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The Papers of Charles Hamlin (mss24661) 360_07_001- Hamlin, Charles S., Scrap Book — Volume 170, FRBoard Members 205.001 - Hamlin Charles S Scrap Book - Volume 170 FRBolrd Members ID BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence To The Files From Mr. Coe Date July 9, 1941 Subject: NP.L. After correspondence with Mrs. Hamlin (see letters of May 25 and June 4, 1941) the items attached hereto and listed below, because of their possible confidential character, were taken from volume 170 of Ir. Hamlin's scrap book and placed in the Board's files: VOLUME 170 Page 7 Report by Proft. Sprague at conference held by Gov. Crissinger, Mr. Hamlin, Mr. James and Col. McIntosh. Page 9 Memo from Mr. Smead to Mr. Platt re Location of State bank and trust company members of the Federal Reserve System. Page 11 Memo from Mr. Smead to Mr. Eddy attaching statements re cost of land and buildings at Richmond and Baltimore. Page. 37 Memo to Board from Mr. Smead re Branches of member and nonmember banks, December 31, 1926. Page 57 Memo to Mr. Hamlin from Mr. Goldenweiser re Status of gold standard in certain countries. Page 61 Memo to Mr. Hamlin from Mr. Goldenweiser transmitting a memo showing that the statement in the New York Times that Canada had prohibited exports to the U.S. was a mistake. Page 87 Letter to all Federal Reserve Agents re Condition of member banks as of March 23, 1927. Page 94 Memo to Mr. Hamlin from Mr. Vest re Earmarked Gold in Bank of England as Part of Reserve of F.R. Banks. Page 99 Preliminary memorandum relative to open market policy. Page 101 Earnings and Expenses of F.R. Banks. Page 141 Letter to Rep. McFadden re chain banking. Page 145 Letter to Chairmen of all F.R. Banks re Increase in Operating Efficiency at F.R. Banks. • -• FEDEI-ML ' Report by Professor Sprague at informal) conference held July 24, 1925: ---- Present: 4' it •1' Governor Cfissinger 11-r. Hamlin Mr. James Col. McIntosh // ry largely on.'banks which ae Lank explainers, are exceedan unsatisfactory condition ier .; signal months and years before 'Cho bankz go under. In atterant- .o br44g aboV. any . remfies I. think it is well to constantly hear in *lac that th'erc: has 'ue.e.44pLt a very ;moll larger of failures in sir.:ce 1921 tn we r;:.re yAry likely to exnerience in the future, this at least ln our no. time.. I do not • tixt*::we have need to feel that the si 1144ion is Ite,tb04 recrteres 4stic measures necessarily. •Bearin- that in mind, and also the necessity of avoiding as far as possible measures which would harler a well managed. ban::, I am at ---,resent inclined to ure a Grou? of nronosals which I - can run over very ranidly. First, it seems pretty clear that we have a very lr.rL;e grou-' of small La.iks that are so 5:nail, not merely in coital but in resources, that they sim)1j-- cannot ma'm a living and set aside any annreciable amounts of idoney to team care ot.losses, this oven, in the event that they are well Llanagd, atts :1,1y generally assume that the smaller groan of banks cannot very well pe well managed, they si.anly have not 7ct the business exncrience back of the,A, or the vnortunity for diversification of loans. ,e are 1..- avinL: some data prepared trying to determine the size of a bank- 'which iaynresu_la• bly e4pn,e, Miether a bank has to have $203,000 of loans and invest420nt3, er'morr4ess, th,:re must be some figure at which banks are too tlphet ei***5:-Profitable 'or sfe. VoLume 170 Page 7 I think without that we can reach WI3 FEDERAL RESERVE BOARD FILE I have been concentrating my attention very largely on banks which have failed, and I find that the reports of the bank examiners are exceedingly enlightening. In general, they indicate an unsatisfactory condition or danger signal months and years before the banks go under. In attempt- ing to bring about any remfaies I think it is well to constantly bear in mind that there has been no doubt a very zuch larger number of failures in this neriod since 1921 than we are very likely to experience in the future, at least in our life time. I do not think we have need to feel that the sit- uation is one that requires drastic measures necessarily. Bearing that in mind, and also the necessity of avoiding as far as .possible measures which would hamper a well managed bank, I am at present inclined to urge a groun of proposals which I can run over very rapidly. First, it seems pretty clear that we have a very large groun of small I banks that are so smail, not merely in capital but in resources, that they simply cannot ma'.!:e a living and set aside any appreciable amounts of money to take care of losses, this even in the event that they are well managed, and one may generally assume that the smaller group of banks cannot very well be well managed, they simnly have not got the business exnerience back of them, or the opnortunity for diversification of loans. e are having some data prepared trying to determine the size of a bank which may nresuma• bly earn a living. 7hether a bank has to have $200,000 of loans and investments, or more or less, there must be some figure at which banks are too small to be either profitable or safe. Volume 170 Page 7 I think without that we can reach -2no conclusion, nothing which would be reliable in the authorization of new charters. Then we can inquire into the prosnects of developing a profitable volume of business. We might apply it to the nroblem of the amount of capital required to organize, a bank, possibly restoring the original requirement of the national law of $50,000. into account the higher When one takes rices and growth of wealth in the country and the ease of communication, it would seem reasonable to conclude that the $50,000 bank would be no more difficult to organize than the $25,000 banlc was in 1900. We, of course, cannot demand that the $25,000 banks come up to $50,000 at once, althouzh I think the requirement might be inserted that any bank - any small bank of mall canitalization - with deposits of say ten times the capital would be expected at once to increase its capital investment, but I should not want to go further than that as regards the existing banks that have capital under $50,000. The next grou7o of proposals that I have in mind ielate to the effectiveness of examinations. The examinations, it seems to me, indicate certain very clear deficiencies, not as regards the quality of the examinations, but arising out of the enormous number of cases in which you find there are affiliations between state and national institutions, or by means of affiliateu companies. The most striking case is the Bell banks, in which a trust company owned 3% of the stock of one of the national banks. The trust com- pany was not a member and consequently the national bank examiners did not show the real situation. The bank examiner might as well have examined one- half of the assets of a national bank and then gone home. I am suggesting that along the line of the Clayton Act for interlocking directors, we might perhaps apply that principle a little in the matter of safe-guardinc the deposits by requiring that as a qualification for directorship on two or -3.. more banks, state and national, that the state institution must file copies of the state examinations with the Comptroller of the Currency as a condition of the uirector serving on the national bank as well as the state institution. This matter of affiliated banks is somethirg to which very little attention has been given in connection with the discussion of branch banking. to my mind the most injurious sort of branch banking that exists. This is From the point of view of safety in a branch banking system you want a central offkce with more or less records in the office as to what is going on in all the offices. In affiliated cases you have nothing. There are the affiliated finance companies that are not banks nroper, but which feed assets into one or another banks in the chain and you need to know about these concerns. This you see is for the purpose of securing information, but as regards the use of the information, assuming you find you have adecuate information, A great many banks seem to be formed by people with the object of securing a larger amount of accommodation than that they would be able to secure if connected with a going bank. A sound principle would seem to me would be for officers and directors to borrow less frequently from their banks than outside business might be disposed to do. A very large proportion of failed banks and banks in a weakened condition that have not failed show clear evidence of undesirably large loans to directors and to officers, either straight loans or to companies in which they are interested. As a means of attacking this problem, I am suggesting that no loans should be made to any officer or director of a national bank unless he has furnished a financial statement of his condition, and that such financial statements be required also of all corporations in which such officer or director is interested in control, as a precedent condition of the granting of any loan. 7e may or -4except from this requirement loans placed upon readily marketable securities or collateral. In the second place, I am suggesting that the endorsements and guarantees of the paper of the corporations, the majority of stock of which is owned by any one person, should be included in the guarantees and endorsements of that person in connection with the limitations as to ag-regate lines set forth in Section 5200. Then we come to a more controversial proposition, at least, I think it would prove to be more controversial. We find plenty of evidence of persistent violations of the various provisions of the national banking law and evidence of non-effective management, management which is likely to result subsequently in the insolvency of a bank, evidence of undue control by a particular officer of a bank using it one way or another for his own purposes with very little apparent control e::ercised by the other officers and directors. I am prepared to suggest that a special board be app- ointed, perhans consisting of the Comptroller of the Currency, the Governor of the Federal Reserve Board and the Secretary of the Treasury, which by unanimous vote will have the power to remove officers or directors of national banks on evidence of --)ersistent violation of the law or incapacity for management. of This power should not be lodged in any one person, it should be exercised with great care and, therefore, I am inclined to think a unanimous vote would be necessary. If such power were lodged anywhere, I doubt if it would have to be used frequently. There are an enormous number of cases, however, in the examiners' reports which are clear evidence that given individuals ought not to be connected with the banks. You cannot perhaps get the directors to act formally in the pre- mises. I have come across numbers of cases in which the examiners com- mented very unfavorably unon a cashier, or upon a vice-president, running •••• f=111 the bank, but further commented upon the unwillingness and all sorts of reasons why the directors would not remove him; some times their inability was because he controlled the stock. Another point relates to the swapping of paper between banks, especially small banks in an endeavor to do more business than their resources warrant, or in an endeavor to avoid the loaning limitations of the law. The reports show no evidence of any obligations on the part of the bank which has placed the paner but very frequently some kind of obligation, moral or otherwise, seems to be in the background and recognized by the ban's.. I suggest in meeting this in part, perhaps, a provision to the followin2. effect: That no obligation shall be assumed or incurred by a national bank in connection with the sale or hypothecation of any of its assets which has not definitely been recorded upon the proper books of the bank at the time the transaction is concummated. If such trans- action was not so recorded, the bank should not be permitted in any way to assume the obligation. I think banks ought to try to sell such paper as brokers do on the basis of the paper. If paper is bought on the basis of the bank it is virtually in the nature of an acceptance. very , I am making ailew sugs;estions regarding S ection 5230, the first being related to those provisions which make no limitation on amount. Commercial and business paper is one of those which has been amon„; such since the formulation of the national banking system, and was borrowed from the rew York State law, and borrowed at a tire when most transactions involving the sale of goods resulted in the appearance of notes or bills of exchange. I am suggesting that inasmuch as there is no limitation on the amount there ought to be a more definite indication of the klnd of paper that can be taken. I am suggesting that the pro- - 6-. vision read "Commercial or business paper taken in payment of goods at the time of sale or delivery" in order that this commercial or business paper shall be current. "actually owned". The paper, of course, should be I am inclined also to think that it should include a provision which would eliminate what the British call "pig on pork", that is, sales of goods between related business concerns, - the vendor ought to be entitely independent of the buyer. If you do not place any limitation of this type u:oon the bills of exchange and conmercial paper, then it appears to me that there ought to be a limitation as to the amount, as there is in the New York law, which in addition to the 1010 limitation has a further limitation of 40% on the aggregate amount which may be loaned on every kind of paper. On the whole, I rather prefer a def- inition of the kind of paper that can be taken in an unlimited amount rather than a blanket limitation on the aggregate which may be loaned in every way. The first McFadden Bill contained a new provision relating to guarantees and endorsements permitting 15,7 , in addition to the usual 10% of paper other than bills of exchange and business paper guaranteed by the borrower. That was designed to cover miscellaneous kinds of loans, including renewals of business notes and obligations in connection with real estate and so on. I am suggesting a more definite indication of what is to be covered, very definitely excluding accommodation naper and suggesting that the guatantees of cornorations owned largely by one man be included in his guarantees for this 15% limitation. aboutlas far as I have gotten as yet with Section 5200. tackled the commodity clause of that section as yet. This is I have not I do not intend to formulate any opinion until after I have been to Texas and other cotton states, as I do not feel that I understand the conditions well enough. -7- (In answer to a ouestion regarding assessments made by the Comptroller of the Currency on stockholders of national banks, the following statement was made:) The uaestion of how to handle weak banirs is one that is brought to my attention in reading the examiners' reports. There are cases of weak banks being absorbed by other banks not very strong and then the whole outfit going under. There are also cases of assessments on the capital of weak banks and then after the assessment being made the bank going under. It is my impression that it is dangerous for a bank to absorb a weak bank unless the absorbing bank is very strong or well managed. An assessment on a weak bank accomplishes little or nothing if no change occurs in the ranagement. I do not think we have reached any conclusion as to any legislation possible to cover that. Bank assessments should be paid in a less time than 90 days and it might be feasible that the obligation should rest upon the owner of the stock at the time the assessment was directed. That would cover the point the Comptroller made about transferring stock - one could not relieve oneself of the assessment by sale of stock. We now come to a matter which relates more directly to the conduct of the Federal reserve banks than any of the other points raised. Liquidation of failed banks this year will, it is estimated, return to the depositors 41 cents. Before the Federal ‘ liauidation, it appears, averaged 80 cents. eserve System the This, I think, may be at- tributed not to more serious economic conditions, but to the nartial liauidation of banks before they fail, a liquidation Ithich is more extensive than was formerly the case and that is made possible through the larger borrowing possaalitz'T which banks have at the reserve banks in addition to the facilities which they have always had with city corresnondents. -3I have had figures taken off which daow that the liquidation before failure is mainly in demand deposits. Over reduction of demand deposits have occurred in the twelve months' prior to the failure of banks in the last year as contrasted with 10';'0 of time deposits. This clearly indicates to my mina that the savings depositor is not getting a square deal under the existing arrangement. He is not as alert and does not know as mach about the condition of tottering banks and doesn't get out from under. We assume that a, good deal of the reduction of time de- posits was also brought about by nersons who had demand deposits and were in the know. There are two possible remedies to my mind, the chief one relates to reserve banks lending to habitual borrowers and the other has to do with some form of segregation of assets. I consider the Federal Reserve Act itself over emohasized the feature of eligibility as a determining factor of rediscounting and there is over estimation of the potency of the rediscount rate as a means of control. The rediscount rate is a means of control in the New York District, but clearly is not in the Minneapolis District. A bank acting under the law must necessarily liquidate its superior assets when borrowing from a reserve bank and unless the additional business the rediscounting bank is able to handle is equally good as that represented by paper that is rediscuunted the bank is in a less satisfactory condition as a result of its dealings with the Federal reserve bank. My conclusion is that the primary matter to be determined by the reserve banks in lending to a member bank is the character of the management of the bank and the general character of business the bank is conducting. If it has an unsatisfactory management very little or nothing should be loaned to it, regardless of the quality of the paper it puts up because you -9- are jeopardizing the interests of the denositors ofthat bank in so doing. One test that a bank is a proper borrower at a reserve bank in normal times seems to me to be its ability to limidate all of its loans and stay out of the reserve bank for one or moremonths in every year. I do not hold that you can adont.that as a rigid policy that is always to be followed. I think it Should Different things may happen in different sections. beulearly understood by member banks that the safe line of borrowing consists of taking care of the peculit.r requirements in their localities and nothing more. I believe it is a good policy also to have a system of segregation of assets for the benefit of the savings denositors which will not involve the adoption of restrictive provisions as to the investment of savings deposits. What is needed is to provide that the savings depositors shall have their fair share of the assets and that none of the assets represented by their denosits Shall be taken as the basis for loans elswhere in order to provide the banks with by the connercial depositors. funds to meet withdrawals I think it would be possible to segregate real estate mortgage loans since those loans are related as regards their amount to the total deJosits held by national banks. states which have segregation at the present tine. There are a number of Massachusetts, California and Texas have highly restrictive nrovisions regarding the investment of savings deposits. Michigan has a most liberal law. Banks in that state can- not invest savings funds as freely as 2ands in the commercial departmant, but they have a pretty wide range. by both departments. The same sort of investment can be made I have in mind making some inquiries in Michigan as to whether they have any difficulty in keeping the assets of the two departments separate. If there were segregation, some of the reserve banks could not have taken all of the collateral they have taken, because some of the loWS stuff would have- beg la tioaa .-..avia6s. department. 4, With regaffils the Dr'Ictice of the Federal reserve banks ta171.ng excess collateral, I think as a general policy it is bad. When you come to a specific scheme for restoring a bank to a sound condition it might hamper the reserve bank if there was an absolute prohibition against taking extra collateral, but I think it is damnable to take a lot of extra collateral from a poorly managed bank and let it get worse. A reserve bank should stand on the assets which a member bank nuts un for rediscount. 1 A certain amount of risk of the tyne which would fot%e the reserv4 banks to pay regard to the condition of the borrower is to my mind highly desirable just as it is in running a commercial bank and dealing with iadividual customers. The Principles of the Federal Reserve Act, it seems to me, could be ap-ilied nretty well if membership in the Federal Reserve System were limited to the 500 largest city banks in this country. It is perfectly unfitted for this country bank problem. Ey last pr000sition is this: I think the analysis and research work of the Federal Reserve Board has been altogether too much concerned with :s ;eneral business conditions and the operations of the New York money market, and not enough concerned with banking operations and conditions affecting banking in particular sections of the country. I do not think it of particu- lar importonce for the Federal Reserve Board to announce the money conditions last May, for instance, but rather it should undertake such nroblems as those of dealing with the effect on running bank in Iowa arising by reason of the enor- mous increase in mortgage accommodations there during the last few years. these reports of bank failures, reports of weak banks, etc. I think one or two men could proerly spend all of their time in an analysis of these peculiar cases. It is along these lines, I believe, that the Board should Take ... 11 - 1G, develop research work, also the various reserve banks should do so, insofar as they concern the local situation. The control of branches is en interesting matter about which I know very little. I mean the branches of Federal reserve banks, I am goinc to visit all of the reserve banks, except New York and San Francisco, ,^rid I hope to ,.et some light on this matter in connection with my other investigations. • S—e,t. 64i • Fornt No. MI. Office Corresportence TO FEDERAL RESERVE BOARD Date Subject: t Mr. Smead Frolw November 5, 1926. Location of state bank and trust company members of the Federal Reserve System. (.; In accordance with your request we have prepared the statement attached hereto showing the number of state bank and trust company members which are located in cities having a population of 25,000 or over and the number located in smaller cities and towns in each state. Of the 156 cities with a population of 25,000 or over in which state bank members are located, 20 have clearing house associations which according to the Bankers directory conduct examinations of clearing house member banks. These cities, which are written in capital letters in the attached statement, had 188 state bank members on June 30 of which 95 were not members of the local clearing house. On the same date there were 243 state bank members in cities having a population of 25,000 or more in which the clearing house associations do not examine the member banks, and 972 state bank members in cities and towns having a population of less than 25,000, none of which are in cities in which the local clearing house conducts examinations of its member banks. In addition to the 20 cities referred to above, 12 others listed below, in which there are no state bank members, have clearing house associations which conduct bank examinations. Population Population Utah Hutchinson, Kansas Ogden, 58,-869 25.91U Oklahoma City,Okla. 139,947 123,743 Kans. Kansas City, St. Paul, Minn. 246,001 30,421 La Crosse, Wis. Seattle, Wash. 315,685 425,435 Minneapolis, Minn. 124,478 Tulsa, Okla. 136,220 Nashville, Tenn. Wichita, Kans. 81,245 178,927 New Haven, Conn. SUMMARY BY STATES A. Banks in cities in which Clearing Houses conduct examinations of clearing house members. Clearing house members Number Total resources t State Massachusetts Boston New York New York City New Jersey Newark Pennsylvania Philadelphia Alabama Montgomery Louisiana New Orleans t..0, las YAM, Clearing house nonmembers* Number J Total resources $438,777,000 15 3,612,777,000 7 172,221,000 6 309,806,000 1 2,668,000 6 214,436,000 Volume 170 - Page 9 24 $1,135,087,000 fEe 9 169,423,000 1 1,538,000 Form No. 181. Office Corresportence FEDERAL RESERVE BOARD Date_ Subject_ _ To • From -.2 State Kentuc4 Louisville Ohio Cleveland Columbus Indiana Indianapolis Illinois Chicago Michigan Detroit Wisconsin Milwaukee Missouri Kansas City St. Louis Colorado Denver Oregon Portland California Los Angeles Pasadena Utah Salt Lake City Total Clearing house now4members* Clearing house members Total resources Total resources , Number Number 4 IMP 59,364,000 11•11, 3 : 000 37,576 5 1 775,922,000 26,230,000 1 24,000,000 13 1,104,514,000 17 125,678,000 564,145,000 3 78,007,000 2 SEW 01•11 7,598,000 73,131,000 1 121,830,000 232,958,000 29 2,409,000 107,954,000 1 19,532,000 1 4,384,o00 2 12,129,000 1111 3 1 476,252,000 4,361,000 3 93 25,802,000 2 8,675,000 8,211,491,000 95 1,737,693,000 *Includes banks which clear through members of the clearing house as follows: New Orleans - 1 ; Chicago - 11; Detroit - 1; Milwaukee - 1; and St. Louis - B. 6. Banks in cities in which the local clearing house, if any, does not conduct examinations of clearing house members. State Maine New Hampshire Massachusetts Rhode Island Connecticut 00T KIN PINT P•MTV . , OFT10•1 Banks in cities with a population of 25,000 or over Number Total resources Banks in cities with a population under 25,000 Total resources Number 2 $30,036,000 2 1 13 146,416,000 289,789,000 16,616,000 4 $5,365,000 1,204,000 17,291,000 1 2,251,000 4 2 Form No. lat. Office CorrespoiSence FEDERAL RESERVE BOARD • Date Subject_ To From -3- State New York New Jersey Pennsylvania Delaware Maryland Virginia West Virginia North Carolina South Carolina Georgia Florida Alabama Mississippi Louisiana Texas Arkansas Kentucky Tennessee Ohio Indiana Illinois Michigan Wisconsin Minnesota Iowa Missouri North Dakota South Dakota Nebraska Kansas Montana Wyoming Colorado New Mexico Oklahoma Washington Oregon California Idaho Utah Arizona Total ••T MIN IONIIIT ROM 111,• Banks in cities with a population of 25,000 or over umber T ta re ource ao 26 33 3 3 6 3 3 1 769,033,000 305,822,000 457,309,000 45 27 44 37,374,000 1 2 89,047,000 70,148,000 26,315,000 70,015,000 3,754,000 7 3 5 lo7,626,000 2 2 38,878,000 57,899,000 1 8,748,000 7,547,000 42,303,000 3,559,000 4 go,414,000 24 383,653,000 44,688,000 71,728,000 218,340,000 11,419,000 6 13 19 2 MOP 5 3 12,667,000 2 15 : 471,000 50,770,000 40•11 MEI 3 16,399,000 14 1,034,976,000 1 13,780,000 GIS 243 Banks in cities with a population under 25,000 Number Total resources 4,532,539 6 14 6 15 5g, 7 16 6 3 111 27 2 6 51 9 43, 129 21 22 75 20 2 10 10 7 29 2 2 2 3 41 35 13 19 log,o77,000 g4,374,000 lo2,91o,000 1,695,000 1,635,000 3,332,000 12,496,000 9,284,000 16,29o,000 24,753,0oo lo,476,000 g,6g2,000 12,633,000 3,127,000 44,g9g,000 22,561,000 4,o36,000 2,776,000 59,245,000 6,46g,000 41,g59,000 16g,594,000 24,571,000 25,154,000 69,428,000 16,576,000 529,000 6,219,000 5,025,000 4,677,000 2o,469,000 61g,000 912,000 516,000 1,232,000 21 2 29,918,000 22,312,000 29,900,000 10,684,000 15,190,000 616,000 972 1,o6o,g5g,000 NUMBER AND TOTAL RES4110ES OF STATE BANK AND TRUST COLlehY MEMBERS ON JUNE 30, 1926, IN CITIES HAVING A POPULATION OF 25,000 OR OVER City (Amounts in thousands of dollars) ;Number Total 1Popu1ation 1 of resources City 1Population banks Maine Bangor Portland Other cities 26,664 75,333 New Hampshire Other cities 1 1 2 1 Massachusetts Arlington BOSTON Cambridge Fall River Fitchburg Holyoke Lawrence Lynn Newton Quincy Salem Waltham Worcester Other cities 25,125 781,529 120,053 129,662 44,034 60,892 95,136 103,147 53,364 60,131 42,821 34,926 192,242 1 9 2 1 1 1 Rhode Island Providence 267,918 4 68,039 98,411 1 1 1 Connecticut New Britain Waterbury Other cities New York Amsterdam Binghamton Buffalo Elmira Kingston NEW YORK Cen.Res.City Reserve city Niagara Falls Rochester Rome Schenectady Syracuse Utica Watertown White Plains Other cities 1 1 1 1 1 1 4 35,260 71,915 538,016 48,359 27,049 6,5oo,000 1 1 4 1 1 57,033 316,786 29,049 92,786 182,003 101,604 32,836 27,428 33 6 1 1 1 1 3 3 1 1 45 New Jersey Atlantic City 53,287 Bayonne 88,767 Bloomfield 25,955 Camden 128,642 E. Orange 59,967 1,204 Elizabeth 103,947 Hoboken 68,166 Jersey City 315,280 4,289 Montclair 32,922 452,513 438,777 NEWARK 21,601 Passaic 68,979 141,695 8,090 Paterson 47,136 5,909 Perth Amboy 31,748 11,365 Plainfield 63,117 9,374 Union City 9,702 Other cities 17,049 5,536 Pennsylvania 92,151 6,790 Allentown 25,230 8,108 Butler 68,507 38,60 Chester 36,810 17,291 Easton Erie 112,571 Harrisburg 83,422 36,143 289,789 Hazleton New Castle 49,842 Norristown 34,836 6,518 PHILADELPHIA 1,97 63 9 1:, 5 36 10,098 Pittsburgh Reserve city 2,251 Outside res.cy. Reading 112,707 Scranton 142,266 4,600 77,644 8,960 Wilkes Barre 42,656 439,170 Williamsport 50,000 11,603 York 6,289 Other cities 13,434 16,602 5,365 4,629,561 Delaware 118,303 Wilmington 19,029 Other cities 61,081 5,552 Maryland 18,657 Baltimore 130,969 Other cities 41,252 10,886 10,985 108,077! Number Total of resources banks 3 1 3 1 2 1 3 2 7 1 1 2 3 1 27 17,566 9,215 10,652 16,704 22,971 10,869 8,359 94,909 20,321 172,221 10,630 13,456 10,515 23,789 35,866 84,374 3 1 1 1 1 2 3 1 1 15 8,057 6,451 8,277 9,111 6,576 10,691 19,299 5,955 6,366 479,229 6 2 2 1 2 2 4 44 299,050 14,383 14,520 17,311 7,083 11,471 12,708 102,910 122,049 3 1 37,374 1,695 796,296 3 2 89,047 1,635 NUMBER AND TOTAL RESOUR41I/OF STATE BANK AND TRUST COMPAAlkEMBERS ON JUNE 30, 1926, IN CITIES HAVING A POPULATION OF 25,000 OR OVER City Virginia Norfolk Petersburg Richmond Other cities West Virginia Charleston Wheeling Other cities North Carolina Charlotte Winston-Salem Other cities (Amounts in thousands of dollars Number Total of Population City resources banks 16)4,105 35,712 186,403 1 4 6 49,019 56,208 1 2 14 53,318 2 1 69,031 6 South Carolina Charleston Othr cities 73,125 GeorAia Atlanta Savannah Other cities 227,710 93,134 Florida Jacksonville Mead Tampa Other cities 95,450 69,754 94,743 1 1 1 7 Alabama Birmingham Mobile MONTGOMERY Other cities 205,670 65,955 46,481 3 Louisiana Baton Rouge NEW ORLEANS Shreveport Other cities 15 16,290 2 1 0 27,832 1 414,493 57,857 7 1 3 104,929 198,069 Number Total of resources banks 1 1 111 3,958 3,589 44,898 31,643 1 1,118 74,216 5 41,185 27 22,561 1 4 3,559 59,364 2 4,036 66,575 1 174,533 3 6 7,958 72,456 2,776 46,895 259,259 9,284 3,754 3 4 58 Texas El Paso San Antonio Other cities Arkansas Ft. Smith Little Rock 13,386 Other cities 12,929 12,496 Kentucky Lexington 22,938 LOUISVILLE 47,077 Other cities 1 16 Mississippi Other cities 8,352 4,797 56,999 3,332 Population Tennessee Chattanooga Memphis Other cities Ohio Akron 208,435 Canton 106,260 Cincinnati 409,333 CLEVELAND 936,485 Reserve city Outside res.cy. 1,227 8,760 COLUMBUS 279,836 28,891 Lima 46,717 Mansfield 10,476 31,820 Middletown 30,823 Newark 30,461 Portsmouth 38,890 39,087 Steubenville 19,009 31,973 Toledo 287,380 2:68 Warren 34,679 8,b82 Youngstown 159,970 Other cities 25,700 81,926 24,753 4 6 65,531 5,791 150,274 6 755,210 2 1 1 1 1 1 58,288 26,230 4,020 2,821 2,616 1 1 3,705 3,450 2 11,198 3 90,272 6,953 1 2 51 37,022 59,245 27,104 93,601 1 1 5,044 2,352 50,385 358,819 1 1 26,674 30,495 80,091 71,071 1 1 2 24,000 3,443 4,137 11,875 1 9 9,457 6,468 12,633 Indiana . Elkhart Evansville 3,358 Hammond 215,974 INDIANAPOLIS 5,390 Marion 3,127 Richmond South Bend Terre Haute Other cities 8,380 NUMBER AND TOTAL RESOURC46 STATE BANK AND TRUST COMPAN4116BERS ON JUNE 30, 1926, IN CITIES HAVING A POPULATION OF 25,000 OR OVER City Illinois Belleville CHICAGO Cen. res.cy. Reserve city Cicero E. St. Louis Evanston Joliet Oak Park Quincy Rock Island Springfield Other cities Michigan Bay City DETROIT Flint Grand Rapids Highland Park Jackson Lansing Pontiac Port Huron Saginaw Other cities Wisconsin Madison MILWAuKEE Sheboygan Other cities Amounts in thousands of dollars 7 NuMberNuMber Total Total Population of City Population of resaarces resources banks banks . 26,969 62,238 71,423 43,883 40,57g 51,423 37,478 40,073 63,923 48,907 1,242,044 130,316 153,698 72,289 57,972 70,753 47,455 29,954 72,100 46,385 509,192 33,535 51,477 62,558 145,053 Missouri 29,902 Joplin 367,481 KANSAS CITY 78,342 St. Joseph ST. LOUIS 821,543 Reserve city Outside res.cy So. St. Joseph 77,403 Other cities 4,470 10 20 2 1 2 2 2 1 1 1 43 1,051,591 178,601 6,345 6,926 14,237 4,380 11,882 11,307 1,855 10,326 41,859 3 11 4 3 2 2 1 1 1 2 129 19,118 642,152 40,628 54,601 35,860 4,471 11,483 13,216 7,652 26,311 168,594 North Dakota Other cities 2 529 South Dakota Other cities 10 6,219 Nebraska Other cities 10 5,025 Kansas Other cities 7 4,677 2 29 15,471 20,469 2 618 2 2 23,916 912 New Mexico Other cities 2 516 Oklahoma Other cities 3 1,232 2,995,239 Minnesota Other cities Iowa Cedar Rapids Davenport Des Moines Other cities 1 6,16g 1 3 3. 21 80,729 5,251 24,571 22 25,154 1 1 3 75 3,171 24,469 23,130 69,428 1 2 1 5,870 124,239 2,678 12 25 1 20 242,519 98,393 4,119 16,576 Montana Butte Other cities 42,867 Wyomipta Other cities Colorado DENVER Other cities 280,911 Washiagton Everett Spokane Other cities 29,303 108,897 1 2 41 2,225 14,174 29,918 2.1:2.02a PORTLAND Other cities 282,383 2 35 12,129 22,312 1 3 1 1 11 1 13 11,739 476,252 4,361 9,251 1,012,339 1,647 29,900 California Long Beach 91,182 LOS ANGELES 674,641 PASADENA 56,732 Sacramento 72,260 San Francisco 558,410 San Jose 43,551 Other cities NUMBER AND TOTAL RESOUIS OF STATE BANK AND TRUST COMPAIIIMEMBERS ON JUNE 30, 1926, IN CITIES HAVING A POPULATION OF 25,000 OR OVER City Amounts in thousands of dollars Number Number Total Total • Population IICity Population of II I resources resources banks banks Idaho Other cities Utah SALT LAKE CITY Other cities Arizona Phoenix Other cities 19 130,948 5 21 34,477 15,190 1 2 13,780 616 Office Corresponiknce To Ait • Form No. 131. ",ddy FEDERAL RESERVE BOARD Subject: Date ...pril 22, / Mr. Smead 2-8196 .Atached hereto are the t'..;o statements you reci-aested regardin.:); tbe cost of land and buildings at Ilichrr.ond and Baltimore. Volume 170 Page 11 • COST OF LAND LND BUILDINGS AT RICHMOND AND BALTIMORE DEC7:j771 Fl, Richmond Cost of Land Cost of buildings including vaults and fixed machinery and equipment Total Less charge-offs and reserves Net book value Baltimore Building site: Land Miscellaneous building expenses Total Less charge-offs Net Book value Banking house to be sold: Cost of land Cost of building Total Charge-offs Net book value $202,025 2,441,853 2,643,878 901,831 1,742,047 250,487 345 250,832 63,343 187,489 120,000 81,023 201,023 21,023 180,000 Ratio to Capital Capital and surplus Richmond and Baltimore combined - Cost of land Cost of buildinps including vaults and fixed machinery and equipment Total Less charge-offs and reserves Net book value 572,512 2,523,221 9.4 41,4 3.1 13.8 3,095,733 50.6 16.9 986,197 16.2 5.4 2,109,536 34.5 11.5 • COST OF LAND AND BUILDINGS AT RICH7OND BALTINORE .(Including estimated cost of new building at BaltimOre) nITLFT3J;E Fl, 1.q6 Richmond Cost of land Cost of buildings including vaults and fixed machinery and equipment Total Less. charge-offs and reserves Net book value 2,441,ba 2,643,875 901,831 1,742,047 Baltimore Building site: Cost of land BuildingS(congressional limit) Total Less charge-offs Net l'eleh value 250,487 1,025,000 1,2754-g7 63,343 1,212,144 Banking house to be sold Cost of land Cost of building Total Less charge-offs Vet podk value $202,025 120,000 81,023 201,023 21,023 180,000 Ratio to Canital Capital and surnlus Richmond and Balitmore combined - Cost of land 572,512 Cost of buildings includinE fixed machinery and equinment (Baltimore new building at $1,025,000) 3,547,876 Total Less charge-offs and reserves Net la.eok valAis 9.4 3.1 58.2 19.4 4,120,388 67.6 22.5 986,197 3,134,191 16.2 51.4 5.4 17.1 4111. hamlin• 3 April 27, 1927. To: Federal Reserve Board From Mr. Smead SUBJECT: Branches of member and nonmember banks, Dec. 31, 1926. St. 5334. New branch bank record. Based on information received from the Federal reserve agents in response to the Board's letter St. 5i20 of October 14, 1926, a loose-leaf record has been prepared showing all branches of both member and nonmember banks in operation in the United States. The record shows the name and location of the bank operating branches; the population of the town or city in which the parent bank is located; the city and street address of each branch; whether the branch, if not in the same city as its head office, is in contiguous or innon-contiguous territory; whether it was established de novo (as a branch) or whether an independent bank was taken over and converted into a branch, with the capital and deposits of the bank taken over, if available; and the date on which the branch was established or acquired by the present parent institution. Provision is also made for summarizing the information s6mi-annually with respect to each bank, the sumeeary to show the number of branches in operation, the number established and discontinued during the current six-month period, and the capital, surplus and deposits of the parent bank and its branches. An effort was also made originally to distinguish between full-fledged branches and so-called additional offices or teller's windows but this was abandoned, partly because sue' a distinction is not made by many of the state banking departments or in the recent McFadden Act. Therefore, in the new record and in the compilations based thereon all so-called additional offices have been considered as branches. It is intended to keep the record of branches of both member and nonmember banks as nearly up to date and complete as practicable, so that it may be used as the basis of such statistical data on the subject of branch banking as the Board may require from time to time. General status of branch bankine. Dec. 31, 1926. The status of branch banking in the United States is shown in the attached statement which consists of first, a summary by states, classes of banks, population groups, and location of branches, and second, details by cities and by classes of banks, with the population of each city in which a ba.,k that operates branches is located. The summary shows that out of a total of 2g,000 banks in the United States on December 31, 1926, 79 banks in 401 cities were operating 2,777 branches. If mutual savings and private banks are excluded, in order to obtain figures comparable with previous compilations, it is found that 730 banks were operating 2,690 branches at the end of 192S, as compared with 735 banks with 2,572 branches in December 1925, and 66 banks with 2,243 branches in June 1924. There was during 1926, therefore, an increase of llg in the number of branches in operation (exclusive of branches of mutual savings and private banks) and a nominal decrease in the number of parent banks operating the branches, this decrease being more than accounted for by consolidationsof banks having branches. Volume 170 Page 37 • • - 2. The following table chows the total number of banks of each class, the number . which were operating branches, and the m.Coel- of branches at the end of 1925 and 1925 and in June 1924. Nu:Tibor of banks Total -Toporating • branches National banks December 1926 December 1925 June 1924 Merper state banks December 1926 December 1926 Jane 1924 Nonr,20ber state banks December 1926 December 1925 June 1924 Total e::clusive of mutual savin6;s and private banks December 1926 December 192. June 1924 Mutual savings ban1: .s, Dec. 1925 Private banks, Dec. 1325 jumber of branches 7,906 141 b,OSO 132 108 1,354 1,4\41 1,570 195 1c)7 191 1,33 1,280 *17,550 *1:7,,10:3 1 ,520 39)4 923 950 Sj8 25,910 27,652 2Z,170 *520 *1495 4o4 332 248 1,137 406 387 730 735 Ss6 2,690 2,572 2,243 50 75 9 12 *June figures, based on annual re-oort, Comptroller of the Currency. Principal states and cities in which branches are located. As indicated in the saamary table submitted herewith, branch banKing is confined to 21 states and the District oi Columbia. Pour-fifths of the total number of branche2 are located in S states - a large number of t7aeL in the big cities. This is brought out in the following tabulation which shows fiLuree for Doccer 1926 and December 1925 for the principal states and ?rincipal cities in which branches are in operation (figures being exclusive o: ",:ranches of matual savings and private banks): • • • A 3 December 1926 California New York Michigan Ohio Pennsylvania Louisiana Massachusetts Maryland S66 393 640 441 3s4 227 11S 213 112 io4 loi 95 ss 4gg Total, g States Total, United States New York City Detroit Los AnF;eles Philadelphia San Francisco Cleveland Buffalo Boston New Orleans Cincinnati Baltimore Toledo Grand Rapids Number of branches December Increase 1925 2,0S-8 2,572 47 9 14 4 9 13 3 125 llg 21 6 24 2 2 70 57 38 41 43 39 35 Total, 13 cities Total, United States 35 2a') 1,415 2,SSO 1,331 2,572 4 10 5 1 7 s4 us Size of cities in which banks operating branches are locat,Jd. Thc YcFadden amendment to the Federal Reserve and the 7ational Bank • acts authorizes the operation of branches by Nltional banV,r with the following limitations, (except that branches already in existenceibe'continued in operation though in excess of the limitations prescribed): Banks in towns and cities with population of - 100,000 and over - indefinite numbr of branches subject to the determination of Comptroller of the Currency. 50,000 to 100,000 - 2 branches 25,000 to 50,000 - 1 branch Less than 25,000 - no branches • • • A On December 31, 1926, member and nonmember banks in the above population groups were operating branches as follows: Number of Number of branches cities in Number In nonIn In which parent of Total Head contig. contiguous banks are banks terriofficdi terrilocated city 1 tory tory Banks located in towns and cities with population of 100,000 or more 50,000 to 100,000 25,000 to 50,000 Less than 25,000 Total 53 37 35 2(6 401 2,067 1,715 97 128 111 241 51 92 57 297 490 59 789 2,777 1,928 3 23 32 28 403 150 699 370 71 It will be seen that at the end of last year 490 branches were being operated by 297 member and nonmember banks in 276 towns and cities that had a population of less than 25,000 - cities in which national banks, under the recent amendment, cannot establish branches. The amendment apparently does not require nonmember banks in such cities, upon admission to membership, to discontinue local branches even though established .ffter the passage of the McFadden bill. Number of branches operated by individual banks. Of interest in connection with the size of cities is the number of branches operated by individual banks. As shown by the summary, 446 or over one half of the total of 789 banks that operate branches have only 1 branch, 131 have 2 branches, 124 have 3-5 branches, 38 have 6-10 branches, and only 50 have more than 10 branches. Of the 50 banks that have more than 10 branches, all but 4 are located in cities with a population of over 100,000, 1 in a city of 25,000-50,000 population, and 3 in towns of less than 25,000 population. The following table shows the size of individual branch banking systems according to population groups and according to classes of banks. Total By population groups Banks located in towns and cities with population of 100,000 or more 50,000 to 100,000 25,000 to 50,000 Less than 25,000 Total B.-17. classes of banks National banks Member state Nonmember state Mutual savings Private Number of banks with branches 2 1 3-5 6-10 , Over branch bran- branl bran10 ches branches ches ches 370 71 51 297 /89 160 46 30 141 195 394 50 86 78 235 41 9 6 210 446 14 48 131 76 10 6 32 124 26 13 57 12 28 70 4 3 41 66 4 31 3 46 4 38 3 50 18 12 30 11 1 • -5The n-zies and location of the banks oper atin; c 30 or more domestic branches ?.re shown below: Nalaib,..r of branches 100 1=7 Location and lame of parent bank 3a-.1 7-21ncisco 1 Ii 31 Los Angeles 45 62 40 R2 1.!3 33 7c- York City Cleveland -)ecroit "Detroit 2uffalo Bank of Italy (R.3cently consolidated with Liberty Bank of America to form a national banl:, and now has 278 branches ) Mercantile Trast Co. Lib,3rty 7ank (7onmember. Consolidated with Beak of America to form Liberty Bank of A:aerica, which consolidated with Ban': of Italy to form a national bank). Pacific Sgathwest Trust Savings Bank Security Trust and Savings Bank Y.erchants National Trast and Savings Bank California Bank (nonme:7..ber) Corn Exchange Bank . Bank of the If.anhattan Co. Clevt-land Trast Co. ":layne County and Pomo Savings Bank Peo?les Stat.: Bank narine Trast Co. o jperati branches outside head office cit.,: Of the 789 banks that o-perate branclies, :J.73 have branches only in the head office city, 2ES only T.:Itside the head city, and both in and outside ne head office city . The bra.achos of banks are,of course, nearly all confined to the head 3L-ACC city, b-at the case of member state barAs 55 gat of 195 had outside branc'les, and in 'Cie c, )ze of nonmember state ban'cs 23C out cf 394 had outside brp.,nchcs. The 2:olloAnc; t'oulation shows the nu:&cr of banl, ..-s of each class which had 'ore:aches inside and outside the cities in w'zlich the parent bank is loca ted: Total - all banks baaks Member state banks Nonmember state ban:7.s Mutual savins banks Private banks Number of b.Ln17.s . operating branches Outside heed In and Total office outside city only E.O.city 759 141 195 394 50 9 26g 7 35 209 11 4g 5 20 21 2 0 While a large majority of branches are locate,: in the same city as the parent bank,,there were 845 branches in operation outside the head office city at the end of 1,926. •Of these 849 bran ches, 150 were in territory contiguo us to the corporate limits of the head offi ce cities, includin6 43, 31 and 15, res-pectively, in the vicinity of Los Angeles, San Frarlcisco and Cleveland. C!, ,lifornia has the largest number of branches located outside parent bank cities - 337 out of 349 in the United States, but there are also a consider2ble number in Loui siana, • 4 -6Maine, Maryland, North Carolina, Ohio, Tennessee, and Virginia. The followi ng tabulation shows the number of branches located in the same cities as the parent banks, in contiguous territory, and in non-contiguous territo ry, by classes of banks: Number of. Total banks Total - all banks 2,777 1,923 404 377 1,363 1,037 923 449 61 75 12 4 789 National banks Member state banks Nonmember state banks Mutual savings Private banks Nonber of branches In In con- In nonHead ticuous contiguous office territory territory City 141 195 394 50 9 150 699 g 89 41. 19 237 433 12 2 - Proportion of denosits held by banks operating branches. The banks which operate branches represont in many cases a very large part of the banking resource.. of the state or community, as will be seen from the table below which compares total deposits of banks that operate branches with deposits of all banks, for certain states and for the United States as a whole: (Amounts in thousands of dollars) UNITED STATES • Total Number of banks Number TOeerating of Total*) branches branches 28,025 National banks Member state Nonmember state Mutual savings Private 7,906 1,354 17,650 620 495 789 141 195 394 50 9 California - total National Member state All other 625 268 31 326 88 16 16 56 663 85 355 228 New York - total National State member All other Michigan - total National State member All other 1,153 546 105 26 507 128 109 49g 785 134 38 41. 68 11 157 494 3)4 23 20 328 )49 Ohio - total Nattonal State member All other 1,079 347 52 227 83 5 5 22 25 158 6)49 2,777 4o4 1,363 923 75 12 1 266 93 397 64 Total deposits All Banks operabanks* ting branches 54,629,210 20,851,667 13,656,498 '2,410,173 7,577,623 133,249 3,399,689 981,716 1,441,776 976,197 15,140,952 4,925,958 5,176,666 5,08,326 1,744,567 47o,353 873,356 400,858 2,506,573 738,206 1,090,517 677,850 19,657,282 5,592,203 9,805,544 2,389,840 1,751,958 17,737 2,468,869 4o7,597 1,390,656 670,636 9,229,514 2,834,272 4,787,156 1,608,086 1,023,523 236,848 715,539 71,136 1,202,461 75,708 959,272 167,481 • -7 Massachusetts - total National ember state All other 444 155 26 253 78 16 iS 46 132 Louisiana - total National ember state All other 239 33 11 195 .1440 1 31 28 55 3,514,274 1,153,675 504,062 1,956,537 1,421,359 692,498 438,748 290,113 104 0 45 51 433,109 108,378 193,474 132,757 258,571 11,698 176,178 70,695 49 *Nonmember bank figures in these columns are for June 1926, based on annual report, Comptroller of the Currency. The figures given above indicate that deposits of those member state banks in California which operate branches represent 96 per cent of the total deposits of all member state banks in California; in New York this ratio is 92 per cent, Ohio 88 per cent, and Michigan 82 per cent. For national banks, corresponding ratios are 42 per cent in California, 58 per cent in New York, 50 per cent in Michigan, and 6o Per cent in Massachusetts. Method of establishment of branches: About 70 per cent of the branches now in operation came into existence de novo, i.e., they were not conversions of independent banks, and in •addition it is probable that in a considerable number of cases the banks which were acquired and converted into branches had been organized in the first instance to provide a legal way for existing banks to obtain branches. The branches in operation at the end of 1926 are classified according to the method of establishment as follows: Total b'fa.nches Established Banks conde nova (as verted into branches branches) National banks Member state Nonmember state Mutual savings Private 4o4 1,353 923 75 12 297 957 648 Total 2,777 1,960 5)4 14 Not re-wrted 83 353 204 1 24 53 71 20 641 176 Of the 641 branches which were originally independent banks, 241 are in California, 111 in New Yorl,c, and 6g in Ohio. Year in which branches were established. The new branch bank record shows the date on which each branch was established, except in the case of branches quired from other institutions by consolidation or purchase. In the latter case the date is that on which the branch was first operated by the present parent institution. On this basis it is found of the 2,777 branches in operation on December 31, 1926, 353 were established or acquired in 1926, 1,536 in the six years from 1920-1925, and 830 prior to 1920. Of interest in reflecting the rapid growth of branch banking in recent years is the following information, which was published in the recent annual reeort of the Federal Reserve Agent at Now York, showing the number of branches which were in operation in theEcond Federal reserve district on June 30 of each year since - 8- 4, 1917, this tabulation being based on the branches which were still in existence on June 30, 1926: rumber If branches 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 163 175 189 216 247 273 324 362 410 474 State laws affectin branch banking. "To information has been received at the Eo2rd's offices to show that there was any change during 1926 in the provisions of state laws relating to branch banking, Which were discussed in the June 1926 Federal Reserve Bulletin, Pages 401 and 402. As indicated in the Bulletin and in the summary sttement submitted herewith, the establishment of branches was permitted at the end of 1926, expressly or by implication, in 21 States and the District of Columbia, but in two of these states (West Virginia and Wyoming) there were no branches in operation; in 17 states the establishment of branches was prohibited, though in .7 of these states branches which ware in operation prior to the passage of the prohibitory legislation were allowed to continue in operation; and in 10 states the laws did not provide for or prohibit the establishment of )fSIII. While there was aprently no action taken last year in the various states with relntion to branch banking, there 1-is been some activity since the Passrlge of the MaFadden Act. In New Jersey a bill was pssed in March permitting the oper-,tion of branches by stto banks, the number of branches being restricted according to the same popul-tion grouping as contained in the McFadden bill. In Pennsylvania the logisl- tura recently passed an rIti-bra.nchbanking bill (not yet signed by the Governor), which prohibits the establish ment of branches exce-A in those cities in 1-hich rv'tional b7nks were operating branches -.prior to March 1, 1927. In I.Cassachusetts, where branches may be established only under specific authority of the leislature, an attempt WPS recently made by the .?-overnor to have the State Eonr1 of Ef?nk Incorporation empowered to permit the establishment of branches, but the crffort was not successful. In Nebraska, the laws of which contained no prevision with respect to branch banking, a bill was passed early in il by the legislature nrohibiting •the establishment of branches, but noAprII informtion has been received as to whether the bill was signed by the Governor. The only branches in Iieration in Nebraska are two branches of nptional banks, located in South Omaha. Chain banking. The reports on branch b2.nking submitted by the Tfederal reserve agents were accompanied, at the Board's request, with such data regarding chnin bqnking as could be obtained without too much difficulty. This information necessnrily is not on a uniform basis, :f_uc, to the difficulty of pro, _Derly defining ch,,in banking and to the differ.Dnt conditions prelmiling in the various st.l.tes. These data will be reviewed in 2.. separr.te memornndum. .... 9 ••• Foreign branches of American brrnks. The statements attached hereto relate only to domestic branches of American b:Inks. Data in the Board's files show that on December 31, 1926, g American ban-kr rere operating 72 branches outside the United States, and 4 American foreign banking corporations (all subsidiaries of member banks) were operating 33 such branches under aEreement with the Federal Reserve Board. Following is a summary of the number and location of foreign branches of American banks and American foreign banking corporations: NaMber of banks National banks Member state Nonmember state American foreign banking corporations Total 3 4 1 Number of branches 57 14 1 4 *33 12 105 Number of branches by countries in which located England France Belgium Spain Italy China Hongkong Japan India 12 4 4 2 2 9 1 4 3 Java Dominican 1 StraitsRepublic Settlements 1 Haiti Cuba Argentina 27 Panama Brazil 3 Canal Zone 1 Chile Porto Rico Peru 1 Phili-Opine Uraguay Islands 2 Venezuela 7 9 4 3 2 1 1 1 In addition to the above, onc American bank has a pepresentative in Paris, one has an agency in Brazil and one a collection agency in Mexico City, and one American foreign banking corporation has two agencies in Haiti. *Includes g branches in China, 4 in Japan, 3 in India, 1 in Java, and 1 in Straits Settlements, which have since been taken over by a member bank from a subsidiary American foreign banking corporation. CLASSES OF .- BAN7S, BANYS OPERATI7G 3RAIllpS, DECEMBER 31, 1926; suir., P I.'ULATION 1ROUPS, AND STATES. State Number lumber of banks having of cities which 1 2 3-5 16-10 banks branch bran- bran- branches ches ches are located UNITED STATES 401 Total 74 National Member state 102 "Tonmember state 290 Mutual savinEl,s 2g Private 7 BAITS LOC_6TED 17 CITIES WITH POPULATION OF 100,000 or more 50,000 to 100,000 25,000 to 50,000 Less than 25,000 BRANCH BANK=G PERMITTED Arizona 7 50 California 4 Delaware Dist.of Columbia Georgia Kentucky 30 Louisiana 21 Maine 17 Maryland Massachusetts 4o Michigan 33 Mississippi 10 Nebraska New Jersey New York 15 34 North Carolina 21 Ohio lg Pennsylvania Rhode Island 5 South Carolina 5 Tennessee 15 Virginia 25 NEW BRANCHES PROHIBITED Alabama Arkansas Indiana Minnesota. Oregon Washington Wisconsin NOT 5 2 3 4 5 446 160 46 3o 210 in 57 12 14 4g St.734 Number , branche6 br:,nches Over In non10 bran- Totrl Totn1 conches territory 124 13 41 66 4 lg 90 ig 12 3o 11 789 2,777 1,92g 150 699 377 141 8 19 1,037 g9 237 195 394 449 41 433 2 5o 61 12 4 g 9 76 10 6 32 31 3 46 370 4 7 71 51 297 1 7 scd, 5 10 22 4 4o 1,715 111 241 97 g 23 57 3 32 59 2g 403 22 668 15 20 3g 12 104 24 4 12 78 114 132 1 1 2 4 1 1 3 1 3 5 2 2ii 2 ONE 5 7 3 Of the states shown above under the heading "Brancll Banking PermitteC,," Kentucky and Nebragka did not (on December 31, 1926) expressly provide for the establidhment of branches. No branches were reported in operation in the 20 states not shown above. Of these 20 states, West Virginia and Wyoming ,lermit branch banking, althourjh there were none in operation; Iowa, Kansas, Montana, New Hampshire, North Dakota, Oklahoma, South Dakota and Ver.lont IS not expressly prove for or prohibit extablishment of branches; and Colorado, Connecticut, Florida, Idaho, Illinois, Missouri, Nevada, New Mexico, Texas and Utah prohibit egtablishment of branches. BA:TYS OP7RATTITG BRADS, DECE"..73ER 31, 1926, BY CITIAW 'MICH LOCATED St, 5334 rumber of brDmches 1Tuml)cr of bafts iavir. Ir2diciaes --7 1077r f In In In head nonState,city or town, 3-5 ;6-10 I 10 1 2 tiu- ccntig, and branch bran- brnn- bran- brn- Total Total fice ous terriches ches .chos ches ropulation tory city territor7 UNITED STATES Total National banks ember state Nonmember state Eutual savings Private ARIZO:JA Total l!ember state Nonmember state Chandler 1,013 Nonmember state Flagstaff 3,186 Nonmember state Globe 7,044 Nonmember state Phoenix 38,669 Member state Prescott 5,010 Nonmember state Tombstone 1,178 ember state Tucson 26,733 Nonmember state CALIFORNIA Total National banks Member state Nonmember state Mutual Savings Alameda 31,876 Nonmember state Alhambra 5,021 National Alturas 979 Nonmember str,te Alvarado 1,032 Nonmember state Anaheim 5,526 Nonmember state Antioch 1,936 Nonmember state Auburn 2,289 Nonmember state Bakersfield 23,437 National Member state Balboa 810 Nonmember state Berkeley 66,209 Nonmember state Biggs 683 Nonmember state Bishop 1,304 Nonmember state 446 131 124 33 50 c;6 N 26 13 g s' 23 70 41 1.:" 12 50 11 1 235 41 b 4 3 65 4 _ 3 2 1 1 2 2 1 — _ 789 2,777 1,928 141 404 377 150 , 0 69 41 12 699 19 237 433 2 _ 1S5,1,363 1,037 394 923 449 75 61 50 9 12 4 1 22 22 5 12 10 12 10 1 1 1 4 4 1 1 2 1 1 s — 2 11 1 2 1 1 1 1 1 1 42 13 15 3 5 2 2 8 1 1 2 13 - 11 668 331 76 261 153 101 2 ; 15 16 85 75 353 143 4 55 1 50 225 14 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 2 2 1 1 1 1 1 2 )4- 4 1 1 1 1 3 28 - 2 2 2 i 111 2 2 2 1 1 1 1 1 7 1 3 7 1 3 3 BANKS OPERATING BRIIIVES, DECE:Tita 31, 1926, BY CIA, IN WHICH LOCATED Page 2 Number of banks he.ving branches 'Number of branches Over In In In State,city or town 1 2 3-5 6-10 10 heaa conand branch bran- bran- bran- bran- Total Total oftigupopulation ches ches ches ches fice ous city territory CALIFORNIA(Cont'd) Colusa 1,846 Nonmember state 1 3 Crockett 1,845 National 1 II Fillmore 1,597 Nonmember state 1 Fort Jones 331 Nonmember state 1 Grass Valley 4,oo6 Nonmember state. 1 Guerneville 800 Nonmember state 1 Hermosa Beach 5,000 Nonmember state 1 1 Jackson 1,601 Nonmember state 1 3 3 Lancaster 800 Nonmember state 1 Larndale 3,000 Nonmember state 1 Lemoore 1,355 National 1 Long Beach 91,182 National 1 Member state 1 Nonmember state 1 4 3 Los Angeles 674,641 National 2 2 6 65 3 3 Member state 144 77 2 30 37 Nonmember state 1 4 91 71 10 3 lo Merced 3,974 Nonmember state 1 11 Newman 1,251 Nonmember state II 3 3 Oakland 253,700 National 1 1 1 Nonmember state 1 1 2 11 11 Pasadena 56,732 National II 1 2 2 Nonmember state 1 1 2 2 Pinole 1,000 Nonmember state 1 1 3 3 Quincy 528 'Member state 1 III Sacramento 72,260 National 1 1 2 2 Nbnmemberstate 1 1 4 2 2 2 Salinas 4,308 Y.ember state 1 1 2 2 Nonmember state 1 1 1 San Bernardino 22,g23 Nonmember state 1 1 2 3 San Diego 106,047 Nonmember state 1 13 3 San Francisco 557,530 National 1 3 3 Member state 1 1 1 2 8 202 3 Nonmember state 1 2 1 4 4o Mutual savings 1 1 2 San Jose 43,551 Nonmember state 1 1 2 t,5334 ^ ^ ^ ^ owe 111 2: WHICH LOCATED Pq t:,e St.5334 BA7ITS OPER).TING BRASS, DECEMBER 31, 1926, BY CITIE 3 _ Numbor of branchps Numb3r of briks having branchos Over In i In In Stato,city or town 1 2 10 conhead non3 -5 bran- Total Total of- tigu- contig, and branch bran- branpopulation ous chos ches ches floe terriIcity torri- tory tory CALIFORNIA(Cont ,d) San Leandro 5,703 Nonmember state Santa Cruz 10,917 National Santa Monica 19,445 Nonmember state Santa Rosa 9,098 Nonmember state Sausalito 2,790 Member state Sebastopol 1,493 Nonmember state Stockton 47,287 Nonmember state Sussnville 918 Nonmember state Taft 3,317 Nonmember state Turlock 3,394 Member state Valley Ford 100 Nonmember state Walnut Creek 538 Nonmember state Woodland 4,147 Nonmember state 1 1 3 1 ii 1 1 3 1 - - - - 1 1 1 _ - - - 1 1 1 1 - _ - - 1 1 1 1 - - .... - 1 1 1 2 - - -- - 2 2 1 2 2 1 1 1 1 1 1 1 1 1 2 2 1 1 1 1 1 1 1 1 5 15 1 1 1 1 1 DELAWARE Total 1 ^ 1 1 1 2 1 1 1 - 2 1 1 - 4 1 1)4 - 1 - - - 1 2 2 - - 1 - - 1 3 3 - 1 - - - 1 2 2 1 - - - 1 - 1 1 1 7 2 1 2 15 5 1 Member state Nonmember state Dover 4,042 Uonmember state Georgetown 1,710 Nonmember state Selbyville 462 Nonmember state Wilmington 122,043 Member.state Nonmember state , 1)4 1)4 1 7 DISTRICT OF COLUMBIA Washington 497,906 National Nonmember state 3 5 GEORGIA 1 Total National Member state Nonmember state Private Atlanta 227,710 National Augusta 55,245 Nonmember state 1 1 1 4 1 - 10 - 1 2 1 1 1 1 22 1 3 6 7 15 12 1 14 2 2 0 :78 ; i 1 12 1 6 2 4 - 1 1 12 _ 10 - - 2 5 25 1 Ilk B.P.27.<-3 OPERATING BRA1 S, DE1,72ER 31, 1926, BY CITL!, IN "MICH LOCATED St.5334 Fe Number of banks hayingjp_rFnches Over 3tate,city or town 1 2 3-5 6-10 10 and branch bran- bran- bran- bran- Total population ches ches ches ches G20Ra1A (Contld) ..Erunswick 16,809 l!Lember state 15-3ford 2,500 Nonmem7oer state Cairo 1,908 Nonmember state Columbus 44,244 Nonmember state Cornelia 2,000 Nonmember state Douglas 3,401 Nonmember state Douglasville 2,159 Member state Folkston 397 Nonmember state Glenwood 592 Nonmember state Greenville 760 Member state Hahira 864 Nonmember state LupPkin 934 Nonmember state Mt. Vernon 722 Nonmember state Pelham 2,640 Member state Rome 13,905 National Savannah 93,134 Member state Nonmember state Senoia 906 Private 1 Total Number of , 1 r4nes in. In In head connonof- tigu- contig, fice terrious city terri- tory tory 1 2 1 1 1 1 1 1 1 2 1 1 1 2 2 1 1 1 1 1 1 1 1 1 1- 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 10 1 2 1 1 2 1 1 1 1 •••• 1 2 KENTUCKY Louisville 259,259 National Member state • 2 1 1 1 7 5 4o io4 52 1 51 31 45 51 39 13 17 8 6 37 1 1 1 1 1 1 ^ 3 7, 5 ^ LOUISIANA Total National Member state Nonmember state Alexandria 20,651 Nonmember state Arabi 262 Nonmember state Arcadia 1,240 Nonmember state Bogalmsa 8,245 Nonmember state Colfax 1,449 Nonmember state Coushatta 962 Nonmember state . 4 214 6 5 2 22 1 2 5 3 1 2 1 1 1 1 1 1 1 1 1 1 ^ 1 1 S BANKS 0P7RZTING BRANCHES, LIME= 31, 1926, BY CITIES sr WHICH LOCATED St.5334 Page 5 Num:oor of lornks having branches NII:abr of branch:s. Ovar In In In Sts,to,city or town, 1 2 10 con6-10 nonhead nnd branch bran- bran- bran- bran- I Total Total of- tigu- contig, po-oulation • ches Iches ches ches flea ous terncity tern- tory tory LOUISIANA Cont 'd.) Covington 2,942 Nonmember state Crowley 6,108 Nonmember state Frvnklinton 964 Nonmember state Gretna.7,197 Member state Nonmember state Haynesville 903 Nonmember state Homer 3,305 Nonmember. state Houma 5,160 Nonmember state Lafayette 7,655 Nonmember stnte Lake Charles 14,015 National Leesville 2,518 Nonmember state Mansura 829 Nonmember state Many 663 Nonmember state Marksville 1,185 Nonmember state Napoleonville 1,171 Nonmember state New Orleans 414,493 Member state Nonmember state Opelousas 4,437 Member state Nonmember state Port Allen 920 Nonmember state Shreveport 57,857 • Member state Nonmember state St..Joseph 734 Nonmember state Sunset 433 Nonmember state Thibodaux 3,526 Nonmember state Vidalia 1,206 Nonmember state Ville Platte 1,364 Member state Nonmember state Winnsboro 1,176 Nonmember state 2 2 1 1 2 2 1 1 1 2 2 1 1 1 1 2 2 2 2 1 1 1 1 1 1 1 1 1 1 5 1 1 1 1 1 1 3 1 1 3 1 1 1 1 1 1 1 4 1 38 1 1 1 1 1 1 1 1• 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 1 2 2 1 2 3 -z 1 1 1 1 ^ 1 1 2 1 1 38 1 , DECMBER 31, 1926, BY CITI411..T WHICH LOCATED Page 6 St.5334 Number branches havint, of branches Number of banks Over In I In In 10 connonihead State,city or town, 1 2 3-5 6-10 branch bren- bran- bran- bran- Total Total l of- tigu- contig, and. !flee ous terriPopulation ches chos ches 1 ches city terri- tory tory BLrxs OF:RATING BRAIlk1 i Total rember state Nonmember state Augusta 14,624 Nonmember state Bangor 26,644 Member state Nonmember state Bar Harbor 3,622 Nonmember stpte Belfast 5,083 Nonmember state Calias 6,084 Nonmember state Dover-Foxcroft 2,071 Nonmember state Ellsworth 3,058 Member state Fort Kent 4,237 Nonmember state Guilford 1,687 Nonmember stnte Lewiston 34,390 Nonmember state Lincoln 1,586 Nonmember stte Oldtown 6,956 Nonmember state Patten 1,498 Nonmember state Portland 75,333 Member state Nonmember state Rockland 8,109 Nonmember state Rumford 9,224 Nonmember state Sanford 11,621 Member state Skowhegan 5,981 Nonmember state South Paris 1,793 Nonmember state WeRtbrook 9,873 Nonmember state York Village 1,230 Nonmember state l'ARYLAND Total National Member state Nonmember state Mutual savings Annapolis 12,633 Nonmember state 5 9 214 53 14 20 11. 5 3 6 42 10 38 1 5 5 1 1 14 •3 1 2 1 3 3 1 1 1 1 2 2 1 3 3 1 1 1 1 2 2 1 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 1 1 14 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 1 2 2 36 111+ 10 1 9 ^ 1 1 1 ^ 1 1 1 ^ 1 ^1. 1 1 1 1 1 18 5 2 2 3 - 13 3 1 9 1 8 - 2 1 1 - 3 1 1 1 1 ^ 3 14. 6 6 2 26 -14 19 19 16 15 1 2 3 1 58 73 16 2 14 3 5 51 4 51 1 2 11/ BANKS OPERATING BRAN - S, DECE/LBER 31, 1926, BY CITIES IN WHICH LOCATED St.5334 Page 7 Numb7Ir of bans having "branches Numb3r of branches Ov:Ir Ii In In Stpte,city or town, 1 2 3-5 6-10 10 conhead nonand branch bran- bran- bran- bran- Total Total of- tigu, contig. Population ches ches ches ches fice o1-is terricity terri- tory tory laRYL,'ND (Contld) Baltimore 796,296 National Member state Nonmember state n'utual savings Bel Air 1,091 Nonmember state Cambridge 7,467 Nonmember state Chestertown 2,537 Nonmember stF.te Crisfield 4,241 Nonmember state Elkton 2,660 'Nonmember state Frederick 12,035 Nonmember stpte Hagerstown 31,357 Nonmember state Hillsboro 222 Nonmember stnte Hyattsville 2,675 Nonmember state Overlea 1,500 Nonmember state Rockville 1,145 Nonmember stnte Seat Pleasant 3,000 Nonmember state Sparrows Point 4,025 Nonmember state Takoma Park 3,168 Nonmember state Towson 3,530 Nonmember state 2 2 2 2 ^ 1 1 1 4 6 2 19 16 16 1 1 3 1 ^ 1 1 2 2 6 19 15 15 1 1 1 3 3 1 20 20 3 7 7 2 1 1 2 2 1 1 2 3 8 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 •IZZSACHUSETTS Total National Member State Nonmember state Mutual savings Adams 13,525 National Arlington 25,155 Mutual savings Belmont 15,256 Nonmember state Mutual savings Beverly 22,701 Nonmember state Boston 781,529 National Member state Nonmember state Mutual savings 58 10 7 2 1 78 132 116 9 2 2 2 1 10 20 3 3 3 49 28 24 31 49 27 19 16 16 22 24 2 2 ^ 1 1 22 18 2 2 1 1 1 1 1 1 1 1 1 1 1 1 36 36 10 2 3 1 1 2 1 11 1 1 1 13 7 6 2 2 10 2 3 3 3 ^ 3 1 2 /II BANKS OPERATING BRA. S, DFCEI,1711 31, 1926, BY CITIt Number of banhs Ilavin branches 0 State,city or town, 1 3-5 6-10 and branch bran- bran.- branpopulation ches ches ches Total N WHICH LOCATED St.5334 Page 8 Number of branches In In connencontig. terrious terri- tory tory MASSACHUSETTS(Contld) Brockton 65,731 National Nonmember state Brookline 42,633 Nonmember state Canbridge 120,053 L:ember state Nonmember state Fall River 129,662 Nonmember state Fitchburg 44,o34 rational Member state Mutual savings IJ Gardner 18,770 Nonmember state Harwich 1,846 Mutual savings Holyoke 60,892 Member state Lawrence 95,136 Mamber state Lowell 110,542 Mutual savings Lynn 103,147 Member state state Nonmember. Mutual savings Medford 47,627 Nonmember state Mutual davings Melrose 2,148 0 Nonmember state Needham 7,012 Nonmember state New Bedford 120,494 National Mutual savings Newton 53,364 Member state Newton Center 7,425 Mutual savings No. Attleborough 9,238 Mutual savings Palmer 10,359 Mutual savings Pittsfield 47,241 Mutual savings Plymouth 13,178 Mutual savings Quincy 60,131 Member state Nonmember state Rockland 7,544 Nonmember state Somerville 99,206 Nonmember state Mutual savings South Weymouth 3,036 Nonmember state 1 1 ^ 2 1 1 2 1 1 1 1 1 1 - - - - - - - - - 1 3 3 2 2 1 1 1 1 1 1 1 1 1 ^ 1 1 1 1 1 1 1 1 1 1 1 - - - 1 - - - 1 - - • 1 1 1 2 - 1 1 1 2 1 1 2 1 1 2 2 1 . 1 I 2 1 2 1 1 1 1 1 1 1 1 1 I 3 3 3 3 5 5 1 1 . 1 1 1 .01 1 ^ 1 1 2 1 1 1 1 - 1 - 2 1 1 - - - - - - 2 1 2 1 1 1 1 11 1 1 1 1 1 1 ^ 22 1 1 2 1 1 2 2 1 1 BAITS OP:RATING BRAN.1111, D.7,CE!SER 31, 1926, BY CITI: 7HICH LOCATT27 st,5334 Pogo 9 Nur::b,Ir of b'T..nks_having -1;. rrAnchos Number of -trarhes Over In In In ;" Stn.te,city or town, 10 1 :lead noncon2 . 7-) 6-10 and branch brnn- brnn- bran- bran- Total Total of- tiga- contig. ponulption fice terriches chas ches chos OUS city terri- tory tory kkSS.LCHITSETTS(Cont Springfiold 142,224 1 1 1 1 1 1 1 1 Nonmember state Uxbridge 5,3g4 Muturl savings Wakefield 15,611 Mutual savins Waltham 34,926 ::ember sta4 ,e ., Ware 8,525 Mutual savings 7;arehnm )4,415 Mutual savings 7iatertown 25,480 National Wellesley 6,224 Err-tional Whitinsville 6,090 Mutual savings Worcester 192,242 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 1 1 1 1 1 1 3 1 3 1 3 1 1 1 Member state Nonmember state Mutual savings 7 1 1 ^ 1 1 MICHIGAN Total Uptionnl Member state Nonmember state Private Adrian 12,50g Member state Albion 9,261 Member state AlDena 11,101 Member stote Ann Arbor 22,17g Member state Nonmember state Baldwin 471 PrivateBattle Creek 42,336 NPtional Nonmember state Bay City 48,907 Member state Nonmember state Detroit 1,242,044 National Member state Nonmember state Ecorse 10,000 Nonmember state Flint 130,316 National Member state rordson 1,519 Nonmember state 36 10 0 4 12 , CO 7077 .1 1 390 2 1 - 11 i,_ 11 34 20 20 20 72:! 327 _451 11.7, 2 - - 9 1 13 12 5 3 2 4. 2 1 - 3 5 1 4 1 1 1 1 1 1 1 - - _ _ 1 _ - - _ 1 _ _ _ _ 1 1 1 1 1 li 1 1 •1 - 3 3 1 1 2 1 '4 2 L. 4 3 10 3 261 19 261 19 1 1 1 1 1 1 1 3 1 10 1 10 1 1 1 1 1 1 1 1 9 1 1 . 7HICH LOCATED I, DECE:.1"3R 31, 1926, BY CITIESill BAITS OFTRATING BRAMII Pp.ge 10 St.5334 Number of brrinclies Numbr of banks hvir.cr 'cranchos In In Over noncon10 6-10 1 State, city or town 3-5 contig. bran- bran- brful- Total Total branch and terrious ches chbs chas 7?opulation terri- tory tory MICHIGAN (Contld) Grand Haven 7,205 Member state Grand Rapids 153,698 Member state Grosso Pointe Pk.1,355 Nonmember state Hamtramck. 81,731 Nonmember state Highland Park 72,289 Member state Nonmember state Ionia 6,935 Menb3r state Jackson 57,972 Nationnl Kalamazoo 53,613 Nonmember state Lansing 79,753 Mombor state Leonx 380 Member state Ludir„ston 8,810 NPtionpl it) state Menominee 8,907 Momber state Monroe 14,224 Menber state Muskegon 43,0S8 Nn.tion.11 Nonmember state Oscodp 1,122 Private Plymouth 2,857 Nonmember state Pontiac 47,455 Member state Port Huron 29,954 Yember state Nonmember state Saginaw 72,100 National Member stpte Shelby 1,288 Private Three Rivers 5,209 Nonmember state Wyandotte 23,771 Nonmember state 1 1 1 2 26 1 3. 1 r0 4 1 1 1 1 1 1 2 II 1 1 1 1 1 2 2 1 3 3 1 2 2 1 1 1 1 2 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 2 1 1 II 2 1 1 1 2 1 2 2 1 1 ^ 2 2 1 1 1 2 3. II 4 4 1 1 1 1 3. 1 1 1 11 1 1 11 2rj 1 MISZISSIPPI Total National Member state Nonmember state Batesville 1,050 Nonmember state 7 3 1 1 6 1 3 LI hi DECEI,i7R 31, 1926, BY BATYS OPMATING BRAN THICH LOCATED CITIEIII ,t,5334 rae 11 rulit3r of branches branches 1 In 1 In Over In 10 '3-10 head r'.on2 non1 State,city or town, branch bran- brar- bran- brnn- Total Total of- tiEu- contig. and ches che3 ches ches rice ous terriropulation city iterntory , I tory Yumb::::: of bank2 havin MISSISSIPPI (Contld) Day St. Louis 3,033 ! Nonmember stot, Elue Mountain 654 Nonmember state 1 Grenaia 3,402 Member state Holly Sprins•2,113 Nonmember state 1 Jackson 23,698 Nonmember stte 1 Macon 2,051 Nonmember state 1 Moss Point 3,340 1 Netional Pascagoula 6,082 Nonmember state 1 Tupelo 5,055 Nonmember state NEBRASKA Omaha 211,768 National 2 - - ? 1 1 - - 1 1 12 - - 12 1 1 - - 1 1 1 1 1 1 1 - - 1 1 - - 1 1 - - 1 1 ^ 1 14 2 2 2 2 2 13 20 10 8 2 2 3 1 2 2 1. ? 4 1 1 NEW JERSEY Total Nation?.1 Member state Nonmember stnte Asbury Park 13,674 Nonmember state Bayonne 88,767 Nonmember str.te Camden 128,642 National Nonmember state Last Orange 59,967 Member state Nonmember state Jersey City 315,280 . National stete Member Nonmember state Newark 452,513 Member state Paterson 141,695 Member state Union City 63,117 Member state 8 14 1 1 2 4 3 1 1 3 1 9 5 1 1 - 1 1 1 1 - - 1 1 1 1 1 1 1 2 , 1 1 1 1 1 1 1 1 1 - - 1 2 2 1 1 1 1 3 - 2 2 1 - 1 1 1 1 - - 1 1 1 1 - - 1 1 1 1 NEW YORK Total National Member state Nonmember state Mutual savings Private 47 12 o J o , 14 3 13 19 15 0 c_ 13 7 4 1 - 12 1 7 5 5 1 2 10 1 )- 2( 1 _25 -48 23 286 74 14 5 128 26 74 14 4 1 BANKS OPERATING 34107S, DECEMER 31, 1926, BY CITIII/IN WHICH LOCATED Page 12 St.5334 Number of branches Number of banks having ranches In Over In In nonconhead State,city or tom, 1 2 3-5 6-10 10 and branch bran- bran- bran- bran- Total Total of- tigu- conti3. ternous fice population ches ches ches ches city tern- tory tory YEW YORK (CON'D) Albany 113,344 National 1 Nonmember stnte 1 Buffalo 538,016 National Member state 1 Private Kingston 27,049 Member state 1 Mt. Vernon 50,382 Nonmember st.,te New Rochelle 44,222 1 Nonmember state New York 6,500,000 45 National 2 Member state 6 Nonmember state 13 Mutual savings 2 Private Niagara F-11s 57,033 1 Member state North Tonowanda 17,356 1 Nonmember state Rochester 316,786 Member state Nonmember state Mutual savings 1 Schenectady 92,786 1 Member state Syracuse 182,003 National 1 Member state 1 Troy 72,223 National 1 _ _ _ - _ _ 1 _ - 4 1 - _ • 1 1 1 1 _ 1 2 2 - _ 1 1 1 4 3 5 10 19 24 17 13 115 212 175 212 64 64 1 1 1 1 3 2 1 5 1 5 4 2 5 56 1 1 13 1 _ - _ 1 _ - 1 _ _ 1 1 _ - 3 L. 4 L. L. - 1 1 1 3 1 3 1 _ _ 1 1 1 1 - 1 3 1 0 - - 1 1 1 1 3 2 2 3 1 - 3 3 1 - 1 1 1 _ 1 1 1 1 2 2 2 2 NORTH CAROLINA Total 25 6 4o 74 National Member state Nonmember state 2 2 21 1 1 1 4 7 ^ 1 33 L. 9 61 - - - 1 1 1 ^ ^ Utica 101,604 National Member state Watertown 32,836 National Yonkers 113,647 National Nonmember state . . Aberdeen 858 Nonmember state Akoskie 1,429 Nonmember state Asheville 31,474 Nonmember state Avondale 525 Nonmember state Biltmore 172 Nonmember state - 64 1 3 2 56 6 6 1 3 3 1 - 1 1 - 1 1 1 1 1 1 BA:KS OPERATING BRAN, DECE=R 31, 1926, BY CM: WHICH LOCATED t.5334 Page 13 Number f banks havincv; branches Number of branches 'Over In In In State,city or town, 1 2 3-5 6-10 10 conhead nonand branch bran- bran- bran- bran- Total Total of- tigu- contig. noloulation ches ches ches ches fice ous terricity terri- tory torv NORTH CAROLINA (Cont Id) 2,onlec 178 Nonmember st-to 1 Chapel Hill 1,1483 Nonmember stte 1 Concord 10,331 Nonmember st-te a,nbury 410 Nonmember st7te Durham 42,258 Yonmambor strtc 2 Elizabeth City 9,208 Member state Erwin 518 Nonmember strite 1 Fayetteville 9,537 Nonmember stnte 1 Forest City 2,312 Member state 1 Gastonia 16,899 Nonmember st-to Greensboro 47,132 National Nonmember st,to Greenville 5,772 Nonmember stto 1 Hendersonville 3,720 Nonmember state 1 Leaksville 1,606 Nonmember st,te Marshall 748 Nonmember st,te 1 Yooresboro 228 7onmember st,te 1 Mt. Airy 4,752 Nonmember sti-te 1 Mt. Olive 2,297 Nonmember st,te 1 New Bern 12,218 Nonmember st,te Rutherfordton 1,693 Nonmember state Sanford 2,977 Nonmember state Shelby 3,609 Nonmember stote Stanley 584 Nonmember state 1 Tarboro 4,563 Member steta 1 Wallace 64g Nonmember state 1 Wendell 1,239 Nonmember state 1 Whiteville 1,664 Nonmember state 1 Wilson 12,818 Nonmember strte 1 Winston-Salem 69,031 National 2 Member stFA. , 1 1 1 1 1 1 1 - 1 3 - 3 3 1 3 2 2 1 2 2 1 1 1 1 1 1 1 1 1 1 3 3 1 2 1 5 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 5 5 1 1 2 2‘ 1 1 2 2 1 3 3 1 1 1 1 1 1 1 1 1 1 1 1 2 5 5 2 1 2 0 5 1 1 1 1 1 2 1 1 1 1 1 14 BANKS OPERATING BRANCHES, DECETIBER 31, 1926, BY CITIES IN IHICH LOCATED Pn.ge 14 St. 5334 Number of banks hnvins branches Number of branches OvDr In In In Stato,city or town, 1 2 6-10 10 head connon3-5 and branch bran- bran- bran- bran- Total Total of- tiga- contig. population ches ches ches chos fice ouz torn city torn- tory tory OHIO Total 24 13 6 52 227 194 22 11 5 Notional Member state Nonmember st, te Akron 208,435 Member state Nonmember st-te Berea 2,959 Nonmember state Berlin Heights 514 Nonmember state C-nton 106,260 Nonmember state Cincinnati 409,333 Member state Nonmember state Cleveland 936,485 National Member state Nonmember state Columbus 279,836 Member state Columbus Grove 1,768 Nonmember state Conneaut 10,336 Member state Dayton 172,942 Nonmember state Findlay 18,246 National Nonmember state Jackson 5,842 Nonmember state Lima 46,717 Nonmember state Lockland 4,007 National Martins Ferry 15,549 Nonmember state Marysville 3,635 Nonmember state Middleton 30,823 Member state Minerva 2,261 Member state Toledo 287,380 Member state Nonmember state Troy 7,260 National Youngstown 159,970 Member state 5 5 5 5 158 64 131 2 7 4 5 4 1 1 1 1 1 1 1 4 4 6 5 34 32 12 12 14 4 1 6 7 1 1 1 - 1 1 3 1 - - 1 - - - 1 ^ 2 2 - 2 - 3 2 - - 1 1 3 _ - - - - - 1 1 - 1 - - - - - 1 1 1 1 22 25 3 3 2 2 14 5 58 2 2 3 84 3 65 3 1 10 10 1 1 1 1 2 lo lo - 1 1 1 1 1 1 1 - 1 1 1 - 1 1 1 1 - 1 1 1 1 - 1 1 1 1 - 1 1 - 1 1 2 1 - 1 1 1 - 1 3 4 14 14 23 22 1 - 1 1 1 1 - 2 5 3 2 - ^ - 1 1 1 - 1 2 - 20 2 7 4 2 2 15 4 -1 1 1 1 1 ^ 2 1 1 2 ^ • BAITS OPERATING. BRANCHES, DEC7Y3ER 31, 1926, BY CITIES 17 WHICH 1,0C2.T71.7 St.5334 15 Numbar of brnks .„):7nch,s 7uor of 101--,,nch'„s Over In In In StPt3,city or town, 1 2 6-10 10 head connon3-5 and brpnch brnn- brnn- brrn- brrm- To t1.1 Total of- tiGu- contig. 7oo-o111ntion ches 'chcs chos ches fice ous tern city tern- tory tory PanTSYTIA Total Netional Member state Nonmember state Mutual savings Private 57 15 11 83 127 118 3 6 16 13 24 3 1 4 1 10 - 1 21 17 39 5 29 25 29 23 56 10 1 2 - 1 4 Altoona 66,148 National 1 Ardmore 20,000 Nonmember state Bethlehem 62,828 Nonmember state Chester 68,507 Notional 2 Member state 1 Nonmember state 1 Conshohocken 8,842 Nonmember state 1 Glenside 1,831 Member state 1 Nonmember state 1 Hazleton 36,143 Member state 1 Johnstown 71,475 Notional 1 1 Nonmember state :cKees Rocks 18,077 National 1 Media 4,109 Nonmember state Norristown 34,836 Member state 1 Philadelphia 1,979,364 National 10 Member state 6 Nonmember state 16 Mutual savings 3 Pine Grove 1,778 Private 1 Pittsburgh 631,536 Nonmember state 2 Reading 112,707 National Member state 2• Nonmember state Salix 219 Nonme:nbar state 1 rbr 528 q-mer Nonmember state 1 Williamsport 42,656 Netional 1 Member state 1 3 5 2 62 10 1 1 1 2 3 1 1 2 1 1 2 2 1 3 1 1 14 14 1 1 1 1 1 1 3 2 1 1 - _ - 1 1 1 1 - - - 1 1 - _ 1 1 1 1 1 1 1 1 1 1 2 1 1 2 12 7 9 27 14 16 44 1 2 1 10 1 2 14 16 44 lo 1 1 2 2 1 1 5 5 2 14 2 1 2 1 1 1 1 1 1 1 1 2 3 1 3 2 14 1 BANYS OPERATING BRAOFS, TECE75147R 31, 1926, BY CITI/11117 WHICH LOCATED St.5334 Page le Number of branches Number of banks havin branches Over In In 10 2 1 State, city or town 6-10 noncon3-5 branch bran- bran- bran- bran- Total Total and tigu- contig. ches ches ches po2ulation terrious ches terri- tory tory RHODE ISLAND Total 27 lo 6 1•1 9 Member state Nonmember state Mutual savings Providence 267,918 Member state Mutual savings South Kingston (Wakefield) 2,716 Nonmember state Westerly 11,177 Nonmember state Woonsocket 49,681 Nonmember state Smithfield (Greenville) 1,230 Mutual savings SOUTH CAROLINA Total National Member 'state Nonmember state Aiken 4,103 Nonmember state Charleston 73,125 National Member state Chesterfield 856 Nonmember state Florence 13,182 Member state Marion 3,892 Nonmember state TENNESSEE Total National Member state Nonmember state Bells 1,025 Nonmember state Bolivar 1,031 Nonmember state Bristol g,370 Nonmember state Chattanooga 66,575 National Nonmember state Covington 3,410 Nonmember state Jefferson City 1,414 Nonmember state Johnson City 14,362 N7.tional 4 3 22 7 4 3 2 2 2 1 2 11 1 22 1 II 1 1. 3. 1 1 1 3. 1 1 II 1 1 11 3. 1 7 25 - 1 - 3 2 2 1 1 ^ 2 2 1 2 1 2 2 2 6 11 2 3 2 19 1 9 9 1 4 4 1 1 II 1 2 2 22 56 24 1 6 9 9 1 II 15 2 45 2 13 1 1 - 1 3 ^ 2 1 ii 1 1 1 13 4 4 1 -1 2 9 1 1 1 1 "PM 2 2 1 1 31 3 11 • 1 1 1 2 1 6 1 1 1 3. 1 11 1 1 1 1 6 1 1 BA.17S OPZRATING BRAks, DEcE:an 31, 1926, BY CIT 71HIOH LOCATED St.5334 FJ,r, . 17 Number of bi-mks havinL. branches rumr of branch3s ! I 10v2r I In In In Stnte,city or town 1 2 3-5 s-lo 1. 1 lo head connonand branch bran- brn- br.7...n-lerzai- i TotTotal of- tiu- contikl. ponulation ches cies chos 'dhos fice ous .terricity t3rri- tory 1 tory 1 7ENNESSE. (Cont'd) Knoxville 95,464 N::.-tional Nonmember state Livingston 1,215 ronmember state Yer=his 174,533 :.lamber state L:onterey 1,445 Nonmember state Nashville 136,220 National Nonmember state Trenton 2,751 Nonmember state Waynesboro 775 Nonmember state Winchestr 2,203 Nonmember state 1 1 - - - - 1 1j 1 1 1 - - - - 1 1 - 1 , - - - 1 •2 1 - - - - 1 1 1 1 - 1 - - 3 3 6 6 2 211- 12 1 - _ _ - 1 1 1 1 - - - - 1 1 1 - 1 - - - 1 21 2 1 1 1 2 12 VTRGITTIA Total 25 Nationl 6 Liember state 1 Nonmember state 13 Abingdon 2,532 National 1 Bedford 3,243 Nonmember state 1 Charlottesville 11,211 MItional 1 Cherr,rdale 2,520 Nonmember state Clintwood 450 Nonmamb-r state Columbia. 200 Nonmember state Drekes Branch 560 ✓onmamber state 1 Falls Church 4,759 Nonmember state 1 Gloucester 262 Nonmember state 1 Keller 223 Nonmember state 1 Yeysvil13 493 Nonmember state 1 Lebanon 469 ronmomber state 1 Leesburg 1,545 National 1 Louisa 239 Nonmember state 1 rorfolk 164,105 National 2 Nonmember state 3 Parksley 601 Nonmember 'state Portsmouth 59,029 Nonmazber state 1 34 37 59 23 4 27 1 1 - - g 12 10 - 2 - - - 2 27 6 6 7 1 2 41 12 4 25 - - - - 1 1 1 - - - - - _ 1 1 - - 1 - - - ii 1 1 - 1 - - 1 2: - - 1 2 1 2 1 1 1 1 • 1 1 1 • 1 1 1 1 1 1 1 1 1 1 2 2 2 4 5 3 1 2 1 1 1 • 1 : 4 " , • • II. , III OfaltRATIITC- BRAITCH ••* ititak Ct , DEC7 3:ER 31, 1926, EY CITIES IiICH LOCATE. Page 16 St.533)4 'Jura-oar of benks havin . branches Numb:1r of branches Cvor In In In Stato,city or town 2 1 3-5 15-10 10 conhead nonand branch bran-lbrrm-lbrpn- bran- Total Total ofcontig. + poTmlation ches chos i chos chos fice terrious city terri- tory tory VIRGINIA (Cont td) .• Radford 4,627 Nonmember state 1 1 1 1 Richmond 190,000 National 1 1 2 6 6 Member state 1 1 6 2 6 Nonmember state 1 4 1 2 12 9 3 Staunton 10,633 Nonmember state 1 1 1 1 Tcopohonnock 422 Nonmember state 1 1 2 2 Urbelina 387 Nonmember state 1 1 Wakefield 784 Nonmember state 1 1 2 2 Warrenton 1,545 Nationpl 1 1 1 1 Williamsburg 2,462 Nonmember state 1 1 1 1 OMB .ALABAMA Total Member state Nonmember state Athens 3,323 Nonmember state Decatur 4,752 Nonmember state Enslcy 9,037 Honmembor state Goorgiana 1,550 Nonmember state Guin 596 Member state • 4 _ _ 5 19 1 3 _ _ _ _ 1 4 1 18 - _ _ Nonmember 18 _ 1 1 17 1 1 1 1 1 1 1 1 15 15 ARKANSAS Total Nonmember state Prescott 2,691 1 3 1 1 3 ^ 1 Yellville 615 Nonmember state 1 1 1 2 2 INDIANA Total Member state Nonmember state . Clay City 1,226 Nonmember state Fort Wayne 97,846 Nonmember state Indianapolis 358,819 Member state Nonmember state 1 3 3 1 1 1 1 1 5 3 5 2 1 1 1 1 1 1 5 1 5 1 1 1 • A BAYTrS Or-MATING BRANCHES, DECEMBER 31, 1926, BY CITI Number of banks n:-.ving bra...)ches Over In State,Aqty or town, 1 2 10 3-5 S-lo head .and branch bran- bran- br.?n- bran- Total Total ofIpoiDulation ches ches ches ches fice city LOCAT7D Pa.,;e 19 of branches In In connontigu- contig. ous territerri- tory .• tory MINNESOTA lanneapolis 425,430 rational OREGON Milton 1,747 National 2 1 2 0 1 1 WASHINGTON Total Notional 4gMber strte Wimember state II 1 1 2 1 WISCONSIN Total 5 1 7 Cle Elum 2,661 .ronmember state Colville 2,000 Nonmember state Everett 30,000 Member state Seattle 400,000 rational National Member state Nonmember state De Pere 5,165 Nonmexber state Ellsworth 1,043 Yember state Madison 46,385 Member state Yilwaukee 509;192 Netional Member state Sturgeon Bay 4,553 I.:ember state 6 1 ^ 1 2 1 2 3 2 2 1 2 1 Ii 1 1 1 1 1 • 2 4 11 2 3 7 9 2 2 5 6 5 1 3 1 1 1 1 1 1 II 1 1 1 1 1 2 1 1 2 Forrp No. 13t. Office Correspo ence To Mr. Hamlin From Mr.. Goldenweiser FEDERAL RESERVE BOARD • Date Subject: May 3, 1927 Status of gold standard in certain countries The United States and Canada are the only countries in which the gold standard in the fullest meaning of the term is completely in operation at the present time. The elements that enter into the full operation of the gold standard are: (1) Freedom of exports and imports of gold; (2) Redemption of paper money in gold; (3) Obligation of government to purchase all gold offered at a fixed rate; (4) Obligation to mint all gold offered into coin; and (o) Freedom of gold coins in circulation. While there is not much gold coin in circulation in this country, there is no obstacle in the way of any individual who wishes to obtain gold coin and to pay it out into circulation. In all the other countries of the world there is at the present time some limitation upon the gold sta_Idard. this respect. Several gradations have developed in Some countries have adopted the gold bullion standard; some the gold exchange standard, and others have left the management of the gold Policy in tie discretion of the central bank. .1;ngland. During the war England did not formally suspend the gold standard, but accomplished the same result by administrative methods. In 1920 gold exports were formally prohibited and in 1925 the gold standard act once more permitted them. By this act the Bank of England is obliged to sell gold freely in bars of approximately 400 ounces (worth about V8,000) of fine gold at the price of Ir3 17s 1*. This establishes in &ngland the gold bullion standard. Bank of England notes are not redeemable in gold and the mint is under no obligatio n to coin gold bullion presented to it by anyone except the Bank of England. Volume 170 __Page 57 • "(Tem N.131. Office Correspe To From 2.-096 -2Germany According to the bank law of August 30, 1924, Germany is on the gold exchange standard, becaase the Reichsbank notes are redeemable "in gold or gold coin at par or in foreign exchange at the current rates of exchange." This provision, however, is not to go into effect until 90 voted by a con- current resolution of the managing board and the general cou_cil of the Reichsbank. For the present, therefore, Germany is not on the gold standard nor on the gold exchange standard. Netherlands In the lletherlands the central bank has discretion in redeeming its notes and in selling gold for export. In practice, gold is sold only when foreign exchanges are above Parity and only for export to such countries as perLlit the free export of gold. Dr. Vissering told me, for instance, that they refuse to sell gold for export to Germany. Switzerland In Switzerland the matter of the redemption of notes and the export of gold is largely left to the discretion of the national bans. In view of conditions in the country during the past few years, the gold standard has been in practical operation, but as a matter of law Switzerland is not on the gold standard. Sweden By the provisions of the act of April 1, 1924, the Riksbank resumed specie payments and its notes became redeemable in gold. The embargo on gold exports has been removed, but gold imports are s:ill under the control of the central bank. • Fpriu No. 131. 'Office CorrespaRience FEDER AL RESERVE BOARD To_ • Subject: ____ From — 3 — Canada On June 30, 1926, Canada returned to the gold sta ndard. On that day the war-time provisions suspending the redemptio n of Dominion notes in gol d and restricting gold export s expired by limitatio n. Japan In Japan the export of gol d, except under specia l liscense, has been prohibited since September 12, 1917. While the not es of the Bank of Japan are legally redeemable in gold, they have not been actually so redeemed sin ce the outbreak of the wor ld war. Form No. 131. Office Corresporance To Mr. Hamlin From MY. Goldenweiser FEDERAL RESERVE BOARD • May Date 4, 1927 Subject: 2—S495 I transmit herewith a memorandum from Mr. Cummings, which shows that the statement in the New York Times that Canada had prohibited exports to the United States was Volume 170 Page 61 a mistake. For 11 Sio. 131. Office Correspontnce TO Mk Goldenweiser From Mr Cummings FEDERAL RESERVE BOARD • Ate May 4 1927 Subject: The following note, which appeared in The nonetary Times of Canada for March 11, may explain the newspaper statement which NI% Hamlin has in mind. Under the heading "No Gold Etbargo," a statement issued by the Canadian Department of Finance is quoted as follows: "With reference to rumors which have been published in certain New York newspapers that Canada has placed an embargo an gold shipments, Hon. J. A. Robb, Minister of Finance, who is confined at his home in Valleyfield, Que., by illness, on being communicated with, stated that the rumors were absolutely without foundation. He said that the question of an eLibargo had not even been considered and that the situation is normal, namely, that if the banks wish gold for any purpose whatever, they may secure it from the Department of Finance as unusual on the presentation of Dominion notes. The department is at a loss to understand haw the rumor can have orig- inated." The rumor which is denied in the above quotation was published in the hew York Times of /larch 8, and probably in other Lew York papers. The Times noted that word had been received by New York banks that the Government of Canada had announced its refusal to permit further shipments of gold from the Dominion to the United Statesputd that this report had resulted in further depreciation of Canadian exchange. "It is understood," the Times continued,"that the Canadian Government took the position that the supply of gold 'earmarked' for possible shipment to the United States had been exhausted and that further transfers would involve the use of the Dominion's reserve." • • FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD 7, 1927, st. 5361. May SUBJECT: Condition of Member . .1ak.s as of March 23, 1927. Duar Sir: 7or your information there is enclosed herewith a preliminary statement regarding the condition of all member banks combined as of March 23, 1927. The Board's Member Bank Call Report (No. 35) showing detailed figures for all member banks and for State bank members will be ready for distribution in the near future. Very truly .7ours, - F. M. IcClelland, Assistant Secretary. Enclosure ; Volume 170 Page 87 LETTER TO 2..LL FTDERAI RES-SRVE 1.77FTS* Lat re) CONDITIOAD ME1.512 BANKS NS OF MARCH 23,.7 St. 5361a Loans and investments of all member banks on March 23 aaregated $32,154,000,000, an increase of $258,000,000 since December 31, 1926, the preceding call date. Reserve city banks reported an increase of $326,000,000, country banks $82,000,000, and Chicago central reserve city banks $23,000,000, while New York central reserve city banks reported a decrease of $171,000,000. Loans and discounts 1:ncluding overdrafts, totaled $22,532,000,000, a decrease of $374,000,000 since December 31 but an increase of $526,000,000 since April 12, 1926. The principal changes in this item since December 31, 1926, were decreases of 2.'96,000,000 and $63,000,000 in the New York and Chicago districts, and of from $25,000,000 to $30,000,000 in the Boston, Philadelphia and Atlanta districts and an increase of $47,000,000 in the San Francisco district:. Investments in United States securities were $446,000,000 larger and in other securities $186,000,000 larger than on December 31, an increase of$.227,000,000 in securit,t holdings being reported by banks in central reserve cities, of $304,000,000 by banks in reserve cities and of $101,000,000 by country banks. Total deposits aggregated $33,725,000,000, a decrease of $763,000,000 since December 31, but an increase of $655,000,000 since April 12, 1926. Dalland deposits increased $8,000,000 during the year, while time deposits increased $363,000,000. An increase of $1S4,000,000 in demand deposits in the New York district, $g0,000,000 in the Cleveland district and small increases in the Kansas City and Dallas districts were nearly offset by decreases in the other 3 districts, the largest decrease, $111,000,000, being ro•)orted by banks in the Atlanta district. All districts reported increases in time deposits, the largest being New York $275,000,000, San Francisco - $207,000,000, Philadelphia - $96,000,000, Cleveland $91,000,000, and Boston - $79,000,000. Amounts due to banks and bankers -fere $32,000,000 more than on April 12, 1926. The decrease of 783,000,000 in total deposits since December 31 is attributable largely to a decrease in the amount of float carried by the member banks, uncollected items having decreased $91,000,0 00 of which $354,000,000 was in exchanges for clearing house and checks on other banks in same place. New York central reserve city banks show a decrease of $814,000,0 00 in total deposits since December 31, those in Chicago of $60,000,000 and country banks of $46,000,000, while other reserve city banks reported an increase of $137,000,000. In the attached tables are figures by Federal reserve districts for all member banks and System figures for state bank and trust company members and for national banks. Changes in the principal resources and liabilities as compared with figures for December 31, 1926, and April 12, 1926, were as follo;4s: Increase (+) or decrease (-) sinc March 23, 1927 Dec. 311;ie Anr. 12,1926 Loans & discounts (incl. overdrafts) . . $22,532,000,000 -$374,000,000 +$526 000,000 United States securities 3,835,000,030 + 446,000,0oo + 4,000,000 Other bonds,stocks and securities • • 5,737,000,000 + 1s6,000,000 + 554,000,000 Total loans and investments • • • 32,154,000,000 + 253,o0o,00o ) ,Q3)4,000,000 Demand deposits 16,631,000,000 -*806,000,000 + 6,000,000 Time deposits 11,818,000,000 + 373,000,000 + 863,000,000 Government deposits 407,000,000 + 173,000,000 + 27,000,300 Due to banks and bankers 3,881,000,000 - 173,000,000 + 32,000,000 Certified and cashiers' checks • • • • 789,000,000 - 353,000,000 - 75,000,000 Acceptances outstanding 535,000,000 - 16,000,000 + 9,000,000 Bills payable and rediscounts 54b,000,000 - 213,000,000 - a4,000,000 *Demand deposits plus certified and cashiers' checks outstanding and less exchanges and other uncollected items decreasod$159,000,000. RE SOURCE S AND- 22,ILI S OF 1131,13ER B ANK S ON MARC 23, 1927, .A.ND DECE103E T.-1 31 , 19 2.6. st. 535113 Loans and discounts (including overdrafts) U, S, securities Other bonds,stocks and securities 41p rotal loans and investments :Cash in vault Reserve with F. R. Banks Items with Federal Reserve Banks in process of collection Tile from banlcs and bankers Exchanges for clearing house, and checks on other banks in same place All other iiir.ii Total resources Demand deposits Time deposits U. S. deosits Certified Find cashierst checks D e to banks and bankers Total deposits 41 Bills payable and rediscounts Acceptances outstanding Capital stock paid in Surplus fund All other liabilities State Banks March 23, 1927 December 31, 1926 I National Banks 16.rch 23, 1927 'December 31 JO $8,877,505,000 1,135,952,000 2,117,524,000 $9,329,236,000 1,109,536,000 2,094,858,000 $13,654,914,000 2,649,199,000 3,669,252,000 $13,577,314,000 2,279,427,000 3,505,650,000 12,180,961,000 12,533,630,000 19,973,365,000 165,475,000 '921,097,000 171,176,000 850,662,000 372,330,000 1,400,317,000 19,362,591,000 351,42o,000 1,359,3s6,coo 230,367,000 478,146,000 266,982,000 519,549,00C 1,418,237,000 543,26s,000 1,545,9S9,000 521,760,000 935,777,000 990,615,000 1,027,960,000 700,910,000 1,376,057,000 15,433,603,000 1,086,474,000 1,419,961,000 16,360,575,000 25,684,061,000 25,669,069,000 6,11,06,070,000 4,763,539,000 167,764,000 386,406,000 6,876,336,000 4,908,504,000 98,403,000 lo,424,639,oco 7,054,105,000 239,086,000 402,116,000 2,780,427,000 10,762,262,000 6,531,355,000 135,713,000 584,578,000 2,837,759,000 20,900,373,000 20,851,667,000 399,043,000 259,901,000 1,459,691,000 1,238,960,000 1,426,893,000 930,309,000 273,629,000 1,409,923,000 1,216,141,000 1,387,400,000 1,loo,9ss,000 12,824,8m •• S.. 274,698,000 7ss,519,000 753,214,000 644,9S5,000 556,524,oco 1,216,6n,000 13,656,49s,oco 229,557,000 277,334,000 793,524,000 730,2os,000 664,454,0oo 443,145,000 ALL MElf,B.U. BANKS (7,822 NATIONAL BANKS AND 1,322 STATE BANKS) - ABZTaACT CF CO7DITI0N K:FORTS ON MARCH 23, 1927, BY FEDERAL RESERVE DISTRICTS St. 5361a (In thousands of dollars 'District 'District !District 1District District 1District iDi strict I Total 'District District District District District 4,i U. S. No. 1 , No. 2 I Zo. 3 I No. No. 7 1To. 5 To. D No. 8 No. 9 No. 10 No. 11 No. 12 !9,144 banks 415 banks J92)4 banks 1770 beail:s I1 846 banks ,571 banks 471 banks J1,319 banks1602 banks 743 banks 984 banks. 817 banks 682 banks RESOURCFS Loans and discounts 011Wrafts TT:711r. Govt. securities Other bonds, stocks and s.)carities Total loans and investments Gastc,mersT liability on account of acceptances :Banking house, furniture, and fixtures Other real estate owned Cq.sh in vnult, Reserve with F. R. Banks itoms with P.R. banks in process of collection 22,514,115 1,709,526 18,504 430 3,835,151 255,739 905,638 3,332,905 1,823 2,352 931,865 1,567 539,815 692 785,124 1,504 113,807 493,243 146,861 134,337 194,040 493,844 1,810,971 768,449 677,256 651,263 149,266 137,757 5,785,776 32,154,346 2,459,539 9,743,118 2,520,6.04 3,242,922 1,290,318 1,159,025 14,596,949 251,714 187,310 178,915 862,154 1,159,583 TOTAL C. 1 , 1,332,107 667,086 2,122,637 1,726 123,319 3,109 400,119 5o,04o 419,991 842,171 2,945,856 500,232 48,453 351,551 11,736 8,451 9,214 12,506 26,377 757 584 200 2,332 27,571 1,012,103 178,230 538,305 2,321,414 65,772 7,895 39,834 142,872 212,998 15,064 109,591 929,202 79,563 11,653 42,082 138,391 132,847 21,297 59,777 194,278 60,921 12,747 29,832 70,751 55,596 12,991 32,41..9 69,3k) 154,428 26,706 82,921 316,516 40,081 7,748 22,136 80,955 23,762 12,978 18,959 50,717 45,251 14,714 28,435 89,173 40,783 12,671 24,211 62,783 100,101 21,762 48,078 176,406 673,512 57,336 207,567 53,791 69,989 43,889 28,738 72,465 35,560 7,254 35,039 26,313 35,521 84,994 182,240 105,424 185,496 102,055 143,649 314,242 125,568 99,188 199,661 143,791 210,075 38,435 894,504 42,111 31,306 15,890 15,570 90,262 14,424 6,414 14,792 7,717 51,145 4,413 24,590 2,507 8,215 2,530 2,847 22,082 2,283 3,54 4,451 2,849 21,385 2,321 3,119 21 36,247 4,252 222 1,090 256,455 2,825 1,223 100 15,026 4,119 9,390 702 20,165 2,990 2,023 82 3,820 1,992 3,690 1,337 8,412 4,250 5,661 3,409 49,443 2,009 3,568 24 14,673 1,386 141 . 1,756 822 278 3,875 2,178 2,402 2,593 1,472 30,163 aliagrom banks, bankers, ana companies 1,896,383 Exchanges for clearing house, and. checks on other banks in same place 1,222,670 Outside checks and other cash items 101,676 Redemption flind and due from U. S. Treasurer 32,480 U. S. securities borrowed 32,820 Other securities borrowed 8,701 Other assets 445,592 mist 6,745,767 1,595,684 2,169,098 1,008,970 491 658 1,279 2,573 1,183,307 247,173 411,232 131,424 41,118,464 2,991,305 12,932,444 3,027,036 3,988,954 1,647,062 1,548,262 5,765,711 5 4,824 363 181 2,489 1,681,903 1,091,890 1,598,030 1,171,332 3,674,535 ATI VEMBER BANKS (7,822 NATIONAL BANKS AND 1,322 STATE BANKS) - ABS1aACT OF CONDITION ILEZORTS St. 5361b ON MARCH q, 1927, BY =UAL RES7RVE DISTRICTS (In thousands of dollars) . T 1District !District Total 'District 1 District ;District [District iDistrict !District 1District fDistrict 1District IDITItor 1 No. 11 1 No. 12 I 7o.1 ! U. S. Ne. 2 I Yo. 3 I No. 14 ! No. 5 I No. 6 i No. 7 1 wro. 8 , vo. 0 ,1 ' 95,262 190,850 63,410 92,558 99,315 314,533 112,815 2,248,210 155,557 619,251 159,204 216,877 115,)445 43,493 104,010 33,932 43,305 62,504 87,61 65,550 245,413 1,992,174 141,507 649,004 271,508 241,177 LIABILITIES Capital stock paid in Surplus fund Undivided profits, less expenses 48,834 23,955 20,283 15,915 31,699 28,556 105,795 34,403 and taxes paid 545,596 82,154 79,005 290,777 85,914 Reserved for taxes, interest, etc. 2,335 10,162, 25,737 4,023 Dik rued 3,908 13,412 44,259 5,195 139,315 12,032 7,354 3,891 3,996 79L 2,020 104 47,221128 1,41J8 10,615 3,554 1,590 15,44o .o F, R. Banks '5,271 5,237 Due to banks, bankers, and 131,147 241,828 3,834,194 156,505 1,400,072 199,942 251,835 135,077 160,4co 594,579 184,11-77 111,012 246,31b trust companies Certified and cashiers' or treas49,233 111)114 8,755 15,234 7,951 51,325 9,316 11,198 urers. checks outstanding 570,699 19,596 788,522 18,704 15,004 613,015 1,245,990 remand cle?osits 16,830,709 1,311,360 5,840,449 1,125,443 1,473,229 551,654 502,095 2,219,510 650,56g 380,557 785,429 173,563 1,574,727 11,517,694 590,963 2,527,820 975,913 1,479,320 538,140 447,148 1,932,931 513,973 430,377 330,719 Time deposits 43,815 7,272 10,033 14,205 15,0149 45,592 21,906 25,170' 42,309 United Kates deposits 30,294 112,072 406,350. 39,132 945,303 3,156,433 Total de -sits 33,725,190 2,432,204 10,465,552 2,369,155 3,267,829 1,299,590 1,235,719 4,842,222 1,381,312 935,015 1,387,835 Agreements to repurchase U.S.Govt. 02 135 1,190 45 233 150 50 9,140 485 or other securities sold 13,248 751 32 (q5 4406 6,497 4,457 5,649 45,962 10,930 24,153 11-0,953 Bills payable 25,408 35,081 415,296 152,031 151759 9,581 1,332 2,371 25,731 11,698 22,876 9,483 Notes & bills rediscounted 131,137 12,413 11,657 9,856 5,930 7,879 Acceptances of other banks and foreign ls of exchange or drafts sold 474 984 7,481 134 12 7,042 1,642 147,194 10,643 4,610 indorsement 205,382 22,831 2,335 Letters of credit & tray, checks sold 76]. 114 27 for cash and outstanding 2,529 24 625, 2,238 366 17,790 25,015 37 77 377 2,832 28,555 27,455 661 198 16,349 806 Acceptances executed for customers 505,586 49,062 351,317 9,764 7,926 10,161 Acceptances executed by other banks 612 for account of reporting banks 2 1,437 444 108 2 29,013 22,105 2,756 850 67 630 47,317 43,224 40,061 27,401 34,557 642,067 84,406 National-bank notes outstanding 83,505 39,530 55,595 51,741 55,729 45,970 822 United States securities borrowed 3,119 5,551 3,568 141 32,845 222 9,390 2,048 3,690 1,223 363 2,598 1,472 Other securities borrowed 24 181 3,409 278 21 1,090 1,337 8,701 100 702 82 5 7,972 3,220 1,849 Other liabilities 3,741 159,689 63,193 3,543 2,248 6,250 22,927 24,307 1,330 9,059 41,118,464 2,991,305 12,932,444 3,027,036 3,988,954 1,647,062 1,54,262 5,765,711 1,681,903 1,091,3901,593,030 1,171,332 3,674,535 TOTAL Oh C. • Form No. 131. Office Correspo Tj ence TO From FEDERAL RESERVE BOARD Date May 12, 1927. Subject:_Earmarked. Gold in Bank of England as Part of Reserve of Federal Reserve Banks. WP M1 Mr—Vest. Yau have requested to be advised of the Board's action during the war period in permitting gold held in the Bank of England to the credit of and earmarked for the FederalReserve Bank of New York to be counted as a part of the reserve of the Federal reserve banks. It appears from the records that Governor Strong addressed a letter to the Federal Reserve Board dated June 6, 1917, asking that certain gold held by the Bank of England and earmarked for the Federal Reserve Bank of New York be permitted to be counted as part of the reserve of the Federal Reserv e Bank of New York and of other Federal reserve banks participatinw in the transaction. At a meeting on June 7, 1917, the Board agreed to author ize the transmission of a letter permitting such gold held abxoad to be counted as reserves of Federal reserve banks provided that the amount Should never exceed $50,000,000. or 10710 of the total gold holdings of the kirtic ipating Federal reserve banks, whichever amount should be the larger, and further that the ii fact of this gold holding should be shown on the statements of the Federa l reserve banks. It was agreed that the substance of the letter should be telegraphed to Mr. Mcildoo and .Lrd (who were absent) for their approval before transm itting Their approval was secured and the letter was transmitted. At a meeting of the Board held on August 14, 1919, it was voted that • the Federal Reserve Bank of New York be permitted to hold earmarked gold for safekeeping with the National Bank of Belgiu m up to 90,000,000 marks of German gold, being all or a part of the German gold coin purchased by the Federal Reserve Bank of New York and then held in the National Bank of Belgium, but that such gold should be transf erred to the Bank of England and there earmarked for the Federal Reserve Bank of New York as promptly as this could I- done in an orderly manner , having in mind the possible needs of the Treasury for the shipment of gold to Spain. In a statement for publication dated September 6, 1919, it was stated that this gold when received and held earmarked for Federal reserve banks by the Banleof England "will increase the gold reserves of the Federal reserv e banks and thus bring about a rise in their reserve percentage." At a meeting of the Board held on Januar y 28, 1921, it was decided to notify all Federal reserve banks that beginning on Saturday, Februa ry 5, 1921, they Should cease to regard earmarked gold in foreign countries as a part of their reserves. Advice to this effect was given Federal Reserv e "gent by telegram dated January 31, s 1921. Respectfully, Volume 170 - Page GBV MD 94 George B.Vest, Assistant Counsel. „ • I rlirvp l PRELI:MTARY laM3RANDILI RELATIVE TO OP 1927. !,JURICT POLICY The principal transactions in the Special Investment Account since the last Governors Conference were reviewed in the chairmants report to the committee on March 21, and copies of this report were sent to all Governors. In accordance with the action taken at that 'meeting, purchases of 25 million dollars of securities were ,:ade in the market to replace March 15 maturities, and the Special Investment Account was thus restored to 200 million dollars, which is approximately the same amount as has been maintained for the past Recent transactions resulting from large purchases of gold, two years. are described hereafter. General Credit Situation For many months business has been active and has continued to maintain, and in some directions even to exceed, the rate of production and consumption of immediately preceding years, although a number of recent developments have been of a character which might have had a widespread unfavorable effect had the E,eneral business and financial situation not been fundamentally sound. These developments are, of course, the extensive floods in the lower Y.ississippi Valley, some overproduction and price declines in the oil industry, disturbing financial developments in Japan, reduced production and consequently reduced working time for TZ*. \labor in two or three large automo"cile concerns, and not so recently the collapse of a number of real estate and building speculations and of one or two large installment finance companies. The total volume of credit in use, estimated from the reports of the reporting member banks, is now about a billion and a half dollars larger than a year ago. Volume 17 Page 99 The considerable expansion of the last two iv -41111k months has been distributed between increases in commercial loans, security loans and investments. On the other hand, the total amount of credit ex- tended by the Reserve banks is about one hundred million dollars less than this time last year. As the net gold imports (excluding the move- zient now under way) within this period were about 105 millions, the reduction of Reserve bank credit has about offset gold imports. The figures for Reserve System earning assets are as follows: (in millions) April 27,1927 Bills Bills U. S. Total discounted bought in open market Securities bills and securities Aoril 28,1926. 514 199 389 1114 444 242 318 1006 While total discounts at the Reserve banks are smaller than a year ago, the difference is largely due to reduced borrowings by country banks as reporting banks in principal centers are borrowing nearly as much as they did a year ago. Money rates are about 1/2 per cent. above this time last year, as shown by the following table. is for higher rates than last year. than last year. The present tendency For example, time money is 3/8 higher 90-day bills are 1/2 higher, and Treasury certificates and notes show an even larger increase. The New York discount rate is 1/2 per cent. higher. Money rates at New York April 28, 1927 Call money Time money - 90-day Prime commercial paper Bills - 90-day unendorsed Treasury certificates and notes maturing June 15 maturing September 1Federal Reserve Bank of Nev Ycyr12: rediscount rate Federal Reserve Bank of Yew York buying rate for 90-day bills - * Prevailing rate for preceding week. * A 4 3/8 4-4 1/4 3 5/8 April 28, 1926 * 3 1/2 4 4 4 1/4 3 1/8 3.46 3.51 2.51 3.07 4 3 1/2 3 3/4 3 1/2 A review of tho general credit situation, of rates and business, brings out the following striking facts: (1) That the general level of interest rates in New Yorlc, 7here changes of rates generally orizinate, is about 1/2 of one -,?er cent, above last year, the discount rate of the Federal reserve bank also being 1/2 of one per cent. higher. (2) The amount of banic credit employed for conducting the muntry's business, at a volume certainly much above tlae average of the last few years, is only $1,500,000,000 above what it was la:,t year. (3) While ir:egula2ly distributed between the classes of goods, the general level of commodity prices has experienced a considerable fall, and over the greater part of thc ?ac.t year fae decline in prices has been in both agricultural and non-agricultural commodities. Considering the reluctance of member banks to borrow from the Reserve banks, coupled with the considerable decline in interest rates which is occurring in Europe, the question is raised as to whether the somewhat greater restraint now beiag a-r2lied to the extension of credit at the money center (New York), coupled with the reduction of the total of the open market investment account over the past 18 months or two years from $500,000,000 to less than $200,000,000, has not gradually had the effect of exercising some nrcssure, imperceptible in any chanee over a Short period, but now becoming alnarent when examined as to its effects over a longer period. Gold Movements Between January 1 and May 1 of this year, gold imports into the United States have amounted to about $110,000,000, including $8,000,000 from Japan, and exports during the same period were $26,000,000. during this period were therefore $84,000,000. Yet imports Inasmuch as approximately $14,000,000 of the gold exported was gold which had been earmarked before 4ir the period under discussioll, about $98,000,000 was the net amount added to the monetary gold supply of thc country durin.2; the first four months of the year. This gold movement, together with the imports of 1926, account large- ly for the fact that the System's earning assets show a decline during the . past year, in spite of an increase of some billion and a half dollars in bank credit. Entirely apart from the movement of gold referred to above, there have been some significant developments since May 1, not included in the above figures. During the last part of Anril, the Bank of France recovered approx- imately $90,000,000 of gold from the Bank of England by the repayment of its crelit to the Bank of England. Of this $90,000,000, $12,000,000 arrived in New York last week, $18,000,000 is still on the water, and -,=60,000,000 was purchased by the Federal Reserve Bank of New York on May 6 and is now held by the Bank of England under earmark for account of the New York bank. In additio.: to this Bank of France 1-old, $2,500,000 has recently been imported from Australia, and another $2,500,000 more is now on the water from Australia and expected to arrive in this country this week. A somewhat •disturbing factor arose in the Drobability of the importation and sale to the_Federal Reserve Bank of New York of the $90,000,000 of gold, negotiations for the purchase of which had been concluded by one of the New York member banks from the Bank of France. It was learned that space had been reserved on the steamers and arrangements had been made for shivoing the entire amount of gold; in fact, ono shipment was about to arrive in New York, and others were being loaded. In view of this situation, after consulting with all the members of the Open Market Investment Committee and with the Federal Reserve Board by telephone, it was arranged to purchase from the Bank of France all of the gold - nearly $60,000,000 - which had not been shi,ped, and to sell the dip -S - 5 - Bank of France a like azount of the September maturity of certificates of indebtedness held in the Open Market Investment account. By this arrange- ment, the money market status remained unchanged, except as to the gold which had already been shipped, leaving the committee in position to determine later at its meeting whether these securities should be replaced or not. Securities were sold to offset $9,000,000 of the $12,000,000 already arrived, but no arrangements have been made for sales to offset the balance of the gold which will arrive from London and from Australia, amounting in all to about $20,000,000. With the sale already made and further sales, if made to offset forther gold arrivals, the securities remaining in the System's portfolio account will be a little over $100,000,000, too small an amount to afford security against possible future developments. will be appreciated, for example, if the $90,000,000 now purchased had arrived at a time when we had no portfolio of government securities available. It is clear, therefore, that the committee must from now on give careful attention to meeting this gold problem, either by increasing its portfolio in anticipation of future developments, or by adopting other The method of doing so should be determined with regard to measures. whether the time has or has not arrived when the Federal Reserve System can afford to put new funds in the market, the effect of which would be to reduce the borrowings of member banks, principally in New York, and possibly to reduce the System's holdings of bills. There are various possibilities for dealing with the gold problem as a whole which have never heretofore been discussed in the committee's report and which are now submitted simply for discussion. None of them are recommended at this time, but are intended simply as a summary of all possibilities. They are: (1) The committee could replace the securities sold to the Bank of France. The immediate effect would be to reduce the amount of member - 6 ,• 44111P • bank borrowings in New York, rhich are now runnin • on the average at from $100,000,000 to $150,000,000. (2) Those Federal reserve banks which have considerable holdings of long time bonds could dispose of those bonds, realize their profit and repurchase through the committee as a part of the committee's account, an equivalent amount of short time securities. These, with other short term government securities owned by individual Reserve banks, could be added to the System holdings without reducing the total earning assets of the individual Reserve banks, and thus increase the committee's account to over $200,000,000. (3) Arrangements might be made with the Secretary of the Treasury for somewhat increasing balances carried with the Federal reserve banks, and reducing the amount carried with special depository banks. (4) Some or all of the $75,000,000 of 2 per cent. Panama Canal bonds could be called and the national bank notes issued against them retired. Fur- ther purchases of the 2 per cent. Consols of 1930 could be made in anticipation of their possible retirement in 1930, as contemplated by the Secretary of the Treasury in his report of 1924. (5) By gradual stages, or all at once, the time schedule of the Par Collection System could be adjusted so as to increase the volume of uncollected checks and correspondingly reduce the reserve of members. (6) Plans could be undertaken for retiring the greenbacks, which however would require legislation. (7) Further amounts of the capital of the Federal reserve banks could be called. (8) The reclassification of reserve cities could be gradually under- taken so as to increase reserve r(:...quirements. (9) A readjustment of the relations of the Reserve banks to the market for gold could be effected if the Secretary of the Treasury saw fit • 41101, -7as authorized by law, to discontinue paying cash up to 98 per cent. of the value of imported gold, thus throwing the market for gold entirely upon the Federal reserve banks and enabling them to reduce the gold point for imported gold by the equivalent of a loss of interest for the period during which payment would be delayed. By reason of our Treasury practice, the United States is today paying the highest price of any world market for gold. (10) The Federal Reserve Board, of course, afteradecuate study, could revise the definition of what constitutes a time deposit, thus raising the reserve requirements. This is probably justified by the fact that something like 60 per cent, of the increase in bank deposits in the United States over the past ten years consists of that class of deposits which require only 3 per cent. reserve. (11) A revision of the regulations of the Federal Reserve Board in relation to the maintenance of reserves, by averaging reserves for a period of a week in Federal reserve bank cities, and two weeks in the rest of the country, could have the practical effect of somewhat increasing the amount which member banks must borrow. (12) The Federal Reserve Board could revise its ruling relative to currency in transit, which in effect reduces reserve requirements in those districts where the ruling is now applied. The above comprehend most, if not all, of the possible measures available for dealing with the problem of gold imports in view of our reduced portfolio. They are submitted for consideration and study. The possibility of gold imports must not be overlooked, and may indeed be imminent. (1) The underlying causes of such a movement would be: The continued maintenance of our present level of interest • 8 Wipe • rates, somewhat higher than a year ago, in the face of declining interest rates and reducing bank rates in Europe. (2) The fact that our technical practice in dealing with gold makes this the best market in which to sell it and one of the most difficult from which to export it. (3) The possibility, regarded by some as the probability, that within the next two years Germany will be forced to ship us large amounts of gold in order to meet reparation payments in the standard year. (4) Heavy foreign payments to meet the service on all foreign loans. Nor must the possibility be overlooked that conditions may change rapidly and instead of experiencing a large addition to our gold reserve, there is indeed a possibility, although more remote, that within the next few years we may sustain a large loss of gold. Gold exports from this country can arise from two causes: (1) The first is the perfectly normal movement resulting from exchange rates reaching a level at which it is cheaper to make payments abroad by shipping gold than by buying exchange. (2) The other, however, can occur irrespective of the gold shipping point, because of large balances held in this country for account of foreign governments and foreign banks of issue, which, as in the case of Germany, may decide to take gold for reserve purposes, irrespective of the gold. point. No danger need bp apprehended as to a normal export of gold, but we might sustain a large loss of gold. under the second category at any time, and that we are now prepared to deal with successfully because of the large proportion of such balances held by the Federal reserve bank, 9 the export of which could easily be provided for by our purchasing the securities now held for account of our foreign correspondents. The only embarrassment likely to occur as a result of such a demand will be due to the lack of an adequate supply of American gold coin, concerning which discussion has been had from time to time with the Treasury. Looking, therefore, to the future, that is, say for the next three years, the committee is of the opinion that the policy of the Federal Reserve System should be to prepare itself to deal with either a large import movement of gold or a large export movement of gold. Any other position would expose the System to the charge of lack of foresight. In view of the many alternatives to be considered, and especially in view of the fact that whatever may be the policy of the System it will involve taking a definite position as to the money market, the committee prefers to defer any recommendation until after discussion with the Federal Reserve Board and a definite expression of their views. 4440: 17,ARYINGS AND EXPENSES OF 7EDERAL RES7RvE BANKS APRIL 1927 - Total earnings of the Tederal reserve banks in Anril were $3,294,000 - $165,C00 less than in -arch, and ' 1;550,000 lower than in Anril, 1925. A decrease of $93,000 in errnings from purchased bills and United States securities as co...11pared 7ith Yarch nnd P decline of the same amount in miscellrneous errnings was Partly offset by an increase of $21,000 in earnings from discounted bills, The reduction in miscellaneous e,rnin,;s w2s due principally to losses on Tresury cortific:tos sold. Current expenses (exclusive of cost of currency) a6gregr.ted $2,159,000 as comp7red with $2,145,000 in the month preceding and $2,152,000 in April 1926. FIRST FOUR MOTHS OF 1927 - During the first four months of the year eixnings totaled $13,63,000, as compared with $15,304,000 for the corresponding period last year and $12,400,000 for the first four months of 1925. Current expenses (exclusive of the cost of Federal reserve currency) amounted to $g,572,000 during the fourmonth period, an increase of about $60,000 over the corresponding period 1.ast year. After providing for all current exnrnse and dend requirements, the Federra reserve b.T:nks on April 30 had a balance of $1,S01,000 rvailble for depreciation allowances, surplus and frrnchise taxes, ss comn-red with bnlance of $3,g26,000 -t the end of April 1926. E-rnings of the Federal reserve bnnk of Richnond on Anril 30 7ere $55,070 less thin exnense rnd dividend rec2uirements. Volume 170 - Page 101 Mr. Hamlin ZIrEKTIAL 1,ct r*rf Month Reserve Bank t.5369 EARNINGS AND EXPENSES OF FEDERAL RESERVE BUYS, APRIL 1327, Earnings . ourFlom From I From dichased. bills counted and U. S. 1 other bills • securities I sources $79,373 $101,853. New York 3 1,757 415,577 -Philadelphia 146,1s1 Cleveland Total April of Current ernencer !Exclusive of cost Total of currency 1927 Balr.,nce avnileble for 7------T- Annual rate Current kDividends depreciatiqn allowcurrent of current net ances, surplus, net ern- 1 accrued earnires on net frr ,lachise tax, etc. avr•go I to to ings earnino mar, 31_ Apr.30i0n 30 On Apr. Apr. 30j .)aid-incapital Per cent $284,720 $177,350 $107,370 $133,441 $18,:,ur) 2.5 Year $183,052 $155,641 $164,487 8,108 815,442 497,332 559,020 236,422 8.1 1,01, 6620 731,372 309,748 245,280 87,491 6,901 20,573 157,260 184,455 55,117 5.3 312441 255,8r:7 56,254 64,955 178,290 163,231 9,766 351,287 198,842 212,350 138,937 12.2 35,728 276,007 259,721 189,924 Richmond 73,822 47,775 4,337 125,934 105,403 116,o41 9,893 2.0 67,993 123,063 *55,070 *34,101 Atlanta 111,51)2 44,553 9,931 166,43,r) 101,59S 110,7)41 55,095 13.5 24r,106 100,663 144,41!3 113,649 Chicabo 189,042 249,066 23,053 1t61,167 311,503 37,2,328 126,839 786,263 337,25g 448,425 4o4,4in St. T,o.ais 53,22 139,527 g45 1q7,724 114,7)47 11,322 78,402 199,266 105,761 93,505 41,535 Minnenpolis 21,060 78,529 1,316 100,905 64,691 68,816 12,089 90,169 60,468 23,701 35,111 ansas City 38,737 116,442 21,919 177,098 139,185 139,637 37,461 169,4,35 83,s48 85,647 59,221 14,556 100,935 2,381 117,872 96,765 97,089 20,783 11)4,856 85,764 29,094 29,641 176,E34 180,617 3,219 360,470 195,142 201,078 159,392 570,000 177,480 392,520 273,193 1,474,262 1,453,135 1,766,676 1,726,096 1,819,561 1,812,361 2,159,107 2,320,965 2,144,905 2,310,700 2,152,464 2,298,413 972,995 1,148,609 1,545,300 Eiron Dallas San Francisco TOTAL: Apr. 1927 Mar. 1927 Anr. 1925 FEDERAL RESERVE BOARD DIVISION OF BANK OPERATIONS MAY 11, 1327. • 93,602 3,293,960 136,533 3,45,309 24,676 3,843,713 *Deficit. 9.? 10,6 4,437,379 2,536,021 1,901,358 1,570,259 15.5 6,214,160 2,326,27)4 3,625,886 2,285,830 x-4s54 COPY FED7RAL R7S7,RV7 B0A.7D 7ASTINGTON 18, 19'7. My dear Congressman: The Federal Reserve Board has considered your letter of May 2nd enclosing a cony of a letter addressed by you to the Com-etroller of the Currency with reference to chain banking in the United States throu - h the rirechPse by holding eom-lanies or investment trusts of the control1in4- stock interests of banks. You suggest thlt the Federal Reserv- Boara adopt administrative measures calculated to control or -nrevent the growth of -binds form of banking control among State bank members of the Federel Reserve System. The Federal Reserve Board is powerless under the law to take the action lehich you sug7est. There is no provision of statute which confers upon the Board any authority to regulate or prohibit the holding of the stock of State member banks by any group or corporation. In this connection you will recall that in a letter addressed to you under date of January 8, 1926, (a coy of which is enclosed herewith - see pages to 10) the Federal Reserve Board took occasion to recommend as amendments to your bill F.R: 2, then pending in Congress, provisions designed to secure adequate information regarding national banks and State member banks which are closely related in management, operation or interests to other banking institutions, and in particular to afford some check upon the abuses frequently occurring in chain benhin. The suggestion of the Federal Reserve Board on this su:s:ecl-, was net adopted. The Board has attempted in prescribing conditions u-eon which State banks may be admitted to the Federal Reserve System to effect some degree of control over chain barking. Among the conditions of membership with which State banks entering the Federal Reserve System are required to comply is the following: Volume 170 Page 141 "Such bank or trust commanI, except after applying for and receiving the ,)ermission of the Federal Reserve Board, shall not consolidate with or absorb or purchase the assets of any other bank or branch bank for the purpose of operating such bank or branch bank as a branch of the avelying bank; nor directly or indirectly, throu7h affiliated corporations or other-ise, ecsuire an interest in another bank in excess of 20 or cent of the caPital stock of such other bank; nor directly or indirectly promote the este.1-1ishment of any new bank for the purpose of acquiring such an interest in it; nor mPkt any ar- x-4854 -2- rangement to acquire such an interest." This condition of membership was incomorated in the Board's Re.Tulations of 1924 and has been prescribed for every State bank admitted to membership since thnt time. Under the provisions of the recently enacted McFadden Act, however, the Board appears to be withott authority to continue to impose a condition of membership of this kind. Section 9 of the Federal Reserve Act, as amended by the McFadden Act, provides that the Federal Reserve Bonrd may nermit State banks to become members of the Federal Reserve System, subject to the provisions of the Federal Reserve Act "and to such conditions as it my prescribe pursuant thereto." As there is no provision in the Federal Reserve Act which seems expressly or by necessary implication to authorize the imnosition of a condition of membership designed to control or prohibit chain banking Pmong State member banks, the FederP1 Reserve Board will be unable in the future to 7rescribe such a condition. Inasmuch as the existing la7 cont-ins no provision designed to check or control chin banking, the remedy lies with Congress. The BoPrd will be ver:- glad to do Pnything in its power to assist your Committee in mnking a study of chain banking. By direction of the Board. Very truly yours, D. R. Crissinser, Governor. Honorable Louis T. McFadden, House of Representatives, Washington, D. C. (7nclosure) • (copy ) X-4854-a Excerpt from Board's letter of January 8, 1926, to Honorable Louis T. McFadden, Chairman of the Committee on Banking and Currency of the House of Representatives (pages 8-10), referred to in the Board's letter of Y.ay 18, 1927, to Congressman ncFadden. ••••• "2. That Section 5240 of the Revised Statutes of the United States, as amended, be further amended by adding at the end thereof a new pararaph reading as follows: 'Whenever in the judgment of the Comptroller of the Currency any national banking association is so closely related in management, oneretion or interest to aLy other bank, banking association, trust comp4ny,securities com7an7 or investment company that an examination of such national banking association fails to disclose its true condition in the absence of detailed information regarding such other related institution, such national banking association shall (a) obtain from such related institution and furnish to the Comptroller of the Currency a cony of a report of an examination of such relc?-ted institution made by the State authorities simultaneously with an examination of such national banking association made by examiners anpointed by the Comptroller of the Currency, or (b) by such other means as may be deemed satisfactory by the Com-Dtroller of the Currency, furnish to the Comptroller of the Currency detailed information regarding the condition and operation of such related institution. In such cases the Comptroller of the Currency may, upon request, furnish the state Supervisor of Banking, or other similar officers, copies of reports of examination of such related national banking association. If any national banking association Shall fail to comply with the requirements of this paragraph after a demand for such comnliance has been made by the Comptroller of the Currency, the Comptroller sh1.11 report the facts in the case to the Federal Reserve Board, which may, after a hearing, issue an order depriving such national banking association of the privilege of receiving any discounts, advancements or accommocietions from the Federal reserve bank of which it is a member until it has complied fully with all demands made by the Comptroller of the Currency pursuant to the provisions of this paragraph. The Federal Reserve Board shall sand a copy of such order by registered mail to such national banking association and a Con:: to the Federal reserve bank of which it is a member; and, after receipt of said order, such Federal reserve bank shall not rediscount any paper for, or make any loan, advancement, or other extension of credit to, such national banking association until said Federal reserve bank has been notified by the Federal Reserve Board that such national banking association has comnlied fully with the reauirements of this paragraph.' "This proposal is desi;ncd to secure adequate information regarding national banks which are related to other institutions and in particular to afford some check upon certain abuses frequently engaged in by chainsof banks. During the last few years a number of such chains have collapsed, and inve.,tigation shows that when a national bank is in such a chain an examination of it fails to disclose its true condition, due to the shifting of assets back and forth between the various institutions which make up the chaI,,.. n3. That Section 9 of the Federal Reserve Act as amended be further amended by inserting therein, immediately after the sixth paragraph thereof, a paragraph reading as follows: trhenever in tha judgalent of the Federal 7leserve 3oard any member bank is so closely related in management, operation and interest to any other bank, banking association, trust company, securities comPany or iavestment co:17)any that an examination of such =ler bank fails to disclose its true condition in the absence of detailed information re7ardins- such ()frier related institution, aach member bank shall (a) obtain from auch related institution and furnish to the Federal Reserve Poard a cory of a report of an examination of such related institution made by the State authorities simultaaeously with an examination of such member bank, or (b) b- such other means as may be deemed satisfactory by the Federal Reserve 3oard, furnish to the Federal -Reserve Board detailed information regarding the condn and operations of such related institdticn. In such cases the Federal Reserve Board may, upon request, furnish the State Supervisor of Banking, or other similar officers, copies of reports of any examination of auch related member bank which has been made by . direction of the Federal Reserve Board or of the Federal reserve bank by examiners selected or apProved" by the Federal Reserve Board. If an7 member bank shall fail to comply with the recuirements of this paragraph after a demand for such comoliance has been made by the Federal Reserve 'Poard, said 3oard may, after a hearinL, issue an order de-tr.-iv:mg such member bank of the privilege of receiving any discounts, advancements or accommodations from the Federal reserve bank of which it is a member until it has coLplied fully with all'dcmands made by the Federal Reserve Board pursuant to the provisions of this paragraph. The Federal Reserve Board shall send a cony of auch order by registered mail to audh member bank and a colv to the Federal reserve bank of which it is a I ember, and, aftzx receipt of sRid order, such :ederal reserve bank shall not rediscount any pa-Jer for, or I.ke any S. advancement, or othsr extension of credit to, auch member bank until sid Federal reserve bank has been noed by the Federal Reserve Board that such member bank has comi:lied fully with the requirements of this paragraph.1 • • - 3- X-4854-a "Thf.s Trol2osal is slilar to the - rocoding and is intended to apply to State banks and trust companies which arc members of the Federal Reserve System. At present the only ;penalty for non-compliance with any prevision of the Feleral Reserve Act by State member banks is that provided for in the seventh paragraph of Section 9 of the Federal Reserve Act, which authorizes the Federal Reserve Board to expel from the Federal Reserve System any State member bank which fails to comply with the provisions of that Section. The penalty sugested above is less drastic but is nevertheless thought to be sufficient." • • FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFF;CIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD May 19, 1927. St. 5359 SUBJECT: Increase in Operating Efficiency at Federal Reserve Banks. Dear Sir: A report was recently prepared for the information of the Federal Reserve Board, in which an effort was made to measure the increase in onerating efficiency Et tne head offices of the several Federal reserve banks since 1923. While it is recognized that the results shown cannot be taken as an accurate measurement in each instance of the increase in operating efficiency, it is thought that they are sufficiently correct to constitute a fairly reliable measure of the very gratifying improvement achieved in operating efficiency during the past few years. The Board ieels that you and your bank will be interested in this reort, and accordingly a copy is enclosed herewith for your confidential use. Very truly yours, 7alter L. Eddy, Secretary. Volume 170 Page 145 Enclosure. CHAIRIWT OF EACH FEDERAL RESE:=7: ROT.* May 7, 1927 St. 5359 . TO: Mr. Ja=s FRW: Yr. Smead Increase in operating efficiency at Federal reserve banks. Since 1922 the Federal reserve banks have been submitting reports to the Federal Reserve Board showing the cost of operating each function and expense unit in the banks and branches. These reports have been submitted principally to give the Board and the banks a more adequate basis for comparing costs between the respective banks and of keeping a check on the trend of costs in the several expense units. Although experience has demonstrEted that no exact conclusions as to cowarative efficiency can be drawn from differences in unit costs at the several Federel reserve banks for reasons which are now well known, the reports have served their our-eose exceedingly well by bringing to the attention of the banks those operations where costs ap-oeared to be relatively high. While expenses would undoubtedly have been reduced materially had no functional exoense reports ever been submitted, it is known that in many cases substantial savings were effected as a direct result of information shown in these re-oorts. It has been generally known that the personnel of the reserve banks has been steadily decreasing during the past 4 years, notwithstanding a substantial increase in the volume of work handled, but heretofore the task of measuring this increased efficiency has not been srtisfactorily accom-elished. In studying this problem Mr. Von Fossen hes constructed two indices which seem to satisfactorily measure the increased efficiency in each of the 12 expense units for which figures on the volume of work handled are available, These indices bring out the relative increase in the output per employee and per unit of cost during 1924, 1925, and 1926, as compared with 1923, Briefly, it may be stated that the method of constructing these indices was to compute the estimated number of employees that would have been required and the estimated expense that would have been incurred in each of the 12 expense units in 1924, 1925, and 1926, respectively, had there been no change in efficiency as compared with the 1923 level, and then to divide this estimated number of em-oloyees and the estimated cost by the actual number of employees and the actual cost for each year as given in the functional exmense raeorts. The estir_ated number of emnloyees neeaed in each year based on the 1923 scale was obtained by dividing the volume of work performed in the given year by the average number of units handled per employee in 1923. Similarly, the estimated exnense on the 1923 scale was determined by multiplying the number of units handled in the given year by the 1923 unit cost. It should be borne in mind that these indices s.re based on figures for 1923, and as the relative degree of efficiency was not the same at all banks at that time it should not be expected that the indices of output per employee or per unit cost would show the sane degree of improvement at all banhs or even in , f, J.1 expense units in the same bank. In other words a more pronounced increase in the index number in one instance as compared with another merely indicates a greater iperovement in efficiency since 1923 but does not necessarily imply a present higher level of efficiency, since a bank or operating unit which was very efficient in 1927 would not show as large an increase as would have been the case had it been at a lower level of efficiency in 1923, St.5359 The principal 7.oint to be brought out, however, and one which is conclusively demonstrated b7 the ineizes, is thot all tarLs are now oTderating relatively much more effic.iently tn&n the:- were a few years ago. To cite a few outstanding instances, the output per employee in the Currency Receiving and Sorting unit increased from a base of 100 in 1523 to 108 in 1324, 23 in 1925, and 13g in 1926. In the Country Checks unit the increases were to 111 in 1924, 122 in 1925, and 127 in 1926. During the same period the output for a ,iven eymensa outlay in the Currency Receiving, and. Sorting unit rose fror., the 1923 base of 100 to 110 in 1924, 124 in 1925, and 135 in 1926, Similarly, in the Country Checks unit there was a rise to :20 in 1924, 136 in 1925 and. 7247 in 1926. While about one-half of the em.7107ees of the banks are engaged in the work of the 12 exnense units for which we hnve a measurement of the volume of the work -2erformed, it does not follow, of Course, that the trend of ex-yenses in these units is indicative of the trend of exeJanses for the bank as a ,-hole. For example, expenses in the General Overhead Non-Contro1ln7o1e function, which does not include any salary exnenses but is made up largely of the cost of currency, must be considered as more or less in the nature of fixed charges not susceptible to material reduction. The eTnenses of the aenerP.1 Overhead Controllable And Provision of Space functions, while more susceptible to red:uc tiQn eetative in cost throurh increased efficiency, should not be expectec: to show the sae reauetion as is shown for the 7rinciPa1 opernting de:rrtelents. In most of the other eroonse units for which there is no measurement of the volume of work, an analysis of the figures indicates that expenses have not increased in proportion to the increase in the volume of work, and it is probable that the increase in :tme in these units as a whole as in the 12 efficiency is ap-eroximntaly the s, units for which we have a measurement of the volume of work handled. Loving out of account the Fiscal Agency function, in which the volume of work has been declining substantially for a number of years and which is not strictly a banking function, the index of employee efficiency for all departments (assuming no change in efficiency in the aeneral Overhead and Prevision of Space functions and for all other units the sai2e ircrease as in the 12 measured units) rose from 100 in 1323 to 110 in 1924, 122. iu 1925, end 129 in 1926, while the index of cost efficiency was 109 in 1924, 119 in 1925, and 125. in 1926, as will be seen from the follcwin; • . 4 -3 St.5359 Average number ICos, of o7erF.tion of elnplo,=?.s 1 1 On 1 On 1q27 1 Actual 1523 Actuall • ' -I i scale 1 scale General Overhead Noncontrollable 1923 1924 1925 1926 General Overhead Controllable 1923 127 1924 124 1925 118 1926 116 Provision of Space (less rent received) 1923 1924 1925 1926 - $3,914,678 3,364,429 3,842,027 3,867,986 $3,914,678 127 124 118 116 1,545,104 1,459,420 1,383,324 1,457,329 1,545,104 1,'459,42o 1,383,324 1,457,329 100 100 100 100 100 100 100 100 2,354,179 2,195,797 2,401,577 2,415,898 2,354,179 2,195,797 2,401,577 2,415,898 100 100 100 100 100 100 100 100 5,720,273 5,407,703 4,979,200 4,945,081 5,720,273 6,117,734 100 111 125 133 100 117 129 139 100 111 125 133 100 113 129 139 100 110 122 129 100 109 119 125 619 619 669 760 771 669 760 771 Twelve measured expense units 1923 1924 1925 1926 3,826 3,681 3,423 3,442 3,826 4,077 4,281 All other, exce7A Fiscal Agency 1923 1924 1925 1926 4,100 4,10o 3,849 *4,263 3,453 *4,326 3,390 *4,500 Total, except Fiscal Agency 1923 8,672 1924 8,323 1925 7,760 1926 7,719 Index Index of e=1o7-of cost ee effi- efficiency ciency 4,568 8,672 9,133 9,485 9,955 6,446,072 6,887,014 9,056,790 9,056,790 9,281,475 *10,500,133 8,521,500 *11,031,934 8,382,505 *11,674,315 22,591,024 21,708,824 21,127,628 21,068,799 100 100 100 100 3,364,429 3,842,027 3,867,986 22,591,024 23,637,513 25,104,9P 26,302,542 *Same proportionate increase assumed as calculated for the twelve measured units. 14 St. 5359 The ratios of out:out 1Der an and output per unit cost have been worked out for -Cie Federal reserve bnnks singly vnd combin ed (had offices only) for each of the 12 expense units for which volume of e-ork figures are available. These tables nre attached hereto and the results for each bank PS a whole are summarized. below: INDICES OF OUTPUT PER EMPLOYEE AND PER UNIT COST OF THE FEDERAL RESERVE FANYS (HEAD OFFICES ONLY) (Based on figures for 12 exrense units for 17hich figures on the volume of work performed are available, using 1923 as se. base of 100) Federal Reserve Bank 071tput ner em-)lovee 1924 195 1926 Output .loor unit of cost - index 1924 1925 1226 Boston New York Philadelphia Cleveland 101 113 109 109 108 128 125 120 111 140 128 125 102 109 113 114 126 114 137 138 130 Richmond Atlanta Chicago St. Louis 103 92 114 118 137 110 123 133 169 125 119 158 106 103 120, 132 138 131 134 1149 162 155 135 176 Minneapolis Kansas City Dallas San Francisco 111 121 120 107 122 146 131 137 126 160 146 153 121 128 135 103 137 153 152 142 136 167 172 167 TOTAL 111 125 133 113 129 139 110 125 132 It will be noted that for sce-le of the smaller units in several of the brInks the volume of the work perfor med and the number of em7e1oyees are too se. .all to make it safe to draw definite conclu sions regarding the trend in expenses, esPecially as in a. number of cases the am-F. :10:72es are engaged on a given o-eeration on17 part of their time, and consequentl- the method of allocation followed may be sufficiently in error to LateriE..11 7: 1.-ffect the indices shown. In general the organization of the v,-,..rious reserve loRri',, :s does not exactly conform with the division into expense units called for by the functional expense reports, a single operating unit of a reserve bank including in some . instpncos two or more expenso units and in other cases the work of a given expense unit being divided between two operating units. This not only makes it difficult to obtain an accurate count of work handle d and of employees in the expense units ao affected, but any change in the bank's organization serves to further ConTlicate the problem. Although greater familiarity with the work and increa sed dexterity or speed on the part of emPloyees in Performing certain definite tasks have undoubtedly played a part in brinij me about the improveent noted, much the greater part thereof has been due to the eliminntion of unnecessary MLA& • 5 St.5359 detail and more economical methods of handling the work, in some cases by the introduction or greater use of 1.- bor-saving machineo. All the bpnks are continually studying their expanses with the object of reducing costs wherrever possible without sacrifice of efficiency, and it is believec that the budgets for the control of expenses, which have now bean adopted by all Federal reserve banks, are of material help in bringing to liz;ht the operations in the bank where still further economies can be effected. Such information as is available indicates that in those b7nks which "neve been operating for some time on a carefully planned budget, tliere has been developed a keen interest on the part of department heeds and officers in the reduction of expenses, with very gratifying results. 09771 77:I AL OUTPUT PR EYPIOY7E 21.7D PER uNIT OF COST IN PRI7CIPAL DEPARTMENTS, ALL FEITRAL RESERVE BANKS (EEO OIPICE$) Jumber of items handled in thousands elmense in thousands of dollars St. 9399 'Total for [GovernCit,, checks Country Coupon collections City I Dis- c Country Return CUrrency loperations, Coin Other than Government colcolcounts 1 Clearings 1 Other , , check:s items I measured , 1 cnecks ,loctions loctioas Gov't ment 1 . 1 F Items handled: 1923 19'4 192'5 1925 -800 1,333,187 90:.' 1,1204,698 ) 0)-, L9c, 285 1,16; 1,,,o0,068 • kverage number of emoloyees: 1 9. ,23 1924 1925 1926 -Tapense: loo 1924 1925 1006 1,716,301 1,79,533 1,935,09 2,173,126 8.3,419 ;9,071 (24,302 101,3Si 6,283 15,S34 17,33 13,659 129.57 127.45 133.30 3,326.27 *214.71 3,661.16 243.04 3,423.20 136.19 3,Y 1 2.02 7i1.97 0 cop -(7 714.46 5z-,6.6o 11.29 113.55 105.79 107.12 250.35 237.75 225.48 235.19 *396 )4C)5 373 373 1,138 1,091 1,036 1,023 254 255 240 241 409 397 371 373 170 100 108 123 136 100 105 122 13' 100 104 120 125 100 133 163 100 110 124 135 100 101 115 133 100 101 119 123 5,720. 5,4os 4,979 1:,945 28,214 26,440 20,002 20,767 363,001 337,555 41,493 439,5o7 7,272 5,375 8,31; 9,524 35.58 1,50')".30 125.65 73.36 1,519.00 111.60 69.34 1,475.57 105.04 64.29 1,51.27 2,19 2,463 2,389 2,462 1,644 1,763 1,434 1,360 52,233 40,647 35,596 31,370 2-.)5.65 92.07 252.65 220.33 202.76 199.63 96.4s so.4s 6o.S2 54.91 109.14 35.75 62.35 57.15 392 359 321 307 loc 132 lo6 99 830 622 73,) 727 91.55 93.53 161 113 106 95 $7 2,216 1,942 1,337 1,s54 221 211 202 183 141 1 3.28 133 100 lo4 95 107 100 111 122 127 100 128 143 151 100 100 100 114 133 133 99 130 142 98 ( .jso 133 '44 169 100 99 119 116 100 115 133 133 100 102 92 104 100 120 136 143 100 121 133 157 100 100 103 100 125 100 100 11-RD 0)4 136 146 158 153 115 126 173 171 173 133 9S $5 Gutput -.oer employee 411 1523 100 111 125 133 19 24 1925 1926 Output por unit of cost (index): 1923 19E4 1925 1926 100 113 129 139 100 145 100 C8 163 *1923 figures not comparable with those of subsequent years and accordingly the 1924 figures were used as the base in calculating the indicac of output. 4 COYFIDENTIAL BOSTON (HEAD OFFICE) IN PRINCIPAL DEPARTMENTS, FEDERAL RESERVE BANK OF OUTPUT PER EVPLOYEE AND PER UNIT OF COST St. 5359-b thousands of dollars) (Number of items handled in thousands; expense in collections Coupon y Countr City Govern- Country City checks Return I Governthan. Ptcr Total for colcolDisment Coin items checks Other ment ti operations counts Currency dramen Clearings nsIGov lections lectio checks measured 5,478 462 225 40 489 53,472 1,825 60 7,861 206,6.64 196,501 *64 4,467 241 251 551 39 57,641 1,836 61 8,534 180,439 216,741 3,906 131 54 247 49 601 1,696 101 59,560 9,069 228,605 182,778 127 93 239 3,364 52 64,934 1,719 655 121 237,828 191,126 10,053 1 Items handled; 1923 1924 1925 01926 kverage number of ef:121oyees: 1523 1924 1925 1926 ExIlense; 1923 1924 1925 1926 111 417.77 427.74 425,15 443,88 602 591 614 Output per employee IiindJx): 1923 1924 1925 1926 Output per unit of cost (index): 1923 1924 . 1925 1926 100 101 108 111 100 102 110 114 9.05 6.63 10.02 6.85 25,07 24.70 11.79 11.61 6.55 6.43 24.40 25.23 263 285 16 16 o 277 20 6 290 20 9 10 9 9 41 4o 39 4o 100 171 100 100 100 96 96 93 118 269 323 90 91 103 105 102 94 104 100 94 123 133 100 108 100 89 100 154 100 100 101 100 91 106 99 96 114 276 352 100 100 106 97 119 110 110 124 11.21 10.19 10.21 11,76 16,17 18.89 15.87 17,54 4.89 2.90 3.04 3.04 3.86 4.o4 4.00 4.oi 192.42 210.62 208.77 221.98 25 22 22 25 29 6 5 5 r 100 101 102 100 100 151 198 100 103 108 110 100 189 200 100 105 111 112 *15,05 14.79 13.27 15.16 *28 p. 2 23 26 108.00 109.63 110.32 113,20 136 136 140 35 33 32 93 99 14 14 94 79 81 14.43 9,73 9.90 9.90 10.99 5.36 4.03 4.co 23 15 15 8 15 16 6 6 100 113 113 105 100 77 42 4o 100 167 195 169 100 113 115 108 100 loo 159 175 79 41 38 151 s were used as the base of calculating subsequent years and accordingly the 1924 figure *1923 figures not comparable with those of the indices.of - output.- -41B. CONTILENTIAL OUTPUT PEP. EPLOYEE AND PER UWIT OF COST IN PRINCIPAL DEPARTMTS, ITDERAL RESERVE BA7K OF NEW YORK (HEAD 07FICE) st. 3 96 -7, -3 , • f lars, A collections Coupon Country Cit:, , aovernCity chec.,cs 1 !Total for l uountry Return GovernOther than col1 colment loperations counts Currencyl Coin items lections lectio-is Gov't. checks Other 1Clearings ment ! checks 1 I measured i Items handled r23 1(1;24 1925 1926 0 Average number of em-ployees: 1923 1024 1925 1926 Ext,ense: 1923 1924 1S25 1926 3o7 256 192 2o5 77,035 81,045 86,413 92,376 787 875 869 44o,197 472,643 514,6'42 562,212 1,265.2S *33.29 1,211.41 59.22 1,116.36 52.57 1,o98.25 52.77 279.59 281.13 253.o2 221.37 4g.oe 47.04 45.38 45.37 108.94 73.5S 84.19 87.88 *57.o3 93.34 93.57 98.53 *62 120 118 116 414 429 39PJL4 35g 10S 111 201 '59 158 11;5 *65 117 118 124 39 39 34 2S 497 462 432 442 73 65 58 54 32 45 41 42 146 119 1o5 103 100 107 129 100 100 109 105 loo 85 45 61 100 115 129 loo 126 149 'So loo 59 51 5o loo 149 159 156 loo 59 49 52 loo 137 154 Output per employee Andex): MP 1923 1924 1925 1926 Output per umit of cost (index): 1923 1924 1925 1926 *1,494 12,940 9,609 11,128 10,437 5,405 10,619 5,672 *73 179 225 242 S. ilo 161 liS 128 148 100 100 100 lo4 123 123 1o6 116 147 131 100 107 105 894 945 1,150 820 S. 6o.S5 48.24 31.03 25.83 100 85 47 61 134 93 77 54 35 52 47 100 98 132 137 *1923 figures not comparable with those of subsequent years and accordingly the 1924 figures were used as the base in calculating the indices of output. COITIDE-ITTIAL OUTPUT PR E141PL0YEE AND PER WIT OF CCST IN PRIYOIPAL D7PART7ENTS, 7ED72AL RES71173 BAY:7 OF PHILADELPHIA St.5359d : eir:_thious!.,nds of dollprs) (Number of items handled in thousaras; e71-70 City !Country Cou:con collections City checks !Total for Return Dis- Currency 1 col- p=le=ncolment Coin operations counts CZielt L items Other I ClePrings 'lectioiaslections checks L measured Items handled: 1923 1924 192 1926 *62 - 156,722 54 164,432 83 174,790 1G8,980 102 ill Average number of employees: 1923 1924 1925 1996 254 276 278 269 57 96 118 149 6,355 4,952 4,292 3,709 8.06 8.09 7.17 7,09 21.61 22.46 22.96 23.25 1.91 1.83 2.25 4,34 12.53 10,00 7.98 7.31 194,118 216,925 265,610 291,012 10,415 11,235 19,191 12,203 3,964 4,904 5,922 6,207 1,950 1,931 1,798 1,933 35,69g 40,832 46,131 48,004 618 767 838 1,021 72 s6 89 86 24.21 16.58 15.77 15.95 27.69 24.04 23.21 23.75 6.44 3.29 4.70 137,79 158.85 163.70 163.26 11.50 9.62 9.16 11.17 360.30 378.53 372,84 387.25 *15.42 21.54 14.99 15.56 ,-. , Qd. ' 0') 12.41 14.06 14.69 16.85 535 -1. ) . 42 527 .../ *27 39 29 30 125 115 118 129 27 34 33 35 39 29 27 30 43 40 39 41 8 5 6 7 178 196 197 191 18 17 18 18 15 15 12 12 34 34 33 32 3 3 4 6 18 15 13 11 IF 1923 1924 1925 1926 100 109 125 128 100 223 262 100 96 103 104 100 94 116 no 100 158 180 178 100 173 217 222 100 194 155 16 100 99 169 113 100 148 170 170 100 120 14o 138 100 105 103 106 100 176 176 115 100 98 106 100 Output -per unit of cost (index): 1923 1924 1925 1926 100 113 132 138 100 210 250 100 115 119 117 10C 89 112 118 100 145 172 151 100 161 202 200 100 154 129 116 100 104 117 125 100 136 137 171 100 118 152 148 100 loc 114 122 100 158 1)45 117 100 90 95 90 Expense: 1923 1-924 1925 1926 80.71 ss.17 67.13 3.63 Output pox. em721oye *1923 figures not com:?Frable with those of subsequent years and accordingly the 1924 figures were used as the "Lase in calculating the indices of output. CONFIDENTIAL OUTPUT PER E1TLOYEE AND PFR 'UNIT OF COST IN PRINCIPAL DEPARTnNTS, FEDERAL REST:RVE BANK OF CTFVELArD (HEAD OFFICE) St.5359-e (Yumber of items handled in thousands; expense in thousands of dollars) Couoon Country collections City GovernCity checks Total for Country Return pther . than colcolment GovernCurrency Coin operations counts items chec's Other ,Clearings ,] ment lections lections .7o.v%;rnt:, checks measured Items handlod: 1923 1924 1925 192S Average number of eur?!u7aes. 1923 1924 1925 1926 1,082 3°0 ggS 963 20,4gg *8.50 11.15 ii,00 5.89 6.17 13_02 4.42 2.00 2.00 2.00 2.00 73.60 75.6-5 74.94 78,77 7.25 6.25 5.33 5.63 2 2 91 89 Lt. g9 49.. 59 61 • '9°,32 199.93 is4.20 131.64 Expense: 1923 1924 1925 1926 *20 25 51,566 52,616 53,357 62,067 5.25 49 12 13 11 39 4E 3 3 9 Output ner em-fLoyee (index): 0 1,23 1,24 1,25 1,26 Output per unit of cost (index): 1923 1924 1925 1926 S. 93 100 132 346 516 546 484 97,974 96,gil 93,958 100,893 *4o loo 93 116 llg 119 136 20,779 20,95g 100 94 108 137 100 S5 113 108 100 g3 82 89 100 99 loo 106 100 gg 102 129 100 SS 137 106 loo 79 6o 59 loo 104 109 116 33 41 43 44 130 212 214 203 4.21 19.42 L.si 51 78 83 5.75 5.29 5.42 3.69 3.96 4.05 5.00 5,00 16.00 15.49 4.79 4.'3 14 9 12 12 35 33 11 11 10 11 29 2g 10 9 9 8 100 173 215 is° 100 10S 109 113 100 176 200 196 100 246 185 227 100 123 109 106 100 107 117 120 100 173 198 194 100 262 182 204 100 12G 123 135 .1c,23 figures not comparable with those of subsequent years and accordingly the 1924 fioires were used as the base of calcul9ting the indices of output. 2,c34 2,437 2,314 2,298 CCNFIDEITTIAL CF RICH= (HEAD OFFICE) OUTPUT PER E-1PLOYEE AlTD PER UNIT OF COST IN PRINCIPAL DEPARTEENTS, FEDERAL RESERVE BANY 59-f St. Number of items handled in thousands; expanse in thousands of dollars , Coupon collections Country City GovernCity checks 'Total for Country Return GovernDis, col- Qthclr than colment Coin Currency p 'oerations! items checks Other Clearings counts • ment 1 P ons overtiment lacti lactions checks measured I I Items handled: 1923 1924 1925 1926 • Average number of employees: 1923 1924 /99 1926 Ex;ense: 1925 1924 1925 1926 Output per employee (index)! •1923 1924 1925 1926 Output per unit of cost (index): 1923 1924 1925 1926 100 103 137 169 100 106 138 162 3 3 2 2 18 18 16 16 2 1 1 1 3 2 2 100 97 134 172 100 125 154 201 100 214 263 184 100 103 115 108 100 178 289 408 100 75 64 66 100 105 141 171 100 122 143 197 100 201 264 218 100 96 105 96 100 152 245 321 100 88 81 75. 100 102 163 204 100 86 96 86 100 111 1.9 208 33 35 32 32 5 6 6 7 5 0 5 1 1 1 1 4 4 100 161 191 100 los 125 151 100 99 117 184 lco 173 170 178 loo 159 1E8 100 103 115 130 100 91 101 149 100 145 139 160 *35 35 31 30 20 20 17 14 lco 88 102 109 3.30 3.30 2.24 1.99 291 276 229 203 2.02 2.10 2.10 1.80 3 3 .65 .76 .57 .54 27.50 27.74 24.30 22.60 1.58 .98 .72 .73 159 145 112 98 5.11 3.21 3.50 3.27 *20,31 20.36 17.56 16.98 945 734 625 553 12.54 11.50 10.22 10.14 12.06 11.44 9.55 8.12 4.49 4.44 4.24 3.59 221.90 216.16 173.17.6 150.93 1,435 2.60 2.16 1.90 1.75 129.74 128.17 96.46 79.42 1,559 1,674 1,636 46,909 47,841 53,658 23,820 23,328 26,287 35,027 10 14 12 21 23 15 643 6s 711 790 43,154 108 102 101 94 554 656 675 751 121 124 107 109 *79 86 119 136 28,204 27,009 28,066 29,672 7 as the base of calculating *1923 figures not cowarable with those of subsequent years and accordingly the 1924 figures were used the indices of output. 116 CONFIDEFTIAL XTLANTA. (HEAD OFFICE) OUTPUT PER EMPLOYEE AND PER UNIT OF COST IN PRINCIPAL DEPARTYENTS, FEDERAL RESERVE BA-NY, Number of items handled in thousands; expense in thousands of dollars St.5359!Coupon Governcollections !Country Total for City checks City I Ms- i Cotry l Return Coin colI coloperations cortnts Currency ment rill Govern10'!beY. th Clearings 1 Other checks items measured lectionsjlections checks Governmens.t; ment I I Items handled: 1923 1924 Amk 1925 lip 1926 Average number of employees: 1923 1924 1925 1926 *82 23 74 121 70.01 *12.58 76.38 17.22 71.68 13.13 74.95 14.61 Expense: 1923 1924 1925 1926 108 112 *;),D 27 02 20 22 9)4 33,321 35,786 37,607 39,316 12,960 13,7os 15,953 17,511 1,494 1,624 1,745 63 15 18 24 490 526 549 527 5,695 5,356 8,734 7,650 195 190 208 247 18 19 23 24 23.48 21.93 17.54 17.68 .66 1.44 2.00 1.00 8.67 6.23 6.51 5.81 .28 .69 .10 .10 1.40 1.76 1.78 1.98 15.53 18.95 22.87 24.81 3.42 3.30 3.70 3.72 1.32 1.72 1.82 2.01 # 1 # 2 31 32 25 7 7 6 3 2 27 0 2 3 3 3 100 84 100 101 98 116 100 51 92 56 100 41 35 24 1,518 28 2 10 26 23 2 7 3 8 23 2 0 100 115 151 157 100 49 41 89 100 141 145 174 2 2 2 28 28 20 19 .79 1.79 1.58 2.23 1 2 2 3 _ _ - 617 448 387 342 1.90 1.35 .63 1.00 3 2 1 1 2 Out at pc,r employee 41p ridex): 1923 100 1924 1925 1926 99 110 125 100 117 172 - 100 85 88 85 SO 84 _ _ - 100 77 143 80 Output per unit of cost (index): 1923 100 100 100 100 100 100 loo 100 100 100 , _ 1924 103 116 100 140 102 91 61 08 93 95 98 1925 131 119 141 SS 137 124 147 115 138 130 50 1926 155 180 146 172 215 144 153 43 105 136 76 *1923 figures not comparable with those of subsequent years and accordingly the 1924 figures were used as the base in calculating the indices of output. *Less thpr CONFIDE7TIAL OUTPUT PER EMPLOY7E AND FER UNIT OF COST IN PRINCIPAL DEPARTMENTS, FE2FRAL RES7RV7, 3ANY OF CHICIGO (HEAD OFTIOE) st. 5359h (Number of items handled in thousands; expense in thousands of dollars) 1 1 I Couipon collections 1 'Country 1 City 1 Govern. City checks for I !Total Caantry 1 :cturn Other thanloverncol- I col'Currency! ment Coin !operations! I checks 1 items !Clearings 1 Other counts ment Gov't. lectionsllections checks I measured I It,34is handled: 1(T.23 1924 1925 1926 23o 236 235 273 79 5,484 103 227 138 7,302 3,517 5,520 19.25 14.4s 13.01 17.3s 26.ss 23.54 21.26 17.so 7.75 lo.s3 9.26 7.21 25 26 27 375IM 24 401 33 27 17 29 47 47 4o 33 100 123 123 115 100 125 89 88 100 123 116 100 117 131 100 94 241 102 85 179 189 96 100 13S 142 142 100 122 12S 159 100 119 112 SC 100 100 lo4 11111 4,54g 4,593 4,133 4,161 57,979 62,014 68,267 72,885 7q0 v90 1,o,S4 1,16s 19.75 15.s3 15.1g 17.09 293.75 255.5o 2go.14 320.21 7.75 7.79 11.75 13.o4 452 350 23 26 22 20 20 100 96 149 179 100 126 118 106 100 96 137 171 100 120 118 117 *120 146 224,315 228,463 137 '47 244,535 177,573 195,s77 262,162 220,582 13,057 14,753 13,887 15,285 191,685 72 rr 0 ) 56 55 OP . erage number of employees: lc; 23 1324 1925 1_9 26 6o2.3s 1 545.9o 1 54o.47' 592.7g' *38.25 3o.s3 23.61 24.99 15.25 14.66 '0.43 9.79 25.50 45.5g 41.03 52.84 970; *71 65 34 814 50 51 c.0 36 64 57 845; 33 _ _ _ 23 21 18 16 Output per employee (index): Aft 1923 MP 1924 1925 1926 100 114 123 119 Output per unit of cost (index): 1923 1924 1925 1926 100 122 124 100 123 129 I. 120 139 152 s6 69 82 S5 *1923 figures not comparable with those of sabsequent years and accordingly the 1924 figures were used as the base in calculating the indices of autpat. C07FIDITIAL jt.'.)):)31 OUTPUT PER E'...7PLOYEE AY.D PER UNIT OF COST IN PRINCIPAL DEPARVIENTS, FEDERAL RESERVE BAITK OF ST. LOUIS (HEAD OFFICE) minter of items handled in thousands expense in thousands of dollars Total for Country Coupon collections City GovernCity checks I Country Return Di colcolCurrencyCoinment Other than7 gov,3rnloperations checks items • 1 Other counts 1 lections lecti ons checks !Cleringc' I Government. I ment' I measured ,1 Items handled: 1923 1924 1925 lcj2S verage Ntimber of 411 empLyees: 1q23 1924 1925 1926 _apense: 1923 1924 1925 1926 Output per employee (index): AI' 1923 IMF 1924 1925 1926 *41 169.02 152.41 133.34 121.20 97,737 30 59,261 92,733 33 47 55,630 56,871 93,047 51,386 *5.71 6.31 30.15 25.99 24.31 4.33 4.93 5.o6 23.22 252 202 177 161 4,10 11 9 )0 45 38 37 37 100 118 100 100 113 142 193 133 158 Output per unit of cost (inde:c): 1923 1924 1925 1926 30,657 100 132 1)49 100 133 176 176 4.75 4.64 4.88 4,470 5,789 4,793 5,052 564 805 940 1,012 2.36 11.21 7.83 7.94 10 13 10 12 3.o4 1„;14 1,527 1,536 1,555 19,698 20,837 21,970 23,294 524 667 776 830 24 27 21 101 105 74 22 2,524 24 23 2,048 1,826 21 101 25 1,646 7.81 4.73 73.34 70.72 65.33 57.73 6.97 5.59 14.614 4.94 3.70 2.45 1.77 1.27 11 3.75 3.78 3.83 3 5 5 5 9 6 5 3 117 82 2.36 9.78 10.50 6.66 5.51 j13 5.33 4.37 3.49 3.03 9 0 12 5 4 9 14 8 14 8 3 3 3 0 100 96 100 124 100 112 100 156 100 117 100 159 100 173 100 100 100 142 114 122 99 93 147 154 127 136 194 319 134 16o 223 223 186 254 log 178 136 217 99 111 115 100 100 100 100 100 100 100 135 100 114 loo 133 100 98 163 212 114 140 115 169 216 Ks 72 116 91 140 99 131 151 100 155 112 116 96 91 147 16o 111 120 158 258 182 226 190 219 1923 figures not comparable with those of subseccmt years and accordingly the 1924 figures were used as the base in calculating the indices of output. 6 5 5 10 10 100 CONFIrE7TIAL 6L. :)!)9cJi OUTPUT PER FL:PIM:2 AND PER UNIT OF COST IN PRINCIPAL MFARTITNTS, 7EDERAL RESE2V71 3AF: OF YITJEAPOLIS (HEAD 07FICE) (i'rnber of items_ handled in thousands:ex ense in thousands of dollars Currency_ 1i Coupon collections Govern1Country City City checks Total for Country Return Dis- t Coin col- I colment OtAer'thrn Ii Governoperations u Clearings 1 Other items check.s co nts i ment lectionsllections Government checks measured ; 1 Items handled: 1923 19 24 1925 l926 192 *37 41 9)4 28 P number of veage r emAoyees: 1923 1924 1925 19 26 ELpense: ,. 1923 1924 i 1926 Output per unit of cost (index): 1923 1924 1925 1926 3,375 3,7oo 3,80 3,717 1.03 2i.40 5.91 5.13 5.25 661 21,293 464 197 819 19,694 582 207 739 763 19,845 18,559 494 437 187 135 172 129 2.03 2.90 1.77 83.60 63.46 58.75 1.71 54.52 4.44 5.83 4.05 3.65 9.19 8.75 3.93 9.50 10.64 11.23 9.43 8.26 3 4 3 3 143 00 ) 78 75 7 q , 7 7 100 122 133 134 100 92 100 110 117 115 16.os 16.16 15.74 15.66 *18 19 10 25 26 25 4 9 27 1+ 100 111 122 100 - 100 84 loo - 87 126 149 100 98 110 121 100 100 104 72 114 119 113 - 137 138 100 121 137 136 100 100 100 - 100 100 93 83 66 89 100 117 _ - 100 100 106 131 99 146 94 112 - 112 125 170 165 94 88 100 82 163 153 aatput per employee ndex): 1923 1924 1925 8,623 8,139 8,925 11,014 146.86 * 10.62 128.94 10.57 3.99 113.53 4.51 106.26 236 189 1925 1926 29,885 29,305 32,046 35,271 106 109 1.15 1.43 1.16 3 3 7 , , 7 7 117 134 OM* 1,624 1,134 1,007 932 3.33 2.98 2.28 1.64 11 15 - 11 16 - 11 14 - 5 4 3 12 12 - 2 100 108 - 100 90 97 130 - 105 81 142 _ 134 100 100 - 100 106 10; - 84 123 137 - 96 121 *1923 figures not comparable with those of subsequent years and accordingly the 1924 figures were used as the base in calculating the indices of output. 4 'gab , St. 5.9c CO-JFILE7TIAL OUTPUT PER EMPLOYEE AND PR UNIT OF COST IN PRINCIPAL DEPARTMENTS, FEDERAL RTTIS'PRVE BANKS OF KANSAS CITY (HEAD OFFICE) Numbcr of items handled in thoasands expense in thousands of dollars Total for GovernCity checks 1 City !Country Coupon collections DisCountry Return Curranc31 operations Coin Tment gther than GoverncolI colcounts Clearings 1 Other chedks items measured checks lectionsilections Government ment Items handled: 1923 1924 1925 .1926 Average number of employees: 1923 1924 1925 1925 7xpense: 1923 1924 1925 1926 *55 65 38 55 33,323 32,991 34,743 35,828 51,o1S 47,963 46,289 48,7o6 5,363 )4,266 )4,313 4,i372 1,152 1,156 1,199 1,212 20,054 21,613 25,119 25,792 4b7 532 123.32 106.78 92.64 89.27 *12.73 12.31 8.81 8.62 15.56 15.85 2.23 2.63 7.50 7.92 2.84 3.00 52.61 46.6o 4.51 4.17 14,00 14.87 2.48 7.09 2.58 3.94 2.49 2.00 42.37 40.22 v.00 4.63 5 4 lo 4 107 8 11 11 10 4 75 64 61. 8 8 3 6 3 3 3 210 *2L! 25 174 23 24 151 147 16 21 16 23 4 Output per employee dex): 1923 1924 1925 1926 100 121 1461 150' 100 82 121 100 103 123 120 100 81 86 Output per unit of cost (index): 1923 1924 1925 1926 100 128 153 167 100 81 121 100 105 126 120 iii 4 3 379 597 22 21 21 22 88 119 112 124 1,775 1,278 1,169 3.58 7.03 3.59 2.00 2.00 2.00 7.00 3.29 2.63 2.45 1,068 5.77 5.96 6 5 4 4 16 16 15 1?-[ 100 - 100 100 100 100 100 - 95 140 134 172 136 - 81 83 75 85 los - 119 150 185 200 159 154 170 176 133 157 - 92 91 100 109 107 112 100 72 74 90 - 100 90 106 134 100 155 208 223 100 131 142 154 100 166 171 173 100 136 134 157 100 100 81 97 96 *1923 figures not comparable with those of subsequent years and accordingly the.1924 figures were used as the base in calculating the indices of autryat. St. 5359-1 CO7FIDE'ZTIAL OUTPUT PER DTLOIM An PER UNIT OF COST IN PRINCIPAL DEPARrfENTS, FEDERAL RESETIE BAITX OF DALLAS (HIE:T OFFICE) Ti,rnher of items handled in thousands: exoense in thousands of dollars I City (Country 1 Coupon collections GovernCity checks I Total forf Return 1 Dis-Country m • col- i col- 10t1-er, than! Govern-. ment Lim n operations counts Currency items I checks Clearings 1 Other ment checks lectionsilections'Government measured I Items handled: 1923 1924 1925 1926 41, verage number of omoloyees: 1923 1924 1925 1926 Expense: 1923 1924 1925 1926 . 121 81 76 75 14 14 13 12 5 14 3 3 12 10 3 2 2 100 93 161 220 100 134 144 152 loo 14o 153 176 100 144 131 149 100 122 101 125 loo 104 95 126 100 100 173 204 100 168 183 194 100 136 149 195 100 169 163 157 .100 123 108 136 3.68 4.42 4.55 4.55 1.07 .58 .51 .85 1.79 2.00 1.16 .92 74.59 62.70 60.09 59.01 5 14 0 1 6 1 14 0 1 4 6 3 3 2 2 100 126 193 100 106 114 122 100 119 130 84 100 59 55 58 100 24 8 1 100 124 187 100 -109 113 118 100 122 128 97 100 71 67 72 100 26 10 3 20 20 19 19 100 1 135 1521 1721 1.90 1.39 1.29 .38 2.25 1.49 1.44 1.98 *55 42 24 19 Output per unit of cost (index): 1923 1924 1925 1926 5.90 5.00 4.41 4.05 462 597 644 760 14.84 15.09 14.53 13.55 146 3.48 3.00 2.60 2.0 19,288 21,630 22,357 23,225 145.16 *29.18 22.96 124.63 12.76 109.24 10.17 104.0 100 120 131 6.48 6.00 5.90 6.o4 418 436 437 472 66 Output per emnloyee (index): gib 1923 Mr 1924 1925 1926 64 66 48 55 402 5)4 lo 4 24,256 19,052 20,159 17,947 247 185 158 149 15 19 15 13 2,493 1,754 1,577 1,786 25,993 28,101 23,947 28,898 *116 78 54 1 2 2 2 - 719 545 4J3 421 100 123 116 •151 *1923 figures not comparable with those of subsequent years and accordingly the 1924 figures were used as the base in calculating the..indices.of outimt__ #Less than *500. 1IIi owIIIIINEI d St. 5359m COTTILIEYTIAL SIN FRANCISCO (IFAD OFFIn) OUTPUT PR EMPLOYEE AND PER UNIT OF COST IN PRINCIPAL DEPARTMENTS, FEDERAL RES-R1/74 BANK OF (Number of items handled in thousands; expense in thousands of dollars) Coupon collections Country u City u ry GovernCity checks Total for Ret rn Co nt DiscolOther . ari l Govern.than colment Coin Currency operations checks 1 items 1 lections lections Clearings I Other counts l ment Government checks measured Items handled: 1923 192)4 1925 .1926 lverage numbor of employees: 1923 1924 1925 1926 *31 42 46 55 113.97 *13.07 15.78 112.35 9.57 90.41 8.78 91.98 17x0ense: 1923 1924 1925 1926 190 187 147 143 Cutput per employee (index): Alk1923 1924 , 111 1925 1926 100 107 137 153 Output per unit of cost (index): 1923 1924 1925 1926 100 108 142 167 *25 32 20 18 100 ,178 . -:213 2,409 1,543 1,203 1,053 27,390 37,449 38,543 43,577 23,231 21,449 21,116 39,421 3,443 3,571 3,621 4,330 316 312 378 562 891 931 861 955 9,047 8,355 9,053 9,352 91 103 112 120 18 18 18 19 56 58 51 41 19 20 23 21 19.50 17.64 16.61 18.71 6.94 5.53 3.55 3.74 8.05 10.51 7.14 5.94 3.03 3.12 2.70 2.71 4.83 5.63 4.12 4.41 35.88 34.20 30.59 32.11 4.10 4.32 3.31 3.17 4.35 3.79 3.93 3.49 7.58 6.15 5.G4 4.97 1.65 1.30 .56 1.24 4.99 4.38 2.69 2.31 16 12 12 15 4 5 8 7 4 )42 6 13 12 11 10 3 2 1 2 7 11 59 55 43 214 2)4 26 9 100 151 165 166 100 116 118 315 100 120 173 297 '74 100 172 lo 235 173 4 9 7 7 100 79 119 170 100 96 134 199 100 90 113 117 100 97 117 116 100 107 152 170 100 114 109 133 100 127 123 110 100 135 370 147 100 73 93 94 100 79 110 160 100 92 130 213 100 92 108 114 100 99 136 143 100 112 145 170 100 107 114 144 100 118 108 92 .100 128 357 123 100 71 95 101 7 L. as the base in calculating gure s not comparable with those of subsequent years and accoOingly the 1924 figures were used the indices of output. 7
@FedFRASER