View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

120. - Reserve Organization Committee
pocket

I

iY-CT-#1141.1.40.1e,

Filing Pockets

A special "Y and E"fiber material of
toughness and dur bility. Mada solelyextrema
by

yki—
orm4N•.NolitstMK.44
ROCIIFSTER, N. Y.

No.4524 E Size 11, x9;x33- Expansi
on


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

l r REC'D IN FILES SECTION'.
i

FEB 3 - 1941
INDEX

#1

TO

FORMS.

Instructions relative to passing resolution of acceptance or
non-acceptance.

#2. Invitations to Boston meeting.
#3. Invitation to Washington meeting.
#4. Advising that matter of public stock will be given future consideration.
#5. Annowledging recommendation for location of 72eserve bank.
#6. Declining invitation to visit city not included in the itinerary
.
P. Advising that forms for application for mar.bership in Federal
Reserve Bank will be forwarded.
f8. In answer to question whether stockholders meeting is necessary
to vote on membership in Federal Reserve Bank.
09. (No form)
010. Acknowledging receipt of applications for employment
(clerical).
#11. Advising state banks and trust companies that forms for
application
for membership will be forwarded as soon as prepared.
#12. Advisinr of hour of New York hearings.
#13. Advising that contract has been made with reporters to take
notes
of hearings.
#14. Changing date of New York hearings.
#15. Advising applicants where copy of Act may be obtained,
and sending
one copy.
#16. Relative to a-plications to act as Trustee;
etc.
#17. Enclosing resolution cards to banks not having
received them.
#18. Relative to employment with Federal Reserve Banks.


e•',`
http://fraser.stlouisfed.org
*kb
Federal Reserve Bank of St. Louis

1

ADDRESS REPLY TO
VE BANK ORGANIZATION COMMITTEE
REASURY DEPARTMENT
WASHINGTON, D. C.

Form

"L.-1"

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

\

December 26, 1913.

Sir:
Pursuant to Section 2 of the United States Federal Reserve Act,
which becTle a law on December 23, 1913, the Reserve Bank Organization
Committee has adopted the following as regulation No. 1:
"That every national bank shall submit to its board of directors alternative resolutions accepting or rejecting the provisions of the Federal Reserve Act, and shall file with this committee, within the sixty
days prescribed by said Act, the resolution adopted by said board As
the method of signifying the intention of said bank in the premises.
All other banks eligible to membership may use substantially similar
forms of resolution of acceptance and intention to subscribe to the
capital stock of Federal Reserve Banks to be organized."
In accordance with said regulation the committee has approved the
inclosed forms of resolutions.
To facilitate the handling and filing of these notices the alternative resolutions are printed on separate cards. You will observe that
the resolution on the inclosed blue card is in the form to be used should
your bank determine not to accept the terms and provisions of the Federal
Reserve Act, and the inclosi.d white card contains the resolution of acceptance.
You are therefore requested to arrange for the submission of these
resolutions to your board of directors as soon as practicable and to return promptly the form of resolution, duly certified, which is adopted by
your board.
Your acceptance or nonacceptance must be filed with the Organization
Committee on or before February 22, 1914.
For the consideration of your.board a copy of the Federal Reserve
Act is herewith inclosed.
Respectfully,

To the Cashier,
National Bank


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

December 27, 1913.

Sir:
It is the intention of the Reserve Bank Organization
Cotimittee to hold hearings in the City of Boston on the 9th
and 10th of January, 1914, for the purpose of enabling the
Comslittee to decide won the location of Federal Reserve
Banks and the gecgraphical limits of the districts to be
served by such banks.
The Committee will be pleased to have yru attend and
submit your views in the premises.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Chairman,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

41

1/

Form "L -3."

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

December 22, 1913.

Sir:
The Reserve Bank Organization Crmmittee intends to hold
hesrings in the City of Washingtrn, D. C., from Jalmary 12,
1914, to January 17, 1914, inclusive, and will be pleased at
that time to hear representatives of the Clearing House Association and of the principal business organizations of your
city. Ycu will be advised later as to the hour and place.

•
0

In addition to such oral statements as may be submitted,
written statements containing statistical or other information
bearing on the subject under consideration may be presented at
these hearings, which, in accordance with the provisions of
the Federal Reserve Act, will be held for the purpose of enabling the Committee to decide upcn the location of the Federal Reserve Banks and the geographical limits of the districts
to be served by these banks.
The Committee will be pleased to receive, at that time,
any information wnich may assist them in determining correctly
these questions.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Chairman,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION CON1411fEE
TREASURY DEPARTMENT
WASHINGTON. D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•
•

WASHINGTON, D. C.

Sir:
Your communication asking that you be given an allotment
of stock in a Federal Reserve Bank, to be organized, has been
received and filed.
When the districts have been establishea and subscriptions are asked for, if any public stock is to be offered,

•
•

your application will be referred to the proper authorities
for consideration.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tern
Reserve Bank Organization Committee.

Form

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMIME
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•
•

WASHINGTON, D. C.

Sir:
I am directed by the Committee to advise you that your
com:dunication making recommendation as to the location of a
Federal Reserve Bank, to be established, has been received
and file., and will be considered by the committee in determining this question.

•
•

Respectfully,

Secretary, pro tern,
Reserve Bank Organization ComAdttee.

\Form

910

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Your communication requesting the Reserve Bank Organization Committee to visit
for the purpose of
holding a hearing in reference to the designation of Federal
Reserve Cities' was duly received and considered.

S.

I am directed by the Committee to advise you that owing
to the limited time at the disposal of the Committee for
this purpose it will be impossible to incrcaso at this time
the number of cities at which hearings will be held.
In selecting the cities included in the itinerary announced the Committee endeavored to take into consideration
the convenience of other eligible cities, and will be glad
to have representatives from such other cities submit,
orally or in writing, statements giving their views as to
the proper location of Federal Reserve Banks, and as to the
Federal Reserve Districts to be served.
Respectfully,

Secretary pro tern
Reserve Bank Organization Committee.

Form cZ


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•
•

WASHINGTON, D. C.

Sir:
Your reqw-st for form of application for membership in
a Federal Reserve Bank to be organized has been received and
filed.

Blanks are now being prepared and a cooy will be for-

warded to you within the next few days.

•
*


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

.iecretary, pro tern,
Reserve Bank Organization Comnittee.

Orr) CZ

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•
•

WASHINGTON, D. C.

Sir:
In reply to your inquiry as to whether or not it is
necessary for the stockholders of a bank to take any formal
action in

accepting the provisions of the Federal Reserve

Act I beg to inclose herewith, for your information, a copy
of Regulation No. 2, adopted by the Reserve Bank Organiza-

•
•

tion Committee, bearing on this question.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Very truly yours,

Secretary, pro tern,
Reserve Bank Organization Committee.

0,SECRETARY OF THE TREASURY
W.G.Y
DAVID
USTON,SECRETARY OF AGRICULTURE
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

REGULATION NO. 2.

The Federal Reserve Act provides for membership of banks operating
under State charters as well as membership of national banks. No new
charter is contemplated in either case. Eligible banks beccme members
by becoming stockholders in Federal Reserve Banks when their applications have been properly approved and stock has been allotted to them.
Such subscription to the capital stock of the Federal Reserve Bank appears to be a matter within the province of the Board of Directors of
the subscribing bank. The Organization Committee therefore deems it unnecessary to require as a condition precedent to membership that the
stockholders should take any formal action.
Inasmuch, however, as the stockholders of a bank have the legal
right, by necessary vote, to force a solvent bank to liquidate, and if
dissatisfied with the action of the Board in becoming members might exercise this prerogative, banks desiring to take the precautionary measure of canvassing the sentiment of the stockholders may, by resolution
of their boards, submit the question to the stockholders either at the
next regular meeting or at a specially called meeting. This course is,
however, not insisted upon by the Organization Committee.
Those national tanks passing resolutions of nonacceptance on or before February 22, 1914, should, as soon thereafter as convenient, and
before the expiration of the twelve menthe prescribed in the Federal Re.
serve Act, submit their action to the stockholders for confirmation,
since nonacceptance of the provisiene of the Federal Reserve Act will
ultimately involve the liquidation of such national bank.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

0
•

WASHINGTON, D. C.

December 31, 1913.

Sir:
I am directed by the Organization Committee to acknowledge receipt of your communication making application for
employment, and to advise you that your application has been
filed and will b

•
•

given due consideration in perfecting the

organization of the necessary force.
Respectfully,

Secretary pro tern,
Reserve Bank Organization Committee.

Form


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

AL

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•
0

WASHINGTON, D. C.

December 31, 1913.

Sir:
I am requested by the Reserve Bank Organization Committee to acknowledge receipt of your communication and to state
that as soon as practicable the ComIdttee will prepare the
necessary regulations outlining the conditions under which
State banks and trust cmApanies ray become members, specify-

•
•

ing the conditions of eligibility, and will make the necessary rulings as to the legal effect of such membership in its
relation to liability of stockholders of such banks, etc.
Respectfully,

Secretary pro tern,
Reserve Eank Crganization Committee.

_......._..4/

I

,Forrn ._ 4/.._______
IIPIP

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•
•

WASHINGTON, D. C.

December 31, 1913.

Sir:
I am directed by the Organization Committee to notify you that the
hearings of the Committee to be held in New York on January 5th, 6th,
7th and 80, will begin at 10:30 cf each day and be concluded at 4:30,
wtth an intermissin of one-half hour for lunch.

It is the present

purposo of thl Committee to hold these h arings in the Customhouse, and

a•

if any change should be mde yru will be notified.
In order to facilitate 4 hic b,Isiness of the Committee and to subserv- th, convenience of thqse who desire to make oral or written state,
ments at these h ariogs, T will be at the Subtreasury on Saturday morn,
ing, tl-e 3rd instant, and will endeav.74- t. communicate with you from
there by telerhone or otherwise, with

8

view of fixing an hour on one of

the above-named dates that will be mutually convenient to the Committee
and you.
Respectfully,

Secretary pro tern,
Reserve Bank Organization Committee.

lo
7
111 - rrn

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE

a

WASHINGTON, D. C.

December 31, 1913.

Sir:
In reply to your letter submi,ting a propcsition to the
Reserve Bank Organizatior Ccmmittee for taking and transcribing bearings to be held by said Committee in various cities
in the t:nited Ftate=, T am directed to advise you that arrangements have been consurmatPd for handling this work,
which will obviate the f-cessity of having special reporters
accompany the Committee cn this trip.
Respectfully,

Secretary pro tern,
Reserve Bank Organization Cormittee.

oti

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

4

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

December 30, 1913.

Sir:
I am directed to notify you that the Reserve Bank Organization Committee has found it necessary to change the dates
for hearings to be held in New York, and it is now the intention of the Committee to hold these hearings on January 5, 6,

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7, and 8, instead of on the dates specified in the letter of
the Chairman dated December 27, 1913.
Respectfully,

Secretary pro tern,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMIrrEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

January 2, 1914.

Sir:
Your request for copies of the Federal Reserve Act has
been referred to this office for attention.

The copies fur-

nished this Committee are for distribution among the banks
applying for membership, and the Committee is not furnished
with a supply for geleral public distribution.

Having a few

extra copies on hand, however, I am inclosing you one copy
and beg to suggest if you need others you might apply either
to your Senator or Congressman, or may obtain same from the
Superintendent of Documents, Government Printing Office,
Washington, D. C., at the usual charge for such docun:ents.
Respectfully,

Secretary pro tern
Reserve Bank Organization Committee.

,

0r M


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITME
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

Sir:
Iour comiLunicabion reque;Ming ..:.1thority to act as trustee, administrator, or in cther fiduciary capacity under ihe
terms of the Federal Reserve At l'as been received and filed,

•

and will be referred to the Eo'acp.1 Reserve Board, when organ-


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

II

for its action.
Respectfully,

Secretor:: pro tam,
Reserve Bank Orgaaization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

Sir:
-,
ro,usted, please find incicged copi, s of the forms
reol').ticns apprcved by trT Reserve Bank Organization Uom.
mittee for use Ly the nationl banks in ::Agnifying their intent,i(!n to accept or not accopt the provision3 of the Federal
Reserve Ac G.
Respectfully,

Secretary pro tem,
Reserve Bank Organization Committee.

•

Form


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

/2._

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITHE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

Sir:
Your conmunication making application for a position
with one of the Federal Reserve Banks to be organized has

•

been receivec.

fn reply ,you are advised that the employes
-

of s!wh banks will be seleted by the officers and directors
of the n!deral Reserve Banks, and your application has been
accordim-71y filed and will be referred

o the proper author-

ities when such banks have been organized.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tern,
Reserve Bank Organiza-t;ion Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.
4110

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Your letter notifying the Committee that your bank accepts the provisions of the Federal Reserve Act has been receivel and filed.

•

In order, however, that cur records may

be complete, please fill out and return the inclosed card so
that it may be filed in regular order with ethar notifications.
Ji your Board has not passed

his resolution in this

particular form, it may do so at. its next meeting.

in the

v:antime your notification by 10,tr_r has, as stated, been
filed and will be treated as your acceptance under the provisions of the Act pending the rec-Apt cf the incloed card.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tern,
iieserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Your letter in reference to a bank building
or rooms for a Federal Reserve Bank if one is organized in your city has been received and filed,
and will be referred to the proper authorities
should this question come up for consideration.
Respectfully,

Secretary pro tern,
Reserve Bank Organization Committee.

O

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

4111


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
As requested, I beg to acknowledge the receipt of your resolution of acceptance of the
provisions of the Federal Reserve Act, which has
been regularly filed.
Respectfully,

Secretary,
Reserve Bank Organization Committee.

tara.
.

.
,xn,s
a—
....smkasvs . ..:1-0,-- o•..m....-,
,
.
' .,........v.i.r

.../.444

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

Sir:
Tour (..:mt3nicatiLn

di:;tric:t you crefer

slr.;uld a Fccicral Reserve Bank be located

to 13

in ti

via

lce

by ycc

and will 1).; (onsidrtild h

t:

ben received and filed,
0omittee at the ca
-riper time.

Respectfully,

c crotary,
.
:
Reserve Bank Organization Cemmittee.

,m•••••,.•••••!M••••••ie

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

II
K1
1
Form

I)

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In reply to your letter I beg to advise that the terms of the Federal Reserve Act do not contemplate that State banks shall be required
to signify within sixty days their acceptance or nonacceptance of the
provisions of th-1 Act, but it is optional with them whether or not they
wish to take advantage of this right which is given them.

The manifest

purpose of this provision appears to be to permit State banks and trust
companies which are eligible to membership to become members when Federal
Reserve Barks are originally organized, under such regulations as the
Federal Reserve Board or the Organization Committee may prescribe, but
no penalty is attached for failure cn the part of such banks to signify
their intention within the time specified.

They may later make applica-

tion for membership if they so desire.
Respectfully,

t.

-


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

••,,

• mrlcir •rt •11 ITT
.
7,-r1,:

Secretary,
Reserve Bank Organization Committee.

ADDRES3 REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Your letter asking for the proper construction of Section 19 of the Federal Reserve Act has been referred to this
office for attention.
In reply you are advised that as this section deals
with a question of regulation of member banks rather than O.
question of organization, it is one 'which will come within
the province of the Federal Reserve Board to determine.
Consequently any opinion expressed on the subject will
be without binding effect, and will necessarily be unofficial. In view of the fact, however, that the question has
been raised by a number of banks, it seems prOper to suggest
that in all probability the Board*vill look to the substance
rather than to the form of such transactions, and whether or
not a deposit is a time or demand deposit will depend upon
whether or not the owner of such deposit has the right to
demand payment at any time, or whether the time of payment
is definitely fixed at more than thirty days from date. In
other words, if the depositor may claim as of right the payment of such deposit within less than thirty days, such deposits would, in e.11 probability, be treated by the Board as
demand liabilities.
As stated, however, this opinion is unofficial and is
made in the form of a suggestion merely, in order to reply
to a /limber of inquiries submitted by the various banks.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITHE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

sir:
This office is in receipt of your inquiry as to whether
or not Section 22 will prohibit the payment of notarial fees
to officers or attorneys of banks.
In reply I beg to advise that inasmuch as this section
deals with a question of regulation of member banks when organized rather than with the organization of such banks, its
interpretation will properly be within the province of the
Federal Reserve Board when this Board is organized. Any opinion, therefore, on the subject, will necessarily be unofficial
and without binding effect. As the question has been submitted by a number of banks, however, it seems proper to suggest
that inasmuch as notarial foes are charged to the maker of the
note rrotested rather than to the bank itself, it is entirely
probable that the Board will not construe the receipt of such
fees as a vioation of the section in question. As stated,
however, this opinion is purely unofficial, and is made merely
as a suggestion, in response to a number of inquiries on this
subject.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

•

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Your application for employment with tho
Federal Reserve Board has been referred to this
(Mice for attention.
In reply I beg to advise that the same has
been filed and will be called to the attention
of the Board when organized.
Respectfully,

Secretary,
Reserve Bank Organiztioa Cc=ittee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Your letter as to your relative position nn the list of
banks accepting the provisions of the Federal Rserve Act has
been received and noted,

•

fn reply 1 beg t advise that a number of telegrams anl
letters were received simultaneously, and it is therefore
difficult to state definitely the numerical order in which,
they arrived.
Inasmuch as banks will continue to operate under their
original charter numbers, the order -If receipt was not deemed
of vital importance. A record was kept, however, and each
formal aoplication stamped in the order in which it was
opeoed, so that in the event that the banks desire to have
the certificates of stock issued by the Federal Reserve Banks
numbered in the order of their receipt, and the Committee deterfflines to adopt this course, the records will be available
for this purpose.
Respectfully,

Secretary,
Reserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COM/411'1TE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

Sir:
in reply to your coEmuica'Ann asking fm.' inforo7ation
as to The main points which the Conmittee desires to have
covred in the hearings 1;o be held 1. beg to advise that it
is difficult to answer this inquiry in concrete form.
The Committee desires all information of importance
bearing directly upon the subject of where Federal Reserve
Banks should be established, and why, and what districts
should bp served by such banks, and why. In determining
these questions the Committee his announced that it will
take into consideration as primary factors the geographical
convenience, which will include transportation facilities
with reference to the district to be served. Second, the .
industrial or comercial business of such sections, which
includes, of course, the trend of coffmerce and general movement of commodities dealt in primarily. Third, the existing
conditions of banking business generally, involving the
present methgd of exchange of credits, the transfer of cash,
etc.
While these features are among the impertart factors to
be considered, the Committee, as suggested, desires any information of interest bearing upon this subject which will
enable it to mach an i=rtial conclusion in determining
these important questions.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

*Respectfully,

Secretary,
Reserve Bank Organization Committee.

oral

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON. D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In reply to your inquiry as to whether or not all na-

tional banks are required to signify within sixty days their
intention to accept the provisions of the Federal Reserve
Act or only those located in reserve cities, I beg to advise
that the act is understood by the Committee to require all
national banks, irrespective of their location, to signify
their acceptance or nonacceptance of the Federal Reserve Act
within sixty days from its passage.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D.C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

As

requested I beg to inciose herewith the form of res-

olution approved by the Reserve Bank Organization Coffmittee
for use by all State banks and trust companies in signifying
their intention to subscribe to the capital stock and become
members of Federal Reserve Banks to be organized.
affl inclosing a duplicate card so that one may be retained in your file.

Those rololutions 'rave been printed

on cards to facilitate their filing and handling by this office.

lin returning same I will be obliged if you will have

filled out the information called for on toe reverse side of
the card.
Respectfully,

Secretary,
Re:;erve Bank Organization Committee.

4r-


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.

Sir:
reply to your inquiry a

to whether or not bl.nks will

be permitted to subscribe to mor.. than
,
six 11=:r cent of their
capital

Lock and surolos,

beg to .!civir;et that, under the

Committee's riling on the interpretation
of the Federal Re-

•

serve Act, all of the banks will be
limited to an amount
equal to six rer cent of their capital
stock and surplus at
the time that formal application is made.

Such stock will,

however, be issued in shares of one hundred
doliars each, and
if six per cent of the ca! ital and surplus
of any bank amounts
to a sum which is not divisible by one hundred, but
contains
an excess of a fractional part of one hundred dollar:1, any
such fractional amount will be treated as entitling such bank
to subscribe to an additional one share of one hundred dollars, and the number of shares allotted will be rind° accordingly.
Respectfully,

Form

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION C0NI141TrEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
By direction of the Reserve Bank Organization Committee
I inclose"hPrewith two cards which the Committee requests
that you fill out and return.
Tn determining tne important question; under consideration it is the Committee's desire to have before it as full
and comnlete information as possible, in order that it may
view the matters in question from all important standpoints.
As it is of great importance that the districts shall
be defined and the Federal Reserve banks rrganized with the
least possible delay, [ request that you return the inclosed
cards at your earliest convenience, so that the result of
this canvass of the sentiment of the varirus bankers may be
subnitted promptly to the Committee.
While it is preferred that the matter should be submitted to your board at a regular or special meeting. if thi.
will involve a delay of more than five days in returning the
inclosed, you are requested to take the matter up inr-rmally
with as many as you can reach conveniently, and fill in and
return thu cards without waiting to submit :he =ubject ti
your board as such.
An addrelsed envelope is inclosed for your reply.
Respectfully,

/
Secretary ;
Reserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Your letter advising the Committee that your bank wines
to formally signify its intention to subscribe to the capital
stock and become a member of the Federal Reserve Bank to be

•

established in your district has been received and filed.

In

order, however, that cur records may be complete, please fill
out and return one of the inclosed cards, retaining the duplicate for your own files.
These resolutions have been printed on cards in order to
facilitate their filing and handling in this office.

In re-

turning the same I shall be obliged if you will furnish the
information called for on the reverse side thereof.

Respectfully,

.
••••••••••eiam.•••••MOM.020.1.1.... 161.1.1.1L,00•••■••• .......
•

Secretary,
Reserve Bank Organization Committee.

Form

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,01
•••••••••••••

,

ADDRESS REPLY TO
RESERVE BAN K ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

•

RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.
February 6, 1914.
"1-17ORTANT.

To the Cashier.
Sir:
Although a very large Proportion of the national banks have
signifi-d their a000ptnoe of the provisions of the Federal Reserve Act,
correspondence reoeivod 13:i this office indicates that some banks are und-r he misapprehension that naLional banks have one year in which to
detenoine this question, in other insta000, it appears that the first
notice failed to reach the banks.
I beg, thnrefore, to call the attention of veur board to that portion of Section 2 of the PiTERAL RRVii ACT, whI(:h rc!ads as fellows:
"Under regolations to be prescribd b7 tho Organization Committoe
MEM NATFONAL BAYKING ASSOCIATLON in the Unite' States IS HEREBY REQUIRED, and every eligible bank in the f:nited states and every trust
comnooj -lithin the District of Columbia is hereby authorized, to signify in. writing WITHIN SIKW DAn AliTER
GF TEIL::; ACT, its
acceptanoe of the ..errns and orovisionS thereof."
The ("!rmittee his int.000r,fc,el this sootinn to iii2on +hit all rational banks shall be required to signify -their aco=ntance of the provisions of the Act W1THUI SIM DAYS from its passage, irreopoctive of the
location of such banks. Cards ointaining forms of resolution for signifying ecoeptanoe or nonaccontonce of tl-oi orovisions of the Act have been
mailed to all national banks. tf your board has neo alrtoidy acted upon
this cilistion and ha,4 not sent to this office the card bearing the form
of resolution adooted, I request that these alternative resolutions be
subTitted to your board as soon as practic;Ible and the card bearing the
resolot, on aoonted be mailed so as to reach this office NOT LATER THAN
FEBRUARY 22, 1914.
If you have not received the anproVed forms of resolutions, please
notify this office iftxediately and duplicates will be mailed to you.

Respectfully,

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary,
Reserve hank Organization Co=littee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

1Form

Sir:
Section 13, page 14, of the Federal Reserve Act provides, among
other things, as follows:

•

"Upon the indorsement of any of its member banks, with a waiver of
demand, notice and proteet by such bank, any Federal reserve bank may
discount notes, drafts, and bills of exchange arising out of actual
commercial transaction; that is, notes, drafts, and bills of exehenge issued or drawn for agricultural, industrial or commercial
purposes, or the proceeds of which have been used, er are to be used,
for such purnoses, the Federal Reserve Board to have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act."
It will be observed that the raper thus made eligible for rediscount is (iefined as that arising out of "actual commercial transactiens
* * * the proceeds of which have been used, or are to be used, for such
purposes."
The true definition of "commercial raper" or "commercial transactions" gives rise to a great difference of oninion on the part of bankers generally, and is susceptible of a very broad or very narrow interpretatiop. The point has been frequently raised, and insisted upon, that
cemmercial paper" in a purely technical sense should be construd to
mean OBLIGATIONS WHICH REPRESENT THE PURCHASE PRICE OF SOME COMMODITY
SOLD.
Attention has been called to the fact, however, that trade customs
in the United States have developed along lines which would limit such
paper to a proportionately small amount if this strict and technical interpretation were adopted.
In other words, the established practice now appears to be that instead of the purchaser executing his note to the vendor for the whole or
any part of the purchase price of the commodity sold, it has become customary, in order to obtain the benefit of cash discounts, for the purchaser to borrow directly from the banke and to use the prcceeds of such
leans to make the payment due the vendor. This being true the question
of identification of commercial paper presents some practicable difficulties.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-2In the exercise of the power vested in the Federal Reserve Board to
determine or define whlt shall be treated as "commercial paper" the Committee is of the opinion that the Board will desire to have before it
the views of practical bankers and representatives of leading business
organizations so that the matter may be considered from all important
standpoints.
With this end in view I am directed by the Committee to ask that
yo ur association give consideration to this provision of the law, and to
su bruit on or berore the FIRST OF MARCH, 1914, a suggested definition of
commercial paper" and also to submit such suggestions or recommendaions us to standard forms of notes, drafts, and bills of exchange covring the various kinds of commercial transactions as may seem to you
advisable, to the end that there may be established, as far as possible,
a uniform reactice among all Federal reeerve and member banks with respect to the creation of the eligible paper provided for in the Federal
Reserve Act.

The bill furthermore provides, in section 16, page 19, as follows:
"The Federal Reserve Board shall make and promulgate from time to
time regulations governing the transfer of funds and charges therefor
among Federal reserve banks and their branches, and may at its discretion exercise the functions of a clearing house for such Federal
reserve banks, or may designate a Federal reserve bank to exercise
such functions, and may also require each such bank to exercise the
functions of a clearing house for its member banks."
The Committee also directs me to request that you give consideration to this provision of the Act, and submit for its consideration suggested revelations governing the transfer of funds, and the charges
therefor, among the Federal reserve banks and their branches, and also
eubmit your views and suggestiens as to hcw the Federal reserve
banks
thelEselves could best perform the clearing house functions contemplated
in the Act.
Any suggestions that you may deeal advisable to make in
connecticn
with these two provisions will receive consideration and be
appreciated
by the Federal Reserve Board.
Respectfully,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

•
Sir:
By direction of the Chairman, I beg to
acknowledge the receipt, with thanks, of your very
kind letter of the 21st, giving the Committee the information desired with reference to the right of banks

•

incorporated under the laws of your State to enter the
Federal Reserve system.
Respectfully,

Secretary,
Reserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITItE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
On behalf of the Organization Committee I beg to thank
you for ycur letter of February 21st suggesting a definition
for cannercial paper and also outlining your views as to how
far a Federal Reserve Bank should exercise the Dowers of a
Clearing House Association.

•

I shall take pleasure in having your letter called to
the attention of the Federal Reserve Board when it is considering these important questions.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
A3 requested I take ploasuru
Regulation

a Guy of our

3, t7hic1i deals with tha conditions under which

State banks and trust companies may enter the Fede:cal Reserve
System.
Inclosed also find the form of resolution approved for

•

the u:;o of State banks in signif.;ing their intention to s1.11)scribe to the stock of the Federal Reserve Banks.
Respectfully,

Secretary,
Reserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

g_9
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
I beg to acknowledge the receipt of a resolution expressing the intention of yolw bank to apply for an allotment
of stock in a Federal Reserve Bank, and the same has been
filed.
When the Federal Reserve districts have been laid out a
form of application for such allotment T.7111 be prepared and
mailed by the Comptroller to all banks which have signified
their desire to enter the system.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

•

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTO, D. C.
:,

RESERVE BANK ORGANIZATION COMMITTEE

Form

WASHINGTON, D. C.

Sir:
Oa behalf of the Organization Committee I beg to advise
that, in designating the FederaL Reserve cities and in determinft,g the geographical limits of the Districts to be served,

•

the Committee gave careful consideration to the business convenience and v;elfare of the entire country, and all factors,
including the local interests of each bank, were studied and
fully weighed.
The certificate designating these Districts has been
filed with the Comptroller of the Currency, and the Committee ,
can not now legally make any changq in the Districts as defined.
Respectfully,

(

t•-•
•

Secretd- y,
r
--Reserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In response to your inquiry of recent date I beg to advise that the employes of the Federal Reserve banks will be
selected by the officers and directors thereof.

Application

should therefore be made direct to the bank with which you
wish to be connected, when the same has been established.
These appointments will not be subject to the Civil
Service rules and regulations.
Respectfully,

Secretary,
Reserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

111

_
RESERVE BANK ORGANIZATION COMMITTEE

-±
\Form jZ L..._

WASHINGTON, D. C.

Sir :
I am returning herewith for your files the duplicate
of Tour subscription to the stock of a Federal Reserve bank,
which was apparently inadvertently sent to this office with
the original copy.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

or

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Form

Sir
In reply to ;your inquiry of recent date, 1 beg to advise that all of the subscribing banks will be limited to an
amount equal to 6 per cent of their capital and surplus at
the time forml application is made.

Such stock will be is-

sued in shares of cue hundred dollars each, and if 6 per cent
of the capital and surplus of any bark amounts to a sum which
is not divisible by one hundred, but contains an excess of a
fractional part of one hundred dollars, any st.mh fractional
amount will be treated as entitling such bank to subscribe to
an additional one share of one hundred dollars, and the number of shares will be allotted accordingly.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Dank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON. D. C.

•

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

\Form

In response to your inquiry of recent date, you are advised that the boards of directors of the Federal Reserve
Banks to be established will select the quarters to be occupied by their respective banks.
Any suggestion or proposition which you may wish to present should be submitted to these officers when appointed,
notice of which will doubtless be given in the daily press.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

\
F

Sir :
Your communioaLiu.,. mcL,LL.,,; rec.cmmendation as to the
Federal reserve agent for the Federal Reserve Bank in your
district has been received, and will be so filed as to be
readily available for consideration by the Federal Reserve

•

Board, when organized and about to determine those matters.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Form

Sir
Inclosed find your application for stock in the Federal
Reserve Bank of your district, together with new fermi. Your
special attention is called to the section marked with blue
pencil, as the instructions therein contained should be carefully followed.
Kindly have this matter attended to and return one of
these blanks to this office with seal attached as soon as
possible, as no further step can be taken until your application is received in correct form.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

.MCCT
10110.40.7.,

-

Sir :
The application for stock in the Federal Reserve Bank
of your district, recently sent to this office by your bank,
has been found to be incomplete in that the necessary seal

•

does not appear.
T am inclosing the applicp,tion herewith in order tl'at
this error may be corrected, after v,hich kindl_y return
promptly, as it is necessary that these applications for
stock be complete in every particular before further action
can be taken.
Respectfully,

Secretary,
Organization Committee.
Reserve Bank

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON. D. C.
Wet

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir :
In response to your inquiry of recent datc, you are advised that it will not be necessary for your bank to make
initial payment on your application for stock in the Federal
Reserve Bank of your district until an official call is
issued.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

•
•
,^

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTO':, D. C.

•

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir
The application for stock in the Federal Reserve Bank
of your district is herewith returned in order that the infornation called for on the reverse side thereof may be furnished, as well as the signatures of at least three of your
directors.
Kindly have this matter attended to promptly and return
the blank to this office, as it is necessar, for these a:pplicaticns to be complete in every particular before further
action can be taken.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

v

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

RESERVE BANK ORGANIZATION COMMITTEE

.•
•

•.

2-0

. io

-••••••••,•••

WASHINGTON, D. C.

Sirs
In response to your communication of recent date, your attention is
called to the fact that on the face of the blank application for stock in
the Federal Reserve Bank of your district there is a space left in which
to state the amount that is represented by SIX PER CENT OF YOUR UNIMPAIRED CAPITAL AND SURPLUS at the time of making application.
On the reverse side of the blank your attention is especially called
to the following note:
"if 6 per cent of the capital and surplus above shown amounts to a
sum not divisible by 100, any excess or fractional part of $100 will
entitle the applying bank to one additional share of stock. Accordingly, in filling out the subscription on the reverse side of this
form, the sum representing 6 per cent of the capital and surplus
should be divided by 100 in order to obtain the number of shares to
be applied for, and if an excess of less than $100 remains, one additional share should be added to the application, and included in
the subscription of stock to be paid for at par in accordance with
the provisions of the Federal Reserve Act".which you will observe contains explicit instructions as to the manner in
which the shares and fractions of shares to which your bank is entitled
are to be computed.
Respectfully,

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE

•

WASHINGTON, D. C.
I

rrti

Sir

•

form of
find, in duplicate, the
As requested, inclosed
trust comuse of State banks and
resolution avroved for the
:: to the
their intention to subscribi
panies in signifying
Banks.
stock of Federal Reserve
form has
contained in the inclosed
,H!il the resolution
fill out,
of directors, kindly
been passed by your board
.the duplicate
these cards, retaining
sign, and return one 6'

411

for your files.
stock for.
for subscription to
The form of application
prepared
trust companies is being
the use of State banks and
printer.
soon as received from the
and will be sent you as
Respectfully,

if(

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary,
Committee.
Reserve Bank Organization

ara

-41

41,

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE

0.410

BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sirs
The C-mmittee having received cony of resolution of your board of
directors signifying the intention of your asseciation to subscribe to
the raplfal stock of /he Federal Reserve Bank of your district, I am inclosing herewith, in accordance with the provisions of the Federal Reservo Act, form of application, in duplicate, which has been approved by
the Cofimittee ior use by State banks and trust companies in applying for
stock in the Federal Reserve Bank now organizing in the district in
which your association is located.

MP'

In filling out this anplication you are requested to follow carefully the printed instructions, and your attention is particularly directed to the note on the last nage in reference to the number of shares
to be applied for. Your attention in also called to the fact that in addition to filling out and having certified the statement of condition of
Your bank, this aoplication should be accompanied by a copy of your charter, with amendments, together with a digest or analysis of same shoving:
First:

The general powers granted to your association, as a
corporation doing business in your State, which you
are now exercising and which you will desire to continue to exercise, so far as permitted by the Federal
Reserve Act.

Second: Those powers which, while granted, your association
, will not exercise should it become a member of the
Federal Reserve system.
it is the desire of the Committee that the Federal Reserve Banks
shall he placed in operation as early as practicable, and as it is assumed that you will desire to vote on the election of Class A and Class
B directors should your application for membership be approved you are
requestedi
return one copy of this application duly oxecuted at the
earliest possible moment.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON. D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In response to your communication requesting that your
bank be rlined as one c f the five ro execute the organization
,
certificate for the Federal Reserve Bank of your district,
beR to advise trat I shall take pleasure in calling your
srggetion to the attentioq of th(-, CoTmittee when it is rii.d

•

to take up this question.
Respectfully,

Secretary,
haserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
in response to your communication making recommendation
with refer,nce to one of the five brinks to be named to execute
,
the organization certifica:e for the Federal Reserve Bank
of
your district, I beg to advise that I shall take pleasure
in
calling your suggestion to the attention of the Committee
when
it in about to determine this matter.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully, .

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTO':, D. C.

RESERVE BANK ORGANIZATION COMMITTEE

I

WASHINGTON, D. C.

Sir:
In reply to your inquiry you Fre advised that tho
amount of your subscription rdlould equal 6 per cent of your
unimpaired capital and surplus at time of !raking al plication.
In making this calculation undivided profits should not
be included.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Colmittrie.

r

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTO.:, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

•

Sir:
This office is in receipt of $

in cun.ency,

forwarded by you to cover the initial payment on your subscrirtion to the stock of the Federal Reserve Bank of your
district.
113

it will not be necessary for your bank to pay Cre

first installwent until )fficial call has beea issued by the
Organization Committee or by the Federal Reserve Board, T nm
inclosing herewith check No.

for t

your credit on the Treasurer of the United States.

drawn to
Please

acknowledge receipt.
in dun course you

ill be notified when and in what

mnner to make payment of the first installment of your subscription.
Respectfully,

Secretary,
Reserve Bank Organization Committee.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
:,
WasuiNcTo, D. C.

•;

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.
•

Sir:
Your application for subscrintioo to stock in the Federal Reserve Bank of your district is herewith returned in
order that you may make the cnrrection indicated by the
blue-oencil mark.

•

This may be done on the i=erfect copy

returned, or by having filled out; the new blank inclosed.
Kindly have this matter attended to promptly, not failing to see thal, the sea] of your bank is affixed in the
proper place.
Until your application for stock i!3 received in correct
form no further stop can be takin.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respoctfully,

Secretary.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir
I regret that pressure of other matters in the office
has prevented an earlier acknowledgment of your communication with reference to appointments with the Federal Reserve
Board, but have had pleasure in giving instructions that
your letter is to be placed with matters to be brought to
the special attention of the Board when organized.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINgION, J5.c.
•

Sir :
On behalf of the Organization Committee, receipt is
acknowledged of your letter of recent date suggesting your
choice for appointment as a Class "C" director of the Federal Reserve Bank of your district.
As you probably know, the Federal Reserve Board will

•

have authority to make these selections.

I have given in-

structions that your letter is to be placed with matters to
be brought to the special attention of the Federal Reserve
Board when organized.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

so

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir :
This office has received from your bank a certificate of
election of a District Reserve Elector, as well as nominations
of a Class A and Class B Director for the group to which your
bank belongs.

•

Inasmuch as you have failed to complete these certificates by affixing the seal of ,cur bank in the space provided
for that purpose, new blanks are herewith inclosed, with the
request that you have the same properly filled out, see that
the seal of your bank appears as required, and return the
blanks to this office at the earliest possible moment.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.
11P

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir
This office has received from your bank a certificate of
election of a District Reserve Elector, as well as nomination
for a Class

•

Director for the group to which your bank be-

longs.
Inasmuch as you have failed to complete these certificates by affixing the seal of s our bank in the space provided
for that purpose, new blanks are herewith inclosed, with the
request that you have the same properly filled out, see that
the seal of your bank appears as required, and return the
blanks to this office at the earliest possible moment.
Respectfully,

Secretary.

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

o
dESERVE

•
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir :
This office has received a certificate of election by
your bank of a District Reserve Elector.
Inasmuch as you have failed to affix the seal of ..,our
bank in the space prepared for that purpo2e, a now blank
herewith inclosed, with the requ3st tha.5 jou have the same
properly filled out, see that the seal of your bank is placed
thereon, and returned to this office at the earliest possible
moment.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary.

0,SECRETARY OF THE TREASURY
USTON,SECRETARY OF AGRICULTURE
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
W.G.

DAVID

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M. C. ELLIOTT, SECRETAPY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:

Acknowledgment is made of your commiunication
addressed to the Federal Reserve Board, which will
be called to its attention when that body is organized and ready to consider such matters.
Respectfully,

Secretary.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

April 8, 1914.

Sir:
On behalf of the Reserve Bank Organization Committee I beg to direct
your attention to that part of Section 2 of the Act of Congress known as
the Federal Reserve Act, approved December 23, 1913, which reads as follows:
"When the Orgmnization Committee shall have designated the cities
in which Federal Reserve Banks are to be organized, and fixed the
geographical limits of the Federal reserve districts, every national
banking association within that district shall be required within
thirty days after notice from the Organization Committee, to subscribe
to the capital stock of such Federal Reserve Bank in a sum equal to
six per centum of the paid-up capital stock and surplus of such bank,
one-sixth of the subscription to be payable on call of the Organization Committee or of the Federal Reserve Board, one-sixth within three
months and one-sixth within six months thereafter, and the remainder
of the subscription, or any part thereof shall be subject to call when
deemed necessary by the Federal Reserve Board, said payments to be in
gold or gold certificates."
In accordance with the provisions of this Section and by direction
of the Committee you are hereby notified that your subscription to the
capital sfnek of the Federal Reserve Bank of Bosten should be forwarded
tn this office within thirty days from date. The approved form of application has been sent you by the Comptroller of the Currency.
As it is important that the organization of this bank shall be completed as early as possible, you are requested to forward your subscription promntly. The cocperation of applying banks will materially facilitate the organization of the Federal Reserve Banks and enable member
banks to avail themselves of the advantages of the Federal Reserve system by bringing into operation those provisions of the Federal Reserve
Act which become effective and operative when such Federal Reserve Banks
shall have been organized.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

,.:.--.--- ----.6

Secretary,
Reserve Bank Organization Committee.

•
TREASURY DEPARTMENT
WASHINGTON
COMPTROLLER OF THE CURRENCY

April 3, 1914.

Sir:
The certificate filed with this office by the Reserve Bank Organization Comittee, pursuent to Section 4 of the Act of Congress known as the
Federal. Reserve Act, approved December 23, 1913, designating twelve Federal Reserve cities and defining the geographical limits of the districts
to be served by such cities, describes District No. Nina, as follows:

4

"The States of MONTANA, NORTH DAKOTA, SOUTH DAKOTA, MINNFSOTA,
all that part of WISCONSIN not included in District No. 71 and all
that part of MCCHIGAN not included in District No. 7, with the Cit
,
of MINNEAPOLIS, Minnesota, as the location of the Federal Reserve
bank."
Since your bank is located in this district, I am enclosing herewith, in accordance with Section 4 of the act aforesaid, duplicate forms
of anplicetion for stock in the Federal Reserve Bank of Minneapolis, which
form has been approved by the Committee.
As soon as your board has passed the resolution prescribed by the
Committee and contained in this form, you are requested to execute, as
early as possible, this applicatien and mail it to the Reserve Bank OrganizaTion Committee in the enclosed envelope, which requires no postage.
Your prompt attention will expedite the organization of the Federal
Reserve bank for your district. You are accordingly requested to execute
and return this application without delay.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,
4 14akAragrichl24.rilr.1

Comptroller.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON. D. C.

RESERVE

BANK

ORGANIZATION COMMITTEE

WASHINGTON, D. C.

April 30, 1914.
SECOND NOTICE.

Sir:
in order to expedite the organization of the Federal Reserve Bank in
your district you are AGAIN REQUESTED to forward to this office, at your
early convenience, your application foe an allotmentof stock.
The form of application, notice from the Comptroller of the Currency
and from the Organization Committee, as required by the terms of the Fedoral Reserve Act, were mailed you on April 8th.
A compliance with the provisions of the Act makes it necessary that
YOUR APPLICATION SHOULD BE FORaRDED NOT LAT±R THAN MAY 8th--that is,
within thirty days after notice. It is of course desirable that the Federal Reserve Barks should be placed in operation as soon as nossible, and
to insure this the cooperation of nimber banks is important.
lnitial payment on these subscriptions need not be made until an official call is issued therefor, either by the Organiation Committee or
the Federal Reserve Board, at which time definite instructions will be
given an t, where such payments should be made, and in what manner. Information will also be furnished as to how this account should be handled
in your general ledger.
In filling in the blank form of application your attention is called
to the space left on the face, in which should be stated the amount represented by SIX PER CENT of your CAPITAL AND SURPLUS, as shown by the
books of your bank at the time of making application.
Full directions as to how this amount is to be figured, as well as
the manner in which you should handle any excess in this amount not divisible by one hundred, mqy be found in the printed "Note" on the reverse
side of the blank. On the same side the information called for should be
supplied in each of the spaces prepared therefor, INCLUDING THE SIGNATURES of three or more of your directors.
It is also necessary that the SEAL OF YOUR BANK SHOULD BE AFFIXED in
the proper place.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

June 3, 1914.

Sir:
That 'art of Section 4 of the Federal Reserve Act which relates to
the election of directors of Federal Reserve Banks provides that EACH
11,EUBER BAN:: shall ELECT BY EALLOT.a District Reserve Elector and shall
be. permitted to nominate one candidate for a Class A and one candidate
for a class B director.
In compliance with these provisions ycu are requested at a regularly
called meeting of your Board of Directors to ELECT BY BALLOT your District Reserve Elector, and to certify his NAME and SIGNATURE to the Committee on the form inclosed herein for that purpose.
The solo duty of the District Reserve Elector will be TO VOTE, on
behalf of your bank, for one Class A and one Class B director of the Federal Reserve Bank of your district. Any officer or director of your bank
or any other person mo.y be elected by your board to serve in this capacity as Elector.
At the same meeting of your board at which you select the Elector,
you are also requested to nominate a candidate. or Class A and a candidate
for Class B director, if you desire to exercise this privilege which is
conferred by Section 1 of the Act aforesaid.
Class A candidates should be representative of the stockholding banks
your district and may he officers, directors, stockholders or employees
of such banks.

of

Class B candidates must be engaged in agriculture, commerce cr some
other industrial pursuit in your district, and MUST NOT be officers, directors or employees of any member bank.
The statute contemplates that the nominees to be voted on by the
electors shall represent the voluntary choices of the member banks, and
it is of course unnecessary to emphasize the importance of placing in nomination candidates who will properly represent the interests of the banks
electing them.
Any eligible candidate in your district may be placed in nomination,
but only those NOMINATED BY BANKS IN YOUR PARTICULAR GROUP can be voted on
by your District Reserve Elector. EACH GROUP will elect independently one
Class A and one Class B director.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

•
-2-

When your bank has by appropriate action of your Board of Directors
selected its candidates you are requested to certify their names promptly
to the Organization Committee on the forms inclosed herewith for that purpose. When nominations have been received by the Organization Committee
ballots will be prepared showing all nominees of each group, and these
will be immediately mailed to the Electors of each group so that vote may
be taken as soon as possible.
All nominations should be returned to the Committee WITHIN TEN DAYS
after receipt of inclosed forms so that elections may be proceeded with.
Failure to send in nminations will be construed as indicating that your
bank does not desire to nominate candidates.
When the ballots are received by the Electors, each Elector will indicate on the respective ballots his first, second and third choices for
Class A and first, second and third choices for Class B director.
When this has been done, each ballot must be returned in a sealed
envelope to the Organization Committee, and in order that the spirit of
the Act may be fully complied with and that the voting may be free from
any improper influence, it is not the purpose of the Committee to make
public the individual vote of any Elector, but only the result as required by the statute.
In returning the inclosed forms please observe the following instructions:
WRITE PLAINLY, OR FILL IN ON TYPEWRITER THE INFORMATION CALLED FOR.
SEE THAT THE SIGNATURE OF YOUR DISTRICT RESERVE ELECTOR IS SIGNED ON
CARD INCLOSED FOR THAT PURPOSE.
THE
AFFIX THE SEAL OF YOUR BANK TO EACH CERTIFICATE.
RETURN ALL CARDS IN THE SELF-ADDRESSED ENVELOPE, HEREWITH INCLOSED,
WHICH REQUIRES NO POSTAGE.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,
•••,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•
RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

June 3, 1914.

Sir:
That part of Section 4 of the Federal Reserve Act which relates to
the election of directors of Federal Reserve Banks provides that EACH
MEMBER BANK shall ELECT BY BALLOT a District Reserve Elector and shall
be permitted to nominate one candidate for a Class A and one candidate
for a class B director.
In compliance with these provisions you are requested at a regularly
called meeting of your Board of Directors to ELECT BY BALLOT your District Reserve Elector, and to certify his :TAME and SIGNATURE to the Committee on -the form incicsed heroin for that purpose.

IP"

The sole duty of the District Reserve Elector will be TO VOTE, en
behalf of your bank, for one Class A and one Class B director of the Federal Reserve Bank of your district. Any officer or director of your bank
or any other person may be elected by your beard to serve in this capacity as Elector.
At the same meeting of your board at which you select the Elector,
you are also requested to nominate a candidate for Claes A and a candidate
for Class 13 director, if you desire to exercise this privilege which is
conferred by Section 4 of the Act aforesaid.
Class A candidates should be representative of the stockholding banks
of your district and may be officers, directors, stockholders or employees
of such banks.
Class B candidates must be engaged in agriculture, commerce or some
other industrial pursuit in your district, and MUST NOT be officers, directors or employees of any member bank.
The statute ccntemplates that the nominees to be voted on by the
electors shall represent the voluntary choices of the member banks, and
it is of course unnecessary to emphasize the importance of placing in nomination candidates who will properly represent the interests of the banks
electing them.
Any eligible candidate in your district may be placed in ncmination,
but only those N3MI1;ATED BY BANKS IN YOUR PARTICULAR GROUPcan be voted on
by your District Reserve Elector. EACH GROUP will elect independently one
Class A and one Class B director.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•
-2-

When your bank has by appropriate action of your Board of Directors
sele cted its candidates you are requested to certify their names promptly
to the Organization Committee on the forms inclosed herewith for that purpos e. When nominations have been received by the Organization Committee
ballots will be prepared showing all nominees of each group, and these
wilI be immediately mailed to the Electors of each group so that vote may
be taken as soon as possible.
All nominations should be returned to the Committee WITHIN TEN DAYS
after receipt of inclosed forms so that elections may be proceeded with.
ailure to send in nominations will be construed as indicating that your
ank does not desire to nominate candidates.
When the ballots are received by the Electors, each Elector will indicate on the respective ballots his first, second and third choices for
Class A and first, second and third choices for Class B director.
When this has been done, each ballot must be returned in a sealed
envelope to the Organization Committee, and in order that the spirit of
the Act may be fully complied with and that the voting may be free from
any improper influence, it is not the purpose of the Committee to make
public the individual vote of any Elector, but only the result as required by the statute.
In returning the inclosed forms please observe the following instructions:
WRITE PLAINLY, OR FILL IN ON TYPEWRITER THE INFORMATION CALLED FOR.
SEE THAT THE SIGNATURE OF YOUR DISTRICT RESERVE ELECTOR IS SIGNED ON
THE CARD INCLOSED FOR THAT PURPOSE.
AFFIX THE SEAL OF YOUR BANK TO EACH CERTIFICATE.
RETURN ALL CARDS IN THE SELF-ADDRESSED ENVELOPE, HEREWITH INCLOSED,
WHICH REQUIRES NO POSTAGE.
Respectfully,

1 cl/
4Secretary,
Reserve Bank Organization Committee.

I

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

June 18, 1914.

Sir :
On behalf of the OrganizaLion Committee, I beg to notify you that
nominations for Class A and Class B directors of the Federal Reserve
Bank of your district will be closed cn June 22d, and all certificates
of nomination must be in this office by that time in order for the names
of candidates to be included on the ballots to be sent to the District
Reserve Electors.
If you have not already done so, you are also requested to send in
election of your District Reserve Elector.
• promptly your certificate of
In this connection your attention is called to the fact that, while member banks are permitted but are not required to nominate candidates, the
language of the Act relating to the election of District Reserve Electors is mandatory, the statute providing that "each member bank in the
district shall elect by ballot a District Reserve Elector and shall certify his name to the chairman," etc.
In order, therefore, that the election of directors may be facilitated and that your bank shall not even technically violate any of the
provisions of the Act, you are requested to take immediate action in
electing a District Reserve Elector and in certifying his name to the
Committee on the form sent you for that purpose.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfull:„

/

.>",/
,2

Secretary. •

W101SECRETARY OF THE TREASURY
1
. G. MC
TON,SECRETARY OF AGRICULTURE
DAVID F.
JOHN SKEL ON WILLIAMS, COMPTROLLER OF THE CURRENCY

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D.C.

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

July 2, 1914.

THIRD NOTICE.

Sir:
Your attention is again called to the fact that your
bank has failed to send in the certificate of election of
its District Reserve Elector.
As previcusly advised, Section 4, of the Federal Reserve
REWIRES each member bank to take this acticn. In view
Act
of the fact that the part of the section referred to, which
relates to the NOMINATICIT of CANDIDATES, is permissive and
not mandatory, some of the banks are apparently still under
the misapprehension that it is optional with them under the
law whether or not they shall elect a District Reserve Elector. The ballots are now being sent to the electors whose
names have been certified to the Committee by the member
banks. If you have not already done so, your Board of Directors should immediately elect a District Reserve Elector and
certify his name to the Committee, in order to comply with
the statute and to complete the files of this office.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Please give this your immediate attention.
Respectfully,

/

Secretary.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D.C.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

SECRETARY OF THE TREASURY
W. G. MC
TON,SECRETARY OF AGRICULTURE
DAVID F.
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
H. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

or m
Sir:
Your notice of increase of your
(capital or surplus) has been received and
noted.

Blank forms are being prepared for

use in such cases and a copy will be sent
you as soon as received from the printer.
Respectfully,

Secretary.

SECRETARY OF THE TREASURY
W. G. MO
ON,SECRETARY OF AGRICULTURE
DAVID F.
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

1701:: :5)
.

Sir:
For your information and guidance
am enclosing herewith Regulation No. 1,
prescribi= the procedure in appeals from the
decis3.cr of tis) Reserve Dank Organizat'on Committee.
•

Respectfully,

Secretary.

•

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

•

, SECRETARY OF THE TREASURY
W. G. Mr
STON,SECRETARY OF AGRICULTURE
DAVID
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
M. C. ELLIOTT. SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
For your information and guidance I beg to inclose
herewith a copy of Regulation No. 1, prescribing the method
of procedure in appeals from the decision of the Rnserve
Bank Organization Committee.

•

Please advise this office if you desire tho petition
her6tofore filed treated as though filed under the rules of
procedure laid down by the Federal Reserve Board and set out
in the regulation inclosed, so that the proper notation may
be made and the Federal Reserve city notified.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tem.

, SECRETARY OF THE TREASURY

%V. G. M

STON, SECRETARY OF AGRICULTURE
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
DAVID

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

%...) Ir h

r

Sir:
In response to your request, I am inclosing herewith an
additional copy of Circular No. 3 of the Reserve Bank Organization Committee and the Federal Reserve Board.
Respectfully,

•

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary pro tem.

,SECRETARY OF THE TREASURY
W. G. M
STON,SECRETARY OF AGRICULTURE
DAVID
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

September 2, 1914.

Sir:
Through an inadvertence Circular No. 3, dated August 25,
and intended for banks in reserve but not in central reserve
cities was sent your bank.

It was not contemplated that this

information should be supplied by banks in Central Reserve
:
cities and the circular should have been accompanied by letter
explaining that a copy was sent you merely for your information and files.

It will therefore be unnecessary for you to

return the circular with the 'information called for.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tem.

,SECRETARY OF THE TREASURY
STON,SECRETARY OF AGRICULTURE

W.G. M
DAVID

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
M. C. ELLIOTT, SECRETARY TO

COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

r0rrn
1

1

-------- -I
-7--i

Sir:
In response to your request, I am inclosing herewith an
additional copy of Circular No. 3 of the Reserve Bank Organization Committee and the Federal Reserve Board.
Respectfully,

•

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary pro tem.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD
WASHINGTON

Sir:
For your information and guidance I beg to inclose
herewith a copy of Regulation No. 1, prescribing the method
of procedure in appeals from the decision of the Reserve
Bank Organization Committee.
mrprisitlAsia.11

Respectfully,

Secretary pro tem.

At a meeting of the Board of Directors of the
, duly
(Name of bank.)
called and held on the
.........

day of

.......

the following resolution was, on the

motion duly made, seconded anl adopted by the Board:

WHwaREAS this association has been designated by the
Reserve Bank Organization Committee as one of the five banks
to exenute thA organization clrtificate for the incorporation of the

al rr-11,-1r4d hy Sc)cti.en 4 of the At of Co-gress approved
D3cember 23, 1913, a,- (1 known as the Fed, ral Reserve Act.

1
'011, TIFBEFORF, BE TT RE2OLVFD, That the president or
vlee 'resident ard c?shier of this association be, and they
.erized, empcwered, and directed to execute
a-e horeby, authc
in the name and on behaLf of this asscciaticn said certificate, to affix the corporate seal of this bank thereto, duly
attested, and to do such other acts as may be necessary to
fully comply with the prnvisions of the act referred to in
perfecting the incorporation and organization of the said

I hereby certify that the foregoing is a true and correct copy of a resolution passed by the Board of Directors
of this bank on the date specified.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

........

.....

Cashier,

Natinnal Bank of ____

—40

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

District No. 12.

No. Shares

1914.

Receipt is acknowledged of your application for and subscription to
—

shares of the capital stock of the

FEDERAL RESERVE BANK OF SAN FRANCLCO, now organizing, and you are hereby
notified that the Reserve Bank Organization Ccmmittee ha2 allotted to you
the number of shares applied for, your subscription, in frlo.,rdance with
the provisions of the Federal Reserve Act, being for an amount equal to
6 per cent of your unimpaired capital and surplus as shown by your application, duly certified, dated

_

1914.

In due course. you will be notified by the Organization Committee or
by the Federal Reserve Board when and in what manner to tcake payments.

RESERVE BANK ORGANIZATION COMMITTEE,
by

Secretary.

To


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Natio' al Bank,

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

, SECRETARY OF THE TREASURY
W.G. M
STON, SECRETARY OF AGRICULTURE
DAVID
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
M. C. ELLIOTT, SECRETARY

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
For your information and guidance I bog to incloso
herewith a copy of Regulation No. 1, prescribing the method
of procedure in appeals from the decision of the Reserve
Bank Organization Committee.
Please advise this office if you desire the petition
heretofore filed treated as though filed under the rules of
procedure laid down by the Federal Reserve Board and set out
in the reulatien inclosed, so that the proper notation may
be made and the Federal Reserve city notified.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tem.

TO COMMITTEE

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

,SECRETARY OF THE TREASURY
W. G. M
STON, SECRETARY OF AGRICULTURE
DAVID
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
M. C. ELLIOTT, SECRETARY

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In response to your request, I am inclosing herewith an
additional copy of Circular No. 3 of the Reserve Bank Organization Committee and the Federal Reserve Board.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tem.

TO COMMITTEE

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

•

,SECRETARY OF THE TREASURY
W.G. M
STON, SECRETARY OF AGRICULTURE
DAVID
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
M. C. ELLIOTT, SECRETARY

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In response to your request, I am inclosing herewith an
additional copy of Circular No. 3 of the Reserve Bank Organization Committee and the Federal Reserve Board.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary pro tem.

TO COMMITTEE

•

•

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

, SECRETARY OF THE TREASURY
W. G.
STON, SECRETARY OF AGRICULTURE
DAVID
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY
M. C. ELLIOTT, SECRETARY

RESERVE

BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:

Acknowledgment is rfade of your communication
addressed to the Federal Reserve Board, which will
be called to its attention when that body is organized and ready to consider such matters.
Respectfully,

Secretary.

TO COMMITTEE

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITEEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In reply to your inquiry as to whether or not all national banks are required to signify within sixty days their
intention to accept tne provisions of the Federal Reserve
Act or only those located in reserve cities, I beg to advise
that the act is understood by the Committee to requireall
national banks, irrespective of their location, to signify
their acceptance or nonacceptance of the Federal Reserve Act
within sixty days from its passage.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:

As requested I beg to inclose herewith the form of resolution approved by the Reserve Bank Organization Committee
for use by all State banks and trust companies in signifying
their intention to subscribe to the capital stock and become
members of Federal Reserve Banks to be organized.
I am inclosing a duplicate card so that (11e may be retained in your file.

Those resolutions have been printed

on cards to facilitate their filing and handling by this office.

Fn returning same I will be obliged if you will have

filled out the information called for on tne reverse side of
the card.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Secretary,
Reserve Bank Organization Committee.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

SECRETARY OF THE TREASURY
W.G. MC
TON.SECRETARY OF AGRICULTURE
DAVID F.
JOHN SKELTON WILLIAMS. COMPTROLLER OF THE CURRENCY

0

M. C. ELLIOTT. SECRETARY TO COMMITTEE

•

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

July 23, 1914.

Sir:
On June 3 all member banks were notified to ELECT by their Boards
of Dirscters a District Reser:e Elector and to NOMINATE a candidate for
Class "A" Director and a candidate for Class "B" Director for the Federal Reserve Bank of their respective districts. Blank terms, approved
b: the Reserve Bank Organization Committee, were mailed to each bank for
use in reporting the names of their nominees for Directors and their District Reserve Elector. On June 18 and July 2 additional notices were sent
to all delinquent banks, calling attention to the fact that the statute
required each bank to elect a District Reserve Elector in order that such
bank might exercise its right to vote.
On July 4 preferential ballots were mailed to the District Reserve
Electors of all banks in Districts 10, 11, and 12 which had certified the
names of their Electors to the Committee. On July 6 preferential ballots
were mailed to such District Reserve Electors of the remaining districts.
Under the terms of the statute, the Electors are allowed fifteen days
after receipt of such ballots to send in their votes. All banks in the
western districts should have received their ballots, mailed on July 4,
not later than July 9 and all banks in the other districts should have received their ballots, mailed on July 6, not later than July 10. Therefore, electors in Districts 10, 11, and 12 should return their ballots,
duly executed, by July 24 (fifteen days after their receipt) and such ballets should be in •the hands of the Ccmmittee not later than July 29. The
electors in the other districts should return their ballots, duly executed,
not later than July 25 (fifteen days after their receipt) and such ballots
should likewise be received by the Committee not later than July 29.
You are accordingly hereby nctified that the polls will be definitely
and finally closed on August 1, 1914, and that no votes for Class "A" and
Class "B" Directors received after this time can be counted in this election.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,
RESERVE BANK ORGANIZATION COMMITTEE,

By

Secretary.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

April 8, 1914.

Bin
On behalf of the Reserve Bank Organization Committee I beg to direct
your attention to that part of Section 2 of the Act of Congress known as
the FederaL Reserve Act, approved December 23, 1913, which reads as follows:
"When the Organization Committee shall have designated the cities
in which Federal Reserve Banks are to be organized, and fixed the
geographical limits of the Federal reserve districts, every national
banking association within that district shall he required within
thirty days after notice from the Organization Committee, to subscribe
to the capital stock of such Federal Reserve Bank in a sum equal to
six per centum of the paid-up capital stock and surplus of such bank,
one-sixth of the subscription to be payable on call of the Organization Committee or of the Federal Reserve Board, one-sixth within three
months and one-sixth within six months thereafter, and the remainder
of the subscription, or any part thereof shall be subject to call when
deemed necessary by the Federal Reserve Board, said payments to be in
gold or gold certificates."
In accordance with the provisions of this Section and by direction
of the Committee you are hereby notified that your subscription to the
capital stock of the Federal Reserve Bank of Atlanta should be forwarded
to this office within thirty days from date. The approved form of application has been sent you by the Comptroller of the Currency.
As it is important that the organization of this bank shall be completed as early as possible, you are requested to forward your subscription promptly. The cooperation of applying banks will materially facilitate the organization of the Federal Reserve Banks and Pliable member
banks to avail themselves of the advantages of the Federal Reserve system by bringing into operation those rrovisions of the Federal Reserve
Act which become effective and operative when such Federal Reserve Banks
shall have been organized.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

/
• _it__
Secretary,
Reserve Bank Organization Committee.

TREASURY DEPARTMENT
WAS
COMPTROLLER OF THE CURRENCY
April 8, 1914.

Sir:
The certificate filed with this office by the Reserve Bank Organization Committee, pursuant to Section 4 of the Act of Congress known as the
Federal Reserve Act, approved December 23, 1913, designating twelve Federal Reserve cities and defining the gecgraphical limits of the districts
to be served by such cities, describes District No. Six, as follows:
"The States of ALABAMA, GEORGIA, and FLORIDA, all that part of
TENNESSEF, located east of the western boundary of the following coun.
ties; Stewart, Houston, Wa. ?ne, Humphreys and Perry; all that part of
MISSISSLPPI located south of the northern boundary of the following
counties: Issequene, Sharkey, Yazoo, Kemper, Madison, Leake, and
Neshoba; and all of the Southeastern cart of LOU(SIANA located east
of the Western boundary of the following counties: Pointe Coupee,
lborville, Assumption and Terrebonne, with the City of ATLANTA,
Georgia, as the location of the Federal Reserve bank."
.
Sinn your bank is located in this district, 1 am enclosing herewith, in accordance with Section 4 of the act aforesaid, duplicate forms
of application for stock in the Federal Reserve Bank of Atlanta, which
form has been approved by the Committee.
As soon as your board has passed the resolution prescribed by the
Committee and contained in this form, you are requested to execute, as
early as possible, this application and mail it to the Reserve Bank Organization Committee in the enclosed envelope, which requires no postage.
Your prompt attention will expedite the organization of the Federal
Reserve bank for your district. You are accordingly requested to execute

and return this application without delay.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

Comptroller.

,SECRETARY OF THE TREASURY
W. G. M
STON,SECRETARY OF AGRICULTURE
DAVID
JOHN SK ...TON WILLIAMS, COMPTROLLER OF THE CURRENCY

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
Receipt is acknowledged of your preferential
ballot, duly executed, indicating your first,
second, and third choices for Classes A and B
Directors in the Federal Reserve Bank of your
district and your vote has been duly recorded.
Respectfully,

,

Secretary.

To the District Reserve Elector
of the bank addressed.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-

/1 'f,'(:/

RESERVE BANK ORGANIZATION C

REPORT

SECRETIIRY

Pohl
-dory 18, 1914.

•.!


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TO

THE
RESERVE BAITK ORGANIZATION COMIITTEE;

IN order that the Committee, in determining the location
of Federal Reserve Cities and defining the districts to be served,
may have before it information on file in th3 office bearing on
these subjects, I beg to submit the following report:

A large number of letters, telegrams and postal-cards
have been received advocating various cities as the most
desirable locations for Federal Reserve Banks.

These com-

munications, which either represent voluntary suggestions
on the part of the senders or were sent in at the request
of organizations in th, cities interested, have been duly
acknowledged, classified and filed.
A record of th? endorsements of each city has been
kept and classified, as follows;

First; by national bans;

.second: by State banks and trust companies; third: by business organizations; and fourth: by individuals.
The result of this analysis of correspondence is shown
by Exhibit #1, attached hereto.

- 2In addition to this analysis of whrt may be termed
voluntary suggestions, this ofriee caused to be forwarded,
in accordance with the directions of the Committee, a circular letter to all national ban's, State banks, and Trust
Companies which have signified their intention of accepting the provisions of the Fedoral Reserve Act, asking such
banks to name their first, second and third choices of
cities which would in the order indicated best accommodate
the business convenience and serve the interests of the banks
in question.
4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The returns received from this official canvass of
the sentimeht of banks have been classified and filed so
rs to show according to States cnd cities the location of
the banks voting for each rarticultr city nrned as a proper
place for a Federal Reserve Bank. (See Exhibit il /2).
,
In the same circular letter such banks -ere requested
to submit a list of not less than eir-ht nor more than
twelve cities which would, in the opinion of their directors, furnish the best locations for the several Federal
Reserve Cities to be decir4nated in accordance with the
provisions of the Federal Reserve Act.

- 3These returns were filed and classif*eC according
to States so PS to show the number of banIcs in each State
voting for the cites name:::.

(See Exhibit 4 3).

In addition to this classification I have hrd prepared two sets of maps of the various States showing the
counties in such States, and on on

set have indicated

the county from which each voluntary suggestion emanated
and the city in which those sending in such suggestions
desired a Federal Reserve Brnk to be established.

(See

Exhibit #4).
In like manner I have ca- sed to be recorded on another
.(
'410


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

set of mars, showing the States and counties, the result
of the official count as shown by the cards seat in in
res "onse to the circul:r letter from this office above
,
referred to. (See Exhibit #5.).
These exhibits will show as far as can be determined
from the files of this

ffice the sentiment exrressed by

vrrious ban:-s, business organizations end individuals as
to where Federal Reserve Banks should be establishe - to
best sccomrnodate the convenience and interest of localities
involved.
;mticipating that the districts to be served will
not be coterminous': with State lines end that it will be


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4

necessary to divide such states along county lines, I am
filing with this retort, as Exhibit #6, photographic copies
of maps of various States showing the counties of each
State, the number of banks in each county, and the total
capital and surrlus of such banks in each county.

It is

necessary to examine this mar in connection with Exhibits
#4 and #5, since r number of counties show no response;
and in many instances this is due to the fact that no banks
are located in such counties.

Exhibit #6 is further in-

tended to enable the Committee to determine the available
capital by counties for the Federal Reserve Banks, when the
districts are defined.

EXHIBITS AT HEARINGS.
In order that those exhibits which have been made a
part of the testimony of witnesses at the various hearings
may be readily at han,, for the Committee's consideration,
I have had each such exhibit filed with the folder relating to the hearing at which such testimony was offered.
These have been regularly indexed showing by whom submitted
and the general subject matter.

While n separate index has

been filed with each folder, I have rlso attached to this
report a copy of each index so that the Committee may more

-5411..


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

conveniently call for any papers, ma-c or other exhibits
desired.

GENERAL CORRESPOriDE7CE.
Correspondence relatin,7 to matters other than the
establishment of Federal 7.eserve Citios rnd the geographical limits of districts to be served has been filed according to th3 subject matter to which such letters and
telegrams relate; and inasmuch as they involvo a number
of miscellaneous matters for the Committee's considerstion, will be made the subject of a separate report dealing with such matters.
Respectfully,

Z;ecretary.

-EXHIBITSIC•••=.1.=•
= =6"
.

EXHIBIT #1:

=m

une result of an analysis of the
Showing .
correspondence in the office relating to
proper locations for Federal Reserve Banks

Page

Showing an analysis oy States of tne first,

EXHIBIT

second and tnird choices of locaufons of
Federal Reserve Cities of ban;:s wnicn have
signified .
tneir intention of becoming
momoers of tne Federal Reservs, system. - - - - Page

EIIBIT


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7:

17

to E:chibits filed at various hearings - - Page

67


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RF_,SEIffE 3J..UK ORGAITIZ.22IOiT C0.1.2.1ITTEE.

EXHIBIT 4;-1.
with Secretary's Report)
(Filed

Showing the result of an analysis of
the correspondence in the office relating to proper locations for Federal
Reserve Banks.

11-1-tttlivitttt

Ranks
Yrom
Georcia

30

Trade
arcanizations,
7

CJonanies and
Individuals.
40
11

Jasoollaneoun

BALT moan
From
Lasoellaneous

14

erom
:dscellaneous

3

3

7

30TON
Fran
-isoellanoous

4

3

••••

am

UH-*LOTTT::
From
3outh Oarolina
'irom
:15,•er,Ile.r.aTas

51

1

1

UTT2 .TTA.N.)0(14,
,
.
Fran
:Iscellaneous
41.

•••

••••

2

2

•

'XiI3V10
:0'rom
I114nois
21
1 Jloarinc !1011.83
1 :*ocloratIon of
bankers
laohigan
19
1 Ulearinr: House
•••


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2

Dank3

orpanio
':r7aniza;;Ions

erom
::entlIalcy
Ohio
2ennesocio
Indiana
:?o3t V1rr7in1a
7:isoollanoDus
00

a.

•••

•••••

1
20
.,
4,
,)
,,
I
4.,

1

27

*ft

419
135
5
56
32
5

5

3

1
1,
1
2
/
•

•

;Iron
2 .. 1 carinr,-.
1
- isoollanoous

?rom
•.c)l)th Uarolina
1 'an3imrs

9

D
of*

•10

DAJIT.48
------5fron
locolianous

100
1
..or• .....

?rom
:lolorado
:11.)oollaneouo


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7
1

Trade
Banks

EL run*

Conanles
Individuals

1

Misco3lanso$

rORT ARTH
From
Taxas
1 Cloarinc, House
12

Oklahona

1r
1
.
.
41.01.1101000.114.11.401104.0.11111.0.111 11 01.0
.
.1111

.pALVF.STON
3

Miscqllanoous
1 Cloarinq Heiuse Assn.

IVUSTO
From
1
3

1 Cloaring H0U39

1

,I,Vp,
!VILLO
2

From riorila

KANSAS CITY

Visao9ri
2 Clourin

3

7

Houses

Oki ho
Miseellamlous

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

73

76

From KtIlf33.9
ArIng 14011398
3 Cle,
1 B.nking As:lactation

32
5

3

Trado Organi—
zations

Braikrt

ComvAni:o

LINCOLN
?ram
NebrawrA
1 Clearing Houso

••••••••ma10.••••••••

Frow
Arl:anaas
•••••.•
,
1111

Mincellannous

10000••
,

3

LquIsiqux
rrorn


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

#.1:'bm=t
Indiann
KIntuck7
1 Clearing Holm)
Miamissippi
Tennessel
Uiseellanloua

25
11
16
50

••• •
•
•

0

•.0 •


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
14. II

ml00m:qv)ar-;T:
1.1t7CC1(2
1
,
•

„

0

rnxyr
rd,loixs:

.1...a,n3I3

T.

:
az...11;tott-z 0,7, IA.
••••••••••••••••••••••••••••••••••••••••••••••••

1001.001••••••••••••••..

anor
,
i

tA

C.)slit; er7.1,/$3::,
t10.1,7
OTT T, 41.1[3131,7

op

•
.........,...00•0111111011.100

rt0

rt0037
74,110

Lg

7.1

GTO

-art.4123:47
uftia.q

69
irrula"!

no

arr v.m.r1
e
131osotztrii7
mat

9rd

,
1 1
,
2

3pinpT.A Tritt

7
,
srao cri:xt 000 7
•tm lArroo oz,a •
-tar
pooa mato
tkozt,.
:
7

r

SIMI:I=r 2

soru:AI=

0
11614Z

17.7.57
7
317r:43017

rfif:

9G


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•-mg 00: a1r.r301:0
;
.
Urf:"..t,1 il.11.07.
:
.

zrrt:7-?-tr
r.10.1*.,•7

CC1
,

17,41:

z

ca.t,7
et
c!. PrzOarra.
sr°cit.c..rr
-

3;4
:
7

tzoSta0

onootztrct0 ;
77.7.
• 3 "
tt
Lir

03rai. 'arra - ot0
J
-arrat,rilatitta:7
71:Tr.,? ATIZatraoe: raOix,a

uTv--raT.C. "

ov.00z.rirt
atm

-..tratl

trzwrizfracoa:
cloa
r..o:
;,..7.o.t
Taavf
6f5FATT7fik.if

-. "
5171747T 417275
- 7
004111.00.111.111.1••

130r,

trzirair

-ortgtopvt

gTP.
:?t

TY.mi

CV.0

Li


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7:
riTuTf. zzl A •
tramx,
oossacme",
Aon
Tad.T ussT0:117,7
'atax000
nircaota
,
, 11_7:7
urtookt rutc o,

owrow.-•••••••••••••••••?••••

( ' ITI:L )) TictotroTE

oTr.ilO3

D-21.1m

tirg=izationu

Individuals*

rc

:.liscelLzootia
;
I )1e.:,rin., ::ouse

Salt Lz-lm

2

303.1-.11C0t1C;
...g.ftpgb...WAINIWAWWWOONwWWIWO.P.NqWIWM40....

114.01.00.11.1....000000

.0 40 4.

•",

. 111.1
AAVi.171

From
C;oorcia

7
Olo.5rialc owio
:liccollulefous

6

1

1

1

4r
47 , , reel? r,t

Prca

54

z,:ohincton

29

i17
1 J1ortrin, Hot=
Diaritara L-3812.•
tw Officors of Olz,npis,
Supreitio Govrt
D. Urono
Cori
7
n
;A.ccollanocra
:.
a A.aolcz.
GOV,

From

3
1 Clearing 41cia3o
ace11;A1430t113LÀ


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•••
......

•••••
........

:1?

41111.11111••••

••••••••••

.........
vb.. ow/.1810••••••


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.1/1.114.1.111.1.11.0.111111Te.

ovv; =curly

....••••••ago re *wow

vv.
• OW.* O...+PM

••,••••
A*

•••

••••••••

Al.

' ootrarici :la4.Z0 T
:7
0"
our:iT "3111.1. ?pro
onoaar.troo T,7
motza
*7 7 Z 7 776
-

...per* or

aus.
el.ea,
•••••••
•••••••...
...011 en•
00

mo......•••••••••••••••••••••• &WOO

Om

0054110.1.16.111.41.1.SIMS

41.0

f.r.:XOZT,

•••

••••••0•••+•••-•••4

••••••••••• •••
.....

M.O.

9Z1

SRO MallGO

"ert:;"•—•.,p

..110•00•••••••1110.111011..1111•11111 410M11...111.0

•

tao- :',:?xtv„rz:o- "1:
c3
cnootzt::/tootr,

LT

••••••••••••••••••

A

Pe Ow •••• •••••••• ens

•••000.1n/t•MIANe.••••••1111/

°alio <Th.rc.t( or.
MAO Ottlq1:00
01711.07T
Or>

TT

jr. CV:
0

ttrt-ti.T -ek ?1,
:
eitractum

littO 1,1::

mrtzu
,!
nrerr

4.7

0Sr,
aU f,
G110OUTIIIOCCT
et
trO2TLIDT:
saa,O.raci
JO 1101 .1.17.10p0,-.7
avoT
OTOUTTTI
404•41000•44 4. 40
.
0 41 .
0
CIF :
if
•

Grid:10miT002T

VOO
•••

••••

.00

.0.

a.,

4
0.

sti.OetzuT T 001::
01311 tlq,t10(::

Earn.* HO
••
•
-

•

0,4

..••

SZLOOLZUTTOOCT „
L10.12.

Koz
iE:c
▪

••••

110 ....
..

•••

Cr.0:01rirE 0;:g7,
••••••••...

:1Is.
464
,

▪

••••

traC4.iIrecalC
4f.)017:•
04.
k7

•:!-;12CELI'111:7:
TT

• itTzp TA.
s 'mu
C acuv,
..:tztoc


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
41.1111

or:comq o

••••

.111!

T

stun;azTuV:.7.(
:

,

-----------

cLocietri:t ()co
ovezo o

Do

OD

OD

.....

+Pk

••••

••••••

00

••••••

••••

4..

•
.1.

we•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•-•

Sin
OUVE Ot)C
C'EnCOL

•DD

.........

DO

,
O.

.111.

OD

Sep

.•

Wm.

arr

we-

*unity tutctitiuJ•

vtzT 0.113:7,

1
,
0

OD

DO

vtoc
rava

OP

anotrok.TE OCCT
,
corno',; artare.oL-

ar1:77177.7
.4C
Ow

O.

VAN

4.0

a
Mt...Qom- otri
vitryarut 4,ri*,:

13

vaxirr pit/
0oc,cetza0,7,
eptv;,5310:,

1.1

9(..7
GE;
•s.;TvnyTit.lp7.37
cc)Tuzac

auOT Var.Ttror
ria
C7:71ti,

Trade

EL Paso

2.[!
1,: IL.,.....4t

Migcoilaneolln

Co:1-;anias
2..Ltilaylua_1

1

From
1 Clearing House
22
•41.•

Mi53c911anaous
1 Clearinc House Azsn.

...s.IwNam.4wNsws.o.u.rgh.rs.rnellLklf•alirslli .,INumeo4Rnmrtrarnwonedn...
.

Prom
Tlxas
1 CluarIntl!, Hou3i3

3

.42.41L2:21. 1A1
Fron rlori3a

K3

CITY

From X4inas
3 C16)Aring Houses
,
1 13 nking Aslociation

73

Uissouri
2 Clearinr Houses

76

Okllhoma

32

Miscellaneous


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5

3

'7

.•••

•

a

Orin

OS
9T
6GT

8

v ctn., rtoo
taiz troj,
vidtoutcom
nal/ !..jtTJOt3

TT
tItiVi pu
utolgttv


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
L10.24

771U Till7r
53110 01117 ttiDtii 11

7.1177711
-

systary

112.)0ii

otmoti ‘,..tuTaioto
1.10,14

77517fr
A fiTIT

v tur.owo3

SIM I q.132
ut11.10 to ps.x

sotmt

(:):111.410

C
!Qat!.

OD
.147ja,t7.4"ii
1 ,

TOT,21CtCCOO
7
3
OCOIL-n(3a=

tr.

•••

.....n•rw...m.....***16

6
41,

ot
i. C11

26

,

rzi

69

north LOt

7

119

57

rrarz
F.;etral

Dorikatzt
:.-iiacolanrscoufl

tj!

Zirlabviii
Prec2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CIZZ.0f.)
104

7

••••••

a121t).

1

t.i

,
r)
okr

0.

,
.2.se.ellaLnicataa
...11.0.16•00111

cot.: anIce

Trate

.Yrora
2

AS•

,..7`rort
::43%7 tienx)

ikutl- 1.4:
.

••••••••.•••••• n• •

Ih'. Virin.ii

1

i.

:;2cauleylvallla
Giocr.Ir LUX.an.

•

Portlarld.
...
srOsa

cL,31
...1,12• AO
•

•11.1.411M•VI.

•
O..

.44.0zacnu
'MI
i;;i•7. Cc24r

53

fiD

.1:(1•1'!
1
7

V6
12rOci
south 0c,ru11na


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1 Clotarlrc; ouc Lsana,

:A2

•:€


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

;
r

Zianks

O.1243

j.1411v ld'av,
a.

molls

Florida
Goo rcia
I3oirrpt
Iebrcto2m
:Jew
Tex=1. coo
;

3.C;
3.

4

3

Tomas
V

Trc.tio
Or-v:rd

7

ST LOUIS

Companie
Indiridaals

Tr,Lde
(Jrz;anizations

From
r.!_issouri
1 Clenzirc kiouse
11

7

2 Olearir. Homo

•

7147n1
ce1172,210012
Cle r'..17inr

c;

17
07.1 SO

Front
niseellanoous

2
...•••••••••••••••••••

From
Tezrz

1
..

01•••00

aiton D. C.
:1'1)12
.;::.1Sc.:011a1100110
licrase
1 [AM.
1 Doprt. Finance

18
-a

...01•8110

orn
JISCIS State


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1

........

`.2re,Clo

1.LI)

OrT,anizatlems

Compcziet)

dividuals•

:Prom
LijctiL 2O3
3.

1

----,—.—..-

Salt

Logo

Prom

Goortaa
1

7
rite, ::cfttot,
Illscollcmoo=

1

1

1

miliillor.rommeema•roiroura

6

.....

......

L7ram
54

10

I amIrinr.: Ronne
BarAwro -son.
Offlcors of Olwr,Tirl
Suprome Co1,2rt
Gov. E. De Crow
7

1
..
........0114.0
\
,
0.1

0...............

.13111.3gt071
01ri;,OX-11
ZA,aCt.11.4...LW


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IESERVE BAD( ORGLITILATIOIT

E•

EXHIBIT #2
(Med uith Secretary's Report)

Showing an analysis by states of the
first, second and third choices of
locations of Federal Reserve Cities
of banks which have sicnified their
intention of beccminc; members of the
Federal Reserve system.

ALABAMA

Cities suggested as Federal Reserve Cities by bas in
ALABAMA classified so as to show first, seco_d and third
choice of banks voting.

Suggested loc%tion for
Federal Reserve Bank.
FIRST CHOICE
Birmingham
Atlanta
Montgomery
Hew Orleans
Savannah
St.Louis

A(


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

SECOND CHOICE
Atlanta
New Orleans
Birmingham
Cinciinnati
Nashville
Louisvi113.
Chattanooga
Savannah
Montgomery
Mobile
St.Louis
Mempllis

THIED CHOICE
New Orleans
Atlanta
Savannah .
Cincinnati
St.Louis
Chattanooga
Menphis
Birmingham
Montgomery
Louisville

No. of banks voting
for city suggested.

52
7
a
3
3
1

32
9
0
3
3
2
2
1
1
1

25
13
4
3
1
1
1

•
ARIZONA

FIRST CHOICE
San Francisco
Los Angeles
Kans-,s City

SECOND CHOICE
Los Angeles
San Francisco
Denver
Kansas City

A


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
3
1
1

THIRD CHOICE
Denver.
Chicago
Phoenix
St.Louis
ElPaso

A

7
2
1

1
1
1
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LRKANS

FIRST CHOICE
St. Louis
Kansas City

45
2

SECOND CHOICE
Kansas City"
Chicago
Memphis
'New Orleans
St. Louis
Dallas
Minneapolis

12
11 •
5
5
2
1
1

THIRD CHOICE
New Orleans
Chicago
New York
Kansas City
Little Rock
2t. Smith

11
7
4
2
1
1

CALIFORNIA

4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FIRST CHOICE
San Francisco
Los Angeles
Fresno

175
22

1

SECOND CHOICE
Los Angeles
San Francisco
New York
Portland
Oakland
Sacramento
Chicago
Fresno

66
24
4
4
4
A
3
1

THIRD CHOICE
Portland
Seattle
Los Angeles
Chicago
Sacramento
San Diego
Dcnver
St. Louis
Kansas City
Fresno
Oakland
Reno
Stockton
Salt Lake City
San Francisco

14
6
5
4
4
3
2
2
2
1
1
1
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

COLORADO

PIIIL'T CHOICE
Denver

V9

SECOND CHOICE
Kansas City
Omaha
Chicago
Lincoln
St. Louis
Salt Lake City
Pueblo

32
23
17
3
3
3
1

THIRD CHOICE
Omaha
Kansas City
Chicago
St. Louis
Lincoln
San Francisco
New York

24
23
12
11
4
2
1

S


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CONNECTICUT

FIRST CHOICE
New York
Boston

.50
6

SEC011. CHOICE
Boston
New York
Philadelphia
Hartford
New Haven

35
5
2
1
1

THIRD CHOICE
Philadelphia
Hartford
Boston
Middletown
Springfield
Albany

23
3
1
1
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DELAUARE

FIRST CHOICE
Philadelphia
Baltimore

23
1

SECOND CHOICE
New York
Baltimore
Philadelphia

16
3
2

THIRD CHOICE
• Baltimore
New York
Washington
Boston

4
3
2
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DISTRICT OF COLUMBIA

FIRST CHOICE
Washington

12

SECOND CHOICE
Baltimore
Philadelrhia
New Yorlt

10
'1
1

THIRD CHOICE
Philadelpnia

11

•
OF


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FLORIDA

FIRST CHOICE
Atldnta
Jacksonville
New Orleans
Savannah
Richmond

16
13
4
3
1

SECOla) CHOiCE
Atlanta
Savannah
New Orleans
Richmond
Baltimore

16
11
4
2
1

THIRD CHOICE
Savannah
Richmond
Atlanta
Birmingham .
New L rleanaL
)
Jacksonville

11
8
3
4
2
2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

GEORGIA

FIRST CHOICE
Atlanta
Savannah

83
16

SECONDCHOIGE
Savannah
Atlanta
Chattanooga
Richmond
Baltimore
Washington
Jacksonville
Cincinnati
Nashville
BirmdInglamm
Macon
New York

42
16
3
6
3
2
2
1
1
1
1
1

THIRD CHOICE
Richmond
New Orleans
Birmingham
Baltimore
Atlanta
Savannah
Louisville
Columbia
Augdsta
Montgomery
Cindinnati
Washington
Nashville
Chattanooga

22
10
9
8
4
4
3
3
2
2
1
1
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FIRST CHOICE
Salt Lake
Portland
Spokane
San Francisco
Omaha
"C#icago

11
9
7
7
2
2

SECOND CHOICE
Portland
San Francisco
Denver
Minneapolis
Chicago
St. Paul
Omaha
Salt Lake
Kansas City
New York

13
9
5
3
3
3
1
2
1
1

THIRD CHOICE
San Francisco
Omaha
Seattle
Chicago
S
Salt Lake
Spokane
St. Paul
Portland
Twin Cities

15
6
4
3
3
1
1
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FIRST CHOICE
Chicago
St. Lou,is

SECOND CHuICE
St. Louis
Chicago
New York
Peoria
Indianapolis
Evansville
Milwaukee
Cleveland
Detroit
Minneapolis
Cincinnati
St. Paul

295
109

103
99

4
3
3
2
1
1
1
1

THIRD CHOICE
3t. Louis
New York
Indianapolis
Cincinnati
,Kansas City
Chicago
Peoria
St. Paul
Cleveland
Boston
Joliet
Pittsburg
Evansville
Omaha
Washington
Grand Rapids
Lanneapolio
New Orloand
Rock Island
DuluthLouisville
Cairo
Denver
Springfield

28
25
20
14
10
8
4
3
2
2
2
2
1
1
1
1
1
1
1
1
2
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INDIANA

FIRST CHOICE
Chicago
Cincinnati
Indianapolis
Louisville
St.Louis •

130
6Z

19
14
2

s.:corp

CHOICE
Chicago
Oincinnati
Indiana,olis
St.Louis
Louisville
Now York
Cleveland
Philadelphia
Pittsburgh
Wa hington
Kansas City

map CHOICE
St.Louis
Cincinnati
Chicago
Louisville
Indianapolis
New York
Cleveland
Pittsburgh

67
53
27
20
20
5
2
1
1
1
1

54
37
29
26
14
4
4
2

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EVL

FIRST CHOICE
Chicago
Des Moines
Omaha
Minneapolis
Sioux City

SECOND CHOICE
MinneaDolis
Omaha
Chicago
Des Moines
Sioux City
St.Louis
St.Paul
Kansas City
Cedar Rapids
'Jew York
Boston
Dubuque

THIRD CHOICE
Omaha
Des ri.oinr.)s
Minneapolis
bt.Louis
Aansas City
Onico
ot.2aui
vevenpur'*;
Sioux City
Boston
irew York
Denver

g44
16
14
6
5

38
38
36
29
17
12
8
8
5
5
2
1

32
20
33
lb
LU
7
4
3
2
2
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

KANSAS

FIRST CHOICE
Kansas City
Wichita

SECOND CHOICE
St.Louis.•
Chiaazo
Omaha
Kansas City
Wichita
St.Josenh
Topeka
Lincoln
Kansas City,Kans.
New York

TfiIRD CHOICE
Chicago

Staouis
New York
Omaha
Topeka
Lincoln
Denver
Bt.2aul
Vac:lita

65
49
4
3
3
1
1
1

59
42
6
4
3
2
1
1

f

9el
110110••••••••00

Csi:T
••••••••rvion.wor

PT.10":1110

•

..-.3angsq1V,
010
7 A 1,911
Eueovo !or,
ITIATM
0
evc

ts,

GtI loTn°r1
I: A"TA.
CT dvatiol
TrantaAGTO
ipsuu owl*
arioTtto
oouln yoga
met/2"ttpliai:Lr.,
t4T
° -1T.Va
1114.1143p1

.
'A.:;301141I:17


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

KENTUCKY

FIRST CHOICE
Louisvi le
Cincinnati

90
33

SECOND CHOICE
Cincinnati
LouiLxille
St.Louis
Chicago
Nashville
Atlanta
New York
Baltimore
Albany
PittsburghRichmond

bl
27
16
10
4
3
2
2
1
1
1

THIRD CHOICE
Chicago
St.Louis
Cincinnati
Richmond
Atlanta
New York
Nashville
Memphis
Indianapolis
Chattanooga
Boston
Cleveland
New Orleans
Baltimore
Knoxville
Louisville
3irmingham

32
18
12
15
6
4
4
2
2
1
1
2
1
1
1

41,4,

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LOUISIALIA

FIRST CHOICE
New Orleans
St.Louis

21

SECOND CHOICE
St.Louis
New Orleans
Memphis
Dallas
Chica-o
New York
Atlanta
Houston

8
2
2
2
1
1
1
2

THIRD CHOICE
St.Louis
Atlanta
Dallas
Chicago
New Orleans
Memmhis
Houston
Shreveport

4
3
2
2
1
1
1

A

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

MINE
FIRST CHOICE
Boston
New York

57
2

SECOND CHOICE
Nev York
Boston
Chicago

34
2
1

THIRD CHOICE
Philadelphia
New York
Chicago
Washington
Albany

15
10
3
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LIARYLAND

FIRST CHOICE
Baltimore
Washington
New York

93
1
1

SECOND CHOICE
Philadelphia
Washington
New York
Baltimore
Pittsburgh
Cincinnati
Richmond

23
23
12
6
4
.1
1

THIRD CHOICE
Philadelphia
New York
Washington
Baltimore
Pittsburgh
Hichmond

19
12
13
5
7
0


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

MASSACHUSFTTS

FIRST CHOICE
Boston
Now York

130
7

SECOND CHOICE
New York
Boston
Springfield
Providence

69
12
1
1

THIRD CHOICE
Philadelphia
Albany
Chicago
Washington
Springfield
New York

12
11
5
4
2
2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

L:ICHIGAU

aond

Tn.

ootaa..............,.....
3
Chicmgo..****..............73
•
Oinoinneti•• •a a 4,.....* 4.
7 1=10•* A • 9 •#
1CA 0

•

••
•6 •0 •

• ••
DOtrOit• •• • ••••

1amazoo..•.4
.1i1Va1

00 +000

2,2

Third
• 1

4•414.

16
2
4

0.04111•

844
00** ,

6 0 2 11. •
•

304***

••e02 162.600

6
00444.0 00afao v••••

21nnoapo2.is....

0.1114440

,
, ,4.4
000 4
***** 044

1

6*6040

,
4 ,O0O•

o0.04040

• *

Yi.nrid3 II •

0•.400

r,

SI

041000.44

•2 6 1

•

4
• • I *

000000

4.001004,

0414s00

ve1.1.04*

:jar; rork.. 4

•6 •

0,440100

7
S..... •L

14000 ******

***O.*

060060

00,440410M,

4114,..00

",.••• J.

a 0 6 • 11 1 4

Twin Cities.*
(3t.Pnall or

Total

*

MICHIGAN

FIRST CHOICE
Chicago
Detroit

'


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

SECOND CHOICE
Detroit
Chicago
1J.lwaukee
Minneapolis
Cleveland
rew York

25
L3
5
3
1
—

THIRD CHOICE
Cleveland
New York
Cincinnati
Chicago
Minneapolis
Grand Raids
Detroit
Milwaukee
Toledo
Boston
Muskegon
Ealamazoo
'St.Paul

15
7
4
3
3
3
3
1
1
1
1
1
1

MISSISSIPPI

FIRST CHOICE
New Orleans
Memphis
St Louis
iirmingham

SECOND CHOICE
New Orleans
Memphis
St.Louis
New York
Mobile
Cincinnati

THEM CHOICE
Atlanta
Memphis
New Orleans
Chicago
fredazgaz
Birmingham ,
St.Louis
Mobile
Cincinnati

40
-(


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

15
7
4
1

7
7
5
1
1
1

3
3
3
2
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LIJ:30URI

FIRST CHOICE
Kansas
St.Louis
Chicago

60
44
4

SECOrD CHOICE
St.Louis
Chicago
Kansas City
New York

40
10
22
1

THIRD CHOICE
Chicago
St.Louis
Kansas City
Springfield
Omaha

39
6
3
3
1

•
MINNESOTA

2IRST CHOICE
Minneapolis
St.Paul
Chicago

SECOND CHOICE
St.Paul
Minneapolis
Chicago
Detroit ,
'Sioux City
Lalwaukee

-f


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

THIRD CHOICE
Chicago
St.Paul
Duluth
Fargo
Mankato
St.Louis
Linneapolis
Dubuque
New York
'Sioux City
Milwaukee
Detroit

181
49
0

150
23
2
1
2

164
9
7
2
2
1
1
1
1
2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LIONTAITA

FIRST CHOICE
Minnearolis
St.Paul
Spokane
Chicago

SECOND CHOICE
Chicago
.St.Paul
Minneapolis
Seattle
Omaha

THIRD CHOICE
Chicago
Spokane
St.Paul
Denver
St.Louis
Omaha
New York
Seattle
Portland

19
10
3
3.

a
13
9
1

22
7
3
2
2
1
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NE3RASKA.

FIRST CHOICE
Omaha.
Lincoln
Kansas City
Chicago
Sioux City
Denver

166
17
7
5
3
1

SECO:D CHOICE
Chicago
Lincoln
Omaha
Kansas City
Denver
Sioux City
St.Louis

100
46
24
9
6
4
1

THIRD CHOICE
Chicago
Kansas City
St.Louis
Lincoln
Idinneapolis
Denver
Omaha
Sioux City
St.Joseph
New York
Fremont
St.Paul

47
38
24
22
9
5
3
3
2
3
1
1

HET:111A

FIBS: CHOICE
San Francisco
Salt Lake

Second choice
.San Francisco
Salt Take
Los Angeles

5

2
2
1

CHOICE
Denver
Omaha

4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3

•
NEW HAMPSHIBE

FIRST CHOICE
Boston

49

SECOID CHOICE
-New York
Boston
Concord

27
3
1

Third Choice
Philadelphia
Boston
New York
Albany
Chicago
Atlanta

:4'


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

9
2
0
1
1
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NE'r; JERSEY

FIRST CHOICE
• New York
Philadelphia
. Boston

120
66
1

SECOND CHOICE
Philadelphia
New York
Newark
Paterson
Boston
Jersey City
Washington

61
55
4
2
1
1

.THIRD CHOICE
Boston
Philadelrilia
Baltimore
Washington
Newark
Jersey City
Chicago
Atlanta
Pittsburgh
New York
puffalo

LES
0
4
3
3
2
2
1
2
•1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IT:

FIRST CHOICE
Kansas City
Denver
. Dallas
El Paso

ZECCHD CHOICE
Kansas City
Denver
Dallas
St.Louis
Ft.-orth
Paso

THIRD CHOICE
.Chicago
St.Louis Dallas
Denver
Kansas City
Houston
San Francisco-

—1.00

•
3

1

10
6

1

5
a
2
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.NEW YORK

FIRST CHOICE
New York
Buffalo
Albany
Boston

SECOND CHOICE
Albany Philadelphia
Boston
New York
. Buffalo
Chicago
Cleveland'
Syracuse
WaAhington
Rochester
Troy
Brooklyn
Schenectady
Utica
Pittsburgh

THIRD CHOICE
Boston
Philadelphia
Albany
IJew York
Rochester
Washington
Chicago
Pittsburgh
Utica
San Francisco.
Syracuse
.St.Louis
Atlanta
Buffalo
Kingston
Cleveland

379
13
10
1

63
57
33
29
9
6
5
3'
2
1
1
1
6

54
45
25
13
9
5
5
5
3
4
1
16
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NORTH CAROLINA

FIRST CHOICE
Richmond
Charlotte
Washington

42
18
2

SECOND CHOICE
Baltimore
Richmond
Charlotte
Washington
Philadelphia
ilau York
Columbia
Atlanta

21
14
8
7
4
3
1

THIRD CHOICE
Baltimore
Washington
Philadelphia
Charlotte
Now York
RichmondAtlanta

13
7
3
2
2

•
•-4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NORTH DAKOTA

FIRST CHOICE
Llinneapolis
St.Paul
Chicago

SECOND CHOICE
St.Paul
Minneapolis
Chicago

THIRD CHOICE
Chicago
Duluth
St.2aul
Minneapolis
Fargo

93
10
1

77
7

03
3
2
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

OHIO

FIRST CHOICE
Cincinnati
Cleveland
Columbus
Pittsburgh

155
106
32
29

SECOND CHOICE .
Cleveland
Cincinnati
Pittsburgh
Co1u2Lbus
Chicago
Louisville
Indianapolis
Hew Xork
Washington
St. Louis
Youngstown
Baltimore

79
53
46
41
34
3
1
1
1
1

THIRD CHOICE
Cincinnati
PittsUurgh
Chicago
uleveland
Columbus
New xork
Louisville
Indianapolis
Detroit
St. Louis
Baltimore
New Orleans
Philadelphia
Washington
Youngstown
Kansas City

54
40
35
0‘,

30
11
8
5
6
2
1
1
1
1
1

-*


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

OKLAHOMA

FIRST CHOICE
Kansas City
St. Louis
Dallas

181
50
17

SECOND CHuICE .
St. Louis
Kansas City
Dallas
Oklahoma City
7ichita
Chicago
• St- Louts
.

148
57
9
7
3
5

THIRD CHOICE
Chicago
Dallas
St. Louis
Oklahoma City
Kansas City
Ft. 7orth
Tulsa
New York
Houston
Wichita
Omaha
Des :,loines
Philadelphia
New Orleans
St. Joseph
Lluskogee

56
41
27
15
0
G
4
3
2
1
1
1
1
2
1

1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

QI1EGON

FIRST CHOICE
Portland
San, Francisco
Spokane

49
15
1

SECO:LTD CHOICE
San Francisco
Portland
Seattle
Spokane
Chicago
.
Minneapolis

40

2
1
1

THIRD CHOICE
Seattle
Spokane
San Francisco
Denver
Chicago
Los Aageldts

28
9
7
2
1
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PENNSYLVANIA

FIRST CHOICE
Philadelphia
Pittsburgh
New York
Baltimore
Cleveland
Boston
Buffalo
Washington

SECOND CHOICE
New York
Pittsburgh
Philadelphia
Baltimore
Cleveland
Washington
Boston
Buffalo
Harrisburg
Chicago
Lancaster

THIPID CHOICE
Philadelphia
Chicaqo
New York
Pittsburgh
Tashington
Boston
Baltimoro
Cleveland
Buffalo
Harrisburg
Uniontovli
Reading- •
Altoona
Lancaster

402
274
39
10
3

456
63
112
13
12
8
3
3
3
1'
1'

78
72
65
39
36
32
26
13
3
1
1
1
1
1

RHODE ISLAND

FTpCT CHOICE
Boston
11-w York

It

SECOND CHOICE
New York
Boston

7
4

THIRD CHOICE
Philadelphia

i
f


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

SOUTE CAROLINA

rinsT cHoicF .
Columbia
Richmond
73altimore
Irashington
Charlotte

26
11
1
1
1

SECOND CHOICE
Pichrond
Paltimorm

25
4

Charlotte
4.
Atlanta
Tachinp
.ton

THIRD CHOICE
Baltimore
Washincton
Charlotte
Richmond
Eavannah
Raleigh

4

1
1

16
8
4
3
2
1

nL
8

st.stz-e-A
,
sou-co:;. soa
at.:Jrazoci•
)1.1oz. IA(411
Irtrd 4-S
Teta°
sl:Tociroutrcp,
14ç,3 xnoTs
0219o
Li0I011) a'dIILL

ci
(t)
el Tqatit.i0;,1
,
uzo
.,r4I xnoTs
sT.To
o11 Igo
In-oc:
S
CIII0OHS

•
8
3a
.

xnoi:s
Id • vs

o2-e3-c Liz)
1
8T1°Jrciazu-:;1

saJ.coHo
-

iiffoT.3


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

fo


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TFYITQc17
F

FIRST CHOICE
Nashville
Cahttanooga
Cincinnati
Atlanta
Yemphis
St. Louis
Louisville
Richmond
7altimore

SECOND CHOICE
Cincinnati
Louivflle
Atlanta
Nashville
St. Louis
Chattano0F:a
Yemphis
Richmond
Knoxville

Tyrrpn ruoIcr
Cincinnati
Atlanta
Louisville
Ot. Louis
Nashville
Richmond
L7emphis
Daltimore
Chicago
New York
New Orleans
Chattancora

26
11
12
7
8
8
9

1

16
14
13
11
9
7
6
4
3

15
13
9
17
=
5
3
2

2
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TEXAS_

7IPST CHOICE
Pallas
Houston
Ft.. Worth
St. Louis
Kansas City
Waco
Galveston
San Antonio

201
08
62
13
11
2

1

SECOND CHOICE
St• Louis •
Houston
Ft. Worth
Kansas City
Galveston
Naw Orleans
San Antonio
Chicago
AuGtin
Wichita
Taco
Oklahoma

TRTIln CHOICE
St. Louis
Houston
Yew Orleans
Kansa$ City
Daras
Ft. 7orth
San Antonio
Taco
Austin
Calvnston
Chicago
Denver
El Paso
Okalhoxa
Atlanta
San Francisco

105
83
74
64
13
3
0
2
5
1
1
1
1

90
69
39
37
00
26
12
9
6
4
4
1
1
1
1
4

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

UTAH

FIRST CHOICE
Salt Lake
San Francisco

11
5

SECOND CHOICE
San Francisco
Denver

8
4

THIRD CHOICE
Denver
Omaha
San Francisco
Los Anceles

4
4
2
'1

•
'TER:IONT

FIRST CHOICE
3oston
New York .

20
17

SECOND .HOICE
New York
]301:ton
Albany

15
13
3

••


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

THIRD CHOICE
Philadelphia
AlbanY
Boston
Chicago
New York

5
4
2
1
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

VIRGINIA

FIPST CHOICE
Richmond
Baltimore
Washington
Yew York
Cincinnati

SECOND CHOTCF
Baltimore
Washington
Philadelphia
Richmond
New York
Cincinnati
Louisville

. THIRD CHOICE
Taaington
Baltimore
Richmond
New York
Philadelphia
Cincinnati
Atlanta

90
10
9
1-

43
33
8
8
5
1
1

29
23
9
16
8
2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WA.HINGTON

FIRST CHOICE
Seattle
Spokane
San Francisco
Portland

SECOHD CHOICE
Portland
Seattle
San Francsico
Spokane
Chicago
Minneapolis
St.Paul

THIRD CHOICE
San Francisco
Portland
Chicago
Seattle
Minneapolis
anokane
St.Paul
St.Louis
Omaha
Twin Cities

39
16
8
8

21
17
15
5
3
3

21
15
11
5

1
1
1
1

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WEST VIRGINIA

FIRST CHOICE
Pittsburgh
Cincinnati
Baltimore
Richnond
Yew York .

SECOND CHOICE
Daltimore.
Cincinnati
Twi;hingtor
Pittsburgh
Richmond
New York
Cleveland
'Wheeling
Philadelphia

THIRD CHOICE
Baltimore
Cincinnati
Washington
Pittsburgh
Richmond
.New York
Philadelphia
Coluecus
Chicago

40
25
20
13
1

32
19
18
11
14
7
1
1

24
18
13
9
7
5
1

T

IT

31.1o2 nzil
.
uosTpri
ptruieAoto
• oribnclna
003111 I7:
=
sTnorIe4S
Ins(r4S
oacowo
sTioduouum
FOIOHC MHZ

1. 02.
1

6
9I
81
g=;

8

men

sTnorqs
In'ecrfl-S
aircopjo
sTioLueuum
0Engl"c!!qTri
EDIGHO CilOC'ES

InscP4S
suodvouum
003
T=ITTI
oacoTtio
HOIOHO IMILE


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

)ff

HIROO SI/A

•

sploq.4g
°Iraq 4-UC
JCAU0a

a-Tau:0
oao:T-10
s=713H
CHIHLI

.
T7
T7

aoiolic

TT

oa:opto
aoAuea
auramo
EDIOHD CH00710

07Ye7 4Tug
,
ammo
aoAlloa
EDI0110

ORIIMRL


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BESERVE BANK ORGANIZATION COLLIITTEE.

i
47.
EIIBIT j
(Piled with Secretary's Report)

Index to Erhibits filed at various
Hearings.

ictIttftl't

Ir.72,..13.ITTGE3 AT 7:.'....31iLillf2.741
PI!..D or 37..111.11,- OF
.
1

,•1: 1.101.7
.
;.nycrican ?Aurtbor
tiolm

lottorn from Garysbur
%opor f:24

37arc,=,
several :Lotter
Ana 7orth jarolina,

Tairot

lettor from :1.

from lurabtr

O.

.
0o.„ Burca- 7„

opan1e

In Virginia
•

• 1:7O?tOfl

oi/.11.1bur:., :..• Ja
)

3e

onoiose5 Oo7 of 1.tter zont to sotathc!rn corrozpon.7.ont5
anl atatiotico,

Jtablor,

Otv..tafra.nt

J.

Genorra,

YIthstati3t1cs,

Stat otioa,

fitoltistics,

7.

-3altimro Mrcaln

3abrittod. by

Tot iclontificd,

L

0.

9.

nubtsitted by ';:r.l•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

G.

Gibbs

10.

11.

111',2-17„13k.iIi

C. ..2*
• ,
tolocrra.m

t

At!JJL7 .111

rd. of
:0
*

1'lc.11,411

. i* :21c,c,Dor,
'Loa t:tor, (1* • „
ctz10
•
...oryao
1
:JctoiI1et.
c.,;(1330zro, ':z\terviiio„

c.

e• -**toz=at

3111119 C. I. Jr.,

_loot04.,„ :;t
.., Lttai nsttor
,

2:01::o:o* ;11:C

:301itOn

71
'

!..tattC.11111

40

1...,r,31.371o.

iou.iic ;.erv„;ciz.C,., cr.1

6*
to210 ....CZf2, .0DO11214orta

Connecticut jr.rLo cza.
fliQ2n...'4'):Ivori2c New
:::olorixace to F.iotton:
,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3*

or

Conn.
Cittrtoz:
Co.
CitZ7 .2:11'01 3rz .:„ riartZ-33x1, COIt.4
Coztaxpe 1.4icat 2ez,;xrr.11
oil.
Cen,Lectimit
31
'. ..iyfdrk:Co.,Iittrtford, Conn.
Go71.1. 7.octieut Trutt $.r.al
Doocit Co., ilttrt.i`or3.*
2:trct
.:,,rzirt Co., atartforti„ Con.
th4ct Co.,arirttord*
24:11,13.1oct.;
i'kema.,aatford, Co.
nartfortl. C1e:73143.:o
CO2.
artrtfo * Cana.
a- -011ta
42
.Z1/74002ii«C
Onni
$ :tar 1,./S0 Atit$
OCLI tZi !;:tAl.f.7!t CO0#
Co:.
2-.1,.21I: anti ufit Co., 1111,rt:Corly Coral.
Ther.loc
o:r.L'.1., ."iint.faz„ or4ci, eccm..
tt'tiitod
ritztfortl,

6*
City

7.

3oston

2.
;iiri

7iti• A.

:errat*1

from

8.

Bi'lard O. :a. of' ,,von & Biller". Co., __Iorld.an, Co/L.
Pros.„ rats?.
'rvezoo Banks 4.1o-71(.3.or.co
,
Dooloy
Tonnozi,ckor., GyesIllor, Peoples :bte'l Bank, Claro:Ixit,

.
,
ilarcii.no..n Bros., .:..ostor:, axe Lotter Lnia

7•
ItiniTAns,' D., Boston, Liles. Aatistioal mattor
,

10.

LicLibben., i. . Boston, Yeast.1.,
lottors from:

U.

ocy.

Chat
-nor Of Cors:loroo

'.3oarki of
Attlaberc, .1u3s•
:3ocerd of Troia, Dolfact,
Botizti, of Trvedo, .:rattloboro, Vt.
Board o
rado nzILiorelznts LS raze ,ritclibur,
c.
3ot.r(1 of Tr:As:, .7'orwood, aloc.
'Jakoflold :,..5,1rentart; t2110..
altofield, i'eas.
310
1C210 t ..r.SU13.•

;Jam0rianC:OUS statistier.12 mattor

Lbreliants leiationcl

Zrov Llano°,

:-ozolutiotns

row f/k-;lariet. 2IOOtr.d. :Joveteer L2:3°010;10n, ro-,x)rt oi special
,
,
comittoo.

14*

North Borwic70. 17ationr1 Binti:„ north Borwica, sc.,requostinc 3ozton
3an3..
to be located ;i:*or

15.

Laction 30ari., 3o0;On

Kiliccontx-d list of oroillizttione w.iieh
the bearlik; on Locioml "ovorve 3ank."

Ulaehor, T.C. (M) latter


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LI-Le •# six:tactics

16.

icii1u bc re71o:KInt0ti at
17.

10.

i0.

:113I13:1 ;JUL:177i21) .ar2 ILP.EZMIG 121

-ELEM.
11DIT

ropliee WU; recoivoa
Clcvxin r.easo Committee, Ohico, aubmita
n;3oLz.ticrs 11.Linoin,
0000d to 1c.n
to a clrealtIr letter
Lt.Lcuiv; also
inlIcc.tir.c their °halo() rto betvon. Chiocce and
Llt. Louin
-Kmicle311 2 copy of circular letter it oat by
»Imo° 4,zpoc1tLtion,
7.:prexson,iriz, ico-::Terdidcrat
-

znd Epporoon ;Jtct,to
cottritru into oicAt

mabeits ritttlet:toc viva 1..eps (3) showinc cenert1
Porzan, trIrin 3,-.,
.
Cre tionc z-.n to eon-1-.10=1111
divIcion of country into dietrict3
Ilemor, etc.
":,eunde,1r. - Lki1x1t

3.

4.

no013 for ';:ho Iaun Ant() 3ftlikers

3tatenL21.t of 3.tiezo:an for (;:ritnblicainc a Pho1orz.2.
.
in LA. :arca


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1.

Burl:
5

:I

A.i,I.:50

"1"*""

griEra
t.

Derr;C.:'

N. 02.1
b;:7 :)elIVOrt

tee
-tor:
1.

'• J., aaditickx.1 dth contoztil.; LY,):ts.:teat
,
oilvor—loca orcz
Er=t0
to

JoInt tiCtx:.5::,,tc..-0 C;12,:.7.ii)or of Ccialoxo cald.
Vario.:11.3 lettcro ttal
Lialano

•

*

0*U-A ccx.... rrt *

Ifelo.
:10*

Joe following page


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

foluz..11.1.t;
,

to

ontion u:i:

urx*.r2,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

iIIBl2JULLIT2id)

aLiWaNG 111

;LAIL-1AT 1:0*
1
subnits statement frol::: to
'Telephone 1.zila ielograph corkvAys
ZoleplIone

orcor. r.
or the

Aatess

.
sutnits Ciath frona report of tie , kraDtrolier

avakwell, r.
nits rosoiution of Uo
Daalmrs s:;ooLLtion.

Durbridc3e,
industry.

sib:it

ct

:creco

elatia': to tie JotJ.Oininf;

czAL'iticinal t12t,Sacludini; ropcirt on
:,urbridLp, r.
'orocsicus metals TaiIlea in vari%Jus states.

r•

13*

3.

10.

i.

f)t-41,tmael1t on boiva:e of a `...,a3alttoo o
te :iesqlos, .r.
Live -toc.1.:. „no. :eat l'aclan.a.

16.

do :Zoocilos, Ir. - resolution by :LuIrioan, I:ational hive
,took nnoci,tion.

12.

do 2c3o1on, "r. vartinl lint of lamb ahd Gneop focdc,rs
In --1ora(10.

31.

fraca
atat000nt and lot
do :ieeqlost r.
roal.rdinc shipaont of t.radrotli.oto.

is,

Dixon,

deaiern

statwlont rwsardinc Ix) t surpr inciamtry.

otate::at rol;%tiare to Piro Insuro_noo businos,;

atatoilent rprtL.n

11.

O.

Jonciz ;:x• - lotor fron .,entators

Harrison,
°enter.

16*
.

LI3avor 7,.C.1

lyzran.amo

19.
•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•
j,

142C:41::.)1!,:t!S

NO.
otatemctat raL.ti7c to Iv:1rlo:1s or l'iriZ•T•

statcment antiremarkn,

Unlone„

.r,

,
zt: taLy2;tt (ne.?;ompani‘3d by
businossos.

j)

State:Lozlt rol..!.ti7e to col ri culx„ 3too1
-r.
otc., ladustries of clor,!do.
and Iron

'red
rcsoiutial or tIle

1100f

0.

J20.n1ciars4.

4
state-x.Ilt relative V* post.0 reolpts , 1d
;,onafroth,
of .,nior-16.o and no.urby statt:o.
industriwa
rec rd'Lar: fruit, produce, :::;Jotd
213we1l,
poultry inaustries.

:evuzen,r. renolntim of to
'A:ab and tAo Industrial JIub of Uiloyonno.
J.ats;:aLor Of

Jones, :rordoa, - resolution of k.;olorado
o.Lorice.

1O:103 platkr#10.11

,
1?or3er,

COp3-03 of

tt.rcu:nout

t 4)envor.

2ap or proiosed district.
,tries.
-of N.,. shavinc scolv of inca.

&mos, t'?oraon, - naps
- nap.

:4.111olle„
tt

Lrit

L3.

of nrc.,posed district
-be folder.)
filod in sepal

L5.

6

EL P.I.LO.

EXHIBITS SUBLIITTED AT 111.11IG IN 77, PASO.
:Ithibit :lc.
fra2 the
lotto
3isbos, ..riz.,
sevoral tanks
d
Club

vrren District Coiro, rcial

tions
Camber of Comore°, Lalver City, U. LI.- resolu

1

2

statment,

Cleaxinr house
":',1 Paco as a fi:lairiai ce:ator",
;U PV.i:0 as a jobbin_7 canter",
*1

'El Paso'r3 rnanufacturos &ul natural moon-cos",
El Paso Herald, Jan. 24, 1911 - editorial
"El Paso and tho Zantoc Industry",
as
letters from DoucLss, 1,rizerr. as follov
Graves,
i anes,
Dow;lv..8 Chanber of C :V..0reC
Dow;las,
i
r al0 Beak o
The First rational Bank

10

List of .:1::11esso3,

11

.
"Live ,.;toc•h:"

rowspaper

showinu resaurces of ..1 Paso

Pailroad and 1;rain statistics,
Rio Granr3.e Valley of New


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

9

o1co - stata lent,

12

13

1/1

2.

,-aratibito

aolct:on* G. P. - :Later

3o1.73on C


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

F4

tcbL

3.*
Craccc, i. L.

103a1;..

°Loh tmal

15

Chaabor

eic1, iTlW tU1

*

to ixivaix :or cortzlin. lxi.nist In

accozate in :a. Also.

16

17

13


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Alc 11

.11:G :CI

wv.)11.1,a
arm:111A Cilidzia rcY.zonli :711:7 a ro,r;iona± fmalaout of the
bytho
catea In Fort '-'orth, 1d
Amth
Illabbor of '‘)ommomo, Llm) rooVont o tha Port
Cloartv .r.OUBO ni tho :a7or of port •iorth.,
at4ulahoda

1.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C47
.31T
1

1:artsasitr (.;Ioaritic AOU3O Ansociatial:
,
to IV.C7eASTI Saitj, to 00ritikt 3i.g.741:1 tbecickatc, fran
z
:
lranslrod. iii oxpressiz thoir deslre that
fiftema
ty
..zdk.a.c.a. ocrve ..:,,frak be loczltoc
uted atlfcUOi
distrib
A

ooloradD
-

*

•

4 14 *

•
•

1.

•• h

•
• •• , ••••••••

e0
itianSS. **o.,,•••••••,
l
.3.1
.A.scouri
Nobras, foo,nootakeir•ewe 10
• • ;;..
• •
aZ1CC, **• • • is *
.
02thaCtr. ••••••, .e4A.4.

3'37

_ssociations ';oppol:az
=knac saiii to coatctin arriroximc,tely aao thorci'jne p,
selection
aiLi cards from kzi.1:u in l'ilmsas fo,vorik: the
aeorve
of Lants Olty for the luoation oi7 a ,.'ederal
B=1:.

e,•

3.

ana lettera„ - one file,
::chneiaor,
,
,
.0(;lutica, and lettrz refutinc atteotit of J. t.;..

4.

YAN;timeiv introduood by Itatm roul '2rant Canonic; 1-

5.

(thiUts are btaly, cad no foLder

boon rz,134,0)


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1111'.113:1*
4
1ATQW

a)rinizc

.:4301t
icao;:ican (

)2.7.);70

st

Detnitsf Citsdla stval fJoati Cbt.ixt,*

eatticcra

.Liztton r1•;.11:1c270
.
Cialceco* attr.

otica„

at,;:tasmt,*

llob:y.IS::41 :At I.;rc#
a
•
Dolz:;, o* ; L• i„ocrotc
Colurosti*—Iiriof. relt.tivc 1;c1 tilt) lowtiou of a ..,oco,r;o
in :";c3brEtaizz,

'
...",a4 a h.

• G• Caciilor ntoc:qrcrao
z:.4.1,11t.1.oval lists*
1

4
•

1:11121.C.:4

Poet-Or:icc, Onsillay
urd cn -vic

6,

statement co: roceivtat

ott.toty;Lat

ic

tc:1)10
Co.tv;':Iolcscao io,
ptirreentaco o(listributLc21. 1 7cic-,tr, tActoo*

iricjat

ItteoI

5.

';obrelfi.z 1let1o:112. 3m a

:*p
,
•

::t

CrAZ\LC- 40
•

9•

"Mrit;.:

ynteLL,
-6 ,

C.

•
9

01
.

2;ACro

tol:rtv, rolatilx: to :V.3,11,--.1c
10•

7::1113171,5 *

Omaha C1eari4; .iouce zsociaticin
Ono larco preiza;:30 containc eLr.Is ttna lottom =id to
ho dintriteUxt as folltyav:


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Craa
Irebra

M •

*e$eteaq 0..053

Ryon •*.

Ik•fr• • •a • 0
• •

76

rzft
.'.41'Ut);:.11,22C a•
,
•
•

•• •••••
• •

.,
C
• • * s• • • 3,
• • •
::;:•011:120:::Ota• •
?.
• 40
IO:Z120 •
• • •• • • • •
• * • •
•
• •4
C0101W.100 *• •

J

•e•
•
•
Uta.)21* ***** • • • a •

6

al6. c
1,
47"4.1.
from
1:0 bra

•••*****••••

70

4,
a.wvra
A.
a It 000••••4•00a•*

•a
;IC • a •
•
0tal
V;1,
1
Iditaa0 *

a

-% • a a at

17
16t1

ZO l4'•0 •00.5•

• • • •
a• • •
0910MCIC • •*
• •

fltz=1.1.•••••••• *****•

oc,t).-TalairG

• 1.C‘
•

••••.•••••••••.••

11.

3UBL.T.7.TiO AT F&...RIUG IU
JAI

J

! YORK
,- .BIT NO. •
I. .111
1.

line of nine districts,
Mr:anion, Henry H.„ - out
Bradstreet Co., 7;ow
1914 books,

nrk, -

1013 and
list of names reported for

l outline of districts,
Carpenter, Henry S., - genera
that bank,
n, How Haven, Conn., stating
Clearing House '.ssoctiatia
of the
ferred to become members
ere efo that ,lssoolation pre
Federal 7teserve of Ilem York,
t icraton
Scranton, 2a., request ta
Olearin:f House fi.soociation,
k district,
be included in the :;(17 Yor
n statins'
yracuse, H. Y., - resolutio
Clearing House ..ssociation,
nty 7tould
ks located at 1:ew ?ork
that tile Federal 'Ioserve lan
erests of 'Jew York .;tate,
.3
best serve the ban11.12v int
s,
aochester, H. Y., - statistic
Clearing Pouse ieooiatiou,
: that business of Vt.
Rutland, Vt., - letter statiw
Clement,
ost entirely with
:
f toe Green 17 ountains is done alm
west _
:low York,

Conant,

'

2.

3.

4.

J•

G.

7.

8.

9.

,
- General outline of districts

enclosed
tion of 3outh .A)rwaik, Conn.,
Imnecticut Bankers ZLssocia
115 banks and
ar letters sent to
74 renlios received t:; circul
of C-innectiont,
7ruct companies in 5tate

10.

k, H. Y., - 3rief,

11.

do Lima,

Lan Co.,

A., of the Battery

arkJ:

Hational

districts,
.ont as to location of
New York,- staten

- letter,
First :Tational Bank, Canton, H. Y.,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

12.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

vaay.-

HI313,-

2.
.TUIIBIT :o.

Plannagan, .

7.'outclair,

- aiL1tlanai

of the jhase -ational
Hepburn,
from f)rmor jongrermman, ;. J. Hill,

tatement.

14.

., encloses letter
15.
16.

Rine, Francis, - location of ::esor7c,

3u3L:7estiono
Zones, G. Manorth, J. . ..";ity,
lishrent of 7edera1 oserve districts,

.
to :13tab17.

a'aelm, Loeb & Co., - sua'motions at; to districts,

16.

La :onte :Jeorx! :ason, Connissionor of 3atkinE; and Insurance
for :ew Jersey forwards ma2 and memorandum relative to districts,

19.

:7arshal1, E.

i
,enoral outliao of districts,

requests that 2ayre, ?a., be in:':(!rchants 1:*ationa1 3ank,
cluded in the new York district,

20.

21.

ITowburyrort :lorning Herald, - editorial,

auterbridg-e, .-1. 7., - statements,
7

Pace, 24Tard D.,

23.

coneral outline of districts,

at lanai Bank, Connecticut, ilrefers to be located
in "1:ew York district,
Rothschild, V. zddney, - encloses newspaper clipping reard
remarks at hoarinj,

26.

MARIN& IX WASHINGTON
!,LCrIBITSFILD ON 1331ULP QF

EXHIBIT NO.
i'oo1ution

Association of jrorlit
Chamber of Cameros, j'hiladolphLi.,

loarirr. 1touso,

r000llztions,

roaolutIona,

f
hi1ado171h1a - ro5o1utionm,

,Lorobanto' and :anufaoturers' • s000intions- 7hiladelphla
rosolutions,
.1i.otlZrat3 from banks
:3ankors ..%..s000latiori, Group
2.1o;jraokont
throw;livAt i - ormsylvania, adare33od to ::,anuol
ObaIrman,
roturna from
AssoolatiGn, Group4,
,
:, enrisrpranio.
tliroll,7hout :onnaylvania, 3ttbrn1tted. by the OashIor
7
:1111amsport, iionnaylof the '7ost
vania,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2.

3.

4.

- resolutions,

Ilr000ro' and II71;:olvtorzt 1:y.ohninge,

1.

J.

6.

7.

8.

152AaING IR WASHINGTON
'ii; or

xiIrfl3

av
allIBIT No.

Chamber oC

ittaburrh,

yatilnaa
Cornittoev - ittralyarch,
Cloring
2.eserve Distrits, A.th ntatisties,
iAcivou ropst givinc atitistios,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1.

stater:onto

i?oderal

3.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

=mum .AT

IN

;,?I„)! •

i1i7•JA,

ez..orts from . :lortland t.‘rd .iur;ot
,

jolt. :34., live otoak statiatics

zhowirvs taiI1n
itivr in ?Ileigic
7ooat.( Jhp v;loa in !aearato folder)
JO:=00:a,
ito3plution adoptod
cial Club

Xorro

Outlino or addrops in rerd to
in :.'ornd.

Lo7o1a2id, 0.J., ;Jt-,tiGticra

:Jamor-

crional

TD1c,3

050012f,
aoroa :t) in tho .7iorthwoct "it:
,
ill,strated :ap.
in soto ft)/ or)

(
3)

(4)

(5)

(6)

(7)

:.:5,11610 A.L., lank 3t-t '.1:11t2 of Av. rortLwe3t.
,

(n)

3ar7mt, S.G., Capitalizetioa etc. of Ant* kuaz
Lito riAntinz; to bmIkim (11:Innta)
:anj'aleta la oaparate folde'. '

(9)

Joblanc conditions iTitiao Paol.zio Korthwost.

/7e
A

:10)

RILL' 1,11t1
LU

)
CU P ja:d.1
ar011101a)


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1*

i.7amt

L.:.alorlecal Tobacco

„.
Qerriactor.,
.
.
,
'.'„.,
.:roartvii.. .e„ ,,ovt-ti .c4J2•01.1,1:01„ resolutions*

ekiainbor

S.

,
..
,
CleatInc ilo-c,.!zo '..z:..,0 31,i..:ti.ort„ ;144,-,., ZiTillet ..•-4.C,4 I - rtraOkations,
,

4*

or lottra,
„
.
.
Clowittoo on c,01:rro .21.11 - to 1.1,.
,Ilo iist or m.',LILI of :Lrnn ind laalvlat.10 inclorr
':A.0111.xnd,
Jac /lc= poot213,

54.

U.

lottor

orii2o1.3x,loo

6*
7.

of pm;pac on ,io:riral..knd /odoral .sorvo

104

loolgezlntor - lotted' relat1.7o tu traia sorvico,

;(:)6ton, Y

i1:,

;Ion,

tytAcnot,

1.

iqoalonki,

o

.riiieo of tm3ir. ovned and aL-cmtod

.

11.

dif.,;rarit

st,too,

.01y400 ia4uutrj -1161tt rol..:tIQA to to

prOpOsul aiatriet for

15.

prop-0:5.3d district r4..,r

1G.

a

r.
,
.Z1113ITO 01521211 ,22
11

E.'111.11ING ITT

r" Ypur
,
,
1.121T

1. 0.* —
frar, City 1;c.,t2crsirli.
ia1io 3:, Docat;u.-,

1*

,Zror: 47.
:..choot,*
J.,
iawi

Layburn,

i.1t1.z
..zoo tarabor of lotto's from
.
ica dictrict•

2*

crabmito lttroo nurfJor of ictt.)rc from

colista..noolzo lot of lottorr: from be21;-..s irz variol.u) eitico in
ainsava

3., cull:Its 1:arca mitlber of 1ot (.3
Cloarinc :Icrano•

, frail:Litz r0:361111;

021

fr,nz?

fron :•74•4.2.u,ovil 10
•

sultaitt lottor:.; fro., .t. Vernon v.nd.

t.:;•

6.
7*

ro
Lzi.A.ino City

to 31:0;.•:*

veelittiveour, lotto=

rci

t
••:, ••

'
'

9
•

7

idscolicazooac 2c..ttorz


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

8*

10*

—2.

M
011

0,4•40

Prcn ill: I1rII
U.

LIseeilvaloo'az lettern.

neellczoous letter , ro
euItraitted Try .3u3Ilion
different ctr...too

:1.10C01it:1X)=1:3 /0tt01'3

luti cz.c,z.a. ctat.,ic, etc
t.OU3, fivin
:one'LiC O

e aim) zzador "1.2.1:ancaen

•

..:leeellaneous lotto3.

Prom

32.

14.

S.

;Iscellranoeuc, lottorr,*

15.
16.

217or, .

, four 1r_ -c with cttne:lickl. ctct c
,
tc rz„ oT ecleh.
rnatIan c oneerninc the to
17.

D. R. Francis,
Lap submitted by
Southern
, relative to
mitted by H. D. Sexton
sub
Nap and statement
inois.
Ill
tely.)
(Maps filed separa


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

18.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3111bit Vo•
(1)

statcy. nnt of 01/2t0711 b1.13illa33
:
,
:!frnmalsoo*

.lor,)ora(
2)
.lannn:or
.,ilaon,
1-AtQrs and ta.yryczo -11711.1g r -sons
tion, 3u1mit3 scvor4
r,d Int.*Jr-mountain
1t L3zo City ,
roroons vi
district shauld bo includotl h1 t,ho zon..;of ;:i4tiona1
11111: to bo or;tcibliblherl at „:cm.

=
jncramonto Olmrinc io- o Association, statment
rolativo to Zaartnonto,

Olearinc noxise
Era; c tsoo•
a7 rinc

n&

riosolutiOns

rad ncraorandur..1 tlubmittod by
:I:7.1x as folios Oka sere:rot° fib)
1.ti In iiolion to ..laric,..rus
riods o
1)12.= of
."?.roducts.
.....ap of tho Wor/d showirts. 6tcanzhip
7,1orts :71th th:.:ir
botwoon g‘ian 2ranolsoo nut
1913••
4.
rts of i1 13'...olative to tr.,::. ..ovatIon -Ath statant
.faoturoil .'roducts
Valuo of
Gonnarlson of Pnoific jonct
Vr.1111.6 of ...-nnufact'Grod '27.0th:tots
:,›orazD.Ition
orts ond Iraports

.1.1a,7)111.ct

risourz

ro•..ort of f.',,f;:31

2ocIbiito

of atgifornia

Ctameras

(3)

(4A)

(5)

(6)
(7)

(0)
(Y)
(
(11)
(IL )
(13

(14)

(J5)

(91)

'lel

ATo Iv:147

JO

o 4a T.tpl,
,

rm


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.•

•

ncom/tom14:

'
• 4t` qrr4:00 DV:TVA": ti-01.011 &CZ
whaol.:\ "' tz;aoros- t1Ot Otn, 4000 °MAE
-,

a

TtOOatTul WCTuTglatunT41 tu oattat4
.
•
,

4
.0,4 1
00t'.11)

117

7174-7

ITS wi2.1

- ••-

.

.

.

,
, _

(*.12,7roz:
,
•:::172007 •att At PotTZ 1-10 T:Tkia act.I. •ir;cttar-o" ,TI

.
•vtimi ztr4 17.1722°a 17: or4-1to . 2ttr.:r..Tz

PcP1,47-Tlnc

si.:ortrz:

4)3
,
T''',740141

virr:


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4s"
,
,
•qcovqwo,s,Yt Jo Renutt7nT 2uTvuTj uo oTql:14 trioTT,I4.1.

,N
anao,

01ZO14";Tooiltr; water 2tIa-nt: =or

nr:10 im.'.41:0

avonlyrouo'

.
:
*t_tr4uar 11104Tr:c7 0
soTir7r4n •r, •• *7: f;;T:

fr;.I711
tzTtit.17;

4.‘444:Yeati

:3T.T rost17:30.,7

07,
•oor, 7
(..1,4)Tozr. oluartapo TIT 0:1'.1.21
vr..11 vifiaj ttx4i,kot
a)j
Of
44 IloTT; coTu4 Tz'oT4eTvivi
snoxanvu vtlla suoauTioz *0

:
,
*JO-OXe *E •r1

4
11,17. ."

VC

Ori

ao- 2u110::::::114; 4mulavl; 0,,77 wor
oT44-

,
Ai J01.401

.13: At Do444-rt::
*..z:ityr49.;fr
71 ;
o7 tvnl), 1:4

JO

•-rrr -7
C.;14

1:t.T

mr-e.

ntrrz:v11:

Nr-,•••.t
"l I
ir

.3

v•
•

:13
1
X11,
1

Y5.?

r
:L.. •Lia

cbchtbit No«

or of Com 1111......1
zttorxri.t.

3
3' 1-.:„• -d.
.

;
,
oorajr.rati-oro 11 1

3

• tnt

.:>.i.%r;

01cifarUano

4

CIentinz

ont
01,al..s.r1nc :Lowe :_r?so3tati071,'
.1 .e.):;orve dizt-lot 1."cir
LlatOn.
--

::;artivara 3:.

titc.)
,

5

7.t\loent

;itry:

it

orthr.ittril„fnvorlr4;

•3nzrzise.T.:L., Loo- tion


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

'

t

otinc

lotto

9

.

.'

_
,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

W. G. MCADOO,SECRETARY OF THE TREASURY
DAVID F. HOUSTON,SECRETARY OF AGRICULTURE
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

December 26, 1913.

Sir:
Pursuant to Section 2 of the United States Federal Reserve Act which
became a law on December 23, 1913, the Reserve Bank Organization Committee has adopted the following as regulation No. 1:
"That every national bank shall submit to its board of directors
alternative resolutions accepting or rejecting the provisions of
the Federal Reserve Act, and shall file wi'Lh this committee, within the sixty days prescribed by said Act, the resolution adopted by
said board as the method of signifying the intention of said bank
in the premises. All other banks eligible to membership may use
substantially similar forms of resolution of acceptance and intention to subscribe to the capital stock of Federal Reserve Banks to
be organized."


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfully,

W. G. McADOO,SECRETARY OF THE TREASURY
DAVID F. HOUSTON,SECRETARY OF AGRICULTURE
JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

M. C. ELLIOTT, SECRETARY TO COMMITTEE

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

REGULATION NO. 2.

The Federal Reserve Act provides for membership of banks operating
under State charters as well as membership of national banks. No new
charter. is contemplated in either case. Eligible banks become members
by becoming stockholders in Federal Reserve Banks when their' applications have been properly approved and stock has been allotted to them.
Such subscription to the capital stock of the Federal Reserve Bank appears to be a. matter within the province of the Board of Directors of
the subscribing bank. The Organization- Ccmmittee therefore deems it unnecessary tc require as a condition precedent to membership that the
stockholders should take any formal action.
Inasmuch, however, as the stockholders of a bank have the legal
right, by necessary vote, to force a solvent bank to liquidate, and if
dissatisfied with the action of the Board in becoming members might exercise this prereeative, banks desiring lo take the precautionary measure of canvassing the sentiment of the stockholders may, by resolution
of their boards, submit the question to the stockholders either at the
next regular meeting or at a specially clled.mecting. This course is,
however, not insisted upon by the Organization Committee.
Those national tanks passing resolutions of nonacceptance on or before February 22, 1914, should, as soon thereafter as.ccnvenient, and
beIcre the expiration of the twelve months prescribed in the Federal Reserve Act, submit their action to the stockhclders for confirmation,
since nonacceptance of the provision of the Federal Reserve Act will
ultimately involve the liquidation of such national bank.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REGULATIONS AND BY-LAWS, RESERVE BANK ORGANIZATION COMMITTEE, prescribing condition
s under
which State Banks and Trust Companies may subscribe to the stock and become members of
Federal
Reserve Banks.
Regulation No. 3.

WASHINGTON, D. C., February 20, 1914.

Section 9 of the Federal Reserve Act reads in part, as follows:
"Any- bank incorporated by special law of any State, or organized under the general laws of any
State of the United States, may make application to the reserve bank organization committee, pending
organization, and thereafter to the Federal Reserve Board for the right to subscribe to the stock of
the
Federal Reserve bank organized or to be organized within the Federal Reserve district where the applicant
is located. The organization committee or the Federal Reserve Board, under such rules and regulations
as it may prescribe, subject to the provisions of this section, may permit the applying bank to
a stockholder in the Federal Reserve bank of the district in which the applying bank is located. become
Whenever the organization committee or the Federal Reserve Board shall permit the applying bank to become
a stockholder in the Federal Reserve Bank of the district, stock shall be issued and paid for under
the
rules and regulations in this Act provided for national banks which become stockholders in
Federal
Reserve banks."
Pursuant to the provisions of this section, the Reserve Bank Organization Committee has prescribe
d
the following regulations and by-laws specifying the conditions under which State banks
and trust
companies may become members of Federal Reserve banks.
First.—Any State bank or trust company eligible to membership in Federal Reserve bank
under
the Federal Reserve Act and desiring to subscribe to the capital stock ofathe Federal
Reserve bank to
be organized in the district which will inlcude the place of business of such State bank or
trust company
shall submit to its board of directors for consideration a resolution in the following form,
to wit:
Whereas, Under section 2 of the act of Congress known as the Federal Reserve Act, approved
on the
23d day. of December, 1913, it is provided that: 'Under regulations to be prescribed by the
Committee every national banking association in the United States is hereby required and Organization
every eligible
bank in the United States and every trust company within the District of Columbia is hereby
authorized
to signify- in writing within sixty days after the passage of this act, its acceptance
of the terms and provisions thereof:" and
Whereas, This bank is believed by the Board of Directors to be eligible
the right to subscribe to the capital stock of the Federal Reserve Bank to to membership and to have
be organized; and
Whereas, It is the intention of this Board to apply under the provision
for its proper proportion of stock of the Federal Reserve Bank to be organizes of the Federal Reserve Act
this bank will be located when the geographical limits to be served by such d within the district in which
Federal Reserve Bank have
been fixed and announced by the Organization Committee;
Now, therefore, be it resolved, That the president of this bank be, and he hereby is
empowered and directed to notify the Reserve Bank Organization Committee that this bankauthorized,
will apply
for an allotment of stock of the Federal Reserve Bank aforesaid, and if granted, will
such Federal Reserve Bank subject to the provisions of the Federal Reserve Act. become a member of
When such resolution has been passed by the board of directors, the president or executive
officer
of such State bank or trust company shall transmit a duly certified copy of such resolutio
n to the Reserve
Bank Organization Committee at Washington.
Second.—When the location of the several Federal Reserve banks provided for in the Federal
Reserve
Act have been established and the districts to be served by such Federal Reserve banks
have been defined,
the committee will cause to be forwarded to such State banks or trust companies, at
the same time that
applications are forwarded to national banks under the provisions of the Federal Reserve
Act, a form
of application for an amount of capital stock in such Federal Reserve bank equal
to 6 per cent of the
unimpaired capital stock and surplus of such State bank or trust company. This applicati
on must be
accompanied by a statement showing the assets and liabilities of such State bank or
trust company
listed on forms approved by the Committee. These forms will be furnished by the
Committee upon
request. The Board of Directors or a committee composed of not less than five members
of such Board


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
shall certify that in their opinion the assets listed in the manner prescribed by the Committee represent
actual existing values and that in the opinion of said Board none of such assets are carried at an
excessive valuation on the books of said bank.
State banks and trust companies shall also file with their applications for membership copies of
their charters, with amendments, and a digest thereof showing the powers (granted by such charters
and amendments) classified to indicate:
a. Those powers which such banks and trust companies have exercised and desire to continue to
exercise.
b. Those powers which, while granted, have not been exercised and which such banks and trust
companies will not desire nor attempt to exercise as members of the Federal Reserve System.
Third.—In lieu of a special examination of the condition of such bank by a national bank examiner or examiner appointed by the Committee or the Federal Reserve Board,the Committee may accept
a certificate from a duly accredited State examiner or bank commissioner to the effect that the statement filed by the board of directors as aforesaid represents the true condition of such State bank or trust
company and that the capital stock of such bank is in the opinion of such examiner or commissioner
unimpaired, the surplus represents actual existing values and the liabilities are as shown by such statement. . The Committee, however, will reserve the right in any case to require a special examination by
a national bank examiner or an examiner selected by the Committee or by the Federal Reserve Board
as a condltion precedent to membership in any Federal Reserve bank.
Fourth.—Only those banks which have an unimpaired capital sufficient to entitle them to become
national banking associations under the provisions of the National Bank Act shall be considered as
eligible to membership in a Federal Reserve bank.
In accordance with section 5138, U. S. Revised Statutes, as amended by the act of March 14,
1900, State banks or trust companies in order to be eligible to membership must have unimpaired capital
stock, as follows:
In cities or towns of less than 3,000 inhabitants, $25,000.
In cities or towns of more than 3,000 inhabitants but less than 6,000 inhabitants, $50,000.
In cities of more than 6,000 inhabitants but less than 50,000 inhabitants, $100,000.
In cities of more than 50,000 inhabitants, $200,000.
Fifth.—State banks becoming members as such under the provisions of section 9 of the Federal
Reserve Act and retaining their State charters shall be subject to the provisions of section 9 and to such
other provisions of the Federal Reserve Act as are applicable thereto.
Sixth.—State banks desiring to become members under section 8 of the Federal Reserve Act by
being first converted into national banks in accordance with the provisions of this section, shall become
members as national banks. Where such conversion into national banks is completed before the expiration of 60 days from the passage of the Federal Reserve Act, such banks should file with the Organization Committee the form of resolution prescribed by the Committee to signify their acceptance of
the terms and provisions of the Federal Reserve Act before February 23, 1914. Where such conversion
is not completed before the expiration of the 60 days aforesaid, the board of directors of such banks
shall, in executing the articles of association and organization certificate as required by section 8, at the
same time adopt the resolution prescribed by the Organization Committee as aforesaid, and such resolution shall accompany the organization certificate filed with the Comptroller of the Currency.
Seventh.—Where such conversion is completed after the organization of the Federal Reserve banks,
such organization certificate shall be accompanied by an application to the Federal Reserve Board or to
the Organization Committee for an amount of stock equal to 6 per cent of the unimpaired capital and
surplus of such bank.
Eighth.—Whenever a trust company shall become converted into a national bank under the provisions of section 8 of the Federal Reserve Act and shall desire to continue to act as trustee, executor, administrator or registrar of stocks and bonds, such organization certificate shall, when filed with the Comptroller of the Currency, be accompanied by an application to the Federal Reserve Board for permission
to engage in such business, and no certificate for the conversion of such trust company into a national
bank shall be approved by the Comptroller of the Currency until the Federal Reserve Board has granted
this permission under rules and regulations prescribed by it.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
Ninth.—Whenever a State bank or trust company with established branches shall make application
for conversion into a national bank and shall desire to retain such branches, such State bank or trust
company shall comply with section 5155, U. S. Revised Statutes, which reads as follows:
"It shall be lawful for any bank or banking association organized under State laws, and having
branches, the capital being joint and assigned to and used by the mother-bank and branclies in definite
proportions, to become a national banking association in conformity with existing laws, and to retain
and keep in operation its branches, or such one or more of them as it may elect to retain; the amount of
the circulation redeemable at the mother-bank, and each branch, to be regulated by the amount of
capital assigned to and used by each."
Tenth.—State banks or trust companies applying for membership in the Federal Reserve System
under section 8 of the Federal Reserve Act by conversion into national banking associations, or applying
for membership under section 9 as State banks will, if otherwise found to be eligible, be given a reasonable
time within which to adjust the loans and investments of such banks to conform to the requirements of
the Federal Reserve Act and other laws of the United States applicable thereto. Any bank applying
for membership and having loans to any one person, firm,or corporation in excess of the limit allowed by
the Federal Reserve Act or other loans and investments prohibited by such act shall, before being admitted
to membership, give satisfactory assurance to the Committee or to the Federal Reserve Board that such
loans and investments will be eliminated or made to conform to the provisions of the Federal Reserve
Act and other applicable laws not later than January 1, 1915.
The condition of the applying bank or trust company and the general nature of its business will be
considered by the Committee in each case in determining whether such banks shall be admitted to
membership.
Eleventh.—The Committee or the Federal Reserve Board will from time to time adopt and publish
such additional regulations and by-laws as may be deemed necessary and advisable.
W. G. McADoo, Chairman,
D. F. HOUSTON,
J. S. WILLIAMS,
Reserve Bank Organization Committee.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FEDERAL RESERVE ACT DUTIES AND POWERS OF THE ORGANIZATION COMMITTEE.

RESERVE BANK ORGANIZATION COMMITTEE.
Circular No. 1.

WASHINGTON, D. C., February 14,.1914.
In view of the large number of inquiries received from both national and State banks as to
the proper interpretation of various sections of the Federal Reserve Act, it is deemed advisable
to explain, as briefly as the circumstances will permit, the operation of this Act in so far as it relates
to the duties and powers of the Organization Committee and the method of procedure adopted
by the Committee. For convenience, these duties are considered in their chronological order.
First. Section 2 of the Federal Reserve Act provides as follows:
"Under regulations to be prescribed by the Organization Committee, every national banking
association in the United States is hereby required, and every eligible bank in the United States
and every trust company within the District of Columbia, is hereby authorized to signify in writing,
within sixty days after the passage of this Act,its acceptance of the terms and provisions hereof."
It will be observed that under the provisions of this section all national banks are required, and
all other eligible banks are permitted, to signify their acceptance of the provisions of this Act within
sixty days from its passage. Banks should not confuse this notice to the Committee with the
formal application for stock to be filed later.
To facilitate compliance with this provision of the Act, the Committee has forwarded to all
national banks a prescribed form of resolution to be adopted by the Boards of Directors of such
banks, and upon request from State banks is forwarding a prescribed form of resolution for use
by such banks. When certified copies of such resolutions have been received and filed no other
action by applying banks is necessary until the locations of the several Federal Reserve banks
have been established by the Committee, and the districts to be served by such banks have been
defined.
The Committee is now engaged in holding hearings in various parts of the United States in order
have before it as much information as possible to enable it to properly determine the locations
.to
of such banks and the districts to be served.
Section 2 further provides as follows:
"When the Organization Committee shall have designated the cities in which Federal Reserve
banks are to be organized and fixed the geographical limits of the Federal Reserve districts, every
national banking association within that district shall be required within thirty days after notice
from the Organization Committee to subscribe to the capital stock of such Federal Reserve bank
in a sum equal to six per centum of the paid-up capital stock and surplus of such bank, one-sixth
of the subscription to be payable on call of the Organization Committee or of the Federal
Reserve Board, one-sixth within three months, and one-sixth within six months thereafter, and the
remainder of the subscription, or any part thereof, shall be subject to call when deemed necessary
by the Federal Rpserve Board, said payments to be in gold or gold certificates."
This section should be read in connection with section 4 of the Federal Reserve Act, which
reads as follows:
•
"When the Organization Committee shall have established Federal Reserve districts as provided
in section 2 of this Act a certificate shall be filed with the Comptroller of the Currency showing the
geographical limits of such districts and the Federal Reserve city designated in each of such districts. The Comptroller of the Currency shall thereupon cause to be forwarded to each national
bank located in each district, and to such other banks declared to be eligible by the Organization
Committee which may apply therefor, an application blank in form to be approved by the Organization Committee, which blank shall contain a resolution to be adopted by. the Board of Directors
of each bank executing such application, authorizing a subscription to the capital stock of the
Federal Reserve bank organizing in that district in accordance with the provisions of this Act."


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

It will be observed from the foregoing that the Comptroller of the Currency will cause to be
forwarded to those banks which have signified their intention to become members of Federal Reserve
banks, a form of application to be executed by such banks after the districts have been laid out and
the location of the Federal Reserve banks definitely established by the Organization Committee.
These forms will be forwarded in due course and in accordance with the further provisions of the
Act, when the minimum amount of stock for any Federal Reserve bank has been subscribed 'the
Committee will designate five banks to execute the necessary organization certificate. Subscriptions
to stock will therefore not be called by the Committee until after these preliminary steps have been
taken.
NATIONAL BANKS AS MEMBERS.

Attention is called to the fact that all national banks are required to signify, within sixty days
from the passage of the Federal Reserve Act, whether or not they accept the provisions of the Act
and intend to subscribe to the stock of the Federal Reserve banks when organized.
That within thirty days after the Organization Committee has announced the designation
of cities in whicl• Federal Reserve banks are to be organized, fixed the geographical limits to be
served, and notified such national banks, all such national banks are required to subscribe to
the capital stock of such Federal Reserve banks. These provisions are clearly set forth in the
Federal Reserve Act, and the Committee will expect and require a strict compliance therewith.
A number of banks appear to be under the misapprehension that they are allowed twelve
months' time in which to accept the provisions of the Federal Reserve Act. This limitation, which
is manifestly intended to cause automatically a forfeiture of the charters of those banks failing to
comply with the provisions of the Act, must not be construed as extending the time specifically
set out in the Act within which such banks must take the action above outlined.
STATE BANKS AS MEMBERS.

The provisions relating to membership by State banks are, under the terms of the Act, entirely
optional. State banks are not required to signify within any given time their intention to become
members, but are permitted to do so if they desire to become members as soon as Federal Reserve
banks are originally organized.
Two methods are prescribed by the Federal Reserve Act by which such banks may become
members of the Federal Reserve system. First, under section 8, by conversion of State banks
into national banks, in which case the laws applicable to national banks become immediately •
operative as soon as such conversion is completed. Second, under section 9 State banks may
become members, as State banks, retaining their State charters, in which case such banks are subject, specifically, to the provisions of the Federal Reserve Act contained in section 9, and to such
other provisions of the Act as are clearly applicable. Banks becoming members as State banks,
therefore, may exercise those powers conferred by their State charters which are not in conflict
with the specific provisions of the Federal Reserve Act.
State banks and trust companies signifying their intention to become members of the Federal
Reserve System before the organization of the Federal Reserve banks will be permitted to participate in the selection of directors of said Reserve Banks, as prescribed by the Federal Reserve Act.
The Committee has prescribed the regulations under which State banks and trust companies
may become members, and a copy of such regulations, with the forms approved for use by such
banks, will be furnished upon request of any State bank desiring to apply for membership in a
Federal Reserve bank.
M. C. ELLIOTT,
Secretary, Reserve Bank Organization Committee.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RESERVE BANK ORGANIZATION COMMITTEE.
Washington, D. C., May 6, 1914.

-

SIR: In answer to a number of inquiries received and in order to expedite the organization of the
several Federal reserve banks, your attention is called to the steps still to be taken before such banks
can be fully organized, and particularly to the method of election of Class "A" and Class "B" directors
by the member banks.
EXECUTION OF ORGANIZATION CERTIFICATE.
Section 4, paragraph 2, reads as follows:
"When the minimum amount of capital stock prescribed by this Act for the organization of any
Federal reserve bank shall have been subscribed and allotted, the Organization Committee shall designate any five banks of those whose applications have been received, to execute a certificate of organization, and thereupon the banks so designated shall, under their seals, make an organization certificate
which shall specifically state," etc.
In accordance with this provision the Committee will, not later than May 9th, designate five banks
in each district to execute the organization certificate provided for. To facilitate the incorporation
of such banks the representatives of the banks so designated will be requested to meet promptly in the
Federal Reserve City of their respective districts so that the certificate which has been prepared by the
Committee may be executed and filed with the Comptroller of the Currency. When this has been done
all subscribing banks, under the Committee's interpretation, will be treated as MEMBER banks, and
the election of ELECTORS and the nomination of Directors may be immediately proceeded with.
ELECTION OF DIRECTORS.
A later paragraph of Section 4 of the Federal Reserve Act reads in part as follows:
"The Chairman of the Board of Directors of the Federal reserve bank of the district in which the
bank is situated or, pending the appointment of such Chairman, the Organization Committee, shall
classify the member banks of the district into three general groups or divisions. EACH GROUP shall
contain as nearly as may be ONE-THIRD OF THE AGGREGATE NUMBER of the member banks
of the district and shall consist, as nearly as may be, of BANKS OF SIMILAR CAPITALIZATION.
The groups shall be designated by NUMBER, by the Chairman."
GROUPING OF BANKS.
In accordance with the above provision the Organization Committee will divide the banks of your
district into three groups.
Group No. 1 will contain approximately one-third of the aggregate number of banks in your district and will be composed of banks of the largest capitalization.
Group No. 2 will include approximately one-third of the aggregate number of banks in your district and will embrace the banks having the next largest capitalization.
Group No. 3 will include approximately one-third of the aggregate number of banks in your district, being composed of those having the smallest capitalization.
While, under the terms of the statute, banks can not be officially grouped until the Federal Reserve
Banks are incorporated, that is to say, until the organization certificate has been filed with the Comptroller of the Currency, an analysis has been made of those banks which have signified their intention


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
to subscribe and for your information there is attached hereto as "Exhibit A" a tentative analysis
which will show, with slight variation, the group to which the banks of each of the several districts will
be assigned.
DISTRICT RESERVE ELECTORS.

Section 4, continuing, reads as follows:
"AT A REGULARLY CALLED MEETING of the BOARD OF DIRECTORS OF EACH
MEMBER BANK in the district, it SHALL ELECT BY BALLOT a district reserve ELECTOR and
shall certify his name to the Chairman of the Board of Directors of the Federal Reserve Bank of the
district. The Chairman shall make lists of the district reserve electors thus named by banks in each of
the aforesaid three groups, and shall transmit one list to each elector in each group."
As all banks are required to send in their subscriptions not later than May 8th, it is expected that
the organization certificate will be filed with the Comptroller of the Currency by the several Federal
Reserve Banks immediately thereafter, and it is, of course, desirable that the Class "A" and Class "B"
directors should be regularly elected as soon thereafter as possible, and the Class "C" Directors
appointed by the Federal Reserve Board.
Accordingly, if the member banks will arrange to hold meetings of their directors PROMPTLY,
after the Federal Reserve Banks are incorporated, for the purpose of electing district reserve
ELECTORS,and nominating CANDIDATES for Class "A" and Class "B" Directors, the organization
of the Federal Reserve Banks will be greatly facilitated.
The manifest purpose of electing district reserve ELECTORS is to obviate the necessity of convening the Botirds of the various member banks in order to vote on the nominees, and as no ELECTOR
should represent more than one bank it is suggested that each member bank select one of its own
officers or directors to act in this capacity.
NOMINATION OF CANDIDATES.

Section 4, continuing further, reads as follows:
"Each member bank shall be permitted to nominate to the CHAIRMAN one candidate for director
Class "A" and one candidate for director of Class "B." The candidates so nominated shall be listed
of
by the Chairman, indicating by whom nominated, and a copy of said list shall, WITHIN FIFTEEN
DAYS after its completion, be furnished by the Chairman to each ELECTOR."
Under the Federal Reserve Act the Organization Committee, prior to the selection of Class "C"
Directors, performs the duties and has the authority of the Class "C" Director who is Chairman of the
Board of each Federal Reserve Bank.
Under the provisions of Section 4, directors of Class "A" shall be chosen by and be representative
of the stockholding banks.
Directors of Class "B" shall, at the time of their election, be actively engaged in their district in
commerce, agriculture, or some other industrial pursuit.
The Elector does not select the nominees whose names are to be placed on the ballot for Class "A"
and Class "B" directorships, but the sole duty of the Elector is to vote on the candidates after they
have been nominated.
At the same meeting at which the district reserve ELECTOR is elected, each member bank may,
by its BOARD OF DIRECTORS, nominate for its respective group, one candidate for Class "A" and
one candidate for Class "B" directors.
Candidates for Class "A" should be residents of the district and should be representative of the
banks of the district. They may be officers, directors, or stockholders of any of the member banks
located in the district and need NOT NECESSARILY be officers, directors, or stockholders of any
bank of the particular group of banks placing them in nomination, or of any other bank.
In like manner, directors of Class "B" must be residents of the district and must be engaged in
commerce, agriculture, or some other industrial pursuit. Accordingly, if any attorney, physician, or
o engaged in
other professional man, is placed in nomination, it must appear that such nomin
Officers or
Directors can not b
one of the pursuits specified by the statute. Class "B"
Directors in any Bank.
Should read "eriplvee".
See letter attached

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
Forms will be mailed to each member bank in each district for use in reporting to the ORGANIZATION COMMITTEE (which, until the selection of the chairman of the Board of each Federal
Reserve Bank by the Federal Reserve Board, shall act in the place of the said Chairman) the name of
the district reserve ELECTOR, and the nominees of Class "A" and Class "B" directors.
When these forms shall have been received by the Organization Committee a list will be prepared
of all district reserve ELECTORS, and mailed to each Elector in each district in compliance with the
statute.
A form of ballot has also been prepared which will show the candidate for Class "A" and the
candidate for Class "B" directors of each group and this ballot will be sent in due course to each
district reserve ELECTOR, in order that his vote may be cast in accordance with the provisions of the
statute.
Each district reserve Elector will indicate on this ballot his first, second, and third choices for ONE
director of Class "A," and his first, second, and third choices for ONE director of Class "B."
The ballot furnished will show all nominees of the group and the name of the bank nominating
each candidate.
Each group will elect one Class "A" and one Class "B" director. The Electors will therefore vote
only on the nominees of their own group, and not on all the nominees of their district..
When these ballots have been received by the Organization Committee, a poll will be made and the
result of the election announced as early as practicable.
When this announcement has been made and the Federal Reserve Board has named the three Class
"C" directors in each district, the Board of Directors of each Federal reserve bank will be immediately
convened, and organized, and this Board will then adopt such by-laws and elect such officers as may
be deemed necessary.
The Board of Directors of each Federal Reserve Bank will also arrange for proper banking quarters
and for the employment of the necessary clerical force in order to place the banks in operation as early
as possible.
The organization of the Federal Reserve Banks in those districts whose member banks act promptly
will not be held back and delayed to keep pace with the organization of banks in other districts whose
member banks are slow in taking action and in making their returns to the Organization Committee.
It will be observed from the foregoing that the cooperation and PROMPT ACTION of the
MEMBER banks is important in order to have the Federal Reserve Banks ready for business at the
earliest date practicable.
Respectfully,
M. C. ELLIOTT9
•
Secretory Reserve Bank Organization Conzmittee.

EXHIBIT A-Tentative analysis showing probable groups or divisions of member banks by districts.

•

Dist.
No.

Federal Reserve
City.

1 Boston
2 New York
3 Philadelphia
4 Cleveland
5 Richmond
6 Atlanta
7 Chicago
8 St. Louis
9 Minneapolis
10 Kansas City
11 Dallas
12 San Francisco.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

No.
of
banks.

Aggregate capital
and surplus of each
member bank.

148 $250,000 or more....
190,000 or more....
160
190,000 or more....
253
150,000 or more....
257
140,000 or more....
160
130,000 or more....
126
120,000 or more....
319
100,000 or more....
151
60,000 or more....
230
75,000 or more....
279
100,000 or more....
245
120,000 or more....
172

Group No. 3.

Group No. 2.

Group No. 1.
No.
of
banks.

Aggregate capital and surplus of each member bank.

No.
of
banks.

148
159
252
255
158
124
319
151
230
277
244
170

Less than $250,000 but more than $120,000__
Less than $190,000 but more than $70,000...
Less than $190,000 but more than $75,000...
Less than $150,000 but more than $60,000...
Less than $140,000 but more than $60,000...
Less than $130,000 but more than $60,000...
Less than $120,000 but more than $55,000...
Less than $100,000 but more than $50,000...
Less than $60,000 but more than $30,000...
Less than $75,000 but more than $40,000...
Less than $100,000 but more than $50,000...
Less than $120,000 but more than $55,000...

148
159
252
255
158
124
319
151
230
277
244
170

ea
s
Aggregate capital
mem lr
and u weus of k.ch

$120,000 or less.
70,000 or less.
75,000 or less.
60,000 or less.
60,000 or less.
60,000 or less.
55,000 or less.
50,000 or less.
30,000 or less.
40,000 or less.
50,000 or less.
55,000 or less.

ADDRESS REPLY TO
RESERVE BANK ORGANIZATION COMMITTEE
TREASURY DEPARTMENT
WASHINGTON, D. C.

RESERVE BANK ORGANIZATION COMMITTEE
WASHINGTON, D. C.

Sir:
In the circular dated May 6, 1914, in -,:articular reference to the election of Class A and C1a6s B directors of
Federal Reserve Banks the following sentence appears at the
bottom of page 2:
"Class "B" director can not be stockholders,
officers, or directors in any bank.."
This sentence should read as follows:


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

'To director of Class "B" shall be an officer,
director, or employee of any bank."
Respectfully,
IP%

1
7/
1
.
/
4fr
/

L41
^
>.

Secretary.

FEDERAL RESERVE BOARD
WASHINGTON

CIRCULAR No. 3.
AUGUST 25, 1914.
SIR:
You are requested to furnish the following information on the accompanying form for the use
of the Reserve Bank Organization Committee and the Federal Reserve Board in connection with
the organization of the Federal reserve banks.
This information is not intended for publication, but for the use of the Board.
Please supply carefully the information called for on pages 2, 3, and 4, and return this blank
promptly in the inclosed addressed envelope which requires no postage. Your immediate attention
to this request will facilitate the determination of the questions involved and will, it is hoped, enable
the Board to develop plans to accomplish the results desired with the least inconvenience.
Respectfully,
M. C. ELLIOTT,
Secretary Reserve Bank Organization Committee, Secretary pro tern Federal Reserve Board:


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RESERVE CITY BANKS.

2
Statement of condition of _

National Bank

of

at the close of business on the 31st day

(City and State.)

of August, 1914.
LIABILITIES.

Capital stock, surplus, and undivided profits
__ _ _ __________ _
$_
Time deposits (including all deposits not payable for 30 days or more, and all deposits
which are subject to 30 days' notice—that is, upon which the bank may require
30 days' notice before withdrawal)
Demand deposits
Bills payable

__

Circulation outstanding:
Secured by United States bonds

-------

Secured otherwise than by United States bonds

-

--------

Bank balances
All other liabilities
Total

---

RESOURCES.

Loans, discounts, and overdrafts
Bonds and other securities
Banking house, real estate, furniture, and fixtures
United States bonds to secure circulation
United States bonds to secure deposits
Balances with approved reserve agents and counted as reserve (give name of city and
amount carried in each city):

Five per cent redemption fund
Cash items
Cash_ __ _ _

- ---------

Gold or gold certificates
National bank notes

_

United States legal tender notes

4
.

Silver and silver certificates_

-

Minor coin
All other assets
Total


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

--------

3
Statement of condition of

National Bank

of

as it would appear if first installment of 1 per cent

(City and State.)

of capital and surplus had been paid on subscription to the stock of the Federal Reserve Bank
of its district on same date as is shown in statement of condition on opposite page, and if new
reserve requirements had at that time gone into effect, and transfer of proportionate amount of
reserve had been made to the Federal Reserve Bank of its district.
NOTE.—While capital stock payments and reserve transfers need not be made simultaneously,
for the purposes of this statement it will be assumed they will be so made.
LIABILITIES.

Capital stock, surplus, and undivided profits_
Time deposits__
Demand deposits

------

Bills payable
Circulation outstanding:
Secured by United States bonds_
Secured otherwise than by United States bonds
Bank balances
All other liabilities
Total_
RESOURCES.

Loans, discounts, and overdrafts
Bonds and other securities
Banking house, real estate, furniture, and fixtures
United States bonds to secure circulation
United States bonds to secure deposits_
Reserve balances:
With Federal Reserve Bank (not less than one-fifth of total reserve required) _ _
With approved reserve agents (give names of cities)—

Five per cent redemption fund
Cash items
Cash:
Gold or gold certificates_
National Bank notes_
United States legal tender notes
Silver and silver certificates_
Minor coin_
Federal Reserve Bank stock (amount of first installment—that is, 1 per cent of your
capital and surplus)
All other assets-------- _ _
Total_

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

__

_ _ _

_ _________

4
STOCK SUBSCRIPTIONS.
Please state from what city or cities you would probably withdraw balances in order to
pay the first installment of your subscription to the capital stock of the Federal
reserve bank of your district, giving amount, if any, that you would probably
withdraw from each city:

Please state what amount of the first installment of your subscription to capital stock
you would probably pay in gold or gold certificates out of funds in your own vaults
RESERVE BALANCES.
Please state what amount, if any, you would probably withdraw from approved reserve
agentsin order to make transfer of required reserve to the Federalreservebank of your
district if call were made and new reserve requirements became effective at any time
within 30 days from date

--

____

Please give names of cities from which such withdrawals would probably be made,
showing amount you would probably withdraw from each city

Please state what amount you would probably transmit from your own vaults in cash
to the Federal reserve bank to meet new reserve requirements
Please state what amount, if any, you would probably desire to rediscount with the
.
Federal reserve bank of your district in order to pay part of your reserve in eligible
paper..
NOTE.—In answering the foregoing questions it may be assumed that payment of subscription
and tiansfer of reserve are made simultaneously.

, of the above-named bank, do solemnly swear
(or affirm) that the foregoing statement is title, and fully and correctly represents the true state of the
several matters therein contained, to the best of my knowledge, information, and belief.
(Cashier or President.)

J Cashier.
President.
(Name of Bank.)
(City and State.)

STATE OF
COUNTY OF
Sworn to and subscribed before me this __ _ _
_ _ __ day of
hereby certify that I am not an officer or a director of this bank.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

[Seal.]

, 1914; and I

, Notary Public.

Form 21.

BANK,
, September ____, 1914.
On motion, it was resolved that the president, vice president, cashier, or treasurer, or any
one of them, be, and he hereby is, authorized, in behalf of this bank (company) to subscribe
dollars, payable in gold or gold certificates, to a gold fund to be created
and administered in accordanCe with the terms set forth in the report of the committee, dated
September 19, 1914, appointed by the delegates to the conference of clearing-house associations
of the central reserve and reserve cities held in Washington on September 4, which committee
recommended that a gold fund of $100,000,000 be contributed by the banks (both National and
State institutions) located in such cities, said report having been approved by the Federal
Reserve Board, as set forth in their letter of September 21, 1914.
I hereby certify that the above is a true extract of the minutes of a meeting of the board of
directors or trustees or of a duly authorized committee thereof of the
, held

, September ____, 1914.

[SEAL.]


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary of the Board.

Form 22.

FEDERAL RESERVE BOARD.

The PRESIDENT CLEARING HOUSE ASSOCIATION,

At the invitation of the Secretary of the Treasury and the Federal Reserve Board, a conference of delegates from clearing house associations was held at the Treasury Department in
Washington on September 4 for the purpose of considering problems growing out of the
extraordinary derangement of our foreign exchange markets following the outbreak of the
European war. This conference, after a day's deliberation, appointed a bankers' committee
charged with the duty of recommending to the board a plan for dealing with this situation.
The committee so named submitted on September 4 its first report, which advised the creation
of a gold fund of $150,000,000. This recommendation, owing to changes in the situation, was
modified in a subsequent report, dated September 19, favoring the creation of a gold fund of
$100,000,000 to be contributed by the banks and trust companies located in central reserve and
reserve cities.
The board has carefully considered the committee's report, and concurs in its conclusions
and recommendations. The board is convinced of the necessity of an adequate plan of national
cooperation to meet a situation which is of national dimensions, and it has no hesitation, therefore, in giving its approval to the plan proposed by the committee, and recommends your earnest
cooperation.
The board shares the committee's belief that the creation of a large gold fund at this juncture will have a far-reaching effect for good, and will prove an effective factor in restoring
confidence, in bringing relief, in protecting and strengthening the country's credit, and in facilitating the exportation of our products.
The board, therefore, recommends that your association appoint a committee to secure from
the national banks and State banking institutions of your city subscriptions aggregating
to the proposed gold fund. The board regards this amount as the fair quota to
be raised in your city, based upon the holdings of gold and gold certificates by the central
reserve and reserve cities as recently ascertained. The allotments provide a fair margin above
the total amount named. Any sums pledged in excess of $100,000,000 will be applied to a pro
rata reduction of all subscriptions to the fund.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
Forms of subscriptions and certified resolutions to be executed by participating institutions
have been prepared by the bankers' committee and are forwarded herewith. This board recommends that the sums specified be pledged as promptly as possible and that you send the pledges
and resolutions, duly executed, to the secretary of the Federal Reserve Board at Washington,
D. C.,in order that they may be available for the committee not later than October 1.
For the terms and conditions upon which the subscriptions to the proposed gold fund are
made your attention is particularly called to the report and plan signed by the bankers' committee and handed to you herewith.
Respectfully,

C. S. HAMLIN,
Governor Federal Reserve Board.

I am in accord with the views of the Federal Reserve Board and recommend the
adoption by the banks of the proposed plan.
W. G. McADoo,
Secretary of the Treasury.
WASHINGTON, D. C., September R1, 1914.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Form 23.

WASHINGTON, D. C., September 4, 1914.
To the honorable the SECRETARY OF THE TREASURY and the FEDERAL RESERVE BOARD.
SIRS: The committee appointed by the conference of bankers appreciates the desirability
of relieving the present international exchange situation and particularly of regulating the
outflow of gold. The committee at the same time realizes the necessity of promptly meeting
the obligations of banks, corporations, and individuals to Europe, thereby maintaining the
high credit of this country and demonstrating its ability to meet its obligations.
For this purpose and with this object in view, this committee recommends to the Federal
Reserve Board the following plan:
That the banks of this country, especially those located in reserve and central reserve cities,
be requested to contribute to a gold fund of $150,000,000, of which $25,000,000 to be immediately
paid into the depository of the Bank of England in Canada, for which a participation deposit
receipt will be furnished to each contributing bank. The remainder of the contributed
amounts to be subject to call by the New York committee through the local committees of the
respective cities and to be paid for in New York exchange.
Said New York committee to be appointed by the New York Clearing House Association
and said local committees to be appointed by the clearing-house associations of the respective
contributing cities. The committee appointed by the New York Clearing House Association
to be charged with the duty of handling the said fund, of fixing the price at which foreign exchange is to be bought and sold, and is to make requisition from time to time upon the respective
contributing cities through the local committees thereof. Said local committees shall have
supervision in the respective cities of the shipments and general withdrawals of gold.
This committee recommends that the Federal Reserve Board take steps to ascertain the
amount of gold that will be contributed by the banks in the respective cities, and that it use its
influence to have the said banks contribute their proper pro rata.
Respectfully,
JAMES B. FORGAN.
S. WEXLER.
BENJ. STRONG, Jr.
THOMAS P. BEAL.
L. L. RUE.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Form 24.

WASHINGTON, September 19, 1914.
To the honorable the SECRETARY OF THE TREASURY and the FEDERAL RESERVE BOARD.
GENTLEMEN: Referring to the recommendations contained in our communication of September 4:
We have, in compliance with your suggestion, given further consideration to the present
international exchange situation, taking into account the changed conditions arising from the
completion of plans for meeting the obligations of the city of New York payable in Europe.
This committee is of the opinion that the continuance of the high credit of this country
abroad will be demonstrated, and that normal conditions of the foreign exchange market will
best be reestablished by the prompt creation of a large gold fund for export if necessary, as suggested in our former report. We therefore recommend that the central reserve and reserve
city banks of the United States (both National and State institutions) be requested to contribute to a gold fund of $100,000,000 instead of $150,000,000, as originally proposed. Of this
amount, $25,000,000 should be made immediately available. The administration of the fund
should he conducted by a resident committee in the city of New York, where the principal
foreign exchange transactions of the country take place, and we suggest that the recommendation of the Clearing House Association of the City of New York for the appointment of the
following gentlemen as such committee be approved, namely:
Albert H. Wiggin, chairman.
William Woodward.
J. S. Alexander.
Francis L. Hine.
Benjamin Strong, jr.
F. A. Vanderlip.
We propose to arrange the details of the plan of administration with the New York committee so that the requirements of all parts of the United States for foreign exchange will be
fairly and impartially dealt with, and we suggest, in the event of any complaint on the part of
any contributor to the fund in connection with the distribution or use thereof, your board shall
appoint a committee of bankers to pass upon any such question, whose decision, under such
rules and regulations as you may prescribe, shall be final.
We further recommend that the National and State banking institutions in the central
reserve and reserve cities of the United States be requested by you to contribute to this fund,
due regard being given to their present holdings of gold as recently ascertained by your
direction.
As recommended in our report of September 4, we believe that a committee representing the
clearing-house association of each central reserve and reserve city should apportion in its district
the amounts and supervise the payments of gold or gold certificates for the creation of this fund,
and we therefore suggest that you address a letter to the chairman of the clearing-home corn(3) ,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
mittee in each of those cities recommending the appointment of such a committee, urging prompt
cooperation in this plan and stating the amount of gold which you may consider to be the proper
quota to be furnished by that city.
In order to facilitate the transfer of gold or gold certificates to New York by the contributing banks, it is recommended that they be permitted to deposit their contributions with the
nearest subtreasury of the United States, and that all expenses incident to transfers, whether
made through subtreasuries or otherwise, shall be an expense of the fund and shall not be borne
by the respective contributors.
The committee representing the New York Clearing House Association should have authority
to call upon the contributors for gold or gold certificates from time to time in instalments as
required (provided, that the contributors shall not be called upon to pay any portion of an
instalment which may make their investment in the fund at any one time exceed 25 per cent
of their original contribution), to arrange for shipments of gold to other countries, to sell
exchange and cable transfers against such shipments at such prices as they may fix, to determine to whom and under what conditions foreign exchange may be sold, to distribute the
proceeds of such sales among the contributing banks in New York funds, and to fix a date for
the termination and final settlement of the fund. We, therefore, recommend that the gold or
gold certificates be deposited in trust for the contributors in the vaults of the Clearing House
Association of the City of New York, subject to the control of the New York committee, and
that such committee issue to each contributing bank a certificate evidencing its contribution.
The proceeds of sales of exchange may then be distributed by the committee among the contributing banks in New York funds and the amount of such repayment indorsed upon each
certificate.
We have recommended that contributors to the fund be confined to the banks and trust corn-'
panies in the central reserve and reserve cities, so that banks which are members of the Federal
reserve system may make their payments at the time of the organization of the Federal reserve
baTiks out of their own cash.
We attach forms for pledges to be signed by contributing institutions and certified resolutions to be passed by their boards of directors or trustees. In case the plan should meet with
your approval, we espectf lly suggest that you inclose copies of these forms in your letter to be
o the clearinghouse associations.
addressed to the
Respectfully submitted.
JAS. B. FORGAN, Chicago,
(Sip:ned)
LEVI L. RITE, Philadelphia,
BENJAMIN STRONG, Jr., New York,
THOMAS P. BEAL, Boston,
SOL WEXLER, New Orleans,
Committee.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Form 25.

, September

, 1914.

The undersigned banks and trust companies hereby subscribe to a fund of $100,000,000, to
be payable in gold or gold certificates, and to be held and administered in accordance with the
terms of a report dated September 19, 1914, made by a committee representing central reserve
and reserve city banks of the United States, a copy of which report is attached hereto. The
amount pledged for contribution by each of the undersigned institutions is set opposite the
signature of a duly authorized officer thereof affixed hereto, and such pledge is made by
authority of a resolution of the board of directors or board of trustees (or a duly authorized
committee thereof) of each of the undersigned.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Name of bank or trust company.

Amount of pledge.

CIRCULAR NO. G.

FEDERAL RESERVE BOARD.
WASHINGTON, D. C., October 5, 1914.
In order to promote a desirable uniformity in the organization of the Federal reserve
banks, the Federal Reserve Board presents for consideration by the boards of directors a draft
of tentative by-laws and a chart giving the outline of a tentative organization for the banks.
Neither the by-laws nor the chart have been finally approved by the Federal Reserve Board.
They represent the work of certain experts who were appointed by the organization committee
to examine into the details of organization. They are, ttierefore, offered simply as a basis for
further suggestions to be made by the boards of directors of the Federal reserve banks.
When full consideration has been given to them, and such suggestions or modifications as
may be recommended have been transmitted to the Federal Reserve Board, the board will
appoint a subcommittee to formulate standard by-laws to be recommended to the several
boards of directors, subject to their approval. In like manner the board will, after full consideration of all suggestions that may come to it from the several boards, present a standard
form of organization to be followed, so far as practicable, by each bank.
The organization chart, already mentioned, is inclosed.
The tentative draft of by-laws referred to above, follows:
BY-LAWS
OF

THE FEDERAL RESERVE BANK
OF

PREAMBLE.
As provided in its Certificate of Organization, dated
the name of this bank
shall be The Federal Reserve Bank of
_ , and it shall do business in the City
, and serve the territory known as Federal
of
Reserve District-------------------... It was duly authorized to commence business by
the Comptroller of the Currency, under date of
ARTICLE I.
DIRECTORS.
SECTION 1. Number and Quorum.—The number of directors shall be nine. A majority of
the directors shall constitute a quorum.
SEC. 2. Classes.—The board of directors, as provided by law shall be divided into three
classes—A, B, and C. At its initial meeting each class shall designate one member of its
class whose term of office shall expire one year after the first day of January nearest the date of
such initial meeting; in like manner, one whose term shall expire in two years, and one in
three years. Thereafter, the term of office of each director shall be three years.
SEC. 3. Vacancies.—Vacancies shall be filled and successors elected in the manner provided by law.
SEC. 4. Meetings.—There shall be a stated meeting of the board every
at
o'clock a. m., or, if that day be a holiday, on the first preceding day not a holiday.
The chairman of the board shall be empowered to call a special meeting at any time, or
upon the written request of any three directors, or whenever requested so to do by the president.
63738-1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
SEC. 5. Powers.—The board of directors shall, subject to the approval of the Federal
Reserve Board, fix the compensation and define the duties (other than those herein provided
for) of officers, clerks, and employees of the bank. It shall duly provide for the expenses of
the Department of Federal Reserve Agent and for the pro rata amount of expenses of the
Federal. Reserve Board and the Federal Advisory. Council.
--The following shall be the order of business at each regular
SEC. 6. Order of Business.
meeting of the board:
1. Reading or inspection of minutes of the last regular meeting.
2. Report of the governor, including information concerning banking and business conditions in the district.
3. Report of the secretary-treasurer, or cashier, including detailed summary of all business
transacted since last regular meeting and statement of present condition, the latter to include:
(a) All official correspondence received from Federal Reserve Board;
(b) Statement of alrloans, rediscounts, investments, and purchases;
(c) Weekly statement of condition to Federal Reserve Board;
(d) Summary of condition of member banks;
(e) Minutes of meetings of boards of directors of branches, if any.
4. Committee reports.
5. Unfinished business.
6. Discount policy and formulation of report to Federal Reserve Board on reasons for
same.
7. New business.
ARTICLE II.
EXECUTIVE COMMITTEE.
SECTION 1. How Constituted.—There shall be an executive committee consisting of the
governor, the Federal reserve agent, and one director of class A or B. Such director shall be
1 months, and his successors shall be
elected by the board to serve for a period not to exceed
chosen in rotation until each member of classes A and B shall have served or shall have been
given an opportunity to serve. The board shall elect each month an alternate for service on
the executive committee, who shall be authorized to act in the absence or disability of the
member first chosen.
SEC. 2. Powers.—The executive committee shall hold meetings upon call of the Chairman
and shall cause to be kept minutes of all such meetings held by it, which shall be read and
approved by members of the board at the next succeeding meeting of the board.
SEC..3. Powers.—Subject to the regulations of the board of directors and of the Federal
Reserve Board, the executive com.mittee shall have the following powers:
1. To pass upon all commercial paper submitted for discount.
2. To initiate open market transactions.
3. To recommend to the board of directors, from time to time, changes in the discount
rates.
4. To buy and sell securities.
5. To apply for and provide for the security of such Federal reserve notes as may be necessary for the general requirements of the bank.
6. To employ clerks and other subordinates, to define their duties, and to fix their
compensation.
ARTICLE III.
OFFICERS.
SECTION 1. The officers to be chosen by the board of directors shall be a governor, a first
and a second vice governor,2 a secretary-treasurer,s and such other officers as the board may
from time to time determine. They shall hold office during the pleasure of the board.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1 The board may fix an appropriate term.'
The number of vice governors will depend upon the size of the bank and

2

The title of cashier may be preferred.

the character of its work.

3
SEC. 2. Chairman.—The chairman of the board shall preside at all meetings thereof. He
shall, together with the officers of the bank, have supervision of all credit records and data
concerning member banks and borrowers which may be compiled from reports and examinations of such banks. All reports and statements irade to the Federal Reserve Board shall be
submitted to the chairman and shall be countersigned by him as Federal reserve agent. All
examinations of member banks made on behalf of the Federal Reserve Board shall be conducted under his general direction as such agent.
SEC. 3. Deputy Federal Reserve Agent.—In the absence or disability of the chairman, as
such, or as Federal reserve agent, his powers shall be exercised and his duties performed by the
deputy Federal reserve agent. Subject to the rules and regulations of the Federal Reserve
Board and the direction of the Federal reserve agent, such deputy shall represent the bank in
examinations of member banks and shall perform such other duties as may be assigned to him.
In case of the absence or disability of both the Federal reserve agent and his deputy, the third
member of Class C of the board of directors shall act as chairman and Federal reserve agent
pro tem.
SEC. 4. The Governor.—The governor shall have general charge of the bank and shall preside at all meetings of the executive committee, subject, however, to such rules and regulations
as may be incorporated herein or from. time to time promulgated by the board of directors.
He shall have power to make any and all transfers of securities of the bank which may be
authorized to be sold by the executive committee and shall, jointly with the secretary-treasurer,
sign all certificates of stock of the bank.
In all cases where the duties of subordinate officers and agents of the bank are not
specifically prescribed by the by-laws or the board of directors, they shall be the duties specified
by and instructions of the governor. The governor may, with or without the advice of the
executive committee, suspend or remove any employee of the bank, subject, however, to a
hearing before said committee.
The secretary-treasurer shall have custody of the seal of the bank, with power to affix
the same to certificates of stock and other instruments, as may from time to time be required.
SEC. 5. The Vice Governors.--In case of the absence or disability of the governor, his
powers shall be exercised and his duties discharged by the first vice governor, and,in.the absence
or disability of the latter, by the second vice governor. In the event of the absence or disability
of all three the board of directors shall, by a majority vote of its members, appoint a director
governor pro tem.
--The secretary-treasurer shall carry out the instrucSEC. 6. The Secretary- Treasurer.'
tions of the Board of Directors regarding the custody of all moneys received and paid out on
of the bank. He shall, jointly with the. governor, have custody of all investments
of the bank. He shall keep the minutes of all board meetings and of all committees of the
board.
ARTICLE IV.
COUNSEL.
SECTION 1. The board of directors shall, upon such terms as it may prescribe, appoint a
counsel who shall represent the bank in such matters as may be assigned to him and shall
approve all legal instruments.

ARTICLE V.
AUDITOR.
SECTION 1. The board shall appoint an auditor, who shall be subject to its direction and
to that of the Federal reserve agent and shall make a weekly report direct to the board of
directors of the Federal reserve bank, giving a full statement of conditions based upon his
audit. The auditor shall have charge of the internal auditing of the bank, the reconciliation
of accounts, the periodical examination of branches, and, in general, the audit of all transactions, expenses, receipts, and disbursements.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1 The title of cashier may be preferred.

4
ARTICLE VI.
BONDS.

Subject to the rules and regulations of the Federal Reserve Board, the board of directors
shall provide all bonds necessary to cover officers and clerks of the bank.
ARTICLE VII.
BRANCHES.

All branches established by the board shall conduct business in the manner prescribed for
the main office and pursuant to such by-laws, rules, regulations, and directions as may from
time to time be promulgated by the directors and officers of the bank but subject to the
approval of the Federal Reserve Board.
ARTICLE VIII. ,
INFORMATION.
SECTION 1. All persons employed by the bank shall keep inviolate its business affairs and
concerns and shall not disclose or divulge the same to any unauthorized person whomsoever.
Any employee who shall give information contrary to this by-law shall be liable to immediate
dismissal.
SEC. 2. The action or policy of the board and of the executive committee shall not be
expressed by any individual member, except by its duly authorized officers after formal action
by the whole board.
SEC. 3. For the information of member banks and the public there shall be maintained
in the office of the secretary treasurer a bulletin board, upon which shall appear the current
rates of d*ount established by the directors and such other information as they may deem it
desirable to make public.
ARTICLE IX.
CERTIFICATES OF STOCK.

All certificates of stock shall be signed by the president and secretary treasurer and bear
the corporate seal.
ARTICLE X.
TRANSFERS.

No transfer shall be permitted, except upon the surrender of the outstanding certificate of
stock or scrip, and no new certificate shall be issued until the former certificate is canceled; but
the board of directors may authorize the issue of a duplicate in place of a lost certificate, taking
a satisfactory bond of indemnity. It shall be the duty of the Federal reserve agent to register
the stock or scrip of the bank.
ARTICLE XI.
AMENDMENTS.

These by-laws may be amended at any regular meeting of the board by a majority vote
of the entire 13oard, provided, however, that a copy of such amendment shall have been delivered to each member at least 10 days prior to such meeting.'
1 After the by-laws have been adopted and in order to retain uniformity it is suggested that so far as possible there shall be no permanent
changes in by-laws except on approval of a general committee on by-laws representing all the Federal reserve banks.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0

CIRCULAR NO. 6a.

DRAFT OF BY-LAWS RECOMMENDED BY THE COMMITTEE ON LEGAL MATTERS AND
PROCEDURE APPOINTED AT THE CONFERENCE OF DIRECTORS OF FEDERAL
RESERVE BANKS WITH THE FEDERAL RESERVE BOARD ON OCTOBER 20, 1914.
BY-LAWS OF THE FEDERAL RESERVE BANK OF
ARTICLE

I.—Directors.

SECTION 1. Quorum—A majority of the directors shall constitute a quorum for the transaction of business, but less than a quorum may adjourn from time to time until a quorum is
in attendance.
SEC. 2. Vacancies.—As soon as practicable after the occurrence of any vacancy in the
membership of the board the chairman of the board shall take such steps as may be necessary
to cause such vacancy to be filled in the manner provided by law.
•
SEC. 3. Meetings.—There shall be a regular meeting of the board every
at ------o'clock __ in., or, if that day be a holiday, on the first preceding full business day.
The chairman of the board may call a special meeting at any time and shall do so upon the
written request of any three directors or of the governor. Notice of regular and special meetings may be given by mail or by telegraph. If given by mail, such notice shall be mailed at
least
days before the date of the meeting. If given by telegraph, such notice
shall be dispatched at least
days before the date of the meeting. Notice of any
meeting may be dispensed with if each of the directors shall in writing waive such notice.
SEC. 4. Powers.—The business of this bank shall be conducted under the supervision and
control of its board of directors, subject to the supervision vested by law in the Federal Reserve
Board. The board of directors shall appoint the officers and fix their compensation.
The board may appoint legal counsel for the bank, define his duties, and fix the compensation.
SEC. 5. Special committees.—Special business of the bank may be referred from time to
time to special committees, which shall exercise such powers as the board may delegate to
them.
SEC. 6. Order of business.—The board may from time to time make such regulations as
to order of business as may seem to it desirable.

ARTICLE

IL—Executive

committee.

SECTION 1. How constituted.—There shall be an executive committee consisting of the
governor, the Federal Reserve agent, and one or more directors chosen from classes A or B;
the member or members of the committee chosen by the board shall serve during the pleasure
of the board or for terms fixed by it. Not less than three members of the committee shall
constitute a quorum for the transaction of business, and action by the committee shall be upon
thIA vote of a majority of those present at any meeting of the committee.
The committee shall have power to fix the time and place of holding regular or special
meetings and the method of giving notice thereof.
68126-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
Minutes of all meetings of the executive committee shall be kept by the secretary, and
such minutes or digests thereof shall be submitted to the members of the board of directors
at its next succeeding meeting. Such minutes shall be read to the meeting if required by'any
member of the board.
SEC. s2. Powers.—Subject to the supervision and control of the board of directors, as set
forth in Article I, section 4, the executive committee shall have the following powers:
(a) To pass upon all commercial paper submitted for discount.
(b) To initiate and conduct open-market transactions.
(c) To recommend to the board of directors from time to time changes in the discount rate.
(d) To buy and sell securities.
(e) To apply for and provide for the security of such Federal Reserve notes as may, in
the judgment of the committee or of the board, be necessary for the general requirements of
the bank.
(f) To employ or to delegate to officers of the bank authority to employ' clerks 'and other
subordinates and to define their duties and to fix their compensations.
(q) To approve bonds furnished by the officers and employees of the bank and to provide
for their custody.
(h) In general, to conduct the business of the bank, subject to the supervision and control
of the board of directors.
ARTICLE In.—Officers.
SECTION 1. The board of directors shall appoint a governor, a deputy governor, a secretary, and a cashier, and shall have power to appoint such other officers as the board may
from time to time determine to be necessary and appropriate for the conduct of the business
of the bank. The offices of deputy governor, secretary, and cashier, or any two of them, may
be held by one person, in the discretion of the board. The officers chosen by the board shall
hold office during the pleasure of the board.
SEC. 2. Federal Reserve agent.—The Federal Reserve agent, as chairman of the board,
shall preside at meetings thereof. Copies of all reports and statements made to the Federal
Reserve Board shall be filed with the Federal Reserve agent.
SEC. 3. Deputy Federal Reserve agent.—In the absence or disability of the Federal Reserve
.
agent his po- vers sh ill be exercised and his duties performed by the deputy Federal Reserve
agent, who m iy perform such other services as shall be prescribed by the board of directors
not inconsistent with his duties as provided by law.
SEC. 4. The governor.—Subject to the supervision and control of the board of directors, the
governor shall have general charge and control of the business and affairs of the bank and he
shall be the chairman of the executive committee. He shall have power to make any and all
transfers of securities or other property of the bank which may be authorized to be sold or
transferred by the executive committee or by ale board. The governor shall have power to
prescribe the duties of all subordinate officers and agents of the bank where such duties are not
specifically prescribed by law or by the board of directors or by the by-laws. The governor
may suspend or remove any employee of the bank.
SEC. 5. The deputy governor.—In case of the absence or disability of the governor his
powers shall be exercised and his duties discharged by the deputy governor, and in case of the
absence or disability of the deputy governor the board shall appoint one of the other directors
governor pro tem. The duties of the deputy governor shall otherwise be such as may be torescribed by the board of directors or by the governor. In case the board shall deem that the
business of the bank requires the appointment of one or more assistant deputy governors, it


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
shall have authority to appoint such assistant deputy governor or governors and shall prescribe
and define his or their duties.
SEC. 6. The secretary.—The secretary shall keep the minutes of all meetings of the board
and of all committees thereof. He shall have custody of the seal of the bank, with power to
affix same to certificates of stock of the bank, and by authority of the board or the executive
committee to such other instruments as may from time to time be required. The board of
directors may, in the absence or disability of the secretary, or upon other occasion where in the
discretion of the board greater convenience can be attained, appoint a secretary pro tern or
empower one or more officers to affix the seal of the bank to certificates of stock or other instruments. The secretary shall perform such other duties as may from time to time be prescribed
by the board of directors, the executive committee, or the governor.
SEC. 7. The cashier.—The cashier and at least one other officer designated by the board of
directors shall have the joint custody of all moneys, investments, and securities of the bank,
subject to such rules as the board may adopt for their safety. He shall perform such other
duties as may be assigned to him from time to time by the executive committee, the board of
directors, or the governor.
ARTICLE IV.—Certificates of stock.
SECTION 1. Signature.—All certificates of stock, or of payment of or on account of stock
sub3cription3, shill be signed by the governor or a deputy governor and the secretary or
cashier, or such other officers as may be prescribed by the board, and such certificates shall
bear the corporate seal.
ARTICLE V.
SECTION 1. Business hours.
--The bank shall open for business from
o'clock to
o'clock on each day except Sundays or days or parts of days established as legal holidays.
ARTICLE VI.—Amendments.
These by-laws may be amended at any regular meeting of the board by a majority vote of
the entire board: Provided, however, That a copy of such amendment shall have been delivered
to each member at least ten days prior to such meeting.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WASUINGTON 00/MIMI'S:a PRISSING OSTICS: 1114

CIRCULAR No. 7.

FEDERAL RESERVE BOARD.
WAsinNoToN, D. C., October 14, 1914.
In order to promote a desirable uniformity in the organization of the Federal reserve
banks, the Federal Reserve Board presents for consideration by the boards of directors drafts
of -a system of accounting for the banks. These have not been finally approved by the Federal
Reserve Board. They represent the work of certain experts who were appointed by the organization committee to examine into the details of organization. They are, therefore, offered
as a basis for discussion.
When full consideration has been given to them and such suggestions or modifications as
may be recommended have been transmitted to the Federal Reserve Board, the board will
appoint a subcommittee to recommend a standard accounting plan to the several boards of
directors, subject to their approval.
SYSTEM I.
The system of accounting to be chosen, and the extent to which machines are used in it,
will depend upon the scope and activity which the reserve banks are to have from the beginning,
and. in the.event that they are assigned large clearing functions, it will necessarily be a matter of extreme importance in assuring the smooth working of the system, the accurate and
prompt collection of items, and the development of reports and statistics comparable in character and truly reflecting the internal conditions of each of the several institutions. The
accounting system as subsequently outlined may be made a fundamental factor in providing
the means for a careful estimate of credit conditions throughout the country, as it provides
for a daily transmission, if desired, of detailed reports to the Federal Reserve Board at Washington, in order that that board may be constantly in touch with the operations of each bank
and the comparative condition of all the banks. In this way the board will be enabled to act
with full knowledge as to rates of discount and to advise the several banks concerning the
lines of paper that are outstanding throughout the country.
In designing the plan, these points have been observed:
(a) Particular care has been taken to introduce the most modern systems, using machinery
wherever possible, thereby securing the advantages of mechanical accuracy as compared with
the method of maintaining records by hand.
(b) The majority of the forms have been constructed to carry their respective items from
the time of receipt to final disposition. There is also a system of control throughout, with the
result that their use will materially reduce labor and increase efficiency.
(c) The entire accounting system has purposely been made elastic, so that it will fulfill the
needs of the largest as well as the smallest Federal reserve bank, and as the banks grow it will
not he necessary to revise the accounting plan.
(d) There has been constant recognition of the desirability of keeping the Federal Reserve
Board in daily contact with the Federal reserve banks.
(e) The system is adapted for use with any of the standard typewriting and adding
machines now on the market.
MAIL TELLER.

As there will in all probability be a large accumulation of mail from member banks, consisting of remittances for credit, collections, etc., between the hours of 2.30 p. m. and 8.30 a. m.,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
this department has been designed as the first operating unit, looking to the avoidance of
congestion in the morning.
. The work of the mail teller will begin, say, at midnight, and will consist in handling
incoming mail up to 5 a. m., the result being:
1. Preparation for morning clearance of such items as will be payable through the clearing
house (Federal reserve or otherwise).
2. Delivery to the transit department in one total of such items as may have been received,
payable out of town.
3. Delivery to the distributing desk in one total of such credits and debits as relate to the
accounts appearing upon the books of the Federal reserve bank.
4. Delivery to the note teller in one total of such miscellaneous items not covered in the
three subdivisions outlined.
The block system will be used in this, as in all other departments, the sectional proofs of
the work being accomplished by means of blocks, with the result that the ultimate proof of the
department will consist only of interlocking balances.
FORM MT 1.
This will be the block sheet of the department, to be used as previously outlined.
FORMS MT 2, 3, AND 4.
These van -colored slips to be used in correctly routing the different batches of debits and
credits after they are proved upon each block.
Forms Nos. 3 and 4 will cover the majority of the work leaving the department, and consequently are imprinted "Transit department" and "Note teller," while Form MT 2 is to be
used for such miscellaneous items as may necessarily be forwarded to other departments.
FORM MT 5.
This is a proof sheet for the department, the figures for which will be obtained from a
recapitulation of the block sheets.
FORM MT 6.
This is a suggested envelope which will inclose items intended for presentation to the
different members of the clearing hQuse.
CLEARING-HOUSE DEPARTMENT.
This department will be the successor of the mail teller, its work consisting in handling
.
incoming mail received subsequent to 5 a. m., the plan of operation of the two departments
being identical. except that the supervision and proof of incoming exchanges from the clearing
house will also be handled by this department.
The forms will consist of the following:
Foirn CH 1.
This will be the block sheet for the department.
FORMS CH 2, 3, 4, AND 5.
These varicolored slips will be used in correctly routing the batches of items from each
block sheet after its proof.
FORM CH 6.
This is the proof sheet of the department, the figures for which will be obtained by a.
recapitulation of all the blocks.
FORM CH 7.
This is a block sheet to be used in effecting the proof of incoming exchanges from the clearing house.
FORM CH S.
This is a proof sheet for the assembling of an individual proof of the morning exchanges
received from the clearing house, the figures being subsequently passed through the proof of the
distributing desk.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
FORM CH. 9.
This is a suggested envelope which will inclose itenis intended for presentation to the
different members of the clearing house.
DISTRIBUTING DESK.
For the concentration of figures, avoidance of errors, facilitation of work in the tellers'
cages, and siniplicity of posting for the general ledger, this department has been instituted in
order that the different tellers after the proof of each block may route to it such items as may
have been received, both debits and credits, affecting accounts appearing upon the books of the
Federal reserve bank.
The advantages of the distributing desk are many, and it will be found of particular value
as to apparent overdrafts, by the quick concentration in the bookkeepers' hands of such debits
and credits as may affect the accounts, but which, under ordinary circumstances, would not
reach the bookkeeper until the close of the day's business.
The forms of the department are as follows:
FORM DD 1.
This is a block sheet to be used in establishing sectional proofs of debits.
FORM DD 2.
This is a block sheet to be used in establishing sectional proofs of credits.
FORM DD 3.
This is a proof sheet for the department, the figures of which will be obtained from a
recapitulation of the block sheets.
PAYING TELLER.
The principal duties of the paying teller will be to make such cash disbursements over the
counter as may be necessary, effect the settlement of the clearing-house balances, examine
checks for correct signatures, arrange for the shipment of money to member banks, provide
for the forwarding of mutilated currency for redemption to the Treasurer of the United States
at Washington, and likewise provide for the redemption of Federal reserve notes with the
Federal reserve agent.
The paying teller will be responsible only for such cash as may be allotted to him, the principal cash reserves of the bank being under the joint control of other officers or directors.
The forms of the department''are:
FORM PT 1.
This will be used in arranging shipments of money to member banks. Its explanation is
as follows:
Slip No. 1: Notification to the member bank that its account has been charged and that
the shipment has gone forward.
Slip No. 2: Carbon copy of original advice, which will be inclosed with the shipment of
money.
Slip No. 3: Acknowledgment from member bank of receipt of the shipment.
Slip No. 4: Tracing slip to be retained as a follow-up,Jooking to the receipt of the acknowledgment.
Slip No. 5: Debit to member bank's account.
FORM PT 2.
This will be used in forwarding mutilated currency to the Treasurer of the United States
at Washington. Its explanation is as follows:
Slip No. 1: Advice to the Treasurer of the United States descriptive of the forwarding of
the cu rrenc7.
Slip No. 2: Carbon copy of original advice, to accompany the shipment.
Slip No. 3: Debit to Redemption account."
Slip No. 4: Credit to "Redemption account."
All of the above slips will be made use of upon the day the money is shipped, with the exception of slip No. 4, which will be retained, awaiting the return of the equivalent currency
•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
from Washington. The outstanding slips will, of course, prove to the controlling account upon
the general ledger.
FORM PT 3.
To be used in forwarding mutilated Federal reserve notes to the Federal reserve agent, its
explanation being:
Slip No. 1: Application to the Federal reserve agent for the issuance of new currency.
Slip No. 2: Acknowledgment from the Federal reserve bank to the Federal reserve agent
of receipt of the new currency.
Slip No. 3: Debit to "Federal reserve notes."
Slip NO. 4: Credit to"Federal reserve notes."
Slips Nos. 1, 2, and 3 will be attached and delivered to the Federal reserve agent with the
inntiliated currency, slip No. 3 being provided upon its reverse side with a form of acknowled.gment from the Federal reserve agent of the receipt of the mutilated currency. When the
new currency is delivered to the Federal reserve bank it will be accompanied by an acknowledgment of its receipt by the Federal reserve bank. Upon delivery of the new currency to
the bank. slip No. 4 will be used as a credit to "Federal reserve notes."
FORM PT 4.
This will be used by the Federal reserve bank in forwarding Federal reserve notes for cancellation to the Federal reserve agent, its explanation being:
Slip No. 1: Instructions to the Federal reserve agent, as to the cancellation of the
described Federal reserve notes.
Slip No. 2: Debit to "Federal reserve notes."
As the notes are delivered to the Federal reserve agent they will be accompanied by slips
Nos. 1 and 2, slip No. 1 being a record of the transaction for the Federal reserve agent, while
slip No. 2 is for use in reducing the outstanding Federal reserve notes, provision having been
made upon its reverse side for a form of acknowledgment of the receipts of the notes by the
Federal reserve agent.
FORM PT 5.
This is a form to be used in effecting the "Stop payment" of checks.
Folim PT 6.
This will be used when the notification for stopping payment has not been received upon
the form provided for the purpose.
FORM PT 7.
This is for use in acknowledging receipt of the regular form of "Stop payment" notice.
FORM PT 8.
A loose-leaf record, upon which will be inscribed under the name of the member bank a
complete description of the checks upon which it is desired to stop payment.
FORMS PT 9, 10, 11,12, AND 13.
Varicolored slips to be used in routing the different batches of items to the several
departments.
FORM PT 14.
Proof sheet for the department, upon which will be assembled the total figures of the day.
Upon the reverse side of the sheet provision has been made for the accumulation of the
different debits and credits to the several departments.
FORM PT 15.
This will be used for the occasional necessity of certifying checks of member banks, its
explanation being:
Slip No. 1: Notification to member bank of the fact that its account has been charged,
covering the certification of a specific check.
Slip No. 2: Debit to the member bank's account.
Slip No. 3: Credit to certified checks.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5
FORM PT 16.
When the certified checks are returned to the bank for redemption, they will pass through
the controlling account upon the general ledger and then be forwarded to the auditing
department in order that their control may be in agreement with the general ledger. The
auditing department will then affix this form to the checks and deliver them to the bookkeeping
department to be inclosed with the daily statement.
This is a proposed sheet which will be prepared by the paying teller each morning and
its purpose being to place the
will be delivered to the secretary-treasurer for
examination,
officials of the bank in touch with the condition of the cash of the bank.
RECEIVING TELLER.
This department will receive deposits from member banks located within the city in which
the Federal reserve bank is situated, and will also account for shipments of currency received
from other Federal reserve banks and member banks.
The forms of the department are as follows:
FORM RT 1.
This is for use in handling shipments of currency received for credit of member banks,
its explanation being:
Slip No. 1: Advice to the member bank descriptive of the receipt of the currency and the
amount placed to their credit.
Slip No. 2: Credit to the member bank's account.
FORMS RT 2, 3, 4, 5, AND 6.
These are varicolored slips to be used in routing the different classes of items to the several
departments.
Form RT. 7.
A block sheet for the sectional proof of the day's work.
FORM RT 8.
This is a proof sheet, the figures for which will be obtained from a recapitulation of the
block sheets.
NOTE TELLER.
The duties of this department will consist of the presentation find collection of notes,
drafts, and checks drawn upon nonmembers of the clearing house, all of which are payable
within the radius covered by the messengers of the Federal reserve bank.
The runners or messengers will be under the control and form a part of this department.
The forms are as follows:
FORM NT 1.
This is a proposed block sheet for the proof of the messengers' routes, upon one side of
which are listed the individual items comprising the route and upon the reverse side the checks,
currency, etc., which have been received in payment. The initial"N"is indicative of a cash
item charged to the note teller and which has been returned by the messenger unpaid. The
initial"C"is indicative of collection items (not cash), which have been returned unpaid by
the messengers.
The total of the items as appearing upon each side of the block must be in agreement and
constitute, as previously outlined, a proof of the messengers' routes.
FORM NT 2.
A block sheet for the distribution to the different departments of the checks, currency,
etc., which have been received in settlement of items charged to the note teller. A recapitulation of these blocks constitutes a proof of the day's work.
Fonms NT 3, 4, 5, 6, AND 7.
These are varicolored slips to be used in routing items to the different departments after
they are proved upon the block sheets.
65269-14-2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

6
FORM NT 8.
This is for use in charging back and returning cash items which are unpaid after
presentation. Its explanation is as follows:
Slip No. 1: Letter accompanying the item.
Slip No. 2: Debit to the member bank.
Slip No. 3: To be placed in a chronological file awaiting the return of the acknowledgment
postal.
Slip No.4: A postal card to be attached to the item when it is charged back and which will
be dated, signed, and returned by the member bank as an acknowledgment of receipt.
FORM NT 9.
In the event of the postal card, as outlined in NT 8, not being regularly returned, Form
NT 9, being a postal tracer, will be used.
FORM NT 10.
This is a proof sheet for the department, the figures of which will be obtained from a
recapitulation of the block sheets, as outlined in Form NT 2.
TRANSIT DEPARTMENT.
The transit department should be equipped with steel racks, providing suitable compartments for each member bank of its district, together with 11 other compartments, larger in
size, for the other Federal reserve banks.
These compartments will be divided into units, for the purpose of evenly distributing the
volume of business.
The handling and proof of the transit items will be obtained in the following manner:
(a) Items received by the different departments will be charged to the transit department
in batches, accompanied by slips designating the teller forwarding them and the amount of
each batch.
(b) Accumulated batches will be assorted to the different units listed and proved under
the sectional proof of the block system.
(c) A recapitulation of the block sheets will constitute a proof of the interlocking
balances with the tellers, and produce the figures to which each unit must prove.
(d) The proof of each unit will be obtained by adding together the totals appearing upon
the carbon copies of the remittance letters in process of being forwarded.
The forms of the department are:
FORM T 1.
A form to be used by member banks in their relations with Federal reserve banks when
forwarding for credit such items as they may receive drawn upon member banks located within
the Federal reserve city. The top sheet will accompany the checks, while the carbon will be
retained by the member banks to be used as a debit to their reserve account with the Federal
reserve banks.
It will be noted that this form, as well as Forms Nos. T 2, 3, 4, 5, 6, 7, 8, and 9, has been
equipped with a form of acknowledgment as well as a "follow-up." the acknowledgment td be
dated, signed, and returned by the receiving bank, and the "follow-up" to be placed in
chronological file under the date upon which the acknowledgment should be received—this will
enable the banks to trace intelligently any overdue cash letters.
Attention is called to the fact that the reverse side of sheet No. 1 of Forms Nos. T 1, 2, 3,
4, 5, 6, 7, 8, and 9 is to be carbonized; consequently it will not he necessary to place the usual
carbon paper between the original and duplicate parts of the form.
FORM T 2.
To be used by member banks in forwarding for credit such items as they may receive which
are drawn upon—
(a) Member banks located within their own district, but without the local radius, to be
determined by the Federal Reserve Board.
(b) Federal reserve banks of other districts.
(c) Member banks of other Federal reserve districts.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7
FORM T 3.
To be used by Federal reserve banks in their relations with member banks located in their
own city, but which because of inaccessibility may not clear through the clearing house
(Federal reserve or otherwise), necessitating the items being forwarded to them by mail for
collection. The top sheet will accompany the checks, while the second sheet or duplicate will
be the debit to the member bank's account.
FORM T 4.
This is identical with Form T 5, except that it is intended to cover instances where there
will not be many checks to forward.
FORM T 5.
To be used in forwarding items drawn upon member banks located without the city in
which the Federal reserve bank is situated, the top sheet accompanying the checks and the
second sheet or duplicate being the debit to member bank's account.
FORM T 6.
This is identical with Form T 5, except that it is intended to cover instances where the
number of checks to be forwarded are fewer in number.
FORM T 7.
For use of the Federal reserve banks in forwarding items to each other, the top sheet
accompanying the checks while the second sheet, or duplicate, will be a debit to "Transit
account."
FORM T 8.
For use of the Federal reserve banks in forwarding Federal reserve notes to each other.
The top sheet will accompany the notes while the duplicate will be a debit to "Transit account."
FORM T 9.
For use of Federal reserve banks in returning to each other unpaid cash items, the original
sheet accompanying the items while the duplicate sheet is a debit to "Transit account."
FORM T 10.
A claim ticket to be used in adjusting discrepancies in cash letters, such as incorrectness
in listing, noninclosure of items, etc.
FORM T 11.
To be used in confirming the action of correspondents, in supplying missing indorsements.
FORM T 12.
A form of postal tracer to be used in tracing overdue cash letters. The pink, or duplicate,
sheet will be retained in a chronological file, as a follow-up, looking to the receipt of a reply
to the tracer.
FORM T 13.
For use of member banks in returning unpaid cash items to the Federal reserve banks.
FORMS T 14 15, AND 16.
Van -colored slips to be used in routing batches of items to the different departments.
FORM T 17.
A form of block sheet for use in establishing sectional proofs of the day's work.
FORM T 18.
Proof sheet of the department, the figures for which will be obtained from a recapitulation
of the block sheets.
It is quite possible that an electric indorsing machine can be used to good advantage in
the transit department, and this thought should receive consideration.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

S
COLLECTION DEPARTMENT.
The following forms have been designed for regional banks, in handling such items as may
be forwarded to them for collection only.
FORM COLL 1.
This is intended for notes payable within the radius covered by messengers of the Federal
reserve banks. Its description follows:
Slip No. 1: Advice of disposition to member bank.
Slip No. 2: Credit to member bank (if paid).
Slip No. 3: Permanent record (to be filed chronologically, as to day of receipt, under name
of member bank).
Slip No. 4: Maturity slip, serving the same purposes as the ordinary "tickler."
FORM COLL 2.
This is designed for notes payable without the district covered by messengers of the Federal
reserve bank, necessitating the items being forwarded to corresponding banks for collection.
Its explanation follows:
Slip No. 1: Letter inclosing item to corresponding bank.
Slip No. 2: Acknowledgment of receipt from corresponding bank.
Slip No. 3: Maturity slip, to be used in following up returns.
Slip No. 4: Permanent record, to be filed chronologically, as to day of receipt, under the
name of member bank.
Slip No. 5: Advice of disposition to member bank.
Slip No. 6: Credit to member bank (if paid).
Slip No. 7: Debit to corresponding bank (if paid).
FORM COLL 3.
This will cover drafts and special items (exclusive of coupons), requiring specific advice
of payment and which are paid upon the day of presentation. Its explanation follows:
Slip No. 1: Advice of credit to member bank.
•
Slip No. 2: Credit to member bank.
FORM COLL 4.
This will be for items, other than notes, which are payable without the district covered by
messengers of the Federal reserve bank. Its explanation iollows:
Slip No. 1: Letter accompanying item to corresponding bank.
Slip No. 2: Tracing slip, to be used in following up returns.
Slip No. 3: Permanent record, to be filed chronologically, as to day of receipt under the
name of member bank.
Slip No. 4: Advice of disposition to member bank.
Slip No. 5: Credit to member bank (if paid),
Slip No. 6: Debit to corresponding bank (if paid).
FORM COLL 5.
This is for use in returning unpaid items, payable within the district covered by messengers
of the Federal reserve bank. Its explanation follows:
Slip No. 1: Letter to member bank returning the item unpaid.
Slip No. 2: Carbon copy for files.
,
FORM COLL 6.
acknowledgment of the receipt of items entered for collection.
Postal
FORM COLL 7.
This has been constructed for items (documentary or otherwise) requiring special care
and which will be held indefinitely awaiting payment. Its explanation follows:
Slip No. 1: Acknowledgment of receipt to member bank.
Slip No. 2: Advice of credit to member bank.
Slip No. 3: Credit to member bank.
It will be noted that on slip No. 3 of the above form space has been allotted for notations
descriptive of the progress being made looking to the ultimate disposition of the items.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

9
Foam COLL 8.
This is a postal form of tracer, to be used in tracing the disposition of items forwarded to
corresponding banks for collection. The pink slip attached is a carbon of a postal and will be
filed chronologically under the approximate day upon which a reply to the tracer should be
received.
FORM COLL 9.
This form is to be used in requesting the return of items forwarded to corresponding banks
for collection. The yellow sheet attached is a carbon copy and record of the original.
FORM COLL 10.
This is intended to reduce letter writing to a minimum, the form being designed as a departmental advice to member banks concerning their collections.
FOR3f COLL 11.
This is the block sheet for the department, and will be used in accordance with the block
system of proof throughout the bank.
FORMS COLL 12 AND 13.
These are slips to be used in routing debits and credits to the different departments and
upon which will be inscribed the total amount of each batch. Form No. 12 is for credits and
Form No. 13 is for debits, the different in color being indicative of the different classes.
FORM COLL 14.
This is a proof sheet for the department and upon which will be inscribed a recapitulation
of the day's work obtained from the block sheets.
LOANS AND DISCOUNTS.

As rediscounting for member banks and the proposed purchase of domestic bills of exchange. etc., in the open market may be extensive, it is thought that the application of forms
to machinery will materially facilitate the work of the department, and with this in view the
following plan has been designed:
UNEARNED DISCOUNT.

It is suggested that the Federal reserve banks, instead of following the usual practice of
crediting to Current earnings" such discount as may have been collected, adopt the plan of
Placing the discount in an account to be known as "unearned discount," and each day this
balance will be charged with the actual discount earned and the amount thus obtained credited
to "Current earnings" under the subdivision of "Discount."
This would mean that the statement of the bank would always appear upon a liquidating
basis, and from an analytical point of view would materially assist in showing the true
percentage of earnings to loanable funds.
LIABILITY.

While the usual method of ascertaining the amount of liability is from detailed statistics
compiled in book records, it will be noted that such entries in the liability ledgers cause a
duplication of work, entailing unnecessary labor in keeping them in a state of efficiency,
while under the proposed plan full details concerning liability are obtained at the same time
that the bookkeeping entries, advices, etc., are typewritten by the stenographer.
For the purpose, however, of ready availability of figures concerning the total liability
of concerns under the classifications of"Payer"and"Indorser"a skeleton ledger in loose-leaf
form will be maintained,the entries in which will be posted in total only, and the entire liability
of which must be in proof with the controlling balances on the general ledger.
As the Federal reserve banks will be principally interested in the credit standing of the
payer and the last indorser, and as it is very desirable to maintain only such figures of liability
as may be subject to proof, it is suggested that the liability records of the Federal reserve
banks consist of payer and indorser instead of drawer, acceptor, and indorser, as the establishment of liability figures under the latter three classifications would not be possible of proof
and would result in a lack of confidence as to the accuracy of such figures.
65269-14-3


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

10
In the event, however, of it being considered necessary to maintain liability figures other
than that of payer and the last indorser, this may be done by inserting additional sheets in
the skeleton loose-leaf liability ledger, the postings in the accounts to be executed in red ink,
which would be indicative of the fact that such figures are not to be included in the proof of
liability.
It is the purpose of this plan to provide the Federal Reserve Board at Washington with
a continuous record, in detail, of all notes or bills of exchange discounted for member banks
or purchased in the open market, these continuous records to be executed at the same time the
forms are written, without any additional labor upon the part of the Federal reserve banks,
such continuous records being mailed to the Federal Reserve Board at the conclusion of each
day's business, and which will be used by the credit bureau at Washington for the accumulation of such credit information as they may desire. This will enable the Federal Reserve
Board at Washington to be in close touch with that portion of the business of the Federal
reserve banks and place it in a position to accumulate automatically from 12 different
sources most valuable statistics concerning the credit standing of the borrowers from the
Federal reserve system.
In Forms BD.2, 3, 5, and 6 it will be seen that two of the last van -colored slips have been
allotted for liabilities, the thought being that the slips in question, after being posted in total
in the skeleton liability ledger, will be filed in a steel cabinet under an alphabetical arrangement of the names of the debtors.
The result of this would be an accumulation into one compartment, properly indexed, of
entire concentrated liability (except foreign exchange) of any concern, the controlling
the
figures of which would be in the skeleton liability ledger, which, as previously outlined, would
be posted in totals only.
As fast as the liabilities, represented by the slips, are liquidated. either at or before
maturity, the slips are taken from the steel cabinet and filed in usual course by the filing department, so that the retention of the slips in this way furnishes a permanent record which may be
consulted at any time.
It will be observed that this method will leave in the liability files, only"live" matter of a
current nature, consequently they will not be glutted by a mass of records relating to past liabilities while the easy maintenance of the subsidiary skeleton liability ledger will furnish immediate information, in total, as to the past and present liability of any concern..

TICKLER.
The last slip of the forms bears the designation of "Maturity slip" and its use will be that
providing the department with the information usually contained in a book "tickler." The
of
slips will be filed chronologically under the "Maturity of the notes," with the result that the
maturities of each day are accumulated in one compartment, properly indexed, and in the
right-hand corner of which the total amount maturing is immediately available.
As the day of maturity is reached, the city slips are taken from the maturity file and
checked to the city notes delivered to the note teller, likewise the country slips are checked to
the forms covering country notes in possession of the collection department. It will, therefore,
be seen that the slips have served the purpose of the usual book "tickler" in every possible
way, both as to available information and the checking of missorted items.
The maturity slips then will be used to reduce the liability of the different concerns in the
skeleton liability ledger, and to retire from the liability files the matured liabilities, keeping,
as outlined before, only "live" records in the liability files.

STATISTICS.
Maturities falling due within 30, 60, or 90 days and after, can easily be obtained from the
discount clerk, who will compute the figures from the totals appearing in the upper right-hand
corners of the indexes, in the maturity file.
Attention is called to the fact that it is not practical to carry the above statistics upon the
general ledger, inasmuch as daily adjustments would be obligatory. It is, however, feasible to
have the maturities of the items show under the classifications of the different months of the
year, such as the maturities falling due in January, February, etc.
All of the forms have been provided with space which may be used to either place, automatically, upon the general ledger the month of maturity, or the industry, etc., affected.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

11
CoxTrimous RECORDS.
As outlined before, it is suggested that the record of all notes discounted for or loans made
to member banks, or paper purchased in the open market, be transcribed upon what is known
as a "continuous record," this record furnishing an exact description of the note and being:
d by the stenogwritten in the same operation that the manifoldino• entries are being prepare
rapher.
Reserve Board at
These "continuous records" will be made use of in advising the Federal and the Federal
Federal reserve agents
Washington and in the interrelations between the
reserve banks.
A CCOUN TS.
ng
For the purpose of distinguishing between the classes of bills discounted, the followi
titles have been assigned:
Bills discounted—customers.
Bills discounted—bought.
FORM BD 1.
nt with the Federal
For use of member banks in empowering proper officials to rediscou
reserve banks.
FORM BD 2.
payable within a
This is intended to cover notes discounted for member banks which are as
follows:
bank's messengers. Its explanation is
radius covered by the Federal reserve
No. 1: Debit to "Bills discounted—customers."
Slip
Slip No. 2: Credit to "Bills discounted—customers."
Slip No. 3: Advice of credit to member bank.
Slip No. 4: Credit to member bank's account.
Slip No. 5: Credit to "Unearned discount."
Slip No. 6: Indorser's liability.
Slip No. 7: Payer's liability.
Slip No. 8: Maturity slip.
, either in
day of
All of the slips comprising the form are made use of upon the with thediscount on of slip
excepti
advices or for the establishment of liability,
bookkeeping entries,
d to the note and is
'
No. 2, being a credit to bills discounted—customers, which remains attache
awaiting maturity.
filed away with it
FORM BD 3.
on that it is designed to cover notes disThis is identical with Form BD 2, with the excepti
which would be payable without the radius covered by messengers
counted for member banks,
it would be necessary to forward theni to other instiof the Federal reserve banks, consequently the form follows:
explanation of
tutions for collection. The
ted—customers."
Slip No. 1: Debit to "Bills discoun bank inclosing the item for collection.
corresponding
Slip No. 2: Letter to
onding bank as to the receipt of the note.
Slip No. 3: Acknowledgment from corresp tomers."
to "Bills discounted—cus
Slip No. 4: Credit
ng bank.
Slip No. 5: Debit to the collectithe member bank.
of credit for
Slip No. 6: Advice
Slip No. 7: Credit to the member bank.
discount."
Slip No. 8: Credit to "Unearned
Slip No. 9: Indorser's liability.
Slip No. 10: Payer's liability.
Slip No. 11: Maturity slip.
slips Nos. 2 and 3 would be attached to the note when forAs to slips Nos. 2, 3, 4, and 5, for collection, while slips 4 and 5 would be retained by the
bank
warded to the corresponding
reserve bank and filed by it in a maturity file under the
collection department of the Federal would be proved to the controlling slips in the discount
which time they
due date of the item, at separated, would form the credit to "Bills discounted—customers" and
department, then being
a debit to the collecting bank.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

12
It will be noted that slips 2, 3, 4, and 5 were typewritten when the item was first handled
by the discount department, consequently it was delivered to the collection department with
the necessary forms to carry it to its final disposition, with the exception of the day of forwarding, together with the name of the collecting institution, both. of which will be transcribed
on the form by the collection department.
As the country notes will be delivered to the collection department the day following their
discount, provision has been made upon the reverse side of the maturity slips for an acknowledgment of the receipt of the items by the collection department.
FORM BD 4.
This is a continuous record, in loose-leaf form, Forwarding to the Federal Reserve Board
at Washington exact details of the bills discounted for member banks.
FORM BD 5.
This is similar .to Form BD 2, with the exception that it is intended to cover bills discounted—bought, being purchases made in the open market, instead of items discounted for
member banks, and which are payable within the district covered by messengers of the
Federal reserve banks.
FORM BD 6.
This is similar to Form BD 3, with the exception that it has been designed to cover
country notes purchased in the open market rather than discounted for member banks.
FORM BD 7.
This is identical with Form BD 4, except that it is designed to advise the Federal Reserve
Board at Washington of the exact description of bills purchased in the open market, rather
than discounted for member banks.
FORM BD 8.
This is a draft of an alphabetical index, to be used in separating the liability of debtors.
That portion of the index descriptive of the name of the concern will be modeled after
the usual form of indexes, permitting the changing of names at leisure.
FORM BD 9.
This is a draft of an index to be used in apportioning the brokers' slips in the liability
files, the purpose of placing such brokers' slips in the liability files being merely to enable a
proof of liability to be established, as of course there will be no liability attached to the
brokers unless they be compelled to indorse the commercial paper sold to the Federal reserve
banks.
FORM BD 10.
A chronological index, to be used in apportioning the maturity slips under the maturity
of the notes, the upper right-hand corner being glazed with a coating of celluloid, or something of a similar nature.
FORM BD 11.
Designed for collateral loans supported by Government bonds, warehouse receipts for
merchandise, etc. Its explanation follows:
Slip No. 1: Debit to "Collateral loans."
Slip No. 2: Credit to "Collateral loans."
Slip No. 3: Advice to member bank.
Slip No. 4: Credit to member bank.
Slip No. 5: Credit "Unearned discount."
Slip No. 6: Indorser's liability.
Slip No. 7: Payer's liability.
Slip No. 8: Maturity slip.
While it is assumed the Federal reserve banks will, in addition to making collateral loans
supported by United States Government bonds, be obliged to make other loans supported by


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

13
collateral, such as warehouse receipts, etc., covering merchandise, it is thought that loans of
this character should be somewhat restricted and, in every case, bear a maturity.
It may be well to note in addition to the above that there will be instances in which the
Federal reserve banks will rediscount items supported by collateral, so that the accounts
"Collateral loans secured by United States Government bonds" and "Collateral loans—
merchandise" would not be indicative of all the collateral loans made.
FORM BD 12.
A continuous record, in loose-leaf form, forwarding to the Federal Reserve Board at
Washington exact details of the collateral loans made each day.
FORM BD 13.
This is a card record for collateral loans supported by Government bonds, the card being
descriptive of the collateral and allowing space for substitutions, etc.
FORM BD 14.
This is a card record of collateral loans supported by warehouse receipts for merchandise,
etc., the card being descriptive of the collateral and allowing for payments covering withdrawals.
FORM BD 15.
For use in rediscounting with other Federal reserve banks and supports a controlling
balance upon the liability side 4 the general ledger known as "Rediscounts with other
Federal reserve banks." Its explanation follows:
Slip No. 1: Credit to "Rediscounts with other Federal reserve banks."
Slip No. 2: Debit to the discounting Federal reserve bank.
Slip No. 3: Letter inclosing item to discounting Federal reserve bank.
Slip No. 4: Acknowledgment of receipt from discounting Federal reserve bank.
Slip No. 5: Maturity slip.
Slip No. 6: Debit to "Rediscounts with other Federal reserve banks."
Slip No. 7: Credit to "Bills discounted." * * *
All of the above slips are made use of upon the day the items are forwarded for rediscount,
with the exception of slips Nos. 5 6, and 7, being, respectively, a maturity slip, and the subsequent liquidating entries. Slip NO. 5, descriptive of the maturity, will be filed chronologically
'
in a separate maturity file covering items "Rediscounted with other Federal reserve anks,
so that the total of the slips in this file will at all times prove the controlling balance upon the
general ledger. Slips Nos. 6 and 7 will be substituted in place of the note and held awaiting
maturity, at which time they will be separated and the debit to "Rediscounts with other Federal reserve banks" will be charged to the note teller and the credit to "Bills discounted"
forwarded to the general ledger.
The original maturity slip in the regular maturity file need not be disturbed in this instance,
as the reduction of bills discounted does not take place until the maturity of the items, consequently it is necessary that they be left where originally placed, viz., the regular maturity
file, in order that it will be in agreement with the controlling balances.
An adjustment of unearned discount would, of course, be necessary upon receipt of the
advice of credit.
FORM BD 16.
This form is to be used in handling items rediscounted for Other Federal reserve banks,
and which are payable within the district covered by the messengers of the Federal reserve
bank discounting the items.
It provides a controlling balance upon the"Resources" side of the general ledger, to be
known as "Rediscounts for other Federal reserve banks." An explanation of the form follows:
Slip No. 1: Debit to ".Rediscounts for other Federal reserve banks."
Slip No. 2: Credit to "Rediscounts for other Federal reserve banks."
Slip No. 3: Advice of credit to Federal reserve bank of
Slip No. 4: Credit of Federal reserve bank of
Slip No. 5: Credit to "Unearned discount."
Slip No. 6: Liability slip of Federal reserve bank of
Slip No. 7: Maturity slip.
66269-14-4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

14
FORM BD 17.
This is identical with Form BD 16, with the exception that it is intended to cover notes
rediscounted for other Federal reserve banks which are payable without the district covered
by messengers of the Federal reserve bank. Its explanation follows:
Slip No. 1: Debit to "Rediscounts for other Federal reserve banks."
Slip No. 2: Letter forwarding the item for collection.
Slip No. 3: Acknowledgment of its receipt.
Slip No. 4: Credit to "Rediscounts for other Federal reserve banks."
Slip No. 5: Debit to collecting bank.
Slip No. 6: Advice of credit to the Federal reserve bank of
Slip No. 7: Credit to the Federal reserve bank of
Slip No. 8: Credit to "Unearned discount."
Slip No. 9: Liability of Federal reserve bank of
Slip No. 10: Maturity slip.
FORM BD 18.
A continuous loose-leaf record to be forwarded to the Federal Reserve Board at Washington, D. C., by the Federal reserve bank discounting items for another Federal reserve bank.
FORM BD 19.
A sample loose-leaf sheet, to be used in effecting the daily accrual of earned discount, the
resulting figures to be used in a debit to"Unearned discount" and a credit to "Discount."
FEDERAL RESERVE NOTES.
It is proposed that when a Federal reserve bank wishes to issue Federal reserve notes, it
will reduce bills discounted and debit a controlling balance in its resources to be known as
"With Federal reserve agent to secure Federal reserve notes." After the Federal reserve notes
have been received from the Federal reserve agent, which it is assumed will be the same day,
the Federal reserve notes will be placed in the assets of the bank, their offset being a credit to
"Federal reserve notes."
As the hypothecated notes mature, it will be incumbent upon the Federal reserve banks to
either notify the Federal reserve agent of their desire to cancel the equivalent of Federal reserve
notes, or, as is most likely, exercise the option of substituting notes with more distant maturities
than those already hypothecated.
FORM BD 20.
This has been designed to cover both the hypothecation and possible substitution of discounted notes held by the Federal reserve agent to secure Federal reserve notes. Its explanation
follows:
Slip No. 1: Debit "With Federal reserve agent to secure Federal reserve notes."
Slip No. 2: Credit to "Federal reserve notes."
Slip No. 3: Maturity slip.
Slip No. 4: Credit "With Federal reserve agent to secure Federal reserve notes."
Slip No. 5: Credit to "Bills discounted * * *."
In hypothecating the notes with the Federal reserve agent it does not appear advisable
to retire the liability slips typewritten at the time of the first handling of the note, as the
hypothecation does not in any way affect liabilities and as the notes will eventually be returned
to the Federal reserve banks for collection but it will be obligatory, however, to remove the
maturity slip from the regular maturity fife, stamp it "With Federal reserve agent to secure
Federal reserve notes," and then forward it to the filing department to be filed in the permanent
record.
In substitution of the maturity slip described in the foregoing paragraph, slip No. 3 of
Form BD 20 will be used and filed chronologically in a separate maturity file covering the
outstanding notes with the Federal reserve agent, as in this way the bank will be in a position
to know at any time the exact notes held by the Federal reserve agent and also will be placed
in position to see upon what days substitution of notes will be required.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

15
FORM BD 21.
A continuous record, in triplicate, will be obtained from Form BD 20 and delivered with
the discounts to the Federal reserve agent by the bank. The first sheet of the continuous record
w111 serve as an application of the Federal reserve bank to the Federal reserve agent, while
the duplicate will be the receipt of the Federal reserve agent to the Federal reserve bank,
acknowledging the collateral as security, and the triplicate sheet will be the advice of the
Federal reserve agent to the Federal Reserve Board at Washington, descriptive of the issuance
of Federal reserve notes and the supporting collateral.
FORM BD 22.
This is a continuous record, in triplicate, covering the substitution of collateral by the
Federal reserve bank with the Federal reserve agent, upon the reverse side of each of which
are listed the notes which it is desired to retire, while upon the face of the sheets will be listed
the proffered collateral in substitution. The first sheet of the continuous record will be the
application of the Federal reserve bank to the Federal reserve agent, the duplicate sheet will
be the receipt of the Federal reserve agent to the Federal reserve bank covering the acknowledgment of the collateral received in substitution, while the triplicate will be the Federal reserve
agent's advice to the Federal Reserve Board at Washington of the substitution of collateral.
FORM BD 23.
This is a draft for the proposed skeleton loose-leaf liability ledger, which will be descriptive of the total indebtedness of concerns under the classification of"Payer"and "Indorser."
FORM BD 24.
This is a block sheet to be used in establishing sectional proofs of the day's work.
FORMS BD 25 AND 26.
Slips to be used in routing the different batches of debits and credits to the general ledger,
note teller, and distributing department.
FORM BD 27.
A proof sheet for the department, the figures for which will be obtained through a recapitulation of the block sheets.
FORM BD 28.
This is a triplicate record, which will be used in the release of collateral by the Federal
reserve agent when Federal reserve notes have been tendered to him for cancellation, its explanation being:
Sheet No. 1: Application to the Federal reserve agent for the release of the collateral.
Sheet No. 2: Permanent record for the Federal reserve agent.
Sheet No. 3: Advice to the Federal Reserve Board of the release of the collateral by the
Federal reserve agent.
Sheet No. 1 will serve as a permanent record for the Federal reserve bank, while sheet No. 2
will serve the same purpose for the Federal reserve agent and, in addition, place him in a position to prove the amount of notes being held as collateral; likewise sheet No. 3 will enable the
Federal Reserve Board to prove the correctness of "Rediscounts to secure Federal reserve
notes," as it appears upon the daily statement of the Federal reserve agent.
BOOKKEEPING DEPARTMENT.
This department will have charge of the maintenance of the accounts of the depositors of
the Federal reserve banks.
The usual method of handling such accounts is by means of bound ledgers, supported by
monthly statements, descriptive of the different debits and credits entering the accounts, while
under the proposed plan the bookkeeper will obtain, by machinery, a daily statement for the
depositor, at the same time that he is preparing his loose-leaf ledger sheet, indicative of the
day's transactions.
If not too expensive, it is suggested that the canceled checks of each account be returned
with the daily statement, inasmuch as it would place them in the possession of the depositors


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

16
at the earliest possible moment, and would do away with the necessity of filing and, likewise,
the maintenance of steel cabinets in which they must be assorted.
It will be observed that no provision has been made upon the daily statement for a "Key,"
as this will not be necessary under the general system as outlined in the bank—that of giving
specific advices covering the different debits and credits entering the accounts.
The forms of the department will be:
FORM B 1.
This is a combined ledger and statement sheet designed for machinery, but which with a
slight modification of ruling could be adapted to handwork.
The first duty of the bookkeeper in the morning will be to transcribe upon the top sheet
of the form the balance brought forward from the day prior, after which he will deliver the
previous day's ledger sheets to the filing department to be filed chronologically in a transfer
binder under the name and style of the depositor's account. He will then prove the total of
the assembled balances to his controlling account on the general ledger.
It may be well to note at this point that the daily statement to the member banks will not
contain the balance appearing to their credit at the close of business each day, but instead will
simply be a statement giving the balance of the day prior, together with the debits and credits
entering the account, inasmuch as it would hardly be advisable to forward a balance, the
accuracy of which would not be proved until the following morning. This, however, is a
matter of detail, which will best be determined after the first few days of operation, as it is
quite possible the nature of the work will enable all the tellers to forward their figures to the
general ledger in time to have the controlling balances in proof for the bookkeepers before
the conclusion of each day.
After the previous day's balances have been transcribed, the routine of the bookkeeper's
work will depend largely upon,the time of receipt of the morning mail, exchanges, and other
departmental entries.
FORM B 2.
To be used in reporting overdrafts to the proper official.
FORM B 3.
A form of card index upon which will be accumulated the overdrafts appearing in any
particular account.
FORM B 4.
A loose-leaf record upon which will be inscribed under the name of the member bank a
complete description of the checks upon which it is desired to stop payment.
FORM B 5.
This is a form in quadruplicate, which will be used in handling "Transit account," its
explanation being:
Page No. 1: Loose-leaf ledger sheet of "Transit account," to be retained as a permanent
record by the Federal reserve bank.
Page No. 2: Loose-leaf ledger sheet of "Transit account" for the Federal reserve agent, to
be retained by him as a permanent record.
Page No. 3: Advice from Federal reserve agent to the Secretary of the Treasury, which
will be signed by the agent after verification, and which will be the authority to the Secretary
of the Treasury to execute the debits and credits in the gold-reserve balances of the different
Federal reserve banks.
Page No. 4: Statement of the account to be forwarded by the Federal reserve bank to the
Secretary of the Treasury.
Pages 2 and 3 will be delivered to the Federal reserve agent page 2, as previously outlined,
being his permanent record, and page 3 his advice to the secretary. Page 4 has been designed
to afford the secretary the opportunity of checking the correctness of the Federal reserve
agent's figures, and also to remove the possibility of confusion in the event oil the Federal
reserve agent's advice going astray in the mails.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

17
GENERAL BOOKS.

It is proposed that the general ledger, daily statement book, profit and loss ledger, and
other ledger records which vitally affect the bank, be segregated from the regular bookkeeping
department in order that the controlling figures of the bank be under close observation and not
open to the casual examination of clerks.
The general-ledger bookkeeper will also prepare any statements of condition (exclusive
of statistics) which may be required by the directors or officials of the bank, Federal reserve
agent, or Federal Reserve Board.
Sample pages of the principal books which he will maintain have been drafted, and are
explained as follows:
GB 1.
Proposed sheet of a bound book to be styled a "General ledger," and which will contain
the controlling accounts of the bank.
0B2.
Proposed loose-leaf sheet for the "Daily statement book," the figures for which will be
obtained from a concentration of general-ledger accounts.
This book will be proved and delivered to the president or secretary-treasurer of the
Federal reserve bank each morning not later than 9.30 a. m., in order that they may know the
condition of the bank prior to the opening of business.
It will be noted that the leaves of the book are in duplicate, the plan being that the
duplicate statement of the condition of the bank will be delivered to the Federal reserve agent
for examination, and that he in turn will forward it, the same day, to the Federal Reserve
Board at Washington for their information.
On Friday of each week, if it is desired, the figures may be transmitted by telegraph to the
Federal Reserve Board for the compilation at their end of the concentrated figures of the
12 different banks.
GB 3.
Sample sheet of a bound book to be known as "Profit and loss ledger."
This will contain the descriptive record of profit and loss account and such other accounts
as may be deemed advisable.
GB 4.
To be used in preparing a difference record of the several departments, and will be placed
upon the desk of the secretary-treasurer on Monday morning of each week.
GB 5.
A ledger sheet for a subsidiary record giving the details of the short and over differences
the
the several departments, and must be in agreement with the difference account upon
of
general ledger.
GB 6.
at their
This form has been designed for use of the directors of the Federal reserve bank director
the plan being that the form will be manifolded so that each
regular weekly meetings,
will receive a copy.
GB 7.
This is an expense ledger which will be posted daily and must be in agreement with the
every
general ledger. It will be noted that it has been prepared with the thought ofeshowing ons.
although, of course, conditions will arise which may necessitat modificati
item of expense,
ACCOUNTING DEPARTMENT.

This department will handle the transfer of funds; redeem unpaid cash items which have
signature
for
been cleared through the clearing house: issue letters of advice; prepare and official for the
arrange
expense vouchers and checks drawn upon other Federal reserve banks,
depositing of funds for the credit of the 5 per cent fund of member banks.
65269-14-5


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

18
It will likewise be intrusted with the custody of contracts and will prepare such statistics
of earnings and expenses as may be desired.
It will also handle the analysis of accounts, under whatever method may be determined.
The forms of the department are:
FORM AC 1.
This will be used in transferring funds of member banks through other Federal reserve
banks its explanation being:
Top slip, page 1: Advice to Federal reserve bank, requesting the transfer to be made.
Slip No. 2, page 1: Advice to member banks that their account has been charged and the
transfer arranged.
Top slip, page 2: Credit to Federal reserve banks of
Slip No. 2, page 2: Debit to member bank's account.
Fon3r AC 2.
This is identical with Form AC 1, with the exception that it is intended to cover a telegraphic transfer of funds, its explanation being:
Top slip, page 1: Advice to Federal reserve bank, requesting the transfer to be made.
Slip No. 2, page 1: Advice to member banks, descriptive of the charge and informing them
that the transfer has received attention.
Top slip, page 2: Credit to Federal reserve bank of
Slip No. 2, page 2: Debit to member bank's account.
FORM AC 3.
For use in making transfers from one account to another, both of which keep balances with
the Federal reserve bank, its explanation being:
Top slip, page 1: Advice to member bank, reuesting the transfer.
Slip No. 2, page 1: Advice to the member bank whose account will be credited.
Top slip, page 2: Debit to the member bank, requesting the transfer.
Slip No. 2, page 2: Credit to the member bank whose account is to be credited.
FORM AC 4.
This will cover the depositing of funds over the counter, for credit of member banks'
accounts, its explanation being:
Slip No. 1: Letter of advice to member bank.
Slip No. 2: A duplicate of the above, which will be tendered as a receipt to the bank or
individual depositing the funds.
Slip No. 3: Credit to the member bank's account.
Slip No. 4: Auditor's checking slip.
FORM AC 5.
Intended to cover the receipt of instructions from member banks to deposit funds with
other banking institutions located in the same city in which the Federal reserve bank is situated. its explanation being:
Slip No. 1: Advice to the member hank that their instructions have received attention
and also giving the amount charged to their account.
Slip No. 2: Accompanied by a check of the Federal reserve bank, this slip will serve the
purpose of a letter of instructions to the institution receiving the funds.
Slip No. 3: Debit to member bank's account.
FORM AC 6.
This will be used in arranging deposits with the Treasurer of the TTnited States for the
credit of the 5 per cent fund of member banks, its explanation being:
Slip No. 1: Advice to member bank of the amount deposited.
Slip No. 2: Debit to member bank's account.
FORM AC 7.
A sample check to be used in redeeming unpaid items which have been cleared through
the clearing house:
No. 1: Form of proposed check.
No. 2: Credit to "Returned items."


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

19
FORM AC 8.
A proposed check to be used in drawing upon other Federal reserve banks, its explanation
being:
No. 1: Form of check, together with auditor's stub.
No. 2: Credit to the account of the Federal reserve bank upon whom the check is drawn.
FORM AC 9.
A proposed form of expense voucher, which would be descriptive of the particular invoice
intended to be covered, its explanation being:
No. 1: Form of check, to which is attached a statement of account.
No. 2: Credit to "Expense checks" and debit to "Provision for disbursements."
In this connection it may be suggested that a daily charge to expense, with a corresponding credit to "Provision for disbursements" sufficient to cover the average expense of the bank
would tend to indicate more clearly the actual current earnings.
If it is determined to debit expense only at the time of actual disbursement, then, of course,
the debit ticket in this instance would be labeled "Expense" instead of "Provision for disbursements."
FORM AC 10.
Proposed form of envelope which is intended to inclose such contracts as may be intrusted
to the department.
It will be noted that the face of the envelope provides full particulars concerning the
contract, dates of payment, and various other details.
FORM AC 11.
A tentative form of analysis, which could only be made use of when the actual conditions
surrounding the accounts can be determined and likewise after the base of operative expense
has been established. It has been tendered simply for the purpose of guidance when the time
arrives for its completion.
FORM AC 12.
Block sheet for the department to be used in establishing sectional proofs.
FORMS AC 13, 14, 15, AND 16.
Varicolored slips to be used in routing the different batches to the several departments.
FORM AC 17.
A proof sheet upon which will be assembled the figures obtained from a recapitulation of
the block sheets.
FORM AC 18.
This is a form which will be prepared and delivered to the different departments in order
that they may be in touch with the expenses of their respective departments.
SECITRITILS DEPARTMENT.
As this department will have charge of the purchase, sale, and custody of such securities
as will be classified under the general ledger account known as "Investments," it is suggested
that the manager be an officer of the bank.
The department will also have charge of the purchase and sale of securities for the account of member banks; and, in the event of the Federal reserve banks permitting member
banks to deposit securities with them for safe-keeping, they will have charge of such custodies.
The preparation of such statistics as may be required concerning the status of the different
classes of investments will also be intrusted to the department.
The forms are:
FORM S 1.
This will be used in purchasing securities for account of Federal reserve banks, its explanation being:
Slip No. 1: Debit to "Investments."
Slip No. 2: Debit to "Interest accrued receivable—investments."


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

20
FORM S 2.
This is a continuous record for the Federal Reserve Board at Washington, which will be
written at the same time the above form is executed, and which will be forwarded to the board
with the thought of placing it in a position to know, with the least possible delay, what investments -have been made by the Federal reserve banks.
FORM S 3.
This is a loose-leaf book which will be used in maintaining a descriptive balance of the
different classes of securities on hand and will be in agreement with the general ledger at all
times. Upon the reverse side of the sheet provision has been made for the listing of bond
numbers.
FORM S 4.
This is a sample page of a bound book which will be used to record purchase and sale
of securities for account of member banks.
Foam S 5.
Furnishes a summary of the condition of the investments, which will be made to the board
of directors of the Federal reserve bank each week.
FORM S 6.
A sample loose-leaf sheet to be used in effecting the daily accrual of interest, the resulting
figures to be used as a debit to "Interest accrued receivable—investments," and a credit to
"Interest—investments."
FORM S 7.
In the event of the Federal reserve banks holding securities in safe deposit for account
of member banks this form will be used, and is designed to fully described such custodies,
provision having been made for a nominal balance based upon par value and also for the date
and other details, etc., of their delivery.
Before filing the form all indices, except those covering the months when interest payments
are to be made should be removed, so that at a glance it may be seen what interest payments
are due in any month.
In order that a proof of the custodies be possible, it is suggested that a controlling balance
be placed upon the general ledger, which will in no way affect the assets or liabilities of the
banks, such as, on the debit side, "Custodies," and on the credit side "Custodies due correspondents."
Forms have not been drafted covering the handling of coupons, inasmuch as it is assumed
the Federal reserve banks will not burden themselves with their collection.
FOREIGN DEPARTMENT.
In general explanation of the following forms it is suggested that they have been constructed along two distinct lines, viz:
No. 1: That it will be the purpose of branch banks in the original handling of items to so
manifold their entries that the regional banks will be obliged to do the least possible work.
No. 2: That the regional banks only will maintain balances abroad, and as a consequence
any foreign-exchange transactions originating with branch banks will be for account of their
regional banks.
FORM FX 1.
Intended for use of regional banks, when forwarding cash items for credit, such items being
drawn in the currencies of their respective countries at 10 days' sight and under, together with
such long items as may be forwarded for immediate discount.
It will be noted in this form, as well as subsequent Forms Nos. 2, 3, 4, 5, and 6, that provision has been made for a double-accumulating typewriter adding machine, whereby at the
completion of the listing of the different items a total is readily obtainable both in foreign currencies and dollars. It may also be added that this necessitates a machine with Sterling
equipment.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

21
The first page of Form No. 1 will accompany the original drafts and documents. The
second page will be forwarded with the duplicate drafts and documents. The third or first liability sheet is for use of the liability clerk in the regional bank. The fourth or second liability
sheet is to be forwarded to the Federal Reserve Board at Washington for the accumulation of
their credit record. The fifth serves as remittance register as well as a debit to the foreign
bank to whom the items have been sent.
It will be noted that the plan of a remittance register will (rive full particulars as to the
entry, tenor, and amount of the bills, and at the same time assemble them in totals so that the
bookkeeper attached to the department is materially assisted in the correct postings of the different accounts. It might also be suggested that the clerk detailed for checking the correctness
of discounts, value dates, etc., has all particulars before him.
Attention is called to the fact that provision has been made in the last sheet for a
"follow-up"system looking to the prompt acknowledgment of the cash letters, the covering
receipts of which have already been attached to the original and duplicate letters forwarding
the items abroad.
FORM FX 2.
This has been constructed identically with Form FX 1, with the exception that it has been
designed to cover the forwarding of exchange to a branch or a correspondent of the institution
abroad, providing, as will be noted, a simultaneous advice to the regional bank's correspondent.
An example of this would be the forwarding of exchange to the Dresdner Bank in Hamburg
for account of Dresdner Bank, Berlin, for credit of the Federal reserve bank in Chicago. The
pages of the form will be used as follows:
Page 1: Letter accompanying original drafts and documents abroad.
Page 2: Letter accompanying duplicate drafts and documents abroad.
Page 3: Notification of the forwarding of the items to the foreign bank with whom the
checking balance is maintained.
Page 4: Liability sheet for use of the regional bank.
Page 5: Liability sheet to be forwarded to the Federal Reserve Board at Washington.
Nov 6: Sheet for remittance register.
FORM FX 3.
This is also for use of regional banks and intended to cover the handling of Australian
exchange when forwarded to the place of payment for collection, and at the same time for a
realization of the proceeds through negotiation at London. Explanation of its pages follow,
viz:
Page 1: Letter accompanying the original drafts and documents to Australia.
Page 2: Letter inclosmg seconds of exchange to London, looking to the negotiation of the
items.
, Page 3: Liability sheet for use of the regional bank.
Page 4: Liability sheet to be forwarded to the Federal Reserve Board at Washington.
Page 5: Sheet for remittance register.
Fonm FX 4.
This is identical with Form FX 1, being intended to cover short items drawn at 10 days'
sight and under, with the exception that it is designed for the forwarding by branch banks of
exchange for account of regional banks and includes a notification to the regional bank of the
forwarding of the items.
FORM FX 5.
This is similar to Form FX 2, covering the same purpose, with the exception that it includes a notification of the forwarding of the items abroad to the regional bank.
FORM FX 6.
This will cover the same ground as Form FX 3, except that it includes a notification to the
regional bank of the forwarding of the Australian exchange.
Concerning Forms FX 4. 5, and 6, it will be necessary for the regional banks to execute
entries at their end upon receipt of the notification from the branch banks, who will mail the
65269-14--6


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

22
following day the remittance-register sheets, to be placed in the regional bank's binder, awaiting the acknowledgment of credit from the banks abroad.
FORM FX 7.
For the purpose of maintaining a controlling balance upon such long items as may be purchased and which will be held without discount to maturity, it is proposed to establish an
account upon the general ledger to be known as"Unmatured foreign bills."
This form is intended to cover these bills when forwarded by a Federal reserve bank direct
to a correspondent abroad with whom it keeps a checking balance.
Page 1: Letter accompanying the original draft and documents abroad.
Page 2: Letter accompanying the duplicate draft and documents abroad.
Page 3: Serves as an acknowledgment of receipt and provides for a "follow-up."
Page 4: Is an advice of credit to customer.
Page 5: Is a credit to the customer's account.
Page 6: Is a debit to"Unmatured foreign bills."
Page 7: Is a credit to"Unmatured foreign bills."
Page 8: Is a debit to "Due from foreign banks."
It will be noted that the entire record and bookkeeping entries have been executed when
first handling the bill. Pages 7 and 8, being attached to one another, are filed in a chronological
manner, reflecting the maturity abroad of the item, consequently die bills are charged to the
foreign banks at the approximate due date, thereby keeping our books more closely in touch
with the balances abroad. It is provided, of course, that nonpayment of the items will be
cabled promptly. This résumé also applies to
FORMS FX 8, 10, AND 11.
This is identical with the above form, with the exception that it is designed to cover
long bills forwarded to branches or correspondents of the Federal reserve bank's correspondent abroad. Its explanation follows:
Page 1. Letter accompanying the original draft and documents abroad.
Page 2: Letter accompanying the duplicate draft and documents abroad.
Page 3: A notification to the regional bank's correspondent that the item has been forwarded to one of its branches or correspondents.
Page 4: Serves as an acknowledgment of receipt and provides for a "follow-up."
Page 5: Advice of credit to customer.
Page 6: Credit to customer's account.
Page 7: Debit to "Unmatured foreign bills."
Page 8: Credit to"Unmatured foreign bills."
Page 9: Debit to "Due from foreign banks."
FORM FX 9.
This will cover short items drawn at 10 days' sight and under in the following classifications, viz:
No. 1: When payable and forwarded to places where no relations have been established.
No. 2: When the items are drawn in currencies other than the currency of the countries
in which they are payable.
This class of items is quite apt to be very troublesome in handling, usually being drawn
upon distant points, and for the purpose of control it is suggested that they be grouped under
a general ledger account, to be known as "Foreign collection banks," and it is for this
account that form FX 9 has been constructed. An explanation of the form follows:
Page 1: Accompanies the original draft and documents abroad.
Page 2: Accompanies duplicate draft and documents abroad.
Pace 3: Serves as an acknowledgment of receipt and provides for a "follow-up."
Page 4: An advice of credit to the customer.
Page 5: Credit to customer's account.
Page 6: A debit to "Foreign collection banks."
Page 7: Credit to "Foreign collection banks."
Page 8: Debit to "Due from foreign banks."


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

23
FORM FX 10.
For long bills purchased by a branch bank and forwarded to a direct connection for
account of the regional bank maintaining the balance abroad.
It will be noted in the following explanation of the form that the record of the regional
bank as well as the member bank has been made at one writing, viz:
Page 1: Letters accompanying the original draft and documents abroad.
Page 2: Letters accompanying the duplicate draft and documents abroad.
Page 3: Provides for an acknowledgment and "follow-up."
Page 4: Advice of credit for branch bank's customer.
Page 5: Credit to branch bank's customer.
Page 6: Debit to "Unmatured foreign bills."
Page 7: Debit to the regional bank for whose account the item is handled abroad.
Page 8: Credit to "TJnmatured foreign bills."
Page 9: Notification to regional bank of the forwarding of the bill.
Page 10: Advice of credit from the regional to the branch bank.
Page 11: Credit to the branch bank.
Page 12: Debit to "Due from foreign banks."
FORM FX 11.
This is for long bills purchased by branch banks and handled as outlined above, when the
items are forwarded to a branch or a correspondent of the banking connection abroad. Its
explanation follows:
Page 1: Letter accompanying the original draft and documents abroad.
Page 2: Letter accompanying the duplicate draft and documents abroad.
Page 3: Letter of notification to the foreign bank for whose account the item will be
handled.
Page 4: Serves as an acknowledgement and a "follow-up."
Page 5: Advice to the branch bank's customer.
Page 6: Credit to the branch bank's customer.
Page 7: Debit to"Unmatured foreign bills."
Page 8: Debit to the regional bank in whose account the item will be credited when paid.
Page 9: Credit to"Unmatured foreign bills."
Page 10: Letter of notification from the branch to the regional bank of the forwarding of
the item.
Page 11: Advice of credit to the branch bank.
Page 12 Credit to the branch bank.
Page 13: Debit to "Due from foreign banks."
FORM FX 12.
This is designed for items covered by Form FX 9, except in this case they will be purchased by a branch bank and be handled in accordance with the thought outlined in Forms FX
10 and 11. Its explanation follows:
Page 1: Letter accompanying the original draft and documents abroad.
Page 2: Letter accompanying the duplicate draft and documents abroad.
Page 3: Serves as an acknowledgment and "follow-up."
Page 4: Advice of credit to the branch bank's customer.
Page 5: Credit to branch bank's customer.
Page 6: Debit to "Foreign collection banks."
Page 7: Debit to the regional bank.
Page 8: Credit to "Foreign collection banks."
Page 9: Letter of notification to the regional bank of the forwarding of the item.
Page• 10: Advice of credit to the branch bank.
Page 11 Credit to the branch bank.
Page 12: Debit to "Due from foreign banks."
FORM FX 13.
This will be a continuous record for items covered by Forms FX 7, 8, and 9, the original
of which will go to the liability clerk of the regional bank, while the duplicate will be mailed
to the Federal Reserve Board at Washington.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

24
FORM FX 14.
This will be a continuous record covering Forms FX 10, 11, and 12, the original of the
form being used by the liability clerk of the branch bank, while the duplicate will be forwarded
to the Federal Reserve Board at Washington.
FORM FX 15.
This will serve as an advice of credit to the member banks covering such items as might
be bought by the regional banks and which will be forwarded abroad on Forms FX 1, 2, and 3.
The attached duplicate will be a credit to the member bank's account.
FORM FX 16.
As only certain individuals in the foreign department will be authorized to quote rates,
this form has been devised for the purpose of
supplying the clerks who will receive and deliver
exchange, with authenticated rates, so that there will be no confusion incidental to prompt
handling.
FORM FX 17.
This is a daily balance sheet of the department, which will be prepared by the bookkeeper
and delivered to the head of the department daily, in order that he may be in close touch with
the condition of balances abroad, without the necessity of examining- the foreign ledger. It is
understood, of course, that in the left-hand column the names of the correspondents abroad
will be printed.
FORM FX 18.
This form will serve the purpose of recording special cable words not covered in the codes,
and which may be required as a notification of prompt payment or nonpayment.
FORM FX 19.
This form consists of a debit and credit ticket to be used in the transfer of funds from one
foreign account to another, principally because of cable transfers and arbitrage operations.
FORM FX 20.
This form serves as a confirmation covering the purchase of cable transfers from institutions through their brokers.
FORM FX 21.
The foreign department may require for counter use, as well as for the use of member
banks, a supply of drafts, and the form tendered herewith is to supply that want.
FORM FX 22.
In arranging for postal remittances ordered by member banks, this form has been constructed, the original of which will be forwarded abroad with the necessary instructions. The
carbon copy will be retained in a loose-leaf binder awaiting the return of the receipts.
FORM FX 23.
Upon the above receipts being received, they will be returned to the member banks upon
this form,the full data being obtained from the duplicate of Form FX 22, which, as previously
outlined, will be retained in a binder for the purpose.
The receipts covering postal remittances returned from abroad are usually written in an
undecipherable way, and the above forms and method of handling will materially assist in
completing the record.
FORM FX 24.
(Out. Travelers' record not required.)
FORM FX 25.
This has been modeled to relieve as much as possible formal letters being written by the
department, as it is felt that many routine matters can easily be covered by this form. The
duplicate will serve as a record for the files.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

25
FORM FX 26.
This is a series of postal cards to be used in tracing overdue items. The duplicate is filed
away under a maturity "follow-up"system, so that all overdue items will receive intelligent
and careful tracing.
FORM FX 27.
This form will be executed in triplicate and is intended to cover the depositing of funds in
institutions in accordance with instructions received from foreign banks. The first sheet is to
the bank receiving the funds. The two remaining portions of the form serve as an original and
duplicate receipt, the original being forwarded to the bank requesting the depositing of the
funds and the duplicate is for the files.
FORM FX 28.
(Out.)
FORM FX 29.
This is for use in arranging cable transfers and serves as a confirmation and bill (inclusive
of cable charges) to the customer, as well as a credit to the foreign bank and a"follow-up" to
see that the amount due is received.
FORM FX 30.
This covers the offerings of the foreign department, looking to the establishment of lines
of credit needed for the purchase and sale of exchange.
FORM FX 31.
For use of the liability clerk in the foreign department, and is indicative of the total
liability of customers, both as drawer and drawee.
FORM FX 32.
For use of the liability clerk in the foreign department, and shows the total of pa-ver's
liability under "Unmatured long items."
FORMS FX 33 AND 34.
This is a suggested "block sheet," together with a tab for use in routing items to different
departments.
Foint FX 35.
A ledger sheet for the foreign department ledger and from which it will be noted a balance in dollars is obtainable at any time. A balance in foreign amounts is deemed unnecessary,
as it would serve no useful purpose except for the reconciliation of the account at stated intervals, at which time the auditing department can easily strike the balance.
FORM FX 36.
This is for use of the manager of the foreign department, who will do the trading, or who
will influence the trading and arrange for the establishment of quotations. It has been
arranged upon a Chicago basis, but, of course, it may easily be adjusted to whatever center it
is determined to have the rates emanate from.
FORMS FX 37 AND 38.
These sheets are intended to be compiled weekly by the liability clerk of the foreign department and in turn to be delivered to the manager of the department for the purpose of keeping
him in close touch with the liabilities of his clients, without the necessity of consulting the
liability ledger. It is also suggested, if required, that the originals, or perhaps duplicates, of
the form be delivered to the board of directors of the Federal reserve bank at stated intervals.
FORM FX 39.
This is designed to cover the receipt of a cable from abroad, concerning which it is necessary to cable a reply and may be of use in relations with member banks as well as for those
froin whom bills of exchange have been purchased in the open market.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

26
FoRavr FX 40.
This form is somewhat descriptive of its use and is intended to be a matter of record of the
addition of any word in the private cable code.
FORM FX 41.
This is an added ledger sheet for the foreign department ledger, descriptive of the record
of purchases and sales of foreign currency over the counter. Its use will enable any examiner
to know just how much of any Particular foreign currency is being held in the department,
together with the dollar value at which it is being carried on the books.
FORMS FX 42 AND 43.
•
These are credit and debit tickets descriptive of the different classes of foreign currency
bought and sold, and from which the bookkeeper will post to the foreign currency sheet.
FORM FX 44.
This is a labor-saving form which covers an advice to the customer, together with a debit
and credit to different accounts.
FORM FX 45.
This is identical with Form FX 44, with the exception that the advice to the customer
reflects a debit in his account, the manifolding entry being a credit to some other account.
FORM FX 46.
A suggested form of daily statement for the foreign department, showing its condition in
a similar manner to that of the rest of the bank. This daily statement should be in the hands
of the administration of the bank each morning at the same time that the daily statement
book of the general bank is being examined, so that the two may be compared if necessary.
FORM FX 47.
This form has been arranged in order that the regional banks might be equipped to handle
strictly collection items payable in foreign countries, and upon which no advance or credit
would be made until the actual settlement of the item. Its explanation follows:
Page 1: Accompanies the original draft and documents abroad.
Page 2: Accompanies the duplicate draft and documents abroad.
Page 3: Serves as an acknowledgment of the receipt of the item, together with a
"follow-up."
Page 4: Is an advice of credit to the customer.
Page 5: Is a credit to the customer's account.
Page 6: Is a debit to "Due from foreign banks."
FORM FX 48.
This is identical with Form FX 47, with the exception that it is intended to cover strictly
collection items payable in foreign countries, which may be received by branch banks and which
would be forwarded abroad for account of its regional bank. Its explanation follows:
Page 1: Accompanies the original draft and documents abroad.
Page 2: Accompanies the duplicate draft and documents abroad.
Page 3: Serves as an acknowledgment to regional bank of the receipt of the item.
Page 4: Serves as an acknowledgment to branch bank of the receipt of the item, together
with a follow-up."
Page 5: Advice for customer of the branch bank.
Page 6: Credit for customer of the branch bank.
Page 7: Debit to the regional bank.
Page 8: Letter to the regional bank descriptive of the forwarding of the item.
Page 9: Advice for branch bank.
Page 10: Credit for branch bank.
Page 11: Debit to"Due from foreign banks."
FORM FX 49.
A sample check to be used by the regional bank in drawing upon their direct connections
abroad, and concerning which it will be noted that the original and duplicate advices, together
with the credit to the foreign bank's account, as well as the auditor's checking stub, have been
written at the time of the issuance of the check.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

27
FORM FX 50.
A sample check to be used by the regional banks in drawing upon a branch or a correspondent of their foreign connection.
FORM FX 51.
A sample check for the use of regional banks in drawing their long drafts upon a direct
connection abroad.
FORM FX 52.
This is the departmental daily proof sheet, upon which is transcribed the totals as
obtained from the recapitulation of the"Block"sheets.
It will be noted that in each case the accounts described upon the proof sheet represent
simply interlocking balances with the general ledger and other departments, so that the proof
of the accuracy of the figures is controlled by other departments.
AUDITING DEPARTMENT.
The duties of the auditor will be largely governed by his vested power and authority, but
in no sense should his department form an operating unit of the bank.
His functions should be those of verification and control, systematic examinations of the
different departments, criticism of discipline and system, and he should have a general knowledge of the earnings and expenses of the bank.
The routine of the auditing department would consist of examinations, verification of
correction entries, scrutiny of general-ledger tickets, adjustment of errors, reconciliation of
balances, both domestic and foreign, maintaining direct correspondence with member banks,
etc., in reply to inquiries affecting the adjustment of accounts, investigations resulting from
the bank who desire
the marking of mail matter to the auditing department by the officers
special investigations to be made, control with a daily proof and by means of checking to
stubs all cashier's checks, expense vouchers, redemption checks, and certified checks; arranging
for the handling and reforwarding of national bank examiners' requests for information, and
establishing a proof upon the general ledger.
The forms of the department would be:
FORM A 1.
This will be used for the registration of such inquiries as may be received in connection
with examinations by bank examiners, directors, etc.
FORM A 2.
To be used in forwarding the balance of any account, as at the close of business on a certain
day, in response to an authorized request.
FORM A 3.
Reconcilement blank to accompany the daily statement which will be forwarded to each
account upon the last business day of the month.
FORM A 4.
Sample envelope to be inclosed with the above form of reconcilement in order that its
return may be made directly to the auditing department.
FORM A 5.
Card record for registering the receipt of reconcilements.
FORM A 6.
A tracer to be forwarded no later than the 15th of the succeeding month to such accounts
as have not reconciled their balance of the month prior.
FORM A 7.
A form to be used in decreasing formal letter writing, looking to the adjustment of
exceptions, as shown upon the reconcilements.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

28
FORM A 8.
Form of reconcilement to be retained by the auditing department and upon which will be
inscribed the reconciliation of balances with other Federal reserve agents as well as with
foreign banks.
FORM A 9.
To be used after the reconciliation of foreign accounts in instructing the foreign department to make entries covering commission charges, postage, etc.
FORM A 10.
Auditor's proof of general ledger, the figures for which will be assembled from a recapitulation of the different departmental proof sheets.
FORM A 11.
Suggested letterhead for the correspondence of the auditor.
FORM A 12.
Card record to be filed chronologically in a special examination file, and upon which will
be inscribed the teller or subject to be examined, the salient points to be covered, and the best
methods of procedure. This will enable the auditor to make systematic examinations at
irregular periods, owing to the fact that upon each day of examination the card will be replaced
in the file in the compartment of a future determined date.
FORM A 13.
To be used in requesting special reports from clerks who have made errors, either of
commission or omission.
In this connection, it is suggested that the secretary-treasurer and an assistant, or any two
officers who might be determined upon, meet with the auditor each business morning for the
purpose of examining the typewritten reports which will be the result of using Form A 13,
as in this way the designated officials of the bank will be kept in close touch with the
clerical force. Possible defects of system will be obtained in this way, which it would be difficult to develop in any other manner.
FORM A 14.
This will be used in reporting the results of departmental and other examinations.
There will be no cashier-check registers maintained in the department, inasmuch as this
work is a duplication of labor, and for the purposes of proof and control the same object will
be served by retaining the credit tickets executed at the same time the checks are drawn.
MAIL DEPARTMENT.
This department will receive and distribute all mail matter received between the hours of
9 a. m. and 2.30 p. m., and likewise it will be intrusted with the forwarding to member banks,
etc., of all mail matter emanating from the officers and the different departments.
• It is suggested that the equipment include steel racks with suitably sized compartments, in
which the mail for each member bank may be accumulated (in this way a saving of postage
will be made), an electric envelope opener, and an electric envelope sealer.
FILING DEPARTMENT.
The object of this department will be the collection and filing of all mail matter which has
accumulated during the day. There are no distinctive forms for the department, but it is suggested that the files be operated upon a plan of assembling into separate compartments, under
an alphabetical arrangement of member banks, such mail matter and carbon copies of transactions as may affect each individual bank.
The daily accumulation of ledger sheets from the bookkeeping department, liability slips
from the discount department, general ledger tickets, canceled checks from the auditing
department, and the proof sheets and block sheets of all departments will likewise be filed
and cared for by this department.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

29
MISCELLANEOUS.
The following described forms are general in character and can not be directly assigned to
any particular department:
FORM MISC 1.
A sample of check to be used in the different departments, the distinguishing red numbers
being indicative of the department originating the transaction. It is suggested that the discount, securities, accounting, and foreign-exchange departments be supplied with their own
cashier's checks to bear the distinctive numbers 1, 2, 3, and 4, respectively.
It will be noted that at the time the check is drawn a corresponding credit has also
been executed by means of a carbon impression.
An auditor's stub has been affixed to the check, which will protect the signing officer, who
upon affixing his signature will detach the stub and place it in a box situated upon his desk.
The auditing department will collect the stubs the following morning and check them to their
proper entries.
FORMS MISC 2 AND 3. •
These are sample credit and debit tickets, which -will be used by the departments in executing entries which have not been covered by other forms.
FORM MISC 4.
This is a form of debit ticket which will be used by clerks working after hours and to whom
a disbursement of a nominal sum will be made.
FORA( MISC 5.
This will be used in handling expense incidental to the forwarding or receiving of telegrams for account of member banks, etc., its explanation being:
Slip No. 1: Advice to member bank of the charge.
Slip No. 2: Debit to member bank's account.
Slip No. 3: Credit to "Provision for disbursements."
FORM MISC 6.
This will be used by all departments in forwarding registered mail matter to the mail
department, the purpose being that each department will obtain a signed receipt from the mail
department that the contents of the letters or parcels have been received by them.
FORM MISC 7.
A vault record to be used by the different departments and is designed to show the time
their particular compartments were closed, as well as the opening and closing of the main doors
of the vault.
FORM MISC 8.
This is a card to be used by the chief clerk, which is descriptive of applications for
employment, as well as an employee's record.
FORM MISC 9.
A sheet to be used by all departments in reporting to the chief clerk the time of closing
of the previous day, together with any debit or credit difference which might have occurred
in their general work. Provision has also been made for the reporting of absentees and the
reason for absence.
FORM MISC 10.
A form to be used by the chief clerk in reporting to the secretary-treasurer the time of
closing of all departments on the day prior, together with any debit or credit differences in
their work, names of absentees, and the reason for their absence. The data for this form will
Form MISC 9.
be supplied from the departmental record as outlined in
FORM MISC 11.
This will be used by the different departments in requisitioning supplies from the chief
clerk. The second sheet of the form is a carbon copy of the requisition, which will be retained
to check the departmental bill
by the department, in order that they may be in a position the
purchasing agent.
which will be rendered, say, semimonthly, by the chief clerk or


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

30
FORM MISC 12.
A card, upon which will be inscribed the signatures of those authorized in the member
banks to transact business with the Federal reserve banks.
FORM MISC 13.
A card, upon which will be inscribed the signatures of Government officers authorized to
transact business with the Federal reserve banks.
FEDERAL RESERVE AGENT.
As the Federal reserve agent will have relations with the Federal reserve bank and the
Comptroller of the Currency, and as he likewise will be under the necessity of making certain
reports to the Federal Reserve Board at Washington, all of the forms to be used by the agent
have been designed to cover his necessary bookkeeping entries as well as to provide for a concentrated advice of his operations to the Federal Reserve Board.
The forms of the agent are:
FORM FRA 1.
This is intended to cover the receipt by the Federal reserve agent of Federal reserve notes
from the Comptroller of the Currency, its explanation being—
Slip No. 1: Acknowledgment of receipt to the Comptroller of the Currency.
Slip No. 2: Credit "Federal reserve notes from Comptroller of Currency.'
Slip No. 3: Debit "Federal reserve notes on hand."
FORM FRA 2.
This will be used in forwarding mutilated Federal reserve notes to the Comptroller of the
Currency for destruction, its explanation being—
Slip No. 1: Notification to the comptroller of the forwarding of the notes.
Slip No. 2: To accompany the shipment.
Slip No. 3: Credit "Federal reserve notes on hand."
Slip No. 4: Debit "Federal reserve notes from Comptroller of the Currency."
FORM FRA 3.
This will be for use of the Federal reserve agent when issuing Federal reserve notes to
the Federal reserve bank, its explanation being—
Slip No. 1: Credit to "Federal reserve notes on hand."
Slip No. 2: Debit to "Federal reserve notes in circulation."
Slip No. 3: Debit "Rediscounts to secure Federal reserve notes."
Slip No. 4: Credit "Collateral received from Federal reserve bank, Chicago."
The advice to the Federal Reserve Board at Washington of the issuance of the currency
and its supporting collateral, having already been obtained by means of the continuous record,
as outlined in the discount section, it will not be necessary to provide this form with a slip
covering advice. It will, however, be noted that all of the necessary bookkeeping entries have
been written at one operation.
FORM FRA 4.
This will be used to cover the depositing of gold or other lawful money by the Federal
reserve bank with the Federal reserve agent to reduce the outstanding Federal reserve notes,
its explanation being—
Slip No. 1: Credit to "Provision for redemption of Federal reserve notes."
Slip No. 2: Debit "Gold and lawful money to retire Federal reserve notes."
FORM FRA 5.
This is a sample loose-leaf ledger sheet to be used by the Federal reserve agent in maintaining such controlling accounts as will be necessary.
It will be noted that a duplicate of the ledger sheet has been provided, with the thought
that this will serve the purpose of a concentrated daily statement to the Federal Reserve
Board of the condition of the Federal reserve agent's accounts.
For the relations of the Federal reserve agent with the Secretary of the Treasury, covering transactions in "Transit account," see Form B 5 of the bookkeeping department.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

31
SECRETARY OF THE TREASURY.

Under the proposed transit plan a certain portion of the gold reserve of the Federal
reserve banks will be concentrated at Washington with the Secretary of the Treasury, who
will maintain a record descriptive of the balance of the gold reserve of each Federal reserve
bank.
The entries in the different balances will be obtained from daily statements received from
the Federal reserve agents, who, as previously outlined, will verify the entries and authenticate the daily statements with their signature.
As it will be advisable for each Federal reserve bank to be acquainted daily with the
condition of their gold reserve at Washington, a form, in duplicate, has been provided which
will enable the Secretary to retain the top page as a ledger sheet, or permanent record, while
the duplicate will be forwarded to the Federal reserve banks.
SYSTEM IT.
In the development of this system every effort has been made to simplify and abridge the
clerical routine by the use of manifold forms where initial entries could be utilized for a
number of purposes; to organize the departments and procedure so that needless duplication
of work and records would be avoided; and finally, by the introduction of special departmental
settlement forms which would serve both for the departmental proof and the auditor's control,
to centralize in the audit division complete control over the daily operations.
A few typical examples will serve to illustrate the extent to which reentry of transactions
has been avoided by the use of manifold forms. In the loan department there will be prepared
at one writing the loan register entry and the liability ledger voucher from which the debit
entries in the liability ledgers will be checked and the credit entries posted upon maturity of
the loan. The form devised for use in connection with transfers to banks in other districts
will permit of the preparation at one writing of the credit or charge to the regional bank, the
office record, and the advice to be sent to the member bank affected. The member banks'
form for returning items unpaid provides for the preparation at one writing of the letter of
inclosure to the member bank to which the item is returned, authorization to recipient to credit
its regional bank, advice to the regional bank of the charge to its account for the item, authorization of the transfer of such charge to the regional bank in whose district the item originated,
and finally, the member bank's record of the return of the item and of its charge to the
regional bank from which received. In the bookkeeping department there will be prepared at
one writing the regional bank's ledger record of its transactions with the member banks and
the statements of account and ad.vices to be sent the member banks. While special attention
has been given to arranging these and all other forms accompanying this report so that they
can be used with any of the standard adding and typewriting machines now on the market, no
radical changes in the accounting system should be necessary were special machines utilized.
In the planning of the departments, the aim has been to restrict them to the smallest
number required for the expeditious and correct handling of the work, to group the departments and operations so that conflict of duties and consequent duplication of work would be
avoided, and finally, by compelling departments handling funds to account to another department for such funds, to have the departments themselves automatically check each other's
work. The extent to which duplication of work and records has been overcome by planning
the procedure so that the items will go direct from the department in which they originate to
the final recording department, is illustrated by the following:
Upon receipt, checks drawn by member banks on their regional banks will be sorted and
listed on proof sheets, the number of the member bank inserted, and both the proof sheets and
the checks forwarded to the bookkeeping department. The proof sheets will be delivered to
the journal clerks, who will post the totals shown thereon to the proper accounts in the member
bank's journal. The checks themselves will be utilized by the ledger clerks for preparing the
ledger record and the daily statement to be sent to the member banks. As the entries in the
journal will be compiled from the proof sheets and those on the ledger direct from the items,
and a daily comparison made of the two sets of balances, it is obvious that this procedure
affords every possible protection against errors—and moreover with only two entries of
the item.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

32
The following is a brief description of the proof system by means of which the audit
division will be able to maintain complete control over the work of the various departments whose transactions affect the figures in the daily statement of condition. Departmental
settlement sheets (Form A-2) have been provided on which the various departments—or
subdivisions of departments, in the case of the clearings and transit departments—will be
required to balance their work independently but along uniform lines. The upper section of
this form is ruled for entry of the debits and credits of the departments to the member banks,
Government deposits, general, and other accounts, and the lower section for entry of the interdepartmental debits and credits in respect of items delivered to or received from them, and
such other departmental transactions as may arise. Each department receiving items from
another department being required to enter them on its settlement sheet to the credit of the
department charging them, it is apparent that for each debit and credit in a certain department there should be a corresponding credit or debit in some other department. At the close
of business each day the totals of the departmental settlement sheets are to be assembled by the
auditor on the general proof sheet. This general proof sheet will at once reveal any errors in
the work of the different departments and will serve to centralize in the audit division complete
control over the daily operations of the bank by furnishing the means for tracing and verifying
all interdepartmental entries. Furthermore, this control will be obtained without unnecessary
relisting, for the items will go direct from the various tellers' departments to the bookkeeping
department.
CHIEF CLERK.
The chief clerk will be the intermediary between the officers and the clerks engaged in the
banking division. All instructions of the officers affecting the clerks in this division are to be
issued through the chief clerk, who should be held responsible for the fulfillment of such
instructions, and also for the prompt and efficient conduct of the routine work of the division
and for the general discipline of the clerks under his jurisdiction.
Subject to the approval of the officer in charge, the chief clerk should arrange for the
filling of temporary vacancies occasioned by illness, vacations, etc., and for the purchase of
stationery and supplies.
LOAN AND INVESTMENT SECURITIES DEPARTMENTS.
The loan and investment securities departments will comprise the rediscounts department, the open market purchases department, and the investment securities department.
Explanatory of the functions of these departments and the records to be maintained therein,
we submit the following:
REDISCOUNTS AND OPEN-MARKET PURCHASES DEPARTMENT.
The rediscounts and open-market purchases departments will be responsible for the
proper handling and custody of the notes rediscounted for member banks and the paper
purchased in the open market, and also for the maintenance of the books and forms required
for recording the transactions and collecting such of the loans as are payable out of town.
Briefly, the duties of these departments will include the examination, as to their regularity, of
the notes, drafts, etc., received; the calculation of the interest, discount, and maturities; the
entering of the paper in the discount registers, maturity records, and liability ledgers; the
filing of the paper pending collection, which is to be effected through member banks in the
event of the paper being payable out of town, or through the note teller's department if payable
in the city in which the regional bank is situated; and the posting of the credits for payments
in the liability ledgers.
The forms to be used in the rediscounts and open-market purchases departments being
either similar or common to both, the two departments will be dealt with as a unit in the
ensuing description of the forms required.
---This form when executed will be a certificate reciting
Authority to rediscount (B-1).
that the board of directors of the member hank has authorized certain of the officers to rediscount with, sell to, or borrow from their regional bank. A copy of this form is to be executed
by each member bank.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

33
Application for loan (B-2).—An application is to be executed on this form by the member
bank and submitted to the regional bank with each schedule of notes, drafts, and bills of
exchange offered for rediscount.
Schedule of notes, drafts, and bills of exchange offered for rediscount (B-3).—This
form, after completion by the member bank, is to be forwarded to the regional bank together
with the application for loan, Form B-2.
In order that the regional bank may have sufficient details of the paper offered for rediscount, provision has been made for inclusion in this schedule of the number, name, and location
of the offering bank; the name, address, and business of the maker or drawer; the acceptor,
indorser, or collateral; where payable; date of note; due date; discount rate, and face
amount of note.
Register of rediscounts (B-4); register of open-market purchases (B-5).—As the notes,
drafts, or bills are received from the member banks for rediscount, or purchased in the open
market, they are to be entered directly from the notes in the respective registers. These
registers are arranged so as to show for each item, the consecutive index number; the date
rediscounted or purchased; date of note; due date; time; rate of discount; amount of note;
discount; proceeds; for whom rediscounted or from whom purchased; the maker or drawer;
the acceptor, endorser, or collateral, and where payable. The"a"sections of these forms will
be classified as to city and country items, and thereafter filed in chronological order according
to due dates, while the"b"sections will be placed in binders and will constitute the discount
registers proper.
Credit tickets for the proceeds of the notes, etc., rediscounted or purchased in the open
market will be prepared at intervals during the day and forwarded to the bookkeeping
department.
At the close of business, tickets covering the day's totals of the rediscounts and openmarket purchases, and the discount received on each class of paper, as shown by the respective
registers, are to be prepared and forwarded to the bookkeeping department.
City maturity record (B-6). country maturity record (B-7).—After the notes, drafts,
etc., have been recorded in the discount registers, they are to be classified as to "city" and
"country" items and entered in the proper maturity record under the respective due dates.
As the tickets prepared at the time the entries are made in the discount registers will be filed
in chronological order according to due dates and will be available for reference, it will be
necessary to enter in the city maturity record only the index number and the amount of the
note, and in the country maturity record only the index number, the amount of the note, and
where payable. For such of the items as are sent to member banks for collection, the date on
which the receipt of the item is acknowledged by the collecting bank is to be subsequently
added from Form B-13.
At the close of business each day, tickets for the totals of the respective maturities are to
be prepared and forwarded to the general bookkeeper for credit to the controlling accounts.
The maturity records are to be footed weekly, and from the footings so obtained will be
compiled the totals for the 30-day, 60-day, and 90-day paper rediscounted or purchased by
the regional bank.
Notes or other items rediscounted for member banks and not paid at maturity are to be
charged to the account of the member bank for which rediscounted and returned. Paper
bought in the open market not paid at maturity is to be charged to an account entitled "Past
due paper," pending payment or other disposition.
Member banks' liability ledger (B-8).—This form is designed to provide a detailed
record of the contingent liabilities of each member bank to the regional bank.
A separate sheet will be opened for each member bank on which will be recorded in the
"rediscounts" section, the date on which the item was rediscounted; its index number; the
maker or drawer; the acceptor or indorser; the due date; the discount rate; and the rediscount
amount. When paid, the date and amount of the payment will be entered in the "credits"
columns and the amount in the"balance"column reduced accordingly. In the section designated "other liability" will be entered the details of the contingent liability of the member
banks as acceptors or indorsers on paper purchased in the open market.
The debit entries are to be posted direct from the notes and proved by comparison with the
tickets prepared at the time the entries are made in the discount registers.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

34
Liability ledger—rediscounts and open market purchases (B-9).—In this record will be
entered under the names of the makers or acceptors their liability to the regional bank in respect of notes rediscounted by member banks and paper purchased in the open market.
In addition to the name, address, business, and rating of the borrower there will be
entered in this ledger the date on which the note, draft, etc., was rediscounted or purchased;
the index number from whom received; the indorsers; the due date, and the amount of the
liability, subdivided as to rediscounts and open market purchases. When paid, the date and
amount of the payment will be entered in the credits" columns and the amount in the "balance"
column reduced accordingly.
Should the notes, drafts, etc., be later hypothecated with the Federal reserve agent, this
information is to be entered in the "deposited' column on the line containing the description
of the paper. When returned by the Federal reserve agent, the date is to be entered in the
"withdrawn" column and the amount in the "balance" column reduced accordingly. This balance can be very readily proved by listing the open items.
From the foregoing it will be seen that this ledger will show both the extent of the borrower's liability and the location of the paper—that is, whether it is in the possession of the
regional bank or whether it is held by the Federal reserve agent as collateral.
In the event of paper being sold by the regional bank prior to maturity, the date and
amount would be posted in the "credits" column and the name of the purchaser recorded in the
"sold to" column.
The debit entries are to be posted direct from the notes and proved by comparison with
the tickets prepared at the time the entries are made in the discount registers.
Contingent liability record rediscounts and open market purchases (B-10).—Separate
sheets of this form are to be used for each indorser on paper rediscounted or purchased in the
open market. The form will be headed with the name of the indorser, his address, business
and financial rating, and will show for each item the date on which it was rediscounted or
purchased; the index number; the maker or acceptor; the liability amount; the credits for
payments; and the balance—representing the net contingent liability.
The debit entries are to be posted direct from the notes and proved by comparison with
the tickets prepared at the time the entries are made in the discount registers.
TVeekly report of borrower's liability (B-11).—It is through the medium of this form,
which is to be prepared weekly by the regional banks from the liability ledgers, that the Federal Reserve Board will obtain the data it requires as to the extent and nature of the liabilities
of the customers of the member banks to the regional banks and the amount of the paper
hypothecated by the regional banks with the Federal reserve agent. Two copies are to be
made, one of which is to be forwarded to the board and the other retained by the regional bank.
So as to minimize the amount of work involved in the preparation of this report, it is suggested that lines of less than, say,$10,000 be excluded.
Being designed on the unit plan, it will only be necessary for the Federal Reserve Board
to assemble in alphabetical order, according to makers or acceptors, the reports received from
the various regional banks in order to ascertain the aggregate liability of each individual borrower for notes rediscounted or purchased by the regional banks.
Weekly report of member banks' credit balances and rediscounts (B-12).—This form is
somewhat similar to Form B-11, except that it is intended to show, for each member bank, its
average credit balance with the regional bank, the amount of notes rediscounted by it with the
regional bank, and the contingent liability of the member bank in respect of acceptances or
indorsements on paper purchased by the regional bank in the open market.
The data required for the completion of this form will be obtained from the member
bank's liability ledger, Form B-8,and from the member bank's ledger, Form" G-4a."
Collection form for notes owned payable in discounting bank's district (B-13).—The several copies of this form will serve respectively as a letter of inclosure, receiving bank's acknowledgement, charge ticket, and office record of notes owned, which are sent to a member
bank for collection. It is to be prepared in quadruplicate and the following disposition made
of the various copies:
Original: To be sent to collecting bank with item, as a letter of inclosure.
Duplicate: To be sent with item to collecting bank, by which it will be signed and returned
to regional bank. Upon receipt by regional bank,the date of acknowledgement is to be entered
on the country maturity record, Form B-7, and duplicate filed in correspondence file.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

35
Triplicate: To be filed by regional bank in note file until maturity, then turned over to the
note teller's department. Thereafter the collecting bank will be charged with the amount of
the item and triplicate sent forward as an advice of such charge.
Quadruplicate: To be retained by the regional bank in numerical order as a permanent
record.
Collection form for notes owned payable in other districts (B-14).—This form is to be
used in forwarding to other regional banks notes owned which are payable outside the district
of the forwarding regional bank; it consists of an original to be sent to the collecting regional
bank with the items and a duplicate to be retained by the forwarding bank.
On the due date of the items, the duplicate, or debit sheet, is to be turned over to the note
teller's department and used as a charge against the collecting regional bank.
Record of notes hypothecated with Federal reserve agent (B-15).—This form, which is
to be prepared in duplicate, and is to accompany each lot of notes turned over to the Federal
reserve agent as collateral for Federal reserve notes issued, provides for the recording of the
serial numbers given the notes by the Federal reserve agent and by the regional bank, and the
amounts of the nbtes hypothecated.
Upon delivery of the notes, the original of this form is to be signed by a representative of
the Federal reserve agent as an acknowledgment of the receipt of the notes, and then returned
to the regional bank. The duplicate is to be retained by the Federal reserve agent as his record
of the transaction.
When the notes are returned to the regional bank by the Federal reserve agent, the date
on which they are so returned is to be inserted on both copies; consequently both the Federal
reserve agent and the regional bank will be in possession of a complete record of the notes
pledged as collateral with the agent and the disposition made of the notes.
Record of collateral withdrawn from Federal reserve agent (B-16).—Aside from the fact
that it is to be used in withdrawing notes deposited as collateral, this form is somewhat similar
to Form B-15. In the case of Form B-16, however, the original is to be retained by the regional bank, while the duplicate is to be signed by the regional bank as an acknowledgment of
the receipt of the notes, and thereafter returned to the Federal reserve agent.
Collateral card (II-17).—The particulars to be recorded on this form will include the
name and address of the borrower; the serial number, amount, date, and other details of the
loan; and the quantity, description and market value of the collateral. Upon payment of the
loan and surrender of the collateral; the borrower or his representative is to sign the collateral
card in acknowledgment of the receipt of the securities described thereon.
Record of securities held as collateral (B-13).—This form will be used for classifying
according to issues the securities pledged as collateral. A sheet will be reserved for each issue
on which will be entered the name and description of the security, the date pledged or surrendered, the number and name of the loan upon which pledged, the number of bonds or shares
pledged or surrendered, and the total par value of the securities pledged, surrendered, and on
hand.
Accruals.—To insure the accuracy of the published statements of condition and facilitate
the verification of the interest earned on rediscounts and paper purchased in the open market,
it is essential that the regional banks should have an accrual system which will permit of the
ascertainment of the actual earnings from this source at daily or weekly intervals. By the
adoption of the following procedure the amount of interest earned on loans outstanding could
be determined daily with very little difficulty:
At the close of business each day the total of the interest collected as shown by the "discount" columns in the register of rediscounts, Form B-4, and the register of open market purchases, Form B-5,should be credited to the general ledger account entitled "unearned interest."
Simultaneously, a charge should be made to this account—the proper earnings account being
concurrently credited—for one day's interest on the total of the loans outstanding. To facilitate the computation of this charge, a columnar book containing debit, credit, and balance
columns for the loans at each interest rate should be provided, in which should be entered the
net increases or decreases in the loans made or paid each day and the revised totals of the loans
outstanding at the various interest rates.
Twice a year the balance in the unearned interest account should be proved by listing in
a columnar book, under the respective interest rates, the amount and unexpired days for each
loan outstanding, and computing therefrom the total interest unearned.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

36
INVESTMENT SECURITIES DEPARTMENT.
To this department will be assigned the custody of the bonds and other securities in which
the regional bank has invested and all matters relating to the recording of the purchases, sales,
and maturities of such securities, the receiving of securities purchased, and the delivery or
redemption of securities sold or matured.
Investment register (B-19).
---,Separate sheets of this register are to be used for each issue
of securities acquired. These sheets will be headed with the name and description of the
security, the date of maturity, the rate of interest, and where such interest is payable. For the
recording of the individual transactions, columns are provided in which will be entered the
date purchased or sold, the basis and percentage prices; the number, par value, and cost of the
bonds, notes, etc., purchased; the number, par value, and selling price or redemption value of
the securities sold or redeemed, the balance on hand, and the profit or loss on sales. The reverse of this form is to be utilized for recording the serial numbers of the securities purchased,
sold, and redeemed.
TELLERS' DEPARTMENTS.
The following is a list of the tellers' departments:
Paying teller's department.
Receiving teller's department.
Note teller's department.
Transfer department.
Clearings department.
Collection department.
The activities of these departments will be confined almost entirely to the receiving and
disbursing of cash and the collection or transmittal of items turned over to them. They will,
in consequence, require no permanent records of importance except the proof and settlement
sheets, on which will be listed, in amounts only, the items passing through the departments.
PAYING TELLER'S DEPARTMENT.
The paying teller will attend to all payments made over the counter, the certifying of
checks, clearing-house settlements, and other duties of a similar nature. He will also be
required to pass on the authenticity of the signatures on the drafts, checks, etc., received in
his department.
It is proposed also that the paying teller shall supervise the shipping of currency to
member banks and the forwarding of mutilated currency for redemption. Should the shipments of currency to member banks prove to be very numerous, however, a special department
might be created to take charge of such shipments.
The paying teller should be responsible only for the counter cash, as it is suggested that
the reserve cash be placed under the joint control of two officers.
Stop-payment notice (C-1).—This form will be used by the paying teller in acknowledging receipt of a member bank's request to stop payment of a draft drawn by it on the
,
regional bank and in advisinc the bookkeeping department of such stop payment. The three
copies to be prepared will be utilized as follows:
Original: To be sent to member bank at whose request payment was stopped as an acknowledgment of the receipt of its instructions.
Duplicate: To be delivered to the bookkeeping department and held there pending presentation of draft. Should the request to stop payment be canceled later on, the duplicate is
to be so marked and then filed.
Triplicate: After receipt of duplicate has been acknowledged, this copy is to be filed in
the paying teller's department.
--This form is designed to provide a suitable record of checks
Certification record (C-2).
certified for account of member banks.
The original, or certification debit, is to be sent to the member bank, together with the
daily statement. The duplicate, which will constitute the regional bank's record of the
transaction, will be stamped "paid" as the originals are redeemed. This record could be
prepared in either pad or book form.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

37
At the close of business a credit ticket for the total of the day's certifications is to be
prepared and forwarded to the general bookkeeper. The certified checks paid each day will
be listed on bookkeeping department Form G-6, which is intended to support the debits to
the controlling account. The total of the checks issued but not paid should equal the balance
in the general ledger controlling account for certified checks.
It may be explained at this point that the certifications would probably be few in number,
and in most cases would be for the purpose of establishing the genuineness of the signatures
on drafts.
Notice of currency shipments (0-3).—The original of this form will be used both as a
charge ticket and as an advice to the member bank that the shipment has gone forward; the
duplicate will be retained by the regional bank and filed with the member bank's requisition
for the currency.
RECEIVING TELLER'S DEPARTMENT.

The chief duties of the receiving teller will be to accept the deposits made by local member
banks and to receive shipments of currency forwarded by out-of-town member banks. He
will, in addition, maintain the cashier's check register, and attend to such other duties as may
be assigned him.
All cash on hand in this department at the close of business each day is to be surrendered
to the paying teller.
Deposit ticket (C-4).—A form sin.iilar to this is to be used by the member banks when
depositing currency or coin in their regional bank.
Cashier's checks register (0-5).—This form is intended to provide a detailed record of
the cashier's checks issued in settlement of balances, notes and bills purchased, and other
necessary transactions.
The checks are to be recorded in the register in numerical order, the date, payee, and
amount being entered, as well as the account for which the payment was made.
At the close of business the total of the day's entries in the "amount" column is to be
extended in the "daily total" column and the general bookkeeper supplied with a credit ticket
for the amount of the checks issued during the day. The cashier's checks paid each day will
be listed on bookkeeping department Form G-7, which will support the debits to the controlling
account.
When the checks are paid, the date is to be 'entered in the last column. The total of the
checks issued but not paid as shown by the register should equal the balance in the general
ledger controlling account for cashier's checks.
NOTE TELLER'S DEPARTMENT.

This department will be the medium through which all payments made on account of
loans, interest, etc., will be received. From the loan and collection departments will be received
the daily maturities, and from the other departments, returns and other items payable within
the city. The proceeds of the items collected by this department are to be distributed and
charged to the proper departments, all cash being turned over to the paying teller's department. The messengers will be under the jurisdiction of the note teller.
Member banks' form for returning items unpaid (0-6).—This form will be used by the
member banks in returning unpaid items direct to the member banks in which they were
deposited and in charging back such items to the regional bank from which they were received.
The four copies to be made of this form are to be disposed of as follows: .
Original: To be inclosed with the item, which is to be returned direct to the member bank
in which it was deposited.
Duplicate: To be sent to the regional bank from which the member bank received the
item, as advice that item has been returned direct and charged to the account of the regional
bank to which advice is sent. The regional bank will utilize this ticket as a credit to the
account of the member bank returning the item.
Triplicate: To accompany the duplicate. If the item originated in another district, the
triplicate will be utilized by the regional bank to which it is sent in preparing Form C-7,
statement of returned items.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

38
Quadruplicate: To be retained by the member bank returning the item as authority for
its charge to the account of the regional bank from which the item was received.
Regional bank's statement of returned items (0-7).—The data required to complete this
form, which is to be used in charging back to other regional banks items returned to their
member banks, will be obtained from Form C-6. The original is to be sent to the regional
bank from which the items were received as an advice of the charge to its account. It will be
used by the recipient as authority"for crediting the account of the regional bank from which
received, and charging the accounts of the member banks to which the items have been returned.
The duplicate will be retained as an office record.
Debit ticket for returned items (0-8).—The data required to complete this form will be
obtained from the member banks' form for returning items unpaid (C-6), or from the regional
bank's statement of returned items (C-7), depending on whether the member bank to which
the item was returned is situated in the same or in another district.
After the account of the member bank has been charged, this form is to be sent to the
member bank as an advice of such charge.
TRANSFER DEPARTMENT.

It is intended that this department shall handle all matters relating to the transfer of
funds from one member bank to another member bank.
Transfer ticket (0-9).—This form will be used only when both banks are situated in the
same district. The three copies to be prepared are to be utilized as follows:
Original: To be used as a credit ticket and then sent to the member bank to which the
transfer is made, as an advice.
Duplicate: To be used as a debit ticket and then sent to the inember bank requesting the
transfer, as an advice.
Triplicate: To be retained and filed after confirmation has been received from the member
bank requesting the transfer.
--10).
Statement and debit ticket for telegraphic transfers to banks in other districts (0
The several sections of this form will be used respectively as a confirmation of telegraphic
transfers to member banks in other districts and as a charge to the member bank requesting the
transfer.
The original of the statement section (b) is to be sent to the regional bank to which the
transfers are made as a confirmation of the transfers and advice of credit; the duplicate is to
be retained as an office record. The debit ticket section (a) is to be sent to the member bank
requesting the transfer, as an advice of the charge.
Statement and credit ticket for telegraphic transfers from banks in other districts
(0-11).—Except that it will be completed by the regional bank to which the transfers were
made,this form will be used in somewhat the same manner as Form C-10.
The original of the statement section of this form (b) is to be sent to the regional bank at
whose request the transfers were made as a confirmation of the transfers and advice of charge;
the duplicate is to be retained as an office record. The credit ticket section (a) is to be sent to
the member bank to which the transfer was made, as an advice of the credit.
Statement and debit ticket for correspondence transfers to banks in other districts
(C-12).—As indicated by its title, this form is to be used only when the transfers are to be
effected by correspondence.
The original of the statement section (b) is to be sent to the regional bank to which the
transfers are made as authorization of transfer and advice of credit for the amount of such
transfers; the duplicate is to be retained as an office record. The debit ticket section (a) is to
be sent to the member bank requesting the transfer, as an advice of the charge.
Correspondence transfer credit ticket (0-13).—This form will be used by the regional
bank when crediting its member banks for transfers made to them by banks situated in other
districts. It will be prepared from the statement of correspondence transfers, Form C-12,
and is intended to serve both as a credit ticket and as an advice to the member bank to which
the transfer is made.
CLEARINGS DEPARTMENT.

The in-clearings and out-clearings divisions of this department will handle, respectively,
the checks received from the clearing house and the checks sent to the clearing house.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

39
The records of this department will be limited to proof and settlement sheets containing
a record of the amounts of the checks received from and sent to the various banks.
It is intended that the clearings department shall sort the checks received according to the
ledgers to which they apply and, so far as possible, according to the accounts in these ledgers.
Thereafter the proof sheets are to be delivered to the bookkeeping department, where they
will be utilized in posting the debits to the accounts of the member banks and government departments. The items also are to be sent to the bookkeeping department for entry in the ledger
and daily statement. As totals only will be posted in the journals and the items themselves
will be utilized in preparing the regional bank's record of the charge and the daily statements,
all relisting and other duplication of work will be avoided.
COLLECTION DEPARTMENT.
In addition to being the custodian of all notes received from other regional banks for
collection, this department will have charge of the recording and transmitting of country
items collectible through member banks. Items payable locally are to be delivered to the note
teller's department at maturity for collection.
Collection form for notes sent out by collection department ((1-74).—The several copies
of this form will serve respectively as a letter of inclosure, receiving bank's acknowledgment,
charge ticket, and office record. Four copies are to be made and disposition made of them as
follows:
Original: To be sent with item, as a letter of inclosure, to collecting bank.
:ollecting bank, by which it is to be
Duplicate: To be sent with item and original to ,
signed and returned to regional bank.
Triplicate: To be filed by regional bank in note file until maturity, and then turned over
to the note teller's department, where it will be utilized as a debit ticket for the charge to the
account of the collecting bank, and then sent forward with the daily statement as an advice
of such charge.
Quadruplicate: To be retained by the regional bank in numerical order as a permanent
record.
TRANSIT DEPARTMENT.
The duties of the transit department will be confined to the receiving and transmitting
of checks, drafts, etc., for member banks. It is intended that the incoming and outgoing mail
shall be handled by separate subdepartments and that the work of each shall be proved independently.
Aside from the charge letter for outgoing items, the records originating in this department will be limited to proof and settlement sheets.
Member banks' remittance letter (D-1).—While it is highly desirable that the member
banks use a standard form for listing the checks deposited with their regional bank, their
regular stock can be utilized if it allows for the entering of the place where the checks are
payable. Whatever form is used, however two copies are to be prepared, one of which will
'
be forwarded with the items to the regional bank and the other retained by the member bank.
The items are to be assorted and thereafter listed on separate letters according to the
following classification:
Items drawn on the regional bank in which they are deposited.
Items payable in the city in which the depositing bank's regional bank is situated.
Items payable in the same reserve district, but outside the city in which the regional bank
situated—one letter for each State or other subdivision adopted.
is
Items payable in other reserve districts--one letter for "inside" items and another for
"outside" items. The "outside" items, however, are to be classified and listed according to the
States in which they are payable, or other subdivisions adopted.
Member banks' recapitulation of deposits with regional bank (D-2).—This form is to be
used by the member banks for summarizing and classifying the items deposited according to
the transit time schedule.
On the books of the member banks the total amount of the deposits will be charged immediately to a transit account, to which credits will be made daily for the amounts due to be
collected on that day, the account with the regional bank being correspondingly charged.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

40
Upon receipt of the items by the regional bank, the account of the member bank will
be
credited immediately with the total amount of the deposit, regardless of the
time required for
the collection of such of the items as are payable out of town. In order, however,
that
regional bank may know the actual free balances, a memorandum column has been providedthe
in
the member banks' journal, Form G-1, in which the credits will be analyzed under
the dates on
which they are due to be collected.
For further information relative to the handling of the transit items reference
is
to the section of the committee's detailed report devoted to transit department matters. made
Regional banks' list of items drawn on member banks (D-3).—This form will
be
by the regional banks when transmitting checks to their member banks. The original used
is to
accompany the items and the duplicate retained as an office record.
FOREIGN EXCHANGE DEPARTMENT.
Under the terms of the Federal reserve act, the foreign exchange department will be
empowered to purchase and sell bills of exchange, demand and time drafts, cable
transfers, and
other classes of commercial paper and securities; also gold coin, bullion, etc. To
provide
the proper recording of these transactions, books and forms will be required as follows: for
Cash
books. draft and remittance registers, liability records, a journal, a correspondents'
ledger, and
a general ledger in which will be carried the controlling accounts of the department
and from
which the daily statement of condition will be compiled.
Clash receipts book (F-1).—This book will be kept by the receiving clerk of the
department, and is intended to contain a complete record of all transactions involving the
receipt of
cash or checks.
In the columns reserved for the "date," "particulars," and "debits" will be
respectively, the date and a brief explanation of the transaction and the amount entered,
received. The"credits"columns are to be utilized for classifying the entries in the of cash
"debits"
section according to the accounts to which such receipts should be credited.
At the close of business each day the columns in both the"debits" and "
are to be totaled and proved, tickets being prepared thereafter for the day's credits"sections
receipts of each
currency, and for the total credits applicable to each of the accounts enumerated
in
"credits" section. These tickets, after approval by the proper officer, are to be deliveredthe
to
the general bookkeeper of the department for entry.
ash disbursements book (F-2).—In this book, which is to be kept by the disbursing clerk
of the department, will be entered the details of the cash disbursed and the checks issued for
bills of exchange and cable transfers purchased, and for other purposes.
All entries are to be supported by properly approved memoranda. In every case such
memoranda should bear the initials of the clerks responsible for the calculation and verification of the rates and conversions, as well as the initials of the approving officer.
Except as regards the nature of the transactions to be recorded therein, the cash disbursements book is to be used in precisely the same manner as the cash receipts book.
Draft advice and record (F-3).—The record of drafts drawn consists of four sections,
which are to be prepared at one writing and utilized as follows:
Section "a," original advice: To be sent by first steamer to the bank on which the draft is
drawn.
Section "b," duplicate advice: To be sent by second steamer to the bank on which the draft
is drawn.
Section "c," to be filed with the correspondence relating to the bank on which the draft is
drawn.
Section "d," to be inserted in a suitable binder and preserved as the department's record
of drafts drawn.
All four sections, when completed, will show the name tind address of the bank on which
the draft is drawn, the date and number of the draft, to whose order it is drawn, the tenor,
the amount, and the names of the steamers by which the drafts and advices are being forwarded. On sections "c" and"d" will be entered, in addition, the rate, the amount in United
States currency, and to whom the draft was sold.
At the close of business each day tickets are to be prepared for the daily totals of the
drafts drawn, which tickets, after approval, are to be delivered to the general bookkeeper of
the department for entry.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

41
Remittance advice and record (F—.4).—This also is a manifold form consisting of four sections, which are to be utilized as follows:
Section "a," original advice: To be sent by first steamer to the correspondent.
Section "b," duplicate advice: To be sent by second steamer to correspondent.
Section "c," to be used as a voucher for the debit postings to the liability records, and then
filed in chronological order.
Section "d," to be inserted in a suitable binder and preserved as the department's record
of remittances to its correspondents.
Upon completion, all four sections will show the name and address of the correspondent to
which the bill is remitted; the names of the steamers by which the bills and advices will be
forwarded; the date; index number; the names of the drawer, indorser, and drawee; the tenor
and amount of the bill; a description of documents accompanying it, and the terms under
which such documents are to be surrendered. The office copies—sections"c" and "d "—will
contain, in addition to the foregoing data, the rate, amount in United States currency, date of
credits, and remarks if necessary.
At the close of business each day tickets are to be prepared for the daily totals of the
remittances, which tickets, after approval, are to be delivered to the general bookkeeper of the
department for entry.
Customers' liability record (Pi-5).—ln this record will be entered under the names of the
customers their contingent liability to the department as drawers, indorsers, and guarantors.
The particulars to be entered will include the name, address, business, and rating of the
customer, the date and number of the item, the names of the drawer and drawee, the tenor, the
approximate due date, and the liability amount. Provision being made for entry in separate
columns of the liability of the customer as drawer, as indorser, and as guarantor, this record
will, of course, show the nature of the customer's liability, as well as the aggregate amount.
The debit entries will be posted from section "c" of the remittance advice and record,
Form F-4.
As the items mature and are paid or otherwise disposed of, the customer should be credited
in the proper columns, and the amounts in the"balance" columns reduced accordingly.
Payers' liability ledger (F-6).—This ledger will contain the details of the payers liability
to the department, both as drawees and as acceptors.
The ledger sheets will be headed with the name, address, business, and rating of the
payer, and will show for each item the date, the index number, the name of the customer, the
tenor, the approximate due date, and the. liability amount. Separate columns being provided
for the entry of the liability as drawee and as acceptor, the extent of the payers' liability
under each of these classifications is already ascertainable.
The debit entries will be posted from section "C" of the remittance advice and record,
Form F-4.
As the items mature and are paid, the payments should be posted in the proper credit
column and the amount in the"balance"columns reduced accordingly.
Journal (F-7).—Transfers from one account to another, adjustments occasioned by interest charges, and other transactions not originating in the cash books and the draft and remittance registers, are to be entered in the journal. Being columnar in arrangement, the posting
of individual items to the ledgers will be necessary only in connection with the miscellaneous
items appearing in the column head "sundry accounts.'f.
All entries are to be supported by properly approved tickets.
Correspondents' ledger (F-8).—in this ledger will be carried the accounts of the foreign
banks selected as correspondents or agents.
All entries other than those posted direct from the draft and remittance records are to be
supported by self-explanatory and properly approved tickets.
The particulars to be recorded include the date and a brief description of the transaction,
the index number assigned the item, the value date, and the amount. Both the foreign amount
and its equivalent in dollars are to be entered. The balance is to be carried in the dollar
amount only, as the foreign currency balance would not be needed except when the account is
to be reconciled. As advices for charges are received from the foreign correspondents, the
amounts of such charges are to be entered in the"charges"column opposite the item to which
they apply, after which the net amounts are to be extended in the column so headed.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

42
The auditor will be required to attend to the reconciliation of the statements received from
correspondents. Form Y-3 has been provided for use in this connection.
General ledger (F-9).—The general ledger of the foreign exchange department is to be a
bound book and will contain all of the control accounts relating to the resources and liabilities
of the foreign exchange department, and the earnings, expenses, and profit and loss accounts.
All entries are to be supported by properly approved tickets.
Daily statement book (F-10).—At the close of business each day the general ledger balances
are to be entered in this book, which will thus constitute a daily record of the resources and
liabilities of the department.
BOOKKEEPING DEPARTMENT.
The bookkeeping department will have charge of the accounts of the member banks and
Government departments, also the general accounts. In addition, it will be responsible for
the preparation of the daily statement of condition and the monthly statement of earnings and
expenses and for the maintenance of the analytical records of earnings and expenses.
Member banks' journal (G-1).—This journal will be used for assembling the daily debits
and credits and determining the balances of the member banks at the close of each day's
business.
In the "debit" columns will be posted the daily charges to each account as shown by
the proof sheets prepared by the clearings, transit, and °the' departments. In the column
headed "credits to ledger" will be posted the total of the credit letters received from the
member banks. At the close of business each day the balances are to be extended and proved.
In order that the free balance in each account may be readily ascertained, we have included
under the heading "credits" a memorandum column entitled "credits in transit," in which
the subtotals of the credit letters are to be distributed according to the dates on which the
items are due to be collected.
While this style of journal would not be suitable for a bank having a large number of
accounts, many of which are inactive, it is especially desirable in the case of the regional
banks, where there will be a comparatively small number of accounts, all of which will
probably be very active.
In addition to serving as a medium for assembling the daily debits and credits, the member banks' journal will furnish a check on the entries in the member banks' ledger—the entries
in the journal being compiled from the proof sheets and those in the ledger direct from
the
items.
Government deposits journal (G-2).—Except that it does not contain a column for credits
in transit, this form is very similar in arrangement to the member banks' journal, and is to
be
used in the same manner.
General journal (G-3).—By the use of this journal for assembling the daily debits and
credits to the general accounts, the daily statement will be completed simultaneously with
balancing of the accounts. The daily statement could, of course, be prepared direct from the
the
general ledger, but in that event it would be far more difficult to locate any differences
which
might arise.
. Member bank's ledger and daily statement (G-4a).—This form will be prepared in duplicate direct from the items. After the day's transactions have been entered, the original—the
ledger sheet—is to be inserted in a suitable binder for use as the regional bank's record, and
the duplicate forwarded to the member bank concerned for use as an account current
and
advice of the charges and credits made by the regional bank.
An explanation of the key letters to be used in the preparation of the ledger accounts and
statements of the member banks will be found in a subsequent section of this report.
Federal reserve bank's ledger and daily statement (G-.0).—Except that it will be
for recording transactions with other regional banks, this form is very similar to the reserved
member
bank's ledger and daily statement, and is to be used in precisely the same manner.
General ledger (0-5).—This is to be a bound book and will contain an account for
each
item appearing in the statement of condition. All entries must be supported by properly
authorized debit and credit tickets.
Record of certified checks paid (G-6)—Record of cashier's checks paid (G-7).—T
forms will be used for listing, by numbers and amounts, the certified checks and cashier's hese
checks


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

43
paid each day. The daily totals of the checks paid, as recorded on these forms, are intended
to support the debits to the general ledger controlling accounts for certified cheeks and cashier's
checks.
Expense voucher (G-8).—This consists of a check and statement to be forwarded to the
creditor and a carbon duplicate to be attached to and filed with the relative invoice. Before
signing the check section the cashier should see that the duplicate bears the approval of the
proper persons.
Expense distribution record (G-9).—This form will be used for distributing under appropriate headings the charges to expense account. Separate columns are provided for salaries,
directors' fees, legal services, postage, printing and stationery, light and water, rent, freight
and express, insurance and bonds, telephone and telegraph, taxes, etc. The details of the
expenses incurred will be obtained from the debit tickets covering cash disbursed by the paying
teller or from the expense voucher in the event of the payment being made by check.
A somewhat similar form could be used for analyzing the earnings.
Comparative statement of earnings and expenses (G-10).—This statement, which is to be
prepared monthly, will show in comparative form the details of the earnings and expenses
for the current month and the fiscal period to date as well as the increases or decreases over the
previous month and period.
Most of the data required for the completion of this statement will be obtainable from
the general ledger and the expense distribution record.
Statement of condition (G-11).—This is to be prepared daily from the general journal
and supporting records.
Suggested condensed gross statement for report to Federal Reserve Board (G-12)—Suggested condensed net statement for report to Federal Reserve Board (G-13).—These are
alternative forms. Whichever is adopted will be compiled from the daily statement of condition(Form G-11).
KEY LETTERS TO BE USED IN THE PREPARATION OF THE LEDGER ACCOUNTS AND DAILY STATEMENTS.
In order to minimize the clerical work involved in the preparation of the ledger accounts
and the statements for member banks and other regional banks, it is proposed that key letters
shall be used for describing routine transactions. For convenience, these key letters and their
definitions will be printed on the back of the daily statements.
Following is a list of the key letters relating to transactions with the member banks, their
definitions, and a full description of the transactions where necessary. For illustrative purposes the transactions are described from the standpoint of the regional bank situated in
New York.
DEBITS.
A. Items on you forwarded you preceding business day.
Items drawn on member banks and forwarded to them by regional banks are to be
charged to the member banks the day on which they will be received by the member
banks, being carried until that time in a transit account on the regional bank's books.
Assuming that all member banks will be within one day's mail of their regional banks,
the charges would be for items forwarded the preceding business day.
AT. Deposited with assistant treasurer.
For deposits made by regional bank with the assistant treasurer of the United States
for credit of member banks.
CA. Charged as per separate advice to-day.
To be used for special charges not covered by other key letters.
CC. Currency or coin shipped as per advice to-day.
CL. Clearing expenses.
For monthly charges to member banks for expense incurred in the collection of items.
CN. Note in your hands for our account due to-day.
For regional bank's notes or bills sent to member bank for collection and charged to it
on due date, also for notes and bills received from other regional banks and forwarded
to a member bank for collection, for which a charge will be made on the due date.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HD. Held as per advice to-day.
For item temporarily unpaid and retained for collection.
NT. Handed to notary as per advice to-day.
For items received from member banks, unpaid at close of day, which have been protested and returned to the member banks from which received.
PF. Protest fees as per advice to-day.
For fees charged on protested items returned.
RT. Item returned as per advice to-day.
For items drawn on member banks in other districts which were not paid and
have been
returned direct to our member bank.
TC. Transfer by correspondence as per advice.
TT. Transfer by telegraph as per advice.
CREDITS.

A. Cash letter received.
For items drawn on member banks in our district and in other districts received from
our member banks for credit.
CA. Credited as per separate advice to-day.
To be used for special credits not covered by other key letters.
CC. Currency or coin received.
DC. Deposit for your account as per advice to-day.
For deposits made by third party with regional bank for credit of member bank.
DI. Dividend payable to-day.
For dividends payable to members banks, which are to be credited direct to
their
accounts.
//?. Interest rebated.
For unearned interest or discount on loans or discounts taken up prior to due date.
RD. Proceeds of loan or rediscount.
PF. Protest fees.
For fees on unpaid items returned by our member banks.
RT. Item returned as per your advice.
For unpaid collection items returned.
TC. Transfer by correspondence as per advice.
TT. Transfer by telegraph as per advice.
The key letters to be used in describing the transactions arising among the regional
banks
are similar to those prescribed for transactions between the regional banks and their member
banks, except for such changes as are necessary on account of the altered character of the
transactions. The following is a list of the key letters to be used for regional-bank transact
ions,
with explanations:
DEBITS.

A. Items on member banks in your district forwarded you.
For items drawn on member banks in other districts forwarded their regional bank for
credit.
CA. Charged as per separate advice to-day.
To be used for special charges not covered by other key letters.
CC. Currency or coin shipped as per advice to-day.
ON. Notes due to-day as per our list.
For notes or bills sent to other regional banks for collection, which are to be charged
on
due date.
EC. Entered for collection as per advice to-day.
For items received from other regional banks temporarily unpaid and retained
for
collection.
NT. Handed to notary as per advice to-day.
For items received from other regional banks unpaid at close of day which have
been
protested and returned to the member banks from which received.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

45
PF. Protest fees as per advice to-day.
For fees charged on protested items returned.
RT. Items returned as per our list.
For unpaid collection items.
TC. Transfer by correspondence as per advice.
TT. Transfer by telegraph as per advice.
CREDITS.
A. Items on member banks in our district received from you.
For items drawn on member banks in our district, forwarded us for credit.
CA. Credited as per separate advice to-day.
To be used for special credits not covered by other key letters.
CC. Currency or coin received.
UN. Notes due to-day as per your list.
For notes or bills received from other regional banks for collection, which are to be
credited on due date.
EC. Item entered for collection now paid.
For items received from other regional banks temporarily unpaid as described under
EC. in "debits," now paid and credited.
/R. Interest rebated.
For unearned interest or discount on loans or discounts taken up prior to due date.
PF. Protest fees.
For fees charged on protested item returned.
RD. Proceeds of rediscount.
RT. Items returned as per your list.
For items returned unpaid to our member banks.
TU. Transfer by correspondence as per advice.
TT. Transfer by telegraph as per advice.
MISCELLANEOUS FORMS.
Stock subscription ledgers (111-1 and M-2).—These forms will be used for recording the
subscriptions received from member banks and from individuals, and the installments paid on
account of such subscriptions.
The record of member banks' subscriptions, Form M-1, is designed to show the number,
name and location of the subscribing bank, its paid-up capital stock and surplus, the amount of
,the subscription required by law, and the installments paid thereon. As the amount of the
subscription, divided by the par value per share ($100) will give the number of shares represented by the subscription, it has not been considered necessary to provide a special column for
entry of the number of shares.
For recording subscriptions received from individuals, Form M-9 will be utilized. The
front of this form is ruled for entry of the name, address, and legal residence of the subscriber,
the date and amount of the subscription, and the date and amount of the payments on account
of such subscription. The reverse will contain a record of the stock certificates issued to the
subscriber and the stock certificates surrendered for transfer.
Stock subscription certificate (111-3).—This form is designed to serve both as a subscription certificate and as a receipt for the installment payments. It is intended to be used principally in connection with subscriptions received from individuals.
Stock subscription receipt (111-4).—The stock allotted to the member banks being nontransferable, it is recommended that they be given receipts for the individual payments instead
of the stock subscription certificate described in the preceding paragraph.
Stock certificate receipt (M-5).—This form consists of a stub and a detachable receipt on
which the subscribers will be required to acknowledge receipt of the stock certificates issued to
them.
Stock transfer record (111-6).—This form will be used for recording transfers for account
of stockholders other than the member banks. It is ruled for entry of the date of the transfer;
the serial number of the certificate surrendered and the number of shares represented thereby


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

46
the name of the transferrer; the number of the certificate issued in exchange; the number of
shares represented by the new certificate, and the name and address of the transferee.
Standing order to mail dividend (111-7).—Each stockholder to whom dividend checks will
be issued, should be required to complete a copy of this form. If the dividends are to be
remitted to some one other than the owner of the stock, the signature of the stockholder should
be acknowledged before a notary public.
Dividend register (M-8).—As most of the stockholders of the regional banks will be member banks, whose holdings are not transferable a dividend register of this type should meet all
requirements. It is ruled to show the names and addresses of the stockholders and the dividends applicable to their holdings, also the number, rate, and total amount of the dividend,
the date on which it was declared, the date paid, and the date credited to the liability account
for dividends declared.
Dividends payable to member banks are to be credited to their accounts direct from the
dividend register. For the dividends payable to other stockholders, dividend checks will be
issued.
Authority to open account with regional bank (111-9).—Each member bank opening an
account with its regional bank should be required to furnish the latter with a certified copy of
the resolution of the board of directors authorizing such action. Form M-9 is recommended
for use in this connection.
---Simultaneously with the opening of an account, the member
Signature card (11f-10).
bank will be required to file with its regional bank, on this form, a list of the signatures to be
recognized by the regional bank in the payment of funds or the transaction of other business
for account of the member bank.
Purchase order (31-11).—This form is designed to furnish a suitable record of the orders
issued for the purchase of stationery and other supplies. The original of the order is to be forwarded to the supplier and the duplicate retained for office use.
Stock record for supplies (111-1-2).—For each article carried in stock separate cards of this
form are to be used, on which will be entered the description, the index number, and the location of the stock; the purchases; the issues; and the balance.
FEDERAL RESERVE AGENT.
The act stipulates that the Federal reserve agent shall be a person of tested banking experience and that he shall maintain, under regulations to be established by the Federal Reserve
Board, a local office of said board on the premises of the bank with which he is connected.
These stipulations will necessitate the Federal reserve agent keeping suitable records of the
notes received, issued, and withdrawn, of the rediscounts and other paper held as collateral to
note issues, and such other records as may be prescribed by the Federal Reserve Board.
Record of Federal reserve notes received from the Comptroller of the Currency (X-1).—
In the respective columns of this record will be entered the date and nature of the transaction,
the amount of notes received from the Comptroller, the amount returned to the Comptroller,
and the balance to be accounted for by the Federal reserve agent. This balance should equal
the amount of notes on hand as shown by Form X-2 and the notes issued to the regional bank
as recorded on Form X-3.
Record of Federal reserve notes on hand (X-2).—This record will show the details of the
notes received from the Comptroller of the Currency or returned by the regional bank, the
notes issued to the regional bank or returned to the Comptroller, and the balance, subdivided
as between notes on hand which are fit for circulation and notes which are not fit for circulation and are to be returned to the Comptroller.
Record of security furnished by regional bank and Federal reserve notes issued (X-3).—
From this record the Federal reserve agent will be able to ascertain at any time the amount of
rediscounts and other paper hypothecated with him by the regional bank and the amount of
Federal reserve notes issued against such security.
The total amount of each borrower's paper hypothecated with the Federal reserve agent
being ascertainable from the loan department records, it will not be necessary for the agent
to maintain a special record for this purpose.
Application for Federal reserve notes (X-4).—Thisform,which will be used by the regional
bank when applying for Federal reserve notes, is to be prepared in duplicate. The original


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

47
is to be retained by the regional bank as authority for the credit to circulation account, while
the duplicate is to be signed by the paying teller of the regional bank in acknowledgment of
the receipt of the notes and returned to the Federal reserve agent for entry on his records.
.—Except that it is to be used in connection with
Retirement of Federal reserve notes (X-5)
the retirement of Federal reserve notes, this form is very similar to X-4.
;
Record of notes hypothecated with Federal reserve agent (B-15) record of collateral withdrawn from Federal reserve agent (B-16).—As explained in a preceding section of this report,
the loan department will prepare these forms in duplicate in order that the Federal reserve
agent may be able to retain a copy for his own use.
Advice of currency returned to Comptroller (X-6).—This form will be used by the Federal
reserve agent for advising the Comptroller of shipments of mutilated currency.
Each package of currency returned to Washington should be accompanied by a detailed
schedule of the contents, showing both the serial numbers of the notes returned and their
denomination.
Daily report on note circulation (X-7).—The Federal reserve agent will report daily to
the Federal reserve board on this form the total issues and withdrawals of Federal reserve
notes, the amount of unfit notes returned to Washington, and the total amount of notes on
hand at the close of the day.
AUDIT DIVISION.
The function of the audit division will be to audit the records and securities of the
various departments comprising the banking division, also those of the Federal reserve agent.
The auditor in charge of this division should be thoroughly acquainted with the banking
business in all its phases and competent to judge if every part of the work is being properly
perfOrmed. While not under their jurisdiction, the auditor should cooperate with the officers
conducting the banking division so far as is necessary to safeguard the interests of the bank.
Under no circumstances should either the auditor or his assistants be allowed to prepare
or approve tickets of original entry. On the other hand, the audit division should be required
to prepare all tickets needed for the correction of errors; all error tickets should, however,
be referred to an officer in the banking division for approval before delivery to the bookkeepers for entry.
A classification and analysis of the duties of the audit division follow:
General proof
.—itt the close of business each day the various departments will deliver
their settlement sheets to the audit division, where the interdepartmental transactions will be
verified and the departmental totals assembled on the auditor's general proof sheet, Form Y-1.
Reconcilements.—The reconciliations of the accounts carried with other regional banks,
with member banks and Government departments, and with correspondents abroad will be
prepared by the audit division. The domestic accounts are to be reconciled on Form Y-2 and
the foreign accounts on Form Y-3. Reference to these forms will show that in each case the
reverse can be utilized for listing the outstandings.
Departmental audits.—Each of the departments comprising the banking division should
be audited at irregular intervals during the year. These audits should include a verification
of the cash, loans, investment securities, and other resources; a comparison of the securities
held as collateral with the collateral records; a proof of the liability accounts, and a detailed
check of the accrual accounts, and the accounts relating to earnings and expenses.
The securities and accounts of the Federal reserve agent should also be subject to audit
at frequent intervals.
Loose-leaf records.—The audit division should have charge of all sheets for loose-leaf
records, furnishing them as required and keeping an accurate record of those in use and in
the transfer files.
Canceled vourhers.—All canceled vouchers relating to the general accounts, debit and
credit tickets, etc., should be promptly delivered to the audit division for filing.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0
WASHINGTON : GOVERNMENT PRINTING OFFICE: 1914

CIRCULAR NO. 8.

FEDERAL RESERVE BOARD.
WASHINGTON, D. C., October 17, 1914.
In order to promote a desirable uniformity in the organization of the Federal reserve
banks, the Federal Reserve Board presents for consideration the outline of a tentative organization for the banks in certain essential aspects of their business. The outline has not been finally
approved by the Federal Reserve Board. It represents the work of certain experts who were
aplointed by the organization committee to examine into the details of organization. It is,
therefore, offered simply as a basis for further discussion.
OUTLINE OF DISCUSSION.
In dealing with the general question of the organization of the reserve system after the
necessary structure has been set up by the appointment of the boards of directors of the Federal
reserve banks and by the appointment of the Federal Reserve Board itself, it is deemed best
to recognize several distinct elements as follows:
1. The organization and management of a typical Federal reserve bank whose operations
are supposed to be representative of and practically uniform with those of every other.
2. The organization of the office of the Federal reserve agent stationed at each reserve bank,
and the duties of such agent.
3. The organization of the Federal Reserve Board.
4. The conduct of business of Federal reserve banks.
•
5. The relations between Federal reserve banks themselves and between each Federal
reserve bank and its member banks.
6. The relations between the Federal reserve system and outside banks.
7. The establishment of branches at home and abroad, and the relations between such
branches and the "parent" banks to which they are attached.
It will not be feasible, for reasons of convenience which will later appear, to discuss these
topics strictly in the order in which they are here presented, but each of the general discussions
thus indicated will be dealt with in the course of the report.
A beginning will be made by outlining the proposed type of organization for a Federal
reserve bank. The reasons for the precise form of organization suggested will become apparent
as the treatment proceeds.

ORGANIZATION OF BANKS.
In dealing with the actual organization of the proposed banks, two leading questions are
presented:
1. The systematic recording of their doings, including full provision for accounting and
internal regulation.
2. The officering of the several institutions, and the general relationship between their
organization and that of the Federal Reserve Board.
To some extent these two phases of the subject must be treated together, but the principal
features of each branch of the question of organization can be independently disposed of. Attention will first be given to the question of the routine conduct of business in the institutions.
In organizing the Federal reserve bank in each of the districts set apart by the organization
committee, it will be necessary first of all to determine upon the general type of organization
65678-14--1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
to be employed and to formulate a specific plan of procedure in accordance therewith. The
Federal res3rve act makes no effort to prescribe the details of organization but leaves them
to be settled by the boards of directors, subject to the general requirements of the methods,
'
and restrictions definitely set forth in the national bankmg act are to be adhered to.
ADMINISTRATION.

It is believed, however, that so far as practicable, the adoption of a uniform system of organization which shall prevail throughout the whole system of banks as nearly as conditions will
permit, is much to be preferred to a plan which would allow the banks to adopt a variety of
different methods of organization, according to circumstances. The points which have been
deemed, on the whole, practically essential in connection with the organization are brought out
in the latter portions of this report in connection with the treatment of branches, accounting,
and other subjects, but at this point it is considered desirable to sketch their main outlines for
the sake of clearness by way of introducing the subject. In general, the following requirements
must, it is thought, be complied with:
(a) Each Federal reserve bank should have a distinct executive head not identical with
the Federal reserve agent, even in those cases where the reserve agent has been selected in a
manner entirely satisfactory to the banking community, so that stockholders would be quite
willing to have the agent act as the executive head of the bank. Of course, this implies that in
no case should the president or executive head chosen by the stockholders be designated by
the Government as reserve agent. The intent of the act is distinctly opposed to any such fusion
of functions, the agent being intended to be a Government representative and spend his time
in furthering the interests of the public at large—a position he could hardly preserve were he
to become an active operating officer, anxious to increase profits and advance given private
interests.
(b) Each Federal reserve bank should be carefully subdivided into departments, each such
department representing a definite allotment of business, the divisions being those which
correspond with the various types of business set forth by the Federal reserve act.
(c) Each Federal reserve bank should be so organized as to provide for a proper check
upon the operations of the member banks and for a suitable oversight on the part of the reserve
agent. .
(d) Each Federal reserve bank should be subject to specified internal regulations evolved
as the result of bank experience, which will conduce to the efficient and economical conduct
of its affairs.
(e) Suitable provision shall be made in each bank for the bonding of employees and for
accurate control of their operations.
an
An organization chart has been prepared for the graphic presentation of this plan and has
already been issued.
(Tentative by-laws prepared for submission to the several boards of directors have already
been distributed as Circular No. 6 and are consequently omitted at this point.)
INTERNAL REGULATIONS.

Besides the general by-laws as thus set forth, it is believed that the proper conduct of the
new banks will call for a code of rules of internal regulations.
Probably one of the greatest initial difficulties in opening the Federal reserve banks will
.
.
be the securing of a competent staff. The continued efficiency of even a thoroughly competent
.
corps of bank employees depends largely upon the discipline in vogue in the institution. Such
.
.
.
discipline requires the application of rules designed to promote morale and proper thoroughness.
These rules should be sufficiently wide in their latitude to insure the primary essentials of
coordination. Their structure should be more than a series of prohibitions, and should serve
to give the tendency toward that which is desired, even if not categorically expressed.
They should at least be so arranged as:
1. To set forth the time at which employees of various grades should report for duty; to
stipulate when the windows shall be closed for business; to designate a maximum lunch period;
to provide for temporary absence or leave of absence; to provide for reports of tardiness; and
to provide for overtime work.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
2. To set forth when the vault shall be opened and closed and upon what authority the
vault may be kept open after the time provided; to designate what records shall'be kept by
the vault officer and what his duties shall be; to stipulate what parties in conjunction shall hold
combinations.
3. To require care to be taken of securities in the various departments; to set forth how
shipments of securities must be handled; to provide for receipting and recording of securities
received and delivered; to set forth under what conditions and under what authority valuables
may be deposited and withdrawn from the vault.
4. To set forth certain necessary regulations and restrictions regarding apparel, neatness,
and habits; to prescribe mutual courtesy and politeness; to restrict smoking to certain hours.
5. To require neatness of desks, cabmets, and other working furniture; to require care and
neatness in records prescribing how records shall be kept and closed.
6. To provide for initialing and signing of all necessary tickets and vouchers, what class of
entries certain authorities are empowered to sanction; to provide for signing of checks, receip t§,
and other papers.
7. To describe the duties and powers of the auditor; to specify to whom the auditor is
responsible and to what extent his authority obtains in the matter of accounting and the records;
to place final responsibility for all systems and changes on the auditor.
8. To indicate how supplies shall be ordered and how audited; to state upon whose authority
expenditures may be incurred; to prescribe when bills shall be paid, who shall receive and distribute supplies; to require that when reorders are necessary old forms shall be submitted to
auditor for possible change and correction.
9. To provide who shall code and decode cables and telegrams; to designate an officer
who shall hold test words and keys; to prescribe how copies and records shall be kept and
telegraph bills checked.
10. To prescribe who shall receive, assort, and distribute mail, who shall be authorized to
sign letters; to direct how correspondence files shall be kept and how access thereto may be
granted.
11. To provide for the assembling of all reports in the hands of a designated functionary
at a certain time.
WORK OF TRANSFER AGENT.

It is further suggested that in case the Federal reserve agent shall be authorized to acf. as
agent for the transfer of stock of the bank to which he is accredited, the following considerations
be observed by him, particularly in relation to stock, if any, that may be held by individuals.
It is understood that at the outset no such stock will be held by individual stockholders; but
a set of regulations designed to cover not only present conditions but those that might arise
under the terms of the law has been developed.
1. The salient point in transferring certificates of stock is to ascertain who has authority
to assign the certificate and how the authority was granted; whether by special resolution,
general resolution, or by the by-laws, in respect to a corporation; whether by will, indenture,
or court order, in respect to executors, trustees, administrators, guardians, agents,and the like;
or whether by power of attorney.
2. In every case proof of papers submitted shall be first ascertained to the satisfaction of
the transfer agent. He shall require that certificates issued in the name of a corporation or an
association be endorsed by such officials authorized by a special or general resolution, or the
by-laws, and a certified copy thereof attested by the secretary with the seal affixed;filed with
the stock certificate. A copy of the resolution shall be accompanied by a notary's certificate
certifying that he had inspected the minutes and that the resolution was a true copy thereof.
3. In issuing certificates to trustees, the trust shall be fully described by a reference to the
will or indenture under which the trust is created, and the name of beneficiary given, if possible.
In transfers from trustees, all trustees shall sign, and transfers must be accompanied by a copy
of instruments properly certified showing the authority of the trustees to sell or transfer. Trustees appointed by a court shall exhibit both certified copy of instrument and certified copy of
the court appointment. Transfers by administrators shall be accompanied by a copy of appointment certified by the probate court. Transfers by executors or administrators, with the will
annexed, shall be accompanied by a copy of the will and copy of the court appointment, both
certified by the probate court.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
4. In issuing certificates to a minor, the guardian's name shall also be given, as follows:
"James Brown (minor), under guardianship of William Jones."
Transfers from a minor shall be made only by a, guardian appointed by the court, who
shall exhibit a properly certified copy of his appointment.
5. Trustees, executors, administrators, guardians, or agents shall not transfer directly to
themselves individually.
6. In transfers executed by an attorney, the original power of attorney, certified by a
notary, or a copy of same,shall be left on file. Authority to transfer stock shall appear in the
instrument, and evidence is required that the signature to the power of attorney is genuine
and that the power of attorney is in force at the time of transfer.
7. In issuing a certificate to a married woman, her Christian name and not that of her
husband with "Mrs." prefixed shall be used. In case a new certificate is desired by reason of
change of name by marriage of an unmarried woman, the old certificate shall be signed as
fellows: "Mrs. Mary E. Brown (formerly B. Smith)," the new certificate being issued in the
name of "Mrs. Mary E. Brown."
8. Signatures on assigned certificates shall be guaranteed or notarially acknowledged.
9. Transfers shall not be made directly from husband to wife or from wife to husband.
10. Certificates issued in the name of an individual shall show their Christian name as
follows: John Smith, Charles A. Jones.
11. Certificates issued in the name of a bank, corporation, or association shall show title
and address as follows:
First National Bank, New York City.
First National Bank, Chicago, Ill.
Farmers National Bank, St. Louis, Mo.
12. Certificates shall not be issued in the name of an estate of a deceased person, but in
the name of the representative of the said estate. •
13. Certificates in the name of a deceased person shall not be transferred until the filing
of papers as aforesaid and the filing with the transfer agent of consent from the comptroller of
the State in which deceased resided.
14. All transfers in the name of a deceased person shall be referred to counsel of transfer
agent, as each State has different inheritance laws in respect to estates of decedents.
15. The signature of the assignment on the back of stock certificates shall correspond to
the name as written on the face of the certificate in every particular without alteration.
16. All notarial acknowledgments shall have affixed a certificate of certification by county
clerk or court of notarial authority.
SYSTEM OF ACCOUNTING.

As already noted, the system of accounting to be employed by the reserve banks is logically
to be considered and dealt with under the head of organization. Inasmuch, however, as the
accounting problems of the banks necessarily involve references to features of business management, such as the clearing system of the banks, the duties of Federal reserve agents and others,
it has been separately dealt with.
FEDERAL RESERVE AGENTS.

The Federal reserve act provides for the appointment of a new type of official, heretofore
unknown to Federal law, to be designated as "Federal reserve agents." With reference to
these agents the reserve act provides (sec. 4) as follows:
Class C directors shall be appointed by the Federal Reserve Board. They shall have been for at least two years
residents of the districts for which they are appointed, one of whom shall be designated by said board as chairman of
the board of directors of the Federal reserve bank and as Federal reserve agent. He shall be a person of tested banking experience; and in addition to his duties as chairman of the board of directors of the Federal reserve bank, he shall be
required to maintain under regulations to be established under the Federal Reserve Board a local office of said board on the
premises of the Federal reserve bank. He shall make regular reports to the Federal Reserve Board and shall act as its
official representative for the performance of the functions conferred upon it by this act. He shall receive an annual
compensation to be fixed by the Federal Reserve Board and paid monthly by the Federal reserve bank to which he is
designated.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5
Elsewhere in the act it is provided that the reserve board shall—
Make regulations for the safeguarding of all collateral, bonds,Federal reserve notes, money, or property of any
kind deposited in the hands of such agents. * * *

By section 16 it is provided that
Any Federal reserve bank may make application to the local Federal reserve agent for such amount of the Federal
reserve notes hereinbefore provided for as it may require. Such application shall be accompained with a tender to
the local Federal reserve agent of collateral in amount equal to the sum in the Federal reserve notes thus applied for
and issued pursuant to such application. The collateral security thus offered shall be notes and bills accepted for
discount under the provisions of section 13 of this act, and the Federal reserve agent shall each day notify the Federal
Reserve Board of all issues and withdrawals of Federal reserve notes to and by the Federal reserve bank to which he
is accredited. * * *

The functions of Federal reserve agents as thus set forth are broad,inasmuch as the agent
is made the local representative of the Federal Reserve Board for the performance of the
functions intrusted to such board. The agent is therefore able to exercise under the direction
of the said board such powers as the board may desire specifically to intrust to him. At the
same time the act is excee,dingly specific in its directions with reference to the records that are
to be maintained by such agent. While experience will undoubtedly in the long run alter and
develop any conceptions of the functions of Federal reserve agent which may be employed at
the beginning, it is manifestly necessary to develop a set of instructions for Federal reserve
agents to be used by them at the inauguration of the reserve banks and to continue in use
until such time as experience may demonstrate the necessity of some new method of describing such functions or some extension of them, while it is equally desirable and necessary to
describe with care the records which are to be maintained by such agents.
•
Attention will first be paid to the general duties of the agent himself and to the scope of
the functions to be performed by him.
The intent of the act never was that of placing the Federal reserve agent in charge of the
Federal reserve bank to which he is accredited or of vesting him with practical banking Functions
in the direct management of business relationships between the reserve bank and its member
banks. Its purpose was to make him a local supervisory factor representing the Federal Reserve
Board and ultimately the Government, that is to say,the public, his duties being fundamentally those of controlling the issue of the notes applied for by the reserve banks and of inspecting
and supervising banking operations in the district for the purpose of assuring himself, and of
being able to assure the reserve board, that the banks, both member and Federal reserve, were
complying with the letter and spirit of the law.
In pursuance of this conception of the duties of Federal reserve agents, it will be necessary
for the Federal reserve bank to be in possession of detailed information concerning each member
bank, as to financial condition, character of management, competency of officers and directors,
care exercised in. granting and checking credits, custom in extending accommodation to
directors and officers, or to corporations which they may own control, or be interested in, and
relations with large borrowers. Safeguards must be adopted to control the use of rediscounting
power and to check overexpansion.
In this connection it will be desirable to have detailed records.
It will be necessary for the Federal reserve agent to be familiar with the affairs of the bank
and the general business and credit conditions in the district which the bank serves. For this
reason, it is both desirable and necessary that a plan be adopted which will give to the Federal
reserve agents facilities for obtaining definite, reliable, accurate, and detailed information.
Application for the issue of Federal reserve notes must be made to the reserve agent and
must be accompanied by a tender of bills and notes as collateral security. (Sec.16,par.2). It
is therefore suggested:
1. That the Federal reserve agent exercise general supervision over credit records and data,
concerning member banks and borrowers which may be compiled from reports and examinations of member banks, and elsewhere.
2. That all statements or reports made to the Federal Reserve Board be prepared under the
direction, or bear the countersignature, of the Federal reserve agent.
3. That special examinations of member banks provided for in the act should, when undertaken, be made under general direction of the Federal reserve agent.
We may now proceed to enumerate the chief features of a plan for the management of the
business of the Federal reserve agents
•

65678-14--2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

6
GENERAL PLAN-STATEMENT AND REPORTS.
FEDERAL RESERVE BANKS.

1. There should be adopted a form of general statement or balance sheet which will show
on its face the true condition of each bank and give under appropriate headings the assets and
liabilities in detail, as well as such supplemental information as will be necessary to give to the
Federal Reserve Board an idea of general business and financial conditions in the district which
the bank serves.
WEEKLY REPORT.

2. At the close of business Friday of each week a statement, showing the general condition
of each Federal reserve bank, should be forwarded by the agent to the Federal Reserve Board
at Washington. Figures should be telegraphed so as to be received at Washington by 9 a. m.
Saturday morning.
FEDERAL RESERVE BOARD.

3. A statement showing condition of each Federal reserve bank and a consolidated statement for all Federal reserve banks is to be published once each week. (Sec. 11, Par. A.) It is
suggested that publication be made either on Saturday or Monday. This will be more fully
discussed in speaking of the board itself.
MEMBER BANKS.

4. For the purpose of ascertaining the general condition of member banks in each Federal
reserve district, it is suggested that a weekly report, showing the average condition of each
member bank, be made to the head office of each Federal reserve bank, at the close of business
Friday of -ach week. The figures should be compiled under the direction of the Federal reserve
agent and the summary forwarded by marl or telegraph to the Federal Reserve Board. If deemed
advisable, a brief summary of condition of member banks in each Federal reserve district and a
combined statement of all member banks should be published not later than Wednesday of
following week,by the Federal Reserve Board.
RELATIONS WITH BOARD.

5. The Federal reserve agent must each day notify- the Federal Reserve Board of all issues
and withdrawals of Federal reserve notes to and by the Federal reserve bank to which he is
accredited. (Sec. 16, par. 2.) It is suggested that the Federal reserve agent be also required
to forward to the Federal Reserve Board at the close of business Friday of each week a detailed
statement giving—
(1) Amount of gold and lawful money deposited with him by the Federal reserve bank
to which he is accredited for exchange for outstanding Federal reserve notes. (2) Bills of
exchange, notes and drafts held by him as collateral to Federal reserve notes issued to the Federal
reserve bank. (3) Record of the total outstanding notes at the beginning of week, notes issued
or retired during the week, and liability of Federal reserve bank upon outstanding notes on day
of report. (4) A summary to be carried forward from previous I eport, showing amount of
Federal reserve notes received from comptroller, outstanding notes in circulation, notes
returned to the comptroller for cancellation or destruction, and notes in hands of Federal reserve
agent. (5) List of collateral held by Federal reserve agent, showing the aggregate liability of
makers, drawers, indorsers, and acceptors, on bills of exchange, notes, and drafts received
from banks, as security for Federal reserve notes issued.
Forms designed to serve for the preparation of these repprts and records have been carefully
drafted and will be found in the collections of forms accompanying this report. Two distinct
sets of forms for the purpose of carrying out the foregoing recommendation have been drafted—
one set accompanying the accounting plan presented in Appendix I, and numbered as Portfolio
III, the other included in that presented in .Appendix II and numbered as Portfolio II.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7
IDENTIFICATION OF NOTES.

In this connection it is also deemed best to make a recommendation that will be of considerable importance in furthering the convenience of the reserve banks in assorting their notes.
Section 16, paragraph 3, of the Federal reserve act provides that—
Notes * * * shall bear upon their faces a distinctive letter and serial number which shall be assigned by the
Federal Reserve Board to each Federal reserve bank.

In order that a uniform set of numbers may apply to the Federal reserve system throughout,
it is recommended that the number which shall appear on the Federal reserve notes as above
provided shall be the official number of the city where the issuing Federal reserve bank is
located, according to the system of numbers now used by the banks of the country in numbering
checks. The consecutive order of these numbers is based upon population. Letters should
also be assigned to the banks to indicate their position in the reserve system, the Arabic numerals
being arbitrary so far as that system itself is concerned.
Some of the Federal reserve districts and banks would, under this system, be numbered
as follows:
1. A New York.
2. B Chicago.
3. C Philadelphia.
4. D St. Louis.
5. E Boston.
11. F San Francisco.
The use of letters in connection with these numbers makes possible a continuity of designation, so that if additional reserve banks are organized it will not be necessary to change any
previous numbers or letters.
The notes should be printed with the letters and numbers in the upper right-hand corner
and the lower left-hand corner, and they should be sufficiently distinct to enable tellers and
clerks to assort the notes readily by number when preparing them for return to their originating banks.
EXAMINATIONS.

In connection with the sections of the Federal reserve act concerning examinations, suggestion is made as to
1. Examination of Federal reserve banks and branches.
2. Examination of records and accounts of Federal reserve agents.
3. Examination of affairs of member banks, so as to inform the Federal reserve bank as
to the condition of member banks and lines of credit that are being extended. (Sec. 21, par. 3.)
4. Establishment of a credit bureau in each district for collecting and compiling informa
ton .concerning member banks, and borrowers who are dealing with member banks, or who
are selling paper in the open market.
FEDERAL RESERVE BANK.

Section 11 (par. A) authorizes and empowers the Federal Reserve Board to examine at its
discretion accounts, books, and affairs of each Federal reserve bank.
Section 21 (par. 5) provides that the Federal Reserve Board shall at least once each year
order an examination of each Federal bank, and upon joint application of ten members banks,
the Federal Reserve Board shall order a special examination and report of condition of any
Federal reserve bank.
The law provides for an examination of each Federal reserve bank, at least once a year.
Each bank should be examined twice yearly. It would be well if possible to have all reserve
banks examined by a carefully selected corps of bank specialists, who would be instructed to make
a thorough and detailed audit of the affairs of each bank, making full report to Federal Reserve
Board and to the board of directors of each Federal reserve bank.
The examination should cover a thorough investigation of investments, rediscounts,
collateral loans, and open-market transactions particular attention to be paid to compliance
'
with the provisions of the Federal reserve act and to rulings of the Federal Reserve Board.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

8
Relations with the foreign agents, agencies, banks, and branches of Federal reserve banks
should be investigated, and balances and accounts should be verified and reconciled. Accounts
of member banks and balances due to or from other Federal reserve banks should be reconciled,
as should also all monies on deposit.to the credit of the United States Government or of public
officials. The foreign department in each bank should be audited. Profit and loss accounts
should be carefully analyzed. Thus, the examination should cover a complete audit of the
bank and branches. The examiner should consult with the Federal reserve agent and the
board of directors, upon the completion of the examination.
Report should also be made as to the competency of management, condition of records,
attention given by directors to the affairs of the bank under examination, and attention should
be called to any unsafe or unsound condition or tendency that might be apparent in any department of the bank.
The use of a special corps of examiners for examinations of Federal reserve banks would
have many advantages. The work will call for men combining the qualities of credit specialists,
appraisers, and bank accountants. The examiners will become more valuable at each succeeding examination.
EXAMINATION OF RECORDS OF FEDERAL RESERVE AGENT.

The records and accounts of the Federal reserve agent, in each Federal reserve district
should be examined at least quarterly, and a detailed report made to the Federal Reserve Board
.
by examiners in its employ. The examination should cover a verification (a) of gold and
lawful money held by Federal reserve agent, deposited with him by the Federal reserve bank
for exchange for outstanding Federal ieserve notes; (b) of all bills of exchange, notes, and
drafts held as collateral seculity for Federal reserve notes; (c) records of substitution and
withdrawals of collateral; (d) of Federal reserve notes, received from Comptroller of Currency,
delivered to Federal reserve banks and in hands of Federal reserve agent; (e) of all other books
and records.
In each bank there should be an auditor, who should be under instructions and subject to
the direction of the Federal reserve agent.
MEMBER BANK EXAMINATIONS.

Section 21 provides:
The Comptroller shall appoint examiners who shall examine every member bank at least twice each year, provided,
however, that the Federal Reserve Board may authorize examinations by the State authorities to be accepted in the
case of State banks or trust companies, that are stockholders in any Federal reserve bank. The examiner making the
examination of any national bank, or of any other member bank * * * shall make a full and detailed report of
the condition of said bank to the Comptroller of Currency.

Section 21, paragraph 3, provides that—
In addition to the examination made and conducted by the Comptroller of Currency, every Federal reserve bank
may, with the approval of the Federal reserve agent, or the Federal Reserve Board, provide for special examination of
member banks within the district. * * * Such examinations shall be so conducted as to inform the Federal reserve
bank of the condition of its member banks and of the lines of credit which are being extended by them.

Under the plan suggested, each member bank will forward to the head office of the Federal
rem:ve bank in the dist ict in which the member bank is located a weekly report, showing its
averacie condition for the week.
ills info. mation will be i ecorded in a manner to show changes in condition from week to
week. For mo e detailed information, however, the Federal reserve bank will be dependent
upon data obtained in connection with the examination of member banks.
Success in bank examinations depends to a large degr ee upon the care exercised by the
examiner in investigating the lines of credit extended to borroweis by the bank under examination, upon the facilities which the examiner has of obtaining ieliable infoi mation as to the
character and financial i esponsibility of the officers, directois, and principal borrowers, and
finally upon the method used in collecting, compiling, and recording infoi mation for use in
subsequent examinations.
There should be adopted in each Federal reserve district a uniform plan of examination,
which would pi ovide for a tho- ough and detailed examination of each member bank by a force
of competent, well-equipped examiners, authorized to take the necessary time. A high standard


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

9
of efficiency should be established which would make it attractive and desirable for State banking institutions to join the Federal reserve system. Examinations of city and country institutions should be made equally effective.
To prevent a multiplicity of examinations, the special examination by the Federal reserve
bank might be made in connection with the regular examinations made by National or State
bank examiners. Certain information should be obtained for use of the Federal reserve bank:
(1) A record of all loans over a stated amount. (2) The character of collateral accepted as
security. (3) A record of bank stock hypothecated at bank under examination. (4) The
classification of loans, investments, and collateral. Suggested form for use in this connection
has been developed and will be found in the portfolio of forms accompanying Appendix I.
LOCAL CREDIT BUREAU.

It is believed and recommended that the Federal reserve system should be equipped with
very carefully prepared credit bureau records. Two plans for developing such records have
been considered. Under one the records would be conducted and kept at the several reserve
banks; under the other they would be kept in a single office under direction of the Reserve
Board in Washington. In either case frequent communication of results must occur between
the several banks and the board. A choice between the two plans will depend somewhat upon
the system of accounting determined upon. In Appendix I is given a system of accounting
more adapted to the establishment of a local credit bureau in each reserve bank, while in
Appendix II records are so formulated as to concentrate credit records in Washington as a byproduct of the accounting. The credit bureau principles in general will be the same in either
case. (See Portfolios II and III.)
Assuming, for the purpose of the discussion, that in each Federal reserve bank a credit
bureau in charge of the agent is to be established, its duty should be the collection and recording of data concerning member banks, and the standing of individuals, firms, and corporations,
discounting at or borrowing of member banks, or selling paper in the open market.
This bureau should have card indexes showing
1. Loan record, compiled from examination reports, showing borrower's loan liability at
each bank, with a minimum limit of $5,000 in city and $2,500 in country banks.
2. Bank stock hypothecation record, showing bank stock hypothecated at member banks.
3. Inactive collateral record, showing securities of small or close corporations, or securities
having a limited or inactive market, whether securities be held as investments or as collateral
by member banks.
firm, or corporation affiliations of the directors and officers of
4. Record of the
the district.
every member bank inbusiness,
5. Current record of failures, bankruptcies, and large judgments affecting borrowers of any
member bank.
6. Record of character, standing, and financial responsibility of all bankers and note brokers
engaged in selling notes, drafts and bills of exchange in open market.
7. Record of standing and financial responsibility of individuals, firms, and corporations
selling notes, drafts, and bills of exchange in open market.
Aplan for the exchange of information should be arranged with the credit bureaus established in other Federal reserve districts, and, with the approval of the Comptroller of Currency,
with the credit bureaus established by State banking authorities where a proper system for
safeguarding information has been adopted.
Credit bureau data should be available to the Federal reserve agent, the executive officers
and directors of Federal reserve banks, and the national bank and Federal reserve bank
examiners.
Suggested forms for these records are presented in the portfolios accompanying the appendices, especially in Portfolio III.
The credit bureau will also have the benefit of service of mercantile agencies and will no
doubt subscribe to various financial publications.
65678-14---3


1
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

10
OTHER CREDIT RECORDS.

It is provided in the general plans of accounting offered herewith that each Federal reserve
bank shall keep detailed records showing
1. The aggregate liability of membr banks on paper rediscounted by the Federal reserve
bank, as well as the liability of member banks on bills, notes, and drafts purchased from or
discounted for others.
2. The aggregate liability of individuals, firms, corporations, banks, bankers, municipalities,
etc. on bills, notes, and drafts, rediscounted for member banks, or purchased in the open
market.
'
A similar record should be kept of the liability of concerns upon foreign exchange bills and
drafts bought and sold and of foreign bills of exchange purchased for investment.
It will be seen that there is provided a means of ascertaining definitely the aggregate
liability of any one firm, individual, or corporation on bills, notes, or drafts held by the reserve
bank. Through the credit bureaus there will be facilities for ascertaining the extent of paper
held by member banks. If the principal office of a concern is located in another district, a
comparison may be made with the credit bureau in that district.
To ascertain the credit standing and financial responsibility of concerns selling their bills
of exchange, notes, and drafts in the open market, arrangements may be made to obtain from
the note brokers copies of signed financial statements and copies of auditors' reports. Access
to records of credit *bureaus of other districts will enable the Federal reserve bank to obtain
definite information as to the extent of liability at banks where principal borrowing accounts
are maintained. However, as in the case of the credit departments in banks and mercantile
houses, all information will have to be systematically recorded, statements carefully analyzed,
and comparative statements made.
It will take some years to develop the credit bureau and department, but each Federal
reserve bank will have access to many sources of information which are not at present available.
Through their commanding positions, the Federal Reserve Board and banks will be able to
exercise a close supervision over the commercial paper market, to eliminate many of the abuses
which are now apparent, and probably suggest a means of standardizing statements, audits,
and reports of borrowing concerns.
°
The credit bureaus will aid examiners in their investigations and tend to increase the
efficiency of all bank examinations if the proper degree of cooperation is established. The
after each examination, definite information regarding the credits and condibureau will
bank.
tion of the have, The Federal reserve bank will be vitally interested in all data concerning
the standing of each member bank, in order to determine the line of rediscount that may be
safely and wisely extended. To prevent inflation and an abuse of the accepting power, there
must be continuous vigilance.
The power to restrict or limit the rediscounting privilege will be effective in forcing the
elimination of lax methods and unsafe practices; will prevent the gradual accumulation of questionable assets, and will, in effect, require members to conduct business along sound, businesslike lines. The Federal reserve examinations of member banks and examinations by national
bank examiners will be a distinct advantage to members and will eventually prove a guarantee
of solvency.
If the main work of conducting credit records be carried on under the charge of the agent
at each of the reserve banks, as thus suggested, it will still be desirable that there be a centralization or combination of results under direction of the board at Washington through some one of
its several divisions which shall transmit the combined information to the other bureaus; while
if the information is directly compiled at Washington in the first place a local receiving mechanism will also be needed in each bank.
STATISTICAL BUREAU.

An important part of the work of the Federal Reserve Board will be found in the making of
thorough and satisfactory analyses of data relating to bank operations in different parts of the
country. These analyses will be necessary both from a scientific and a practical banking standpoint. They should include careful compilations of figures designed to show the actual operations under each section of the reserve act, changes in the outstanding currency circulation,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

fluctuations in the specie stock of the several reserve banks and of the system as a whole, variations in the conditions of domestic and foreign exchange, and a variety of other items. While
it is undoubtedly true that experience in the management of the system will materially modify
any plan for the collection of such statistics and for the making of analyses of the kinds already
indicated, it will be desirable to start with a complete and thorough basis for classifying the
various data collected and for presenting the net results in an easily comprehensible form.
Indeed it will be only by this means that the subsequent development of the statistical analyses
along lines closely adapted to the peculiarities of the system itself will be practicable. It has
therefore been deemed wise to present the outline for a statistical bureau to be organized under
the direction of the board at Washington. Such an outline has been prepared under the direction
of the committee by Mr. Ludwig Bendix, of New York City, and is presented in Appendix III
of this report.
BONDING OF AGENTS.

The Federal reserve act provides in section 11, paragraph 1, that—
The Federal Reserve Board shall be authorized and empowered * * *
(i) To require bonds of Federal reserve agents to make regulations for the safeguarding of all collateral bonds,
said board shall
Federal reserve notes, money, or property of any kind deposited in the hands of such agents, and
perform the duties, functions, or services specified in this act, and make all rules and regulations necessary to enable
said board effectively to perform the same.

With reference to the first provision in this section, namely, that authorizing the Federal
Reserve Board to "require bonds of Federal reserve agents" (the organization committee being
presumed to exercise the same functions as the Federal Reserve Board under section 2 of the
act), it is suggested that three questions arise:
1. The amount of the bonds to be given by Federal reserve agent's.
2. The nature and form of the bonds to be furnished by them.
3. The 'question whether such bonds shall be separate and applicable only to the reserve
agents or whether a "blanket bond" covering all employees and officers of the Federal reserve
bank and including the reserve agent with others, should be permitted.
In view of the fact that the Federal reserve agent,is distinctly a Government officer, although
paid by the bank to which he is accredited, and in view of the fact that his responsibilities are to
the Federal Reserve Board primarily, rather than to the bank itself, it is recommended that each
and every Federal reserve agent be called upon to give -a separate bond for himself and his own
staff, and that he be not included in the blanket bond, if any, which may be written for the
protection of all other officers and employees of the bank at large. His bond would thus cover
merely his own liability and that of the subordinates under him in his own office.
The 'question of form of bond has formed the subject of careful inquiry, and it is believed
that the form employed by the American Bankers' Association, and recommended by them for
general use, is the best that can be employed under the circumstances.
With reference to the amount of the bond to be given by Federal reserve agents, considerable
difference of opinion has been encountered, and, as a result, consultations have been had with
the officers of some of the principal bonding companies. As a result of the investigation thus
had and the advice furnished, it is recommended that the bonds of Federal reserve agents shall
not fall below a minimum of $100,000, and that they shall vary according to the activity and
resources of the reserve bank to which each such agent is accredited, probably not exceeding
$250,000 in any case.
DOMESTIC BRANCHES.

The Federal reserve act contains the following provisions (sec. 3) with reference to branch
offices:
within the Federal reserve district in which it is
SEC. 3. Each Federal reserve bank shall establish branch banks
have been suspended. Such branches
located and may do so in the district of any Federal reserve bank which may by the
Federal Reserve Board. Direcshall be operated by a board of directors under rules and regulations approved reserve banks. Four of said directors
tors of branch bank shall possess the same qualifications as directors of the Federal and they shall hold office during the
shall be selected by the reserve bank and three by the Federal Reserve Board,
pleasure, respectively, of the parent bank and the Federal Reserve Board. The reserve bank shall designate one of
the directors as manager.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

12
It will be observed that this section is expressed in such broad and general terms as to leave
in the hands of the Federal Reserve Board and of the organization committee at the outset,
very large powers with respect to branches. It will be possible practically to prescribe the
conditions under which such branches will operate, subject only to the general limitations as to
directors laid down in the section as above quoted.
Two methods of dealing with these branches suggest themselves:
1. The establishment of a completely organized banking house acting as a branch of the
reserve bank of the district in each place where a branch may have been determined upon.
2. The establishment of a local office only without bankina machinery and equipped
merely with a limited clerical organization at the service of the board of directors appointed
b
as above provided for.
These types of organization may be considered in reverse order.
If it be determined to organize simply a local office the board of directors of the branch socalled would necessarily amount to nothing more than a subcommittee whose functions would
be those of ascertaining the character of the paper offered for rediscount by the banks of the
community, certifying to its desirability, or disapproving it as the case might be, and then
transmitting the paper for actual rediscount to the reserve bank of the district. This plan
would have the advantage of avoiding the outlay necessitated by the organization of a complete branch and would also eliminate all necessity for establishing a system of accounting in
the branch which should fit into the accounting system of the reserve hank of the district. It
would also eliminate all question of necessity for a readjustment of the clearing system. On
the other hand the question may be raised whether so simple a type of organization would
satisfy the demands of the cothmunity in which the branch was located and would supply a
sufficient additipn to the mechanism of the reserve bank to warrant establishing it. Its function
would obviously be only that of a credit committee passing upon particular paper. If this plan
should be resorted to, it is suggested that the only records required by the branch would be
those relating to offerings of paper.
On the other hand, if a full-fledged bank should be established at each branch point, it is
believed that the following questions would have to be definitely considered in connection with
the matter:
1. Relation of branch accounting to accounting of district reserve bank.
2. Relation of method of handling checks and tronsit items to corresponding methods in
district bank.
3. Area or tenitory to be assigned to branch as special or peculiar to it, i. e., extent of subdistrict within which such branch would be located.
4. Internal organization of branch.
5. Capitalization, if any, to be assigned to the branch.
Assuming that branches were to be created on this plan at the outset, it is suggested that
in every particular the regulations recommended in this report with respect to the management
of a district reserve bank should be applied in the conduct of the branch, in so far as practicable.
At certain points, however, it will not be desirable to develop a full-fledged organization in the
branch. The question then arises precisely how far the organization should go and at what
point reductions or curtailments have to be made.
It is recommended that in the event of the establishment of such branches they be assigned
a proportionate capitalization based upon the capitalization and surplus of the member banks
included within the.territory assigned to the branch. This, however, should be only a tentative
matter and such assignment of resources should be merely to bridge over the period during which
it is found from experience about what amount of paper will on the average be presented by
the banks in each branch district. When sufficient experience has been had to determine this
point, the resources to be employed should be distributed among the branches in proportion
to the quantity of paper presented on the average by the member bank in each such branch
district. It is recommended further that the parent bank of the district shall in every case
retain for itself a substantial portion of the district as a territory from which paper shall be
,
directly presented for rediscount. This would mean simply that the branch districts would be
established whenevqr there was a special need for them in a particular part of a district which
presented a clear-cut, independent trading area whose territory was an economic unit and whose
member banks naturally stood in close relationship to one another. The suggestion also amounts
to a rejection of any plan for subdividing a district completely into branch areas while the dis-


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

13
trict reserve bank itself exercised no distinct banking functions except those of oversight. It is
believed that this latter plan would not be desirable, but that in every district there should be a
stro ig independent reserve bank organization performing actual banking functions and directly
rediscounting the paper of a considerable number of the member banks included within such
rlistrict.
Whenever a branch is established with a banking house of its own,actual banking machinery
and a boarl of directors, as provided by the Federal reserve act, it is recommended that it be
required to install a system of accounting precisely similar to that prescribed by regulation
for the Federal reserve banks themselves and that it be permitted to vary from the system laid
down for such reserve banks only at those points where the maintenance of certain records is
rendered unnecessary by reason of the fact that the branch does not perform the functions to
which such records relate.
BY-LAWS.

The following suggested outline of by-laws will afford further detailed data concerning the
internal organization requiring to be perfected in each branch:
BY-LAWS
of
FEDERAL RESERVE BANK OF
BRANCH
of
Federal Reserve Bank of
Established by it

, 19L..

ARTICLE I.
Directors.
SECTION 1. Number and quorum.—The number of directors shall be seven. A majority
of the directors shall constitute a quorum.
SEC. 2. Meetings.—There shall be a stated meeting of the board every Wednedsay at
o'clock a. m., or, if that day be a holiday, on the first day preceding not a holiday.
The chairman of the board shall be empowered to call a special meeting at any time, or
upon the written request of any two directors or whenever requested to so do by the manager
or by the Federal reserve bank of the district.
SEC. 3. Powers.—The board of directors shall annually submit for approval to the parent
bank a schedule of compensation and duties of officers, clerks, and employees of the branch.
SEC. 4. Order of bustness.—The following shall be the order of business at each meeting
of the board:
(1) Reading or inspection of minutes of the last regular meeting.
(2) Report of the manager, including information concerning banking and business
conditions in the district, as well as detailed summary of all business transacted
since last regular meeting and statement of present condition, the latter to
include:
(a) Statement of all loans, rediscounts, investments, and purchases.
(b) All official correspondence received from the parent bank.
(3) Committee reports.
(4) Unfinished business.
(5) Approval of report and recommendations to parent bank (duplicate to be sent to
Federal Reserve Board).
(6) New business.
65678-44-4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

14
ARTICLE II.
Discount committee.
SECTION 1. How constituted.—There shall be a discount committee consisting of the
manager, the chairman of the board, and one director of the class appointed by the parent bank.
Such director shall be elected by the board to serve for a period not to exceed one month,and
his successors shall be chosen in rotation until each member of his class shall have served or
shall have been given an opportunity to serve. The board shall elect each month an alternate
for service on the discount committee, who shall be authorized to act in the absence or disability
of the member first chosen.
SEC. 2. Minutes.—The discount committee shall cause to be kept minutes of all meetings
held by it, which shall be read and approved by members of the board at the next succeeding
meeting. A copy of such minutes shall be promptly sent to the parent bank.
SEC. 3. Powers.—Subject to the rules and regulations of the board of directors of the parent
bank, the discount committee shall be vested with the following powers:
(1) To pass upon all commercial paper submitted for discount.
(2) To suggest open market transactions to the parent bank.
(3) To apply through the Federal reserve bank of the district for such Federal reserve
notes as may be necessary for the general requirements of the branch.
ARTICLE III.
Officers.
SECTION 1. The officers to be chosen by the board of directors shall be a manager, who
shall be one of their number, a vice manager,' and such other officers as the board may from
time to time deem necessary. They shall hold office during the pleasure of the board.
SEC. 2. Chairman.—The chairman of the board shall be chosen by the Federal reserve
Board from the directors appointed by said board. He shall preside at all meetings of the
board. He shall, together with the officers of the bank, have supervision of all credit records
and data concerning member banks and borrowers which may be compiled from reports and
examinations of such banks. All reports and statements made to the parent bank shall be
prepared under the general direction of the chairman and copies thereof shall be sent directly
to the Federal Reserve Board.
SEC. 3. Vice chairman.—In the absence or disability of the chairman his powers shall
be exercised and his duties performed by the vice chairman, who shall be'
designated by the
chairman, or in default of such designation, by the manager, from the directors appointed by
the Federal Reserve Board.
SEC. 4. Manager.—The manager shall have general charge of the branch and shall preside
at all meetings of the discount committee,subject, however, to such rules and regulations as may
be incorporated herein or from time to time promulgated by the board of directors of the branch
or of the parent bank.
In all cases where the duties of subordinate officers and agents of the branch are not specifically prescribed by the by-laws or by the board of directors of the branch or the parent bank,
they shall be the duties specified by and instructions of the manager. The manager may, with
or without the advice of the board of the branch,suspend or remove any employee of the branch,
subject, however, to a hearing before said board.
SEC. 5. The vice manager.—In case of the absence or disability of the manager, his powers
shall be exercised and his duties discharged by the vice manager. In the absence or disability
of both, the board of directors shall, by a majority vote of the directors present, appoint a director manager pro tem.
The -vice manager shall have charge of all moneys received and paid out on account of the
branch and shall examine and countersign all checks for the payment of money signed by the
manager. He shall, jointly with the manager, have custody of all investments and collateral
held by the branch. Ho shall keep the minutes of all board meetings and of all committees of
the board.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1 The number of vice managers will depend upon the size of the branch and the character
of its work.

15
In case of the absence or disability of the -vice manager, or whenever occasion may require
it, the manager shall appoint such director or employee of the branch as 443 may deem proper,
.
vice manager pro tem.
ARTICLE IV.
Information.
SECTION 1. All persons employed by the branch shall keep inviolate its business affairs and
'concerns, and shall not disclose or divulge the same to any unauthorized person whomsoever.
Any employee who shall give information contrary to this by-law shall be liable to immediate
dismissal.
SEC. 2. The action or policy of the board shall not be expressed by any individual member, but by its duly constituted officers after formal action by the whole board and under rules
and regulations prescribed by the parent bank.
SEC. 3. For the information of member banks and the public, there shall be maintained in
the office of the manager a bulletin board, upon which shall appear the current rates of discount established by the parent bank and such other information as it may deem necessary to
publish.
FOREIGN BRANCHES.
The power to establish foreign branches is broadly conveyed in the Federal reserve act,
which includes authority covering not only the creation of such branches, but also the establishment of agencies, the appointment of correspondents, etc. The question, however, whether
or not to create such branches rests upon a somewhat different basis from that which relates
to the establishment of domestic branches.
With reference to operations in foreign countries it is to be expected that as the reserve
System develops these operations will become extensive and important. They should be fully
provided for by a plan which will assure absolute efficiency in the handling of the functions of
reserve banks abroad. That at the start it may be desirable to await the definite organization
of the reserve institutions is quite probable, but before many months the management of the
b
business abroad must be seriously taken in hand. Inasmuch as the approval of the Federal
Reserve Board is requisite to the establishment of foreign branches, it is evident that the board
will have full authority in the matter.
The first point which, it is believed, calls for careful consideration is the number of branches
of reserve banks which shall be independent of one another. Plainly the provisions of the law
are such that if the Reserve Board should approve of such a course each and every one of the
several reserve banks might establish independent branches in foreign centers. The conceivable result of such action would be the establishment of a number of branches, one to each reserve
bank, equal to the number of reserve banks, in every important foreign center. This, it is believed, would be unwise. From the standpoint of the foreigner the reserve system should be
to
organized as a unit, while in controlling the flow of specie b and from the United States it
should act as a unit with a single and uniform policy and without competition within itself.
These requirements should be fulfilled best, it is believed, by requiring the reserve banks to
join in designating a common agent or to join in creating a joint branch at each foreign center
where it is believed that such representation is needful or desired. If it should appear that some
of the reserve banks do not care to have such representation abroad, their cooperation could
be waived, the whole matter being placed upon a voluntary basis. • But if they find that they
want such representation, then they should be required to cooperate in establishing and bearing the expenses of the branch existing at the point where the representation is desired. This
naturally necessitates a plan of dividing the expenses of the branches or agencies abroad between the Federal reserve banks. It is recommended that the following plan shall be in substance followed:
1. Whenever a Federal reserve bank desires to establish a branch or agency in a foreign
country it shall make application to the Federal Reserve Board for permission to do so, and in
case such permission is granted it shall be allowed to establish the branch or agency under
conditions of organization conforming to the principles laid down in the general provisions
that may be adopted with regard to branches.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

16
2. If any other reserve bank should subsequently desire to secure representation in the
same place at which such branch or agency may already exist it shall be required to select
the same agent, or if a branch has actually been established it shall be permitted to join in the
operation of the branch bearing a share of the expense dependent upon the percentage of total
operations undertaken for its account as *compared with the aggregate operations of the branch.
3. The personnel of the branch organization shall continue as first established by the reserve bank which created the branch, but as places fall vacant they shall be filled upon the
nomination of the reserve bank subsequently joining in the operation of the branch in a proportion corresponding to its payment of expenses.
4. Should other reserve banks desire to join in the operations of the branch they may do
so upon a basis of division of expenses based upon the principles already laid down above.
5. Should the Federal reserve banks subsequently desiring representation (after the establishment of the branch by one such bank) prefer to have the branch already existing act as
agent for them they may do so, and in that event the reserve bank or banks actually cooperating
in the conduct of the branch shall charge for their services a sum to be determined at the end
of each half year and dependent upon the proportion borne by the operations of the bank or
banks designating the branch as agent, to the total operations of such. branch.
6. Whenever a foreign branch is organized a specified sum shall be assigned to it as a basis
for its operations, such sum to be determined in each and every case by consultation between
the Reserve Board, or the organization committee, if the task is undertaken while the system
is in its initial stages. Other reserve banks which subsequently participate in the operation
of the branch shall assign to it a sum of working capital to be determined in the same way.
7. In the event that several reserve banks desire at the outset to join in the establishment
of a branch at a designated foreign center, the total working capital to be set apart will be
determined as above indicated and shall be divided among the several reserve banks in proportion to their capitalization.
8. The accounting records of each such foreign branch shall be the same as those prescribed
for domestic branches, except that the reserve banks participating in the operation of the
branch shall be regarded as joint partners.
RELATIONS BETWEEN BANKS.

In discussing the relations between members of the Federal reserve system, attention
must be devoted to three phases of the question:
1. Relations between the Federal reserve banks themselves.
2. Relations between member banks in each district and member banks in different districts.
3. Relations between member banks and their own Federal reserve banks.
In surveying these distinct elements of the problem, it is deemed best to consider first
of all a matter which involves portions of the question referred to under the first head above
and of that referred to under the.third head. This is the clearing of checks. It is believed
that the most important problem involving these relations between the banks in normal times
will be that of clearing the items drawn upon the reserve banks by their Member banks and
banks by their depositors. If this clearing process
those drawn upon the individual
meit
is satisfactorily and effectively carried out, t will profoundly modify the relationships now
existing between banks and will have an importantinfluence in reshaping the operations of
present clearing houses, transforming ultimately the functions of these clearing houses and
changing the degree of their significance from the standpoint both of their members and of
outside institutions.
CLEARING SYSTEM.

The provisions of the Federal reserve act with respect to the introduction of a system of
clearings are found in section 16, where it is provided that—
Every Federal reserve bank shall receive on deposit at par from member banks or from Federal reserve banks checks
and drafts drawn upon any of its depositors, and when remitted by a Federal reserve bank, checks and drafts drawn
by any depositor in any other Federal reserve bank or member bank upon funds to the credit of said depositor in said
reserve bank or member bank. Nothing herein contained shall be construed as prohibiting a member bank from
charging its actual expense incurred in collecting and remitting funds, or for exchange sold to its patrons. The Federal


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

17
member banks from its patrons whose checks are
reserve bank shall, by rule, fix the charges to be collected by the be imposed for the service of cleaving or collection
cleared through the Federal reserve bank and the charge which may
rendered by the Federal reserve bank.
governing the transfer of
The Federal Reserve Board shall make and promulgate from time to time regulationsits discretion exercise the
and may at
funds and charges therefor among Federal reserve banks and their branches,a Federal reserve bank to exercise such
functions of a clearing house for such Federal reserve banks, or may designate clearing house for its member banks.
of a
functions, and may also require each such bank to exercise the functions

It is evident that this provision distinctly contemplates two classes of work:
are
(a) A clearing system providing for the clearing of items among member banks which
ers and depositors in any Federal reserve bank.
stockhold
(b) A clearing system which shall provide for clearing the transactions of Federall reserve
banks among themselves.
system
It is strongly believed and recommended that a complete and thorough clearing
consistent
shall be inaugurated by every Federal reserve bank at the earliest possible momentreasonably
is
with success. This system should further be continued and extended as rapidly as items drawn
of
possible until it extends to all classes of operations and provides for the clearing be used both
on both member and nonmember banks. The facilities of the reserve banks should
under. conditions which
locally and for out-of-town checks in the broadest possible sense and with nonmembers while
banks upon a satisfactory basis of competition
will place the member
giving to the customers of member banks the advantage of a system of par collection wherever
e will
possible and of collection at cost wherever charge must be made. Undoubtedly experienc
and of rates of charge from the plan herewith
show some necessary changes both of method
herewith afforded and
recommended, but it is believed that the basis of a satisfactory system ismind the fact that the
subsequently- necessary. Having in
that no material alterations will be
it is, however,
banks can not perform their full functions in this resprect at the very outset, ntly extending
only with a partial system of clearings, subseque
recommended that they start
this as they become able to do so.
An analysis of the law shows that it is the intent to readjust the domestic exchange mans that the
chinery of the present banking system to conform with practices and regulatio , in drawhave demonstrated to be the most efficient. Therefore
experience of clearing houses
policy
ing up forms and regulations to govern the operations of the Federal reserve banks, the in the
as possible clearing-house principles RS a model. Wherever,
should be to adopt so far
is not
plan to be proposed, it may seem at first glance that a proposed method of procedure phrase
d in the bill, the warrant for such proposition is contained in the
specifically authorize
either
"functions of a clearing house," and nothing herein suggested will be found to do violence
principles or practices.
to clearing-house
to
It is one of the primary functions of banking and the purpose of all clearing houses
the "clearing principle," which is the offsetting Df debits with credits, to effect
make full use of
and drafts, thus resettlements by book transfers, and to use such credit instruments as checks
minimum the handling of actual currency. The primary object of the plan here
ducing to a
enormous domestic
presented is,to use the machinery of the Federal reserve system to make thenation being finally
business of the country clear itself, the balances of the entire
exchange
of the Federal reserve clearing house.
focused and cleared by a simple operation on the books uniform regulations with respect to doFederal reserve bank should be ,governed by
Each
whole system of clearing. These
mestic exchange functions,since each such bank is a part of the organization of departments and
regulations apply to forms, advices, accounting systems and se
They will be
conform to the rules applied by all well-conducted clearing-hou associations.
three divisions:
grouped for convenience of treatment into
in the
(1) The relations between the Federal reserve banks and the member banks
same city.
(2) The relations between the Federal reserve banks and their members outside the
city.
(3) The relations between the Federal reserve banks themselves.
65678-14-5


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

18
RELATIONS BETWEEN THE FEDERAL RESERVE BANKS AND THEIR MEMBERS IN THE SAME CITY.

The Federal reserve banks may if thought best cooperate with the other banks of cities
where they may be located, first, by joining the local clearing house, and, second, by providing
A means of Settlement of clearing-house balances through book transfers.
Several points are open to discussion in connection. with plans or regulations governing
the relations littWeen the Federal reserve banks and their memberslocated in the same city.
The logical development of the reserve banks will ultimately result in their assuming the functions of a clearing house, but in view of the policy not to interfere unnecessarily with present
practices,and also on account of the fact that nearly all clearing houses are composed partly of
nonmember banks, it is recommended that the Federal reserve banks shall not accept local
member checks on deposit, provided such checks are payable through.the clearing house, until
such time as it Will be possible for the bank to assume all the functions of the local clearing
house, .
.The Federal reserve banks will present checks on outside member banks and Outlying
local member banks through the mails, bat it would be more economical and convenient to preSent City member checks through the clearing house. A question here arises as to whether
the Federal reserve banks should be members "both sides," that is, receiving, as well as
presenting, checks at the clearing house. Were the existence of clearing houses where the
Federal reserve banks are located to be considered permanent, or were all the members of the
clearing house Certain to be members of the system, then it would seem wise to recommend
that the reserve banks should "out-clear" only, but, the facts being otherwise, local members
shOtild be permitted either to deposit drafts on the Federal reserve banks or to present them.
through the clearing house. As to the deposits of member checks by local banks, it is recomMended,that a time limit be set by each Federal reserve bank, say. at 2 13. m., after which no
items of less than $1,000 of any kind would be accepted on deposit. This rule will be found
necessary to prevent the clogging of the internal machinery of the banks, which would delay
the outgoing mail. Experience in large city banks has demonstrated that it is much easier to
handle large Volumes of checks if they come in early in the day, because a given number of checks
can be handled with much less labor and chance of error if received within a fixed time limit
than the sat& number of items can be handled When spread over a longer period. The bulk of
all checks; received by business men come by morning mails, and the individual depositors
in member banks can be gradually educated to make their deposits early.
iThe settleinent of balances resulting from clearing-house exchanges must be adjusted to
cOnfOrin With the fact that all members of clearing houses Will not be members of the Federal
reserve system. Settlement may be effected by one of the following methods:
1. DettOr tanks will give their drafts on the Federal reserve banks to the manager of
the clearing house, nonmember debtor banks paying to the manager funds acceptable for
deposit with the reserve banks. The manager of the clearing house would then deposit the
drafts with the reserve bank. The reserve bank would credit such deposits to a "clearing
account". which would be subject to the manager's check in favor of creditor banks. The
rule should, be laid down that drafts on the Federal reserve bank given to member creditor
banks should be deposited and not cleared through the next exchange.
2. Assuming that all clearing-house banks are members of the System, the manager of the
clearing &Also Will Present to the Federal reserve agent a rnernotandurn showing debtor and
creditor balances, Which May then be settled by a transfer on the books of the Federal reserve

bank.

If it should occur in any city that all the banks are Members both of the clearing house
and of the Federal teSerVe system, and the clearing house be continued, it would be practicable
to have the Federal reserve bank "out clear" only.
The relatidnghip, therefore, between the Federal reserve banks and members in the same
city may be said to be a local problem which may be adjusted along the brOad lines here suggested without in any *ay interfering with the pblicy Of uniformity in the esSential features
of regulation affecting the clearing functions of reserve banks.
In general matters the regulations covering the accounts of member banks Will apply to
city members as well as country members.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

19
THE RELATIONS BETWEEN THE FEDERAL RESERVE BANKS AND THEIR MEMBERS OUTSIDE THE CITY.

The deposit section of the Federal reserve act provides that —
Any Federal reserve bank may receive from any of its member banks and from the United Slates deposits of
current funds in lawful money, uational-bank notes, Federal reserve notes, or checks and drafts upon solvent member banks payable upon presentation. * *
Under this provision the following elements of the deposit process will be as follows:
1. Lawful money, national-bank notes, and Federal reserve notes are to be deposited as
such deposits are now made in banks—that is, using a regular deposit slip bearing the name
and number of the member bank and the items to be separated as to kind of money deposited.
No checks are to be enclosed with deposits of money.
2. In receiving checks on deposit the Federal reserve banks assume a service for their
members which, unless it is properly controlled and regulated, will result in a serious burden
and will tax the resources of the reserve banks to the utmost. Care must be taken that the
work be reduced to a minimum and that the member banks relieve the reserve banks as far
as is practicable.
3. A uniform letter of remittance or deposit should be used throughout. Member banks
will divide the items deposited into those payable by the Federal reserve banks and those payable by other banks in the city where the reserve bank is located. These items may be placed
on one sheet or letter in separate totals. A different sheet or letter must be used for each State
within the region or district, and as the number of members increases such States may be
redivided in accordance with the regulations of each reserve bank.
4. Items payable in other Federal reserve districts will be separated into two totals,
"inside" and outside," and the outside items will be grouped as to States, although a single
total will be accepted and such "outside" items may be placed on a single remittance sheet.
5. With each deposit of checks from member banks there is to be enclosed a summary
sheet giving the total of each separate sheet or division with a grand total or footing. •
6. Opposite each item in the entire deposit, the member bank should designate the place
payable, preferably by number. Special instructions, such as "no protest," "wire nonpayment," etc., should be covered by an official tag or slip, which is to be securely fastened to the
item, and no confirmation of such instructions shall be required to be written on the letter. A
distinctive mark or symbol should also be stamped upon each such check.
7. Each item deposited shall he indorsed by the member ba!dc with a rubber stamp which
shall bear the name of the Federal reserve bank through which the items are cleared, the date
received by the Federal reserve bank, and the name and number of the member bank. This
stamp, when used by the member bank, shall be considered to guarantee all previous indorsements and shall read as follows:
Cleared through
The Federal Reserve Bank of N. Y.
August 1, 1914
First National Bank
50-36 Syracuse, N. Y. 50-36

8. All items deposited by member banks with Federal reserve banks should become
"reserve" only after they have been collected, that is, placed in the possession of the paying
bank, and thus chargeable to the account of the drawer. They ma
by member banks
into the general ledger item "Due from Federal Reserve Bank of-- ----------- the day they
"
are mailed, but a memorandum account should he carried by the member bank in which this
item is to be divided into"transit account" and "reserve account." Each member bank shall
be furnished a time schedule and in connection therewith shall operate a book which may be
designated the "Reserve maturity tickler." In accordance with the time schedule, the member
banks will post the detail amounts according to the divisions mentioned under the dates when
such checks may be credited to "transit a/c" and charged to "reserve a/c." These dates in
every case will be based on the receipt of the items at the place of payment.
An alternative plan differing in theory as applied to reserves but more practical and simple
in operation. may be considered as follows: The Federal reserve banks will charge member checks
against the balance of such members upon the day forwarded. This would reduce the amount
of bookkeeping necessary and would simplify the time schedule by more than one-half. On
the other hand, member banks would be apt to object.to having their reserves thus depleted


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

20
without their knowledge. This objection could be met by a concession which would further
reduce the accounting, that is, by allowing member banks to use all checks on members of the
same district as reserve the day forwarded to the Federal reserve bank, as is now permitted in
making remittances to reserve agents.
It is desirable that drafts on Federal reserve banks should be acceptable without question in
all districts. It may be suggested, therefore, that such drafts be deposited in a separate total
together with drafts payable by the reserve bank where deposited to be counted as reserve by
the member bank at once, or if the alternative plan outlined in the preceding paragraph is
adopted, drafts on all Federal reserve banks could be included in the totals of checks on other
.
•
•
members of the same district.
The Federal reserve bank will credit the account of the member banks on day of receipt of
the items, such account to be subject to draft. The reserve bank in turn will use a time schedule
corresponding to the one used by member banks and similarly the reserve bank will charge transit account, crediting such account and charging other reserve banks as hereafter provided. If
any member bank should draw below its collected funds,such drafts should be subject to a charge
based upon, but higher than, the current discount rate of interest.
In section 19 the act provides that member banks may check against their reserve balances
with reserve banks "subject to such penalties as may be prescribed by the Federal Reserve
Board," but it would be better banking to induce them to restore their reserves through rediscounts.
The Federal reserve banks will receive items on deposit until 2 p. m. each day. After
2 p. m. and until 3 p. m.items of $1,000, and over only, and after 3 p. m. until 3.30 p. m.items
over $10,000 only, after which all items received will be held over until the following day and the
member bank so notified.
The time of day and amounts here specified need not be uniform for each reserve bank, but
should be regulated by each such bank in accordance with local customs and geographical
position with respect to transportation and mail facilities.
At the close of the day's business all checks on member banks will be forwarded to the
member banks, the letter bearing opposite each amount the indorsement record of the depositing
bank. These remittances will be charged by the reserve banks in "transit account." On the
following day, or the day of receipt by the member banks, the accounts of the member banks
will be charged and "transit account' will be credited.
Attached to each letter from the reserve bank will be a perforated slip bearing the total of
the inclosure, to be used as an acknowledgment of receipt. The slip will read:
We credit you $

checks on this bank received to-day.
(Signed)

Cashier.

If items are unpaid they are to be returned direct by the member upon whom drawn to the
member making the deposit, with the Federal reserve bank first receiving them, and upon
receipt of advice the Federal reserve bank will credit the member bank the amounts of such
checks returned direct and charge the accounts of members to whom the items have been returned. If such unpaid items have been received by the reserve banks from other reserve
banks they will be returned direct in the same way and adjustment made between the reserve
banks as hereafter provided. Unpaid items which have been deposited by the United States
Government or any of its agents will, however, be returned in every case to the reserve banks
by the member banks.
Member banks should be encouraged to make use of the Federal reserve banks to effect
settlement with one another through book transfers. The reserve banks should perform such
service as between its own members at par, since it avoids the use of drafts and also does not
reduce the loanable funds of the reserve bank. Transfer of funds by members for the credit
of members of other districts may also be easily arranged, and the charges therefor will be
discussed under a separate heading in this report.
Reserve banks will also send to member banks for collection notes, acceptances, and such
paper as is usually classified as "time items," representing the matured loans and discounts of
the Federal reserve banks, such items, if unpaid, to be returned by member banks to the Federal reserve bank owner, with proper advices.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

54.
At the close of each day's business the Federal reserve banks will mail a statement of the
day's transactions to each member bank other than which no acknowledgment of receipt of
items, etc., will be required. At regular intervals the balance shown by such statement as of
a certain day will be reconciled by the member bank and a report made to the reserve bank.
RELATIONS BETWEEN THE FEDERAL RESERVE BANKS.

* * * or solely for exchange purposes (any Federal reserve bank), may receive from other Federal reserve
banks deposits of current funds in lawful money, national-bank notes, or checks and drafts upon solvent member or
other Federal reserve banks, payable upon presentation.
Every Federal reserve bank shall receive on deposit at par from member banks or from Federal reserve banks
checks and drafts drawn upon any of its depositors, and when remitted by a Federal reserve bank, checks and drafts
drawn by any depositor in any other Federal reserve bank or member bank upon funds to the credit of said depositor
in said reserve bank or member bank.

As between the reserve banks, there will be five different kinds of transactions. (1) The
exchange of checks for collection payable in their respective districts, and also the exchange
of checks and drafts on one another. (2) The transfer of funds deposited by the member
of one bank to the credit of a member of another bank. (3) The deposit of Federal reserve notes
for redemption or credit as provided in the act—
Whenever Federal reserve notes issued through one Federal reserve bank shall be received by another Federal
reserve bank, they shall be promptly returned for credit or redemption to the Federal reserve bank through which
they were originally issued.

(4) The deposit of other funds, such as national-bank notes or lawful money which the Federal reserve banks are permitted to deposit with one another for exchange purposes. Such
shipments should be subject to the request of the Federal reserve bank receiving the deposit.
(5) the collection of notes, drafts and acceptances for rediscount, as provided in section 13,
which may be payable in a district other than where rediscounted.
Checks remitted by one Federal reserve bank to another should be divided as to inside
and outside items, the outside items being further divided as to States, or such other division
as has been provided for the member banks depositing with Federal reserve banks. They
need not be indorsed by the Federal reserve bank remitting or by the reserve bank receiving
them.
Each Federal reserve bank will carry a single account with every other reserve bank.
Using the time schedule mentioned previously, charges and credits of check remittances will
be made simultaneously.
Remittances of Federal reserve notes will not be charged in transit account, but will be
carried in the general ledger item, "Notes of other Federal reserve banks," until the date of
receipt by the bank to whom sent. Remittances of lawful money, national-bank notes, etc.,
to be sent only upon request, will be charged to the reserve bank to whom sent on the date of
shipment and will be carried as an asset of such bank among its other cash items.
Time items will be forwarded a sufficient time before maturity and will be charged and
credited on date due.
Transfers for member banks, if made by mail, should be charged and credited on day of
receipt of notice. If made by wire the entries should be made on day of such advice. No
such transfers should be made by wire or mail after 3 p. m., and in the event of differences of
time between banks the time used by the bank that is the farthest east should govern.
The original figures of every transaction of whatever nature between Federal reserve
banks should be considered to be correct, and the original entries should not be changed by
either the bank charging or the bank crediting. Allowances for errors, returned items, etc.,
and all changes in the account between any two banks should be adjusted by mail. The
accounts between any two Federal reserve banks will thus automatically reconcile, provided
there has been no delay in the mails. To provide against such a contingency, it is proposed
that if any reserve bank fails to receive the regular daily letter from any other reserve bank
by 2 p. in. a telegraphic advice be sent to the forwarding bank, which would then defer the
usual charge until the following day.
65678-14-6


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

22
FEDERAL RESERVE CLEARING HOUSE.

To settle the balances between reserve banks growing out of these various transactions, a
clearing house is suggested, as provided in the act, in the clause which specifies that "The
Federal Reserve Board * * * may at its discretion exercise the functions of a clearing
house for such Federal reserve banks or may designate a Federal reserve bank to exercise such
functions. * * *"
If one of the Federal reserve banks should be chosen as a clearing house, for convenience of
location it might be the Chicago bank; but this function of clearing would be better assumed
by the Federal Reserve Board. For many reasons it would be well to establish the clearing
house at the National Capital. Since each reserve bank will carry a single account with every
other reserve bank, subject to simultaneous debit and credit, the bulk of the interchange of
business will clear itself. Balances will arise partly on account of the seasonal changes which
will alter the debit and credit relationship between the districts and partly on account of the
fact that membership in the system will not be proportionately equal as between national and
State banks in different regions.
The plan herewith proposed is based upon the requirement that each Federal reserve
bank deposit with the Federal Reserve Board clearing house all of its gold beyond that which
will be sufficient to take care of local needs. This gold deposit, carried on the books of each
reserve bank in a separate item as a part of its reserve funds, can be used in either of two ways
or in a combination of them to effect settlement which will be expiained later. Settlement
need not be made between reserve banks oftener than weekly., since to require daily settlement
might prevent the operation of the natural clearing effected by the interchange of ordinary
business transactions. Therefore at the close of business on each Thursday each reserve bank
should wire the clearing house the amount of the balance and should state whether debit or
credit relations exist between it and other reserve banks. Allowing one day, Friday, for
adjustment of any differences in the advices received;the clearing would be effected on Saturday.
How this shall be done depends upon a consideration of the following possibilities:
The gold deposited with the clearing house may be credited upon a simple set of books to
each bank so depositing. Clearing would then be effected by a charge and credit on the books
and advice would be made to the reserve banks. This is the simple plan but it has one apparent
disadvantage in that the banks would have no tangible evidence of the ownership of the gold
'
other than a book credit. Consideration might, therefore, be given a plan of issuing certificates
in large denominations against the proposed gold deposits as clearing house currency certificates
are now issued. Upon the direction of the Federal clearing house, the debtor reserve banks
would mail these certificates to the creditor banks to pay balances. These two plans might be
combined so that, although the clearing of balances woutd be effected by book transfers of
gold at the Federal clearing house, the debtor banks could anticipate this settlement by mailing
certificates to creditor banks prior to the day of settlement. Both these plans, however, seem
less effective and more cumbersome than the first plan. Very little (if any) gold would ever
need to be transferred between the reserve banks, and such operations would be limited to
transactions between the banks and the clearing house. The banks, in turn, would be able to
loan or borrow, buy, or sell gold in dealing with each other, and the transactions would be
arranged through book transfers at Washington.
It is recommended that the official who may act for the Federal Reserve Board as supervisor of the clearing functions of the system act also as the manager of the Federal reserve
clearing house and bear the same relation to the reserve banks that the manager of any clearing
house does to the members of a city clearing house. In addition to the supervision and control
over the entire machinery of domestic exchange, he should provide for its development along
lines hereafter suggested.
CHARGES FOR COLLECTION.

The Federal reserve act provides in section 16 that—
The Federal Reserve Board shall, by rule; fix the charges to be collected by the member banks from its patrons
whose checks are cleared through the Federal reserve bank and the charge which may be imposed for the service of
clearing or collection rendered by the Federal reserve bank.
The Federal Reserve Board shall make and promulgate from time to time regulations governing the transfer of
funds and charges therefor among Federal reserve banks and their branches. * * *


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

23.
It must be borne in mind that the banking power of the United States will divide more
sharply than it has ever done before into two groups—members and nonmembers. It is the
intent of the act itself to bring nonmembers into, the system. But so long as there is any considerable body of nonmember .banks, the two groups will of necessity be in competition with
one another, producing two parallel clearing systems. The organization of the domestic exchange machinery of the new system thus takes on a double aspect. On the one hand, Federal
reserve banks and their members must be prepared to meet a competition on the part of non-.
members; but, on the other hand, the domestic exchange business of the Federal reserve system
must be so arranged as to offer constant inducements to nonmembers to enter the system.
At the same time members must find it more profitable to use the Federal reserve system than
to make collections as at present. The situation is more complex when it is taken into consideration that member banks are in a position to deal on favorable terms either with the Federal
reserve banks and their members or with nonmembers.
All charges contemplated in the act should be based on actual costs, and it should not be
the policy of the Federal Reserve Board, nor of the reserve banks, to assess these charges against
member *banks upon a basis that would yield a profit. All costs should be placed against members for whom service is rendered as hereafter provided. The costs would include overhead
charges, clerical hire, including that of department management, stationery, postage, and equipment depreciation. In addition, all similar expense incidental to the maintenance and operation
of the Federal clearing house will be assessed against the reserve banks, which charge will, in
turn, be added by each reserve bank as a part of its clearing expense.
It should be the duty of the compilation department of each reserve bank to keep an accurate monthly record of the costs herein mentioned incidental to the clearing of all checks. A
record of the amount and number of checks and drafts charged against the account of each
member should be kept by each reserve bank, and an additional record of the amount of the
items payable in other districts deposited for credit and clearing by member banks. The total
monthly cost should then be divided between these two amounts in proper proportion, the
number of items making up the amount payable outside the district being estimated upon the
basis of the figures of the number of checks divided into the total amount charged against members' balances. The cost of handling checks charged against members' balances should then
be charged monthly to the accounts Of such members, and should be based one-half per hundred
of items and one-half per thousand dollars. The cost of handling checks on other districts
should be similarly- prorated and charged against members depositing such checks.
Each reserve bank should be required to send a monthly statement to the Federal reserve
clearing house, showing total amount that has been charged against it by all other reserve
banks during the previous month. The clearing house would then assess the costs of operation
upon reserve banks in proportion to such amounts. Each reserve bank should calculate the
proportion of this clearing house cost chargeable to check and transfer-for-members debits, and
this cost should then be apportioned and charged to members per thousand dollars of checks
charged to their accounts or transfers made for them. Similarly the proportion of the cost of
shipping gold to the clearing house chargeable to check and member transfer debits should be
added by each reserve bank to the clearing house cost which is to be charged to niembers.
Except for the charge for telegraphing when such transfers are requested, there should be no
further charge against members for the transfer of funds. Accounts of the United States
Government or any of its disbursing agents should be subject to the same basis and method of
clearing charges as applied to member banks.
In addition to the charges above provided, a scale of fines should be arranged applicable to
members making errors in their deposits. The purpose of such fines is to place the cost of
locating errors against the member making the error, and the income, if any, derived from this
source should be deducted from the total operating cost. The scale should cover the following:
Error in listing or addition
Error in recapitulation sheet
Items missorted, including items not receivable, each
Checks listed but not inclosed, or inclosed but not listed, each
Items not indorsed, each


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$1.00
1.00
50
2. 00
.50

CHARGES BY MEMBER BANKS.
BY

The policy of limiting charges by member banks against their patrons to actual expenses
incurred is clearly indicated in the bill. Therefore the rate which the Federal Reserve Board
is to fix for the member banks to charge for their patron's checks which are cleared through the
reserve banks, should be based on the costs as outlined and hereinbefore provided. Checks
payable outside the district may be made subject to a charge by the member banks against the
indorsers.
Checks drawn by depositors and charged against the member banks' accounts by the
reserve bariks,may be made subject to a charge against the makers of the checks. In each case
the Federat Reserve Board should base the rate on charges made by the reserve banks, both
for disttiet and other items, and an additional amount to cover a similar cost entailed by the
member bank as to overhead charges, stationery, etc. This rate, which may be made dependent
on the aili8iifit of the checks only, shall be considered to be the maximinm rate which the member bank 1-114,Y be permitted to charge under the act, but it is recommended that the words in
section 16; ofige 19,line 46,"to be collected," be, by rule, construed to Mean "may be collected."
OtherWikaPositors in member banks would withdraw their deposits and place them with nonmemberS not requited to make such charges.
ChgeS should be Made by the reserve banks against member banks as near as possible
to the first Of each month covering the costs of the preceding month. .The charges that are to
be made by member banks against their patrons should be based, as provided, on the original
costs; Mit they should be at rates fixed annually to. cover such charges with sufficient margin
only td a1t6W for slight monthly variations. Every member bank should be permitted to make
its own Wiges against depositors who draw againskuncollected funds or against nondepositors
for caShi.ii`i or collecting checks and drafts. Charges provided in: the act should not be construed tO cover notes, sight drafts, coupons or other paper commonly known as "collections,"
but sh.buld COver checks and bank drafts only.
OTHER RULES AND REGULATIONS.

One Provision in the Federal reserve act specifies that—
The Federal reserve bank * * * shall have power—
Thircl. To make contracts.
Sixth. To prescribe by its board of directors, by-Jaws not inconsistent with law, regulating the manner in which
its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed.
Seventh. To exercise by its board of directors, or duly authorized officers or agents, all powers specifically granted
by the provisions of this act and such incidental powers as shall be necessary to carry on the business of banking within
the limitations prescribed by this act.

In accordance with these powers, it is recommended that as soon as the recommendations
herein contained, or similar recommendations, have been officially adopted by the Federal
Reserve Board, each Federal reserve bank shall send to each member bank a printed agreement
which each member shall sign by its president and cashier. This agreement (subject to change
in the details of the clearing plan finally adopted) should be somewhat as follows:
In order that the provisions of the Federal reserve act affecting the deposit of funds by member banks, the collection and clearing of checks and drafts, and the fixing of charges therefor may be efficiently and economically adNational Bank, member of the reserve bank of
ministered, the
, herewith agrees to be bound
by the following rules:
1. All items shall be deposited on such forms and in such manner as shall be prescribed by the Federal reserve
bank, and failure to do so, or any errors made in such deposits shall subject the member bank to a reasonable fine.
2. Members agree not to deposit with the Federal reserve bank checks on other member banks within twentyfive miles of such member bank, except where specifically permitted by the,reserve bank, or except that this rule
shall not be construed to apply to members which are within twenty-five miles of the reserve bank. Members situated
in the same city with the reserve bank shall not deposit checks and drafts on other member banks in that city, unless
such members are not members of the clearing house. (This rule is inserted as a result of the belief that it will be
found expedient to give to the reserve bank the power to refuse to accept such items as would better be collected through
local clearing houses or branch banks.)
3. It is agreed that the Federal reserve bank may send all items direct to the member bank on which they are
drawn.
4. Items received after the time fixed for the receipt of such items shall be held over until the following day, and
notice sent to the member bank.
5. The accounts of members will be charged, upon notice, with items lost in the mails or otherwise, and upon request members shall secure duplicates.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

O. Items accompanied by special instructions, such as "no protest," "wire nonpayment," etc., shall have firmly
affixed a slip bearing such instructions, and in addition each item shall be plainly stamped with a mark indicating
such instructions. Other than this no confirmation of instructions shall be required on the letter.
7. The member bank undersigned hereby agrees that the clearing endorsement stamp used by it on all checks
deposited with the reserve bank guarantees all prior endorsements.
any
8. Items unpaid are to be returned direct to the member bank which originally deposited such items vFederal reserve bank, and proper notice is to be sent to the reserve bank from which such items were received.
9. The member bank undersigned agrees that all checks and drafts payable at such bank shall be charged against
the balance standing to its credit with the reserve bank on the day of receipt of such items by the member bank.
per cent above the current discount rates for all drafts or debits
10. The reserve bank shall charge interest at
against member banks' balances when such balances are below the net amount of collected funds standing to the credit
of such members.
11. A daily statement of charges and credits will be sufficient advice and acknowledgment of all transactions.
GENERAL SUGGESTIONS.

The plans and forms prepared for the clearing functions of the Federal reserve system have
been so shaped that no change in principle will 130 necessary after branch reserve banks are
established. It has been thought wise not to arrange clearing plans for branch banks at this
time, since such banks will not be in operation for some time following the organization of the
reserve banks,and a short experience with the system will demonstrate to what extent branch
banks will undertake the clearing and collection of checks. It is probable that they will receive
checks on deposit from members in the same city only,and will receive checks on members from
other reserve banks only when such members are farther distant than one night's mail from the
Federal reserve bank of the district. Again, there may be branches established which may
clear a limited territory not easily accessible to or from the reserve bank. Such clearing, however,should be strictly local, and these branch banks should not receive items on deposit payable
in other districts, nor should other Federal reserve banks send them items except (perhaps)
those payable in the city where the branch bank is located.
Whatever may be the business transactions to be developed between a Federal reserve
bank and branch banks of another district, the clearing relations between the reserve banks
will not be altered, since all such transactions will be credited or debited on the books of the
main banks, proper advices forwarded, and adjustment made between the reserve bank and
its branch affected.
If that plan be deemed expedient, the work of clearing may be developed gradually. At
first the Federal reserve banks might limit the items received for collection to those payable
in the larger cities in the district, extending the service until the entire district is covered.
Drafts on all Federal reserve banks should be accepted from the first, but no items payable in
other districts should be accepted until the machinery is working smoothly-, and this service
should then be extended in the same manner that is suggested for each individual district.
Member banks on which checks might be accepted at the beginning should be permitted to
deposit items payable in other districts. This would enable them to meet the checks drawn
against them and would make it possible to develop the exchange relations between the
Federal reserve banks at the outset.
On account of geographical and railroad limitations situations will arise in every district
where it will not be feasible for member banks to send checks on other member banks to the
Federal reserve banks. Each such case will need to be adjusted according to conditions,
either through branch banks or by reciprocal relations established between the member banks,
settlement being arranged by a system of transfers. There are sections—as,for example, the
State of Mississippi—where the nonmember banks will so far outnumber the member banks
that a hardship will be imposed upon members unless they find relief through the assistance
of the Federal reserve bank of the district, which might establish local offices at many centers
and accept and collect checks on nonmember banks.
A list of member State banks ana trust companies should be sent to each member bank
and a monthly supplement showing additions furnished. A list of nonmember national banks
may also for a time be required. A large maR should be furnished all members at cost showing the district limits, mail time between Iederal reserve banks, variation in time used,
expressage and telegraphic rates, and such other information as may be found expedient.
It is recommended that a standard form of draft be required for use by each member
each reserve bank should adopt a different color
bank in drawing on its reserve bank, and if.
of paper upon which the drafts are to be printed it would promote convenience in assorting


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

26
these items and would tend to prevent misrouting. It would also serve as an example to the
banks and make it easier later to provide a color system applying to all checks.
Arrangements could be made with the Bureau of Engraving and Printing to prepare the
drafts on the Federal reserve banks for members at cost. Uniformity would thus be assured.
A large item of expense and a great source of annoyance and delay to all large banks is
the daily weighing and stamping of letters containing checks and drafts sent out each night.
This work will be greatly increased in the reserve banks and will constitute quite an item of
expense as to labor. The Post Office Department should be consulted and arrangements
made whereby the Federal reserve banks would be authorized to send out letters containing
checks and other remittances at first-class rates, the payment to be made by bulk weight.
This would also be a convenience to the Post Office Department, since it would not be necessary to test the letters as to the correct amount of postage used, and some economy would be
effected in the preparation and sale of postage stamps.
CIIECKS ON NONMEMBER BANKS.

There is nothing in the act that prohibits the acceptance by Federal reserve banks from
members of deposits of checks payable by nonmember institutions.. By accepting such items
to a limited extent clearings could be equalized at times between the reserve banks, thus
avoiding the transfer of gold to the clearing house. Also, exorbitant exchange rates on the
part of nonmembers could be checked wherever there is a member bank in the same town by
having such member collect checks on the nonmember bank or banks for other members
through the Federal reserve banks.
AN ALTERNATIVE PLAN.

Many suggestions have been presented with reference to the matter of handling the clearings of the Federal reserve banks. It has been found that probably the greatest difference of
opinion concerns the manner of dealing with the transit problem. In view of the fact that
the precise scope of the banks' operations has not been determinea, it is therefore considered
worth while to offer for consideration an alternative plan for the clearance of transit items
differing from the one set forth above. The main feature to be considered in this connection
will be found to relate to the time at which the items are to be credited to reserves by the
several banks.
In support of this alternative plan it is argued that if the purpose is to shape the operations of the Federal reserve banks so that the growth of the member banks will reflect itself
in the Federal reserve banks, it would appear advisable to afford special advantages to the
member banks which would encourage their maintaining larger balances than required by law
with the reserve banks.
Any plan which would assist in placing member banks in a more favorable position than
nonmember banks in the clearance of transit items at par and at the same time extend the
privilege to the member banks of an immediate settlement for such items should receive careful
consideration, inasmuch as it would without question stimulate more widespread interest in
the Federal reserve system and make its membership more attractive.
The essential point of the plan is:
Clearance at par, with immediate credit in the reserve accounts of member banks for such
items as they may forward for collection to the Federal reserve bank of their district and which
are drawn upon—
(a) Member banks of their own district,
(b) Federal reserve banks of other districts,
(c) Member banks of other districts.
In order that this may be effected, an immediate settlement for such items would be
obtained by the Federal reserve banks in the following manner:
MEMBER BANKS OF THEIR OWN DISTRICT.

Items drawn upon member banks located within the district in which the Federal reserve
bank is situated will be charged against their accounts upon the day of forwarding.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

27
FEDERAL RESERVE BANKS AND MEMBER BANKS OF OTIIER DISTRICTS.

1. A certain portion of the gold reserve of the Federal reserve banks would be concentrated
at Washington, preferably with the Secretary of the Treasury, as chairman of the board, who
would maintain a ledger record of the balance of gold reserve belonging to each bank.
2. The Federal reserve agents would authenticate each day the transit operations of the
Federal reserve banks and forward a descriptive statement to the Secretary of the Treasury,
which would enable him to record the debits and credits in the gold reserve of the different
Federal reserve banks. This would place the Secretary of the Treasury in a position to assemble
the entries of all the Federal reserve agents, with the result that the Federal Reserve Board
would maintain the gold reserves in 12 accounts, so that the transfers of gold would be by
book entries and shipments would be reduced to a minimum.
3. Each Federal reserve bank would carry an account upon its books known as
"Transit account," the account being upon a daily liquidating basis, as the balance resulting
from the transactions would mean either a credit or a debit to the reserve account of "Gold
reserve with Secretary of the Treasury." The credits to transit account would consist of
remittance letters received from other Federal reserve banks, while the debits would be the
total of the cash letters in process of being forwarded for collection to other Federal reserve
banks. The result of this would be, say, in the event that the Federal reserve bank of Chicago
received remittance letters for 'collection greater in amount than the total of the cash letters
forwarded by it, that the credit balance in the account would be liquidated by passing its
equivalent to the credit of "Gold reserve with Secretary of the Treasury," thereby reducing
the gold reserve to cover the transit transactions of the day.
From this brief outline it will be noted that an immediate settlement has been obtained
for the transit items and that "Outstanding time" has been eliminated by the expedient of
book entries in the gold reserve, such entries having been authenticated by the Federal reserve
agent.
Further details of the plan would be:
(a) The ledger record of the Secretary of the Treasury would be so designed that a carbon
copy would constitute a daily statement to the Federal reserve banks of the debits and credits
entering their balances of gold reserve. This would also enable the Federal reserve banks to
check such entries and likewise place them in close touch with the condition of the account.
(b) The credit and debit entries which would appear upon the daily statement of the
Federal reserve agent to the Secretary of the Treasury would be obtained by means of a form
prepared in quadruplicate for use of the bookkeeping department of the Federal reserve banks.
(c) Federal reserve notes would be listed upon a separate letter and included in the total
of the outgoing remittances.
(d) Unpaid cash items would be charged to the transit department, where they would be
listed upon a separate letter and included m the total of the outgoing remittances for the day.
(e) Cash letters from Federal reserve banks or member banks would be credited only when
received in time for use the same day.
(f) Checks received by member banks which are payable within a certain radius, to be
determined by the Federal Reserve Board, would not be forwarded for credit to the Federal
reserve bank of their district.
(g) The usual reciprocal accounts subject to check would be maintained by the different
Federal reserve banks for the purpose of collection of drafts, notes, coupons, etc.
(h) Telegraphic transfers up to a certain amount may be made through the reciprocal
accounts, while for larger amounts it would be advisable to use the existing subtreasuries or
the medium of book transfers in the gold reserve at Washington.
(i) Errors in listing, etc., would be adjusted by means of claim tickets, to be drawn and
approved by the auditor and signed by an officer of the bank.
(j) To defray the expense of labor, stationery, postage, depreciation of equipment, etc.,
it would appear advisable to assess the member banks upon the basis of the volume of business
handled as compared with the expense involved.
(k) In view of the special advantages afforded member banks under the proposed 'An,
and to confine such advantages to banks in the Federal reserve system, member banks should
be prohibited from depositing transit items which in turn have been deposited with them by
nonmember banks.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

28
The indorsement stamp of the member banks would be:
Pay to the Order of
Federal Reserve Bank, Chicago, Illinois,
May 28, 1914,
Indorsements Guaranteed
(Name of Member Bank)

while the indorsement stamps of the Federal reserve banks would be:
Pay to the Order of
Any Member Bank District No. 2
May 28, 1914,
Indorsements Guaranteed
Federal Reserve Bank
New York, N. Y.
Pay to the Order of
Any Federal Reserve Bank
May 28, 1914,
Indorsements Guaranteed
Federal Reserve Bank
New York, N. Y.

The accounting forms necessary to facilitate the prompt and efficient handling of this alternative plan will be found in portfolio of forms No. II, accompanying Appendix II, with which
this plan is correlated.
QUESTION OF TIME IN COLLECTION.

The usual method employed at the present time in the collection of transit items contains as a most important factor the matter of "Outstanding time," inasmuch as the banks
are obliged to await the receipt of returns covering the settlement of such items as may have
been forwarded to correspondents for collection. Theoretically speaking, this burden should
be borne by the depositors of the banks, as it would not be sound 'banking to permit the withdrawal of funds in the course of collection, but from a practical standpoint it would be difficult to educate depositors not to check against outstanding items and must SO regulate their
books that they may know at all times what their checking balance really is.
Under the first plan discussed above, namely, that of withholding outstanding transit
items from reserve balances of member banks until such time as the checks are theoretically
collected, the problem of outstanding time is admitted, but only partially solved by the decision
that in order to lessen the burden upon the member banks the outstanding time be cut in two;
that is, the checks will be permitted to enter the reserve balances of the member banks upon
the theoretical day of collection.
The first plan proposes as an offset to the deduction of transit items from the reserve
balances to defer charging items drawn upon member banks until such time as they have been
received, thereby establishinga basis of equality.
For the purpose of carrying out the project, each member bank, in addition to the Federal reserve banks, must, as already explained, be equipped with time schedules indicative of
the days necessary for the collection of checks, and upon the days of maturity, when the items
are supposed to he paict, entries would be made upon both the books of the member banks
and the Federal reserve banks, a plan which would enable the collected items to serve as reserve
for the member banks; while in like manner the checks which are forwarded by the Federal
reserve banks to the member banks, in accordance with the prearranged schedule, would be
charged against the balances of the member banks upon the day they are supposed to have
been received.
The committee has been at pains to secure criticisms upon the transit problem and finds
that the idea of withholding credit until items are collected is thought by many to have the
following disadvantages:
1. It places a discount upon such inland exchange as may require the Federal reserve banks
one day or more to collect.
2. It similarly places a comparative premium upon such exchange as may be drawn upon
member banks located within the cities in which the Federal reserve banks are situated.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

29
3. It might tend to discourage member banks fiom using the facilities of the Federal
reserve banks, with the result that they might either withdraw from the system or maintain
the exact amount of reserve required by the act.
4. It might render the transit system of the Federal reserve banks more complex and to
result in confusion, if not skillfully conducted.
5. It might entail additional labor.
6. It might mean the maintenance of subsidiary records, both in the Federal reserve banks
and in the member banks.
7. It might he difficult of proof.
8. The most carefully planned time schedule would be only approximate.
9. The return of unpaid items from one member bank direct to another, when the items
were originally forwarded by the Federal reserve hank for credit, might resat in error.
VIEWS OF A TRANSIT EXPERT.

By way of further elucidating the main points at issue in this matter the committee,withexpressing final opinion, thinks best to include in this report the following letter from an
out
eminent clearing and transit expert to whom this subject was referred with a request for an
opinion:
In compliance with your request, I have gone over the plan submitted to me regarding the method of handling
items through the Federal reserve banks, and beg to submit the following suggestions:
BANKS AND THEIR MEMBERS IN THE SAME CITY.
(1) REGARDING THE RELATIONS BETWEEN THE FEDERAL RESERVE

As Federal reserve banks will not handle items on nonmember banks, or receive any items from nonmember
clearing house in the city in
banks, there does not appear to be any necessity for a Federal reserve bank joining the its own city can be charged
which it is located. Items which the Federal reserve bank will have on member banks in bank for the redemption of
to their accounts with the Federal reserve bank and a time allowance made the member
unpaid items.
Items on member banks which fall into the hands of nonmember banks can be collected through the clearing
house as at present. The only service which would be rendered by the Federal reserve bank through the clearing
house would be the facility of member banks settling their balances with each other by checks on the Federal reserve
bank.
Checks on the Federal reserve bank which may fall into the hands of nonmember banks can be deposited in the
member banks and it is probable that nonmember banks in the Federal reserve cities will carry accounts with member
the Federal reserve
banks. They will either have to do this to get the items cleared or will have to become members of
system themselves.
this would
If the Federal reserve banks should allow clearings between nonmember banks and themselves,
remove a strong reason for nonmember banks becoming members.
Checks on member banks which are not members of the clearing house in the Federal reserve cities, should be
on outlying
received on deposit by Federal reserve banks. This would provide a place of redemption for items have to be
and whose items
member banks, many of which are located several miles from the downtown districtthe downtown member banks
for
collected either by mail or messenger, and would also provide a place of payment on to the member banks, as conwhich are not members of the clearing house. This would be a great accommodati
siderable difficulty is experienced in handling the items of outlying banks.
by
When clearing-house balances are settled through the Federal reserve bank, payment should be made no checks
as then
dispute
on the Federal reserve bank rather than by memorandum showing debtor and creditor balances,
would arise in making settlement.
(2) RELATIONS

THE FEDERAL RESERVE
BETWEEN THE FEDERAL RESERVE BANKS AND THEIR MEMBERS OUTSIDE OF

not
In assorting the items for deposit in the Federal reserve banks there doesthe seem to be any necessity to sort the
districts.
items according to the States, as State lines have not been used in outlining
the items so marked, these
With reference to "no protest" and "wire nonpayment" instructions, besides having the receiving bank would
as otherwise
instructions should also be written on the letter accompanying the items, item to prove they had been given.
claim the instructions were not given and the sending bank would not have the
to have a clearing
With regard to the clearing system to be used in each Federal reserve bank, if we are going
system, why not make it complete instead of going only half way? All items received by a Federal reserve bank
account of the
drawn on members in its own district should be credited when deposited to the reserveupon which the depositing
checks are
member bank and charged at the same time to the reserve account of the member banks Federal reserve banks, in
as
drawn, thus doing away with a lot of unnecessary work for the member banks, as well the
figuring the time taken for the items to reach their destination.
a minimum amount of clerical work,
The system for clearing these items should be as simple as possible, with not put them in the Federal reserve
the member banks will clear their items through outside banks and will
otherwise


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

31)
bank. The items going through the Federal reserve bank on points in its own
of the Federal reserve bank. They will only increase the balances of member district will not change the deposits
banks on one side and decrease them
on the other.
The reserve balances of member banks will increase in the Federal reserve bank just
as much as they will decrease,
and it is quite likely in the course of business that the reserve banks will carry
more
reserve with the Federal reserve banks, and, instead of having to continually make than the required amount of
up their reserve, there will be
just as much necessity for reducing the accumulations in the reserve account.
Items on member banks outside of the depositing member bank's district
reserve bank will have no account to reimburse itself from when the items are should not count as reserve, as the
deposited. A separate account should
be carried for each member bank which deposits items on member banks outside of
its own district, as these items
will be paid by a method described under the heading, "Relations between
Federal reserve
the transit account of the member bank will be charged and the reserve account credited. banks themselves" and
The transit accounts should be used only for items which are deposited on member
banks outside of the district
and on other Federal reserve banks.
Member banks should not draw checks on the transit account, but should
This would do away with any necessity for figuring a discount rate of interest draw all checks on the reserve account.
if the transit accounts should be drawn
below the amount of collected funds.
As the member bank itself is the only one which knows the amount its
reserve should be, the Federal reserve
banks can not ascertain whether a bank is drawing below its reserve or not, except
when reports are received from the
national-bank examiner. It is up to the member banks to control their own reserves
and to the bank examiner to see
that they live up to the law in this respect.
(3) RELATIONS

BETWEEN THE FEDERAL RESERVE BANKS THEMSELVE
S.

Items sent from the one Federal reserve bank to another should bear the
which handle, so that it may be known from the check how it has been routed. indorsements of Federal reserve banks
This is particularly necessary if items
are missent.
With regard to clearing items between the Federal reserve banks, a system is
suggested under which no Federal
reserve bank will have to open an account with another. Instead each l''ederal reserve
bank•will carry an account
with the Federal reserve bank to be selected as the central clearing bank.
The Federal reserve bank of Chicago is well situated to act as the clearing bank on account
of its central location
and the excellent transportation facilities between all the Federal reserve cities.
The suggested plan of carrying a portion of the gold reserve of the Federal reserve banks in
Washington would
require the shipment of an enormous amount of gold from all the Federal reserve
expense, as some of the gold would have to come from as far away as San Francisco, cities, which, besides being a great
would
,
the West, where it is needed for circulation. On the Pacific coast probably less than 10 also take away the'old from
per cent of the circulation is in
paper money.
Under the present United States subtreasury system gold is divided among
Francisco, and it would seem advisable to leave it where it is, so that when it hasnine cities from New York to San
to be shipped to member banks it
will not have to go far and the express rate will be reduced to a minimum.
It is also desirable to hold the expense of the Federal reserve bank down as far as possible,
there are twelve banks, each with a separate organization which will create a large overhead in view of the fact that
expense.
The Federal reserve bank which will act as the clearing bank will have little or no expense
its business and it would only make an unnecessary additional expense by depositing the attached to this part of
reserves in Washington.
Under the attached plan proposed reserve banks could make up the deficiencie in their
the clearing reserve bank by purchasing exchange, and gold shipments would be lesssnecessarybalances carried with
under this plan than
they would be if the plan is adopted of carrying the reserves in Washington.
Under the plan of clearing through a Federal reserve bank each Federal reserve bank would know
how it stood at
the end of each day's business, as the items would be cleared and settled for every
to increase balances with the clearing Federal reserve bank could be assessed on the day. The cost of buying exchange
member banks
items in each Federal reserve bank and could be added by the Federal reserve bank to the cost of which deposited the
handling
for the member banks, and in turn charged to the drawers of the checks by the member banks, provided the checks
they saw fit
to charge the drawers.
It is, however, likely that a member bank would absorb this cost itself, except where the drawers
do not carry
satisfactory accounts.
With regard to the incidental rules, regulations, etc., it does not seem desirable to fix a limit of twenty-five
miles
from each member bank, thus denying the member bank the privileges of the Federal reserve
for the collection of
items on banks located within twenty-five miles of the member bank. Inasmuch as the itemsbankbe charged
can
up to the
account of the bank upon which they are drawn when they are deposited, checks will reach the Federal
presentation in nearly all cases just as quickly as they would reach the bank upon which drawn if reserve bank for
sent direct by the
member bank.
Members situated in the Federal reserve cities should be permitted to deposit items on other
same city provided the depositing bank or the member bank upon which the checks are drawn ismember banks in the
not a member of the
local clearing house.
Referring to items bearing "No protest" and "wire nonpayment" instructions, the instructions should
appear on
the letters accompanying the items.
Provisions regarding charging interest when balances are below the net amount of collected
funds, should be
omitted, as previously explained.
It would be very unsatisfactory to the member banks if the Federal reserve banks when they first
start business
receive items on only certain banks in the larger cities in the districts. These banks would be
compelled to ship
currency or buy exchange to settle for the items charged to their account by the Federal reserve bank, as
they would not
in -turn be able to deposit items which they would have on all the other member banks in the district.
Instead of picking


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

31
out a number of the larger cities to start with, the Federal reserve banks could take a certain number of counties in
each State and gradually increase the number until the whole district was covered. In this way there would be very
little burden upon member banks, as the items would be cleared in certain zones in which the members would have
items drawn on each other.
With regard to checks on nonmember banks, I can find nothing in the act which permits the acceptance by Federal
reserve banks of items for deposit drawn on nonmember banks. If the act can be construed to permit Federal reserve
banks to receive such items, I do not think it would be good policy, as there would be a much greater chance for nonmember banks becoming members if the checks were not handled by the Federal reserve banks than if these facilities
were extended.
Checks on nonmember banks willc irculate at a discount and it is quite probable that nonmember banks will arrange
for a place of redemption for their checks through the clearing houses hi the Federal reserve cities in the effort to make
their checks circulate on a par with the items on member banks of the Federal reserve system.
BUSINESS OF FEDERAL RESERVE BANKS.

The business operations of the Federal reserve banks will be fundamentally of two distinct
kinds:
1. Rediscounting for member banks.
2. Purchasing specified kinds of paper in the open Market under the conditions provided
by the act itself. •
- From another point of view the business operations may be divided as follows:
1. Domestic transactions.
2. Foreign exchange transactions.
The subject may first be considered under the latter division and then inquiry may be
made as to how the business should be viewed from the point of view of the division or classification first suggested.
DOMESTIC BUSINESS.

The domestic business of the reserve banks will, as stated, consist primarily in the rediscounting of paper for member banks and in the purchase of paper in the open market. In
either ease the question is raised how the act must be regarded as applying to the nature of the
paper dealt in. As will be seen from a survey of its provisions, the framers of the measure
attempted to throw about the rediscount and open market transactions a series of very careful
and detailed restrictions intended to assure the liquidity and unquestionable conmiercial character of the obligations which were thus taken over by the reserve banks.
COMMERCIAL PAPER.

It is recognized that the question what should be accepted as commercial paper eligible
for rediscount under the act is one Of great difficulty, as Well as one which must inevitably affect
in a very profound why the operations of the reserve banks from the beginning.
Upon the indorsement of any of its member banks, any Federal reserve bank may discount notes, drafts, and bills
of exchange arising out of actual transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural,
industrial, or commercial pitrposes, or the proceeds of which have been Used or are to be used for Such purposes, the
Federal Reserve Board to have the right to determine or define the character of the paper thus eligible for discount
within the meaning.of this act.
Later (in sec. 14) Federal reserve banks are giten poWer to—
fiurchase and sell in the open market at home or abroad, either from or to domestic or foreign banks, firms, corporation, or individuals, cable transfers and bankers' acceptances and bills of exchange of the kinds and maturities by this
Act made eligible for rediscount, With or without the indorsement of a inember bank.

There are other provisions in the act which limit or Modify these fundamental clauses, but
consideration of them may be deferred for the present.
According as the "character of the paper thus eligible for discount" is *defined, the scope
of the business to be granted to the banks and to be undertaken by them will be greater or less
and the volume of their operations, and consequently the extent of their aid to the community,
Will be greater or less. Various questions of it specific nature, therefore, arise at once, of which
the following may be Mentioned:
1. What is commercial paper in the sense in which the term is used to-day?
.
2. is this popular definition Correct, and should it be accepted by the Reette Board?
8. If nOt cOrteist, tailall ifinfitdiaid thaiige in definition sa1cl be inaddl


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

32
4. Is there any need for different treatment of the paper made available for rediscount with
the indorsement of a member bank and that to be purchased in the open market?
5. What is a commercial, agricultural, or industrial transaction?
6. To what classes of paper does it normally give rise, and how can a banker assure himself
that a given piece of paper had arisen from such a transaction?
7. What distinction, if any, should be drawn between paper that grows out of such a transaction and paper whose proceeds are to be used in such a transaction ?
By answering these questions the basis will have been provided for a thorough analysis of
the provisions of the Federal reserve act in regard to the use of commercial paper as a basis for
rediscount.
The language used in the section of the Federal reserve act with reference to commercial
paper is modeled upon language used in many proposals of legislation which preceded the
reserve act and whose purpose was that of sufficiently limiting the types of paper presented for
rediscount so as to avoid the use of bank funds in two general classes of transactions. , The
language was intended to be negative rather than positive, and the two types of transactions
which were regarded with disfavor were the following:
(a) Those growing out of speculative transactions or involving the use of funds for promotion of speculation.
(b) Those involving the regular, steady provision of capital for investment purposes with
the idea of supplying to different enterprises an additional element of business support quite
different from the mere use of banking as an aid to the financing of current transactions.
Of course, in addition to these negative limitations it was intended by the language employed to prevent the banks from rediscounting paper that necessitated a too remote maturity
and naturally to avoid the rediscounting of paper whose soundness was not altogether assured.
At the present time commercial paper as employed by credit institutions and banks generally
includes the following types:
(a) Ordinary notes signed by an individual, firm, or corporation and promising to pay a
specified amount either on demand or at a stated time.
(b) Drafts secured by documents (bills of lading, etc.) which are discounted by banks and
which bear two commercial names.
(c) Ordinary notes signed by individuals, firms or corporations either on demand or on
time and protected by stock, bonds, or other collateral with a collateral loan agreement.
(d) Ordinary notes of the kind already specified protected by a chattel mortgage on crops
and the like.
Investigation shows that of these types of what is ordinarily called commercial paper to-day
the ordinary single-name paper constitutes a substantial proportion. Opinions differ as to the
relative amount of this paper as compared with other classes, but there is general agreement as
to its importance. Some large concerns estimate that fully 90 per cent of their business is
transacted on the basis of such single-name paper. The commercial transactions growing out
of or represented by such paper are in general as shown in the following hypothetical case:
A. purchases goods for his fall trade amounting to, say, $1,000,000 from the X. Y. Z. Co.,
of New York City. These are bought on open account with,say, ninety days' credit. A.gives
no paper in exchange for them, the seller having simply his general knowledge of A.'s credit to
protect him. The X. Y. Z. Co., however, offers A. a discount for cash within a specified time
(say, thirty days), and an additional discount for immediate cash (say within ten days). In
order to get this cash, A. applies to his bank, making a full statement of his transactions, and is
granted a loan for which he gives ordinary promissory notes. With the funds thus obtained
he pays off the X. Y. Z. Co., getting the advantage of the discout, then settles with the bank as
commercial"
the goods are taken up by consumers and paid for. The transaction is distinctly a"
one, and the paper growing out of it is commercial paper in the ordinary sense. In Europe,
however, the X. Y. Z. corporation would have insisted upon being paid by a note signed by A.
and would then have sold this paper or discounted it. Or A. might have induced his bank to
accept drafts from the X. Y. Z. Co. (properly protecting the institution), in which case the
paper would have been an acceptance bearing the name of the bank and the X. Y. Z. Co. It
is desirable to stimulate the growth of true commercial paper of the latter class as rapidly as
possible for several reasons. The closing up of the transaction by the giving of the paper is
in itself a good thing, leading to conservatism and caution in the business. The tendency of
this method is also to distribute loans much more widely, thereby creating a much better and


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

33
more even division of business among banks. The paper thus created can be sold and traded
in, and thereby a wider market, with much greater competition and consequently lower rates
of interest, can be secured. Furthermore,such paper bears on its face, ordinarily, the certification that it grows out of a real "commercial transaction." The effort should undoubtedly be
to work steadily toward a situation which would encourage the development of this kind of
paper and would eliminate or reduce as rapidly as possible the present method of trading on
the basis of one-name paper.
SINGLE-NAME PAPER PROVIDED FOR.

The conclusion thatseems to be necessarily reached in connection with this subject, however,
is that the Federal reserve act distinctly contemplates and provides for the use not only of
two-name but also of single-name commercial paper. This is seen in the fact that the act in
the sections already referred to provides for the rediscounting not only of paper whose proceeds
have been used in the particular classes of transactions referred to,but also of that whose proceeds
are "to be used" in that connection. At one time during the progress of the bill through
Congress the provision was even broadened by the insertion of words including for rediscount
such paper as might give rise to funds which may be used" for the purposes referred to in the
act. It is believed, therefore, that Congress clearly and unequivocally intended to recognize
under the provisions of the law both classes of paper. This, however, was upon the distinct
understanding that such paper, whether it bore one or more names, was not to be admitted to
rediscount unless it evidently arose from the classes of transactions referred to or was so clearly
for the purpose of providing funds for such transaction as to admit of no doubt.
In the second place, however, it is believed that paper carrying two names bears on the
face of it the evidence of a strictly commercial origin which single-name paper never can, without
collateral evidence, supply. There is, therefore, a prima facie case in favor of two-name paper
which does not exist in that of single-name, and the question is suggested how single-name
paper, when admitted to rediscount, as it evidently must be under the tern-s of the law, shall
be prevented from being used as a means to obtain current capital or to furnish the basis for
speculative operations. Various methods have been currently suggested, among thorn the plan
of requiring each piece of paper thus presented for rediscount to be accompanied by a certificate
on the part of its maker, or of the indorsing bank, or both, that it has originated in connection
with a transaction of the permitted kind. Another method that has been put forward is to
require such a general certificate on the part of each borrower, insisting that such certificate
be made once and for all, or perhaps at periodical intervals. Still another suggested plan is
that of employing a form of note which shall incorporate into its own text a statement that
it represents funds whose use is desired for a transaction of the permitted class. Of these
various suggestions the latter is perhaps the best, and there may be no harm in putting it into
effect, but neither it nor any of its predecessors would be likely to meet the requirements of
the case completely. It is believed that this end can be accomplished only by some process
that will give absolute assurance of the use of the funds advanced by the reserve banks in the
way contemplated by the law. Clearly, however, the absolute assurance that the particular
sum of money advanced by the banks on rediscounted paper has been used in the way prescribed can not be obtained in practice, nor is there any use in obtaining it, if there be certainty
that an equal sum drawn from the liquid resources of the concern receiving the advance is so
anlied. The purpose of the Federal reserve act is thus fundamentally satisfied if evidence
be given that the advances made are made for a commercial purpose as shown by the fact that
the person or concern in whose favor they are made is engaged in actual business of the kind
referred to and is in a liquid condition. This fact can be ascertained only by a direct audit of
the affairs of the concern, repeated as frequently as circumstances may require, in order to
renew the assurance of liquidity, which is regarded as the fundamental and essential test of the
good faith of the concern in making application for funds, not to furnish capital for new enterprises or to take the place of capital that has been sunk, but to carry through short-period
transactions.
A suggestion to which very considerable attention has been granted in responsible quarters
is that of establishing through action on the part of the Reserve Board a so-called "differential


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

34
rate" on commercial paper of the classes referred to, the rate required to be charged by Federal
reserve banks for the rediscount of single-name paper being fixed at, say, one-fourth of 1 per
cent or perhaps at one-half per cent higher than that to be charged for two-name paper, the
paper of the two classes being supposed to be of equal safety, and the difference in rate being
designed merely to discriminate in favor of two-name paper. This would probably be as
effective a means as any for accelerating the movement of the business community toward
the substitution of double-name for single-name paper. Precisely how great the discrimination in rate would have to be, and precisely how far it would need to be varied between the
several Federal reserve districts, is a question that can not positively be answered pending the
definite organization of the districts and the creation of the banks as working units in each of
them. The idea is merely suggested here as indicating a feasible and desirable mode of bringing
about the end in view, assuming of course that the application of the method is careful so that
no injustice may be done through the charging of the higher rate to the paper which is less
favorably regardedStill another plan is that of restricting the total amount of single-name paper admitted to
rediscount to a given percentage of the gross rediscounts of the reserve bank in question. This
plan has been carefully considered and is believed to be desirable. The estimates that have
been made by authoritative persons concerning the proper amount of single-name paper in
relation to two-name vary considerably, some taking the ground that not to exceed 25 per
cent of the total rediscounts should consist of single-name and others that not less than 50 per
cent might safely be allowed to consist of that kind of paper. It is believed that no definite
percentage of this kind applicable to the whole country could be fairly established. Inquiry
has shown quite conclusively that in some parts of the country there is much more two-name
paper than elsewhere, business habits having developed somewhat differently in different
communities. The restriction of the relative proportions of two-name and single-name paper,
through rules to be issued by the Federal Reserve Board and to be applied by the boards'of
directors of the several Federal reserve banks,can be scientifically developed when it is seen
through the early experience of the banks in about what proportions the two classes of paper
are presented for rediscount. It may easily appear that the proportions in which the paper
is offered to the Federal reserve banks will vary quite materially from those in which it has
heretofore been offered to individual or member banks. No definite relationship can be laid
down with certainty in advance. It can only be stated that wherever possible the proportion
of single-name paper allowed to figure in the rediscounts of a Federal reserve bank should be
confined to the lowest basis consistent with the welfare and convenience of the business community.
A proposal worthy of mention in this same connection, hut requiring care in its consideration, is that note brokers who sell single-name paper to banks of the Federal reserve system
shall be rectuired personally to endorse the paper they thus dispose of. In support of this
proposition it is urged that the custom prevailed in Europe and has been found effective there.
This is only partially true, conditions being quite different abroad from what they are here,
but it is probably the case that everything possible should be done to stimulate a greater degree
of responsibility on the part of Rote brokers. At present there are many individuals and concerns in the note-broking business whose financial responsibility may be a matter of some doubt
and whose principal effort is to dispose of as much paper as they can, thereby securing for
themselves the largest possible amount of commissions. On the other hand, it seems hardly
desirable to take a step that would tend to produce a condition of monopoly or semimonopoly
in the note business. To require indorsements of the kind referred to would undoubtedly
tend to arive the smaller concerns out of business and would likewise tend to promote the
formation of very large corporations organized for the purpose of lending their signatures to
commercial paper, thus making it available for use by reserve banks. In this same group of
suggestions is the recommendation that the note broker whose paper is purchased by the
reserve banks through member banks shall be required to be regularly examined and audited
by a satisfactory accountant. There is no objection to this requirement provided that it be
properly applied and that the audit or examination be made under conditions that will not
be unreasonably onerous or of a nature to entail unnecessary or excessive expense upon the
broker.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

35
GENERAL SUMMARY.

Summarizing these suggestions, therefore, we may first enumerate the recommendations
which it is believed are at all events not feasible at the present time.
1. Exclusion of single-name paper whose proceeds are "to be used" for commercial purposes.
2. Narrow definition of the words "agricultural, commercial, or industrial purposes" or
transactions.
The purposes which should undoubtedly be sought and the recommendations corresponding
thereto are as follows:
1. Exclusion of all paper of every kind from rediscount unless those responsible for it are
able to make good the contention that its proceeds are intended for facilitating or carrying
out a genuine current business transaction of a kind that shall be self-liquidating within the
period set by the language of the act.
2. Requirement of all possible classes of information on the part of bankers, note brokers,
and others bearing upon the origin of the paper offered for rediscount and the purposes to
which its proceeds are to be applied.
The detailed methods that have been suggested for the attainment of these objects and
which it is believed will prove more or less useful are as follows:
1. Regular audit of firms or corporations placing single-name paper on the market in order
to assure their absolute liquidity and solvency and the liquidity of its assets.
2. Regular audit of note brokers in order to insure absolute knowledge of broker's responsibility.
3. Indorsement by note broker of all paper passing through his hands and ultimately presented for rediscount.
4. Restriction of single-name paper to specified percentage, say 25 to 50 per cent of total
paper rediscounted by a reserve bank.
5. Establishment of differential rate of rediscount for single-name and two-name paper
in order to favor the latter type of security.
6. Use of specified form of note or certificate intended to indicate type of transaction
giving rise to paper.
The following points at least are, however, deemed essential in determining the practice
to be followed by reserve banks:
1. Commercial paper must be broadly defined as including two-name paper given in lieu
of cash for goods sold and bearing the name of maker and indorser, if discounted, and singlename paper which is largely discounted or sold to provide cash in anticipation of future purchases and sales. Where the price of the commodity involved has been fixed, two-name paper,
so far as the seller is concerned,represents a closed transaction, whereas in the use of single-name
paper, representing as it does principally money borrowed for future transactions, the price
remains to be fixed by seasonal demand and trade limitations.
2. From an economic standpoint, two-name paper may be regarded as having no inherent quality that will develop inflation, while single-name paper, involving, as previously
stated, future transactions, may (though not necessarily) promote speculation and thus develop price inflation. Member banks therefore, should carefully analyze the business on which
'
single-name paper is to be predicated, differentiating sharply,for purposes of rediscount, between
that which is to be used to finance accounts receivable or strictly seasonal requirements, and
that which is to finance a floating debt or be used for the extension of business that can not be
readily liquidated.
3. Single-name paper, secured or unsecured, must bear the name of a solvent party whose
responsibility is secured by the filing of a satisfactory statement made within one year prior to
the date of the discount or by the filing of a certified copy of such a statement by a responsible
person who is in possession of the original.
4. Such paper must bear the indorsement of a member bank and be accompanied by a
statement attached to its schedule of application for rediscounts, signed by an officer of said
bank, to the effect that to said officer's best knowledge and belief the proceeds of the notes
discounted have been or are to be used for commercial, industrial, or agricultural purposes
of a current nature. Such schedule of application must be classified (on a standard form), giving
the kinds of business supported by individual items.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

36
5. Such paper must have a maturity at the time of 'discount of not more than 90 days,
except in the case of notes, drafts, and bills drawn or issued for agricultural purposes or based
on live stock, which may have a maturity of not exceeding six months. The total amount of
such six months' paper to be taken by any one Federal reserve bank, however, shall not exceed
per cent of the capital of said bank.
6. Any Federal reserve bank may discount acceptances (bank or other than consignee)
based upon the importation or exportation of goods and which have at the time of discount a
maturity of not more than three months and are indorsed by at least one member bank. The
amount of acceptances so discounted shall at no time exceed one-half the paid-up capital and
surplus of the bank for which the rediscounts are made.
7. 1 wo-name paper must bear the names of two solvent parties, the maker and
the indorser, the responsibility of one being reasonably assured by customary credit statements, or the opinion of an officer or director of a member bank formally stated and filed.
8. Such paper must bear the indorsement of the member bank and. be submitted on a
schedule separate and apart from that used for single-name paper, but similarly classified as to
the kinds of business involved.
9. Such paper must have a maturity at the time of discount of.not more than 90 days,
except as provided by the act for six months' paper based upon agricultural products or live
stock.
10. It is recommended as a general practice that at least one party involved in the discount of two-name paper be required to file a statement with the member bank.
FUNCTION OF OPEN-MARKET OPERATIONS.

At this point some attention may be given to the 'question of open-market operations. Section 14 of the Federal reserve act grants the Federal reserve bank power to deal in gold coin
and bullion, to buy and sell bonds and notes of a public character, to purchase and sell bills of
exchange with or without its indorsement, and to establish such agencies as it may deem best
for the purpose of dealing in bills of this kind. It calls for the formation of certain rules and
regulations by the Federal Reserve Board, involving—
(a) Open-market purchases of commercial paper and exchange;
(b) Government bonds and short-time Government, State, municipal, and other
bonds, notes, and bills.
With reference to these classes of business the following points are noted:
(a) The scope of open-market operations, so far as the question of individual and corporate credit is concerned, must rest largely with the purchasing bank, subject to suggestions
based upon analyses by the credit department of the Federal Reserve Board. It will be necessary, however, for the Federal Reserve Board from time to time to make regulations involving—
(1) The amount of any particular paper permitted to be hold by any one bank and the
aggregate amount of such paper to be held by all the Federal reserve banks;
(2) The total amount of all open-market purchases held by all Federal reserve banks.
The necessity for such regulations is apparent. The open-market section of the bill was
primarily provided to give the Federal Reserve Board the necessary economic control of the,
domestic money market and to preserve a proper equilibrium in international relations. Specific rules formulated in advance on this general subject are, of course, impracticable. The rules
when established will, moreover, have to be varied somewhat from time to time.
(b) The Federal Reserve Board should from time to time formulate rules and regulations
covering purchases and sales involved in subdivision (b) of article 14, limiting the volume of
securities which it would be appropriate for any one Federal reserve bank to purchase, and
also in contemplation of the aggregate volume held by all such Federal reserve banks. The
intent of the act is to have such securities purchased, with the exception of Government bonds,
somewhat approximate the fluid quality of commercial paper. It will therefore be inadvisable for banks to purchase any revenue bills or bonds that are issued in the aggregate in excess
of the amount of revenues received by the respective States, districts, or municipalities beyond
the amount which experience shows was received on the.annual average of the last preceding
two years. No bills or bonds should be purchased which are not issued in anticipation of
specific levies or revenues. Federal reserve banks should file with the Federal Reserve Board
comprehensive statements involving the experience of all districts and municipalities in rela-


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

37
tion to taxes and revenues received, and amounts borrowed for the last preceding two years,
when purchases are contemplated.
Banks desirous of purchasing irrigation, drainage, and reclamation district obligations
maturing within six months shall, prior to making such purchases, file with the Federal Reserve
Board a statement of revenues, expenditures, and borrowings of such districts for the last preceding three years. In all cases both as to State, municipal, irrigation, drainage or reclamation short-time instruments, where any question is involved not herein covered, specific action
will be taken by the Federal Reserve Board based upon the facts presented.
The open-market provisions of the act are of very large importance in two ways:
(a) In permitting Federal reserve banks to place their resources at the disposal of constituent or member banks even when such constituent or member banks do not apply for
rediscounts inasmuch as the law allows the reserve banks to buy the paper directly in the
open market and thereby to insure the placing of its funds in active use should occasion demand.
(b) In permitting a reserve bank in one district which has surplus funds to relieve the strain
upon reserve banks in other districts by buying such surplus of paper as may have come upon
the market in those districts, thereby preventing banks in these places from being compelled
to refuse to grant rediscounts in cases where the supply of paper is in excess of the capacity
of the banks to take care of at the seasons of the year when an exceptional degree of strain has
made itself felt.
Much has been said of the effect of the open market transaction in enabling the reserve
bank to get funds out into active use at times when they would otherwise be out of use. There
are some limitations upon this idea that have probably not been sufficiently considered. Under
ordinary circumstances, the reserve banks will not compete with their own members, and while
they may be expected to compete with certain individual banks even among their own stockholders under special or peculiar circumstances, they will naturally do so only when such action
is rather urgently demanded. A quite different condition of affairs will exist with reference
to the open market transactions, relating to paper put out in other districts. In so far as this
represents a field of activity which is not occupied, or occupied only in a limited degree by
individual banks, the reserve banks may be expected to become active buyers of paper originating in such other districts.
FOREIGN EXCHANGE OPERATIONS.

The second principal element in the business of the Federal reserve banks will be that of
dealing in foreign exchange and of transmitting funds abroad. Precisely what relation this
business will bear to the general business of the reserve banks themselves can not be predicted,
and will undoubtedly vary considerably from bank to bank, according to the particular type
of business developed in each of the several institutions. At some of the banks the foreign
exchange service may at times be of preponderating importance while at others it is entirely
possible that the work may be sporadic or incidental. In the case of some of the banks it may
be found desirable to conduct the exchange operations entirely through the medium of other
reserve banks.
Nevertheless the conduct of the exchange operations for the system as a whole will be of
primary importance and will amount to a general control of the foreign financial and monetary
relationships of the United States.
The provision of the Federal reserve act relating to foreign exchange operations is found
in section 14, where it is provided that the banks shall have authority:
To open and maintain banking accounts in foreign countries, appoint correspondents, and establish agencies in
such countries wheresoever it may deem best for the purpose of purchasing, selling, and collecting bills of exchange,
and to buy and sell, with or without its endorsement, through such correspondents or agencies, bills of exchange arising
out of actual commercial transactions which have not more than ninety days to run and which bear the signature of
two or more responsible parties.

The banks are also authorized—
To buy and sell at home or abroad bonds and notes of the United States and bills, notes, revenue bonds and warrants with a maturity from the date of purchase of not exceeding six months, issued in anticipation of the collection
of taxes or in anticipation of the receipt of assured revenue.

In section 13, it is provided that—
.
The rediscount by any Federal reserve bank or any bills receivable and of domestic and foreign bills of exchange,
and of acceptances authorized by this act, shall be subject to such restrictions, limitations, and regulations as may be
imposed by the Federal Reserve Board.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

38
It is thus seen that the Federal reserve act makes express provision not only for dealing
in foreign exchange and securities, but also for the mechanism necessary for such exchange
transactions and finally for the regulation and control both of the foreign agencies and of the
transactions themselves by the Federal Reserve Board through its regulations.
It is therefore necessary to indicate first of all the conditions under which the reserve
banks should operate abroad and their relations to the member banks engaged in similar business as well as to one another.
It is recommended that above all in dealing in foreign exchange the Federal reserve banks
should act together as a unit. While this is not necessary, and while the reserve banks could
undoubtedly do a successful foreign • exchange business independently of one another, each
establishing its own agencies as it saw fit, it is believed that -better results would be obtained
if the reserve banks at least had general knowledge of one another's transactions and were
required to act together so far as conditions would permit. It is, therefore, recommended that
the policy to be prescribed with reference to foreign exchange by the Federal Reserve Board
shall be uniform and that there shall be as little opportunity as possible for the development
of conflicting or unnecessarily duplicating orders and policies. Moreover, it is believed that
the establishment of agencies by each and every one of the banks would be an unnecessary
expense. It is, therefore, suggested that in selecting agents or in establishing offices abroad,
the reserve banks shall be required to act jointly. Joint offices for all the reserve banks will
ultimately need to be established in each of the principal financial centers in foreign countries,
and pending the time that such joint office is established, it is recommended that consent be
given only to the establishment of agencies which shall jointly act for all of the Federal reserve
banks. The details of this proposal will be fully considered in connection with the question
of establishing branches in general.
GENERAL SCOPE OF FOREIGN OPERATIONS.

It is possible that the foreign operations of the Federal reserve bank will not be large at
'first. The ordinary clearance operations of commerce are handled eagerly and adequately
by banks already engaged in foreign exchange. Except in cases of stress, all exchange is easily
absorbed at the current price. It will be necessary, however,for the reserve bank to stand ready
to negotiate all bills of exchange that may come to it from member banks in outlying communities or from other reserve banks. Rather should the position of the reserve bank in this field
be that of an overflow reservoir, recouping its balances from the credits created abroad by
other banks engaged in such business and making such advances from time to time as may be
necessary to facilitate absorption of exchange or protect gold reserves—that is to say, not interfering with member banks, but operating rather from a broad economic standpoint. The
reserve bank can act as the medium through which the necessities of the post office for foreign
exchange to meet the requirements of the foreign money order division may be liquidated and
otherwise as foreign fiscal agent of the Government, but must give due consideration to the
development of offsetting business. It may be needless for many of the reserve banks to enter
the foreign field, much depending upon their cooperation through a common agency. It is a
matter of grave doubt as to whether it will be necessary for more than one to do so at the start,
as even under present conditions the foreign exchange market for all banks engaged in foreign
exchange wheresoever located is in New York City. However this may be, the relations of the
Federal reserve banks and either member or nonmember banks in the foreign exchange field
should be sympathetic. The Federal reserve bank should have perfected all the machinery to
make it a dominant leader to marshal the collective forces of the exchanges in times of stress.
FOREIGN REPRESENTATIVES.

Arrangements will necessarily be made as soon as feasible to secure banking connections
in all of the principal banking centers of the world. It will be unnecessary to establish actual
branches in all those places where there are already good banking facilities, unless the Federal
Reserve Board should deem it wise to do so after a general survey of the whole field. The existing facilities afforded by foreign banks or even by branches of American banks will afford all
that would be supplied by an independent branch. Whether it will be deemed best in spite
of this fact to create actual branches with independent banking houses and assigned capital in


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

39
all places where good banking facilities already exist is a matter of policy as to which no definite
statement can here be made. The general question of branches and the creation of such branches
abroad will be given special attention at a later point, to which attention is accordingly directed.
It will at all events be found that in not a few places the appointment of representatives will
probably be necessary, owing to the fact that adequate banking facilities for the promotion of
American commerce are not available there.
CONDUCT OF BUSINESS.

It is recommended that the services of a foreign exchange expert of known ability who is
at the same time familiar with banking in its broadest sense shall be secured. This expert
should probably be given the rank of an officer corresponding to that of a vice president in an
ordinary bank. Under his direction and through the medium of a deputy acting as his assistant
the foreign operations of the bank should be carried on. This foreign exchange expert will find
it desirable at the outset to secure, without delay, connections, whether through the creation
of branches or not, as may later be decided, with the principal European centers, particularly
including London, Paris, Berlin, Hamburg, Frankfort, Antwerp, Amsterdam, Rome, Naples,
Vienna, St.Petersburg, and Zurich. Exchange should be acquired by him with prudence and
judgment as to money market conditions at all points, the major portion of resulting balances
being of course held in London. His funds thus obtained should be employed in the purchase
of short-term paper and bills of exchange, as specified under the law, according as business requirements demand. The rule to be observed, however, should be that of having the holdings
of exchange in the most liquid form. Dealings in exchange should be carried on both at home
and abroad, but it would probably be inadvisable to enter the field as an aggressive operator.
The policy to be constantly observed is, unquestionably, that of providing a secondary reserve
for the reserve bank. Precisely how much should be regularly invested in exchange with this
object in view can not be laid down in any definite manner, and, as will be later indicated,
could at most be limited to a given percentage of the operations of the reserve bank, although
even that is not in this discussion definitely fixed. The funds invested in exchange will of course
return an income, but the principal object should be, as already stated, that of providing the
secondary reserve referred to. It is probable that ultimately a considerable quantity of ordinary excaange operations will be undertaken by the reserve banks engaged in this branch of
business but no steps should be taken to force such a growth, it being permitted rather to gain
a natural development incident to the regular progress of the institution carrying on the operations.
For the purpose of making clear the details of policy which must be observed in carrying
on the foreign exchange business of the reserve banks upon the basis already described, a complete set of regulations designed to govern the management of the foreign exchange department
of the reserve bank has been worked out as an element in this discussion.
They are as follows:
I. MANAGER.

(a) There shall be in charge of the foreign exchange department of each Federal reserve
bank,if such a department be developed, an official to be known as the "Manager of the foreign
exchange department," selected by the board of directors, who shall receive an annual remuneration to be decided by the board.
(b) This official shall have been actively engaged and be experienced in foreign exchange
operations.
(c) Upon appointment the official mentioned shall furnish bond of good and sufficient
surety in amount of $ ______.
U) The duties of the manager of the exchange department shall be to control the funds
of the reserve hank carried in foreign exchange. He shall have entire charge of the buying
and sellina of all checks, drafts, demand or time, cable transfers, bills of exchange, gold coin,
6
bullion, and any other instruments, securities, properties, and commodities that the reserve
bank is authorized to buy or sell under the law, subject to the regulations hereinafter provided.
(e) The manager shall have the power to employ, through the channels provided in the
regulations, such assistants as he may deem necessary to carry on the business of his-department. He shall make such recommendations as he may deem advisable for the expansion or
improvement of the bank's foreign exchange operations to the president.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

40
(f) He or his assistants shall, through the usual clerical channels, submit daily to the president a report of his operations, showing purchases and sales of exchange, prices at which such
purchases and sales were made, and the disposition of the reserve bank's foreign balances. It
shall be his duty, or that of his designated assistants, to authorize all transaction.s, approving
all purchases, sales, and other operations, subject to the rules and regulations of the board of
directors. There shall also be submitted to the board of directors and to the Federal Reserve
Board a monthly report and such other reports as the Federal Reserve Board may deem advisable
or necessary.
(g) He shall have general supervision, under the direction of the president, of the exchange
operations of all of the bank's foreign agencies and branches. The board of directors shall
arrange for systematic reports from all foreign agents and managers of foreign branches.
(h) There shall also be selected by the board of directors an assistant manager, who shall
act as general assistant. Before receiving appointment he shall comply with the requirements
of paragiaphs B and C. He shall receive a compensation to be decided by the board.
II. FUNDS TO BE INVESTED IN FOREIGN EXCHANGE.

(a) Unless at the express direction of the board of directors or the Federal Reserve Board,
there shall at no time be invested in foreign exchange an amount exceeding _ _ __ per centum
of the reserve bank's demand liabilities after deducting from the total of such demand liabilities
the total of gold and lawful money on hand or in transit to the bank, such sum invested, hownot to include the working capital of any branch that may be established in accordance
ever,the law. Any Federal reserve bank not regularly engaged in foreign exchange operations
with
may, at the discretion of its board of directors, invest in foreign exchange or transact any and
all foreign business eligible under the law and clear such transactions with foreign countries
through the medium of the foreign department of any other reserve bank that may be actively
engaged in foreign operations, and such other Federal reserve bank shall separately record any
and all foreign transactions it may perform for any reserve bank independent of its own operations and shall render a separate and distinct accounting therefor and may receive a compensation from such other Federal reserve bank for so acting, such compensation to be fixed by the
Federal Reserve Board on the basis of the periodical turnover.
(b) When gold coin or bullion is purchased in foreign countries out of the amount invested
by a reserve bank in foreign exchange for the purpose of importation into the United States,
such amount shall immediately be deducted from the total carried as foreign exchange and shall
be regarded as part of the gold reserve of the bank.
(e) When importations of gold are desired, at the discretion of the board of directors or at
the direction of the Federal Reserve Board, banks or bankers may be employed to import gold.
for the account of a Federal reserve bank. In such cases the gold coin or bullion must be consigned to the Federal reserve bank making the advance, and shall be regarded as part of the
gold reserve of the Federal reserve bank when in transit.
(d) No clean bill of exchange drawn on parties other than banks or bankers shall be
negotiated by a Federal reserve bank without the indorsement of a member bank.
(e) Clean bills of exchange drawn on banks or bankers at longer time than sight (such
maturities, however, not to exceed ninety days sight) may be negotiated by a Federal reserve
bank upon the guarantee of acceptance of a member bank.
(f) Documentary bills of exchange drawn on parties other than banks or bankers at longer
time than sight, provided, however, at not longer than ninety days sight, and where the documents are deliverable upon acceptance, may be purchased by a Federal reserve bank only with
the indorsement of a member bank.
(g) All documentary bills of exchange drawn on banks or bankers of whatsoever tenor in
accordance with section 13 of the Federal reserve act may be negotiated by the Federal reserve
bank with the guarantee of acceptance of a member bank.
(h) Cable transfers, checks, drafts, and bills of exchange drawn by responsible banks or
bankers, at the discretion of the manager, may be purchased by the Federal reserve bank, subject to regulations of the board of directors.
(i) The liability, direct or contingent, unless secured, of any bank or banker member or
per centum of the capital, surplus, and undivided
nonmember shall at no time exceed
profits of such bank or banker where the amount of capital, surplus, and undivided profits is
published by requirement of law. Where such capital, surplus, and =divided profits is not so


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

41
.
determinable to not exceed an amount to be fixed as a line by the board of directors, subject
'
to review by the Federal Reserve Board.
(j) The outstanding liability of any foreign individual, firm, corporation, bank, or banker,
by reason of acceptance on unmatured bills of exchange held or rediscounted by the reserve
per centum of the capital, surplus, and undivided profits
bank shall at no time exceed
of such bank or corporation, and where the capital, surplus, or undivided profits are not so
determinable, to not exceed an amount to be fixed by the 'board of directors, subject to review
by the Federal Reserve Board.
(k) The liability of any individual, firm, or corporation as drawer or indorser of any check,
draft, bill of exchange, or other instrument negotiated by a Federal reserve bank in its foreign
operations shall not exceed a line to be fixed by the board of directors, subject to review by the
Federal Reserve Board, and a record shall be. kept of the total liabilities of each individual
firm, or corporation.
(/) A Federal reserve bank shall not purchase and have outstanding at any time in unmatured drafts drawn on foreign points, where the documents underlying such drafts aro to be
__ per centum of the total amount,
surrendered against payment only, an amount in excess of
available for use in foreign exchange operations by such Federal reserve bank.
(m) A Federal reserve bank shall purchase foreign gold coins of fineness fixed under the
laws of the country whore such coins were minted at the mint price of $20.6718 -I- per fine ounce
whenever such coins are presented to it, and such coins whensoever and howsoever acquired
shall constitute a part of the gold reserve of the bank; providing, however, that at no time does
per centum Of the amount of gold
such amount of foreign gold coins exceed in amount
the bank is obliged to maintain by law.
(n) Whenever a Federal reserve bank purchases cable transfers from member or nonmember
banks or bankers, or any other parties whatsoever, payment for the equivalent shall not be made
until the reserve bank is advised by telegraph of the receipt of such payment by its foreign
agent or branch, unless otherwise guaranteed.
(o) Whenever the Federal reserve bank sells cable transfers it shall be in receipt of payment
before it may direct such transfer.
(p) On all purchases or sales of bills of exchange and other instruments except cable transfers by a reserve bank, payment shall be made in the case of purchase to, and in the case of sale
by, a Federal reserve bank immediately upon delivery of the bills of exchange or other instruments purchased or sold.
(q) Any or all of the restrictions imposed by these regulations may be temporarily suspended by the Federal reserve agent, subject to review by the Federal Reserve Board.
III. CORRESPONDENTS.

(a) There may be selected as required in each principal banking center of the world at
least ono bank or banker as correspondent, subject to the consent of the Federal Reserve Board.
From time to time, or as the requirements of increased business may direct and subject to the
consent of the Federal Reserve Beard, the number of correspondents in any banking center
may be increased to two, except as provided in the following paragraph.
(b) Wherever possible all correspondents of tne Federal reserve banks shall be branches of
American banks established in such foreign banking centers, and where there may be more than
one branch of an American bank the business of the Federal reserve bank shall be distributed
among such branches in the approximate ratio that the several banks' capital and surplus shall
bear to each other.
(c) Such correspondent shall render a daily report of receipts, disbursements, discounts,
and any and all operations undertaken at the direction of or for the account of a Federal reserve
bank.
(d) Such correspondent shall render a monthly statement of the account of each Federal
reserve bank showing in detail all entries to its account and a memorandum of all interest
accrued and charges, showing such charges in detail. It shall further send a monthly schedule
of all bills of exchange, drafts, or other instruments, or other property that it may hold on
behalf of a Federal reserve bank, indicating amount, drawee or acceptor, maturity, and collateral to such instrument, if any.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

42
(e) Such correspondent shall once each week provide each reserve bank with a statement of
the contingent liabilities of the reserve bank by virtue of indorsement on bills of exchange or
other instruments which have been discounted or sold on behalf of and for the account of the
reserve bank.
(f) There shall exist between the reserve banks and correspondents a secret code suitable
to the transaction of their operations and messages under such code shall be protected by a,
cipher in the possession of the senior officers of the reserve banks, the managers, and their immediate assistants.
IV. BRANCHES.

(a) The board of directors of each Federal reserve bank may from time to time, subject to
the consent of the Federal R eserve Board, est4b1ish such foreign branches as may be deemed
necessary or expedient, and unless at the express direction of the board of directors or the
Federal Reserve Board each branch shall use (as fixed working capital) an amount net in excess
of
__ per centum of such reserve bank's demand liabilities after deducting from such liabilities the amount of gold and lawful money on hand or in transit to the bank.
(b) All foreign branches shall be officered by the following., seniority in the order given:
1. Manager.
2. Assistant manager.
3. Accountant.
(e) These officers shall receive remuneration to be fixed by the board of directors.
(d) The manager shall have entire charge of the branch., subject to the direction of the
Federal reserve bank or banks creating such branch. His duties shall consist of selecting the
branch's investments, developing new business, buying and selling bills of exchange, gold coin,
bullion, obligations of the United States, or any other security eligible by law to be negotiated,
subject to the regulations of the home office. He and his assistant shall be responsible for all
monies, securities, and any and all assets of the branch and shall make such provision for their
. safeguarding as may be deemed necessary.
(e) The assistant manager shall have charge of the staff and the office, and shall assume
charge in the abaence of the manager.
(f) The accountant shall have entire charge of the accounts and records of the branch.
He and his assistant or assistants shall make such examinations from time to time as they may
deem necessary or as they may be directed. He shall render a daily balance sheet to the manager and shall submit to the reserve bank such statements of the affairs of the branch as are
required by the regulations. In the absence or disability of both the manager and assistant
manager, the accountant shall assume charge of the branch.
(g) A branch shall make a daily report by mail of its operations to the reserve bank,
accompanying which shall appear the copy of the balance sheet of such branch as of the close of
business the preceding day, and shall submit a weekly report of all contingent liabilities by
endorsement of bills, etc., sold or discounted, and shall further submit a list of all liability or
individuals, firms, or corporations to the branch whether as drawer, endorser, guarantor, or
acceptor.
(h) On the last day of each calendar month the books of a branch shall take up in its profit
and loss accounts and expense accounts all interest, commissions, expenses, and all other
determinable incomes or expenditures, and an analysis thereof shall be submitted over the
manager's signature to the reserve bank in duplicate—one copy to the president of the reserve
bank, and the other to the manager of the foreign-exchange department.
. (i) A schedule of all hills of exchange, drafts, checks, notes, or other securities and prop'erties held by the branch shall be submitted once each month; such schedule shall indicate
amount, drawee, acceptor, or payor, tenor, maturity, and collateral if any.
(j) As of the close of business the last days of February, May, August, and No veml-er,
the books of each branch shall be closed, clearing into profit and loss all amounts standing or
accrued as income, or expense, and after charging off all bad debts, the balance in profit and
loss shall be transferred to the reserve bank.
(k) All losses shall be reported to the reserve bank over the signatures of at least two
officers. Assets of questionable value shall be reported to the reserve bank, and upon confirmation from the reserve bank may be written off.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

43
(/) No clean bill of exchange, unless drawn by a bank or banker,shall be purchased by any
branch except with the consent of at least two of the three officers of the branch or a line on
any name may be fixed by at least two officers of the branch within which line the clean bills
of any individual, firm, or corporation may be bought. All matters of credit and responsibility
of parties shall be subject to the concurrence of at least two officers and further subject to approval by the home office.
(m) No draft drawn under a letter of credit may be purchased by any branch unless a
specimen of letter of credit and signature of the party who issued it are on file, or unless confirmation has been received direct that such a credit is open and that drafts thereunder may be
negotiated.
(n) The manager may at his discretion deal in or make loans on gold coin or bullion, and
shall cause to be rendered to the reserve bank a detailed statement of such operations. The
statement to indicate face value, weight, fineness, and specific value.
V. ACCOUNTING OF FOREIGN-EXCHANGE DEPARTMENT.

(a) The regulations covering the accounting system of the Federal reserve bank shall
apply to the branches.
(b) The books of the foreign exchange department shall be as follows: 1. General ledger;
2. General balance sheet; 3. Journal; 4. Cash receipts book; 5. Cash disbursements book; 6.
Agency ledger; 7. Branch ledger; 8. Liability ledger; 9. Remittance records • 10. Draft records, and any other books that may become necessary from time to time in the opinion of the
audi
(e) All books shall be bound books, except in cases where expediency requires it, the books
may be loose leaf, to which exceptions, however, the auditor must concur, and such provisions
that he may make in the use of loose-leaf records shall be complied with.
(d) The general ledger of the department shall carry the control on all accounts in the
department, showing each account separately, except in such cases as the liabilities (see par. N)
wherein one amount may be shown to control all accounts. The general ledger shall be posted
daily in ink and each page footed in ink and carried forward.
(e) The general balance sheet shall be a columnar book showing the daily balances in
each account on the general ledger.
(f) The journal shall take up all entries not properly handled in the cash receipts or disbursements books, remittance or draft records. It shall be a columnar book and after proof,
a recapitulation thereof shall be taken off and handed to the general bookkeeper.
(g) The cash receipts book shall record all receipts of cash or checks from whatsoever
sources. All receipts of cash unless controlled by preceding entries, shall be acknowledged, a
copy of which receipt shall be taken up by the officer signing the original, and handed to the
auditor. After proof each night a recapitulation shall be taken off arid handed to the general
bookkeeper of the department.
(h) The cash disbursements book shall record all cash paid or checks drawn. Unless such
payment is controlled by previous entry no disbursement may be made without an order,
initialed by the chief deputy, his assistant, or, in their absence, some temporary authority
conferred by the president. After proof each night, a recapitulation shall be taken off and
handed to the general bookkeeper of the department.
(i) The agency ledger shall record the transaction§ between the bank and its foreign agents.
It shall be posted each day from the books of original entry, proved to the control on the general
ledger at least once a week,reconciled and closed quarterly. .As statements are received monthly
they shall be verified to the postings made from returnsindicated by the daily advices of the
foreign agents. All charges incidental to the agent's operations must be recorded in a book
provided for the purpose and verified and initialed by the deputy or his assistant, and subsequently checked and approved by the auditor.
(j) The branch ledger shall show the accounts of the branches with the head office, this
ledger shall be posted from books of original entry, proved once a week to the general control
and reconciled to the branches' monthly statement.
(k) The liability ledger shall indicate the names of all parties upon whose indorsements or
guarantees of acceptance exchange has been bought. The total of the line allowed, whether
percentum of the capital and surplus or the line approved by the board. (See Sec. II,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

44
par. i.) As drafts mature or are accepted, and as the responsibilities of the parties terminate,
the amount of such draft shall be deducted from the outstanding line. It shall also show the
liability of all parties by acceptance on unmatured bill of exchange. (See Sec. II, par. j.) The
balances appearing against any and all parties shall be reported to the board of directors each
week.
(/) The remittance records shall contain the detail of all drafts, cable transfers, bills of
exchange, etc. purchased and charged to agents or branches. This record may be loose leaf if
expediency so demands and the auditor approves. No bill may be entered without an authori'
zation of purchase signed by the deputy or his assistant. A recapitulation shall be given to the
general bookkeeper at the close of each. day.
(m) The draft book shall record all sales of checks, drafts, cable transfers, and other instruments drawn on and to be credited to any agent or branch. There shall be kepttherein all the
detail of such transaction and no draft, check, cable transfer, etc., may be drawn or consumated
without an authorization signed by the deputy or his assistant. After proof, a recapitulation
shall be handed to the general bookkeeper of the department.
(n) Among the control accounts on the general ledger shall appear an account liability by
indorsement—per contra. Customers' liability on discounted paper. This figure shall be
altered from time to time by means of a journal entry. As reports are received from the agents
and branches (see Sec. III, par. F, and Sec. IV, par. G)the entries herein ordered shall be made.
(o) All expenses of the foreign exchange department, except those involved in the operation of accounts such as commissions, charges, foreign revenue stamps etc. (see Sec. V, par. i),
shall be charged to expense account maintained on the general boas of the bank and supported by a detail book.
(p) .All interest receivable or payable, commissions, and other determinable income,shall.
be accrued monthly; all profits on exchange operations shall be determined and set up in profit
and loss account quarterly, and all branch returns shall be carried to profit and loss and an
estimate of the profit for the overlapping month shall be made and passed, based on the return
on the average capital used the quarter just received.
(g) All profits and losses shall be cleared into the general profit and loss' accounts of the
bank on the lastdays of June and December.
(A discussion of the internal organization of the Federal Reserve Board submitted by the
experts who prepared the recommendations herein offered is omitted as belonging primarily to
the board itself.)
FEDERAL ADVISORY COUNCIL.

Section 12 of the Federal reserve act provides for a Federal advisory council to consist
of as many members as there are Federal reserve districts. It is required that each Federal
reserve bank shall by its board of directors annually select one member of the council, and that
the said council shall meet at Washington at least four times a year, as well as oftener if called
by the Reserve Board. The council is given power to select its own officers and adopt its own
methods of procedure, and it is further given authority:
By itself or through its officers (1) to confer directly with the Federal Peserve Board on general business conditions; (2) to make oral or written representations concerning matters within the jurisdiction of said board. * * *

A review of the provisions of section 12 as thus set forth shows that the power of the organization committee and of the Federal Reserve Board in regard to the organization of the advisory
council is only of a very- broad general kind *probably extending no further than the mere making
of suggestions. It is, however, recommended that the organization committee shall, in organizing Federal reserve banks, make some general recommendations to the said banks with reference to their participation in the task of creating this council. The following points are considered to be desirable in the organization of the council:
1. Appointment of members of the council who shall at least at the beginning be active
operating officers, preferably the presidents of the several Federal reserve banks.
2. Establishment of general headquarters in Washington with suitable representative in
charge as agent, through whom requests and suggestions may be transmitted to the Federal
Reserve Board and who shall transmit information to the Federal reserve banks at his discretion
or as may be asked by them.
3. Provision of reasonable allowances for this resident agent or officer of the advisory
council. This point is specifically made subject to the approval'of the Federal Reserve -Boad


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

45
at the
in the early part of section 12, and undoubtedly the recommendations made by the boardbanks.
the practice of the several reserve
beginning will be largely influential in determining
The provision of a suitable mechanism at the outset will do a good deal toward starting the
system upon right lines in the beginning, and it is believed that the general suggestions or
recommendations already indicated ought to be applied.
Consideration should be given to the incorporation in the by-laws of the council of the
following points:
(1) Designation of offices and election of officers.
(2) Powers and duties of officers.
(3) Stated quarterly conference at Washington between Federal Reserve Board and
Federal advisory council.
(4) Audit of expenses and plan for semiannual budget.
Referring more specifically to the intent of the act in providing for conferences with the
members of the Federal Reserve Board regarding all matters relative to the Federal reserve
system, it would seem that the best results would obtain if the active executive officers of the
banks of the system participated. The provision that the Federal advisory council "shall have
power, by itself or through its officers," implies the necessity of continuity of action at Washington in the performance of its duties. Me executive officers of the Federal reserve banks
manifestly would not be available as officers of the council. It is ther efore suggested that it be
deemed appropriate for the council to choose a paid officer or officers, who shall reside in
Washington and maintain an office in the general interests of the Federal reserve banks. They
should, of course, cooperate with the Federal Reserve Board in the general interests of the
Federal reserve system.
If the paid officers of the Federal reserve banks are chosen as members of the Federal
advisory council, as herein suggested, there would be no need for their further compensation,
other than traveling expenses and maintenance charges during the period of their meeting's.
The compensation of the officers of the Federal advisory council, the office rent (unless
otherwise provided by the Secretary of the Treasury), the maintenance of the clerical force, and
other expenses, should be assessed upon the various Federal reserve banks in the same manner
as is provided in the act for the payment of expenses of the Federal Reserve Board.
CODE BOOK.

The Federal reserve banks should be provided with a private code for use in the cable and
telegraphic transmission of advices relative to their business. Such codes are in use in the more
important existing banks, each such bank developing its own code, adapted to its own uses and
employed for the purpose of transmission of cipher messages. It is recommended that such a
code be developed for the joint use of the Federal reserve banks and of the Federal Reserve
Board and that this be done at an early date, the work being placed in the hands of one of the
recognized code experts who are familiar with existing methods of doing this work and who are
trustworthy. In the system of clearing and transferring credits which has been worked out in
the present report, there is a large field for the constant use of telegraphic advices; and the
Federal Reserve Board will find that such advices will be largely relied upon in its own communications with the reserve banks. That such communication will in many instances be of a
necessarily confidential nature is obvious and provision for a suitable means of guarding the
messages during transmission, while reducing their length to a minimum should be promptly
made.
ACCOUNTING SYSTEM.

(The subject of accounting for the Federal reserve banks is dealt with in Circular No. 7.)


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WASHINGTON : GOVERNMENT PRINTING OFFICE: 1914

FEDERAL RESERVE BOARD.
CIRCULAR No. 9a,

PROCEDURE IN THE CONVENTION OF DIRECTORS AND OFFICERS OF THE FEDERAL
RESERVE BANKS.
October 20, 10.30 a. m.
1. Meeting was called to order by the Chairman, the Honorable Secretary of the Treasury.
2. Roll call of those present, by calling on the cities. The delegates from each city stood
up in turn, giving their names.
3. Address of Welcome by the Chairman of the meeting.
Points touched upon in the Chairman's address:
(A) The first object of the meeting was to give the Federal Reserve Board an opportunity to meet and form the acquaintance of the Directors and Officers of the various
Federal Reserve Banks;
(B) To give these Directors and Officers an opportunity to meet each other. The
whole Federal Reserve system was predicated upon complete cooperation between the
different Reserve Banks, and it was important that these Directors and Officers should
get to know each other and understand each other's problems;
(C) The importance of developing some enthusiasm in th work; first, because the
work involved many new and difficult problems, and second, because the country
expected a great deal as the result of the introduction of this system;
(D) It was the hope of the Board that the system would be put in operation at the
earliest possible date, and the opinion had been expressed that by Monday, November
16th, the Reserve Banks could open (by which time the Federal Reserve Notes were
promised for delivery), not to perform all their functions, but to undertake at least some
of them. No elaborate system was expected at the moment of opening, but it would be
necessary to prepare to receive reserve deposits from the banks and to have rediscount
machinery ready for such part of the reserve as would be paid in by the banks. (In this
connection, the Secretary of the Treasury was ready to cooperate as far as possible by
offering the facilities of the various Subtreasuries or Mints.)
(E) It was proposed at this meeting to discuss many matters of common interest.
Some of them might be properly taken up at this general meeting, at which all were
present, while others might better be assigned to meetings of committees, which it was
proposed to hold after the general meeting adjourned. The subjects were of a two-fold
nature; on the one hand, questions of policy and regulations to be promulgated by the
Federal Reserve Board upon which an exchange of views was desired, and on the other
hand, subjects which affected the internal management of Reserve Banks. While the
law contemplated that each bank should decide these questions largely for itself, it was
clear to all concerned that uthformity was most desirable and this meeting had been
called for the purpose of suggesting to all the banks a basis for discussion of these
subjects.
(F) In view of the great public demand for early opening, it had been thought desirable that committees with representation from each bank should consider the various
problems and if possible reach conclusions which they would submit to this conference
at a subsequent session; and that after the approval by the conference of these reports,
uniform action might be suggested by the Board to the several banks.
(G) It might be thought advisable for the Federal Reserve Agents to meet independently or with members of the Board to discuss their duties and the best way of fulfilling
them; and in a similar manner the Governors or members of the Advisory Council might
wish to hold meetings to discuss their own problems either with or without the presence
of members of the Board.
66051-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
4. The Governor of the Board was then called upon to present to the convention various
phases of the subject relating to details. He explained the work done by the Willis Committee,
mentioning that the gentlemen who did that work were present by invitation and had consented
to place themselves at the disposal of the various sub-committees in order to aid in the work
and give such information as the members desired. It was emphasized that the Federal
Reserve Board did not want in any way to prejudge the findings or the conclusions of the
Reserve Banks in matters which were under their own initiative, but at the same time very much
desired to give them the advantage of the work already done, both in order to save time and to
bring about ultimate uniformity. With these objects in view, tentative by-laws and organization charts had been sent to the members in advance of this meeting and some suggestions in
respect to them had already been received.
5. To facilitate the work of the committees to be taken up upon the adjournment of this
meeting it had been thought desirable to classify the work under various headings, assigning
one or more members of the Board or some specified expert to cooperate with committees
selected from among the delegates. The following is a table of subjects and committees:
(a) A Committee on Legal Matters and Procedure:—First, By-laws; acting with
Mr. Hamlin. Second, Other Legal Points and the Preparation of Legal Forms; acting
with Mr. Elliott.
(b) A Committee on Office Quarters, Equipment and Personnel; acting with Messrs.
Delano and Dawson. Topics to be taken up by this committee: Office Quarters; Vault
Space; Orginzation of Staff and matters affecting Officers and Directors, including compensation of Directors and Members of Advisory Council.
(c) A Committee on Re-Discount, including definition of Commercial Paper and
consideration of credit bureaus; acting with Messrs. Warburp, Harding, and Broderick.
(d) A Committee on Duties of Federal Reserve Agents, including under this heading
the auditing of Reserve Banks; note issues; the clearing of national currency; acting
with Messrs. Williams, Miller, and Fisher.
(e) A Committee on Accounting and Statistics: Under this topic the Committee will
consider books and forms,statements to be forwarded to the Federal Reserve Board, etc.;
acting with Messrs. Willis, Benton Robinson, and Ward.
(f) A Committee on Domestic'
Exchange (transit and clearing); acting with Messrs.
Harding, Ward, and Wolfe.
(g) Committee on Bonding of Federal Reserve Agents, Members of their staff or other
Officers of the Reserve Banks; acting with Messrs. Williams and Allen.
(h) A Committee on Mechanical Devices; acting with Messrs. Delano and Ward in
connection with the keeping of accounts and statistics.
6. The Chairman of the meeting then threw the subject open to general discussion, calling attention to the fact that foremost among the general topics upon which the Board wished
information was a response to the question, how soon the banks could be opened.
The meeting then adjourned, to reconvene subject to call of the Chair.
OFFICE OF THE FEDERAL RESERVE BOARD,
Washington, D. C., October 20th, 1914.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0

CIRCULAR No. 10.

FEDERAL RESERVE BOARD
WASHINGTON, D. C., October 28, 1911.
TRANSFER OF RESERVES TO FEDERAL RESERVE BANKS
To ALL MEMBER BANKS:
The Secretary of the Treasury having advised the Federal Reserve Board that formal notice of
establishment of the several Federal reserve banks will be given to all member banks on November
the
16, it is necessary that arrangements be made at once for the transfer of required reserves by the member banks to their respective Federal reserve banks on that date. It is the desire of the Board to
arrange for the actual physical transfer of the first installment in such a manner as to create the least
possible disturbance to business conditions in any city or section.
It is, of course, clear that if the banks in non-reserve cities undertake to make the necessary
deposit of reserves with their Federal reserve bank by remitting checks or drafts on banks in reserve
cities (which checks or drafts can be received by the Federal Reserve bank for collection only), there
may result an unnecessarily heavy withdrawal of funds from the banks in reserve cities. In the same
manner, if banks in reserve cities make remittances of checks or drafts on banks in central reserve
cities, an unnecessary burden may be placed upon the latter.
The deposits of reserves with Federal reserve banks must be made in gold or lawful money, and
in order that the withdrawal of funds from the vaults of member banks may be as nearly uniform as
possible, and so distributed as to relieve any particular section or sections of unnecessary burden, the
Federal Reserve Board urges all banks to ship from their own vaults gold or lawful money. The
Federal reserve banks have been authorized to assume and pay the express charges involved in making
such shipments.
The foregoing suggestions also apply to payments on account of the first installment of capital
stock due November 2nd.
In view of the advantage to be derived from the deposits of gold, which may be used as reserve
for Federal Reserve notes it is strongly urged by the Board that deposits of reserves in the Federal
reserve banks be made, so far as practicable, in gold or gold certificates.
Due notice of the establishment of the Federal reserve banks on November 16 will be sent each
member bank by the Secretary of the Treasury, and no transfer of reserve can be made until this is
done.
Member banks of large resources will greatly facilitate the physical work of counting reserve
money if they will send gold certificates in as large denominations as possible or clearing house orders
calling for gold certificates or gold already counted by the clearing houses. The Federal Reserve
Board appeals to the patriotic spirit of all member banks large and small to do their utmost in facilitating the difficult work now thrown upon the officers of the newly created Reserve banks, and to do
all in their power to secure for the new system the greatest possible success from the beginning.
H. PARKER WILLIS,
Secretary


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CHARLES S. HAMLIN,
Governor.

CONVENTION OF OFFICERS AND
DIRECTORS OF FEDERAL RESERVE BANKS


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HELD AT WASHINGTON, D. C.
OCTOBER 20 21, 1914

REPORTS OF COMMITTEES

WASHINGTON
GOVERNMENT PRINTING OFFICE
1914


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REPORT OF COMMITTEE ON LEGAL MATTERS AND'PROCEDURE.
The Committee on Legal Matters and Procedure begs leave to report that it has given
consideration to the form of by-laws for the Federal reserve banks, and recommends the
adoption of by-laws in the form submitted herewith.
While it is manifestly desirable that the by-laws of the several ,reserve banks should be
substantially uniform, it appears to be necessary to have the article relating to executive
committee (Article II, section 1) modified to conform to conditions in the several districts so
far as relates to the number of members of the committee to be chosen by the directors, their
term of office and their qualification. For example, in some districts it may be desirable to
increase the number, to choose a member from the class C directors, or to provide for rotation
in office, and the matter may properly be decided by the directors of the several reserve banks.
Respectfully submitted.
ALLEN HOLLIS, For the Committee.
Adopted, October 21, 1914.
DRAFT OF BY-LAWS RECOMMENDED BY THE COMMITTEE ON LEGAL MATTERS AND PROCEDURE APPOINTED AT THE CONFERENCE OF DIRECTORS OF FEDERAL RESERVE BANKS
WITH THE FEDERAL RESERVE BOARD ON OCTOBER 20, 1914.

BY-LAWS

OF THE FEDERAL RESERVE BANK OF
ARTICLE I.—Directors.

of busiSECTION 1. Quorum.—A majority of the directors shall constitute a quorum for the transaction
than a quorum may adjourn from time to time until a quorum is in attendance.
ness, but less
SEC. 2. Vacancies.—As soon as practicable after the occurrence of any vacancy in the membership of the
board the chairman of the board shall take such steps as may be necessary to cause such vacancy to be filled
In the manner provided by law.
at
SEC. 3. Meetings.—There shall be a regular meeting of the board every
o'clock ____ m.. or, if that day be a holiday, on the first preceding full business day. The chairman of the
board may call a special meeting at any time and shall do so upon the written request of any three directors
or of the governor. Notice of regular and special meetings may be given by mail or by telegraph. If given
days before the date of the meeting. If given by
by mail, such notice shall be mailed at least
days before the date of the meeting. Notice
telegraph, such notice shall be dispatched at least
of any meeting may be dispensed with if each of the directors shall in writing waive such notice.
SEC. 4. Powers.—The business of this bank shall be conducted under the supervision and control of its
board of directors, subject to the supervision vested by law in the Federal Reserve Board. The board of
directors shall appoint the officers and fix their compensation.
The board may appoint legal counsel for the bank, define his duties, and fix his compensation.
SEC. 5. Special committees.—Special business of the bank may be referred from time to time to special
committees, which shall exercise such powers as the board may delegate to them.
SEc. 6. Order of business.—The board may from time to time make such regulations as to order of bus!':less as may seem to it desirable.
(8)


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
ARTICLE

IL—Executive

committee.

SECTION 1. How constituted.—There shall be an executive committee consisting of the governor, the
Federal reserve agent, and one or more directors chosen from classes A or B; the member or members of
the committee chosen by the board shall serve during the pleasure of the board or for terms fixed by it. Not
less than three members of the committee shall constitute a quorum for the transaction of business, and
action by the committee shall be upon the vote of a majority of those present at any meeting of the committee.
The committee shall have power to fix the time and place of holding regular or special meetings and the
method of giving notice thereof.
Minutes of all meetings of the executive committee shall be kept by the secretary, and such minutes or
digests thereof shall be submitted to the members of the board of directors at its next succeeding meeting.
Such minutes shall be read to the meeting if required by any member of the board.
SEC. 2. Powers.—Subject to the supervision and control of the board of directors, as set forth in Article I.
section 4, the executive committee shall have the following powers:
(a) To pass upon all commercial paper submitted for discount.
(b) To initiate and conduct open-market transactions.
(c) To recommend to the board of directors from time to time changes in the discount rate.
(d) To buy and sell securities.
(e) To apply for and provide for the security of such Federal reserve notes as may, in the judgment of
the committee or of the board, be necessary for the general requirements of the bank.
"(f) To employ or to delegate to officers of the bank authority to employ clerks and other subordinates and
to define their duties and to fix their compensations.
(g) To, approve bonds furnished by the officers and employees of the bank and to provide for their
custody.
(h) In general, to conduct the business of the bank, subject to the supervision and control of the board
of directors.
ARTICLE M.—Officers.
SECTION 1. The board of directors shall appoint a governor, a deputy governor, a secretary, and a
cashier. and shall have power to appoint such other officers as the board may from time to time determine
to be necessary and appropriate for the conduct of the business of the bank. The offices of deputy governor,
secretary, and cashier, or any two of them, may be held by one person, in the discretion of the board. The
officers chosen by the board shall hold office during the pleasure of the board.
SEC. 2. Federal reserve agent—The Federal reserve agent, as chairman of the board, shall preside at
meetings thereof. Copies of all reports and statements made to the Federal Reserve Board shall be filed with
the Federal reserve agent.
SEC. 3. Deputy Federal reserve agent—In the absence or disability of the Federal reserve agent his powers
shall be exercised and his duties performed by the deputy Federal reserve agent, who may perform such
other services as shall be prescribed by the board of directors not inconsistent with his duties as provided
by law.
SEC. 4. The governor.—Subject to the supervision and control of the board of directors, the governor shall
have general charge and control of the business and affairs of the bank and he shall be the chairman of the
executive committee. He shall have power to make any and all transfers of securities or other property of
the bank which may be authorized to be sold or transferred by the executive committee or by the board.
The governor shall have power to prescribe the duties of all subordinate officers and agents of the bank where
such duties are not specifically prescribed by law or by the board of directors or by the by-laws. The governor
may suspend or remove any employee of the bank.
SEC. 5. The deputy governor.—In case of the absence or disability of the governor his powers shall be
exercised and his duties discharged by the deputy governor, and in case of the absence or disability of the
deputy governor the board shall appoint one of the other directors governor pro tern. The duties of the
deputy governor shall otherwise be such as may be prescribed by the board of directors or by the governor.
In case the board shall deem that the business of the bank requires the appointment of one or more assistant
deputy governors, it shall have authority to appoint such assistant deputy governor or governors and shall
prescribe and define his or their duties.
SEC. 6. The sceretary.—The secretary shall keep the minutes of all meetings of the board and of all
committees thereof. He shall have custody of the seal of the bank, with power to affix same to certificates
of stock of the bank, and by authority of the board or the executive committee to such other instruments as


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5
s may, in the absence or disability of the secretary,
may from time to time be required. The board of director
, appoint a
discretion of the board greater convenience can be attained
or upon other occasion where in the
the seal of the bank to certificates of stock or other
affix
secretary pro tern or empower one or more officers to
duties as may from time to time be prescribed by the
instruments. The secretary shall perform such other
.
board of directors, the executive committee, or the governor
of directors shall
at least one other officer designated by the board
SEC. 7. The eashier.—The cashier and
es of the bank, subject to such rules as the
have the joint custody of all moneys, investments, and securiti
duties as may be assigned to him from time
board may adopt for their safety. He shall perform such other
governor.
to time by the executive committee, the board of directors, or the
ARTICLE

IV.—Certificatcs

of stock.

of payment of or on account of stock subscriptions,
SECTION 1. Signature.—All certificates of stock, or
officers as
governor and the secretary or cashier, or such other
shall be signed by the governor or a deputy
corporate seal.
bear the
may be prescribed by the board, and such certificates shall
ARTICLE V.
o'clock to
business from
SECTION 1. Business hours.—The bank shall open for
days established as legal holidays.
on each day except Sundays or days or parts of
ARTICLE

o'clock

VI.—Amendnzents.

of the board by a majority vote of the entire
These by-laws may be amended at any regular meeting
ent shall have been delivered to each member at
board: Provided, however, That a copy of such amendm
least ten days prior to such meeting.
67050-14--- 2


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REPORT OF COMMITTEE ON OFFICE QUARTERS, EQUIPMENT, AND PERSONNEL, ORGANIZATION OF STAFF, AND MATTERS AFFECTING
OFFICERS AND DIRECTORS.
Your Committee on Office Quarters, Equipment, and Personnel, to whom was referred the
following topics: Office quarters (including vault space), organization of staff, matters affecting
officers and directors (including compensation of directors and members of advisory council),
also the subject of telegraph code and proposed form of seal for Federal reserve banks, begs
leave to report as follows:
First. In respect to office quarters, 10 of the reserve banks were represented by directors
,
who reported that suitable temporary quarters had been secured and quarters suitable
for the
opening of the banks (even if not definitely permanent quarters) could be obtained in
the near
future. After considerable discussion of the subject, the following resolution was offered
and
passed •
Resolved, That it is the sense of this meeting that the obtaining of quarters
the opening of the reserve banks can be arranged for at any reasonable date in thesufficient for
near
and that the securing of suitable quarters should not occasion any delay in the openingfuture,
of the
reserve banks.
Second. The subject of the organization of the staff, the equipment, and
the personnel
was very fully discussed. No criticism was offered of the tentative organization
chart. The
general opinion was expressed that the banks would open with comparatively
small forces,
something in the nature of a skeleton organization, which might be expanded
as the business of the banks grew. A force of 35 to 65 men was mentioned as adequate, in the
opinion of
the governors of a number of the banks, for beginning the operation of the
banks. This,
of course, would not include the handling of some of the functions, such, for
example, as
foreign exchange or the general clearing of checks between banks, which would necessari
ly
require a large increment in the force. After a general discussion of the subject,
the following
resolution was offered and passed:
Resolved, That the matter of equipment and personnel of the Federal reserve
banks be
left to their respective boards of directors.
Third. The subject of a telegraph code was quite fully discussed, and the opinion
was
expressed that the members were not ready at this time to make a final recommen
dation.
Thereupon the following resolution was offered and passed:
Resolved, That the Federal Reserve Board shall call upon each Federal reserve
submit in the near future the views of its board of directors upon the subject of a bank to
telegraph
code.
Fourth. It was pointed out that under the Federal reserve act each bank was required
to
adopt a seal. After some discussion of the subject and an inspection of the
seal of the
Federal Reserve Board, the following resolution was offered and passed:
Resolved, That the Federal Reserve Board be requested to send to each
bank a design for form of seal, following in a general way the design adopted Federal reserve
by
Reserve Board for the center of the seal, but with appropriate lettering to indicate the Federal
the reserve bank, a monogram bearing its distinctive letter and number and thethe name of
date of its
organization.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(6)

7
Fifth. The subject of compensation for deputy reserve agents and of the directors was
freely discussed. It was pointed out that it was the duty of the directors of the various reserve
banks to fix these compensations with the approval of the Federal Reserve Board. The discussion developed the fact that in some cases directors would have to travel long distances and,
especially when serving on executive committees, would be compelled to give up a good deal of
time. In view of the varying conditions which exist in the different reserve districts, the conclusion arrived at was formulated in the following resolution, which was offered and passed:
Resolved, That in view of the varying conditions existing in the different districts, it is
recommended that the matter of compensation of the deputy reserve agent, directors of the
banks, the governor, and the member of advisory council be considered by the directors of each
bank and a report of the conclusions arrived at by each Reserve Bank Board be sent to the
Federal Reserve Board for approval.
Submitted as the unanimous action of the committee.
THOMAS P. BEAL.
Signed by—
ARCHIBALD KAINS.
WILLIAM WOODWARD.
GEORGE J. SEAT.
EDWIN T. MEREDITH.
OSCAR FENLEY.
THEODORE WOLD.
CHARLES M. SAWYER.
OSCAR WELLS.
RICHARD L. AUSTIN.
W. H. PECK.
C. H. BOSWORTH.
J. F. OYSTER.
R. H. MALoNE.
J. A. MCGREGOR.
by the convention October 21, 1914.
Adopted


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REPORT OF COMMITTEE ON REDISCOUNT, INCLUDING DEFINITION OF
COMMERCIAL PAPER AND CONSIDERATION OF CREDIT BUREAUS.
The Committee on Rediscount, Including Definition of Commercial Paper and Consideration of Credit Bureaus, has not confined its attention narrowly to the subject assigned,
but with a desire to contribute to speediest determination has given consideration to a number
of features more or less related.
The Federal Reserve Board deems it desirable that the Federal reserve system should
be put into operation at the earliest possible date. In working to this end it is clear that a
minimum number of functions should be undertaken at the outset. It is believed wise that
an executive council should be formed, consisting of the 12 governors, with the deputy governors
as alternates, to which should be referred the matter of determining the date and manner of
undertaking, from time to time, such additional functions as the following:
1. Opening of branches of Federal reserve banks.
2. Open market transactions.
3. Purchase and sale of United States Government bonds and municipal six months'
warrants.
4. Appointment of foreign agents.
5. Clearing and collection and determination of charges therefor.
6. Stipulation of charges to be collected by member banks from patrons for clearings
and collections.
7. Dealing in gold coin or bullion and making loans thereon.
8. Purchase and sale of foreign exchange.
9. Purchase of bank acceptances.
10. Exchanging 2 per cent Government bonds for 3 per cent bonds and one year notes.
In order that the very minimum of machinery may be employed in the first days of
operation it is thought that even (a) transfers between member banks, and (b) transfers
between Federal reserve banks should be deferred until the executive council suggested is
satisfied that the necessary preliminaries have been arranged for such transactions.
While the reserve banks in the central reserve cities might possibly be put in operation
a few days before other reserve banks, the matter of greatest moment is that country banks
shall realize both their opportunity and patriotic duty to help at this juncture by making their
initial payments out of the gold in their vaults.
In order to give the reserve banks the greatest lending power, and thus most -efficiently
aid member banks and general business interests, and in particular to meet the present emergency in foreign exchange, it is vital that as much as possible of the gold now held by member
banks and that is now in circulation should be concentrated in reserve banks. At the outset the
discount rates should be high enough to encourage initial payments in gold with very moderate
availing of the privilege of payment by rediscount. It is to be hoped that the pending amendment to the act may be adopted permitting member banks to carry with their respective reserve
banks any portion of their required reserves. It seems also of prime importance that no tax
shall be imposed upon Federal reserve notes. This would vastly facilitate the absorption by
reserve banks of gold from circulation while a tax on such notes would pvevent. The payment


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(8)

9
ents of Federal reserve notes to member
of transportation charges by the issuing bank on shipm
ntrating gold in reserve banks. There should
banks would also be an important aid in conce
the public and persistent planning in every
be continuous education of both member banks and
gold into the reserve banks. Our commercial
proper way to induce cooperation in gathering
ty of this gold basis of our credit structure.
stability will be in direct proportion to the solidi
the necessity of this cooperation and the mutual
Too much importance can not be attached to
confidence growing out of it.
must at first be wide latitude for the
In the acceptance of paper for rediscount there
cable at this time to attempt to define eligible
exercise of discretion, and it does not seem practi
be discrimination between one name and two
paper in specific terms, nor should there now
develop bank acceptances, and when authorized
name paper. Steady effort should be made to
purpose of the reserve system is to help member
for rediscount of domestic acceptances. The
making credit easy. Consequently, it must be
banks by making credit sure, though not by
of each community, whether ideal or not. There
found practicable to accept the best paper
nce the habits of borrowing and lending that
should be the most persistent effort to so influe
ly improving character until it reaches and
the paper offered for rediscount will be of a steadi
y. Constant liquidation of loans is the most
maintains the highest possible level of qualit
to render aid. Paper rediscounted should therefore
fundamental proof of a condition powerful
tments, and preference by differential rates
represent only temporary and not permanent inves
may develop later as will render precise
should be given to short maturities. Such paper
ble to do more than outline the principles
definition possible, but it now seems impractica
d be accepted.
determining the character of paper which shoul
by
no paper should be offered for rediscount except that given
After the first few weeks
ial statement. All such statereceived a financ
a borrower from whom the member bank has
u
call of the rediscounting reserve bank, and a central credit burea
ments should be subject to the
mation thus secured.
the whole system the infor
should be established making available for
ied
be required in case of those desiring to borrow beyond a specif
Independent audits should
ng to cooperate through the
doubtless be willi
limit. The Comptroller of the Currency would
examiners.
d not rest content merely because of the
In rediscounting, a Federal reserve bank shoul
against loss. It should recognize its larger
indorsement of a solvent member bank assuring
conduct of both banking and general business.
duty to influence in every possible way the better
rediscounted and the development of a
It is believed that careful investigation of all paper
system will conduce greatly to this end.
credit bureau for the benefit of the entire reserve
Respectfully submitted.
For the commitee:
JOHN PERRIN Chairman.
Adopted by the convention October 21, 1914.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REPORT OF COMMITTEE ON ACCOUNTING AND STATISTICS.
1. ACCOUNTING.
When the committee assembled it found that the preliminary organization committee
had been working for several months on the preparation of a system of accounting which
might be adopted by all the Federal reserve banks. Two systems had been prepared, each
with a set of forms necessary to put it into effect, one of the systems having been completely
developed as to form and detail, while the other was developed and presented in a more
general way. The originators of both these systems were present and explained them in
considerable detail to the committee.
After listening to the presentation of the systems it appeared to the committee that they
were not fundamentally at variance. Both had the block system as their basis,
and both in
part developed the machine principle. The committee adopted as the basis for its considerations the block control and unit system outlined in the report of the preliminary organization
committee, described in pages 129 to 169, inclusive, of their report, and found that to this
system could be added, if desired, the following books of continuous permanent record included
in the alternate plan: Register or tickler or both, in the collection department; liability ledger
and tickler in the loan and discount department; and members' journal and Government
deposit journal in the general bookkeeping department. It appeared to the committee that
this plan would provide for intermediate proofs, would give a simple and accurate basis for
operation, provide for the expansion or contraction of business, and adopt itself to either a
large or a small bank. It also appeared to be adapted to the exercise of a maximum or
minimum number of functions of a Federal reserve bank.
During the short time allotted to the committee for its work it has been impossible to
make a thorough study of the accounting systems presented, but the unit and block system
referred to, which has been reproduced photographically for the consideration in detail by the
respective banks, is recommended. It • has been prepared by experts after several months of
study, it has received the approval of the efficiency bureau of the Civil Service Commission,
and has been in partial and successful use in several important banks for some years.
It, of course, must be understood that the adoption of this system does not preclude
a bank from using the books with which its officers are familiar in the initial stages of its
accounting, if necessary, until the system suggested is thoroughly installed.
Should the report and recommendations of this committee be adopted by the conference,
it is suggested that the individual banks be given a reasonable opportunity to examine the
plan in detail and suggest any needed amendations or corrections, after which it is recommended that they be requested to inform the secretary of the Federal Reserve Board of their
approximate requirements, in order that the forms may be printed under his supervision, that
each individual bank be billed direct for its proportionate amount of the cost of printing, and
that at least four months' supply of the forms be ordered.
Changes will be found necessary in any accounting plan, and it seems desirable that in the
future corrections or amendations be sent by the various Federal reserve banks to Dr. H. Parker
Willis, chairman of the preliminary organization committee, for consideration and advice to
the respective banks.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(10)

11
As the Federal reserve act provides that the foreign exchange policy of the various Federal
reserve banks shall practically be under the control of the Federal Reserve Board, it is recommended that such forms as may be necessary to carry out the purpose of the board be promulgated by it at such times as it may be desirable.
2. STATISTICS.
The adoption of the unit principle as suggested makes it quite practicable for each Federal
reserve bank to supply the statistics that may be needed both for itself and as a basis of economic control for the Federal Reserve Board.
Your committee has examined the plan for the statistical department outlined in the
report of the preliminary organization committee, and recommends the establishment of such
a statistical bureau under the direction of the Federal Reserve Board. In general, however.
the committee believes that the statistical work of each individual bank should be mainly
developed on request for data originating in Washington. Compliance with these requests
will make it necessary for each Federal reserve bank to collect the economic, financial, and
business data in its own district. This will give a basis for its economic control. It is therefore
recommended that each Federal reserve bank establish a statistical department under the
direction of one of its officers.
It is suggested that the Federal Reserve Board send from time to time to each Federal
reserve bank a composite summary of the statistics collated, accompanied by an analysis
developing what may be characterized as their economic significance.
The committee desires to express its appreciation of the valuable and painstaking work of
the preliminary organization committee. It will expedite the organization of the banks, and
we consider it a remarkable achievement to have prepared in advance a comprehensive and
workable plan which seems to commend itself to all who have heard it explained and have
examined the forms.
GEO. M. LA MONTE, Ch,airman.
This report was adopted October 21, 1914, by the convention, subject to such changes as
should be recommended at the meeting of governors of Federal reserve banks to be held October ,
22, 1914.
The accounting system was examined by the governors of the Federal reserve banks,
approved by them on October 22, 1911, and the forms are now being printed under the direction of the secretary of the Federal Reserve Board.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REPORT OF COMMITTEE ON DOMESTIC EXCHANGE.
CLEARINGS AND TRANSITS.

In view of the confusion which will arise from an attempt to handle the entire clearings
by a new and untrained force, this committee recommends that the development be gradual,
and that only very limited clearances be arranged for at the start and this committee further
recommends that at the outset as little divergence be made from the normal business procedure
as possible to comply with the terms of the act, and that the Federal reserve banks join the
clearing houses in the cities in which they are located as special members, subject to none of
the clearing-house rules other than those directly affecting exchanges of checks.
On November 2, 1914, the first call for capital has been made payable. At the date of
opening of the banks a call will be made for the first installment of reserves from each member
bank, one-half of which may be paid in rediscounted paper.
Up to this point no checks need be handled. At that point you have created a credit
which each member can draw against, therefore the bank should be prepared to receive on
deposit checks drawn by members on their balances in Federal reserve banks.
We recommend that member banks be allowed to deposit for their credit at the outset any
checks drawn by member banks on any Federal reserve bank or on member banks in reserve and
central reserve cities.
In regard to the distribution of checks payable outside of each Federal reserve district,
it is presumed that the full operations of clearances of that nature will be worked out in
conjunction with the Federal Reserve Board should that body see fit to adopt a national
clearing-house system.
It is presumed that each clearing house in a city where a Federal reserve bank is located
will undoubtedly make arrangements to use the facilities of the Federal reserve banks in the
settlement of balances to the extent that they see fit. Having in mind the fact that the banks
will not be able to perform their full functions with respect to clearings at the very outset, it is
therefore recommended that they start only with the partial plan above outlined, subsequently
extending the function of collecting checks as they become able to do so.
EXCHANGE CHARGES.

Under the act it is evident that all items which may be legally deposited with the Federal
reserve banks shall be accepted at par, and that charges for handling such items through the
Federal reserve banks, based on the cost of overhead charges. clerk hire, including that of
department management, stationery, postage, and equipment depreciation shall be charged
to the meriber banks upon which the items are drawn, and that this charge may be in turn made
by the member banks to their depositors or customers.
This committee recommends that the charges be prorated on the number of items drawn
on the member banks rather than on the amount of dollars.
And this committee further recommends that in adopting this report that these charges be
applied solely to the administrative cost of handling of checks or items through the Federal
reserve bank, and that the evident inequity of the law relating to the charges on checks, as we


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(12)

13
suggest a great disadvantage to members against
interpret the law, seems to this committee to
in the smaller communities against members
nonmenibers and great disadvantages to members
the attention of the Federal Reserve Board
in reserve cities, and we respectfully suggest that
and their consideration thereof be asked.
be called to these inequities, which seem to exist,
AL RESERVE BANKS.
METHOD OF HANDLING MEMBERS/ CHECKS IN FEDER
al reserve bank charge members' checks
It is recommended by this committee that the Feder
day the checks are forwarded, and that memagainst the balances of such members upon the
of the same district as reserve the day such checks
bers be allowed to use all checks on members
the same procedure as is now permitted in making
are forwarded to the Federal reserve bank;
remittances to reserve agents.
Respectfully submitted.
FREDERIC H. CURTISS, Chairman.
Wm. MCC. MARTIN.
C. H. MCINTOSH.
M. B. HUTCHISON.
WALDO NEWCOMER.
LESLIE R. PALMER.
been amended as
The above report was adopted by the conference after paragraph 4 had
•
follows:
,
mend that member banks be allowed to deposit for their credit at the outset
"We recom
s drawn by member
after the initial reserve and capital payments have been made, any check
l reserve cities.
banks on any Federal reserve bank or on member banks in reserve and centra
within their respective districts."
OCTOBER 21, 1914.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REPORT OF THE COMMITTEE ON BONDING OF FEDERAL RESERVE AGENTS,
MEMBERS OF THEIR STAFF, OR OTHER OFFICERS OF THE RESERVE
BANKS.
Your Committee on Bonding Federal Reserve Agents and their Staff Officers and Employees of the Banks beg to recommend:
First. That the bonds of each of the Federal reserve agents and their staffs shall be at
least $500,000.
Second. That the American Bankers' Association bond form, with phraseology modified to
make it a blanket form, be adopted for bonding the Federal reserve agents, their staff, and
all officers and employees of the banks.
Third. That all bonds be written in American companies approved by the Treasury
Department.
Fourth. That after obtaining competitive rates for the security of the Federal reserve
bank the several banks should secure their bonds in their respective localities, as far as
possible.
Fifth. That the amount of the bonds to be given by the officers and employees should be
determined by the directors of each bank.
Respectfully submitted.
J. Z. MILLER, Jr., Chairman.
The above report was adopted after the convention had voted to strike out the recommenation that the bonds of the Federal reserve agents and their staffs shall be at least
$500,000.
October 21, 1914.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(14)

REPORT OF COMMITTEE ON MECHANICAL DEVICES.
Your Committee on Mechanical Devices met in the office of Dr. Adolph C. Miller, at 2.30
o'clock, October 20, and proceeded to give careful consideration to the subject before it, and
begs to report as follows:
The committee decided that it could best serve the interests of the Federal reserve banks
by avoiding details as largely as possible in its recommendations, as the requirements of the
banks will vary according to size and other peculiarities, and for the further reason that, in its
judgment, the naming of machines and manufacturers could offer little advantage and might
seriously prejudice the cause.
First. We recommend the general use of standard mechanical devices by the banks to as
great an extent as such devices can be employed to the most economical end.
Second. We suggest that inasmuch as a council of the governors of the banks will be held
immediately following this meeting, this subject be referred to them for final solution, and we
make this further recommendation.
Inasmuch as the 12 Federal reserve banks will collectively buy a great number of all kinds
of machines, a plan should be devised whereby concessions can be obtained in the matter of the
cost of same, and, looking to that end, we recommend that the council of governors take action
promptly to receive bids from all manufacturers of standard mechanical office devices, those
bidding to agree to supply a part or all of any bank's requirements, and to make deliveries of
equipment at as early a date as same may be required. The bids should state the price to be
paid for each machine, and each firm, company, or person offering a bid should be bound
by same to furnish as many of the machines as may be required by each of the 12 Federal
reserve banks for a period of 12 months from the date of the opening of the banks. Each bank
should be furnished with a list of the machines and prices, and be privileged to buy any
machine desired, or to pursue its independent course if it so elects.
Attention is called to the General Supply Committee, which is the agency through which
the Government departments jointly buy supplies. It is possible that an arrangement could
be effected by which the Federal reserve banks could order their labor-saving devices, etc.,
through this agency, thus availing themselves of the low prices obtainable by the Government. We call the attention of the council of governors to same as information without
recommendation.
F. W. FOOTE, Chairman.
Adopted, October 21, 1914.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(15)

0

•

CIRCULAR No. 12.

FEDERAL RESERVE BOARD.
STOCK SUBSCRIPTIONS OF MEMBER BANKS.
WAsHINGTON, November 6, 1914.
•.Section 2 of the Federal Reserve Act requires all national banks to signify within 60 days
after the passage of the act whether or not such banks intend to become members of the Federal
Reserve System, and also requires those banks which accept the provisions of the act to subtAeribe to an amount equal to 6 per cent of the unimpaired capital and surplus of such banks
within 30 days after notice from the organization conunitiee.
. .In allotting the stock to banks the organization committee adopted as a basis of allotment
the capital and surplus of the applying bank at the time its application was filed. Accordingly
th-e transcript of the stock register forwarded to you to enable you to open your stock ledger
shows_ the amount of capital stock of your bank allotted to the various member banks by the
organization committee on the basis described.
Section 5 of the Federal Reserve Act reads as follows:
The capital stock of each Federal reserve bank shall be divided into shares of $100 each.
•
The outstanding capital stock shall be increased from time to time as member banks increase
their. _capital stock and surplus or as additional banks become members, and may be decreased
as member banks reduce their capital stock or surplus or cease to be members. Shares of the
capital stock of Federal reserve -banks owned by member banks shall not be transferred' or
hypothecated. When a member bank increases its capital stock or surplus, it shall thereupon
subscribe for an additional amount of capital stock of the Federal reserve bank of its district
equal to six per centum of the said increase, one-half of said subscription to be paid in the manner
hereinbefore provided for original subscription, and one-half subject to call of the Federal Reserve
Board. A bank applying for stock in a Federal reserve bank at any time after the organiuttion thereof must subscribe for an amount of the capital stock of the Federal reserve
bank equal to six per centum of the paid-up capital stock and surplus of said applicant bank,
paying therefor its par value plus one-half of one per centum a month from the period of the last
-dividend.- When the capital stock of any Federal reserve bank shall have been increased
either on account of the increase of capital stock of member banks or on account of the increase
in the number of member banks, the board of directors shall cause to be executed a certificate to
the Comptroller of the Currency showing the increase in capital stock, the amount paid in, and
by whom paid. When a member bank reduces its capital stock it shall surrender a proportionate
amount of its holdings in the capital of said Federal reserve bank, and when a member bank
voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Federal
reserve bank and be released from its stock subscription not previously called. In either
case the shares surrendered shall be canceled and the member bank shall receive in payment
therefor under regulations to be prescribed by the Federal Reserve Board, a sum equal to its
cash-paid subscriptions on the shares surrendered and one-half of one per centum a month from
the period of the last dividend, not to exceed the book value thereof, less any liability of such
member bank to the Federal reserve bank.
In order that your records may show the original subscription of all applying banks, your
stock ledger should contain the amount allotted to each bank by the organization committee.
The increase or decrease of capital stock of any member bank should likewise appear on your
stock ledger as a separate item.
Your attention is called to the note on the back of the application for stock in the Federal
reserve banks for use by member banks, which reads as follows:
If 6 per cent of the capital and surplus shown amounts to a sum not divisible by 100, any
excess or fractional part of $100 will entitle the applying bank to one additional share of stock.
•

• 68783-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

2
..the sum repreAccordingly, in filling out the subscription on the reverse side of this form,
senting 6 per cent of the capital and surplus should be divided by 100 in order to obtain the
number of shares to be applied for, and if an excess of less than $100 remains, one additional
share should be added to the application and-included in the subscription of stock to be paid
for at par in accordance with the provisions of the Federal Reserve Act.
From this you will observe that if 6 per cent of the'Capital and suriihis-of any applying
bank amounts to a sum not divisible by 100, any excess or fractional part of $100 would entitle
the applying bank to one additional share of stock. Accordingly it may happen that a-bank
has already been allotted a share of stock for a fractional part of $100. In such case; if the
applying bank increases its capital stock its total allotment should be for an amount equal to .6
per cent of its total capital and ,surplus, including the increase. TherefOre, in order to ascertain the amount of new stock to be issued such bank it will be necessary to determine to.*hat
amount the bank is entitled in toto and then to deduct the number of shares of stock pre.
viously allotted.
Forms for use by banks applying for additional stock will be furnished to the several
Federal reserve banks or to any applying hank, and these applications when properly filled out
should be sent first to the Federal reserve bank of the appropriate district and by the.officers
of such reserve bank to the Federal Reserve Board for approval.
Pending the adoption of these forms by the Federal Reserve Board all Federal reserve
banks should collect from the subscribing banks an installment equal to one-third of the stock
.allotted to such bank by the organization committee, and should subsequently adjust on- the
stock ledger of the Federal reserve bank the matter of any additional stOck subscribed:. _
DECREASE IN CAPITAL STOCK.
.
. In case of decrease of capital stock and surplus of any member bank the Federal. reserve
bank should like*ise collect from the subscribing bank as its first installinent. an amount equiil
to one-third of the stock allotted to such bank by the organization committee, and shOuld
subsequently adjust with such bank any amount due op. account Of any decrease- either in
capital or surplus.
.
In all cases where a subscribing bank notifies the .Federal reserve bank of increase .or
decrease, this notice should be transmitted to the Federal Reserve Board for its action. '
' It is important that the records of the Federal Reserve Board, the Federal reserve bank,
and the Comptroller of the Currency should be in accord at all times, and to this end notice of any
change in capital and surplus should be transmitted to the Federal Reserve Board when
received from any member bank.
The subscribing bank should be notified by the Federal reserve bank of t.his Method'of
adjustment whenever any increase or decrease of capital stock or surplus is called to the atteri.,
tion of the Federal reserve bank.

STATE BANK APPLICATIONS.
The same method should be adopted in dealing with State bank subscriptions. The
by-laws governing conditions under which State banks may become members and a form of
application for stock subscription by State banks will be furnished to all Federal reserve
banks in due course, with full instructions. In the meantime Federal Reserve banks should
collect the first installment from those State banks which have been allotted stock, by the
s
reserve bank organization committee. All other applications for stock should be referred to
the Federal Reserve Board.
H. PARKER WILLIS Secretary.
, •


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WASHINGTON: GOVERNMENT PRINTING OffiCE 1914
:

CIRCULAR No. 13.

FEDERAL RESERVE BOARD.
WASHINGTON, November 10, 1914.
7'o all Federal Reserve Banks:
In view of the impending opening of the Federal reserve banks, the Federal Reserve
Board deems it proper to outline in this circular, in broad general terms, the discount policy
which it believes might be pursued to advantage by the Federal reserve banks at the outset.
While the most acute stage of the recent financial emergency appears to have passed, the
conditions in other countries make it necessary that the United States should, to the utmost
degree of efficiency, organize and make available its own resources in order that it may provide
for its own needs and replace the facilities suddenly destroyed by the closing of so many of the
accustomed channels of credit and trade.
The directors and governors of the Federal reserve banks at a conference in Washington
on October 20 and 21 recommended that the banks be opened without attempting at the outset
to perform all the functions and duties contemplated in the act, but that they be prepared
to accept deposits of reserves payable in lawful money, to discount bills of exchange and
commercial paper, and to accept the deposit (after the reserve payments had been made) of
checks drawn by member banks on any Federal reserve bank or member banks in the reserve
and central reserve cities within their respective districts. It was the opinion of the conference
that arrangements for the exercise of the additional powers granted by the act to the Federal
reserve banks be completed as rapidly as the establishment of safe and efficient organizations
would permit. The Federal Reserve Board is in accord with these suggestions.
it should be borne in mind that, although our exports are showing a gratifying increase,
there is still a large cash balance due to European countries for which gold may be demanded,
and that a large quantity of American securities held abroad may be returned to the United
States; while on the other hand more than $300,000,000 of emergency currency must be
gradually retired. No one can estimate the duration of the war or predict what will be the
financial • and commercial conditions when peace shall be restored. Our own industrial
development has been greatly facilitated by foreign capital, and we have been accustomed to borrow large sums annually in Europe and to sell American securities there, which
attracted foreigners because of their higher rate of return as compared with European investments. It is probable that at the end of the war interest rates in Europe will be higher than
they have been in the past and greater investment returns will be yielded. The tremendous
destruction of property and waste of capital will not only check the flow of European savings
to the United States, but may dispose foreign investors to return us the securities they now
hold. Lower money rates in this country would be likely to accentuate this tendency,
while, on the other hand, higher interest rates and larger investment returns on our side would
check it.
69110*—Cir. 13-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2
The function of the Federal reserve banks is, therefore, of a twofold character. They
should extend credit facilities, particularly where the abnormal conditions now prevailing
have created emergencies demanding prompt accommodation; and, on the other hand, they
must protect the gold holdings of this country in order that such holdings may remain adequate to meet demands that may be made upon them. While credit facilities should be
liberally extended in some parts of the country, it would appear advisable to proceed with
caution in districts not in need of immediate relief and to await the effect of the release of
reserves and of the changes which the credit mechanism of the country is about to experience
before establishing a definite discount policy.
Commercial paper.—The Federal Reserve Board, under section 13 of the Federal reserveact, has the right to determine or define the character of paper eligible for discount, to wit,
"notes. drafts, and bills of exchange arising out of actual commercial transactions; that is,
notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial
purposes, or the proceeds of which have been used or are to be used for such purposes."
Bearing in mind the requirements of the present situation, the Federal Reserve Board
believes that it would be inadvisable at this time to issue regulations placing a narrow or
restricted interpretation upon the section defining the character of paper eligible for discount.
It has, therefore, been decided not at this time to enter upon the discussion of the question of
single or double name paper, but to admit both forms of bills to rediscount with the Federal
reserve banks.
The Federal Reserve Board proposes, however, to prescribe the following basic principles
for the guidance of Federal reserve banks and member banks:
(a) No bill shall be admitted to rediscount by Federal reserve banks the proceeds of which
have been or are to be applied to permanent investment, and regulation No. 2 has been formulated with the intention of giving effect to this principle, and is herewith inclosed.
(b) Maturities of discounted bills should be well distributed. It is the well-established
practice of European reserve banks to invest only in obligations maturing within a short time.
It is a general rule not to purchase paper having more than 90 days to run. The maturities
of these notes and bills are so well distributed as to enable those banks within a short time to
strengthen their hold on the general money market by collecting at maturity or by reinvesting
at a higher rate a very substantial proportion of their assets. Acting on this principle, the
Federal reserve banks should be in position to liquidate, whenever such a course is necessary,
substantially one-third of all their investments within a period of 30 days. Departure from
this principle will endanger the safety of the system. It is observance of this principle that
affords justification for permitting member banks to count balances with Federal reserve banks
as the equivalent of cash reserves.
(c) Bills should be essentially self-liquidating.
Safety requires not only that bills 1 held by the Federal reserve banks should be of short
and well distributed maturities, but, in addition, should be of such character that it is reasonably certain that they can be collected when they mature. They ought to be essentially "selfliquidating," or, in other words, should represent in every case some distinct step or stage in
the productive or distributive process—the progression of goods from producer to consumer.
The more nearly these steps approach the final consumer the smaller will be the amount
involved in each transaction as represented by the bill, and the more automatically selfliquidating will be its character.
For brevity's sake, the words " bills" and "notes" whenever used in these paragraphs include bills, notes, and drafts,
as specified in the act.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3
Double-name paper drawn on a purchaser against an actual sale of goods affords, from
the economic point of view, prima facie evidence of the character of the transaction from
which it arose. Single-name notes, now so freely used in the United States, may represent the
same kind of transactions as those bearing two names. Inasinuch, however, as the single-name
paper does not show on its face the character of the transaction out of which it arose—an
admitted weakness of this form of paper—it is incumbent upon each Federal reserve bank to
insist that the character of the business and the general status of the concern supplying such
paper should be carefully examined in order that the discounting bank may be certain that
no such single-name paper has been issued for purposes excluded by the act, such as investments of a permanent or speculative nature. Only careful inquiry on these points will render
it safe and proper for a Federal reserve bank to consider such paper a "self-liquidating"
investment at maturity.
Turning now to the question of procedure, it is not thought necessary to impose upon the
banks the' observance of methods which would involve needless difficulty or delay. It is therefore not deemed essential that a statement of condition be attached to each bill when sold to a
Federal reserve bank. It is, however, thought advisable by the board to require that on and
after January 15, 1915, no paper shall be discounted or purchased by Federal reserve banks
that does not bear on its face the evidence that it is eligible for rediscount under the principles
and definitions above outlined and as expressed in regulation No. 2, and that the seller of the
paper has given a statement to the member bank. A rubber stamp stating, in substance—

ELIGIBLE FOR REDISCOUNT WITH
FEDERAL RESERVE BANKS
UNDER REGULATIONS OF
FEDERAL RESERVE BOARD CIRCULAR No. 13.
CREDIT FILE NO.
DISTRICT NO.
(Name of Member Bank.)

is considered sufficient evidence to that effect at this time. It would be understood that the
Federal reserve bank could at any time call for the appropriate credit file, and it may well
be expected that the data thus gathered—particularly the files of more important firms and
of those rediscounting in larger amounts—will be so catalogued as to furnish the neucleus of an
effective credit bureau which, in turn, may eventually develop into a central credit bureau for
.
the benefit of all the Federal reserve banks of the system.
For the time being, certified accountant's statements will not be required. This matter is
The required statement as outlined above should be
reserved for regulation at a later date. LH
ort
under oath and should contain a s - general description of the character of the busisigned
balance sheet, and the profit and loss account. i Assets should be divided into perness, the
manent or fixed investments, slow assets, and quick assets. On the liability side should be
shown capital, long-term loans, and short-term loans. Short-term loans should be in proper
proportion to quick assets, and the statement should contain satisfactory evidence •that
short-term paper is not being sold against permanent or slow investments. The statement
should, furthermore, show the maximum aggregate amount up to which the concern supplying


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
this paper expects to borrow on short credit or sale of its paper, and the concern giving the
statement should obligate itself to obtain the member bank's consent before exceeding the
agreed limit. The affixing of the stamp stating such paper to be eligible for rediscount will
be considered a solemn and binding declaration by the member bank that the statement has
been examined from this point of view and that the paper bought complies with all the requirements of the law and the regulations hereby imposed.
The board appends two additional regulations: No. 3, covering discount transactions on
or before January 15; No. 4, discount operations on and after January 15.
Six-months paper.—The law provides that the Federal Reserve Board shall fix the percentage of its capital (by which is understood that portion of the capital paid in) up to which
a Federal reserve bank may discount "notes, drafts, and bills drawn or issued for agricultural
purposes, or based on live stock, and having a maturity not exceeding six months." The law
permits the Federal Reserve Board to deal with each Federal reserve bank individually in
fixing this limit.
The Federal Reserve Board has determined to fix this limit generally, and until further
notice, at 25 per cent of the capital that shall have been paid in from time to time. For those
districts in which, during certain seasons, six-months paper is particularly required to carry
through agricultural operations the limit will be increased from time to time upon requests
made by Federal reserve banks to the Federal Reserve Board.
Regulation No. 5, relating to six-months paper, is appended hereto.
Regulation No. 6, relating to bank acceptances, is likewise appended.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CHARLES S. HAMLIN,
Governor.

REGULATION No. 1.

FEDERAL RESERVE BOARD
WASHINGTON

PROCEDURE IN APPEALS FROM DECISION OF THE RESERVE BANK
ORGANIZATION COMMITTEE,
1. Petitions for changes in designation of Federal reserve cities.
Petitions for review of the action of the Reserve Bank Organization Committee in designating
Federal reserve cities must be signed by duly authorized officers of a majority of the member banks
located in the city requesting a review.
Such petitions must set forth briefly the grounds and reasons relied upon for such review.
Within five days after mailing said petition the petitioner shall file twenty copies of a brief setting
forth fully the grounds relied upon for a review of the action of said Reserve Bank Organization Committee.
The secretary of the Board shall notify all member banks in the Federal reserve city of the district
in question that such petition has been filed, and shall request such banks to designate a representative
to act for such city at the hearing thereon. He shall also send to the representative of such banks, when
designated, a copy of the brief filed by the petitioner, and said representative shall be given seven days
within which to file twenty copies of his brief in reply.
The Federal Reserve Board will thereupon fix a date for the hearing of oral arguments by counsel,
which arguments will be limited to one hour on each side.
The Board will not hear testimony, but the parties will be limited to the record before the Organization Committee.
The record need not be printed, but reference may be made in the briefs by page to the report filed
by the Organization Committee with the Senate of the United States and ordered printed, and may
likewise be made by page and volume to the typewritten testimony of the witnesses appearing before
the Organization Committee at the hearings held by the Committee.
2. Petitions for changes in the geographical limits of Federal reserve districts.
Petitions for review of the determination of Federal reserve districts by the Organization Committee
must be signed by duly authorized officers of at least two-thirds of the member banks in the territory
which the petition asks to have taken out of one district and annexed to another.
Proceedings as to notice, filing of briefs and arguments shall be the same as for petitions for changes
in the designation of Federal reserve cities, except that the board of directors of the Federal reserve
bank and not the member banks in the Federal reserve city shall select the representative to appear
and answer the petition. Class A and B directors elected may act, pending appointment of Class C
directors, in the selection of such representative.
At all hearings held hereunder all questions of law or fact, including jurisdiction and powers of the
Federal Reserve Board, may be argued.
FEDERAL RESERVE BOARD,
By
August 28, 1914.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Governor.

REGULATION No. 2.

FEDERAL RESERVE BOARD.
WASHINGTON, November 10, 1914.
That part of section 13 of the Federal reserve act which relates to rediscount operations
of Federal reserve banks reads as follows:
Upon the indorsement of any of its member banks, with a waiver of demand, notice and
protest by such bank, any Federal reserve bank may discount notes drafts, and bills of exchange
arising out of actual commercial transactions; that is, notes, drafts, and bills of exchange
issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which
have been used, or are to be used, for such purposes, the Federal Reserve Board to have the
right to determine or define the character of the paper thus eligible for discount, within the
meaning of this act. Nothing in this act contained shall be construed to prohibit such notes,
drafts, and bills of exchange, secured by staple floricultural products, or other goods, wares, or
merchandise from being eligible for such discount; but such definition shall not include notes,
drafts, or bills covering merely investments or issued or drawn for the purpose of carrying
Or trading in stocks, bonds, or other investment securities, except bonds and notes of the Government of the United States. Notes, drafts, and bills admitted to discount under the terms
of this paragraph must have a maturity at the time of discount of not more than ninety days:
Provided, That notes, drafts, and bills drawn or issued for agricultural purposes or based on
live stock and having a maturity not exceeding six months may be discounted in an amount
to be limited to a percentage of the capital of the Federal reserve bank, to be ascertained and
fixed by the Federal Reserve Board.
Any Federal reserve bank may discount acceptances which are based on the importation
Or exTiortation'of goods and which have a maturity at time of discount of not more than three
nionths, and indorsed by at least one member bank. The amount of acceptances so discounted
shall at no time exceed one-half the paid-up capital stock and surplus of the bank for which
the rediscounts are made.
The aggregate of such notes and bills bearing the signature or indorsement of any one
person, cOmpany, firm, or corporation rediscounted for any one bank shall at no time exceed
ten per centum Of the unimpaired capital and surplus of said bank; but this restriction shall
not apply to the discount of bills of exchange drawn in good faith against actually existing
values.
Any member bank may accept drafts or bills of exchange drawn upon it and growing out
of transactions involving the importation or exportation of goods having not more than six
months sight to run; but no bank shall accept such bills to an amount equal at any time in the
aggregate to more than one-half its paid-up capital stock and surplus.
'Section 19 of the Federal reserve act, relating to reserves, reads in part as follows:
Any Federal reserve bank may receive from the member banks as reserves, not exceeding
one-half of each installment, eligible paper as described in section fourteen properly indorsed
and acceptable to the said reserve bank.'
-The announcement to be made by the Secretary of the Treasury on November 16 will bring
into operation these two sections, and it is accordingly necessary that the several Federal reserve
banks shall be advised of the characteristics that must be possessed by paper offered for rediscount to be acceptable under the terms of the act.
While section.13 provides that the Federal Reserve Board shall have the right to determine
or define the character of the paper thus eligible for discount within the meaning of the act, the
section referred to defines in general terms the elements which such paper must possess in order
to be--eligible.
All,paper offered for discdunt under this section to any Federal reserve bank must conform
to the following requirements:
Attention is called to the fact that the error in the original at which refer to eligible paper, referred to In section
14, has heed Corrected by amendment approved August 15,1914, and this section now reads:
"Any Federal reserve bank'may receive from the member banks as reserves, not exceeding one-half of each installment,
eligible'paper•as described in eection thirteen properly indorsed and acceptable to the Federal reserve bank."
69110°--No.2-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-

2
First. It must be indorsed by a National or State bank or trust company which is a member
of the Federal reserve bank to which it is offered for rediscount.
Second. Such bank must, with its indorsement, waive demand notice and protest.
Third. Paper so offered shall be in the form of notes, drafts, or bills of exchange arising
out of commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for
agricultural, industrial, or commercial purposes, or the proceeds of which have been used or
are to be used for such purposes.
Fourth. if in the form of acceptances, they must be based on transactions involving the
importation or exportation of goods and must have a maturity at the time of discount of not
more than three months to run. They must furthermore be indorsed by at least one member
bank, and the total amount offered shall in no event exceed one-half the paid-up capital stock
and surplus of the bank offering same.
Fifth. The aggregate of notes and bills bearing the signatures or indorsement of any one
person, company, firm, or corporation rediscounted for any one bank shall at no time exceed
10 per cent of the unimpaired capital and surplus of said bank; but this restriction shall not
apply to the discount of bills of exchange drawn in good faith against actually existing values.
Subject to these limitations, it devolves upon the Federal Reserve Board to determine or
define for the several Federal reserve banks (1) notes, drafts, and bills of exchange eligible
for rediscount; (2) bank acceptances eligible for rediscount.1
The limitations relating to rediscount operations, contained in section 13 of the act, may
be divided into two classes: First, those positive limitations under which such notes, drafts,and
bills of exchange may be accepted for rediscount; and, second, those limitations specifically
stating what paper shall be excluded.
If we begin with the latter, we find the very clear provision excluding all notes, drafts,
and bills of exchange which are "issued or drawn for the purpose of carrying or trading in
stocks, bonds, or other investment securities (except bonds and notes of the Government of the
United States)." This clause does not require comment.
The act further excludes notes, drafts, and bills of exchange covering "merely investments."
Any funds employed in agriculture, commerce, or industry are quasi-investments, and the
emphasis is, therefore, to be laid on the word "merely" in this connection.
From this point of view are to be excluded all bills whose proceeds have been or are to be
used in permanent or fixed investments of any kind. "Agricultural, industrial, or commercial
purposes" cannot, therefore, be held to include investments in land, plant, machinery, perma
nent improvements, or transactions of a similar nature.
The purchase of commodities for purposes which are merely speculative and not connected
with an ultimate process of manufacturing or distribution would constitute a "mere" investment, and bills covering such investments are accordingly not eligible for rediscount.
In order to be eligible for rediscount bills must "arise out of actual commercial transactions." and"the proceeds must have been used or they are to be used for agricultural, industrial,
or commercial purposes."
In like manner "notes, drafts, and bills of exchange secured by staple agricultural
products or other goods, wares, or merchandise" are eligible for rediscount provided they arise
out of "actual commercial transactions" covering some particular stage in the process of production and distribution.
They are not eligible when drawn to cover merely speculative investments.
CHARLES S. HAMLIN,
Governor.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

iBank acceptances eligible for rediscount are defined In regulation No. 6:

REGULATION NO. 3.

FEDERAL RESERVE BOARD.
November 10, 1914.
Whenever a member bank shall offer for rediscount any note, draft, or bill of exchange
bearing the indorsement of such member bank, with waiver of demand notice and protest,
the directors or executive committee of the Federal reserve bank may, until January 15, 1915,
accept as evidence that the proceeds of such note, draft, or bill of exchange were or are to be
used for agricultural, industrial, or commercial purposes (and that such notes, drafts, or bills
of exchange in other respects comply with the regulations of the board) a written statement
from the officer of the applying bank that of his own knowledge and belief the original loan
was made for one of the purposes mentioned, and that the provisions of the act and regulations
issued by the board have been complied with.
IVASIIINGTON,

69110°-Nu.3-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CILUILES S. IIAMT,TN,
Governor.

REGULATION NO. 4.

FEDERAL RESERVE BOARD.
WASHINGTON, November 10, 1914.
From and after January 15, 1915, all notes, drafts, or bills of exchange offered for rediscount shall show on their face, or by indorsement, a statement substantially to the following
effect:
Eligible for rediscount with Federal reserve banks under
regulations of the Federal Reserve Board Circular No.13—
Credit File No
District No
Name of member bank
The credit file number shall refer to evidence in possession of the member bank that the
proceeds of such notes, drafts, or bills of exchange, under the terms of the loans made or to be
made, were, or are to be, used for agricultural, industrial, or commercial purposes, as required
by section 13 of the Federal reserve act and as imposed by regulation No. 2 of the Federal
Reserve Board,and such credit files shall be open to inspection by any examiner appointed by the
Comptroller of the Currency or selected by the Federal reserve bank discounting same, and
copies of such files, or any part thereof, shall be furnished to the officers of the Federal reserve
bank upon request.
The credit files referred to should contain not only evidence of the purpose or purposes
for which such loans are made but also full and complete information as to the financial responsibility of the borrower, including a short general description of the character of the business,
balance sheet, and profit and loss account of the borrower. Assets should be divided into
permanent or fixed investments, slow assets, and quick assets. On the liability side should be
shown capital, long-time loans, and short-term loans. Short-term loans should be in
proper proportion to quick assets, and the statement should contain satisfactory evidence
that short-term paper is not being sold against permanent or slow investments. The statement
should, furthermore, show the maximum aggregate amount up to which the concern supplying this paper expects to borrow on short credit or sale of its paper, and the individual, firm,
or corporation giving the statement should obligate himself or itself to obtain the member
bank's consent before exceeding the agreed limit. The affixing of the stamp stating such paper
to be eligible for rediscount will be considered a solemn and binding declaration by the member
bank that the statement has been examined from this point of view and that the paper bought
complies with all the requirements of the law and of the regulations hereby imposed.
CHARLES S. HAMLIN,
Governor.

69110e—No.4-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REGULATION No. 5.

FEDERAL RESERVE BOARD.
WASIrINGTON, November 10, 1914.
Whenever notes, drafts, or bills of exchange offered for rediscount have a maturity of
more than three but less than six months, and the Federal reserve bank has been satisfied in
the manner provided by regulation No. 2 that the proceeds of loans applied for are used or
are to be used for agricultural purposes or are based upon live stock, such notes, drafts, and
bills of exchange may, until further notice, be accepted for rediscount in an aggregate amount
not exceeding 25 per cent of the paid-in capital of the Federal reserve bank accepting same.
CHARLES S. HAMLIN,
Governor.
601.10'—No.5-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

REGULATION NO. 6.

FEDERAL RESERVE BOARD.
WASHINGTON, November 10, 1914.
Whenever bank acceptances are offered for rediscount it must appear on the face of such
acceptances that the proceeds thereof were used or are to be used in connection with a transaction involving the importation or exportation of goods; that is to say, it must appear that
.
there has been an actual bona fide sale which involves the transportation of goods from some
foreign country to the United States or from the United States to some foreign country.
CHARLES S. HAMLIN,
Governor.
69110'--,No.0-14


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-. ,
•

,

•

•

-

-

REC'D IN FILES SECTION

DEC
K

2,4 194
V

DECISION OF THE
RESERVE BANK ORGANIZATION COMMITTEE
DETERMINING THE FEDERAL RESERVE DISTRICTS
AND THE LOCATION OF FEDERAL RESERVE
BANKS UNDER FEDERAL RESERVE ACT
APPROVED DECEMBER 23, 1913
APRIL 2, 1914

WITH STATEMENT OF THE COMMITTEE
IN RELATION THERETO
APRIL 10, 1914

ider4 tI


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WASH I NGTON
GOVERNMENT PRINTING OFFICE
1911

1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DECISION OF THE RESERVE BANK ORGANIZATION COMMITTEE DETERMINING THE FEDERAL RESERVE DISTRICTS
AND THE LOCATION OF THE FEDERAL RESERVE BANKS.
[Under the Federal Reserve Act approved December 23, 19131

The Federal Reserve Act directs the Reserve Bank Organization
Committee to "designate not less than eight nor more than twelve
cities to be known as Federal reserve cities"; to "divide the continental United States, excluding Alaska, into districts, each district
to contain.only one of such Federal reserve cities," and to apportion
the districts "with due regard to the convenience and customary
course of business." The act provides that the districts may not
necessarily be coterminous with any State or States.
In determining the reserve districts and in designating the cities
within such districts where Federal Reserve banks shall be severally
located, the organization committee has given full consideration to
the important factors bearing upon the subject. The committee
held public hearings in eighteen of the leading cities from the Atlantic to the Pacific and from the Great Lakes to the Gulf, and was materially assisted thereby in determining the districts and the reserve
•
cities.
Every reasonable opportunity has been afforded applicant cities to
furnish evidence to support their claims as locations for Federal
Reserve banks.
More than 200 cities, through their clearing-house associations,
chambers of commerce, and other representatives, were heard. Of
these, thirty-seven cities asked to be designated as the headquarters
of a Federal Reserve bank.
The majority of the organization committee, including its chairman
and the Secretary of Agriculture, were present at all hearings, and
stenographic reports of the proceedings were made for more deliberate
consideration. Independent investigations were. in addition, made
through the Treasury Department. and the preference of each bank
as to the location of the Federal Reserve bank with which it desired
to be connected was ascertained by an independent card ballot
addressed to each of the 7,471 national banks throughout the country which had formally assented to the provisions of the Federal
reserve act.
-Among the many factors which governed the committee in determining the respective districts and the selection of the cities which
have been chosen were:
First. The ability of the member banks within the district to provide the minimum capital of $4,000,000 required for the Federal


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3

4

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

Reserve bank, on the basis of six per cent of the capital stock and
surplus of member banks within the district.
Second. The mercantile, industrial, and financial connections
existing in each district and the relations between the various portions of the district and the city selected for the location of the
Federal Reserve bank.
Third. The probable ability of the Federal Reserve bank in each
district, after organization and after the provisions of the Federal
Reserve Act shall have gone into effect,to meet the legitimate demands
of business, whether normal or abnormal, in accordance with the
spirit and provisions of the Federal Reserve Act.
Fourth. The fair and equitable division of the available capital
for the Federal Reserve banks among the districts created.
Fifth. The general geographical situation of the district, transportation lines, and the facilities for speedy communication between
the Federal Reserve bank and all portions of the district.
Sixth. The population, area, and prevalent business activities of
the district, whether agricultural, manufacturing, mining, or commercial, its record of growth and development in the past and its
prospects for the future.
- In determining the several districts the committee has endeavored
to follow State lines as closely as practicable, and wherever it has
been found necessary to deviate the division has been along lines
which are believed to be most convenient and advantageous for the
district affected.
The twelve Districts and the twelve Cities selected for the location
of the Federal Reserve banks are as follows:
DISTRICT No. 1..
The New England States: Maine, New Hampshire,Vermont, Massachusetts,
Rhode Island, and Connecticut, with the city of Boston as the location of
the Federal Reserve bank.

This district contains 445 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of Boston,on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in
the district, will amount to $9,924,543.
DISTRICT No. 2.
The State of New York, with New York City as the location of the Federal
Reserve bank.

This district contains 477 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bangof New York, on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in the


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

5

district, will amount to $20,621,606; and if there be added six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $20,687,606.
DISTRICT No. 3.
The States of New Jersey and Delaware and all that part of Pennsylvania
located east of the western boundary of the following counties: McKean,
Elk, Clearfield, ,Cambria, and Bedford, with the Federal Reserve bank in
the city of Philadelphia.

This district contains 757 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of Philadelphia, on the basis of six per cent
of the total capital stock and surplus of the assenting national
banks in the district, will amount to $12,488,138; and if there be
added six per cent of the capital stock and surplus of the State banks
and trust companies which have applied for membership up to
April 1, 1914, the total capital stock will be $12,500,738.
DISTRICT No. 4.
The State of wile; all that part of Pennsylvania lying west of district No.3;
the counties of Marshall, Ohio, Brooke, and Hancock, in the State of West
Virginia; and all that part of the State of Kentucky located east of the
western boundary of the following counties: Boone, Grant, Scott, Woodford, Jessamine, Garrard, Lincoln, Pulaski, and McCreary; with the city
of Cleveland, Ohio, as the location of the Federal Reserve bank.

This district contains 767 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal
Reserve Bank of Cleveland, on the basis of six per cent of the total
capital stock and surplus of the assenting national banks in the district, will amount to $12,007,384; and if there be added six per cent of
the capital stock and surplus of the State banks and trust companies
which have applied for membership up to April 1, 1914, the total
capital stock will be $12,100,384.
DISTRICT No. 5.
The District of Columbia, and the States of Maryland, Virginia, North

Carolina, South Carolina, and all of West Virginia except the counties of
Marshall, Ohio, Brooke, and Hancock, with the Federal Reserve bank
located in the city of Richmond, Va.

This district contains. 475 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal
Reserve Bank of Richmond, on the basis of six per cent of the total
capital stock and surplus of the assenting national banks in the district, will amount to $6,303,301; and if there be added six per cent of
the capital stock and surplus of the State banks and trust companies
which have applied for membership up to April 1, 1914, the total
capital stock will be $6,542,713.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

6

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

DISTRICT No. 6.
The States of Alabama, Georgia, and Florida; all that part of Tennessee
located east of the western boundary of the following counties: Stewart,
Houston, Wayne, Humphreys, and Perry; all that part of Mississippi
located south of the northern boundary of the following counties: Issaquena, Sharkey, Yazoo, Kemper, Madison, Leake, and Neshoba; and all
of the southeastern part of Louisiana located east of the western boundary of the following parishes: Pointe Coupee, !berylIle, Assumption, and
Terrebonne, with the city of Atlanta, Ga., as iho location of the Federal
Reserve bank.

This district contains 372 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of Atlanta, on the basis of six per cent of
the total capital stock and surplus of the assenting national banks in
the district, will amount to $4,641,193; and if there be added six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $4,702,558.
DISTRICT No. 7.
The State of Iowa; all that part of Wisconsin located south of the northern
boundary of the following counties: Vernon, Sauk, Columbia, Dodge,
Washington, and Ozaukee; all of the southern peninsula of Michigan,
viz, that part east of Lake Michigan; all that part of Illinois located north
of a line forming the southern boundary of the following counties: Hancock, Schuyler, Cass, Sangamon, Christian, Shelby, Cumberland, and
Clark; and all that part of Indiana north of a line forming the southern
boundary of the following counties: Vigo, Clay, Owen, Monroe, Brown,
Bartholomew, Jennings, Ripley, and Ohio, with the Federal Reserve bank
located in the city of Chicago, Ill.

This district contains 952 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Chicago, on the basis of six per cent of the total
capital stock and surplus of the assenting national banks in the district, will amount to $12,479,876; and if there be added six per cent of
the capital stock and surplus of the State banks and trust cornpanies
which have applied for membership up to April 1, 1914, the total
capital stock will be $12,967,701.
DISTRICT No. S.
The State of Arkansas; all that part of Missouri located east of the western
boundary of the following counties: Harrison, Daviess, Caldwell, Ray,
Lafayette, Johnson, Henry, St. Clair, Cedar, Dade, Lawrence, and Barry;
all that part of Illinois not included in district No. 7; all that part of
Indiana not included in district No. 7; all that part of Kentucky not included in district No. 4; all that part of Tennessee not included in district
No.6; and all that part of Mississippi not included in district No. 6, with
the city of St. Louis, Mo., as the location of the Federal Reserve bank.

This district contains 458 national banks which have accepted the
provi.-ions of the Federal Reserve Act. The capital stork of the


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

7

Federal Reserve Bank of St. Louis, on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in
the district, will amount to $4,990,761; and if there be added six per
cent of the capital stock and surplus of • the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $6,367,006.
DISTRICT No. 9.
The States of Montana, North Dakota, South Dakota, Minnesota; all that
part of Wisconsin not included in district No. 7, and all that part of Michigan not Included in district No. 7, with the city of Minneapolis, Minn., as
the location of the Federal Reserve bank.

This district contains 687 national banks, which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Minneapolis, on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in the
district, will amount to $4,702,925.
DISTRICT No. 10.
The States of Kansas, Nebraska, Colorado, and Wyoming; all that part of
Missouri not included in district No.8; all that part of Oklahoma north of
a line forming the southern boundary of the following counties: Ellis,
Dewey, Blaine, Canadian, Cleveland, Pottawatomie, Seminole, Okfuskee,
McIntosh, Muskogee, and Sequoyah; and all that part of New Mexico
north of a line forming the southern boundary of the following counties:
McKinley, Sandoval, Santa Fe, San Miguel, and Union, with the city of
Kansas City, Mo., as the location of the Federal Reserve bank.

This district contains 836 national banks which have accepted the
provisions of the Federal Resdrve Act. The capital stock of the
Federal Reserve Bank of Kansas City, on the basis of six per cent of
the total capital stock and surplus of the assenting national banks in
the district, will amount to $5,590,015; and if there be added six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for riaembership up to April 1, 1914,
the total capital stock will be $5,600,977.
DISTRICT No. 11.
The State of Texas; all that part of New Mexico not included in district No.
10; all that part of Oklahoma not included in district No. 10; all that part
of Louisiana not included in district No. 6; and the following counties in
the State of Arizona: Pima, Graham, Greenlee, Cochise, and Santa Cruz,
with the city of Dallas, Tex., as the location of the Federal Reserve bank.

This district contains 731 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of Dallas, on the basis of six per cent of the total
capital stock and surplus of the assenting national banks in the
district, will amount to $5,540,020; and if there be added six per cent


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

8

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April 1, 1914, the
total capital stock will be $5,653,924.
DISTRICT No. 12.
The States of California, Washington, Oregon, Idaho, Nevada, and Utah,
and all that part of Arizona not included in district No. 11, with the city
of San Francisco, Cal., as the location of the Federal Reserve bank.

This district contains 514 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of San Francisco, on the basis of six per cent of
the total capital stock and surplus of the assenting national banks in
the district, will amount to $7,825,375; and if there be added-six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up tp April 1, 1914,
the total capital stock will be $8,115,494.
The committee was impressed with the growth and development of
the States of Idaho, Washington, and Oregon, but on the basis of six
per cent of the capital stock and surplus of national banks and State
banks and trust companies which have applied for membership, that
section could not provide the $4,000,000 minimum capital stock
required by the law. With the continued growth of that region it is
reasonable to expect that in a few years the capital and surplus of
its member banks will be sufficient to justify the creation of an additional Federal Reserve district, at which time application may be
made to the Congress for a grant of the necessary authority.
It is no part of the duty of the organization committee to locate
branches of the Federal Reserve banks. The law specifically provides that "each Federal Reserve bank shall establish branch banks
within the Federal Reserve district in which it is located." All
the material collected by the committee will be placed at the disposal of the Federal Reserve banks and the Federal Reserve Board
when they are organized and ready to consider the establishment of
branch banks.
Reference is made to the Map of the Districts and to tables A, B,
C, D, E, and F hereto attached.
W. G. McADoo,
D. F. HOUSTON,
JNO. SKELTON WILLIAMS,

Reserve Bank Organization Committee
WASHINGTON, D. C., April 2, 1914.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IA
'
file
•v4.31.i.

ar,d
REG0A,

°Butte M0NT.

N.DAK.

, ORoise
•
-_

sioDx FKa.its
S uA
.

IDAH0

yo.
,0
fler,N

Chey,,,,ne

an FA
6v.li
crbcis
CA L.

Cif

Otr4ha

UTAH

sCit®

IND. C)PittsWh
,ChiCait gO

MO.

01
410 I.
incinnati

6

/;hoe,;

(a Albuquerque

N.MEX.

OKlahoma C;ty
(LA.

I

Federal Reserve Banks
and the Boundaries of the

Twelve Federal ReserveDistricts
as determined by the

Reserve BanK Organization Committee

, V1/40

Dallas

ARK, Mernipis
0.
Little RocK

— NI.E•
0sC.ca.r otte
n

MI'Ma

Birrninghaln
MISS'of ALA.M
Meripian

harleston
GA.
cksonville

TEXAS

EL.

<•

04ashviile
:EM.

.o •

T 1JC spri

Map showing the
Location of the Twelve

tgavt.aq"

OA
p !
:: York
ae-dWel .2 2:
ie i

C
, ;
W Vn :
eriiaV r j11. hrnorto.
1 •
le
•

ARIZ.

PA •

--•—.

KAN.

\


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

nesm'A nes

Den,4
COLO.

() A ngetd:$
Los

1:r
•t
v
-.,
or
..
....

®
•
NinneapOli WIS:
IOWA

NEB.

/
/SaltLO

\

0-•
•
V1•1®
.i.. m! 805ton
ri
n

Fargo' MIN.i
,

New Orleans
FLA.

TABLE A.-Shcrtaing subscriptions tostock ofFederalreserve banks by national banks, State banks, and trust companies, with area and population ofeach
district.

National banks March 4, 1914.

Districts.
District
No.

1
2
3
4
5
6
7
8
9
10
11
12

Federal reserve cities.
Land area
in square
miles.'
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City, Mo
Dallas
San Francisco
Total


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Population.'

61,976
47,651
40,440
72,693
152,931
233,821
171,306
194,767
433,281
450,831
430,329
683,852
2,973,890

6,552,681
9,113,614
7,932,065
8,326,668
8,519,310
8,677,288
12,348,767
8,747,662
5,195,886
5,671,031
5,797,970
5,0'39,304
91,972,266

Num- Capital and
ber of
surplus.
banks.
445
477
757
767
475
372
952
458
687
836
731
514
7.471

1 United States census of 1910.

Including State banks and trust companies that have applied for membership up to April 1, 1914.

6 per cent Num- Capital and
ber of
surplus.
subscription. banks.

445 $165.409,043
$165,409,043 • $9.924,543
344.793.437
478
343,693.437 20.621.606
208,345,631
7.5.4
203,135,631 12.488,138
201.673,060
769
12,007,384
200,123,060
109,045.223
6.303,301
484
105,055,023
78,375,971
332
4.641.193
77.353,221
216,128,363
967
207,997,941 12.479,876
116,
106, 764
4,990,761
469
83,179,34S
78.382.081
4.702.925
687
78,382.081
93,349.612
3,590,015
839
93.166,912
94,232,073
737
5,540,020
92.333.673
13.5.258,231
529
7.825.375
130,422,921
1.785.252,291 107,115,137 7,544 1,831,109,489

6 per cent
subscription.
$9.924,543
20.687,606
12,500,738
12,100,384
6.542,713
4,702.558
12,967,701
6.367,006
4.702.925
5.600,977
5.653,924
8.115.494
109.866,569

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

'PAST 1.)

TABLE A.
-Showing amount due to and due from banks, amount of individual deposits and all deposits, also cash in vault,for all national banks
in each Federal reserve district as of March 4, 1914.
[PART 2.]

1
2
3
4
5
6
7
8
9
10
11
12

Federal reserve cities.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City, Mo.
Dallas
San Francisco
Total


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Total due to
banks.

Total due from Net balance
due to
banks.
banks.

$125,363,123
863,414,285
214,326,384
186,273,482
71,963,378
39,603,415
441,078,660
131,446,049
80,671,243
146,742,582
51,172,553
120,188,341

$125,087,628
192,806,668
189,222,922
170,831,707
72,983,655
61,442,028
278,661,678
92,813,994
104,873,520
134,726,219
78,083,730
• 122,927,748

2,472,243,495

1,624,461,497

Net balance
due from
banks.

Per
capita
deposit.

Individual
deposits.

All deposits.

26,911,177
2,739,407

$500,636,637
1,191,533,728
718,185,010
654,985 827
317,6.59,06.5
215,744,303
811,307,271
241,740,690
389,088,959
36.5,978,140
252,490,607
444,274,574

8631,356,974
2,061,858,058
937,181,166
851,157,633
399,579,841
262,318,818
1,265,208,464
378,858,307
475,684,697
521,318,350
307,130,732
573,243,051

$96 $53,354,398
226 359,715,324
77,909,120
118
102 75,287,748
47 25,524,694
30 18,752, 412
102 1.50,414,811
43 40,866,167
92 34,917,883
92 44,118,906
53 25,979,225
113 60,077,300

76,711,751

6,103,624,811

8,664,896,091

94 966,917,988

$275,495
670,607,617
25,103,462
15,441,775
$1,020,277
21,838,613
162,416,982
38,632,055
24,202,277
12,016,363

921,493,749

Cash in
vault.

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

District
No.

TABLE B.-Number of national banks on September 9, 1903, and August 9, 1913, with increase or decrease; also amount of capital stock and surplus,
loans and discounts, and individual deposits (in thousands), with amount and percentage ofincrease or decrease.
Number of national
banks.
1903 1913

New York, N.Y
Chicago, Ill
Philadelphia, Pa...
Boston, Mass
Pii l'-1 ImIll, la
San Francisco, Cal
St. Louis, Mo
Cincinnati, Ohio
Baltimore Md
Cleveland, Ohio
Minneapolis, Minn
Kansas City, No
Washington, D. C
St. Paul, Minn
1
Richmond, Va.
Indianapolis, Ind
Atlanta, Ga.'
New Orleans, La
Louisville, Ky
Denver, Colo
Houston, Tex
Portland, Oreg
Omaha, Nebr
Dallas, Tex
2
Seattle, Wash.
Fort Worth, Tex.'
Columbus, Ohio
Nashville, Penn.'
Spokane, Wash.'
Birmingham, Ala.'
Des Moines, Iowa
2
Charlotte, N. C.
Columbia, S. C.'
Savannah, Ga
Memphis. Tenn.'
Lincoln, Nebr
Kansas City, Kans


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Nonreserve

43
12
34
32
35
7
7
13
19
13
5
6
11
6
5
7
4
6
8
5
6
3
7
4
5
6
6
4
4
2
4
4
2
2
4
3
2

36
9
32
17
22
9
7
8
16
7
6
12
11
4
8
5
8
5
8
6
6
5
7
5
6
8
8
5
5
2
4
5
5
2
3
4
2

Increase
or decrease.3

Capital and surplus.
•
1903

1913

- 7 $173,185 $249,305
69,050
38,625
-3
62,065
45,630
-- 2
48,081
46,836
-15
48,514
45,200
-13
44,880
11,238
2
29,140
25,910
20,3.50
14,405
-5
19,760
18,926
-3
14,400
15,372
-6
13,710
6,120
1
11,650
3,855
6
11,165
6,102
9,600
5,036
-2
9,484
2,970
3
9,410
5,860
-2
8,600
2,330
2
8,230
5,790
-1
8,225
6,497
7,538
3,250
1
7,050
2,350
6,675
1,250
2
6,560
3,820
5,900
2,168
1
5,560
1,460
1
4,950
1,865
2
4,673
3,270
2
4,198
2,389
1
4,172
890
1
• 3,114
815
3,055
1,060
1,850
1,167
1
1,825
750
3
1,600
975
1,590
1,600
-1
1,330
5.59
1
800
1,470

•

Increase
or de- Per cent.
crease.3
$76,120
30,425
16,435
1,245
3,314
33,642
3,230
5,94.5
834
-972
7,590
7,795
5,063
4,564
6,514
3,550
6,270
2,440
1,728
4,288
4,700
5,425
2,740
3,732
4,100
3,085
1,403
1,809
3,282
2,299
1,905
683
1,075
625
- 10
771
-670

3 Not a reserve city in

1903.

1903

Individual deposits.

Loans and discounts.

1913

Increase
or de- Per cent.
crease.3

$631,565 $936,908 $305,343
44
147,608
329,024
181,416
79
76,368
218,746
142,378
36
33,003
189,872
156,869
2.7
14,716
129,802
115,086
7.3
86,301
113,959
27,658
300
19,849
109,161
89,312
13
11,900
5.3,443
41,543
41.3
16,481
63,703
47,222
4.4
11,790
60,945
49,155
- 6.5
34,383
55,281
20,898
124
30,938
69 673
38,735
203
12,491
26,834
14,343
83
19,318
34,138
14,870
91
23,360
34,732
11,372
219
10,570
28,420
17,850
60
16,728
26,856
10,128
269
7,078
24,467
17,389
42
9,753
25,553
15,800
26.6
13,920
29,212
15,292
132
18,689
25,612
6,923
200
16,067
21,947
5,880
434
16,790
32,810
16,020
72
13,428
19,816
6,388
172
17,241
25,857
8,616
281
10,704
15,507
4,803
165
5,790
17,429
11,639
43
9,485
17,335
7,850
76
11,209
16,056
4,847
370
5,068
9,697
4,629
232
8,414
13,485
5,071
190
3,010
6,364
3,354
58
5,282
7,311
2,029
143
1,249
3,339
2,090
64
-2,467
5,523
7,990
- 0.6
3,274
6,314
3,040
137
38
4,263
4,225
-45.5

1903

1913

Increase
or de- Per cent.
crease.3

$450,732 $636,544 $185,812
48
76,983
202,335
125,352
81
40,050
162,437
122,387
53
52,657
171,327
21
118,670
13
113,796
27,6.50
86,146
67,034
88,894
21,860
313
14,628
61,380
46,752
22
6,139
38,459
32,320
29
12,356
44,547
32,191
35
18,454
46,110
27,656
24
29,340
42,930
13,590
164
13,515
40,600
80
27,085
7,620
26,319
18,699
89
14,722
29,712
14,990
130
14,723
24.391
9,668
207
22,790
4,757
60
18,033
12,139
20,842
8,703
165
3,936
20,611
16,675
41
10,226
61
10,540 , 20,766
.5,896
35,587
91
29,691
6,794
15,803
22,597
270
15,132
8,619
23,751
273
13,123
27,731
14,608
105
13,003
18,918
5,915
210
16,634
28,931
200
12,297
7,773
3,934.
11,707
223
9,015
21,597
12,582
50
8,627
6,132
14,759
121
10,070
16,436
6,366
230
4,237
9,604
5,367
110
3,866
6,669
166
2,803
1,986
4,421
2,435
90
5,062
3,060
2,002
264
1,358
655
703
59.7
-2,593
4,276
6,869
-31
2,068
4,717
2,649
107
459
2,765
2,306
1

Minus(-)shows decrease; other changes show increase.

41
62
33
45
32
308
32
19
38
67
216
50
40
99
152
27
140
24
97
20
233
176
90
220
135
199
72
140
158
• 79
138
83
153
93
-37.7
78
20

I-1
t•V

TABLE 0.
-Total loans and discounts by geographical divisions, made by national banks in the cities named as of January 13, 1914. Compiled from
special statements submitted to the Comptroller of the Currency.
Eastern States.

Southern States.

Middle Western States.

Western States.

Pacific States.

Amount. Percent. Amount.
4.00
.68
1.73
76.14
.62
.06
1.19
.02
.63
.47
1.20
.60
.40
.35
.40
.04
.45
61.69
.35
3.25
75.55
.05
.39

§§§8§H§E§§§§§§§§§8§§§§§§§§§§§§

$920,804,000 $36,819,000
1 303,498,000 2,055,000
219,044,000 3,789,000 i
190,973,000 145,411,000
785,000
126,3.58,000
1104,696,000
63,000
104,006,000 1,240,000
67,237,000
15,000
60,763,000
385,000
59,435,000
278,000
58,021,000
55,084,000
6E0,000
52,290,000
313,000
47,985,000
38,018,000
155,000
35,721,000
125,000
31,536.000
125,000
27,790,000
11,000
26,916,000
120,000
26,4,52,000
25,032,000 115,442,000
85,000
24,486,000
778,000
23,950,000
23,659,000
21,446,000
21,202,000 16,019,000
19,731,000
10,000
19,677,000
18,031,000
17,437,000
69,000
7,977,000

eigqVaggSRP
25.!-MWE'ng°4Mpg.11,-.A.,

New York
Chicago
Philadelphia
Boston
Pittsburgh
San Francisco
St. Louis
Kansas City, Mo
Cleveland
Baltimore
Minneapolis
Buffalo
Cincinnati
Los Angeles
St. Paul
Richmond
Omaha
Washington
Atlanta
Louisville
Providence
Seattle
Albany
Houston
Portland, Oreg
Hartford
Dallas
New Orleans
Nashville
Brooklyn
Memphis

Percent. Amount. Percent.
71.12 $86,843,000
2.31 17,736,000
86.10 9,398,000
9.50 4,779,000
94.97
598,000
30,000
1.08
3.62 13,593,000
.43 6,419,000
186,000
5.87
85.63 6,891,000
25,000
.57
314,000
89.07
4.10 4,017,000
1.95
20,000
187,000
3:43
4.53 33,473,000
1.79
200,000
95.79
915,000
1.03 26,117,000
.29 25,342,000
18.67
536,000
2.32
161,000
92.42
180,000
87 23,391,000
.21
15,000
6.53 1,059,000
1.08 19,123,000
.87 19,477,000
.14 17,735,000
95.54
17,000
.07 7,913,000

Amount.

9.43 $116,424,000
5.85 257,427,000
4.29 16,013,000
2.50 19,731,000
.47
4,410,000
.03
1,130,000
13.07 80,208,000
9.55 38,101,000
.31 56,303,000
11.59
1,3.59,000
.04 52,657,000
.57
4,858,000
7.68 45,699,000
.04
231,000
.48 32,157,000
93.71
489,000
.63
2,172.000
3.29
81,000
97.03
397,000
95.80
1,026,000
2.14
3,586,000
.66
1,444,000
.75
721,000
98.86
25,000
.08
382,000
5.00
2,301,000
96.92
251,000
98.98
20,000
98.36
271,000
.10
562,000
99.20
58,000

Percent. Amount. Percent. Amount. Percent.
12.64
84.82
7.31
10.33
3.49
1.08
77.12
56.69
92.66
2.29
90.76
8.82
87.40
.48
84.62
1.37
6.89
.29
1.47
3.88
14.33
5.89
3.01
.11
1.78
10.85
1.28
.10
1.50
3.22
.73

$12,668,000
11,358,000
580,000
1,419,000
382,000
25,000
4,701,000
21,804,000
208,000
6,000
4,745,000
150,000
56,000
90,000
2,751,000
5,000
28,212.000
24,000
5,000
7,000
436,000
244,000
85,000
38,000
8,000
287,000
130,000
5,000

1.38 $13,228,000
3.74 7,895,000
670,000
.27
.74 1,496,000
.30
184,000
.02 102,323,000
4.52
495,000
32.43
594,000
115,000
.34
.01
8,000
262,000
8.18
.27
41,000
.11
60,000
.19 46,709,000
7.23 1,462,000
.01 • 10,000
89.46
260,000
.09
139,000
02
.03
1.74
358,000
1.00 21,984,000
.35
52,000
.16
.04 20,994,000
1.35
152,000
3,000
.66
9,000
125,000
.03

1.43
2.60
.30
.7
. 1.]
97.73
.48
.88
.19
.01
.45
.07
.11
97.34
3.84
.03
.83
.50
1.43
89.78
.22
97.89
.72
.01
.06
.71

NOTE.
-The above statement has been compiled from special statements made to the Comptroller of the Currency showing all loans in the United States. Foreign loans are not
included. The differences between this statement and the abstract of Jan. 13, 1914,are made up of foreign loans, bonds loaned and other minor items.
The above classification by geographical groups, which has been observed in the reports of the comptroller's office for the past 18 years, Is as follows: New England States:
Maine, New Hampshire,Vermont, Massachusetts Rhode Island, and Connecticut. Eastern States: New York, New Jersey, Pennsylvania, Delaware, Maryland,and District of
Columbia. Southern States: Virginia,West Virginia, North Carolina, South Carolina, Georgia, Florida,Alabama, Mississippi, Louisiana,Texas, Arkansas, Kentucky, and Tennessee. Middle Western States: Ohio,Indiana,Illinois, Michigan, Wisconsin, Minnesota,Iowa,and Missouri. Western States: North Dakota,South Dakota, Nebraska, Kansas,
Montana,Wyoming,Colorado, New Mexico,and Oklahoma. Pacific States: Washington, Oregon,California,Idaho,Utah, Nevada,Arizona,and Alaska.
1 37,457,00010as than abstract Jan. 13, which included report from branches.
Includes $1,075,000 not localized.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

New England States.
Total loans.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

41''
DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

TABLE D.—Showing bank and trust company credit balances with the national banks in some of the principal cities of the United States; also showing
amounts loaned by the national banks in the same cities to their correspondent banks; also bought paper and collateral loans to noncustomers of the
lending banks, securities owned, and cash reserve in vaults, as of dates named.
Amountloaned
to all banks Per cent Bought paper,
Amount on
Bonds
deposit from and trust corn- loaned stock-exchange curitiesand se- Reserve in
(exclupanies on bills banks Jan. loans, etc.,
A
all banks and payable,and
made by na- sive of bonds
trust com- rediscounts in- 13, 1914, tional banks to for circulation) , vaults (specie
and legal
Cities.
panies through- eluding inch•-to bank noncustomers held
tenders),
.1out the United rect loans with deposits throughout the tionalby na- i Jan. 13, 1914.
banks,
States, Feb. guarantee of Feb. 14, United States, Jan. 13, 1914.
14,1914.
Jan. 13, 1914.
directors, etc., , 1914.
Jan. 13,1914.
$313,586,128
7.96 $263,803,618 $165,827,533
$59,107,399
$742,386,939
New York
31,734,647
88,732,480
29,716,830
9.20
25,663,706 \
278,824,567
Chicago
43,280,798
37,837,529
38,289,408
3.95
6,859,243
173,584,687
Philadelphia
19,958,013
32,661,707
47,402,893
3.80
3,695,480
97,136,156
Boston
6,326,699
26,880,206
16,840,657 i
15.78
14,271,230
90,430,968
St. Louis.
505,141,319
261,684,421
396,053,406
7.92
1,382,363,317 , 109,597,058
24,301,181
37,565,648
.89
16,808,600
710,415
79,314,345
Pittsburgh
8,703,544
4,035,117
4,869,204
34.36
18,844,099
54,835,438
Kansas City,)do
18,683,813
17,859,369
7.19
13,850,432
3,296,431
45,859,188
San Francisco
4,756,442
8,340,938
.70
815,
1, 045
276,052
39,528,280
Albany
10,025,546
6,684,800
3.17
6,177,657
1,163,551
36,746,820
Cleveland
8,859,630
13,281,317
6.00
7,675,667
1,955,816
32,593,282
Cincinnati
3,649,749
7,365,849
8.37
2,449,329
2,620,504
31,316,864
Minneapolis
8,715,311
9,120,902
8.04
4,989,093
2,404,815
27,421,904
Baltimore
4,596,702
2,675,002
3,507,878
31.12
5,768,762
18,533,959
Omaha.
8,178,003
5,212,186
2,267,688
8.44
1,374,958
16,290,131 '
Los Angeles
6,425,836
8,036,166
12,637,337
4.05
792,594
16,002,069
St. Paul
3,596,044
1,366,532
14. 79
1,685,948
1,865,678
12,616,553
Houston
3,322,604
5,525,095
1,879,833
18. 76
2,201,727
11, 750,499
Louisville
13,297,773
4,471,788
3,298,005
.96
109,557
11,388,536
Buffalo
2,444,639
2,276,451
4,257,528
14.85
1,629,449
10,970,068
Richmond
5,387,374
5,437,032
1,574,059
6.79
572,100
8,427,674
Portland, Oreg
4,937,661
4,654,524
8.02
3,064.2u5
602,937
7,518,865
Seattle
2,S30,769
5,587,233
1,231,100
15.70
1,134,102
7,229,470 ,
New Orleans
2,546,927
1,293,061
587,558
22.21
1,385,687
6,237,357
Dallas
91,632
1,164,930
20.91
489,888
1,158,622
5,536,719
Nashville
4,053,193
9,790,823
3,266,983
31.07
1,714,076
5,516,705
Washington
1,855,427
1,408,350
865,180
20.12
892,612
4,436,974
Atlanta
5,681,913
4,322,537
4,124,955
10,000
.25
4,017,811
Brooklyn
1,189,721
128,081
458,088
20.86
406,006
2,377,836
Memphis
1,804,614
6,336,469
6.30
13,518,890
125,000
1,983,787
Providence
1,348,465
1,367,390
9,850,001
835,334 ,
Hartford
The cities included in the above list are all either central reserve or reserve cities, except the cities of Buffalo, N. Y.; Providence, R. I.; Hartford, Conn.; Richmond, Va.;
Atlanta, Ga., Memphis and Nashville, Tenn., which are not reserve cities.
1 Does not include loans and deposits from banks,in other cities, of branches of Bank of California, N. B. A.

TABLE E.
-Statement showing population,capital andsurplus, individual deposits,and loans and discounts of all national banks, as of March 4, 1914,
in the 37 cities which asked to be designated as Federal reserve cities.
Population.1

1. Boston
670,585
2. New York
4,766,883
3. Philadelphia
1,549,008
4. Cleveland
560,663
363,591
5. Cincinnati
6. Columbus
181,511
7. Pittsburgh
533,905
8. Wheeling
41,641
9. Baltimore
558,485
10. Washington
331,069
11. Richmond
127,628
12. Charlotte
34,014
13. Columbia
26,319
14. Atlanta
154,839
15. Savannah.
65,064
16. Louisville
223,928
17. Birmingham
132,685
18. Montgomery
38,136
19. Chattanooga
44,604
20. Memphis
131,105
21. New Orleans
339,075
22. Chicago
2,185,283
23. St. Louis
687,029
24. Minneapolis...301,408
25. St. Paul
214.744
26. Eansas City, Mo.
248,381
27. Omaha
124,096
28. Denver
213,381
29. Lincoln
43,973
30. Dallas
92,104
31. Fort Worth
73,312
32. Houston
78,800
33. San Francisco
416,912
34. Seattle
237,194
35. Portland
207,214
36. Spokane
104,402
37. Salt Lake City
92,777


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Number Capital and
of banks.
surplus.
15
35
32
7
8
8
21
2
15
11
7
5
5
6
2
8
2
4
3
3
4
9
7
6
5
12
7
6
4
5
7
6
9
6
5
5
6

$47,896,000
248,505,000 ,
62,215,000 '
14,400,000
20,350,000 I
4,685,500 i
46,714,000
1,700,000
19,205,720
11,365,000
9,314,392
1,850,000
1,887,500
8,600,000
1,600,000
8,280,000
3,300,000
2,515,000
2,975,000
2,140,000
6,730,000
69,050,000
29,140,000
13,710,000
9,887,081
11,660,000
6,570,000
7,545,000
1,330,000
5,900,000
4,275,000
7,125,000
45,185,000
5,596,500
. 6,780,000
4,i75,000
3,482,500

Per
capita.

Individual
deposits,

$71 $176,088,004
52 771,724,999
40 184,643,392
25
40,479,025
56
39,154,843
25
21,853,183
88
120.260,088
40
4,331,394
34
42,553,451
34
28,491,402
73
25,705,866
54
4,578,573
72
6,398,138
56
24,348,912
24
1,443,161
37
20,430,574
25
9,995,561
66
6,115,197
66
10,109,930
16
7,511,216
20
16,857,832
31
211,558,247
42
61,685,925
45
45,453,532
35.788,142
46
47
40,415,210
53
27,258,869
35
34,124.272
32
4,439,212
64
18,551,847
58
11.629,158
90
25.013,951
108
95,756,484
29,498,646
23
22,595,277
32
40
16,156,830
37
11,103,182

Per
capita.

.

Loans and
discounts.

$268 ' $200,480,934
161
1,082,272,650
119
232,906,822
72
62,588,735
108
55,761,638
120
17,169,907
225
124,568,231
4,915,613
104
76 ' 60,312,953
86
25,405,554
201
35,593,044
135
6,785,057
243
7,322,262
157
26,038,731
3,244,938
22
91
27,999,427
75
10,449,274
5,658,213
160
11,565,519
226
57
7,014,359
50
17,285,254
97
335,820,233
90
102,138,744
150
57,973,491 ;
167
37,437,913 I
162
66,205,054 I
32.848,397
220
160
28,022,377
6,066,192
101
201
18,622,564
159
12,632.408
317
25,923,087
230
120,287,608
23,948,338
124
20,173,774
109
155
13,985,084
11,791,043
120

Per
capita.
$299
227
153
112
153
91
233
118
108
77
279
199
278
168
50
123
79
148
259
53
51
154
149
192
174
267
265
131
138
202
172
329
288
101
97
134
127

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

Location.

1 united States census of 1910.

C71

TABLE F.
-Statement showing population, capital and surplus, individual deposits, and loans and discounts of all reporting banks (National, State,
savings, and loan and trust companies), as of June 4, 1918, in the 87 cities which asked to be designated as Federal reserve cities.

1. Boston
2. New York.
3. Philadelphia
4. Cleveland
5. Cincinnati
6. Columbus
7. Pittsburgh
8. Wheeling
9. Baltimore
10. Washington
11. Richmond
12. Charlotte
13. Columbia
14. Atlanta
15. Savannah
16. Louisville
17. Birmingham
18. Montgomery
19. Chattanooga
20. Memphis
21. New Orleans
22. Chicago
23. St. Louis
24. Minneapolis
25. St. Paul
26. Kansas City, Mo..
27. Omaha
28. Denver
29. Lincoln
30. Dallas.
31. Fort Worth.
32. Houston
33. San Francisco
34. Seattle
35. Portland
36. Spokane
37. Salt Lake City


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Population.'

670,585
4,766,883 ,
1,549,008
560,663
363,591
181,511
533,905 I
41,641
558,485
331,069
127,628
34,014
26,319
154,839
65,064 '
223,928
132,685
38,136
44,604
131,105
339,075
2,185,283
687,029
301,408
214,744
248,381
124,096
213,381
43,973
92,104
73,312
78,800
416,912
237,194
207,214
104,402
92, 777

Number
of banks
Capital and
and trust
corn-surplus.
panies.
60 $100,779,114
563,221,701
142
100
177,448,741
41,635,100
35
39
31,813,107
7,099,000
21
130,037,145
83
4,949,393
11
55
47,952,469
36
29,161,731
16,810,955
26
2,680,000
7
9
2,365,318
15.313,448
28
16
8,129,605
15,100,297
18
6,685,620
11
3,396,762
9
10
4,294,114
7,346,214
22
19
20,532,500
88
151,882,559
44
72,222,500
33
20,731,391
20
11,260,845
30
17,415,500
8,165,000
14
31
11,489,551
2,042,000
15
13
9,997,000
18
6,667,724
13,599,100
13
45
73,623,325
32
11,567,020
22
12,097,718
18
7,660,876
18
7,838,696

1 United States census of 1910

Per
capita.

Individual
deposits.

$150 $661,950,254
118 2,866,351,069
114
592,533,612
71
271,693,217
87
98,178,794
39
30,498,790
243
350,298,872
118
18,845,965
85 1 190,679,440
88 i 72,552,236
131
35,371,126
6,616,642
78
5,804,711
89
28,371,032
98
125
20,622,523'
41,437,599
67
23,182,608
50
6,018,942
89
96
15,166,950
56
23,343,841
60
70,854,415
69
682,498,992
105
205,443,737
78,258,930
68
40,490,496
52
70
66,562,431
65
28,038,694
53
57,371,171
46 1
7.253,010 I
108
24,808,891 '
90 I 14,375,274 I
172
26,551,714
176
313,153,942
48
67,527,325
58
56,805,140
73
25,821,751
33,623,153 1
84

Per
capita.

$987
601
382
484
270
168
656
452
341
219
277
194
223
183
316
185
174
157
340
179
209
312
299
260
189
268
226
269
165
269
196
329
752
285
274
249
362

Loans and
discounts.

$561,625,627
2,306,503,682
413,298,566
188,499,403
88,845,791
24,186,704
291,668,678
16,802,317
118,912,253
63,012,066
50,004,572
9,242,936
8,511,384
33,494,035
28,061,700
38,701,079
21,494,705
7,756,141
16,355,760
24,442,321
64,845,722
690,799,087
233,385,655
82,720,056
42,322,465
91,686,871
34,089,609
41,365,143
8,696,240
27,517,338
16,861,831
32,775„530
281,447,424
48,963,007
44, 132,644
23,235,697
30,676,029

Per
capita.

$803
483
266
336
244
133
547
405
213
190
393
271
326
216
431
172
162
204
366
186
194
315
339
274
197
370
282
194
198
299
231
415
675
206
213
223
330

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

Location.

ON APRIL 10, 1914, THE FEDERAL RESERVE BANK ORGANIZATION
COMMITTEE MADE PUBLIC THE FOLLOWING STATEMENT RELATING TO ITS DECISION OF APRIL 2, 1914, DEFINING THE
BOUNDARIES OF THE FEDERAL RESERVE DISTRICTS AND
DESIGNATING THE LOCATION OF THE FEDERAL RESERVE
BANKS.
WASHINGTON, D. C., April 10, 1914.
Congress imposed on the committee the duty of dividing the
country into not less than 8 nor more than 12 districts, and the
location of a Federal reserve bank in each. Thirty-seven cities asked
to be chosen. The committee could select at most only 12. Necessarily 25 cities had to be disappointed.
Following its policy declared at the very outset, the committee
refused to be influenced by the purely local and selfish claims of cities
or individuals, and discharged the duty imposed upon it by Congress
after exhaustive investigation and study of the entire country, with
unbiased minds and according to its best judgment. With so many
conflicting claims, somebody had to judge. Congress constituted
the committee a court and gave the Federal Reserve Board the
power of review. Disappointed competitors should seek a remedy
through the orderly processes the law prescribes.
Considerable comment has been occasioned by the failure of the
committee to create districts suggested by New Orleans, with New
Orleans as the location for a reserve bank; by Baltimore, with Baltimore as the location for a reserve bank; by Omaha, with Omaha as
the location for a reserve bank; and by Denver, with Denver as the
location for a reserve bank.
The committee realized that the division of the country into districts was far more important and complex than the designation of
the reserve cities, and that the latter duty was subsidiary and relatively simple, waiving considerations of local pride or prestige. In
arranging the districts the consideration of the character and growth
of industry, trade, and banking, no less than the traditions, habits,
and common understandings of the people was much more intimately
involved.
It became clear, in the hearings, that comparatively few people
realized, or seemed to realize, what the act was intended to accomplish; what the nature and functions of the reserve banks were to be;
and how little change would occur in the ordinary financial relations


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

17

18

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

of the communities, the business establishments, and the individual
banks.
Critics of the decision of the committee reveal misunderstanding
in these directions, and either do not know, or appear not to know,
that the Federal reserve banks are bankers' banks and not ordinary
commercial banks; that they are to hold the reserves and to clear
the checks of member banks, make rediscounts for them, and engage
in certain open-market operations. As a matter of fact, the ordinary
every-day banking relations of the community, of business, men,
and of banks will not be greatly modified or altered. The purpose
of the system is to remove artificiality, promote normal relations,
and create better conditions under which everybody will transact
business.
Every city can continue to do business with individuals, firms, or
corporations, within its own limits, or in its own region, or in any
other part of the Union or the world in which it has heretofore done
business.
Reserves are to be held in a new way and in new places, so far as
this act controls them, but banking and business generally will no
more be confined within districts than heretofore, and it is simply
misleading for any city or individual to represent that the future of
a city will be injuriously affected by reason of its failure to secure
a Federal reserve bank. Every city which has the foundations for
prosperity and progress will continue to grow and expand, whether it
has such a reserve bank or not, and well-informed bankers,especially,
are aware of this.
The facts which the committee had to consider will throw light on
its decision in reference to these cities.
NEW ORLEANS' CLAIMS.

New Orleans selected a district extending from New Mexico to the
Atlantic Ocean, including all of Texas, Louisiana, Mississippi,
Alabama, Florida, Georgia, and that part of Tennessee south of tha
Tennessee River.
It was represented by Texas that it would do great violence to her
trade to connect her with New Orleans. It was claimed, and evidence
was submitted in support of the claim, that her trade was with her
own cities or with Kansas City and St. Louis. In a poll of the banks
of Texas made by the Comptroller of the Currency, 212 banks expressed a first choice, 121 a second choice, and 30 a third choice for
Dallas. No bank in Texas expressed a first choice for New Orleans,
only 4 a second choice, and 44 a third choice. The whole State
protested against being related to New Orleans.
The banks of Alabama generally desired to be connected either
with Birmingham or Atlanta, only three expressing a first choice for


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

19

New Orleans. The banks of Georgia desired to be connected with
Atlanta, none expressing a first or second choice for New Orleans,
and only 12 a third choice. They represented that it would do violence to them to be connected with a city to the west and claimed
that their relations were mainly with Atlanta or cities to the northeast. Of 44 banks in Florida 19 gave Atlanta as their first choice,
19 as their second choice, and 5 as their third choice. Only 5 expressed a first preference for New Orleans, and these were in the
western corner, 4 a second choice, and 3 a third choice. No bank in
Tennessee expressed a first or second choice for New Orleans, and
only 2 a third choice, while 7 expressed a first choice for Atlanta, 14
a second choice, and 13 a third choice. Generally speaking, the only
banks which desired to be connected with New Orleans and expressed
a first preference for her were 25 of the 26 banks reporting in Louisiana, and 19 of the 32 in Mississippi. On a poll made from the
comptroller's office of all banks expressing their preference as to the
location for a Federal reserve city, 124 expressed a first preference for
Atlanta, 23 for Dallas, and only 52 for New Orleans. The views of
.2
the bankers were supported by chambers of commerce, other business
organizations, and by many business men.
.
It will thus be seen that if the committee was to give weight to the
views of business men and bankers in the section of the country
affected, to consider the opposition of the States of Texas, Alabama,
Georgia, Florida, and Tennessee, and to be guided by economic considerations, it could not have designated New Orleans as the location
for a reserve bank to serve either the western or the eastern part of
the district that city asked for. The course of business is not from
the Atlantic seaboard toward New Orleans, nor largely from the State
of Texas to that city, and if Dallas and.Atlanta had been related to
New Orleans a better grounded complaint could and would have been
lodged by them against the committee's decision than that made by
New Orleans.
•
Some of the banking statistics which the committee had to consider
throw light on the problem. It should be borne in mind that the
committee could consider primarily only the statistics with reference
to assenting banks. In this section of the country, as in most others,
the assenting banks were the national banks. In March, 1914, the
capital stock and surplus, loans and discounts, and individual deposits
of the national banks in the three cities named, as shown by the sworn
reports to the Comptroller of the Currency, were as follows:
Capital and
surplus.
Atlanta.
Dallas
New Orleans


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$8,600,000
5,900,000
6,730,000

Loans and
discounts.
$26,038,000
18,622,000
17,285,000

Individual
deposits.
$24,348,000
18,551,000
16,857,000

20

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

Even more significant are the statistics of growth from September,
1904, to March, 1914.
CAPITAL AND SURPLUS.

September,
1904.

Atlanta
Dallas
New Orleans

March, 1914.

$2,410,000
2,676,000
6,250,000

Percentage
of
increase.

$8,600,000
5,900,000
6,730,000

256
120
8

LOANS AND DISCOUNTS.
Atlanta
Dallas
New Orleans

$10,329,000
7,653,000
20,088,000

152
$26,038,000
143
18,622,000
Decrease 13
17,285,000

INDIVIDUAL DEPOSITS.
Atlanta
Dallas
New Orleans

$9,931,000
7,157,000
19,425,000

145
$24,348,000
159
18,551,000
16,857,000 Decrease 13

The loans and discounts in the national banks of New Orleans at
the time of the report, March 4, 1914,. were less than those of the
national banks of either Atlanta or Dallas.
While the committee could not figure on the resources of other than
assenting banks which are in this section, the national banks, the
following statistics of all reporting banks, including national banks,
State banks, and trust companies, as of June 4, 1913, were regarded
as significant and were given consideration:.
Atlanta reported capital stock and surplus $15,313,000, or $98 per
pita; Dallas $9,997,000, or $108 per capita; and New Orleans
ca$20,532,000, or $60 per capita. Individual deposits, per capita,
Atlanta, $183; Dallas, $269; New Orleans, $209.
The loans and discounts for all reporting banks for the three cities
were as follows: Atlanta, $33,494,000, or $216 per capita; Dallas,
$27,517,000, or $299 per capita; New Orleans, $64,845,000, or $194
per capita.
The committee found that the total loans and discounts made by
national banks in the cities named in the 13 Southern States on
January 13, 1914, were as follows:
Atlanta.
Dallas
New Orleans

$26,117,000
19,123,000
19,477,000

while the total loans made by the national banks of Dallas throughout
the entire United States on the date mentioned exceeded the loans
made by the national banks of New Orleans.
Special reports, made under oath to the Comptroller of the Currency
also show that on February 14, 1914, the credit balances of the banks


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

STATEMENT OF RESERVE BAN K ORGANIZATION COMMITTEE,

21

and trust companies in the 13 Southern States with the national
banks of Dallas exceeded in amount the credit balances of all banks
and trust companies in these same States with the national banks of
New Orleans.
In view of the comparisons and criticisms from New Orleans in
connection with the designation of Dallas, Atlanta, and Richmond,
and the omission of New Orleans and Baltimore, the following table
is instructive:
National bank statistics for States of Texas, Virginia, Maryland, Georgia, Louisiana,
and Mississippi as of March 4, 1914.
[According to sworn reports made to the Comptroller of the Currency.]
Area
(square
miles).

Population, census 1910.

Capital and
surplus.

..... 265,780
State of Texas (including Dallas)
State of Virginia(including Richmond). 42,450
State of Maryland (including Balti................................ 12,210
more)
State of Georgia (including Atlanta)... 59,475
ncludin N
isin
State of
.
Orleans) .....
48,720
..................
46,810
State of Mississippi....................

3,898,542
2,061,612

$76,785,584 $197,663,338
90,887,858
29,732,696

$215,114,326
107,410,063

Individual
deposits.

Loans and
discounts.

1,295,346
2,609,121

28,267,420
24,479,735

83,217,376
51,382,061

91,326,942
61,852,579

1,656,388
1,797,114

12,128,866
5,168,192

32,000,521
17,045,324

34,804,354
13,669,200

From the above statement it will be seen that in each item, capital
and surplus,individual deposits, and loans and discounts, the national
banks of Virginia, including Richmond, largely surpass the national
banks of Maryland, including Baltimore.
The capital and surplus of the national banks of the State of Virginia are 60 per cent greater than the capital and surplus of the
national banks of the States of Louisiana and Mississippi combined,
including the city of New Orleans, while the loans and discounts by
the national banks of Virginia are more than three times as great as
the loans and discounts in the national banks of Louisiana, including New Orleans..
While the capital and surplus of the national banks of Georgia
largely exceed the combined capital and surplus of the national banks
of the States of both Mississippi and Louisiana, the loans and discounts made by the national banks of Georgia exceed by $13,000,000
the loans and discounts of all the national banks of Louisiana and
Mississippi combined, including the city of New Orleans.
The capital and surplus of the national banks of Texas amount to
four times as much as the capital and surplus of the national banks of
the States of Louisiana and Mississippi conibined,and the individual
deposits in the national banks of Texas also amount to about four
times as much as the individual deposits of all national banks in
Louisiana and Mississippi, the only States from which New Orleans
received as much as half a dozen votes as first choice for the location
for a Federal reserve bank.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

22

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.
KANSAS CITY DISTRICT.

The region in the middle and far West presented problems of
difficulty. Careful consideration was given to the claims of Omaha,
Lincoln, Denver, and Kansas City, which conflicted in this region.
Denver asked for a district which included Idaho, Montana, Utah,
Wyoming, Colorado, New Mexico, and the eastern two-thirds of Arizona and Texas, Kansas and Nebraska west of the one-hundredth
meridian, and the Deadwood portion of South Dakota. The district
gave approximately the minimum capital provided by law. Of the
territory included in this district Montana unanimously requested to
be connected with Minneapolis or Chicago, saying that she had little
or no trade relations with Denver. Idaho desired to go to Portland
or San Francisco; Arizona preferred San Francisco, and the greater
part of New Mexico asked for Kansas City. Western Texas,
Kansas, and Nebraska unanimously protested against going to Denver. Kansas desired Kansas City; Nebraska preferred Omaha or
Lincoln; and Texas wanted either a Texas city or Kansas City or St.
Louis.
In the poll of banks, Denver received 136 first-choice votes, of
which 112 were from Colorado and 12 from Wyoming. With Montana, Idaho, Arizona, Texas, Kansas, and Nebraska in opposition,
it was clearly impossible to make a district with Denver as the location of a bank. Part of the territory asked to be assigned to San
Francisco and the other part to Minneapolis or Kansas City.
Omaha asked for a district embracing western Iowa, all of Nebraska,
part of South Dakota, part of Kansas, Colorado, Utah, Wyoming,
Idaho, and Montana. All but eight of the banks in South Dakota
insisted upon being connected with Minneapolis; Iowa desired to go
to Chicago; Kansas practically unanimously voted for Kansas City;
Montana protested against any other connection than Minneapolis
or Chicago. The preferences of the other States have already been
indicated.
Of the 218 banks which expressed a first preference for Omaha, 181
were from Nebraska. The committee had to consider the State of
Oklahoma and part of Missouri in connection with this region, and
in district No. 10, 497 banks expressed a first preference for Kansas
City; western Missouri, Oklahoma, and Kansas, and part of New
Mexico, especially asked for this connection. Thirty-seven banks in
Colorado gave Kansas City as second choice and 26 gave Omaha.
It seemed impossible to serve the great section from Kansas
City to the mountains in any other way than by creating a district
with Kansas City as the headquarters, or to provide for the northwestern section except by creating a district with Minneapolis as
headquarters. The only other thing that could have been dune
with Nebraska under the conditions which presented themselves


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

STATEMENT OF RESERVE BANK ORGANIZATION

COMMITTEE. 23

was to relate her to Chicago, and this seemed to be inadvisable in
the circumstances. The Kansas City banks serve a very distinctive
territory and will serve it more satisfactorily than St. Louis could
have done. The relations of that territory on the whole are much
more largely with Kansas City than with any other city in the
Middle West with which it could have been connected. It will,
of course, be recognized by those who are informed that of the
four cities Kansas City is the most dominant banking and business
center. The following statistics as of March, 1914, will throw light
on the situation:
Capital and
surplus.
Kansas City..................................................
..................
Omaha
Denver.......................................................
.......................................................
Lincoln

$11,660,000
6,570,000
7,545,000
1,330,OM

Loans and
discounts.

Individual
deposits.

$66,205,000
32,848,000
28,022,000
066,000

$10,415,000
27,258,000
34,124,000
4,439,000

The statistics of growth during the nine years from September,
1904, to March, 1914, are significant:
CAPITAL AND SURPLUS.

September, March, 1914. Percentage
of increase.
1904.
$11,660,000
6,570,000
7,545,000
1,330,000

199
69
127
73

$66,205,000
32,848,000 ;
28,022,00() ,
6,066,000

102
98
58

$30,730,000 $40,415,000
15,728,000
27,258,000 '
34,124,000
27,798.000
3,283,000 I
4,439,000 ;

31
73
22
35

$3,900,000
3,880,000
3,325,000
768,000

Kansas City
Omaha
Denver
Lincoln

LOANS AND DISCOUNTS.

Kansas City..............................................
!
Omaha...................................................
Denver
Lincoln

INDIvnyum,
Kansas City
Omaha
Denver
Lincoln

$35,598,000
16,218,000
14,146,000
3,820,000

so

posi rs.

...........

The loans and discounts of all reporting banks and trust companies in Kansas City on June 4, 1913, amounted to $91,6S6,000,
exceeding by about $7,000,000 the total loans and discounts of all
banks and trust companies in the cities of Omaha, Denver, and
Lincoln combined.
The loans and discounts of the national banks aldne in Kansas
City also exceeded the sum total of the loans and discounts of all
national banks in the cities of Omaha and Denver combined.
The great preponderance in the movement of trade in district
No. 10 is to the east. In order to place the Federal reserve bank for


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

24

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

that region in Denver it would have been necessary to disregard
these facts and the opposition and earnest protests of banks, both
national and State, throughout the district.
THE RICIIMOND DISTRICT.

The committee named as cities for the location of Federal reserve
banks New York, Chicago, Philadelphia, St. Louis, Boston, and
Cleveland. In population these are the six largest cities in the
United States; their geographical situation and all other considerations fully justified their selection.
San Francisco and Minneapolis were the first choice of the great
majority of the national banks in their respective sections, and
their financial, industrial, and commercial relations and other factors
entitled them to be chosen. Their selection appears to have evoked
no criticism, but to have received general approval. Conditions
relating to the Kansas City, Dallas, and Atlanta districts have been
dealt with.
For the territory from eastern Georgia to the Pennsylvania line,
the committee, after fully considering all the facts, decided to create
a district with the Federal reserve bank at Richmond. South
Carolina and North Carolina had protested against being connected
with a bank to the south or west. They said that their course of
trade was northeast. It seemed undesirable to place a bank in the
extreme northeastern corner or at Baltimore, not only because of
its proximity to Philadelphia, but also because the industrial and
banking relation's of the greater part of the district were more intimate with Richmond than with either Washington or Baltimore.
The States of Maryland, Virginia, West Virginia, North and South
Carolina, and the District of Columbia had to be considered. North
Carolina, South Carolina, and Virginia preferred to be connected
with Richmond. West Virginia was divided in its preferences;
Maryland and the District of Columbia, of course, desired Baltimore
or Washington. In the poll of banks made directly by the comptroller's office, Richmond received more first-choice ballot4 than any
other city in the district-167 against 128 for Baltimore, 35 for Pittsburgh, 28 for Columbia, S. C., 37 for Cincinnati, and 25 for Washington, D. C. Of the remaining 21 votes, 19 were for Charlotte, N. C.,
and 2 for New York. Leaving out the States of Maryland and Virginia, Richmond received from the rest of the district three times
as many first-choice votes as were cast for Baltimore.
District No.5 is composed of the States of Maryland, Virginia, West
Virginia (except four counties), North and South Carolina, and the
District of Columbia. These States have always been closely bound
together commercially and financially and their business dealings are
large and intimate. The reports made to the Comptroller of the Cur-


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

25

rency on March 4, 1914, by all the national banks in each of these
States show in every essential respect that the business of the national
banks of Virginia, including Richmond, is greater than the business
of the national banks of Maryland, including Baltimore, or any other
of the five States embraced in district No. 5, as appears in the following
table:
Capital,surplus,and
undivided
profits.
Virginia
• Maryland
West Virginia
North Carolina
South Carolina
District of Columbia

Loans and
discounts.

$33,544,631 $107,410,063
31,390,057
91,326,942
18,209,346
56,789,538
13,527,086
44,051,033
10,332,439
28,860,456
12,685,411
26,253,432

Total individual deposits.

£90,887,858
83,217,376
61,421,332
36,051,154
23,330,916
29,520,853

Advocates of New Orleans have criticized the decision of the
organization committee and have given out comparative figures as
to New Orleans, Richmond, and other cities which are incorrect and
misleading. An analysis and study of the actual figures will be
found instructive and can lend no support to the claims of New
Orleans.
From the sworn special reports recently submitted to the Comptroller of the Currency, it appears that the national banks in Richmond were lending in the 13 Southern .States, on January 13, 1914,
more money than was being loaned in those States by the national
banks of any other city in the country except New York. The total
loans and discounts in the 13 Southern States by the four cities referred to are as follows:
Richmond
Baltimore
New Orleans
Washington

$33,473,000
6,891,000
19,477,000
915,000

The figures also show that in these portions of district No. 5 outside
of the States of Virginia and Maryland the Richmond national banks
are lending twice as much money as all the national banks in Baltimore
and Washington combined. They also show that although Richmond
is not a reserve city, the banks and trust companies in the 13 Southern
States had on deposit in the national banks of Richmond on February
14, 1914, $9,876,000, or slightly more than the banks of this section
had on deposit in the city of Baltimore, and four times as much as
they carried in Washington, although these two cities have long
enjoyed the benefits of being reserve cities. That southern banks
should carry larger balances in Richmond, where they could not be
counted in their reserves, rather than in Baltimore or Washington,
where they could be counted, is suggestive.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

26

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

The figures show that the capital and surplus of all reporting
banks—national, State, and savings, and trust companies—per
capita, in Richmond, as of June 4, 1913, was $131; in Baltimore, $85;
in Washington, $88; and in New Orleans, $60, while the loans and
discounts made by all banks and trust companies in Richmond, on
the same date, amounted to $393 per capita, against $190 in Washington, $213 in Baltimore, and $194 in New Orleans.
The amount of money which banks and trust companies in the
various parts of the country carried on deposit with Richmond, a nonreserve city, on February 14, 1914, amounted to $10,970,000, or
nearly twice as much as the balances carried by outside banks with
the national banks of Washington, which on the same day amounted
to $. ,516,000, and one and one-half times as much as they carried
5
on the same day with the national banks of New Orleans, a reserve
city.
The statistics furnished the organization committee show that on
March 4, 1914, the capital and surplus of the national banks of Richmond, per capita, amounted to more than twice as much as the capital
and surplus, per capita, of the national banks of either Baltimore or
Washington, and three and a half times as much as New Orleans,
while the individual deposits of the national banks of Richmond
amounted to $201 per capita, against $86 for Washington and $76
for Baltimore and $50 for New Orleans. The loans and discounts
in the national banks of Richmond on the same date were reported
at $279 per capita, against $77 for Washington, $108 for Baltimore and $51 for New Orleans.
Especially significant are the following statistics showing the growth
in capital and surplus, loans and discounts, and individual deposits
of national banks in the four cities named:
CAPITAL AND SURPLUS.
September,
1904.
Richmond
Washington
Baltimore
New Orleans •

$3,115,000
6,215,000
18,262,000
6,250,000

March,
1914.
$9,314,00
0
11,365,000
19,205,000
6,730,000

Percentage
of increase.
190
83
5
8

LOANS AND DISCOUNTS.
Richmond
Washington
Baltimore
New Orleans

$12,946,000
15,018,000
48,755,000
20,088,000

$35,593,000
175
25,405,000
69
60,312.000
23
17,285,000 Decrease 13

INDIVIDUAL DEPOSITS.
Richmond
Washington
Baltimore
New Orleans


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$11,257,000
20,017,000
40,910,000
19,425,000

$25,705,000
128
28,491,000
42
42,553,000
4
16,857,000 Decrease 13

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

27

In other words, the figures show that the national banks of Richmond were lending on March 4, 1914, twice as much money as all
the national banks in the city of New Orleans, and 40 per cent more
than all the national banks of Washington.
In the original decision of the committee the various economic
and other factors which entered into and determined the committee's
action were enumerated and need not be repeated here. This
statement is made for the purpose of disclosing some of the details
which influenced the Committee's findings.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

........4.4440... ,
ty.o....
opme4.0.4.44
4
.4,0.,
.............44.0,44, _
,
VS.
,
.e..... .-4 . .
4
I.Ng...a..11...."11KNPI.d.

4,--...........,......,
Who..
-.
,.....
..• ....../60.0 ...4.41
r
,
....... ,
......W.1111.1.0.1......,
.
..,....;
0.404.,,,V-4.
....4 ......a ,.
.
.../.4...r.........0,,,....01...41
,i,,
,0,...
...( ,..,.
.
,,
.
„
..... ...,,,
,
."..4
.
101. ...4.4.,. .41/Pfti. .4.4........
.,,,....
. - ,,....

.4.,

.4,6,...yr........ ... .
....4
.4...,....,0
44

W.
,11......

Ar.. 00f
4
,....

.....4111/.10.11-,
..........•,..e.
.0401.,s414111,41,g1..,MVI.P.11.
,
,. . , ..
I, ,
0,,,,•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Not .located in Records Section
or the Minutes Vault.
May be in Organization Committee
Exhibits in the Records Center in
Alexandria.

Material received from i'arker B. Willis
son of H. ''arker
7/22/64.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

p pEN

A

, t..--..e.ev0,— ,.,&t
a, ) t 17(,--,„"up.-A4,,
,
.,-.24-.04.,1:47,4;5.1...41
(

_A,

._.
,,
,,,,,
,,,„,.,„7..,..„ .....,, .,:„ . „... ,4r.i.41'
.t 1
t
.. .
.
Ji- / _
e
• .

j

,,C c:(24.7--,......1-alik.,•-:,

r:,.) )xI .4„. (
1

4
"

'1

Q",-Q .

c
----t

1/ 0 s- e.,-.____,&
4...-.

- ...t) , • ' - •-•
. . i 74,
.

C'...,4,....—,..7.--e.e.....

..56
• 3 Y'

-,4,, 0.,,,,, ,...
,
i.

u...„2 e
,,
,..,„...

:+ %-t.
1',

iv.4,..K.':,

,,e,
.
‘ ce.4
i

_

The Re-derve Bank Organization Committee,
r--2- ),-,Washington, D. C.

- Le----4_..a....t
7 ,
,..we /
e
„

Gentlemen:.0
Pursuant to your instructions I have read and analyzed
the testimony taken before your Committee at the various cities at
which you have held hearings with reference to the prospective division of the United States into reserve banking districts.

As a

result of this analysis, I beg to submit the following memorandum
or statement, accompanied by maps:
Part rA theoretical treatment of the general principles
t)
e
stricting must be carried out.

on which

r

I

Pbrt /
0:: A proposed plan for the subdivision of the country

'into eight or 4ne (as preferred) districts.
'
'Part 3: A modification af this plan whereby three additional districts wotrild be created.
Part 4: A defence of the grouping suggested.
Part 5: A discussion of the location of the headquarters
banks and of thar branches.

,

I

\ Maps: A map of each proposed district is submitted in con-.
ID
nection with the text relating to that district and a general map

1 showing railway routes and grouping all the districts a in their
relation to one another is added at the close.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Classes of Testimony,4

9 5 c

The testimony taken before the Organization Committee may,
In my judgment, be generally divided into the following classes:
„Co 7“a)6That relating to the importance, capital, business,

/LL

and future prospects of the various places represented.
(b) That relating to the clearings and financial transactions of the various places, and their relation to other cities with
reference to banking accounts and reserves carried in other banks.
(c) That relating to the habits and customs of the surrounding communities in regard to applications for loans and in regard
to
the distribution of *eir business between different cities under the
present banking system.
(d) That relating to railway facilities, times of communication, and delivery) of mail.
(e) That relating to the capitalization of the banks of
the section, state and national, the amount of their deposits and
of
their reserves.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

sY76

-2Character and Volume of Local Business/
Relatively little attention need be paid to the evidence
presented in various places with regard to the character and volume of
local business, or with reference to the rapid development of such trade
and industry in the past or its probable future.

Under the existing

banking systemI co- petition and the general course of trade have mapped
out distinct channels within which funds are transferred, and have determined the distribution of banking capital upon known lines.

There is

nothing in the new act to alter this distribution,certainly for the
present, and there is no reason to believe that the main features of
business, its distribution, and its character will be materially altered in the near future.

They will continue about the same under the pro-

posed system as they are today.

The chief difference that will be grad-

ually developed will be found in the fact that those who have
prime commercial paper to dispose of will be able to market it locally
instead of
relying upon distant financial centers.

But inasmuch as the capital and

reserves of the new banks are to be determined as a percentage of
existing bank capital, the reserve banks are a function,
to speak mathematically, of existing banks.

They cannot do more for the given section in

Which they are situated than their capital, contributed
by existing banks,
will allow.

A certain limitation may of course be placed upon this state-

ment in that some stock may be sold to the public
at the discretion of
the Organization Committee. This, howeve
r, will be a limited, and I assume, exceptional, resource, and the consequence must
be that in order to
enlarge the resources of a reserve bank it would
be necessary to develop
those of existing member banks.
local industries require.

This will be done as the needs of the

There is, therefore, no direct or immediate

relationship between the proposed reserve bank and
the business concerns
of a given district which
is not expressed in the capitalization of the
banks of that district.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

'2,11

-3

Question of Clearings,'

<-

C7

In like manner, it may be said that the question of clearings is not one that is vitally essential to the locating of the new
banks.

Much of the testimony adduced has to do with the relative amount

of clearings at given places.

On the other hand, it has been frequent-

ly pointed out by witnesses that large volumes of trade are not expressed in the clearings.

The reason why the clearings need not be primarily

considered as throwing light upon the suitability of a given point as
the location of a reserve bank is found in the facts that, (a) under the
existing system of banking the clearings are affected by many extraneous
features which will disappear under the new system; (b) the precise
amount of the clearings varies very greatly from place to place and will
always do so, according to the number and character of the banks and
the nature of their relations with one another and with outside banks.
Clearings are never a very good index of business either as to volume,
nature, or strain on the financial resources of the places where they
are effected.

There is little need, therefore, to examine figures of

clearings in seeking to place the new reserve banks.

In all probabil-

ity, even the most conscientious study of clearings would be found to
be useless, owing to the complete alteration which will be effected so
soon as the new system has been successfully put into operation and
has had time to produce its results in changing the direction of remittances and in altering modes of payment.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

37

-4Capitalization.
Again, the bare facts as to the capitalization of the banks
and trust companies of a given city or region are of only secondary importance in determining the location of reserve banks.

The law speci-

fies that no reserve bank shall be created with a smaller capitalization than $4 1 000,000 and it is, therefore, necessary to obtain in every
district an aggregate of banking capital which shall bear the proper
relation to this minimum amount on the 6 per cent basis indicated in the
law.

For reasons which will be later stated, it is not believed that

anything is gained by attempting to take in an unduly large amount of
banking capital in any given district.

Assuming these premises,--one

based on legislative provisions, the other upon general reasoning--the
question how great or how effective is the capitalization of existing
banking facilities in any particular place is not fundamentally important.

The district reserve bank, if operated upon public-spirited lines,

Will be managed in such a way as to serve in an equitable manner the
various needs of the district, and will be managed by directors who
Presumably represent the whole district, just as the reserve bank system
Will presumably be operated in the interests of the country as a whole
and without effort to serve the interests of one particular section or
group of persons.

It may be said, therefore, that since the capitaliz-

ation of the whole district will be available in its due proportion for
the uses of the district in all of its varied parts, the development of
a portion of this capitalization at a given point has no fundamental
bearing upon the placing of the reserve bank at that point.

Still less

is this true in view of the provisions for the creation of branch banks%


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-5A2
2
Railway Facilities./

C

A very different point of view must be taken with respect
to the question of railway facilities.

The Federal reserve bank of a

district must be located somewhere, and the assumption naturally is
that
it will be located in the place which is most accessible and
from which
it can best serve the community.

Other things being equal, a large

city is favored because it is likely to contain a correspond
ingly large
proportion of the heavy borrowers of a community and to bring
them consequently close to the reserve bank where their habits and
methods can
be easily inspected.

It remains true, moreover, that the larger places

are usually those where the railway facilities are the
best.
The Federal reserve bank is .furthermore, called upon to
perform the service of clearing for its members, and in order
to effect
this object successfully it must be within as quick
and easy reach of
the member banks as practicable.

This is fundamentally important in

getting the clearing system into effective operation,
and it is believed
that this clearing system will be found to be one
of the most significant features of the new law.

Moreover, easy communication for the

Purpose of prompt transmission of funds, the shipment of
currency in
time of necessity with as little delay as possible and
the prompt receipt of deposits, as well as the affording of
immediate means of communication with other Federal reserve banks, all dicta
te the selection
of places for the head offices of such banks that are
best equipped
With means of communication and are acle most
speedily to receive from
and send to their member banks such funds
, checks, drafts and the like
as may be required by the course
of business. The testimony affords
considerable valuable information on this point
.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Y

-6-

.1111

Habits of Borrowing.
It will be worth while to devote attention to the data that
have been developed with respect to the borrowing habits of the community inasmuch as these habits undoubtedly will tend to persist and it is
not desirable to break them except where necessary.

For example, if it

is shown that a large section of the surrounding country is in the habit
of dealing with point A and of discounting its paper in the banks of A,
that is a consideration in favor of recognizing A as the center of the
reserve district which is to include A and the territory adjacent, and
it is also an argument to be considered in that it indicates that A is
already a financial center for that territory with well developed lines
of credit outstanding.

At the same time, it should be remembered that

under the new act there is nothing whatever to prevent individuals from
borrowing outside of their own districts or to prevent member banks from
rediscounting paper with other banks in other districts or from selling
or buying in the open market.
Practices in that regard.

They will be able to continue their present

Further the existing banking system has in

some cases tended to centralize funds under an artificial method, and
SO to build up certain points in a way that they would not naturally
have developed.

It is, therefore, not absolutely essantial, or always

Possible, in laying out the districts to pay heed to the existing practices on the part of given banks in borrowing through or from the banks
of a specified city.

In some cases, it may be necessary to place such

borrowing banks or individuals in a district which will center at a
Point not heretofore regarded as the financial metropolis of the region.
It may be generally said that the borrowing habits of the community
Should be regarded as fully as possible, in all cases where such regard
does not run counter to other more forcible or controlling considerations. The testimony throws much valuable light upon these borrowing
habits, and is of material assistance in determining the limits to be
assigned certain districts.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-7.
Question of a Large Bank or Banks.
Inspection of the records and testimony filed at the various
hearings shows that in several places local bankers advocated the establishment of a very large bank.

This was not in all cases because of the

desire for an extremely high capitalization, but was in not a few the
outgrowth of a feeling that the city where the bank was to be located
was entitled to a certain territory which was regarded as naturally dependent upon or ancillary to it.

Thus pleas were made for a bank with a

very large capital or a large territory, or both, at New York City,
Chicago and St. Louis.

At other places requests for large territories

were filed, but in many such cases the requests were due to the converse consideration,--the necessity of including a sufficiently large
territory to supply the banking capital requisite upon the percentage
basis prescribed by the act, to furnish the necessary reserve bank capitalization.

Some analysis may now properly be made of the two points

of view thus offered.
Those who demanded the organization of a large bank on the
ground that such a bank was necessary in order to supply the necessities of the borrowing co7munity dependent upon such bank were manifestly
in error, inasmuch as they assumed that the bank in question was to be
Primarily dependent upon its capitalization for the means of supporting
its discounts.

Such is far from being the case.

The act itself pres-

cribes that the banks shall be provided shortly after their organization,
not only with paid in capital, but also with very large sums in deposited reserves representing the reserve funds of member banks.

These both

can and should be (as they were intended to be) available for use as reserve bank loaning resources.

In addition the government deposits to

be made with the banks will furnish further means of supporting credits.
The capital will be simply an extra or added strength to the banks and
a buffer against possible losses.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

If it be contended that the bank of

-8any given district is not large enour-h to meet the needs of the community the criticism really amounts to a statement that the amount of the
reserves required to be deposited is not sufficient.

This difficulty,

If it existed, could be overcome by the banks which are jointly stockholder ,i1 in the reserve bank, by simply depositing more of their funds
with the reserve institution.

If necessary, it will have to be correct-

ed by enforcing a requirement that a larger percentage of reserves shall
be deposited with the reserve banks.

Yerely to extend the area included

within the territory belonging to a reserve bank would not help, because
such extension would simply enlarge the area without enlarging the proportion of the capitalization of the bank to that of the member banks.
In other words, as fast as the area increased and the capitalization with
It, just so fast would the amount of demand or strain likely to be brought
to bear upon the reserve bank be increased or extended.

This means that

no purpose whatever in the direction of strengthening the reserve banks
is attained by enlarging the area over which they preside, assuming
that a sufficient area has been included to give them a reasonable degree of capitalization at the start.
Secondly, the statement that a very large capitalization
Is necessary in order to inspire respect either abroad or elsewhere
ignores not only the fact that the real strength of the banks lies in
their holdings of reserve funds as just set forth, but also ignores the
fact that the reserve system will undoubtedly be viewed as a unit by
foreign countries as well as by domestic interests.

There is, therefore,

no argument whatever on the side of those who demand that an exceptionally large banking capital shall be assigned to some one or more of the
new insiflutions. The contentions put forward in this connection failed to recognize the united character of the system and the fact that
in case of necessity the reserve board has power to require anyone of
the reserve banks to come to the aid of anyone or more of the others.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-

-9Average Capitalization.
/
An estimate 'of the probable capitalization of the Federal
banks as a whole, assuming that only the national banks enter the system
at the start and that practically all of them do so, or (what comes to
the same thing), that enough state banks enter to make up for any withdrawals of national banks, would give a total capitalization of about
Tao7,000 t000.

The Federal Reserve Act prescribes that the number of

banks to be established shall be not less than eight or more than twelve.
This means tlylt the average capitaliza 3.on of the reserve banks shall be
„eit tsiei
,
not more than one-eighth of 11o7,o o,000, or $18,35o,000 l and not less
than one-twelfth of

1o7,000 l000, or ,1 9,oeo,000, in round numbers.

There

is nothing in the act to indicate a desire or intent on the part of its
framers that none of the banks should be materially larger than the
others, but on the contrary the act has specifically left a large latitude to those engaged in laying out the country into districts in order
that they may exercise their best judgment in apportioning the banking
capital among such districts.

It is, however, obviously true that since

the act requires that no reserve bank shall have a smaller capital than
$4,000 t000, and since the Whole tenor of the law and of the debate on
it was against the creation of one overshadowing institution, the
framers
Of the act did intend that there should be no marked or extreme
disparity
between the capitalization of the several banks.

Inasmuch as the mini-

mum capitalization and the number of banks is fixed it is evident
that
If eight institutions were to be established on the basis
already indicated, the maximum size which could be given to any one of them and yet
comply with the law would be $79,000 p000, while if twelve institu
tions
were to be established the maximum size thus assignable would be !
- 63,
000 t 000.

To these limits the organizers of the act could go without

violating the letter of the law.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Such a variation in size of the banks

3

-10would, however, be a manifest violation of its spirit.

The same is true

of the proposal to establish three or four very large banks
jmade by the
bankers athe hearings.

This latter plan in turn repeats the proposal

which was urged during the debates on the bill that there should be not
to exceed four reserve institutions.

That plan was an alternative to

the plan of a single central institution and was rejected in the same
way as the central plan.

If the recommendations of the bankers of New

York, Chicago and St. Louis were to be accepted, the country would be
practically divided up between these centers except insofar as a fringe
had to be left to comply with the requirements of the law.

Worked out

in practice and harmonized with one another to some extent, the
suggestions of the bankers in these three cities would lead to the establi
shment
of eight banks of which three should be very large and five mall.
the five were kept down to the minimum capitalization of

If

di,000 p000,

there would be left 11;84,000,000 for division between the three centers
,
or an average of $28,000 l000 as the capitalization basis for the reserve bank in each place.

It is not believed that this would be a com-

pliance with the law or that the bankers in those places submitted any
evidence showing that such a capitalization should be assigned.
Assuming this reasoning to be accepted, a first approximation towards a plan for laying out the proposed districts
can be arrived
at as follows:
The largest of the reserve banks to be located at the principal financial centers of the country should have a capital
ization
Whose minimum limits should be in the neighborhood of 19,000 l000,
or less
and whose maximumilimitsshould certainly not exceed

28,000 l000, and

Should preferably be very much smaller than that amount,
--as much smaller as the convenience and customary course of business
will permit.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-11Fundamental Principles/
The fundamental principles of a positive nature upon which
the process of districting should be carried out may now be laid down.
(a) The act calls for not less than eight nor more than
twelve districts; it leaves the choice of the number within these limits
entirely open and to be decided without prejudice.
(b) The plain intent of the framers of the act was to establish a number of different and independent institutions, each sufficiently strong to care for itself without the necessity in normal
times of depending upon any other.
(c) The institutions to be created should, therefore, be
reasonably similar to one another in size, without attempting to bring
about any artificial similarity, and should be located at such points
as will most nearly convenience the business of the country.
(d) The creation of any one larr,e bank should be avoided,
moaning by large bank, a bank so preponderating in importance as to
make it ipso facto the most conspicuous and by far the strongest element
/
in the system; while at the same time it should be sourrht to avoid the
creation of two distinct classes of banks, one consisting of large,
powerful institutions, the other consisting of smaller and weaker institutions likely to become dependent upon the neighboring and stronger
banks.
(e) While the law requires that a minimum capital of $4,000,
000 shall be present in each and every reserve district and while this
requirement must be observed, there is no harm in approaching closely
to it or even in going below this limit so far as the banks are concerned, making up the deficiency by private or Government subscription if
It be true that within a reasonably near future the district will pro-


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C
7o

-12-

bably advance in wealth and capital so as to make the establishment
of such a bank desirable.
(f) Special study should be given both in establishing
the districts and in establishing the point in each district where the
headquarters bank is to be situated, to the facilities and speed of
transportation both between such point and those at which other headquarters banks are located, and between such headquarters point and the
outlying portions of the district itself.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

General Problem of Districting.
Problem
A general survey of the country for the purpose of districting clearly shows that several distinct problems are offered in connection with the division of the country under the Federal Reserve Act.
These problems present distinct phases and vary from region to region.
'Mile it will not be possible in this study to proceed in an absolutely
consecutive way, geographically speal:ing, in the division of the country,
it will be well to let the study proceed so far as practicable and convenient by grand divisions of regions, recognizing the distinct character
Of the soil, industry, distribution of population, and transportation
Systems of the several portions of the Continent.
A limitation to be imposed upon this general principle of
procedure as well as a consideration which will aid in developing the
different districts is found in the fact that to a certain extent the
sites of reserve banks must be regarded as practically predetermined.
Wherever that is true, for the reasons already generally set forth in
the foregoing analysis it is possible to assign certain territor
y as
definitely belonging to the banks to be placed in the cities aforesaid.
Thereby certain definite limitations necessarily to be observed in connection with the subsequent outlining of the districts are laid down.
Not necessarilyi but certainly preferably, in conforminr, to the
convenience and customary course of the country's business the first three
Places selected as locations of such banks will be
the three central
reserve cities of the present banking system,--New York, Chicago and
St. Louis.

Both because they are at present financial centers, because

they are better equipped with railway
and mail facilities than neighborpoints, and because to locate the reserve banks of the districts in
Which these cities are placed outside of the cities themselves, or to
divide the cities between two adjacent districts would seem artificial
and would be inconvenient, it is believed that the choice of these
cities may be regarded as axiomatic. '

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-13aPART II
Having outlined the general plan of procedure it is now
Possible to pro attempt an actual division of the country into districts.
In making such analysis it will be assumed in the first place that the
number of districts is to be restricted so far as reasonably possible
consistent with the spirit and purpose of the Federal Reserve Act.
With that assumption taken for granted, it will be necessary to submit
to certain limitations whose weakness will subsequently be pointed
out
Should it appear in lan that they are likely to injure the general plan.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-14Northeastern Section.
With this general plan of procedure in mindf a beginning
of the analysis may be made in the northeastern section of the country.
In this northeastern section of the country the problem
of districting presents two distinct phases:
---" 1(a)\Avoidance of the drawing of district lines in such a
!
,
way as to include an 4nreasonably large capitalization.
(b) Recognition of geographical and commercial relationships and

connections to the fullestipossiblejextent)under the condit-

ions.
A careful consideration of the state of things on the
r( Atlantic seaboard with these points in mind lindicates the desirability
Of at least three reserve districts on the seaboard and preferably
four, the northernmost including New England and such adjacent territory
as may be deemed necessary, the second including the Metropolitan district of New York and such adjacent territory as may be requisite, the
third embracing the territory south of the New 'York district and extending far enough to the southward to provide adequate capitalization
for the bank of the district and to include all that region naturally
dependent upon a northeastern city for banking connections, while the ,
fourth would take in the remainder of the extreme southern territory
and might be joined to or become a part of a general southern district
embracing the cotton growing region.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.7 0

-15New York District"
In dealing with the northeastern section of the country
a beginning may be made with 1\ew York City and the district which is to
be assigned to it.

Any lengthy argument with reference to the desira-

bility of New York as a location for a reserve bank may be waived and
it may be assumed that that place may be the natural as it is the most
convenient site for a reserve bank in the immediate region in which the
City is located.

Although it was proposed during hearings in New York

by one witness to divide New York City itself into two parts, one to
belong to each of two different districts, such a suggestion as well as
the recommendations of others who favor the omission of New York entirely from the list of reserve cities, are too artificial or too obviously
controlled by prejudice of one kind or another to be very seriously regarded.

The claims of New York City to a reserve bank are based not

only on the fact that it is today the principal financial center of the
United States but upon the further fact that it is also the chief center
of exportation and importation and that convenience in the handling of
paper would indicate the desirability of locating a reserve bank there,
even though it might be held that a branch of an institution located
elsewhere could perform the service to all intents and purposes as effectively.

The argument in favor of locating a bank at New York is so

strong as to need no further development.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cl

-16Size of New York District.
.
,
The smallest size that could be assigned to the New York
district, for obvious reasons would be the territory included in greater
New York.

If the capitalization of the reserve bank of the district

were to be based upon the capital of the national banks of greater New
York on the basis of 6 per cent of capital and surplus it would amount

6 0,„ ,z;
to $254,000 p000.

This would be ample to meet the requirements of the
4
act judging from the standpoint of average ca -Atalization. It may
reasonably be felt, however, that capitalization would not be so large
as to preclude a further addition to it.
(?'

If there are business condit-

ions that seem to demand the extension of the limits of the district
beyond those which would thus be assigned to 1teLAA4
A study of the facts as to the New York district appears to
Indicate conclusively that there are good business reasons for favoring
such an extension of the district beyond the limits assigned in the way
indicated.

The densely populated area on the extreme eastern shore of

New jersey is practically a part of New York City for business purposes
and should be included with it.

This was the testimony of New Jersey

bankers who appeared at the New York hearing and there is no reason to
question their argument in the matter.

It is the present opinion that

good evidence has been presented in favor of permitting the southern
boundary of th- district to be carried somewhat beyond the town of
Elizabeth, New Jersey.
On the other hand reasonable argument has been adduced by
Southern Connecticut bankers at the New York hearing in favor of grantInc to them connection with the New York district.

There is a conflict

Of opinion as to precisely how far southern Connecticut should thus be
included, but the present belief is that the northern line of the district should not be carried further than the Connecticut River.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

For
/./P;/

geographical reasons, and owing to considerations of transportation
convenience, the whole of Long Island should also be included while for
similar reasons it is believed that the extreme southern tip of the
mainland territory of New York State should be added.

It would not be

wise to carry the district farther up into the State than absolutely
necessary because of the undue increase in the amount of the capitalization thus made tributary to the New York reserve bank.
In estimating the capitalization of the reserve bank of
New York, it will be noted that the combined capital and surplus of the
national banks of New York and Brooklyn is $254,000p000, while the estimated capitalization of that portion of Connecticut suggested as a
Part of the New York district may be taken as one-third of the Connecticut banking capital and surplus, or

l.c),5oo v000.

The portion of New

Jersey included may be estimated as probably 33o,000 t000 l or about twothirds of the capitalization of the State while the small strip of New
York territory outside of the city contains possibly one-fourth of the
4
State capitalization, or approximately 4 :i21,000l000.

There would thus

be a total bank capitalization in the district for the purposes of the
act of about '3l5,00o,000.

On the 6 per cent basis this would provide

a capital for the reserve bank of the district of about f;19,000 l000
Which it is believed is amply adequate to the purposes of the institution.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-18// (1~-2
Analysis of Testimony.
At tl,e New York hearings, January 5-8, (Hearings, Jan.5th)
two lines of argument were adduced:
(1) To the effect that great size for the New York district

.411

was not necessary for the purpose of providing a dominating bank of large
capital.
(2)To the effect that the size of the New York district
was of great importance in order to provide a single strong institution.
In support of the latter contention, much was said that
needs no analysis and many suggestions for the inclusion of very large
districts were put forward.

As s-tlen from the introductory argument in

this memorandum verir little soundness is believed to inhere in these
views.

The large bank idea, therefore, needs no particular discussion

as developed at the New York hearings.
Practically, therefore, the only feature of the testimony
that needs attention is that afforded by the testimony of certain bankers and other witnesses as to the inclusion of a small territory adjacent to the city.

Examinations of these portions of testimony shows

that the areas strongly urged as appropriate integral parts of the district were those along the New Jersey shore which were said by New
Jersey bankers to be properly a part of the New York district (minutes

pp. 287-93), those relating to the inclusion of a small portion of New
York State (minutes, passim), and those relating to the inclusion of
Connecticut west of the Connecticut River, (Hearings pp. 525 ff, 662 ff,
etc.)

The argument in favor of including each of these areas was that

It was closer to New York City than to any other banking center, had
Closer connections with New York than with any other, and was likely to
get better accommodations there than elsewhere. It is believed that
these areas, being really portions of the Metropolitan district in the
larger sense of the term, should be included as a mere matter of convenience.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

çr

(Revised)

-19-

Description of New York District.
Following the principles already laid down, therefore, we
may describe the New York district as follows:
Beginning with New York City extend the boundaries to the
northern end of Long Island, and then crossing to the mainland follow
the line of the Connecticut River to tie northern boundary of Connecticut, thence connecting by a straight line with the northern boundary
Follow the Pennsylvania boundary

of Pennsylvania, north of Carbondale.

south to Easton, and from there draw a straight line due east to the
coast.

The district thus described is indicated on the accompanying

map.mad ix mmakmAxix
Capitalization
The capitalization of the New York district on the basis
.suggested would then be as follows:

,
X
A'?•••

State or City:

dpital andz
Surplus
,--

B ro okl yn
I)
/
s
,
tZi

V

New York Cityy,

$

4,9oo,000

249,300,00o

vi

•

J New York State, one-fourth estimated,,

21,5oo,000

New Jersey, two-thirds estimated,

3o,5oo,000

Li Connecticut, one-third estimated,

lo,400l000

- -1 Total
,:
(/
_
Pk"
i
,
,Caoitalization of reserve bank at eg
d

$316,600,000

1996,000

\


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

; et -0.
,
4. tt

tty

), • is,!%.-1„7 tr,',, i'
"
„Y.
..
4
1 '
41",t ek.
o
— A.-------- -

0

1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Map of New yort District

0
Boston District./
As New York is the most conspicuous and most immediate
point at which to organize a reserve bank at the northeastern section
of the country, taken as a whole, so Boston in the extreme northeast,
or New England area occupies a similar position.

By commercial affil-

iations, by size, and by transportation as well as, on the
whole, by
geographical location, Boston is the point in New England
at which a
reserve bank should be located,--assuming that New England
is split
off from New York and allowed to constitute an independen
t district.
As is shown in the analysis of testimony before the Organizati
on Commitee there were sundry bankers who desired to see the New Engla
nd
States a part of the territory assigned to the New York
district.

The

considerations which have already governed us in delimiting
the New
York dintrict afford a conclusive answer to any suggestion
that the
New York district be made to include New England.

This leaves only the

question whether there is any district to which New Engla
nd might belong or with which it might be associated instead of assign
ing it to
an independent district.

A glance at the map shows that geographical-

ly there would be no argument for such a course, while
on the other
hand transportation conditions would not favor it.

There remains only

the question of banking capital and a brief survey
shows that the capital of the New England States is amply sufficient to
afford the basis
for a reserve bank.
Summing up, therefore, it may be said that when regard
is
had to the amount of banking capital in the
country and the necessity
and propriety of making a satisfactory divis
ion of it among the several districts it will be concluded that at least
one other institution additional to New Yorks in the northeastern
part of the United
States will be needed. That this should be located
at Boston is the
,obviou5 conclusion.in_view of the following con2iderat
ions:
-,(a) (WEngland constitutes a distinct and separ
aie sectIon by itself.
(b) There is no commercial center in New England which
''(\ rivals
nking or business headquarters.
 Boston as a
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

)U

-22
-

Dino

Outlines of District.
As will be seen from the analysis of testimony presently
to be presented, the hearings held at Boston indicated a practically
unanimous desire on the part of New England bankers for the establishment of a reserve bank at Boston, such bank to embrace within its territory the whole of the New England States or nearly that amount of
territory.

Examination of the record shows that the only doubt of a

secret character related to the Southern part of Connecticut, which it
has already been decided for reasons stated in this report to attach
to the New York district.

This would leave the New England States,

with the exception of about one-half of Connecticut, as the territory
of a reserve bank located at Boston, assuming that capitalization conditions would permit.

Examination of the capital stock and surplus of

the national banks in the New England territory as indicated seems to
show that the aggregate would be about $1550000s000, 6 percent of which
would be about $9,3oo,000.

the

The figure thus indicated is well within

limits already tentatively outlined and the question may, there-

fore, fairly be asked whether there is any additional area that might
properly be included.

An examination of transportation conditions

shows that the eastern and northern part of the State of New York is
geographically closer to New England than it is likely to be to any
other reserve district, not excepting that with headquarters at New York
City.

A certain section of northern and eastern New York may, therefo
re,

to good advantage be included in the New England district.

There is no

positive evidence available as to precisely how great an area this
strip
should ha cover, but convenience would suggest that it be
made to include all the territories east of a line running paralle
l to the 76th
meridian, touching the St. Lawrence and the Canadian border
east and
north of Ogdensburg. It is estimated that this territory
will probably
add about one-third of the bank capitalization of the
State of New York
outside of the cities besides the city of Albany. This would
add about
$28,000,000 of country capitalization (and surplus) and
about $4,3oo,
000 in Albany. The total bank capitalization of the
New England district
would then be $187,3oo l000, while tts reserve bank would have an approximate capitalization of 11,238,000.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

kji

-23Analysis of Testimony.
At the Boston hearings, January 9-10, (Hearings Jan. 9 &
10) practically little or no serious division of opinion occurred, most
of those who testified being in favor of a New England reserve district
with headquarters at Boston and including generally the New England
States.
The arguments in favor of this point of view were generally speaking, as follows:
(aY1The economic independence of New England and the genera
l
0

capacity of the region to take care of its own necessities.
(b) The geographic situation in the New England territ
ory
and the convenience from transportation and other standp
oints of having
a headquarters bank at Boston.
Possibly the chief point of difference of opinion
related
to the treatment of the portion of Connecticut west of
the Connecticut
River which in this memorandum has already been assigned
to the New York
reserve district.

There was an evident disposition on the part of
some

to retain it as an element in the New England reserv
e district,(minutes
pp. 662 ff).

This view, however, does not appear to have had
the sup-

port of the bulk of the bankers likely to be affect
ed by the transfer
of the area to the New York district.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

24
Description of Districts
From Calais on the Atlantic seaboard, follow the boundaries
of the State of Maine, New Hampshire, Vermont and New York to a point
on the St. Lawrence River, north and east of Ogdensburg and due north
of the intersection of the northern and eastern frontiers of Pennsylvania.
From this point proceed due south to the Pennsylvania frontier at a
point due west of a line formed by producing the southern boundary of
Massachusetts to its intersection with the line already indicated.

Pro-

ceed due east to the intersection of the western and southern frontiers
of Massachusetts and follow the southern frontier of the latter State
to the Connecticut River.

Follow the Connecticut to the Coast and then

Up ±m the Coast to the original point of departure.
„,----?'
_,..i>,- - .,- • ....--7
,
(1-,i (-,
#
/
Capitalization/
I •
t,tate or City,

Capital and Surplus
,.,..._,.,
K
$ 11,5oo l000

L, Maine,
tj New Hampshire,

8,600 p000

Vermont,

7,000 p000

Massachusetts,

48 l000 tooe

Boston,

48 l000 s000

Rhode Island,

lo,800l000

Connecticut, two-thirds estimated,

21,000,000

New York, one-third estimated,

28 l000,000

Albany,

4,3ool000
Total

Capitalization of relprve bank
.
MG, pe ent.
L47


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$187 13oo p 000

11,238l000

Map cf


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

evi EnGland District

llauItu1 •

Bangor. Machias.
a

caster

Burlingto
Lew
Rut and
*
Utica

Coricord
lanclo ter
.1 e"
Fitchburg.

Bennin 41.011
s
6.5%

Belf
Aucu

'Sten •

Pittsfiv 1.
id

-26Philadelphia District.
Assuming that the New York and Boston districts
already
sui'veyed are assigned the limits herein suggested, the
proble- will then
be' presented of dividing the country immediately south
and west of those
ditricts.

Turning attention first to the region immed
iately south of

Nee York, the first fact of importance to be considered
is the existence
of Philadelphia as an important banking center.

For reasons already

stated, Ph;ladelphia cannot be included in the New
York district and the
question is Urns raised whether it can properly be
made the head of a
district of its own or should be included in some
other. At first sight
UTM argument is in favor of the establishment of
a reserve bank at Philadelphia, and a variety of considerations appear
to strengthen this view.
The triial national bank capital and surplus of Phila
delphia
is about $62,000l ou-3, so that a district of consi
derable size outside
of the city could be added to it without unduly
enlarging the size of the
reserve bank to be there established. It is
obvious that certainly the
eaptern portion of Pennsylvania already tribu
tary to Philadelphia would
naturally be assigned :T , were a reserve bank
4,
to be established at that
plaae. Geographically 'and from the standpoint
of transportation the
district which would naturally fall to Phila
delphia would be the whole
of the eastern part of the State,--that is
east of the Alleghany Mountains. The total capitalization of Pennsylvan
ia, inclusive of surplus,
of national banks (outside of Philadelph
ia and Pittsburg) is approximately '$142,000,000. Of this probably one-half
would be assigned to Philadelphia if a line were drawn from the point at
which the western boundary of Maryland touches the southern
boundary of Pennsylvania diagonally
to the eastern tip of the southern boundary
of New York. This would be
a total of $71,000l 000. Included in the
same general geographical and
banking territory are likewise the southern
portion (two-thirds) of New

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-27Jersey not included in the New York district with about
$3o,000,000 of
capital and surplus, the State of Delaware with about
$3,3oo p 000, the
State of Maryland with about

9,00o,000

the City of Baltimore with about

0.8,7oo,000 and the District of Columbia and Washington
with about
Soo p000.

11,

An analysis of the testimony offered during
the hearings at

Washington seems to show that the banks of Virginia
are considerably
closer in their connections with those at New York,
Philadelphia and
Baltimore than they are to the institutions
south of them. Although the
testimony with reference to North Carolina is
somewhat less satisfactory
it appears that much North Carolina business tends
more easily southward.
There would, therefore, appear to be a good
argument for throwing practically the whole of Virginia with the same gener
al territorial region as
that already under consideration. Should this be
done there would be
added further capital and surplus of national
banks aggregating about
$29,3oo toco. The total capitalization thus
assigned to what may be called the Philadelphia district would thus be in the
neighborhood of

235,

000,000, while the capitalization of the reser
ve bank of the district
would be about :-t14,lool000.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4/a/

-27aAnalysis of Philadelphia Testimony.
The testimony relating to what is hero called the Philadelphia district (minutes at Washington, Jan.

pf

)2

relates largely

to the demands of various groups of bankers for a district of the size
and inclusiveness desired by them, or to the supposed desirability of
placing the headquarters of the reserve bank of such a district, if established, at some city favored by one or another of the contesting
speakers.

Some portion of these arguments may be considered at a later

point in connection with the question of establishing the headquarters
bank of the district.

For the purposes of the districting itself, it

is desirable chiefly to notice the trend of the testimony with respect
to the borders and particularly the southern extension of the district
as a whole.
There was a distinct demand at the Philadelphia hearing
for the placing of a reserve bank in Charlotte, North Carolina, or in
case that were not granted for the inclusion of North Carolina with the
district which was to include Philadelphia.

C. A. Bland, speaking for

Charlotte, outlined however a southern district with Charlotte as the
proposed headquarters, such district to include, Virginia, North Carolina, South Carolina, Georgia, Florida, and possibly portions of Kentucky
and Tennessee.

FroT this the inference may be fairly drawn that North

Carolina can without serious damage be placed in a southern district.
Levi I. Rue, representing Philadelphia, asked for New Jersey, Pennsylvania, the District of Columbia, Delaware, Maryland, West Virginia, Virginia and North Carolina, and contended that Virginia and North Carolina
trade moved northward.

C. R. lAller, speaking for the Delaware Bankers

Association, unequivocally favored Philadelphia, while Samuel McCracken,
for the bankers of Wilkesbarre, Pa., was equally clear in presenting
the demand of his section for a bank at Philadelphia.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Charles McKnight,

-27b-

President of the Pittsburg Clearing House, was positive in his statethat a separate reserve bank should be created at Pittsburg, asserting that all of the trade West of the Alleghanies goes to Pittsburg
or centers around it.

On the other hand, the argument of Baltimore

showed a marked similarity to that presented by the representatives of
Philadelphia, except of course as to the location of the headquarters.
The same was true of Washington.

Richmond (minutes pp. 818 et seq.)

spoke positively for a plan that would associate North Carolina and
South Carolina with hor with headquarters at Richmond.

This argument

was largely based upon the trend of business northward to Virginia from
North Carolina while various bankers from that region testified that
they received few checks on Southern cities.
The general conclusion to be drawn from the testimony is
that Virginia should unmistakably be thrown into a district with headquarters in the north, while North Carolina might go to either section,
being a debatable territory, no harm however resulting from associating it with a southern district.

In the same way West Virginia is

clearly thrown toward the Great Lakes, while the States of the Eastern
seaboard between Virginia and Pennsylvania are grouped in a sea coast
district.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-28Description of District,'
Starting at the point where the southern boundary of the
New York district intersects the Atlantic Coast line, follow the coast
line southward to the intersection of the southern boundary of Virginia
Follow the southern boundary of Virginia westward t
tfitAte
te-ia._
intersection with the West Virginia borderaFen follow the latter

with the coast.
a-

4E4f-rat

northward and eastward ,then westwardOround the northernmost extremity
of the State and northward to its intersection with the northern border
of Pennsylvania.

Connect this point of intersection with the eastern

end of the southern boundary of New York.
Capitalization4
raapital and

/State or City:

urplus

Pennsylvania, estimated one-half,
()( ;14'
'‘
Philadelphia,
ci

$ 71,000,000

New Jersey, two-thirds estimated,

3o,000,000

62,000,000

Delaware,

31300,000

Maryland,

9,000,000

Baltimore, ,

18,7oo t000

Washington, and D. C.

11,800 p000

Virginia,

29,300000
Total

$235,0000000

Oapitalization of reserve bank td6% .

$14,loo,coo

r

"


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

a


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Map of P:,iladelphia District

I
I ME
Yre417INGTO
redericksburg
Charlottesville
Lynchburg RICHMOND•
Roanoke
Danville

Petersburg

4/0

-30Eastern Extension of Chicago/

c9

The next step in the process of division may be taken by
determining the eastern extension of the Chicago district, it being
assumed in the case of that city as in the case of New York that a
reserve
bank is certainly to be established there.

Chicago's location on Lake

Michigan, and the fact that the State of Michigan is in a distin
ctly
independent geographical area makes the establishment of the Easter
n
boundary of the Chicago district merely a problem of ascert
aining from
the testimony before the Organization Committee, how far eastward
bankers
actually desire to be included in the Chicago territory rather
than to
be thrown into any territory farther to the eastward, and how far
their
desires are reasonably reconcilable with the expediencies of
the case,
and the welfare of the other districts.

Without entering into the argu-

ment at this point, it may be noted that later analysis
of the evidence
will show that it was the desire of Indianapolis banker
s to be included
in the Chicago district and that there was little argume
nt of conclusive
character in favor of carrying the eastern extension of that
district
much further east or much further south than the City of
Indianapolis.
It is clear then that the eastern boundary of the Chicago
district should
be a line so drawn as to fairly include the City of
Indianapolis and
the immediately adjacent territory.

For reasons that will later appear,

this line has been drawn from a point slightly south
and east of Indianapolis to the point where the northern border of Indian
a touches Lake
Michigan.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-31-

1

A

Great Lakes District.
An important district is now partially outlined between the
eastern extension of the Chicago district, the western boundary of the
Philadelphia district and a district probably to be established to the
south.

Included in the same area should undoubtedly be the southern

Jyat-

peninsula of MichigaT

An examination of this territory shows that it

Is geographically united and that its transportation facilities indicate
the desirability of keeping it within one general region or district.
The quetion to be settled, should it be sought to recognize such a
Great Lakes district would be the desirable boundary line to be established at its southern and southwestern extremities.

Geographically con-

sidered the natural southern boundary would probably be the southern
line of Tennessee, although only the eastern portion of that State would
be included.

The argument presented to the Committee at Cincinnati,

(Brief of Thos. H. Kelley) recognize' this geographical basis for the
southern boundary and the same is true of other data filed with the Committee.

The verdict which would thus be given is, however, modified by

a study:
s
_
--1A a) Of transportation.
(b) ,Of capitalization available for the other districts to
the south.
The second of these factors suggest the desirability of
leaving actually debatable territory in Kentucky and Tennessee to the
Southern districts that might employ it to good purpose.

The study of

transportation referred to would place the southern boundaries in such
leave
a way as to karst Louisville and the territory tributary to it to the
northern district, while throwing Knoxville and the territory tributary
to it into a southern district.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

It would seem, therefore, as if a line

-32-

midway between Louisville and rashville and midway between Louisville
(or Lexington and Knoxville) cutting off probably one half of Kentucky
(outside the cities) would be the desirable boundary.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1/07
-33-

Analysis of Great Lakes Testimony.
The testimony directly applicable to the Great Lakes district was taken at Cincinnati on February 16, (minutes pp. 4348 ff.) and
at Cleveland, February 17, (pp. 4525 ff.).
Excluding the 7enera1ities and pleas for a large district,
the testimony at the two places was very similar and in general accord,
except for differences with reference to the extension of certain of the
proposed borders of the district.

The main idea (as expressed for example

by J. J. Sullivan the President of the Central National Bank of Cleveland)
was that a natural district exists between New York and Chicago comprising
the Great Lakes territory which should be separated both from the eastern
seacoast and from the Middle West.

Throughout the testimony it is re-

cognized either directly or incidentally that two districts might be
created in this Great Lakes territory but that one might well comprise
the whole on the ground that from a transportation and business standpoint
the area is well knit together.

At Cincinnati W. S. Rowe, President of

the First National Bank of Cincinnati, asked for a district including
Ohio, Indiana, West Virginia, Kentucky and Tennessee, wth a capital of
probably $12,000,000.
tory.

Other speakers xpnkax2mx urged very similar terri-

Mr. Rowe rlhowed that relations with Louisville were intimate and

that those with Nashville were also fairly close although distinctly less
so than with Louisville.

Louisville has 506 accounts in the proposed

district, while Nashville has 274, of which 20 are in Kentucky and 254 in
Tennessee.

The southeastern boundary of the district was indicated by

C. A. Hinsch, who pointed out that Wheeling, West Virginia and its adjacent
)
terA.tory belongs to Pittsburg, while J. S. Hill of Charleston, West Virginia, showed that the banks of that place and the neighboring country
desired to be assigned to the Cincinnati district.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

R. L. Archer of

(9 I

-34-

Huntington, West Virginia, confirmed this view by showing that the
banks of southwestern Virginia wished to be assigned to Cincinnati.
Turning to the northwestern boundary of the district, it is
found that W. E. Baker of Vincennes, Indiana, showed that the majority
of banks in his region desired to be assigned to Cincinnati, only a few
desiring to go to Chicago.
uation.

Other speakers indicated much the same sit-

M. S. Sontag, Vice-President of the Indiana Bankers Association,

explained that the southern part of Indiana favored assignment to St.
Louis or Chicago, many preferring Chicago but admitting that the region
as far north as Vincennes might well go to St. Louis.

C. H. Church of

Muncie, Indiana, favored Cincinnati as the location of the headquarters
bank for his region.
Regarding the southern boundary, it was shown by J. S. McHenry of Nashville, on behalf of the Clearing House of that place that
Nashville would be satisfied with an assignment to the Cincinnati district, notwithstanding that it wanted a reserve bank itself and had
close connections with the Southern States.

A like situation was indi-

cated as to Knoxville.
L. F. Kiesewetter, the President of the Columbus Clearing
House, took much the same view as other witnesses already cited, except
that he desired that the site of the bank be in Columbus, holding that
the district could include Ohio, Western Pennsylvania, Western New York,
Southeastern Michigan, Eastern Indiana, northeastern Kentucky, and Northwestern West Virginia, with a capital of about $16l 000 p000.
On the whole, it is believed that the testimony shows that
the southern boundary of the district should run between Louisville and
Nashville, the evidence confirming the belief that the boundary already
formed by the eastern seacoast districts has been correctly estab'ished.
The bearing of the evidence on the western and southwestern boundaries
may be discussed further in connection with Chicago and St. Louis districts.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-35-

Description of District.

.
0
'

Following the principles just indicated, the Great Lakes
district may be outlined as follows:
From the southeastern corner of the Chicago district
proceed due south to a point
and Nashville, Tenn.

in Kentucky midway between Louisville

Draw a straight line from this point to the in-

tersection of the boundary of Virginia with those of Kentucky and West
Virginia, for reasons of geographical and transportation convenience.
Follow the boundary of West Virginia eastward and northward, ultimately
reaching the intersection of the western boundary of the Philadelphia
district and following that due northeast to its intersection with the
southern boundary of the State of New York.

From this point draw a

straight line due north parallel to the 76th meridian, intersecting
the St. Lawrence River immediately north of Ogdensburg.
It will have been noted that nothing has been said in this
discussion with reference to the headquarters of the district referred
to.

The cities in the district which might be properly designated as

the headquarters of the reserve bank include Cincinnati, Pittsburg,
Cleveland, and possibly Detroit, Buffalo and LouiTville.

From the

standpoint of accessibility, convenience and general advantage
it is
believed that Cleveland is probably to be preferred, all things
considered.

The capitalization of Cleveland banks is considerably smaller

than that of Cincinnati, although larger than the capital
ization of the
banks of Detroit.

Transportation facilities at all the points mention-

ed are distinctly good.

The ruling considerations, therefore, should

probably be those of accessibility.

The cuestion of a proper headquart-

ers point is merely touched upon here and will be dealt with
more fully
in the section devoted to that subject.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(Revised)
-36Capitalization
The capitalization of the district
proposed will then be
as follows:
, -/"State or City:
p

papital ancUSurplus'

five-twelfths,
Western New York, amemtkird estimated,/

$ 35,65o p 000

Cincinnati/

2o,3oo,000

Ohio

54,400,000

Cleveland,'

14,400,000

Columbus,

4,7oo,000

Michigan, three-fourths estimated,
;Indiana
4i

one-third estimated,

12,000,000
lo,5oo,000

Detroit,

7,000,000

Kentucky, one-half estimated,

9,000t000

Louisville,

81 2oo,000

Pennsulvania, one-half estimated,

71,000,000

Pittsburg,

48,5oo,000

West Virgini4

16,600,000
Total

$312,25o l000

r dx
Capitalization of reserve ban 616% —


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

4018,735,000


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Map of Gr3at Lakes District

svrego
Syracuse.
Itoctieste;

•Saginaw

Muskegon
rind Rapids

*Flint

.
Ithaca

6

Lansing
DETROIT
rie
Jacksor7
Oath Bend
Wayne.

laraestown Elraira•
Bradford
•

EVELAND
Toledo'
Sand" y •
.? oung.thwn
Akron.
'New Castle
Canton
Mansfield Skeubenville.
.PITTsBUR
Ljnia
reeling
4
•Coluin 11,
tu'i
springfteia
nd •
•
airmont
ricersburg
CINCINNATI
Co ' gton
Charloton
Frankfort Ashland' 'Ir
.1 nt°1'
.
-Icntington

.exng
E
isviLLL 'thn
•Lorl
•Lebanon

-38-

Problem of MIMIN West.
Leaving the discussion of the Southern States to be dealt
central
with at a later point, the Middia West may now be studied. In the
central
Migailt West there is a special problem. A large, pmpalwaxxamAxxlmrth
region without the excessive concentration of banking capital which has
been developed in the Eastern States is to be subdivided.

The problem

Ntist-rofytheyikiieghlimienxandxEaztxmixttmx,ftsztssinot is that of establishing a division corresponding broadly with the commercial habits of the
people, placing together those cities which are most nearly allied to
one another and joining in the same district, territories which are
easily accessible one to anothei by available railway transportation.
The disparity between various cities as possible places for the locating of reserve banks is no longer what it was in the East, but many considerations can be urged in favor of one as against another.
The manifest dictate for' the division of this region is the
establishment of a district includinE the territory bordering on the
Canadian frontier and extending reasonably to the south,
ZrisNXImicos Xm Xlm zasxmart mat zxxxxlmm4 a district embracing Chicago
and the central portion of the country with a Western extension whose
area is to be determined later, and at least one other district embracing
the extreme south and perhaps a portion of the southwest.

It will be

considered later whether the number of districts thus created is sufficient for the fulfilment of t

poses of the act and for the promot-

ion of satisfactory banking conditlons.

At this point ther: can be no
,
,

question that at least the numb r o= districts in this central western
territory, thus indicated is necessary.

It would no doubt be possible

to put the proposed northern area into the same region with Chicago but
In that case the transportation difficulties which, as will presently


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-39-

be seen present themselves in a serious form in any case would be greatly intensified.

In the same way it would be no doubt desirable to es-

tablish from the standpoint of transportation more than one district to
the south and southwest of the Chicago district, but it will be remembered that in this preliminary discussion the effort is being made
to keep the number of banks well toward the minimum prescribed by the
act should that prove to be consistent with proper conditions of capitalization, and proper convenience in clearing and in doing business
generally.

Chicago and St. Louis with the territory belonging to each

are already practically marked out, for the reasons stated earlier in
this discussion, as sites of reserve banks, owing to the trend of business, the habits of the community as already established, and other
considerations of like nature which cannot be ignored.
One further point in this prliminary consideration of the
central western or middle western problem needs to be considered.
Is the relation of the Chicago district to the other districts.

This

For

somewhat the same reasons which were controlling in the case of the New
York district it is desirable that the Chicago district should not be
too large.

The concentration of banking capital in that city is much

greater than am inany other place in the part of the country to which
It belongs and it is the center of a rich and well populated region in
which the density of wealth and of banking capital may be expected to
increase with very considerable rapidity.

That the reserve bank of
reserve
Chicago will grow in size much more rapidly than the others institutions
of the west must be expected arid this consideration with many others
militates against the creation of too large a district ancillary to
Chicago, nrovided other considerations permit its being kept within
reasonable limits.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-40-

Chicago District.
The Midilewestorn district that may to advantage be dealt
with first is that in which Chicago, the central reserve city second
in size in the United States is situated.

Assuming that all national

banks in Chicago entered the system and that no others did so, the total
capitalization and surplus of all institutions thus entering would be
in the neighborhood of $69 l000l000, and the capital of the reserve bank
on the 6 percent basis would be '4,loo t000.

This figure would be bare-

ly above the lower required limit set by law and there is, therefore, a
considerable possibility of expansion of the area to be assigned to
Chicago before the upper borders of the capitalization area to be set
apart for any one institution are approached.
Turning to the testimony taken at the Chicago hearings, it
will be seen that Chicago bankers recognize the desirability of drawing
a line between St. Louis and Chicago which should practically be the
southern border of the Chicago district and the northern border of the
St. Louis district.

It would seem, therefore, that a desirable first

step in apportioning the Chicago district would be that of ascertaining
the approxi-late point between St. Louis and Chicago at which this border
line could be drawn.

It will be seen from the testimony of Southern

Illinois bankers (Hearings pp. 1525 ff.), that Springfield bankers
were
distinctly desirous of being included in the Chicago district
, a fact
which in the absence of any countervailing considerations should
naturally be influential.

On the other hand, barring some relatively unimport-

ant representations concerninr the extreme Southern section of
Illinois,
there was an agreement partly expressed and partly implied that
St.
Louis, if made the site of a reserve bank, should be allowed some
territory north and east of the Mississippi River, which would naturally
be

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-41-

tributary to it.

Examnation of the geographical conditions and of the

banking capital would suggest 'that the line of demarcation
be drawn about
midway between Springfield and Alton, Illinois.

Accepting the point

thus indicated as practically the southernmost of the Chicago
district,
it would seem from the general trend of the evidence prese
nted that a
line drawn parallel to the northern border of Illinois
and passing through
a point midway between Springfield and Alton could
be taken as the southern boundary of the Chicago district within the State
of Illinois.

It

may be estimated probably with approximate accuracy
that such a division
would place in the Chicago district about two-thirds
of the banking capital of the State outside of Chicago City.

As the combined capital and

surplus of the national banks of the State, outside
of Chicago, is about
$51,5oo,000, this would add a total of perhaps $34,0
00,000 to the banking capital of the district and 6 percent of that,
or $2,000 l000, to
the capital of the reserve bank.
In studying the northern border of the district,
it will be
found that during the early portion of the Chica
go hearings a strong
plea was presented for the placing of a reserve
bank in Minneapolis or
St. Paul. According to the argument then prese
nted, such a bank if
located in St. Paul or Minneapolis would
naturally draw to itself some
portion of the territory to the south
of those cities. On the other
hand, it was testified that the inclusion
of St. Paul and Minneapolis
with the part of Minnesota adjacent to them
in the Chicago district
would do violence to the convenience
and customary course of business
of the country northwest of those cities,
unless that also were to be
included in the Chicago district.
Since the inclusion of so large a
territory would almost necessarily lead
to the additional inclusion of
a large parallel strip just to the south
of it, while it would at the

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-42-

same time so enlarge the capital of the Chicago district as to carry
it beyond the limits which would harmonize with the intent of the Federal Reserve Act, the apparent indication of this testimony, taken in
conjunction with the strong pleas of Iowa bankers to be included in the
Chicago district (an argument implying a still further enlargement of
the capitalization of the district), favors the drawing of a line as
already stated between Chicago and Minneapolis and St. Paul which may
be regarded as the northern boundary of the Chicago district.

For the

sake of convenience and in the absence of any satisfactory argument to
the contrary, this line may be made an eastern continuation of the northern line of the State of Iowa, such line to be produced to the western
shore of Lake Michigan a little south to the town of Sheboygan.

Making

this the line of division would throw into the Chicago district the City
of Milwaukee, Wisconsin, now a reserve city with about $91600 l000 of
capital and surplus and would add to the capital of the reserve banks
6 percent of that amount, or approximately $57o,000.

It would also add

the banking territory of Southern Wisconsin outside of Milwaukee, which
may be estimated to include about one-fourth of the banking capital
and surplus of the State (outside Milwaukee) amounting to approximately
$16,3oo,000, or $4,loo p000.

This adds 6

ent of the same amount, or
pet
roughly $24op000 l to the capital of the reserve bank of Chicago.
Turning again to the testimony at the Chicago hearing, it

will be found that argument was adduced by Iowa bankers in favor of attaching very nearly the whole State to Chicago.

The same argument was

presented by St. Joseph (Missouri) bankers who also desired to be included within the Chicago district.

From this it would seem that without

doing violence to the views of the bankers most affected by the arrangement the whole State of Iowa, including approximately $33,400,000 of

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0

-43-

capital and surplus could be added to the Chicago district and that the
same could be done with St. Joseph with $1,800 l000 as well as with the
northern portion of Missouri which, however, would contribute probably
not over $1,5oo,000.

Were this to be done 6 percent of $36,7co,000, or

about $2,16o p000 l would be added to the capitalization of the Chicago reShould this be done, the total capitalization of the Chicago

serve bank.

reserve bank up to this point would amount to about $9,5oo,000.

This

with the probable eastern extension of the Chicago district, if any, would
not be likely to be too great a capital for the Chicago institution.
one restriction need be mentioned.

Only

Inasmuch as Omaha and other cities

located on the western border of Iowa would naturally require a small
portion of territory to the eastward in order to allow for the local trade
which naturally flows toward a neighboring large city it would probably
be undesirable to carry the western border of the district ,as far as the
State line.

For convenience sake, therefore, the western border of the

district may, it would seem, properly be placed immediately west of St.
Joseph, Missouri.

In the same way to form the southwestern border of the

district, draw a straight line from the terminus of the southern border
on the Mississippi River to a point midway between St. Joseph and Atchison, Kans.

Then proceed due north in a line precisely parallel to the

eastern border of Illinois until the northern border of Iowa is
reached.
There remains now only the eastern border of the district
to be adjusted.

Reference to the Chicago hearings Wcxxxxxxx4 shows

that a strong argument was adduced by Indianapolis bankers in favor of
their inclusion within the Chicago territory.

Such an inclusion would

add the capital and surplus of Indianapolis, amounting to about $9,400,000,
and probably about one-half that of the State outside of Indianapolis
which has approximately $31,4co,000.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

This would give

15,7oo p000 in

-44-

addition to Indianapolis, .19,400,000, or

25,loo,000 in all, 6 percent

capitalization of the reof which would add roughly 31,5oo,00o to the
serve bank of the district.

This with the amounts previously assigned

t000 to $12,000,000 for the
would create a capitalization of $11,000
district.
thereTo establish the eastern boundary on this principle,
ict already indicated
fore, continue the southern boundary of the distr
Indianapolis and Muncie,
to a point due south of a point midway between
line of Indiana
then proceed due north in a line parallel to the east
a straight line to
until the latitude of Indiana is reached, then draw
Lake Michigan.
the intersection of the Indiana northern border with
include portions of
As thus laid out the Chicago district would then
exact boundaries
Indiana, Illinois, Missouri, Iowa and Wisconsin, the
on the map.
being as already indicated and the district being noted


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-48—
Map of Chicago District


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Madison.
Janesville.
-

Racine

•Rockford
CHICAGO
Joliet•
Davenport•
Rock Island
tine.
MUM.
Kankakee.
.Ottumwa
yeoria
Burlington.

A/,

4
/)r

-47Capitalization.
The capitalization of the Chicago district may be described
as follows:
Capital and

,-)7State or Ci ty:
04 ,

urplus

Wisconsin, one-fourth estimated,

4,loo s000

Milwaukee,

9,600,000

!Chicago,

69,000,000

;Illinois, two-thirds estimated,

34,000,000

Indiana, one-third estimated,

lo 5oo 000
9,400,000

• Indianapolis,
, Iowa, five-sixths estimated,
1Reserve Cities of' Iowa,

22,000,000
6,25o,000

Missouri, one-fourth estimated,

2,5oo t000

St. Joseph,

1,800,000
Total

$168,15o,000

r;

%
4
apitalization of reserve bankC4t6

<41o,o86l000

w
proposed Western Extension'

/

Nebraska,

5,loo,000

Iowa, one-sixth estimated,

5,400 t000

Reserve Cities of Nebraska

14,25o,000

Colorado, one-fifth estimated,
Denver,
Wyoming, one -sixth estimated,
Total Western Extension

25o,000
7,5oo,000
5oo,000
$
143,000 l000

4 (",

Capitalization added to reserve bank at 6%

Total capitalization


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

02,580,000

12)
666 000
...t

r

of
Analysis of Chicago Testimony.
The testimo ,ly offered at Chicago is of Literest, as as alproposed in
ready been seen in connection with several of the districts
)
this memorandum. A general use of it has already been necessary in
outlining the borders of the Chicago territory in a general way.

It

will not, therefore, be attempted at this point to afford a detailed
analysis of the testimony beyond what has been given, but that will be
furnished in greater detail in a later section of this discussion where
it will be sought to propose a division of the central west based upon
a greater number of districts.
In connection with the subject it is well to note at this
point, however, that an important phase of the testimony from the
present standpoint relates to the question whether the Chicago district
to be established should or should not include the whole of the northwest.

The Chicago banker

naturally uesired such an assignment of ter-

ritory just as other bankers elsewhere had sought to make their proposed
districts as large as possible.

This disposition on the part of the

Chicago bankers was resisted by the representatives of St. Paul and Minneapolis on the ground that the northern and northwestern region belonged more particularly to them.

:heir point of view is, as will present-

ly appear, accepted in this discussion, it being felt that considerations of transportation and future growth in the region referred to militate too strongly against so great an extension of the district to permit it to be favorably considered.

It should be added, however, that

the testimony shows that the northern territory of the United States
probably
if not organized independently should be assigned to the Chicago district rather than to any other.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-45(
Description of District.
Summarizing, we may describe the Chicago district as
follows:
From the intersection of the northern border of Indiana
with Lake Michigan follow the border of the lake west and north to a
point due east of the intersection of the northern border of Iowa with
that of Wisconsin.

Proceed due west to such intersection then follow
a-

ira point midway between Atchison, Kansas and St.
the northernnorthern border 1.1141

Joseph, Missouri.
River.

Proceed due south along 'mob line,to the Missouri

Draw a straight line from this point south-eastwardly to a

point midway between Springfield, Ill. and St. Louis, No.

Connect this

point with the point southeast of Indianapolis already fixed.

Follow

the eastern boundary of the district to the point of departure.
For reasons which will later appear, this district will
not, however, meet the requirements of a districting process based upon
a small number of reserve banks.

It is, therefore, desirable to extend

this district to the westward and in so doing to include other territory
moderately convenient to Chicago or within easy transportation reach.
Without considering the argument for the inclusion of additional western territory at this point, it may be stated that such inclusion1 will
be nearly unavoidable if the number of banks is to be small and that
the limits of such western extension may be best discussed at a later
point.

It suffices to say here that such an extension to the westward

should for reasons to be later studied probably include Nebraska, a
narrow strio in northern Kansas, and the northwestern part of Colorado,
and the southeastern corner of Wyoming.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ADDRESS ALL COMMUNICATIONS TO THE OFFICE.

Die3atmtatofCoutunTrr

MEMBERS OF
THE ASSOCIATED PRESS
PUBUSHERS ASSN OF NEW YORK
AM.NEWSPAPER PUBLISHERS ASS N.

AND COMMERCIAL BULLETIN
32 BROADWAY, NEW YOR K

March 4, 1914.
Hon. W. G. McAdoo,
Secretary of the Treasury,
Washington, D. C.
My dear Mr. Secretary:
Pursuant to the plan suggested in my letter of yesterday
I herewith hand you a second instalment of my report on districting,
bringing the document so far as placed in your hands up to and including page 48.

I shall be able probably to send another considerable

instalment of it tomorrow or next day.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Sincerely yours,

,
ti-v-oerr-

'714

4-3

7-1
4-3
Co

0
D
r.*?.;

,C1
4
0

0
2
,
4
7:3
‘.

•

Aura

atiluaaa•

•I 1,,,11.1 1.1111

uncrayi

•anbnqua

qdat.orls

,
e•lc

•Aauctaltra

nquintoo
viinue.0 :

•mootin
ng 1Pun 3• VIIVW0
0
SatTION .0(1
•

•ool.toraAtk 13 xno!s.
Edpoa pog•

3
irp0

•uol trn1ng
2

pia0upds
/Coup b•

noVultuooig

•autioiauvr
•uosipvic

•ih,v3Awni
•OTIVIE3.1(
puum von .1.1c•duen.ea
•lanor
spoilt
•uolu113 •
09V3IHO
paoppou•

:,1qorti

..Cau.TeaN
puuJo

• ninci...,int
•411,,Td qvoN

0.)nenty.

iv,.

.
3ANaa.oak

•sTzrim

Xapar9
•

eittrILIC7 •

•01111,.)y,

rnoq

•9riPtu.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

St. Paul and Yinneapolis District.
Request was made at the Chicago hearing for the creation
of a St. Paul-Minneapolis district, and in the present anal7sis that
request has been tentatively allowed on the ground that to attach this
territory to the Chicago district would render the latter unwieldy both
In area and capital.

Consideration of the St. Paul-Mi.nneapolis district

In greater detail may now be taken up.
-4

The argument in behalf of the St. Paul and Minneapolis at

the hearings in question were founded upon two principal considerations
(1) the transportation advantages of St. Paul and Minneapolis from the
western standpoint, and (2) the fact that the business of a large northwestern territory is already tributary to them.

4

The capitalization of

national bank in St. Paul and Minneapolis inclusive of surplus is

approximately $23,2oo,000 l while in Minnesota, outside of the two cities,
It is approximately 1$18 15oo p000.

The northern portion of Wisconsin,

north of the northern boundary of the Chicago district, and containing
probably about three -fourths of the total capitalization of Wisconsin
Outside of Milwaukee would be probably

122000 l000.

To this would be

added under the suggestions made at the Chicago hearing the States of
North and South Dakota, Montana, and probably part of Wyoming.

Were

this to be done, there would be added for the Dakotas about $1215oo,000l
and for Montana about $8,000 l000, a combined total of over $2o
t000 l000.
The northern peninsula of Michigan—possessing, however,
only a small
pftportion of Michigan's capitalization, which we may estimate
as probably
not over $3,5oo t000 of a total of $15,000 p000, would also
properly be
included.

This would furnish a grand total of capitalization not far

from :;?,,000 p000, of which 6 percent would be roughly $4T6;
t000, or
sufficient to fall within the requirements of the Reserve
Act.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-5140K2 3
,
1'

Descri -,tion of District'

LD-

To form the St. Paul-Minneapolis district or northwestern
district as it may be called, start at the northeastern corner of the
Chicago district, on Lake Michigan, and follow the coast line of Lake
Michigan north and then west along the Lake Superior coast to the
northern boundary of the United States.

Follow the Canadian frontier

to the intersection of the eastern loundary of Idaho with it, then follow the northeastern boundary of Idaho to its intersection with the
northwestern boundary of Wyoming.

From this point follow the central

line of the mountain range dividing northeastern Wyoming from the remainder of the State to a point due west of the northern boundary of
the State of Nebraska.

This point is the northwestern corner of the

Chicago district, in the western extension already described.

Follow

the northern boundary of the Chicago district to its intersection with
Lake Michigan.
Capitalization/

ec---

a„,r4Orr.

7
'Capital and Surplus
VVVV

State or City:
,t

\St. Paul & Minneapolis 4

V.

$ 23,2oo l000

Minnesota,.

18,5oo,000

Wisconsin, three-fourths estimated,

12,000,000

North Dakota,

7,3oo t000

South Dakota,

5,5oo p000

Montana,

8,000,000

Wyoming, about one-third estimated,

1,000,coo

Michigan, estimated

3
15oo p000

)
R-11--,Total
uapitalization of Reserve Banked-65


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$790000,000

44,756,000

I


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.Ft

e
nnopoLs.

Cods.

Glendive•

Dietz ••

Miles City.

Glasgow•

Newcastle

Sheridan
Buffith,

•Rod Lodgo

•Billing3

.
Lewistown

•Livillgston

•Virginia City

Bozeman
*

.
Havre

Benton

sOreatFall
San
s
dcon/ae
.

'Missoula

•Ba

.RantiIten *Deer
Lodge
Anaconda• •Butte

Abaft.

Vlisk

ValiOy cyt

'Pierre

Yankton

Mankato•

•

Red Wing

LaCrosse

.Eau Claire

•
If
14"-Ilur Aslit on;

.
.
MINNEAPOLIS Sr PAUL

St.Cloud•

Fergus Falls .Brainerd

Moorhead

Duluth

International Fain
Crookston

Mitchell'
Sioux Fall;

'Huron

Watertown*

Aberdeen•

Waivetun

Fargo

Grand Forks

Jamestown.

•Minot

Bismarck.

'Lead
•Rapid City

peadwood

Dickinson
.

•WilliRton

shehoYgan.

Oshkosh•

Green Bay.

1,hpernIng•

'
M'a rctuet''4111111191et

/
7

Sault Ste.Mat

-53Pacific Coast District/

0.9

For reasons which will later be made evident, it is deemed
best to devote attention next to the Pacific Coast.

On the Pacific

Coast the problem of districting once more assumes a distinct form.

The

coast is in some respects more nearly a single geographical area than
the regions which border it to the east.

Although its great size makes

certain parts of it practically independent of others because of diffiaccess, the general type of business and industry, of populat-

culty o

ion end climate is broadly similar from north to south so that if for
)
other reasons it were deemed desirable to make a single district of the
region such action might well be taken, granting that transportation
conditions would permit.

The investigations on the Pacific Coast made

it cic qr that there was a strong desire for the creation of a North
,
Pacific Coast district as well as for a South Pacific Coast district,
notwiinstanding the scantiness of bank capital in the region.
preser

On the

basis of discussion, with the idea of keeping the number of

banks well toward the minimum prescribed by law, this question of a twofold division will for the moment be ignored and it will be assumed that
but a single division is to be established for the Coast. Granting that
that principle is accepted it appears that practically no controversy
exists with respect to the proper outlines of the district or with regard to the location of its headquarters.

The district should extend

from north to south throughout the whole territory of the United States
and should run from the Pacific Coast as far tiastward as conditions of
transportation and general industrial and marketing factors will permit.
As will later be seen,the evidence would indicate that the district
Might safely be allowed to extend as far eastward in its northern and
middle portions as the line of the Chicago and St. Paul-Minneapolis districts.
boundary.

This leaves for determination the southern and southwestern
On this question also there was a very substantial unanimity


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-54-

2>
of opinion at the hearings in San Francisco, Los Angeles and elsewhere.
It wns the general view that the southern and western extension of the
Pacific Coast district should be allowed to glom go as far as the intersection of the Pecos River with the Mexican boundary and that practically all of the territory west of the Pecos, certainly to a point well
toward the central portion of eastern New Mexico should be thrown into
the Pacific Coast district in order that the extreme southwestern corner
of Texas, including El Paso, might be kept with Arizona and Southwestern
New Mexico in the same district, being preferably apportioned to a district whose headquarters was at San Francisco.

This still leaves un-

determined the southwestern frontier of the district from the upper
waters of the Pecos northward.

Upon due consideration it is believed

that the requirements of the case will be met by following the Pecos
to about Roswell, New Mexico, then drawing a direct line from that
point to a point on the Rio Grande River near Albuquerque, New Mexico,
then following the Rio Grande to its intersection with the northern
border of New Mexico, connecting this point by a straight line with
the southwestern corner of the Chicago district.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,

-55Description of District''
To outline the Pacific Coast district on the principles already indicated,

start at the intersection of the coast line of the

United States Nth with the Canadian frontier in the northwestern corner

44-4-

(
follow the Pacific Coast line to the Mexican frontier, follow the Mexican frontier to its intersection with the Pecos River.

Returning",

follow the Pecos to a point marked on the accompanying map near Roswell,
New Mexico, then draw a straight line to a point on the Rio Grande, marked on the map just south of AlbWquerque, follow the Rio Grande to the
northern boundary of New Mexico and connect by a straight line with the
southern boundary of the Chicago district.

Follow the western boundary

of the Chicago district to its intersection with the northwestern boundary of the St. Paul-Minneapolis district, then follow the latter to the
point where the northwestern boundary of Idaho intersects the Canadian
frontier.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Analysis of Testimony
In analyzing the testimony which has a bearing upon the
size and limits of the Pacific Coast district attention must be given
to the hearings at Portland, Ore., Seattle, Wash., San Francisco and
Los Angeles, Cali., and El Paso, Tex.

In dealing with the first four

of the places named, it is only necessary to say that the testimony offered was in general agree7ent that in case but one district on the
Pacific Coast were established, it should include the whole of the
coast from north to south and that no part of this region should be assigned to any other district farther east, while it was also agreed by
all that if but one such district should be established the headquarters
should be at San Francisco.
The interest of the hearings at Portland, Seattle, Los
Angeles and San Francisco becomes apparent when the question of subdividing the Pacific Coast into two or more districts is considered and
an analysis of it may properly be reserved for that part of the later
treatment of this subject which has to do with the subdivision of the
Pacific Coast.
At this point however attention should be given to the hearing at El Paso, Tex., (p. 3101 ff.) at which the relationship
of Arizona,
New Mexico and the extreme southwestern corner of Texas to
the Federal
reserve system was considered.

At that hearing U. S. Stewart and other

witnesses representing the interests of El Paso made a plain request
for the maintenance of the trade territory of El Paso intact,
and defined
such territory as the region west of the Pecos River includi
ng the
southern Portionof New Mexico and the southern part of Arizona.

It was

Pointed out that while the El Paso territory might be assigned either
to
San Francisco or to a more easterly district
the general preference of
the region was for assignment to San
Francisco. Kansas City, Denver

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-57--

and San Francisco were all spoken of withthe evident preference for
,
the latter.

J. G. McNary and others gave the same testimony while C. F.

Solomon of Tucson, Ariz., (p. 3149 ) made Mgr positive demand both to
be assigned to San Francisco and to be associated with the El Paso territory.

W. D. Slater and a variety of witnesses gave corroboratory

evidence.
It is clear that if the bulk of New Mexico and Arizona
were to be thus assigned to the San Francisco territorlywhile Idaho
for like reasons which will be traced at some length later onlis assign7
ed to the same district with Washington and Oregon, the intermediate
section comprising Utah a-- d W4001 portions of Colorado and Wyoming
'
6
would most properly fall to the San Francisco district, in the absence
of any other countervailing considerations.

Only in the evezTof the

establishment of Us reserve bank at Denver, Colorado, would it probably
be desirable to modify this judgment, but as will later be shown the
location of such a bank at Denver is not deemed wise.

The testimony,

therefore, may be regarded as pointing to the conclusion already indicated.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(Revised)

-58Capitalization <

,

The capitalization of the proposed district would
follows: ,
t
6/
x
/
' state or City;

be as

apital and Surplus

Calif ornia-'

30,800 t000

Los Angeles/

9,400 t000

San Francisco/

44,800,000

Arizona„.'

1,800,000

Nevada,,

2,3oo l000

Wyoming, three-fifths estimated/

1,800,000

'Idaho
N, 1
Colorado, three-fifths estimated,,,

5 1loo,000
31600,000

Utah,/

11600,000

Salt Lake City„-'
,

3,400,000

New Mexico, three-fifths estimated ---

2,000p000

Oregon,

7,200,000

Portland,

6,800,000

'Washington,

6,2oo l000

\ Seattle,

5,600,000

pokane,-'

41 2oo t000

Tacoma,

1 1loo l000

Southwestern Texas, one-tenth estimated,

5,2oo,000

t

ELlyTotal
(",
,
/if t...4-'r
‘ Capitalization of reserve bank
`


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$142,9oo t000

$8,574,000

0)1)

,-59114p of Pacific Coast District

•
Belling/aa m
Republic'

•
Colville

Everett
SEATTLE
ei •
Spokane.
°Imp . Tacoma
Roslyn'
•
Wallace.
•
Aberdeen
Wenatchee
•Ellensburg
chehans• North
Colfa x
Yakima.
Moseou •
Pullman •
Dayton.
.
Lewiston
Walla Walla•
.
Vancouvor
Vrangevill
ra
,
iver
•Pendleton
o te Dalles
.La Grande
•Salem
'Albany
Canyon City.Huntil'gto

De ch ut
,
es.

• Weiser
M
aishileld
•
Robeburg

Caldwell
•
Boise

Rexburg•
Idaho

•

FalsNinp

•
silver Ci4Mountain Home
.
Medford
amath piaj
e•

Pocatello.
Twin Falls •
•Lakeview

Landei?
Malad City.

•
I

Logan
.
Brigham.

T
uscaror'a•

'Redding

Spanish Fork:Provo
Eureka.

•Reno

Nevada
.413.1ie°
Mnrysville.

Rawlins
.
Granger
.
Springs
Green River' • Rock

Ogden'
I.Evanston
.SALT LAKE CITY
Bingham
Canyon •
•Heber
.
Lehi

.Elku

winnenin me

•Red
Bluff

Casper

Montpejier
re
P st..4

Eureka

°Virginia City
*Carson City

•Glenwood

Dragon •

•Nephi
•Ephraini

*
Austin
•El

•
Satramento

•Grand
Junction

.pen.
A

Gunnison.
0
00'• Stock
.

ton

•Beaver

roilopali.
No
Pioche.

bons *Milford
.?

•Garay

u(ilIn1d

*San To•e

Monticello'
n
.51. George

.
1
1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

• VisaliaIndependence
Las Vegas

Balla',t

.Grand Canyon
•

Bakersfield

Searchli

ht

Needles
.
Pasadena,
*44
S,
ANGELES
.
• Beiii.7e.

•San Bernardino

Williams•
Jerome.

All

•
Flagstaff Winslow
.
Holbrook*

.Prescott

'Redlands
'Riverside
Santa Ana

Socorro

Phoenix.

,,Globe

Tucson.

OWN
Lincoln'
•Alaatogord

Morerici
.

Florence
' San Carlos

Clit ton

Santa Rita
iilver City
•
.Lordsbutg
Deming •Las Cruces
El Paso

•

-60South and Southwestern Territory.
Reviewing what has been done up to this point, it will
found that seven districts have been established in all, and that
re remains to be disposed of the territory tributary to St. Louis
including everything south of the Chicago district and -Jest of the
ific Coast district, as well as the territory of the southeastern
tes on the Atlantic Coast and the Gulf of Yexico.

A survey of the

id makes it evident that not less than 2 districts must be estabhed in order to cover this territory.

From evepy standpoint,, at

st that number of districts are required in order to satisfy transstation neces:'ities, the conditions surrounding the lending and recounting operation and the indispensable demands of the process aC
?aring.

In forming these districtsl it is evident that either of

) plans might be followed.

All the country west of the Mississippi

rer might be form,,d into a district with St. Louis as its headouart, while all east of the Mississippi might be assigned to another
th headquarters still to be determined.

A review of the conditions

bank capitalization shows that this would result in two very unequal
otricts and that in several ways severe criticism could be passed
on the division proposed.

Postponing to a later point the suggestion

organizing the State of Texas and the ancillary territory as a sepate district, the only other alternative still remaining is to conme the southeastern States district already contemplated west of the
A33iss1ppi River so as to take in a portion of the southwestern terriry.

There is some argument in favor of this plan, so long as the

sumptions upon which the present plan of districting is proceeding
'e retained.

The present prososed plan based on a minimum number of

:nks will, therefore, be carried to its conclusion *ith a division
'the southwest as just indicated.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-61The St. Louis District.
As for reasons stated in the earlier part of this analysid
)
it is believed that St. Louis must be recognized as the headquarters
of one of the reserve banks, discussion may be continued by formulating
the conditions under which a district with that city as its headquarters
must be developed.

In the City of St. Louis itself the -1ggregate capital
,

and surplus of national tanks is approximately $3o p 000,000, 6 percent of
which is $1,800 t000.

It is thus evident that in order to include suffi-

cient banking capital within the district to make up even the minimum
capitalization for the district it will be necessary to take in a very
considerable amount of additional territory.

The first portion of ter-

ritory naturally assignable to the St. Louis district is of course the
remainder of Missouri south of the limited northern portion which for
convenience was made a part of the Chicago district.

It may be estim-

ated that the capital and surplus of the remainder of Missouri outside
the part thus cut off and outside of St. Louis but inclusive of Kansas
City would be about $2o,coo t000.

The St. Louis testimony showed that

the bulk of St. Louis business was drawn from the country south and
southwest of it.

Some argument was adduced in favor of including in

It at least a portion of Tennessee, a portion of Illinois (southern)
and a portion of Kentucky.

These sections of the States referred to

have already been marked off by the establishment of the Chicago district and the Great Lakes district under conditions already discussed.
The real problem is, therefore, as already intimated, the drawing of a
line from the southwestern corner of the Great Lakes district in a
suitable manner to include axxatimfamilarx in the St. Louis district the
territory naturally and properly belonging thereto as distinct from the
southeastern district while making a proper division of capitalization
between the two districts still to be established and at the same time


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

14,N1

-62-

making the best possi- le provision for transportation require-ents in the
two districts.

Bearing in mind the fact that when discussin: the proper

establishment of the southern line of the Great Lakes district we reach
the conclusion that the territory adjacent to :emphis and I:ashville as
well as those cities themselves should be part of the southeastern States
territory as indicated by the testimony taken in Cincinnati and elsewhere,
it would seem that first part of the boundary between the St. Louis district and the southeastern States could be established by connecting the
southwestern corner of the Great Lakes district with a point on the Mississippi sufficiently north and west of Memphis and Nashville to leave
them their natural trading territory.

It is believed that by connect-

ing this southwestern corner of the Great Lakes district with the extreme
southeastern corner of Missouri a proper division of the territory, in
accordance with the testimony taken will be effected.

A straight line

connecting this point with the extreme southwestern corner of Arkansas
Will leave Memphis its tributary territory west of the Mississippi and
throw the bulk of the State of Arkansas into the St. Louis district.

If

from this point a line be drawn connecting the southeastern extremity
Of the Pacific Coast district with the southwestern corner of Arkansas
the territory of Dallas and Fort Worth with the whole region appertaining thereto will be included within the St. Louis district.

Such a

division )
,
faxas is sustained by a study of the transportation situation
cfc
from th map hereto appended upon which are marked out all of the dist
-tricts as finally established.

Analysis of the testimony talen at New

Orleans, Austin, Tex., and elsewhere will moreotver sustain this division
as will later be seen, it being the present opinion that to whatever
City Dallas and Fort Worth may be assigned as headquarters, their business
tends northward rather than to New Orleans.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Thus in the absence of a

-63-

headquarters bank in Texas itself the middle and western region of Texas
is thrown to the north of a line dividing it from the southeastern section of the country in somewhat the way just indicated.

/coo'

Description of Districti

To form the St. Louis district on the principles just indicated, therefore, start at the extreme southwestern corner of the
Great Lakes district and follow the western boundary of that district
north to its intersection with the southern
trict below Indianapolis.

boundary of the Chicago dis-

Follow the southern line of the Chicago dis-

trict west to its intersection with the Pacific Coast district southwest of Denver, then follow the southwestern boundary of the Pacific
Coast district to the Mexican frontier.

Connect the point just reached

on the Mexican frontier by a straight line with the southwestern corner
Of Arkansas and from there draw a straight line to the southeastern
corner of Missouri.

Connect the southeastern corner of Missouri by a

straight line with the southwestern corner of the Great Lakes distric
t
from Which a start was originally made.
Analysis of Testimony 47-

5

The testimony germatiCto the establishment of the St. Louis
district ift77 iaken at St. Louis and at Austin, Tex.
1l

Inasmuch, how-

ever, as the St. Louis district is here marked out largely as as the
result of a process of exclusion, detailed analysis of this testimony
will be deferred for the presentrith the remark that the general
demand
Of St. Louis anAhe interestpelonging thereto
was for the creation
Of a large southwestern section to be included within
the St. Louis
district.

The district just marked out coincides in general with many

ofthefeatureeofthedemandpresentedatSt.Louis.although it does
not carry the district to the Gulf
of Mexico and include New Orleans

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-64-

and the regions adjacent thereto
ifor reasons which have been already
stated

tin connection with the draTing of a line between St. Louis

territory and that of the southeast.
Capitalization.

mi

State or City:

4!.z

Capital and

iYissouri, three-fourths estimated

$

urplus

7,2oo,000

Kansas City, Mo..

11,7oo,000

St. Louis,

29,200,000

Kansas, nearly entire estimated '

i

15,000,00o

Reserve Cities of Kansasi
Oklahoma,

2,800 t000
15,400 p000

Arkansas, two-thirds estimated,
Tennessee, fraction estimated,2
Kentucky, one-eighth

estimated.,

Illinois, one-third estimated,
Indiana, one-fourth estimated.

5,000,000
5oo,000
2,2oo l000
17,000,000
8,000,000

Dallas and Fort Worth,

lo,85o,000

Texas, one-half estimated,

26,000,000

New Mexico, two-fifths estimated,

1,340,000

Colorado, one-third estimatedi

3,2oo,000

\ ,/

Total _

Capitalization of Reserve Bank dat % _
#
6
\\.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

455,390 Y 000
49,319,000

.)
••••-ti

"td6'
A.

Carlsbad

•

Tucunicari•

•:lora
•Las Vegas

•Trinidad
• Raton

•Lawton

Ft.Gibson

Mc Alester.

Shawnee

Muskogee•

Tulsa.

Cleburne'

Ft.Worth•

Greenville.
DALLAS.

.
Ardmore
.Durant
Wichita Falls.
Gainesville. Sherman •Paris

Brownwood•

Abilene.

San Azigelo•

•Lubbock

Guthrie
.
Oklahoma

Enid.

Arkansas City.

Pittsburg,•

Ottawa.
Emporia

Topeka.

eaVeliWur

'Wichita

Newton.

SaUnit

Chickasha.
•Altus

'Garden City

Scott.

•Amarillo

.D,ilhart

•Colorado Springs
'Cripple Creek
•Flomnee
Pueblo'
Roekyford•
Lamar
•La Junta

W
."

°Forsyth

Hot Springs

Little Rock

.Ft.Smith

ST.LOUIS

Jonesboro.

Cairo

Grand Tower

Alton

.Doniphan

•Arlington

•Springfield

•Fayetteville

,Toplin

°Warsaw

Jefferson City'

KANSAS CITY

uwling Green*

-,A410

Ev nsvi e

;Irwin:Ines

OWNS

• Terre Haute

4.0TX;STa


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-65Southern District!
The nilth and last of the districts to be established upon
Avr,_
proposed plan will necessary include the territory of the south;tern States together with Louisiana, a small part of Arkansas and
3tern Texas, it being thus possible to establish a district with a
dun-sized reserve bank and with a headquarters located either at
v Orleans or some point further east.

As this district on the present

An is established entirely by a residual process,it is not necessary
stop at this point for the analysis of testimony taken at New Orientns at Atlanta, that being reserved for a later part of the discussion.
Description of District,?

•-"ss,
/

-

The district proposed for the Southern States may be describ• as follows:

Starting at the southern line of Virginia on the At-

intic Coast, follow the Atlantic Coast and the Gulf Coast to the Mexi4n frontier than follow the Mexican frontier to the intersection of
:le Pacific Coast district with the St. Louis district.

Follow the

-)undary tstimaxxikag (southeastern) of the St. Louis district to its
tersection with the Great Lakes district then follow the southern
indary of the Great Lakes district to its intersection with the
:*Quthwestern boundary of the Philadelphia district.

Follow the latter

o the southern boundary of Virginia and proceed from there to the
oint of departure on the Atlantic Coast.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•Y".:
,
'

-66Capi tanza lion.
The capitalization of the Southern district may now be
described

s follows:

8t te or City',

Capital and Surplus

Tennessee, five-sixths estimated,
Kentucky, one-third estimated,

15,5oo l 000
5,85o,000

North Carolina,

11,300,000

South Carolina,

8,5oo t000

Georgia,

22,9oo p000

Savannah,

1,600 000

Florida,

lo 600,000

Alabama,

16,3oo,000

Mississippi,

5,000,000

Arkansas, one-third estimated,'

2,5oo,000

Louisiana,

5,400,000

New Orleans,
(.
Texas; (eastern), four-tenths estimated,

8,250,000
2o 0800 y 000

Reserve Cities of East Texas,

17,7oo,poo

)
,—L-/
i

Total

banitllization of reserve bank at 6% •


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

?152,2oo t oo°
9,132,000


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I Re,

(

Columbus.

-

ORLEANS•

Baton Rouge

Mobi lo •

.
Jackson
Vicksburg Meridirin

Greenville

•Natchez
Hattiesburg.

'Monroe

*Lake Charles
NEW

A
lexandria'

.Shreveport

waff.....••••11•••••••••••••Vaese
•
.
.
..

AL ESTON

Beaumont
.
Houston. Port
Arthur

•BrYan

B
renhatt•

ANTONT0

Corpus Chrin4
Laredo

•
SAN

Austin.,

Corsicana
*Tyler
•Palestine
• Wilco

Marshan•

00.-* •Camden

• Helena

Marianna

P

Dothan•

Montgomery

13irtningham
;Tuscaloosa

Chattanooga.
•Florence,

Lake City'

Charleston

Tampa

-

Sanford.

•Gainesvill

KSONVILLE

Pos111 "
"

Savannah.

Waycross

Cheraw•

Orangeburg

Columbia

Augusta.

• Tallahassee

.Albany

.Columbus

•
Macon.

ATLANTA

Spartanburg

Charlotte

.
W nston•Salem

•Anderson

Asheville

Knoxville

Johnson City.

Middlesboro

Rome

Murfreesboro
•Columbia

Selma

•Jackson
. EMPHIS
74

'Nashville

*
Clarksville

•

J's'M

•-

•Goldsbor
'Fayetteville •
Newbern

.Raleigh

Weldon.

q-oTal-sTa

-67Summary/

c

W"
(

4<-

In the foregoing discussion the division,into nine districts
has been suggested for the purpose of reserve bank organizations.

It

will be seen, however, that two of these districts, the Chicago district
and the St. Paul-Minneapolis district might without serious violence
to the convenience and customary course of business be consolidated into
one, thereby creating a district extending from the southern boundary
line of the Chicago territory to the northeastern corner of Idaho.

This

district would be clumsy and unwieldy with long stretches of transportIf

ation for checks passing to the headquarters at Chicago from the farflung western and northern borders of the territoryf but it must be admitted that the general drift of transportation and trade would permit
such a consolidation, aided by the establishment of a suitable branch
or branches were it desired to keep the number of banks down to the
minimum of eight established by law.

It may be said, therefore, that

the plan just mapped out provides for the organization of either eight
or nine districts with a reserve bank in each, the territory of the
said eight or nine covering the whole of the United States and providing a reasonably practicable division of the territory.

That this div-

ision is in certain sections of the country far more satisfactory than
in others must be obvious, but this condition is unavoidable, in view
of the irregular distribution of population and of banking capital, as
well as the differing character of transportation facilities, if it be
desired to adhere as closely as possible to the smaller number of institutions indicated.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4 -'7;
/

/

Q,

0
PART III,
It is now worth while to consider with care the effect
that would be produced by altering the assumptionx of preconception
Upon which the plan of districting already outlined was in part based.
This it will be remembered was the view that the number of districts to
be established should be kept down either to tie minimum prescribed by
the Federal reserve act or very close to it.
44/c4.4L—
In laying aside this basic idea it is tiAmIWO4Phigvad to recall that such action permits the addition, of not more than four fresh
districts and as many banks, to the minimum number of eight, or if the
division into nine districts already suggested be regarded as the basis
from which to start, it permits the addition of not to exceed three more
such districts.

First of all, therefore, it should be inquired how the

addition of even this

maximum number of three or four additional dis-

tricts would generally affect the plan already proposed.

Remembering

the general principle that it is not desirable, if such a result can be
avoided, to create districts containing banks of an unduly preponderant
capitalization, while the language of the Federal reserve act itself
has forbidden the establishment of unduly small districts, the conclusion will be reached that the division of the northern and eastern part
materially
of the country already proposed probably should not be s
,Fhanged even if
an unlimited number of banks might be established.

While with such an

unlimited number certain changes might be made in the north and east
they would be practically changes of detail rather than of principle.
The difficulties in the process of districting are found in the central
west, northwest, southwest and southeast *here capital and po?ulation
are more sparse and where transportation is less satisfactory.

In the

last analysis the problem of rearranging the districts so as to include
a larger number will result simply in the divisionof these sections of
the country into more compact and convenient units. We may now turn to
details.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

‘-`

P"-

-69-

0
Weak Points in Proposed Plan
9 (already suggested
An examination of the plan of districting XXIAAxpiWIWPS4
will indicate at once certain points of distinct weakness in the proposals made.

These are as follows:
In the district proposed for the Southern States the
1.'

area of territory suggested is very large and the transportation between its eastern and western borders is decidedly unsatisfactory.
2. In the Pacific Coast district the area is extremely
large and the time of transportation between its northern boundary and
its probable central or headquarters point is very great.
3. The districts in the area between the Great Lakes and
the Mississippi on the east and the Rocky Mountains on the west are
likewise large in area and in the central part of the country somewhat
unsatisfactory in transportation.
4. The Great Lakes district as mapped out is widely extended and while its transportation is good it covers a somewhat scattered
territory, and includes an anrunt of bank capitalization which could to
advantage be subdivided.
()Obviously the difficulties thus enumerated cannot be met
without the rearrangement of districts upon a basis which will necessarily differ in some particulars from that already sketched.

It is,

therefore, endeavored in the following pages to show how the rearrangement of the districts may be made in such a way as to overcome the
main criticisms to which the plan already suggested is subject and to
provide a more convenient and manageable set of districts, assuming
that there is no objection to the use of the full number or something
approximating it in dividing the country.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

In any such subdivision or further rearrangement as thus

-70-

indicated two principles should be borne in mind, apart from the mere
recognition of transportation convenience and of other similar considerations.

These are as follows:
/ 1. The establishment of districts which will recognize and

adjust themselves to the probable future growth of the United States
in those sections.

This is so important a consideration as to prevail

against immediate arguments based upon temporary scarcity of bank capital in the districts to be laid off.
Recognition of distinct community or sectional interests
which call for the establishment of institutions in regions having a
Special type of industrial development or special types of commercial
paper calling for the recognition of them upon an independent basis.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

‘4

4

-71r

Division of Central West/
For the reasons already stated)
it is clear that the fundamental point of difficulty in the readjustment is found in the central
west.

There is no reason for altering the northwestern, or St. Paul-

Minneapolis district already mapped out, for that would undoubtedly be
left as it stands under almost any plan that might be suggested.

It

is but little above the minimum of capitalization, is compact from a
transportation standpoint, and harmonious industrially, and while it
lacks the convenience of arrangement which would come from a more even
distribution of its resources and from the existence of a centrally
located point for a headquarters bank, there is obviously no other arrangement of the territory which would materially improve upon what has
already been suggested.
As soon as the country to the southward of the St. PaulMinneapolis district is taken under consideration an entirely different
situation reveals itself.

The Chicago district already outlined, in-

cluding a western extension which carried the western boundary beyond
Denver is defective in the same way as its neighbor to the north in that
it is widely extended, lacking in geographical compactness and possessing a headquarters point far distant from many important portions of
the district.

In this case, however, the capitalization of the region

is such as to permit the limitation of the Chicago district to the original limits suggested in the map furnished on page 48 of this document.
On the other hand there exists within the territory several points
which are candidates for nomination as sites of reserve banks, which
have made some advance in business and banking development, which have
suitable transportation systems centering about them and which are otherwise eligible.

Among such places the most conspicuous are Denver,

Omaha and Kansas City.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

An examination of the transportation map at-

cPt0

/

r19

tached to this study shows that in many ways these plar-es possess the
proper qualities of eligibility.

It must be decided which ones have

these qualities in greatest measure and then how the lines should be
drawn to jivide the several districts from one another.
A first consideration in dealing with this matter, however,
is that of determining whether the central west and southwest should be
dividr'd in the main from west to east or from north to south.

Examin-

ation of the St. Paul-Minneapolis district shows th:_it the west to east
division was distinctly followed in the case of that district,while the
division of the eastern part of the country recor-nized the fundamental
fact that butiness in general and banking business in particular tends
northward and eastward so that the general trend of the districts was
from west to east or from southwest to northeast.

The Pacific Coast

being a separate section, largely self—dependent and geographically
xxxm independent was established upon a north and south basis, its exchanges running from north and south to a central point--San Francisco.
Which of these plans should be adopted in the central west and southwest,
and what would be the result of the selection of either?

The division

already tentatively proposed in part LI is based on the northeast and
southwest principle of division but as we have seen it was not satisfactory.

A cursory review of conditions of capital and transportation

suggests the possibility of creating two east and west districts, the
more southerly including Texas and the adjoining States or portions of
States necessary to fill out its natural territory and create a unified
district with possible headquarters at some city in Texas itself, the
more northerly including the States immddiatPly above the Texas district
thus created and comprising probably Nebraska, the whole or a portion
of Colorado, Kansas, Missouri, a large part of Arkansas and probably

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-73some portion of Oklahoma with possibly the upper corner of Texas itself,
while the eastern extension of the district would include doubtless
those portions of Illinois, Indiana, Kentucky and Tennessee formerly
grouped in the old St. Louis district as tentatively suggested in part
II.

Contrasting with this would be the possibility of two districts

practically all west of the Mississippi River and running northeast
and southwest, the one with headquarters at St. Louis, reaching the
Gulf
of Mexico and including Louisiana and New Orleans with the
eastern part
of Texas, the other a central western and southwestern distri
ct embracing
western Texas, Oklahoma, Kansas, Nebraska and portions of Colorado
and
New Mexico, the Pacific Coast boundary being left practically
undisturbed.

Considering the limitations of capitalization and others already

frequently surveyed, it would seem that not more than two such
districts
should be established, whether the east and west or north and
south
type of division be adopted.

The evidence available does not indicate

the desirability of establishing a special district centering
around
Denver whose capitalization would be necessarily limited, so
limited in
fact as pradtically to compel the sale of stock' to the public
or a subsscription by the United States Government.
While for many reasons it would be desirable to adopt the
division which would create in Texas and its adjacent territ
ory an
east and west district with headquarters at some Texas point
it is believed that the weight of evidence is somewhat against such
a division
and is in favor of the north and south or north-easter
ly or south-westerly
drawing of the lines.

The latter ?Ian permits the easy establishment

of a district which will place St. Louis and New Orleans
together and
is probably better from the standpoint of transportation.

It also

provides districts with a diversification of industries
and a variety
of seasonal demands,--considerations which were 'given
some weight by

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

:

. 0
/17,1
'

S

-74-

various witnesses although it is believed, they were over
-emphasized
by not a few persons.
Laying aside the idea of a southern east.and„west
district
consisting primarily of the bulk of the State of Texas
, we may, therefore, revert to the selection of a headquarters point
for the more westerly of the two districts into which it has practicall
y been decided to
divide the territory under consideration.

Attention may first be given

to the testimony in regard to this matter taken at
Kansas City and
Denver.
?he general argument presented at Kansas City was
expressed
by Mr. P. W. Goebel, President of the Kansas City
Clearing House Association. Mr. Goebel asked to have the whole of Nebra
ska including Omaha
attached to the Kansas City district, with Kansas and
Western Arkansas
as well as New Mexico and a small portion of
Missouri. He contended
that the facilities of Kansas City would amply
meet the requirements
of the whole region and other witnesses montmat
argued that the region
as far west as Denver could perfectly well be
cared for by a bank sit-

uated at Kansas City.

Very similar argument was presented at Lin-

coln, Nebraska, when P. L. Hall (minutes pp.
2019 ff.) asked for a
bank at Lincoln outlining somewhat the same type of
district already
suggested for Kansas City.

Mr Hall admitted that Lincoln was closer

to Kansas City in its business relations than it was
to St. Louis although he expressed the opinion that it was still
closer to Chicago
than to either.
At the same time L. E. Wettling (pp. 2052
ff) asked
for the annexation of a part of Wyoming to the
proposed central western district on the ground that it was tributary
to Lincoln. William
Burgess and H. W. Yates (pp. 2099 ff.) in behalf
of Omaha followed
almost exactly the same lines of argument
and outlined much the same

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,

-75-districts that had been urged by Kansas City and Lincoln inter
ests, although of course suggeting Omaha as the headquarters.
At Denver UW George Lerger (p. 2190) conceded that the
business of Montana trended eastward and not toward Denver while
he
further conceded that the territory surrounding Denver favored a
district with an eastward extension rather than with a north
and south area.
Gordon Jones, (p. 2272) at the same place took the view that
Denver territory was closer to Kansas City than to Omaha in busin
ess relations,
although he said that his second choice after Denver for
the site of
4 reserve bank to which Denver should belong was Chicago, Kansa
s City
standing next in order and Omaha last.

F. A. Roof (p. 2310) and other

witnesses bore out this testimony and apparently thought that
even in
the event of the establishment of a reserve bank at
Denver the western
Part of Colorado should probably be assigned to the Pacific Coast
district, a view taken by a number of witnesses at various places
.
After weighing the arguments presented at Kansas City, Lincoln, and Denver, as well as those offered in behalf of
Omaha, it is
the present opinion that with the number of distr
icts available and
ground
the conditions of capitalization imposed, no
sufficient grams exists for
the creation of a reserve district with headquarte
rs at Denver. Desirable as it would be to break up the central western territ
ory somewhat
more, the shortage of bank capitalization in Colorado and
the territory
immediately adjoining and the trend of business from
west to east in
those States which border upon Colorado to the north
and south indicates
that the establishment of such a district would
require a very sharp
reversal of prevailing custom and prevailing drift
of business over a
considerablw section of the country.

Still less argument exists for the

Placing of a headquarters bank at Denver, assuming such
bank to represent

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-76-

a territory including Nebraska and extending broadly to the southwest.
Kansas City having been selected as the most eligible point for the
headquarters around which is to be developed a northeasterly and southwesterly district in the central west it is possible to proceed to the
mapping out of this district in detail.
C
Kansas City District.
,

--.',

,. c

$

i,

The bank capitalization of Kansas City itself like that
of all of the other places considered as possible competitors in the
establishment of a headriquarters bank for the territory under consideration being limited, it is necessary to lay out the area of a region in
large blocks, studying first of all capitalization.

To begin with,

there can be no doubt for reasons stated when the Chicago district was
under consideration that the so-called "Western Extension"
trict sho-ild be moved en bloc into the new territory.

that diso/
This would

shift at once the State of Nebraska with a small strip of Western Iowa,
the southeastern corner of Wyoming and the eastern and northern portion of Colorado as well as the northern strip of Kansas to the proposed
district.

To these should be added for obvious reasons growing out

of the considerations already adduced, eastern and northern New Mexico
and Texas east of the Pecas River to a line later to be determined.
In the same way Kansas will necessarily be

a

central portion of the

proposed district and the same would be true of a considerable section of Oklahoma.

The question will then arise with reference to the

drawing of a line of division between St. Louis and Kansas City
territory.

In attempting to do this, a beginning may be made in Texas
and

consideration may be given to the trade affiliations of the
reserve
cities of that State, part cularly in the northern portion, as
well as
to their transportation possibilities.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I0
-77-

In the hearings at Austin, Tex., representatives of Dallas
and Fort Worth banks appeared for the purpose of presenting the claims
of Texas points and particularly of their own cities as sites of reserve banks, all agreeing that it would be well to establish a reserve
bank at some point in Texas;while l naturally i the representatives of
each city desired that such city should be selected as the location of
the bank if established.

At this point)
nothing will be said of the

respective claims of the different cities as thus presented but atten-

( -1

tion needs to be given to the data Ix

with respect to the trade

affiliations of the different places and sections.

There seemed to be

a general agreement that the northern points, Dallas and Fort Worth,
might with about equal facility be shifted to a district with headquarters at Kansas City or allowed to remain in one whose headquarters were
at St. Louis v arhus J. R. Babcock while asking that the headquarters of
the reserve district should be located at Dallasadmitted that much
business was done with St. Louis and Kansas City.

J. H.

Ardrey said

that the business of Oklahoma went predominantly to Kansas City while
he pointed out that Fort Worth and Dallas banks keep their accounts at
Kansas City or St. Louis according to convenience.

B. T. Paddock of

Fort Worth and R. D. Gage of the same place, favored a district including Texas for the most part, a part of Oklahoma and of Louisiana
j
with some of Arkansas as had been dnne by Mr. Babcock.

Representatives

of other Texas points while expressing a wish for the placing of a reserve bank at some point in Texas.seemed to be in general agreement
that should this not be done southeastern Texas should with a portion
of Louisiana be assigned to the same district, probably with headquarters at St. Louis.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A consideration of this evidence and an examination of

-78the transportation map later to be presented seems to indicate that
Fort Worth and Dallas might both he placed either in the Kansas City
district or.in the St. Louis district proposed.

It is probably a fair

division of the territory if the line dividing the two districts be
drawn midway between Fort Worth and Dallas, connecting the southeastern
corner of the Pacific Coast district with the point in question.

This

establishes the extreme southeastern boundary of the Kanras City district.
The next step to be taken should probably be the outlining
of the northeastern corner of the district.

In the testimony at Kansas

City it was pointed out by Mr. E. F. Swinney, President of the First
National Bank of that place (minutes p. 1855) that about 80 or 90 miles
of Mis7,ouri should undoubtedly be regarded as belonging to Kansas City,
it being his view that the "natural district" of St. Louis was to be
regarded as starting beyond that point.

This view was tentatively ad-

mitted in the St. Louis hearings although in outlining the ideal district for St. Louis bankers of that place included Kansas City; but
as
,suming that a line was to be drawn between the two it seemed to be
admitted that a certain reasonable district about Kansas City should
be allowed to that place (testimony of F. 0. Watts, p. 1580 ff. and
others).

Comparing the suggestions thus offered the conclusion may

be fairly drawn that Mr. Swinney's suggestion with reference to the
Northeastern corner may fairly be followed.

The corner may be located

to best advantage by selecting a point on the Missouri River between
Kansas City and St..Louis roughly 100 miles distant from the former
place, as marked on the map.

In the Kansas City testimony it was stat-

ed by J. A. Craigin of Joplin, Missouri, that that place desired to be
associated with Kansas City, such being the verdict of the Joplin


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

"
—79—

clearing house.

The boundary line then should run east of Joplin and

probably the fairest division of territory is obtained by simply connecting the southwest corner of Missouri with the point already fixed.
In the same testimony it was urged that practically the whole of Arkansas sholld be kept within the Kansas City district with the exception
of a "western strip" which was spoken of as debatable territory.
homa was regarded as belonging to Kansas City.

Okla-

There was no positive

evidence as to the precise treatment of the eastern corner of Oklahoma
but it is believed that practically all of the arguments presented will
be met if the southwestern corner of Missouri be connected by a straight
line with the point between Dallas and Fort Worth already indicated.
Description of District"'

i

c

To form the Kansas City district on the principles already
Indicated, therefore, begin at the intersection of the Pacific Coast
district with the Mexican frontier, proceed northeast to a point midway to a point between Fort Worth and Dallas, then somewhat more northerly to a straight line to the southwest corner of Missouri, then in
a
straight line to a point on the Missouri River 100 miles from Kansas
City in the direction of St. Louis.

Follow the Missouri River to its

intersection of the southern boundary of the Chicago district; follow
the southern and western boundaries of the Chicago district to intersection with the St. Paul-Minneapolis district, follow the southern
boundary of the latter westward to intersection with the Pacific
Coast
district and then follow the latter southward and eastward to
point
of departure.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-80Analysis of Testimony.

K.,

0,

c
't

The testimony germalUito the Kansas City district is found
in parts of the hearings at Chicago and St. Louis, in the hearings at
Denver, Austin, Tex., Lincoln, Neb.

and in Kansas City.

already been heavily drawn upon in

These have

ing the boundaries of the dis-

trict so that formal analysis at this point is not necessary.
i
t

Capitalizationf

.
i,

ctate or City:.

C

Cap1a1 and (Surplusl
-15,loo l000

'Nebraska4
,
Reserve Cities of Nebraska.,-

1/,

Le>4)

Iowa, one-sixth estimatecli' Colorado, three-fifths estimated,.---

14,25o,000
5,400,000
5,Boo t000

Denver,

7,5oo,000

Pueblo/

1,3oo,000

Kansas
?
'

16,000,000

Reserve Cities of Kansas/

2,400,000

Missouri, one-fifth estimatey.

1,9oo,000

Kansas City, Mo.,
New Mexico, two-fifths estimated,,
,
Texas, three-tenths estimated'
Fort Worth;

11,26o,000
1,275,000
15,600t000
4,95o,000

Wyoming, one-sixth estimated,/
Oklahoma,five-sixths estimated,)

5oo l000
12,884,000

Muskogee i

1,176,000

10klahoma City)

1,686,000
Total-

$118,981,000

o
8
-apitalization


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

of reserve BankOkt%

-07,138,86o


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-61Limp of Kansaa City District

Lusk
•
Douglas

•Chadron
Elk Pain
Norfolk.

°Alliance

.
Colombo: Fre
• Laramie
Cheyenne•
Collins.

North Platte
Julesburp.
Sterling•

Grand Island.
Kearney'

OMAHA
Lincoln.
.Beatricr

Fairbury.

les *Greeley
"Torton.
4
Springs 'DENVER

401.00.
,,t.
Leavenv

Concordia.
.Colby

KANSAS CFrii
L4,4'
,

.Colorado Springs
*Cripple Creek
.Florsnce
Fuebio•
Rockyford•
Lamar
•La Junta

37.

.
Ottawa
.Emporia

Scott.
Newton.
•Garden City
•Wichita

Pittsburg •

Arkansas Cit .

.Trinidad
.Raton

Enid.
Tulsa. irsir

.D.dhart
• Mora

Guthrie
.
Oklahoma
.;

•Las Vegas
Tucunicari•

Chickasha

•Antarill

•Altus

Muskogee•
Shawnee
Mc Alester.

•Lawton

ad*
Wichita Falls.
Gainesville.

•Lubbock

Ft.Worth•
Abilene.

lir
Brownwood. '
San Angelo*

4;.

-82St. Louis District/
The district adjoining the pro 'osed Kansas City district
on

*Je east will necessarily be that with St. Louis as its headquarters

but the shape of the district will be different from that which was assigned to the St. Louis territory in the division tentatively mapped
out on the former basis.

The problem now is that of dividing the ter-

ritory east of the Kansas City district and south of the Great Lakes,
Philadelphia and Chicago districts into two, inasmuch as it is clear
that but two districts can well be created in that region under the
conditions of capitalization already prescribed.

Probably the most

fundamental change that is necessitated in this rearrangement is the
extension of the St. Louis territory to the Gulf east of New Orleans
and the inclusion of all of Louisiana and the Mississippi River territ. 1 in the St. Louls district.

This, however, is unavoidable in view

of the capitalization conditions as well as considerations of transpor

tion and those which arise from the limitation upon the number

of districts to be created.

The western and northern boundaries of

the district as well as the extreme southwestern being already established in a tentative manner the problem at issue is simply that of
drawing a dividing line between the St.

Louis district and that to be

created in the southeastern States, and this in turn reduces itself to
a problem how far east of New Orleans (which as already seen, is necessarily included in the St. Louis district) the eastern boundary should
be drawn.

For reasons which will appear in the analysis of testimony

shortly to be presented, it is believed that this line should be established by following the extreme southeastern boundary of Louisiana
to its intersection with the northeastern boundary, then drawing a
line straight north or nearly so, parallel with the eastern boundary
of the State of Mississippi until such line intersects the southwestern

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

r'‘

-83boundary of the St. Louis district as formerly established in connection
with the original grouping of districts,

This point will be found to

lie slightly south of the northern border of Tennessee a little below
Union City.

From that point the original boundary of the St. Louis

district may be followed.
Description of District,
/
To establish the St. Louis district on the principles already suggested begin at the Gulf of Mexico and follow the Mexican
frontier to the southern corner of the Kansas City district which is
also the southeastern corner of the Pacific Coast district.

From that
lki
point follow the southeastern boundary of the Kansas City district 4)0
the intersection of the southern boundary of the Chicago district.

Follow the southern boundary of the Chicago district east and northeast
to its intersection with the Great Lakes district.

Follow the boundary

of the Great Lakes district to its southwestern corner then proceed
iwz,
southwest crossing the Tennessee borderl in a straight line from the
point
marmax of departure and continuing until the point of intersection with
a line drawn parallel with the eastern boundary of Mississippi
northward from the southeastern corner of Louisiana is reached.

From this

point of intersection follow the aforesaid line southward to the
Gulf
of Mexico.
Analysis of Testimony./
In analyzing the testimony relating to this district the
most interesting point to be considered is found in connect
ion with the
extension of the southern frontier along the Gulf Coast so
as to include New Orleans.

At the New Orleans hearings strong demand was made

for a district which should have New Orleans as its
headquarters and
which should include Texas, Mississippi, Alabama, Florida
, Georgia


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-84-

and Tennessee west of the Tennessee River.

Sol. Wexler (minutes p.

3505 ff.) presented this plea and said it would be wrong to attach
the
this territory to St. Lois while he argued that k dislike manifested
in Texas with respect to the idea of being attached to

New Orleans

was entirely due to the belief that the Texans might thus be building
/
(tdvoswo'
up a business coTtpetitor for themselves. He showed t hat of 500 banks
in Texas only 52 had reserves in New Orleans while 300 had such reserves
with nne northern city and 143 with another.

X This was distinctly

against his contention for New Orleans as a headquarters for Texas.

L.

E. Bentley, outlined the branches of the Federal service already existing at New Orleans,

W. B. Thompson, described and laid stress upon

the cotton export situation, E. J. Glenny, presented the position of
New Orleans as a foreign exchange center, M. J. Sanders, told of the
steamship lines and foreign trade centering about the city, C. H. Ellis
claimed that a reserve bank in New Orleans was desirable in order to
handle the tropical fruit industry well, and others dealt with other
branches of trade but there was nothing in these arguments that could
not be met by the establishment of a branch at New Orleans.

Little

weight could be attached to the arguments of E. B. Stern, and others,
who compared New Orleans volume of business with the volume of business
of Atlanta, Dallas, Houston and others.

With reference to actual trade

some testimony was offered, L. C. Simon, and others, analyzing the
trade with northern states and the amount done with Alabama, Georgia,
East Texas, etc., and admitting that in East Texas the trade was largel*
confined to the country nearest Louisiana while in Alabama, Georgia, etc
much of the trade went northward.
With reference to boundary lines some evidence was afforded
by J. L. Taylor of Mobile, who stated that Mobile endorsed New
Orleans


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-85•{7.AA 1.°

and desired to be placed in the same district with it, while E. Y. Princess of Greenwood, Miss.,(western part of the State) and W. Broach of
Meridian, Miss., (eastern part of the State) also expressed themselves
favorably to the claims of New Orleans.

If these views were accepted

itiwould be necessary to throw the whole of Mississippi into the St.
Louin district with possibly a small additional section of Alabama around
The present opinion is that the line as drawn is a fairer divdrift
ision. The general tift of the testimony subsequently produced by
r\
Birmingham and Atlanta representatives strengthens this view. It
Mobile.

would, however, make relatively little difference to the capitalization
of the district ir the eastern boundary should be made to follow the
eastern boundary of Mississippi to a point opposite the western boundary of Florida and then permitted to follow the latter to the Gulf.
This would slightly enlarge the St. Louis district above the limits already suggested.

The location of this southeastern boundary is some-

what debatable as between the two ingstia methods of placing it already indicated and the precise points through which it is to be drawn
might fairly be left to the banks of the region to determine.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4-1 1"/

-86-vOl
P3"

Capitalization

r,
)
'State or City:

Ca ital and

11;iisr:7ouri, three-fifths estimated,,
St. Louis;

c_42

rplus

5,7oo l000

-

29,2oo l000

Illinois, one-third estimated,';.
Indiana, one-fourth estimated/

J.

17,000,000

:
8,000,000

Kentucky, one-eighth estimated,'"

2,2oo,000

Tennessee, one-sixth estimated,

3,125,000

Arkansas

7,525,000

Mississippi, two-thirds estimated,/,

3,400,000

Louisiana,,

5,375,000

New Orleans,/

8,23o,000

Texas, six-tenths estimated,

31,2oo l000

Galvestopii

75o ,000

Houston,/

7,o5o l000

San Antonio/

3,67o t000

Waco,'

2,150,000

Oklahoma, one-sixth estimatedi-

2,575,000

Total

r 1_37,15o,000

uailitalization of reserve bank


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,229,000

1

-87Map of St. Louis District


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Paducah

Little Rock
IIot Spring.
Pine Blur

Brenham•
Beaumont
Hoti 40 Port At tin,.
.
.

i/

II

-88Southeastern Districts
It is proposed to consider the remainder of the States in
the southeastern corner of the mainland territory of the United States
as an additional district, they being included between the Philadelphia
and Great Lakes district on the north and the St. Louis district on the
west.

The chief mums question remaining in connection with the forma-

tion of this district is one of capitalization.
is sufficient these States may be properl

If the capitalization

combined into a single dis-

trict with a headquarters later to be determined.

This question may

now be considered.
, `
Description of Proposed District/ (

5,

From the intersection of the St. Louis district with the
Gulf of Yexico follow the Gulf Coast and the Atlantic Coast to the
southern line of Virginia, then follow the southern line of Virginia
westward to the southwestern corner of the Philadelphia district, follow the southwestern boundary of that district to its intersection with
the Great Lakes district and follow the southern boundary of the latter
to its intersection with the St. Louis district.

From that point fol-

low the southwestern boundary of the St. Louis district to the Gulf
of Mexico.
.1.,

Capitalization./

state or City:
North Carolina/ Tennnessee, five-sixths estimated,/
South Carblina,
Georgia,'
Savannah,
/
Florida,
Alabama,
Mississippi, one-third estimated,.
_:›Total
Pttalization of reserve bankir6c
(
f,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ver4
s

fr-

Cap tal and Surplus
f11,3oo p000
L/15,5oop000
805c0000
221 9oop000
;,600,000
10,600 l000
16,3oo,000
1,7oo,000
$88,400,000

5,000,000
1
4

—cc—
(__,

Map of Southeaste= D16tr1ct

rt

" ". •Ak •
4

•-• .4.1111

•Lie•••"4. -4•1.1igatkiftplikoiradooloorm.....

Middlesboro

si“*.01Mbr

Johnson City.

*
Clarksville

.Jackson

Oft

'Nashville
•klurfref,boro
•Columbia

Knoxville

Goldsb

J)

*Fayetteville
Newbern

bharlotte
)
Spartimborg-.

Chattanooga.
•Florence

cher,w

•Anderson

Pt

.Raleigh

Winston-Salem

tiainesville•
Columbia

Home
13irniingliam

ITLANTA

;Tuscaloosa

Orangeburg

Anen•-•t,.

Charleston
Selma.

Montgomery
Savannah.

Meriditin
.Albany

*
Waycross

Dothan•
i

it

•Tallahassee

f

Lake City'

'
Sanford

N
Tampa

4,y


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

'1 •

- -•

•••-•

_

:1 nI

Pi

-90-

g,110

General Map,/
The whole territory of the United States has now been rearranged so as to create in all 10 districts, the change from the first
method of districting consisting simply in the readjustment of the
central western and southwestern territory, a process which necessitated the further readjustment of the boundary line between this region
and the southeastern states.

In the subsequent discussion it will be

suggested that two of the districts already mapped out be subdivided,
these being the Pacific Coast district already established which will
be separated into a north Pacific and south Pacific section, and the
Great Lakes district which will be subdivided into an eastern Great
Lakes and western Great Lakes section.

In order however that the

proposed division of the country as now arranged upon a basis of 10
districts with a further,pubdivision into 12 may be easily understood,
a general map designed to exhibit the relationship of the several districts to one another as well as the principal routes of transportat1

ion is herewith presented (2..s—rftre-941.
;

-•

•

.•

_.. '
52'' C't

:1
L
0:1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CITIES AND TOWNS OF UNITED STATES
1910 CENSUS

0

The following list names in alphabetical order approximatelY all cities in the United States having one thousand or more inhabitants. The numerals at extreme right of column are the latest available census figures
or recent official estimates of population. Capitals of States and Territories are in capital letters.
ALABAMA


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CONN. Cont'd.
Simsbury
Sound Beach....
.
s 0G asttoa ..y.
S0 thliogon bur ,

IDAHO Coned.

ILLINOIS Cont'd.

INDIANA Coned.

KANSAS Cont'd.

3,214
Dodge City
4,205
Onarga
Rising Sun
1,513
1,273
1,427
Downs
1,000
1,038
1,505
92:513805
River Park.
Oregon
3,129
Eldorado
3,364
Rochester.
Ottawa
Payette........ 1,948
1,404
1,1C?1
1
Ellis
9,110
Rockport
2,736
Pocatello
1,144
Palatine
2,041
So. Manchester_ 9,000
Ellsworth
1,500
Rockville
1,943
Palestine
Potlatch .
1,000
So. Norwalk.... 8 9 0
1:20
6
8
Empire City.
1,166
2,110
Rosedale.
Pans
6 359
1,095
Preston....
sS000utthhpo‘Nrita.dsor .. 21:00875s
9,058
Emporia
4,925
Rushville
1,893
Paris
7,664
Rexburg.
1,300
Eric.
Paul
1,400
2,009
1,400
St.
Rossfork
Park Ridge
5 1003
30
Stafford Springs 24:05: i. Saint Anthony.
2,333
Eureka
2,283
1,399
Salem
1.238
Pawnee
Stonington......
1,168
Florence
1,669
1,434
2:0 12
1 922
Paxton
Scot tsburg
Salmon
Stamford
Fort Leaven1,188
/,993
Pecatonica
Seel yville
Sandpoint
2,500
Stony Creek..... 1,200
worth
Seymour.
6,305
1,155
9,897
Pekin
Shoshone
Stratford
3,500
Fort Riley
66,950
Shelburn.
2,055
1,300
Peoria
Silver City...
10,463
Suffield
Fort Scott
9,500
Shelbyville.
21;928047
2,800
Peotone
Twin Falls. ..... 3,258
Frankfort
... 1,426
Taftville
1,i 68
1,033
4,500
Sherid.an
3,000
Percy
Wallace •
3,040
Terryville
Fredonia.
1,519
2,400
Shirley
1,369
Peru
Wardner.
3,396
Thomaston .
Frontenac
1,015
2,587
Petersburg
Shoals
Vs'eiser
2,60C
Thompsonville... 6,02
6,096
Galena
53,684
2,722
3
South Bend.
Pinckneyville.
Garden City.
Tolland.
3,171
1,176
2,095
1 400
Pittsfield
South Whitley.
LLLINOIS
2,334
Garnett
Torrington
2,150
1,019
Spencer
Plainfield
15,483
1,281
Gas
Union City.
4,115
1,627
Sullivan
Plano
2,464
3,200 'Abingdon
2,446
Girard.
Unionville
1,387
1,829
Summitville
Polo
1,281
2,200
ied
bicon
1,993
Goodland
1,379
6,090
Syracuse.
W allingford .
2,144
Pontiac.
4,622
Greatbend
3,369
Warehouse Point 1,250
3,194
Tell C -•
Portland.
1,328
ltamont
Greensburg. .... 1,199
58,157
Waterbury
4,131
Terre Haute
17,528
Princeton
73 691
8 140
Alton
,
1,004
Halstead.
1,508
Prophetstown.
1,083
Thorn town
Waterford
1,749
Amboy
2,550
1,039
Hanover
4,075
36,587
Tipton
Quincy
Watertown.
2,809
3,400
Anna
1,638
Harper
1,000
1,384
Rantoul
Tolleston
2,100
Waterville
Arcola
3,000
1,961
Hays
3,209
1,240
Union City
Redbud
1,943
Arlington Hgts.
West Hartford.
3,000
3,273
Herington. ....
1,080
1,054
Ridgway
Upland
1,080
Arthur
West Haven.
8,543
2,924
Hiawatha
1 41 6
6,987
Valparaiso
River Forest.... 2:951
1,096
Ashland
Westport ..
3,200
1,134
Hillsboro
1,702
1,189
1,918
Riverside
Van Buren
.
Assumption. .
2,750
Wethersfield... •
Hoisington...... 1,973
1,357
Riverton
1,757
Veedershurg.
r ,230
Willimantic. ' i2,600
1,340
2,842
1,311
Roanoke.
Holton
A7aoria
A It ens
1.256
'.
Veva v
W'indsor
1,367
3,000
Robinson
3,863
Atlanta
Horton
14,895
3,500
Vincennes.
.
Windsor Locks•
1,814
Rochelle
Howard
1,163
8,687
Wabash
. ogo rta
Aubus n
k
71:07g
Winsteci
7332
1,101
2,548
1,146
Humboldt
Rockdale
1,000
Wadesville.
Woodbury
16,364
29,807
2,657
Hutchinson
Rockfalls
1,003
Walkerton
Aurora
Yalesville...... 1,500
.
Independence... 1,,
0 021
?„
45,401
2,668
Rockford
1,189
Averyville
Warren
1,444
Rock Island... . 24,335
Iola
Barrington.
4,430
Warsaw
DELAWARE
2,171
Junction City... 5,598
1,647
Roodhouse
7,854
Barry
Washington
1,422
Kansas City.... 82,331
1,200
Rosskille
1,167
Bartonville
Waterloo
Delaware City. . 1,132
2,570
Kingman
21:046225
4,436
Rusteville
3,867
Batavia.
West Lafayette
3,720
DOVER.
1,547
6,107
Kinsley
St. Anne.
Beardstown
West Terre Haute 3,083
11:650009
Georgetown
1,520
Kiowa
21,122
4,046
St. Charles.
Belleville
6,587
Whiting .
Harrington.
2,080
7,253
Laharpe
St. Elmo
,227
Belvidere
Williamsport.... 1,243
Henry Clay Fac2,911
1,530
St. Francisville.
1,391
Larned
Bement
1,607
Winamac
1,000
12,374
Lawrence
1,912
2,669
Salem
Benld
4,266
Winchester.
2,166
Lat6 el:
ur
19,363
Leavenworth
1,563
2,675
Benton
Sandoval
1,000
Winona Lake
2,158
Lewes
1,716
Liberal
5,841
Sandwich
2,557
1,732
Berwyn
Worthington....
1,399
Middletown
1,508
3,691
Lincoln
Bloomington.... 25,768
Savanna
1,100
Yorktown.
21:063083
NI ilford
1,939
1,370
8,043
ird
Scatonville
Lindsborg.
ru d esl
Blaell y
Milton
2,071
1,942
7,100
Seneca
Lyons
IOWA
1,913
Newark
3,546
1,292
1,958
McPherson
Sesser
aidwood.
Breese
Newcastle....... 3,351
5,722
2,128
Manhattan
Shawneetown
1,863
1,244
Ackley
,,108
Seaford
1,15)
31:050909
2,703
Sheffield
Mankato
Bridgeport
1,289
Adel
1,843
Smyrna.
1,841
2,186
Brookfield
Shelbyville
Marion
1,014
Afton
87,411
Wilmington
2,260
1,569
1,143
Sheldon
Marysville
Brookl yn..
1,130
Akron
1,229
11:016183
1,443
Silvis.
Medicine Lodge
Brookport
4,969
Albia.
DISTRICT
1,770
Bunker Hill
1,046
Sorento
Mineral
2,908
Algona.
OF COLUMBIA
2,619
South Holland.
1,065
Bushnell
Minneapolis.
1,046
Alton..
331,069
14,548
South Wilmington 2,403
Washington....
Mulvane
Cairo.
4,223
11(1
„
Ames.
1,272
3,081
National Military
Sparta
Cambridge
2,983
Anamosa
2,500
SPRINGFIELD. 57:075
1 638
FLORIDA
1:443
Home
Camp Point..... 10 158
1,118
Anita...
2,872
Spring Valley.
Neodesha
Canton
4,560
A tlan tic.
Apalaca icola.... 3,065
Arradih
7,862
Staunton
5,411
5,048
Carbondale
1,928
Newton
Audubon
. 1,736
1,195
Nickerson
1,031
Steger
2,161
Cardiff
1,520
Avoca. .
2,662
Bartow
7,467
1,787
3,616
Sterling
Norton
Carlinville
1,883
Bedford
Bradentown..... 1,886
1,465
1,096
1,982
Stockton.
Oakland..
Carlyle
3,121
Belle Plaine
Cleiare,aiw ... . 1,099
C pl,Ay
h
a
.
1,118
2,833
Stonington
Oberlin
1.776
1,157
Carmi
Bellevue
3,272
142:622531
Streator
1,128
1,224
Olathe
Carpentersville.
Belmond
11,016761
Dade City
2,432
1,558
Sullivan
Osage City
2,028
Carriers Mills.
Bloomfield
3,082
Daytona
4,046
1,413
°sass atomie
2,323
Sumner.
10,347
Carrollton
Boone
De La niak Sprs. 2,017
Fuod
1,566
3,926
Osborne
2,971
Sycamore
1,303
Carterville
Britt
2,812
2,713
5,446
Oswego
Taylorville.....
2,373
1,233
Brooklyn.
Carthage
1,227
Dunnellon
1,012
2,157
24,324
Ottawa
Thayer
7
Burlington
3„2?
Casey
3,482
Fernandina.
1,030
Paola
Thornton
3,000
1,179
Central City
Buxton.
1,165
Fort Meade
12,463
2,407
Parsons
9,680
3,546
Toluca
Carroll
Centrali 1
2:363
1 43
Fort Myers
1,416
1,208
Peabod y
12,421
Toulon
1,268
Champaign
Cascade.
Fort Pierce.
1,302
1,040
Phillipsburg
5,012
5,884
Tower Hill
Charleston
Cedar Falls.
6 183
Gainesville.
14,755
1,694
Pittsburg
1,112
Trenton
Cedar Rapids... 32,811
Chatsworth
1,319
Greencove Sprs.
1,090
1,447
Plainville
6,936
1,314
Troy
Centerville.. .
Chenoa
High Springs.... 1,468
82:424535
Pleasanton
1,048
3,794
Tuscola
Chariton
Cherry
57,699
Jacksonville
2,918
Pratt
2 747
Upper Alton.
Charles City.... 5,392
Chester.
1,730
Rosedale
3,960
2,185 283
4,884
Urbana
Cherokee
19,945
itsy?erV est.
e \
1,692
1,500
Russell
1 52 1
1,355
Uaadaiia.
v tica.
Cincinnati.
Chicago Hgts.... 14:855
C i cag
2,157
Kissimmee
1,768
2,974
Sabetha
3,832
Chillicothe
Clarinda
5,032
Lake City.
3,718
St. John
1,193
2,065
Chrisman
Venice
Clarion
3,719
Lakeland
1,7 9;
3
1,118
1,825
2,014
St. Marys
Christopher
Vermont.
Clear Lake
3,450
Liveoak
9,688
1,124
Salina
14,557
25,577
Vienna
Cicero
Clinton
Madison
1,560
2,233
1,828
Scammon
2,524
5,165
Villa Grove
Clinton
Colfax
1,915
Marianna
1,211
4,000
1,185
Sedan
1,000
Columbus Jc.
Virden
oale
Clyd city
5,471
Miami.
1,806
11:350311
2,667
1,084
Seneca
Virginia
Coon Rapids.
1,200
Millville
Smith Center.... 1,292
1,445
Corning
Warren
Colchester
1,702
1,829
Monticello
1,927
2 254
Stafford
7,478
Warsaw
Corydon
Collins aille.
1,669
1,418
Mulberry
2,133
Sterling
2,076
Washington..... 1,530
Council Bluffs... 29,292
Columbia
New Augustine.
11:284
Stockton
2,658
1 „326
11 7
1,005
Waterloo
Cresco.
Crotty.
New Smyrna....
2, 96
07 1
4
6,924
1,242
Watseka
Syracuse.
Creston.
Crystallake
4,370
Ocala.
1,018
161,053689
Tonganoxie
2,019
43,028
Waukegan
Davenport..
Cuba
3,894
Orlando
43,684
TOPEKA
3,592
1,288
Waverly
Decorah
Dallas City
3,779
Palatka.
1,129
1,442
3,133
Valley Falls
27,871
Wenona
Denison
Danville
Pensacola. ,..... 22,982
1,500
2,378
Victoria
31,140
West Chicago.
DES MOINES. 86,368
Decatur
1,012
1,714
1,380
Wamego
1,634
8,102
West Dundee.
De Witt
De Kalb...
1 era
"la .City
2,481
Washington..... 1,547
38,494
1,175
West Frankfort.. 2,111
Dubuque
Delavan
Port Tampa City 1,343
2,289
Hammond. 4,948
Weir
1,000
1,339
West
Douds Leando.
Depue
QonaayGorda.... 1,012
Ptii tr
7,034
2,607
Wellington
1,155
Westville
2,348
Dunlap
Des Plaines
3,204
2,000
1,593
1,511
West Mineral.
W,Ateahetrosafield.
7:216
15 9
Dyersville
Divernon
Saint Augustine. 5,494
Whitecloud ..... 51:1 5
2 41
3 423
3,387
Eaglegrove
Dixon
Saint Petersburg. 4,127
2,854
Wichita
1,085
Whitehall
Eddyville
1,869
Dolton Station.
Sanford.
3,570
6,700
9
Winfield
4 083
1: 42
2,024
Willisville
1,184
Eldon
Dorrisville
SouthJacksonville 1,147
Yates Center.... 2,024
1,995
2,601
Wilmette
Eldora
Downers Grove.
1,135
Starke
1,450
1,181
Wilmington
4,100
Elkader
Dundee.
TALLAHASSEE 5,018
KENTUCKY
2,325
Winchester
Emmetsburg.
5,454
Duquoin.
Tampa
37.782
31,613689
3,404
2,156
Winnetka
Estherville
Dwight
Tarpon Springs.. 2,212
8,688
42:313701
4,970
Ashland
1,059
Fairfield.
Witt
Earlville
Warrington
2,200
1,787
Augusta
1,165
11:405
253
Farmington
Womi soock
wcooc t
le
East Dubuque.
1,099
Wauchula.
Barbourville.... 1,633
086
502
1:
1
1.112
Fayette
East Dundee.
ARIZONA
West Palm Beach 1,743
2,126
Bardstown
1,691
2,665
Wyoming
Forest City
East Moline
West Tampa ... 8,258
1,087
4,789
Bardwell
15,543
1,493
Zion Cit y
Fort Dodge
East Peoria
9,019
Bisbee
White Springs .. 1,177
1,360
Beattyville
58,547
8,900
Fort Madison.
East St. Louis.
Casa Blanca.... 1,200
INDIANA
6,683
Bellevue
1,028
5,014
Garner
Edwardsville.
4,874
Clifton
GEORGIA
1,510
Berea
4,052
3,898
Glenwood
Effingham
1,289
klbany
1,000
Congiass.
9,173
Bowling Green
1,012
3,366
Grand junction.
1,213
Eldorado
Abbeville
1,201
Albion
6,437
Douglas.
1.117
Burnside
1,150
Alexandria
25,976
Greene
Elgin
Acworth
1,043
1,200
Dunean
1,005
Cadiz
1,379
2,360
Greenfield
Elmhurst
22, 96
5 076
4
1,092
Adel
Anderson
1,633
Flagstaff.
Campbellsville.. 1,206
5,036
1,390
Grinnell
321,:063831805
Elmwood
8,190
Albany
Angola
7,083
Globe
1,293
Carlisle
1,354
1: 70
1 480
1
Grundy Center
8,063
El Paso
Americus
Argos
2,393
Jerome
1,936
Carrollton
Guthrie Center.. 1,337
1:308
1 200
Aragon
Attica
Kingman
1,
000
3,520
Catlettsburg
1,525
Guttenberg.
1,873
3,919
EEquruaeleality
Arlington
Auburn.
2:692
1 500
Lowell
Central City.... 2,545
1,817
24,978
Hamburg
482,:471511061
2,214
Evanston
Ashburn
Aurora
Mesa.
1,098
2,617
Clay
22:450795
Hampton
Fairbury
14,913
Batesville
Athens
2,500
Metcalf.
1,497
2,570
Clinton
Harlan
154,839
Fairfield
ATLANTA
BBeredfooerd
:
3 014
5 510
Morenci
1,403
Cloverport
1,106
1,603
Hartley
41,040
Farmer City.
1,316
Augusta
Nogales
1,022
Columbia
2,107
2,421
Hawarden
4,217
l rm
2,794
Faoraington
Bicknell.
Bainbridge.....
11,134
PHOENIX
2,589
Corbin
1,200
2,704
3,068
Hiteman.
2,069
Barnesville
13loomfield
1,500
Pirtleville
53,270
Covington
6,594
1,400
1,235
Hocking
Forest Park
8,838
Bloomington.
Blackshear
5,092
Prescott
3,603
Cynthiana
1,809
COLORAD03,013
Humboldt
1,838
Fort Sheridan... 1,800
431,:991863347
Blake!y
Bluffton
1,250
St. Johns
5,420
Danville.
1,006
1,130
Freeburg.
Humeston
Boston
Boonville
5,000
San Carlos
1,350
Springs.
Alamosa
Dawson
171,356977
1,874
1,040
Freeport
Idagrove.
Broxton
Bourbon
1,473
Tempe
6,979
Aspen
Da yton
4 035
1: 0
80
Independence..
. 3,517
French Village
9,340
. 10,182
,
B oena isk..
Brazil
Bruasw icta
1,582
Tombstone
1,126
Boulder
Drakesboro
2,174
3,283
1,016
Fulton.
Indianola
21:000687
Bremen
13,193
Tucson
911:085343491
3,931
Buenavista
Earlington
10,091
Galena
Iowa City.
Brook
Buford
1,267
Williams.
3,162
1,442
Canon City
Eddyville
22,089
2,797
1,505
Galesburg
2,169
Iowa Falls
Brookville
Cairo..
2.381
Winslow
1,970
Central City.... 1,782
Elizabethtown
2,498
2,477
1,652
Jefferson.
Galva
1,492
Brownstown....
..
Calhoun
2,914
Yuma
City... 4,333
1,228
Colorado
3,199
14,008
Elkton
1,827
Keokuk
.
Geneseo
1,818
Butler
Camilla
1,274
Colorado Springs 29,078
Eminence
2,451
1,009
2,002
Keosauqua.
Geneva
Cambridge City. 2,237
Canton
ARKANSAS
1,180
Cripple Creek... 6,206
Falmouth
1,257
3,190
Knoxville
Genoa
Cannelton
Carrollton. ..... 3,297
2,388
Flemingsburg.... 1,219
Delta
2,307
2,043
Georgetown
1 139
Lake City
2,01°
..
Centerville
.. 4,067
Cartersville
11,138
Argenta
213,381
10,465
DENVER
FRANKFORT
2,086
1,214
Lake Mills.
Gibson City.
Chesterton
Cedartown...... 3,551
2,745
Arkadelphia.....
4,686
3,063
Durango.
2,241
Franklin.
1,541
008
Gillespie
21,4704°3
Lamoni.
1:000
Chattahoochee..
Clarksville
Arkansas City... 1,485
2,575
Eaton
1,305
Fulton
1,542
Lansing
Gilman
1,213
Clay City...
Claxton
1,247
Ashdown.....
4,533
Englewood
1,891
Georgetown
1,233
1.638
6,229
Laporte City.
Girard.
Clinton
Cochran....
1,258
Atkins
2,316
221,971851327
11:822909
Florence
Glasgow
4,157
3,448
Lemars.
Glen Carbon.
, 73
:1
Columbia City.
olle aepark.... 21 554
uig b as .
1,520
Augusta
1,604
28:250100
Greenville
1,274
Fort Collins
Lenox
Glencoe
Columbus........ 8,813
3,399
Batesville
1,096
Guthrie.
1,991
Fort Logan
Leon
Glenell yn
Connersville..... 7,738
1 918
Commerce...... 2:239
1,708
Benton
Harrodsburg.... 3,147
1,453
1,078638
Fort Morgan.... 2,800
Logan
Golconda
Ccoorn3vdeorseo
Conyers
3,600
Bentonville
1,002
Hawesville
Glenwood Springs 2,019
1,116
1,710634
Lyons, Pop. inc
5,883
Grafton
Cordele.
1,078
Blackrock
11,452
2,477
Henderson.
Golden..
in Clinton.
1,114
Granite City.
Covington
9,9°3
,
3,849
2,736
Bl ythey ille
Hickman
1,259
Golchield
McGregor
9 079
Granville
2,967
C rnciia
C ington
(Iv
1,39
' Crawfordsville... 2,361
1,631
Booneville
1,977
Highland Park.
1,191
Grand Junction..
Madrid
140
1:961
Crothersville.... 1,038
Cuthbert
rp yn i ee
.. 3,210
Grae irfillid
1,740
9,419
Brinkley
Hookincville.
1,154
8721:',711!51924
Greeley.
Malvern
2,526
Csaann Point..
Dailee
3,995
1,346
Camden
2,758
Jackson
Manchester
1,224
1,640
- -.
Dalton
Uri
Greenup
Danville
Gunnison
2,037
Clarendon
1,152
Lagrange
1,434
Idaho Springs...
3,178
Manning
4,471
1,391
Greenville
Darieno
p wso
1,456
Clarksville
1,507
11,82962
Lancaster
Lafayette
1,236
1,262
Manson
2,161
3,827
Griggsville
Decph i r
D el atu
1,229
Coalhill
3,000
4,154
Latonia
1,100
La Junta
11:030008
Mapleton
Grossdale
2,466
Decatur
Diamond
2,794
Conway
1,723
Lawrenceburg..
22:090787
3,570
Lamar
Maquoketa
Gross Point
3,550
Douglas
Dugger..
1,439
Corning
3,077
Lebanon. .
1,786
1,627
Las Animas
Marengo
Hamilton
1: 95
7
Douglasville..... 5 462
Dunkirk
21:008381
Cottonplant
1,053
Leitchfield
Leadville
4,400
Marion
Harrisburg
232 1
9 478
1 0020
1310968
Dublin
East Chicago..
Crossett
35,099
Lexington
35,030°89
Marshalltown.. 13,374
Littleton
Harvard
2,355
Eaton
Eastman..
1,757
Dardenelle
1,220
Livermore
471,325075836
11,230
7,227
Longmont
2,040
Mason City
Harvey
3,682
East Point
2,018
1,638
De Queen.
London
1,706
Louisville
3,525
Missouri Valley.. 3,187
1191:022882
)
2,036
ava ,
Hear na
Edknar trg
E l ih bu.
Eatonton
1,662
Dermott
1,356
1,172
31:635571
Louisa
Loveland
1,687
Montezuma
2,600
Elwood
Edgewood
1,061
Desarc
223,928
2,043
Louisville
62:686751
Manituu
69,647
Monticello.
Herrin.
6,483
Evansville
Elberton.
1,200
4,163
Eagle Mills
1,233
Ludlow
Montevista
2,544
21;510105
Moulton...
Highland
Ewing
Fairburn.
1,542
Earl
Madisonville.... 4,966
1,646
4,209
3,254
Montrose
Mountayr
Highland Park
Fairmount
Fitzgerald
4,202
Eldorado
1,627
3,874
Marion
1,644
1,219
Ouray
Mt. Pleasant.
Highwood
2 3055
51, 998
7
2
Farmersburg
Forsyth
1,407
5,916
England
Mayfield
1,532
21:000007
3,424
Paonia
Mt. Vernon
Hillsboro
1,320
Flora.
Fort Gaines
6,141
Eureka Springs.. 3,228
Maysville
2,451
16,178
Primer()
Muscatine
Hinsdale.
1,1802
2 35866
1
2,697
Fort Branch
Fort Valley
Fayetteville..... 4,471
1,200
1,086
2,663
Mercer
44,395
Pueblo
Mystic.
Homer
5,925
Fortville
Gainesville
2,794
Fordyce
,305
Middlesboro
1,107
1,413
4,698
Rockvale
1 1 73
Nashua.
Hoopeston.
1,132
Fort Wayne..... 63,934
Grantville
1,000
Foreman
1,338
Monticello
43:423205
2,138
Rockyford
Jacksonville.... 15,326
Nevada.
6
8 494
1: 31
27:412708
Fowler
Greensboro
Forrest City.... 2,484
1,105
Morehead
4,113
Sseagolidoado
New Hampton.. 2,275
Jerseyville
Frankfort
Griffin.
23,975
2,725
Fort Smith.
Morganfield
4,502
New London.... 1,144
Johnston City... 3,248
1,093
Franklin
Hampton
1,124
Greenwood
1,266
Mortons Gap...
34,670
21,6°15°3
Silverton
New Sharon..... 1,122
Joliet
1,882
Frenchlick
Harrisonville
1,284
Gurdon.
Mt. Sterling.... 3,932
1,169
4,616
1,321
Newton...
South Canon
'°2
Jonesboro
14 849
6 103
1:
2,007
Garrctt
Hartwell
1,787
Hamburg
Washington. 1,400
Mt.
1,264
13,986
11:020207
Northwood.
Starkville
Kankakee
3,420
Hawkinsville
Gar y
1,602
Harrison
2,089
Murray
1,105
Steamboat Sprs.
3,224
Oakland
Keithsburg
Gas City
Hazlehurst
1,780
Hartford
30,309
Newport.
1,283
91,350175
3,044
1,140
Odebolt
Sterling
Kewanee
1,280
1 31
Geneva
Hogansville
1,500
Heber Springs...
Nicholasville.... 2,935
6,028
1,756
'Telluride
1,105
Oelwein
Knoxville.
Goodland
Jackson
8,772
Helena
2,073
Oakdale
1,298
11,489185
10,204
Trinidad
38:759014
Ogden..
11,820672
Lacon
Ladd
Goshen
Jefferson.
3,639
1,132
Hope.
Olive Hill
2,026
3,162
51:298102
Victor
Onawa
Greencastle
1,415
Jesup
16,011
Hot Springs..... 14,434
Owensboro
2,423
Walsenburg
41,:460146886
Orange City..... 1,374
Lagrange
Greenfield
1,226
Kirkwood
Huntington..... 1,700
1,024
Owenton.
2,445
1,000
a,420
Osage.
Wray
Lagrange Park.. 1,131
Greensburg
1,590
Lafa yet te
1,240
Huttig
22,760
Paducah..
1,349
2,416
Osceola
Laharpe
Greentown
5,587
Lagrange
CONNECTICUT
5,859
iclnesboro....... 7,123
a
Paris..
3,349
9,466
Oskaloosa.
Greenwood.
Lake Forest
,
Lavonia
1,060
„
unction City... 1,700
1,280
Pikeville
22,012
Ottumwa
20 925
Lanark
1,518
15,152
Law-renceville
Ansonia
' Hammond
'
1,1
2,161
ke Village.... 1,074
Pineville
1,080
Panora
Lansing
2,650
Harmony'
1,100
Lindale
Avon.
1,500
Leslie.......... 1,898
3,021
Pollard
11,537
0
6 2°7
1,18
Pella
1.428
Hartford City..
La Salle
... 3,041
Bethel
Lithonia
Lewisville....... 1,200
Prestonsburg.... 1,120
4,630
31,902375
Lawrenceville.
Perry
1,039
HHoobpeart
1,650
Louisville
Bloomdeal
3,015
LITTLE ROCK 45,941
Princeton
4,830
Redoak
Lenanon
Leb
Lumber City.... 1,195
Branford
- 2,560
2,084
Lonoke......... 1,547
Providence
1,205
2,284
2 100
11, 2533
27
Reinbeck
Lemont
Howell
.. 1,140
102,054
Lumpkin
Bridgeport
McGehee....... 1,157
5,340
Richmond
1,076
1,168
Remsen
Huntingburg.
... 9,527
McCaysville.... 1,253
Bristol
2,045
1,038
Russell
1,702
10,264
2 472
Rock Rapids.... 2,005
Huntington
1,160
Leroy
McRae
Broadbrook... .. 1,400
3,111
ia
rin........ 2,778
Russellville
Nialar,lo
Mag e
2,312 - Hymera
1,515
Rock VaIley..... 1,198
Lewistown
.
40,665
Brooklyn... .... 1,750
Macon
Marianna....... 4,810
1,327
Scottsville
1,318 . Indiana Harbor.. 4,850
Rockwell City. . 1,528
Lexington
2,412
Burlington
Madison
,
Marked Tree.... 2,016
1.500
Scbree.
1,724
2,201
INDIANAPOLIS
Libertyville
Sac City
5,949
.
1,000
Marietta
Central Village
3,953
3,412
Mena
Shelbyville
'
1,174
10,892
233,650
Sanborn
Lincoln
Marshalbsille.,.. 1,082
1,500
Cheshire
2,274
Monticello
4,491
Somerset
2,290
1 500
Seymour.
Litchfield
Irvington
1 :300
200
jilledgeville.... 4,385
I% ii en
Chester.
Morrillton...... 2,424
1,329
Springfield
2,941
3,295
Sheldon.
21:000030
Livingston
Clinton
2,374
Nashville
1,532
Stanford.
4,976
21:519736
251,092957551
Shenandoah
Lockport
2,500
Collinsville
Millhaven_ ....
1,080
Nettleton
1,467
Sturgis
1,330
10,412
Sibley
1,247
:
Lovejoy
dtereirv nv
asPrsc iieille.
2,000
Cromwell
Milltown
1+500
....... 3,557
Newport.
1,356
Uniontown
1,019
1,011
Lovington.
Sidney
onesboro.
20,234
Danbury
Monroe........ 3,029
1,769
Osceola
1,145
Vanceburg
2,032
4,981
Sigourney
Lyons
i,cudallville
2,934
Danielson.
Montezuma..... 1,630
1,146
2,268
Ozark
Versailles
:
4
1;
1,209
...
Sioux Center.... 1,064
McLeaosboro. .. 1•0 1
m Henry
2 400
1:480
M0nitcello
Ni00tirie .... 1,508
Darien
5,248
Paragould
West Covington. 1,751
47,828
2:088
1 001
City
Sioux
3,349
Kenghtstown
Kni and
Deepriver.
1,497
Williamsburg.... 2,004
Paris
3,005
Spencer.
Macomb
Kno
.
Knightsville
8,991
New Holland.... 2,000
+744
06
Derby.
5,'
1,150
1,000
Piggott
Wilmore
1,162
1,644
Spirit Lake
Madison
5,548
1,350
Newnan
East Haddam..
15,102
.....
Pinebluff
7,156
Winchester.
2,428
1:926
239
Storm Lake
Manteno.
2,017
Kokomo
Hampton.. 2,600
East
Ocilla
Pocahontas..... 1,547
1,387
148
1°
17,
10
Story City
Marengo
Ladoga..
East Hartford- 5,500
Pelham
2,705
Prescott
LOUISIANA
1,052
20,081
Strawberry Pt.
°
0
Marion
Lafayette .
grange:
1 88
1,250
Haven
..... 1,00
East
1,859
Porterdale
Rector
1,826
27,00°943
1,772
Stuart
Marissa
915
East Norwalk... 3,600
Quitman.
. 3,
2,820
2,907
Rogers
Abbeville
1,404
1,025
1,045
Sumner.
1,250
Mark
Lapel
East Port Chester 2,000
Richland.
2,936
Russellville
1,200
Albemarle
2,290
1,160
10,523
Tama
Laporte
Marna
29 0
1:10
0
Ellington
Rock mart..... 1,034
R rae
2,331
11,213
Searcy
Alexandria
2,048
3:930
54 4
Tipton
Lawrenceburg.
1 099
. 12:059
Essex
1,677
Springdale...... 1,755
Amite
1,626
32,256991
Toledo
LLeibebarntoyn.
Marshall
Fairfield
3,100
Rossville
1,079
Siloam Springs.. 2,405
Arcadia
1,373
1,500
1,338
Traer
1,158
M ar tinse i
Marseiilvslle
3,400
Forestville
Roswell.
2,316
1,000
Stamps
Baldwin
Junction.. 2,573
2,081
2,173
Valley
Mascoutah.
1,422
Glastonbury
1,800
Royston
Stuttgart....... 2,740
BATON ROUGE 14,897
2,039
1,842
5,906
Villisca
ittonnier
,641
Mason City
Greenwich
3,686
Sandersville.....
1,126
1,000
Sugar Loaf
Bayou Goula.
3,336
11,456
19,050
Vinton
Logansport
651:,051691401
Mattoon
Groton
5,655
Texarkana
Belle Alliance... 1,000
1,326
8,033
2:235
1 1 54
Wapello.
Maywood.
Loogootee
1,860985
Guilford
3,878
2,183
Berwick
Van Buren
4,380
4,806
Washington
Melrose Park
Lowell.
4,300
Hamden
Soclannahd... .... I
SSa l Cir-e
envia
.
Walnutridge.... 1,798
1,850
Bogalusa
26,693
3,806
6,934
Waterloo
Mendota
Madison
.. 1,715
HARTFORD
98,915
Sparta
2,057
1,200
Warren
Bowie
2,025
4 655
1:316
19,359
Waukon.
Metropolis.
Marion.
Harwinton.
1,300
2,353
Statesboro...... 2,529
Wynne
Breaux Bridge... 1,339
3,205
4,529
Waverly
Martinsville..
1,062
Nlilford.
1,,(
g0
2,
Hazardvdle
Ltonroerv etain.
roe Nior.
1,765
Bunkie
5,208
1,140
Webster City
41:336131
Millstadt
Mecca
Higganum
CALIFORNIA
1,049
Colfax
1 2°7
.. 2,070
West BurlingMinonk
Michigan City... 19,02°
Huntington
1,000
Swainsboro.
2,601
Covington
24,199
1,174
ton.
Middletown
Moline
- • • 1,206
3,023
Jewett City
Sylvania
.. : 1,400
5,099
Alameda........ 23,383
Crowley
2,201
11,886
West Liberty.... 1,666
Mishawaka
Momence
.. 1,447
1,ctso
Kensington
Sylvester
Alhambra....... 5,021
2,100
De Bidder
1,652
3,438
West Union.
Monmouth.
Mitchell.
9,128
Lebanon
1,100
2,628
Talbotton....... 1,081
Donaldsonville. . 4,090
Anaheim
1,720
21:116848
Whatcheer
2,117
Monticello
Monon
1,981
Manchester
23 605
7:260
Teno ie.. ........ ....
T loosa
all
1,124
1,684
Antioch
Eunice
1,060
3,694
1,537
Williamsburg.
1,622
Montezuma
Morgan Park.
Meriden
3,857
Franklin
Angels Camp.... 3,900
4,563
Wilton JuneMonticello
1,645
Morns
Milford.
4,000
Thomas ton..... ....
T ho a s , ie
,
u
1,121
1,238
Fullerton
Arcata
1,157
2,410
2,786
tion.
Morrison
Montpelier
.. 6,727
Middletown
11,851
1,000
Garyville
Auburn........ 2,376
2,818
1,126
1,608
Winterset
Morrisonville.
Mooresville.
. 2,151
1,000
Montville
Thomson
1,065
Avalon......... 1,000
Gibsland
1,538
1,004
Woodbine.
Morton
. 2,381
Mt. Vernon
Moosup
2,300
Tifton
1.477
3,700
Gretna
Azusa..........
1,000
24,005
5 563
31:712201
Morton Park...
Muncie
Mystic
3,900
Toccoa
12,727
1,081
Bakersfield
Gueydan
KANSAS
2,260
Mound City..... 2,837
Nappanee.
Naugatuck.
12,722
Trion.
1,000
2,942
Hammond
Banning
1,686
National Military
New Britaan..... 43,916
Unadilla ...... • 1,003
2,360
1,855
Benicia
Homer
4,118
Abilene
2,300
Home
Mount Carmel.. 6,934
M unds
363
Unionpoint..... 1,
New Canaan.... 1,672
40,434
5,024
Berkeley
Houma..
1,010
20,629
Alma
7,656
New Albany
Mount Carroll... 1,759
New Hartford.... 1,500
Valdosta
1 190
1,004
Independence..
Bishop
1,462
1 13 1
Altoona
r
Newburg
0
ISi0unt Olo, r :.. 3:502
Nl 0 o t lair .eis
133,605
New Haven
Vidalia........• 1,776
2,372
2,146
ackson
Black Diamond..
2,669
Anthony
9 097
1, 46
4
1,564
Newcastle
New London.... 19,659
Vienna
.......... 1,600
2,206
eanerette
Bodie
4,850
1,229
-Argentine
Mount Pulaski.. 1,511
New Harmony
4,100
New Milford
Warrenton ... 1,368
1,565
3,925
Burlingame
ennings..
7,508
1,986
Arkansas City.
1,038
NNoewbieHsvailvleen
Mount Sterling.
1,200
Niantic
Washington..... 3,065
Jonesboro
... 1,134
Chico.......... 3.750
16,429
Atchison
8,007
141:904865
Mount Vernon
Noank
1,444
1,500
Kenner
Chino
1,235
Augusta
7
5 °22
2,729
Moweaqua
Jodso :
Cit yo: : 11:143
Norrnal
N orth
1,1°
350
Norfolk
''a ycross o .
ra nesbor .
1,114
3,609
Claremont
Kentwood
1,386
Baldwin
Murphysboro.... 7,485
1 513
North Grosvenor
NVestpoint. ...• •
6,392
Coachella....... 1,500
Lafayette
Baxter Springs.. 1,598
3,449
2,428
Manchester
9
Naperville
83
44
No.
NVri dh r v.... :
wing ets .ilie : . 2 34
Dale
34:919809
1,093
Lake Arthur
Coalinga
2,224
Belleville
/,915
Nashville
Oooth Vernon.
Ndr n.
North Haven.... 21,57°000
Lake Charles... 11,449
3,082
Colton
Beloit
National Stock
Notre Dame.... 1,200
Norwalk
, 4
1,582
Providence. 1,568
Lake
1,756
Colusa
0
tl:.)...
2,370
Blue Rapids..
afEwI .A.11.. 1;:i051;
2,700
Oakland City.
Yards
NNorworwich
20,367
1 547
1,058
Lecompte
1,462
Corona......... 3:470
Bonner Springs.
1,064
ichtown
1:532
8
Bla
2,043
Coronado.......
Leesville..
1,422
Burlingame
11:036797
21 °1324
1,070
Oolitic.
5
NNaeougyr
Ora e
1,800
Lutcher
Covina.......... 1,652
2,180
Burlington
Orleans
New Athens.... 1,131
1,071
1,200
Pia' eld
Bonners Ferry.
2,700
McDonoghville.
Crescent City... 1,114
1,132
Burroak
1,169
1,372
Osgood
New Baden
Plainville
2,500
1,800
Burke......... 1,400
1,028
Madisonville
Crockett
2,205
Caldwell
1,264
Owensville
Newman
3,543
Plantsville
1,800
Caldwell
1,500
1,166
Mandeville
Downey.
3,597
11,023107
Caney
2,108
Oxford
Newton
2,400
PI ymouth.
Coeur d'Alene.. • 7,291
1,799
Mansfield
Dunsmtur...... 1 1
Chanute.. ...... 9,272
1,278
1,872
Paoli
Nokomis
1,351
Pomfret
1,100
Emmett
1,076
Marksville
1,452
East San Jose... 1,661
Cherokee
1,293
Pendleton.
Normal.
4,024
1,444
Portland.
1 610
1,300
Mathews..
4,304
El Centro.
10,910
Cherryvale
1,055
Peru
Norris City
26,3677 (
Putnam
drangorille. . 1,534
ing
1,500
1,093
Melville .
Elmhurst.
1,548
231:,381037083
Chetopa
Petersburg.
1,200
North Alton
1,231
Ridgefield.
7:917
1 1 74
Idale .. .1 ....:
HaihoyF 1
.
3,002
Minden
Emeryville ..... 2,613
1,700
Chicopee
Plainfield
3,306
North Chicago.
Rockville
1,334
10,209
Monroe
Escondido
Clay Center..... 3,438
PI ymouth
Oakland
1,159
RoundhiU.
1,000
Kellogg......
11,845
5,477
Morgan City
1,057
Eureka
1,060
CI yde
19,444
Port Fulton
Oak Park
1,050
Rock yhill
Lewiston ....
.
1 500
Napoleonville
1,201
12,687
Folsom City.
Coffeyville.
5,130
Portland
Oblong
1,482
1.150
Rowayton
Malad City
Natchitoches .. 2,532
Bragg...... 2,408
1,130
Fort
6,448
Colby
Princeton
Odell
1,035
Salis yurdook..... 2,250
Bandb
Meridian •
5 891
24:000
4611"
7,499
8023°g41247373
New Iberia
3,064
Columbus,
.
Fresno
1,714
1,400
Redkey...
1,924
o Fa
Odinlloo.
.
M uo
M00scnpeiigiH .,
Ni0nt tl. .o.me.
1 70
4 000000
1
339,075
4.415
New Orleans
Concordia
Fruitvale
Rensselaer
2,018
3,670
Seymour.
1,725
1,292
New Roads
1,332
Conway Sprinas
uPaiallterton
22 393
2:324
Richmond
3,600
0glesby
!III, .04.e y
Sharon
1.150
Opelousas
4,623
2 545
Grove
Council
1,302
Ridgeville.
5,011
Menan.
4.807
Shelton.
2,437
Caiiaae .

Abbeville
1,141
1,500
Atton
1,200
Adger
4,313
Alabama City
1,544
Albertville
1,710
Alexander City
.. 1,071
Altoona
2,480
Andalusia.
12,794
Anniston
1,062
Ashland
1,715
Atheas
1,060
Atmore
2,513
At talla
1,408
Auburn.
4,500
Avondale
1,600
Bat teLle
10,864
Bessemer
Birmingham.... 132,685
2,800
Blocton
2,000
Blossburg
1,010
Boaz
2,185
Brewton
2,125
Bridgeport
2,100
Brierneld.
1,502
Brighton.
1,550
Brookwood
1,627
Carbonhill
1,123
Clanton
1,130
Clayton
1,122
Columbia
1,079
Columbiana
1,747
Cordova
1,500
Corona
2,130
Cullman
1,193
Dadeville
4,228
Decatur
2,417
Demopolis
1,000
Dolomite
... 7,016
Dothan
4,100
East Lake
East Tallassee... 2,000
1,500
East Thomas
1,079
Elba
1,000
El yton
4,850
Ensley
2,322
Enterprise
4,259
Eufaula
.. 1,001
Eutaw
1,582
Evergreen
2,439
Flora'a
6,689
Florence
1,317
Fort Payne
10,557
Gadsden
4,214
Girard
1,000
Grasselli
2,048
Greensboro
3,377
Greenville
1,145
Guntersville
1,111
Halevville
1,159
Hartford.
1,374
Hartsells
1,090
Headland
7,611
Huntsville
1,379
Jackson
2,231
Jacksonville
2,509
Jasper
1,979
Jonesboro
1,632
Lafayette
3,820
Lanett..
1,900
Linden
1,053
Lineville
1,384
Lucerne
1,000
McFall
1 834
Marion
51,521
Mobile
MONTGOMERY 38,136
1,000
Murray.
New Decatur. . _ 6,118
No. Birmingham. 5,500
1 065
Oakman
4,734
Opelika
1,500
Oxanna.
1,090
Oxford
2,229
Osark
4,555
Phoenix
2,226
Piedmont
4,000
Pratt City
2,222
Prattville
2,034
loanoke.
1,620
Rockford
2,046
Rossellville
Samson.
1,350
1,019
Scottsboro
13,649
Selma
4,865
Sheffield
1,400
Stockton
1,456
Sylacauga.
5,854
Talladega
1,347
Tallassee
1,500
Thomas
Thomasville..... 1,181
4 961
Troy
8,407
Tuscaloosa
3,324
Tuscumbia.
2,803
Tuskegee
4,055
Union Springs
1 836
Uniontown.
1,000
Watson.
2,500
West End.
1,103
Wetumpka.
3,500
Whistler
3,200
Woodlawn
1,000
Woodward
3,000
Wylam
1,000
Yolande

o7

CALIFORNIA Cont'd.
2,746
Glendale
Glendora........ 1,500
Glen Ellen
1,55
Grass Valley.... 4 220
Halfmoon Bay.. 1,500
4,829
Hanford
71 1
2:046
Haywards
Healdsburg
1,700
Highland
2,308
Hollister
1,400
Hollywood
Huntington Park 1,299
1,257
Imperial
1,536
Inglewood
1,000
Irvington
2,035
Jackson..
2,500
ICennett
2,100
Kern
2,000
Keswick
1,000
Lemoore
1,402
Lincoln
1,814
Lindsay
2,030
Livermore
2,697
Lodi
1,482
Lompoc
17,809
Longbeach
319,1C8
Los Angeles
2,232
Los Gato2,404
Madera
Martinez
2,115
Marysville
5,430
Mayfield
1,041
3 250
1 102
:
Mendocino
Merced
Mill Valley
2,551
Modesto
4,034
Mokelumne Hill
1,000
3,576
Monrovia
4,923
Monterey
Mountain View.. 1,161
5,791
Napa
National City... 1,733
1,500
Needles
Nevada City.... 2,689
1,500
Niles
:135
074
Oakdale
150
1
Oakland
3,119
Oceanpark
1,000
Ocean View
4,274
Ontario
2,920
Orange
3,859
Oroville
2,555
Oxnard
/,384
Pacitic Grove...
4,486
Palo Alto
30,291
Pasadena
1,441
Paso Robles.
5 080
1: 00
8
Pescadero.
Petaluma
1,719
Piedmont
1,914
Placerville.
1,254
Pleasanton
1,500
Plymouth
10,207
Pomona
1,000
Port Costa
Portersville
2,696
1,000
Randsburg
3,530
Red Bluff
3,572
Redding
. 10,449
Redlands
Redondo Beach .. 2,935
1 802
Redwood City... 2:440
Reedley
6,802
Richmond
15,212
Riverside
1,026
Rocklin
2,608
Roseville
SACRAMENTO 44,696
1,603
St. Helena
3,736
Salinas
San Andreas.... 11:573001
San Anselmo.
19 5 8
:
San Bernardino. 32 779
San Diego
1,100
San Fernando.
2 910
San Francisco. 416:002
Sanger
28,946
San Jose
3,471
San Leandro.
San Luis Obispo. 5,157
4,384
San Mateo
6,000
San Pedro
. 5,934
San Rafael
8,429
Santa Ana
Santa Barbara... 11,659
Clara
Santa
11,3146
Santa Cruz
2,260
Santa Maria.
7,847
Santa Monica.
Paula..... 2,216
Santa
7,817
Santa Rosa
1,500
Saratoga
2,383
Sausalito
2,143
Sawtelle
1,233
Sebastopol
1,750
Selma
1,303
Sierra Madre.
2,300
Soldiers Home.
2,029
Sonora
South Pasadena.. 4,649
South San Fran
1,989
23,253
Stocsc6
ci lc ton
Sutter Creek.... 2,000
1,500
Taylor
1,250
Truckee
2,758
Tulare.
1,000
1,573
TTuruolloucinkne
2,136
Ukiah
2,384
Upland
.. 1,177
Vacaville
11,340
Vallejo
5,000
Venice.
2,945
Ventura
4,550
Visalia
4,446
Watsonville
1,922
Watts
1,100
Wha y ierille
We it ten
4,550
1,153
Willits
1,139
3,187
\.00d and
\\ ilk:1'o
, el
\,.
1,134
1,160
Yuba City

F. am
Nari3pa

MASS Coned
.

LOUISIANA Cont'd.
2,998
Patterson
1,212
Pineville
4,955
Plaquemine
Ponchatoula.... 1,055
2,247
Rayne
1,079
Rayville
3,377
Ruston
2,318
St. Martinville.
28,015
Shreveport
2,188
Slidell
3,824
Thibodaux
1,345
A'idalia
1,528
Washington
1,250
Welsh
1,700
Westlake
1,127
West Monroe...
2,289
Whitecastle
2,925
NVinnfield
1,000
Yellow Pine
MAINE
1,3'00
15,064
13,211
24,803
3,000
9,396
4,618
2,000
17,079
1,100
1,800
1,203
,661
1,474
1,300
5,341
1,800
6,116
2,900
Camden
Cape Jellison.... 1,200
4,700
Caribou
1,400
Cherryfield.
1,200
Clinton
1,100
Corinna
Cumberland
2,500
Mills
1,200
Danforth
1,600
Deer Isle
3,200
Dexter.
1,800
Dover
East Machias. . 1,300
4,961
Eastport.
3,549
Ellsworth
2,801
Fairlield
1,240
Farmington
Fairfield.... 1,620
Fort
3,000
Fort Kent
1,800
Foxcroft
5,311
2,200
gaorrchianneir.
1,200
Greenville
1,600
Guilford
2,864
Hallowell
1,500
Hampden
1,100
Hartland
1,100
Hodgdon
5,700
Houlton
1,600
Island Falls
1,600
Jonesport..
2,500
Kennebunk
Kennebunkport.. 2,400
2,600
Kittery
26,247
Lewiston
1,167
ln
o
lit a
1,600
2,300
Falls...
Lisbon
Livermore Falls. 2,200
3,100
Lubec
2,000
Machias
Iklachiasport.... 1,100
2,408
1,500
Mechanic Falls.. 1,600
1,475
Millbridge
3,200
Millinocket
1,500
2,400
nown
1,200
Monticello
1,630
Newport
1,500
Norridgewock..
North Anson.... 1,200
North Berwick.. 1,900
2,215
Norway
2,100
Oakland
6,317
1 ono
r
2dtown
3,4(30
2,231
Pittsfield
53,571
Portland.
Presque Isle..... 2,938
1,000
Princeton
1,000
Randolph
1,650
Richmond
8,174
Rockland
Rockport....... 1,600
Rumford Fa.a... 5,427
1,200
p. ottus
aba
c
6,583
Sanford... ..... 6,800
1,250
Searsport
3,200
Skowhegan.. .
1,000
Solon
South Berwic..... 2,700
1,542
South Paris
Sooth ‘n!Lin.
outii to t ni
ir
:
1 0(
1
7„/7)
s
2 000
Springvale
41000
2,.90
. 11, 0
Stomngton
1,700
Tenants Harbor
Thomaston
1,700
To pe
uppsha
Ashland
Auburn
AUGUSTA
Bangor
Bar Harbor
Bath
Belfast
Berwick
Biddeford.
Bluehill
Boothbay Harbor
Bowdomham.
Brewer
Bridgton
Brownville
Brunswick
culaisport
Iia cks

1:1L1 it311

3 400
1'0 °
0
Vanburen
r :nliadawaska 2,200
Warren
weus
d
‘'ba°v1:.
INI:aa rsn1re
IV inie°1' e

1
: 12,420508
1 200
1 201
8:080
Westbrook...Wilton
1:300
000
Winslow....
1,500
1,600
1,200
1,100

1%:inierWr 1
W i throp..
Yarmouthviile
York Harbor
York Village
MARYLAND
ANNAPOLIS
Arlington
Baltimore.
Barton......
Belair
B rooki
Berlin ya
Brunswick
Carroll
Cambridge
.
C e t te sv di e
canonrville

;4 9
55,4 %05
le)00
2,000
1,005
1,317
3 200
1:721
2,030
6 407
1:405
4 530

73
1: 6
Chesapeake City.. 2 015
coektersoilin ..
Clacse y tv w e
1,500
3,468
Crisfield
21,839
Cumberland
2,000
Deal Island
1,481
Denton
1 0,0
, 3:583
Easton
Ea strxwt.
700
Eckliart Mines.. 1:000
Elk Ridge
2,487
Elkton.
Ellicott City.. . 1,151
1,054
Emmitsburg.
1,050
Federalsburg.
1,200
Fords Store
10,411
Frederick
6,028
Frostburg
1,500
Govanstown
16,507
Hagerstown
1,500
Hamilton
4,212
Havre de Grace
1,917
Hyattsville.
1,000
Lauraville
2,415
Laurel.
1,000
Lime Kiln
1 553
Lonaconing
1,173
Midland
Mount Rainier.. 1,242
3,600
Mt. Savage
Mt. Washington. 1,600
1 500
Mt. Winans.
1,366
Oakland
1,300
Ocean
1,500
Orangeville
1,191
Oxford
1,200
Pikesville
Pocomoke City.. 2,369
Port Deposit.... 1,394
1,006
Princess Anne.
1,000
Reisterstown.
2,000
Relay
1,181
Rockville
. 1,517
St. Michaels...
6;690
Salisbury
1,000
Savage
1,844
Snow Hill.
2,600
So. Baltimore
4,000
Sparrows Point
1,159
Takoma
1,000
Texas
3,700
Towson
2,000
Waverly
2,702
Western Port
Westminster
3,295
1,000
Westport
Williamsport.
1,571
13,000
Woodberry
MASSACHUSETTS
Abington
2,800
11,900
Adams
-Agawam
1,500
Amesbury
8,000
Amherst
3,200
6 100
Andover
8,900
Arlington
Arlingtun Hgts
2,200
1,510
Ashland
1,200
Assonet
Athol
6,000
Attleboro
12,400
Auburndale
1,500
1,000
Avon
2,610
Ayer
Baldwinsville
1,500
Barre
1,700
Belchertown
1,410
Belmont
3,910
Beverly
18,650
Beverly Farms
1,000
Billerica
2,000
Blackstone
3,400
Bondsville
1,750
BOSTON.
670 585
Braintree
2,600
Bridgewater
3,000
Brockton
56,878
Brookfield
1,500
Brookline.
27,792
Cambridge.
104,839
Canton
3,700
Chatham
1,000
Chelmsford
1,900
Chelsea.
32,452
Cherry Valley.
1,200
Chester.
1,000
Chicopee.
25,401
Chicopee Falls
8,500
Cliftondale
3,500
Clinton
13,000
Cochituate
1,300
Cohasset
1,000
Colerain
1,200
Collinsville.
1,200
Concord
3, Concord Jc.
1,850
Dalton
3,000
Danvers
7,950
Danversport
1,000
Dartmouth
1,
600
Dedham
3,900
Deerfield
1,100
Dracut
2,100
Dudley
2,550
East Braintree
1,200
East Bridgewater 2,900
East Dedham.
3,800
East Douglass.
1,500
Easthampton
8,110
East Milton
1,700
East Pepperell
2,400
East Taunton
1,000
East Weymouth. 4,000
Edgartown.
1,000
Everett.
33,484
Fairhaven
4,980

Fall River
119,295
GFFolajoxbembooru‘o,tilla.h.
1,525
Feed,.i
ing
..
1,300
Fis" ...... ,1,200
ue
826
2,300
rh ,
tdcnnce. ...
1loe burg..... . '1:000
Fl
io
Framingham..
Franklin........
Gardner........
Georgetown

3,000
,
',COO
4,13,910
1,500
h,250

MICHIGAN Coned.
8,981
1,556
1,805
1,555
1,268
4,383
1,200
10 190
4 20
:4
5,001

Hancock
Harbor Beach
Harbor Springs.
Hart
Hartford
Hastings.
Hermansville
Highland Park
sda e.
Holland
Holly
Homer
lioughton
Howard City
Howell
II ubb ll
mla yec
Hudson.

MINNESOTA Coin'd.
Winnebago.
Winona
Winthrop
Worthington
Zumbrota__

1,554
18,583
1,043
2,385
1,138

MISSISSIPPI

Akerdeen
3,708
Ackerman
1,398
Amor y
2,122
1,007
538
Bay St. Louis
3,388
3,113
Belzona
1,059
ot
uG loucn ste:
Grreaot e B. .an......g
24,398
1,046
Biloxi
8,049
Grafton...
1,250
2,338
Booneville
1,337
Graniteville
3400
1,200
1,059
Brookhaven
5,293
2,178
Canton
3,929
1,174
Charleston
1,834
Greenfield
Ionia
9,910
5,030
Clarksdale
4,079
1,750
Iron Mountain
9,216
Cleveland.
1,001
Groveland
1,900
Iron River
2,450
Collins
2,581
- -- 1650
Ironwood
1122:484281
Columbia
2,029
)71,710
,3 30
Ishpeming
Columbus
8,988
Hiiiiiiuoc.o!;:duii . .: ..: . • . - ..--..... ;320040
alild.l...:
a:
iinotoi'
hn t.nklo
t
l:1,50
, 0
]that a
1.......w e
1 i ...
1,876
Corinth
5,020
44,1000
23:4210
5
Ktilockska sn
ane so:ja,
v
31,433
Crystal Springs.
1,343
Haydenvme
1 100
1:0 0
L, kia:fla
e iod:
ann n,
Durant
1,881
Ellisville
2,446
Forest
1,136
39 415
11:327967
1,
4
Gloster
1,486
2,000
Lake Linden.... 2,325
Graysport
1,409
3 246
1:922
Greenville
9,610
1,500
31,229
Greenwood
LANSING.
5,836
Grenada
2,814
IHI I0: nin 0
H°:i nnluystaaleoet'oc. , 33
.thg dtg
I 1i1 Pein nel
ns k
a
.,2: Le iei.' a
2 000
1'
0
f
a-a
l
6,386
Gulfport
Hattiesburg
110.33
8,0362
9 031
1 54
:1 :
7
Hazlehurst
2,056
Hyannis
Lowell
Holly Springs
2,192
Hyde Park .._. • 14,507
Ludington
Houston
1,400
Indian Orchard- 6,200
Mancelona
Indianola
1,098
Ipswich.. ..... 5,000
11,0°°
Manchester
247
Ittabena
1,427
Kingston ..... 1,950
Manistee
12,381
Iuka
1,221
Lakeville.....• 1,000
Manistique...
4,722
JACKSON.
21,262
Lancaster .... 1,400
Manton
1,069
Kosciusko
2,385
Lanesville .
1,030
Nlarcellus
431 047
1::02 7602
736
Laurel
8,465
Lawrence......... 85,892
Marine City..
Leland
1,547
3, 0
00
Marlette.
Lexington
2,428
1,100
Leeds.......
Lee
Marquette
11,503
Long Beach
1,026
Leicester.
1,500
Marshall.
Louisville
1,181
1,742
Lumberton
2,122
: 2°0 I1 as' •
14 910 1loandinee
2 40
0
Lin :.r.
Len o dt
Leo i, s .e
f
NN iei n
/ c:s n,
4
McComb
6,237
Lexingtoa
10,
10
5r7
Macon
2,024
2,527
Magnolia
1,823
.:. ;
. ..106 294
Lowell.
1,355
Meridian
23,285
: Mohawk.
33,6050
!
,33
,
Luglow
L o
1,000
Moss Point
3,054
.8
Mount Olive
1,077
5
400:
44, 04
11514,,74579
Malden.
Natchez
11,791
91
N1or rn°cCle m ens.
1 11ttun,Ig
‘114giIans n
ni
ae
:
New Albany.
2,032
Ovount Pleasant.
N.I id
/Vlanches g
M-an a uter
Newton
•
1,878
Mansfield
Ocean Springs.
1,472
0
,9
,110
7, 0 Muskegon
Marblehead..
2416723 ,9062
875 057912
2375
Okolona
2,584
Marlboro
Muskegon IIgts.. 1,690
Oxford
2,014
Nadeau
Maynard
Pascagoula
3,379
Negav nee
ashuille
Medfield.
1,346
0°
°
Pass Christian_
2,458
Medford
Philadelphia
1,209
Newaygo
8 660
1:26852
: 07
4
1
Pontotoc
1,277
MelrOsey
Med va
Newberry
Poplan-ille
1,272
Niles
Meirnidt ks.Highmelarrose
3,156
Port Gibson
2,252
Norwa ille
N rthvy
Richton
1,250
4 772
2:904
Rolling Fork.
1,000
Merrimac
Rosedale
1,103
0ntonigon
°nawa
,21,60864
1,:937 2
1,8
Sardis
1,406
Nleclh uen ro
N,Ii 1d1ebo
Osceola
11, 00
,4 1
1,
Senatobia
1,275
Otsego
Milford.
Shubuta
1,168
4','320501:0
41320
'00
,
Millbury
Starkville
2,698
Millville
Owosso
Stonewall
1,000
Milton
Oxford
Summit
1,471
. . 3933:5'00610
21 2129,, :05,00
723 740
002G1979 0
1115
ppteeainw ,twpoda e
.Nloos eague. . : Pa:anetwiel1r
2siittin n
o
l:
li sa
r: ,
1,250
Sumrall
2,046
Tupelo
3,881
Nantasket
1,089
643
\ icksburg
20,814
Nantucket
Water Valley.
4,275
Natick..
Petoskey
4:,499
1 728
1 73
Wesson.
2,024
Needham
\Vest Point
4,864
Needham Hgts 82:970%
Plymouth.
1,671
Winona
2,512
0
;60
96 632
QI,on tiac
Po tht nHorcrio
New Bedford
ur ese
11 8:863
4 532
Woodville
1,233
14,949
toa
Newburyport
Yazoo City
6,796
Portland.
,,730000
,0
00
e t o
Neidn Ceigter. 216
N t os H n....
h,
MISSOURI
New ios Lower
Fati n
New tc:n
i
54 3700:000
2,
New ionvi1Ie
Fatls
bUipnpegtorn
Nort
North Adams. .22,019
North Amherst. 1,500
B
Nor tth A rain . . ..139,,,4010000:
sou ham ptantree 19
1
North Andover 5130
.. 7 910
Nor th bA ale.oro 1:500
N rt h rit tgeb
Northboro
.;:rmi
N:fmrrotthorhduB ooki7r .fnsi.:d.
NNor th Leo . e1
N r t h: .
o
t. Dch
13.0000
,5300000
80
7
North Dightoa
100003
h,I ab preni .
o .
N0rretr.,0cpdut ayerno.s , 34,1,0,: 2700500
NN00tr wh E stFn ii 13 09 0
,400
00
Nort h Gria ua n
N t sc tftote 1, 0
1,9 10
1 950

Oak Bluffs.

. 14,910
1 600
,

Orange
Oa fmrd
P xl o er
CPQR

73,121
Peaib.
la sl6d yd
ittriie le
vl
il
anusitchya
PI y mouth...... .l,200
4,:9140
20 0
6
2
Provincetown... i41,02
.......
...341,,,200050000
PRPandolPh
1,10,0
itea ‘
ea .ig
R dinlle
......
Rehoboth
. 314:3 0
5,11. 0
o ete
kt
Reuvki drdt
RRoc?
.11,:102500000

Reading...
Qeel Ja
Rui c ycket
l
'
Reed City
Republic
Richmond
SRto.a•errouge
Ri chleasitr r .
C e.

11,102
1 :038°43°
27
4,211
1,690
4:103
2 462
1,277

1,221
1,919
6,960
1,353
1,204
5,099
1,677
1,690
2,319
1,377
8,526
1,840
1,058
1,227
1,005

Alba
1,500
Albany
1,922
Appleton City.
1,018
Ashgrove
1,075
Aurora
4,148
Bethany
1,931
Bevier.
1,900
Bloomfield
1,147
Bolivar
1,975
Bonneterre.
5,700
Boonville
4,252
Bowling Green.
1,585
13raymer.
1,027
Breckenridge. .
1,025
Brookfield
5,749
Brunswick
1,606
Butler
2,894
California.
2,154
Cameron
2,980
Campbell
1,781
Can ton
2,218
Cape Girardeau.
8,475
Carl junction
1,115
Carrollton
3,452
Carterville
4,539
Carthage
9,483
Caruthersville.
3,655
Centralia
2,116
Chaffee
2,082
Charleston
3,144
Chillicothe
6,265
Chitwood
1,600
Clarence
1,322
Clayton
1,500
Clinton
4,992
Columbia
9,662
Crane.
1,002
Crystal City.
1,800
Deepwater
1,398
Desloge
4,000
Desato
4,721
Dexter
2,322
Doerun Junction
1,200
Doniphan.
1,222
Duenweg
2,500
East Prairie
1,500
Edina
1,562
Edna
1,209
Eldon
1,999
Eldorado Springs 2,503
Elsberry
1,018
Elvms
2,071
Excelsior Springs 3,900
Farmington
2,613
Fayette
2,586
Ferguson
1,658
Festus.
2,556
Fisk
1,000
Flat River
5,112
Fornfelt
1,200
Fredericktown.
2,632
Fulton
5,228
Gallatn
1,825
Glasgow
1,507
Granby
2,442
Grandin
1,000
Graniteville
1,000
Grant City.
1,207
Greenfield
1,434
Hamilton
1,761
Hannibal
18,341
1,947
Harrisonville...
1,057
Hayti

1,372

Hermann

1:282
516
Rockland
Romeo
(}nLrak.
agc Oles
t .a w
oi

1,071
50:4 10
1 55 1

s
1
St. Igna Heights
s .Clairce
al
t iosep
: h neish

2;613
138
3 254
11 2
:

5,936
St. Louis
1,940
:ukSkPeerxiia)n,ngdrw Marie. 12,615
Sault Ste.
eezaing
1,347
1,260
South Haven
3,577
South Range
1,097
Sparta.
1,203
3,535
1, 00
6
Stambaugh
1,322
Stanton
1,012
Sturgis
Tawas City
1,061
Tecumseh.
2,332
Three Oaks
1,175
Three Rivers
Traverse City.
12,1 4204
5 072
1 31 5
2
Trenton
UnicanCit y
vulon
\,
Va
\
1: 50
69
50
Vicksburg
1,624

T

.1;I al hrid,ran
NVes Botrteech.. ..
yeat e
hite
ssarhall
1Villiainston
Wa yne

1,263
1,276
1,437
5 040
1 102
:

Azeeiaiilon ti
Ydr aad
ps n

8,287
1,223
6,230
1,982

Rowley
..3,:0597
11 6000
0
Sandwich
Saugus '
Sale m
axonvilie
Schiet
Sheffield

MINNESOTA
50
. 1:700
0

hmery
il
Soh l mville
South Ashburn-

Affa
tkin
3,200
1,236
,030

0,210
u thbr
.
Soha m idge
South Framinguai H
SoFthis adley...1,400
South Hadley
South Weymou :320
)00
Spencer.
Springlield.....s"?26
Stockbridge.. .100
Stoneham... .40
swa glpscn.
Stoum itoott...,.
°
Taunton......
Thorndike
e
Falls
TUurxbnriedrgs
Wakefield.
Walpole
Waltham
Ware.
Wareham
Warren
Watertown
1
.
Waverlev
Webster
1 ,,
A ellesley
1 t
Wellesley Hills.. 1 1
Westboro
'
West Bridgewater
Westfield
1
West Medford.
West Medway.
'
Westminster.
West Newton... 1
Weston.
1
Westport
West 4ringfield )
West Upton
)
West Warren.
)
Weymouth
)
Whitinsville
)
Whitman
)
Wilbraham.
Williamstown
)
Willimansett... )
- )
Wilmington
3
Winchendon.
0
Winchester
,
Winthrop...... 14
- ,
18
Woburn
140
Worcester
0
Wrentham
MICHIGAN
,3
Adrian
'3
Albion
4
Algonac
9
Allegan
' .
0
Allouez.
7
Alma
6
Alpena
.7
Ann Arbor
• 9
Bad Axe
0
Baltic
'8
Bangor
1
Baraga
Battle Creek.... '7
6
Bay City
)0
Beacon
9
Belding.
,0
Bellaire
'.
.5
3
Benton Harbor.
Bessemer..
.9
Big Rapids
,7
Birmingham. • • • s
i
Blissfield.. • • - - - .3
.
Boyne City
:a
Bronson..
,1
Buchanan
.5
Cadillac........ ,3
Calumet..
'2
Caro
1
Carrollton...... .6
Cass City....
'
a
Cassopolis...... ;
Champion
3
Charlevoix. •• ••. s
Charlotte
... a
I' ..•....... 3
he lsf
ie o n
ey
i
3
Chesanmg.....
1
Clare.........
Clinton......... ,
Coldwater...
I
Constantine
1
r
aorunna....... )
.
Croswell........ i
Falls..
.,
Crystal
Decatur........ )
Delray..... ..•• 5
Detroit......... 4 )
Dollar Bay.
..... i
Dowagiac....... )
Dundee.. • . • - - • /
Durand........ ,
East Jordan- • - • i
East Lake...... ,
.... i
East Tawas
Eaton Rapids.
3
Ecorse.......... t
Elk Repids..... 4
Escanaba....... 0 7
ia•art1. e.. ........... 1
ssex 1
1
. .
Fenton.....
. a
Firnd1fO1-;•...
oan i r). ...
r 1.
Fremont........
Gaylord. ...
Gladstone......
Glenwood.. • • • • Grand Ha ven.. Grand Ledge . • "
Grand Marais...
Grand Rapids- •
Grayling- ...
Greenville. • •
Gwinn.....
H.aintranick• • -

Aleillan MIR

'95
9
i
1
3
5
3
3
I
5
5
3
9

Albert Lea
:knoleton
A pp ka
Aurora
Austin
Barnesville.
Belleplaine.
Bemidji
Benson
Biwabik
Blue Earth
Bovey
Brainerd
Breckenridae.
Caledonialley .
Brown Va
Btiffbly
cana o
Buhl

1,432
1,112
1,638
2, 70
3,902
0
6 102
3:09 1

1,528
Cannon Falls. . 1,385
2,011
Cass Lake
2,050
Chaska.
1,228
Chatfield
7,684
Chisholm
7,031
Cloquet
1,613
Coleraine
7,559
Crookston.
1,318
Dawson
1,031
Delano
2,807
Detroit
78,466
Duluth
East Grand Forks 2,533
1,191
Edina Mills
3,572
Ely
7,036
Eveleth
1,015
Excelsior
2,958
Fairmont
9,001
Faribault
1 024
Farmington
6,887
Fergus Falls
1,075
Fosston
1,645
Frazee
1,700
Gilbert
1,788
Glencoe
2,161
Glenwood.
2,230
Grand Rapids.
1,454
Granite Falls..
3,983
Hastings
8,832
Hibbinv
3,200
Hoelei is
2,368
ILIchinson
1,487
internael Falls
1,907
Jackson.
1,173
Janesville
1,151
Jordan
1,237
Kenyon
3,142
Lake City
1,055
Lake Crystal
1,755
Lesueur
2,333
Litchfield
6,078
Little Falls.
1,250
Long Prairie...
2,540
Luverne
1,273
Madelia
1,811
Madison
10,365
Mankato
2,152
Marshall
2,591
Melrose
1 102
Milaca
Minneapolis.. 301,408
3,056
Montevideo
Montgomery.
1,267
4,840
Moorhead
1,685
Morris
1,081
Mountain Lake
1,343
Mount Iron
2,080
Nashwauk
1,554
New Prague.
5,648
New Ulm.
3,265
Northfield
1,279
North Mankato
1,404
North St. Paul
1,774
Ortonville.
1,013
Osakis
5,658
Owatonna
1,801
Rapids
Park
1,019
Pelican Rapids
1,376
Perham
1,258
Pine City
2,475
Pipestone
Plainview
1,175
Preston
1,193
Princeton
1 555
Proctor
2,243
Red Lake Falls
1,757
Red Wing
9,048
1,666
Redwood Falls
Renville
1,182
Richfield.
/,673
Rochester.
7,844
Rushford
1,011
1,159
St. Charles.
10,600
St. Cloud
2 102
St. James
1,743
St. Louts Park
214,744
ST. PAUL
4,176
St. Peter
Sandstone
1,818
Sauk Center.
2,154
Sauk Rapids
1,745
Shakopee
,
Sleepy Eve.
2,247
South St. Paul.
4,510
South Stillwater. 1,343
Sparta.
1,050
1,482
Springfield
1,817
Spring Valley.
Staples
2,558
Stillwater
10,198
Thief River Falls 3,714
Tower
1,111
1,876
Tracy
4,990
Two Harbors.
Virginia
10,473
Wabasha
2,622
1,820
Wadena
1,613
Warren
3,054
Waseca
1,273
Waterville
1,755
Wells
West Minneapolis 3,022
2,660
West St. Paul
1,300
Wheaton..
White Bear Lake 1,505
4,135
Willmar
1,749
Windom

1,592

MONTANA Coned.
Boulder
Bozeman
Butte
Centerville
Deer Lodge
Dillon
East Helena
Forsy th
Fort Benton
Glasgow
Glendive
Great Falls
Hamilton
Havre
HELENA
Kalispell.
Kendall
Lamedeer
Lewistown
Livingston
Marysville
Meaderville
Miles City
Missoula.
Philipsburg.
Red Lodge
Roundup
Sandcoulee
Stockett
Walkerville
1Vhitetish

1,300
5,107
39,165
2,51)0
2,570
1,835
1,200
1,398
1,004
1,158
2,428
13,948
2,240
3,624
12,515
5,549
1,200
1,550
2,992
5,359
2,000
1,850
4,697
12,869
1,109
4,860
1,513
2,000
1,400
2,491
1,479

NEBRASKA

NEW JERSEY Coned
Guttenberg.
5,647
Hackensack..
14,050
Hackettstown
2,715
Haddonlield
4,142
Haddon Heights
1,452
Haledon
2,560
Hammonton
5,088
Harrison.
14,498
Ilasbrouck Hgts
2,155
Haw thorne
3,400
Hibernia
1,400
High Bridge.
1,545
Highland Park
1,517
Highlands
1,386
Hightstown
1,879
Hoboken
70,324
Holly Beach
1,901
Hopewell
1,073
Hudson Hgts
1,500
Irvington
11,877
c mesburg.
a
2,075
ersey City
267,779
uliustown
1,000
earny
18,6:3
Keyport
3,554
Lakehurst
1,000
Lakewood
4,000
Lambertville
4,657
Leonia
1,486
Little Falls.
3,600
Little Ferry
2,541
Lodi
4,138
Long Branch
13,298

l

Lyndhurst

Ainsworth
1,045
Albion
1,584
Alliance
3,105
Alma
1,066
.Ashland....
1,379
Auburn.
2,729
Aurora
2,630
Beatrice
9,356
Benson
3,170
Blair
2,584
Bloomfield.
1,264
13rokenbow
2,260
Cambridge
1,029
Central City.
2,428
Chadron
2,687
Clay Center
1,065
Collegeview
1,508
Columbus
5,014
Cozad
1,096
Crawford
1,313
Creighton
1,373
Crete
2,404
David Cita
2,177
Dundee.
1,023
Edgar
1,080
Fairbury.
5,294
Fairfield
1,054
Falls City
3,255
Florence.
1,526
Fremont
8,718
Friend
1,261
Fullerton
1,638
Geneva
1,741
Genoa
1,376
Gothenburg
1,730
Grand Island
10,326
Hartington.
1,413
Harvard..
1,102
Hastings.
9,338
Havelock
2,680
Hebron
1,778
Holdrege
3,030
Humboldt
1,176
Kearney
6,202
Lexington
2,059
LINCOLN
43,973
Loup City
1,128
McCook
3,765
Madison
1,708
Minden
1,559
Nebraska City
5,488
Ncligh.
1,566
Norfolk
6,025
North Bend
1,105
North Platte.
4 793
Oakland
1,073
Omaha
124,096
O'Neill
2,089
Ord
1,960
Osceola
1,195
Pawnee City
1,610
Pierce
1,200
Plattsmouth
4,287
Ponca
1,000
Randolph
1,137
Ravenna
1,359
Red Cloud
1,686
St. Paul
1,336
Schuyler
2,152
Scot tsbluff
1,746
Seward
2,106
Shelton.
1,005
Sidney
1,185
Sioux
,
South Omaha
26,259
Stanton
1,342
Stromsburg
1,355
Superior
2,106
Sutton
1,702
Tecumseh.
1,748
Tekamah
1,524
University Place
3,200
Valentine.
1,098
Wahoo
2,168
%N.a yne
2,14
Weeping Water... 1,067
Westpoint
1,776
I% Aber
.. 1,219
Wisner
1,081
NV ymore
2,613
York.
6,235
NEVADA
Austin
1,300
CARSON CITY
2,466
Columbia
1,000
East Ely
1,500
Elko
1,677
Ely
2,055
Eureka
1,800
Goldfield
4,838
Gold Hill
2,100
Hawthorne
1,000
Horn Silver
1,000
Las Vegas
1,500
Lovelocks
1,000
McGill
2,200
.. 1,000
Pioche
Pioneer
1,200
Rawhide.
5,100
Reno
10,867
2,500
Sparks
Tonopah
3,900
Virginia City
2,244
Winnemucca
1,786
NEW HANIPSHIRE
Ashland.
Berlin
Berlin Mills
Bethlehem
Bristol
Canaan.
Charlestown..
Claremont
Colebrook
CONCORD..

1,390
11,780
1,200
1,100
1,200
1,000
1,000
6.800
1,200
21,497

1,243
Hibbard
1,100
Conway
Higbee
1,215
2,500
2,628
Higginsville
Derry
13,247
2,007
Holden
Dover
2,247
Huntsville
Dover Point... . 1,1100
1,700
9,859
Independence.
East Jaffre;
1,200
2,105
Jackson
East Rochester.
1,100
Epping
JEFFERSON
4,800
11,850
CYTY
Exeter
32,073
2,000
Farmington
Joplin
1,758
6,132
Kahoka
Franklin
2,100
248,381
Goffstown
Kansas City
1,000
3,033
Kennett
Gorham
6,347
1,000
Greenville
Kirksville
4,171
1,900
Groveton
Kirkwood
1,017
... 1,500
Labelle
Hanover
1,360
1,225
Lagrange
Ilenniker
1,200
2,316
Lamar.
Hinsdale.
10,068
1,605
Keene
Laplata
10,183
1,038
Lathrop
Laconia
2,430
2,900
Lebanon
Lancaster
1,455
4,500
Lees Summit
Lebanon
1,800
5,242
Lexington.
Lisbon
3,059
2,980
Liberty
Littleton.
4,434
1,000
Londonderry
Louisiana
3,584
70,063
Manchester
Macon
1,000
2,116
Malden
Marlboro
4,976
1,410
Meredith.
Maplewood
3,920
3,200
Marceline.
Milford.
1,272
26,005
Marionville
Nashua
4,869
3,200
Marshall
Newmarket
3,200
1,193
Marshfield
Newport.
4,762
2,000
Maryville
North Conway
1,700
. 1,051
Maysville
North Walpole
1,984
1,650
Peterboro
Memphis
2,000
5,939
Pittsfield
Mexico
1,500
2,191
Plymouth
Milan
10,923
11,269
Portsmouth
Moberly
8,868
4,177
Rochester.
Monett
1,949
1,000
Rollinsford.
Monroe City
1,000
Montgomery City 1,789
Seabrook
6,704
1,636
Somersworth.
Morehouse
2,700
1,575
Mound City.
Suncook
1,340
1,722
Mountaingrove.
Tilton
1,161
1,000
. Mount Vernon
Troy
1,200
3,661
Neosho
West Concord
7,176
Stewartstown 1,000
Nevada
W.
1,882
1,575
Whitetield.
New Madrid
1,241
1,300
Norborne
Wilton
1,711
1,900
Novinger
Winchester.
1,531
1,700
Odessa
Wolfeboro
2,500
2,100
Woodsville
Old Orchard
1,023
Oran
1,002
Oregon
NEW JERSEY
1,912
Of unogo.
1,114
6,000
Arlington
Osceola
10,150
1,418
Pacific
Asbury Park
46,150
2,168
Atlantic City
Palmyra
1,645
1,474
Paris
Atlantic
1,343
1,044
Pattonsburg
Audubon
;5,545
1,708
Perryville
Bayonne
8,5t)0
1,154
Piedmont
Belleville
1,433
2,043
Pierce City
Belmar
1,764
1,650
Plattsburg
Belvidere
1,991
n065
Pleasanthill
Bergenfield
0,916
Bernardsville.... 1,000
Poplarbluff
2,140
1,385
Princeton.
Beverly.
15,070
1,200
Prosperity
Bloomfield
1,125
2,755
Richhill
Bogota
4,930
3,664
Richmond
Boonton
4,250
1,053
Rockport
Bordentown.
3,970
2,261
Boundbrook.
Rolla
1,307
9,437
Bradley Beach
St. Charles.
1,967
14,209
Bridgeton
Ste. Genevieve.
1,400
8,336
Burlington
St. Francois
1,100
2,265
St. ia_omes
Butler
2,236
77,403
Caldwell
St. oseph
687,029
94,538
Camden
St. ws
2,471
1,796
Salem
Cape May
3,807
1,834
Salisbury
Carlstadt
1,311
3,500
Sarcoxie
Carteret
1,583
1,500
Savannah
Cedarville
17,822
1,874
Sedalia
Chatham
1,029
1,100
Senath
Chester
2,174
1,926
Shelbina
Clayton
3,327
3,394
Sikeston
Cliffside
3,238
8,100
Slater
Clifton
35,201
1,483
Springfield
Closter
2,121
4,795
Collingswood
Stanberry
1,122
1,000
Cranford
Sweet Springs
1,966
1,005
Delford.
Tarkio
1,613
7,468
Thayer
Dover
1,783
1,273
Tipton
Dumont
5,656
1,990
'Trenton
Duncllen
3,163
1,120
Troy
East Newark..
34,371
2,000
Orange
Unionville
East
2,417
University
East Rutherford.. 4,275
1,200
1,800
Eatontown.
Valley Park
2,655
1,595
Edgewater
Vandalia
1,598
Harbor City. 2,181
Versailles
Egg
73,409
4,689
Elizabeth
W'arrensburg.
1,167
3,670
Washington
Elmer
9,924
11,817
Englewood
Webb City
1,100
7,080
Fairhaven
Webster Groves..
2,441
7,312
Fairview.
Wellston
2,693
... 1,194
Flemington
Wellsville
1,019
1,800
Florence
Weston
4,472
2,914
Westplains
Fort Lee
1,401
FranklinFurnace. 1,800
Willowsprings
3,233
2,241
Freehold.
Windsor
10,213
1,000
Garfield
Zincite
1.118
Garwood
2,100
MONTANA
Glassboro.
3,260
Glen Ridge .
1,055
10,134
Anaconda
Glen Rock
1,158
9,462
Gloucester City.
Belt.
1,022
1,600
Bietimber.
Grantwood.
10,031
1,0013
Greenwich

1,350

Madison
4,658
Manasquan
1,582
Matawan
1,646
Maurice River
1,100
Mays Landing.
1,800
Medford...
1,200
Mendham
1,129
Merchantville... 1,996
Metuchen.
2,138
Midland Park.
2,001
Millburn
3,000
Milltown
1,584
Millville
12,451
Montclair.
21,550
Moorestown.
4,000
Morristown
12,507
Mt. Holly
4,800
Netcong
1,532
Newark
347,469
New Brunswick 23,388
New Durham .
4,100
Newton
4,467
North Paterson
1,300
North Plainfield
6,117
Nutley
6,009
Ocean City.
1,950
Ocean Grove.
3,100
Old Bridge
. 1 000
Orange
29,630
Oxford
2,600
Palisades Park
1,411
Palm yra
2,500
Park Ridge
1,401
Passaic
54,773
Paterson.
125,600
Paulsboro.
2,121
Penn Grove
2,118
Perth Amboy
32,121
Phillipsburg
13,903
Pitman
1,950
Plainfield
20,550
Pleasantville
4,390
Point Pleasant B'ch 1,003
Pompton Lakes
1,060
Port Norris
1,350
Princeton
5,136
Prospect Park
2,719
Rahway
9 337
Ramsey
1,667
Raritan
3,672
Red Bank
7,398
Ridgefield Park._ 3,000
Ridgewood.
5,416
Riverside
3,800
Riverton..
1,788
Rockaway
1,902
Roosevelt
5,786
Roselle
2,725
Roselle Park
3,138
Rumson
1,449
Rutherford.
7,045
Salem
6,614
Sayreville
5,000
Scotch Plains
1,000
Seabright
,
Secaucus.
4,740
Somerville
5,060
South Amboy
7,007
South Boundbrook 1,024
South Orange
6,014
South River.. _ 4,772
Stanhope
1,031
Summit
7,500
Sussex.
1,212
Swedesboro
1,477
Tenalls.
2,756
Toms River
2,200
Totowa.
1,130
TRENTON
96,815
Tuckerton
1,268
Union
21,023
Union
1,900
Upper Montclair. 1,100
Verona
1,675
Vineland.
5,282
Wallington.
3,448
Washington
3,567
Weehawken
11,228
Westfield
6,420
West Hoboken
35,403
West New York_ 13,560
West Orange.
10,980
Westwood
1,870
Weymouth.
1,000
Wharton.
2,983
Williamstown
1,600
Woodbine.
2,399
Woodbury
4,642
Woodridge
1,043
Woodstown
1,613
Woodbridge
4,500
NEW MEXICO
Alamogordo.
Albuquerque.
Artesia
Carlsbad.
Clovis
Deming.
.
East Las Vegas
Gallup
Hillsboro
Isleta
Laguna
Lascruces.
Las Vegas
Lincoln
Lordsburg
Melrose
Mesilla
Mora
Pinos Altos
Portales
Puerto de Luna.
Ranches of Taos
Raton
Roswell.
San Marcial
SANTA FE
Santa Rita
Santa ROS3.
Silver City
Socorro
Taos
Tome
Tucumcari
Zuni

3,600
11,020
1,883
1,736
3,255
1,864
3,755
2,204
1,000
1,000
1,000
3,836
3,179
1,100
1,000
1,000
1,300
1,400
1,100
1,292
1,100
1,400

4,539
6,172
1,000
5,072
1,900
1,000
3,217
1,560
1,400
1,000
2,526
1,300

NEW YORK
Adams
1,458
Addison
2,004
Akron
1,677
ALBANY
100,253
Albion
5,016
Alexandria Bay.
1,899
Allegany.
1,286
Amema.
1,200
Amityville
2,517
Amsterdam
31,267
Andover
1,136
Angelica
1,056
Arcade
1,294
Athens
1,956
Attica
1,869
Auburn.
34,668
Ausable Forks
2,600
Avoca
1,057
Avon.
2,053
Babylon
2,600
Bainbridge
1,159
Baldwin
3,000
Baldwinsville.
3,099
Ballston Spa.
4,138
Batavia
11,613
Bath
3,884
Bay Shore
3,400
Belmont
1,094
Binghamton
48,443
1 318
Bolivar
Boonville
1,794
Brewster.
1,296
Bridgchampton.
1,500
Brighton.
1,000
Brockport
3,579
Brockton
1,181
Bronxville
1,863
Buffalo
423,715
1,290
Caledonia
Cambridge
1,528
Camden
2,170
Canajoharie
2,273
Canandaigua
7,217
Canastaia
3,247
Canisteo
2,259
Canton
2,701
Cape Vincent.
1,155
Carthage
3,563
Castile
1,040
Castleton
1,396
Catskill..
5,296
Cattaraugus.
1,165
Cazenovia
1,861
Center Moriches
1,600
Champlain
1,280
Charlotte
1,938
1,045
Chateaugay
Chatham
2,251
1,210
Chester.,
Clayton
1,941
1,600
Clifton Sprs
1,236
Clinton
Clintondale
1,000
2,695
Clyde
Cobleskill
2,088
Coeymans
1,000
24,709
Cohoes
2,549
Cold Spring
Cooperstown
2,484
2,166
Corinth.
13,730
Corning
2,658
Cornwall
Cornwall-on-theHudson
1,400
Cortland.
11,504
Coxsackie
,
Croton-on-lludson 1,806
1,900
Crown Point
1 556
Cuba
1,146
Dannemora
3,938
Dansville
1,736
Delhi
3,921
Depew
1,864
Deposit..
1,005
Dcxter
3,455
Dobbs Ferry
Dolgeville.
2,685
1,228
Dundee.
1.7,221
Dunkirk
2,781
East Aurora
2,100
East Hampton
1,000
East Islip
2,398
East Rochester
1,200
East Rockaway
3,274
East Syracuse
2,500
Eaton
3,400
Ellenburg
3 114
Ellenville
37,176
Elmira
2,732
Elmira ligts .
2,408
Endicott
3,112
Fairport
2,141
Falconer
1,567
Farmingdale .
lAill
Fayetteville

NEW YORK Cont'd.
Fishkill Landing
Floral Park
Fonda.
Forks
Fort Edward
Fort Plain
Frankfort
..
Franklinviile....
Fredonia.
Freeport
Friendship
Fulton
Garnerville
Geneseu
Geneva
Glasco
Glen Cove
Glens Falls.
Gloversville...._
Good Ground
Goshen
Gouverneur
Gowanda
Granville
Great Neck
Greene
Green Island
Greenport
Greenwich
Groton
Hamburg
Hamilton
Ram motalspor t.

3,902
1,225
1,100
3,300
3,762
2,762
3,303
1,568
5,285
4,836
1,218
10,480
1,300
2,067
12,446
1,600
7 600
15,243
20,642
1,000
3,081
4,128
2,012
3,920
2,000
1,275
4,737
3,089
2,314
1,260
2,134
1,689
1,254

N. CAROLINA Cont'd.
Cherryville..
1,153
Clay ton....
1,441
Cliffside.......
1,000
Clinton
1,101
Concord
8,715
Cooleemee
2,000
Dallas
1,065
Davidson
1,056
Draper
1,000
Dunn ......
1,823
Durham.....
18,241
East Durham..
1,500
East Spencer
1,729
Edenton .
2,789
Elizabeth City
8,412
Enfield.......
1,167
Fayetteville
7,045
Forest City
1,592
Gastonia.
),759
Gibsonville.
1,162
Goldsboro...... 6,107
Graham.
2,504
Greensboro.. ,
15,895
Greenville
4,101
Hamlet..
2,173
Hawriver.
1,200
Henderson.
4,503
Hendersonville. , 2,818
Henrietta.••••
1,856
Hertford- •• ••
1,841
Hickory. ••••
3,716
Highpoint.• •.
9,525
Highshoals.. . 1.030
1,500
Jannes City
1,128
Kernersviffe.
Kings Alountain • 2,218
6,995
Kinston
1,007
Lagrange
2,322
Laurinburg
1,127
Leaksville
3,364
Lenoir
4,163
Lexing ton.
2,413
Lincolnton.
1,152
Little ton
1,775
Louisburg
2,230
Lumberton
1,033
Madison
1,519
Marion
1,321
Maaton
1,063
Mocksville
4,082
Monroe
3,400
Mooresville
Morehead City. - 2,039
2,/ 12
Morganton.
3,844
Mountain,
Mount Olive...
1,071
9,961
Newbern
2,316
Newton
North Charlotte
1,503
Northwilkesboro 1,932
3,018
Oxford
2,165
Plymouth.
RALEIGH,
19,218
1,022
Ramseur.
1,950
Ranclleman
1,089
Red Springs.
4,828
Reidsville
Roanoke Rapids 1,670
2,155
Rockingham.
8,051
Rock ymount..
1,425
Roxboro
1,062
Ru therford ton..
5,533
Salem
7,153
Salisbury
2,282
Sanford
1,726
Scotland Neck
1,331
Selma
3,127
Shelb y
1,347
Smithfield
1,484
Southport
1,945
Spencer.
6,000
Spray
1,246
Spring Hope
4,599
Statesville
4,129
Tarboro
Thomasville
3,
877
1,055
Troy
2,376
'Wadesboro.
1,443
Wake Fcrest.
6,211
Washington.
2,008
Waynesville
1,999
Weldon
2,000
West Durham.
1,368
Whiteville
1,500
Whitney
1,574
Williamston. .
25,748
Wilmington
6,717
Wilson
Winston Salem. 22,700

Iiancock.
1,329
Harrison.
1,500
Hastings upon
Hudson.
4,552
H.averstraw
5,669
Hempstead
4,964
7,520
Herkimer
Hicksville.
4,000
2,000
Highland
2,470
Highland Falls.
1,090
Milburn
Holley
1,679
2,695
Ilomer
1,169
lioneoye Falls.
Hoosick Falls._ 5,532
Hornell
13 617
Horseheads
1,778
Hudson.
11,417
Hud.son Falls.
5,189
Huntington
5,000
Ilion
6,588
Inwood
2,000
Irvington
2,319
Islip
2,300
Ithaca.
14,802
mestown.
31,297
ohnstown
10,447
atonah.
1,500
Keeseville.
1,835
Kenmore
1 020
Kingston
25,908
Lackawanna..
14,549
Lake Placid
. 1,682
Lancaster
4,364
Larchmont.
1,958
La Salle
1,299
Lawrence
1,189
Leroy
3,771
Lestershire
3,775
Liberty
2,072
Lindenhurst..
1,800
Little Falls.
12,273
Little Valley
1,368
Liverpool
1,388
Livingston Manor 1,000
Lockport
17,970
Lowville
2,940
Lynbrook
2,800
Lyons
.
4,460
Malone
6,467
Mamaroneck
5,699
Manhasset
1,050
Manlius
1,314
Marathon.
1,079
Masseiaa
2,951
Mattea wan
6,727
Mattituck
1,200
Mayville.
1,122
Mechanicsville
6,634
Medina.
5,683
Mexico
1,233
M iddleburg
1,114
Middleport
1,530
Middletown
15,313
Millbrook.
1,136
Milton
1,200
Mineola
1,981
NORTH DAKOTA
Mineville
2,030
Mohawk.
2,079
1,003
Beach
Monroe
1,195
5,443
BIS MARC K.
Monticello
1,941
1,331
Bottineau.
Montour Falls.... 1,208
1,332
Cando
Moravia
1,324
1,217
Carrington
Monah
1,000
1,553
Casselton
Mount Kisco
2,802
1,019
Cooperstown.
Mount Morris
2,782
5,157
Devils Lake
Mount Vernon
30,919
3,678
Dickinson.
Naples
1,093
1,389
Ellendale
Newark
6,227
1,540
Enderlin
Newark Valley
1,466
14,331
Far o
New Berlin
1 114
,229
Gra ton
Newburgh
27,805
12,478
Grand Forks
New Hartford.
1,195
1,503
Hankinson
New Hyde Park
1,000
1,443
Harvey
New iii
i
1,230
1,237
Hillsboro
New
Ile
28,867
Jamestown
4,358
Ncw Yor
••• 4,776,883
1,437
Kenmare
Nei York Mills,. 2,600
1,023
Lakota
Ni ara Falls. 7.1.30,445
1,214
Langdon.
Fo olk.
1,600
.. 1,224
Larimore
No h Pelham
1,311
1,019
Lidgerwood
2,096
,. Ihport
Lisbon
1,758
N th Tarrytown 5,421
3,873
Mandan
al th Tonawanda 11,955
1,070
.Mayville.
Northville
1,130
6,138
Minot
Norwich
7,422
1,499
Oakes
Norwood
1,993
1,008
Park River.
Nunda
1,043
Rugby.
1,630
Nyack.
4,619
4,606
Valley City
Oakfield
1,236
2,467
Wahpeton
Ogdensburg
15,933
3,124
Williston.
Olean
14,743
Oneida
8,317
OHIO
Oneon ta
9,491
Oriskany.
1,200
2,465
Ada... .
Ossining
11,480
1,543
Addyston..
Oswego
23,368
69,067
Akron
Oswego Falls
3,100
15,083
Alliance
Owego.
4,633
2,106
Amherst
Oxford
1,654
1,011
Amsterdam
Oyster Bay..... 3,800
1,187
Antwerp
Painted Post.... 1,224
Arcanum
1,361
Pal m yra
2,268
1,032
Archbold
Patchogue
3,824
6,795
Ashland
Pearl River
1,500
18,266
Ashtabula
Peekskill.
15,245
5,463
Athens
Penn Yan.
4,597
9,410
Barberton
Perry.
4,388
4,233
Barnesville
Phelps
1,034
1,354
Batavia
Philmont
1,813
Bedford....i: 1,783
12,946
Plasenix
1,642
Bellaire.
Piermont
1,380
Bellefontainc... - 8,238
5,209
Pine Plains
1,600
Bellevue
1,056
Pit tsford
1,205
Bellville
11,138
Pl,t tsburg
1,249
Belpre.
2,207
Pleasantville.
Berea..
2,609
1,085
,
Po t B yrnn
Bergnota.
12,809
Port Chester
Bethel.. ....
qie
, 31
1,600
Port Ewen
Bethesda
1,300
2,266
Port Henry
1,813
Blanchester.
2,800
Port le
Nfferson
1,953
Bluffton
9,564
5,222
Port ervis.
Bowling Gree
1,844
Port ashington 3,200
Bradford
4,036
Potsdana.
3,974
Bridgeport
Poughkeepsie... 27,936
1,700
Brooklyn
1,788
Pulaski
1,187
Brookville
1,298
Randolph
3,641
Bryan
1,300
Ravena.
1,180
Buchtel
10,711
Rensselaer
8,122
Bucyrus
Rhinebeck
1,548
3,156
Byesville.
Richfield Springs. ,503
1,971
Cadiz
Ripley
1,000
1,430
Caldwell
Riverhead
2,800
11,327
Cambridge
Rochester.
218,149
6,621
Canal Dover
Rockville Center. 3,667
50,217
Canton
Rome
/0,497
1 349
Cardington
Roosevelt
1,000
2,225
Carey
Roscoe
1,000
1,730
Carrollton..
Rosendale
1,125
3,618
Carthage
2,000
Roseton
1,059
Cedarville... ..
Roslyn
1,800
3,493
Celina
Rouses Point.
1,638
1,931
Chagrin Falls.
3,964
Rye
1,542
Chardon
3,408
Sag Harbor
1,930
Cheviot
2,536
St. Johnsville.
2,950
Chicago
1,500
St. Regis Falls.
2,950
Chicago Jc.
Salamanca
5,792
14,508
Chillicothe.
1,250
Salem
363,591
Cincinnati
4,983
Saranac Lake
6,744
Cirdeville.
Saratoga Springs. 12,693
560,663
Cleveland.
3,929
Saugerties
2,955
Cleveland Hgts
3,200
Sayville
.... 1,423
Cleves
1,000
Scarsdale
2,815
CI yde
72,826
Schenectad y.
1,759
Coalgrove.
1,614
Schuylerville.
1,111
Coalton
2,957
Scotia
1,979
College Hill
1,694
Sea Cliff.
4,850
Collinwood.
6,588
Seneca Falls.
1,582
Columbiana..
1,112
Shortsville
COLUMBUS.. 181,511
2,507
Sidney
Columbus Grose. 1,802
2,512
Silvercreek.
8,319
Conneaut
1,615
Skaneateles
1,074
Continental
1,259
Sloan.
1,564
Corning......
1,150
Sloatsburg
Coshocton
9, °3
6
1 800
So,lus
1,848
Covington.f
5,139
.
Sol va y
3,807
Crestline.
2,509
Southampton.
3,028
Crooksville.
South Glens Falls 2,247
4,020
Cuyahoga Falls
2,068
South Nyack.
116,577
Dayton.
1,600
Southold
7,327
Defiance
1,000
Spencerport
.... 1,082
Degraff
2,353
Spring Valley.
9,076
Delaware......
Springville
2,246
5,038
Delphos
1,004
Stillwater
1,689
Delta
2,663
Suffern
4,008
Dennison.....
137,249
Syracuse
1,515
Deshler.
Tarrytown
5,600
1,519
Dillonvale
Ticonderoga.
2,475
1,549
•
Dresden
Tivoli
1,034
1,109
Dunkirk
1,200
Tomkins Cove..
9,179
East Cleveland
Tonawanda
8,290
20,387
East Liverpool
76,813
Troy
East Palestine.. • 3,537
Trumansburg
1,188
East Youngstown 4,972
Tuckahoe.
2,722
3,187
Eaton
Tupper Lake.
3,067
.. 1,072
Edgerton
Tuxedo
2,000
3,423
Elmwood Place..
Unadilla
1,009
. 14,825
Elyria
Union.
1,544
Euclid.
_ .. 1,953
74,419
Utica
Fairport Harbor. 2,263
Valatie
1,219
14,853
Findlay
Valley Stream
2,800
1,285
Forest
Verplanck
1,000
Fort Recovery.. • 1,193
Walden.
4,004
9,597
Fostoria......
Walton
3,103
2,659
Franklin
Wappingers Falls 3,195
1,021
FredericktownWarrensburg.
3,100
9,939
:
.
Fremont
Warsaw
3,206
7,214
Galion
Warwick.
2,318
5,560
Gallipolis
Waterford
3,245
1,001
Garrettsville..
Wa terloo
3,931
.. 2,496
Geneva
Watertown
26,730
Georgetown..... 1,580
Waterville
1,410
Germantown..- • '
1 778
W.itervliet
15,074
1,864
Gibsonburg,..
2,817
Watkins
-: 3,736
Girard
Waverly
4,855
1,741
Glendale
1,392
Wayland
Glouster..... - • 2,527
Webster
1,032
1,394
Granville....:
Weeclsport
1,344
: 4,228
Greenfield,., ,
Wellsville
4,382
Greenville.....• 6,237
West Carthage.
1,393
1,019
Hamden
Westfield
2,985
35,279
Hamilton
West Haverstraw. 2,369
1,368
Harrison.
West Point
1,200
2,
823
Hartwell.
Whitehall
4,917
2,395
Hicksville_ ..
White Plains
15,949
Hillsboro...... 4,296
Whitesboro
2,375
1 095
..
Holgate
Williamsville.
1,105
1,699
Hubbard..
Wolcott
1,216
1,021
Hudson
-. 1,756
Worcester
1,500
Huron.
..
Yonkers
79,803
lrondale........... 1,250
Yorktown Hgts
1,250
Ironton.
.... 13,147
Jackson.. . ..... 5,468
NORTH CAROLINA
Jacksonville..... 1,285
Jamestown... .• 1,133
Albemarle
2,116
1,461
lefferson... •
Ashboro
1,865
kelleys IslaWell:: 1,017
A-heville
18,762
1.561
Kenmore
Beaufort.
2,483
4,488
Kent..
Belhaven
2,863
7,185
Kenton........
. .
Belmont
1,176
Lakewood
.. 15,181
1,529
Bessemer City
Lancaster; • • .. 13,093
Burlington
4,808
1,698
Lebanon •
•
1,393
Canton
Leetonia.
.• 1,665
1,892
Caroleen.
1,773
Leirsic. ''••••
Chadbourn.
1,242
Lima ........ 30,508
1,149
Chapelhill
IAsbon.......... 3,084
:
Charlotte
34.014
• 3,439
Lockland

t

OHIO Cont'd.
Lodi
Logan
London
Lorain.
Loudonville
Louisville
...
Loveland
Lowellville
McArthur
McComb
McConnelsville.
Madisonville. .
Manchester
Mansfield
Marblehead
Marietta.
Marion
Martins Ferry...
Marysville
Massillon
Maumee
Mechanicsburg.
Medina
Miamisburg
Middlepurt
Middle town
Milford
Millersburg

Mao

Mineral City.
Minerva
Mingo Jc
Minster

1,015
4,850
3,530
28,883
1,834
1,678
1,421
1,592
1,107
1,088
1,831
5,193
1,966
20,768
1,172
12,923
18,232
9,133
3,576
13,879
2,307
1,446
2,734
4,271
3,194
13,152
1,321
2,020
2,000
1,032
1,396
4,049

PENN. Coned.

OREGON
Albany
Ashland
Astoria
Baker City.
Bandon.
Condon.........
Coquille
Corvallis.
Cottage Grove
Dallas
Elgin.
Enterprise
Eugene
Forest Grove.
Grants Pass
Hillsboro
Hood River
Independence
Klamath Falls.
La Grande
Lakeview
Lebanon
Linnton
McMinnville.
Marshfield
Medford
Milton
Mount Tabor....
Newberg
North Bend
Ontario
Oregon City.
Oswego

4,275
5,020
9,599
6,742
1,803
1,009
1,398
4,552
1,834
2,124
1,120
1,242
9,009
1,772
3,897
2,016
2,331
1,160
2,758
4,843
1,253
1,820
1,165
2,400
2,980
8,840
1,28J
1,500
2,260
2,078
1,248
4,287
1,107

1,583
1.152
4,460
Perulle ton.
Montpelier
2,759
207,214
Portland.
Mount Gilead.
1,673
1,042
Prineville
Mount Healthy
1,799
1,359
Rainier
Mount Sterling.
1,071
4,738
Roseburg
Mount % ernon.
9,087
4,872
St. Johns
Murray
1,386
14,094
SALEM
Napoleon
4,007
1,121
Seaside
Navarre
1,021
Sheridan.
1.
357
Nelsonville
6,082
1,588
Silverton
Newark
25,404
S ingfield
1,838
New Boston.
1,858
4,880
e Dalles
New Bremen
1,352
1,586
Tillamook
Newburg
Union
1,483
813
5,
New Carlisle.... 1,058
1,616
Woodburn
New Comerstown 2,943
New Lexington . 2,559
PENNSYLVANIA
New London.... 1,557
New Philadelphia 8,542
1,534
Albion
New Richmond.
1,733
1,743
Aliquippa
2,242
New Straitsville
1,500
Allenport
Niles
8,361
Allentown
51,913
North Baltimore. 2,503
Altoona
52,127
North Lawrence. 1,200
Ambler.
/,649
North Olmsted.. 1,030
Ambridge
3,205
7 858
Norwalk
3,000
Anita
Norwood....... 16,185
3,000
Annville
Nottingham..... 2,387
Antrim
1,500
Oakharbor
1,a59
3,006
Apolla.
Oak Hill
1,148
Arcadia
1,400
Oakley
1,639
Archbald
7,194
Oberlin
4,365
Ardmore.
3,800
Orrvillc.
3,1U1
Arnold
1,818
Ottawa
Arnot
3,500
2,182
Oxford
2,017
Ashlatid
6,855
Painesvide
5,501
Ashley
5,601
Paulding.
2,081
Aspinwall
2,592
Payne
1,207
3,796
Athens
Pemberville
1,006
Atlas
1,000
Perrysburg.
1,913
Audenried
5,000
Piqua
Austin.
2,941
13,388
Plain City
1,407
Avalon
4,317
Pleasant Ridge.
1,769
Avoca
4,634
Plymouth
1,314
Avonmore
1,262
Pomeroy.
4,023
Baggaley
1,000
Port Clinton.... 3,007
Bangor
5,369
Portsmouth
23,481
Banksville
1,300
1,350
Prairie Depot.
Barnesboro
3,535
Ravenna.
5,310
Bath
1,057
Reading
3,985
Beaver
3,456
Richwood.
1,729
Beaverdale.
1,200
Ripley
1,840
Beaver Falls.
12,191
1,186
Rockford
Beaver Meadows 1,530
Rockport
3,179
Bedford
2,235
Rocky River.
1,174
Beechview
1,500
Roseville
2,113
Bellefonte.
4,145
1,000
Rossford.
Belle Vernon.
2,372
Sabina
1,514
Bellevue
6,323
5,002
St. Bernard
Bellwood
2,277
St. Clairsville... 1,393
Ben Avon
1,828
.
St. Marys.
5,732
Bennett
8,000
St. Paris
1,261
Bentleyville
1,922
Salem
8,943
Berlin
1,336
Salineville
2,403
Berwick
5,357
Sandusk y
19,989
Berwyn.
1,000
Sciotoville
1,300
12,837
Bethlehem.
Sebring
2,104
1,032
Bigrun
Sekitan
1,700
Birdsboro
2,930
Shawnee
.
2,280
Black Lick.
1,500
Shelby
4,903
Blairsville.
3,572
Shreve
1,016
5,345
Blakely.
Sidney
6,607
Blandburg
1,800
Somerset
1,286
7,413
Bloomsburg
South Charleston 1,181
2,303
Blossburg
South Newburg.. 1,273
Boswell.
1,878
Spencerville
1,748
2,433
Boyertown
Springfield.
46,921
3,134
Brackenridge..
Steubenville
21,391
19,357
Braddock
Struthers
3 370
1,000
Bradenville
Stryker
1,026
14,544
Bradford
Swanton
1,058
Bridgeport, FaySylvania
1,002
ette Co
3,400
Syracuse.
1,250
Bridgeport, MontTiffin
.. 11,894
3,860
gomery Co.
Tippecanoe City. 2,038
1,983
Bridgeville
Toledo
168,497
1,562
Bridgewater.
Toronto
4,271
9,256
Bristol
Troy
6,122
1,898
Brockwayville.
Uhrichsville
4,751
3,003
Brookville
Union City
1,595
2,000
Broughton
Upper Sandusk,. 3,779
1,500
Brownfield
Urbana
7 739
Brownstown.
1,300
Utica
1,729
Brownsville
/,324
Van Wert
Bryn MaeT
3,100
7,157
Vermilion
1,369
1,200
Bulger.
Versailles
1,580
Burgettstown. . 1,268
Wadsworth
3.073
20,728
Butler
Wapakoneta. ... 5,349
2,230
California
Warren
.. 11,081
1.514
Cambridge Sprs.
Washington
3,891
Canonsburg
Court House.
7,277
1,637
Canton
Wauseon
2,650
17,040
Carbondale
Waverly
Carlisle.. . .... _ . 10,303
1,
803
Wellington
2,131
10,009
Carnegie.
6,875
Wellston.
6,117
Carrick
Wellsville
7,769
Carrolltown..... 1,348
1,030
West Alexandria
1,000
Cart wrigh t.
West Carrollton
1,285
2,600
Castle Shannon.
Westerville.
5,250
1,903
Catasauqua
West Jefferson.
1,043
1 930
Catawissa.
West Liberty.
1,288
1,500
cecil
West Milton.
1,207
2,000
Cernenton
\Vest Toledo.
2,500
1,413
Centerville
1,080
West Union
,429
Centralia
2,072
Willoughby
11,800
Chambersburg.
Wilmingtoe
4,491
Charleroi
9,615
2,502
Woodsfield
Cherry Valley... 1,400
Wooster
6,136 -Chester.
38,537
Wyoming
1,893
1,700
Chicora.
Xenia
8,706
Clairton
3,326
Yellow Springs..
,
2,200
Claridge
Youngstown..... 79,066
Clarion
2,612
Zanesville.
28,026
Claysville
1,045
Clearfield
6,
Clifton Heigh ts
3,155
OKLAHOMA
Monroeville

Ada.
Afton
Altus.
Alva
Anadarko
Antlers
Ardmore
Atoka
Bartlesville
Blackwell.
Boley
Bristow
Broken Arnm:.
Caddo.
Capitol Hill
Chandler
Checotah
Chelsea.
Cherokee
Chickasha
Claremore
Cleveland.
Clinton
Coalgate.
Collinsville.
Comanche
Cordell
Cowete
Cushing
Davis
Dewey
Duncan
Durant
Edmond
Elk City
El Reno
Enid
Eufaula
Fairview.
Fort Gibson.
Fort Sill
Frederick
Geary.
Glenpool
Granite.
Grayson
GUTHRIE
Guymon
Haileyville
Hartshorne.
Hennessey
Henryetta
Hobart
Holdenville
Hugo
ldabel
Kiefer.
Kingfisher
Kiowa
Krebs
Lawton.
Lehigh
Lindsay
McAlesler
Madill.
Mangum
Marietta
Marlow.
Medford
Miami'
Muskogee
Newkirk
Norman
Nowata
Okemah
Oklahoma
Okmulgee
Pauls Valley....
Pawhuska
Pawnee.
Perry
Ponca
Pondcreek
Poteau
Prague
Pryor
Purcell
Roff
Ryan
Sallisaw
Sapulpa
Sayre
Shattuck
Shawnee
Snyder
Spiro
Stigler.
Stillwater
Stillwell
Stroud
Sulphur
Tahlequah
Tecumseh
Thomas
Tishomingo
Tonkawa
Tulsa
Vinita
Wagoner
Walter
Watonga
Waurika
Waynoka
Weatherford
Weleetka
Weturnka
Wewoka
Wilburton
Woodward
Wynnewood.
Yukon

4,349
1 279
4,821
3,688
3,439
1,273
8,618
1,968
6,181
3,266
1,334
1,667
1,576
1,143
1,500
2,024
1,683
1,350
2,016
10,320
2,866
1,310
2,781
3,255
1,324
1,301
1,950
1,187
1,072
1,416
1,344
2,477
5,330
2,090
3,165
7,872
13,799
1,307
2,020
1,344
2,500
3,027
1,452
1,500
1,229
1,000
11,654
1,342
2,024
2,963
1,665
1,671
3,845
2,296
4,582
1,493
1,197
2,538
1,021
2,884
7,788
1,880
1,156
12,954
1,564
3,667
1,546
1,965
1,110
2,907
25,278
1,992
3,724
3,672
1,389
64,205
4,176
2,689
2,776
2,161
3,133
2,521
1,113
1,830
1,025
1,798
2,740
1,044
1,207
2,479
8,283
1,881
1,231
12,474
1,122
1,173
1,583
3,444
1,039
1.22U
3,684
2,891
1,626
1,371
1,408
1,77o
18,182
4,082
4,018
1,377
1,723
2,923
1,160
2,118
1.229
1 190
1,022
2 277
2,696
'.002
1,U18

Clymer
CoalcIale..

Coatesville
Cokeburg
College Hill
Collingdale. ....
Colona
Columbia
Colwyn.
Conemaugh
.
Connellsville....
Conshohocken
Conway
Coplay
Coraopolis
Corry
Coudersport..
Crafton.
Cresson.
Cressona.
Curwensville.
Dale, Berks Co..
Dale, Cambria
Co
Dallasibwn
Danielsville.•
Danville
Darby.
Darragh
Denver
Derry
Dickson City....
Dixmont.
Donaldson
Donora
Dormont
Dorrance ton.
Downingtown
Doylestown
Dravosburg
Drifton
Dubois.
Dunbar.
Duncannon
Duncansville.
Dunlo
Dunmore
Duquesne
Duryea
East Altoona.
East Bangor.
East Brady
East Conemaugh
East Downingtown
East Greensburg.
East Greenville..
East McKeesport
East Mauch
Chunk
Easton
East Pittsburg..
East Stroudsburg
East Vandergrift.
East Washington
Ebensburg
Edd ystone.
Edgewood
Edgeworth
Edwardsville.
Egypt
Eldred
Elizabeth
Elizabe th town.
Elizabethville.
Elkland
Elk Lick
Elliott.
Ellsworth
Ellwood City.
Elmora
Emaus.
Emlenton
Emporium
Emsworth
Ephrata
Eric.
Ernest.
Etna
Evansburg
Evans City
Everett.
Everson
Excelsior
Exeter.
Exeter Borough.
Expedit
Export
Fairchance
Falls Creek
Fayette City.
Federal.
Fleetwood
Flemington
Ford City
Forest City.
Fort yfort
Fountain Hill
Frackville
Franklin, Cambria Co
Franklin, Venango Co.... ...
Fredericktowm..
Freedom.
Freeland.
Freeport
Gaines
Galeton
Gallitzin
Gettysburg
Gilberto
Gillespie.

1,753
5,154

11,084
1,302
1,787
,
1,000
11,454
1,584
3,500
12,845
7,480
1,483
2,670
5,252
5,991
3,100
4,583
1,470
1,837
2,549
1,000
2,285
1,884
1,000
7,517
6,305
1,500
1,000
2,954
9,331
1,200
1,100
8,174
1,115
4,046
3,326
3,304
1,895
2,500
12,623
1,970
1,474
1,263
2,500
17,615
15,727
i ,487
1,200
1,186
1,493
5,046
2,000
1,500
1,23a
2,118
3,548
28,523
5,615
3,330
1,852
1,300
1,978
1,167
2,596
1,229
8,407
1,000
1,235
2,311
2,587
1,039
1,175
1,200
4,200
2,084
3,902
1,000
3,501
1,110
2,916
1,510
3,192
66,525
1,000
5,830
1,339
1,600
1,725
1,759
1,650
3,537
2,000
1,500
3,000
1,760
1,204
2,005
1,000
1,394
1,022
4,850
5,749
2,353
1,388
3,118
2,102
9,767
1,000
3,060
6,197
2,248
1,000
4,027
3,504
4,030
5,401

1,000

Girard
Giraxdville
Gladwyne.
Glassmere
Glassport
Glen Campbell..
Glen!yon
Glen Olden
Glen Rock
Glenside
Gordon
Grassfla t
Greencastle
Greensburg.
Green Tree
Greenville
Grove City
Hallstead.
Hamburg.
Hanover
HARRISBURG.
Hastings
Hawley
Hays
Hazeldell
Hazelhurst
Hazleton
Heidelburg
Heilwood
High Spire
Hollidaysburg.
Homestead.
Honesdale
Horatio

1,165
4,396
1,000
1,200
5,540
1,099
3,500
1,157
1,263
1,500
1,185
1,000
1,919
13,012
1,143
5,909
3,674
1,538
2,301
7,057
64 186
2,125
2,018
1,888
1,168
1,000
25,452
1,848
1,000
1,669
3,734
18,713
2,945
1.200

Houtzdale
Hudson.
Hughestown.
Hughesville
Hummelstown.
Huntingdon.
Hvndman
Indiana
Ingram
Irwin.
eanesville
eannette
enkintown.
ermyn
erome
ersey Shore.
essup
ohnsonburg
Johnstown
ic,sephine
c
uniata
ane.
Kaylor
Koster Works.
Kelayres.
Kennett Square.
Kingston
Kittanning
Knoxville
Kutztown
LaBelle.
Lakemont
Lancaster
Lansdale.
Lansdowne
Lansford.
La rimer
Lark_sville.
Latrobe
Lattimer Mines..
Lebanon
Leechburg
Leetsdale
Lehighton
Leisenring
Lemont Furnace'
Lemoyne
Lewisburg
Lewistown
Ligonier
Lilly
Lincoln Place...
Lindsey
...
Lititz
Littlestown
Lock Haven..
Locustdale
Locustgap
Lopez
Lost Creek.
Louperex
Loyals n.
Luzera
Lykens
Lyndora
McAdoo
McDonald
McKeesport..
McKees Rocks
McSherrystown.
Macdonalciton.
Madera
Mahanoy City.
Mahonoy Plane.
Maltby
Malvern
Mammoth
Manheim
Manor
Mansfield
Marcus Hook..
Marianna
Marienville
Marietta
Marion Hgts
Mars
Marsteller
Marysville
Matamoras
Mauch Chunk.
Mayfield.
Meadville
Mechanicsburg
Media
Mercer
Mercersburg.
Me yersdale
Middleport
Middletown
Midland
Mifflin
.
Mifllinburg. ..
Millersburg
Millersville.
Millhall
Millsboro
Millvale
Milroy
Milton
Miners Mills
Minersville.
Minooka.
Mohnton
Monaca
Monessen . .....
Monongahela ..
Montgomer y ..
.
Montoursville...
Montrose
Moon Run
Moores
Moosic
Morann.
Morgan
Morganza

1,434
2,000
2,024
1,650
2,128
6,861
1,164
5,749
2,037
2,886
1,300
8,077
2,968
3,158
1,000
5,381
1,300
4,334
55,482
4,850
a,285
6,626
1,000
1,200
1,500
2,049
6,449
4,311
3,651
2,360
1,000
1,200
47,227
3,551
4,066
8,321
1,700
9,288
8,777
1,500
19,240
3,624
1,904
5,316
1,050
1,100
1,393
3,081
8,166
1,575
1,638
1,000
2,500
,
1,347
7,772
1,000
1,700
1,400
1,500
1,000
1,050
5,426
2,943
3,000
3,389
2,543
42,694
14,702
1,724
1,000
1,200
15,936
2,000
2,700
1,125
1,030
2,202
1,039
1,645
1,573
1,363
1,300
2,079
1,362
1,215
1,000
1,693
1,388
3,952
3,662
12,780
4,469
3,562
2,026
1,410
3,741
1,100
5,374
1,244
1,050
1,559
2,394
2,000
1,043
1,000
7,861
1,500
7,460
3,159
7,240
3,000
1,536
3,376
11,775
7,598
1,490
1,904
1,914
1,200
1,800
3,964
1,000
3,000
1,000

Morris Run .
.
Mini isv ale... ..
.

.
2,002

1

Morton....
1,071
1,200
Mountaintop.
Mount Braddock 1,000
Mount Carmel
17,532
Mount Holly
Springs.
1,272
1,771
Mount Jewett.
Mount Joy. .... 2,166
4,241
Mount Oliver.
5,812
Mount Pleasant
3,338
Mount Union
1,904
Muncy
5,185
Munhall
3,800
Myerstown
18,877
Nanticoke
1,000
Nanty Glo
1,790
Narberth
4,000
Natrona
3,978
Nazareth
1,578
Nescopeck
Nesquehoning .. 2,500
Bethlehem.. 1,625
New
New Bloomfield.. 1,000
8,329
New Brighton
36,280
Newcastle
1,000
Newcomer
New Cumberland 1,472
2,600
Newhaven
1,106
New Holland.
1,083
New Hope
7,707
New Kensington
Philadelphia 2,512
New
2 009
Newport.
1,675
Newtown
1,449
Newville
1,000
Noblestown
27,875
Norristown
8,729
Northampton
Northampton
1,037
Heights
North Belle Ver1,522
non
North Braddock. 11,824
North Catasauqua 2,030
1 008
North Charleroi
2,672
North East
Northumberland. 3,517
1,710
North Wales
1,907
North York
1,663
Norwood
Norwood Station 1,400
1,353
Oakdale
3,436
Oakmont
15,657
Oil City
11,324
Oldforge
1,000
Oliver
8,505
Olyphant
1,200
Oneida
1,600
Orient
1,801
Orwigsburg
2,43 7
Osceola Mills.
2,390
Oxford
1,000
Palmerton
2,000
Palm yra
1,873
Palo Alto
Parkers Landing. 1,244
2,522
Parkesburg.
2,578
Parnassus
4,338
Parsons
3,907
Patton
4,200
Peckville
1,000
Peely.
3,967
Pen Argyl
1,462
Penbrook
1,048
Penn
1,141
Pennsburg
1,500
Penns Station.
2,779
Perkasie
Philadelphia. .1,549,008
3,585
Philipsburg
10,743
Phoenixville.
1,352
Pinegrove.
4,975
Pitcairn
1,500
Pittock
533,905
Pittsburg
16,267
Pittston
2,000
Plains
16,996
PI ymou th
1,389
Point Marion
2,066
Polk
2,954
Portage
,9"2
Port Allegany
2,678
Port Carbon
1,000
Port Kennedy
1,300
Port Perry
1,978
Portvue
15,599
Pottstown
20,236
Pottsville
1,000
Pricedale
1,655
Prospect Park..
9,058
Punxsutawney.
3,801
Quakertown
3,000
Radnor
1,045
Ramey
6,042
Rankin Station
1,000
Rathmel.
96,071
Reading
2,092
Redlion
4,611
Renovo.
1,000
Republic.
3,189
Revnoldsville
1.000
Richland Center
5,408
Ridgway
1,761
Ridley Park.
1.903
Roaring Spring
5,903
Rochester
Rockdale
1.500
Rockwood
1,300
Ronco
1,000
1,450
ROSO3C

PENN. Cont'd
1,000
Rose Bud
1,000
Rosemont.
Rossiter
3,000
Roulette
1,500
1,000
Roxbury
Royalton
1.033
3,073
Royersford.
1,300
Sabula
Sagamore
2,100
St. Clair, Allegheny Co..... 5,640
St. Clair, Schuyl6,455
kill Co
St. Marys..
6,346
St. Nicholas..... 1,200
Saltsburg
1,044
1,150
Sarver
Saxton
1,195
6,426
Sayre
1,424
Scalp Level
Schuylkill Haven 4,747
5,456
Scottdale
Scranton
129,867
1,473
Selinsgrove.
Sellersville
1,572
4,479
Sewickley
1,600
Shaft.
19,588
Shamokin
Sharon
15,270
1,401
Sharon Hill
Sharpsburg
8 153
Sharpsville
3,634
1,900
Sheffield
25,774
Shenandoah
1,000
Shepptou
Sheridan
1,000
3,000
Sheridanville.
1,917
Shickshinny
,42
Shillington
1,598
Shinglehouse.
3,457
Shippensburg.
2 800
Siegfried
1,200
Silverbrook
1,700
Silver Creek.
2,200
Simpson
1,616
Siverly
4,454
Slatington
1,817
Smethport
1,000
Smock.
2,612
Somerset
1,875
Souderton
1,814
South Allentown
South Bethlehem 19,973
South Brownsville 3,943
South Canonsburg 1,697
4,592
Southfork
South Greensburg 1,748
South Sharon... 10,190
1,084
South Waverly
1,50U
Southwest
Southwest Greens
2,127
burg
South Williams3,734
port.
2,700
Spangler
2,880
Spring City
1 999
Springdale
1,500
Springforge
1,100
Spring Garden.
1,152
Spring Grove.
3,000
Starjunction.
1,425
State College.
14,246
Steelton
1,074
Stoneboro
4,379
Stroudsburg..
1,200
Sturgeon
2,439
Sugar Notch.
4,209
Summithill.
13,770
Sunbury
3,47,
3
Susquehanna
1,899
Swarthmore
7,381
Swissvale
2,850
Swoyers.
Swoyersville..... 5,396
1 500
Sygan
Sykesville.
1,756
9,462
Ta maqua
7,414
Tarenturn
9,060
Taylor
5,133
Throop
1,324
Tidioute
8,533
Titusville
4,281
Towanda
2,325
Tower City
1,959
Trafford.
1,200
Traugcr
2,067
Tremont.
2,500
Treveskyn
2,000
Trevorton
'Troy
1,288
Tunkhannock.
1,598
Turtle Creek.... 4,995
Tyler.
1,500
7,176
Tyrone
Uledi.
1,500
3,684
Union City.
Uniontown.
13,344
2,221
Upland
1,198
Vanderbilt
Vandergrift
3,876
Va.ndergrift
IIeights
3,438
2,849
Verona
1,487
Versailles
1,410
Vintonclale
1,962
Wall
1,039
Walnutport
Walston
2,000
Wanamie
1,500
Warren
11,080
1,000
Warrendale
1,251
Warrior Run,.
18,778
Washington.
Watsontown.
1,950
3,000
Wayne
Waynesboro. . .. 7,199
a.Waynesburg. .. 3,545
2,501 Weatherly
1,000'
Webster
3,183
Wellsboro
Wendel
1,000
West Beryi,ls.
5,512
West Bethlehem. 4,400
West Bridgewater 1,500
West Brownsville 2,036
West Chester.... 11,767
West Con.shohoc
ken
2,202
\Vest Easton.... 1,033
West Fairview. . 1,300
Westfield
1,207
Westgrove
1,261
4,715
West Hazleton.
West Homestead 3,009
West Leisenring. 1,200
West Liberty. . 2,000
West Middlesex. 1,157
Westmont
1,468
West Newton
2,880
West Pittsburg
1,000
West Pi i tston..
6,848
West Reading
2,064
West View
1,626
West Washington 3,400
West Wyoming.. 1,621
West Yora
2,435
Whitaker
1,547
Whitehaven
1,438
White Mills.
2,203
Wickboro
Wiconisw
Wilburton
'IN ilcox

2,775

3,033
1 200

1,300
Wilkes Barre.. . 67,105
18,924
Wilkinsburg.
1,100
William Penn.
1,523
Williamsburg.
31,860
Williamsport.
Williamstown... 2,904
6,133
Wilmerding
1,108
Wilson
3,000
Winburne. .
8 013
Windber
5,280
Winton
1,301
Womelsdorf
1,200
Woodland
1,396
Vs'oodlawn
2,051
Wrightsville
3 010
Wyoming
2,000
Ya tesboro
44,750
York
1,406
Youngsville
1,881
Youngwood
1,000
Yukon
Zelienc,ple..
388
1,
RHODE ISLAND
Anthony
1,500
Apjxmang
1,300
3,100
Arctic
1,200
Ashaway
1,40J
Ashton
Block Island.... 1,200
8,450
Bristol
1,250
Centerdale
2,800
Centerville.
22,754
Central Falls.
1,200
Chepachet
21,171
Cranston
1,800
Crompton
3,420
East Greenwic h.
East Providence. 13,500
1,000
Georgiaville
2,200
Harrisville
1,200
Hills Grove
1,250
Hope.
Jamestown
1,175
Lonsdale
1,903
Manville
2,100
Middletown.
1.
600
Narragansett Pier 1,250
.3,030
Natick
27,149
Newport
1,050
North Scituate
1,650
North Tiverton.
3 000
Pascoag
51.622
Pawtucket
1,550
Peace Dale
2,400
Phenix
1,900
Pontiac.
2 400
Portsmouth
PROVIDENCE. 224,326
3,500
River Point
2,000
Riverside
1,850
Slatersville
1,950
Tiverton
2,400
Valley k alls
2,750
Wakefield
6,450
Warren
8,100
Westerl y
1,050
Wickford
38,125
Woonsocket
SOUTH CAROLINA
4,459
Abbeville
Aiken
3,911
1,453
Allendale
9,654
Anderson
1,937
Bamberg
1,324
Barnwell
1,995
Batesburg
2,486
Beaufort
1,652
Belton.
Bennettsville.... 2,646
1,659
Bishopville.
1,119
Blacksburg
Blackville
1,278
1,471
Branc hville
3,569
Camden
Charleston
833
58,
2,873
Cheraw.
4,754
Chester.
Clifton
1,700
3,272
Clinton
1,207
Clover.
COLUMBIA. .. 26,319
Converse
1,00
0
1,228
Conway
Cowpens
1,101
Darlington.
3,789
1,075
Denmark
Dillon
1,
757
2,983
Easley.
1,234
Eau Claire
Edgefield.
1,771
Enoree
1,0
00
7.057
Florence
1,616
Fort Mill
4.767
Gaffney
Georgetown
5.530
2,500
Graniteville
15,741
Greenville
Greenwood.
6,614
Greer
1,673
2,365
Hartsville.
1,763
Honeapath.
1,000
Johns Island
1.372
Kingstree
Lake City
1,074

TEXAS Coned.

SO.CAROLINA Coned.
Lancaster
Langley
Latta.
Laurens
Libert y
Lockhart
.McColl
Manning
Marion
Megget t
.Nloultrieville
Mount Pleasant
Mullins.
Navy Yard
Newberry.
North Augusta.
Orangeburg
Pelzer
Piedmoat
laockhill
St. Matthews
Seneca
Spartanburg
Summerville
Sumter
Timmonsville
Union
Walhalla
Walterboro
‘Vestrninster
Whitmire
Williamston

2,098
1,000
1,358
4,818
1,058
2,000
1,628
1,854
3,844
1,000
1,011
1,346
1,832
1,000
5,028
1,136
5 906
6,000
4,U00
7,216
1,377
1,313
17,517
2,355
8,109
1,708
5,623
1,595
1,677
1,576
1,045

Winnsboro
Woodrun

1,957
1,754
1,880

Y ork vale

2,326

SOUTH DAKOTA
Aberdeen
Bellefourche
13eresford
Brookings.
Canton
Chamberlain
Clark
Dallas
Deadwood
Dell kamia .
Desmet...
Elkpoint.
Flandreau.
Gregory
Groton
Highmore.
Hot Springs
Howard
Huron.
Lake Preston
Lead
Lemmon.
Madison
Milbank
Miller
Mitchell
Nlobridge
Parker
PIERRE
Platte
Rapid City.
Redfield
Salem
Scotland
Sioux kilns.
Sisseton
Spearfish
Sturgis
Tyndall
Vermilion
Watertown.
Webster
Wessington
Woonsocket
Yankton

10,753
1,352
1,117
2,971
2,103
1,275
1,220
1,277
3,653
1,367
1,063
1,200
1,484
1,142
1,108
1,084
2,140
1,026
5,791
1,007
8,392
1,255
3,137
2,015
1,202
6,515
1,200
1,224
3,656
1,115
3,854
3,060
1,097
1,102
14,094
1,397
1,130
1,739
1,107
2,187
7,010
1,713
1,093
1,027
3,787

TENNESSEE
2,264
1,000
1,673
1,070
1,400
7,148
2,882
1,097
44,604
8,548
5,549
1,090
1,102
5,754
1,848
1,500
2,990
1,991
1,022
1,850
1,500
1,166
1,166
4,149
5,000
2,478
1,149
1,685
3,439
2,924
2,399
1,000
1,920
1,516
3,061
1,000
1,087
3,446
1,112
15,779
1,000
1,328
lerson City.
a
1,862
alio)
8,502
Johnson City.
36,346
Knoxville.
2,816
Lafollet te
1,687
LawTenueburg.
3,659
Lebanon
3 392
Lenoir City
1,830
Lewisburg
1,497
Lexington.
1,421
Livingston
2,391
Lonsdale.
1,322
McKenaie.
2,299
McMinnville.
2,228
Martin
2,381
Maryville
131,105
Memphis
1,605
Milan.
1,107
Monterey
4,007
Morristown
1,436
Mountain View
1,973
Mountpleasant
4,67,
Murfreesboro.. _
110,364
NASHVILLE
1,602
Newbern
Newport.
2,003
1,293
Obion
1,000
Orchard Knob
Paris
3,881
Park
5,126
Petros
1,000
Pulaski.
2,928
Ridgedale.
1,500
Athens.
Avondale
Binghamton..
Bolivar
Briceville
Bristol
Brownsvilla
Centerville.
Chattanooga...
Clarksville
Cleveland.
Clinton
Coal Creek.
Columbia
Cookeville
Copper Iii.1
Covington
Dayton.
Decherd
Dickson
Ducktoen
Dunlap
Dyer
Dyersburg
East Chattanooga
Elizabethton.
Erwin
Etowah.
.
Fayetteville
Franklin
Gallatin
Goocllettsviae.
Greeneville
Greenfield.
Harriman
Hartsville.
Henderson
Humboldt
Huntingdon
Jackson

Ripley.
Rockwood
Rogersville

St. Elmo.
Savannah
Shelbyville
Soddy
Somerville
South Fulton.
South Pittsburg.
Sparta.
Spring City
Springfield
Sweetwater
Tracy City.
Trenton
Tullahoma
Union City
Whitwell
Wind'sten

2,011
3,660
1,242
2,426

2,100
2,869
1,200
1,387
1,391
2,106
1,409
1,039
2,085
1,850
3,100
2,402
3,049
4,389
3,000
1,351

TEXAS
Abilene
.
Alba
Albany.... .
Alice.
Alpine.
Alvarado
Alvin..
Alvord
.
Amarillo
Angle ton
Anson
Aransas Pass
Arlington
Athens
Atlanta.
AUSTIN
Baird
Ballinger
Bartlett
Bastrop
Bay City
Beaumont
Beeville
Bellville
Belton.
Big Sandy
Big Spring
Bonham
Bowie..
Brackettville....
Brady
Brec kenridge.
Bremond
Brenham.
Bridgeport
Bronson
Brownsville
Brownwood
Bryan
Burkburnett...
Caldwell.
Call
Calvert
Cameron
Canadian
Canyon
Caro
Carthage
Center
Chico
Childress
Chillicothe
cis
Claco• don
ren
Clarksville
Cleburne
Cleveland
Clifton
Coleman
Colorado
Columbus
Comanc he
Commerce
Conroe
Cooper
Corpus Christi .
Corsicana
Cotulla
Crockett
Crowell.
Cuero
Cushing
Daingerfield
Dalhart
Dallas
Decatur
DeKalb
De Leon
Del Rio
Denison
Denton
Detroit
Devine
Dublin
Eagle Lake
Eagle Pass
Edna
El Campo
Elgin.
El Paso.
Ennis
Falfurrias
Farmersville....
Ferric
Floresville
Forney
Fort Worth

9,204
1,11)0
2,000
2,136
1,500
1,155
1,453
2,000
9,957
1,500
1,842
1,197
1,794
2,261
1,604
29,860
1,710
3,536
1,815
1,707
3,156
20,640
3,269
1,500
4,164
1,200
4,102
4,844
2,874
2,100
2,669
1,000
1,000
4,718
2,000
1,000
10,517
6,967
4,132
1,500
1,476
1,000
2,579
3,263
1,648
1,400
1,250
2,250
1,684
1,200
3,818
1,207
2,410
1,946
2,065
10,364
1,000
1,137
3,046
1,840
2,500
2,756
2,818
1,374
1,513
8,222
9,749
1,880
3,947
1,341
3,109
1,900
1,000
2,580
92,104
1,651
1,000
1,015
7,200
13,632
4,732
2,000
1,042
2,551
1,717
3,536
1,700
1,778
1,707
39,279
5.669
1.400
1,848
1,233
1,398
1.114
73,312

Franklin. • •• •
Fredericksburg• •
Gainesville. • - • •
Galveston...• • - •
Gatesville- •• • - •
Georgetown.•• - •
Giddings...•• •
Gilmer.....•• ••
Glen Rose. ••• ••
Goldthwaitee • ••
.
••• •
Wald.
Gonzales •••••
......••••
Goree
Graham.......•
Granbury...••• Grand Saline.• • Grand Niew... - Granger. • • • •• Grayburis. - •• •
Greenville. - - Groesbeck. - - •
Groveton..
Guffey.....• •• •
Hallettsville..•- Hamilton...••- Hamlin.....• - •
Harlingen...••••
...
Haskell
.• ••
Hearne
Hempstead • Henderson
Henrietta.
Hereford..
Hico

1,200
2,000
7,624
36,981
1,929
3,096
2,00o
1,484
2,00()
1,129
2,100
3,139
1,000
1,569
1,336
1,065
1,018
1,708
1, 00
0
8,850
1,454
4,600
1,
000
1,379
1,548
1,978
1,000
2,436
2,352
2,600
3,200
2,104
1,750

I . 1.437

Higgins.
'. 1,200
6,115
Hillsboro.
Hondo
2,500
2,300
Honey Grove.
Houston
. 78,800
Houston Hgts. . 6,984
Hubbard
1,843
Humble
.. 2,300
Huntsville. ... 2,072
Italy
... 1,149
Itasca.
... 1,356
Jaclesboro.
,. 1,480
Jacksonville..... 2,875
ief
c ferson.
i
2,515
ohnson City.. . 1,000
rnes City.. .. 1,150
Kaufman. ... 1,950
Keltys.
.. 1,000
Kemp
... 1,500
Kenedy.
... 1,147
Kenneth.
... 1,000
Kerrville........ 1,843
1,265
Killeen.
Kingsville.
1,500
Kirbyville.
2,100
Knox City. .
1,200
1,293
Ladonia
..
La Grange
...
. 1,850
Lamesa.
_. 1,000
2 11,
Lampasas.
1,115
Lancaster
Laredo
.. 14,855
Lexington
1 600
1,700
Livingston
Llano
1,687
Lockhart.
2,945
Longview
5,155
Lott
1,021
Lubbock
1,938
Lufkin
... 2,749
Luling.
... 1,404
1,194
Lyra
McGregor.
1,864
4,714
McKinney
1,700
Mabank
Madisonville.... 1,600
Marble Falls.... 1,061
Marion
1,200
3,878
Marlin
11,452
Marshall
2,939
Mart
1,200
Mason
1,936
Memphi
1,209
Mercedes
2,008
Merkel
2,694
Alexia
2,192
Midland
1,302
Miles.
1,706
Mineola
1,000
Alinera
3,950
Mineral Wells .
1,000
Mingus
Mount Pleasant. 3,137
Vernon.. 1,600
Mount
Nacogdoches. . 3,369
1,178
Naples
3,284
Navasota
2,100
New Boston.
3,165
New Braunfels.
1,200
Newton
1,000
Nixon
Nocona
338
1,
North Fort
Worth.
3,000
Odessa.
1,000
1,095
Olney
1,200
Omaha
5,527
Orange
Ozona
1,200
Paducah
1,350
Pala.cios
1,389
Palestine
.. 10,482
11,269
Pans
.. 1,799
Pearsall
1,856
Pecos
1,371
Pilot Point.
Pittsbura...
1,916
Plainview
2,829
Plano
1,258
7,663
Port Arthur
1,699
Port Lavaca.
3,127
Quanah
Ranger
1,000
Richmond
1,371
2,300
Rio Grande
1,800
Robert Lee
Rockdale
2,073
Rockport
1,382
Rockwall
1.136
1,275
Rogers
1,472
Rosebud
Rosenberg
1,198
Rotan
1,126
1,210
Royse City
1,200
Runge.
1,558
Rusk..
1,640
Sabinal
10,321
San Angelo
96,614
San Antonio
1,204
San Augustine.
1,000
San Benito
2,500
Diego
San
4,071
San Marcos
1,500
San Saba
1,453
Santa Anna
1,000
Saratoga.
Schulenburg.. .. 1,091
•Sealy.
1,700
Seguin.
3,116
Seymour
2,029
1,000
Shafter.
Sherman.
12,412
Shiner
1,096
Sinton.
1,500
Skidmore
1,000
Smiley
1,000
Smit''vq:c.
,
2 i7
`,If _
Snyder
.
Socorro.
Somerville_ ..

Sourlake
Stamford
Stanton
Stephenville.
Stockdale
Strawn
Sulphur Spasms
Sweet Water
Talpa
Taylor
Teague
Temple.
Terrell
Texarkana
.
Thurber
Timpson.
'flogs
To yall.
Troup
Tulia
'Tyler.
Uvalde
Van Alstyne.
Velasco
Vernon
Victoria
Waco
Waelder
Walnut Springs
Waxahachie
Weatherford...
West
Wharton.
Whitesboro
Whitewright.
Wichita Falls.
Willis. Wills Point.
Winnsboro
Winters....
Wolfe Cit y.
Yoakum
Yorktown
Ysleta

.
1.147
2,500
6,00.)

3,902
1,400
2,561
1,250
1,000
5,151
4,176
1,200
5,314
3,288
10,993
7,050
9,790
4,500
1,528
1,600
1,J52
1,126
1,216
10,430
3,998
1,441
1,500
3,195
3,673
26,425
1,400
1,340
6,205
5,074
1,645
1,505
1,219
1,563
8,200
1,500
1,398
1,741
1,347
1,402
4,657
1,180
2,000

UTAH
American Fork.
Beaver
Bingham Canyon
Bountiful
Brigham.
Castlegate
Cedar City
Draper
Ephraim.
Eureka
Fairview
Farmington
Fillmore
....
Forest Dale
Grantsville.
Heber
Hooper
Hyrum .
Lehi
Logan
Manti
Mercur.
....
Midvale
Milford.
Mill Creek
Miller
Monroe.
..
Moroni
....
Mount Pleasant.
Murray .......
Nephi
....
North Ogden
Ogden..........
Panguitch
Park City. ..
Parowan........
Payson.........
Plain City.
.
Pleasant Grove..
Price
Providence.
Provo
.. .
.
Richfield. ... _
Richmond... .. ..
St. George__
Salina
.. .
SALT LAKE •
CITY...... .
Sandy
.......
Smithfield.... .
Spanish Fork...
.
Spring City...•..
Springville_ _
Sugarhouse.
Tooele... ..
Wellsville ....
Woods Cross_

2,797
1,899
2,881
1,677
685
3,
1,500
1,705
1,000
2,296
3,416
1,218
1,231
1,202
1,549
1,154
2,031
1,300
1,833
2,964
7,522
2,423
1,047
1,760
1,014
2.300
1 200
1,227
1,223
2.280
4,057
2,759
1,000
25,580
1,338
3,439
1,156
2,397
1,000
1,618
1,021
1,020
8,925
2,559
1,562
1,769
1,082
92,777
1,031
1,865
3,4M
1,100
3,356
1,500
2,753
1,195
1,003

VERMONT
10,734
Barre
,
Barton .
•
1,330
Bellows Falls • • 4,883
Bennington • • 6,211
Bethel.
••
1.50
°
Brandon....• •• • 1,608
6,517
Brat tleboro.:.•
Bristol . ....... 1,180
20,468
Burlington
1,000
Castleton.

VERMONT Cont'd.
Charlot te
East Fairtield..
Enosburg Falls.
Essex Jc.
Fairhaven.
Hardwick
Island Pond.
Jericho
Ludlow
Lyndonville
Middlebury
MONTPELlEla
Morrisville
.
Newport.
Northtiela
Norwich
Orleans
Pittsford
Poultnec
Proc tor
Randolali
Richford.
.
Rochester
Rutland
St. Albans
St. Johnsbury.
Saxtons River.
Shelburne
Sheldon.
South Royalton
South Shaftsbury
Springfield
Swanton

1,000
1,000
1,153
1,245
2,554
2,094
1,573
1,000
1,621
1,573
1,866
7,856
1,445
2,548
1,918
1,000
1,131
1,200
1,474
2,756
1,787
1,948
1,000
13,546
6,381
6,693
1,000
1,000
1,000
1,100
1,500
3,250

Vergennes

1,236
1 483

Wallingford
Waterbury
West Derby. ..
West Rutland...
White River Jc..
Windsor
Winooski
Woodstock

1,100
1,377
1,109
2,000
2,500
1,906
4,520
1,383

VIRGINIA
Abingdon
I 757
15,329
Alexandria
1,000
Alfredton
1,090
Appalachia.
1 000
Arlington
1,324
Ashland
Hgts.... 1,388
Barton
1,632
Basic City
2,508
Bedford City...
5,700
Berkley
2,590
Bigstone Gap
Blackstone
.. 1,486
6,247
Bristol
3,245
Buenavista
1,948
Cape Charles.
Charlottesville. . 6,765
1,662
Chase City.
Chatham
1,113
1,419
Chincoteague Is
1,568
Christiansburg
1,000
Churchland
5,748
Clifton Forge..
4,234
Covington
1,802
Crewe.
1,795
Culpeper
1,299
Damascus
19,020
Danville
1,653
Dendron
East Falls Church 1,000
East Radford.... 2,100
2,018
Emporia
1,200
Ettricks
Falls Church.... 1,128
2,971
Farmville
1,000
Fort Myer
1,804
Fortress Monroe
2,271
Franklin
5,874
Fredericksburg.
1,775
Fries
Front Royal..... 1,133
1,917
Graham
5,505
Hampton
4,879
Harrisonburg
Highland Park.. 1,817
Hot Springs..... 1,000
1,000
Irvington
3,000
Lamberts Point.
Lawrenceville... 1,733
1,597
Leesburg
2,931
Lexington.
1,000
Lowmoor
1,218
Luray
29,494
Lynchburg.
Manassas
1 217
2,727
Marion
Martinsville..... 3,368
National Soldiers
3,800
Home
Newport News. 20,205
67,452
Norfolk.
1,866
Norton
1,001
Onancock
24,127
Petersburg
2,394
Phoebus
1,500
Pinners.
, 52
Pocahontas
1,200
Port Norfolk.
33,190
Portsmouth
4,807
Pulaski
4,202
Radford
RICHMOND... 127,628
34,874
Roanoke.
Rural Retreat... 1,000
3,849
Salem
1,628
Saltville
1,431
Shenandoah
1,278
Smithfield
3,516
South Boston.
South Norfolk... 3,100
10,604
Staunton
7,008
Suffolk
1,400
Tangier.
1,230
Tazewell.
1,200
Toano
1,000
University
1,928
Vinton
1,427
Warrenton
1,064
Waverly
Waynesboro..... 1,389
1,200
West Norfolk.
1,397
Westpoint
2,714
Williamsburg.
5,864
Winchester.
1,314
Woodstock.
3,054
Wytheville
WASHINGTON
Aberdeen
Anacortes.
Arlington
Bellingham
Blaine
Bremerton
Buckley
Burlington
Camas
Centralia
Charleston
Chehalis
Cheney
Clarkston
Cle Elum
Colfax.
Colville
Cosrnopolis
Davenport
Dayton.
Edmonds

Eft:l. .burg
a.

13,660
4,168
1,476
24,298
2,289
2,993
1,272
1,302
1,125
7,311
1,062
4,)07
1,207
1,257
2,149
2,783
1,512
1,132
1,229
2,389
1,114

4,209
1,532
24,814
1,000
1,100
1,233

Everett.
Fern Hill
Fort Steilacoom.
Goldendale.
Hillyard
. 3 2 71
s 8„ 176
Hoqu iam
2,039
Kelso.
1,219
Kennewick
Kent
1,908
Leavenworth.
1,551
Lynden.
1,148
Marysville
1,239
Medical Lake
1,730
1,552
Monroe.
Montesano.
2,488
Mount %ernon.. 2,381
1,199
Newport.
North Yakima. 14,032
OLYMPIA
6,996
1,549
Palouse.
2,383
Pasco
1,605
Pomeroy.
Port Angeles
2,286
Port Blakeley .
1,050
Port Townsend.. 4,181
Prosser
1,298
2,602
Pullman
Puyallup
4,544
Raymond
2,450
Renton
2,740
1,859
Ritaville
3,126
Roslyn.
237,194
Seattle
2,129
Sedro Woolley.
1,163
Shelton
3,244
Snohomish
3,223
South Bend
104,402
Spokanc
1,110
Sprague
1,379
Sunnyside
83,743
Tacoma
1,694
Tekoa
1,038
Tenino
1,598
Toppenish
9,300
Vancouver
1,237
Waitsburg
19,364
Walla Walla
4,050
Wenatchee.
1,140
Winlock
WEST VIRGINIA
1,200
Adamston
1,252
Alderson.
1,600
Amos
1,030
Ansted
1,432
Avis
2,161
Beckley
1,481
Belington
4,976
Bcnwood
1,200
BlaMe
11,188
Bluefield.
1,000
Boomer
Bramwell
1,458
Buckhannon.... 2,225
Cameron
1,660
Central City.... 2,800
1,215
Ceredo
CHARLESTON. 22,996
Charlestown
2,662
Chester
3 184
Clarksburg
9,201
Coketon.....
2,000
2,615
Davis
1,500
Eagle
1,000
Eckman
1,455
Edgewaxl
2,100
Elkhorn
5 260
Elkins
1,899
Elm Grove.
9,711
Fairmont
2,031
Follansbee
1,000
Freeman
1,038
Fulton
1,200
Gary......
1,086
Gassawa y.
1,000
Giatto...
7,563
Grafton
1,702
Guyandotte
Hambleton
1,300
3,656
Hinton
1,00()
Holden
1,000
Horton
31,161
Huntington
3,705
Keyser
2,047
Keystone
1,630
Kimball
1,640
Logan
1,500
McDowell
1,921
Mcl'slechen.
1,153
Macdonald
1,000
Mammoth
2,672
Mannington
1,045
Marlinton
10,698
Martinsburg
2,000
Ma ybeury
2,084
Monongah
1,888
Montgomery ..
9,150
Morgantown
8,918
Moundsville
New Cumberland 1,807
New Martinsville 2,176
17.847
Parkersburg
1.281
Parsons.

W. VIRGINIA Cont'd.

CANADA

1,038
Philippi
2,054
Piedmont
2 045
Point Pleasant..
3,027
Princeton
1,081
Ravenswood
1,200
Red Jacket
1911 Census or recent
3,061
Richwood.
. io
iue itth of po . ulat..
1,112 estila iesia.oiitp.
Romney
2,157
Ronceverte
2263i:25800020080
1,209
St. Albans
AIimo rte,O gt 0 t
nthenst b urn. n
1,358
St. Marys.
3 024
4:963
Amherst, N.S.
2,169
Salem
1,533
Scarbro....
43,,349050
-ernrie,0 Ont
Bar priuant
1,070
Shepherdstown
1,224
Shinnston.
A)1:1 mer,Q(junet
ly
2,684 ' iner
Sistersville
1,224
Spencer
Bathurst, N.B.
1,121
Sutton
2i
335 ,,
33 .
2
offic6089 0072
114,,23
Beauport, Que
1,126
'Terra Alta
9,850
Bellle viloa t nt
Ber in le,0
2,354
Thomas
1,500
War Eagle
1,526
Welch
Blc: QL
Bi ack ueake, Que
4,189
Wellsburg
Bowmanville, Ont
1,500
West Grafton
13racebridge, Ont
2,213
Weston
41,641
Wheeling
3,561
Williamson.
dPton'01°ainnitt
I
BraiufonA,'
BB rraanm or '
1,139
Williamstown
Brockville, Ont
2,000
Winifrede
Buckiagharn, Que
.. 3,000
Winona
Calisar
c:a ni l
Campbellford, Ont
WISCONSIN
i'
.
thell:7N B
y'
Caraquet, N. 15
2,082
Algoma.
:
:
'050060
351652
2' 87349
92:
36
424,84300
Carleton Place, Ont
1,011
Alma.
Charlottetown, P. E.I 11.198
7,196
Antigo
16,773
Appleton
70
10,,060
35,5703
C hltha in,O• 13
Clia1 haln Nnt
1,200
Arborvitae
5.880
Chiiioutick:B c
chic iwa ini Que
1,212
_Arcadia
3,000
11,594
Ashland
Clinton, Ont
1,405
Augusta
Coatil tookot ue
ba i,o,Q
6,324
Baraboo
1,449
Barron
1,890
Bayfield
Cotling g'ood,
nurw °utOnt
6,758
Iteaverdam
Cornwall, Ont
15,125
Beloit
Cranbrook, B.C
4,636
Berlin
Cumberland, B.C
Black River Falls 1,917
Dalton, Man
1,204
Bloomer
Dartmouth, N.S
1,525
Boscobel.
:
4:05030
5'625089:
234: 9:2
67'8:
2: 5 92
:
1,517
Brodhead
De wronlo,ukrtt
D ase n Y O on
3,212
.
Burlington
Digby, N.S
1,777
Cedarburg
0
3:105
2 00
Drummony '11e, Que
dt. .t,
ri,to
i ..
1,530
Chilton
Dundas, Ont
8,893
Chippewa Falls
Dunville, Ont
1,747
Clintonville
23 , :58:
6 00382
4 84
25:
,
Eain, lltr,.Alberta
Fimo e N B
in
2,523
Columbus.
1,833
Crandon
Faroie,m:cue
F e nha B Q
3,691
Cudahy
333:228020028
1,445
Cumberland
Fort William, Ont.
1,808
Darlington
8
6
:
3 9
Fru rv,Q or Riviere du 10 52
aseu pi11eoe
2,450
Delavan
4,477
Depere
Fredenceon, N. B
1,791
Dodgeville
. .
Gllt,0n ty.Nnot.... . 10,299
GGc. ceearo1 ha.,eo , . Su t
G ao ir.u . .
l (i
1,503
Durand
1,700
Eagle River
14 561
6 750
:
18,310
4,522
Eau Claire
2,513
Edgerton
GGrraanodbyF,
1,707
Elkhorn
orks, B.C
Que
1,005
Ellsworth
3 °°°
,200
Grand Manan, N. 13
1,729
Elroy
ne horst,Que
v dnMere, oot
Gra
Ga
r
2,061
Evansville
1,159
1 72820
2 5001
.:
2
Fennimore
Gale as:ood,:. C.. ..._ 4:00
H reifn N.
2,000
Florence
18,797
Fond du Lac.
Gaill p t;u?
Hueeyh
8416415,:,803184978911
3,877
Fort Atkinson.
1,031
Fountain City
Hamilton, Ono
lint
6,521
Grand Rapids
N .
vs
iIHaao0,k eurbaur)o..t _. ..
Ha m p o, c
uwn i n, ,
25,236
2222,:,487100055002
Greenbay
2,982
Hartford.
4,000
Hayward
Hespeler, Oat
1,096
Highland
1,881
Horicon
inu ersoil,0nt t
H gn t v l le, On
147;300585507
2,810
Hudson.
2,600
Hurley.
Joliette, QuB c
e
1,000
Iron Belt
2,500
l aslorpsC'
e ml B .
Iron River
6,356
6 149
13,894
Janesville
Kenrar di0 t ot
ia ora, oe,.1 o
3,500
2, 77
0
2,582
fferson.
e
c
1,003
Kingston, Ont
uneau
4,717
Lachine, ue
aukauna
27825
2,0718
2
21,371
Lachute, ue
Kenosha
1,839
Kewaunee
Laozsa, ,e C
Lad yo mibho li.
3,416
1,244
Kiel
3,000
1,170
Leamington, Ont
Kilbourn
30,417
8:448
2 048
La Crosse.
y,u
Letfitolo: N.t. s
LeLLiinv di rQge, A l berta
vise la ld
2,352
Ladysmith
6,956
3,079
Lake Geneva.
1,672
Listowel, Ont
Lakemills
2,329
2,600
Lancaster
42:19:
6 67
1,354
London, Ont
Little Chute
4,016
1,044
Longueuil, Que
Lodi
25,531
Lunenburg, N. S
MADISON
13,027
Magog, Que
Manitowoc.
17
1
14,610
NNNIaau .isondeuvNne, Que .. 143 0106
V. ,aonsrven iQe,et B
r yf a,. o, i .
t
. 8;5 4
Marinette.
2;044400
5,783
Marshfield
2,300
1,701
Mauston
12,,60425
835 , 8530720
2,282
Mayville.
Hc,Nao.tt,BAlberta.
1,846
Medford
1,833
Mellen
6,081
MMMedilidiltiaoclwilndne',
Menasha
Moncton, N. 13
5,U36
Menomonie
2,500
8,689
Montnagny, Que ...
Merrill
Montreal, Que.. ... _466,197
373,837
Milwaukee
Moose Jaw, Saskatche2,925
Mineral Point
wan
1,325
Mondovi
Mount Forest, Ont
2,400
4,410
Monroe.
1,104
3,000
Montello
1,048
Mount Horeb
2,100
NM maame,0ri.: t .7
Na p i e°Ba .
1:n 'BY CQ
National Home
1,054
Neepawa, Ma.n
Necedah.
13, 804
4 802
2 360
1' 7009
:
4
2
Nelson, B C....
5,734
Neenah.
Newcastle, N. B..
1,957
Neillsville.
New Glasgow, N. S
6,240
9 ,505
1,570
Nekoosa
2,800
New Liskeard, Ont...
,074
New Lisbon
3,000
Newmarket. Ont. .
3,383
New London
New Westminster. B. C 13,694
New Richmond... 1,988
Niagara Falls, 0nt
1,700
Niagara
Nocoiet,a yue
i rtl i BQ, oot
2,225
North Fond du
1,718
1,960
Lac
North Statkety, Que
6, 00
2 835
,
8
North Milwaukee 1,860
North Sydney, N. S
5,418
3,054
Oconomowoc
North 'Toronto, Ont
5,362
5,629
Oconto
North Vancouver, B. C 7./81
1,427
Oconto Falls
Orangeville, Ont
4,545
231 1
2,100
Odanah
06114, Ont
1,285
Omro.
7,433
1,146
Onalaska
°tt1awa' u .
0 ia wa 0 nt1•
s
,°
:
84 7005
6 0
2 40
2,200
Oneida
132:z10505
o
0 trss:. os e, ..
pc,carw eie,bos.or out,, , uo.
u o m t Nd Q
33,062
Oshkosh
1,972
Park Falls
1,975
Pesh I igo
1,948
Phillips
Parry Sound, Ont
4,452
Platteville
Pembroke,0ne .B.(2. 145628,:10 1.008
544- 2
: ,6,;14
.uv tr,
.
3,094
Plymouth.
Penetanguishene, Ont
3,400
5,440
Portage
Port WashingPilteha;oo Lt.1,-0n t.. . i8 582
pe rtol, r olu gl.
tr O
.
3 318
,
3,792
ton
Pettol. , Os t .
pkrou N. n .
ia
.. . 4 33,
•1 1 13
,
.
3,149
Prairie du Chien
1,269
Princeton
. 3,63:5
33: 901
0
20
b
38,002
Racine
Point Grey, B C
1,521
Reedsburg
Portage la Prairie, Mae 5,885
2,615
Reed.sburg
5,637
Rhinelander
Por1cetcHrut,obo Ol°aska
PP rieenss • k ope, tt,nt t••
Prr t o l,h urro s
P l 1 en ;6
ont
n
15 28
1,0 19
1,018
Riblake
3,968
Rice Lake
Richland Center. 2,652
3,739
Ripon
6,254
wan
1,991
River Falls.
Priviligefcre R u7,ert , C.t . C.
i ieed tcisett: p niso B
itit(
kal
owk.
: t.n
. 7,
1,500
St. Francis
Quehe,,. Que
1,1U9
Seymour.
2,923
nhawa.no

7

l

Sheboygan.
Sheboygan Falls.

26,398
1,630

Shullsburg
South Milwaukee
Sparta
Spooner
Stanley
Stevens Point
Stoughton
Sturgeon Bay..
Sun Prairie
Superior
Tomah
Tomahawk.
'Two Rivers
Viroqua
Washburn
Waterloo
Watertown.
Waukesha
Waupaca
Waurun
Wausau
Wausaukee
Wauwatosa
West Allis
West Bend.
West De Pere
West Milwaukee
Whitewater
Wittenberg

1,063
RichnU on asAlL::
I egid m ,S 1.
6,097 :aeed, Q 1'1ae w. a.ii 3330 52:
lb
151
2 !
5
3,973
Rirnouski, Que.. .....: 2,705
1,453
450
Roberval, Que.
2,675
Rockland, Ont.. .. .. 3,000
8,692
5°0
Rossland. B C.. .. ... 6.500
4,761
Roxton Falls, Que. . . 2,800
4,262
Sackville, N. B.. . .. 3,50U
1,119
St. 13oniface, M an.. . 7,717
40,384
st..Catha ie se O neaote 12,460
S e marrined B
.
3,419
2,907
4,850
3,00U
StQuenri de Lauzon,Que 2,250
He
2,059
St Hyacinthe, Que
3,830
St. Jelin, Que
1,220
St. jerome, Que. . . ..... 43 6°99
8,829
2 313
9: 37
5
:976
sr:J ola,.NQoei..........
St
hms . . B
8,740
2,789
St. Marys, Ont
3,362
6° 0
3, °4
38
St. Paschal, Que
16,5a0
St. Paul's Bay, Qua .
2,100
2,540 '
4, 00
2 80
St. Raymond, Que..
3,346
4,500
St. Rotnauld D'Etchmin,
6,645
2,462
St. Ste
Quephen. N. B
2,100
St. Thomas, Ont..
1,458
13,0 0
3000
4:
,0 0
Sarnia, Ont
3,224
Saskatoon,Saska tchewan19,0 6
1,090
29 2
'
0
Sault Ste. Marie, Ont .. 10,179
Seaforth, Ont.
13662::434200040155
WYOMING
Ssehalk,irveko,eMgoaon
Falls, Que. 3,818
Buffalo
siroebr.oku, Que
Sher oeo oe t
1,368
Casper
2,639
CHEYENNE.
11,320
Smith's Falls, Ont
Cody.
1,132
Sorel, Que..
Dietz
1,200
souitagro 'Ia.
Speu 1tnh , i:coN. Ss
ss rairisvthrod ,., n .
it f aiV No t
.1
Douglas
2,246
Evanston
2,583
Fort Russell
1,000
Green River.
1,313
12 923
2 39
:9
Hanna
2,000
Strathcona, Alb erta
5,580
Lander
Strabhero N. ii.,sael.li... .. 272:,:
ssuto t u royny Oi s: 0 t .
lg
1,812
t .. 6
.
2 4240:
, 0604
6(
Laramie
8 237
Rawlins
4,256
Rock Springs
5,778
Summer: e:1 E. 1
O P.
d
2,875
Sheridan
Sydsexy N..B s N s
s us ne, m
8,408
Thermopolis.
1,524
Sydn ry,
Ta bee Alberta
.
17,617
'Terrebonne, Que
'shetfor. oion es, Que .
..1 orold Nlit
T
d
.

2,400
2,000
7,262

TT hrrdo,i3.ic , Que..... 14,4°°
T au e, R y:::
:e
2 84 1
oN.rt O nt....... 2,450
b u s .t..
.o
37966:,402441750
:Tillston,0nt .
.1s en nl
r
::1'
.
Trois-Pistoles, Que
Valleyfield, Que.
Vancouver, B. C
‘Veicrd ulQnc .
Verto roi ,IBI .e
, oo :

.. 4,210
2 007
2,50U
........
31411,,,366622002

vicderia vilae, Que
Vir too m l o
,
1valke r to? ,On, .. .
W i
v il , o,.
e
tr

30 7
2 2°
,
332:,4080
3 1 07 001
, 0

Wallaceburg, Ont

124 340
3 700
1 81 38
i0

IvaItero000 ue
Wetla l1 d, Q n l.
0o, Ot
, o
wes,ie, t,. Q
W tm ounN sue
il
:erta
1
l,
WWWinhetaidtbssoky1wonn.tA
On t ..
. i'
wiarton O t
W la dsor: Nns

.. 5,311

2,110

12,5:1•
3..8'
730
;
Windsor Mills, Que
2,600
O .t S.....
Nn
6,571
Winnipeg, Man...... 135,430
Woodstock, N. B..
3,800
°Wodstck. nt
9,321

Yarmoum
Wiagha t:.

-92Subdivision of Districts.

C- t
C 4
5

The foregoing division which recognizes ten distinct disl
tricts,represents, it is believed, substantially the gene
ral grouping
that will need to be followed in assigning the banks of
the country to
reserve banks,zrhile some other arrangements would be
possible, none
now in mind, it is thought, is to be preferred to
this.

It is, however,

evident from a general survey of the districts as
now laid out that

1

two of those recommended are lacking in proporti
on--the Great Lakes district because of its unduly large capital, the
Pacific Coast district
because of its unwieldy size and defective tran
sportation. While these
districts for the reasons already sufficiently
stated, are considered
to be geographical and banking units in the
larger sense of the term
,/
it is recommended that each of them be brok
en into two without, however,
changing the boundaries of the district in
relation to other districts.
It will be recalldd that certain canons
have been laid down as a guide
In the process of districting at earlier
points in this study, one of
them being that so far as practicable the
reserve banks should be prevented from assuming a preponderating size
; another that where an excessive area is required for any district in
order to meet capitalization requirements a further division
may fairly be made if it appears
that early future development is likely
to produce the needed wealth
and bank capital at a not too dist
ant date.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-93North Pacific District/

, 9

Accepting these general canons and turning attention to
the suggested districts, a beginning may be made with the Pacific Coast.
As is seen from the map already submitted the area assigned to the district is exceedingly large.

To reach San Francisco, the probable head-

quarters of the reserve bank, from Seattle or Portland on the north is
a journey of some forty-eight hours with transportation facilities unsatisfactory, (hearings

t 4 -,C5. Moreover, the evidence at hand shows

a jvariation between the types of industry and business prevailing on the Northern Pacific Coast and those prevailing in the central and southern region.

This suggests thecbsirability of dividing the

Pacific Coast into two sections, one northern and one southern.

That

the probable future development of the northwestern section of the
country will be great is clearly indicated by the facts as to recent
growth in bank capital and resources.

Undoubtedly the movement of

Population and capital into the northwestern States, which is already
a marked feature of the industrial history of the region, will continue.
That being assumed to be the case, the establishment of two districts
on the Pacific Coast instead of one may be taken as a desirable conclusion and a corresponding readjustment may be sought.
As already indicated, the bank capital suggested for the
district reserve bank of the Pacific Coast would upon the present suggested basis work out at about $8,54000

, the national bank cap-

ital and surplus of the region being $141loo,000 .

This on the face

Of it is sufficient to provide capitalization for two reserve
banks
that would be within the limits of size set by the act.

It is not,

however, Jesirable to defeat the purposes of the subdivision in the
matter of transportation by attempting to equalize the capital between
the two districts.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A division betwElen the northern and southern port-

(\
'

-94-

ions of the district may be effected on general geographical and transportation considerations by talcing the northern portion of the territory
largely following State lines,since there are no considerations to
Prevent, and assigning to such a northern Pacific Coast district the
States of Washington, Oregon, Idaho and that part of Wyoming formerly
included in the Pacific Coast district.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-95-

o
O

Description of District.
On this basis the North Pacific district sug7ested would

be de7cribed as follows:

Beginning at the northwestern corner of the

United States follow the Canadian frontier to the North
eastern corner
of the State of Idaho.

Follow the eastern boundary of Idaho eastw
ard

and southward to the Wyoming boundary then follow
the southwestern
boundary of the St. Paul-Minneapolis district to its
intersection with
the southern boundary of Wyoming.

Follow the southern boundaries of

Wyoming, Idaho and Washington west to the Pacific
Coast, then follow
the coast north to the point of departure.
Analysis of Testtmonyi(
n'-

f

k

The testimony relating to the Pacific Coast as a whole
was
that taken at Seattle, Portland, San Francisco
and Los Angeles, (that at
El Paso having already been sufficiently consi
dered in fixing the southwestern frontier of the Pacific Coast district).
While in general the
Position of San Francisco and Los Angeles witnesses
was in favor of a
single Pacific Coast district it was not viole
ntly so, there being admission that the northern section constituted pract
ically an area by
itself. In speaking at San Francisco, R. M. Lynch
for example advocated
a very large Pacific Coast district
and the same position was assumed
by W. G. Gardner. The latter speci
fically urged the inclusion of Arizona, Utah and part of New Mexico as belon
ging in the strict sense of
the word to the Pacific Coast distr
ict. In the same way C. K. McIntosh
Urged a bank whose member banks should
possess about $13o,000,000 capital which would practically imply the
inclusion of all the territory
already assigned to the Pacific Coast distr
ict. Californians generally
inclined to the "large" district already
indicated. On the other hand,
at the north
ern hearings, while the general identity of
the interests


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PA?

-96-

of the 7acific Coast was recognized, there was a dire
ct request for the
organization of a separate North Pacific district prov
ided a capital
could be had that would be satisfactory to the gove
rnment authorities.
This view was taken during the hearings at Portland
for example by Edward cookingham (minutes pp. 2820 ff.) who repr
esented that even if one
were not now established in the North Pacific
region it would soon be
absolutely necessary. A like view was taken by
W. L. Thompson, President of the Oregon State Bankers Association,
who recommended the placing of a reserve bank at Portland. San Fran
cisco, he thought, would
be entitled to second choice as the site
of such an institution. A
similar view was taken by R. S. Rush and othe
r witnesses. It is worthy
Of note that the entry of sufficient stat
e banks to make up the desired
capital was promised. A. L. Mills gave the
results (p.2686) of a canvass of banks in Montana, Idaho, Washingt
on and Oregon, which showed
a general preference for Portland.
Of the banks l8,000,000 in capital
1
Voted for Portland, $8 1 000l 000 for Seat
tle and P l000,000 for Spokane.
At Seattle therequest for a bank was
also strongly expressed partly
O n the ground that, cons
idering Alaska as tributary to the dist
rict,
Seattle was more central than Portland,
partly on the ground that the
Population and wealth of Washington were
greater than those of Oregon.
This view was distinctly take
n by Governor Lister (p. 2354 ff.). But
Independent of location the witnesse
s from the northern Pacific Coast
States irrespective of locality
were thoroughly in favor of the establishment of a bank in their own sect
ion. M. J. Backus expressed the
general sentiment in his assertio
n that the immediate growth of the
region would undoubtedly be
so great as to provide an abundant supp
ly
or bank capital for the new institut
ion and that the state banks woul
d
unquestionably join with
the national inmaking up the reso
urces re
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

iriP1.3
"

10
'

-97-

quired for immediate reliance.
The only point where any considerable diff
erence of opinion
seems to have occurred, was found in conn
ection with the inclusion or
non inclusion of Montana in the North
Pacific district. While there
was some evidence in favor of the
inclusion of Montana, it is beli
eved
that the retention of that State in the
St. Paul-Minneapolis district
is the wiser course. The capital
of national banks in Montana
is
roughly 9l000,000, 6 percent of which woul
d be $54o,000. This could
be spared from the St. Paul-Minn
eapolis district, but it is not
believed
the transfer would be to the inte
rest of Montana which is industri
ally
Closer to the territory bordering it on
the east. If any of the State
Should be transferred to the North Paci
fic district, it should probably
be only the western one-thir
d or one-half.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-98Capitalization.

f

The capitalization of the north Pacific Coast district
e
6- ri\
under these conditions would be as follows:
Sitate or City;

Capital and ftUrplus
-

Mrashington

6,2oo,000

Seattle,/

5 1600,000

Spokane,

4,2oo s000

Tacoma,

11loo p000

Oregon,

7,2oo t oo°

Portland,

6,800s000

Idaho,

5,loo,000

Wyoming, three-fifths estimated/

1,800,000

/Total

$38,000000

apitalization of reserve bankdai:i

2,28o l000

On this basis over $1 19oo p000 would require to be raised
from State bank members, private subscription or governmental purchas
e
of stock.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
hehalis•

.
Medford

• Roseburg

Mal Shfield

Spokane•

Colville

,Vallate

Canyon
City.

n10

Baker.

Gibbonsvi le

Rexburg •
Idaho Fallg •

Twin Falls •

Rontpelie
Presto,
'
• .• •

s iver Cit
l
•
;!tountain Maine
Salver
Pocatello.

• Weiser
Caldwell
Boise
Nampa

*Pendleton
.La Grande

Colfax.
Xoseow•
Pullman•
Dayton.
.Lewiston
Walla Walla.
Iprangevill

•
k, i i ve alles
tdTte D

Deschutes.

'Albany

Republic.

• Wenatchee
Ellensburg
North Yakima*

ancouver

•&deal

TLAND.•

-

Everett

* Bellingham

SEATTLE
e
,4 •Tacoma
Olympia. Roslyn'
•Aberdeen

Ange

Bawlin%
• • Rock Sprin,
.reen River

Orange%


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

SAN FR

"Redding

s

ES

Paso

Tama

Needles.

57.43elirceirtiers.....
'1 ;

'Redlands
•Riverside
anta Ana -

44
'4.

Las Vegas

•San Bernardino

Ballarat•

.Eureka

Searchli

'Goldfield

•
Independence
• Visalia

• Bakersfield

--.-:• r,.-1.4...whiPgrnhow,
f

.c12,

Fresno

Stockton

0.

*
San Jose

0'

•
Sacramento

'Chico
Nevada eity.
Mar' vine.
,

•Red Blu/f

Monticello•

Dragon'

0
14

NOKof„,

Cid

Morepci

San Carlos

Tucson.

Florence•

Phoenix. .Mesa .Globe

•Prescott

Flagstaff
• Winslow
Holbrook•

.Grand Canyon

Williams.
Ierome•

.St. George

•Beaver
„s •Millord
e

• Neplii
•Ephraina

Spanish Fork ;Provo
Eureka•

Logan
.
Brigham.
Ogden'
.SALT AKE CITY
Bingham
"Heber
Canyon •
.Lehi

r••••••••...11a
,

• •• •••••••••......rettais.alShalo.."_
•••••• • •

Lincoln*
.Alaniogordo
Santa Rita
.
"Silver City
.LordsbnEg
Deming •Las Cruces

Oil

.Socorro

Albuquerque.

•Gallup

Duran go

• Oura y

An•
spe
•Grand
Junction
.
unnison
G

•Glenwood

,

CD

-99,
t.5° .

South Pacific District/

9

Cutting off the 'North Pacific district in the way just inkt
)
dicated would leave the remainder of the Pacific Coast district as

q(64previously

outlined to constitute a new district which might be known

as the South Pacific district.

Its capitalization would then be as

follows:
Capitalization/9
e'-ctate or City:

C pital and

urplus
•
$ 340,800,000

California,
Los Angeles,"

p.

San Francisco,/

9,400 t000
44,800t 000

Arizona,,4
Nevada/

2,3oo t000

Colorado, three-fifths estimated,

3,600t 000

Utah,

1,600t000

Salt Lake City,

3,400l 000

New Mexico, three-fifths estimated,.

2,000 t000

Southwestern Texas, one-tenth estimated,

IJ

1,800,000

5,2oo,000

Total

$1o4,9oo,000
••••••••

Capitalization of reserve bank4 e$
"


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,294,000
4

(1'
r7")
of
Subdivision of Great Lakes District./

(77 a. 9-S47

As already noted, the great extent of the Great Lakes district marks it out as a suitable field for further subdivision, while
the fact that it has so large a capitalization as has been assigned to
it does the same.

Studying the Great Lakes district as a whole, it

must be admitted that there is no part of it which is not within fairly reasonable distance of any of the points likely to be selected as
the site of a headquarters bank.

The distances are, however, consid-

erable and the areas included in it are decidedly distinct from one another.

It is, therefore, probably an improvement a;lcle plan of keep-

ing this district upon an independent basis td make a suitable subdivision of it.

The line of division referred to should be drawn in such

a way as to leave an approximately equal number of large centers in
each of the two resulting districts andso far as possible to maximize
the convenience of inhabitants of the district in reaching the reserve
bank.

It is, therefore, submitted that the line of division should be

begun at a point on the Lake frontier of Ohio about midway between
Cleveland and Toledo to intersect the southern boundary of Ohio at another point to be selected with a view to the division of the latter
State.

This point as will be presently seen in the analysis of testi-

mony should probably be placed just north of Parkersburg.

There is no

Positive evidence regarding the location of the point on the southwestern frontier of West Virginia which should serve to fix the dividing line between the two parts of the district, except that the evidence shows that the line should run considerably north of Charleston.
It is believed that a point on the border due west of Lynchburg, Va., will
P
\ fulfil the requirements of the evidence.

Connect the three points in-

dicated and the southwestern boundary of the northern and eastern
Portion of the district is complete.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-101Description of District/
Follow the southern shore of the St. Lawrence and of the
Great Lakes from the northwest corner of the New England district to
a point midway between Cleveland and Toledo, 0.
T1\

Connect this point

with the West Virginia frontier just north of Parkersburg and connect
this point with a point on the southwestern boundary of West Virginia
west of Lynchburg.

Follow the southwestern boundary of the Phila-

delphia and New England districts east and north to point of departure.
_
(;C
k,

Capitalization

state or City;
4Tew York, one-third estimated, •
Pennsylvania, one-half estimated/
)
l'ittsburg/
,
Ohio, one-third estimated/
j
)
leveland,,'
/
est Virginia, two-thirds esttmatedA
13
Total

apitalization of Reserve Bankg6%


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cawital and ,Surplus
$ 28,000,000
71,000,000
48,500l000
18,15o,000
14,400,000
11,loo l000
$191,15o,000

1 69op000

-102',lap of Eastern Great Lakes


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BUFF AL

DiStriCt

Rocheste; Syracuse.

Ithaca*
.1dmestown Elmira
.
•Bradford
CLEVELAND
.y. gstown
oun
New Castle
•PITTSBUR -

airmont•
arkersburg

'Who.

-103-

W,

<--- 9 c

/t-Western Great Lakes District/

9

By cutting off the section of territory which has been
described as the eastern Great Lakes district there is left a western
district or territory which may be referre',2 to as the western Great
Lakes district, including

g

the southern peninsula of Llichigan, east-

ern Indiana, western Ohio, southwest and west virginia and northwestern
Kentucky.

This it is proposed to regard as an independent district