The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
BOARD DF GOVERNORS
□ F THE
FEDERAL RESERVE SYSTEM
Date
Office Correspondence
To.
The Files
From
Mr, Coe
W P
August 6, 1911
Subject:.
c.
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 223 of Mr. Hamlin’s scrap book and placed in
the Board’s files:
VOLUME 223
Page 17
Earnings & Expenses of Federal Reserve Banks, December 1931.
Page £9
Preliminary memorandum for Ooen Market Policy Conference.
Page 75
^
.
Memo to Mr. Hamlin from Mr. McClelland attaching copy of re
port submitted by Open Market Policy Conference.
Pages .22, 93, 94, 95 and 96
Correspondence between Mr. Hamlin and President of First Na
tional Bank of Boston re Federal Reserve Policy.
Page. .97
Memo to Board from Mr. Sinead re Distribution of eligible
assets among member banks.
Page 109
Letter to Gov. Young from Ropes, Gray, Boyden and Perkins,
re the Atlantic National Bank of Boston.
Page 110
Letter to Senator Glass from Mr. Hamlin re proposed amendments
to the F.R. Act.
Page 130
Earnings & Expenses of F.R. Banks during January 1932.
Page 138
Letter to Senator Glass from Mr. Hamlin enclosing a proposed
substitute for Section 3 of the Glass Bill.
Page 141
Memo to Mr. Hamlin from Mr. Smead re Reserves required on Fed
eral Reserve notes under the Glass Bill.
Page 143
Memo to Mr. Hamlin from Mr. Smead re resources & liabilities of
F.R.Bk. of Boston.
Page I 47
Memo to Mr. Hamlin from Mr. Smead re Distribution of eligible
paper among member banks.
Page 148
•
Memo to Mr. Hamlin from Mr. Goldenweiser re Speculation in Se
curities and Commodities.
Page 151
Memo to Mr. Hamlin from Mr. Smead re Deficiencies in Average Reserves.
B-655
C O F F I D S N T I A L
Not for publication
*
earnings
Month
Federal
afd
expenses
of federal
of
D is
counted
bills
Bank
$ 133 ,6 0 1
1+87,255
3*+5,398
3oston
Few York
Philadelphia
Cleveland
325,666
Richmond
Atlanta
Chicago
St. Louis
132,529
148,366
254 ,4 17
78,057
Minneapolis
Kansas City
Dallas
Francisco *
23.869
Pur
chased
bills
U. S.
secur
ities
Other
sources
$87,OH9
1+S++.955
91,930
95,910
$13,230
195,335
27,520
24,044
22,881
3 8 ,61+9
38,038
118,060
23,089
25,031
195,341
1+5,969
18,894 " 3
Total
$311+. 073
1 ,3 9 1 ,1 3 3
Exclusive
of cost of
F.R.Currency
To tal
$ 161,235
51+3 ,7 7 1
Curren-t ne'; earning Current net earnings
Amount
Ratio to
paid-in
capital
177,599
263,650
12 0 ,315
110,859
296,706
85,144
2 71,6 10 • 104,203
622,968
294,224
18.3
160,751
326,262
3 6 .7
15F551
ioU.077
117,302
37.21+9
9 .3
80,194
135.131+
105,935
183,390
8 0 ,31+3
136,40 5
106,969
186,598
16 7,110
206,530
n,4oo
205,1+59
119,576
6 0 ,175
5 5 ,1 5 0
7 .*+36
4,201
99,898
173,073
1++.1+87
68,124
27,915
53,223
2 l+,796
4,948
8 9 ,170
51+, 265
131.36 9
420,616
2 ,291,667
1 ,922,067
689,379
879.311+
482,501
i+.751,6 2 3
4,108,483
924,694
408,063
1 ,288,076
9 75 .76 7
1,408,081
*+70,895
562,991
Amount
Ratio to
paid-in
capital
Per cent
-Si47,86l
13.8
908,109
15.8
728,430
21.9
2 1.0
4i4,24l
216,189
487,034
1+79,839
$ 1 76 ,1 3 5
January - December 1931
$ 137,9 38
828,142
309.1+35
5 2 .931+
31,621
1931
19B1
Current expenses
$ 7^ .19 3
223,587
22,186
3*+.2l9
88,741
5.8,7H
209,057
b a m s , De c e m b e r
December
Eaxnings from
Reserve
reserve
21.3
- 10 2 ,5 77
Per cent
_
1.4
4.3
2.7
\ -
180,059
619,200
- 162,293
3.4
3.2
19,555
7.8
17,6 6 2
.6
36,668
1 0 .3
6.9
21+.3
-109 ,19 s
-1+3,897
35 8 ,71+0
.—
24,4oo
234,018
Net earnings,
after payment
of dividends
—$Sl+9,369
-2,359,518
-120,664
-8 5 7 .96 s
-497,006
-313,247
-560,738
-350;672
3.1
-134,650
-439,10 7
-142,896
-1+31,859
1 .6
1+.7
-7,057,694
-2,280,4l6
TOTAL
Dec. 1931
Fov. 1931
Dec. 1930
3 3 1 ,3 3 5
2,288,411 2,463,212
2 ,207,796 1 ,900,687
2,3?0,S71
831,062
2 ,205,379
2 ,109,160
3,211,733 2,188,033
Jan.-Dec. I9 3 I 9,820,546 5,009,541 12,428,297 2,442,895 29 ,70 1,2 79 2 5 ,5 6 1 .51 s
193010,672,215 6 ,0 8 1,18 7 17,273,331 2,397,311 36.U2U.01+U 26 ,167,196
27,040,664 2 ,660,615
.28 ,342,726 8 ,0 8 1,318
18.0
l4.i
5.7
1 .6
^.7
2 ,660,615
8 ,0 8 1,31 8
DIVISION OF B A M OPERATIONS
JANUARY 27, I932.
/•/
b
;
/
/
VOLUME 223
PAGE 17
7
/l*
January 8, 1932.
CONFIDENTIAL
PRELIMINARY MEMORANDUM FOR:
THE OPEN MARKET POLICY CONFERENCE JANUARY 11, 1952,
The last meeting of•the Open Market Policy Conference on November
30 was concerned chiefly with meeting the holiday currency and year-end demands
on member banks. The year-end period passed quietly and it was only found
necessary to use a small part of the authority for purchases of government
securities arranged at that meeting.
This was due to the fact that there was
not the usual concentration of year-end demands on the New York money market,
apparently due to the inability of banks outside New York to withdraw funds from
New York in the usual volume to meet their requirements. After purchases of
50 million dollars of government securities had been made (partly in Chicago)
it appeared probable that further requirements could be met by the member banks
borrowing moderate amounts from the Reserve bank over the year-end. Moderate
temporary purchases of governments from member banks were made by several Reserve
banks for their own account.
* With the year-end requirements disposed of, attention may now be
directed to the longer term policy to be followed by the System. The events eft
the past few months may be reviewed briefly as follows:
Business activity and employment have declined further.
Commodity prices have reached new low levels since the pre-war
period.
Security prices have reached new low levels, though high grade
corporation bond prices have shown some recovery,
.
•
Currency hoarding was much diminished in November and early
December although during the past two weeks there have been
some indications of an unseasonable demand for currency due to
bank disturbances.
The heavy gold outflow of the early autumn has been followed
by a renewed inflow, so that the monetary gold stock of the
United States is now only about £135,000,000 smaller than a
year ago.
VOLUME 223
PAGE 59
'
2
failures diminished considerably during November but
have snown a renewed increase during the past few weeks.
Bonk
Bank credit has shown an almost continuous decline of
substantial proportions.
This last item constitutes the most serious element in the present
credit situation.
It has become apparent that, since the heavy withdrawals from
the banks of funds of domestic and foreign depositors in the early autumn, the
practices followed by the banks have resulted in the progressive reduction of
bank credit and a progressive decline in the market value of benk assets. This
has as its basis the urgent desire of all banks under present conditions to
maintain as high a degree of liqaidity as possible.
The unusual withdrawals of funds from the banks in the early autumn
led many banks to attempt to strengthen their individual positions by calling in
or reducing loans or by selling securities. For the individual bank this pro
cedure is successful, for the time being at least, in easing its position, but
it has the effect of taking deposits from other banks and of putting pressure on
the security or commodity markets.
The other banks that lose deposits as the
result of these operations, consider it necessary, in their turn, to reduce their
loans or investments to strengthen their position, and the burden is simply
passed along to other institutions and the process repeated. Thus there has
developed a progressive reduction of earning assets for the banks as a whole,
which instead of restoring the bank position has worsened it because it has caused
a continuous anc extraordimrilyrapid decline in deposits.
In the past three months the loans of weekly reporting member banks
have been reduced more than $1,000,000,000, and their investments $500,000,000.
These reductions in earning assets, far from restoring the position of' these
banks, have augmented the reduction in deposits due in the first place to with
drawals of funds by domestic and foreign depositors, so that the total deposits
of these banks have declined $2,250,000,000 during the three months.
3
The sale of more than $500*000,000 of securities within a few weeks
by the weekly reporting member banks alone, has had the inevitable effect of
accelerating the decline in bond prices. Under present conditions of excessive
caution, the security markets have not their usual absorptive powers, so that
any liquidation of investment holdings has unusually violent effects on secur
ity prices,
Within a period of a few months United States Government bonds
have declined 10 per cent; high grade corporation bonds liave declined 20 per
cent; and lower grade bonds have shown even larger price declines. Declines
of such proportions inevitably have increased greatly the difficulties of many
banks, and it has now become apparent that the efforts of individual institutions
to strengthen their position have seriously weakened the banking position in
general*
As market values of securities have declined and markets have been dis
organized not only have new issues or refunding issues become impossible, but
the credit of various borrowers including various municipalities, has become
impaired so that bank credit has become unavailable to many.
This situation
«■*
has been reflected in the discontinuance of many business projects, further
decline in business activity and commodity prices. This situation is not
curing itself but tends to grow progressively worse unless positive steps ere
taken to change the trend.
%
Federal Fenorva. Bank
of How York
Report* Dopartnont
J A N
8
, 1932 .
B I L L I O N S
2 4 r-
L O A N S
&
R E P O R T I N G
I N V E S T M E N T S
M E M B E R
B A N
B O N O
PRICE!
100
B O N D
P R I C E S
N U M B E R
5 0 0
B A N K
S U S P E N S I O N S
1 9 3 0
1 9 3 1
Fo rm No. 18X
"V r-
1
O ffic e
To__
C o rre sp o n d e n c e
Hamlin
FEDERAL RESERVE
BOARD
Subject:
From
•M
3— M M
There is attached hereto, for your information in advance of
consideration at an early meeting of the Doard, copy of the report
submitted by the Open Iferket Policy Conference following its meeting
T'
on January 11-12, 1932#
VOLUME 223
CONFIDENTIAL
The Conference has considered the preliminary memorandum and discussed
at length the current business and banking situation*
It gave particular
attention to the increase in bank failures and the pressure upon the businesr
and price structure of the country resulting from or coincident with the hu«3
deflation in bank credit during the past year, the contraction of bank loans
and investments during the last quarter of 1931 being at the rate of about
25$ per annum. The Conference believes that this deflation cannot continue
without most serious damage to the business and financial structure of the
country, While the Conference is of the opinion that the proposed Recon
struction Finance Corporation will be of material help in checking the
failure of sound banks and-^ ihus tending to relax further unnecessary
pressure for liquidation and that while the further acquisition of bills by
the Federal reserve banks may be encouraged by Federal reserve bank rate
J®0\
adjustments, nevertheless because of the seriousness of the^general situation
and the importance of relieving the drastic pressure on the ,gredit structure
•>
now inspired largely by fear ofk further liquidation, the System should be
prepared, if necessary, to supplement these other steps by the purchase of
Government securities* It, therefore, resolves that the Executive Committee
f
be authorized if and when desirable to purchase for System account not to
exceed $200,000,000 of Government securities, such purchases to be made only
after the approval of the Executive Committee at a meeting to be called for
the purpose of considering the occasion or need therefor.
January 12, 1932
Th e
First N ational B a n k of B o s t o n
B
o s t o n
.M
a s s a c h u s e t t s
Philip S tockton
P r e s id e n t
>
January 15, 1932
Honorable Charles S. Hamlin
Federal Reserve Board
Washington, D. C.
Dear Mr* Hamlin:
I have received your letter of January 13th in reply to mine
of the 11th and feel that you somewhat misunderstood my point of view*
v
It did not occur to me*that the result of my suggestion would
be an increase of Federal Reserve notes outstanding.
Rather, my sug
gestion was to counteract the evil effects of a further demand on the
part of the public to have Federal Reserve notes.
In other words, I am
not expecting the procedure to increase the demand on the part of the
'
banks for the notes but rather if the demand for the notes should arise
the action outlined would lessen the harmful effects.
If the Reserve Board lessened reserves at the present time
the immediate result would be a payment of rediscounts by the use of the
excess reserves created.
The suggestion was not intended to force excess reserves into
the market nor to force Federal Reserve notes into circulation.
It was
merely intended to offset the harm done by excess withdrawals of currency
on the part of the public and by the sudden return of these withdrawals.
I am not attempting to say whether or not it would be wise
VOLUME 223
PAGE 92
T h e 1 -m sT N a t i o n a l B a n i ^
Honorable C.S.Hamlin
' B oston
1 -1 5 -3 2
-2 -
for the Reserve Board to reduce the bank reserves at the present time, but
I feel it would be wise for them to have some weapon to counteract possible
further large withdrawals of currency on the part of the public.
Yours very truly.*
President
*
mis W ^ m S m
•S'— '
#
ueajr
Lr»
Utos^tow
-
*-*.
■,. "
r. "
I f I understand yo*xr note in r“e piy to n in e , your pro o r ^
ould nalDB
* It p
:*o ssib le f
tiie Federal
*tvi w
rosi
userv:i bank
Oovemaent
us5cn r it im .
it ttcau:
be ©pfltfoxiuhtely the sa ie ao praeoiit seou rity purc'i&res by C
th ) Halqapa rooerr© bsjii3
in the o?ea suirfcet; ? Hier© would be th is
w iff ^renao* ho r
to tin g procedure too in i t i a t lv
rsats .vith the r<
h ile i»d o r y<ra* pink. i t *mOd
,^u@
f
t sure th at i t w & A be iA *o t<
the Sfdher banks tho pojfor
indebted* ;©oe
ortfoiio.
ftMiiN* the v o iia e o f th e ir oah
;id i lo o the? ;,orj iOsittor? o f tho Fedor. 3. yvfj rvo btnkc*
•.
-•
. ■':•■; . • •
... ..-
; •;.' •
3vinfc th ie over, ^nd l e t lie taiefT hoir you fr;<^L wtout i t .
•;
V *
.
Very eineoraiy yours*
'**• r liilip ctecjitnn, Pro?id*-itt,
Hie P ir * t HatiomO, Jfcaak o f Heaton,
Bo . ton, ilao •
VOLUME 2 2 3
PAGE 93
T h e
Fir s t
Na tio n a l
B a n k
o f
B o s t o n
Bo s t o n . Massachusetts
January
Twenty-second
1 9
3 2
Hon.C. S. Hamlin
Federal Reserve Board
Washington, D. C.
Dear Mr, Hamlin:
I have thought over your letter of January 21. As I
see it, under my plan the initiative does not rest with the member
banks.
The initiative rests with the Federal Reserve Board, who,
when they feel circumstances require it, would permit member banks
to substitute Government bonds for their reserves and this would
presumably be automatically done by all member banks as they naturally
would prefer earning assets to non-earning assets. The difference
between the effect of this measure compared with the present security
purchases is that the present security purchases expand the assets of
the Reserve Bank and lower their ratio, thereby weakening their system.
Under my method the liabilities of the Reserve system would be reduced,
thereby improving their ratio.
What I wish to point out particularly is that this
method would furnish currency without affecting the Reserve ratio
in times of great emergency and that when the emergency was over and
the currency returned the danger of violent inflation would be l e s s * ^
by forcing the member banks to take up these bonds and once again place
non-earning deposits in the Reserve Bank. It is a power given the
Reserve Board beyond that which they now have by market purchases. I
would agree entirely that the power they have in making open market pur
chases is all that is necessary for normal times. I do feel, however,
that they should have some power beyond this to combat the danger that
I can see from extraordinary and excessive hoarding.
Sincerely yours,
VOLUME 223
PAGE 94.
Februaiy 2 t 1932
ar ;-r* Stockton*
I have
eawtfnjjly
&-> -our le tte r o f January 22nd.
X think i t
Is true that your method rould «**» i t possible to give the ocnhor
hank. Booe earning aseofartHthOu* lo u rin g the * * , « *
Ihe necessity -or doing that. - that i s , a s h o r t y of
novor yet been a v ita l c * o i
reserve ratio
ha8
:.on to the Federal :.e « rve System,
nd in ease i t Mould beoooo necessary, the Board has tho poror to
8 .spend tho re err. banks- reserve re m a n e n ts.
Jhnr proposal, in
e ffe c t, vould authorise the Federal Reserve Board to reduce member
recerve requlraaento. by po»«lttin« that to invest a part o f
W
the, in hov eminent securities.
I ao inclined to think that this
provision -o ld do no great iiarts. nor, eo far as I can 390. :ny
great good.
to constant
I t W ild , hooewr, subject the Federal Ron rve Board
pressure frm , number bunla. anting' to have th e ir rnnuirs-
its reduced*
Sincerely yours,
^r»
M l ip Stockton, ; ref?! .jit
•Bie Firs'; rational Bank of Boston,
Boo ton, ..ass.
VOLUME 2 23
PAGE 9 $
T h e Fi r s t N a t i o n a l
B
o s t o n
, M
13a n k o f B o s t o n
a s s a c h u s e t t s
Philip Stockton
Pr e s id e n t
February 4, 1932
Honorable Charles S. HarJLin
Federal Reserve Board
Washington, D. C.
Dear Mr. Hamlin:
Thank you for your letter.
I wish
I could agree with it, but at any rate my suggestion
has received considerat.ion, which is all I could
expect.
elyvyours,
S J o -c A i’
President
VOLUME 2 2 3
PAGE 9 6
B-660
F e b ru a ry 8, I9 3 2 .
To:
Mr, Smead
From:
Mr, Horbett
SUBJECT: D i s t r i b u t i o n o f ''E l i g i b l e A s s e t s "
among i n d i v i d u a l member b a n k s .
T h e re a re s u b m itte d h e re w it h t a b u la t io n s show ing th e d i s t r i b u t i o n
o f " e l i g i b l e p a p e r ” and o f " e l i g i b l e a s s e t s " among s e v e r a l g ro u p s o f member
barL^s as o f Septem ber 29» 1931.
member bank lo a n s e l i g i b l e
" E l i g i b l e p a p e r" re p re s e n t s th e amount o f
f o r r e d is c o u n t w ith F e d e ra l r e s e r v e b an ks, and
e l i g i b l e a s s e t s " the amount o f such e l i g i b l e p a p e r p lu s U n ite d S ta te s
Governm ent s e c u r it i e s (e x c e p t s e c u r it i e s p le d g e d a g a in s t n a t io n a l bank n ote
c i r c u l a t i o n ) h e ld b y member b a n k s .
E l i g i b l e a s s e ts o n Septem ber 29, 1931, amounted to $ 7 ,9 0 0 ,0 0 0 ,0 0 0 ,
o f w h ich $ 3 ,0 0 0 ,0 0 0 ,0 0 0 was lo a n s e l i g i b l e
Governm ent s e c u r i t i e s .
f o r r e d is c o u n t and $ U ,900,000,000
In June 1926, the e a r l i e s t d a te f o r w hich c o rre s p o n d
in g d a ta a re a v a ila b le , member banks h e ld $ 8 ,0 0 0 ,0 0 0 ,0 0 0 o f e l i g i b l e
a s s e ts ,
o f w h ich $ U ,900,000,000 was i n th e form o f e l i g i b l e p a p e r and $3 ,1 0 0 ,0 0 0 ,0 0 0
in Governm ent s e c u r i t i e s .
The maximum amount o f e l i g i b l e a s s e ts r e p o r t e d f o r
any o f the c a l l d a te s f o r w hich such f i g u r e s a re a v a ila b le was $ 8 ,2 0 0 ,0 0 0 ,0 0 0
i n Jun e 1928.
~rom an e x a m in a tio n o f the d a ta s u b m itte d h e re w ith i t a p p ea rs t h a t ,
a lth o u g h member banks in the a g g re g a te had e l i g i b l e a s s e ts much i n e xcess o f
any p ro b a b le re q u ire m e n ts , 91 o f them r e p o r t e d no such a s s e ts on Septem ber
29 l a s t , and 1,567 member b a n k s, o r 20.6 p e r c e n t o f the t o t a l number, had
le s s than $10 o f e l i g i b l e a s s e ts p e r $100 o f t o t a l lo a n s and in v e s tm e n ts .
T h e re were 617 member b a n k s, h o w e ve r, w it h e l i g i b l e a s s e ts o f $50 o r more p e r
$100 o f lo a n s and in v e s tm e n ts , and 1,260 w ith e l i g i b l e
p e r $100 o f lo a n s and in v e s tm e n ts .
a s s e ts o f $U0 o r more
A p p ro x im a te ly h a l f o f the banks h e ld
le s s than $20 o f e l i g i b l e a s s e t s , a v a ila b le as the b a s is f o r b o rro w in g s a t
#
- 2F e d e ra l r e s e rv e b a n k s, f o r each $100 o f t h e i r lo a n s and in v e s tm e n ts .
The d i s t r i b u t i o n o f member banks on Septem ber 29, 1931, a c c o rd in g to
the r a t i o o f e l i g i b l e a s s e ts to lo a n s and in v e s tm e n ts , was n o t s u b s t a n t ia ll y
d i f f e r e n t fro m th e c o rre s p o n d in g d i s t r i b u t i o n a t the end o f December 1929, as
may be seen from the f o llo w in g t a b le :
S e p t. 29, 1931
Number o f P erce n ta g e
o f b anlis
banks
T o t a l, a l l member banks
Banks w ith no e l i g i b l e a s s e ts
Banks w it h f o llo w in g amount o f
e l i g i b l e a s s e ts p e r $100 o f
lo a n s and in v e s tm e n ts :
U nder $10
$10 - $20
$20 - $30
$30 - tko
$Ho - $50
$50 and o v e r
D ec. 31, 1929 ....
Number o f P e rc e n ta g e
banks
o f banks
7,599
100.0
g *522
100.0
91
1 .2
99
1 .2
1 ,7 ^9
2,065
1,529
1,219
SU6
1,015
20.5
2U.2
18.0
1U.3
9*9
n .9
1,567
2 ,H 5
1,563
1,003
6H3
617
20.6
27 JS
20.6
13*2
8 .5
g .l
T h a t th e re were no la r g e banks among the 91 th a t h ad no e l i g i b l e
a s s e ts i s e vid e n c e d b y the f a c t th a t t h e i r a g g re g a te lo a n s and in v e s tm e n ts
were o n ly $50*000*000*
The 3,682 banks th a t re p o r t e d e l i g i b l e a s s e ts o f le s s
th a n $20 p e r $100 o f lo a n s and in v e s tm e n ts had a t o t a l o f $ 1 ,7 6 1 ,0 0 0 ,0 0 0 o f
such e l i g i b l e a s s e t s , as compared w it h a g g re g a te lo a n s and in v e s tm e n ts o f
$ 1 3 ,U6U ,000,000.
T h e ir b o rro w in g s fro m F e d e ra l re s e r v e banks amounted to
$176,000,000, o r 10 p e r cent o f the amount th a t th e y c o u ld have b o rro w e d on
the b a s is o f t h e i r e l i g i b l e a s s e t s .
The f o llo w in g ta b le shows lo a n s and i n
v e s tm e n ts , e l i g i b l e a s s e ts , and b o rro w in g s o f each group o f member b anks:
<
- 3 -
September 29, 1931
December 31. 1929**
Loans
B
o
rro
w
in
g
s
Loans
E lig ib le
E lig ib le
and
fro
m
and
a s s e ts
a s s e ts
in ve s tm e n ts
F .R . banks in v e s tm e n ts
T o t a l , a l l member banks
Banks w ith no e l i g i b l e
a s s e ts
33.073
50
Banks w ith f o llo w in g amounts
o f e l i g i b l e a s s e ts p e r $100
o f lo a n s and in v e s tm e n ts :
U nder $10
3.526
$10 - $20
9,93S
$20 - $30
S,S9U
$30 - $1+0
7.6U3
$40 - $50
2,083
$50 and. o ve r
939
7 ,93^
323
-
-
222
1,539
2,159
2.56s
906
5I+0
36
1U0
SO
36
15
16
35,922
7.637
101
5.5S2
12,952
10,71+7
1+.31+1
l.5**3
656
-
363
2,013
2,73S
1.U62
667
395
-------------------------- u v
1
\JX ^ X X ^ X U i C
and. in v e s tm e n ts i s n o t a v a ila b le f o r December 31, 1929.
A t a b u la t io n o f member bank b o rro w in g s fro m F e d e ra l r e s e r v e banks on
September 29, 1931» d is c lo s e d tn a t 5*159 o n t o f th e t o t a l o f 7»599 member banks
were n o t b o rro w in g from the F e d e ra l re s e r v e b a n k s, and th a t 1,257 were b o rro w in g
le s s than 30 p e r c e n t o f the amount o f t h e ir e l i g i b l e a s s e t s . T h e re were 2S
b a n k s, h ow e ve r,
th a t were b o rro w in g fro m F e d e ra l r e s e r v e banks amounts e q u a l to
t n e i r e l i g i b l e a s s e t s , 3^ were b o rro w in g from 90
to 99 p e r cen t o f t h e i r e l i g i
b le a s s e ts , and 167 were b o rro w in g fro m 70 to 90 p e r cen t o f such e l i g i b l e a s s e t s .
A d i s t r i b u t i o n o f member banks a c c o rd in g to r a t i o o f b o rro w in g s to e l i g i b l e
a s s e ts i s g iv e n i n the ta b le b e lo w :
D ISTRIBU TION OF MEMBER BANKS ACCORDING- TO RATIO OF BORROWINGS FROM FEDERAL
RESERVE BANKS TO E L IG IB L E ASSETS, OF SEPTEMBER 29, 1931.
•
1
Number o f banks r e p o r t in g
e l i g i b l e a s s e ts
Banks w ith le s s
Banks w it h $20 o r
th an $20 e l i g i b l e more e l i g i b l e a s
*So’t a l a s s e ts p e r $100
s e ts p e r $100 o f
o f lo a n s and i n
lo a n s and
ve stm en ts
in ve s tm e n ts
A l l member banks w it h e l i g i b l e a s s e ts
Banks b o rro w in g
,f
"
11
M
M
n
M
u
"
"
100$
over
over
over
over
over
7,508
o f e l i g i b l e a s s e ts
90$ o f ”
n
70$ 11 11
,f
50$ " H
"
30$ » n
•»
10$ » '»
»
T o t a l b o rro w in g banks
28
6U
231
567
|2,1+40
i
N o n -b o rro w in g banks ( e x c lu s iv e o f 91
w ith o u t e l i g i b l e a s s e t s )
3.326
3.632
26
52
160
3I+8
650
1,062
1,131
1,309
2,551
2,517
ih e avera ge amount o f e l i g i b l e a s s e ts p e r $100 o f lo a n s and in v e s tm e n ts f o r
member banks as a whole was a p p ro x im a te ly $2*+.00 on Septem ber 29, I 9 3 I , as com
p a re d w ith an a ve ra g e o f a p p ro x im a te ly $21.00 i n December 1929.
re fle c ts p r in c ip a lly
T h is in c re a s e
two f a c t o r s , one the re d u c t io n i n t o t a l lo a n s and in v e s t
m ents, and the o tn e r the s u b s t n a t ia l r i s e in h o ld in g s o f U . S . Governm ent s e c u r i
t i e s , w hich more than o f f s e t the re d u c t io n i n lo a n s e l i g i b l e f o r r e d is c o u n t .
in d ic a t e d i n the f o ll o w in g t a b le ,
th e re was r e l a t i v e l y l i t t l e
As
change d u r in g t h is
p e r io d in the a vera ge amount o f e l i g i b l e a s s e ts p e r $100 o f lo a n s and in v e s tm e n ts
h e ld b y c o u n try b a n k s .
A t c e n t r a l r e s e r v e c i t y and r e s e rv e c i t y b anks , h ow ever,
p a r t i c u l a r l y those in New Y o rk C i t y , t h e a ve ra g e amount ro s e c o n s id e r a b ly , as a
r e s u l t o f the r a p id g ro w th i n Governm ent s e c u r it y h o ld in g s .
-
5
-
September 29, 1931
E lig ib le
a
s
s
e ts p e r $100
Humber
o f lo a n s
of
and in v e s tm e n ts
banks
December 31, 1929
E l i g i b l e a s s e ts
p e r $100 o f
Humber
lo a n s and
of
in
v e s tm e n ts
banks
T o t a l , a l l member banks
7,599
$23.99
3,522
$21.26
C e n t ra l re s e r v e c i t y b a n k s:
Hew Y o r k C i t y
Chicago
O th e r re s e r v e c i t y banks
C o u n try banks
U2
12
366
7,179
30.25
2 ^.8 3
24. S3
I S . 6S
56
17
U5S
7,991
24.53
20.02
21.S3
I S . 76
Member b a rk b o rro w iig s fro m F e d e ra l r e s e r v e banks on September 29 l a s t
a ve ra g e d a p p ro x im a te ly $1 p e r
$100 o f t l i e i r lo a n s and in v e s tm e n ts , and a p p ro x
im a t e ly SH.00 p e r $100 o f t h e i r e l i g i b l e
a s s e ts .
I n o th e r iro rd s , such b o rro w in g
re p re s e n t e d ab out U p e r c e n t o f th e amount th a t th e y c o u ld have b o rro w e d on the
b a s is o f t h e i r e l i g i b l e a s s e t s , and ab out 1 p e r c e n t o f the t o t a l amount o f member
bank c r e d i t o u t s t a n d in g .
These r a t i o s were much lo w e r l a s t September th a n in
December 1929 in the case o f c e n t r a l r e s e r v e c i t y and r e s e r v e c i t y b a n k s, and
somewhat lo w e r i n the case o f c o u n try banks as may be seen from the ta b le b e lo w .
Septem ber 29, 1931
B o rro w in g s a t
B o rro w in g s
a t E .R . bank E .R . bank p e r
$100 o f e l i
p e r $100 o f
g ib le a s s e ts
lo a n s and
in v e s tm e n ts
T o t a l , a l l member banks
C e n t ra l r e s e r v e c i t y b a n k s:
Hew Y o rk
C hicago
O th e r r e s e r v e c i t y banks
C o u n try b a rk s
December 31, 1929
B o rro w in g s a t
B o rro w in g s
a t E .R .b a n k E .R .b a n k p e r
$100 o f
p e r $100 o f
e lig ib le
lo a n s and
a s s e ts
in v e s tm e n ts
$o.9S
$U.0S
$1.30
$3.49
0 .l6
0.0U
1.03
1.63
0.52
0.17
4 .1 5
2.73
1.29
2.05
2.01
5.27
10.23
9.25
10.21
In c o n n e c tio n w ith the above ta b le i t
1.91
s h o u ld be noted, a g a in t h a t member
bank b o rro w in g s ro s e s h a r p ly i n the l a s t q u a r t e r o f 1931» nn^ w ien the December
31, 1931» c a l l r e p o r t d a ta become a v a i l a b l e ,
th e y w i l l ,
o f c o u rs e , d is c lo s e
a s u b s t a n t ia l r i s e i n th e amount o f b o rro w in g s as r e la t e d to lo a n s and in v e s t
m ents and to e l i g i b l e a s s e t s .
From th e d i s t r i b u t i o n o f member banks a c c o rd in g to s iz e (u s in g lo a n s
and in v e s tm e n ts as a measure o f s i z e ) , i t i s fo u n d t h a t i f
ed
in t o
two g ro u p s —
the banks a re d i v i d
th ose w it h lo a n s and in v e s tm e n ts u n d e r $1,000,000 and
th o se w it h lo a n s and in v e s tm e n ts o f $1,000,000 and o v e r —
the a ve ra g e amount
o f e l i g i b l e a s s e ts p e r £100 o f lo a n s and in v e s tm e n ts i s ab out the same f o r
b o th g ro u p s .
in t o
T h e re i s a marked d if f e r e n c e , h ow e ve r, when th e banks a re d iv id e d
s m a lle r s iz e g ro u p s .
Banks o f th e s m a lle s t s iz e show r e l a t i v e l y the
la r g e s t p r o p o r t io n o f lo a n s and in v e s tm e n ts a v a ila b le as the b a s is o f b o rro w
in g ;
those i n th e m id d le s iz e g ro u p s show r e l a t i v e l y th e s m a lle s t p r o p o r t io n o f
such e l i g i b l e a s s e t s ; w h ile th e 90 la r g e s t banks r e p o r t e d a r e l a t i v e l y h ig h
r a t i o o f such e l i g i b l e a s s e t s .
The f ig u r e s f o r each s iz e g roup a re shown i n
the .ta b le b e lo w .
Septem ber 29, 1931
E lig ib le
a s s e ts p e r
Number
of
£100 o f lo a n s
and in v e s tm e n ts
banks
T o t a l,
a l l member banks
Decembe>r 31, 1929
.
E l i g i b l e a s s e ts
Number
p e r $100 o f
of
lo a n s and
banks
in ve s tm e n ts
7,599
$23.99
8,522
$21.26
U nder $1,000,000
$1,000,000 and o v e r
4,539
3,060
23.99
23.99
4,908
3,614
28.16
20.79
U nder $200,000
$200,000 to £500,000
$500,000 to $1,000,000
$1,000,000 to $5,000,000
$5,000,000 to $10,000,000
$10,000,000 to £50,000,000
$50,000,000 and o v e r
S54
1.9^7
1.73S
2,322
37.2
276
90
3U.9O
27.2S
21.17
I S . 11
I S . 72
21.24
27.17
7S5
2,136
1,987
2,767
415
341
91
39.52
32.15
25.24
I S . 39
18.10
18.55
22.88
Banks w it h lo a n s
and in ve s tm e n ts —
B o rro w in g s o f the s m a lle s t "banks l a s t Septem ber were r e l a t i v e l y h ig h
i n r e l a t i o n to t h e i r lo a n s and in ve s tm e n ts and t h e i r e l i g i b l e
a s s e ts .
For
exam ple, i n the case o f the member banks th a t had lo a n s and in v e s tm e n ts un d er
$ 1 ,0 0 0 ,0 0 0 , t h e i r b o rro w in g s fro m F e d e ra l re s e r v e banks were a p p ro x im a te ly $2.50
p e r $100 o f lo a n s and in v e s tm e n ts and $10.50 p e r $100 o f e l i g i b l e
i n the case o f banks w it h
a s s e ts , w h ile
lo a n s and in ve s tm e n ts o f $1,000,000 and o v e r , b o rro w
in g s a ve ra g e d So c e n ts p e r $100 o f lo a n s and in v e s tm e n ts and $3.67 p e r $100 o f
e lig ib le
a s s e ts .
These d a ta f o r each s iz e g roup o f banks a re g iv e n i n the f o l
lo w in g t a b le , b u t h e re a g a in i t
s h o u ld be remembered th a t on Septem ber 29 b o rro w
in g s o f member banks amounted to o n ly $323*000,000, w hereas th e y now amount to
$855,000,000.
Septem ber 29, 1931
B o rro w in g s a t F .R .b a n k B o rro w in g s a t F .R . bank
p e r $100 o f lo a n s and p e r $100 o f e l i g i b l e
in v e s tm e n ts
a s s e ts
T o t a l , a l l member banks
$0.98
$4.08
U nder $1,000,000
$1,000,000 and o v e r
2.51
. 88
10. U7
3.67
Under $200,000
$200,000 to $500,000
$500,000 to $1,000,000
$1,000,000 to $5,000,000
$5,$00,000 to $10,000,000
$10,000,000 to $50,000,000
$50,000,000 and o v e r
5.29
2.oU
2.06
1.4-3
l. S S
1.33
.HU
15.17
10. Uo
9.75
8 „l6
9.9H
6.26
1.61
Banks w it h lo a n s and in v e s tm e n ts
1T0TE:
T h is d i s t r i b u t i o n i s n o t a v a ila b le f o r December 31* 1929.
T h e re a re c o n s id e ra b le d if f e r e n c e s betw een member banks in the
v a r io u s d i s t r i c t s in the r e l a t i o n o f e l i g i b l e a s s e ts to lo a n s and in v e s tm e n ts ,
and i n the r e l a t i o n o f b o rro w in g s to lo a n s and in v e s tm e n ts and to e l i g i b l e
a s s e ts .
F ig u re s f o r each d i s t r i c t a re g iv e n i n th e two f o ll o w in g summary t a b le s ,
and more f u l l y
in the appended t a b u la t io n s :
— o —
am ount of
e l ig ib l e
assets
per
l o a n s a fd in v e s t m e n t s
$100
Septem ber 29, 1931
E lig ib le
Numb e r
a s s e ts p e r
of
$100 o f lo a n s
and
banks
in ve s tm e n ts
F e d e ra l
R ese rve
D is t r ic t
T o t a l, a l l member banl:s
7,539
$23-99
December 31* 1929
E lig ib le
a s s e ts p e r
Number
$100 o f lo a n s
of
and
banks
in v e s tm e n ts
$2 1 .2 6
2 ,5 2 2
B o sto n
New Y o rk
P h ila d e lp h ia
C le v e la n d
323
S76
7 U0
69G
20.49
2 6 .4 l
I S . S3
2 0 .9 0
4o4
931
764
lo .U S
2 1 .5 0
lb . 22
795
17.37
Richmond
A t la n t a
Chi cago
S t . L o u is
44s
3^3
960
500
21. SS
25.93
2 1 . 6s
23.92
514
42G
1,1S6
571
2 0 .9 0
24. SO
19.12
21. UO
M in n e a p o lis
Kansas C i t y
D a lla s
San F ra n c is c o
537
rUU
645
5U5
31.S3
33.99
31.
2 1 . US
SG3
293
746
607
3 1 .5 ^
3^.59
35.22
23.53
BORROWINGS AT FEDERAL RESERVE BANK PEN $100 OF LOANS AND INVESTMENTS
AND PEP $100 OF E L IG IB L E ASSETS
F e d e ra l
R eserve
D is t r ic t
Septem ber 29, 1931
B o rro w in g s a t B o rro w in g s
a t F .R . bank
F . R . bank
p e r $100 o f
p e r $100 o f
lo a n s and
e lig ib le
a s s e ts
in v e s tm e n ts
December 31-* 1329
B o rro w in g s
B o rro w in g s a t
a t F .R .b a n k
F .R . bank
p
e r $100 o f
p e r $100 o f
e lig ib le
lo a n s and
a s s e ts
in v e s tm e n ts
J0.9S
$4 .OS
$1.60
liQ
«?o.49
B o sto n
New Y o rk
P h ila d e lp h ia
C le v e la n d
0.1*9
0 .5 3
1.67
1.32
2.40
2 .0 0
9.93
5 .3 1
1.56
1.39
2.46
2.26
9.39
e .u 7
16 . 1S
13.11
Richmond
A t la n t a
Chicago
S t . L o u is
2.23
2.S4
0.39
1.19
10.19
10.9U
l.SO
3.05
2.60
2.29
4.97
1.35
1U.40
10.94
11.99
6 .2 9
M in n e a p o lis
Kansas C it y
D a lla .s
San Francisco
0.U6
1.3U
1.61
1 .^3
1 .4 4
1.10
2 . 4s
T o t a l , a l l member banks
3 .9 3
R .ll
O . Co
1.39
1.22
3.59
7.25
4 .0 4
5.20
-
9
-
When the December 31* 193-1 ca ll report figures become available, they
w ill, of course, show a substantial increase in the ratio of borrowings to loans
and investments and to elig ib le assets, as borrowings more than doubled during
the la st quarter of the year.
In addition to the foregoing da.ta, a ll of which are based on "eligible
a s se ts ," i . e . , elig ib le paper plus Government se c u ritie s, detailed tabulations
have been made based on the ra tio of elig ib le paper to to ta l loans of member
banks.
From these tabulations i t was found that on September 29 la s t, 9-2U member
bonks held no elig ib le paper whatever, and that 1 ,^ 8 5 had less than *10 of such
oaper per *100 of to ta l loans.
This d istrib u tio n , in comparison with a corres
ponding d istrib u tio n for 1929 , is shown in the following summary table, and more
detailed figures by classes of banks,by size groups, and by Federal reserve d is
tr ic t s , are contained in the appended tabulations.
Sentember 29, 1931
Fumb er
Percen
of
tage of
banks
banks
Total, a ll member banks
Banks with no e lig ib le paper
Banks with following amounts of
elig ib le paper per A100 of
to ta l loans:
Under *10
*10 - *20
$20 - *30
*30 - $1*0
*Ho - *50
$50 and over
December 31, 1929
Fumber Percen
of
tage of
banks
banks
7,599
100 .0
S,522
10 0.0
U2U
5 .6
32U
3 .8
1.U85
19.6
1,571
1 ,3 *
9SU
769
20.7
17.1
12.7
1 0 .1
1,082
1,702
1,371
1,071
923
10 .8
lU .2
1,578
I8 .5
1,553
18.2
20.0
16.1
12,6
Table 1 - DISTRIBUTION OF NUMBER OE MEMBER BANKS ACCORDING TO RATIO OE BORROWINGS FROM FEDERAL RESERVE BANKS TO ELIGIBLE ASSETS
B-660a
0 ta l,
banks
the
oup
Banks not
borrowing
from F. R.
bank
^September 29, 1931
Number of banks with the following ra t
from F. R. banks to elig ib le assets
Less than
10 -30 $ 30 -50 $ 50 - 70$ 70 -90$ 90-99?
10$
1
984
1
3
cu
1—
Total, a ll member banks.....................
7.999
5,159
42
31
12
366
10
-
251
7.179
4 .8 6 7
24
248
4.539
3.060
3 ,06 c
2,099
323
290
582
U 32
616
336
167
36
i°0$
28
DISTRIBUTION BY CLASS OF BANK
n tra l reserve city banks:
New York City.......................
Chicago....................................
Other reserve city banks ...
Country banks.............................
m
4
2
1
1
47
28
-
-
10
4
933
584
324
162
592
39S
382
218
118
102
65
6
36
32
34
18
18
15
1
2
3^
27
DISTRIBUTION BY LOANS AND INVESTI CENTS(SIZE OF BANK)
Under $ 1 ,0 0 0 ,0 0 0 ...................................................... ......................
$ 1 , 000,000 and over.....................................................................
1U 2
131
234
23
13
20
8
47
22
l4i
117
58
84
462
lU
37
46
15
96
65
26
71
50
29
47
4o
16
io4
71
46
57
3^
31
2
24
9
17
15
26
10
10
2
1
^3
l4
17
3
1
Richmond...
A tlanta....
Chicago......
S t. Louis
448
251
363
960
900
190
715
323
17
38
23
Minneapolis....
Kansas City....
Dallas.....-........San Francisco.
597
844
6U 5
5 U5
U 78
10
612
23
ll
13
4ll
U 13
4l
4o
104
65
91
54
71
24
20
3
20
2
7
6
4
5
3
vji-P'roru
876
7 U0
698
huj h
Boston............
New York.........
Philadelphia
i've land......
u
DISTRIBUTION BY FEDERAL RESERVE DISTRICTS
Table 2 - NUMBER, LOUTS AND INVESTMENTS, ELIGIBLE ASSETS*, AND BORROWINGS OE MEMBER BANKS ON SEPTEMBER 29, 1931
3-^660
Page 1
Total
(a ll
banks in
grouo)
ALL MEMBER E*NT'S
0
-----------------------------------
Number of banks
Percentage of banks
Loans and investments
(M illions
Eligible assets*
Borrowings from F. R. banks
Other borrowings
7,599
100
of dollars)
do
do
do
E ligible assets per $100 of loans and investments
'Borrowings a t F.R.banks per $100 of loans & investments
Borrowings a t F.R.banks per $100 of e lig ib le assets*
j o
.
33,073
7,934
323
Banks
Banks with following amounts of elig ib le assets per $100
with no
_of loans and investments
elig ib le
and
$ 20-$30
$30-$4o $4o-$50 $50
assets Under $10 $10-$20
over
91
1 .2
50
1U2
1
$23 .99
o.qg
4.os
-
1,567
20 .6
2 ,1 1 5
27. s
1,563
20.6
13.2
3 ,5 2 6
9 ,9 3 s
222
1,539
8,294
2,159
SO
7,6^3
2,568
36
2,023
$33.60
0 .U7
$43.1*8
0 .7 4
1 .7 1
36
39
$6 .3 0
1.03
1 6 .3 4
i4o
4s
$15.49
i.4i
9 .0 7
34
$24.28
0 .9 0
3 .7 0
1,003
16
1
M
643
617
3.1
S.5
906
15
2
939
54o
16
2
$57.51
' *Represents the to ta l of ( l ) paper e lig ib le fo r rediscount a t Federal reserve banks, and (2) United States Government se cu rities,
other than se cu ritie s pledged against national bank note circu latio n
1 .6 7
2.90
Page
Total
(a ll
banks in
__group)
DISTRIBUTI°1'T BY CLASS OF BARK
2
-660
B
Banlcs
Banks with following amounts of elig ib le assets per $100
with no
of loans and investments ■ ■
elig ible
$10-$20
$20-$30
$30-$Uo $4 o-$5 o $500 V 0and
assets Under $10
-p
Central Reserve City Banks in Hew York Citv
Humber of banks
Percentage of banks
^feans and investments
E ligible assets*
Borrowings from F. R. banks
Other borrowings
^2
100 .0
(m illions of d o llars)
do
do
do
E ligible assets per $100 of loans and investments
Borrowings at
F.R.banks per $100 of loans and investments
Borrowings at F.R.banks per $100 of e lig ib le assets*
8,253
2,^96
13
1 1 .9
k
10
9 .5
2 3 .8
1^5
2 .^ 5
555
5
19
^.769
1,581
1
3
$22.68
$3 3 .1 5
0.03
5
100
7
23
1
23
(a)
$30.25
$ 7 .3 5
(a)
—
0.52
10.19
$ 1 5 .6 1
0 .0 7
0.4U
12
10 0 .0
2
1 6 .7
2 5 .0
3
2 5 .0
208
36
1 , 2^
308
0 .1 6
0 .7 5
0 .1 9
0 .86
lk
33.*+
0.09
5
n .9
k
9 .5
20
11
77 ^
320
2
$^ 1 .3 5
0 .2 2
0 .5 4
k
$5‘t.5 1+
20.22
3 7 .0 7
Central Reserve City Banks in Chicago
Humber of banks
Percentage of banks
JjCp-ns and investments
^p ig ib le assets*
Borrowings from F. R. backs
Other borrowings
(M illions of dollars)
do
do
do
•eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans & investments
borrowings at F.R. banks per $100 of e lig ib le assets*
(a)
Less
than
$500,000.
l P 6 k k
U09
1
(a)
$ 2^.88
0 . 0U
0 .1 7
3
5
1
(a)
(a)
$9.13
0.73
7 .9 1*
M
3
2 5 .0
182
k
62
1
2
-
-
—
-
-
$2 ^ .7 5
$3 ^ .3 1
M
-
—
-
-
1
8 .3
0 .3 6
1.0 6
-
$1+1. 7U
-
-
_
-
Page 3
Total
(all
banks in
DISTRIBUTION BY CLASS OF BAKI
group)
b- 66o
Banks
Banks with following amounts of elig ib le assets per $100
with no
of loans and investments
$50 and
elig ib le Under $10
$
10-$20
$3o-$4o
$
20-$30
$Uo-$50
over
assets
Other reserve city banks
Number of banks
•centage of banks
Loans and investments
Eligible assets*
Borrowings from F. R. banks
Other borrowings
366
100.0
(M illions of d o llars)
1 1,372
2,82k
do
do
do
2
0 .5
Eligible assets per $100 of loans and investments
Borrowings at F.R. banlzs per $100 of loans & investments
Borrowings at F.R. banks per $100 of eligible assets*
$24.83
1.0 3
*+.15
489
34
129
88
3 5 .2
2 4 .0
2,732
(a)
9
5,118
823
64
29
—
$ 6.86
i . 6o
23.33
$ 16 .0 8
1 .25
7.78
$25.19
1 ,5 2 2
2 1 .2
1,979
27.6
2,932
181
28
31
4,468
76
19
42
$6 . l 6
0 .9 4
15.32
$14.72
-
5
117
51
38
io .4
8
-
688
33
4
54
l 4 .8
1,541
535
9
9
$34.74
0 .5 8
28
7.7
851
27
7.4
635
383
36l
-
-
1
2
1 .6 6
$45.01
0 .25
0 .55
$56.87
0 .1 5
0 .2 7
1,462
932
609
20 .3
1 3 .0
8 .5
586
8 .2
2,473
^53
10
1,150
389
25
4
$24.60
$33.81
$44.26
2.57
5.80
1 .2 2
4 .8 5
Country banks
Number of banks
Percentage of banks
ns and investments
(M illions
gible assets*
Borrowings from F. R. banks
Other borrowings
•
7,179
of dollars)
do
do
do
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. ba.nks per $100 of eligible assets*
89
100.0
1 .2
11,805
2 ,2 0 5
193
44
-
68
1
$18.68
—
-
1 .6 3
8.73
(a) Less than $500,000.
658
1.6 9
11.50
609
1.6 9
6.86
2 .2 0
6 .4 9
201
12
2
284
l 6S
11
2
$59.15
3 .7 ^
6 .3 2
Page H
Total
(a ll
banks in
DISTRIBUTION BY LOANS AND INVESTMENTS
(SIZE OF bait:)
group)
Banks
with no
elig ib le
assets
-660
Banks wil;h following amounts of e lig ib le assets per
of loans and investments
Under $10 $ 1 0 -$ 2 0
$20-$30
$30-$Ho
$Uo-$50
B
$100
$50 and
over
Under $200,000
Number of banks
|o re outage of ban1:s
Loans and investments
( Hi]
Eligible assets*
Sorrowings from F. R. banks
Other borrowings
85 H
100.0
of dollars)
do
do
do
investments
loans & investments
elig ib le assets*
120
H2
6
2
$3^.90
5.29
15.17
15
1 .6
72
S.H
106
1 2 .H
156
1 8 .3
2
11
-
1
16
2
23
6
1
(a)
—
-
(a)
(a)
(a)
(a)
$ 6 .3 7
1 .5 2
2 3 .8 5
$ 1 5 .0 0
1 .7 7
1 1 .7 7
160
1H3
1 6 .7
202
2 3 .7
23
8
19
26
1
17
2
(a)
1
(a)
(a)
$ 3 5 .0 5
5 . S3
1 6 . 6H
$HH.2 0
6 .2 0
1H.0H
$ 6 2 .H2
2 2 .3
325
1 6 .7
239
1 2 .3
235
1 2 .1
1U8
ill
37
H
1
33
77
3 1*
3
7*+
H5
$ 2 5 .5 3
H .73
I S . 52
I S .7
b
S .7 3
1 3 .9 9
$200,000 to $ 500,000
Number of banns
Percentage of banks
%
ans and investments
(M illions
igible assets*
Borrowings from F, R. banks
Other borrowings
of dollars)
do
do
do
2 .0
281
lH .H
393
2 0 .2
663
13
100
-
5
1
1
1H0
21
2
2
181
-
19
6
E ligible assets per $100 of loans and investments
Borrowings a t F. R. banks per $100 of loans & investment:
Borrowings a t F.R. banks per $100 of elig ib le assets*
Ho
1.9^7
100.0
(d)
$27.2S
'2,0-!10.Uo
(a) Less then $500,
—
—
000.
$ 5 .^ 3
0 .6 3
1 1 .6 s
1 .6 7
1 1 .3 5
H3H
5
1
(a)
(a)
$2H .S8
3 .0 2
$ 3 ^ .5 6
H .30
$HH.82
H .21
$ 6 0 .7 8
H .52
1 2 .1 2
1 2 .^ 5
9 .3 9
3
7
M
Page 5
(M illions of d o llars)
do
do
do
E ligible assets per $100 of loans and investments
Borrowings at F.R.
banks per $100 of loans & investments
Borrowings at F.R.
banks per $100 of elig ib le assets*
28
100.0
1 .6
1,247
19
-
264
26
11
( a )
—
-
$21.17
2.06
9.7 5
Banks with following amounts of e lig ib le assets per $100
of loans and investments
$50 and Under $10 $10 - $20
$30 -$ 4 o $ 4 o - $50
over
0
ro
-€/>
l
Loans and. investments
E ligible assets*
Borrowings from F.R. banks
Other borrowings
1,732
Banks
with no
e lig ib le
ansets
0
0500,000 to $ 1 , 000,000
Number of banks
^Bcentage of banks
To tal
(a ll
banks in
group)
C\J
-C.O-
DISTRIBUTION BY LOANS AM) INVESTMENTS
(SIZE OF BAM)
B-660
408
23.5
508
29 .2
365
2 1 .0
209
1 2 .0
298
367
54
7
4
263
65
147
51
5
$14.70
1.7S
S2U.59
12.09
10.02
444
19.1
917
18
2
3
$ 5 .9 1
0.66
1 1 .1 6
6
2
2.46
1
$
3^.35
3 . 6s
1 0 .7 1
124
7 .2
86
96
5.5
67
3S
3
(a)
39
$44.02
3.39
$ 58.60
7.6 9
2
1
3.6 5
6 .2 3
$ 1 , 000,000 to $ 5 , 000,000
Number of banks
Percentage of banks
^ b s and investments
E ligible assets*
Borrowings from F. R. banks
Other borrowings
(M illions of d o llars)
do
do
.
do
E ligible assets per $100 of loans and investments
Borrowings at F.R.
banks per $100 of loans
investments
Borrowings at F.R.
banks per $100 of e lig ib le assets*
&
2,322
100.0
8
0 .3
28.7
818
35.3
U,93g
16
(a)
1,409
1,800
894
86
13
17
265
11
3
$ 6 .1 1
$14.69
0 .9 1
1.6 2
$24.48
1.73
7
3
$18.11
_
1 .4s
-
8 .1 6
(a) Less than $500,000
665
1^.93
29
11.01
225
16
7.0 6
225
103
9 .7
U..U
59
2.5
469
160
8
2
205
122
89
4
1
71
3
(a)
$ 3 ^ .0 5
$^ 3 .^ 1
2.18
5.01
$57^70
2.42
4.20
1 .6 5
M3
Page
6
-660
B
DISTRIBUTION BY LOANS AMD INVESTMENTS
(SIZE OF BANK)
■ $■ 5,000.000 to $ 1 0 . 000.000
iber of banks
entage of "banks
Loans and investments
E ligible assets*
Borrowings from F. R.banks
Other borrowings
Total
Banks
(a ll
with no
banks in elig ib le
groin
assets
372
(M illions of d o llars)
do
do
do
E ligible assets per $100of loans and investments
Borrowings a t F.R. banks per $100 of loans & investments
Borrowings at F.R. banks per $100 of elig ib le assets*
Banks with following amounts of e lig ib le assets per $100
_______ of loans and investments
$50 and
$20-$30
$30 -$ 1*0
$l*0-$50
over
89
100.0
2 3 .9
2,558
595
L ^ ls and investments
(M illions
E ligible assets*
Borrowings from F. R. banks
Other borrowings
E ligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans & investments
Borrowings a t F.R. banks p er $100 of elig ib le assets*
31*
9 .1
502
125
8
1
230
$24.85
$31+.^7
13
7
5
$12.72
$6 .7 0
$ii*.66
1*23
1 .7 6
l*g
i.s6
3.3^
1*0
18.37
11.99
1.60
6 . 1*2
79
6
2
11
3 .0
69
30
12
3 .2
82
1*6
2
5
-
-
7.89
$ 1*1*. 32
3.51
7.92
$56.30
5 .6l
9 .9 6
25
9 .0
5.s
2 .7 2
•
276
100.0
of d o llars)
do
do
do
71
19 .1
1,081
159
19
5
1*79
$10,0 0 0 .0 0 0 to $50.000.000
.Ikunber of banks
Percentage of banks
155
^ 1 .7
5,^56
1,159
73
23
$21.21*
1 .3 3
6.26
1*8
107
1 7 .^
3 8 .8
853
51*
' 2,072
309
38
8
6
$6 .3 2
0 . 9U
1 U.92
10
$1^.90
1.8 6
1 2 . 1*6
70
2 5 .1*
1,^*9
35^
16
1*
$ 2 i+.l*l
1.13
^.63
596
202
8
1*
$33.89
1 . 1*1
I*.l6
16
287
131
10
3 .6
199
1
110
_
-
-
5 ^ 5 .5 5
$55.17
0.96
_
0.4U
Page
DISTRIBUTI
BY LCANS A7D IN7ESTMS**TS
(SIZE CP BANE)
Tota l
3anks
(a ll
with no
banks in eligible
assets
gro^-P)
7
b -66 o
Banks with follow:Lng amounts of elig ib le assets per $100
of loans and investments
Under $10 $ 10-$20
$ 20-$30
$3 o-$^o $Uo-$5o $50 and
over
$50.000,000 and over
Number of banks
ercentage of banks
#Eligible
oans and investments
assets*
Borrowings from E. E. banks
Other borrowings
90
(M illions of dollars)
do
do
do
E ligible assets per $100 of loans and investments
Borrowings at E. B. banks per $100 of loans & investments
Borrowings a t E. B. banks per $100 of elig ib le assets*
k
—
100.0
- .
—
IS, 091
U,oi6
79
53
$27.17
oM
1.61
-
-
262
19
5
7
$7.11
2.03
2 S.60
2S
3 1 .1
2 5 .6
25
2 7 .8
7
7 .8
3
3 .3
U,U62
730
5,592
1,3^9
6 ,0 6 7
2,031
36S
as
2
1,3*K>
575
23
IS
aa
$16.37
0 .9 9
6.03
$ a ^ .ia
0 .U9
a . 05
212
7
-
_
-
$33. ^-7
0 . 0U
$U2.SS
$ 5 7 .7 5
0 .1 2
—
Page
Total
(all
"banks in
-group)
DISTRIBUTISM BY FEDERAL RESERVE DISTRICTS
S
Banks
with no
eligible
assets
B-6b0
Banks with following amounts of eligible assets per $100
of loans and investments
I$50 and
Under $10
$10-$20
$20-$30
$30-$i*o { $i*o-$5o
over
Boston District
Number of banks
Percentage of "banks
3S3
100.0
ns and investments
(Millions of dollars)
Eligible assets*
do
Borrowings from F. R. banks
do
Other borrowings
do
2,^32
U9S
12
13
Eligible assets per $100 of loans and investments
Borrowings at F.R. bamcs per $100 of loans and investments
.Borrowings at F.R. banks per $100 of eligible assets*
l**7
38.1*
68
1 7 .7
20
5.2
33
2
1
816
126
6
10
869
239
2
2
198
63
1
(a)
—
$6 .9 5
0 .50
7.2 2
$1 9 .^ 7
0 .7 1
^ .56
$2 7.5 5
0.25
0.89
8J6
k
100.0
0.5
230
2 S .2
356
U0 .6
6Ug
$20.^9
O.U9
2.U0
3
0 .8
131
3 ^ .2
k
k-jk
—
—
11
2 .9
3
0.8
53
(a)
(a)
17
13
1
(a)
$32.00
0 .3 1
0.98
$UU>8
0.93
2 .1 0
$72.73
3.31
1+.51*
17^
19.9
78
8.9
2,b
5
2,065
319
27
6
3 ,0 72
709
15
20
**,911*
1 ,6 3 1
8
1+
787
326
2
(a)
(a)
$6.U6
0.b8
10.59
$1 5 .1*7
1.31
8 .5 0
$23.08
0.50
2 .16
$33.18
0 .1 6
O.Us
$Ui.Uo
0.26
0.62
$55.2i*
15.90
28.79
.
2b
New York District
Number of banks
Percentage of banks
ifts and investments
(Millions of dollars)
Eligible assets*
do
Borrowings from F. R. banks
do
Other borrowings
do
11,515
3,oHi
6l
35
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
(a)
Less
$2 6 .Hi
0.53
2 .0 0
than
$500,
2
—
—
~
—
bz
b
21
13
1.5
26
15
b
Page 9
D I S T R I B U T I 'F B Y
FEDERAL
RESERVE DISTRICTS
B-bbO
Total
Banks
Banjos with following amounts of eligible assets per $100
with no
(all
of loans and investments
banks in eligible
and
$20-$30
$3o-$Ho
$Uo-$5o $50over
group)
assets Under $10 $10-$20
Philad.el-phia District
Lumber of banks
Percentage of banks
7^0
100.0
15
2.0
Dt^^s and investments
(Millions of dollars)
Eligible assets*
do
borrowings from F. R. banks
do
Other borrowings
do
2,7^0
516
51
21
(a)
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
$18.83
—
1.27
9.93
-
6
304
kl.l
719
^3
8
8
$5.92
1.12
is.74
250
116
33.8
15.7
809
682
158
25
118
16
k
$1 4 .6 3
1.92
13.13
2
3^
4.6
13
8
1.7
1.1
U05
106
l4
8
lkk
2
7
(a)
(a)
$23.17
$3 5 .6 3
$4l.88
3.66
0.39
0.34
15. si
1.10
0.81
12
1
(a)
$58.53
5.24
S .9 6
Cleveland District
Srumber of banks
percentage of banks
and investments
(Millions
Eligible assets*
Borrowings from F. R. banks
Other borrowings
698
1 0 0 .0
of dollars)
do
do
do
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
3 ,2 0 3
669
25
$20.90
1 .3 2
6 .3 1
21
30 U
3.0
43.6
8
539
30
7
9
(a)
—
-
$5.61
1.21
21.60
(a) Less than $500,000.
217
31.1
91
13.0
U6
6.6
1,517
Wk
109
175
207
21
9
13
2
$1 3 .6 6
1.39
10.18
7
1.7
1 .0
6
235
105
(a)
285
156
(a)
2
(a)
$24.52
$3 5 .3 6
1.96
3.24
9.17
$4 4 .6 3
0.09
8.00
62
0.21
$5 4 .9 0
(a)
(a)
Page
Total
(all
banks in
group)
DISTRIBUTION BY FEDERAL RESERVE DISTRICTS
10
B-660
Banks
Banks with following amounts of eligible assets per $100
with no
of loans and ]investments
eligible Under $10
$1 0 - § 2 0
$2 0 -$ 3 0
$30-$4o
$1w -$ 5 0 $ 5 0 and
assets
over
Richmond District
Number of banks
^^centage of banks
Loans and investments
Eligible assets*
Borrowings from F. R. banks
Other borrowings
448
(Millions of dollars)
do
do
do
1 0 0 .0
7
1.5
S3
19.0
1,137
2^9
25
4
(a)
216
-
$7.76
3.15
10
Eligible assets per $100 of loazis and investments
$2 1 .8 6
Borrowings at J. R. banks per $100 of loans and investments
2.23
Borrowings at F. R. banks per $100 of eligible assets*
10.19
17
7
6
4o.6o
139
3 1 .0
37S
57
106
23.7
211
54
56
12.5
33
7.4
264
89
4
38
17
22
4.9
26
6
2
1
1
(a)
l4
l
(a)
$15.12
1.65
10.93
$2 5 .7 9
2.93
11.34
$33.88
1.33
3.91
$43.95
5*o4
11.46
$54.72
2.67
4.83
6
2
Atlanta District
Number of banks
Percentage of banks
estments
Eligible assets*
Borrowings from F. R. banks
Other borrowings
(Millions of dollars)
do
do
do
0 .6
960
2 U9
27
7
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks por $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
2
363
1 0 0 .0
(a)
Less
(a)
—
$25.93
2.84
1 0 .9 ^
than
$500,000.
—
-
•
21
5.8
2 2 .6
119
7
246
39
82
91
25.1
251
59
6
2
12
3
3
1
$5.64
$15.78
4.89
30.99
$23.57
2.22
1.94
34.33
9M
65
47
55
15.1
17.9
1 2 .9
131
44
3
(a)
160
70
3
(a)
(a)
$33.73
1.96
5.81
$43.58
2.04
4.68
$5 8 .1 6
2.83
4.87
52
30
1
Page
Total
(all
banks in
group)
DISTRIBUTION BY FEDERAL RESERVE DISTRICTS
11
Banks
with no
eligible
assets
5-660
Banks with following amounts of eligible assets per $100
of loans and investments
$50 and
Under $10 $10-$20
$20-$30
$3o-$Uo j $Uo-$5o
over
Chicago District
060
100.0
5
0.5
1 U7
15.3
300
31.2
U. 23 3
919
17
11
2
-
360
21
3
6
1 .4 33
238
8
3
1,977
$21.68
0.33
1.80
$5.87
0.87
lU.82
$16.62
0.56
3.39
$24.30
—
—
500
1 0 0 .0
11
2 .2
117
2 3 .4
143
28.6
1 ,1 0 9
265
13
6
5
(a)
198
13
2
1
$23.92
1 .1 9
4.97
—
$6 .71
1.03
15.38
Number of banks
^pcentage of banks
Loans and investments
(Millions
Eligible assets*
Borrowings from F. R. banks
Other borrowings
of dollars)
do
do
do
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
_
226
2 3 .5
13k
lU.O
8U
8.8
6U
6.7
9U
327
112
2
(a)
1
(a)
uu
25
(a)
(a)
$34.22
0 .4 9
1 .^ 3
$43.92
0.63
1.U2
$56.95
0.66
1.15
128
25.6
Us
9.8
30
6.0
22
4 .4
366
58
6
3
271
70
3
1
57
19
1
1
191
92
(a)
(a)
21
13
1
(a)
$15.77
1 .6 s
1 0 .6 7
$25.87
$33.87
2 .4 7
7.29
$Us.i6
0.06
0 .1 2
$ 60.33
3 .0 U
5.o4
ksi
3
1
O.lk
0 .6 0
kl
St. Louis District
Number of banks
Percentage of banks
and investments
(Millions
Engible assets*
Borrowings from F.H~. banks
Other borrowings
of dollars)
do
do
do
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
(a)
Less
than
-
—
$500,000.
1.0k
k.01
Page
12
B
Total
(all
banks in
group)
Banks
with no
eligible
assets
-660
Banns witn following amounts of eligible assets per $100
of loans and nvestments
Under $10
$10-$20
$20-$30
$3o-$4o
$^-$50 !$5° ^
over
Minneapolis District
Number of banks
^^centage of banks
Loans and investments
Eligible assets*
Borrowings from F.R. banks
Other borrowings
597
7
100.0
76
1.2
(Millions of dollars)
do
do
do
821
261
U
1
jijligiblo assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investment!
Borrowings at F.P.. banks per $100 of eligible assets*
(a)
12.7
126
2 1 .1
138
23.1
70
13^
156
5
21
1
(a)
(a)
$31.83
0.
U6
0 .2 6
1.
kk
U.o4
$6.52
ko
1
(a)
(a)
$15.60
0.38
2 .*U
112
79
18. S
1 3 .2
299
ki
10U
1
20
1
(a)
(a)
$25.93
0.53
2.05
$3^.82
0.3*+
0 .9 s
$*+3.l^
1.82
ISO
172
20. k
km
2j
$65.29
0.35
0.53
Kansas City District
Number of banks
Percentage of banks
?ns and investments
Eligible assets*
Borrowings from F. P.. banks
Other borrowings
skk
(Milli ons of dollars)
do
do
do
2k
105
12.4
lk
20
1
(a)
1
211
30
1
183
46
3
—
(a)
$ 3 3 .9 9
$6 . 3 7
1.3^
0 .2 9
3 .9 3
k.kz
$l4.2S
0.69
4.S2
0 .5
i,o6U
362
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
4
2.9
1 0 0 .0
(a ) L ess
th a n $ 5 0 0 ,0 0 0 .
2 0 .5
1S6
22.0
254
s4
3
151
66
135
(a)
(a)
(a)
(a)
$24.88
1.38
5.56
$32.91
1.15
3.49
$43.50
$55.86
1.37
2.^5
2 1 .3
173
2^3
3
2 .6 1
6 .0 1
Page
“I S T R I B U T I B Y FEDERAL RESERVE DISTRICTS
Total
(all
banks in
13
3-6b0
Banks
Banks with following amounts of eligible assets per $100
with no
of loans and 3investments
eligible
and
Under $10
$10-$20 $20-$30
$30-$40
$4o~$50 $50
assets
s.
over
Dallas District
6U5
Number of 'orbits
Percentage of banks
Loans and investments
(Millions
Eligible assets*
Borrowings from F. R. banks
Other borrowings
of dollars)
do
do
do
Eligible assets per $100 of loans and investments
Borrowings at P.R. banks per $100 of loans and investments
Borrowings a.t P.R. banks per $100 of eligible assets*
100.0
1
0.2
4.6
io.4
776
244
12
4
(a)
—
47
3
(a)
(a)
126
$31.^
1.6l
—
-
$7.19
0.07
1.00
$1 5 .1 8
1.09
7.15
$25.28
1.64
6 .U9
183
122
22.4
5.11
30
67
19
1
(a)
123
1 9 .1
178
U5
3
1
l66
25.7
101
1 5 .7
$3 5 .0 9
1 .5 1
4 .3 0
so
SI
37
47
1
3
(a)
1
$45.11
1.67
3.71
$5 9 .4 9
3.51
263
92
4
1
157
24.3
•
5 .9 1
San Francisco District
Number of banks
Percentage of banks
f t e s and investments
Eligible assets*
Borrowings from F.R. banks
Other borrowings
(Millions of dollars)
do
do
do
Eligible assets per $100 of loans and investments
Borrowings at F.R. banks per $100 of loans and investments
Borrowings at F.R. banks per $100 of eligible assets*
5U5
100.0
11
2.0
3,077
661
44
7
(a)
7
(a)
$21.46
1.43
6.6s
-
$5 .9 1
0.27
( a ) L e s s th a n $ 5 0 0 ,0 0 0 .
S
98
1S.0
117
1
4.64
3 3 .6
1,836
305
3^
3
600
149
$1 6 .64
1.87
11.25
$2 ^ .7 6
5
3
o.s4
3.40
71
1 3 .0
354
123
3
(a)
$3 4 . 7 0
0.99
2.85
39
7.2
21
3.8
139
64
(a)
(a)
(a)
$46.27
$53.97
23
12
1
0 .2 2
2 .6 5
o.4s
4.91
X
Table 3 - NUMBER, LOANS, AND ELIGIBLE PAPER OF MEMBER'BANKS ON SEPTEMBER 29, I93 I
B-660b
Page 1
Total
(all banks
in group)
Banks
with no
eligible
paper
Banks with following amounts of eligible paper per $100
of total loans
$ 50 and over
Under $10 j $10-$20 j $20-$30 j $30 -$Uo j $4 o -$50
ALL MEMBER BANKS
W
Number of banks
•
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
Eligible paper per $100 of total loans
1,082
1 2 .7
769
1 0 .1
3 ,0 0 3
70 s
899
306
U53
192
529
325
$23.58
$3*1.03
$*13.71
$6 l.k2
7
3
7.2
k2k
5.6
1.U65
19 .6
1,571
20.7
1,30*1
1 7 .1
256
2,997
-
7,955
^33
7,772
1,027
$1 *1.36
-
$5 .UU
$1 3 .2 1
7,599
100 .0
20 ,
964
lk .2
DISTRIBUTION BY CLASS OF BANK
Central reserve city banks in New York
Number of banks
Percentage of barks
T^ial loans
^^gible paper
(Millions of dollars)
do
Eligible paper per $100 of total loans
Central reserve city banks in Chicago
Number of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
Eligible paper per $100 of total loans
k2
1 0 0 .0
—
-
5 .2 2 0
706
-
$1 3 .5 2
-
12
11
lk
26.2
33.3
1 6 .7
671
35
3,510
U27
i,ooU
225
11
U
$5 .2 5
$12.18
$2 2 .U 0
$3 7 .1 3
k
-
3
3
10 0 .0
2 5 .0
2 5.0
33.3
1,129
k
73S
53
375
kk
-
$7 .1 5
$ 1 1.6 1
-
10 1
-
$8.97
-
—
8
17
k
11
$*17.87
1
1
2.3
8 .U
2
1
10
$3 2 .Uo
k
9.5
3
7.1
k
$U2 .7 >+
$6 2 .5 7
—
-
Page
Total
(all banks
!•»>
2
B-660b
group)
Banks
with no
eligible
paper
Under $10
dumber of banks
Percentage of banks
366
100.0
12
3.3
107
29.2
109
29 .s
77
2 1 .0
33
9.0
13
3.6
15
U.l
Total loans
Eligible paper
(Millions of dollars)
do
7 .3 2 5
980
37
-
3 .S62
202
1,725
253
1,075
257
322
108
121
50
184
109
Eligible paper per $100 of total loans
$ 1 3 .3 7
-
*5.2 6
$14.68
$2 3.9 3
$3 3 .^ 7
$41.62
$59 .Uo
1,444
2 0 .1
1,2 2 0
17.0
927
12.9
752
1 0 .5
1,063
14.8
Banks with following amounts of eligible paper per $100
of total loans
$10 - $20
$20 - $30
$30
- $4o
$4o -
$50
$50 and
over
DISTRIBUTION BY CLASS OF BANK
Reserve City Banks
Country banks
Number of banks
Percentage of banks
7 .1 7 9
100.0
U09
5.7
1.36U
19.0
Total loans
Eligible paper
(Millions of dollars)
do
7.19 9
1,210
215
-
2,684
143
2,168
303
925
226
565
194
314
i4o
328
205
^JjLigible paper per $100 of total loans
$16.81
$5 .3 1
$1 3 .9 9
$24.44
$34.29
$4 4 .4 5
$62.50
45
5.3
6s
8 .0
120
14.0
123
14.4
154
18.0
308
3 6 .1
86
36
5
(a)
7
1
12
3
12
4
16
7
31
21
$42.31
$7.U2
$2 5 .0 7
$35.20
$4 4 .6 2
$65.56
DISTRIBUTION BY LOANS AND INVEST? !ENTS
(SIZE OF BANK)
Under $200,000
Number of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
Eligible paper per $100 of total loans
854
100.0
36
4.2
(a) Less than $500* (
$1 5 .
Page
Total
(aJLl banks
in
group)
Banks
with no
eligible
paper
3
B-660b
Banks with following amounts of eligible paper per $100
_______
of total loans
Under $10
$10 - $20
$20 - $30
$30 - $Uo
$1+0 - $50
and
over
$50
DISTRIBUTION BY LOAFS AND INVESTMENTS
(SIZE OF BANK)
$200,000 to $500.000
iber of banks
frcentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
Eligible paper per $100 of total loans
$500.000 to $1,000,000
Number of banks
Percentage of banks
1,947
1 0 0 .0
125
6.4
I67
8.6
262
13.5
3l+0
17.5
32l+
16.6
277
1 I+.2
1+52
2 3 .2
1+26
23
36
2
59
9
78
19
73
25
60
27
98
62
$5 .9 2
'$15.0 6
$25.12
$3 4 .7 4
$1+1+.1+7
$6 3.9 3
285
l6 .1+
36 s
2 1.2
337
19.3
2I+9
1^.3
I83
1 0 .6
195
1 1 .2
-
121
7
157
2l+
1 I+9
36
113
39
80
36
81
50
ii+5
*33.92
-
1.738
121
1 0 0 .0
7.0
(Millions of dollars)
do
7^3
191
1+2
Eligible paper per $100 of total loans
*25.75
-
5 5 .6 U
$1 5 .0 1
$2l+.30
$3 4 .7 0
$44.7 G
$6 1 .8 3
2 ,3 2 2
1 0 0 .0
131 +
5.8
680
29.3
637
2 7 .u
39 s
1 7 .1
216
9.3
ll+3
b.2
K9
2 ,8 9 7
139
-
898
1+6
85 I+
12 l+
1+61+
113
262
90
157
69
123
76
$2l+.2S
$31+.1+8
$1+1+.ol+
$6 1 .5 2
Total loans
Eligible paper
$1,000,000 to $5.000,000
Number of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
Eligible paper per $100 of total loans
517
$17-81+
_
*5 .0 7
$14.46
lll+
B-660b
Page 4
Banks
with no
eligible
paper
Total
1 1 banks
group)
Total loans
El igibl e pap er
(Millions of dollars)
do
Eligible paper per $100 of loans
$10 ,0 0 0 ,000 to $50,000,000
Number of "banks
Percentage of "banks
Total loans
Eligible paper
(Millions of dollars)
do
Eligible paper per $100 of loans
OOP , 000 and over
Number of "banks
Percentage of "banks
$20 - $30
$30 - $4o
$Ho - $50
$50 and
over
3.0
42
3^
15
48
29
$23.83
$3^ .0 0
$45.20
$60.42
39
l4.i
20
7.2
3
l.l
—
482
69
224
54
123
244
654
35
$15.*0
$5.te
$14.27
10 0 .0
1 .1
ux.i
1 ,5 8 0
15
153
11
8
2 .1
54
14.5
4
30
8 .1
27$
1 0 0 .0
*
1 .5 ;
H5
41.7
95
3,530
35
468
1,571
88
1,146
l64
130
214
72
30
13
*•
$1 3 .2 6
$5.62
$iU .32
$2^.35
$3 3 .7 6
$44j6
-
90
29
3 2 .2
16
17.8
2
2 .2
1
-
4o
44.5
l.l
2
2 .2
^672
254
5,073
637
1,5^1
353
101
32
77
31
149
88
$12,56
$22.90
$32.07
$40.09
$58.93
10 0 .0
1 1 ,6 1 3
1,395
-
Eligible paper per $100 of total loans
$1 2 .0 2
-
$10 - $20
112
3 0 .1
372
(Millions of dollars)
do
Total loans
Eligible paper
Under $10
i
|
i
1
I
DISTRIBUTION BY LOANS A Iff) INVESTMENTS
(SIZE OF BANK)
jg.OOP,OOP to $10. OOP,OOP
NidHfer of "banks
Percentage of barks
Banks with following amounts of eligible paper per $100
of total loans
j
$5.44
536
-
Page
Total
(all banks
in group)
Banks
with no
eligible
paper
B-660b
5
Banks with following amounts of eligible paper per $100
____ ___________ oftotal loans
Under $10
$10-$20
$20-$30
$30 -$4 o
$Uo-$9o
12
9
3.1
2.b
10
b
k
2
$57.S3
$50 and over
3S3
100.0
17
4.4
127
33.2
128
3 3 .4
6U
1 6 .7
26
6.0
,'otal loans
Eligible paper
1.5P
213
17
U39
25
895
13 U
109
25
70
23
$5 .6 3
$1 4 .9 3
$2 3 .1 0
ro
ro
$UU.2U
231
32.1
235
26.8
136
15.5
8b
9.6
b6
5.3
6 .8
4 ,1 5 9
99
3^
31
bi
lb
25
(Millions of dollars)
do
Few York district
Number of banks
Percentage of banks
H*
O
o ca
• —-vl
o o>
Total loans
Eligible paper
7.16 5
9 U0
(Millions of dollars)
do
Eligible paper per $100 of total loans
Philadelphia district
Jiber of banks
freentage of banks
Total loans
Eligible paper
total
loans
95
515
$ 5 .6s
$12.39
$ 22.60
$39 .6 3
$UU.93
$62.59
1 3 .1 2
-
fb o
100.0
93
12.6
2^0
3 2 .u
188
2 5 .4
90
1 2 .2
6U
3,6
28
3.S
37
5.0
1.619
207
55
757
31
333
3 8b
9i
5^
13
16
7
20
13
$U.0 S
$lU.1 2
$3 3 .3 9
$UU.32
$6U.S2
$12.79
—
0
1—.
of
60
1 ,1 3 2
256
l,6 s i
r-'N
$100
22
CM
per
3^
3.9
-CO-
Eligible paper
(Millions of dollars)
do
-
CM*
$13.73
r -^
Eligible paper per $100 of total loans
-CO-
DISTRIBUTION 3Y FEDERAL RESERVE DISTRICTS
Boston district
Number of banks
percentage of banks
Page
Total
(all banks
in group)
Banks
with no
eligible
paper
B-66ob
6
Banks with following amounts of eligible paper per $100
of total loans
Under GlO
$10-$20
$4o-$50
$50 and over
$ 20-Coo
$30-$4o
77
37
5.3
23
3.3
12
1.7
6
4
DISTRIBUTION- EY FEDERAL RESERVE DISTRICTS
Cleveland district
Fyjker of “banks
pMfentage of banks
100.0
Total loans
Eligible paper
(Millions of dollars)
do
Eligible naoer "oer Jf'lOO of total loans
103
l4 .S
30U
U3.6
142
20.3
11.0
2,012
17^
62
1,1+33
GO
130
35
19
-
300
45
7
10
5
$3.64
-
$5 .3 7
$l4.9S
$26.61
*33.85
$1+3.311
$5 5 .3 5
443
100.0
20
**.5
71
15.8
121
27.0
90
20.1
66
14.7
39
8.7
4l
9.2
772
l4 l
13
119
7
373
159
4o
55
19
31
49
l4
21
13
$13.29
-
$6.24
$13.10
$24.37
$311.36
$44.50
$60.71+
363
10
6s
is .7
95
26.2
53
14,6
4l
11.3
69
19.0
23 4
63
3S
13
17
7
18
11
$3i+.5U
$i+i+.59
$6i+.33
69S
Richmond district
Humber of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
E^^ible paper per $100 of total loans
Atlanta district
IT-umber of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
15
ill
3
153
-
$6.99
$ 15.4 2
$20.75
24
0•
635
132
cvj
2.3
*cfy
Eligible paeer per $100 of total loans
100.0
27
7.^
Page 7
B-660b
Total
(all banks
in group)
Banks
with no
eligible
paper
960
10 0 .0
2k
lGk
2.5
Ba dcs with following amounts of eligible paper per 0100
of total loans
$10-$20
$20-030
17.1
221
2 3 .0
177.
1S.1+
129
13^
116
1 2 .1
129
13.5
26
1 ,6 3 4
99
C27
103
196
1+6
S3
2S
5S
25
1+5
2S
$1 1 .4 7
-
$6.05
$12.^9
$2 3 .2 3
$33.9 5
$4 3 .6 7
$6 1.55
500
10 0 .0
34
6.0
103
20.6
134
26 .s
100
2 0 .0
60
1 2 .0
6 .s
34
35
7.0
Ik
221
196
27
so
20
63
22
12
5
97
50
$6 .36
$1 3 .9 4
$2 5 .2 U
$35 .6 0
$1+1+.26
$5 1 .1 3
39
6 .5
SO
13.^
12 l+
20 .S
95
15.9
101
1 S .9
137
2 3 .O
•26
2
1+0
6
ll+5
37
95
32
1+2
19
101
69
$3 3 .1 3
$45.02
$6 7.9 5
Under $10
$30-01+0
$i+0-$50
$50 and over
DISTRIBUTION BY FEDERAL RESERVE DISTRICTS
Chicago district
Number of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
Eligible paper per $100 of total loans
St. Louis district
dumber of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
^^gible paper per $100 of total loans
Minneapolis district
Number of banks
Percentage of banks
Total loans
(Millions of dollars)
Eligible paper
do
t
Eligible paper per $100 of total loans
*
2,269
329
6S3
139
lk
$2 0 .31+
-
597
10 0 .0
21
3.5
1+56
16 U
7
$3 6 .0 3
-
$6 .79
$1 5 .7 4
$25.60
Page
■)
Total
(all banks
in group)
Banks
with no
eligible
paper
B-660b
0
Banks with following amounts of eligible paper per $100
of total loans __________ _______
$10-$20
Under $10
$20-$30
$30-$40
$U0-$50
$50 and over
DISTRIBUTION BY FEDERAL RESERVE DISTRICTS
Kansas City
Number of banks
Percentage of banks
Total loans
Eligible paper
(Millions of dollars)
do
Dallas district
Number of banks
Percentage of banks
(Millions of dollars)
do
Total loans
Eligible paper
3:
Jible paper per $100 of- total loans
(
127
15.0
1U9
17.7
l6U
19.^
31^
37.2
70
11
16s
-
93
7
ko
10U
30
72
32
102
65
-
$7.93
$16.13
$23.02
$35.96
$l|H.Hi
$63.UU
13
2.0
10
2.0
66
10.2
09
13.0
120
19.9
122
10.9
209
32.U
5
50
16
1.9
19
2.3
C lk
193
5
.$3 1 .3 S
Eligible paper per $100 of total loans
55
6.5
OUU
100.0
6^5
100,0
m
w
.
532
156
k
130
21
05
20
lk S
k3
62
-
27
55
3^
$29.33
-
$7.91
$16.37
$23.9^
$33.32
$UU.6o
$62.01
*
San Francisco district
Number of banks
Percentage of banks
5 U5
100.0
39
7.1
92
16.9
133
2U.U
^35
2U.0
73
13.^
^3
7.9
30
5 .5
Total loans
Eligible paper
1.973
210
Ik
1.3^1
61
303
U5
131
30
71
3k
2k
39
19
11
$^.53
$1^.75
$23.16
$33.39
$4i.o6
$59.01
(Millions of dollars)
do
V
Eligible paper per $100 6 ^ total loans
$10.62
—
—
r
#
/
H
/
~^r
C ^ e /
Cr^
VOLUME 223
PAGE 109
z£j;
c-v
&-
m
.
CG?T
EOx^iS, GRAX, BOYDSS A
SO Podoral Street
Boston
? :M X X *
l^bruary 8 , 1932.
Honorable itoy A* Young,
Ifederal Heeerve Bank,
Boston,ISaaa*
ity
dear Governor*
At present 8,500 shares of common stock without par value o f
She Atlantic Corporation arc held by three trustees in trust for the
benefit o f The Atlantic national Bank of Boston* Cie Atlantic Corpor
ation Is indebted to the Atlantic Bank on 'oacured open account in the
amount of $1,500,000. The only other nrincipl creditor of The Atlantic
Corporation is the Chase national Bank of the City o f New York v&ich
holds a demand note for $1,100,000, the security therefor consisting
of 22,367 shares o f the capital stock o f The Atlantic Bank and a ll of
the coraaon stock of Atlantic Securities Company*
In addition. The
Atlantic Corporation owes the aura o f $50,000 which w ill be the la st
payment due on account of the
urohase of M errill, Oldham A Company*
This amount is r>ayiihle April 1 . We propose to take or cause to be taken
the following steps, vis*
1,
2m
Arrange with the Chase Bonk that that bank w ill
look only to the collateral held by it for payment
of it s note*
Arrange for th© tissue to the Atlantic Bank of 15,000
shares of $7 dividend non-cumal?.tive nd non-voting pre
ferred stock without per value in exchange for the can
cellation o f the open account referred to above, this
stock to be carried on the books of the bank at $1.
3 . Separate by ap r oprlate arrsjfceiaenta completed
before the date on which the proposed increase of
the capital stock of the Atlantic hank shall take
e ffe c t, the ownership oi the cordon stock of 5he
Atlantic Corporation from the bank so that the
ooinon stock s i l l he held by trustee sfor the benefit
01 the >resent and future rliarehol&ars of the bank*
4.
Change the name o f The Atlantic Corvxar tion to “Post
Office Squate Securities Corporation * or some other
na ;a which w ill not indicate any connection with the bank*
5#
She Atlantic Corporation w ill borrow on its own promissory
one-year note bearing interest at the rate of 5 ^ per nrmuc
from certain of the Clearing House Baa«cs of Boston $6*
000 t000, and w ill with the funds so borrowed purcliase
2501000 stores of newly authorized coocion stock of the
Atlantic Bank and w ill pledge the stock so purchased as
security for the loan from the banks. It is understood
that the bank a to ll hare no legal or moral responsibility
for this borrowing.
6.
The meeting of shareholders of the Atlantic Bank has been
called for February 15, 19o2. At th is meeting it is pro
posed to authorise the reduction in the capital o f the
Atlantic Bn, k and the change of the par value of its
shares from 026 to £10. Both of those changes w ill, of
course, be subject to necessary approval oi the Cam tr a i
le r of the Currency and the ibdsral lieserve Board. The
meeting w ill thee be adj urnod to Uirch 8, on which day
action w ill be taken to authorise the increase of ca ita l
of the bank and $10,000,000 of new money w ill be oaid in .
7.
On February 15th or 16th subscription warrants w ill be
mailed to shareholders of the bank covering their sub
scription rights in com ction with the proposed increase.
•
Hoping that this i formation is wtot you want, X am,
lours very truly,
(Signed) John
ichardson
Copy to Ur. ftyatt
A
Dear Sea-tor G lass:
Dr.
i i l e r Has ju s t to ld ae t o t he had a ta lk with you 1 -3 1 evening
on the .o b je c t
o f
the proposed aeawtaont. to the Federal Ite.orve A ct.
X an not quoting hto c o r r e c tly , * *
1-orhop.
I understood him to say t -at you believed
t o t the fed eral Heserve Board had authorised Dr. ( M
M
^
3m or
Burgess to present it s v ie ™ in th e ir report to your adb-oorw ltteo.
I would
8ay in rep ly, that I was in fom ed t o t M essrs. Ooldenweiser and Burgess *ere
requested by your Sub-coom ittee to appear b efore than. and h elp theu with
suggestions ae to red raftin g the xiroposed aansurej that i
as understood
t o t any . p o t i o n s m * ' by ther* were th e ir own personal sugg s » o » ..a n d
did not in any way reprerent any opinion o f t o
Fades 1 Bosf *vo Board.
I
jaay add, as a n a tte r o f f a c t , no u « b e r o f the Board, to ny knowledge, ever
saw th e ir re c o ^ e n a a tio n s u n til they were submitted to your Ooraaittee.
I t
is hardly necessary to sta te that
i f
you c a ll u « >n a e , I sh a ll
be glad, a t any tin e , to confer with you on th is n a tte r .
Sincerely yours,
c^H' :
Hon. Garter 'lass,
United States Sen: te,
-as jngton, e 3.
VOLUME 223
PAGE 110
\
CONFIDENTIAL
Not for publication
B-675
EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS, JANUARY 1932
A
.. ----- ------------
.
- -
--------
Month
Federal
Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
® A L
January 1932
December 1931
January 1931
Earnings from Dis
counted
bills
Pur
chased
bills
U. S.
secur
ities
$135, >+3i
553.964
356.283
$97,838
517,246
107,08*+
3 6 9 ,6 77
$61,009
21+6,85*+
26,858
29,571
1^3,9^0
1 ^ , 206
21+8 ,25 1
71,942
27,067
31,391
88,929
34,245
16 ,1+18
' 33,914
97,>+78
51,633
26 1,685
73.429
2,1+68,1+0*+
2 ,2 9 1,6 6 7
67 ^,0*+6
6 6 7,15 9
FEDERAL RESERVE BOARD
DIVISION OF BANK OPERATIONS
FEBRUARY 11, 1932
of
Current expenses
Other
sources I
Total
Exclusive
of cost of
F .R. currency
$17,029
79,914
19,H3
23,890
$3 1 1 ,3 0 7
1,397,978
509,338
5*+i ,i 6*+
21,73*+
10,023
1 *+,618
216 ,72 6
4 7,9 1 9
50,980
197.^
211,999
60*+,886
1 1 ,2 7 5
16 5,381
2 75 ,5 3 4
109,606
17,59S
26,927
57,048
35,819
2,863
2 7 ,1+1+2
10 ,16 8
5 9 ,6 17
83,601
8,668
80,272
111, *+23
187,666
130,086
134 ,539
99,106
4 93,9 37
183,822
1 .3 7 9 ,1 2 6
1 ,288,076
1 ,3 5 5 ,6 9 8
346,087
*+82,501
121,952
689,379
337.428
118,026
1932 _____
J anuary
$153,442
517.481
156,391
203,039
117,542
98,573
75,110
4 ,867,663 2,12*+,185
4 ,751,623 2,205,379
2,482,237 2,187,698
Current net earnings
Total
Amount
$162,087
544,283
165,983
212,477
$11*9,220
Ratio to
paid-in
capi tal
Per cent
15.0
Available for
reserves, sur
plus and
franchise
tax*
328,687
26 .1+
$90,687
553,969
257,906
21+2,38*+
78,594
17.0
24,7
81,158
853,695
3 4 3 ,3 5 5
1 6 .5
21+.6
5 2 ,3 6 7
118,85*+
105,153
277,918
149,732
106 ,81+6
326,968
2 1 .5
2 3 6 ,8 5 7
15,649
1+.0
-4,059
75,242
136,61+6
36,181
51,020
100,9 97
186 ,935
312,052
11+.5
14.U
8.3
32.6
2 5 5 ,3 71
2,236,307
2,288,411
2 ,3 3 1 ,5 7 3
2 ,6 31,35 6
2 ,1+63,2 12
1 5 0 ,664
1 9 .4
1 ,820,634
18.0
1 .0
-396,906
29,089
*After making allowance for accrued dividends and current debits and credits to profit
and loss account but not for profit cr loss on sales of U. S, securities held in
special investment account.
VOLUME 223
PAGE 130
15,959
29.581
8 ,451+
C O P Y
February 11, 1932*
Dear Senator Class:
I gathered from what Dr. Miller said to me yesterday afternoon,
that you. would like to hear from me as to Section 3 of the proposed
hill amending the Federal Reserve Act.
I take pleasure in sending you six mimeographed copies of a
draft of a new section to take the place of Section 3 and Section 9
of the proposed hill. My reason for suggesting the new draft, primarily,
is that the declarations in Section 3 would, construed literally, appear
to har any hank from rediscounting, if it had outstanding a single
speculative loan, which result, I am sure,was not the intention of the
framers of this hill.
I have attached to my draft a memorandum on the subject of the
necessity of a provision giving the Federal reserve hanks and the Federal
Reserve Board power to discipline a member hank for abuse of Federal
reserve facilities. I think this suggested draft will cover satisfactorily
both Section 3 and Section 9 of the proposed hill.
IJLr*' ’
‘ ^
\ •
*
t
-jm. ••
I want to state in this connection, that this suggestion
represents merely my personal views, and X have not discussed the natter
in any way with the Board members.
Sincerely yours,
Hon. Carter Class,
!The United States Senate,
Washiigton, D. &
VOLUME 223
PAGE 138
.
fth
F o riry js'o . 131
O f f i c e
To
C o r r e s p o n d ee n c e
FEDERAL RESERVE
BOARD
Mr. Hamlin
From Mr, Sraead
Dafp
February 8, 1932
Subject: He serves required on Federal____
.Jot, •
— —
reserve notes under the Glass bill
•t0
2—8495
In accordance with your telephone request, we have compiled the reserve
ratio of each Federal reserve bank as of January 2D, 1932. on the assumption
that under the Glass bill the amount of gold with the agents
would be reduced
to the minimum amount required as collateral for Federal reserve notes now
outstanding, and that such gold and the notes offset thereby would both be
eliminated from the reserve calculation.
On this basis, the ratio of cash
reserves to the Federal reserve note'and deposit liabilities of each Federal
reserve bank ’*ould have been as follows:
Boston
Few York
Philadelphia
Cleveland
Ri chrrond
Atlanta
37.8
57.7
32.9
3^-1
33.7
23.1
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
System
H2.7
37.0
33.1
Hi .2
Hi .5
29.9
HH.U
7/e have also calculated the reserve ratio of each Federal reserve bank by
including, as suggested by you, all Federal reserve notes in circulation ac a
liability against which the Federal reserve banks must maintain a gold reserve
of Ho per cent, even though part of all of such notes may be offset by gold
pledged with the Federal reserve agents. On this basis, the reserve ratio- of
Federal reserve bank as of January 20, 1 9 3 2 , would have been as follows
Boston
Few York
Philadelphia
Cleveland
Richmond
Atlanta
VOLUME 223
PAGE 1 U
19.2
Hi.6
18.8
1 9 .2
21.8
1 6 .2
Chicago
S t . Louis
Minneapolis
Kansas City
Dallas
San Francisco
System
1.6.7
22.7
17.7
2 7 .2
27.3
18.2
26.1
As stated to you this morning, it does not seem to me that it is the
intent of the Glass bill to require a reserve against all notes in circula
tion without reference to gold held by the agent as collateral against
Federal reserve notes outstanding. If this had been Senator Glass’ inten\ tion, he should have provided for the repeal of paragraph R of section l6
of the Federal Reserve Act, which permits any Federal reserve bank .to re1
J*duee ivts liability for outstanding Federal reserve notes by depositing with
\
the Federal reserve agent its Federal reserve notes, gold, gold certificate!
or lawful money of the United States.
If the intent of the Glass bill were
to require Federal reserve banks to carry a gold reserve against all Fed
' ereil reserve notes in circulation, even though they are secured by gold
pledged with the Federal reserve agents, the Federal reserve banks could
avoid carrying a reserve against gold-socured notes by redeeming in gold
a sufficient amount of Federal reserve notes to reduce their note circulatiop'to tLe 'amount of eligible paper pledged with the agents.
In other
words, such a provision in the law would result in the anomalous situation
of the Federal reserve banks being able to increase their reserve ratio by
paying out gold whenever their note circulation exceeded the amount of
f
their eligible paper.
O f f i c e
To _
C o r r e s p o n d e n c e
Mr. Hamlir
FEDERAL RESERVE
BOARD
Date. February 10, 1932
Subject:.
I
i
2 — 8495
In accordance with your telephone request I am handing you
herewith two statements, one showing the resources and liabilities of
the Federal Reserve Bank of Boston on February 3, 1932 . as published
in the weekly press statement* and the other the resources and liabilities
as they would have been if the gold deposited with the Agent had been
held in reduction of the Barits liability on outstanding Federal
reserve notes*
%
VOLUME 223
PAGE 143
9
RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANK OF BOSTON ON FEB. 3, 1932
(In thousands of dollars)
RESOURCES
Gold with Federal reserve agents
Gold redemption fund with U. S. Treasury
Gold held exclusively against
F. R. notes
Gold settlement fund with F. R. Board
Gold and gold certificates held "by hanks
Total gold reserves
Reserves other than gold
Total reserves
Non-reserve cash
•Bills discounted:
Secured hy U.S. Government obligations
Other bills discounted
Total hills discounted
Bills bought in open market
U. S. Government securities:
Bonds
Treasury notes
Certificates and hills
Total U. S. Govt, securities
Other securities
Total hills and securities
Due from foreign hanks
F.R. notes of other hanks
Uncollected items
Bank premises
All other resources
TOTAL RESOURCES
168,627
4,658
173,285
12.931
-1-3,155
2 0 5 ,371
19.416
224,787
S.^36
22,449
18.864
41!313
11.427
23.416
4.466
28,716
56.19s
- L o gs
111.963
695
244
44,Q4S
3.336
_ 1 J5.?
395.661
LIABILITIES
F. R. notes in actual circulation
Deposits:
Member hank - reserve account
Government
Foreign hank
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
TOTAL LIABILITIES
Reserve ratio (per cent)
Contingent liability on hills pur
chased for foreign correspondents
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to F. R. hank by F.R. agent
Held hy Federal reserve hank
In actual circulation
Collateral held hy agent as se
curity for notes issued to hank
Gold and gold certificates
Gold fund - F. R. Board
Eligible paper
Total collateral
186,647
122,594
3.150
5,599
205
131.548
44,935
11,684
20,039
808
395.661
70.6
23.867
213,420
.2.6,773.
186,647
47,010
121,617
. 50,119
218,803
rff*
STATE WENT OF FEDERAL RESERVE BANK OF BOSTON AS OF FEBRUARY 3, 1932,
REVISED TO ILLUSTRATE EFFECT OF PROVISIONS OF THE GLASS BILL ON
FEDERAL RESERVE NOTE LIABILITY AND RESERVES
.. ' •* '
'
RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANE OF BOSTON ON FEBRUARY 3, 1932
(In thousands of dollars)
*
. RESOURCES
Gold and gold certificates in vault
Gold settlement fund with F. R. Board
Gold redemption fund with U. S. Treasury
Total gold reserves
V Reserves other than gold
Total reserves
Non-reserve cash
Bills discounted:
Secured hy U.S.Govt. obligations
Other bills discounted
Total bills discounted
Bills bought in open market
U. S. Government securities:
Bonds
Treasury notes
>
Certificates and bills
Total U. S. Govt, securities
Other securities
!
Total bills ana securities
Due from foreign banks
F. R, notes of other banks
Uncollected items
fBank premises
All other resources
TOTAL RESOURCES
18.525
12,931
10,671*
42, 127
19.4i6
61,5*0
8,436
22,449
18,864
41.313
11,427
23.416
4,466
28,316
56,198
3,025
111,9 6 3
695
244
44,948
3.336
1.252
232.417
LIABILITIES
Federal reserve notes - net
Deposits:
Member bank - reserve account
Government
Foreign bank
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
TOTAL LIABILITIES
Reserve ratio (per cent)
Contingent liability on bills pur
chased for foreign correspondents
23.403
122,594
3.150
5,599
205
131.548
44,935
11,684
20,039
808
232.417
39-7
23,867
,6
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes issued to bank
Federal reserve notes held by bank
Federal reserve notes in circulation
Gold with Federal reserve agent
Federal reserve notes - net
♦Minimum amount required.
213.420
26.773
186,647
165.244*
23,403
L&.
f' Form No. x31
O ffice Correspond ence
FEDERAL RESERVE
BOARD
7 o ___ Mr. Hamlin
From
Date_ February 10 , 1932
Subject: D istribution o f e lig ib le paper
Mft> flmsad
among member banks
In compliance with your telephone request fo r a b r ie f statenent o f the
extent to which the borrowing capacity o f member banks would be affe cte d i f
United States se cu ritie s were no longer availab le as a basis fo r borrowings
a t the Federal reserve banks, I am giving below the ratio o f e lig ib le assets*
and o f e lig ib le paper to to ta l loans and investments, on the basis o f member
bank condition reports for September 29 , 1931:
w
.
Total, all member banks
Banks with loans and investments —
Under $200,000
$200,000 to $ 500,000
$ 500,000 to $ 1 ,000,000
$ 1 ,000,000 to $ 5 ,000,000
$ 5 ,000,000 to $ 10 ,000,000
$ 10 ,000,000 to $ 50 ,000,000
$ 50 ,000,000 and over
Eligible assets
Eligible paper
per $100 of loans per $100 of loans
and investments
and investments
$23.99
$9.06
■> ,•
3^.90
2 7 .2 8
21.17
lg.ll
18.72
2 1 .21*
27.17
30.1*2
21.87
15 .3 6
10 .1*7
,•
9.53
8*58
7.71
♦Represents e lig ib le paper plus U. S. Government se cu ritie s not pledged
as c o lla te r a l fo r National bank notes*
It will be noted from the table that, on September 29, member banks had
$23*99 of assets on which they could borrow from the Federal reserve banks for
each $100 of loans and investments, whereas if United States securities had
not been available as a basis for such borrowings, member banks would have had
available for this purpose only $9*06 for each $100 of their loans and invest
ments*
The reduction in borrowing power would by no means have been uniform fo r
a l l member banks.
VOLUME 223
PAGE 147
For example, member banks having loans and investments o f
fU*
<
Mr. Hamlin - #2
less than $200,000 would* have had their borrowing power reduced from $3*+*90
to $30 .1+2 per $100 of loans and investments, whereas member banks with over
$50 ^000,000 of loans and investments would have had their borrowing power
reduced from $27.17 to $7*71 per $100 of loans and investments.
The reduc
tion in assets available as the basis for borrowings at the Federal reserve
banks, irtiich would result from
securities as
the elimination of United States Government 1
a basis for such borrowings, would h a tb ranged from 12. g per |
cent for the smallest banks to 71*6 per cent for the largest banks.
You will also note that, on the average, the proportion of eligible paper
to total loans and investments declines as the size of the bank increases.
Luc. nM
F o rm N o . 13i
A
Office. C o r r e s p o n d e n c e
T o.
FEDERAL RESERVE
BOARD
Mr. Hamlin
Date_
Feb r u ar y 10 . 1932
Subject:__ Speculation in S e c u ritie s and
in Commodities
jKr• Goldenweiser
The accompanying charts have been prepared w ith referen ce to the
question presented by your memorandum o f January 2 7.
You w i l l note th a t a l l three charts have been prepared on a r a t io
'Stale with a view t o showing flu c tu a tio n s in percentage term s.
The fig u re s underlying the curves fo r trad in g in cotton futures
hare never been published ; th ey have been furnished t o us by the T rea suiy on condition th at no p ublic use would be made o f them without sp e c ia l
permission.
Monthly data r e la tin g to trading in commodity fu tu res are a v a ila b le
only for recent y ea rs.
The long-term curve fo r trad in g in grain fu tu res
that is shown on one o f the c h a r ts , covering the years 1884-1 9 2 0 , i s
basei on certa in estim ates made by Dr. Watkins o f the Federal Trade Com
mission; they r e la te to a period p rio r to the establishm ent o f the Grain
Futures Adm inistration and the experience o f the l a t t e r has been such as
to : aase considerable doubt as to the accuracy o f th ese e stim a te s.
r. appears, on the whole, and w ith due reserv a tio n s on account of
i m r f A t i o n s in the d ata, th a t there has been a considerable number o f
iv;tanc«s in which stocks and commodities have moved up and down to g e th e r,
bv; that th e number o f instan ces in which the movements have not been
a^jtncident is probably even larger,
[t' rnmmmmrm, _nam-Mm-Tr-
VOiUME 223
PASE U 8
{
V O L U M E
OF
T R £ ® N G
A N D
IN C O M M O D I T Y
FUTURES
%
IN S T O C K S
W heat
iff
Stocks
WHEAT - Mi///ons o t bushe/s tra d e d p e r d ay ( Annua/ a v e r a g e s
CORN
C O
T T O
S T O
J92I
C
M i/ / t o n s
N
K S
-
W
o f
illh o p s o
P e rc e n / a t/ e
m i
b l/ s h e / s
f
b a le s
o f/ o h !
1923
tra d e d
p e r
d a y
tra d e c f p e r
lis t in g s
( A n n u a / a v e r a g e s o f d a / iy
/ T io n f b
tra d e cf p e r m
!92t+
o f d a ;/ y f/ g t
(A n n u a /
o n th
/92 S
o v e ra g e s
f ig u r e s J
o/ /nond/y
f ig u r e s J
( A n n u a l a v e ra g e d m o n M / ^
/926
1927
1928
1927
J92o
/fs /
/ 9J3~
/ o r
V O L U M E
4-A..
OF
T R Y I N G
,
'‘ k..
A N D
IN C O M M O D I T Y
F U T U R E S
IN S T O C K S
•
®
*
4.-* m
Wheat
^0
Wheat
/
30
Lorn
20
\Cotton
\
Corn\
Motion
7
Stoc/cs
Stocks\
WHEAT Millions of bushels traded p e r day ( Monthly ai/erjyes o!da/fy fryuresJ
CORN - Millions of bushels tradecj per day ( Monthly avertyes of dai/y figieres)
COTTON- MTiH/ons o f bates traded dur/'ng Mr /nont/i
STOCKS -Percentage of to ta l listings traded during the month
Ml
1921
n
T
t it
1922
f
:
1923
/92V
\92S
1926
1921
1928
1929
1930
193/
1932
S to c k
s
to o
S to ck s
Futures
Stocks
futures
f
UTURES-Index o f
dmed/ngon
S T O C K S - Ml'//Sons o f Shores frddeqfper /nont/r, f
1 880
I8 8 S
18 90
18 9 S
1900
tiCA/cago Soared o Trae/t. /9/S=/oo
flvfruyei offiront/r/y f/fd/TsJ
1905
19/0
19/5
|9Z0
>
'
r m N o . l131
5l
Office
'
C o r r e s p o n d *e n c e
FEDERAL RESERVE
BOARD
Date
Subject:
February 11. 1952
Deficiencies in average reserves
table taken from the galley proof of the federal Reserve Bulletin for February,
1932, showing the excess reserves, deposits, and borrowings at the Federal re
serve banks for member banks in each Federal reserve district for the months of
jf
October, November and December 1931*
y
Excess reserves of central reserve city
banks, reserve city banks, country banks and all member banks for the years
1930 an(i 1931* were as follows:
Central
Reserve
city
Reserve
city
Country
banks
Systam
1929
$12,000,000
$9,400,000
$21,900,000
$43,300,000
1930
14.800.000
15.200.000
24.800.000
55.400.000
1931
39.900.000
19.900.000
29.900.000
89.700.000
Excess reserves of member banks during the months of June, July,
August, September and October I93I we~e much above the average and were
held largely in Few York City and Chicago, because of the extremely low
t
interest rates prevailing throughout that period.
Beginning with the month of ITovember, excess reserves of member
banks declined to around the average which they usually find it necessary
to maintain in order to avoid reserve deficiencies.
During recent weeks
excess reserves of central reserve, and particularly of reserve city banks,
have been unusually low, largely because of the vary substantial decline
which has taken place during the past few months in member bank deposits.
W
5P
1929,
#
Mr. H am lin -
Since the end of last September net demand and time deposits of reporting
4%
f-?<r
* ' |**
•
member "banks in leading cities have declined from $20,002,000,000 to
$16 ,912 ,000,000 or by $3,090,000,000, of which $863 ,000,000 has occurred
since the first of the year.
You will note from the enclosed table that reserves held by banks
in the San Francisco Federal Reserve District were below legal requirements
This
to the extent of 1.6 millions in October and 4 millions in December
fa
fc&s due largely to the reserve deficiency of one of the larger banks in
that district, with which you are familiar.
For the three weeks ending January 22, 1932, excess reserves of banks
in central reserve cities averaged $9*000,000, while average reserves of
banks in reserve cities were somewhat below requirements as a result of a
substantial deficiency in the San Francisco district.
No figures are yet
available to show the amount of excess reserves carried by country banks
since the first of the year.
r
ALL MEMBEiyjANKS— DEPOSITS, RESERVES, ETC., BY USTRI* fS
[Averages
Federal reserve district.
flgtyjs for 3 months ending December 3;, 1931. In millions ml^fflurs]
Reserv e held
Deposits subject to re
serve (net demand and
time deposits; sev; fol
lowing page)
Indebtedness at Federal,
reserve banks
•
Excess
Total
Decem October Novem Decem October Novem Decem October Novem* Decem
October Novem
ber
Irer
ber
ber
ber
ber
ber
ber
Boston....... ..........
. ..........
New York
___________
Philadelphia__________
Cleveland_______________ ___
Richmond__________________
Atlanta_______ ____________
Chicago..... ................... ...........
vst. L o u is ...____ ____________
Minneapolis________________
Kansas C ity______ ________
Dallas____ ______________ .
San Francisco_______________
2,210
0,853
2,200
2,690
993
823
3,934
998
798
1,049
690
2,894
Total....... ................... . ..
29,138
2,100 ' 1„951
9,459
9,181
2,137
2. (J79
2,510
2,565
965
938
789
795
3,822
3,689
919
965
777
789
1,012
998
677
688
2,815
2,861
28, 218
154.3
996. 1
131.5
159. 9
57.9
51.4
306. 0
64.7
40.4
76.8
53.4
157.2
27,353 2,255.6
135.8
915.7
128.2
150.3
55.6
49.4
289.0
64. 6
45.9
74. 1
50.2
159.5
129.0
902. 1
124. 4
147.0
53.7
48.6
283.8
03. 1
45.1
73.5
49.0
149.8
2,118. 1 2,069.5
-
.6
i6
3.1
3.9
1.7
1.7
19.8
3.6
2.5
5.8
6.3
-1 .6
4.1
it. 3
2.6
1.8
.8
1.6
9.8
5.1
2.5
6.0
3.2
2.2
11.6
24.5
L3
1.1
.4
1.2
14.6
3.7
2.8
62
2.9
-4 .0
17.0
152.9
89.3
78.5
36 1
35.5
50.3
18.4
60
23.6
26 5
81.0
26 0
120. 2
108.3
98.9
46 5
46 7
69.8
268
64
32.1
22.9
86.4
47.5
167.4
117.5
116 6
39.5
47.4
86.5
26.3
61
28.0
17.fi
68.5
129.1
57.0
66.3
608.1
684.0
763.3
@FedFRASER