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federal reserve board WASHINGTON August 24, 1926. S t . 5064. ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD SUBJECT: Debits t o Individual Accounts. Dear S i r : The B o a r d s weekly statement of d e b i t s to individual accounts by banks in s e l e c t e d c i t i e s i s now extensively used as a measurement of the volume of business t r a n s a c t e d c u r r e n t l y in each r e p o r t i n g c e n t e r and i n a l l r e p o r t i n g cent e r s , and as an index of the volume of these t r a n s a c t i o n s over an extended p e r i o d . I t i s t h e r e f o r e d e s i r a b l e to make the published f i z u r e s as r e p r e s e n t a t i v e as p o s s i b l e and t o be extremely c a r e f u l to see t h a t they a r e kept cn a comparable b a s i s . Under the p r e s e n t system of r e p o r t i n g i t i s d i f f i c u l t t o maintain the r e p r e s e n t a t i v e c h a r a c t e r and comparability of f i g u r e s ever a considerable period of time because of the changes t h a t f r e q u e n t l y occur i n t h e r e l a t i v e volume of d e p o s i t l i a b i l i t i e s of r e p o r t i n g and of n o n - r e p o r t i n g banks. At p r e s e n t the r e p o r t s f o r mazny of the c i t i e s r e p r e s e n t d e b i t s of only those banks which a r e members of t h e l o c a l c l e a r i n g house a s s o c i a t i o n or which c l e a r through members of t h e a s s o c i a t i o n , and changes i n such membership n e c e s s a r i l y a f f e c t the number of r e p o r t i n g banks and consequently tne comparability of tne f i g u r e s . Requests have a l s o bodn received from time to time f o r permission t o include f i g u r e s f o r a d d i t i o n a l banks both f o r c i t i e s i n which c l e a r i n g house a s s o c i a t i o n s e x i s t and c i t i e s vvnere d e b i t f i g u r e s are compiled by other agencies. The Board f e e l s t h a t tne statement would be much improved i f a l l banks i n each r e p o r t i n g c e n t e r t h a t r e c e i v e checking d e p o s i t s could be induced t o f u r n i s h debit f i g u r e s r e g u l a r l y each week, and i t would-like t o have an expression of your views as t o the p r a c t i c a b i l i t y of obtaining r e g u l a r r e p o r t s from a l l banks in each of t h e r e p o r t i n g c i t i e s in your d i s t r i c t . To accomplish t h i s i t migiit be necessary to g e t r e p o r t s d i r e c t from some of t h e bank* not now r e p o r t i n g , but arrangements could perhaps be made i n most cases f o r tnese banks t o r e p o r t through the e x i s t i n g r e p o r t i n g agencies. With the view of determining how s e r i o u s l y the f i g u r e s are a f f e c t e d by the f a c t that r e p o r t s cov^r only a p o r t i o n of the banks i n some c e n t e r s , i t w i l l be appreciated if you w i l l kindly prepare and send t o the Board a s t a t e ment showing f o r each r e p o r t i n g c e n t e r : (a) the names of c l e a r i n g nouse banks; (b) the names of a l l s o - c a l l e d c l e a r i n g nonmember banks, the name of each c l e a r ins? nonmember bank to follow, s l i g h t l y indented, tne name of the c l e a r i n g house bank through which i t s checks are handled; and (c) the names of a l l - 2 444 - S t . 5064a other banks which c a r r y d e p o s i t s subject to check. The words "no r e p o r t " should be shown a f t e r the name of each bank for which no r e p o r t s a r e now received. The l i s t of banks should be accompanied with a t a b l e showing s e p a r a t e l y f o r each r e p o r t i n g center the t o t a l demand d e p o s i t s of r e p o r t i n g banks and of n o n - r e p o r t i n g banks. The p r e s e n t i n q u i r y i s intended to f u r n i s h the Board w i t h information regarding the completeness of the debit f i g u r e s f o r the v a r i o u s c e n t e r s and to obtain the views of t h e Federal reserve agents w i t h r e s p e c t t o the suggested changes i n the statement and i t i s requested that f o r t h e p r e s e n t no arrangements, even in a t e n t a t i v e way, be entered i n t o f o r o b t a i n i n g f i g u r e s from banks not now r e p o r t i n g . Very t r u l y yours, B. R. C r i s s i n g e r , Governor. LETTER TO ALL FEDERAL RESERVE AGENTS*