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9 BOARD OF GOVERNORS OF" THE FEDERAL RESERVE SYSTEM R-678 WASHINGTON ADDRESS OF"F"ICIAL CORRESPONDENCE TO THE BOARD July 19, 1940 Dear Sir: .. There are enclosed for your information a table showing applications for members!lip received by the Board during 1940, ax1d a statement eontaining excerpts from the bank relations reports submitted by the Federal Rese.cve Banks for the month of J1me. A representative of one of the Federal ReServe Banks recentl~r raist~d the question informally whether these compilations are of sufficient interest and value to the Banks to justify their continuance. The Board has no inclination to continue the distribution of ~~xcerpts from bank relations reports unless they are of some value in appriaing your Bank of conditions and dovelop!nents in the other Federal Reserve Districts. It will be much appreciated, therefore, if you will give the Board the benefit of your frank opinion whether or not the present practice should be contL~ued. ---h~ L. P. Bethea, Assistant Secretary • .. Enclosures ....... TO THE PRSSIDEN'l'S OF ALL FEDERAL RESERVE BANKS 10 R-678-a Applications for Membership Received by the Board during 1940 June District Number Deposits This Year Number Deposits Boston New York 1..)'". 1~~ " Philadelphia 3 $ 3,000,000 Cl,weland 3 FU.ehmond ~t 8,400,000 13 20,600,000 1 10,600,000 7 16,300,000 Atlanta l 1,800,000 l 1,800,000 Chicago 8 7,600,000 22 18,800,000 St. Louis 3 1,ooo,ooo ll 7,200,000 4 2,800,000 Minneapolis •· Kansas City l 200,000 3 1,100,000 Dallas l 300,000 14 8,700,000 ...1 2,000,000 San Francisco ~ -l~ Newly organized bank. 80 = R-678-a July 18, 1940 Not for publication EXCERPTS FHOM BANK RELATIONS REPORTS FOR THE MONTH OF JUNE l9it0 BOSTON During Jcme the annual meetings of bankers 1 associations of Connecticut, Vermont and Maine were attended and visits were made to twenty country member banks and four nonmember banks located in scattered sections of Masaachusetts and New Hampshire. With two exceptions all member banks visited reported a better loan demand--the demand coming mostly from small borrowers. Most of the banks are aggressively Sl:;eking to increase their loan portfolios and the result in several instances has been the recapture of a considerable amount of local business that had been allo11'1ed to drift out of the communi ties to neighboring bank.s or into the larger cities of the district. One or two bankers, whose loan portfolios are increasing, expressed the view that the cond.uct o.f an active campaign to increase local loans is more profitable and perhaps more desirf.lble in the long run for a country bank to pursue than to engage in corporate bond buying. The banks 1 loan rates are from 6% dOVI.'l1ward, most loans carrying the former rate and few carrying a rate lower than 5%, excepting "town loans" made in anticipation of tax receipts. In one corrununity, conversation with a local banker led to the inquiry as to what Reserve Bank or governmental .financing facilities are available to small concerns which might secure Government contracts. In cases of this character it is urged that the matter be taken up promptly with Federal Reserve Bank officials. Retail trade throughout the sections visited was reported to be only fair with the exception of two corrununi.ties benefiting from large Army and NaVY pay rolls. In the<;e communUies retail trade was reported as being brisk with prospects of it continuing so for the next year or two :Ln view of the increased activities at the Goverrunent bases in connection vvith the national defense progr.s.m. In the opinion of the bankers, past experience of these comrr,unities with fluctuating Government pay rolls precludes any likelihood o.f a considerable expansion of existing business plants and housing facilities. NEW YORK During the month of J1me, our officers and representatives visited 136 banl<::s--96 member and 40 nonmeiD~ber institutions--located in various sections of the distrjct. The following is a resu:ne of the reports o.f visits to banks in sixteen counties in New York State. 11 P-678-a 12 -2- Albany, Fulton, Hamilton, Montgomery, Rensselaer, and Schenectady Counties, New York Even though the continued increase in savings deposits is represented largely in idle cash, a nwnber of commercial bankers report that earnings for the first half of the year have been about the same as during the first half of 1939, chiefly because of a further lowering of the interest rate paid on savings deposits and the curtailment of other f;xpenses. The loan accounts of a majority of the commercial banks have decreased in the past six months due largely to repayments of' State of New York obligations. Many bankers commented that their advertisements for rJersonal, automobile, and other installment loans have resulted in a substant:i.al increase in the~ volume of this class of paper. One of the largest banks in this area advertised during the last week in June that i t is prepared to assist industries participating in the national defense program in every way possible. The officers of a number of savings banks say they are not able to obtain enough new mortgages to offset the amount of amortization payments now being made. Broome, Ch\;mung, Cbanango, Cortland, Delaware, Tioga, and Tompkins Countie~.>, New York Some ban..k:s have disposed of their longer term Government obligations in recent months, and in most instances the proceeds remain uninvested in the expectation that the time is not far distant when lower prices will prevail in the Government bond market. There is a disposition on the part of many bankE.:rs to either stay out of the market entirely for the prr,::sent or to conf'im' their security investments to short term Government issues. A fei'v say they are adding an occasional high grade corpore:1.te issue to their portfolios. There appears to be some hesitation at this time to continue the lir:p1idation of railroad is::mes, especially where such compe>.nies show signs of improved business, the expectation beinr, that this condition will be reflected later in higher prices for railroad securities. The demand for credit is sai(i to be somewhat better and a nwnber of banks report higher loan totals. In the larger centers the increa:3ed demand is said to be chiefly due to the growth of personal and other types of installment loans, although a few b:mk0rs say they have had a better demand for business loans. In the rural area which was rk':l..rd hit by the drought last summer, farmers started borrowing in the early winter for the purchase of feed and hay to carry through until swnrnc:r. This borrowing ha.s been in addition to the usual spring seasonal requirements for crop purposes <-J..nd cattle replacements. During the spring months, there was also quite a demand for loans by the school districts 13 -3- R-6?13-a in anticipation of their clllotments of State funds. WhHe tho 6 per cent interest rate is still a fixed policy with some of these banks except on school and other public loans, the tendency of fixing rates according to the risk involved is spreading. Summarx of Preferred Capital Issues . In the sixteen <.:ountics covered by this report, there are 103 corrunercial banks, 66 of which have issued preferred stock or capital debentures aggregating ~b14,119 ,2go par value. Up to the present time 25 have paid off their entire issues an1ount:ing to $:,6_,350,000, 32 have made partial redemptions aggregating ~?2, 307,555 and 9 have not retired any-leaving 41 banks with a total still outs·~.anding of $5,461,725 par value, retirable at $8,071,945 reflecting a redemption premium of $2,610,220. PHILADELPHIA During June representative::; of th:Ls department IIk'lde visits to 55 member and 10 nonmember banks. The four counties covered in this report comiJrise 1,959 square miles w.ith a population of 515,900. The total banking resources of ~0225,f308,000 are distributed among 50 members, wh:lch hold :!~204,824,000, and 8 nonmembers, which hold $20,98h,OOO; an increase of :J$5,838,000 since the previous visits last year. Conditions show an improvement over those of a year ago. Industrial activity has been slackening since January in several communities, but at Berwick, the plant of the American Car and Foundry Company has been operating steadily and this has kept business conclitions st.able in that vicinity. l'he company is producing tanks for the United States Army. It was reported that the plant .is being prepar8d to ::'ncrease its output. '· The anthracite industry experienced good buslness last viinter and in most sections operations have been fairly well m<-Lintained. The stock of coal ca.rri.ed above ground at this season of the year has b(::en greatly depleted, principally because of a heavy clermmd from Canada. Operators are confident that markets once lost to Russia will be regained and thus provide another outlet for their product. Most of the mines are operating three d;ws a week, but operDtors in the Hazleton district report a five day week schedule. Conditions jn the agricultural sections are fairly satisfactory. Dry weather had an adverse effect upon crops last year, while prices generally did not sho'i'T much improvement over those of the previous year. Potato prices advanced somewhat but the crop vras short and 14 -4- R-67H-a of an inferior quality. Crops generally appear satisfactory this year to date, despite the delc:.y in planting because oi' the late season. T':1e dem"lnd for credit has L':':prcved since last year extensions being for small arr.ounts. Ea.rnJ.ngs continue to be problem for the bankers. /wtomooile financing is being done creas::.ng number of institutiom;, and FH:\ mortgag9s are being in effort,s to bolster earnings. with most the chief by an inpurchased Rec.dty values have shmvn little advance, but holdings of real estate by the banks :Ln this section show a reduction from last year. A visit was made to one nonmember bank concerning membership and as a result that bank is expected to apply for membership shortly. During the month of tTune 81+ banks were visited, of which 33 were member c..nd 51 were nonmember. Most of the bmks visited during the month are located in main office terri tor.r and in areas where a large nu.mber of nonmember banks may be fot:nd. Usually these areas are close to Reserve cities where the principal banks have been a.ctive in soliciting correspondent accounts. This is especially true of the territory lying southvvest of Toledo and the area inur:ediately surround::_ng the city of Columbus. Special efforts were made in the territories covered to interest banks in rnembel~si1ip in the System. In no caG<O' has there been an indication of unfriendliness to the System although the majority of the norilllember banks arJpeared indifferem:; to meJl1bership. They maintain that correspondent banks can furnish every service tl-:at a. Reserve Bank can furnish; tllE'Y insist that mainten.::.nce of the required :;:eserve with the Federal Reserve Brn.'!.( would necessitate closing of accounts with corresponc1ents vih:ich have been es-!-,ablis:led and maintained over long periods of time, and which thc_:y are reluctant to do. They exyJress a fear of additional supervision and regulation; in other cases a certain amount of' "house cleaning!! is needed before banks feel that they can qualify for rne::1ber·ship. Ger..erally speaking_, earnings of banks in this district for the first six months of the year will be satj sfactory, and in many cases will establish new high records. This appears to be the net result of the institution of service charges, reductions in the rate of interest paid on tim·:; and savings depo3i ts, the installation of personal or installment loan departments, and an increase in high-rate real estate 15 -5- R-678-a mortgage loans, or a combination of these factors. Banks in the smaller manufacturing centers visited during June l'eport either an increase in loan totals or no difficulty in maintaining loan accounts at present levels. RICHMOND During the month of Ju.ne 27 banks werg visited, of which 16 were member and ll nonmember banks. Carroll, Cecil, and Harford Counties, Mnryland The primary income of these counties is derived almost wholly from agriculture. Cecil and Harford Counties have become important locations in the sununer resort trade. The agriculture of the counties is predominantly livestock and dairying and the supplementary crops that go along with them. Grain and forage crop outlooks indicate a proauction somewhat larger than last year. Truck and canning crops (com in particular) are of considerable importance. Banks in these counties have become largely deposit institutions instead of lending institutions. Deposits of all banks interviewed were at or near their all-time high level. Time deposits in these banks constitute over 65 per cent of all deposits on which interest j_s paid at the rate of 2 per cent per annum. There is some agitation, however, for reducing this rate to l-l/2 per cent. Service charges in the major.it.y of banks consist of a f'l~c t charge of 2 cents for each check debited by the banks. Agriculture no longer contributes any :i.rnportant volume of loans to bank portfolios, and this is attributed to the development o.f the dairy industry. Monetary returns from dajrying are in good volume and are paid at frequent intervals. From these returns farmers are able to finance the crops of a more seasonal nature without recourse to bank credit. Canneries now under local control offer a good seasonal loan business, but frequently loan demands of t.he canners are greater than local banks can legally extend. At s~1ch times local banks convey the excess of loans to their correspondents. Halifax, Mecklenburg', and Pi ttsylV3...Ylia Counties. Virginia These counties, located in the southern part of Virginia, on the gorth Carolina border, are predominantly agricultural (about 70 16 -6.-.. R-678-a per cent of the employment comes fr~m this source), but llunber, textile, and tobacco manufacture afford important sources of income in some localities. To these counties some importance must be attached to dairying, poultry raising, sweet potato and fruit growing, and cotton, but the important source of farm income in this area is tobacco. Present indtcat.ions point to a large tobacco crop despite the 20 per cent curtQiL~ent in acreage. Opinion is ~~despread that tobacco farmers in these counties will vote aLl!lost unanimously in favor of the proposed three-year AAA control program. The reduction of tobacco acreage finds a good deal of land lying fallow, but many more grain and corn fields are to be found than usual. Every farm now seems to have a t~1ck garden, and a great deal more self-sufficiency is in evidence. ATLAl.JTA During the month of June 72 banks were visited, of which 32 were member banks and 40 were nonmember banks. Central Florida The main purpose of this trip was to discuss with officers of several eligible banks the question of membership in the Federal Reserve System and although no definite co1mnitments were made, the managements of these banks agreed to give the matter serious consideration. All of the banks visited reported increases in deposits and satisfactory earnings during the past season and look forward to increased activities and continued gro1~th of their corrununities. From reports, the cold weather last -;,rinter and early spring had some sericus effects on the vegetable and citrus crops and in some instances considerably damaged the citrus groves. The crops throughout this section have suffered from a drouth o.f several weeks 1 duration, but it is thought that rains early in June carne in time to prevent serious damage. None of the banks visited had any criticisms or suggestions to make regarding the Federal Reserve System. Eastern Central Georgia Bankers in all the communities visited reported good business in the spring and early surmner. During the past thirty days, however, business has registered the usual surruner slu1np characteristic of farming communities. Bank deposits are generally higher than a year ago and vrhile most bankers reported satisfactory earnings, the common complaint of lack of investment for idle i\mds was voiced. Bankers in activit;~r 17 -7- R-678-a 13 of 21 counties visited complained of keen competition from governmental lending agencies in the agricultural field. Most of this complaint was directed at production credit associations which are said to '.Je becoming more aggressivE each year. In a number of counties, bankers claL11ed that these orga.'1izations are getting as high as 50 per cent of all agricultural loans made. No criticisms of the services of the Federal Reserve Bank were offered by any of the member banks visited. i'Jhile the nonmember bankers were very cordial and apparently ap?reciative of a visit from our representative, none of them expressed any parttcular interest in membership. Exchange on :incoming checks at many of these banks was reported to range from "30 per cent to 50 per cent" of the total net income and none of them feel that they can afford to give up this source of revenue under present conditions. CHICAGO During the month of ,June 36 banks were visited, of which 10 were member banks and 26 were nonrnember banks. A few of the banks have expressed some intGrest in the proposed Mead Bill and have inquired as to the likelihood of Government contracts being n~de available as collateral for loans. The president of one of the State bankers associations in this District in his address to the convention recormnended membership in the Federal Reserve System for all banks that could qualify. 'l'he president of another State association is planning a campaign on service charges and will attempt to ~Lndu.ce the nonpar banks who do not have a service charge to install such a ch'lrge and to par their o-wn checks. He also stated that the dual banking system vrould more likely be preserved if all banks were to ,join the Federal Reserve System, and that he will give consideration to stressing this during his administration. In the last full week of June, Chicago district steel. mills continued to operate for the third consacuti ve vreek at practically capacity levels--92 per cent. Ntunerous orders for all kinds of steel were still being received by sales offices, and new business exceeds production despite the maintenance of the high level of operations. Although mill backlogs, as a result, are being built up, deliveries on most products are not yet very slow. B.:-;;.rs, sheets and strip, and semifinished steel, as j_n other rf3cent weeks, are contributing most to the volume of incoming business. Tin plate mills continue to operate at near capacity, as do machine tool plants. In the case of the latter, 18 -8- R-678-a backlogs in some instances are the largest since 1929. The railroads have made further purchases of rails and cars. It is the general feeling that considerable buying is for inventory purposes. Production of 1940 ;nodel automobiles was nearing an end as June came to a close, and output in the current week probably will cover only three days, as most plants will close over the July It holiday tl'..rough the end of the week. Aggregate production of automobiles for Jm1e, though falling below May as expected, nevertheless held up relatively well and was much above that for last June. Sales for the first two-thirds of the month compared favorably with the corresponding May volume. Retooling for 1941 models is now nearing completion at several companies. The new corn crop has progressed under favorable conditions, a.nd cash corn prices have held fairly firm in the face of a confused weakness in the wheat market. Prices of hogs have been unusually weak, holding around the five dollar level at Chicago, although within the last few days these prices have strengthened slightly. VITi th cash corn at around 65 cents at Chicago, feeding of corn to hogs still remains an unprofitable operation. Prices of fed cattle have held fairly firm and higher than last June. ST. LOUIS During the month of June 142 banks were visited, of which 53 were member banks and 89 were noruncmber banks. Illinois banks are paying up to 2 per cent on time deposits and their loan rates are from 5 per cent to 7 per cent with a light demand for credit. Earnings are off compared vrit.h last year. A member banker stated that he is hesitating about buying additional Governments, because of the European war situation. In the Missouri banks visited, interest rates of from 1-1/2 per cent to 2-1/2 per cent is credited on time money. The loan rate varies from 5 per cent to 8 per cent, with a fair demand for credit. In response to inquir;J by our representatives, the member banks uniformly reported that their relations ;vith the Federal Reserve Bank were entirely satisfactory. They had no suggestions as to how we could be of greater service to them. The cashier of a Kentucky nonmember has been connected with the bank for 37 years and has not forgotten what he claims to have been unfair methods used by the Reserve System years ago to enforce par collection of checks. He said this enforced method of collections caused 19 -9- R-6?8-a an exchange loss to his bank of about ;t$1,200 per yea:c and that no other form of iLcome had been found to replace this loss. He was ver;r much opposed to t,he application of the Wage and Hour Law and thought that generally, the Go'~rernment was interfering too rr.uch with private business. Membership was discussed, but he sai.d that he had never given it serious consideration. The cashier of anot!'1e:r Kentucky nonmember referred to vrhat he called stern tactics used by the Reserve System in tbe par campaign some years a.go and said that he was glad to note the more frie:ndly attitude of the System during tl1e past few years. He appc,ared somewhat interested in membership and inqu:i.red as to what services he could get from the Reserve Bank that he could Got get through his correspondent. MINNEAPOLIS During the month of June 256 banks viere visited, of which 103 were member banks and 153 were nonmember banks. Eastern South Dakota Banks wlthin this distd.ct generally received as high as 8 per cent on their loans. Most of the banks hold fe>Y or no farm real estate loans. Generally there is little F. H. A. financing. There was not much repairing or repainting. Not much fam. land was being sold, except that the Federal Land Bank and the South Dakota Rural Credit Board had made some sales at what were said to be low prices. Mostly, the banks carry more or less installment paper on cars, tractors, etc., make barnyard loans and to quite an extent make advances against assignments of conservation payments. !)ne banker said he thought banks should be more careful on tractor lJaper; he thought i t veF;f probable that some banks would suffer losses on such paper. Most of the banks did not appear to feel that Postal Savings or Production Credit Associations offered much competition. One banker indicated that the local demand for loans was such that he turned some of the larger loarJ.s to the Produetion Credit Associa.ticn. Western South Dakota Most of the bani~:ers are concerned about the high cattle prices and fear a violent drop. J', few weeks ago eastern ;;ool buyers commenced to contract for wool at 28 to 30 cents a pound, good ,>.>rices. Then came the blitzkrieg in Flanders and the buyers withdrew. Consequently, those 20 -10- R-678-a with wool to sell are disturbed about the situation. Sheep shearing is well under way and the wool crop is expected to be at least an average one. Proceeds of the sale of the wool clipped in the next thirty days will reduce loans somewhat. Several bankers said they are unable to acconunodate many ranchers and farmers in their territory because they are so involved with Federal advances for seed and feed that the status of the security is uncertain. They do not want to take the risk which may attach in such cases. There has been a fair demand lately for loans, mostly on sheep and cattle. A number oi' bankers spoke of the futility of the Government making rehabilitation loans. Although the idea of such loans is conunmdable, it was stated that almost without exception the recipients of Federal money were the shiftless, lazy individuals who had always been failures and who regard tht: funds as Santa Claus money. The bankers who mentioned this matter said that very heavy losses appear to be a certainty. West Central Hinnesota The subject uppermost in the rrd.nds of the bankers visited is the European war sitt:ation and its probable effect on conditions in this country. The territory visited is essentially agricultural and the bankers feel a deep concern as to the effect of the war on prices of agricultural products. They are also very much interested in its effect on bond prices and the probable trend of interest rates on new security offerings b;y the Treasury Department. A few bankers displayed some concern as to the gold holdings of the United States Govermnent and are hopeful that such holdings can be used advantageously. These bankers are strongly in favor of the immedi3.te adoption of a preparedness program by the United States Government which will insure adequate protection for the people of this country regardless of any eventuality. Real estate loans by the banks, usually on a very conservative basis, are made in most instances at interest rates of 5 per cent or 6 per cent. Chattel mortgage loans and installment paper for farm equipment and household appliances ordinarily bear a 7 per cent or an 8 per cent rate, the latter being the most common. In some conmmnities, the banks are experiencing keen competition from individuals who are lending money directly to other individuals. 'I'his is sometimes referred to as 11 sandbagging 11 and constitutes a real problem for some banks in the small communities. KANSAS CITY During the month of June 80 banks were visited, of which 37 were member banks and 43 were nonmember banks. 21 -11- R-678-a The visits to banks in .June were confined, for the most part, to southeastern Nebraska and northeastern and north central Oklahoma. Bankers complained in mo.ny colTllliUnities that people have the war jitters. A good many cases were found where bankers said they were making loans with much more care and caution due to the rapid change in the war situation following the invasion of the Low Countries. A good deal of concern is met with regarding general conditions in this country as a result of the European war. . The opinion was expressed that the . armament program will be financed vd th cheap money. Some bankers express great faith in long-term Government bonds, yet few care to buy them at present prices. Other bankers just "wonder" what Governments will do. One banker thought the Federal Reserve System was getting rich manipulating the Government bond market. The membership situation has changed l:Lttle. On the whole, bankers ask many questions about the System and membership. In Nebraska a number of good prospects said they ·would join the System :if' they did not have to go on the par list. Others say they will join when their earnings get to the place where they will not need exchange charges. Some overbanked communities were found and tht; eligible State banks, while friendly, said they would not think of momb ership until satisfactory consolidations could be worked out. In other cases, capital structures block rnembersh_:i.p. Several of the banks in eastern Nebraska that were visited were 1nsitutions where depositors had waived a part of their deposits some years ago when banks were in difficulty. A few banks are h;wing a real struggle with these obligations, but in most cases gratify:Lng progress is being made in paying· back these dr:posi ts. A variety of opinion is still found regarding the competition of governmental agencies. A Nebraska banker complained that these agencies were running many small banks out of business, while a banker in Oklahoma said this competition was becoming less severe as many of his former customers who hnd been borrowing from the Production Credit Association were coming back to him. Great differcmces are found in hank loans. In some instances nearly half the note case is made up of FHA loans, while other banks have none of this paper. Some banks make no personal loans on 2. timepayment basis, while others are increasingly expanding this business and finding it veF;J profitable. Ther0 are banks in rural communities that still lend the bulk of their funds to farmers in much the same 'Nay as they did two decades ago. A Nebraska banker was found who actively solicits clerks and salaried persons, urging them to buy homes. He loans 75 per cent of the purchase priee at 5 per cent. 22 -12- R-678-a DALLAS During the month of June 65 banks were visited, of which 58 were member banks and 7 were nonmember banks. West Texas Banking conditions in this region are satisfactory and steadily improving. Loa~s, deposits and earnings are, on the whole, showing a steady growth, largely because of the progress made in the development of a better balanced and more diversified agricultural system, aided by the surprising stability and high levels of cattle prices. One banker told our representatives that the farmers of west Texas are in better financial condition than they have enjoyed for many years. He attri.buted this happy situation very largely to the Government's crop control progrc>...m which, b:r reducing the production of cotton and wheat, has forced farmers into new avenues of productive effort, principally livestock raising. Banks throughout the territory reported a sharp expansion of loans and a consequent increase in earnings over last year. The growth of the loan volume was caused in a large meastrre by an increasing demand for credit to finance purchases of calves and stock cattle, the farmers being anxious to utilize lands withdrawn from cultivation and also to take advantage of the abundant rains that have recently fallen in west Texas and made possible exceptionally fine pasturage and feed crops. Another factor which has aided the growth of bank loans and earnings in this region is the determined efforts that many banks are making to recapture a portion of the business which the-y had lost to Government lending agencies, particularly the Production Credit Associations. The banks are at last beginning to meet this competition successfully by lowering interest rates, a step whi.ch most of' them vvere at first slow and reluctant to take. Against the background of generally favorabls reports in regard to agricultural and banking conditions in west Texas, there is an increasing sentiment of uneasinP.ss and pessimism a.m.ong the interviewed bankers in regard to the continued high market prices of cattle. Beef prices, in their opinion, are undu~ high in relation to the price of hogs, and are due for a d(;jcline. Although the persistently high level of cattle values is not fully understood by the banks that are financing the cattle raisers, it is felt that it may be accounted for, in no small measure, by heavy and widespread buying of cattle by farmers for the purpose of shifting a. large part of their production program from cotton or wheat to liYestock. 23 -13- R-678-a SAN FP.ANCISCO During the month of June 17 banks were visited, of which 15 were member banks and 2 were nonmember banks. PUBLIC RELATIONS ACTIVITIES OF FEDEfi.AL RESF..RVE BANKS June 1940 Federal Reserve Bank Visits to Banks Member I Nocinember I Total Addresses Made Attended Number !Attendance Number !Attendance Meetin~s 11 2 390 2,320 0 0 1 128 0 0 84 10 2,91+7 2 210 11 27 7 3,736 3 516 32 40 72 0 0 0 0 Chicago 10 26 36 3 1,192 2 115 St. Louis 53 89 142 5 2,020 11 Minneapolis 103 153 256 9 6,450 3 370 Kansas City 37 43 80 6 923 2 135 Dallas 58 7 65 4 2,445 1 ...... 1,600 San Francisco 15 2 17 14 2,364 1 90 Boston 20 4 24 4 New York 96 '-~-o 136 14 Philadelphia 55 10 65 Cleveland 33 51 Richmond 16 Atlanta 1/ Not reported 11
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