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THIRD ANNUAL REPORT

OF THE

FEDERAL RESERVE BANK
OF BOSTON




FOR THE YEAR ENDED DECEMBER 31, 1917

WASHINGTON
GOVERNMENT PRINTING OFFICB
1918







THIRD ANNUAL REPORT

OF THE

FEDERAL RESERVE BANK
OF BOSTON




FOR THE YEAR ENDED DECEMBER 31, 1917

WASHINGTON
GOVERNMENT PRINTING OFFICB
1918

LETTER OP TRANSMITTAL.

F ederal R eserve B a n k ,

Boston, Mass., January 15, 1918.
Si r : I have the honor to submit herewith the third annual report
of the Federal Reserve Bank of Boston covering the period from
January 1, 1917, to December 31, 1917.
Respectfully, yours,
F r e d e r ic H . C u r t is s ,

Chairman and Federal Reserve Agent.
H on. W . P. G. H a r d in g ,

, D. G.
Washington,

Governor, Federal Reserve Board




TABLE OF C O N T E N T S,
Page,

Financial results of operation................ ......................................... .. - ....... . . . . . . . .
General business and banking conditions in the district..................... ..................
Discount operations........................................................................................................
Acceptance business.......................... ................................................... . ......................
United States bond transactions. .............. ..............................................................
Municipal warrants purchased.............................. . . . . . . . . . . . . . .............................
Reserve position of the b a n k ...................... ...................................... ........................
Membership in the district........ ......................................... .......................................
Relations with member b an k s.....................................................................................
Relations with State banks and trust companies.....................................................
Policy in regard to discount rates and purchase of acceptances ...........................
Credit departm ent.........................................................*.............................. ..............
Member-bank deposits............................... ......... .................. .......................
Periodic reports regarding member banks.............................................................. .
Educational and publicity w ork........ .................................... ............................. .,
Government deposits............... .....................................................................................
Certificates of indebtedness ........................................... ....................... ...................
Liberty loan campaigns...................... .........................................................................
War-savings certificates........................... ............... .............. .......... .......... ..............
Federal Reserve note issues.............................. .......... ........................... ..................
Internal management of the bank...................... . ............... .......... - ................... ..
Check clearing and collection.................... . . , . ........................................................
Gold settlement fund................................... ........................................ ........ ........ ..
Bank of England sterling gold accou n t................................................... ..................

5
6
7
8
9
10
10
10
11
11
13
14
15
15
15
16
17
17
18
IB
1.9
20
21
21

SCHEDULES.
1.
2.
3.
4.

Income and expense.................................... .................... .......... .......... .
Comparative balance sheet, 1917 and 1916...................................................... *
Money rates in Boston....................................... .....................................................
Chart showing bills discounted, including member banks7 collateral notes
held at close of business each Friday................. ............ ................................
5. Chart showing total investments at close of business each F riday.................
6. Chart showing amount of acceptances held at close of business each Friday.
7. Acceptances purchased for own account.............................................................
8. Acceptances purchased for other Federal Reserve Banks......................... .
9. Acceptance liability of national banks..... ..........................................................
10. Chart showing cash reserve at close of business each Friday......... ................
10a. Chart showing gold reserve at close of business each Fr i da y. . . . . . . . . ___
11. Member banks liquidated during 1917......... ............................................. .
12. New members.................................................................................. - ......................
13. State banks admitted to system................................ ............................................
14. Borrowings of national banks in New England.................................................
15. Number, capital and surplus, and deposits of eligible nonmember banks..
3




22
23
24
24
25
25
26
26
26
27
27
28
28
88
29
2^

t

CONTENTS.

Page.
16. Banks granted fiduciary powers under section Ilk of the Federal Reserve
a c t ...........................................................................................................................
29
17. Banks granted permission to accept up to 100 per cent of capital and surplus.
29
18. Discount rates...........................................................................................................
30
19. Reserves of national banks in New England......................................................
30
31
20. Member banks’ deposits at close of business each F riday................................
21-22. Charts showing Government deposits.............................................................32, 33
23-24. Certificates of indebtedness..............................................................................
34
25-27. Liberty loan subscriptions and allotments....................................................
35
27a. Character of Liberty loan payments..................................................................
36
28-30. Federal Reserve note issues..............................................................................36, 37
31-32. Check clearing and collection ................................................................ ........ 37, 38
33. Gold settlement fund operations...........................................................................
38
34. Maturities of invested fun ds..................................................................................
39
35. Distribution, by maturities, of bills discounted for member banks...............
39
36. ClassiG cation, by maturities, of investments......... ...........................................
39




THIRD ANNUAL REPORT OF THE FEDERAL
RESERVE BANK OF BOSTON.

IN TKOnUCTION .

The year 1917 has been momentous in the history of this country
through its entrance on the side o f the entente powers into the great
European war against the central powers in the struggle o f democ­
racy against autocracy. The change o f financial and commercial
activities of the country, brought about by the declaration of war
by Congress, has been felt in Xew England, owing to the character
o f its industries, probably as much as, if not more, than in any other
portion o f the United States.
The Federal Reserve Bank o f 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 A pril C, 1917, but previous to that time a large portion
o f the industries in the district were occupied in manufacturing
arms, munitions, and other war requisites for the allied powers.
The high cost o f labor and o f such raw materials as wool, cotton,
leather, etc., has kept money in good demand throughout the entire
year, so that the resources o f 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 mar
ket o f bankers acceptances.
FIN ANCIAL RESULTS OF OPERATION.

The activities referred to brought the earnings o f the Federal Re­
serve Bank to a point largely in excess o f those o f any previous year
and these earnings were such that on December 20, 1917, the board
o f directors, with the approval o f the Federal Reserve Board, de­
clared a dividend at the rate o f 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 Decem­
ber 81, 1917.




5

6

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

After these dividends were paid and due depreciation o f securities
had been allowed, a balance o f $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 Reserve Act. Schedule 1 shows these earnings in detail
as compared with the year 1916.
The statement o f condition o f 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 o f the year 1916. A n in­
crease will be noted in all items making up the balance sheet, the
most notable being increases in bills discounted, in deposits o f mem­
ber banks, in Government deposits, and in gold holdings.
GENERAL B U SIN ESS A K D B A N K IN G CO ND ITIO NS I N T H E DISTRICT.

The year opened with peace overtures under discussion by the
warring nations. The uncertainty as to the effect o f an early ending
of the war influenced business men to go slow in their future com­
mitments, but the volume of business in the process o f manufacture
and orders on hand was so large as to cause great activity in prac­
tically all manufacturing lines; more especially those engaged in
the making o f 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. W ith the declaration of
war, and even before, prices o f foodstuffs began to soar and, as the
cost o f living increased, labor in all lines demanded higher wages.
The difficulty in procuring coal and the price o f that commodity
has been an important factor in the cost o f production. W ith the
declaration o f 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 o f the Government.
Early in May, business began to show unusual signs of hesitation
and the future trend o f prices grew more difficult to prognosticate,
especially with commodity prices rising and evidences of hoarding
and economy appearing.
With the successful flotation o f 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.




ANNUAL REPOET OF .FEDERAL RESERVE BANK OF BOSTON.

7

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 o f the year remained
low, but as the year advanced the tendency was toward higher rates,
strengthening with each offering o f certificates of indebtedness by
the Secretary o f the Treasury until June 15, the date o f 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 some­
what at that time, but increasing again in the early fall, when cer­
tificate offerings were renewed. As the season for crop moving ap­
proached 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 Reserve Bank became heavier and more frequent.
D ISCOUNT OPERATIONS.

During the first year and a half of operations o f this bank redis­
counts from member banks were small, never reaching during that
time $500,000. During July, 1916, these reached a high point o f
$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 o f
$ ,
,
.
During January o f the present year, rediscounts again declined to
just belowT$1,000,000 and fluctuations for the balance o f 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 o f $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 o f $10,800,000.
W ith 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 o f 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 redis­
counts o f $2,386,923 from 29 banks for the first 13J months o f opera­
tion. In other words, the bank rediscounted about 15 times as large
an amount in one day as during the entire first 13J months o f opera­
tions to December 31, 1915. This brought the total loans to
$101,000,000.

10 000 000

3 Member banks had been advised that they would be given 48 hours' notice of any
change in the discount rates then existing.




8

ANNUAL REPOBT OF FEDERAL BESERVE BANK OF BOSTON.

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 o f 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 o f Government deposits from depositary banks, the
demand on the Federal Reserve Bank from its member banks for ac­
commodation 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 Re­
serve 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 connec­
tion 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 o f the
market for outside paper, especially during the period o f the move­
ment o f cotton and, therefore, these acceptances have been bought by
the Federal Reserve Bank, largely from country banks in mill cen­
ters and with such member banks’ indorsement, and in increasing
amounts toward the end o f the year, as will be seen by Schedule 7.
Few o f the larger banks in the district have yet encouraged the trade
acceptance, still being in favor o f the single name note and the dis­
count 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 o f raw material necessary for the industries
o f the district having influenced this form o f financing. The de­
velopment of foreign bills has been most satisfactory, imported wool,
cotton, hides, and jute forming the principal merchandise thus
financed. This method o f financing has done much to develop bank­
ing relations between the United States, South America, and the
Far East.
The line o f development o f the domestic acceptance in this dis­
trict, 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 o f cotton and



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

9

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 addi­
tional 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 o f the Federal Reserve Act
and the regulations of the Federal Reserve Board.
It will be seen by reference to Schedule 6 that the investment of
the Federal Reserve Bank in acceptances has fluctuated widely dur­
ing the year. In order to strengthen the bank’s reserve these invest­
ments were allowed to run off early in the year so that in April, at
the outbreak o f the war, the bank held but $6,500,000. While the
bank has maintained a policy o f 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 o f 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 o f the purchase rate has
not always been effectual in reducing the volume o f offerings of this
character coming to the bank, for at times commercial banks were
out o f the market and other Federal Reserve Banks were giving
preference to the acceptances o f members in their own district.
While, during the development by the banks o f this country o f this
new class o f 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 o f limiting their market to the Fed­
eral Reserve Bank and a few o f 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 Reserve 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 o f similar high-grade short-time investments so as to
attract banks throughout the country to carry bankers’ acceptances
in their portfolios as secondary reserve. Schedules 7 and 8 show
the amount and character o f these purchasings.
Schedule 9 shows the acceptance liability o f national banks in
New England at date o f comptroller’s calls.
U N IT E D STATES BONDS,

Investments in United States bonds and other Government securi­
ties by the Federal Reserve Bank have not shown material increase
during the year.
54005—IS------ 2



10

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

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 o f the Federal
Reserve Act. One-half o f these bonds and similar bonds already
held by the bank were converted into one-year Treasury notes. Sched­
ule 2 shows the bank’s investments in Government securities on De­
cember 31, 1916, and December 31, 1917.
M U N IC IP A L W A R R A N TS.

Municipal warrants have been purchased by the bank only when
discounts, bankers’ accptances, and other short-time eligible securi­
ties were lacking. The increased use o f bankers’ acceptances and
trade acceptances, and the demand for rediscounts from member
banks has been so large that with the exception o f $125,000 city of
New York 3| notes, which matured on June 5, the Federal Reserve
Bank has made no purchase o f warrants.
RESKRVE PO SITION .

The reserve position o f the Federal Reserve Bank has changed ma­
terially during the year. The gold holdings o f the bank have in­
creased, but on the other hand the percentage o f reserve against
deposits, with the greater activities o f 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 A ct o f June 21; the admission o f 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 o f 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 main­
tain their former reserve until July 15.
The reserve position o f the bank at weekly periods during the year
will be found in Schedule 10, and the gold reserve on chart 10A.
Schedule 19 shows the reserve o f national banks in New England
at date o f comptroller’s calls.
M O V E M E N T OF M E M B E R SH IP .

Changes in the status o f 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




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

11

rendered their charters during the year. On the other hand, many
of the larger State institutions have joined the system, and the posi­
tion o f this bank has been materially strengthened thereby.
There are now 403 member banks in this district as against 899
at the end of 1916. The number of shares in the Federal Reserve
Bank surrendered by the withdrawal o f membership during the year
amounted to 2,295, as compared to 12,533 subscribed by new mem­
bers. The details of these changes will be seen in Schedules 11, 12,
and 13.
RELATIONS W IT H MEMBER BANKS.

Activities in connection with subscriptions to Liberty loan bonds
and the financing of such subscriptions, as well as other Government
requirements, have brought member banks into closer touch with the
Federal Reserve 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 Reserve 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 mem­
bership.
More banks have used the check-collection system and to a greater
extent, but the charge o f nine-tenths of a cent prevents banks from
making general use o f that facility, especially the country banks,
which continue to send their checks largely to their city correspond­
ents. 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 lk o f the Federal
Reserve Act has been granted to the banks named in Schedule 16.
The names o f banks authorized during the year to accept up to an
amount equal to 100 per cent o f their capital and surplus will be
found in Schedule IT.
Schedule 14 shows the borrowings o f national banks in New Eng­
land at the time of the comptroller’s calls.
RELATIONS W I T H STATE B A N K S AN D TRUST CO M PAN IES.

♦
During the past year the bank has also been brought into more
intimate relations with the State banks o f this district through gov­
ernmental 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 o f
Government funds and rediscount assistance for carrying bonds,




12

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

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 o f member banks.
Under authority o f the Federal Reserve Act, the Federal Reserve
Board ruled on May 15 that Federal Reserve Banks might rediscount
for member banks notes o f 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 A ct o f June 21, 1917, which
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 o f 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 o f 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 o f these State banks to membership has given addi­
tional strength to the reserve system, as the applications o f 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 o f State banks
admitted during the year and their deposits on admittance will be
seen by Schedule 13. There are also some 10 or more State banks
whose applications for membership are pending. In connection with
the examination o f the applying State banks, the cooperation o f the
bank departments o f the different States has been most helpful. The
special committee o f the American Bankers’ Association has also been
of value in influencing several of*the State banks to apply for mem­
bership.
Under the laws of several o f the States o f 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
o f the State banks o f the district have built up savings departments o f
considerable size and the reserve requirements o f the Federal Reserve
A ct require that 3 per cent reserve be carried against savings de­




18

ANNUAL REPOET 0J? FEDERAL RESERVE BANK OP BOSTON.

posits, this has deterred a number of State banks from applying for
membership, as have also, to some extent, the requirements of section
22 o f that act. While the laws o f all of the States in the district allow
State banks to join the Federal Reserve system, still in several o f the
States the laws are such that State banks that have been admitted
to the reserve system can not take advantage o f the reserve require­
ments 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.
PO LICY

IN

REGARD TO RATES ON REDISCOUNTS

AND

PURCHASES

OK

ACCEPTANCES.

( iovernment necessities have been an important factor in deciding
the discount policy of the Federal Reserve Bank from the time of
the declaration o f war. Early in the year, at the suggestion o f the
Federal Reserve Board, this bank, together with other Federal R e­
serve 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 o f the investment of these securities held by the bank
was thereby materially reduced and the reserve of the bank was con­
siderably strengthened. On April 6, 1017, at- the outbreak of the
war, its reserve was 76 per cent.
During the subscription period of the first Libarty 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 con­
fronted with the question what effect would be produced by Govern­
ment needs on what might be called the strictly commercial require­
ments of the district. While, under normal conditions, a rate some­
what 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, there­
fore, decided to establish a 3-| per cent rate both on the 15-day and
90-day notes secured by Liberty loan bonds.
Outside o f the marking up o f the rate on trade acceptances from
3| 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 ad­
vanced. At that time it was felt that all rates might properly be
moved up, for after the payments on account of Liberty loan sub­
scriptions 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 oi




14

ANNUAL REPORT OF FEDERAL BESERVE BANK OF BOSTON.

the discount rate at that time might interfere with the sale by the
Secretary o f the Treasury o f the United States o f 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 o f the Treasury from issuing such certificates at a rate
higher than 3| per cent. From this period on, certain o f the member
banks began to run up their lines o f discount, these banks having
demands on them not only for subscriptions to Liberty loan bonds,
but also from customers working on Government c o n t r a c t s . In
order, however, to protect the reserve of the bank, the rates for
bankers’ acceptances were steadily increased until they were about
one-lial f per cent above the rate established by the New York Federal
Reserve Bank, thereby sending those created in this market largely
to t h e N e w York bank. Although it was suggested to these member
banks that they endeavor to liquidate their rediscounts, it was finally
d e c i d e d that nothing should bs done to interfere with Government
needs, and liquidation in nonessential industries should be encour­
aged.
I f 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 Gov­
ernment 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 o f the reserve bank felt freer to establish rates based on
prevailing local conditions.
With the inauguration of the second Liberty loan the same ques­
tion as to the policy o f establishing a rate for carrying these 4 per
cent bonds came up for consideration. It was deemed inadvisable
to make any change in the previous rate o f 3| per cent, either for
15-day loans to banks secured by Liberty loan bonds or for 9G-day
loans to individuals so secured, and other rates were not raised. Here
again it was found necessary to stimulate subscriptions to Govern­
ment bonds. W ith the withdrawal o f Government deposits in De­
cember, 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 accord­
ingly 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 o f
the Federal Reserve agent, began giving more attention to the state­




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

15

ments of borrowers from member banks when their notes were offered
for rediscount, especially from the viewpoint o f eligibility. A policy
was adopted o f requiring banks to furnish statements of the makers
o f notes offered, whenever notes were for $5,000 and over. This
policy was adopted with the idea o f influencing member banks to
extend their credit departments and to give more attention to the
character o f notes offered.
DEPOSITS.

There are appended Schedules 20, 21, and 22, showing the fluctua­
tion o f member bank deposits, United States Government deposits
(general account), and United States funds deposited by the bank
us 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 o f 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 o f the increase in deposits is due to the new reserve re­
quirements of the Federal Reserve Act as amended in June, 1917,
and to the deposits of State banks admitted to membership.
Schedule 20 shows the trend o f deposits during the year. While
the policy o f penalizing banks deficient in reserves has been con­
tinued. the number of banks so penalized has been comparatively
small. Government deposits are dealt with later in the report.
PERIODIC REPORTS REGARDING M E M BER B A N K S .

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 Reserve 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 o f member banks.
Beginning December 7, weekly reports are being received from
member banks in Boston and Springfield, Mass.; Hartford, C onn.;
Providence, R. I., and New Haven, Conn., these reports being similar
in character to those which the different clearing houses have re­
quired o f their member banks. These reports should prove o f great
value in keeping the bank officials in touch with the financial condi­
tions o f the district.
EDUCATIONAL AND PUBLICITY WORK.

While the officers o f the bank have addressed bankers’ meetings
and trade organizations, the educational and publicity work has




16

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

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 o f the officials o f the bank in con­
nection with governmental operations has furnished an opportunity
for personal contact, both with the banker and business man, which
has been most beneficial. Copies o f speeches made by officers o f
the reserve system and prominent bankers dealing with the different
phases o f the Federal Reserve A ct have been sent from time to time
throughout the district.
Banks, and the public in general, have come to appreciate the
power o f the Federal Reserve system, especially in connection with
the financing o f 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 o f the potential strength of the reserve bank and the system
as a whole.
GOVERNMENT DEPOSITS.

The deposits o f the Government, both in the Federal Reserve Bank
and with depositary banks has been o f unusual magnitude and ac­
tivity during the year, as will be seen by Schedules 21 and 22. The
Government purchases o f ammunition and other war supplies manu­
factured in the district and the receipts and transfers on account
o f 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 pay­
ment amounted to over $170,000,000. The securities offered as col­
lateral against these deposits were approved by a committee con­
sisting o f Mr. Charles A. Morss, class B director o f the bank, as
chairman; Mr. A. L. Aiken, governor o f the bank; Mr. F. H. Curtiss,
Federal Reserve agent, Mr. J. H. Leman, o f Merrill, Oldham &
Co., bankers; and Mr. G. P. Fogg, o f R. L. Day & Co., bankers.
In connection with deposits o f securities made against the first
Liberty loan payments, several o f the larger Boston banks and
certain o f the Connecticut banks acted as custodians o f 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 o f banks in New Haven, H artford, and Waterbury.
Conn., when local banks acted in that capacity.




AXNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
CERTIFICATES

OF

17

INDEBTEDNESS.

The financing of Liberty loan subscriptions and tax payments by
purchase o f certificates of indebtedness issued from time to time by
the Treasury Department has been o f 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
o f money involved. The banks and the larger business houses have
appreciated the advantage of the method o f financing and have sub­
scribed liberally as each issue o f certificates of indebtedness has
been offered. Schedules 23 and 24 show in detail the amount o f these
securities subscribed through the Federal Reserve Bank of Boston
and other data of interest.
Redeposits were made with qualified depositary banks in connec­
tion with each issue o f 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.
l ib e k t y

loans

.

Immediately following the announcement by the Secretary of tlie
Treasury o f the initial offering of the first Liberty loan, a meeting of
the executive committee o f this bank was held to consider the or­
ganization of a Liberty loan committee to distribute and handle all
details pertaining to the proposed issue o f bonds. Representatives
from the more important bond houses were asked to meet and assist
in perfecting an organization to handle the necessary details per­
taining 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 practi­
cally the same. Special mention should be made o f 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 in­
terests and from that the executive committee was chosen.
The headquarters o f the executive committee were at 30 State
Street, in rooms provided bt Lee, Higginson & Co. The Federal
y
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 o f 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
.-)400o— IS------ H




18

ANNUAL REPORT OF FEDERAL RESERVE BANK OP BOSTON.

in Massachusetts. 51 in Vermont, 11 in Rhode Island, and 61 in Con­
necticut. The governors and treasurers of the different States, the
mayors o f the cities and other public officials, public-safety com­
mittees, 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
o f $332,447,000 were received and allotments were made o f
$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 o f $476,950,050. Allotments were made o f $407,713,700.
The basis o f the maximum and minimum allotment on the first loan
was on the total banking resources o f 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 o f 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 pay­
ments made and various other matters relating to these two bond
issues.
W A H -SA V IN O S CKKTIFIOATES.

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 o f Liberty loan bonds. The war-savings cer­
tificates campaign has been handled by an organization headed by
Federal appointees and has been entirely apart from the direction
and guidance o f the Federal Reserve Bank. This bank has acted
only as custodian of the certificates and stamps, delivering those
securities on the instructions o f the committee.
FEDERAL RESERVE NOTE ISSUES.

During the year, as will be seen by Schedule 28, an increasing
amount o f Federal Reserve notes has been issued each month. This
has been brought about by two influences: first, by the nonissuance
o f gold certificates of $10 and $20 denominations by the Treasury
Department, and, second, by the efforts o f the Federal Reserve Bank
to strengthen its reserve position through the acquiring o f gold held
in the tills o f member banks and in the pockets o f the public, issuing
in place thereof Federal Reserve 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 Reserve notes.
As the demand for Federal Reserve notes increased, it was found
advisable to carry a larger supply on hand not only in our own vaults,



ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

19

bill in the subtreasury and with the Comptroller o f the Currency at
Washington. A t the present time there is available $10(5,700,000 o f
such notes, a large part of which can be used at once and the balance
within 24 hours. Schedule 30 appended shows the amount o f Federal
Reserve notes o f this bank returned to us by the other Federal Re­
serve Banks and the amounts of notes outside the district returned to
issuing banks by us. Schedules 28 and 29 show Federal Reserve
notes issued and retired by the bank during the year.
While the Federal Reserve Bank has furnished currency through
the issue o f Federal Reserve notes to a considerable extent, the bank
should have facilities for furnishing currency o f all denominations
and kinds. The demand for pay-roll needs, with the increased activi­
ties in industry, has been felt increasingly during the jrear.
1X T E K X A li 0150A X IZ A T K > X .

During the year there have been held 25 directors' meetings with
an average attendance o f 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. W ing,
president o f the First National Bank of Boston, was reelected a mem­
ber o f the Federal Advisory Council.
The terms o f Thomas P. Beal, class A director, and Charles A.
Morss. class 1 director, expired December 31, 1917. A new election
J
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 II. Curtiss was reappointed by the Federal Reserve
Board as a director o f the Federal Reserve Bank of Boston for three
years ending December 31. 1920. He was redesignated as chairman
and Federal Reserve agent.
Owing to the death of Mr. Walter S. llackney on March 20. 1917.
who had been the class C director and vice chairman since October,
1914. Mr. Andrew J. Peters, former Assistant Secretary o f the
Treasury, was appointed by the Federal Reserve Board to fill the
vacancy caused by Mr. Hackney's death.
Mr. Alfred L. Aiken, who had been governor of the Federal Re­
serve Bank since November. 1914, resigned to accept the presidency
o f the National Shawmut Bank of Boston.
Mr. Charles A. Morss. formerly treasurer o f the Simplex W ire &
('able Co. o f Boston, a class B director o f the bank, was elected to
the position o f governor, taking office on December 20. 1917. Mr.
Morss has been a close student o f finance for many years, and has
been connected as director with several o f the large local banks.




20

ANNUAL REPOET OF FEDERAL RESERVE BANK OF BOSTON.

Mr. Florrimon M. Howe, who has been cashier o f the hank since
November. 1914, resigned in December to accept the vice presidency
o f the Industrial Trust Co. o f Providence, R. I., and Mr. Chester C.
Bullen, formerly assistant cashier, was elected cashier.
The organization of the Federal Reserve Bank, both from the exec­
utive and the clerical staff, has had to be largely increased during
the year, owing to the additional activities o f the reserve bank in
connection with its position as fiscal agent for the United States
Government.
A t the time of the first Liberty loan, the subscription department
and bond department was handled largely by volunteer forces, who
were liberally contributed by the local banking houses. It was
deemed necessary, however, to establish in the bank a permanent or­
ganization to handle the details incidental to the second Liberty loan
and for the handling o f 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. W illiam Willett, former
assistant auditor o f the bank, as assistant cashier in charge of the
clearing department. Mr. Harry A. Saunders, formerly head book­
keeper, was appointed assistant cashier and put in charge o f the sub­
scription department, Mr. Chester C. Bullen, assistant cashier, being
put in charge o f the entire bond department. Mr. Harry F. Currier,
former national bank examiner, was appointed chief auditor. W ith
the approval o f 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 o f the Federal
Reserve Act, and. pending the organization of a special department,
the handling of the certificates o f indebtedness. Government deposi­
taries, and securities deposited by banks against Gov ernment funds,
has been carried on in the Federal Reserve agent’s department.
With the increase o f 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 o f the directors has this matter T in d e r con­
sideration.
CLEARINGS A N D COLLECTIONS.

*

During the year the check collection department continued to ex­
pand with an increasing number o f 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 ad­
vantage of the direct routing feature of this system and send their




ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

21

items direct to other Federal Reserve Banks. About 38 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 Reserve Banks shows
a very much larger percentage of checks outside of the Federal
Reserve 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
o f this department.
G O LD -SETTLEM EN T F U N D .

The gold-settlement fund, the operation of which was outlined in
the report of 1015, has continued to become an increasingly import­
ant. 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 infini­
tesimal 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 o f this bank instead o f by the actual ex­
change of currency, and this has added to the volume of transfers
through this fund.
B A N K OF EN G L AN D STERLING GOLD A C C O U N T .

Following an arrangement made between the Federal Reserve Bank
o f New York and the Bank of England establishing relations as
correspondents in which all the Federal Reserve Banks might par­
ticipate, this bank made payment in New York for account o f the
Bank o f England on June 7, 1917, o f $3,675,000 in gold, the Bank
o f England setting aside and holding a similar amount in “ ear­
marked gold ” in London subject to this bank’s orders.
C O N C LU SIO N .

There is no better evidence o f the important position that the
Federal Reserve Bank o f 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
o f the great war loans and increased activities of the local industries




22

A.XXUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

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 Avar 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 disturb­
ance 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.
S c h e d u le l .:— Incom e and expense.

Expense.
Paid in lieu of dividends
on stock canceled............
Current expense..................
Directors’ lees......................
Rent......................................
Salaries.................. ..............
Exchange paid....................
Cost of Federal Reserve
notes..................................
Assessment for expense,
Federal Reserve Board..
Charged off:
Organization.................
Furniture and equip­
ment...........................
Difference account----Cost of unissued cur­
rency ..........................
Repairs and altera­
tions...........................
Expenses paid in­
advance .....................
Transit department,
net cost......................

1916

1917

$2,804.17
25.357.37
5,712.35
15,139.13
77.085.38
.40

$3,926.85
51,288.75
5,781.10
15,246.49
93,193.65
69.10

15,141.36

68,954.48

17,703.57

21,226.35

Income.

i
|

1916

1917

Balance January 1, 1917..

SI 1,596. 56

Discount from member
banks on—
Notes discounted___ ! $39,641. 83
302,612. 23
Rediscounts secured
by United States
1 153,039. 85
bonds.......................
Collateral notes..........
Trade acceptances___ j

2,153.23
1,50& 14 |

17,301.73
■ 43,303.20
15,352.04
88.98

8,973.83
814.83
33,666.91
10,450.00
1,462.24
8,255.87

571,117.13

Discount on open-market
purchases:
Bankers7acceptances, j
domestic*..................i 7,709.16
Bankers’ acceptances,f
foreign...................... 229,147.58
Trade acceptances, i
fnreiem__________ ___________
State, city, and town
notes......................... 78,578.27

107,831.44
377,903.14
16,662.72
5,202.73

315,435.01

507,600. as

Interest on United States |
securities.........................j 57,194.16
Appreciation and profit on
United States securities.. 20,575.00

94,784.86
11,101.60

77, 769.16

105,886.46

Commissions..................... ! 10,558.55
Penalties for deficient
To balance.

258,527.42

886,294.79

1917




597,828.54

1917

1918
886,294. 79

Jan. 2, balance forward... 258,527.42
i

138,266.25

11,596.56

361.52

450,213,90 1,209,605.24

1918

246,930.86

0.938.15
6,105.39

Satvi r iv rfis_______ J....................
»h rp
3,147. 98
Sundrv profits..................

450,213.90 1,209,605.24

Dividends paid member
banks.................................
Reserve for depreciation
on United States securi­
ties.....................................
Balance to surplus account
including payment to
United States Govern­
ment..................................

87,962.26
27,502.79

150,200.00
258,527.42

258,527.42 , 886,294.79
Jan, 3, balance..................

886,294. 79

11,596. 56

150,200.00

A N N U A L R E PO R T OF FE D E R A L RE SER VE B A N K OF B O S T O N .

23

S c h e d u l e 2 . —Comparative balance sheet Dec. 31, 1016, and Dec. 81, 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 Re­
serve notes..............................................
Bank of England sterling gold account..
Other lawful money..................................

13,745,315.28
12,725,167.81
890,002.23
1.332.000.00

. .

1 000 000.00

$65,882,359.35
9,037,506.04
609,750.00
2,194,000.00
$19,692,485.32

11.774 857.50
14,737,000.00

$77,723,615.39
18,690,900.00
1 16,977,000.00

1 2,000,000.00
!
427,683.00

3,675,000.00
3,574,566.00

26,939,540.50
With Federal Reserve agent:
Gold against Federal Reserve notes----Other resources:
!
Interest accrued on United States bonds,
Check collection expense (recoverable). . 1
Expense Liberty loan (recoverable)___
Expenses paid in advance........................j
Cost of FederalReserve notes (unissued)
Due from Liberty loan subscriptions
Due from Federal Reserve Banks..........j
Items in process of collection.................. i
Due from banks (Government deposits):
Exchanges for clearing house and cash
items.........................................................!
Federal Reserve notes and other cash
on hand....................................................!
Total assets......................................

44.917.466.00

i 13,518,385.00

40.896.820.00

13,870.83 i
8,384.44

21,958.75
i44’ i67.’62

........... i *564 *72"
29,230.20
118,035.40
4,836,i3i.06
12,592,167.39

"i5,'667" 383*44
66,489,691.55

328,149.59

3,216,597.70

815,595.87

4,661,035.81

65,257,119.92 1

253,196,771.66

LIABILITIES.

Capital fund:
Capital paid in...........................................
Surplus........................................................
Profit and loss account.............................
Deposits:
Due to member banks reserve account..
Due to FederalReserve Banks collected j
funds........................................................!
Due to banks uncollected funds.............
Due 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.............

4,989,700.00
....... 258,527.42

' " ’iso,’200.00

56,757,135.68

82,842,197.76

j
** i, 058, 988. i6 |

3,870,139.46
13,780,544.93

2,130,617.72 !
...............941. 30 ;
1 13,518,385.00 j

2,419,414.94
66,489,691.55
20,416.38
77,296,820.00

61,209.64 1

468,896.64

65,257,119.92 I

Total liabilities.

253,196,771.66

Liability for rediscount with other Federal
Reserve Banks..............................................




5,858,450.00

1 These items not included in total.

44,477,789.09

24

ANNUAL REPORT OF FEDERAL RESERVE BANK OP BOSTON.
S c h e d u le 3.— Money rates in Boston, IV11.
Feb.

Apr.

May.

June.

3 -44
3 -4?t

Demand money.
Commercial paper
Brokers' 6 months’ paper
Year money
Acceptances
Town notes_______________
Certificates of indebtedness

Mar.

34-4,
4 -4£

3Hi

4 -5
4-2-5

44-6

2 £
*-3

3 -3-1
,
4.17-4.55
3 -3>

5 -6
5 -6
5
3 -3*
4.21-5.39
3}

Oct.

Nov.

Dec.

3^
-5“

4 -5

2.09-2.70

4Mf
2 -3
^^
1.46-4.00
2

Aug.

Sept.

4i-4f

July.
Demand money......................................
4£-6
Commercial paper..................................
4J
2-5£
Brokers' 6 months, paper....................
4f-5|
Year money.............................................i 5^-5*
Acceptances.............................................! 3 -3f
Town notes............................................... 3.92-4.39
Certificates of indebtedness.................. ....................

4*-5
4*-6
4$-5&
5 -6
5 -oj
5 -6
5J
-5$
5 -51
3 -4
3|-4
3.98-4.93 4.27-4.34
34
3 -4
^

4 -5
41-5
4-J-5

] 3-50-4.12
3

4 -6
5£-6

5 -6
^
6

3|-3|
4 .24-4.51
4

4 -6

5i-6
5J-6
6
3*-3*

4.55-4.90
4

4£-6

dl-ti
6
3 -4
^

4.58-5.10
4

S ch edu le 4.— B ill* discounted, w cln din y m em ber banks' collateral notes livid at
close of business each Frida}}.

In

Jan. Feb. Mar Apr May June Juty Aug. Sept Oct Nov. Dec.




25

ANNUAL BEPOBT OF FEDEBAL RESEBVE BANK OF BOSTON.
S c h e d u le

5.— Total investments at close of business each Friday.

100
90
80
70
60
50
40
30

20
1
0
0
S c h e d u l e 6 . — Amount




o f acccptanccs held at close o f business each Friday.

26

ANNUAL BE POUT OF FEDERAL BESEBVE BANK OF BOSTON.
Schedule

1 — A cceptances purchased for own account.

Foreign acceptances.
Low
and
high
rate.

Month.
Items.

January___
February...
March. . . . . .
A pril__. . .
May*...........
June___
July.............
August.......
September..
O ctober___
Novem ber..
December. .

Domestic acceptances.

Amount,

90
.187
163
17
233
.185
67
228
409
97
373
123

$2, 522, 546. 66
4,461, 805. 32
4,803,854.46
786. 937- 47
9, 077; 342. 66
6,153,140. 45
2,320,664. 79
6, 038, 808.44
10,654,363.60
4,179, 893. 80
7,831,447.47
3,891,621.91

T o ta l... 2,172

Items.

2V-3*
2a- 3h
21- O7
;:j -;u
3 -3 t
,
3 -?A ;
3 -3-| !
3p4 :
3 i-3 f =
:
31-41

20
19

s.

20
70
22
49
102
54
79
266
766

8 , — A cceptances

Low
and
high
rate.

Amount,

$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
1,400,0^9.76
3,505,018. 51
8, 508, 144.61

i

Items. I

25,387,539.45 j
!

Total

S c h e d u l e 9 .— A cceptance

Mar.
May
June
Sept.
Nov.

4-4
4-4
4-4
4-4
4.4

228 I 3,408,339.92

Domestic acceptances.

Amount.

. Low and Items,
high rate.
P er cent.

M qy.............

8229, 553.16
24
101 ! 2,020,406.37
8
60,733.74
50
499, 881.92
45
597, 664. 73

purchased fo r other Federal R eserve Banks

Mouth.

J u n e.. . . . . .
July............
August.......
September.
November.
December..

Low
and
high
rate.

Amount.

/ ’. cL

3 -3}
3 9-s
3 ~3|
3 -35
3 -3 1
3 -3 '
3:-3'
3F*f
3s-3:
{
3-|-4
3 4-35
3H 1

Foreign acccptanccs.

February..
April..........

Items.

P. C
L

P. ct.

62, 732, 427.03

Schedule

Foreign trade acceptances.

584

£6, 207, 883.16
3,597, 019.£9
6,392, 551.36
5, 845, 222. 26
686, 000.00
9, 854, 040.11
3, 244, 386. 64
3, 881, 947.48
10,856, 513.55

1,911

50,555,564.45

252
124
255
118
8
281
78

211

2 -3
|§
3 -U

3 -;u

3 -3\
3 -3 f
3J-4

3V
-3f
3 -4
$£

Amount

$326, 327.40
1,005 828.17
1, 33/; 453.16
658, 055.21
307, 853.22
735, 022.75
173, 805.76
"i
13 I
447, 560. 70
289 | 10,514, 551.63
15
30
44
32
10

!
j
i
*
i

I Low and
|high rate.
P er cent.

3 -3g
3 -3|
3 -3|

3 -31
31-34

3 -3
.V I
3^4*

456 j 15,500,458.00

liability o f national banks in New England at date o f
Comptroller1 calls,
s

5, 1917.-_____________ _____________ _____„ ____________ _ . $24, 872, 000
1, 1917_____ __________ _______________________________ — ______
25,459,000
20, 1917„_________ „ . __________________________________ _______
83,147, 000
11, 1.917— ____________ ____________ _________ ____________ — _____
85, 082, 000
20, 1.917___ ..._______ ______________ _____ . ______ __- ....— .1 ____ 44, 500, 000




ANNUAL REPORT OK FliDKKAl. RESERVE BANK OF BOSTON.
S c h e d u l e 10. — Cash

27

reserve at close o f business each Friday.

PerCent

S ch ed u le 10A.— Total gold reserve at close o f business each Friday.




110

100

90

80

70

60

50

40

30

20

10
0

28

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
S c h e d u le

11.— M em ber hanks liquidated during 1917*

Location.

Name of bank.

Shares
surren*
dered.

Disposition.

/Form ed Hadley Falls Trust Co., Hol\ yoke, Mass.
Consolidated with Merrill Trust Co.,
Bangor, Me.
Ware, Mass.........
Succeeded by Ware Trust C o.. . . . . . . . .
Ware National Bank.........
Consolidated with Worcester Bank &
Worcester, Mass.
Worcester National Bank.
Trust Co.
Succeeded by First Auburn Trust Co.
Auburn, M e ..
First National Bank.......
Succeeded by Brooks Bank & Trust Co.
Torrington, Conn.
Brooks National B ank...
Taunton, M ass...,
Succeeded by Bristol County Trust
Taunton National Bank.
Co,
Stoneham, Mass..
Succeeded by Stoneham Trust Co____
Stoneham National Bank.
Rochester, N. H .
Succeeded by Rochester Trust C o........
Rochester National Bank..
Wiscasset, Me—
Succeeded by Lincoln County Trust
First National Bank..........
Co.
Norwood National B ank.......... Norwood, M ass.______ Succeeded by Norwood Trust Co....... .
South Berwick National Bank, South Berwick, M e.... Succeeded by South Berwick Savings
Bank & Trust Co.
Hadley Falls National Bank.
Home National Bank............ .
Second National Bank........

Jllolyoke, Mass.
Bangor, M e___

180
210

180
234
480
135
75
465
36
60
36

120
84

2,295

Total.

S c h e d u l e 12. — N e io m e m b er s.

Shares
subscribed

Location,

Name of bank.

North Brookfield National B ank................................ .
Ba'-k Bav National Bank............. . .............................. .
Tanners National B ank. .
..
. . . .
Second National B a n k ..
. .
...
Common wealth Trust C o............. . ................................
Winchester Trust Co .................................................... *
International Trust C o........... ................................
Fitchburg Bank & Trust C o............. . . . . . .
Norwood Trust C o .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
American Trust Co....... „ . . ....., .......... ...................... .
Newton Trust Co .............................. ............. .................
Industrial Trust C o .. . . . . .
........................................
Metropolitan Trust C o .. . . .............................................
Union & New Haven Trust Co.................................
Charles Ri ver Trust C o .............. .................................
Winchester National B a n k ....... . ..........................
Worcester Bank & Trust Co................ .................... .

North Brookfield, Mass
Boston, Mass................. ........... .............
Woburn, Mass..................... ................
Malden, Mass....... . . . . . . ........ ...............
Boston, Mass............... . . . . . ............ .. .
Winchester, Mass......... . . .......... ..
Boston, Mass............................... ..........
Fitchburg, Mass........... .. ......................
Norwood, Mass . . . . . . . . . . . . . . . . . . . .
Boston, Mass.. . . . . . . . . . . . . . . . . . . . . .
Newton, Mass......................... ............
Providence, R. I ......................................
Boston, Mass...................................
New iTaven, C on n ..................................
Cambridge, Mass......... . . ........ . . . . . . . . .
Winchester, Mass..................... .
Worcester, Mass.....................
.

Total_______________________________________ !

S c h e d u l e 13. — State

Name of bank.

Nov,
Bee

38
150
66
75
900
75
1,800
450
120
1,800
480
4,200
360
690
24Q
39
1,050
12,533

banks admitted to system .

Location,

Capital
and
surplus.

Deposits
when
admitted,

Commonwealth Trust Co................................ . j Boston, Mass................ $1,500,000 $18,520,000
125.000
530,000
Winchester Trust Co........................................ I Winchester, Mass... **
International Trust Co........... ........................... Boston, Mass................ 3,000,000 14, 772,000
750.000
3.485.000
Fitchburg Bank & Trust Co........ .................. . Fitchburg, Mass___
200.000
1.771.000
N or wood Trust Co.............................................. N orwood, Mass----- .. .
0
American Trust Co.............................................. Boston, Mass................ 3.000, 0 0 19,905, 000
800,000
3.629.000
Newton Trust C o................................................ Newton, Mass..............
7.000,000 ; 58, 765,000
Industrial Trust C o............................................ Providence, It. I .........
eoo;ooo ! 3.559.000
Metropolitan Trust C o............... ...................... Boston, Mass................
400,000
1.881.000
Charles River Trust Co....................................... Cambridge, Mass—
1.150.000 ; 3,156, 000
Union & New Haven Trust Co.....................
New Haven, C on n .. . .
19,700,000
1.750.000
Worcester Bank & Trust Co..................*.......... Worcester, Mass...........




ANNUAL BEPOBT OF FEDEBAL RESERVE BANK OF BOSTON.
Schedule

29

14.—Borrowings o f national banks in N eio England.
Bills
payable
with
Federal
reserve
bank.1

Accept­
Redis­
ances redis­ counts of
Money
counted
Liabilities
Total
Federal
included
borrowed
for
Reserve
elsewhere. rediscounts,1 borrowings.1 in total
Bank
borrow­
of Boston.*
ings.1

$610,000
110,000
1.740.000
7.445.000
5.177.000
5.439.000

$4.633.000
3.089.000
3.077.000
8.131.000
6.124.000
0,701,000

Date.

Dec. 27 1916.........................
Mar. 5,1917.............................
May 1,1917..............................
June 20, 1917...........................
Sept. 11, 1917...........................
Nov. 20,1917...........................

1

$14,547,000
16.299.000
13.098.000
21.376.000
15.883.000
45.479.000

$19,790.000
19.498.000
17.915.000
36.952.000
27.184.000
57.019.000

$8,849,000
8.733.000
6.951.000
6.654.000
5.738.000
15,490,000

$4,804,000
2.535.000
4.791.000
15.093.000
13.757.000
32.970.000

1 From reports to Comptroller of the Currency.
s As shown by books of Federal Reserve Bank of Boston,
S c h e d u l e 15. — Number,

capital, and surplus, and deposits, by States, o f eligible
nonmcmber banks.
Number
banks.

Capital and
surplus.

Connecticut................................................................................................
Maine...........................................................................................................
Massach usetts..............................................................................................
New Hampshire.........................................................................................
Rhode Island..............................................................................................
Vermont......................................................................................................

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

Total.............................................. ........................... .................... .

183

79,050,400

580,139,254

State,

S c h e d u le 16. — Banks

Date.

Name.

granted fiduciary powers under section I l k o f the
Federal reserve act.
Location.

1917
Jan. 29

Merrimack National Bank......... Haverhill, Mass..

29
Mar. 16
May 14
June 18

First National Bank................... Bar Harbor, Mo..
Home National Bank............... Brockton, Mass..
State National Bank................... Windsor, V t........
Webster &
Nat ional Bank. Boston, Mass.......

Aug. 20
20
Oct, 31

Manufacturers National Bank.. Lynn, Mass.........
Edgartown National Bank........ Edgartown, Mass.
National Bank of Wareham___ Wareham, Mass..

31
5
10
14
Dec. 28

Mechanics National Bank.......... Worcester, Mass..
National State Capital Bank.... Concord, N. H . . .
Plymouth National Bank.......... Plymouth, Mass..
Vermont National Bank............ Brattleboro, V t ..
Merchants National Bank......... Leominster, Mass,

Nov.

S c h e d u le 17. — Banks

Powers granted.

Trustee, executor, administrator, and
registrar of stocks and bonds.
Do.
Do,
Trustee, executor, and administrator.
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.
Do.
Do.

granted permission to accept up to 100 per cent o f tlicir
capital and surplus during 1917.

Blackstone Canal
National Bank,
Providence, It. I.
Safety Fund National Bank, Fitch­
burg, Mass.
Rartford-Aetna National Bank, H art­
ford. Conn.




Deposits.

Mechanics National Bank, New Bed­
ford, Mass.
M assasoit-Poccaset
National
Bank,
Fall River, Mass.
National Union Bank, Boston, Mass,

30

a n n u a l

report

F ED E j
RAL

of

S c h e d u le

Maturi­
ties of
15 days
or less.

Date.

Dec. 7,1916....................................
Mar 21,1917................................
June 12, 1917..................................
Oct. 23,1917...................................
Dec, 5,1917....................................
Dec. 12,1917...................................

31
3J
3*
31

4
4

reserve

bank

of

boston

.

I S .— D i s c o u n t r a t e s .

Agricul­
Maturi­ tural and
ties of live-stock Trade
16 to 90 paper 91 Accept­
days.
days to 6 ances,
months.

4
4
4
4
4^
5

5
5
5
5
5
5

4
4
4

Com­
modity
paper.

Secured b y United
States certificates
of indebtedness
or Liberty Loan
Bonds.
15 days
or less.

4
4
4
4
4

3£
23£
'3*

( 3)

16 to 90
days.

3*
®3§
4
4

1June 26, acceptances under 91 days, 4 per cent.
2Customers of nonmember banks, 4 per cent,
8Merged with commercial paper rates of corresponding maturities on Dec. 5, 1917,
S chedule

1 0 — R eserves of national banks in New England as reported by
Comptroller o f 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
1 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,(00

$51,200,000
69.920.000
73.300.000
59.040.000
2 902,000
1,303, C O
O

i Cash in vault and due from national banks, not included as reserve, $108,250,000.
* Deficiency.




31

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

S c h e d u l e 2 0 . —M e m b e r

hank deposits at close o f business each Friday.

In

Millions




100

90
80
70
60
50
40
30

20
1
0

0

32

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

Schjsduijg




21.— Treasurer of United States, general account at close of business

each Friday .

BEPORT OF FEDERAL RESERVE BANK OF BOSTON.

22.—Amount with Government depositaries each Friday,

In

(Hr
on
200

190
180
170
160
150
140
130
120
110

100
90
80
70
60

50
40
30
20
10
0




34

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.
S c h e d u l e 2 3 .— Certificates

Dated.

D e*
u

Amount issued in each denomination (in
thousands of dollars).
Rate.
$500

Mar.
Apr.
May
May
May
June
Aug.
Aug.
Sept.
Sept.
Oct.
Oct.
Nov.

29 June 29
25 June 30
1 . ..d o ...,.
10 July 17
25 July 30
8 ...d o .......
9 Nov. 11
28 Nov. 30
17 Dec. 15
28 . . . d o . ...
18 Nov. 22
24 Dec. 15
30 June 25

o f indebtedness issued at Boston.

$1,000

2

1,200

3
3
3

2,007

3
*
3i
3
A
Z
l

3V
4"
4
4
4

$5,000

2,200

3,005
3,593
1,645
1,951
4,149
3,454
2,325
1,650

301

11
,2 0

4,310
5,000
5,825
6,793
3,375
3,100
6,495
5,965
4,175
3,580

$10,000 : $100,000
..........i

Num­
ber of
sub­
scrip­
tions.

1
68

112

3,803 | 8,800
790 j . . ...........
4,050 ' 1,800
3,700
300
4,370
5,000
3,920
5.100
3,620
6.500
4,460
2,600
3.500
8,030
4.100
16,630
16,510
10,000
13,490
1,900

Paid for by
credit.

$3,000,000
13.800.000

41

105

102

37

2,000,000
11.200.000

$5,450,000

12.167.000

‘ *3,652,"000
6.500.000
4.593.000
5.195.000
12.245.000
21.349.000
27.590.000
20.090.000

18,200,000
19.400.000
15.140.000
12.171.000
22.174.000
30.149.000
33.010.000
20.921.000

6S

74
53
-62
45
126
138

Total
issued.

i Federal Reserve Bank took 12 certificates of $250,000 each.
S c h e d u l e 2 4 . — Certificates
Apr. 25,1917.
Amount allotted to subscriber. Sub­
scrib­
er.
$25,000 and less...........................
Over $25,000 to $ 5 0 ,0 0 0 ........ I
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
Over $1,000,000............................
T otal..................................

Total
amount.

8
10
6
9
3
2
3

o f indebtedness.
May 10,1917.

May 1,1917.
Sub­
scrib­
er.

Total
amount.

Sub­
scrib­
er.

Total
amount.

May 25, 1917,
SubTotal
scrib* amount.
er.

$140,000
500.000
600.000
2,110,000
1,200,000
1.750.000
7.500.000

$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
i
i
3

$432,000
506.000
770^00
1.292.000
400.000
600.000
7.200.000

13,800,000

41

51
11
3
3

68

2,000,000

105

12,167,000

68

11,200,000

r
June 8,1917.

Aug. 9,1917.

Aug. 28,1917.

Sept. 17, 1917.
|
Sub­
Total
scrib­ amount.
er.
i

Amount allotted to subscriber. Sub­
scrib­
er.

Total
amount.

$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
Over $1,000,000...........................

27
10
14
12
4
4
3

$423,000
470,000
1.230.000
2.107.000
1.520.000
2.950.000
9.500.000

21
13
7
6
1
1
4

$290,000
645.000
635.000
1,180,000
400.000
750,000
15,500,000

2

10,400,000

48
$649,000
2S
1.233.000
1.466.000
16
2.300.000
12
15
6.426.000
4 | 4,000,000
3 j 6,100,000

Total . - ..............................

74

18,200,000

53

19,400,000 | 62

15,140,000

126 | 22,174,000

Sept. 26,1917.

Sub­
scrib­
er.

Sub­
scrib­
er.
24
10
12
10
4

Oct. 18, 1917.

Amount allotted to subscriber. Sub­
scrib­
er.

Total
amount.

$25,000 and le s s .........................
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
Over $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

T otal..................................

45

12,171,000

134




Total
amount.

Sub­
scrib­
er*

8

Total
amount.

$364,000
410.000
960.000
1,680.000
1,326,000

Oct . 24, 1917.
Sub­
scrib­
er.

$806,000 1
1.129.000
2.540.000 ;
2.674.000 i
2.800.000
20,200,000 |
30,149,000

Total
amount.

Total
amount.

$525,000
35
1,060,000
24
19
1.725.000
8
1.700.000
9
4.000.000
2 ! 2.000.000
5 22,000,000
102

33,010,000

Nov. 30,1917,
Sub­
Total
scrib­
amount.
er.
11
11
4
2
6
1
2

$151,000
500.000
360.000
460.000
2,650,000
800.000
16,000,000

37

20,921,000

35

ANNUAL BEPORT OF FEDERAL RESERVE BANK OF BOSTON.
S chedule

25.— The L iberty loans.

Number of
subscribers.

Subscriptions.

Allotment.

State.
First
loan.

Second
loan.

First
loan.

Second
loan.

Total
10tal*

First
loan.

Second
loan.

Total.

68,539 68,575 $15,186,800 $24,002,850 $39,189,650 $14,332,300 $12,996,100 $37,328,400
Maine...................
New H am psh ire... 55,374 48,548 10,515,150 I 15,992,900 26,50S, 050 9.897,500 15,484,400 , 25,381,900
Vermont.................. 33,418 33, 769 7,377,650 I 10,193,250 17,570.900 6', 992,150 10,061,550 , 17,053,700
O
Massachusetts......... 613,651 444,8.9 234,747,000 325,599, S O560,346,800 177, 256,400 1273,241,600 450,478,000
Rhode Island.......... 82,391 51,429 2% 377, 700 38,803, 450 64,181,150 23,073,900 33,466,050 I 56.539,950
39,283,300 62.357,800 101,641,100 33,485,650 52,064,000 85,949,650
Connecticut............. 117,418 99,491
970,791 746,641 332,447,600 476,950,050 808,427,650 265,017,900J
407, 713, 700 672,731,600

Total..........
Additional allot­
ment transferred
from
Philadel­
phia.......................

816,300

Grand total

40S, 530,000
S c h e d u l e 2G.— Subscriptions

to L iberty loan bonds.

First Liberty loan.
Day.

Date.
1917.
May 16..........
May 17............
May 18............
May 19...........
May 21............
May 22...........
May 23............
May 2 4 . . .. . . .
May 25............
May 26----May 28............
May 29............
May 3 1 , . . ___
June 1...........
June 2...........
June 4...........
June 5...........
June 6...........
June 7...........
June 8 . . . ___
June 9...........
June 11...........
June 12...........
June 1 3 ........
June 1 4 . . . . . . .
June 1 5 ..........

Schedule

$545,800
731,700
825.150
1.168.400
7] 6,900
2 614,350
2.175.000
5,267,300
4 Sfil, 750
1,960,700
6,029,800
575,600
29,142,700
5,959,500
15, m , 750
11.932, So0
4.524.400
5,146,900
8,266,850
7.493.000
8.794.000
12,817, 250
11,710,300
12, 7S5,900
26,073,650
144,941,100

Second Liberty loan.
Total

$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
161,43?, 850
187.506,500
332,447,600

1917.
Oct. 3 ..........
Oct. 4 . . . . . .
Oct. 5 ..........
Oct. 6..........
Oct. 7..........
Oct. 8..........
Oct. 10..........
Oct. 12..........
Oct. 13..........
Oct. 15..........
Oct. 16..........
Oct, 17..........
Oct. 18..........
Oct. 19..........
Oct. 20..........
Oct. 2 2 ..........
Ont. 23..........
Oct. 24..........
Oct. 25..........
Oct. 2 6 ._____
Oct. 27. ____

$12,536,000
6.425.000
7.702.000
2.616.000
6.311.000
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.

27.— L iberty loan subscriptions and allotm ents through Federal
R eserve Bank o f B oston .
First Liberty loan.

Size of subscription.

Total
subscribed.

-$50-$I0,000...................... $203.265.000
65.605.000
$10,050-$100,000..............
22 875 000
$100,050-$250,000............
40 802.000
Over $250,000.................
Total.....................




Day.

Date.

332,447,000

Second Liberty loan.
Total
allotted.
$203 265 000
39,303.000
10 294 000
12,155 000
265,017,000

Size of subscription.

Total
subscribed.

$50-$l 0.000..................... $186,136,050
$10,050-$50,000..............
73,581,100
50,363,350
$50,050-SI 00,000.............
31,734,450
$100.050-$200,000...........
109.935.100
$200,050-SI ,000,000.
25 200,000
Over $1,000,000.............
Total...................

476,950,050

Total
allotted.
$186,136,050
73,581,100
45,327.050
23 800 850
66 268.650
12.C00.000
407, 713,700

36

ANNUAL REPORT O f FEDERAL RESERVE BANK OH' BOSTON.
S c h e d u l e 27 A . .. C h a r a c t e r uf L i b e r t y loan p(itnnenix.
FIRST LOAN.

Dato.

By cash*

!
! By credit
1 Government
j
deposits.

Certificates of
indebtedness.

Accrued
interest,

Total.

June 2 8 ... ....... ................. $71.155,707.52
90, 724* 358.88
Aug. 30 . . . . . . . . . . . . . . .

S55.851.455.32
173,622.11

$43,758.000.00 $170,765 222,84
1,330,000.00 j 92 227, 980.99

189,503.84
513,202.99

161,880,126.40

56,025,077.43

45, 088,000.00 ! 262,993,203.83

602. 706.83

T ota l,. . . . . . . . . . . . .

SECOND LOAN.
!
2 per cent paym ents. . . . . ! $4,055, 738.00
Cash sales..........................
14 245,150.00
Nov. 15............................... 55,630.311.50
Dec. 15..................
J 14,183.028.28

15.153,004.00
3.084.100.00
170.328,176.50
59,793,191.55

$9.208. 742.00
1 ................
i........................... 17.329.250.00
I $40,435,000.00 266,393,488.00
I........................... 73.869.420.00

Total 3..... ...............i 88.114,227.78 238,358,472.05 1 40,435,000.00
i
I

-----

366.800, 900,00

1106,799.83
106,799.83

1 Includes all payments after June 28, 1017.
2 Final payment is due Jan. 15, 1918,

S c rk p i lk 28.-...F ederal Reserve notes ixsit* <1.
Denomination.

1915

T ens...................................................................... .
Twenties......................... .................. .
Fifties............ ............. .
r, ..... .................
H undreds.......... ............... ...................
T o t a l . . . . .............. . . . . . . . . . . . . . . . . ........

January.

! $6,226,600
| 3,965,600
'
88, 200
!
42,000
|
102,300

10,520, 000 !
i

10,424,700

1917
$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

75, 720,000

96, 664, 700

February.

March.

April.

May.

June.
j

Fives.......... ............... SI 93,650
Tens......... .
209,100
Twenties.............
6,900
Fifties................. .
3,250
4,100
H undreds............. .
Tota l. . . . . . . . .

Denomination.

1349,955
372,110
36,110
13,850
53,200

! $264,445 §214,900
149, 800
i 189,305
2,100
S 12,700 !
j 32,250 ! 12, 750
13,300 | 12,100

$432,200
260,800
29,300
17, 000
22, 300

825,225

512,000 | 391,650

761, 600

417,000

September

October.

November. December.

F iv e s.,................... .
Tens...... .......................
Twenties......................
Fifties................
Hundreds.....................

$857,600
327, 725
33, 210
1,800
2,400

$834,700
446,400
74,900
36,450
62, 000

$1,278,110
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




Total,

29.— Federal R eserve notes redeemed.

S chedule

Denomination.

S3, 620,000
4,680,000
640, 000
600.000
980.000

f

1916

..

July.

$255, 200 8230,470
141,000
267,300
12,000
23,200
1,800 1 16,600
32,100
1,100
411,100

Total.

$6,428,330
4,651, 765
427,020
175,750
258, 700

569,670
Re­
deemed
by
United
States
Treasury.

August.
1531,450
557,100
2,800
1,050
1,300
1, 093,700
Re­
deemed
by
Federal
Reserve
agent.

$793,330 So, 635,000
732,765 3,919,000
51,020
376.000
150.000
25,750
230.000
28,700

11,941,565 1,631,565 10,310,000

37

ANNUAL REPORT OP FEDERAL RESERVE BANE OF BOSTON.
S c h e d u l e 30 . — Federal

R eserve notes o f the Federal R eserve Bank of Boston
received from other Federal R eserve B anksy and notes o f other Federal
Reserve Banks returned by Federal R eserve Bank o f B oston to bank o f issue.
Received.
1916

New York............................................................................... $1,361,750
133,380
Philadelphia...........................................................................
Cleveland.................. ................................ *..........................
13,820
15,020
Richmond...............................................................................
Atlanta....................................................................................
19,465
90,500
Chicago....................................................................................
11,480
St. Louis..........., „............... ......................... „.......................
Minneapolis............................................................................
10,440
Kansas City............................................................................
1,785
4,420
Dallas........ .............................................................................
San Francisco........................................................................
38,240
Total..............................................................................

1,680,300

Returned.

1917

1916

$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

4,270,500

3,952,600

12,012,900

1917

S c h e d u l e 31. — Volume

of checks handled for members and for other Federal
Reserve Banks, Jan. 1, 1917, to D ec. 81, 1917.

Date.

Drawn on New Eng*
la n d , including
Boston.

By whom deposited.

Items.
Jan___ Members district No. 1...........
Other Federal Reserve Banks
Total..........................

Amount.

929,029 $211,442,054
82*156 6 > 467,250
c,

Drawn on other
districts.

Items.

Amount.

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

F e b ... Members district No. 1...........
Other Federal Reserve Banks

764,681 200,232,603
72,938 66,896,145

58,600

81,996,602

823,281 282,229,205
72,938 66,896,145

Total...............................

837,619 267,128,748

58,600

81,996,602

896,219 349,125,350

Mar...

Members district No. 1...........
Other Federal Reserve Banks

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

Total...............................

1,005,280 337,996,039

A p r.. .

Members district No. 1...........
Other Federal Reserve Banks

907,369 269,959,036
94,424 93,634,390

Total...............................

1,001,793 373,593,426

67,867 118,346,778 1,069,660 481,940,204

M ay.,. Members district No. 1...........
Other FederalHeserve Banks

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

Total...............................

1,095,166 413,726,782

72,090 120,536,944 1,167,256 534,263,726

June,.. Members district No. 1...........
Other Federal Reserve Banks

990,636 376,892,158
93,428 106,836,301,

73, 771 145,650,156 1,064,407 522,542,314
95,428 106,836,301

Total................................ 1,087,064 483,728,459

73,771 145,650,156 1,160,835 629,378,615

July... Members district No. 1...........
Other Federal Reserve Banks

966,518 385,506,704
97,827 106,362,288

Total................................ 1,064,345 491,868,992

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

73,512 154,076,421 1,040,030 539,583,125
97,827 106,362,288
73,512 154,076,421 1,137,857 645,945,413

A u g ... Members district No. 1...........
Other Federal Reserve Banks

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

Total...............................

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

866,931 348,442,753
98,289 99,602,284

Total................................

78,427 131,225,648

945,358 479,66?, 401
98,289 99,602,284

965,220 448,045,037

78,427 131,225,648 1,043,647 579,270,685

O ct.... Members district No. 1........... 1,040,717 415,574,376
117,360 126,244,959
Other Federal Reserve Banks

97,447 155,269,617 1,138,164 570,843,993
117,360 126,244,959

Total................................ 1,158,077 541,819,335
......

97,447 155,269,617 1,255,524 697,088,952




J

38

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON.

S c h e d u l e 3 1 . — Volume

of checks handled for members and for other Federal
R eserve B anksf Jan. i, 1917, to Dec. SI, 1917— Continued.

B y whom deposited,

Date,

Drawn on New Eng1 a n d, including
Boston.
Items.

Amount.

Drawn on other
Districts.

Items.

Amount.

Total,

Items.

Amount,

1,000,347 $488,767,678
120,246 | 143,586,318

93,904 8155,026,132 1,094,251 $643,793,810
120,246 149,586,318

Total.............. ................. 1,120,593 638,353, G96

93,904 155.026,132 1,214,497 793,380,128

N o v . , . Members district No. 1 ..........
Other Federal Reserve Banks

Dec___ Members district No. 1...........
Other Federal Reserve Banks
Total..................... .

1,024,260 467,096,007 102,094 166,494,366 1,126,354 633,590,373
140,652 157,883,533
140,652; 157,883,533
,
1,164,912 '624,979,540 102,094 166,494,366 1,267,006 79 L 473,906

Grand total........ ........... 12,544,228 5,398,672,969 938,253 1,552,637,818 13,482,481 6,951,310,787
This schedule does not include Government checks shown in Schedule 32.
S c h e d u le 32.-—Number

o f checks drawn on Treasurer of Untied State* handled
by Federal R eserve Bank o f Boston.

Month,

January..........................
Febru ary................ .........
March . . . . . . . . . . . ................
April.............................
M ay....................................
June.....................................
July................. ...................
August. ........................
September.........
O ctober..............................
Novem ber..........................
D e c e m b e r ~ .
Total........ .

S c h e d u l e 3 3 . — Gold

Number
of
pension
checks.

Amount.

Number
of
other
checks.

10,230
2,481
28,622
8,332
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
4S6,012. 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

15,390
14,853
22,466
17,571
22,666
23,051
29',299
37,807
10,944
45,475
51,714
53,200

$3,400,482.59
2,357,041, 29
2,152.905. 95
3,400,45K '2
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

159,564

11,346,665.98

374,436

234,856,892.67

Amount
paid in
settlement of
accounts due
to other
Federal Re­
serve Banks.

New Y o r k .................................................. *1,282,707,000
254.752.000
......... ...................................
Philadelphia
Cleveland....................................................
74.426.000
Richm ond........... ......................................
40.147.000
Atlanta....................................
17.834.000
Chicago...................... ..................................
132.500.000
St. Louis....................................................
41.699.000
Minneapolis.................................................
41.871.000
Kansas C itv................... ...........................
22.856.000
Dallas....................... ...........
. .........
12.340.000
Ban Francisco.............. .........., . , ..............
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

Total.......................................... .
1,935,120,000 ; 1,794,404,000
Gain through settlement........... ........... ..!
Net loss through transfers...................................................
Net gain through transfers and settle- j
ment ................................ ................... 1
................




;
i

Amount:

1

13,918,002.58
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
3 i;243,419.19
39,531,804. 79
49,831,454. fin
51,981,432.87

534,000

i

25,620
17,334
51.088
25,903
24,354
53,362
36,829
39,654
70,464
54,204
53,186
82,002

246,203,558.65

settlem ent fund operations, Jan. 1, 1917, to D ec.
Amount
received in
settlement of
accounts due
from other
Federal Re­
serve Banks.

Reserve Bank,

T otal
number
of
checks.

Amount.

Gain
through
weekly
settlements.

Loss
through
weekly
settlements,

$190,922,000
36,377,000
7,861,000

$14,145,000
5,127,000
57.876.000
26.101.000

13,400,000
8,518,000
6,802,000
6,311,000
257,078,000
140,716,000

116,362,000
135,717,000

4,999,000

ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON,
S c h e d u l e 3 4 .—

M aturities of invested funds (not including United States bonds
or n o tes).

WithinlSdays. 16 to 30 days.

Month.
January..............
February............
March.................
April...................
May.....................
June....................
July.....................
August................
September.........
October...............
November..........
December...........

39

31 to 60 days.

61 to 90 days.

13,145,572.37
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, £33.98
12,103,702.11
8,684,667.30
11,211,333.40
16,287,214.73
10,957,876.70
9,576,917.94

$3,253,854. 30
3,956,657.32
1,945,646.21
815,956.80
5,304,956.00
9,991,796.48
5,030,152.89
6,736,081.12
13,359,830.75
6,508,997.08
34,483,180.52
41,658,773.60

53,384,387.59
4,240,441.40
6,339,579.02
6,868,449.75
5,782,614.46
13,485, £34. 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

Over 90
days.

Total.

$5,900.00 $14,917,319.23
126,977.75 16,328,968.58
17,612,094.56
12,961,399.70
15,603,813.79
35,183,627.27
100.00 30,436, v85.96
,
37,864,^91.73
386.25 37,879,987.31
34,918,852.69
71,110,155.82
74,271,501.87

S c h e d u l e 3 5 . — Distribution,

by m aturities, o f bills rediscounted for member
banks, Jan. i ,
fo Dec. S i , 1917.

Month.

1 to 15 days.

16 to 30 days.

31 to 60 days.

60 to 90 days. Over 90 days.

January.........
February___
March............
April..............
May...............
June...............
July...............
August..........
September. *.
October.........
November.. .
December___

$847,389.05
1,882,783.36
3,816,627. 87
9,118,269.32
9,493,344.80
34,571,777.01
35,073,960.03
16,902,573.21
21,307,151.47
6,770,804.48
14,243,720. 77
20,137,601.91

$102,135.52
1,015,169.53
298,484.96
18?, 268.91
428,929.21
6,196,820.77
2,760,025.49
2,179,412. 22
1,105,028.91
770,103.90
9,918,860.69
14,922,952.50

$126,008.50
702,647. 25
574,161.56
454,770.63
445,623.09
2,082,554.17
1,583,856. 80
2,936,784.55
1,567,284.14
1,274,928.51
4,086,615.21
25,837,504.02

$122,928.67
332,388.08
409,488.76
196,113.46
934,332.06
3,365,573.33
3,012,316. 60
4,358,337.48
1,768,743.98
2,389,172.12
32,169,170.13
44,947,757.06

262,077.15
580.860.00
119,432.71
233.060.01

$1,198,461.74
3,932,98S. 22
5,098,763.15
9,949,422.32
11,302,429.16
46,216,725.28
42,430,483.92
26,377,107.46
26,010,285.65
11,785,969.01
60,537,799. 51
106,078,875.50

Total. . . 174,166,003.28

39,878,292. 61

41,672,738.43

94,006,321.73

1,195,954.87

350,919,310.92

$200.00
325.00

Total,

S c h e d u l e 3 6 . — Classification

by m aturities o f investm ents (exclu sive of United
States secu rities) at close o f business D ec. SI, 1917.
15 days.

30 days.

60 days.

90 days.

Over
90 days.

Total.

Bills discounted, members. $3,321,793.09 $6,527,991.39 $6,603,533.85 $2,864,811.50 $9,116.25 $19,327,246.08
Trade acceptances dis­
counted.............................
816,660.94
287,536.22
358,906.25 1,337,449.03
2,800,552.44
Member banks1 collateral
notes.................................. 7,349,338.00
7,349,338.00
Rediscounts secured by
Liberty loan bonds.........
493,425.12 3,643,823.77 32,116,716.77
36,405,222.83
151,257.17
Foreign bankers’ accept­
ances..................................
369,734.40 1,999,559.41
100,000.00
88,302.69
2,557,596.50
Domestic bankers’ accept­
ances..................................
33,207.10
503,609.00
828,178,98 4,438,522.28; 72,500.00 5,876,017.36
_____________
Foreign trade acceptances.
346,875.40
257,016.78
603,892.18
Total.......................... 11,590,006.98 8,687,005.92 11,804,177.25 42,757,058.9 | 81,616.25 74,919,865.39
9




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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102