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FEDERAL RESERVE BOARD WASHINGTON ADDRESSOMCALc0RRESP0NDENdgV$J2CT: ^ Designation and Termination T H E FEDERAL RESERVE BOARD GF R E SSL'VE CLTLES Dear S i r : As you were a d v i s e d a t Board has under c o n s i d e r a t i o n a to terminate the d e s i g n a t i o n of n e c t i o n therewith the Board had are e n c l o s e d , showing the r e c e n t Governors' conference, the r e q u e s t from member banks in Albany, 1J. Y., t h a t c i t y as a r e s e r v e c i t y , and in contwo statements prepared, c o p i e s of which 1. Deposits and r e q u i r e d r e s e r v e s on December 31» 1928 of member banks i n r e s e r v e c i t i e s in which no Federal r e s e r v e bank o r branch i s l o c a t e d , and the excess of such r e s e r v e s over those t h a t would be r e q u i r e d of country banks. 2. Deposits and r e q u i r e d r e s e r v e s on December 31, 1928 of member banks in 33 non-reserve c i t i e s , and a d d i t i o n a l r e s e r v e s t h a t would be r e q u i r e d i f they were designated a s r e s e r v e c i t i e s . You were a l s o advised a t the conference t h a t a member of the Board has introduced a r e s o l u t i o n which, i f adopted, would r e q u i r e t h a t a l l c i t i e s i n which the r a t i o of amounts due to banks to t o t a l d e p o s i t s of member banks i s 10 p e r cent or more, be c l a s s i f i e d a s reserve c i t i e s . The Board h a s t h i s r e s o l u t i o n under c o n s i d e r a t i o n and i s endeavoring to work out some formula whereby e i t h e r the r a t i o of bank d e p o s i t s to t o t a l dep o s i t s or the aggregate amount of bank d e p o s i t s , or a combination of the two, might be used a s the b a s i s of determining whether or not a given c i t y should be designated a s a r e s e r v e c i t y . The Board would l i k e to have you give c o n s i d e r a t i o n to t h i s question i n the l i g h t of c o n d i t i o n s e x i s t i n g in your d i s t r i c t , and advise i t whether or not in your opinion some formula along the l i n e mentioned can be worked out f o r use a s guide i n d e s i g n a t i n g r e s e r v e c i t i e s , a l s o how any formula t h a t you may develop would work out f o r each c i t y i n your d i s t r i c t t h a t would be a f f e c t e d . I t i s a l s o requested t h a t you a d v i s e the Board whether i n youropinion some m o d i f i c a t i o n of the formula might be used in designating c e n t r a l reserve c i t i e s . By order of the Federal Reserve Board. Very t r u l y yours, E. M. McClelland, Assistant Secretary. Enclosure LETTER TO ALL GOVERNORS* ; 470 DEPOSITS .MID REQUIRED RESERVES 017 DECEMBER 31, 1928 OF MEMBER BMKS IN RESERVE CITIES III ;7HICH :T0 FEDER.U, RESORTS BA2TK OR BRANCH IS LOCATED, A17D THE EXCESS OF SUCH RESERVES OVER RESERVES THAT '.70U1D BE REQUIRED OF C0U2TTRY BMKS (Amounts i n thousands of d o l l a r s ) Required reserves Due to "banks ** Excess over PopulaRatio to Het Time Total tion in Amount t o t a l demand deposits deposits At countryp r e s e n t bank-basis d e p o s i t s deposits 1927* Albany 120,000 13,342 13.1 63., 861 Washington Hi lvrauke e Indianapolis Toledo ~ 5^0.000 13,897 io;o 536,000 33,099 15.8 374,000 23,602 20.9 305,000 3,295 8 . 4 76,27s 111,325 64,393 38.309 Columbus Oakland St. Paul Fort Worth 14,127 13.2 5,650 16.7 26,162 20.7 164,000 24,370 27.6 63,502 Grand Rapids Tulsa Pes Moines Kansas City Kans. 162,000 150,000 14-9,000 118,000 33,749 3,774 7 4 24 . 1 20.4 28.0 Savannah ITichi t a Peoria Sioux City 100,000 16,155 96,000 10,190 84,000 4,512 8,060 79,000 20..5 26..2 13.S 28.5 291,000 267,000 250,000 6,301 26,871 10,830 101,997 7,122 138,365 209,94s 113,145 98,733 8,948 13,151 7,188 5,328 3,340 1,931 1,149 22,523 64,616 28,179 107,387 6,961 33,892 39,627 126,133 7,195 2,461 7,651 5,699 1,905 675 1,939 1,569 m 43,944 85,210 17,790 111,384 10,579 53,077 3,290 13,467 4,693 8,086 3,763 Sol 1,013 2,266 1,034 229 33,731 30,066 16,354 12,588 8,207 78,992 38,941 32,643 28,262 4,275 2,688 2,013 1,580 1,012 744 490 4oo 52.310 7,616 24,790 13,342 24,544 44,006 67,261 24,968 49,89s 15,608 6,975 85,272 1,916 2,289 fit. Joseph Lincoln Topeka Cedar Rapids 791000 70,000 62,000 54,000 9,621 7,276 32.8 31.0 3,644 16.5 10,461 34.1 15,817 13,761 15,912 13,501 7,847 3,485 2,642 11,354 29,345 23,460 22,084 30,646 1,817 1,481 1,670 1,691 475 413 477 405 Galveston 'i7aco Pueblo Dubuque 46,000 44,000 42,000 50,000 8,569 27.4 2,541 11.6 5,850 28.1 848 7-0 13,84s 11,695 2:82? 13,994 7,417 5,587 6,911 31,319 21,813 20 , 832 12,116 1,805 1,393 1,0?8 652 4i6 351 273 134 Ogden Muskogee 38,000 33,000 4,793 40.5 1,949 14.8 7,279 6,209 1,541 4,754 11,831 13,184 774 764 218 18% 908,250 500,023 1,676,47s 105,827 27,249 TOTAL, 27 cities 4,303,000 304,789 18.2 •Census Bureau e s t i m a t e s , except t h a t population marked (*) i s taken from J u l y 1928 Rand-MtiJally Bankers Directory. **Does not include amounts due to Federal reserve banks, c e r t i f i e d and o f f i c e r s ' checks, and cash l e t t e r s of c r e d i t and t r a v e l e r s ' checks. FEDERAL RESERVE BOARD DIVISI02I OF BAITK OPERATIONS MARCH 29, 1929. C. ( S t . 6l4Sa) DEPOSITS AH) REQUIRED RESERVES 0:1 DECEMBER 31, 1923, 0F MEMBER EAMS IH 33 NON-RESERVE CITIES, AND ADDITIONAL RESERVES THAT WOULD BE REQUIRED IF THEY WERE DESIGNATED AS RESERVE CITIES (1) C i t i e s with $5,000,000 or more of "bank d e p o s i t s 471 (2) Other c i t i e s with population of 125,000 o r more (Amounts in ro** Due to "banks PopulaRatio to tion in total Amount 1927* deposits thousands of d o l l a r s ) Requirod reserves ' Net Additional Total Time At demand on re servedeposits deposits present deposits c i t y "basis (1) CITIES WITH $5.000.000 OR MORE OF BANK DEPOSITS 201,770 101,515 322,790 17,169 467,000 9.353 £1 107,924 42,787 156 , 578 8 . 8 B 197,000 5,675 2,346 21,15s 52,036 24,452 115,000 7,261 13.9 1,870 20,227 45,080 18,043 108,000 7,130 15.8 Newark Syracuse Duluth Tampa Shroveport 78,000 Winston S&lom 77,000 Sacramento 75,000 102,000 Knoxville 9,473 7,468 8,349 21.9 15.6 22.0 9,513 17,712 14.5 25,646 22,227 20,819 14,926 Charleston Chattanooga E.St.Louis & Nat.Stk.Yds. Joliet 75,000 5.179 11 73,000 6,718 •7 15.4 13,840 18,725 23,494 17,940 73,000 7,918 5,083 29.4 17.0 16,213 15,223 11,172 42,000 5,116 10,743 14,212 7,647 196,000 185,000 181,000 455 179,000 4,344 l.l S.9 Youngs town Hartford Springfield Scranton 169,000 168,000 147,000 144,000 1,107 2,448 1,800 4,396 1.6 3.1 3.5 4.9 Bridgeport Paterson Flint Miami *144,000 144,000 143,000 l40,000 1,020 1,345 322 1,243 3.0 Trenton Camden F a l l River Long Beach 610 137,000! 133,000!! 1,24s 133,000' 1,050 *129,000; 582 Wilmington TOTAL, 21 cities 3,983 859 1:6 2.0 57,011 28,113 25,409 24,651 24,511 70,442 23,666 36,135 16,459 624 448 44,361 43,519 1,674 1,849 415 552 26,974 29,843 1,364 1,401 487 456 47,933 37,919 35,248 14,993 546 2,566 3,723 885 18,696 1,710 843 762 740 42,555 3,869 24,654 47,920 69,120 78,159 51,317 89,948 2,992 5,047 736 2,113 710 1,085 14,455 39,726 34,165 66,804 57,780 24,211 1,586 2,909 2,334 1,194 494 736 472 384 41,370 47,356 18,812 2,168 2,352 1,179 728 72S 13,443 24,247 15,695 5.6 2.3 15,872 14,826 2,273 126,000: 1,084 • i 2.3 40,716 3,734,000| 38,292 2.6 736,684 24,265 667 4,483 2,697 2,182 2,286 41,117 % 769 78,424 5>t. 521 41,506 48,870 l6,4oi 24 ,302 24,533 15,722 12,781 .6 5.1 3,237 734 541 2,081 2,087 1,780 1,471 43,180 TOTAL, 12 499,808 298,120 885,511 43,931 9.6 cities 1,,482,000 84,723 (2) NON-RESERVE CITIES NOT INCLUDED ABOVE. WITH POPULATION OF 125.000 OR MORE 58,887 2,463 39,647 1.3 . 18,194 Rochester 771 325,000 72,162 166,346 8,153 2.1 Jersey City 322,000 3,520 85,539 124,094 175,339 306,181 13,947 281,000 4,588 Providence 1.5 3,436 29,498 *208,000 1,517 45,699 79,193 1.9 Akron Worcester New Haven Dayton Norfolk 6,053 9,982 21,768 9,895 25,689 5,054 47,905 684,652 1,486,564 2,396 3,967 1,335 476 444 3,002 1,221 72,108" 22,102 •Census Bureau e s t i m a t e s , except t h a t population marked (*) i s taken from J u l y 192S Bankers D i r e c t o r y , **Does not include amounts due to F. R. "banks, c e r t i f i e d and o f f i c e r s ' checks, and cash l e t t e r s of c r e d i t and t r a v e l e r s ' checks. FEDERAL RESERVE BOARD DIVISION OF BANK OPERATIONS MARCH 29, 1929. (St. 6l4gh)
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