Full text of Annual Report of the Federal Reserve Bank of San Francisco : Second Annual Report of the Federal Reserve Bank of San Francisco for the Year Ended December 31, 1916

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SECOND ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF SAN FRANCISCO
FOR THE YEAR ENDED DECEMBER 31, 1916

W ASHINGTON
GOVERNMENT PRINTING OFHCB
1917

SECOND ANNUAL REPORT
OF THE

FEDERAL RESERVE BANK
OF SAN FRANCISCO
FOR THE YEAR ENDED DECEMBER 31, 1916

WASHINGTON
GOVERNMENT PRINTING OFFICE
1917

LETTER OF TRANSMITTAL.
F ederal R eserv e B a n k ,
San Francisco January 1 1917.

,
,
have the honor to submit the following report concerning
the operations of the Federal Reserve Bank of San Francisco and
the field of its activities from January 1, 1916, to December 31, 1916.
Respectfully,
S ir : 1

Hon. W. P. G. H a r d in g ,

J o h n P e r r in ,
Chairman and Federal Reserve Agent

Governor Federal Reserve Board

TABLE OF CONTENTS.
Page.

Financial Results of Operation...................................................................................
7
Earnings, expenses, and dividends.....................................................................> 7
Activities during the year................................................................................... .
8-10
Discount operations...............................................................................................
8
Acceptances. . . ..................................................................................... ...................
8
Effect upon general market rates........................................................................
9
United States bond operations...................... ......................................................
9
Municiapl warrants. , ............................................................................................. 10
Changes in reserve position...................................................................................
i0
Federal Reserve Bank and Member Banks............................................................... 10-14
Change in membership..........................................................................................
10
Branches...................................................................................................................
11
Relations with State banks...................................................................................
12
12
Savings accounts.....................................................................................................
Excess deposits from member banks...................................................................
13
Overdrafts...............................................................................................................
13
Bank failures........................... . ..............................................................................
14
Overdue paper.........................................................................................................
14
Public Relations.............................................................................................................
14
Federal Reserve Bank and the Government.............................................................
15
Federal Reserve Bank and Note Issues......................................................................
16
Internal Management of the Bank.............................................................................. 17-19
Bank premises.........................................................................................................
19
Examination by Federal Reserve Bank examiner...........................................
19
The Clearing Problem.................................................................................................... 19-23
Clearing to July 15, 1916........................................................................................
19
Clearing after July 15, 1916...................................................................................
20
Attitude of nonmember banks.............................................................................
22
Service rendered to the banks by the gold settlement fund..........................
22
General Business Conditions of the Twelfth Federal Reserve District................
23
LIST OF TABLES.
1. Comparative statement of condition as of Dec. 31,1916, and Dec. 31, 1915..
26
2. Earnings, expenses, and dividends......................................................................
27
3. Earnings for the year.............................................................................................
27
3A. Expenditures for the year...................................................................................
28
29
4. Fluctuations in the discount rates.......................................................................
5. Volume and classification of rediscounts...........................................................
29
6. Acceptances..............................................................................................................
30
7. United States bonds.......................... .....................................................................
30
8. Municipal warrants................................................................................................
31
9. Reserve at the beginning of each month............................................................
31
10. Deposit of the Treasurer of the United States at the beginning of each month.
31

TABLE

CONTENTS.
Page.

11. Gold settlement fund........................................................................................ . 32
12. Federal Reserve notes issued and redeemed by Federal Reserve agent
during 1916............................................................................................................ 32
13. Comparison of deposits and loans of national banks in this district with
those of a year ago................................................................................................ 33
14. Reserve in vault prior to establishment of Federal Reserve System com
pared with reserve in vault combined with deposit in Federal Reserve
Bank at present.................................................................................................... 34
15. Check collection—Interdistrict transactions........................................ ............. 34
16. Comparison of loans and investments and deposits on June 30, 1914, with
those on corresponding dates in 1915 and 1916 and on Nov. 17, 1916............ 35
EXHIBITS.
A. Comparison of resources of national and State banks of this district.....................36
B. Bank clearings of the principal cities of this district................................................37
C. Applications under the Kern amendment to the Clayton Act........................ ....... 37

SECOND ANNUAL REPORT OF THE FEDERAL RESERVE
BANK OF SAN FRANCISCO.
Joh n P e r r in ,

Chairman and Federal Reserve Agent.

F in a n c ia l R e s u l t s

O p e r a t io n .

During the year 1916 the resources of this bank have more than
doubled, as shown in the following comparative statement:
Dec. 30,
1916.

Dec. 31,
1915.

BESOUBCES.
$250,968
Bills discounted for member banks........................................................................
Bills bought, open market...................................................................................... 12,462,266
737,376
Municipal warrants................................... *............................................................ .
United States bonds and notes............................................................................... . 3,133,750
Furniture and equipment....................................................................................... .
Cost of unissued Federal Reserve notes...................................................................
Cost of Federal Reserve Bank notes........................................................................
Expense of organization............................ : .............................................................
465,930
Other resources................................................................................................* .......
Due from other Federal Reserve Banks.................................................................. 4,241,904
Gold, including Federal Reserve notes exchangeable for gold with Federal Re
serve Agent............................................................................................................ 22,795,813

15,173,717

45,088,007

21,714,587

3,929,300
15,417
Untiivicfed profits.....................................................................................................
33,188
Unearned discount....................................................................................................
947,794
Due to other Federal Reserve Banks......................................................................
Due to member banks (net)..................................................................................... 36,477,704
Government deposits................................................................................................ 3,643,138
41,466
Other liabilities.........................................................................................................

3,941,800

Total.............................................................. .................................................

$467,162
683,840
344,978
1,000,475
93,996
15,553
3,934,866

LIABILITIES.

Total................................................................................................................

45,088,007

4,740
10,541
17,321,863
427,320
8,323
21,714,587

EARNINGS, EXPENSES, AND DIVIDENDS.

The net earnings (Table 2) for the year have amounted to $59,153.09,
out of which two dividends at the rate of 6 per cent per annum have
been paid, the first on October 1, 1,916, covering the period November
16, 1914, to December 31, 1914, and the second on December 30,
1916, for the period from January 1, 1915, to March 31, 1915. Abalance of $15,416.87 undivided profits remains. In addition to all
current expenses, there have been charged off all organization
expenses, $45,085.09, the cost of all furniture and equipment,
$12,589.59, the cost of engraving plates for Federal Reserve Bank
notes, $480, and the cost of engraving, printing, and shipping Federal
Reserve notes, $56,804.69, a total of $114,959.37. Only cash and

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

current earning investments are carried on the books at this date as
live assets.
The net earnings by months have been as follows:
Deficit.

January ................ ............... ....... ......................... ........ ............ . ....... ....... .....................

$5,398.74
1,781.27

February...................................................................................................................
March....................................................................................................... 1................
April...........................................................................................................................
May............................................................................................................................
June...........................................................................................................................
July............................................................................................................................
August.......................................................................................................................
September.................................................................................................................
October......................................................................................................................
November..................................................................................................................
December...................................................................................................................
Total.............................................................................................................

7,180.01

Net...................................................................................................................
Dividend No. 1.........................................................................................................
Dividend No. 2..........................................................................................................
Charged off:
Balance furniture and equipment.....................................................................
Balance organization expense............................................................................
Balance cost of unissued Federal Reserve notes...............................................
Cost Federal Reserve Bank notes....................... .*.............................................

12,340.97
31,395.25

Excess
earnings.

$1,306.67
4,189.81
6,578.04
9,350.34
18,099.85
18,524.51
16,917.68
22,099.55
24,417.63
35,545.09
157,029.17
149,849.16

12,589.59
35,390.44
42,236.04
480.00
134,432.29

Undivided nrofits___________ ________________ ________________ _______

A c t iv it ie s D u r in g

the

15,416.87

Y ear.

DISCOUNT OPERATIONS.

Discount rates (Table 4) during the year have remained substan
tially as fixed in January, 1915. A total of $1,973,355 has been redis
counted during the year, the classification being shown in Table 5.
The largest aggregate of rediscounted paper was $572,619, held on
July 18, and the smallest $228,922, held on October 23.
There has been no disposition manifested by member banks to
avail of the opportunity to rediscount commodity paper. It may be
that conditions will arise in the future which will cause more active
interest in this class of paper.
There has been considerable discussion among dealers and credit
men regarding trade acceptances, with here and there a concern of
especial enterprise and alertness entering upon their use. To se
cure settlements in the form of trade acceptances for merchandise
sold, instead of carrying unavailable open accounts, yields advantages
so manifold and important that this method seems sure of being
widely adopted when dealers realize the advantages obtainable,
including lower interest rates than on direct borrowings.
ACCEPTANCES.

This bank’s most important volume of investments during the
year has been in acceptances, a total of $32,775,678 having been
purchased at rates ranging from If to 3|- per cent. The maxi

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

mum rates for the year are prevailing as the year closes. The
total held at one time has fluctuated between a minimum of
$665,880 on February 21 and a maximum of $12,832,686 on Decem
ber 14 (Table 6). These acceptances have been chiefly those of New
York banks, with lesser amounts of banks in Boston and Philadel
phia. Banks of the twelfth Federal Reserve district have engaged
little as yet in acceptance business, although a quite important vol
ume would apparently be possible for them in the trade with the
Orient as well as in domestic transactions. Some of the most impor
tant banks have had no such transactions thus far.
Of acceptances offered for purchase in San Francisco, those of one
Japanese bank have exceeded in volume those of any other bank.
Purchases of acceptances of Pacific coast banks have been at the
same rates as those of New York banks. With equally favorable
rates, the opportunity offers for creating a discount market of some
importance on this western coast with profit to acceptors and added
opportunities for enlarged trade. Because of short maturity, min
imum of risk, certainty of payment at maturity, and breadth of
market, if sale or rediscount should be desired, such paper would
seem to be an ideal investment not only for Federal Reserve banks
but also for member banks.
effect upo n general m arket r a tes.

Aside from a relatively small volume of acceptances growing chiefly
out of oriental business and offered in San Francisco, and aside from
the small volume of rediscounts, the investment operations of this
bank have been so largely in New York that they have at present no
important influence upon the general market rates of this district.
The published rediscount rates have probably influenced somewhat
the rates charged borrowing banks by correspondents, but credit
conditions have been so easy throughout the district that any sound
bajik desiring to borrow has been able to secure satisfactory rates
without difficulty. When lending rates advance generally* it may
perhaps be reasonably anticipated that the relatively low discount
rates likely to be maintained by Federal Reserve Banks, through
moderating the advances in discount rates accorded to country banks
by their correspondents, will influence lending rates more than dur
ing the past year.
UNITED STATES BOND OPERATIONS.

In addition to $1,010,000 2 per cent United States bonds bought
previously, there have been purchased during the current year 2
per cent consols amounting to $2,623,750. Except $25,000, these
have all been bought from member banks (Table 7).
Under the privilege granted by the Federal Reserve Act $1,000,000
of these have been converted—$500,000 into United States 3 per cent
85721—17----- 2

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

one-year gold notes, and $500,000 into United States 3 per cent
30-year gold bonds. The latter have all been sold at a slight
premium.
Although the one-year gold notes, at the option of the Secretary
of the Treasury, carry the obligation of the recipient Federal
Reserve Bank of annual renewal for 30 years, yet they constitute a
security readily salable in this or other countries if need should arise.
Prior to purchase these United States bonds were pledged to secure
national-bank circulation, which was retired in order to release the
bonds. As similar circulation has not been issued by the Federal
Reserve Bank, the net result has been a reduction in the amount of
bond-secured circulation.
MUNICIPAL WARRANTS.

During the year'a total of $5,962,621.14 municipal warrants have
been purchased, as shown in Table 8. The inconle basis has ranged
from 2 per cent to 4 per cent, and for the most part those bought
have been issued in anticipation of taxes by New York and other
eastern cities. A few California bonds have been bought, classed as
municipal warrants, because having maturity within six months and
accumulated sinking fund. When the laws of the several States in
this district are changed so as to authorize the issue of such municipal
warrants, Pacific coast municipalities will also benefit by the oppor
tunity to secure temporary loans at correspondingly low rates. Con
siderable interest has been manifested by citizens of Seattle in this
matter.
CHANGES IN RESERVE POSITION.

Table 9 gives the reserve position of the bank at the beginning of
each month during the year. In this calculation Federal Reserve
notes held in the bank s cash have been counted as gold, because imme
diately exchangeable for gold by presenting to the Federal Reserve
Agent.
F ederal R eser v e B a n k

and

Mem ber B ank s.

CHANGE IN MEMBERSHIP.

The capital of member banks in this district compared with one
year ago is as follows:
Date

Capital.

Dec: 31,1916..
Dec. 31,1915..
Increase.

470,000

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

National banks of the district show an increase over a year ago of
approximately 28.3 per cent in deposits and 22.8 per cent in loans
(Table 13).
During the year six national banks, having aggregate capital of
$610,000, converted into State banks, and three State banks, having
aggregate capital of $800,00Q, converted into national banks.
There are many evidences that the relations between this bank
and its member banks are those of increasingly good understanding
and mutual confidence. As opportunities have presented for per
sonal interchanges, misapprehensions have been cleared away, and
member banks more generally havie come to realize the earnest pur
pose of this bank to render service and its sure and prompt response
without red tape.
Grumbling may be an evidence of vigor. An old sea captain of
this coast, when his mate reported that the crew were all grumb
ling, remarked: “ What of it. Do you want them all sick?” In the
shift from the old system to the Federal Reserve system, probably no
one matter has occasioned more grumbling than that reserve deposits
are required to be carried with the Federal Reserve Bank without
interest in view of the fact that so-called reserve deposits previously
carried with member banks in reserve and central reserve cities
usually bore 2 per cent interest. That this grumbling has not been
warranted is shown by the fact that lawful money reserve carried in
the vaults of national banks of this district on October 31, 1914, just
prior to the establishment of the Federal Reserve system, averaged
12.5 per cent of deposit liabilities, while on September 12, 1916,
member banks reserve in vault and deposits with the Federal Reserve
Bank taken together averaged only 11.4 per cent of deposit liabilities.
(Table 14.) In other words, with less noninterest bearing reserve
the advantages were had of the fortification of each member bank by
the Federal Reserve system and the freedom to lend at full interest
rates considerable amounts previously loaned at 2 per cent to other
banks in the form of so-called reserve deposits.
Increased profit has thus been made possible and in many instances
banks availing of the new opportunities under the Federal Reserve
Act have shown increased income in spite of abnormally low lending
rates throughout the year.
BRANCHES.

In no other district do the distances make it so necessary to estab
lish branches in order to give adequate service to all member banks.
This matter is one which has been under frequent consideration, but
action has been deferred in order to gain fuller Imowledge of the
requirements and possibilities of branches from experience in the

REl-ORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

operation of the head office and until the bank’s income would justify
the important increase of expense which the establishment of branches
would entail. While rediscounts for the entire district can be well
cared for at the head office for an indefinite period, it is recognized
that efficient clearing of checks will ultimately require offices of this
bank at several points in the district.
RELATIONS WITH STATE BANKS.

No State banks or trust companies in this district have joined the
Federal Reserve system. In California this is doubtless due in part
to the State banking law, and in the other States in part to the fact
that near-by branches have not yet been established. In the main,
however, friendly relations exist between State banks and trust com
panies and this bank. It is believed that there is growing apprecia
tion of the fact that even the smallest nonmember bank benefits
importantly even though indirectly by the existence of the Federal
Reserve system. The following letter is from a Utah State bank
dated October 28, 1916 :
F ederal R ese r v e B a n k ,

San Francisco, Col.

: Sometime ago we had some correspondence with you
in regards to paying our checks sent us by you for collection at par.
You will recall we expressed a willingness to pay all checks at par
with exception of those that should come through the Salt Lake
Clearing House.
Since that time we have given the matter considerable thought and
have also talked it over with our bankers in Salt Lake City. We
have learned more about the real value of the system and are con
vinced that it is a good thing. We feel eventually that all nonmember
banks are going to give the system their undivided support and con
sequently we wish to fall in line right now: So if you will send all
collections direct to us we shall be pleased to issue our Salt Lake draft
and remit to you at par.
We trust this meets with your approval and hope to do our share in
making the system a success.
G e n tle m e n

SAVINGS ACCOUNTS.

The California bank act provides in part (sec. 49): “It shall
not be lawful * * * to solicit or receive * * * savings
* * * except in the case of * * * banks * * * subject
to the provisions of this act. Any * * * bank violating any
provision of this section shall forfeit to this State one hundred dol
lars a day * * *
and in section 144: “Whenever by the
terms of this act a penalty or forfeiture is imposed, the same shall be
recovered in an action brought at the request of the superintendent
of banks by the attorney general * *

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO,

The superintendent of banks holds that this makes it unlawful
for national banks in California to accept or advertise for savings
accounts, and has indicated that he will'impose the penalty provided,
which he will seek to have the attorney general bring proceedings to
recover in the case of any national bank acting in contravention of
.the act quoted. Counsel of the Federal Reserve Board and counsel
of the Federal Reserve Bank hold that the Federal Reserve Act, out
ranking in authority the State statute, gives all national banks
absolute right to receive savings accounts and to>advertise for them.
A number of national banks in California are accordingly accepting
savings accounts and advertising for them by window signs and other
wise. In each instance in which the superintendent of banks has
challenged the exercise of these rights by a national bank, the Federal
Reserve Bank has offered to appear by its own counsel and defend
at its own expense any action brought. The attorney general, how
ever, has brought no action in any instance.
EXCESS DEPOSITS FROM MEMBER BANKS.

Although the recent amendment to the Federal Reserve Act by
ruling of the Federal Reserve Board gives to member banks authority
to carry with the Federal Reserve Bank any part of their total
required reserve, little disposition has been manifested to carry with
the Federal Reserve Bank a larger proportion than that required.
All habits are slow to change, habits in banking perhaps slowest
of all, as many banks still operate without availing of the new oppor
tunities offered through the Federal Reserve Act by whiph their
profits could be increased. But beyond this is the fact that so
long as clearing-house balances must be settled with cash from vault,
the cash so carried must be considerable enough to meet these daily
requirements. If, however, clearing-house balances were settled
by transfers on the books of the Federal Reserve Bank, excess bal
ances would naturally be carried with the Federal Reserve Bank to
meet the fluctuating requirements, and the vault cash would diminish
to an amount found convenient as till money.
OVERDRAFTS.

The inaximum deficiency in reserve deposits in any month during
the year has been an average of $69,200 in the combined balances of
38 banks in the month of September. The imposition of the penalty
tax upon deficiency in reserves, as required by law, has occasioned
greater care in maintaining reserve deposits at the required point.
Weekly reports are furnished by member banks showing the daily
totals of demand and time deposits and the reserve required to be
carried with the Federal Reserve Bank, although banks having net

REPORT OP FEDERAL RESERVE BANK OP SAN PRANCISCO.

deposits of less than $1,000,000, instead of giving daily figures, give
only those of each Friday. These reports are compared with the
books of this bank and form the basis for computing the penalties
for deficiency of reserves.
This bank has had no occasion to cause special examinations of any
of its member banks to be made during the year.
BANK FAILURES.

Since the establishment of the Federal Reserve system, November
16, 1914, there has been no failure of a national bank in this district.
During the same period there have been seven failures of State banks,
three in Arizona, one in Oregon, and three in Washington.
OVERDUE PAPER.

It has been the practice of this bank, for the most part, to send for
collection, some days before maturity, paper rediscounted for member
banks, to the member bank from which received, charging the same
to the account of that bank on the day of maturity. This bank has
had no instance of overdue paper and no loss whatever in rediscount
transactions.
PUBLIC RELATIONS.

The public has unquestionably accepted the Federal Reserve sys7
tem as an instrumentality of inestimable value to commerce and
industry in all departments. Occasional critical articles in news
papers, usually growing out of lack of understanding of principles or
misinformation as to facts, seem to find no responding approval
among business men. But although there is general faith, there is
often haziness of ideas about the Federal Reserve system. The
truth of this could not be more clearly shown than by the following
selected answers to questions put to those seeking licenses as teachers
in one of the States of this district:
Question:
a. What is the Federal Reserve Act of Wilson's administra
tion?
b. How many banks were formed and how governed ?
Answers:
1. The Federal Reserve Act was making a park in Colorado—
very much like Yellowstone National rark.
2. To form national reserve banks to aid in bringing the war
in Europe to a close.
3. The regional banks are to be controlled by corporations
elected by the President.

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

4. The Federal Reserve Act is the tax he has levied or the
stamps he has caused to be put on all goods bought or
sold in the United States. There is also a tax on tele
grams, telephone long-distance calls, etc. This is to raise
a fund to improve the Army and Navy and help pay the
national debt.
5. The Federal Reserve Act is taking care of the old soldiers
and having them practice war.
6. There is a Federal Reserve Bank in each city of over 10,000,
controlled by the officers.
7. The Federal Reserve Act is one storing money of the country
and anyone who is without money or “broke” can go to
these banks and get what money they need.
8 The Federal Reserve Act was to lay aside a certain amount
of the United States money and this is to be used only in
times when the country is in need of it and demands its
usage. This money is to be used only when all other
money of the United States is at ail end.
Organized and systematic public relations work would be invalu
able, both in informing the public so that through knowledge they
would have intelligent reliance in sound member banks fortified by
a Federal Reserve Bank, and also in developing the understanding of
member banks with resulting greater cooperation and consequent
profit to themselves and benefit to general business. With better
understanding of the purposes and possibilities of the Federal Reserve
system, nonmember banks would become member banks, corre
spondingly strengthening the Federal Reserve system and increasing
the stability of business.
The objective results of the Federal Reserve system so depend upon
knowledge both of bankers and of the public that it seems important
that this phase of a Federal Reserve Bank’s endeavors should not be
sporadic, but in conformity with a definitely organized plan. Prog
ress in development seems likely to be in direct proportion to the
character and quality of such effort.
F ederal R eserv e B a n k

a n d t iie

Governm ent.

The amount of the Government deposit balance with this bank at
the beginning of each month during the year is shown in Table 10.
During the year gold transfers through the subtreasury, to other
subtreasury cities, chiefly New York, and to the Treasury at Wash
ington, have been made to the extent of $26,480,000. Transfers to
the extent of $3,100,000 have been made in the reverse direction.
In like manner transfers have been made to the gold settlement fund
in Washington to the extent of $82,781,000, and transfers have been
received from the gold settlement fund to the amount of $119,960,000
(Table 11).

BISPORT OF FEDERAL RESERVE BANK OF SAN FBANCISCO.

Mr.. Claud Gatch, the chief national bank examiner of the district*
both from personal inclination and in accordance with instructions
from the Comptroller of the Currency, cooperates fully and cordially
with this bank. When examiners are called here for a periodical
conference, he makes opportunities for the officials of this bank to
meet them and benefit by personal discussions.
Transcripts of considerable parts of the reports of all National
Bank examinations are furnished to the Federal Reserve Agent, and
fuller details given upon special request.
Upon request of this bank, there has been printed a stock of its
Federal Reserve notes, of which $44,440,000 are immediately avail
able, $15,980,000 being stored at the San Francisco subtreasury and
the remainder in Washington.
F p;d e r a l R e s e r v e B a n k

and

N o te I s s u e s .

It has been the constant policy of this bank to use Federal Reserve
notes for money payments whenever possible, with the purpose of
retaining gold as reserve and having cash settlements effected with
credit instruments, thus adding proportionately to the strength of
the Federal Reserve Bank, since each dollar in gold in its possession
becomes a potential two dollars and a half by its constituting the
required reserve against that amount of credit whether extended in
the form of Federal Reserve notes or of a credit upon the books of the
bank. Against the pledge of commercial paper, a net total of
$8,331,090 of Federal Reserve notes has been issued during the year
by the Federal Reserve Agent to the Federal Reserve Bank.
The bank has reduced this liability by depositing with the Federal
Reserve Agent, as provided by law, an equal amount of gold, the
commercial paper pledged being thereupon surrendered to the bank.
It results therefore that all the Federal Reserve notes of this bank at
present outstanding are covered by 100 per cent gold. The amount
of each denomination issued is shown in Table 12.
Of a total of $20,891,000 Federal Reserve notes paid out by this
bank since November 16, 1914, $1,938,910 have been redeemed and
destroyed. The interdistrict movement of the Federal Reserve
notes of this bank shows that the points to which the largest volume
leaving this district finds its way are in the order named: New York,
Chicago, and Minneapolis. It also appears that about four times
as many move out from this district as move from other districts
into this.
All national-bank notes find their way to the United States Treas
urer at Washington for redemption, none being presented to the
issuing banks. It is in contrast with this that only about one-third
of the Federal Reserve notes of this bank are presented at the Treas
ury in Washington, while two-thirds are presented direct at the

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

counter of this bank either by member banks for deposit or by other
Federal Reserve Banks for payment. With such facility of redemp
tion, redundancy appears impossible.
This bank has issued no Federal Reserve Bank notes, which cor
respond exactly to national-barik notes secured by United States
bonds except that they are the issue of Federal Reserve Banks
instead of national banks. Four million dollars of such notes, how
ever, have been printed for this bank and are available for immediate
issue. If this bank should have occasion to realize on the United
States bonds which it owns and which are held in Washington for
safe-keeping for- its account, it could deposit them with the Comp
troller of the Currency and receive at once the par value in Federal
Reserve Bank notes.
The process of issuing Federal Reserve notes is now very cumber
some, the Federal Reserve Bank making application to the Federal
Reserve Agent and pledging a part of its commercial or bank paper as
collateral. These notes when issued become a first lien on all the
assetsof the issuing Federal Reserve Bank, which is under obligation
to provide money to redeem them. The Federal Reserve Bank, of
course, parts with the notes only for an equal value in gold or highgrade, well-indorsed commercial paper, payments of which con
tinually provide it with money for redemption. There seems to be
an inconsistency in the provisions for issue. The Federal Reserve
Agent is now custodian of large amounts of unissued Federal Reserve
notes, or of commercial paper pledged by the Federal Reserve Bankr
or of gold paid to him by the Federal Reserve Bank to offset its
liability on Federal Reserve notes.
Particularly, in considering the possibility of efficient service
through branches, does it seem important to make a change in the
method of note issues. The Federal Reserve Act makes no provi
sion for the issue of notes at branches, and apparently the only way
to have a supply of them at branches would be for the parent bank
to invest a part of its means in such notes.
I nternal M anagem ent

of the

B ank.

With the exception of Mr. Alden Anderson, class A director, who
lives in Sacramento, three hours distant, all directors live in San
Francisco, and their great regularity of attendance at meetings, held
on the first and third Tuesdays of each month, assures invariably
larger meetings than a mere quorum of five. Matters both of general
policy and to a considerable extent of detail are considered by the
entire board. The members of the executive committee of five indi
vidually investigate and sign the executive committee report of in
vestments submitted at each directors’ meeting, but because of the
85721—17----- 3

REPORT OP FEDERAL RESERVE BANK OF SA3ST FRANCISCO.

close touch of the whole board of directors with the bank's affairs
formal meetings of the executive committee are rarely called.
Upon the expiration of the term of Mr. Charles A. Peabody, of
Seattle, who found it impracticable to continue to serve because of
the great distance, the Federal Reserve Board, in January, 1916,
appointed as class C director Mr. Walton N. Moore, president of the
Walton N. Moore Dry Goods Co. (Inc.), of San Francisco, and desig
nated him vice chairman and deputy Federal Reserve Agent, to serve
without salary, but with a per diem allowance for time given to the
bank. This superseded the previous designation of Mr. Claud Gatch,
chief national bank examiner, in accordance with a declaration of
policy by the Federal Reserve Board that bank examiners would be
ineligible to serve as class C directors and deputy Federal Reserve
Agents. Mr. Gatch was continued as director to the end of his term,
at the close of the year 1916.
The appointment as class C directors of men of large affairs, such as
Mr. Moore, gives important dignity and influence to the Federal
Reserve Board's representatives on the Board of Directors of the
Federal Reserve Bank, but in such designations for vice chairman
and deputy Federal Reserve Agent, without salary, it seems a reason
able view that but little active service could be expected beyond pre
siding at board meetings.
The department of the Federal Reserve Agent is provided with no
subordinate officer for current service.
It has been a cause of much pride and satisfaction to those asso
ciated in the bank with Gov. Kains that the President of the United
States honored him with an appointment as a member of the Inter
national High Commission which during the past year visited a number
of South American and Central American countries with a view to
opening up new opportunities for our foreign trade.
During the year there have been the following changes in the staff:
Upon the resignation at the close of the year 1915 of Mr. Russell
Lowry, deputy governor, to become president of the First National
Bank of Oakland, Cal., Mr. John U. Calkins was promoted to be
acting deputy governor, and on August 1 was elected deputy governor.
Hr. Clifford J. Shepherd, acting both as assistant to Federal Re
serve Agent and as assistant cashier, relinquished the former posi
tion in compliance with a ruling of the Federal Reserve Board against
division of services between the two departments. He continues as
assistant cashier.
The clerical staff has been increased from 15 on January 1, 1916,
to 56 on December 31, 1916.
The deputy governor carries on the correspondence in connection
with rediscounts and in connection with many general matters,

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

and takes full charge of the governor's office during the latter’s
absence.
The cashier carries on the correspondence growing out of check
collections and all matters pertaining to accounting, etc., the assist
ant cashier dividing this work with him and serving as acting
cashier during the cashier’s absence.
The official staff of the operating department is exceptionally well
organized and efficient.
BANK PREMISES.

The present office of the bank, rented at $9,600 per year, is becom
ing increasingly inadequate in consequence of the rapid expansion of
the clerical force incident to the growing volume of check collections.
Its vault facilities are unsatisfactory, in that access is had through
the office of another bank, with which the vault is occupied in com
mon. There have been rumors from time to time that this bank
has arranged or is arranging to erect a building of its own. Such
rumors have been without foundation, as neither the acquirement of
a building site nor the erection of a building have been under con
sideration.
EXAMINATION BY FEDERAL RESERVE BANK EXAMINER.

Periodical examinations of a most thorough character have been
made of this bank by the division of audit and examination of the
Federal Reserve Board.
The copy left with this bank of the report of the examination as
of the close of business August 12,1916, contains the following: 1‘The
bank is economically administered and a high standard of internal
management is maintained. A good credit department is maintained
and the auditing system is very complete.”
T h e C l e a r in g P r o b l e m .
CLEARING TO JULY 15, 1916.

General clearing of reserve balances was undertaken at the opening
of this bank on November 16, 1914, at which time the bank offered
to receive from its members, for immediate credit as reserve, their
drafts on member banks located in reserve cities of this district.
This privilege was availed of by numerous member banks, many of
which left with this bank until collected the funds represented by such
deposits. Immediate credit for reserve and checking purposes had
been granted by this bank, however, and a number of the depositing
banks immediately withdrew funds so deposited, leaving Federal
Reserve Bank to carry the float until the drafts could be col
lected. Debit to the drawee member banks’ accounts upon date

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

of receipt by this bank merely reduced total deposits and in no way
relieved Federal Reserve Bank of carrying the float. On February
17, 1915, therefore, member banks desiring funds transferred to their
credit from other member banks were requested to issue and forward
their drafts direct to the drawee member banks for credit of and
advice to the Federal Reserve Bank. The element of outstanding
time was thus reduced to a minimum and the general clearing of
reserve balances placed upon a sound economic basis.
Clearing of checks was commenced on a limited scale on August 1,
1915. The privilege of depositing out-of-town checks with the Federal
Reserve Bank for collection was extended at that time only to
those member banks which would agree to cover without exchange
deduction all checks upon themselves received from or for account of
their Federal Reserve Bank. The drawee member banks’ accounts
were not debited for items sent until ample time had elapsed for
covering remittance to be received; the depositing banks’ accounts
were not credited until the items were actually collected. Banks
joining the collection system were authorized to print upon their
checks the words “ collectible at par through Federal Reserve Bank
of San Francisco.” About one-third of the member banks in this
district joified the collection system on this basis. Banks in the
principal collection centers which had previously been charging
exchange did not cooperate. Banks joining the collection system
and which had previously been charging exchange gained no direct
advantage through discrimination of the depositing public in favor
of their checks, because the large number of points not collectible
through the Federal Reserve Bank and the small degree to which
the system was used by the member banks rendered ineffectual that
which should have been an advantage to them of having their checks
circulate at par. The limited number of items which could be col
lected through the Federal Reserve Bank made the service offered
to joining banks of so little value as not to offset their loss of exchange
charges, and the tendency was toward a decrease in the number of
joining banks. It was conclusively demonstrated that the system
must cover the field more thoroughly if the clearing of checks through
the Federal Reserve Bank were to be effective.
CLEARING AFTER JULY 15, 1916.

A general clearing of checks was undertaken under date of July 15,
1916, under instructions from the Federal Reserve Board based
upon the authorization to require Federal Reserve Banks to act as
clearing houses for their member banks, the Board having issued a
circular dated May 1, 1916, requiring all member banks to cover
without exchange deduction items which they might receive from

REPOET OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

or for the account of their Federal Reserve Bank. This bank under
took to receive checks on every bank in this district and all checks
which could be collected through other Federal Reserve Banks,
believing that the member banks were entitled to a clearing system
as complete as possible in return for the requirement that they cover
checks upon themselves without exchange deduction. As State
banks were enabled to collect checks on member banks without
exchange deduction through the medium of other member banks,
it was felt that member banks should in turn be enabled to collect
all of their State bank checks through the Federal Reserve Bank.
The collection facilities offered have been availed of by member
banks to a constantly increasing extent, the average daily number
of out-of-town items received from member banks of this district
having increased steadily from 641 in July to 1,107 in August, 1,332
in September, 1,479 in October, 1,682 in November, and 1,705 in
December. For the same months, respectively, the average daily
number of out-of-town items received from all sources was 1,186,
2,166, 3,886, 4,583, 4,784, and 4,946. Items from member banks of
this district have been received chiefly from reserve city banks. A
large number bear the indorsement of interior banks. It is unlikely
that many items will be received direct from interior banks until
their balances with reserve city banks cease to count as reserve,
such balances now being accepted by the reserve city banks in lieu
of direct payment for the various costs which the latter are called
upon to absorb in the collection of these checks.
Under the clearing system now in operation, all collectible items
may be deposited direct with the Federal Reserve Bank of San
Francisco; also items on member banks may be deposited direct
with the drawee member banks for credit o{ the Federal Reserve
Bank, and items on other districts, by special arrangement, may be
forwarded direct to the other Federal Reserve Banks for credit of
Federal Reserve Bank of San Francisco or to the drawee member
banks for credit through their Federal Reserve Banks. Provision is
thus made for a minimum lapse of time in the collection of checks.
Member banks are permitted to debit the Federal Reserve Bank’s
account on their own books on the date items are mailed to this bank
or to other banks for this bank’s credit; until collected, the funds are
not available for checking purposes nor as part of their required
reserves, but may be counted as optional reserves on date of mailing.
Banks near by are forwarding items for collection direct to the
Federal Reserve Bank; those at a distance are forwarding them
direct to member banks for credit of the Federal Reserve Bank.
Service charges, to cover actual cost of handling, are made for items
handled direct by the Federal Reserve Bank.

REPORT OF FEDERAL RESERVE BANK OF SAN .FRANCISCO.
ATTITUDE OF NONMEMBER BANKS.

Fully one-half of the nonmember banks were willing at the out
set to cooperate in a plan for par clearing of checks. The attitude of
the other half ranged from moderate indifference to pronounced
opposition. With the conviction that no plan for collection of checks
by a Federal Reserve Bank could be of important service unless
open for all checks, the plan was adopted of accepting all checks on
both member and nonmember banks of this district, so that all
would be on the same footing. Of course there has been no restric
tion as to the charges of a member or nonmember bank for cashing
checks drawn on other banks. While a drawee bank can make no
direct profit in remitting the face value of checks drawn upon itself,
the Federal Reserve Bank has granted every latitude and .extended
every facility possible so that remitting banks would not suffer loss.
The net result has been that with 1,286 nonmember banks in this
district, checks upon 1,102 are now being collected without deduction
for exchange.
SERVICE RENDERED TO THE BANKS BY THE GOLD SETTLEMENT FUND.

The gold settlement fund established by the Federal Reserve
Board on May 1, 1915, has played an important part in the Federal
Reserve Bank’s check-clearing operations. Approximately 75 per
cent of the checks cleared by this bank have been received from
other Federal Reserve districts. The amounts so received are credited
to the sending Federal Reserve Banks, and, at regular intervals, the
proceeds transferred to them through the gold settlement fund.
Checks on other districts forwarded by banks in this district to banks
in central reserve cities for collection have always been available to
count as reserve from date of mailing and this condition will con
tinue until the final transfer of reserves. Therefore very few items
on other districts have been received for collection, the total number
from July 15 to December 31, 1916, having been only 9,006 against
321,630 items on this district received from other Federal Reserve
districts. The amount of checks diverted from their previously
accustomed channels and now being collected through the Federal
Reserve Bank has resulted in the member banks of this district
holding an excess of eastern funds which they have found con
venient to clear through the Federal Reserve Bank. During the
period from July 15 to December 31, 1916, this bank’s deposits have
increased $13,394,000, and the bank has received froip. and for the
credit of other Federal Reserve Banks items to the extent of $69,166,000, making a total received of $82,560,000. During the same period
there have been purchased from member banks net transfers of funds
from other districts in an amount almost exactly offsetting, viz,
$82,061,000.

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

Table 15 shows in detail the relation between the net amount of
cash letters received from other Federal Reserve districts and net
transfers from other districts purchased by this bank. The fluctua
tions beyond these amounts represent withdrawals or deposits of gold
through the local United States Subtreasury, together with variations
in the balances due this bank from the gold settlement fund. It is
*Iso interesting to note that the amount of cash letters sent by member
banks of this district direct to banks in other districts for this bank’s
account almost equals the amount forwarded by this bank itself.
GENERAL BUSINESS CONDITIONS OF THE TWELFTH FEDERAL RESERVE
DISTRICT.

The year 1916 has been one of general prosperity throughout this
district. Agricultural products have been in good volume, and high
prices have been realized. The barley crop which in 1915 had a total
estimated value of $37,000,000, has been about 90 per cent of an
average crop in 1916, but heavy eastern and export demand has
caused prices to rule at 60 to 70 cents per cental above the average.
The price has been so high that oats have been shipped in to substi
tute as feed.
The yield of wheat has been about normal. The estimated value
of the 1915 crop was $90,000,000.
In California, 248,000 acres were planted to beans, producing a crop
of 2,000,000 (80-pound) bags, having a value of $7,000,000 at this
year’s unusually high prices.
The cotton crop of the Imperial Valley in southeastern California
also realized about $7,000,000. The first cotton grown in California
was in 1909, 324 acres yielding 183 bales. In 1915, 40,000 acres were
planted and 98,000 acres in 1916. Because of the superior quality,
unusually high prices are realized, and the yield averages 426 pounds
per acre as against an average of 186 pounds for the entire United
States. It has been difficult to secure labor for picking, although
$1 per hundred pounds has been paid this year.
Sugar beets with an increase of 25 per cent in acreage have aver
aged $6 per ton in 1916 as against $5.40 in 1915. There are 32 sugar
factories in this district.
An embargo against the export of hops has caused low prices, ruling
from 9 to 12 cents. The yield in California, Oregon, and Washington
is reported as 254,000 bales. The average domestic consumption is
about 200,000 bales. About 90,000 bales of the 1916 crop have not
yet been sold.
The crop of prunes in California, estimated at 135,000,000 pounds,
has been about 20 per cent less than in 1915, while that of the North
west, estimated at 40,000,000 pounds, has been about 33$ per cent
greater. Prices have been unusually high, averaging 5|-5£ cents per

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

pound, and in spite of a smaller crop, probably $1,000,000 more has
been realized than in 1915.
For the year ending August 31, 1916, 44,473 carloads of citrus fruit
were shipped (37,230 of oranges and grapefruit and 7,243 oi lemons),
an increase of 6,700 cars over the preceding year. The value to grow
ers has been $41,000,000 as against $20,000,000 in 1915. For the
current citrus crop year, September 1, 1916, to August 31, 1917, the
first shipment of navel oranges was made from Fair Oaks, near Sacra
mento, Cal., to New Zealand on October 14. Citrus fruit ripens
from four to six weeks earlier in northern than in southern California,
because of higher night temperatures. At the close of the year the
larger part of the navel orange crop of northern and central California
had already been shipped, and shipments heavier than a year ago had
been made from southern California, totaling in value materially
more than the preceding year. Prices realized for the crop now
moving have been much higher than for the last crop. In California
205.000 acres are in citrus fruits, of which 130,000 acres are in bearing.
The Florida shipments are about one-third those of California.
The shipments of grapes and deciduous fruits in 1916 have been
exceedingly heavy and have yielded growers unprecedented returns—
18.000 carloads of cherries, apricots, peaches, plums, pears, grapes,
etc., have been shipped in 1916, compared with 16,778 in 1915, and
the net returns have aggregated about $18,000,000 ($1,000 per car
load).
Fruit canners have had a very prosperous year, and stocks in first
hands are now the smallest in many years.
This district produced 6,265,000 barrels of apples in 1916 (one-half
in Washington), compared with 5,834,000 in 1915. The quality i3
much better than usual. Only shortage of cars has prevented
growers from realizing extraordinary returns.
Live-stock interests have had very large returns because of unusual
prices. The wool clip Has been marketed at prices ranging from 26
to 32 cents per pound, with 40 cents offered for the coming year.
Lambs have sold in the Chicago market at $8 each with a freight rate
of 90 cents.
The salmon catch of 1916 is reported as 7,121,000 cases (of 48 onepound cans) which is above the average but less than in 1915 and
1913. The Alaska catch, 4,800,000 cases, is 300*000 cases above the
previous highest record. The value of the 1915 pack was $37,331,000.
While the estimated value for 1916 has not been obtained, it is mate
rially greater, as prices have ruled exceptionally high and stocks have
been almost sold out, especially of the better grades.
Petroleum production of California in 1916 has been 93,000,000
barrels valued at $49,000,000. This is an increase of 2,000,000
barrels, over 1915 but 10,000,000 barrels less than consumption.
These conditions have resulted in continued advances in price.

REPORT OE FEDERAL RESERVE BANfc OF SAN FRANCISCO.

The output of mines in this district, valued at more than $300,000,000
in 1915, has had far greater value in 1916. The figures for values of
1916 production of metals are not yet available, but the proportion of
increase over those of 1915 is suggested by the Government estimate
of $190,000,000 for the 1916 output of copper in Arizona, compared
with $80,000,000 for 1915. The price of copper is the highest since
the Civil War, averaging about 30J cents in December. High wages
are paid to miners, $13.50 per day being reported for Arizona. Cali
fornia ranks first in production of gold, Nevada first in silver and
third in gold and in copper, Arizona first in copper, Utah second in
copper and third in silver.
Shipbuilding on the Pacific coast has developed with great strides,
30 per cent of the total construction in the United States now being
carried forward at Pacific coast ports. In shipyards of San Fran
cisco, Portland, and Seattle 74 vessels are now under way, averaging
5,858 tons each, compared with 356 vessels averaging 3,050 tons each
elsewhere in the United States.
The Union Iron Works of San Francisco, which is now building
the largest ships, has under construction 2S vessels of an aggregate
tonnage of 175,028.
It is reported that the Japanese merchant marine has increased 50
per cent in the last six years, and that 500,000 gross tons of bottoms
have been started on Japanese stocks since January 31, 1916.
Charter rates reached their highest point during January and
February, 1916, about double those of a year before, and have
fluctuated but little since.
Exports from San Francisco in 1916 show a gain of 40 per cent
over 1915, and those from Seattle about 175 per cent. There have
been important shipments through Seattle to Russia.
Lumbering in the Pacific Northwest has shown improvement during
the year. On December 26 it was reported that there were in hand
unshipped orders aggregating 12,356 cars. The advances in price,
which have been considerable, have been largely offset by increases
in the cost of labor and of supplies, so that it is doubtful if the pro
ducers' margin has increased. There has been a great lack of bottoms
for off-shore shipment, so that it is the more surprising that the
demand for shipftient by rail to the interior has so fully absorbed the
cut, especially in view of the acute shortage of cars. It is expected
that transportation facilities will soon be better, partly from putting
into commission wooden vessels now building for this trade and
partly, by early spring, from a more adequate supply of cars. The
outlook for the coming year is regarded as distinctly more favorable.
Commerce with Alaska is steadily increasing, the large salmon
catch and large output of copper (amounting this year to $25,000,000)

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

being important factors. Indications point to a total trade with
Alaska during 1916 in excess of $100,000,000.
Bank clearings, building permits, and post-office receipts all show
important increases during the year.
The extent of the expansion in the volume of general business
in this district since the outbreak of the European war is well indi
cated by a comparison of the amount of loans and investments and
the amount of deposits of national banks on June 30, 1914, just before
the declarations of war, with those on corresponding dates in 1915
and 1916 and on November 17, 1916, as shown in Table 16.
On June 30, 1914, loans and investments were slightly more than
the total of deposits viz: 100.5 per cent. From that date to November
17, 1916, deposits increased 48.6 per cent, while loans and invest
ments increased only 21.9 per cent, then equaling 82.5 per cent of
deposits.
A condition reflected by an increase in deposits of national banks
in 2\ years from $576,000,000 to $857,000,000 could be only one of
general prosperity. A concurrent increase in loans and investments
relatively so moderate as that from $579,000,000 to $706,000,000
would seem to give warrant for the belief that, if a period of general
contraction shall follow the return of peace, this district, in which the
expansion has been moderate, will experience only moderate con
traction, developing in the orderly deliberate fashion in which the
expansion has developed.
T a b l e 1.

—Comparative yearly statement.
I

December 30; December 31,
1916.
1915.

ASSETS.
Bills discounted—members............................................................................... $250,968.05
Bills discounted—bought....................1........................................................... ! 12,462,265.95
United States bonds and notes.......... ............................................................ ! 3,133,750.00
Investments......................................................................................................'
737,376.13

$467,102. (>7
683,839.77
1,000,475.00
344,978.13

Total....................................................................................................... j 16,584,360.13

2,496,455.57

16,918.75
126.96
7.00

5,050.00

Interest accrued on United States bonds...................................
Accrued service charges—transit items......................................
Difference account.......................................................................
Furniture and equipment...........................................................
Cost, unissued Federal reserve notes........................................
Cost of Federal Reserve bank notes...........................................
Expense—organization.......... ....................................................
Due from other Federal Reserve Banks (collected funds)........
Transfer drafts purchased...........................................................
Exchanges for clearing house......................................................
Transit items...............................................................................
National bank notes and Federal Reserve notes—other banks.
Federal Reserve notes on.hand...................................................
Nickels and cents........................................................................
Mutilated currency forwarded for redemption..........................
Gold coin and gold certificates....................................................
Other lawful money.....................................................................
Gold settlement fund..................................................................
5 per cent redemption fund.........................................................

J
2,691,903.93
2,550,000.00
491,698.67
2,905,740.60
378,804.00
1,682,975.00
23.15
70,000.00
10,535,160.00
78,677.95
10,489,000.00

’

10, 000.00

6,422.59
34,914.91
300.00
52,358.44
1,894,866.87
2.040.000.00
187,568.09
15,640.04
10,500.00
1,237,980.00
3.52
*4,‘050,‘m 00
4,777.50
9.880.000.00

Total cash reserve................................................................................... 21,112,837.95 j 13,935,737.50
Total assets................................................................... : ....................... 48,485,396.14 j 21,917,797.53

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

T a b le 1.—Comparative yearly statement—Continued.
December 30, December 31,
1915.
1916.

LIABILITIES.
Capital paid in.................................................................................................. $3,929,300.00
Profit and loss.................................... .............................................................
15,416.87
33,188.52
Unearned discount....................'......................................................................
Unearned interest—investments......................................................................
2,306.76
Due to member banks...................................................................................... 37,852,375.89
Due to Federal Reserve Banks........................................................................
947,794.18
United States Government deposit...................................................... .......... 3,643,138.44
Deferred credits—other Federal Reserve Banks.............................................. 2,022,717.31
Cashiers* checks outstanding...........................................................................
189.30
Expense checks.......i .......................................................................................
7,573.62
Dividend checks...............................................................................................
31,395.25
Withheld for Federal income tax....................................................................

$3,941,800.00

Total liabilities........................................................................................ 48,485,396.14

21,917,797.53

4,740.44
1,628.13
17,509,724.63
10,541.09
427,321.10
15,346.84
6,485.30
210.00

T a b le 2. —Earnings, expenses, and dividends.

Balance, profit and loss, Jan. 1, 1916..........................................................1$11,458. 60
Gross earnings, year 1916......... ................................................................... 316,450.10
Current expenses................................................................... $142,337. 64
Organization expense............................................................. 45,085. 09
Cost of engraving, printing, and shipping Federal Reserve
notes..................................................................................... 56,804. 69
Furniture and equipment..................................................... 12,589. 59
Cost of engraving plates for Federal Reserve bank notes...
480. 00
---------------- 257,297.01
Net earnings for the year 1916.......................................................... 59,153. 09
Oct. 1, 1916, dividend No. l,at 6 per cent per annum from
Nov. 16, 1914, to Dec. 31, 1914........................................... 12,340.97
Dec. 31,1916, dividend No. 2, at 6 per cent per annum from
Jan. 1, 1915, to Mar. 31, 1915.......... ................................ 31,395. 25
---------------- 43,736. 22
Balance, profit and loss. Dec. 31, 1916............................................. 15,416. 87
T a b l e 3.—Earnings of the Federal Reserve Bank of San Francisco for the year 1916.
Earnings from:
Bills discounted—member banks........................................ ................. $20,682.97
Bills bought in the open market............................................................ 133,331.07
United States bonds.............................................................................. 67,529. 54
Municipal warrants.............................................................................. 49,772. 61
Premium on bonds......................................................................................... 14,487.50
Transfer charges interdistrict............................................................... ......... 18, 200.00
Service charges collected..................................*.......................................... 7,660. 26
Sundry profits................................................................................................ 4,786.15
Total earnings....................................... ............................................. 316,450.10

i Deficit; charged to organization expense.

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

T a b le

3a.—Expenditures of the Federal Reserve Bank of San Francisco, Jan. 1, 1916Dec. 31, 1916.
1. CURRENT EXPENSES.

Federal Reserve Board assessment for general expenses............................ $13,785. 82
150.00
Federal advisory council (fees and expenses)........................... .................
Legal fees.................................................................................................... 2,420.67
Directors’ fees............................. ................................................................. 1,850.00
Salaries:
Bank officers......................................................... ......... $41,208. 35
Clerical staff......................................................................... 33,553.05
Special officers and watchmen...........................................
123.00
Total.................................................................................................... 74,884. 40
Traveling expenses, officers and clerks:
Federal Reserve Agents’ conferences................................ 1,043.92
2,965. 79
Governors’ conferences...................................... ...........
Within twelfth district................ ...................................... 1,164. 37
Total.................................................................................................... 5,174.08.
Per diem allowance of directors............................ .................. . .................
400.00
Telephone......................................................................................................
465.98
Telegraph.................................................................................................. .
507.05
Postage............................... ......... ............................................................... 4,786.48
Expressage................................................................ .................................... 7,595.36
Rent..................... ............ .......................................................................... 11,731.50
Insurance and premiums on fidelity bonds................................................. 1, 226. 54
Light, heat, and power.......................................... ....................................
432. 27
Printing and stationery................................................................................ 8,472.17
Repairs and alterations............................................................................... . 5,132.99
All other expenses, not elsewhere specified................................................. 3,322.33
Total current expenses................................................... .................. 142,337. 64
2. ORGANIZATION EXPENSES.

San Francisco clearing-house membership............................... $1,000. 00
Alterations ‘to banking quarters................................................ 1,568.05
Traveling expenses, October conference, 1914, nine directors
and governor........................................................................... 4,607. 00
Express on coin and currency in connection with initial pay
ments of capital stock and reserve........................................ 6,682.09
Assessments of Federal Reserve Board..................................... 13,817.08
Stationery (ordered by Federal Reserve Board)..................... 5,952. 27
Total (carried from current expenses, account expenses
prior to Nov. 16, 1914)................................................ 33,626.49
Deficit in earnings for year 1915............................................. . 11,458.60
Total..................................................................................................... 45,085.09
3. COST OP FEDERAL RESERVE NOTES.

Cost of manufacturing Federal Reserve notes amounting to
$62,160,000.............................................................................. $45,954.48
Transportation, etc., on new notes.......................................... 9,869. 50
Sundry costs...............................................................................
980. 71
Total................................................... ................................................ 56,804.69

REPORT OP FEDERAL RESERVE BANK OP SAN FRANCISCO.
4. COST OP FEDERAL RESERVE BANK NOTES.

$480.00

Cost of engraving plates for Federal Reserve bank notes............................
5. EQUIPMENT.

Furniture and fixtures................................................................ $1,054.09
Vaults..............................................................................................................
Safes.............................................................................................
600.00
Machines, typewriters, etc......................................................... 10,935. 50
Total................................................................................................... 12,589.59
Total expenditures................... .......................................................... 257,297.01
T a b le 4. —Fluctuations in the discount rates of the Federal Reserve Bank of San

Francisco.

Effective.

Matu Matu
rities rities
over
of 10 of to
30
days 10
days,
and
inclu
less.
sive.

Jan. 1,1916.............
Feb. 24.1916..........
Sept. 28,1916..........

3
3
3

Matu
rities
of over
30 to 60
days,
inclu
sive.

Matu
rities
of over
60 to 90
days,
inclu
sive.

4
4
4

3*
34
3|

Trade acceptances.
Agri
cultural
and
live
30 To 60 Over
stock To
to 90
days,
days, 60
paper inclu
days,
over 90 sive. inclu
inclu
sive.
days.
sive.
6
5£
5*

4
4

3
3
3

3&
3£
3£

Com
modity
paper
matur
ing
within
90 days.

Member
banks,
collat
eral
loans.

(1)
(O
<•>

i Rate for commodity paper maturing within 30 days, 3£ per cent; over 30 to 60 days, 4 per cent; over
60 to 90 days, 4| per cent; over 90 days, 5 per cent.

N ote.—Rate for bankers’ acceptances, 2 to 4 per cent.

T a b le 5.— Volume and classification of rediscounts, Jan. 1, 1916, to Dec. SI , 1916.
Arizona.

California.

Idaho.

Nevada.

Classifications.
Pieces. Amount. ■Pieces. Amount. Pieces. Amount. Pieces. Amount.
Agriculture...................................
Live stock....................................
Grain, flour, feed..........................
Fruit packers and shippers..........
Meat and fish packers..................
Lumber.........................................
Manufacturing.............................
Wholesale merchandise...............
Retail merchandise......................
Miscellaneous...............................

....... 1...........
T !

Total rediscounts, 1916.......

782 1.263.221
7
7

}

Total number of banks re
discounting to date..........

563 $663,776
14
28,709
15,822
4
32 j; 126,124
2
4,017
8
17,676
19
57,194
2
5,000
98
203,493
40
141,410

87
16
1

$69,011
29,113
7,000

3,000

10
1

15,384
412

116

123,920

106

Oregon.

Utah.

Washington.

Totals by
classifications.

Classifications.

Pieces. Amount. Pieces. Amount. Pieces. Amount. Pieces. Amount.
Agriculture...................................
Live stock....................................
Grain, flour, feed..........................
Fruit packers and shippers..........
Meat and fish packers..............
Lumber.........................................
Manufacturing.............................
Wholesale merchandise...............
Retail merchandise.....................
Miscellaneous...............................
Total rediscounts, 1916 .
Total number of banks re
discounting to date..........

31
33
11
3
3
13
2

$41,357
79,772
13,239
16,530
60,050
63,416
7,952

32
1

86,255
1,886

129

370,457
35

1
2

$3,410
2,573

5,983
3

35,000
5,000
39,311
20,000

736
65
30
35
5
22
28
3
154
43

$852,648
140,167
71,430
142,634
64,067
84,092
100,146
10,000
344,443
163,708

209,774

1,121

1,973,355

$75,094

35,369

7
1
14
1
91

188

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.
T able 6. —Acceptances purchased during 1916.
January.

February.

Acceptances in the for
eign trade:
Member banks......... $122,738.75
Nonmember banks.. 200,208.44
Commercial accept
ors .........................
Total.....................
July.

322,947.19

March.

May.

April.

$62,466.76 $137,798.78
370,262.53 328,182.79

$293,682.42
756,110.43

June.

1
$331,020.60j $1,426,349.07
1,225,955.51
666,610.43

124,789.50

100,313.67

138,205.80

430,230.99i 1,897,687.00

557,518.79

566,295.24

1,187,998.65

1,987,207. loj 3,990,646.50

August.

September.

October.

November. December.

Total.

Acceptances in
the foreign
trade:
M em ber
banks___ $1,552,111.47 $529,726.67 $739,090.54 $2,232,538.27 $861,309.63 $1,732,385.67 $10,021,218.63
Nonmember
banks___ 892,046.86 1,080,859.60 1,599,194.16 2,650,930.67 1,687,531.43 2,556,119.54 14 014,012.39
Commercial
acceptors. 1,027,113.76 965,149.65 203,515.23 928,601. 731, 401,947.33 1,255,834.OOj 8,473,388.66
Domestic a c
67,058.22;
67,058.22
ceptances.......

200 000.00

Total....... 3,471,272.09 2,575,735.92^2,541,799.93^6,012,070.67 3,950,788.39 5,611,397.43j 32,775,677.90

Table 7.— United States bonds and notes purchased from member banks and in the open
market and sold during 1916.
Ma
turity.

Basis. •Par value. Carried at.

Bate.

Per ct.

On hand Jan. 1,1916...................................

Total.

$1,010,000

PURCHASED.
United States consols of 1930 purchased in
open market.............................................
United States consols of 1930 purchased
from member banks.................................

1930

2.005 '

$25,000

Par. i 2,598,000

2,598,750

Purchased during 1916......................

2,623,750

..... i.........

Total purchases to date.....................
N o t e .— Of these, $1,000,000were exchanged
for—
3 per cent 1-year gold notes —
$500,000
3 per cent 30-year gold bonds.. 500,000

1,000,000

SOLD.
United States 3 percent 30-year conversion
bonds........................................................

1946

!
!
!

3,133,750
j
|

1............ 1.............
......................... I...................

....................

500,000
500,000

Total on hand Dec. 31,1916...............

101 j..................

Sold during 1916................................

As follows:
United States 2 per cent consols, 1930 .
United States 3 per cent 1-year gold
notes...................................................

3,633,750

2,633,750
500,000
3,133,750

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.
T a b l e 8.—

Municipal warrants purchased during the year 1916.

Rates.
•2.1 to 2. 125 per cen t...
2.126 to 2.25 percent...
2.251 to 2.375 per cent..
2.376 to 2.5 per cent...
2.501 to 2.625 per cent.
2.626 to 2.75 per cent...
2.751 to 2.875 per cent.
2.876 to 3 per cent.......
3.001 to 3.125 per cent.,
3.126 to 3.25 per cent..
3.251 to 3.375 per cent.
3.376 to 3.5 per cent....
3.501 to 3.625 percent..
3.S76 to 4per cent........
Total..............................

Rates.

2.1 to 2. 125 per cent...
2.126 to 2.25 per cent..
2.251 to 2.375 per cent.
2.376 to 2.5 per cent...
2.501 to 2.625 per cent.
2.626 to 2.75 per cent..
2.751 to 2.875 per cent.
2.876 to 3 per cent......
3.001 to 3*.125 per cent.
3.126 to 3.25 percent..
3.251 to 3.375 per cent.
3.376 to 3.5 per cent...
3.501 to 3.625 per cent.
3.876 to 4 per cent......

California.1 Connecti
cut.

$7,175.00

Massachu
setts.

Rhode
Island.

$25,177.08
25,253.39

70,846.75

New York.

Maine.

$75,000.00
$178,253.89
202,500.28
200,797,80
125,372.20

2,625.00

100, 000.00

$412,610.90
524,541.78
391,536.87
1,090,478.74
421,316.81
332,407.39
40,677.44
125,742.23

70,352.70
25.000.00
85.000.00 $100, 000.00
26,525.77
80,646.75

50,431.47

New
Jersey.
$25,062.50
35,353.64
328,984.17
20,301.67

987,276.87

Virginia.

100,000.00

| Mississippi.

$250,000.00 j.

126,737.50
'62,026*68
$194,294.76

204,'666."66‘

Total......................................... 802,466.16 ]

250,000.00

194,294.76

75,000.00

Utah.

%365,837.93
Total.

$462, 850.48
842, 323.81
795, 521.04
1,359, 881.05
623, 817.09
533, 205.19
166, 049.64
228, 367.23
197, 090.20
25, 000.00
247, 026.68
194, 294.76
230, 525.77
$56,668.20 ;
56, 668.20
56,668.20

5,962,621.14

i Bonds maturing within 6 months, having accumulated sinking funds.

Table 9.—Reserve at the beginning of each month, counting as gold Federal Reserve notes
held by the bank.

Date.
1916.
Jan. 3.......................
Feb. 1......................
Mar. 1......................
Apr. 1......................
May 1.......................
June 1......................
July 1.......................

Amount of
reserve.

$15,397,748.60
15,889,802.10
13.338.019.40
14.633.895.40
11,951,335.90
17,725,521.85
17,442,282.15

Date:

Amount of
reserve.

1916,
Aug. 1.....................
Sept. 1....................
Oct. 2......................
Nov. 1....................
Dec. 1.....................

$15,571,998.90
13,458,719.25
16,784,935.50
15,739,094.30
16,553,832.15

Average........

15,373,932.12

Table 10.—Deposit of the Treasurer of the United States at the beginning of each month
hiring 1916.
Date.
1916.
Jan. 3.......................
F e b .1.......................
Mar. 1.......................
Apr. 1.......................
May 1.......................
June 1......................
July 1.......................

Amount of
deposit.

$522,965.79
872,810.67
1.240.562.45
1,432,859.63
1.723.892.46
2,190,104.02
5,230,131.11

Date.

Amount of

1916.
Aug. 1...............................................
Sept. 1..............................................
Oct. 2................................................
Nov. 1...............................................
Dec. 1................................................

$3,121,955.45
4,027,060.55
2,857,018.60
2,762,431.00
2,691,720.87

Average..................................

2,391,959.38

REPORT OP FEDERAL RESERVE BANK OF SAN FRANCISCO.

T able I I . —Gold settlement fund—Tabulation of transfers for calendar year 1916.
[000's omitted.]
Net.
We debit We credit
gold
debit We credit
settlement settlement Wegold
gold
fund.
fund.
settlement settlement
fund.
fund.

For account of—

Boston:
Special transfers.........................................................
Settlements................................................................
New York:
Special transfers.........................................................
Settlements...;.........................................................
Philadelphia.....................................................................
Cleveland..........................................................................
Richmond........................................................................
Atlanta:
Special transfers.........................................................
Settlements...................................................... ; ........
Chicago.............................................................................
St. Louis:
Special transfers.........................................................
Settlements................................................................
Minneapolis.......................................................................
Kansas City.'.. : ................................................................
Dallas:
Special transfers.........................................................
Settlements.. 1...........................................................
Federal Reserve Agent....................................................
Gold deposited through assistant treasurer of United
States, San Francisco...................................................
Miscellaneous...................................................................
Total..................................................... .................

T a b le

$1,385

$6,258

103,871
33
221
30

19,035
8,841
4,119
1,029

347
10,807

1,415
21,796

1,068
10,989

564
1,084
922

6,718
1,528
11,295

6,154
444
10,373

696
3,820

747
12,840

51
9,020

3,100

26,480
4,170

23,380
4,170

126,880

126,271

$4,873
$84,836

8,808
3,898
999

84,836

84,227

12.—Federal Reserve notes issued and Redeemed by Federal Reserve Agent during

1916.

Fives.
Outstanding Dec. 31,1915.......
Issued during 1916.................... $3,280,000
Returned by the bank............
Unfit notes redeemed..............

1,800,000
958,110

Tens.

Twenties.

$1,840,000

$3,520,000

1,000,000
444,200

266,400

Fifties.

1|Hundreds. j!
•

| 86.450,000
$1,400,000 $2,800,000 | 12,840,000
i9,900 |

Total redeemed..............

26,300

2,800,000
1.708,910
4,508,910

Net issued during 1916
Outstanding Dec. 31,
1916..............................

Total.

!
i
i

| 8,331,090
!
14,781,090

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.
T a b le

13.—Q<m\ ison of deposits and of loans and discounts of National Banks of the
twelfth leral Reserve district on Nov. 10,1915, and Nov. 17,1916.
DEPOSITS.

Nov. 17,1916. Nov. 10,1915.

Increase,

Per cent
increase.

Banks in reserve cities:
Los Angeles................
San Francisco.............
Portland.....................
Salt Lake City............
Seattle.........................
Spokane......................
Tacoma.......................

$89,705,000
248,689,000
55.521.000
28.612.000
52.833.000
28.613.000
9,216,000

$73,884,000
196,227,000
42.273.000
20.451.000
42.480.000
20.446.000
7,491,000

$15,821,000
52.462.000
13.248.000
8,161,000
10.353.000
8.167.000
1.725.000

21.4
26.7
31.3
39.9
24.3
39.9
23.0

Total........................

513,189,000

403,252,000

109,937,000

27.2

188,000
7,585,000
522.800.000
37.898.000
10.595.000
96.852.000
42.797.000
138.466.000

97,000
5.775.000
416.468.000
28.472.000
7.616.000
73.899.000
31.557.000
104.199.000

91,000
1,810,000
106,332,000
9.426.000
2.979.000
22.953.000
11.240.000
34.267.000

94.0
31.4
25.5
33.1
39.1
31.1
35.6
32.8

857,181,000 j 668,083,000

189,098,000

28.3

Banks not in reserve cities:
Alaska.........................
Arizona.......................
California....................
Idaho..........................
Nevada.......................
Oregon........................
U ta h .................................

Washington................
Total........................

LOANS AND DISCOUNTS.
Banks in reserve cities:
Los Angeles................
San Francisco.............
Portland.....................
Salt Lake City............
Seattle.........................
Spokane......................
Tacoma.......................

$58,666,000
156,557.000
31.105.000
15.350.000
28.915.000
17.379.000
5,208,000

$48,402,000
114,888,000
24.992.000
12.328.000
22.887.000
12.682.000
4,524,000

$10,264,000
41,669,000
6.113.000
3.022.000
6.028.000
4,697,000
684,000

21.2
36.2
24.4
24.5
26.3
.27.3
15.1

Total........................

313,180,000

240,703,000

72,477,000

30.1

Washington................

46,000
4.582.000
339,600,000
22.950.000
6.178.000
58.431.000
24.067.000
82.235.000

25,000
4.030.000
272,624,000
19.123.000
5.183.000
50.194.000
19.782.000
66.655.000

21,000
552.000
66.976.000
3.827.000
695.000
8.237.000
4.285.000
15.580.000

84.0
13.7
24.5
20.0
12.7
16.4
21.2
23.4

Total........................

538.089,000

437,916,000

100,173,000

22. S

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.

Table 14.—Reserve in vault just prior to establishment of Federal Reserve System and
reserve in vault combined with deposit in Federal Reserve Bank at present.
Reserve in
vault Oct.
31,1914.

Reserve in
vault and
Per cent deposit
Per cent
of total Federalwith
Re of total
deposits. serve Bank
deposits.
Sept. 12,1916.

Banks in reserve cities:
LiOs Angelas. r- - - ........ .............. .......................
$7,404,000
San Francisco.......................................................
20; 048,000
Portland....... r- 1Tr- .................................................
6.301.000
Salt Lake City................................................... .
1.634.000
Seattle....... .................................................................
6.083.000
Spokane................................................................. . }• 2,056,000
Tacoma....................................................................... j
1,197,000

14.9
15.1
18.8
12.9
18.7
14.2
19.1

$11,471,000
20,756,000
4.957.000
1.788.000
5.112.000
2.193.000
1.057.000

16.6
11.0
12.6
8.7
12.7
10.8
13.6

44,723,000

15.8

47,334,000

12.2

Washington................................................................

186,000
973.000
9.847.000
1.961.000
590.000
2.803.000
566.000
2.562.000

19.1
10.6
7.9
9.6
9.4
9.4
7.0
8.2

94,000
1.596.000
16,262,000
2.678.000
913.000
3.514.000
824.000
3.388.000

57.3
10.9
9.9.
8.9
9.7
10.1
7.3
8.7

Total...................................................................*.. !
Banks not in reserve cities:
Alaska........................................................................
Arizona.......................................................................
California....................................................................
Idaho:........................................................................
Nevada.......................................................................
Oregon........................................................................

TTtfin ,., ...............................................................

T otal.......................................................................

19,488,000

8.4

29,269,000

9.4

Total banks:
Alaska........................................................................
Arizona.........................................*.............................
California....................................................................
Idaho..........................................................................
Nevada.......................................................................
Oregon........................................................................
Utah............. ; ............................................................
Washington................................................................

186,000
973.000
37.299.000
1.961.000
590.000
9.104.000
2.200.000
11.898.000

19.1
10.6
12.1
9.6
9.4
14.1
10.6
14.1

361.000
1.596.000
48.489.000
2.678.000
913.000
8.471.000
2.612.000
11.750.000

19.4
10.9
11.8
8.9
9.7
11.4
8.8
11.7

T o t a l ...................................................................

64,211,000

12.5

76,870,000

11.4

Table 15.—Check collection—Interdistrict transaction July 15-Dec. S1, 1916.
[000’s omitted.]

Incoming
cash let
ters from
and for
account
of other
Federal
Reserve
Banks.

Deduct
cash let
ters sent
by this
bank to
other
districts.

Deduct cash
letters sent
Deduct
by member Net ex
Net
banks this
cess of Transfers transfers
pur
district
transfers
incoming
direct to
sold.
chased
pur
cash
other Federal letters.
. by this
chased.
bank. I
Reserve.
Banks for
our

July............................
August.......................
September..................
October......................
November................................... j
December...................|

$3,984
7,952
12,139
14,400
15,506
15,185

$144
339
1,016
493
626
757

$226
1,146
1,278
503

$3,870
7,613
10,897
12,761
13,602
13,925

$2,400
100
300
40
2,500
45

69,166

3,375

3,153

62,668

5,385

$2,551
11,220
15,550
11,735
23,690
22,700 1

$151
11,120
15,250
11,695
21,190
22,655

87,446

82,061

Memo.—Net increase in member banks* deposits for same period (000 omitted): July, $626; August, $590;
September, $1,544; October, $1,969; November, $7,514; December, $1,150. Total increase, $13,393.

BEPOBT OF FEDERAL RESERVE BANK OF SAN FBANCISCO.

Table 16.—Comparison of loans, investments, and deposits on June SO, 1914, with
those on (responding dates in 1915 and 1916 and on Nov. 17, 1916.
LOANS AND INVESTMENTS.

Date of call.

Amounts.

Per cent Per cent
of loans increase Per cent
and
increase
over
invest
over
preced- * June
30,
ments
ing
1914.
to de
figure.
posits.

June 30,1914:
Loans................................................................................ $439,092,000
Bonds, etc........................................................................ 140.723.000
579.815.000
June 23,1915:
Loans................................................................................
Bonds, etc........................................................................

440.555.000
147.650.000
588.205.000

June 30,1916:
Loans................................................................................
Bonds, etc........................................................................

100.1

1.5

91.7

8.8

10.4

82.5

10.5

21.9

482.570.000
157.255.000
639.825.000

Nov. 17,1916:
Loans................................................................................
Bonds, etc........................................................................

100.5

538.092.000
168.857.000
706.949.000

DEPOSITS.

Date of call.

Amounts.

June 30,1914........................................................................... $576,852,000
June 23,1915............................................ .............................. 587.678.000
June 30,1916........................................................................... 698.620.000
Nov. 17,1916........................................................................... 857.181.000

Per cent
ofde-*
posits
to loans
and
invest
ments.
99.5
99.9
108.3
121.2

Per cent
of in
Per cent
crease included
over
over
preced June 30,
ing
1914.
figure.

1.9
18.9
22.7

i.»

21.1
48.6-

REPORT OF FEDERAL RESERVE BANK OF SAN FRANCISCO.
E x h ibit

A.—Banking power of the twelfth district.
[OOO’s omitted.]

Arizona.

State.................. .......

Supervision............... National.
Number of banks___

California.

State.1 National.

Date of report (1916).. Nov. 17.

Nov. 17.

Idaho.

Nevada.

State.

National.

State.

National.

State.

462

130

265

Nov. 17. Aug, 31.

Nov. 17. Sept. 12.

Nov. 17. June 30.

ASSETS.
Loans and discounts..
Stocks, bonds, and
other securities.......
Banking house, fur
niture and fixtures.
Cash and exchange...
Other assets...............

$4,582

$339,600

$499,111

$22,950

$20,351

$6,178

$8,752

1,361

Total................

$21,W
3,502

102,090

152,099

6,493

1,288

2,579

1,254

304
3,159
57

1,456
16,261
426

13,430
208,786
15,025

27,430
147,716
9,362

1,251
15,512
438

1,225
8,932
606

373
4,470
104

404
4,275
383

9,463

43,532

678,931

835,718

46,644

32,402

13,704

15,068

650

2,868

58,623

64,610'

3,600

3,588

1,435

1,694

636
616

2.220

A
38.299
A

46,246
138,522

42,155
13,137

2,180
5,443

1,284
1,092

433
1,284

685
142

318,344
65,934

710,939

25,177
7,278

18,436
7,459

7,553
1,758

6,731
5,710

464

533

408

4,344
835,718

LIABILITIES.
Capital.......................
Surplus and undi
vided profits..........
Due to banks .........
Deposits:
Demand -............
Time....................
R ed iscou n ts and
money borrowed...
Circulation outstand
ing...........................
Other liabilities.........

6,573
396

544

3 145

39,945
10,853

Total................

9,463

43,532

678,931

48 I

Supervision............... National.
82

Number of banks___

Date of report (1916).. Nov. 17.

2,936
46,644

Utah.

Oregon.

State..........................

135

1,230
11

106

32,402

13,704

15,068

Washington.

Total district.

State.

National.

State.

National.

State.

National.

State.

177

279

520

1,220

Nov. 17. Nov. 17. i Sept. 21.

Nov. 17.

Nov 17

ASSETS.
Loans and discounts..
Stocks, bonds, and
other securities.......
Banking house, fur
niture and fixtures.
Cash an4 exchange...
Other assets............

$58,431

$42,635

$24,067

$45,021

$82,238

$84,816

$538,046

$722,573

19,794

8,409

7,465

5,208

29,064

20,987

168,846

192,747

2,650
36,779
1,807

1,860
23,384
1,880

1,510
18,361
148

1,544
14,477
1,963

3,027
48,235
1,901

6,715
40,559
6,528

22,545
335,302
19,480

40,634
255,604
21,148

Total................

119,461

78,168

51,551

68,213

164,465

159,605 1,084,219

1,232.706

10,066

6,893

11,760

15,848

89,489

104,225

3.555
4.461 !

6.749
24.665

8,872
11,545

64,704
201,601

63,211
36,884

75,950
37,851

64,961
56,826

513,530
141,862

897,156
110,008

773

826

4,661

780

60,311
11,896

16,561

159,605 1,084,219

1,232,706

LIABILITIES.
Capital.......................
Surplus and undi
vided profits..........
Due to banks............
Deposits:
Demand..............
Time...................
Rediscounts
and
money borrowed...
Circulation outstand
ing...........................
Other liabilities.........

8,724

3,355

6,270
17,817

4,440
6,507

2,190
13,254

58,493
20,542

35,324
19,931

21,440
8,103

2,947

235

5,973
243

295

3,134
35

6,549
706

Total................

119,461

78,168

51,551

22,466
20,082

10,756

68,213 i 164,465

1 Includes 4 counties in the Eleventh Federal Reserve District.
2 Included in demand deposits.
» Includes rediscounts and money borrowed.

REPORT OP FEDERAL RESERVE BANK OF SAN FRANCISCO.
E xhibit B . —Bank clearings of principal cities in

twelfth district.

[000,000 omitted.]
1912

1911

22
Bakersfield...............................................
Fresno....................................................... P) 40
51.
Long Beach................................................ (2)
943 1,169
Los Angeles...............................................
173 1 223
Oakland.....................................................
42
Pasadena...................................................
47
Sacramento................................................
78 !
93
San Diego..................................................
83 i 132
San Francisco............................................ 2,427 ! 2,678
San Jose...................................................
30
36
Santa Rosa................................................
Stockton................................................... ..............
45
40 1,
Reno..........................................................
15
Portland....................................................
557 ; 596
Salt Lake City...........................................
369
602
Seattle.......................................................
553
225
Spokane.....................................................
Tacoma......................................................
139
Total................................................ 4,966 6,442
*Organized 1912.

1913

1914

1915

24
57
1,211
189
48
108
134
2,624
36
46
15
628
333
665
219
133
6,470

24
53
17
1,145
176
44
103
103
2,516
36
13
47
14
577
315
628
203
110
6,124

20
54
26
1,048
181
44
101
100
2,694
35
12
50
15
554
350
612
193
99
6,188

First 11
months
1916.
25
61
28*
1,155
201
45*
113
103
3,123
40
11
64
lfr
589
449
714
228
104
7,072

2 Organized 1914.

E x h ib it 0 . —Applications under Kern amendment to the Clayton Act.

Arizona........................................................................................................
California.....................................................................................................
Idaho...........................................................................................................
Nevada........................................................................................................
Oregon....................................................................................................
Utah.................................................................................................. .........
Washington.................................................................................................
Total.......................................................................................... ........

1|
tions Granted. jRefused.
made.
1
i
0
0
0
1132
1102
3
0
0
0
0
7
7
0
14
31
17
3o
36
168
7
175

Applicar

State.

Full text of Annual Report of the Federal Reserve Bank of San Francisco : Second Annual Report of the Federal Reserve Bank of San Francisco for the Year Ended December 31, 1916

FRASER