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TH IRD ANNUAL REPO RT OF (1 9 1 7 ) Fe d e r a l R eserve B an k OF A T L A N T A . ATLANTA, GA. January 10th, 1918 T o the B oa rd o f D irectors and M em ber B anks, Sixth F ederal R eserv e Bank Dear Sirs: W e herewith submit you the Third Annual Report of the Federal Reserve Bank of Atlanta, covering the operations of the Bank from January 1st. 1917 to December 31st, 1917. The state ment shows the gross earnings, the cost of operation, and the net earnings. On June 30th, 1917, we paid a dividend for six months due to the shareholders from July 1st. 1916, to December 31st, 1916. On December 31st, 1917, we paid a dividend for twelve months on all stock in this bank up to and inclusive of that date, thus paying to our shareholders or member banks, the dividends due them up to date. The profits arising in the bank during its operation for the year justified the payment of these cumulative dividends. In addition thereto, we wrote off the depreciation of furniture and fixtures, paid all of the expenses of operation, cost of printing and issuing Federal Reserve notes, and set aside a reserve for depreciation in addition thereto, of $24,909.00. After paying these dividends and setting aside these funds, there remained $80,000 of net profits for the year’s operations, and under the law under which we operate onehalf of this is set aside to our surplus account, being $40,000, and the other half is paid into the Treasury of the United States as a franchise tax to the United States Government. W e are glad to be able to make this statement, considering the fact that the Government has been at war with the Imperial Government of Germany since April of last year. During this time there has been floated two issues of government bonds, and this bank both at the home office in Atlanta and the branch at New Orleans are highly pleased with the results obtained in this district in the way of subscriptions to said loans; and believe that the prosperous conditions that surround us at the present time and the immediate outlook for the future will justify a larger subscription to the anticipated loan that is near at hand. During the present year we have been of service to nearly all classes of banks. We have handled the farmers’ loans, loans of the stock raiser, we have taken care of the agricultural interests and the manufacturer’s interests, and then as these crops float to the center, it has been our pleasure to take care of the commercial interests coming to us from the larger banks in the centers. W e have also been of service to the community at large, in being able to furnish a sufficient amount of currency to handle the needs of the trade for the marketing of the crops and the handling of business conditions. The reserve position of the bank has been kept sufficiently strong to meet any reasonable emergency, and in addition thereto, we have issued sufficient Reserve notes and possibly one of the largest issues of any of the twelve Federal Reserve Banks. These notes are largely secured by gold; in fact, three-fourths of the issue is covered by actual gold m the hands of the Government, and the sale of the products from this section of the country brings to us exchange, which is converted into gold reserve in the financial centers, relieving us of the outstanding lia bility on reserve notes, and creates a bulwark of strength in case there should come an immediate demand for credit in this district. We desire to express to our member banks our appreciation of their co-operation, and ex tend our best wishes for the coming year. Respectfully submitted, JOS. A. McCORD, Governor. COMPARATIVE STATEMENT OF CONDITION , 1916 1 ASSETS Dec. 31, 1917 EARNING ASSETS Dec. 30, 1916 11.895,589.16 2,628,250.00 6,497,061.67 3,888 000.00 284,372.00 503,831.60 10.347,338.98 25,814.07 588.24 2,237.36 140 875.20 United States Securities. Municipal warrants ........ Bill of Lading drafts....... 2,414,133.02 550,000.00 4,447,696.96 2,534,000.00 401,509.00 25,697.104.43 Bills discounted— Members ............... Member banks’ collateral notes....... . 14,386.66 20,314.87 517.43 102.500.00 12,282.26 MISCELLANEOUS ASSETS Interest accrued on U. S. Securities....... . Cost of unissued F. R. Notes..................... . Other deferred charges................................ Bank premises............ .................. ................ Furniture and equipment............................ Due from Treasurer of the United States.. 45,694.07 215.208.94 150,001.22 2,182.401.91 Total.................... 5,312,435.71 4,819.11 341.704.52 825.242.33 21.806.71 DEDUCTIONS FROM DEPOSITS Due from member banks— Overdrafts Due from banks and bankers .............. 354.061.46 2,552616.60 56,940.23 2 395.950.00 232250.00 14,011,092.75 5,117,731.24 21,785,312.95 11,623.739.62 1 909,030.00 43.500.00 407.51 Checks and other cash items........ ... -................. Nat’l bank notes and notes of other F. R. Bank Other mutilated currency fwd. for redemption.. Deferred debits— Transit account.. .................... 1,677.795.00 1.241,765.00 180,000.00 160.83 OTHER CASH ON HAND N atl bank notes and F. R. notes of other banks.. Federal Reserve notes on hand............................... Mutilated F. R. notes fwd. for redemption.. ....... Nickels and cents............................. .......................... 1,952,937.51 Total..............-............................. 3,099 720.83 CASH RESERVE Gold with Federal Reserve Agent.......... Gold Settlement Fund............ ........ .......... ... . Gold coin and certificates. Legal tenders, Silver, etc... Total.. TOTAL ASSETS 50,701,320.00 12,482.000.00 1,119.140.98 1,575,000.00 5.717.322.72 415,715.00 7.439.000.00 348,778.29 5,246.531.07 82,626.00 72,010.498.70 13,116,935.36 121.661.062.53 38 337/736.01 COMPARATIVE STATEMENT OF CONDITION— Cont’d LIABILITIES CAPITAL AND PROFITS Dec. 31,1917 Dec. 30,1916 Capital paid in..................... .................................................................. _$ 2,812,750.00 $ 2,450,000.00 Surplus ..................................................................................................... 40,000.00 Profit and Loss........ ................................................................................. 10,120.04 Due Government of the United States— franchise tax.................... 40,000.00 2,982 750.00 2,460,120.04 Unearned discount..................... Reserved for depreciation.......... Service charges (net receipts),. 65,157.01 59,492.92 23,711.45 460.64 2,483.24 Total.............. 124,649.93 26,655.33 MISCELLANEOUS GROSS DEPOSITS II. S. Government deposits........ Due to Federal Reserve Banks... 4.476.782.74 3.821,076.20 1,334 971.71 5.762,247.41 36,849,923.90 21,812,983.12 15,978.73 53.885.12 145,465.61 70,941.30 97.903.27 115.280.00 8.739 936.64 58.727.49 Cashier's and Expense Checks............................. Dividend checks ...................................................... Due to non-member banks— .Collection account... Federal Reserve Bank drafts............................... 51.776.242.60 31.579,860.64 Federal Reserve Note liability 4,271,100.00 66.867.420.00 121.661,062.53 38.337 736.01 PROFIT AND LOSS ACCOUNT FEDERAL RESERVE BANK OF ATL 4NTA (Including New Orleans Branch) ( Gross earnings for 1917................................................ ........................ LESS— Expenses of operation, including current expense of Bank S $ Cost of Federal Reserve Notes................................................. Depreciation of furniture and fixtures and bank premises Reserved for depreciation.......................................................... 149.02127 69.128.22 10,677.80 24,903.00 541,822.74 253,739.29 288,083.45 10.120.04 Total net earnings to date.. Profit and Loss January 1, 1917.. ............. 298,203.49 Dividends paid during 1917.. Carried to Surplus.................. United States ......... 218.203.49 40,000.00 40,00(1.00 298.203.49 40.000.00 40,000.00 80,000.00 TOTAL PROFITS TO DATE Surplus Franchise tax paid to Government of United States Dividends paid to date.............................................. ............................... 421.229.9fi T otal......................-............................................................ 501,229.96 OFFICERS M. B. WELLBORN, Chairman of the Board and Federal Reserve Agent EDW. T. BROWN, Deputy Chairman of the Board JOS. M. SLATTERY, Asst. Federal Reserve Agent JOS. A. McCORD, Governor J. B. PIKE, Cashier M. W. BELL, Assistant Cashier W. B. ROPER, Assistant Cashier W. R. PATTERSON, Assistant Cashier W. ALBERTSON, Auditor G. A. HAGAN, Assistant Auditor DIRECTORS EDW. T. BROWN, Atlanta, Ga. W. H. KETTIG, Birmingham, Ala. F. W. FOOTE, Hattiesburg, Miss. J. A. McCRARY, Decatur, Ga. W. H. HARTFORD, Nashville, Tenn. EDGAR B. STERN, New Orleans. La. L. P. HILLYER, Macon, Ga. P. R. KITTLES, Sylvania, Ga. M. B. WELLBORN, Anniston, Ala. DIRECTORS, N EW ORLEANS BRANCH FRANK ROBERTS, Lake Charles, La. A. P. BUSH, Mobile, Ala. J. E. BOUDEN, Jr., New Orleans, La. JAS. E. ZUNTS, New Orleans, La. H. B. LIGHTCAP, Jackson, Miss. EDGAR B. STERN, New Orleans, La. MARCUS WALKER, New Orleans La. MEMBER FEDERAL ADVISORY COUNCIL CHAS. A. LYERLY, Chattanooga, Tenn. COUNSEL HOLLINS N. RANDOLPH, Atlanta, Ga.
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