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My dear Sena. tor~
Referring ::~.gain t:o o•.tr telephone c'mversation on
Sa.turda.y1 I would state that some of the c}'l.a.rgcs which have
been zrade a.gp..inst tho t'edaral Re~orve Board and against its
members personally) which have appeared in c~.rtain papers
and in some public speeches1 do not appear to me to be susceptible to argumentative reply. Tl:.~y are made without giving any facts to su~por.t them and ehow either total ignorance
of the subject on t~e part of the ;Jl"Oponents or else wanton
disregard of actual facts. Some) such as those made in the
newspaper which 1 a.m enclofling wj th this letter1 are libelous
and the best reply to them is to bra.nd them with the short
and ugly word •
I enclose copy of an address which I made before the
Cleveland (Ohio) Chamber of 0ommerce on the 16th of September
last~ which explains fully the Boa~d's attitude at trat time.
Perr...:a.ps you may not have tlme to read all of thi.s addr.ess but
I hope that you will find tims to r~ad pages 5 to A4.
Owing to the exigencies o:: Treasury financing) the war
time Federal Reserve rata of 4~ wa~ not advanced until December,
l9l9J although after the first of July J 1919J there was a rapid
advance in the rra.rket rate for money and the best grades of commercial paper sold in the oyen market at from 7% to 8%. The
customers of the member banta were willing to pay full rates for
accommodation and urged upon the ban~s as a reason for easy credits that they were willing to pay high rates and the banks in
turn could rediscount with the Fed~raJ. Reserve Banks at a very
substantial profit. On or about September 15, 1919 1 the total
amount of invested assets of the Fed.era.l Reserve Banks, including
bills rediscounted for memb~r banks) acce!lt.ances bought in the
Open market and Government obligations held) amounted to about
$2~ 350., 000., 000.. An expansion of bank credits was going on alJ.
the time at a rate which has never been equaled in the history
of the country and far in excess of any war time expansion.
Federal Reserve Bank rates were advanced to 4i~ early in December., 1919., but the advance was negligible and had no effect.
The latter part of January 1 1920, rates were advanced to 6%. On
the 23rd of January1 1920, the total rediscounts and earning
.
assets of the Federal Reserve.Ba.nks amounted to about $3 1 300,000_.000)
an increase since September 15, 19191 of $950~ C001 000. The rate
of expansion for that period was nearly 50%. At the same time the
reserves of the Federal Reserve Banks had declined to about
$2, ooo. . ooo.. 000, of which only about $1 1 9201 0001 COO, were gold reserves.
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The pyramiding of credits was proceeding at an alarming degree
and it was evident that if exp::1.nsion should continue to procas::.
at such a rapid ra te 1 it would bo me :rely a qu.estion of time until the credit structura of tho country would explode.
It should be noted that ?Vcm :3fter the rates wer.e increased and after ths statement of May., 1920 we.s nade 1 whi~h
atatement appears in my Cleveland speoch and is the basis for
most of the a tta.cks which are roade wo c'n tl:e Board, although H
is rarely quot~d., the expansion of loans and curr0ncy contin11Gd
in a more moderato degree. On the 15th of January 1 19201 ths
total loans and earning assets of the Federal Reserve Bank~ amounted to about $3.-0001 000,000. These incrsased gradually and
steadily until the 5th of Novombor, wh.:::n they amounted to
$3 1 400,0001 000 .. On Ja:wary 15th, 1920, the volume of Federal
Reserve notes outstanding was about $2J 800.~~ 0001 000 and this note
issue also increased steadily until it reached the peak on December 24, 1920 of $3,400Jooo,ooo. You will remember that the gr~at
price reactions which t:o<:Jk p:'.a.;o aJ.l occ1;.rcd before the 5th of
November or ths 24th of December. Uholesal3 prices reached
thair peak a.'bcut the middle of May, 1920, being at trat time about
272 as against 100 for ths year 1913~ AftJr the middle of May
wholesale prices declined steadily, although tho loans of the Federal Reserve Banks and Federal Reserve note issues increased until
November 5th and Deceml)er 24th rGspectively.
Since the close of the year 1920 tJ.el":::. has been a marked
reduction in the loans and note issues of the Federal ReservJ Banks
combined} although th~.s reduction has been by no means uniform at
all the banks. As a matter of fact the liquidation in the NBW York
district has been about equal to that in all other districts combined_
The rediscounts and advances of the Federal Reserve Bank of NGw York1
a.t the close of business on June 30th, 1921, were 1 ower than they
had been since July 101 1918. 1 enclose herewith copies of the
weekly statement of condition of all Federal Reserve Banks for
July 9th, 1920 a.nd July 6th, 1921 and would call your attention to
the fact that on the earlier date the Fed.eral Reserve Bank of Naw
York had total bills discounted and bought amounting to $1,001 1 664,000,
while on July 6th, 1921, total bills held at the Federal Reserve
Bank of New York were $461,535 1 000, a reduction of $540,2791 000.
If comparison should be made a week earlier in each case~ it would
be sean that a reduction took place of $566 1 660,000. Bills held at
the Federal Reserve Bank of. New York increased from June 29th, 1921
to July 6th, 1921 from $423,169,000 to $461,565,0CO, a n~t increase
for the week of $36,416,000. The detail is as follows:
Ju..ly 9. 1920
Secured by u. S. Bonds and
certificates
Commercial paper, etc.
Bills bought in open market
$544,229>000
303, 454, 000
154.131 000
$1,001,864,000
p
July 6, 1921
$212, 999.. 000
236 J 970, 000
11,616,000
$461, 535, 000
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Some of those who have complained of the curtailment o!
credit live in the Richmond and Atlanta district~ and it may be
interesting, therefore, to ascertain just wrat the Federal Reserve
Sanks in those districts are doing. The enclosed s1ataments show
that on July 6th, 1921 1 the Fede~al Reserve Bank of Richmond had
total bills on hand amounting to $105,974~ 000, against $110,0521 000
on July 9thJ 19201 but there was a reduction between these dates
of $15,8301 000 in the amount of notes secured by Government obli~
tionsJ which probably represents sales of bonds and certificates,
while lo&ns on commercial and agricultural paper increased from
$58,344,000 on July 9th, 1920 to $74,280,000 on July 6th, 1921.
The Federal Reserve Bank of Atlanta shows between July 9th}
.1920 and July 6th, 1921, an apparent reduction in total loans of
about $17,0001 0001 but you will notice that commercial and agricultural paper increased from $61,611,000 on July 9th1 1920 to
$65, 754, 000 on JUly 6th, 1921. When the difference in the value
of cotton is considered it is evident tmt the real amount·of accommodation given is considerably greater now than was the case a year
ago. It should be noted1 however, that the decrease in the total
loans of the Federal Reserve Bank ~f Atlanta i·s not as graat as it
appears~ for the bank on July 6th 1 1921 reports United States Bonds
and Notes owned amounting to $101 1421 000 against $117; 000 on July
9th~ 1920.
This increase represents bonds and notes purchased under
resale agreemen.t from certain member banks which had previously been
using the bonds as collateral for loans with the Federal Reserve Bank
ot Atlanta, so the actual reduction in the amount of the Bank's total
loans .is only a bout $7 1 0001 000 instead of $17 iOOO, 000..
.
As your state is in the Sa.n Francisco district some figures
relating to the Federal Reserve Bank of San Francisco may be of
interest to you. The total loans of the Federai Reserve Bank ot
San Francisco. on July 6th) 1921 amounted to $1&1, 203, 000 as against
$199,003~000 ¢n July 9th1 1920. This reduction, however, is made up as
follows: a decrease of $4J446,ooo in the amqunt of paper sec~red by
Government obligations and. a decrease of $44,687,000 in the amount of
bills and acceptances bought in the open narket •. Commercial and agricultural paper.under rediscount for mamber banks amounted on.July 61
1921 to $114~623, 000 against $1031 2901 000 on July 9th_, 1920, an increase
in eoliCercial,; a.gricul tura.l and livestock l oa.ns. of $11,333., 000.
.
Let us now consider the figures for the system as a whole. On
July 9th} 1920 the total bills on hand at a.ll Federal Reserve Sanks
~ounted to $2 1 934,;184., COO.
On July 6th1 1921 this total amounted to
$1~832 1 :4991 000"' a de.crea.se of $1 1 1011 685,000.. The deta.U o.f this decrease is as follows: On paper secured by Government obligations,
$621~ 973., 000 (which can be accounted for in part by Government red$mptionG of bends and. Treasury certificates and private purchases
for investment account); in bills boug)lt in the open narket}
$341,455,000. {While the volume of the acceptance business has decline~·auring the past twelve· months, this decrease is accounted for
principally by the greater demand for first class accspt~nceson the
part of member and non~ember banks and trust companies), The tot~l
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of agricultural, commercial and livestock paper on hand, rediscounted
for member banks; or. .;;:ly 6th 1 l921 >vas $l 1 J.26,96b 1 0001 as against
a total of $1#265, 243.7 000 on July ~~t.h" 1920., a decrease of on1y
$136,257,0001 which is rrore than acco·wnted !or by the decrease in
the holdings of paper of t:bJ.s kind b~ the Federal Resarve B.'tnks of
Boston, New York and Chicag'>.
The Federal Reserve Board has made no suggestion whatever that
any Federal Reserve Bank should unde:o·take to force farmers to sell
their cotton before the new crop CClmeG in and telegraphj.c inqu.iry
made of the Federal Reserve Banks in the cotton producing districts
shows that no such restrictions have been made by the Federal Reserve
Banks. I enclose copy of a statement by the Board which appeared in
the papers on the morning of June 6th, 1921 and would call your attention to the last paragraph of that statement. This is the only
statement which the Board has given out which relates in any way to
loans on cotton or other farm products.
I also enclose mimeographed copy of recent correspondence between
the Federal Reserve Bank of At1anta. a.nd one of its member banksJ from
which yo~ will see that the Governor of the Federal Reserve Bank calls
the attention of his correspondent bank1 which writes that it has notified ·its customers who are borrowing on cotton to sell it and pay their
notes by July 1st, to the fact that this is a matter which the Federal
Reserve Bank has nothing to do with ani tmt it ha,s made no such dema.nds.
!.also enclose copy of a letter written by the Governor of the Feder'l-1
Reserve Bank of Atlanta to the Commissioner of Agriculture of the State
of GeorgiaJ dated September 17~ 1920~ in which he states what the Bank's
policy will be regarding loans on cotton.
.
The Comptroller's abstract No. 130~ ma.de. up from reports rendered
as of April 26' 1921, shmvs that the total rediscounts with the Federal
Reserve Bank of· Richmond by national banks in South Carolina on tl'Bt
date were $12,506, OOOJ. while total loans and discounts of the South
Carolina. national banks on the same date, exclusive of the amounts re.discounted, amounted to $75,206} 000. Adding these two items together,
· we find t.ha t the South Carolina national banks had total loans and discounts on Aprll 28~ 1921 of $87,714,000 and of this amount they had redi~cou.nted with the Federal Reserve Bank $J.21 5o6, 000., or 14.31£ of their
total loans. At the same time the total reserves carried .by all national banks in South Carolina with the Federal Reserve Bank of Richmond
Deducting the loans to· state member banks,
amounted to $3 1 829 1 000.
$2,285,000, the loans of the Federal Reserve Bank of Richmond to
national banks in South C:lrolina on June 30th, 1921, amounted to
$18,820,0001 an incraase of $6, 314., 000 since April 29th 1 "l.nd the total
loans to all member banks in South Carolira. on June 30th, 1921 by the
Federal Reserve Bank of Richmond amourited to $21,105,000, against
$17, 316., 000 on June 30th, 1920., and yet the Federal Reserve Bank of
Richmond is charged vdth restricting.,loans :\.n South Carolina. I may
add that the Federal Reserve Bank~ of Richmond and Atlanta were both
heavy borrowers during the latter half of 1920 from other Federal
Reserve Banks and the Federal Reserve Bank of Richmond. ha.s recently
shown loans as high as $251 000,000 from the Federal Reserve Bank of
New York. lt is worthy of note also that the Federal Reaerve Bank of
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Richmond has never had the progressive rate and has never
had a higher rate than 6%. The le~l rate of interest in
South Carolina is s%. So you ca.n see that there is a margin
of profit to member banks in that state of two full points or
33 1/3 per cent in their rediscount transactions with the Federal Reserve Bank.
·
In conclusion I wish to say that the attitude of the
Federal Reserve Board toward agriculture has been greatly misunderstood and grossly misrepresented. The Board has always
advocated as liberal a policy as possible, consistent vii th the
terms of the Federal Reserve Act and with reasonable banking
prudence toward agricul ture 1 which it recognizes as the basic
industry of the country and the foundation upon v;hi ch all other
industries necessarily rest. The trouble is that the loans wade
by the member and non-member banks throughout the country are not
well distributed and in a munber of cases have rot been judiciously made. Something over a third of all member banks are not borrowing from the Federal Reserve Banks at all :md of the tv1o-tnirds
v1hi ch are borro•dng, more than one-half are borrowing very large
amounts. Many of these banks have extended themselves so far that
they do not feel warranted in making any new loans, reg::trdless of
the disposition of the Federal Reserve Ba••ks to rediscount the
paper. They do not want their names on any more paper than they
already have. They do not like the idea of increaang their contingent liability. In view of the fact tl:a t the twelve Federal
Reserve Banks are independent bodies corporate and are controlled
and directed each by its own board of directors, subject only to
the general supervision of the Federal Reserve Board, whoae authority with respect to discount is confined principally to defining
eligible paper in accordance 'Nith the terms of Section 13 of the
Federal Reserve Act 1 it seems to me that the st~tement which manyJ
both in Congress and on the outside 1 urge be issued by ~he Federal
Reserve Board) stating that the Federal Reserve Banks will adopt
certain policies in connection with the rediscounting of agricultural paper 1 would have to be :rra.de by the Federal Reserve Banks
themselves. The Federal Reserve Board ms no pow~r to interfere
with the discretion given or the responsibility imposed by law upon the directors of a Federal Reserve Bank with respect to passing
upon the merits of eligible paper offere4 for discount.
Congress did not establish a central bank in this country.
It established twelve banks under the general supervision of the
Federal Reserve Board, which does not exercise banking functions.
These functions are exercised exclusively by the Federal Reserve
Banks. The Board has taken up repeatedly vii th the various Federal
Reserve Banks complaints of a gener.al ~ture regarding the restriction
of agricultural credits and the banks have always rrade a good showing
of what they l':a. ve done for agriculture. Very few specific cases have
been brou~ht to the attention of the Board where eligible agricultural
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paper has been refused for rediscount and in those ca~es
it seems that the management of the Federal Reserve Banks
have justified themselves in the refusal.
In some agricul t1ual states there waa two years ago
. unfortunately great speculation in ia.rm lands and member and nonmember banks in those localities loaded themselves up with a
l~rge volume of real estate mortgages, which paper is not eligible for discount under the terms of the Federal Reserve Act,
and many of them have sustained losses in deposits. In the present circumstances, they are endea vol~ing to work out from under
the tremendous load which they oughli never to have taken on and
do not feel able or else are indisposed to extend accommodations
for agricul tura.l purposes ·which ordJ.na.rily they would be glad to
do. ·In almost every state, howeyor 1 there a:-e a number of ultraconser.vative banks. which have strong reserves wnich are not borrO'i1ing and which ought to do their part in assisting agriculture at
the present time.
In ·the present condition of .the country it seems to me that
the strong position of the Federal Reserve Banks should be a source
of comfort rather than the cause of so much reckless criticism.
The Fed~ral· Rese·rve Banks cannot be expected to encourage their
m=ber banks to make loans to the public on the b:l.sis of V3.lues
which obtained eighteen months ago. The inability of 3.ny banking
system to maintain values in the face of a world-wide decline is
.evidenced ·by the plight of the· banks in Cuba which were heavily
loaded Up with loans on sugp.r at high prices. Surely., the return
of bet.ter conditions in this country would mt be expedited by
having· American banks in the same condition trat Cuban banks are
. in today.
.
By way of· summary .. let me state that while the Federal·
Reser.ve Act imposes a general limitation upon the maturity of
paper ·eligible for discount of three months, it is provided in
S~ction 13 "That notes, dra.f ts and bills drawn or is sued for a.gricW. tu.ra.l purposes or based on live stock and having a. maturity not
·exceeding six months, exclusive .of days of grace~ may be discounted
in an amount to be limited t~
percentage of the assets of the Federal Reeerve:Bank, to be ascertained and fixed by the Federal Reserve
·B~rd 11 • Had the Board been: unfriendly· to agriculture, as many of
it.s ·critics claim it has been1 i t could easily have limited the
amount of . six months agricultural. paper ••hi ch could be disc'ounted .
by a Federal Reserve Bank to a very small perc~ntage of its total
assets. But in order to offer the fullest possible accommodations
to agriculture~ the Board more than five years ago fiAed this percentage at 9~ and ha.e never changed it. lt has already .been pointed
out that the decrease of more than $1,100~ 0001 000 which has t..a.ken.
place in the loans ~nd e~rning assets of the Federal Beserve Banks.
is represented maioly by a. reduction in loans secured by Government
obligations a:nd by bills and acceptances bought on the open market.·
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The actual reduction in cox.!li'Ilerc~.a.l .• agricultural and live
stock paper) red. is counted i or memoox- balfrsJ from July 9th; 1920 to
July 6th1 1921, was $133,257}000. This reduction is more than
accounted for by the decrea.se of pap,:;)r reclisco1.1nted by ba.nks in
Boston, New York and Chicag~. The b~nk liquidation which ha~
taken pla.c~ has been maidy in finandal and industrial centers
and the figures of the Fe~e~.l Reser.ve Be~~s do not indicate that
there has during the past twelve months teen any decrease in
iederal Reserve· acco~~odations to banks in the agricultural
and live stock districts, but on the controry there has been a.
considerable increase) as ycu will sea from the official Qtatements encloae~ herewith.
I enclose ed.i torial f~'ljm the Mewo~~is Commercial Appeal,
which I recei vel! this mo!'Iling1 which takes issue with scme of
the sta.temant·s which have recently been made on the floor of the
Senate.
Very truly yolArs,
W. P. G. HARDING
G o v e r n o r ..
(COpy)
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for publication Sunday morning, July
Federal Reserve :Bank of
. Gold and gold certificates
Gold Settlement Fund - F. R. :Board
Gold with foreign agencies
'l'otal gold hel4 by banks
Gold with F. R. ,Agents
Gold redemption fund
Total gold reserves
Legal tender notes, silver, etc.
Total reserves·
:Bills discounted: (a)
Secured by Govt. war ·o:W.igations
All other
:Bills bought in open market lb)
To tal bill.s on hand.
tJ. S. Government boilds
u. S, Victory notes
U. s .. Certifi.ea~:s of .indebtedness
Total earning assets
· »an1t premises
Un.eollected items and otbar deductions tram gross deposits
~ Redanption fund against F • R.
:Bank notes
All other resources
TOTAL RESOURCES
(a}. Inclules bills discounted for
other F. R. :Banks, viz:
.
(b) Inclu.des bankers' acceptances
bought from other F. R. :Banks:
Without their endorsement
~·.·
11, 192.0;
st. 1276b
not earlier.
Total
168, 9J9
402,76o
111, i
45,488 52,959 118,911 49,243
S,OJl
70,418
9. 5
9
24,~?
.
61,825 44,650 4o,J01
.
1,072
3,101 1,300
871
451
573 1,820
523
416
916
586
6b5
12,293
282
1,422
194
145
187
100
461
282·
.· 51
201
171
326
3,822
496,149 1,884,413 46o,618 569.122 262,385 239.904 964,114 254,486 162,594 272,133 185,84o 426,619 6,178,377
35,99.4
4,918
.
36,096
54,494 .
10,014
126,584
-·
10,008
24,94o
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St. 1276c
Released for publication Sunday morning, July 11, 19m; not earlier .. ·
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RESOURCES .AND LI.ABILinES OF THE F.E.DERAL RESERVE BANKS AT CLOSE OF :BUSINESS JULY 9, 1920 •
("In. thousands of doliars)
LIABILITIES
Federal Reserve :Bank
. Capital paid-in
SUrplus
Government deposits
nue· to manbers - Reserve account
Deferred availability items
Otber d~osits, including foreign
.government ce~di: ts
10tal gross deposits
F. R. notes in actual. cir~ulation
I'. R.,. Bank notes in circulation net liability
·.All other ·liabilities
.l!'OT.AL LIABILITIES
Total
Boston New York Phila. Clevel. Ricbn. Atlanta Chicago St.Louis Minn .. Kans.c.. Dallas San Fi-an.
7, 532
24,675
8,326 .,..10,~161 4,873
3. 788 13,290 4~257 3:279 4~312
3~ 757
6~389
94,639
12,351
51,308 13,o69 13,712 8,o67
1,050 23,917 5,884 5,178 8,395 4,152 11,662 164 745
52
612 3)691 · 295 3,4o4
882
750 · 1,011
4lo
1,281 1,o6o
2,471
15' 919
118,186
738,232 106,197 143,114.59,876 49,837 261,308 63,598 46,169 82,481 57,343 113,363 1,839,7o4
113,276 52,646 59,395 47,219 23,334 73,863 39,233 18,599 58,143 27,966 28, 1&;) . 594:434
52,56o
2t, 974
Ratio of total reserves to net deposit snd
F.R..note liabilities canbined,per cent 51 ..1
3, ~4
2,949
1,6 73
1,265
5. 799
1, 841
1,212
2,22~
1.132
l.IG.o
6, 993
55, ltt
48.4
MEMORANDA
cOnt:ingent liability as endorser on Discounted paper rediscounted with
other F. R.. :Sanks
126,584
COnting~t iiability on bills purchased for foreign correspondents
1,168
J'. R.. ·notes outstanding
F ~ It. ::notes held by banks
·F.:..11.. notes ~ actual circulation
297,607
10.215
287,332
6,089
1,280
"1,312
DISTRI:BUTION OF :BILLS AND U..
>f.l)ill:s discounted
2 llills bought in open market
"u. s. certificates of indebtedness
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Federal
Reserve Bank of St. Louis
Within 15 days
l, 43 7J 411
105,303
26,705
16 to 30 days
285,693
67.968
6,6oo
752
768
416
s. CERTIFICAn:S OF INDE:BTEDNESS :BY MATURITIES
31 to 60 days
61 to 90 days
Over 90 days.
To"bal
486, 6o3
272, 743
79, 143
. 2, 561, 593
16}, 173
36,147
372, 59~
19,4oo
36.533
. 192, 7o4
281,942
16,217
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Re1ea.sed for publication Friday morning, J~ly 8, 1921; nOt earlier.
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RESOURCES M'D LlABILITIES OF THE F.EDEHAL BESERVE BANKS AT CLOSE OF BUSINESS JlJLY 6, 1921.
St.2l07b.
R E S 0 U R CE S
(In thousands of dollars)
Total.
Boston New York Phila. Clevel. Riehm. Atlanta Chicago St.Louis Minn. Kans.Cy. Dallas San Fran.
Federal Reserve Bank of
Gold and gold certificates
2,703 4,586 20,578 2,798 8,377 2,110 8,674 19,673 338,957
253,815 1,793 6,029
7,821
Gold settlement fund- F.R.Board
32.943 57,397 58,446 20,046 9.471 71.395 17.192 7.734 35.§93 3.312 33.965 4o3,146
55.552
Total gold held by banks
63,373 286,758 ·59,190 64,475 22,749 14,057 91,973 19,990 16,111 ·37,&>3 11,986 53.638 742,103
Gold with F. R. Agents
181,044 509,0)8 134,428 185,6o4 38,023 59,832 230,213 48,572 20,031 33,6o7 14,751 142,862 1,598,265
36.000 9.631 4.514 § ... 253 5.589 35.?32 3.820 3.258 3.317 2.691 9.418. 137.438
Gold ~tion fUnd
15.655
Total gold reserves
260,072 832,056 203,249 251+,593 69,025 79,478 }57,478 72,3S2 39,400 74,727 29,428 205,918 2,477,806
Legal tender notes, silver, etc.
12.921
3.118 6,233. 4,424 1.008 16.803 12,699
903 3.967 5.772 3.032 . 153.4o5
16.525
Total reserves
276,597 9o4,977 206,367 26o,s26 73,449 86,486 374,281 85,081 40,303 78,694 35,200 208,950 2,631,211
Bills discounted: (a)
Secured by u.s.Gov't. obligations 31,9o4 212,999 84,o43 54,259 29,658 35,063 106,366 32,556 7.757 24,181 10,470 45,121 674,377
All other
53,935 236,970 39,317 98~005 74,280 65,754 218~535 54,597 65,977 55,319 49,674 114,623 1,126,986
Bills bought in open ~ket
7.905
11.616. 3.390 1.228 2.036
962 2,306
104
- :.~;
.,ZZ •.. Uq 1,459
31.136
Total bills on hand
93,744 461,585126,750153,492105,974101,779 327,2.07 87,257 73,734 79,520 6o,254 161,2031,832,499
u.s. bonds and notes
555
3,270 1,627
843 · 1,233 10,142 4,490 1,153
145 8,86g 3,979
305
36,610
U. S. Certificates of indebtedness:
One-year certificates (Pittman Act) 18,936
52,776 26,780 21 1799 7, 26o 14,564 36,112 11,568 5,4&> 8,320 2,4oo . 91 8&> 215,875
All other
36 . 9,531
612
13
1
55
225
51
26
1
10.'5'51
To'tal earning assets
113,271 527,162 155,769 176,147 114,467 126,486 3671864 100,203 79,410 96,734 66,633 171,389 2,095,535
Ba..'1k premises
3, 716
5,375
529
2,174 2,051
752 3,878
627
657 2,659 1,883
56o
24,861
5~ Redemption fund against
·'F. R. Bank notes
772
1,864
700 1,239
363
511 1,786
523
275
916
236
494
9,679
. Uncollected items
50,190 141,927 45 1878 50,808 43,379 19,280 66,642 · 28,978 15,119 38,728 21,848 34,385 557,162
All other-resources
377
2,587
25G
777
447
- 680 1.gqo
495
111
491 2,554 2,420
1),088
TOTAL RESOURCES
{a) lneludss bills discounted for
other F. R. Banks, viz:
444,923 1,583,892 4Q9,502 491,971 234,156 234,195 816,341 215,907 135,875 218,222 128,354 418,198 5,331,536
10,450
31,015
41,465
~
~
. 00
jteleased.
-
for pu.b1ication Fridtq morning, July 8, 1921; not earlier.
~·· ~-l:¥1;
.
RESOURCES AND LIAIUL:rliES OF THE·FEDEBAL RESERVE B.A..~ AT CLOSE OF 130SINESS JULY 6, 1921.
St.2107c.
(In thousands of dollars)'
LIABILITIES
:Boston New York Phila. ClE~vel. Riclm. Atlanta.\ Chicago St~Louis Minn. Kans.cy •. Dallas Sa.n Fran.
Total
r: . ~ral Res~rve l3a.nk
::C&J)J. tal. pa.id 1n
7,.911
26,896 8,613 ll,o47 5.322 4,097 14,259 4,512 3.553 4,346 4,222 7.325 102,103
t$arplus
16,342
59..318 11.564 aa.~63 11,026 8, 708 30,536 9,114 1,303 9.330 1,113 15,207, 213,824
\Reserved for Govt. franchise tax
2,272
17,100 2.737 1·,633 1,679' 2,584 8,011
982 1,335 1,587
...
2,145
42,065
~ n.posits:
· ~ernnent
856 1,873 6,62~ 1,623 1,844 2,615 1.867 1,7}4
}4,024
2,006
7.4o9 1,923 3,652
llanber ba.nk - reserve account
109.74o 651.727 100,065136.991 54.176 43,807 229.515 6o.952 41,929 71,455 42,312109,0881,651.757
All other
1,122. 11,907 1,230
775
462
355 2,253
782
&>5
522
378 6,965
27.371
Total deposits
112,868 67l,o43 103,218 141,418 55.501 46,035 238.390 63.358 44,378 74,599 44,557 117.787 1. 713,15?
F. R. notes in act'Ual circula-tion
254,169 684,615 224,513 254,854 120,202 149,636 454.379 lo4, 739 59,613 78,633 45,}98 241,165 2, 671,916
'
. J'. a. knk notes in circulation net liability
9.509
28,096 9.827 16,133 5,6o6 9.438 17,450 6,370 5.364 14,518 4,362 6.6}0 133.303.
. Deferred a~ilabili ty i t~s
4o,901
93,662 42.370 43,711 33,82S 12,977 50.190 25.975 1},087 33.956 21,569 26,229 438,455
. All other liabilities
. 951
3,162
66o
91?
992
720 3,126
857 1,242 1,253 1,13] 1, 710
16,718
444,923 1,58),892 4o9,5Q2 491,971 234,156 234,195 816,}41 215,907 135,875 218,222 128,354 418,198 5.331,536
TOTAL LlniLITIES
MEMORANDA
Batio of total reserves to deposit and F .R.
66.8
110te 1ia.bili ties ccmbi.n£3~ per cent 75-4
63-0
&>.o
54-0
Contingent liability as ~ndorser on
discounted paper rediscounte4 with
other F. R. :Banks
Co,ntingent liability on hills purchased
-tor foreign correspondents
2,336
19,875
ll,14o
10,4fP
864
832
41,465
1,472
J'. R. notes outstanding
F .. R. notes held by banks
F. :a. notes in actual circulation
~l!llla
discounted
· Bills bought. in open market
U. S. Certificates of indebtedness
Total
1,801,363
}1,136
226,426
@FedFRASER