712,740
3,812,305
3,133,031
3,289,742
3,208,601
3,228,509
3 118 980
3,308,735
3,381,362
3,101,215
3,506,139
3,274,157
3,795,822
$1,245,360,125
1,371,609,304
1,449,171,336
1,419,194,718
1,510,624,803
1,855,164,703
1,651,854,488
1,310,640,935
1,777,268,863
1,855,225,566
1,793,432,831
2,002,461,418
6,431,268
5,378,073
6,119,999
5,989,850
5,765,023
5,482,512
5,594,911
5,879,807
5,544,689
6,179,451
5,701,141
6,543,043
12,967,138 $6,805,805,746
2,857
'Handled by Buffalo Branch.
30
Amount
$4,411,680,279
3,386,49 l,O8'2
3,987,119,786
4,080,457.237
4,406,050,8f.!)
4,864,205,558
4,637,148,022
4,153,317,146
5,285,593,423
5,289,306,157
4,976,573,830
5,752,638,554
$17,136,362 10,093,141 $5,595,201,892 7,388,033 $23,570,434,789 40,158,598 $19,242,009,150 70,009.767 $55,230,587,939
•3,857,007 *1,327,2915,539
$56,557,884,478
74,466,774
Reference to text, page 25
76
FIFTH ANNUAL REPORT
Chart No. 6
AVERAOE NUMBER OF CHECKS ' HANDLED DAILY
FEDERAL RESERVE BANK OF-N£W YORK
1915- WW
rw» J|J|A|S|O|N|D J|F|M|A|M|J|J|A|S|O|N|D J]F|M|A]M|J|J|A|S[O|N|DJ|F|M|A,[M|J|J|A|S]O|N|D
.ITEMS ON NEW YORK CLEARING. HOUSE
.ITEM5 ON OTHER BANKS IN SECOND DISTRICT
• ITEMS ON TREASURER OF UNITED STATES
.ITEMS ON BANKS IN OFHEK HiUEKAL RtSEKVb
DISTRICT5
, TOTAL ITEMS
|N|D J|F|M|»|M|JIJIA|5|0|N|li J|F|M|A|M|JiJ|ft|5|0|N|C
Reference to text, page 25.
Exhibit M
GOLD SETTLEMENT FUND
Operations in 1919
>
Amounts received and paid by the New York Federal Reserve Bank in settlement of accounts due, were as follows:
From or to Federal Reserve Bank of
Atlanta
Boston
Chicago
Cleveland
Dallas
Kansas City
Minneapolis
Philadelphia
Richmond
St. Louis
San Francisco
Treasurer of the United States.
Federal Reserve Agent
Total.
Loss..
Received
$619, 953,388.76
4,285, 885,533.29
2,968 943,740.63
2,500, 886,760.69
500, 120,095.43
1,108. 219,274,86
652, 829,738.54
4,011. 664,502.18
1,808. 364,196.61
806. 177,518.58
1,377. 110,357.06
240. 000,000.00
Net Gain
Paid
$923,825 391.22
4,342,820 295.55
3,545,167 015.23
2,069,956 232.73
672,865, 227.70
971,530, 865.94
503,301, 228.18
3,726,706 006.14
1,887,104, 195.99
829,371, 921.82
1,351,527, 322.21
80,090 ooo!6o
85,000,
$273,872,002.46
56,934,762.26
576,223,274,60
$430,930,527.96
133,688,408.92
149,528,510.36
314,958,496.04
172,745,132.27
78,739.999.38
23,197,403.21
25,883,034,85
159,910,000.00
85,000,000.00
000.00
$20,940,155,106.63 $20,992,268,702.71
51,813,596.08
Reference to text, page 26.
Net Loss
,214,898,978.13
51,813,596.08
$1,266,712,574,21
td
78
FIFTH ANNUAL REPORT
Exhibit N
NATIONAL BANKS WITH FIDUCIARY POWERS
Listed according to States, including Authorizations of 1918
The Federal Reserve Board has authorized the National banks of this district listed
below to exercise one or more fiduciary powers as follows:
(1) Trustee
(2) Executor
(3) Administrator
(4) Registrar of Stocks and Bonds
(5) Guardian of Estates
(6) Assignee
(7) Receiver
(8) Committee of Estates of Lunatics
(9) Any other fiduciary capacity in which State banks, trust
companies or other corporations which come into competition with National banks are permitted to act under the laws
of the State in which the National bank is located.
The numerals opposite the name of each bank, which refer to the list given above,
indicate the power or powers it is authorized to exercise.
NEW YORK
PLACE
Albany
"
«
*Amsterdam
*Auburn
"
*Brooklyn
*
"
Buffalo
Canandaigua
*Canton
"
*Carthage
Catskill
Clayton
*Cooperstown
•
*Corning
*Cuba
Dunkirk
*
"
Edwards
Elmira
"
Far Rockaway
Geneva
Glens Falls
*Gloversville
*
"
*Goshen
Granville
"
*Hempstead
*Herkimer
*Hoosick Falls
*Hornell
*Hudson
"
*Ilion
*Ithaca
NAME OF BANK
First National Bank
National Commercial Bank
N. Y. State National Bank
First Nat'l Bank (Conditional)
Cayuga County National Bank
The National Bank of Auburn
First National Bank
Nassau National Bank
Mfrs. & Traders National Bank
Canandaigua National Bank
First National Bank
St. Lawrence Co. Nat'l Bank
Carthage National Bank
Catskill National Bank
National Exchange Bank
First National Bank
Second National Bank
First National Bank
Cuba National Bank
Lake Shore National Bank
Merchants National Bank
Edwards National Bank
Merchants National Bank
Second National Bank
Nat'l Bank of Far Rockaway
Geneva National Bank
Merchants National Bank
City National Bank
Fulton County Nat'l Bank
Nat'l Bank of Orange County
Farmers National Bank
Washington County Nat'l Bank
First National Bank
Herkimer National Bank
Peoples National Bank
Citizens National Bank
Farmers National Bank
First Nat'l Bank (Conditional)
Ilion National Bank
First National Bank
POWERS
GRANTED
4
1 to 8 inclusive
4
I t o 9 inclusive
1 to 8 inclusive
4
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
4
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
4
1 to 7 inclusive
1 to 8 inclusive
4
4
1 to 8 inclusive
1 to 8 inclusive
I t o 9 inclusive
1 to 9 inclusive
4
4
1 to 9 inclusive
I t o 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
I t o 9 inclusive
1 to 8 inclusive
I t o 8 inclusive
1 to 9 inclusive
FEDERAL RESERVE RANK OF NEW YORK
PLACE
Jamestown
* Kingston
*Little Falls
*Lockport
"
*Middletown
Mineola
Morristown
*Mount Vernon
*New York
"
*
"
*
"
"
*North Tonawanda
*Norwich
*
"
Nyack
*Ogdensburg
*Oneida
Oneonta
* "
Ovid
*Peekskill
*
"
Plattsburg
*
"
*Port Chester
*Port Jervis
*
"
*Poughkeepsie
*
"
Richfield Springs
Riverhead
Rochester
*Rome
Saratoga Springs
*Southampton
Stapleton
*Tarrytown
*Troy
Utica
* "
*Vernon
*Walton
*Watertown
Westfield
NAME OF BANK
"
Nat'l Chautauqua County Bank
Rondout National Bank
Little Falls National Bank
National Exchange Bank
Niagara Co. National Bank
Merchants National Bank
First National Bank
Frontier National Bank
First National Bank
American Exchange Nat'l Bank
Atlantic National Bank
Bank of New York, N. B. A
Bronx National Bank
Chase National Bank
Chatham & Phenix Nat'l Bank
Chemical National Bank
Citizens National Bank
Coal & Iron National Bank
First National Bank
Garfield National Bank
Gotham National Bank
Hanover National Bank
Harriman National Bank
Irving National Bank
Liberty National Bank
Lincoln National Bank
Mechanics & Metals Nat'l Bank
Merchants National Bank
National Bank of Commerce
National City Bank
National Park Bank
Seaboard National Bank
State National Bank
Chenango National Bank
National Bank of Norwich
Nyack National Bank
Nat'l Bank of Ogdensburg
Oneida Valley Nat'l Bank
Citizens National Bank
Wilber National Bank
First National Bank
Peekskill National Bank
Westchester Co. Nat'l Bank
City National Bank
Plattsburg National Bank
First National Bank
First National Bank
Nat'l Bank of Port Jervis
Fallkill National Bank
Farmers & Mfrs. Nat'l Bank
First National Bank
Suffolk County Nat'l Bank
Lincoln National Bank
Farmers National Bank
Saratoga National Bank
First National Bank
Richmond Borough Nat'l Bank
Tarrytown National Bank
Union National Bank
Utica City National Bank
Oneida National Bank
National Bank of Vernon
First National Bank
Jefferson County Nat'l Bank
Watertown National Bank
National Bank of Westfield
79
POWERS
GRANTED
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
4
4
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 9 inclusive
4
1 to 9 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
4
1 to 9 inclusive
1 to 8 inclusive
4
1,2,3,4,5,7,8,9
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 9 inclusive
1 to 8 inclusive
4
4
4
1 to 8 inclusive
4
1 to 8 inclusive
4
1,2,3,5,6,7,8,9
1 to 8 inclusive
1 to 8 inclusive
1 to 8 inclusive
1, 2, 3, 5, 6, 7
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
4
80
FIFTH ANNUAL REPORT
PLACE
NAME OP BANK
POWERS
GRANTED
NEW JERSEY
Asbury Park
Atlantic Highlands
*Belvidere
Bloomfield
*Boonton
Bound Brook
Cranbury
Dover
*Elizabeth
Frenchtown
Hoboken
*Jersey City
*Lambertville
*Long Branch
*Morristown
"
Newark
* "
* "
*New Brunswick
"
"
*Orange
* "
*Passaic
*Paterson
*
"
"
*Perth Amboy
Phillipsburg
Plainfield
*Red Bank
Rutherford
Somerville
*South River
Sussex
Merchants National Bank
Atlantic Highlands Nat'l Bank
Belvidere National Bank
Bloomfield National Bank
Boonton National Bank
First National Bank
First National Bank
National Union Bank
National State Bank
Union National Bank
First National Bank
First National Bank
Lambertville National Bank
Citizens National Bank
First National Bank
National Iron Bank
Merchants National Bank
National Newark & Essex Bkg. Co
National State Bank
North Ward National Bank
National Bank of New Jersey
Peoples National Bank
Orange National Bank
Second National Bank
Passaic National Bank
First National Bank
Paterson National Bank
Second National Bank
First National Bank
Phillipsburg National Bank
City National Bank
Second National Bank
Rutherford National Bank
Second National Bank
First National Bank
Farmers National Bank
1 to 8 inclusive
1, 2, 3
1 to 8 inclusive
1, 2, 3, 4
1 to 9 inclusive
1, 2, 3, 4
1, 2, 3, 4
1, 2, 3, 4
1 to 7 inclusive
1, 4
1 to 4 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1 to 8 inclusive
1, 2, 3, 4
1 to 8 inclusive
1 to 9 inclusive
1, 2, 3, 4
1 to 9 inclusive
1, 2, 3, 4,
1 to 8 inclusive
1 to 9 inclusive
1 to 9 inclusive
1, 2, 3, 4, 6, 7
1 to 8 inclusive
1 to 8 inclusive
1 to 9 inclusive
1 to 8 inclusive
1, 2, 3, 4
1 to 9 inclusive
1, 2, 3, 4
1, 2, 3, 4
1 to 9 inclusive
1, 2, 3, 4
CONNECTICUT
Bridgeport
*
*Danbury
*
"
Greenwich
Norwalk
*Ridgefield
South Norwalk
*Stamford
City National Bank
Connecticut National Bank
First Bridgeport National Bank
City National Bank
Danbury National Bank
Greenwich National Bank
National Bank of Norwalk
First National Bank
City National Bank
First Stamford National Bank
*Some or all of powers indicated were obtained in 1919.
Reference to text, page 30.
1 to 8 inclusive
1 to 9 inclusive
1 to 9 inclusive
1 to 9 inclusive
1 to 9 inclusive
1 to 8 inclusive
1, 2, 3, 4
1 to 9 inclusive
1, 2, 3, 4
1 to 9 inclusive
FEDERAL RESERVE BANK OF NEW YORK
81
Exhibit 0
ACCEPTORS TO 100 PER CENT.
List of Ranks Receiving Permission, 1915-1919
The following banks have received permission to accept drafts and bills of exchange
up to 100 per cent, of their capital and surplus:
Utica
"
NEW YORK
American Exchange National Bank
Atlantic National Bank
Bankers Trust Company
Bank of the Manhattan Company
Bank of New York
Central Union Trust Company
Chase National Bank
Chemical National Bank
Citizens National Bank
Columbia Trust Company
Corn Exchange Bank
Equitable Trust Company
Farmers Loan & Trust Company
*Fifth Avenue Bank
First National Bank
Franklin Trust Company
W. R. Grace & Co.'s Bank
Guaranty Trust Company
Harriman National Bank
Importers & Traders National Bank
Irving National Bank
Liberty National Bank
Mechanics & Metals National Bank
Mercantile Bank of the Americas
*Mercantile Trust Company
Merchants National Bank
National Bank of Commerce
National City Bank
National Park Bank
New Netherlands Bank
Seaboard National Bank
Second National Bank
U. S. Mortgage & Trust Company
First National Bank
*Utica Trust & Deposit Company
Newark
New Brunswick
Paterson
"
NEW JERSEY
*National Newark & Essex Banking Co.
National Bank of New Jersey
*Hamilton Trust Company
*Paterson National Bank
New York
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
Bridgeport
*Permission given in 1919.
CONNECTICUT
*City National Bank
Reference to text, page 30.
82
FIFTH ANNUAL REPORT
Exhibit P
PERSONNEL OF THE BANK
Distribution by Departments, etc., 1918-1919
Men
Officers
Planning Committee
Architectural
30
5
2
Total
Women Dec. 31,
1919
3
1
30
8
3
1918
23
2
ACCOUNTS FUNCTION
ACCOUNTING DEPARTMENT
Bookkeeping Division
Accounts with other F. R. Bks. Section
Reserve Deficiency Section
Reference Files Section
Planning Department
3
16
3
79
28
7
17
8
54
12
5
20
15
10
9
9
24
19
16
12
4
0
0
2
26
13
7
20
39
5
17
7
20
41
31
11
4
1
2
12
6
13
18
35
13
1
4
12
3
11
94
56
7
11
36
21
8
1
3
4
8
30
4
4
8
30
1
5
32
3
8
13
0
8
11
7
124
4
3
1
4
8
13
4
14
13
9
216
4
3
5
74
3
3
51
4
55
4
55
26
4
1
5
24
o
DISBURSING DEPARTMENT
Purchasing Division
Expense Division
Insurance Division
ADMINISTRATION FUNCTION
SERVICE DEPARTMENT
Employment Division
Addressograph Section
Correspondence Files Section
Secretaries and Stenographers Section
Post Office Section
Float Force Section
Telegraph Section
Telephone Section
Photostat Section
Pages and Office Boys Section
Protection Section
Porters Section
Time Clock and Locker Section
11
94
56
4
PERSONNEL DEPARTMENT
Training Division
Educational Division
Medical Division
Personnel Service Division
CASH AND CUSTODY FUNCTION
Authorities Division
Paying Division
Shipping Division
Codes and Tests Section
Wire Transfer Division
Incoming Registered Mail Section
Receiving Division
Money Division
Coin and Bullion Section
Fed. Res Bk. Reserve Position Section
4
6
2
2
92
1
3
7
2
9
CUSTODY DEPARTMENT
Custody Division
Vault Division
49
4
2
FEDERAL RESERVE BANK OF NEW YORK
Men Women
83
Total
Dec. 31, 1918
1919
COLLECTION FUNCTION
CHECK DEPARTMENT
Incoming Mail Division—Day
Incoming Mail Division—Night
Transit Division—Day
Transit Division—5-12
Transit Division—12-8
Redemption and Return Items Division
Adjustment Division
281
56
0
28
4
53
33
317
64
34
45
24
36
13
340
73
32
28
19
27
89
36
19
7
2
95
23
34
91
131
42
42
35
48
24
28
47
8
23
36
70
33
83
23
35
12
12
85
47
41
63
121
11
123
65
244
76
220
23
Government Securities Sales Department.
Liberty Loan Association Department....
Administration Division
72
55
31
96
74
24
168
129
55
300
447
61
INVESTMENT FUNCTION
Bill Department
Securities Department
14
30
7
18
21
48
36
5
10
106
43
33
36
8
34
17
20
10
COLLECTION DEPARTMENT
Government Check Division
City Collection Division
Country Collection Division
Coupon Collection Division
LOAN FUNCTION
LOAN DEPARTMENT
Credit Division
Loan and Discount Division
FOREIGN EXCHANGE FUNCTION
Foreign Department
FISCAL AGENCY FUNCTION
Certificates of Indebtedness Department..
Government Deposit Department
GOVERNMENT BOND DEPARTMENT
Bond Division
Coupon Paying Division
GOVERNMENT LOAN ORGANIZATION
LAW FUNCTION
Legal Department
FEDERAL RESERVE AGENT'S
FUNCTION
Member Bank Relations Department
Note Issues Department
Statistics Department
Bank Examination Department
Press and Circular Division
3
3
12
3
2
5
1
1
4
3
17
4
3
Auditing Department.
65
47
112
52
42
94
1,568
1,394
2,962
( lai)ital Issues
BuiTalo Branch
Total
Reference to text, page 36.
2
5
2,653
Exhibit Q
CERTIFICATES OF INDEBTEDNESS
Issues and Subscriptions, 1919
Series
5-C
5-D
5-E
5-F
5-G
5-H
5-J
5-K
T-2
T-3
T-4
T-5
T-6
T-7
T-8
T-9
T-10
TM-3
A 1920
B 1920
C 1920
D 1920
TJ 1920
Total
Date of Issue Maturity Date Rate
Jan.
Jan.
Jan.
Feb.
Feb.
Mar.
Apr.
May
Jan.
Mar.
June
June
July
July
July
Sept.
Sept.
Dec.
Aug.
Aug.
Sept.
Dec.
Dec.
2, 1919
16, 1919
30, 1919
13, 1919
27, 1919
13, 1919
10, 1919
1, 1919
16, 1919
15, 1919
3, 1919
3, 1919
1, 1919
1, 1919
15, 1919
15, 1919
15, 1919
1, 1919
1, 1919
15, 1919
2, 1919
1, 1919
15, 1919
June
June
July
July
July
Aug.
Sept.
Oct.
June
June
Sept.
Dec.
Sept,
Dec.
Mar.
Mar.
Sept.
Mar.
Jan.
Jan.
Feb.
Feb.
June
3, 1919
17, 1919
1, 1919
15, 1919
29, 1919
12, 1919
9, 1919
7, 1919
17, 1919
16, 1919
15, 1919
15, 1919
15, 1919
15, 1919
15, 1920
15, 1920
15, 1920
15, 1920
2, 1920
15, 1920
2, 1920
16, 1920
15, 1920
4K
4K
4K
4K
4K
4K
4K
4X
4K
4>|
4X
Total Sale
Sale in
Second District
$751,684,500
600,101,500
687,381,500
620,578,500
532,381,500
542,197,000
616,025,000
591,308,000
392,381,000
407,918,500
526,139,500
238,711,500
326,468,000
511,444,000
323,074,500
101,131,500
657,469,000
260,322,000
533,801,500
532,152,000
573,841,500
162,178,500
728,130,000
$300,977,500
203,609,500
265,814,500
217,497,500
174,501,500
183,111,500
275,355,000
212,301,000
165,622,000
227,964,000
212,337,000
78,557,500
129,254,000
212,504,000
116,450,500
25,582,500
412,319,000
90,410,000
192,326,000
201,904,500
252,679,000
43,165,000
281,882,500
$11,246,820,500
$4,506,155,500
Reference text, page 42.
Per Cent
Sale in
Second
District
to Total
Sale
.40
.34
.39
.35
. 33
.31
.43
.36
.42
.56
.40
.33
.40
. 47
.36
.25
.63
.35
.36
.38
.44
.27
.39
.40
Paid for
by Credit
$291,503,000
193,809,000
255,993,000
210,759,000
169,456,000
152,836,000
261,216,000
196,101,000
88,110,000
55,083,000
99,780,000
56,612,000
71,890,000
153,094,000
97,802,000
22,839,000
385,350,000
75,440,000
166,888,000
193,100,000
132,968,000
42,207,000
180,687,000
$3,556,526,000
Number of
Days Before
Final Withdrawal of
Deposits
26
30
33
39
48
55
44
40
54
54
45
43
16
30
31
85
85
32
41
36
36
35
34
h—I
H
O
H
FEDERAL RESERVE BANK OF NEW YORK
Exhibit R
85
CERTIFICATES OF INDEBTEDNESS
Amounts Held by Banks as Compared with Total Amount
Outstanding in Second District
Week Ended, 1919
January
— 3
10
17
24
31
February — 7
14
21
28
March
— 7
14
21
28
April
— 4
11
18
25
May
— 2
9
16
23
29
June
— 6
13
20
27
July
— 3
11
18
25
August
— 1
8
15
22
29
September— 5
12
19
26
October — 3
10
17
24
31
November— 7
14
21
28
December— 5
12
19
26
Amount
Outstanding
Amount Held
by 112
Reporting
Banks*
$1,468,000,000
1,464,000,000
1,672,000,000
1,671,000,000
1,743,000,000
1,743,000,000
1,962,000,000
1,962,000,000
2,135,000,000
2,135,000,000
2,281,000,000
2,112,000,000
2,067,000,000
2,055,000,000
2,322,000,000
2,315,000,000
2,314,000,000
2,513,000,000
2,411,000,000
2,409,000,000
2,011,000,000
2,008,000,000
1,816,000,000
1,757,000,000
1,320,000,000
1,251,000,000
1,356,000,000
1,337,000,000
1,338,000,000
1,337,000,000
1,506,000,000
1,686,000,000
1,574,000,000
1,573,000,000
1,573,000,000
1,698,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,549,000,000
1,654,000,000
1,561,000,000
1,441,000,000
1,407,000,000
$635,300,000
637,900,000
730,900,000
719,800,000
727,800,000
688,100,000
820,300,000
789,500,000
916,500,000
904,500,000
1,011,000,000
905,200,000
848,500,000
825,800,000
985,200,000
957,000,000
937,000,000
1,061,800,000
1,036,000,000
1,014,400,000
772,900,000
746,900,000
589,200,000
537,200,000
347,200,000
291,500,000
365,100,000
365,800,000
339,600,000
314,900,000
435,200,000
424,900,000
489,000,000
466,500,000
452,200,000
531,800,000
460,200,000
569,900,000
525,800,000
501,400,000
496,500,000
460,600,000
455,300,000
446,200,000
399,700,000
395,600,000
388,900,000
381,000,000
363,000,000
324,900,000
332,500,000
294,600,000
*These reporting banks represent approximately 77 per cent, of the total banking
resources of the Second Federal Reserve District.
Reference to text, page 43
Exhibit S
CO
ON
REDEMPTION OF CERTIFICATES OF INDEBTEDNESS, 1919
Series
Tax
Issues
L
R
TA
T
T-2
T-3
T-4
T-5
T-6
T-7
T-8
T-9
T-10
TM-3
Dates
Issue
Maturity
Jan.
Mar.
Aug.
Nov.
Jan.
Mar.
June
June
July
July
July
Sept.
Sept.
Dec.
2/18
15/18
20/18
7/18
16/19
15/19
3/19
3/19
1/19
1/19
15/19
15/19
15/19
1/19
June
June
July
Mar.
June
June
July
Dec.
Sept.
Dec.
Mar.
Mar.
Sept.
Mar.
25/18
25/18
15/19
15/19
17/19
16/19
15/19
15/19
15/19
15/19
15/20
15/20
15/20
15/20
Used in
Exchanges for
Other Issues Payment of
Taxes
$8,005,500
10,094,500
93,143,000
15,493,000
21,888,500
789,500
24,528,500
17,522,500
2,150,500
3,291,000
Bond
Payments
$4,026,000
50,753,500
3,745,500
51,457.500
61,052,000
36,775,500
2,435,000
10,611,500
Used to Pay
Withdrawals
of War Loan
Deposits
{!06,500
776,500
45,309,000
$242,215,500
Total
$5,000
1,000
17,676,500
342,853,000
164,749,000
227,088,500
215,764,500
80,919,500
133,650,000
252,725,500
2,150,500
3,291,000
45,309,000
$220,856,500
$1,583,000
$1,486,183,000
H
2
d
>
w
ha
P
Feb. 27/18 May 28/18
Total
4th Loan
$5,000
1,000
5,645,000
282,005,000
67,054,000
159,361,500
132,824,000
43,354,500
106,686,500
224,591,500
$1,021,528,000
Total Tax
Loan Series
3rd Loan
Cash
Redemption
4-A
4-B
4-C
4-D
4-E
4-F
4-G
June
July
July
Aug.
Sept.
Sept.
Oct.
25/18
9/18
23/18
6/18
3/18
17/18
1/18
Total
Oct.
Nov.
Nov.
Dec.
Jan.
Jan.
Jan.
24/18
7/18
21/18
5/18
2/19
16/19
30/19
$11,000
$11,000
$11,000
$11,000
$116,000
90,000
79,000
43,000
4,316,000
148,314,500
179,862,000
$1,969,500
6,350,500
$14,898,000
15,944,500
$116,000
90,000
79,000
43,000
4,316,000
165,182,000
202,157,000
$332,820,500
$8,320,000
$30,842,500
$371,983,000
o
Exhibit S—Continued
REDEMPTION OF CERTIFICATES OF INDEBTEDNESS, 1919
Series
5th Loan
5-A
5-B
5-C
5-D
5-E
5-F
5-G
5-II
5-J
5-K
Dates
Issue
Maturity
Dec.
Dec.
Jan.
Jan.
Jan.
Feb.
Feb.
Mar.
Apr.
May
5/18
19/18
2/19
16/19
30/19
13/19
27/19
13/19
10/19
1/19
May
May
June
June
July
July
July
Aug.
Sept.
Oct.
6/19
20/19
3/19
17/19
1/19
15/19
29/19
12/19
9/19
7/19
Used in
Exchanges for
Other Issues Payment of
Taxes
Bond
Payments
Used to Pay
Withdrawals
of War Loan
Deposits
Total
$219,645,500
203,486,500
304,256,500
203,216,500
268,627,500
220,239,500
179,929,500
183,986,500
283,335,500
219,708,000
$1,877,500
218,000
621,000
58,654,500
31,477,500
50,091,000
34,963,500
144,667,500
28,965,000
$931,000
74,969,500
157,699,500
87,652,000
76,637,000
71,502,500
43,648,500
19,138,000
16,919,000
18,377,000
$1,326,187,500
$380,677,500
$567,474,000
$12,092,500
$88,763,000
41,925,000
35,883,500
25,059,500
$4,058,500
9,390,000
1,370,000
$92,821,500
51,315,000
37,253,500
25,059,500
Total
$191,631,000
$14,818,500
$206,449,500
Tax and Loan
$2,872,177,500
$646,031,500
Total
Series of
1920 A-1920
B-1920
C-1920
D-1920
Grand total
Cash
Redemption
Aug.
Aug.
Sept.
Dec.
1/19
15/19
2/19
1/19
Jan. 2/20
Jan. 15/20
Feb. 2/20
Feb. 16/20
$185,820,500
128,517,000
146,339,000
112,463,500
128,026,000
116,238,500
85,552,000
129,116,000
121,749,000
172,366,000
$31,016,500
$220,856,500
Reference to text, page 43.
$598,316,500
2,480,000
5,310,000
1,021,000
635,000
769,000
$13,675,500
M
O
M
>
r
50
w
w
W
50
<
td
>
$2,286,431,500
$4,351,057,500
!
O
50
FIFTH ANNUAL REPORT
88
Exhibit T
VICTORY LOAN
Classification of Subscriptions by Amount
Amount of
Subscriptions
Class
$50
to $10,000
10,050 to 50,000
50,050 to 100,000
100,050 to 200,000
Over 200,000
Total
Number of
Subscribers
$487,007,000
157,153,200
110,284,550
76,697,600
931,485,250
2,476,560
5,491
1,230
461
790
L,762,627,600
2,481,532
Reference to text, page 44.
Exhibit U
VICTORY LOAN
Classification of Subscriptions by Banks
Class of Bank
National Banks
State Banks
Trust Companies
Savings Banks
Individuals (including foreign
and private bankers)
Number in
Per cent, of
Number
Amount of
Second
Total
Subscribing
Subscriptions
District
Subscriptions
625
230
204
178
623
225
202
92
Total
$792,064,150
220,576,100
675,388,700
28,482,550
45.0
12.5
38.3
1.6
46,116,100
2.6
$1,762,627,600
Reference to text, page 44.
100.
FEDERAL RESERVE BANK OF NEW YORK
Exhibit V
VICTORY LOAN
Subscriptions by Geographic Sub-Divisions
Division
Sub. District No. 1
(Buffalo & vicinity)
Sub. District No. 2
(Rochester & vicinity)
Sub. District No. 3
(Utica, Syracuse &
vicinity)
Sub. District No. 4
(Binghamton & vicinity)
Sub. District No. 5
(Albany, Troy & vicinity)
Sub. District No. 6
(Long Island)
Sub. District No. 7
(Northern N. J.) ..
Sub. District No. 8
(Westchester Co.,
N. Y., and Fairfield Co., Conn.). .
89
Amount of
Number of Average Sub. per
Subscriptions Subscribers Size
Capita
Quota
$65,440,000
$83,426,500
220,946
$378.
$81.95
31,661,100
35,213,550
100,395
351.
59.32
43,607,700
49,043,800
104,309
470.
57.28
14,175,000
16,682,600
48,834
342.
42.22
52,036,600
60,984,700
150,569
405.
51.33
8,131,100
12,953,200
29,991
432.
58.57
107,887,500
139,121,500
319,117
436.
63.15
26,499,400
35,298,750
97,483
362.
57.49
Total outside Greater
New York
$349,438,400
$432,724,600
1,071,644
$404.
$61.04
Manhattan
Brooklyn
Bronx
Richmond*
Queens*
$927,022,200 ^.1,194,621,300
59,857,400
108,223,650
4,975,600
8,628,100
1,630,400
4,813,000
7,076,000
13,616,950
1,289,873 $926.
74,565 1,451.
11,320
762.
4,602 1,046.
32,528
419.
$470.92
60.17
14.01
48.79
34.32
Total Greater New
York
$1,000,561,600 $1,329,903,000
1,412,888
$941.
$244.18
Total for the District $1,350,000,000 $1,762,627,600
2,484,532
$709.
$140.62
*Parts of, but not included in figures for sub-district No. 6.
Reference to text, page 44.
Exhibit W
GOVERNMENT LOAN EXPENSES
Total of Obligations Incurred to December 31, 1919.
First Loan
Second Loan
Third Loan
Fourth Loan
Victory Loan
General Expense*
War Savings 1918
War Savings 1919
Certificates of Indebtedness Sales 1918
Certificates of Indebtedness Sales 1919
$393,672.10
720,390.19
2,496,722.29
2,733,467.97
2,501,838.83
539,220.31
468,483.86
647,723.04
25,177.88
9,360.18
$10,536,056.65
*"Genera] Expense" is a Treasury Department classification and in this table shows
expenditures incurred for fiscal agency operations other than those specified above
since July 1, 1919.
90
FIFTH ANNUAL REPORT
Chart No. 7
AMOUNT DUE FROM SPECIAL DEPOSITARIES
OF GOVERNMENT FUNDS, SECOND DISTRICT,
EACH FfttDAY, W 4 .
wSJSZ TAN. FEB. MCH. APR. MAY JUN. JUL AUG. SEP. OCT. NOV. DEC
700
400
SCO
100.
300
i
1
j
1r 1
_
J
1
100
1I H
\
1
too
1
'
\
1
V
1
\«
0
JAKF£B.MCH.ft?R.NWW J U N . J U L AUa. SEP. OCT. NOV. DEC.
Reference to text, page 51.
FEDERAL RESERVE BANK OF NEW YORK
91
Exhibit X
GOVERNMENT BOND TRANSACTIONS
Summary of Deliveries, Conversions, Exchanges, Etc.
No. of
Pieces
Fourth loan bonds delivered
1,825,816
Victory notes delivered
3,262,593
3 ^ % Interim certificates received
6,493
3 ^ % bonds delivered in exchange for int. ctfs
5,706
Received for exchange of denomination
11,388,748
Delivered in exchange of denomination
2,294,152
Received for exchange, transfer and registration
456,431
Delivered on exchange, transfer and registration.. ..
161,194
Received for conversion
478,587
Delivered on conversion
317,839
War Savings Stamps, Thrift Stamps and Treasury
Savings Certificates delivered
2,295,408
Filled thrift cards received and destroyed
1,294,063
Redeemed War Savings Stamps forwarded to Washington
287,746
United States Government coupons paid
28,500,000
British Government coupons received for payment..
1,500
52,576,276
Reference to text, page 52.
Amount
$545,728,800.00
1,317,491,700.00
774,350.00
774,350.00
1,443,844,550.00
1,443,844,550.00
373,193,650.00
308,360,950.00
363,814,200.00
359,460,600.00
4,625,634.50
5,176,252.00
1,262,066.22
195,000,000.00
8,000.00
$6,363,359,652.72
Exhibit Y
LIBERTY LOAN PAYMENTS
Classification by Medium of Payment, Fourth Loan (1919)
Date
Certificates
of
Indebtedness
Credit
Cash
Total
Jan. 15, 1919...
Jan. 30, 1919...
$14,898,000
15,944,500
$85,796,935.37
46,851,411.51
$14,862,196.39
15,243,619.76
$115,557,131.76
78,039,531.27
$30,842,500 $132,648,346.88
$30,105,816.15
$193,596,663.03
Classification by Medium of Payment, Victory Loan
Date
May 20,
June 3,
July 15,
Aug. 12,
Sept. 9,
Oct. 7,
Nov. 11,
Certificates
of
Indebtedness
Credit
1919. . . $272,958,000 $189,957,075.50
1919... 290,181,000 286,485,482.91
1919...
2,273,000
48,024,974.90
1919. ..
1,524,000
26,659,805.66
1919. ..
538,000
22,276,985.03
1919. ..
19,125,276.70
12,281,164.92
1919. ..
Cash
Total
$48,542,439.50
60,136,431.68
13,390,748.30
8,253,520.45
6,696,513.01
9,229,129.73
2,596,192.52
$511,457,515.00
636,802,914.59
63,688,723.20
36,437,326.11
29,511,498.04
28,354,406.43
14,877,357.44
$567,474,000 $604,810,765.62 $148,844,975.19
Reference to text, page 52.
$1,321,129,740.81
92
FIFTH ANNUAL REPORT
GENERAL FINANCIAL STATISTICS
Money Rates, Price Ranges, Bank Loans, Etc.
The following tables give in statistical form a record of general financial conditions in 1919, as reflected in Stock Exchange transactions,
money rates in New York, the range of Liberty Rond prices, the loans
and deposits of Clearing House banks and the loans of the banks in this
Federal Reserve District which report weekly to the Federal Reserve
Roard.
Exhibit Z
SECURITY SALES AND ISSUES
Transactions on New York Stock Exchange and New Issues
New York Stock Exchange Transactions
Month
1919
January
February
March
April
May
June
July
August
September
October
November
December
Total
Number
of Shares
of Stock
Sold
United Sates
Government
Bonds
(par value)
Total
Bonds
(par value)
New
Securities
Issued
11,858,465
12,210,741
21,403,531
28,587,431
34,413,553
32,860,365
34,502,242
24,432,647
24,141,830
37,354,859
30,169,478
24,852,583
$167,167,500
179,110,000
198,979,000
232,175,700
196,238,300
186,081,100
204,826,600
206,899,500
242,908,100
269,347,000
295,077,000
522,203,350
$276,858,500
238,364,000
259,712,000
297,874,700
288,994,300
251,713,600
265,588,600
252,417,500
286,960,600
339,655,000
373,967,000
676,700,350
$242,465,700
187,645,000
153,122,500
67,724,000
209,877,600
322,058,000
370,943,300
220,198,500
379,619,400
390,695,100
253,652,900
223,169,300
316,787,725
$2,901,013,150
$3,808,806,150
$3,021,171,300
FEDERAL RESERVE RANK OF NEW YORK
Exhibit AA
93
MONEY IN NEW YORK, 1919
Range of Rates on Stock Exchange Loans and Commercial
Paper
Call Loans on
Stock Exchange
(mixed collateral)
Week Ending
1919
High
Low
Time Loans on
Stock Exchange
(Mixed collateral) Commercial Paper
60-90
Days
4-6 mos.
60-90
Days
6
3.
6
10.
5
17.
5 -5#
5
24.
5
5 -5
5
31.
5 -5#
5
5 -5X
February 7.
6
5 -5J<
14.
6
21.
7
28.
5
March
7.
5
14.
5K
6
21.
6
28.
5K
6
April
4.
5^-5^
6
11.
5K-6
6
18.
^6
25.
5^
May
2.
6
6
9.
16.
7^
23.
7
29.
6
June
6.
10
13.
12
20.
12
6
27.
15
6
10
5.
July
6
15-20*
12.
6
7
19.
6
6
26.
6
18
August
2
6
6
9.
6
6
16.
6
8
23.
6
30.
5^-6
September 5.
^6
12.
6
19.
9
26.
12-15*
October
3.
12
10.
4
15
6
17.
6 -6X
8
6 -7
24.
6
-7
19-20*
6
31.
20
6 -7
6 -7
November 7.
30
6 -7
6 -7
14.
12
6 -7
6 -7
21.
10
6 -7
6 -7
5K-6
28.
6 -7
6 -7
7
December 5.
6 -7
15
6 -7
12.
6 -7
12
6 -7
19.
18
6 -7
26.
6 -7
*The second figure is an unofficial rate after the close of the market.
January
FIFTH ANNUAL REPORT
94
Exhibit RB
LIBERTY BOND PRICES, 1919
Range of Quotations and Volume of Sales on New York
Stock Exchange
($1,000 Bonds)
FIRST LIBERTY LOAN
3#'s, 15-30 year 1932-47
1919
Volume
of Sales
No. of
Bonds
SECOND LIBERTY LOAN
4's, 10—25 year convertible
1942
High
Low
Volume
of Sales
No. of
Bonds
Range of Prices
Range of Prices
High
Low
January
February
March
April
May
June
July
August
September....
October
November....
December
15,032
11,663
16,812
15,538
15,147
12,652
13,832
9,934
10,544
13,070
14,413
16,494
99.80
99.60
99.74
99.40
99.68
99.70
99.66
99.98
100.14
101.00
101.00
100.50
98.50
98.20
98.42
98.44
98.60
99.20
99.20
99.50
99.96
100.00
99.86
99.60
7,528
8,377
15,400
11,689
11,679
7,141
5,526
7,743
11,537
6,541
6,818
9,746
94.10
93.46
93.84
93.80
95.10
94.80
93.96
93.66
94.46
94.28
93.30
92.30
92.10
92.40
93.10
93.10
93.80
93.30
93.18
92.68
92.62
93.00
91.06
91.16
Total for Year
165,131
101.00
98.20
109,725
95.10
91.06
SECOND LIBERTY LOAN
4's, Convertible 1932^-7
1919
January
February
March
April
May
June
July
August
September
October
November
December
Total for Year
THIRD LIBERTY LOAN
4 ^ ' s of 1928
High
Low
Volume
of Sales
No. of
Bonds
1,290
1,567
2,321
3,222
1,357
1,321
1,424
1,415
1,490
1,321
1,347
1,712
94.18
93.80
94.68
96.00
95.94
95.60
95.00
94.30
95.40
95.47
95.10
94.10
92.50
92.74
93.50
94.56
95.40
94.60
93.76
93.80
94.20
95.00
93.90
92.50
19,787
96.00
92.50
Volume
of Sales
No. of
Bonds
Range of Prices
Range of Prices
High
Low
48,071
25,843
52,481
73,419
52,566
34,807
27,683
36,264
47,198
47,388
54,577
104,402
96.50
96.00
95.45
95.98
96.08
96.00
95.20
95.12
96.60
96.26
95.24
94.94
95.30
94.90
94.90
95.02
95.06
95.02
94.82
94.70
94.80
95.06
93.58
93.26
624,699
96.60
93.26
FEDERAL RESERVE BANK OF NEW YORK
95
Exhibit BB—Continued
LIBERTY BOND PRICES, 1919
Range of Quotations and Volume of Sales on New York
Stock Exchange
($1,000 Bonds)
1919
January
February
March
April
May
June
July
August
September
October
November
December
Total for Year
THIRD LIBERTY LOAN
4 ^ ' s , of 1st L.L. Conv.
1932-47
THIRD LIBERTY LOAN
4X's, of 2nd L.L. Conv.
1927-42
Volume
of Sales
No. of
Bonds
Volume
of Sales
No. of
Bonds
Range of Prices
High
Low
1,326
1,457
1,683
3,255
2,746
1,825
2,113
1,564
5,856
2,166
1,775
3,603
96.60
95.60
95.12
96.10
96.10
96.00
95.40
94.60
95.70
95.80
95.30
94.50
95.50
94.60
94.20
93.68
95.50
94.90
94.70
93.70
94.36
95.00
94.10
92.80
29,369
96.60
92.80
Range of Prices
High
Low
27,855
24,472
24,177
19,515
25,058
15,067
19,666
27,939
32,287
25,968
36,035
99,119
95.32
94.60
94.16
93.98
95.36
95.00
94.34
93.90
94.60
94.44
93.38
92.90
94.36
93.74
93.44
93.20
93.90
93.90
93.60
92.78
92.84
93.00
91.40
91.20
377,158
95.36
91.20
FOURTH LIBERTY LOAN FOURTH LIBERTY LOAN
4>fs 1st L.L. 2nd Conv.
4X's of 1933-1938
1932-47
1919
January
February
March
April
May
June
July
August
September
October
November
December
Total for Year
Volume
of Sales
No. of
Bonds
Range of Prices
High
Low
65,726
88,537
83,280
108,794
85,763
58,025
71,258
73,015
81,232
98,032
87,582
184,249
95.72
94.62
94.12
94.00
95.56
95.40
94.38
94.04
94.80
94.42
93.50
93.74
94.30
93.76
93.50
93.12
93.94
94.00
93.22
93.00
93.18
93.12
91.36
91.00
1,085,493
95.72
91.00
Volume
of Sales
No. of
Bonds
Range of Prices
High
Low
13
3
67
1
47
21
9
55
10
121
95
96
99
99
100
100
100
102
101
101
84
02
71
76
50
60
90
06
00
00
95.42
93.38
96.02
99.76
100.10
100.50
100.60
100.91
100.96
100.96
347
102.06
93.38
FIFTH ANNUAL REPORT
96
Exhibit BB—Continued
LIBERTY BOND PRICES, 1919
Range of Quotations and Volume of Sales on New York
Stock Exchange
($1,000 Bonds)
VICTORY
LIBERTY LOAN
^ ' s Conv. Gold Notes
1922-23
1919
May
June
July
August
September
October
November
December
Total for Year
Volume
of Sales
No. of
Bonds
Range of Prices
VICTORY
LIBERTY LOAN
^4's Conv. Gold Notes
1922-23
Volume
of Sales
No. of
Bonds
Range of Prices
High
Low
5,611
22,519
39,096
34,411
37,827
40,799
55,616
59,281
100.00
100.08
100.02
99.92
100.00
99.91
99.54
99.00
99.88
99.80
99.80
99.46
99.88
99.46
99.00
98.80
27,151
16,482
16,242
16,745
19,504
26,572
44,013
100.48
100.14
99.96
100.00
99.96
99.52
99.60
99.98
99.84
99.50
99.46
99.52
99.00
98.80
295,160
100.08
98.80
166,709
100.48
98.80
High
Low
FEDERAL RESERVE BANK OF NEW YORK
97
Exhibit CC
LOANS AND DEPOSITS, 1919
New York Clearing House Banks
(000 Omitted)
Loans,
Net
Discounts,
Investments, Demand
Deposits
etc.
Date
3
10
17..
24 .
31
February 7
14
21..
January
28
March
7
14...
21
28
April
4
11..
18
25
May
June
2
9
16...
23
30
6..
13..
20 ..
27
July
3
11..
18 .
25
1
8
15.. .
22. ,
29 .
September 5
12
17
26..
October
3..
10
17
24
31
November 7
14
August
21
December
28...
5
12
19
26...
$4,775,863 $3,970,567
4,760,327
3,952,299
4,805,045
3,960,733
4,773,704
3,916,797
4,766,899
3,873,062
4,713,812
3,795,231
4,803,649
3,795,729
4,786,565
3,831,656
4,857,594
3,875,556
4,810,034
3,866,192
4,923,043
3,976,668
4,864,957
3,940,779
4,817,438
3,934,275
4,777,987
4,020,729
4,945,997
3,932,593
4,915,502
4,011,096
4,903,203
4,014,523
5,020,633
4,040,391
5,020,762
4,121,927
5,012,730
4,118,964
4,879,621
4,100,168
4,908,960
4,133,578
5,114,362
4,093,895
5,135,419
4,136,929
4,929,813
4,008,333
4,910,566
4,020,071
5,011,433
4,042,535
5,036,825
4,063,560
4,958,117
4,113,809
4,861,063
4,007,455
4,988,089
4,092,403
4,966,173
4,051,199
5,011,836
4,059,292
4,008,609
4,976,925
4,037,160
4,990,270
4,087,217
5,095,870
4,257,000
5,085,678
4,210,677
5,328,662
4,127,505
5,297,474
4,209,054
5,391,817
4,193,391
5,433,003
4,212,273
5,372,457
4,214,729
5,332,277
4,264,819
5,364,812
4,213,567
5,326,144
4,203,020
5,260,297
4,185,680
5,195,672
4,180,621
5,187,479
4,076,498
5,105,303
4,123,980
5,143,208
4,121,492
5,189,509
4,057,164
5,197,481
FIFTH ANNUAL REPORT
98
Exhibit DD
LOANS AND INVESTMENTS, REPORTING RANKS
Classification of Earning Assets, 112 Ranks,
Second Federal Reserve District
(000 Omitted)
U.S.
Bonds
and
Victory
Date
Notes
Jan.
3 $380,105
10 364,588
17 356,998
24 350,394
31 338,277
Feb. 7 336,419
14 334,375
21 334,880
28 341,292
M a r . 7 330,739
14 338,083
21 329,169
28 330,485
April 4 329,570
11 334,611
18 337,952
25 347,514
M a y 2 353,761
9 351,357
16 350,441
23 396,328
29 392,384
June 6 538,349
13 533,637
20 521,539
27 511,653
July 3 506,405
11 506,995
18 502,538
25 491,286
Aug. 1 486,141
8 478,845
15 476,130
22 475,515
29 476,513
Sept. 5 475,971
12 466,641
19 465,504
26 455,224
Oct. 3 452,248
10 450,467
17 454,934
24 457,349
31 458,213
Nov. 7 454,563
14 452,258
21 450,414
28 434,626
Dec. 5 430,820
12 427,459
19 415,437
26 413,345
U.S.
Certificates
Loans
Secured
of
by U. S.
Total
Indebted- u. s.
Bonds,
#
ness
Securities
etc.
$635,343 $1,015,448
637,921 1,002,509
730,901 1,087,899
719,832 1,070,226
727,789 1,066,066
688,070 1,024,489
820,317 1,154,692
789,453 1,124,333
916,493 1,257,785
904,528 1,235,267
1,011,000 1,349,083
905,205 1,234,374
848,462 1,178,947
825,844 1,155,414
985,191 1,319,802
957,000 1,294,952
937,002 1,284,516
1,061,810 1,415,571
1,036,036 1,387,393
1,014,446 1,364,887
772,903 1,169,231
746,939 1,139,323
589,230 1,127,579
537,216 1,070,853
347,222
868,761
291,528
803,181
365,148
871,553
365,773
872,768
339,638
842,176
314,862
806,148
435,233
921,374
424,922
903,767
488,980
965,110
466,532
942,047
452,208
928,721
531,784 1,007,755
460,232
926,873
569,887 1,035,391
525,768
980,992
501,443
953,691
496,488
946,955
460,600
915,534
455,344
912,693
446,205
904,418
399,738
854,301
395,552
847,810
388,873
839,287
381,015
815,641
362,972
793,792
324,934
752,393
332,503
747,940
294,646
707,991
Loans
Secured by All Other
Loans and
Stocks
and
InvestBonds
ments*
$664,934
$4,014,172 $5,694,554
640,981
3,987,569 5,631,059
665,264
3,992,612 5,745,775
656,169
3,970,774 5,697,169
641,654
3,991,812 5,699,532
653,367
3,944,615 5,622,471
624,873
3,962,778 5,742,343
610,442
3,890,435 5,625,210
625,345
3,951,808 5.834,938
584,489
3,961,566 5,781,322
563,976
3,998,556 5,911,615
564,675
4,018,054 5,817,103
564,843
4,019,748 5,763,538
549,743
4,009,529 5,714,686
550,865
4,039,017 5,909,684
544,536
4,021,758 5,861,246
542,169
4,021,840 5,848,525
535,315
4,064,907 6,015,793
528,570
4,111,671 6,027,634
523,367
4,134,789 6,023,043
564,583
4,176,382 5,910,196
576,749
4,189,578 5,905,650
778,099
4,219,075 6,124,753
771,033
4,307,682 6,149,568
784,247
4,258,186 5,911,194
757,373
4,311,848 5,872,402
752,948
4,370,698 5,995,199
767,582
4,381,592 6,021,942
757,413
4,326,934 5,926,523
750,443
4,274,558 5,831,149
744,639
4,318,299 5,984,312
717,317
4,305,692 5,926,776
725,156 $1,402,420 2,977,945 6,070,631
711,724 1,417,420 3,020,756 6,091,947
709,187 1,392,246 2,997,957 6,028,111
705,596 1,386,550 3,059,889 6,159,790
704,296 1,417,503 3,095,933 6.144,605
747,451 1,438,445 3,140,630 6,361,917
739,089 1,458,325 3,168,876 6,347,282
728,753 1,552,764 3,171,617 6,406,825
724,510 1,521,215 3,259,011 6,451,691
709,841 1,547,906 3,220,913 6,394,194
687,845 1,542,953 3,214,233 6,357,724
686,104 1,589,603 3,216,646 6,396,771
601,834 1,559,933 3,280,654 6,296,722
557,124 1,488,037 3,288,514 6,181,485
553,628 1,427,816 3,276,725 6,097,456
543,188 1,430,583 3,288,524 6,077,936
528,072 1,398,127 3,267,192 5,987,183
528,199 1,430,330 3,282,980 5,993,902
522,164 1,462,037 3,342,708 6,074,849
517,533 1,483,103 3,352,240 6,060,867
•Prior to August 15 "Loans secured by stocks and bonds" were included in this account.
Total
FEDERAL RESERVE BANK OF NEW YORK
99
Chart No. 8
TOTAL LOANS AND INVESTMENTS AND TOTAL DEPOSITS OF REPORTING M E M B E R BANKS,
SECOND DISTRICT; AND TOTAL EARNING ASSETS OF FEDERAL RESERVE BANK OF NEW YORK.
M
r TfffAL
Q
ci
a
3
y
H
3
=*
3
LOANS AKm IMVf!>TMFNT5
REPORTINd
MFMBFR
FNT5 - R
PORId M
F M B F R BANKS
NET DEMAND,TIME AND GOVERNMENT DEPOSITS -REPORTING MEMBEK
BANKS
r^Al
ana
too
EARNING A5SFT5-FEDERAL RF5ERVE BANK QF NEW YQRK
a aa
1918
I9IS
LJJ
100
FIFTH ANNUAL REPORT
Exhibit EE
ON MR. TREMAN'S RETIREMENT
Minute adopted by Roard of Directors, October 15, 1919
With great reluctance and at Mr. Treman's insistent request, his
resignation as deputy governor of the Federal Reserve Bank of New
York was accepted by the Board of Directors on October 15, to take
effect on November 1. At the same time the Board of Directors adopted
the following minute:
"When, in June, 1916, the health of Governor Strong necessitated
his taking a long rest, the directors of the bank unanimously requested
and urged one of their number, Mr. Robert H. Treman, President of the
Tompkins County National Bank of Ithaca, New York, and a resident
of that city, to serve also as the deputy governor of the bank during the
absence of Governor Strong. To this call to service Mr. Treman responded loyally, at much personal inconvenience and sacrifice, and on
July 1, 1916, entered upon his duties as the senior executive officer of
the bank, devoting his entire time to the discharge of the duties of that
office.
"When America entered the war against Germany, although Governor
Strong's health then permitted him to return to the bank, its business
had increased so rapidly and to such great volume that he and the directors urgently requested Mr. Treman to continue for the war period his
active service as an executive officer. Again putting aside personal
convenience and desire, Mr. Treman consented, and has now, for more
than three years, discharged the duties of the office of senior deputy
governor, with marked fidelity and distinction. In addition to the general duties of his office he has from the outset and during the entire
period of war financing, directed the distribution of United States Certificates of Indebtedness in the Second Federal Reserve District, which
led all others, both in volume subscribed and in the wide distribution
obtained among member and nonmember banks alike. His written and
other contributions to the development of the more general use of trade
acceptances, also have been notable.
"During these years of active service, his character, his qualities of
fairness and patience, his good judgment and great ability in dealing
with the many important and complex questions which have arisen,
have gained for him the complete confidence and high esteem of the
bankers of this district, and have been largely instrumental in developing
the better understanding that now prevails among member banks of
their relation to this bank, and of its policies and operations.
"The directors of the Federal Reserve Bank wish to express their
affection and profound respect for him, sentiments which have grown
and developed in these years of close association with him, and to record
their acknowledgement and grateful appreciation of the distinguished,
unselfish and patriotic service which he has rendered to the bank and
to the country."
@FedFRASER