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The Papers of Charles Hamlin (mss24661)
363 09 001-
Hamlin, Charles S., Scrap Book — Volume 207, FRBoard Members
205.001 - Hamlin Charles S
Scrap Book - Volume 207
'FRBoard Members
al
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To
The Files
From
Mr. Coe
Date
August 10 1941
Subject:
WAP
After correspondence with Yrs. 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 207 of Mr. Hamlin's scrap book and placed in the Board's
files:
VOLUME 207
Page 32
Statement by Open Market Policy Conference.
Page 37
Report of Progress to the Governors' Conference From the Federal
Reserve System's Committee on Bank Reserves.
Page 39
Report of Progress by the Committees on Branch, Group and Chain
Banking to the Governors' Conference on September 24, 1930.
PaRe 54
Excerpt from minutes of Governors' Conference.
Page 71
Memo to Mr. Hamlin from. Mr. McClelland re provisions of S-4723.
Pare 94
Earnings & Expenses of F.R. Banks, September 1930.
Page 103
Memo to Mr. Hamlin from Mr. Smead re Comparison of F.R.Bk. of
Boston with Atlanta and San Francisco.
Page 150
Foreign Accounts of F.R. Banks. (Marked Confidential)
Page 151
Memo to Mr. Goldenweiser from Mr. Hamlin re increase of discount
rates.
Page 152
Blank
Page 153
Memo to Mr. Hamlin from Mr. Goldenweiser re effect of increase of
discount rates.
Page 154
Blank
Page 155
Memo to Board from Mr. Smead re loans and investments of Member
Banks on September 24, 1930.
ttivikeop,au
The Open Market Policy Conferenee has considered the preliminary
memorandum submitted to it by the Chairman and has reviewed at length
general business and credit conditions.
In view of the continued severe depression in business activity,
trade and commodity prices in this country, as well as the rest of the
world, it is the sense of the Conference that it would be inadvisable
for the Federal Reserve System to permit any further easing or any firming
of present eoney rates because of seasonal requirements, gold exports, or
other causes; and that it should be the policy of the System, so far as
possible, to maintain the present easy money rate position in the principal
money centers, and that the Executive Committee should be authorized, if
necessary, to supplement bill purchases by the purchase of Government securities, in the event that the seasonal demand for Federal Reserve credit,
gold exports, or other factors should tend unnecessarily to tighten present
eoney rates.
In the event that any conditions should develop which would require
sales of securities to execute this policy, the Executive Committee shoqld,
of course, have authority to make s]
.es of securities. It is understood,
however, that if the Committee should have to buy or sell more than
n00,000,000 of Government securities to Maintain the status quo, new
authority must be procured in accordance with the prescribed proeedure. \
It is recommended that ti-ere should be another meeting of the OPeu
Market _olicy Conference early in January, unless a change in conditions
suggests to the Board or the members of the Conference the advisability
of
an earlier meeting.
VOLUME 207
PAGE 32
0)iv
•
S.,,et /141
liktember 24, 1930
=CRT OF PROGRESS TO THE GOVERNORS' CONFMEtTCE
FROM TIE FEDERAL RESERVE SYSTMVS COMMITT= ON BANK RESERVES
The Committee on Bank Reserves, consisting of Mr. I. B. Clerk of the
Federal Reserve Bank of San Francisco, Mr. M. J. Fleming of the Federal Reserve Bank of Cleveland, Mr. L, R. Rounds of the Federal Reserve Bank of
New York, and Messrs. E. A. Goldenweiser and E. L. Smead of the Federal Reserve Board, was appointed by Governor Calkins, Chairman of the Governors'
Conference, in accordance with the following resolution adopted by the Conference at its meeting at Washington, December 11 and 12, 1929:
"That it is the sense of the conference that the subject of bank reserves is one of the utmost importance, requiring the most careful scientific study by experts devoting their entire time to the matter with
a view
of drafting a report to the Federal Reserve Board, proposing such amendme
nts
to the law or regulations as in their judgment may be necessary to
remove
any present inequalities or defects and to establish bank reserve through
s
out the country on a more logical or effective basis than
now appears to be
possible under present laws State and Federal."
The first meeting of the Committee with all members present was held
in Washington, from February 26 to March 4, 1950. Mr. Smead was elected
Chairman; Mr. Rounds, Mr. Goldenweiser, and
Smead were designated to
act as an Executive Committee in the absence of the full committee,
and
Mr. W. W. Riefler of the Federal Reserve Board was appointed Executive
Secretary.
After a thorough discussion of the problem as set forth in the resolution adopted by the Governors' Conference, the Committee decided
to follow five general lines of inquiry, as follows:
(1) An examination of the logic underlying the imposition of reserve requirements.
(2) A complete summary of all existing memoranda and reports on
reserve requirements including reports of previous system committ
ees.
(3) A survey of the present distribution of reserves in this country between different classes of member banks as well as between member
and nonmember banks, and a study of the growth of deposits under
present
reserve requirements, both at member and nonmember banks.
(4) A study of the trend of deposit growth for the purpose
of estimating the future volume of different classes of deposits to
which reserve requirements recommended by the Committee may be
expected to apply.
(5) A survey of the world gold situation present and future
in
order to assure so far as possible that the recommendations of
the Committee will not interfere with the orderly functioning of the
gold
standard.
At the present time, the summary of existing memoranda and
committee
reports on reserves is completed and the compilation of the
statistical
material for the use of the Committee is well under way.
The following
VOLUME 207
PAGE 37
-2-
summary takes up the various phases of the research program as outlined at
the meeting of the Committee last March, and indicates the stage at which
the work under each topic now stands.
1. Gold studv—The Committee has secured an advance copy of the
League of Nations study on gold, and is also carrying forward an independent survey of its own.
2. Study of fluctuations in deposits 1922-1930—Statistical data
covering fluctuations in deposits from 1922 to 1930 have been compiled and
are now ready for analysis. This study will analyze changes in demand deposits and bankers' balances by classes of banks and by Federal reserve
districts, to ascertain to what extent bankers' balances have fluctuated
over a wider range than demand deposits.
3.
Study of vault cash--All available figures on vault cash of member and nonmember banks by call reports have been compiled for the period
1921-1530, and a similar compilation of figures on vault cash for June dates
back to 1890 is under way. In the process of compiling these figures, it
became apparent that the volume of vault cash held by banks varied widely on
different days of the week. In order to compare back figures, a special call
was sent to all member banks, asking them to report their vault cash holdings
on each day of June 1930. These reports have greatly clarified our knowledge
of daily fluctuations in the public demand for currency and the volume of
vault cash held by member banks. In addition, these figures, in conjunction
with figures showing daily average net demand and time deposits held by member banks during June, will make it possible for the first time to state
definitely the proportion of deposits which are held in the form of vault
cash by member banks in different localities.
4. Study of domestic credit trends--Total deposits and also individual deposits of all banks in the United States by classes of banks have
been compiled for the period 1892 to 1929. At the present time similar
figures of demand deposits and time deposits by classes of banks are being
compiled with estimates for those years in which figures giving an exact
distribution are lacking.
5. Member bank reserve requirement statistics, spring call 19171930—The Committee is makin;c, a complete summary of member bank statistics
relating to reserves from 1917 to 1929. These figures are designed to
facilitate a comparison of the effect on different classes of member banks
of different formulas for computing reserve requirements.
6. Study on deposit turnover--A study on deposit turnover is nearly
completed. For this study, 31 leading cities were selected on which figures could be compiled going back to 1892. Total bank clearings and total
deposits of banks in these cities have now been compiled; also total debits
since 1919. Some progress has also been made on an estimate of total debits to individual account for the entire country, and on a comparison of
the growth of debits with the growth of bank credit.
7. Reserve requirements of nonmember banks--The Counsel's office
published in the September Federal Reserve Bulletin a compilation showing
present legal reserve requirements of nonmember banks in the 48 states.
-3From this and previaus compilations of the Counselis office, the
Committee
is preparing a tabular staterrent of reserve requirementsp in
each State in
1914 and in 1930, together with changes which have takeri: ace during
the
interim. It is also planned t: compile for each State se arately, figures
showing the growth of deposits at national, State member, and Stat,e
nonmember banks. It is felt that this compilation showing changes,. ija
State banic:-.
ing laws and in the relative growth of different types of bariking
institu
tions in each State will be of groat value in comparing the. position
of.
banks operating under Federal laws and State laws in differez?t spction
s'e
the country.
1-1:!
Respectfully submitted,
W. W. Riefler
Executive Secretary
Tashington, D. C.,
Se-otember 24, 1930
REPOI1T OF PROGRESS 1Y :HE COMMITTEE ON BRANCH,
GROP AND CHAIN BANKING TO THE GOVERNORS' CONFERXITCE
SEPTEKTER 24, 1930
0
In accordance with the recommendations of the Federal Advisory Council
and the all Conferences of Governors and Federal Reserve Agents in 1929, the
Federal Reserve Board at its meeting on February 26, 1930, appointed
Messrs.
Goldenweiser and Smead, of the Board's staff, and Messrs. Rounds, Fleming
and
Clerk representing the Federal reserve banks "as a committee to assemble
and
digest information on branch banking as practised in the United States, group
and chain banking systems as developed in the United States and elsewhere, the
unit banking system of the country, and the effect of ownership of ba;kk stocks
by investment trusts and holding companies." At a later date the committ
ee
was made a System rather than a Board committee.
This committee hold its first meeting in Washington, D. C., on March
4-6
with Dr. Goldenweiser as chairman,for the purpose of discussing the
functions
of the Committee, the scope of its work and the method of procedure.
It was
the view of the members that the purpose of the Committee was primarily
fact
finding, and that its objective should be to assemble such information
as
would make possible a comparison and evaluation of the different types
of
banking from the point of view of the public interest. It was aueed
that the
program should include a thorough study of the development and present
status
of branch, chain and group banking as well as the unit system; t.ze
relative
merits of the various systems including the element of safety, availab
ility of
credit and value of general services !?erformed; the causes or motivat
ing
forces back of the general tendency in the field of banking towards
concentration of ownership and control and the diversification of functio
ns; and an
estimate of What is likely to be the normal development in the
future and how
far this tendency or development might be advantageously
directed. A review
of the history and present status of branch banking in certain
foreigni
countries, especiall- Canada, was also suzgested as a supplem
ent to the study
of conditions in this country.
The Committee was aware that this was a major undertaking
which involved much time, labor and expense and to be successful
would need the
whole-hearted cooperetion of all the Federal reserve banksil
s well as the
state and national supervisory authorities, but in view of
the economic
importance of the changes Which are going on in our entire banking
structure
including the distress caused by the extraordinary number of
failures during
the past ten years, the Committee felt that its investi
gation should be
comprehensive and thorough.
VOLUME 207
PAGE 39
2
Messrs. Goldenweiser, Stcroad and Rounds were constituted an Execut
ive
Committee with authority to act for the Committee as a 7hole in the
absence
of the other members, and Yx. J. H. Riddle was appointed Secretary of
the
Committee.
The Executive Committee mot in Washington on May 23, 1930, in order
to determine more definitely the various lines of investigation and
the
scope of each. The irlVestigation as outlined includes various statistical
studies, case studies on special topics, and in some instances special field
investigations. The statistical studies include:
Suspensions
Earnings
Branch banking
Chain and group banking
Mergers and consolidations
Branch banking in some of the principal foreign countries
The case studies include:
Branch banking
Group banking
Branch and chain systems which have failed
After the v9rious data in the statistical and case studie
s are
assembled and analyzed it may be necessary for the Committee
to sup4ement
this material by sending a representative, or representatives,
into particular
districts or communities to ma:ke direct surveys of the condit
ions which prevail. These surveys should cover especially the branch bankin
g systams in
California and the Canadian banking system.
The Committee is making use of the vast fund of statistical
and other
material which has already been collected by the Board and
other agencies.
It has pruved necessary, howevor, to sup7lement the available
material by
collecting additional data and the Committee has prepared variou
s schedules
for this purpose. Schedules have been forwarded to the
Federal reserve banks
for collecting material on the folloTing subjec
ts:
Branch and chain systems which have failed
Branch banks in operation for specific years prior to
1920
Effect on banking accounts of changes in industrial
organization
Branch banking systems in operation
Group banking systes in operation
Suspensions since January 1, 1921
Earning.
This information is now being compiled by the Reserve
banks end state
Commissioners 9nd parts of it have already been receiv
ed by the Committee.
The
•
3
Federal reserve banks themselves are preparins the .alaterial on earnings and
on branch and chain systems which have felled. The schedules on suspensions
were sent to the various state banking departments and to the office of the
Comptroller of the Currency, while the questionnaires on branch and group
banking were sent to the institutions fro;:i Whom the data are desired.
The Committee is much gratified with the cooperation and assistance
which it has received and continues to receive from the various Federal reserve banks, the state banking departments, the Comptroller of the Currency
and from the various institutions from whom information has been requested.
J. H. Riddle,
Secretar:r.
_4
44W444
fiZo
It was voted to be the sense of the Conference that the
Chairman should appoint a committee of five Governors to
study and report in the light of the experience of the past
two or three years whether and in what way, if at all, it
would be possible or practicable through any chanr,e in Federal
reserve practices or proce(lure to promote a more effective
control over undue or harmful fluctuations in the country's
credit structure.
Committee, Governor Harrison, Chairman,
Norris,
Young,
McDougal,
Calkins.
•
VOLUME 207
PAGE 54
•
Office Correspondence
Foni No. ra.
To
From
Lir.
Hamlin
FEDERAL RESERVE
BOARD
•
Date September 30, 1930.
Subject
ire Illealellast
p
2-8495
In accordance with the instructions of the Board at the neetint today,
there is called to your attention herewith, the action of the Federal
Reserve Agents' Conference on a memorandum from the Board's Assistant
Counsel, dated June 23, 1J30, contang a summary of the provisions of
8-4723, a bill introduced by Senator Glass to amend in a number of respects,
the provisions of the icational Bank Act and the Federal Reserve Act:
"The memorandum dated June 23, 1930, X-6649a, of the
Federal Aoserve Board's Assistant Counsel,
Wingfield,
suranarizing the most important changes which the bill would
make, was read and considered paragraph by paragraph. The
conference voted as favoring the provisions of paragraphs
numbered (7) and (9), and as disapproving the provisions of
withheld expression on paragraph (4), pending report of the
System's committee on branch, chain and group banking."
A copy of the memorandum referred to is also attached for your
information.
VOLUME 207
PAGE 71
•
•
ir COPY
X-6649-a
FEDERAL RESERVE
BOARD
OFFICE CORRESPONDENCE
To
Federal Reserve Board
From
Mr. Wingfield-Assistant Counsel.
Date
June 23, 1930
Subject: Summary of Provisions
of the Bill S-4723, introduced
by Senator Glass.
On June 17, 1930, Senator Carter Glass introduced a bill, S.4723,
to amend the provisions of the National Bank Act and the Federal Reserve
Act in a number of respects. When he introduced this bill Senator Glass
stated on the floor of ti-B Senate that it is merely a tentative measure
to which he hopes to direct the inquiry into the banking system authorized
by the Senate. For the information of the Board, however, I will briefly
summarize below the most important changes which Senator Glass' bill would
make in the present law.
(1) The first paragraph of the bill, S. 4723, states that the title
of the bill is the "Banking Act of 1930."
(2) Section 2 of the bill, S. 4723, would amend the 7th paragraph
of Section 5136 of the Revised Statutes which has to do with the powers
which a national bank may exercise. In addition to the specific powers of
national banks now contained in the law, this bill provides that national
banks may generally engage in all forms of business that commercial banks
of the State in which the national bank is situated are permitted to transact by the laws of the State, except in so far as national banks are
expressly forbidden to undertake such business by the National Bank Act,
the Federal Reserve Act, or other laws of the United States.
Under the present provisions of Section 5136 of the Revised Statutes,
national banks are authorized to buy and soil investment securities.
Section 2 of the bill, S. 4723, would also amend Section 5136 so as to
limit this power of national banks to only the buying and selling of investment securities solely upon order and for account of customers, and
in no case for its own account, except as specified in Section 24 of the
Federal Reserve Act.
(3) Section 5144 of the Revised Statutes now provides that each
Shareholder of a national bank shall be entitled to one vote on each Share
of stock held by him. Section 3 of the bill S. 4723 would amend Section
5111 so as to restrict the right of a shareholder to vote only shares of
stock actually owned by him as a result of bona fide purchase, gift or
inheritance, and the Shareholder who becomes such through nominal transfer,
or ownership on behalf of another, may not vote stock so acquired. This
section of the bill would further amend Section 5144 so as to provide that
no corporation, association or partnership and no officer, employee or
director of any corporation, association or partnership which is the owner
of stock in any national bank shall vote either the stock owned by him
individually or the stock owned by the corporation. The present provision
of Section 5144 authorizing Shareholders to vote by proxy is retained in
the bill S. 4723.
X-6649-a
-2(4) Section 4 of the bill S. 4723, would amend paragraph (c) of
Section 5155 of the Revised Statutes so as to authorize a national bank,
after the date of the approval of this bill, to establish and operate new
branches within the limits oi the State in whidh the national bank is
situated rather than merely in the city, town cr village in which sudh
national bank is located. The proposed amendment retains the present
provon of the law that new brancnes may only be established and operated
if such establishment and operation are permitted to State banks by the law
of the State in which the national bank is located.
(5) Under the provisions of Section 5197 as it now reads, a national
bank is authorized to charge interest at the rate allowed by the laws
of the State, territory or district where the bank is located and when no
rate is so fixed by State law a national bank may charge a rate not exeI
ceeding 7 per centum. Section 5 of
S. 4723 would amend these provisions so as to authorize a national bank to charge the rate allowed by
State law or a rate one per cent= in excess of the discount rate of the
Federal reserve bank in the Federal reserve district where the national bank
is located, whichever may be greater, and where no rate is fixed by State
law a national bank would be authorized to charge a rate not exceeding 7
S_ r centum or one per centum in excess of the discount rate of the Federal
reserve bank in the Federal reserve district where the national bank is located, whichever may be greater.
(5) Section
•I.f the Revised Statut9 limits loans by a national
bank to any one person to 10 per cant of the capital and surplus of tne
national S.
This section, however, contains a number of exceptions to
the 10 per cent limitation. Section 6 of the bill .A
would amend
Section 5200 by adding a provision that 555bligation of a broker or of any
finance company, secures company, investment trust or other similar
institution, or of any affiliate, shall be entitled to the benefits of
any of the exceptions contained in Section 5200, but all such obligations
shall be subject to the 10 per cent limitation. This section would further amend Section 5200 so as to provide that the total obligations of an
affiliate shall not exceed the 10 per cent limitation or the amount of the
capital stodk of the affiliate actually paid in and unimpaired, whichever
I_y be the smaller. It is further provided that an affiliate shall include
a finance company, securities company, investment trust, or any other corporation the control of which is held directly or indirectly through stodk
ownership, or in any other manner by a national bank or by the shareholders
thereof woI'n or control a majority of the stock of the national bank.
(7) Section 7 of the bill S. 4723 would amend Section 5211 of the
Revised Statutes by addin a new aragrah which would require
heae chGurrency
a
not less than three reports each year, setting out in detail the condition of the affiliate. The president of the national bank is required to
satisfy himself as to the correctness of each such report transmitted to
the Comptroller. This amendment contains detailed requirements with reference to the filing of such reports and the form of such reports and authorizes the Comptroller of the Currency to call for special reports whenever
iI his judgment it is necessary. An affiliate which fails to furnish the
•
4411,'
X-6649-a
-3reports required of it shall be subject to a penalty of $100 for each day
during which such failure contLzaes.
(8) Section 8 of the bill S. 4723 would amend the first paragraph
of Section 7 of the Federal Reserve Act so as to provide that after the
payment of a 6 per cent dividend to member banks, one-fourth of the
remainder of the net earnings of a Federal reserve bank shall be paid to
the United States as a franchise tax, one-fourth to the surplus fund of
the Federal reserve bank (but after the surplus equals 100 per cent of the
subscribed capital the remainder goes to the Unite6 States as a franchise
tax) and the remaining 50 per cent of the net earnings of a:Federal reserve
bank shall be paid to the member bank stockholders.
(9) Section 9 of the bill S. 4723 would amend Section 9 of the
Federal Reserve Act by adding a new paragraph which would require each
affiliate of a member State bank to furnish to the Federal Reserve Board
not less than three reports each year, containing detailed information
with reference to the condition of the affiliate. This amendment contains
detailed requirements vdth reference to the filing of such reports and the
form thereof and requires the president of the member bank to satisfy himself as to the correctness of each such report transmitted to the Federal
Reserve Board. Any affiliate which fails to make any report required shall
be subject to a penalty of $100 for each day during which such failure
This section of the bill contains substantially the same
continues.
definition of an affiliate as was contained in Section 6 of the bill as
above noted.
(10) Section 10(a) of the bill S. 4723 would amend the first
paragraph of Section 10 of the Federal Reserve Act so as to eliminate the
Secretary of the Treasury from nemberslip on the Federal Reserve Board and
to provide for a membership of only seven members including six members appoiated by the President of the United States and the Comptroller of the
Currency as an ex officio member. Section 10(b) of this bill would amend
the second paragraph of Section 10 of the Federal Reserve Act so as to
eliminate the Secretary of the Treasury from tne provision which now renders
the Secretary or Comptroller of the Currency ineligible during the time
he is in office and for two years thereafter to hold any office, position
or empl,Jyment in any member bank. Section 10(c) would amend the fourth
paragraph of Section 10 of the Federal Reserve Act to eliminate the
Secretary of the Treasury as an ex officio chairman of the Federal Reserve Board and to provide that the oaths of office of members of the
Federal Reserve Board shall be filed with the Secretary of the Federal
Reserve Board rather than be certified to the Secretary of the Treasury
an is now required.
(11) Section 11 of the bill S. 4723 would amend the seventh paragraph
of Section 13 of the Federal Reserve Act so as to provide that during the
life or continuance of advances to a member bank on the 15-day promissory
collateral notes of the member bank such member bank shall not increase or
enlarge the total loans already made by it either upon collateral security
to any borrower or to the me:ibers of any organized stock exchange, investment
•
X—6649ra
.I
-4—
house, ,r de...iler in securities, upon any obligation, note, or bill secured
or unsecured, except for the purpose c,f T)urchasin,7 an carrying obligations
of the United. States.
(12) Section 12, which is th.• last section of the bill S. .',723,
would amend Section 24 of the Federal :::;:.:-. serve Act ',„c as to require a
amount of
national bank to invest its time and savings deposl.ts in
real estate loans authorized under the provisions of Section 2z.: of the
Fedoral Reserve Act or in property and c-securitico of the kinds a:4 amounts
required. by law of savings banks in the State when: the national bank- is
situated. In case no ruch State s-a,..vingl
la77 oxists
prororty and securi—
time depo;:,its of a national "bank shall be invested
ro:-,erv-o of 40 of
Currency.
the
ties specified by thL Covrtroller of
aa a correo—
count
shall
tirae d.(To!iits required by t,1-,e Federal Reserve Act
further
"All
DondiLs part
suc.r. investr.int:.-,. This section of the
vide.; that in case a ilational bank becomes insolvent, all t1-...e property
acquired under this section shall be applied by the receiver thoreof in
ti-so first place ratably and proportionately to the payment in full of
the time and savings deposits of the national bank.
A copy of the bill S. 4723 i
information.
attn.:n-10:i hereto for the 'Board's
Re„Tactfully,
(S) B. N. Wingfi:id
Assistant Count;e1.
Cop:r of bill a1-.tanh(1.
BMW-'sad
46,41,
Set,64t
st. 6755
CONFIDENTIAL
_Tot for p-ablic-1,tion
EARITINGS AND EXPiZ.SE OF YEDERAL RESERVE BJUKS, SEPTEMBER 1930.
Month
En,rnins from
Federal
ADO
Current net
Durrent
earninis
net
Ratio to
earnings
A.--.1ount
Lcay..
per cenit7
q
Exclusive
co-anted.
bills
Purchased
bills
$30,166
61,225
48,132
42,634
$34,620
.84,612
173
32,502
$0a,176
372,042
119,769
133,296
$7,301
23,462
3,499
13,401
Richmond
Atlanta
ChicaLo
St. Louis
59,791
85,618
41,905
50,g88
16,364
19,358
29,949
15,593
36,29
29,639
200,581
63,678
3,g78
23,435
30,607
1,643
sas City
iiii
13,797
28,253
12,714
18,677
44,126
.as
23,633
San. Prancisco
TOTAL
Se-otember 1930 530,193
1930 :S29,548
August
September1929 4,200,206
13,611
64,869
62,786
587
92,340
310,956 1,348,594
251,142 1,464,187
Reserve
4 k,
.
Other
sources
Total
January
1930
Se-otember
Current exiDenses
of
I
of cost of I Total
IF.R.Currencyl
$166,092
584,678
165,829
217,5621
116,562
156,050
303,242
132,007
115,369
101,451
2(2,409
104,516
123,010
107,16-1
270,252
108,086
50,gS9
32,990
23,921
11.6
2.0
894
23,766
IS
4,008
92,274
133,482
131,432
152,764
78,853
143,777
102,733
3.66,11.8
10,3148
81,926
037
146 560 ,
25,37S
106,0541
195,855 (a)43,091
4.1
138,102
128,452
2,327,845
2,161,94_9
2,473,329
,_553,71.5 166,719 5,904,609
963,_969
1,665,232 28,530,910
13,197,867
Jan.-sept.1930 :5g9,4395,078,352
1,842,407 51,743,638
5,222,208
1929 36,629,628,049,395
2,128,181
2,186,350
19,690,26o
19,916,631
54,771
2,273,074
131,715
2,3)41,614
2,345,135_1 3,559,473
21,396,845 7,3.32,065
22,00,063 29,273,575
.4
.9
26.0
5.6
24.9
32,77g
YEDK/AL RES MVE BOARD
DIVISION OF B.A.T:TX OPER._ VTIONS
OCTOBM 9 , 1;30.
71,
.) De,fici t.
2
September 1930
Available for
Dividends reserves,
accrued sur-plus :and.
franchise
tax*
$273,7S3 $527,7gg
3,166,642 3,020,209
864,661 750,8
772,355 714,549
$1.73,285 - $156,263
540,486
541 ,341
153,374
171,573
206,550
221,833
Boston
.- Jew York
Philadel)hia
Cleveland
-
le7
43,337
)
5,744
,271
(n.)$253,454
1,066,073
3.17,667
325
(a) 209,050
28'7,166
(a) 134,974
105 , 230
55,360
(a) 298,095
22,456
(a) 712,568
c 1
)
7.1
46,336
7,132,065 7,712,190
21 ,453,649
129,273,575 7,063,087
*After .a,djustnient for current
profit and loss E...ntries, purchases of furniture and equipment,
VOLTJME 207
PAGE 94
Form No. 131
Office Correspondence
To
Mr, Hamlin
From _
Mr. Smead
FEDERAL RESERVE
BOARD
Subject:
Date_
September
3, 1930
Comparison of Federal Reserve
Bank of Boston with Atlanta and Saa.
Fmnciqm,
I have a memorandum from Mrs. Nagle, requesting that you be
furnished
with data comparing the office of Chairman and Federal reserve
agent at Boston
with similar offices at Atlanta and San Francisco.
(a) Relative imoortance of work,
With regard to the relative importance of work, there is given
below a
statement showing the volume of work handled during 1929 by the
three banks
in their principal ooerating departments. The figures for Atlanta and
San
Francisco include the work handled at the branches as well as at the head
offices.
Boston
Atlanta
San Franctsco
(Yumber of pieces handled)
Bills discounted:
Applications
Notes discounted
Bills purchased in open market for
own account
Currency received and counted
Coin received and counted
Checks handled
Collection items handled:
U. S. Government coupons paid
All other
U. S. Securities IZSUPS, redemptions
and exchanges
Transfer of funds
12,255
10,665
72,614
74,791
21,141
27,402
254,503,000
323,286,000
93,123,000
6,931
133,935,000
62,927,000
32,305,000
18,05
125,681,000
124,060,000
•76,800,000
1,473,000
452,000
409,000
1,251,000
164,000
321,000
101,000
63,000
53,000
98,000
94,000
158,000
7,535
This statement, you will note, shows on the whole that Boston
handles a
considerably larger volume of work in its principal departments than
is handled at either Atlanta or San Francisco. While these figures show
the general size of the banks in auestion they pertain principally to the
operating
departments of the bank. With regard to the operations under the direct
supervision of the agents it may be pointed out that both Boston
and San Francisco maintain quite large statistical departments while at Atlanta
there is
only a small statistical unit. In the Atlanta district, however
, the large
number of bank failures and the general credit situation
presumably reauires
considerable attention on the part of the agent.
The following figures Show the area and population of each of the
three
districts, naid-in canital of the Federal reserve banks, member bank
reserve
balances, and the number and deposits of member and nonmember
banks.
VOLUME 207
PAGE 103
II
- 2-
Federal
Reserve
Bank
Paid-in cap- Area of FedMembers'
reserve with ital of Ted- eral Reserve
Population,
eral Reserve
district i June 30,
Federal rebanks
(Scuare miles
1928
serve banks
(Daily average figures for 1929)
Boston
Atlanta
San Francisco
Federal
Reserve
Bank
$147,217,000
63,836,000
174,242,000
$10,569,000
5,361,000
11,168,00
Number of reporting banks
December 31 1929
Total I Member Nonmember
o1,345
248,226
683,852
7,886,000
11,158,000
3,504,000
Deposits (except inter-bank)
December 71, 192
Total
Member 1Nonmember
(In thousands of dollars)
Boston
Atlanta
San Francisco
1,032
1,598
1,317
404
428
607
628
1,170
710
6,298,100
1,547,574
4,529,229
2,391,216
1,020,420
3,246,895
3,906,834
527,154
1,282,334
(b) Cost of livinq in the community.
It is difficult to get a definite line on the relative cost of living in different cities, though several attempts to do so have been made
by statistical organizations. While the cost of the orincipal articles
of food, etc., are available, the fact that certain items entering into
the cost of living are more important in some communities than in others
and consequently have different weights in the family budget, makes it
practically impossible to get comparable figures between cities.
(c) Level of general salaries paid in the F deral reserve bank.
In 1929 when the salary classification plans were submitted to the
Board by the Federal reserve banks, the Boston bank was paving employees
an average salary of $1,449, Atlanta $1,510 and San Francisco 5t1,803.
The Federal Reserve Bank of Boston has fewer officers than any
other Federal reserve bank, although it ranks third in number of employees at head offices.
. The salaries paid each officer at Boston, Atlanta and San Francisco
are as follows:
Governor
Deputy Governor
Cashier
Secretary
Assistant Cashier
Boston
Atlanta
*$30,000
20,000
$25,000
15,C00
12,00
9,000
$30,000
18,000
16,000
11,000
7,5oo
7,200
6,300
b,300
5,200
5,000
5,000
14,000
9,000
7,500
7,250
7,000
5,000
4,9oo
4,5oo
4,5oo
4,5oo
Chairman and F. R. Agent
ASS t. F. R. Agent
Asst. F. R. Agent and secy.
Asst. F. R. Agent and Chief
examiner
General Auditor
Auditor
Asst. Auditor
20,00
7,500
4,000
20,000
9,000
9,000
0,900
Total officers (exclusive of
(9) 128,750
Counsel)
San Francisco
24,000
#5,000
14,000
7,200
5,000
4,500
(15) 138,500
(15) 165,200
*Salary raid to Governor Harding.
#Acting.
As you know all Federal reserve agents except those at Yew Yofk, Chicago
and San Francisco receive $20,000 per year.
(d) Relative sal:ries paid officers of competing member banks,
Below are shown the salaries ner annum paia to the principnl officers of
the largest rational banks in Boston, Atlanta and San Francisco. These figures
are taken from the latest examination reports covering these banks on file in
the Comptroller's office and are confidential.
First National Bahk, Boston,Mass,
Chairman
$50,000
Vice-chairman
100,000
President'
100,000
Vice-nresident
4o,000
3 vice-presidents
30,000 each
2 vice-rresidents
25,000 each
Atlantic rational Bank, Boston, Mass.
Chairman
S35,000
Vice-chairman
30,000
President
35,000
Vice-nresident
';0,000
11
21,000
20,000
18,000
SI
0
15,000
rational Sharmut Bahk, Boston, Vass.
President
$70,000
Vice-nresident
4o,000
3 vice-presidents
30,000 each
Vice-president
25,000
20,000
3 vice-presidents
18,000 each
S
•
First National Bank, Atlanta, Georeia.
Chairman (inactive)
t10,000
President
40,000
Vice-president
20,000
11
18,000
44
16,000
15,000
13,000
10,000
Ax1plo and London Paris National Bank,
San Francisco, California
Crocker First Nrtional Brnk.
San Francisco, California
President
Vice-president
President
Vice-president
0
2 vice-presidents
2 "
t50,000
18,000
21,000
15,000
11.1,400 eacb
12,000 each
0
4 vice-nresidents
$4,000
22,000
20,000
13,000
12,000 each
Bank of Italy National Trust and Savings Association
Chairman
$15,000
Vice-chairman
20,000
18,000
40
U
15,000
President
40,000
Governor
er
Ati
•
0 ONFIDENTIALO
St1 5561a
(Rev. Feb. 1929)
FOREIGN ACCOUNTS OF FEDERAL RESERVE BANKS
(In thousands of d.ollars)
T
GOLD AND INIa'SL.= TS
Bills
HELD FOR FOREI0 C ORRESPCN DEN TS
bought
EarInvestments
througli
Total marked
U.S. se- ±oreii
Total
Bij•ls curiti es brmks
gold
DAILY AVERAGE HOLDINGS
1929
January
616,14
3 ,316 430,829 331,229 1)49 ,GOO 1,018
February
602,784 1 ' ,898 )457 ,806 311,953 145,928 1,021
March
573,1425 143,319 430,106 323,93)4 io5,17
1,033
April
550,971 106,829 444,142 351,179 92,963 1,036
Month
rin.d
date
D1POSI'I" ACCOUNTS
Due
Due
from
to
foreigi orei gn
banks banks
6,426
5,897
9,137
11,913
730
730
723
723
1,039
1,041
1 ,584
4,613
7,891
6,598
7,125
5,484
725
729
723
723
Mr3iy
June
July
Augus t
531,685 73,816 457,869 370,1456 87,413
562,535 73,729 488,806 413,656 75,150
615,208 92,903 522,300 446,450 75,850
631,370 103,017 526,353 453,022 75,331
September
October
November
December
634,734
664,828
6314 455
697,535
104,855
113,893
117,S94
125,326
529,279
550,935
566,251
572,309
455,756
)475,253
510,352
530,266
74,123 16,609
75,682 17,012
55,909 12,2)45
42,043 1,029
6,542
6,24o
5,562
5,576
741
76)4
740
722
1930
January
February
March
April
703,316
690,492
663,347
530,566
133,537
132,901
122,50'4
119,9)45
569,781
557,591
540,8)43
510,621
53)4,190
522,000
504,7o0
468,955
35,591
35,591
36,143
41,656
1,032
1,037
1,039
1 ,052
5,01)4
6,153
6,661
5,883
723
721
722
712
May
June
July
Augast
630,778
633,3)45
656,170
652,389
118,295
116,052
117,618
118,618
512,483
517,263
538,552
533,771
)467,017
466,384
481,457
480,476
45,456
50,899
57,095
53,295
1,055
1,059
1,065
1,069
5,50)4
,047
0,097
6,017
711
709
705
703
)48,379 1,071
48,603 1,072
67,534 1,0714
67,525 1,075
72,709 1,075
72,739 1,075
72,77
.6 3,028
72,708 10,353
6,498
S ,528
5,774
5,253
704
704
Holdings on
Sept. 3
627,837 118,295 509,592 451,213
10
625,823 118,295 503,528 )459,925
17
621,353 118,295 503,058 435,5014
24
620,561 118,295 502,265 434,641
Oct. 1
622,1411 114,303 508,103 435,399
8
626,377 114,303 512,07)4 439,335
15
s31,833 118,410 513,423 440,647
22
630,048 118,410 511,638 438,870
DIVISION OF BANK OPERATIONS
FEDERAL RESERVE BOARD
VOLUME 207
PAGE 150
701
701
6,251
701
6,696
702
4,970 2,160 ,
5,321 ,1595
AN
•
Form No. 131
Office Correspontence
Dr. GoldenwetiserTo
From
FEDERAL RESERVE
BOARD
111
Date_oet.- 21. 1930.
Subject:
Mr.•Pll
Dear 7yr. Goldenweiser:
I hear it often sa4d that the easy money policy of 1927 was all
right, but that the banks did not reverse soon enouet. You will remeMber
that the 44 rzAe at New York vas in effect from August 5. 1927 to
February 3, 1928, when it was increased to 0, on :!..ay 18 to 40.and on
July 13 to 51).
Will you be good enou0h to look over the figures as to
the Governments, acceotances, discounts, etc., and let me know Whether,
in your °Anion, we should have begun to increase earlier than we did.
You LIJNy remenber that Professor Sprague on March 7, 19'13, testified
before the Senate Banking and Currency Committee.
He stated that the
Federal reserve banks could contract brokers loans by selling Government
securities and putting Up discount res, but that it would have a reaction
to a gre,Aer or less extent on all other kinds of loans, and that if
persisted in, the reaction mYuld be more severe on legitimate business than
on brokers loans; that brokers loans are a minor evil, and their expansion
a matter of secondary ialortance; that it is not too high a. price to pay
for the strengthening of the
old st:_ndard on the other side and for
stimulation of the export trade.
On the other hand, on April 20, 1928, he wrote that the Board was
responsible for the increa:70 in broker loans; that we should have sold
200 millions of Government securities, and increased discount rates to 0
in March, 1928. He further said that successive further advances in discount
rates voould ultimately enforce contraction, but at the expense of burdening,
VOLUME 207
PAGE 151
Jo.
•
•
—2..
industry thrott[hout the country; that it is too higA a price to pay,
and it v!ould be far better to let the market rim its course.
Of these contradictory opinions, wnich, IflyOur o)inionl, is
correct?
Sincerely yours,
6
Form No. 131
Office Correspon!ence
To
FEDERAL RESERVE
BOARD
4-0
•
Date
October 23, 1930
Subject:
Mr.
From lir,_Goldeawels
2-8495
Referring to your memorandum of October 21, I have had Miss Hanford of
this division, who would presumably have no bias in the matter, look over
the two statements of Professor Sprague which you quote with a view to having
her reaction as to the degree of inconsistency between them.
nss Hanford
reaches the conclusion in the attached memorandum that when the two statements
are taken in their setting they are not as inconsistent as may appear at first
glance.
Perhaps the principal reason for this view is one which she does not
emphasize, namely, that brokers loans,which in the beginning of March had shown
no recent growth, after that had begun to risempre rapidly than at any previous
time, and by April 18 were about $430,000,000 higher than on March 7.
In reply to your question about my opinion in the matter, I do not think
that the Federal reserve system made any serious mistake in the early part of
1928.
I do think, however, that the absence of the usual seasonal decline in
acceptances during the first four months of that year had the effect of enabling
member banks to operate and expand their loans with a smaller increase in discounts than would otherwise have been necessary.
A rapid growth in discounts
did not begin until April and it became even more pronounced in May.
It is also
true that after the unusual sales of securities early in January the system did
not make any material reductions in its security holdings until April, which
also somewhat delayed the desired tightening of credit conditions.
As things
looked at that time, however, it was not clear in the early months of the year
whether the growth of speculation had come to a definite halt or not, and I
think that the system's somewhat hesitant open-merket policy during that period
VOLUME 207
PAGE 153
2/('
•
•
Mr. Hamlin, - #2
October 23, 1930
is explainable by the
absence
of clear indications in the trend at the time.
I attach a chart comparing the New York discount rate with the buying
rate on short maturities of bankers acceptances.
of these two rates is interesting.
per cent
I think that a comparison
4
When the discount rate was raised to
on February 3, 1928 the bill rate remained at 3 1/4 per cent, so
that there was a spread of three-fourths of one per cent between the two
rates, a larger splad than usual.
This large spread undoubtedly was a
factor in the maintenance of the level of acceptance holdings contrary to
the seasonal trend.
You will note that an even larger spread between the
two rates occurred in the autumn of 1929, but at that time it was a conscious intention of the system to ease the situationlas you well know.
A
spread that is nearly as large prevails at the present time, and is also a
part of easy money policy.
A better adjustment between the two rates early
in 1928 would probably have been desirable, but I should hesitate to consider its absence a serious mistake.
One other point that this chart brings out that has no immediate bearing on your inquiry, but may interest you, is that during the period between
March and August 1929 the bill rate was considerably above the sacepitgace d-4-4-44-414:1
rate and this reversal of the usual position of the rates was unquestionably
a factor working against the system's attempts to reduce member bank indebtednose at that time.
Fbrm No. 131
Office Correspontnce
To
Mr. Goldenweiser
From Miss Hanford
FEDERAL RESERVE
BOARD
•
Date
October 23, 1930
Subject: Mr. Hamlin's memorandum of
October 21, referring to Professor
Sprague's comments on brokers loans
•r
2-8495
The two opinions of Professor Sprague on brokers loans quoted by Mr.
Hamlin are not as inconsistent as the latter believes.
When Professor Sprague presented his evidence before the Senate Committee, they were considering prohibiting banks from investing funds in
brokers loans. For this reason, the main part of his speech is concerned
with emphasizing the legitimacy of such loans, their safety and liquidity
as a secondary reserve, and the impossibility of forcing a bank to use all
its funds in its own locality. The statement about the possibility of the
Federal reserve's forcing a contraction of brokers loans and the effect
such a move would have on business is only a minor part of the speech. The
article in the Annalist, on the contrary, deals entirely with this aspect
of brokers loans. The different circumstances and actual lengths of the two
statements make comparison unfair.
In his article in the Annalist of April 20, l928 Professor Sprague refers to previous articles he has written on this subject, and especially to
his testimony before the Senate Banking and Currency Committee. At that time
he was considering only a mild degree of increased activity in the security
markets, one brought about chiefly by an abundance of savings. Even then he
emphasized the danger of speculative enthusiasm's carryines the market beyond
the limits of safety, and the desirability of testing the market from time to
time by advancing rates and contracting credit.
In both statements, Professor Sprague holds that the financinR. of security markets is as legitimate a field for banks' funds as are commerce and industry. Inflated conditions in the security markets are less likely to produce unfavorable effects on the whole community than similar conditions in commodity markets or industry. Mild fluctuations in activity and prices in the
Stock Exchange need not be considered with alarm. Attempts to check moderate
inflation of security prices are apt to have a burdensome effect on industry as
a whole.
On March 7th, he considered that only a small amount of inflation had
occurred, one that in view of the financial conditions of other countries need
not be checked. By April 20th, he had decided that the degree of inflation
was no longer moderate, that high call rates were drawing funds from the legitimate needs of industry, and that the Federal reserve should contract credit.
He admits frankly that this move should have been made earlier, probably as one
of the "tests" of the market which he had advocated in his former speech. His
change of opinion is one of degree rather than of fundamental position.
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October 23, 1930
TO:
7aderal Reserve 7
13ord
FRO:
Mr. Smcad
SUIJECT:
Loans and Investments of
:ember Banks on Sept.
all., 1930
CO1TFIDEITTIAL
In connection with the Septem'cer 24 call for condition reports of member
bk.), the Federal reserve agents were requested to furnidh tne Board 7ith a
preliminaV
y classification of loans and investments, in advance of tho completion of the Board's consolidated Call Report. Statements givin these -Dreliminar:, figures for Septe:Lber 24 in comparison rith orevioas call dates are
attached hereto. The 2rincipal chanfes in the loan and investment account during the past quarter and year are as follows:
Total loans and investments of all meMter banks of tne Federal Reserve
System on So:)tember 24 amounted to $35,451,000,000, representing a decrease of
approximately $200,000,000 since June 30 of the present year and a decron.se Of
$460,000,000 since October 4 of last year.
Loans to customors declined further durin,z: the third quarter of the
preseVt year by approximately $640,000,000, this reductipn being partly offset
an increase of $440,000,000 in open market loans and investments. Durine the
period of about a year between October 4, 1929 and Septemler 24, 1930, loans
made to customers by member bnnks declined nearly $2,500,000,000. Open mark.et
loans durin the same period increased approximately $1,000,000,000 and investments in securities increased another $1,000,000,000.
Of the tot-.1 reduction of $640,000,000 in customers' loans reported for
the third quarter, $360,000,000 was in "All other" loans (largely so-called
commerci.7.1 r.nd industrial loans), and the balrnce 2rincipally in security
lonns. Th3 total increase of $440,000,000 in open market loans end
investments
durin:
, the quarter includes an increase of anproximately $300,000,000 in bonds
and other securities and of $100,000,000 in security loans made to New York
brokers.
The total reduction of ariproximatel7 $2,500,000,000 in customers'. loans
orted for the year is made up of a decline of $2,000,000,000 in "All other"
custoI- - s' loans, a reduction of $250,000,000 in customers' security loans,
principally to brokers outside New York, and .;3180,000,000 in loans to
baI nl:s.
The increase of nearly $2,000,000,000 in open market loans and investments
during the year includes increased holdin:
;s of bonds and other securities of n'eout
$1,000,000,000, an increase in security loans to Now York brokers of approximately $600,000,000, and an increase of $400,000,000 in holdings of
acceptances
and commercial paper.
Member bpnks in New York city increased their open market loans and
investments $1,130,000,000 durinz the year, while their loans to customers
declined
$700,000,000. Member banks in Chicalo and other reserve cities also
increased
their open market loans and investments approxi.nately Lt1,100,000,000,
offsetting
a substantially equivalent reduction in customers' loans. At country
banks, on
the other hand, there was a reduction durin& the year of a'ciout
$600,000,000 in
customers' loans and of $230,060,000 in open market loans and
investments.
VOLUME 207
(;
PAGE 155
Confidential
LOANS AND INVESTMENTS OF MEMBER BANKS ON SEPT. 24 AND JUNE 30, 1930, AND OCT. 4, 1929
(September 24, 1930 figures are preliminary.
All member banks
Sept. 214iJune 30
1930
1930
LOANS AND INVESUENTS - total
35,451
35,656
35,914
8,555
AIL
21,456
22,100
23,889
4 414
to customers - total
To banks:
On securities
All other
On securities (except to banks):
: To brokers outside New York
To other customers
On real estate:
Farm land
Other real estate
Other loans to customers
775
7,084
Open-market loans and investments Total
lik
n-market loans - total
Acceptances payable in U. S.
Acceptances payable abroad
Commercial paper purchased
Security loans to New York brokers
Investments - total
U. S. Government securities
Other securities
FEDER.LL RESERVE BOARD
DIVISION OF BANK OPERATIONS
,October 22, 1930
174
290
230 )
305)
Amounts in millions of dollars)
New York City*
Sept. 24 June 30loct. 4
1930
1929
1930
St. 6760-b
Chicago*
Reserve city banks
Oct. 4ISept.241June 301 Oct. 4 Sept.24!June 30
1929
1930 I 1930 I 1929
1930
1930
1
Country banks
Oct. 4 ISept.24[June 301 Oct, 4
1929
1930 I 1930 j 1929
8,798
8,150
1,930
1,3149
1,823
12,033
11,852
12,161
12,934
13,157
13,780
504
5, 1143
,22(
1,307
1,14142
7,723
7,997
8,626
8,060
8,292
8,672
302
35
6
68
76
117
225
10
50
78 )
118 )
143)
7)
11 )
52)
640
53
116
8/9
7,242
939
7,170
86
1,943
68
1,9514
46
1,898
239
448
229
487
257
504
360
2,584
431
2,663
510
2,598
90
2,109
90
2,137
125
2,170
337
2,761
9,985
386
2,769
10,349
392
2,760
11,988
157
2,088
157
2,129
1
175
2,726
1
16
482
2
18
521
2
19
592
111
3914
3,081
110
1,394
3,172
110
1,360
3,823
274
1,193
4,334
274
1,201
4,527
279
1,206
4,847
3,995
13,555
12,025
,110
4,294
3,003
702
542
380
14,310
3,853
3,533
14,872
)4,g66
5,107
3,258
205
60
521
2,472
3,113
170
#71
#507
2,365
2,276
93
70
22C
1,885
1,912
148
28
22
1,714
2,091
1-44
29
35
1,883
1,196
59
33
8
1,096
295
7
13
42
233
176
2
19
99
59
534
17
#19
#245
253
458
56
6s
1
4
4
283
3
3
162
115
10,442
9,749
2,198
2,203
4,061
4,022
1,091
1,147
6,380
5,727
1,107
1,056
*Central reserve city banks only
#Revised.
1,807
989
817
407
157
250
366
160
205
312
153
160
10,737
4,092
6,645
767
47
17
294
409'
3,5'43
1,628
1,915
99 )
128 )
3,319
1,525
1,794
27
71
354
3,075
1,519
1,557
4,589
1,216
3,373
145
312
553
g
27
146
.144
171
129
376
4,554
1,229
4,554
1,361
3,326
3,193
CONFITIRATTIAL
Date
ALL MEMBER BANKS -- PRE=INARY CLASSIFICA=ON OF LOANS AND INVESTYMTTS ON SEPTEMBER 24, 1930, COMPARED WITH PRECEDING CALL DATES
St. 6760
(Amounts in millions of dollars)
Investments
o
L
a
Real estate loans
Bills, ac- [Commercial Loans to banks
Loans on securities,
Total
Govern- Other
All
Acceipceptances,
loans
Iaper
exclusive of loans to banks
securment
On other other To tal
On
and
etc., pay,-, boujht in
To brokers
Total tances
All
securities
loans
farm
real
investopen
To
payable able in forsecur- other
and dealers
Total
ties
estate
eign counothers land
ments
in
market
ities
In New Outside
tries
New York
U. S.
York
TOTAL - ALL IfiCE!SER BANKS
8,218
34,929 24,325
so
421
101
6,217
35,684 25,155
412
103
109
V
0(
oct. 3
Dec. 31
, Mar. 27
June 29
Oct. 4
Dec. 31
1930, Mar. 27
June 30
Sept.24
35,393 24,945
146
93
35,711
108
90
25,658
35,914 26,165
53
7o
212
SO
175
79
170
205
471
5,254
6,01s
5,754
5o
61
59
55
61
52
6,341
35,934
35,056
35,656
35,451
26,150
25,119
2 ,214
2 ,714
oct. 3
Dec. 31
7,197
7,951
1929, Mar. 27
June 29
Oct. 4
Dec. 31
1930, Mar. 27
• June 30
Sept.24
7,726
8,160
192g,
6o
58
58
8,15o
6,344
59
8,774
8,238
8,756
6,683
6,152
6,596,_
128
144
8,555
6,35b
148
33
46
4o
29
1928, oct. 3
1,910
1,505
1
3
Dec. 31
1929, Mar. 27
June 20
1,910
1,7)3
1,767
1,519
1,456
1,433
1
8
1
1
1,757
1,448
1,406
1
9
3
oct.
4
Dec. 31
1930, Mar. 27
June 30
Sept.24
1,823 1,510
1,717
1,849
1,930
1,433
1,524
ss
2
7
260
23o
174
28
5
3
4
5
11
19
63
23
37
4o3
414
392
388
394
S.
387
267
305
290
NEW YORK CITY*
287
2,416
288
3,347
251
314
302
322
49
35
2,253
2,100
2,361
2,480
2,726
Sc
3,236
3,040
3,401
3,412
3,9S*
3,(44
119
75
is
48
59
11
140
99
233
21
14
10
6
4
5
33
13
*Central reserve city
5,994
5,g5s
5,727
5,921
5,852
6,380
6,645
only.
III
252
309
311
242
257
24o
194
229
239
543
59g
477
484
504
533
474
487
448
3
3
2
2
2
2
2
2
1
41
39
19
22
19
19
18
18
16
2,595
1,942
1,933
1,972
1,819
1,807
2,091
2,252
2,129
2,088
2,203
2,198
472
521
482
405
391
337
334
312
S.
310
366
1407
CONFIDENTIAL
Date
•
192$, Oct. 3
Dec. 31
1929, Mar. 27
June 1.
Oct.
Dec. 31
1930, Mar. 27
June 30
Sept. 211.
1928, Oct. 3
Dec. 31
Mar. 27
9, June 29
.
Oct. 4
Dec. 31
1930, Mar. 27
June 30
Sept. 24
COMPARED WITH PRECEDING CALL DATES
ALL MEMBER BAYKS -- PRELIMINARY CLASSIFICATION OF LOANS AND INVESTMENTS ON SEPTEMBER 24, 1930,
St. 6760a
(Amounts in millions of dollars)
Investments
a
U. S.
Real estate loans
Loans on securities,
Accep- Bills, ac- Commercial Loans to banks
Total
Other
GovernAll
exclusive of loans to banks
paper
tances ceptances,
loans
securOn other other Total ment
On
To brokers
All
On
Total payable etc.,pay- bought in
and
secur- ities
loans
real
farm
To
dealers
and
secur- other Total
able in for- open
in
investities
estsite
land
others
Ibutside
In New
ities
market
U. S. eign counments
York 'New York
tries
12,211
12,156
12,132
12,065
12,161
12,029
11,858
11,852
12,033
13,612
13,667
13,741
13,719
13,780
13,375
13,243
13,157
12,934
8,631
8,702
8,733
8,789
9,085
9,084
8,752
8,533
8,490
8,885
8,915
9,001
9,096
9,226
8,936
8,768
8,602
8,344
DIVISION OF BANK OPERATIOUS
, FEDERAL RESERVE BOARD
OCTOBER 22, 1930.
.
Digitized
L for FRASER
5
16
35
16
6
43
55
17
47
24
30
44
33
27
33
27
8
3
27
33
27
22
27
24
24
y1
17
17
8
8
7
6
5
4
4
3
178
136
136
83
71
102
209
v245
294
195
211
192
140
144
163
207
171
162
4Revised..
RESERVE CITY BANKS
522
3,109
179
465
3,293
173
405
3,358
196
302
3,294
241
354
3,462
225
239
3,440
258
469
101 3,405
104
253
128 3,348
99
409
117 3,353
76
46
37
39
49
45
45
14
11
10
COUNTRY BANKS
2,106
2,281
2,409
2,455
2,671
2,522
51 2,449
52 2,356
50 2,314
378
376
354
316
376
208
258
129
115
,
435
509
538
511
510
425
360
431
c.
2,152
2,318
2,415
2,480
2,598
2,775
2,576
2,663
2,584
124
118
112
119
110
110
113
110
111
1,387
1,376
1,360
1,360
1,428
1,411
1,354
1,394
3,691 3,530
3,546 3,454
3,492 3,400
3,654 3,276
3,823 3,075
3,679 2,944
3,330 3,105
3,172 3,319
3,081 3,543
1,662
1,732
1,607
1,519
1,368
1,516
1,525
1,628
1,827
1,791
1,66g
1,670
1,557
1,576
1,590
1,794
1,915
117
107
114
105
125
83
93
90
90
1,610
1,799
1,542
2,034
2,170
2,231
2,097
2,137
2,109
294
290
289
291
279
276
279
274
274
1,129
1,154
1,176
1,195
1,206
1,186
1,196
1,201
1,193
5,075 4,727
4,904 4,751
4,843 4,740
4,926 4,623
4,847 4,554
4,705 4,439
4,541 4,475
4,527 4,554
4,334 4,589
1,362
1,382
1,424
1,384
1,361
1,267
1,273
1,229
1,216
3,365
3,370
3,316
3,240
3,193
3,172
3,202
3,326
3,373
7.,t1
1,368
1,703
@FedFRASER