The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Hamlin, Charles S., Scrap Book — Volume 211, FRBoard Members Tr-4 A 205.001 - Hamlin Charles S Scrap Book - Volume 211 FRBoerd Members ill BOARD OF GOVERNORS OF THE • Office Correspondence To From The Files • FEDERAL RESERVE SYSTEM Date August 2, 1941 Subject: Mr. Coe 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 211 of Mr. Hamlin's scrap book and placed in the Board's files: VOLUME 211 Page 25 Memo to Board from Mr. Smead re Loans and Investments of Member Banks on December 31, 1930. Page 69 Proposed letter to Mr. Platt re discount rates. Page 117 Letter to.. all F.R. Agents re Condition of member banks as of December 31, 1930. Page 125 Earnings & Expenses of F.R. Banks, January 1931. Page 152 Memo to Mr. Hamlin from Mr. Smead re Discount rates in New York and London. • )11' • ' 1 ie. il[anain It.A. 441. 4 January 29, 1931. B-232a To: Federal Reserve Board SUBJECT: Loans and investments of member banks on December 31, 1930. From: Mr. Smead CONFIDENTIAL Attached hereto is a table giving a preliminary classification of loans and investments of all member banks at the end of 1930, based on summaries furnished by the Federal reserve agents pending the completion of the Board's consolidated Call Report. It will be noted that the table shows a net reduction of approximately $700,000,000 in member bank loans and investments during the last quarter of the year. The principal changes for the quarter were reductions of nearly $1,000,000,000 in security loans to New York brokers and of $160,000,000 in holdings of commercial paper, and increases of $25Q,000,000 in investments in securities, $150,000,000 in loans to other banks, and $100,000,000 in acceptance holdings. Member banks in New York City reported little change in aggregate loans and investments, but their investment holdings increased $240,000,000, loans to other banks $110,000,000 and loans to other customers $50,000,000, while loans to brokers in New York declined $430,000,000. Reserve city banks reported a reduction of $325,000,000 in brokers' loans and of $150,000,000 in total loans and investments. Country banks had a decrease of nearly $500,000,000 in loans and investments, of which about $300,000,000 was in customers' loans, $110,000,000 in open-market loans and $70,000,000 in investments. In comparing the figures with the preceding call, it should be remembered that losses to membership through the suspension of large member banks in New York, Louisville, Little Rock and Knoxville, partly offset by the absorption of a large nonmember in California, are responsible in part for the changes in the loan and investment acc3unt daring the quarter. As nearly as can be determined at this time, these changes in membership account for about $50,000,000 of the total reduction of $700,000,000 in loans and investments during the quarter. VOLUME 211 PAGE 25 C07:77DENT IAL • ALL YIEMDER BANKS -- PRELIMINARY CLASSIFICATION OF LOAITS AHD MVESTLTNTS ON DECEMBER 31, 1930, COMPARED WITH PRECEDING CALL DATES B-232 Loans to customers, exclusive of banks Loans to banks Open market loans Investments Total urity On securities On real estate OtherSec Acce )t- AcceptU.S. Cornloans on To loans to To loans Other All Other ances ances Government mere ial Date and seciariTotal brokers other Farm York New to Total Total securiother pay-able payable paper real securities invest- ties okers outside cusland estate cus-br ties U.S. in abroad ments New York toners tomers TO TAL-ALL MEY.ZZR Z.:INKS 975 6,373 412 2,711 10,991 3,158 35,684 (a) (a) 21,462 1928, Dec. 31 103 6,217 2,556 10,529 4,312 109 390 23,194 (a) 803 7,685 388 11,515 1929, Dec. 31 2,603 2,243 1,660 9,784 3,863 291 212 80 5,921 35,934 (a) 35,472 774 7,090 367 175 231 21,010 1930, Sept.24 2,77b 9,982 3,262 2,472 10,734 4,095 205 62 523 6,639 34,784 314 313 20,937 677 7,262 385 Dec. 31 2,841 9,772 2,231 1,497 10,989 4,118 364 315 6,871 55 CITY* YEW YORK 3,940 (a) 50 1,658 7,951 (a) 1928, Dec. 31 132 2,100 1,790 1,933 1,094 61 61 1,639 29 839 (a) 4,964 6,774 55 2,145 (a) 1929, Dec. 31 169 2,595 1,397 46 1,202 2,091 128 1,112 21 I 979 I 8,557 4,276 116 86 1,945 1930, Sept.24 157 .2,00 1,912 1,714 2,133 1,091 148 28 53 1,107 22 151 104 2,033 4,335 8,579 132 Dec. 31 147 2,051 1,525 34 1,261 2,435 1,239 188 22 1,196 1)28, Dec. 31 1929, Dec. 31 1930, Sept.24 Dec. 31 RESERVE CITY BANR % 1928, Dec. 31 1929, Dec. 31 1930, SepD.24 Dec. 31 COUNTRY B.:=1:KS 1926, Dec. 31 1929, Dec. 31 1530, Sept.24 Dec. 31 • 4 1,910 1,757 1,934 1,860 (a) (a) 35 42 (a) (a) 6 13 1,369 1,329 1,187 1,194 309 240 239 201 596 533 446 472 3 2 2 2 39 19 16 18 440 535 482 501 91 30 296 95 1 9 7 13 1 5 13 14 12,156 12,029 12,038 11,867 (a) (a) 77 125 (a) (a) 117 105 7,676 6,417 7,540 7,704 509 425 360 312 2,318 2,775 2,586 2,670 118 110 111 120 1,387 1,428 1,398 1,467 3,546 3,679 3,065 3,115 650 408 768 434 16 43 47 104 13,667 13,375 12,944 12,456 (a) (a) 11 15 (a) (a) 51 45 8,254 8,481 8,oo6 7,703 107 83 86 59 1,799 2,231 2,112 2,067 290 276 275 262 1,154 1,186 1,205 1,189 4,904 4,705 4,326 4,106 625 409 286 176 FEDMiAL RESERVE BOLRD Dna SION OF BANK JANUARY 28, 1931 ,5 42 16 75 11 233 45 391 309 1409 516 174 1.1.6 157 240 217 193 252 276 33 24 17 15 136 102 295 193 465 239 409 122 3,454 2,944 3,537 3,518 1,662 1,363 1,628 1,466 1,791 1,576 1,90 2,032 30 33 8 5 211 163 14 14 161+ 3 119 376 208 115 49 4,751 4,439 4,589 4,520 1,32 1,67 1,219 1,153 3,370 3,172 3,370 3,367 5 114 (a) Figures not available. * Central reserve ci tL, banks only. VOLUME 211 PAGE 25 • FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD February 5, 1931. -Leas....liz..-P-latt: A)a.14.-"4 I have your note of February 3rd. In looking over my records I find that on Wednesday, January 21, 1920,' the Federal Reserve Bank of New York -Proposed a rate of 51' per cent for Treasury certificates, liberty bonds and commercial paper; that Mr. Leffingwell objected bitterly and Governor Harding wired some of the New York directors to come down for a conference. Mr. Jay and Mr. Alexander came down on Monday and were with Governor Harding, Mr. Strauss and Mr. Leffingwell practically all day. were present. No other members of the Board Later in the day Mr. Strauss told .me that an .agreakient had been reached to inform the New York directors that they must keen in a rate of 4- per cent on certificate paper for the present, and that if they would not agree to this the Board would put in such a rate; that Mr. Alexander agreed to this and took the message back. Later, Governor Harding informed the Board that the New York directors had accepted his suggestion and unanimously sent in a schedule keeping a 4i per cent rate on certificate paper and 5A- per cent on everything else. VOLUME 211 PAGE 69 • -2- Governor Harding then announced that Mr. Leffingwell wanted us to put up commercial paper rates to 6 per cent and liberty bond paoer . 434 cmi444 ff, leaving purchase paper for a short period at 4i per cent. to 5-1 Governor Harding said he agreed to this and that Secretary Glass told him he could not be at the meeting but that Mr. Leffingwell was authorized to speak for him. Mr. Leffingwell then came in and addressed the Board. by ouoting a letter dated DeceLiber He began 196b, fram Governor Strong, stating that at last, after years of effort, his bank had succeeded in establishing one rate for money and that by this the New York bank had shown it was a real central bank like the Bank of England. Mr. Leffingwell then quoted from Hartley Wither's book to Show that Governor Strong was wrong, and that the Dank of England did not have one rate for money. Governor .Arong stated in the letter that he had done in two years What the Bank of England had taken 250 years to do - one rate for money. (C.S.H. memo. - Wither's book shows that the Bank of &gland rate is only a minimum rate and that the bank freouently imposes higher rates without changing the official bank rate). Mr. Leffingwell then stated that under the -)resent rate of 4i per cent there is a direct incentive to member banks to loan at 6 per ceat (the maximum usury New York rate) thus making a considerable profit. He pointed out our low reserve position and said that nothing but a drastic increase in commercial paper to 6 per cent will control the situation; that we were dangerously near leaving • -3- the gold standard; that the expected January liquidation had not taken place; that on the contrary, the member banks had increased their loans and reserves enormously since September 1, 1919; that 444441444r the loans and reserves of the Federal reserve banks had increased 04. nearly 800,000,000; that although currency had turned the tide andwas receding, credits were enormously increased; that soon a new gold embargo would have to be put on, and we should likely reach an inflation up to the European standard; that the so-called commercial paper held by Federal reserve banks was "bunk"; that it was absolutely unliquid and would never be paid.. C.S.H. pointed out that while a 6 per cent rate might be necessary, yet an immediate advance of 1 panic conditions. per cent might give rise to Mr. Leffingwell flouted this, but said if a panic in New York should break out, he would be glad of it. C.S.H. suggested two bites of the cherry but Mr. Leffingwell did not agree to this. The Board adjourned until afternoon, and C.S.H. requested Leffingwell to communicate with Secretary Glass as to the 6 per cent rate. In the afternoon Secretary Glass and Mr. Leffingwell kept us waiting for about half an hour. When Secretary Glass came into the meet- ing, he said that he favored this immediate increase. C.S.H. said he feared it might cause much excitement and uneasiness and bring about very disturbed conditions. Neither Secretary Glass nor Mr. Leffingwell -.461.4434444 would agree to this, mesliti. C.S.H. pointed out that distrust might be caused which would lead to violent contraction, even to presentation of Federal reserve notes for redemption in gold. C.S.H. also referred to the fact that just before adjourning this morning, ivir. Strauss called uo Mr. Case at New York, and that he later reolied that the executive committee and Lir. Alexander were a unit in o-oposing such a arastic increase; that Mr. Alexander said an tu- mediate increase to 6 per cent would cause much uneasiness; that people would think the Federal Reserve Board had lost its head or that conditions must be very critical to call for such drastic increase; that there was also danger that it might cause panic conditions. Governor Harding said that 6 per cent was right, both to prevent profit from rediscounting, and because 6 per cent was the legal limit under the New York usury laws. a Governor Harding and Mr. Leffingwell said that/5i per cent rate on loans secured by Government bonds and Treasury notes would do no harm as it would not be profitable to borrow on Government bonds When the discount rate was 5i per cent. Governor Harding then moved to fix the New York rate at 4t per cent for Treasury certificates, 5i per cent for notes secured by Government bonds and victory notes, and 6 per cent for commercial Paper. Comptroller Williams moved to amend by making the rates 4, 5 and 5i per cent. This was passed. ' ,Aye" - C.S.H, Williams, Miller and Moehlennah. "No" - Governor Harding and Strauss. Discussion was then renewed and Governor Harding asked C.S.H. if he would move to reconsider so that he could out the matter before the Board in a better way. It was then voted to reconsider. S -5- Governor Harding then moved (1) that the Treasury certificate rate be fixed at 4; unanimously passed; (2) that a differential of 3 .- be made between Fovernment bonds and commercial paper; unanimously passed; (3) 6 -Jer cent for commercial paper; this resulted in a tie, as Dr. Miller changed his vote. "Aye" - Governor Harding, Strauss and Miller. "No" - C.S.H., Williams and Moehlen726h. Secretary Glass announced that the motion had failed, but Williams said Secretary Glass should vote. Secretary Glass thereupon voted "aye", and declared the motion carried. Later in the evening, C.S.H. met Secretary Glass who said that since the above vote he was not so sure he had voted correctly, that it was all a matter of conjecture, and asked C.S.H. if he really felt it might bring about a sudden contraction. C.S.H. told Secretary Glass that was his fear but he hoped he might prove to be mistaken. C.S.H. added that Governor Harding was to take up the matter with the New York, Boston and Philadelphia banks tomorrow, and that if there was much objection, the matter might be brought up again. Secretary Glass stated that he regarded this vote as only tentative. Thursday, January 22. At the meeting Mr. Strauss reported that he had talked the matter over with Acting Governor Case in New York, who had consulted his executive committee, which had reached the conclusion that it preferred to have the Federal Reserve Board fix the rate on its own initiative, and not have it appear that the bank had recommended these rates. C.S.H. states that the New York directors absolutely opposed the 6 -6per cent rate, although they did not expressly so state. Governor Harding reoorted that he had called up Governor Morss at Boston, who at first seemed staggered at the 6 ner cent rate, but finally stated that he approved it, and later a telegram was received saying that his directors wished to recommend this schedule and not have the Board fix it at its own initiative. Governor Harding stated that Philadelphia had also agreed to the rate. It was then voted to notify each of the three banks, the rates to go into effect tomorrow, Friday morning. C.S.H. is still inclined to feel that this drastic increase may do some harm; that although such a rate was ultimately necessary, he felt the Board Should take two bites of the cherry at intervals, even if only for a few days. Mr. Edmund S. Platt, Care Marine Midland Group, Inc., Room 820, 120 Broadway, New York, N. Y. IF 411 . Hamlin 111 FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD February 13, 1931 B - 24S SUBJECT: Condition of member banks as of December 31, 1930. Dear Sir: For your information there is enclosed herewith a statement showing the resources and liabilities of all member banks in each Federal reserve district as of December 31,1930, also a statement giving a classification of loans, investments, deposits and borrowings of member banks in each district on the same date. The Board's Member Bank Call Report (No. 50) giving detailed figures by states, cities and classes of banks, inhich will include the data shown in the enclosed statements, will be ready for distribution early in March. Very truly yours, E. L. Smead, Chief, Division of Bank Operations. TO ALL GOVERNORS AND FEDERAL RESERVE AGMTTS* VOLUME 211 PAGE 117 144. 411. , ALL 1/11/231.73. BANKS - CLASSIFICATION OF LOANS, INVESTIENTS, DELr.A1TD AND TEE DEPOSITS, AND BORROW=GS ON DECEL.23M 31, 1530, BY FEDERAL RESMVE DISTRICTS (Contld) (Amounts in thousands 9f dollars) Reserve Federal St. PhilaTotal Cleveland Richmond Atlanta Chicago New Yorkl Boston Louis delphia I 17,501,550 1,274,560 6,522,727 1,118,843 1,375,372 Demand deposits - total 999,768 1,203,202 Individual deposits subject to check 15,560,443 1,152,580 6,257,407 15,305 5,651 34,548 Certificates of deposit 13,324 152,359 93,678 315,452 132,535 87,352 State, county, and municipal deposits 1,362,482 20,326 19,746 275,320 21,254 386,226 other 502,347 446,289 4,560 46,433 4,955 492,482 2,309,921 408,377 2,062,732 30,000 5,005 205,509 72,323 11,230 6,777 586,556 513,763 2o,33() 49,0a 3,793 3-248d District Minn- k Kansas eapolisl City F Dallas I San Francisco 392,705 743,615 543,774 1,238,244 313,281 604,380 469,233 1,089,431 10,553 25,107 11,513 12,394 125,538 64,372 110,944 58,841 12,722 4,187 3,184 2,662 Net demand deposits 18,969,380 1,309,501 7,746,316 1,187,035 1,512,452 520,162 509,161 2,491,270 615,225 397,715 801,705 573,978 1,303,852 Time deposits - total 13,546,231 955,113 3,171,518 1,175,585 1,6,52,812 538,383 410,425 2,134,593 470,353 453,853 372,125 233,608 1,933 428 States, counties, and municipalities Banks in United States Banks in foreign countries Other time deposits Evidenced by savings pass books Certificates of deposit Open accounts, Christmas savings accounts, etc. Postal savings Bills payable and rediscounts - total 4!! 71 h Federal reserve banks: Bills payable Rediscounts All other: Bills payable 'Rediscounts 505,029 107,405 237,581 9,590,953 1,884,919 1,027,209 189,105 18,687 4,525 93,961 22,618 23,000 16,637 763,132 2,137,953 212,231 157,040 893,993 168,761 1,330,551 510,566 41,707 84,445 4,722 80,003 9,217 19,850 13,774 157,630 6,314 19,960 35,297 7,?37 4,927 loo 38,860 1,517 11,046 3,081 46,077 40,661 182,313 8,153 2,7)1)1 21,510 14,225 4,321 410,415 268,541 1,402,442 248,835 192,144 87,677 79,834 403,374 177,799 21,139 549 219,408 11,394 10,558 187,325 166,572 151,081 111,153 32,158 1,517,762 111,057 6,130 10,156 253,221 14,582 458 21,973 15,956 9,202 7,878 21,377 35,074 23,383 7,313 5,877 44,413 18,136 355,168 19,230 - 88,146 40,7 714 50,938 31,584 26,409 31,327 20,755 4,868 16,455 5,958 18,724 138,843 109,174 5,919 7,497 44,356 14,152 14,316 10,940 24,359 12,893 5,826 15,275 3,960 13,006 11,731 11,149 8,583 4,045 500 3,251 5,235 10,846 1,495 2,696 11,563 3,424 101,710 5,441 5,715 99 29,353 285 14,956 562 12,984 702 8,887 596 8,506 937 7,814 633 7,444 1,022 683 95 307 67 1,583 184 3,139 598 ALL ME1OER BANKS (7,033 NATIONAL BANES AND 1,019 STATE BANKS) - CONDITION ON DECEMBER 31, 1930, BY FEDERAL RESERVE DISTRICTS (In thousands of dollars) B-246a Federal Reserve District I PhilaTotal St. MinnKansas I San New Boston levelandiRichmond I Atlanta Chicago YorkIdelphia Louis eapolis I City I Dallas Francisco k RESOURCES 23,870,463 1,749,779 8,299,575 1,767,136 2,262,364 Loans (including overdrafts) 642,172 231,504 4,124,776 1,493,650 445,525 U. S. Government securities 219,250 109,625 5,864,247 529,596 Other securities 2,229,531 746,618 710,868 201,806 TOTAL LOANS AND INVESTMENTS 34,859,511 2,510,879 12,023,389 2,733,204 3,416,757 1,153,503 mers' liability on account 1,117,833 acceptances 800,541 55,420 26,992 24,162 9,594 Banking house, furniture, and 1,240,)P1); fixtures 334,478 72,238 150,504 107,650 61,529 191,169 Other real estate owned 26,455 15,168 25,245 31,196 9,323 592,504 153,416 Cash in vault 45,314 59,145 37,569 33,351 Reserve with F. R. banks 2,474,509 147,295 1,062,054 145,098 165,745 63,153 Items with F. L. bnrIcs in process of collection 757,216 305,143 56,594 73,000 32,569 63,757 Due from banks in United States 150,613 2 455 948 296,202 194,723 98,169 145,079 Due from banks in foreign countries (including own branches) 260,516 34,672 183,755 2, 291 5,975 7,569 Exchanges for clearing house and other checks on local banks 2,076,169 45,929 1,562,841 63,227 22,409 52,877 Outside checks and other cash items 92,755 15,745 3,109 6,887 5,576 3,037 Redemption fund and due from S. Treasurer 32,316 4,574 2,789 3,808 2,263 2,374 A tances of other banks and bills of exchange or drafts sold with indorsement 652,666 22,574 515,995 10,651 6,917 5,428 Securities borrowed 21,069 247 915 7,284 1,066 329 Other assets 222,911 11,575 94,023 16,017 22,794 7,246 glir TOTAL 4 47,057,591 3,202,933 767,429 725,754 3,405,956 536,463 112,276 94,265 151,389 865,003 272,008 969,419 4,609,422 1,153,702 494,527 716,686 122,434 172,843 234,169 257,514 851,130 1,147,050 9,676 96,651 2,602 1,272 54,406 14,370 32,489 62,543 175,700 23,795 75,12° 361,773 36,1415 12,154 24,556 69,644 16,985 134,760 59,014 427,163 1,005 29 600,957 2,217,848 117,699 467,007 103,780 561,465 822,436 3,246,320 6,092 54,752 27,076 4,753 15,622 45,364 42,102 47,077 9,516 0,201 25,341 21,357 53,255 58,104 127,969 10,993 59,923 152,435 29,783 122,559 6,026 142,016 29,533 19,896 232,075 184,127 34,616 325,462 9,858 1,492 1,150 564 407 12,070 21,178 7,0.56 128,467 17,373 19,065 3,656 11,060 3,029 22,419 4,995 13,900 2,931 59,817 19,339 2,322 4,488 1,381 1,297 1,574 2,236 3,212 5,501 1,223 4,519 75,326 2,260 25,837 91 4,990 4,323 30 66 8,849 14 1,119 3,006 273 568 1,972 15,655 958 22,650 17,401,539 3,389,839 4,243,875 1,516,767 1,358,552 6,331,297 1,486,713 1,124,742 1,604,3201490,912 4,206,372 ALL 1331,23M BANKS (7,033 NATIONAL BANKS AND 1,019 STATE BANKS) - CONDITION ON DECE:.3Z3. 51, 1930, BY TEDERAL RESERVE DISTRICTS B-248b (Amounts in thousands of dollars) Reserve District Federal iviinnKansas Total Phila-Chicago St.Louis . iCleveland Richmond Boston 1New York Atlanta Dallas City eapolis delphia LIABILITIES 2,665,151 Capital stock paid in 2,822,091 Surplus Undivided profits - net 894,386 Reserves for dividends, contingencies, etc. 211,407 Reserves for interest, taxes, and other expenses accrued and Id. 121,190 41P6 o Due Federal reserve banks 49,267 Due to other banks in United States 3,872,842 Due to banks in foreign countries (including own branches) 634,927 Certified and officers' checks outstanding 1,223,777 Cash letters of credit and travelers' checks outstanding 20,960 Demand deposits 17,501,550 Time deposits 13,546,201 United States'deposits 267,415 TOTAL DEPOSITS 37,116,939 Agreements to repurchase U. S. Govt. or other securities sold 158,141 Bills payable and rediscounts: Federal reserve bank 248,017 Allother 107,151 Acceptances of other banks and bills sold with endorsement 662,686 Acceptances executed for customers 1,138,624 Acceptances executed by other banks for account of reporting banks 15,031 National-bank notes outstanding 639,640 Securities borrowed 21,069 Other liabilities 236,366 ^TOTAL 47,057,891 Number of banks 8,052 San Francisco 80,807 231,068 2)2,241 73,399 105,808 80,649 26,737 97,191 66,109 17,698 364,841 294,941 86,237 100,122 58,425 214,206 63,265 35,808 14,099 93,383 44,706 22,397 91 ,:)53 47,083 23,256 231,110 149,186 47,466 73,641 23,553 21,849 8,550 3,318 34,583 5,175 4,555 4,579 3,952 15,271 11,621 36,353 6,809 17,533 188,569 1,444,270 6,281 6,795 227,266 12,810 5,003 5,065 4,848 3,021 109 138,047 3,202 112,480 28,137 4,116 557,610 4,796 305,779 2,884 1,885 120,006 2,717 1,322 139,200 4,301 823 308,924 196,149 905,846 178,853 1,212,004 408,844 69,242 184,715 12,381 362,086 4 20 104,119 226,572 20,835 553,381 4,011 3,097 1,017 2,358 28,911 312 849 254 888 18,964 23,132 875,833 25,424 53,613 15,107 13,305 69,881 10,565 8,266 37,937 29,352 61,362 13,436 381 1,274,560 6,922,727 995,113 3,171,518 23,788 51,637 2,533,237 13,050,337 51 1,118,843 1,173,585 45 20 2,012 3,621 50 1,375,372 502,347 492,482 2,309,922 586,956 1,652,812 538,383 410,425 2,134,998 470,353 40,767 27,770 21,525 28,500 18,105 4,393 2,577,500 3,427,997 1,192,332 1,068,251 5,148,216 1,210,765 71 27 392,709 743,615 459,853 372,125 4,306 2,480 968,307 1,3814,900 1,035 543,77 1,236,244 233,608 1,933,428 13,574 30,570 961,727 3,593,350 14,972 106,529 1,040 10,678 312 535 14,014 5,323 182 872 1,083 2,601 13,416 5,814 58,508 25,256 15,518 37,252 13,686 22,101 9,483 16,966 9,443 22,880 6,447 12,628 8,127 3,751 1,117 16,081 374 4,191 29,638 1,767 14,987 3,737 22,574 88,495 515,995 812,942 6,917 10,681 23,717 5,428 9,662 6,501 13,038 78,326 97,311 91 2,606 30 1,310 14 26,191 273 6,526 15,856 56,797 10,792 133 1,732 611 757 45,038 55,204 90,763 47,243 75,592 247 915 1,068 7,284 329 10,137 88,432 22,710 2,196 15,010 4,243,875 1,516,767 3,232,933 17,1401,5393,389,839 396 9114 470 753 757 56 485 89,283 29 35 3 27,655 43,711 25,962 31,365 4,990 68 2,280 1,119 1,223 23,524 1,487 11,658 61,316 1,299 1,358,582 6,331,297 1,1486,713 1,12)4,7)42,6014,320 513 642 871 1,081 390 427 63,904 958 6,421 1,190,912 4,236,372 684 581 01.11• 43,920 588 2,176 ALL YEMBER BANKS - CLASSIFICATION OF LOANS, INVESTMENTS, DEMAND AND TIME DEPOSITS, AND BORROWINGS ON DECEMBER 31, 1930, BY FEDERAL RESEhVE DISTRICTS B-248c Ckmounts in thousands of dollars) Reserve District Federal I San St. Minn- [Kansas I Total Phila- 1 RichmondjAtlantal Chicago New York Boston Louis eapolisl City 'Dallas Francisco delphia I Cleveland23,870,1488 1,749,779 8,299,878 1,767,136 2,262,364 842,172 725,754 3,405,556 7.87,42 14914,527716,688 600,957 2,217,848 Loans - total 14,904 3,987 17,667 467 534 3,280 772 314,301 74,395 190,603 7,953 Domestic acceptances 239 488 7,283 535 14,348 112 708 2,237 791 227 54,946 2,372 23,086 2,759 Foreign bills and acceptances 9,946 36,825 31,092 52,722 7,757 15,774 14,049 21,063 21,530 38,205 58,872 58,000 Commercial paper bought in open market 365,875 61,497 4,171 9,667 1,269 4,572 1,507 4,167 7,418 29,407 44,304 134,158 314,76s 12,631 Loans to banks: On securities 6,481 28,399 18,641 321,693 23,311 6,015 18,870 17,020 13,395 11,545 154,118 19,959 3,939 All other Loans on securities, exclusive of 546,963 684,6)01 922,206 246,932 173,021 1,325,840 251,650 124,237 140,973 121,454 673,338 4,227,902 9,439,160 lloans to banks - Total 2,328 3,059 49,325 16,232 4,194 16,099 14,489 9,612 921 York 16,038 New 53,724 1,311,409 dealers in and brokers To 1,497,530 59,254 234,593 13,825 22,070 5,564 3,952 12,975 55,689 56,830 7,420 elsewhere 675,286 120,741 78,373 dealers To brokers and 115,174 130,494 471,610 149,584 114,479 1,041,922 213,253 7,266,344 850,887 608,867 233,036 541,241 2,795,752 To others 114,796 30,619 17,493 26,820 13,806 14,167 336,726 7,522 77,2914 23,535 23,983 21,864 17,422 Real estate loans: On farm land 606,531 95,008 20,406 467,831 22,850 23,702 228,164 51,17.8 436,129 On other real estate 2,847,045 529,965 264,742 50,539 882,436 9,825,474 743,857 636,433 2,967,007 All other loans (including overdrafts) 757,815 486,130 437,090 1,360,358 356,668 296,970 434,787 415,523 Loans eligible for rediscount 472,637 178,045 164,972 231,265 188,195 243,721 3,538,001 199,775 1,025,611 285,554 with Federal reserve banks 205,730 170,152 167,500 _538,463 94,255 122,434 172,848 117,695 467,007 112,276 445,525 105,825 securities 4,124,776 219,250 - total 231,504 1,493,680 U. S. Government 416,196 204,236 416,918 98,460 93,002 360,607 74,024 109,622 135,244 94,472 3,270,871 Bonds 190,415 1,077,675 73,843 10,810 6,156 6,080 484,911 11,532 Treasury notes 16,522 261,201 11,272 5,356 28,709 10,633 38,397 11,151 3,422 8,394 12,524 8,916 13,167 3,164 13,436 296,418 5,209 104,563 Certificates of indebtedness 16,700 55,772 1,263 515 8,241 34 501 70 27 Treasury bills 7,467 50,241 3,639 578 72,576 561,465 Other securities - total 746,818 710,868 201,806 151,389 865,003 272,008 234,169 257,514 103,780 6,364.247 52c),556 2,22c),831 786,730 248,701 204,448 238,755 98,634 Domestic securities - total 633,060 184,639 140,325 514,935 464,277 1,564,825 669,890 6,141,319 305,911 42,395 State, county, and municipal bonds 1,492,689 87,324 31,095 211,422 68,935 59,184 101,539 33,958 434,167 36,330 75,435 Railroad bonds 114,657 63,625 25,568 28,302 13,816 3,412 144,381 13,209 582,685 22,274 76,655 430,861 39,885 53,469 Other public service cor)oration bonds 1,101,386 5,282 15,101 147,040 35,756 3.8,019 19,209 159,140 321,167 175,072 102,501 29,590 All other bonds 187,455 58,491 24,587 205,463 53,246 1,354,258 56,421 45,076 97,077 363,827 155,423 67,639 39,153 Stock of Federal reserve banks 11,435 5,022 4,781 3,011 16,791 5,680 19,928 4,252 4,270 167,297 11,870 64,496 15,717 Stock of other corporations 14,542 6,674 10,035 586,570 63,917 21,286 40,005 1,605 274,135 63,027 17,598 17,393 56,353 Collateral trust and other corp. notes 4,724 1,421 2,818 32,656 17,745 23,874 4,661 159,101 13,746 55,331 4,875 2,666 37,586 ' Municipal warrants 15,945 847 14,322 199,743 14,744 4,126 51,744 9,217 6,566 11,150 25,575 2,054 3,453 All other 26,64 2,871 65,150 3,178 3,898 2,89s 6,057 4,242 2,926 1,877 5,646 2,975 1,938 rein securities - total 146,1450 5,146 714,52s 76,928 11,064 65,319 77,808 17,117 265,006 78,273 23,307 25,721 18,755 Government bonds 26,413 36,254 2,888 137,934 34,889 7,868 5,986 30,665 360,745 41,824 12,407 13,054 10,523 , Other foreign securities 20,067 40,674 354,183 2,258 34,654 127,072 9,249 36,449 10,500 16,627 42,919 8,236 5,078 e 410 B-245 CONFIANTIAL Not for gublication EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS, JANUARY 1931 Federal Discounted bills Reserve Bank Month Earnings from U. S. Pursecuchased rities bills Janua7 Other sources Total Current expenses Exclusive Total of cost of F.R. Currency Current net earnings Ratio to paid-in Amount capital Available for reserves,surplus and franchise tax* Per cent 41/ $1,680 667,483 196,265 254,322 $160,371 520,952 159,305 207,630 $165,221 540,342 166,237 215,263 -$13,541 127 141 29,978 39,059 5,078 7,313 34,424 5,1)46 113,061 111,046 359,165 113,309 123,127 104,140 291,294 106,525 171,142 108,419 293,652 122,030 -58,081 2,627 65,513 -8,771 .6 3.8 61,961 56,815 68,000 93,253 1,202 24,065 1,247 5,634 85,333 147,453 95,627 187,493 73,972 139,159 102,119 189,104 75,397 147,283 102,471 224,016 9,936 170 -6,844 -36,523 3.8 .o5 337,428 1,355,698 408,063 1,408,081 1,117,796 1,490,818 121,952 470,895 192,154 2,482,237 3,211,(-10 4,841,410 2.187,698 2,168,033 2,239,108 2,331,573 2,380,671 2,399,160 150,664 831.062 2,442,250 $26,955 99,608 82,026 78,844 $27,518 100,465 6,129 33,837 $91,272 454,548 106,073 124,632 $5,935, 12,362 2,037 17,009 Richmond Atlanta Chicago St. Louis 66,606 66,600 76,5o4 33,982 12,133 19,362 58,333 11,956 29,244 17,771 189,904 62,225 Minneapolis Kansas City Dallas San Francisco 12,074 51,570 15,561 56,829 10,096 15,003 10,819 31,777 Boston New York Philadelphia Cleveland OJanunry TAL 1931 December 1930 January 1930 667,159 924,694 2,040,642 FEDERAL RESERVE BOARD DIVISION OF BANK OPERATIONS FEBRUARY 14, 1931 2.3 2.1 2.9 ••• 472,909 130,834 - 57,647 - 66,616 - 87,305 - 24,267 - 35,613 - 33,749 5,468 - 21,138 - 28,830 - '94,19z 1.0 -396,90 5.7 16.8 J.,587,504 *After making allowance for accrued dividends and current debits and credits to profit and loss account but not for profit or loss on sales of Ti. S. securities held in special investment account. VOLUME 211 PAGE 125 / Office Correspontnce FEDERAL RESERVE BOARD • Date_ Subject: Piscount January 17, 1931 retes in Yew York and London. Mr. Smead UFO You asked me the other da5, to give you a statement mmparing the Bank of England and the Federal Reserve Bank discount rates with market rates in London and New York. The Bank of England rate and the principal London market rates,as given in the monthly summary of statistics issued by the Bank of England, for the first eleven months of 1930 are as follows: Ba-nk Rate 1950 January February Mardh April May June July August September October November 5 **4i - 5 ***34 - 4 3i ****3 3 3 3 3 3 3 Treasury Bille (weekly Allot e Monthly_Ayerages Daibr Rates 3 Months I Loans for Short line* Bank Periods 4.051 3,715 2,492 2.496 4.06 3.gi 2.7s 2.50 2.112 2.297 2.381 2.174 2.053 2.111 2.16 2.31 2.38 2.22 2.06 2.09 2.19 2.173 *Brokers' buying rate **Reduced from 5 to.4 on February C. ***Reduced from 4ito 4 on Mardh 6, and to ****Reduced from to 3 on May 1. 3i 3.94 3.66 3.06 2.47 2.00 2.22 2.00 2.00 Day to Day Money 3.63 3.75 3.13 2.28 1.94 1.91 1.78 1.84 1.94 1.66 1.94 2.00 1.69 2.00 on Mardh 20. The Bank of England rate 1:: a rate at Which the bank announces its willingnes3 to discount 3 months find bamk bills and yov will note that the bank rate is always above the market rate cn such bills as Shown in column three of thc above table. In tha New York market, however, the Federal reserve bank's buying rate on 90 day prima bankers, acceptances never moves anpreciably above or below the maxket rate on such bills. In other words while the Bank of England rate is almost always above the market rate the New York bank's .2_ VOLUME 211 PAGE 152 • a - 2- bill rate is generally about the same as the market rate. The Federal reserve bankts discount rate ic nearly always above its buying rate on bills but it is its bill rate not its discount rate which is comparable with the Bank of England rate. At the present time the Federal reserve bank has a bill rate of 1-5/8 per cent for 15-day maturities and 1-3/4 per cent for 90-day maturities. The 1-3/4 per cent also applies to repurchase agreements. The market rate on 90-day bills is now 1-5/8 per cent. Open market rates in New York for the past year are shown on page 11 of the January Federal Reserve Bulletin.
@FedFRASER