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-4 0 FEDERAL RESERVE BANK OF HEW YORK. October 27th, 1915. My d ear Governor Hamlin : Your favor of the 25th Inst* is received and 1 am glad to enclose with this a comparison of the loan, reserve and deposit figures of the Clearing House banks and trust companies of this city, exhibiting the changes that have taken place between November 13, 1914 and October 4 3 rd last. As a matter of some interest in this connection, I enclose a further statement made acme time ago, showing the ratios of gold and bullion reserve held by all the banks and by the United States Government against all deposit and note liabilities, incluaing those of the United States Government. These figures are rather'rough and could be refined to a greater degree of accuracy, but probably would not materially alter the results. Referring to the first statement, you will observe that in New York City the expansion of bank deposits has amounted to about 6 Of. in a little over about 40$} in that period 11 months and the increase of loans the reserves increasing likewise, 60$. The normal rate of increase of banking resources in New York City ■n u- -2 - -403- is from &% to 10% per annum, so that the expansion in these two accounts has in 11 months equalled what, under normal conditions, w«uld occur in 5 or 6 years* Various suggestions have been made for checking this expansion, of which only the following seem worthy of considera tion : 1st. To arrange with the Clearing Houses in various cities to voluntarily increase their reserve requirements beyond those now required by the statute. 2nd. For the Comptroller by ruling to do away with the present practice of the ccuntiy, banks to count checks in the mail on their way to Reserve Agents, as part of their legal reserves. 3rd. To ask Congress to amend the Federal Reserve Act so as to put the reserve■provisions fully into operation at once instead of gradually over a period of two years. 4th. For the Treasury to withdraw from its National bank depositaries, all surplus balances unnecessary for the conduct of its business and deposit same in the Federal Reserve Banks. So far as 1 have observed, many of the Clearing House banks of this city view this matter with some concern, and are exhibiting caution so far as possible in extending credit. ■r-r> -3 - “403 - Were this net so, the present surplus reserves of nearly $200,000,000 would not exist. The time has certainly arrived when a brake should be ap plied, and if there is any method by which we can cooperate in deal ing with the local situation here, you may count on our doing the extent of our ability*. Very truly yours, (Signed ) BENJ. STRONG., Jr., Governor* Hon. C. S. Hamlin, Governor, Federal Reserve Board, Washington, D» C* Jr/vClf-5 10/30/15 so to MEW YORK CLEARING HOUSE BAMKS. AVERAG-ES FOR WEEK ENDINGNOVEMBER 14. '1914-. and OCTOBER 23. 1915. (In millions) Novembe r 14, 1914. Loans> Dis. oc Inv. Gold Silver Legals With Deposi tories Nat. oc Sta/te Banks Trust Companies $1509.4 623.8 379. 63.8 57.8 $2133.2 442.8 1858.9 282. 865.3 $3006.2 Deposits Net Net Demand Time $ Res Held 1465.8 459.5 12.5 6.7 25.9 26.5 57.8 1925.3 19.2 26. 360.6 68.2 90.4 153.8 9.2 37. 2027.4 3ll. 740.8 19.4 153.5 .2' 18.8 18.3 119.6 25.4 22.9 14.8 513.2 205. 3079.2 139.2 190.6 22«3 UR <-0 Excess Reserve October 23, 1915* F.R.Bank Members) State Banks ) Trust Companies INCREASES. F.R.Bank Members) State Banks ) Trust Companies 43.8 241.5 26.6 70.4 CO ■D00 -69- $631.5 41$ 17$ 892.2 159.8 20.8 400.9 11.6 147.2 1293.1 171.4 168. *255$ 67$ ♦Caused by Federal Reserve Act. *893$ 692 -3hj / York,, SoptaUibcr J l, Z * 1 j , Ar estimate of tne ratic® oS ^cid and bullion rtoervtj to all deposit and note liabilities of the ba^ks and Government of the United States On June 23, 1915DEPOSITS 1 12 Federal Reserve Banks .. 2. 7605 Nationxl Banks . . . . 3. 19444Other Banks........ - •• v . - • * 311,349,000 00 8,059,630,796-00 -•• .11,991,350,990 00 BILLS PAYABLE AND BANK NOTES 4. 5 6. . . . Other Banks............... U. S. NOTE ISSUE .. .. 8 TREASURY NOTES 1890 82,691,000-00 820,823,521.00 National Banks....... , r. 9. . .. Federal Reserve Notes... . . . . ....... .... .... U. S. SILVER CERTIFICATES OUTSTANDING-............. Total Liab liltles 152,052,310.00 3 4 6 ,6 8 1 ,0 1 6 . 0 0 2.245^710.00 $21,766,824,343.00 493.459.COO. 00 #22,260,283,343 -00 GOLD. 10. 11. 12. 13. 19. 14 #255,187 ,CC0.C0 68,996,000. CO Feaeral Reserve Agents........ .. * *.* 491,438,440.00 National Banks; . . . .. i. . ... 369,387,388.00 Other Banks . . ...................... 152,977,037 00 U. S. Reserve Fund.................. 206,526,508.00 U. S. Treast ( as assets )....... . ... 19.390.345.00 Five per oe^ij Redemption . . .. $1,563,902,718.00 693 -6i Brouent F "-'d U.56o,90x SILVER OGIM 4T BULLION V/LUE lb 16 17 18. 20 Federal Reserve Banks National Banks .. ........ Other Barks. . . . U. S. Trust Fund - Silver Dollars U S. Treasury ( as assets) ?4 00 16,809,815 00 15,327,925-00 246,729,500,00 17.153.700.00 $,’1,859,923,682-00 1. Deposits m $1,563,902,718 Gold to $21,766-324,343 = 7.16% $1,859,923,682 Bullion to^22,260,283 343 = 8.36% Federal Reserve Banks July 25, 1915, taken from Report of Federal Reserve Board Net deposits 2. Net deposits m . . No. 283 *311,349,000.00 National Banka, June 23, 1915, taken from "Abstract of Reports of Condition of National Banks No 95- Comptroller of the Currency." Since November 16, 1914, "net deposits subject to reserve e requirements" have been reported as "net amount on which reserve is computed." deposits." The latter amount includes only a part The balances, 15/18 of "time of Central Reserve Cities, 10/l5 of Reserve Cities and 7/l2 of Country Banks, have therefore to be added. Page 4, Colunjp 10. esi - .a03' 3 Gen oral Reserve "Net A m o u n t " ...... $2,094, 792,06 J.e06 15/l8 of 38,050,491*0Cvtime d e p o s i t s .... .• 31,708,749.21 53 Reserve Cities "Net Amount" ....... 10/l5 of 203,815,873*^4 time d e p o s i t s --- ... 2,060,319,541.08 135,877,2^9*23 7549 Country Banks "Net Amount" ..... 3,123,188,652 ..70 7/l2 of 1,043,562,035.17 time d e p o s i t s .... 608.744.520^2 Total National Bank net deposits...$8,059,630,795*80 3. Net deposits in other banks* Extract from letter dated September 11, 1015, signed by 1 W. J. bowler, Deputy Comptroller of the Currency s in compiling returns from other classes tional) - " ___ of banks ( not na will not be completed fcr some time." "______ probably December." Therefore the figures of June 30, 1914, are taken as a base to which is added the same proportion of increase for the year as is shown by national banks, which is 7 Nataonal Banic net " " " 531 1000% viz: * deposits June 30, 1914.............$ 7,495,149-220.17 " June 23, 1915,............ 7^531? Increase 8,059.630.7.')5.80 $ 564,481,575-63 Prom Report of the C o m p t r o l l e r t h e Currency, 1914, Vol 11, page 747, summary of reporting banks, other than national, June 30, 1914. 1 j 695 ‘-£■240 bii-Kd 4 l-06/o = 19444 banks Due to National Banks....................... $ 73,922,330.46- Due tc State, etc. ,3anks.................... 445,250,405-99 Dividends unpaid......... '.................. 11,473,678*84 Individual deposits........ ...... ........ 12,249,040,449.29 Postal Savings Deposits.... ;.............. 16.404,525*65 Gro3 S Deposits....... $12,796,Q91.r390*23 Less ■ Due from National Bank.....$1,022,899,654*36 Due from State Banks, etc.. 458,622,615*49 Checks and Cash Items..... 163.114.107*30 j 1.644.636.377*15 Net Deposits...... -....... $11,151,455,013*08 7.531$ : ................ 839.895.977.00 $11,991,350,990.00 4*. Bills Payable and National Bank Notes Federal Reserve Notes issued to Banks, June 25, .............................. $ -82,961,000.00 from Federal Reserve Board Statement for Press 5* Notes, etc* Kb*283 bi National Banks, Jun6 23,1215 Circulation!*.*.ii.i;;;..... . Notes & bills diseeuhti^ $30,918,987131 Bills Payable *.*.»*..* , 58.20Q>677i00 ~ 7^2,703,856*50 ____ 98.119.664*31 820,823,520.81 f 696 4■»6. Bill'-; Payable urd Notes and Bills rediscpunted (other than national banks ) increased by the same percentage ad national banks* . National Bank increase : ‘ June 30,1014.....§91,211,928.47 June 23,1315.... 98.119.664.31 7.572%,.increase 6,507,735.84 Report of the Comptroller of the Currency 1914i Vol.ll, page 747, jfune 30,. 1914. Notes and Bills rediscounted , Bills Payable, etc.,............... Aid 7,,572% ( growth of nationals ) 7.. ..$24,693,003.26 U. S. Notes ( from Circulation Statement 'Treasury Depti Form 1028 ) $141,349,338.31 $ 10.702.971.90 $152,052,310.21 $346,681,016.00 8. Treasury Notes 1890 (from Circulation State ment Treasury Department-Forml028 ,) 2,245,710*00 9. U. S, Silver Certificates July 1,1915, from Circulation Statement: Treasury Department Form 1028 493,459,000.00 Federal Reserve.Banks Gold 'from statement .for press No*283b June 27* 1915 $255^18^;000.00 10. Federal Reserve Agents 68,996,000.00 J ■■1j* 111 697 . Coles. in National Banks June 23, 1915 -4C3" - Report No. 9'5 Coin......... £>121,172,645 *52. Certificates.. 276,045,225.00Certificates to oraei.. 63,115,000.00 *C. H, Ctfs.* 31.104.570.00 '■ §491,438,440* 00 * 42?.-. of §74,058,500 C.H. Ctfs. estimated to represent gold ( N. Y, Q. H.. proportion (6l to l4i) given me by Ur* Gilpin Septemoer 17, 1.915 ). 12v Comptroller of the Currency No. 89 Cold C o i n ................. ... ,.£149,295,329.20 Certificates.'................... 321,728,740.00 Certificates .to order......... 5-1,875,000.00 42? C.H, Ctfs................. . .41.9(34.880.00 Natl* Bank Gold 1914....... 567*883,949.00 Natl.Banks & Fed.Kes. Banks 1915. -................ 746.625.440.00 31,5? Increase $178,741,491.00 TAhile the gold in Feaeral Reserve Banks and National Banks on June 23, 1915, is greater than, that held by National Banks 30,1914, by nearly 31.5?9 it i3 not considered that the increase has been so large in other banks. used as the rate of growth. June 7? is 40— -1 1 - ^old in othe** banks June 30,1914, from Report of Comptroller of the Currency Gold Coin 48,307,136.96 State Banks % 1914* Vol. 11, pp. 729 to 732: Total Cash. Gold Ctfs. Not Classed 54,355,540. 47,745,900.68 261,919,122.8f 4,754,953.83 4,874,890. 6,716,575.41 23*987,453.11 Stock Savings 16,446*707.16 4,976,700. 9,228,333.71 43,812,040.12 Private Banks 961,856.17 1,133,750. 2,534,£29.85 7,294,550-18 18,611.429.45 132,701,200 37.520.793.49 89,082,083.57 198,042,080 103,745,833.14 279.642.380.49 616,655,547.01 Mutual Savings Loan & Trust Cos. Total. . . Not Classed Classified. Gold Coin " Ctfs . Gold. . . 616,655,547.01 .103.745.883.14 ..512,909,663.87 89,082,083257 198.042.080.00 287,124,}.63-57 r 56$ of Classified Add 56$ of not classified Add 7$ 13. 58.097,694.56 345,221,858.13 estimated gold 2914 increase 24.165,530.07 3f'\3«*,33? 20 estimated gold 1915 U. S. Gold Reserve Fund July 1, 1915, from Statement of Public Debt June 30,1915: Gold C o m Gold Bullion .$ 102,977,036.63 50.000.000.00 § 152,977,036.63 -40V -12- Redemption Fund- National Bank Not63 ( Gold CLoin,Silver Dollars or U.S. Notes) From statement of Public Debx,June 30,1915 Silver s> 19,390*345*50 coin at bullion value (50£ on the dollar) Federal Reserve Banks : From Board's Press Statement No*283,June 26,]915 Legal Silver, etc., total I $47,848,000As proportions are not given, and as the N.Y.Bankir holds $37,618,996 of the total of which 2d-25 is coin, the ratio of N.Y.'s silver c o m to the toxal, *000001, is taken to estimate proportion of silver m ',>7,848,000, or $47.85 @ 50$g : 23*33 Silver in National Banks, June 23, 1315, Comptroller of Currency Report No 95 Dollars. Frac tloral $12,427,405-00 21.102.6654 00 33,619,630.00 4 700 i -1 3 - -403- Silver Coin_______ Silver C t f s . _____ Total Silver^ 13,554,879.21 . State Barks Mutual Savingc 30,658,452.Ob 133,349.90 1,405,874.00 Stock Savings 1^990,878.69 3,247,080.00 Private Banks 508,561.94 475,473.00 6*462.658.24 28, j550,327.98 26.275.556.00 62,0$2,435.00* Loan & Trust Cos. 1%....... ® 500 = 15,327,925. U. S. Currency Trust Fund Silver Dollars..... ................. $493,459,000.00 @ 5 0 0 ................... •.............. 19. 246,729,500.00 Gold coin and silver at bullion value in Treasury of U. S. as assets Gold 20. _ ____________ 90,712,762.98 2.005,522.96 30,655,850.94 18. ■ c6in......................... ...206.526.508.00 Silver dollars $7,9l0]351 @ 500 Subsidiary Silver $26,397,048 @ 50$, 3,955,175.50 13,198.524.00 $17,153,699.50 Xl/l/15
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