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FOURTH ANNUAL REPORT
OF THE

FEDERAL RESERVE
BOARD




COVERING OPERATIONS

FOR THE YEAR 1917

WASHINGTON
GOVERNMENT PRINTING OFFICE
1918

TABLE OF CONTENTS.
Fart I.—Report of the Federal Reserve Board
Text of report:
Letter of transmittal
Federal Reserve Banks as fiscal agents of the United States
Discount policy of the Federal Reserve Board in connection with
war
financing
War finance and banking
:
Discount rates and war
financing.
Effect of amendments of June 21 to the Federal Reserve Act
Membership of State banks and trust companies
Curtailment of unnecessary credit
Private and corporate
financing
Conservation of gold
Check clearing and collection system
Operation of the gold settlement fund
Establishment of branches of Federal Reserve Banks
Enforcement of section 8 of the Clayton Act
Supreme Court decision in case brought to test constitutionality
of section I l k of the Federal Reserve Act
Earnings and expenses of the Federal Reserve Banks
Conferences of Board with Federal Reserve agents, governors,
and advisory council
Reserve cities designated during the year
Amendments suggested to the Federal Reserve Act
Organization, staff, and expenditures of the Federal Reserve
Board

Page.
1-34
1
2
5
8
10
11
13
14
I4*20
23
24
24
25
26
27
28
30
31
34

EXHIBITS.

Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit

A.—Discount rates, movement of, during the year
B.—Federal Reserve notes
C.—Statements of condition of Federal Reserve Banks__
D.—Investment operations of the Federal Reserve Banks
E.—Gold settlement fund operations
F.—Clearing operations during the year
G.—Receipts and disbursements of the Federal Reserve
Board
Exhibit H.—Earnings and expenses of the Federal Reserve Banks
Exhibit I.—State banks and trust companies admitted to membership hi the Federal Reserve system
Exhibit J.—Circulars and regulations of the Federal Reserve
Board
Regulations governing the exportation of coin,
bullion, and currency
in




37-43
44-59
60-95
96-132
133-139
140
141-144
145-157
158-162
163-186
183-186

IV

CONTENTS.

Part I.—Report of the Federal Reserve Board—Continued.
Exhibit K.—Foreign branches of national banks authorized
Exhibit L.—List of national banks granted fiduciary powers during
the year
Exhibit M.—List of member banks granted authority to accept
drafts and bills up to 100 per cent of their capital
and surplus
Exhibit N.—Personnel and salaries:
Salaries of officers and employees of the Federal
Reserve Banks
Salaries of officers and employees of Federal
Reserve Board
Salaries of national bank examiners
Exhibit O.—Directory of the Federal Reserve Board, Federal Reserve Banks, and Federal Advisory Council
Exhibit P.—Description of Federal Reserve districts
Map showing

Page.
187
188-190
191-193
194-196
196-197
198-200
201-207
208-213
214

CHARTS.

Federal Reserve notes outstanding and in circulation, also amounts
of gold and required paper held by Federal Reserve agents
Movement of reserves of all Federal Reserve Banks during the year
Movement of earning assets of all Federal Reserve banks during
the year
Net deposit and Federal Reserve note liabilities, total reserves, and
ratio of total reserves to aggregate net deposit and Federal Reserve note liabilities
Cash reserves and excess reserves of Federal Reserve Banks
Weekly transactions through the gold settlement fund
Map showing Federal Reserve districts
Part IT.—Reports of Federal Reserve Agents to Federal Reserve Board
District No. 1—Boston
District No. 2—New York
District No. 3—Philadelphia
District No. 4—Cleveland
District No. 5—Richmond
District No. 6—Atlanta
District No. 7—Chicago
.
District No. 8—St. Louis
District No. 9—Minneapolis
District No. 10—Kansas City
District No. 11—Dallas
District No. 12—San Francisco




49
65
70
71
73
139
214
215-607
217-251
253-306
307-358
359-388
389-411
413-432
433-454
455-4S3
4S5-505
507-533
535-571
573-607

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
FEDERAL RESERVE BOARD,

Washington, January 15,1918.
SIR : In conformity with the requirements of section 10 of the Federal Reserve Act, the fourth annual report of the operations of the
Federal Reserve Board for the calendar year ended December 31,
1917, is submitted herewith.
The outstanding feature of the year has been the entry of the
United States into the war. The declaration by Congress of a state
of war, on April 6, had been preceded by a period of unprecedented
activity and expansion in practically all lines of business and industry, tempered, however, in the minds of thoughtful men, by uncertainty and apprehension as to ultimate adjustments. The feverish
conditions brought about by an unparalleled increase in business activity, changing our position from a debtor to a creditor nation, the
great influx of gold into the country, and the large foreign credits
negotiated here, had convinced the Board that the time had come
when the Federal Reserve system should be strengthened and brought
to the highest state of efficiency, in order that it might perform the
most effective service in either one of two events which seemed likely
to take place—the conclusion of a general peace in Europe^ or the
entry of the United States itself into the war. In the event of peace,
a radical readjustment was to be expected, and there would have
been a slowing down of those industries which were engaged in supplying war material, a consequent heavy falling off in our exports,
accompanied, in all probability, by a strong demand upon us for
credit and gold. On the other hand, in the case of our own belligerency, it was foreseen that there would be a greatly increased demand for all articles necessary for the equipment and maintenance of
our own military and naval establishments, and much larger demands
for the sale of goods and for credit to the countries associated with us
in the war, for both of which large loans would be necessary. It was
foreseen, in addition, that we should anticipate a cessation of gold
shipments to us by the allied powers, as well as a contraction of our
export trade to neutrals.
For these reasons, the Board felt that it should in either event,
during this period of uncertainty, adhere strictly to its policy of
1




2

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

maintaining the liquid character of the assets of the Federal Reserve Banks, of discouraging any unnecessary expansion of credits,
and that it should also cause the reduction to very moderate proportions of the holdings of the Federal Reserve Banks of such investments
as bonds and warrants which had heretofore been made primarily for
the sake of income. Early in the year, therefore, the Board began to
carry out these policies and the end of March found the Federal Reserve Banks in a very strong position. Holdings of municipal warrants, which at times had been freely purchased by some of the
banks, had then been reduced to a comparatively small amount.
In order better to provide for the strengthening of our banking
structure, for the conservation and greater concentration of our gold
supply, and for the more effective control of its outflow, the Board
in January suggested some amendments to the Federal Reserve Act
which were designed to make membership in the system more
attractive to the State banks and trust companies, to modify
reserve requirements in such a way as to increase the gold holdings
of the Federal Reserve Banks and to make their gold more available as a basis for an elastic note issue. These amendments finally
became law on June 21 and will be discussed more fully in other
parts of this report. In anticipation of these changes and of future
contingencies, the Board determined upon the preparation of a much
larger supply of Federal Reserve notes. During the months of
January and February it placed additional orders with the Bureau
of Engraving and Printing, through the Comptroller of the Currency, for more than $900,000,000 of notes, and arranged also that the
stock of notes on hand should no longer be reduced through withdrawals for current needs, but that as drawn upon by the Federal
Reserve Banks new orders in equal amount should be placed automatically. In order to insure immediate availability, ample supplies of notes were placed at the subtreasuries for delivery to the
Federal Reserve agents as required. The precautions taken have
been justified by events, as there developed a strong demand for
Federal Reserve notes throughout the year.
When a state of war was declared on April 6, the reserve position
of the Federal Reserve Banks was strong, and gold in the Federal
Reserve Banks and with Federal Reserve agents amounted to
$943,552,000, the combined reserve against deposits and notes averaging 84.7 per cent.
FEDERAL RESERVE BANKS AS FISCAL AGENTS OF THE UNITED STATES.

The entry of the country into war resulted almost immediately in the
assignment to the Federal Reserve Banks of a new and important fiscal
agency function. Under authority of section 15 of the Federal Reserve



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

3

Act the banks when required by the Secretary of the Treasury shall
act as fiscal agents of the United States. The Federal Reserve Banks
were charged by the Secretary of the Treasury with the duty of placing issues of short-time Treasury certificates and redeeming them at
maturity. During the latter part of April the Secretary of the
Treasury made public the details of the first bond issue, known as
the Liberty Loan of 1917, and at the same time announced that each
Federal Reserve Bank would be constituted a central agency in its
district for the organization of a bond campaign, for receiving subscriptions and payments, making deliveries, and managing the necessary details. These new duties have brought the banks into more
intimate contact, both with the Treasury Department and with the
banks of their districts, and have also increased their operating
problems. It has been necessary for them to add to their working
space and to more than double their clerical staffs. They have rendered especially valuable service in the prompt flotation of the
various issues of Treasury certificates of indebtedness which, running for short periods only, in anticipation of receipts from the longterm bonds, were placed with banks to a greater extent than with the
investing public.
The initial offering of $50,000,000 of Treasury certificates, in anticipation of income-tax receipts accruing on June 30, was made
before rates for money had advanced and before plans could be
perfected for the subsequent larger operations. Accordingly, at the
request of the Secretary of the Treasury, the Federal Reserve Banks
themselves subscribed for the entire issue, at the rate of 2 per cent
per annum. This constituted their first direct service to the Government in its war financing. This issue, however, was only a beginning.
It was followed by an offering of $250,000,000, at 3 per cent, on April
25, which was quickly distributed by the Federal Reserve Banks
among the member and nonmember banks of their respective districts. Since then these issues have been repeated on eleven subsequent
occasions, four having been made in anticipation of the first Liberty
loan of $2,000,000,000, which was closed on June 15, while six were
anticipatory of the second Liberty loan, subscriptions to which closed
on October 27. A later issue of approximately $700,000,000, in anticipation of taxes due next June, has a longer time to run than the
others and was intended primarily for the convenience of those who
will have taxes to pay on account of incomes and excess profits. Subscriptions were opened during the last days of December by the
Federal Reserve Banks for a new offering of the same character.
While the two classes of certificates appeal to banks and investors
in varying degree, they serve similar purposes. The short-time certificates offered in anticipation of Liberty loan issues have in view
the important object of enabling prospective investors, banks or



4

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

individuals, to anticipate their payments on account of their Liberty
loan subscriptions. The Government in this manner absorbs accumulated savings as they become available and has thus been enabled
to dispose of nearly $6,000,000,000 of long-term bonds without creating at any time disturbance of the money market. In like manner
the certificates issued in anticipation of taxes will serve the purpose
of avoiding stringency conditions during the second half of June,
when it is expected that over $2,000,000,000 of'internal-revenue taxes
will be paid. By placing these certificates of indebtedness with taxpayers, corporations, or individuals as they become prepared to set
aside the amount of their tax liability, payments to the Government
are distributed over several months, and approximately $1,000,000,000
of tax payments have thus been anticipated up to this time, and it
may be expected, therefore, as was the case with the Liberty loan
payments, that the entire payment on account of taxes due in June
will be made without affecting the money market adversely.
In his annual report to Congress the Secretary of the Treasury
made acknowledgment of the services rendered by the Federal Reserve Banks as fiscal agents as follows:
The Federal Reserve system has been of incalculable value during this period
of war financing on the most extensive scale ever undertaken by any nation in
the history of the world. It would have been impossible to carry through these
unprecedented financing operations under our old banking system. The effective
machinery afforded by the Federal Reserve Banks has permitted the Government to execute its plans without a tremor of disturbance. Great credit is due
the 12 Federal Reserve Banks for their broad grasp of the situation and their
intelligent and comprehensive cooperation.

The Federal Reserve Banks have from the first met with a prompt
and hearty response from the member and nonmember banks in
their respective districts, both in the flotation of Treasury certificates
and of the Liberty bonds. The Federal Reserve Banks have cooperated with the Treasury in every possible way to avoid and relieve pressure upon the money market. Under the direction of the
Treasury, and for its account, they have redeposited funds with
subscribing banks and have permitted payments by credit on account
of subscriptions due, passing upon and receiving for the Treasury
the securities given as collateral for these deposits and deferred payments.
Funds accumulating with the Federal Reserve Banks for account
of the Treasury have been returned to the market with as little delay
as possible, whether funds were disbursed in settlement of purchases
made by the United States or deposited with banks acting as agents
for foreign Governments associated with us in the war; or whether
they were redeposited with subscribing banks in order to remain



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

5

available for the usual requirements of trade and commerce. So
effectively and speedily have these funds been returned to the money
market in the manner above described, that the average balances
maintained by the Treasury with the Federal Keserve Banks, considering the volume of business transacted, have been low, the average of balances shown in the Board's weekly statements since April 6
being $145,268,000 for the whole system.
Notwithstanding the facility wTith which the transactions have
been conducted, it is obvious that the shifting of several billion dollars
can not be effected without creating temporary demands for funds
in various places, and wherever these have arisen an adequate measure of relief has been readily afforded by the Federal ^Reserve Banks
through open-market transactions or by means of rediscounts for
member banks.
DISCOUNT POLICY.

Upon the Federal Eeserve Board has fallen the responsibility of
directing the policies of the system so as to insure prompt accommodation to banks whose customers required assistance either in
providing for commercial demands caused by increased business
activities, or in making their payments for bonds, as well as to banks
which bought bonds for their own account. It was important that
there be no disturbance in the money market and that interest rates
should be normal and as1 free as possible from fluctuation. The
Board accordingly, before the subscriptions to the first Liberty bond
issue were closed, and in anticipation of the amendments which became law on June 21, established a preferential rate of discount for
notes of member banks secured by Government obligations, whether
certificates or bonds. As a further means of relief, the Board
authorized Federal Eeserve Banks to discount for nonmember banks,
upon the indorsement of a member bank, notes secured by Government obligations, whether made by the nonmember banks themselves or by their customers, when the proceeds had been or were
to be used for carrying Treasury certificates or United States bonds.
These measures involved modifications in discount schedules and
rates, which may be enumerated as follows:
(1) The establishment of a rate of 3 per cent per annum for the
discount at Federal Eeserve Banks of notes of member banks running not longer than 15 days secured by Treasury certificates of indebtedness, which certificates had been issued at rates varying from
3 to 3£ per cent per annum.
(2) The establishment of a rate of discount at Federal Eeserve
Banks of 3£ per cent per annum for customers' notes running up
to 90 days, secured by Government obligations and indorsed by mem


6

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

ber banks, when such notes had been made for the purpose of obtaining funds for the purchase of Government obligations.
(3) The authorization of Federal Reserve Banks to discount for
member banks, on behalf of nonmember banks, notes of nonmember
banks or their customers, secured by Government obligations, for
the purpose of obtaining funds with which to purchase United
States bonds or notes.
(4) The establishment of a one-day rate of from 2 to 4 per cent at
Xew York for the purpose of restoring to the market, funds temporarily withdrawn through Government loan operations.
In addition, a general assurance was given savings banks and trust
companies that the Board desired in every way to cooperate with
them in avoiding stringency and that the Federal Reserve Banks
were prepared to extend through member banks every reasonable
accommodation not inconsistent with law for the purpose of relieving
any strain which might result from withdrawals of deposits for
purchases of Government securities.
The rediscount policy of the Board, which was intended to assist
those desiring to subscribe for the first Liberty loan by assuring
banking accommodation pending the payment in full of their subscriptions, was amply justified by results. As nearly as can be
ascertained, scarcely more than $300,000,000 of the loan was actually
subscribed by banks for their own account, and of this amount a very
large part was quickly transferred to private investors who had not
originally subscribed for or been allotted all the bonds they desired
to obtain.
The amount of rediscounts at Federal Reserve Banks of notes secured by Government obligations reached its maximum of $83,185,000
on June 22, one week after the closing of subscriptions for the loan,
but these notes were paid off so rapidly that the total of such rediscounts had on August 17 fallen to $11,051,000. Reports from all
sections of the country indicate that only a comparatively small percentage of the first issue of Liberty bonds is now being carried upon
a long-term installment basis, and that as a rule both banks and
private investors were able, within a few weeks, to pay for the securities wThich they agreed to take.
EFFECT OF ADDITIONAL LOANS.

The services rendered by the Federal Reserve Banks during the
second Liberty loan campaign, which began on October 1 and ended
on October 27, were even more marked than in the first instance.
The experience which had been gained on the former occasion, the
fact that more time had been afforded for efficient organization, a
better understanding by the people of the merits of Government
bonds as an investment, and a general awakening of a sense of patri


ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

7

otic duty all combined to bring about the vigorous cooperation of
the public generally. The arrangements previously made to accommodate the banks and their customers who desired to subscribe to
Government bonds remained effective, and there were no changes
in discount rates, notwithstanding the advance of one-half of 1 per
cent in the rate of interest carried by the bonds themselves, until
the close of November and the middle of December, when general
advances of from | to 1 per cent in rates of Federal Reserve Banks
were made.
The fact that the second loan, as offered to the public, was 50 per
cent greater than the first, while actual subscriptions received were
in an even greater proportion, naturally increased very substantially the operations of the Federal Reserve Banks in discounting
paper secured by Government obligations. The total of such paper
discounted at the Federal Reserve Banks reached a maximum on
November 30, when the aggregate amount of notes under discount
secured by Government obligations was $499,265,000. On December
28 the total amount of discounts of this character had been reduced
to $283,421,000, but the greater part of this reduction was due to
the payment of maturing Treasury certificates, and there is as yet
nothing to indicate that transfers of bonds to investors have been
made to so great an extent as was the case with the first Liberty loan.
Experience during the year with these operations and an analysis
of the consequent changes in the banking situation demonstrate how
greatly the entry of the United States into the war has increased the
responsibility of the Federal Reserve system in its relations to the
Treasury and to the public. Not only have new duties devolved
upon the Federal Reserve system, but it has been made more directly
responsible for the banking situation as a whole. The Federal Reserve Board is not responsible for the financial policy of the Government, except in so far as the Secretary of the Treasury may choose
to call upon its members for service in an advisory capacity. The
Board, however, is charged by law with the exercise of a general
supervision over the Federal Reserve Banks, both as to their ordinary
business and with respect to their functions as fiscal agents of the
Government. In the latter capacity they are undertaking grave
duties and responsibilities, and their activities are of such scope
that any administrative mistakes or errors of judgment might entail
serious consequences. This responsibility is fully appreciated by
the Board, which, while it has been actuated by a desire to do all in
its power to give the country every advantage accruing from the
financial resources of the Federal Reserve system, has constantly
realized that its primary duty is to maintain the system in the
strongest possible position.



8

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The discount policy of the Board has accordingly been governed by
these two considerations. It was necessary, in order to facilitate the
operations of the Treasury, that discount rates at the Federal Reserve
Banks be maintained on a basis in harmony with the low interest rates
borne by the Government loans during the period from the beginning
of war down to the completion of the second Liberty loan. It was
fortunate that this policy could be carried out without infringing too
greatly upon the resources of the Federal Reserve Banks, for it is
obvious that any advance in rates paid by the Government on its
obligations was necessarily gradual, moving up from 3 per cent,
the rate paid on the certificates issued in May, to 3J per cent and
later to 4 per cent, the rate carried by the second Liberty loan issue.
A more gradual advance might have endangered the success of the
financial operations of the Treasury, while a more rapid movement
might have brought about a convulsion in the securities market.
As the rates on Government issues advanced it became feasible for
the Federal Reserve Banks to raise their rates. These rates were
advanced after the banks had responded fully to all calls made
upon them during the period when the first and second installments
were being paid in on account of subscriptions to the second Liberty
loan. It is obvious, however, that it must now be the serious concern
of the Board to strengthen the reserves of the Federal Reserve Banks
by having them reduce their investments before the opening of the
next Liberty loan campaign.
WAR-TIME BANKING.

Since the beginning of the war, and more especially since the entry
of this country into the war, deposits in banks have increased enormously, but it should be remembered that loans and discounts and
investments have increased in an even greater degree. The country's
gold holdings in three years have increased more than a billion
dollars and are now larger than those of any other country, but at
the same time the percentage of gold reserve against deposits has
decreased. These conditions are not unusual in times of war, and
to a certain extent they can not be prevented, but the banks of the
country should make it their business to keep these tendencies under
control and to prevent too rapid an expansion of credits as far as
possible without placing in jeopardy the supreme object of our
national effort—the winning of the war. We should realize that
in the accomplishment of this purpose the conservation of our
economic and financial strength is just as important as the augmentation of our military power, and that upon this conservation our military strength depends. There must be a conservation of credit as
well as of goods, and credit, generally speaking, should not be used
except where it is required for the common welfare, as in planting




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

9

crops, the manufacture of necessary articles, the extension of transportation facilities, or in such construction work as may be essential
in bringing about increased production. Limitation in ordinary lines
of credit is necessary to make room for the credits required by the
Government for the purchase of supplies essential for war purposes.
It must be expected that the war activities of the Government will
bring about a further expansion of deposits and loans in banks, and
in order to keep our credit structure strong it is necessary that the
banks should exert their influence and lend their energies to a
more general absorption of Government loans by savings, and to
limitation of private credits wTherever practicable without causing
hardship. We must look to the future and prepare unceasingly for
further demands which may be made upon us. The products of the
fields, the forests, the mines, and the manufacturing establishments
of the country are not, generally speaking, in the nature of luxuries.
They can, as a rule, be classed as necessaries, and with the outlook
ahead of us there seems to be no possibility of overproduction. It
seems, therefore, that the banks of the country, from the standpoint
of good business as well as from patriotism, should lend their funds
and credits freely to those engaged in these productive enterprises,
and their power to serve the country in this way will be increased by
the curtailment of unnecessary credits and by the adoption by the
people generally of a policy of common sense practical economy.
NEED OF COOPERATION.

The Federal Reserve act as amended last June provides that State
banks admitted to membership may retain substantially all of their
statutory and charter powers. Thus State-bank members are governed by their own State laws and remain under the supervision of
their State banking departments. Their interest rates and the limitations upon their loans are determined entirely by State law. There
are hundreds of good banks throughout the country not yet members,
but which are eligible for membership, and it seems proper to refer
here to a statement issued by the President of the United States on
October 13 last in which he called attention to the fact that " the
extent to which our country can withstand the financial strains for
which we must be prepared will depend very largely upon the
strength and staying power of the Federal Reserve banks," and in
which he urged the importance of developing our banking power to
the maximum degree and of providing financial machinery adequate
for the very great financial requirements imposed upon our country
by reason of the war. He pointed out that all banks should cooperate
in strengthening the position of the Federal Reserve system, thereby
strengthening the Nation's banking power, and urged upon every
bank officer and director to consider the question of membership in
the Federal Reserve system as a " solemn obligation."



10

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Since the date of the President's statement the banking departments of nearly all of the States have expressed approval of membership in the Federal Eeserve system on the part of the banks under
their supervision, and the response of the banks has been most gratifying. However, the legal requirements in a number of States prohibit or militate against the cooperation of State banks and trust
companies with the Federal Eeserve system, making it impossible
or impracticable for them to become members or to exchange their
gold for Federal Eeserve notes. The Board would suggest to the
banks in these States that efforts be made to obtain such legislative
action as may be necessary to enable them to cooperate with the
system.
DISCOUNT RATES.

The discount rates of the Federal Eeserve Banks have an important bearing upon the problems of Government financing and upon
the condition of the banks of the country as a whole. Since the
first adjustment of discount rates, effective shortly after the organization of the Federal Eeserve Banks, changes have been comparatively infrequent and have been discussed in previous reports. At
the beginning of the year 1917 money was in abundant supply and
discount rates were low. The expectation of some that the entry of
the United States into the war would cause an abrupt advance in rates
was not realized. While market rates have advanced substantially,
the process has been gradual, and there were no changes made in the
rates of Federal Eeserve Banks until the flotation of the first Liberty Loan was well under way. Then, in order to facilitate the disposal of the bonds, the Board indicated to the Federal Eeserve
Banks that it would be desirable to establish preferential rates in
favor of notes secured by Government obligations. In the case of
such paper, as with ordinary commercial paper, a distinction was
made between short maturities and those running for a longer period.
Accordingly, notes of member banks running not longer than 15 days
and secured by Government obligations, were in general put upon a
3 per cent basis, while 90-day paper, secured in the same way, was
given a rate of 3 | per cent, which rates were about one-half of
1 per cent below the rates fixed for ordinary commercial paper of the
same maturities.
Because of the generous cooperation of many banks throughout the
country in making advances to purchasers of Government bonds at
the same rate of interest as that carried by the securities, these bond
purchasers have had the full advantage of the facilities afforded by
Federal Eeserve Banks in the rediscount of their notes. A firmer
tendency became apparent during the summer at some of the financial centers, and the 4 per cent rate borne by the second Liberty Loan



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

11

(one-half per cent more than the first) suggested the desirability of
a general advance of one-half of 1 per cent in Federal Reserve discount rates. As already stated, this advance has been made, but the
differential in favor of paper secured by Government obligations is
still maintained. The discount schedules have been consolidated and
simplified by reducing the number of separate classifications.
In connection with the revision of rates, it was deemed proper to
merge with the ordinary commercial rates the special rate which was
made in the summer of 1915 for paper secured by warehouse receipts
for staple and readily marketable products of a nonperishable character, known as commodity paper. The continuance of this rate,
which had been made originally for the purpose of assisting the orderly marketing of crops in order to avoid speculation and violent
fluctuations, had become unnecessary because of the great advance
in the price of agricultural products, and because of the policy of
price control adopted by the Government. Changed conditions made
it desirable that these products should move steadily to market, and
it seemed best in the circumstances not to encourage their unneeess^ry holding by producers or middle men. Complete tables showing
these changes in discount rates, are appended to this report.
EFFECT OF THE AMENDMENTS OF JUNE 21.

The amendments to the Federal Reserve Act which became law on
June 21 last, were most opportune, as they added greatly to the
ability of the Federal Reserve system to assist in meeting the financial requirements of the Government, and to exercise a controlling
influence in the money market, just at a time when much larger demands were being made upon it because of war financing. The
amendments are substantially those recommended by the Board in
its last annual report, and have brought about greatly increased
holdings of gold in the Federal Reserve Banks, and more active cooperation on the part of State banks and trust companies, many of
which, attracted by the more favorable conditions of membership,
have now allied themselves with the system.
The process of issuing notes has been simplified by permitting
their issuance- against both gold alone and gold and eligible paper as
security—the gold thus acquired being permitted to be counted as a
part of the required gold reserve against notes. The effective gold
holdings of the Federal Reserve Banks have thus been greatly augmented and their discount power commensurately increased, while
the capacity of the system to adapt its operations more closely to the
changing requirements of the public has been greatly enlarged.
As a result of these changes the Federal Reserve note will more
speedily attain the position originally intended for it; from being
an occasional emergency currency used to supplement deficiencies in
34365°—18




2

12

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

the suppty of other existing forms of currency, it is becoming the
most important constituent of our circulating medium responding
promptly and naturally to currency requirements from whatever
source proceeding, thus promising to give to our whole currency a
kind and degree of elasticity it has never before possessed. When
issued against gold the Federal Reserve note virtually functions as a
gold certificate, taking the place in the circulating medium of the
amount of gold for which it was exchanged. When issued against
commercial paper it has more of the character of bank credit currency. In times when trade is active and the country needs increased
currency the Federal Reserve note will be issued in increasing degree
against commercial paper as collateral. In times of slackening demand for currency, commercial paper will be withdrawn and gold
deposited in its place to provide for the redemption of notes which
have been issued to the member banks. While giving greater flexibility to the Federal Reserve note, the recent amendments have not
changed its security, for, as provided in the original act, the Federal
Reserve note remains covered by an equivalent value in gold, or gold
plus commercial paper held in trust for the public by the Federal
Reserve agent as the representative of the Government.
Amendments to the act have also changed the former reserve requirements for member banks by fixing them at 13 per cent, 10 per
cent, and 7 per cent for central reserve city, reserve city, and country
banks, respectively, and have, at the same time, strengthened the
position of the Federal Reserve Banks themselves by requiring the
maintenance with them of the member banks' entire reserves in collected funds, the amount and character of vault cash to be carried
by a member bank being left to its discretion, as determined by actual
needs. This change, together with the complete transfer of reserves
prior to the expiration of the time limit set by the original act,
involved the transfer of a large amount of actual money to the
Federal Reserve Banks. The termination of the period when funds
deposited with banks in reserve cities might be counted as reserve
for country banks would not, for reasons explained in the Board's
last annual report, have made necessary any material transfer in
cash, but the new reserve requirements led to the shifting of about
$250,000,000 and a corresponding increase in the cash holdings of
Federal Reserve Banks.
Another amendment included in the act of June 21 permits nonmember banks to open, for exchange or collection purposes, accounts
with Federal Reserve Banks, thereby availing themselves of the
facilities of the check clearing and collection system. This change,
at the outset, increased still further the cash holdings of the Federal Reserve Banks, as several large nonmember institutions opened
accounts of this kind with Federal Reserve Banks. Most of these



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

13

institutions have since become members of the system, so that the
balances now carried by nonmember banks are relatively small,
amounting on December 31 to $16,480,000. The gain in actual cash
by Federal Reserve Banks, following the amendments, may be best
demonstrated by a comparison of their condition on June 1 (three
weeks before the amendments were adopted), with their condition on
August 3. On the earlier date the gold and lawful money held by
Federal Reserve Banks and by Federal Reserve agents amounted
to $933,427,000, while on the latter date the total was $1,421,382,000,
and for the same period the free gold—that is, the surplus over
required reserves—increased $300,000,000.
MEMBERSHIP OF STATE BANKS.

Second only in importance to the change in the reserve and note
issue provisions of the law must be reckoned the amendment to section 9, under which State banks and trust companies may become
members of the Federal Reserve system and retain at the same time
their full charter and statutory privileges. The law as originally
enacted gave the Federal Reserve Board discretionary powers as to
the conditions under which State banks and trust companies might
become members of the Federal Reserve system. In formulating
regulations for the admission of State institutions the Board had to
choose between two policies. It could stipulate that State banks in
becoming members should conform to the requirements made upon
national banks, or else it could admit them upon conditions which
would leave them undisturbed in the free exercise of their charter
rights and privileges as far as might be consistent with conservative
banking. The Board chose to adopt a liberal policy in dealing with
the State banks and trust companies, while committing itself to the
principle that greater powers should be given national banks in order
that there might be, as far as practicable, a basis of equality between
all member banks. The Board accordingly issued regulations which
were liberal in their terms, both as to the admission of State banks as
members and as to their rights to withdraw at their discretion. But
there had always been a question in the minds of many as to the
permanence of these regulations in the absence of definite statutory
guaranties. The action of Congress in confirming what the Board
had attempted to accomplish by regulation has given State banking
institutions firm assurance that they may continue to carry on their
lawful banking business in substantially the same way as they have
heretofore done, without fear of future changes in methods prescribed, and it has given them in addition the definite right to withdraw from the system upon six months' notice, subject to conditions
which they regard as reasonable.
The inducement to the State banks to become members of the
system thus held out by the amendment to section 9 of the act was



14

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

further strengthened by an opinion of the Attorney General of the
United States rendered on September 10, in which he expressed the
view that this amendment, in reserving to the State banks as members their full statutory and charter powers, released them from the
restrictions of section 8 of the Clayton Act, as to interlocking
directors, to which they had been previously held to be subject, in
common with the national banks. Just at a time when the principal
obstacles which had previously stood in the way of the enlargement
of the system by State bank membership were thus overcome by
statute and by authoritative legal interpretation, an additional
incentive was given the State banks and trust companies to apply for
membership in the system by reason of the rapid development of the
Government's requirements in war financing, the patriotic desire to
assist in meeting and supplying these needs, and an appreciation of
the added safety to themselves resulting from membership. Compelling reasons for membership in the system from a patriotic standpoint were brought to the attention of all the banks in a strong statement by the President on October 13, to which reference has already
been made. Under all these influences many of the strongest State
banks and trust companies in the United States have filed their applications and have been admitted to membership. At the time of the
passage of the amendatory act 53 State banks and trust companies
were members of the system, but on December 31 membership had
been increased to 250. The aggregate capital and surplus of the
member State banks and trust companies was on that date $525,205,530
and aggregate resources of about $5,000,000,000, as compared with
$78,491,165, and $825,000,000 on June 21. It is estimated that the
membership of the Federal Reserve system represents at this time
about 75 per cent of the total commercial banking assets of the
country. Thus it is evident that substantial progress has been made
toward the complete unification of our banking system.
A table showing the titles, dates of admission, capital and surplus, and aggregate resources of State bank members appears in the
appendix.
CREDIT EXPANSION.

Great as is the admitted power of the Federal Reserve system,
equipped with its new resources and supported by the greater part
of the banking reserve of the country, there are, nevertheless, limits
to its capacity. During the past year there have been, very naturally, some expressions of anxiety on the part of the financial community as to expansion of credits. The Board has fully recognized
the dangers of overexpansion and has endeavored in every way not
hurtful to war financing to prevent such a condition. The question
as to how far expansion may drift toward the danger point, despite
concentration and careful use of our banking resources, should be



15

ANNUAL BEPORT OF THE FEDERAL RESERVE BOARD.

carefully considered in the development of a sound policy for the
future. The following tabulation of combined statements of the
12 Federal Reserve Banks shows the changes in the reserve position
of the Federal Eeserve system during the year, the figures being as
of December 30, 1916, March 30, June 29, August 3, November 2,
and December 28, 1917, the four dates last named reflecting the
changes directly attributable to the flotation of the Liberty loans:
Combined resources and liabilities of the Federal Reserve

system.

[000 omitted.]
Dec. 30,
1916.

Mar. 30,
1917.

June 29,
1917.

Aug. 3,
1917.

Nov. 2,
1917.

$283,091
170,470

$374,903
200,061

$484,264
345,845
52,362

$399,785
438,153
52,500

$501,311
378,514
52,500

$499,917
317,520
52,500

Total gold held by banks
Gold with Federal Reserve agents
Gold-redemption fund

453,561
282.522
1,703

574,964
360,668
2,414

882,471
402,693
9,402

890,438
467,845
9,390

932,325
602,433
11,317

869,937
781,851
19,345

Total gold reserves
Legal tender notes, silver, etc.
Total reserves.
Bills discounted—members and Federal
Reserve banks
Bills bought in open market
Total bills on hand
United States Government long-time securities
United States Government short-time securities
Municipal warrants
Loans on gold coin and bullion.

737,786
19,325

938,046 1,294,566 1,367,673 1,546,075
9,282
39,840
50,744
53,709

1,671,133
49,635

757,111

947,328 1,334,406 1,421,382 1,596,819

1,720,768

Dec. 28,
1917.

A.—KESOURCES.

Gold coin and certificates in vault..
Settlement fund
Gold with foreign agencies

Total earning assets.
Due from other Federal Reserve Banks, net.
Uncollected items
Total deductions from gross deposits.
Redemption fund against Federal Reserve
bank notes
Other resources

28,552
128,956

20,106
84,473

197,242
202,270

130,948
174,183

503,965
186,012

680,706
275,366

157,508

104,579

399,512

305,131

689,977

956,072

44,247

29,275

36,426

42,422

53,851

48,350

11,167
8,974

18,425
15,715

34,302
2,446
21,850

25,464
1,249

45,211
1,267

58,883
1,005

221, g

167,994

494,536

374,266

790,306

1,064,310

44,543

2,275
132,759

1,448
221,705

4,746
197,058

14,383
317,901

11,976
301,067

44,543

135,034

223,153

201,804

332,284

313,043

400
6,544

400
5,393

500
799

500
492

537
1,588

537
2,813

1,030,494 1,256,149 2,053,394 1,998,444 2,721,534

3,101,471

•

Total resources.
B.—LIABILITIES.

Capital paid in
Government deposits
Due to members—reserve account
Member bank deposits, net
Collection items
All other deposits, including foreign government credits
Total gross deposits.
Net deposits
Federal Reserve notes in actual circulation.
Federal Reserve Bank notes in circulation,
net liability
All other liabilities
Total liabilities
Ratio of gold reserves to net deposit and
Federal Reserve note liabilities combined
Ratio of total reserves to net deposit and
Federal Reserve note liabilities combined



55,694
27,662

56,075
57,176
57,881
64,291
20,567
300,966
56,765
175,912
720,411 1,033,460 1,192,887 1,372,023

70,442
108,213
1,453,166

671,793
149,527

132,053

191,811

1,000

14,269

25,310

17,965

841,939 1,484,953 1,395,974 1,765,056

1,771,037

654,912

706,905 1,261,800 1,194,170 1,432,772

1,457,994

274,796

357,610

508,807

540,785

881,001

1,246,488

525

934
1,524

2,828
976

8,000
3,186

8,000
5,504

1,030,494 1,256,149 2,053,394 1,998,444 2,721,534

3,101,471

100,961

9,455

549

191,689

79.4

73.2

78.9

61.8

81.4

75.4

81.9

63.6

16

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

From the foregoing it will be noted that the increase in the total
invested funds grouped as bills discounted and bought, during the
months intervening between the beginning and the close of the year
1917, is about $798,564,000. Of this sum, $515,143,000 is represented
by purchase or discount of commercial paper, the remaining $283,421,000 representing the discount by the banks of paper secured
by Government obligations, for the purpose of enabling buyers of
bonds and certificates to carry them during the period necessary for
the liquidation of their own obligations thus incurred. The reduction
in the reserve percentages of the Federal Reserve Banks against notes
and deposits was most marked during the periods between March 30
and June 29 and between August 3 and November 2. During the
month of July* there was a notable strengthening of the reserve
position, but a similar recovery subsequent to the closing of the second
Liberty loan had not taken place up to December 31.
Taking the year as a whole, it will be noted that, although there has
been a great increase in the total assets of the system, there has been
a reduction of gold and lawful money reserves from 81.4 per cent at
the beginning, to 63.6 per cent at the end of the year, but it should
not be overlooked that the figures for December 28, 1917, represent
the condition existing at a time when the process of distributing the
second Liberty loan was still uncompleted. The question whether
the final absorption by the ultimate investor of the second Liberty
loan and the resulting financial adjustments would bring about as
favorable a situation as that which existed at the closing of the first
loan, is still an open one, but indications are that there will be a
larger amount of bonds left in the hands of the banks and that a
correspondingly greater volume of discounts secured by Government obligations may remain with the Federal Reserve Banks than
was the case at the close of the first Liberty loan. The existing
condition is susceptible of improvement and will be improved as the
public performs its duty of absorbing the Government loans out of
savings. The position of the banks with respect to credit expansion is indicated by the condensed statement of the deposits, loans,
discounts, and investments of the national banks as reported to the
Comptroller of the Currency on November 20, 1917, as compared
with corresponding figures on December 31, 1914; November 10,
1915, and November 17, 1916.
[In thousands of dollars; 300 omitted.]
Dec. 31,1914. Nov. 10,1915. Nov. 17,1916. Nov. 20,1917.

Deposits, net, on which reserve is computed.
Loans and discounts, including overdrafts.
United States bonds. .
Other stocks, bonds, and securities *
1

6,668,325
6,363,435
791,995
1,313,787

8,256,662
7,241,140
777,765
1,343,822

9,976, 980
8,355, 101
7?4, 473
1,747, 794

10 ,348, 800
9 ,550, 571
22 ,354 183
1 ,949, 619

Exclusive of Federal Reserve Bank stock.
2 Includes United States certificates of indebtedness and payments on account of subscriptions for
Liberty loan bonds.



ANNUAL KEPOBT OF THE FEDERAL RESERVE BOARD.

17

It is proper to point out that while, during the year 1917, there
has been a lessening of the fluidity and immediate availability of
the country's banking resources, the change is not surprising when
there is considered the extent of the requirements which have been
made upon our banking system. It is evident also, from an analysis
of the figures, that the decrease in reserve strength is attributable only
in a minor degree to normal commercial discounts and that it is
mainly the result of Government financing and the consequent demands upon our resources.
What effect the credit expansion which has taken place in the
United States during the past year and the years preceding—since
the beginning of the European war—may have exerted on prices
should not pass unnoted. Wholesale prices are estimated by the
Bureau of Labor Statistics to have advanced during the year 1917
by about 24 per cent, which may be compared with an estimated
advance of 47 per cent from July, 1914, to December 31, 1916. Eetail
prices of principal articles of food are shown by the same office to
have risen 23 per cent between July 15, 1914, and December 15,
1916, and 24 per cent between the latter date and December 15, 1917.
The fact that there has been a rise of the general price level is
incontestable. Indeed, it has recently become the subject of general
observation and comment. There is, however, difference of opinion
as to the precise degree of influence to be attributed to the several
factors which have produced the result. The entire world is passing
through a period of prof ound economic disturbance. In many of the
richest producing countries a large part of the able-bodied population has been withdrawn from productive employment for service in
the Army. Industry has suffered much dislocation and disorganization. Overseas trade has been suspended or interrupted. There
has been much destruction of industrial capital and an enormous
consumption of products by the armies. Inevitably, such a condition,
involving either an absolute or relative shortage of many primary
materials and necessaries, must have advanced values and prices to a
very appreciable extent, even had there been no considerable change
in the volume of credit and currency0
In thus stating the influence upon prices of unprecedented industrial conditions the Board would not, however, convey the impression that it does not appreciate to its full importance the effect on
recent price movements of the rapid and abnormal growth of the
volume of credit created by all the warring nations. Indeed, so
alive is the Board to the dangers that attend this phenomenon that
it regards it as one of its most important duties to prevent, as far
as practicable, expansion of banking credit from running an uncontrolled course.



18

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Banking expansion, it may be admitted, is an unavoidable incident
of war finance, but every effort should nevertheless be made to counteract it as far as possible by limiting banking credit not clearly
needed for the purpose of producing or carrying goods necessary for
the life of a Nation at war. Goods and credit must be saved to the
utmost of our ability in order to check the upward movement of
prices and in order to free for the use of the Government the goods
and savings required for the winning of the war.
To encourage and to foster necessary business and to discourage
and curtail unnecessary business must be our national endeavor, and
will require the intelligent and zealous cooperation of the banking
community. The problem of exercising an effective and proper control over credit involved in the public offering of securities does not
present great difficulty. An effective and proper control over individual credits no doubt offers greater, though not insurmountable,
difficulties. How to accomplish these results without bringing about
unnecessary hardship or acute disturbance or injustice is a matter
that will receive the close study and attention of the Federal Reserve
Board.
PRIVATE AND CORPORATE FINANCING.

A feature of the banking and financial situation which has been
developing during the past year, and to which the attention of the
Board has been frequently directed, is the position of firms and
private corporations having short-term obligations maturing in the
near future, and which have been accustomed to procure accommodations upon terms not now obtainable. The action of the President
in taking control of the railroads and the plans outlined by him for
maintaining their revenues and their credit have disposed for the
present of a most serious financial problem, but there remains to be
considered the question of meeting the requirements of many corporations heretofore accustomed to appeal to the securities market for the
purpose of providing themselves with necessary capital. The effect
of the Government's borrowing on a very large scale has been to withdraw from the market a large proportion of the funds normally
available for other short term or long term loans.
The adverse influence thus exerted upon the loan and investment
market is necessarily incidental to heavy Government operations of
this kind. The resulting situation is more or less disturbing to all
who have been accustomed to resort to banks for loans on collateral,
but it is particularly distressing to the larger borrowers who rely
upon the securities market. The situation has been further complicated by the continuous return of our securities from Europe, and
by a comparatively large volume of obligations of foreign Governments carried by member and nonmember banks, resulting in a dimi


ANNUAL REPORT'OF THE FEDERAL RESERVE BOARD.

19

nution of their percentage of liquid assets. These conditions are reflected in the requests which the Board has for some time past been receiving from many quarters that the rediscount privilege be extended
to paper of a character and form which had never been regarded
as eligible. Perhaps the most urgent appeal of this kind has been
that the Board permit Federal Reserve Banks to discount notes
which have been placed upon the market under an agreement between
the borrowers and their bankers, providing for a considerable number of successive renewals, the advances having been made to the
borrowers for a definite term of years. Had the Board permitted
such paper to be rediscounted, Federal Reserve Banks would in a
short time have been burdened with paper which the makers did not
expect to liquidate at maturity. The discount of paper based upon
such an agreement for repeated renewals is not consistent with the
underlying principles of the Federal Reserve Act, and the Board
had no hesitation in stating that it did not regard paper subject
to such agreements as a proper investment for Federal Reserve
Banks. The Board's attitude does not imply any question of the
legitimacy of the purpose for which the funds were desired, or of
the inherent soundness of the paper itself, but rather that such transactions are not of a kind which Federal Reserve Banks ought to facilitate, as they should never overlook their obligation to preserve the
genuine and liquid character of their assets.
Other propositions of a somewhat similar character were submitted to the Board for consideration, and their significance is that
there is pressure on the part of commercial and manufacturing enterprises to gain access to the rediscount facilities of the Federal Reserve Banks and use the system to supply funds which, properly
or in normal circumstances, should be provided by the securities
market. The policy of the Board, however, has invariably been to
interpret and apply the law in accordance with its manifest intent and
underlying principles, with the end in view always of safeguarding
and maintaining the liquid character of the assets /of the Federal
Reserve Banks. This duty, always present, has become imperative
because of the fact that the entire reserves of the member banks, so
far as based upon legal requirements, are now, by the act of June
21, 1917, carried on the books of the Federal Reserve Banks. Upon
these banks and upon the Federal Reserve Board, therefore, falls the
responsibility for the maintenance of a liquid condition, and upon
them will justly fall censure for any unauthorized use of these reserve
funds which are held under a trusteeship of the highest character.
Therefore, in no circumstances, can the Board admit the eligibility
of paper, by whomsoever made, which in its essential character
fails to conform to sound banking principles and to the provisions



20

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

of the Federal Reserve Act. In making this statement of its attitude, however, the Board does not ignore or overlook the very serious
problems which now confront private enterprises in providing for
their financial requirements both as to new money and maturing
obligations.
Eeference has already been made to the position of the savings
banks and investment institutions in general. Undoubtedly some
effective measure, not so much of actual relief as of organization to
afford relief if required, is desirable, and if made available will be of
great benefit to the banking situation.
The resulting problem is one which does not come within the scope
of the Federal Reserve system, but it is nevertheless one to which
the Board can not be indifferent, because, until some satisfactory
solution is found, it will be under pressure to sanction practices and
to make rulings designed to open the resources of the system to
uses manifestly foreign to the intent of the act. The Board therefore respectfully suggests early consideration by Congress of the
problem of corporate financing in the belief that no satisfactory solution will be found that does not involve some degree of governmental
intervention. The Board is of the opinion that some plan for governmental intervention or aid can be worked out which would meet the
requirements of the situation satisfactorily.
CONSERVATION OF GOLD.

As a result of the entry of the country into the war and of the
large credits given the allied Governments there was an almost
complete cessation of the movement of gold to this country
which had been continuous since the early months of the year 1915.
In fact, the movement had begun to slacken as early as November, 1916. Foreign Governments had found it convenient to liquidate
their obligations due in other countries by purchasing remittances
in our own markets, frequently against credits opened by our banks
or by our Government. The aggregate trade balance has continued
in favor of this country, even though balances are against it in
some cases. During the second quarter of the year there developed
a strong tendency to withdraw gold by those neutrals whose supplies of raw materials had been drawn upon by our own Government
and by other Governments associated with us in the war, and during
the months of June, July, and August, our net loss of gold amounted
to about $100,000,000. The movement of gold having already been
restricted in all of the belligerent countries, demands for it in settling
international accounts, in adjusting exchange rates, and in strengthening reserves, were naturally made in our own markets.



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

21

As the movement began to assume larger proportions, the President, on September 7, issued a proclamation to the effect that—
" except at such time or times, and under such regulations and orders,
and subject to such limitations and exceptions as the President shall
prescribe, until otherwise ordered by the President or by Congress,
the following articles, namely: Coin, bullion, and currency shall not,
on and after the 10th day of September, in the year 1917, be exported
from or shipped from or- taken out of the United States or its territorial possessions * * *."
By Executive order of the same date the President directed that—
" 1. Any individual, firm, or corporation desiring to export from
the United States or any of its territorial possessions to any foreign
country named in the proclamation dated September 7, 1917, any
coin, bullion, or currency, shall first file an application in triplicate
with the Federal reserve bank of the district in which such individual, firm, or corporation is located, such application to state under
oath and in detail the nature of the transaction, the amount involved,
the parties directly and indirectly interested, and such other information as may be of assistance to the proper authorities in determining
whether the exportation for which a license is desired will be compatible with the public interest.
" 2. Each Federal reserve bank shall keep a record copy of each
application filed with it under the provisions of this regulation and
shall forward the original application and a duplicate to the Federal
Reserve Board at Washington together with such information or suggestions as it may believe proper in the circumstances and shall in
addition make a formal recommendation as to whether or not in its
opinion the exportation should be permitted.
" 3 . The Federal Reserve Board, subject to the approval of the
Secretary of the Treasury, is hereby authorized and empowered upon
receipt of such application and the recommendation of the Federal
reserve bank, to make such ruling as it may deem proper in the circumstances and if in its opinion the exportation in question be compatible with the public interest, to permit said exportation to be
made; otherwise to refuse it."
In pursuance of this order the Federal Eeserve Board, with the
approval of the Secretary of the Treasury, issued regulations governing the administrative procedure with regard to the exportation
of coin, bullion, and currency,1 and now considers and passes upon
all applications for such shipments.
Applications for permission to ship gold to European neutral
countries have, except for a few days following the date of the
order, been invariably declined. A different problem, however,
presented itself in the case of applications for shipments of gold
to the Orient, to Canada, to Mexico, and to South American countries, which had been furnishing necessary raw materials. It was




1

See page 183.

22

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

deemed important to continue these trade relationships, while reducing shipments of gold to a minimum. For a short time gold
shipments were permitted to go to India, in order to give importers
reasonable time to adjust themselves to the new conditions. Silver
has been permitted to flow freely to the Orient as a means of payment for Asiatic balances. In addition, as a result of negotiations
between the Treasury Department and representatives of the Indian
Government, provision has been made for rupee exchange to the
extent of 10,000,000 rupees, which were allotted by Federal Reserve
Banks to importers according to their necessities.1 In a few cases
shipments of gold are being permitted to South American countries,
although it is hoped that arrangements can be concluded at an early
date which will facilitate exchanges with the.se countries and obviate
the necessity of making further gold shipments in any considerable
volume.
Applications for shipments of gold into Mexico have been granted
only for Government account and in cases where such shipments
have been shown to be necessary to effect the importation into the
United States of necessary products. The exportations have been
limited, as far as possible, and the greater part of the gold which has
been shipped has been applied to the payment of Mexican export
duties and to meeting the requirements of Mexican law as to the
return into Mexico of the value of the full gold content and 25 per
cent of silver content of ores and bullion exported from Mexico.
Each application has been considered upon its own merits, the Board
having given notice in its regulations dated September 21, 1917, that
the granting of any specific application would not constitute a
precedent. In considering applications the Board has adhered
strictly to the principle laid down in the Executive order that if,
in its opinion, the exportation applied for was not compatible with
the public interest it should be refused, and has acted also in close
cooperation with the State and Treasury Departments and the War
Trade Board.
Foreign exchange rates have been abnormal throughout the year,
and in many of the countries which send us necessary material,
American bills are at a heavy discount due partly to the restrictions
placed on our export trade and partly to the adverse trade balances
of countries associated with us in the war. The Board is making
a close study of our trade relationships with neutral countries and has
secured the services of Mr. Frederick I. Kent, of New York, as its
foreign exchange adviser.
1
Later an additional credit of 10,000,000 rupees was arranged, and since Jan. 1, 1918,
an exchange agreement with the Government of Argentina was entered into.




ANNUAL BEPOBT OF THE FEDERAL RESERVE BOARD.

23

CLEARING AND COLLECTION.

The volume of checks handled by the Federal Reserve Banks during the year has increased enormously, although there have been no
great additions to the number of nonmember banks which remit at par
to Federal Reserve Banks. Section 13 of the act was amended last
June as recommended by the Board, so as to allow Federal Reserve
Banks to receive accounts for collection and exchange purposes from
such nonmember banks and trust companies as may agree to remit to
Federal Reserve Banks at par for checks drawn upon themselves and
which will, in addition, maintain balances with the Federal Reserve
Bank sufficient to offset the items in transit held for their account by
the Federal Reserve Bank. Comparatively few nonmember banks
have, however, availed themselves of this privilege, and the Federal
Reserve Banks are still unable to collect checks drawn on many nonmember banks except at heavy expense. An effort was made, in the
interest of some member and nonmember banks to amend the act by
providing for a standardized exchange charge not to exceed onetenth of 1 per cent, to be made by member banks against Federal Reserve Banks for checks sent for collection. It was not successful, and
the act as finally amended provides that a member or nonmember
bank may make " reasonable charges, to be determined and regulated
by the Federal Reserve Board, but in no case to exceed 10 cents per
hundred dollars or fraction thereof, based on the total of checks and
drafts presented at any one time, for collection or payment of checks
and drafts and remission therefor by exchange or otherwise; but no
such charges shall be made against the Federal Reserve Banks." The
Attorney General has been requested to give his opinion as to whether
this proviso applies to nonmember banks. An affirmative opinion
will make possible the establishment of an universal par clearing
system, but if, on the contrary, it should be held that the proviso applies to member banks only, the further development of the collection
system will necessarily be slow, and in the absence of further legislation will depend upon the voluntary action of many small banks.
In order to enlarge the facilities of the clearing and collection
system, and to render greater service to the banks and to their customers, the Board authorized the Federal Reserve Banks on July 1
to receive for collection for account of member banks maturing notes
and bills and miscellaneous drafts, subject to a moderate collection
charge. Consequently, member banks which were obliged to rely
upon other banks for service of this sort can now obtain it from the
Federal Reserve Banks. There has also been put into operation by
all Federal Reserve Banks a system of transfer drafts, which enables
any member bank to have its draft drawn upon the Federal Reserve



24

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Bank of its own district paid immediately without time allowance
or deduction at any other Federal Reserve Bank, adjustments between the respective Federal Eeserve Banks being made through the
gold-settlement fund. In this way any member bank has, under the
proper and necessary restrictions provided, the same exchange facilities it would have by carrying accounts in each of the 12 Federal
Reserve cities.
GOLD-SETTLEMENT FUND.

The operation of this fund has been described in former reports
of the Board and no extended comments upon it seem necessary at
this time. Under the act as amended additional safeguards have
been thrown around the fund by permitting the Treasurer of the
United States to carry a special account upon his books to the credit
of the Federal Reserve Board as agent for the respective Federal
Reserve Banks and Federal Reserve agents. Payments are now
made by checks signed by officials of the Board. The practice of
issuing gold-order certificates in denominations of $10,000, representing gold deposited with the Treasurer by Federal Reserve Banks,
which were held in the custody of the Federal Reserve Board pending transfers between the banks and the Treasury, is no longer
necessary and has been discontinued.
The operation of this fund, which is in effect a clearing house
for the 12 Federal Reserve Banks, has been particularly useful during the past year by reason of the continuous transfers of very
large amounts which have grown out of the sale of Government bonds
and Treasury certificates and the redistribution and disbursement of
the funds realized. The total volume of clearings and transfers
through the gold-settlement fund during the year amounted to
$26,962,946,500, as compared with $5,757,836,000 during 1916. The
net balances, representing the change of ownership between the Federal Reserve Banks, of gold held in the fund were $272,033,000.
Without such an arrangement actual settlements between Federal
Reserve Banks would have been accompanied with great expense and
loss of time, but by its aid these enormous transfers have been
automatic and instantaneous and have been made without the inconvenience and expense which would have been unavoidable had physical transfers or shipments of money been necessary.
BRANCHES OF FEDERAL RESERVE BANKS,

Questions relating to the establishment and operation of branch
banks have been simplified by the amendment to section 3 of the
Federal Reserve Act. As originally enacted, this section provided
that each Federal Reserve Bank " shall establish branch banks " to



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

25

be " operated by a board of directors under rules and regulations approved by the Federal Reserve Board," and provided also that there
be seven directors having the same qualifications as directors of
Federal Eeserve Banks. The section as now amended provides that
the Federal Eeserve Board may permit or require any Federal
Eeserve Bank to establish branches within its district, and that such
branches, subject to such rules and regulations as the Federal Eeserve
Board may prescribe, shall be operated under the supervision of a
board of directors to consist of not more than seven or less than three
directors, of whom a majority of one shall be appointed by the
Federal Eeserve Bank of the district and the remaining directors
by the Federal Eeserve Board.
During the year branches have been established at Omaha by the
Federal Eeserve Bank of Kansas City, at Louisville by the Federal
Eeserve Bank of St. Louis, and at Portland, Seattle, and Spokane,
by the Federal Eeserve Bank of San Francisco, and are now in operation. The Board has, in addition, authorized the establishment of
branches at Pittsburgh and Cincinnati by the Federal Eeserve Bank
of Cleveland, at Detroit by the Federal Eeserve Bank of Chicago, at
Baltimore by the Federal Eeserve Bank of Eichmond, and at Denver
by the Federal Eeserve Bank of Kansas City. It is expected that all
of these branches will begin business at an early date.
The policy of the Board in the establishment of these new branches
has been to recognize the unity and paramount responsibility of the
Federal Eeserve Bank, while extending full facilities to the banks in
the territory served by the branch. By avoiding duplications in
bookkeeping, and by a consolidated control of accounts at the Federal
Eeserve Bank, it is expected that branches can be operated at a comparatively small expense.
INTERLOCKING DIRECTORATES.

In its report for the year 1916 the Board gave full details of its
work in the application of the provisions of section 8 of the Clayton
Act and the Kern amendment thereto. Under authority of the Kern
amendment 186 officers or directors of member banks applied to the
Board during the year 1917 for its.permission to serve at the same
time as officers or directors of not more than two other banks or
trust companies, coming within the prohibitions of the Clayton Act.
In one case the permission applied for was refused on the ground
that the banks involved were deemed to be in substantial competition. In three cases, where the applying member-bank director
desired the permission of the Federal Eeserve Board to serve as a
director of two other institutions, the Board determined that substantial competition existed between the member bank and one of



26

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

the other institutions. As a result it gave its consent to the applying director to serve on only one of those other institutions. In the
remaining 182 cases the consent applied for was granted by the
Board. In its annual report for 1916 the Board noted that "in a
large number of other cases the directors affected recognized that
substantial competition did unquestionably exist, and so withdrew
voluntarily from one or more directorates, thereby bringing themselves into compliance with the act." This was doubtless true in
1917, as in the preceding year.
FIDUCIARY POWERS.

On June 11, 1917, the Supreme Court of the United States handed
down its decision in the case of Bank v. Fellows,1 appealed from the
Supreme Court of Michigan, which was referred to in the Board's
last annual report to Congress. The lower court was reversed and
the court sustained the constitutionality of section 11 (k) of the
Federal Reserve Act, which authorizes the Federal Reserve Board
" t o grant by special permit to national banks applying therefor
when not in contravention of State or local law the right to act as
trustee, executor, administrator, and registrar of stocks and bonds
under such rules and regulations as the said Board may prescribe."
The decision in this case is of far-reaching and vital importance to
the Federal Reserve system, in that it not only sustains the right of
Congress to vest in national banks the powers enumerated in section
11 (k), but fully recognizes the right of Congress to grant to such
banks any and all powers that are necessary to enable them to meet
the competition of corporations organized under State law.
Prior to this decision the Federal Reserve Board had granted permits to applicant banks except in those cases where the laws of the
State in which the bank was located expressly or by necessary implication prohibited such banks from exercising these powers. The
language of the court, in the decision handed down on June 11, seemed
to be susceptible of the interpretation that these permits might be
granted in any case in which the State laws permitted competing
banks to exercise such powers. In view of its importance the matter
was referred to the Attorney General, who reached the conclusion
that while Congress is fully empowered to authorize the Board to
grant permits under such circumstances, the act as it now stands does
not vest this authority in the Board. There are some States which
authorize banks or trust companies created and organized under their
own laws to exercise such powers but which expressly prohibit any
other corporations from doing so. In order to coordinate the powers
1

First National Bank of Bay City v. Grant Fellows, attorney general, and others.




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

27

of National with State banks it is recommended that section 11 (k)
be amended so as to permit the granting of these powers to national
banks in any case in which competing corporations organized under
State laws are permitted to exercise such powers.
By direction of the Board its counsel, with the consent of the
court, took part in the proceedings both in the Supreme Court of
Michigan and on appeal before the Supreme Court of the United
States. The Board has granted during the year 1917, 112 permits
for the exercise of fiduciary powers, making a total to date of 481,
EARNINGS AND EXPENSES.

The rediscount demands which have been made upon the Federal
Reserve Banks during the past year, and the greater employment of
their funds, have been reflected in very greatly increased earnings.
The combined net earnings of the 12 banks for the year were
$11,202,993, or at the rate of 18.9 per cent on an average aggregate
capital for the year of $59,260,000.
Section 7 of the Act provides that " after all necessary expenses
of a Federal Reserve Bank have been paid or provided for, the
stockholders shall be entitled to receive an annual dividend of 6 per
cent on the paid-in capital stock, which dividend shall be cumulative.
After the aforesaid dividend claims have been fully met, all the net
earnings shall be paid to the United States as a franchise tax, except
that one-half of such net earnings shall be paid into a surplus fund
until it shall amount to 40 per cent of the paid-in capital stock of
such bank."
The Board construes the foregoing as meaning that no contingent
fund may be set up against future expenditures or as a reserve for
unforeseen losses, but that the surplus fund, which under the law
can accumulate until it reaches 40 per cent of the capital of the
Federal Reserve Bank, is intended to take care of all such contingencies as ordinarily would be provided for by a profit-and-loss
account. The Board has advised the banks that in computing earnings available for dividends and surplus market values of securities
held should be taken into account. It has also permitted banks to
charge off furniture and fixtures accounts in full, and a reasonable
proportion of the cost of vaults. It has authorized the writing off
of the amounts actually paid for the printing of Federal Reserve
notes, whether the notes have been put in circulation by the bank or
held by the Federal Reserve Agent. It has also authorized those
banks which own their premises to write off 5 per cent of the total
cost per annum as a depreciation allowance. The gross and net
earnings of all the banks for the calendar year 1917, and the divi34365°—18



3

28

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

dends declared by them during 1917, are shown in the following
table:

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total.

Gross
earnings.

Net
earnings.

$1,198,009
4,848,291
1,015,958
1,297,244
770,009
541,823
2,022,278
736,774
628,338
955,950
569,430
854,755

Federal reserve bank.

$912,294
3,718,955
753,874
963,152
512,223
327,313
1,509,871
502,156
418,137
684,499
353,475
547,044

15,838,859

Amount of
dividends.

Fully paid
to—

$597,829 Dec. 31,1917
1,941,641
Do.
622,150 June 30,1917
715,615
Do.
240,945 Dec. 31,1917
215,972
Do.
860,057
Do.
284,566 Dec. 31,1916
363,876 Dec. 31,1917
360,236 June 30,1917
Do.
187,744
394,490 Dec. 31,1916

11,202,993 i 6,785,121

1
Exclusive of $16,603, representing dividends paid on surrendered stock and miscellaneous adjustments
in dividend account.

It will be seen from the foregoing that the Federal Reserve Banks
of St. Louis and San Francisco have paid their accumulated dividends up to December 31, 1916, that four others—the Federal Reserve Banks of Philadelphia, Kansas City, Cleveland, and Dallas—
have paid their accumulated dividends up to June 30, 1917, and that
six banks, viz, those of Boston, New York, Richmond, Atlanta, Chicago, and Minneapolis, have paid all accumulated dividends to the end
of 1917. These six banks, after charging off their expenses and making the depreciation allowances, which have been previously described,
have set aside surplus funds and have paid equal amounts to the
Government as a franchise tax, making the total payment to the Government $1,134,234.
The Board wishes to repeat the statements made in previous reports that the banks are not operated primarily for profit, but in
meeting the demands which are expected to be made upon them
during the coming year their earnings will undoubtedly continue to
be large. It is hoped that all accumulated dividends will be paid
during the year, and that the excess to be paid to the Government as
a franchise tax in future will be greater than the payment which has
just been made.
ADMINISTRATIVE POLICIES.

During the period of organization and of development which
extended over the first two years of the operation of the system, the
Board deemed it advantageous to obtain frequent suggestions from
the officials of the Federal Reserve Banks, and to have them confer
with each other in order that definite understandings might be
reached and uniform methods of operation determined upon. Many
of the problems which had to be worked out were entirely new, and



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

29

because of widely different conditions in the various districts frequent consultations seemed necessary to insure a better knowledge of
administrative details. Thus periodical conferences with the Federal
Reserve agents and with the governors of the banks were deemed
advisable in order to secure more speedily an effective organization.
The banks had, however, by the end of the year 1916 become well
established and, having had two years of actual experience to guide
them in the future conduct of their business, frequent conferences
were found to be no longer necessary. Moreover, the activities of the
year have been so groat as to require the constant presence of the
executive officers at their banks. There have in consequence been no
meetings of the Federal Keserve agents during the year, and but two
meetings of the Board with the governors of the banks. The events of
the past year have done much to bring into their proper relationship
as parts of a working whole the several component elements of the
Federal Reserve system. Experience has demonstrated that in all
vital matters of general policy calling for prompt and decisive action
concentration of responsibility without division of authority is indispensable. The position of the Federal Eeserve Board, as the
coordinating agency for all of the 12 banks and as the governing
body of the Federal Reserve system, is now well defined and the
line of distinction between the local management of each one of the
12 banks as a district bank, and the operation of all of the 12 banks
as a system, has become more marked.
The Board has, from time to time, advised purchases of acceptances
by Federal Reserve Banks from each other, and on two occasions during the year has exercised its powers of requiring Federal Reserve
Banks to make rediscounts for other Federal Reserve Banks as provided in section 11 of the act.
It is the policy of the Board to maintain an approximately uniform reserve position for all of the Federal Reserve Banks and to
correct wherever necessary, by means of interbank rediscounts, the
inequalities which result from seasonal movements of trade, or, more
particularly, from the operations of Government financing.
FEDERAL ADVISORY COUNCIL.

The Federal Advisory Council, composed of 12 members, chosen
by and representative of the Federal Reserve Banks, has held, in
conformity with the requirements of section 4 of the Act, four
meetings during the year, thus giving the Board, at frequent intervals, the benefit of its views as to the trend of the money market
and the proper adjustment of discount rates. Members of the council have reported also upon the general financial, agricultural, commercial, and industrial conditions in their respective districts.



30

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
RESERVE CITIES.

The Federal Reserve Act confers authority upon the Federal Reserve Board to add to the number of cities classified as reserve and
central reserve cities, or to reclassify existing reserve and central
reserve cities, or to terminate their designation as such. As the
reserves of member banks are now carried exclusively with the Federal Reserve Banks, the designation of any city as a reserve city
relates only to the percentage of reserve which must be carried by
the member banks located therein. The Board has retained the old
classification of central reserve and reserve cities and has also designated as reserve cities, making the banks therein subject to increased
reserve requirements, the cities of Buffalo, N. Y.; Grand Rapids,
Mich.; Memphis, Tenn.; Oakland, Cal.; Ogden, Utah; Peoria, 111.;
Toledo, Ohio; and Tulsa, Okla. Without this classification the banks
in those cities would have continued to carry the reserve prescribed
for country banks—7 per cent—and the Board deemed it equitable to
bring their reserves up to the requirements of other cities of their
class. The three central reserve cities under the old national banking
laws—New York, Chicago, and St. Louis—have been continued in
that classification, and the member banks of those cities are required
to carry the maximum reserve of 13 per cent. Philadelphia and
Boston, although important banking centers, each having a greater
population than the city of St. Louis, continue to be classified as
reserve cities, and reserves of 10 per cent only are required of the
banks located therein. It is difficult to make an equitable and uniform adjustment of reserves under the present law, and the Board
is making a careful study of the subject, with the view of considering
a recommendation to Congress at a later date of a change in the
law which would provide for a differential in reserves to be carried
in all towns and cities alike upon certain classes of deposits, with
a minimum for time deposits, a maximum for bank deposits, and
an intermediate percentage for individual or commercial deposits
subject to check. This is a matter, however, which will require
careful study and analysis, and the Board is not prepared at the
moment to make a recommendation for a change of the law in this
respect.
The Board desires, however, to call attention to the situation of
many banks located in outlying districts of larger cities, or in boroughs, formerly independent municipalities, which are now parts
of a greater city. The business of these banks is often local, and
it is suggested that Congress authorize the Board to classify banks
in outlying districts of large cities as though they were located in
independent municipalities.



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

31

OTHER AMENDMENTS SUGGESTED.

The Board sees no occasion at this time to recommend any material changes in the act. It would suggest, however, the following for
the consideration of Congress:
(1) An amendment of section 4 relating to the election of directors.
The law provides that the member banks shall be classified into three
general groups or divisions, each group to contain as nearly as
may be one-third of the aggregate number of member banks of the
district and to consist as nearly as possible of banks of similar capitalization, and that each member bank shall elect by ballot a district
reserve elector, and it provides also that each director shall signify
his first, second, and third choice, the second and third choice votes
being counted in cases where no candidate has received a majority of
first-choice votes.
This system, which is designed to secure a representative board of
directors, is complicated and has resulted in many cases in the choice
of directors by a very small minority of the banks. Most of the
banks since 1914 have neglected to choose district electors, and there
seems to be no reason why the directors of each bank should not be
permitted to authorize the president or cashier to cast the vote of
the bank. The Board has ruled that electors once chosen may continue to serve until their successors are elected, but since the first year
the banks have not as a rule participated fully in these elections. In
the election held in December, 1917, by the various groups in the
respective districts in nearly every case less than one-half of the
banks participated. In the New York district 84 votes were cast out
of a total of 224 in the group; in the Richmond district, 72 out of
172; in the Atlanta district, 66 out of 140; in the Chicago district, 86
out of 360; in the St. Louis district 35 out of 162; in the Minneapolis
district, 45 out of 283; in the Dallas district, 15 out of 201; in the
San Francisco district, 71 out of 178; and in one instance the successful candidate was chosen by 15 votes out of a possible total of 201,
and in another by 26 votes out of 162.
The Board would suggest, in order to simplify elections, that this
section be amended by permitting each member bank, through its
president or cashier, to cast a vote for director, and that there be no
requirement that the groups be as nearly equal numerically as may be,
but that the grouping be left to the discretion of the Federal Reserve
Board. The average capitalization of the banks differs so greatly in
the various districts that it is impossible to carry out the evident
intent of Congress to give the large banks, the medium-size banks,
and the small banks equal representation unless the banks can be




32

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

grouped more strictly with reference to their capitalization than is
possible under the law as it now stands.
(2) An amendment of section 16, which now permits Federal
Reserve notes to be issued in denominations of $5, $10, $20, $50, and
$100 only, so as to permit their issue in the larger denominations of
$500, $1,000, $5,000, and $10,000. It is thought that such an amendment would tend to increase the gold holdings of the Federal Reserve Banks, particularly those in the larger financial centers. The
Federal Reserve Banks receive gold at the present time chiefly from
two sources—by registered mail or express from National or State
banks, and over the counter in cases where new currency in convenient denominations is required for pay rolls or for other purposes. All avenues for loss of gold are now under control, except
direct withdrawals over the counter, and an analysis of counter
transactions at some of the Federal Reserve Banks discloses the fact
that from $100,000 to $1,000,000 of gold certificates are paid out
every business day mainly because many member banks prefer to
keep as part of their vault money notes of large denominations, which
can now be furnished only in the form of gold certificates.
(3) An amendment of section 22. This is a penal section, not altogether definite in its terms, and the Board is constantly receiving requests for an authoritative construction. It has, however, uniformly
adhered to the position that a section of this character can be construed only by the courts, and has declined in all cases to express any
opinion as to the liability which might be incurred by any bank
which acted upon an incorrect interpretation. As amended on June
21 this section permits transactions relating to the discount of notes,
drafts, or bills of exchange by a director with his own bank, upon the
affirmative vote or written consent of at least a majority of the board
of directors of the bank; but there are other transactions, such as the
purchase by directors of goods or property taken by the bank for
debt, which might in some circumstances be permitted by affirmative
vote of not less than three-fourths of its directors. There may be
times when a bank can best save itself from loss by being permitted
to have a transaction of this kind with one of its own directors.
(4) An amendment of section 25 to provide for the Federal incorporation of banking associations whose stock is owned by national
banks which operate under the control of the Federal Reserve Banks
and which are engaged solely in international and foreign banking.
The present law permits any national bank to invest an amount
not exceeding in the aggregate 10 per cent of its paid in capital
stock and surplus in the stock of one or more banks or corporations
chartered or incorporated under the laws of the United States or
any State thereof, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

33

United States. This language appears to indicate an intention by
Congress to permit incorporation under the laws of the United
States, and several national banks have become stockholders in
banks which have been organized under State laws for the purpose
of carrying on a foreign banking business in accordance with the
terms of this section. The arguments in favor of Federal incorporation are:
(a) The time will probably come when the conflict of the dual
control exercised by the Federal Keserve Board and by the banking
department of a State may be a matter of embarrassment or operate
to restrict the activities of the banking corporation.
(&) Such a banking corporation, being essentially a national enterprise, whose stock ownership by national banks was authorized by an
act of Congress, would appear to be entitled to the benefits and
protection of a Federal charter, which would be of great value in
competing for business in foreign countries.
(5) An amendment of sections 5208 and 5209 of the Eevised Statutes. These are penal sections relating to the overcertification of
checks, to embezzlement, abstraction or willful misapplication of
moneys, funds, or credits of national banks by officers, directors,
agents, or employees of national banks, and to false entries in books,
reports, or statements of national banks with intent to injure or defraud on the part of any officer, director, agent, or employee of a
national bank. It is suggested that these sections be amended so as
to apply to similar acts committed by officers, directors, agents, or employees of Federal Reserve Banks.
(6) An amendment of section 25 to provide-that any national bank
located in a city or incorporated town of more than 100,000 inhabitants, and possessing a capital and surplus of $1,000,000 or more,
may, under such rules and regulations as the Federal Reserve Board
may prescribe, establish branches, not to exceed 10 in number, within
the corporate limits of the city or town in which it is located, provided that no such branch shall be established in any State in which
neither State banks nor trust companies may lawfully establish
branches.
State banks which become members of the Federal Reserve system are allowed by law to retain any branches which may already
be in existence and, with the approval of the Board, to establish new
branches. National banks which have taken over State banks having
branches are permitted to continue the operation of these branches.
There seems to be no reason for such discrimination between members
of the Federal Reserve system, and with the view of placing them more
nearly upon terms of equality, besides affording in many cases better
service to the public, it is recommended that provision be made for
the establishment of branches by national banks, under proper limitations.




34

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
ORGANIZATION, STAFF, AND EXPENDITURES.

There have been no changes in the organization of the Board
during the past year. The growth of the system and the expansion
of the work of the Board have required some additions to its clerical
and examining force. There have been some minor changes due
mainly to the fact that several of the Board's staff have engaged in
military service, but the Board has thus far been able to fill their
places satisfactorily. There are now 76 persons on the staff of the
Board. The total cost of conducting its work during the year 1917,
including printing of the Bulletin and salaries of members, was
$249,302,220. Two assessments totaling $237,776.82 were levied upon
the Federal Reserve Banks for the year 1917. This amounts to 0.4 per
cent of their average paid-in capital for the year. The cost of
operating the gold-settlement fund for the year 1917 was $3,539.79,
as compared with $1,343.37 in 1916, the net cost being 0.013 cents per
$1,000, as against 0.025 cents the previous year.
Further details relating to the operation of the Federal Reserve
Board and of the system will appear as exhibits in the appendix of
this report, as will the annual reports of the Federal Reserve agents.
CONCLUSION.

The Federal Reserve system is to-day the ultimate resource of the
business and financial community, and its position as such is unquestioned. I t is the Nation's banking reserve and through its control
of discount rates its influence in the money market is paramount.
The Federal Reserve Board, as the governing body of the system, is
charged with the responsibility of so administering it as most effectively to aid the Government in its financial operations, while at the
same time assuring beyond peradventure the maintenance of sound
and solvent banking conditions. Every step taken and every policy
decided upon must be with the view not only of maintaining and
strengthening the financial position of the country in these critical
times but also of providing for the readjustments which must follow
the war.
The Board has a profound appreciation of the serious nature of its
responsibilities, and its purpose is to exercise its powers and direct
the policies of the Federal Reserve system so that, while always rendering the fullest measure of patriotic service, the system shall never
fail to arouse the confidence and sense of security which it now inspires as the country's great financial bulwark.
By direction of the Federal Reserve Board.
W. P. G. HARDING,

Governor.
The

SPEAKER OF THE HOUSE OF REPRESENTATIVES.







EXHIBITS.

35

Exhibit A.—DISCOUNT RATES.
Changes in discount rates during calendar year 1917.
DISCOUNTS, INCLUDING MEMBER BANKS' COLLATERAL NOTES, MATURING WITHIN
15 DAYS.

Bank.

Boston
New York
Philadelphia
Cleveland..
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Nov.—

Mar.—

In effect Jan.
Jan. 1, 24.
1917.

1

15 21

14
3

Dec—

Apr. May June
10.
11.
23.
26

1

30

5

10

11

In effect
Jan. 1,
1918.
21

A

S*
1

3i
3i

3

31

31

1

4

4

4

4

4

24
24

4
4

Si

4

4

3i
31
4
4
24
34

4
31

4
4

4
4
4

4

31

4
4

3*

4

1 Discounts maturing within 10 days, 31 per cent.
2 Member banks' collateral notes maturing within 15 days, 3J per cent.
3
Discounts maturing within 10 days, 3 per cent, and from 11 to 30 days, 31 per cent.
P A P E R , INCLUDING MEMBER BANKS' COLLATERAL NOTES, SECURED BY U N I T E D
STATES CERTIFICATES OF INDEBTEDNESS OR L I B E R T Y LOAN BONDS MATURING
W I T H I N 15 DAYS.
May—

Dec—

June—
Sept. Nov.
25.
30.

Bank.
.7

Boston....
New York 1
Philadelphia
Cleveland
Richmond
Atlanta .
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

8

10

19

22

23

25

1

11

12

3

5

21

3*
3

31
3

3

31
31

31
31
3

3|
34-

3
3

3i
3i
31

In effect
Jan. 1,
1918.

31
31
31
3*
31
31
31
31
31
31
31
31

1 Rate of 2 to 4 per cent on member banks' 1-day collateral notes in connection with the loan operations
of the Government established May 25,1917, and raised to 3-41 per cent Dec. 7,1917.




37

38

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Changes in discount rates during calendar year 1917—Continued.

PAPER SECURED BY UNITED STATES CERTIFICATES OF INDEBTEDNESS OR
LIBERTY LOAN BONDS MATURING WITHIN 16 TO 90 DAYS.
May—

June—

Nov.—

22

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City..
Dallas
San Francisco.

23

25

24

28

1

4

12

Dec—

Sept.
25.

Bank.
15

25

26

30

1

5

3

31

In
effect
11

21

4 !

4
4

4

3i

i

4

3\

3i '

1

4

1 3£

4
3*-

4
|

3?r

;

4
4

3\

i

3-|

i

I

4

4

3} i

J a n . 1,
1918.

4
4
4
4
4
4
4
4
4
4
4
4

i

PAPER MATURING WITHIN 16 TO 60 DAYS, INCLUSIVE.
In
effect
Jan. 1,
1917.

Bank.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

T

Mar.
1

No ^ .—26

4
4
4

Dec—

30

1

;

5

10

11

12

21

4V

In
effect
Jan. 1,
1918.
5

4}

41

14
4
4

41
41
41

41
4141
41

4
4

41
41
41

41

4

41
I

4

Ah

4

41
41

4-1
"

|

1 Rate of 41 per cent for paper maturing within 31 to 60 days.
PAPER MATURING WITHIN 61 TO 90 DAYS.
Bank.

Boston
New York
Philadelphia
Cleveland
R ich mond
Atlanta
Chicago
St Lonis
TTfrncQc C l t v

Dallas
San Francisco



In
effect
Jan. 1,
1917.
4
4
4
41
4
4

Jar
15

Nov.—

24

I

7

26

Dec—
! 30

5

12 | 21
5

41

5
41

41

41
1

41

|

4*

41

41 '

5

41

4
41
41

41
|

5

i
41

41
41

5

4

In
effect
J a n . 1,
1918.

;

i

5
41
41
41

39

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Changes in discount rates during calendar year 1917—Continued.
AGRICULTURAL AND LIVE-STOCK-PAPER MATURING AFTER 90 DAYS.
Dec—

In
effect

Bank.

Jan. 1,
1917.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas
San Francisco . .

Jan.
24.

In
effect
Jan. 1,
1918.

Nov.
30.

Feb.
9.

11

5

5
5
5
5

5
5
5

5

. . .

5
5

5

5£
5

51

5
5

51
5

5

41

j

5
5

TRADE ACCEPTANCES MATURING WITHIN 1 TO 60 DAYS.
In
effect

Bank.

Dec—

Jan. 1,
1917.

Boston..
New York
Philadelphia
Cleveland
Richmond
A tlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas
San Francisco

Jan. Mar. Apr. June Nov.
1
16
5
26
30
1

!

11

10

7

21

4

31

4
4

1

'

31
3J
31
31
31

3

i
4

31

24

:

4

4
3:
4

4

31

4
1

;

Sx

4
4

4
4
4

4:

3

In
effect
Jan. 1,
1918.

. 4

4

i
1

Rate of 3 per cent for paper maturing within 30 days.
Rate of 4 per cent for paper mauring 16-60 days effective Nov. 26.
TRADE ACCEPTANCES MATURING WITHIN 61 TO 90 DAYS.
2

Boston
New York...
Philadelphia
Cleveland
Richmond
Atlanta .
Chicago
St Louis
Minneapolis
Kansas City
Dallas
San Francisco..



Dec—

Nov.—

In

Bank.

effect Apr. June
4
26
Jan. 1,
1917.

Oct.
20
26

30

1

5

11

4

3i
31

4
4

Sh
2
4

4

3a

3J
31
31
31
4
31
31

21

4
4
4
4

4 1
4
j

In
effect
Jan. 1,
1918.
4
4
4
4
4
4
4
4
4
4
4
4

40

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Changes in discount rates during calendar year 1917—Continued.
COMMODITY PAPER MATURING WITHIN 90 DAYS.

Bank.

Boston
New York.
Philadelphia .
Cleveland.
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City .
Dallas . .
San Francisco

In
effect
Jan. 1,
1917.

Jan.—

Apr.—
Mar.
1

15

24

Oct.
20
4

Dec.
5

16

Dec. 5

4

Nov. 2
Do.
Nov. 5
Nov. 2

3*
4

3J
3

Si

3*
4

.
.

4i

4
3
(3)

Nov. 7
Dec. 11
Nov. 5
Nov. 2
Do.

1
Rates for commodity paper merged with those for commercial paper of corresponding maturities on
dates specified.
2
Commodity paper rates for bills maturing within 30 days, 3J per cent; 31 to 60 days, 4 per cent;
61 to 90 days, 4fc per cent; 91 days to 6 months, 5 per cent.
3 Rate of 3J per cent for paper maturing within 60 days and 4 per cent for paper maturing after 60 days
1
t within 90 days.
NOTE.—Rates for acceptances purchased in open market, which ranged from 2 to 4 per cent for all
deral Reserve Banks on January 1, had risen to 3 to 4J per cent by the end of the year at all Federal
jserve Banks except Boston, Chicago, and Minneapolis, whose rates ranged from 3 to 5 per cent.




Discount rates (high and low) in force during the period from Nov. 16, 1914, to Dec. 31, 1917.
MATURITIES.

Within 10
days.

11 to 30
days.

Within
15 days,
including
member
banks'
collateral
notes.

16 to 30
days.

31 to 60
days.

61 to 90
days.

Over 90
days.

Trade
Trade acacceptances ceptances,
within 60
61 to 90
days.
days.

Commodity
paper
within 1
90
days.

High. Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Low.

6
4

3
3

54
4

CO
CO
CO

6
4

34
34
4

34
3
34

34
34
4

34
3
34

34

5

4

6
4
44

4
4
4

6
4
44

4
4
4

6
5
5

5
5
5

34
34
4

34
34
34

34
34
4

34
34
34

3

44

4

6
4
44

4
4
4

6
4
44

4
4
4

6
44
5

44
44
44

3
34
4

3
3
34

3
34
4

3
3
34

3

44

4

6
44
44

4
4
4

6
44
44

44
44
44

6
5
5

5
5
5

34
34
4

34
3
3

4
4
4

4
34
4

34

44

4

6

4

6

5
44
44

34
34
4

34
34
34

4
4
4

4
34
34

4
4
4

34

44

4

44

4

44

4

44

34
4
4

34
34
4

3
3
34

CO

CO

4
4

5
5
5

4
4
4

6
4

6
5
5

4
4
4

6
4

4
4
4

CO

54
4

6
4
5

4
4
34

5434

4
4
4

6

4

54
3

4

6
4
5

4
34

CO

3
3

CO




6
34

CO

Boston:
Nov. 16,1914, to Dec. 31, 1915
Jan. 1,1916, to Dec. 31,1916
Jan. 1,1917, to Dec. 31,1917
New York:
Nov. 16,1914, to Dec. 31,1915
Jan. 1,1916, to Dec. 31,1916
Jan. 1,1917, to Dec. 31,1917
Philadelphia:
Nov. 16,1914, to Dec 31 1915
Jan. 1,1916, to Dec. 31,1916
Jan. 1,1917, to Dec. 31,1917
Cleveland:
Nov. 16,1914, to Dec. 31, 1915
Jan. 1,1916, to Dec. 31,1916
Jan. 1,1917, to Dec. 31,1917
Kichmond:
Nov. 16,1914, to Dec. 31, 1915
Tan 1 1916 to DPP ^1 lQlfi
Jan. 1,1917, to Dec. 31,1917

4

4

3

- 3
3
34

34
34

I

Discount rates (high and low) in force during the period from Nov. 16, 1914, to Dec. JJ,

1917—Continued.

to

MATURITIE S—Continued.

16 to 30
days.

31 to 60
days.

61 to 90
days.

Over 90
days.

Trade
Trade ac- Commodity
paper
acceptances ceptances,
within 1
90
within 60
61 to 90
days.
days.
days.

CO

6

4

6

4

4

4 '

4

4

4
6

4

6

4

4

41

4

4

4

4

3*

4

6

41

4

4
4

41

4

4

4

41

41

4

6

4

5

4

5
41
41

41
41
41

51

5
5
5

41
41

4
4
41

61
5
5

5
5
5

4

41
4i

4

61
5

4

31

31

&

a

31
31

31
31

31
4

31

3a-

31

31
3.1,

4

31
3
3

4

3V

3

31
31

31
31

31

31
31

31

31
4
4

31
31

4

31

4*

C

41

31

i

4

5
51

41
5

4
4
4

6

6
4
41

41
41

3-J

CO

4

31
31

CO

4

41

4

31
31
31

CO

4

5
5
5

31
31

CO

3

41

6

41
5
5

CO

6

31

6
41
5

4

5
5

CO

4

4

61
4

C'

4

4

41

4

4

4

4*

61
4
41

CO

6

CO

6

31

41
6

4

4

CO

4
4

MM

4
4

CO

6
4

CO




4
4

CO

T i n 1 1917 t o D e c 31 1917

6
4

CO

Atlanta:
Nov. 16,1914, to Dec. 31,1915
Jan. 1,1916, to Dec. 31,1916 .
Jan. 1,1917, to Dec. 31,1917
Chicago:
Nov. 16,1914, to Dec. 31,1915
Jan. 1,1916, to Dec. 31,1916
Jan. 1,1917, to Dec. 31,1917
St. Louis:
Nor. 16,1914, to Dec. 31,1915.
Jan. 1,1916, to Dec. 31,1916
Jan. 1,1917, to Dec. 31,1917 .
Minneapolis:
Nov. 16,1914, to Dec. 31,1915
Jan. 1,1916, to Dec. 31,1916..
Jan 1 1917 to Dec 31 1917
Kansas City:
Nov. 16,19i4, to Dec. 31,1915
Jan. 1,1916, to Dec. 31,1916

L o w . High. Low.

CO
MM

High. Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Low. High. Low. High.

CO

11 to 30
days.

CO

Within 10
days.

Within
15 days,
including
member
banks'
collateral
notes.

31

3

4

4

3
3

fed
W

o

i

Dallas:
Nov. 16,1914, to Dec. 31,1915
Jan. l, 1916, to Dec. 31,1916
J£
Jan. 1,1917, to Dec. 31,1917
§§ San Francisco:
Nov. 16,1914, to Dec. 31,1915
Jan. 1,1916, to Dec. 31,1916
Jan. l, 1917, to Dec. 31,1917

1917.

4
4
4

6
4

4

4
4

44

34

64
4

44

34

64
3
4

34
34
34

1
4
4

4

5

44
44
44

6
4

6

6

5
4

3
4
34

54

5V

3
3
4

34 (2)
34 (2)
3
(2)

6
4
44

44

4
4
4

64
%
1
4

44
44
44

4

i

34
34

3
3

34

Commodity rates were established during September and October, 1915, and merged with those for commercial paper of corresponding maturities in November and December,

2 Commodity paper rates for bills maturing within 30 days, 34 per cent; 31 to 60 days, 4 per cent; 61 to 90 days, 44 per cent.
3
Oct. 20,1917, rate of 3i per cent for commodity paper maturing within 60 days and 4 per cent for paper maturing after 60 days but within 90 days.




w
o
w
H

o
ft
w
r
w

w
o

Co

Exhibit B.—FEDERAL RESERVE NOTES.
Net amount of Federal Reserve notes received from the Comptroller of the Currency, issued to each Federal Reserve Bank, and in actual circulation; gold
and eligible paper held by each Federal Reserve Agent, also amounts of Federal Reserve notes held by*each Federal Reserve Bank on the last Friday
in each month during the calendar year 1917.
[In thousands of dollars; i. e., 000's omitted.]
New
York.

Philadelphia.

Cleveland.

21,108
25,254
24,724
30,133
29,390
39,960
44,841
50,296
56,074
64,651
74,221
83,817

125,510
184,546
231,590
261,494
310,620
350,352
367,890
377,492
394,620
426,744
490,337
553,939

24,140
30,376
31,510
35,273
48,713
51,846
56,705
60,472
62,118
78,360
95,435
107,486

13,614
19,132
22,345
26,859
29,974
42,068
45,820
57,464
63,684
75,155
94,435
119,650

22,098
21,125
20,337
19,722
19,694
20,606
21,245
25,094
34,191
45,993
58,485
62,680

31,291
31,800
31,227
30,791
30,335
29,796
30,303
30,621
41,358
50,179
70,097
78,757

10,161
15,833
30,679
49,003
62,816
94,383
103,553
113,788
129,397
146,532
185,658
226,080

19,803
19,267
19,350
20,422
20,668
21,639
25,188
27,194
31,927
48,372
61,738
64,153

25,506
30,864
28,716
29,013
29,205
30,662
32,452
31,660
38,691
48, 711
52,283
55,606

25,807
26,161
33,981
35,762
34,295
35,680
35,111
37,105
40,042
46,260
59,375
66,862

30,257
29,373
29,107
29,049
28,405
27,790
27,404
32,815
43,766
52,686
55,689
56,242

13,898
14,694
17,124
21,383
22,640
27,460

107,490
134,546
165,910
193,594
208,620
229,252

16,880
21,136
25,710
30,433
33,373
41,906

10,514
13,232
15,645
21,919
27,334
34,428

18,098
17,225
16,737
16,522
17,014
17,496

23,156
21,415
20,422
19,836
19,130
19,391

7,161
13,333
25,139
40,303
52,476
67,763

16, 763
16,227
15,010
15,482
16,408
17,979

19,886
20,344
20,271
22,563
23,365
24,772

20,849
22,623
23,223
24,992
25,955
26,140

22,271

Boston.
Federal Reserve notes received from the
Comptroller of the Currency less returned
for destruction:
Jan. 26
Feb. 23
Mar.30
Apr.27
May 25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov.30
Dec. 28
Federal Reserve notes issued to Federal
Reserve Banks (net amount):
Jan. 26
:
Feb. 23
Mar.30
Apr.27
May 25
June 29




Richmond.

Atlanta. Chicago. St. Louis.

Minneapolis.

Kansas
City.

Dallas.

San Francisco.

Total.

73,905

365,022
449,939
519,783
586,475
665, 969
769,170
816,615
872,436
972,351
1,122,777
1,356,155
1,549,177

14,727

291,693

15,727
16,208
16,217
18,954
21,854
24,388
26,103
28,435
36,483
39,134
58,402

20,486

16,208

331,469

21,156

16,217

382,564

20,563

18,954

446,544

19,919

21,854

488,088

19,529

24,388

550,504

3

W

W
O

July 27
Aug. 31
Sept. 28
Oct. 26
Nov. 30
Bee. 28
Gold coin and certificates held by or to
credit of Federal Reserve agent:
Jan. 26
Feb. 23
Mar. 30
Apr. 27
May 25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov. 30
Dec. 28
Eligible paper held by Federal Reserve
agent:
Jan. 26
Feb. 23
Mar. 30
Apr. 27
May 25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov. 30
Dec. 28




31,891
35,796
40,674
51.251
63.641
74,297

13,898
14, 694
17,124
21,383
22,640
22,460
21,891
25, 796
25,623
35,371
29,921
37,897

5,026
10,116
10,017
15,069
15,899
33,758
36,668

315, 224
376,917
456,339

42,205
45,472
53,318
63,320
81,355
97,326

39,880
44,024
52,244
64,215
80,495
105,710

18,155
21,994
31,871
44,313
55,485
60,840

21,563
24,661
34,428
47,069
59,157
66,887

73,653
84,688
99,497
116,632
147,358
187,780

20,368
23,204
28,317
41,322
58,828
61,863

25,862
26,870
32,761
40,421
47,193
51,016

25,671
27,825
30,162
37,580
49,475
58,062

18,943
24,370
35,021
42,906
48,039
47,727

584,464
26,103
28,435
644, 911
757,076
36,483
39,134
903,387
58,402 1,126,345
73,905 1,341,752

107,490
134,546
165,910
193,594
208,620
139,252
173,670
208,072'
212,300
187,224
171,097
250,599

16,880
17,076
22,360
26,283
30,463
33,606
32,905
32,072
40,418
48,220
52,025
56,946

10,514
13,232
15,645
21,919
27,334
34,428
30,880
33,024
36,244
47,715
51,995
55,410

13,808
10,565
10,209
5,935
5,655
7,318
7,483
8,714
15,955
28,729
31,867
31,602

18,525
17,634
17,591
17,265
16,859
16,320
18,072
20,650
30,117
40,058
42,341
49,821

7,161
13,333
25,139
40,303
52,476
62,003
56,653
70,568
88,537
81,372
104,783
124,400

12,416
12,380
11,663
13,435
9,781
9,472
14,911
16,537
17,270
27,075
45,831
32,366

17,386
17,244
16,971
20,553
19,205
21,576
21,366
16,274
21,965
35,625
34,197
31,920

18,914
18,788
21,818
24,046
24,090
14,830
14,635
17,428
20,748
30,620
30,146
42,052

21,601
20,486
20,019
19,235
17,634
16,986
15,624
15,615
22,471
26,303
29,023
25,037

14,727
16,208
16,219
18,954
21,854
24,388
26,103
28,435
26,579
26,380
38,598
43,801

273,320
306, 186
360, 668
422, 905
456, 611
402, 639
434, 193
493, 185
558, 227
614, 692
661. 824
781, 851

90,523
77,860
50,155
70,822
133,130
207,362
213,400

4,062
3,390
4,186
2,917
8,306
9,301
13,404
12,906
15,105
29,359
40,981

9,069
11,000
16,012
16,508
29,558
50,825

4,649
8,119
6,728
11,285
11,987
14,134
18,389
16,428
19,182
17,051
30,147
43,386

4,655
3,809
2,856
2,575
2,279
3,078
3,498
4,017
4,329
9,331
16,875
17,805

5,876
17,199
14,339
11,178
35,783
43,186
64,133

4,347
3,850
3,352
2,053
6,635
8,513
5,462
6,670
11,054
14,258
13,012
38,765

2,500
3,100
3,300
2,010
4,160
3,196
4,496
10,596
11,139
8,886
13,392
19,836

1,941
3,836
1,423
1,114
1,892
11,528
11,099
10,402
9,992
7,380
19,777
16,244

1,023
1,842
2,001
2,758
2,815
3,218
4,175
9,191
12,647
17,297
20,000
23,241

10,137
13,076
34,506
41,421

19. 115
28, 618
23. 050
25,
32,
153,
170,664
156,219
204,467
3033 704
490, 932
606, 705

240,170
257,572
282,300

Net amount of Federal Reserve notes received from the Comptroller of the Currency, issued to each Federal Reserve Bank, and in actual circulation; gold
and eligible paper held by each Federal Reserve Agent, also amounts of Federal Reserve notes held by each Federal Reserve Bank on the last Friday
in each month during the calendar year 1917—Continued.
[In thousands of dollars; i. e., 000's omitted.]
Boston.

NewYork.

Philadelphia.

Cleveland.

Richmond.

Atlanta. Chicago. St. Louis.

Minneapolis.

Kansas
City.

Dallas.

San Francisco.

Total.

Federal Reserve notes held b y b a n k s :
Jan. 26

!

1 ; 069

18,927

1,342

541

734

1,695

702

2,642

Ill

276

Feb. 23

!

839

14,958

974

859

620

846

2, 738

1,020

654

236

Mar. 30

!

1,754

10,035

1,529

753

818

942

4,559

828

401

Apr. 27

|

2, 772

10,974

1,364 I

1,397

776

785

4,061

850
490

2,108
589

1,266

224

May 25

j

2,051

17, 225

729 I

1,699

965

502

5,425

828
974

932

246

J u n e 29

j

2,993
2,446

31,925

1,896
1,098
2,010

24,954

28,298
26,035

2,930

22,080

2,202 I

1,512

712

544

6,029

928
742

1,060

797

429

2,660

33,686
41,697

July 27

5,407

26,988

780

2,398

609

1,65:5

4,841

1,966

1,593

726

482

Aug. 31

5,381

27,948

2,269

1,642

635

1,559

5,930

1,510

2,385

3,665

398

3,006
3,674

50, 449
56,996

3,759

25,901

2,291

2, 754

2,714

1,910

4,664

3,217

1,417

1,522

4,488

2,997

292

6,710
4,574

56,864

3,707

1,872
1,182

212

26,426

1,846
2,740

2,231

3,319
2,198

34,581

3,720

3,585

1,912

1,355

4, 795

342

7,922

59,369

3,683

3,489

2,645

1,379

9,695

1,408
1,412

2,782

2,083

4, 762
1,590

2,763

551

6,605

69,3H2
95,264

16,061
15,207
14,160
14,992
15,480
17,237
18,402
21,694
26,471
38,582
54,066
60,273

17,244

20, 738

21,995

11,734

18,236

21,969

20,250

13,762

Sept. 28
Oct. 26
Nov. 30

1
...j

Dec. 28

!

55, 8S1

Federal Reservenotesissuedbyeach Federal I
Reserve B a n k a n d in actual circulation:
Jan. 26

12,829

88,563

15,538

9,621

17,557

22,422

5,466

Feb. 23

13,8.55

119,588

20,162

12,373

16,605

20,569

10,595

Mar. 30

15,370

155,875

24,181

14,892

15,919

19,480

20,580

Apr. 27

18,611

182,620

29,069

20,522

15, 746

19,051

36,242

May 25

20,589

191,395

32,644

25,635

16,049

18,628

47,051

June 29

24,530

207,172

39,704

32,916

16, 784

18,847

61, 734

July 27

26,484

213,182

41,425

37,482

17,546

19,910

68,812

Aug. 31

30,415

229,624

43, 203

42,382

21,359

23,102

78, 758

Sept. 28

36,915

256,399

51,027

49,490

29,157

32,518

94,833

Oct. 26

47,932

288, 798

59, 613

60,998

42,896

45,547

112,144

Nov. 30

61,443

342,336

77,635

76,910

53,573

57,802

142,563

Dec. 28

72,214

396,970

93,643

102, 221

58,195

65,508

178, 085




259,768
503,171

19,682

22,395

20,755

21,735

23,726

20,339

14,321
17,856

22,391

25,023

19,673

19,844

357,610
420,509
454,402

23,712

25,343

19,100

21,728

508,807

24,269

24,945

18,461

24,485

24,160

23,972

23,097
24, 761

534,015
587,915

30,889

27,931

34,809

39,239

34,583

42,614

29,773
34,560

700,212
847,506

45,785

46,693

47,697

50,480

1,056,983

49,604

55,299

47,176

67,300

1, 246,488

ANNUAL BEPOBT OF THE FEREBAL BESEKVE BOABD.

47

Federal Reserve notes outstanding (i. e.t net amount issued to banks), in actual circula"
tion, and gold and paper collateral held by Federal Reserve Agents against outstanding
notes.
[In thousands of dollars; i. e., 000's omitted.]
Paper collateral for notes
Gold cover for notes issued.
Federal
Federal
Reserve
notes
Reserve Federal
In gold
notes Reserve
issued to Gold redemp- In gold
held by notes in
Federal
tion settleActual Excess Federal actual cirReserve coin and fund, ment
Total Amount amount of paper Reserve culation.
Banks, certifi- United fund,
cates
Federal gold. required. held. held. Banks.
net
in
States Reserve
amount. vault. Treas-'
urer. Board.
1917.

Jan. 5
12
18-19..
'26
Feb. 2
9
16
23

Mar. 2
9
16
23
30

Apr. 5-6
13
20
27
May 4
11
18
25

.

June 1
8
15
22
29..-.'.
July ' 6
"13
20
27
Aug. 3
10
17
24
31

Sept. 7
14
21....
28....

Oct. 5
11-12..
19
26

300,280
293,440
292,014
291,693
290,577
308,348
321,453
331,469
343,847
355,263
363,278
372,244
382,564
400^ 698
431,788
440, 539
446,544
458,874
470,401
478,906
488,088
499,844
512,527
527,971
539,976
550,504
570, 725
579,957
583,937
584,464
590,389
601,227
613,646
627,307
644,911
680,073
700,430
725,397
757,076
797,630
837,425
875,278
903,387

166,827
162,877
163,877
166,174
166,374
178,344
188,144
194,094
204,194
212,094
218,609
219,836
222,377
234,573
248,313
252,194
253,944
258,885
261,025
264,635
264,468
271,365
273,682
255,674
187,667
198,239
203,120
218,118
218,358
230,331
262,328
277,698
287,793
269,015
269,170
256,127
272,682
278,534
276,645
269,471
274,221
282,351
267,166




14,855
14,125
13,554
13,436
12,650
15,126
15,006
14,722
15,587
14,959
15,379
14,353
17,631
17,697
18,583
18,644
20,931
20,634
21,028
20,596
23,233
23,314
24,339
24,538
24,268
23,620
22,805
23,190
22,801
21,568
22,864
24,676
25,051
25,780
24,974
25,232
26,452
28,801
28,028
29,097
30,430
31,604
33,204

99,610
97,510
95,710
93,710
95,050
95,250
94,120
96,560
97,800
101,380
104,620
115,330
120,660
126,180
143,900
147,700
148,030
153,570
156,270
163,080
168,910
172,290
177,180
1;79,730
178,830
180,780
187,790
187,030
182,730
182,294
182,653
183,093
189,744
193,741
199,041
213,420
221,336
228,674
253,554
261,543
276,083
304,872
314,322

281,292
274,512
273,141
273,320
274,074
288,720
297,270
306,186
317,581
328,433
338,608
349,519
360,668
$78,450
410,796
418,538
422,905
433,089
438,323
448,311
456,611
466,969
475,201
459,942
390,765
402,639
413,715
428,338
423,889
434,193
467,845
485,467
502,588
488,536
493,185
494,779
520,470
536,009
558,227
560, 111
580,734
618,827
614,692

18,988
18,928
18,873
18,373
16,503
19,628
24,183
25,283
26,266
26,830
24,670
22,725
21,898
22,253
20,998
22,001
23,639
25,785
32,078
30,595
31,477
32,875
37,326
68,029
149,211
147,865
157,010
151,619
160,048
150,271
122,544
115,760
111,058
138,771
151,726
185,294
179,960
189,328
198,849
237,519
256,691
256,451
288,695

20,272
20,845
20,366
19,115
19,692
21,715
26,746
28,618
28,700
29,686
26,189
24,386
23,050
23,554
22,594
23,826
25,981
27,343
32,776
32,421
32,685
34,441
37,930
69,151
153,136
153,398
162,733
158,473
168,233
170,664
133,478
125,588
120,711
146,664
156,219
187,218
192,200
198,887
204,467
248,912
263,164
270,185
303,704

1,284
1,917
1,493
742

3,189
2,087
2,563
3,335
2,424
2,856
1,519
1,661
1,152
1,301
1,596
1,825
2,342
1,558
698

1,826
1,208
1,566
606

1,122
3,925
5,533
5,723
6,854
8,185
20,393
10,934
9,828
9,653
7,893
4,493
1,924
12,240
9,559
5,618
11,393
6,473
13, 734
15,009

27,407
25,272
29,047
31,925
30,547
29,825
29,614
28,298
29,589
28,651
27,217
25,440
24,799
24,188
29,979
26,182
26,035
30,372
32,183
32,405
33,686
34,979
31,058
36,356
40,255
41,697
43,266
47,449
49,711
50,449
49,604
51,983
54,864
54,258
56,996
58,774
55,863
55,151
56,864
56,714
57,540
60,068
55,881

272,873
268,168
262,967
259,768
260,030
278,523
291,839
303,171
314,258
326,612
336,061
346,804
357, 765
3fl6, 510
401,809
414,357
420,509
428,502
438,218
446,501
454,402
464,865
481,469
491,615
499,721
508,807
527,459
532,508
534,226
534,015
540,785
549,244
558,782
573,049
587,915
621,299
644,567
670,246
700,212
740,916
779,885
815,210
847,506

48

ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD.

Federal Reserve notes outstanding (i. e., net amount issued to banks), in actual circulation, and gold and paper collateral held by Federal Reserve Agents against outstanding
notes—Continued.
[In thousands of dollars; i. e., 000's omitted.]
Paper collateral for notes
Gold cover for notes issued.
issued.
Federal
Reserve
Federal
notes
Reserve Federal
In gold
issued to Gold redemp- In gold
notes Reserve
Federal
held by notes in
tion settleActual Excess Federal actual cirReserve join and fund, ment
Total Amount amount
Banks, certifi- United fund,
of paper Reserve culation.
cates
Federal gold. required. held. held. Banks.
net
States Reserve
in
amount. vault. Treasurer. Board.
1917.
Nov. 2..
9..
16..
23..
30..
Dec. 7...
14...
21...
28...

941,284
995,384
1,038,620
1,102,287
1,126,345
1,184,667
1,229,007
1,295,069
1,341,752

249,495
250,689
243,030
243,111
242,985
240,351
239,833
227,302
250,423




32,111
32,187
31,843
32,524
33,714
35,773
39,471
41,281
41,479

320,827
333,378
355,033
348,313
385,125
407,815
404,074
477,524
489,949

602,433
616,254
629,906
623,948
661,824
683,939
683,378
746,107
781,851

338,851
379,130
408,714
478,339
464,521
500, 728
545,629
548,962
559,901

365,107
439,202
431,182
532,411
490,932
536,473
602,967
602,074
606,705

26,256
60,072
22,468
54,072
26,411
35,745
57,338
53,112
46,804

60,283
62,872
66,035
86,395
69,362
74,130
75,622
67,427
95,264

881,001
932,512
972,585
1,015,892
1,056,983
1,110,537
1,153,385
1,227,642
1,246,488

49

\

ANNUAL REPOET OF THE FEDEEAL RESERVE BOARD.

j

Curve /, JJmounJts of Cold Cover held against SJtMtes
issued.
Curve Z: JJmounts of'<£**%. JVotes outstanding,
(-Cold Cover, filusJhfterCollateral requircjl).
Curve 3. Amounts of£"M.JYotes OzJJctual Circulation,,
(- Ji1mounts Outstandingr> less Amounts field
. by ^BanKs and in jtrocess of Redemption,).
1 i i i I l I I 1 1 1 1 1 1 1 1 1 1 1 II

1 1 II

1 M

1 1 H

1 1 1 1 1 1

|

j j i i i i i I i i

MILLIONS OF DOLLARS

§

FEDERAL RESERVE NOTES
OUTSTANDING
AND INCIRCULATION DURIN6 1917,
ALSO AMOUNTS OF GOLD AND REQUIRED PAPER
HELD BY FR. AGENTS.

1500
-1400

mo
1300

-

-BOO

—

zoo

-1200

•

IlOO

\

^ ^.l

/
i/
1000

i

-Km

f

" i'

_
_

900

900
~
N

\
x^

700

--

600

-

"$
<

-600

^. ^
M^'^^^
' S^.^
t
4v
TI
\
b
v
*
*
C
--< T cr £\—r V ki%'~

SOO

^^
^^

N^^
,S ^^

SOO

QY)

i

A
"^r
*

400

300

400
-300

200

9stn

100

inn

Q

m

Wem




irt

7/

)?/*

k'f

\ j

J"~7iW - f

'/

j-;

n?

7 ,1

J

K>

' p.?

19262 ,. f ?33
1BER \M0

m

50

ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD.

Statement of Federal Reserve notes, by denominations, printed, shipped to Federal Reserve
agents and United States subtreasnries. and on hand in reserve vault Dec. 31, 1917.
Fives.

Tens.

Twenties.

Fifties.

Hundreds.

$43,320,000
27,160,000

$49,080,000
48,920,000

$19,280,000
18,560,000

$12,800,000
6,600,000

$20,000,000
12,000,000

$144,480,000
113,240,000

16,160,000

160,000

720,000

6,200,000

8,000,000

31,240,000

339,280,000 168,080,000
251., 160,000 155,520,000

47,400,000
46,200,000

126,800,000
95,600,000

1,014,160,000
704,680,000

Bank.
Boston:
Printed
Shipped
On hand
New York:
Printed
Shipped

332,600,000
156,200,000
176,400,000

Philadelphia:
Printed
Shipped

88,120,000

12,560,000

1,200,000

31,200,000

309,480,000

29,000,000
26,440,000

On hand

37., 960,000
37,960,000

44,560,000
44,080,000

16,000,000
12,800,000

20,400,000
14,400,000

147,920,000
135,680,000

480,000

3,200,000

6,000,000

12,240,000

2.560,000

On hand
Cleveland:
Printed
Shipped

Total.

Richmond:
Printed
Shipped

27,160,000
15,040,000

43., 320,000
32,040,000

66,480,000
60,400,000

23,200,000
19,400,000

11,200,000
9,600,000

171,360,000
136,480,000

12,120,000

. ..

11,280,000

6,080,000

3,800,000

1,600,000

34,880,000

23,340,000
16,940,000

28,560,000
25.640,000

27,920,000
26,720,000

7,600,000
5,200,000

7,600,000
3,600,000

95,020,000
78,100,000

0,400,000

2, 920,000

1,200,000

2,400,000

4,000,000

16,920,000

24,740,000
23,880,000

32,280,000
31,680,000

35,600,000
30,240,000

8,000, 000
4,200,000

10,400,000
5,200,000

111,020,000
95,200,000

860,000

600,000

5,360,000

3,800,000

5,200,000

15,820,000

64,080,000
36,460,000

87,080,000
87,080,000

103,120,000
103,120,000

32,400,000
19,000,000

30,000,000
17,600,000

316,680,000
263,260,000

13,400,000

12,400,000

53,420,000

On hand
Atlanta:
Printed
Shipped
On hand
Chicago:
Printed
Shipped
On hand
St. Louis:
Printed
Shipped

27,620,000

29,940,000
21,380,000

27,760,000
27,680,000

24,800,000
23,600,000

'), 000,000
4,000,000

4,800,000
4,400,000

92,300,000
81,060,000

8,560,000

80,000

1,200,000

1,000,000

400,000

11,240,000

29,900,000
24,900,000

27,520,000
26,200,000

24,880,000
22,080,000

3,400,000
1,600,000

4,400,000
3,200,000

90,100,000
77,980,000

5,000,000

1,320,000

2,800,000

1,800,000

1,200,000

12,120,000

43,520,000
29,180,000

32,080,000
26,560,000

31,120,000
28,560,000

7,200,000
4,600,000

6,400,000
3,600,000

120,320,000
92,500,000

14,340,000

5,520,000

2,560,000

2,600,000

2,800,000

27,820,000

On hand
Minneapolis:
Printed
Shipped
On hand
Kansas City:
Printed
Shipped
On hand




51

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Statement of Federal Reserve notes, by denominations, printed, shipped to Federal Reserve
agents and United States subtreasuries, and on hand in reserve vault Dec. 31, 1917—

Continued.
Fives.

Tens.

Twenties.

Fifties.

20,040,000
17,720,000

26,320,000
24,000,000

24,880,000
23,920,000

6,000,000
2,800,000

7,600,000
4,000,000

On hand

2,320,000

2,320,000

960,000

3,200,000

3,600,000

San Francisco:
Printed
Shipped

20,640,000
20,340,000

29,320,000
24,080,000

30,480,000
30,320,000

14,000,000
13,000,000

16,400,000
16,000,000

110,840,000
103,740,000

On hand

300,000

5,240,000

160,000

1,000,000

400,000

7,100,000

688,280,000
415,640,000

760,560,000
643,000,000

601,200,000
567,120,000

183,000,000
139,400,000

266,000,000
189,200,000

2,499,040,000
1,954,360,000

272,640,000

117,560,000

34,080,000

43,600,000

76,800,000

544,680,000

Bank.
Dallas:
Printed
Shipped

Vault balance:
Total printed
Total shipped
Total on hand

Hundreds.

Total.

84,840,000
72,440,000
.

12,400,000

Federal Reserve notes by denominations issued through the Federal Reserve agents to the
banks, also amounts retired and outstanding Dec. 31, 1917.
Fives.

Tens.

Twenties.

Fifties.

Hundreds.

$22,546,600
9,712,440

.148,525,600
8,048,170

$14,488,200
693,120

$4,102,000
352,650

$7,002,300
561,500

$96,664,700
19,367,880

12,834,160

40,477,430

13,795,080

3,749,350

6,440,800

77,296,820

213,247,800 133,958,400
49,191,995
13,228,530

37,002,450
882,750

84,014,000
26,480,500

601,513,000
145,174,435

164,055,805

120,729,870

36,119,700

57,533,500

456,338,565

Bank.
Boston:
Issued
Retired
Outstanding
New York:
Issued
Retired
Outstanding
Philadelphia:
Issued
Retired
Outstanding
Cleveland:
Issued
Retired

133,290,350
55,390,660
77,899,690
20,692,700
7,818,955

38,594,800
7, 644,000

44,830,200
4,302,290

5,890,000
106,400

7,550,000
360,300

117,557,700
20,231,945

12,873,745

30,950,800

40,527,910

5,783,600

7,189,700

97,325,755

11,620,000
2,672,250

26,640,000
2,931,940

54,800,000
2,934,860

16,000,000
299,250

5,600,000
152,000

114,660,000
8,990,300

8,947,750

23,708,060

51,865,140

15,700,750

5,448,000

105,669,700

18,194,300
7,157,645

27,067,700
7,160,650

28,529,400
5,647,520

5,512,200
1,505,950

3,482,000
543,700

82,785,600
22,015,465

11,036,655

19,907,050

22,881,880

4,006,250

2, 938,300

60,770,135

Outstanding
Richmond:
Issued
Retired
Outstanding

Total.




ANNUAL REPORT1 OF THE FEDERAL RESERVE BOARD.

52

Federal Reserve notes by denominations issued through the Federal Reserve agents to the
banks, also amounts retired and outstanding Dec. 3, 1917—Continued.
Fives.

Tens.

Twenties.

Fifties.

25,144,050
9,971,965

33,645,800
8,912,195

28,860,980
5,343,600

3,730,450
1,511,000

2,442,900
1,218,000

93,824,180
26,956,760

15,172,085

24,733,605

23,517,380

2,219,450

1,224,900

66,867,420

22,920,050
3,775,000

70,000,000
1,560,730

82,800,600
1,727,840

11,600,250
221,900

10,800,100
47,000

198,121,000
7,332,470

19,145,050

68,439,270

81,072,760

11,378,350

10,753,100

190,788,530

18,632,950
6,073,900

28,672,940
4,439,950

23,452,160
2,248,670

2,960,050
740,550

2,550,000
901,600

76,268,100
14,404,670

12,559,050

24,232,990

21, 203,490

2,219,500

1,648,400

61,863,430

21,082,000
8,151,565

22,695,000
3,998,565

19,655,000
2,604,420

1,010,000
148,900

1,670,000
202,600

66,112,000
15,106", 050

12,930,435

18,696,435

17,050,580

861,100

1,467,400

51,005,950

25,984,000
10,070,640

22,090,000
4,977,690

26,954,000
5,437,050

6,610,000
5,054,100

1,790,000
5,100

83,428,000
25,544,580

15,913,360

17,112,310

21,516,950

1,555,900

1,784,900

57,883, 420

15,380,000
7,138,565

28,440,900
11,229,565

26,618,600
7,499,770

3,270,650
1,566,700

4,635,000
3,193,600

78,345,150
30,628,200

8,241,435

17,211,335

19,118,830

1,703,950

1,441,400

47,716,950

17,140,000
4,657,540

20,960,000
2,539,890

30,320,000
1,763,070

6,400,000
166,050

11,600,000
195,900

86,420,000
9,322,450

12,482,460

18,420,110

28,556,930

6,233,950

11,404,100

77,097,550

352,627,000
132,591,125

580,580,540
112,635,340

515,267,540
53,430,740

104,088,050
12,556,200

143,136,300
33,861,800

1,695,699,430
345,075,205

Total outstanding 220,035,875

467,945,200

461,836,800

91,531,850

109,274,500

1,350,624,225

Bank.
Atlanta:
Issued... „
Retired
Outstanding
Chicago:
Issued
Retired
Outstanding
St. Louis:
Issued
Retired
Outstanding
Minneapolis:
Issued
Retired
Outstanding
Kansas City:
Issued
Retired
Outstanding
Dallas:
Issued
Retired
Outstanding
San Francisco:
Issued
Retired
Outstanding

Hundreds.

Total.

KECAPITULATION.

Total issued
Total re tired




53

A-tfNUAL EEPOET OP THE FEDERAL RESERVE BOARD.

Statement of Federal Reserve notes, by denominations, received by agents, issued to the
banks, returned to the Comptroller for destruction, since organization of banks, and on
hand Dec. 31, 1917, as reported by Federal Reserve agents.
RECEIVED FROM COMPTROLLER OF THE CURRENCY.
Federal Reserve
agent at—
Boston
.
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Hundreds.

Twenties.

Fifties.

$24,160,000 $48,920,000
151,200,000 241,160,000
37,960,000
22,440,000
13,040,000 29,640,000
16,940,000
25,640,000
22,820,000
30,680,000
28,460,000
77,600,000
16,580,000
27,520,000
19,700,000
24,240,000
25,540,000
22,160,000
15,140,000
23,280,000
15,340,000
19,880,000

$14,880,000
151,520,000
44,080,000
59,840,000
26,720,000
28,720,000
97,120,000
23,600,000
20,240,000
25,040,000
23,280,000
30,320,000

$5,600,000
44,200,000
9,800,000
18,400,000
5,200,000
3,800,000
16,600,000
3,000,000
1,400,000
3,200,000
2,800,000
6,400,000

$5,600,000
91,600,000
11,200,000
7,600,000
3,600,000
3,600,000
15,200,000
2,400,000
2,400,000
2,800,000
4,000,000
11,600,000

$103,160,000
679,680,000
125,480,000
128,520,000
78,100,000
89,620,000
234,980,000
73,100,000
67,980,000
78,740,000
68,500,000
83,540,000

608,680,000

545,360,000

120,400,000

165,600,000

1,811,400,000

Fives.

371,360,000

Tens.

Total.

R E T U R N E D BY F E D E R A L RESERVE BANKS.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total.

$8,048,170
49,191,995
7,644,000
2,931,940
7,160,650
8,912,195
1,560,730
4,439,950
3,998,565
4,977,690
11,229,565
2,539,890

$693,120
13,228,530
4,302,290
2,934,860
5,647,520
5,343,600
1,727,840
2,248,670
2,604,420
5,437,050
7,499,770
1,763,070

$352,650
882, 750
106,400
299,250
1,505,950
1,511,000
221,900
740,550
148,900
5,054,100
1,566,700
166,050

$561,500
26,480,500
360,300
152,000
543, 700
1,218,000
47,000
901,600
202,600
5,100
3,193,600
195,900

$19,367,880
145,174,435
20,231,945
8,990,300
22,015,465
26,956, 760
7,332,470
14,404,670
15,106,050
25,544,580
30,628,200
9,322,450

132,591,125 112,635,340

53,430, 740

12,556,200

33,861,800

345,075,205

$9,712,440
55,390,660
7,818,955
2,672,250
7,157,645
9,971,965
3,775,000
6,073,900
8,151,565
10,070,640
7,138,565
4,657,540

TOTAL AMOUNTS FOR WHICH FEDERAL RESERVE AGENTS ARE ACCOUNTABLE.
Boston
New York
,
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
,
St. Louis
Minneapolis
Kansas City...,
Dallas
San Francisco.
Total....

$33,872,440 $56,968,170 $15,573,120
206,590,600 290,351,995 164, 748,530
30,258,955 45,604,000 48,382,290
15,712,250 32,571,940 62,774,860
24,097,645 32,800,650 32,367,520
32,791,965 39,592,195 34,063,600
32,235,000 79,160,730 98,847,840
22,653,900 31,959,950 25,848,670
27,851,565 28,238,565 22,844,420
35,610,640 27,137,690 30,477,050
22,278,565 34,509,565 30,779,770
19,997,540 22,419,890 32,083,070

$5,952,650 $10,161,500
45,082, 750 118,080,500
9,906, 400 11,560,300
18, 699,250
7, 752,000
6, 705,950
4,143, 700
5,311,000
4,818,000
16,821,900 15,247,000
3,740,550
3,301,600
1,548,900
2,602,600
8,254,100
2,805,100
4,366,700
7,193,600
6,566,050 11, 795,900

$122,527,880
824,854,435
145, 711, 945
137,510,300
100,115,465
116,576, 760
242,312,470
87,504,670
83,086,050
104,284,580
99,128, 200
92,862,450

503,951,125 721,315,340 598, 790, 740 132,956,200 199,461,800 2,156,475,205




54

A N N U A L REPORT OF T H E FEDERAL RESERVE BOARD.

Statement of Federal Reserve notes, by denominations, received by agents, issued to the
banks, returned to the Comptroller for destruction, since organization of banks, and on
hand Dec. 31, 1917, as reported by Federal Reserve
agents—Continued.
ISSUED TO FEDERAL RESERVE BANKS.
Federal Reserve
agent at—

Fives.

Tens.

i Twenties.

$22,546,600 $48,525, 600 $14,488,200
133,290,350 213,247,800 133,958,400
44,830,200
20,692, 700 38,594,800
26,640,000
54,800,000
11,620,000
27,067,700
28,529,400
18,194,300
33,645,800
28,860,980
25,144,050
70,000,000
82,800,600
22,920,050
28,672,940
23,452,160
18,632,950
22,695,000
19,655,000
21,082,000
22,090,000
26,954,000
25,984,000
28,440,900
26,618,600
15,380,000
20,960,000
30,320,000
17,140,000

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City
Dallas
San Francisco..

352,627,000 ! 580,580,540

Total

515,267,540

Fifties.

Hundreds.

$4,102,000
37,002,450
5,890,000
16,000,000
5,512,200
3, 730,450
11,600,250
2,960,050
1,010,000
6,610,000
3,270,650
6,400,000

$7,002,300
84,014,000
7,550,000
5,600,000
3,482,000
2,442,900
10,800,100
2,550,000
1,670,000
1,790,000
4,635,000
11,600,000

$96,664, 700
601,513,000
117,557, 700
114,660,000
82,785,600
93,824,180
198,121,000
76,268,100
66,112,000
83,428,000
78,345,150
86,420,000

104,088,050 j 143,136,300

1,695,699,430

Total.

R E T U R N E D TO COMPTROLLER FOR DESTRUCTION.
$9,705,840
55,300,310
7,406,255
2,672,250
5,743,345
5,128,915
3,134,950
3,780,950
5,269,565
7,706,640
5,028,565
2,857,540

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

113, 735,125

Total

$684,920
12,390,130
3,552,090
2,854,860
3,678,120
1,928,120
1, 727,240
1,436,510
1,349,420
1,123,050
2,411,170
1,763,070

$350,650
680,300
16,400
299,250
793, 750
90,550
221,650
40,500
18,900
54,100
96,050
166,050

$559,200
1,666,500
10,300
152,000
261,700
125,100
46,900
1,600
22,600
5,100
18,600
195,900

$19,343,180
119,141,435
17,994,245
8,910,300
15,489,865
10,882,580
6,691,470
8,426,570
9,884,050
12,056,580
12,268,050
6,442,450

93,003,300 | 34,898,700

2,828,150

3,065,500

247,530,775

$8,042,570
49,104,195
7,009,200
2,931,940
5,012,950
3, 609,895
1,560, 730
3,167,010
3,223,565
3,167,690
4,713,665
1,459,890

IN HANDS OF F E D E R A L RESERVE AGENTS DEC. 31, 1917.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta .
. .
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

. .

$1,620,000
18,000,000
2,160,000
1,420,000
160,000
2,519,000
6,180,000
240,000
1,500,000
1,920,000
1,870,000

$400,000
28,000,000

$400,000
18,400,000

3,000,000
720,000
2,336,500
7,600,000
120,000
2,320,000
1,880,000
1,355,000

37,589,000

47, 731,500




5,120,000
160,000
3,274,500
14,320,000
960,000
1,840,000
2,400,000
1,750,000

$1,500,000
7,400,000
4,000,000
2,400,000
400,000
1,490,000
5,000,000
740,000
520,000
1,590,000
1,000,000

$2,600,000
32,400,000
4,000,000
2,000,000
400,000
2,250,000
4,400,000
750,000
910,000
1,010,000
2,540,000

$6,520,000
104,200,000
10,160,000
13,940,000
1,840,000
11,870,000
37,500,000
2,810,000
7,090,000
8,800,000
8,515,000

48,624,500

26,040,000

53,260,000

213,245,000

55

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Statement of Federal Reserve notes, by denominations, received by agents, issued to the
banks, returned to the Comptroller for destruction, since organization of banks, and on
hand Dec. 31, 1917, as reported by Federal Reserve agents—Continued.
TOTAL AMOUNTS OF FEDERAL RESERVE NOTES ACCOUNTED FOR.
Federal Reserve Agent
at—
Boston
New York
Philadelphia
Cleveland
Richmond
Vtlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Fifties.

Hundreds.

$32,252,440 $56^568,170 $15,173,120
188,590,660 262,351,995 146,348,530
28,098,955 45,604,000 48,382,290
14,292,250 29,571,940 57,654,860
23,937,645 32,080,650 32,207,520
30,272,965 37,255,695 30,789,100
26,055,000 71,560,730 84,527,840
22,413,900 31,839,950 24,888,670
26,351,565 25,918,565 21,004,420
33,690,640 25,257,690 28,077,050
.". 20,408,565 33,154,565 29,029,770
19,997,540 22,419,890 32,083,070

$4,452,650
37,682, 750
5,906,400
16,299,250
6,305,950
3,821,000
11,821,900
3,000,550
1,028,900
6,664,100
3,366,700
6,566,050

$7,561,500
85,680, 500
7,560,300
5,752,000
3,743,700
2,568,000
10,847,000
2,551,600
1,692, C O
O
1, 795,100
4,653, C O
O
11,795,900

$116,007,880
720,654, -ISo
135,551,945
123,570,300
98,275,465
104,706, 760
204,812,470
84,694,670
75,996,050
95,484,580
90,613,200
92,862,450

550,166,240

106,916,200

146,201,800

1,943,230,205

Total

Fives.

466,362,125

Tens.

673,583,840

Twenties.

Total.

RECAPITULATION.
Received from Comp$371,360,000 $608,680,000 $545,360,000 $120,400,000 $165,600,000 $1,811,400,000
troller
12,556,200 33,861,800
132,591,125 112,635,340 53,430,740
345,075,205
Returned by bank
Total

! 503,951,125

352,627,000
Issued to banks
Return for destruction.. 113,735,125
37,589,000
On hand.
Total

503,951,125

721,315,340

598,790,740 132,986,200 199,461,800 2,156,475,205

580,580,540 515,267,540 104,088,050 143,136,300 1,695,699,430
93,003,300 34,898,700
3,065,500
2,828,150
247,530,775
47,731,500 48,624,500 26,040,000 53,260,000
213,245,000
721,315,340 598,790,740

132,956,200 199,461,800 2,156,475,205

Mutilated Federal Reserve notes, by denominations, received and destroyed since organization of banks and on hand in vault Dec. 31, 1917.
RECEIVED FOR DESTRUCTION.
Fives.

Tens.

Twenties.

$9,635,840
55,300,855
7,406,255
2,672,250
5,743,345
5,128,915
3,121,450
3,780,950
5,269,565
7,706,640
5,028,565
2,857,540

$7,912,570
49,106,405
7,009,200
2,931,940
5,012,950
3,609,895
1,554,730
3,167,010
3,223,565
3,167,690
4,713,665
1,469,890

$664,920
12,390,310
3,552,090
2,854,860
3,678,120
1,928,120
1,715,240
1,436,510
1,349,420
1,123,050
2,411,170
1,763,070

$350,650
680,300
16,400
299,250
793,750
90,550
221,650
40,500
18,900
54,100
96,050
166,050

$559,200
1,666,600
10,300
152,000
261,700
125,100
46,900
1,600
22,600
5,100
18, 600
195,900

$19,123,180
119,144,470
17,994,245
8,910,300
15,489,865
10,882,580
6,659,970
8,426,570
9,884,050
12,056,580
12,268,050
6,452,450

113,652,170

92,879,510

34,866,880

2,828,150

3,065,600

247,292,310

Total destroyed.. 110,695,020

90, 408, 220

33,777,150

2,742,450

2,990, 700,

240,613,540

2, 471,290

1,089, 730

85, 700

Bank.
Boston
Nee York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total received

Balance on hand.

2,957,150

Fifties.

Hundreds.

74,900

Total.

6,678, 770

NOTE.—During the year burned, badly mutilated, and fractional parts of Federal Reserve notes amounting to $11,060 have been identified, valued, and the bank of issue determined.




56

ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD.

Total amount of Federal Reserve bank currency received since organization of banks, by
Comptroller of the Currency from Bureau of Engraving and Printing, issued and on
hand, Dec. 31, 1917.
Bank.
Philadelphia:
Printed
Issued

Tens.

Twenties.

Fifties.

Total.

$320,000
0

. . .

On hand
Chicago:
Printed
Issued
On hand
Minneapolis:
Printed
Issued
On hand
Kansas City:
Printed
Issued
On hand
Dallas:
Printed
Issued

440,000

240,000

0

1,000,000

2,000,000
0

2,000,000
0

0
0

5,000,000
0

2,000,000

2,000,000

0

5,000,000

400,000
0

400,000
0

0
0

1,000,000
'
0

200,000

On hand

SI, 000,000
0

200,000
• 0

Richmond:
Printed
Issued

0
0

1,000,000

On hand

$240,000
0

1,000,000
0

Cleveland:
Printed
Issued

$440,000
0

320,000

On hand

Atlanta:
Printed
Issued

Fives.

400,000

400,000

0

1,000,000

640,000
0

480,000
0

480,000
0

400,000
0

2,000,000
0

640,000

480,000

480,000

400,000

2,000,000

1,600,000
0

1,800,000

o

1,600,000
0

0
0

5,000,000
0

1,600,000

1,800,000

1,600,000

0

5,000,000

1,320,000
0

2,680,000
0

0
0

0
0

4,000,000
0

1,320,000

2,680,000

0

0

4,000,000

4,360,000
3,414,980

5,040,000
4,000,000

3,600,000
2,640,000

0
0

13,000,000
10,054,980

945,020

1,040,000

960,000

0

2,945,020

1,640,000
1,012,400

2,400,000
1,960,000

2,000,000
1,760,000

0
0

6,040,000
4, 732, 400

On hand

627,600

440,000

240,000

0

1,307,600

San Francisco:
Printed
Issued

1,680,000
0

1,960,000
0

1,360,000
0

0
0

5,000,000

On hand

1,680,000

1,960,000

1,360,000

0

5,000,000

12,760,000
4,427,380

17,200,000
5,960,000

11,680,000
4,400,000

400,000
0

42,040,000
14,787,380

8,332,620

11,240,000

7,280,000

400,000

27,252,620

0

RECAPITULATION.

Total printed
Total issued
Total on hand

NOTE.—Plates for fives, tens, twenties, fifties, and hundreds have been engraved for both Boston and
New York, andfives,tens. and twenties for St. Louis, but no currency ordered printed.




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

57

Federal Reserve bank notes issued', redeemed, and outstanding, by denominations.
Redeemed.

Outstanding.

$4,427,380
5,960,000
4,400,000

$706,355
1,014,820
461,040

$3,721,025
4,945,180
3,938,960

14,787,380

2,182,215

12,605,165

Issued.
Fives
Tens
Twenties
Total

COST O F F E D E R A L

RESERVE

NOTES.

The cost to each Federal Reserve Bank of Federal Reserve notes,
including paper, preparing plates, and printing, but exclusive of cost
of transmittal, for the calendar year 1917 was as follows:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total




$79, 552. 41
548,146..61
55,324. 87
71, 378. 22
44, 072. 58
42, 020. 45
171, 841.46
49, 879.01
49,278. 45
64,147. 60
34, 214. 69
35, 368.18
;

1,245,224.53

Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit by each Federal Reserve Bank during
the calendar year 1917.
Boston.
Received.

Returned,

New York.

Philadelphia.

Cleveland.

Richmond.

Ox
00

Atlanta.

Received.

Returned

Received.

Returned.

Received.

Returned.

Received.

Returned.

Received.

S3,064,200

$9,552,800

$368,000
11,169,902

$634,700
5,818,700

5,876,300

11,553,902

$38,915
1,250,300
258,495

$352,900
1,725,105
883,000

835,000
798,005
311,000
406,000
113,000
122,000
129,000
101,000
163,000

247,995
336,670
151,400
357,500
90,600
17,000
12,100
312,450
31,370

$47,500
999,100
323,920
133,950

$263,900
3,600,750
798,000
100,600

101,100
72,680
420,040
176,520
77,030
64,240
36,410
32,595

145,200
285,900
939,500
226,705
53,000
25,000
295,390
67,955

$135,400
1,236,500
150,650
282,150
862,450

$193,200
3,030,710
311,000
72,180
268,520

278,520
128,610
34,250
44,390
34,240
33,500
12, 700

862,450
332,000
122,080
17,000
18,990
91,980
184,485

224,550
424,450
95,900
212,550
960,500
69,245

747,500
820,635
29,000
68,950
525,830
50,450

4,219,425 25,374,715 30,324,987 14,515,907

8,010,485

2,528,325

4,999,655

6,392,235

4,654,345

6,117,975

Returned

>
Boston
New York
Philadelphia...
Cleveland
,
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total




$9,482,800
634,700
352,900
263,900
193,200
347,800
99,700
142,200
126,600
141,400
156,500
11,941,700

$3,018,450
368,000
36,415
50,500
135,400
218,500
53,450
16,000
8,815
283,695
30,200

1,720,700

1,216,800

3,680,305

993,100

3,116,410

1,236,100

1,760,420

3,425,000

664,500

878,700

844,375

390,500

976,600

127,750

1,014,415

566,920

2,656,490

383,415

2,070,6

r
w
w
o
w
H
O
H

ft
t/2

w
o

Chicago.

St. Louis.

Minneapolis.

Kansas City.

Dallas.

San Francisco.

Total.

343

Received. Returned. Received. Returned. Received. Returned. Received. Returned. Received. Returned. Received. Returned. Received. Returned.

° Boston.....
J^ New York
Q° Philadelphia
Cleveland
b Richmond
Atlanta....
Chicago
St. Louis
Minneapolis
Kansas City
Dallas ..
San Francisco

$232,500 $347,800
3,425,000 1,698,920
357,500 419,000
1,178,650 418,040
312,000 128,610
747,500 223,550

Total

$53,450 $100,900
922,200 661,150
90,600 113,000
226,705 183,020
34,250
122,080
820,630 424,450
1,050,350 1,205,000

1,135,000 1,050,350
3,418,000 219,500 328,300
2,652,500 145,550 2,298,000
921,000 129,335 1,961,500
700,000 225,460 148,950

54,500
211,150
373,720
57,540

15,079,650 5,006,115 8,022,765 3,418,680




$15,000 $142,200
390,500
792,325
17,000
12^,000
51,500
116,030
17,000
44,390
29,000
95,900
219,500 3,418,000
54,500
328,300
215,000
58,000
260,000

$283,695
599,420
314,450
299,640
89,330
521,830
128,835
373,720
66,250
754,820

$141,400
964,265
101,000
39,410
33,750
950,600
974,000
1,961,500
58,000
310,950

104,060

225,145

$31,360 $156,500 $4,278,835 $12,012,900
393,580 2,560,440 29,997,052 24,799,975
163,000 8,066,790 14,960,902
31,575
36,840 5,175,740 2,534,070
69,545
14,200 6,450,175 2,083,430
185,015
66,850 6,210,710 4,650,150
50,990
875,000 5,129,265 15,268,500
301,010
148,950 3,344,960 7,979,770
58,170
272,000 5,537,985 1,351,000
266,140
56,100 7,783,185 1,118,755
319,635
106,560 5,765,280 3,506,950
226,605
4,355,640 1,843,080

7,895,375 3,536,050

5,760,020

1,933,625 4,456,440 92,095,617 92,109,482

$8,815 $126,600
127,750
929,160
11,600
129,000
25,000
66,740
18,990
34,240
68,950
217,550
142,150 2,776,500
211,150 2,298,500
133,400
224,500

133,400
66,250
249,295

310,950
52,100

1,327,000 5,508,090

1,110,855

754,820
337,765

o
w
H
O

w
w
w.
o

en

CO

Exhibit C—STATEMENTS OF CONDITION OF FEDERAL RESERVE BANKS.
Combined resources and liabilities of all Federal Reserve Banks as at close of business on the last Friday of each month during calendar year 1917.
RESOURCES.
[In thousands of dollars; i. e., O C s omitted.]
OT
J a n . 26.

Gold coin and certificates in vault..
Gold settlement fund
Gold with foreign agencies

Feb. 23.

Mar. 30.

Apr. 27.

May 25

June 29. July 27.

Aug. 31.

302,341

281,355 | 374,903

311,798

334,265

484,126

460,704

416,797

213,771

213,861

207,920

183,590

345,845

405,739

383,937

52,500

52,500

52,500

882,471
402,639
9,402

919,003

853,234

434,193

493,185

9,067

7,079

200,061

Sept. 28. Oct. 26. N o v . 30. Dec. 28.
445,597
342,337
52,500

461,113
363,967
52,500

499,887
395^,236
52,500

499,917
317,520
52,500

Total gold held by banks
Gold wjjth Federal Reserve agents..
Gold redemption fund

516,112

495,216

574,964

519,718

517,855

273,320

306,186

422,905

456,611

1,813

1,922

360,668
2,414

2,518

2,905

Total gold reserve
Legal-tender notes, silver, etc.

791,245

803,324

938,046

945,141

17,579

15,249

9,282

30,340

808,824

8,573

947,328

15,711
97,697

20,266

20,106

35,043

47,587

197,242

138,459

147,315

123,966

84,473

71,400

107,377

202,270

195,097

154,591

233,539
176,169

397,094
177,590

756,398
205,454

29,471

29,275

36,223

36,513

36,426

41,135

18,647

18,425

81,595

81,145

34,302

35,818

17,124

15,715

14,999

14,675

2,446

1,469

45,406
32,521
1,230

55,129
39,876
224

54,166
55,876
233

47,304
41,792
1,429

48,350
58,883
1,005

181,426

209,474

167,994

239,260

287,297

494,536

411,978

504,937
5,929
234,361

684,959 ,052,377 1,064,310
6,890 2-7,091
11,976
281,677 373,160
301,067

240,290

288,573

H
O

680,706
275,366

36,122
19,617
12,249

©

Total reserves.
Bills discounted—members and Federal Reserve
banks 1
Bills bought in open market l
Loans on gold coin and bullion
United States Government long-term securities
United States Government short-term securities
Municipal warrants
,
Total earning assets
from other Federal Reserve banks—net..
Uncollected items
Total deductions from gross deposits




840,434
558,227
9,809

877,580
614,692
11,164

947,623
661,824
12,278

869,937
781,S51.
19,345

977,371 1,294,512 1,302,263 1,353,498 1,408,470 1,503,436 1,621,725
36,892
39,840
49,506
54,486
52,010
49,089
51,789

1,671,133
49,635

G75,481 1,014,263 1,334,352 1,414,052 1,406,108 1,457,559 1,552,942 1,676,211

1,720,768

21,850

2^4,123

732

2,275

132

10,641

1,448

-11,106

126,437

136,940

132,759

204,842

328,779

221,705

204,756

381,003
10,233
260,184

122,314

137,672

135,034

204,974

339,420

223,153

193,650

270,417

366,069

313,043

td

o

5 per cent redemption fund against Federal Reserve
bank notes
All other resources

537
2,499

537
2, 813

1,126,573 1,174,390 1,256,149 1,425,872 1,647, 804 2,053,340 2,021 ,237 2,058,381 2,203,673 2,528, 365 3,097,693

3,101, 471

400

400
8,271

13,609

Total resources

400
5,393

400
5,757

400

500
799

6, 424

500
1,057

500
293

500
387

537
1, 354

LIABILITIES.
55,694
25,607
687,841
97,374

Total gross deposits
Federal Reserve notes in actual circulation
Federal Reserve bank notes in circulation—net liability
All other liabilities

810,822
259,768

289

Total liabilities

70,442
57,176
57,825
58,904
62,629
68,500
56,991
59,379
108,213
76,114 300,966 143,032 154,358
71,289 132,221 220,962
813,326 1,033,460 1,135,456 1,069,804 1,136,930 1,264,323 1,489,370 1,453,166
191,689
170,151 149,527 137,815 140,278 157,524 174,492 231,776
39,903
76,000
68,433
17,969
1,000
19,473
9,547
36,335

56,075
20,567
720,411
100,961

56,409
99,689
719,785
129,032

303,171

Capital paid in
Government deposits
Due to members—reserve account
Collection items
Other deposits, including foreign Government credits.

841,939
357,610

948,506 1,135,591 1,484,053 1,425,850 1,404,343 1,434,176 1,607,371 1,961,581
420,509 454,402 508,753 534,015 587,915 700,212 847,506 1,056,983

522

525

•55,989
13,407
692,475
108,826

814,708

448

820

934
1,524

2,459
1,088

6,023
1,195

8,000
1,908

8,000
2,859

8,000
2,629

1,771,037
1,246,488
8,000
5,504

11,126,573 1,174,390 1,256,149 1,425,872 1,647,804 2,053,340 2,021,237 2,058,381 2,203,673 2,528,365 3,097,693 3,101,471

i
2 MATURITIES OF BILLS ON HAND.
Within 15 days
Over 15 but within 30 days..
Over 30 but within 60 days..
Over 60 but within 90 days..
Over 90 days
Total..




4,957

115,223
44,799
94,431
73,893
5,210

108,291
55,508
89,170
46,124
2,813

178,383
63,712
96,234
09,936
1,443

344,190
51,887
101,512
75,211
1,884

581,704
91,556
140,417
141,927
6,248

395,697
118,545
2S0,138
152,708
8,986

19,512

333,556

301,906

409, 70S

574,684

961,852

956,072

29,402
IS,794
51,790
12,414
1,008

36,912
32,925
49,617
23,915
863

31,061
30,320
30,636
11,735
827

38,021
20,900
29,620
16,735
1,167

43,844
22,370
50,808
35,145

172,168

2,797

113,408

144,232

104,579

106,443

154,964

2

53,754
91,213
77,420

Net amounts due to other Federal Reserve Banks.

62

ANNUAL EEPOET OF THE FEDERAL RESEKVE BOAEB.

MOVEMENT OF RESERVES OF ALL FEDERAL RESERVE BANKS
DURING THE CALENDAR YEAR 13(7, (N MILLIONS OF DOLLARS.
Carvel: J8CLTIXS Gold Settlement
fund.
Curve2. > Jotal Cold held with t?ie 3\ft. $oard.
inrt. Amounts standing to the credit of331 Joents.
Carve J; JotaZ6oldSteserveagainstZtefwsits,nlu$ooulheid
witfi tMjytJfoamto the credit cfJTJt. Agents.

Curve S: JctaLfi&e-rpes.mjct. Silver, tf&Jfotes,etc.
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63

ANNUAL EEPOET OF THE FEDEKAL KESEKVE BOAED.

MOVEMENTOFEARtimGASSETSOFALLFEDERALRESERVE
BANKS
DURING THE CALENDER YEAR 131?, IN MILLIONS OF DOLLARS.
Curve / .• Member JSanKs 'Collateral J&fcs.
Curve 2.- Total 3C3oouutts.
Curve 31 Jotai JSULs JfeUi,ind. Cp4K?{ar?ec£jfaxte0».
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Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 7 to Dec. 28, 1917.
[In thousands of dollars; i. e., 000's omitted.]

Bills
Total cash discounted
United
United
reserves, for memStates
States
Gold coin
Bills
Gold
Gold with Gold with
Gold
Federal redemption Total gold including bers and bought in GovernGovernand
foreign
ment
Reserve
ment
certificates settlement agencies.
legal
open
reserves.
fund.
Federal
fund.
in vault.
agents.
market. long-term short-term
tenders,
securities. securities.
silver, etc. Reserve
banks.
Jan.5...
Jan.12..
Jan.19..
Jan.26..
Feb. 2 . . .
Feb. 9 . . .
Feb. 16..
Feb. 23..
Mar. 2 . . .
Mar. 9 . . .
Mar. 16..
Mar. 23..
Mar. 30..
Apr. 6...
Apr. 13..
Apr. 20..
Apr. 27..
May 4 . . .
May 11..
May 18..
May 25..
June 1...
June 8..
June 15.
June 22.
June 29.




267,169

192,00?.

281,292

292,829

206,541

274,512

286,509

212,051

273,141

302,341

213,771

273,320

306,964

212,961

274,074

274,194

212,961

288,720

274,367

216,221

297,270

281,355

213,861

306,186

304,163

212,031

317,581

330,184

205,561

328,433

355,318

201,661

338,608

350,736

209,281

349,519

374,903

200,061

360,668

362,472

200,125

378,450

338,369

198,271

410,796

330,152

20G, 830

418,538

311,798

207,920

422,905

336,138

218,910

433,089

336.841

221,759

438,323

350,269

187,969

448,311

334,265

183,590

456,611

299,225

187,556

466,969

330,001

205,886

475,201

365,020

221,970

459,942

492.842

267,910

52,500

390,765

484,126

345,845

52,500

402,639

1,600
1,782
1,783
1,813
1,835
1,734
1,804
1,922
2,347
2,325
2,339
2,519
2,414
2,505
2,434
2,651
2,518
2,669
2,687
2,754
2,905
3,053
2,730
3,958
8,001
9,402

742,062

758,242

775,664

792,433

773,484

783,822

791,245

808,824

795,834

808,019

777,609

788,242

789,662

797,271

803,324

818,573

836,122

846,093

866,503

885,616

897,920

914,102

912,055

922,720

938,040

947,328

943,552

902,062

949,870

971,006

958,171

982,633

945,141

975,481

990,786

1,030,201

999,610

1,035,759

989,303

1,016,745

977,371

1,014,263

956,803

993,427

1,013,818

1,051,511

1,050,890

1,075,408

1,212,018

1,247,698

1,294,512

1,334,352

26,217
24,355
17,219
15,711
14,707
16,200
19,553
20,266
18,840
18,500
17,234
18,473
20,106
17,928
22,009
29,737
35,043
35,916
39,534
44,846
47,587
50,854
98,021
202,824
240,981
197,242

121,807

41,052

14,857

115,979

41,106

14,857

108,447

37,899

18,314

97,697

36,122

19,647

93,112

30,550

18,647

112,092

29.470

18,647

126,054

29,471

18,647

123,966

29.471

18,647

114,058

28,650

19,468

108,860

29,126

19,468

97,002

29,155

19,3G8

87,798

29,275

18,818

84,473

29,275

18,425

82,735

30,629

23,042

80,004

36,218

23,370

72,925

36,215

23,360

71,400

36,223

23,450

83,871

36,222

23,450

97,155

36,222

23,450

100,177

36,3SC

23,33S

107,377

36,513

23,338

110,100

36,387

23,338

135,270

36,387

23,338

.164,525

36,400

23,344

194,303

36,427

78,491

202,270

36,426

34,302

Gold coin
Gold
and
certificates | settlement
fund.
in vault.

July 6 . .
July 13.
July 20.
July 27.
Aug. 3.
Aug. 10.
Aug. 17.
Aug. 24.
Aug. 31.
Sept. 7.
Sept. 14
Sept. 21
Sept. 28
Oct. 5 . .
Oct. 12.
Oct. 19.
Oct. 26.
Nov. 2..
Nov. 9..
Nov. 16.
Nov. 23.
Nov. 30.
Dec. 7 . .
Dec. 14.
Dec. 21.
Dec. 28.




470,
471
488,
460,
399,
413,
399,
426,
416,
414,
408,
430,
445,
481,
482,
419,
461,
501,
507,
526,
530,
499,
500,
502,
524,
499,

371.
388,
403,
405,
438,
409,
410,
397,
383,
395,
384,
373,
342,
334
321,
369,
363,
378,
385,
363,
386,
395,
376,
393,
304,
317

Gold with
foreign
agencies.

52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500

Gold with
Gold
Total gold
Federal
redemption
reserves.
Reserve
fund.

413,715
428,338
423,889
434,193
467,845
485,467
502,588
488,536
493,185
494,779
520,470
536,009
558,227
560, 111
580,734
618,827
614,692
602,433
616,254
629,906
623,948
061,824
683,939
683,378
746,107
781,851

9,748
12,687
11,691
9,067
9,390
9,274
9,795
7,375
7,079
7,218
9,127
9,442
9,809
9,465
9,717
11,218
11,164
11,317
11,496
11,420
11.549
12,278
17,485
17,710
17,982
19,345

1,317,703
1,353,371
1,380,020
1,362,263
1,367,673
1,370,942
1,374,583
1,372,219
1,353,498
1,364,783
1,374,949
1,402,317
1,408,470
1,438,477
1,447,445
1,471,539
1,503,436
1,546,075
1,573,377
1,584,328
1,604,704
1,621,725
1,631,358
1,650,238
1,645,543
1,071,133

Bills
Total cash discounted
reserves,
for memincluding
bers and
legal
Federal
tenders,
Reserve
silver, etc.
banks.
1,356,017
1,400,916
1,430,321
1,414,052
1,421,382
1,424,059
1,427,489
1,424,769
1,406,108
1,415,391
1,426,034
1,452,251
1,457,821
1,486,715
1,495,558
1,520,512
1,552,942
1,596,819
1,625,585
1,636,853
1,658,762
1,676,211
1,683,307
1,700,384
1,093,670
1,720,768

129,853
140,163
161,386
138,459
130,948
134,229
143,946
128,407
147,315
168,217
167,333
183,758
233,539
265,251
293,164
286,615
397,094
503,965
510,154
487,850
650,002
756,398
686,G02
713,431
693,509
(ISO, 706

Bills
bought in
open
market.

201,664
194,937
197,725
195,097
174,183
149,790
155,329
159,557
154,591
173,199
168,445
161,012
176,169
186,162
185,775
171,611
177,590
186,012
181,001
193,869
209,905
205,454
190,682
254,428
277,943
275,366

United
States
Government
long-term
securities.

42,935
43,961
42,265
41,135
42,422
41,276
45,129
45,226
45,406
45,394
45,358
53,929
55,129
55,727
54,878
55,088
54,166
53,851
53,743
54,002
53,962
47,304
49,198
53,774
50,438
48,350

United
States
Government
short-term
securities.
28,659
30,359
33,050
35,818
25,464
32,604
30,552
30,480
32,521
42,441
42,366
41,070
39,870
73,632
48,517
47,255
55,876
45,211
42,367
187,904
57,850
41,792
50,424
48,016
58,130
58,883

j

o
w
H

o

fej

w
o
w
to

Principal resources and liabilities of all Federal Reserve Banks at close of business on each Friday, Jan. 7 to Dec. 28, 1917—Continued.
[In thousands of dollars; i. e., 000's omitted.]
Total
United
States
securities.

Jan. 5...
Jan. 12..
Jan.19..
Jan.26..
Feb. 2 . . .
Feb. 9...
Feb. 16..
Feb. 23..
Mar. 2...
Mar. 9...
Mar. 16..
Mar. 23..
Mar. 30..
Apr. 6...
Apr. 13..
Apr. 20..
Apr.-27..
May 4 . .
May 11..
May 18.,
May 25.
Junel...
June 8...
June 15.
June 22.,
June 29.




55,909
55,963
56,213
55,769
49,197
48,117
48,118
48,118
48,118
48,594
48,523
48,093
47,700
59,671
59,588
59,575
59,673
59,672
59,672
59.724
59,851
59.725
59,725
59,744
114,918
70,728

Municipal
warrants.

8,736
9,859
10,596
12,249
12,664
14,833
16,678
17,124
16,798
16,932
16,029
15,761
15,715
15,207
15,212
15,163
14,999
14,755
14,688
14,639
14,675
13,912
5,524
2,470
2,444
2,446

Total
earning
assets.

212,669
206,156
192,475
181,426
169,680
191,242
210.403
209,474
197,814
192,886
178,788
170,125
167,994
225,541
227,413
227,400
239,260
258,811
269,138
274,052
287,297
294,748
358,500
483,947
552,649
494,536

Total
Uncolleeted resources
and
items.
liabilities.

142,629
120,846
132,416
126,437
126,611
121,225
144,249
136,940
154,026
130,411
155,976
145,757
132,759
146,422
169,184
166,966
204,842
184,639
310,685
192,830
328,779
177,092
304,730
290,320
195,826
221,705

1,129,358
1,143,728
1,126,896
1,126,573
1,130,550
1,125,442
1,168,782
1,174,390
1,210,177
1,218,857
1,258,843
1,247,980
1,256,151
1,343,346
1,373,684
1,384,642
1,425,872
1,484,706
1,623,405
1,577,526
1,647,804
1,475,400
1,725,540
1,860,934
1,999,642
2,053,340

Capital
paid in.

55,695
55,706
55,642
55,694
55,725
55,713
55,773
55,989
56,045
56,028
56,054
56,057
56,075
56,100
56,408
56,411
56,409
56,859
56,859
56,868
56,991
56,985
57,000
57,171
57,171
57,176

Government
deposits.

25,566
27,759
28,410
25,607
23,333
15,525
10,851
13,407
14,162
12,401
18,594
19,702
20,567
46,461
42,247
41,988
99,689
107,868
242,421
187,127
76,114
96,478
228,125
262,581
495,807
300,966

Due to
members- Collection
reserve
items.
account.

656,422
680,586
669,874
687,841
689,878
678,170
688,591
692,475
708,893
720,488
726,104
711,117
720,411
758,219
741,542
742,584
719,785
743,143
740,726
748,499
813,326
721,146
775,771
870,734
806,209
1,033,460

118,559
111,238
109,734
97,374
101,232
97,207
121,218
108,826
116,330
102,824
121,550
113,784
100,961
105,436
131,064
128,856
129,032
122,761
134,447
136,750
170,151
134,091
181,321
176,424
137,581
149,527

Other
Federal
deposits,
Federal
Reserve
Reserve
including
notes in Bank notes
foreign
in circulaactual
Governtion, net
circulation. liability.
ment
credits.

25,000
10,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

272,873
268,168
262,967
259,768
260,030
278,523
291,839
303,171
314,258
328,433
336,061
346,804
357,610
376,510
401,809
414,357
420,509
428,502
438,218
448,311
454,402
464,865
481,469
491,615
499,721
508,753

4
>

o
w
H

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H
W

r
w

o
>

776
934

Total
United Municipal
States
warrants.
securities.

July 6 . . .
July 1 3 . .
July 20..
July 27..
Aug. 3 . .
Aug. 10.
Aug. 17.
Aug. 24..
Aug. 31.
Sept. 7 . .
Sept. 14.
Sept. 21.
Sept. 28.
Oct. 5 . . .
Oct. 12..
Oct. 19..
Oct. 26..
Nov. 2...
Nov. 9...
Nov. 16..
Nov. 23..
Nov. 30..
Dec. 7 . . .
Dec. 14..
Dec. 2 1 . .
Dec. 28..




71,594
74,320
75,315
76,953
73,880
75,681
75,706
77,927
87,835
87,724
94,999
95,005
129,359
103,395
102,343
110,042
99,062
96,110
241,906
111,812
89,096
99,622
101,820
108,568
107,233

2,442
2,441
2,186
1,469
1,249
1,274
1,223
1,232
1,230
204
214
214
224
79
101
233
233
1,267
1,273
1,273
17422
1,429
914
994
1,102
1,005

Total
earning
assets.

405,553
411,861
436,612
411,978
374,266
359,173
376,179
364,902
381,063
429,455
423,716
439,983
504,937
580,851
582,435
560,802
6S4,959
790,306
788,538
924,898
979,141
1,052,377
978,120
1,070,673
1,081,122
1,064,310

Total
Uncollected resources
and
items.
liabilities.

251,334
253,722
242,967
204,756
197,058
205,761
230,704
210,387
260,184
216,960
224,622
236,794
234,361
230,423
321,205
332,302
281,677
317,901
271,796
428,544
302,525
373,160
310,572
319,656
323,574
301,067

2,033,760
2,074,790
2,116,124
2,021,237
1,998,444
1,988,263
2,048,442
2,001,140
2,058,381
2,074,714
2,081,734
2,132,179
2,203,673
2,301,633
2,417,845
2,447,841
2,528,365
2,721,534
2,697,170
3,012,406
2,956,130
3,104,784
3,001,836
3,125,554
3,142,956
3,101,471

Capital
paid in.

57,657
57,681
57,723
57,825
57,881
57,970
58,093
58,484
58,904
59,256
59,368
59,354
59,379
61,027
61,104
61,847
62,629
64,291
65,345
66,691
67,136
68,500
69,048
69,440
69,852
70,442

Government
deposits.

143,626
300,872
184,631
143,032
56,765
140,447
110,110
59,972
154,358
39,926
21,602
25,030
71,289
86,310
74,167
76,365
132,221
175,912
59,198
218,887
196,411
220,962
168,568
129,285
221,761
108,213

Due to !
members—| Collection
reserve
items,
account, i

1,112,347
1,019,672
1,164,995
1,135,456
1,192,887
1,101,614
1,130,817
1,121,129
1,069,804
1,138,542
1,139,291
1,151,704
1,136,930
1,148,887
1,265,309
1,230,557
1,264,323
1,372,023
1,406,982
1,480,498
1,426,648
1,489,370
1,437,174
1,549,030
1,389,434
1,453,166

164,588
153,363
165,284
137,815
132,053
122,493
171,916
137,955
140,278
154,112
156,268
164,449
157,524
159,258
173,825
210,048
174,492
191,811
187,022
240,437
215,169
231,776
189,861
196,767
205,819
191,689

Other
deposits,
including
foreign
Government
credits.
6,000
7,847
5,767
9,547
14,269
11,274
12,637
43,933
39,903
53,339
51,621
51,779
68,433
95,029
52,377
43,262
36,335
25,310
34,866
21,925
23,291
19,473
15,586
14,282
14,258
17,969

Federal
Federal
Reserve
Reserve Bank notes
notes in
in circulaactual
circulation, tion, net
liability.

527,459
532,508
534,226
534,015
540,785
549,244

558,782
573,049
587,915
621,299
644,567
670,246
700,212
740,916
779,885
815,210
847,506
881,001
932,512
972,585
1,015,892
1,056,983
1,110,537
1,153,385
1,227,642
1,246,488

1,175
1,960
2,306
2,459
2,828
4,182
4,907
5,473
6,023
6,894
7,561
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000

68

ANNUAL REPOET OF XlilS FEDERAL RESERVE BOARD.

CASH RESERVES AND
EXCESS RESERVES OF THE ER. BANKS
1917




Carve /. Cash S^eserves required against
Jfet Sep-osic and J^.JYbte liabilities combined.
Cbure 2.- Jotal Cash 3teserre$ ofChe JTJl. 3anKs.

ANNUAL EEPOET OF THE FEDERAL EESEBVE BOARD.

NET DEPOSITS & FRNOTE LIABILITIES,
TOTAL RESER VES, AND RA TIO OF TOTAL RESER VES
TO A6GRE6ATE NET DEPOSITAHD FR.NOTE LIABILITIES,
DURING CALENDAR YEAR 1917.




Currc Z,

CurveI: JfetZkjtosiia.

Oznv J .-Jbtal (hsh fleaervea.
.- Jtatio ofJatal Cash J&serves Co JgcrtqateJfetZ>c}wsifi4&3lJrGte&at>mie$

70

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Required reserves against net deposit and Federal Reserve note liabilities and amounts of
gold held in excess of required reserves.
[In thousands of dollars; i. e., 000's omitted.]
Net deposits.
1917.
Amount.

Jan. 5
Jan. 12
Jan. 18-19
Jan. 2G
Feb. 2
Feb. 9
Feb. 16
Feb. 23
Mar. 2
Mar. 9
Mar. 16
Mar. 23
Mar. 30
Apr. 5-6
Apr. 13
Apr. 20
Apr. 27
May4
May 11
May 18
May 25
Juno 1
Junes
Juno 15
June 22
June 29
July 6
July 13
July 20
July 27
Aug. 3
Aug. 10
Aug. 17
Aug. 24
Aug. 31
Sept. 7
Sept. 14
Sept. 21
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Oct. 26
Nov. 2
Nov. 9
Nov. 16
Nov. 23
Nov. 30
Dec. 7
Dec. 14
Dec. 21
Dec. 28

S651,
68'
670,
680,
675,
656,

681,
702,
708,
695,
7O6:
760,
744,
743,
743,
808,
815,
793,
721,
771,
876,
1,014,
1,242,
1,261,
1,155,
1,221,
1,273,
1,232,
1.194,
1,171,
1,183,
1.152,
1,133,
1,156,
1,137,
1.153,
1,193,
1,255,
1,
1.195,
1,318,
1,432,
1,408,
1,515,
1,547,
1,595,
1,474,
1,538,
1,466,
1,457,




Required
reserve of
35 per cent.
$227,938
240,487
234,692
238,092
236,301
229,748
234,000
236,963
238,468
245,756
247,413
243,442
247,417
266,099
260,609
260,396
260,237
283,111
285,447
277,560
252,409
270,181
306,837
355,171
434,774
441,630
404,503
427,359
445,759
431,270
417,960
410,103
414,081
403,326
396,874
404,923
398,162
403,872
417,860
439,772
429,564
418,387
461,579
501,470
492,991
530,378
541,493
558,429
516,000
538,375
513,213
510,298

Federal Reserve notes
in circulation.
Required
Amount. | reserve of
| 40 per cent.
$272,873
268,168
262,967
259,768
260,030
278,523
291,839
303,171
314,258
326,612
336,061
346,804
357,610
376,510
401,809
414,357
420,509
428,502
438,218
446,501
454,402
464,865
481,469
491,615
499, 721
508,753
527,459
532,508
534,226
534,015
540,785
549,244
558,782
573,049
587.915
621,299
644,567
670,246
700,212
740.916
779,885
815,210
847,506
881,001
932,512
972,585
1,015,892
1,056,983
1,110,537
1,153,385
1,227,642
1,240,488

$109,149
107,267
105,187
103,907
104,012
111,409
116, 736
121,268
125,703
130,645
134,424
138,722
143,044
150,604
160,724
165,743
168,204
171,401
175,287
178,600
181,761
185,946
192, 588
196,646
199,888
203,501
210,984
213,003
213,690
213,606
216,314
219,698
223,513
229,220
235,166
248,520
257 827
268,098
280,085
296,366
311,954
326,084
339,002
352,400
373,005
389,034
406,357
422,793
444,215
461,354
491,057
498,595

Total
amount of
required
reserves.

$337,087
347,754
339,879
341,999
340,313
341,157
350, 736
358,231
364,171
376,401
381,837
382,164
390,461
416,703
421,333
426,139
428,441
454, 512
460, 734
456,160
434,170
456,127
499,425
551,817
634,662
645,131
615,487
640,362
659,449
644,876
634,274
629,801
637,594
632,546
632,040
653,443
655,989
671,970
697,945
736,138
741,518
744,471
800,581
853,870
865,996
919,412
947,850
981,222
960,215
999,729
1,004,270
1,008,893

Total cash
reserves
held.

$758,242
792,433
783,822
808,824
808,019
788,242
797,271
818,573
846,093
885,616
914,102
922,720
947,328
962,662
971,606
982,633
975,481
1,030,201
1,035,759
1,016,745
1,014,263
993,427
1,051,511
1,075,408
1,247,698
1,334,352
1,356,017
1,400,916
1,430,321
1,414,052
1,421,382
1,424,059
1,427,489
1,424,769
1,406,108
1,415,391
1,426,034
1,452,251
1,457,559
1,486, 715
1,495,558
1,520,512
1,552,942
1,596,819
1,625,585
1,636,853
1,658,762
1,676,211
1,683,307
1,700,384
1,693,670
1, 720, 768

Gold in
excess of
required
reserves
(free gold).

$421,155
444,679
443,943
466,825
467, 706
447.085
446,535
460,342
481,922
509,215
532,265
540,556
556,867
545,959
549,673
556,494
547,040
575,689
575,025
560,585
580,093
537, 300
552.086
525,591
613,036
689,221
740,530
760,554
770,872
769,176
787,108
794,258
789,895
792,223
774,068
761, 948
770,045
780,281
759,614
750,577
754,040
776,041
752,361
742,949
759,589
717,441
710,912
694,989
723,092
700,655
689,400
711,875

ANNUAL, EEPOET OF T H E FEDERAL RESERVE BOARD.

71

Commercial paper, exclusive of acceptances bought in open market, held by each Federal
Reserve Bank on Dec. 28, 1917, distributed by maturities.
MATURITIES.
[In thousands of dollars; i. e., 000's omitted.]
Federal Reserve
Bank.

From
16 to 30
days.

Within
15 days.

From
31 to 60
days.

From
61 to 90
days.

Over 90
days.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

13,047
141,907
20,877
23,767
21,232
10,374
70,316
21,710
2,765
19,904
1,665
7,809

7,804
10,804
2,877
4,573
1,902
1,932
14,385
4,681
1,140
2,736
105
4,428

8,862
78,859
13,133
12,587
5,342
2,728
12,289
10,753
6,776
8,504
5,774
9,399

36,218
23,415
2,634
3,669
1,619
1,179
5,346
2,592
1,384
1,628
439
3,851

5
12
47
4,189
76
1,426
2,042
890
299

Total
Percent

355,373
52.3

57,367
8.4

175,006
25.7

83,974
12.3

8,986
1.3

Acceptances

Total.

65,931
254,985
39,521
44,601
30,107
16,260
106, 525
39,812
13,491
34,814
8,873
25,786

Per cent.

9.7
37.5
5.8
6.6
4.4
2.4
15.6
5.8
2.0
5.1
1.3
3.8

680, 706

100.0

bought in open market, held by each Federal Reserve Bank on Dec. 28, 1917,
distributed by maturities.
MATURITIES.
[In thousands of dollars; i. e., 000's omitted.]

Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond...".
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas .
San Francisco
Total
Percent

. .

Within
15 days.

From
16 to 30
days.

From
31 to 60
days.

From
61 to 90
days.

981
13,631
2,135
5,177
2,534
1,370
1,493
819
2,284
1,406
1,233
7,258

1,204
22,043
6,823
6,812
4,494
703
1, 649
1,809
3,129
9
6,947
5,555

715
67,700
5,019
7,126
4,113
3,868
1,227
3,076
2,037
10
6,185
4,056

5,441
44,751
4,440
2,911
1,897
994
4, 293
1,676
349

40,321
14.6

61,177
22.2

105,132
38.2

68, 736
25.0




3

1,981 1

Over 90
days.

Total.

8,341
148,125
18,417
22,026
13,038
6,935
8,662
7,380
7,799
1,425
14,368
18, 850

Per cent.

3.0
53.8
6.7
8.0
4.7
2.5
3.2
2.7
2.8
0.5
5.2
6.9

275,366
100.0

72

ANXUAL REPORT OF THE FEDERAL RESERVE BOARD.

Short-term investments (municipal warrants) held by each Federal Reserve Bank on Dec.
28, 1917, distributed by maturities.
MATURITIES.
[In thousands o dollars; i. e., 000rs omitted.]
f

Federal Reserve
Bank.

From
31 to 60
days.

From
16 to 30
days.

Within
15 days.

Boston
NGW York

From
61 to 90
days.

Over 90
days.

511

Total.

Per cent.

511

50.9

Philadelphia
Cleveland...
Richmond .

10

10

1.0

7

7

0.7

Atlanta

28

302

30.0

25

2.5

101

150

14.9

104

1,005

10

141

123

Chica ^o
St Louis
Minneapolis
Kansas Citv Dallas
San Francisco
Total
Per cent

25
46

115

10

652

11.6

1.0

64.9

123
12.2

10.3

100.0

United States securities held by each Federal Reserve Bank on Dec. 31, 1917, distributed by
classes and maturities.

Federal Reserve Bank.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City.-..

2 per cent
consols of
1930.

2 per cent
Panamas of
1936-1933.

$750
50
6,400
915,100
640, 600
1,862,500

3 per cent
loan of
1918.

$100
467,200
237,000
21,000
367,300

2,653, 660

10,300
2,581,000

16,2G0
22,240
281,500

1,199,180

San Francisco.
Total...

15, 784,050

1,412,600

7, 563,840




$400

1,0S0, 000

100

3 per cent
conversion
bonds of
1946-47.

S529,000
1,255, 500
549, 200
414, 800

$50,000

323,050
7,155,850
2,450,900
2,428, 750

Dallas

3 per cent
loan of
1961.

427, 400
1,153,300

500

114,800
838, 500
1,233,600

900 j 6,526,400

3 per cent
1-year
notes.

19 i, 000
493,000
548,000
221,000
969,000
491,000
378,000
444,000
340,000
784,000
430,000
500,000
26, 792,000

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

73

United States securities held by each Federal Reserve Bank on Dec. 31, 1917, distributed by
classes and maturities—Continued.

Federal .Reserve Bank.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
-

per cent
3* per cent 4Liberty
Liberty
loan of
loan of 1947.
1942-47.

$80,000
411,150
249, 850
2, 027,000
42,900
290,900

1

Total U . S .
bonds and
notes.

U. S. certificates of
indebtedness.

$2 99<? 742

$118,992

3,470,150
6,302, 800
320, 750
41,450
1,434,200

Chicago

$2,378,200

Total

27,950

10,384, G O
O
3,077, 400

200,250

3,227,990
10,633, 090
5,92G, 100
3,955, 000

500

78,039,182

43,050.500

825,000

7 500
477,100
20, 250

53,000

3,61? 650

11,769,292

5,177,450

Total U . S .
securities.

1

9,079, 850 $15,000,000
9,649, 950
11,489,010 28,050,000
3 205 450
3,888 000

1,708,000

St. Louis
Minneapolis
Kansas Citv
Dallas
San Francisco

1

4 per cent
loan of
1925.

$2,922,742
24, G79, 850
9,649,950
39,539,010
3,205,4,50
3, Sm, 000
10,384,GOO
3, 077, -100
3, 228,490
10,033,090
5,920,100
3,955,000

121,089,632

Includes unpaid portion of 4 per cent Liberty loan bonds sold to individual subscribers.

Amount of United States bonds with circulation
privilege:
2 per cent consols and panamas
3 per cent loan of 1918
4 per cent loan of 1925
Total.




$17,196,650
7,563,480
5,177,450
29,937,940

Amount of United securities without
circulation privilege:
3 per cent loan of 1961
3 per cent conversion
3 per cent 1-year notes
3£ per cent Liberty loan
4 per cent Liberty loan
U. S. certificates of i n d e b t e d n e s s . . .
Total.

$900
6,526,40)
26,792,000
3,012,650
11,769,292
43,050,500
91,751,742

Statement showing condition of each Federal Reserve Bank and of the system on Dec. 31, 1917.
RESOURCES.
[Detailed figures shown for each bank in first column represent items as reported to the board; figures in second column, printed in italics, indicate results of consolidation according
to methods used in the compilation of the board's weekly statement.]
Boston.
Oold. bullion and United States coin
Ciiiteu States gold certificates (including clearing-house certificates)
Gold ZoitK CTid certificates in vault
Gold settlement fund, Federal Reserve Board
Gold with foreign agencies

$2,749,900.00
15,941,000.00
16,977,000.00
3,675,000.00

Total gold held by hanks
Gold with Federal Reserve agents
Gold redemption fund with United States Treasurer




5,854,000.00
18,112,500.00

$325,132,000.00
5,854,000.00
18,112,000.00

40,897,000.00 250,598,565.00
2,000,000.00 10,000,000.00

250,599,000.00
10,000,000.00

32,101,000.00
3,675,000.00

349,098,000.00

609,697,000.00

988,536.00
2,574,800.00
11,230.00

31,322,275.00
8,925,531.00
212.85

$19,064,000.00
32,101,000.00
3,675,000.00
54,840,000.00

63,945,755.00
1,500,000.00

63,946,000.00
1,500,000.00

H
O
H
K

d

40,248,000.00

1,190,000.00

85,814,000.00

649,945,000.00

w
r
w

121,476,000.00

7,349,338 00
58,533,021.35

111,248,943.00
139,060,003.96

9,037,506.04

65,882,000.00
9,038,000.00 148, 770,185.44

250,309,000.00
148,770,000.00

74,920,000.00

399,079,000.00

1728,742.41

j

o
w

120,286,000.00
671,100.00
518,262.00
634.10

3,574,000.00

Total bills on hand
United States bonds to secure circulation
Other United States bonds owned

$18,691,000.00
16,977,000.00
5,675,000.00

Philadelphia.
$147.50
19,064,520.00

82,240,000.00

40,896,820.00
2,000,000.00

Total reserves
Member banks' collateral notes
All other bills discounted
Bills discounted for members and Federal Reserve Banks
Bills bought in open market

$68,178,991.99
256,952,580.00

39,343,000.00

Total gold reserves
Legal tender notes (including clearing-house certificates)
Silver certificates (including clearing-house certificates)
Silver coin
.
.
Legal tender notes, silver, etc

New York.

15,168,599.64

4,008,400.00
31,903,836.94
18,390,067.91

35,912,000.00
18,390,000.00
54,302,000.00

7,101,950.00

w
o
>
o

United States Government long-term securities
One-year Treasury notes
United States certificates of indebtedness
CO
United States Government short-term securities
& Municipal warrants
° All other earning assets

728,000.00

2,194,000.00

19,493,000.00

;ooo.oo
10,000.00

511,000.00

10,000.00

424,252,000.00

77,842,000.00

Exchanges for clearing house
Checks and other cash items
National bank notes and notes of other Federal Reserve Banks
Mutilated currency (other than own Federal Reserve notes) forwarded for
redemption
Check lost in transit
Collection items—Debits:
Federal Reserve Banks—Transfers bought
Federal Reserve Banks—Other items
Member and nonmember banks and bankers
Uncollected items

63,962,000.00

2,300,431.57
916,166.13
92,000.00

7,309,335.13
19,120,325.61
964,450.00

2,980,995.71
4,397,568.98
1,353,500.00

469,400.00

476,535.00

56,000.00
58.00

570,000.00
4,006,463.76
10,430,919.68

O
H
O

19,767,938.39
7,144,756.58

29,982,193.73
18,109,596.47
18,786,000.00

75,962,000.00

35,701,000.00

18,786,000.00

75,962,000.00

'5,701,000.00

182,442,000.00

Total deductions from gross deposits
Total resources

1,150,159,000.00

Cleveland.
Gold bullion and United States coin
United States gold certificates (including clearing-house certificates)
Gold coin and certificates in vault
Gold settlement fund, Federal Reserve Board
Gold with foreign agencies




2,548,000.00

510,701.32

Total earning assets.

Total gold held by banks.

7,102,000.00

5,169,000.00
4,493,000.00
15,000,000.00

2,194,000.00

S3,365,975.00
25,787,300.00
37,664,000.00
4,725,000.00

Richmond.
$573,457.50
5,728,000.00

$29,153,000.00
37,664,000,00
4,725,000.00

22,116,200.00
1,837,500.00

71,542,000.00
1 Including unpaid portion of bonds sold to individual subscribers.

221,139,000.00
Atlanta.
SI, 548,322.72
4,169,000.00

$6,302,000.00
22,116,000.00
1,837,000.00
30,255,000.00

12,482,000.00
1,575,000.00

$5,717,000.00
12,482,000.00
1,575,000.00
19,774,000.00

W
O

y

Statement

showing condition of each Federal Reserve Bank and of the system on Dec. 31,

1917—Continued.

RESOURCES—Continued.
[Detailedfiguresshown for each bank in first column represent items as reported to the Board;figuresin second column, printed in italics, indicate results of consolidation according
to methods used in the compilation of the Board's weekly statement.]
Cleveland.
Gold with Federal Reserve agents
Gold redemption fund with United States Treasurer

$55,

369,

700.00

98, 800.00

Richmond.

$55,370,000.00 $31, 601,850.00
99,000.00
485,087.15
127,011,000.00

Total gold reserves
Lesal tender notes (including clearing-house certificates}
Silver certificates (including clearin£r-hou°e certificates')
Silver c o i n . . .

188,

171.85

.

$31,602,000.00 $50,701,320.00
485,000.00
1,119,140.98

o
w
HI

13,200.00
397,889.00
4,626.00
164,000.00

416,000.00

62,506,000.00

72,010,000.00

150.00

25, 393,314.34

21, 111,

990.95

42,896,000.00
21,112,000.00

13, 156,126.71

..

8, 268,

1, 236,450.00

010.00

3, 221,
28, 050,

21,021,000.00

2,897,000.00
1,491,000.00

w
o
1,491,000.00

1,969,000.00

31,271,000.00

14,524,000.00
6,497,000.00

2,397,000.00

1, 969,000.00

000.00
000.00

6,497,061.67

1,237,000.00

8,268,000.00
x

29,565,000.00
13,156,000.00
42,721,000.00

64,008,000.00

Total bills on hand

Other United States bonds owned

2,628,250.00
11,895,589.16

4, 171,060.00

V 1f.S 027.27

Member banks' collateral notes
All other bills discounted
Hills discounted for members and Federal Reserve Banks
Bills bought in open market

284,372.00
503,831.60

7, 233.38

92,344.97
7,000.00
!

92,000.00

788,000.00

103,554,000.00

All other earning assets




71,594,000.00

62,342,000.00

127,249,000.00

Total reserves

Total earnina assets
9

$50,701,000.00
1,119,000.00

238,000.00

Legal tender notes, silver, etc

One-year Treasury notes
United Statss certificates of indebtedness
United States Government short-term securities
Municipal warrants

Atlanta.

112,500.00
51,748.00
16.85

897.00

49, 472.00

OS

46,019,000.00

25,697,000.00

Due from other Federal Reserve Banks—Collected funds
Due to other Federal Reserve Banks—Collected funds

11,206,000.00

Due from other Federal Reserve Banks—Net

Exchanges for clearing house
Checks and other cash items
National bank notes and notes of other Federal Reserve Banks
Mutilated currency (other than own Federal Reserve notes) forwarded for
redemption
Due from Assistant Treasurer of the United States
Collection items—Debits:
Federal Reserve Banks—Transfers bought
Federal Reserve Banks—Other items
Branches and offices
*
Bond coupons
Member and nonmember banks and bankers
Uncollccted items
Total deductions from gross deposits

All other resources:
Interest accrued on United States securities
Expense current
Bank premises
Other deferred charges
Dividend account, including premium on surrendered stock
Disbursements, Liberty Loan No. 2
Disbursements, War-Savings Stamps
Overdrafts—Member banks
Nickels and cents
Total all other resources..
Less all other liabilities:
Discount earned on bills discounted..
Discount earned on bills bought
Interest earned—Municipal warrants.




2,477,038.78
1,275,547.12

11,206,205.39

924,753.63
458.00
1,080,260.00

1,202,000.00
161,213.03
20,828.26
415,565.00

2,552,616.60
56,940.23
2,395,950.00
232,250.00

494,265.00
252,000.00
1,164,000.00
8,869,384.45

6,858,948.47

803,000.00
3,6C8,787.35
674,174.47

o
w

110,433.15
12,633,421.50

10,720,627.38

8,865,130.93

o

H

25,529,000.00

18,177,000.00

19,249,000.00

H

36,735,000.00

18,177,000.00

SO, 461,000.00

H

21,575.24
133,315.47
300,000.00
9,065.24
105,253.79
40,971.15
2,250.59
50,074.18
7. 43
662,513.09

306,848.85
114,868.82
164. 77

Statement showing condition of each Federal Reserve Bank and of the system on Dec. 31,

1917—Continued.

00

RESOURCES—Continued.
[Detailedfiguresshown for each bank in first column represent items as reported to the Board; figures in second column, printed in italics, indicate results of consolidation according
to methods used in the compilation of the Board's weekly statement.]
Cleveland.

Less all other liabilities—Continued.
Interest earned—United States securities
Penalties on deficient reserves
Sundry profits..
Unearned discount on bills discounted
Unearned discount on bills bought
Service charges net
Difference account
Profit and loss
Suspense account

. .

Richmond.

Atlanta.

$46,492.23
19,585.89
1,010.55
58,610.33
41,594.05
4,386. 69
115.33
28,154.92
20.00

. .

o
w
H

o
hrj

H

W
hrj

Total all other liabilities

621,852.43
$41, 000. GO

A11 other resources, net
$267,538,000.00

Total resources

Chicago.

Gold bullion and United States coin
United States gold certificates (including clearing-house certificates)
Gold coin and certificates in vault
Gold settlement fund, Federal Reserve Board
Gold with foreign agencies
Total gold held by banks




$78,345.00
32,110,960.00
. .

58,960,460.00
7,350,000.00

St. Louis.
SI, 447.50
5,087,690.00

$32,189,000.00
68,961,000.00
7,350,000.00
98,500,000.00

$118,158,000.00

126,743,000.00

17,884,000.00
2,100,000.00

Minneapolis.
SO, 688,900.00
8,270,770.00

$5,089,000.00
17,884,000.00
2,100.000.00
25,073,000.00

19,486,500.00
2,100,000.00

o
$14,960,000.00
19,487,000.00
2,100,000.00
36,547,000.00

Gold with Federal Reserve agents
Gold redemption fund with United States

Treasurer.

f 130.723,530.00
646,490.00

I

Total gold reserves
Legal tender notes (including clearing-house certificates).
Silver certificates (including clearing-house certificates)...
Silver coin
Legal tender notes, silver, etc




32,909,950.00
878,225.00

58,369,000.00

32,910,000.00
878,000.CO
70,335,000.00

179,105.00
231,924.00
2,120.00

4,000.00

767,000.00

413,060.00

230,833,000.00

59,136,000.00

9,182,429.93

cj
>

70,748,000.00

57,742,749.95
47,375,871.75
105,119,000.00
9,182,000.00

7,362,724.15

33,460,000.00
7,363,000.00

1,444,000.00

W

ft
1,888,000.00
ft
to
1,340,000.00

25,380.00
960,758.32

566,536.89

804,554.29

H

1,340,000.00
500.00
1,444,000.00

3,378,000.00

H

1,887,990.00
2,233,000.00

7,007,000.00
3,378,000.00

13,070,000.00
7,167,000.00
20,237,000.00

7,166,677.76

40,823,000.00
2,233,400.00

7,006,600.00

d
o
w

1,059,992.00
12,010,457.01

7,905,420.00
25,554,815.60

114,301,000.00

w
w

805,000.00

567,000.00

986,000.00

w
ft

125,491,000.00

Total earning assets
Due from other Federal Reserve banks—Collected funds
Due to other Federal Reserve Banks—Collected funds
Due from other Federal Reserve Banks—Net
Exchanges for clearing house
Checks and other cash items
National bank notes and notes of other Federal Reserve Banks.,

32,366,000.00
930,000.00

395,480.00
370,603.00
543.50

611,500.00
340,150.00
12,152.00

Total bills on hand
Other United States bonds owned
United States Government long-term securities
One-year Treasury notes
United States certificates of indebtedness.
United States Government short-term securities
Municipal warrants.
Bill of lading drafts
AII other earning assets

32,366,430.00
929,900.00

229,869,000.00

Total reserves
Member banks' collateral notes.
All other bills discounted
Bills discounted for members and Federal Reserve Banks
Bills bought in open market

150,723,000.00
646,000.00

45,067,000.00

24,451,000.00

%
ft

11,283,058.19
8,449,634.85

40,700,661.92
34,205,435.85

2,834,000.00

6,495,000.00
1,517,549.12

514,252.43

475,000.00

2,047,705.00

W

599,179,46
169,361.00

c
>

Statement showing condition of each Federal Reserve Bank and of the system on Dec. SI,

1917—Continued.

RESOURCES—Continued.
[Detailedfiguresshown for each bank in first column represent items as reported to the Board;figuresin second column, printed in italics, indicate results of consolidation according
to methods used in the compilation of the Board's weekly statement.]
Chicago.

Mutilated currency (other than own Federal Reserve notes) forwarded for
redemption
Collection items—DebitsFederal Reserve Banks—Transfers bought
Federal Reserve Banks—Other items
Branches and offices .
Member and nonmember banks and banker s

$8,178,412.26
8,435,661. 74
9 915 446.23

%1C, 317,000.00

%5,797,000.00

22,812,000.00

8,631,000.00

384,846,000.00

Kansas City.




H

3,063,947.48

28,522,000.00

Total resources

Tctal gold held by banks

w
nj
o
w

SI, 235,000.00
729,552.53

1,465,000.00
6,665,875.45
310,077.65
5 274 225.57
§28,522,000.00

Total deductions from gross deposits

Gold coin and certificates in vault
Gold settlement fund, Federal Reserve Board
Gold with foreign agencies

Minneapolis.

840,000.00

Uncollected items

Gold bullion and United States coin
United States gold certificates (including clearing-house certificates)

St. Louis.

127,015,000.00

ion,830,000.00

Dallas.

San Francisco.

$127,180.00

116,202,525.00

399,633,994.71

1,591,780.00

11,773,000.00

10,238,560.00

$1,711,000.00
87,263,000.00
2,025,000.00

$11,900,000.00
24,520,700.00 24,520,000.00
1,837,500.00
1,838,000.00

17,072,000.00
2,887,500.00

396,715,160.00
$496,349,000.00
$26,441,000.00
17,672,000.00 302,981,237.50 302,981,000.00
52,500,000.00
2,888,000.00 52,500,000.00

41,599,000.00

88,258,000.00

47,001,000.00

H
o

Total.

$118,742.50

37,263,377.50
2,625,000.00

O
H

851,830,000.00

m
W

o

Gold with Federal Reserve Agents
Gold redemption fund with United States
Treasurer

42,025,170.00
507,045.00

Total gold reserves
Legal tender notes (including clearing house
certificates)
Silver certificates (including clearing house
certificates)
Silver coin
Legal tender notes, silver, etc
Total

Total earning assets




25,037,000.00

46,993,550.00

46,993,000.00

803,169,315.00

803,169,000.00

507,000.00

1,217,607.02

1,218,000.00

24,335.00

24,000.00

19,406,630.15

19,406,000.00

64,513,000.00

94,018,000.00

1,674,405,000X0

11,000.00

155,250.00

66,425.00

34, 715,268.00

45 810.00
843.00

487,436.00
136,020.89

279,284.00
63,113.55

14,272,909.00
231,684.59

cj
>

58,000.00

779,000.00

409,000.00

49,220,000.00

84,189,000.00

65,292,000.00

94,427,000.00

1,723,625,000.00

17,277,467.89
17,776,976.31

1,337,928.75

Total bills on hand
United States bonds to secure circulation
Other United States bonds owned
United States Government long-term securities..
One-year Treasury notes
United States certificates of indebtedness
United States Government short-term securities..
Municipal warrants
Bill of lading drafts
All other earning assets

•

25,036,675.00

84,131,000.00

reserves....

Member banks' collateral notes
All other bills discounted
Bills discounted for members and Federal Reserve
Banks
Bills bought in open market

42,025,000.00

940,000.00
7,799,996.88
35,055,000.00
1,338,000.00

2,316,688.32
23,463,512.86

222,381,459.16
437 930 423.43

14,140,549.66

8,740,000.00
14,140, 000. 00 17,082,455.93

25,780,000.00
17,083,000.00 273,235,704.90
42,863,000.00

933,548,000.00

36,393,000.00
8,000,000.00
849,090.00

2,732,400.00
1,763,700.00
8,849,000.00

1,784,000.00

2,455,000.00

4,496,000.00

1 784 000.00

1 500 000.00
1,430,000 00

O
rrj

10,732,400.00
41,096,532.05

2,455,000.00

1 430 000.00

51,829,000.00
26 792 000.00
43 050 500.00

1,500,000.00

69,842,000.00
988,145 44
3,610,084.26

150,458.74
682,058.19

29,639,000.00

o
4,598,000.00

832,000.00
47,026,000.00

H

660,311,000.00
273,237,000.00

22,880,000.00

o
w

46,818,000.00

1,059,817,000.00

GO

Statement showing condition of each Federal Reserve Bank and of the system on Dec. 31, 1917—Continued.

00

to

RESOURCES—Continued.
[Detailed figures shown for each bank in first column represent items as reported to the Board;figuresin second column, printed in italics, indicate results of consolidation according
to methods used in the compilation of the Board's weekly statement.]
Kansas City.

San Francisco.

Dallas.

Total.
>

Due from other Federal Reserve BanksCollected funds
Due to other Federal Reserve Banks—Collected
funds
Due from other Federal Reserve Banks—Net.

r

$2,731,547.83

$2 732,000.00

72,871.41
Exchanges for clearing house
160,809.46
Checks and other cash items...
National Bank notes and notes of other Federal
216,300.00
Reserve Banks
Mutilated currency (other than own Federal
Reserve notes) forwarded for redemption)
Checks lost in transit
Due from Assistant Treasurer of the United
States
Collection items—Debits:
Federal Reserve Banks—Transfers bought.. 5,683,982.31
3, 466,329.80
Federal Reserve Banks—Other items
Branches and offices
Bond coupons
Member and nonmember banks and bankers. 15,583,135.50

$8,499,000.00

$5,140,000.00
151,154.45

20,566,989.16
25,276,874.76

2 181 816.08
4,598.63

hxj

H
3,780,011.00

877,826.00

13,867,928.00
1 768,450.00
58.00

300,000.00

552,000.00

4,372,699.26
827,144.24

25,426,809.51
95,022,994.73
12 647 648.59
110,433.15
101,875,605.30

1,954,715.68
1,744,714.82
1 747 950.24

5,754,831. 71

4,295,012.50

400,000.00

$15,086,000.00

12,806,000.00

297,116,000.00

27,916,000.00

Total deductions from gross deposits

O
W
H
O

25,184,000.00

Uncollccted items




44 699 494.34

768 876.52

...

5 per cent redemption fund against Federal Reserve Bank notes

$74,307,445.95

$5,908,933.84

15,086,000.00

17,946,000.00

305,613,000.00

400,000.00

136,700.00

137,000.00

536, 700.00

537,000.00

w
o

All other resources:
Interest accrued on United States securities.
Expense current
Bank premises
Furniture and equipmentCost of unissued Federal Reserve currency.
Other deferred charges
Dividend account, including premium on
surrendered stock
Disbursements, transit department
Disbursements, Liberty Loan No. 1
Disbursements, Liberty Loan No. 2
Disbursements, War-Savings Stamps
Overdrafts—Member banks
Difference account
Nickels and cents
Total all other resources
Less all other liabilities:
Discount earned on bills discounted
Discount earned on bills bought
Transfers bought and sold, net charges...
Interest earned—Municipal warrants
Interest earned—United States securities.
Commissions earned
Penalties on deficient reserves
Sundry profits
Unearned discount on bills discounted
Unearned discount on bills bought
Reserved for sundry expenses
Service charges, net
Difference account




23,449.37
144,156.27
120,000.00
26,981.09
13,232.19

35,961.05
24,429.49
222,607.05
568.24
523,843.20
464. 72
2,740.82

45,024.61
277,471.74
420,000.00
26,981.09
13,232.19
9,065.24
105, 253.79
35, 961.05
24, 429.49
263, 578.20
2, 818.83
573, 917.38

464.72
2, 748.25

1,138,433.49

1,800,946.58

270,804.44
181,770.29
38,658.39
424.46
79,416.50
52.08
17,297.67

577,653.29
296,639.11
38,658.39
589.23
125,908.73
52.08
36,883.56
1,010.55
166,023.65
87,816.23
50,000.00
26,155.41
115.33

107,413.32
46,222.18
50,000.00
21,768.72

>

"A
y

A
d
>

w
w
o
w
H

o
hrj

H

w
w
w
w
w

m
M
W

W

o
>

fcd

00
CO

Statement showing condition of each Federal Reserve Bank and of the system on Dec. 31,

OO

1917—Continued.

RESOURCES—Continued.
[Detailedfiguresshown for each bank in first column represent items as reported to the Board; figures in second column, printed in italics, indicate results of consolidation according
to methods used in the compilation of the Board's weekly statement.]
Kansas City.

Dallas.

San Francisco.

Total.

Less all other liabilities—Continued.
Profit and loss
Suspense account

$14,475.91

$42,630.83
20.00

Total all other liabilities

828,303.96

1,450,156.39

Total resources

$159,531,000.00

$110,153,000.00

w
$.151,000.00

$310,000.00

All other resources, net

O

.1,089,945,000.00

159,501,000.00

H
O

M
LIABILITIES.

Boston.
Capital
Capital—suspense account
Capital paid in
Government deposits
Due to members—reserve account

Due to other Federal Reserve Banks, collected funds
Due from other Federal Reserve Banks, collected funds
Due to other Federal Reserve Banks, net

Cashier's expense, return item, and dividend checks
Federal Reserve bank drafts
Federal Reserve exchange drafts
Collection items—credits:
Federal Reserve Banks—transfers sold
Federal Reserve Banks—other items




$18,684,850.00
11,100.00

$5,858,450.00

2,419,414.94
82,244,369.22
3,870,139.46

New York.

$5,858,000.00
2,419,000.00 11,870,707.74
82,245,000.00 652,791,808.26
7,610,609.86
3,870,000.00

23,482.60

4,821,389.92
147.34

$18,696,000.00
11,871,000.00
652,792,000.00

4,832,816.11
84,574,264.34
4,296,240.29

96,142,000.00
4,833,000.00
8/h574,000.00

4,296,000.00
435,026.66
9.00

5,156,779.75

o

$6,141,850.00
300.00

7,611,000.00

25.15

2,332,237.7

Philadelphia.

250,000.00
2,850,790.00

W
O
P

Member and nonmember banks
Miscellaneous
.
G ovemment account

11,445,199.35
90.40

.....

554,672.42
13,801,000.00

Collection items

Foreign government credits
Due to nonmember banks clearing account

3,335,930.00
10,317,630.16
13,653,000.00

Total gross deposits

Total deductions

77,296,820.00




I 121,855,000.00

731,693,000.00

102,335,000.00 |

>
t-1

97,325,755.00

456,338,565.00

w
O
W
H

j

4,097,520.00

55,844,760.00
3,140,000.00

4,348,590.00
27.50

4,097,520.00

58,984,760.00

4,348,617.50

73,199,000.00

Federal Reserve notes in actual circulation

All other liabilities:
Discount earned on bills discounted
Discount earned en bills bought
Transfers bought and sold, net charges
Interest earned—Municipal warrants
Interest earned—United States securities
Profits realized on United States securities
Commissions earned
Penalties on deficient reserves
Sundry profits
Discount on U nited States bonds
Unearned discount on bills discounted
Unearned discount on bills bought
Unearned interest on municipal warrants
Reserved for sundry expenses
Liberty 1 oan bonds—$10 participation certificates

28,152,000.00

45,532,000.00

Other deposits, including foreign government credits..

Federal Reserve notes outstanding
Less:
Federal Reserve notes on hand
Mutilated Federal Reserve notes forwarded for redemption

24,061,904.97

35,553,478.43
94.47

571,117.13
502 397 30
107. 80
5,202.73
94,784. 86
11,101.60
6,938.15
6,105,39
253. 72
6,875. 00
249 459 57
74 220 29

397,354,000.00

2,240,121.86
1,304,701.11
5,776.03
224,780.66
13 680 73
4,815.90
19,458.52
3,833.13
611,916.47
635 158 66
2,366.S8
1,444.55
227,970.00

92,977,000.00

W

302,264.77
300,529.44
1,658.06
66,561.20

4,382.21
3 720 84 1

96,844.03
64,057.37
1.11
19.79

o

00

Statement showing condition of each Federal Reserve Bank and of the system on Dec. 31,

1917—Continued.

CO

LIABILITIES—Continued.
[Detailedfiguresshown for each bank in first column represent items as reported to the "Board;figuresin second column, printed in italics, indicate results of consolidation according
to methods used in the compilation of the Board's weekly statement.]
Boston.
All other liabilities—Continued.
Contracts to deliver Liberty loan bonds sold..
Service charges, net
Difference account
Profit and loss
Discount on bills sold
Interest on participation certificates
Suspense account
Total all other liabilities..
Less all other resources:
Interest accrued on United States securities
Service charges accrued
Expense current
Exchange paid
Bank premises
Furniture and equipment
Cost of unissued Federal Reserve currency
Other deferred charges.
.................:
Dividend account, including premium on surrendered stock..
Disbursements, transit department
Disbursements, Liberty loan No. 1
Disbursements, Liberty loan No. 2
Disbursements, war saving stamps
Revenue stamps
Repairs and alterations, remodeling account




$37,876.35

11,590.56

New York.

$6,186.25
80,922.53
339,649.98
8,077.03
316.31
S9,981.08

Philadelphia.

S79,581.63
41.51
176,626.52

o
w
H
O

1,275. 75

1,628,036. 45

5,821,157.68

1,097,564.23

21,958,75

73,620.28

255,690.82
69.10

656,534.85

58,906.44
S, 238.21
141,768.66
4.85
10,000.00
29,123.11
511.99
2,055.51
467,727.53
101,701.36

8,973.83
33,666.91
1,462.24
3,926.85
96,132.22
142,887.62

10,450.00

445,248.14
15,380.02
1,466,719.68
147,206.18
48,041.40
299,982.22
12,326.39
5,078.20

100,032.85

w
o

12,804.81

Overdrafts, member banks.
Difference account
Nickels and cents

813.26
2,115.81

All other liabilities, net

209.09

575,470.40

Total all other resources

628.85
257. 26

3,171,023.47

933,084.41

1,050,000.00

Total liabilities

2,650, 000. 00

165,000.00

182,442,000.00

'

1,150,159,000.00

221,139,000.00

Cleveland.

Richmond.

>
tr1

Atlanta.
O

Capital
Capital paid in
Government deposits
Due to members—reserve account
Due to other Federal Reserve Banks, collected funds
Due to other Federal Reserve Banks, net
Cashier's expense, return item, and dividend checks
Federal Reser\7e bank drafts
Federal Reserve exchange drafts
Collection items—credits:
Federal Reserve Banks—other items
Branches and offices
Member and nonmember banks
Miscellaneous.
Collection items
Due to nonmember banks clearing account
Other deposits, including foreign government credits

$8,026,100.00
!
30,578,247.23
109,724,561.05




$8,026,000.00
30,578,000.00
109,725,000.00

2,253,761.15
45,356,855.67
3,644,461.78

w

$2,812,750.00
$3,664,000.00
2,254,000.00
45,357,000.00

4,476,782.74
36,849,923.90

$2,813,000.00
4,477,000.00
36,850,000.00

Hi

M
' 3,644,000.00

30,574. €

75,649.91

15,978.73
115,280.00

3,760,358.95

G, 457,014.59

12,720,415.44
72,739. 80

8,726,400. 22

3,094,279.83
222,655.30
5,423,001.18
.33

16,584,000.00

15,260,000.00

91,160.59

w
ti

i

i
8,871,000.00
98)000.00

156,981,000.00
105,669,700.00

r

97,903.27
94,000.00

Total gross deposits
Federal Reserve notes outstanding

$3,663,950.00

66,515,000.00
60,770,135.00.

W
O
l

50,296,000.00
66,867,420.00

00

Statement shoiving condition of each Federal Reserve Bank and of the system on Dec. 31,

00
00

1917—Continued.

LIABILITIES—Continued.
[Detailed figures shown for each bank in first column represent items as reported to the Board; figures in the second column, printed in italics, indicate results of consolidation
according to methods used in the compilation of the Board's weekly statement.]
Cleveland.
Less:
Federal Reserve notes on hand
Mutilated Federal Reserve notes forwarded for redemption

$4,189,830.00
16,500.00

$1,909,030.00
43,500.00

3,786,525.00

4,200,330.00

1,952,530.00

$101,883,000 00

Federal Reserve notes in actual circulation
All other liabilities:
Discount earned on bills discounted
Discount earned on bills bought
Transfers bought and sold, net charges
Interest earned—Municipal warrants
Interest earned—United States securities
Interest earned—Bill of lading drafts
Penalties on deficient reserves
Sundry profits
Discount on United States bonds
Unearned discount on bills discounted
Unearned discount on bills bought
Unearned interest on municipal warrants
.
Unearned interest on certificate of indebtedness
Reserved for sundry expenses
.
*
Service charges net
.
Difference account
Profit and loss




Atlanta,

$3,666,525.00
120,000.00

Total deductions

Total all other liabilities

Richmond.

-

333,9C0.67
309,205.71
9,305.10
7,399.92
198,350.57
13,617.31
2,804.95

..

-

...
.
. . . .

116,570.72
62,600.28
11,472.23
309. 98
41,679.01
184. 66
177,386.94
1,344,968.11

$64,915,000.00

$56,564 000 00

181,023.19
53,291.98
14,177.99
1,903. 75
98,038.45
1,436.95
12,038.82
2,348.03
437. 50
37,292. 75
26,635.01
1,229.25
34,332.08
30,696.91
51,365.93
546,849.19

o
w
H

r1

w
o
>

Less all other resources:
Premium on United States bonds
Interest accrued on United States securities
Expense current
Exchange paid
....
Sank premises
Cost of unissued Federal Reserve currency
Other deferred charges
Dividend account, including premium on surrendered stock
Disbursements, transit department
Disbursements, Liberty loan No. 1
Disbursements, Liberty loan No. 2
Disbursements, war saving stamps... .
Service charges paid—Collection department
Overdrafts member banks
Difference account
Nickels and cents
Total all other resources

!

209,469.52
62,878.48
215 264 85
57.62

25,814.07
101,837.42
140,875.20
588.24
2,237.36
1,650.27
32,973.95

197. 40
56,722. 22
6,260. 62
131,404. 60
1,582. 61
119 10
11,792.01
870.35

272.01
407.51

696,619.38

412,350.10
648,000.00

Total liabilities

Due to other Federal Reserve Banks, collected funds
Due from other Federal Reserve Banks collected funds




126,7lfS, 000.00

St. Louis.

3,052,436.84
169,174,348.05
6,165,983.77
5 992 720.41

$9 092 000.00
3,052,000.00
169,174,000.00

5,430,359.99
45,796,967.60

118,158,000.00
Minneapolis.
§2 612,450.00
7,700.00

$3 474 600.00

$9 091 700.00

Due to other Federal Reserve Baiiks net

Cashier's expense, return item, and dividend checks

134,000.00

267,538,000.00
Chicago.

Cd'pitdl paid in Governvieni deposits.
Due to members—reserve acSbunt

w

H
O

A U other liabilities, net

Capital
Capital—suspense account

O

44,514.02
1,180.05

$3 475 000.00
5,430,000.00
45,797,000.00

8, 716,529.47
39,347,899.01

$2,620,000.00
8,717,000.00
39,348,000.00

W
O

173 000 00
244,404.64

197,223.90

31,488.47

00

Statement showing condition of each Federal Reserve Bank and of the system on Dec. 31, 1917—Continued.
LIABILITIES—Continued.
[Detailed figures shown for each bank in first column represent items as reported to the Board; figures in the second column, printed in italics, indicate results of consolidatio:
according to methods used in the compilation of the Board's weekly statement.]
Chicago.

Federal Reserve bank drafts
Federal Reserve exchange drafts .
Collection items—credits:
Federal Reserve Banks—'transfers sold
Federal Reserve Banks—other items
Branches and offices
Member and nonmember banks
Miscellaneous
Government account

Minneapolis.
$5,096.06
325.90

14,639,568.31
34,701.89
22,465.94
7,228.62

H
O

1,125,226.30
163,096.52

w
$S,395,000.00

36,300.00

93,432.34

3,198,413.97

w

2,069,429.73

$12,151,000.00

$19,438,000.00

*

O

$820,000.00
1,468,334.24
779,251.41
8,843,947.26
42,724.30

$1,470,000.00
3,619,175.99

Collection items.

Foreign government credits
Due to nonmember banks—clearing account

3,199,000.00

Total gross deposits

Federal Reserve notes outstanding
. .
Less:
Federal Reserve notes on hand
Mutilated Federal Reserve notes forwarded for redemption

93,000.00

36,000.00

195,036,000.00

Other deposits, including foreign government credits

63,471,000.00

51,496,000.00

190,788,530.00

61,863,430.00

circulation




9,727,000.00
433,500.00

51,005,950.00

1,940,400.00

10,160,500.00

Total deductions
TPpdpTcil"RPVPTVPnote? in actual

St. Louis.

1,940,400.00

W
fed

1,420,8(55.00
171,000.00

W

o
180,628,000.00

1,591,865.00
59,923,000.00

49,414,000.00

All other liabilities:
Discount earned on bills discounted
Discount earned on bills bought
Transfers bought and sold, net charges
Interest earned—Municipal warrants
Interest earned—United States securities
Interest earned—Bill of lading drafts
Penalties on deficient reserves
Sundry profits
Collection department service charges
Discount on United States bonds
Unearned discount on bills discounted
Unearned discount on bills bought
Unearned interest on municipal warrants
Eeserved for sundry expenses
Liberty loan bonds—$10 participation certificates
Federal Reserve Bank transfer drafts
Federal Reserve Bank exchange drafts
Service charges, net
Difference account
Profit and loss
Total all other liabilities..
Less all other resources:
Premium on United States bonds
„,
Interest accrued on United States securities..,
Expense current
Exchange paid
Furniture and equipment
Cost of unissued Federal Reserve currency
Other deferred charges
Dividend account, including premium on surrendered stock..
Disbursements, transit department
Disbursements, Liberty loan Ko. 2
Disbursements, United States certificate of indebtedness




876,485.79
230,213.05
96,404.08
334.32

291,651.33
3,632.66
6,749.33
723.37
55.36
j
!
?
!
!
j
I

358,238.50
170,233.26
57,919. 95
13,691.40
110,300.98
7,492.56
14,968.34
920.50

242,284.63
72,476. 74
35,117.63
254. 60
49,184. 97
6,535.87
3,909. 94
701.02

59.60

272,959.85
45,127.48

103,036.43
30,385.77

4,833.62
1(53,100.00
1,064.20
283.25
34.075.

5,682.39
77,460.09

853.65

16,814.30
6.21
' i
*

223.16

122,690.76
2,150, 383. 93

106, 474.74
63, 695. 00
314, 834.15
223.97

50,590.69 I
!

12,748.15

49,383.55 |

920,129.78

610,402.63 I

39,057.53

6,353.15
24.850.94

17,841.63 \

236,477.15

112,686.71 I

80.19
44,498.74

66,065.25

43; 001.01

16,166.61

32,915.48

784.07

1,626.51

2,127.12

656, 421.38
32, 044.83
284. 904.44
2, 523.49

284,565.61
34,392.40
124,849.47

44,461.13
53,797.73

Statement showing condition of each Federal Reserve Bank and of the system on Dec. 31,

1917—Continued.

o

LIABILITIES—Continued.
[Detailed figures shown for each bank in first column represent items as reported to the Board; figures in the second column, printed in italics, indicate results of consolidation
according to methods used in the compilation of the Board's weekly statement.]
Chicago.
Less all other resources—Continued.
Disbursements, war savings stamps
Deferred charges, Liberty loan
Revenue stamps
Liberty loan bonds—$10 participation certificates
Overdrafts, member banks
Difference account
Nickels and cents

$329.16

I
!
j
|
i
I

Total all other resources.

$54.067.19
359.48
183,100.00
330,615. S3
539.40
70.27

c
H

774,048.01

Kansas City.
Capital
j $3,395,750.00
1,000.00
Capital—suspense account
Capital paid in
7,860,957.17
Government deposits
Due to members—reserve account
72,976,491.13
Due to other Federal Reserve banks, collected
funds
Due from other Federal Reserve Banks, collected funds
Due to other Federal Reserve Banks, net
Cashier's expense, return item, and dividend
)7O,542.14
checks
...,,..,

$90,000.00

Dallas.
$2,794,900.00

7,801,000.00
72,976,000. GO

6,609,284.55
44,155,240.99

H

M
H

$116,000.00
127,01,5,000.00

I

$3, S97,000.00

hj

310,250.19 I

384,846,000.00

j

Total liabilities

o

15.37
16. 61

S7S7. 24

2,060,259.27

All other liabilities, net




Minneapolis.

St. Louis.

San Francisco.

12,353,938.63
2,353,933.63

Total.
$70,699,100.00
40,800.00

$4,141, 750.00
20,700.00

$2,795,000.00
6,609,000.00
44,155,000.00

$.100, GOO. CO

103,830,000.00

!

740,000. co
$4,162,000.00
12,354,000.00 100,455,296.56
100,455, wo. 00
63,780,000.00 1,446,772,639.56 1,446, 773,000.00
O

29,951,099.95

4,363,664.79
2,847,694.30

8,840,414.71
1,516,000.00

104,903.32 ]

2,062,479.92 j . . .

9,013,149.90 ,

Federal Reserve bank drafts
Federal Reserve exchange drafts
Federal Reserve transfer drafts
Collection items—credits:
Federal Reserve Banks—-transfers sold
Federal Reserve Banks—other items
Branches and offices
Member and nonmember banks
Miscellaneous
Government account
Suspense
'
Collection items
Foreign government credits
Due to nonmember banks clearing account
Other deposits, including foreign government credits

1

120,523.40
2,605.40
3,142.00

1,027.07

991.19
3,142.00
275,000.00
5,621,630.98

752,924.90
5,355,942.73

4 726 170.00

2,033,496.85

3,567,924.90
44,449,293.87
1,742,956.16
131,989,909.69
395,251.42

2,662,719.31
741,049.45
3,291,101.68
81,803.71

7,228.62

'
8/250,000.00

11,595.000. GO

3 335 930.00
16,484,145.25

2,620,985.05

25,319.87

191,869,000.00

9,403,000.00

o

2 621,000.00

19,820,000.00

87,595,000.00

£6,000.00

O

1,758,917,000.00

fed

H3

Total gross deposits
Federal Reserve notes outstanding
Less:
Federal Reserve notes on hand
Mutilated Federal Reserve notes forwarded
for redemption
Total deductions

60,530,000.00

92,458,000.00
58,023,420.00

47,716,950.00

77,097,550.00

1,350,764,225.00

2,410,710.00

735,000.00

9,343,245.00

HH
hH

99,633,475.00

240,000.00

194,500.00

10,000.00

4,369,027.50

2,650, 710.00

929,500.00

9,353,245.00

fed

104,002,502.50
in

Federal Reserve notes in actual circulation
Federal Reserve Bank notes in circulation, net
liability
All other liabilities:
Discount earned on bills discounted... .
Discount earned on bills bought
Transfers bought and sold, net charges
Interest earned—Municipal warrants
Interest earned—United States securities...




55,373,000.00
8,000,000.00

46,788,000.00

8,000,000.00

1,246,762,000.00

67,744,000.00
8,000,000.00

8, 000,000.00
o

438,831.43
171,112.15
45,569.84
5 136.63
256,792.18

160,869. SO
116,481. 74
32,476.91
1,068.29
SO, 743.84

5 705 197.77
3,290,702.37
291,079.36
42,425.73
1,471,189.04

w

CO
CO

Statement showing condition of each Federal Reserve Bank and of the system on Dec. SI,

1917—Continued.

O'

LIABILITIES—Continued.
[Detailedfiguresshown for each bank in first column represent items as reported to the Board; figures in the second column, r rinted in italics, indicate results cf consolidation
according to methods used in the compilation of the Board's weekly statement.]
Kansas City.

All other liabilities—Continued.
Interest earned—Bill of lading drafts
Profits realized on United States securities..
Commissions earned.
Penalties on deficient reserves.
Sundry profits
Collection department service charges
Discount on United States bonds
Unearned discount on bills discounted
Unearned discount on bills bought
Unearned interest on municipal warrants
Unearned interest on certificates of indebtedness..
Reserved for sundry expenses
Liberty loan bonds—$10 participation certificates
Federal Reserve Bank transfer drafts...
Federal Reserve Bank exchange drafts
Contracts to deliver Liberty loan bonds sold
Service charges, net
Difference account .
Profit and loss
Discount on bills sold
Interest on participation certificates. .
Susioense account
Total all other liabilities




Dallas.

San Francisco.

Total.

^
>

$3 389. 20

50,145.39
35,54^. 03
1,914.19

$37 395 78
5.00

$22,487.24
11,101.60
20,618.8S
112,939.37
31,003.60
114.96
16,828.02
1,734,703.82
991.323.72
5,517.64

262.25

11,472.23
42,055.92

7.05

119,018. 52
780. 53

h*

H
C

H

U
l-rj

t

1

46, 710. 09
1,604.80
67,025.17

52 923 17

1,189 982 21

544,317.15

391,070.00
1,064.20
283.25
6,186.25
544.113.39
2,189.07
1,008,473.56
8,077.03
316.31
91,256. 83
15 853 791 27

w
w
N
Tfl
w
<

0

Less all other resources:
Premium on United States bonds ...
Interest accrued on United States securities.
Service charges accrued
Expense current
Exchange paid
Proiit and loss
Bank premises
Furniture and equipment
Cost of unissued Federal Reserve currency.
Other deferred charges
Dividend account, including premium on
surrendered stock
Disbursements, transit department
Disbursements, Liberty loan No. 1 . . . .
Disbursements, Liberty loan No. 2
Disbursements, United States certificates
of indebtedness
Disbursements, war saving stamps . . .
Service charges paid—Collection department
Deferred charaes Liberty Joan
Revenue stamps
Liberty loan bonds account—S10 participa- 1
tion certificates
i
Repairs and alterations, remodeling account .
Overdrafts member banks
Difference account
Nickels and cents
Suspense account
Total all other resources
All ofJier liabilitifs wt
Total liabilities




75 4h2 4 2
60,504. £0

28,1SS. 78

237 377.98

109,502.80

397, 759. S3
438, 259.27
8,238.21
2 441 975 39

|

435.73
55 585 43

55,585.43
i

136,736.31

287,611.51

32 97^ t:3

35,824. 77

217 458 33

42,507. 74

10,161.62

604,737.74

5,766.89

8,579.61

46,019.33

276,581.85

210.72

3,354,843.89

54,906.18

52,540.15

653,080.62

9, 795.22

64,097.24

54,153.44

1,322,976.35

1,057.33

16,798.53

86,449.96

w
w
o
w
H
C

2,523.49
119.10
54,657.19
5,437. 8S
j
163., 100.00
10,450. 00
355.212.07
497.81

2 766 70

350.63

2 168 76

7,253. 53

13,958.35

13,958.35

887,337. 34

!

504,504. 94
303,000.00
159,031,000.00

10,327,553.51

f,n nnn on
110,153,000.00

5 5°G 000 00
1

159,501,000.00

3,089,945,000.00
CO

Exhibit D.—INVESTMENT OPERATIONS OF FEDERAL RESERVE BANKS.

CO

Commercial paper discounted for members and oilier Federal Reserve Banks during each month in 1917, distributed by maturities, and totals for 1917,
1916, and 1915.
PAPER MATURING WITHIN 15 DAYS.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis.
Minneapolis
Kansas City
Dallas
San Francisco
Total

January.

February. March.

May.

June.

July.

August.

September.

1,902, 573 $21,307.
$847,389 $1,882,783 $3,816,628 $9,118,269 $9,493. 345 134,571, 777 $35, ,073,960116.
279,272 1,502,805 ,801,099 ,316,507 6,201. 947 547,878, 686 254,,205,950 46,569, 820 307,344.
862,985 14,596,
247,937 1,149,757 ,667,902 ,164,269 18,545;
38,818,843
17,174,
315,850 9,981,
182,617 2,499,000 ,416,237 ,730,998 4,416.
7,072,863
15,123,
559,333 25,063,
6,737,047 3,985,444 ,136,837 ,250,442 20,353.
44,511,
25,174,706
448,953
833,649 1,392,
398,738 1,557,
963,075
384,855
617,866
5,358,
,391,246 ,207,981 2,477.
612,209 12,901,
521,480 1,926,44!
18,656,376
25,552,
080,61 12,181,
400,500
2,324,6
626
17,128,
384,908 ,670,566 ,713,018 2,243,
102,081
252,628 1,011,
922,046 3,512,
376,428
4,011,0
,004
1,953,
577,600
60,223
29,510 2,931,
555,970 17,259,
75,606
334
25,913,
9,730,3
10,000
182,886
224,414
330,400 1,630,
162,630
400
841,
1,929,4
316,500
3,658,
126,302
392,721 2,482,
4,514
935
50,
400,9
25,931
3,320,
.0,804,495 1,646,032

Percent

April.

0.1

0.2

October.

$6,770,
,359,046,
11,962,
22,775,
21,490,
13,236,
80,684,
18,419,
5,120,
41,639,
10,682,
9,609,

November.

December.

Total.

$14,243,721 $20,137, 602 $174, 166,003
0,344,746, 768
,623,764,467 192,834,
17,402,072 32,125,
5,650 175, 777,337
746,220
28,180,622 38,051, 342
50,924,399 112,143, 939 350,;331,151
721,356
18,868.473 18,660, 329
463,238
127,880,288 110,649. 863
25,530,285 36,715,
131, '99,689
14,904,674
3,890, '02
39,i634,387
L605 209,' 900,693
63,996,325 33,698,
34,' 057,779
10,981,317
2,117,832
45, 941,273
18,261,156
9,206,

Per
cent.

2.1
78.0
2.3
1.8
4.2
0.8
5.1
1.6
0.5
2.6
0.4
0.6

o
w
H

o

!

!, 694,658134,967,987 69,958,620 691,247,410 403,310,779 164,039,110 488.
1,347,299 2,601,488,919 •*, 014,997,799 016,232,780 8,129,285,894
0. 2
0.4
5. 0
2. 0
6.0
32.0
0.9!
!
100.0
37.1

P A P E R MATURING A F T E R 15 DAYS B U T W I T H I N 30 DAYS.

Boston

$102,130 SI, 015,170 $298,485
22,354
69,457
23,139

New York

$180,269
30,753

Philadelphia

120,203

205,267

Cleveland

271,658
3S2,399

9,748

74,442
572,856

373,112

430,766

125,824
509,808

142,099

181,112

108,269

211,296,

Richmond
Atla-nta

,




137,441

$6,106,821 $2,760,025 $2,179,412 $1,105,029
428,914
1,289,269
747,493 3,151,604
403,791
1,283,516 1,674,570
3D4,123
568,323
275,794 3,338,040
175,775 1,090,043
974,081
$428,92!

$770,204

40,873

3,359,466

935,616

897,750

800,459

837,981

1,272,245

421,469

324,1451

235,517

1,019,960

475,233

509,^
949,270
713,285
964,005,

$9,918,861 $14,922,953
1,245,41'
9,777,321
708,9S:
5,174,169
663,990
1,328,520

6,206,425
13,084,185
1,852,203
1,333,061

$39,87S,294

21.8
20,ISO,0601 11.0
12,280,573
6.7

26,101,443: 14.2
9,669, CSOj 5.3
6,745,886

3.7

o
o

Chicago
St. Louis
Minneapolis...
Kansas City..
Dallas
San Francisco.
Total...
Percent

1,585,208 3,016,285
823,017 2,689,767
1,566,541
136,377
648,012
496,S87
101,493
135,632
474,815 1,879,306

3,841,465
3,486,396
617,798
373,504
66,742
1,863,551

5,105,413
1,423,566
520,369
960,006
387,235
2,073,355

3,737,096
3,927,090
440,027
2,039,877
144,133
3,731,567

26,327,005 14.4
15,030,217
8.2
0,308,2S1 3.4
5,577,321
3.0
1,624,685 0.9
13,542,592 7.4

1,703,682 2,355,001 2,320,539 3,821,098 4,980,467 18,128,601 12,069,528 13,776,695 15,900,769
0.9
8.7
2.1
1.3
6.6
1.3,
9.9
2.7

17,515,171
9.5

29,509,888
16.1

61,202,598
33. 4

183,284,037

337,583
73,000
179,316
5,738
11,630
7,863

23,962
87,317
396,500
15,050
16,143
9,266

552,993
8,061
13,024
142,74
87,179
8,578

451,247
724,023
982,267
88,985
178,608
200,577

258,174 2,234,454 5,183,125
691,898
486,417
615,065
900,098
329,286
220,678
279,022
183,357
344,136
236,006
195,304
64,580
658,891
114,823 2,520,000

100.0

PAPER MATURING AFTER 30 DAYS BUT WITHIN 60 DAYS.
Boston...
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total...
Per cent

$120,008
123,129
184,102
103.128
626.129
479,583
320,909
31,546
356,354
38,780
111,350
25,509

$702,647 $574,161 $454,771 $445,623 $2,082,554
184,002
39,924
164,070 1,826,898
144,973
234,028 234,570
338,565 1,640,491
53,762
7,490
161,618 2,058,820
67,460
9,249
749,417
830,918 1,393,348 1,021,738 1.522,709
177,403 352,060 420,936
753,648 1,127,223
43, 704 147,414 1,408,387
199,024 2,753,808
84,994
622,850
71,133 188,549 1,423,881
743,568
41,997 2,406,583 1,555,648 2,187,386
23,452
352,915
763,251
39,378
20,137
101,618 314,122 745,610
452,757
427,308
34,705
46,790 216,360
132,380 2,883,932

2,586,587 3,087,028 2,800,771 7,415,839
0.9
1.0
1.1
2.6




$1,583,857 $2,936,784
1,682,261 1,638,995
256,472
940,462
1,052,308
769,585
1,783,789
2,161,
1,602,495 1,422,901
3,805,235 3,354,411
1, 730,948 1,055,282
1,628,948 3,617,620
574,514
828,020
725,686 1,084,736
1,176,061
879,106

$1,567,284
3,575,917
717,629
840,816
2,405,684
1,420,993
4, 784,878
2,918,9.50
1,059,761
864,681
771,092
2,762,084

7,570,418 19,922,679 18,674,460 19,627, 701 23,695,709;
2.6
8.3|
6.5
7.0

o

$1,274,929
5,802,649
716,249
1,407,251
1,606,785
1,596,045
6,783,293
1,736,583
1,140,637
826,044
303,531
1,923,762

$4,086,615 $25,837,504 $41,072,737 15.3
6,708,561 40,785,107 62,070,486 18.1
1,575,537 2,897,808
9,789,075 3.6
0,340,481 5,913,400
18,873,618 6.9
1,520,664 2,444,608
18,673,'
6.8
1,886,530 2,850,888
14,090,705 5.2
45,664,391 16. 8
7,961,590
14,101,738
18,213,616
5,258,450
6.7
3,090,450
1,683,851 1,400,3S7 17,828,740 6.5
8,735,283 3.2
1,709,514 2,634,597
6,140,458 2.2
312,128
790,518
23,602,152 8.7
9,718,05'
3,803,274

25,177, 758
16.6

H
O

47,309,733 108,020,530 2S5,967,339|
100.0
37.8
37.8
W

o

cO

O
Commercial paper discounted for members and other Federal Reserve Banks during each month in 1917, distributed by maturities, and totals for 1917,
GO
1916, and 1915—Continued.

PAPER MATURING AFTER 60 DAYS BUT WITHIN 90 DAYS.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta .
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Per cent.....

January. February. March.
$122,929 8332,388 $409,489
92,305
126,304 211,842
88,294
30,769
12,080
26,105
16,611
16,690
815,186 639,635 760,054
918,064 367,843 590,678
19,696 141,88*7
47,659
10,811
60,765
67,247
19,706
20,193
197,410
20,515
35,190
49,344
80,110 202,637
199,020
32,344
74,157
37, 707

September.

April.

May.

$196,113
52,039

$934,332 $3,365,573 $3,012,317 U, 358,337 $1,768,744
138,383 1,981,604 6,048,980 4,060,991 5,471,685

2o,477
37,016
927,872
370,824
92,881
266,051
258,107
98,146
388,719
139,828

2,639,640 1,849,289 2,434,735 2,854,073
0.7
0.7
0.6
0.5

June.

July.

August.

October.
$2,389,172

November. December.

Total.

149,513

1,357,3(>2

1,851,326

1,245,477

1,998,716

4,138,169

1,551,606

1,071,418

925,859

962,097

2,279,956

2,186,082

466,491

1,690,522

1,748,877

1,837,722

1,106, 735

00!), 235

200,778

623,025

311,488

547,589

6(i5,261

1,200,034

310,322

399,209

1,087,612

1,075,555

412,992

337,863

125,995

3,089,878

1,534,758

654,651

1,344,130

1,971,127

$32,169,170 $44,947,757
31,948,847 44,020,836
3, 795,492
11,731,106
6,577,943
7,857,827
3,082, 713
3,163,887
1,782,417
951,589
6,555,669
12,267,641
9,038,535
2,239,404
6,692,991
1,213,629
6,993,324
2,071,544
5,225,533
383,571
6,981,795
2,655,771

6,424,188 17,831,190 23,368,229 21,285,699 18,819,132

34,663,069
9.0

108,053,986 145,695,005
28.1
37.7

$1,195,955

20. 3
27. S

380,518,235

$233,060

Per
cent.

14,684,329

258,424

589, 704

1,966,750

2,923, 701

469,187

3,629,448

170,213

960,985

1,212,024

650,069

760,418

1,100,987

1,741,247

2,114,040

2,770,582

2,032,354

1,927,100

1,276,167

366,884

587,870

897,656

937,156

614,208

1,083,456

1.7

4.6

6.0

5.5

4.9

$94,006,321
108,838,145
25,531,432
19,386,888
21,250,837
9,498,645
29,865,996
20,659,831
15,858,618
12,876,238
10,103,143
18,642,141

6.0
2.7
8.4
4.4
3.0
1.4
5.2

100.0

AGRICULTURAL AND LIVE-STOCK P A P E R MATURING A F T E R 90 DAYS.

Boston
New York...
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St- Louis

$200
$4,34<(
$800
21,621

$3,472

2,667

4,876

10, 878

$262,07

$580.860

$119,433

$7,089

SI, 067
1,610

10,108

520l

$1,295

1,870

2,279

6,897

36,624

34,97

83,039

424,852

388,516

221,913

5,550

2,425

900

2,707

4,214
4, 486
55,326

41
.

12,504......
0.1
30,991

23,605

4,313

67,940

0.2

14, 722

350j

8,047

1,2S5,53 7J

4,5

28,651

41,813

41,158

131,117

208,036

173,976

113,537

77,639

35,524

93,572

14,257

32,842

1,052,152

3.6

66,532

24,385

71,990

65,935

130,908

158,367

159,532

153,681

283,544

782,108

3,544,270

2,110,221

7,551,473

25.9

27,434

800

26,992

41,714

37,742

37,492

28,917

81,657

9,012

43,194

29,990

43,493

408,437

1.4




Minneapolis
Kansas City
Dallas
San Francisco

117,245

Total
Per cent

591,882
2.0

96,827
174,189
47,705

56,72-*
.

25, 796

202,912

53S,469

89,560

59,991

107,617

407,192

207,584

244,041

329,076

629,674

4,540

21,990

21,814

471,254

532,279

1.6

1.8

996,804
3.4

505,121

90,900

173,034

556,680

197,350

311,573

327,289

1,201,66C

340,083

236,814

330,802

293,055

188,277

161,927

20,224

171,165

3,310,352

1,610, 709

11.4

5.5

1,401,135
4.8

2,370,937
8.2

5,955,355
20.4

27,148

1,076,822
445,905
751,949
103,351

1,177,100
511,671
843,9C3
244,687

2, 473, 780
8.5

3,139,952
10.8

1,011,008
1,847,892
745,403
240,221

5,531,811
5,604,527
5,126,573
1,253,049

6,276,500

29,130,949

21.6

19.9
19.3
17.6
.4.3

100.0

TOTx\L AMOUNT O F C O M M E R C I A L P A P E R D I S C O U N T E D .

w
January.

March.

April.
$9,949,422
2,439,223
2,385,421
6,971,412

$5,098,763

2,305,530

1,967,822
3,226,431

568,830
1,794,098

1,837,517

3,933,355

203,091

4,102,497

260,295
658,819
123,358

158,577
• 721,955

337,529
1,030,865
151,521

344,395
1,800,427
704,887

20,445,040
4,923,937
25,070, 795
3,202,925
3,215,009
5,949,072
3,792,396
4,236,848
2,273,089
450,600

18,320,286

22,408,601

20, 788,982

50,055,801

91,413,473

51,198,462

Total, 1917.
Total, 1916.
Total, 1915.
Percent, 1917....
Percent, 1916
Percent, 1915....

598,162
565,122
644,971
8,582,382
2,562,072
1,294,103
605,727
1,226,753

106,786

3,062,583
3,009,293
4,017,620
4,193,552
1,541,118

August.

June.

S3,932,988
1,925,351
1,682,222
2,542,343
5,784,232
1,153,026
2,038,196

Boston
New York
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...




February.

12,164,509

$11,302,429
6,545,273

July.

$46,216,725

U2,430, 484
262,366,105

September.
$26,010,286

6,007,118

$20,377,106
53,024,394
18,170,441
14,803,326
29,772,948
5,015,168
19,240,750
15,104,344
11,039,240
19,480,868
4,231,867
4,679,522

750,2C9,838

400,733,354

220,939,974

o
1-3

518,164,104

552,970,457
42,724,903
11,184,990
30,097,727
2,831,080
25,160,367
4,542,803
9,865,832
11,841,537
3,769,321
9, Q5S, 096

22,175,858
10,872,873
34,513,978
4,247,943
33,611,427
15,381,406
8,806,257
16,137,000
4,182,905

319,543,993
18,934,001
17,704,624
50,122,193
7,904,732
35,636,417
25,026,448
4,347,036
28,251, 741
5,215,021
9, 467,612

11,115,000

7,664,600

9,387,300

11,521,500

11,195,500

11,600,000

20,183,000

17,351,800

12,530,300

13,399,700

10,549,300

12,145,700

13,406,000

13,238,000

12,233,700

14,405,000

0.2

0.3

0.3

0.0

1.0

8.4

5.1

2.5

0.1

5.4

3.7

4.5

r r

5.4

5.6

9.7

S.3

7.8

8.3

6.5

7.5

8.3

8.2

7.6

W
w

9
in

0.9

6.7

H

14,308,800

10,712,800

p

8.9

o

CD

Commercial paper discounted for members and other Federal Reserve Banks during each month in 1917, distributed by maturities, and totals for 1917,
o
o
1916, and 1915—Continued.
TOTAL AMOUNT OF COMMERCIAL P A P E R DISCOUNTED—Continued.

October.

Boston
New York

November.

December.

Total, 1917.

Total, 1916.

Total, 1915.

Per cent,
1917.

Per cent,
1916.

785,9G9

$60 537,800

$106,078

•12,086,700

3.9

16.3

2,663 667,292

287,418

$350 919,310
6,536 459,903

$33,921,900

,382, 893,111

22,329,500

4,819,600

73.5

10.7

Philadelphia

16, 819,730

31 478,602

45,025

223 416,008

22,328,400

5,137,100

2.5

10.7

Cleveland

26, 296,120

47 582,704

63,631

211 176,109

6,792,400

4,526,000

2.3

3.3

Richmond

25, 101,509

56 279,290

119,531

Atlanta

16, 973,352

23, 049,3G9

24,666

Chicago

96, 229,904

162 899,350

137,014,

St. Louis

25, 871,747

Per cent,
1915.

1.3
3.0
3.2
2.8

W

o

220,685

34,377,200

44,891,400

4.5

16. 5

114,744

22,323,200

34,209,300

1.1

10.7

27.8
21.2

H

872,103

23,178,100

9,238, 700

2.8

11.2

5.7

O

117,790

8,842,700

6,317,600

3.1

4.3

3.9

85, 161,837
242, 694,062

6,473,500

5,206,500

0.9

3.1

6,817,700

10,875,500

2.7

3.3

3.2
6.8

18,512,500

26,756,900

0.6

8.9

10. G

1,973,400

7,287,700

1.1

1.0

4.5

401
95
521
186

7, 658,319

32 313.695
18, 879,203

54,982,

Minneapolis
Kansas City

44 425,928

69, 999,049

47,214,

Dallas

11, 721,642

12, 835.696

8,545,

San Francisco

15, 388,463

26, 964,721

29,878,

Total, 1917.

2,681,165,854

3,206,486,771

937,433,413

Total, 1916.

11,862,900

17,904,100

63,716,000

Total, 1915.

15,050,800

18,269,700

15,412,000

Percent, 1917....

29.9

35.7

9.9

Per cent, 1916....

5.7

8.6

30.7

Percent, 1915....

9.3

11.3

9.6




13,447,

57, 052,636
102, 981,207

H

tn

9,014,186,454
207,870,500
161,353,000
100.0
300.0

o

Paper rediscounted for the Boston Federal Reserve Bank during the month of December, 1917, distributed by maturities.
Maturities.

Rediscounted by Federal
Reserve Bank o—
f
New York

Maturities.

Rediscounted by Federal
Reserve Bank o—
f

TV

16 to 30 days. 31 to 60 days.
$2,255,372

...

61 to 90 days.

.

.

$9,461,539
5 000 138

$13,468.132

Kansas City
1

Dallas

5, 007, 121

£,003,294

.

$25, 185, 043
5 000 138

5,007,121

St. Louis .

Total.
16 to 30 days. 31 to 60 days. 61 to 90 days.
$5,000,036

5, 003, 294

Total

$2,255,372

$13,4C8,132

$5,000, 036

29,472,128

i 45,195, 632

W
W

m
o
w
H
O

Figures included with other discounts shown above.

Member banks' collateral notes discounted by Federal Reserve Banks during the calendar year 1917.
[(a) Secured by Liberty loan bonds or United States certificates of indebtedness; (b) Otherwise secured.]
January.

February.

March.

April.

(b)

(b)

(b)

(b)

$387,730
1,437,000
475,000
1,900,000
3,870,000
242,356
1,911,276
365,000
520,000
10,000
315,000

$1,423,500
287,000
1,605,000
1,600,000
2,075,000
266,000
1,130,729
1,670,000
100,000
5,000
165,000

$2,024,000
1,027,000
1,307,700
4,110,000
8,936,000
735,000
50,000
1,377,879
140,000

June.

May.

July.

H

August.

w

Federal Reserve Banks.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas

$448,699
270,000
230,000
6,667,000
769,000
520,000
375,000
345,000
75,000
162,630

S^in Francisco
Total, 1917
Total, 1916

(a)

(a)

(b)

(a)

$2,990,000

$12,673,210

76,785,175

5,011,500

40,053,045

880,000

14,349,000

16,515,320

2,110,000

10,192,990

550,000

2,170,000

5,081,000

7,025,000

4,339,000

50,000

19,289,550

$1,655,000
175,869,630
1,691,650
2,210,000
1,379,525
642,000
3,881,117
350,000
2,090,000
2,622,300
125,000
400,000

$33 150 985 i S 573 500
M

2,037,000

$413,700
336,696,500
680,650
1,957,000
66,500
35,000
6,075,000
60,000
2,243,000
4,231,429
1,557,000

$26,277,500

40,000

25,534,637

1,926,682

22,428,660

192,916,222

10,000

914,000

413,000

1,230,000
1,520,000

575,000

300,325

2,401,000

270,000

225,000

596,205

204,393,534
35,009,849
3,827,600
23,938,750
346,000
7,674,400
2,055,000
1,078,000
5,455,000
305,000

6 000
9,862,329




11,433,362

10,327,229

w

(b)

$40,000

170,000

5,184,000

19,883,579

i

>

I"1

45,666,080

354,015,779

310,360,633

(b)

(b)

632,500

1,006,000

250,000

18,265,000

3,129,000

7,140,805

10,820,000

1,155,000

ft
22

8,625,000

1, 714,151

1,384,640

1,345,804

11,734,585

3,420,950

13,506,500

1,187,500

474,500

1,050,500

1,115,340

1,261,000

25,000

202,536,193

30,477,772

121,630,514

2
W

o
>

Member banks' collateral notes discounted

by the Federal Eeserve Banls

during calendar year

1917—Continued,

o

[(a) Secured by Liberty loan bonds or United States certificates oi indebtedness: (b) Otherwise secured.]
October.

September.

.December.

November.

Total.

Federal Reserve
Banks.
(a)

(b)

(a)

$2,804,700
173,970,000
5,532,500
9,018,000
1,952,290
1,749,400
7,951,900
2,711,500
1,067,000
5,556,450
1,842,500
1,494,400

$18,193,650
129,357,497
10,082,190
6,085,000
41,738,500
3,261,000
16,078,000
11,125,000
771,148
19,767,633
1,788,000
305,000

$2,457,700
2,152,680,000
3,002,500
12,885,000
1,449,500
4,744,000
44,592,000
9,411,000
5,076,900
15,864,000
5, 750,250
4,562,000

215,650,640

25S,552,618
1,410,850

(a)

(b)

(b)

(a)

(b)

(b)

(a)

Total member banks'
collateral
notes.
discounted.
>
IT1

Boston
New York
Philadelphia
Cleveland
Richmond
.,
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, 1917
Tota^ 1916 .

$4,916,958
$3,586,840
185,687,000 2,398,184,883
9,209,425
8,714,811
13,574,250
9,331,500
15,280,366
19,745,000
5,289,550
7,683,000
78,537,698
31,889,462
12,971,600
7,875,000
12,630,000
23,113,500.
25,452,334
5,296,000
4, 910,654
7,059,500
2,850,000

2,262,474,850 307,725,601
2,076,302

2,586,063,730

$15,535,000 $10,233,286
213,905,000 102,149, 997
9, 096,501
7, 755,505
18,870,300
13,862,000
8,209,060
35,195,902
4,923,850
12,298,500
45,769,000
45,798,250
21, 727, 740
10,948,000
2,685,622
2,098,215
40,273,404
6,984,350
5,369,281
1,000,000
9,004,800
5,127,925
412,043,857
5,587,895

237,377,631

$1,134,315
$25,094,844
45,637,140 5,344,602,510
1,511,250
32,803,226
1,138,000
66,089,550
5,291, 713
30,313,923
3,282,500
18,399,800
59,940,560
190,348,715
3,450,000
48,386,840
27,752,162
588,522
64,193,979
24,730,287
16,270,250
1,084,280
19,904,825
835,000
148,623,567 5,884,160,624
29,892,400

$117,825,429 $142,920,273
900,876,391 6,245,478,901
140,551,841
107, 748,615
119,533,650
53,444,100
245,024,635
214, 710, 712
49,079,656
30,679,856
381,977,197
191,628,482
108,592,719
60,205,879
36,753,327
9,001,165
205,473,722
141,279,743
33,374,300
17,104,050
34,045,965
14,141,140
1,858,645,562
38,967,447

w
O

w
H

H
M

7,742,8O6,1S6
38,967,447
m

Trade acceptances discounted by Federal Reserve Banlcs during each month in 1917, and totals for 1917 and 1916.
Federal Reserve
Banks.
Boston
New York
Philadelphia.....
Cleveland
Richmond

January. February.

March.

April.

$69,926
10,452
24,199
823
323,779

$62,433

3410,173

§150,730

15,104
1,797
240,283

21,721

29,730

145,962

141,466




May.

June.

July.

August.

September.

October.

$526,388
1.17,000
25,758
28,564
305,146

$334,442
358,264
78,343
499,473
267,503

$322,992
13,000
36,874
66,956
284,741

$638,303
197,918
94,159
13,332
91,848

$141,384
161,845
16,289
70,508
35,926

$333,710
1,121,773
184,701
601,687
214,403

November.

December.

$436,894 $2,687,752
1,102,357 3,781,191
100,139
99,001
819,959 2,297,491
544,291 ,
565,101

Total, 1917.

Total,
1916.

$6,115,127
$429,200
6,863,800
166,600
726,078
74,800
4,400,590
175,200
3,160,449 1,509,200

w
o
>
w

Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco. -.
Total, 1917.
Total, 1916.

75,157
8,609
11,930
55,678

227,392

3S8,355

195,600

22,380

30,276
10,263

48,046

195,334 |
43,387
414,448

94,563
8,850

13,465
14,985

12,000

5,197

86,126
9,417
16,134

574,464
444,400

856,078
246,100

762,820
298,700

678,022
210,000

260,903

61,345
90,135
136,788
12,238
40,990
102
11,446

356,345
49,204
305,610
3,016
8,271

1,767,702 2,521,374 1,077,607
298,300
275,700
199,000

Commodity paper discounted by Federal Reserve Banks
Federal "Reserve January. February.
Banks.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

March.

April.

May.

June.

during
July.

124,285
34,912
66,809
42,549
344,017

442,795

299,981
59,819
420,776

19,931

46,343

700,669

1,608,063
245,400

$551,076
249,461

$635,740
227,190

$611,609
243,833

$468,420
249,034

$209,649
458,873

15,000
131,667
13,569

4,775
12,048

1,363

814,106
1,794,700

879,753
1,719,000

856,805
1,370,700

4,100

Total, 1917.. 1,564,653
Total, 1916.. 1,863,600




1

21,400
65,000

August.

159,289
72,505

94,042
11,829

19,000
21,400

4,354,747
414,900

449,894
1,525,200

6,959,770
853,300

October.

November.

$25,000
$36,678
463,463

186,650
1,146,633

500,141
1,636,300

15,424,651
1,103,000

December.!

4,562,494
429,845
3,114,503
363,, 673
2,6*6,322
177,953
5,210,298

1,591,000
105'. 200
626,200
41,700
190,900
248,900
53,400

37,771,132
5,212,300

o
w

2,577,256
1,047,000

Special rate merged with regular discount rate on Dec. 3,1917, and separate classification discontinued.

Total, 1917.

427,278
121,670
196,667
289,896
822,296

23,921
568,509

1,659,491
2,921,100

%

d

Total,
1916.

H
O

$25 000
105 200
131 360
3,686,085 $7,025,800
5,438,819 7,500,400

310,689
25,400

218,619

104,400
6,008

1,163,800
226,361
982,609
97,243
627,867
7,862
2,888,373

$29,000
131 360
134,125
1,354,252

82,589

320,949
507,500

1,350,141
12,788
651,754
35,679
378,141
37,528
1,490,099

totals for 1917 and 1916

53,470

152,700

757,102
712,000

September.

$25,000
26,200

2,180
864,121
899,400

1,125.834
593,500

417,228

11 months in 1917, and

$25,000
$598,807
961,746

102,954
13,653
93,137
1,000

1,534,000
19.800
360,000
225,200
148,000

11,244,271
$816,700

16,813,200

w
o

104

ANNUAL REPOET OF THE FEDEEAL RESERVE BOARD.

Bills, including member banks1 collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount.

Districts.

District No. 1—Boston:
Connecticut—
- Jan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...

Member
banks
at end
ofeach
quarter.

Banks
accommodated
during
each
quarter
and the
year
1917.

3
6

54
55

8
22

63

14

157
154
160
163

21
46
60
87

$50,382 $111,790 S2tl,932 $389,773
873,011
882,31?
345,981
289,084
2,653,874
6S8,397
578,463
377,300
3,547,191 2,878,597 1,734,931 5,420,345 $121,632

4,298,024
13,702,696
21,184,995

121,632;

$793,877
2,390,388

225,000
84,131

89,488

108,739

88,890

325

371,573

226,822

212, 727

246,164

614,048

1,487

1,301,248

307,215

354,903

702,938

1,812

1,902,811

282,077
783,073

9,110,738
62, 759,569
86,399,497
145,491,010
303,760,874

6,356,069
50, 733,451
68,217,769
33,964,967

5,000

230,000

422,047
1,291,888 1,040,994
6,222,184 2,262,925 3,541,009
4, 707,923 5,176,2,50 8,035,478
18,394,646 25,946,866 65,401,458

3
12
13
16

558,259

720,284

13,430

151,251
830,078
1,655,209
3,301,191

2,580,889 1,306', 301 1,097,357

56
56
55
55

939,842

13, 430

5,937,8:9

85,000
450,801
131,688
1,100,600
109,883
944,488 1,064,730

1

48,230

18,021

227,877

19,712

262,991

181,825

2
4
9

48
48




3
11

725,000
510,000
400> 000
1,606,158 1,954,486 2,398,785 5,984,795

15,000
725,000
910,000
11,944,224

2,841,158 2,354,486 2,413,785 5,984,795

17
17
17
18

Total
Vermont—•
Jan.-Mar....
Apr.-Juno..

From
Over discounted.
61 to 90 90 days.
days.

159,272,256 30,616,441 34,427,035 78,399,992 1,045,150

3

64

Total
Rhode Island—
Jan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...

T o t a l bills

From
31 to 60
days.

535,953

64

Total
New H a m p shire—
Jan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...

15 d a y s .

From
16 to 30
days.

66

Total
Massachusetts—
Jan.-Mar...
Apr.-June ..
July-Sept...
Oct.-Dec...

Within

7,124,458 3,914,831 2,643,247 7,380,827

55
53

Total
MaineJan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...

Maturities.

13,594,224

15,000

55,349
176.128

12,313
101,166

56,660

34,965

203,082

52,985

200

159,2S7
533,541

ANNUAL KEPOBT OF THE FEDEBAL EESEBVE BOARD.

105

Bills, including member banks' collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Districts.

Member
banks
at end
of each
quarter.

District No. 1—Bost on—C ontinue d.
Vermont—Con.
July-Sept...
Oet.-Dec...

Banks
accommodated
during
each
quarter
and the
year
1917.

Maturities.

Within
15 days.

From
16 to 30
days.

Total bills
From
From
discounted.
31 to 60 61 to 90 Over
days.
days. 90 days.

11

48

15

Total

$717,311 $158,710
882,501 1,108,831

$162,645
314,043

$144,808
365,169

113,731

$1,183,474
2,662,275

1,811,289 1,379,020

48

736,410

597,927

13,931

4,538,577

174,166,003 39,878,294 41,672,737 94,006,321 1,195,955

350,919,310

Grand total
for Boston

402

218

District No. 2—New
York:
New YorkJan.-Mar. . .
Apr.-June ..
July-Sept...
Oct.-Dec

478
477
484
519

37,085
370,702
20
4,476,128
390,936
804,386 1,666,814 1,517,885
86 555,447,122
102 599,653,793 3,683,063 6,123,461 14,033,353
222 5,162,573,498 11,377,437 36,097,004 75,908,463

Total
New Jersey—
Jan.-Mar
Apr.-June ..
July-Sept...
Oct.-Dec

6,322,150,541 15,901,971 44,257, SSI 91,850,637

132
133
132
136

7
20
37
51

Total

61,366
54,101
33,390
551,010
334,378
619,741
504,125
683,687 1,417,700
598,659 2,466,159 3,553,489

20, 787,542 1,713,160 3;538,325 5,624,320

Connecticut—
Jan.-Mar
Apr.-June ..
July-Sept...
Oct.-Dec....

11,437 6,474,172,557

1,067

181,772
2,305,147
10,747,197
18,430,293

1,067

31,684.414

75,200
150,000
325,085
1,258,400

16,500
27,300
6,125
5,500
29, 700
34,400
140,824
90,025
130,602
152, 733 1,265,023 1,730,522

125,125
219,600
683,535
4,406,678

1,808,685

15
15
15
15

315,557 1,412,048 1,901,649

5,437,939

322 6,344,746,768 17,930,688 49,208,354 99,378,606

12,504 6,511,274,920

3
2
10

Total
Grand total
for New
York....

31, 848
800,018
8,141,685
11,813,991

5,279,199
559,438,207
7,089 623,500, 759
5,285,956,402

4,348

670

District No. 3—
Philadelphia:
Delaware—
Jan.-Mar
Apr.-June ..
July-Sept...
Oct-Dec..-Total



24
22
!

22
23

1

50,000

50,000

50; 000

50,000

106

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Bills, including member banks' collateral notes, but excluding rediscounts betiveen Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917 ^
distributed by States and maturities as of date of discount—Continued.

Districts.

District No. 3—Philadelphia—Contd.
New JerseyJan.-Mar
Apr .-June . .
July-Sept...
Oct.-Dec...

Member
banks
at end
of each
quarter.

72
72

Banks
accommodated
during
each
quarter
and the
year
1917.

5
20
17
24

53C
534
533
542

Grand total for
Philadelphia.

638

District No. 4
—
Cleveland:
Kentucky—
Jan.-Mar.. .
Apr .-June...
July-Sept...
Oct.-Dec...

68
68
68
70

24
74
86
152

201

$22,927
920,274
1,548,940
3,712,282

From
16 t o 30
days.

From
31 t o 60
days.

From
61 t o 90
days.

$298,495
338,958
224,267
470,633

$14,973
314,641
183,830
422,468

760,207 1,332,353

$144,686
197,758
117,505
300,258

Total bills
discounted.
Over
90 days.

900

$511,081
1,779,131
2,074,542
4,906,541

965,912

8,400

9,271,295

254,305
86,170
4,042.669
255,226
569,964
58,607,844 2,897, 769 1,693,860
49,084,838 1,218,732 1,690,296 5,175,808
57,787,563 7,124,639 4,718,961 18,733,578

7,286
6, 796
6,084
2,425

4,745,556
63,776,233
57,205,758
88,367,166

22,591

214,094,713

175,777,337 12,286,573 9, 789,675 25,531,432

30,991

223,416,008

1
4
7

16,100
49,613
991,472

475
48,600
2,000
292,799

1,321
78,269
3,756
232,454

343,874

315,800

$7,500

65,738
50,000
700,636

1,057,185

2

Tota*

816,374

1,796
208,707
105,369
2,217,361
2,533,233
i

373
374
374

12
54
39 j
42

299
299
299
301

Total




6,097,854
853,787
173,546
59,406
16,177,210 1,120,680 1,630, 792
896,137
26,357,135 4,637,451 2,650,133 2,508,662
60,479,710 13,254,742 11,440,547 13,200,975

13,545
12,387
10,769
10,625

7,198,133
19,837,206
36,164,150
98,386,599

109 111,909 19,866,660 15,895,018 16,665,180

380

To+al
P enn syl vani a—
Jan.-Mar
Apr.-June...
JuJy-Sept...
Oct.-Dec...

15 days.

6,204,423

Total

OhioJan.-Mar
Apr.-June...
July-Sept...
Oct.-Dec...

Within

169,522,914111 - 526.366! 8.457.32224,565,520

73

Total .
P ennsy 1 vania—
Jan.-Mar. . .
Apr.-June . .
July-Sept...
Oct.-Dec....

Maturities.

47,326

161,586,093

206,340
7,013,557
8,465
13,819
53,849
27,011,687 5,510,082 2,053,136 1,630,070

614

3,034,426
7,090,304
36,204,975

36,052,126 5, 740,909 2,650,797 1,890,259

614

46,334,705

1
10 j
8
29

2,026,882

222,362

5,000
578,842

5,000

ANNUAL KEFOKT OF THE FEDERAL EESERVE BOARD.

107

1

Bills, including member hanks collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of
discount—Continued.

Districts.

Member
banks
at end
of each
quarter.

District No. 4—
Cleveland—Con.
West Virginia—
Jan.-Mar . . .

Apr.-June...
July-Sept...
Oct.-Dec...

Banks
accommodated
during
each
quarter
and the
year
1917.

13

1

15
15
15
15

160

Total bills
discounted
Over
90 days.

$21,000
701,075

15,075

20,000

722,075

146,746,220 26,101,443 18,873,615 19,386,888

67,940

211,176,106

$150,000
150,000

$11,000
1,000
12, OOol

3
6

200,000
105,000
721,886
376,709

13,912
70,204
100,171
204,056

22,000

151,772
226,750
22,000

121,347

133,020

448,951
401,954
866,057
835,132

1,403,595

4

Total.

388,343

226,614

533.542

2,552,094

83,267

81
80
80
81

48
47
. 37

Total
80
82
81
84

Total



10,155

1,631,637
14,838,043
20,067,622
26,467,696

10,555

63,004,998

386,893
783,539
507,846
418,962 1,272,338 1,533, 798
238,020 1,078,462 1,574,840
566,605
925,904 1,321,449

1,775
220,231
99,196
9,864

2,749,093
4,798,490
6,297,749
S, 789,126

11,634,736 1,670,480 3,784,550 5,213,626

9
16
17
31

132,602
181,051
1,285,000
32,984
561,914
922,054
13,108,653
245,022
14,214,268 1,306,141 2,192,807 2,354,406
21,160,115 1,269,064 1,734,053 2,294,309
49,768,036 2,853,211 5,029,965 5,343,231

96
96
95
97

Total..

34365°—IS-

From
61 to 90
days.

$20,000

$525,000
525,000

District No. 5—Richmond:
District of Columbia—
Jan.-Mar
Apr.-June...
July-Sept...
Oct.-Dec...

South Carolina—
Jan.-Mar...
Apr.-June..
July-Sept...
Oct.-Dec...

From
31 to 60
days.

$10,000
5,075

1

13

764

North CarolinaJan.-Mar
Apr.-June...
July-Sept...
Oct.-Dec....

From
1G to 30
days.

13

Grand total for
Cleveland

Apr.-June...
July-Sept...
Oct.-Dec

Within
15 days.

13

Total

Maryland—
Jan.-Mar

Maturities.

331,066

22,634,458

1,612,488
1,348,724

89,882
586,082
152,913
2,600

3,492,497
4,807,236
7,070,185
7,693,221

S,859,316 2,079,754 5,095,863 5,196, 729

831,477

23,063,139

1,069,040
1,353,161
3,247,231
5,965,304

40

324,287

53

1,288,085

59

3,418,382

29

4,828,562

688,093
562,968
502,315
328,378

1,335,968
1,190,851
1,384,087
1,184,957

1,056,267
1,179,250

400

108

REPORT OF T H E FEDERAL RESERVE BOARD.

Bills, including member hanks'1 collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of
discount—Continued.

Districts.

District No. 5—Richmond—Continued.
VirginiaJan.-Mar
Apr .-June ..
July-Sept...
Oct.-Dec...

Member
banks
at end
of each
quarter.

Banks
accommodated
during
each
quarter
and the
year
1917.

144

16

145

46

148

47

151

54

102

District No. G—Atlanta:
Alabama—
Jan.-Mar
Apr .-June . .
July-Sept...
Oct.-Dec...

Total bills
From
Over discounted.
61 to 90 90 days.
days.

$1, 565 $10,234,087
89,694
42,483,103
30; 680 79,840,357
500 155,593,503
122,439

28S, 151,060

102

9

530

246

93
94

20
26
32

150,000
935,454

5,000
38,046
29,413

3,900
5,200
42,007
40,760

37,096
528,060

3 900
10 200
207 149
1, 533, 087

1,085,454

102

72,459

91,867

565,156

1,814,936

350,331,151 9,669,680 18,673,480 21,250,837 1,295,537

401,220,685

37

452,147
461,525
402,708
920,299

22,605
234,965
58,256
30,989

1,034,605
1,516,692
1,642,709
4,911,539

3,652,683 1,107,422 1,755,946 2,242,679

94
95

346,815

9,105,545

329,669
161,502
602,067
2,559,445

37,977
189,193
207,787
672,465

192,207
469,507
371,891
722,341

55

9
11

54

19

57

30

102

31

101

47

100

54

107

56

Total




175,639
470,020
1,361,755
2,318,194

46,420
63,700
251,228
358,039

73,874
171,315
452,699
940,307

63,420
93,733
144,258
193,104

5,250
38,444
4,796
48, 772

304,603
837,212
2,214,736
3,858,416

4,325,608

55

Total......
Georgia—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec...

From
31 to 60
days.

$9,981,000 $66,395 $94,432 $90,695
38,923,591 1,041,024 1,147,352 1,281,447
76,382,679 665,992 1,631,801 1,129,205
151,292, 744 832,022 1,571,036 1,897,206

1

Total
Florida—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec...

From
16 to 30
days.

1

102

Total
Grand total
for Richmond. . .

Within
15 days

276,580,014 2,605,433 4,444,621 4,398,553

Total
West VirginiaJan -Mar
Apr -June
July-Sept .
Oct.-Dec....

Maturities.

719,387 1,638,195

494,515

97,262

7,274,967

528,125 269,243 635,532 942,400
1,861,382 520,875 1,261,132 579,574
3,985,049 373,230 1,808,203 801,411
16,585,914 1,843,439 2,956,993 2,084, 795

35,749
227,404
36,216
432

2,411,049
4,450,367
7,004,109
23,471,573

22,9G0,470 3,008,787 6,661,860 4,408,180

299,801

37,337,093

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

109

7

Bills, including member banks collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.
Banks
accommodated
during
each
quarter
and the
year
1917.

Member
banks
at end
of each
quarter.

Districts.

District No. 6—Atlanta—Continued.
Louisiana—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec...

Maturities.

Within
15 days.

From
16 to 30
days.

From
31 to 60
days.

From
61 to 90
days.

Total bills
Over discounted.
90 days.

Mississippi—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec...

18
18
17
18
•

Total
Tennessee—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec... .

1
3
7
6

1

92
92
92
90

14
22
33
40

Total

$10,229
39,647
71,732

$938,485
61,345
1,315,161
24,721,570

268,967

815,891

121,608

27,038,501

50,000
101,318
389,000
1,307,756

13,419
31,770
240,437

36,255
139,137
262,598

42,333
17,898

4,000

285,626

437,990

60,231

4,000

2,635,921

100,100
250,151
976,653
4,247,915

91,852
37,873
163,223 350,970
819,195 1,634,960
703,041
337,406

139,860
182,176
902,380
548,231

37,789
32,699
51,700
60,478

407,474
985,219
4,384,833
5,897,071

5,574,819 1,357,697 2,786,823 1,772,647

Total

1,000,500
23, 745,852

$15,579 $308,760
6,628
8,570
39,499
155,930
754,185
47,133

1,848,074

4
4
12
7

$40,567
6,500
47,500
174,400

25,359,702

22
22
24
25

182,666

11,674,652

$613,350

520,393

50,000
150,992
606,240
1,828, C89

Grand total
for Atlanta

392

228

63,721,356 6,745,886 14,098,705 9,498,645 1,052,152

95,114,744

District No. 7—Chicago:
Illinois—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec...

316
315
323
334

15
31
35
150

91,318 23,804
270,517 725,837 335,395
12,784,664 1,041,757 811,603 782,912 66,855
36,039,895 2,811,436 2,199,997 2,383,516 68,631
206,803,699 4,399,858 4,610,755 9,799,134 1,541,180

1,446,871
15,487, 791
43,503,475
227,154,620

255,898,775 8,978,888 7,957,750 13,056,880 1,700,470

287,592,703

1,018
19,061
49,142
31,233 48,413
2,391,851 263,304 217,270 239,484 118,944
1,825,920 517,901 547,990 275", 502 49,845
11,284,440 2,728,650 5,279,394 1,881,204 297,203

148,807
3,230,853
3,217,158
21,470,951

15,503,229 3,528,916 6,093,798 2,427,423

23,067,829

Total

.

Indiana—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec...

195
195
197
200

Total




12
27
33
77

514,465

110

ANNUAL REPORT OF IHE FEDERAL RESERVE BOARD.

Bills, including member banks1 collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Districts.

Member
banks
at end
of each
quarter.

Banks
accommodated
during
each
quarter
and the

Maturities.

Within
15 days.

From
16 to 30
days.

From
31 to 60
days.

From
Total bills
61 to 90 90Over
days. discounted.
days.

1917.
District No. 7—Chicago—Continued.
Iowa—
Jan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec...

23

356

62

358

189

Total
MichiganJan.-Mar
Apr.-June . .
July-Sept...
Oct.-Dec

76
76
79
99

10
23
29
44

Total.
Wisconsin—
Jan Mar
Apr.-June..
July-Sept...
Oct.-Dec

22

109

44

14

1,100

541

67
66

7

67

20

67

13

District No. 8—St.
Louis:
ArkansasJan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec

3,546,160 117,934
62,584
5,000
15,000
5,025,646 432,349
732,366 285,452 62,297
15,289,175 3,849,547 1,348,399 1,170,220 66,398
51,689,363 1,103,494 2,165,665 2,417,608 102,155

3, 746,678
6,533,110
21,723,739
57,478,315
89,486,872

245,850

45 735
185,621
404,199
987,857

6 443
32,981
44,469
67,147

59,278
4,853,411
15, C01,612
42,1S5,314

151,040

62,699,615

412,362,205 26,327,005 45,664,391 29,865,990 7, 551,473

521, 771,070

5 000
2 100
1,190,050 1,050,700 2,394,059
5,704,830 2,382,897 7,065,217
27,489,917 2,694,683 10,945,710

157

9
7

157
156

13

158

17

Total




909,377
33,762
812,307
5,612,229

3,044
10,307
144,996
423,138

15,392
27,007
195,851
981,875

8,107
77,889
186,710
456,610

17,541
29,362
79,206
30,296

953,461
178,327
1,419,070
7,504,148

7,367,675

5

Total
Illinois—
Jan.-Mar
Apr.-June...
July-Sept...
Oct.-Dec

53,923,991

34,384,797 6,133,280 20,407,086 1,623,412

2

105
105
108

Total
Grand total for
Chicago.

$236,195
1,491,702
4,341,577
47,854,517

75,550,344 5,503,324 4,309,014 3,878,340

20

354

$21,480 $46,706 $62,806 $35,956 $69,247
949,596
155,765 205,921 108,287
74,133
782,920 862,083 367,414
2,106,323 222,837
27,947,661 1,757,289 5,845,098 7,875,615 4,428,854
31,025,060 2,182,597 6,895,745 8,879,941 4,939,648

354

581,485, 1,220,125

729,316

156,405

10,055,006

2,500
98,179
64,191
1,528,250

2,250
9,825
30,214
288,434

27,208
89,694
118, 702
585,006

15,768
61,225
121,398
177,710

5,000
9,060
3,854
31,675

52,726
267,983
338,359
2,611,075

1,693,120

330, 723

820,610

376,101

49,589

3, 270,143

ANNUAL REPORT OP THE FEDERAL RESERVE BOARD.

Ill

Bills, including member banks' collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Districts.

District No. 8—St.
Louis—Contd.
IndianaJan.-Mar
Apr.-June...
July-Sept...
Oct.-Dec...

Member
banks
at end
of each
quarter.

Cl
61
C2
63

Banks
accommodated
during
each
quarter
and the
year
1917.

$125,000
1,262,500
4,032,000

$6,849
136,826
147,695

$5,403
339,904
392,012

$.12,500
116,798
294, 540

4,866,247

291,370

737,319

423.838

6,872,027

222,-060
1,691,070
4,282,941

433,579

35,000
737,668
561,087 1,486,536

75,000
212,778
933,094

332,060
3,075,095
7,263,658

994,666

2,259,20 41.220.872

10,670,813

40,000
900
18,300
59,600

1,000

118,800

4
8
17

$149,752
1,856,028

W
81
84
87

11
22
14
23

20
20
20
20

3
5
12
6

Total..

19,850

18,100
60,490
71,374
125,062

6,000

67,100
111,276
122,279
307,654

32,100

153,222

275,026

29,161

COS, 309

35,366
1,125,000
11,119
96,848
6,560,459 1,722,376 1,865,065 2,501,195
37,025,896 3,045,422 3,632,939 3,210,091
58,449,796 6,324,198 4,855,571 4,448,358

32,685
54,540
28,451
48,706

1,301,018
12,703,635
46,942,799
74,126,629

164,382

135,074,081

385,099
150,967
101,706
241,230
148,830
188,461
100, 776
516,807
330,312
656,686
248,763
6,700,236 1,072,649 1,687,342 2,028,509

2,900
6,000

7,843,372 1,702,758 2,634,195 2,378,048

18

3
4
6
4

8,000
24,650
23,430
97,142

103,161,151 11,103,115 10,388,941 10,256,492

IS
17
18

Total..
Tennessee—
Jan.-Mar
Apr.-June...
July-Sept...
Oct.-Dec...

T o t a l bills
discounted.

6,196,071

65
66
66

Total..
MissouriJan .-Mar
Apr .-June..
July-Sept...
Oct.-Dec...

From
From
From
Over
16 to 30 31 to 60 61 to 90 90 days.
days.
days.
days.

65

Total..
Mississippi—
Jan.-Mar
Apr .-June..
July-Sept...
Oct.-Dec...

Within
15 days.

5,419,500

3
6
12

Total
KentuckyJan. Mar
Apr .-June..
July-Sept...
Oct.-Dec...

Maturities.

8,900

14,567,273

131,799,689 15,036,217 18,213,616 15,659,693

408,437

181,117,652

4,150
7,100

$21,086
2,075

637,772
682,197
1,758,568
11,488,736

Grand to-.
talforSt..
Louis

479




149

112

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Bills, including member banks' collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Member
banks
at end
of each
quarter.

Districts.

D i s t r i c t No. 9—
Minneapolis:
Michigan—
Jan.-Mar
Apr .-June..
July-Sept...
Oct.-Dec...

Banks
accommodated
during
each
quarter
and the
year
i917.

2
4
3
8

From
16 to 30
days.

Total bills
From
discounted.
61 to 90 90Over
days.
days.

From
31 to 60
days.

$2,081
24,500
39,639
85,301

$2,388
31,732
15,000
30,301

$17,505
6,468
29,639
114,098

$3,289
10,156
5,082
04,643

825,203
72,856
89,3G0
294,343

79,421

167,710

83,170

4 V 822

1,014,028 569,929 1,064,107
160,625
5,012,122 2,008,665 6,032,198 2, 239,835
8,822,718 1,850,283 5,590,388 3, 730,887
22,895,550 1,274,862 3,309,507 2, 534,989

18
37
71
92

North Dakota—
Jan.-Mar
Apr .-June..
July-Sept...
Oct.-Dec...

$36,050
46G, 198
999, 410
572,642

2, 894, 739
15,759,013
20,993,686
30, 587, 550

37,744,418 5,703,739 15,996,200 8,666,336 2,121,300

289
291
293
295

Total

70,234,993

11
32
51
40

South Dakota—
Jan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec... .

106,207
144,651

14,525
26,971
59,460
57,501

18,061
10,343
342,492
53,772

44,490
52,750
359,716
229,415

24,302
859,965
261,188
359,804

136,37S
950,029
1,129,033
845,143

285,858

156
156
157
162

Total

158,457

424,668

686,371'1,505,259

3,060,613

1,998

20,118
16,553
93,514
414,991

70,625
272,340
121,023
159,760

119,291
290,403
315,039
1, 633,192

545.176 623, 748

2,357,925

35,000

8
18
26
30

MontanaJan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...
.

86
94
108
115
115




3
17
33
45

37,475
499,966

10,516
79,527

26,550
1,510
52,511
478,948

537,441

125
126
127
128

Total

Total..

Within
15 days.

151,521

32
32
33
34

Total . ..
Minnesota—
Jan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec

Maturities.

92,041

559,519

230,000
355,000
46,861

5,000
7,943
127,866

14,295
42,716
71,373
233,040

8,787 18,788
7,550 219,700
245,073 369,347
168,837 643,011

41,870
504,9C6
1,018, 73G
1,219,615

631,861

150,809

361,424

430,247 1,250,846

2,815,187

i

ANNUAL EEPOBT OP THE FEKEKAL RESEBVE BOAEB.

113

Bills, including member banks' collateral notes, but excluding rediscounts betvjeen Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917y
distributed by States and maturities as of date of
discount—Continued.

Districts.

District No. 9
—
MinneapolisContinued.
Wisconsin—
Jan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...

Member
banks
at end
of each
quarter.

Maturities.

Banks
acommo
dated
during
each
quarter
and the
year
1917.

Within
15 days.

District No. 10—
Kansas City:
ColoradoJan.-Mar...
Apr .-June..
July-Sept..
Oct.-Dec...

10

38

10

773

284

$1,401
56,382
219,927
41,509

$88,276
259,062
92,859

$22,153
5,505

$6,401
1S3,453
616,649
397,673

133,814

319,219

440,1^7

27,658

1,204,170

39,634,387 6,308,281 17,828,740 10,851,497 5,531,811

80,154,71(5

1,621

122

1

470,000

5,785

122

1

2,908,440

421,998

1,768
1,439
25,903
4,557
43,877 147,986
48,227
590,457 1,108,672 1,165,645

3,410,012

427,783

642,582 1,158,545 1,341,302

6,980,224

60,223
484,691
1,057,878
4,947,561

139,102
152,138
483,448
211,884

28,742
81,948
361,850
235,644

6,977
94,79
97,02
428,175

58,280
269,472
81,878
255,601

293,324
1,083,046
2,082,075
6,078,805

6,550,353

986,572

708,184

626,970

665,231

9,537,310

28,225
8,565
575
38,936

43,073
10,565,675
44,066,397
80,728,331

76,301

135,403,476

2,95
15,00
425,00C
272,62
6,708,30C
44,850,16. 1,542,21

8,258
10,264
30,60
7,51
7,082
18,851
131,32
336,539
243,094
2,396,145 1,993,23 1,121,021

52,080
473,448
7,691,880
51,902,781

51,983,465 1,832,79

2,668,354 2,162,67 1,472,90C

60,120,189

22226
23
23o

2
3
3

2,277

3
S
14
V,

1,282

4,552

356,232

339,407

19
19
19
19

Total



41
)
6

606
9,809,175
43,685,575
79,386,283

130,00

183,235

381,695

505,390

8,40
52,29
67,01
416,02

132,881,639

5
5
5
5

Total
NebraskaJan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...

Over discounted.
90 days.

$30,675
89,002
14,137

31,572

12

Total . .
MissouriJan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec....

Total bills

From
61 to 90
days.

$5,000
8,120
26,505
243,663

122

Total
Kansas—
Jan.-Mar...
Apr.-June.
July-Sept..
Oct.-Dec...

From
31 to G
O
days.

283,288

2

37
37
37

Total
Grand total for
Minneapolis...

From
10 to 30
days.

869,20

1,032,584

543,74

4,823
64,309
715,875
6,195,212

114

ANNUAL EEPOKT OF THE FEDERAL RESERVE BOARD.

Bills, including member banks' collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Districts.

District No. 10—
Kansas CityContinued.
New Mexico—
Jan .-Mar
Apr.-June..
July-Sept...
Oct.-Dec....

Maturities.

Banks
accommodated
during
each
quarter
and the
year
1917.

Member
banks
at end
of each
quarter.

9
9
9

From
16 to 30
days.

Within
15 days.

1
4
4
2

From
31 to 60
days.

From
61 to 90
days.

Total bills
discounted.
Over
90 days.

$6,252
$9,262
17, 711
9,512

78,681
31,067
2,028

$13,877
79,865
70,685
49,050

$20,129
187,767
119,463
60,590

19,959

36,485

118,028

217,977

387,949

20,199
56,431
51,367
168,814
684,558
668,103
434,196 1,401,599 1,148,191
814,254 1,483,006 1,259,215

135,970
549,327
359,521
653,167

348,967
4,012,035
9,138,959
11,451,181

15,063,224 1,437,463 3,625,594 3,126,876 1,697,985

9

$19,959

24,951,142

1

1

Total . . .
OklahomaJan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec-...

,303

15

$85,000

305

56
89
45

1,941,233

308
311

Total
Wyoming—
Jan .-Mar
Apr .-June -.
July-Sept...
Oct.-Dec

36
36
36
36

1
3
4

5,795,452
7,241,539

Grand total for
Kansas
City...

6
6

11,500
10,000

16,000
5,850
114,255

20,500
23,410
93,421

36,500
54,960
219,018

3,542

21,500

136,105

137.331

310,478

209,900,693 5,577,321 8,735,283 7,872,944 5,604,527

958

District No. 11—
Dallas:
Arizona—
Jan. -Mar...
Apr .-Jane..
July-Sept..
Oct.-Dec...

2,200
1,342

12,000

Total. .

12,000

237,690, 768

24,886

13,373

18,160

56,419

998

8,745

14,855

82,539

107,137

998

33,631

28,228

100,69S

163,556

3,02.:

l,00C

32,92-

10,53S

17,07
3,28

225, (XX

85c
6,75C
94,49C

225, ( X
M)

102,09*I

35,94<

1
1

Total
Louisiana1*>

Apr .-June...
July-Sept...
Oct.-Dec... .
Total

i




15I
15I

1
1

15J

5

21,958
53,488
319,493

11,531)

20,35

394,939

ANNUAL EEPOET OF THE FEDERAL EESEEVE BOARD.

115

Bills, including member banks' collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Districts.

District No. 11—
Dallas—Contd.
New MexicoJan .-Mar
Apr .-June. .
July-Sept...
Oct.-Dec...

Member
banks
at end
of each
quarter.

28
30
31
32

Maturities.

Banks
accommodated
during
each
quarter
and the
year
1917.

Within
15 days.

Over
09 days.

$92,485

30,990

322,653

$27,517 $137,573
134,779 214,295

160,000

9,590

500,254

113,781

318,214

180,000

53,452

288,094

258,685

442,673

137,842 1,203,486

Total bills
discounted.

$301,385
805,390
1,101,839

492,829

1,273,060

534, 762 1,162,911

3,481,674

30,000
45,000
295,000

551
551

88

546

632

District No. 12—
San Francisco:
AlaskaJan .-Mar .
Apr.-June
July-Sept...
Oet.-Dec

9,033
78,246

3,230
154,816
22,047

4,603
246,989
195,862
295,000

30,015

75,067

87,279

180,093

742,454

433,232
71,142
454,250 485,011
426,349 1,242,971
940,065 1,306,350
407,07 32,006,783 2,373,599 1,077,258
449,168 1,109,337
673,391 793,892

2,105,651

26,107,641
47,269,977

34,057,779 1,624,685 6,140,456 5,103,107 5,126,573

50
105
151

541

1,373
32,140
41,554

33,020,106 1,353,732 4,792,323 4,441,305 3,662,511

1
8
8
4

21,000
9,015

370,000

32
32
31
30

52,052,600

662,016
2,862,346
6,413,891
23,081,853

Total.
Grand
total for
Dallas...

From
61 to 90
days.

$43,810

Total
TexasJan .-Mar
Apr .-June...
July-Sept...
Oct.-Dec...

From
31 to 60
days.

$102,673

5
11
9
11

Total
Oklahoma—
Jan.-Mar
Apr .-June...
July-Sept...
Oct. Dec...

From
16 to 30
days.

258

1
1
1
1

Total
Arizona—
Jan.-Mar
Apr.-June..
July-Sept...
Oct.-Dec...
Total.. .




6

I

j

I

6,778,081
12,278,604

116

AKKUAL REPORT OF THE FEDERAL RESERVE BOARD.

Bills, including member banks' collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Districts.

District No. 12—San
Francisco—Contd.
California—
Jan.-Mar
Apr .-June...
July-Sept...
Oct.-Dec...

Member
banks
at end
of each
quarter.

Banks
accommodated
during
each
quarter
and the
year
1917.

13
33
43
48

Total

57
63
65

3
4
14
14

10
10
10
10

1

From
31 to 60
days.

From
61 to 90
days.

Total bills
discounted.
Over
90 days.

$22,129 $104,181 $118,607
$5,445
468,641 2,552,382 2,756,349 2,857,077
5,421,162 2,567,746 3,626,747 2,159,810
28,558,195 5,158,921 10,431,912 7,818,369

$43,895
93,054
141,246
102,839

$294,257
8, 727,503
13,916,711
52,070,236

381,034

75,008,707

26, 700
35,484
119,262
206,891

51,219
66,430
562,500
909,417

388,337

1,589,566

12,646
157,000
293,000

3,578
1,025
8,817
37,422

149,945

20,941
7,650
183,739
222,159

50,842

253,252

434,489

30,000

20,000

1

9,625
93,682

50,000

20,000

50,000

25,000

95,000

40,000

50,000

25,000

145,000

4,660
25,000
2,890
230,589
106,834
237,840
274,576
190,805
170,000
42,090
2,027
4,379,675 1,325,764 2,232, 208 1,252,856

3,640
36,190
11,258
861,097
26,613
431,535
31,2 21 9, 221,724

4,681,509 1,565,631 2,551,764 1,678,910

Total
Oregon—
Jan.-Mar
Apr .-June...
July-Sept...
Oct.-Dec...

From
16 to 30
days.

462,646

61

Total
Nevada—
Jan.-Mar
Apr .-June...
July-Sept...
Oct.-Dec...

Within
15 days.

34,453.443 10,301,178 16,919,189 12,953,863

263
271
271
272

Idaho—
Jan.-Mar
Apr .-June..
July-Sept...
Oct. D e c . . .

Maturities.

72,732

10,550,546

30,000

81
82
82
85

3
9
18

Total..
Utah—
Jan-Mar

23

Apr .-June.. „

24

July-Sept...

24

Oct.-Dec...

24

Total




c
9
10

19,370

24,154

192,128

260,000

8,112

492,080

58,075

114,261

299,710

39,895

1,722,437

256,877

315,439

639,220

82,339

503, 764
1,004,021
3,016,312

2,233,887

339,106

621,828 1,198,930

130,346

4,524,097

ANNUAL REPORT OP THE FEDERAL RESERVE BOARD.

117

Bills, including member banks' collateral notes, but excluding rediscounts between Federal
Reserve Banks, discounted by each Federal Reserve Bank during the calendar year 1917,
distributed by States and maturities as of date of discount—Continued.

Districts.

Member
banks
at end
of each

q

Banks
accommodated
during
each
quarter
and the
year
1917.

Total bills
Over discounted.
90 days.

77
78
81
83

2
32
19

Total

547

156

Within
15 days.

From
16 to 30
days.

$1,955,256
2,124,532

$385
$376,347 $940,530 699,475
869,488 2,265,589 1,651,088

$4,404
267,876
8,320

$4,789
4,239,484
6,919,017

4,079,788 1,245,835 3, 206,119 2,350,948

tr

District No. 12—San
Francisco—Contd.
WashingtonJan .-Mar....
Apr .-June...
July-Sept...
Oet.-Dec...

Grand total for
S a n
Fran Cisco

Maturities.

280,600

11. 183.23(1

45,941,273 13,542, 592 23,602,152 18,642,140 1,253,049

102,931,200

From
31 to 60
days.

From
61 to 90
days.

EECAPITULATION.
No. 1.—Boston
No. 2.—New Y o r k . .
No. 3.—Philadelphia
No. 4.—Cleveland...
No. 5.—Richmond...
No. 6.—Atlanta
No. 7—Chicago
No. 8.—St. Louis
No. 9.—Minneapolis.
No. 10.—Kansas City
No. 11.—Dallas
No. 12.—San Francisco
Total for calendar year
1917
Per cent
Total for 1916.
Total for 1915.

402
670
638
764
530
392
1,100
479
773
958
632
547

7,885
7,627
7,648




218 174,166, 003 39,878,294 41 672,737 94,006,321 1, 195,955 350, 919,310
208,354 99,376, 606 12,504 6,511,274,920
322 6, 344, 746, 768 17,930,
201 175,777, 337 12,286,
i,573 789, 675 25,531,432 30,991 223,416,003
386,
67,940 211,176,106
160 146, 746, 220 26,101 443 18,873,615
9,669,680 18,673,480 250,837 1,295,537 401,220,685
246 350,331,
228
541
149
284
364
258
156

63, 721,
6, 745,886 14,096, 705 498,645 1,052,152
412,463, 238 26,327, 005 45,664,391 29,865,996 7,551,473
131, 799, 689 15,036, 21 18, 213,616 15,659, 693 408,437
39,634,
209,900,
34, 057,

6,308, 281 17,828,740 10,851,497 5,531,811
735,283 872,944 5,604,527
5, 577,321
103,107 5,126,573
1,624, 685 6,140,456

95,114, 744
521,872,103
181,117,652
80,154,71G
237,690,788
52,052,600

45,941,273 13.542,592 3,602,152 18, 642,140 1,253,049 102,981,206

3,127 8,129, 285,894 181,023,665 272,499,204 357,046,106 29,130,949 8,988,990,818
2.0
90.6'
4.0
3.1
0.3
1,788
115,053,100
34,422,900 41,576, 600 16,817,900 207,870,500
28,509,200
1,920
57,837,400 57,322,40019,684,000 161,353,000

Number of banks, by districts, accommodated through the discount of paper during each month in 1917.
00
January.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Pallas
San Francisco

.

..
. . .

--

Total number of member banks accommodated:
1917
1916
. . .
. .
Total number of member banks:
1917
1916




17
11
14
12
60
56
37
15
30
19
24
14

February.

March.

15

20

17

16

17

21

28
38

18

17

16

43

79

64

67

76

79

6

8

17

16

33

25

30

22

35

68

76

89

115

133

137

132

101

79

102

47

55

56

80

82

87

126

122

151

133

117

228

209

16

33

38

48

85

91

77

127

222

297

373

541

212

11

19

24

30

33

44

40

61

69

78

92

149

114

H

16

13

31

48

83

110

109

54

59

108

123

284

174

O

364

April.

May.

June.

76
98

July.

69
103

August. Septem- October. Novem- December.
ber.
ber.
63
92

71

65

98

89

127
175

Total,
.1917.
218

Total,
1916.

138
237

322

56
62

116

139

201

143

102

111

160

50

127

246

202

12

18

21

55

71

85

98

87

182

115

112

28

31

39

71

8-5

98

83

69

61

48

9

8

15

18

42

47

102
54

51

41

60

84

156

309
614

262

315

384

590

900

960

655

678

642

1,701
314

3 127

606

1,140
383

1,574

535

990
483

953

451

7,624
7,649

7,635

7,633

7,643

7,659

7,676

7,700

7,733

7,847

7,639

7,631

7,606

7,621

7,621

7,618

7,748
7,624

7,783

7,643

7,626

7,628

o

448

336

.7,885
7,627

189
301
76

1 788

w

IP

w

w
o
>
fcd

o

Acceptances bought in open market and from other Federal Reserve Banks during each month in 1917, 1916, and 1915.
Federal Reserve Bank.

January.

February.

March.

April.

May.

June.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..

$3,038,839
2,605,561
2,107,327
1,351,779
2,485,360
1,741,822
1,010,250
1,283,005
1,421,725
385,388
307,374
2,878,750

$5,262,222
20,242,315
10,058,886
6,185,295
6,206,566
944,791
6,701,460
4,653,124
2,543,352
2,684,869
1,665,676
3,492,123

$5,157,262
1,763,414
4,610,296
1,037,722
3,653,874
2,032,077
3,160,135
601,545
2,702,961
145,390
44,458
3,243,504

$1,245,087
9,687,415
5,208,807
2,888,038
5,685,718
1,158,047
2,887,501
1,671,672
5,564,080
745,305
363,128
4,147,293

$10,217,813
28,839,605
5,404,559
7,428,129
3,873,881
1,218,040
11,018,641
4,524,450
951,049
3,814,032
573,090
4,081,083

$8,543,882
83,248,508
3,441,475
3,082,041
4,288,803
1,442,268
19,041,205
993,134
632,000
7,865,082

Total
Percent
Total, 1916..
Per cent
Total, 1915..
Percent

20,617,180
1.9
9,603,000
2.5

70,640,679
6.6
12,416,000
3.2
2,666,000
4.1

28,152,638
2.6
22,918,000
5.9
8,356,000
12.9

41,312,691
3.8
18,499,000
4.8
4,018,000
6.2

82,544,372
7.7
21,912,000
5.7
2,865,000
4.4

135,229,697
12.5
42,325,000
11.0
4,701,000
7.3




2,651,299

July.

August.

September.

$3,403,446
25,012,534
11,472,425
5,681,887
3,869,332
515,469
6,094,057
1,285,644
13,000
3,267,191
2,617,976
3,631,104

$7,551,527
12,512,825
7,450,793
14,531,566
1,490,697
1,859,728
5,693,449
3,735,083
3,109,666
2,842,465
1,510,357
9,834,646

$16,633,620
62,434,840
6,05G, 282
9,855,782
3,025,707
1,533,923
1,924,933
322,696
95,079
9,117
4,225,754
2,928,733

66,864,065
6.2
36,575,000
9.5
5,986,000

72,122,802
6.7
28,447,000
7.4
4,656,000
7.2

109,046,466
10.1
37,087,000
9.6
4,548,000
7.0

w
ft
o
w
O

ft
W
ft

ft
m
ft

w
o
>
>

o

Acceptances bought in open market and from oilier Federal Reserve Banks during each month in 1917, 1916, and 1915—Continued.

to

o
Per cent.
Federal Reserve Bank.

October.

November.

December.

Total, 1917.

Total, 1916.

Total, 1915.
1917

Boston
New York
Philadelphia....
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...,

$5, 640,728
50, 307,095
4 565,180
7,361,666
5. 620,717
3,470,559
3, 181,598
173,796
536,000
30,535
900,497
105,811

$11,836,348
61,395,916
19,479,626
22,997,670
10,465,939
4,645,617
1,046,114
7,777,937
10,077,199
5,019,267
14,009,013
17,408,076

$12,997,431
106,915,574
5,998,142
8,707,012
7,449,467
5,830,223
4,954,717
2,710,185
5,426,206
16,772
4,799,594
12,203,686

$91,528,205
464,965,602
85,913,798
91,109,193
58,116,061
26,392,564
60,714,061
29,732,271
33,072,316
26,825,413
35,076,917
68,260,108

Total
Percent
Total, 1916
Percent
Total, 1915.
Percent

86,894,182
8.1
40,895,000
10.6
6,340,000

186,218,728
17.3
48,547,000
12.5
7,919,000
12.2

178,009,009
16.5
66,871,000
17.3
12,790,000
19.7

1916

1915

1,077,712,509




$52,377,000
123,406,000
53,122,000
27,542,000
11,313,000
12,544,000
27,061,000
20,681,000
13,539,000
8,191,000
3,543,000
32,776,000

$14,105,000
25,834,000
7,565,000
2,963,000
250,000
72,000
5,782,000
1,801,000
1,455,000
1,788,000
3,230,000

8.5
42.9
7.9
8.4
5.4
2.4
6.2
2.7
3.1
2.5
3.2
6.8

13.6
32.0
13.8
7.1
2.9
3.2
7.0
5.4
3.5
2.1
.9
8.5

21.7
39.8
11.7
4.6
.4
.1

o
H

2.2

5.0

100.0
386,095,000
100.0
64,845,000

o

Acceptances bought in open market during each month in 1917, distributed by maturities
MATURITIES.
Month.

30

Within 15 days.

From 31 to 60
days.

From 61 to 90
days.

Over 90 days

January.....
February..
March
April
May
Tune
July
August
September.
October
November.
December..

$177,411
1,368,786
85,221
1,787,866
2,755,184
7,648,046
1,617,112
3,627,609
1,121,029
1,473,265
4,679,280
5,707,389

$1,742,999
8,549,128
8,466,068
8.335,122
9.585,123
15,738,784
5,223,829
7,620,821
11,403,123
10,670,004
26,514,207
15,043,930

$2,871,844
21,438,280
5,733,322
13,953,959
17,226,847
29,561,285
10,001,985
19,060,672
25,096,852
17,790,456
62,133,013
42,166,367

$14,647,328
38,459,632
11,746,055
16,355,820
43,938,859
70,711,531
44,500,009
40,943,315
67,230,371
54,414,621
92,045,346
112,302,369

$1,177,598
824,853
2,121,972
879,924
9,038,359
5,570,051
5,521,130
870,385
4,195,091
2,545,836
846,882
2,848,954

Total

32,048,198

128,893,138

267,034,882

613,295,256

36,441,035

Total.
$20,617,180
70,640,679
28,152,638
41,312,691
82,544,372
135,229,697
66,864,065
72,122,802
109,046,466
86,894,182
186,218,728
178,069,009

O

n

3

1,077,712,5

Acceptances sold by the Boston and New York Federal Reserve Banks to other Reserve Banks during the calendar year 1917.

Purchased by Federal Reserve Bank
o—
f

Sold by Federal Reserve Bank
o—
f
Total.




Sold by Federal Reserve Bank
o—
f
Total.

of—

Boston.

New York.

Boston.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago

Purchased by Federal Reserve Bank

$5,040,527

St. Louis

$2,254,577

$4,689,818

$6,944,395

19,659,207

Minneapolis

0,754,814

9,919,972

16,674,786

12,383,051

15,204,040

Kansas City....

4,260,291

5,003,971

9,264,262

27,575, SGS

40,102,053

Dallas

3,356,984

3,356,984

1,005,047

1,005,047

$5,046,527
$19,659,207
2,820,989
12,526,185

5, 572,190
1

,

New York.

San Francisco..

Total.

Figures included with acceptances purchased as shown above.

739,384

24,594,028

25,333,412

10,326,860

9,921,757

20,248,617

64,914,497

103,497,023

U68,411,520

<
W
O

Amounts of United States bonds and one-year Treasury notes (par value) purchased by Federal Reserve Banks during each month in 1917.
Federal Reserve Bank.

January. February.

Maxell.

April.

May.

June.

$1,900
750,000 $1,500,000

Boston
New York
Philadelphia
Cleveland»
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

1,240
25,000

25,450

1,735,000

60,000

Total, 1917
Percent

2,431,390
2.7

Total, 1910.
Per cent

6,627,180 9, 496,750 5,249,85010, 479,600 ,113,6001,322,440
10.8
2.3
18.
16.
14.5
11.7

$72,500

$1,057,750
$57,500 4,022,000
1,098,260

26,400
46,250
525,000

458,000

Classes of securities purchased each month:
2 per cent bonds
2,370,150
3 per cent bonds
61,240
3£ per cent bonds
4 per cent bonds
1 year Treasury notes.
Total, 1917
Total, 1916

!, 490,500
710,500
470,000
1,461,500
45,010
1,094,740
562,750

July.

505,000
583,500
511,000

950
600,95 10,522,510 ;, 090,040
4.6
11.9
0.7

144,500 8,565,51G 2,867,040
3,000
200
50,000
250
25,000
456,000 1,882,000 1,220,000

August. September.

October.

$80,000

$53,650 380,000
317,700
10,200
15,000 1,059,000 2,000,000
29,600 408,200
9,000 134,600
40,200
26,700
2,450
4,000 192,150
1,100
l,192,5i 6,918,
9,000
50016,918,6001,383,560 20,404,600
8,000
750
57,800
$2,000
2,000
1,000
50,000
7,500
10,000
3,400
130,700 10,750
190,650

November.

December.

i $276,346
$2,120
325,000 3,122,950
10,848,050
756,000
1,000
152,050
42,900
9,100 6,539,400
10,000
27,950

500

825,000
15,000

Total,
1917.

501,100 2,193,300
3.9
0.9

50,000
2,000

67,000
1,232,900:18,299,650 3,825,460 20,830,650
9,1
756,000 1,370,000

257,060 5,628,300 5,539,750
9.8
0.4

1917 1916

418, 11612,332,000 1.6
7,818,750 12.3 13.8
883,
2,500,000 13.9 4.4
274,
8,403,160 7.7 14.8
785,
4,335,250 1.8 7.6
593,
2,595,500 9.3 4.6
274,
8,644,100 46.7 15.2
379,
2,419,000 0.7 4.4
650,
615.
2,552,920 0.
4.5
187,
8,362,500 1.3 14.7
394,
4,163,250 1.6 7.3
142,
2,623,750 2.4 4.6

52,000 1,997,900 19,736,650 3,825,460 20,830,650 1.,559,400 U,546,946 21,406,420 18,600,316
0,830,i
2.2
1.8
0.1
4.3
1.7
24.2
23.
22.2
341,250
0.6

Per cent.

Total,
1916.

. 1100.0
56,750,180
100.0

13,997,200 4 8,12S, 100 15.8 84.8
188,540 3,918,880 0.2 6.9
51
157,650
250,550 1,265,750 45,862,610
29,650 1,294,396 20, 130,670 21,488,966 4,403,200 24.2 7.8
),
300,000 8.0 0.5
1,369,000
10,000 7,0C3,000
3,100

2,000

100.0
;,
1,830,650 1. 559,400 1 1,546,946 21,406,420 88,600,316
'.,
600,95010,
52,000 1,997,900 19,736,650 3, 825,460 20,
1,522,510 4,090,040
56. 750,180
100.0
,496,750 8,249,850 10,
1,479,600 6,113, OOOil, 322,440
341,250 501,100 2,193,300 257,060 5,628,300 5,539,750
6,627, 180 9,
2,431,390

1 Includes partia payments on Liberty loan bonds sold to individual subscribers.
2 Figures are exclusive of $58,000 of 1-year Treasury notes received from the Secretary of the Treasury in exchange for a like amount of matured notes held by the bank and
of $83,700 of coupon bonds exchanged for registered bonds, both of which amounts are included in the Cleveland report.




Amounts of United States bonds and one-year Treasury notes sold by Federal Reserve Banks during each month in 1917.
co §

January. February.

Federal Reserve Bank.

March.

April.

$695,000

July.

$30,000

530,000

May.

1,056,100

June.

August.

September. October. November. December.

Total.

o

*n Boston
1 New York . .
PhiladelDhia .
Cleveland
Richmond
Atlanta
Chicago .
St. Louis
Minneapolis...
Kansas City
Dallas
San Francisco
Total sales
2 per cent
3 Der cent. .
3 | percent
4 per cent
1-year Treasury notes
Total




$556,000
1,495,000
690,000
1,014,100
753,000
1,213,000
1,168,000

$110,000
86,000
136,000
187,000
603,100
655,000
284,000

424,000

i$380

i$198
414,720
11,800
3,250
100,700
5,400
750,000
2,350

106,000

i$304
30,900
315,000

40,000
3,000
241,000

$100
$780,000

3,850
10,634,400
5,000

12,366,260
34,200

994,600
25,000

164,650

152,000

1,000
6,700

1 000 000
8,313,100

2,367,100

25,000
7,288,100

1,561,100

1,377,000

1,330,100

100

3,100

780,000

12,565,490

1,069,254

11,139,454

7,450
400

780,000
1,000,000

806,000

1,377,000
1,377,000

1,330,100

12,565,490

1,068,254

780,000

12,565,490

1,069,254

1,327,000

2,367,100

2,550
300,700

i $827,374
3,451,300
5,449,300
3,276,150
1,650,500
6,920,900
41,370,260
66,550
530,000
10,000
502,100
1,321,350

17,127,919 165,375,784

11,139,454

1,295,218
1,050

2 000
7,726,706
1231,293
50,000

25,000
8,854,400
7,674,838 42,249,900
9,453,081 i 9,685,424
4,561,000

11,139,454

1,296,268 18,009,999

17,127,919 165,375,784

1,000
100

458,050
70,700
1,000
7,000,000

i $156,969
223,550
5,296,500
27,650
83,000
5,039,550
7,000,000

1,296,268 18,009,999

100

8,313,100

i $3,219
474,480

150,000

200,000

-

i$304
1,650

i Includes partial payments on Liberty loan bonds sold to individual subscribers.

W

o

to
CO

United States bonds and 1-year Treasury notes held by each Federal Reserve Bank on Jan. 1, 1917, purchases and sales during the year, and amounts
on hand Jan. 1> 1918; also conversion operations of each Federal Reserve Bank during the year.
Boston.

New
York.

Philadelphia.

Cleveland.

Richmond.

Atlanta.

Chicago. St. Louis.

Minneapolis.

Kansas
City.

Dallas.

San Francisco.

Total.

Balance on hand Jan» 1,1917:
!,
!,
.,
7,361,
!,492,850$4,328,250$21,633,750 $44,,247,650
4,328,
$1,332,00011. 042,550 $1.,651,000 $7,361,460 $2, 192,450 $1,,710,000 $8,
5,858, 100 $2,202,900 $2. 442,340 $8;
:
618,Q00 1,070,000
824,000 1,517,000
891,000
700,000
500,000 11,167,000
1,000,000 1,205,000 1,174,000
963,000
705,000

United States bonds
1-year Treasury notes

2,332,000 2,247,550 2,825,000 7,979,460 3,262,450 2,534,000 10,375,100 3,093,900 3,142,340 9,455,850 5,033,250 3,133,750 55,414,650

Total
Purchases during year:

1

615,650 1,187,240 1,394,950 2,142,600

650,050

66,550

530,000

10,000

s

502,100 1,321,350 2 60,814,784
4,561,000

2 827,374 3,451,300 5,449,300 3,276,150 1,650,500 6,920,900 41,370,260

Total purchases during year

650,050

2 827,374 1,726,300 5,449,300 1,640,150 1,194,500 6,570,900 40, 976,260
456,000
1,725,000
1,636,000
350,000
394,000

1-year Treasury notes

>

81,537,316

1,418,116 7,646,60012,274,250 4,159,700 1,137,500 7,924,900 40 985,760
3,237,000
456,000
394,000
2,626,000
350,000
1,418,116 10,883,600 12,274,250 6,785,700 1,593,500 8,274,900 41,379,760

United States bonds

to

6,550

530,000

10,000

502,100 1,321,350 2 65,375,784

7,063,000
615,650 1,187,240 1,394,950 2,142,600

88,600,316

Sales during years
United States bonds
1-year Treasury notes
Total sales during year
Conversions:
United States 2 per cent bonds converted during year

, 2,389,000 3,552,500 2,749,200 3,227,200 1,799,100 1,335,500 3,722,000 1,106,300 1,281,600 1,642,900 1,451,200 2,000,000 26,256,500

CO

fcl

Received from United States Treasurer in exchange for bonds converted—
3 per cent conversion bonds of 1947. 1,195,000 1,776,500 1,375,200 1,614,200

900,100

668,500 1,861,000

553,300

641,600

821,900

726,200 1,000,000 13,133,500

899,000

667,000 1,861,000

553,000

640,000

821,000

725,000 1,000,000 13,123,000

3 per cent 1-year gold Treasury
notes
Total




1,194,000 1,776,000 1,374,000 1,613,000

2,389,000 3,552,5001 2,749,200 3,227,200 1,799,100

1,335,500 3,722,000 1,106,300

1,281,600 1,642,900 1,451,2QQ 2,00.0,0.00 26,25.6,5.00

W
O

Balance on hand Jan. 1,1918:
United States bonds
1-year Treasury notes

i 728,742 5,186,850 7,101,950 8,268,010 1,236,450 2,397,000 7,006,600 2,233,400 1,887,990 8,849,090 4,496,100 2,455,000 i 51,847,182
2,194,000 4,493,000 2,548,000 3,221,000 1,969,000 1,491,000 3,378,000 1,444,000 1,340,000 1,784,000 1,430,000 1,500,000 26,792,000
2,922,742 9,679,850 9,649,950 11,489,010 3,205,450 3,888,000 10,384,600 3,677,400 3,227,990 10,633,090 5,926,100 3,955,000 i 78,639,182

Total
1
2

Includes unpaid portion of 4 per cent Liberty loan bonds sold by Boston Federal Reserve Bank to individual subscribers.
Includes partial payments on Liberty loan bonds sold by Boston Federal Reserve Bank to individual subscribers.

Public debt refunding operations conducted by the Secretary of the Treasury under authority of sec. 18 of the Federal Reserve Act during the calendar year
1917.
O
&
H
O
i

TWO P E R CENT BONDS OF THE UNITED STATES SUBMITTED BY F E D E R A L R E S E R V E BANKS AND CANCELED.
Jan. 1,1917.
Federal Reserve Bank.

Boston
New York
Philadelphia
Cleveland ...
Richmond . .
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City..
Dallas
San Francisco
Total.




2 per cent
consols, 1930.

$1,252,000
142,000
1,651,000
903,900
999,100
1,205,100
2,331,000

2 per cent
Panamas,
1936-1938.

$80,000
900,000
1,500,000
800^000
120,000
559,000

Total for year 1917.

Apr. 1,1917.

Total.

$1,332,000
1,042,000
1,651,000
2,403,900
1,799,100
1,325,100
2,890,000

1,010,000
1,392,900
951,200
2,000,000

50,000
250,000
500,000

1,060,000
1,642,900
1,451,200
2,000,000

13,838,200

4,759,000

18,597,200

2 per cent
consols, 1930.

$1,057,000
2,185,500
1,092,000
60,000

2 per cent
Panamas,
1936-1938.

$325,000
6,200
763,300

$1,057,000
2,510,500
1,098,200
823,300
10,400
832,000
1,106,300
221,600

10,400
832,000
1,106,300
221,600

6,564,800

Total.

1,094,500

7,659,300

2 per cent
consols, 1930.

2 per cent
Panamas,
1936-1938.

Total.

9
3

$2,309,000
2,327,500
2,743,000
963,900
999,100
1,215,500
3,163,000
1,106,300
1,231,600
1,392,900
951,200
2,000,000

$80,000
1,225,000
6,200
2,263,300
800,000
120,000
559,000

20,403,000

5,853,500

50,000
250,000
500,000

$2,389,000
3,552,500
2,749,200
3,227,200
1,799^100
1,335,500
3,722,000
1,106,300
1,281,600
1,642,900
1,451,200
2,000,000

1

26,256,500

to

Public debt refunding

operations conducted by the Secretary of the Treasury under authority of sec. 18 of the Federal Reserve Act during the calendar year

to

1917—Continued.
THIRTY-YEAR 3 PER CENT CONVERSION BONDS AND ONE-YEAR 3 PER CENT TREASURY NOTES ISSUED TO FEDERAL RESERVE BANKS.
Apr. 1,1917.

Jan. 1,1917.
Federal Reserve Bank.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total....




One-year
Conversion
Treasury
bonds, series notes, series
1917-1947.
Jan. 1,
1917-18.

Total.

$666,
521,
826,
1,201,
900,
658,
1,445,

$666,000
521,000
825,000
1,202,000
899,000
667,000
1,445,000

$1,332,000
1,042,000
1,651,000
2,403,900
1,799,100
1,325,100
2,890,000

530,
821,
726,
1,000,

530,000
821,000
725,000
1,000,000

1,060,000
1,642,900
1,451,200
2,000,000

9,296,200

9,301,000

18,597,200

One-year
Conversion
Treasury
bonds, series notes, series
1917-1947.
Apr. 1,
1917-18.

Total for 1917.

Total.

One-year
Treasury
notes.

Total.

3

$528,000
1,255,000
549,000
411,000

$1,057,000
2,510,500
1,098,200
823,300

10,400
416,000
553,300
111,600

416,000
553,000
110,000

10,400
832,000
1,106,300
221,600

3,837,300

3,822,000

7,659,300

$529,000
1,255,500
549,200
412,300

Conversion
bonds, series
1917-1947.

$1,195,
1,776,
1,375,
1,614,
900,
668,
1,861,
553,
641,
821,
726,
1,000,

$1,194,000
1,776,000
1,374,000
1,613,000
899,000
667,000
1,861,000
553,000
640,000
821,000
725,000
1,000,000

$2,389,000
3,552,500
2,749,200
3,227,200
1,799,100
1,335,500
3,722,000
1,106,300
1,281,600
1,642,900
1,451,200
2,000,000

13,133,500

13,123,000

26,256,500

O

I
W

§

f

W

Amounts originally allotted by Federal Reserve Board on basis of capital and actual amounts converted.

Federal Reserve Bank.

Boston
New York...
Philadelphia
Cleveland....
Richmond...
Atlanta
Chicago




Amounts originally allotted
by Federal
Reserve Board.
$2,696,200
6,412,900
2,814,200
3,227,200
1,799,100
1,335,500
3,722,100

Amounts
actually
converted.

$2,389,000
3,552,500
2,749,200
3,227,200
1,799,100
1,335,500
3,722,000

Federal Reserve Bank.

Amounts originally allotted
by Federal
Reserve Board.

Amounts
actually
converted.

St. Louis......
Minneapolis...
Kansas City..
Dallas
San Francisco

$1,504,600
1,281,600
1,642,900
1,451,200
2,112,500

$1,106,300
1,281,600
1,642,900
1,451,200
2,000,000

Total...

30,000,000

26,256,500

s
w

I
W

o
0

to

Amounts of municipal warrants bought by Federal Reserve Banks, during each month of calendar year 1917.

to

[]JQ thousands of dollars.]
January. February March.
Boston.
. .
New York
2,798.0
Philadelphia
1,268.3
Cleveland
838.2
Richmond
Atlanta
3.0
Chicago .
1,170.7
St. Louis
466.0
Minneapolis.
151.7
Kansas City
152.2
Dallas .
121.7
San Francisco
760 7

May.

126.7
17.4

50.4
29.2
12.3

7.2

127.0
2,459.8
25.2
1,043.7
15.0

April.

June.

August. Septem- October. November.
ber.

27.0

July.

OO

278.9
362.0

33.5

11.6

145.0

130.6

10.2

9,88.6
552.5

2.6
1,023.3

1,016.5
10.0

15.2

125.9
9.3

4.9

December.

100.0
91.3

5.1

104.2

103.8
25 2

4.9
Total, 1917.. 7, 730. 5 5,852. 7 1,031.0
280.3
118.9
100.0
0.03
Percent
45.96
1.67
0.71
0.59
6.13
34.79
Total, 1916.. 9, 806.3 10,450.8 10,425.9 10,361.1 8,979. 2 5,477.8 7,524.5
11.5
Percent
10.8
11.4
9.9
6.1
8.0
11.5

135.2
0.80
1,602.9
1.8

21.8
1,186. 7
0.13
7.05
5,090.9 10,267.5
5.6
11.3

164.1
0.98
7,565.1
8.3

195. 5
1.16
3,404.0
3.8

Total,
1917.

Total,
1916.

127.0
7,621.6
6,324.7 38,432.3
1,621.4
7,823.0
2,949.1 10,660.2
115.0
529.6
415.7
420.3
2,164.4
9,733.3
1,018.5 3,619.2
177.1 3,734.8
431.1
1,996.8
691.7
152.3
785.9
5,962.6

Per
Per
cent, cent,
1917. 1916.
0.76
37.60
9.64
17.53
0.68
2.47
12.87
6.06
1.05
2.56
4.11
4.67

8.4
42.4
8.6
11.7
0.6
0.5
10.7
4.0
4.1
2.2
0.2
6.6

o
hrj

H

W

16,821.6
100.00
90,686.0
100.0

w
NOTE.—The amounts of municipal warrants purchased, as shown above, do not in all cases agree with the amounts shown in the reports of Federal Reserve agents, as
figures given above represent amounts charged to investments, while figures shown in some of the agents' reports represent the par value of warrants purchased.




O

I

Investment operations, exclusive of 'purchases of United Stales certificates of indebtedness, of Federal Reserve Banks during 1917 and 1916, by months
and classes of investments.

Year and month.

January
February
March
April
May
June
July
August
September
October
November
December
Total, 1917.
Total, 1916.




Acceptances bought in open market.

United States bonds and Treasury notes.

Commercial
paper
discounted.

Bankers.

Trade.

$18,326,286
22, 408,604
26, 788,982
50, 055,801
91,413,473
750,269,838
460, 733,354
220,939,974
548, 164,104
2,681,165,854
3,206,486,771
433,413

$20,376,041
68,994,291
27,475,820
41,019,251
79,355,481
132,481,554
63,629,153
67,510,898
104,162,500
85,443,102
181,872,277
174,444,166

$241,139
1,646,388
676,818
293,440
3,188,891
2,748,143
3,234,912
4,611,904
4,883,966
1,451,080
4,346,451
3,624,843

$20,617,180
70,640,679
28,152,638
41,312,691
82,544,372
135,229,697
66,864,065
72,122,802
109,046,466
86,894,182
186,218,728
178,069,009

$2,370,150
144,500
8,565,510
2,867,040
50,000

9,014.186,454
207,870,500

1,046,764,534
369,762,300

30,947,975
16,332,700

1,077,712,509
386,095,000

13,997,200
48,128,100

Total.

2 per cent.

3 per cent.

3J per cent.

$61,240
200
50,000
3,000
2,000
67,000

3,100
2,000

188,540
3,918,880

4 per cent,

$250
25,000

$1,232,900
18,299,650
3,825,460
20,830,650
157,650
250,550
1,265,750
45,862,610

9,000

H
O

w
H
O

29,650
1,294,396
20,130,670
21,488,966
4,403,200

i
w
o

to

Investment operations, exclusive of purchases of United States certificates of indebtedness, of Federal Reserve Banks during 1917 and 1916, hy months
CO
and classes of investments—Continued.
Q
United States bonds and
Treasury notes.

Municipal warrants.

Year and month.

Total, 1917.

1-year
Treasury
notes.
January
February..
March
April
May
June
July
August
September.
October
November.
December..
Total, 1917..
Total, 1916..




$456,000
1,882,000
1,220,000
756,000
1,370,000

1,369,000
10,000
7,063,000
300,000

Total.

City.

$2,431,390
600,950
10,522,510
4,090,040
52,000
1,997,900
19,736,650
3,825,460
20,830,650
1,559,400
1,546,946
21,406,420

$7,201,908
5,798,677
1,021,383
266,433
75,656

88,600,316
56,750,180

State.

$2,040

All other.

$526,552
53,985
9,640
13,853
43,265
4,925

Total, 1916.

Total.

124,404

133,052
125,023
2,944

9,278
10,000
10,000
39,050
68,200

$7,730,500
5,852,662
1,031,023
280,286
118,921
4,925
100,000
135,216
21,756
1,186,656
164,073
195,548

$49,105,356
99,502,895
66,495,153
95,738,818
174,128,766
887,502,360
547,434,069
297,023,452
678,062,976
2,770,806,092
3,394,416,518
1,137,104,390

15,769,759
85,662,400

263,059
4,087,100

788,748
936,500

16,821,566
90,686,000

10,197,320,845

100,000
125,938
11,756
1,043,604

$37,150,980
40,028,950

o

50,981,150

w

50,861,300
48,199,800
60,785,340
64,354,450

H
O
H

W

47,902,200
58,679,500
63,282,160
79,614,600

139,531,250

741,401,6

w
W

1

Total investment operations (exclusive of United States certificates of indebtedness) of Federal Reserve Banks during each month in 1917.
Federal Reserve Banks. January. February. March.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

April.

May.

June.

July.

August. September.

October.

November. December.

Total.

237,301 $9,322,187 $11,313,775 $11.
,194,509 $21,520,242 854,762,507 $45,833,930 S34,008,633 $42, 643,906 $17,426,697 $72,650,494 $119,078,427 $443,992,608
008,
!
,
074,236 24,684,930
537,219 382,032.
,847,997 12,126,638 35,435,315 636,974,965 288,878,639
!,483 2,435,196,730 ,725,388,208 397,456,543 7,018,633,903
940,77111, 766,311 ,720,424 7,780,935 25,878,818 46,166,378 33,648,283
064,872 25,000,483 21,394,910 50,991,728 61,871,567 323,225,480
861,364 9,7
771,303 ,078,665 12,367,954 12,364,331 14,286,956 17,613,760 31. 344,170 27,590,006 34,065,986 71,336,386 72,339,201 312,020,076
113,99212,463,798 ,557,926 17,850,227 28,950,676 34,386,530 38,483,310 31 303,845 53,156,900 30,856,826 66,897,279 127,023,937 461,045,246
831,894 097,817 ,043,195 3,638,069 4,447,965 4,300,048 4,764,512
878,896 9,642,351 20,591,323 27,834,659 37,127,114 130,197,843
475,117 728,315
932,290 6,113,932 14,233,710 45,394,072 56,624,084
317,759 57,965,950 99,420,562 163,945,464 141,979,156 632,130,411
774,492
439,062 6,188,527 10,473,522 5.543,937 16,724,850
839,427 25,349,894 26,045,543 40,091,632 57,693,031 217,518,606
2,354,689 5,7
951,062 10,177,57' 4,745,445 10,497,832 8,821,257
8,210,489 28,984,352 18,873,321 119,026,868
2,801,402 4,362,900
148,906 4,452,325
577,659 1,089,700 8,100,880 19,706,619 19,411,691
828,926
323,333 28,260,858 44,466,463 75,018,316 47,231,067 271,137,854
122,342
94,216,141
638,073 2,333,321 2,846,179 3,773,121 6,800,881
1,087,911 749,591
742,224 9,440,775 16,625,539 26,904,709
14,273,817
395,025 4,877,429 5,131,683 11,709,395 9,828,872 14, 514,168 12,527,045
5,497,753 658,909
16,505,024 44,373,297 42,157,209 174,175,809

Cj
f
W
O

w
H
O
H

W

fed

Total, 1917
Total, 1916
Total, 1915

r
49,105,356 99,502,895 66,495,153 95,738,818174,
7,434,069 297;
78,062,976 2,770,806,092 3;394,416,5181
',023,452 6:
[,137,104,39010,
1,197,320,845
, 502,360 54:
!,
37,150,980 40,028,950 50,981,150 50,861,300 48,199,800 60,785,340 64,354,450 47,902,200 58,679,500 63,282,160 79,644,600 139,531,250 741,401,680
33,760,100 307,770,770
23, 450,300 20,345,800 26,834,900 17,838,900 20,242,500 23,179,300 27,048,000 29,375,00C 23,556,300 23,961,000 38,178,720




fed

m
fed

o

CO

Earnings on investments

of Federal Reserve Banks—average amounts of earning assets held by each Federal Reserve Bank, and annual
during 1917.

Average balances for the year of the several classes of
earning assets.

Bills discounted
for members and
Federal
Reserve
Banks,

Bills
bought
in open
market.

MuniciUnited
pal warStates
securities.
rants.

Total.

Bills
bought
in open
market.

Municipal
warrants.

United
States
securities.

CO

Calculated annual rate of earnings
from—

Earnings from—

Bills
discounted
for
members and
Federal
Reserve
Banks.

rates of earnings

Total.

Bills
discounted
Total
for
Bills Munic- United investmem- bought
States ment
bers in open war- securi- holdand market. rants.
ties.
ings.
Federal
Reserve
Banks.

o
H.

o
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. L o u i s . , . . .
Minneapolis..
Kansas City-.
Dallas
San Francisco

$12,812,843 $15,463,576 $173,214
78,622,402 55,314,853 2,192,696
9,923,917 14,916,598 628,229
9,531,459 15,348,152 1,457,326
15,792
10,720,028 6,235,457
98,640
5,812,100 3,067,694
24,407,209 12,690,553 1,001,753
9,314,101 5,384,333 446,635
153,483
7,370,500 4,703,067
10,635,571 5,346,357 178,525
4,074,509
262,003
4,666,809
6,468,358 9,501,149 409,914

$3,378,029
14,374,096
4,268,208
11,314,574
3,672,428
4,511,059
15,893,460
4,266,752
3,833,442
11,079,176
0,044,720
5,717,007

Total...

190,285,297 152,046,298 7,018,216

18,352,957 437,702,768 i, 971,479 4,951,732 215,120 2,367,9




$31,827,662 $571,117 $502,397
150,504,047 2,455,533 1,843,325
29,736,952 370,359 474,653
37,651,511 375,169 496,712
20,643,705 418,629 201,008
13,489,499 231,636 102,312
53,992,975 938,543 394,340
19,411,821 358,239 170,233
10,060,492 311,376 148,531
27,239,629 438,831 171,112
15,048,047 209,065 138,513
22,096,428 292,982 308,596

$5,203
66,470
18,170
48,132
560
3,629
30,880
13,691
4,480
5,137
6,833
11,935

194,785 $1,173,502
378,668 4,743,996
123,875
987,057
317,924 1,237,937
96,143
716,340
140,820
478,397
443,958 1,807,721
110,301
652,464
97,936
562,323
256,792
871,872
159,432
513,843
147,355
760,868
14,506,320

4.46
3.12
3.73
3.94
3.91
3.99
3.85
3.85
4.22
4.14
4.48
4.53

3.25
3.33
3.18
3.24
3.22
3.34
3.11
3.16
3.16
3.20
3.40
3.25

3.00
3.03
2.89
3.30
3.55
3.68
3.08
3.07
2.92
2.88
2.61
2.91

2.81
2.63
2.90
2.81
2.62
3.12
2.79
2 59
2.55
2.32
2.64
2.58

3.69
3.15
3.32
3.29
3.47
3.55
3.35
3.36
3.50
3.20
3.41
3.44

36
.

3.26

3.07

2.68

3.31

H

M

w
o

Exhibit E.—GOLD SETTLEMENT FUND.
Condensed summary of transactions, Jan. 1 to Dec. 31, 1917, both inclusive.
[In thousands of dollars.]

Federal Reserve Bank o—
f

Balance in
fund on opening of business Jan. 1,
1917.

Gold.

Transfers
from agent.

Transfers between Federal
Reserve banks.

"Withdrawals.

Deposits.

Total.-

Gold.

41,300
486,742
225,327
38,395.4
68,674.6
39,147
272,737.5
49,775
43,643.5
40,207.6
19,918
51,775

44,059
131,727
123,499
43,671.4
17,187.4
1,666
75,327
2,834
7,503
3,140
8,559.3
23,685

1,377,642.6

482,858.1

Transfers to
agent.

Total.

Debit.

2,000
100,000
182,990
35,200
31,500
59,430
238,460
39,840
35,020
39,020
16,770
72,651

46,059
231,727
206,489
78,871.4
48,687.4
61,096
313,787
42,674
42,523
42,160
25,329.3
96,336

218,900
560,951
291,868
324,650
228,833
32,907
364,957
61,320
64,630
173,950.5
84,080
236,800

83,183
1,888,938
22,044
1,035
33,409
40,554
221,898
41,480
14,575
10,891 .
27,925.5
257,914

852,881

1,235,739.1

2,643,846.5

2,643,846.5

Credit.
o

Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco

14,737
20,570
8,042
16,953
19,416
6,689
26,183
3,395
7,064
21,235.5
14,966.5
10,489

41,300
461,742
87,496
37,395.4
55,894.6
15,467
160,247.5
33,730
28,123.5
30,387.6
4,742
10,030

25,000
137,831
1,000
12,780
23,680
112,490
16,045
15,520
9,820
15,176
41,745

966,555.6

411,0

n

ts

02

Total...




169,740

CO
CO

Condensed summary of transactions, Jan. 1 to Dec. 81, 1917, both inclusive—Continued.

CO

{In thousands of dollars.]
"Weekly settlements from Jan. 4 to Bee. 27, both inclusive.

Changes in ownership of gold through transfer and settlement.

Net debits.

Total of
weekly net
decreases.

Total of
weekly net
increases.

142,365
882,318
190,140
131,606
128,823
46,072
219,181
86,368
66,438
83,222.5
63,254.5
106,790

147,364
627,587
202,361
192,793
111,521
74,339
282,367
93,756
78,740
101,026
78,220
156,504

Federal Reserve Bank o—
f

Balance in
fund at close
of business
Total debits. Total credits. Net credits. Dec. 31,1917.

Boston
New York....
Philadelphia.
Cleveland
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco

66,007
1,623,827
55,619
17,531
34,539
42,310
116,155
62,197
35,852
8,585
23,605
68,494

1,794,404
8,136,064
2,824,257
1,765,655
1,205,483
695,392
3,140,781
1,699,135
624,475
1,063,314
536,224
833,876

1,935,120
6,553,346
3,106,302
2,150,457
1,383,605
716,012
3,347,026
1,726,363
686,832
1,244,177
607,344
862,476

206,723
41,109
337,664
402,333
212,661
62,930
322,400
89,425
98,209
189,448
94,725
97,094

Total...

2,154,721

24,319,060

24,319,060

2,154,721




14,977
20,854
39,101
37,664
22,101.2
13,007
48,319.5
17,884
20,486.5
37,086.6
24,520.7
15,642

311,643.5 2,146,578

2,146,578

Net decrease Net increase
for year.
for year.

4,999
254,731
12,221
61,187

HI
O

17,302
28.267
63,186
7,388
12,302
17,803.5
14,965.5
49,714
272,033

272,033

W
O

I

135

ANNUAL EEPOET OF THE FEDERAL RESEEVE BOARD.

Gold settlement fund—Changes in ownership of gold through transfer and settlement,
by weeks.
[In thousands of dollars; i. e., 000's omitted.]
Boston.
Week ending,
1917—

Ian. 1-4
11
18
25
Feb 1
8
15
23
Mar. 1
8
15
22
29
Apr 5
12
19
26
May 3
10
17
24
31
June 7
14
21
28
July 5.
12 .
19
26
Aug. 2
9
16
23.
30
Sept. 6 ..
13..
20 .
27
Oct. 4
11
18
25
Nov. 1
8
15
22. .
30

New York.

InInDecrease. crease. crease.
4,548
1,423

Decrease.
16,801
2,095

3,262
2,414
205
5,414

3,970
10,253

Philadelphia.

179
1,353
5,508
1,347

4,830
5,584
5,755
2,794
1,209
4,625
4,689
6,711

13,784
19,840
3,797
16,106
4,090
5,686
17,751
21,700

2,027
4,362
1,440
3,457
6,874
1,738

1,307

3,909

1,634
28,433

1,247

5,255
1,586
7,965
336
314

4,373
25,382 104,846
1,437
4,400
7,354 19,577
6,067 149,800
3,956
3,698
9,705
4,411
2,478
1,399
2,256

2,620
9,268




6,752
5,516

1,560
6,966
1,617
21,088
1,191

10,163
13,444
8,372
9,555
9,042
10,488

569
1,564
1,685
3,046

1,04
434
1,478
1,148

13,114
1,022
4,019
8,418
12,607

13,610
4,685
34
1,698
696
2,608

6,521
23,590

4,996
578
2,953
6,676

5,262

16,089
2,190
13,906
8,283

15,409
5,847
1,139
8,698

5,965
16,081
40,772
25,280
9,203
2,780
6,627

8,366
4 624
6,032
1 697

4 890

393
19,304

874
5,168
503
5,895
4,798

8,182
10,845
6,113
3,371

432
10,198

7,603
842
64

21,394

4,464

2,152
29,306
28 533
19,898

102
357

7,595
5,265
2,371
7,136

762

44,402

1,23d
350

1,591
4,743

29,751

54,359
10,684
37,430
58,521
8,105

1

6,808

3 980

3,169
38,340
16,350

831
646

3,783
291
4,898
512

4,985

16,464
9,147

102,066
3,693
26,318
16,649

10,067

1,117
93

735

3,561
41,551
9,017
39,655
61,846
54,108

574
882
1,761
1,372
436

7,336

13,890

18,595

284
5,308
88
18,844
7,764

246

350
1,174

44,398

2,176
1,204
1,977

1,926
1,308

15,219
75,722

11,639

3,871
1,716
1,387
1,825
3,225

6,422

3,568 53,775
17,062

Richmond.

InInDeInDeDecrease. crease. crease. crease. crease. crease.

11,715
7,007
7,455
124

Cleveland.

13,281
11,721
1,602

6,685
7,194
1,802
432

1,654
6,128
3,542

136

AHNUAL EEPOET OF THE FEDERAL RESERVE BOARD.

Gold settlement fund—Changes in ownership of gold through transfer and settlement}
by weeks—Continued.
[In thousands of dollars; i. e., 000's omiited.]
Boston.
Week ending,
1917—

Dec.

6
13.
20

New York.

InDeIncrease. crease. crease,
1.792

. . . 18,174
....

11,005
7,124

27

15,236
65,638

Cleveland.

Richmond.

InDeDeInInDecrease. crease. crease. crease. crease. crease.
. 19,715
13,580
6,664

33,873

12,456
14,476

3,113
16,560
2,000
1 577

22,523

18,164

20,252

8,000

28-31

Decrease.

Philadelphia.

19,792

5,400

882,318 202,361 190,140 192,793 131,606 I l l , 521 128,823
Total
147,364 142,365 627,587
Net increase or de-254,731 12,221
4,959
61,187
crease (—)
-17,302

Atlanta
Week ending, 1917—

Chic ago.

1,788
1,511
3,475
1,283

11
18
25

157

3,128

15

310

15
22

508

11,729
4,703
2,367

665

364
2,019

78

4,581

5

682

210

19

1,177
2 ,423

26

May

574
1, 051

443

29
12

1,132"

14.. 042
7,573

Q84

3

31

June 7

,158

14
28

July 5...
12
19

7,986

16
23

30

6,880

3,070
1,777

7,664
5,005
21,746
2,454
7,856
22,855
26,904

2,363
1 ,559

581 . . .

26

Aug. 2
9

5,172
16,318

1,150
48

1,057
2,057




2, 468

x,fvW
5,356
2,129
3 714
489

1 558
1 608
2,290
833
3 981
2,068

6,384 . . .
4,482
2, 046
3, 590 . . .
8,003

9,323
1,110
829
4,031
313

5,310

339

7,122
18,805

1,805
2,895

153

10,397
5,392

959
2,466
1 363
432
638

8, MR

3,985
994
938

8,534

459

21

2,231
38
2,155
2,364
2,264

3,299

1,463
598
1,253

24

167

193
1,534
440
360

2, 652

11,338
5,046

51 *>

17

2,557

17,925
3,616

10

308

3, 473
3, 673 . . . .
1, 015

3,454

2,955

. .

615

3,952

93
14

8

Apr

2, 572

5,750

23
1

3,233
878
663
474

6,304
881

1,478
5,416

8

Mar

4,540

3,828

1 ,999
1 421

1

Minneapolis.

Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease.

Jan 1-4

Feb

St. Louis.

3,407
2,652

615
1,222
4,672

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

137

Gold settlement fund—Changes in ownership of gold through transfer and settlement,
by weeks—Continued.
[In thousands of dollars; i. e., 000's omitted.]
Atlanta.
Week ending, 1917—•

6
13
20
27
Oct. 4
11
18
25
Nov. 1
8
15
22
30
Dec. 6
13
20
27
28-31

Minneapolis.

Increase. Decrease. Increase. Decrease. Increase. Decrease. Increase. Decrease.
472

Sept

Total
Net increase or decrease (—)

St. Louis.

Chicago.

2,518
7,867
3,141
2,537
1,910

798
1,643

20,581

3,207
1,908
9,448
5,724

3,812
1,504
1,042
31,690

46,072

28, 267

282,367

1,790

14,718
4,217
4,335

6,191
824
9,649
2,202
14,023
9,638

31,488

157
3,900

3,091

2,303
2,944
5,719

5,261
31,929
656
2,269

3,494
2,799
498
3,444
5,640
1,865
1,762

4,251

13,376
7,009
21,807
784

1,031
129
2,763
310

6,613
13,647
7,582

1,341
2,328
2,262
10 034

74,339

1,716

21,834
4 553

6,472

219,181

93, 756

86,368

7,388

63,186
Dallas.

Kansas City.

7,161
15,211
7,874
10,708

78,740
12,302

San Francisco.

Week ending, 1917—
Increase. Decrease. Increase. Decrease. Increase. Decrease.

Jan. 1-4
11
18
25
Feb. 1
8
15
23
Mar. 1
8
15
22
29
Apr. 5
12 . .
19
26
May 3
10
17
24
31




14,409

3,369
9,263
28

•431
2,088

421

1,331

1,250
3,970
496
886

1,746
1,244
528

430
2,326

1,986
847
1,194
1,304

791
1,015
681
552

645
714
3,581
959

111
457
362

65
2,185

297
• 628.5

1,486.5
3,828
443

1,275
8,979
9,883
2,646
1,147
552

3,625
2,802
334
419
2,127
1,862
2,382
1,480
1,833
109
5,162
4,846
11,294

6,550
1,879
482
1,497

66,438

2,166
6,117
3, 942
7,954

Total.
Increases
and
decreases,,
31,907
16,358
15,121
12,755
14,384
17,467
16,317
10,430
18,206
20,190
9,316
18,376
12,296
11,780
23, 843
27,845
59,862
76,154
50,438
16, 002
34, 276
24,361

138

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Gold settlement fund—Changes in ownership of gold through transfer and settlement,
by weeks—Continued.
[In thousands of dollars; i. e., OOO's omitted.]
Kansas City.

Dallas.

Sau Francisco.

Week ending, 1917—
Increase. Decrease. Increase. Decrease. Increase. Decrease.

June

7
14 .
21 .
28
July 5
12
19
26
Aug. 2
9
16
23
.
30
. .
Sept 6

1,430
2,010
3,653
4,852
5,006
9,817
1,750
3,933
4,529

1,852
6,867

139

5,094
4,214

5,221
2,683

22
30
Dec 6

4,063
5,679
950
1,792
5,564
8,660
11,003

20

669

2,454
13,176
10,557

500*
83,222.5

2,976
3,065
3,307

11,012
9 201
9,681

6,834

28-31




1,726
7,614

1,255
11 111
1,676

1,188

27

4 888
13,810
147

3,822
2,075
3,651
10,470

140

101,026
17,803.5

1,492
552
13,, 857

1,619

628

13

Total
Net increase or decrease (—)

34

6 534

3,654
632
6,104
5,856
1,724
1,374

15,533

...

13,271

3,810
2 900

15

3,032

723

3,483
2,307
1,853

662

.

10,626
853

7,521

362

1,354

13

27
Oct. 4
11
18
25
Nov 1
8

11,206
2,217

5,092

20

7,285
3,426
6,245
6,518
11,020

1,483
2,528
4,330
3,563
359

78,220
14,965.5

63,254. 5

2,000
156,504
49,714

1,937
8,000
106,790

Total.
Increases
and
decreases.
45,054
26 279
50,178
66,851
59,629
110,108
21 483
48,013
149,800
102,066
16,072
30,459
43,588
33,455
43,258
31 608
56,366
28,006
39,802
60,219
17,924
55,889
36,412
44,988
58,411
51,428
38,991
94 302
71,768
62,587

2,146,578

139

ANNUAL EEPOBT OF THE FEDERAL RESERVE BOABD.

14C r/OJ
zEh 'LY TF,
7'HR 0U<3H
/yp
TLL 'ML:NT
GO LD\
J AN. ' 71ID EC.
917.
Wi

1000

300

\
'i

CUT
QUU

1000
•

I

A\\

i\
s/

1
i

1m

/*

A A'/

300

1

\l
1

tt

900

V

700

/
/

I I k |V ^\
I n
/uIf

J \\

400

%

1
I

?00

500

in'

i jli

cUu•ing

600

li

•'

re/.- Wee,•tigSettU rneru
dan,
ve2.- Trot xfers beth

CUT

i
H

f
•I

LLt-

600

SOO

/

*HAJ

300

ZOO

200

100

100
0

0

JAN. FEB. MCH. APR. MAYJUNE JULY
34365°—18




10

OCT. NOV. DEC.

Exhibit F.—CLEARING OPERATIONS, JAN. 1 TO DEC. 31, 1917.

Federal Reserve Bank.

Total number
of items
handled.

Total amounts

Disbursements,
Cost
Cost per Service
transit per item thousand charge
depart- handled. dollars. per item.
ment.

Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis 1
Minneapolis...
Kansas City..
Dallas
San Francisco.

13,482,481
17,975,769
11,727,528
5,901,160
5,688,280
4,031,458
7,532,366
2,648,276
4,386,422
4,559,277
3,717,220
3,046,711

$6,951,310,787
14,051,822,671
7,363,095,829
3,932,056,724
3,403,949,500
1,636,315,075
5,363,610,000
1,206,630,532
1,097,635,030
3,537,781,323
990,202,304
2,059,361,119

$96,132
211,216
105,035
83,492
51,186
51,386
72,886
36,332
44,461
57,330
51,263
68,123

Total...

84,696,968

51,593,770,894

928,842

Cents.
0.71
1.11
.9
1.4
.9
1.27
.97
1.37
1.01
1.26
1.38
2.23
1.1

Cents.
1.39
1.5
1.43
2.1
1.5
3.14
1.36
3.01
4.05
1.62
5.18
3.3

Cents.
0.9
1
1.5
L.5
]L.25
]L.5
]1.5
]L.5
1.5
1.5
1.5
U.5

1.8

1 Exclusive of Government and clearing-house items amounting to $1,172,285 and $1,825,621,615, respectively.
2 Service charge per item was 2 cents until Oct. 15, when it was changed to 1.5 cents.

140




Exhibit G—RECEIPTS AND DISBURSEMENTS OF THE
FEDERAL RESERVE BOARD.
There is here given a statement of receipts and expenditures of
the Federal Reserve Board in 1917. The total expenses of the Board
for the calendar year 1917 are shown on the detailed statement of
commitments to have been $249,302.22. This amount includes a
number of items which have of necessity been estimated.
Under the Federal Reserve Act the Federal Eeserve Board is authorized to make semiannual assessments upon Federal Eeserve
Banks to cover its expenses. The first assessment for this purpose
was made on November 2, 1914.
The funds of the Board are carried in a special account with the
Treasurer of the United States, and transfers are made by the governor of the Board to the credit of the fiscal agent, as necessary.
The accounts of the Board pass through the office of the Auditor for
the State and Other Departments and are given the official examination required b}^ the Government. The term " auditor's settlement"
under " Disbursements" covers settlements made by transfers of
credit authorized and directed by the auditor on the books of the
Treasury Department. The term "commitments," where used, covers
all obligations entered into by the Board for the periods stated.
EECEIPTS.

Unexpended balance Jan. 1, 1917
Assessments, 1917
Bulletin, subscriptions to
Reimbursements
Miscellaneous

$14, 005. 96
237, 776. 82
1, 693. 99
11, 479.10
1,917.32

Total available

$266, 873.19
DISBURSEMENTS.

By fiscal agent
Auditor's settlements

—

Total disbursements
Balances Dec. 31, 1917. with Treasurer of Suited
States to credit of—
Fiscal agent
__
Federal Reserve Board




218,507.75
31, 801. 00
250, 363. 75

4,264.71
12, 239. 73
;1G, 504, 44
266, 873. 19
141

142

ANNUAL REPORT OF THE FEDERAL RESERVE BOABD.
GENERAL STATEMENT.

Total available
$266,873.19
Reimbursable expenditures
$11, 235. 00
Balance to credit, reimbursable account __
500. 71
—
11,735.71
Commitments for general expenses, 1917
Commitments, 1916; paid in 1917

249, 302. 22
4, 000.18

$255,137. 48
253, 302. 40

Unencumbered balance Jan. 1, 1918
Unpaid commitments Dec. 31, 1917
Balance to credit reimbursable account
Unexpended balance




:__„_____

1, 835. 08
14,168. 65
500. 71
16, 504. 44

Detailed statement of

January. February.
Personal services:
Board and its clerks
Secretary's office
Counsel's office
Division of audit and examination
Division of reports and
Division of issue
Messengers
Charwomen
Total
Nonpersonal services:
Transportation and subsistenceBoard and its clerks..
Secretary's office
Division of audit and
examination
Division of reports
and statistics
CoiTnp^l's fffif'c
Messengers
Communication service:
TeleDhone
Telegraph
Postage




March.

April.

May.

expenditures.

June.

July.

August.

September.

. October.

November.

Decem. ber.

Total.

$7,373.31 $7,273.31 $7,343.05 $7,383.31 $7,383.31 $7,347.04 $7,476.65 $7,383.31 $7,343.09 $7,379.18 $7,458.33 $7,458.34 $88,602.23
2,618.33 2,591.67 2,478.89 2,475.00 2,481.67 2,481.67 2,305.83 2,379.17 2,379.17 2,427.50 2,393.33 2,430.84 29,443.07
2,126.66 2,176.67 2,176.67 1,901.66 1,960.00 2,026.67 1,780.82 1,785.00 1,785.01 1,815.83 1,846.67 1,846.68 23,228.34
1,358.33

1,758.33

1,758.34

1,618.33

1,458.33

1,348.34

1,393.33

1,499.71

2,165.19

2,499.99

2,591.66

2,281.68

21,731.56

1,080.00
693.33
395.00
60.00

1,120.00
693.33
395.00
60.00

1,130.00
693.34
395.00
54.00

1,130.00
730.83
395.00
60.00

1,130.00
768.33
395.00
60.00

1,080.00
768.34
407.00
60.00

1,216.00
772.49
455.00
63.78

1,245.50
776.66
515.00
66.00

1,212.50
776.68
515.00
66.00

1,129.59
891.50
507.50
66.00

1,279.75
986.66
493.33
65.27

1,373.69
1,041.68
498.33
66.00

14,127.03
9,593.17
5,366.16
747.05

16,068.31 16,029.29 15,694.13 15,636.64

15,519.06

15,463.90

15,650.35

16,242.64

16,717.09

17,115.00

16,997.24

192,838.61

251.14

73.85

321.03

126.14

2,171.26
215.53

805.57

599.04

1,395.94

603.14

7,006.40

15,704.96

23.05

190.39

90.83

745.20

374.82
25.85

172.60

843.00

136.85

536.19
171.68

201.61

284.62

13.30

18.00
211.23

20.30

1,178.12

60.35
22.90
30.00

40.05
22.90
5.00

5.00
58.62
340.18
25.00

56.65
320.50

75.40
343.42
25.00

5.00
128.26
492.12

188.94
337.40

207.52
525.22
20.00

5.00

5.00
166.53
502.98

169.97
349.28

5.00
174.48
711.61

179.17
734.21

180.00
853.38

180.00
801.05

1,765.58
6,311.35
70.00

Detailed statement of expenditures—Continued.
March.

April.

May.

June.

July.

Printing, binding, etc. o
$3,434.62 $1,535.49 $1,446.27 $2,061.15 $1,500.68 $2,789.93 $1,703.58
3.45
5.00
Contract repairs
40.72
15.75
30.00
30.00
Electricity (light a n d power).
30.00
30.00
30.00
30.00
30.00
15.00
15.00
Steam (heat)
15.00
15.00
36.00
25.00
Other nonpersonal services
9.83
56.65
20.00
149.89
22.10
Supplies:
Stationery
223.94
64.31
124.81
79.76
135.00
110.34
106.64
Periodicals
61.98
17.60
17.00
22.50
52 61
Other
24.99
7.66
14.07
5.20
21.61
53.05
12.00
Equipment:
Furniture and
office
126.50
85.00
79.79
182.05
69.50
223.30
750.22
equipment...0
3.00
1.50
Books
38.22
399.47
9.10
12.00
9.75
Gold settlement fund (includ175.29
125.27
244.40
414.30
235.60
208.20
ing salaries)
240.25
Foreign exchange (including
Rent
Transit (special)
Total
Grand total




453.76

641.14

August.

September.

October.

$1,470.04

$1,996.57

30.00

30.00

46.20

630.47

$1,716.63
24.97
30.00
15.00
103.79

68.53
10.50
21.61

107.80
22.00
53.00

186.16
118.30
105.60

175.00

160.30
2.79

760.78
11.50

1,037.90
12.46

325.65

447.13

177.93

January. February.

November.

December.

$1,374.40 $1,485.55 $22,514.91
102.01
10.12
2.00
360.00
30.00
30.00
105.00
15.00
15.00
63.92
1,236.46
72.61
117.83
16.00
64.61

1,500.12
338.49
451.12

921.24
10.80

71.80

4,468.38
510.59

361.52

387.18

375.00

3,539.79

187.93

188.93

1,806.89
187.93

1,806.89
742.72
1,133.80

5,955.55

56,463.61

67.73

38.90

4,758.17

3,617. 90

4,374. 65

3,940.15

20,463.13

19,686.21

20,403.94

19,634.28

4,592. 77

3,947.33

3,756.63

5,819.06

6,535.61

5,455.82

19,346.61 20,111.83

19,%411.23

19,406.98

22,061.70

23,252.70

22,570.82

3,709.97

Total.

22,952. 79 249,302.22

r

W
O
>

Exhibit H.—EARNINGS AND EXPENSES OF THE FEDERAL
RESERVE BANKS.
Total earnings of the Federal Reserve Banks for the calendar
year 1917 were $15,438,858, compared with $4,955,343 for the calendar year 1916, while total current expenses were $4,235,866, compared with $2,204,344 for the previous year. Current expenses for
the year under review include $2,669,585 of expenses of operation
proper, $1,111,636—the cost, including postage, expressage, insurance, and other expenses incident to the issue and redemption of
Federal Reserve notes and bank notes, $299,823—depreciation of
bank buildings, furniture, and equipment, and $154,824 the excess
of the cost of operation of the transit department over the total of
service charges collected by those Federal Reserve Banks showing
a deficit from operation of this department. The total is exclusive
of expenses of the fiscal agent departments. These expenses are
treated separately, being reimbursed by the United States Treasury Department.
Net earnings of the banks, i. e., the excess of earnings over current expenses, totaled $11,202,992, or at the rate of 18.9 per cent on
an average aggregate paid-in capital for the year of $59,260,000,
compared with 9.8 per cent for the first six months of 1917 and
about 5 per cent for the calendar year 1916. I t is thus seen that
the financial results of operation were especially favorable during
the second half of the year when the discount demands upon the
Federal Reserve Banks in connection with the loan operations of
the Government caused a much larger employment of the banks'
funds than during the earlier portion of the year. Three banks
report net earnings for the year in excess of 20 per cent on their
average paid-in capital; three other banks show net earnings between
15 and 20 per cent, while the remaining six banks show net earnings
between 12 and 15 per cent. To the total net earnings above shown
should be added the net profits carried over from 1916, $649,302,
and miscellaneous adjustments in the profit and loss account amounting to $10,529, making a total of $11,862,823.
Deductions from this total, $1,633,914, comprise the cost of notes
paid for but not yet issued by the banks, the premium on United
States bonds, also special funds set aside to cover depreciation on
United States securities owned by the banks, leaving $10,228,909 as
the net profits on December 31, 1917. Over two-thirds of this
amount, or $6,801,726, represents the amount of dividends paid to
member banks during the year, including certain small adjustments
in the dividend account. The balance of $3,427,183 was dis-




145

146

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

tributed as follows: $1,134,234 was paid by six banks as franchise
tax to the Government; an equal amount was carried by these banks
to surplus, while $1,158,715 was carried to profit and loss by the
other six banks.
Over 45 per cent of the total earnings for the year, as against
20.7 per cent the year before, was from bills discounted; 32 per
cent, as against 31.5 per cent, from acceptances bought in the open
market; 15.3 per cent, as against 22.3 per cent, from United States
securities; about 3 per cent came from the sale of transfer drafts;
and the remainder from municipal warrants, profits on United
States securities sold, penalties for deficient reserves, commissions,
and sundry smaller profits.
Expenses of operation of the banks proper, exclusive of their
transit and fiscal agent departments, were $2,669,585, compared with
$1,684,501 for the calendar year 1916. Of the total, about 28 per
cent went as compensation to the clerical staff and 23.2 per cent as
salaries to bank officers. Less than 9 per cent of the total operating
expense is represented by contributions of the banks for the support
of the Federal Reserve Board. Rent paid by all banks, except Dallas,
constitutes less than 7 per cent of the total expenses of operation,
while the cost of printing and stationery accounts for about 5.4 per
cent of these expenses. Other large items of operating expense, in
the order of their importance, were postage, insurance, directors'
fees and per diem allowances, compensation to special officers and
watchmen, and salaries not specified.
Current expenses are exclusive of $183,764 expended on furniture,
fixtures, and vault account. During the year the banks wrote off
this account a total of $305,421. At the end of the year the furniture
and fixtures account was completely charged off by a number of
banks, leaving a balance of $133,396 at the opening of 1918, representing the combined furniture, fixtures, and vault account.
The Richmond bank owns a banking house for its branch in Baltimore and ground upon which to build in Richmond. Dallas owns a
banking house, while Atlanta and San Francisco own ground on
which they propose to erect banking buildings for their own use.
The total amount reported at the close of the year by these four banks
and Philadelphia under the head of " Bank premises" is $707,611,
compared with $368,222 at the beginning of the year.
Disbursements of the transit departments, not included in the
banks' operating expenses, totaled $844,305. As an offset against
these disbursements the banks received $704,670 of service charges for
handling items received for collection. Aggregate deficits of $154,824
reported by 7 banks were included among the current expenses of
the banks, while excesses of service charges appear among the earnings of 5 banks.



Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the calendar year 1917.
EARNINGS.
PhilaBoston. New York. delphia.
Bills discounted and bought:
Bills discounted—Members and
Federal Reserve Banks
$571,117 $2,455,533
Acceptances bought in market.. 502,397 1,843,325
Investments:
United States securities
94,785
378,668
Municipal warrants
5,203
66,470
Profits realized on United States
11,102
14,335
securities...
Transfers—Net earnings
108
Deficient reserve penalties, includ18,565
ing interest
6,105
38,538
6,938
Commissions received
Net service charges received in excess of transit department disbursements
32,857
Sundry profits
253
Total earnings




1,198,008

4,848,291

$370,359
474,653

Cleveland.

Richmond.

Atlanta. Chicago.

$375,169 $418,629 $231,636
496,711 201,008 102,311

$938,543
394,340

St.
Louis.

Minneapolis.

Kansas
City.

Dallas.

$358,239 $311,376 $438,831 $209,065
170,233 148,531 171,112 138,512

San
Francisco.

Total.

$292,982 $6,971,470
308,596 4,951,729

123,875
18,170

317,924
48,132

96,143
560

140,820
3,629

443,958
30,880

110,301
13,691

97,936
4,479

256,792
5,137

159,432
6,833

147,355
11,935

2,367,989
215,119

13,768
339

24,261
14,022

16,712

25,569
17,134

25,196
170,634

57,920

45,983

45,570

4,008
34,027

11,250
64,363

146,201
450,100

6,878

17,844

13,527

12,223

14,968

4,468

37,396

12,968

18,222

194,526
45,476

7,917

3,181

4,387
1,208

7,196

1,564
4,940

2,726
8,696

6,129
9,436

1.112

383
4,202

52

15,189
81,050

1,015,959

1,297,244

770,009

541,822

2,022,278

736,774

628,338

955,950

569,430

854,755

15,438,858

s

31,362

W
ft
CO

w
fed

W

o

Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the calendar year 1917—Continued.
00

CURRENT E X P E N S E S .

Boston.

Expenses of operation:
Assessments account expenses
Federal Reserve Board
Federal Advisory Council (fees
and traveling expenses)
Governors' conferences (including traveling expenses)
Federal Reserve agents' conferences (including traveling
expenses)
Salaries—
Bank officers
Clerical staff
Special officers and watchmen
Allother
Directors' fees
Per diem allowance
Traveling expenses
Officers' and clerks' traveling
expenses
Legal fees
Rent
Taxes and fire insurance
Telephone
Telegraph




PhilaNew York. delphia.

Cleveland.

Richmond.

Atlanta.

Chicago.

St.
Louis.

Minneapolis.

Kansas
City.

Dallas.

San
Francisco.

Total.

$16,560.

$237,795

$21,226

$50,252

$22,057

$25,783

$14,256

$10,154

$30,021

$12,733

$10,196

$13,118

$11,439

445

650

350

653

432

479

827

405

150

370

150

150

5,061

539

552

174

251

337

300

432

711

625

665

398

944

5,928

208

215

996

37,782

41,051

56,657

620,392

38,773

39,940

56,891

746,827

110

167

243

113

43,550
49,039

129,247
228,485

46,206
42,615

46,678

33,200

36,471

63,761

48,688

44,861

35,303

37,893

85,865

55,236

37,101
31,926

604

11,017
29,534
12,090
950
1,344

8,311

4,357
2,541
2,120
1,320
1,571

700

3,424

10,289

2,127

1,667

1,419

2,762

434

47,111

5,138

2,043

816

1,062

2,981

160

46,157

2,050

5,450

3,740

3,975

1,575

2,372

46,230

590

1,640

940

2,540

815

465

961

1,843

1,506

5,313

1,132

1,219

361

1,203
775

1,139

3,825

1,500

2,400

1,323

15,948

8,850

13,669

178,623

4,060
1,010
711
921
2,400
15,246
430
4,452
565

2,605

3,590
1,080
1,361

1,882
3,020
1,230
1,806

2,188
2,540
2,471

15,120
20,019

163

954

1,067

1,227

1,700

2,000

500

600

2,750

55,551

9,070

16,625

5,807

12,153

22,915

13,077

5,660

2,629

1,211

1,184

104

5,645

6,464
3,216

2,803

685

535

1,906

711

1,031

810

870

2,313

24,274

657

843

815

769

699

565

585

2,371

12,229

13
325

1,694
817

74

15,353

5,507
3,036
Insurance and premiums on
fidelity bonds
Light, heat, and power
Printing and stationery
Repairs and alterations
All other expenses
Total expenses of operation...

17,374
12,907

1,470
U86

7,940
4,692

2,647
1,651
8,004
1,289
26,191

4,994

4,700

7,416
725
7,544

1,426

5,210

6,826

14,362

9,477

6,552

4,116

2,483

9,510

2,906

5,030

2,202

2,032

2,070

175

5,876
2,397

2,101

820
9,723

7,063

18,002

4,926

28

528

386

5,404

4,683

15,812

37,578

704,278

163,955

194,941

141,095

146,748

343,765

70,340

91,256

54,808

15,010

1,887

3,069

3,626

3,782

193,531

11,296

9,183

30,232

25,726
28,435

233

89,925
61,112
43,197

1,871

3,851

3,437

1,185

35,067
1,039
100,830

7,311

3,166
8,424

3,203

1,234

1,468

464

10,311

7,314

12,180

18,407

143,016

287

2,473

1,506

29,160

%

11,490

7,475
1,267
4,602

17,388

5,029

10,966

249,156

5

318,043

177,938

125,101

155,337

145,220

203,396

2,669,585

159,825

49,363

42,381

48,679

30,911

34,998

1,054,183

^

2,314

1,229

1,355

20,886

8,077

57,453

^

41,364

38,353

28,142

261,388
38,435

§
^

33,098

154,824

•

Cost of Federal Reserve notes issued, including expressage, insurance, etc
Miscellaneous charges account note
issues
Depreciation of furniture and equipment
Depreciation of bank premises
Disbursements of transit department in excess of net service
charges received
Total current expenses
Net earnings for year 1917
Per cent of average paid-in capital..




68,954

14,974

8,256

66,283

22,120

14,594

285,715
912,293
17.4

1,129,336
3,718,955
28.2

262,084

334,092

257,785

753,875
14.1

963,152
14.9

512,224
14.8

8,177

32,225

2,277
214,510
327,312
13.2

32,325
7,500

2,500

8,196
512,407
1,509,871
20.6

234,618
502,156
15.9

210,201
418,137
16.8

271,451
684,499
21.8

215,956
353,474
12.9

4,235,866
11,202,992
13.7
18.9

307,711
547,044

r

I
gj

J^
|
W

CO

Profit and loss account of each Federal Reserve Bank and of the system as a whole for the calendar year 1917.

Boston.

Earnings
Current expenses
Net earnings for year
Profit and loss account Jan. 1,1917
Miscellaneous adjustments in profit
and loss d urine vear
Total
Less:
Cost of Federal Reserve currency
not yet issued to bank (including expressage, insurance, etc.)..
Premium on United States bonds.
Reserved for depreciation on
United States bonds

New
York.

Philadelphia.

Cleveland.

Richmond.

Atlanta. Chicago.

St.
Louis,

Minneapolis.

Kansas
City.

Dallas. San Francisco.

Total.

$1,198,008 $4,848,291 $1,015,959 $1,297,244 $770,009 $541,822 $2,022,278 $736,774 $628,338 $955,950 $569,430 $854,755 $15,438,858
834,092 257,785 214,510 512,407 234,618 210,201 271,451 215,956 307,711 4,235,866
285,715 1,129,336
262,084
912,293 3,718,955
11,597
163,064

753,875
89,966

963,152
94,797

512,224
11,664

327,312 1,509,871
10,120
61,978

923,890 3,892,673

33,667

843,841 1,057,949

523,888

337,432 1,573,976

14,320

445,248
209,470

138,267

50,000

205,880

24,909

514,904

684,499
91,506

-2,127

i 125

460,552

775,880

395,377

42,508
75,462

2

2,127

10,654

11,202,992
649,302

418,137
44,542

502,156
12,748

1,407
91,000

609,316

91,000

1,633,914

43,001
159,515

353,474
41,903

10,529

3 21. fi57

77,603

547,044
15,417

7

562,461

11,862,823

578,744
445,854

209,470

50,000

21,657

117,970

1,407

Net profits Dec. 31,1917

751,956 3,241,545

843,841

848,479

473,888

298,203 1,293,857

514,904

438,895

657,910

393,970

471,461

10,228,909

Dividends paid
Dividends accrued and paid on surrendered stock including miscellaneous adjustments in dividend
account

597,829

1,941,642

622,150

715,614

240,944

215,972

860,058

284,566

363,876

360,236

187,744

394,490

6,785,121

3,927

1,177

1,453

554

2,231

2,201

19

4,267

490

286

16,605

601,756

1,942,819

623,603

716,168

218,203

862,259

363,895

364,503

188,234

394,776

6,801,726

Total deductions

Total dividends paid during year




171,934

651,128

240,944

39,229

280,119

284,566

Profit and loss Pec. 31,1917, after payment of dividends
Distribution of profit and loss:
Paid to Government account
franchise tax
Carried to surplus account
Profit and loss Jan. 1 1918
Dividends paid to

150,200

1,298,726

75,100
75,100

649,363
649,363

12-31-17

12-31-17

220,238
6-30-17

132,311

132,311
6-30-17

232,944

80,000

431,598

116,472
116,472

220,238

40,000
40,000

215,799
215,799

12-31-17

12-31-17

12-31-17

230,338

75,000

293,407

205,736

76,685

37,500
37,500
230,338
12-31-16

12-31-17

293,407
6-30-17

205,736
6-30-17

76,685
12-31-16

1 Credit.
2
Amount paid to the Chicago Federal Reserve Bank in adjustments of dividends due to banks transferred from the Minneapolis to the Chicago district.
8
Includes $6,500 for abrasion on gold coin.




3,427,183

1,134,234
1,134,234
1,158,715

o
w
H
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o
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Transit department disbursements and net service charges of each Federal Reserve Bank and of the system as a whole for the calendar year 1917.
DISBURSEMENTS.
Boston.

Expenses of operation:
SalariesBank officers
Clerical staff
Allother
Officers' and clerks traveling expenses.
Legal fees
Rent
Taxes and fire insurance
Telephone
Telegraph
Postage
Expressage
Insurance and premiums on fidelity
bonds
Light, heat, and power
Printing and stationery
Repairs and alterations
All other expenses, not specified
Total expenses of operation
Depreciation ol furniture and equipment
Total disbursements




NewYork.

Philadelphia.

$51,854

$58,871

$55,134

631

213

6,590

1,630
35

7,041
65
53
61
19,157
8,027

1,585
5,350
107
1,938

57
345
22,294
28,850

10,942
17,746

Cleveland.

Richmond.

Atlanta.

Chicago. St. Louis. Minneapolis.

$3,563
39,950
228
201

$3,000
29,254

$469
20,279

$35,042

1,200

185
2,750

37
5,013

17,939
11,756

2,232
204
55
32
12,626
66

1
10,659
480

36
15
8,278
11

288
78
8,578
466

247
104
7,799

1,391
235
3,780
118
4,652

138
5,790
420
2,819

747
2,271

148
2,294

130
600
6,157

5,033

48
4,449

240
5,118
19
2,106

$725
15,868
52

Kansas
City.

Dallas. San Francisco.

$2,169
27,292
655

$28,631

3,000
60
48

1,600

8,951

17, $44

656

726

1,445

$23,799

525
304
3,133
152
544

815
240
4,924
52
1,714

4,121

26

$28,922

1,098
750
28
24
127
9,353
2,301

Total.

$9,926
414,896
941
1,045
1,320
33,251
392

B
3
8
H

834

312
9,769
14,262

1,075
152,947
67,188

5,077

6,052
9,481
53,858
3,359
43,707

356
3,200

96,132

147,206

96,883
4,818

68,812
15,754

48,498
2,688

39,498
10,746

60,886

34,692
1,640

41,361
3,100

52,465
2,441

49,694
2,846

64,145

800,272
44,033

96,132

147,206

101,701

84,566

51,186

50,244

60,886

36,332

44,461

54,906

52,540

64,145

844,305

§
fe

SERVICE CHARGES.
Member banks
Other Federal Reserve Banks

,

Total service charges received
,
Service charges paid other Federal Reserve Banks
,
Service charges, net
Transit department disbursements in excess of net service charges received

$86,670 $128,271
17,762
12,139

$93,507
16,048

$60:964
26,017

$43,028
22,592

$30,042 $110,243
25,091
17,529

$48,994
22,299

$32,821
20,542

$15,714
34,603

$28,945
25,445

$13,864
20,001

$693,063
260,068

98,809

146,033

109,555

86,981

65,620

55,133

127,772

71,293

53,363

50,317

54,390

33,865

953,131

10,933
87,876

65,110
80,923

29,974
79,581

17,009
69,972

10,047
55,573

7,166
47,967

65,322
62,450

32,235
39,058

2,773
50,590

3,607
46,710

1,467
52,923

2,818
31,047

248,461
704,670

8,256

66,283

22,120

14,594

!4,387

2,277

i 1,564

1

16,129

8,196

1383

33,098

139,635

2,726

g

i Excess service charges.
Fiscal agent department disbursements of each Federal Reserve Bank, amounts reimbursed, and balances reimbursable by the United States Treasury, to
the end of the calendar year 1917.

Boston.

NewYork.

Philadelphia.

Cleveland.

Total disbursements to Dec. 31, 1917
$294,499 $900,040 $186,008 $237,581
Amounts reimbursed by United States
Treasury to Dec 31 1917
151,288 539,690
85,975
98,333
Balances reimbursable




143,211

360,350

100,033

139,248

Richmond.
$66,921

Atlanta. Chicago. St. Louis. Minneapolis.
$70,380 $458,278 $191,516

Kansas
City.

$106,338 $114,172

Dallas. San Francisco.

Total.

$92,798 $376,219 $3,094,750

23,700

24,686

170,850

66,667

52,211

27,722

27,793

128,615

1,397,530

43,221

45,694

287,428

124,849

54,127

86,450

65,005

247,604

1,697,220

i
w
o
J

Cost of furniture and equipment, including vaults, also bank premises.
New
York.

Philadelphia.

Cleveland.

Richmond.

$15,410

Boston.

$20,164

$12,000

Atlanta. Chicago. St. Louis. Minneapolis.
$12,282 i $28,109

$14,974
14,974

18,771
34,181

25,822
45,986

25,479
37,479

6 641
18,923

Depreciation charged during calendar
year ending Dec. 31,1917

14,974

8,600

45,986

28,414

18,923

9,065
300,000

140,875

'.




. . .
.r.r

25,581
10,000

Dallas. San Francisco.

Total.

$28,6£9

$59,274

$41,961

$37,164

4,116
32,225

23,538
52,227

14,691
73,965

12,583
54,544

9,007
46,171

$28,142
28,142

183,764
438,817

32,225

7,728

44,464

40,794

35,171

28,142

305,421

44,499

Balance as reported Jan. 1,1917
Additional purchases during calendar
year ending Dec. 31,1917
Total
. .

Balance Jan. 1 1918
"RjvnV promises .
.......

Kansas
City.

29,501

13,750

11,000
136,736

120,000

133,396
707,611

i $255,053

§

i Refund of $195.50 deducted.

w
o

Cost of unissued Federal Reserve notes.
Boston.

New
York.

Balance as reported Jan. 1,1917
Additional cost during calendar year ending Dec. 31,1917

$29,230 $235,599
73,391

Total
Cost of Federal Reserve notes charged to
current expenses during calendar year
ending Dec. 31,1917

$27,708 $39,544

St. Louis.

Minneapolis.

Kansas
City.

Dallas. San Francisco.

$9,355

$20,315

$67,958

$19,763

$16,295

i $28,599 $8,940

553,414

43,144 51,712 49,548

49,401

134,868

45,767

39,001

62,588 32,132

102,621

789,013

70,852 91,256

58,903

69,716

202,826

65,530

55,296

91,187

102,621

789,013

70,340 91,256

58,903

69,128

202,826

49,363
16,167

512

Balance Jan. 1,1918




Phila- Cleve- Richdelphia. land. mond. Atlanta. Chicago.

1

588

Total.

i $503,306
$34,998

1,169,964

41,072

34,998

1,673,270

42,381

91,187 30,911

34,998

1,632,927

o

12,915

10,161

40,343

O

Includes cost of Federal Reserve bank notes amounting to $983.82.
»=1
fel'

i
w
o
>

Or

Earnings and current expenses, by months, for the calendar year 1917, of each Federal Reserve Bank and of the system as a whole.

Or

EARNINGS.

Boston.

January
February..
March
April
May
June
July
August
September..
October
November.
December..
Total
Net service charges in excess of
transit department disbursements
Total earnings.




153,987
43,978
45,168
53,134
53,867
89,452
104,597
110,323
108,553
126,746
161,013
247,190

New
York.

Philadelphia.

Cleveland.

Richmond.

Atlanta.

Chicago. St. Louis.

Minneapolis.

Kansas
City.

$120,886
109,043
91,582
107,644
156,521
437,386
389,244
233,893
315,977
672,011
1,033,209
1,180,895

$48,394
45,091
44,794
47,812
72,047
78,704
87,023
90,314
95,853
85,419
122,933
197,575

$65,114
52,713
51,150
54,016
66,220
73,082
78,742
107,090
117,730
131,306
193, 726
306,265

$44,597
35,136
37,496
44,603
55,669
58,850
66,862
65,074
68,800
69,299
85,379
133,557

$47,800
26,584
21,128
23,870
28,271
28,873
26,861
33,380
44,330
73,964
85,520
101,241

$31,400
31,283
33,052
35,947
43,806
47,167
53,281
55,826
66,900
91,293
96,824
147,269

$32,121

$29,731

68,040
63,591
68,272
89,149
136,407
192,247
160,522
170,449
247,193
336,516
399,360

31,310

31,311

31,094

34,889

34,082

34,955

43,184

42,511

39,952

72,814

49,422

88,498

60,826

97,756

70,234

92,918

1,198,008 4,848,291

1,015,959

1,297,244

765,622

541,822

2,020,714

4.387

770,009

1,198,008 4, 848,291

1,015,959

1,297,244

Dallas.

San
Francisco.

Total.

58,689

106,034

83,836

166,516

87,459

158,017

$20,826
24,678
22,943
28,886
34,747
33,119
36,581
45,805
53,031
79,296
88,510
100,625

734,048

622,209

955,950

569,047

854, 755 15,423,669

1,564

2,726

6,129

383

15,189

541,822 2,022,278

736,774

628,338

955,950

569,430

$49,982
34,413
31,090
38,725
52,476
59,645
62,530
75,312
80,282
91,571
119,352
159,377

854,755

$633,806
533,880
507,977
571,946
738,468
1,155,451
1,235,888
1,136,121
1,285,057
1,832,911
2,573,334
3,218,830

s

15,438,858

o

CURRENT EXPENSES.
January
February
March
April
May
June
July
August
September
O ctober
November
December

111,736
14,088
14,908
15,667
14,656
18,226
20,785
22,077
24,428
29,841
30,815
60,232

$53,558
61,972
66,284
61,834
58,375
65,532
73,825
90,565
96,832
136,796
157,874
139,606

$11,354
15,548
15,340
15,703
15,145
19,226
13,530
18,098
23, 618
28,240
25,456
38,706

$12,104
15,153
15,207
18 178
20,215
23,006
20,731
17,048
24,934
28,244
33,251
91,427

$10,395
8,147
8,^72
8,779
10,483
77,994
11,867
10,567
12,425
11,337
16,171
70,948

$10,972
11,424
10,882
10,631
10,566
9,717
12,753
13,232
25,957
29,502
23,787
'42,810

$18,968
23,194
25,960
31,639
34,175
30,258
60,844
36,949
43,408
51,845
59,441
95,726

$12,428
12,183
11,391
11,677
15,228
14,495
16,194
15,961
19,883
33,690
34,034
37,454

$7,705
9,892
8,995
11,889
11,166
11,288
13,378
12,608
18,533
24,655
17,977
62,115

$11,040
11,085
12,537
12,374
13,078
11,789
15,934
18,415
26,535
32,187
31,980
66,301

$10,022
9,271
9,407
9,994
8,988
25,627
10,921
13,579
24,952
23,017
17,810
52,368

$11,244
11,416
10,984
11,076
11,262
33,481
17,132
20,259
20,612
26,830
24,994
75,323

$181,526
203,373
210,567
219,441
223,337
340,639
287,894
289,358
362,117
456,184
473,590
833,016

Total
Transit department disbursements
in excess of net service charges received

277,459 1,063,053

239,964

319,498

257,785

212,233

512,407

234,618

210,201

263,255

215,956

274,613

4,081,042

66,283

22,120

14,594

33,098

154,824

Total current expenses

285,715 1,129,336

262,084

334,092

307,711

4,235,866

2,277
257,785

214,510

8,196
512,407

234,618

210,201

271,451

215,956

NOTE.—Increases in current expenses shown for the months of June and December are due to the inclusion of special charges account depreciation of furniture and equipment,
also cost of Federal Reserve currency during these two months.




3

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C7I

Exhibit I.—STATE BANKS AND TRUST COMPANIES ADMITTED TO MEMBERSHIP.
The following list shows the State banks and trust companies
which have been admitted to membership in the Federal Reserve
system up to and including December 31, 1917:
Capital.
Alabama:
Birmingham—American Trust & Savings Bank.
Eufaula—Bank of Eufaula
Marion—Marion Central Bank
Montgomery—Sullivan Bank <fc Trust Co
Total

Surplus.

$500,000
100,000
50,000
250,000

$250,000
14,000
100,000
25,750

Total resources.

$5,836,700
378,828
497,661
605,582

900,000

389,750

7,318,771

Colorado: Denver—International Trust Co

500,000

500,000

13,803,659

Connecticut:
Bridgeport—Bridgeport Trust Co

500,000
650,000

300,000
500,000

7,866,545
4,574,303

New Haven—Union & New Haven Trust Co
Total
Delaware: Wilmington—Wilmington Trust Co

1,150,000

800,000

12,440,848

1,000,000

500,000

13,141,081

1,000,000

100,000

4,289,237

100,000
250,000

100,000
500,000

1,217,318
3,5,50,995

350,000

600,000

4,768,313

District of Columbia: Washington—Continental Trust Co.
Florida:
Deland—Volusia County Bank
Total.
Tampa—Citizens Bank & Trust Co
Georgia:
Athens—American State Bank
AtlantaCentral Bank & Trust Corporation
Trust Company of Georgia
Brunswick—Brunswick Bank & Trust Co.
SavannahCitizens & Southern Bank
Savannah Bank & Trust Co
West Point Citizens Bank
Total.
Idaho:
Genesee—Genesee Exchange Bank.
Kimberly—Bank of Kimberly
Total.
Illinois:
ChicagoAustin State Bank
Central Trust Co. of Illinois.
Chicago Savings Bank & Trust Co.
First Trust & Savings Bank
Foreman Bros. Banking Co
Harris Trust & Savings Bank
Hyde Park State Bank
Kaspar State Bank
Merchants Loan & Trust Co
Noel State Bank
Standard Trust & Savings Bank...
State Bank of Chicago
Union Trust Co
United State Bank of Chicago

158




100,000

20,000

538,635

1,000,000
1,000,000
100,000

300,000
1,000,000
72,000

9,620,109
3,893,161
1,049,176

1,000,000
630,000
50,000

1,000,000
570,000

18,537,851
8,415,862
172,477

3,880,000

2,962,000

42,227,271

25,000
35,000

12,500
10,250

482,091
389,592

60,000

22,750

871,683

200,000
6,000,000
1,000,000
5,000,000
1,500,000
2,000,000
200,000
500,000
3,000,000
300,000
1,000,000
1,500,000
1,500,000
200,000

60,000
1,000,000
200,000
5,000,000
500,000
2,000,000
50,000
300,000
8,000.000
75,000
500,000
3,000,000
1,500,000
30,000

2,668,743
54,074,035
12,733,891
84,207,394
18,141,352
33,570,255
1,840,530
6,476,754
109,517,884
2,428,746
9,980,043
38,004,507
37,348,934
869,220

ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD.
Capital.

Illinois—Continued.
Cicero Kirohman State Bank
Effingham Effingham State Bank
Elmhurst—Elmhurst State Bank
..
Evanston— State Bank of Evanston
Joliet—
Commercial Trust & Savings Bank..
Joliet Trust & Savings Bank
Kewanee—Union State Savings Bank & Trust Co
Martinsville—Martinsville State Bank
Oak Park Suburban Trust & Savings Bank
Quincy State Savings Loan & Trust Co

Surplus.

159
Total resources.

$100,000
50,000
60,000
150,000

$25,000
10,000
25,000
200,000

$613,746
721,719
'703,766
4,142,457

100,000
100,000
100,000
50,000
100,000
1,000,000

5,000
25,000
25,000
17,000
10,000

569,684
766,311
1,170,562
388,031
379,251
8,092,397

25,710,000

22,557,000

429,410,312

100,000
70,000
25,000

50,000
35,000
750

2,484,247
549,592
194,868

195,000

85,750

3,228,707

50,000
50,000
300,000
500,000
25,000
100,000
100,000
100,000
50,000
50,000

10,000
5,000
300,000
100,000
11,000
14,000
30,000
5,000
8,000

672,810
919,170
5,179,745
7,436,044
383,807
1,117,161
1,205,090
277,320
320,203
264,041

1,325,000

483,000

17,775,391

30,000
100,000
100,000
200,000

15,000
26,000
50,000
9,000

291,985
748,859
1,143,410
1,521,337

Total.
Kentucky:
Louisville—German Insurance Bank
Maysville—First Standard Bank & Trust Co
Mount Sterling—Exchange Bank of Kentucky

430,000

100,000

3,705,591

250,000
175,000
50,000

500,000
60,000
25,000

7,307,484
1,418,794
434,572

Total.- -.
Louisiana:
Gretna—Jefferson Trust & Savings Bank
Iota—Bank of Iota
New OrleansCanal Bank & Trust Co
Hibernia Bank & Trust Co. Interstate Trust & Banking Co
Metropolitan Bank..
Total.
.
Maryland:
Baltimore—
Baltimore Commercial Bank
Baltimore Trust Co
Maryland Trust Co
Total

475,000

585,000

9,160,850

30,000
25,000

20,000

402,332
114,204

2,000,000
1,500,000
750,000
400,000

500,000
2,000,000
500,000
200,000

21,210,372
25,881,516
9,171,943
4,077,889

4,705,000

3,220,000

60,858,256

500,000
1,000,000
1,000,000

100,000
2,000,000

2,668.945
15,990,745
8,974,128

2,500,000

2,100,000

27,633,818

1,000,000
1,000,000
1,500,000
300,000
6,000,000
200,000
500,000
400,000
200,000
100,000
1,250,000

2,000,000
500,000
1,500,000
300,000
7,000,000
200,000
250,000
400,000
25,000
500,000

25,578,848
24,001,520
23,933,840
5,787,080
150,784,124
2,893,283
4,935,072
• 4,889,053
2,563,580
731,236
24,123,410

12,450,000

12,675,000

270,221,046

Total.
Indiana:
Elkhart—St. Joseph Valley Bank
Kentland Discount & Deposit State Bank
Paoli Paoli State Bank
Total
Iowa:
Brighton—Brighton State Bank
Cedar Falls—Security Trust & Savings Bank
Clinton—Peoples Trust & Savings Bank
Des Moines—Iowa Loan & Trust Co
Gilman—Citizens Savings Bank
Mason City—Commercial Savings Bank
Ottumwa—Ottumwa Savings Bank
Sioux City—Bankers Loan & Trust Co
Sutherland First Savings Bank
Vail—Farmers State Bank
Total.
Kansas:
Fairview—Fairview State Bank
Fort Scott Fort Scott State Bank
Hiawatha—Morrill & Janes Bank
Wichita—Southwest State Bank

Massachusetts:
BostonCommonwealth Trust Co
International Trust Co
Metropolitan Trust Co
Old Colony* Trust Co...
Cambridge—Charles River Trust Co
Fitch burg—Fitchburg Bank & Trust Co
Newton—Newton Trust Co
Norwood—Norwood Trust Co
Winchester—Winchester Trust Co
Worcester—Worcester Bank & Trust Co
Total



...

160

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Capital.

Michigan:
Albion—Commercial & Savings Bank
Charlotte—Eaton County Savings Bank
DetroitFirst State Bank
Peninsular State Bank
Peoples State Bank
The Dime Savings Bank
Wayne County & Home Savings Bank
Detroit Savings Bank
Central Savings Bank
American State Bank
FlintCitizens Commercial & Savings Bank
Union Trust & Savings Bank
Industrial Savings Bank
Fremont—Old State Bank
Gladstone—State Savings Bank
Grand Haven—Grand Haven State Bank
Grand RapidsGrand Rapids Savings Bank
Kent State Bank
Hart—Oceana County Savings Bank
Highland Park—Highland Park State Bank
Hudson—Boies State Savings Bank
JacksonCentral State Bank
Union Bank of Jackson
Lansing—Lansing State Savings Bank
Lapeer—Lapeer Savings Bank
Monroe—B. Dansard & Sons' State Bank
Mount Pleasant—Exchange Savings Bank
Niles—Niles City Bank
Petersburg—H. C. McLachlin & Co. State Bank.
Port Huron—St. Clair County Savings Bank
Rochester—Rochester Savings Bank
Romeo—Romeo Savings Bank
Saugatuck—Fruit Growers State Bank
Sauft Ste. Marie—Sault Savings Bank
St. Clair—Commercial & Savings Bank

Surplus.

Total resources.

$75,000
100,000

$40,000
20,000

$798,485
925,622

500,000
,500,000
,500,000
,000,000
,000,000
750,000
500,000
500,000

150,000
1,000,000
2,500,000
1,000,000
3,000,000
750,000
100,000
185,130

8,275,489
27,270,333
71,761,759
32,769,194
53,681,743
19,524,470
11,962,743
7,243,617

150,000
100,000
250,000
50,000
50,000
75,000

175,000
135,000
250,000
25,000
15,000
50,000

3,438,805
3,848,355
4,307,935
875,831
571,986
1,662,949

400,000
500,000
40,000
1,000,000
75,000

350,000
500,000
13,000
400,000
25,000

8,479,169
9,419,740
427,901
20,976,678
734,295

100,000
400,000
150,000
50,000
100,000
50,000
100,000
25,000
100,000
50,000
50,000
50,000
100,000
50,000

26,000
100,000
100,000
10,000
20,000
30,000
20,000
5,000
50,000
10,000
30,000
10,000
35,000
10,000

1,062,781
4,388,130
2,632,821
545,282
1,627,265
791,176
699,175
362,541
1,319,436
556,346
1,081,181
476,786
1,140,382
746,874

Total.
Minnesota:
MinneapolisBankers Trust & Savings Bank...
German American Bank
St. Anthony Falls Bank
St. Paul—Peoples Bank
Spring Valley—Farmers State Bank...
Winona—Merchants Bank of Winona.

15,490,000

11,139,130

306,387,276

1,000,000
200,000
300,000
300,000
25,000
100,000

200,000
200,000
60,000
50,000
5,000
50,000

2,197,403
4,689,159
3,763,0G2
2,280,204
149,092
2,581,970

Total.
Mississippi: Summit—Union Bank of Pike.
Missouri:
Kansas CityCommerce Trust Co
Fidelity Trust Co
St. LouisFranklin Bank
German American
German Savings Institution
International Bank of
Lafayette South Side Bank
Mercantile Trust Co
Mississippi Valley Trust Co
St. Louis Union Bank

1,925,000

565,000

15,660,800

25,000

4,000

165,516

000,000
000,000

750,000
1,000,000

32,897,159
14,461,776

600,000
000,000
500,000
500,000
800,000
000.000
000,000
500,000

700,000
700,000
1,000,000
500,000
400,000
6,500,000
3,500,000
2,500,000

8,961,674
9,239,685
19,261,222
6,981,718
12,604,870
40,732,458
30,414,523
44,389,921

Total.
Montana:
Helena—Conrad Trust & Savings Bank
Hingham—Hingham State Bank
Opheim—First State Bank

14,900,000

17,550,000

219,945,006

200,000
35,000
25,000
100,000

80,000
5,000
5,000

3,042,678
335,296
229,183
748,601

360,000

90,000

4,355,758

Sidney—Yellowstone Valley Bank & Trust Co.
Total




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Capital.
Nebraska:
Lewellen—Bank of Lewellen.
Pender—Ponder State Bank..
Total.
New Jersey:
Bloomfield—Bloomfleld Trust Co
Camden—Camden Safe Deposit & Trust Co.
Montclair—Bank of Montclair
Passaic—Passaic Trust & Safe Deposit Co...
Plainfield—Plainfield Trust Co
Rah way—Rahway Trust Co
Westfield—Peoples Bank & Trust Co
Total.
New York:
Batavia—The Bank of Genesee
BrooklynBrooklyn Trust Co
Franklin Trust Co
Manufacturers Trust Co
Peoples Trust Co
BuffaloBuffalo Trust Co
Citizens Commercial Trust Co
New YorkBankers Trust Co
Bank of America
Broadway Trust Co
Central Trust Co
Columbia Trust Co
Corn Exchange Bank
Equitable Trust Co
Fidelity Trust Co
German American Bank
Germania Bank of the City of
Guaranty Trust Co
Manhattan Co
Mercantile Trust & Deposit Co
Metropolitan Bank
Metropolitan Trust Co
New York Trust Co
Pacific Bank
Scandinavian Trust Co
Union Trust Co
U. S. Mortgage & Trust Co
W. R. Grace & Co.'s Bank
United States Trust Co
Ogdensburgh—St. Lawrence Trust Co
Utica—
Citizens Trust Co
Oneida County Trust Co
Utica Trust & Deposit Co
Watertown—Northern New York Trust Co
Oneida—Madison County Trust & Deposit Co..
Rome—Rome Trust Co
Elmira—Chemung Canal Trust Co
Syracuse-^City Bank
Gloversville—Trust Co. of Fulton County
Total.
North Dakota:
Enderlin—Enderlin State Bank..,
Hettinger—Hettinger State Bank.
Willliston—Bank of WilUston
Total
Ohio:
Cleveland—
Citizens Savings & Trust Co
Cleveland Trust Co
Guardian Savings & Trust Co
Columbus—Citizens Trust & Savings Bank...
Hillsboro—Hillsboro Bank & Savings Co
Massillon—Ohio Banking & Trust Co
Newark—Newark Trust Co
Steubenville—Steubenville Bank & Trust Co.
Toledo—Guardian Trust & Savings Bank
Youngstown—City Trust <fe Savings Bank
Total.



Surplus.

161
Total resources.

$25,000
50,000

$10,000
3,000

$250,820
403,036

75,000

13,000

653,856

200,000
500,000
100,000
200,000
300,000
100,000
100,000

100,000
800,000
80,000
100,000
200,000
25,000
80,000

3,213,787
10,352,726
2,799,827
7,130,181
8,749,434
398,277
2,005,718

1,500,000

1,385,000

34,649,950

100,000

100,000

1,151,907

1,500,000
1,000,000
1,000,000
1,000,000

2,898,481
1,000,000
300,000
1,000,000

40,270,926
24,823,842
15,031,812
29,443,301

500,000
1,250,000

500,000
1,250,000

9,621,217
18,196,063

11,250,000
1,500,000
1,500,000
5,000,000
5,000,000
3,500,000
6,000,000
1,000,000
750,000
400,000
25,000,000
2,050,000
1,000,000
2,000,000
2,000,000
3,000,000
500,000
1,000,000
3,000,000
2,000,000
500,000
2,000,000
100,000

11,250,000
6,000,000
750,000
15,000,000
5,000,000
6,991,165
10,500,000
1,000,000
250,000
600,000
25,000,000
4,500,000
• 500,000
1,000,000
4,000,000
10,000,000
500,000
1,500,000
4,500,000
4,000,000
500,000
12,000,000
25,000

327,011,784
60,903,035
34,726.703
209,953,374
124,186,774
153,989,100
230,210,148
13,965,146
8,404,825
8,731,766
613,535,033
82,094,144
8,593,786
28,801,800
63,853,782
90,773,776
13,907,579
11,359,362
87,043, 831
92,377,698
6,675,523
77,455.087
823,362

500,000
'250,000
400,000
400,000
164,100
300,000
600,000
500,000
200,000

400,000
250,000
200,000
400,000
94,870
60,000
400,000
148,000
100,000

10,641,931
2,428,746
11,850,975
7,151,603
2,224,326
3,627, 406
7,301,858
7,442,110
527,339

89,714,100

134,467,516 2,541,105,483

50,000
25,000
50,000

10,000
3,500

395,259
282,089
113,071

125,000

13,500

790,419

4,000,000
2,500,000
3,000,000
700,000
50,000
150,000
200,000
125,000
200,000
200,000

4,000,000
2,500,000
3,000,000
150,000
12,000
37,500
125,000
50,000
200,000
150,000

74,532,631
55,121,784
52,731,355
5,271,822
551,959
1,307,036
2,655,417
1,713,784
4,224,961
4,752,034

11,125,000

10,224,500

202,862,783

162

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Capital.

Oregon:
Hood River—Butler Banking Co
North Portland—Live Stock State Bank
Portland-^Ladd & Tilton Bank

.

.

. . . .

Ehode Island: Providence—Industrial Trust Co
South Carolina:
Cheraw—Merchants & Farmers Bank
Hartsville—Bank of Hartsville
.
Sumter—Peoples Bank of Sumter
Westminster—Westminster Bank
Woodruff—Bank of Woodruff
Total
South Dakota: Sioux Falls—Sioux Falls Savings Bank
Tennessee: Memphis—Union & Planters Bank & Trust Co
Texas:
Bonham—First State Bank.
Bremond—First State Bank.
DallasCentral State Bank.
First State Bank
De Kalb—First State Bank
Edgewood—Farmers & Merchants State Bank
Hamlin—First State Bank
Lubbock—Lubbock State Bank
Memphis—Citizens State B ank ..
Savoy—First State Bank... .
. .
Wolfe City—First State Bank . .
Total.
..
Virginia:
Chase City—Peoples Bank & Trust Co
Harrisonburg—Peoples Bank of
Norfolk—Citizens Bank ok
Richmond—The Savings Bank of
Total
Washington:
Bellmgham—Northwestern State Bank
Chehalis—Coffman-Dobson Bank & Trust Co
Coifax—First Savings & Trust Co
La Crosse—First State Bank
Reardan—Farmers State Bank...
Rosalia—Bank of Rosalia
. .
Seattle—Metropolitan Bank.
Spokane—Spokane & Eastern Trust Co
Wilbur—State Bank of Wilbur
Total
West Virginia: Grafton—Grafton Banking & Trust Co
Wisconsin:
Clinton—Citizens Bank
Madison—Bank of Wisconsin
MilwaukeeBadger State Bank...
Marshall & Illsley Bank
American Exchange Bank .
Total.

$909,708
872,846
21,427,913

1,030,000

23,210,467

50,000
300,000

Girard Trust Co
Philadelphia Trust Co
.. .
Penna. Co. for Insurances on Lives and Granting Annuities
PittsburghPittsburgh Trust Co
Union Trust Co
Total.

$20,000
10.000
1,000,000

1,200,000

Total.




Total resources.

$100,000
100,000
1,000,000

Pennsylvania:
Lykens—Miners Deposit Bank
New Castle—Lawrence Savings & Trust Co..;
PhiladelphiaCommercial Trust Co. .

Surplus.

110,000
300,000

679,897
3,183,907

1,000,000
2,500,000
1,000,000

1,750,000
7,500,000
4,000,000

24,796,108
61,172,461
26,160,684

2,000,000

5,000,000

43,602,088

2,000,000
1,500,000

1,000,000
34,500,000

21,067,764
137,516,868

10,350,000

54,160,000

318,179,777

3,000,000

4,000,000

71,783,303

100,000
50,000
100,000
100,000
• 40,700

3,000
50,000
19,400
25,000
10,500

338,007
394,626
368,325
453,433
256,874

390,700

107,900

1,811,265

200,000
1,400,000

23,000
200,000

3,852,236
15,307,795

100,000
50,000

14,000
25,000

543,354
232,823

200,000
250,000
25,000
35,000
25,000
100,000
75,000
25,000
50,000

5,000
28,000
25,000
7,000
1,750
13,000
26,400
3,500
20,000

1,698,236
3,016, 796
'2,638,304
95,675
15S, 894
837,114
377,603
120,175
235,461

935,000

168,650

9,954,435

100,000
150,000
600,000
200,000

10,000
20,000
500,000
200,000

173,005
554,154
5,896,002
2,198,163

1,050,000

730,000

8,821,324

100,000
150,000
50,000
60,000
25,000
25,000
200,000
1.000,000
50,000

45^000
100,000
15,000
8,000
7,500
5,000
100,000
200,000
5,000

1,474,055
1,493,790
369,711
715,454
639,855
308, 777
3,559, 260
20,078,867
919,175

1,660,000

485,500

29,556,944

100,000

30,000

1,180,082

50,000
300,000

10,000
60,000

478,360
2,156,438

200,000
1,000,000
250,000

2,000
700,000
50,000

1,506,471
17,405, 264
4,721,622

1,800,000

822,000

26,268,155

Exhibit J.—REGULATIONS OF THE FEDERAL RESERVE
BOARD.
REGULATION A, SERIES OF 1917.
(Superseding Regulation A of 1916.)
REDISCOUNTS UNDER SECTION
A,

13.

NOTES, DRAFT, AND BILLS OF EXCHANGE.

I. General statutory provisions.
Any Federal Reserve Bank may discount for any of its member banks any
note, draft, or bill of exchange provided—
(a) It lias a maturity at the time of discount of not more than 90 days, exclusive of days of grace; but if drawn or issued for agricultural purposes or based
on live stock, it may have a maturity at the time of discount of not more than
six months, exclusive of days of grace.
(b) It arose out of actual commercial transactions; that is, it must be a note,
draft, or bill of exchange which has been 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.
(c) It was not issued for carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of the Government of the United States.
(d) The aggregate of notes, drafts, and bills bearing the signature or indorsement of any one borrower, whether a person, company, firm, or corporation
rediscounted for any one member bank shall at no time exceed 10 per cent of
the unimpaired capital and surplus of such bank; but this restriction shall not
apply to the discount of bills of exchange drawn in good faith against actually
existing values.
(e) It is indorsed by a member bank.
(/) It conforms to all applicable provisions of this regulation.
II. General character of notes, drafts, and bills of exchange eligible.
The Federal Reserve Board, exercising its statutory right to define the character of a note, draft, or bill of exchange eligible for rediscount at a Federal
Reserve Bank, has determined that—
(a) It must be a note, draft, or bill of exchange the proceeds of which have
been used or are to be used in producing, purchasing, carrying, or marketing
goods1 in one or more of the steps of the process of production, manufacture,
or distribution.
(b) It must not be a note, draft, or bill of exchange the proceeds of which
have been used or are to be used for permanent or fixed investments of any
kind, such as land, buildings, or machinery.
(c) It must not be a note, draft, or bill of exchange the proceeds of which
have been used or are to be used for investments of a purely speculative character.
(d) It may be secured by the pledge of goods or collateral, provided it is
otherwise eligible.
1
When used in this regulation the word " goods " shall be construed to include goods,
wares, merchandise, or agricultural products, including live stock.




163

164

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

III. Applications for rediscount.
All applications for the rediscount of notes, drafts, or bills of exchange must
contain a certificate of the member bank, in form to be prescribed by the Federal
Reserve Bank, that, to the best of its knowledge and belief, such notes, drafts,
or bills of exchange have been issued for one or more of the purposes mentioned
in I I (a).
IV. Promissory notes.
(a) Definition.—A.promissory note, within the meaning of this regulation,
is denned as an unconditional promise, in writing, signed by the maker, to pay,
in the United States, at a fixed or determinate future time, a sum certain in
dollars to order or to bearer.
(b) Evidence of eligibility and requirement of statements.—A Federal Reserve Bank must be satisfied by reference to the note or otherwise that it is
eligible for rediscount. Compliance of a note with II (b) may be evidenced by
a statement of the borrower showing a reasonable excess of quick assets over
certain liabilities. The member bank shall certify in its application whether
the note offered for rediscount has been discounted for a depositor or another
member bank or whether it has been purchased from a nondepositor. It must
also certify wiiether a financial statement of the borrower is on file.
Such financial statements must be on file with respect to all notes offered for
rediscount which have been purchased from sources other than a depositor or a
member bank. With respect to any other note offered for rediscount, if no
statement is on file, a Federal Reserve Bank shall use its discretion in taking
the steps necessary to satisfy itself as to eligibility. It is authorized to waive
the requirement of a statement wih respect to any note discounted by a member
bank for a depositor or another member bank—
(1) If it is secured by a warehouse, terminal, or other similar receipt covering goods in storage;
(2) If the aggregate of obligations of the borrower rediscounted and offered
for rediscount at the Federal Reserve Bank is less than a sum equal to 10 per
cent of the paid-in capital of the member bank and does not exceed $5,000.
V. Drafts, bills of exchange, and trade acceptances.
(a) Definition.—A draft or bill of exchange, within the meaning of this
regulation, is defined as an unconditional order in writing, addressed by one
person to another, other than a banker as defined under B (b), signed by the
person giving it, requiring the person to whom it is addressed, to pay, in the
United States, at a fixed or determinable future time, a sum certain in dollars
to the order of a specified person; and a trade acceptance is defined as a draft
or bill of exchange drawn by the seller on the purchaser of goods sold and
accepted by such purchaser.
(b) Evidence of eligibility.—A Federal Reserve Bank shall take such steps
as it deems necessary to satisfy itself as to the eligibility of the draft or bill
offered for rediscount, unless it presents prima facie evidence thereof or bears a
stamp or certificate affixed by the acceptor or drawer showing that it is a trade
acceptance.
VI. Six months' agricultural paper.
(a) Definition.—Six months' agricultural paper, within the meaning of this
regulation, is defined as a note, draft, bill of exchange, or trade acceptance
drawn or issued for agricultural purposes, or based on live stock; that is, a




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

165

note, draft, bill of exchange, or trade acceptance the proceeds of which have
been used, or are to be used, for agricultural purposes, including the breeding,
raising, fattening, or marketing of live stock, and which has a maturity at
the time of discount of not more than six months, exclusive of days of grace.
(b) Eligibility.—To be eligible for rediscount six months' agricultural paper,
whether a note, draft, bill of exchange, or trade acceptance, must comply with
the respective sections of this regulation which would apply to it if its maturity were 90 days or less.
VII. Commodity paper.
(a) Definition.—Commodity paper within the meaning of this regulation
is defined as a note, draft, bill of exchange, or trade acceptance accompanied
and secured by shipping documents or by a warehouse, terminal, or other
similar receipt covering approved and readily marketable, nonperishable staples
properly insured.
(b) Eligibility.—To be eligible for rediscount at the special rates authorized
to be established for commodity paper, such a note, draft, bill of exchange, or
trade acceptance must also comply with the respective sections of this regulation applicable to it, must conform to the requirements of the Federal Reserve
Bank relating to shipping documents, receipts, insurance, etc., and must be
a note, draft, bill of exchange, or trade acceptance on which the rate of interest or discount, including commission, charged the maker, does not exceed 6
per cent per annum.
(c) Suspension of commodity rate.—As the special rate on commodity paper
is intended to assist actual producers during crop-moving periods and is not
designed to benefit speculators, the board reserves the right to suspend the
special rates herein provided whenever it is apparent that the movement of
crops, which this rate is intended to facilitate, has been practically completed.
B. BANKERS' ACCEPTANCES.

{a) General statutory provisions.-—Any Federal Reserve Bank may discount
for any of its member banks bankers' acceptances which have a maturity at
the time of discount of not more than three months' sight, exclusive of days of
grace, which are indorsed by at least one member bank, and which grow out of
transactions involving the importation or exportation of goods; or, which grow
out of transactions involving the domestic shipment of goods, provided shipping
documents are attached at the time of acceptance; or, which are secured at the
time of acceptance by a warehouse receipt or other such document conveying or
securing title covering readily marketable staples. Any Federal Reserve Bank
may also acquire drafts or bills of exchange drawn on member banks by banks
or bankers in foreign countries or dependencies or insular possessions of the
United States for the purpose of furnish dollar exchange.
(&) Definition.—A banker's acceptance within the meaning of this regulation
is defined as a draft or bill of exchange of which the acceptor is a bank or trust
company, or a firm, person, company, or corporation engaged in the business of
granting bankers' acceptance credits.
(c) Eligibility.—To be eligible for rediscount the bill must have been drawn
under a credit opened for the purpose of conducting, or settling accounts resulting from, a transaction or transactions involving (1) the shipment of goods
between the United States and any foreign country, or between the United
States and any of its dependencies or insular possessions, or between foreign
countries, or (2) the domestic shipment of goods, provided shipping documents

are attached at the time of acceptance; or it must be a bill which is secured at



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ANNUAL BEPOBT OF THE FEDERAL RESERVE BOARD.

the time of acceptance by a warehouse receipt or other such document conveying
or securing title covering readily marketable staples. Any Federal Reserve
Bank may also acquire drafts or bills drawn by a bank or banker in a foreign
country or dependency or insular possession of the United States for the purpose
of furnishing dollar exchange and accepted by a member bank in accordance
with the provisions of regulation O, page 8. Such drafts or bills may be acquired prior to acceptance provided they have the indorsement of a member
bank.
(d) Evidence of eligibility.—A Federal Reserve Bank must be satisfied, either
by reference to the acceptance itself or otherwise, that it is eligible for rediscount. Satisfactory evidence of eligibility may consist of a stamp or certificate
affixed by the acceptor in form satisfactory to the Federal Reserve Bank.

REGULATION B, SERIES OF 1917.
(Superseding Regulation B of 1916.)
CPEN-MAKKET PUECHASES OF BILLS OF EXCHANGE, TBADE ACCEPTANCES, AND BANKERS' ACCEPTANCES TJNDEK SECTION 14.

I. General statutory

provisions.

Section 14 of the Federal Reserve Act permits Federal Reserve Banks under
rules and regulations to be prescribed by the Federal Reserve Board to purchase and sell in the open market from banks, firms, corporations, or individuals, bankers' acceptances and bills of exchange of the kinds and maturities
made eligible by the act for rediscount, with or without the indorsement of a
member bank.
II. General character of hills and acceptances eligible.
The Federal Reserve Board, exercising its statutory right to regulate the
purchase of bills of exchange and acceptances, has determined that a bill of exchange or acceptance, to> be eligible for purchase by Federal Reserve Banks
under section 14—
(a) Must not have been issued for carrying or trading in stocks, bonds, or
other investment securities, except bonds and notes of the Government of the
United States.
(b) Must not be a bill the proceeds of which have been used or are to be
used for permanent or fixed investments of any kind, such as land, buildings,
or machinery, or for investments of a merely speculative character.
(c) Must have been accepted by the drawee prior to purchase by a Federal
Reserve Bank unless it is accompanied and secured by shipping documents or
by a warehouse, terminal, or other similar receipt conveying security title.
(d) May be secured by the pledge of goods 1 or collateral, provided it is
otherwise eligible.
In addition to the above general requirements, each bill of exchange and
trade acceptance purchased under the terms of this regulation must also conform to the more specific requirements set forth under III, and each banker's
acceptance must also conform to the more specific requirements set forth
under IV.
1
When used in this regulation the word " goods" shall be construed to include goods,
wares, merchandise, or agricultural products, including live stock.



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167

III. Bills of exchange and trade acceptances.
(a) Definition.—A bill of exchange, within the meaning of this regulation, is
defined as an unconditional order in writing, addressed by one person to another, other than a banker as defined under IV ( a ) , signed by the person giving it, requiring the person to whom it is addressed, to pay, in the United
States, at a fixed or determinable future time, a sum certain in dollars to the
order of a specified person; and a trade acceptance is defined as a bill of exchange drawn by the seller on the purchaser of goods sold, and accepted by
such purchaser.
(b) Eligibility.—To be eligible for purchase the bill must have arisen out of
an actual commercial transaction, domestic or foreign; that is, it must be a
bill which has been issued or drawn for agricultural, industrial, or commercial
purposes or the proceeds of which have been used or are to be used for the
purpose of producing, purchasing, carrying, or marketing goods in one or more
of the steps of the process of production, manufacture, or distribution. It must
have a maturity at time of purchase of not more than 90 days, exclusive of
days of grace.
(c) Evidence of eligibility.—A Federal Reserve Bank shall take such steps
as it deems necessary to satisfy itself as to the eligibility of the bill offered for
purchase, unless it presents prima facie evidence thereof or bears a stamp or
certificate affixed by the acceptor or drawer showing that it is a trade acceptance.
•
.
(d) Statements.—Unless indorsed by a member bank, a bill is not eligible for
purchase until a satisfactory statement has been furnished of the financial
condition of one or more of the parties thereto.
IV. Bankers1

Acceptances.

(a) Definition.—A banker's acceptance, within the meaning of this regulation, is a bill of exchange of which the acceptor is a bank or trust company, or
a firm, person, company, or corporation engaged in the business of granting
bankers' acceptance credits.
(b) Eligibility.—To be eligible for purchase, the bill which must have a
maturity at time of purchase of not more than three months, exclusive of days
of grace, must have been drawn under a credit opened for the purpose of conducting, or settling accounts resulting from, a transaction or transactions
involving—
(1) The shipment of goods between the United States and any foreign
country, or between the United States and any of its dependencies or insular
possessions, or between foreign countries, or
(2) The shipment of goods within the United States, provided the bill at the
time of its acceptance is accompanied by shipping documents, or
(3) The storage within the United States of readily marketable goods, provided the acceptor of the bill is secured by warehouse, terminal, or other similar
receipt, or
(4) The storage within the United States of goods which have been actually
sold, provided the acceptor of the bill is secured by the pledge or such goods;
or it must be a bill drawn by a bank or banker in a foreign country or dependency or insular possession of the United States for the purpose of furnishing dollar exchange. In this latter case the bank or banker drawing the bill
must be in a country, dependency, or possession whose usages of trade have been
determined by the Federal Reserve Board to require the drawing of bills of
this character.



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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

(c) Evidence of eligibility.—A Federal Reserve Bank must be satisfied either
by reference to the acceptance itself, or otherwise, that it is eligible for purchase. Satisfactory evidence of eligibility may consist of stamp or certificate"
affixed by the acceptor, in form satisfactory to the Federal Reserve Bank. No
evidence of eligibility is required with respect to a bill accepted by a national
bank.
(d) Statements.—Bankers' acceptances, other than those accepted or indorsed
by member banks, shall be eligible for purchase only after the acceptor has
furnished a satisfactory statement of financial condition in form to be approved
by the Federal Reserve Board and has agreed in writing with a Federal Reserve
Bank to inform it upon request concerning the transactions underlying such
acceptances.

REGULATION C, SERIES OF 1917.
(Superseding Regulation C of 1916.)
ACCEPTANCE BY MEMBER BANKS OF DEAFTS AND BILLS OF EXCHANGE.
ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN AGAINST DOMESTIC OS
FOREIGN SHIPMENTS OF GOODS OR SECURED BY WAREHOUSE RECEIPTS
COVERING

READILY

MARKETABLE

STAPLES.

I. Statutory Provisions.
- Under the provisions of the fifth paragraph of section 13 of the Federal
Reserve Act, as amended by the acts of September 7, 1916, and June 21, 1917,
any member bank may accept drafts or bills of exchange drawn upon it, having
not more than six months' sight to run, exclusive of days of grace, which grow
out of transactions involving the importation or exportation of goods; or which
grow out of transactions involving the domestic shipment of goods, provided
shipping documents conveying or securing title are attached at the time of
acceptance; or which are secured at the time of acceptance by a warehouse
receipt or other such document conveying or securing title covering readily
marketable staples. This paragraph limits the amount which any bank shall
accept for any one person, company, firm, or corporation, whether in a foreign
or domestic transaction, to an amount not exceeding at any time, in the aggregate, more than 10 per cent of its paid-up and unimpaired capital stock
and surplus. This limit, however, does not apply in any ease where the
accepting bank is secured either by attached documents or by some other
actual security growing out of the same transaction as the acceptance. The
law also provides that any bank may accept such bills up to an amount not
exceeding at any time, in the aggregate, more than one-half of its paid-up and
unimpaired capital stock and surplus; or, with the approval of the Federal
Reserve Board, up to an amount not exceeding at any time, in the aggregate,
more than 100 per cent of its paid-up and unimpaired capital stock and
surplus. In no event, however, shall the aggregate amount of acceptances
growing out of domestic transactions exceed 50 per cent of such capital stock
and surplus.




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
II.

169

Regulations.

1. Under the provisions of the law referred to above the Federal Reserve
Board has determined that any member bank, having an unimpaired surplus
equal to at least 20 per cent of its paid-up capital, which desires to accept
drafts or bills of exchange drawn for the purposes described above, up to an
amount not exceeding at any time, in the aggregate, 100 per cent of its paid-up
and unimpaired capital stock and surplus, may file an application for that purpose with the Federal Reserve Board. Such application must be forwarded
through the Federal Reserve Bank of the district in which the applying bank
is located.
2. The Federal Reserve Bank shall report to the Federal Reserve Board
upon the standing of the applying bank, stating whether the business and
banking conditions prevailing in its district warrant the granting of such
applications.
3. The approval of any such application may be rescinded upon 90 days'
notice to the bank affected.
B. ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN FOR THE PURPOSE OF
CREATING DOLLAR EXCHANGE.

1. Statutory

provisions.

Section 13 of the Federal Reserve Act also provides that any member bank
may accept drafts or bills of exchange drawn upon it having not more than
three months' sight to run, exclusive of days of grace, drawn, under regulations
to be prescribed by the Federal Reserve Board, by banks or bankers in foreign
countries or dependencies or insular possessions of the United States for the
purpose of furnishing dollar exchange as required by the usages of trade in the
respective countries, dependencies, or insular possessions.
No member bank shall accept such drafts or bills of exchange for any one
bank to an amount exceeding in the aggregate 10 per cent of the paid-up and
.unimpaired capital and surplus of the accepting bank unless the draft or bill
of exchange is accompanied by documents conveying or securing title or by
some other adequate security. No member bank shall accept such drafts or
bills in an amount exceeding at any time in the aggregate one-half of its paid-up
and unimpaired capital and surplus. This 50 per cent limit is separate and
distinct from and not included in the limits placed upon the acceptance of
drafts and bills of exchange as described under section A of the regulation.
II.

Regulations.

Any member bank desiring to accept drafts drawn by banks or bankers in
foreign countries or dependencies or insular possessions of the United States
for the purpose of furnishing dollar exchange shall first make an application
to the Federal Reserve Board setting forth the usages of trade in the respective
countries,'dependencies, or insular possessions in which such banks or bankers
are located.
If the Federal Reserve Board should determine that the usages of trade in
such countries, dependencies, or possessions require the granting of the acceptance facilities applied for, it will notify the applying bank of its approval and
will also publish in the Federal Reserve Bulletin the name or names of those
countries, dependencies, or possessions in which banks or bankers are author


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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

ized to draw on member banks whose applications have been approved for the
purpose of furnishing dollar exchange.
The Federal Reserve Board reserves the right to modify or on 90 days' notice
to revoke its approval either as to any particular member bank or as to any
foreign country or dependency or insular possession of the United States in
which it has authorized banks or bankers to draw on member banks for the
purpose of furnishing dollar exchange.

REGULATION D, SERIES OF 1917[Superseding Regulation D of 1916.]
TIME DEPOSITS AND SAVINGS ACCOUNTS.

Section 19 of the Federal Reserve Act provides, in part, as follows:
Demand deposits, within the meaning of this act, shall comprise all deposits
payable within 30 days, and time deposits shall comprise all deposits payable
after 30 days, and all savings accounts and certificates of deposit which are
subject to not less than 30 days' notice before payment, and all postal savings
deposits.
Time deposits, open accounts.
The term " time deposits, open accounts," shall be held to include all accounts not evidenced by certificates of deposit or savings pass books, in respect
to which a written contract is entered into with the. depositor at the time the
deposit is made that neither the whole nor any part of such deposit may be
withdrawn by check or otherwise except on a given date or on written notice
given by the depositor a certain specified number of days in advance, in no case
less than 30 days.
Savings accounts.
The term " savings accounts " shall be held to include those accounts of the
bank in respect to which, by its printed regulations, accepted by the depositor
at the time the account is opened—
(a) The pass book, certificate, or other similar form of receipt must be presented to the bank whenever a deposit or withdrawal is made; and
(o) The depositor may at any time be required by the bank to give notice of
an intended withdrawal not less than 30 days before a withdrawal is made.
Time certificates of deposit.
A " time certificate of deposit" is defined as an instrument evidencing the
deposit with a bank, either with or without interest, of a certain sum specified
on the face of the certificate payable in whole or in part to the depositor or on
his order—
(a) On a certain date, specified on the certificate, not less than 30 days after
the date of the deposit; or
(&) After the lapse of a certain specified time subsequent to the date of the
certificate, in no case less than 30 days; or
(c) Upon written notice given a certain specified number of days, not less
than 30 days before the date of repayment; and
{d) In all cases only upon presentation of the certificate at each withdrawal
for proper indorsement or surrender.




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

171

REGULATION E, SERIES OF 1917.
(Superseding Regulation E of 1916.)
PURCHASE OF WARRANTS.

Statutory Requirements.
Section 14 of the Federal Reserve Act reads in part as follows:
Every Federal Reserve Bank shall have power—
(&) 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 date
of purchase of not exceeding six months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any State,
county, district, political subdivision, or municipality in the continental United
States, including irrigation, drainage, and reclamation districts, such purchases
to be made in accordance with rules and regulations prescribed by the Federal
Reserve Board.
For brevity's sake, the term " warrant" when used in this regulation shall
be construed to mean " bills, notes, revenue bonds, and warrants with a maturity from date of purchase of not exceeding six months," and the term " municipality " shall be construed to mean " State, county, district, political subdivision, or municipality in the continental United States, including irrigation,
drainage, and reclamation districts."
Regulation.
I. Any Federal Reserve Bank may purchase warrants issued by a municipality in anticipation of the collection of taxes or in anticipation of the receipt of
assured revenues, provided—
(a) They are the general obligations of the entire municipality; it being
intended to exclude as ineligible for purchase all such obligations as are payable from " local benefit" and " special assessment" taxes when the municipality at large is not directly or ultimately liable;
(b) They are issued in anticipation of taxes or revenues which are due and
payable on or before the date of maturity of such warrants; but the Federal
Reserve Board may waive this condition in specific cases. For the purposes
of this regulation, taxes shall be considered as due and payable on the last
day on which they may be paid without penalty;
(c) They are issued by a municipality—
(1) Which has been in existence a for a period of 10 years;
(2) Which for a period of 10 years previous to the purchase has not defaulted * for longer than 15 days in the payment of any part of either principal
or interest of any funded debt authorized to be contracted by it;
(3) Whose net funded indebtedness a does not exceed 10 per cent of the valuation of its taxable property, to be ascertained by the last preceding valuation
of property for the assessment of taxes.
II. Except with the approval of the Federal Reserve Board, no Federal Reserve Bank shall purchase and hold an amount in excess of 25 per cent of the
total amount of warrants outstanding at any time and issued in conformity
with provisions of section 14 (b) above quoted, and actually sold by a municipality.
III. Except with the approval of the Federal Reserve Board, the aggregate
amount invested by any Federal Reserve Bank in warrants of all kinds shall

34365°—18
12


3

See Appendix, p. 172.

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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

not exceed at the time of purchase a sum equal to 10 per cent of the deposits
kept by its member banks with such Federal Reserve Bank.
IV. Except with the approval of the Federal Reserve Board, the maximum
amount which may be invested at the time of purchase by any Federal Reserve
Bank in warrants of any single municipality shall be limited to the following
percentages of the deposits kept in such Federal Reserve Bank by its member
banks:
Five per cent of such deposits in warrants of a municipality of 50,000 population or over;
Three per cent of such deposits in warrants of a municipality of over 30,000
population, but less than 50,000;
One per cent of such deposits in warrants of a municipality of over 10,000
population, but less than 30,000.
V. Warrants of a municipality of 10,000 population or less shall be purchased
only with the special approval of the Board.
The population of a municipality shall be determined by the last Federal or
State census. Where it can not be exactly determined the Board will make
special rulings.
VI. Opinion of recognized counsel on municipal issues or of the regularly appointed counsel of the municipality, as to the legality of the issue shall be
secured and approved in each case by counsel for the Federal Reserve Bank.
VII. Any Federal Reserve Bank may purchase from any of its member banks
warrants of any municipality indorsed by such member bank, with waiver
of demand, notice, and protest, up to an amount not to exceed 10 per cent of
the aggregate capital and surplus of such member bank: Provided, however,
That such warrants comply with provisions I and III of these regulations,
except that where a period of 10 years is mentioned in I (c) hereof a period of
5 years shall be substituted for the purposes of this clause.
APPENDIX TO REGULATION

E.

" NET FUNDED INDEBTEDNESS. "

The term " net funded indebtedness " is hereby defined to mean the legal
gross indebtedness of the municipality (including the amount of any school
district or other bo ads which depend for their redemption upon taxes levied
upon property within the municipality) less the aggregate of the following
items:
(1) The amount of outstanding bonds or other debt obligations made payable
from current revenues;
(2) The amount of outstanding bonds issued for the purpose of providing the
inhabitants of a municipality with public utilities, such as waterworks, docks,
electric plants, transportation facilities, etc.: Provided, That evidence is submitted showing that the income from such utilities is sufficient for maintenance,
for payment of interest on such bonds, and for the accumulation of a sinking
fund for their redemption;
(3) The amount of outstanding improvement bonds, issued under laws which
provide for the levying of special assessments against abutting property in
amounts sufficient to insure the payment of interest on the bonds and the
redemption thereof: Provided, That such bonds are direct obligations of the
municipality and included in the gross indebtedness of the municipality;
(4) The total of all sinking funds accumulated for the redemption of the
gross indebtedness of the municipality, except sinking funds applicable to bonds
just described in (1), (2), and (3) above.



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

173

" EXISTENCE " AND " NONDEFAULT."

Warrants will be construed to comply with that part df I (c) of Regulation
E relative to term of existence and nondefault, under the following conditions:
(1) Warrants issued by or in behalf of any municipality which was, subsequent to the issuance of such warrants, consolidated with or merged into an
existing political division which meets the requirements of these regulations,
will be deemed to be the warrants of such political division: Provided, That
such warrants were assumed by such political division under statutes and
appropriate proceedings the effect of which is to make such warrants general
obligations of such assuming political division and payable, either directly or
ultimately, without limitation to a special fund from the proceeds of taxes
levied upon all the taxable real and personal property within its territorial
limits.
(2) Warrants issued by or in behalf of any municipality which was, subsequent to the issuance of such warrants, wholly succeeded, by a newly organized
political division whose term of existence, added to that of such original
political division or of any other political division so succeeded, is equal to a
period of 10 years will be deemed to be warrants of such succeeding political
division: Provided, That during such period none of such political divisions
shall have defaulted for a period exceeding 15 days in the payment of any
part of either principal or interest of any funded debt authorized to be contracted by it: And provided further, That such warrants were assumed by such
new political division under statutes and appropriate proceedings the effect
of which is to make such warrants general obligations of such assuming
political division and payable, either directly or ultimately, without limitation
to a special fund from the proceeds of taxes levied upon all the taxable real
and personal property within its territorial limits.
(3) Warrants issued by or in behalf of any municipality which, prior to
such issuance, became the successor of one or more, or was formed by the
consolidation or merger of two or more, preexisting political divisions, the
term of existence of one or more of which, added to that of such succeeding
or consolidated political division, is equal to a period of 10 years, will be
deemed to be warrants of a political division which has been in existence for a
period of 10 years: Provided, That during such period none of such original,
succeeding, or consolidated political divisions shall have defaulted for a period exceeding 15 days in the payment of any part of either principal or
interest of any funded debt authorized to be contracted by it.

REGULATION F, SERIES OF 1917.
(Superseding Regulation F of 1916.)
TRUST POWERS OF NATIONAL BANKS.

I. Statutory provisions.
The Federal Reserve Act provides:
SEC. 11. The Federal Reserve Board shall be authorized and empowered:
(k) To grant by special permit to national banks applying therefor, when
not in contravention of State or local law, the right to act as trustee, executor,
adminisrator, or registrar of stocks and bonds, under such rules and regulations as the said Board may prescribe.



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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
II.

Applications.

A national bank desiring to exercise any or all of the privileges authorized
by section 11, subsection (k), of the Federal Reserve Act, shall make application to the Federal Reserve Board on a form approved by said Board (Form
No. 61). Such application shall be forwarded by the applying bank to the
Chairman of the Board of Directors of the Federal Reserve Bank of its district, and shall thereupon be transmitted to the Federal Reserve Board with
his recommendations.
III. Separate departments.
Every national bank permitted to act under this section shall establish a
separate trust department, and shall place such department under the management of an officer or officers, whose duties shall be prescribed by the board
of directors of the bank.
IV. Provision for keeping trust

funds.

The funds, securities, and investments held in each trust shall be held separate and distinct from the general funds and securities of the bank, and
separate and distinct one from another. The ledgers and other books kept
for the trust department shall be entirely separate and apart from the other
books and records of the bank.
V.

Examinations.

Examiners appointed by the Comptroller of the Currency or designated by
the Federal Reserve Board will hereafter be instructed to make thorough and
complete audits of the cash, securities, accounts, and investments of the trust
department of every bank at the same time that examination is made of the
banking department.
VI. Conformity with State laws.
Nothing in these regulations shall be construed to give to a national bank
doing business as trustee, executor, administrator, or registrar of stocks and
bonds under section 11 (k) of the Federal Reserve Act any rights or privileges
in contravention of the laws of the State in which the bank is located.
VII. Revocation of permits.
The Federal Reserve Board reserves the right to revoke permits granted
under these regulations in any case where in the opinion of the Board a bank
has willfully violatd the provisions of these regulations or the laws of any
State relating to the operations of such bank when acting as trustee, executor,
administrator, or registrar of stocks and bonds.
VIII. Changes in rules.
These regulations are subject to change by the Federal Reserve Board; provided, however, that no such change shall prejudice obligations undertaken in
good faith under regulations in effect at the time the obligation was assumed.




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175

REGULATION G, SERIES OF 1917.
(Superseding Regulation G of 1916.)
LOANS ON FARM LAND AND OTHER REAL ESTATE.

Section 24 of the Federal Reserve Act provides in part that—
Any national banking association not situated in a central reserve city may
make loans secured by improved and unencumbered farm land situated within
its Federal Reserve district or within a radius of one hundred miles of the place
in which such bank is located, irrespective of district lines, and may also make
loans secured by improved and unencumbered real estate located within one
hundred miles of the place in which such bank is located, irrespective of district
lines; but no loan made upon the security of such farm land shall be made for
a longer time than five years, and no loan made upon the security of such real
estate as distinguished from farm land shall be made for a longer time than
one year nor shall the amount of any such loan, whether upon such farm land
or upon such real estate, exceed fifty per centum of the actual value of the
property offered as security. Any such bank may make such loans, whether
secured by such farm land or such real estate, in an aggregate sum equal to
twenty-five per centum of its capital and surplus or to one-third of its time deposits and such banks may continue hereafter as heretofore to receive time deposits and to pay interest on the same.
National banks not located in central reserve cities may, therefore, legally
make loans secured by improved and unencumbered farm land or other real
estate as provided by this section.
Certain conditions and restrictions must, however, be observed—
(a) There must be no prior lien on the land; that is, the lending bank must
hold an absolute first mortgage or deed of trust.
(b) The amount of the loan must not exceed 50 per cent of the actual value
of the land by which it is secured.
(c) The maximum amount of loans which a national bank may make on
real estate, whether on farm land or on other real estate as distinguished from
farm land, is limited under the terms of the act to an amount not in excess of
one-third of its time deposits at the time of the making of the loan, and not
in excess of one-third of its average time deposits during the preceding calendar year: Provided, however, That if one-third of such time deposits as of the
date of making the loan, or one-third of the average time deposits for the preceding calendar year, is less than one-fourth of the capital and surplus of the
bank as of the date of making the loan, the bank in such event shall have authority to make loans upon real estate under the terms of the act to the extent
of one-fourth of the bank's capital and surplus as of that date.
(d) Farm land to be eligible as security for a loan by a national bank must
be situated within the Federal Reserve district in which such bank is located
or within a radius of 100 miles of such bank irrespective of district lines. *
*
(e) Real estate as distinguished from farm land to be eligible as security
for a loan by a national bank must be located within a radius of 100 miles of
such bank irrespective of district lines.
(/) The right of a national bank to " make loans " under section 24 includes
the right to purchase or discount loans already made as well as the right to
make such loans in the first instance: Provided, however, That no loan secured by farm land shall have a maturity of more than five years from the date
on which it was purchased or made by the national bank and that no loan
secured by other real estate shall have a maturity of more than one year from
such date.
(g) Though no national bank is authorized under the provisions of section
24 to make a loan on the security of real estate, other than farm land, for a



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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

period exceeding one year, nevertheless, at the end of the year, it may properly
make a new loan upon the same security for a period not exceeding one year.
The maturing note must be canceled and a new note taken in its place, but
in order to obviate the necessity of making a new mortgage or deed of trust
for each renewal, the original mortgage or deed of trust may be so drawn in
the first instance as to cover possible future renewals of the original note.
Under no circumstances, however, must the bank obligate itself in advance to
make such a renewal. It must, in all cases, preserve the right to require payment at the end of the year and to foreclose the mortgage should that action
become necessary. The same principles apply to loans of longer maturities
secured by farm lands.
(7i) In order that real estate loans held by a bank may be readily classified,
a statement signed by the officers making a loan and having knowledge of the
facts upon which it is based must be attached to each note secured by a first
mortgage on the land by which the loan is secured, certifying in detail as of
the date of the loan that all of the requirements of law have been duly observed.
KEGULATION H, SERIES OF 1917.
(Superseding Regulation H of 1916.)
MEMBERSHIP OF STATE BANKS AND TRUST COMPANIES.

I. Statutory requirements.
Section 9 of the Federal Reserve Act, as amended by the act approved June
21, 1917, which authorizes State banks and trust companies to become members
of the Federal Reserve system, is quoted in the appendix to this regulation on
page 24.
II. Banks eligible for membership.
A State bank or a trust company to be eligible for membership in a Federal
Reserve Bank must comply with the following conditions:
1. It must have been incorporated under a special or general law of the
State or district in which it is located.
2. It must have a minimum paid-up unimpaired capital stock as follows:
In cities or towns not exceeding 3,000 inhabitants, $25,000. In cities or towns
exceeding 3,000 but not exceeding 6,000 inhabitants, $50,000. In cities or
towns exceeding 6,000 but not exceeding 50,000 inhabitants, $100,000. In
cities exceeding 50,000 .inhabitants, $200,000.
III. Application for membership.
Any eligible State bank or trust company may make application on F. R. B.
Form 83a, made a part of this regulation, to the Federal Reserve Board for
an amount of capital stock in the Federal Reserve Bank of its district equal
to 6 per cent of the paid-up capital stock and surplus of such State bank or
trust company. This application must be forwarded direct to the Federal
Reserve agent of the district in which the applying bank or trust company is
located and must be accompanied by Exhibits I, II, and III, referred to on
page 1 of the application blank.



ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
IV. Approval of

177

application.

In passing upon an application the Federal Reserve Board will consider
especially—
1. The financial condition of the applying bank or trust company and the
general character of its management.
2. Whether the corporate powers exercised by the applying bank or trust company are consistent with the purposes of the Federal Reserve Act.
3. Whether the laws of the State or district in which the applying bank or
trust company is located contain provisions likely to present proper compliance
with the provisions of the Federal Reserve Act and the regulations of the Federal Reserve Board made in conformity therewith.
If, in the judgment of the Federal Reserve Board, an applying bank or trust
company conforms to all the requirements of the Federal Reserve Act and these
regulations, and is otherwise qualified for membership, the board will issue a
certificate of approval, subject to such conditions as it may deem necessary to
insure compliance with the act and these regulations. When the conditions
imposed by the board have been accepted by the applying bank or trust company
the board will issue a certificate of approval, whereupon the applying bank or
trust company shall make a payment to the Federal Reserve Bank of its district
of one-half of the amount of its subscription, i. e., 3 per cent of the amount of
its paid-up capital and surplus, and upon receipt of this payment the appropriate
certificate of stock will be issued by the Federal Reserve Bank. The remaining
half of the subscription of the applying bank or trust company shall be subject
to call when deemed necessary by the Federal Reserve Board.
V. Powers and

restrictions.

Every State bank or trust company, while a member of the Federal reserve
system—
1. Shall retain its full charter and statutory rights as a State bank or trust
company, subject to the provisions of the Federal Reserve Act and to the regulations of the Federal Reserve Board, including any conditions embodied in
the certificate of approval;
2. Shall maintain such improvements and changes in its banking practice as
may have been specifically required of it by the Federal Reserve Board as a
condition of its admission and shall not lower the standard of banking then
required of it; and
3. Shall enjoy all the privileges and observe all those requirements of the
Federal Reserve Act and of the regulations of the Federal Reserve Board made
in conformity therewith which are applicable to State banks and trust companies which have become member banks.
VI. Examinations

and reports.

Every State bank or trust company, while a member of the Federal Reserve
System, shall be subject to examinations made by direction of the Federal
Reserve Board or of the Federal Reserve Bank by examiners selected or
approved by the Federal Reserve Board.
In order to avoid duplication, examinations of State banks and trust companies made by State authorities will be accepted in lieu of examinations by
examiners selected or approved by the board wherever these are satisfactory
to the directors of the Federal Reserve Bank and where, in addition, satisfactory arrangements for cooperation in the matter of examination between



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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

the designated examiners of the board and those of the States already exist
or can be effected with State authorities. Examiners from the staff of the
board or of the Federal Reserve Banks will, whenever desirable, be designated
by the board to act with the examination staff of the State, in order that
uniformity in the standard of examination may be assured.
Every State bank or trust company, while a member of the Federal Reserve
System, shall be required to make in each year not less than three reports of
condition and of the payment of dividends. Such reports shall be made to
the Federal Reserve Bank of its district on call of such bank on dates to be
fixed by the Federal Reserve Board.
APPENDIX TO REGULATION

H.

Section 9 of the Federal Reserve Act as amended by the act approved June 21,
1917, provides that:
Any bank incorporated by special law of any State, or organized under the
general laws of any State, or of the United States, desiring to become a member
of the Federal Reserve System, may make application to the Federal Reserve
Board, under such rules and regulations as it may prescribe, for the right to
subscribe to the stock of the Federal Reserve Bank organized within the district
in which the applying bank is located. Such application shall be for the same
amount of stock that the applying bank would be required to subscribe to as a
national bank. The Federal Reserve Board, subject to such conditions as it
may prescribe, may permit the applying bank to become a stockholder of such
Federal Reserve Bank.
In acting upon such applications, the Federal Reserve Board shall consider
the financial condition of the applying bank, the general character of its management, and whether or not the corporate powers exercised are consistent with
the purposes of this act.
Whenever the Federal Reserve Board shall permit the applying bank to become a stockholder in the Federal Reserve Bank of the district its stock subscription shall be payable on call of the Federal Reserve Board and stock issued
to it shall be held subject to the provisions of this act.
All banks admitted to membership under authority of this section shall be
required to comply with the reserve and capital requirements of this act and
to conform to those provisions of law imposed on national banks which prohibit
such banks from lending on or purchasing their own stock, which relate to the
withdrawal or impairment of their capital stock, and which relate to the payment of unearned dividends. Such banks and the officers, agents, and employees thereof shall also be subject to the provisions of and to the penalties
prescribed by section fifty-two hundred and nine of the Revised Statutes, and
shall be required to make reports of condition and of the payment of dividends
to the Federal Reserve Bank of which they become a member. Not less than
three of such reports shall be made annually on call of the Federal Reserve
Bank on dates to be fixed by the Federal Reserve Board. Failure to make such
reports within ten days after the date they are called for shall subject the
offending bank to a penalty of $100 a day for each day that it fails to transmit
such report; such penalty to be collected by the Federal Reserve Bank by suit
or otherwise.
As a condition of membership such banks shall likewise be subject to examinations made by direction of the Federal Reserve Board or of the Federal
reserve bank by examiners selected or approved by the Federal Reserve Board.
Whenever the directors of the Federal reserve bank shall approve the examinations made by the State authorities, such examinations and the reports
thereof may be accepted in lieu of examinations made by examiners selected
or approved by the F'ederal Reserve Board: Provided, however, That when it
deems it necessary the board may order special examinations by examiners of
its own selection and shall in all cases approve the form of report. The expenses of all examinations, other than those made by State authorities, shall
be assessed against and paid by the bank examined.




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179

If at any time it shall appear to the Federal Reserve Board that a member
bank has failed to comply with the provisions of this section or the regulations
of the Federal Reserve Board made pursuant thereto, it shall be within the
power of the board after hearing to require such bank to surrender its stock
in the Federal reserve bank and to forfeit all rights and privileges of membership. The Federal Reserve Board may restore membership upon due proof
of compliance with the conditions imposed by this section.
Any State bank or trust company desiring to withdraw from membership in
a Federal reserve bank may do so, after six months' written notice shall have
been filed with the Federal Reserve Board, upon the surrender and cancellation of all of its holdings of capital stock in the Federal reserve bank: Provided,
however, That no Federal reserve bank shall, except under express authority
of the Federal Reserve Board, cancel within the same calendar year more than
twenty-five per centum of its capital stock for the purpose of effecting voluntary
withdrawals during that year. All such applications shall be dealt with in
the order in which they are filed with the board.
Whenever a member bank shall surrender its stock holdings in a Federal
reserve bank, or shall be ordered to do so by the Federal Reserve Board, under
authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled
to a refund of its cash paid subscription with interest at the rate of one-half of
one per centum per month from date of last dividend, if earned, the amount
refunded in no event to exceed the book value of the stock at that time, and
shall likewise be entitled to repayment of deposits and of any other balance
due from the Federal reserve bank.
No applying bank shall be admitted to membership in a Federal Reserve Bank
unless it possesses a paid-up unimpaired capital sufficient to entitle it to become
a national banking association in the place where it is situated under the provisions of the national bank act.
Banks becoming members of the Federal Reserve System under authority of
this section shall be subject to the provisions of this section and to those of this
act which relate specifically to member banks, but shall not be subject to examination under the provisions of the first two paragraphs of section fifty-two
hundred and forty of the Revised Statutes as amended by section twenty-one of
this act. Subject to the provisions of this act and to the regulations of the board
made pursuant thereto, any bank becoming a member of the Federal Reserve
System shall retain its full charter and statutory rights as a State bank or
trust company, and may continue to exercise all corporate powers granted it by
the State in which it was created, and shall be entitled to all privileges of member banks: Provided, hoivever, That no Federal Reserve Bank shall be permitted
to discount for any State bank or trust company notes, drafts, or bills of exchange of any one borrower who is liable for borrowed money to such State bank
or trust company in an amount greater than ten per centum of the capital and
surplus of such State bank or trust company, but the discount of bills of exchange drawn against actually existing value and the discount of commercial
or business paper actually owned by the person negotiating the same shall not
be considered as borrowed money within the meaning of this section. The Federal Reserve Bank, as a condition of the discount of notes, drafts, and bills of
exchange for such State bank or trust company, shall require a certificate or
guaranty to the effect that the borrower is not liable to such bank in excess of
the amount provided by this section, and will not be permitted to become liable
in excess of this amount while such notes, drafts, or bills of exchange are under
discount with the Federal Reserve Bank.
It shall be unlawful for any officer, clerk, or agent of any bank admitted to
membership under authority of this section to certify any check drawn upon
such bank unless the person or company drawing the check has on deposit therewith at the time such check is certified an amount of money equal to the amount
specified in such check. Any check so certified by duly authorized officers shall
be a good and valid obligation against such bank, but the act of any such officer,
clerk, or agent in violation of this section may subject such bank to a forfeiture
of its membership in the Federal Reserve System upon hearing by the Federal
Reserve Board.




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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
REGULATION I, SERIES OF 1917.
(Superseding Regulation I of 1916.)
INCREASE OR DECREASE OF CAPITAL STOCK OF FEDERAL RESERVE BANKS.
Increase of Capital Stock.

Whenever the capital stock of any Federal Reserve Bank shall be increased
by new banks becoming members, or by the increase of capital or surplus of
any member bank and the allotment of additional capital stock to such bank,
the board of directors of such Federal Reserve Bank shall certify such increase
to the Comptroller of the Currency on Form 58, which is made a part of this
regulation.
Decrease of capital stock.
I. Whenever a member bank reduces its capital stock or surplus, and, in the
case of reduction of its capital, such reduction has been approved by the Comptroller of the Currency and by the Federal Reserve Board in accordance with
the provisions of section 28 of the Federal Reserve Act, it shall file with the
Federal Reserve Bank of which it is a member an application on Form 60,
which is made a part of this regulation. When this application has been approved, the Federal Reserve Board shall take up and cancel the receipt issued
to such bank for cash payments made on its subscription and shall issue in
lieu thereof a new receipt after refunding to the member bank the proportionate amount due such bank on account of the subscription canceled. The
receipt so issued shall show the date of original issue, so that dividends may be
calculated thereon.
II. Whenever a member bank shall be declared insolvent and a receiver
appointed by the proper authorities, such receiver shall file with the Federal
Reserve Bank of which the insolvent bank is a member an application on
Form 87, which is made a part of this regulation, for the surrender and cancellation of the stock held by and for the refund of all balances due to such
insolvent member bank. Upon approval of this application by the Federal
Reserve agent the Federal Reserve .Bank shall accept and cancel the stock surrendered, and shall adjust accounts between the member bank and the Federal Reserve Bank by applying to the indebtedness of the insolvent member
bank to such Federal Reserve Bank all cash-paid subscriptions made by it
on the stock canceled with one-half of 1 per cent per month from the period of
last dividend, if earned, not to exceed the book value thereof, and the balance,
if any, shall be paid to the duly authorized receiver of such insolvent member
bank.
III. Whenever a member bank goes into voluntary liquidation and a liquidating agent is appointed, such agent shall file with the Federal Reserve Bank
of which it is a member an application on Form 86, which is made a part
of this regulation, for the surrender and cancellation of the stock held by
and for the refund of all balances due to such liquidating member bank.
Upon approval of this application by the Federal Reserve agent the Federal
Reserve Bank shall accept and cancel the stock surrendered, and shall adjust
accounts between the liquidating member bank and the Federal Reserve Bank
by applying to the indebtedness of the liquidating member bank to such Federal
Reserve Bank all cash-paid subscriptions made by it on the stock canceled with
one-half of 1 per cent per month from the period of last dividend, if earned,
not to exceed the book value thereof, and the balance, if any, shall be paid to
the duly authorized liquidating agent of such liquidating member bank.



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181

IV. Whenever the stock of a Federal Reserve Bank shall be reduced in the
manner provided in Paragraphs I, II, or III of this regulation the board of
directors of such Federal Reserve Bank shall, in accordance with the provisions
of section 6, file with the Comptroller of the Currency a certificate of such
reduction on Form 59, which is made a part of this regulation.

REGULATION J, SERIES OF 1917.
(Superseding Regulation J of 1916.)
CHECK CLEARING AND COLLECTION

Section 16 of the Federal Reserve Act authorizes the Federal Reserve Board
to require each Federal Reserve Bank to exercise the function of a clearing
house for its member banks, and section 13 of the Federal Reserve Act, as
amended by the act approved June 21, 1917, authorizes each Federal Reserve
Bank to receive from any nonmember bank or trust company, solely for the
purposes of exchange or of collection, deposits of current funds in lawful money,
national-bank notes, Federal Refserve notes, checks, and drafts payable upon
presentation, or maturing notes and bills, provided such nonmember bank or
trust company maintains with its Federal Reserve Bank a balance sufficient
to offset the items in transit held for its account by the Federal Reserve Bank.
In pursuance of the authority vested in it under these provisions of law, the
Federal Reserve Board, desiring to afford both to the public and to the various
banks of the country a direct, expeditious, and economical system of check
collection and settlement of balances, has arranged to have each Federal Reserve Bank exercise the functions of a clearing house for such of its member
banks as desire to avail themselves of its privileges and for such State banks
and trust companies as may maintain with the Federal Reserve Bank a balance
sufficient to qualify it as a clearing member under the provisions of section 13.
Each Federal Reserve Bank shall exercise the functions of a clearing house
under the following general terms and conditions:
(1) Each Federal Reserve Bank will receive at par from its member banks
and from nonmember banks in its district which have become clearing members,
checks x drawn on all member and clearing member banks and on all other nonmember banks which agree to remit at par through the Federal Reserve Bank
of their district.
(2) Each Federal Reserve Bank will receive at par from other Federal Reserve Banks and will receive at par from all member and clearing member
banks, regardless of their location, for the credit of their accounts with their
respective Federal Reserve Banks, checks drawn upon all member and clearing
member banks of its district and upon all other nonmember banks of its district whose checks can be collected at par by the Federal Reserve Bank. The
Federal Reserve Banks will prepare a par list of all nonmember banks, to be
revised from time to time, which will be furnished to member and clearing
member banks.
(3) Immediate credit entry upon receipt subject to final payment will be
made for all such items upon the books of the Federal Reserve Bank at full
1
A check is generally defined as a draft or order upon a bank, or order upon a bank or
banking house, purporting to be drawn upon a deposit of funds, for the payment at all
events of a certain sum of money to a certain person therein named, or to him or his
order, or to bearer, and payable instantly on demand.




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ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

face value, but the proceeds will not be counted as part of the minimum reserve
nor become available to meet checks drawn until actually collected, in accordance with the best practice now prevailing.
(4) Checks received by a Federal Reserve Bank on its member or clearingmember banks will be forwarded direct to such banks and will not be charged
to their accounts until sufficient time has elapsed within which to receive advice of payment.
(5) In the selection of collecting agents for handling checks on nonmember
banks, which have not become clearing members, member banks will be given
the preference.
(6) Under this plan each Federal Reserve Bank will receive at par from its
member and clearing-member banks checks on all member and clearing-member
banks and on all other nonmember banks whose checks can be collected at par by
any Federal Reserve Bank. Member and clearing-member banks will be required
by the Federal Reserve Board to provide funds to cover at par all checks received from or for the account of their Federal reserve banks: Provided, hoivever,
That a member or clearing-member bank may ship currency or specie from its
own vaults at the expense of its Federal Reserve Bank to cover any deficiency
which may arise because of and only in the case of inability to provide items
to offset checks received from or for the account of its Federal Reserve Bank.1
(7) Section 19 of the Federal Reserve Act provides that—
The required balance carried by a member bank with a Federal Reserve
Bank may, under the regulations and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by
such member bank for the purpose of meeting existing liabilities: Provided,
however, That no bank shall at any time make new loans or shall pay any
dividends unless and until the total balance required by law is fully restored.
It is manifest that items in process of collection can not lawfully be counted
as part of the minimum reserve balance to be carried by a member bank with
its Federal Reserve Bank. Therefore, should a member bank draw against
such items the draft would be charged against its reserve balance if such
balance were sufficient in amount to pay it; but any resulting impairment of
reserve balances would be subject to all the penalties provided by the act.
Inasmuch as it is essential that the law in respect to he mainenance by
member banks of the required minimum reserve balance shall be strictly complied with, the Federal Reserve Board, under authority vested in it by section
19 of the act, hereby prescribes as the penalty for any deficiency in reserves
a sum equivalent to an interest charge on the amount of the deficiency of 2
per cent per annum above the ninety-day discount rate of the Federal Reserve
Bank of the district in which the member bank is located. The Board reserves
the right to increase this penalty whenever conditions require it.
For the purpose of keeping their reserve balances intact member banks may
at all times have recourse to the rediscount facilities offered by their respective
Federal Reserve Banks.
(8) Each Federal Reserve Bank will determine by analysis the amounts of
uncollected funds appearing on its books to the credit of each member bank.
Such analysis will show the true status of the reserve held by the Federal
Reserve Bank for each member bank and will enable it to apply the penalty for
impairment of reserve.
1
In accordance with instructions issued by the Federal Reserve Board on Apr. 24,
1917, the various Federal Reserve Banks have issued circulars setting forth the conditions under which their respective member banks may draw drafts on their Reserve Bank
accounts payable with or through any other Federal Reserve Bank.




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183

A schedule of the time required within which to collect checks will be furnished to each bank to enable it to determine the time at which any item sent
to its Federal Reserve Bank will be counted as reserve and become available
to meet any checks drawn.
(9) In handling items for member and clearing member banks, a Federal
Reserve Bank will act as agent only. The Board will require that each member and clearing member bank authorize its Federal Reserve Bank to send
checks for collection to banks on which checks are drawn, and, except for
negligence, such Federal Reserve Bank will assume no liability. Any further
requirements that the Board may deem necessary will be set forth by the Federal Reserve Banks in their letters of instruction to their member and clearing
member banks. Each Federal Reserve Bank will also promulgate rules and
regulations governing the details of its operations as a clearing house, such
rules and regulations to be binding upon all member and nonmember banks
which are clearing through the Federal Reserve Bank.
(10) The cost of collecting and clearing checks must necessarily be borne by
the banks receiving the benefit and in proportion to the service rendered. An
accurate account will be kept by each reserve bank of the cost of performing
this service and the Federal Reserve Board will, by rule, fix the charge, at so
much per item, which may be imposed for the service of clearing or collection
rendered by the reserve banks, as provided in section 16 of the Federal Reserve Act.

REGULATIONS GOVERNING THE EXPORTATION OF COIN,
BULLION, AND CURRENCY.
EXECUTIVE OEDEE.

By virtue of the authority vested in me, I direct that the regulations, orders,
limitations, and exceptions prescribed in relation to the exportation of coin,
bullion, and currency shall be administered by and under the authority of the
Secretary of the Treasury; and upon the recommendation of the Secretary of
the Treasury, I hereby prescribe the following regulations in relation thereto:
1. Any individual, firm, or corporation desiring to export from the United
States or any of its Territorial possessions to any foreign country named in the
proclamation dated September seventh, nineteen hundred and seventeen, any
coin, bullion, or currency shall first file an application in triplicate with the
Federal reserve bank of the district in which such individual, firm, or corporation is located, such application to state under oath and in detail the nature
of the transaction, the amount involved, the parties directly and indirectly interested, and such other information as may be of assistance to the proper
authorities in determining whether the exportation for which a license is desired will be compatible with the public interest.
2. Each Federal reserve bank shall keep a record copy of each application
filed with it under the provisions of this regulation and shall forward the
original application and a duplicate to the Federal Reserve Board at Washington, together with such information or suggestions as it may believe proper in
the circumstances, and shall, in addition, make a formal recommendation as to
whether or not in its opinion the exportation should be permitted.
3. The Federal Reserve Board, subject to the approval of the Secretary of
the Treasury, is hereby authorized and empowered upon receipt of such application and the recommendation of the Federal reserve bank to make such
ruling as it may deem proper in the circumstances and, if in its opinion the
exportation in question be compatible with the public interest, to permit said
exportation to be made; otherwise to refuse it.
WOODEOW WILSON.
T H E W H I T E HOUSE, September 7,




1917.

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AisrisruAL

REPORT OF T H E FEDERAL RESERVE BOARD.

B Y THE PRESIDENT OF THE UNITED STATES OF AMERICA,
A PROCLAMATION.

Whereas Congress has enacted and the President has, on the fifteenth day of
June, one thousand nine hundred and seventeen, approved a law which contains the following provisions:
Whenever during the present war the President shall find that the public
safety shall so require, and shall make proclamation thereof, it shall be unlawful to export from or ship from or take out of the United States to any country
named in such proclamation any article or articles mentioned in such proclamation, except at such time or times and under such regulations and orders and
subject to such limitations and exceptions as the President shall prescribe, until
otherwise ordered by the President or by Congress: Provided, however, That
no preference shall be given to the ports of one State over those of another.
Any person who shall export, ship, or take out, or deliver or attempt to deliver for export, shipment, or taking out, any article in violation of this title,
or of any regulation or order made hereunder, shall be fined not more than
$10,000, or, if a natural person, imprisoned for not more than two years, or
both; and any article so delivered or exported, shipped, or taken out, or attempted to be so delivered or exported, shipped, or taken out, shall be seized
and forfeited to the United States; and any officer, director, or agent of a corporation who participates in any such violation shall be liable to like fine or
imprisonment, or both.
Whenever there m reasonable cause to believe that any vessel, domestic or
foreign, is about to carry out of the United States any article or articles in
violation of the provisions of this title, the collector of customs for the district
in which such vessel is located is hereby authorized and empowered, subject to
review by the Secretary of Commerce, to refuse clearance to any such vessel,
domestic or foreign, for which clearance is required by law, and by formal
notice served upon the owners, master, or person or persons in command or
charge of any domestic vessel for which clearance is not required by law, to
forbid the departure of such vessel from the port, and it shall thereupon be
unlawful for such vessel to depart. Whoever, in violation of any of the provisions of this section shall take, or attempt to take, or authorize the taking of
any such vessel out of port or from the jurisdiction of the United States, shall
be fined not more than $10,000 or imprisoned not more than two years, or both;
and, in adition, such vessel, her tackle, apparel, furniture, equipment, and her
forbidden cargo shall be forfeited to the United States.
And whereas the President has heretofore by proclamation, under date of the
twenty-seventh day of August in the year one thousand nine hundred and seventeen, declared certain exports in time of war unlawful, and the President finds
that the public safety requires that such proclamation be amended and supplemented in respect to the articles hereinafter mentioned:
Now, therefore, I, Woodrow Wilson, President of the United States of America,
do hereby proclaim to all whom it may concern, that the public safety requires
that, except at such time or times, and under such regulations and orders, and
subject to such limitations and exceptions as the President shall prescribe,
until otherwise ordered by the President or by Congress, the following articles,
namely: Coin, bullion, and currency shall not, on and after the tenth day of September, in the year one thousand nine hundred and seventeen, be exported from
or shipped from or taken out of the United States or its territorial possessions
to Albania, Austria-Hungary, Belgium, Bulgaria, Denmark, her colonies, possessions, or protectorates, Germany, her colonies, possessions, or protectorates,
Greece, Leichtenstein, Luxembourg, the Kingdom of the Netherlands, Norway,
Spain, her colonies, possessions, or protectorates, Sweden, Switzerland or Turkey, Abyssinia, Afghanistan, Argentina, Bolivia, Brazil, China, Chile, Colombia,
Costa Rica, Cuba, Dominican Republic, Ecuador, Egypt, France, her colonies, pos


ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

185

sessions, or protectorates, Guatemala, Haiti, Honduras, Italy, her colonies, possessions, or protectorates, Great Britain, her colonies, possessions, or protectorates,
Japan, Liberia, Mexico, Monaco, Montenegro, Morocco, Nepal, Nicaragua, the
colonies, possessions, or protectorates of the Netherlands, Oman, Panama, Paraquay, Persia, Peru, Portugal, her colonies, possessions, or protectorates, Roumania, Russia, Salvador, San Marino, Serbia, Siam, Uruguay, or Venezuela.
The regulations, orders, limitations, and exceptions prescribed will be administered by and under the authority of the Secretary of the Treasury, from
whom licenses in conformity with said regulations, orders, limitations, and
exceptions will issue.
Except as hereby amended and supplemented, the above-mentioned proclamation under date of August 27, 1917, shall continue in full force and effect.
In witness whereof I have hereunto set my hand and caused the seal of
the United States of America to be affixed.
Done at the city of Washington, this seventh day of September in the year
of our Lord one thousand nine hundred and seventeen and of the independence
of the United States of America the one hundred and forty-second.
WOODEOW WILSON.

By the President:
ROBERT LANSING, Secretary of

State.

ADMINISTRATIVE PROCEDURE,
METHOD OF MAKING APPLICATION.

Individuals firms and corporations desiring to obtain licenses for the exportation of coin, bullion, and currency, must file an application with the
Federal reserve bank of the district in which the applicant resides or where the
transaction requiring the shipment originates. These applications must be
made on a standard form which has been furnished to all Federal reserve
banks.
EXPORTS OF GOLD.

It will be the general policy of the board not to authorize the exportation of
gold unless the shipment applied for is shown to be connected in a direct and
definite way with a corresponding importation of merchandise for consumption
in the United States, but in any case authorization will be granted only where
the exportation of gold in payment for such merchandise is found to be compatible with the public interest. In reaching its conclusions, however, the
board will consider all attendng circumstances in each particular case.
SHIPMENTS OF CANADIAN SILVER COIN AND CURRENCY.

Until further notice the board will approve all applications for the exportation of Canadian silver coin and currency without limitation. The Treasury
Department has instructed collectors of customs to pass such shipments into
Canada when approved by the Federal reserve bank of the district from which
the shipments are made. Continuous permits for shipments of Canadian silver
coin and currency without requiring an application in each case, may be granted
by Federal reserve banks upon condition that each transaction will be reported
to it without delay. The Federal reserve banks will transmit to the board
weekly reports of all applications of every kind passed upon by them, showing
the amount of each shipment.



186

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
EXPOBTS OF SILVER BULLION AND SILVER COIN OF FOREIGN MINTAGE.

Applications for the exportation of silver bullion and silver coin of foreign
mintage will in general be approved by the Federal Reserve Board upon recommendation of the Federal Reserve Bank with which the application is filed.
UNITED STATES NOTES, NATIONAL BANK NOTES, AND FEDERAL RESERVE NOTES.

Applications for the exportation of United States notes, national bank notes,
and Federal reserve notes will, as a rule, be approved by the Federal Reserve
Board, but each application must come before the board for its determination
before shipment is made..
TRAVELERS LEAVING THE COUNTRY.

Instructions have been issued by the Treasury Department to collectors of
customs to permit travelers leaving the country to carry on their persons or
in their baggage:
(a) United States notes, national bank notes, and Federal reserve notes
not to exceed $5,000 for each adult;
(b) American silver dollars, subsidiary silver coins, and silver certificates
not to exceed $200 for each adult;
(c) Gold coin or gold certificates not to exceed $200 for each adult.
Collectors of customs have been informed that in dealing with travelers
they may act in accordance with these regulations, without communicating
with the Federal Reserve Board or with the Federal Reserve Bank of their
district
GENERAL.

Shipments of coin or currency which appear
for enemy account or for the benefit of the
These regulations are issued subject to change
tion granted will be regarded as constituting a

to be or are suspected of being
enemy, will not be permitted.
without notice, and no applicaprecedent.
FEDERAL RESERVE BOARD,
HARDING, Governor.

By W. P. G.
Approved:
W. G. MCADOO,

Secretary of the Treasury.
WASHINGTON, D. C, September 21, 1917.




Exhibit K.—FOREIGN BRANCHES AUTHORIZED.
The Board has authorized the establishment of foreign branches
and subbranches of national banks as follows:
National City Bank, New York City:
"
Date authorized.
Branch at Buenos Aires, Argentina
Sept.
2, 1914
Subbranch at Montevideo, Uruguay *
Apr. 16, 1915
Branch at Rio de Janeiro, Brazil
Sept.
2 ? 1914
Subbranches at Santos, Sao Paulo, Pernambuco, Para,
and Bahia, Brazil
Dec. 23, 1914
Branch at Habana, Cuba
Mar. 17, 1915
Subbranches at Santiago, Matanzas, Cienfuegos, Guantanamo, Camaguey, Cardenas, Manzanillo, Cuba;
Kingston, Jamaica; and Santo Domingo, Santo
Domingo
.
Mar. 17, 1915
Branch at Valparaiso, Chile
Oct. 18, 1915
Subbranches at Antofagasta and Santiago, Chile
Oct. 18, 1915
Branch at Genoa, Italy
May 25, 1916
Subbranches at Turin, Milan, Venice, Florence, Rome,
Naples, and Palermo, Italy
May 25, 1916
Branch at Petrograd, Russia
July
5, 1916
Subbranches at Moscow, Odessa, Warsaw, Riga, Baku,
Astrakhan, Vladivostok, Sebastopol, Helsingfors, and
Vilna, Russia
July
5, 1916
Branch at Lima, Peru
July 31, 1917
Subbranches at Payta, Callao, and Mollendo, Peru
—July 31, 1917
Branch at Caracas, Venezuela
July 31, 1917
Subbranches at La Guayra, Porto Cabello, and Maracaybo___
July 31, 1917
Commercial National Bank, Washington, D. C.:
Branch at Panama City, Panama
Jan.
12, 1915
Branch at Cristobal, Canal Zone
Nov. 30, 1914
First National Bank, Boston, Mass.:
Branch at Buenos Aires, Argentina
Jan.
29, 1917
1

34365°—18




Made an independent branch Dec. 8, 1917.
13

187

Exhibit L.—LIST OF NATIONAL BANKS GIVEN FIDUCIARY
POWERS FROM JAJNXTARY 1, 1917, TO DECEMBER 31,
1917,
DISTRICT N. 1.
Location.
Maine:
Bar Harbor
Massachusetts:
Boston
Brockton
Edgartown
Haver hill
Gardner
Leominster
Lynn
Plymouth
Wareham
Worcester
New Hampshire:
Concord
Vermont:
Brattleboro
Windsor

Name of bank.
First National Bank

Powers granted.
Trustee, executor, administrator, and
registrar of stocks and bonds.

Webster & Atlas National Bank..
Do.
Home National Bank
Do.
Edgartown National Bank
Trustee, executor, and administrator.
Merrimack National Bank
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
First National Bank
Do.
Merchants National Bank
Do.
Manufacturers National Bank
Do.
Plymouth National Bank
Do.
National Bank of Wareham
Do.
Mechanics National Bank
National State Capital Bank
Vermont National Bank
State National Bank

Do.
Trustee, executor, and administrator.
Do.

DISTRICT NO. 2.
Connecticut:
Bridgeport...
New Jersey:
Paterson
Phillipsburg.
Red Bank.
Somerville.
Sussex
New York:
New York.
Do
Oneida

First-Bridgeport National Bank... Registrar of stocks and bonds.
Paterson National Bank
Do.
Trustee, executor, administrator, and
Phillipsburg National Bank
registrar of stocks and bonds.
Second National Bank
Do.
do..
Do.
Farmers National Bank
Do.
Registrar of stocks and bonds.
Atlantic National Bank
Mechanics & Metals National Bank
Do.
Oneida Valley National Bank
Do.
DISTRICT NO. 3.

New Jersey:
Camden

National State Bank

Pennsylvania:
Maytown
Myerstown
Philadelphia
Do...
Topton
West Grove
Wilkes-Barre
Williamsport

Maytown National Bank
Myerstown National Bank
Eighth National Bank
Philadelphia National Bank
National Bank of Topton
National Bank of West Grove
Second National Bank
West Branch National Bank

188




Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.
Do.

Registrar of stocks and bonds.
Trustee, executor, and administrator.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

189

DISTRICT NO. 4.
Name of bank.

Powers granted.

First-Second National Bank
First National Bank
do
Union National Bank
Citizens National Bank
Painesville National Bank
German National Bank of Allegheny.
First National Bank

Trustee and registrar of stocks and
bonds.
Registrar of stocks and bonds.
Trustee and registrar of stocks and
bonds.
Registrar of stocks and bonds.
Do.
Do.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Trustee.

Location.
Ohio:
Akron
Canton
Cleveland
Do
Mansfield
Painesville
Pennsylvania:
Pittsburgh
West Virginia:
New Cumberland

DISTRICT NO. 5.
Maryland:
Hyattsville.
Rising Sun..
North Carolina:
Newbern—
Virginia:
Appalachia..
Danville
West Virginia:
Clarksburg.

First National Bank
National Bank of Rising Sun.
National Bank of Newbern....
First National Bank
...do
Union National Bank

Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.
Trustee.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.

DISTRICT NO.
Alabama:
Cullman
St. Petersburg
Do
Georgia:
Atlanta
Macon
Louisiana:
Alexandria

Leeth National Bank
Central National Bank
First National Bank
Lowry National Bank
Fourth National Bank
First National Bank

Trustee, executor, administrator, and
registrar of stocks and bonds.
Trustee, executor, and administrator.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.
Do.

DISTRICT NO. 7.
Indiana:
Crawfordsvile .
Mishawaka
Monrovia
Muncie
Iowa:
Council Bluffs..
Decorah
Dubuque
Emmetsburg...
Gladbrook......
Kanawha
Manchester
Red Oak
Waverly
Michigan:
Battle Creek
Benton Harbor..
Birmingham.
Flint
Lansing.



Citizens National Bank .
First National Bank
do
Merchants National Bank.
First National Bank
National Bank of Decorah
First National Bank
Emmetsburg National Bank.
FirstNational Bank
....do
do
.do.
.do.

Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Trustee, executor, and administrator.
Do.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.

Central National Bank
Do.
Farmers & Merchants National Trustee, executor, and administrator.
Bank.
First National Bank
Trustee, executor, administrator, and
registrar of stocks and bonds.
First National Bank ..
Do.
Capital National Bank.
Do.

190

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
DISTRICT NO. 8.
Location.

Arkansas:
Fordyce
Marianna
Illinois:
Metropolis
Indiana:
Mitchell
Kentucky:
Bowling Green
Missouri:
St. Louis
Springfield

Powers granted.

Name of bank.
First National Bank
Lee County National Bank
City National Bank
First National Bank
American National Bank
National Bank of Commerce
Union National Bank

Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.
Do.
Trustee and registrar of bonds.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.

DISTRICT NO.
South Dakota:
Arlington..
Sioux Falls..

First National Bank
Minnehaha National Bank.

Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.

DISTRICT NO. 10.
Colorado:
Fort Collins.
Hugo..
Kansas:
Luray..
Salina..
Missouri:
Kansas City.
Nebraska:
Norfolk
Omaha
Ord
Oklahoma:
McAlester
Oklahoma City.
Wyoming:
Buffalo
Caster.

First National Bank.,
....do
.do.
Farmers National Bank
First National Bank
Norfolk National Bank
United States National Bank..
First National Bank
American National Bank
Farmers National Bank
First National Bank
Casper National Bank

Trustee, executor, administrator, and
registrar of stocks and bonds.
Trustee, executor, and administrator.
Do.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Trustee, executor, and administrator.
Registrar of stocks and bonds.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Trustee.
Do.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.

DISTRICT NO. 11.
Louisiana:
Shreveport.
New Mexico:
Carlsbad
Roswell....
Texas:
Campbell
Dallas
Orange
Palestine
San Angelo

Commercial National Bank

Trustee, executor, administrator, and
registrar of stocks and bonds.

Do.
First National Bank . .
Citizens National Bank
Trustee, executor, and administrator.
Do.
Campbell National Exchange
B*\nk
Tenison National Bank
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
First National Bank
Do.
Royall National Bank
San Angelo National Bank
Trustee, executor, and administrator.

DISTRICT NO. 12.
Idaho:
Boise City.
Moscow
Oregon:
Marshfield
Utah:
Salt Lake City.
Washington:
Colfax



Boise City National Bank.
First National Bank

Registrar of stocks and bonds.
Trustee, executor, administrator, and
registrar of stocks and bonds.

First National Bank of Coos Bay.. Registrar of stocks and bonds.
Continental National Bank........ Trustee, executor, administrator, and
registrar of stocks and bonds.
Farmers National Bank.

Do.

Exhibit M.—ACCEPTANCES TO 100 PER CENT.
The following banks have been granted authority by the Federal
Reserve Board to accept drafts and bills of exchange up to 100 per
cent of their capital and surplus. This list includes all banks which
have been granted such powers up to and including December 31,
1917:
District No. 1—
Hartford Aetna National Bank, Hartford, Conn.
Massasoit-Pocasset National Bank, Fall River, Mass.
First National Bank, Boston, Mass.
Second National Bank, Boston, Mass.
Merchants National Bank, Boston, Mass.
National Shawmut Bank, Boston, Mass.
Old Colony Trust Co., Boston, Mass.
Webster & Atlas National Bank, Boston, Mass.
National Union Bank, Boston, Mass.
Safety Fund National Bank, Fitchburg, Mass.
Mechanics National Bank, New Bedford, Mass.
Merchants National Bank, Worcester, Mass.
Blackstone Canal National Bank, Providence, R. I.
District No. 2—
American Exchange National Bank, New York City.
Bank of New York, N. B. A., New York City.
Atlantic National Bank, New York City.
Mechanics & Metals National Bank, New York City.
Irving National Bank, New York City.
National City Bank, New York City.
National Bank of Commerce, New York City.
Harriman National Bank, New York City.
Chemical National Bank, New York City.
Chase National Bank, New York City.
Corn Exchange Bank, New York City.
National Park Bank, New York City.
Citizens National Bank, New York City.
Guaranty Trust Co., New York City.
Liberty National Bank, New York City.
Central Trust Co., New York City.
Bankers Trust Co., New York City.
Equitable Trust Co., New York City.
Importers & Traders National Bank, New York City.
W. R. Grace & Co.'s Bank, New York City.
Franklin Trust Co., New York City.
Seaboard National Bank, New York City.
Columbia Trust Co., New York City.
Mercantile Bank of the Americas, New York City.
First National Bank, Utica, N. Y.




191

192

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

District No. 3—
Philadelphia National Bank, Philadelphia, Pa.
Tradesmen's National Bank, Philadelphia, Pa.
Fourth Street National Bank, Philadelphia, Pa.
Girard National Bank, Philadelphia, Pa.
Market Street National Bank, Philadelphia, Pa.
District No. 4—
Fifth-Third National Bank, Cincinnati, Ohio.
Union National Bank, Cleveland, Ohio.
First National Bank, Cleveland, Ohio.
Cleveland Trust Co., Cleveland, Ohio.
Union Trust Co., Pittsburgh, Pa.
District No. 5:
Merchants-Mechanics' First National Bank, Baltimore, Md.
Farmers & Merchants' National Bank, Baltimore, Md.
Murchison National Bank, Wilmington, N. C.
Bank of Charleston, N. B. A., Charleston, S. C.
People's National Bank, Charleston, S. C.
First National Bank of Danville, Va.
Merchants' National Bank, Hampton, Va.
Norfolk National Bank, Norfolk, Va.
Seaboard National Bank. Norfolk, Va.
Merchants' National Bank, Richmond, Va.
American National Bank, Richmond, Va.
First National Bank, Richmond, Va.
District No. 6:
Central National Bank, Albany, Ala.
Farmers & Merchants' National Bank, Troy, Ala.
American National Bank, Cordele, Ga.
Fourth National Bank, Macon, Ga.
National Bank of Savannah, Ga.
Savannah Bank & Trust Co., Savannah, Ga.
Whitney-Central National Bank, New Orleans, La.
Commercial National Bank, New Orleans, La.
New Orleans National Bank, New Orleans, La.
District No. 7:
First National Bank, Chicago, 111.
National Bank of the Republic, Chicago, 111.
Continental & Commercial National Bank, Chicago, 111.
Merchants' Loan & Trust Co., Chicago, 111.
District No. 8:
First National Bank, Canton, Miss.
District No. 10:
First National Bank, Hutchinson, Kans.
First National Bank, St. Joseph, Mo.
District No. 11:
American Exchange National Bank, Dallas, Tex.
Tenison National Bank, Dallas Tex.
City National Bank, Dallas, Tex.
American National Bank, Fort Worth, Tex.
South Texas Commercial National Bank, Houston, Tex.




ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
District No. 12:
First National Bank, Portland, Oreg.
Northwestern National Bank, Portland, Oreg.
Anglo & London-Paris National Bank, San Francisco, Cal.
First National Bank, San Francisco, Cal.
Wells-Fargo Nevada National Bank, San Francisco, Cal.
Bank of California, N. A., San Francisco, Cal.
Crocker National Bank, San Francisco, Cal,
American National Bank, San Francisco, Cal.
National Bank of Commerce, Seattle, Wash.




193

Exhibit N—PERSONNEL AND SALARIES.
Salaries of officers and employees of Federal Reserve

Banks.

FEDERAL RESERVE BANK OF BOSTON.
Number of officers
and employees.

Salaries.

Departments.
1915

Total.

20

1917

1915

1916

1917

1
1
5
55
17
30
4
112
23

$10,000
15,000
8,500
6,100
3,100
2,100
2,500

$10,000
20,000
10,900
15,260
11,360
24,460
3,680

13

Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department
Transit department.:
Federal Reserve agent's department..
Fiscal agency department
General

1916

3,580

10,280

$12,000
20,000
17,500
57,700
16,530
24,964
7,100
106,200
20,378

71

248

50,880

105,940

288,372

$16,000
15,000
20,000
42,000
97,552
10,700
36,480

$20,000
30,000
45.000
56,200
301,648
15,360
94,480
9,520

FEDERAL RESERVE BANK OF NEW YORK.
Chairman and Federal Reserve agent.
Governor
Deputy governor *
Other officers
Banking department
Bookkeeping department
'...
Transit department
Federal Reserve agent's department..
Fiscal agency department:
Bond issue
Certificates of indebtedness
Government deposit
General
-

1
1
2
8
287
15
168
6
213
34
52
42
73

Total.

173

$16,000
30,000
32,800
60,588
4,620
6,430

5,540 I
155,978

8,460

248,284
45,340
67,308
37,440

246,192

970,580

$10,000
20,000
10,200
15,940
9,360
24,180
7,140

F E D E R A L R E S E R V E BANK OF P H I L A D E L P H I A .

Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department..
Fiscal agency department
General
Total.

$10,000
20,000
5,000
14,400
3,300
5,880
5,976
19

25

12,480

14,672

192

23

45

$10,000
20,000
21,250
34,084
18,080
47,790
8,060
23,160
16,848

77,036

111,492

199,272

$10,000
20,000
10, 750
13,430
4,380
23,370
3,780

FEDERAL RESERVE BANK OF CLEVELAND.
Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department..
Fiscal agency department
General

1
1

$10,000
18,000
7,000
16,900
5,160
1,080
3,500

10

10

6,900

8,040

31

Total.

$12,000
20,000
21,050
23,800
19,080
52,710
7,820
87,180
16,440

65

68,540

93,750

260,080

3

n
36|
2

» Total deputy governors, 3; one serving without pay.

194




195

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Salaries of officers and employees of Federal Reserve Banks—Continued.
FEDERAL RESERVE BANK OF RICHMOND.
Number of officers
and employees.

Salaries.

Departments.
1916 1917

Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department..
Fiscal agency department
General

1916

1917

$10,000
12,000
9,428
13,956
5,520
11,599
916

6,439
30

Total.

1915
$10,000
10,000
5,978
12,742
4,748
2,278
945

1915

63

109

8,819

$10,000
15,000
14,550
22,880
4,980
21,954
2,400
21,024
8,540

53,130

72,238

121,328

FEDERAL RESERVE BANK OF ATLANTA (INCLUDING NEW ORLEANS BRANCH).
Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department..
Fiscal agency department
General
Total.

$7,500
9,000
13,100
23,928
3,600
1,260
3,200
3,180
41

65

132

$9,000
9,000
12,060
21,828
5,100
15,900
4,380
4,0

$10,000
10,000
11,380
37,690
6,480
20,180
5,220
61,010
3,120

64,768

81,348

165,080

$10,000
20,000
14,000
21,426
4,100
8,700
7,200

$10,000
20,000
17,500
31,880
8.700
30; 240
7,800

11,134

20,985

$10,000
24,000
33,500
47, 880
9,520
49,280
13,800
215, 930
61,130

96,560

147,105

465,040

F E D E R A L R E S E R V E BANK O F CHICAGO.

Chairman and Federal Reserve agent.
Governor
„
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department. Fiscal agency department
General

21

50

Total.

13

1
1
7
36
10
61
5
166
77

110

364

33

F E D E R A L R E S E R V E B A N K OF ST. LOUIS (INCLUDING LOUISVILLE BRANCH).

Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department. Fiscal agency department
General
*
Total.

2,820

$10, 000 $10,000
20,000 20,000
13,500 35,500
17,180 44,500
6,260
5,900
16,140 34,620
5,900
3,340
65, 840
2,820
4,920

80, 900

91,800 224,620

$10,000
20,000
13,500
12,820
6,200
9,660
5,900

39

53

177

FEDERAL RESERVE BANK OF MINNEAPOLIS.
Chairman and Federal Reserve agent..
Governor
Other officers
Banking department
Bookkeeping department
Transit department
Federal Reserve agent's department. Fiscal agency department
Total.



$7,500
15,000
3,000
11,940
2,460
2,000
5,520
20

54

127

$9,000
15,000
3,500
15,850
5,540
19,460
4,080

$10,000
18, 000
12,500
29,120
6,040
24,040
4,580
51,180

47,420

72,430

155,460

196

ANNUAL BEPORT OF THE FEDERAL RESERVE BOARD.
Salaries of officers and employees of Federal Reserve Banks—Continued.
FEDERAL RESERVE BANK OF KANSAS CITY.
Number of officers
and employees.

Salaries.

Departments.

Chairman and Federal Reserve agent.
Governor
Other officers
Bookkeeping department
Transit department
Federal Reserve agent's department..
Fiscal agency department
General
Total..

1916

1917

1915

1916

1917

$7,500
7,500
6,000
6,120

1915

$7,500
10,000
8,800
4,500
18,780
4,380

$7,500
12,500
17,400
5,340
22,960
7,680
93,190
27,020

10,980
4,080
15

27

13,460

153

55,640

18,460
72,420 193,590

$7,500
10,000
11,000
17,140
1,620
2,100
7,400

12

40

$9,
10,
15,
17,
5,
20,
3,

FEDERAL RESERVE BANK OF DALLAS.
Chairman and Federal Reserve agent.
Governor
Other officers
Banking department
Bookkeeping department.
Transit department
Federal Reserve agent's department..
Fiscal agency department
General

10

12

10

9,060

31

Total.

$10,000
12,000
19,700
39,300
6,360
33,140
3,700
60,690
7,580
11,680

63

170

65,820

93,000 192,470

FEDERAL RESERVE BANK OF SAN FRANCISCO (INCLUDING SPOKANE, PORTLAND,
AND SEATTLE BRANCHES.)
Chairman and Federal Reserve agent.
Governor
Other officers
Tellers
Discount department
Transit department
Bookkeeping department
General
Auditixig department
Federal Reserve agent's department...
Fiscal agency department
Total.

1
1
10
11
8
31
17
61
8
3
122
22

62

$12,000
15,000
10,200
4,200
2,820
780
2,520
7,200
2,400
7,000

$12,000
15,000
12,200
4,860
2,880
11,640
4,620
23,810
3,300
1,620

$14,000
18,000
39,500
15,240
11,460
28,740
18,240
63,140
12,186
3,420
146,100

273

64,120

91,930

370,026

SALARIES or OFFICERS AND EMPLOYEES OF THE FEDERAL RESERVE BOARD AS OF
DECEMBER 31, 1917.
OFFICE OF THE SECRETARY.

H. Parker Willis, secretary
Sherman Allen, assistant secretary and fiscal agent
1 at $2,250
1 at $2,100
1 at $1,500
2 at $1,440
1 at $1,320
1 at $1,200
1 at $1,000
2 at $900
~,

™.

5 at $2,700
1 at $1,800
5 at $1,440



$9, 000
6, 000
2,250
2,100
1,500
2,880
1,320
1,200
1,000
1, 800

$29, 050

OFFICES OF MEMBERS OF THE BOARD.

13, 500
1, 800
7, 200
22, 500

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

197

OFFICE OF COUNSEL.

Milton C. Elliott, counsel
J. P. Cotton, consulting counsel
Staff:
1 at $4,500
1 at $2,100
_"
1 at $1,800
1 at $1,440
1 at $1,320

$9, 000
2, 000
4, 500
2,100
1,800
1,440
1, 320
$22,160

DIVISION OF AUDIT AND EXAMINATION.

Joseph A. Broderick, chief of division
2 at $3,600
1 at $2,800
1 at $1,600
2 at $1,500
3 at $1,320
1 at $1,200
1 at $420

7, 200
7,200
2, 800
1,600
3,000
3,960
1,200
420
27,380

DIVISION OF REPORTS AND STATISTICS.

Morris Jacobson, chief of division
Staff:
1 at $2,250
1 at $2,000
1 at $1,800
3 at $1,650
1 at $1,500
1 at $1,400
1 at $1,200
1 at $1,000
1 at $3 per diem.

4,200
2,250
2, 000
1,800
4, 950
1,500
1, 400
1,200
1,000
20,300
121, 390

DIVISION OF FOEEIGN EXCHANGE.

Staff:
1 at $4,000
1 at $1,320

4,000
1,320
-

O, o^U

DIVISION OF ISSUE AND REDEMPTION.

Willard E. Buell, chief of division
Staff:
1 at $1,900
1 at $1,320
1 at $1,200
3 at $960
4 at $900
i

2, 500
1,900
1, 320
1, 200
2,880
3, 600
13,400

MESSENGERS.

2 at $900
5 at $840

1, 800
4, 200
6,000
CHARWOMEN.

3 at $264
Total



792
•__ 146, 902

198
SALARIES

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
OF NATIONAL-BANK

EXAMINERS EFFECTIVE IN
DEC. 31, 1917.

THE YEAR

ENDING

Stephen L. Newnham, supervising examiner, not assigned to any
Federal Reserve District

$4, 200
DISTRICT NO. 1—BOSTON.

(3S0 national member banks.)
James D. Brennan, chief examiner
2 examiners, at $3,600; 1 examiner, at $3,000; 1 examiner, at
$2,700; 1 examiner, at $2,400

$8, 000
15.300
23,300

DISTRICT NO. 2

NEW YORK.

(624 national member banks.)
William P. Malburn, chief examiner
1 examiner, at $4,200; 1 examiner, at $3,900; 1 examiner, at
$3,600; 2 examiners, at $3,300; 2 examiners, at $3,000; 3
examiners, at $2,700

15, 000
32, 400
47,400

DISTRICT NO. 3—PHILADELPHIA.

(631 national member banks.)
Edward I. Johnson, chief examiner
8, 000
1 examiner, at $4,500; 1 examiner, at $4,200; 1 examiner, at
$3,600; 1 examiner, at $3,300; 2 examiners, at $3,000; 1
examiner, at $2,700; 3 examiners, at $2,400
31.500
• 39, 500
DISTRICT NO. 4

CLEVELAND.

(750 national member banks.)
Silas H. L. Cooper, chief examiner
1 examiner, at $5,500; 3 examiners, at $3,900; 2 examiners, at
$3,600; 1 examiner, at $2,700; 3 examiners, at $2,400

8.000
34.300
42,300

DISTRICT NO. 5—RICHMOND.

(518 national member banks.)
James K. Doughton, chief examiner
6,500
1 examiner, at $6,000; 4 examiners, at $3,300; 3 examiners, at
$3,000; 2 examiners, at $2,700; 1 examiner, at $2,400
36, 000
•
42,500
DISTRICT NO. 6

ATLANTA.

(372 national member banks.)
Elmore F. Higgins, chief examiner
1 examiner, at $3,600; 3 examiners, at $3,000; 1 examiner, at
$2,400
.

6, 500
15, 000
21,500

DISTRICT NO. 7—CHICAGO.

(1,042 national member banks.)
Sherrill Smith, chief examiner
12, 000
1 examiner, at $5,000; 1 examiner, at $4,200; 1 examiner, at
$3,900; 1 examiner, at $3,600; 3 examiners, at $3,300; 5 examiners, at $3,000; 2 examiners, at $2,700; 3 examiners,
at $2,400
54, 200

•
66, 200


ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
DISTRICT NO. 8

199

ST. LOUIS.

(466 national member banks.)
Joseph M. Logan, chief examiner
$7, 500
2 examiners, at $4,200; 1 examiner, at $3,600; 1 examiner, at
$3,300; 1 examiner at $3,000; 3 examiners, at $2,400
25, 500
DISTRICT NO. 9

$33, 000

MINNEAPOLIS.

(764 national member banks.)
Peter M. Kerst, chief examiner
8, 000
2 examiners, at $3,900; 1 examiner, at $3,600; 1 examiner, at
$3,300; 2 examiners, at $3,000; 3 examiners, at $2,400
27, 900
DISTRICT NO. 10

35,900

KANSAS CITY.

(948 national member banks.)
Jay D. Rising, chief examiner
6, 500
2 examiners, at $3,900; 1 examiner, at $3,600; 2 examiners, at
$3,300; 1 examiner, at $3,000; 3 examiners, at $2,700; 5 examiners, at $2,400
-,
41,100
47,600
DISTRICT NO. 11

DALLAS.

(619 national member banks.)
Richard H. Collier, acting chief examiner
4, 500
1 examiner, at $3,900; 2 examiners, at $3,300; 2 examiners, at
$3,000; 1 examiner, at $2,700; 1 examiner, at $2,400
21, 600
DISTRICT NO. 12

26,100

SAN FRANCISCO.

(534 national member banks.)
Claud Gatch, chief examiner
8,500
1 examiner, at $6,000; 2 examiners, at $4,500; 1 examiner,
at $3, 900; 1 examiner, at $3,300; 4 examiners, at $2,700; 3
examiners, at $2,400
40.200
48, 700
Total

478, 200
RECAPITULATION.

Examining staff:
Chief examiners—
At $15,000 per annum
At $12,000 per annum
At $8,500 per annum
At $8,000 per annum
At $7,500 per annum
At $6 500 per annum
At $4,500 per annum

1
1
1
4
1
3
3
1

Total chief examiners
Salaries, chief examiners




12
99,000
1

Acting.

200

ANNUAL REPORT OF THE FEDERAL RESERVE BOAJEtD.
Other examiners—
At $6,000 per annum
At $5,500 per annum
At $5,000 per annum
At $4,500 per annum
At $4,200 per annum
At $3,900 per annum
At $3,500 per annum
At $3,300 per annum
At $3,000 per annum
At $2,700 per annum
At $2,400 per annum

Total other examiners
Salaries, other examiners
Total examining staff
Total salaries




1

Includes 1 supervising examiner.

2
1
1
3
*6
11
11
17
22
18
27
119
$379, 200
131
478, 200

Exhibit O.—DIRECTORY OF THE FEDERAL RESERVE
BOARD AND FEDERAL RESERVE BANKS.
FEDERAL RESERVE BOARD.
W. P. G. HARDING, Governor.
PAUL M. WARBURG, Vice Governor.

EX OFFICIO MEMBERS.
WILLIAM G. MCADOO,

Secretary of the Treasury,
Chairman.

FREDERIC A. DELANO.
ADOLPH G. MILLER.
CHARLES S. HAMLIN.

JOHN SKELTON WILLIAMS,

Comptroller of the Currency.
H. PARKER WILLIS, Secretary.
SHERMAN ALLEN, Assistant Secretary

and Fiscal Agent.
M. C. ELLIOTT, Counsel.

OFFICERS AND DIRECTORS OF FEDERAL RESERVE BANKS.
DISTRICT NO. l . - F E D E R A L R E S E R V E BANK OF BOSTON.
[Frederic H . Curtiss, chairman and Federal Reserve Agent. Allen Hollis, deputy chairman. Chas.
A. Morss, governor.]
D irector.
Class A:
T P Beal .
Thomas W. Farnam
A M Heard
Class B:
Chas A Morss
E R Morse
Chas. G. Washburn
Class C:
Frederic H Curtiss
Allen Hollis . .

Residence.

Term expires.

Boston, Mass
New Haven, Conn
Manchester N. H
.

...

Dec. 31,1920
Dec. 31 1919
Dec. 31,1918

Boston, Mass.
Proctor Vt
Worcester, Mass

Dec. 31 1920
Dec. 31,1919
Dec. 31 1918

Boston Mass
Coneord, N . H

Dec. 31,1920
Dec. 31,1918

DISTRICT NO. 2 . - F E D E R A L R E S E R V E BANK OF N E W YORK.
[Pierre Jay, chairman and Federal Reserve Agent. George F . Peabody, deputy chairman and deputy
reserve agent. Benjamin Strong, jr., governor.]
Director.
Class A:
William Woodward
R. H. Treman
F. D. Locke
Class B:
H. R. Towne
W. B. Thompson
L. R. Palmer
Class C:
Pierre Jay
George F . Peabody
W. L. Saunders




Residence.

Term expires.

New York, N . Y
Ithaca, N . Y
Buffalo, N. Y

Dec. 31,1919
Dec. 31,1920
Dec. 31,1918

New York, N. Y
Yonkers, N . Y
Croton-on-Hudson, N. Y

Dec. 31,1919
Dec. 31,1920
Dec. 31,1918

New York, N . Y
Lake George, N . Y
New York, N . Y

Dec. 31,1919
Dec. 31,1918
Dec. 31,1920

201

202

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

DISTRICT NO. 3.-FEDERAL RESERVE BANK OF PHILADELPHIA.
[Richard L. Austin, chairman and Federal Reserve Agent. H. B. Thompson, deputy chairman.
Charles J. Rhoads, governor.]
Director.
Class A:
Joseph Wayne, jr
W. H. Peck
M. J. Murphy
Class B:
A. B. Johnson
E. S. Stuart
G. W. F. Gaunt
Class C:
Richard L. Austin
H.B.Thompson
Chas. C. Harrison

Residence.
Philadelphia, Pa
Scranton, Pa
Clarks Green, Pa.,
Philadelphia, Pa
do
MullicaHill, N. J
Philadelphia, Pa
Wilmington, Del..
Philadelphia, Pa

Term expires.
Dec. 31,1920
Dec. 31,1918
Dec. 31,1919
Do.
Dec. 31,1920
Dec. 31,1918
Dec. 31,1920
Dec. 31,1919
Dec. 31,1918

DISTRICT NO. 4.-FEDERAL RESERVE BANK OF CLEVELAND.
[D. C. Wills, chairman and Federal Reserve Agent. Lyman H. Treadway, deputy chairman. E. R.
Fancher, governor.]
Director.
Class A:
Robert Wardrop
W. S. Rowe
S. B. Rankin
Class B:
T. A. Combs
R.P.Wright
John Stambaugh
Class C:
D C Wills
Lyman H. Treadway
H. P. Wolfe

Residenco.

Term expires.

Pittsburgh, Pa
Cincinnati, Ohio
South Charleston, Ohio
Lexington, Ky
Erie, Pa
Youngstown, Ohio
Bellevue, Pa . . . .
Cleveland, Ohio
Columbus Ohio..

Dec. 31,1920
Dec. 31,1919
Dec. 31,1918
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

31,1920
31,1919
31,1918
31,1920
31,1919
31,1918

DISTRICT NO. 4.-CINCINNATI BRANCH OF FEDERAL RESERVE BANK OF CLEVELAND.
[L. W. Manning, manager.]
Director.

Residence.
Cincinnati, Ohio.
do
do
do
do

W. S. Rowe
L. W. Manning..
W. C Procter....
Judson Harmon..
Chas. A. Hinsch.

Term expires.
Dec. 31,1918
Do.
Do.
Do.
Do.

DISTRICT NO. 4. -PITTSBURGH BRANCH OF FEDERAL RESERVE BANK OF
CLEVELAND.
[George De Camp, manager.]
Director.
R.B.Mellon.....
Chas. W. Brown.
James D. Callery.
T. H. Given
George De Camp..




Residence.
Pittsburgh, Pa..
.do.
.do.
.do.,
.do..

Term expires.
Dec. 31,1918
Do.
Do.
Do.
Do.

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD..

203

DISTRICT NO. 5.—FEDERAL RESERVE BANK OF RICHMOND.
[Caldwell Hardy, chairman and Federal Reserve Agent. James A. Moncure, deputy chairman.
George J. Seay, governor.]
Director.

Residence.

Class A:
H. B. Wilcox
J. F. Bruton
Edwin Mann
Class B:
Edmund Strudwick
D.R.Coker
D. F. Oyster
Class C:
James A. Moncure
Caldwell Hardy

Baltimore, Md
Wilson, N. C
Bluefield, W. Va
Richmond, Va
Hartsville, S. C
Washington, D. C
Richmond, Va
Norfolk, Va

Term expires.
Dec. 31, 1918
Dec. 31, 1919
Dec. 31, 1920
Dec. 31, 1918
Dec. 31, 1920
Dec. 31, 1919
Do.
Dec. 31, 1920

DISTRICT NO. 6-FEDERAL RESERVE BANK OF ATLANTA.
[M. B. Wellborn, chairman and Federal Reserve Agent. Edward T. Brown, deputy chairman.
Joseph A. McCord, governor.]
Director.

Residence.

Class A:
L. P. Hillver
F. W. Foote
P. R. Kittles
Class B:
Edgar B. Stern
J. A. McCrary
W. H. Hartford
Class C:
M. B. Wellborn
Edward T. Brown
W. H.Kettig

Macon, Ga
Hattiesburg, Miss
Sylvania, Ga
New Orleans, La
Decatur, Ga
Nashville, Term
Anniston, Ala
Atlanta, Ga
Birmingham, Ala

Term expires.
Dec. 31, 1918
Dec. 31, 1919
Dec. 31, 1920
Do.
Dec. 31, 1918
Dec. 31, 1919
Dec. 31, 1920
Dec. 31, 1918
Dec. 31, 1919

DISTRICT NO. 6—NEW ORLEANS BRANCH OF FEDERAL RESERVE BANK OF ATLANTA.
[James E. Zunts, chairman. Marcus Walker, manager. W. D. Wellborn, Representative Federal
Reserve Agent.]
Director.
Frank Roberts
J. E. Bouden, Jr
J . J. G annon
H .B. Lightcap
Edgar B. Stern
A P Bush
Jas. E. Zunts

Residence.
.

*

Lake Charles, La
New Orleans, La
. . do
Jackson, Miss
New Orleans, La
Mobile, Ala
New Orleans, La

Term expires.
Dec. 31, 1918
Do.
Do.
Do.
Do.
Do.
Do.

DISTRICT NO. 7.—FEDERAL RESERVE BANK OF CHICAGO.
[William A. Heath, chairman and Federal Reserve Agent. James Simpson, deputy chairman. James
B. McDougal, governor.]
Director.
Class A:
Geo. M. Reynolds
J. B. Forgan
E. L. Johnson.
Class B:
John W. Blodgett
M. B. Hutchison
A. H. Vogel
Class C:
William A. Heath
James Simpson
E. T. Meredith
34365°-—18



Residence.
Chicago, 111
do
Waterloo, Iowa
Grand Rapids, Mich
Ottumwa, Iowa
Milwaukee, Wis
Evanston, 111
Chicago, 111
Des Moines, Iowa

Term expires.
Dec. 31, 1918
Dec. 31, 1919
Dec. 31, 1920
Dec. 31, 1919
Dec. 31, 1920
Dec. 31, 1918
Do.
Dec. 31, 1920
Dec. 31, 1919

204

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

DISTRICT NO. 7—DETROIT BRANCH OF FEDERAL RESERVE BANK OF CHICAGO.
[Robert B. Locke, manager.]
Director.
Robert B. Locke
John Ballantyne - Chas. H. Hodges.. .
Emory W. Clark
Julius H. Haass .

Residence.
Detroit, Mich...
. .do....
do
do
.do. . ..

.

Term expires.
Dec. 31, 1918
Do
Do.
Do.
Do.

DISTRICT NO. 8.—FEDERAL RESERVE BANK OF ST. LOUIS.
[William McC. Martin, chairman and Federal Reserve Agent. Holla Wells, governor.]
Residence.

Director.
Class A:
Walker Hill
F.O. Watts . .
Sam A. Ziegler
Class B:
David C. Biggs
W. B. Plunkett.
Leroy Percy
Class C:
W. McC. Martin
John W. Boehne
C. P. J. Mooney

St Louis, Mo
.do . ...
Albion, 111
St. Louis, Mo
Little Rock, Ark .
Greenville, Miss

.

Term expires.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

St. Louis, Mo
Evansville, Ind
Memphis, Tenn

31,1920
31,1918
31,1919
31,1918
31,1919
31,1920
31,1918
31,1920
31,1919

DISTRICT NO. 8.—LOUISVILLE BRANCH OF FEDERAL RESERVE BANK OF ST. LOUIS.
[W. P. Kincheloe, manager.]
Director.

Residence.
Louisville Kv

George W. Norton
W P. Kincheloe
F. M. Sackett
W C. Montgomery
Chas E Hoge

. . .

Term expires.
Dec 31 1918
Do.
Do.
Do.
Do.

do

.do
Elizabeth town, Kv
Frankfort Kv

DISTRICT NO. 9.—FEDERAL RESERVE BANK OF MINNEAPOLIS.
[John H. Rich, chairman and Federal Reserve Agent. Wm. II. Lightner, deputy chairman. Theodore
Wold, governor.]
Director.
Class A:
E.W. Decker
L. B. Hanna
J. C. Bassett
Class B:
F R Bigelow
F. P.IIixon
N. B. Holter
Class C:
John II. Rich
Wm II I/ightner
John W. Black




Residence.
Minneapolis, Minn
Fargo, N. Dak
Aberdeen, S. Dak
St. Paul, Minn .
La Crosse, Wis
Helena, Mont
Red Wing, Minn
St. Paul, Minn
Houghton, Mich

. .

Term expires.
Dec. 31,1919
Dec. 31,1920
Dec. 31,1918
Dec. 31,1919
Dec. 31,1918
Dec. 31,1920
Do.
Dec. 31,1918
Dec. 31,1919

205

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

DISTRICT NO. 10.—FEDERAL RESERVE BANK OF KANSAS CITY.
[Chas. M. Sawyer, chairman and Federal Reserve Agent. F. W. Fleming, deputy chairman. J. Z.
Miller, jr., governor.]
Director.
Class A:
J.C.Mitchell
W. J. Bailey
C. E.Burnham
Class B:
M. L. McClure
T.C. Byrne
Harry W. Gibson
Class C:
Asa E. Ramsay
F. W. Fleming
R. H. Malone

Residence.
Denver, Colo..
Atchison, Kans..
Norfolk, Nebr
Kansas City, Mo.
Omaha, Nebr
Muskogee, Okla..
Kansas City, Mo.
.do.
Denver, Colo

Term expires.
Dec. 31,1918
Dec. 31,1919
Dec. 31,1920
Dec. 31,1919
Dec. 31,1918
Dec. 31,1920

Do.
Dec. 31,1919
Dec. 31,1918

DISTRICT NO. 10.—DENVER BRANCH OF FEDERAL RESERVE BANK OF KANSAS CITY.
[C. A. Burkhardt, manager.]
Residence.

Director.
Denver. Colo
do
do
....do
Pueblo, Colo.

C.C. Parks
A A Foster
C C Burkhardt
John Evans
Alva Adams

Term expires.
Dec. 31,1918
Do.
Do.
Do.
Do.

DISTRICT NO. 10.—OMAHA BRANCH OF FEDERAL RESERVE BANK OF KANSAS CITY.
[O. T. Eastman, manager.]
Director.

Residence.
Omaha, Nebr

Luther Drake
J C McNish
O T Eastman
P L Hall
R. O.Marnell...

.do
do

Lincoln Nebr
Nebraska City, Nebr

Term expires.
Dec. 31,1918
Do.
Do.
Do
Do.

DISTRICT NO 11.—FEDERAL RESERVE BANK OF DALLAS.
[W. F. Ramsey, chairman and Federal Reserve Agent. W. B. Newsome, deputy chairman. R. L.
Van Zandt, governor.]
Director.
Class A:
J. T. Scott
E. K. Smith
B. A. MeKinney
Class B:
Marion Sansom
Frank Kell
J. C: Culbertson
Class J.
W. F. Ramsey
W. B. Newsome
H. O. Wooten




Residence.
Houston, Tex
Shreveport, La
Durant, Okla
Fort Worth, Tex
Wichita Falls, Tex
Paris, Tex .
Dallas, Tex
...do
Abilene, Tex

Term expires.
Dec. 31,1918
Dec. 31,1920
Dec. 31,1919
Do.
Dec. 31,1918
Dec. 31,1920
Do.
Dec. 31,1918
Dec. 31,1919

206

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

DISTRICT NO. 12.—FEDERAL RESERVE BANK OF SAN FRANCISCO.
[John Perrin, chairman and Federal Reserve Agent. Walton N. Moore, deputy chairman. James K.
Lynch, governor.]
Director.

Residence.

Class A:
C. K. Mclntosh
J. E. Fishburn
Alden Anderson
Class B:
A. B. C. Dohrmann..
J. A. McGregor
E.H. Cox
Class C:
John Perrin
Edward G.Elliott..
Walton N.Moore...

San Francisco, Cal.
Los Angeles, Cal...
Sacramento, Cal...
San Francisco, Cal.
.do.
Madera, Cal
Pasadena, Cal
Berkeley, Cal
:.
San Francisco, Cal.

Term expires.
Dec. 31,1919
Dec. 31,1920
Dec. 31,1918
Dec. 31,1920
Dec. 31,1918
Dec. 31,1919
Dec. 31,1920
Dec. 31,1919
Dec. 31,1918

DISTRICT NO. 12.—PORTLAND BRANCH OF FEDERAL RESERVE BANK OF SAN
FRANCISCO.
[W. N. Ambrose, acting manager.]
Directors.
A L Mills
J. C. Ainsworth
W N Ambrose
Nathan Strauss
Thomas C. Burke

Residence.

. .

.

Portland, Oreg
do
.do

. . .

do
do

Term expires.
Dec. 31,1918
Do.
Do.
Do.
Do.

DISTRICT NO. 12.—SEATTLE BRANCH OF FEDERAL RESERVE BANK OF SAN
FRANCISCO.
[C. J. Shepherd, manager.]
Directors.

Residence.
Seattle, Wash
do.
do
. . do

M F Backus
N.H. Latimer . ..
C J. Shepherd
Chas II. Clarke
Chas E Peabodv

do

Term expires.
Dec. 31,1918
Do.
Do.
Do.
Do.

DISTRICT NO. 12.—SPOKANE BRANCH OF FEDERAL RESERVE BANK OF SAN
FRANCISCO.
[Chas. A. McLean, manager.]
Directors.
E.T. Coman
D. W. Twohy
Chas. A. McLean.
Peter McGregor..
G.I. Toevs




Residence.
Spokane, Wash.
do
do
do
do

Term expires.
Dec. 31,1918
Do.
Do.
Do.
Do.

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

207

FEDERAL ADVISORY COUNCIL.
District No. 1.—Daniel G. Wing, president First National Bank, Boston, Mass.
District No. 2.—J. P. Morgan, of J. P. Morgan & Co., New York City.
District No. 3.—L. L. Rue, president Philadelphia National Bank, Philadelphia, Pa.
District No. 4.—W. S. Rowe, president First National Bank, Cincinnati, Ohio;
director Federal Reserve Bank of Cleveland.
District No. 5,—J. W. Norwood, president Norwood National Bank, Greenville, S. C.
District No. 6.—Charles A. Lyerly, president First National Bank, Chattanooga, Tenn.
District No. 7.—James B. Forgan, president First National Bank, Chicago,
111.; director Federal Reserve Bank of Chicago.
District No. 8.—F. O. Watts, president Third National Bank, St. Louis, Mo.;
director Federal Reserve Bank of St. Louis.
District No. 9.—J. R. Mitchell, president Capital National Bank, St. Paul,
Minn.
District No. 10.—E. F. Swinney, president First National Bank, Kansas City, Mo.
District No. 11.—T. J. Record, president City National Bank, Paris, Tex.
District No. 12.—Herbert Fleishhacker, president Anglo and London-Paris
National Bank, San Francisco. Cal.




Exhibit P.—DESCRIPTION OF FEDERAL RESERVE
DISTRICTS.
Below are descriptions of the 12 Federal Reserve districts, accompanied by estimates of the population of each district recently furnished by the Bureau of the Census. No detailed description of
Federal Reserve district^ has been issued since the Organization
Committee completed its work about four years ago. A map showing outline of the districts is also appended.
DISTRICT NO. 1.—BOSTON (6,963,987).
Connecticut (except Fair-field County) (975,434).
Maine (777,340).
Massachusetts (3,775,973).
New Hampshire (444,429).
Rhode Island (625.805).
Vermont (364,946).
DISTRICT NO. 2.—NEW YORK (13,111,816).
Connecticut (county of Fairfield) (289,939).
New Jersey (counties of Monmouth, Middlesex, Hunterdon, Somerset, Union,
Essex, Passaic, Hudson, Bergen, Morris, Sussex, and Warren) (2,361,695).
New York (10,460,182).
DISTRICT NO. 3—PHILADELPHIA (6,632,611).
Delaware (215,160).
New Jersey (except counties enumerated under District No. 2) (652,499).
Pennsylvania (eastern part) (5,764,952). Counties:
Adams.

Bedford.
Berks.
Blair.
Bradford.
Bucks.
Cambria.
Cameron.
Carbon.
Center.

Chester.
ClearfielcL
Clinton.
Columbia.
Cumberland.
Dauphin.
Delaware.
Elk.
Franklin.
Pulton.

208




Huntingdon.
Juniata.
Lackawanna.
Lancaster.
Lebanon.
Lehigh.
Luzerne.
Lyeoming.
McKean.
Mifflin.

Monroe.
Montgomery.
Montour.
Northampton.
Northumberland.
Perry.
Philadelphia.
Pike.
Potter.
Schuylkill.

Snyder.
Sullivan.
Susquehanna
Tioga.
Union.
Wayne.
Wyoming.
York.

ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD.

209

DISTRICT NO. 4—CLEVELAND (9,314,762).
Kentucky (eastern part) (1,039,880). Counties:
Bath.
Estill.
Bell.
Fayette.
Boone.
Fleming.
Bourbon.
Floyd.
Garrard.
Boyd.
Bracken.
Grant.
Greenup.
Breathiti fc.
Campbell.
Harlan.
Carter.
Harrison.
Clark.
Jackson.
Clay.
Jessamine.
Elliott.
Johnson.
Ohio (5,212,085).

Kenton.
Knott.
Knox.
Laurel.
Lawrence.
Lee.
Leslie.
Letcher.
Lewis.
Lincoln.
McCreary.
Madison.

Magomn.
Martin.
Mason.
Menifee.
Montgomery.
Morgan.
Nicholas.
Owsley.
Pendleton.
Perry.
Pike.
Powell.

Pulaski.
Robertson.
Rockcastle.
Rowan.
Scott.
Whitley.
Wolfe. *
Woodford.

Pennsylvania (western part) (2,895,090). Counties:
Allegheny.
Armstrong.
Beaver.
Butler.

Clarion.
Crawford.
Erie.
Fayette.

Forest.
Greene.
Indiana.
Jefferson.

Lawrence.
Mercer.
Somerset.
Venango.

Warren.
Washington.
Westmoreland

West Virginia (northern ]part) (167,707). Counties:
Brooke.
Hancock.

Marshall.

Ohio.

Wetzel.

Tyler.

DISTRICT NO. 5—RICHMOND (9,278,461).

District of Columbia, (369,282).
Maryland (1,373,673).
North Carolina (2,434,381).
South Carolina (1,643,205).
Virginia (2,213,025).
West Virginia (all counties except Brooke, Hancock, Marshall, Ohio, Tyler?
and Wetzel) (1,244,895).
DISTRICT NO. 6—ATLANTA (10,055,640).
Alabama (2,363,939).
Florida (916,185).
Georgia (2,895,841).
Louisiana (southern part) (1,260,490) . Parishes:
Acadia.
Allen.
Ascension,
Assumption.
Avoyelles.
Calcasieu.
Cameron.
East Baton Rouge.
East Peliciana.
Evangeline.

Iberia.
Iberville.
Jefferson.
Jefferson Davis.
Lafayette.
Lafourche.
Livingston.
Orleans.
Plaquemines.
Pointe Coupee.

Rapides.
St. Bernard.
St. Charles.
St. Helena.
St. James.
St. John the Baptist.
St. Landry.
St. Martin.
St. Mary.
St. Tammany.

Tangipahoa.
Terrebonne.
Vermilion.
Vernon.
Washington.
West Baton Rouge
West Feliciana.

Mississippi (southern part) (996,935). Counties:
Greene.
Adams.
Hancock.
Amite.
Harrison.
Claiborne.
Clarke.
Hinds.
Copiah.
Issaquena.
Covington.
Jackson.
Forrest.
Jasper.
Franklin.
Jefferson.
Jefferson Davis.
George.



Jones.
Kemper.
Lamar.
Lauderdale.
Lawrence.
Leake.
Lincoln.
Madison.
Marion.

Neshoba.
Newton.
Pearl River.
Perry.
Pike.
Rankin.
Scott.
Sharkey.
Simpson.

Smith.
Walthall.
Warren.
Wayne.
Wilkinson.
Yazoo.

210

ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD.

Tennessee (eastern part) (1,622,250). Counties:
Anderson.
Bedford.
Bledsoe.
Blount.
Bradley.
Campbell.
Cannon.
Carter.
Cheatham.
Claiborne.
Clay.
Cocke.
Coffee.
Cumberland.
Davidson.

Dekalb.
Dickson.
Fentress.
Franklin.
Giles.
Grainger.
Greene.
Grundy.
Hamblen.
Hamilton.
Hancock.
Hawkins.
Hickman.
Houston.
Humphreys.

Jackson.
James.
Jefferson.
Johnson.
Knox.
Laurence.
Lewis.
Lincoln.
Loudon.
McMinn.
Macon.
Marion.
Marshall.
Maury.
Meigs.

Monroe.
Montgomery.
Moore.
Morgan.
Overton.
Perry.
Pickett.
Polk.
Putnam.
Rhea.
Roane.
Robertson.
Rutherford.
Scott.
Sequatchie. •

Sevier.
Smith.

Stewart.

Sullivan.
Sumner.
Trousdale.
Unicoi.
Union.
Van Buren.
Warren.
Washington
Wayne.
White.
Williamson.
Wilson.

DISTRICT NO. 7—CHICAGO (14,154,175).

Illinois (northern part) (;4,977,386). Counties:
Boone.
Bureau.
Carroll.
Cass.
Champaign.
Christian.
Clark.
Coles.
Cook.
Cumberland.
Dekalb.
Dewitt.

Douglas.
Dupage.
Edgar.
Ford.
Fulton.
Grundy.
Hancock.
Henderson.
Henry.
Iroquois.
Jo Daviess.
Kane.

Kankakee.
Kendall.
Knox.
Lake.
La Salla.
Lee.
Livingston.
Logan.
McDonough.
McHenry.
McLean.
Macon.

Marshall.
Mason.
Menard.
Mercer.
Moultrie.
Ogle.
Peoria.
Piatt.
Putnam.
Rock Island.
Sangamon.
Schuyler.

Shelby.
Stark.
Stephenson.
Tazewell.
Vermilion.
Warren.
Whiteside.
Will.
Winnebago.
Woodford.

Indiana (northern part) (2,227,340). Counties:
Adams.
Allen.
Bartholomew.
Benton.
Blackford..
Boone.
Brown.
Carroll.
Cass.
Clay.
Clinton.
Dearborn.
Decatur.
Dekalb.

Delaware.
Elkhart.
Fayette.
Fountain.
Franklin.
Fulton.
Grant.
Hamilton.
Hancock.
Hendricks.
Henry.
Howard.
Huntington.
Jasper.

Jay.
Jennings.
Johnson.
Kosciusko.
Lagrange.
Lake.
Laporte.
Madison.
Marion.
Marshall.
Miami.
Monroe.
Montgomery.
Morgan.

Newton.
Noble.
Ohio.
Owen.
Parke.
Porter.
Pulaski.
Putnam.
Randolph.
Ripley.
Rush.
St. Joseph.
Shelby.
Starke.

Steuben.
Tippecanoe.
Tipton.
Union.
Vermilion.
Vigo.
Wabash.
Warren.
Wayne.
Wells.
White.
Whitley.

Iowa (2,224,771).
Michigan (southern part) (2,721,733). Counties:
Alcona.
Allegan.
Alpena.
Antrim.
Arenac.
BarryBay.
Benzie.
Berrien.
Branch.
Calhoun.
Cass.
Charlevoix.
Cheboygan.

Claire.
Clinton.
Crawford.
Eaton.
Emmet.
Genesoe.
Gladwin.
Grand Traverse.
Gratiot.
Hillsdale.
Huron.
Ingham.
Ionia.
Iosco.




Isabella.
Jackson.
Kalamazoo.
Kalkaska.
Kent.
Lake.
Lapeer.
Leelanau.
Lenawee.
Livingston.
Macomb.
Manistee.
Mason.
Mecosta.

Midland.
Missaukee.
Monroe.
Montcalm.
Montmorency.
Muskegon.
Newaygo.
Oakland.
Oceana.
Ogenaw.
Osceola.
Oscoda.
Otsego.
Ottawa.

Presque Isle
Roscommon.
Saginaw.
St. Clair.
St. Joseph.
Sanilac.
Shiawasee.
Tuscola.
Van Buren.
Washtenaw.
Wayne.
Wexford.

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

211

Wisconsin (southern part) (2,002,945). Counties :
Adams.
Brown.
Calumet.
Clark.
Columbia.
Crawford.
Dane.
Dodge.
Door.

Fond du Lac.
Grant.
Green.
Green Lake.
Iowa.
Jackson.
Jefferson.
Juneau.
Kenosha.

Kewaunee.
Lafayette.
Langlade.
Manitowoc.
Marathon.
Marinette.
Marquette.
Milwaukee.
Monroe.

Oconto.
Outagamie.
Ozaukee.
Portage,
Itacine.
Richland.
Rock.
Sauk.
Shawano.

Sheboygan.
Vernon.
Walworth.
Washington
Waukesha.
Waupaca.
Waushara.
Winnebago.
Wood.

DISTRICT NO. 8—ST. LOUIS (9,291,698).
Arkansas (1,766,343).
Illinois (southern part) (1,257,609).
Adams.
Alexander.
Bond.
Brown.
Calhoun.
Clay.
Clinton.
Crawford.
Edwards.

Effingham.
Fayette.
Franklin.
Gallatin.
Greene.
Hamilton.
Hardin.
Jackson.
Jasper.

Counties:
Montgomery.
Morgan.
Perry.
Pike.
Pope.
Pulaski.
Randolph.
Richland.
St. Clair.

Jefferson.
Jersey.
Johnson.
Lawrence.
Macoupin.
Madison.
Marion.
Massac.
Monroe.

Saline.
Scott.
Union.
Wabash.
Washington.
Wayne.
White.
Williamson.

Indiana (southern part) (608,152). Counties:
Clark.
Crawford.
Daviess.
Dubois.
Floyd.

Gibson.
Greene.
Harrison.
Jackson.
Jefferson.

Knox.
Lawrence.
Martin.
Orange.
Perry.

Kentucky (western part) (1,354,213).
Adair.
Allen.
Anderson.
Ballard.
Barren.
Boyle.
Breckenridge.
Bullitt.
Butler.
Caldwell.
Calloway.
Carlisle.
Carroll.

Casey.
Christian.
Clinton.
Crittenden.
Cumberland.
Daviess.
Edmonson.
Franklin.
Fulton.
# Gallatin.
Graves.
Grayson.
Greene.

Pike.
Posey.

Scott.

Sullivan.
Spencer.

Counties:

Hancock.
Hardin.
Hart.
Henderson.
Henry.
Hickman.
Hopkins.
Jefferson.
Lame.
Livingston.
Logan.
Lyon.
McCracken.

Mississippi (northern part) (979,635).
Alcorn.
Attala.
Benton.
Bolivar.
Calhoun.
Carroll.
Chickasaw.
Choctaw.

Clay.
Coahoma.
De Soto.
Grenada.
Holmes.
Itawamba.
Lafayette.
Lee.

Missouri (eastern part)
in district No. 10.

Switzerland.
Vanderburg.
Warrick.
Washington.

Leflore.
Lowndes.
Marshall.
Monroe.
Montgomery.
Noxubee.
Oktibbeha.
Panola.

McLean.
Marion.
Marshall.
Meade.
Mercer.
Metcalfe.
Monroe.
Muhlenberg.
Nelson.
Ohio.
Oldham.
Owen.
Russell.

Shelby.
Simpson.
Spencer.
Taylor.
Todd.
Trigg.
Trimble.
Union.
Warren.
Washington.
Wayne.
Webster.

Counties:
Pontotoc.
Prentiss.
Quitman.
Sunflower.
Tallahatchie.
Tato.
Tippah.
Tishomingo.

Tunica.
Union.
Washington.
Webster.
Winston.
Yalobusha.

(2,643,367). Counties: All except those included

Tennessee (western part) (682,379). Counties:
Dyer.
Benton.
Carroll.
Fayette.
Chester.
Gibson.
Crockett.
Hardeman.
Decatur.
Hardin.



Haywood.
Henderson.
Henry.
Lake.
Lauderdale

McNairy.
Madison.
Obion.
Shelby.
Tipton.

Weakley,

212

ANNUAL REPORT OF T H E FEDERAL RESERVE BOARD.

DISTRICT NO. 9—MINNEAPOLIS (5,164,426),
Michigan (northern part) (372.533). Counties:
Alger.
Baraga.
Chippewa.

Delta.
Dickinson.
Gogebic.

Houghton.
Iron.
Keweenaw.

Luce.
Mackinac.
Marquette.

Menominee.
Ontonagon.
Schoolcraft.

Minnesota (2,312,445).
Montana (472,935).
North Dakota (765,319).
South Dakota (716,972).
Wisconsin (northern part) (524,222). Counties:
Ashland.
Barron.
Bayfield.
Buffalo.
Burnett.
Chippewa.

Douglas.
Dunn.
Eau Claire.
Florence.
Forest.
Iron.

La Crosse.
Lincoln.
Oneida.
Pepin.
Pierce.
Polk.

Price*.
Rusk.
St. Croix.
Sawyer.
Taylor.
Trempealeau.

Vilas.
Washburn.

DISTRICT NO. 10—KANSAS CITY (7,404,443).
Colorado (988.320).
Kansas (1,851,870).
Missouri (western part) (786,228). Counties:
Andrew.
Atchisorr.
Barton.
Bates.

Buchanan.
Cass.
Clay.
Clinton.

Dekalb.
Gentry.
Holt.
Jackson.

Jasper.
McDonald.
Newton.
Nodaway.

Platte.
Vernon
Worth.

San Miguel.
Santa Fe.

Taos.
Union.

Nebraska (1,284,126).
Colfax.
McKinley.

Oklahoma
Adair.
Alfalfa.
Beaver.
Blaine,
Beckhain.
Caddo.
Canadian.
Carter.
Comanche.
Cotton.
Custer.
Cherokee.
Cimarron.
Cleveland.

Sandoval.
Mora.
San J uan.
Rio Arriha
(all •
except southeastern part)
Craig.
Creek.
Delaware.
Dewey.
Ellis.
Garfleld.
Garvin.
Grant.
Grady.
Greer.
Harper.
Harmon.
Haskell.
Hughes.

Jackson.
Jefferson.
Kay.
Kingfisher.
Kiowa.
Latimer.
Le Flore.
Lincoln.
Logan.
Love.
McClain.
Mclntosh.
Major.
Mayes.

(2,112,489). Counties:
Muskogee.
Murray.
Noble.
Nowata.
Okfuskee.
Oklahoma.
Okmulgee.
Osage.
Ottawa.
Pawnee.
Payne.
Pottawatomie.
Pittsburg.
Pontotoc.

Rogers.
Roger Mills.
Seminole.
Sequoyah.
Stephens.
Texas.
,Tulsa.
Tillman.
Washita.
Wagoner.
Washington
Woods.
Woodward.

Wyoming (184.970)
DISTRICT NO. 11—DALLAS (5,637,290).
Arizona (southeastern part) (120,828). Counties:
Cochise.

Pima.

Graham.

Santa Cruz.

Greenlee.

Louisiana (northern part) (596,464). Parishes :
Bienville.
Clalborno.
Bossier.
Concordia.
Beauregard.
De Soto.
Caddo.
East Carroll.
Caldwell.
Franklin.
Catahoula.
Grant.



Jackson.
La Salle.
Lincoln.
Madison.
Morehouse.
Natchitoches.

Ouachita.
Red River.
Richland.
Sabine.
Tensas.
Union.

Webster.
West Carroll.
Winn.

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
New Mexico (southern part) (227,209).
Bcrnalillo.
Chaves.
Curry.
Dona Ana.

Eddy.
Grant.
Guadalupe.

Lincoln.
Luna.
Otero.

Counties:
Quay
Roosevelt.
Sierra.

Socorro.
Torre nee.
Valencia.

Oklahoma (southeastern part) (177,366). Counties:
Atoka.
Bryan.

Choctaw.
Coal.

Johnston.
McCurtain.

Marshall.

Pushmataha

Texas (4,515,423).
DISTRICT NO. 12—SAN FRANCISCO (6,631,164).
Arizona (northwestern part) (142,960).
Apache.
Coconino.

Gila.
Maricopa.

California (3,029,032).
Idaho (445,176).
Nevada (110,738).
Oregon (861,992).
Utah (443,866).
Washington (1,597,400),




Mohave.
Navajo.

Counties:
Pinal.
Yavapai.

Yuma.

213

PART II.
REPORTS OF FEDERAL RESERVE AGENTS TO
FEDERAL RESERVE BOARD.




215

DISTRICT NO. 1—BOSTON.

FREDERIC

H.

CURTISS,

Chairman and Federal Reserve Agent.

INTRODUCTION.

The year 1917 has been momentous in the history of this country
through its entrance on the side of the entente powers into the great
European war against the central powers in the struggle of democracy against autocracy. The change of financial and commercial
activities of the country, brought about by the declaration of war
by Congress, has been felt in New England, owing to the character
of its industries, probably as much as, if not more, than in any other
portion of the United States.
The Federal Eeserve Bank of Boston has played no small part in
assisting the Government and the New England banks in financing
the new requirements brought about by war conditions. War was
declared on April 6, 1917, but previous to that time a large portion
of the industries in the district were occupied in manufacturing
arms, munitions, and other war requisites for the allied powers.
The high cost of labor and of such raw materials as wool, cotton,
leather, etc., has kept money in good demand throughout the entire
year, so that the resources of the Federal Reserve Banks have been
employed to a far greater extent than in previous years, both by
discounts for member banks and through purchases in the open market of bankers acceptances.
FINANCIAL RESULTS OF OPERATION.

The activities referred to brought the earnings of the Federal Reserve Bank to a point largely in excess of those of any previous year
and these earnings were such that on December 20, 1917, the board
of directors, with the approval of the Federal Reserve Board, declared a dividend at the rate of 6 per cent, covering all accumulated
dividends up to December 31, 1917. This dividend amounted to
$597,828.54, and covered the period from January 1, 1915, to December 31, 1917.




217

218

ANNUAL EEPOKT OF THE FEDERAL RESERVE BOARD.

After these dividends were paid and due depreciation of securities
had been allowed, a balance of $150,200 still remained, 50 per cent
of which was carried to a surplus account and the balance paid to
the United States Government as a franchise tax, as provided by
the Federal Beserve Act. Schedule 1 shows these earnings in detail
as compared with the year 1916.
The statement of condition of the bank on December 31, 1917, as
compared with December 31, 1916, makes an interesting comparison,
as will be seen from Schedule 2.
The total resources at the end of the year 1917 were $253,000,000,
as compared with $65,000,000 at the end of the year 1916. An increase will be noted in all items making up the balance sheet, the
most notable being increases in bills discounted, in deposits of member banks, in Government deposits, and in gold holdings.
GENERAL BUSINESS AND BANKING CONDITIONS IN THE DISTRICT.

The year opened with peace overtures under discussion by the
warring nations. The uncertainty as to the effect of an early ending
of the war influenced business men to go slow in their future commitments, but the volume of business in the process of manufacture
and orders on hand was so large as to cause great activity in practically all manufacturing lines; more especially those engaged in
the making of war materials. Although the high prices prevailing
on all raw materials and the increasing cost of labor have made it
difficult to forecast the costs of production, the industries in this
district for the most part have had a profitable year, and in war
lines exceptionally large profits have accrued.
Labor troubles, the international situation, embargoes, and other
disturbances have created new problems. With the declaration of
war, and even before, prices of foodstuffs began to soar and, as the
cost of living increased., labor in all lines demanded higher wages.
The difficulty in procuring coal and the price of that commodity
has been an important factor in the cost of production. With the
declaration of war, business more and more turned to Government
orders, and banks were called upon to finance to a greater extent
industries engaged in such work and subscriptions to bond issues
and short-term obligations of the Government.
Early in May, business began to show unusual signs of hesitation
and the future trend of prices grew more difficult to prognosticate,
especially with commodity prices rising and evidences of hoarding
and economy appearing.
With the successful flotation of the first Liberty loan, business
identified with the war was greatly stimulated, but a retarding effect
was evident in other lines, especially in luxuries and nonessentials.



DISTRICT NO. 1—BOSTON.

219

This resulted in a spotty condition which, with an ever-increasing
separation between war and domestic orders, resulted in the two lines
diverging more and more as the year went on.
Money rates during the first few months of the year remained
low, but as the year advanced the tendency was toward higher rates,
strengthening with each offering of certificates of indebtedness by
the Secretary of the Treasury until June 15, the date of payment on
the first Liberty loan, when rates approached a 6 per cent basis.
From that date rates held firm until well into August, easing somewhat at that time, but increasing again in the early fall, when certificate offerings were renewed. As the season for crop moving approached and the financing of the second Liberty loan began to be
felt rates materially strengthened, and although banks seldom,
charged their customers over 6 per cent, their borrowings from the
Federal Eeserve Bank became heavier and more frequent.
DISCOUNT OPERATIONS.

During the first year and a half of operations of this bank rediscounts from member banks were small, never reaching during that
time $500,000. During July, 1916, these reached a high point of
$5,000,000, from which they quickly receded, and it was not until late
in that year that they again expanded, this time to a high point of
$10,000,000.
During January of the present year, rediscounts again declined to
just below $1,000,000 and fluctuations for the balance of the year are
outlined in Schedule 4 appended. Early in June, 1917, with the
approach of payments on the first Liberty loan, rediscounts expanded
to a high point of $25,500,000. From this point they receded to a
little over $14,000,000, fluctuating with an upward tendency until
October, when they dropped to a low point of $10,800,000.
With the approach of payment dates for the second Liberty loan
there was a heavy demand for discounts from members, and
through them from nonmembers. These, for the most part, were
secured by Liberty loan bonds. The highest point for one day was
reached on December 4, when on the eve of an increase in discount
rates,1 the bank discounted or loaned on 1,280 items for about 60
banks something over $36,000,000. This compares with total rediscounts of $2,386,923 from 29 banks for the first 13| months of operation. In other words, the bank rediscounted about 15 times as large
an amount in one day as during the entire first 13| months of operations to December 31, 1915. This brought the total loans to
$101,000,000.
1

Member banks had been advised that they would be given 48 hours' notice of any
change in the discount rates then existing.
34365°—18
15



220

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

On December 4, in order to strengthen the bank's reserve, there
were sold from the bank's own portfolio to other Federal Reserve
Banks $5,000,000 of acceptances, and on December 5 a further lot of
$10,000,000. This brought the bank's loans on December 5 down to
$91,000,000.
With the financing incidental to the second Liberty loan and with
the withdrawal of Government deposits from depositary banks, the
demand on the Federal Reserve Bank from its member banks for accommodation became so heavy that during December, besides selling
to the other Federal Reserve Banks bankers' acceptances referred to
elsewhere, on December 11 rediscounts amounting to $20,000,000
secured by Liberty loan bonds were made with other Federal Reserve Banks and on December 18 a further rediscount of $25,000,000.
TRADE ACCEPTANCES.

The use of the trade acceptance has not broadened during the
year and has been confined, as in previous years, largely in connection with the cotton industries.
Money conditions were such last year that note brokers could sell
trade acceptances in the open market, but banks have been out of the
market for outside paper, especially during the period of the movement of cotton and, therefore, these acceptances have been bought by
the Federal Reserve Bank, largely from country banks in mill centers and with such member banks' indorsement, and in increasing
amounts toward the end of the year, as will be seen by Schedule 7.
Few of the larger banks in the district have yet encouraged the trade
acceptance, still, being in favor of the single name note and the discount system so long in vogue in this section. The rate on the trade
acceptance maintained by the bank has been about one-half per
cent lower than the rate on bills discounted.
ACCEPTANCES.

The acceptance business has shown marked growth during the
year, the increased cost of raw material necessary for the industries
of the district having influenced this form of financing. The development of foreign bills has been most satisfactory, imported wool,
cotton, hides, and jute forming the principal merchandise thus
financed. This method of financing has done much to develop banking relations between the United States, South America, and the
Far East.
The line of development of the domestic acceptance in this district, however, has not been so satisfactory. The fact that rates
were maintained for bankers' acceptances by the Federal Reserve
Bank below the ruling money rates and the unusual demands for
capital which existed, especially in the financing of cotton and



DISTRICT NO. 1—BOSTON.

221

other raw material, induced banks to accept bills drawn rather for
general financing purposes than for the transportation or carrying
of merchandise.
Some banks have at times accepted drafts simply to extend additional accommodation to customers who were already borrowing
up to their legal limit, and acceptances have been made that were
not in strict accordance with the tenets of the Federal Reserve Act
and the regulations of the Federal Eeserve Board.
It will be seen by reference to Schedule 6 that the investment of
the Federal Eeserve Bank in acceptances has fluctuated widely during the year. In order to strengthen the bank's reserve these investments were allowed to run off early in the year so that in April, at
the outbreak of the war, the bank held but $6,500,000. While the
bank has maintained a policy of buying all eligible acceptances
when offered and indorsed by its member banks, it has reduced such
offerings by raising its purchase rate so as to send acceptances into
the portfolios of other banks. As money rates increased, acceptances
were offered more freely, and in October the bank had invested some
$30,000,000 in these securities. The raising of the purchase rate has
not always been effectual in reducing the volume of offerings of this
character coming to the bank, for at times commercial banks were
out of the market and other Federal Eeserve Banks were giving
preference to the acceptances of members in their own district.
While, during the development by the banks of this country of this
new class of business, it may have been necessary and desirable for
the reserve banks to maintain rates for bankers' acceptances much
below the ruling local money rates in order to compete with foreign
bankers, this has had the effect of limiting their market to the Federal Eeserve Bank and a few of the large city banks. Both from
the buying and selling standpoint it would appear desirable to
encourage a broader and freer market for bankers' acceptances. The
Federal Eeserve Bank should not feel obliged to support the market
for its member banks' acceptances or to restrict its purchases only
to its member banks, and the purchase rate should follow more
nearly those of similar high-grade short-time investments so as to
attract banks throughout the country to cany bankers' acceptances
in their portfolios as secondary reserve. Schedules 7 and 8 show
the amount and character of these purchasings.
Schedule 9 shows the acceptance liability of national banks in
New England at date of comptroller's calls.
UNITED STATES BONDS.

Investments in United'States bonds and other Government securities by the Federal Eeserve Bank have not shown material increase
during the year.



222

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

On April 1, the bank purchased through the Secretary of the
Treasury 1,057,750 United States 2 per cent bonds, its proportion of
the bonds offered by member banks under section 18 of the Federal
Reserve Act. One-half of these bonds and similar bonds already
held by the bank were converted into one-year Treasury notes. Schedule 2 shows the bank's investments in Government securities on December 31, 1916, and December 31, 1917.
MUNICIPAL, WARRANTS.

Municipal warrants have been purchased by the bank only when
discounts, bankers' accptances, and other short-time eligible securities wrere lacking. The increased use of bankers' acceptances and
trade acceptances, and the demand for rediscounts from member
banks has been so large that with the exception of $125,000 city of
New York 3 | notes, which matured on June 5, the Federal Reserve
Bank has made no purchase of warrants.
RESERVE POSITION.

The reserve position of the Federal Reserve Bank has changed materially during the year. The gold holdings of the bank have increased, but on the other hand the percentage of reserve against
deposits, with the greater activities of the bank, shows a decrease.
The increase in the gold has been brought about through several
causes: The changes in reserve requirements in the amendments to
the Federal Reserve Act of June 21; the admission of State banks
to membership; and the process of replacing with Federal Reserve
notes gold and gold certificates'carried by State and national banks
as till money, and, to some extent, the retention by the bank of gold
in circulation.
Under a ruling of the Federal Reserve Board, the Boston banks
increased their reserve with the Federal Reserve Bank under the new
requirements on June 27, the country banks being allowed to maintain their former reserve until July 15.
The reserve position of the bank at weekly periods during the year
will be found in Schedule 10, and the gold reserve on chart 10A.
Schedule 19 showTs the reserve of national banks in New England
at date of comptroller's calls.
MOVEMENT OF MEMBERSHIP.

Changes in the status of national banks in the district during the
year, especially as to conversion into trust companies, have been less
marked than in previous years, and only 13 member banks have sur-




DISTRICT NO. 1

BOSTON.

223

rendered their charters during the year. On the other hand, many
of the larger State institutions have joined the system, and the position of this bank has been materially strengthened thereby.
There are now 403 member banks in this district as against 399
at the end of 1916. The number of shares in the Federal Eeserve
Bank surrendered by the withdrawal of membership during the year
amounted to 2,295, as compared to 12,533 subscribed by new members. The details of these changes wTill be seen in Schedules 11, 12,
and 13.
RELATIONS WITH MEMBER BANKS.

Activities in connection with subscriptions to Liberty loan bonds
and the financing of such subscriptions, as w^ell as other Government
requirements, have brought member banks into closer touch with the
Federal Eeserve Bank. More banks have availed themselves of
rediscount privileges and to a greater extent.
The feeling of the country banker concerning membership in the
Federal Eeserve system has shown a marked change during the year,
and all banks are apparently coming to realize the advantages
offered by the reserve system and the strength given them by membership.
More banks have used the check-collection system and to a greater
extent, but the charge of nine-tenths of a cent prevents banks from
making general use of that facility, especially the country banks,
which continue to send their checks largely to their city correspondents. The time-collection system and the transfer-check system have
been used to but a limited extent as noted elsewhere in the report.
Permission to act as trustee, etc., under section I l k of the Federal
Eeserve Act has been granted to the banks named in Schedule 16.
The names of banks authorized during the year to accept up to an
amount equal to 100 per cent of their capital and surplus will be
found in Schedule 17.
Schedule 14 shows the borrowings of national banks in New England at the time of the comptroller's calls.
RELATIONS WITH STATE BANKS AND TRUST COMPANIES.

During the past year the bank has also been brought into more
intimate relations with the State banks of this district through governmental operations in connection with Liberty loan subscriptions
and Government depositaries.
In the handling of Liberty loan operations the officers of State
and member banks took prominent parts. Both by redeposits of
Government funds and rediscount assistance for carrying bonds,




224

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

State banks were given the same accommodation as member banks
except that rediscounts made for State banks were made only through
and with the indorsement of member banks.
Under authority of the Federal Eeserve Act, the Federal Reserve
Board ruled on May 15 that Federal Reserve Banks might rediscount
for member banks notes of State banks issued for carrying Liberty
loan bonds and while this permission was granted only for the
period from June 15 to July 15, the time was extended throughout
the year.
As the war progressed, State banks began to be more often
called upon to finance customers engaged on Government work and
such banks began to appreciate the advantages offered by the Federal
Reserve Bank to member banks through rediscounts. This, together
with amendments to the Federal Reserve Act of June 21, 1917, wxhich
were particularly favorable to State institutions, influenced a number
of State banks to apply for membership in the Federal Reserve
system.
It was not, however, until after the appeal of the President of the
United States, on October 13, that State banks began to any great
extent to apply for membership, banks applying after that date
stating that they were doing so largely for patriotic reasons.
Relations between the officers of the Federal Reserve Bank and
those of the State institutions have been most friendly and cordial,
and during the year State institutions offered to the reserve bank
their gold holdings in exchange for Federal Reserve notes in order to
strengthen the gold reserve of the Federal Reserve system.
The admission of these State banks to membership has given additional strength to the reserve system, as the applications of banks
have been approved by the reserve bank's committee only when
their condition after careful examination demonstrated that their
admission would add strength to the system. The list of State banks
admitted during the year and their deposits on admittance will be
seen by Schedule 13. There are also some 10 or mere State banks
whose applications for membership are pending. In connection with
the examination of the applying State banks, the cooperation of the
bank departments of the different States has been most helpful. The
special committee of the American Bankers' Association has also been
of value in influencing several of the State banks to apply for membership.
Under the laws of several of the States of the district, savings
accounts are required to be segregated and invested in savings banks'
securities, and are subject to no reserve requirements. As a number
of the State banks of the district have built up savings departments of
considerable size and the reserve requirements of the Federal Reserve
Act require that 3 per cent reserve be carried against savings de


DISTRICT NO. l—BOSTON.

225

posits, this has deterred a number of State banks from applying for
membership, as have also5 to some extent, the requirements of section
22 of that act. While the laws of all of the States in the district allow
State banks to join the Federal Reserve system, still in several of the
States the laws are such that State banks that have been admitted
to the reserve system can not take advantage of the reserve requirements and are obliged to carry such reserves as their State laws
specify, which has the effect of increasing the reserve which those
banks are required to maintain.
Schedule 15 contains figures regarding eligible nonmember banks.
POLICY IX REGARD TO RATES OX REDISCOUNTS AXD PURCHASES OF
ACCEPTANCES.

Government necessities have been an important factor in deciding
the discount policy of the Federal Reserve Bank from the time of
the declaration of war. Early in the year, at the suggestion of the
Federal Reserve Board, this bank, together with other Federal Reserve Banks, raised its open-market rates on bankers' acceptances
above the outside rate, and as these securities constituted one of the
principal investments of the reserve bank, acceptances coming upon
the market were purchased by member banks for their portfolios.
The volume of the investment of these securities held by the bank
was thereby materially reduced and the reserve of the bank was considerably strengthened. On April 6, 1917, at the outbreak of the
war, its reserve was 76 per cent.
During the subscription period of the first Liberty loan, it became
necessary to establish a rate to carry Liberty loan bonds, and the
directors of the Federal Reserve Bank were for the first time confronted with the question what effect would be produced by Government needs on what might be called the strictly commercial requirements of the district. While, under normal conditions, a rate somewhat higher than the Government loan yielded would have been
deemed proper, the directors finally decided that such a rate might
interfere with subscriptions to the Government bond issue, and, therefore, decided to establish a 3 | per cent rate both on the 15-day and
90-day notes secured by Liberty loan bonds.
Outside of the marking up of the rate on trade acceptances from
8 | per cent to 4- per cent on June 26,1917, no other changes were made
in the discount rate until August, when the acceptance rate was advanced. At that time it was felt that all rates might properly be
moved up, for after the payments on account of Liberty loan subscriptions made on August 15, the banks in the district began to feel
the drain caused by these payments, and discounts at the reserve
banks became more frequent. It was felt, however, that the raising of



226

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

the discount rate at that time might interfere with the sale by the
Secretary of the Treasury of the United States of the certificates of
indebtedness which were soon to be forthcoming in connection with
the second Liberty loan, especially as the act of Congress prevented
the Secretary of the Treasury from issuing such certificates at a rate
higher than 3J per cent. From this period on, certain of the member
banks began to run up their lines of discount, these banks having
demands on them not only for subscriptions to Liberty loan bonds^
but also from customers working on Government contracts. I n
order, however, to protect the reserve of the bank, the rates for
bankers' acceptances were steadily increased until they wrere about
one-half per cent above the rate established by the New York Federal
Reserve Bank, thereby sending those created in this market largely
to the New York bank. Although it was suggested to these member
banks that they endeavor to liquidate their rediscounts, it wTas finally
decided that nothing should be done to interfere with Government
needs, and liquidation in nonessential industries should be encouraged.
If liquidation in the nonessential industries were to take place,
it was decided that such liquidation could be safely accomplished only
through some indirect influence coming from the Government itself
and that banks should be encouraged to expand in financing Government orders and in placing the different Government loans. After
Congress met in September and had given the Secretary of the
Treasury the discretion as to rates on Government borrowings, the
directors of the reserve bank felt freer to establish rates based on
prevailing local conditions.
With the inauguration of the second Liberty loan the same question as to the policy of establishing a rate for carrying these 4 per
cent bonds came up for consideration. I t was deemed inadvisable
to make any change in the previous rate of 3 | per cent, either for
15-day loans to banks secured by Liberty loan bonds or for 90-day
loans to individuals so secured, and other rates were not raised. Here
again it was found necessary to stimulate subscriptions to Government bonds. With the withdrawal of Government deposits in December, banks, as in July, began to feel the strain and the contraction
of the money market again brought the banks to the Federal Reserve
Bank for rediscounts. This time it was decided to raise the rates
in order to encourage some liquidation, and new rates were accordingly put into effect on December 5 and again on December 12, as
shown by Schedule 18.
CREDIT DEPARTMENT.

During the year the credit department, under the supervision of
the Federal Reserve agent, began giving more attention to the state-




DISTRICT NO. 1—BOSTON.

227

ments of borrowers from member banks when their notes were offered
for rediscount, especially from the viewpoint of eligibility. A policy
was adopted of requiring banks to furnish statements of the makers
of notes offered, whenever notes were for $5,000 and over. This
policy was adopted with the idea of influencing member banks to
extend their credit departments and to give more attention to the
character of notes offered.
DEPOSITS.

There are appended Schedules 20, 21, and 22, showing the fluctua-1
tion of member bank deposits, United States Government deposits
(general account), and United States funds deposited by the bank
as fiscal agents with designated depositaries.
Member bank deposits, as will be seen by Schedule 20, showed a"
very material increase, expanding from a low point of about
$43,000,000 early in the year to a high point of nearly $118,000,000
on November 15. This high point, however, was maintained only
for a few days for use in payments to be made on the second Liberty
loan. Most of the increase in deposits is due to the new reserve requirements of the Federal Eeserve Act as amended in June, 1917,
and to the deposits of State banks admitted to membership.
Schedule 20 shows the trend of deposits during the year. While
the policy of penalizing banks deficient in reserves has been continued, the number of banks so penalized has been comparatively;
small. Government deposits are dealt with later in the report.
PERIODIC REPORTS REGARDING MEMBER BANKS.

Reports of national bank examinations are received regularly, as
in previous years, from the chief bank examiner, and similar reports
have been placed at the disposal of the Federal Eeserve Bank by the
bank commissioners of examinations made by them of State banks
admitted to membership. These reports have been of great value
to the officers in giving them an intimate knowledge of the financial
conditions of member banks.
Beginning December 7, weekly reports are being received from
member banks in Boston and Springfield, Mass.; Hartford, Conn.;
Providence, K. I., and New Haven, Conn., these reports being similar
in character to those which the different clearing houses have re€{uired of their member banks. These reports should prove of great
value in keeping the bank officials in touch with the financial conditions of the district.
EDUCATIONAL AND PUBLICITY WORK.

While the officers of the bank have addressed bankers' meetings
and trade organizations, the educational and publicity work has



228

ANNUAL EEPOET OF THE FEDERAL RESERVE BOARD.

been confined largely to matters pertaining to the Liberty loans
and to inducing the State institutions to- join the Federal Reserve
system. The close intercourse of the officials of the bank in connection with governmental operations has furnished an opportunity
for personal contact, both with the banker and business man, which
has been most beneficial. Copies of speeches made by officers of
the reserve system and prominent bankers dealing with the different
phases of the Federal Reserve Act have been sent from time to timethroughout the district.
Banks, and the public in general, have come to appreciate the
power of the Federal Reserve system, especially in connection with
the financing of the Government loans. The fact that these loans
have been financed, as well as the largely increased Government
orders, without any undue disturbance in the money market, has
done much to impress all thinking banking officials and business
men of the potential strength of the reserve bank and the system
as a whole.
GOVERNMENT DEPOSITS.

The deposits of the Government, both in the Federal Reserve Bank
and with depositary banks has been of unusual magnitude and activity during the year, as will be seen by Schedules 21 and 22. The
Government purchases of ammunition and other war supplies manufactured in the district and the receipts and transfers on account
of Liberty loan bonds, has made this bank's position as fiscal agent
a most important one. Acting under permission given in Treasury
Department Circular No. 81, 245 banks qualified as Government
depositaries in connection with the first Liberty loan and payments
were made by credit and redeposits amounting to about $82,000,000.
In connection with the second Liberty loan, 209 banks so qualified
and payments by credit in connection with the November 15 payment amounted to over $170,000,000. The securities offered as collateral against these deposits were approved by a committee consisting of Mr. Charles A. Morss, class B director of the bank, as
chairman; Mr. A. L. Aiken, governor of the bank; Mr. F. H. Curtiss,
Federal Reserve agent, Mr. J. H. Leman, of Merrill, Oldham &
Co., bankers; and Mr. G. P. Fogg, of R. L. Day & Co., bankers.
In connection with deposits of securities made against the first
Liberty loan payments, several of the larger Boston banks and
certain of the Connecticut banks acted as custodians of collateral.
Securities pledged in connection with the second Liberty loan were
all held by the Federal Reserve Bank of Boston as custodian with
the exception of banks in New Haven, Hartford, and Waterbury,
Conn., when local banks acted in that capacity.



AOTTJAL REPORT OF THE FEDERAL RESERVE BOARD.

229

CERTIFICATES OF INDEBTEDNESS.

The financing of Liberty loan subscriptions and tax payments by
purchase of certificates of indebtedness issued from time to time by
the Treasury Department has been of great value in relieving the
pressure that would otherwise have been felt in the money market
of the district through the withdrawal at one time of the large sums
of money involved. The banks and the larger business houses have
appreciated the advantage of the method of financing and have subscribed liberally as each issue of certificates of indebtedness has
been offered. Schedules 23 and 24 show in detail the amount of these
securities subscribed through the Federal Eeserve Bank of Boston
and other data of interest.
Redeposits were made with qualified depositary banks in connec-1
tion with each issue of certificates of indebtedness, in a similar man-';
ner as with Liberty loan subscriptions, the deposits being gradually
withdrawn by the Government as needs required. The payments by
credit in connection with the certificates of indebtedness are included
in the figures shown in Schedule 22.
LIBERTY LOANS.

Immediately following the announcement by the Secretary of the
Treasury of the initial offering of the first Liberty loan, a meeting of
the executive committee of this bank was held to consider the organization of a Liberty loan committee to distribute and handle all
details pertaining to the proposed issue of bonds. Representatives
from the more important bond houses were asked to meet and assist
in perfecting an organization to handle the necessary details pertaining to the bond issue. An organization was laid out covering
New England with the exception of Fairfield County, Conn.
The organization for both the first and second loans was practically the same. Special mention should be made of the important
part taken by the Boston bankers and brokers to whom is largely
due the great success of the distributing end of both Liberty loans.
The central committee was representative of the local financial interests and from that the executive committee was chosen.
The headquarters of the executive committee were at 50 State
Street, in rooms provided by Lee, Iligginsoii & Co. The Federal
Reserve Bank has since leased permanent quarters at 30 Kilby Street
for the Liberty loan committee.
In Boston some 79 committees representing the different lines of
trade were formed. In each of the banking centers throughout the
district local chairmen were chosen, for the most part prominent
bankers, and each heading committees representative of the locality.
There were 69 such committees in Maine, 47 in New Hampshire, 146



230

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

in Massachusetts, 51 in Vermont, 11 iri Rhode Island, and 61 in Connecticut. The governors and treasurers of the different States, the
mayors of the cities and other public officials, public-safety committees, labor organizations, all have assisted in making the Liberty
loans a success.
On the first Liberty loan, the minimum allotment for this district
was $240,000,000, the maximum being $300,000,000. Subscriptions
of $332,44:7,000 were received and allotments were made of
$265,017,900. On the second Liberty loan the minimum allotment
was $300,000,000, the maximum being $500,000,000, and subscriptions
were received of $476,950,050. Allotments were made of $407,713,700.
The basis of the maximum and minimum allotment on the first loan
was on the total banking resources of the district, which included
savings banks. On the second loan the allotment was on a similar
basis, with the exception that but 50 per cent of the savings banks'
resources were included. Full details in reference to the allotments
and subscriptions by States will be seen by referring to Schedule 25.
Schedules 26, 27, and 27A give further details in reference to payments made and various other matters relating to these two bond
issues.
WAR-SAVINGS CERTIFICATES.

In connection with the handling of the war-savings certificates
campaign, the Federal Reserve Bank has not taken the same active
part as it has in sales of Liberty loan bonds. The war-savings certificates campaign has been handled by an organization headed by
Federal appointees and has been entirely apart from the direction
and guidance of the Federal Eeserve Bank. This bank has acted
only as custodian of the certificates and stamps, delivering those
securities on the instructions of the committee.
FEDERAL RESERVE NOTE ISSUES.

During the year, as will be seen by Schedule 28, an increasing
amount of Federal Eeserve notes has been issued each month. This
has been brought about by two influences; first, by the nonissuance
of gold certificates of $10 and $20 denominations by the Treasury
Department, and, second, by the efforts of the Federal Eeserve Bank
to strengthen its reserve position through the acquiring of gold held
in the tills of member banks and in the pockets of the public, issuing
in place thereof Federal Eeserve notes. Banks in this district, both
member and nonmember, have responded very willingly to this bank's
suggestions that they do not pay out gold certificates but retain
them, exchanging them for Federal Eeserve notes.
As the demand for Federal Eeserve notes increased, it was found
advisable to carry a larger supply on hand not only in our own vaults,



DISTRICT NO. 1

BOSTON.

231

but in the subtreasury and with the Comptroller of the Currency at
Washington. At the present time there is available $106,700,000 of
such notes, a large part of which can be used at once and the balance
within 24 hours. Schedule 30 appended shows the amount of Federal
Eeserve notes of this bank returned to us by the other Federal Beserve Banks and the amounts of notes outside the district returned to
issuing banks by us. Schedules 28 and 29 show Federal Eeserve
notes issued and retired by the bank during the year.
While the Federal Eeserve Bank has furnished currency through
the issue of Federal Eeserve notes to a considerable extent, the bank
should have facilities for furnishing currency of all denominations
and kinds. The demand for pay-roll needs, with the increased activities in industry, has been felt increasingly during the year.
INTERNAL ORGANIZATION.

During the year there have been held 25 directors' meetings with
an average attendance of 8 members. The executive committee has
met 30 times and the average attendance has been 4.
At an early meeting of the board of directors, Mr. Daniel G. Wing,
president of the First National Bank of Boston, was reelected a member of the Federal Advisory Council.
The terms of Thomas P. Beal, class A director, and Charles A.
Morss, class B director, expired December 31, 1917. A new election
was held by member banks in group 1, who were represented by these
directors and they were unanimously reelected, there being no other
nominations made for the offices.
Mr. Frederic H. Curtiss was reappointed by the Federal Eeserve
Board as a director of the Federal Eeserve Bank of Boston for three
years ending December 31, 1920. He was redesignated as chairman
and Federal Eeserve agent.
Owing to the death of Mr. Walter S. Hackney on March 20, 1917,
who had been the class C director and vice chairman since October,
1914, Mr. Andrew J. Peters, former Assistant Secretary of the
Treasury, was appointed by the Federal Eeserve Board to fill the
vacancy caused by Mr. Hackney's death.
Mr. Alfred L. Aiken, who had been governor of the Federal Eeserve Bank since November, 1914, resigned to accept the presidency
of the National Shawmut Bank of Boston.
Mr. Charles A. Morss, formerly treasurer of the Simplex Wire &
Cable Co. of Boston, a class B director of the bank, was elected to
the position of governor, taking office on December 20, 1917. Mr.
Morss has been a close student of finance for many years, and has
been connected as director with several of the large local banks.



232

ANNUAL BEPOET OF THE FEDERAL RESERVE BOARD.

Mr. Florrimon M. Howe, who has been cashier of the bank since
November, 1914, resigned in December to accept the vice presidency
of the Industrial Trust Co. of Providence, R. I., and Mr. Chester C.
Biillen, formerly assistant cashier, was elected cashier.
The organization of the Federal Keserve Bank, both from the executive and the clerical staff, has had to be largely increased during
the year, owing to the additional activities of the reserve bank in
connection with its position' as fiscal agent for the United States
Government.
At the time of the first Liberty loan, the subscription department
and bond department was handled largely by volunteer forces, wTho
were liberally contributed by the local banking houses. I t was
deemed necessary, however, to establish in the bank a permanent organization to handle the details incidental to the second Liberty loan
and for the handling of future Government loans. A new plan of
reorganization of the entire bank was laid out. This new plan of
reorganization led to the election of Mr. William Wiliett, former
assistant auditor of the bank, as assistant cashier in charge of the
clearing department. Mr. Harry A. Saunders, formerly head bookkeeper, was appointed assistant cashier and put in charge of the subscription department. Mr. Chester C. Bullen, assistant cashier, being
put in charge of the entire bond department. Mr. Harry F. Currier,
former national bank examiner, was appointed chief auditor. With
the approval of the Federal Reserve Board, Mr. Russell B. Spear
was selected by the Federal Reserve agent as assistant Federal
Reserve agent, as provided in the recent amendment of the Federal
Reserve Act, and, pending the organization of a special department,
the handling of the certificates of indebtedness, Government depositaries, and securities deposited by banks against Government funds,
has been carried on in the Federal Reserve agent's department.
With the increase of the bank's activities, the greatest problem has
been the inadequacy of its present banking quarters, and although
considerable more floor space has been added during the year and
the clerical force increased from 70 to 256, still it is most important
that larger banking quarters be secured and this force materially
increased. A committee of the directors has this matter under consideration.
CLEARINGS AND COLLECTIONS.

During the year the check collection department continued to expand with an increasing number of banks sending their checks to
the bank for collection. About 25 banks, having a large number of
items on points in other Federal Reserve districts, have taken advantage of the direct routing feature of this system and send their




DISTRICT NO. 1

BOSTON.

233

items direct to other Federal Eeserve Banks. About 83 banks in
other districts are sending items direct to this bank. The charge
for collecting remains the same? at nine-tenths of a cent per item.
It is noticeable that some banks are sending only their larger items,
their smaller ones going through their city correspondents. In
spite of the increase in items handled, it has only been necessary to
make a slight increase in the number of clerks.
A comparison of figures with other Federal Eeserve Banks shows
a very much larger percentage of checks outside of the Federal
Keserve city handled in this district than in any other. This is due
to a considerable extent to the fact that the New England banks
were practically all accustomed to remit to the Boston Clearing
House before the establishment of the present collection system.
Schedules 31 and 32 contain detailed statistics on the activities
of this department.
GOLD-SETTLEMENT FUND.

The gold-settlement fund, the operation of which was outlined in
the report of 1915, has continued to become an increasingly important factor in the settlement of exchange without actual transfer of
funds from one Federal Reserve Bank to another. During the year
the transfers through this fund were largely increased, as will be
seen from Schedule 33. The cost of making these transfers is infinitesimal in comparison with the vast total of transfers made. Late
in the year the Boston subtreasury began settling its balances by
transfers on the books of this bank instead of by the actual exchange of currency, and this has added to the volume of transfers
through this fund.
BANK OF ENGLAND STERLING GOLD ACCOUNT.

Following an arrangement made between the Federal Eeserve Bank
of New York and the Bank of England establishing relations as
correspondents in which all the Federal Eeserve Banks might participate, this bank made payment in New York for account of the
Bank of England on June 7, 1917, of $3,675,000 in gold, the Bank
of England setting aside and holding a similar amount in "earmarked gold " in London subject to this bank's orders.
CONCLUSION.

There is no better evidence of the important position that the
Federal Eeserve Bank of Boston has attained at the present time
than a survey of the balance sheet shown in schedule 2.
The bank has been tested during the present year in the financing
of the great war loans and increased activities of the local industries



234

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

to such an extent that its policy of discount is closely watched, and
its officials are called into consultation whenever any new problem
arises, which frequently occurs, owing to war conditions.
In outlining the bank policy due regard has been taken of the
different interests affected and from the broadest national viewpoint.
That the war financing has been accomplished without undue disturbance to the local money market has impressed not only the banks but
the public at large of the power, strength, and insurance which the
Federal Reserve Bank of Boston and the Federal Reserve system
furnishes for the handling of commerce and business of the United
States.
SCHEDULE 1.—Income and expense.
1916

Expense.
Paid in lieu of dividends
on stock canceled
Current expense
Directors7 fees
Rent
Salaries
Exchange paid
Cost of Federal Reserve
notes
Assessment for expense,
Federal Reserve Board..
Charged off:
Organization
Furniture and equipment
Difference account....
Cost of unissued cur-

1917

Income.

1916

15,141.36

Balance January 1, 1917...
$3,926.85
51,288.75 Discount from member
banks on—
5,781.10
Notes discounted
15,246. 49
$39,641.83
Rediscounts secured
93,193. 65
by United States
69.10
bonds.
08,954.48

17,703.57

21,226.35

$2,804.17
25,357.37
5,712.35
15,139.13
77,085.38
.40

Collateral notes
Trade acceptances

1917
$11,596.56
302,612.23
153,039.85

Expenses
Transit

15,352.04
88.98

altera-

paid

in-

department,

2,153.23
1,508.14

87,962.26
27,502.79

43,303.20
8,973.83
814. 83 Discount on open-market
purchases:
33,666.91
Bankers' acceptances,
7,709.16
domestic
10,450.00
Bankers' acceptances,
foreign
229,147.58
Trade acceptances,
1,462.24
foreign
. . . .
8,255.87
State, city, and town
78,578.27
notes

571,117.13

315,435.01

Repairs and

17,301.73

507,600.03

57,194.16

94,784.86

Interest on United States
securities
Appreciation and profit on
United States securities..

107,831.44
377,903.14
16,662.72
5,202.73

To balance

258,527.42

886,294.79

450,213.90 1,209,605. 24
1917
Dividends paid member
banks
Reserve for depreciation
on United States securiBalance to surplus account
including payment to
United States Govern-




597,828.54

105,888.46

10,558.55

6,938.15
6,105.39

3,147.98

361.52

450,213. 90 1,209,605.24

1918

246,930.86

11,101.60

77,769.16
Commissions
Penalties for deficient
Service charges
Sundry profits

20,575.00

1917

1918

Jan. 2, balance forward... 258,527.42

886,294.79

258,527.42

886,294.79

11, 596. 56

150,200.00

138,260.25
11,596.56
258,527. 42

150,200.00
886,294. 79
Jan. 3, balance

DISTRICT NO. 1

BOSTON.

235

SCHEDULE 2.—Comparative balance sheet Dec. 31, 1016, and Dee. 31, 1917.
Dec. 31,1916.

Dec. 31,1917.

RESOURCES.

Earning assets:
Bills discounted for member banks
Acceptances purchased
State, city, and town notes
United States bonds
United States 1-year Treasury notes—
Reserve cash:
Gold coin and gold certificates
Gold settlement fund
Gold redemption fund for Federal Reserve notes
Bank of England sterling gold account..
Other lawful money
With Federal Reserve agent:
Gold against Federal Reserve notes
Other resources:
Interest accrued on United States bonds
Check collection expense (recoverable)..
Expense Liberty loan (recoverable)
Expenses paid in advance
Cost of FederalReserve notes (unissued)
Due from Liberty loan subscriptions...
Due from Federal Reserve Banks
Items in process of collection
Due from banks (Government deposits)
Exchanges for clearing house and cash
items
Federal Reserve notes and other cash
on hand

$3,745,315.28
12,725,167.81
890,002.23

$65, 882,359.35
037,506.04

1,332,000.00
1,000,000.00

$19,692,485.32

609, 750. 00
\, 194,000.00
• $77,723,615.39

11,774,857.50
14,737,000.00

690,900.00
977,000.00

427,683.00

000,000.00
675,000.00
574,566.00
26,939,540.50

44,917,466.00

113,518,385.00

40,896,820.00

13,870.83
8,384.44
1.564.72
29,230.20

i44,'i67.62

4,836,131.06
12,592,167.39
328,149.59

21,958.75

118,035.40
"*i5,'667,*383*44
66,489,691.55
3,216,597.70
4,661,035.81

65,257,119.92

Total assets.

815,595.87

253,196,771.66

4,989,700.00

5,858,450.00

LIABILITIES.

Capital fund:
Capital paid in
Surplus
Profit and loss account
Deposits:
Due to member banks reserve account..
Due to Federal Reserve Banks collected
funds
Due to banks uncollected funds
Duo to United States Government
general account
Due to United States special account...
Cashier's checks outstanding
Federal Reserve notes outstanding
Other liabilities:
Unearned discount and interest
Total liabilities..

258,'527.*42"
56,757,135.68

82,842,197.76

1,058,988.16

3,870,139.46
13,780,544.93

2,130,617.72
941.30
i 13,518,385.00
61,209.64
65,257,119.92

Liability for rediscount with other Federal
Reserve Banks

i These items not included in total.

34365°




2,419,414.94
66,489,691.55
20,416.38
77,296,820.00
468,896.64
253,196,771.66
44,477,789.09

236

ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD.
SCHEDULE 3.—Money rates in Boston, 1917.
Jan.

Mar.

3 -6

3 4

3 -44
3-41
3H

3^-4
4-44
4 -5

4f-4|

Demand money
Commercial paper
Brokers' 6 months' paper . . .
Year money
Acceptances.
Town notes
Certificates of indebtedness..

Feb.

4i-4f

r!

1.00-3.230 2.09-2.70

Apr.

4J-5
4J-5
44-41
21-34
24-34
1.46-4.00 3-50-4.12
2

May.

June.

4 -5
41-0

4H

5 -6
5-6
5
3-3J

5
3 -3*
117-4.55 4.21-5. 39
3 -3|

i

July.

Sept.

Oct.

Nov.

Dec.

44-6
44-5i
4f-5i

Demand money
Commercial paper
Brokers' 6 months' paper...
Year money
Acceptances
Town notes
Certificates of indebtedness.

Aug.

44-5
4f-5i
5-54

44-6
5-6
5 -6
5 -5|
3|-4
4.27-4.34
34-4

4 -6
54-6
5|-6
6

4 -6

44-6
5|-6

5|5

5J-54
3-4
3.98-4.93
31

3.92-4.39

4.24-4.J
4

4.55-4.90
4

3f-4
4.58-5.10
4

SCHEDULE 4.—Bills discounted, including member banks' collateral notes held at
close of business each Friday.
In
Millions
'100
90

IS
\

80
70
60
50

I
1

40
30
h

20
10

J

0

Jan.

/

A
/
/

A

Feb. Mar. Apr. May June July Aug. Sept Oct Nov. Dec.




DISTRICT JSTO. 1
SCHEDULE 5.—Total investments

BOSTON.

287

at close of business each Friday.
100

100

ft

90
B
O
>
'

70

I

V

90
80

70,

€0

60

50

50

A
\V
/
/

.40
30
20
s

10

/N

^

V

/

40

\ /

A

30
20

/
10

0

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.
SCHEDULE 6.—Amount of acceptances held at close of business each Friday.
In
Millions
35

35

30

30

25

25

)

20

A
15

10

W V

/

\J

/

\/

1

\

\

5

0

Jar?. Fed, Mar., Apr. May June




July

Aug. Sept Oct. Nov. Dec.;

20

238

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
SCHEDULE 7.—Acceptances

Foreign acceptances.
Month.
Items.

Amount.

purchased

for own

Domestic acceptances.

Low
and
high
rate.

Items.

Amount.

Low
and
high
rate.

account.

Foreign trade acceptances.

Items.

Low
and
high
rate.

Amount.

P.ct.
January
February..
March
April
May
June
July
August
September..
October
November..
December..
Total..

90 $2,522,546.66
187 4,461,805.32
163 4,803,854.46
786,937.47
17
233 9,077,342.66
185 6,153,140.45
67 2,300,664.79
228 6,068,80S. 44
409 10,654,363.60
97 4,179,893.80
373 7,831,447.47
123 3,891,621.91

2i-34
24-34
2^-34
38-34
3 -34
3-34
3 -31
3i-4
31-4
31-31
31-41-

P.ct.
20
19
8
20
57
70
22
49
102
54
79
266

$516,292.67
800,416.62
353,407.60
458,149.37
1,140,471.04
2,390,740.88
1,102,781.58
1,253,165.94
3,958,850.87
1,400,099.76
3,505,018.51
8,508,144.61

24 $229,553.16
101 2,020,406.37
8
60,733.74
50
499,881.92
45
597,664.73

766 25,387,539.45

2,172 62,732,427.03

228

3,408,239.92

SCHEDULE 8.—Acceptances purchased for oilier Federal Reserve
Foreign acceptances.
Month.
Items.

Amount.

4-4
4-4
4-4
4-4
4-4

Banks.

Domestic acceptances.

Low and
high rate. Items.

Amount.

February..
April.......
May
June
July
August
September.
November.
December..

252
124
255
118
8
281
78
211
584

$6,207, 883.16
3,597, 019.89
6,392, 551.36
5,845, 222.26
686, 000.00
9,854, 040.11
3,244, 386.64
3,88i: 947.48
10,856: 513.55

15
30
44
32
10
19
4
13
289

$326,327.40
1,005,828.17
1,337,453.16
658.055.21
307.853.22
735.022.75
173.805.76
447,560.70
10,514,551.63

Total,

1,911

50,555,564.45

456

Low and
high rate.
Per cent.

15,506,458.00

Ill
3 -3f
3 -3?
3-3|

3f-3f
31-41

SCHEDULE 9.—Acceptance liability of national banks in New England at date of
Comptroller's calls.
Mar.
May
June
Sept.
Nov.

5, 1917
1, 1917
20, 1917
11, 1917
20, 1917




-

$24, 372, 000
25,459,000
33,147, 000
35, 082, 000
44, 500, 000

DISTRICT NO. 1

BOSTON.

239

SCHEDULE 10.—Cash reserve at close of business each Friday.
PerCenr.
90

60

A
60

50

Jan. Fed. Mar. Apr. May June July

/lay. Sept Oct. Nov.

Dec.

SCHEDULE 10A.—Total gold reserve at close of business each Friday.
Mi/lions
110

no

<nalf "ansfet*Nafi ?na/i lanfc Fvgserv?stoF ^derat

^i/e Bat

u
.I

100
90

100
90

A

/
80

/

A

A
\ / /.

70
60
/

50
••/~N

1
40
30 / \
I
2

nl

20
10

u

\

/ VA
A
'\A

/

I

J

80

\

1 /

\
\
\

/

A/

70
60
50
40

A

t—
1

M
\

l — Inch des G old'w
renf
2 - Gold heldb y Bar It
\
3 - Gold v/Y/r Ac lenta ndBi.'nkeq vali'zt d,Act

30
\,
20
v
10

0

Jan. Feb. Man Apr. May June July Aug. Sept Oct. Nov. Dec.



240

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
SCHEDULE 11.—Member banks liquidated during 19.17.

Name of bank.

Location.

Shares
surrendered.

Disposition.

Hadley Falls National Bank... Holyoke, Mass
Home National Bank
Second National Bank
Bangor, Me

/Formed Hadley Falls Trust Co., Hol\ yoke, Mass.
Consolidated .with Merrill Trust Co.,
Bangor, Me.
Succeeded by Ware Trust Co
Ware National Bank
Ware, Mass
Consolidated with Worcester Bank &
Worcester National Bank
Worcester, Mass...
Trust Co.
First National Bank
Auburn, Me
Succeeded by First Auburn Trust Co.
Brooks National Bank
Torrington, Conn.
Succeeded by Brooks Bank & Trust Co.
Taunton National Bank.
Taunton, Mass
Succeeded by Bristol County Trust
Co.
Stoneharo. National Bank
Stoneham, Mass
Succeeded by Stoneham Trust Co
Rochester National Bank
Rochester, N. H
Succeeded by Rochester Trust Co
First National Bank
Wiscasset, Me
Succeeded by Lincoln County Trust
Co.
Norwood National Bank
Norwood, Mass
Succeeded by Norwood Trust Co
by South
South Berwick National Bank. South Berwick, Me.. Succeeded Trust Co. Berwick Savings
Bank &
Total.

"I

180
210
180
234
480
135
75
465
36
60
36
120
84
2,295

SCHEDULE 12.—New members.
Name of bank.
North Brookfield National Bank
Back Bay National Bank
Tanners National Bank
Second National Bank
Commonwealth Trust Co
Winchester Trust Co
International Trust Co
Fitchburg Bank & Trust Co
Norwood Trust Co.
American Trust Co
Newton Trust Co
Industrial Trust Co
Metropolitan Trust Co
Union & New Haven Trust Co
Charles River Trust Co
Winchester National Bank
Worcester Bank & Trust Co

Shares
subscribed

Location.
North Brookfield, Mass
Boston, Mass
Woburn, Mass
Maiden, Mass
Boston, Mass . .
Winchester, Mass
Boston, Mass
Fitchburg, Mass
Norwood, Mass
Boston, Mass
Newton, Mass
Providence, R . I
Boston, Mass
New Haven, Conn
Cambridge, Mass
Winchester, Mass....
Worcester, Mass

38
150
68
75
900
1,800
450
120
1,800
480
4,200
360
690
240
39
1,050

Total

12,533

SCHEDULE 13.—State banks admitted to system.
Date of
admission.
1917.
Feb. 12
May 29
June 9
July 26
Aug. 11
31
Nov. 5
9
Dec 4
11
14

Name of bank.

Commonwealth Trust Co
Winchester Trust Co
International Trust Co
Fitchburg Bank & Trust Co*..
Norwood Trust Co
American Trust Co
Newton Trust Co
Industrial Trust Co
Metropolitan Trust Co
,
Charles River Trust Co
Union & New Haven Trust Co.
Worcester Bank & Trust Co....




Location.

Boston, Mass
Winchester, Mass
Boston, Mass
Fitchburg, Mass
Norwood, Mass
Boston, Mass
Newton, Mass
Providence, R. I
Boston, Mass
Cambridge, Mass
New Haven, Conn
Worcester, Mass

Capital
and
surplus.
500,000
125,000
000,000
750,000
200,000
000,000
800,000
000,000
600,000
400,000
150,000
750,000

Deposits
when
admitted.
$18,520,000
530,000
14,772,000
3,485,000
1,771 000
19,905,000
3,629,000
58,765,000
3,559,000
1,881,000
3,156,000
19,790,000

DISTRICT NO. 1

BOSTON.

241

SCHEDULE 14.—Borrowings of national banks in Neiv England.
Bills
payable
with
Federal
reserve
bank.1

Date.

Dec. 27,1916.
Mar. 5,1917..
May 1,1917...
June 20,1917.
Sept. 11,1917.
Nov. 20,1917.

AcceptRedisances redis- counts of
Money
counted
Liabilities
Total 1 included
Federal
borrowed
for
elsewhere. rediscounts.1 borrowings. in total Reserve
Bank
borrow- of Boston.2
ings.1

$610,000 $4,633,000 $14,547,000 $19,790,000 $8,849,000
110,000 3,089,000
16,299,000 19,498,000 8,733,000
1,740,000 3,077,000 13,098,000 17,915,000 6,951,000
7,445,000 8,131,000
21,376,000 36,952,000 6,654,000
5,177,000
6,124,000 15,883,000 27,184,000 5,738,000
5,439,000
6,701,000 45,479,000 57,619,000 15,496,000
1
2

$4,804,000
2,535,000
4,791,000
15,693,000
13,757,000
32,970,000

From reports to Comptroller of the Currency.
As shown by books of Federal Reserve Bank of Boston.

SCHEDULE 15.—Number, capital, and surplus, and deposits, by States, of eligible
nonmember banks.
Number
banks.

Connecticut
Maine
Massachusetts
New Hampshire . . . .
Rhode Island
Vermont.

-

. .

. . .

Total

Capital and
surplus.

25
37
80
8
10
23

$9,904,300
6,347,900
40,164,000
1,500,200
18,378,000
2,756,000

$56,828,000
59,498,000
269,846,000
8,970,254
154,161,000
30,836,000

183

State.

79,050,400

580,139,254

SCHEDULE 16.—Banks granted fiduciary powers under section Ilk
Federal reserve act.
Date.

Name.

Location.

1917
Jan. 29 Merrimack National Bank

of the

Powers granted,

Haverhill, Mass

First National Bank
Home National Bank
State National Bank
Webster& Atlas Nat ional Bank.
Aug. 20 Manufacturers National Bank..
20 Edgartown National Bank
Oct. 31 National Bank of Wareham

Deposits.

Bar Harbor, Me....
Brockton, Mass
Windsor, Vt
.
Boston, Mass
Lynn, Mass
Edgartown, Mass.. .
.
Wareham, Mass

29
Mar. 16
May 14
June 18

31
Nov. 5
10
14
Dec. 28

. Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do.
Trustee, executor, and administrator.
Trustee, executor, administrator and
registrar of stocks and bonds.
Do.
Trustee, executor, and administrator.
Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Worcester, Mass
Mechanics National Bank
Do.
National State Capital Bank.... Concord, N. H
Do.
Plymouth, Mass...
Plymouth National Bank
Do.
Brattleboro, Vt
Vermont National Bank
Do.
Leominster, Mass..
Merchants National Bank

SCHEDULE 17.—Banks granted permission to accept up to 100 per cent of their
capital and surplus during 1917.
Blackstone Canal National
Bank,
Providence, R. I.
Safety Fund National Bank, Fitchburg, Mass.
Hartford-Aetna National Bank, Hartford, Conn.




Mechanics National Bank, New Bedford, Mass.
Massasoit-Poccaset
National
Bank,
Fall River, Mass.
National Union Bank, Boston, Mass.

242

ANNUAL REFOBT OF THE FEDEKAL RESERVE BOARD.
SCHEDULE 18.—Discount rates.

Maturities of
15 days
or less.

Date.

It

Dec. 7,1916
Mar 21,1917..
June 12,1917
Oct 23 1917
Dec 5,1917. .
Dec 12,1917.

3i
34
4

AgriculMaturi- tural and Trade
ties of live-stock Accept16 to 90 paper 91 ances.
days.
days to 6
months^

4
4
4
4

f

5
5
5
5
5
5

Commodity
paper.

15 days
or less.

34
34
i3i
4
4

Secured by United
States certificates
of indebtedness
or Liberty Loan
Bonds.

(3)

4
4
4
4
4

2

34
3§
34
34

16 to 90
days.

1

iJune 26, acceptances under 91 days, 4 per cent.
of nonmember banks, 4 per cent.
Merged with commercial paper rates of corresponding maturities on Dec. 5,1917.

2
Customers
3

SCHEDULE 19.—Reserves of national banks in Neto England as reported by
Comptroller of the Currency.
Date.
Dec. 27, 1916.
Mar. 5, 1917 .
May 1,1917..
June 20, 1917.
Sept. 11, 1917
Nov. 20,1917

Total reserve.
$172,535,000
189,557,000
190,443,000
170,872,000
i 56,725,000
56,069,000

Required
reserve.

Excess
reserve.

$111,335,000
119,637,000
117,143,000
111,832,000
55,823,000
54,766,000

$61,200,000
69,920,000
73,300,000
59,040,000
2
902,000
1,303,000

1 Cash in vault and due from national banks, not included as reserve, $108,250,000.
2 Deficiency.




243

DISTRICT NO. 1—BOSTON.

SCHEDULE

2O.-Member bank deposits at close of business each Friday.

In
Millions
100

oo
90

90

80

80

\ f

70

70

V

60

60

50

50

N
40

4<

30

3

20
2

10

0
Jan Feb. Mar. Apr. May'June July Aug.,Jept QG£




uec.

244

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

SCHEDULE 21.—Treasurer of United States, general account at close of business
each Friday.
In
Mil/ion,
is

70

70

60

60

L
50

50

4^

40

1

nr
i
A / 1 \ A1
iV
—

30

to

40

n

30

M

/ 1

io

/

• v

XT

ft

20

/\ 1 y
/ \! l

V

m

to

0

-If

n.

Feb. Mar.




Apr. May June

July

Aug. Sept Oct. Nov. Dec.

DISTRICT NO. 1—BOSTON.

245

SCHEDULE 22.—Amount toith Government depositaries each J Friday.
In
Mil/ions
200

HI]

190

Ii

180
170
160
150
140
130

\

120
110

100

I1

90

A

80

A

70

A

60

ji \

50
40
30

20

Xzi \\
V

I
/

\

10
0

\

A

May

V
June




July August Sept

Oct

Nov.

Dec.

246

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
SCHEDULE 23.—Certificates

of indebtedness

issued at

Boston.

Amount issued in each denomination (in
thousands of dollars).
Dated.

Due.

Rate.
$500

Mar. 29
Apr.
May
May
May
June
Aug.
Aug.
Sept.
Sept.
Oct.
Oct.
Nov.

June 29
25 June 30
1 ...do
10 July 17
25 July 30
8 ...do
9 Nov. 11
28 Nov. 30
17 Dec. 15
26 . . . d o
18 Nov. 22
24 Dec. 15
30 June 25

$1,000

$5,000

2,007
2,200
3,005
3,590
1,645
1,951
4,149
3,454
2,325
1,650

1,200
1,210
4,310
5,000
5,825
6,790
3,375
3,160
6,495
5,965
4,175
3,580

2
3
3
3
3i
31;
3i
3*
3*
4
4
4

301

Number of Paid for by
subcredit.
scrip$10,000 $100,000 tions.
3,800
790
4,050
3,700
4,370
3,920
3,620
4,460
8,030
16,630
16,510
13,490

U2
8,800

1
41
68
105
68
74
53
62
45
126
138
102
37

1,800
300
5,000
5,100
6,500
2,600
3,500
4,100
10,000
1,900

$5,450,000
3,652,000
6,500,000
4,593,000
5,195,000
12,245,000
21,349,000
27,590,000
20,090,000

Total
issued.

$3,000,000
13,800,000
2,000,000
12,167,000
11,200,000
18,200,000
19,400,000
15,140,000
12,171,000
22,174,000
30,149,000
33,010,000
20,921,000

i Federal Reserve Bank took 12 certificates of $250,000 each.
SCHEDULE 24.—Certificates of
Apr. 25,1917.

Amount allotted to subscriber.

$25 000 and less

Subscriber.

Total
amount.

indebtedness.

May 1,1917.
Subscriber.

Total
amount.

May 10,1917.

SubTotal
scrib- amount.
er.

May 25, 1917.
Subscriber.

Total
amount.

$25,000 t o $50,000
$50,000 t o $100,000
$100,000 to $250,000
$250,000 to $500,000
$500,000 t o $1,000,000
SI 000 000

8
10
6
9
3
2
3

$140,000
500,000
600,000
2,110,000
1,200,000
1,750,000
7,500,000

51
11
3
3

$570,000
485,000
275,000
670,000

59
17
12
8
4
3
2

$668,000
761,000
1,003,000
1,635,000
1,850,000
2,750,000
3,500,000

36
11
9
7
1
1
3

$432,000
506,000
770,000
1,292,000
400,000
600,000
7,200,000

Total

Over
Over
Over
Over
Over
Over

41

13,800,000

68

2,000,000

105

12,167,000

68

11,200,000

June 8,1917.

Amount allotted to subscriber.

$25 000 and less
Over $25,000 to $50,000
Over $.50,000 t o $100,000
Over $100,000 to $250,000
Over $250,000 t o $500,000
Over $500,000 to $1,000,000

Over $1 000,000
Total

Subscriber.

Total
amount.

Subscriber.

Total
amount.

21
13
7
6
1
1
4

$290,000
645,000
635,000
1,180,000
400,000
750,000
15,500,000

24
10
12
10
4

$364,000
410,000
960,000
1,680,000
1,326,000

2

10,400,000

74

18,200,000

53

19,400,000

62

15,140,000

Oct. 18, 1917.

SubTotal
scrib- amount.
er.

$25,000 t o $50,000.
$50,000 t o $100,000
$100,000 t o $250,000
$250,000 t o $500,000
$500,000 to $1,000,000
$1,000,000

15
11
6
5
5
1
2

$277,000
540,000
575,000
1,150,000
1,900,000
729,000
7,000/000

58
26
28
12
6
8

Total

45

12,171,000

134




Total
amount.

$423,000
. 470,000
1,230,000
2,107,000
1,520,000
2,950,000
9,500,000

Amount allotted to subscriber. SubTotal
scrib- amount.
er.

Over
Over
Over
Over
Over
Over

Subscriber.

Aug. 28,1917.

27
10
14
12
4
4
3

Sept. 26,1917.

$25 000 and less

Aug. 9, 1917.

Oct. 24, 1917.

SubTotal
scrib- amount.
er.

Sept, 17, 1917.
Subscriber.
48
28
16
12
15
4
3>
126

Total
amount.
$649,000
1,233,000
1,466,000
2,300,000
6,426,000
4,000,000
6,100,000
22,174,000

Nov. 30, 1917.

SubTotal
scrib- amount.
er.

20,200,000

35
24
19
8
9
2
5

$525,000
1,060,000
1,725,000
1,700,000
4,000,000
2,000,000
22,000,000

11
11
4
2
6
1
2

$151,000
500,000
360.000
460,000
2,650,000
800,000
16,000,000

30,149,000

102

33,010,000

37

20,921,000

$806,000
1,129,000
2,540,000
2,674,000
2,800,000

DISTRICT £T0. 1

SCHEDULE 25.—The Liberty
Number of
subscribers.

247

BOSTON.
loans.

Subscriptions.

Allotment.

State.
First
loan.

Second
loan.

First
loan.

Second
loan.

First
loan.

Total.

Second
loan.

Total.

68,539 68,575 $15,186,800 $24,002,850 $39,189,650 $14,332,300 $22,996,100 $37,328,400
Maine
New Hampshire... 55,374 48,548 10,515,150 15,992,900 26,508,050 9.89T,500 15,484,400 25 381 900
33,418 33,769 7,377,650 10,193,250 17,570,900 6^92,150 10,061,550 17,053,700
Vermont
613,651 444,829 234,747,000 325,599,800 560,346,800 177,236,400 273,241,600 450,478,000
Massachusetts
82,391 51,429 25,377,700 38,803,450 64,181,150 23,073,900 33,466,050 56,539,950
Rhode Island
117,418 99,491 39,283,300 62,357,800101,641,100 33,485,650 52,064,000 85,949,650
Connecticut
970,791 746,641 332,447,600J476,950,050 808,427,650 265,017,900 407,713,700 672,731,600

Total
Additional allotment transferred
from
Philadelphia

816,300

Grand total.

408,530,000

SCHEDULE 26.—Subscriptions to Liberty loan bonds.
First Liberty loan.
Day.

Total.

$545,800
731,700
825,150
1,168,400
716,900
2,614,350
2,175,000
5,267,300
4,861,750
1,960,700
6,029,800
575,600
29,142, 700
5,959,500
15,386,750
11,932,850
4,524,400
5,146,900
8,266,850
7,493,000
8,794,000
12,817,250
11,710,300
12,785,900
26,073,650
144,941,100

$545,800
1,277,500
2,102,650
3,271,050
3,987,950
6,602,300
8,777,300
14,044,600
18,906,350
20,867,050
26,986,850
27,472,450
56,615,150
62,574,650
77,961,400
89,894,250
94,418,650
99,565,550
107,832,400
115,325,400
124,119,400
136,936,650
148,646,950
161,432,850
187,506,500
332,447,600

Date.
May 16
May 17
May 18
May 19
May 21
May22
May23
May 24
May 25
May 26
May28
May 29
May31
June 1
June 2
June 4
June 5
June 6
June 7
June 8
June 9
June 11
June 12
June 13
June 14
June 15

Second Liberty loan.

1917.

Day.

Date.
1917.
Oct. 3
Oct. 4
Oct. 5
Oct. 6
Oct. 7
Oct. 8
Oct. 10
Oct. 12
Oct. 1 3 . . .
Oct. 15
Oct. 16
Oct. 17
Oct. 18
Oct. 19
Oct. 20
Oct. 22
Oct. 23
Oct. 24
Oct. 25
Oct. 26
Oct. 27

$12,536,000
6,425,000
7,702,000
2,616,000
6,341,000
6,540,000
6,749,000
10,525,000
9,291,000
9,365,000
18,243,000
19,505,000
26,144,000
27,965,000
16,451,000
19,996,000
32,136,000
52,770,000
46,378,000
49,270,000
90,603,000

Total.
$12,536,000
18,895,000
26,647,000
29,300,000
35,546,000
42,183,000
48,629,000
59,114,000
68,381,000
77,737,000
95,879,000
115,385,000
141,516,000
169,338,000
185,789,000
205,743,000
237,875,000
290,690,000
337,069,000
386,347,000
476,950,000

SCHEDULE 27.—Liberty loan subscriptions and allotments through Federal
Reserve Bank of Boston.
First Liberty loan.

Second Liberty loan.

Total
subscribed.

Total
allotted.

S50-$10,000
$10,050-$100,000
$100,050-$250,000
Over $250,000

$203,265,000
65,505,000
22,875,000
40,802,000

$203,265,000
39,303,000
10,294,000
12,155, 000

Total

332,447,000

265; 017,000

Size of subscription.




Total
subscribed.

Total
allotted.

$50-$10,000
$10,050-$50,000
$50,050-$100,000
$100,050-4200,000
$200,050-$l ,000,000
Over $1,000,000

$186,136,050
73,581,100
50,363,350
31, 734, 450
109,935,100
25,200,000

$186,136,050
73,581,100
45,327,050
23,800,850
66,268,650
12,600,000

Total

476,950,050

407,713,700

Size of subscription.

248

ANNUAL BEPOBT OF THE FEDERAL RESERVE BOARD.
SCHEDULE 27A.—Charade?* of Liberty

loan

payments.

FIRST LOAN.

By cash.

By credit
Government
deposits.

$71,155,767.52
90, 724,358.88

$55,851,455.32
173,622.11

161,880,126.40

56,025,077.43

Date.
June 28
Aug. 30 i
Total

Certificates of
indebtedness.

Accrued
interest.

Total.'

$43,758,000.00 $170,765,222.84
1,330.000.00
92,227,980.99
45,088,000.00

$89,503.84
513,202.99

262,993,203.83

602,706.83

SECOND LOAN.
2 per cent payments.
Cash sales
Nov. 15 .
Dec. 15

$4 055 738.00
14 345, 150.00
55 630 311.50
14, 183, 028.28

S40 435 000 00

208,742.00
17 329,250.00
393,488.00
73, 869.420.00

$106, 799. 83

88, 114, 227.78

Total«

$5,153,004.00
3,084,100.00
170,328,176.50
59,793,191.55
238,358,472.05

40, 435 000. 00

366, 800,900.00

106 799. 83

1
8

Includes all payments after June 28,1917.
Final payment is due Jan. 15,1918.

SCHEDULE 28.—Federal Reserve notes issued.
Denomination.

1915

1916

1917

Total.

Fives
Tens
Twenties...
Fifties
Hundreds..

$3,620,000
4,680,000
640,000
600,000
980,000

$6,226,600
3,965,600
88,200
42,000
102,300

$12, 700,000
39,880,000
13,760,000
3,460,000
5,920,000

$22,546,600
48,525,600
14,488,200
4,102,000
7,002,300

Total

10,520,000

10,424,700

75,720,000

96,664, 700

SCHEDULE 29.—Federal Reserve notes
January.

February.

Fives
Tens
Twenties...
Fifties
Hundreds..

$193,650
209,100
6,900
3,250
4,100

$349,955
372,110
36,110
13,-850
53,200

Total

417;,000

825,225

Denomination.

Denomination.

September

March.

April.

391,650

June.

July.

$432,200
260,800
29,300
17,000
22,300

$255,200
141,000
12,000
1,800
1,100

$230,470
267,300
23,200
16,600
32,100

$531,450
557,100
2,800
1,050
1,300

761,600

411,100

569,670

1,093,700

October. November. December.

Fives
Tens
Twenties..
Fifties
Hundreds.,

$857,600
327,725
33,210
1,800
2,400

$834,700
446,400
74, 900
36,450
62,000

81,278,110
788, 205
87,600
22,200
22,400

$985,650
942, 920
106,200
16,750
32,400

Total

1,222,735

1,454,450

3,198,515

2,083,920




August.

May.

$264,445 $214,900
149, 800
189,305
12, 700
2,100
32,250
12,750
13,300
12,100
512,000

redeemed.

Total.

$6,428,330
4,651,765
427,020
175,750
258,700

ReRedeemed deemed
by
by
United Federal
States Reserve
Treasury. agent.
$793,330 $5,635,000
732,765 3,919,000
51,020
376,000
25,750
i50,000
28,700
230,000

11,941,565 1,631,565 10,310,000

DISTRICT NO. 1

249

BOSTON.

SCHEDULE 30.—Federal Reserve notes of the Federal Reserve Bank of Boston
received from other Federal Reserve Banks, and notes of other Federal
Reserve Banks returned by Federal Reserve Bank of Boston to bank of issue.
Received.
1916

Returned.
1916

1917

New York
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco

$1,361,750
133,380
13,820
15,020
19,465
90,500
11,480
10,440
1,785
4,420
18,240

$3, 064,200
368,000
38,915
47,500
135,400
232,500
53,450
15,000
8,815
283,695
29,025

•3,039,000
180,000
136,000
185,000
112,000
24,000
28,000
68,500
49,000
74,000
57,000

$9,552,800
634,700
352,900
263,900
193,200
347,800
100,900
142,200
126,600
141,400
156,500

Total...

1,680,300

4,276,500

3,952,500

12,012,900

SCHEDULE 31.—Volume of checks handled for members and for other
Reserve Banks, Jan. 1, 1917, to Dec. 31, 1917.

Date.

By whom deposited.

Drawn on New Eng1 a n d, including
Boston.
Items.

Jan

Members district No. 1
Other Federal Reserve Banks
Total

Feb... Members district No. 1
Other Federal Reserve Banks
Total
Mar... Members district No. 1
Other Federal Reserve Banks
Total
Apr... Members district No. 1
Other Federal Reserve Banks
Total
May... Members district No. 1
Other Federal Reserve Banks
Total
June... Members district No. 1
Other Federal Reserve Banks
Total
July... Members district No. 1
Other Federal Reserve Banks
Total
Aug... Members district No. 1
Other Federal Reserve Banks
Total

Amount.

929,029 $211,442,054
82,156 69,467,250

Drawn on other
districts.
Items.

Amount.

Federal

Total.
Items.

Amount.

75,036 $76,532,661 1,004,065 $287,974,715
82,156 69,467,250

1,011,185 280,909,304

75,036

76,532,661 1,086,221 357,441,965

764,681 200,232,603
72,938 66,896,145

58,600

81,996,602

837,619 267,128,748

58,600

81,996,602

896,219 349,125,350

916,827 255,083,791
88,453 82,912, 248

69,428 104,044,163

986,255 359,127,954
88,453 82,912,248

1,005,280 337,996,039
907,369 269,959,036
94,424 93,634,390

823,281 282,229,205
72,938 66,896,145

69,428 104,044,163 1,074,708 442,040,202
67,867 118,346,778

975,236 388,305,814
94,424 93,634,390

1,001,793 373,593,426

67,867 118,346,778 1,069,660 481,940,204

990,372 313,277,248
104,794 100,449,534

72,090 120,536,944 1,062,462 433,814,192
104,794 100,449,534

1,095,166 413,726,782

72,090 120,536,944 1,167,256 534,263,726

990,636 376,892,158
96,428 106,836,301,

73,771 145,650,156 1,064,407 522,542,314
96,428 106,836,301

1,087,064 483,728,459

73,771 145,650,156 1,160,835 629,378,615

966,518 385,506,704
97,827 106,362,288

73,512 154,076,421 1,040,030 539,583,125
97,827 106,362,288

1,064,345 491,868,992

73,512 154,076,421 1,137,857 645,945,413

933,950 405,192,613
99,024 101,330,698

76,077 143,438,330 1,010,027 548,630,943
99,024 101,330,698

1,032,974 506,523,311

76,077 143,438,330 1,109,051 649,961,641

Sept... Members district No. 1
Other Federal Reserve Banks
Total

866,931 348,442,753
98,289 99,602,284
965,220 448,045,037

78,427 131,225,648 1,043,647 579,270,685

Oct.... Members district No. 1
Other Federal Reserve Banks
Total .

1,040,717 415,574,376
117,360 126,244,959

97,447 155,269,617 1,138,164 570,843,993
117,360 126,244,959

1,158,077 541,819,335

97,447 155,269,617 1,255,524 697,088,952




78,427 131,225,648

945,358 479,668,401
98,289 99,602,284

250

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

SCHEDULE 31.—Volume of checks handled for members and for other

Federal

Reserve Banks, Jan. 1, 1911, to Dec. 31, i£i7—Continued.

Date.

Drawn on New Eng1 a n d, including
Boston.

By whom deposited.

Items.

Amount.

1,000,347 $488,767,678
Nov... Members district No. 1
120,246 149,586,318
Other Federal Reserve Banks
Total. ..
1,120,593 638,353,996

Drawn on other
Districts.
Items.

Total.

Amount.

Items.

Amount.

93,904 $155,026,132 1,094,251 $643,793,810
120,246 149,586,318
93,904 155,026,132 1,214,497 793,380,128

1,024,260 467,096,007 102,094 166,494,366 1,126,354 633,590,373
Dec... Members district No. 1
Other Federal Reserve Banks
140,652 157,883,533
140,652 157,883,533
1,164,912 624,979,540 102,094 166,494,366 1,267,006 791,473,906

Total
Grand total

12,544,228J5,398,672,969 938,253 1,552,637,818 13,482,481 6,951,310,787

This schedule does not include Government checks shown in Schedule 32.

SCHEDULE 32.—Number of checks drawn on Treasurer of Untied States handled
by Federal Reserve Bank of Boston.

Month.

Number
of
pension
checks.

Amount.

January
February..
March
April
May
June
July
August
September.
October
November.
December.

10,230
2,481
28,622
8,832
1,688
30,311
7,530
1,847
29,520
8,729
1,472
28,802

$517,519.99
110,476. 60
1,797,566.15
486,012.72
96,131.97
1,841,444.80
482,184.15
105,168.96
1,843,009.61
1,917,507.76
94,245.13
2,055,398.14

Total

159,564

Number
of
other
checks.

11,346,665.98

SCHEDULE 33.—Gold settlement

Reserve Bank.

New York
Philadelphia..,
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y . . .
Dallas
San Francisco.
Total
Gain through settlement
Net loss through transfers
Net gain through transfers and settlement




15,390
14,853
22,466
17,571
22,666
23,051
29,299
37,807
40,944
45,475
51,714
53,200

Total
number
of
checks.

Amount.

$3,400. 482. 59
2,357! 041.29
2,152, 905.35
3,400; 458. ti2
3,681, 789.75
8,280. 477.69
21,143] 385.80
23,762, 400.72
29,400. 409.58
37,614' 297.03
49,737!.209.52
49,926: 034.73

374,436 234,856,892.67

Amount.

S3,918 002.58
2,467! 517.89
3,950: 471.50
3,886: 471.34
3,777: 921.72
10,121:922.49
21,625: 569.95
23,867: 569.68
31,243: 419.19
39,53i: 804.79
49,831: 454.65
51,981;432.87
534,000 246,203,558.65
25,620
17,334
51,088
25,903
24,354
53,362
36,829
39,654
70,464
54,204
53,186
82,002

fund operations, Jan. 1, 1017, to Dec. 31, 1917.
Amount
received in
settlement of
accounts due
from other
Federal Reserve Banks.

Amount
paid in
settlement of
accounts due
to other
Federal Reserve Banks.

$1,282,707,000
254,752,000
74,426,000
40,147,000
17,834,000
132,500,000
41,699,000
41,871,000
22,856,000
12,340,000
13,988,000

$1,091,785,000
218,375,000
88,571,000
32,286,000
22,961.000
190,376,000
67,800,000
28,471,000
14,338,000
19,142,000
20,299,000

1,935,120,000

1,794,404,000

Gain
through
weekly
settlements.

Loss
through
weekly
settlements.

$190,922,000
36,377,000
$14,145,000
7,861,000
13,400,000
8,518,000

5,127,000
57,876,000
26,101,000
6,802,000
6,311,000

257,078,000
140,716,000
4,999,000

116,362,000

"i35,*7i7,*666

251

DISTRICT NO. 1—BOSTON.

SCHEDULE 84.—Maturities of invested funds (not including United States bonds
or notes).
Within 15 (lays. 16 to 30 days. 31 to 60 days. 61 to 90 days.

Month.
January
February
March
April
May
June
July.
August
September..
October
November..
December...

$3,384,387.59
4,240,441.40
6,339,579.02
6, 868,449.75
5,782,614.46
13,485,534.92
8,691, 895. 29
13,189,169.97
8,019,481.18
8,624,946.44
11,541,062.63
14,028,234.18

$3,145, 572.37
2,803, 991.97
4,604, 292,08
2,305, 541. 71
1,079,697.43
3,630, 761. 89
4,545, 135.67
9,254, 373. 34
5,288,955. 73
3,497, 694.46
14,128, 035.97
9;007; 576.15

$5,127, 604. 97
5,200,900.14
4,722,577.25
2,971 451.44
3,436,545.90
8,075. 533.98
12,109; 702.11
8,684, 667. 30
11,211, 333.40
16,287, 214.73
10,957. 876.70
9, 576^917.94

Over 90
days.

Total.

$3,253,854.30 $5,900. 00 $14,917,319.23
3,956,657.32 126,977.75 16,328,968.58
1,945,646.21
17,612,094.56
815,956.80
12,961,399.70
5,304,956.00
15, 603,813. 79
35,183,627.27
9,991,796.48
5,090,152.89
100.00 30,436,985.96
37,864,291.73
6,736,081.12
13,359,830.75
"386.25 37,879,987.31
34,918,852.69
6,508,997.06
71,110,155.82
34,483,180.52
74,271,501.87
41,658,773.60

SCHEDULE 35.—Distribution, by maturities, of tills rediscount ed for member
banks, Jan. 1, 1017, to Dec. 31, 1917.
Month.
January
February
March
April
May
June
July
August
September...
October
November...
December

1 to 15 days.

16 to 30 days. 31 to 60 days. 60 to 90 days. Over 90 days.

$122,928.67
$126,008.50
$847,389. 05
$102,135.52
332,388. 08
702,647.25
1, 882,783.36
1,015,169. 53
409,488.76
574,161. 56
3,816,627. 87
298,484.96
196,113. 46
454,770. 63
9,118,269.32
180,268.91
934,332.06
445,623. 09
9,493,344.80
428,929. 21
3,365,573.33
34,571,777.01 6,196, 820. 77 2,082,554.17
1,583,856. 80 3,012,316. 60
35,073,960.03 2,760,025.49
16,902,573.21 2,179,412. 22 2,936,784.55 4,358,337.48
21,307,151.47
1,105,028.91 1,567,284.14 1,768,743.98
6,770, 804.48
770,203.90 1,274,928.51 2,389,172.12
4,086,615.21 32,169,170.13
14,243,720.77 9,918,880.69
20,137,601.91 14,922,952.50 25,837,504. 02 44,947, 757. 06

T o t a l . . . 174,166,003.28

39,878,292.61

41,672,738.43

94,006,321,73

Total.

$1,198,461.74
3,932,988.22
5,098,763.15
9,949,422. 32
$200. 00 11,302,429.16
46,216,725.28
325. 00 42,430,483.92
26,377,107.46
262,077.15 26,010,285.65
580,860. 00 11,785,969.01
119,432.71 60,537,799.51
233,060.01 106,078, 875. 50
1,195,954. 87 350,919,310.92

SCHEDULE 36.—Classification by maturities of investments (exclusive of United
States securities) at close of business Dec. 31, 1917.
15 days.

30 days.

60 days.

90 days.

Over
90 days.

Total.

J,
Bills discounted, members. $3,321,793. 09 m, 527,991. 3916
3,603,533. 8512!, 864,811.50 $9,116.25 $19. 327,246.08
Trade acceptances dis816,660.94
counted
358,906.25 1,337,449.03!
287,536.22
,800,552.44
Member banks' collateral
notes
7,349,338.00
,349,338.00
Rediscounts secured by
Liberty loan bonds
151,257.17 493,425.12 3,643,823.77 32,116,718.77
,405,222.83
Foreign bankers' accept88,302.
369,734.40 1,999,559.41
ances
100,000.00
,557,596.50
Domestic bankers' accept33,207.10 503,609.00 828,178.
ances
,
4,438,522.28 72,500.00
,876,017.36
346,875.40 257,016.78
603,892.18
Foreign trade acceptances,
Total

34305°




11,590,006.98 8,687,005.9211,804,177.25 42,757,058.99 81,616.25 74,919,865.39

DISTRICT NO. 2—NEW YORK.
PIEREE JAY, Chairman and Federal Reserve Agent.

RESULTS or OPERATION.
BALANCE SHEET.

The following is a statement comparing the condition of the Federal Reserve Bank of New York on December 31, 1917, with that of
December 30, 1916, and showing the increase and decrease in the
various items of resources and liabilities:
Dec. 31, 1917.

Dec. 31, 1916.

$225. 117,913.30
i4s; 770,185.44
191,033.66
168, 599.64
4, 493, 000. 00
15, 000, 000. 00
510,701.32

$7,071,158.55
41,457,184.04

RESOURCES.

Loans and discounts:
Bills discounted for member banks
Acceptances purchased
Rediscounts for other Federal Reserve Banks
United States bonds
United States 1 year Treasury notes
United States certificates of indebtedness
Municipal warrants
Total investments

" l , 042,'550. 00
1,205, 000. 00
972,311.62

424,251,433.36

Reserve cash:
Gold with Federal Reserve agent 1
Gold redemption fund for Federal Reserve notes.
Gold settlement fund
Gold bullion
Gold coin and certificates
Legal tender notes
Silver certificates and coin
Total reserves

51,748,204.21

250,598,565.00
10,000.000.00
5,854,000. 00
68,113, 616. 99

107,003,765.00
250,000.00
20,570,000.00

275,130,455.00 159,321,257.50
31,322,275.00
11,188, 200.00
8,925, 743. 85
4,077,274. 80
! 649,944,655.84 I 302,410,497.30

Other resources:
Federal reserve notes and other cash.
Items in process of collection.
Exchangesforclearing house and sundry cash items
Interest accrued on United States bonds
Cost of unissued Federal Reserve notes.
Deferred charges and prepaid expenses
Advances made for Treasury, United States, account expenses Liberty loan and war savings committees
Total other resources

752,685.24
091,790.20
429,660. 74
73,620.28
20,458.22
360,350.01

134,728,564.69

Total resources

1,208,924,653.

Capital fund:
Capital paid in.
Surplus!
Profit and loss .

13,865,897.46
23,077,418.64
2,503,168.21
12,501.88
235', 598.86
8,753.52

39,703,338.57
393,862,040.08

18,695,950.00
649,363.56

11,865,750.00

19,345,313.56

12,028,813.9

163,063.'9*8

Total capital fund
1

Inserted in 1918 report for purposes of comparison.




253

254

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Dec. 31,1917.

Deposits:
Due to United States Government
Due to foreign Governments
Due to nonmember banks, deposit account
Due to member banks—reserve balances
Due to member banks—uncollected funds
Due to other Federal Reserve Banks—collected funds
Due to other Federal Reserve Banks—uncollected funds
Cashier's checks outstanding
Gross deposits..
Other liabilities:
Depreciation reserve
Unearned discount and interest
Participation certificates Liberty loan bonds.
Federal Reserve notes outstanding1
Total other liabilities..
Total liabilities

Dec. 31, 1916.

$11,870.767.74
3,335,930.00
10,317,630.16
652, 791,808.26
35,553,478.43
7,610,609.86
156.779.75
821,683.09

$3,571,391.94
237,907.354.87
18,552; 984.84
12,373,721.91
2,085,975.49
188,275.81

731,458,687.29

274,679,704.86

205,880.00
1,348,238.04
227,970.00
456,338,565.00

*iO7,* 003* 765.66

149,756.24

458,120,653.04

107,153,521.24

.1,208,924,653.89

393,862,040.08

The great increase in many of the items of resources and liabilities
may be traced quite directly to the changed conditions created by the
amendments to the Federal Reserve Act approved June 21, 1917.
These amendments greatly increased the balances of the member
banks, placed on the balance sheet the entire note liability and the
gold and lawful money held by the Federal Reserve agent, permitted
nonmember banks to open clearing accounts, and b}^ establishing in
the statute the rights and duties of State institutions as member
banks prepared the way for the membership of a large number of
these institutions. The remaining changes are largely due to the
activities of this bank in rendering assistance to the Government
and to its members in the financial operations entailed by the war.
The changes in the balance sheet will later be commented upon in
detail under the appropriate headings.
INCOME AND EXPENSE.

The following statement shows the income and expense of the bank
for the years 1916 and 1917:
1917

1916

INCOME.

Bills discounted for members
Acceptances bought
A*
United States securities
Municipal warrants
,
Profit realized on United States bonds...
Commissions received
,
Profit on bills sold
Penalties for deficient reserves
Service charges
,
Sundry profits
Total




$2,455,532.87
1,843,324.87
378,668.40
66,470.41
14,335.50
38,537.54
8,077.03
18,565.29
80,922.53
24,779.51

$37,368.26
530,483.75
81,644.49
214,122.13
43,515.01
42,387.09

4,929,213.95

983,609. 22

32,959.90
1,128.59

DISTKICT NO. 2

255

NEW YORK.
1917

.

1916

EXPENSE.

Directors' fees, outside conferences, and Federal Advisory Council
Salaries
Rent
General expenses
...
Cost of Federal Reserve notes used
Assessment for expenses of Federal Reserve Board

$10,768.34
215,307.51
45,810.04
151,200.36
95,240.00
39,029.38

1,195,249.28

557,352.12

3, 733, 964.67

Total
Net earnings
Profit and loss balance, Dec. 30,1916
Net debits during year

$18,301.61
398 282.81
55,550. 91
329,096. 98
343 764.88
50,252.09

426.257.10

$163 063.
4 355. ?1
158,708.77
3,892,673.44

Deductions, Dec. 31,1917:
Cost of unissued Federal Reserve notes charged oil
Depreciation reserve account set up

...

Dividends paid during 1917:
To liquidated banks
Apr. 1, 1915, to Dec. 31, 1915, paid June 30,1917
Jan. 1,1916, to Dec. 31,1917, paid Dec. 31,1917

1 176.
474, 776. 12
. . 1,466,865. 51

445,248. 14
205,880. 00
651.128.14

Paid to Treasurer of United States as franchise tax, Dec. 31, 1917
Carried to surplus
Total.. .

1.942,818.17
649,363.57
649,363.56
3 892 673.44

The great expansion which has occurred in the business of the
bank during 1917 is reflected not only in the increased earnings but
also in the increased expenses for salaries, rent, and printing Federal
Ileserve notes, which will be referred to in more detail later. The
item " General expenses " includes cost of furniture and equipment,
stationery and printing, telephone, telegraph, postage, expressage,
insurance, as well as the entire expense of operation of the transit
department, including expenditures of the kind just mentioned, salaries -and rent. At the close of the year, after allowing for all current expenses, and paying dividends to date as above indicated,
charging off all assets of a nonliquidating character and setting aside
a reserve for depreciation on United States 3 per cent conversion
bonds and for certain obligations under the lease of the banking
office, the Federal Eeserve Bank, under the provisions of section 7 of
the Federal Eeserve Act, paid into the Treasury of the United States
as a franchise tax $649,363.57, being 50 per cent of the net earnings to
date, and carried a like amount to surplus fund.




256

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
DISCOUNT KATES.

The discount rates established by the Federal Reserve Bank of
New York during the year, and the rates at which acceptances were
purchased in the open market have been as follows:

Month.

January
February..,..
March
April
May
June
July
August
September
October
November
December 1-20..
December 21-31

(Special.)
Secured
by.
Liberty
15 days
Agricul- bonds or
or less 16 to 90 tHral
United
(includ- days, in- paper
States
ing
91 days certifito 6
collateral clusive.
cates of
loans).
months. indebtedness
within
16-90
days.

•Open-market
purchases, bankers'
acceptances.

(Special.)
1-day
collateral
notes in Trade
connec- accepttion with ances.
GovernAuthor- Actual
ment
ized rates.1 rates.
financing.

Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
5
2 -4
3
4
5
2 -4
3
4
5
2 -4
3
4
5
2J-4
3
4
5
3
4
31
3 -4
5
2-4
3
4
i|-4
3 -4
5
2-4
3
4
24-4 .
3 -4
5
3
4
2-4
24-4
3 -4
5
3
4
2-4
24-4
3-—4
5
3
4
2-4
2.V-4
of-4
5
3
4
2-4
2|-4
5
3
4
1 2
34
4-1
3-4J
3 -44 i

U

l

m

3H1

1

Acceptance rates advanced Dec. 7.

To assist the Government financing, a special rate of 8-J- per cent
was established on May 22 for discounts maturing within 90 days
secured by United States certificates of indebtedness or Liberty bonds.
On June 13 a special rate of 2 per cent to 4 per cent was established
for advances on member banks' one-day collateral notes secured by
eligible commercial paper or United States Government obligations
In connection with Government financing, and loans were made between June 5 and June 12 at the rate of 2-| per cent. Subsequently,
loans of this character were made at the prevailing rate for maturities
within 15 days.
During the early part of the year the bank's 90-day discount rate
continued, as in preceding years, to be above the open-market rate for
commercial paper. Since the declaration of war, however, It has
been substantially below the open-market rate for such paper. Th©
change In the relative position of the two rates, however, led to no
marked Increase in the discounting of this class of paper. Substantially all of the rates of the bank were increased about one-half of 1
per cent shortly after December 15, when the period of Government
financing relating to the second Liberty loan had been completed, in
order to bring the rates of the bank on commercial paper more nearly
In line with the rates prevailing in the open market, and in order
to stimulate liquidation of its discounts in anticipation of future



257

DISTRICT NO, 2—NEW YORK.

demands upon its credit facilities which will arise during succeeding
periods of Government financing.
INVESTMENTS OF THE FEDERAL RESERVE B A N K or
DURING

NEW

YORK

1917.

MATURITIES OF INVESTMENTS AND LOANS.

The following statement shows the maturities of investments, other
than United States securities and warrants, held by the Federal
Reserve Bank of New York December 31, 1917:
Discounts or ad- Discounts or advances based on vances based on Bankers' acceptcommercial
ances.
United States
paper.
securities.

Total.

$55,972,882. 45
7,261,070.62
32,153,380. 52
16,327,611. 46

Total

$81, 494,809. 69
1,028,580.10
51,977,627.14
4,093,924. 98

$17,172,201.88
22,354,778.42
82,644,978. 39
26,598,226.75

$154,639,894.02
30,644,429.14
166,775,988.05
47,019,763.19

111,714,945.05

Within 15 days
16 to 30 days
31 to 60 days
61 to 90 days

138,594,941.91.

148,770,185.44

399,080,0/2.40

MEMBER BANK DISCOUNTS AND ADVANCES.

The early months of 1917 showed the usual small volume of advances and discounts for member banks, but, as the Government
financing, which commenced shortly after our entrance into the war,
began to assume important proportions, the discount facilities of
the Federal Reserve Bank were availed of generally, and as the time
for payments due June 15 on the first Liberty loan approached there
was a rapid increase in the volume of acceptances purchased in the
open market and discounts for member banks. The discounts for
member banks, which amounted to less than $1,000,000 on June 1,
had increased on June 19 to $168,000,000, while acceptances increased
between the same dates from $86,000,000 to $89,000,000 and rose on
June 27 to $1O35OOO?OOO. Total investments rose from $66,000,000 on
June 1 to $279,000,000 on June 19. The contraction was only slightly
less abrupt than the expansion, for by August 15 the total investments
of the bank had fallen to $68,000,000. "This sudden expansion of
$213,000,000 in 19 days, which exceeded by $104,000,000 the largest
amount of clearing-house certificates ever outstanding among the
New York Clearing House banks, was due to two causes, which were
also operative during the period of Government financing incident
to the second issue of Liberty bonds.
First, the withdrawal by interior banks of deposits kept with New
York institutions in order to make payment in their respective Fed


258

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

eral Reserve districts for United States certificates of indebtedness
and for Liberty bonds purchased by such banks or through them.
Interior banks usually make these payments by drafts on New York
banks, which are sent to the Federal Reserve Bank of New York for
collection through the clearing house and for settlement through the
gold settlement fund. By this method the reserves of the New York
banks are depleted and gold is transferred to the interior. To maintain their reserves the New York banks are obliged to come to the
Federal Reserve Bank for discounts or advances. Usually these have
been required only for short periods, running from a few days to a
few weeks, because the funds gradually find their way back to New
York, also through the gold settlement fund, as the United States
Government makes most of its advances to the allied Governments
and pays a large proportion of its own expenditures through the
Federal Reserve Bank of New York.
Second, the requirement for the creation of an immense volume of
bank credit represented by short-term certificates of indebtedness,
which the Government issues to provide itself with funds in anticipation of the sale of bonds. The total volume of these certificates
outstanding in connection with the period of financing which ended
with the first Liberty loan was $868,205,000, of which this Federal
Reserve district took $479,962,000, or 53 per cent. When these credits
are created by the banks, the law does not require any reserves to be
maintained against them, but, as they are gradually drawn into the
Federal Reserve Bank and disbursed by the Government, they are
transformed from Government deposits, free of reserves, into individual deposits, requiring reserves, and, therefore, requiring
larger balances to be kept with, the Federal Reserve Bank. As the
allied Governments, to whom the bulk of the funds has thus far been
distributed, make payments to interior points the banks have to discount with the Federal Reserve Bank to maintain their reserves.
When these funds reach interior banks, balances withdrawn from
New York for the payment of Liberty bonds are gradually built up
again and the New York banks relieved of their strain.
Each sale of bonds is, therefore, the culmination of a period of
Government financing which begins with tremendous expansion of
bank credit in favor of the Government and ends with wThat is in
effect,- though not literally, a conversion of these short-time bank
credits into long-time investment credits, namely Liberty bonds.
This conversion enables the banks to contract their position somewhat and, by canceling the credits they have obtained at the Federal
Reserve Bank, thereby contract the position of the Federal Reserve
Bank as well and prepare it for another similar period of financing.
During the period of financing ending with the payments for the
second Liberty loan, the total amount of United States short-term




DISTRICT1 ETO. 2—NEW YOKK.

259

certificates of indebtedness issued throughout the country was
$2,925,296,000 (including $690,000,000 due June 25, 1918, issued in
anticipation of tax payments then due) of which the banks in this
Federal Eeserve district purchased $1,961,613,500, or 67 per cent.
The increased volume of the temporary financing in this period,
compared with that of the. preceding period, involved larger movements of funds to and from the interior, larger fluctuations in bank
reserves and considerably larger recourse to the credit power of the
Federal Eeserve Bank. The first issue of certificates in connection
with this period WTIS on August 9. On this date the total loans and
investments of the bank were $78,000,000. On November 30, 15 days
after the first payment for the Liberty loan bonds, they had grown
to $522,000,000, an increase during this period of financing of $444.000,000. On one day, November 30, the increase was $111,000,000.
On December 15, the maturity date of the last issue of certificates of
indebtedness, the decrease in loans and investments was $219,000,000,
indicating in a very striking way the effect of the Government certificates of indebtedness upon the discount activities of the Federal
Eeserve Bank.
The chart on the following page shows graphically the closeness of
the relation between the Government's short-time financing on certificates of indebtedness and the expansion of the loans and investments of the Federal Eeserve Bank of New York.




January

March

April

May

July

flugusr

Ocfoher

IZI
THE SOLiD LINE SHOWS THE TOTAL LOANS, DISCOUNTS ANO
INVESTMENTS OV THE FEDERAL RESERVE BANK OF NEW YORK
DURING 1^)7
THE DOTTED LiME SHOWS THE AMOUNTS OF U. S. CERTIFICATES
OF tf-!DE':BTEi)Mf:S3 PURCHASED AND OUTSTANDING" IN THE SECOND
FEDERAL RESERVE: DISTRICT DURSNO J917




\wuxapw

P
H
O

o

p

Fiaaacmg period of the first Liberty Loan

Financingperiod'of'tne second Liberty Losn

261

DISTRICT NO. 2—NEW YORK.

The following is a statement of discounts for and advances to
member banks, by months, during 1917, together with similar transactions during 1916:
1917

Month.

Number
of items.

January
February..
March..!...
April
May
June
July
August
September.
October
November.
December..

148
171
237
267
523
2,034
1,346
1,254
1,625
2;544
3,213
9,122

Total

22,484

Amount.
$598, 162.06
1,925, 351.05
3,062, 583.13
2,439, 223. 25
6, 545, 273.25
552,976, 458.11
262,366, 105. 28
53,024, 394. 91
319,543, 993. 34
2,382,893, 110. 97
2,663,667, 291. 90
262,232, 974.93
6,511,274,921.4

1916

Number
of items.

Amount.

117
73
249
149
307
325
116
241
105
177
79
567

$125,655. 65
98,304. 35
304,638. 35
149,950.15
191,290. 38
348,405. 34
235,494. 37
586,851. 00
560,583. 29
1,035' 118. 65
715| 293. 90
17,977,996. 38

2,505

22,329, 581. 81

The immense volume of discounts and advances made during
October and November, 1917, are due to the fact that many of the
banks which borrowed most heavily did their borrowing for periods
of from one to five days only, in order to readjust the amounts at
each renewal to the requirements of their condition. In this way
their borrowing became almost as flexible as if their loans had been
on demand.
The following figures show certain data concerning the discounts
of 1916 and 1917:
1916
Number of apnlionlions received
A:>i nr,it of applicuu JIIS r,*:vi\ e'l.
Amount of applications aeropi^d end disoount^d or advanced upon.
> p
Number of piojofj oi'p^por (Us <,auied or advanced u p o n .
J v^id piece cf paper d'scoi'i-!,nd or advanced tip. n.'
£m iMfst piece ci paper d i s ^ i oJcd c au\ an xd upon
A vvru^e L'L,-> of a 4es cliso niiii.sd or ad\ nn xd up ,u
IS amber of baiL.s rodio^ountii-g
T

BANKEES 7 ACCEPTANCES AND THE DISCOUNT MARKET.

This year has witnessed a continued increase in the volume of
bankers' acceptances created and a steadily broadening open market
in which they circulate. At the close of the year 1916 it was stated
that there were outstanding about $250,000,000 of dollar acceptances, including bills of foreign origin on American merchants. It
is not improbable that the volume of such paper in the United States
at the close of 1917 is from four to five hundred million dollars.



262

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The increases, while general in all classes of bills eligible for discount with Federal Reserve Banks, are most notable in the bills arising from domestic transactions and from the increasing trade between the United States and the Orient.
The following table, gathered from reports made to public officers, shows the amount of acceptance liabilities of national banks in
district No. 2, and of State banks and trust companies in the State
of New York:
September,
1917.
National banks
Trust companies
State "banks.Total

,

September,
1916.

$73,717,000
91,424,509
7,355,910

$44,300,877
68,588,558
2,787,995

172,497,419

115,677,430

The more general recourse during the year to bankers' credits for
financing the large seasonal movements in commodities is an indication of a wider understanding and appreciation, by the borrower and
banker alike, of the advantages of this form of financing transactions
that in themselves furnish the means of discharging the obligations
incurred by the taker of credit and the acceptor.
With the increased volume of business, the number of accepting
banks and purchasers of bills also has steadily increased. The names
of many well-known institutions located in the larger cities of the
country have now become known as acceptors through their acceptances offered in the open market in New York. Also, dealers report
an increasing interest on the part of out-of-town banks as investors
in prime bills, evidenced both in the number of new buyers and the
volume of their purchases. Indicative of the increase are the reports
of two houses whose sales this year have in each case exceeded $300,000,000 and neither of which handled over $80,000,000 of bankers'
bills last year. The larger number of dealers and bill brokers specializing in bankers5 acceptances is another indication of the widening
interest in the development of the open market.
The New York open-market discount rates during the year have
advanced gradually until they were at the close about 1 per cent
higher that at the end of last year. They have, nevertheless, been
the most stable of all the money rates during the period. The purchases
of the Federal Reserve Bank of New York have materially assisted in
this stabilization, especially at times when, owing to the temporary
requirements of the banks in this district and elsewhere, bills were
offered in large volume for resale in the market or directly to the
Federal Reserve Bank, and also when, during periods of adjustment
incident to the large financial operations of the Government, the



DISTRICT NO. 2—NEW YORK.

263

market's absorption of newly accepted bills was more or less interrupted. On the whole, however, purchases by the Federal Eeserve
Banks have been at rates determined by the law of supply and
demand in the open market.
By reference to the table showing the monthly purchases of acceptances by this bank for itself and other Federal Eeserve Banks,
it will be seen that during March and April, when the open-market
rates fell below those at which this bank was willing to purchase,
practically the entire volume of acceptances was taken by the open
market, and as a result the bill holdings of this bank decreased from
$39,000,000 on January 2 to $15,000,000 on April 18. When the
rates for money stiffened in June, incident to the transfers between
New York and interior points, the market rates rose above those
of the Federal Eeserve Bank and bills were taken in large volume
by this bank, whose holdings of bills increased $66,000,000 during
June. During the period of easy money, which began shortly after July
1, market rates again fell below those of the Federal Eeserve Bank
and liquidation of its bills again occurred. The situation was reversed
again as the demand for money increased and the time for payment
on the second Liberty loan approached. By selling a large volume
of its bills early in November to other Federal Eeserve Banks which,
had not been drawn on so heavily by their members, this bank was
placed in a position to maintain fairly stable rates for the purchase
of bills during the strained period between November 15 and December 15, on -which latter date its holdings of bills aggregated
$115,000,000.
The somewhat higher rates that have obtained during the year, and
the resulting wider demand have tended to diminish the distinction
that has existed in the open market between the rates at which the
acceptances of member banks and other well-known acceptors, private bankers, and others, were sold. This tendency to equalize the
open-market discount rates for equally prime bills, makes for greater
stability and freer use of dollar bills of exchange in foreign markets,
where the fine grades of distinction existing here were not understood. The Federal Eeserve Bank has assisted in this equalization
by its forward quotations for and purchase of prime bills to arrive
from the foreign countries of origin, as well as by its recognition of
the indorsements of both foreign banks and domestic banks and
bankers.
In its purchases the Federal Eeserve Bank has, by differential
rates, emphasized its preference for indorsed paper and the shorter
maturities; that is, for paper that has been sold in the market and
is re-offered indorsed by the original and subsequent purchasers and
is approaching maturity. This ordinarily enables a bank that carries



264

ANNUAL BEPOBT OF THE FEDERAL RESERVE BOARD.

a secondary reserve line of bankers' acceptances to make an additional profit or higher average yield on bills carried by purchasing
the longer bills at higher rates, and when they come, say, to within
30 days of maturity, indorsing and selling them to the Federal
Reserve Bank at the minimum rates obtaining for short-time paper,
and reinvesting the proceeds in new long bills.
A large proportion of the bills now bought by the Federal Eeserve
Bank bear one or more banking indorsements. This development in
the practice of the market in New York, which has occurred within
the year, is in accordance with the long-established practice in the
open markets of Europe and constitutes one of the most significant
evidences of the appreciation by our banks and bankers of what will
be the logical development of a larger open market in this country
and of the normal functions of a Federal Eeserve Bank as a bank
of rediscount rather than one of original discount.
The monthly purchases of acceptances and indorsed trade bills by
this bank for itself and for other Federal Eeserve Banks have been
as follows:
For account of Federal Reserve Bank of New York.

For account of other Federal
Reserve Banks.

Number
of items.

Number
of items.

Month.

January
February..
March..:...
Ar>ril
...
May
June.......
July
August.....
September.
October
November.
December..

133
1,004
84
437
1,278
4.025
1^019
439
4,407
2,835
3,079
4.476
23.87'

Total
Classification:
Import and export
Domestic
Indorsed trade bills of foreign origin
Bills drawn to furnish dollar exchange..
Domestic trade acceptances
Total.

Amount.

Amount.

$2,605, 561.06
20,242, 314.18
1,763, 414.47
9,687, 414.49
28,839, 604.60
83,248. 507.98
25,012, 533.62
12,512, 824.39
62,434 840.29
50,307 095.52
61,395'. 915.90
100,915, 574.17

396
1,311
230
591
1,459
1,947
1,991
1,672
356
523
314
105

$7,465, 453.54
21,619, 722.70
4,727, 936.26
11,617, 300.68
21,526, 022.56
24,474, 515.37
21,921, 403.75
19,553, 401.32
5,628, 313.38
6,524, 838.02
7,267, 178.15
593, 045.18

404,965,600.07 |

10,895

152,919,830. 91

387.550,190.57
69', 323,528.03
5,755,352.44
1,971.529.03
365', 000.00

111,757,370.47
8,370,500.56
2,452,116.94
340,786.94

461,965,000.67

152,019,830.91

TRADE ACCEPTANCES.

Reports from different parts of the country indicate a rapid increase during the year in the use of trade acceptances and, in view
of the widespread interest in this subject, this bank has published
and distributed to all banks in this district a pamphlet giving Information concerning the advantages to be derived from the substitution of trade acceptances for open book accounts. The great




DISTRICT KO. 2

NEW YORK.

265

demand for the pamphlet evidences the consideration now being
given by the business interests to the adoption of this system.
The Trade Acceptance Council has been organized, composed of
representatives from the United States Chamber of Commerce, the
American Bankers Association, and the National Association of
Credit Men, which plans to inaugurate a campaign of education on
the use of trade acceptances. The council has the full support of
the Federal Eeserve Bank in this work.
UNITED STATES BOND OPERATIONS.

Following advice from the Federal Eeserve Board that it would
require the Federal Eeserve Banks to purchase on April 1, 1917,
United States bonds amounting to $15,000,000, or so much thereof
as might be offered for sale on or before March 21 by the Treasurer
of the United States, the Federal Eeserve Bank of New York purchased, during the first quarter of 1917, from member banks and in
the open market $2,560,000 of United States 2 per cent bonds bearing circulation privilege and has converted $3,552,500 (including
bonds held over from 1916) into $1,776,500 30 year 3 per cent
conversion bonds, and $1,776,000 one year 3 per cent gold notes of
the United States, neither of which has the circulation privilege. No
further purchases of the 2 per cent bonds have been made, as the
Federal Eeserve Board, on April 18, advised that in view of the
coming issue of United States bonds bearing interest at 3J per cent,
it would not require the Federal Seserve banks to purchase bonds
convertible into obligations bearing only 3 per cent. This was further confirmed by resolutions adopted by the Federal Eeserve Board
on June 21.
On March 31 the bank purchased from the Government $20,000,000
of 2 per cent certificates of indebtedness maturing June 30, 1917,
which were carried to maturity.
In connection with its work as fiscal agent in selling later issues
of certificates of indebtedness and the two issues of Liberty bonds,
referred to elsewhere in this report, the bank has from time to time
purchased from holders of such certificates varying amounts which
were either carried to maturity, or after a short interval, resold to
those from whom purchased. It has also on several occasions purchased direct from the Government certificates of indebtedness payable within a few days, bearing interest at 2 to 4 per cent, the purpose being to avoid constant withdrawals of Government funds on
deposit with depositary banks,, The bank purchased Liberty bonds
of the first issue amounting to $1,500,000 to be held and delivered to
holders of certificates which it issued in denominations
$10, five
of which could be converted into a $50 bond. Liberty bonds to imim


266

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

portant amounts were also purchased from subscribers to the first
issue who had defaulted in their payments. Details of the transactions in United States bonds will be found in the appendix.
MUNICIPAL WARRANTS.

Municipal warrants, which, during 1915 and 1916 were purchased
in substantial volume when the resources of the bank were not being
otherwise drawn upon, disappeared almost entirely from its investments during 1917. The following statement records the purchases
during the year.

Month.

For account of For account of
Federal Re- other Federal
serve Bank of
Reserve
New York.
Banks.
Amount.

January
February..
May
September.
Total..

Amount.

$2,700,000
2,425,000
50,000
1,000,000

$4,240,000
3,225,000
25,000

0,235,000

7,490,000

Average rate for year, 3.04.
FEDERAL RESERVE NOTE ISSUES AND T H E ACCUMULATION OF GOLD.

The policy of issuing Federal Reserve notes freely and of maintaining the interchangeability of Federal Reserve Bank deposits
and notes, which was described in the last two annual reports, has
been pursued consistently throughout the year.
The amendment to the Federal Reserve Act of June 21 provided,
among other things, that all Federal Reserve notes in actual circulation should be included by the bank among its liabilities, and that it
should include among its assets the gold held by the Federal Reserve
agent as security for such Federal Reserve notes. The gold delivered
to the Federal Reserve agent is thus treated as collateral to Federal
Reserve notes instead of, as formerly, a payment to reduce the bank's
liability, and the Federal Reserve Bank is made joint custodian of
the funds so held. Up to June 15 all outstanding Federal Reserve
notes of this bank were secured dollar for dollar by gold or gold
certificates. On that date, however, rapid increases in the bank's
loans and discounts made it desirable to make a partial substitution
of commercial paper for gold as security for the Federal Reserve
notes, thereby increasing the gold reserve of the bank, and $25,000,000
was thus substituted. On June 22 an additional $75,000,000 was substituted, and since that date, in accordance with the spirit of the
Digitized foramendment above referred to, the gold held by the Federal Reserve
FRASER


DISTBICT NO. 2—NEW YOBK.

267

agent has been maintained in substantially the same proportion to
the net liability on Federal Reserve notes as the proportion of gold
held by the bank has borne to its deposit liability.
The accumulation of gold throughout the year by the issue of
Federal Eeserve notes in exchange therefor has added materially to
the strength of the bank. To assist in this strengthening process the
Federal Eeserve Bank on August 10 invited the cooperation of all
the national banks, State banks, and trust companies in the district
and offered to pay the cost to such banks of forwarding to it gold
or gold certificates and to ship Federal Eeserve notes free of expense
to any such bank forwarding gold or gold certificates. Later it
also offered for a limited period to accept gold coin at its face value
without deduction for loss by abrasion.
The response to these offers has been extremely gratifying not only
in the amount of gold accumulated but in the splendid cooperation
given by banks in the district, member and nonmember alike. Member banks outside of New York City sent in, between August 10 and
December 31, gold and gold certificates amounting to $10,776,000.
Nonmember banks outside of New York City sent in gold and gold
certificates amounting to $9,312,000. The amounts of gold received
from the New York City banks were, of course, far larger. Many
of the nonmember banks in New York under authority of the amendment to the Federal Eeserve Act, which permitted accounts to be
opened for clearing purposes, deposited with the Federal Eeserve
Bank large amounts of gold or gold certificates which they had held
in their vaults.
Arrangements effected in the early autumn by which the Treasury
at Washington and the Subtreasury at New York were supplied with
Federal Eeserve notes to meet demands for new currency have also
assisted materially in the substitution of Federal Eeserve notes for
gold certificates in general circulation.
The amount of Federal Eeserve notes of this bank in actual circulation at the end of 1916 was $93,426,100. At the end of 1917 the
amount in actual circulation was $397,353,805. This large increase
does not represent wholly a substitution of Federal Eeserve notes for
gold. Owing to the increase in the gold supply of the bank from
other sources it is impossible to estimate at all accurately what part
of the total was so accumulated. It is evident, however, that a substantial volume of notes has been issued not covered by gold, which
therefore constitutes an expansion of our circulating medium.
This, of course, is both natural under the circumstances and in accordance with the letter and spirit of the Federal Eeserve Act, since
Federal Eeserve notes are, with the exception of gold, the principal
expanding and contracting element in our currency. The higher
prices for labor and materials and the greater velocity of business


34365°—18
18


268

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

and trade require larger amounts of currency to be carried as till
and pocket money. The same demand has manifested itself for silver
and other coins. The Federal Reserve Bank issues whatever notes
the banks of its district require for use of their customers, but the
expansion should be regarded as entirely healthy since no one is
compelled to receive Federal Reserve notes in payment of debts and
since they are redeemable in gold on demand.
The redemption of Federal Reserve notes unfit for circulation
since November, 1914, has amounted to $119,141,435. The cost of
printing the notes has again increased and is now on the basis of
$10.80 per thousand bills as against $10.58 last year. I t is interesting
to note that while the demand for notes during the latter part of
1916 was heaviest for the $5 denomination, it has since changed so
that the tens have been issued in largest amounts and the proportion
of twenties issued has distinctly increased. The demand for fifties
and hundreds is also heavier, and were notes of denominations of
$500, $1,000, $5,000, and $10,000 available, they would doubtless be
taken in important amounts by many banks in the larger cities of the
district which have need for currency of this size and are, at present,
obliged to hold gold certificates and pay them out when necessary.
COLLECTIONS AND CLEARINGS,
THE COLLECTION SYSTEM.

The check collection system described at length in the last annual
report has been continued in operation during the year, and the following table shows the various classes and amounts of items handled:
[000's omitted in columns headed "Amount."]
Items on
other
Federal
Reserve
banks.

Items on banks
in other Federal Items on banks
Reserve districts. in district No. 2.

Items on New
York Clearing
House banks.

United States
Treasury checks.

Month.

1917.
January
February..
March
April
May
June
July
August
September.
October
November..
December..
Total.

658
502
587
539
49'
416
530
579
509
548
558
460

$3,789
5,324
7,088
7,340
7,915
11,621
7,417
11,903
8,847
6,555
8,365
6,219

367,754
325,367
406,568
407,718
421,991
412,261
373,514
356,429
382,888
510,575
534,942
586, 907

$173,484 620,476
169,128 546,298
202,489 621,938
221,139 702,285
248,645 830,591
250,546 859,104
236,115 866,893
239,075 914,076
266,621 883,781
325,528 975,647
330,062 967,104
339,866 1,
065,090

$122,760
105,120
145,303
161,683
186,598
234,054
220,080
258, 670
216,268
299,880
894,848
913,376

114,978
81,733
94,961
96,874
123,702
163,170
132,153
129,921
94,548
132,314
122,932
145,124

$383,380
348,895
459,026
670,211
937,649
1,137,609
1,037,054
978,327
869,452
1,859,986
1,805,131
1,659,628

138,716
141,685
135,047
145,586
205,797
201,668
227,791
280,931
311,473
358,626
442,649
439, 220

$35,217
39,129
45,165
39,401
39,771
43,346
65,037
100,413
138,245
162,534
174,127
217,073

6,383 97,383 5,086,914 3,002,698 9,853,283|3,758,640 1,432,410 12,146,348J3,029,189 1,099,458




I

DISTRICT JSTO. 2—STEW YORK.

269

The collection system was extended on September 10, 1917, to
include the collection of notes, drafts, bills of exchange, and other
collection items. As the handling of items of this kind presents
problems quite different from those involved in handling checks, a
service charge of 10 cents per item is made, in addition to such collection charge as may be imposed by the collecting bank. In case
a collction item is returned unpaid, a charge of 10 cents is imposed to be paid to the bank presenting the item for payment. No
charge, however, has been made for the collection of coupons other
than the charge made by the collecting bank plus mail or express
charges. As far as possible, items are sent direct to their place of
payment, and, when payable outside of the district, the collecting
bank is permitted to make remittance either direct to the Federal
Eeserve Bank of New York in New York exchange, or, if more convenient, in available exchange, to any other near-by Federal Reserve
Bank for the credit of this bank.
During the early months of the year the number of banks which
agreed to remit to the Federal Reserve Bank of New York at par
for items drawn upon them included all but 90 out of the 1,049 banks
in the district, and, on April 1 this bank announced its readiness
to accept at par, subject to the usual per item charge, checks on
every bank in the district. Checks on those banks which did not
agree to remit at par were collected through express companies and
through local agencies established by the Federal Reserve Bank. A
number of banks on which items were at first collected in this manner have since agreed to remit at par, and it is hoped that in the
interest of the development of the par collection system, the remainder will also in time adopt the same course.
On May 31, this bank announced the completion of arrangements
with other Federal Reserve Banks for the issuance and sale by member banks of drafts available for immediate credit at any of the 12
Federal Reserve Banks. Under this arrangement, any member bank
may draw its draft on its Federal Reserve Bank and have it made
available for immediate credit at par in any of the 12 Federal Reserve cities.
Under the regulations of the Federal Reserve Board, the Federal
Reserve Bank has throughout the year assessed penalties on member
banks which have failed to maintain their reserve deposits with the
Federal Reserve Bank at the amount required. The member banks
report monthly the average reserve required to be kept by them with
the Federal Reserve Bank and impairments of this reserve are ascertained by comparing the figures reported by the banks with the average actual reserve shown by the Federal Reserve Bank's books during
such month. The penalty, which the board has fixed at a rate of 2
per cent above the 90-day discount rate, has been at the rate of 6




270

ANNUAL KEPORT OF THE FEDERAL RESERVE BOARD.

per cent during the year. The amount collected was $18,565.29, and
the average number of banks penalized each month, 12.
GOLD SETTLEMENT FUND.

The operations of the gold settlement fund have become of even
greater importance than heretofore in connection with the broadened
activities of the Federal Reserve Banks since the entrance of the
United States into the war. The banks in other Federal Reserve districts have made payments on account of subscriptions to certificates
of indebtedness and Liberty loan bonds, to a very important extent
by drawing upon their New York correspondents. Payments by this
bank to other Federal Reserve Banks during the year through the
gold settlement fund totaled $8,692,024,000, and payments received
from other Federal Reserve Banks totaled $8,426,893,000, the net
amount paid being $265,131,000. Transfers in immense volume have
been made from other Federal Reserve Banks to this bank, both
as a natural movement of funds and also for account of the Treasurer of the United States. It seems probable that without the facilities of the gold settlement fund, these heavy transfers could have
been accomplished only at considerable expense and with an unfortunate disturbance of domestic exchange at times when it was of the
utmost importance that no disturbance should occur.
Through the courtesy of the Treasury and subtreasuries these
transfers have been made without the shipment of any gold or gold
certificates, and at a trifling cost for telegrams and clerical work.
The amendments of June 21 provided that the Treasurer of the
United States should receive deposits of gold from Federal Reserve
Banks or Federal Reserve agents for credit of their accounts with the
Federal Reserve Board. The gold settlement fund since June 29
has therefore been carried on the books of the Treasurer of the United
States as a deposit repayable in gold to the Federal Reserve Board,
which administers the fund.
THE TRANSFER SYSTEM.

Telegraphic transfers have been made for member banks without
limit as to amount and without charge other than the cost of the
telegram. That they have become an important part of the exchange
operations of the bank, is shown by the following table giving the
volume of transactions during the last six months:
Month.

Daily average
amount.

$31,801,000
July
28,536,000
August
September
30,893,000



Daily
average
number
of
transfers.

Daily

Month.

average
Daily average number
amount.
of

transfers.

October..,
November
December.

$37,304,000
47,191,000
50,308,000

48
73
70

DISTRICT NO. 2

271

NEW YORK.

DESIGNATION OF RESERVE CITIES.

Under the provisions of section 11 of the Federal Reserve Act, the
Federal Reserve Board has designated Buffalo, N. Y., as a reserve
city, effective January 1, 1918.
RELATIONS W I T H MEMBER BANKS.

In Federal Reserve District No. 2, including New York State, Fairfield County, Conn., and the following counties of New Jersey: Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Passaic, Somerset, Sussex, Union, and Warren, the number of member
banks on December 31, 1917, was 667, as compared with 625 on
December 31, 1916, the location of the members being as follows:
Number
of banks.

Location.

-L
Connecticut (Fairfield County)
New Jersey
New York, Borough of Manhattan
New York, elsewhere

15
134

56
462

518
Total

667

During the year 41 State banks and trust companies were admitted
to membership, making a total of 43 such members, the names of the
institutions and the amount of their gross resources at the time of
last available official statement being as follows:
Bank or trust company.

Location.

Bridgeport Trust Co

Connecticut: Bridgeport
New Jersey:
Montclair
Passaic
Plainfield
Rahway
New York:
Batavia
Brooklyn
Do
Do
Do
Buffalo
Do
Elmira
New York City
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do..
Do
Do
Bo
Do




Bank of Montclair..
Passaic Trust & Safe Deposit Co
Plainfield Trust Co
Rahway Trust Co
Bank of Genesee
Brooklyn Trust Co
Franklin Trust Co..
Manufacturers Trust Co
Peoples Trust Co
Buffalo Trust Co
Citizens Commercial Trust Co
Chemung Canal Trust Co
Bank of America
Bank of the Manhattan Co
Bankers Trust Co
Central Trust Co
Columbia Trust Co 1
Corn Exchange Bank
Equitable Trust Co
Fidelity Trust Co
German American Bank
Germania Bank
Grace & Co.'s Bank, W. R
•
Guaranty Trust Co
Irving Trust Co.*
Mercantile Trust & Deposit Co
Metropolitan Bank
1

Admitted to membership prior to Jan. 1,1916.

Resources*
$7,866,545.08
3,408,669.31
7,130,181.05
8,749,434.09
398,276.67
1,151,906.81
80,541,258.38
35,397,147.55
15,031,812.26
31,376,550.02
9,624,217.56
18,971,655.31
7,301,857.80
53,142,536.95
77,352,106.80
348, 716,132. 77
227,145,177.86
116,989,761.33
161,838,224.38
308,484,680.75
15,588,505.06
11,743,400.68
9,007,106.55
6,675.523.47
701,118,796.37
39,724,638.23
7,373,524.48
41,620,741.62

272

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Location.

New York—Continued.
New York City.
Do
Do
Do
Do
Do
Do
Ogdensburg.
Oneida
Rome
Syracuse
Utica
Do
Do
,
Watertown
Total

Bank or trust company.

Metropolitan Trust Co
New York Trust Co
Pacific Bank
Scandinavian Trust Co
Union Trust Co
United States Mortgage & Trust Co
United States Trust Co
St. Lawrence Trust Co.
Madison County Trust & Deposit Co
Rome Trust C o . .
City B a n k . .
Citizens Trust Co
Oneida County Trust Co
Utica Trust & Deposit Co
Northern New York Trust Co

Resources.

$72,199,002.79
84,935,886.36
16,866,754.73
16,944,327.51
86,701,578.94
96,068,096.07
77,455,086.50
929,679.49
2,224,325.64
3,627,405.80
8,239,911.66
10,641,931.22
2,428, 746. 94
11,850,975.96
7,151,603.95
2,851,735,682.75

The payments to capital stock of the Federal Eeserve Bank made by
these institutions amounted to $6,773,700; their reserve deposits on
December 31, 1917, were $241,680,500.43 and the amount of their
rediscounts and loans with the Federal Keserve Bank on that date
were $69,693,287.12.
Ten national banks in the district were liquidated during the year,
of which five went out of business for one reason or another and five
were converted into trust companies. Twelve new national banks
have commenced business in the district this year.
The relations with member banks during the year have been more
active, not only owing to the transactions which the Federal Eeserve
Bank has had with each member, as well as nonmember, bank in connection with subscriptions to Liberty bonds and with many of them
in connection with sales of certificates of indebtedness, but also owing
to the increasing number of member banks which have had occasion
to rediscount or obtain advances during the year, the total number
of such banks having been 322. With the New York City banks the
relations and cooperation have been particularly close.
New York City being the principal money market and the financial center of the country, it became apparent when the United
States entered the war that the banks of this city not only had a
duty to perform to the Government and to their own customers,
but had a responsibility to the whole country as well. They have
recognized and carried out these obligations in a spirit of wholehearted patriotism, and frequently at a sacrifice of normal banking
profits. By close cooperation among all the important banks of
the city, every requirement of the Government has been promptly
and fully met, and a generous amount of the resources of these banks
has been placed at the disposal of the Federal Reserve Bank for the
general stabilization of the money market. Had this spirit and this
recognition of responsibility been lacking among the New York City



DISTRICT NO. 2—NEW YORK.

273

bankers, the heavy financial burdens imposed upon the banking
system could not have been discharged without both inconvenience
and embarrassment to the Government and serious disturbance to
the money markets and the business of the country.
Joint meetings of the clearing house committee and the executive
committee of the directors of this bank have been held periodically,
and this bank has been appointed as settling agent by every member
of the New York Clearing House, including the Subtreasury of the
United States, thereby enabling all clearing-house balances to be
settled on the books of this bank, without the use of any currency
whatever in such settlements. This arrangement is of great value
to the Federal Eeserve Bank in preventing the drain on its gold
which would otherwise occur. The machinery of the Federal Reserve
Bank for the rapid creation of credit in hitherto unprecedented volume having been tested during both the first and the second Liberty
loan financing periods, there seems to be no longer any inclination
to doubt the practical value of the system; on the contrary, among
both the country and the city banks there seems to be a general recognition of the indispensability of the system to our banks in their conduct of the immense operations incident to the financing of the war.
RELATIONS W I T H NONMEMBER BANKS.

The relations with the State institutions, as indicated in the foregoing paragraph, have also become active through transactions with
many of them in certificates of indebtedness and with all of them in
Libert}^ bonds. The transactions of the bank acting as fiscal agent
of the Government have been on exactly the same basis with nonmember as with member banks, and no distinction has been made" between
the two classes in respect of the deposit of Government funds. Under
authority of the Federal Reserve Board, a Federal Reserve Bank
is authorized to accept from member banks paper discounted with
them by nonmember banks, provided it was given to purchase or
carry Liberty bonds or certificates of indebtedness, but only a very
small volume of such paper has been presented to this bank for discount. Nonmember banks have also cooperated cordially and effectively with the Federal Reserve Bank by turning in gold coin
and certificates in exchange for Federal Reserve notes.
The only note of discord in the relations with State institutions
has been that which manifested itself in the development of the
collection system. As already stated, a small number of State institutions are unwilling to remit at par to this bank for checks
drawn upon them, and this bank, much to its regret, has been obliged
to collect such checks at par either through express companies or
by the establishment of local collecting agencies.



274

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The amendment of June 21, 1917, permitted nonmembers to open
acounts for clearing purposes with the Federal Eeserve Bank and
enabled them to contribute their gold to the strength of the bank.
Balances thus carried with the Federal Reserve Bank at one time
aggregated $84,268,259.73, but the entrance into the system of the
larger institutions reduced the amount of such balances to $10,317,630.16 on December 31.
The entrance of the United States into the war has effected a great
change in the attitude of State banks and trust companies toward
membership in the Federal Reserve system. On August 1, the
Northern New York Trust Co. of Watertown, N. Y., and on September 28, 1917, the St. Lawrence Trust Co. of Ogdensburg, N. Y.,
became members, and following the entrance of the Guaranty Trust
Co. of New York City, which joined on October 4, the great majority
of the larger State institutions in New York City as well as a number from other places in the district have become members.
Several factors contributed to this important movement:
First, the amendment of June 21 under which the rights and duties
of State institutions as members of the system were prescribed by
law instead of being left to regulation by the Federal Reserve Board.
Second, the opinion of the Attorney General of the United States,
dated September 10, to the effect that State institutions joining the
system were not subject to the restrictions of section 8 of the Clayton Act.
Third, and by far the most important, the proclamation of the
President of October 13, appealing to State institutions to join the
system as a national duty.
Although the majority of the larger institutions have already
joined the system there are, nevertheless, approximately 260 State
banks and trust companies in the district with sufficient capital to
qualify them for membership. Many of them are actively considering applying for membership in the near future, and it is hoped
that before long the great majority of the State institutions will
join, thereby coordinating and concentrating the entire banking
power of the district and enabling every member bank in the district
to give the fullest cooperation and assistance to the Government
in financing the war.
The following extract from the report of the executive committee
of the United States Trust Co. of New York City to its board of
trustees is typical of the patriotic attitude which has led so many of
the larger institutions to join the system:
During this company's entire corporate existence we have steadfastly
adhered, in theory and in practice, to what we believed to be the fundamental
distinction between a trust company and a bank. This distinction has heretofore rendered direct membership in the admirable Federal Reserve system

neither necessary nor helpful to us. Our designated depositary banks have


DISTRICT NO. 2

NEW YORK.

275

fully represented ITS in that system, and our business being strictly confined
to that of a trust company as distinguished from the general banking business,
we have heretofore considered only our own interest in determining the question of membership in the system. The situation is now, however, radically
changed. The appeal of President Wilson and the urgent money needs of the
country make it the duty of every financial institution to come forward with
all the moral as well as financial aid which it can lawfully furnish. Whether
the facilities afforded by membership in the reserve bank are useful to us or
not, whether the conditions of membership would, having in ATiew the restricted
character of our business, in fact result in a slight pecuniary loss to us or not,
such considerations are in our opinion as of no weight whatever, in view of
the vital importance to our country under existing conditions of omitting no
act which can, either directly or morally, either by the furnishing of resources
or the exhibition of a spirit of hearty cooperation, tend to strengthen the
financial system of the Nation.

RELATIONS W I T H FOREIGN BANKS.

Under authority of paragraph (e) of section 14 of the act, and
with the approval of the Federal Reserve Board, the Federal Reserve
Bank of New York on May 3, 1917, concluded reciprocal arrangements with the Bank of England, appointing the latter its correspondent and agent. On June 20, 1917, the Federal Reserve Bank
under its agreement with the Bank of England made payments in
New York amounting to $52,500,000 against gold in like amount
earmarked and held in London by the Bank of England for the
account of the Federal Reserve Bank of New York. Pursuant to
arrangements with other Federal Reserve Banks and with the approval of the Federal Reserve Board, participations in this transaction were allotted to other Federal Reserve Banks to the amount of
$34,387,500.
On February 24 this bank applied to the Federal Reserve Board for
authority to appoint the Bank of France its correspondent and agent,
and approval was granted on February 26. Correspondence and arrangements of details are in progress looking to the completion of
the relationship contemplated.
On August 23, with the approval of the Federal Reserve Board, a
preliminary agreement was concluded between the Federal Reserve
Bank of New York and the Bank of Italy providing that each should
act as a correspondent of the other, which was confirmed by the board
of directors of this bank on September 5 and by the superior council
of the Bank of Italy on September 24.
Negotiations are in progress for the arrangement of reciprocal
relations with certain other foreign banks.
T H E FISCAL AGENCY OF THE UNITED STATES.

During the early part of 1917 the operations of this bank as fiscal
of the United States were limited as before to

Digitized agent and depositary
for FRASER


276

ANNUAL, REPORT OF THE FEDERAL RESERVE BOARD.

receiving from Government collectors of customs and internal revenue their various receipts and paying checks and Avarrants drawn
upon the Treasurer of the United States and coupons of United
States bonds.
Immediately following the entrance of the United States into the
wrar, however, the functions and responsibilities of the Federal Reserve Bank as fiscal agent of the United States were enlarged at the
request of the Secretary of the Treasury to include the following:
(a) The sale and redemption of certificates of indebtedness;
(b) The sale and delivery of Liberty bonds, the payment of coupons thereon, the exchange of bonds of small denomination for bonds
of large denomination, and vice versa, and the conversion of bonds of
one issue into bonds of another issue;
(c) The administration of deposits of the United States Government in depositary banks in this district resulting from sales of certificates and bonds, and the examination, approval, and custody of
the- securities pledged to secure such deposits;
(d) Later, the sale of war-savings stamps and thrift stamps.
At all times throughout the period in which the bank has performed these functions and undertaken these responsibilities as agent
of the Treasury Department its work has been lightened and its burdens made possible by the vigorous and cooperative way in which the
bank has been supported in the various requests and recommendations which it has made.
The method of conducting these operations will be described in the
succeeding paragraphs.
CERTIFICATES OF INDEBTEDNESS.

On March 27 the Secretary of the Treasury offered to Federal Eeserve Banks $50,000,000 certificates of indebtedness due June 30,
1917, at 2 per cent. This bank subscribed for $25,000,000 and was
allotted $20,000,000, the balance being taken by the other reserve
banks.
On April 19 the Secretary of the Treasury offered for subscription
through Federal Reserve Banks $200,000,000 of 3 per cent certificates
of indebtedness due June 30, 1917, for which subscriptions were received in this district aggregating $135,650,000, and a similar amount
allotted. This issue, like some of the later ones, was oversubscribed,
and $68,205,000 was issued beyond the original amount offered. In
subsequent issues allotments were restricted to the amount originally
offered. From the following table it will be seen that, out of a
total of $3,843,501,000 offered, the subscriptions received through this
bank amounted to 67 per cent and the amount allotted through this
bank amounted to 64 per cent of the total. The largest volume of



DISTRICT NO. 2

277

N E W YORK.

these certificates outstanding at any one time in this district during
the first Liberty loan financing period was $479,962,000, and during
the second Liberty loan financing period was $1,467,543,000. The
cooperation of the banks in this district, particularly of those in New
York City, in purchasing these certificates, was of a most gratifying
character. Individual bank subscriptions during the second Liberty
loan financing period ran as high as $145,000,000 and $150,000,000.
Of the 1,076 banks (not including savings banks) outside of New
York City, 308 purchased certificates of indebtedness, but of these
only about one-half were what might be termed regular purchasers.
The others participated in only one or two of the issues.
United States certificates of indebtedness issued during 1917.

Date of issue.

Maturitydate.

Per cent.
2 June 30,1917
3
do...—
3 July 17,1917
H July 30,1917
do..
3i
N o v . 15,1917
N o v . 30,1917
Dec. 15,1917
do
N o v . 22,1917
Dec. 15,1917
June 25,1918

Mar. 31..
Apr. 25..
May 10..
May 25..
June 8...
Aug. 9...
Aug. 28..
Sept. 17.
Sept. 26.
Oct. 18..
Oct. 24..
Nov. 30.
Total.
1

Rate of
interest.

Total amount
of issue.

Amount
subscribed
through Federal Reserve
Bank of
New York.

$50,000,000
268,205,000
200,000,000
200,000,000
200,000,000
300,000,000
250,000,000
300,000,000
400,000,000
300,000,000
685,296,000
690,000,000

$25,000,000
135,650,000
98,512,000
175,231,000
116,000,000
211,054,000
188,837,000
204,347,000
212,100,000
179,475,000
543,683,000
494,070,500

3,843,501,000

2,578,959,500

Amount
allotted
through Federal Reserve
Bank of
New York.

1

$20,000,000
135,650,000
98,512,000
125,300,000
100,500,000
175,000,000
152,938,000
204,347,000
212,100,000
179,475,000
543,683,000
494,070,500

2,441,575,500

Not offered for public subscription, but taken by Federal Reserve Bank of New York.

In order that payments for the large amounts of certificates of
indebtedness subscribed for in this district might not disturb the
banking situation, arrangements were made beginning with the issue
of April 25 to redeposit as large a portion as possible of the funds
paid in. This, in effect, amounted to a payment for the certificates
by credit on the books of the subscribing banks, and in later issues
this was the practice actually pursued. In this manner disturbance
to the money market from the absorption of this large volume of
certificates was reduced to a minimum. The Federal Reserve Bank
itself purchased from time to time various amounts of these certificates of indebtedness from banks and bankers, and on several occasions advanced substantial amounts to the Treasury for temporary
requirements through the purchase of special certificates running f or
a few days, not included in the totals above referred to.
The sale of certificates of indebtedness in anticipation of both
Liberty loans enabled the banks to create the short credit required by
the Government pending the creation of long-time credit through the



278

ANNUAL REPOBT OF THE FEDERAL RESERVE BOARD.

purchase of bonds by investors. With each issue of bonds the short
bank credits were, in effect, converted into long investment credits.
FIRST LIBERTY LOAN.

On May 3 the Secretary of the Treasury announced an issue of
$2,000,000,000 3£ per cent 15-30 year Liberty loan bonds exempt from
all taxes, except estate or inheritance taxes, imposed by authority
of the United States or its possessions or by any State or local taxing authorities.
In making the announcement the Secretary advised that the subscription books would close on June 15, and requested the Federal
Keserve Banks in each district to act as a central agency for receiving subscriptions, taking payment of subscriptions and delivering
the bonds after allotment. He also requested the Federal Reserve
Banks to form an effective organization and carry on an energetic
campaign for the successful flotation of the loan.
The governor of the Federal Reserve Bank of New York appointed a Liberty loan committee for the district, composed of 12
New York City bank presidents and private bankers, together with
an alternate for each. At the first meeting of this committee, on
May 7, the governor of the Federal Reserve Bank was appointed
chairman, the secretary of the bank was appointed secretary, and a
plan of organization was determined upon which involved the appointment of subcommittees on distribution, on publicity, and on
the receipt and payment of subscriptions. An executive manager
was also appointed. The committee met daily except on Saturdays
throughout the campaign, and on several occasions, at the request
of the Treasury Department, sent subcommittees or representatives
to Washington to confer upon some of the many details which were
required to be settled in connection with securing and receiving subscriptions and delivering the bonds.
The committee on distribution consisted of 12 members, and owing
to the active nature of the work assigned to this committee alternates
were also appointed. The chairman of the committee was a member
of the Liberty loan committee. All of the members were partners
of leading bond houses or officers of banks or corporations having
bond departments. This committee had charge of organizing the
campaign to obtain subscriptions to the loan throughout the entire
district, and met daily during the campaign.
The committee on publicity carried on a well-organized, vigorous,
and effective publicity campaign, reaching all parts of the district,
and included in its activities the organization of meetings, the creation of a speakers' bureau, which supplied speakers for over 1,000
meetings, the use of large quantities of newspaper and periodical



DISTRICT NO. 2—NEW YORK.

279

news and advertising space, largely contributed by advertisers,
and the distribution of posters and other literature. Most of the
staff of the publicity department were volunteers from banks, banking houses, and newspapers, and the cooperation of many and varied
interests was given ungrudgingly to further the efforts of the committee.
The committee on receipt and payment of subscriptions organized
a staff of about 300 men and women loaned by New York banks,
bond houses, and insurance companies to serve during the period of
the campaign and of the subscription payments. This force worked
tirelessly in handling the immense amount of detail incidental to
the receipt, allotment, and adjustment of subscriptions and the receipt
of payments. Some confusion was apparent at times, owing to lack
of opportunity for careful organization, to the fact that the entire
force were volunteers, and to the unfamiliarity of most of the banks
with transactions of the character involved; but, considering the
magnitude of the task and the circumstances attending it, the work
was handled with reasonable promptness and efficiency. The committee received subscriptions amounting to $1,186,788,400 from
978,959 subscribers. Interim certificates were issued as partial or
full payment was made on the bonds, the total number of pieces of
such certificates being 2,090,524. The total number of pieces of bonds
of the first Liberty loan issued to December 31 was 1,181,469. During
the campaign it became apparent that the department dealing with
the subscriptions to and deliveries of bonds should become an integral
part of the Federal Reserve Bank, and on October 1 the Federal
Reserve Bank took over the department, released most of the staff
to the institutions by which they had been loaned, and began the
organization of a permanent staff.
Early in the campaign an informal statement was issued from the
Treasury Department indicating the extent to which subscriptions
might be expected from each of the Federal Reserve districts on the
basis of their respective banking resources. Although the quota of
subscriptions expected from the Second Federal Reserve District
was $600,000,000, one of the early decisions of the Liberty loan
committee was to establish $1,000,000,000 as the minimum amount of
subscriptions which the committee should endeavor to obtain in this
district, and the whole campaign was organized to this end.
The campaign fell naturally into two divisions: (a) New York
City; (b) places outside of New York City.
CAMPAIGN IN NEW YOEK CITY.

In New York City the campaign was organized largely along professional and occupational lines, and the following committees were



280

ANNUAL REPORT OF THE FEDEEAL RESERVE BOARD.

appointed, each composed of leading men in their respective occupations :
National banks.
State banks.
Trust companies.
Savings banks.
Railroads.
Industrial corporations.
Public utilities.
Insurance.
Municipal employees.
Stock exchange houses.
Professions.
Lawyers.

Engineers.
Architects.
Physicians.
Dentists.
Savings and loan associations.
Sale of " baby " bonds.
Real estate.
Automobile trade.
Wholesale merchants.
Retail merchants.
Hotels.
Printing houses.

These committees were composed entirely of volunteer workers, a
very large number of whom participated actively in the campaign.
To supplement the work of these occupational committees, a group
of about 400 bond salesmen organized in teams with captains, made
a house-to-house canvass in New York City with substantial results.
The total amount subscribed in New York City was $987,269,450.
CAMPAIGN OUTSIDE OF NEW YORK CITY.

To assist and advise in the compaign outside of New York City
five subcommittees of the distribution committee were appointed,
their respective territories being eastern New York, central New
York, western New York, northern New Jersey, and Fairfield
County, Conn. These five district committees were composed of
partners of leading bond houses. They did not become responsible
for or undertake local selling campaigns, but acted in an advisory
capacity, assisted in organizing local committees and maintained direct contact between the district headquarters at the Federal Reserve
Bank and the various local committees, helped the work of the local
committees, and furnished them all the literature and material available as the campaign progressed. Owing to the compactness of
the Second Federal Reserve district it was possible to have this
form of organization, permitting direct contact with headquarters
instead of contact through the medium of subcommittees, and experience has demonstrated its effectiveness and desirability where
possible.
The governor of the Federal Reserve Bank wrote a letter to the
banks in this district outside of New York City, asking their officers,
in consultation with other bankers in the same place, to undertake the
formation of local committees to secure subscriptions for the bonds.
Each locality was advised of the amount of subscriptions which it
was expected to obtain, the amount being based largely on local bankDigitized foring resources. These local quotas proved helpful to the local comFRASER


DISTRICT NO. 2

NEW YORK.

281

mittees by giving them a definite figure toward which to direct
their campaigns. No uniform plan of organization was proposed.
Each committee was free to operate in the manner which it considered most effective, some making short campaigns after thorough
advance preparation, while others carried on the campaign during
the entire selling period ending June 15.
In all some 231 local Liberty loan committees were formed, nearly
all of which worked wTith remarkable zest and enthusiasm, and a
large number of the localities covered by these committees exceeded
the quotas assigned to them by the Federal Reserve Bank, based on
the expectation of raising $1,000,000,000 in the Second Federal
Reserve district.
The total amount subscribed outside of New York City was
$199,518,950.
m
THE CAMPAIGN IN GENERAL.

The progress of the organization at first was hampered by lack of
opportunity for preliminary preparation and to unavoidable delay in
settling important details of the issue until the campaign had been
in progress for some time. These handicaps were in large measure overcome and an effective organization was developed through
the large number of efficient and experienced men in every part of
the district who were willing, as a patriotic duty, to devote their
whole time and energy to the campaign.
Early in the campaign a women's committee for the district was
organized in cooperation with the women's Liberty loan committee,
and headquarters wTere established in New York. An organization
was effected for the canvass of New York City, as well as in some of
the larger places outside of New York City, and very effective work
was done by the committee and by a large number of women who
volunteered to assist in obtaining subscriptions.
On June 10 the Treasury Department began the publication of
the amount of subscriptions reported in each of the 12 Federal
Reserve districts. The first publication, which was only one week
before the close of the campaign, showed a total of $1,300,000,000,
the subscriptions reported for this district being $588,000,000. At
the same time publicity was given to the subscriptions reported in
the various localities in this district. Although undoubtedly the
figures published by the Treasury Department were below the amount
of subscriptions which had actually been made up to the date of
publication, owing to the slowness with which returns were made
by the banks outside of the Federal Reserve cities, the publicity
which was given to district and local quotas stimulated very great
activity throughout the last week of the campaign, and when the
books closed in this district it was found that the total subscriptions




282

ANNUAL BEPORT OF THE FEDERAL RESERVE BOARD.

had exceeded the $1,000,000,000 aimed at and actually amounted to
$1,186,677,400., out of a total of $3,035,226,850 for the entire country.
The following table shows the number of subscribers, the amount
of subscriptions, and the allotments actually made, subdivided into
five different classes graded as to size of subscription.
Amount.
$50 co $10,000
$10,050 to $50,000..,
$50,030 to $100,000..
$100,050 to $250,000
Above $250,000
Total

Number of
Amount of
subscribers. subscriptions.
973,614
3,582
778
285
700

$274,019,550
172,693,700
79,173,300
660,901,850

978,959

1,186,788,400

Allotment.
$274,019,550
127,460,850
35,628,000
180,723,250
617,831,650

The banks of the district, almost without exception, threw themselves into the campaign with energy and enthusiasm, working early
and late to obtain subscriptions, agreeing to loan at moderate rates
to bond purchasers who wished to borrow, operating for purchasers
of small denomination bonds, partial payment plans which entailed
much additional clerical work and supervision, taking custody of
bonds for safekeeping, and subscribing themselves for substantial
amounts of bonds. Without such complete cooperation on the part
of the banks the great success of the loan could not have been
achieved.
The bond houses placed themselves at the disposal of the Liberty
loan committee, and the general organization of the selling campaign was placed almost wholly in the hands of the experienced
bond men who thus volunteered. Besides organizing the campaign
they also secured a large volume of subscriptions from their clients.
Employers of labor in industrial centers and elsewhere cooperated
by bringing the bonds to the attention of their employees, and providing partial payment plans by which small denomination bonds
could be purchased and paid for gradually out of salaries or wages.
The campaign called forth a patriotic effort of great intensity
on the part of many thousands of volunteer workers who devoted
themselves to the one purpose of making the loan a tremendous
success.
SECOND LIBERTY LOAN.

On September 27 the Secretary of the Treasury announced that
he would offer for subscription between October 1 and 27 three billion or more dollars of United States 4 per cent, 10-25 year, convertible gold bonds due November 15, 1942, the exact amount of bonds to
be issued depending on the amount of subscriptions received. He
stated that he hoped subscriptions in excess of $5,000,000,000 would
be received from not less than 10,000,000 subscribers, and that bonds
would be allotted in excess of $3,000,000,000 to the extent of not




DISTRICT NO. 2—NEW YOBK.

283

over one-half of the amount by which the subscriptions exceeded
$3,000,000,000. The new series of bonds were made subject to (a)
State or inheritance taxes, (b) graduated additional income taxes,
commonly known as surtaxes, and (c) excess profits and war profits
taxes now or hereafter imposed by the United States.
As before, informal apportionment was made by the Treasury Department of the amounts expected to be raised in the various districts, the quota of the second district being a minimum of $900,000,000 (proportionate share of $3,000,000,000) and a maximum of
$1,500,000,000 (proportionate share of $5,000,000,000). The Liberty
loan committee determined from the outset to endeavor to reach the
maximum figure set for the district.
The headquarters organization was continued for the second
Liberty loan campaign with certain changes which made for greater
effectiveness and with great expansion in the number of committees
and number of workers who volunteered their services. The Liberty
loan committee was enlarged from 12 to 15, and the distribution committee from 12 to 22. The publicity committee was not reappointed,
but its work was carried on by a director of publicity. The committee for handling bond subscriptions was not reappointed, as its work
had been assumed by the Federal Eeserve Bank. No executive manager was appointed, but an executive secretary was appointed for the
distribution committee and the executive committee of the distribution committee was enlarged to include the director of publicity,
with a view to obtaining coordination at headquarters of all efforts
at distribution.
The campaign, as before, was organized in two main subdivisions:
(a) New York City; (b) the district outside of New York City.
THE CAMPAIGN IN NEW YORK CITY.

The work in New York City was organized on the same general
lines as in the preceding campaign, but with ample time for preparation the field was covered much more intensively.
The various occupational committees of the first campaign were
increased, and with the assistance of an advisory trades committee
the following committees "were organized and active during the
campaign, covering over 30,000 concerns in Greater New York
through the medium of approximately 15,000 volunteer workers:
Art dealers, art publishers, etc.
Automobile and allied.
Bakers and confectioners.
Banks, national.
Banks, State.
Banks, savings.
Blanket.
34365°—18
19



Books.
Brewers.
Butter, eggs, and cheese.
Caps.
Carpenters.
Carpet and rug.
Cement workers.

284

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Chemical and drug.
Children's dress manufacturers.
China, toy, and house furnishing.
Cloaks, suits, and shirt manufacturers.
Coal.
Collars1 and cuffs.
Corset.
Cotton goods.
Decorators.
Department stores.
Distillers.
Dry dock and repair company of
Brooklyn.
Electrical.
Elevator manufacturers.
Fish.
Fur.
Furniture.
General contractors.
Glove.
Hardware.
Hats.
Hide and leather.
Hotels.
Industrial committee.
Insurance companies.
Iron League.
Jewelry.
Laces, trimmings1, etc.
Ladies' garments.
Leather-glove industry.
Leather goods (small), trunks and
bags.
Lighting fixtures.
Linen.
Lumber.
Machinery and machine tool.
Marble.
Meat, wholesale and retail.
Men's clothing.
Mens' neckwear.
Men's underwear.
Metal ceiling.
Metal doors and windows.
Metal furring.
Milk.
Mosaic.
Municipal employees.
New York Cotton Exchange.
New York Produce Exchange.
New York Stock Exchange, houses.
Notion.
Ornamental iron workers.
Painters.




Paints and varnishes.
Paper boxmakers.
Paper manufacturers.
Perfumery and soap.
Plastering.
Plumbers.
Poultry.
Produce and fruits.
Professions.
Public utilities.
Real estate.
Refrigerator manufacturers.
Restaurants.
Retal grocers.
Ribbon.
Roofers and sheet metal.
Rubber.
Savings bank.
Shipping, import and export.
Shirts, pajamas, and boys' blouses.
Shoe retailers and jobbers.
Shoes, wholesale and retail.
Silk and velvets.
Spice.
Sporting goods'.
Stationery.
Steam and hot water.
Steam railroads.
Storage warehouse and van owners
trade.
Sugar trade.
Suspenders and garters.
Talking machines, pianos, and musical
instruments.
Tile.
Tobacco.
Toilet preparations, specialties.
Trust companies.
Umbrellas and cane.
Upholstery and lace curtains.
Wall paper.
Wholesale grocers.
Wine.
Wire workers.
Women's cotton and silk underwear,
Women's dress and waist industry.
Women's hosiery and knit underwear.
Women's millinerv.
Women's neckwear.
Women's organizations4.
Woodworkers.
Woolens and worsted.
Wrapper and kimono manufacturers.
Yarns and art goods.

DISTRICT NO. 2—NEW YORK.

285

A house-to-house canvass of Greater New York was conducted by
the metropolitan canvass committee with the assistance of some 35,000
volunteer workers. The entire city was divided among these workers
on the basis of election districts and the workers in each election district were furnished with the names of all the voters in the district.
The results of this house-to-house campaign were far more effective
than those accomplished in the first campaign with less detailed
preparation.
A number of booths were operated in public squares, on crowded
street corners, and in hotels, which served not only as centers for the
receipt of subscriptions and the sale of $50 and $100 bonds, but also
as places from which addresses could be made.
In order that subscriptions received at public meetings, booths and
theaters, as well as by the metropolitan canvass committee, might be
promptly allocated to banks situated near the residences of subscribers, a subscription department was organized which at one time
had as many as 150 workers. This department distributed a very
large number of subscriptions, avoided much confusion and congestion which would otherwise have occurred, and made many subscriptions effective which otherwise would not have been followed up.
A very successful parade of trade and other organizations, with
about 50,000 people in line, and led by a British tank, was held on
the day after Liberty Loan Day. The German submarine " TJC-5,"
which had been captured by the British and sent over for exhibition
during the campaign, was set up in Central Park, rechristened
" U-Buy-A-Bond," and visited by hundreds of thousands of people.
The total subscriptions received in New York City was $1,140,629,300.
THE CAMPAIGN OUTSIDE OF NEW YOKK CITY.

The general plan of organization which had hitherto prevailed
was continued during the second Liberty loan campaign. In order
to assist the various local organizations more effectively, the five
district committees at headquarters were increased to eight, each
committee having a somewhat smaller territory to cover. Through
these eight district committees the central Liberty loan committee
and the headquarters organization were kept in close touch with the
work in every part of the district, and invaluable assistance was rendered in determining the membership of the local committees, all
of which were appointed by the chairman of the central Liberty
loan committee. The number of local committees operating in the
second compaign was about 1,050, as compared with 231 in the first
campaign. As a suggestion to the local committees a plan book was
issued outlining certain methods of operation which had been found
effective. Partial payment cards were furnished upon request to



286

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

local committees for use in industrial establishments and banks. As
in the first campaign, quotas were assigned to each locality, and local
publicity given to the progress in filling these quotas resulted in
many cases in rivalries between places and an increased volume of
subscriptions. Each local committee laid out its plan of organization
along the lines which it considered best adapted to its territory, and
while a great variety of appeals was made through meetings, advertising, circularizing, and otherwise, the most effective method everywhere of securing actual subscriptions appeared to be a personal
canvass properly planned and directed.
The total subscriptions received from places outside of New York
City was $409,824,200.
THE CAMPAIGN IN GENERAL.

The publicity work during the second Liberty loan compaign was
under a director of publicity and subdivided into four bureaus—
news, advertising, features, and service.
The news bureau placed news items and articles with newspapers
and periodicals of all kinds. It obtained approximately 16,000 columns of newspaper publicity, exclusive of advertising. Among the
2,436 newspapers of the district it placed 41,800 articles, 2,752 editorials, 1,116 cartoons, 489 photographs, and 2,000 articles in foreign
language newspapers. The bureau had a staff of 40 well-known
writers who volunteered their services.
The advertising bureau obtained 1,563 pages of paid newspaper
advertising, of which 353 were in New York City. This space was
obtained entirely from advertisers who either donated space they
had themselves contracted for, or furnished the means of obtaining
space, no space being requested from the newspapers themselves.
Much of the advertising was illustrated. Forty-five million pieces
of literature were distributed. Eighty thousand square feet of electrical and painted sign space was donated, a 24-foot poster prepared
in cooperation with the national organization was pasted upon
all unused billboards of suitable size in the district, and various
other novel devices were employed.
The feature bureau dealt with the publicity and educational work
in theaters and moving-picture houses, among labor organizations,
boards of commerce and trade, clubs, societies and fraternal organizations, churches and church societies, farming and agricultural societies, political parties, and foreign language organizations and
newspapers. It also arranged the Liberty loan parade in New York
City, the exhibition of the captured German U-boat and the British
tank, and the flight of aeroplanes over New York City.
The service bureau had charge of the routine wTork of the publicity,
including the purchasing, information, stenographic, bookkeeping,




DISTRICT NO. 2—NEW YORK.

287

filing, auditing, poster and literature distribution, shipping, messengers, mail, and telephone departments.
The speakers' bureau was continued during the campaign as an
independent organization. It had about 150 speakers and furnished
speakers for about 1,000 meetings, indoors and outdoors, both in New
York City and in other parts of the State. As in the first campaign
the four-minute men rendered invaluable service.
The commissioner of education in New York State appointed
two representatives to act at headquarters during the campaign, and
through the cooperation of the school authorities, State and local,
a very effective campaign was carried on among the teachers and
pupils of the schools of New York State.
The women's committee in the second campaign had its headquarters with the men's committees, and a much more detailed organization was perfected. The women's Liberty loan committee,
with headquarters at Washington, appointed a chairman for the
district and chairmen for each of the three States represented in the
district, although in the case of chairmen for New Jersey and Connecticut, parts of their districts were outside of the Second Federal
Reserve District. The women not only carried on an effective campaign in New York City, but formed committees in 479 other places
outside of New York City, and, although organized separately, cooperated harmoniously with the men's committees throughout the
campaign and secured subscriptions in excess of $41,000,000.
The campaign opened October 1 and closed October 27, and was
therefore about two weeks shorter than the preceding campaign. It
soon became evident that in order to secure $1,500,000,000 of subscriptions, the maximum amount assigned to this district, it would
be necessary for a considerable volume of the subscriptions to be
carried by credit. Accordingly, the phrase " borrow and buy " was
used freely in all parts of the district, and the banks in New York
City and many other places cooperated generously by offering to
make loans on the bonds at the coupon rate of interest. It was felt
that the obligation of the borrowers to pay off their loans on Liberty
bonds during the months succeeding the campaign would be an
important stimulus toward effecting the necessary savings.
As in the preceding campaign, the central Liberty loan committee
and the distribution committee at headquarters met daily, and the
staff at headquarters was increased greatly over that of the preceding
campaign. The banks and bond houses throughout the district again
gave the heartiest cooperation. Almost the entire work throughout
the district was carried on by volunteers who labored with untiring
energy and zeal to make the loan a success. The number of workers
throughout the district was probably over 100,000, and their devo


288

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

tion to the cause in which they were enlisted was inspiring and
beyond all praise.
The publication of the subscriptions received in the 12 Federal
Reserve districts was begun by the Treasury Department on October
15. As before, reports of subscriptions came in slowly until the last
week, but the early publication of the subscriptions received as compared with the subscriptions expected was given much publicity and
attention in the newspapers, and undoubtedly had the effect of stimulating rivalry between the various districts and greatly increasing the
amount of subscriptions received. The subscriptions received from
soldiers and sailors, largely on the partial-payment plan, aggregating
$53,000,000, appeared as part of the subscriptions received in this
district, since whenever necessary they were financed, at the request
of the Secretary of the Treasury, through a group of New York
banks.
On October 15, the Treasury Department began to furnish this
bank with actual bonds in denominations of $50, $100, $500, and
$1,000 for sale over the counter during the campaign. About $59,000,000 worth of these bonds were sold in this district during the
campaign and a much larger amount could have been sold had the
bonds been available.
The total amount of subscriptions received in this district was
$1,550,453,000, and the total number of subscribers 2,178,359, the distribution being as follows:
Size of subscriptions.
$50 to $10,000
$10,050 to $50,000...
$50,050 to $100,000..
$100,050 to $200,000.
Above $200,000
Total

Number of
subscribers.
2,170,201
5,889
1,099
414
756
2,178,359

Amount
subscribed.
$441,100,700
168,326, 200
100, 722,650
68,166,700
772,136,750
1,550,453,000

Allotment.
$441,001,200
168,326,200
90, 790,900
51,374,800
412,874,350
1,164,367,450

On October 27, at the close of the campaign, the central Liberty
loan committee issued the following statement which accurately
summarizes the campaign:
The second Liberty loan has been a complete success. How high the oversubscription will go can not be known for several days. It is estimated that
the total subscriptions in the Second Federal Reserve District will be in excess
of $1,500,000,000, and what is equally important, the total number of subscribers
in this Second Federal Reserve District is greatly in excess of the number of
subscribers to the first loan. Both in the total amount received and in the
number of subscribers, the results are beyond our expectations. The reports
from the other Federal Reserve districts would indicate a similar surpassing
of the estimates.
This great success of the loan has been due to two factors. The first is the
spontaneous outburst of patriotic feeling and effort that has been common to
the whole country. The second is the excellent work of the organizations in




DISTRICT NO. 2—NEW YORK.

289

every Federal Reserve district. Without this latter the campaign could not
possibly have gained its stupendous success.
Naturally our own observation has covered particularly the Second Federal
Reserve District. As to this we desire to go on record as stating that we
have never before witnessed such an extraordinary response in the way of
organized, effective work, and unremitting, intelligent effort. From the moment
the campaign started this spirit was manifest, and as time went on it daily grew
in loyalty and intensity. The record which the Second Reserve District has
made is, indeed, a proud one, and it is a record achieved by the united effort
of all—by the villages and hamlets throughout the State as much as by the
larger towns and cities. To all the workers who have thus made this result
possible we wish publicly to make this expression of our appreciation.
Of greater import even than the securing of a great loan for the Government has been this unparallel evidence of a Nation bound together and animated with a single spirit of mutual good-will and devotion to the country.
RECEIPTS AND DELIVERIES.

The receipt of subscriptions and payments for the second Libertyloan was handled by the officers and about 150 permanent employees
of the Federal Reserve Bank.
Owing to arrangements which had been made to print the bonds
more rapidly no interim certificates were issued in connection with
the second Liberty loan, and the work of the bond-issue division of
the bank was accordingly much simplified.
The terms of payment prescribed by the Treasury Department
were as follows: Two per cent with application; 18 per cent on
November 15, 1917; 40 per cent on December 15, 1917; 40 per cent
on January 15, 1918.
From November 15 to 19 the following payments for bonds were
received:
In full:
By banks
Individuals
Cash sales during campaign
20 per cent payments

$807, 858,086
15,010, 080
59,051,300
881, 919, 866
67, 320,114
949, 239, 980

These payments were made in the following manner:
By book credit
By Treasury certificates of indebtedness
By cash
'__«

687, 741, 746
153, 972, 000
107, 526, 234
949, 239, 980

Between Saturday noon, November 17, and Monday noon, November 19, deliveries of bonds were made by registered mail and over the
counter to a total of $237,342,550, which, added to the amount previously sold for cash, made total deliveries to that date of



290

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

$296,393,850, or 1,062,918 pieces. The amount of bonds delivered up
to and including December 31, was $746,180,100, and the number of
pieces, 2,170,665.
The bond-issue division of the Federal Reserve Bank also undertook the exchange of interim certificates of the first Liberty loan into
definitive bonds, and definitive bonds of the first issue into definitive
bonds of the second issue. The number of employees engaged in this
work at its busiest period was 125; the number of pieces received
from owners for conversion to December 31, 1,624,336; and the number issued, 1,887,188. This division also undertook to exchange $1,000
bonds of both issues for equivalent amounts of bonds of smaller denominations, and vice versa. Up to December 31 the number of
pieces handled was 171,804.
LIBERTY LOAN EXPENSE.

The expenses incurred by the bank in handling the Liberty loans
were made with the understanding that the bank would be reimbursed by the Treasury Department for its expenditures. The following itemized list shows the expenses on account of the first and the
second loans, as well as the amounts for which the bank was reimbursed up to December 31, the figures for the first loan including
all expenses of departments engaged in handling matters relating
to this loan up to December 31:
First loan.
Advertising.
Buttons and badges
Bond-issue division
Circulars
General expenses
Posters and signs
Publicity
Postage
Rent
Salesmen

$68. 89
2, 192. 86
127, 120. 12
40, 455. 08
45, 978. 34
18, 861. 85
10, 281. 84
12, 937. 94
41,195.13
9, 008. 37

Telephone, telegraph, and shipping
Stationery
Traveling expenses
Miscellaneous

$4,357.91
23, 079. 19
6, 729. 27
3, 085. 00

Total
345, 351. 79
Reimbursed to Dec. 31, 1917__ 297, 310. 39
Net amount due

48, 041. 40

Second loan.
Department.
Bond issue
and certifi- Government
cates of indeposit.
debtedness.

Traveling expenses
Printing and stationery
Equipment
Express
Telegraph and telephone
Postage
Rent
Newspapers and directories
Miscellaneous
Petty cash fund

.

. ..
- —

.

$51,584.71
255.38
6,159,24
9,842.90
876.33
439.98
2,321.83
6,973.80
6.00
19,913.90

$16,176.30

98,374.07

Total.

Distribution.

Publicity.

1,935.64
24.00
145.86

$32,851.15
22,003.68
64,818.89
6,595.79
5,079.41
6,968.87
7,705.03
6,891.39
224.00
43,628.71

$26,261.49 $126,873.65
2,664.08
24,923.14
97,382.24 169,990.35
1,071.04
18,901.33
5,318.27
11,274.01
11,205.71
18,615.28
336.71
10,363.57
2,768.10
18,568.93
827.48
1,081.48
75,026.50 138,714.97

21,304.10

196,766.92

222,861.62

1,629.98
1,391.60
.72

542,362.16
242,379.94

Total
Reimbursed to Dec 31 1917
Net amount due




539,306.71
3,055.45

!

299,982.22

DISTRICT NO. 2—NEW YORK.

291

GOVERNMENT DEPOSITS.

The act of Congress approved April 24,1917, under which the first
Liberty loan was made, authorized the Secretary of the Treasury to
deposit in such national banks, State banks, and trust companies as
he might designate, upon the pledge of security, the proceeds arising
from the sale of bonds and certificates of indebtedness. The responsibility for the appointment of depositaries, the receipt and approval
of security, and the deposit and withdrawal of funds were placed
upon the Federal Reserve Bank under the instructions and supervision of the Treasury Department. Duly qualified depositary banks
were permitted to pay for certificates of indebtedness as well as
Liberty bonds by opening book credits therefor in favor of the
Treasury. A very large proportion of the deposits in depositary
banks were created in this way, and the transfer of funds and disturbances to the money market were thereby reduced to a minimum.
During the first loan period a special department with 32 employees,
in charge of a volunteer committee appointed by the Federal Reserve
Bank, the chairman of which was made an acting deputy governor,
undertook all the work connected with the management of Government deposits. During the second loan period this department, with
54 employees, was operated as a department of the Federal Reserve
Bank, with the same committee acting in an advisory capacity.
During the first loan period 306 banks qualified as depositaries by
pledging collateral of a specified character with the Federal Reserve
Bank. In order to facilitate the pledging of collateral, local custodians were appointed in 49. cities of the district. The largest
amount of collateral held at any one time against redeposit of certificate of indebtedness funds was $172,000,000; the largest amount
of securities held against redeposits of Liberty loan funds was $367,280,044 with local custodians and $274,518,118 in the vault of the
Federal Reserve Bank. The largest amount of Government funds
on deposit at any one time was $171,091,000 of certificate of indebtedness funds on June 11 and $304,353,448.12 of Liberty loan funds on
July 5. As the Treasury Department had stated that banks making
payment for Liberty bonds by the use of certificates of indebtedness
would receive preferential treatment in the apportionment of Government deposits, a readjustment of such deposits in depositary banks
was accordingly made on July 19.
During the second Liberty loan campaign the redeposited funds
were handled in the same manner but, at the request of this bank, a
larger number of banks qualified as depositaries, 531 in all. The
number of local custodians of securities was increased to 50. The
largest amount on deposit with depositary banks was $1,306,118,990.43 on November 30. while the largest amount of securities held



292

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

was $1,943,625,476.27 on December 1. In order to be prepared for
similar work during the next loan the department has been maintained intact and banks have been encouraged to retain their status
as depositaries and to leave their securities pledged with the Federal
Eeserve Bank for this purpose. The number of qualified depositaries on December 31 was 530, and collateral held aggregated $858,534,219.80.
WAR-SAVINGS AND THRIFT STAMPS.

Shortly before December 1 the Federal Eeserve Bank was requested by the Secretary of the Treasury and the National WarSavings Committee, acting under the Treasury regulations, to maintain a supply of war-savings stamps and certificates and thrift stamps
and cards for sale to agents of the first and second class, also to transmit applications for agencies when duly approved to the Treasury
Department.
The following supply of stamps was received prior to December 31:
War-savings stamps (pieces)
Thrift stamps (pieces)

4,000,000
3,500,000

of which on December 31 the following amounts had been sold or
consigned to agents:
War-savThrift
ings stamps. stamps.
New York City
New York State outside New York City
New Jersey
Connecticut
Total

Total.

Pieces.
242,022
50,968
19,920
4,400

Pieces.
785,421
144,100
43,628
8,600

Pieces.
1,027,443
195,068
63,548
13,000

317,310

981,749

1,299,059

ORGANIZATION OF THE B A N K .
INTERNAL MANAGEMENT.

During the year the directors of the bank held 36 meetings. The
executive committee, consisting of the governor or deputy governor,
the chairman, and four of the directors (all of the directors serving
upon it in turn), held 170 meetings. The committee on State bank
membership held 26 meetings and other special committees held 14
meetings.
At the first meeting of the directors held in 1917 the officers of the
bank were reelected for the ensuing year. With the increased scope
of the activities of the bank, many additions to the staff of the bank,
both official and clerical, have become necessary. J. Herbert Case,



293

DISTRICT NO. 2—NEW YORK.

vice president of the Farmers' Loan & Trust Co. of New York, was
elected deputy governor September 26 and entered upon his duties
October 8. George W. Davison, vice president of the Central Trust
Co. of New York, served as acting deputy governor from June 6
to July 31, during which time he conducted in a volunteer capacity
the Government deposit department of the bank. Fred I. Kent, vice
president of the Bankers' Trust Co. of New York, was elected acting
deputy governor September 26 to take charge of the licensing of
exports of coin, bullion, and currency under the President's proclamation of September 7, and of other matters pertaining to foreign
exchange. He resigned December 31 to act for the Federal Reserve
Board in handling these and similar matters. Two additional assistant cashiers were elected during the year, Arthur W. Gilbart on
June 6, and Adolph J. Lins on September 5. Two acting assistant
cashiers were also elected on September 5 to take charge of the bond
issue division of the bank, W. M. St. John, assistant cashier of the
National Bank of Commerce of New York, and J. W. Jones, manager
of the Long Island branch of the Irving Trust Co.
On January 1, 1917, the bank had 9 officers and 164 clerks; at thq
close of the year the staff consists of 16 officers and 829 clerks, the
increase having been made necessary by the general expansion of
the bank's business in all departments, and particularly by work connected with the Government financing. Following is a list of departments and the number of employees in each.
Number of
employees.

BANK DEPAKTMENTS.
Number of
employees.

Auditing and examination
29
Bookkeeping and statements
15
Chief clerk
7
Collection
11
Credit
11
Distribution
5
Discount
21
Federal reserve agent
5
Filing
18
General bookkeeper
1
Mail teller
17
Officers' mail
2,
Miscellaneous
3
Money
37
Night force
13
Note teller
8
Pages
9
Paying teller
2
Porters
17
Receiving teller
3
Return item and messenger department
17




Secretaries

3

Shipping
Statistics
Stenographic
Supply
Telephone operators
Transit
Vault
Watchmen and
floormen
Wire transfers
Total
GOVERNMENT

5
5
23
2
6
167
2
25
7
496

DEPARTMENTS.

Bond exchange
Bond issue
Government check
Government deposit
Certificate of indebtedness

99
129
19
52
34

Total

333

Grand total

829

294

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The year 1917 has made heavy demands on the staff of the bank.
The necessity of transacting promptly an unprecedented volume of
business, in inadequate and crowded quarters, with many new and
inexperienced clerks has thrown a strain on every member of the
staff which has been none the lighter on account of the great amount
of night work involved. In spite of the overwhelming tasks which
have often been imposed upon the bank in connection with the Government financing, the work of the bank has been kept up and a
spirit of cheerfulness and loyalty has prevailed among its employees
throughout the year.
In recognition of increased living costs which war conditions have
brought about and of the high pressure under which the entire staff
has worked during the past nine months, the directors, at the close
of the year, with the approval of the Federal Reserve Board, supplemented the normal compensation of all employees below the rank
of cashier by an additional payment equal to 15 per cent of annual
salaries not exceeding $1,500, and 10 per cent of salaries exceeding
$1,500.
At the close of the year the staff of the bank consisted of 498 men
and 351 women. Plans are being matured for the conduct of educational courses for both men and women, which will stimulate their
interest in the work of the bank and afford opportunities for development and advancement.
BAXK PREMISES.

During the year the offices occupied by the bank, at the time of the
last report, on the ground and fifth floors of the Equitable Building,
have been outgrown. The bank has, accordingly, engaged such additional space on the fourth and fifth floors of the Equitable Building
as could be obtained and has also found it necessary to lease the
entire building at 50 Wall Street. The Liberty loan committee and
the departments which handle Liberty bonds have been placed on the
fourth and fifth floors of the Equitable Building; while the transit,
securities, Government deposit, collection, and bookkeeping departments of the bank and part of its auditing staff, have been transferred to 50 Wall Street. The total amount of space occupied at
the close of 1917 was about 65,000 square feet.
The capacity of the large vault installed a year ago has become so
taxed with Libeirty bonds and other matter relating thereto that it has
become necessary again to avail of the courtesy of the New York
Clearing House Association and to use one of its vaults to store
currency.



DISTRICT NO. 2—NEW YORK.

295

ELECTION Or DIRECTORS.

To fill the vacancies caused by the expiration on December 31,1917,
of the term of Robert H. Treman and William B. Thompson, as directors of class A and class B, respectively, an election was held from
November 20 to December 6., Of the 224 banks in the group which
voted this year (banks having capital and surplus from $66,000 to
$200,000) only 91 chose electors and 84 actually voted. The following candidates for the vacancies were nominated:
For class A director: P. A. Canfield, of Kingston, N. Y., nominated by 1 bank; John C. Leggett, of Cuba, N. Y., nominated by
3 banks; Robert H. Treman, of Ithaca, N. Y., nominated by 53 banks;
C. P. H. Vary, of Newark, N. Y., nominated by 1 bank.
For class B director: Jacob Rice, of Kingston, N. Y., nominated
by 1 bank; William B. Thompson, of Yonkers, 1 T Y., nominated
S.
by 54 banks.
At the closing of the polls it appeared that the following votes had
been cast in the column of first choice :
For class A director: P. A. Canfield, 0; John C. Leggett, 2;
Robert H. Treman, T9; C. P. H. Vary, 2.
For class B director: Jacob Rice, 1; William B. Thompson, 83.
Mr. Treman was declared elected class A director and Mr. Thompson class B director, each for a term of three years beginning January 1, 1918.
On January 31 Charles Starek, class C director, resigned and the
Federal Reserve Board on February 9 filled the vacancy thus occasioned by the appointment of W. L. Saunders to serve for the unexpired term. He has been reappointed for the three-year term beginning January 1, 1918. On December 22 the Federal Reserve
Board redesignated Pierre Jay chairman of the board and Federal
Reserve agent for 1918.
MEMBER OF ADVISORY COUNCIL.

On January 3 the directors reelected J. P. Morgan, of New York
City, a member of the Federal Advisory Council from Federal
Reserve District No. 2 for the year 1917.
GENERAL BUSINESS CONDITIONS,
BANKING POSITION OF THE DISTRICT DURING 1 9 1 7 .

The following table gives comparative figures for important items
in the statement of members of the New York Clearing House Asso-




296

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

eiation, State banks and trust companies in New York State, and
national banks in this district (in thousands of dollars) :
Dec. 30, 1916.

New York clearing house banks:
Loans, discounts, and investments
Gold and lawful money
On deposit with Federal reserve bank.
Net demand deposits
Net time deposits
National-bank note circulation

Dec. 29,1917. I Decrease.

$3,339,450
439,065
193,698
3,334,272
159,785
28,955

$4,118,775
106,228
561,439
13,885,273
198,492
34,104

State banks and trust companies in New York
State:
Nov. 29, 1916.
Nov. U, 1917.
3,076,129
Loans and investments
2,626,604
Due from banks, bankers, and trust com307,692
panies
373,610
Cash in vault
235,240
124,772
Due from Federal reserve bank
183,367
(2)
Customers' liability on acceptances
110,159
83,041
3,449,427
Deposits
3,121,992
97,676
Bills payable and residcounts
521
National banks in district No. 2:
Dec. 27, 19:6. Nov. 20, 1917.
2,522,568
Loans and discounts
2,238,642
Customers' liability on letters of credit and
acceptances
62,495
73,529
United States bonds and notes and certificates of indebtedness
967,189
87,420
646,296
Stocks and bonds
600,792
448,346
Due from Federal reserve bank
229,662
122,390
Cash in vault
355,830
190,866
Due from banks and bankers
211,865
Due to banks and bankers
1,072,487
1,190,571
699,495
United States deposits
(2)
Deposits, demand and time
2,587,638
2,316,488
Bonds and securities borrowed
94,435
8,540
Bills payable and rediscounts
,
224,812
18,976
1

Includes United States deposits.

2

Increase.
$779,837

$332,837

367,741
551,001
38,707
5,149

449,525
65,918
110,468

183,367
27,118
327,435
97,155
283,926
11,034

233,440
20,999
118,084

879, 769
45,504
218,684
699,495
271,150
85,895
205,836

Not shown separately.

Among the important changes shown in the statement of the New
York Clearing House banks is the transfer of approximately threefourths of the banks' holdings of gold and lawful money from their
vaults to the Federal Reserve Bank, due to changes in reserve requirements, discussed earlier in this report, and also to the entrance
of practically all of the large State banks and trust companies of
the city into the Federal Eeserve system. Loans, discounts, and investments show an increase of $779,000,000, or 23.5 per cent, due principally to investments in or loans upon United States Government
securities, the amount of such investments and loans on December 28,
1917, being $604,000,000. Because of withdrawals of deposits from
this center by banks in other districts, the increase in net deposits
has been much less, totaling only $590,000,000. The proportion of
gold and lawful money in vault and deposited with Federal Eeserve
Bank to the aggregate net deposit liability shown above decreased
from 18.15 per cent at the end of 1916 to 16.35 per cent at the end of
1917.
Loans and investments of State banks and trust companies in New
York State increased $449,000,000, while deposits show a much
smaller increase, the difference being offset almost entirely by an increase in bills payable and rediscounts of $97,155,000. Eeserve de


DISTRICT NO. 2—NEW YORK.

297

posits of $183,000,000 have been placed with the Federal Eeserve
Bank, reducing cash in vault by $110,000,000 and balances with
banks and bankers by $66,000,000.
The most important increases in the figures for national banks in
the Second Federal Eeserve District are $880,000,000 in holdings of
United States obligations, offset in part by an increase of $699,000,000
in United States deposits. Loans and discounts show an increase of
$284,000,000, which is slightly greater than the amount of the increase in demand and time deposits. Reserves carried with the Federal Eeserve Bank show an increase of $219,000,000, reflecting transfer of cash from vaults to the Federal Eeserve Bank.
The increase in the amount of bills payable and rediscounts of
national banks and State institutions, whose reports are summarized
above, from $19,000,000 to $322,000,000, is the most significant indication of the strain which has come upon the banking machinery of
the district, the major portion of the rediscounting and borrowing
having been with the Federal Eeserve Bank.
MONEY RATES.

Money rates were relatively low in the early months of 1917 and
continued so until some time after the declaration of war on April 6.
Commercial paper was sold freely at rates ranging from 3 to 5 per
cent; bankers' acceptances were sold on a basis of 2J to 3f per cent;
call money rates were at or below 2^ per cent, and rates for time
money approximated those for commercial paper.
A distinctly firmer tendency became apparent as the Government's
preparations for placing the first Liberty loan progressed. Call
money often touched 6 per cent, and with the higher call rates and the
desire of the banks to keep their funds in available form, time loans
on stock exchange collateral became difficult to obtain. Member
banks in New York City availed themselves freely of the rediscount
and loan facilities of the Federal Eeserve Bank, with the result that,
though rates were very firm, stability unknown in former periods of
strain was given to the money market. Only once during the period
of financing the first loan did call money go above 6 per cent. Following the installment payment on the first loan due June 28 and the
maturity of certificates of indebtedness which had been issued in
anticipation of the loan, rates for call money and commercial paper
became easier and continued so for some weeks.
As the time for placing the second Liberty loan approached, rates
again advanced, commercial paper advancing from 4^-5 per cent
in early August to 5-5| per cent in the early part of September, and
5|-6 per cent in October, where it remained until payment of the
first installment on the second Liberty loan was made on Novem


298

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

ber 15, when it declined to 5J—of per cent. Another upward turn
came during the last week of the year and carried the rates again to
5|—6 per cent. The call money rate advanced early in September
and ruled close to 6 per cent, with one loan of $50,000 on September
25 at 7 per cent. Early in October, however, when the actual campaign for placing the second Liberty loan began, the rate declined
to 4 per cent and remained steady at about that figure throughout
the month of October and the first half of November, the steadiness
in the supply of accommodation having been accomplished largely
through the cooperation of all the banks in New York City with
the Federal Eeserve Bank and the Liberty loan committee. During
the last few months of the year the rates quoted on time loans or
collateral were 5|-6 per cent and during the last week of the year
call money rates again stiffened and held close to 6 per cent.
The tendency throughout the year has been toward firmer rates
for loans of all kinds, and the preference given to Government borrowings tended to diminish somewhat the supply of credit available
to other borrowers. Commercial paper and banker's acceptances, because of their availability for rediscount with the Federal Eeserve
Bank, have been less affected than loans on stock exchange collateral
and have found a reasonably favorable market.
GOLD MOVEMENT.

The United States Treasury statement of money in circulation,
dated January 1, 1918, shows gold in the country $3,040,439,343, as
compared with $2,864,841,650 on Januarj? 1, 1917, an increase of
$175,597,693.
The gold production of the United States and its dependencies in
1917 was $84,456,600. Imports of gold from all sources during the
year were $553,713,000. Gold exports were $372,171,000, mainly to
South American countries, Cuba, Spain, Japan, and India.
On August 13 the Federal Eeserve Board requested the Federal
Reserve Bank of New York to obtain information relative to the
amount and destination of gold exports from this district to foreign
countries. On September 7 the President declared an embargo on
gold, silver, and currency shipments out of the country, placing in
the hands of the Secretary of the Treasury and the Federal Eeserve
Board the enforcement of this embargo and granting discretion to
issue permits for exports where not contrary to the public interest.
Since that date, the Federal Eeserve Bank has received and passed
upon applications originating in this district for permission to export gold, silver, or currency and transmitted such applications with
its recommendation to the Federal Reserve Board for final action.



DISTRICT NO. 2 — N E W YORK.

299

FOREIGN LOANS.

In the last annual report extensive foreign borrowings during the
war were listed. During 1917 such borrowings almost entirely
ceased, the principal loans placed being $250,000,000 British Government one and two year secured notes in January, $8,098,250 ten-year
bonds of the Province of Buenos Aires in February, $100,000,000
French Government two-year secured notes in March, $4,000,000 fiveyear bonds of Genoa, Italy, $2,400,000 twelve-year notes of Bolivia,
$100,000,000 one-year notes of the Dominion of Canada sold in
August, and British treasury bills placed in several issues of $15,000,000 each by Messrs. J. P. Morgan & Co., the amount of this
issue outstanding at any one time not having exceeded $100,000,000.
During 1917 the Secretary of the Treasury5 under authority of Congress, has advanced to the Governments of Great Britain, France,
Italy, Russia, Belgium, Servia, and Eoumania a total of $3,656,129,750, receiving in exchange interest-bearing obligations of those
nations.
FOREIGN BANKING CONDITIONS.

The following statements show the condition of three leading
European banks toward the end of 1916 and 1917:
BANK OF ENGLAND.
Dec. 27,1916.
Circulation
Public deposits
Other deposits
Government securities
Other securities
Reserve
Bullion
Proportion of resources to liability

£39,675,000
52,116,000
126,726,000
57,187,000
106,461,000
33,079,000
54,304,915
18.49

per cent

Dec. 27,1917.
£45,943,000
42,009,000
J24,161,000
58,303,000
94,888,000
30,843,000
58,337,469
18.56

BANK OF FRANCE.
Dec. 28,1916.

Gold
Silver
Discounts and advances.
Circulation
Deposits
Treasury deposits

Francs.
5,075,914,550
294,869,000
1,937,278,000
16,678,817,000
2,260,224,000
15,009,000

Dec. 27,1917.
Francs.
5,351,524,800
247,656,889
2,136,760,143
22,336,799,275
2,913,741; 500
253,858,163

IMPERIAL BANK OF GERMANY.
Dec. 30,1916.

Gold
Loans and discounts
Circulation

34365°—IS



Marks.
2,520,473,000
9,609,767,000
8,054,652,000

Dec. 31,1917.
Marks.
2,405,580,000
14,596,100,000
11,467,740,000

300

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
NEW YORK STOCK EXCHANGE.

During the early months of the year, trading on the New York
Stock Exchange both in stocks and bonds was quite active, but following our entrance into the war the tendency has been toward
much lighter trading at decreasing prices. Bond prices had for
some time shown downward tendencies and this movement quickly
extended to stocks when it became apparent that companies which
had profited greatly from war activities prior to our becoming a
belligerent would not continue to be permitted to make and retain
abnormal profits. As a result of this factor and the competition
of Government securities, prices have shown an almost continuous downward trend and have reached levels lower than any recorded
since the autumn of 1914.» The New York Times record of the average prices of 50 representative stocks at the high point in 1917 was
90.40 on January 4, 1917, as against 101.51 on November 20, 1916,
and 65.88 at the end of 1917, while the low of 57.43 for the year was
touched on December 20. The price of 40 representative bonds at
the beginning of 1917 was 88.63; the high for the year 88.48, January 26; low, 74.21, December 20; close, 76.80. A decided upward
turn in the last week of the year, reflected in the figures given, followed the announcement of Government control of railroads.
The following record of comparative figures shows the volume of
stocks and bonds dealt in on the New York Stock Exchange for the
past seven years.
Shares.
1917.
1916.
1915
1914.
1913.
1912
1911.

$184,536,371
230,060,900
173,155,644
45,989,158
76,134,996
118,452,676
127,376,149

.

Bonds.
$1,052,346,950
1,133,935,300
955,525,200
460,472,500
497,158,600
645,300,000
878,933,700

CROPS.

As crop planting time approached in the spring of 1917, realization that the world's food supply was in danger of falling materially
below demand led to vigorous efforts throughout the country to increase the yield of staple products. This movement was greatly
stimulated by the extremely high prices which such products commanded. As a result, a very much increased acreage was planted
with resulting heavy yields of several of the more important commodities, though wheat production, upon which attention naturally
centered, did not increase very greatly over the short crop of 1916.
The corn crop of 3,159,494,000 bushels, valued at $4,053,672,000, the



DISTRICT NO. 2—NEW YORK.

301

oats crop of 1,587,286,000 bushels, valued at $1,061,427,000, and the
potato crop of 442,536,000 bushels, valued at $543,865,000, are the
largest on record. Other crops whose production established records
were rye, sweet potatoes, beans, onions, cabbages, and tobacco. The
cotton production is estimated at 10,949,000 bales.
EXPORTS AND IMPORTS.

During the early months of the year exports and imports at the
port of New York ruled very materially above those of the preceding year, but in later months have only approximately held their
own as compared with a year ago, the difficulties of obtaining shipping space having contributed to the later restriction of foreign
trade. Shipments to and from Europe, other than those made by
the Government, have shown reductions, while there has been a substantial gain in trade with South American countries. Exports from
this customs district for the calendar year 1917, not including Government shipments, aggregate $2,937,000,000, a gain of $147,000,000
over last year, and imports aggregate $1,360,000,000, a gain of $103,000,000.
GENERAL'BUSINESS CONDITIONS.

The early months of 1917 were marked by great business activity,
hampered in some degree by difficulties of transportation and embargoes on freight shipments which the railroads found it necessary
to impose.
During the late spring, following our declaration of war against
Germany, there was a temporary recession of activity in retail lines,
occasioned, apparently, by a tendency of large sections of the population to economize. This movement, which created widespread
apprehension among dealers in articles in the nature of luxuries, was
short lived, and, with the coming of fall, business in most lines revived and became very active, the most marked exception being the
building trade, which continued very quiet throughout the remainder
of the year.
There have been very far-reaching adjustments in business and
industry; such lines as machinery, munitions, steel products, cotton
and woolen textiles and clothing and similar activities being stimulated by war conditions. On the other hand, the automobile industry, manufacturers of household furniture, manufacturers of various
building materials, and many other lines have experienced curtailment of business to a marked degree, but this curtailment has, apparently, not been sufficiently great to offset the expansion in essential
war industries; consequently excessively keen competition for rail


802

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

road transportation facilities, for fuel supplies, and for the products
of steel mills has taken place, with the result that the railroads,
though doing all in their power to cooperate in handling the unprecedented volume of traffic pressed upon them, have been unsuccessful.
Coal production and distribution, though 50,000,000 tons above the
normal output, is still estimated by the United States Fuel Administration to be 50,000,000 tons short of the amount required for consumption.
Constantly increased difficulty in obtaining and retaining labor
supply has been experienced by practically all industries, and heavy
advances in the wage scales and salaries have been made in recognition of the higher costs of living. Prices of materials have increased
steadily, and in many cases rapidly, so that the whole level of production cost and the selling price of finished products is materially
higher than at the beginning of the year. Bradstreet's index number
for commodity prices for December 1, 1917, is $17.8113 as compared
with $13.6628 December 1, 1916, an increase of over 30 per cent.
The tendency on the part of business and manufacturing interests
is to proceed with great caution in the purchase of materials and the
manufacture of goods, buying orders being restricted, so far as possible, to immediate needs.




APPENDIX.
Capital account reconciliation, Jan. 1, 1911, to Dec. 31, 1917.
Capital paid in Jan. 1, 1917
Sundry increases:
Due to increase in capital and surplus of member banks
Due to organization of new national banks
Due to admission of State banks and trust
companies
'

$11, 865, 750

$473,150
55, 500
6, 391, 300
6, 919, 950
18, 785, 700

Sundry decreases:
Due to decrease in capital and surplus of member banks
Due to banks liquidated
.

2, 250
98,600
100,850

Paid-in capital Dec. 31, 1917

18, 684, 850

Summary of Federal Reserve notes.
Total issued to bank:
1914, 1915, 1916
1917

160, 480, 000
415, 000, 000
575, 480, 000

Less notes unfit for circulation retired 1914,
1915, 1916
— $53, 476, 235
Less notes unfit for circulation retired 1917
65, 665, 200
119,141,435
Amount outstanding Dec. 31, 1917
As follows:
In actual circulation
:
Held by Federal Reserve Bank Dec. 31, 1917

456, 338, 565
397,353,805
58,984,760

On Dec. 31, 1917, the Federal Reserve agent held against Federal
Reserve notes:
Gold certificates
250, 598, 565. 00
Commercial paper
206, 538, 872. 84
303




304

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Total of Federal Reserve notes paid out by the Federal Reserve Bank of New
York, by months. 1017.
To member
banks.
January..
February .
March
April
Mav
June...
July
August
September...
October
November
December

$9,164,000
40,294,000
38, 757,000
32,994, 500
25,578,000
27,006,000
25, 598, 000
30,686,000
33,950,250
40,436,000
54 231 000
70,240,000

Total paid to nonmember banks

.

. .

$670 000
3,914.500
2.644,000
3,657.000
2,086,000
2,424.000
1,361.000
3,122, 000
7,450.500
12,857 800
6 487 000
4,346,000

428,934,750
50,999,800

50,999,800

479,934,550
415,000,000

Total received from Federal Reserve agent
Movement

To nonmember banks.

of Federal Reserve notes between Federal Reserve Bank of New
York and other Federal Reserve Banks, Jan. to Dee. 31, 1917.

From Federal Reserve Bank o—
f

Notes of Federal
Reserve Bank
of New York
received.

Atlanta
Boston
Chicago
Cleveland
Dallas
Kansas City
Minneapolis
Philadelphia
Richmond
St Louis
San Francisco
Total
Summary

$1,236,500.00
9,482,800.00
3,425,000.00
1,250,300.00
599,420.00
127, 750. 00
390,500.00
11,169, 902. 50
999,100. 00
922,200.00
393, 580. 00
29,997,052.50

of gold settlement

From or to Federal Reserve
Bank o—
f

To Federal Reserve Bank o—
f

Atlanta
Boston

Chicago.. .
Cleveland
Dallas
Kansas City
Minneapolis
Philadelphia
Richmond
St. Louis
San Francisco

$3,030, 710
3,018.450
1,698, 920
1,725,105
964,265
929,160
792 3^5
5,818. 700
3,600,750
661,150
2,560,440

. . .

Total

24, 799,975

fund operations, Jan. 1, 1917, to Dec. 31, 1917.

Amounts received and paid by
the New York Federal Reserve
Bank in settlement of accounts
due.
Received.

Net gain.

Net loss.

Paid.

Boston
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco,

$1,269, 785,000
1,986,687, 000
1,114,627, 000
790, 701, 000
256,241, 000
1,196,324,000
338; 856, 000
235, 475, 000
240, 207,000
2 2 , 794, 000
770, 196, 000

$1,289, 707. 000
1, 665,135, 000
935,299, 000
875,366, 000
352,552,000
1,505,874,000
335,296,000
338, 041, 000
203, 552,000
280, 949,000
910,253, 000

Total...,
Loss....,

8,426,893, 000
265,131,000

8,692,024,000




Their notes
shipped.

$321, 552. 000
179,328^ 000

$19, 922, 000
84, 665, 000
96,311, 000
309,550, 000

3,560,000
102, 566, 000

36," 655,666
53,155,000
140, 057, 000
541,095,000

806,226,000
265,131,000

305

DISTRICT NO. 2—NEW YORK.

SCHEDULE SHOWING WHEN THE PROCEEDS OF ITEMS WILL BECOME AVAILABLE.

Immediate credit: New York (Manhattan, if received by 9 a. m.).
One day after receipt: Boston, Philadelphia, Richmond, Baltimore, and
Iioanoke.
Two days after receipt (business days) : Members of clearing houses in
Cleveland, Cincinnati, Chicago, Atlanta, Minneapolis, St. Paul, St. Louis,
Kansas City, Mo., Kansas City, Kans. Banks in Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, 1 New Hampshire, New
Jersey, New York,1 Pennsylvania, 1 Rhode Island, Vermont, and Virginia.1
Four days after receipt (business days) : Members of clearing houses in
Dallas, NewT Orleans. Banks in Alabama, Arkansas, Florida, Georgia,1 Illinois,1
Indiana, Iowa, Kansas, 1 Kentucky, Michigan, Minnesota,1 Mississippi, Missouri,1
North Carolina, Ohio,1 South Carolina, Tennessee, West Virginia*, and Wisconsin.
Eight days after receipt: Banks in Arizona, California, Colorado, Idaho,
Louisiana,1 Montana, Nebraska Nevada, New Mexico, North Dakota, Oklahoma,
Oregon, South Dakota, Texas 1 Utah, Washington, and Wyoming.
NOTE.—Two-day items we forward on Saturday will be available Tuesday; four-day
items we forward Thursday will be available Tuesday, and those forwarded Friday and
Saturday on Wednesday.
Operations in United States Government obligations during 1911.
Purchased from United
States Treasurer.
Issue.
Under
section 18.

Other
purchases.

$1,776,500.00
Conversion 3s, 1917-1947
2,105,000.00
2 per cent consols, 1930
100,000.00
Panama Canal, 1916-1936
225,000.00
Panama Canal, 1918-1938
521,000.00
1-year notes due Jan. 1,1918
1,255,000.00 $1,532,000.00
1-year notes due Apr. 1,1918.
750,000.00
1-year notes due July 1,1918.. J
955,000.00
1-year notes due Oct. 1,1918...
3 per cent, 1908-1918
50,000.00
3J per cent 15-30 year Liberty
1,500,000.00
loan bonds of 1917
3 | per cent 15-30 year Liberty
loan bonds of 1917 (bonds
57,386.68
and interest purchased)
4 per cent 10-25 year second
Liberty loan bonds of 1917...
25,000.00
2 per cent certificates of indebtedness due June 29,1917
20,000,000.00
3 per cent certificates of indebtedness, dated Apr. 25,
1917, due June 30,1917
3 per cent certificates of indebtedness, dated May 10,1917,
due July 17,1917
7,332,000.00
Z\ percent certificates of indebtedness, dated May 25,1917,
due July 30,1917
814,000.00
3£per cent certificates of indebtedness, dated June 8,1917,
due July 30,1917
4,977,000.00
3i percent certificates of indebtedness, dated Aug. 9,1917,
due Nov. 15,1917
3£ percent certificates of indebtedness, dated Sept. 17,
1917, due Dec. 15, 1917,
called for payment Dec. 9,
1917
2,562,000.00
1

Purchased
open
market.

$222,550.00

"906,'666." 66

26,200.00

Sold, converted, or redeemed during 1917.

Balance on
hand Tec.
31, 1917.

$521,000.00 $1,255,500.00
2,327,500.00
50.00
100,000.00
1,125,000.00
520,000.00
1,000.00
2,787,000.00
750,000.00
955,000.00
50,000.00
1,118,900.00

2 407,300.00

53,535.54
3,429,698.50

3,851.14

2,600.00

3,859,198.50

20,000,000.00
18,950,000.00
1,500,000.00
2,590,000.00
1,846,000.00
5,005,000.00

40,115,000.00

18,950,000.00
8,832,000.00
3,404,000.00
6,823,000.00
5,005,000.00

42,677,000.00

Except banks in cities referred to..
2 Held for delivery to holders of participation certificates and not included in earning assets.



306

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Operations in United States Government obligations during 1917—Continued.
Purchased from United
States Treasurer.
Issue.
Under
section 18.

3 | percent certificates of indebtedness, dated Aug. 28,1917,
due Nov. 30,1917
4 per cent certificates of indebtedness, dated Sept. 26,
1917, due Dec. 15, 1917,
called for pavment Dec. 11,
1917
4 per cent certificates of indebtedness, dated Oct. 11,1917,
due Oct. 18,1917..
4 per cent temporary loan
dated Oct. 16, 1917, due
Oct.18,1917
4 per cent temporary loan
dated Oct. 17, 1917, due
Oct. 18, 1917
2 per cent temporary loan
dated Oct. 29, 1917, due
Oct. 31,1917
2 per cent temporary loan
dated Nov. 15, 1917,, due
Nov. 19,1917
1
2 per cent temporary loan
dated Nov. 19, 1917, due
Nov. 20,1917
4 per cent certificates of indebtedness, dated Oct. 24, 1917,
due Dec. 15, 1917
4 per cent certificates of indebtedness, dated Nov. 30,
1917, due June 25,1918..

Other
purchases.

Purchased
open
market.

Sold, converted, or redeemed during 1917.

Balance on
hand Dec.
31,1917.

$65,045,000.00 $65,045,000.00

6,026,000.00

6,026,000.00

$100,000,000.00

100,000,000.00

10, OW, 000.00

10,000,000.00

20,000,000.00

20,000,000.00

20,000,000.00

20,000,000.00

150,000,000.00

150,000,000.00

150,000,000.00

150,000,000.00
59,992,000.00

621,000.00

59,992,000.00

42,540,000.00

28,161,000.00 $15,000,000.00

United States bonds surrendered for conversion during 1917:
United States 2 per cent consols, 193CL
_
•
United States Panama Canal, 1916-1936
United States Panama Canal, 1918-1938

$2,327,500
100, 000
1,125, 000
3, 552, 500

Beceived by conversion during 1917:
Jan. 1: United States 1-year 3 per cent notes due Jan., 1918
521, 000
United States 3 per cent convertible bonds of 1917-1947
521, 000
Apr. 1: United States 3 per cent convertible bonds of 1917-1947. 1, 255, 500
United States 1-year 3 per cent notes due Apr. 1
1,255, 000
3, 552, 500
Amount 1-year notes sold
Amount of conversion bonds sold




520, 000
521, 000

DISTRICT NO. 3—PHILADELPHIA.
R. L. AUSTIN, Chairman <md Federal Reserve Agent.
I. INTRODUCTION.

The period covered by this report has been probably the most
momentous in the life of the Nation since the days of the Civil War.
The resources of the banks have been called upon to meet the abnormal demands growing out of the vast increase in business incident to the war, and on account of the floating of the Liberty loans.
The Federal Eeserve Banks have enabled them to meet these demands.
I I . RESULTS OF OPERATION.

Comparative

statement

of condition of the Federal Reserve Bank of
Philadelphia.
Dec. 31, 1917.

Dec. 30, 1916. Dec. 31,1915.

Collateral notes—members
Bills discounted—members
Bills bought in open market—
United States bonds and notes.
Municipal warrants

$4,008,400.00
31,903,836.94
18,390,067.91
9; 649,950.00
10,000.00

$900,000.00
663,076.79
13,656,430.08
2,825,000.00
465,112.22

$168,274.06
2,542,975.94
1,993,750.00
1,484,147.13

Earning assets..
Interest accrued on United States bonds and notes
Cost of unissued Federal Reserve notes
Expenses paid in advance
Transit department expenses
Furniture and equipment—general
Furniture and equipment—transit department
Organization expense
Due from Federal Reserve banks—net
Due from banks and bankers
Exchanges for clearing house, cash items, etc
Due from member banks—overdrafts
Federal Reserve notes on hand
National and Federal Reserve notes of other banks
Nickels and cents
Mutilated currency forwarded for redemption
Miscellaneous assets
Gold settlement fund
Gold redemption fund*
Gold coin and certificates
Bank of England sterling gold account
Other lawful money

63,962, 254.85 18,509,619.09

6,189,147.13

906.44
511.99
055.51

17,057.93
27,708.01
2,445.83
1,367.18

10,142.15
43,172.04
1,684.23

25,580.56

15,409.87

12,370, 908.10
1,517, 804.61
7,378, 564.69
12, 804.81
4,348, 590.00
1,353, 500.00
209.09
56, 027.50
110, 032.85
32,101, 000.00
65,445, 755.00
19,064, 667.50
3,675, 000.00
1,189, 996.10

5,382,501.30
609,389.97
3,864,733.22

KESOURCES.

171,140.00
463,476.00
121.89
132,500.00
8,042,000.00
100,000.00
16,988,892.50

18,491.31
31,517.06
3,025,971.02
1,046,543.43
33,959.73
380,267.50
215,885.00
100.83
9,695,000.00
*7,' 445," 485." 66

466,154.30

3,358,145.30

121,476, 418.60

25,597,046.80

20,498,630.30

212,674,169.60

Reserve
Total resources.

54,794,517.09 31,495,511.73

LIABILITIES.

Capital
Profit and loss
Unearned discount and unearned interest.
Government deposits
Due to member banks
Cashier's checks outstanding
Federal Reserve notesl
Miscellaneous liabilities
Total liabilities.

6,142,150.00
5,228, 100.00
220,238.27
89, 966.68
160,902.51
39, 559.33
5,387,488.53
3,145, 549.05
103,000,930.13 44,965, 072.26
435,026.66
26, 015.72
97,325,755.00
1,300, 000.00
254.05
1,678.50

14,099. 28
787,178.45
25,424,376.56
107.63

212,674,169.60

31, 495,511. 73

54,794,517.09

5,269,600.00

239*8*1

1
In June, 1917, the statement was changed so as to include gold with Federal Reserve Agent under
"Gold redemption fund/7 and "Federal Reserve notes" now represent gross liability for Federal Reserve
notes, instead of only the net liability.

307


308

ANNUAL BEPORT OF THE FEDERAL RESERVE BOARD.

The large increase in the bank's figures is due to the increase in reserve deposits of member banks, resulting from the amendment to
the act affecting the reserves, to the admittance to membership of a
number of large trust companies, the increase in the amount of
Federal Reserve notes outstanding, and the operation of the transit
department.
Federal Reserve notes in circulation at the close of the year
amounted to $92,977,165, and exceeded the net amount of member
bank deposits by $226,104. Every effort has been made to accumulate
gold through the issue of Federal Reserve notes, and on December
31, the amount of gold deposited against notes was $65,445,755. The
accumulation of this fund has largely increased the bank's loaning
power, and from time to time transfers have been made from it to
maintain the bank's reserve.
Due to the admission of new members and the increase in the
capital and surplus of member banks, the paid-in capital of the
bank increased $914,050 during the year, and at the end of the year
amounted to $6,142,150.
The following table shows the results of the operation of the bank
for the year 1917:
Earnings for 1917
$1, 015,959
Expense of operation of bank proper
$165, 843
Cost of Federal Reserve currency issued (including expressage, insurance, etc.)
70,340
Miscellaneous charges account note issues
Depreciation on furniture and equipment
3, 782
Transit department disbursements in excess of net service
charges received
22,120
Total

262, 085

Net earnings for year
Profit and loss, Jan. 1, 1917

753, 874
89, 966

Total
Dividends paid:
Date paid, June 30, 1917; period covered, July 1, 1915,
to Dec. 31, 1915; amount
155,320
Date paid, Dec. 31, 1917; period covered, Jan. 1, 1916,
to June 30, 1917; amount
466,830
Interest paid on stock surrendered
1, 452

843, 840

Total
Profit and loss, Jan. 1, 1918




623, 602
220, 238

RESOURCES AND; LIABILITIES ~ 1916 A D 1917
M
FEDERAL RESERVE BANK OP PHILADELPHIA
"PP

a

p

T
W

I

FOB.' OF 3TATCKCNT CHANCED TO SHOW FeoeRAU RESERVE J1OTES IM CIRCULATION A3 A LIABILITY OP THE BANK. AHO GOtO WITH PCDERAL RESERVE AGEOT A5 AN ASSET




CO
CHART N O . 1.

o

310

ANNUAL

REPORT OF T H E FEDERAL RESERVE

BOARD.

ASSETS
FEDERAL RESERVE BANK OF PHILADELPHIA
1915

1916

WARRANTS
«/oo

CASH RESERVE

S 212.674,169.60

1917



CHART NO. 2.

311

DISTKICT NO. 3—PHILADELPHIA.

FEDERAL

LIABILITIES
ReseRve BANK OP

PHILADELPHIA
1916

1915

OTHER
LIABILITIES
7

IV

>\E/ABER DANK5'
DEPO51T5

MEMBER &ANK5

© 31,490,000

S 54.790 000

FEDERAL RESERVE MOTES

4 5 # NET

GOY'T. DEP.

MEMBER BANKS
DEPOSITS
48 %

, 674.169.60

1917




CHART NO. 3.

312

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
EARNINGS AND EXPENSES.

During the early part of the year, the greater portion of the earnings was obtained from the purchase of bankers' bills, but with
the placing of the Government loans, the member banks began borrowing freely and the amount of their borrowings increased rapidly
as the war financing progressed. For the purpose of reserving its
funds for discount purposes, the bank early in the year discontinued,
as far as possible, its purchases of municipal warrants.
Two dividends were declared during the year, one on June 30,
1917, amounting to $155,320.31, covering the period from July 1,
1915, to December 31, 1915, and the other on December 12, amounting to $466,829.62, covering a period of 18 months from January 1,
1916, to June 30, 1917.
The invested funds of the bank increased largely during the year,
and earnings increased proportionately. Current expenses remained
quite steady, the increase, considering the additional work done by
the bank, being small. As the number of Federal Eeserve notes
issued greatly increased, their cost became a correspondingly greater
item of expense. Net earnings reached their maximum in December,
when they were at the rate of 30.2 per cent on the paid-in capital.
In the following charts are shown the earnings and expenses by
months and the rate of net earnings on the paid-in capital.
Earnings and expenses.
Earnings.
Profits
from
From sale of Sun- Total
earninvest- United dry
ments. States profits. ings.
securities.

Expenses.
Transit
departNet
ExDepre- ment
availpenses Note cia- expense Total able for
in exexof ope- issues. tion cess of pense. diviration.
charges. net
dends.
service
charges.

$36, 836 $11,388 $170 $48,394 $11,354
January
565 45,091 11,228
42,145 2,380
February
1,130
44,794 11,580
43.664
March
874 47,812 11,303
46,938
April
2,521 72,046 12,251
69,525
May
1,770
78,704 12,373
76,934
June
1,026
87,023 12,753
85,997
July
403 90,314 15,036
89,911
August
1,048
95,853 14,991
94, 804
September
1,248
85,419 16,019
84,170
October
1,521 122,933 14,323
121,412
November
2,856 197,573 20,300
194, 717
December
Total, 1917. 987,057 13,768 15,132 1,015,959 163,510
Total, 1916. 376,898 11,170 20,137 * 417,939 164,983

$4,320
3,760
4,400
2,880
6,840
760
3,040
8,600
12,160
11,060
12,520

$13
13
17
23
27
61
74
12

i$l,804
131
309
2 260
144
817
976
1,755
4,133
2,386
4,153
5,769

$13,158
15,679
15,649
15, 443
15,288
20,043
14,506
19,854
27,751
30,626
29,610
38,601




8.4
$?5,236
29,411 7.3
29,145 6.5
32,369 7.5
56,758 12.7
58,661 13.5
72,517 16.3
70,461 15.7
68,102 15.7
54,792 12.2
93,323 20.0
158,972 30.2

70,340
240 i22,120 256,210 759,749
17,603 15,653 38,241 167,998 249,941

1 Includes $1,367.18, balance carried over from 1916.
2 Net service charges in excess of disbursements.
3 Includes $9,734 realized by conversion of United States bonds.

Annual
rate
of net
earnings.

12.2
4.78

313

DISTRICT NO. 3—PHILADELPHIA.

COMPARISON OF EARNINGS AND EXPENSES 1916 AND 1917
FEDERAL RESERVE BANK OF PHILADELPHIA
THOUSANDS
OF DOLLARS

TH0U5AND5

(AN FEB MAR APR M Y JUNE JULY AUG SEPT OCT NOV DEC 0FD0LLAR5

200

eoo

190

190

180

180

170

170

160

160

150

150

140

140

130

130

120

120

110

no

100

100
90
8b
70
60
50
40
30
20
10,

^ BLACK DOTTED LINE = 1 9 t i TOTAL EARNINGS
WHITE LIKE = 1916 EXPENSES




CHART N O . 4.

314

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Ea ta iiiftx <t )t d

cepcnscs.
1917

Bills discounted—members
Bills bought in open market
Investments:
United States bonds and notes
Warrants
Profits realized on United States securities.
Sundry profits

1916

$28,391
198,243

123,875
18,170
13,768
15,132

81,081
69,183
36,634
5,407

1,015,959

Total earnings.

$370,359
474,653

417,939

22,057
350
174

18, 362
306
749
280

46,206
42,615
8,311
3,590
1,080
1,361
163
1,700
9,070
2,803
326
1,284
4,700
1,426
7,311
233
8,702

39,100
52,398
6,012
3,220
820
895
558
2,000
9.250
1,231
12
11,552
3,415
1, 147
6,648
987
6,041

163,510
70,340

164,983
16,600
1,003
15,653
4,000

CURRENT EXPENSES.

Expenses of operation:
Assessraent account expenses, Federal Reserve Board
Federal Advisory Council (fees and traveling expenses)
Governors' conferences (including traveling expenses)
Federal Reserve Agents' conferences (including traveling expenses).
Salaries:
Bank officers
Clerical staff
Special officers and. watchmen
Directors' fees
Directors' per diem allowance
Directors' traveling expenses
Officers' and clerks' traveling expenses
Legal fees
Rent
Telephone
Telegraph
Postage and expressage
Insurance and premiums on fidelity bonds
Light, he at, and power
Printmgand stationery
Repairs and alterations
Allother expenses, not specified
Total expenses of operation
Cost of Federal reserve notes issued, including expressage
Miscellaneous charges account Federal reserve note issues
Depreciation of furniture and equipment
Disbursements of transit department in excess of net service charges received.
Total current expenses, exclusive of amortization charges, account organization expenses
Less disbursements of transit department
Current expenses of bank proper, exclusive of amortization charges, account organization expenses
Net earnings for year
Per cent of average paid-in capital.




240
22,120
256,210

202, 239
34,241

256,210

167,998

759,749
12.5

249,941
4.7

315

DISTBICT NO. 3—PHILADELPHIA.

ANNUAL RATE OF NET EARNINGS AVAILABLE FOR DIVIDENDS-^ AND 1917
FEDERAL RESERVE BANK OF PHILADELPHIA
PER
CENT

PER

J|P|A\|A|tt|J JIAI5IOINID J|P|M|A|M|J|J|A|S|O|N|D

40

40

•

38

CENT

38

36

36

34

34

32

32

30

30

28

28

26

26

24
2E
20
18
16

/

IT

/

/
/
;
/

24
22
20
18
16
14
12

1p
1C
lU

8

,^
r

/'

/
A

4

10
8

4

c
• MM

Z

A

HEAVY LINE= 6 % CUMULATIVE DIVIDEND REQUIRED 5 Y FEDERAL KB5ERYE: ACT
CHART N O . 5.

34365°—18




21

316

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
III.

RESERVE POSITION OF THE BANK.

The reserve position of the bank on the last Friday of each month
is shown below. The bank wishes to express its appreciation of the
cooperation of the member banks and State institutions for their services in strengthening its gold reserve. Upon the request of the bank,
they deposited their gold and accepted in exchange Federal Reserve notes, and thereby increased the loaning power of the bank.
RESERVE REQUIRED AND HELD AGAINST COMBINED
DEPOSIT AND NOTE LIABILITIES
FEDERAL RESERVE BAMK OP PHILADELPHIA
JAN FE6 MAR APR MAY JUNE JULY AUG 5EPT OCT NOY DEC




1 EXCESS RESERVE

REQUIRED RESERVES*.3 5 % AGAIN5T DEPOSITS
4 0 % AGAINST MOTES

CHART N O . 6.

DISTRICT NO. 3

317

PHILADELPHIA.

Reserve position on last Friday of each month during 1917.
[000's omitted.]
Liabilities (net).

Deposit.

January
February
Maich
April
May
June
July
August
September
October
November
December

Reserve percentage.

Reserves.

Total Lawful
gold
money,
Total
and
silver, Total
Note. liability. gold
and reserves
certifi- silver
cates. certificates.

§49,588 $15,537 $65,125 $55,654
67,809
47,648 20,161
52,100
74,878
50,697 24,181
61,110
29,088
79,102
50,034
54,983
89,254
56,568 32,686
57,804
94,361 39,703 134,064
98,993
82,256 41,257 123,783
98,577
72,214 43,502 115,716
78,945
79,143 51,026 130,169 100,365
81,946 59,612 141,558 108,510
60,103 78,414 144,517
98,106
94,363 93,642 188,005 119,544

$922
233
198
556
445
1,285
1,480
1,061
1,103
759
940
1,148

$56,576
52,333
61,308
55,539
58,249
100,278
100,057
80,006
101,468
109,269
99,046
120,693

Againsi net dedeposit liaGold
bilities.
against
Federal
Reserve
Gold innotes
actual
and
Gold. lawful circulation.
money.
Per ct. Perct.
78.1
80.0
73.5
74.0
76.0
76.5
57.3
58.5
48.2
49.0
69.2
70.8
80.0
81.5
64.8
65.0
75.7
76.5
73.5
74.5
67.4
68.8
64.8
66.0

Perct.
108.6
84.5
92.6
90.5
93.2
84.6
79.5
73.7
79.0
80.9
68.9
62.3

Against
combined
note
and
deposit
liabilities.
Per ct.
86.9
77.1
81.8
70.3
65.3
74.5
80.9
69.1
77.5
77.3
68.5
64.1

Total gold reserve includes gold in the hands of the Federal Reserve Agent on the last Friday of each
month.

IV. DISCOUNT RATES.

The discount rates remained unchanged from September 21, 1916,
to May 10, 1917, when the 15-day rate for commercial paper and
member bank collateral notes was reduced to 3 per cent. In order
that member banks might extend the necessary accommodation to
their customers in making payment for Liberty loan bonds, a special
rate of 3J per cent was established for the discount of paper and
member bank collateral notes having a maturity of not over 90 days
and secured by Liberty loan bonds or United States Treasury certificates of indebtedness.
The second Liberty loan having been issued at 4 per cent, a general readjustment of the discount rates seemed advisable, and on
November 26 the bank's rates for discount were advanced. The
changes are given herewith:




318

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Changes hi discount rates during calendar year 1911.
Rate in effectJan. 1, May 10, June 1, June 11 Nov. 2, Nov. 26, Nov. 30, Dec. 7, Jan. 1
1918.
1917.
1917.
1917.
1917.
1917.
1917.
1917.
1917.

Discounts maturing within
15 days, including member banks' collateral notes.
Paper including member
banks' collateral notes secured by United States
certificates of indebtedness or Liberty loan bonds
maturing within 15 davs
Paper maturing within 16 to
60 davs
Paper maturing within 61 to
90 days
Paper "secured by United
States certificates of indebtedness or Liberty loan
bonds maturing froni 16 to
90 days.. .
Agricultural and lire-stock
paper maturing after 90
days
Trade acceptances maturing
from 1 to 60 davs
Trade acceptances maturing
ing from 60 to 90 days
Commodity paper maturing
within 90 days

3

4

3

4

31.

3i-

4

4\

41

4

!

4

!

3-\

3

j
!

1
!

4

4
;

4&

r, i

31

:

1

4

3i
2,1
2

0

1 4
4

2

' " i

( )

Bankers' acceptances purchased at the market rate, subject to agreement.
Rate of 4 per cent for paper maturing 16 to 60 days effective Nov. 26.
Rates for commodity paper merged with those for commercial paper of corresponding maturities.

1
2

V. INVESTMENTS.
ANALYSIS OF EARNING ASSETS.

Operations during the early part of the year were on a relatively
small scale. The total loans and investments made during January
were only $3,940,771. In the month of May, when the war financing
began, there was a large increase in the amount of loans to member
banks and the total loans and investments for the month reached
$25,878,818. This amount was almost doubled in June. Operations
connected with the second Liberty loan again stimulated borrowings
during the latter months of the year, loans made in December amounting t<T $45,025,375.
Bills discounted for members during 1917 comprised 67.8 per cent
of the total operations, compared with 26 in 1916; bills bought comprised 26 per cent in 1917, compared with 62 per cent the previous
year.




DISTRICT NO. 3

319

PHILADELPHIA.

Loans and investments made by months.

Month.

Bills discounted—
members.

January
February
March
April
May
June
July
August
September
October
November
December
Total, 1917
Per cent of total
Total, 1916
...
Per cent increase or decrease, 1917 over 1916.

$565,122
1,682,222
3,009,293
2,385,421
20,445,040
42,724,903
22,175,858
18,170,441
18,934,001
16,819,730
31,478,602
45,025,375

Bills bought
United
in open
States
market.
securities.

Total.
Municipal
warrants.
1917

$1,268,322
$2,107,327
10,058,886
25,203
4,610,296 $4,598,260
2,575
5,268,807
40
126,667
5,404,559
29,219
3,441,475
11,472,425
7,450,793
317,700
125,938
6,056,282
10,200
4,565,180
10,000
19,479,626
33,500
5,998,140 13,866,050

$3,940,771
11,766,311
12,220,424
7,780,935
25,878,818
46,166,378
33,648,283
26,064,872
25,000,483
21,394,910
50,991,728
64,889,565

$3,012,800
1,948,800
6,542,700
5,296,500
6,562,000
7,329,200
7,318,400
4,476,100
7,571,500
7,469,300
9,462,600
18,781,700
85,771,600

223,416,008
67.8
$22,328,600

85,913,796
26.0
$53,122,000

18,792,250
5.7
$2,500,000

1,621,424
0.5
$7,823,000

329,743,478
100.0
$85,771,600

+900

+61

+650

-80

+284




1916

320

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

EARNING ASSETS-AVERAGE PAILY AMOUNT OR HAND-1317
FEDERAL "RESERVE BANK OP P H I L A D E L P H I A
JAN I F&B [MAR |APR [MAY [JUNE [JULY | AUG [SEPT| OCT |NOVJPEC




BILL5
DISCOUNTED
MEMBERS

C H A R T N O . 7.

DISTRICT NO. 3

321

PHILADELPHIA.

Average daily holdings of the several classes of earning assets for each month
and calendar year 1917.

Month,

Bills discounted—
members.

Bills bought.

Total.

United
States
securities.

Municipal
warrants.
1917

1916

January
February
March
April
May
June
July
August
September
October
November
December

$766,946
902,672
1,413,082
1.212,746
6', 285,864
12,394,010
13,852,692
10,540,930
12,656,277
9,958,904
15,756,446
33,346,433

$10,501,049
13,884,435
11,757,278
11,018,096
12,491,969
10,405,492
12,401,444
18,014,284
18,019,258
15,298,910
23,909,654
21,297,307

$2,735,129
2,016,107
2,147,330
6,597,280
6,597,300
6,363,966
3,097,300
3,107,558
3,666,040
3,740,400
3,495,700
7,654,381

$928,012
1,432,016
1,400,076
1,497,731
1,421,461
377,967
158,363
124,946
125,937
7,419
25,633
39,177

$14,931,136
18,235,230
16,717,766
20,325,853
26,796,594
29,541,435
29,509,799
31,787 718
34,467,512
29,005,633
43,187,433
62,337,298

$7,722,182
8,140,448
11,140,662
13,950, 526
16,719,120
17,120,064
18,119,076
17,357,542
17,728,745
18,881,183
17,972,828
22,239,398

Average for year Percent
Average for 1916..
Per cent increase or decrease, 1917 over 1916.

9,923,917
33.3
$1,005,376

14,916,598
50.2
$8,585,000

4,268,208
14.5
$3,325,005

628,228
2.0
$2,675,600

29,736,951
100.0
$15,590,981

15,590,981

+890

+74

+27

-76

+91

EARNINGS FROM INVESTMENTS.

The total earnings during January amounted to $36,836; these were
doubled in June, and in December amounted to $194,717. The month
of May marked a sudden increase in earnings from bills discounted
and loans to members, and in the month of June they exceeded, for
the first time, the earnings from bills bought.
Earnings from loans and investments for the calendar year 1917.
Bills
discounted,
members.

Month.

Bills
bought.

Total.

United
States
securities.

Municipal

warrants.
1917

1916

January
February...

March .
April
May . . .
June
JulyAugust .
September
October
November
December

$3,549
2,700
4,477
3,551
17,705
36,112
43,877
33,022
38,178
31,328
47,258
108,602

$24,499
31, 613
30,441
26,874
33,769
26,927
33,766
48,597
46,982
43,065
65,373
62,746

$6,981
4,693
5,359
13,028
14,391
12,862
7,828
7,858
9,225
9,738
8,696
23,216

$1,807
3,139
3,387
3,485
3,660
1,033
526
434
419
39
85
153

$36,836
42,145
43,664
46,938
69,525
76,934
85,997
89,911
94,804
84,170
121,412
194,717

$14,512
14,113
20,464
25,619
31,969
31,464
36,418
35,596
36,107
40,531
37,362
52,743

Total, 1917
Per cert of tota'
Total. 1916

370,359
37.7
28,394

474,653
48.0
198,243

123,875
12.5
81,130

' 18,170
1.8
69,183

987, 057
100.0
376,898

376,898

RATES OF EARNINGS FROM INVESTMENTS.

The annual rate of earnings on invested funds as a whole stood
at 2.90 per cent at the beginning of the year. With the exception of
a recession in the months of April and May, this rate has been



322

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

steadily increasing until the rate stood at 4.61 per cent in December.
Eeference to the following table shows that the largest rate of return
has been from bills discounted for members:
Calculated annual rates of earnings from loans and

investments.

I

Bills disBills
counted, bought
memin open
bers.
market.

Month.

January—
February...
March
April
May
June
July
August
September.
October
November.
December..

United
States
securities.

Municipal warrants.

Total.
1917

1916

0.0398
.0301
.0373
.0376
.0328
.0354
.0372
.0368
.0367
.0370
.0364
.0383

0.0299
.0303
.0293
.0248
.0248
.0245
.0297
.0297
.0306
.0306
.0302
.0357

0.0313
.0285
.0284
.0292
.0293
.0332
.0391
.0409
.0405
.0406
.0405
.0461

0.0290
.0301
.0307
.0290
.0298
.0316
.0343
.0333
.0334
.0341
.0342
.0461

0.0221
.0218
.0216
.0224
.0225
.0224
.0237
.0242
.0248
.0253
.0253
.0280

.0373
.0370

Average for 1917.
Average for 1916.

0.0279
.0296
.0304
.0396
.0396
.0314
.0320
.0317
.0317
.0331
.0332
.0346
.0318
.0231

.0290
.0256

.0289
.0258

.0332
.0242

.0242

DISTRIBUTION BY MATURITIES OF BILLS DISCOUNTED, ACCEPTANCES, AND
WARRANTS.

The following table shows the total amount of bills, notes, and warrants discounted and purchased by the bank during the year, distributed by maturities. Borrowings incident to the placing of war
loans were largely accomplished by obligations having a maturity of
15 days and less. The liquidity of the bank is indicated by the large
proportion of maturities within 15 days it has carried.
Bills

discounted,

acceptances, and warrants distributed
months for the calendar year 1911.
1-15 days.

January
February
March
April
May
Tune
July
August
September
October
November
December
Total, 1917




$247,937
1,307,784
2,667,902
2,208,142
18,545,006
39,039,795
19,000,985
24,596,145
17,175,492
11,962,123
17,859,511
32,125,650

16-30 days. 31-60 days. 61-90 davs.
$226,503
2,027,128
1,061,570
874,599
2,785,098
1,839,122
1,429,165
914,557
1,205,851
1,684,876
3,375,295
6,448,283

186,736,472 23,872,047

$850,008
3,329,446
1,055,263
911,719
1,480,976
1,785,845
1,819,689
1,983,641
1,637,175
1,257,125
9,067,163
3,886,982

by maturities

Over 90
days.

$1,086,242 $1,530,081
5,047,077
54,876
2,616,577
220,852
3,656,296
130,139
2,776,111
291,627
3,475,321
26,295
8,729,150
2,669,294
7,926,931
4,826,189
145,576
6,068,941
421,845
20,575,808
113,951
8,562,600

29,065,032 75,347,243

5,930,434

and

Total.
$3,940,771
11,766,311
7,622,164
7,780,895
25,878,818
46,166,378
33,648,283
35,747,172
24,990,283
21,394,910
50,991,728
51,023,515
320,951,228

DISTRICT NO. 3

PHILADELPHIA.

323

MATURITIES OP EARNING ASSETS (EXCLUSIVE Of UNITED STATES SECURITIES)
FEDERAL RESERVE BANK OP PHILADELPHIA




CHART N O . 8.

324

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The maturities of the bank's earning assets on the last Friday of
the year are shown in the following table:
Distribution
by maturities of paper and short-term investments held by the
Federal Reserve Bank and the Federal Reserve Agent at close of business
Dec. 28, 1917.
Maturities—
Within 15 From 16 to From 31 to From 61 to
30 days.
60 days.
90 days.
days.
1. Bills discounted—members:
Commodity paper
Trade acceptances
Member banks' collateral notes
All other

2,848,048

$11,000
48,782
i3,073,44i

2,606,095

$47,950
142,484
5,845,996
33,484,275

2,876,713

13,133,223

2,633,424

39,520,705

1,392,467
730,598

4,847,303
1,702,205

3,428,027
1,384,917

3,822,999
617,100

13,490,796
4,434,820

12,189

273,899

205,559

2,135,154

6,823,407

5,018,503

4,440,099

18,417,163

9,700,120

18,151,726

7,073,523

57,947,868

$74,658
5,845,996
14,956,692
20,877,346

Total
2. Acceptances bought:
Bankers' acceptancesForeign
Domestic
Dollar exchange bills
amended).. .
Trade acceptancesForeign
Domestic

(sec. 13,

Total
3. Rediscounts for other Federal reserve
banks
4 Short-term investments . . .

$10,000
17,329

.
491,547

10,000
23,022,500

Grand total
Amounts

$26,950
1,715

Total.

10,000

of the several classes of discounted paper held by the Federal
Bank and the Federal Reserve Agent on above date.
Secured.

Agricultural paper
Commercial and industrial paper
Member banks' collateral notes
All other, n. s

$16,514,814
5,845,996

Total bills discounted

22,360,810

Collateral Notes and Bills

Unsecured.

Reserve

Total.

$187,639
16,972,257

$187,639
33,487,071
5,845,996

17,159,896

39,520,706

Discounted—Members.

Borrowings by member banks, in the form of collateral notes, increased from $1,807,700 in April to $15,229,000 in May and $35,690,499 in June, when they were almost entirely secured by bills receivable. Each month from May showed an increase in the amount of
notes secured by United States bonds or Treasury certificates of indebtedness. In December they amounted to $9,550,501 and notes secured
by bills receivable amounted to $1,657,250. Discounts of bills receivable increased from $5,216,040 in May to $7,034,954 in June, reaching
the large total of $33,817,624 in December. The notes rediscounted



DISTRICT NO. 3

325

PHILADELPHIA.

ranged in size from a few dollars to $250,000. During 1916, earnings
from bills discounted and collateral notes were only 9 per cent of the
total, whereas in 1917 they were 38 per cent.
Bills discounted during each month by classes of paper; earnings from discounts and average rates of monthly and annual earnings for the calendar
year 1917.
Members-collateral

Earnings.

Trade Com- All other
accept- mod- discounts.
Secured j
ity
ances. paper.
TTb? A [otherwise
United
secured.
States
securities.
January
February
March
April
May
June
July
August
September
October
November
December

$880,000
680,650
1,691,650
2,110,000
5,532,500
3.002,500
9,209,425
9.696,501

$319,958
$230,000 $15,164
1,185,501
721
475, 000 21,7
1,374,563
730
1,605! 000 29,7
1,053,522
199
1,307! 700 24,1
5,190,282
758
14,349^ 000 25,7
6,956,061
343
35,009, 849 78,3
16,515, 320 36,874 $25,000 3,907,014
10,192, 990
26,200 5,747,092
3,303,022
10,082. 190
8,714,811184',
25,000 4,892,718
29,00014,384,533
7,755,505100,
22,950 33,695,673
1,511,250! 99,

Total.

Average
for
balance
month. Amount. Aver-

$565, 122 $766,946
$3,549;
1,682,222 902,672
2,700
3,009, 293 1,413,082
4,477
2,385,421 1,212,746
3,551
20,445, 040 6,285,864
17,705
42,724, 903 12', 394; 010 36,112
22,175, 85813,852,692
43,877
18,170, 44110,540,930
33,022
18,934, 00112,656,277
38,178
16,819, 730 9,958,904
31,328
31,478. 60215.756,446
47,258
45,025! 375 33; 346,433
108,602

Total, 1917..32,803.226 107,748,615 726,078 128,150 82,019,939 223,416,008 9,923,9171
8,609,532 22,328,600 1,005,376
13,644,2681 74,800
" " ~* "~" —
Total, 1916..

370,359;
28,395

0. 0398
.0301
.0373
.0376
.0328
.0354
.0372
.0368
.0367
.0370
. 0364
.0383
.0373
.0370

Amount of paper {exclusive of bankers' acceptances) discounted for member
banks, distributed by maturities as of date of discount; also number of banks
in district and banks accommodated during each month in the calendar
year 1917.
Member
banks
in district.
January
February...
March
April
May
June
July
August
September.
October
November..
December..

031
632
632
631
630!
628!
628!
628|
627!
627j
630;
636;

Total
Per cent of
total

Member
banks

accommodated.
14
18
17
16
43
79
64
67
76
79
116
139

Total.
15 days
or less.

$247,937
1,149,757
2,667,902
2,164,269
18,545,006
38,818,843
38,862,985
14,596,145
17,174,648
11,962,123
17,462,072
32,125,650

16-30
days.

31-60

days.

61-90
days.

$184,102 $12,080
$120,
88,294
231,028
205,
30,769
234,570
74,
26,477
53,762
137,
338,565 268,424
1,283,
1,674,570 1,640, 491 589,704
940,462 966,750
403,
256,472 923, 701
394.
717, 629 469,187
568,
"~">, 448
716,249
509,
708, 987 1,575,537 11,731,106
795,492
6,206,425|2,897,808! 3,

Over
90
days.

1917

S565,
1,682,
3,009,
2,385,
20,445,
42, 724,
22.175,
18,170,
18,934,
2,425 16,819,
900 31,478,
45,025,
$800
4,876
1,610
3,472
9, 529
1, 295
1,870

$242,773
109,247
212.010
922^ 680
1,590,123
945,730
1,380,125
739,515
546,346
307,303
3,415,021
11,917,727

175,777,337112,286,573 9,789,675j25,531,432 30,991 223,416,008 22,328,600
78.7

5.5

4.3

11.4

.1

100.0

ACCEPTANCES BOUGHT I N THE OPEN MARKET.

The total amount of bills bought in the open market amounted
to $85,913,796, compared with $53,122,000 the previous year. The




326

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

average rate of return for the year was 3.18 per cent compared with
2.31 per cent in 1916.
in the open

Acceptances

Bankers'
acceptances.

January
February
March
April
May
June
July
August
September
October
November
December

Trade
acceptances.

$2,095,200
9,974,000
4,610,296
5,288,809
5,355,600
3,208,600
11,208,800
7,007,900
5,950,470
4,565,180
18,786,857
5,944,691

Total, 1917.
Total, 1916.

$12,127

48,959
232,875
263,625
442,893
105,812
692,769
53,449

Earnings.
Average i
balance j
I
for month, j Amount. Averag
rate.

Total.

$2,107,327 $10,501,049
10,058,886
13,884,435
4,610,296
11,757,278
5,268,807
11,018,096
5,404,, 559 12,491,969
3,441,475 10,405,492
11,472,425 12,401,444
18,014,284
7,450,793
18,019,258
6,056,282
15,298,910
4,565,180
19,479,626 23,909,654
21,297,307
5,998,140

83,976,401 j 1,937,395 ! 85,913,796
51,769,000 | 1,353,000 | 53,122,000

Bill a bomjht, distributed

14,916,598
8,585,000

$24,499
31,613
30,441
26,874
33,769
26,927
33,766
48,597
46,982
43,065
65,373
62,746

0.0279
.0296
• .0304
.0306
.0396
.0314
.0320
.0317
.0317
.0331
. 0332
.0346

474,653
198,243

.0318
.0231

by maturities.
Total.

ays

January
February...
March
April
May
June
July
August
September..
October
November..
December..

$106,300
1,821,861
987,128
737,158
1,501,582
164,552
1,025,374
520,434
637,528
1,175,391
2,666,308
241,858

$158,027
43,873
220,952
138,000
844
"397," 439

Total, 1917
Per cent
Total, 1916
1

-131~

959,135 I 11,585,474
1.1
13.5
110,322.000

Within 30 days.

61-90 days.

Over 90
1917

1916

$1,074,162
$260,959
4,933,580
50,000
216,667
2,585,808
3,629,819
2,507,687
252,879
2,885,617
25,000
6; 762,400 2,667,424
5,003,230
325,898
4,357,002
141,362
2,429,493
419,420
8,844,702
113,051
4,767,108

$2,107,327
10,058,886
4,610,296
5,268,807
5,404,559
3,441,475
11,472,425
7,450,793
6,056,282
4,565,180
19,479,626
5,998,140

$194,000
709,000
4,759,000
3,990,000
4,109,000
5,766,000
5,049,000
3,661,000
6,591,000
5,962,000
5,670,000
6,662,000

19,115,919 49,780,608 4,472,660
58.0
5. 2
22.2
11,566,000 231,324,000 :

85,913,796
100.0
53,122,000

53,122,000

$665,906
3,095,418
820,693
857,957
1,142,411
145,354
879, 227
1,601,231
919,546
540,876
7,458,126
989,174

2

Sixty days and over.

UNITED STATES SECURITIES.

Early in the year the Federal Reserve Board announced that
Federal Reserve Banks would not be required to purchase during the
year more than $15,000,000 United States 2 per cent bonds from,
member banks, and such bonds would have to be offered to the Treasury Department on or before March 21. The aggregate of bonds
offered amounted to $10,877,500, of which amount $1,098,200 was
allotted to the Federal Reserve Bank and paid for on April 1. Sub-




327

DISTRICT NO. 3—PHILADELPHIA.

sequently $549,200 was converted into United States 3 per cent bonds,
and $549,000 into one-year 3 per cent notes.
In connection with the Government financing, the bank has from
time to time taken over blocks of bonds and certificates of indebtedness, which were disposed of later. Income from this class of investment amounted to $123,875. The average rate of return was 2.90
per cent. Profits realized from the sale of United States securities
amounted to $13,768. The following tables show the holdings of
United States securities:
United States

securities.

Amount
purchased.

Income.

Average
balance.

Amount.
January
February..
March
April
May
June
July.
August
September.
October —
November.
December..

Rate

13,866,050

$2,735,129
2,016,107
2,147,330
6,597,280
6,597,300
6,363,966
3,097,300
3,107,558
3,666,040
3,740,400
3,495,700
7,654,381

$6,981
4,693
5,359
13,028
14,391
12,862
7,828
7,858
9,225
9,738
8,696
23,216

0.0299
. 0303
.0293
.0248
.0248
.0245
.0297
.0297
.0306
.0306
.0302
.0357

18,792,250
2,500,000

4,268,208
3,574,000

123,875
81,130

.0290
.0256

§4,598,200
40

317,700
10,200

Total 1917 .
Total 1916 .

United States securities held on last day of each month.
United States bonds
with
circulation
privilege.

2 per cent 2 per cent
consoli- Panama,
dated of 1936-1938.
1930.

January
February
March
April
May
June .. .
July
August
September
October..
November
December.

United States bonds without circulation privilege.

United States Treasury certificates of 3per cent
indebtedness.
conver- 3 per cent
sion
one-year
notes.
bonds,
2 per cent. 3-4 per 1946-47.
cent.
$137,000

$1,092,000




$6,260
100
100
100
100
100
100
100
100
100

$3,500,000
3,500,000
3,500,000
I
i

$658,000
577,000
205,000

549,200
549,200
549,200
549,200
549,200
549,200
549,200
549,200
549,200

Liberty
• loan.

$1,999,000
1,999,000
1,999,000
2,548,000
2,548,000
2,548,000
2,548,000
2,548,000 $317,700
2,548,000 632,500
2,548,000
1,100
2,548,000
1,100
2,548,000 6,552,650

Total,
1917.

$2,135,000
1,999,000
6,597,260
6,597,300
6,597,300
3,097,300
3,097,300
3,415,000
4,387,800
3,675,400
3,303,400
9,649,950

328

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
MUNICIPAL WARRANTS.

Investments in municipal warrants have been very much less than
during the previous year. It became apparent early in the year that
there would be abundant investment for the bank's funds in rediscounting and open-market operations, and the purchase of municipal
warrants was discouraged.
Municipal

warrants.
Earnings.
Average
balance.

City
Other
warrants. warrants.
January
February
March
April .
May
June
July
August .
September
October
November
December
Totals 1917
Totals 1916

$1,268,322
25,203
2,575
126,667
25,219

$4,000

125,938

1,573,924

Warrant a putvhased

10,000
33,500
1,621,424
7,823,000

(luring 1917, distributed

$1,807
3,139
3,387
3,485
3,660
1,033
526
434
419
39
85
153

0.0313
.0285
.0284
.0292
.0293
.0332
.0391
.0409
.0405
.0406
.0405
.0461

628,228
2,675,600

125,938

47,500

Rate.

$928,012
1,432,016
1,400,076
1,497,731
1,421,461
377,967
158,363
124,946
125,937
7,419
25,633
39,177

$1,268,322
25,203
2,575
126,667
29,219

10,000
33,500

Amount.

18,170
69,183

.0289
.0258

by

maturities.
Total.

60 days.

January...
February
March
April

May

j une
Julv
August.
September
October
November
December
Total.




90 days.

Over 90

days.

$1,268,322

. . . . .
$25,203
2 575

126,667
29,219

. . . .
$125 938

$1,268,322
25,203
2,575
126,667
29,219
125,900
10,000
33,500

10,000
33 500
159,438

1917

37,778

1,424,208

1,621,424

1916.
$1,576,000
630,600
855,700
100,000
862,800
617,600
889,800
75,600
434,200
1,200,300
378,200
202,200
7,823,000

DISTRICT NO. 3
VI.

329

PHILADELPHIA.

FEDERAL RESERVE NOTE ISSUES.

The comparative statement of condition of the Federal Reserve
agent's accounts follows:
Comparative statement

of the Federal Reserve Agent1 s accounts.
Dec. 31,
1917.

Tec. 30,
1916.

Deo. 31,
1915.

$10,160,000

$7,260,000
17,069,590

$2,680,000
9,160,000

6,150,410
1,300,000

640,000

3,730,000

4,160,000

RESOURCES.

97,325,755
Federal Reserve notes outstanding
Federal Reserve notes sent to Comptroller of Currency for destruction
.
.
17,994,245
34,855,506
Bills to secure Federal Reserve notes
Funds to redeem Federal Reserve notes:
Gold coin and certificates on hand
4,220,000
Lawful money on hand
4,966,755
Gold redemption fund
54,759,000
Gold with Federal Reserve Board
Total
63,945,755
224,281,261
Total resources...

859,590
11,180,000

5,000,000

15,769,590

9,160,000

47,549,500

21,640,000

30,480,000
1,300,000
15,769,590

12,480,000

47,549,500

21,640.000

LIABILITIES.

Federal Reserve notes received from Comptroller of Currency
(gross amount)
125,480,000
Collateral received from Federal Reserve Bank
34,855,506
63,945,755
Provision for redemption of Federal Reserve notes
Total liabilities.




224,281,261

9,160,000

330

ANNUAL REPOET OF THE FEDERAL RESERVE BOARD.

FEDERAL RESERVE NOTES ISSUED BY FEDERAL RESERVE AGENT
FEDERAL RESERVE BANK OP PHILADELPHIA
MILLIONS
OP DOLLARS

MILLIONS

DFD0LLAR5

140

HO

130

130

120

120

110

110

100

100

90

90

80

80

70

70

60

60

50

50

40

40

30

30

EO

20

10

10
DEC 31.1915 .
N O T E S CANCELLED
A N D DESTROYED




DEC 30.1916
N O T E S IN HANDS
OF THE FEDERAL
RESERVE AGENT
CHABT No. 9.

DEC 31.1917
. NOTES 15SUED TO
BANK BY THE FEDERAL
B&5ERYE AGEKT.

DISTRICT NO. 3

331

PHILADELPHIA.

The demand for currency has been heavy, due to the abnormal
activity in all lines of business. The act of the Pennsylvania Legislature, making Federal Eeserve notes a part of the lawful reserve
of State institutions, effected the exchange of a considerable amount
of gold held by such institutions for Federal Eeserve notes. The
amendment to the Federal Eeserve Act, depriving vault cash of its
former character of bank reserve, and requiring that all member bank
reserves be carried with the Federal Eeserve Bank exclusively, also
induced the member banks to exchange their gold for Federal Eeserve notes.
ISSUE OF NOTES BY MONTHS.

The amount of notes in circulation increased steadily, as shown by
the following table:
Federal reserve notes issued and in actual circulation.

Outstandat begining of
month.

January...
February..
March
April
May
June
July
August
September.
October...
November.
December.

Issued
during
month.

$17,069,590
16,828,690 $6,060,000
22,103,470 4,040,000
25,710,270 5,280,000
30,432,570 4,400,000
34,303,070 8,400,000
41,905,670 1,000,000
42,203,960 4,100,000
45,472,060 10,700,000
53,318,135 14,700,000
65,528,385 17,000,000
81,354,665 17,920,000

34365°




OutstandEedeemed. ing at end
of month.

Held by
Federal
Reserve
Bank at
end of
month.

In actual circulation
at end of month.

1917

1916

$240,900 $16,828,690 $741,595 $16,087,095 $8,098,555
785,220 22,103,470 1,253,975 20,849,495 7,485,050
433,200 25,710,270 1,372,835 24,337,435 7,062,455
557,700 30,432,570 1,335,445 29,097,125 6,655,055
529", 500 34,303,070 1,123,155 33,179,915 6,156,380
797,400 41,905,670 2.116,850 39,888,820 6,679,130
846,920 41,351,040 7,322,000
701,710 42,203,960
831,900 45,472,060 2,269,400 43,202,660 6,920,010
53,318,135 2,291,625 51,026,510 7,134,080
1,353,925
1,698,250 65,528,385 4,415,280 61,113,105 8,047,290
1,173,720 81,354,665 2,930,265 78,424,400 12,601,630
1,948,910 97,325,755 4,348,590 92,977,165 16,898,450

332

ANNUAL REPOET OF THE FEDERAL RESERVE BOARD.

GOLD AMD COLLATERAL HELD BY FEDERAL" RESERVE AGENT
A3 SECURITY FOR FEDERAL RESERVE NOTES OUTSTANDING
FEDERAL RESERV6 BANK-OP PHILADELPHIA

JAN FEB WAR APR MYUUNCUULY AUC 5CPT OCT NOV DEC

FEDERAL RESERVE N0TE3 OUTSTANDING = 1 0 0 %
CHART N O . 10.
DENOMINATIONS.

Notes of the denominations of $10 and $20 were especially in demand and were issued in large quantities, the following table showing the amount of each denomination issued:
Denominations of Federal Reserve notes issued during 1917.
Total.
Fives.
January..
February
March
April. .
May

Tens.

Twenties.

Fifties.

1917

$100,000 $2,280,000 $3,680,000
360 000 2 400 000 1 280'000
480,000 2,080,000 2,720,000
200,000 1,080,000 2,720,000
1 160,000 2,680,000 3 360,000
$400, 000
480,000
520,000
200, 000
420 000 1 160,000 1 920,000
1 720 000 4,140,000 3,600,000
890, 000
9 , 300,000
4,680,000 4,720,000 1,800,000
1 , 200,000 4,800,000 6,800,000 1,000. 000
3 ,160,000 4,920,000 7,040,000 1,600, 000

June
July
August
September
. .
October....
November..
December...
Total 1017
11,100,000
Per cent of total
11 9
5 , 752,700
Total 1916



Hundreds.

30,794,000 38,320,000
40 9
32 8
3,974,800 4,430,200

5,890, 000
6 3

1916
$325,000

400 ,000
350 ,000
1,200 ,000
3,200 000
1,200 ,000

$6,060, 000
4,040, 000
5,280, 000
4,400, 000
8,400, 000
1,000, 000
4,100, 000
10,700, 000
14,700, 000
17,000, 000
17,920, 000

7,550 ,000
8 1

93,600, 000
100

$400 ,000
800 ,000

1,472,700
900,000
680,000
1,360,000
6,080,000
3,340,000

14, .157,700

DISTRICT NO. 3
Interdistrict

333

PHILADELPHIA.

movement of notes.

In the following table are shown the amounts of the bank's own
Federal Reserve notes received back from other Federal Reserve
Banks, also amounts of notes of other Federal Reserve Banks returned to the latter by this bank during 1917:
Interdistrict

movement of Federal Reserve notes.
Received
from—

'

Atlanta..

C h i c a g o . .

.

St. Louis
Minneapolis

. . .

City

. . .

Dallas
San Francisco

.
....

.

.

. . .

Total 1917..
Total 1916

VII.

.

$634,700
5,876,300
258,495
323,920
150,650
357,500
90,600
17,000
11,600
314,450
31,575

$388,000
11,553,902
883,000
798,000
311,000
419,000
113,000
122', 000
129,000
101, 000
163,000

8,066,790
2,110,175

Boston.
New York
Cleveland.
Richmond

"Kansas

Returned
to—

14,960,902
4,411,975

INTERNAL MANAGEMENT OF THE BANK.

Directors Federal Reserve Bank of Philadelphia.
[Richard L. Austin, chairman and Federal Reserve agent. H. B. Thompson, deputy chairman.
Charles J. Rhoads, governor.]
Class.
Group ]
Group S
Group c
{Group 1
Group 5
Group I

{

Name.

Residence.

Term expires.

Charles J. Rhoads
William H. Peck
M. J. Murphy.
A. B. Johnson
E. S. Stuart
G. W. F. Gaunt..
r
Richard L. Austin
H. B. Thompson l
J. Davis Brodhead

Philadelphia, P a . .
Scranton, Pa
Clarke Green, Pa..
Philadelphia, Pa..
.do..
MullicaHill, N. J .
Philadelphia, Pa..
Wilmington, Del..
Bethlehem, Pa

Dec. 31,1917
Dec. 31,1918
Dec. 31,1919
Do.
Dec. 31,1917
Dec. 31,1918
Dec. 31,1917
Dec. 31,1919
Dec. 31,1918

1 Resigned Dec. 12, 1917.

DIRECTORS AND OFFICERS.

Mr. Levi L. Rue, president of the Philadelphia National Bank,
was reelected as a member of the Federal Advisory Council to represent the Third Federal Reserve District.
In accordance with the amendment to the Federal Reserve Act
approved June 21, Mr. H. B. Thompson became deputy chairman
instead of deputy chairman and deputy Federal Reserve Agent.
The office of assistant Federal Reserve Agent having been created,
Mr. Arthur E. Post, who had acted as assistant to the Federal Reserve Agent, was appointed to that position. On August 1 Mr.
Frank M. Hardt, cashier, was elected deputy governor and cashier,
and on July 3 Mr. C. A. Mcllhenny, then an officer of the Bank of




334

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

North America, was elected an assistant cashier, and on December 19 Mr. W. J. Davis was also elected an assistant cashier. These
additions to the officers' staff were made necessary by the great in-,
crease in the business of this institution.
The board of directors continued without change during the year
until December 12, wiien the Hon. J. Davis Brodhead felt compelled to resign because of having accepted a position with the
Custodian of Alien Property.
The regular elections for a class A and a class B director were
held from November 20 to December 4. Mr. Charles J. Ehoads,
governor of the bank, though eligible for reelection as a class A director, declined to be a candidate, as he believed it to be for the
best interests of the bank to have elected as class A directors men
who are actively connected with member banks and are thus in a
position to represent the stockholders. As the result of the election,
Joseph Wayne, jr., w7as elected a class A director by group 1 banks
and Hon. Edwin S. Stuart was reelected a class B director by group
2 banks. The votes cast were as follows:
GROUP 1, CLASS A.
Candidates.
William Bromor, vice president National Bank of Schwenksville, Schwenksville, Pa
Allen P. Perley, president West Branch National Bank, Williamsport, Pa
Joseph Wayne, jr., president Girard National Bank, Philadelphia

First Socond Third
choice. choice. choice.
11
128

128
14

142

GROUP 2, CLASS B.
Robert Brown, manufacturer, Stroudsburg, Pa
John C. Ogdcn, general superintendent Cambria Steel Co., Johnstown, Pa...
Edwin S. Stuart, merchant, Philadelphia, Pa

52
19
2

At the close of the year the bank had 6 officers and 186 clerks, a
total of 192, as compared with, 4 officers and 85 clerks at the end of
the previous year.
Of this increase in the clerical force, the greatest number has been
added to the transit department. The wTork of the teller's department has become heavy, due to the large amount of cash handled
daily, and it was necessary to add 15 note counters to the force there.
The issues of Liberty bonds have added greatly to the wrork of the
fiscal agent's department. Its force was increased in order to handle
the work incident to the payment of interest on Government bonds,
the payment of Government checks, the handling of war-savings
stamps, etc. The force of clerks in this department will probably
have to be further increased.
The war has thrown much work on the Federal reserve bank,
which it had neither the clerical force nor the equipment to properly




335

DISTRICT JSTO. 3—PHILADELPHIA.

handle. The quarters of the bank are inadequate and the work was
conducted under the greatest handicaps. Notwithstanding these
difficulties the officers and clerks have labored without complaint,
being on duty long hours, frequently working well into the night—
ene department working 40 hours at one stretch—in order to complete in time the figures in connection with the bond issues.
It is with great pleasure and due appreciation of these services
that this acknowledgment is made of the faithful, efficient, and selfsacrificing work of the officers and clerks of this bank during the
year.
TRANSIT DEPARTMENT.

The check-collection system inaugurated in May, 1916, has been
expanded and improved and is becoming of daily increasing service to member banks. The average number of checks handled in
the month of January was 9,104, and their value was $7,038,420.
The average number handled in December was 15,762, and the value
$18,037,952, an increase of 73 per cent in the number and of 156 per
cent in the value of items handled during the last and first months of
the year.
Of the 427 nonmember banks in the district, 310 are now taking
items for remittance at par, a gain for the year of 78, and we have
hopes that before long all nonmember banks will be included in
our list.
There are 65 clerks in the transit department, an increase for the
year of 25. The cost of the department, including charges on the
shipments of money, was $101,701. Of this amount $79,582 was reimbursed through the service charge of 1J cents per item, leaving a
balance of $22,120 of the cost of the department to be borne by
the bank.
Transit department

operations.

Expenses of Depreciation
operation. charges.

January
February...
March
April
May
June
July
August
September.
October....
November..
December..

Service
charges.

Disbursements in
exesss oi
service
charges.

$6,372
5,440
6,361
5,890
5,836
6,825
7,261
8,917
9,284
9,836
10,244
13,249

1

$308
385
392
393
370
395
398
408
409
425
426
507

$6,680
5,825
6,753
6,283
6,206
7,220
7,659
9,325
9,693
10,261
10,670
13,756

$6,243
5,694
6,444
6,543
6,062
6,403
6,683
7,570
5,560
7,875
6,518
7,987

$437
131
309
1260
144
817
976
1,755
4,133
2,386
4,152
5,769

95,515
34,241

Total, 1917.
Total, 1916.




Total
expense.

6,185
5,000

101,701
39,241

79,582

22,120
4,000

Service charges in excess of disbursements.

OOft
OOO

ANNUAL ItEPOBT OF THE FEDERAL RESERVE BOARD.

TRANSIT DEPARTMENT OPERATIONS
AVERAGE NUMBER OP ITEMS HANDLED,DAILY
FEDERAL "R&S£RV£ 5ANK Or PHILADELPHIA
MUMbER
OF

1917

OP
;ULY AUC SEPT OCT ROY DEC JAN FEb /AARjAPR KAY JUNE|JULY AUG[S£?T J OCT[NOV|D&C ITEMS

KfcY

50,000
45,000
40,000

IT&IAS
IT & n S
lT£ttS
IT£MS

50,000

OH ALL 3ANKS
ON BANKS 1MTH15 DISTRICT
OR PHILADELPHIA 5ANK5
OKI BANKS IN OTHER DISTRICTS

45,000

A

40,00,0

35,000

35.000

30.000

30s000

25.000

E5.000

so.aoo

20,000

15.000

15 000

10,000

10,000

5,000

5,000




CHART NO. 11.

DISTRICT KO. 3

337

PHILADELPHIA.

Total number and amount of checks handled monthly and during the calendar
pear 1917.
On country banks in this
district.

On Philadelphia banks.
Number.

Number.

Amount.

Amount.

1917.

January

236,705
209,967
258,170
271,590
294,068
297,818
325,518
328,261
293,780
367,892
370,357
394,055

$182,998,925
199,859,376
246,290,587
255,466,069
292,196,057
344,434,393
302,315,872
327,342,255
284,939,508
397,418,830
419,819,276
450,948,801

404,966
349,088
445,015
375,565
435,497
429,996
453,704
497,679
431,250
514,031
476,590
526,329

$52,170,483
46,345, 061
54,268,671
56,344, 330
62, 575, 6b i
63? 741, 041
67,128, 277
68,456, 648
68,090, 876
80,355,151
76,022.606
83,281,933

3,648,181
1,121,179

3,704,029,949
1,301,401,864

5,339,710
2,679,110

778,780,708
312,245,482

February..
March
April
May
Juiie
July
August
September.
October
November.
December..
Total, 1917.
Total, 1916.

On banks in other reserve
cities.
Number.

Total.

Amount.

Number.

Amount.

1917.
January
February
March
April
May
June
July
August
September
October
November
December

157,938
143,180
167,366
163,116
178,405
178,243
199,866
203,435
203,538
257,420
249,609
262,265

799,609
702,235
870,551
810,271
907,970
906,057
979,088
1,029,375
928,568
1,139,343
1,096,556
1,182,649

2,364,381
670,454

Total, 1917
Total, 1916

$153,902,963
140,741,052
178,894,749
186,862,433
221,114,500
244,368,130
207,465,530
223,313,333
239,951,955
289,379,806
278,349,990
299,336,688
2,663,681,129
999,204,762

11,352,272
4,470,743

$389,072,371
386,945, 489
479,454,007
498,672, 832
575,886,188
652,543,564
576,909, 679
619,112, 236
592,982, 339
767,153,787
774,191, 872
833,567,422
7,146,491,786
2,612,852,108

Average number of items handled dally.
On country banks
in this district.

On Philadelphia
banks.

Amount.

On banks in other
reserve cities.

Total.

Number.

Amount.

Number.

1917.
January
February
March
April
May.
June
July
August...
September...
October
November
December

9,104
9,544
9,562
11,316
11,310
11,454
13,021
12,157
12,241
14,150
15,432
15,762

$7,038,420
9,084,517
9,121,874
10,644,420
11,238,310
13,247,477
12,092 635
12,123,787
11,872,479
15,285,340
17,492,470
18,037,952

15,576
15,868
16,482
15,649
16,750
16,538
18,148
18,433
17,969
19,770
19,858
21,053

$2,006,557
2,106,594
2,009,951
2,347,680
2,406,755
2,451,578
2,685,131
2,535,431
2,837,120
3,090,582
3,167,609
3,331,277

6,074
6,508
6,199
6,796
6,862
6,856
7,995
7,535
8,480
9,901
10,400
10,491

$5,919,345
6,397,320
6,625,731
7,785,935
8,504,404
9,398,774
8,298,621
8,270,864
9,997,998
11,129,993
11,597,916
11,973,467

30,754
31,920
32,243
33,761
34,922
34,848
39,164
38,125
38,690
43,821
45,690
47,306

$14,964,322
17,588,431
17,757,556
20,778,035
22,149,469
25,097,829
23,076,387
22,930,082
24,707,597
29,505,915
32,257,995
33,342,696

Total, 1917.

12,087

12,273,306

17,674

2,581,355

7,481

8,825,030

37,603

23,679,692

Number.

Amount.

Number.

Amount.

GOLD SETTLEMENT FUND.

The gold settlement fund lias been of great use in settling balances
Banks and large amounts were cleared

between
 Federal Reserve


338

ANNUAL EEPOET OF THE FEDEEAL EESEEVE BOARD.

weekly. The following table shows the summary of operations and
the net trains and losses:
Gold settlement

operations.

000's omitted.)

Period covered.

Dec. 22, 1916, to
Jan. 25, 1917
Jan. 26 to Feb. 23,
1917
Feb. 24 to Mar. 22,
1917
Mar. 23 to Apr. 19,
1917
Apr. 20 to May 17,
1917
May 18 to June 21,
1917
June 22 to July 19,
1917
July 20 to Aug. 23,
1917
Aug. 24 to Sept.
19, 1917
Sept. 20 to Oct.
18, 1917
Oct. 19 to Nov.
21, 1917
Nov. 22 to Dec.
20, 1917

Total of weekly statements for Balance
Gold.
Transfer.
period.
Balance
after
last
close
stateof busiTotal
ment. With- Depos- Debit. Credit. Net
Total
Net ness for
drawn. ited.
debits. debits. credits. credits. period.

3,932

185,411

195,564

10,523

158,109

154,297

6,711 ' 10,855

159,994

169,190

9,196

17,441

177,742

184,147

9,167

18,071

199,413

212,116

15,622

4,854

257,653

310,882

53,229

23,433

15,105

11,300

15,117

1,000

550

10,855

4,300

1,690

17,441

6,699

300

552

1,586

18,071

4,120

4,500

26,300

2,919

4,854

3,200

550

32,000

140

1,885

3,044

14,115

15,117

23,433

1,520

19,000

9,147

207,104

220,023

22,066

15,972

15,972

2,250

20, 761 43,000

4,751

278,639

314,023

40,135

26,867

26,867

2,150

27,383

38,131

11,025

234,807

248,211

24,429

27,376

27,376

32,800

30,740

7,000

1,698

253,398

264,029

12,329

41,947

41,947

59,950

44,965

79,000

357,168

442,717

85,549

33,511

33,511

69,570

73,015

45,000

317,400

337,281

29,471

12,837

13,000

1,000

9,590

COLLECTION DEPARTMENT.

On September 1, 1917, a collection department was established.
Items received for the first four months were as follows:
Number
of items
handled.
September
October.
November
December

80
154
186
242

Amount.

$89,239
367,246
664,065
1,143,353

Number
paid.
74
146
174
219

Amount.

$79,553
363,907
661,604
1,119,912

Number
returned. Amount.
»
8
12
23

$8,836
3,339
2,461
23,440

The greater proportion of this business comes through other Federal Reserve Banks and consists of drafts with bills of lading attached, coupons, notes, and checks on which special advice of payment is requested.
The only charges made have been our service charge of 10 cents
per item, none of the remitting or crediting banks having made any
charge for exchange during the period mentioned in the above table.
GOVERNMENT DEPOSITS.

The work in connection with the Government department has
grown considerably. During the year 375,276 Government checks,
amounting to $216,604,043 were handled, 5 clerks being regularly
assigned to this work.




DISTRICT NO. C
VIII.

GENERAL

BANKING

339

PHILADELPHIA.

CONDITIONS IN

THE DISTRICT

AND RELA-

TIONS WITH MEMBER BANKS.

On January 1, 1917, there were G31 member banks in the district.
During the year 4 national banks were organized; 6 went out of existence, and 7 State institutions joined the system, making a total membership of 636.
We give below a table showing the relation of the Third Federal
Reserve District compared with the districts of the other banks. I t
is interesting to note that while the area of the district is c:ily 1.2
per cent of the entire area of the country, the population is 6.4 pet
cent and the resources of the member national banks 8.1 per cent.
Federal Reserve
district.

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
.
St. Louis
Minneapolis..
Kansas City
Dallas . .
San Francisco
Total . .

. .

Population.

Per
cent.

Square
miles.

Per
cent.

Total
resources of
member
banks (000
omitted).

Number
of
member
national
banks.

Per
cent.

6,963,987
13,111,816
6,632,611
9,314,762
9,278,461
10,055, 640
14,154,175
9,291,698
5,164,426
7,404,443
5,637, 290
6,631,164

6.7
12.7
6.4
9.0
9.0
9.7
13.7
9.0
4.9
7.1
5.4
6.4

61,345
51,890
36,844
73,310
152,314
247, 209
190, 513
194, 767
414,074
473,611
394,161
683, 852

2.0
1.8
1.2
2.5
5.1
8.3
6.4
6.5
13.8
15.8
13.6
23.0

$1,144,154
4,478,494
1,338,811
1, 719, 441
825,670
539, 923
2,131,874
633,725
784, 745
1,161,353
601,160
1,177, 578

6.9
27.1
8.1
10.4
5.0
3.3
12.9
3.8
4.7
7.0
3.7
7.1

388
624
627
751
514
376
1,036
466
747
949
622
534

103,640,473

100.0

2,973,890

100.0

16,536,928

100.0

7,634

Per
cent.

5.1
8 2
8.3
9.8
6.7
4.8
13.5
6.1
9.7
12.7
8.1
7.0
100.0

BANKING POWER OF DISTRICT.

The total banking resources of the district reached a new record
in 1917. The following figures include national banks (as of Sept.
11), State banks, and trust companies:
Banking institutions—District

No. 3.

1000's omitted.]

Capital.

Pennsylvania:
National banks (535)
State institutions (301 reporting)
Total (836)
New Jersey:
National banks (72)
. .
State institutions (40)
Total (112)
Delaware:
National banks (22)
State institutions (27)
Total (49)
Totals:
National banks (629) . .
State institutions (368)
Total (997)




Surplus.

Undivided
profits .

Individual deposits.

Total
Bank
deposits. resources.

$68,877
73,691

$90,385
96,609

$25,053
45,781

$789,138
604,473

$163,938 $1,209,999
70,767
981,010

142,568

186,994

70,834

1,393,611

234,705

2,191,009

6,242
5,336

7,035
5,038

3,017
2,007

82,649
56,197

1,525
959

109,515
71,563

11,578

12,073

6,024

138,846

2,484

181,078

1,589
3,687

1,617
3,933

696
1,962

13,269
44,100

812
874

19,297
56,091

5,276

5,550

2,658

57,369

1,686

75,338

76,708
82,714

99,037
105,580

28,766
49,750

885,056
704,770

166,175
72,600

1,338,811
1,108,664

159,422

204,617

78,516

1,589,826

238,775

2,447,474

340

A1N T KT T AL REPORT OF T H E

FEDERAL RESERVE BOABD.

COMBINED STATEMENT OF CONDITION OF MEMBER

BANKS.

A comparative statement of condition of member banks is given in
the following; table:
Date of comptroller's call.
Sept. 12,1914.1

Sept. 2,1915.

Sept. 12,1916. Sept. 11,1917

$518,774,000
60,843,000
156,673.000
207,188,000

$527,799,000
61,438,000
198,582,000
267,289,000

$597,371,000
58,812,000
244,462,000
295,338,000

$647,542,000
91,707,000
283,356,000
317,256,000

1,003,478,000

1,055,108,000

1,195,983,000

1,338,811,000

76, 875,000
98, 761,000
20, 759,000
64, 197,000
570, 342,000
159, 796,000
12, 748,000

77,248,000
98,150,000
21,100,000
58,278,000
640,860,000
149,604,000
9,868,000

76,814,000
. 97,304,000
24,460,000
56,291,000
759,894,000
166,926,000
14,294,000

76,708,000
99,037,000
28,766,000
55,596,000
877,549,000
166,175,000
34,980,000

1,003,478,000

1,055,108,000

1,195,983,000

1,338,811,000

RESOURCES.

Loans and discounts
United States bonds
Other bonds, securities, ate.
All other resources
Total.
LIABILITIES.

Capital stock
Surplus
Undivided profits
National-bank notes outstanding.
Individual deposits
Bank deposits
All other liabilities
Total.
1

Thefiguresfor 1914 include only those banks now in this district.
RESERVE CONDITION OF MEMBER BANKS.

The banks have maintained strong reserve positions as shown by
the following table. On September 12, 1914, two months prior to
the inauguration of the new banking system, the banks held excess
reserves of only $22,000,000 above the then required reserve of $175,000,000. When the Federal Reserve Act went into operation, $50,000,000 of reserves were released.
Reserve condition of member national banks.
[000's omitted.]
In vault.
Date of corap- j
trailer's call. I
ReI Held. quired.
1914.
Dec. 31

With Federal
Reserve Bank.

With approved
reserve agents.

Total.
Excess.

Held.

Required.

Required.

Held.

Required.

$17,467 j $81,328

$39,612

$159,567

$96,691

$62,876

101,359
106,072
111,402
98,752
94,407
75,215

41,731
42,349
43,189
36,516
38,428
30,957

181,908
180,598
193,104
166,493
165,065
153,368

101,970
103,516
105,613
89,657
94,406
92,872

79,939
77,082
87,497
76,836
70,659
60,496

Held.

$59, 727

$39,612

$18,512

59,946
54,066
.-.! 60;453
48,299
50,420
| 50,886

41,731
42,349
43,189
36,516
38,428
37,822

20,603
20,459
21,248
19,443
20.238
27i 267

18,507
18,818
19, 236
16,625
17, 550
24,092

Mar. 7
May 1
June 30
Sept. 12
Nov. 17
Dec. 27

55, 568
51,157
46,863
55,485
51,633
53,492

40,663
40,898
40,324
42,591
44,308
44,038

28,899
26,712
34,108
41,294
47,443
62,114

25,954
26,106
33,013
34,856
44,308
44,038

93,868
87,232
73,487
80,821
78,036
66,690

33,309
33,501
25, 704
27,120
20,222
20,032

178,835
165,101
154,458
177,600
177,112
182,296

99,926
100, 505
99,041
104, 567
108,838
108,108

78,409
64,596
55,417
73,033
68,274
74,188

1917
Mar. 5
Mayl
June 20.....
Sept. 1 1 . . .
Nov. 20....

54,418
52,661
50,663

46,224
46,579
44, 580

59,877
63,578
64,553
68,347
74,277

46,224
46.579
44.580
70,310

85,007
77,645
64,996

21,067
21,234
20,238

199,302
193,884
180, 212
68,347
74,277

113,515
114,392
109,398
70,310
68,066

85, 787
79,492
70,814
1,963
6,221

1915.

Mar. 4
May 1
June 23
Sept. 2
Nov. 10
Dec. 31

1916.




DISTRICT NO. 3

341

PHILADELPHIA.

DEPOSITS, LOANS, AND BORROWINGS OF MEMBER BANKS.

Borrowings by member banks are shown in the following table.:
The average ratio between loans and deposits for the past three years
has been 79.3 per cent.
The banks in the district are generally not heavy borrowers, but
they have become accustomed to relying on the Federal Reserve Bank
for assistance. On December 31, 1915, of the total borrowings from
all sources by banks in the district, only 5.5 per cent was from this
institution. On November 20, 1917, this figure was 78.4 per cent.
Member hanks—District

No. 3.

BorrowPer cent
Borrowings ings from
borrowed
from
sources
Total
from
Rate.
Federal
other than borrowings. Fedora!
Reserve
Federal
Reserve
Bank.
Reserve
Bank.
Bank.

Deposits.

Loans and
discounts.

1914.
Dec. 31

$757,895,000

$629,971,000

Perct.
83.0

$786,000

$6,678,000

$7,464,000

Per cent.
10.5

1915.
Mar. 4
Mav 1
June 23
Sept. 2
Nov. 10
Dec. 31

766,350,000
774,550,000
794,940,000
640,859,000
670,195,000
680,957,000

630,516,000
642,200,000
638,372,000
527,798,000
553,856,000
553,338,000

82.3
82.9
80.3
82.3
82.5
81.2

608,000
627,000
599,000
646,000
127,000
168,000

3,245,000
4,654,000
4,773,000
2,880,000
2,049,000
2,887,000

3,853,000
5,281,000
5,372,000
3,526,000
2,176,000
3,055,000

18.0
11.9
11.1
18.3
5.3
5.5

1016.
Max. 7
Mayl......
June 30
Sept. 12
Nov. 17
Dec. 27

705,576,000
728,385,000
723,071,000
759,894,000
800,209,000
803,279,000

567,036,000
587,185,000
590,604,000
597,371,000
621,491,000
612,720,000

80.4
80.6
81.6
78.6
77.7
76.2

189,000
502,000
530,000
263,000
563,000
1,563,000

2,041,000
2,380,000
2,108,000
2,323,000
4,151,000
8,538,000

2,230,000
2,882,000
2,638,000
2,586,000
4,714,000
10,101,000

8.5
17.4
20.1
10.1
11.9
15.5

1917.
Mar. 5
Mayl
June 20
Sept. 1 1 . . . .
Nov. 20

819,658,000
856,440,000
834,139,000
877,549,000
1,137,208,000

626,192,000
637,270,000
727,275,000
647,542,000
664,215,000

76.4
73.7
75.2
73.8
58.5

1,080,000
1,261,000
17,108,000
14,080,000
23,101,000

5,132,000
5,843,000
9,738,000
6,771,000
6,427,000

6,212,000
7,104,000
28,846,000
20,851,000
29,528,000

17.7
17.7
63.6
67.5
78.4

Date.

RELATION OF LOANS AND DEPOSITS OF PHILADELPHIA
MEMBERS.

CLEARING-HOUSE

The following figures, concerning members of the Philadelphia
Clearing House Association, are given as a matter of interest, as the
Philadelphia member banks contribute 42 per cent of the capital of
the Federal Reserve Bank and carry balances with it amounting
to 56 per cent of the total member bank deposits with the Federal
Reserve Bank.




342

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Philadelphia

clearing-house members, 1917.
[000's omitted.]

Capital.
stock.

Loans,
discounts,
and
investments.

$30,370 $532,200
30,370 545,740
30,370 550,740
30,370 552,330
30,470 561,230
30,470 552,810
31,470 554,910
31,470 550,890
31,470 561,790
31,470 573,160
31,470
600,980
31,470 592,550

January...
February.
March
April
May
June
July
August
September
October...
November,
December.

Deposits.

Bank.

Individual.

Total.

$178,360
185,050
188,240
187,020
171,670
169,310
164,680
163,180
164,720
174,340
173,720
169,110

$478,480
482,790
474,620
490,130
486,140
470,230
469,600
466,260
476,310
495,050
492,400
472,070

$656,840
667,841
662,860
677,150
657,810
639,540
634,280
629,440
641,030
669,390
666,120
641,180

Ratio
of loans
to deposits.

81.0
81.8
83.1
81.5
85.3
86.5
87.5
87.6
87.5
85.6
90.2
92.5

ACCEPTANCES UP TO 100 PER CENT.

The following banks, all located in Philadelphia, have been given
authority to accept up to 100 per cent of their capital and surplus,
as provided by the Federal Eeserve Act: Fourth Street National
Bank, Girard National Bank, Philadelphia National Bank, Tradesmen's National Bank, Market Street National Bank.
There was approved on June 7, 1917, an act of the State legislature
empowering State banks and trust companies to accept drafts and
issue letters of credit, and it is expected that the acceptance business
of the banks in the district will become an increasing item.
Acceptance liabilities of member

banks.
Amount.

Date of comptroller's call—
Dec. 31, 1915
Mar. 7, 1916
May 1, 1916
June 30, 1916
Sept. 12, 1916
Nov. 17, 1916
Dec. 27, 1916
Mar. 5, 1917
May 1, 1917
June 20, 1917
Sept. 11, 1917
Nov. 20, 1917

$2, 809, 000
5, 751, 000
6, 219, 000
5, 234, 000
5, 084, 000
8,640,000
8, 309, 000
8, 852, 000
6,154, 000
8, 513, 000
9, .732,000
7, 522,000

BANKS GRANTED FIDUCIARY POWERS.

This bank has received many applications from members for permission to act as trustee, executor, etc. There is a conflict of opinion



DISTRICT NO. 3—PHILADELPHIA.

343

as to whether or not national banks in the States comprising this
district can legally act in fiduciary capacities without enabling legislation, and we do not know which of the following institutions, whose
applications have been approved, have actually undertaken to act in
a fiduciary capacity.
Banks of the district which have J)cen granted special powers.
Location.
Delaware:
Frederica
Pea ford
Laurel
New Jersey:
Atlantic City..
Do
Cape May
Princeton
Trenton
Do
Pennsylvania:
Annville
Belleville
Blossburg
Dubois
Do
Ephrata
Harrisburg
Hazleton
Huntingdon.. .
Jenkintown
Johnstown
Lansdale
Lititz
Marietta
Maytown
Mountville
Myerstown
Nanticoke
Nazareth
Newville
Patton
Pen Argyl
Philadelphia...
Do
Do
Do
Do
Reading
Scranton
Stroudsburg
Tioga
Topton
West Chester..
West Grove
Wilkes-Barre...
Williamsport...
York

Powers granted.

Name of bank.

First National Bank
do

Peoples National Bank
Atlantic City National Bank
Union National Bank
Merchants National Bank
First National Bank
do

Broad Street National Bank
Annville National Bank
Belleville National Bank
Miners National Bank
Deposit National Bank
DuBois National Bank
Farmers National Bank
Merchants National Bank
Hazleton National Bank
First National Bank
Jenkintown National Bank
First National Bank
..do
Farmers National Bank
Exchange National Bank
Maytown National Bank
Mountville National Bank
Myerstown National Bank
First National Bank
Nazareth National Bank
First National Bank
do
.. do
Fourth Street National Bank
Eighth National Bank
Philadelphia National Bank
Quaker City National Bank
Southwark National Bank
Penn National Bank
Third National Bank
First National Bank
Grange National Bank
National Bank of Topton
National Bank of Chester County
National Bank of West Grove
Second National Bank
West Branch National Bark
Industrial National Bank of West York.




Trustee, executor, administrator, and registrar of stocks and bonds.
Do
Do.
Do.

Trustee, executor, and administrator.
Registrar of stocks and bonds.
Trustee, executor, administrator, and registrar of stocks and bonds.
Do
Do.
Do.

Trustee, executor, and administrator.
Trustee, executor.administrator, and registrar of stocks and bonds.
Do.
Do.

Trustee, executor, and administrator.
Trustee, executor, administrator, and registrar of stocks s.pfi bond5?
Do.
Do.

Trustee, executor, administrator.
Trustee, executor, administrator, and registrar of stocks and bonds.
Do
Do.
Do.
Do.
Do.
Do.
Do.
Do.

Do.
Do.
Do

Registrar of stocks and bonds.
Trustee, executor, administrator, and registrar of stocks and bonds.
Registrar of stocks and bonds.
Do.
Trustee, executor, administrator, and registrar of stocks and bonds.
Do.
Registrar of stocks and bonds.
Trustee, executor, administrator, and registrar of stocks and bonds.
Do.
Trustee, executor, and administrator.
Trustee, executor, administrator, and registrar of stocks and bonds.
Do.
Do.
Do.
Do.

344

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
IX.

STATE BANK MEMBERSHIP.

The Legislature of Pennsylvania passed an act, approved July
" 17, 1917, authorizing any bank or trust company incorporated under
the laws of the State to become a member of a Federal Reserve
Bank, and in such event to be subject to all the provisions of the act
of Congress known as the Federal Reserve Act, allowing any such
bank or trust company to comply with the reserve requirements of
such act in lieu of those established by the laws of the State, and
permitting the commissioner of banking to accept the examinations
and audits made pursuant to such act in lieu of those required by
the laws of the State,
The movement of State banking institutions into the Federal
Reserve system began in August when the directors of the
Miners' Deposit Bank of Lykens, Pa., resolved to apply for admission. On October 16 the Girard Trust Co. of Philadelphia filed its
application, which was approved by the Federal Reserve Board on
November 5, and on that date the company become a member. Since
then the following trust companies have been admitted: Philadelphia Trust Co., Philadelphia; Commercial Trust Co., Philadelphia;
Pennsylvania Co,, Philadelphia; Camden Safe Deposit & Trust Co.,
Camden, N. J.; Wilmington Trust Co., Wilmington, Del. This
makes the number of State member banks 7. The banking institutions that have been admitted have resources of $168,683,000. They
have added $831,300 to the capital of this bank and $12,576,000 to its
deposits.
There are 285 banks and trust companies eligible for membership.
Signs of interest in the matter of membership have been manifested
throughout the district, and we believe it will not be very long before most of the State institutions have made application for admission. Membership in the Federal Reserve system is looked upon as
evidence of the strength of a banking institution, and ultimately we
have every confidence that all institutions will be member banks.
As shown by the reports of the loan and transit operations there
has been a marked increase in the use of the facilities of the Federal
Reserve Bank by the member banks, and we hear on all sides expressions of deepest satisfaction with the system. The Liberty loan
transactions brought the bank into direct contact wTith all the State
institutions of the district and have done much to establish cordial
relations with them.
X. FISCAL AGENCY OF THE UNITED STATES.

The most important function performed by the bank during the
year was its part in the placing of the Liberty loans and United
States certificates of indebtedness.




DISTRICT NO. 3—PHILADELPHIA.

345

Promptly following the receipt on May 3 of word from the Secretary of the Treasury that he had decided to use the Federal Reserve
Banks as the central agencies in their districts in organizing the
campaign for placing the bonds and certificates of indebtedness,
receiving subscriptions, handling payments, delivering bonds, etc.,
and that he had communicated with all banks in the United States
asking them to cooperate with the Federal Reserve Banks, a conference was held with the representatives of all the banking interests
and the owners or managers of the newspapers of Philadelphia to
consider plans for conducting the work. As a result of this conference, the governor of the Federal Reserve Bank was asked to appoint
a general committee to have charge of the campaign, which committee was duly organized. Other committees were formed to conduct particular branches of the work. Committees of bankers and
those connected with other lines of business were organized in nearly
every local community, and the work of placing the bonds was
undertaken with the utmost vigor. Depositors of banks were communicated with—the ptiblic interest was developed and stimulated
through addresses at public meetings, at the theaters and other places
of amusement, at meetings of employees in shops and stores.
Scholars and teachers in the schools were organized for the work,
newspaper advertising and posters were freely used. Facilities were
furnished by the banks which made it possible to meet subscriptions
by weekly payments, for the safe keeping of the bonds without
charge, and for making loans on bonds at the same rate of interest
as that borne by the bonds.
In both campaigns practically the same organization was used,
it being, however, more developed and enlarged and made more comj)rehensive for the second campaign.
The conduct of the campaigns was actively supervised by committees, upon the chairmen of which fell the greater burden of the
work.
These men and their associates on these committees were untiring
in their work, all their time was placed at the disposal of the committees, and in the successful conducting of the campaigns they
rendered services which could not have been bought and which were
of inestimable value to their country.
Especial acknowledgment should be made of the services of the
investment bankers, who practically suspended their private business
to undertake the sale of the Liberty loans. They placed at the service
of the committee a large and efficient force of bond salesmen whose
training and experience did much toward the success of the campaign.



346

AisnsruAL

REPORT OF THE FEDERAL RESERVE BOARD.

The report of the Liberty loan campaign committee gives the
names of over 4,000 persons serving as chairmen of the various
general and local committees, cooperating with whom were more
than 25,000 people. It is a matter of deep regret that there is not
sufficient space in this report to permit the publication of all their
names.
Many banking institutions throughout the district availed themselves of the opportunity to become depositaries of the proceeds of
Liberty bonds, 32 banks, 82 trust companies, and 200 national banks
being appointed such depositaries. To pass upon and care for the
securities for these deposits, securities committees composed of three
bank officers were appointed in 15 cities and banking institutions
were appointed as custodians of securities. In Philadelphia committees of bank officers nominated by the Philadelphia Clearing House
Association acted as the securities committees and custodians of securities. The securities sent to the Philadelphia custodians were
deposited with the clearing house. Securities to the value of nearly
$200,000,000 were handled by these committees and custodians. This
service was all voluntary, without compensation, and involved a
considerable sacrifice of time, but it was of inestimable value in
facilitating the settlements for Liberty loan bonds.
The amount of Liberty bonds subscribed for and allotted in this
district and the number of subscribers were as follows:
Amount subscribed.
"First Liberty loan...
Second Liberty loan.

$232,309,250
380,350,250

Amount allotted. Number of
subscribers.
$165,147,600
280,184,100

476,000
623,000

Of the second Liberty loan $8,167,600 was subscribed for by the
scholars and teachers of the public and parochial schools of Philadelphia.
The allotments of issues of Treasury certificates of indebtedness to
this bank were practically all taken by the banking institutions of
the district. At the close of subscription, the bank sometimes had
left a moderate amount of certificates, but in all but one instance
they were finally absorbed by belated subscriptions. The subscriptions for the certificates made through this bank were as follows:




DISTBICT NO. 3

347

PHILADELPHIA.

United States certificates of

indebtedness.

Amount allotted to subscribers.

Issued Apr. 25, due June 30; 3 per
cent.

$25,000 and less
Over $25,000 t o $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000...
Over $250,000 to $500,000...
Over $500,000 to $1,000,000.,

Issued Apr. 27, due June 30; 3 per
cent.

$25,000 and less
,
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000...
Over $250,000 to $500,000...
Over $500,000 to $1,000,000.

Issued May 4, due June 30; 3 per
cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000...
Over $250,000 to $500,000...
Over $500,000 to $1,000,000.

Issued May 10, due July 17; 3i per
cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000...
Over $250,000 to $500,000...
Over $500,000 to $1,000,000.

Issued May 25, due July 30; 3 J per
cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000...
Over $250,000 to $500,000...
Over $500,000 to $1,000,000.

Issued June 8, due July 30; 3J per
cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000...
Over $250,000 to $500,000...
Over $500,000 to $1,000,000.

Issued Aug. 9, due Nov. 15; 3!
per cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000....
Over $250,000 to $500,000....
Over $500,000 to $1,000,000..

Issued Aug. 28, due Nov. 3G; 3 |
per cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 t o $250,000...,
Over $250,000 to $500,000...,
Over 1500,000 to $1,000,000.,

Number
Total
of subamounts
scribers allotted to
in each each group.
group.
$530.000
760,000
1,250,000
1, 760,000
2,700.000
5,000, 000
130

12,000,000

345, 000
305.000
250,000
100,000

55

1, 000, 000
195,000
105.000
100,000
600,000

35

1,000,000
682,000
825,000
1,491,000
1,452,000
2,050,000
3,500,000

184

10,000,000

125
24
29
19
7
3

888,000
610, 000
1,486,000
2,595, 000
1,921,000
1,500,000

207

9,000,000
767,000
939,000
1,492,000
2,315,000
2,741,000
2,146,000

185

10,400,000

687,000
735,000
1,330,000
3,993,030
2,155,000
3,900,030
181

12,800,000
703,000
975,000
1,970,000
1,777,000
2,655,000
1,802,000
9,882,000

34365°—18

23*




348

ANNUAL REPORT OF THE FEDEEAL RESERVE BOARD.
United States certificates of indebtedness—Continued.
Number
of subscribers
in each
group.

Amount allotted to subscribers.

Issued Sept. 17, due Dee. 15; 3£
per cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000
Over $250,000 to $500,000
Over $500,000 to $1,000,000

Total
amounts
allotted to
each group.

71
22
20
10
6
5

$600,000
555,000
1,012,000
1,350,000
1,700,000
3,000,000

134

8,217,000
633,000

134

8,850,000

129
50
29
30
6
11

1,189,000
1,271,000
1,554,000
3,841,000
1,850,000
10,295,000

255

20,000,000

181
75
45
28
6
14

1,806,000
2,047,000
2,355,000
3,410, 000
1,550,000
12,832,000

349

24,000,000

31
21
13
11
7
8

361,000
628,000
660,000
1,310,000
1,800,000
8,841,000

91

13,600,000

24
2
8

•

216,000
87,000
420,000
1,488,000
400,000
8,881,000

53

11,492,000

Subscribed to by Federal Reserve Bank

Issued Sept. 26, due Dec. 15; 4 per
cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000
Over $250,000 to $500,000
Over $500,000 to $1,000,000

Issued Oct. 18, due Nov. 22; 4 per
cent.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 t o $250,000
Over $250,C00 to $500,000
Over $500,000 to $1,000,000

Issued Oct. 24, due Dec. 15; •* per
cent.

$25,000 and less
Over $25,000 to $50,000..
Over $50,000 to $100,000
Over $100,000 to $250,000
Over $250,000 to $500,000
Over $500,000 to $1,000,000

Issued Nov. 30, due June 25,1918,
4 per cent.

125,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000
Over $250,000 to $500,000
Over $500,0C0 to $1,000,000
*

XI. RESUME OF BUSINESS CONDITIONS.

January.—The year commenced with an excellent undertone to
general business conditions. However, the possibility of peace
resulting from the exchange of notes caused hesitation in all lines
of business, and developed a spirit of caution on the part of buyers
in contracting for goods in excess of immediate wants. Commercial
failures during 1916 were fewer than the preceding year and the
liabilities of the companies involved were less in amount. Of the
concerns failing 94 per cent were conducting business with less
than $5,000 capital. The year 1916 was one of comparatively low
crop production, but the prices obtained for most of the crops were
extraordinarily high. The value of the products of farms in the
district shows a gain of about 44 per cent for 1916 over 1915. Rates
for money were easier than the preceding month. Call money de
clined from 5 per cent to 3i per cent.


DISTRICT IsT0. 3

PHILADELPHIA.

349

February.—The difficulties of the railroads and steamship companies in moving goods promptly, the scarcity and inefficiency of
labor, and the increased cost and inadequate supply of coal and
other materials curtailed production somewhat. Activity continued
in practically all industrial and other lines of business, and no difficulty was experienced in disposing of products. In some localities
there was much conservatism in the placing of new orders. Quite
a number of important industrial concerns enlarged their plants.
Collections were generally satisfactory. There was a general feeling
of confidence and optimism as to the future, but on account of the
extraordinary conditions and the uncertainty of the foreign situation, business was conducted in a cautious and conservative way.
Locomotive business was reported as unprecedentedly favorable.
Money rates remained easy. The announcement of Germany's new
submarine policy resulted in violent declines in the prices of securities.
March.—While less active than the preceding months, the volume
of business transacted in most lines continued on a large scale. Stimulated by the United States Government's inquiries and orders,
prices of many articles were further advanced. Because of the uncertain foreign situation, however, commitments were undertaken
with caution. In response to a questionaire to which 362 business
concerns replied, 67 per cent reported business " excellent or good,"
13 per cent " fair," and 20 per cent " uncertain or bad." Two hundred
and thirty-seven concerns reported the outlook to be "excellent or
good," and 118 " fair, uncertain, or bad." An average increase during the past year of 26 per cent in wages and 49 per cent in cost of
materials was reported. Money rates were easy.
April.—The entrance of the United States into the war caused
advances in prices, greater demand for goods, and greater scarcity
in materials in many lines of trade. Manufacturing plants throughout the district were running as fully as the supply of labor and
materials would permit. The problem of deliveries in many cases
was very annoying because of the limitation of output and troublesome transportation conditions. The labor situation became very
acute. The condition of the winter wheat crop was reported 15 per
cent below normal. There arose a patriotic desire on the part of the
people in agricultural sections to do their full duty toward producing the maximum amount of foodstuffs, but on account of the high
prices and scarcity of fertilizer, the high price of seed, and the
scarcity and high wages of labor, it appeared that the acreage planted
in food crops could not be increased materially. The attempt was
made to have people put forth extra efforts in planting vegetable
gardens for their own account. Retail trade during March was
reported as the largest in history, but after Easter trade fell off very




350

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

much. It was felt that this was largely due to the practicing of
economy on the part of the public which was so earnestly recommended. The prospect of large Government borrowings caused hesitation in the investment of funds. Sales of securities fell off and
prices declined.
May.—Manufacturing plants operated as near capacity as possible.
A slowing up became noticeable, however, in retail trade and among
the jobbers of wearing apparel of all kinds, due to extremely high
prices, unseasonable weather, the economy campaign, and the fact
that most consumers were pretty well supplied. Some of the department stores were compelled to reduce their staffs of employees
because of curtailed sales. The potato acreage in Pennsylvania was
estimated at 108 per cent in comparison with last year. Manufacturers of goods not essential to war, such as carpets, lace curtains,
and tapestries, did not have enough orders to warrant more than 50
per cent operation. Surplus reserves of the Philadelphia banks decreased $20,000,000. Money rates stiffened considerably, call money
advancing from 3 | to 4 per cent. The prevailing rate for paper was
5 per cent.
June.—There was a noticeable improvement in business conditions
in those lines which are especially dependent upon weather conditions, higher temperatures having stimulated demand for many
summer specialities and business in seasonable merchandise wTas well
up to normal in volume. The Philadelphia department stores reported considerable improvement and expected business to continue
good. The automobile pleasure car business was reported as not
very good. Cotton and wool prices were very high. A further decrease in the surplus reserves of the Philadelphia banks to the lowest
point since December, 1916, forced up call money to 5 per cent. Commercial paper ruled at 5J per cent. The rediscount feature of the
Federal Reserve Bank was availed of to a very considerable extent.
Financial institutions were occupied with the flotation of the Liberty
Loan.
July.—There was no change, generally speaking, in the great business activity prevailing in this section. In nearly every line, the
manufacturer, jobber and retailer report the volume of business large
and results satisfactory, although there was no cessation of complaints of the difficulty in obtaining workers, the scarcity of fuel,
and unsatisfactory transportation conditions. Uncertainty due to
possible legislation as to price control adversely affected some lines.
Bates for money continued firm, call money and paper being quoted
at 5 per cent. Due to the high cost of materials and high wages, very
much more money was required to conduct business than formerly,
and customers borrowed freely from their banks and lines of credit
were used to the full.



DISTRICT NO. 3—PHILADELPHIA.

351

August.—There was no important development in the business
situation. A strong tendency toward cautiousness existed on the
part of buyers, owing to the uncertainty of future prices and the
high cost and scarcity of many kinds of goods. There wTas a steady
readjustment to war conditions, but business men generally expected
an active fall and winter business. Great difficulty was reported in
all lines in securing sufficient skilled and unskilled labor and office
help, which, in some cases, forced production below normal. The
high cost of building materials and labor resulted in the cessation
of building for investment. Manufacturing druggists and chemists
were taxed to the limit taking care of emergency orders required by
the European countries, the United States Government and the Eed
Cross. Member banks continued to avail themselves quite freely of
the rediscount feature of the Federal Reserve Bank. Financial institutions were well loaned up, and the money market remained on a
firm 5 per cent business. There was a good commercial demand for
funds. Public interest in the security markets was at a low ebb.
September.—Plants throughout the district continued busy and
manufacturers generally expected a very large volume of business
owing to the tremendous quantities of business needed by the Government for carrying on the war. Retail distribution of fall merchandise showed a very satisfactory increase in activity, demand being
stimulated by cool weather and the return of many people to the city,
but there was some complaint that the high prices were restricting
the movement in certain lines. Wholesale orders were placed in
considerable amounts, especially for staples in dry goods, furnishings, notions, underwear, etc. All lines were prevented from working to capacity by the uncertain deliveries, scarcity of raw materials,
and the shortage of labor. Money rates advanced, best names selling
at 5^ per cent.
October.—The outstanding feature of financial and business conditions was the concerted effort of practically all the financial institutions and a great many industrial concerns to make the second
Liberty loan an unqualified success. General business conditions continued to be prosperous, and retail trade retained its activity. The
predominating influence of the war was felt in nearly all lines of
industry, and Government orders took precedence over private business. As a result, the normal demand was somewhat obscured, and a
marked conservation in placing orders for deliveries next spring was
noticeable. The scarcity of cars resulted in very unsatisfactory
deliveries of coal. Government orders for coal produced a shortage
in the supply available for the customary needs of domestic and commercial consumers. The production of iron and steel mills was
seriously curtailed by the scarcity of fuel. The sugar shortage,
caused by the fact that much of the Cuban crop was purchased by the




352

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

allied Governments., was reported to be purely temporary. Another
cause of the scarcity was that consumers were buying far ahead of
their needs, thereby reducing the already small supply in the hands
of the dealers, but relief was in sight from the new Louisiana and
Hawaiian crops, also western beet sugar. Bank clearings readied
a high record figure—$1,678,000,000 for the district. Eates for commercial paper were firm at 5^ to 6 per cent. A continuation of liquidation of high-grade investment securities resulted in a further decline in prices.
November.—Manufacturing industries were running at high pressure, but were somewhat restrained by the very considerable difficulties encountered in securing supplies and sufficient labor. The
large ball-bearing plants in the district were seriously affected by
the falling off in the production of automobiles, for which the largest
part of the output of ball bearings was used. Cotton prices reached
a level hitherto unattained for a long period of years. Retail trade
conditions generally appeared to be stationary. Collections were
good, except in the case of a few industries which were affected adversely by war conditions and the working out of the new Government policies. Building operations were curtailed owing to the
high cost and difficulty in obtaining labor and materials and the
difficulty experienced by builders in securing advances of money
from financial institutions. Exports from the port of Philadelphia reached $62,724,000, a new record, the increase being largely
due to heavy shipments of powder. Opinion throughout the district
was unanimous in agreeing that the railroads should receive an advance in freight rates. Eates for paper continued firm at 5^ to 6
per cent. There was an average demand for loans in most quarters,
but in some parts of the district borrowers used full lines of credit.
December.—The industries engaged in producing supplies for war
purposes were running at as near capacity as possible. Other industries, however, felt to a considerable extent the circumstances which
tended to cut down their output; the demand for their product decreased, and they were unable to meet the wages which the munition
factories offered. Christmas trade was rather disappointing and not
up to normal. Many merchants did not cany as large stocks as was
their custom in previous years, owing to their unwillingness to put in
large stocks of goods at the prevailing high prices and because of
their inability in many instances to secure goods from the manufacturers. The coal situation was considerably aggravated by the appearance of cold weather earlier than usual. Some manufacturing
plants were forced to operate on a margin of not more than one or
two days' supply of coal. Building operations practically ceased,
except where absolutely necessary. The total of the Christmas sav


DISTRICT NO. 3

353

PHILADELPHIA.

ings funds carried by the banks in the district amounted to upward of
$10,000,000, which was about $500,000 ahead of 1916. The number,
of depositors was approximately 350,000. Payments on account of
Liberty loan subscriptions caused a shrinkage in loanable funds, and
money rates were firm. The call-money rate was advanced to 6 pei?
cent and the rate for paper to 5 | per cent.
BANK CLEARINGS.

The growth of business in the district during the year is shown
in the following table of bank clearings, which are the largest on.
record. Of course the high prices of goods constituted a prominent
cause for the big increase.
Clearings in the Third

1917.

January
February
March
April
May
June
July
August
September
October
November
December
Total for rear.




Philadelphia.

District.
District
outside of
Philadelphia.

Total for district.

397, 691,175
251, 517,407
467,016,516
410, 313,000
477, 700,000
503,806,000
331,836,519
368,485,000
337, 772,768
569,400,000
532, 682,000
549,512,824

000,832
83,891,961
97, 276,863
101,560,000
99, 545,000
99,932,000
99, 272,488
92, 576,000
91,846,400
109,360,000
99, 532,000
102,350,996

$1, 494,692,007
335,409,368
564,293,379
511,873,000
577,245,000
603,738,000
431,109,007
461,061,000
429,619,168
678,760,000
632,214,000
651,863,820

17,197,733,209

1,174,144,540

18,371,877,749

26

354

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

1915-1917 BANK CL&ARIMGS COMPARED FOR
PHILADELPHIA P&DERAL RE5ERV& DISTRICT
JAN|FE5|MAR|APR|MAY JUNE[JULY|AUG!5EPT|0CT|N0YlDeC

S 2,000,000,000

1,800,000,000

\

N 1
/

1,600,000,000

*****

1
1,400,000,000
\

1

/

i
i

t

i

t

1,200,000,000

i
i

t

16 , —

t

+'*

/

1,000,000,000

/
800,000,000

/

s

y
/

y

600,000,000

400,000,000

•

200,000,000




CHART NO. 12.

/

f

DISTRICT NO. 3

355

PHILADELPHIA.

COMMERCIAL FAILURES.

The year 1917 showed a continued falling off in the number of
commercial failures, and during the month of September there were
only 40, the smallest number for any month we reported. Of these,
37 were concerns doing business with a capital of $5,000 or less.
The following table has been compiled from Bradstreet's report
of commercial failures in the district:
Bradstrccfs

report of commercial failures in the Third Federal
District, classified as to capital employed.
$5,000 and
less.

$5,000 to
$20,000.

$20,000 to
$50,000.

1916

1917

90
95
96
64
44
46
55
60
69
84
78
88

2
2
3
1
2
4
3
2
1
4

4
7
4
2
2
3
2
5
2

2
1
1
1
1

3

7
1

629

Total

1917

73
48
56
54
58
40
44
46
37
58
58
57

March
April
May
June
July
August
September. .
October
November
December

1916

869

27

39

1916

$50,000 to
$100,000.

$100,000 to
£500,000.

1917

1917

1916

1917

1

1917

January
February

Reserve

1
1

1

75
51
61
56
61
45
48
49
40
65
60
63

96
103
101
67
48
50
57
65
73
87
86
93

5

674

926

1916

1

Total.

1
1
2
1
i

1
1
1
1
2

1

1

9

2
2
2
2

1

2

4

1

1

2

1916

IMPORTS AND EXPORTS.

Exports from the port of Philadelphia during the year 1917 were
the largest on record, and in October, a neAv high mark of $62,724,000
was reached, due chiefly to heavy shipments of powder. Besides
munitions of war, other important items exported in large quantities were grain and petroleum. Naturally, in view of the foreign
situation, imports declined in comparison with the previous year.
Figures prepared by the Commissioners of Navigation follow:
Business through the port of Philadelphia.
Exports.
1917

Imports.
1916

1916

January
February...
March
April
May
June
July
August
September..
October
November..
December...

$43,634,046
57,652,322
38,879,748
39,889,979
42,507,832
41,284,111
21,451,383
57,381,188
24,093,366
62,724,000
32,309,000
40,158,000

$11,738,378
9,801,012
15,567,739
34,688,268
24,830,464
24.286,752
27,890,704
37,013,839
44,377,332
25,217,112
41,467,209
25,165,429

$9,093,450
9,041,989
7,488,047
11,103,862
11,424,218
14,304,452
8,953,507
9,247,078
8,276,928
4,486,000
4,106,000
4,446,000

$7,387,295
9,176,185
9,625,334
11,336,364
12,854,821
13,552,856
10,740,537
8,221,037
6,806,542
7,602,789
6,946,608
6,712,340

Total.

501,964,975

321,044,815

101,971,531

111,407,851




356

AXNUAL REPORT OF THE FEDERAL RESERVE BOARD.
FREIGHT CAR MOVEMENT.

We give below tables showing the loaded freight car movement on
the Pennsylvania, Lehigh Valley, and Delaware, Lackawanna &
Western Railroads during the months of 1917 compared with each
month of the preceding year.
Pennsylvania R. R. loaded freight car movements at Leiviston Junction.
Bituminous
coal,
eastbound.
1917

Coke,
eastbound.

Miscellaneous,
eastbound.

Miscellaneous,
westbound.

Total.

1917

1916

1916

1917

1916

1917

1916

1917

4,812
5,242
6,277
4,999
5,022
4,701
4,608
4,593
4,668
5,216
5,433
5,088

33,820
31,024
38,833
39,103
38, 085
34,382
33,057
30,618
31,766
30,211
26,917
19,300

36,211
33,113
38,211
43,258
39,304
32,922
32,113
35,059
35,537
37,141
37,629
31,670

21,047
18,733
24,629
24,375
26,201
26,257
25,479
24,775
22,821
20,834
17,641
9,958

20,382
19,565
23,040
24,274
23,648
25,620
28,170
28,452
28,318
27,019
23,857
20,829

101,562
89,263
115,056
110,222
115,714
109,497
106,269
101,631
98,398
94,557
89,993
65,900

January
February..
March
April
May
June
July.
August
.
September.
October
November.
December..

54,046
43,711
50,548
44,691
41,527
39,885
42,184
47,027
42,752
43,051
40,088
32.193 38,184

5,563
4,290
5,751
5,552
5/643
6,034
6,366
5,796
5,596
5,503
5,404
4,449

Total

482,249 527,694

65,947

41,132
35,216
45,843
41.192
45, 785
42,824
41,367
40,442
38,215
38,009
40,031

1916
115,451
101,631
118,076
117,222
109,501
103,128
107,075
115,131
111,275
112,427
107,007
95, 771

60,659 387,116 432,168 262,750 293.174 1,198,062 1,313,695

Lehigh Valley R. R. loaded freight car movements.
1917
January..
February
March
April
May
June
July

289,219
244,925
324,971
316,078
382,768
35G,960
334,832

1916

297,819
266,846
325,845
317,627
345,947
313,584
321,923

1917

August
September.
October—
November.
December.
Total

318,009
327,812
344,041
336, 766
248,001

1916

335,263
324.700
363,008
340,832
300,992

3,824,382 3,854,38G

Delaware, Lackavjanna & Western R. R. freight car mileage made on rails
in the State of Neiv Jersey.
1917
January....
February...
March
April
May
June
July

1916

2, 694,942
2 241,833
2,964,152
2, 779,917
3 190,253
3,069,278
2, 626,794

2,894,378
2 ,529,818
'
2, 798,402
2, 704,331
2, 713, 220
2, 651,817
2,684, 534

STOCK-EXCHANGE

1916
August
September..
October
November..
December..

Total.

2,539,253
2,391,001
2,685,839
2,498; 603
2,281,811

2,660,504
2,883,8G4
2,883,864
2,805,530
2,607,211

.|31,971,678 32,817,533

TRANSACTIONS.

The decline in prices of securities, which reached their high point
in November 1916, together with the Government war issues, and the
consequent desire of investors to have their money in liquid form,
in order to purchase Government obligations, resulted in a marked



DISTRICT NO. 3

857

PHILADELPHIA.

contraction in transactions on the Philadelphia Stock Exchange.
There was little public interest in the market throughout the year.
In the month of November, 1916, 1,035,085 shares were traded in,
whereas in November of 1917, the number was only 284,170. The
bond business, however, was reasonably satisfactory. Transactions
on the Philadelphia Stock Exchange are shown in the following
table:
Philadelphia Stock Exchange transactions.
N u m b e r of shares.
1917

Cost of bonds.

... .
.
...

Total

1917

404,319
357,474
382,839
278,141
369,140
187,464
393,542
219,187
256,558
327,698
284,170
260,156

388,194
632,619
293,431
235,001
294,750
281,670
169,023
230,882
559,062
508,992
1,035,085
753,417

$2,396,150
2,007,700
1,536,635
2,065,464
1,185,400
796,350
1,657,250
1,269,970
2,054,850
2,507,100
987,300
1,249,250

$2,528,130
1,932,970
1,865,300
1,541,600
1,572,550
1,498,395
1,155,450
1,402,150
1,180,776
1,723,900
1,779,110
1,323,130

3,820,688

January
February
March
April
May ...
June
July
Au^u^t
September
October
November
December

1916

5,382,156

19,713,419

19,503,461

1916

BUILDING OPERATIONS.

Building operations decreased considerably from the mark reached
in 1916. The high cost of labor and materials and inability of builders to secure advances from financial institutions are given as the
reasons. Figures of building operations in Philadelphia given below are indicative of general building conditions throughout the
district. The bulk of the depreciation was due to the falling off in
the construction of twro-story houses, which amounted to $11,438,355.
Building operations in Philadelphia.
N u m b e r of operations.
1917

J anuary
February
March...
April.
Mav.. .
June
July.
August..
September
October
November
December
Total

„

„
..




....

1916

592
666
578
748
461
270

$2,144,630
4,042,115
3,470,625
5,009,740
3 558 355
2,328,755
5,195,365
1,554.115
2,252,765
2 030 475
1,629,425
740,020

$1,859,090
2,437,750
4,590,630
6,227,780
4 791 255
5,147,115
3,101,685
4,472,120
3,301,310
4 055 045
4,451,925
5,460,865

8,961

15,613

33,956,385

49,896,520

763

.

1917

736
1,086
1,606
1,915
1,524
1,709
1,040
1,247
1,153
1,337
1,181
1,079

613
815
1,147
1,337
971

. .

1916

Estimated cost.

358

ANNUAL REPOKT OF THE FEDERAL EESEEVE BOARD.
POSTAL BUSINESS.

Monthly postal receipts at the Philadelphia post office exceeded
$1,000,000 for the first time in the month of November, when the
figures reached $1,077,115. The increase shown is due, of course, to
a large extent, to the higher postage rates which became effective
about that time.
Comparative statement

of the postal and money-order "business of the Philadelphia post office.
Postal business.
1917

January .
February
March....
April... .
May
June
August
September
October.
November
December
Total. .

1916

Money-order business.
1917

1916

.

.

....

$795,730
768,419
848,540
780,454
816,427
753,425
659,289
693,636
750,615
830,311
826,095
968,010

$2,101,685
1,940,608
2,393,709
2,049,152
2,082, 896
2,115,971
2,062,602
2,206,179
2,225,889
2,507,410
2,401,672
2,636,275

$1,764,669
1,773,654
2-005. 4JV7
L, 840, 750
:
t, 868,081
]L, 859,586
1,759,991
1,864,638
:1,832,810
L, 970,602
L. 985.087
2,287,716

10,505,242

. . .

$887,803
763,553
911,439
845, 997
843,591
785, 701
703,971
734,499
817,806
973,469
1,077,115
1,160,298

9,490, 951

26,724,048

22,813,041

CROPS, COLD STORAGE HOLDINGS, TOBACCO.

The farmers in the district harvested good crops, which were in
excellent condition for the most part. Farmers were, however, harrassed by inability to secure farm labor, and in many instances were
forced to aid each other. Some crops had to be sacrificed, as the
farmers were unable to harvest them. The new wheat crop appears
to have a good start, but the acreage planted is about the same as last
year. Cold storage plants in the district reported an increase of 29
per cent in the holdings of eggs compared with the previous year,
19 per cent in butter, and 53 per cent in cheese. Holdings of meat,
however, declined from 10 to 15 per cent on the average. The tobacco fields of Pennsylvania are estimated to have produced over
58,000,000 pounds of tobacco during 1917, according to the Department of Agriculture. This is an increase of approximately 9,000,000 pounds over the 1916 crop. Prices paid averaged as high as 25
to 30 cents a pound.




DISTRICT NO. 4—CLEVELAND.
D. C. WILLS, Chairman and Federal Reserve Agent.

It lias been frequently urged that the primary function of the
Federal Reserve Bank is that of service—first, in mobilizing reserves;
second, in rediseounting; and third, in providing an elastic currency;
and that it did not greatly matter whether or not the Federal Reserve Banks might be money-making institutions. With vastly increased opportunities for service during the past year, however, the
Federal Reserve Banks have demonstrated their capacity to earn
a very comfortable margin over their expenses. The Federal Reserve
Bank of Cleveland has made net earnings during the year sufficient
to pay its entire arrearage of accrued dividends; but as a matter of
banking prudence, it has been deemed wise to provide an ample
reserve against depreciation, and accumulated dividends have therefore been paid to July 1, 1917. All furniture and equipment have
been charged off the books. The expenses at the same time have
naturally increased markedly with the rapidly expanding activities.
Chart No. 1, appended hereto, shows graphically the gross earnings, both in total and divided into the three chief classes of revenue,
together with the expenses and net earnings, and Exhibit A gives
the data in tabular form. Chart No. 2 shows the relation of revenue-producing assets to capital stock. Exhibit B contains the daily
average of invested funds, and the average rate of earnings on each
class of investments, for each month of the year, compared with
each month of 1916, and summary of investment operations is also
shown in this exhibit.
Exhibit C is a comparative balance sheet as at the close of business December 30, 1916, and December 31, 1917.
Exhibit D is the comparative profit and loss account for the years
1916 and 1917.
The extraordinary history of the United States during the year
has tended toward a uniformity of experience in business and banking conditions throughout the country. District No. 4 is very largely
a manufacturing district, and its record for the year as such is quite
similar to that of the other industrial districts. It is the leading dis-




359

360

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

trict in the production of primary iron and steel products, and its
industries of this character have of course been taxed to capacity
throughout most of the year, together with industries in most other
lines, although there has been some slight recession from the peak after the completion of contracts for munitions, etc., from foreign Governments, and pending the placing of orders for our own Government. This district also ranks high in agricultural products; and
although the planting season was late and cold, the crops have been
large and profitable. Building industries have been checked somewhat by the high cost of materials and labor. Transportation difficulties have been very great, and in many lines have severely retarded production as well as distribution. The district, although containing a very large part of the bituminous coal supply of the country, has suffered a severe coal shortage during the last part of the
year, owing in part to transportation difficulties, in part to the situation which arose from the fixing of coal prices, and in part to the
necessities of the Northwest for coal, resulting in the priority order
for Lake shipments; in some cases, industries have been obliged to
close down for short periods because of lack of fuel. In spite of the
untoward conditions above referred to, however, •the general prosperity has been great, and the record of the district in Liberty loan
subscriptions is evidence not only of the patriotism and thrift of our
people, but also of surplus wealth produced. Between the first and
second Liberty loans, the deposits in the banks of the district showed
an actual increase of about 3 per cent. The growth of resources of
member banks during the year is shown in Exhibit E.
DISCOUNTS FOR MEMBER BANKS.

The operations of the Federal Reserve Bank of Cleveland in rediscounts have immensely increased during the latter months of the
year. This increase has been produced not only by the financing of
Liberty loans, but by the demands of industry and commerce, which
have required large amounts of working capital for financing current
orders and operations, increased notably by high cost of materials
and labor and consequent large inventories, and to some extent by
the delays in production and deliveries incident to the difficulty of
obtaining materials and the inadequate transportation facilities.
Exihibit F shows the year's operations in rediscounts for member
banks under the several classes of paper, and classified by maturities,
with the same data for 1916.
While the demand for money has increased and the money rates
have tended to harden, no general advance in rates of rediscount
at this bank was deemed advisable until December 1, when this
bank in common with most of the other Federal Reserve Banks announced slight advances.




DISTRICT NO. 4—CLEVELAND.

.

361

Exhibit G shows the rates throughout the year for the various
classes and maturities of paper.
The growth in the use of trade acceptances has been marked during the latter part of the year. It was to have been expected that
the usual reluctance to change would deter banks and business houses
from the adoption of this new system until an active demand for
money and credit and for the facilities of the Federal Reserve Banks
should furnish a practical demonstration of the advantages of this
kind of paper. From the inauguration of the Federal Reserve system, the best-informed men have felt that the adoption of the tradeacceptance system was only a matter of time, but that a considerable
amount of time would be necessary before it should become the commoner method of closing accounts. It nowT seems that in less time
than was anticipated, the system may come into very general operation. The Federal Reserve Bank of Cleveland has been active in
the promotion of the adoption of the system at every opportunity,
having been represented at a number of meetings of trade organizations for conferences on the subject, and having furnished information to a very large number of inquirers both by mail and in person.
A large number of copies of the booklet, "Why Accept? " have been
ordered through this bank during the year by business houses introducing the system among their trade.
BANKERS' ACCEPTANCES.

Transactions in bankers' acceptances have been large, although
recently the bank has not been actively in the market for bankers'
bills because of the needs of our member banks. District No. 4 being
rather more self-contained than some of the other districts, however,
there have been occasions when the demands of member banks in
other districts were so much greater, proportionately, than in this
district, that other Federal Reserve Banks have found it desirable to
dispose of some of their investments in bankers' bills, and the Federal
Reserve Bank of Cleveland has been glad to be of service to the general situation by making large purchases on these occasions—thus
providing the intercommunication and leveling up between the reservoirs which was intended in the establishment of the system of 12
banks, but without the necessity of rediscounting for any other Federal Reserve Bank its member banks' paper. A number of the larger
banks in district No. 4 have entered the acceptance field, discounting
bills for both foreign and domestic trade during the year, and the
Federal Reserve Bank of Cleveland has purchased the bills of its
own member banks freely when offered.
The following member banks have, upon application, been granted
the right to accept up to 100 per cent of their capital and surplus



362

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

during the year: Fifth-Third National Bank, Cincinnati; Cleveland Trust Co.; First National Bank, Cleveland; Union National
Bank, Cleveland; Union Trust Co., Pittsburgh.
Exhibit H shows the transactions in bankers' acceptances during
the year as compared with 1916.
UNITED STATES BONDS.

Transactions in the older issues of Government securities have of
course been practically suspended since the offering of the first Liberty loan. Purchases of small amounts of bonds from member banks
have been made as a matter of accommodation. Exhibit I shows the
transactions in Government securities.
MUNICIPAL WARRANTS.

As soon as war was declared and it became apparent that the
facilities of the Federal Reserve Banks would probably be needed
by their member banks, the Federal Eeserve Bank of Cleveland, in
accordance with the wise suggestion of the Federal Reserve Board
and in common with the other Federal Reserve Banks, withdrew
entirely from the market for municipal warrants, and has since purchased only small amounts of early maturing municipal bonds for
which sinking funds had been provided, merely as an accommodation
to member banks desiring to dispose of such bonds. The transactions
in municipal warrants are shown in Exhibit J.
RESERVE POSITION.

The reserve position of the bank has remained strong in spite of
the demands upon its loaning power. This has been due chiefly to
the increased reserve required to be maintained in the Federal
Reserve Banks by the amendment of section 19 of the Federal
Reserve Act, but also in part to the large increases in capital and
reserve deposits on account of the accession of important State
banks to our membership, as well as the increase in the capital and
surplus of banks already members; and in some degree also to the
considerable sums of gold patriotically sent by both member and
State banks to strengthen the position of the system, either as excess
deposits or in exchange for Federal Reserve notes. Exhibit K shows
the changes in reserve position during the year.
STATE BANK MEMBERS.

The movement of the larger and more progressive State banks to
join the Federal Reserve system has been marked in this district.



DISTRICT NO. 4

CLEVELAND.

363

This movement was known to be ultimately inevitable, and has been
of course stimulated largely by the amendment of section 9 of the
Federal Reserve Act as well as by a recognition of the added strength
and prestige given to any bank by voluntary membership in the
system, but has been also in large part due to a patriotic response to
the forceful appeal of the President and a desire to do eveything
necessary to fortify the position of our banking system against all
possible' contingencies arising from the war. Some considerable
credit must also be given to the member banks, who have shown in
many cases their growing appreciation of the value of membership,
thus encouraging nonmembers to join the system.
The following State banks have been admitted to membership
during the year:
Date
of admission.

Name of bank.

1917.
Apr. 11
July 2
Nov. 1
Nov. 8
Do....
Nov. 21
Do....
Nov. 24
Nov. 30
Dec. 3
Dec. 14
Dec. 28

Cleveland Trust Co
Guardian Savings & Trust Co
Lawrence Savings & Trust Co
Citizens Savings & Trust Co
Citizens Trust & Savings Bank
Ohio Bank & Trust Co
Hillsboro Bank & Savings Co
City Trust & Savings Bank
Union Trust Co. of Pittsburgh
Exchange Bank of Kentucky
Pittsburgh Trust Co
First Standard Bank & Trust Co

Location of bank.

Cleveland, Ohio
....do
New Castle, Pa.. . . . . . .
y^ciovx^/m x c i
Cleveland, Ohio
Columbus, Ohio
Massillon, Ohio
Hillsboro, Ohio
Youngstown, Ohio..
Pittsburgh, Pa
Mount Sterling, K y .
Pittsburgh, Pa
Maysville, Ky
i^cvv

Capital
and
surplus.

$5,000,000
6,000,000
600,000
8,000,000
850,000
187,500
62,000
350,000
36,000,000
75,000
3,000,000
235,000

Exhibit L shows the changes in the membership, in capital stock,
and in reserve deposits during the year.
RELATIONS WITH MEMBERS AND THE PUBLIC.

Exhibit M shows the accommodation which has been extended to
member banks through rediscounts and purchase of acceptances during the year compared with 1916.
Overdrafts have been small in volume, and of those which have
appeared a number have been due to delays in the mail service.
The required reserve deposits of member banks have been quite
generally maintained unimpaired, and although it has been necessary to assess penalties for deficient reserves upon a small number of
banks each month, the disposition to maintain reserves in conformity
with the law, or beyond requirements, has been apparent on the part
of most banks. Weekly reports of required reserve are made by
banks in the reserve cities and semimonthly reports by all other banks.
One member bank has been closed by the comptroller during the
year. The Federal Eeserve Bank of Cleveland has had no losses and
has no past-due paper on its books.

34365°-—18
24


364

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Through its Liberty loan transactions the bank has come into
touch with the general public to a far greater degree than would
have been thought possible at the beginning of the year. Arising
out of this relation has come a realization of the functions played
by the Federal Reserve Banks, not only as fiscal agents of the Government, but in steadying the money market and in providing for
the distribution of the immense amounts of money and credit which
have been moving throughout the country. This practical experience
has confirmed the impression which the public very generally entertained even in advance of many banks, that the Federal Reserve
system is a tremendously useful and practically indispensable servant
of the public welfare; and undoubtedly great good is already resulting from the strengthening of this conviction.
RELATIONS WITH THE GOVERNMENT.

The relation of the Federal Reserve Bank to the Government is
of course the outstanding feature of the year's history. In the Federal Reserve Bank of Cleveland a fiscal agency department, with a
staff of 60 persons, has been created in a few months, occupying almost half of the entire floor space required by the bank. This department does not include members of the Liberty loan committees,
but is occupied in the distribution of bonds and certificates, the collection of and accounting for payments, the arrangements with depositary banks, tabulation of data, and in general the handling of
the business produced by the great success of the " sales force," the
Libert}^ loan committee, which has rendered such conspicuous voluntary service.
THE FIRST LIBERTY LOAN.

The call of the Secretary of the Treasury for organization to obtain subscriptions to the first Liberty loan was received by the Federal Reserve Bank of Cleveland on May 3, 1917, and at an informal
conference the immediate formation of a central Liberty loan committee to represent the entire district was deemed advisable. This
was accomplished by requesting the clearing house associations in
the 13 more important centers of population and banking resources
to send one delegate each to the Federal Reserve Bank for a discussion of program and the formation of a permanent organization.
These delegates met on May 12, 1917, and after a thorough discussion of the problem, in so far as its details could be foreseen at that
time, effected the organization of a central Liberty loan committee.
The committee thereupon appointed an executive committee.
The members of the central Liberty loan committee were thereupon constituted chairmen of the local organizations in their respec


365

DISTRICT NO. 4—CLEVELAND.

tive counties. The rural territory not directly covered by these committees appointed representatives who thereupon organized a separate county organization committee with subcommittees directed
from Cleveland, Toledo, Columbus, Cincinnati, Pittsburgh, and Lexington. The 168 county areas within the Fourth Federal Keserve
District were completely organized, the various security houses within the district contributing from their sales force members who were
assigned to separate counties, and proceeded at once to organize
county organizations.
The district Liberty loan organization, as such? was compelled under force of circumstances to use the Federal Reserve Bank as headquarters, and under the stress of conditions, this produced some
confusion which in some degree hampered the committees, as well as
the operating staff of the Federal Eeserve Bank.
By June 1, 1917, there was thorough organization in every one1
of the 168 counties of the district, and the effect of this organization, entirely voluntary, became at once apparent. The organization was, of course, more highly developed in the larger centers, although the work of the rural county chairmen can not be spoken
of with too high praise.
The closing of subscriptions June 15, 1917, showed in possession of
the Federal Reserve Bank, qaulified subscriptions in excess of $286,000.000 from 514,000 subscribers. The several areas reported as
follows:
Quota.
Pittsburgh
Toledo
Cleveland

$80,858, 000'
17,121, 100
71,756, 000

Subscription.
Sill,047,350
16,008,050
96,998,850

Quota
Columbus..
Cincinnati
Lexington..

$9 ; 279 000
33, 368, 500
8,025, 000

Subscription.
$10,751,550
44,659,450
6,819,750

Exhibit N shows the subscriptions and allotments classified.
SECOND LIBERTY LOAN OF 1 9 1 7 .

Experiences of the first Liberty loan indicated clearly the wisdom
and necessity of a separate location for the headquarters of the
central Liberty loan committee and a more comprehensive staff in
its organization. The executive committee appointed on the first
Liberty loan campaign immediately held sessions with a view of
perfecting such an organization. The personnel of the central
Liberty loan committee, as well as the personnel of the executive
committee, was largely unchanged. There were a few changes in
the chairmanships of the various county committees, owing to illness,
other activities, etc., but in the main the skeleton organization developed in the first campaign was retained, although extended in
detail in many respects.




366

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The executive committee determined upon the policy of making a
practical requisition upon each bank for its proportionate share of
the amount of the second loan which the Secretary of the Treasury
expected the fourth district to raise. With this end in view, the
executive office of the committee carefully studied methods and means
to establish just quotas of the banking resources of the district. In
August, 1917, all banks within the district were asked to report the
condition of their deposits as of June 15 and August 15, and also
the amount of Liberty loan bonds of the first loan still in their
possession. The response to this questionnaire was liberal and enabled the committee to establish the interesting fact that only a
small percentage of bonds of the first Liberty loan was still in the
hands of the banks, and, furthermore, that the deposits of institutions
so reporting had increased from June 15 to August 15 between 3 |
and 4 per cent. The banks that did not report were considered as
possessing the deposits given in the Rand-McNally Bankers' Directory of July 1, 1917, plus 3|- per cent, the average increase shown by
the reporting banks. Upon this basis, a quota of so many dollars
was fixed upon every banking institution in the district; and each
bank was advised by special letter, received on October 1, of their
proportion of the $300,000,000 of bonds which was the total minimum
subscription asked of the Fourth Federal Reserve district by the
Secretary of the Treasury. The effectiveness of the more comprehensive organization and the value of the well-learned lessons of the
first loan campaign became quickly apparent as the second loan
campaign gathered headway. Every bank in the district was requested
to report the subscriptions obtained for each day upon " ke}^ed " cards
furnished them for the purpose. This rather burdensome task was
faithfully performed by about 80 per cent of the banks, and the
committee wTas able to judge of the progress with more than ordinary
accuracy from day to day.
The entire 168 counties within the Fourth Federal Reserve district
in the second campaign were divided into six " areas," administered
from Cleveland, Cincinnati, Columbus, Pittsburgh, Toledo, and Lexington. The Liberty loan organizations in these six central points
took upon themselves cheerfully, and performed with the greatest
skill, the task of coordinating the campaign between each center and
the counties assigned to it. Each area organization made every effort to exceed the minimum quota of every county within its area.
The rivalry between the areas was healthful and helpful; the work
of the county chairmen was most noteworthy in its zeal and efficiency.
The organizations in each of the six area centers were highly developed, and were made up of an extremely skillful and high-powered
personnel.



DISTRICT NO. 4

367

CLEVELAND.

The distribution of publicity and its choice and preparation were
excellent and far-reaching in their effect. The publicity bureau, which
undertook to supply advertising and editorial matter for 912 papers
within the district, prepared and distributed a large amount of extraordinary copy, and it is interesting to note that 850 newspapers
out of the 912 whose cooperation was so requested, complied in the
fullest degree.
The result was a total subscription to the second Liberty loan in
the Fourth Federal Reserve district in excess of $4865000?0Q0, reported from 867,000 subscribers. The several areas reported as follows :
Quota.
Cleveland
Pittsburgh
Cincinnati

$92,725,200
127,819,500
36,701,100

Subscription.
$151,377,200
205,541,100
74,776,450

Quota.
Columbus
Toledo..
Lexington

112,511,900
21.054,200
8,732,950

Subscription,
819,502,800
22,648,500
11,385,400

Exhibit O shows the number and amounts of subscriptions and
allotments of the second Liberty loan, divided according to size of
subscriptions in the classes fixed by the Secretary of the Treasury
for the purpose of allotment.
TREASURY CERTIFICATES OF INDEBTEDNESS.

With each issue of Treasury certificates of indebtedness, an effort
has been made not only to secure more than the district's proportion
of the total issue, but also to assure as wide a distribution as possible. The earlier issues were brought particularly to the attention
of banks throughout the district which had experience as distributors of high-grade bonds and note issues, and their hearty cooperation was uniformly secured. Exhibit P shows the total amount of
each issue and the amounts allotted to the fourth district.
The Federal Reserve Bank of Cleveland purchased varying
amounts of each issue, chiefly for the purpose of having some of the
certificates on hand for distribution to intending purchasers who had
not subscribed before the subscriptions were closed; and in every
case the amount held by the Federal Eeserve Bank found lodgment
in the hands of purchasers within a very short time after the date
of issue.
FINANCING THE CARRYING OF WAR LOANS.

For the first Liberty loan and the issues of certificates leading up
to it, a rather remarkably small volume of rediscounting by the



S68

ANNUAL EEPOET OF THE FEDERAL EESEBVE BOARD.

Federal Eeserve Bank was required, and the reports received from
the banks under date of August 15 indicated that at that time practically all of the loan had been absorbed by the public, only a small
amount of bonds being held by the banks themselves. For the second
Liberty loan and the Treasury certificates issued in connection with
it, a considerably larger volume of discounting has been done, and the
indications are that a considerably larger volume of bonds is still
in the hands of banks, although the proportion is not in the least a
matter of concern.
The total volume of member banks' collateral notes secured by
Liberty loan bonds or certificates of indebtedness on July 15 was
$1,050,000; on December 15, $10,885,550. The total volume of member banks5 customers9 paper, similarly secured, on our books on December 15 was $10,201,672.94. The exact corresponding figure for
July 15 is not ascertainable, the records not being kept at that time
to show this amount; but the amount was less than $1,000,000,
Exhibit Q shows the total volume of rediscounts, both of member
banks' notes secured by Government securities as collateral and of
paper of customers of the banks secured by Government securities,
for each month of the year.
EXPENSE OF LIBERTY LOAN AGEXCY.

For the first Liberty loan the sum of $75,000 was named as the
amount of expense in the fourth district wThich the Treasury Department would reimburse, upon presentation of vouchers in due form,
without question. The attempt was made to keep the expenditure
within this sum, but tlie actual expense chargeable to the first Liberty
loan to the date hereof is $104,593.05. For the second Liberty loan
$200,000 was named as the available amount, and there has been
expended to date $131,404.60.
With considerable difficulty and gradually a capable office force
has been built up for the clerical work of the Liberty loan committee, for the receiving of subscriptions and payments and accounting
therefor, for issuing and exchanging certificates and bonds, for handling applications for designation as depositary for war-loan funds
and conducting the business incident to such deposits, and for the
other necessary work involved in oar functions as fiscal agent; and a
total of $49,192.08 has been paid in salaries to date of this report.
No fees or commissions have been paid; the banks of the district
have performed their arduous duties in handling large numbers of
small subscriptions and in many cases very small payments, and in
distributing the bonds, without reimbursement of any sort. The expense of all newspaper advertising done in connection with the loans
was contributed by public-spirited banks and business houses. The



DISTRICT NO. 4

CLEVELAND.

369

actual out-of-pocket expenses of representatives of the Liberty loan
committees in traveling, purchasing supplies, etc., were refunded, as
far as possible.
GENERAL EFFECT OF GOVERNMENT FINANCING.

The effect of the Government financing in district No. 4 has been
undoubtedly similar to that in all other districts. There has been,
naturally, an expansion in banking resources, a tightening of the
rates for money, and the loaning ability of all financial institutions
has been quite heavily drawn upon. Without doubt a part of the
curtailment of building operations is due to the investment of funds
in war loans which might otherwise have gone into such operations,
as well as to the high cost of building. Many other forms of enterprise which are dependent upon a free supply of money for investment as fixed capital have been curtailed. The flotations of the
loans, together with other influences of the war, has resulted in a
decided trend toward the gradual exclusion of the purchase, and
consequently the manufacture and distribution, of nonessentials.
Manufacturers and dealers in nonessentiais are therefore beginning
to be quite seriously affected. On the other hand, this tendency toward economy and thrift is undoubtedly having a very beneficial effect on all of the people, and after the pains of adjustment have been
passed, the general situation should be sounder than before.
Chart No. 4 shows the fluctuation of Government deposits during
the year, and Exhibit E gives the same information in tabular form.
RELATIONS WITH COMPTROLLER'S OFFICE.

The bank has endeavored during the year to keep in close harmony
with the office of the Comptroller of the Currency and the chief
national bank examiner of the district, whose office is in the same
building. Acknowledgment is very glady made of the cooperation
which has been rendered by Chief Examiner S. H. L. Cooper and
his staff.
NOTE ISSUE.

In the issue and redemption of Federal Eeserve notes, which has
been a conspicuous feature of the year's operations, the experience
of district No. 4 runs practically parallel wTith that of ail the other
districts. A large number of notes have been issued in exchange for
gold and gold certificates deposited with the bank, which have
strengthened the general national situation very materially. The
demands, however, for pay-roll currency have been constant and increasing, and far in excess of the currency deposited with this bank,



370

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

so resulting in a large increase in the volume of outstanding Federal
Reserve notes. Of course, this currency expansion is in some degree
necessary and inevitable at a time of greatly increased volume of
business and higher cost of labor and commodities. The gold reserve
against Federal Reserve notes, however, has remained strong throughout the year, and there is, in our judgment, little warrant for a fear
that undue or unnecessary inflation is taking place.
Chart No. 5 shows the movement of Federal Reserve notes and
of gold reserve during the year, and Exhibit S shows the denominations issued, destroyed, and outstanding, as well as those exchanged
with other Federal Reserve Banks. The cost of Federal Reserve
notes issued, including redemption cost, was $75,526.78.
BRANCH BANKS.

The officers and directors of the Federal Reserve Bank of Cleveland have always had in mind the certainty that sooner or later it
"would be desirable to establish branch banks in at least the two other
large cities in the district. Upon the enactment by Congress of the
amendment to the Federal Reserve Act, faciliating, among other
things, the establishment of branches, in June of this year the Federal Reserve Board suggested that in their judgment the time had
come when the system would shortly require this additional machinery. The distances in district No. 4 being comparatively short, there
is not the same urgent necessity of branches as is evident in some of
the districts covering larger areas. However, it was recognized that
particularly in the collection of checks and in the payment and receipt of cash, there would be very great conveniences, particularly to
the member banks in Cincinnati and Pittsburgh, in the location of
branches in those cities. No requests had been made by the banks of
either city, however, for the establishment of a branch until July 2,
1917, when the clearing house banks of Cincinnati, through a committee, forwarded to the directors of the Federal Reserve Bank of
Cleveland a petition for the establishment of a branch in that city.
The clearing house committee was immediately invited to confer with
our directors on July 10, and at this and succeeding conferences the
situation in Cincinnati was carefully considered. A committee of the
board of directors was appointed to meet with Mr. Delano, of the
Federal Reserve Board, at Cincinnati about the middle of August,
and at the meeting of the directors on September 7 the committee
reported, suggesting the establishment of a branch for the handling
and collection of checks and drafts and the receipt and payment of
cash.
After further conference with the Cincinnati representatives, and
exhaustive consideration of the by-laws and the probable operation



DISTRICT NO. 4

CLEVELAND.

371

of the branch on the part of the Federal Reserve Board and representatives of our directors, involving several conferences, the directors, at the meeting of October 5, recommended to the Federal
Reserve Board that they be permitted to establish a branch at Cincinnati.
In view of the probability that the plan of operation of this branch
would constitute a desirable precedent for branches in other districts, the Federal Eeserve Board at once devoted itself and its counsel to thorough and careful deliberation upon the form and content
of the by-laws.
The Federal Eeserve Board having approved our recommendation
on October 29, at the meeting of November 7 the directors of the
Federal Eeserve Bank of Cleveland formally, by resolution, established the branch and named Mr. W. S. Eowe, president of the First
National Bank; Mr. W. C. Procter, president of The Procter &
Gamble Co., and Mr. L. W. Manning, secretary of the Federal
Eeserve Bank of Cleveland, as their three appointees for directors
of the Cincinnati branch, subject to the approval of the Federal
Eeserve Board. The Federal Eeserve Board approved these appointments and itself appointed Mr. Charles A. Hinsch, president of the
Fifth-Third National Bank of Cincinnati, and Hon. Judson Harmon,
former governor of Ohio, as its appointees. Since that time the
plans for opening the branch have gone forward as rapidly as possible ; quarters have been secured, part of the staff has been employed,
vault and other equipment has been ordered, the accounting forms
and procedure have been very carefulty worked out, and the beginning of the bank's operations is expected to occur early in January.
Under date of October 17 a petition from the member banks of
Pittsburgh for the establishment of a branch in that cit}^ was transmitted to our directors, some informal discussion having occurred
prior to that time. With the experience and the.plan adopted at
Cincinnati as a guide, somewhat more rapid progress was possible
than in the case of Cincinnati, and after conference with the committee representing the Pittsburgh Clearing House Association, at
the regular meeting of November 7 a resolution was adopted recommending to the Federal Beserve Board that permission be granted
to establish a branch in Pittsburgh with powers similar to those of
the Cincinnati branch. A committee was appointed to confer with
the representatives of the clearing house association in Pittsburgh
on November 14, and at the meeting of our board on December 8 the
report of the committee was received and Messrs. E. B. Mellon, vice
president of the Mellon National Bank; Charles W. Brown, president of the Pittsburgh Plate Glass Co., and George De Camp, national bank examiner, were named as the appointees of the Federal Re


372

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

serve Bank of Cleveland on the directorate of the Pittsburgh branch.
The Federal Reserve Board approved these appointments and named
Messrs. T. XL Given, president of the Farmers Deposit National
Bank, and J. D. Gallery, chairman of the board of directors of the
Pittsburgh Railways Co., as its appointees. Mr. De Camp, designated
as manager of the branch, was unable to secure release by the Comptroller of the Currency until January 1, but on that date will assume
his duties, and the opening of the Pittsburgh branch should follow
closely after that of the Cincinnati branch.
INTERNAL MANAGEMENT.

The board of directors has met 13 times during the year with an
average attendance of eight. Fifty-three meetings of the executive
committee have been held. Mr. E. P. Wright, secretary and treasurer
of the Reed Manufacturing Co., of Erie, Pa., succeeded Mr. C. H.
Bagley, of Cony, Pa., as a class B director on January 1, 1917,
Mr. Bagley having been unable to stand for reelection because of
poor health; and this has been the only change in the personnel of
the board. Mr. W. S. Rowe has remained the member of the advisory
council.
On January 1, 1917, Mr. Horace G. Davis, then assistant to the
Federal Reserve agent, was made an assistant cashier; and on September 1, Mr. F. J. Zurlinden, who had been head of the discount and
investment department, was made an assistant cashier, as was also
Mr. W. F. Taylor, who had been auditor; and Mr. G. H. Wagner,
who had been assistant auditor, was made auditor. At this time areadjustment of the work of the bank, made necessary in large part
by the establishment of the fiscal agency department, was effected,
and Mr. M. J. Fleming, assistant cashier since January 1, 1916,
took charge of the new department, the remainder of the operating departments being distributed under the supervision of the other
three assistant cashiers. Owing to the increase in the work of all
departments, many additions to the staff have been necessary, and
there are now 64 employees in the banking department proper, 75
in the transit department, and 58 in the fiscal agency department.
Of the bank employees, six are serving exclusively in the department
of the Federal Reserve agent, which has required an increasing
organization.
On November 27 Mr. L. W. Manning, who had been with the bank
since its organization, and had served since January 1 as secretary
of the bank and assistant to the Federal Reserve agent, took office as
manager of the Cincinnati branch.
To accommodate the fiscal agency department it has been necessary
to secure additional space, adjoining the quarters on the first floor of



DISTRICT 2ST0. 4

CLEVELAND.

373

the Williamson Building which have been occupied by the bank since
January 1, 1917; and this space lias had to be built, covering a court
between the two wings of the building. Our rapidly expanding functions have made it increasingly difficult to provide and arrange working facilities rapidly enough. An additional supply of vault equipment has been necessary, and the vault is now fully occupied with
high-grade modern chests, in units which will be available in the
event of any necessity of change in location.
EXAMINATIONS.

One complete examination of the bank has been made during the
year by the Federal Reserve Board examiner and his staff: also a
brief examination of the methods of the fiscal agency department
while the first Liberty loan was being handled.
CHECK COLLECTION AND CLEARING.

The check clearing and collection system has grown with the other
work of the bank during the year, and as a result of frequent invitations, 70 nonmember banks have been added to the par list, which
now includes 5G5 of the 1,170 nonmember banks in the district.
Exhibit T shows the volume of clearing operations.
The operations of the gold settlement fund during the year ara
fully covered in the report of the Federal Reserve Board. The immense usefulness and actual indispensability of this facility has been
many times demonstrated in the shiftings of funds incident to th©
Government financing. Exhibit U shows the monthly totals of debits
and credits to the Federal Eeserve Bank of Cleveland in the gold settlement fund.
Exhibit V is a tabular statement of the applications for fiduciary
powers granted under the provisions of section Ilk of the Federal
Eeserve Act,
THE OUTLOOK.

The conditions at the close of the year in district No, 4 are somewhat uncertain and difficult, by reason of the many complex problems
awaiting satisfactory solution throughout the Nation, and the inevitable adjustments consequent upon the necessary emphasis on
economy, and the concentration of effort upon only those enterprises which are essential to the winning of the war. The outlook
can not be said to be wholly favorable to the continuance of unbridled prosperity therefore; but there is no pessimism as to the outcome, and no disposition to withhold any ounce of energy or sacrifice
that may be called upon. It is evident that the power of service of



374

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

the Federal Reserve Bank of Cleveland may receive a severer test
than any it has yet had; it is also evident that the confidence in the
strength of this institution, as an integral part of the Federal Reserve system under the wise leadership that has been so evident during the past year, is unshakable and well founded. The officers and
directors of the bank welcome the opportunity of service to the utmost, confidently counting upon the continually increasing cooperation of the banks and the people of the fourth district.




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380

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

EXHIBIT A.—Gross earnings, classified, expenses, and net earnings, 1917,

Month.
January...
February..
March
April
May
June
July
August
September.
October...
November.
December.
Total

BilLs
bought
in open
market.

Bills discounted,
members.

United
States securities.

All other
earnings.

$20,558.76 $17,693.35 $24,768.00
22,425.74 15,167.09 11,486.90
19,764 36 15,048.93 10,707.17
12,773.94 22,494.73 11,159.49
23,655.19 26,516.28
9,902.67
28,267.88 22,653.47
6,042.67
29,094.26 19,804.09
5,103.09
51, 709. 62 22,979.42
6,139.90
63,765.62 26,105.75
2,079.48
56,421.88 33,351.16
6,827.76
88,619.75 29,306.82
8,438.52
79,654.58 66,803.33
4,598.59

$2,093.53
3,633.21
5,630.09
7,587. 62
6,145.43
16,118.35
24,740.22
26,261.09
25,779.67
34, 794.80
67,360.98
155.023.91

Total earn- Total ex- Net earnings.
' penses.
ings.
$65,113.64 $12,104.12 $53,009.52
52,712.94 15,152.89 37,560.05
51,150.55 15,207.13 35,943.42
54,015.78 18,177.89 35,837.89
66,219.57 20,214.55 46,005.02
73,082.37 23,006.16 50,076.21
78,741.66 20,731.55 58,010.11
107,090.03 17,048.01 90,042.02
117,730.52 24,933.76 92,796.76
131,395.60 28,244.19 130,151.41
193,726.07 33,250.99 160,475.03
306,080.41 91,233.07 214,847.34

375,168.90 496,711.58 317,924.42 107,254.24 1,297,059.14 319,304.31 977,754.83

EXHIBIT B.—Average earning assets classified, and average rates for the 12
months of 1911 and corresponding months of 1916,
[In thousands of dollars; i. e., 000 omitted.]
1917

Month.

January
February
March .. .
May
June
July
August
September..
October
November .
December

Total
invested
funds.

. .

1916

Bills
Aver- Total Aver- Bills dis- Aver- Bills dis- Aver- bought Average
age invested age counted, age counted, age
rate. funds. rate. mem- rate. mem- rate. in open rate,
bers.
bers.
market.

19,079
20,633
19, 356
21,958
25,904
28,780
28,719
38,649
43, 720
44,611
65,010
93,554

2.84
3.00
2.98
2.81
2.92
3.03
3.18
3.18
3.22
3.29
3.47
3.79

January
February
March
April
May

June
July
August
September
October. .
November
December

6,713
7,593
9,222
11,175
14,551
15,802
18, 4.50
18,306
17,461
18,163
17,576
21,468

2.26
2.71
2.62
2.53
2.44
2.48
2.55
2.60
2.63
2.74
2.72
2.75

1917

1916

Month.

1917

1916

1917

596
1,264
1,816
2,519
1,967
5,245
7,769
8,248
8,695
10,978
21,200
43,105

4.14
3.77
3.65
3.67
3.68
3.74
3.75
3.74
3.61
3.73
3.87
4.24

415
272
254
436
284
277
420
282
598
371
272
1,206

4.59
4.68
4.31
4.10
4.35
4.42
4.26
4.56
4.19
4.49
4.16
3.84

1917

1916

8,718
9,877
7,578
5,025
8,945
10,987
10,935
19, 505
23,976
20,147
31,790
26,175

2.78
2.96
3.07
3.09
3.11
3.13
3.13
3.12
323
3.29
3.39
3.58

1916

Bills
bought Aver- Munici- Aver- Munici- Aver- United Aver- United Average States age States age
age
age
in open rate. pal war- rate. pal war- rate. bonds. rate. bonds. rate.
rants.
rants.
market.
981
976
1,122
1,689
2,613
4,401
6,596
7,052
7,285
6,695
6,884
9,590




1.94
1.93
1.92
1.95
1.99
2.06
2.14
2.25
2.33
2.41
2.41
2.58

1,973
2,670
3,112
2,987
2,891
1,554
1,237
1,075
33
12
12
11

3.40
3.05
3.20
3.21
3.20
3.58
3.63
3.70
3.44
4.62
4.44
4.00

2,816
2,955
3,853
4,869
5,486
4,510
4,781
4,597
2,780
4,219
3,680
2,713

2.97
2.93
2.78
2.55
2.59
2.90
2.85
3.06
3.10
3.27
3.40
3.93

7,792
6S822
6,850
11,427
12,101
10,995
8,778
9,821
11,015
13,475
12,009
24,263

2.66
2.90
2.59
2.48
2.58
2.50
2.66
2.75
2.88
2.91
2.97
3.24

2,501
3,390
3,994
4,181
6,167
6,614
6,653
6,375
6,799
6,878
6,739
7,960

2.57
2,65
2.54
2.56
2.39
2.38
2.63
2.60
2.62
2.65
2.53
2.40

DISTBICT NO. 4

381

CLEVELAND.

EXHIBIT B.—Average earning assets classified, and average rates for the 12

months of 1917 and corresponding months of 1916—Continued.
SUMMARY O F INVESTMENT O P E R A T I O N S .
1917
Daily average of funds employed during year:
Bills discounted, members
Bills discounted, bought
Municipal warrants
United States securities

$425,175.75
4,672,647.68
3,943,462.52
5,692,548.42
14,733,834.37

211,176,105.36
91,109,193. 06
2,949,074. 30
69,707,100. 00

per cent..

$9,531,458.45
15,348,152.44
1,457,325. 80
11.314,574.40
37,651,511.09

,

Total
Total volume of business handled:
Bills discounted, members
Bills discounted, bought
Municipal warrants
United States securities
Total
Average capital
Rate of gross earnings on capital

1910

6,792,429.30
27,542,002.24
10,660,237.45
11,721,160. 00

374,941,472.72
6,433,207.00
20

56,715,828.99
5,982,695.00
7.17

EXHIBIT C.—Statement of condition of the Federal Reserve Bank of Cleveland

at the close of business, Dec. 31, 1917, compared with Dec. 30, 1916.
1917

1916

RESOURCES.

Bills discounted, members
Advances to members on eligible collateral
Acceptances bought
Investments, short-time municipal obligations
United States bonds and securities:
2 per cent bonds (consols and Panamas)
3 per cent bonds, 1918
4 per cent bonds, 1925
:
3 per cent one-year Treasury notes
3 per cent conversion bonds
3i per cent first Liberty loan bonds
*
.
4 per cent second Liberty loan bonds
4 per cent United States Treasury certificates of indebtedness due
June 25, 1918
Total funds employed,
Accrued interest on United S
ued
States securities
Cost of unissued Federal Reserve notes
Furniture and equipment
Expense paid in advance
Due from other Federal Reserve banks
Due from banks and bankers
Deferred debits
Gold coin and certificates on hand
Gold settlement fund
Gold redemption fund
Gold with Federal Reserve agent
Gold with foreign agencies
Legal tender notes and silver certificates
Federal Reserve notes on hand
Other cash and coin
Mutilated currency forwarded for redemption 1
Due from depositary banks and trust companies
Other resources

$37,163,027.27
33,733,150.00
21,111,990.95
7,233.38

$1,006,773.50

473,600.00
2,653,660.00
2,378,200.00
3, 221,000.00
414,800.00
2,027,000.00
320,750.00

2,403,900.00
2,586,560.00
2,369,200.00
618,000.00
1,800.00

50,000.00
103,554,411.60
62,878.48

45,176,685.19
11,792.01
23,162,771.93
29,153,275.00
37,664,000.00
98,800.00
55,369,700.00
4,725,000.00
238,369.00
3,666,525.00
1,081,302.20
866,265.00
68,051,154.98
139,247. 83
373,022,178.22

Total resources.

10,153,694.75
2,684,589.64

21,824. 517. 89
297; 660.08
39 544.25
20; 163.92
934. 76
14,921, 032.18
129; 610. 22
10,417: 595. 49
15, 76i;382. 50
16,953,000. 00
42, 250. 00
10,832, 305. 00
484,417.00
588,935.00
91,816. 77
140,000.00
28,554.65
92,573,719. 71

LIABILITIES.

Capital paid in
Profit and loss
Unearned interest and discount
United States Government deposits
Due to member banks (reserve account)
Due to nonmember banks (clearing account)
Due to other Federal Reserve banks
Deferred credits
Federal Reserve notes outstanding
Treasurer of the United States (special deposit account)
Treasurer of the United States (Liberty loan deposit account).
Other liabilities
Total liabilities.,




iWar loan deposits.

100.00
132,311.58
190, 643. 23
30,578, 247.23
109,724, 561.05
94, 160.59
33,970, 479.80
16,553, 514.19
105,669, 700.00
34,242, 100.00
33,809,054.98
31, 305.57

6,021,800.00
94, 797. 44
37,978.59
974,809. 73
54,586,226.61

373,022,178.22

92,573,719.71

11,263,136.20
8,759,174. 62
10,832,305.00
3,491. 52

382

ANNUAL REPOET OF THE FEDERAL 'RESERVE BOAED.
EXHIBIT D.—Profit

and loss account.
1917

Profit and loss balance Dec. 30,1916
Earnings from—•

1916

$94, 797.44

Bills discounted members
Bills discounted, bankers' acceptances
Municipal warrants
. .
.
Interest earned on United States securities
Profits realized on United States securities
Sundry earnings, including service charge transit department, and
exchange bought and sold

375,169.00
496,711.58
48,131.73
317,924.42
24,260.69

$18,064.41
106,993.11
116,925.13
144,843.65
37,228.53

63,145.30

5,101.50

1,420,140.16

Total

429,156.33

Expenses:
Assessment for expenses of Federal Reserve Board
Cost of Federal Reserve notes issued
Cost of unissued Federal Reserve notes
Premium on United States bonds and securities charged off.
Operating expenses, including amortization of furniture, vault and
equipment and other accounts
Dividend paid
Profit and loss credit balance

25,783.40
72,280.77
18,975.62
209,469.52

5,876.44

185,251.94
143,236.51
94,797.44

1,420,140.16

Total

245,150.97
716,168.30
132,311.58

429,156.33

Percentage of net earnings to average capital:
1916
1917

EXHIBIT E.—Resources of member

3.98
15.2

banks.
Nov. 20, 1917.

Member banks, total resources

Nov. 17, 1916.

$1,985,977,000

$1,498,515,000

1,172,813,000
402,519,000

Deposits:
Demand
Time

930,705,000
235,112,000

COMPARISON OF DEPOSITS OF THE MEMBER BANKS IN THE THREE LARGEST
CITIES IN DISTRICT NO. 4.
Cincinnati.
Cleveland 1
Pittsburgh

$108,893,000
318,680,000
411,214,000
1

$97,411,000
146,409,000
315,130,000

Includes three State banks admitted to membership during 1917.

EXHIBIT F.—Operations in discounts and investments

department.

1917

Bills discounted, members:
Commercial and industrial.
Trade acceptances.
Agricultural and live stock
Rediscounts, secured by United States obligations
Member bank collateral notes, secured by United States obligations
Member bank collateral notes, secured by eligible paper
Total..
Classification by maturities:
Within 15 days
,
16 to 30 days
31 to 60 days
61 to 90 days
Beyond 90 days
,
Total.,
Average rate per cent:
1917

1916



$72,948,095. 22
4, 400,589.19
167,575.28
15,126,195.67

1916

$4,232, 244.04
175,185.26

66,089,550.00
53,444,100.00

2,385,000.00

212,176,105.36

6, 792,429.30

147,846,219.88
26,101,442.96
18, 773,616.49
19,386,885.84
67,940.19

2,288,100.00
3,203,600.00
778,100.00
376,000.00
146,600.00

212,176,105.36

6, 792, 400 00

. 3.29
. 4.25

DISTEICT NO. 4

383

CLEVELAND.

EXHIBIT G.—Discount

rates.

MEMBER BANK COLLATERAL NOTES.
1 to 15 days.
Secured Secured
by
by eligi- United
ble
paper. States securities.

In force—

Jan. 1, 1917..
May 10, 1917.
Sept. 25, 191/
Dec. 1, 1917.

31
3
31
31
REDISCOUNTS—COMMERCIAL

PAPER.

Itol5

In force-

days.

Jan. 1, 1917
Apr. 16, 1917
June 6, 1917..
Dec. 1, 1917..

16 to 30
days.

31 to 60
days.

61 to 90
days.

4
4
4

4i

4J

41

1 to 15
days.

16 to 30
days.

31 to 60
days.

61 to 90
days.

3
31
4

3
31

31
31
4

4
4
4

16 to 30
days.

31 to 60
days.

61 to 90
days.

Beyond
90 days.

4
4
4
41

4\
4
4

41
41

31
31
31
4

41
41
41
41

4

TRADE ACCEPTANCES.
In forceJan. 1, 1917...
Apr 16, 1917
Dec. 10, 1917

AGRICULTURAL AND LIVE-STOCK PAPER.
Itol5
days.

In force—
Jan. 1, 1917..
Apr. 16, 1917.
June 6, 1917.
Dec. 1, 1917..

31
31
31
4

4:V

41

COMMODITY P A P E R .
In force—
Jan. 1, 1917...
Apr. 16, 1917

Itol5
days.

16 to 30
days.

REDISCOUNTS SECURED BY UNITED STATES GOVERNMENT

June 15,1917
Sept. 25, 1917...
Dec. 10, 1917
Open-market purchases of bankers' acceptances:
In forceJan. 1,1917
Dec. 1,1917




Itol5
days.
31
4

31

61 to 90
days.

4
4

f
In force—

31 to 60
days.

41

SECURITIES.

16 to 30
days.

f
4

31 to 60
days.

61 to 90
days.

31
4

.percent. 21 t o 4
d o . . . 3 to 41

384

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
EXHIBIT H.—Bills bought in open market

{acceptances).
1917

Bankers, export and import..
B ankers, domestic
Dollar exchange bills
Foreign trade acceptances
Domestic trade acceptances..

1916

$73,538,033.79
15,195,883.59
64,675.00
1,771,711.82
538,888.86
91,109,193.00

Total.
Classfication by maturities:
Within 15 days
16 to 30 days
31 to 60 days
61 days to 3 months

j
I
|

Total.

"I

$27,237,090.49
304,905.75

27,542,002. 24

3,190,925.72
11,318,356.10
26,055,907.18
50,544,004.06

1,542,425.48
5,788,427.94
20,211,148.82

91,109,193.06

27,542,002.24

Average rate per cent: 1917, 3.23; 1916, 2.29.

EXHIBIT I.—Operations in United States securities, 1917.

Purchased
during
1917.

Sold,
paid, and
converted
during
1917.

$903,900
1,500,000

$66,400
1,230,500

$963,900
2,263,300

3,500,000
67,100

3,500,000

2,586,560
618,000

4,297,000

1,694,000

3,221,000

1,800

1,616,200

1,203,200

414,800

4,645,000

4,645,000

On hand
Dec. 30,
1916.

United States Government 2 per cent consols
United States Government 2 per cent Panamas
United States Government 2 per cent certificates of
indebtedness
United States Government 3 per cent Spanish war loan.
United States Government 3 per cent 1-year Treasury
notes...
United States Government 3 per cent 30-year conversion
"bonds
United States Government 3 per cent certificates of
indebtedness
United States Government 3i per cent certificates of
indebtedness
United States Government 3£ per cent certificates of
indebtedness
United States Government 3i per cent Liberty loan
United States Governent 4 per cent bonds of 1925
United States Government 4 per cent Liberty loan
United States Government 4 per cent certificates of
indebtedness
United States Government 4 per cent certificates of
indebtedness, held under sale and repurchase agreement
Total

2,653,000

124,000

1,460,000
2,280,700
92,700
504,000

1,460,000
253,700
83,700
183,250

2,027,0-30
2,378,200
320,750

15,827,500

2,369,200

EXHIBIT J.—Municipal warrants

15,777,500

50,000

34,000,000
69,711,100

6,000,000
38,151,550

28,000,000
39,539,010

purchased.
1917

Total.
Classification by maturities:
18 to 30 days
31 to 60 days
61 to 90 days
Beyond 90 days to 6 months.
Total.
Average rate of earnings,, per cent:
1917
1916




$6,400
467,200

124,000

7,979,460

City
State...
County.
Other...

On hand
Dec. 31,
1917.

1916

51,803.22
51,105.08

$10,051,988.72
260,028.02
172,845.36
175,375.35

2,949,074.30

10,660,237.45

$2,846,166.00

2,582.50
5,129.16
692,42"/. 16
2,248,955.48

381,633.20
2,221,525.63.
497,590. 02
7,559,488.57

2,949,074.30

10,660,237.45

3.30
% 97

DISTRICT NO. 4

CLEVELAND.

385

EXHIBIT K.—Changes in the reserve position of the bank during the year.
Required (35
per cent).

Month.

$19,883,243.45
20,140,947.75
21,830,493.30
21,687,821.40
25,065,025.00
36,889,015.84
36,708,766.86
39,388,127.89
33,778,158.72
36,779,019.87
46,830,071.96
42,637,220.05

January
February
March
April
May
June
July
August
September
October
November
December

Carried.
$44,595,102.35
41,875,468.60
46,497,955.45
41,690,550.30
48,165,198.00
80,637,413.80
85,612,601.80
90,415,959.50
72,264,790.85
80,024,672.10
90,934,366.65
71,780,815.85

Per cent.
78.5
72.8
74.5
67.2
67.2
76.5
81.6
80.3
74.8
76.2
67.9
58.9

Excess.

Per cent.

$24,711 858.90
21,734, 520.85
24,667, 462.15
20,002, 728. SO
23,100, 173.00
43,748, 397.96
48,903, 834.94
51,027, 831.61
38,486, 634.13
43,245, 652.23
44,104, 294.69
29,143, 595.80

43.5
37.8
39.5
32.2
32.2
41.5
46.6
45.3
.39. 8
41.2
32.9
23.9

EXHIBIT L.—Member banks, district No. Jf.
Number of member banks, Dec. 31, 1916
New national banks organized
State banks and Trust companies admitted

753
2
12

Closed by Comptroller of the Currency
Liquidated

1
2

Number of member banks Jan. 1, 1918
Distribution :
In reserve cities
In other than reserve cities

3
764
50
714

Total

7G4

Total capital stock Dec. 31, 1916
•Stock allotted member banks for quarter ending—
March 31, 1917
June 30, 1917
Sept. 30, 1917
Dec. 31, 1917
Total
Stock surrendered quarter ending—
Mar. 31, 1917
June 30, 1917
Sept. 30, 1917
Dec. 31, 1917
.
Total capital stock Dec. 31, 1917

""$12, 043, 600
$145,500
326,900
431, 300
3, 135, 900

4, 039, 600
16, 083, 200

10,400
11, 600
6, 100
2,900
.

Total paid-up capital stock Dec. 31, 1916
Subscriptions paid in quarter ending—
Mar. 31, 1917
June 30, 1917
Sept. 30, 1917
Dec. 31, 1917
Total
Cash subscriptions refunded for surrender of stock quarter ending—
Mar. 31, 1917
June 30, 1917
Sept. 30, 1917
Dec. 31, 1917
Total paid-up capital stock Dec. 31, 1917




767

31, 000
16, 052. 200
6, 021, 800

72 750
163 450
215', 650
1,567,950

2,019,8008, 041, 600

5,200
5,800
3, 050
1,450
.__

15, 500
8,026,100

386

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

EXHIBIT M.—Accommodation of member banks through discount of paper.
Banks
accommodated.
1917

1916

Applications
handled.
1917

1916

12
102
44
2

Total.

8
32
9
1

70
974
153
9

60
152
26
2

160

Kentucky
Ohio
Pennsylvania
West Virginia

50

1,206

240

Total pieces handled in 1917,14,050; in 1916,1,401.
Amount of smallest note or bill rediscounted, $28.85.
Amount of largest note or bill rediscounted, $13,500,000.
EXHIBIT N.—First Liberty

loan of 1917.
Subscriptions.

Class A, $50 to $10,000
Class B, $10,050 to $100,000.
Class C, $100,050 to $250,000.
Class D, $250,050 and u p . . .

$128,811,700
76,365,950
23,239,300
57,814,050

EXHIBIT O.—Second Liberty

$128,811,700
47,060,450
10,457, 700
16,970,200

286,231,000

Total

203,300,050

loan of 1917.
Number of
Amount of
subscrip- subscriptions.
tions.

EXHIBIT P.—Certificates

Amount.
$268,205,000
200,000,000
200,000,000
200,000,000
300,000,000
250,000,000




Allotment.
$14,000,000
15,000,000
10,800,000
19,100,000
33,592,000
24,157,000

of

$172, 996,050
79,545, 600
48,352, 850
35,487,950
136,598, 800
13,125,550

$172,996,050
79, 545, 600
43,553, 700
26,732, 700
74,398, 850
13,125,550

789, 047

Total

Apr.25
May 10
May 25
June 8
Aug.9
Aug. 28

Allotment.

783,972
2,844
549
218
199
1,265

Class A, $50 to $10,000
Class B, $10,050 to $50,000..
Class C, $50,050 to $100,000..
Class D ? $100,050 to $200,000,
Class E , $200,050 and up
Cash sales

Date of issue.

Allotment.

486,106, 800

410, 352,450

indebtedness.

Date of issue.
Sept.17
Sept. 26
Oct. 18
Oct. 24
Nov. 30

Amount.
$300,000,000
400,000,000
385,197,000
685,296,000
091,000,000

Allotment.
$24,180,000
34,209,000
38,863,000
• 26,471,000
115,230,500

DISTEICT NO. 4

387

CLEVELAND.

EXHIBIT Q.—Rediscounts of paper secured by Government
Member
bank collateral notes
secured by
U. S.bonds
and certifi-

Rediscounts
secured by
U. S. bonds
and certifi-

cates.

May
June
July
August
September

securities.

Rediscounts
secured by
U. S. bonds
and certificates.

Member
bank collateral notes
secured by
U. S.bonds
and certifi-

cates.

cates.

$49 250.00
858,209.25
510,123. 75

$550,000.00
1 957 000.00
2,210,000.00
7,025,000. 00
9,018,000.00

October
November
December

$7,542.50 $12,885,000.00
8,594,833.03 13,574,250. 00
5,106,237.14 18,870,300.00

Total

15,126,195. 07 66,089,550.00

EXHIBIT R.—Government deposits, 1917.
January
February
March
April
May
June

$1, 216, 035. 12
712, 815. 21
3, 913, 251. 22
6, 597, 627. 26
5, 182, 731. 99
3, 293, 614. 65

July
August
September
October
November
December

18, 272, 174. 61
11, 136, 745. 93
6,499, 959. 71
12, 719, 069. 72
22, 179, 485. 22
30, 575, 641. 65

EXHIBIT S.—Federal Reserve notes.
COVER OF NOTES ISSUED.
Gold coin and certificates
United States Treasury gold order certificates
Gold redemption fund with United States Treasurer
Credit balance with Federal Reserve Board
Paper held as collateral for Federal Reserve notes (actual amount, $51,254,883.29) required...
Total

$5,804,545
9,110,000
5,455.155
35,000,000
50,300,000
105,669,700

DENOMINATIONS OF FEDERAL RESERVE NOTES ISSUED, DESTROYED, AND OUTSTANDING, NOVEMBER, 1914, TO DECEMBER 31, 1917.
Issued.

Denomination.

$2,672,250
2,931,940
2,934,860
299,250
152,000

$8,947,750
23,708 060
51,865,140
15,700,750
5,448,000

114,660,000

Total

Outstanding.

$11,620,000
26,640,000
'54, 800,000
16,000,000
5,600,000

Fives..
Tens .
Twenties
Fifties
Hundreds

Destroyed.

8,990,300

105,669,700

Returned for destruction by Federal Reserve agent
$720,000
Returned for destruction by other Federal Reserve banks
781,955
Returned for destruction by Treasurer of the United States and Federal Reserve Bank of
Cleveland
8,008,345
Total

8,910,300
FEDERAL RESERVE NOTES RECEIVED AND RETURNED.

(Amounts of Federal Reserve notes received from other Federal Reserve Banks for redemption or credit
and returned to other Federal Reserve banks for redemption or credit by the Federal Reserve Bank of
Cleveland for the period Jan. 1 to Dec. 31,1917.)
Exchanged with Federal
Reserve Bank o—
f
Boston
New York...
PhiladelphiaRichmond. . .
Atlanta
Chicago
St. Louis




Received
from.

Returned
to.

$352,900
1,720,700
835,000
133,950
282,150
1,178,650
226,705

$36,415
1,216,800
247,995
100,600
72,180
418,040
183,020

Exchanged with Federal
Reserve Bank o—
f

Received
from.

Returned
to.

Minneapolis..
Kansas City..
Dallas
San Francisco

$51,500
25,000
299,640
69,545

$116,030
66,740
39,410
36,840

Total...

5,175,740

2,534,070

388

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
EXHIBIT T.—Clearings, 1911.

Daily average.
Number of
items.

January
February..
March
April
May
June
July
August
September.
October
November.
December..

435,384
377,911
454,580
434,129
471, 797
492,316
463, 713
469, 594
522, 431
573, 698
585y 016
620,591

Amount.

Number of
items.

$218, 777,981.82
186,342,030.19
236,308,813.73
248,982,095.96
299,213,801.47
355,994,450.53
379,309,461.52
368,449,776.41
338,747.136.48
412,879,353.88
434,818,454.55
452,233,367.85

16,745
16,431
16,836
17,365
18,146
18,935
18,548
17,392
20,897
21, 248
22,500
24,824

Total number of items handled
Total amount handled
Disbursements, Transit Department
Cost per item handled
Cost per §1,000
Service charge per item
EXHIBIT TL-

Amount.
$8,414,537.76
8,101,827.40
8,752,178.28
9,959,283.83
11,508,223.13
13,692,094.25
15,172,378.46
13,646, 288.01
13,549, 885.45
15, 291,827.92
16, 723, 786. 71
18, 089,334. 72

5,901,160
$3,932,056,724.39
$83,491.93
cents..
1.41
do
2.12
do
1.5

-MontMy totals of debits and credits to the Federal Reserve Bank
of Cleveland in the gold settlement fund.
Debits, 1917.

January
February..
March..!...
April
May
June
July
August
September.
October
November.
December..

Credits, 1917. Debits, 1916. Credits, 1916.

$77,036, 000
71, 849,000
105, 615, 000
96,190,000
170,168,000
176,745,000
203,455,600
233, 538, 000
177,293,000
206,495, 800
338, 084, 000
334,888,500

Total.

$67,437,000
72,001,000
103,575,000
101,785,000
164, 707,000
155, 822; 000
206,037,000
223, 541,000
193,568,000
199, 039,300
325, 077, 600
358,057, 000

2,191,357,900

2,170,64.6,900

$4, 868,000
4,163, 000
8, 290,000
6,440,000
8,418,000
11,904,000
12,714,000
32,241,000
41,021,000
50,245, 000
57,217,000
70,908,000
308,429,000

Balance Dec. 30,1916..
Balance Dec. 31,1917..

$5,356,000
4,346,000
6,368,000
4,367,000
11, 919, 000
12, 030, 000
13,822,000
30, 773,000
43, 219,000
49,017,000
65,162, 000
67,903, 000
314,340,000
. $16,953,000
. 37,664,000

EXHIBIT V.—Fiduciary powers granted.

Powers granted.




Total
Penn- Ken- West
granted
syl- tucky. Vir- Total. since
vania.
organiginia.
zation,
1

coco

Trustee only
Registrar of stocks and bonds
Trustee and registrar of stocks and bonds
Trustee, executor, administrator, and registrar of
stocks and bonds .
Total

Ohio.

1
6

1

I
1

1
3
3
t
8

6
5
11
7
29

DISTRICT NO. 5—RICHMOND.

CALDWEIL HARDY,

Chairman and Federal Reserve Agent.

This bank, with the other Federal Reserve Banks, as well as member banks of the entire system and country, has been called upon to
extend its activities over a wide field in the service of the Government in the floating of bonds and certificates of indebtedness and in
the handling of extensive national financing.
This country's entrance into the wrar necessitated the immediate
raising of large sums of money, followed as early as practicable by
more permanent financing. Under the war bill passed in April the
early financing, as well as the later interim financing between bond
issues hereafter referred to, was effected by certificates of indebtedness. The following table will give particulars as to these issues of
certificates of indebtedness, showing the amount subscribed for and
allotted in this district. The response in the district in subscriptions
to these certificates was prompt and generous, particularly so when it
is taken into consideration that the money was required largely
during the crop planting and raising period, during which money
is always particularly in demand.
Certificates of indebtedness.
Maturity.

Date.

Mar. 3 1 .
Apr. 25
May 10
May 25
JuneS
Aug. 9
Aug. 28
Sept. 17
Sept. 26
Oct. 18
Oct24

1917

Nov. 30




June 29.
June 30..
July 17..
July 30..

1917.

.do..

Nov. 15
Nov. 30
Dec. 15
do
Nov. 22
Dec. 15
June 25

Amount
offered.

150,000,000
200,000,000
200,000,000
200,000,000
200,000,000
300,000,000
250,000,000
300,000,000
400,000,000
300,000,000

0)

Rate. Subscription. Allotment.
Pr. ct.
2
3
3

3-t
^

34

31
4
4
4

.

$2,000,000
5,850,000
2,753,000
2, 768,000
4,027,000
3,400,000
8,932,000
3,180,000
7,004,000
8,323,000
11,472,000

1918.

S2,000,000
5,850,000
2,753,000
2,000,003
3,601000
2,800,000
7,235,000
.3,180,000
7,004,000
8,323,00(1
11,472,000

i Limited amount.

2,415,000

2, 415,000

62,124,000 j

4

58,632,000

389

390

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Payments for the above certificates were made through this bank
with remarkable facility and without disturbance to the finances of
the district.
Following the early temporary financing through certificates of
indebtedness, came the more permanent financing through the first
issue of Liberty bonds. This necessitated a permanent organization
of every force to be availed of in the financial campaign. That
organization took the following form:
GENERAL SCHEME OF THE LIBERTY LOAN ORGANIZATION.

A district committee, with the governor of the Federal Reserve
Bank as chairman, and consisting of the chairmen of the central
Liberty loan committees of the several States.
State committees consisting of members from the various important sections of each State, acting with and through the central
committee located in the capital of each State.
Local committees in all cities and banking places where it was
possible to form such committees, consisting of representatives of
all important industries of the place.
A Liberty loan bureau in each banking institution.
A publicity department connected with each State committee, with
headquarters in the capital of each State.
A speakers' bureau located in the Federal Reserve city—Richmond—operated in connection with the speakers' bureau at Washington.
Each banking institution at the beginning of the campaign was
advised of its proportionate amount of the loan based upon its
resources.
In some cities the State committee divided the State into counties
and a friendly rivalry between the sections was brought about, as
well as a rivalry between the separate banking institutions.
In Richmond all members of the committees were assigned to solicit
subscriptions from the customers of their respective institutions.
Other members of the committees were assigned to the work of
arousing interest on the part of members of their respective organizations as selling agents for the bonds.
The speakers' bureau carried the message through the theaters,
churches, schools, factories, and other gathering places of people.
A ladies' committee was authorized to operate booths in the large
stores in the retail district and enlisted all the women's organizations
of the city. Nearly all the banks adopted a club system for selling




DISTRICT NO. 5—RICHMOND.

391

bonds on the installment plan—payments of $1 cash and $1 each week
thereafter for each $50 bond.
A parade and mass meeting were arranged, the former embracing
many societies and the school children of the city. At the mass meeting the public was invited, and the war situation was ably presented
by one of our United States Senators.
Publicity was obtained by billboards, window hangers, distribution
of circulars, stickers, etc., and a news article daily in each newspaper.
Business houses contributed the advertising space. These same
methods were urged in every locality throughout the district.
The amount of subscriptions asked for to the first Liberty loan
at 3J per cent was $2,000,000,000; the quota expected from this district was fixed at a minimum of $80,000,000 and a maximum of
$100,000,000. The subscriptions amounted to $109,737,100 and the
allotment made was $88,593,650. Payments required were 2 per cent
with subscriptions and 18 per cent on June 28; 20 per cent on July
30; 30 per cent on August 15; 30 per cent on August 30.
While it required a wide and energetic campaign, reaching, so far
as possible, every individual and family in the district, when the
novelty of the appeal is taken into consideration, the large majority
of our population having little or no information in regard to, or
conception of, the necessities or conditions relating to the situation,
the response might well be regarded as remarkable.
The effect of these subscriptions on banking institutions and their
condition, and on the industries and commerce of the district, was
apparently negligible. The bank deposits in the district more than
held their own, and no interests, either agricultural, industrial, or
commercial, suffered from lack of banking accommodations. It may
be asserted with reasonable safety that the actual effect of this
financing was far less than the first estimates placed upon it. It was
manifestly impossible to determine accurately the cause for the
increased banking accommodations asked for during the financing
of these subscriptions, and while this accommodation in amount
represented a considerably increased volume, the amount directly
traceable to the Government financing was relatively limited, and
the whole increase was small compared with the total amount of the
financing.
The second Liberty loan at 4 per cent was offered on November 15.
The quota for this district was fixed at a minimum of $120,000,000
and a maximum of $200,000,000. The amount subscribed for was
$201,212,500 and the allotments $182,581,700. Payments required
were 2 per cent with subscriptions and 18 per cent on November 15;
40 per cent on December 15; 40 per cent on January 15.



392

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The bank's ownership of Treasury certificates and Government
bonds on December 31 amounted to $3,205,450, and operations in
these securities are fully set forth in the following table:
Open-market

operations.

Balance

Securities.

Operations for the vear
1917.

Dec.31,1916.

Purchases,
Liberty Loans:
3i per cent
4 per cent (^second)
Certificates of indebtedness:
2 per cent
3 per eent
:
One-year Treasury notes, 3 per cent
United Stated conversion bonds, 3 per cent
United States consuls, 2 per cent
United States Panamas, 2 per cent

Sales.

$183,800
1,698,950

$140,900
1,657,500

2,000,000

2,000,000

1,392,450
803,000

259,000
1899,000
i 900,100
521,750
237,000

3,262,450

6,699,600

SI, 070,000

Total..
1

Balance
Dec.31,1917.

259,000
900,100
i 999,100
1800,000
6,756,600

$42,900
41,450

1,969,000
915,100
237,000
3,205,450

Conversions.

In addition to this, the bank held on December 31 member bank
collateral notes to the amount of $4,170,060 and notes of other parties indorsed by member banks to the amount of $5,294,639, all of
which were secured by United States bonds and certificates of
indebtedness.
Our fiscal agency department having charge of the conduct of Liberty loan operations has required the supervision of several of our
officers and heads of our departments. Twenty additional employees
have been permanently engaged in this work, and 27 more added to
the general force. In addition to this, at the height of the campaign
many others were temporarily employed. Two of the large audit
companies of the city also loaned us many of their expert accountants. The entire expenditure reported for reimbursement in connection with the campaign in the first Liberty loan was $23,700, the
entire amount having been reimbursed to us by the Treasury Department. The total expenditure estimated in connection with the
campaign in the second Liberty loan is about $60,000, some bills not
having yet been put into final shape. None of this has yet been reimbursed to us by the Treasury Department.
The amount of member banks collateral notes and notes of other
parties indorsed by member banks and secured by United States
bonds and certificates of indebtedness reached nearly $9,500,000 on
December 31. This indicates the growing extent to which the bank
has been called on to extend assistance up to this date in financing
bond subscriptions. The natural inference is that as the final payments become due on the last subscriptions and further anticipated
issues are offered to the public, the bank will continue to play an
increasingly important part in the loans. Increased efforts will con-




DISTEICT NO. 5

393

RICHMOND.

tinue to be necessary to distribute bonds among private investors
in order that excessive demand upon the resources of the bank and
its members may be minimized as far as possible, and interference
with the process of supplying the regular demands through commercial channels be avoided.
BANK ACTIVITIES DURING THE YEAR.

The increase in member banks' deposits (reserves) from
$25,000,000 to $45,000,000, partly due to a change in the law affecting
reserve requirements and partly to the expansion of members' own
deposits, coupled with the growth in loans and bills purchased from
$7,000,000 to over $42,000,000, are striking illustrations of the growth
of wealth and the volume of business within the district. Our loans
have been confined entirely to the district except a purchase of
$5,000,000 short-time bankers' acceptances from one of the other
Federal Eeserve Banks. The increase of something over $300,000
in capital stock is due chiefly to subscriptions from important State
banks and trust companies which have recently joined the system,
and to substantial additions to surplus of several member banks.
The following comparative balance sheet of the bank, as of December 31, 1916 and 1917, shows a growth of nearly $100,000,000 in
its resources between the dates mentioned:
Comparative balance sheets (condensed).
Dec. 31, 1917.

Dec. 31, 1916.

ASSESTS.

Cash:
Gold reserve
Legal tender, silver, etc

$24,532,111.00
64,938.40

562,342,094.05
164,264.85

62,506,359.50
Total reserve
597,613.72
Other cash and cash items.
Total cash
$63,103,973.22
Depository banks (see contra-U. S. Treasurer special)
24,424,683.36
Transit items (deferred— net)
2,395,561.04
Overdrafts
50,074.18
Productive assets:
Loans and bills purchased
42,812,846.02"
Municipal warrants
United States securities
"3* 205* 450." 00
Par values
46,018,298.02
Deduct:
Reserve for depreciation
$50,000.00
Unearned discount,
etc
100,204.38
150,204.38

Liquid values
Real estate, furniture, and equipment
Deferred charges




,
,

309,065.24
43,221.74

$26,305,157.27
179,491.01
5,078.43
7,213,968.08
60,750.00
3,262,450.00
10,537,168.08

20,310.96

45,868,091.64
21,575.24

Add accrued interest receivable

24,597,049.40
1,708,107.87

10,516,857.12
4,033.20
45,889,666.88
352,286. 98
136,216,245.66

133,475.77
14,034.57

10,520,830.32
147,510.34
37,158.127, 40

394

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
Comparative balance sheets

{condensed)—Continued.
Dec. 31, 1916.

Dec. 31, 1917.
LIABILITIES.

Deposits:
United States Government
Members...
. .
Cashier's checks, etc .. .
United States Treasury, special (see, contra, depositary banks)
Other Federal Reserve Banks (net)
Federal Reserve notes outstanding (net)
Liability to shareholders:
Capital stock.
Surplus
Undivided profits

$2,253,761.15
45,356,855.67
192,256.97

S3,059,731.73
25,450,515.49
2, 718.22
147,802,873. 79

528,512,965.44

24,424,683.36
3,644,461.78
56,563,805.00

1,457,347.26
3,830,000.00

3,663,950.00
116,471.73

3,346,150.00
11,664. 70
3,780,421.73

3,357,814.70

136,216,245.66

37,158,127.40

The expense account of the bank is set forth in the following
table:
Comparative expense accounts {exclusive of transit

expense).
1917

Current:
Federal Advisory Council
Assessment Federal Reserve Board expense.
Directors—
Fees
Per diem allowances
Traveling expense
Legal
,
SalariesOfficers
Clerical staff
Watchmen
Miscellaneous
Traveling
Conferences—
Governors
Federal Reserve agents
Telephone
Telegraph

1916

$431.60
14,255.60
3,020.00
1,230.00
1,806. 49
500.00

1,444.78
2 320.89
391.31
225. 79
3,408. 91
779.71
6,034.00

141, 094. 62
62, 529.60
54, 161 45

104, 257 .94
18, 247 .82
713. 95

257,785.67
i Credit.

31,427.97
26,789.12
648.33
1,774.23
406. 93

336. 78
i 68.37
685.33
657.22
5,209.57
4,115. 55
5,807.00
2,629.24
2,202.16
820.14
9,723.02
11,295.63
4,683.25

Total..

3,760.00
1,840.00
2,505.38
1,425.00

33,199.96
35,303.55
700.00
1,882.23
668.67

Expressage
Rent (including outside vaults).
Taxes and fire insurance
Fidelity insurance
Light, heat, and power
Printing and stationery
Repairs and alterations
Miscellaneous
Total current
Cost of Federal Reserve notes
Depreciation of building and equipment.,

$150.00
11,743.48

126,219.71

1,498.85
901.11
3,576.79
44.78
3,160. 58

2 Debit.

While expenses show large increases, gross earnings for the year
show an increase from $312,000 to $770,000, productive assets from
$10,500,000 to $46,000,000, and net earnings from $186,000 to $462,000.
The current expense increases are only moderate when the increased volume of business is taken into consideration. The major
increases were for repairs and alterations of $11,000 to the building
purchased for the use of our Baltimore branch, to be opened early



DISTRICT NO.

395

-BICHMOND.

in 1918. Federal Reserve notes outstanding have increased during
the year from $20,000,000 to $60,000,000, and the increased cost is
$44,000. Depreciation on building and equipment for the year of
$54,000 represents depreciation in the property purchased for our
proposed new building facing Capitol Square, the old buildings on
the property having been removed. I t also includes equipment
(adding and printing machines, typewriters, etc.), and a portion of
the cost of a new vault of moderate size in our present quarters. The
removal of this vault to the new building when erected is contemplated.
The details of comparative profit and loss accounts for this and the
previous year are shown in the following tables:
Comparative profit and Joss accounts, dividends, and undivided
1917

Gross earnings:
On loans and investments .
Profits on United States securities sold
Service charges (net over transit expense)
Penalties for deficiencies in reserve
Miscellaneous
Deduct—
Expenses
Reserve for depreciation

profits.
1916

$716, 340.78
16, 711.75
4, 386.69
31, 362.02
1, 207.69

$286,697.84
12,527.84
1,033.17
12,390.39
142.25
$770,008.93

$312,791.49
126,219.71

257, 785.67
50, 000.00
307,785.67

186,571.78
23,015.26

473,887.96

Dividends paid:
1 per cent—Nov. 16,1914, to Dec. 31,1915
6 per cent—Jan. 1, 1916, to Oct. 31, 1916
6 per cent—Nov. 1, 1916, to June 30, 1917
6 per cent—July 1, 1917, to Dec. 31, 1917

126,219.71

462,223.26
11,664.70

Net profit for the vear
Balance in undivided profits Jan. 1

209,587.04
30,387.65
167,534.69

135, 690. 71
105, 253. 79
240,944. 50

Balance
Deduct—
Franchise tax paid to United States
G overnment
Carried to surplus account

197,922.34

232,943. 46

11,664. 70

116 471. 73
116, 471. 73
232,943.46

Balance of undivided profits, Dec. 31

11,664. 70

This indicates that after charging off liberally on our building
site, equipment, etc., paying dividends to our members in full at 6 per
cent to December 31, and laying aside a reserve for depreciation, there
remained $232,943 of undivided profits. The Federal Reserve Act
provides that, after the payment of expenses and dividends in full
to date, all remaining earnings shall be paid to the United States
as a franchise tax, except that one-half of such earnings shall be paid
into a surplus fund until it amounts to 40 per cent of the paid-in
capital stock of the bank. Under this provision of the law one-half
of the above earnings—$116,471—has been carried to surplus account
and the other half paid to the United States Government as a franchise tax.
34365°—18
26



396

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The following table giving the daily averages of member banks'
deposits and of United States Government deposits for 1916-17 will
be of interest and give evidence of the growth of banking resources
in the district:
Deposits—Daily averages by months; 1917 compared with 1916.
Member banks.

United Statc-3 Government.

Month.
1916

1917
January
February
March
April
May
June
,
July
August
September.
October
November
December
Year

$26,023,
$26,023,616.67
25,719,944.94
26,255,281.88
25,649,251.37
25,600,111.52
28,290,347.84
33,950,883.34
37,060,405.42
36,922,969. 42
40,217,988.13
42,282,302.89
43,673,086.54
31,704,938.90

1917

$11,199,805.77
11,483,882.66
11,545,076.04
11,536,144.10
13,249,437.88
14,901.902.86
15,956,127.43
16,330.973.91
16,615,271.11
20,013,963.91
23,466,288.63
25,486,796.81
15 999,616.04

$1,940,979.43
1 460,930.46
4,086,850.04
1,188,082.41
3,468,857.52
7,979,110.88
10 375.597.34
5,148,718.32
3,310,445.18
3,466,750.03
11,646,835.94
11 607,529.73
5,524,462.85

1916
So, 658,432.64
6,328,866. 43
6,420,260.32
6,875,443.03
6,346,514.23
7,191,234.53
0,671,597.44
3,320,534.36
2,988, 816. 83
3,594,049. Dl
2,921,533.37
2.845,368. 45
5,014,378.72

This growth of business is further illustrated by the following
table showing the volume of discounts of over $100,000,000 during
the current six months. Bankers' acceptances to the amount of $58,000,000 were purchased in addition to these discounts.
Discounts during the year 1917.
Maturities as of date of acquisition.
15 days and
less.
$104,652,137.05
Notes
Member banks'
collateral notes.. 245,024,635.04
108,166. 29
Trade acceptances.
546,212.04
Commodity paper.
Bill of lading drafts 1,747,294.11

Total

16 to 30

days.

31 to 60

days.

61 to 90
days.

Over 90
days.

Total.

$8,233,035.22 $16,006,334.97 $19,162,471.99 $1,295,537.41 $149,349,516.64
'*4i7,'566.99" "i,"229,"72L65"
1,019,084.71 1,437,422.62

"i," 405," 666." 35*
683,365.71

352,078,444.53 9,669,680.92 18,673,479.24 21,250,838.05 1,295,537.41

245,024,635.04
3,160,449. 28
3,686,085.08
1,747,294.11
402,967,980.15

Of this total over one-half is represented by member banks' collateral notes having less than 15 days to run. This illustrates the
importance of the facilities extended member banks for short loans.
The handling of large transactions, necessitating frequently the temporary use of large sums, is economically facilitated by means of
these short loans.
The moderate rates at which these large transactions have been
handled are set forth in the following table and are a further illustration of the liberal facilities extended to members bv the bank.



DISTKICT NO. 5

397

RICHMOND.

Discount rates current for the year 1911.
Effective
Jan. 1,
1917, un- Effective Effective Effective Effective
changed Apr. 23, Mav 25, Nov. 5, Nov. 30,
1917.
since
1917.
1917.
1917.
Oct. 1,
1916.

Classification.

Member banks' collateral notes:
Secured by customers' notes
Secured by United States securities
Commercial paper:
15 days or less
16 to 90 days
Agricultural and live stock paper:
15 days or less
16 to 90 days
91 days to 6 months
Notes secured by United States securities-:
15 days or less
16 to 90 days
Commodity paper:
15 days or less
16 to 90 days
Trade acceptances:
60 days or less
61 days to 90 days

il
oh
4

4

3-1

34
4

4

4
4*

3i

3£

3V
3}

3-1

31

3i

4

3}

3t

3j

The following table shows the productive assets acquired during
the year, analyzed as to class and rates. The amount of discounts
held under each rate is shown with the average number of days each
amount has to run. The total of $42,800,000 has an average of only
23 days to run, which gives a forcible illustration of the very liquid
condition in which the bills of the bank are kept.
Productive

assets acquired during the year 1917, classified as to rates.
2 per cent.

3 per cent.

Zl per cent. 31 per cent. 3* per cent.

United States Govern$2,768,750.00 $259,000.00
ment securities
Warrants
30,492,613.73 $2,078,049.37 S3,456,933.96 SI, 537,878.97
Bankers' acceptances.
Commodity paper
Trade acceptances
Bill of lading drafts
Unsecured notes
Notes secured by:
Merchandise
United States securities
Member bank collateral
notes secured by:
United States securities
disjoin

fiT

"f>' TI nfps

Total
Owned Dec. 31,1917:
United States Government securities
Loans and bills
Average unexpired
term in days

3 | per cent.

$638,800.00
115,000.00
18,698,692.81
3,566,960.08
2,492,327.34
755,058.48
10,543,950.43
2,500.00
24,049,078.01

30,313,922.05
206,108,999.99

2,768,750.00 30,751,613.73 2,078,049.37 3,456,933.96 1,537,878.97 297,2So, 289.79

1,152,100.00 1,969,000.00




1,332,840.58
26

100,000.00
36

42,900.00
590,521.36 18,248,155.93
21
23

398

ANNUAL REPORT OF THE FEDEBAL RESERVE BOARD.

Productive assets acquit cd during the year 1911, classified as to rates—Continued.
3| per cent. 3* per cent.
United States Government securities
Warrants
Bankers' acceptances
$454,510.27 $1,397,380.87
Commodity paper
Trade acceptances
Bill of lading drafts
Unsecured notes
1- -- - - Notes secured by:
Agricultural products
Live stock
Merchandise
United States securities
Member bank collateral notes
secured by:
United States securities
Customers' notes
Total
Owned Dec. 31,1917:
United States Government
securities
Loans and bills
Average unexpired term
in days

4 per cent.

4$ per cent.

$2 305,950.00
ii9,"i25*66
668,121.94
992,235.63
106,434,776.64 $5,836,430.80
275,461.58
6,980.89
10,000.00
1 890,490.53

299,847.16

Total.

$5,962,500.00
115,000.00
58,116,059.98
3,686,085.08
3,160,449.28
1,747,294.11
122,815,157.87
575,308.74
6,980.89
12,500.00
25,939,569.14
30,313,922.05
214,710,712.99

8,601,713.00

454,510.27

1,397,380.87

121,304,855.21

6,136,277.96

467,161,540.13

191,727.05

1,397,380.87

41,450.00
16,575,520.39

4,370,699.84

3,205,450.00
42,812,846.02

17

61

13

39

23

The volume of paper handled is almost wholly determined by the
terms of the paper, whether of short or long maturities, and the
following table will show7 daily averages of outstanding bills for the
entire year, and will indicate the average continuous service
rendered.
Daily averages of productive assets for the year 1917.
Classification.
United States securities
Agricultural products
Live stock
Merchandise

Trade
Commodity. acceptances.

$402,623.93

Bankers' acceptances.
Foreign.

Domestic.

Member
bank
collateral
notes.
$608,293.24

$8,521.18

2,248,983.37

Nonmember bank
Total collateral
Unsecured

402,623.93

8,521.18
406,737.89

$5,017,198.22

$1,218,258.46

Total loans
Warrants
United States bonds

402,623.93

415,259.07

5,017,198.22

1,218,258.46

2,857,276.61

402,623.93

415,259.07

5,017,198.22

1,218,258.46

2,857,276.61

Grand total

2,857,276.61

Held by
Classification.

Notes.

United States securities
Agricultural products
Live stock
Merchandise
•
.......

1538,928.86
71,658.56
1,306.17
2,732.90

United States
bonds and
investments.

Combined

Federal
Reserve
agent.
$1,147, 222.10
432,645.09
1,249.73
2,595.90
1,361,328.85
19,396.05

$50,158.58
56.44
137.00
887,654.52

Bank.

19,396.05

$1,147,222.10
482,803.67
1,306.17
2,732.90
2,248,983.37
19,396.05

Total collateral
Unsecured

634,022.54
6,410,846.15

3,902,444.26
13,053,040.72

2,964,437.72
12,526,260.52

938,006.54
526,780.20

Total loans
Warrants
United States bonds

16,955,484.98
15,791.78
"""ii5,*79i."78"
3, 672,427.81 3.672,427.81
7,044, 868.69 3,688,219. 59 20,643,704.57

15,490,698.24

1,464,786.74
15,791.78
3,672,427.81

15,490,698.24

5,153,006.33

Nonmember bank

Grand total




7,044,868.69

DISTRICT NO.

399

-RICHMOND.

The productive assets owned December 31, 1917, are again analyzed in the following table, which gives the volume of paper maturing within 15 days and later maturity periods, from which it will
be seen that over $24,000,000 out of the total of $42,000,000 had less
than 15 days to run at the close of business December 31. This gives
another forcible illustration of the extreme liquidity of the larger
portion of the bank's paper.
Analysis of productive assets as of close of business Dee. 31, 1917.
Bankers' acceptances.
Commodity.

Trade
acceptances.

Foreign.

Domestic.

Member bank
collateral
notes.

CLASSIFICATION.

Ignited States securities
Agricultural products...
Total collateral

$4,171,060.00

$97,400.00
97,400.00

Unsecured

4,171,060.00
$1,057,053.93

$8,935,465. 95 $4,220,660.76

Total loans

97,400.00

1,057,053.93

8,935,465.95

4,220,660.76

4,171,060.00

Grand total

97,400. 00

1,057,053.93

8,935,465.95

4,220,660.76

4,171,060.00

15,150.00
41,500.00
40,750.00

231,346.50
260,327.35
437,722.37
127,657.71

1,812,773.36
4,104,215.69
1,728,437.26
1,290,039.64

1,186,947.43
554,686.00
1,689,568.21
789,459.12

4,171,060.00

97,400.00

1,057,053.93

8,935,465.95

4,220,660.76 I 4,171,060.00

United States
bonds and
investments.

Combined.

MATURITIES.

Within 15 days
16 to 30 days
31 to 60 days
60 to 90 days..
Grand total

Notes.

Federal
Reserve agent.

Bank.

CLASSIFICATION.

United States securities
Agricultural products
Bill of lading drafts
Nonmember bank

$5,294,639.88
291,070.16
92,344.97
707,956.00

$9,465,699. 8S $9,465,699. 88
388,470.16
388,470.16
92,344.97
92,344.97
707,956.00
707,956.00

Total collateral
Unsecured..

6,386,011.01
17,946,194.37

10,654,471.01
32,158,375.01

10,654,471.01
32,158,375.01

Total loans
United States bonds..

24,331,205.38

42,812,846.02
3,205,450.00

42,812,846.02

$3," 205,450.'66

Grand total

24,331,205.38

3,205,450.00

46,018,296.02

42,812,846.02

3,205,450.00

16,967,056.89
1,244,820.00
4,965,373.47
1,141,207.52
12, 747. 50 3,205,450.00

24,384,334.18
6,205,549.04
8,861,851.31
3,348,363.99
3,218,197.50

24,384,334.18
6,205,549.04
8,861,851.31
3,348,363.99
12,747.50

3,205,450.00

24,331,205.38

46,018,296.02

42,812,846.02

3,205,450.00

$3,205,450.00

MATURITIES.

Within 15 days
16 to 30 days
31 to 60 days
60 to 90 days
Over 80 days
Grand total

3,205,450.00

The following table compiled by quarters gives the volume of
paper in pieces and by amount, the daily average, the annual rate
earned, the amount of discount earned during each period, and the
rebates on anticipated payments with the resulting earnings.



400

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD,
Productive

assets icitli earnings and averages, 1917.
Volume of investment
operations.

Annual
rate

Daily averages, holdings.

Days income
in
on
period.

Quarterly periods, 1917.
Items.

earned
tual).

Items. Balances current.

Amount.

3,345
7,236
7,990
5,215

Total

$33, 679, 716.17
81,446,432.97
123,044, 054. 72
228,991,336.27

37
80
87
56

$11,818,978.88
19,117,894.00
21,289,594.24
30,139, 924.38

90
91
92
92

3.28
3.17
3.54
3. 63

23, 786

Jan 1 to Mar. 31.
Apr. 1 to June 30..
July 1 to Sept 30
Oct. 1 to Dec. 31

467,161,540.13

65

20,643,704.57

365

3.47

Discount and interest.
Quarterly periods,
1917.

AnMiniEarned
mum
(actual). charges. ticipations.

Sundry profits.
Total
earnings
Profits on Penalties
of
sales of
for
MiscelUnited deficiency laneous. product! VQ
assets.
States
in
securities. reserve.

Total.

Total

$94,675.06
153,075.82
191,954.81
275,879.68

5.56
9.72
8.71
4.11

95.33
104. 62
203.00
324.36

$94,775.95 $16,711.75 $5,982.70
5, 793.43
153,190.16
8,153.79
192,166. 52
11, 432.10
276,208.15

715, 585.37

Jan. 1 to Mar. 3 1 . . . .
Apr. 1 to June 30
July 1 to Sept. 30....
Oct. 1 to Dec. 31

28.10

727.31

716,340.78

$58.18
138. 96
415. 81
594.74

$117, 523.58
159,122. 55
200, 736.12
288, 234. 99

16,711.75 31,362.02 1,207.69

765, 622.24

This includes penalties which we are compelled under the law to
charge members for deficiencies in reserve, and we would urge members to give this matter careful consideration. Demands for funds
can be much more economically met by rediscounting at our moderate
current rates than by impairing reserves, thus creating deficiencies
on which we are required to charge 2 per cent above the current rate
for 90-day paper, but not less than 6 per cent per annum.
The productive assets are again analyzed by quarters in the following table, giving distribution by States, and showing the number of
banks in each State accommodated at each different period.
Productive assets acquired—Distribution
Jan. 1 to Mar. 31.
Banks.
Marvlsiid.
District of Columbia
Virginia
West Virginia
North Carolina

South Carolina
Other Federal Reserve Banks.
Discounts and bills purchased.
Warrants purchased.. .
United States securities purchased
Total



12
3
20
1
30
42

Amount.

by States, 1917,

Apr. 1 to June 30.
Banks.

Amount.

$9,080,017.27
648,951.65
11,099,707.69
3,900.50
5,160,343.11
4,913,046.45

17 $21,525,542.79
4
701,954.17
44 45,146,407.24
10,200.00
7,122,200.02
48
6,681,128. 75
54

30,905,966.17
15,000.00

Banks.

81,187,432.97

33,679, 716.17

17
4
48
3
49
56

168

81,446,432.97

Amount.
$23,307,621.93
1,116,057.16
81,967,017.92
267,148.31
8,152, 249.12
7, 629, 760. 23
122, 439, 854. 72
100,000.00

259,000.00

2,758,750.00
108

July 1 to Sept. 30.

504,200.00
177

123,044,054.72

DISTRICT NO. 5

RICHMOND.

Productive assets acquired—Distribution

l)y States, 1917—Continued.

Oct. 1 to Dec. 31.
Banks.
Maryland
District of Columbia
Virginia...
West Virginia
North Carolina
South Carolina
Other Federal Reserve Banks

31
6
54
9
37
29
1

Discounts and bills purchased.
Warrants purchased
United States securities purchased
Total

Amount.
$22,837,696.57
1,035,131.91
151,464.357.05
1,533,686.70
13,057,207.44
31,604,760.02
5,017,946.58

Total period.
Banks.

2,440, 550.00
228.991,336.27

Balance as of
Dec. 31.

Amount.

246

$76, 750,878.58
3, 502,094.89
289,677, 489.90
1,814,935.01
33,491,999.69
50,828,695.50
5,017,946.58

$10,239,075.93
437,412.53
18,649,937.43
549,350.64
6,172,265.08
4,505,727.36
2,259,077.00

461,084,040.13
115,000.00
5,962,500.00

32
7
71
11
59
65
1

226,550,786.27

187

401

42,812.846.02

467,161,540.13

46,018,296.02

3,205.450.00

Virginia shows the largest volume of bills discounted, this being
partly due to the fact that our members in Richmond have found it
convenient to avail of, to a large extent, frequent leans running from
1 to 15 days.
The following table on clearing operations gives full details as to
number of items, amounts, averages, and costs:
Clearing operations for the year.
Daily averages,
304 business days.
Number
of items.

Amount.

Number of
items.

Average Equivalent cost per
amount
$1,000, with service charge at 1J
per
cents per item.
item.
Amount.

Total free
On other points in district
No.5
On points in other Federal
Reserve districts

81,040

$24,119,000

266

$79,339

$298

339,677

882,652,100

1,117

2,903,461

2,598

420,717

Government cheques
Through Richmond Clearing
House

906,771,100

1,383

2,982,800

2,157

4,726,700

1,439,595,700

15,548

4,735,512

305

540,863

1,057,582,700

1,780

3,478,890

1,955

No charge made.
"

Do.

4 11/100 cents.
64/100 cents.

Total service

5,267,563 2,497,178,400

17,328

8,214,402

474

2 64/100 cents.

Grand total

5,688,280 3,403,949,500

18,711 11,197,202

599

2 09/100 cents on
grand total.

Disbursements for transit department, $51,186.57. Cost per item on total handled, 0.90 cent. Cost per
item subject to service charge, 0.97 cent. Cost per $1,000 on total handled, 1.50 cents. Cost per $1,000
subject to service charge, 2.04 cents. Service charge per item, 1.25 cents.

This volume of business is constantly increasing, and as our
members are becoming more familiar with our methods, we anticipate
increasingly extensive use of the facilities which wTe offer them.
FEDERAL RESERVE BANK AND MEMBER BANKS.

The following table analyzing capital stock for the year gives
comparison with December 31, 1916, showing additions and reduc


402

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

tions in the number of banks by States, with a resulting membership of 530 as against 520 at the close of 1916, and an increase of
capital from $3,346,150 to $3,663,950:
Capital stock—Analysis for the year 1917.
District
of Co- Virginia.
lumbia.

Maryland.

Balance Dec. 31,1916
Additional allotments on increases of
capital or surplus of members
Reductions on decreased capital or
surplus of members
Additions to memberships during the
year
Liquidations during the year.,

West
Virginia.

North
Carolina.

South
Carolina.

Total.

96J16,065 15 8,09814519,055104 8,463 81 7,570 79 7,672 520 66,923
1,029

26

1,506

233

391

227

3,413

96J17,094 15 8,124 145 20,561 104 8,696 817,961 79 7,899 520 70,336

30
9617,094 1518,124 145 20,561104 8,666
2,160

1,152

87

126

29

185

7,835 79 7,870 520 70,151
21

130 18' 3,549

98 19,254 15js, 124 153 21,713 106 8,753 82 7,856 84 8,000 538 73,700
~~
20
151
22 ~ 421
213
15
19,234 15 8,124 151121,500 103 8,602 81 7,841

Balance Dec. 31,1917....

7,978 53073,279

The number of national bank and State bank stockholders, distributed by States, the amount of stock held in each State, and the
dividends paid thereon are shown in the following table:
Capital stock and dividends.
6 per cent dividends
paid.
50 per cent
of par of
Shares
allotallotted.
From Nov.
From
ments
1, 1916, to July 1 to
Total.
paid.
Dec. 31,
June 30,
1917.
1917.

Number of members.

National.

Maryland
District of Columbia
Virginia
^rest Virginia
North Carolina
South Carolina
Total

95

14
• 147
102
81

State.

2
1
4
1

97

15
151
103
81

78

5

83

517

13

530

961,700
19,234
406,200
8,124
21,500 1,075,000
430,100
8,602
392 050
7 841
398,900
7,978
73,279

3,663,950

33,203.95
16,224.38
38, 772. 56
16,921.05
15 210.44
15,358. 33

26,529.13
12,180.00
30,521.15
12,728.44
11,537.91
11,751.16

135,690. 71 105,253.79

The amendment to the Federal Keserve Act passed in June reduced the reserves required to be carried by member banks to 7 per
cent against demand deposits and 3 per cent against savings accounts,
10 per cent being required in reserve cities against demand deposits,
but all of these reserves are required to be carried with the Federal
Reserve Bank. Banks are not now being required to carry reserves
in their own vaults, but are left free to use their own judgment as
to the amount of their cash needs at home and the character of



DISTRICT NO. 5—RICHMOND.

403

them. Under these conditions, Federal Reserve notes are available instead of legal tender and gold certificates. Member banks and
many State banking institutions have freely sent in gold and gold
certificates, which has caused a largely increased demand for the
use of Federal Reserve notes, and the amount of such notes outstanding increased during the year about $40,000,000.
Relations with member banks have been cordial, and during the
eventful year we have had their loyal support and cooperation.
The effectiveness of the system and the impracticability of doing
without it are universally recognized. I t remains only to bring
about the final establishment of a universal par collection plan
(which will remove the necessity for balances at central points for
the purpose of clearing the numerous State bank items) to round
out the system to the complete satisfaction of all members.
The discount facilities offered by the bank, and the established
fact that these can be relied upon with assurance, have been a general source of confidence to the officers of our member banks, in regard to which we are constantly receiving gratifying expressions.
While the present unusual and in some respects trying conditions
ft re fully recognized, the bygone doubts of the adequacy of our banking facilities have been replaced by a feeling of confidence. We
are glad to express the belief also that there are few cases in which
there is any marked disposition to overtrade; the character of loans
is becoming more varied, better scattered, and therefore more liquid.
Cooperation in the securing of credit statements is increasing, the
necessity for and advantage of obtaining them being more fully
recognized both by the banks and their borrowers.
The irregularity in mails, we regret to report, is more frequent,
due to inadequate postal facilities, aggravated by congested traffic
conditions on the railroads. These facilities, which appear to have
been inadequate in normal times, have been swamped under existing war conditions.
During the year the following banks have been authorized to act
as trustee, executor, administrator, and registrar of stocks and bonds:
First National Bank, Hyattsville, Md.; National Bank of Rising
Sun, Rising Sun, Md.; First National Bank, Appalachia, Va.; First
National Bank, Danville, Va.; Union National Bank, Clarksburg,
W. Va.; National Bank of New Bern, New Bern, N. C.
FEDERAL RESERVE BANK AND STATE BANKS AND TRUST COMPANIES.

On January 1, 1917, we had six State bank members, with aggregate resources of $7,800,000.
The general attitude of State bank officers has apparently been
more friendly than heretofore, evidenced chiefly by a frank admis


404

ANNUAL BEPOBT OF THE FEDERAL RESERVE BOARD.

sion, almost universally, that the Federal Reserve System has been
the salvation of the country—agriculturally, commercially, and
financially—and that the State banks indirectly have been the beneficiaries in this to the same extent practically that members of the
system have shared in it. They say frankly they would be unwilling
to see former conditions restored. Financially, their attitude is that
while they might be willing to come in as members, notwithstanding
some loss of interest which they now get on balances, they are
unwilling to forego the present returns from exchange charges.
They are satisfied to enjoy the stability and prosperity and the
profits arising from such conditions, due to the operation of the
Federal Reserve System, but want to retain every source of profit
which existed under the old system. They admit they want their
items cleared at par. They are carrying at central points for this
purpose considerable balances on which they are receiving a low rate
of interest, whereas, these balances could be more profitably employed in regular loans, provided they could clear all items at par
through the Federal Reserve Bank. Many express a willingness to
become members " if all the others would come in," thus establishing
a universal par clearing plan, but each one hesitates about being the
first and alone in going " over the top." Notwithstanding this, we
have received during the year applications from nine State banks
and trust companies, of which seven were admitted up to December
31, their resources aggregating over $27,000,000.
We have had many inquiries as to membership, have sent out considerable literature on the subject and had lengthy personal discussions and correspondence. We have the assurance of several additional applications, and are discussing membership with others, who
have the matter under consideration. In this connection, with the
approval of the Federal Reserve Board, our board has authorized the
report of examinations of the State banking departments in this
district to be accepted, in connection with the application of State
banks and trust companies for membership. Some institutions which
desire to join are conducting lines of business which are not regarded
as altogether desirable in association with regular banking, and action
as to membership hinges upon the possibility of elimination of these
lines. While the movement for membership is not in such volume as
is desirable, the interest in the question of membership is gratifying
and encouraging.
With reference to the admission of a State bank as a member of
the Federal Reserve system, the Federal Reserve Act provides that—
No applying bank shall be admitted to membership in a Federal Reserve
Bank unless it possesses a paid-up unimpaired capital sufficient to entitle it
to become a national banking association in the place where it is situated, under
the provisions of the national banking act.



DISTRICT NO. 5-—RICHMOND.

405

The limit of minimum capital is fixed by the national banking act
as follows: In cities or towns not exceeding 3,000 inhabitants, $25,000.
In cities or towns exceeding 3,000, but not exceeding 6,000 inhabitants, $50,000. In cities or towns exceeding 6,000, but not exceeding
50,000 inhabitants, $100,000. In cities exceeding 50,000 inhabitants,
$200,000.
Out of approximately 1,500 State banks and trust companies located in the fifth district about 500 are eligible to membership under
this provision of the act. Of the remaining banks about 200 are
sufficiently wTell provided with surplus to enable them to qualify;
under the capital-stock requirement without the contribution of additional capital by stockholders by the simple expedient of transferring
a certain amount from surplus fund to capital stock. We can see,
therefore, that out of the 1,500 State institutions in this district
approximately one-half are qualified or could easily qualify for membership in the system.
While a number of the larger and more substantial State institutions have been admitted to membership, or have applications pending, quite a large number of qualified institutions (or institutions
which could qualify) have not clone so. A number of these institutions, as well as a number of State banks that are unable to meet
the capital requirements requisite for membership, have cooperated
with the Federal Eeserve system, at least as far as the collection
system is concerned, but they are not cooperating in such a way as
to strengthen the resources and increase the lending power of the
system, as they would by participation as full members of the system.
Since many of these institutions are depending upon (member
bank) correspondents with whom balances are carried by them, for a
large part if not all, of the accommodation which they require, and
since these correspondents are in many cases borrowing more largely
from the Federal Eeserve Bank than they would be required to
borrow, were it not for this dependence, the nonmember State institutions are really occupying the position of liabilities rather than
assets of the Federal Eeserve system.
By becoming members of the system they would, through their
capital subscriptions and reserve deposits, increase the resources of
the Federal Eeserve Bank, and add to its strength and lending
power. By remaining out of the system they constitute an element
of weakness in our financial structure instead of adding to its
strength.
FEDERAL RESERVE BANK AND THE PUBLIC.

Our relations with the public through member banks and by direct
contact have been cordial, and on every hand we hear universal expression that the Federal Eeserve system has been a balance wheel



406

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

which has stabilized and aided agricultural and commercial developments and aided in bringing unmeasured prosperity to the district.
The Government and its representatives have the cordial support
and cooperation of every interest in the district, with an increasing
resolution to carry our participation to a successful conclusion in
behalf of world-wide freedom.
FEDERAL RESERVE BANK AND NOTE ISSUES.

The following table gives the interdistrict movement of Federal
Reserve notes for the year, indicating the extent to which these notes
travel abroad throughout the country as illustrated by the amounts
and the district from which they are returned for redemption.
Interdistrict

movement in Federal Reserve notes for tlie year ended Dec. 31,
1917.
Tens.

Frv es.
Federal Reserve Bank o—
f

Received
from.

Returned
to.

Received
from.

Returned
to.

$12,250
197,750
65,500
16, 750
94,750
4,950
6,150
5,250
8,750
6,500
2,610

$82,350
1,155,130
247,000
29,680
304,000
98,000
41,400
4,810
6,990
14,910
111,200

$32,070
345,260
130,640
36,910
100,450
22 230
14,000
26,490
11,990
13,680
1,890

$98,080
1,071,000
280,500
45,660
265,500
106 000
44,380
7,080
5,700
12,940
61,620

$3 980
263,240
126,780
77 640
67,820
30 980
13,000
12,000
12,000
12,920
7,500

1,734,995

Total

421,210

2,095,470

735,610

1,998,460

627,860

Fifties.
Federal Reserve Bank o—
f

Total

Returned
to.

$55 920
1,042,325
185,505
16.810
264,500
72 500
28,100
3,610
4,450
58,580
2,695

Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
St Louis
Minneapolis....
Kansas City
Dallas
San Francisco

Received
from.

Twenties.

Received
from.

..

Hundreds.

Returned
to.

Received
from.

Total.

Returned
to.

$19,750
213,450
57,500
8,350
20 350
29,600
6,600
1,400
1,250
1,900
6,500

$1,200
28,350
11,150
11,400
2,500
13,050
1,000
350
1,400
650
1,300

$7,800
198,400
27,500
600
8,100
5,900
1,600
100
600
1,000
3,000

$1,000
158,500
2,600
2,500
3 000
57,400
100
300

366,650

72,350

254,600

226,400

100
900

Received
from.

Returned
to.

$263,900
3,680,305
798,005
101,100
862 450
312,000
122,080
17 000
18,990
89,330
185,015

$50 500
993,100
336,670
145,200
268 520
128,610
34,250
44 390
34,240
33,750
14,200

6,450,175

2,083,430

The following table gives the denominations and aggregate
amounts of Federal Eeserve notes received since the organization of
the bank, the amounts on hand, and the aggregate amounts returned
to the Comptroller of the Currency for destruction. Over $60,000,000
was in the hands of the public at the close of the year, as compared with



DISTRICT NO.

407

-RICHMOND.

$20,000,000 outstanding December 31, 1916. In accordance with a
suggestion from the Federal Eeserve Board, this bank has authorized
the maintaining of a reserve supply of unissued Federal Reserve
notes at a minimum of $40,000,000 and a maximum of $61,000,000.
Number of Federal Reserve notes, by denominations and aggregate amounts,
received, issued by the bank, and returned to the comptroller since organization and on hand at close of business Dec. 31, 1917.
Number of notes.
Fives.

Tens.

Twenties. Fifties.

Hundreds.

Aggregate
amount.

Received from comptroller
3,388,000 2,564,000 1,336,000 104,000 36,000 $78,100,0^0
Received from Federal Reserve Bank... 280,000
213,500
14,200 2,800
98,250
6,490,000
Received from Treasurer of United
44
States (fit notes)
1,270
220
20
2,860
35,600
Received by comptroller from Treasurer
of United States for destruction and
credit of Federal Reserve agent's account (unfit notes):
' From other Federal Reserve Banks..
7,000
2,475
200,000
16,100
Direct from reporting Federal Reserve Banks and from other sources 1,132,569
494,295
181,431 15,875 2,617 15,289,865
Total
4,819,529 3,280,065 1,618,376 134,119 41,437 100,115,465
Issued to Federal Reserve Bank
3,638,860 2,706,770 1,426,470 110,244 34,820 82,785,600
Returned to Comptroller of the Currency
for destruction, including notes returned by United States Treasurer for
credit of Federal Reserve agent's ac183,906 15,875 2,617
count
1,148,669
501,295
15,489,865
Notes on hand at end of month
32,000
72,000
8,000
8,000
4,000
1,840,000
Total

134,119 41,437

100,115,465

Actually destroyed, per "Washington
certificates
182, 751 15,739 2,599
1,140,917
496, 359J
In hands of public (including Federal
80,261 29,401
Reserve Banks)
2,215,083 1,995, 640* 1,145,249
72,000
4,000
32,000
In hands of Federal Reserve agent
8,000
8,000
Total received from comptroller... 3,388,000 2,564,000 1,336; 000 104,000 36,000

4,819,529 3,280,065

1,618,376

60,889,950
1,840,000

15,370,050

78,100,000

NOTE.—Present cost of Federal Reserve notes:
Per M
pieces.

Per $1,000.

At Washington
Postage to Richmond
Insurance..

$9.14
.81
.53

$0.87
.08
.05

Total... .

10.48

1.00

A supply of Federal Eeserve notes is maintained at the bank in the
custody of the Federal Eeserve agent. These notes are shipped to
him by the Federal Eeserve Board upon his request, are receipted
for jointly by him and a representative of the bank, and are kept
under the joint control of himself and the bank. Under this arrangement, they are always promptly available for use under the provisions of the Federal Eeserve act. Notes and bills discounted held
by the Federal Eeserve agent as security for Federal Eeserve notes
are indorsed by him 10 days in advance of maturity to the Federal




408

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Eeserve Bank for collection for his account, and are accounted for
to him by the bank as they mature.
Federal Eeserve notes have been issued during the year in considerable amounts in exchange for gold, but chiefly for the use of
member banks in exchange for notes and bills discounted for them.
An increase of $4O3OOO,OOO in the amount outstanding is tangible
evidence of the credit facilities extended to member banks, and
through them to the business interests of the district. The abundant
security for these Federal Eeserve notes placed by the bank in the
hands of the Federal Eeserve agent (the representative of the Federal
Eeserve Board) in the shape of notes discounted and gold, makes
them absolutely good, to say nothing of the fact that the Federal
Eeserve notes are the direct obligations of, the Government, The
law provides that the amount of gold held as reserve for these notes
shall be not less than 40 per cent, and the bank is always, therefore, in a position promptly to redeem its notes whenever they are
presented.
INTERNAL MANAGEMENT OF THE BANK,

The growth in the transactions of the bank has necessitated during
the year an increase in the number of officers, members of the staff,
and other employees from 63 to 110, and even with this increase, it
has been necessary for a large majority of the officers, staff, and force
to work overtime. This has involved constant night work for weeks
at a time. The service has been rendered cheerfully and ungrudgingly. The chief cause for this overtime work has been due to the
difficulty of securing efficient help, which has been greatly in demand,
this demand to a considerable extent being due to the draft to direct
Government activities and indirectly to the large volume of business
placed by the Government with large manufacturers and producers.
Women are discharging a growing percentage of bank work, just as
they are doing in many industrial lines, and lack of training has
naturally had to be overcome. Of the entire bank force of 110,
49 are women. The difficulty of securing experienced men as heads
of departments for the purpose of giving this necessary training has
been a leading phase of the situation, but by earnest cooperation of
all employed, the situation has been satisfactorily solved, and our
force to-day is better rounded, better equipped, more efficient, and
better qualified than ever before to discharge its duties and responsibilities. Some further adjustments are necessary, particularly with
the view for providing the necessary force for opening our Baltimore
branch early in the new year.
At the beginning of the year Mr. James A. Moncure was reappointed class C director for a period of three years, and reappointed



DISTRICT K"0. 5—BICHMOKD.

409

deputy chairman and deputy Federal Reserve agent. In accordance
with amendments to the Federal Reserve act passed in June, the
office of deputy Federal Reserve agent was abolished and Mr. Moncure's appointment to this position terminated. He was reappointed
OB July 25 deputy chairman for the remainder of the year.
At the opening of the year. Mr. Caldwell Hardy was reappointed
chairman of the board and Federal Reserve agent.
The following officers were reelected for the year 1917:
Mr. George J. Seay, governor; Mr. Charles A. Peple, deputy governor ; Mr. George II. Keesee, cashier and secretary of the board and
executive committee. Mr. J. W. Norwood was reelected member of
the Federal Advisory Council and attended meetings of the Federal
Advisory Council held in February, April, September, and November.
On May 17, the bank was designated as fiscal agent for the United
States and the activities of the bank under this appointment are elsewhere reported.
The establishment of a branch bank at Baltimore was authorized
by our board after due consideration, and received the approval of
the Federal Reserve Board. A committee, consisting of Messrs. Seay,
Brtrton, and Hardy, was appointed by our board with authority to
procure satisfactory banking quarters for the branch at Baltimore,
and the building of the former National Mechanics Bank of Baltimore (which was consolidated with the Merchants National Bank)
has been acquired for the Baltimore branch at a cost of $200,000. The
necessary alterations and improvements are being made and it is
anticipated that the branch will be opened early in the new year.
Deputy Governor Peple and Auditor Cadwallader visited some
months ago the Federal Reserve Bank of Atlanta and the New
Orleans branch, with a view to studying the methods there in use
and formulating plans for the organization of our proposed branch.
In May, a plan for inter-reserve rediscoxinting was inaugurated
by the Federal Reserve Banks, at the suggestion of the Federal
Reserve Board. This was done with the view to mobilizing resources
at the point of the greatest demand, through the cooperation of those
of the Federal Reserve Banks having at the time the largest amount
of available resources. Under this arrangement, our bank bought
during the past few months from one of the other Federal Reserve
Banks $5,000,000 of bankers' acceptances.
In June Mr. Thomas Marshall, jr., and Mr. C. V. Blackburn were
appointed assistant cashiers. Mr. Marshall has special charge of
correspondence in regard to discounts, and Mr. Blackburn is in
charge of our transit department.
In July Mr. M. F. H. Gouverneur, class C director, resigned,
owing to his removal from the district, creating a vacancy to be filled
by appointment by the Federal Reserve Board.



410

ANNUAL EEPOET OF THE FEDERAL RESERVE BOARD.
BANK BUILDING.

Our main quarters, at 1109 East Main Street, are inadequate and
anything but modern. Although we are occupying five floors in the
building, the extension of our activities under the appointment as
fiscal agent for the United States Government necessitated our acquiring the street floor and basement of the adjoining building, 1107
East Main Street, in addition to which we have rented the main
banking room of 1016 East Main Street, the building formerly occupied by the Richmond Banking & Trust Co. Our need for vault
space increased to such an extent that we were unable to secure the
necessary space among the other banks, to say nothing of the inconvenience and risk of transporting securities back and forth, and we
recently had completed and installed a new and modern vault of
moderate size in the fiscal agent department. This has proven of
invaluable service and simplified to a marked degree our difficulties
in this direction. The removal of this vault to our proposed new
building at the corner of Ninth and Franklin Streets, facing Capitol
Square, is contemplated.
Having acquired last year the site referred to above, we proceeded
early in the year with specifications for a competition for designs
for the proposed new building, the competition being under the
direction of Mr. Waddy B. Wood, of Washington, D. C. Eight
architects, or firms, entered the competition and the designs were
submitted in April. After a careful consideration of all plans by a
jury of award, consisting of three of our officers and directors and
two prominent architects, a design was selected which was made
by Messrs. Sill, Buckler & Fenhagen of Baltimore, to whom was
awarded a contract for the plans for the building. Messrs. Carneal
& Johnston, with A. C. Bossom, of New York, associate, were
awarded the second prize of $500, and Messrs. Parker, Thomas &
Rice, of Baltimore, were awarded the third prize of $250. The
plans were selected by the jury without knowledge as to the author.
The architectural design for the building has been completed, the
details of the interior have received much consideration and study
and it is hoped to have the whole design completed at an early date.
The functions of the bank are new and unusual, necessitating much
study and consideration in arranging the interior details. Thomas
Bruce Boyd (Inc.), engineers, of New York, have been engaged
in conjunction with our architects on these details, and it is hoped
to construct an attractive and monumental building, wTell adapted to
the use of the bank.
GENERAL.

The activities of the Government in the district at Charleston,
Henry, and the adja'cent waters in Virginia,

,W. Va.,
Norfolk, Cape


DISTRICT NO. 5

RICHMOND.

411

and Army and aviation camps at different points, have become an
active factor and element in the development of the district. The
expenditure of vast sums in connection with these developments has
stimulated the demand for material and labor. The maintenance of
them in the future will put in circulation in the district large sums
for labor and supplies.
Parties in this district desiring farm loans should apply to the
Federal Land Bank at Baltimore if located in Virginia, West Virginia, Maryland, and the District of Columbia, and to the Federal
Land Bank at Columbia if located in South Carolina and North
Carolina.
There has been but .one small and unimportant member bank
failure in the district during the year.
It is noted that some of our packing houses maintaining large
distributing plants throughout the country, including this district,
are arranging lines of credit with our member banks predicated ap-*
parently upon balances carried with these member banks. This indicates a desire to finance in the district the approximate volume of
their business therein. The pursuit of this method will distribute
their financing more evenly throughout the country instead of its
being concentrated at the location of their main office, and we regard
it as a healthy sign.
Earnings and expenses for the year have been satisfactory, as indicated by a payment to the Government of over $116,000—one-half
of our undivided profits to date. This result was reached through
the extension of liberal accommodation to our member banks at
minimum prevailing rates. A moderate proportion of our loans to
member banks have no doubt been due to Government financing, and
the amount of this will no doubt be maintained and probably increased as other loans are issued. Even in the event, however, of
peace and the curtailment or elimination of further Government
financing, we anticipate that the normal business activities of the district will make a demand on us for loans, which will maintain our
earning power on a satisfactory basis.
The developments in the district have been highly satisfactory and
the general outlook is favorable.
34365°—18

27




DISTRICT NO. 6—ATLANTA.

M. B. WELLBORN, Chairman and Federal Reserve Agent.

Substantial progress has been made during the year 1917, in broadening the activities of the Federal Reserve Bank of Atlanta proper,
and in the extension and development of the fiscal agency department in its connection with Government financing.
The resources of the institution have grown from $38,337,736.01 on
December 30, 1916, to $121,798,371 on December 31, 1917; the bank
has paid a full 6 per cent dividend to date; and in accordance with the
act has paid to the United States 50 per cent of its net earnings, in
amount, $40,000, as a franchise tax, the remainder being carried
into a surplus fund.
The member banks have more extensively availed themselves of
the rediscounting privileges; the " rediscounts and paper bought " on
hand December 31, 1917 being $21,020,900, as compared with
$7,411,829.98 as of December 30, 1916. The increase in acceptances
offered shows a better understanding«of the advantages of this class
of paper. The institution has strongly encouraged the use of acceptances and looks for still greater offerings in the coming year.
FINANCIAL, RESULTS OF OPERATION.

As to earnings, expenses, dividends, etc., a comparative statement,
marked "Schedule No. 1," is attached hereto, showing earnings and
expenses for the calendar years 1916 and 1917, and amounts of
net earnings; also amounts required to pay the 6 per cent dividends.
Comparative balance sheets for December 30, 1916 and 1917,
Schedule No. 2, attached, shows combined results of the Atlanta
office and the New Orleans branch.
Profit-and-loss statements for 1917 are shown in Schedule No. 3,
attached.
GENERAL BUSINESS CONDITIONS.

The year 1917 opened in a period of general activity in all commercial lines, which has increased monthly. Wages have advanced
with rising prices and business has been restricted only by inability




413

414

AHNUAL EEPOET OF THE FEDERAL EESEEVE BOARD.

to secure goods and transportation facilities, with certain limitations
of raw materials and labor. The numerous Army camps in the district have added materially to the retail and wholesale business.
Eailroads have been handicapped in handling both passengers and
freight, and there has been more or less congestion during the entire
year. The closing of the }^ear finds industrial plants operating at
full speed, with the exception that mills in some localities are operating on short time on account of lack of sufficient coal supply.
Excellent seasons prevailed during the year and the agricultural
producer was rewarded with bountiful harvests. The district produced the largest crops of food and feed stuff in its history. The
cotton crop was up to normal and high prices prevailed for all
farm products, giving this district a full measure of prosperity.
Among the events of special business interest is the revival and
enlargement of the shipbuilding industry at Savannah, Brunswick,
Mobile, Pensacola, New Orleans, and other Gulf points.
The labor situation at the end of the year does not present a very
promising outlook. Many of the laborers have been drafted into the
Army and with permanent emigration of many negroes to the North
in the early part of the year, and the anticipated additional draft,
the situation presented is a rather serious one, viewed from the future.
Despite the great commercial and industrial activities a plentiful
supply of loanable funds have been available throughout the year,
and bank rates have been low and steady. The resources of the banks
have been largely increased.
FEDERAL RESERVE BAXK AND MEMBER BANKS.

The most pleasant relations exist between the Federal Reserve
Bank and the member banks, and the spirit of cooperation grows
stronger with a clearer understanding of the advantages of the system, and the dissipation of the early fear of "red tape.'5 There is
still some difficulty in obtaining credit statements of customers from
the smaller member banks. The member banks, even in the smaller
towns, appear to be able to more clearly judge the eligibility of paper
from the Federal reserve standpoint, and it is seldom that paper sent
in for rediscount has to be returned for reasons affecting its eligibility.
During the year only one bank was closed by the Comptroller of
the Currency. This bank had a capital and surplus of $1,250,000,
and to date has paid the creditors 55 per cent. Five national banks,
with a total capital and surplus of $2,245,000 liquidated in* order to
consolidate with other national ban'ks. Thirteen national banks
liquidated during the year, representing a capital and surplus of
$802,000. Seventeen State banks in this district, representing a total
capital and surplus of $13,281,000, became members of the Federal
Keserve System.



DISTRICT NO. 6—-ATLANTA.

415

Paid-in capital of the Federal Reserve Bank of Atlanta amounted
December 31, 1916, to $2,450,000, and on December 31, 1917, $2,812,750. On December 31,1916, the capital and surplus of member banks
in the sixth Federal Reserve district amounted to $81,666,667, and on
December 31, 1917, to $92,408,300. The stock of the Federal Reserve
Bank of Atlanta shows a net increase of 6,445 shares in the year 1917.
DISCOUNT ACTIVITIES OF THE FEDERAL RESERVE* BANK.

Schedule 4, attached hereto, shows the discount operations of member banks during the first half of the year, which were about normal
as compared with previous years; but since the latter part of August
there has been a steady increase in offerings; the highest point being
reached on December 7, with a total of $22,754,273.
MEMBER BANK DEPOSITS

EXCESS DEPOSITS

OVERDRAFTS.

Schedule No. 5, attached hereto, shows the gross balances, overdrafts, required reserves, uncollected balances, and deficient reserves,
by States, in the district as of close of business December 31, 1917.
REPORTS AND EXAMINATIONS.

A splendid spirit of cooperation exists between the officers of this
bank and the chief national bank examiner of the district and has
proven highly valuable. Frequent conferences are held and views
exchanged of value to both offices. Examinations preliminary to
admission of a number of State banks entailed considerable work on
the auditor of the Federal Reserve Bank of Atlanta.
It was decided at the November meeting of the board of directors
to accept the examinations of State bank members as conducted by
the State authorities, and reports of all such examinations are being
mailed to the Federal Reserve agent.
During the year one bank was closed on orders from the Comptroller of the Currency; and while the institution had. large rediscounts with the Federal Reserve Bank at time of closing, the indebtedness was adjusted without loss to the system.
Several examinations of the Federal Reserve agent's department
and one general examination of the bank and the branch at New
Orleans were conducted by the Federal Reserve Board examiners
during the year.
THE FEDERAL RESERVE BANK AND THE PUBLIC.

For the first three months of the year there was a very small
amount of discounting. During the next three months there was an




416

ANNUAL KEPORT OF THE FEDERAL RESERVE BOARD.

increasing demand for accommodation from our member banks,
largely due to the agricultural conditions in our district. The
bankers, especially those of the interior, were carrying out the wish
of the Government in aiding the farmers to plant extraordinary
crops. The banks of the district in general came to the relief of the
farmers and aided them very materially in this respect. Earnings
of the bank were largely affected by the issuance of United States
Treasury certificates of indebtedness, in. whose purchase the Federal
Reserve Bank of Atlanta participated.
Another source of revenue was found in the fact that the member
banks, who had bought of the first issue of bonds, qualified as depositories of funds derived from that source, and just as these funds were
called in the member banks, to a certain extent, discounted paper to
meet the withdrawals. However, it was not until August that our
earnings increased materially, and since that time they have increased. Several causes, one of which was the high price of cotton,
entered into this increased demand, and called for a great deal of
money to market the crops. The banks availed themselves of the
amendment to the Federal Reserve Act, which enlarged their acceptance powers. A considerable volume of cotton was handled in that
way, and in some cases wheat and other commodities were handled by
the use of these bankers5 acceptances.
The member banks of the district subscribed freely to the second
issue of the Liberty loan bonds, qualified as depositories, and when
the deposits were called in they in many instances rediscounted with
us to meet the withdrawals. All of these sources produced a good
revenue for this bank, and enabled us at the close of the year to write
off all the furniture and fixtures, set up a depreciation fund sufficient
to cover any depreciation of securities, declare a dividend on our
capital stock up to December 31, 1917, and pay into the Treasury of
the United. States a like amount as a franchise tax covering the
operations of this bank up to this time.
Present indications point to a very active money market for the
coming year. We believe that the revenues of the bank will keep
pace with those of the past six months. We anticipate that there will
be another offering of bonds to the public, and as noticeable in previous issues, our reserves will naturally decline during such period.
We may also expect redemption of a considerable number of our bills
during the months of January, February, and March, and, as these
will be retired at 100 per cent gold, our reserve condition will naturally decline. From the present conditions, we need not be surprised to see our reserves reduced to probably 50 to 55 per cent, and
for a short period of time they may drop lower than 50 per cent.



DISTRICT NO. 6
OPEX MARKET OPERATIONS

ATLANTA.

417

TRADE ACCEPTANCES.

The Federal Reserve Bank of Atlanta has not been in the open
market to purchase bills from nonmember banks since July and
August of this year. Forecasting at that time that we would need
our reserve to handle the business offered us by our member banks,
we have kept out of the open market except for the purchase of
$175,000 school warrants.
While it is true that our statement shows a very satisfactory
volume under the head " open-market operations," yet in the, true
sense of the term " open-market" this is not the case. The items that
we are carrying under that head are purchases of acceptances secured
by cotton and other readily marketable commodities stored in warehouses, covered by insurance. These are acceptances of our member
banks to purchase for the account of the drawers. This we consider
a member bank operation, and though these papers are accepted by
member banks they are not indorsed by member banks, and must be
carried in the " open-market operations " column. We regard this as
excellent paper, due to the fact that we are in control of the commodity against which the acceptance is issued.
There has been only a limited development of trade acceptances
in this district. However, a campaign of education is being conducted by credit men's associations in all the larger cities of the
district in behalf of the use of trade acceptances. There has been a
gradual increase, and we believe this business will continue to increase in consequence of the efforts that are being put forth.
PUBLIC RELATIONS WORK.

Considerable public relations work was conducted during the year.
Monthly reports of business conditions, weekly bank reports, and
items of general banking interest are furnished to the press. The
press of the district have evidenced a deeper interest in the Federal
Eeserve system than at the outset, and generously give of their space
to its promotion as being of great benefit to the general public welfare. They more frequently bring to the public mind the value of
the system in Governmental finance and its practicability in rediscount facilities.
FEDERAL RESERVE BANK AND NOTE ISSUE.

While the amended Federal Reserve Act permitting the issuing
of Federal Reserve notes direct against gold is an added asset, the
bank has not yet strongly felt the need of this policy, inasmuch as rediscounting has kept pace with the growing volume of outstanding
Federal Eeserve notes.
In view of the high price of cotton and other products of farm and
factory, the demand for money has been correspondingly increased.




&

ANXTJAL REPOKT OF THE FEDERAL RESERVE EOARD.

The increased demand for Federal Reserve notes has caused the
Federal Eeserve agent at Atlanta to double the supply of notes kept
on hand at Washington for use of this bank, from $50,000,000 to
$100,000,000, in order to insure a plentiful supply at all times. The
chief demand has been for fives, tens, and twenties; there being
practically no call for fifties or hundreds.
Schedule No. 6, made a part of this report, shows the denominations of Federal reserve notes issued and the cost of these notes.
The outstanding Federal reserve notes on December 31, 1917,
amounted to $66,867,420, as compared with $25,919,530, December 30,
1916, and were secured by $16,178,637 collateral, and $50,701,320
gold in the hands of the Federal Eeserve agent. The notes issued
are not being returned in proportion to the usual after-crop movement period of previous years and with continued high prices and
great Government activity in our district a normal return is not
looked for.
CLEARINGS.

Schedule No. 7, made a part hereof, shows the transit operations
for the year, by months, together with the cost of operation and
revenue.
Under the amendments to the Federal Eeserve Act, member banks
are permitted to open checking accounts with Federal Eeserve Banks
solely for the purpose of making use of clearing facilities, and in
this way new par points have been added to the list.
Further to extend the number of par points, we have permitted
State banks to remit to us in eastern exchange in payment of letters—
it being impossible to get any of these in Atlanta exchange, since
the banks that have agreed to remit in some cases had no Atlanta account. In doing this, however, we of necessity had to give the same
privilege to our member banks and in this way our " float" has increased to a certain extent. We believe that later on it will be possible to arrange with our member banks to send in their exchange on
eastern points for credit and pay for items sent them either by remitting us check on ourselves or authorizing us to charge their account with outstanding letters, thus reducing the amount of " float"
carried.
Another feature that has encouraged the use of the par collection facilities of this bank has been that beginning with September 1
we put into effect a rule whereby member banks are permitted to
clear through us, without any charge whatsoever, checks to the
number of 500 each month; over and above 500 being charged
for at the rate of 11 cents per item. An analysis of our transit
department, prior to the interruption of the mail service on
account of handling war supplies, shows that we were clearing
points in the district on an average of two and three-quarters



DISTRICT NO. 6

ATLANTA.

419

days. Tills, however, has shown an increase within the last few
months, requiring at the present time something like three days,
or more, and it is possible that we may have to increase our time of
deferred availability on items in this district, unless the mail service
improves. The number of items handled shows a steady increase, and
taken as a whole the system is working with general satisfaction.
STATE BANKS.

The State bank interest in the Federal Reserve System, culminated
in the addition of a number of the larger banks in this district which
quickly came into the system in response to the President's appeal.
The State banks are better informed as to the working of the system and the advantages accruing from membership therein. The
President's appeal forcefully drew public attention to the necessity
of strengthening the Nation's financial structure through war's demands, and the advisability and practicability of unification for
after-war world financing.
The recent amendments to the Federal Reserve Act, permitting
State bank members to retain their State charters and exercise all
statutory rights; to continue to make loans in excess of 10 per cent
of their capital and surplus to any one borrower; and the acceptance
by the Federal Reserve Banks of examination as conducted by State
banking authorities have been instrumental in the change of view.
The State banks in the district eligible for membership in the system total 534, representing a total capital and surplus of $47,640,437;
divided into groups as follows:
Banks with capital and surplus not over $30,000
Banks with capital and surplus $30,000 to $75,000, inclusive
Banks with capital and surplus over $75,000

$3,652,550
12,800,387
31.187,500

The eligible State banks are as follows: Alabama, 110; Florida,
47; Georgia, 237; Louisiana, 64; Missisippi, 20; Tennessee, 56.
" The following State banks joined the Federal Reserve Bank of Atlanta in 1917:
Bank.
Marion Central Bank
Citizens Bank & Trust Co
American Trust Co
Volusia County Bank
Citizens Bank
American State Bank.'
Central Bank & Trust Corporation.
Trust Company of Georgia
Brunswick Bank & Trust Co
Citizens & Southern B ank
Savannah Bank & Trust Co
Union Bank of Pike
Hibernia Bank & Trust Co
Interstate Bank & Trust Co
Metropolitan Bank
Canal Bank & Trust Co
Jefferson Trust & Savings Bank



Location.

Capital and
surplus.

Marion, Ala.,
Tampa, Fla.
Jacksonville, Fla.,
DeLand, Fla
West Point, Ga..
Athens, Ga
,
Atlanta, Ga
,
.do.
Brunswick, Ga
Savannah, Ga
.do.
Summit, Miss
New Orleans, La..
.do
do..
do
Gretna, La

5150,000
750,000
210,000
200,000
50,000
120,000
1,300,000
2,000,000

172,000
2,000,000
1,200,000
29,000
2,500,000
1,250,000
600,000
700,000
50,000

420

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
EFFECT OF STATE BANKS REMAINING OUT OF SYSTEM.

If the eligible State banks continue to remain out of the Federal
Eeserve System, it will materially affect the strength of the Federal
Reserve Bank of Atlanta, because in the event of a great financial
disturbance the Federal Reserve Bank of Atlanta will necessarily
have to come to the assistance of the State banks through the medium
of the member banks who act as their correspondents in the district.
It must be borne in mind that the eligible State banks in the sixth
Federal reserve district that have not joined the system outnumber
the member banks about 33 J per cent; and in the event of trouble they
would certainly call on their correspondents in the district for help,
and we in turn would have to aid our member banks.
It is imperative that some means be found to bring into the system
those State banks which to date have refrained from making application for membership either through indifference or lack of interest
in the conditions that confront us.
EFFECT OF DISCOUNT-RATE POLICY OF THE BANK UPON GENERAL
MARKET RATES.

The discount policy of our bank has been an appreciable influence
upon the general market rates of the district. When we advance
rates, our advance, as recently evidenced, has materially stiffened
rates charged by member banks, especially in the larger cities of the
district. The rates of the banks in the smaller cities and towns, as a
general thing, are little affected by a change of rates as fixed by the
reserve bank, though of late we have noticed a tendency in cities ranging in population from 15,000 to 30,000 to offer lower rates to their
customers. It is also quite noticeable that when we increase our rates
it has the effect of causing member banks to reduce their loans,
thereby contributing to a more healthy condition in the matter of
credits.
INTERNAL MANAGEMENT OF THE BANK.

Little change has been made in the internal management of the
bank as to division of work between the bank proper and the office
of chairman of the board and Federal Eeserve agent.
At the time of the last yearly report the force consisted of 51 employees, including officers, but due to the increased work in the bank
itself and added work in connection with the fiscal agent's department the force was increased to 135. Out of the original 51, 15 enlisted in the Army and Navy and the difficulty in replacing
these experienced men reduced the efficiency of the institution.
In replacing these men it has been necessary to pay larger



DISTRICT XO. 0

ATLANTA.

421

salaries, and the higher cost of living has necessitated a general increase in the pay of all employees.
Mr. M. W. Bell, assistant cashier, has temporarily been relieved of
his duties and detailed to act as manager of the fiscal agent's department, embracing the bond issue division, conversion division, securities division, and the war-savings and thrift stamp division. Mr.
Jos, M. Slattery was appointed assistant Federal .Reserve agent and
elected secretary to the board of directors.
Mr. W. H. Toole resigned as a class A, group 3, director in October.
±vo election was held to fill the vacancy until December 6. Mr. P. IT.
Saunders resigned as a class B, group 1, director in May, and Mr.
Edgar B. Stern, of New Orleans, La., was elected to fill the vacancy.
At the December election Mr. P. E. Kittles, of Sylvania, Ga., was
elected a class A, group 3, director, and Mr. Edgar B. Stern reelected
a class B, group 1, director, both for a term of three years.
After an absence of several months on special duty Mr. J. B. Pike
returned to assume his duties as cashier of the bank. Mr. Jos. A.
McCord was reelected governor of the bank for the year 1918. Mr.
W. H. Kettig, of Birmingham, Ala., was reappointed a class G
director for a term of three years, ending December 31, 1919.
BANK QUAKTEES AND VAULT FACILITIES.

At the June meeting of the board of directors it was voted to
authorize the erection of a building on the Marietta Street lot, previously purchased, at a cost not to exceed $170,000, on a basis of labor
and materials in prewar times. Work was begun on the excavation
and building during July, the building to be ready for occupancy
prior to August, 1918. The building will be two stories, reinforced
concrete with granite exterior, fireproof, and equipped with all the
latest devices for protection. Work is progressing well and it is
expected that the building will be ready within the allotted time*
Contracts for the vaults were let separately. Considerable investigation and thought were given to the matter of vaults, and it was
determined to erect vaults along the latest lines of construction, with
all the improved electrical burglar-proof devices.
The present quarters of the bank are wholly inadequate, both in
floor space and vault room; and it has been necessary to rent additional space in the office building of our present location, and vault
space in outside banks.
NEW ORLEANS BRANCH OF THE FEDERAL RESERVE BANK.

The number of banks allotted to the New Orleans branch has been
increased during the year by the addition of four banks in the city



422

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD,

of New Orleans and two outside of the city, representing a capital
and surplus of $5,129,000. Little change has been made in the operation of the branch, and the results have been satisfactory during the
year. In order to permit of a more intelligent comparison of the
operating results of the branch and the parent bank, an agreement
was reached as to the proper adjustment of administrative expenses.
The branch bank serves the territory allotted to it in the same
manner as the parent bank, subject to supervisory control of the
parent bank. It retains all collateral deposited for Government deposits; holds all paper discounted and paper bought, and handles
subscriptions to Treasury certificates and Liberty loan bonds as a
separate unit. Federal Reserve notes are kept on hand in the
United States subtreasury and issued on order from the Comptroller
of the Currencjr by request of the Federal Reserve agent at Atlanta.
The clerical force of the branch consists of 17 employees.
THE FEDERAL RESERVE BAXK AND THE GOVERNMENT.

The exigencies of Government financing in connection with the
war has called into play to the fullest possible extent all of the
admirably designed machinery of the Federal Reserve Banks, which
has been employed in the handling of the various issues of Treasury certificates of indebtedness and subscriptions to the first and
second Liberty loans of 1917. The Federal Reserve Banks are
required by provision of the Federal Reserve Act to discharge, in
the discretion of the Secretary of the Treasury, the functions of
fiscal agent of the LTnited States Government, and while the authors
of the Federal Reserve Act probably did not have in view the
necessity for using the system to the extent that war conditions have
incurred, and preparations were not made in advance for the transaction of business in volume such as the war financing has developed,
the Federal Reserve Banks have been equal to the responsibilities
and have developed organizations and perfected machinery for the
handling of financial operations that have exceeded any previously
experienced by Government agencies or departments since the foundation of our Government.
The Federal Reserve Bank of Atlanta and its New Orleans branch
have, without stint or restraint, given to the Government the use of
their facilities in successfully handling and discharging the responsibility of properly putting before the public—through the instrumentality of its member banks, nonmember banks, trust companies,
and other agencies in the sixth Federal Reserve district—every




DISTRICT XO. 6

ATLANTA.

423

• to and paying for certificates of indebtedness,
Liberty loan bonds, war-savings, and thrift stamps, the sale of which
securities have approximated $200,000,000 from April 25 1917. to
the end of the year.
The officers and employees of the Federal Reserve Bank of Atlanta
and its New Orleans branch, assisted by numerous public-spirited
citizens, have worked with patriotic devotion to make war financing
a success in the district; and while the results accomplished did not
largely surpass expectations, they exceeded the anticipation of those
in position to know the conditions financially and what the people
of the district might be reasonably expected to do in lending to the
Government the use of their financial resources in investing in Government securities.
It has been necessary to increase the clerical force of the bank
about 150 per cent during the past six months. This involved the
organization of seven new departments and the employing of a
clerical force almost entirely untrained and inexperienced in this
character of work. The matter of subscriptions to first and second
Liberty loan bonds are about completed, but the details of conversion, sale of war savings certificates and thrift stamps and the formulation of plans for the handling of new issues of Government securities are engaging the attention of these new departments.
The experience gained has been invaluable to the Federal Reserve
Bank and will enable it to render much more efficient and effective
services in the future. Our facilities and organization will be devoted with even greater patriotic devotion to the interests of our
Government as the financing of the war progresses; and we know
that the banks and other organizations, as well as the patriotic
citizens who have given so freely of their time and talents, can be
counted on to make additional sacrifices in the future.
LIBERTY LOAN ORGANIZATIONS.

The first Liberty loan campaign opened on May 1-1 and closed on
June 15, 1917. The second Liberty loan campaign opened on October 1 and closed on October 27, 1917.
The district was thoroughly organized on the plan of subdividing
each State into a number of zones, with a chairman in charge of each
zone. These zones reported direct to the Liberty loan committee
for the entire district, with headquarters in the Federal Reserve
Bank, Atlanta, Ga.




424

AKXUAL REPORT OF THE FEDERAL RESERVE BOARD.
SUBSCRIPTIONS

TO LIBERTY LOAN BONDS.

First Liberty loan:
Subscription
$57, 878, 550
Allotment
$46, 283, 150
Number of subscriptions bandied by Federal Reserve Bank of
Atlanta—
Nonmember banks
636
Member banks
397
Individuals subscribed direct through this bank
1, 632
Estimated number of purchasers of the first Liberty loan
150. 000
Second Liberty loan:
Subscription
$92, 140,000
Allotment
$83, 065, 600
Number of subscriptions handled by Federal Reserve Bank of
Atlanta—
Nonmember banks
' 878
Member banks
,
484
Individuals subscribed direct through this bank
398
Estimated number of purchases of the second Liberty loan
275. 000
Total amount of certificates of Indebtedness of all issues allotted to subscribers
in the sixth- Federal Reserve district.

Amount allotted to subscriber.

$25,000 and less
Over $25,000 to $50,000
Over $50,000 to $100,000
Over $100,000 to $250,000...
Over $250,000 to $500,000....
Over 6500,000 to $1,000,000.,
Over $1,000,000
,

Total.

Number of!
subscribers I Total amounts
allotted to
in each I each group.
group, i
454
112
91
60
19
3
6

$5,333,000
5,666,000
8,388,000
10,713,000
7,017,000
2,500,000
8,848,000

748

48,495,000

The extent of Federal Reserve Bank's ownership of Treasury
certificates and Government bonds amounts to
.
$8, 281, 900.
The amount of loans made by Federal Reserve Bank upon United
States bonds and Treasury certificates as collateral .amounts to_ 22, 772, 600.

There are 55 special employees engaged in the bond department,
and there is attached as a part of this report a statement showing
the expenditures in the conduct of Liberty loan operations, and the
extent of the bank's reimbursement by the Treasury Department for
the outlay—Schedule No. 8.
The subscriptions for the Liberty loan bonds did not materially
affect finances of either banks or business houses in the district.
Deposits are greater now than they were before the first Liberty loan,
eliminating the amount of Government deposits still held by banks
as a result of the second Liberty loan. The expenditures of the Government for materials and provisions bought in the district about
offset Government withdrawals as a result of purchase of Liberty
bonds.



DISTRICT HO. 6

ATLANTA.

425

SCHEDULE 1.—Con)partitive statement of earnings and expenses.
1917

1916

$231,635. 57
102,311.56

$141, 774. 27
52. 473. 79

140,820. 48
3, 629. 26
25,568. 99
17,134. 05

725. 41
101.85

COMBINED EAENINGS.

Bills discounted and bought:
Bills discounted—members
Acceptances bought in open market
Investments:
United States securities
Municipal warrants
Profits realized on United States securities
Transfers—net earnings
Commissions received
Purchase of United States bonds
Deficient reserve penalties (including interest)
Sundry profits

153.07
1, 530. 27
,

13, 526. 88
6, 758. 45

"26" 185.'94

541, 385. 24

261, 944. 60

9 442. 27
466. 63
299. 98

8; 546. 82
357
1, 095. 89
182 60

36,470. 93
37,892. 48

Total earnings..

31,016.63
31,317.33
3.258.15
2, 790. 00
2,038. 00
2,251. 46
1, 299.44
1,400. 00

EXPENSES.
Assessments, expenses Federal Reserve Board.,
Federal Advisory Council
Governors' conferences
Federal Reserve agents 7 conferences
Salaries:
Ofiicers
Clerks
Special officers and watchmen
Directors' fees
Directors' per diem
Directors 3 traveling expenses
Officers and clerks traveling expenses
Legal fees
Rent
Taxes and fire insurance
Telephone
Telegraph
Postage
Expressage
Insurance and premiums on fidelity bonds
Light, heat and power
Printing and stationery
Repairs and alterations
All" other expenses

3, 424.10

2,188. 08
2,540. 00
2, 471. 42
1,066.94
600. 00
12,152. 92
1, 210. 64
535. 05
842. 86
6,825. 77
2, 483. 33
1,801. 90
174. 67
7,062. 67
27.86
16, 494. 72

11,572.18

348. 69
569. 63
4,569. 70
661. 87
1,192. 23
141. 78
4,240. 33
205. 55
7, 427. 05

Total expenses of operation
Cost of Federal Reserve notes issued
Cost of Federal Reserve notes unissued (on hand)
Depreciation:
Furniture and equipment
Bank premises

Gross earnings

Less total expenses,

SCHEDULE NO. 1A.—Statement of capital stock and dividend' of the Federal
Reserve Bank of Atlanta.

Number Paid in capiof banks.
tal stock.

State.

Alabama
Florida
Georgia .
Louisiana
Mississippi
Tennessee
Total



. .

. .

Accrued
dividend
to Dec. 31,
1917.

95
57
107
25
18
90

$544, 200.00
319,100. 00
854. 250. 00
48i; 450.00
116, 600. 00
497,150. 00

$32,271. 65
16, 895. 47
39,696. 75
20,530. 75
6,945.41
29,125. 58

392

2,812, 750. 00

145, 465. 61

426

AKNUAL REPORT OF THE FEDERAL RESERVE BOARD.

SCHEDULE NO. 2.—Statement of the condition of the Federal Reserve Brink of

Atlanta.
Dec. 31, 1917.

Dec. 30, 1916.

COMBINED RESOURCES.

Bills discounted—members
Member banks' collateral notes
Acceptances bouglit in open market.

$11,805. 589.16
2,628. 250. 00
6,497^ 061.67

$2,414,133.02
550,000.00
4,447, 696.96

Total bills discounted and bought.
Other United States bonds owned
One-year Treasury notes
Municipal warrants
Bill of lading drafts
Interest accrued on United States securities.

21,020,900.83

7,411,829.98

2,397, 000.00
1,491, 000.00
284, 372.00
503, 831. 60
25, 814.07

1,710,000.00
824,000.00
401, 509.00

Total.
Cost of unissued Federal Reserve currency.
Other deferred charges
Furniture and equipment
Bank premises
Expense:
Liberty loan
War savings

4,702,017.67

2,949,895.66

588.24
:,237.36
2,

20,314.87
517.43
12,282.26
102,500.00

Total..
Due from other Federal Reserve banks, collected funds
Due from member banks—overdrafts
Due from branches and offices
Due from banks and bankers
Exchanges for clearing house
Checks and other cash items
National bank notes and notes of other Federal Reserve banks.
Other mutilated currency for redemption
Deferred debits
Federal Reserve banksTransfers bought
Other items
Branches and offices
Member banks
Nonmember banks and bankers
Total..
National bank notes and F ederal Reserve notes of other banks.
Federal Reserve notes on hand
Mutilated Federal Reserve notes forwarded for redemption
Nickels and cents
Total..
Gold settlement fund
Due from United States Treasury gold redemption fund..
Gold bullion and coin
Gold certificates (including clearing-house certificates)
Silver certificates (including clearing house certificates)...
Legal-tender notes (including clearing-house certificates).
Silver coin
Bank of England—Sterling gold account
Gold with Federal Reserve agent

'140,875.20
514.02
180.05
189,394.87
2,182,401.91

14,386.6

135,614.56
5,312,435.71
4,819.11

354,061.46
2,552. 616. 60
so; 940.23
950.00
2,395. 250.00
232;

341,704.52
825,242.33
21,806.71
5,117,731.24

803,000.00
3,668,787.35
674,174.47
8,315,185.16
519,945. 77
21,785,312.95

11,623,739.62

1,909,030.00
43,500. 00
407. 51

1,677,795.00
1,241,765.00
180,000.00
160. 83

1,952,937.51 i 3,099,720.83
12,482,000.00
1,119,140.98
1,548,322.72
4,169,000.00
397,889.00
13,200. 00
4,626.00
1,575,000.00
50,701,320.00

7,439,000. 00
348,778.29
1,354,671.07
3,891,860.00
67, 467.00
13, 752. 00
1,407.00

Total reserve...

72,010,498.70

13,116,935.36

Total resources.

121,661,062.53

38,337,736.01

Capital paid in.
Profit and loss.

2.812,750.00
80,000.00

2.450,000.00
10,120.04

Total.
Unearned discount:
Bills discounted, members
Acceptances bought in open market...
Unearned interest on municipal warrants.
Reserved for sundry expenses
Service charges (net receipts)

2,892,750.00

2,460,120.04

37,292. 75
26,635.01
1,229.25
59,492.92

9,522. 43
12,631.55
1,557.47
460.64
2,483.24

COMr.INED LIABILITIES.

Total..




124,649.93 |

26,655.33

DISTRICT NO. 6

427

ATLANTA.

SCHEDULE NO. 2.—Statement of the condition of the Federal Reserve Bank of
A tla nta—Conti n ued.
Dec. 31,1917.
United States Government deposits
Due to member banks, reserve account
Due to other Federal Reserve Banks
Cashier's checks .
Expense checks
Dividend checks..
Federal Reserve Bank drafts
Due to nonmember banks and bankers
Deferred credits
Federal Reserve banks
Branches and offices
Member banks.
Miscellaneous...
Nonmember banks ..
Return item checks..
Total
Federal Reserve notes outstanding
Total liabilities

$4,476,782.74
36,849,923.90
1.334,971. 71
13, 783. 26
2,195.47
145,465. 61
115,280.00
97,903. 27
3,094,279. 83
222,655.30
5,376,124.80
.33
46,876.38
51,776,242.60

Dec. 30, 1916.
$3,821,076.20
21,812,983.12
5,762,247.41
52,828.06
1,007.16
70,941.30
58,727.49

50.00
31,579,860.64

66,867,420.00

4,271,100.00

121,661,062.53

38,337,736.01

SCHEDULE NO. 3.—Earnings and expenses for calendar year 1917; also profiit
and loss, Dee. 31, 1911.
Earnings for 1917, as shown by Form 95
Discount on United States bonds
Total earnings for 1917
Expenses of operation (bank proper)
Cost of Federal Reserve notes issued
Cost of Federal Reserve notes on hand and unissued.
Depreciation:
Furniture and equipment
Bank premises
Transit department disbursements in excess of service charges
Reserved for depreciation of securities
Difference account
Total expenses for 1917
Net earnings for 1917
Profit and loss, Jan. 1, 1917

$341, 385. 24
437. 50
$541,822.74
146,475.22
54, 808. 22
14, 320. 00
8,177. 80
2, 500. 00
2, 277. 04
"24, 909. 00
272. 01
253, 739. 29
288, 083. 45
10,120. 04

Total
298; 203.49
Dividend paid July 1, 1917, period covered July 1,
1916-Dec. 31, 1916
70, 506. 87
Dividend paid Jan. 1, 1918, period covered Jan. 1,
1917-Dec. 31, 1917
145, 465. 61
Premium on surrendered stock in 1917
2, 231. 01
218, 203. 49
Profit and loss Jan. 1, 1918
34365°—18
28




80, 000. 00

428

AIsXUAL EEPORT OF THE FEDERAL RESERVE BOAED,

Total profits to date;
Dividend No. 1, paid June 30. 1916, covering period Nov. 14.
1914-Dec. 31, 1915
$129,19S. 00
Dividend No. 2, paid Dee. 81. 1017, covering period Jan. 1,
1916-June 30, 1910
70,949.30
Dividend No. 3, paid July 1. 1017, covering period June 30,
.1916-Dec. 31, 1910
70,506.87
Dividend No. 4, paid Jan. 1. 1918. covering period Jan. 1,
1917-Dec. 31. 1917
145,465.61
Premium paid on surrendered capital stock. 101-3
2, 879.17
Premium paid on surrendered capital stock, 1017
2. 231. 01
5,110.18
Total dividend to date
Undivided profits, Dee. 31, 1917

421,229.915
80, 000. 00

Total net profits to date

501,229.96

SCHEDULE NO. 4.—Bills discounted and member banks1 collateral notes for 1917.
Member banks' collateral notes:
Secured by—
Liberty loan bonds or certificates of indebtedness
Bills receivable
Bills discounted—members :
Within 15 days
Within 30 days
Within 60 days
Within 90 days
Over 90 days
Total
Bills bought in the open market during 1917:
Bankers' acceptances—
Foreign and domestic
Trade acceptances
Total
United States securities (exclusive of bonds held under repurchase agreements shown below.* held Dee. 31, 1917:
United States bonds—
2 per cent consols 1030
2 per cent Panama bonds 1916-36
3 per cent conversion bonds
3 per cent one-year Treasury gold notes
3§ per cent United States Liberty loan bonds
4 per cent United States Liberty loan bonds
Total bonds




$18,399,800.0030, 679, 856. 00
14,014,698.34
6,745,886.20
14, 096, 707. 66
9, 498, 642. S3
1,052,151.67
95,114, 742. 70

26, 373, 464. 00
19,100. 00
26, 392. 564. 00

640, 600. 00
21, 000. 00
10, 300. 00
1, 491, 000. 00
215, 900. 00
9, 200. 00
2, 388, 900. 00

DISTRICT ISTO. 6—ATLANTA.
United States certificates of indebtedness:
2 per cent:
Bought
______
-___
Sold
3i per cent:
Bought
Sold
.
3 per cent, bought
3* per cent, bought——
4 per cent:
Bought
Sold

429

$1, 750, 000. 00
250,000.00
$1,500,000.00
1, 066, 000. C
O
933, 000. 00

———

73, 000. 00
506, 000. 00
4, 293, 000. 00

4, 781, 000. 00
410, 000. 00

4} 371^ ooo. 00
Total United States certificates of indebtedness on which
accrued interest was collected at maturity

10,743,000.00

United States Liberty loan bonds bought under repurchase
agreement:
4 per cent.
Total bought to Dec. 31, 1917
0, 464, 400. 00
Total repurchased by member banks
5,039,400.00

31 per cent.
75, 000. 00

Total held Dec. 31, 1917
1, 425, 000. 00
Investments in municipal warrants made during 1917:
Within 30 days
Within 60 days
Within 90 days
Over 90 days

75, 000. 00
61,000.00
20,479.00
57,937.00
276,019.00

Total

415, 435. 00

SCHEDULE N O . 5.—Due to member

hankx at the clone, of business

Dec. 31, 1917.

Number
of banks. Gross balance.
Alabama
Florida
Georgia
Tennessee
New Orleans.

94
57
107
90
44

$6,132,734. 05
3, 830, 533. 29
12, 595, 666.18
7,036, 223. 59
12, 630, 891. 59

Total...

392

42, 226,048. 70

Due to nonmember banks, clearing account, $144,759.65.
SCHEDULE XO. 6.—Federal Reserve notes.
TOTAL NUMBER OF NOTES ISSUED IN 1917 AND 1916.
1916

Amount.

Number.

Amount.

Number.

Amount.

604,000
344,000
192,000
13,400
4,000

$3,020,000
3,440,000
3 ; 840,000
670, 000
400, 000

2,280,000
1,880,000
848,000
22,200
1,500

$11,400,000
18,800,000
16,960,000
1,110, 000
150,000

2,884,000
2,224,000
1,040,000
35, 600
5,500

$14,420,000
22,240,000
20, 800,000
1,780, 000
550,000

1,157,400

11,370,000

5,031,700

48, 420,000

6,189,100

59, 790,000

Number.
Fives
Tens
Twenties
Fifties
Hundreds
Total




Total.

1917

430

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
SCHEDULE NO. G.—Federal Reserve

notes—Continued.

ON HAND DEC. 31, 1917.
Number.
Fives
Tens
Twenties. ..
Fifties
Hundreds

.

Amount.

503,800
233,650
163,725
29, 800
22,500

Total
SCHEDULE 7A.—Revenue and expenses of the transit

$2,519,000
2,336,500
3,274,500
1,490,000
2,250,000

953,475

.

11,870,000

department.
July 15 to
Dec. 30,
1916.

Service charges (net receipts)..
Service charges—balance 1916..

£45,484.29
2,483.24
47,967.53

Salaries:
Officers
Clerks
Officers' and clerks' traveling expenses,
Legal fees
Rent
Telephone
Telegraph
Postage
Expressage
Light, heat, and power
Printing and stationery
All other expenses

20,058.77

468. 77
20,278.53

Total.

$20,058.77

850.00
8,421.00
546.25

185.00
2, 750.04
36.25
15.66
8,278.98
10.80
147.75
2, 293. 82
5, 032.75
39,498.35
10, 746.22

Total expenses of operation
Depreciation—furniture and equipment.
Total transit department expense.
Total revenue received.
Less expense

1,273.02
12.80
3.79
3,364.48
2.20
18.65
1,232.77
1,238.81
16, 963. 77
611.76

50,244. 57

Excess.
Deficit.

17, 575.53

47/967.53
50,244. 57

20,058. 77
17, 575.53

2,277.04

SCHEDULE NO. 7-B.—Transit department

2,483.24

operations.

NUMBER OF ITEMS CLEARED.
Clearing house. | Within district.
January
February..
March
April
May
June
July
August
September.
October
November.
December..
Total




31,807
23,396
27, 747
28,058
29,165
30, 651
29, 557
30,064
28, 714
34, 806
37,267
38,196

Other districts.

Total.

268, 881
228,466
267, 534
253, 849
242, 621
231, 258
225, 321
225, 621
231,197
296, 883
305, 046
306,311

42, 816
40,541
45,454
39,088
36,499
34,134
34,183
34,139
35, 066
37, 791
34,014
38,018

343, 504
292, 403
340, 735
320,995
308, 285
296,043
289,061
289, 824
294, 977
369,480
376,327
382, 525

3, 082, 988

451,743

3, 904,159

431

DISTRICT NO. 6—-ATLANTA.
SCHEDULE 7-B.—Transit department

operations—Continued.

AMOUNTS CLEARED.
Clearing house.

Within district.

Other districts.

Total.

January
February..
March
April
May
June
July
August
September.
October
November.
December..

$27, 825, 651.51
17, 633, 626.06
20, 833, 334. 68
25,165, 742.17
29,459, 619.00
27, 607, 361.38
28, 013, 801.65
20,264, 544.39
30, 841, 993.37
47, 703, 371.19
61, 830, 910. 53
61,355, 280.72

$47, 587,689.44
37,454, 504. 79
44, 779,542.44
46,036, 180.98
45, 541,331.01
41,073,446.12
41,469, 304.45
44,371,427.31
52,044, 034. 71
76,776,793.76
74, 848,193. 93
69,414, 140.17

$34,117, 698.13
28,516, 879. 66
37, 086,899. 83
41,665, 839.85
36,453, 216. 82
36,957, 908.66
44,112, 210. 92
35,869,246.00
39,333, 788.35
56,537, 781.25
57, 779,171.28
71,766,475.11

$109, 531,039.08
83, 605,028.51
102, 699, 776.95
112,867, 763.00
111, 454,166.83
105, 638, 716.16
113, 595,317.02
106, 505, 217.70
122, 219, 816.43
181,017,946.20
194,458,275. 74
202, 535, 896.00

Total.

404, 535,236.65

621,396,589.11

520,197,115. £

1, 546,128,959.62

Average number of items handled daily
Average amount of items handled daily

12,514
$5,085,950.52

GOVERNMENT CHECKS HANDLED FROM MAR. 16 TO DEC. 31, 1917.
Number of
items drawn
on U. S.
Treasurer.

Amount of
items drawn
on U. S.
Treasurer.

March
April
May
June
July
August
September.
October
November.
December..

2,275
8,664
12, 714
10, 802
12, 057
13,227
13,512
19, 680
18,500
15, 868

$285,181
920,772
1,181,112
13,578,654
13, 823, 742
6,622,022
7, 723,104
11,775,962
16,101, 691
18,173, 875

Total.

127, 299

90,186,115

SCHEDULE NO. 8.—Expense of the first and second Liberty loan, to the close of
business Dec. 31, 1917.
Salaries:
Bank officers
$2, 985. 00
Clerical staff
16, 834. 61
Officers' and clerks' traveling expenses
2, 053.13
Rent
.
641.27
Telephone
464. 33
Telegraph
4, 025. 30
Postage
4, 837. 44
Expressage
206. 66
Printing and stationery
16,074.24
Advertising
3, 978. 76
All other expenses
17? 099. 66
Total expenses
Less reimbursements-




69, 200. 40
24, 686. 38
44, 514. 02

432

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
WAR-SAVINGS CERTIFICATE AND STAMP ACCOUNT.

Salaries, clerks
Officers' and clerks' traveling expenses
Telegraph
Postage
Printing and stationery
All other expenses
.__.
Total expenses of operation




$922, 94
63. 41
.65
.28. 00
35. 05
132. 00
1,180. 05

DISTRICT NO. 7—CHICAGO.
WM. A. HEATH, Chairman and Federal Reserve Agent.

GENERAL BUSINESS CONDITIONS.

The beginning of 1917 found generally satisfactory business conditions in the seventh Federal Reserve district, with some indications of increasing activity and a plentiful supply of money at low
rates. The entrance of the United States into the war constituted a
factor which up to that time had not been taken into serious consideration and necessarily brought about a great deal of readjustment.
The promotion of new enterprises was, of course, greatly curtailed, and as the year advanced it was increasingly evident that
expansion of already existing activities should be carefully guarded,
except as necessitated by the demands of the Government in connection with carrying on the conflict.
Some lines of commercial operation have suffered greatly. The
distilling business, because of legislation enacted by the last Congress, has greatly diminished. The seventh Federal Reserve district
has felt this for the reason that a large amount of such business was
conducted within its bounds, perhaps the largest internal revenue
producing district in the country being located within its limits.
Building, construction, and engineering lines have also been very
quiet and their operations much reduced.
Those lines of business, however, which have been directly affected
through Government contracts for food, clothing, munitions, and
other supplies have seen greatly increased activity. Bank clearings
have increased and indications are that the current year will show
largely increased profits for banking institutions in general, except
along the line of investment banking. Legitimate business, except as
above noted, has, of course, felt the effects of the war, but it is becoming increasingly evident that the business public is adjusting
itself to the situation and that the people are learning that commerce
and trade may, notwithstanding such conditions, be transacted, if
not as usual, at least on a sane and conservative basis.
Notwithstanding the fact that some of the greatest industrial centers of this country are located within its borders, the district, as a
433




434

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

"whole, is largely an agricultural one. The rural communities have
been the last to appreciate that the country was really and actually
in war and to comprehend the seriousness of the situation which
confronts the Nation.
In the northerly States of the district beans, potatoes, and other
vegetables constitute this year a large part of the farm product, and
these suffered from early frosts. The wheat crop for the district was
probably not more than two-thirds of an average yield. The prices
for the above-mentioned articles, however, were so satisfactory that
the financial return will probably equal that of the ordinary 100 per
cent crop. The hay crop was somewhat below normal, but prices
were good. The oats crop was the largest on record all over the
district, and prices w7ere more than satisfactory. While the corn
crop is rated as the largest on record the quality can not yet be determined. Much of it is not fully matured owing to unseasonable summer conditions and early frosts. Much of that which is at present
unmarketable can, however, by proper handling and treatment, be
made of commercial value, but a goodly proportion of the crop is
available only for stock-feeding purposes, and within the last month
or two a very strong demand has arisen in the country districts
for funds for purchasing cattle and hogs to thus utilize this otherwise useless product. Prices are such, however, that notwithstanding the poor quality of much of the crop the returns will be very
satisfactory, and all kinds of live stock are selling at high figures.
Whatever the complete returns may demonstrate, the impression
is general that money paid out on account of the war is slow in
returning to this district, and with the value of our great staple,
corn, yet undetermined, it is evident that a comprehensive forecast
of conditions in the district might widely miss the mark.
LOANS AND REDISCOUNT OPERATIONS.

Applications for loans (including advances on bill of lading drafts)
and rediscounts to the number of 3,747 were approved, amounting
to $521,771,070, at 3 to 5 | per cent basis from 541 banks, as follows:
Illinois, 158 banks
Indiana, 88 banks
Iowa, 198 banks
Michigan, 51 banks
Wisconsin, 48 banks

$2S7, 592, 763
28, 067, 829
53,923,991
89, 486, 872
62, 699, 615

Trade acceptances amounting to $429,845.08 are included in the
above total. Loans and rediscounts secured by Liberty bonds and
Treasury certificates of indebtedness amounting to a total of $191,757,389.66 are also included in the above figures. Loans and redis


435

DISTRICT NO. 7—CHICAGO.

counts were at their lowest ebb on April 23, when the combined total
w^as but $780,423.38. The highest point reached wTas on December 26,
the combined figure being $112,164,286.96.
OPEN-MARKET OPERATIONS.

Investments.—Municipal warrants amounting to $2,164,488.64, representing the obligations of seven municipalities, all maturing within
six months, were purchased during the year at 2|- to 4 per cent.
Acceptances.—Bankers' acceptances and foreign trade acceptances
totaling $66,714,060.14 were purchased during the year at 2J to 4
per cent, all represented by bills drawn in connection with imports
or exports, these being acceptances by 89 institutions of known
responsibility and purchased in the open market.
United States Government bonds.—Two per cent consols and
Panamas to the extent of $1,461,500 were purchased and converted
during the year. Three and one-half per cent Liberty loan bonds
amounting to $39,524,260 were purchased and sold by the bank during
the year.
Treasury certificates of indebtedness purchased by the bank.
Amount.

Date.
Mar. 31.
Apr. 25.
May 10..

$5,000,000
785,000
1,252,000
1 000 000
1,000,000

An? Q

Aug. 28

Rate.
Per cent.
2
3
31
33i

Date.
Sept. 17
Sept. 26
Oct. 18
Total

Amount.
$2,060,000
5,150,000
250,000

Rate.
Per cent.
4

16,497,000

The above figures include the bank's own direct subscriptions to the
various issues.
m

OFFICERS AND DIRECTORS.

An amendment to the Federal Eeserve act was passed during the
current year abolishing the office of deputy Federal Eeserve agent and
authorizing the Federal Eeserve agent to appoint one or more assistants. Mr. W. F. McLallen, who held the office of deputy Federal Eeserve agent, was at once appointed assistant Federal Eeserve agent
for the remainder of the calendar year. Toward the close of the year
Mr. Mark A. Lies was appointed an additional assistant Federal Eeserve agent. Mr. McLallen was also designated by the Federal
Eeserve Board as deputy chairman of the board of directors.
Additional assistant cashiers were appointed during the year as
follows: Mr. F. J. Carr, Mr. Clarke Washburne, and Mr. D. A.
Jones,



486

ANNUAL EEPOET OF THE FEDERAL RESERVE BOAKD.

At the annual election for directors in December, 1017, Mr. E. L.
Johnson was elected to succeed himself for the full three-year term
as a director of class A, group 3, and Mr. M. B. Hutchison was
elected to succeed himself for the full three-year term as a director
of class B, group 2.
On December 19 the Federal Reserve Board elected Mr. James
Simpson, of Chicago, class C director for three years and designated him deputy chairman for one year.
On December 21 the Federal Reserve Board redesignated the present incumbent as chairman and Federal Reserve agent of the Federal
Reserve Bank of Chicago for a period of one year, dating from January 1, 1918.
MEETINGS.

Directors.—The board of directors has held 12 regular meetings
during the year.
Executive committee.—The executive committee is composed of
Gov. McDougal, Mr. W. F. McLallen, Mr. J\ B. Forgan, Mr. G. M.
Rejaiolds, and the Federal Reserve agent. This committee has held
regular meetings once each week, but the great increase of businesb
toward the close of the year has necessitated two regular meetings
each week.
Membership.—This committee is composed of Gov. McDougal, Mi-.
A. H. Yogel, and the Federal Reserve agent,
Officers.—Early in the year there was inaugurated a plan of holding informal meetings of the officers daily before business hours.
This plan has been followed throughout the year except as it has been
interfered with to some extent through unusual activities in connection with the Liberty loan campaigns and other emergencies.
MEMBERSHIP.

Seven national banks have surrendered their charters during the
year, the total reduction of Federal Reserve Bank stock from this
source amounting to $45,400.
Twelve new national banks have been organized during the year.
Applications for membership from 63 State banks have been approved during the same period. Of these, 51 have paid in their
capital stock and reserve. Three have paid in their capital only.
The remaining nine were approved so recently that their payments
could not be made before the first of the year. Fifty-two banks
were transferred to this district from the Minneapolis district at
the beginning of the year. Membership December 31, 1916, 993;
December 1, 1917, 1,100. The net increase in the stock of the Federal Reserve Bank of Chicago from ail sources during the year has



DISTRICT NO. 7—CHICAGO.

437

been $2,408,150. A complete list of State bank members will be
found in the appendix,
The prospect for a branch of the Federal Reserve Bank at Detroit, Mich., has had a stimulating effect on State bank membership
in that city. In November a special session of the Michigan Bankers' Association was held at Lansing, Mich., at the instance of the
governor of the State, the bank commissioner, and the president of
the bankers' association, for the special purpose of arousing interest
among State banks concerning membership in the Federal Reserve
system. Addresses were made at this session by the above-named
officials, and also by Mr. Frederick R. Fenton, Federal Reserve chairman for Michigan; and the results were most gratifying, as will bo
seen by the increased membership from that State.
The appeal of the President of the United States urging State
banks to join the system has not, up to this time, met with a generous response. Two or three of the larger State institutions in
Chicago and a few scattering banks throughout the district came
in as a direct result of that appeal. There are, however, approximately 2,000 State banks in the district which are eligible for membership and less than 100 applications, all told, have been received
up to this time. It is nevertheless evident that greater interest in
this subject is being manifested throughout the district than heretofore. Many of the larger State institutions are seriously considering the matter, and some of them have signified their intention of
applying for membership in the near future.
BANKING QUARTERS.

The Federal Reserve Bank of Chicago has very inadequate quarters, both as to working space and vault capacity. At the present time
the bank is occupying space in four different buildings in Chicago.
The executive committee has been instructed to investigate the question of new and adequate quarters for the bank, but there is nothing
available in Chicago at the present time and no one seems willing to
take the responsibility of constructing an entirely new building until
after the war is over.
BRANCHES.

The board of directors at its regular meeting on November 27 authorized the establishment of a branch of the Federal Reserve Bank
of Chicago to be located in the city of Detroit, Mich. The following
have been chosen as directors of the branch: Mr. Robert B. Locke,
at present manager of the Detroit Clearing House Association; Mr.
John Ballantyne, president of the Merchants' National Bank, Detroit; Mr. Charles H. Hodges, president of the Detroit Lubricator



438

ANNUAL REPORT OF THE FEDERAL EESEEVE BOARD.

Co., Detroit; Mr. Emory W. Clark, president of the First and Old
Detroit National Bank; Mr. Julius H. Haass, president of the Wayne
County and Home Savings Bank, Detroit. Mr. Kobert B. Locke
"will be the manager of the branch. It is the expectation that this
branch will be formally opened for business shortly after the first of
the year.
PTTBLicrrr WORK.

The publicity work of the bank during the past year has been conducted through personal interviews, correspondence, and attendance
by the bank's officers at many bankers' conventions and group meetings. The monthly business reports of the bank have been circulated
as bulletins. A special pamphlet on trade acceptances has been
printed and widely circulated, and Mr. Clarke Washburne, assistant
cashier, has made a number of informal talks to various trade organizations on that subject.
FEDERAL RESERVE TRANSFER AND EXCHANGE DRAFTS.

During the year five banks in this district have ordered a supply
of Federal Reserve transfer and exchange drafts. But one of the
banks is using the plan. Twelve member banks in other districts
have drawn Federal Reserve transfer drafts on this bank. The total
transactions have been small.
GOLD SETTLEMENT FUND.

A complete statement showing the volume of transactions through
this fund on a basis of weekly averages appears in the appendix.
FEDERAL RESERVE NOTES.

The Federal Reserve agent maintains in Chicago constantly a
reserve supply of Federal Reserve notes amounting to $41,500,000.
There is held in the subtreasury in Chicago an additional reserve
supply of Federal Reserve notes amounting to $26,160,000, and in
Washington, printed or in process of printing, in round numbers,
$185,000,000, it being the desire of the board of directors to keep
always in sight a total reserve stock of over $250,000,000. In addition to the above there are $5,000,000 of Federal Reserve bank notes
printed and held in stock in Washington. An exhibit in detail of the
various issues appears in the appendix.
NONMEMBER BALANCES—CHICAGO CLEARINGS.

During the summer a plan was agreed upon whereby all nonmember banks belonging to the Chicago Clearing House should open accounts with the Federal Reserve Bank and clearing house balances



DISTRICT NO. 7—CHICAGO.

439

be settled by certified check on the Federal Reserve Bank. This
plan became operative September 1 and seems to have worked to the
satisfaction of all concerned. Eleven nonmember banks at that time
opened accounts with the Federal Reserve Bank. Four of these
have since that date entered the Federal Reserve system, leaving seven
nonmember banks still carrying balances with us. These balances
total about $5,000,000 on the average. One of these nonmember
banks is using the Federal Reserve collection system.
FIDUCIARY POWERS.

Permits have been issued during the year to a number of institutions for the exercise of various trust functions which are permitted
under the Federal Reserve act. A detailed list of these permits appears in the appendix.
PERMITS TO ACCEPT UP TO 100 PER CENT.

During the current year the Federal Reserve Board has granted
to the National Bank of the Republic of Chicago, and the Continental
and Commercial National Bank of Chicago, the right to accept up to
100 per cent of their capital and surplus.
RESERVES.

Fluctuation in reserves during the year is indicated as follows:
Against deposits:
Gold (high), 81.5 per cent on February 2, 1917.
Gold (low), 50.9 per cent on June 20, 1917.
Gold and lawful money (high), 83.2 per cent on February 2, 1917.
Gold and lawful money (low), 52.2 per cent on June 20, 1917.
Against Federal Reserve notes":
Gold (high), 157 per cent on January 2, 1917.
Gold (low), 59.5 per cent on November 23, 1917.
Against combined note and deposit liability :
Cash reserve (high), 85.9 per cent on February 2, 1917.
Cash reserve (low), 60.6 per cent on November 23, 1917.
DIVIDENDS AND EARNINGS.

During the year dividends amounting in all to 12 per cent have
been paid. All dividends accrued to December 31, 1917, are therefore paid in full. Also payment to the United States Treasury of
its pro rata of surplus earnings has been made, amounting to $215,799.18.
Furniture and fixtures, depreciation on bonds and the cost of Federal Reserve notes issued to the bank have all been charged off in
full. A detailed statement of profit and loss appears in the appendix.



440

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
OPERATIONS OF THE FEDERAL RESERVE COLLECTION SYSTEM.

There have been handled during the year 7,532,366 items as follows:
Items.

Amount.

Total cost. Cost per
item.

Items on banks in Chicago
1,807,728 $3,985,878,000
$7,200.00 $0,004
Items on banks in district outside
of Chicago.
4,362,436
987,821,000
/ .0125
187,450,000 } t>u,8fco.8/ \ .0125
Items on banks in other districts..
511,438
Government checks
.0056
850,764
202,461,000 • 4,800.00
Total

.

7,532,366

5,363,610,000

72,885.87

.00967

Cost per Service
charge
$1,000. per item.
$0.0018
.0518 X
.0518
.0237

$0.0
.015
.0

.0136

The disbursements or expenses of the transit department made
necessary by and in connection with the handling of items drawn
on " Banks in district outside of Chicago," and " Items on banks in
other districts," total $60,885.87, while the net service charges assessed
against the member banks and other Federal Reserve Banks covering same total $62,449.87, a net profit in handling these two classes
of transit items during the year of $1,564. Adding, however, the
cost of handling items on banks in Chicago ($7,200) and Government checks ($4,800) it increases the total expenses ($12,000) to a
total of $72,885.87, or a net cost for the year in handling the above
four classifications of $10,436. There have been added to the
Federal Eeserve par list from January 1 to December 31, 1917,
618 points or towns and 1,082 banks—975 nonmembers and 107
members. The bank has handled a small amount of collections,
drafts, notes, etc., for its customers during the year on a basis of
actual cost. But one nonmember bank carrying an account with the
Federal Eeserve Bank is making use of its collection system.
FISCAL AGENCY OPERATIONS,
FIRST LIBERTY LOAN.

When the Secretary of the Treasury offered the first issue of
$2,000,000,000 of 3J per cent bonds, a meeting of representatives of
prominent banks, trust companies, and bond houses was called to
consider ways and means for its sale. There were present at this
meeting some 50 or 60 representatives. This body appointed an
executive committee, which committee in turn organized itself into
a publicity committee. The publicity committee took charge of the
selling campaign and appointed an assistant to the chairman, a
corresponding secretary, and a recording secretary. The assistant
to the chairman was the active officer in the conduct of the campaign.
Another important committee appointed was the distribution
committee, which consisted of a chairman and six other members,
one being named for each State in the district and one for the
Chicago
 territory.


DISTRICT NO. 1

CHICAGO.

441

These chairmen for the various sections secured the services of
several hundred experienced bond salesmen and sent them out all over
the district, building up working organizations in every section.
These organizations were by counties, cities, and towns. The chairman for Chicago organized a flying squadron of several hundred
volunteers and these men made an office-to-office canvass within the
" loop district."
Among other committees covering district-wide activities were the
following: Public speakers, advertising, foreign-language papers,
posters, insurance companies, churches, moving pictures and fourminute men, fraternal societies, public utilities, etc. The governors:
of all five States united in issuing proclamations making one week
" Liberty loan week." Partial payment plans were devised for banks
and other organizations to carry those subscribers who were not prepared to meet their subscriptions in full. Secretary McAdoo visited
the district during the campaign and spoke in several cities. The
district's quota of bonds was oversubscribed.
SECOND LIBERTY LOAN.

This campaign was organized by an executive committee composed
of the same members as the former executive and publicity committees and with the same chairman as the old publicity committee.
Several additions were made, however, to the membership before the
campaign began. An executive secretary was chosen and placed in
active charge of the campaign.
The active work of the campaign was carried on under the following divisions: Department of sales; department of publicity; department of public speaking; and woman's work. Additional committees covering district-wide activities were appointed as in the
first campaign and the same chairmen served as before for Chicago
and the various States. The unit of organization for the second campaign was the county, and this organization was subdivided so as to
reach down to the city, the town, the school district, and in some cases
the voting precinct. In addition thereto, all of the larger cities
formed their own organizations, Volunteer workers from banks,
bond houses, stock exchange firms, commercial paper houses, insurance companies, and so on, canvassed the entire district, encouraging
local workers and doing pioneer work in different communities.
In each State an advisory committee was formed, consisting of
the Governor, the State superintendent of banks, the president of the
State bankers' association and representatives of labor, religion, agriculture, commerce, industry, State council of defense and others.
The district's quota of the four billions of bonds offered was oversubscribed.



442

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

The work of the second Liberty loan campaign was. much better
organized and more efficiently conducted than that of the first. It
is a matter of regret that space forbids personal recognition of the
many workers and instrumentalities cooperating toward the success
of the two campaigns. They are numbered by the thousands. Their
names are on file with the Federal Reserve Bank and the result of
their effective labors will not be forgotten. A list of officers and
executive committees is given in the appendix.
GOVERNMENT BOND DEPARTMENT.

The Federal Eeserve Bank organized a Government bond department through which the actual accounting for and distribution of
Liberty bonds has been handled. A statement of the expenses of this
department appears in the appendix.
In the appendix will be found an exhibit of the result of both the
first and second Liberty loan campaigns.
TREASURY CERTIFICATES OF INDEBTEDNESS.

A table showing the sales of the different issues of these certificates
will be found in the appendix.
WAR-SAVINGS CERTIFICATES.

The Secretary of the Treasury has designated the Federal Eeserve
Banks as fiscal agents for the distribution of war-savings certificates
and stamps. The Federal Reserve Banks become the warehouses
to which banks, express companies, railways, and other authorized
agents go to receive their supplies and to whom they account for the
proceeds.
Up to and including December 31 the Federal Eeserve Bank of
Chicago has accounted for $915,725 par value from the proceeds of
these certificates.
DEPOSITORIES FOR PROCEEDS OF LIBERTY BONDS AND TREASURY
CERTIFICATES.

Many banks throughout the district qualified as depositories under
the regulations prescribed by the Treasury Department. In order
to accommodate the various sections of the district, securities committees and custodians for collateral were appointed in each State, serving without compensation. A list of such securities committees and
custodians appears in the appendix.
CONCLUSION.

The Federal Eeserve system has already justified the expectation
of those who were instrumental in framing the act and responsible




DISTRICT NO. 1

443

CHICAGO.

for its enactment. Through it the reserves of the country have been
largely mobilized and much of the free gold brought into its coffers.
As a result of its establishment public confidence exists and the integrity of our business fabric has been maintained, although our country
has entered upon what is perhaps the most momentous epoch in its
history.
In all this the Federal Reserve Bank of Chicago has borne its
part. With all other Federal Reserve Banks its note issues have
largely increased during the year. Much of this increase has been
directly against gold, and the greater demands of business have necessitated the remainder.
The board of directors of this bank, slow in the beginning to make
use of this issue power, have not hesitated to avail themselves of it
when the situation demanded, and yet further use of it will be inevitable during the continuance of the war. The problem of differentiating between necessary expansion on the one hand and dangerous
inflation on the other is yet to be solved. The wise conservatism
which has thus far directed the operation of the Federal Reserve
Banks and the administration of the system may be trusted to handle this situation in a satisfactory manner when it is presented for
solution.
EXHIBIT

A.—Comparative yearly statement.
Dec. 31,1917.

$105,923,175.99
9,182,429.93
10,384,600.00

Total.

Gold coin and gold certificates
Bank of England sterling gold account
Other lawful money
Gold settlement fund
Gold with Federal Reserve agent
Five per cent redemption fund
Total cash reserve
Other assets

$4,437,460.35
10,337,101.09
10,375,100.00
1,325,700.88

125,490,205.92

Bills discounted, members
Bills discounted, bought
United States bonds and notes.
Investments
Interest accrued on United States bonds and notes
Premium on United States bands
liberty loan bonds—$10-participation certificates
Furniture and fixtures
Cost of unissued Federal Reserve notes
Due from member banks, overdrafts
Due from Federal Reserve Banks
Federal Reserve Banks, transfers bought
Transit and exchanges for clearing house
Federal Reserve and national bank notes

26,475,482.32
— ; - — -,
;
50,896.48
193,311.66

63,695.00

"163,166.66
-

.*.

330,615.85
5,992, 720.41
8,178,412.26
19,868,657.09
10,635,500.00




28,304.53
67,957.83
1,723.57
29,913,819.08
"*4,'692,*553."7i
2,986,185.00

32,189,305.00
7,350,000.00
963,872.27
58,960,460.00
130,723,530.00
646,490.00

396," 102." 95
26,183,000.00

230,833,657.27

54,379,727.95

27,600,625.00

200,000.00

349,181.34
401,905,745.14

34365°—I

Dec. 31,1916.

118,789,962.13

444

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.
EXHIBIT A.—Comparative yearly

statement—Continued.
Dec. 31, 1917.

Dec. 31,1916.

LIABILITIES.

Capital paid in
Surplus
Profit and loss
Discount on United States bonds
Unearned discount
Unearned interest—investments
Reserved for sundry expenses
Difference account
,
Federal Reserve notes outstanding
Federal Reserve bank drafts
,
Liberty loan—$10-partieipation certificates sold.
Uncollected funds
United States Government deposits
Due to Federal Reserve Banks
Due to member banks—reserves
Due to nonmember clearing banks

$9,091,700.00
215,799.18
77,603.50
318,087.33
4,833.62
254.61
190,788,530.00
1,471,347.45
163,100.00
18,183,306.82
3,052,436.84
6,165,983.77
169,174,348.05
3,198,413.97

1,683,550.00
" 61,* 978.07
46,451.23
6,051.22
5,391.08

2,045,784.95
14,550,742.93
95,390,012.65

401,905,745.14
Gold reserve against net deposit liabilities (per cent)
Cash reserve against net deposit liabilities (per cent)
Gold reserve against Federal Reserve notes in circulation (per cent).

118,789,962.13

59.2
59.7
72.7

69.8
70.3
158.0

EXHIBIT B.—Earnings and expenses for calendar year 1917; also profit and
loss on Dec. SI, 1917.
Earnings for 1917, as shown on Form 95
$2, 020, 714.10
Net service charges in excess of transit department disbursement
1, 564. 00
Total
Expense of operation of bank proper
Cost of Federal Reserve currency issued (including expressage, insurance, etc.)
Cost of Federal Reserve currency unissued,
charged off
Miscellaneous charges account note issues
Depreciation on furniture and equipment
Depreciation United States bonds

$2,022,278.10
320, 357. 29
157,510.57
43, 001. 01
2, 314.11
32, 225. 53
237,118. 24

Total

792, 526. 75

Net earnings for year
Profit and loss, Jan. 1, 1917
Amount paid by Federal Reserve Bank, Minneapolis, Jan. 30,
1917, to equalize stock of said bank transferred to Federal
Reserve Bank of Chicago capital stock

1, 229, 751. 35
61, 978. 07

Total
Dividends paid:
Date paid June 29, 1917, period covered Jan.
1, 1916, to June 30, 1916, inclusive, amount
Date paid Dec. 28, 1917, period covered July
1, 1916, to Dec. 31, 1917, inclusive, amount
Interest paid on stock surrendered

1, 293, 856. 64
$205, 710. 22
654, 347. 08
2, 200. 98




862, 258. 28
431, 598. 36

Profit and loss—Dee. 31, 1917.
Distribution of profit and loss:
One-half of balance Dec. 31, 1917, remitted
to United States Treasury—franchise tax
paid United States Government
One-half of balance transferred to surplus
fund

2,127. 22

215, 799.18
215,799. 18

431, 598.

445

DISTRICT NO. "7—CHICAGO.
EXHIBIT

C.—Transactions through the gold-settlement fund weekly.
[000's omitted.]
Week ending—

Debits.

Credits.

Balance.

1917.
$36,705
42,545
39,225
38,210
42,329
40,607
38,004
32,352
41,375
43,094
33,111
36,584
32,368
33,794
45,617
52,304
46,735
68,944
59,718
75,741
59,791
58,235
53,944
60,305
85,672
76,628

$29,668
43,911
36,097
39,688
36,913
42,929
34,554
39,706
29,686
40,391
32,704
40,207
41,109
35,466
42,095
48,531
65,540
57,446
68,082
70,614
53,417
67,661
45,587
72,705
85,008
61,133

$33,220
31,854
34,982
33,504
38,920
36,598
40,048
32,694
44,383
47,086
47,493
43,870
35,129
33,457
36,979
40,752
21,947
33,445
25,081
30,208
36,582
27,156
35,513
23,113
23,777
39,272

Subtotal
July 4
July 11
July 18
July 25
Aug.l
Aug. 8
Aug. 15
Aug. 22
Aug. 21
Sept. 5
Sept. 12
Sept. 19
Sept. 26
Oct. 3
Oct. 3 0
Oct.17
Oct. 24
Oct. 31
Nov. 7
Nov. 14
Nov. 21
Nov. 28
Dec. 5
Dee. 12
Dec. 19
Dec. 26

1,273,937
87,051
87,111
69,563
105,694
72,032
"80,092
72,749
75,508
79,741
76,009
94,597
77,424
97,064
80,385
96,884
92,012
113,536
102,053
119,920
102,504
173,061
125,307
107,425
98,909
155,930
124,405

1,260,848
54,661
84,045
85,890
111,159
99,326
60,819
77,592
67,984
66,681
56,454
104,320
92,864
100,034
98,027
76,345
80,947
107,828
126,580
107,316
103,579
166,149
125,771
110,780
101,001
157,816
132,109

71,662
74,723
58,401
52,936
25,642
44,915
40,072
47,596
60,656
80,211
70,488
55,0 43
52,078
34,436
54,975
66,040
71,748
47,221
59,825
58,750
65,662
65,198
61,843
59,751
57,865
50,161

Total
Total, 1916
Increase, 1917

3,840,903
798,567

3,816,925
774,570

3,042,336

3,042,355

Jan. 3
Jan.10
Jan. 17
Jan. 24
Jan. 31
Feb.7
Feb.14
Feb. 21
Feb. 28
Mar. 7
Mar. 14
Mar. 21
Mar. 28
Apr. 4
Apr. 11
Apr.18
Apr. 25
May2
MayQ
May 16
May 2?
May SO
June 6
June 13
June 20
June 27

EXHIBIT

D.—Federal Reserve notes.

Notes outstanding Dec. 31, 1916:
683,839
fives
67,780 tens
125,850 twenties
3,490
fifties
3,950 hundreds

$3,419,
677,
2, 517,
174,
395,

Notes issued to bank during year 1917:
3,496,000
fives
6,924,000 tens
4,004,000 twenties
228,000
fifties
104,000 hundreds

17,480,000
69, 240, 000
80,080,000
11, 400, 000
10, 400, 000

Total




195
800
000
500
000

$7, 183, 495

188, 600, 000
195, 783, 495

446

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

Notes retired during year 1917 :
350,829
fives
147,853 tens
76,212 twenties
3,923
fifties
419 hundreds

$1, 754, 145
1 478,530
1,524,240
196, 150
41, 900

Notes outstanding Dec. 31, 1917
Notes outstanding Deo. 31, 1917:
3,829,010
fives
6,843,927 tens
4,053,638 twenties
227,567
fifties
107,531 hundreds

19,145,050
68,439,270
81, 072, 760
11,378,350
10, 753, 100

Total notes retired since organization :
626,990
fives
156, 073 tens
86,362 twenties
4,433
fifties
469 hundreds

3,134,950
1, 560, 730
1, 727, 240
221,650
46, 900

Total notes returned to agent since organization :
Unfit notes—128,000
fives
Fit notes—
10
fives
30 twenties
5
fifties
1 hundred

$4, 994, 965
190, 788, 530

190, 788, 530

6, 691, 470

640,000
50
600
250
100
641, 000
198, 121, 000

Total notes issued and reissued since organization :
4,584,010
fives
7,000,000 tens
4,140,030 twenties
232,005
fifties
108,001 hundreds
Total notes on hand by agent Dec. 31, 1917 :
1,236.000
fives
760,000 tens
716,000 twenties
100,000
fifties
44,000 hundreds

22, 920, 050
70,000,000
82,800,600
11, 600, 250
10, 800, 100
6, 180, 000
7,600,000
14,320,000
5, 000, 000
4, 400, 000
=

198, 121, 000

37, 500, 000

EXHIBIT E.—Member banks in seventh Federal Reserve district to whom permits have been granted for the exercise of trust powers.
City.

State.

Indiana.
Anderson
.do..
Batesville
Battle Creek
Michigan
Do
do..
Bay City
do
Beaver Dam
j Wisconsin
Belvidere
j Illinois
Benton Harbor
! Michigan
Birmingham
i
do
Bloomington
j Illinois
Boone
! Iowa
Boyne City
! Michigan.
Brazil
Indiana
.do.
Do
do
Brookville
do
Do
Illinois
Casey
Iowa
Cedar Rapids
do
Do
Illinois
Chicago
Iowa
Clarence
Clinton
do
do
Coon Rapids
do
Council Bluffs
do
Do
Indiana
Crawfordsville
Illinois
Decatur
Iowa
Deeorah...
do
Des Moines



Name of bank.
Peoples State National Bank
First National Bank
Central National Bank
Old National Bank
First National Bank
Old National Bank
Second National Bank
Farmers & Merchants National Bank
First National Bank
State National Bank
First National Bank
.do.
< do..
Riddell National Bank
Franklin County National Bank.
National Brookville Bank
First National Bank
Cedar Rapids National Bank
Merchants National Bank
National City Bank
First National Bank
City National Bank
First National Bank
City National Bank
First National Bank
Citizens National Bank
Millikin National Bank
National Bank of Decorah
Des Moines National Bank

Date of
permit.
June 8, 1915
Sept, 13, 1916
Oct. 6, 1917
Apr. 29, 1915
Apr. 13, 1915
Apr. 29, 1915
Do.
Aug. 18, 1917

Sept. 22, 1917
Jan. 18, 1916
Oct. 9, 1916
June 1, 1915
Oct. 13, 1916
Apr. 29, 1915
Sept. 30, 1915
Aug. 23, 1916
Dec. 30, 1915
M a y 9, 1916
Apr. 24, 1915
Aug. 9, 1915
Apr. 19, 1916
Nov. 8, 1915
Dec. 29, 1916
June 8, 1915
Mar. 9, 1917
M a y 5, 1917
Jan. 18, 1916
Sept. 20, 1917
July 20, 1916

DISTRICT NO. "7—CHICAGO.

447

EXHIBIT E.—Member banks in seventh Federal Reserve district to tvhom permits have been granted for the exercise of trust powers—Continued.
City.
Dubuque
Dyer
Emmetsburg
Flint
Fonda
Franklin
Freeport
Gladbrook
Grand Rapids
Greencastle
Humboldt
Independence
Indianola
Janesville
J oliet
Kanawha
Kokomo
Bo
Lansing
La Porte
LeMars
Liberty
Logansport
Macomb
Manchester
Marengo
Marion
Do
Marseilles
Mattoon
Michigan City
Mishawaka
Monroe
Monrovia
Montezuma
Moweaqua
Muncie
Odebolt
Oskaloosa
Peterson
Petoskey....
Port Huron
Red Oak
Richmond
Do
Rochester
Do
Rockford
Do
Rockville
Rushville
Do
Russiaville
St. Clair Heights
Saginaw
Sheridan
Do
Sibley
Sioax Rapids
South Bend
Stanton
Story City
Tipton
Traverse City
Valparaiso
Wabash
Waterloo
Do....
Waukesha
Waverly
Webster City..;
Whiteland
Wilkinson

State.
Iowa
Indiana...
Iowa
Michigan..
Iowa.
Indiana...
Illinois
Iowa.
Michigan..
Indiana..
Iowa.
do
.do
Wisconsin..
Illinois
Iowa.
Indiana...
.do..
Michigan..
Indiana..,
Iowa.
Indiana...
do
Illinois
Iowa
.do..
Indiana.
do...,
Illinois.,
do..
Indiana
do
Wisconsin..
Indiana.
Iowa
Illinois..
Indiana.
Iowa.
.do
.do
Michigan..
.do
Iowa.
Indiana.
do..
do
Michigan..
Illinois
.do..
Indiana.
do...
do
do
Michigan.,
.do..
Indiana...
do
Iowa.
do
Indiana...
Iowa.
do....
Indiana..
Michigan.,
Indiana..
do...
Iowa.
do
Wisconsin..
Iowa
do
Indiana
....do

Name of bank.
First National Bank
do
Emmetsburg National Bank
First National Bank
.do..
Franklin National Bank.
First National Bank
.do..
Old National Bank...
First National Bank,
.do
..do..
..do...
...do
.do..
.do..
Citizens National Bank..
Howard National Bank.
Capital National Bank..
First National Bank
do..
Union County National Bank.
First National Bank
Union National Bank
First National Bank
do
Marion National Bank
First National Bank
National Bank of Mattoon.
Merchants National Bank..
First National Bank
.do
..do..
..do.,
.do..
Merchants National Bank.
First National Bank
Oskaloosa National Bank..
First National Bank
.do
.do..
..do..
..do..
Second National Bank.
First National Bank
.do..
Rockford National Bank
Third National Bank
Rockville National Bank
Rush County National Bank..
Rushville National Bank
First National Bank
Michigan National Bank
Second National Bank
Farmers National Bank
First National Bank
.do
.do..
do
do
.do..
Citizens National Bank
First National Bank
Farmers National Bank,
Farmers & Merchants National Bank.
Commercial National Bank
Leayitt & Johnson National Bank
National Exchange Bank
First National Bank
Farmers National Bank
Whiteland National Bank
Farmers National Bank

Date of
permit.
May 5, 1917
June 8, 1915
May 5, 1917
Dec. 26, 1917
July 26, 1915
Do.
Apr. 26, 1915
Aug. 27, 1917
Apr. 29, 1915
Oct. 9, 1916
Jan. 18, 1916
Aug. 26, 1915
Jan. 18, 1916
May 5, 1915
Apr. 15, 1915
Jan. 25, 1917
Jan. 26, 1916
Aug. 26, 1915
Aug. 15, 1917
June 8, 1915
July 20, 1916
June 4, 1915
Oct. 13, 1916
Apr. 13, 1915
Dec. 1, 1917
Oct. 9, 1916
Aug. 26, 1915
Feb. 21, 1916
Apr. 13, 1915
Dec. 29, 1915
Oct. m, 1916
Mar. 7, 1917
Apr. 29, 1915
Oct. 6, 1917
Oct. 9, 1916
Jan. 17, 1916
Mar. 14, 1917
Sept. 13, 1915
Jan. 17, 1916
Aug. 10, 1916
Dec. 2, 1915
Feb. 23, 1916
June 15, 1917
Apr. 29, 1915
Apr. 24, 1915
Oct. 18, 1916
July 26, 1915
June 1, 1915
Apr. 29, 1915
June 8, 1915
Apr. 13, 1915
June 8, 1915
Apr. 29, 1915
Feb. 21, 1916
Apr. 15, 1915
Apr. 7, 1916
Dec. 27, 1916
Apr. 13, 1915
Mar. 28, 1916
Feb. 21, 1916
Aug. 9, 1916
June 8, 1915
Sept. 13, 1915
Nov. 8, 1915
May 14, 1915
Dec. 2, 1915
Aug. 9, 1915
Dec. 29, 1 1>
9f
Apr. 24, 1915
June 15, 1917
June 8, 1915
Nov. 25, 1916
July 1, 1915

NOTE.—National banks in the State of Illinois are not as yet exercising trust powers.
It is understood that the supreme court of the State is shortly to pass on a test case
now pending, to determine whether the State laws permit the exercise of such powers by
national banks.




448

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

EXHIBIT F.—State member banks in seventh Federal Reserve

Austin State Bank, Chicago.
Central Trust Co. of Illinois 1 (1914), Chicago.
Chicago Savings Bank & Trust Co., Chicago.
First Trust & Savings Bank, Chicago.
Foreman Bros, Banking Co., Chicago.
Harris Trust & Savings Bank, Chicago.
Hyde Park State Bank, Chicago.
Kaspar State Bank, Chicago.
Merchants' Loan & Trust Co., Chicago.
Noel State Bank, Chicago.
Standard Trust & Savings Bank, Chicago.
State Bank of Chicago, Chicago.
Union Trust Co., Chicago.
United State Bank, Chicago.
Kirchman State Bank, Cicero.
Elmhurst State Bank 1 (1915), Elmhurst.
State Bank of Evanston, Evanston.
Commercial Trust & Savings Bank 1 (1915), Joliet.
Joliet Trust & Savings Bank, Joliet.
Union State Savings Bank & Trust Co., Kewanee.
Mq^tinsville State Bank,2 Martinsville.
Suburban Trust & Savings Bank, Oak Park.

St. Joseph Valley Bank, Elkhart.
Discount & Deposit State Bank, Kentland.
IOWA.

Security Trust & Savings Bank, Cedar Falls.
Peoples' Trust & Savings Bank, Clinton.
Iowa Loan & Trust Co., Des Moines.
Citizens' Savings Bank, Gilman.
Commercial Savings Bank, Mason City.
Ottumwa Savings Bank, Ottumwa.
Bankers' Loan & Trust Co.,1 (1916), Sioux City.
First Savings Bank,3 Sutherland.
Farmers State Bank,2 Vail.
MICHIGAN.
1

Commercial & Savings Bank (1915), Albion.
Eaton County Savings Bank, Charlotte.
American State Bank,2 Detroit.
Central Savings Bank, Detroit.
Detroit Savings Bank, Detroit.
Dime Savings Bank, Detroit.
First State Bank, Detroit.
1
2
8

Banks which joined the system before 1917.
Banks approved ; capital and reserve not paid.
Banks approved; capital paid, reserve not paid.




district.

DISTRICT NO. 1

CHICAGO.

449

Peoples State Bank, Detroit.
Wayne County & Home Savings Bank, Detroit.
Peninsular State Bank,1 Detroit.
Citizens Commercial & Savings Bank, Flint.
Industrial Savings Bank, Flint.
Union Trust & Savings Bank, Flint.
Old State Bank,2 Fremont.
Grand Haven State Bank, Grand Haven.
Grand Rapids Savings Bank, Grand Rapids.
Kent State Bank, Grand Rapids.
Oceana County Savings Bank,2 Hart.
Highland Park State Bank, Highland Park.
Boies State Savings Bank, Hudson.
Central State Bank, Jackson.
Union Bank, Jackson.
Lansing State Savings Bank,2 Lansing.
Lapeer Savings Bank, Lapeer.
B. Dansard & Sons State Bank,1 Monroe.
Exchange Savings Bank, Mount Pleasant.
Niles City Bank, Niles.
H. C. McLachlin & Co. State Bank, Petersburg.
St. Clair County Savings Bank, Port Huron.
Rochester Savings Bank,2 Rochester.
Romeo Savings Bank, Romeo.
Fruit Growers State Bank 3 (1915), Saugatuck.
Commercial & Savings Bank,2 St. Clair.
WISCONSIN.

Citizens Bank, Clinton.
Bank of Wisconsin3 (1914), Madison.
American Exchange Bank,2 Milwaukee.
Badger State Bank 3 (1915), Milwaukee.
Marshall & Ilsley Bank, Milwaukee.
Banks admitted previous to 1917:
Illinois
Iowa
Michigan
Wisconsin
Total
Banks admitted during 1917:
Illinois
Indiana^
Iowa
Michigan
Wisconsin
Total

.

3
1
2
2
8
19
2
8
31
3
63

Total State banks in Federal Reserve system, 71.
Applications in process of examination, 22.
1
2
3

Banks approved; capital paid, reserve not paid.
Banks approved; capital and reserve not paid.
Banks which joined the system before 1917.




450

ANNUAL KEPORT OF THE FEDERAL RESERVE BOARD.
EXHIBIT G.—Liberty

loan.

PIKST LIBERTY LOAN, SUBSCRIPTIONS BY STATES.
Illinois

$197, 315,150

Indiana

35, 323. 100

Iowa

31, 343, 850

Michigan

62, 538, 800

Wisconsin

30, 866, 100

Total

357, 387, 000

Allotment by States

1

Not available.

Allotment for district

$272,202,100

Number of subscribers

Not available.

Number of banks subscribing

About 4, 000

UNITED STATES GOVERNMENT LIBERTY LOAN BOND PARTICIPATION
CERTIFICATES.

The Federal Eeserve Bank of the seventh district issued $1,000,000
of the above certificates, subscribing for $1,000,000 of bonds to be
used in redemption thereof. The purchaser of five of these certificates was privileged to exchange them for a $50 bond.
Second Liberty

loan subscriptions,

allotments,

Subscriptions by
member
banks.

Subscriptions by
nonmember banks.

and subscribers,

Total subscriptions.

by

Allotment.

$92,927,150 $151,275,650 $244,202,800 $206,121,800
Illinois
35,895,350 33,457,350 69,352,700 67,047,100
Indiana
37,018/200
45,841,650
82,859,850 79,857,550
Iowa
68,296,750 37,765,700 106,062,450 95,473,650
Michigan .
50,199,750 27,494,550
77,694,300 72,809,300
Wisconsin
Filed "by individuals and corporations
direct with Federal Reserve Bank..
5,681,250
5,681,250
4,741,450
284,337,200

Total

301.516,150

585/853,350

526,050,850

States.

Subscribers.

451,152
172,124
247,167
323,227
]98,551
4.981
1,397,202

NOTE.—$450,473,740 had been paid in on the above allotment of $526,050,850 up to and including Dec. 31,
1917.
Expense

of the first Liberty

loan of 1917 incurred
31, 1917.

Postage.

up to and including Dec.

j Telephone
Salaries.
and
1 telegraph.

Printing,
Traveling. stationery, Expressand minor
age.
supplies.

$10,681.02 | $6,995.25 $80,254.73
Bond department
Publicity and distribution com1,564.44 1 1,538.90
2,337.25
mittees

11,327.61

19,378.47

675.33

82,591.98

11,944.16

35,323.19

1,060.72

Total




12,245.46

8,534.15
1

$616.55 $15,944.72

$385.39

451

DISTRICT NO. 7—CHICAGO.

Expense of the first Liberty loan of 1917 incurred up to and including Dec.
31, 1917—Continued.
Furniture
and equipment.

Rent.

Supper
money,
account
overtime
work.

$4,604.58

$651.65
44.00

4,604.58

695.65

Bond department
Publicity and distribution committees.
Total.

Miscellaneous.

Total.

$2,053.65
6.00

$14,001.32
10,086. 78

$136,188. 86
46,958.78

2,059. 65

24,088.10

183,147.64

Total expense

$183,147.64

Reimbursed from the Treasury Department up to and including Jan. 3,1918
Balance due from Treasury Department

169,417.34
13,730.30

AVERAGE NUMBER OF EMPLOYEES DURING THE FIRST LIBERTY LOAN CAMPAIGN
IN CHICAGO.
Bond department
125
Publicity and distribution committees
25
Total
150

Expense

of the second Liberty loan of 1911 incurred up to and including
Dec. 81, 1911.

Postage.

Bond department:
Executive committee
Publicity committee
Public speaking cornChicago committee
Illinois committee
Indiana committee
Iowa committee
Michigan committee
Wisconsin committee ...
Total..

Printing,
Furniture
Telephone Salaries
Stationery
and
and
Traveling. and minor Expressand
age.
equiptelegraph. overtime.
supplies.
ment.
$500.97 $75,378.05
10.00 13,457.88
357.41 14,196.87

64.26
20.06
1,532.38
99.03
18.24
245.36
520.64
471.93
14,055.39

1

1,480.89
300.09
4.20
101.82

48.97

14.85
248.57

741.66
1,496.67

7,222.25

1,184.22 117,905.91

9,835.66

Rent.

Bond departmentJ
Executive committee
Publicity committee
Public speaking committee
Women's committee
Chicago committee
Illinois committee
Indiana committee
Iowa committee
'
Michigan committee
1
Wisconsin committee
'
Total

$142.35
584.06

808.10
941.99
10,605.83
3*45*
279.52

$6,991.59
2,746.66
1,345.24

Magazines,
newspapers and
directories.

$2,985.00
450.00
490.00

$30.00
2.00
1,410.50

86.00
1,642.20

36.00

Miscellaneous.
$4,846.20
459.49
26,417.86
1,774.86
305. 20
2,603.12
32.40 •
86.06

5 653.20

1,478.50

36,525.19

$11,863.29
1,816.53
44,214.18

$591.75
181.50
289.05

$10,154.35
238.00
4,933.25

198.67
1,405.32
3,813.92
334.78
156.45
259.81
308.54
112.58

3.00
10.00
27.25

58.50

64,484.07

1,102.55

15,384.10

Undistributed.

Grand
total.

$113,341.20
19,504.41
94,238. 42
4,378.75
3,068.66
20,323.40
818.60
174.69
1,293.42
9,882.73
584. 51

*8,000.00
8,000.00
9,742.40
8,322. 53
2,419.04
18,011.83

$113,341.20
19,504.41
94,238.42
4,378.75
3,068.66
28,323.40
8,818.60
9,917.09
9,615.95
' 12,301.77
18,596.34

267,608.79

54,495.80

322,104.59

Subtotal.

Bond department includes depositary bank department, fiscal agent department, etc., excluding
various Liberty loan committees.
NOTE.—Up to and including Jan. 3, 1918, we have not received reimbursement from the Treasury Department for any of the above expense.




452

REPORT OF T H E FEDERAL RESERVE BOARD.

Number of employees in the service of the bond department arid various Liberty
loan committees in Chicago at the present time, and average number employed during the second Liberty loan campaign.
Present
number
(as of

Average.

Dec. 31,
1917).

Bond department
Executive committee
Publicity:
Publicity committee
Publicity mailing

Expense

4
4

140
4
10
66
10
10
8
3
4

1

.

Applicable to first Liberty loan of 1917 :
$200,000,000 certificates of indebtedness
Apr. 25, 1917; due June 30, 1917
$200,000,000 certificates of indebtedness
May 10, 1917; due July 17, 1917
$200,000,000 certificates of indebtedness
May 25, 1917; due July 30, 1917
$200,000,000 certificates of indebtedness
June 8, 1917 ; due July 30, 1917
Applicable to second Liberty loan of 1917:
$300,000,000 certificates of indebtedness
Aug. 9, 1917; due Nov. 15, 1917
$250,000,000 certificates of indebtedness
Aug. 28, 1917 ; due Nov. 30, 1917
$300,000,000 certificates of indebtedness
Sept. 17, 1917; due Dec. 15, 1917
$400,000,000 certificates of indebtedness
Sept. 26, 1917; due Dec. 15, 1917
$300,000,000 certificates of indebtedness
Oct. 18, 1917; due Nov. 22, 1917
certificates of indebtedness
Oct. 24, 1917; due Dec. 15, 1917
certificates of indebtedness
Nov. 30, 1917; due June 25, 1918

x
2 We

20
120

16

..

,,_.,.,
205

of various issues of certificates of indebtedness
including Dec. 31, 1917.

Total

188
28

8

Public speaking committee
Women's committee . . .
Chicago committee
Illinois committee
Indiana committee
Iowa committee
Michigan committee
Wisconsin nnmniittee
_,
Total

166
14

incurred

(3 per cent) dated
(3 per cent) dated
(3i per cent) dated
(3J per cent) dated
(3|
(3J
(3i
(4
(4
(4

per
per
per
per
per
per

cent)
cent)
cent)
cent)
cent)
cent)

dated
dated
dated
dated
dated
dated

(4 per cent) dated

471

up to and

$431.42
703.20
236.92
61. 93

$1, 433. 4T

299.89
549. 37
403.98
426.34
330.02

292.99
220.90

2

2, 523. 49
3, 956. 96

have received reimbursement from the Treasury Department for this amount.
Amount due from Treasury Department as of Jan. 3, 1918.




453

DISTRICT NO. 7 CHICAGO.
EXHIBIT H.—Certificate

of indebtedness

Number of
subscribers.

Per
cent.

Total issue.

Subscription.

Allotment.

June 29
June 30
July 17
July 30
do....

2
3
3
3i
31

$50,000,000
268,205,000
200,000,000
200,000,000
200,000,000

$5,000,000
16,400,000
24,893,000
23,117,000
23,215,000

$5,000,000
16,400,000
24,893,000
16,600,000
19,800,000

1
135
291
503
419

868,205,000

87,625,000

77,693,000

1,348

Nov. 15
Nov. 30
Dec. 15
....do.-..
Nov. 22
Dec. 15

3|
3|
3i
4
4
4

300,000,000
250,000,000
300,000,000
400,000,000
385,197,000
685,296,000

18,870,000
18,636,000
21,169,000
35,629,000
32,983,000
18,141,000

15,600,000
15,095,000
21,169,000
35,629,000
32,963,000
18,141,000

381
379
595
804
745
217

2,320,493,000 145,408,000 138,597,000

Date
issue.

3,121

Due
date.

Certificates issued to
Federal Reserve
Banks onlv

Mar. 31
Apr. 25
Certificates issued in May 10
anticipation o first May 25
f
Liberty loan
June 8

Call
date.

Total
Aug. 9
Aug. 28
Certificates issued in Sept. 17
anticipation of sec- 1 Sept. 26
ond Liberty loan... Oct. 18
Oct. 24
Total
Certificates issued in
anticipation of taxes

department.

Nov. 30

Dec. 6
Dec. 11

June 25

4

691,622,000

30,139,500

30,139,500

89

FEDERAL RESERVE BANK SUBSCRIPTIONS.
Mar. 31
Aug. 9
Aug. 28
Sept. 17
Sept. 26
Oct. 18
Oct. 24

$5,000,000
1,000,000
1,000,000
2,060,000
5,150,000
250,000

-

CERTIFICATES OF INDEBTEDNESS.
3 per cent
issue of Apr.
25-June 30.

I"
70|
22!
13}
17)
8i
5|

25,000 or less
25,000 to 50,000....
50,000 to 100,000...
100,000 to 250,000..
250,000 to 500,000..
500,000 to 1,000,000
Total

S\ per cent
issue of May
25-July 30.

3 per cent
issue of May
10-July 17.

£a
>

3

$1,280,000
1,020,000
1,235,000
3,650,000
3,600,000
5,615,000

3§ per cent
issue of June
8-July 30.

I-8
<
$4,631,000
1,545,000
2,312,000
2,825,000
2,410,000
11,170,000

!.§

Total.

11
I

$2, 380,000 325 $3,583,000 1,033 $11
,874,000
1, 274,000 50 2,234,000 137 6,073,000
1, 490,000 23 2,143,000
77 7,180,000
45 9,320,000
1, 545,000
6 1,300,000
34 13,225,000
3, 300,000 10 3,915,000
6, 611,000
5 6,625,000
22 30,021,000

135! 16,400,000 503 24,893,000 291 16, 600,000 419 19,800,0001,348 77,693,000

Issue of Aug. 9.
Number of
subscribers.




Number of
subscribers.

Amount
allotted.

Issue of Sept. 17.
Number of
subscribers.

Amount
allotted.

Issue of Sept. 26.
Number of
subscribers.

Amount
allotted.

$3,736,000
2,204,000
1,475,000
2,710,000
750,000
2,475,000
2,250,000

1,000 to 2 5 , 0 0 0 . . . . .
26,000 to 50,000....
51,000 t o 100,000...
101,000 t o 250,000..
251,000 to 500,000..
501,000 to 1,000,000
1,001,000 a n d over.
Total

Amount
allotted.

Issue of Aug. 28.

381

297
46
14
14
4
2
2

$3,429,000
2,042,000
1,350,000
2,303,000
1,601,000
1,290,000
3,080,000

508
45
16
16
5
2
3

$5,214,000
2,055,000
1,575,000
2,938,000
2,400,000
2,000,000
4,987,000

647
91
30
16
8
7
5

$6,743,000
3,933,000
2,714,000
3,180,000
3,040,000
4,835,000
11,184,000

15,600,000

379

15,095,000

595

21,169,000

804

35,629,000

454

REPOET OF THE FEDERAL RESERVE BOARD.
EXHIBIT H.—Certificate

of indebtedness

department—Continued.

CERTIFICATES OF INDEBTEDNESS—Continued.
Issue of Oct. 18.
Number of
subscribers.
1,000 to 25,000
26,000 to 50,000
51,000 to 100,000...
101,000 to 250,000..
251,000 to 500,000..
501,000 to 1,000,000
1,001,000 and over.
Total




588
85
36
13
14
7
2

Amount
allotted.

$6,706,000
3,670,000
3,302,000
2,585,000
6,100,000
6,600,000
4,000,000
32,903,000

Issue of Oct. 24.
Num! ber of
j subi scrib-

164
20
12

Amount
allotted.

Total.
Number of
subscribers.

Amount
allotted.

2,500
330
123
81
39
26
10

$27,048,000
14,721,000
11,546,000
15,161,000
16.130,000
2i;900,000
31,501,000

18,141,000 I o,121

138,597,000

$1,810,000
817,000
1,130,000
1,445,000
2,239,000
4,700,000
6,000,000

DISTRICT NO. 8.—ST. LOUIS.

WILLIAM MCC. MARTIN, Chairman and Federal Reserve Agent.

FINANCIAL RESULTS OF OPERATION.

For the months of January, February, March, and April, 1916, the
Federal Reserve Bank of St. Louis showed no net earnings, but in May
of that year the earnings were $1,888.47, and from that date steadily
increased month by month until in December, 1916, the net earnings
amounted to $23,191.18.
For the month of January, 1917, the earnings amounted to $18,971.82, and from that figure they steadily increased throughout the
entire year. In this connection, it must be remembered that in this
district January, February, March, and frequently April, are the
lean months, and it must also be borne in mind that war was not
declared until April of this year. I t is therefore reasonable to
presume that the earnings for these first four months in 1917 were
not due especially to abnormal conditions but, it would seem, were
due more particularly to the fact that banks had begun to realize
how easily they could do business with the Federal Reserve Bank
and were using its facilities.
Attached hereto, as Exhibit A. is a statement showing earnings
and expenses, by months, for the years 1916 and 1917. This shows
that during the year 1917 the percentage of expenses to earnings has
decreased from 39.58 per cent to 25,93 per cent.
In 1917 the earnings of the Federal Reserve Bank of St. Louis
amounted to $738,713.38, and the expenses of the bank were $236,557.34, leaving net earnings of $502,156.04.
On March 31, 1917, the bank paid a dividend for the period from
April 1, 1915, to June 30, 1915, and on June 30, 1917, it paid a
dividend for the period from July 1, 1915, to December 31, 1915.
On December 31 of this year the bank paid a dividend for the year
1916. This left a balance in the profit and loss account of $230,338.58.
COMPARATIVE BALANCE SHEETS FOR DECEMBER 3 1 , 1 9 1 6 AND 1 9 1 7 .

These comparative balance sheets, which are attached to this report
as Exhibit B, disclose an increase in the earning assets of this bank




455

456

ANNUAL REPORT OF THE FEDERAL RESERVE BOARD.

of $32,988,518.58. Last year a comparison of the balance sheets of
1915 and 1916 showed a large increase in earning assets of all classes
of investments, excepting bills discounted for member banks. This
year, as compared with 1916, the balance sheet shows a large increase
in all items excepting that of municipal warrants. In 1916 the principal source of income was open-market purchases of bankers' acceptances. During this year the largest source of income has been from
bills discounted for member banks, in which there has been a very
large increase.
An increase is shown in capital, due in large measure to the admission of State banks into the system. There is also a large increase
in deposits, both gross and net.
PROFIT AND LOSS STATEMENT FOR YEARS 1916 AND 1 9 1 7 .

During 1917 the earnings from bills discounted for member banks
were much larger than those from any other source. The percentage
of earnings derived from the various sources for 1916 and 1917 are
as follows:
1916
Bills discounted for other Federal Reserve Banks .
Bills discounted and loans to member banks
Acceptances
Municipal warrants
Interest on United States securities
Transfers bought
United States securities, profit and appreciation..
Sundry
Total -

1917
1
47
23

4
100

100

Attached hereto as Exhibit C is a comparative profit-and-loss
statement covering the years 1916 and 1917.
GENERAL BUSINESS AND BANKING CONDITIONS IN THE DISTRICT.

During 1916, from month to month, business steadily increased
until at the end of the year it was at an extremely high level. Prices
also steadily increased, but at the end of the year they had not
reached a point which had curtailed demand. It continued steady
for both luxuries and necessities.
During the early part of 1917, business continued unabated and
was not affected by the usual after Christmas dullness. However,
in the early months of 1917, what we may call unrestrained buying
wThich was in evidence in the latter part of 1916, began to lessen, and
by the latter part of February buj^ers began to discriminate.
Prices made them pause a little, both buyer and seller became more
conservative, and speculative buying in this district was about elimi-'
nated. However, the buying power of the public continued very



DISTRICT ETO. 8—ST. LOUIS.

457

large, especially in those sections of this district contiguous to Little
Rock and Memphis.
During April, 1917, business, while still active, did not increase
in the same ratio as in the past months. Reports from different
houses throughout the district in describing their business, spoke of
it as " good " and " extremely active," although on closer analysis
it would seem that while business houses were doing a large business
as measured by amounts, it was not so large when measured by the
number of transactions. In other words, there were not as many
buyers, but those who bought paid more for the product.
This country was declared to be at war with Germany in April,
1917, but business seemed to have discounted the emergency and was
well prepared. It continued during May at a high level, its tone
being one of conservatism, with a strong underlying feeling of confidence. A scarcity of canned goods became apparent and also a
scarcity of sugar.
Building began to show the high cost of material, and while it had
never been as active during the previous months as other lines, it
nowT began to fall off perceptibly.
During June, July, and August the war showed its sobering effect,
and reports from throughout the district Showed a quieter condition
in practically all lines, except munitions. Business was operated
on a conservative basis during these months. While the volume of
sales in wholesale lines continued to be large, they showed smaller
increases than for the previous months. The demand for merchandise from dry-goods jobbers became less than it had been for a number of months previous. Prices continued to increase, and showed
a decided effect on such articles as the public could conveniently do
without. Previous to this the prices of luxuries had made the
public pause, but now they began to make them stop buying. Doubtless the campaign for economy, which was then beginning, also had
its effect. However, business held up well, and collections were good.
During the latter months of the year business in general has been
ac