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The Papers of Charles Hamlin (mss24661) 367 06_001- Hamlin, Charles S., Scrap Book — Volume 240, FRBoard Members 205.001 - Hamlin Charles S Scrap Book - Volume 240 FRBoerd Members INKRIologolistiviiki*** 111 BOARD OF GOVERNORS OF' THE FEDERAL RESERVE SYSTEM Office Correspondence To The Files From Mr. Coe Date August 11, 1941 Subject: tYW 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 240 of Mr. Hamlin's scrap book and placed in the Board's files: VOLUME 2L0 Page 9 Bills discounted by the F.R. Banks for Individuals, Partnerships and Corporations. (Names those to whame some loans made) Page 23 Advances to Member Banks under Section 10(b) of the F.R. Act. Page 25 Regulations of Comptroller of the Currency re Conservators (X-7398). Page 26 Memo to Mr. Hamlin from Mr. Goldenweiser re Devaluation of the Gold. Page 27 Bills Discounted by the Federal Reserve Banks for individuals, Partnerships and Corporations. Page 34 Earnings and Expenses of F.R. Banks, March 1933. • Pa•e X-7406) Securities Bill. Page 72 Banks Licensed and Not Licensed to Open as of March 29, 1933. (Marked Confidential) Page 79 Preliminary Memo for the Open Market Policy Conference, April 19, 1933. Page 81 Report of Open Market Operations to Meeting of Open Market Policy Conference held in Washington on April 19, 1933. Page 125 Earnings and Expenses of F.R. Banks. , 0 March 30, 1933 Federal Reserve Bank of New York Advances - Ira R. Crouse $10,000 (Renewal) L. C. Smith & Corona Typewriter Inc. $150,000 (Renewal) Federal Reserve Bankof Atlanta Repayments - City Bank & Trust Co. $30,000 Federal Reserve Bank of Minneapolis Repayment - Bricelyn Canning Co. $5,000 wdlt Szt/110 Mr. Hamlin xxxxXXXIMM BILLS DISCOU7TED BY THE FEDERAL RESERVE BA17:S FOR IwDIVIDUALS, PARTITERSHIPS AND CORPORATIO-1'S DATE 1 Aggregate Transactions to date 1'FederalYumber of indiReserve viduals, etc., Bank for whom -11:73er has been discounted Amount discounted Amount repaid Amount outstanding March 30, 1933 Transactions today Amount repaid Amount discounted 1 -- Boston Yew York Philadelphia Cleveland 13 5 3 $1,733,000 22,000 47,000 $1,109,000 4,000 __ $624,000 18,000 ...... RiChlTIOnd Atlanta Chicago St. Louis 1 18 2 2 5,000 245,000 278,000 19,000 -_„ 204,000 __ __ 5,000 110,000 278,000 19,000 __ ..... __ __ -$30,000 -__ 6 1 147,00o 128,000 98,00o 91,000 49,0oo 37,000 ...... -- 5,000 IMO. mm4.• 111nneapolis 6.i Innsas City Dallas San Fralicisco Total DIVISIOY OF BATIC OPERATI07S MARCH 31, 1933 -- -_ -- mml MM. M.•••• ... ...r..0 Mmb.m.. -- 4M1••• -_ 3 1,172,000 1,000,000 172,000 -- 54 3,796,000 2,506,000 1,289,000 -- 35,000 B-147 (Revised Aug. 23,1932) VOLUn 240 PAGE 9 'NW ADVAYCES TO MEMBER BAYKS UNDER SECTIOY 10 (b) OF THE FEDERAL RESERVE ACT JVA March 31, • Federal Reserve Aggregate amount 1933 Amount Advanced to date Paid to date Outstanding Cleveland $3,748,000 19,151,000 11,295,000 5,922,000 $2,891,000 8,188,000 6,527,000 3,152,000 857,000 10,962,000 4,768,000 2,770,000 Richmond Atlanta Chicazo St. Louis :552,000 13,977,000 2,337,000 605,000 250,000 10,155,000 92'8,000 416,000 102,000 3,821,000 1,409,000 189,000 Minneapolis Kansas City Dallas San Francisco 7,743,000 17,S,000 56,342,000 4,219,000 3,524,000 176,000 21,395,000 36,947,000 1,515,000 2,000,000 . 123,648,000 58,297,000 55,349,000 2,507,000 3,398,000 Bank Boston 7ew Yorl: Total DIVISION OF BAN: OPERATIONS APRIL 3, 1933 Advance6. today $210,000 Paid today $1,328,000 3,000 82,000 300,000 40D,000 56,000 9,000 2,000 B-150 (Rev. Mar. 14, 1933) VOL. 240 PAGE 23 • March 31, 1_933 Federal Rserve Bank of ITew York Advances - J. H. Meyer Repayments u u $10,030 (Renewal) o,300 7ederal Reserve Bank of Atlanta Advances - Miss Bessie ScarboreuEll Poplarville, Miss. $1,000 Federal Reserve Bank of Chicago Repayments - International Harvester Co. $210,000 7ecleral Reserve Bali: of St. Louiq Advances - Sachar & Cantor $1C,000 Federal Reserve Banl: of lanneaDolis Advances - MaGill & Co. $1,3D0 (Renewal) Repayments - Bank of Elk River t5,000 Federal Reserve Bank of Kansas CityRepayments - Yew Mexico Lumber & Tildoer Co. 21A-5 BILLS DISCOUNTED BY THE FEDERAL RESERVE BANKS FOR INDIVIDUALS, PARTNERSHIPS AND CORPORATIONS March 31, • Federal Reserve Bank Aggregate Transactions to date kumber of indiAmount Amount viduals, etc., repaid discounted for whom paper has been discounted Boston Yew York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis 411 lanneapolis Kansas City Dallas San Francisco Total z DIVISION OF BANK OPERATIONS APRIL 3, 1933 4 5 3 $1,733,000 22,000 47,000 1 19 2 5,000 246,000 278,000 3 37,000 • 13 r 0 $1,115,000 4,000 204,000 210,000 Transactions today Amount outstanding Amount discounted $616,000 Amount repaid t6,coo 18,000 47,000 5,000 41,000 $1,000 68,(ro 37,07)0 18,000 1 128,000 -- 103,000 91,000 -- 43,00 37,000 -- 3 1,172,000 1,000,000 172,000 56 3,815,000 2,727,000 1,086,000 147,000 1933 210,000 5,000 245 19,000 221,245 B-147 (Revised Aug. 23,1932) • • FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD X-7398 April 1, 1933. SUDJECT: Regulations of Comptroller of the Currency re Conservators. Dear Sir: The Comptroller of the Currency has prepared instructions to be issued to conservators of national banks appointed pursuant to the provisions of the lational alik Conservation Act (Title II of the Act of March 9, 1933), and there are inclosed herewith copies of the sections relating to T. nki6 Old Reserve Account, Conservator's S)ecial.Account, Conservator's General Account, Conservator's Depositary Account, and i_ssistants to Conservators. These sections were pre- pared by the Comptroller's office with the assistance of members of the Board's staff and the following representatives of Federal reserve banks: Mr. John S. Sinclair, Counsel to the Federal Reserve . Bank of Philadelphia Mr. H. F. Strater, J.S.7alden, Jr., too Cashier of the Federal Reserve ;- lank of Cleveland Controller of the Federal Reserve Bank of Richmond Mr. Robert S. Parker, Counsel to the Federal Reserve Bank of Atlanta Mr. Charles B.Dunn, of Counsel to the Federal Reserve Bank of Chicago. VOL. 240 BMX AS 1 X-7398 2 The sections of the instructions inclosed herewith have been approved by the Comptroller of the Currency; but it is necessary that the instructions be ap]proved both by the Comptroller of the Currency and by the Secretary of the Treasury. out of the city and will not return until Monday. The latter is We will advise you promptly by wire as soon as the complete instructions have been finally approved; and the Comptroller of the Currency will furnish you with complete copies of these instructions and request you to handle accounts for conservators of national banks in accordance with the telms and conditions thereof. The Board considers it desirable that the Federal reserve banks cooperate in this matter by opening and maintaining accounts for conservators in accordance with the terms and conditions of the sections inclosed herewith. Very truly yours, Chester rorrill, Secretary. Inclosurb TO GOVERNORS OF ALL FEDERLL RESERVE BANKS. X-7396 CERT= SECTIONS OF IrSTRUCTIOITS OF THE COMPTROLLEE OF THE CURRENCY TO CONS1RVATORS OF NATIONAL BlNKS. 402 Bank's Old Reserve Account. The conservator should make no remittances or transfers for credit to bank's old reserve account and should draw no drafts whatever against such old account. The Federal reserve bank may be requested to make transfers to the conservator's special account, described below, of funds which 'llave been credited to the bank's old reserve account but which the conservator has definitely determined to represent segregated deposits and which should have been credited to a special account in the Federal reserve bank. Where the bank in the hands of a conservator is not indebted to the Federal reserve bank or where the old reserve balance exceeds the amount of the indebtedness to the -Zederal reserve bank, the Federal reserve bank may be requested to make transfers of such excess amo'Int to the conservator's general account, described below, with the authorization of the Comptroller of the Currency. These transfers to the conservator's special account or eeneral account may not be made by drafts or checks drawn by the conservator, but 71ust be made with the consent of the Federal reserve bank under special arrangeeeents asreed to by it. • • -2 X-7396 403 Conservator's Special Account. If the conservator :as been authorized to accept new deposits which are not subject to any liclitation as to payment or withdr awal, to be segregated as provided in section 206 of the Bank Conservation Act, the funds received pursuant to such authority may be deposi ted in the Federal reserve bank of the district in which such bank is located in a special account in the name of the conservator which account may be styled substantially as follows: it Conservator's Special Account (Bank -a:nd (Conservator) The conservator may deposit with the Federal reserve bank in this account cash, Covernnent checks, checks and other cash items which the Tederal reserve bank can collect at par. The Federal reserve bank may receive and handle all cash items deposited in this account subject to the terms and conditions of Regulation I of the Federal 'Reserve Board and of such bank's current circular regarding the collection of cash items. The Federal reserve bank will not be expected to give credit for such checks and other cash items in accordance with its published time schedules which are used in Giving credit to member banks, but may increase the time of credit availability in such time schedules by a number of days estimated to be suffi- X-7396 cimt to obtain mail advice of non-paynent of auch items. The conservator, however, should bear in mind that all such items are received by the Federal reserve btak subject to final payment and that withdrawals of de-posits represented by such checks and other cash items should not be permitted by the conservator until sifficient tifle has elapsed to permit of the collection of such itams in accordance viith the foregoing provisions. The con- servator may be held accountable for any loss resulting from the payment of such deposits in violation of these instructions. The conservator may accept maturing notes, drafts, Government obligati:ms and other non-cash items for collection and for credit when collected to the special segregated accounts of depositors. The Federal reserve bank may receive and handle such non-cash items for collection and credit on its books to the conservator's special account, in accordance with its non-cash collection cular. The conservator will be advised of such credit in each instance and should not permit any withdrawals of de:osits represented by such non-cash items until he has received such advice. All deposits by the conservator in the conservator's special account at the Federal reserve bank and all non-cash items sent to the Tederal reserve bank for collection and credit of the conservator's special account should be marked so as to indicate clearly to the Federal reserve bank that such items are for the X-7396 -4 credit of such special accounts. All iters sent to the Federal reserve bank by the conservator for credit to this account, whether cash items or non-cash itams, should be indorsad, "Pay to the Order of the Federal Reserve Bank of for credit to Conservator's special account (Bank and address) By (Conservator) All prior indorsements guaranteed." The conservator may draw drafts against this spucial account at the Federal rescrve bank (a) in payment of chocks or drafts drawn by depositors against such special segregated deposits when presented to him by other banking institutions, (b) in order to provide himself with cash with which to pay such deposits;. or (c) to provide de- positors in such segregated accounts with drafts for exchange purposes. All drafts against such account should be siFmed by the conservator and otherwise identified in such manner as to show clearly the account to which they should be charged. If the bank which is in conservatorship accepted new deposits withdrawable without restriction pursuant to agreement or under State lec,islation, gubernatorial proclamation or Presidential proclamation and opened and maintained a special account with the • X-7396 - 5- Federal reserve bank, representing such new deposits, the Federal reserve bank should be requested to transfer the balance now carried in such special account to the Conservator's Special Account at the Federal reserve bank. 404. Conservator's General Account. Funds received by the conservator in connection with his conservatorship from any source other than from special segregated deposits referred to above may be deposited in the Federal reserve bank of the district in which such bank is located in a general account in the name of the conservator which account may be styled substantially as follows: If Conservator's General Account (Bank and address) (Conservator) I! Any collections made by the conservator upon the unpledged assets of the bank while in conservatorship may be deposited in this general account. The conservator may deposit with the Federal reserve bank in this account cash, Government checks, checks and other cash items which the Federal reserve bank can collect at par. The Federal reserve bank may receive and handle all cash items deposited in this account subject to the terms and conditions of Regulation J of the Federal Reserve Board and of such bank's current circular regarding the collection of cash items. X-7396 C, The Federal reserve bank will not be expected to give credit for such checks and other cash items in accordance w-Ith its published time schedules which are used in giving credit to member banks, but may increase the time of credit availability in such time schedules by a number of days estimated to be sufficient to obtain mail advice of non-payment of such items. The conservator, however, should bear in mind that all such items are received by the Federal reserve bank subject to final payment. The conservator may deposit in such general account maturing notes, drafts, Government obligations and other non-cash items for collection and for credit when collected. The Federal reserve bank may receive and handle such non-cash items for collection and credit on its books to the conservator's general account, in accordance with its non-cash collection circular, and the conservator will be advised of such credit in each instance. All deposits by the conservator in the Conservator's General Account at the Federal reserve bank and all non-cash items sent to the Federal reserve bank for collection and credit of the Conservator's General Account should be marked so as to indicate clearly to the Federal reserve bank that such items are for the credit of such general account. All items sent to the Federal reserve bank by the conservator for credit to this account, whether cash items or non-cash items, •••• X-7396 should be indorsed, Say to the Order of the Federal Reserve Bank of for credit to Conservator's General Account (Bank and address) By (Conservator) All prior indorsements guaranteed." The conservator may withdraw funds from this general account only when and as authorized by the Comptroller of the Currency. All drafts against such account should be signed by the conservator and otherwise identified in such manner as to show clearly the account to which they should be charged. X-7396 405. Conservator's Depositary Account. In addition to a Special Account and General Account maintained with the Federal reserve bank, the conservator may open an account with a national or State member bank, licensed to reopen by the Secretary of the Treasury, which account is referred to herein as the "Conservator's Depositary Account." This account may be utilized for the following purposes: (a) As an account in which to maintain funds for current operating purposes, including salaries, supplies, and other items of expense. (b) For the collection, for the account and at the instance of depositors, of checks and other cash items drawn on nonpar banks which will not be accepted by the Federal reserve bank as well as any noncash items which the Federal reserve bank will not handle. Such collections will be undertaken by the depositary at the instance of the conservator, but for the account and as agent of the owners or holders of such items. When and as the conservator may receive actual payment of such items, the proceeds may, with the acquiescence or upon the direction of the depositors, be placed in special sogregated accounts to the credit of the depositors and then transferred to the conservator's special account with the Federal reserve bank. For deposit therein of collections effected by the conservator from assets of the bank and for the deposit of cash and of checks or other items belonging to the bank. For collection, at the instance and for the account of others, of checks or other items, whether cash or noncash, left or placed with the conservator for that purpose. The conservator shall make transfers from time to time from the depositary account to the conservator's general account with the Federal reserve bank described on page of these instructions, of such excess of collected funds as will not be needed in this account for current operating purposes. Withdrawals from this account may be made by the conservator for any purpose authorized herein. • Nsvad• - 9 IWO X-7396 Chapter V ASSISTANTS TO CONSERVATORS. The Conservator may appoint a competent person or persons to serve as his assistant or assistants. An assistant to a con- servator shall have the right to sign in the name and on behalf of the conservator checks drawn on any account mentioned herein, to the extent and under the circumstances herein authorized, as well as to perform such other purely ministerial duties and fanctions of a rautine nature and not involving the exercise of discretion, as the conservator may from time to time aelegate and authorize. The name 'of any 4such assistant shall upon appointment be promptly certified to the Comptroller of the Currency and tn the Federal reserve bank and the conservator's depositary bank. When notifying the Federal reserve bank and depositary bank of the appointment,of any such assistant, the conservator shall furnish them respectively with a specimen signature of such assistant. Form No. 131 FEDERAL RESERVE BOARD Office Correspo ence To Li.. Hamlin From Lr. D9le Subject: April 6, 1933 Devaliption of the gold dollar Goldenweiser .P0 If the United States had no outside trade or business, a reduction in gold content of the dollar would have these effects: first, it would benefit the gold producers who could get twice as many dollars for their gold; and second, it would increase the excess reserves of the Federal reserve banks. immediate effects on prices. It would have no direct or But since we do have foreign trade, foreign exchange would rise in value. Americans would have to pay more for francs and pounds than they do now. Foreigners would acquire dollars for fewer units of their own currencies. This would make it profitable for foreigners to buy things in America and difficult for Americans to buy goods abroad. * As a consequence there might be a tendency for a while for prices to rise. There would be no oppor- tunity, however, to adjust prices as between raw materials and finished goods and hence difficult adjustments would Ilve to be made as between wages and the cost of living. Furthermore, protective measures by foreign countries, in the form of exchange restrictions, quotas, etc., would inevitable result. There would ensue a world- wide competition in devaluation with disastrous consequences to trade. When an adjustment was ultimately reached, debtors whose debts do not call for payments in gold dollars of present weight and fineness would benefit to the extent that prices have advanced, while debtors whose obligations carried a gold clause would suffer. VOLUME 240 PAGE 26 2-8405 • • X-7406-a Anril 11, 1933. Honorable Duncan U. Fletcher, Chairman, Committee on Bankin and Currency, United States Senate, Washington, D. C. dear Chairman: Reference is made to the request contained in the letter of April 4, 1933, from the acting Clerk of your Committee for a report of the Federal Reserve Board on the bill, S. 875, to provide for the furnishing of information and the supervision of traffic in investment securities in interstate commerce. On April 1933, the 3oard had occasion to write to you making certain suggestions with regard to the possible application of the provisions of this bill to bankrsf acceptances and short-time commercial pa-per. As stated in that letter, it appears that the bill is intended to ap7,17 to traffic in stocks, bonds, debent ures and other similar securities of the kinds commonly known as investment securities which are issued for the purpose of obtaining capita l funds and which are purchased as investments, and that it is not intend ed to apply to bankers' acceptances or to short-time comziercial paper issued for the purpose of obtainin: funds for aurrent transactions in commer ce, industry or agriculture which are purchased by banks, insura nce companies and others as a placement for short-term funds. By subsection (a) of Section 2 (page 1, line 7), however, the term "security" as used throughout the bill is defined as including any "note" or "evidence of indebtedness" as well as any stock, bond, debenture, etc., so that X-7406-a Honorable Duncan U. Fletcher -2- the definition appears to be broad enough to include such bankerst acce.ptances and com.lercial paper. In its letter the Board suggested that the bill should be amended by adding at the end of line 9 on page 2 a proviso exempti ng bankers' acceptances and notes, drafts and bills of exchang e growing out of current commercial, agricultural or industrial transac tions or the proceeds of which have been or are to be used for current commercial, agricultural or industrial purposes, when such paper has maturities not in excess of nine months. However, there are other similar classes of paper, such as paper issued to finance the breedin g of live stock, which may be sold on the open market with maturities exceedinf: nine months; and it would seem desirable in the circumstances that the Federal Trade Commission be given sufficient discretion to enable it to apply the provisions of the bill in harmony with its true intent and meaning. A form of substitute amendment for this purpose is submitted herewith for the consideration of your Committee. It appears, further, that the provisions of the bill are manifestly not intended to be applicable to Federal reserve notes, Federal reserve bank notes, and Federal reserve bank stock; but the definition of "security" contained in subsection (a) of Section 2 (page 1, line 7), referred to above, appears to be broad enough to include such notes and stock. It is noted that the National bank notes and National bank stock are exempted from certain of the provisions of the bill by a X-7406--a Honorable Duncan U. Fletcher — 3 provision contained in the present subsection (b) of Section 11 (page 20, lines 18 and 19); and the provision following immediately there— after (page 20, lines 19 to 22) apparently was intended to exempt obligations of institutions such as Federal reserve banks. This subsection, however, contains a proviso requiring all organizations mentioned therein to comply with the provisions of Section 8 of the bill, which provides among other things (page 18, lines 13 to 15) that a statement containing detailed information regarding any security sold shall be delivered to each purchaser together with the security to which it relates. Such a provision appears to be unnecessary with respect to Federal reserve banks in view of existing provisions of law relating to these institutions an the fact that Federal reserve bank stock is not offered for public subscription. In order to make the provisions of the bill inapplicable to Federal Reserve Banks it is suggested that Section 11 (page 20) be amended by adding a new subsection at the end thereof. A form of amendment for this purpose is submitted herewith for the considera— tion of your Committee. Very truly yours, (Signed) Chester Morrill Chester Morrill, Secretary. Inclo sure. X-7406-a PROPOSED LIENDIMITS TO S. 875 on page 2, line 9, change the period to a colon and insert the following: "Provided, however, That the term 'security' shall not include any note, draft, bill of exchange or bankers' accept ance which arises out of a commercial, agricultural or indust rial transaction or the proceeds of which ha J been or are to be used for commercial, agricultural or industrial purposes, and which has a maturity at the time of issuance not exceeding nine months, exclusive of days of grace; And provided further, That, it being the intent and .- purpose of this Act to regulate traffi c in investment securities, as distinguished from short-time obligations issued for the purpose of obtaining funds for current commercial, agricultural or industrial purposes and which are purchased by banks, insurance companies and others as a placement for short-term funds, the Commission in its discretion may by regulation or ruling furthe r determine and define from time to time the kinds and maturi ties of securities which are not included within the said intent and purpose. Insert the following additional subsection at the end of Section 11: "(f) Any security issued by or representing an interest in or a direct obligation of any Federal reserve bank." BILLS DISCOU1TTED BY THE FEDERAL RESFTTE BA= FOR IITDIVIDUALS, PART7ERSHIPS A:7D CORPORATIO7S April 1, Agregate Tra3asactiol.s to date • Federal Reserve Bank Yumber of viduals, for 7:hom paper has been counted 3oston New Yorir. Philadelnhia Clevela_ld 13 Richmond Atlanta Chicago St. Louis • Az-munt $1,733,000 22,000 Amount repaid $1,115,000 4,000 '933 Transactions today Amou2st outstandine; Amount discounter' Amount repaid $518,000 18,030 47,00') 3 47,000 19 2 .. 246,000 278,000 204,000 210,000 41,000 6g,000 37,000 0 1 147,003 12g,000 lo4,000 42,poo 37,000 3 1,172,000 1,000,0 3,815,000 2,72g,000 5,000 Minneapolis Kansas City Dallas San 7rancisco Total 91,000 172,000 1,000 1,0S5,000 B-147 (Revised Aug. 23, 1932) DIVISIO7 OF BAY:: OPERATIONS APRIL 4, 1933 April 1, 1933 Federal Reserve Bank of Minneapolis Repayments - Bricelyn Canning Co. $1,000. VOLUME 240 PAGE 27 .017.A.I.CES TO LEISER BAMCS UYDER SECTION 10 (b) OF .eitit FEDERAL RESETTE ACT April 1, Federal Paid to date Advanced Bank 'Poston 7ew York Philadelphia veland $3,748,000 20,151,030 11,295,0)0 6,036,000 $2,891,000 8,1;6,000 6,562,000 3,152,000 $857,000 11,954,000 4,733,000 2,8g4,000 Richmond Atlanta Chicago St. Louis 352,000 13,977,000 2,337,000 605,000 250,000 10,172,000 933,000 416,000 102,000 3,804,000 1,404,000 109,000 ninreapolis Kamsas City Dallas San Francisco 7,743,000 176,000 60,508,000 4,219,000 176,000 21,396,000 3,524,000 39,112,000 2,166,000 126,928,000 58,363,000 68,563,000 3,2G0,-,30 • • Amount Aggregate amount Advanced to date Reserve Total 0 DIVISIOY OF BA1TK OPERATIONS APRIL 4, 1933 1933 Outstanding today $1,000,000 114,000 today t8,000 35,0D0 Ltt C 0 FFIDE1TTIAL Yot for publication B-811 EARNINGS ADD EXPENSES OF FEDERAL RESEaVE BAITS, luaaa 1933 :onth Federal March Earnings from - Reserve Discounted bills • Bank Purchased bills Current expenses U.S.Govit. Other securities sources Total Exclusive of cost of Total F.R.currenc, 1933 Jan. 1933 Current net Current net earnings accrued earnings Ratio Less dividends and Ratio to to net charges paidTotal paid-ii Total in (current) to capital profit and loss capital Per cent Per cent $113,547 -$49,149 10.6 4.3 $96,675 1,639,591 1,428,531 28.8 2,693,635 18.7 414,64o 659,243 338,364 25.1 16.8 268,287 24.3 503,493 14.6 266,403 $80,069 1,133,161 354,125 297,829 $80,606 72,134 6,016 17,919 $158,268 924,664 185,941 285,326 $4,365 33,423 9,795 6,513 $323,308 2,163,362 555,877 607,587 $165,758 $226,633 603,766 186,449 265,325 734,851 217,513 319,300 Richmond Atlanta Chicago St. Louis 108,270 113,245 268,237 35,111 26,905 13,496 91,094 16,463 68,624 76,214 517,340 95,348 6,600 24,48:'; 24,624 7,550 210,399 227,443 901,295 154,492 133,100 103,723 321,520 131,479 156,813 53,5.66 125,684 101,559 474,205 427.4090 173,116 - 18,624 Minneapolis TATas,City 39,203 67,245 16,597 262,190 13,661 6,666 4,156 54,413 90,696 89,4o2 81,662 178,799 354 16,4y 1,765 12,202 144,114 181,751 106,160 507,604 88,574 143,853 104,113 231,049 129,340 176,028 123,913 307,557 14,774 3,723 -17,733 200,047 2,777,282 403,749 763,683 137,256 2,088,326 354,107 4,264,140 659,746 6,934,595 1,492,144 2,752,284 2,216,995 1,709,432 150,117 6,083,432 2,478,731 137,969 3,255,923 *2,047,466 200,930 4,352,795 2,043,506 -410,767 12,054,435 6,605,600 791,634 13,613,909 6,240,112 3,167,153 2,234,170 2,113,325 7,573,366 6,553,722 2,916,279 1,021,753 2,239,470 5,061,049 7,060,187 Boston Yew York Philadelphia Cleveland N of as 111F Ltancisco San TOTAL March February !larch Jan.-:lar. 1933 1533 1932 1933 1932 FEDERAL RESERVE BOARD DIVISION OF BANK OPERATIO7S APRIL 11, 1933 7,319,762 4,395,266 12.3 25.e 31.6 59,317 152,362 511,479 -33,446 4.7 13.2 12.9 -36,864 81,159 268,139 -109,112 6.1 1.1 11.5 1.0 22.5 81,700 10,262 -25,511 354,948 13.8 36,766 -51,516 -84,122 188,245 22.9 8.8 16.9 13.7 18.0 5,061,049 7,060,187 13.7 18.0 2,764,180 4,667,733 *Revised. VOLUME 240 PAGE 34 FEDERAL RESERVE BOARD WASHINGTON X,.7406 ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD April 11, 1933. SUBJECT: Securities' Bill. Dear Sir: In its telegram of April 4, 1933, Trans. 1752, the Board quoted, for your information, identical letters addressed to the Chairmen of the Committee on Banking and Currency of the Se-late and the Committee on Interstate and Foreign Commer ce of the House of Representatives, respectively, with regard to S. 375 and H. R. 4314, to provide for the furnishing of information and the supervision of traffic in investment securities in interstate . commerce. There is inclosed here-nth, for your further information, cony of another letter, regarding S. 875, being addressed today to the Chairman of the Committee on Banking and Currency of the Senate. A similar letter, regarding H. R. 4314, is being addressed to the Chairman of the Commitee on Inters tate and Foreign Commerce of the House of Representatives. Very truly yours, Chester Morrill, Secretary. VOLUNEE 240, PAGE " TO CHAIM= AND GOVERNORS OF ALL F. R. BAl.T.KS. 41 CA-t. 4,4 CONFIDENTIAL B-889 BANKS LICENSED AND NOT LICENSED TO OPEN AS OF MARCH 29, 1933 (Data with respect to nonmembers are based on such information as has been received by the Federal reserve banks) Nonmember banks** State bank members Total Number in operation on Number on . Deposits on Dec. 31, 1932 March 29, 1933 number March 29, , a333 Of banks UnreRe10f banks not at the Li- INot lid end stricted stricted of licensed licensed* censed canoed Total Total basis basis 1932 (Thousands of dollars) 218 39,015 576 29 23 6 481,855 442,839 333 493 2 36,435 5,749,163 5,712,728 143 135 538 254 669,7)47 336 7 64 57 29,492 640,255 33 1,204,673 358,715 784 69 57 12 579 845,957 !feral Reserve District 17ationa1 Banks Number on Deposits on Dec. 31, 1932 March 29, T3 Li- INot li I Of banks Of banks not censedIcensed ilicensed* licensed Total Total Boston New York Philadelphia Cleveland 33$ 678 624 562 281 533 531 414 57 145 93 148 (Thousands of dollars) 103,663 1,558,320 1,454,657 4,575,961 4,329,338 246,623 119,834 1,524,251 1,404,417 163,262 1,332,029 1,168,767 Richmond Atlanta Chicago St. Louis 354 277 618 339 252 235 370 267 102 42 248 72 738,673 598,353 642,578 616,130 2,807,123 1,978,261 597,624 546,232 139,820 26,448 828,862 51,392 33 39 156 64 26 31 83 45 496 745 514 362 427 667 483 306 69 78 31 56 691,121 655,183 885,429 955,139 682,358 676,783 2,286,030 2,213,688 35,933 69,710 5,575 72,342 37 25 54 74 31 25 45 63 18,391,207 16,527,738 1,863,469 787 neapolis Ilk Kansas City Dallas San Francisco Total 5,907 4,766 1,141 229,973 191,732 631,016 338,278 153,702 76,271 62,522 505,392 2E8,734 125,624 49,544 31,694 112,894 40,547 484,637 2,566 9 11 34,260 112,894 41,137 488,984 621 1S6 10,173,712 9,321,901 7 73 15 6 5$7 655 892 1,018 35 $95 165 590 4,347 1,112 1,623 576 517 627 1,173 521 362 156 367 42 61 851,811 11,574 7,379 2,182 129,210 *Exclusive of deposits of banks that were not in operation on December 31, 1932. **Includes State banks and trust companies, mutual savings banks, and private banks operating under State supervision. TEDERAL RESERVE BOARD -~s,DIVISItN OF BANK OPERATIONS i: 6 APRIL 1, 1933. 111 VOLUME 240 PAGE 72 e7 799 840 2,337 1,536 • April 16, 1953 PRalltEN.ABY M3iORANDUM FOE TiC. OPEN,T MAD= POLICY CONFEREN"CE, APRIL 19, 1933 The extent to which the banking system has recovered since the banks were reopened is reflected in the following sumwery: (In millions of dollars) Xan.25 Money in circulation F. E. discounts for member banks- Member bank reserves Total reserves of F. R. Banks Excess gold reserves of F. E. Banks - Combined reserve ratio of F. R. Banks - 5,611 265 2,513 3,460 1,472 65.4% Mar.8 Apr.12 6,147 7,538 428 1,414 2,096 1,776 3,529 2,809 1,315 440 60.6% 45.6% As this table shows, the improvement of banking conditions following the reopening of the banks has been almost as rapid as the preceding deterioration, due largely to the heavy return flow of currency to the banks. L larre part of member bank indebtedness has been repaid, and member bark reserlitt, after a substantial shrinkage, have again increased moderately. The position of Federal Reserve Banks has been strengthened correspondingly, The number of member banks licensed for full reopening is more than 80 per cent of the total number of member banks, and the proportion of member bank deposits released is more than 90 per cent. This still leaves, however, approxi- mately f.:,2,700,000,000 of deposits in member banks that have not been licensed, and in addition a substantial volume of deposits is still tied up in unlicensed nonmember banks. The total volume of deposits still unavailable, therefore, is probably in the neighborhood of $3,500,000,000. VOLUME 240 PAGE 79 Digitized L for FRASER • • 2 Although efforts were made to continue business operations as far as possible during the suspension of bank operations, the general level of business declined at that time to a new low level for recent years. The industries most seriously affected were those which were already operating at the lowest levels, such as the automobile, building, and steel industries. Subsequently there has been a fairly rapid recovery, but the movement thus far does not appear to have extended beyond a resumption of the level of activities prevailing early in February. Steel mill activity, which had declined from 20 per cent of capacity in the week of February 16 to 14 per cent in the week of March 23, increased again to 19 1/2 per cent in the week of April 13. Sales of automobiles showed a renew- al of the spring expansion after the bank holidays, and automobile production was resumed. The railroad movement of merchandise also showed a resumption of the usual seasonal increase. Retail trade, at least in some localities, showed marked improvement after the reopening of the banks. Commodity prices rose sharply when the commodity exchanges were reopened on March 16, but in most cases the rise was short-lived. Recently, however, there has been renewed strength in a number of important commodities, especially in grain prices which have reflected poor crop prospects. Wheat prices rose about 16 cents a bushel, or about one-third, from the low point of March to April 15; corn rose about 12 cents a bushel, or more than 50 per cent in the same period. Other commodities which have shown moderate strength recently include cotton, sugar, silk, rubber, copper, lead, silver, and scrap steel. Broad in- dexes of commodity prices, which include a large number and variety of quotations, however, remain only slightly above the lowest levels of the year. • f Bond prices, which reflected the influence of liquidation of bank assets during February and early March, have thus far shown no sustained recovery. In the security markets, as in the commodity markets, there was a rise when trading was resumed, but the higher prices were not long sustained, The pressure of liquidation from closed banks has continued, and corporation bond averages on the whole remain about 8 points below tb,e January levels, and close to the lowest levels of the year. In the absence of the usual weekly data on member banks in principal cities, the information on recent tendencies in member bank credit is limited. In the principal New York City banks there was an increase of approximately $550,000,000 in deposits between March 8 and April 12, following a decline of about $1,500,000,000 in the preceding five weeks. The greater part of the recent in- crease represents a renewed increase in the balances of out-of-town correspondents, -which were heavily reduced prior to the bank holiday. The loans and investments of the New York banks, which declined about $800,000,000 between February 1 and March 8, have shown no material change subsequently. With a large part of their indebtedness at the Eeserve Banks paid off, member banks have again been accumulating excess reserves in moderate amount during recent weeks. For all member banks the excess is probably now around 0300,000,000, although the actual volume of reserves remains about $400,000,000 less than in January. More than half of the excess reserves are again concentrat- ed in New York, due to tendency of banks in other localities to place their surplus funds on deposit in the large New York banks, but the actual ownership of the funds probably is fairly widely distributed. The return flow of currency to the banks continues to add to the amount of excess reserves, but has diminished considerably since the first of April. • - • • CONFIDENTIAL RETORT OF OPEN MARKET OPERATIONS TO MEETING OF OPEN MARKET POLICY CONETRENCE HELD IN WASHINGTON ON APRIL 19, 1933 At the last meeting of the Open Market Policy Conference held in Washingtoa on January 4, 1933, the following resolution was passed by unanimous vote: It is the sense of the Open Market Policy Conference that there should be no change in the System's policy intended to maintain a substantial amount of excess member bank reserves inasmuch as the continuance of excess reserves in substantial amounts is desirable in present conditions. In view of the return flow of currency during January and prospective gold movements the amount of excess reserves may rise considerably above the present level which is deemed appropriate under present conditions. BE IT RESOLVED, THEREFORE, That, pending another meeting of the Conference, the Executive Committee be given authority (a) to reduce the System's holdings of short-term Treasury bills in order to offset such amount of the return flow of currency as may seem desirable, provided such action does not result in any substantial reduction in existing excess reserves and (b) if necessary, to purchase Government securities in sufficient amounts to prevent member bank excess reserves falling below the present general level. It was understood informally that the resolution should be interpreted by the executive committee as follows: (1) Treasury bills up to ;125,000,000 would be allowed to run off in January to the extent that there is a return flow of currency, but not to bring excess reserves below $500,000,000. (2) When the resolution refers to the present level of reserves it means approximately $500,000,000. (3) When the resolution refers to the return flow of currency it means the return flow from the December peak just before Christmas. (4) There would be another meeting of the Conference before any increase in the System holdings of government securities above $1,851,000,000. In line with this policy, a part of the System's holdings of maturing Treasury bills was redeemed without replacement during the month of January, • • 2 as indicated below: January 11 ft 11 18 18 25 Total $35,600,000 from holdings in System Account ft F.R.B. Chicago Investment Account 2,756,000 ft System Account 30,208,000 ft 4,000,0M F.R.B. New York Investment Account ft ft System Account 15,000,000 $87,564,000 These redemptions reduced the annunt of total holdings in the System from $1,850,900,000 to $1,763,311,000, of which amount $1,558,799,500 was held in the Open Market Investment Account and the balance of $204,511,500 in the Investment Accounts of Federal Reserve Banks. Within the course of the following ten days member bank excess reserves declined to a point below $500,000,000 and in line with the resolution passed on January 4, purchases of short-term issues of Cmvernment securities were made in the market for System Account as follows: Week Ended February ft Total 8 15 22 $20,600,000 25,000,000 25,000,000 $70,600,000 These purchases increased the amount of total holdings in the System Account from $1,558,799,500 to 4'1,629,3'09,500, which figure has been maintained since February 22, 1933. Other transactions effected in the System Account since the report to the January 4 meeting consisted of: (1) Redemptions of $288,300,000 aggregate amount of maturing Treasury Bills and ';,5,234,500 - 3 3/4% Certificates of Indebtedness matured February 1, 1933, (representing the unallocated portion of exchange subscription), which were replaced by purchase in the market of $293,534,500 aggregate amount of short-term issues consisting for the greater part of Treasury Bills. 3 (2) Exchange at maturity, by exchange subscription, of $ 8,540,500 - 3 3/4% C/I due 2/ 1/33 for $8,540,500 - 2 5/8% T/N due 4/1/38 81,025,000 - 3 3/4% " " 3/15/33 " 25,855,000 - 4 % C/I " V15/33 55:170,000 - 4 1/4% " "12/15/33 $89,565,50I. $89,565,500 (3) Exchanges in the market, at advantageous rates, of $83,640,500 aggregate amount of short-term issues of Government securities for a like amount of other short-term issues of Government securities. (4) Sales to a New York City bank, in lieu of purchase from them of a large block of bankers acceptances, of $50,000,000 Treasury Certificates of Indebtedness due March 1933, which were replaced by purchases in the market of a like amount of other issues of short-term Government securities. (5) Sale to a foreign correspondent of $40,000,000 aggregate amount of Treasury Bills which was replaced temporarily by purchase in the market of a like amount of Treasury Certificates and later exchsnged for Treasury Bills when the latter were available in the market. The following is a statement of the issues of United States aovernment securities held in the System Account on December 28, 1932 and on 12, 1933: Dec. 28, 1932 U. S. Treas. Bills due Jan. 1933 tt et et et et et 1933 m 7, m m m 9, 1933 IA m ft m Feb. 1933 IAA m tt ft V. 1933 IAA m m m 23, 1933 m m m m m Mar. 1, 1933 m m m m m m 29, 1933 I II m m m m m Apr. 19, 1933 II IAL m m m 26, 1933 Ii m m m m May 10, 1933 I11 m m m 17, 1933 mI I m m m m m m 24, 1933 II ” ” ” ” ” 31, 1933 II A ” ” June " 7, 1933 II m m m m m 21, 1933 II IA m " m28, 1933 m m m m July 12, 1933 II 3 3/4% Cert. of Ind. " Feb. 1, 1933 r. 15, 33 19II 2, 1933 n n " June 15, 1933 AAA Aug. 15, 1933 m Sept. 15, 1933 11, 18, 25, 8, $ 55,60,0,000 46,208,000 69,550,000 43,200,000 38,600,000 49,950,000 35,000,000 34,350,000 0 0 0 0 0 0 0 0 0 0 13,775,000 151,025,000 123,237,500 118,725,000 0 175,983,000 Apr. 12, 1933 6 0 0 0 0 0 0 0 29,000,000 31,100,000 16,100,000 36,3'30,000 41,000,000 17,500,000 33,150,000 11,000,000 23,550,000 31,000,000 0 0 79,397,000 6 11,425,000 43,155,000 200,533,000 4 • _ • Dec. 28, 1932 66,454,000 $ 3/4% Cert. of Ind. due Dec.15, 1933 0 n May 3 % Treas. Notes 2, 193478,225,000 n Aug. n 104,952,000 1, 1934 2 1/8% n ft ft 79,277,000 June 3 15, 1935 % n Aug. n 1, 1936 3 1/4% n 0 ft Dec. 2 3/4% ft 15, 1936 19,880,000 ft fr % ft 3 Apr. 0 15, 1937 31937 0 n Feb. n 0 2 1, 1938 3 1/2% 1st L/L Bds, of 1932-47 25,025,000 ft n It 1932-47 29,000,000 4 1/4% n n 1933-38 le ft 281,591,000 4 1/4% 4th TOTALS $1,639,607,500 Apr. 12, 1933 $ 78,104,000 68,670,000 97,025,000 137,527,000 90,477,000 12,050,000 27,380,000 24,150,000 32,750,000 16,440,500 25,025,000 29,000,000 281,591,000 $1,629,399,500 On January 20, 1933, a sale was made of $2,500,000 United States Government securities from the Federal Reserve Bank of New York's participation to the Federal Reserve Bank of Dallas' participation in the System Account. This sale to the Federal Reserve Bank of Dallas represented part of its shortage in the holdings in the System Account which it was able to take over owing to its improved reserve position at that time. The following is a statement showing the amount of each Federal Reserve Bank's participation in Government securities held in the System Account at the close of business Wednesday, April 12, 1933, and each Federal Reserve Bank's holding ratio, i. e., the ratio percentage that each Federal Reserve Bank's total holdings in the Account bcar to the total holdings in the Account; also, the amount of each iederal Reserve Bank's outright holdings of Government securities: Amount of Participation Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTALS $ 92,405,000 603,510,000 133,788,500 176,540,000 48,149,000 48,625,000 193,715,500 65,331,500 47,224,000 56,248,500 38,939,500 124,923,000 $1,629,399,500 Holding Ratios 5.6711% 37.0388% 8.2109% 10.8347% 2.9550% 2.9842% 11.8887% 4.0096% 2.8983% 3.4521% 2.3898% 7.6668% e /0 100 Outright Hol,dings $ 707,000 120,296,550 3,352,100 0 0 18,000 62,836,000 500,000 7,034,350 171,600 10,000,000 0 ',204,915,600 • 5 Statement showing adjustments in earning asset holdings of Federal Reserve Banks made during March and April, owing to the low reserve ratios of the Federal Reserve Banks which relinquished either temporarily or outright part of their holdings. All of the Government securities and the bills discounted re- ferred to in this statement have been taken back by the banks which temporarily relinquished them. F.E.B. Boston purchased temporarily from F.E.B. New York $25,000,000 Gov't sec. ft it if ft tt It it ft 11 ft 11 It 145,000,000 " Chicago ft 11 ft it ft ft ft It ft ft it ft 40,000,000 Cleveland if ft ft it 11 If ft 11 11 20,000,000 bills disc. for rediscounted Boston it It t1 ft ft it It ft ft ft 25,000,000 Cleveland ft ft it ft it ft if ft it 150,000,000 Chicago it It ft ft ft 11 ft tt ft 15,000,000 St. Louis Ti ft ft ft t? ft ft ft 10,000,000 bankers' bills San Fran. purchased outright from ft ft ft ft 1/ ft it If ft It ft 10,000,000 Richmond 0,000,000 It ft Total amount given off by " " " 10,000,000 Gov't sec. 5,000,000 bankers' bills F.R.B. Boston purchased temporarily from F.R.B. Phila. ft if it it ft It It outright t ft Total amount given off by " " " 15,000,000 F.R.B. New York purchased outright from F.R.B. San Fran.$ 10,000,000 bankers' bills it It If " " 10,000,000 " "" " " " Chicago Total amount given off by" " " TOTAL ADJUSTMENTS /JOE SNSTRIvi it ft o,000,000 475,000,000 $475,000,000 • 6 =TEL PURCHASES OF BANKERS ACCEPTANCES Statement showing amount of bankers acceptances purchased by Federal Reserve Banks in their respective markets and the amount each Federal Reserve Bank received by allotment from the Federal Reserve Bank of New York during period December 28, 1932 to April 12, 1933, exclusive of any adjustments made between Federal Reserve Banks owing to low reserve ratios. Boston New York Purchased Own Market (00C Omitted) By Allotment From New York Totals $ 15,413 $ 49,711 $ 65,124 103,454 0 103,454 812 16,666 17,478 90 8,019 8,109 331 11,021 11,352 Atlanta 1,640 18,036 19,676 Chicago 42,229 56,781 99,010 Philadelphia Cleveland Richmond St. Louis 0 19,145 19,145 Minneapolis 0 17,600 17,600 Kansas City 0 9,218 9,218 16 2,833 2,849 3,524 45,447 48,971 ----, $167,509 $254,477 $421,986 Dallas San Francisco TOTALS 7 111 Classification of Issues Held in the System Account on April 12, 1933 and the Percentage of Each Issue Held in the Account as Compared With the Amount of the Respective Issue Outstanding (000 Omitted) Amount of Respective izsues ()uts',;alltling Amount of Issues Held in System Account by Classification Percentage of Issues Hela to Axwunt TREASURY BILLS U.S. Treasury Bills due April 19, TT ft 1! ft Ti Tf 26, 19 It 10, Llay ii TV 11 17, It Ti ft 24, 11 Ii 31, Ti it Tune 7, 11 Ti 21, Ti Ti TV 28, Vi tt July 12, 1933 1933 1933 1933 1933 1933 1933 1933 1933 1933 TOT.ATS cmiri±-7/-cs,TEs OF $ 29,000 31,100 16,100 36,300 41,000 17,500 33,150 11,000 23,550 31.000 75,032 80,020 75,228 75;202 60,074 100,613 75;216 100,569 100,158 75,733 38 38 21 48 68 17 44 11 23 41 3/4% 3/4% 1/2% 1/4% 1/4% 1/2% % % 1/2% % % $ 269,700 $ 817,845 33 $ 79,397 116,425 43,155 200,533 78,104 68,670 $ 239,197 373;856 469,089 451,447 254,364 473,328 33 1/4% 31 1/4% 9 1/4% 44 1/2% 30 3/4% 14 1/21 2 $ 586,284 $ 2,261,281 26 % $ 97,025 137,527 90,477 12,050 27,380 24,150 32,750 16,440 ‘L5 244,234 345,292 416,603 365,138 360,533 508,329 834,401 277,517 39 39 21 3 7 4 4 6 3/4% 3/4% 3/4% 1/4% 1/2% 3/4% % % $ 437,799 $ 3,352,047 13 $ 25,025 29,000 281,591 $ 1,392,227 535,983 6;268,095 1 3/4% 5 1/2% 4 1/2% $ 335,616 $ 8,196,305 4 aiDD3T=NMS 2 % Cert. of Ind. due May 2, 1933 Ti Ti Ti Tune 15, 1933 1 1/2% Ti Ti ii Ti 4 % 11 Aug. 15, 1933 11 11 11 1 1/4% Ti Sept.15, 1933 11 11 3/4% tt Dec. 15, 1933 Ti tt IV 4 1/4% 11 " 15, 1933 TOTALS TREASURY NO _S % Treas. Notes due May 3 2, 1934 ft 2 1/8% Ti 1934 1, " Aug. 11 IT 3 % June 15, 1935 f! Ti 3 1/4% ft Aug. 1, 1936 11 2 3/4% ft Dec. 15, 1936 VP ff 3 % 1! Apr. 15, 1937 It ft ft 3 1/4% Sept.15, 1937 ft 2 5/8% Ti Feb. 1, 1938 TCTALS LIBERTY- MAU BONDS 3 1/2% 1st L/t Bds. of 1932-47 4 1/4% " " " " 1932-47 If 4 1/4% 4th " " 1933-38 TOTALS AND TOTALS $1,629,399 $14,627,478 % 11 1/4% =1010111=111.11S7.1=1.11=MM Total of all issues of Treasury Bills, Certificates, Notes and Bonds outstanding $20,708,733. Percentage of issues held in System Account 7 3/4%. I 8 MATURITIES OF GO v1-1-ini0TT SECURITIES LD It S1STM1 ACCOUNT ON APRIL 12 1933 SHOET-'TM ISSIES Treasury Bills, Certificates and. Not es MATIJRETG WIT= 1 YEAR Within 3 months It 3 to 6 6 "9 " 9 "12 " $465,522;000 243,688,000 146,774,000 0 $ 855,984,000 TOTAL MATURITIES WITIEN 1 YEAR 234,552,000 - MATURING 1 TO 2 17E/IRS /,,IATURII\TG 2 TO 3 YEARS 90,477,000 MATURING 3 TO 4 ITAIRS 63,580,000 MATURING 4 TO 5 YEARS 49,190,500 TOTAL - - - -- t1,293,783,500 LIBMTY LOAN BONDS First 3 1/2% Liberty Loan Bonds 11 If " 4 1/4% (Due rune 15, 1947 Callable on or after Dec. 15, 1933) Fourth 4 1/4% Liberty Loan Bonds (Due Oct. 15, 1938 Callable on or after Oct. 15, 1933)* t 25,025,000 29,000,000 $ 54,025,000 281,591,000 CRAND TOTAL --- $1,629,399,500 *As no call . was d.sued on April 15, 1933, callable date has been changed to April 15, 1934. 9 STA= -M.T SHOWING EAITINGS OF ALL ira)MAL R ES _E_RITE BAMS FOIR TIE FIRST THREE MONI'HS OF 1933 Gross Earnings Boston 4, 14) 653,502 Current Expenses and Net Deductions Fran or Net Additions to Net Earnings $ 702,651 Available for Depreciation Allowances, Reserves, Surplus and Franchise Tax r Q 49,149 (a) New Ybrk 4,465,494 2,625,903 1,839,591 Philadelphia 1,227,820 813,180 A14,640 Cleveland 1,259,161 990,758 268,403 Richmond 441,458 480,322 38,864 (a) Atlanta 471,284 390,125 81,159 Chicago 1,596,852 1,328,713 268,139 St, Louis 379,494 488,606 Minneapolis 371,748 334,982 36,766 Eansas City 2'5,154 496,670 51,516 (a) Dallas 282,850 366,972 84,122 (a) -.....,618 871,373 188,245 $12,654,435 $9,890,255 2,764,180 San Francisco TOTAIS (a) deficit 109,112 (a) C 0 NFIDENTIAL Not for publication B-811 EARNINGS AIM EXPENSES OF FEDERAL RESERVE BAS, MARCH :onth Federal . Amieserve 11F Bank Boston New York Philadelphia Cleveland of Earnings from Discounted bills Furchased bills - March - U.S.Govit. secur ities Current expenses 1, Other sources 1 Exclusive Total of cost of F.R.durrenz Total 1933 Mar. 1933 Jan. 1933 Current net Current net earnin-'s earnings Less accrued Ratio dividends and Ratio to to net charges paidTotal Total paid-in (current) to in capital profit and loss capital per cent Per cent -$49,149 $113,547 4.3 $96,675 10.6 1,428,531 28.8 2,693,635 18.7 1,839,591 414,640 338,364 25.1 659,243 16.s 258,287 24.3 268,403 14.6 503,493 $50,069 1,133,161 354,125 297,829 $80,606 72,134 6,016 17,919 $158,268 924,664 185,941 285,326 $4,365 33,423 9,795 6,513 $323,306 2,163,382 555,877 607,587 $165,758 603,758 186,449 265,325 $226,633 734,851 217,513 319,300 Richmond Atlanta Chicago St. Louis 108,270 113,245 268,237 35,111 26,905 13,496 51,094 16,463 68,624 76,214 517,340 95,34s 6,600 24,483' 24,624 7,550 210,399 227,443 901,295 154,492 133,100 103,723 321,520 131,479 156,813 125,884 474,205 173,116 53,586 101,559 427,090 - 18,624 12.3 25.8 31.6 59,317 152,362 511,479 4.7 13.2 12.9 -- -33,446 -- -38,864 81,159 268,139 -109,112 Minneapolis s City as San Francisco TOTAL March 1933 February 1533 March 1932 Jan.-:.!ar, 1933 1932 39,203 67,245 18,597 262,190 13,661 6,666 4,156 54,413 90,696 89,402 81,662 178,799 354 16,43 1,765 12,202 144,114 181,751 106,160 507,604 83,574 143,853 104,113 231,049 129,340 176,028 123,913 307,557 14,774 3,723 -17,733 200,047 6.1 1.1 -22.5 81,700 10,282 -25,511 354,948 11.5 1.0 -13.8 36,766 -51,516 -84,122 186,245 2,777,262 403,749 763,683 137,256 2,088,326 354,107 4,264,140 659,746 6,934,595 1,492,144 2,752,284 2,216,995 1,709,432 7,319,762 4,395,286 150,117 137,989 200,930 410,787 791,884 6,083,432 2,476,731 3,167,153 2,916,279 3,255,923 *2,047,466 2,234,170 1,021,753 4,352,795 2,043,506 2,113,325 2,239,470 12,654,435 6,605,600 7,573,386 5,081,04 13,613,909 6,240,112 6,553,722 7,060,187 22.9 6.8 16.9 13.7 18.0 5,081,049 7,060,187 13.7 18.0 2,764,180 4,667,733 Fir FEDERAL RESERVE BOARD DIVISION OF BANK OPERATIONS APRIL /1, 1933 *Revised. 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