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SIXTH ANMJAL REPORT of the Federal Reserve Bank of Boston FOR THE YEAR ENDED DECEMBER 31, 1920 BOSTON, MASS. SIXTH ANNUAL REPORT of the Federal Reserve Bank of Boston FOR THE YEAR ENDED DECEMBER 3 1 , 1920 BOSTON, MASS. LETTER OF TRANSMITTAL. BOSTON, MASS., March 1, 1921. SIR: I have the honor to submit herewith the Sixth Annual Report of the Federal Reserve Bank of Boston covering the operations of that bank for the period from January 1, 1920, to December 31, 1920. Respectfully yours, FREDERIC H. CURTISS, Chairman and Federal Reserve Agent. Hon. W. P. G. HARDING, Governor, Federal Reserve Board, Washington, D. C. TABLE OF CONTENTS Page Officers and Directors Introduction Review of Industrial Conditions Review of Banking Conditions Statement of Condition Financial Results of Operations Loan and Discount Operations Discount Rates Bankers' Acceptances Trade Acceptances United States Securities Reserve Position Deposits Currency Check or Transit Department Collection Department Relation to Banks and the Public Credit Department and Bank Examinations Internal Organization Banking Quarters Federal Reserve Society Fiscal Agency Department Certificates of Indebtedness Government Savings Securities Conclusion 5 7 10 13 14 14 15 16 17 18 19 19 20 21 21 22 22 23 24 24 25 26 26 27 27 SCHEDULES. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Comparative balance sheet Income and expense Distribution of earnings Discount and Loan Transactions Average holdings, earnings and average rate of earnings, of total earning assets Reserve position on the first of each month, 1920 Transactions with other Federal Reserve Banks Summary of weekly transactions in the gold settlement fund with other Federal Reserve Banks during 1920 Currency transactions Federal Reserve bank notes aggregate as of December 31, 1920 Federal Reserve notes issued by Federal Reserve Agent Federal Reserve notes issued and retired by denominations Movement of Federal Reserve notes between districts, 1919 and 1920 Available supply of Federal Reserve notes on December 31, 1920 Amount of checks handled by the Transit Department Custody department—Volume of securities handled Custody department—Character of securities held December, 1920 Number of time items received for collection and amounts collected Certificates of indebtedness sales and payments. Subscriptions to certificates of indebtedness classified by states 3 29 30 30 31 32 32 33 33 34 34 34 35 35 36 36 37 37 37 38 39 4 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Page 21. United States certificates of indebtedness redeemed from January 1, 1920 to December 31, 1920 22. Items of interest from the schedules of this and other reports in connection with the fiscal operation of the United States in this district, 1920 23. Sales of Treasury savings stamps and certificates 24. Liberty loan conversions 25. Coupons of United States obligations redeemed, 1920 26. Change in membership of national banks 27. List of member trust companies 28. Member and non-member eligible State banks compared 29. Classification according to nature of business of unsecured loans of $100,000 and over as of December 23, 1920 30. Amounts due and loans to member banks by States, December 31, 1920 and 1919 31. Reserves of national banks in New England as reported by the Comptroller of Currency 32. Comparison of loans and deposits of Boston and country banks 33. Comparison of items reported by member banks in selected cities on the first Friday of each month, 1920 34. Acceptance liability of national banks in District No. 1 35. Acceptance liability of all banks in District No. 1 36. Member banks authorized to accept drafts and bills of exchange up to 100% of their capital and surplus 37. Other accepting member banks 38. Non-member accepting banks and other acceptors in this district 39. Banks granted fiduciary powers under the Federal Reserve Act 40. Discount rates 41. Money rates in Boston, 1920 42. Debits to depositors' accounts by the Clearing House banks in the larger cities of this district 43. Permits for new construction in the leading cities of New England 44. Imports and exports through the port of Boston, 1920 45. Commercial failures in New England 46. Number of employees in the various departments December 31, 1920, and December 31, 1919 39 39 40 41 42 43 43 44 44 45 45 46 47 48 48 49 50 50 51 52 53 54 55 55 55 56 CHARTS. A. Cash reserve held by Federal Reserve Bank against deposit and note liability B. Percentage of cash reserve actually held against combined deposit and note liability C. Adjusted percentage of reserve against deposit and note liability D. Monthly average reserve ratio E. Reserve accounts of member banks carried in Federal Reserve Bank F. Federal Reserve notes in actual circulation G. Bills discounted and bought eliminating transactions with other Federal Reserve Banks H. Holdings of acceptances purchased in the open market I. Retail Trade Conditions in 1919 and 1920 as reflected by 8 Boston department stores J. Fluctuations in the cost of living and price indices 1914-1920 57 58 59 60 61 62 63 64 65 65 EXHIBITS. A. Table showing movement of principal earning assets, gold and cash reserves, Federal Reserve note and net deposit liability, and reserve percentage of the Federal Reserve Bank of Boston during 1920 68-69 B. Chart showing movement of earning assets, Federal Reserve Bank of Boston 70 C. Chart showing net deposit liability, Federal Reserve note circulation, cash reserves and reserve ratios, 1920 71 FEDERAL RESERVE BANK OF BOSTON OFFICERS AND DIRECTORS 1920 Officers CHARLES CHESTER WILLIAM WILLIAM KRICKEL A. MORSS, Governor. C. BULLEN, Deputy Governor. W. PADDOCK, Deputy Governor. WILLETT, Cashier. K. CARRICK, Secretary FREDERIC H. CURTISS, Federal Reserve Agent. CHARLES F. GETTEMY, Assistant Federal Reserve Agent. HARRY F. CURRIER, Auditor. FRANK W. CHASE, Assistant Cashier. ELLIS G. HULT, Assistant Cashier. WILLIAM N. KENYON, Assistant Cashier. ERNEST M. LEAVITT, Assistant Cashier. HARRY A. SAUNDERS, Assistant Cashier. L. WALLACE SWEETSER, Assistant Cashier. Directors Class and Group A 1 THOMAS P. BEAL, A 2 F. S. CHAMBERLAIN, A 3 EDWARD S. KENNARD, B 1 PHILIP R. ALLEN, B 2 EDMUND R. MORSE, B 3 CHAS. G. WASHBURN, C FREDERIC H. CURTISS C ALLEN HOLLIS, C JESSE H. METCALF, Term Expires President, Second National Bank, Cashier, New Britain National Bank, Cashier, Rumford National Bank, Paper Manufacturer, Bird & Sons, Treasurer, Vermont Marble Co., Director, Wire Goods Co., Chairman, Vice-Chairman, Lawyer, President, Wanskuck Co., ARTHUR H. WEED, Counsel. Member of Advisory Council PHILIP STOCKTON, President, Old Colony Trust Company. Boston, Mass. 1923 New Britain, Ct. 1922 Rumford, Me. 1921 E. Walpole, Mass. 1923 Proctor, Vt. 1922 Worcester, Mass. 1921 Boston, Mass. 1923 Concord, N. H. 1921 Providence, R. I. 1922 NEW BUILDING OF THE FEDERAL RESERVE BANK OF BOSTON PEARL, FRANKLIN AND OLIVER STREETS SIXTH ANNUAL REPORT OF THE FEDERAL RESERVE BANK OF BOSTON. INTRODUCTION. The great business activity which marked the last half of the year 1919 continued well into the year 1920 bringing with it a new high level of prices, followed in the late Spring by a slowing down in industry and a decline in commodity prices which continued to the end of the year, prices declining from 25 to 30 per cent, on an average, leaving accumulations of stocks of all kinds of merchandise in the hands of the merchant and the manufacturer. New England, as well as other parts of the country, had the same experience with these fluctuations in commodity prices as was common with the rest of the world, and the policies of the Federal Reserve Bank of Boston have been dictated by the effort to minimize the financial results of these extreme fluctuations in the business of this district as far as it was possible so to do. The officials of the bank realized the dangerous conditions which were developing early in the year and in January established a general increase in discount rates' as a warning to its member banks against further expansion and urged contraction where excessive credit lines had been granted. The interference with traffic through heavy snows and railroad embargoes soon emphasized the possibility of overproduction in the district, and this advance in discount rates should have been taken as a warning by business men as well as by the banks that conditions were getting critical, but these signs were not apparent to some business men who saw only prolonged prosperity ahead. Since these increases in discount rates did not appear to be effective a second general increase in rates was made on June 4, when the rates on commercial paper were advanced to 7 per cent. At the beginning of the year 1920 the loan of the Federal Reserve Bank of Boston, owing to discounts made in this district, was about at its peak,' standing at $289 millions, of which amount it had been necessary to rediscount some $60 millions with other Federal Reserve Banks, largely those in the South and West, while the bank's adjusted reserve then stood at 27 per cent.; but, through the co-operation of the heads of some of the large banks in the district, pressure was brought on borrowers in specu> See Schedule No. 40. > See Chart G. 8 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. lative lines of merchandise to reduce their inventories and prepare for a decline in prices. These arguments were not listened to with any degree of willingness in the early part of the year but, as time went on, it became more and more apparent that prices were too high, and probably the business men of the First Federal Reserve District realized as early as those in any other part of the country that a change was coming. The result was that the loans of member banks at the Federal Reserve Bank began to decline, until in August they were reduced to approximately S120 millions. The situation was greatly helped by the liquidation of loans in the banks secured by Government obligations, many Liberty Loan Bonds being sold even at the prevailing low prices, and loans against them paid off by those who had borrowed to make subscription for the Bonds. The pressure of declining prices became very severe on the business community in the Fall of the year when markets for nearly all kinds of commodities became demoralized to such an extent that it was almost impossible to sell goods and, therefore, impossible to further liquidate loans to an appreciable amount. This condition was aggravated by the extensive movement for the cancellation of orders, a movement which was more widespread than ever before in an effort to obtain relief from contracts which had been made at prices too high to allow goods to be sold for a profit. In fact it appeared to become quite an ordinary business request to have contracts which had been entered into in all seriousness and good faith by both parties either cancelled or modified. The result of this movement became almost disastrous because it led to manufacturers not only being loaded up with stocks of raw material which they had purchased to complete orders, but also with finished goods which they had supposedly sold but which had been thrown back on them, making in many cases a burden almost impossible to carry. By this process, when the requests for cancellations were successful, manyfirmsavoided some losses which they would otherwise have incurred, but they probably suffered fully as much or more because their own goods were in turn thrown back on them. It was an unfortunate demonstration of the weakness of the moral obligation of contract, and it is to be expected as a result of this experience that firms will take care to make their contracts for sales more binding in legal form than they have been hitherto. At the time the rate of discount on commercial paper was raised in June to 7 per cent., the rate of discount on notes secured by Government bonds was fixed at 6 per cent, and on notes secured by Certificates of Indebtedness at 5J/2 per cent. From that date no change was made in the discount rates during the remainder of the year. The decline in the demand for goods, caused by the fall in commodity prices, resulted in the shutting down to a greater or less extent of most ANN'UAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 9 of the textile mills and also of the boot and shoe factories in New England; in fact, this movement was quite general in all the industries. In the Connecticut brass mills, for instance, the curtailment of production was quite severe, the result being that many operatives worked only part time in the last six months of 1920. The latter part of the year a movement was started for a reduction of wages and, while it did not attain great proportions before the end of the year, the tendency toward lower wages has been plain and probably will result in wage reductions for a great number of people early in 1921. There were no long term bonds issued by the Government during 1920 but Certificates of Indebtedness were offered' from time to time, in order to carry the floating debt of the Government, amounting to about S3851 millions. As large amounts of these Certificates were made payable on the dates when taxes were due, the total amount of this floating debt was reduced considerably on these dates, but new issues soon increased the amounts again to about the previous level. The offerings of the Federal Reserve Bank of Boston to the New England banks were in the usual proportion to previous issues of Certificates, but the banks did not buy them freely, with the result that this bank was not able to place its full quota in a number of issues. This reflected the feeling in New England that it was necessary for people to conserve all of their resources in order to liquidate their bank loans, and a change did not come in this feeling until the last issue of Certificates was offered on December 15th, when the quota of the Federal Reserve Bank of Boston was about S42 millions, while it received subscriptions for about S49 millions. To be sure, these were offered at attractive rates—viz. 5-54 and 6 per cent., but similar rates had not attracted subscriptions earlier in the year, and, therefore, the liberal subscriptions received for this issue seemed plainly to indicate an easier condition and to foreshadow a probable easing of interest rates early in the year. During the latter part of the year, country banks in this District were comparatively small borrowers at the Federal Reserve Bank and the number of borrowing banks was reduced from 267 on January 1, 1920, to slightly over 230 on December 31, 1920. Most of the borrowings of the country banks were made on Government obligations because of the lower rate of discount. The subscriptions of the country banks to Certificates of Indebtedness during the year were quite small, neither did they buy any great amount of commercial paper. On the other hand, the market for bankers' acceptances has gradually widened as this form of investment has become better known. The result is that there has been a good market for acceptances during the year among the country banks in 'See Schedules Nos. 19 and 20. 10 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. this district so that at no time has the Reserve Bank had an undue amount of this class of paper in its portfolio. It is probably true that the local demands of the country banks absorbed most of their resources so that they did not have a large amount for outside investment at any time. On the other hand, the demands of their local customers did not make it necessary for them to borrow excessively at the Federal Reserve Bank. As the year closes, the Federal Reserve Bank has an adjusted reserve of over 60 per cent., after excluding loans of some $18 millions to other Federal Reserve Banks, and not only has the Reserve Bank been loaning freely to the other Federal Reserve Banks during the last half of the year, but it has at the same time provided its member banks with practically all the loans that they required. There never has been any attempt on the part of the officers of this bank to dictate to its member banks the class of loans that they should discourage, as it was felt that member banks could make better use of their money, both for their customers and the general business community if left free to use their own judgment. Where, however, any particular member bank had expanded its loans beyond recognized limits of prudence or sound banking judgment, reasonable efforts have been made to help it reduce its loans to a more normal or safe condition. It is felt that every merchant in the District has received during the whole of the year 1920 the full amount of accommodation to which he was entitled, based on the statement of his condition which he made to his bank, and one proof of this fact is that the failures in this District have been comparatively few and unimportant. REVIEW OF INDUSTRIAL CONDITIONS. The year opened with business and industry still under the spell of the post-war influences which, during the last months of 1919, had produced conditions of feverish activity such as had never been known in New England prior to the war. The purchasing power of thousands of wage-earners in the textile centers and factory towns of the district and of the public generally, created by wages and profits which had reached unprecedented levels, was being exercised with such extravagance and apparent disregard for the future as to cause grave apprehension on the part of every thoughtful observer; yet, as early as January, isolated instances began to be reported which seemed to indicate that the limit in this respect had about been reached. Many business concerns still seemed, however, to be acting on the assumption that credit expansion and rising prices were to continue indefinitely, but bank reserves had ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 11 already reached a point which indicated that credit had been extended to the limits of prudence. By February evidence had accumulated which seemed to point to a fall in commodity prices in the near future, although no important price reduction had as yet reached the consumer. Mills and factories throughout the district were increasing their output. More timely and prompt deliveries of goods than had been experienced in many months were filling up the shelves of retailers, but the gradually diminishing number of buyers was beginning to cause the return of goods to manufacturers and jobbers, heavy snows blocking transportation and embargoes emphasizing the situation. Manufacturers also were beginning to hesitate in the matter of purchasing raw material, and deflation of bank credits was being felt throughout the District. It began to look as if the preaching of the doctrine of increasing production for the purpose of filling up the world's empty shelves caused by the wastage of war, was having its effect and that a surplus, at least of goods for domestic needs,-was piling up with no present prospect under existing exchange and international credit conditions, of the disposal of the surplus to European countries. While labor during this period remained generally stable, the situation in the textile industries in this respect was somewhat unsettled, large bodies of operatives going on strike for higher wages, but with as yet no apparent vision of the conditions which were to set in later in the year. By the middle of May, pressure on manufacturers, especially of shoes and cloth, for lower cost goods was being noticeably felt; large department stores, and shops specializing in wearing apparel, began liquidating inventories by means of appreciable price reductions just at a time when they would normally have been expecting a brisk trade in summer goods, while cancellations of orders were being noted to an increasing degree. By early summer it was apparent that curtailment in purchases by the consumer was beginning to cause the brakes to be applied to industrial activity. Nevertheless, the influences at work among the consumers had not yet reached back to manufacturers and wage increases of 15 per cent, were announced in the largest textile centers of New England which affected substantially all the 300,000 or more operatives in the cotton and woolen mills of the district. Early summer saw even greater stagnation in the leather and shoe industry, production in the former reaching an extremely low level with quantities of merchandise on hand extremely high. Numerous tanneries closed down altogether. Shoe manufacturers were suffering from unprecedented cancellations and returned goods, which in numerous cases they placed upon the local markets to the great discomfiture of retailers who were unable to liquidate inventories except at heavy losses. Even more critical was the condition in the wool industry, of which 12 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Boston is the country's center, caused by accumulations of vast quantities of this commodity both in the local market and abroad. Under the circumstances, it is not surprising that one factor which had been unquestionably a prime influence in the rapid rise of prices during the preceding year—namely,—speculation in commodities, had been to a very large degree, eliminated from the channels of trade. In the textile industry, especially the woolen, and in the shoe and leather centers, mills and factories were closing down altogether or running on short time with thousands of operatives out of employment or living on reduced earnings even if at higher wage rates than formerly. Strikes and labor difficulties under these circumstances were diminishing, and employment offices were reporting a surplus of machinists, mechanics, general factory workers and clerical help looking for employment. By early autumn, these conditions began to affect noticeably the mills engaged in the manufacture of cotton goods which had thus far seemingly escaped to quite an extent the general depression which had affected the woolen goods and the boot and shoe industry, and by another month other leading industries in this section were feeling the effect of the economic influences of the time. The year closes, therefore, with general industrial conditions in marked contrast with those prevailing in December, 1919. Nevertheless, industries on the whole in this district are far from being at a standstill. Mills and factories are endeavoring, on the basis of reduced wage scales, which in many instances have been brought back to the levels of 1919, and by operating on part time schedules, to keep machinery moving. They are producing goods for which they are confident there must shortly be a demand because of the belief that the stocks of the retail dealers are being depleted to the point where they will soon feel obliged to come into the market; although certain leading department stores reported stocks held during the year as surpassing all previous records, standing in November at the highest point of the twelve months. The latter also claim that sales each month of 1920 exceeded in value those of the corresponding months of the previous year. Although the spring season was retarded by the protracted winter weather, and the public restrained its patronage somewhat when confidence in the then prevailing price level was shaken by unexpected mark-downs by a well known New York department store, the fall season witnessed the unusual phenomenon of special sales by merchants immediately prior to Christmas which, with the usual Christmas buying, swelled the total of autumn sales to an appreciably larger amount than in 1919. Notwithstanding the strained condition under which industry was being carried on, the commercial failures in New England'according to Dun's Agency, for 1920 numbered 883 with liabilities of $20,334,092 as 'See Schedule No. 45. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 13 against 812 in 1919 with liabilities of $12,812,487. While this was an increase of 9.2 per cent, in the number of failures and 58.6 per cent, in the amount of liabilities, the percentage increases for both the number and amount of liabilities were the smallest reported for any section of the country, and compares with an increase of 37.7 per cent, in number and 160.5 per cent, in amount for the whole United States. REVIEW OF BANKING CONDITIONS. The member banks in the First Federal Reserve District have gone through the year in a most satisfactory manner, having adjusted their business to meet the changing industrial conditions.' There have been no failures among member banks during 1920 and, while a few banks have at times become somewhat over-extended in their loans, liquidation of these to proper limitations have been gradually brought about through the help and co-operation of the Federal Reserve Bank. The failure of several of the smaller Boston trust companies in the early Fall caused but temporary disturbance to other banking institutions. These trust companies had large savings deposits and handled a character of business peculiar to themselves and, therefore, their closing was little felt by other institutions. The condition of banks outside of Boston has changed but little during the year, as the pressure due to price readjustment has fallen largely' on the Boston banks. Country banks have bought but a small amount of commercial paper during the year although they have been buyers of Government Bonds and bankers' acceptances. Concerns, therefore, that have been accustomed in the past to rely on the outside market for loans have been obliged to increase their borrowings with their city banks. A comparison of the returns made by the banks in the District shows a marked decrease during the year in loans secured by Government obligations held both in the outside banks and Boston banks. On the other hand, both classes of banks show an increase in commercial loans. Demand deposits during the same period have declined, especially of Boston banks, while time deposits have increased, the increase being largely with outside banks. The country banks have been able to steadily reduce their loans at the Federal Reserve Bank, while the Boston banks, owing to their deposits declining faster than their loans were paid off and to seasonal demands of the District, although showing a satisfactory reduction since their high point early in the year, have increased on the other hand from the low point of August and September, and these banks have been fairly constant borrowers during the entire year at the Federal Reserve Bank. •See Schedules Nos. 30, 31, 3Z, 33. 14 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. STATEMENT OF CONDITION. A comparison of the statement of the condition' of the Federal Reserve Bank of Boston on December 31, 1920, with that of the same dates in 1919, 1918 and 1917 shows several interesting changes. It will be noted that bills discounted secured by U. S. War Obligations have decreased materially from the preceding two years, and, on the other hand, commercial bills have increased considerably. Gold reserves held by the bank against deposits and by the Federal Reserve Agent against Federal Reserve Notes have largely increased, while the gold held with Foreign Agents has been greatly reduced; whereas in previous years rediscounts were carried with other Federal Reserve Banks on the date of these statements, this year it will be seen that the Reserve Bank is loaning to other Federal Reserve Banks. The surplus account has been increased until it exceeds the subscribed capital, the paid-in capital shown being 50 per cent, of the amount subscribed by member banks. The reserve account of member banks has declined, the falling off of deposits of member banks requiring smaller reserves to be carried with the Reserve Bank. The increase during 1920 of Federal Reserve Notes in circulation, while not so large as in the previous periods, is considerable. More detailed comments on the changes in the statement will be found elsewhere in this report. FINANCIAL RESULTS OF OPERATIONS. The heavy increase in loans to the member banks in this District and rediscounts for other Federal Reserve Banks, together with increased discount rates, has naturally brought unusually heavy earnings to this bank. On the other hand, expenses have also increased. It might be noted, however, that over one-half of the expenses at the present time is due to cost of increased service to member banks, such as currency shipments, check collections, etc., rather than to direct operating costs. The schedule of income and expense does not include disbursements made for account of the Government in connection with the Fiscal Agency operations and the War Savings Organization, amounting to $447 thousands, for which the bank is reimbursed by the Treasury Department. Semi-annual dividends were paid June 30th, 1920 and December 31st, 1920 at the rate of 6 per cent, per annum on the stock holdings of member banks and, after carrying $7,351,799 to surplus account in accordance with the provisions of the Amendment to the Federal Re1 2 See Schedule No. I. See Chart F. 3 See Schedule No. 2. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 15 serve Act approved March 3, 1919, $2,473,499 was paid over to the United States Government as a franchise tax, which, under the provisions of that Act, "shall in the discretion of the Secretary be used to supplement gold reserve held against outstanding United States Notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury."' LOAN AND DISCOUNT OPERATIONS.2 The year 1920 opened with loans, discounts and investments at $289 millions which was approximately the highest peak they had ever reached, while, in order to maintain a reserve above the legal limit, the Federal Reserve Bank of Boston had rediscounted some $60 millions of that amount with other Federal Reserve Banks, i. e., bankers' acceptances sold with this bank's endorsement. Of these $289 millions, $124 millions were loans against U. S. War obligations, $63 millions loans and discounts against commercial paper, S78 millions bankers' acceptances, $22 millions U. S. Securities owned by the bank. The increase of the discount rates in January brought about a steady reduction in loans against U. S. War Obligations which was later accentuated by the raising of rates on loans against Certificates of Indebtedness, and still further accentuated by the general increase in rates of June 4th. Loans against U. S. War Obligations were reduced to some $52 millions by October and, while subsequently increasing, the year ended with $68 millions of the bank's loan on this type of paper. On the other hand, loans against commercial paper steadily increased from January well into March, embargoes and heavy snows interfering with transportation and delaying the movement of goods. While commercial loans were somewhat reduced later in the year, they increased again until in June they had reached some $70 millions. The raise in discount rates by the Bank in June had little effect in reducing its loan for several weeks, and then the loan declined at the same time as the usual mid-summer contraction, which was somewhat more marked than in 1919. The commercial loans remained fairly steady until early in November when, as in past years, with seasonable demands these loans began to increase, reaching a high point of $101 millions the last of December and closing the year at $87 millions. The holdings of bankers' acceptances purchased in the open market declined rapidly from the first of the year, by-March 19th being reduced to about $20 millions, and did not increase to over $35 millions at anytime during the balance of the year, a high point being reached on May 1 2 See Schedule No. 3. See Schedule No. 4. 3 See Chart G. 16 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 21st. During June and July the bank's holdings of bankers' acceptances steadily declined, being somewhat increased during September and October by purchases in the New York market. On January 1st, 1920, 68 per cent, of the total loans of this bank were to Boston Banks. This percentage increased to 80 per cent, in July, and reached a point of 85 per cent, in November. It should be noted, however, that the member banks in Boston have contributed from 52 to 57 per cent, of the total reserve deposits in this bank. DISCOUNT RATES. = The decided decrease shown in the Government's floating debt between July 1 and the end of the year 1919, the expectation that the offering of Treasury Certificates of Indebtedness during 1920 would be of diminishing volume, and the over-loaned condition of the Federal Reserve Bank of Boston were motives for increasing discount rates, the Directors of the Bank believing that the time had passed when the needs of the Government could be considered paramount to controlling the general credit expansion that had been under way since the summer of 1919 and was still on the upward swing. While discount rates had been raised somewhat in the preceding November and December, the increases had had practically no effect in checking the expansion which was fast approaching a dangerous point. Discount rates were raised four times during the year 1920. On January 3rd the rates on loans secured by Treasury Certificates of Indebtedness were increased to 4 ^ % , which was somewhat higher than the interest rate carried by many of the issues of the Certificates then outstanding. On January 23rd a general increase in discount rates was made, the increases ranging from 1/4% m t n e c a s e °f Commercial Paper (6%) to %% ° n loans secured by Liberty Loan Bonds (5^%). While the rates on loans secured by U. S. Certificates of Indebtedness were not raised at that time, they were increased February 27th to 5%. The rates established on January 23rd were effective in reducing loans secured by Government obligations, but were not effective in controlling loans for commercial purposes and these continued to expand, the bank rate of 6% being not only not equal to, but rather below the outside market rate. Loans were expanded in many cases far beyond the limits of safety which the amount of capital invested in industries warranted, especially with increasing cost of inventories. The matter of establishing a graduated discount rate based on member bank loans was discussed from time to time by the Directors of the Bank, but, as most of the pressure for loans was on the large Boston banks, a pressure emanating from manufacturers and dealers in raw material, it was feared that such a policy might 2 "See Schedule No. 32. See Schedule No. 40. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 17 bring about a too drastic curtailment and it was therefore abandoned. A second general increase in rates was therefore put into effect on June 4th, at which time rates on commercial paper were advanced to 7%, the special discount rates for bankers' acceptances withdrawn, and the rates for paper secured by Liberty Loan bonds and Treasury Certificates of Indebtedness increased to 6% and 5J^% respectively. At the same time the open market rates on bankers' acceptances were also raised. These increases of June 4th had the desired effect, and by August the loan of the Bank had been reduced to such a point that from then on until the end of the year this bank rediscounted heavily for other Federal Reserve Banks and was thus enabled to assist other sections of the country in financing the abnormal situations that had developed, as these sections had previously assisted New England earlier in the year. BANKERS' ACCEPTANCES.1 The general development of bankers' acceptances in this district during the past year has been very satisfactory. The character of the acceptances originating in this district as well as those purchased by the Reserve Bank, has conformed more closely to the policy and regulations laid down by the Federal Reserve Board than ever before, and at the same time the general market has broadened. The somewhat artificial support which the Reserve Bank has felt necessary to give to the market during the past year has been largely withdrawn. Brokers report increasing sales of acceptances to country banks, savings banks, insurance companies, and trustees, as well as to individuals and corporations, evidencing the fact that the desirability of acceptances as a short time prime investment is being more and more recognized. Brokers have been more active in distributing bankers' acceptances than ever before and the Reserve Bank has therefore been called upon to a greater extent to assist these brokers in carrying portfolios upon 15-day repurchase agreements. Early in the year this bank adopted the policy of sending out questionnaires to the acceptors of bills which it had purchased in order to check up the character of the underlying transactions. This questionnaire is not sent out on every bill purchased but at rather rare intervals, or when earmarks are noted about a bill which have raised some question regarding its character. Acceptors have co-operated most satisfactorily in responding to the questionnaires and it is believed that from the standpoint of the bank, brokers and acceptors, the results obtained have been beneficial. On January 23, 1920 when discount rates were generally increased by the bank a prefer•See Schedules Nos. 4, 34, 35, 36, 37, 38. 18 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. ential discount rate of 5 per cent, was established on bankers' acceptances. As the open market rate was 5% per cent, this policy resulted in acceptances being offered freely for rediscount by member banks and the open market almost ceased to exist, some S15 millions of acceptances being held by April 1 under rediscount. The policy of preferential rates was later abandoned and from then until the end of the year the outside market continued to broaden. In June and also in October and November bills were purchased direct from the Federal Reserve Bank of New York, some $31 millions in all being thus procured. The policy in buying bills has been changed from time to time, at certain periods unendorsed bills were purchased only when their maturity was not over 30 days and at a later date when such bills had only 20 days to run. In July and August a special rate was maintained of one-eighth less than the current rate on prime bills drawn outside of the country. The volume of acceptances has held up unusually well, especially when the price of commodities is considered. There was outstanding on November 15, 1920, some $88 millions of bills accepted by the banks and bankers in the district as compared with $105 millions on November 17, 1919. TRADE ACCEPTANCES. The development of the use of trade acceptances,—at least the domestic trade acceptances, unlike that of the bankers' acceptances, does not appear to have been entirely satisfactory. That they have been misused there is little question, and for the most part the banks in the district do not feel any more favorably disposed, if as much so, to encourage their use than in the past. There is evidence of their use on overdue accounts and for the purpose of extending longer and larger credits. On the other hand, the opinion is held to some extent that if the trade acceptances had been more frequently utilized it might have proved a safeguard against the evil of cancellations of orders and the return of goods which has been such a prevalent evil during the past year. The shoe trade generally, including manufacturers, wholesalers and jobbers have apparently taken more frequent advantage of this class of banking instrument than have business men in other lines, although certain wool houses and dealers in woolen goods have, at times, used them as have also cotton mills when buying cotton heavily. The volume of trade acceptances rediscounted with the Federal Reserve Bank of Boston was considerably less than in previous years, and none either domestic or foreign have been purchased under open market operations. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 19 UNITED STATES SECURITIES.1 The investment holdings of the bank in government securities, bonds, and short time obligations, show no material change from the previous year. The bank, however, has had a large volume of transactions in these securities during the year. Treasury Certificates of indebtedness have been purchased and resold without profit between banks, brokers, and the Treasury Department, the Reserve Bank simply acting as intermediary and this practice has been beneficial in bringing about a better distribution. In addition to these transactions, purchases were made for the account of the Federal Reserve Bank of Boston of maturing Treasury Tax Certificates from the Federal Reserve Bank of New York and from member banks several days before September 15 and December 15, thus relieving the strain on those banks on account of tax payments due on these dates. These purchases from the Federal Reserve Bank of New York amounted to $25 millions of September 15 maturities and $20 millions of December 15 maturities. As in past years pending receipts of funds from depositary banks, the Treasurer of the United States has borrowed from time to time large amounts of the Federal Reserve Bank of Boston through the sale of one day certificates of indebtedness, the aggregate amounting to about S471 millions, and at rates of 2 and 4 per cent., the largest amount held at any one time being S36 millions. RESERVE POSITION.1 During the year, the reserve position of the Federal Reserve Bank of Boston has shown a marked improvement both in percentage and actual gold holdings. While the actual reserve against combined note and deposit liability as published on Friday each week has varied from 40 per cent, to 60 per cent., the adjusted reserve, that is the reserve after eliminating the Inter-Federal Reserve Bank loans, shows fluctuations from 27 per cent, on January 1 to 60 per cent, on December 31 with a high point of 72 per cent, on October 22. As in previous years a marked decline in the reserve position appeared early in November due largely to maturing municipal obligations issued in anticipation of tax payments which had been purchased outside of the district. Except at the quarterly tax periods the transfer of funds by the Treasury Department has not as in previous years, materially affected the bank's reserve position. The actual gold holdings of this bank have increased steadily during the year ending with an increase as shown by the comparative statement of over $50 millions and with lawful money also showing an increase. This increase in gold has all come from other • See Schedule No. 4. ' See Schedule No. 6 and Charts A, B, C, D and E. 20 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Federal Reserve Banks, showing that the liquidation in securities and commodities has drawn money from other districts. In November, the tide turned and gold payments to other districts exceeded the receipts, due largely to the payment of municipal notes as referred to above. The gold held with foreign agencies has been reduced from $9,586 thousands to S241 thousands. When the sales of gold held by the Bank of England ceased, it was decided to transfer the balance to this country and shipments were, therefore, made during the fall until it had all been brought over. In connection with the payments on the AngloFrench loan, the French government arranged with the Federal Reserve Bank of New York to leave with the Bank of France a certain amount of earmarked gold deposited by the French Government which amount was apportioned among the other Federal Reserve Banks as had been done with gold held in England, the share of the Federal Reserve Bank of Boston being $241 thousands. DEPOSITS.1 Member banks' reserve accounts have fluctuated within a range of about $20 millions and have shown no marked tendency to increase as in previous years although the average has been higher than in 1919 or 1918. The deposits of new member state banks account for some of the increase and also the fact that the policy adopted of higher penalties for deficient reserves has influenced banks to keep their full required reserves although the general decline in deposits which the member banks have been experiencing during the year has required smaller reserve balances with the Reserve Bank. The daily clearings between the Federal Reserve banks through the gold settlement fund have eliminated the carrying over of collected balances of Federal Reserve Banks which in the past were settled each week. Although the deposits of the government have fluctuated widely during the year and at times have been overdrawn, necessitating numerous loans on one-day certificates of indebtedness, the deposits of foreign governments and foreign banks have declined from $5,277,000 during the year to $292,000. On January 1 the Argentine Government had some $5 millions on deposit which early in the year was withdrawn through shipment of gold to Argentine and through payment for its account in this country. On June 16 this bank was apportioned $292,000 of a deposit made by the Bank of Japan with the Federal Reserve Bank of New York and assumed an endorsement liability on acceptances sold to the Bank of Japan of $1,168,000. •See Schedules Nos. I, 6 and Chart E. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 21 CURRENCY.1 The demands for currency from member banks have been unusually heavy during the year 1920 and the expense and responsibility devolving on the Reserve Bank in its sorting, handling and shipment, have been heavy. While this service has been increasing in importance each year, it has been greater this year on account of the taking over of the functions of the Boston Sub-Treasury on October 23 and because of the responsibility attendant upon supplying the currency needs of the district. The movement of currency has been made the subject of careful study and it is felt that the Federal Reserve Notes which constitute the currency in which demands for circulation are met, are acting in the form of an elastic currency such as was contemplated by the Federal Reserve Act. While it is evident that the Inter-Federal Reserve Bank credit condition affecting Federal Reserve Notes in other districts and the abnormal international credit situation which has drawn federal reserve notes out of the country in place of gold, are artificial factors which have an influence upon currency movements, there appears to be evidence, so far as the Federal Reserve Note circulation of this district is concerned, that a proper control of the credit situation results in adequate control of note issues, note circulation showing a tendency to expand or contract somewhat with credit fluctuations or fluctuations in gold reserves against combined deposit and note liability. While this year the note issue increased steadily as in other years, as long as the reserves of the System showed no material improvement since early fall when that reserve began to improve, not only has a marked contraction appeared, but the increase in gold holdings of the bank has provided a much larger gold cover against outstanding notes. The decline in note issues began in September when a very marked recession appeared, which, however, was checked by the sudden demand for currency following the closing of several Boston non-member trust companies. Federal Reserve Notes in circulation on January 1, 1920 were S244 millions, the note issue reaching in September the high point of S311 millions, which by the end of the year had receded to $286 millions. Shipments of Federal Reserve Notes have been reported by member banks to Cuba and other Latin-American countries, especially during the early months of the year and there is evidence of pay-roll money having been sent by mill operatives to European countries, especially those of Central Europe. CHECK OR TRANSIT DEPARTMENT.1 With the exception of checks drawn on the Treasurer of the United States, the volume of checks handled by this bank during the year 1920 1 ! See Schedules Nos. 9, Io, I I, 12, 13, 14 and Chart F. See Schedule No. 15. 22 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. has largely increased both in volume and amount over previous years, the heaviest increase being in New England checks. The increase of par point banks throughout the United States has caused more checks to be collected through this bank. At the present time, checks on banks in 41 out of the 48 states can be handled through the Federal Reserve Banks at par; checks on 28,768 of the total 30,523 banks in the country are now remitted for at par to the Federal Reserve Banks, or over 93%, the remaining 7% of banks, non-par points, being situated in Alabama, Florida, Georgia, Louisiana, Mississippi, South Carolina and Tennessee. The decrease during the year of the number of items and amounts drawn on the Treasurer of the United States is due to the cessation of government activities in the World War, with its consequent decrease in government expenditures. While the number of member banks sending checks direct to the Federal Reserve Bank for collection has increased from 111 on December 1, 1916, to 126 on December 1, 1920, as there are 436 member banks in the district, it will be seen that a rather small percentage of the member banks are availing themselves of this service. A large majority of the banks still continue to send checks through their city correspondents, although most of those checks in turn are collected by those correspondents through the Federal Reserve Bank. COLLECTION DEPARTMENT.1 The Collection Department, handling time items, notes, drafts, and coupons, has also had a heavy increase in the number of items handled, necessitating in this Department an increase of 14 clerks, or a total of 24 for the Department during the year. The policy of giving immediate credit for maturing coupons and bankers' acceptances has materially increased the volume of such items handled. This Department does not collect coupons on government obligations, which are handled in the Fiscal Agency Department. Member banks sending time items for collection to this Department have increased from 82 on December 31, 1919, to 131 on December 31, 1920. RELATION TO BANKS AND THE PUBLIC. Satisfactory progress has been made during the past year towards developing a closer relationship with the officials of both member banks and non-member State banks, and with the public at large, and a better understanding of the service that the Federal Reserve Bank of Boston can furnish in assisting in the safeguarding and development of industrial, commercial and agricultural and financial activities of the New England District. •See Schedule No. 18. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 23 The officials of the Federal Reserve Bank have made calls from time to time upon member banks, explaining in detail matters -pertaining to operating service which this bank can offer its members, and this has led, as explained elsewhere in this report, to increased use of the bank's facilities for currency needs; collection of checks and time items, and of other services which the bank can furnish. During the year, in connection with the monthly review of conditions in this District, a department has been opened whose duties are confined exclusively to the analysis and investigation of industrial, commercial and agricultural statistics. This Department, although confining its work to industrial investigation, is working in the closest co-operation with the department investigating financial statistics. Through the work of this department and through conferences which the bank officials have had with representatives of the important industrial activities in the District, the bank has been able to keep in the closest touch with the needs and changes which the industrial situation existing during the past year has brought on the local credit situation. The Bank's officials have from time to time addressed banking and trade organizations on subjects pertaining to its operation. Three State banks have been admitted to membership in the Reserve System, and also four National banks that had been newly organized, while three National banks surrendered their charters to become State banks. Fiduciary powers have been granted to a number of national banks during the year, as well as privileges to accept dollar exchange. CREDIT DEPARTMENT AND BANK EXAMINATIONS. The unusual changes which the industrial situation has undergone during the year 1920 placed a heavy responsibility on the Credit Department of the bank, necessitating an enlargement of its force. The credit standing of commercial notes offered for rediscount has been followed very closely, all notes offered for rediscount having been approved by a Committee composed of the Assistant Cashier in charge of the Discount Department, the Chief Examiner and the Manager of the Credit Department, and doubtful credits in turn referred by this Committee to the senior officers for final adjudication.' The credit situation in general has been so sensitive and critical at times as to warrant the closest scrutiny of borrowings, and in many cases the most careful handling and tact to bring about proper results. The officers of the bank have had the fullest co-operation of the bankers in this district and when credit problems have arisen in other reserve districts, have advised with the officers of the Federal Reserve Banks in other Federal Reserve districts before passing judgment. The work of the Examining Department has been very heavy during the year 1 See Schedule No. 29. 24 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. and here again the bank has kept in closest touch with the chief National Bank examiner of the district and with the Bank Commissioners in the different states in the district. State banks seeking admission to the System have been examined by the examiners of the Federal Reserve Bank of Boston before application for admission has been filed and the policy has been adopted of making at least one examination during the year by the bank's own examiner, of state bank members. INTERNAL ORGANIZATION.1 The heavy increase in the volume of business which the bank has been called upon to handle during the past year has necessitated a further increase in its clerical force. On December 31, 1919, there were 629 employees in the bank. On December 31, 1920, these had been increased to 754, the increase being about equally divided between men and women clerks. While most departments show an increase in the operating force, those departments handling currency, checks and government securities show the largest increase. On October 1, 1920, William W. Paddock was elected Deputy Governor, Mr. Paddock having been connected with the Federal Reserve Board in charge of its examining division. On October 21, Krickel K. Carrick was elected Secretary of the Board of Directors in place of Arthur H. Weed who resigned, Mr. Weed continuing as the bank's counsel. An election of directors was held from November 16 to November 30, 1920, to fill the vacancies caused by the expiration of the terms of Thomas P. Beal, Class A director, and Philip R. Allen, Class B director, both representing banks in Group 1. Of the 46 banks entitled to vote in this group, 38 voted, all votes cast being in favor of the two retiring directors who were re-elected each for the term of three years, ending December 31, 1923. At the meeting held January 8, 1920, the directors appointed Philip Stockton, President of the Old Colony Trust Company, to represent this district as a member of the Federal Advisory Council. On December 31, 1920, the Federal Reserve Board reappointed Frederic H. Curtiss, Class C director for the term of 3 years, ending January 31, 1923, and re-designated him Chairman of the Board of Directors for the year 1921; Allen Hollis being re-designated Vice-Chairman for the same period. BANKING QUARTERS. Soon after the new year opened, the question of delaying the construction of the building to house the Reserve Bank's activities became a serious matter for discussion by the Directors of this Bank. The 1 See Schedule No. 46. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 25 leases on the buildings on the lot facing on Franklin, Pearl and Oliver Streets which had been purchased, all expired on March 31st, and the architects' plans had been completed and accepted. While the high cost of construction was a most serious consideration, the great handicap under which the bank's operations had been conducted and above all its inadequate vault facilities were deemed of paramount importance. It was, therefore, decided, with the approval of the Federal Reserve Board, to build at once and accordingly on March 1st, work was begun on tearing down and removing.the old buildings. Excavations were begun on March 29th and from then on construction operations have been pushed as rapidly as possible. Apart from some delay in the delivery of steel beams and limestone, the construction has progressed thus far as fast as was expected, the weather conditions during the early winter months being unusually favorable. As will be seen by the frontispiece of this report, the exterior has been already completed and the building roofed in, so that the work can proceed on the interior during the cold weather and the building kept heated. The general plan of the building follows the description given in the bank's report for 1919, the only material change being in the vault construction, to which much study has been given in order to insure the utmost protection for the specie and securities held by the bank. Unless some unforeseen occurrence arises, it is expected that the building will be ready for occupancy some time during the latter part of 1921. FEDERAL RESERVE SOCIETY. The Society, organized and managed by the employees of the bank, has had a most satisfactory year, and has received hearty support both from the officers of the bank and the employees. The Society has now 675 members. It has continued to publish the monthly magazine, the Federal Reserve Society News, which contains articles of general interest about the bank, and has organized and carried through a number of social entertainments during the year. Through the agency of the Society a splendid spirit of co-operation has developed among the clerks, and with it increased loyalty to the Federal Reserve Bank of Boston. Financial aid and advice have been given by the Society to members when necessary. During 1920 the Society distributed a large quantity of surplus Army goods, selling them to members at cost, while over a ton of maple sugar and syrup was sold during the year. At Thanksgiving and Christmas several thousand pounds of turkey were purchased and distributed at wholesale prices to members of the Society. Baskets of fruit and flowers have been sent to members confined at home by sickness. 26 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. FISCAL AGENCY DEPARTMENT. This Department, both in the volume and value of securities handled, has shown a heavy increase during the year, necessitating some twenty odd additional clerks. While the volume of collateral held against Government deposits in banks, deposits made in connection with subscriptions to Certificates of Indebtedness, has been considerably less, banks continued to leave their securities for safe-keeping. On the other hand, the exchanging of temporary for permanent Liberty Loan Bonds, and the handling of maturing coupons, has added greatly to the increase in the work. CERTIFICATES OF INDEBTEDNESS.1 The official operations of the government during 1920 have been confined to short-time loan certificates, or certificates issued in anticipation of income or excess profit taxes. These certificates issued, though less in volume than in 1919, both owing to the interest rates which they bore and largely to the general credit situation existing, did not find a ready market in this district during the first half of the year, and the quotas allotted to the bank were not filled. From August on, however, due to the improved credit situation brought about by industrial liquidation as well as the increased rates which new offerings of certificates bore, over-subscriptions were received on all subsequent issues. During the year issues of these Certificates of Indebtedness have been offered at frequent intervals at rates varying from 4%% to 6%, with maturities of from one and a half months to a year. The subscriptions, as in past years, were all made through the banks in the district, and to a large extent were paid by credits set up by those banks, these government deposits or credits being gradually withdrawn into the Federal Reserve Bank to meet government requirements. GOVERNMENT SAVINGS SECURITIES.2 The Savings Organization has become more akin to other Fiscal Agency operations in the bank during the year, and as the year ends, arrangements have been made to house this organization which has been reduced from 143 employees on December 31, 1919 to 19 on December 31, 1920, in the rooms formerly occupied by the Sub-Treasury, a large portion of which are now used by the Currency Department of the bank. •See Schedules N o s . 1 9 , 2 0 , 2 1 , 2 2 , 2 3 . = See Schedule N o . 2 3 . ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 27 The decrease in this organization has necessitated the elimination of all state offices and state organizations, and has centered the activities of this department in its headquarters in Boston. While there has been a great saving in the expense of handling the Savings Division by the reduction in the size of this organization, on the other hand, the volume of savings securities sold in the district has shown a marked decrease. On December 1, Mrs. F. L. Higginson, who had been government director of the Savings Division in New England since January, 1919, resigned, and Mr. Frank C. Ayres, who had been connected with this Division during the past year, was appointed in her place. The efforts of the Savings Division during the past year have been directed (1) To develop and protect the secondary market for all war issues of government securities, (2) To sell government savings securities, (3) To make permanent the habits of regular saving and investment in United States government securities. It has concentrated its efforts upon the organization of savings societies in industrial plants, educational work, and organization of school savings societies and women's organizations. CONCLUSION. The last twelve months have brought new problems to the Reserve Bank. While during the past few years, Government financing has played a most important part, during 1920, the industrial situation has been the controlling factor in the bank's operations, the Treasury borrowings becoming of less and less importance in the general credit situation; especially during the last half of the year Treasury Certificates were offered for subscription at such rates that made them attractive to the investor—thus keeping them out of commercial banks' portfolios. The proceeds of such subscriptions were left on deposit with subscribing banks for such short periods as to have but little influence in the credit situation. The apparent industrial prosperity which marked the early months of the year while probably artificial, brought new high price records for commodities in various lines of production, founded as it was to a large extent on a foreign trade, financed by bank credits which could not increase or continue indefinitely. These credits had reached such proportions, falling as they did on the banks in the large centers, that the limit of such credit expansion was reached and then domestic demands being insufficient to take care of production, prices generally began to fall. From early summer to the end of the year, this price deflation continued and, as the year ends, has been felt in all lines of industry in the district. The retailer and labor always last to 28 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. meet price reduction, have as yet shown but very slight changes in the reduction of prices and wages and, therefore, this readjustment in retail prices and of labor wages will probably continue well into the new year. Many commodities, however, are selling at below their cost of production. Numerous industries are left, however, with large inventories of raw material and manufactured goods and the liquidation in these inventories will necessarily be slow and therefore money rates, especially in the large centers, while easier, will probably continue fairly high throughout the year. The banks outside of Boston are fairly comfortable so far as money conditions go as they have been during the greater part of the year, and are borrowing but little from the Reserve Bank. The Boston banks, on the other hand, have been and are carrying the burdens of the extreme liquidation and therefore, continue to be fairly heavy borrowers at the Reserve Bank. It is a source of much satisfaction that this liquidation has come about in such an orderly manner. While business failures in the district have been thus far few, as the year progresses there will probably be more, but through the co-operation of the Reserve Bank with its member banks, no undue pressure is being brought to force extreme liquidation and this factor of time should do much to bring about the continued orderly liquidation of inventories. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 1. 29 Comparative balance sheet. [000 omitted.] Dec. 31, '20 Dec. 31, '19 Dec. 31, '18 Dec. 31, '17 RESOURCES. Earning assets: Bills discounted secured by United States war obligations Other bills discounted (commercial) Acceptances purchased in open niarket United States bonds United States short term obligations Total. Reserve cash: Gold (coin and certificates) . Gold settlement fund Gold with Foreign Agencies. Other lawful money Total. . Reserve against Federal Reserve Notes: Gold with Federal Reserve Agent . . . Gold redemption fund Total. Total cash reserves. Other resources: Due from Liberty Loan Subscriptions Uncollectcd Items Due from Governmentdepositaries Redemption fund Federal Reserve bank notes . Real Estate for bank quarters All other resources Total. Rediscounts for other Federal Reserve banks $78,225 95,143 20,678 544 21,519 $124,529 63,510 18,649 539 21,805 8120,515 13,060 15,084 538 7,416 $43,898 216,109 229,032 156,613 77,724 11,800 40,116 241 11,816 7,959 34,351 9,580 4,037 3,317 37,293 408 2,288 18,691 16,977 3,675 3,574 63,973 55,933 43,306 42.917 134,747 18,796 73,511 26,342 40,897 2,000 153,543 99,853 59,733 7,812 67,545 217,516 155,786 110,851 85,814 57,623 26,634 1,072 2,700 468 85,424 567 68,493 30,015 321 118 18,787 66,489 522,122 521,286 48,373 1.072 1.103 496 21,985 9,037 610 2,194 42,897 800 616 166 368,276 249,098 18,075 Dec. 31,'20 Dec.31,'19 Dec.31,'18 Dec. 31,'17 LIABILITIES. Capital fund: Capital paidin Surplus Deposits: Due to member banks, reserve account Due to Federal Reserve Banks, collected funds . Due to banks, uncolleetcd funds Due to Treasurer of the United States, general account Due to Treasurer of the United States, special account Other Deposits Other Liabilities: Federal Reserve notes in circulation Federal Reserve bank notes in circulation . . . . Unearned discount and interest Reserve for depreciation and interest Reserve for franchise tax and other taxes Mortgage on real estate Total. Liability for rediscounts with other Reserve banks $7,718 15,711 $7,107 8,359 $6,692 1,536 $5,858 75 114,670 117.294 21,725 45,469 101,806 17,467 29,970 82,842 3,870 13,778 41,762 4,561 1,123 10,499 2,419 26,634 835 48,373 5,843 30,015 411 66,490 23 288,780 20,353 1,057 160,726 6,382 468 93 1,461 750 73,199 41 244,093 20,912 807 93 88 522,122 521.2S6 368,276 249,098 60,121 48,962 44,477 469 "75 Federal Income and expense. SCHEDULE 2. Income. 1920. 1919. Expense. 1918. 1920. Paid in line of dividends on stock Bills discounted for member Acceptances purchased Interest on United States securiProfit on United States securities Penalties for deficient reserves... . Sundry profits $10,031,301 1,013,012 SO,O(W,2.r)2 1,077,001 $3,008,027 031,701 554 172 12,213 41,783 88,04!) 300,157 107,710 41,821 18,420 212,700 27,830 10,347 12,341,130 7,407,583 4,380,454 1918. l i $472,302 0,528 02.540 030,201) $207,000 7,351 45,028 518,895 $272 170,895 0,008 20,082 274,361 Cost of Federal Reserve notes . . . . Assessment for expenses of Federal Reserve Board 345,151 317,001 107,828 52,584 45,010 29,554 27,811 Tax on Federal Reserve Bank notes Difference account Repairs and alterations 82,000 780 288 1,334 374,580 28,102 10,272,504 89,422 1,499 14,040 18,777 310,040 47,027 5,777,381 4,558 61,895 3,554 101,520 200,000 3,304,908 12,341,130 7,497.582 4,380,455 Current expenses Directors' fees Kent Transit department Charged off or reserved Total 1 Included with dividends. 1910. Total Distribution of earnings. SCHEDULE 3. Items. 1920. Dividends paid member banks . . . Balance Total $447,200 i 0,825,208 10,272,564 1919. Items. 1918. $414,447' 5,302,034 $383,908 2,921,000 5,777,381 3,304,908 Available for distribution Total 1920. 1919. 1918. $10,272,504 $5,777,381 $3,304,908 10,272,504 5,777,381 3,304,908 'June 30 and December 31 dividends at the rate of 6% per annum, also includes interest paid on stock surrendered. Items. 1920. Reserve for franchise tax Carried to surplus Total : 1919. 32,473,499 7,351,709 $0,823,434 "• $1,535,600 9,825,298 0,823,434 1,535,000 Total surplus December 31, $15,710,000. 2 Includes $ 1,400,000 Reserve for Franchise Tax in 1918. Items. 1918. December 31 balance Total 1920. 1919. 1918. $9,825,298 $5,302,034 $2,921,000 9,825,298 5,362,934 2,921,000 Discount and Loan Transactions—1920. SCHEDULE 4. [000 omitted.] Discounted Paper. Month, 1920. Secured by Bankers' Ciovt. Win- AcceptObligaances. tions. Trade Acceptance's. Total Discounted and Purchased Paper. Purchased Paper. Commercial paper. Total. Bankers' Acceptances. Dollar Exchange. Total. Acquired from other Federal Reserve Hanks. 3 so 1920. 1919. 1918. 1917. 1 w January . . February . March . . . April May Juno July August . . September October . . November December $343,955 374,374 381,400 304,881 372,969 349,388 250,501 343,463 304,671 270,305 350,984 427,139 $1,554 9,874 7,312 1,032 1,757 490 1920 1919 1918 1917 4,074,030 2 4,486,749 1,550,311 25,095 22,129 4,986 530 1 2 io 2S 77 $583 256 1,704 288 383 415 146 193 170 155 174 195 $17,213 52,101 70,996 39,838 46,021 66,392 35,837 73,111 80,324 06,902 105,002 121,996 $363,305 436,005 461,412 340,039 421,130 416,685 280,484 416,777 385,188 337,302 450,160 549,407 $18,680 18,279 25,497 29,149 29,201 23,950 22,569 24 ,752 31,090 28,719 26,781 23,803 4,662 10,820 10,287 6,115 775,733 172,844 199,157 319,710 4,876,554 4,675,399 1,700,285 350,920 303,082 360,505 189,967 88,119 $50 100 5 ioo 300 350 419 31 1,3(12 525 2,102 3,409 $18,686 18,279 25,547 29,156 29,301 23,901 22,509 24,852 31,990 29,069 27,200 23,834 $3,579 07,000 57,500 43,000 01,503 115,119 159,708 170,042 180,007 90,899 51,009 304,444 1,000,500 305,207 • 194,157' 19,898 91,528 $385,570 454,884 553,959 432,695 93,431 502,149 424,172 601,360 587,810 547,042 574,259 624,250 6,181,581 $395,343 370,081 349,003 522,480 462,431 394,712 431,033 287,944 334,405 429,898 490,900 566,316 5,040,006 $32,521 72.551 41,320 39.433 69.542 03,935 160,685 147,379 249,020 338,396 372,350 387,202 1,974,340 84,237 9,195 10,257 11,194 21,520 54,761 45,834 33,929 42,644 17,426 72,374 119,077 D W W PI o 442,448 a Includes $4,117,000 in trade acceptances purchased in 1919 and $2,089,000 in 1918; also $4,423,000 acceptances repurchased from the Federal Reserve Bank of Kansas City. % O InelmloH $590,000 of papor Heeurrd by War Finance Corporation bonds. z 32 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 5. Average holdings, earnings and average rate of earnings, of total earning assets. [000 omitted. 1919. 1920. Month. May July December Average Holdings. Earnings. $214,310 228,024 220,300 217,101 220,068 214,877 213,620 218,339 239,220 232,565 227,823 225,039 $776 808 962 918 983 958 1,037 1,066 1,159 1,203 1,131 1,140 Rate. 4.30% 4.81 5.11 5.16 5.28 5.44 5.73 5.76 5.91 6.11 6.01 5.98 222,612 1,017 Earnings. S152.604 166,870 109,905 182,078 184,326 182,894 187,302 178,950 189,070 194,381 219,312 222,845 S515 506 ] 12,201 Average for year Average Holdings. 5.48 566 587 618 596 030 586 611 653 744 838 Rate. 3.97% 3.95 3.S2 3.92 3.95 3.98 3.96 3.92 3.93 3.96 4.13 4.30 7 460 185,878 622 4.01 Reserve position on the first of each month, 1920. SCHEDULE 6. [000 omitted.! Month. 1920. January February March April May June July August September October November December Federal Reserve ReTotal Net notes quired deposits. in actual combined reserve. liability. circulation. Total reserve. Adjusted Reserve rediscounts Excess Re- with other Reserve. serve. Federal Reserve banks eliminated. $116,846 $243,367 $360,213 $138,242 $157,502 S19.260 113,704 235,972 349,676 134,184 145,298 11,114 104,009 257,470 361,479 139,391 189,391 50,000 110,819 268,696 379,515 146,264 167,806 21,542 110,911 266,869 142,065 202,807 60,742 367,780 114,094 275,666 389,760 150,198 195,525 45,327 103,107 283,891 386,998 149,643 184,200 34,557 109,803 286,556 396,359 153,053 229,424 70,371 109,535 300,386 409,921 158,490 208,098 49,608 111,188 309,580 420,774 162,749 221,998 59,249 112,683 295,796 408,479 157,757 208,364 50,607 108,743 290,130 154,112 219,013 64,901 398,873 44% 42 52 44 50 48 58 51 53 51 55 27% 41 49 47 62 55 57 69 69 66 68 61 33 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. Transactions with other Federal Reserve Banks. SCHEDULE 7. [000 omitted.] Federal Reserve Banks. DisDisAccept- counts ances. Secured. counts Unsecured. Total. New York . . . $30,674 $40,000 $70,000 56,500 Philadelphia . 370,000 6,098 6,000 88,972 69,500 111,374 70,500 Richmond . . . Atlanta Minneapolis . Kansas City Dallas San Francisco Total . . . . SCHEDULE 8. Sold to other Federal Reserve Banks. Acquired from other Federal Reserve Banks. Acceptances. $140,674 56,500 44,999 8,000 10,540 4,500 370,000 18,998 6,000 133,971 77,500 121,914 75 000 150,939 1,000,557 'l2,906 Amounts by Months. Month. $583 January . .. $3,579 5,036 March \pril 5,087 May 5,090 July August . . . . 5,050 September . October.... 67,000 57,500 43,000 61,503 115,119 159,708 170,632 180,607 90,900 51,009 December. . 30,674 818,944 Acceptances sold. Bills acquired. 20,846 $20,263 1,000,557 20,263 Summary of monthly transactions in the gold settlement fund with other Federal Reserve Banks during 1920. [000 omitted.] DIHECT TRANSFERS. SETTLEMENTS. Gain for month. Month, 1920. Received. January February March April May June July August September October November December Total ! Paid. $6,402 20,310 25,031 42,465 34,084 51,274 76,073 107,501 110,470 136,808 130,948 57,580 $60,038 22,000 95,969 62,500 68,000 83,100 124,120 188,219 205,323 209,537 87,882 83,438 798,946 1,290,726 Gain. Net loss. Received. Paid. $54,236 1,690 70,938 20,035 33,916 31,826 48,047 80,718 94,853 72,729 43,066' 25,858 $627,507 490,861 670,012 625,408 594,082 641,751 643,505 593,551 645.042 649,881 512,045 501,318 8578,966 453,303 622,236 571,655 570,200 591,981 581,415 534,907 518,249 598,787 529,816 478,923 491,7S0 7,194,963 6,630,498 Net gain. $48,541 37,498 47,776 53,753 23,882 49,770 62,090 5.3,644 126,793 51,094 17,771 = 22,395 $5,695» 35,808 23,162> 33,718 10,034 2 17,944 14,043 22,074" 31,940 21,635 » 25,295 3,463 > 564,465 72,685 - Loss. 34 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 9. Currency transactions. [000 omitted.) Currency received. Currency paid out. Currency handled in sorting division. Month. D o l ars. February July December Total 1919. $54,612 $47,000 31,523 28,280 33,842 47,497 52,936 40,293 52,579 47,230 64,916 41,987 64,221 47,230 61,088 38,688 64 130 39,525 53,832 68,030 62,671 36,890 51,056 74,776 S38.496 50,323 50,773 44,812 55,069 63,583 60,149 73,509 74,090 55,688 55,530 66,602 505,853 688,624 698,979 SCHEDULE 10. 1919. 1920. 1920. Pieces. 1920. 1919. 1920. 1919. $17,173 26,440 26,579 27,674 17,761 31,536 37,408 3S.885 37,980 41,164 39,076 60,664 $67,963 36,534 62,129 60,709 61,683 73,650 84,354 72,489 79 487 82,039 80,220 84,707 $71,217 31,946 37,078 39,897 53,720 50,693 55,239 44,533 48,320 58,323 45,909 53,561 $12,112 6,991 10,382 10,967 11,621 12,700 13,430 12,297 12,375 13,435 12,310 13,392 $10,233 6,134 7,156 7,147 8,956 8,736 9,708 8,149 8,768 9,774 8,390 9,595 402,340 845,964 590,436 142,012 102,746 Federal Reserve bank notes aggregate as of December 31, 1920. Total received from comptroller Total notes retired and destroyed . . . . Notes outstanding Notes held by bank Net amount in circulation Ones. Twos. Fives. $34,563,500 20,418,802 14,144,698 269,500 $16,865,000 10,669,598 6.195,402 $2,171,500 1,888,600 282,900 $53,600,000 32,977,000 20,023,000 269,500 13,875,198 6,195,402 282,900 20,353,500 Total. United States special 2 % Certificates of Indebtedness pledged to secure circulation—$21,436,000. SCHEDULE 11. Month. January. . . February. . March.... April May June July August. . . . September. October. . . November. December. Total. iDecrease. Federal Reserve notes issued by Federal Reserve Agent, Outstanding on Issued during first of month. month. $254,717,970 245,964,535 264,992,625 276.552,370 275,058,725 282,474,375 203,212,765 295,667,595 307,725,945 323,929,345 312,336,545 307,276,445 Retired during month. Net increase. $8,160,000 27,820,000 21,600,000 11,100,000 18,200,000 24,600,000 15,300,000 23,300,000 28,300,000 6,000,000 17,400,000 23,900,000 $16,913,435 8,791,910 10,040,255 12,593,645 10,784,350 13,861,610 12,845,170 11,241,650 12,090,600 17,592,800 22,460,100 29,622,400 $8,753,4351 19,028,090 11,559,745 1,493,645 ' 7,415,650 10,738,390 2,454,830 12,058,350 16,203,400 ll,592,800> 5,060,100 i 5,722,400 i 225,680,000 178,843,925 46,830,075 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 12. 35 Federal Reserve notes issued and retired by denominations. Denominations. Fives Tens Fifties Hundreds Five hundreds One thousands Five thousands Ten thousands Totals Outstanding January 1, 1920. Outstanding December 31, 1920. Retired. Issued. $38,707,950 101,447,210 81,500,160 12,743,550 12,984,600 689,500 5,245,000 400,000 1,000,000 841,500,000 76,760,000 78,120,000 9,000,000 8,400,000 700,000 9,700,000 500,000 1,000,000 $37,891,295 72.662,640 16,071,440 6,001,050 5,007,000 421.500 0,234,000 515,000 1,040,000 $41,316,655 105,544,570 113,548,720 15,742,500 16,377,600 968,000 5,711,000 385,000 960,000 254,717,970 225,680,000 178,843,925 301,554,045 SCHEDULE 13.— Movement of Federal Reserve notes between districts, 1919 and 1920. [000 omitted.] Received from 1920. New York Atlanta St. Louis Total 1 Net excess received. 1920. 1919. 803 597 2,277 522 307 1,062 1,125 1,466 1,497 $59,738 6,873 4,427 4,392 2.471 6,369 1,220 1,378 1,621 509 1,295 9S.292 62,719 89,583 90,293 S72.012 6,208 2,777 3,741 2 313 5,581 1,478 505 Dallas 1919. Sent to 845,236 4,247 2,325 2,238 1 608 3,681 1,073 420 S59.550 7,049 3,996 3,474 2,944 6,009 1,066 807 Net excess returned 1920. 1919. $12,462' 841 1,219 267' 631 1,028 412' 322 869 780 1 1,099 202 8,709 • 27,574 302 $14,502 2,626 2,102 2,154 863 2,688 147 958 233 Available supply of Federal Reserve notes on December SI, 1920. SCHEDULE 14. Held by Fives. Tens, Twenties Federal Reserve AKent * 10,500,000 527,000,000 $41,080,000 Comptroller of the Currency 7,020,000 17,700,000 13,810,000 Total printed Being printed Fifties. Hundreds. Five Hundreds. Thousands. Five. Thousands. 88,400,000 $9,200,000 SI ,700,000 $7,100,000 $3,000,OOQ $7,000,000 $122,180,000 15,000,000 1,200,000 0,000,000 23,000,000 10,000,000 12,000,000 107,020,000 7,700,000 30,700,000 13,000,000 19,000,000 229,800,000 24,120,000 44,700,000 55,520,000 24,000,000 10,400,000 9,080,000 12,240,000 10,500,000 2,800,000 8,800,000 Ten Thousands. 400,000 Total. 49,880,000 Amount of cliecks handled by the Transit Department. SCHEDULE 15. [000 omitted.] On banks in Boston Clearing House. Other banks in this district. On Treasurer of United States. On banks in other districts. Total. Month. January February March April May June July August September October November December Total 1920. 1919. 1920. 1919. 1920. 1919. $751,708 505,948 00(1,454 702,255 090,999 732,338 712,995 030,019 050,886 674,509 (125,602 650,774 $587,933 440,381 534,204 532,010 570,704 045,121 008,824 509,979 (138,796 608,482 649,347 789,564 $433,119 329,730 445,180 457,778 400,120 50(1,979 483,750 435,099 463,545 460,960 442,702 442,873 $2S0,910 230,870 309,490 288,114 309,498 352,631 350,004 333,415 3!) 1,035 408,427 390,445 458,240 $28,018 19,201 29,747 39,708 40.014 27,703 20,149 22,548 10,079 43,058 17,778 34,195 $112,282 09,931 01.S32 54,427 35,480 32,887 47,180 164,889 35,985 20,635 24,819 63,692 $83,160 80,024 95,507 88,207 85,825 92,541 81,073 75,724 82,685 73,314 61,102 64,400 8,055,207 7,295,405 5,302,447 4,100,154 345,998 724,045 963,694 1920. 1919. 1920. 1919. $77,578 58,755 77,140 82,109 75,292 81,090 75,507 71,930 82,198 81,557 77,355 85,688 S 1,290,071 994,909 ,236,948 ,287,948 1,283,558 ,359,561 ,297,973 ,164,590 ,213,795 ,252,441 1,147,304 ,192,248 $ 1.004,703 926,199 14,727,340 13,054,803 799,943 982,732 950,060 990,980 1,111,732 ,141,575 1.110,213 ,148,014 ,170,101 ,141,906 ,397,184 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 16. 37 Custody department — Volume of securities handled. [000 omitted.] Withdrawn Pledged Balance at close of Held for War loan account Discount department Safe-keeping Exchange account Total 1920. 1919. 1020. 1919. 1920. $193,643 1,037,607 802,038 27,011 $619,352 1,624,010 999,461 $237,264 1,094,876 757,905 14,778 '$697,722 1,037,382 976,319 $46,2,51 77,182 70,214 12,408 $132,985 190,048 69,045 2,060,299 3,242,823 2,104,883 3,311,423 206,055 392,078 1919. SCHEDULE 17. — Custody department — Character oj securities held December, 1920. Collateral for War loan account. Exchange account. Discounted notes. Safe-keeping for banks only. United States certificates of indebtedness . . Industrial and transportation bonds Bonds of foreign governments United States Government bonds $8,948,000 3,664,000 1,572,000 5,183,000 28,057,000 $1,315,000 $20,517,000 $7,429,000 693,000 10,215,000 63,407,000 9,219,000 18,795,000 245,000 47,424,000 11,530,000 93,143,000 27,162,000 Total SCHEDULE 18. Number of time items received for collection and amounts collected. [000 omitted.] ITEMS RECEIVED FROM: Month. January February March April May June July August September.... October November.... December . . . . Total Coupons Total Received. Collection Items. Grand Total. Amount Collected. Federal Reserve Banks. Member Banks. Discount $2,064 1,342 2,037 1,655 2,165 3,142 3.4S0 3,456 2,276 2,373 2,167 2,672 $2,092 2,473 1,933 3,100 3,012 3,070 2,992 3,436 3,287 5,050 5,043 6,431 $2,248 1,905 2,400 2,260 2,422 2,610 3,407 2,632 2,434 2,923 3,294 3,351 $6,404 5,720 6,370 7,015 7,599 8,822 9,879 9,524 7,997 10,346 10,504 12,454 $3,090 1,431 1,381 1,669 1,467 1,890 2,428 1,718 2,095 3,025 2,947 9,000 $9,500 7,151 7,757 8,684 9,066 10,712 12,307 11,242 10,092 13,371 13,451 21,454 $74,794 91,386 88,691 70,550 69,635 75,397 87,915 83,099 65,819 84,693 84,800 72,281 2S.829 41,919 31,892 102,640 32,147 134,787 949,060 Dept. Certificates of indebtedness sales and payments. SCHEDULE 19. Due. Dated. Rate per cent. Allotment to sell. Number of days before final withdrawal of deposits. Paid by other issues certificates. Total issued. Paid by credit. $11,253,300 7,4(iS,(X)0 17, SOS, 500 S,fil>0,000 $11,253,500 6,015,500 15,490,500 S,71S,000 $10,734,000 fi,502,000 13,527,500 8,333,000 44,890,000 42,083,500 30,096,500 $64,950,000 25.980,000 $52,782,500 17,695,500 $45,331,500 14,876,000 90,930,000 70,478,000 60,207,500 $13,900,000 12,100,000 12,990,000 17,320,000 $12,470,000 8.852,000 14,042,000 18,851,000 $11,288,000 8,576,500 13,536,000 17,758,000 5«,310,000 54,215,000 51,15X,500 33,400,000 $10,202,000 18,475,000 3,7X0,500 5,421.000 21,:i2'.!,500 10,059,000 10,455,(KX) 35,035,000 $9,196,000 16,010,000 3.23X.500 4,725,000 19,111,000 9,711,500 9,528,500 33,2»3,000 129,800,000 114,706,000 105,413,500 3,056,000 451,730,000 281,542,500 255,876,000 12,013,000 920 LOAN CERTIFICATES 1920. July 1 July 15 October 15 November 15 1920. April 1 April 15 April 15 May 17 i\ 5 5i 5? Total 22 47 47 32 • 1920 TAX CERTIFICATES. January 2 February 2 1U20. December 15 March 15 1920. 4} 4i Totnl 43 50 $6,118,500 2,216,000 8,334,500 1921 LOAN CERTIFICATED June 15 July 15 1920. January 3 1921. May 16 November 15 5} 5! 0 si Total 30 47 43 31 $523,000 99,500 622,500 1921 TAX CERTIFICATES. 1920. March 15 July 15 March 15 1921. September 15 October 15 March 15 March 15 September 15 March 15 December 15 December 15 . Total Grand Total . 4J 6 5? 5} 6 5» 5? 6 $17,300,000 20,700,000 5.200,000 7,1)40,000 27,000,000 8,or>o,ooo 9,900,000 22 30 47 41 41 32 34 34 $89,000 1 074 500 25 000 260,500 182 000 984,000 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON*. SCHEDULE 20. State. 39 Subscriptions to certificates of indebtedness classified by states. 1921 Loan. 1920 Loan. Maine New Hampshire Vermont Massachusetts . . Rhode Island . . . Connecticut.... Total 1921 Tax. 1920 Tax. Total. $548,500 030,500 904,500 30,125,000 3,599,000 6,276,000 $1,069,500 1,086,500 89,500 37,351,000 7,871,500 6,747,000 $1,054,000 1,015,500 481,000 53.320,000 4,006,500 10,601,000 $1,767,500 2,5«0,500 450,000 81,258,500 11,030,000 17,699,500 $4,439,500 5,293,000 1,925,000 202,054,500 26.307,000 41,323,500 42,083,500 54,215,000 70,478,000 114,766,000 281,542,500 United States certificates of indebtedness redeemed from January 1, 1920, to December 31, 1920. SCHEDULE 21. [000 omitted.] Dated. August August September December April April April May 1920 1, 1919 15 1919 2, 1919 1 1919 1 1920 15, 1920 15, 1920 17, 1920 Cash Due. Series: January February February July Julv October Xnvemhpr Applied for tax payments. Exchanged for new issues. $103 $103 2, 1920 2, 1920 16 1920 1 1920 15 1920 15 1920 15. 1920 Tax Series 1920: July 15, 1919 March 15, 1920 September 15, 1919 March 15, 1920 September 15, 1919 September 15, 1920 December 1, 1919 March IS, 1920 December 15, 1919 June 15, 1920 February 2, 1920 March 15, 1920 January 2, 1920 December 15, 1920 Advance payment unmatured issues. . . Total $1,256 25,316 34 434 34,190 8 239 9 5S8 5 852 13 073 6,525 870 4,736 716 676 513 378 164 11,392 2.286 52,327 4,834 42,783 15,629 60,948 2,308 1,154 1,606 327,679 7,103 160 Total. $489 546 722 278 26,572 35,304 38,926 8,955 10,264 6,365 13.451 6,689 15 773 25 15 408 43 994 431 11,896 3,605 53,074 S.127 45,499 16,826 63,548 12,013 346,795 591 SCHEDULE 22. — Items of interest from theschediiles of thigand other reports in connection with the fiscal operation of the United States in this District — 1920. RECEIPTS. Proceeds of sales of United States certificates of indebtedness Federal taxes collected Salvage of war materials Transfers from other Federal Reserve banks $280,000,000 470,000,000 45,000,000 32,000,000 DISBURSEMENTS. Expenditures disbursed by check Transfers to other Federal Reserve districts Certificates of indebtedness redeemed 290,000,000 225,000,000 346,000,000 s Sales of Treasury savings stamps and cerlificales. SCHEDULE 23. [000 omitted.] State. Population. Stainn 777,000 New Hampshire. . •111,000 Vermont 304,000 Massachusetts.. . . 3,775,000 Rhode Island 025,000 Connecticut! 942,000 January. . February. March. April. May. June. July August. SepNoDetomber. October. vember. cember. Total. Sales Per Capita. $15 00 19 275 97 64 S20 38 10 155 04 36 $10 49 14 183 07 50 $7 31 !) 152 50 35 $0 21 7 110 49 34 $0 24 5 115 54 30 $11 20 0 82 33 25 $11 Hi 0 09 31 19 $12 IS 3 83 30 12 $7 20 0 94 35 14 $13 13 0 76 27 13 $17 27 12 95 27 18 $174 337 103 1,489 570 350 $0.22 .70 .28 .38 .92 .37 5G0 323 382 290 227 234 177 152 164 176 148 196 3,029 .44 1 t/l w Total 6,927,000 > Fairfield County taken over by Second Federal Reserve District. 3 td 8 55 3 Lihcriy loan conversions. SCHEDULE 24. Exchanged into Bonds. 1st Loan interest certificates Allotment Other Federal Reserve banks Total Firet3J's First 4's Second 4's Victory 4 3's Victory 3j's 1 Exchanged by other Federal Reserve Banks. Issued. 41's 2d 4}'s Outstanding. 1 4J's 3J's 4'B $265,017,000 2,614,700 $168,163,700 163,828,100 $35,582,1X10 $58,800 267,632,600 168,163,700 63,828,100 35,582,000 58,800 168,163,700 73,218,250 408,530,000 317,644.500 54,265,650 9,390,150 $880,550 65,704,400 363,808,850 3J's $304,550 $10,238,100 $4,529,550 157,588,4501 7,513,8501 44,661,150! 307,406,4001 40,736,100< I w W 05 M W M w Difference between amount issued by this bank and amount presented for conversion. o 3 42 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 25. Coupons of United States obligations redeemed, 1920. Description. First Liberty loan 3 i % First Liberty loan conv. 4% First Liberty loan conv. 4J% First Liberty loan 2nd conv. Second Liberty loan 4% Second Liberty loan 4J% Third Liberty'loan 4 } % Fourth Liberty loan 4J% Victory Liberty loan 35% Victory Liberty loan 4?% Certificates of indebtedness War finance Other United States coupons Totals Number. Amount. $538,702 217,525 341,100 2,081 402,193 924,915 1,658,721 2,647,037 37,547 1,306,904 43,581 10,011 9,708 $3,150,092.65 397,010.85 1,472,802.69 6,180.21 1,044,328.00 8,826,710.06 8,515,088.79 18,494,715.13 1,309,910.58 8,836,456.49 4,967,482.69 265,275.00 61.503.47 8,140,625 57,407,616.01 | ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 26. 43 Change in membership of national banks. Date of change. City. Name of Bank. Warren, Massachusetts.. Richford, Vermont Boston, Massachusetts. . Arlington, Massachusetts First National Bank Richford National Bank.. Haymarket National Bank Arlington National Bank Reason. ORGANIZED. March 6, 1920 March 22, 1920. . . August 9, 1920. . . . December 7, 1D20. New Bank Do. Do. Do. LIQUIDATED. Clinton, Massachusetts.. First National Bank Northampton, March 1, 1920 Massa- Hampshire County Na- Harwich, Massachusetts Cape Cod National Bank SCHEDULE 27. City. Bangor, Maine Portland, Maine Sanford, Maine Arlington, Massachusetts Boston, Massachusetts Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Cambridge, Massachusetts Do. Fitchburg, Massachusetts Gloucester, Massachusetts Greenfield, Massachusetts Holyoke, Massachusetts Lawrence, Massachusetts Lynn, Massachusetts New Bedford, Massachusetts . . . Newton, Massachusetts Norwood, Massachusetts Salem, Massachusetts Waltham, Massachusetts Winchester, Massachusetts Worcester, Massachusetts Providence, Rhode Island Do. Do. New Britain, Connecticut New Haven, Connecticut South Manchester, Connecticut Waterbury, (Jonnecticut Converted into Trust Company. April 20, 1920 .. August 1, 1920 Do. Do. List of member trust companies. Name of Bank. Merrill Trust Company (branches at Dexter and Jonesport) Fidelity Trust Company Sanford Trust Company Menotomy Trust Company American Trust Company Beacon Trust Company Commonwealth Trust Company Exchange Trust Company International Trust Company Liberty Trust Company. Market Trust Company Massachusetts Trust Company Metropolitan Trust Company New England Trust Company Old Colony Trust Company State Street Trust Company U nited States Trust Company Charles River Trust Company Fitchburg Bank & Trust Company Gloucester Safe Deposit & Trust Company Franklin County Trust Company Hadley Falls Trust Company Merchants Trust Company Security Trust Company New Bedford Safe Deposit & Trust Company Newton Trust Company Norwood Trust Company Naumkeag Trust Company Waltham Trust Company Winchester Trust Company Worcester Bank & Trust Company Industrial Trust Company (branches at Bristol, Newport, Pascoag, Pawtucket, Warren, Woonsocket, Westerly, Wickford) Rhode Island Hospital Trust Company.. . Union Trust Company (branches at East Greenwich, Olneyville) New Britain Trust Company Union & New Haven Trust Company . . . Manchester Trust Company Colonial Trust Company Date admitted. March 14, 1918 March 18, 1918 September 9, 1920 November 8, 1918 August 31, 1917 January 15, 1918 February 12, 1917 September 14, 1920 June 9, 1917 May 1, 1919 1918 I January 13, December 10, 1920 December 4, 1917 : December 10, 1918 , August 24, 1915 January 20, 1918 April 9, 1918 December 11, 1917 March 6, 1918 July 26, 1917 June 4, 1919 April 21, 1919 January 19, 1918 February 27, 1918 September 25, 1918 June 5, 1919 November 5, 1917 August 11, 1917 September 25, 1918 April 3, 1919 May 29, 1917 December 26, 1917 November 9 1917 March 13, 1918 September 13, 1918 August 21, 1918 December 8, 1917 December 30, 1918 April 6, 1918 44 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 28. Member and non-member eligible Stale banks compared. [000 omitted.] Member State banks. State. Maine New Hampshire Vermont Massachusetts.. . Rhode Island. . . Connecticut Total SCHEDULE 29. Number. Non-member eligible State banks. Re- Number. $825 $25,685 24,750 7,000 1,550 26,396 8,500 1,225 600,240 172,007 16,763 41 8 27 68 8 24 34,200 36,946 814,695 176 Capital. Surplus. 3 $900 29 3 4 39 sources. Resources. $3,355 555 1.601 18,285 1,750 4,855 $2,308 683 1,501 14,055 2,061 3,650 $81,093 14,368 46,467 270,668 37.760 79,872 30,401 24,858 530,228 Classification according to nature of business of unsecured loans of $100,000' and over as of December 23, 1920. Business. Tanners and Leather Dealers Manufacturers of Tires and Rubb'. Goods Manufacturers of Autos, Trucks and Accessories Packers and wholesale meat dealers Manufacturers, wholesale and retail shoe dealers Manufacturers cotton goods, yarns, etc Manufacturers of machinery and tools Wool, worsted, yarns, etc. Manufacturers of druggists' supplies and chemicals . . Manufacturers of electrical supplies Manufacturers of fertilizers Manufacturers of explosives and firearms Department, dry goods stores and mail-order houses . Stationery and office supplies Silk, furs and clothing Grocers and eanners Lumber, contractors' and builders' supplies Hardware Iron, steel and metals Manufacturers of confectionery and cocoa Tobacco Farm products Manufacturers of pulp and paper Manufacturers of musical instruments Total. . 1 Surplus. Capital. Amount. $7,270,000 0,650,000 5,881,000 5,570,000 5,005,000 4,715,000 4,680,000 4,265,000 3,970,000 3,825,000 2,875,000 2,750,000 2,475,000 1,915,000 1,810,000 1,715,000 1,690,000 1,635,000 1,300,000 1,049,000 1,000,000 820,000 500,000 400,000 73,765,000 Per Cent. 9.8° 9.0 7.9 7.6 6.8 6.4 6.3 5.7 5.4 5.2 3.9 3.7 3.4 2.5 2.5 2.4 2.3 2.2 1.7 1.5 1.3 1.2 .7 100.0 226 makers borrowing $100,000 and over make up $73,765,000 or 79% of the total unsecured loans amounting to $93,329,000 at close of business December 23,1920. Amounts due to and loans to member banks by States, December 31, 19SS0 and 1919. SCHEDULE 30. [000 omitted.] Loans to Member Bunks. Reserve Accounts. State. Secured. 1919. 1920. Maine New Hampshire.. . Vermont Massachusetts Rhode Island Connecticut Total Ratio of Rediscounts to Reserve Accounts. Total. 1020. Unsecured. 1919. 1920. 1919. 1920. 1919. 1920. 1919. $5,423 2,934 2,104 85,217 9,009 9,263 $4,872 2.91S 1,885 90,321 S,011 9,285 $1,090 1,942 701 57,230 407 6,249 $3,132 3,440 1,600 84,024 7,730 0,944 $024 608 533 83,409 923 912 $1,828 410 015 76,207 435 1,002 $2,320 2,550 1,294 140,639 1,330 7,161 84,900 3,802 2,215 100,891 8,165 7,946 42.7 80.9 59.7 165.0 13.7 77.3 101.8 132.3 117.5 178.1 101.9 85.5 114,070 117,292 68,285 107,476 87,009 80,563 155,294 188,039 135.4 160.3 Reserves of national banks in New England as reported by the Comptroller of the Currency. SCHEDULE 31. [000 omitted.] 1920. January 1 February 2 8 . . . . May 4 June 30 September 8 . . . . November 1 5 . . . Required reserve. $69,254 70,912 72,271 73,184 73,445 74,554 i Deficit. Reserve carried. $73,131 74,044 77,829 70,528 75,378 77,851 Excess reserve. $3,S77 3,732 5,558 3,344 1,933 3,297 1919. January 1 . . . . March 4 May 12 June 30 September 12. November 17. Required reserve. $04,129 60,905 65,907 63,810 69,095 69,765 Reserve carried. $67,162 04,269 66,219 60,421 70,096 75,454 Excess reserve. $3,033 3,304 252 2,611 1,601 5,689 1918. January 1 March 4 May 10 June 29 August 31 November 1 . . . . Required reserve. $55,557 55,806 56,021 56,392 59,041 63,472 Reserve carried. $59,948 57,001 61,274 54,900 59,032 63,115 Excess reserve. $4,391 1,135 5,253 1,492' a> 357 i 46 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 32. Comparison of loans and deposits of Boston and country banks. [000 omitted.] Loans to Member Banks. 1 Reserve Deposits of Member Banks. % of Boston to total. 1920. January 2 9 16 23 30 February 6 13 20 27 March 5 12 19 26 April 2 9 16 23 30 May June 7 14 21 28 4 11 18 25 July 2 9 16... . 23 August 30 6 13 20 27 September 3 10 17. 24 October 1 8 15 22 29 November 5 12 19 26 December 3.. 10 17. 24 31 1 In Boston.* All Others. In Boston. All Others. $126,250 104,122 104,004 99,196 114,735 122,507 142,989 136,787 139,131 131,241 125,574 122,240 135,049 137,487 111,186 108,420 109,661 102,925 100,455 114,617 115,892 113,322 115,785 105,875 106,245 100,306 111,672 99,518 90,494 83,496 77.356 76,276 78,512 03,946 93,116 84,622 88,169 82,346 96,197 104,033 103,704 85,541 78,706 84,467 92,959 97,782 106,131 113,412 116,907 115,736 112,621 132,086 122,009 $58,406 55,638 52,505 49,624 46,283 46,376 45,542 41,211 41,293 37,098 37,240 36,008 40,403 37,792 35,394 31,920 30,865 31,925 29,621 34,833 32,418 36,142 34,128 37,105 33,089 33,781 27,165 25,744 27,869 20,379 23,856 25,332 26,370 26,455 25,519 28,721 26,729 25,373 26,479 27,535 26,172 36,546 22,444 25,452 26,372 22,961 19,178 31,099 29,641 31,696 30,594 31,019 53,962 J68.976 71,487 72,215 62,970 64,065 61,060 64,590 63,131 68,858 65,106 63,335 62,202 62,791 63,572 63,793 65,537 70,032 62,097 59,838 65,357 84,471 66,424 68,669 65,362 61,234 65,808 66,001 67,253 66,580 68,631 67,244 64,140 66,615 64,446 64,862 64,082 63,811 65,339 65,090 66,872 64,619 71,433 66,600 66,772 65,260 65,159 63,918 61,666 61,940 64,087 64,013 61,430 60,719 $52,188 54,782 52,789 51,184 49,656 48,593 54,377 52,222 52,390 51,778 51,442 52,057 51,426 51,640 51,894 53,346 49,190 51,828 50,178 55,825 51,732 53,386 51,517 52,103 54,368 52,139 51,498 50,932 54,561 53,401 51,693 53,586 54,493 52,508 53,914 52,798 56,076 55,261 53,924 52,328 51,767 59,442 55,282 55,697 55,043 55,455 51,525 51,936 52,052 55,241 53,107 51,704 53,951 Does not include liability on acceptances. Loans. 68.3% 65.1 06.4 66.6 71.2 72.5 75.8 76.8 77.1 77.9 77.1 77.2 76.9 78.4 75.8 77.2 78.0 70.3 77.2 76.6 78.1 75.8 77.2 74.0 76.0 74.8 80.4 79.4 76.4 80.3 76.4 75.0 74.8 78.0 78.4 74.6 76.7 76.4 78.4 79.0 79.8 70.0 77.8 76.8 77.9 80.9 84.6 78.4 79.7 78.5 78.6 81.2 69.3 Deposit. 56.9% 52.8 57.7 55.1 56.3 55.6 54.2 54.7 56.7 55.7 55.1 54.4 54.9 55.1 55.1 55.1 58.7 54.5 54.3 53.9 56.8 55.4 57.1 55.6 52.9 55.7 56.1 56.9 54.9 56.2 56.5 54.4 55.0 55.1 54.6 54.8 53.2 54.1 54.6 56.1 54.5 54.5 54.6 54.5 54.2 54.0 55.3 54.2 54.3 55.5 54.6 54.2 52.9 Comparison of items reported by member hanks in selected cities on the first Friday of each month, 1020. SCHEDULE 33. [000 omitted.] Member Banks in Springfield, Providence, New Haven, Hartford. United States securities owned. 1020. January.. February. March. . . April May June July August. . . September October. . November December $41,900 38,105 35,390 33,399 35.3B9 35,690 34,550 33,893 37,505 37,6(15 37,808 37,615 Loans Loans Borrowed Ratio of All other Total secured from Fed- borrowings Net secured to total loans and loans eral demand by United by other loans and deposits. invest- and invest- Reserve storks and States investments. ments. obligations. bonds. bank. ments. $21,SOS 17,343 14,438 13.S12 10,5,i4 9,758 9,295 8,702 8,285 8,427 7,828 7,774 $44,532 46,205 47,199 47,391 47,063 45,682 45,215 45,152 43,858 45,503 47,611 44,49(1 S208.660 211,218 209,874 211,450 220,282 220,469 218,048 221,177 225,279 210,303 224.337 222,355 $316,996 313,021 306,901 306,052 313.86S 311,608 307,108 308,924 314,927 310,898 317,584 312,240 I January. . February. March. . . April May June. July August. . . September October. . November December. $15,201 12,882 9,731 8,203 7.651 7,018 4,900 4,955 7,21,5 6,052 4,948 7,810 4.7% 4.1 3.1 2.0 2.4 2.4 1.5 1.6 2.2 1.9 1.5 2.5 Total deposits. Reserve with Federal Reserve bank. 2,1 It 385 1,188 2,207 1,428 2,133 1,106 3,208 4,104 1,495 276 $200,742 279,783 270,167 280,119 287,935 283,543 287,851 287,256 288,289 296,095 295,244 283,171 $16,158 14,941 15,918 15,219 10,141 16,313 15,898 16,705 16,479 16,200 17,006 16,458 $31,101 9,985 1,716 5,582 9,202 1.974 5,801 3,141 3,071 11,034 2,778 1,065 $703,843 655.4S8 654,944 038,284 077,800 080,020 080,807 681,800 671,514 687,074 077,421 036,721 $68,970 61,061 65,106 03,572 59,838 68,609 00,001 64,140 64,082 65,997 64,290 60,774 Time deposits. Government deposits. $193,468 186,946 183,507 185,327 190,799 187,597 190,310 188,297 187,038 193,836 190,741 181,201 $87,726 90,723 92,275 93,604 94,869 94,518 95,408 97,853 98,043 98,755 103,008 101,094 $9,548 $631,310 602,631 608,803 593,349 024,426 035,551 031,255 030,181 622,180 626,128 623,032 586,499 $41,432 42,872 44,425 39,353 44,178 43.095 43.811 42,508 46,263 49,912 51,011 49,157 Member Banks in Boston.1 $38,7«7 30,305 27,287 20,311 36,829 35,789 21,949 19,428 18,563 17,077 15,497 15,332 $76,123 70,683 04,281 59.598 49,729 48,057 46,220 42,891 39,280 39,790 39,002 39,184 $163,798 155,6111 149,787 147,227 149,293 145,098 140,834 138,511 138,993 147,850 149,029 147,709 $516,982 521,151 539,479 542,758 544,664 566,406 573,597 570.450 507.953 587.702 575.963 503,580 $705,070 777,800 780,834 769,804 780,515 795,350 788,606 771,280 764,789 792,419 779,491 705.S05 'Does not include figures for state banks admitted to membership during 1920. $120,250 122,507 131,241 137,487 100,455 115,785 111,672 70,276 84,022 103.283 92.059 116,507 15.1% 15.7 16.8 17.8 12.8 14.5 14.1 9.8 11.0 13.0 11.8 15.2 48 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 34. Acceptance liability of national banks in District No. 1. [000 omitted.] 1919. 1920. February 28 $68,948 May 4 66,861 June so 59,809 September s 48,738 November 15 53,479 December 29 54,490 SCHEDULE 35. March May June September November December 4 $44,427 12 47.05S XI) 53,933 12 62,782 IV 62,276 31 71,006 1918. 1917. 4 $51,417 March 10 49,704 May 2!> 48,651 June 31 45,298 August November 1 52,486 December 31 47,316 March May June September November December S $29,406 1 32,374 2(1 45.590 11 34,714 20 41,290 31 49,131 Acceptance liability of all banks in District No. 1. Accepted by:— Non-member banks (Massachusetts) Acceptance Corporations and Private Bankers Total Nov. 15, 1920. Nov. 17, 1919. $53,479,000 22,686,000 2,172,000 10,193.000 $62,276,000 16,081,000 4,(527,000 21,33S,000 88,530,000 104,922,000 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 49 SCHEDULE 36.—Member banks authorized to accept drafts and bills of exchange up to 100% of their capital and surplus. Bank. Location. Granted. Capita] and surplus. Beacon Trust Company Boston, Massachusetts Commonwealth Trust Company.. do First National Bank do Fourth-Atlantic National Bank. . do International Trust Company.. . . do Merchants National Bank do National Shawmut Bank do National Union Bank do Old Colony Trust Company do Second National Bank do Webster & Atlas National Bank do State Street Trust Company do $2,000,000 2,500,000 33,000,000 4,000,000 4,000,000 5,000,000 20,000,000 2,000,000 16,000,000 January 26, 1916. . 5,000,000 July 26, 1916 2,000,000 January 25, 1918. . 4,500,000 Dedham National Bank Dedham, Massachusetts Massasoit-Pocasset National Bank Fall River, do. Safety Fund National Bank Fitehburg, do. April 11, 1918 Hartford-Aetna National Bank.. , Phoenix National Bank October 27, 1917. . July 1, 1918 4,000,000 1,500,000 May S, 1918 February 28, 1919 April 14, 1915.. . . April 24, 1918 February 21, 1919 March 30, 1916. . . June 7, 1915. December 11,1917 May 25, 1916 300,000 November 13, 1917 1,000,000 October 5, 1 9 1 7 . . . 600,000 Hartford, Connecticut do. do First National Bank New Bedford, Massachusetts New Bedford Safe Deposit & Trust Company do. do First National Bank New Haven, Connecticut.. . . Thames National Bank Norwich, do December 18, 1919 1,000,000 September 12,1919 August 3, 1920 August 5, 1919.. . . 700,000 1,700,000 1,550,000 Canal National Bank Portland, Maine Portland National Bank do. do Blaekstone-Canal National Bank. Providence, Rhode Island. . . Merchants National Bank do. do National Bank of Commerce do. do Providence National Bank July 3, 1919 June 24, 1919 July 12, 1917 November 7, 1918 December 24, 1919 December 16, 1918 1,000,000 600,000 1,000,000 2,000,000 1,700,000 1,000,000 Springfield National Bank January 25, 1918. . 1,000,000 May 4, 1916 2,000,000 do. Merchants National Bank do Springfield, Massachusetts.. . Worcester, do 50 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 37. Other accepting member banks. Bank. Abington National Bank First National Bank First National Granite Bank First National Bank Beverly National Bank American Trust Company Citizens National Bank Massachusetts Trust Company Mattapan National Bank Metropolitan Trust Company National Kockland Bank National Security Bank State Street Trust Company Brockton National Bank First National Bank Howard National Bank Manufacturers National Bank First National Bank National State Capitol Bank National Bank of Fairhaven Fall River National Bank First National Hank Mctacomet National Bank Cape Ann National Bank Gloucester National Bank First National Bank Second National Bank Merchants National Bank North Adams National Bank Thames National Bank Orange National Rank Chapman National Bank Portland National Bank Industrial Trust Company Mechanics National Bank National Exchange Bank Rhode Inland Hospital Trust Company Union Trust Company Rocklarul National Bank Peoples National Bank Chapin National Bank Chicopee National Bank Third National Bank Citizens National Bank Mechanics National Bank SCHEDULE 38. Location. Capital and surplus. Abington, Massachusetts Adams, Massachusetts Augusta, Maine Bath, Maine Beverly, Massachusetts Boston, Massachusetts do do do do do do do Brockton, Massachusetts Brunswick, Maine. Burlington, Vermont Cambridge, Massachusetts. . . Concord, New Hampshire do Fairhaven, Massachusetts. Fall Hiver, Massachusetts.... do do Gloucester, Massachusetts. . . . do H&verhill, Massachusetts Maiden, Massachusetts New Bedford, Massachusetts. North Adams, Massachusetts. N rwich, Co ecticut. Orange, Massachusetts Portland, Maine do Providence, Rhode Island. . . do do do do Roekland, Maine Southbridge, Massachusetts. Springfield, Massachusetts. . do do Waterbury, Connecticut Worcester, Massachusetts. . . $100,000 120,000 250,000 480,000 450,000 3,500,000 1,125,000 1,500,000 220,000 900,000 800,000 750,000 4,500,000 800,000 100,000 700,000 230,000 400,000 450,000 150,000 000,000 550,000 1,000,000 250,000 200,000 450,000 245,000 2,500,000 450,000 1,550,000 200,000 250,000 600,000 7,000,000 600,000 1,250,000 7,000,000 1,500,000 250,000 125,000 750,000 1,000,000 1,000,000 500,000 600,000 Non-member accepting banks and other acceptors in this district. Bank. Federal Trust Company, Boston Capital and Surplus. 51,350,000 Brookline Trust Company, 400,000 Brookline, Massachusetts Casco Mercantile Trust Company, " "700,666' Portland, Maine: Union Trust Company, Springfield, Massachusetts 1,500,000 Bankers. Brown Brothers & Company, Boston, Massachusetts. Fidelity Capital Corporation, Boston, Massachusetts. First National Corporation, Boston, MassachusettsLee, Higginson & Company, Boston, Massachusetts. J. B. Moors & Company, Boston, Massachusetts. Shawmut Corporation, Boston, Massachusetts. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 39. Banks granted fiduciary poicers under the Federal Reserve Act. Location. Date granted. January 2, 1920 January 14, 1920. . . Do January 28, 1920.. . January 29, 1920.. . April 22, 1920 Do May 11, 1920 July 15, 1920 Septembers, 1920. . October 12, 1920. . . October 27, 1920 . December 23, 1920 1 Naugatuck, Connecticut Boston, Massachusetts Hartford, Connecticut. Waterville, Maine Hartford, Connecticut Norwich, Connecticut Yarmouthport, Massachusetts. Koxbury, Massachusetts Bennington. Vermont Boston, Massachusetts Springfield, Massachusetts. . . . New Haven, Connecticut Rutland, Vermont Supplementary Application. Bank. Naugatuck National Bank Citizens National Bank Hartford-Aetna National Bank Ticonic. National Bank Colonial National Bank Thames National Bank First National Bank Peoples National Bank First National Bank •National Shawmut Bank Third National Bank New Haven Bank, N. B. A. Baxter National Bank 51 to Discount SCHEDULE 40. rates. Commercial paper. Member banks collateral notes. Agricultural and Live stock paper. Trade Acceptances. Commodity Paper. 15 days or less. 91 days to six months. 90 days or less. 90 days or less. Secured by Government war obligations. Date. 1917. March 21. . . . August 1 October 2 3 . . . December 5. .. December 12. 1918. January 7 . . . . April 8 1919. November 4. . December 12. 1920. January 3 . . . . January 2 3 . . . February 27. . June 4 3} 31 3J 4 4 4 4> i\ 4} 6 6 7 10 to 00 dayB. 4 4 4 5 5 5 5 31' 5 4 4 4 5 5 4A 5 5 4} 45 5 41 (i fi fi 7 7 41 5 45' 4! 43 6 7 41 fi G 4 4 4 15 days. 34 31» 31 31 31 s 31 4 41' 3! 6 10 to 90 days. Secured by United States certificates of indebtedness. Bankers' Acceptances, 90 daya or less. 90 days or less. H w o w w > 4 4 w 41 41 ti 41-41 4J-41 41 51 4! Si Si 6 41 41 5 58 51 > June 27, 1917.— Trade Acceptances under 91 days 4 per cent. * October 1, 1918, to February 15, 1919, 4 per cent on customers' notes carrying coupon rate of interest and Becured by fourth Liberty loan bonds. April 12, 1919, when secured by bonds of the War Finance Corporation 15 days or less 5 per cent — 1C to 90 days 5] per cent. * Rate discontinued. 56 Customers of non-member banks 4 per cent. Trade Acceptances, 15 days or less, 4 per cent. 1 w o w w o 3 3 Money rates in Boston, SCHEDULE 41. Kind. Commercial paper discounted: Over 90 days Commercial paper purchased: Over 90 davs Bankers' acceptances: Endorsed January. February. March. 6-10 6 8-10 6-8J 5J-6 6-7 6-7 6-7 6-10 6-7 6-7 6-7 5|-6 6-7 6-04 6-6i 51-54 31-5} 5-6 0-04 4.60 0.00 5-54 5-54 5-J-6 6-0* 14.39 \4.85 Loans secured by U. S. war 4i-6 1 54-64 64-7 04-7 5}-5^ 5|~6 5-6 6-01 5.49 6.05 54-84 April. May. June. 3 July. August. September. October. November. December. H O 1 M O M 0-8 0-8 6-8 8-9 8 8 8 8 8 0|-7 04-74 7J-8 7 J-8 7J-8 74-8 74-8 74-8 0-7 OJ-7 nj-7 7 5i-8| 6-04 6-7 0-7 6i-74 6-8 0-8 6-8 6J-8 7}-S 7I-8J 6-8 64-8 6-8 6j-8 6-8 6 J-8 o-s 0-8 64-8 7}-8 71-8J 73-8 75-8 fil-Bi 08-01 74-8 0-7 5.93 6.39 61-61 6|-6| 0-7 7}-8 5.92 6.25 7}-8 7{-8 61-6 J* 61-65 74-8 4.98 5.73 71-8 7}-8 6-6J 61-6J 6-7 74-S 5.34 5.74 6-7 6-7 6-7 6-7 6-64 5.46 5.94 5J-7 7-71 7-7 j 6-0| OM! 6-64 6-0 J 5.65 6.30 54-7 74-8 7J-8 0-64 0-0 i 6-04 0-8 5.90 6.95 8 Mi 0i-61 6-04 74-8 5.95 7.00 7f-8 71-81 6J-6| 01-01 6-7 74-8 5.79 6.85 6-7 6-7 6-7 04-8 M M M Period ending the 15th of each month. to SCHEDULE 2 Debits to depositors' accounts by the Clearing House banks in the larger cities of this district. 42. [000 omitted.] 1920. Bangor Fall River Hartford Holyoke Lowell Manchester 1 . . . New Bedford. . New Haven... . Portland Providence.... Springfield .. . Waterbury.... Worcester..... Total. . Mar. Apr. May. Jan. Feb. $13,S89 40,337 103,372 17,710 22,143 36,057 82,720 30,780 176,768 69,038 31,447 74,354 $11,219 $14,884 $16,251 • $14,575 38,423 43,226 39,338 48,066 104,258 103,949 92,586 121,970 16,517 17,757 17,796 18,321 23,870 26,256 25,463 20,520 23,004 • 21,396' 20,136' 39,736 38,707 33,139 44,200 78,051 81,160 69,179 95,904 34,065 37,459 33,941 27,849 164,877 195,000 169,483 149,450 6S,506 86,599 69,670 64,36fi 29,805 30,488 30,253 28,855 77,555 91,651 80,614 67,940 698,615 024,160 808,601 691,914 709,132 June. July. Aug. Sept. Oct. Nov. Dee. Total 1920. Total 1919. $149,379 431,320 1,102,133 169,752 269,840 $18,447 $14,908 35,309 48,863 102,557 114,918 17,691 21,293 24,162 30,607 20,206 i 22,805 ' 33,210 44,966 85,349 100,466 33,798 43,233 158,226 202,845 70,919 84,618 29,756 36,045 79,089 94,87!) $14,499 $10,053 $17,663 35,544 32,097 34,813 122,061 101,359 91,513 19,536 17,507 10,915 26,641 23,927 23,391 20,284 ' 23,221 i 20,502 ' 37.364 30,603 34,202 93,419 82,250 74,793 45,482 43,001 34,521 172,329 177,472 131,731 78,132 67,730 64,299 38,654 36,500 27,657 86,708 82,100 73.121 $15,722 36,838 95,672 18,225 25,029 21,388 32,190 80,314 38,277 152,025 76,230 29,327 77,498 $19,865 34,403 121,596 17,815 26,064 26,462 i 29,529 92,070 44,929 185,044 75,681 39,000 87,721 $190,975 407,347 1,278,811 217,083 298,073 225,404 i 433,063 1,015,675 447,335 2,035,250 875,788 387,787 973,230 841,ISO 621,455 774,923 677,347 773,807 684,974 715,209 368,308 859,295 352,415' 1,731,811 760,503 362,601 839,549 8,621,317 7,396,996 1,357,745 1,182,700 1,551,555 1,289,818 1,246,100 1,531,188 1,207,067 1,066,693 1,388,103 1,223,852 1,226,393 1,419,800 15.C91,020 14,942,024 Grand Total. 2,0515,300 1,806,860 2,360,156 1,981,732 1,955,23S 2,372,368 1,892,041 1,688,148 2,163,026 1,939,001 1,903,7.40 2,193,607 24,312,337 22,339,020 Boston 1 1 Not included in total. Estimated. w o H O M M B w td O w ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 43. 55 Permits for new construction in the leading cities of New England. 1919. 1920. City. Number. Number. Amount. Amount. Per cent change in year. $1,044,879 2,112,905 1,472,432 9,074.216 1 881 190 4,054,075 636.463 2,159,538 4,239,326 3 512 902 412,010 5,061,413 3,681,787 358 264 234 812 338 501 399 385 574 849 314 1,022 1,432 1826,857 1,103,870 812,311 7,935,923 1,366,313 2,5B5,090 1,124,351 1,326,176 5,026,952 6,459,252 1,587,033 3,773,293 5,624,911 +26.37 +91.41 +81.26 + 14.34 +37 68 +5S.05 -43.39 +62.84 Worcester 434 366 213 679 302 420 401 313 1S4 643 258 922 1,113 Total outside of Boston . . . . Boston 6,248 1,045 39,343,136 17,473,132 7,482 1,237 39.532,332 13,936,206 .48 +25.37 7,293 56,816,268 8,719 53,468,538 + 6.26 Fall River .. Portland Total SCHEDULE 44. -15.67 —45.61 -74.04 +34.14 -34.54 Imports and exports through the port of Boston, 1920. 1000 omitted.] Month, 1920. Excess of Imports. Imports. Exports. January. . February. March. . . April May June July August. . . September October. . November December. $19,187 9,573 17,867 16,147 23,416 21,026 14,727 12,671 15,210 15,179 13,214 14,585 $46,749 48,419 60,199 54,401 21,489 39,749 29,256 35,131 16,368 14,441 14,058 12,492 $27,562 38,846 42,332 38,254 1 1.927 18,723 14,529 22,460 1,158 7381 844 2.0931 Total. . 192,802 392,752 199,950 'Excess of exports. Commercial failures in New England. SCHEDULE 45. 1920. State. Liabilities. No. in $1,373,049 252,090 420,044 10,970,133 339,346 6,979,424 883 20,334,092 No. Maine New Hampshire. Vermont Massachusetts.. . Rhode Island.. . . Connecticut Total 1919. 74 36 443 81 230 1918. 1917. Liabilities. No. Liabilities. No. Liabilities. 85 20 15 427 71 194 $717,703 165,279 594,239 7,402,927 999,877 2,932,462 135 38 36 739 124 272 $1,516,696 243,919 363,240 13,010,340 683,456 4,067,709 151 49 4S 395 105 319 $1,424,353 380,768 422,831 10,777,064 503,488 8,642,146 812 12,812,487 1,344 19,885,360 1,067 22,150,650 56 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. SCHEDULE 46.— Number of employees in the various departments December 31, 1920, and December 31, 1919. 1920. Department. Male. 1919. Female. BANK? Officers' Federal Reserve agent's Chief clerk's Note teller's Collateral Return teller's Total 13 10 1 1.5 5 1 28 17 10 2 11 2 6 2 25 21 2 3 2 1 1 12 2 3 1 2 102 10 16 1 12 4 13 13 4 1 1 Total. 13 22 3 18 6 3 130 33 26 3 23 6 21 6 3 3 2 1 Male. 12 5 1 11 4 1 18 20 11 1 6 1 8 2 11 11 2 2 2 Female. Total. 12 1 14 3 13 5 5 104 32 29 2 9 4 22 2 22 11 5 2 3 9 2 2 1 4 86 12 18 1 3 3 14 11 3 1 1 2 3 5 3 3 6 180 206 386 133 173 306 76 61 137 65 59 124 TRANSIT DEPARTMENT: City Government checks Mailing Total 31 19 7 1 9 5 31 19 7 6 9 25 20 11 1 6 25 20 11 7 143 60 209 122 65 187 63 3 92 1 155 4 55 7 73 1 128 8 66 93 159 62 74 136 389 365 317 312 BOND (FISCAL AGENCY): Bond Certificate of indebtedness.. . . Total Grand Total ] 2 754' Does not include 22 employees of War Savings Organization. Does not include 126 employees of War Savings Organization. 629 « 57 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART A. CASH RESERVE HELD BY FEDERAL RESERVE BANK AGAINST DEPOSIT AND NOTE LIABILITY 2B0 2S0 , 22E http://fraser.stlouisfed.org/ JAN. FEB. MAR. APR. Federal Reserve Bank of St. Louis 28 MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. 58 [ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART B. PERCENTAGE OF CASH RESERVE ACTUALLY HELD AGAINST COMBINED DEPOSIT AND NOTE LIABILITY /S/9 1910 31 at in K III http://fraser.stlouisfed.org/ JAN. FES. Federal Reserve Bank of St. Louis III U a. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART C. ADJUSTED PERCENTAGE OF RESERVE AGAINST DEPOSIT AND NOTE LIABILITY •0 '92O >B 40 H Z III (J » IB U BC 111 0. )0 2B 1920 http://fraser.stlouisfed.org/ FEE Federal Reserve Bank of St.JAN. Louis UAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC 59 60 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART D. MONTHLY AVERAGE RESERVE RATIO 1920 1919 RATIO A M *> s o D N T F M A s o M D N 80. Fe de ral Resc rve Reink of Bist< n « Adj *3fe /S / \\ / 70. / 60. , 50. i i -**1 ^ * / 40. / => 30 * 20 10. 0 F ;de r a —~ , / \ / \ V TV< - y ** *~- i / \ / \ _/ /" ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART 61 E. RESERVE ACCOUNTS OF MEMBER BANKS CARRIED IN FEDERAL RESERVE BANK ISO 160 I4D 140 20 130 130 /920 120 I 10 (0 A l\ s o a u. A . • • . • • • ' 100 •• *• '/9/9 j - 90 A eo a V 1313. 1 \r V A \ •A V A y \- 11 • 1 J\ / \ A •* • .••. : V \i i> / 1919 S / V \ A/ V ^ ix 1 ' Ml II y A/ 120 I 10 100 /3/d 80 if o a 80 u. a 70 0! z o 7 — BO BO BO SO 40 40 ° 0) CO a 30 20 20 10 10 JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC — ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART F. FEDERAL RESERVE NOTES IN ACTUAL CIRCULATION (\ I r\ 1920 17S X1 1919 1320 / 0) ../ r O 17s a o 01 I7S O a / 1919 \ S \ 62 . / / ^/ y t * * /S/8 http://fraser.stlouisfed.org/ JAN. FEB. UAR. Federal Reserve Bank of St. Louis APR. UAY. JUNE JULY AUG. SEPT. OCT. NOV. DEC o m ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHAKT G. BILLS DISCOUNTED AND BOUGHT ELIMINATING TRANSACTIONS OTHER FEDERAL RESERVE BANKS WITH 300 27S /920 19/9 1 275 / • 2E0 22B J ;: •• t 1 \ i VJ \ \ \\ 200 /9/ 1 Q . n a < o a o I // ". •••V. ' • / \l \ ,...••••-' -1 '• ,\ VI :| \l *. 176 j 1 200 1916 : | -i \ ; j • •'* V K A \ V V AS > / A ••, V U) i / ; • \ \ a V. /1 • 1 // '920% 175 < -I _l o a / z a j I \; ./•9/S ! I I w J \y ••• IB0 i 1 1 100 76 I A VV r \ i 1 i 1 i i i \ /I 1/ V 75 ."V \t V 60 25 0 http://fraser.stlouisfed.org/ JAN. FEB. MAR. Federal Reserve Bank of St. Louis APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. 63 64 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. CHART H. HDLDINGS OF ACCEPTANCES PURCHASED IN THE OPEN MARKET 80. ,80 JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. o C» \ , \ "—. / o/ in —. - ••"•••" - — \ u w TJ V O III ? Ji O0 ^C p / i 3 • c 0 1 § 3 « 2 i t 1 1 •3--I '•, ; oi Si :2 \; in c -^ •'••X *v-.. 03 > \ V 2 100 -—^ —=i c o o \\\ / \\ r 150 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. si a \ i a ft • ^ Z! " 1—<f • 1 X i CLiU1 Hz UJ H m ^ j 65 a u i i Vt t o 175 1920 1921 1918 1919 1917 1915 IVIN ICES COST PRICE H0I3 THE FOLLOWING EXHIBITS WERE PREPARED BY THE FEDERAL RESERVE BOARD FOR INSERTION IN THIS REPORT 68 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. EXHIBIT A—Movement of Principal Earning Assets, Reserves, Federal Reserve Note and the calendar [000 omitted.] Discounted bills. Discounted for member banks in this district. Pate, 1820. January 2 . . January 9 January 16 January 23 January 30 February 6 February 13 February 20 February 27 March 5 March 12 March 19 March 26 April 2 April 0 April 16 April 23 April 30 May 7 May 14 May 21 May 28 June 4 June 11 June 18 June 25 July 2 July 9 July 16 July 23 July 30 August 6 August 13 August 20 August 27 September 3 September 10 September 17 September 24 October 1 October 8 October 15 October 22 October 29 November 5 November 12 November 19 November 26 December 3 December 10 December 17 December 23 December 30 Total earning assets. 8237,434 220,358 217,622 206,674 234,964 240,141 235,681 216,538 218,642 226,167 232,239 211,311 235,795 235,146 213,817 223,110 210,415 207,798 220,828 233,927 227,103 226,690 222,934 225,126 212,436 201,896 238,542 224,338 210,624 203,059 205,701 210,773 213,637 230,185 227,731 257,769 266,945 206,853 236,470 236,388 234,523 237,923 240,195 245,182 220,055 235,653 231,414 220,098 238,856 231,802 210,911 223,275 220,324 Total held. $184,650 159,760 156,509 148,820 161,018 168,883 188,531 177,998 180,424 188,339 192,815 173,242 195,865 185,417 163,760 176,260 160,786 157,085 166,056 178,740 169,814 169,830 168,366 170,318 159,868 146,216 178,215 166,168 152,643 144,728 149,581 163,661 166,754 188,306 185,546 210,357 187,711 133,627 183,331 184,212 182,325 155,288 174,079 191,117 170,719 183,157 167,931 172,165 172,296 165,228 158,514 181,928 178,543 Discounted for other Federal Reserve banks. $20,000 30,000 14,995 23,399 11,463 18,000 35,920 20,260 22,126 35,980 29,290 21,503 20,366 17,402 27,117 20,533 12,128 34,461 35,994 34,280 36,495 44,923 59,514 60,429 67,916 66,911 97,014 72,812 45,308 60,655 52,641 52,450 43,694 72,926 81,199 51.389 5.5,414 35,604 27,217 24,749 17,796 15,298 19,926 16,575 B. Secured by Total. government war obligations $184,656 159,760 156,509 148,820 161,018 168,883 188,531 177,998 180,424 168,339 162,815 158,247 172,466 173,954 145,760 140,340 140,526 134,959 130,076 149,450 148,311 149,464 150,964 143,201 139,335 134,088 143,754 130,174 118,363 108,233 104,658 104,147 106,325 120,390 118,635 113,343 114,899 108,319 122,676 131,571 129,875 111,594 101,153 109,918 119,330 127,743 132,327 144,948 147,547 147,432 143,216 162,002 161,968 $123,914 105,100 108,935 105,562 112,933 116,703 106,651 100,581 104,470 97,509 98,917 88,339 90,746 85,811 77,695 83,017 75,866 82,885 79,645 88,945 91,753 94,758 88,498 83,994 76,778 76,196 78,349 67,058 58,872 58,100 61,766 62,139 61,937 70,086 66,905 61,165 62,404 00,699 61,743 59,037 60,970 47,253 51,464 53,341 58,254 62,375 59,241 65,994 66,097 67,976 67,371 68,618 68,741 C. Per cent B-i-A. 67.1 65.8 69.6 70.9 70.1 09.1 56.6 56.5 57.9 57.9 60.8 55.8 52.6 49.3 53.3 59.2 54.0 61.4 61.2 59.5 61.9 63.4 5S.6 58.7 55.1 56.8 54.5 51.5 49.7 53.7 59.0 59.7 58.2 58.2 56.4 54.0 54.3 56.0 50.3 44.9 46.9 42.3 50.9 48.5 48.8 48.8 44.8 45.5 44.8 46.1 47.0 42.4 42.4 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. 69 Deposit Liabilities, and Reserve Percentages of the Federal Reserve Bank of Boston during year 1920. [000 omitted.] Purchased bills. Reserve Percentage. Acceptances purchased in open market. $77,483 09,237 61,864 59,243 52,532 47,122 39,997 33,430 28,002 25,648 24,501 20,470 20,774 19,854 21,672 24,934 27,400 28,583 32,052 33,099 35,143 34,746 32,253 32 478 30,241 28,181 33,132 30,992 28,820 27,270 25,456 22,491 18,352 19,734 20,116 25 383 25,602 31 06630,780 30,038 30,045 34,494 29,931 28,788 27,294 23,247 ' 22,852 22,618 21,391 20,899 19,282 19,229 19,532 Acceptances sold to other Federal Reserve1 banks. $58,849 30,953 27,364 23,819 1,021 + 1,755 17,013 17,013 11,923 10,185 7,439 4,542 2,985 1,325 820 373 +5,662' +4,918 +4,918 +4,918 +4,351 +3,445 +2,518 +1,444 +15,666 + 12,970 +3,197 "+7,666' +7,017 +437 Total acceptances held. $18,834 38,284 34,500 35,424 51,511 48,877 22,984 16,417 16,079 15,463 17,062 15,928 17,789 18,529 20,852' 24,561 27,400 28,583 32,652 33,099 35,143 34,746 32,253 32,478 30,241 33,183 38,050 35,910 33,738 31,621 28,901 25,009 19,796 19,734 20,116 25,383 25,502 31,066 30,780 30,038 30,045 49,494 42,901 31,985 27,294 30,247 29,869 23,055 21,391 20 899 19,282 19,229 19,532 U. S. Securities. $34,144 22,314 20,613 22,430 22,435 22,381 24,166 22,123 22,139 22,365 22,362 22,141 22,141 31,200 29,205 22,289 22,229 22,130 22,120 22,088 22,146 22,114 22,315 22,330 22,327 22,497 22,277 22,260 24,243 26,710 27,219 22,103 27,087 22,145 22,069 22,029 53,732 22,lfiO 22,359 22,138 22,153 33,141 23,215 22,080 22,042 22,249 33,614 24,878 45,169 45,675 33,115 22,118 22,249 Total cash reserves. Net Deposits. $157,502 156,291 164,169 171,466 149,326 142,386 147,689 175,843 188,717 181,686 170,953 198,238 168,044 173,745 192,008 186,796 201,436 199,847 185,766 185,633 191,814 195,591 201,772 194,334 199,568 222,362 186,876 200,263 207,898 222,535 223,849 221,145 223,008 211,771 216,828 190,656 185,804 221,616 210,203 221,998 223,048 228,072 211,017 203,175 229,518 204,048 204,113 219,490 198,880 204,520 210,502 214,355 219,158 $116,845 108,150 118,800 112,397 115,332 105,903 99,274 103,833 113,970 115,059 110,912 114,112 111,944 107,434 107,808 113,173 113,658 110,219 105,529 118,623 115,3fi9 116,153 113,699 108,912 100,284 111,189 108,349 104,738 102,080 110,536 111,636 108,497 110,315 112,263 112,544 108,541 109,581 85,410 111,001 111 188 110,739 119,622 110,814 113,336 116,331 110,303 100,513 108,853 106,805 105,794 85,629 99,015 104,893 Federal Keserve notes in circulation. $243,368 233,500 228,164 230,999 234,991 242,256 249,453 254,247 259,702 260,275 260,873 265,045 261,097 270,466 267,284 266,020 267,634 206,568 269,740 269,531 271,516 273,944 278,353 277,997 279,083 280,617 284,496 287,332 284,369 282,284 284,842 289,872 292,189 294,550 296,131 303,206 307,079 305,693 298,249 309,580 308,930 308,155 301,833 296,168 293,735 289,041 288,690 290,116 290,251 289,134 293,067 295,140 291,196 Actual. Adjusted.5 43.7 45.7 47.3 49.9 42.6 40.9 42.4 49.1 50.5 48.4 46.0 52.3 45.0 46.0 51.2 49.2 52.8 53 1 49.5 47.8 49.6 50.1 51.5 50.2 52.0 50.8 47.0 51.1 53.8 50.7 56.5 55.5 55.4 52.1 53.1 46.3 44.6 56.7 51.4 52.8 53.1 53.3 51.1 49.0 56.0 51.1 51.6 55.0 50 1 51.8 55.6 54.4 55.3 27.4 36.7 39.4 43.0 42.3 41.4 37.5 44.4 47.3 51.0 52.0 55.0 50.4 48.7 55.8 58.6 58.1 58.9 59 1 55.4 55 1 55.4 55.9 57 2 58.0 61.1 57.6 61.5 63.9 67.1 68.7 71.1 70.2 68.5 69.4 69.9 62.1 08.2 00.2 05.3 65.6 07.0 72.0 70.2 68.5 66.7 62.4 61.9 56 3 56.3 59.6 59.4 59.5 1 Plus sign indicates net amounts bought from other Federal Reserve banks. Adjusted percentages are calculated after increasing or reducing reserves held by the amount of accommodation extended to or received from other Federal Reserve banks. 2 70 ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. EXHIBIT B i ?6 SO n FEDERALRESERVE BANK OF BOSTON. MOVEMENT OF EARNING ASSETS DURING 1920. i A _*^ Uli so 75 SO 2S UNITED STATES SECURITIES in mi PURCHASED BILLS MELD 2i> 0 -*-— PERCEHTA6E0F WAR PAPER TO TOTAL DISCOUNTS FORBANKS in DISTRICT. ZSO 250 $25 DISCOUNTED BILLS. (SEE MOTE BELOW) 300 TOTAL EARNING ASSETS JAN. FEB. MAR. APR. MAr\lUNE\lULr\AUG\sEPT\ OCT. NOV. DEC. NOTE: A—Paper secured by Government war obligations discounted for banks in District. B—Total paper discounted for banks in District. * C—Total discounted paper held. Space between lines B and C represents paper http://fraser.stlouisfed.org/ discounted for other Federal Reserve Banks. Federal Reserve Bank of St. Louis ANNUAL REPORT OF FEDERAL RESERVE BANK OF BOSTON. EXHIBIT C FEDERALRESERVE BANK OFBOSTON NET DEPOSIT LIABILITY, FR. NOTE CIRCULATION, CASHRESERVES.ANORE6ERVERATIOS.I9EO.5 0 90 90 SO 70 XI -' B, 6O 60 !!/— 5O v\ 4O so A \ 40 / 30 I 20 10 10 O RESERVE PERCENTAGES. ACTUAL 'A;ADJU5TEP-B:SEEN0TEBEL0IY. ISO too 50 ISO 1x1 ^« 100 xxll X X X ^ Hi DEPOSIT LIABILITY x x # xxM xxxl 350 xxii so 3S0 F.R.tiOTECIRCULATlOn _( 450 -too 350 250 200 xlM XxM 300 Nxxxja W ii a 1 Mn xxxl x ^ 450 400 350 300 250 aoo m im m m Him mSBm ISO ISO • M 100 100 SO so O DEPOSIT AND FR. NOTE LIABILITES;L, AND TOTAL RESERVES,'C: \JAN. FEB. MAR. APR. MAr ME JULY AUG. SEPT. OCT. NOV. DEC. Jlctjlisted percentages are. calculated, after increasing or reducing reserves held - by the. amount ofaccomadatwrv http://fraser.stlouisfed.org/ extended, to or received fivnvotherJvdensU.3Userre^SanKt. Federal Reserve Bank of St. Louis 71