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The Papers of Charles Hamlin (mss24661) 363_08_001- Hamlin, Charles S., Scrap Book — Volume 206, FRBoard Members 205.001 - Hamlin Chgrles S Scrap Book - Volume 206 FRBoard Members •BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence To The Files From Mr. Coe Date August 1, 1941 Subject: ")'YliQ. 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 206 of Mr. Hamlin's scrap book and placed in the Board's files: VOLUME 206 Page 25 - (X-6665) Examination of Member Banks. Page 31 - Preliminary classification of loans and investments of member 4g,nks as of June 30, 1930. (Marked Confidential) Pap, -e__37 Memo to Board from Mr. Smead re preliminary classification of loans and investments of member banks as of June 30, 1930. Page 47 Deficiencies in Reserves of Member Banks During the Quarter Ending June 30, 1930. (Marked Confidential) Page 59 Letter to Board from Federal Reserve Agent Case re H.R. 10211. Page 64 Earnings & Expenses of Federal Reserve Banks, July 1930. Page 67 Memo to Board from Mr. Smead re condition of member banks as of June 30, 1930. • 4.-14 FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO X-6665 THE FEDERAL RESERVE BOARD July 26, 1930. SUBJECT: Examination of Member Banks. Dear Sir: By an act approved by the President under date of June 26, 1930, Section 9 of the Federal Reserve Act was amended and the third paragraph of Section 5240 of the United States Revised Statutes, as amended by Section 21 of the Federal Reserve Act, was further amended so as to provide that the expenses of all examinations made by Federal reserve banks may, in the discretion of the Federal Reserve Board, be assessed against the banks examined and, when so assessed, shall be paid by the banks examined. In view of this amendment, the Federal Reserve Board has reconsidered and revised the resolutions adopted by it on October 10, 1928, (set out in X-6223 dated January 26, 1929) so as to read as follows: "BE IT RESOLVED, That the Federal Reserve Board recognizes its duty under the Federal Reserve Act to keep itself informed as to the condition of all member banks; "BE IT FURTHER RESOLVED, That the Board io of the opinion that it is justified in relying upon the Comptroller of the Currency for such information as to national banks; "BE IT FURTHER RESOLVED, That whenever the reports of examination of State member banks furnished by the State authorities are not deemed satisfactory either to the Federal reserve bank of the district concerned or to the Federal Reserve Board, the Federal reserve bank or the Board shall cause to be made at least one examination or investigation each year of such character as to furnish satisfactory information; "BE IT FURTHER RESOLVED, That any entry of a member bank made for the purpose of informing the Federal reserve bank and the Federal Reserve Board, (1) whether the member bank is complying with the terms of the Federal Reserve Act, the Regulations of the Federal Reserve Board and the conditions of its membership in the Federal Reserve System and/or (2) as to the loan and investment practices VOLUME 206 PAGE 25 .4011 X-6665 -2- and. policies of the member bank and whether its uses of Federal reserve credit facilities are consistent with the purposes of the Federal Reserve Act, as these have been or may be defined by the Federal Reserve Board, shall not be termed an examination." The Federal reserve agents are charged with the duty of seeing to it that the Board's views, as covered in the above resolutions, are carried out in their respective districts. This does not mean that the Board is attempting to relieve itself of res-ponsibility and it will continue, through its examining force, to check carefully the Federal reserve agents' examination departments. While the Board realizes that it is not possible to lay down a uniform detailed procedure applicable to each Federal reserve district, the following instructions will serve as a guide to the Federal reserve agents in the performance of their duties: 1. The Comptroller of the Currency is a member of the Federal Reserve Board and under the law is dhared with the responsibility of enforcing the terms of the National Bank Act and also of the Federal Reserve Act. The Board therefore relies upon the Comptroller of the Currency to perform his duties and it will not be necessary for the Federal reserve agent to duplicate the work. 2. In the opinion of the Board, State reports of examination can be relied upon in the great majority of cases to furnish the necessary information to the agents. 3. If a State examination is unsatisfactory, and an investigation will not provide sufficient information upon which the agents may act intelligently, a complete examination should be made for which the member bank should be charged. It is realized, however, that in some instances unusual circumstances may exist which would warrant the Board's exercising the discretion vested in it under the recent amendment and waiving Charges for specific examinations. Any case which, in the opinion of the Federal reserve agent, warrants such special consideration should be submitted to the Board in advance, with a complete statement of the reasons why it is considered desirable to have the examination charges waived by the Board. Examinations of State banks incident to their admission to membership in the System may be made without charge. • 111 X-6665 -3.. 4. Any investigation of a member bank made for the purpose mentioned in the last paragraph of the resolution of the Board set out above may be conducted by the Federal reserve agent without charge and without reference to the Board. 5. The Federal reserve agent will continue to furnish the Board with an analysis on r. R. B. Form 212 of each state member bank examination report received by him whether made by State authorities or under his own supervision, unless in some exceptional case it is desired that the Board should have before it the complete report of examination. 6. If the Federal reserve agent has evidence in the form of letters or otherwise, that officers and directors of State member banks have had their attention called to violations of the law and unsound banking practices by State authorities, it is not necessary for the agent to duplicate this work. 7. If this supervision is not conducted by State authorities the Federal reserve agent is directed to take such action, as in his opinion, will discharge the responsibilities of the Board. 8. When a State member bank fails to correct irregularities within a reasonable time so as to show material improvement in its condition, the Federal reserve agent will be expected to lay the information before the directors of his bank and ask them to make a formal recommendation to the Federal Reserve 'Board, with reasons, as to whether or not the State member bank Should continue as a member. This letter supersedes and repeals the letter of January 26, 1929 (X-6223) on the same subject. Very truly yours, R. A. Young, Governor. TO ALL FEDERAL RESERVE AGENTS. FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD July 30, 1930. St. 666s. SUBJECT: Preliminary classification of loans and investments of member banks as of June 30, 1930. Dear Sir: In order that the System might have available at the earliest practicable date a classification of the loans and investments of all mer:ber banks as of June 30, the Board on July 16 asked the Federal reserve agents to have the loan and investment figures tabulated from the June call reports of both National and State member banks and to furnish the figures to the Board. These figures have been received by the Board and I am enclosing herewith a statement showing the data for all member banks, member banks in New York City, in Chicago, and in other reserve cities, and for country banks. The figures for National banks have not been made public by the Comptroller nor figures for State banks by the Federal Reserve Board. It will be appreciated, therfore, if you will treat the statement as confidential. Very truly yours, Roy A. Young, Governor. TO ALL GOVERNORS AND AGRITS.* VOLUME 206 PAGE 31 CONFIDENTIAL Total loans and investments Date Oct. Dec. 1,29, Mar. June Oct. Dec. 1930, Mar. June 3 31 27 29 4 31 27 30 34,929 35,684 35,393 35,711 35,914 35,934 35,056 35,633 1928, Oct. 3 Dec. 31 1929, Mar. 27 June 29 Oct. 4 Dec. 31 40, Mar. 27 June 30 7,197 7,951 7,726 8,160 8,150 8,774 8,238 8,798 1928, Oct. 3 Dec. 31 1929, Mar. 27 June 29 Oct. 4 . Dec. 31 -1930, Mar. 27 June 30 1,910 1,910 1,793 1,767 1,823 1,757 1,717 1,845 ALL MEMBER BANKS -- PRELIMINARY CLASSIFICATION OF LOANS AND INVESTMENTS ON JUNE 30, (Amounts in millions of dollars) a Accept- Bills, ac- Commercial Loans to banks' Loans on securities, ances ceptances, paper exclusive of loans to banks Total payable etc., pay*. bought in On All To brokers in able in for- open secur- other Total and dealers To U. S. eign coun- market ities In New !Outside others tries York New York TOTAL - ALL MEMBER BANKS 24,325 go 101 548 8,545 1,899 850 5,796 457 103 25,155 109 390 9,903 2,556 538 6,373 975 24,945 146 376 9,419 1,879 548 93 1,014 6,526 25,658 log 90 249 9,759 2,025 921 6,813 670 26,165 93 223 9,994 1,885 64o 70 7.170 939 26,150 80 212 291 714 10,148 1,660 803 7,685 175 25,119 267' 10,074 2,344 7,024 79 706 499 -'26o 71 511 25,1981 169 230 301 10,450 2,357 823 7,270 NEW YORK CITY* 5,254 50 63 287 2,416 45 880 55 1,491 6,018 61 61 288 3,347 1,639 1,658 29 50 52 251 2,846 1,102 5,754 1,692 59 52 37 6,341 58 21 3,236 1,359 314 58 63 1,814 6,344 59 33 302 46 3,040 1,096 1,898 6,683 128 46 21 322 3,401 1,202 55 2,145 /92 14 6,192 89 49 107\ 3,412 1,477 6o 1,876 6,594 11414 29 113 3,928 1,873 35 68 78 1,987 CHICAGO* 1,505 1 21 3 914 119 252 543 35 1,519 1 1 14 982 40 75 309 , 1,456 0 10 62 806 5 18 311 rg 77 1,433 1 6 67 774 242 48 3 484 1,510 4 1 4 6s 820 59 257 504 gg 1,448 9 784 5 11 240 5 533 1,406 3 11 8' gog 33 194 140 474 1,482 2 19 56 143 7 816 229 487 99 *Central reserve city banks only. 1930, COMPARED WITH PRECEDING CALL DATES St. 6666 Investments Real estate loans u. S. All Govern- Other On On other other Total ment securfarm loans real secur- ities land estate ities 421 412 403 414 392 388 394 387 2,668 2,711 2,720 2,750 2,760 2,803 2,776 2,740 11,507 10,991 11,240 11,618 11,988 11,515 10,595 10,339 10,604 10,529 10,448 10,052 9,749 9,784 9,937 10,435 4,386 4,312 4,454 4,155 4,022 3,863 4,085 4,059 6,218 6,217 5,994 5,898 5,727 5,921 5,852 6,376 2 1 130 132 148 173 175 169 150 134 2,253 2,100 2,361 2,480 2,726 2,595 2,252 2,127 1,942 1.933 1,972 1,819 1,807 2,091 2,046 2,204 1,130 1,094 1,135 1,006 989 1,112 1,150 1,147 813 839 838 813 817 979 897 1,057 3 3 2 2 2 2 2 2 41 39 19 22 19 19 18 17 487 44o 544 559 592 535 472 521 405 391 337 334 312 309 310 363 191 174 164 159 153 116 146 160 214 217 172 176 160 193 164 203 _ _ _ _ _ CONFIDENTIAL ALL MEMEER BANKS -- PRELIMINARY CLASSIFICATION OF LOANS AND INVEST:LENTS ON JUNE 30, 1930, CO1RARED WITH PRECEDING -GALL LATES (Amounts in millions of dollars) St. 6666a Total loans and investments Total L o a n s Accept- Bills, acCommercial Loans to banks ceptances, ances paper payable etc„paybought in On All in able in foropen seaur- other U.S. eign counmarket ities tries Loans on securities, Real estate loans exclusive of loans to banks To brokers On On other Total and dealers To farm real In New Outside others land estate York New York All other loans Investments U. S. GovernTotal ment securities Other securities RESERVE CITY BANKS 41028, Oct. Dec. 1929, Mir. June 3 31 27 29 12,211 12,156 12,132 12,065 8,681 8,702 8,733 8,789 5 16 35 16 27 33 27 22 178 136 136 83 179 173 196 241 3,109 3,293 3,358 3,294 522 465 405 302 435 509 538 511 2,152 2,318 2,415 2,480 124 118 112 119 1,368 1,387 1,376 1,360 3,691 3,530 3,546 3,454 3,492 3,400 3,654 3,276 1,703 1,662 1,732 1,607 1,827 1,791 1,668 1,670 Oct. 4 Dec. 31 1930, Mar. 27 June 30 12,161 12,029 11,858 11,874 9,085 9,084 8,752 8,544 6 43 55 17 27 24 24 19 71 102 209 246 225 258 3,462 3,440 101' 3,405 129 3,352 354 239 469 253 510 425 360 435 2,558 2,775 2,576 2,664 110 110 113 111 1,360 1,428 1,411 1,394 3,823 3,679 3,330 3,179 3,075 2,944 3,105 3,330 1,519. 1,368 1,516 1,526 1,557 1,576 1,590 1,804 TT.04 99 COUNTRY BANKS 1928, Oct. 3 Dec. 31 1929, Mar. 27 June 29 13,612 13,667 13,741 13,719 Oct. 4 Dec. 31 1930, Mar. 27 13,780 13,375 13,243 13_117 8,768 8.578 111 .Time ' 'r.) DIVISION OF BANK OPERATIONS FEDERAL RESERVE BOARD JULY 29, 1930. 8,885 8,915 9,001 9,096 24 30 44 33 17 8 8 7 9,226 27 6 8,936 33 27 7 195 211 192 140 46 37 39 49 2,106 2,281 2,409 2,455 378 376 354 316 117 107 114 105 1,610 1,799 1,942 2,034 234 290 289 291 1,129 1,154 1,176 1,195 5,075 4,904 4,843 4,926 4,727 4,751 4,740 4,623 1,362 1,382 1,424 1,384 3,365 3,370 3,316 3,240 144 45 5 163 45 4 4 207 175 2,671 2,522 2,449 2.353 376 208 258 131 125 83 93 ql 2,170 2,231 2,097 2.131 279 276 279 274 1,206 1,186 1,196 1_14 4,847 4,705 4,541 4_ i 4,554 4,439 4,475 LLcc 1,361 1,267 1,273 3,193 3,172 3,202 f 14 10 51\ 47 1 22 -46,4 •914 witarh July 29, 1930 Preliminary classification of loans and investments of member banks as of June 30, 1930 Federal Reserve Board Sneed CONFIDENTIAL In order that the Board might have as early as practicable a classification of loans and investments of all member banks as of June 30, the Federal reserve agents were asked to tabulate the figures from the call reports of both State and National bank members and wire them to the Board. The figures furnished by the Federal reserve agents, which are subject to minor corrections when all reports are received and apparent discrepancies reconciled, are shown in the attached confidential statements. The statements include figures for national as well as state banks and no publicity should therefore be given to them without first securing the approval of the Comptroller of the Currency as the national bank figures have not yet been made public by him. The principal changes as compared with the Spring call of this year and with the June call of last year are as follows: Changes since March 27, 1930 call. Aggregate loans and investments of all member banks increased $577,000,000 during the quarter, of which $89,000,000 was in loans and nearly $500,000.000 in investments. Holdings of Government securities declined somewhat, *bile holdings of other securities increased more than $500,000,000. The increase in security holdings is fairly well distributed among the different classes of banks. Total loans on securities, exclusive of loans to banks, show a net increase of $376,000,000, practically the entire amount representing loans made to non-broker customers or to brokers and dealers located outside of New York. New York city banks reported an increase of nearly Otoom0,000 in loans to New York brokers and dealers, but this was practically offset by decreases at member banks outside of New York. The increase in brokers' loans of New 'fork banks is considerably smaller than the reduction during the same period in brokers' loans made by New York banks for the account of correspondents and "others.' Banks outside New 'fork, as previously stated, reduced their loans to New York brokers substantially, but this was largely offset by increases in loans made to brokers and dealers located outside of New 'fork and in security loans made to non-broker customers. New York banks also increased their holdings of security loans to non-broker customers. VOLUME 206 PAGE 37 -2 "All other" loans declined $256,000,000 at all member banks, most of the reduction being reported by New 'fork city banks although reserve city banks (outside of New York and Chicago) also reported a substantial decline. Holdings of commercial paper bought in open market aggravated $511,000,000, the htzhest figure reported since this item has been shown senarately in member bank condition reports. Changes 10.400 JUAO 1929. Aggregate loans and investments at the end of June 1930 were not far below the corresponding call of last year. Total loans, however, were $460,000,000 below June of last year, while investments were about 000,000,000 higher. Total loans on securities on June 30 of the present year, exclusive of loans to banks, aggregated $10,450,000,000, or approximately $700,000,000 above the June call of last year. Of this increase, $330,000,000 represents an increase in loans to New York brokers and dealers and 060,000,000 an increase in security loans MSde to non-broker customers. Security loans made to brokers and dealers outside of New York declined. $100,000,000. "All other" loans declined nearly $1,300,000,000 during the year, the redtztion being fairly well distributed amonga 11 classes of member banks. Holdings of commercial paper bought in open market increased by more than $260,000,000 during the year and holdings of acceptances about $60,000,000. The holdings of open market commercial paper are distributed mostly among country banks and reserve city banks other than New York and Chicago. Holdings of acceptEnces on the other hand are concentrated. Largely at member banks in New York city. Loans to other banks made by member banks declined during the year from $670,000,000 to $530,000,000. 446., CONFI DT TIAL Total loans and investments Date 8, Oct. Dec. T29, Mar. June Oct. Dec. 1930, Mar. June 3 31 27 29 4 31 27 30 34,929 35,684 35,393 35,711 35,914 35,934 35,056 35,633 1928, Oct. 3 Dec. 31 1929, Mar. 27 June 29 Oct. 4 Dec. 31 0, Mar. 27 June 30 7,197 7,951 7,726 8,160 8,150 8,774 8,238 8,798 1928, Oct. Dec. 1929, Mar. June Oct. Dec. 1930, Mar. 3 31 27 29 4 31 27 1,910 1,910 1,793 1,767 1,823 1,757 1,717 7n 1 gag 1ii :Nino ALL MEMBER BANKS -- PRELIMINARY CLASSIFICATION OF LOANS AND INVESTMENTS ON JUNE 30, (Amounts in millions of dollars) L o a n s lAccept- Bills, ac- Commercial Loans to banks Loans on securities, ances ceptances, paper exclusive of loans to banks Total payable etc., pay- bought in On All To brokers in able in for- open secur- other Total and dealers To U. S. eign coun- market ities In New Outside others tries York New York TOTAL - ALL MEMBER BANKS 24,325 so 101 457 548 8,545 1,899 850 5,796 25,155 109 103 390 9,903 2,556 975 538 6,373 24,945 146 376 548 93 9,419 1,879 1,014 6,526 25,658 108 90 249 67o 9,759 2,025 921 6,813 26,165 228 64o 93 70 9,994 1,885 939 7.170 26,150 212 so 291 714 10,148 1,660 803 7,685 25,119 175 499 ,7260 267 10,074 2,344 79 7,024 706 25,198 169 71 511 230 301 10,450 2,357 823 7,270 NEW YORK CITY* 5,254 50 63 287 55 2,416 sgo 45 1,491 6,018 61 61 29 288 3,347 1,639 1,658 50 5,754 59 52 251 2,846 1,102 37 52 1,692 6,341 58 21 58 314 3,236 1,359 63 1,814 6,344 59 8 33 302 3,040 1,096 46 1,898 6,683 128 46 21 322 3,401 1,202 2,145 55 6,192 9. 4o 49 /92 107 3,412 1,477 6o 1,876 6,594 144 29 35 118 3,928 1,873 78 68 1,987 1 1,505 1,519 1,456 1,433 1,510 1,448 1,406 1 LLSZ2 1 1 0 1 1 9 3 3 1 5 3 4 5 11 21 14 10 6 4 5 33 2 10 ggIfZ CHICAGO* 35 4o 62 67 68 88 8' 7 914 982 806 774 820 784 gos Wig C.J.LAJ *Central reserve city banks only. 119 75 18 48 59 11 140 on 1930, COMPARED WITH PRECEDING CALL DATES St. 6666 Investments Real estate loans U. S. All Govern- Other On On other other Total ment securfarm real loans secur- ities estate land ities 421 412 403 414 392 388 394 387 2,668 2,711 2,720 2,750 2,760 2,803 2,776 2,740 11,507 10,991 11,240 11,618 11,988 11,515 10,595 10,339 10,604 10,529 10,448 10,052 9,7149 9,7814 9,937 10,435 4,386 4,312 4,454 4,155 4,022 3,863 4,085 4,059 6,218 6,217 5,994 5,898 5,727 5,921 5,852 6,376 2 1 130 132 148 173 175 169 150 134 2,253 2,100 2,361 2,480 2,726 2,595 2,252 2,127 1,942 1,933 1,972 1,819 1,807 2,091 2,046 2,204 1,130 1,094 1,135 1,006 989 1,112 1,150 1,147 813 839 838 813 817 979 897 1,057 41 39 19 22 19 19 18 487 44o 544 559 592 535 472 405 391 337 334 312 309 310 191 174 164 159 153 116 146 214 217 172 176 160 193 164 17 grl 1g7 1 gn DrIl - 252 309 311 242 257 240 194 r8 77 484 504 533 474 3 3 2 2 2 2 2 220 1127 9 543 CONFIDE.TTIAL ALL MEMBER BANKS -- PRELIMINARY CLASSIFICATION OF LOANS AND LaVESTILENTS ON JUNE 30, 1930, COMPARED WITH PRECEDING -CALL LITES (Amounts in millions of dollars) St. 6666a Total loans and investments • Total L o a n s Accept-IBills, acCommercial Loans to bank; ances ceptances, paper payable etc„paybought in On All in able in foropen seaur- other U.S. eign counmarket ities tries Loans on securities, Real estate loans exclusive of loans to banks On To brokers On other Total farm and dealers To real Outside New others land estate In New York York All other loans Investments U. S. GovernTotal I ment securities Other securities RESMIVE CITY BANKS 4R28, Oct. Dec. 1929, M'N.r. June 3 31 27 29 12,211 12,156 12,132 12,065 8,681 8,702 8,733 8,789 5 16 35 16 27 33 27 22 178 136 136 83 179 173 196 241 3,109 3,293 3,358 3,294 522 465 405 302 435 509 538 511 2,152 2,318 2,415 2,480 124 118 112 119 1,368 1,387 1,376 1,360 3,691 3,530 3,546 3,454 3,492 3,400 3,654 3,276 1,703 1,662 1,732 1,607 1,827 1,791 1,668 1,670 Oct. 4 Dec. 31 1930, lhr. 27 June 30 12,161 12,029 11,858 11,874 9,085 9,084 8,752 8,544 6 43 55 17 27 24 24 19 71 102 209 246 225 258 3,462 3,440 a01‘ 3,405 129 3,352 354 239 469 253 510 425 360 435 2,598 2,775 2,576 2,664 110 110 113 111 1,360 1,428 1,411 1,394 3,823 3,679 3,330 3,179 3,075 2,944 3,105 3,330 1,519. 1,368 1,516 1,526 1,557 1,576 1,590 1,804 /1-04 99 IN 1928, Oct. 3 Dec. 31 1929, Mar. 27 June 29 13,612 13,667 13,741 13,719 8,885 8,915 9,001 9,096 24 30 44 33 17 8 8 7 195 211 192 140 Oct. 4 Dec. 31 1930, Mar. 27 13,780 13,375 13,243 9,226 8,936 8,768 27 33 27 6 144 45 5 4 4 163 207 45 0 Jime ...1 .1 - 1171 DIVISION OF BANK OPERATIONS FEDERAL RESERVE BOARD JULY 29, 1930. .1 7 -1_7 46 37 39 49 / 14 10 , - CCUN1RY BANKS 2,106 2,281 2,409 2,1465 378 376 354 316 117 107 114 105 1,610 1,799 1,942 2,034 294 290 289 291 1,129 1,154 1,176 1,195 5,075 4,904 4,843 4,926 4,727 4,751 4,740 4,623 1,362 1,382 1,424 1,384 3,365 3,370 3,316 3,240 2/671 p02,522 2,44, 376 208 258 125 83 93 2,170 2,231 2,097 279 276 279 1,206 1,186 1,196 4,847 4,705 4,541 1,361 1,267 1,273 3,193 3,172 3,202 1. 1 Q1 211 2714- 1 4,554 4,439 4,475 I4Q 1 q4 )4 i 1 7 PPA •••• Led-, C 0 7:FIDENTIAL For use of Federal Reserve Board only Federal Reserve ViottV' , Ilkton New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Illpr. - June 1930 Otkil. - Mar. 1930 Apr. -June 1929 DEFICIENCIES IN RESERVES OF MEMBER BANKOISF RING THE QUARTER ENDING JUNE 30, 1930 Total member banks Juno 30 Number of banks penalized In Federal In Total reserve other bank and reserve branch cities** cities Country banks Number of Number banks of subject to banks progressive subject to penalties maximum *** penalty (a) St. 6685 Average daily deficiencies on which penalties were assessed Federal Total reserve Other bank and reserve Country branch cities banks cities (In thousands of dollars 157 37 120 517 262 255 14o 23 117 266 38 16 212 401 923 756 781 63 268 114 107 10 39 7 13 _ _ 2 53 229 107 92 4 *2 7 15 1 3 486 409 1,135 552 155 120 248 189 19 15 17 39 2 2 12 - 134 103 219 150 24 30 *31 *20 4 15 * 6 * 2 307 227 452 205 16 38 20 1 94 77 - 291 188 338 128 664 890 719 599 123 149 109 156 2 11 15 22 11 4 3 121 127 90 131 *19 20 *16 15 * 3 127 99 213 115 15 9 14 21 12 10 1 112 78 189 93 7 * 2 1 8,315 1,801 209 36 1,556 203 44 2,825 8,407 570 134 1,830 2,121 208 1,583 39 241 67 3,63 4 746 2,15 461 8,707 7 2,427 291 I 1,809 57 236 52 1 5,694 1,243 392 *Represents the number of banks which 4,05 9 would have been subject to such progress ive penalties if they had been applied, as Federal reserve bank applies only the basic rate. **Includes one bank each in Savannah, Ga., and Kansas City, Kans., whose requ ired reserves are computed semi-weekly as the case of banks located in Federal in reserve bank and branch cities. ***Represents country banks, except 1 bank in the 8th district located in a Federal reserve bank or branch city and in the 7th district and 1 bank in the 2 banks 4th district locate in "other" rese rve cities. (a)Exclusive of banks that suspended duri ng the quarter. FEDIMAL RESERVE BOARD DiVISION OF BANK OPERATIONS AUGUST 12, 1930 411 VOLUME 206 PAGE 47 • FIDEIRA.L RESMIVE BANK OF NEV YORK June 30, 1930. Federal Reserve Board, Washington, D. C. Dear Sirs: We have the Boardls letter dated June 24, 1930, lip.6640 enclosing copy of H.R. 10211 together with a favorable report thereon by the Cdmnittee on Banking and Currency. You have asked for our cannents concerning this bill which would provide for a change in the distribution of earnings of the Federal Reserve banks, the purpose being to increase the return of the member banks. While we do not wish to tke the definite position that we would not favor any legislation designed to increase the return to member banks, we nevertheless have some doubt of the wisdom or practicability of changes in this direction at this time. While there appears to have been, during the past year or two, considerable discussion about this matter of increasing the dividend return, it seems to us that much of this discussion has been predicated upon a lack of appreciation, first, of the amount of earnings Which might be distributed and, second, of the principles involved and the problems that would be encountered in making such a distribution. To illustrate, the report of the House Committee on Banking and Currency, which is attached to the copy of the bill which you have sent us, cites the earnings of the Federal reserve banks since their establishment, also the amounts paid to the Federal Treasury as a franchise tax. It makes no mention of the fact, however, that 74 of the total net earnings of the system and 91% of the total paid to the Treasury as a franchise tax resulted from operations during the fivewar and post war years, 1918 to 1922 inclusive. A study of the earnings of the system for the past six years shows that the net earnings of the systen equaled approximately 14% of paid in capital, or 9% in excess of the present 6% dividend. This average, however, was very materiallrincreased by the larger earnings in the years 1926 an: 1929. For the four years, 1924 to 1927 inclusive, net earnings averaged slightly less than 9% of naid-n capital, or 3% above the present dividend rate. These figures are all before making any transfers whatever to surplus. During the same six year period after making transfers to surplus up to 100% as authorized by the present 19.17, there remained for franchise taxe;., and further additions to surplus, an average of less than 2/3 of 1% in paid in capital. The present indications are that the year 1930 will produce earnings no more than sufficient to pay the present dividend, indeed it does that. It seems probable, therefore, that it is only in abnormal years that the earnings of the reserve system are likely to produce more than a reasonable margin above the present dividend requirements. f"N. VOLUME 206 PAGE 59 • -2- • There seem to be two principal arguments against the proposed bill to increase the return to member banks: First - The pressure Which , ould inevitably result for greater earnings. Under the present law with respect to the disposition of earnings, there is no pressure for increased earnings to pay larger dividends. Neither is there pressure from the directors of the reserve banks or others for the purpose of making a profit and loss showing. The reserve system was not organized for profit, and any effort, no matter how slight, to create profits could not be other than detrimental to the execution of the functions and policy of a central bank. Second .The bill makes no provision for the payment of equal dividends in all districts. Any plan for the payment of increased dividends should in our judgment necessarily include provision for the same dividend in all districts. This could only be accomplished through some sort of an arrangement for the pooling of earnings, which in effect means the pooling of expenses and losses. This obviously presents some difficulty. On the other hand, unless provision is mnfie for the payment of the same dividend in all districts there would be serious danger of a competition for earning assets to such an extent as might be easily detrtnentsl to the operation of the banks and the execution of any consistent policy. So far as the particular bill under consideration is concerned, it does not include any definite proposal as to the manner of determining the amount of the franchise tax. The bill provides - "She Federal Reserve Board shall deternine as nearly as may be possible what proportion of such net earnings was derived from the issuance of FeJeral reserve notes and what proportion was derived from the rediscount, investment and other banking activities of the Federal Reserve Bank." This leaves with the Board the problem of determining what proportion of the earnings shall be paid to the Government as a franchise tax, and what proportion shall be distributed to member banks. In our view it is practically impossible to determine upon a basis Which would be equitable and satisfactory. This proposed legislation appears to be patterned somewhat after the Laglish law with respect to the profits of the Bank of &gland where, we understand, the net profits of the issue departnent of the bank are paid to the Treasury, the amount of such profits being determined in such a manner as may be agreed upon between the Treasury and the bank. These profits have, we believe, been fixed on the basis of the securities held by the note issue department as collateral security for notes outstanding, less expenses of that department. The conditions surrounding the issue of notes by the Bank of England are quite different from those surrounding the issue of Federal • —3 41111 reserve notes, and it would not ap2ear that the net profits resulting therefrom could be determined in the same manner. If, however, these profits were to be determined on the basis of the earnings on the collateral pledged as security for the notes, there would immediately result a situation where, by Changing the proportions of gold and rediscounted paper pledged as collateral, the arrount of franchise tax could be arbitrarily increased or reduced without any Change necessarily taking place either in the amount of notes outstanding, or in the total earnings of the reserve banks. A. nuMber of different ways suggest thenselves whereby the net profits resulting from the note issue privilege might be determined, but they are all arbitrary and subject to ready manipulation. It is in fact quite possible that the formula adopted might under given conditions result in paying the Treasury a larger franchise tax than that provided by the present law. Considerable publicity was recently given the report an this subject of the Economic Policy Commission of the American Bankers Association that caamittee after a careful study of the question having recommended against any increase in the dividend. The President of the New York State Bankers Association, in his annual report recently presented, commented favorably uon this report and himself recommended against any agitation for an increase in the dividend. A review of the record would indicate that normal earnings above present dividends will not be so great as to justify a change in the law at this time, or at least until conditions ebange quite substantially. The nossibility of creating a situation where pressure for earnings might easily prove detrimental to reserve system policy is of fundamental importance. Very truly yours, (Signed) J. H.Case Pederal Reserve Agent. CONFIDENTIAL Not for publication St. 6682 LEVE BAITKS, JULY 1930 EaRNINGS AND EXPE:SES OF FEDERAL RES, Month Earnings from - Federal Discounted bills erve B-tnk Purchased bills U. S. securities Per cent 3.2 1.6 90,458 54,927 3.9 144,058 3,957 13,723 47,343 3.5 13,149 18,679 35,044 11,149 38,426 30,179 213,855 66,595 8,309 9,981 32,800 1,634 126,794 157,250 341,141 136,585 118,764 113,490 268,559 108,689 119,381 124,107 269,894 109,286 7,413 33,143 71,247 27,299 1.5 7.3 13,766 9,652 8,613 26,738 69,767 72,516 76,507 96,387 2,174 24,190 1,500 4,864 100,527 142,306 75,442 142,374 106,205 191,420 75,928 142,962 106,507 194,030 22,472 Richmond Atlanta Chicago St. Louis 56,910 98,411 59,442 57,207 Minneapolis Kansas City las 11111Francisco 14,820 TOTAL 274,763 1,471,903 700,570 July 1930 774,374 300,512 1,478,168 June 1930 345,940 507,011 4,677,113 July 1929 10,385,110 Jan.-July 1930 7,429,701 4,516,243 192927,856,272 6,542,851 4,144,216 E BOARD \BANK OPERATIONS 1'41930. Total $154,123 539,4g3 164,697 208,823 Cleveland FEDERAL R.E DIVISION AUGUST Exclusive of cost of F.R.Currency $152,545 537,821 162,853 206,865 $111,744 420,791 131,078 39,815 34,342 Total $1F6,767 629,941 219,624 256,166 $30,574 81,428 3,499 35,948 Other sources 1930 Current net earnings Ratio to paid-in Amount capital $32,644 $36,769 99,903 81,090 75,913 Boston New York July Current expenses $7,680 27,819 138,6 .31 435,320 196,318 1,398,677 i,1465,3514 126,435 162,331 2,585,867 2,185,027 2,988,374 2,180,985 5,726,382 2,256,921 23,729,736 15,400,150 40,008,703 15,483,286 (a) Deficit. January Current net earnings $267,820 3,193,404 845,715 765,603 July 1930 Available for reserves, Dividends accrued surplus and franchise tax* $409,590 (a)$142,627 1,650,309 264,594 152,5g2 555,136 2,363,151 583,069 6.1 98,927 451,099 717,243 306,755 208,413 (a)13',loo 189,414 258,995 707,725 (a)19,811 118,642 185,228 24,599 (a) 656 19,928 (a)31,699 9.14 165,852 107,953 151,405 153,649 398,269 376,646 2,209,221 744,998 2,243,376 2,400,419 3,325,963 16,784,158 6,945,578 17,697,453 22,:i11,250 2.6 5.3 24.4 7.0 4.2 (085,564 5.4 24.9 194,144 24,580 64,425 (a)240,635 21,352 ( )509,970 6,945,578 6,013,002 22,311,250 1,481,756 5,403,050_16,2)40,8614 *After E-ijustment for current profit and loss entries, purchases of furniture and equipment, etc. VOLUME 206 PAGE 64 Form No. 131 Offic'e Correspontence To reitsral lie'MO Mr. Isms& From, Baird FEDERESERVE AL R BOARD flat_ Minot 11, 1930 Subject:Condition of amber banks as of Jim 30, 2930 •/0 2-8495 Under date of July 29 the Board was farniihed with a preliminary classification of loans and investments of all member banks oa Jule 30, 1930, compared with preceding call dates. Mistime based on tabulations prepared by the Pederal reserve agents in advance of the completion of the Omptroller's abstract and the Board's comeolidated member bank call rtoort. Th$ final tabulations have now been completed and there are attached hereto (a) Statements giving a classification of loans, investments, deposits and borrowings of all member banks, central rertrve city banks, reserve city banks and country banks on eadh call date from October 3, 192$ to June 30, 1930. (b) Resources and liabilities and a classification of loans and 1nvest1Lents, deposits and borrowings of all member banks in each lederal reserve district as of June 30, 1930. VOLUME 206 PAGE 67 26/ ALL 1.121:113. BANKS Total loans Acceptand Total ances investPayable ments in U. S. Date Oct. Dec. ,fn4. , June 3 31 27 29 314,929 35,63' 35,393 35,711 24,325 25,155 24,945 25,658 so 109 146 103 Oct. Dec. 1930, Mar. June 4 31 27 30 35,914 1 35,934 35,056 35,656 26,165 26,150 25,119 25,214 53 212 175 170 192o, Oct. Dec. 1929, Mar June Oct. Dec. 41130, Mar. June 3 31 27 29 4 31 27 30 7,197 7,951 7,726 8,16o 8,150 8,774 6,238 6,758 5,254 6,018 5,754 6,341 6,344 6,683 ,-, ,,.1._,.OP ,) . 6,596 50 61 59 58 59 128 39 144 1928, Oct. Dec. 1929, Mar. June Oct. Dec. 1530, Mar. June 3 31 27 29 4 31 27 30 1,910 1,510 1,793 1,757 1,323 1,757 1,717 1,849 1,505 1,519 1,456 1,433 1,510 1,448 1,406 1,483 1 1 6 1 1 o 3 2 i•CA. • CLASSIFICATIO17.- OF LOANS AND INVEST=ITS ON JUNE 50, 1930, COMRARED WITH PRECEDIr; CALL DAT:S (Amounts in millions of dollars) st. 6681 Investments Bills, ac- Commercial Loans to banks Loans on securities Real estate loans U. S. ceptances, paper exclusive of loans to banks All Governetc., pay- bought in On All To brokers On On other other Total ment able in for- open secur- other Total and dealers To farm real loans secureign coun- market ities In New Outside others lend estate ities tries York 1 New York TOTAL - ALL ME=R BANKS 101 457 548 8,545 1,399 421 2,668 11,507 lo,604 4,386 850 5,r6 103 2,556 390 538 9,903 412 2,711 10,591 10,529 4,312 975 6,373 376 9 ,1419 1,875 1,014 548 93 6,526 403 2,720 11,240 10,448 4,454 90 249 670 921 6,813 9,759 2,025 414 2,750 11,618 10,052 4,155 70 228 640 9,994 1,885 392 2,760 11,983 9,749 4,022 939 7,170 80 291 714 10,14 1,660 803 7,685 388 2,803 11,515 9,784 3,863 73 726o 257\ 10,074 2,344 459 706 7,024 394 2,775 10,,595 9,937 4,085 501 230 78 305 10,425 2,365 819 7,22 586 2,769 10,349 10,442 4,061 NEW YORK CITY* 63 237 55 2,416 830 145 1,451 130 2,253 1,942 1,130 Si 29 283 3,347 1,639 50 1,658 132 2,100 1,933 1,094 52 251 37 2,846 1,102 52 1,692 148 2,361 1,972 1,135 21 J- 8 314 3,236 1,359 63 1,,14 2 173 2,480 1,819 1,006 33 302 3,343 1,096 46 1,338 1 175 2,726 1,807 5L's 46 21 322 3,401 1,202 5,5 2,145 2,091 1,112 2,595 40 49 /1 52 3,412 1,477 60 1,875 130 2,252 2,046 1,150 29 35 3,906 1,6,33 78 68 1,554 157 2,14 2,203 1,147 CHICAGO* 21 3 314 119 35 252 543 3 487 4o5 191 1 14 40 982 75 309 3 538 440 39 351 174 10 5 62 806 18 477 311 2 19 544 164 337 6 3 67 774 43 242 484 2 22 159 334 555 4 4 597 63 820 Rn4 2 19 .-, Rrd 312 1 153 -T1 5 5 784 11. 240 2 533 19 309 116 535 11 33 Do 8\ 808 -140 194 474 2 472 18 310 146 19 56 43 oc 316225 7 487 2 _,, 18 366 160 521 * Central reserve city banks only. Other scourities 6,218 ,D,217 5,554 5,898 5,727 5,921 5,852 6,380 813 839 838 810 317 979 897 1,056 214 217 172 176 16o '93 164 205 ATT, MEMBER BANKS -- CLASSIFICATION 0? LOANS AND INVESTMETS ON JUNE 30, 1930, COEPARED WITH PRECEDING CALL DATES (Amounts in millions of dollars) Date 411 1928, Oct. Total loans and investments !Accept- Bills, acCommercial Loans to banks ances ceptances, paper Total payable etc.,paybought in On All I in able in foropen secur- other U. S. eign counmarket ities tries 1 Loans on securities, Real estate loans exclusive of loans to banks To brokers On On other Total and dealers To farm real In New ,Datside others land I estate York I-Jew York All other loans St. 6681 Investments ' U. S. Total Government securities Other securities RESERVE CITY BANKS 3 Dec. 31 1929, Mar. 27 June 29 12,211 12,1561 12,132 12,055 8,681 8,702 8,733 8,789 35 16 Oct. 4 Doc. 31 1930, Mar. 27 June 30 12,151 9,o85 12,029 9,084 11,858 8,752 11,852 s,533 0 43 55 17 27 33 27 22 178 135 '36 83 27 24 71 102 209 238 24 26 179 173 195 241 225 25s fi04 99 101\ 128 3,109 3,293 3,358 3,294 522 465 405 302 435 509 538 511 2,152 2,318 2,415 2,480 124 113 112 119 1,368 1,387 1,376 1,350 3,591 3,530 3,546 3,454 3,492 3,400 3,654 3,276 1,703 1,662 1,732 1,607 1,827 1,791 1,668 1,670 3,462 3,440 3,405 3,348 354 239 469 253 510 425 360 431 2,598 2,775 2,576 2,563 110 110 113 110 1,360 1,428 1,411 1,394 3,823 3,579 3,330 3,172 3,075 2,9/1 3,105 3,319 1,519 1,368 1,516 1,525 1,557 1,576 1,590 1,794 COUNMY BANKS l92, Oct. 3 Dec. 31 0929, Mar. 27 June 29 Oct. 4 Dec. 31 1930, liar. 27 June 30 13,612 13,667 13,741 13,719 8,885 8,915 9,001 9,096 24 30 144 33 17 7 1140 13,730 9,226 13,375! 8,936 13,243 13,157 8,602 27 33 27 0 '44 163 207 171 DIVISION OF BANK OPERATIONS rEDERAL RESERVE BOARD AUGUST 11, 1930. 195 211 192 /14 11 4.6 37 39 49 2,105 2,281 2,409 2,455 378 376 354 315 117 107 114 105 1,610 1,7 9 1,9'2 2,034 294 290 289 291 1,129 1,154 1,176 1,195 5,075 4,904 4,843 4,926 4,727 4,751 14,740 4,623 1,362 1,382 1,424 1,384 3,365 3,370 3,316 3,240 45 45 2,571 2,522 2,449 2,356 375 208 258 129 125 83 93 90 2,170 2,231 2,097 2,137 279 276 279 274 1,206 1,186 1,195 1,201 4,847 4,705! )4,5)4i!i 4,5271 4,554 4,439 4,475 4,554 1,361 1,267 1,273 1,229 3,193 3,172 3,202 3,326 51\ 52 Date 1928, Oct. Dec. Mar. 1029. June 3 31 27 29 Oct. Dec. 1930, Mar. June 4 31 27 30 1928, Oct. 3 Dec. 31 1929, Mar. 27 June 29 Oct. Dec. 1930, Mar. June 0 4 31 27 30 1928, Oct. 3 Dec. 31 1929, Mar, 27 June 29 Oct. Dec. 1930, Mar. June 4 31 27 30 ALL lEIZER BANKS -- CLASSIFICATION OF DEMAND AND TIME DEPOSITS AND BORROWINGS ON. JUNE 30, 1930, COMPARED WITH PRECEDING CALL DATES (In millions of dollars) St., 6681 eman o sit Net Time Deposits Bills Payable Individ- CertiStates, Banks All Other and ual de- ficates State, All demand counties, Banks in Evidenced CertiOpen Postal Redisco unts Total posits of county Total and in foreIgn by savings ficates accounts, SavWith subject deand other deposits municipal- United counpass of Christmas ings F. R. All to check posit municiities States tries book deposit savings,etc banks other pal TOTAL - ALL MEMBER BANKS 17,501 15,727 230 1,243 301 18,995 13,410 405 134 1,882 1,169 9,703 117 1,020 134 18,904 16,997 235 1,300 372 19,944 13,453 418 124 9,810 1,895 1,071 134 1,041 122 17,708 15,840 207 1,385 276 18,833 13,329 429 113 9,728 1,832 1,110 116 981 172 17,815 15,743 201 1,512 359 18,977 13,325 477 SO 9,834 -78 1,745 115 1,029 997 169 17,937 16,167 188 1,224 358 18,952 13,318 491 111 112 9,604 1,743 1,136 120 18,862 16,936 202 1,335 389 19,797 13,233 154 595 95 1,741 934 9,592 122 232 17,079 15,195 183 1,446 255 18,489 13,519 536 103 176 9,626 1,811 i,140 128 206 14o 18,062 15,930 198 1,568 365 19,170 13,812 112 571 224 9,678 1,862 1,233 134 274 161 NEW YORK CITY* 4,548 4,299 23 71 156 5,257 1,201 11 66 560 66 478 act 263 22 5,621 5,241 22 133 226 6,085 1,268 lo 588 57 518 77 19 374 16 5,123 4,857 23 90 152 5,564 1,290 6 45 636 510 75 18 180 4,798 514 28 144 5,179 210 5,836 1,213 '18 7 639 69 401 18 330 30 5,130 4,801 24 75 1,374 230 20 5,587 47 633 93 80 483 18 6s 97 24 5,975 128 249 5,574 6,418 1,336 33 40 133 617 417 77 18 113 66 4,987 4,760 23 61 144 5,632 1,462 42 144 25 636 101 494 19 3 37 31 5,726 123 5,331 241 6,147 1,564 16 50 184 642 107 548 18 43 72 CHICAGO* 1,051 943 90 9 1,222 9 567 24 37 274 63 168 1+4 1,127 1,056 53 g 9 1,210 31 558 21 276 74 154 14. 2 62 4 27 993 3 959 1,170 432 34 21 188 74 114 1 84 1,058 3 73 975 3 7 1 1,157 444 43 '23 6' 199 47 124 2 51 2 1,086 1,039 3 6 1,217 39 464 72 22 10 184 56 118 2 45 1,083 1,033 3 42 4 3 1,187 419 19 58 156 54 7 122 2 36 1,002 969 27 5 3 3 1,199 434 50 22 19 165 54 122 1,049 2 54 2 989 3 1,233 499 90 16 22 167 62 139 *Central reserve city banks only. 269 3I 251 ALL MEMBER BANKS -- CLASSIFICATION OF DEMAND AND TIME TIRPOSITS AND BORROWINGS ON JUNE 30, 1930, COMPARED WITH PRECEDING CALL DLTES (In millions of dollars) St. 6681 Demand Deposits Time Deposits Bills Payable Individ- CertiNet States, Banks All Other and ual de- ficates State, counties, Banks in Evidenced CertiOpen Postal Redisco unts Total posits county All of demand Total and in foreign by savings ficates accounts, SayWith All subject deposit and municipal- United counpass of Christmas ings F. R. to check munici- other deposits ities States tries books deposit savings,etc banks other pal Date i RESERVE CITY BANKS 234 31 261 37 257 289 /32 9' 3,699 3,707 3,689 3,783 465 466 419 399 372 302 337 300 43 6o 42 140 452 356 419 329 39 20 22 30 258 371 314 320 35 30 32 38 3,653 3,724 3,745 3,773 388 439 478 326 299 378 378 41 41 41 42 512 242 33 54 50 36 19 6,798 6,794 6,827 6,817 123 116 132 139 COUNTRY BANKS 14 9 10 /7 5,169 5,240 5,215 5,214 1,288 1,278 1,264 1,230 151 98 150 172 52 26o 249 268 319 6,768 6,590 6,660 6,701 140 133 147 145 7 6 0 7 5,133 5,095 5,080 5,096 1,219 1,199 1,217 1,214 210 95 145 167 Oct. Dec. 1929, Mar. June 3 31 27 29 5,861 6,035 5,761 5,818 5,308 5,480 5,151 5,174 45 47 38 38 436 430 505 524 71 78 67 83 6,3911. 6,L47 6,181 6,163 4,843 4,832 4,781 4,852 Oct. Dec. 1930, Mar. June 4 31 27 30 5,794 5,970 5,549 5,697 5,287 5,423 4,984 5,115 33 41 36 44 405 423 475 470 69 83 54 68 6,151 6,291 6,035 6,141 4,712 4,963 5,048 1923, Oct. Dec. 1929, Mar. June • Oct. Dec. 1930, Mar. June 3 29 6,041 6,121 5,832 5,759 5,177 5,219 4,873 4,797 153 157 141 132 646 684 763 771 65 6o 55 59 6,123 6,202 5,918 5,822 4 31 27 30 5,927 5,833 5,541 5,591 5,041 4,906 4,482 4,496 128 133 121 121 705 742 884 921 53 52 54 54 5,997 5,902 5,623 5,651 31 27 DIVISION OF BANK OPERATIONS FEDERAL RESERVE BOARD AUGUST 11, 1930. 10 14 13 18 1 411 54 55 55 59 61 65 71 142 273 255 171 189 74 81 92 107 97 112 55 70 • ALL MEI.TER BANKS (7,247 NATIONAL BANKS AND 1,06S S TATE BANKS) - CONDI T ION ON JUNE 30, 1930, BY FEDERAL RES..ILEtVE DI S TR IC TS (In thuusands of dollars) St. 6683b Federal Reserve District Total 1 PhilaSt. Boston MinnNew York Kansas Cleveland Richmond' Atlanta Chicago Dallas delphia Louis eapolis City RESOURCES 1 Loans (including overdrafts) 25,213,770 U. S. Government securities 4,061,395 ,r securities 6,380,494 11101L LOANS AND INVESTLaTTS 35,655,659 Customers' liability on account of acceptances Banking hause, furniture, and fixtures Other real estate owned Cash in vault Reserve with F. R. banks Items with F. R. banks in process of collection 836,471 Due from banks in United States 2,360,377 Due froal banks in for:dgn countries (including own branches) 220,793 Exchanges for clearing house and other checks on local banks 2,O45,057 Agside checks and other cash items 118,552 liremption fund and due from U. S. Treasurer 32,65S Acceptances of other banks and bills of exbhmge or drafts sold with indorsement 557,(48 Securities borrowed 26,324 Other assets 223,114 TOTAL 1,829,346 2,335,504 195,507 448,274 688,365 595,255 2,713,218 3,479,033 86,359 28,899 60,582 5,366 2,241 29,386 243 11,571 3,682,206 910,055 102,26O 776,350 276,256 4,933,407 1,288,577 474,851 647,698 22,762 19,716 323,115 25,812 107,141 985,488 106,212 22,759 35,912 139,9g9 149,555 29,200 55,735 190,633 405,083 304,895 56,009 131,774 72,050 206,853 19,101 134,558 77,023 30,402 159,365 4,716 2,773 2,171,648 29,938 70,210 3,461 51,863 10,807 4,444 2,765 3,914 10,264 2,515 San Francisco 516,070 134,289 220,052 870,411 749,g75 172,654 228,737 1,151,266 652,873 127,337 89,582 869,792 78,728 1,042 392 22 2,051 177,814 g3,512 74,532 347,273 40,195 12,6'6 20,438 79,52g 26,313 5,S20 18,161 48,836 42,311 7,555 24,629 91,731 46,695 9,657 20,287 59,744 379,340 121,828 5,602 131,558 27,628 253,877 21,135 169,743 27,078 319,718 1,471 8,059 567 1,072 713 613 12,052 15,702 7,285 119,687 18,002 18,205 3,963 11,933 4,320 19,090 5,S5g 12,126 3,413 75,s50 23,3os 2,325 4,487 1,606 1,337 1,599 2,276 3,149 49 504 11,290 2,083 22,877 454,650 11,807 1,091 830 44,566 661 415 8,98 2,695 973 6,898 1,759 97,719 18,814 6,031 4,206 1,534 5,289 47,)05,740 3,241,847 13,102,613 3,335,444 4,311,742 1,543,009 1,417,334 6,310,659 1,631,815 2,231 1,133,688 1,630,5091,220,316 4,022,764 ALL MEMBER BANKS (7,247 NATIOrAL BANKS AND 1,068 STATE BANKS) - CONDITION ON JUNE 30, 1930, BY FEDERAL RESERVE DISTRICTS Amounts in thousands of dollars St. 683c Federal Reserve District Total PhilaBoston [New York MinnKansas Cleveland Ri!"chmond Atlanta ,Chicago San St.Louis Dallas delphia eaDolis -- City Francisco LIABILITIES Capital stock paid in 2,721,997 196,662 930,953 181,643 233,994 107,666 102,645 373,137 110,475 64,390 93,546 232,527 93,957 Surplus 2,870,800 161,529 1,236,701 63,461 71,374 291,966 35,924 373,969 63,440 293,367 44,469 47,860 144,720 Undivided profits - net 73,465 950,072 430,139 63,616 76,266 22,579 66,621 26,556 25,276 14,924 22,840 55,311 26,479 Reserves for dividends, contingencies, etc. 182,940 13,133 62,551 7,619 4,023 33,326 6,180 15,595 19,798 3,669 10,517 3,179 3,350 ryes for interest, taxes, and 1!her expenses accrued and unpaid 146,960 14,343 51,622 7,645 13,623 5,528 4,617 29,742 3,754 4,065 3,595 7,227 2,799 - Due to Fedefal reserve banks 46,206 7,122 14,038 4,563 4,780 2,490 3,084 7,639 200 22 1,348 900 Due to other banks in U. S. 3,831,656 173,057 1,412,753 207,290 313,662 110,549 111,851 563,192 151,740 100,702 227,057 3)46 112,993 ; sro -Due to banks in foreign countries 111 (including own branches) 571,766 494,571 3,400 21,370 3,525 869 3,746 24,237 499 1,077 313 1,279 16,878 Certified and officers! checks outstanding 1,493,437 23,381 1,239,953 17,521 13,633 8,496 56,576 33,532 15,625 15,654 9,548 45,531 11,737 Cash letters of credit and travelerst checks outstanding 1,765 27,664 252 41,389 5,401 130 '45 20 239 79 3,077 41 2,556 Demand deposits 18,061,977 1,308,812 7,137,157 1,126,401 1,444,550 505,762 515,112 2,378,331 623,628 414,449 787,944 599,106 1,220,725 Time deposits 13,811,978 564,034 998,159 3,481,780 1;132,217 1,673,804 445,648 2,157,546 525,763 241,207 1,764,635 449,190 377,995 United States deposits 260,769 23,334 24,259 24,496 21,807 24,759 93,937 17,219 7,159 2,400 4,550 14,654 22,195 TOTAL DEPOSITS 38,139,176 2,557,000 13,901,873 2,518,979 3,503,553 1,221,564 1,112,163 5,205,262 1,324,768 977,386 1413,945 982,1415 3,420,230 AgrePments to repurchase U.S.Govt. r other securities sold 37,164 2,260 15,623 2,89)4 3,616 3,25)4 1,207 4,237 1,732 224 44o 902 775 is payable and rediscounts: With Federal reserve bank 273,680 18,113 83,164 30,780 21,208 24,774 17,261 15,317 29,958 3,665 11,418 9,692 6,330 All other 161,090 11,571 82,897 1)4,181 7,496 7,240 9,556 9,620 9,530 776 1,388 3,510 3,323 Acceptances of other banks and bills sold with endorsement 29,366 454,650 557,748 3,404 11,807 1,091 44,566 830 6o1 12 2 49 11,290 Acceptances executed for customers 86,5bo 19,051 925,57b 19,664 13,582 638,779 60,362 1,044 407 7,371 26 2,348 54,176 Acceptances executed by other banks for account of reporting banks 1,626 26,619 4,561 34,996 495 132 466 320 2 770 7 National-bank notes outstanding 649,098 44,554 86,506 55,008 50,133 46,300 89,215 32,043 77,836 26,493 31,623 44,692 62,495 Securities borrowed 26,324 246 415 380 1,759 8,989 2,695 6,898 75 973 1,305 504 2,083 Other liabilities 226.915 9391 96.121 6.846 23,338 1.935 3.555 40.393 30,589 1.961 1.951 1.849 I 8.990 TOTAL 47,906,740 3,241,847 18,102,613 3,335,441 !4,311,742 1,548,009 1,417,334 6,310,659 1,631,815 1,133,688 1630,509 1,220,316 4,022,764 rumber of banks 6,315 401 923 781 466 409 552 1,135 75b 664 690 719 599 S IfEl.a.:M BANKS - CLA.SSITIMION OF LOANS, INVESTMTTS, DErA1TD AnD TEAE DEPOSITS, AND BORROWIJGS ON JUNE 30, 1930, BY FEDERAL RESERVE DISTRICTS (Amunts in thousands of dollars St. 6683 Federal Reserve District Total Phila1 T Minn- Kansas Boston Yew York San Cleveland Richmond,Atl antalI Chicago I St. . delDhia Louis leal)olis City [Dallas Francisco 1 Loans - total 25,213,770 1,835,784 0,913,656 1,829,346 2,335,504 888 456 791,08 3,682, 3 206 910,055 516,070 749,875 652,873 2,1o8,s62 Domestic acceptances 169,673 361 144,105 72 19 995 381 2,905 433 337 1,2os 4,o29 14,833 Foreign bills and acceptances 78,221 3,035 29,916 4,390 7,200 346 2,328 19,655 249 13 853 1,061 Commercial paper bought in open market 9,175 500,599 95,084 69,100 44,437 11,36s 14,802 12,191 108,764 44,095 21,328 28,518 8,204 42,308 Loans to banks: On securities 230,166 1 12,794 79,883 32,909 19,031 5,051 4,424 57,296 9,257 1,069 3,994 716 3,692 All other 305,141 13,715 120,042 16,264 11,744 19,179 28,127 24,217 24,224 7,315 23,636 10,580 6,098 olns on securities, exclusive of loans to banks - Total 10,425,353 749,375 4,s12,45o 718,914 971,925 259,351 199,554 1,461,077 298,17 • 6 130,734 149,454 13o,32o 544,023 To brokers and dealers in New York 2,36)1 ,735 94,783 1,91-59,64 15,192 69,735 13,091 19,46s 118,69 5 21,061 11,05G 11,130 13,349 18,091 To brokers and dealers elsewhere 818,834 101,985 94,031 88,648 7s,147 17,892 17,960 277,521 32,234 3,656 9,216 5,o71 86,473 To others 7,2.1 11:764 552,507 2,74,33 615,074 824,043 228,3oo 162,194 1,064,361 244,881 111,022 129,108 ilo,9oo 439,459 Real estate loans: On farm land 386,056 s,217 12,941 13,984 17,191 30,504 24,500 S0,187 26,474 25,712 21,405 17,728 107,19 3 On other real estate 2,769,262 269,914 545,192 225,611 460,145 51,072 52,718 475,45 0 99,960 20,911 21,643 22,078 524,56 3 All other loans (including overdrafts) 10,349,314 683,2.89 3,100,027 771,842 823,46'5 521,445 466,860 1,452,655 406,583 308,415 499,599 458,157 856,977 Loans eligible for rediscount with Federal reserve banks 3,904,968 229,645 1,096,224 253,586 237,517 1.91,961 196,266 570,g20 199,531 179,398 250,202 218,577 280,841 U. S. Government securities - total 4,061,395 244,471 1,405,299 195,507 448,27 4 13o,57 4 117,47 ) ;74,S 0 1 102,266 134 289 172,654 12/,337 Bonds 508,403 207,359 1,172,927 3,339,834 165,683 414,913 101,089 344,813 82,956 113,321 136,302 95,732 Treasury notes 409,811 462,924 22,17S 111,146 23,459 26,557 13,67o 114,472 11,98s 15,937 32,74o 20,425 Certificates of indabtedness 58,429 254,404 14,934 120,640 6,365 6,804 ii,s13 14,269 7,168 I. All other 3,415 10,792 38,581 4,233 586 2 1,297 154 27 197 388 1,582 Other securities - total% 6,380,494 511,583 2,066,247 6ss,365 695,255 185,45_0 776,350 276,256 220052 223.737 89,582 Domestic securities - total 492,171 5,691,E15o 445,496 1,638,312 60s,s33 611,652 166,617 699,0040 252,524 189,797 209,q37 84 066 State, county, and municipal bonds 446 6so 35,360 310,926 58,999 90,833 27,939 172,o6o 67,472 49,004 93,052 23,782 Railroad bonds 254,44 0 69,839 398,865 013 106,269 21,262 60,314 25,60627,426 13,231 Other -oulic service corporation bonds 3,647 29,365 147,21s 301,821 164,2s1 101,301 27,703 135,936 40,459 36,987 16,680 All other bonds 5,230 56,269 '13,266 134,371 397,832 173,72 9 59,213 55,190 39,282 23,754 Stock of Federal reserve banks 73,264 11,322 65,494 16,658 20,139 5,234 3,054 Stock of other. corporations 4,296 4,335 11,562 54,899 271,973 55,302 17,939 40,061 Collateral trust and other corp. n 6,414 1,553 12,481 8,015 13,584 56,86.3 31,487 16,503 4,6-83 1: , unicipal warrants 3,915 2,241 2,038 2,152 8,410 17,551 1,614 81,010 6,011 10,301 19,356 All other 7,s03 9,950 4,098 16,937 5,10g 21,320 3,185 2,367 4,268 2,063 1,663 Foreign securities - total 65,837 227,955 79,532 77,350 23,732 Government bonds 50,255 18,800 5,516 45,491 346,219 30,168 li5,626 37,402 6,076 40,923 12,28 14,563 10,563 Other foreign securities 3,230 30,933 342,425 35,719 117,309 42,13o 5,634 36,427 10,904 '5,692 s,237 2,286 14,558 410 ALL 1.1218M3. BANKS - CLASSIFICATION OF LOANS, INVESTMEN' TS, DEMAND AND TIME DEPOSITS, AND BORROWINGS ON JUNE 30, 1930, BY FEDERAL RESERVE DISTRICTS (Amounts in thousands of dollars) Federal Reserve Total Boston New York PhilaSt. Cleveland Richmoncd AtlantaChicago Idelphia I I Louis Demand deposits - total 18,061,977 1,308,812 7,137,157 1,126,401 1,444,550 505,762 515,112 2,378,331 623,628 Individual deposits subject to check 15,930,369 1,203,834 5,45 0,720 1,006,432 1,243,614 447,631 423,410 2,110,713 532,404 Amitificates of deposit 198,041 14,535 43,004 5,83)4 16,500 ' 4,890 4,532 29,735 lelEe, county, and municipal deposits 1,568,470 18,400 69,581 388,104 153,447 45,441 98,7)49 80,250 226, 479 68,4 58 All other 365,097 20,862 255,329 15,386 20,985 7,800 6,920 11,404 4,366 Net demand deposits 13,170,357 1,351,605 7,569,465 1,171,732 1,573,536 525,076 530,534 2,595,960 669,377 Time deposits - total 13,411,974 998,159 3,481,780 1,132,217 1,673,804 564,034 445,648 2,157,54 6 525,763 States, counties, and municipalities 570,679 7,735 11,744 59,29s 65,481 15,580 25,031 111,909 Bpnlf.s in United States 21,263 111,829 1,585 52,820 1,49 8 2,627 3,408 2,05 1 20,2 Banks in foreign countries 51 2,602 22)4,1114 17,829 184,636 12 21,585 Other time deposits 52 Evidenced by savings pass books 9,677,521 756,010 2,336,148 874,050 1,305,342 418,645 287,246 1,421,66 Certificates of deposit 0 284,297 1,461,504 136,322 221,843 145,178 199,147 96,422 86,511 341,434 192,764 Open accounts, Christmas savings accounts, etc. 1,232,679 71,556 606,679 96,722 94,915 26,082 28,292 186,959 FItal savings 18,729 133,652 7,121 20,316 3,025 6,292 3,897 16,505 13,744 6,056 Alt paraojt alid rediscounts - total 434,970 29,684 166,061 44,361 19,488 28,706 32,014 26,817 24,937 With Federal reserve banks: Bills payable 147,826 7,676 69,310 16,279 20,151 6,924 Rediscounts 3,815 8,180 7,450 126,054 10,437 13,854 14,501 9,807 14,284 20,959 9,081 7,867 All other: Bills payable 155,189 11,335 42,527 13,229 8,630 7,089 6,994 Rediscounts 4,308 9,146 5,901 235 370 952 900 4o9 246 1,244 474 St. 6683a District Min:1- I Kansas San Dallas lea-polls I City 'Francisco 414,449 309,943 13,508 88,670 2,328 787,9M 599,106 1,220,725 632,283 504,674 1,054,707 25,567 10,956 10,580 126,303 81,272 131,716 3,791 2,204 13,722 426,699 425,010 609,685 1,321,674 );)19,190 377,9q5 241,207 1,764,635 6,43 7,500 263,243 145,372 22,728 58 24,529 956 198,957 16,473 182,199 167,458 116,654 36,053 1,381,223 103,754 7,495 19,157 37,478 14,474 7,109 5,102 )0,-)3 13,555 4,641 12,806 13,202 11,653 481 3,384 2,0199,399 2,317 7,375 3,224 5,106 724 52 1,149 239 3,226 2814 2,431 492
@FedFRASER