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F E D E R A L R E S E R V E BANK O F NEW YORK
Fiscal Agent of the United States
No. 3203 1
[ Circular
April 11, 1947 J
Public Notice of Offering of $ 1 ,100,000,000, or thereabouts, of 91-Day Treasury Bills
D a te d A p ril 1 7 , 1 9 4 7
M a tu rin g J u ly 1 7 , 1 9 4 7
To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:
Following is the text of a notice today made public by the T reasury Department with respect to a new offering of Treasury
bills payable at maturity without interest to be sold on a discount basis under competitive and fixed-price bidding.
FO R R E L E A S E , MORNING N E W S P A P E R S ,
Friday, April 11, 1947.
T R E A S U R Y D EPA RTM EN T
Washington
The Secretary of the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day Treasury
bills, to be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this
series will be dated April 17, 1947, and will mature July 17, 1947, when the face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Standard time, Monday, April 14, 1947. Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and
recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Secretary of the Treasury of the amount and price range of« accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, tenders for $200,000 or less from any one bidder at 99.905 entered on a fixed-price basis will be accepted
in full. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash
or other immediately available funds on April 17, 1947.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift,
or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority.
F o r purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a )(1 ) of the Internal Revenue Code, as amended by Section 115 of
the Revenue A ct of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue
until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in
his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th
floor, 33 Liberty Street) New York 45, N. Y ., or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N. Y .,
up to two o’clock p.m., Eastern Standard time, on Monday, April 14, 1947. It is requested that tenders be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. Payment for the Treasury
bills cannot be made by credit through the War Loan Deposit Account. Payment must be made in cash or other imme
diately available funds.
A l l a n S p rou l, President.
(Extract from Treasury Department statement released for publication April 8, 1947, announcing
results after tenders were opened for Treasury bills dated April 10, 1947 maturing July 10, 1947)
Total applied f o r .........$1,841,319,000
Total a cce p te d .............$1,314,459,000 (includes $20,834,000
entered on a fixed-price basis at
99.905 and accepted in full)
nnnnc,
• t *
t
Average price . . . . 99.905+ Equivalent rate of discount
approx. 0.376% per annum
Range of accepted competitive bids:
Federal Reserve
District
Boston .............................
New York .......................
Philadelphia ...................
Cleveland .........................
Richmond .........................
...............
H ig h ..........................
99.907
Equivalent rate of discount
approx. 0.368% per annum
St L o u is ...........................
Minneapolis .....................
7,460,000
1,040,000
5,540,000
1,040,000
Low .........................
99.905
Equivalent rate of discount
approx. 0.376% per annum
n aiiSaS C*ty ...................
E ^ r a n iis c o '!!!!!!!!
i ? 9Q-’nnn
g S g g
^ ’oo-’nnn
T otal .......................
-------------------$1,841,319,000
-------------------$1,314,459,000
(70 percent of the amount bid for at the low price
was accepted)
Total
Applied for
$ 27,870,000
1,375,090,000
16,630,000
9,625,000
3,595,000
^ 50000
Total
- Accepted
$ 23,220,000
972,340,000
12,130,000
7,225,000
3,145,000
(OVEB)
17C
IMPORTANT—If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph beaded “Competitive Bid”. If it is desired to bid on a fixedprice basis, fill in only the maturity value in paragraph headed “Fixed-Price Bid”.
DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
No....................
TENDER FOR 91-DAY TREASURY BILLS
Dated April 17, 1947.
Maturing July 17, 1947.
Dated at
To
F e d e r a l R e se rv e B a n k o f N ew
1947
Y o rk ,
Fiscal Agent of the United States.
COMPETITIVE BID
FIXED-PRICE BID
Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
April 11, 1947, as issued by the Secretary of
the Treasury, the undersigned offers to pay
Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on April
11, 1947, as issued by the Secretary of the Treas
ury, the undersigned offers to pay a fixed-price
of 99.905 (rate per 100) for a total amount of
$ ...........................................................(maturity value)
.................................................. * for a total amount of
(Rate per 100)
$ ......................................................... (maturity value)
of the Treasury bills therein described, or for
any less amount that may be awarded, payment
therefor to be made at your bank in cash or other
immediately available funds on the date stated
in the public notice.
(Not to exceed $200,000)
of the Treasury bills therein described, payment
therefor to be made at your bank in cash or other
immediately available funds on the date stated
in the public notice.
The Treasury bills for which tender is hereby made are to be dated April 17, 1947, and are to mature
on July 17, 1947.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name of Bidder.
By
(Please print)
(Title)
(Official signature required)
Street Address ..........................................
(City. Town or Village, P.O. No., and State)
If this tender is submitted for the account of a customer, indicate the customer’s name on line below:
(Name of Customer)
(City, Town or Village, P.O. No., and State)
Use a separate tender for each customer’s bid.
IMPORTANT INSTRUCTIONS:
1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$1,000 (maturity value). A separate tender must be executed for each bid.
2. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation
authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a rep
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem
ber of the firm, who should sign in the form “ ................................................................................................................ . a copartnership, by
......................................................................................................................... . a member of the firm”.
3. Tenders will be received without deposit from incorporated banks and trust companies and from respon
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of
2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty
of payment by an incorporated bank or trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.
Payment by credit through War Loan Deposit Account will not be permitted.
T E N T B —876-a
* Price must be expressed on the basis of 100, with not more than
three (iecimai places. Fractions may not be used.
( over )
d
J? ¿j,-o 3
April 17, 1947
To
Officers and Chiefs, and
Others Concerned
From
Bulletin #7204
John J, Clarke
Subject: President’s Report to
Directors for 1946*
There is transmitted herewith a copy of the Presidents Report
to Directors for 1946*
\
You will note from Mr. Sproul’
s letter* dated
March 31* 1947* transmitting the report to the directors* that he believes
that the report in its present form should be discontinued; and that he
proposes that Part 1 be continued in some form, that Part 2* the statist
tical summary, be discontinued, and that the material now in the Appendix
be made available as an internal bulletin»
The directors’comments
concerning this proposal have been invited,
>
Comments and suggestions with respect to the foregoing proposal
are also invited from the officers and the chiefs and other employees
receiving copies of the report*
It will be appreciated if such comments
and suggestions are forwarded to me prior to June 1* 1947*
venience, the attached form may be used*
For your conr
M I S ^ .3
3 -2 5 0 M
F E D E R A L R E S E R V E BANK
2 /
O F N EW YORK
O F F IC E C O R R E S P O N D E N C E
DATE_________________ I 947
TO_______
Mr* Clarke
FROM-___
subject:
Suggestions Regarding President^
_______
Report to Directors______ ______ _
In reply to Bulletin #7204, I have the following comments and suggestions:
Part 1
Part 2
Appendix
(Signature)
'(Title)
(Division)
(Use reverse side if necessary)
(Department)
FEDERAL RESERVE BANK OF NEW YORK
‘President’s cReport
to
'D irectors
for 1946
F
ederal
of
R eser v e B ank
N
ew
Y
ork
March 31, 1947.
To the Directors of the
Federal Reserve Bank of New York:
Herewith is a detailed report on the operations of the
bank during the year 1946.
This is a confidential report of internal operations
giving a more detailed and intimate view than is possible or
appropriate in a public document such as our annual report to
the stockholders of the bank which will be issued shortly.
As in previous years, the important and interesting
developments in our operations during the year are reviewed in
Part 1, a statistical summary of the principal operations of the
bank during 1946 is set forth in Part 2, and the functions of
each of the operating units of the bank are described in the
Appendix.
The President's Report to Directors was first issued
in 1943 (for the year 1942) upon an experimental basis; and sub
sequent reports, containing such improvements as were indicated
by experience, have been issued upon the same basis. It is now
believed that our experience with these reports justifies the
conclusion that, balancing cost and effort against utility,
the report in its present form should be discontinued, but that
certain of its features, which seem to have the greatest useful
ness, should be preserved. Therefore, I propose for the future
that Part 1 of the report be continued in some form, because of
its informational and record value; that Part 2 of the report be
discontinued; and that the material contained in the Appendix be
eliminated from the report, while being made available to the
staff in the form of an internal bulletin. I shall be glad to
receive your comments concerning this proposal.
CONTENTS
part
i
Page
INTRODUCTION ........................................................... 1 - 1
Im p o r t a n t a n d i n t e r e s t i n g d e v e l o p m e n t s lm
OPERATIONS DURING 1946 ..............................................
3
FISCAL AGENCY OPERATIONS ...........................................
Government Financing Operations .................................
Government Securities Issued . . ..........................
Government Securities Redeemed or Exchanged ................
Government Coupons, . . .
..........................
» .
Armed Forces Leave Bonds .......................................
Reconstruction Finance Corporation .............................
United Nations Deposit Account .................................
Foreign Funds Control ...........................................
3
3
4
5
5
6
6
7
7
OPEN MARKET OPERATIONS..............................................
8
CREDIT AND
Loans to
Consumer
Loans to
DISCOUNT OPERATIONS ....................................
Member B a n k s ...........................................
Credit Control (Regulation W ) ............. ...
Industry.................................... ...
10
10
10
11
FOREIGN OPERATIONS .................................................
Foreign Accounts ..................................................
Loans on Gold .....................................................
International Bank and F u n d ....................................
Export-Import Bank ........................................ ...
Gold Movements.............................................. ... .
Staff Group on Foreign Interests.................................
Foreign Central Bank Visitors. .................................
Mexico City Central Bank Conference. ....................... ...
11
11
12
13
141415
16
16
RESEARCH STUDIES AND BANK PUBLICATIONS . . .
................
Foreign Missions .................................................
17
19
CHECK C O L L E C T I O N S .................................................
Speeding Collections by Air Freight. . .......................
Check Routing Symbol P l a n ....................... ................
Change in Operating Procedure....................................
Decrease in Government Checks................ ... ................
20
20
21
22
22
BANK SUPERVISION AND R E L A T I O N S ....................................
M e m b e r s h i p ....................... ................................
Farm Credit F i l e ....................................... ...
22
22
23
CONTENTS
PART 1
(Continued)
Page
P E R S O N N E L .......................... ................................ 1 - 2 3
23
Returning Veterans , . . , ................. . . . . *
Salaries. . . . . . .
.................... . . . . .
24
Payroll Deductions for Serj.es E Savings Bonds . . . . . .
24
Employee Training Program . . .
.............
24
.•..bsic. . . . . . . . . . . . . . . . . . . .
24
The Federal Reserve Club
24
BUFFALO BRANCH OPERATIONS............................................... 25
25
Amendment of Branch By-laws .................... , . . . .
Savings Bond Redemption Division. .................... ............. 26
R. F. C- Division O p e r a t i o n s ....................... ... ..............26
RegvJ&tior
- consumer Credit . . . . . . . . . . .
26
Check If •>-,j in , Symbol....................... ........................... 2.6
Ban*. '■
'1 't. .oiib
. . . 9 * .
27
Persoiiiiei . . . . . . . . . . . . . . . . . .
27
PART 2
Page
STATISTICAL SUMMARY OF PRINCIPAL OPERATIONS OF THE BANK
AND THE BUFFALO BRANCH (Following page 1 - 2 8 ) .................... 2 - 1
APPENDIX
Page
GENERAL INFORMATION REGARDING THE FUNCTIONS OF
VARIOUS DEPARTMENTS OF THE BANK (Following page 2 - 30) .
FEDERAL RESERVE BANK OF NEW YORK ORGANIZATION
CHART. .............................................. *
,
.
. AP - 1
Following A P - 1 5
PART 1
INTRODUCTION
The year 194-6 was a year of gradual transition from war to peace
time operations, with some decline in volume of work:, particularly in the
fiscal agency function.
Reduction in staff lagged behind reduction in volume
of work, partly because of the difficulty in reducing personnel in an orderly
manner, partly because of the continued reemployment of returning service
men, and partly because of prospective adjustment to a five-day work week.
The fact of excessive staff plus the probably valid assumption that
wasteful and inefficient practices had crept into our operations during the
war period made it essential that all of our departments be checked for per
formance.
In July 1946, therefore, a study of the organization and expenses
of the bank was initiated, together with an intensification of the work of
our Planning Department which is constantly surveying operations and expendi
tures with a view to promoting economy and efficiency.
The results of this
study should show themselves during the year 1947.
Problems of personnel have assumed an increasingly important place
in the bank as they have in the whole banking comiminity and in the business
community generally.
The Federal Reserve Bank of New York has always prided
itself, and with considerable reason, on its high standards of personnel per
formance, the working conditions which it has maintained, and the morale of
its staff.
In order to continue and improve this record, we began, in
July 1946, a complete review of all of the jobs in the bank, which will lead
to a revised job evaluation and salary classification schedule.
This initial
task should be completed during the first half of 1947, but there will be a
continuing task involved in keeping the schedules alive and abreast of new
1-1
developments.
If competently done and fairly administered, this job evalua
tion and salary classification plan should assure each employee of compensa
tion which is appropriate to the duties and responsibilities of his job, and
which is properly related to the compensation of others in the bank.
This
is essential to individual satisfaction with employment conditions and to
the maintenance of general staff morale.
Both in the review of the bank's organization and expenses and in
the program of job evaluation and salary classification, the objective is a
higher standard of personal performance and increased output of work per man
hour and per man year.
Only in this way can the higher salaries and shorter
working week, which we have established and which we favor, be justified and
maintained.
1-2
PART 1
IMPORTANT AND INTERESTING DEVELOPMENTS
_______ IN OPERATIONS DURING 1946
FISCAL AGENCY OPERATIONS
Government Financing Operations
The Victory Loan Drive in November and December of 1945, marked
the end of the period of war financing.
The funds raised in that drive
increased the Treasury's cash balance to $56 billion.
As the result of the
sharp reduction in the Treasury's current deficit, because of the rapid
decline in military expenditures and the continuation of high tax receipts,
the Treasury was able not only to meet the deficit without further borrow
ing (other than continued sales of savings issues), but also to enter upon
a program of debt retirement during 1946.
The three principal phases of the
Government's financing program in the past year were (1) redemption of $23
billion of marketable Government securities held largely by banks, (2) refund
ing all or part of certain matured issues and (3) continued sales of Savings
Bonds to non-bank investors.
From a high point of $280 billion on February 28, 1946, the public
debt was reduced $21 billion to ij>259 billion at the year end.
In addition
to cash redemptions of maturing securities aggregating $23 billion, other
maturing securities (excluding Savings Bonds) in a total amount of $30 billion
were replaced by a corresponding amount of securities issued in exchange.
Gross sales of Savings Bonds were |7 billion, whereas redemptions amounted
to $6 billion, including approximately $284 million of bonds presented for
payment at maturity.
1 - 3
As a contribution to the Treasury's fall campaign to sustain in
terest in the savings bond program, and particularly the payroll deduction
plan, this bank helped sponsor, and paid for, a series of dinner meetings
arranged by the State offices of the United States Savings Bond Division
in New York and New Jersey.
The dinners, which were held during the month
of October in Buffalo, Rochester, Syracuse, Binghamton, Albany, New York City,
and Newark, N. J., were attended by industrial leaders of each area.
At each
meeting there were talks by a local industrialist, and by representatives of
the Federal Reserve Bank and the United States Savings Bond Division.
attendance at the seven meetings was about 1,250,
Total
The State Directors of
the Savings Bond Division have indicated that these dinner meetings produced
increased interest and participation in the payroll deduction plan.
Government Securities Issued
The end of the period of war financing brought about a substantial
decline in the volume of securities delivered on original issue by the bank,
as fiscal agent of the United States,
The volume of such transactions
handled during 1946, however, was substantially in excess of the volume
handled in any year before the beginning of defense and war financing.
The
number of pieces (individual securities) delivered by the bank in connection
with original issue and the total issue price of such securities for the
last seven years were approximately as follows:
Year
Savings Bonds
Other Treasury Issues
Total
Number of Pieces
1940
1941
1942
1943
1944
1945
1946
310,000
2,340,000
17,330,000
32,063,000
37,927,000
30,904,000
12,255,000
107,000
556,000
848,000
931,000
1,202,000
1,133,000
380,000
417,000
2,896,000
18,178,000
32,994,000
39,129,000
32,037,000
12,635,000
$ 4,954,183,000
7,756,006,000
29,649,259,000
58,030,565,000
75,161,723,000
89,956,133,000
74,840,521,000
$ 5,027,686,000
8,430,238,000
31,198,518,000
60,056,157,000
77,362,927,000
91,802,692,000
7 6,Oil,.896,000
Issue Price
1940
1941
1942
1943
1944
1945
1946
$
73,503,000
674,232,000
1,549,259,000
2,025,592,000
2,201,204,000
1,846,559,000
1,171,375,000
1 - 4
This decline in volume of issues following the period of war
financing has required a reduction in the staff engaged in such work.
The
number of persons engaged in work related to original issues of securities,
on selected dates, is estimated as follows:
Date
June 30,
December
June 30,
December
June 30,
December
Number of Employees
1944
31, 19441945
31, 1945
1946
31, 1946
533
490
459
436
264
191
Government Securities Redeemed or Exchanged
During the year 69 marketable Government issues (bonds, notes,
bills and certificates of indebtedness), aggregating ^121.5 billion face
amount, matured or became due.
At this bank, 530,028 pieces with a total
par value of $87.7 billion were received for redemption or exchange, com
pared with 440,591 pieces aggregating |72.14 billion par value in 1945»
Exchanges, transfers and other transactions in connection with outstanding
issues were at levels substantially comparable with those of the previous
year.
The total amount of Savings Bonds redeemed in this Federal Reserve
District during the year ?ras approximately the same as in 1945.
During the
last seven months of the year, however, there was a noticeable decline in
the volume of redemptions, and the number and amount of bonds received for
redemption in November v/ere the lowest in 20 months.
In 1946, 21 million
redeemed Savings Bonds having a total maturity value of $1,101 million were
handled by this bank and its branch, compared with 21 million pieces aggre
gating $940 million (maturity value) in 1945.
Government Coupons
The number and amount of Government coupons paid by this bank
reached a new peak in 1946.
During the year 7,262,390 coupons amounting to
1 - 5
$1,769,487,000 were paid as compared with 6,473,837 coupons amounting to
>1,501,151,000 paid in 1945 - an increase of 12.18$ and 17.87$ respectively.
Armed Forces Leave Bonds
Commencing in October 1946, this bank undertook certain functions
in connection with the issuance and redemption of Armed Forces Leave Bonds.
The bonds are issued by the Army and the Navy, and electric accounting
machine cards representing the bonds issued are forwarded to the Federal
Reserve Banks with deposits, in the aggregate face amount of the bonds, for
credit to the Treasurer of the United States.
The Federal Reserve Banks
verify the amount of the deposits, sort and list the cards mechanically, and
forward the cards and the related lists to the Treasury Department.
This
bank receives about 10,000 cards each day, and will continue to receive them
at that rate for the first four or five months of 1947 when it is expected
all of the bonds will have been issued.
The Federal Reserve Banks will also redeem Armed Forces Leave Bonds
prior to maturity in cases in which the owner dies or assigns his bond to the
Veterans Administration in payment of premiums, reserve or loans on a United
States Government life insurance policy or a national service life insurance
policy.
Reconstruction Finance Corporation
On March 25, 1946, by Executive Order No. 9689 the War Assets
Administration was established within the Office of Emergency Management to
administer the disposal of domestic surplus property theretofore administered
by the War Assets Corporation, a subsidiary of the Reconstruction Finance
Corporation.
As the War Assets Administration is not affiliated with the
Reconstruction Finance Corporation, our agency operations in connection with
the disposal of such surplus property have since been discontinued.
During the period January 1 to November 30, 1946, we received and
handled about 11,500 Surplus Declaration Forms transferring from our inventory
1 - 6
records to the disposal agency (now the War Assets Administration) the
record of surplus real and personal property owned by the Reconstruction
Finance Corporation, which originally cost the Corporation approximately
>;?353,000,000.
Over the same period we received the cash proceeds of direct
sales made by the Reconstruction Finance Corporation of surplus property
amounting to about $73,000,000.
The activities of the War Damage Corporation, a subsidiary of the
Reconstruction Finance Corporation, were so curtailed during 194-6 that the
section of the R. F. C. Custody Department established to handle this opera
tion was abolished.
The volume of our operations as fiscal agent for the Commodity
Credit Corporation remained constant throughout the year but the volume of
our operations as fiscal agent for the Reconstruction Finance Corporation
decreased somewhat.
United Nations Deposit Account
In March 1946, we opened a deposit account for the United Nations
at the request of, and as fiscal agent of, the United States Treasury.
This
account is used as a depository for contributions to the organization's work
ing fund received from member nations.
The funds are transferred as needed
to a local commercial bank and withdrawn from that bank to meet expenses.
The account is maintained without charge.
Foreign Funds Control
The Treasury Department has made considerable progress during the
year in lifting the blocking controls on the use of property owned by certain
foreign countries and their nationals imposed under Executive Order No. 8389,
as amended.
Notwithstanding this, our work in Foreign Funds Control has not
declined materially because of the transfer to us during the year of the
Foreign Funds Control functions of five other Federal Reserve Banks, namely,
1 - 7
Boston, Philadelphia, Cleveland, Richmond and Atlanta.
Arrangements have now
been made to concentrate all field operations of Foreign Funds Control at
this bank commencing January 1, 1947.
OPEN MARKET OPERATIONS
The Federal Reserve Bank of New York, as agent for and under the
general direction of the Federal Open Market Committee, operates the System
Open Market Account in which the resources of the twelve Federal Reserve Banks
are pooled for the purpose of conducting open market operations in United
States Government securities.
Open market operations were the principal means of effectuating the
wartime policy of (1) providing commercial banks with sufficient reserves to
enable them to act as residual buyers of United States Government securities,
and (2) maintaining stability, or a fixed "pattern of rates", in the Govern
ment security market.
Although acceptable during the period of war financing,
this policy, which largely or wholly deprived the Federal Reserve System of
the initiative with respect to the supply of credit, has become inappropriate
in a postwar climate of strong inflationary pressures.
Its timely abandon
ment has been advocated by this bank.
During 1946, open market operations made what contribution they
could, under existing commitments, in the implementation of a credit and debt
management policy designed to exercise some restraint upon increases in the
supply of credit.
The policy was made effective largely through a program
of public debt retirement ox issues held by the banking system.
The elimina
tion by the Federal Reserve Banks of the preferential discount rate of 1/2
of
on loans to member banks secured by United. States Government securi
ties due or callable ■■•ithin one year, was also a part of the program.
Open
market operations were chiefly compensatory, affecting changes in the avail
ability of reserve funds due to other causes.
1 - 8
Large sales of United States Government securities by the Federal
Reserve System during the early part of 1946 were effective in absorbing
reserve funds made available to commercial banks as the result of a decline
in Treasury balances at the Federal Reserve Banks, a return flow of currency
from circulation, and an increase in gold stock.
Later in the year extensive
purchases of United States Government securities were forced by the strain
on bank reserves resulting from the Treasury's debt retirement program (which
drew funds from commercial banks to redeem Government securities held in part
by the Federal Reserve System), expansion of currency in circulation, and an
increase in private deposits.
Total holdings of Government securities at all the Federal Reserve
Banks amounted to $23.3 billion at the end of 1946, as compared with $24.2
billion at the end of 1945.
The net change was the result of declines of
$2.3 billion in certificates of indebtedness and 0.90% Treasury notes and
$0.5 billion in other Treasury notes and bonds, and an increase of $1.9 bil
lion in Treasury bills.
During the year, under the direction of the Federal
Open Market Committee, we purchased in the open market, for the twelve Federal
Reserve Banks, securities having a total face value of over $40.9 billion -and
sold or presented for payment securities having a face value of $41.9 billion.
The face amount of Treasury bills purchased by us for our own account, pur
suant to the 3/8$ buying rate and repurchase option established in 1942,
amounted to $30.4 billion, while bills amounting to $30.2 billion were sold
or presented at maturity for payment.
As agent for member banks, foreign correspondents and other Federal
Reserve Banks for account of their member banks, and as fiscal agent of the
United States Treasury, we purchased $1 billion and sold ?1.1 billion total
amount of securities.
1 - 9
CREDIT AND DISCOUNT OPERATIONS
Loans to Member Banks
During the year 194-6, 299 member banks obtained advances from us,
all secured by Government obligations, as compared with 261 in the previous
year.
The amount of borrowings was reduced to approximately $8.5 billion,
however, from ¿20.6 billion in 1945.
The curtailment in borrowings followed
the elimination on April 25, 1946, of the l/2fb preferential discount rate on
advances secured by short term obligations of the United States, which had
been established to facilitate war financing operations.
1946, 193 banks had borrowed ¿6.7 billion,
Prior to April 25,
while during the rest of the year,
106 banks borrowed ¿1.8 billion.
Consumer Credit Control (Regulation W)
A system-wide review of the enforcement aspects of Regulation W was
made in April 1946.
Thereafter, we intensified our enforcement activities.
As a consequence, during 1946 we examined credit records of 3,743 individuals
and concerns whose activities were subject to the Regulation, against 2,413
examined in 1945.
During the last quarter of 1946, the number of examinations
per month made by our staff averaged 427, as compared with 285 during the same
period of 1945.
We have continued our policy of non-punitive disciplinary
action to the fullest extent possible and have endeavored to obtain compliance
by persuasion and education as to the purpose of the Regulation and its rela
tion to the public welfare.
It has not been necessary to suspend or revoke
any license in the Second Federal Reserve District.
As of December 1, 1946, Regulation W was revised and simplified and
its restrictions were limited to instalment transactions.
The number of cate
gories of consumers' articles to which the Regulation applied was reduced from
36 to 12, and the current provisions are applicable to a moderately smaller
number of registrants.
Some of the classes of registrants in which there was
1-10
a large proportion of violators are no longer subject to the Regulation.
The over-all result has been to make the administration of the Regulation
somewhat less complex than heretofore, while not necessarily interfering
with its role as an aid to general credit control.
Loans to Industry
After a lapse of several years during which no applications were
received for loans to industry for working capital pursuant to Section 13b
of the Federal Reserve Act, there was some evidence of renewed interest in
such loans during the latter part of 194-6, but only one application was re
ceived up to the close of the year.
FOREIGN OPERATIONS
Foreign Accounts
Further progress was made during 1946 in the return of this bank's
foreign operations to a peacetime pattern.
This was reflected in the re
opening of a number of central bank accounts xvhich had been closed or had
become dormant during the war, as well as the opening of several new central
bank accounts.
Accounts for the central banks of Canada, England, and Norway were
reopened during the year, and the wartime government accounts of these coun
tries were closed.
The account of the central bank of Czechoslovakia, which
had been dormant throughout the war period, also was set in operation again.
The new central bank accounts established during the year include
the accounts of the recently organized Banco de Guatemala, the Reserve Bank
of India, the Bank of Siam, and the Central Corporation of Banking Companies
(Hungary)*.
An account, limited to the custody of gold, was also opened for
'"-Intended as an interim arrangement pending reopening of the account
of the central bank of Hungary.
1 - 1 1
Banco de Reservas de la República Dominicana.
At the close of the year
consideration was being given to the opening of an account for Banque d'Etat
du Maroc (in place of the account maintained for it by us as fiscal agent of
the United States).
Still dormant, partly for political and partly for other reasons,
are the accounts on our books of the central banks of Bulgaria, Hungary,
Rumania, and Yugoslavia and of the Government of Yugoslavia.
The account of
the Reichsbank has been vested by the Alien Property Custodian.
The accounts
of De Javasche Bank (Netherlands East Indies) and of the Governments of Estonia,
Latvia, and Lithuania are being operated on a limited basis by governmental
representatives in the United States.
There ivas a noticeable increase in the volume of operations handled
for foreign account.
Investment transactions, which showed a considerable
increase, included not only transactions in United States Government securi
ties, but also purchases for a number of foreign central banks of prime
endorsed bankers' acceptances.
These acceptances carry our guarantee of
payment at maturity, for which we charge a commission of 1/8%.
At
the end of the year we held a total of .$6.5 million of bankers' acceptances
purchased for foreign account; prior to October 19 46 no such acceptances had
been held since the lat+sr part of 1939.
In 1930, Jhe rotal amount of pur
chased acceptances held by us for foreign account reached a peak of $547
million.
Loans or Geld
There was a substantial increase during the year in both the number
and size of loans made by this bank against gold hold under earmark, in our
vaults. These loans, all of which carry an interest rate of 1% per annum
(our discount rate), were of a short term nature and were intended primarily
to cover temporary dollar deficiencies in connection with foreign countries'
1-12
trade with the United States.
The largest loan arrangement entered into
during 194-6 was with De Nederlandsche Bank; we agreed to lend up to '$135
million for periods of three months, with no loan to mature later than
April 15, 1947.
At the end of the year a total of -$147.3 million of foreign
loans on gold was outstanding, representing loans to 5 different central
banks.
In addition to gold-secured loans actually extended by the Federal
Reserve Bank, a variety of proposals was presented to us for foreign loans on
gold to be made by commercial banks against gold.
All of these proposals in
volved our processing, as fiscal agent of the United States, applications to
the Treasury for licenses which would permit the lending banks to acquire a,
pledge interest in gold which we hold in custody for foreign account.
As the
year closed, this bank, in conjunction with the Treasury Department and the
Board of Governors, was reviewing questions of policy so that consistent
treatment of loans on gold may be accorded to foreign countries seeking loans
and to domestic institutions which are attempting to consummate such loans.
International Bank and Fund
Pursuant to the Bretton ¿¡foods Agreements Act, this bank was appointed
depository of the International monetary Fund and of the International Bank
for Reconstruction and Development.
In this capacity, a considerable amount
of work was undertaken by the Foreign Function during 1946.
This was par
ticularly true with respect to the International Bank, for which two dollar
accounts and a gold custody account were opened to receive payments from
member countries on account of individual capital subscriptions.
Two security
custody accounts were also opened and general safekeeping services were ren
dered to the International Bank for its holdings of market issues of United
States Government securities, and for the United States Government non-negotiable demand notes which were issued in substitution for currency payments.
1 - 1 3
Our work as depository of the International Monetary Fund was less
active.
By the end of the year we had established a dollar account and a
gold custody account into which were received member payments for administra
tive expenses, as well as partial advance payments on account of individual
subscriptions.
In anticipation of the beginning of the Fund's exchange
operations, preparations were made for the opening of an additional dollar
account, the earmarking of sizable amounts of gold, and the safekeeping of
non-negotiable demand notes.
In addition to these services, our advice and assistance was sought
by both the International Bank and the Fund on many technical and general
problems in connection with the organization and initial activities of both
institutions.
Export-lmport Bank
In June 19-46, we were authorized by the Treasury Department to act
as fiscal agent in connection with a $200 million loan by the Export-lmport
Bank of Yiashington which that bank had previously granted to the Netherlands
Government.
Some 40 commercial banks had agreed to take over roughly one-half
of the total amount of the loan, and we, and other Federal Reserve Banks
through us, were authorized to make the necessary arrangements with the com
mercial. banks and the Export-lmport Bank.
loan had been utilized by the Netherlands.
By the end of 1946, 20% of this
The services rendered by our bank
in connection with the initial drawings against this loan consisted primarily
of arranging for the payments to be made by each commercial bank, and for the
delivery of promissory notes of the Netherlands Government against the pay
ments received.
Gold Movements
This country's net gain of gold from abroad, a movement which began
soon after V-J Day, continued uninterruptedly during 1946.
1 - 1 4
For the year as a
whole United States net acquisitions of for^ign-owned gold amounted to $711
million.
This net gain compared with a neb loss of about >450 million in
1945 and of $1.3 billion in 1944.
The year1s net gain arose both from the
purchase by the Treasury of gold which had been imported from abroad and the
net purchase of gold which was released from earmark at this bank:.
Gold held under earmark for foreign account was drawn down not only
by the sale of gold, but also by releases for export.
During the year the
total amount of gold so released and exported aggregated $273 million, of
which s,,196 million was shipped to Argentina , $55 million to China > and #20
million to Uruguay.
The total amount shipped, which was larger than in 1945*
brought to nearly ?1.5 billion the total of all gold exported since the move
ment began in 1943.
As a result of the release of gold from earmark either for sale or
export* gold held under earmark at this bank was reduced to a total of $3*623
million by the end 'of 1946.
This compared with the peak of >4*326 million
reached in March and with $4*294 million at the end of 1945.
Staff Group on Foreign Interests
An informal group of representatives of the Board of Governors of
the Federal Reserve System and the Federal Reserve Bank of New York was organ
ized in 1945 to consider matters connected with the foreign business of the
Reserve System and developments abroad of interest to the Reserve System.
Monthly meetings were held during 1946* alternating between Washington and
New York, which representatives of this bank and the Board1s staff and a rep
resentative of the Philadelphia Reserve Bank attended.
The members' of the
Staff Group benefited from the discussions of foreign subjects and the Group
prepared recommendations to the Policy Group (consisting of two members of
the Board of Governors and the President of the New York Reserve Bank) on
important questions.
1 - 15
Foreign Central Bank Visitors
A number of foreign central banks, whose program of sending offi
cers and other members of their staffs abroad for study, training, and observa
tion had been interrupted by the war, and several other central banks desirous
of initiating such program, made arrangements with us to receive their repre
sentatives.
As a result, during 194-6 one representative of Banque de France,
three from Commonwealth Bank of Australia, six from Bank Melli Iran, one from
Banco del Paraguay, and one from the central bank in process of organization
in the Dominican Republic made their headquarters at this bank for varying
periods and we arranged for them to study various activities of the bank and,
in some cases, of commercial and savings banks.
In addition to these visitors, there were opportunities to confer
here with senior officials ox foreign central banks during the past year, as
a result of the meetings of the governors and executive directors of the
International Monetary Fund and International Bank for Reconstruction and
Development, which took place in the United States during 1946.
Jiexico City Central Bank Conference
In August, Horace L. Sanford, Assistant Vice President, Foreign
Department, and Henry C. Wallich, Chief, Foreign Research Division, attended
the “
First meeting of Experts on Central Banking Problems of the American
Continent", which was sponsored by Banco de kexico.
Other members of the
Federal Reserve System delegation included two men from the staff of the
Board of Governors and a vice president of the Dallas Reserve Bank.
This
meeting, which was attended by representatives of the central banks (or govern
ments) of eighteen countries of the Americas, afforded an opportunity not only
to discuss central banking questions of common interest but also to become
acquainted with representatives of the other central banks of the ?/estern
Hemisphere.
A Permanent Committee 6f the Conference was established whose
1 - 1 6
function it is to facilitate the interchange of economic and banking statis
tics and information* and of personnel for training purposes among the central
banks of the Americas.
RESEARCH STUDIES AND BANK PUBLICATIONS
Our research studies during 1946 were concentrated largely on the
problems of reconversion of the domestic economy to a peacetime basis and of
the restoration of some measure of economic and financial stability abroad.
As a part of the domestic field of study, considerable attention
was devoted to the various aspects of management of the public debt and the
inter-relationships between fiscal and monetary policies.
The effects of the
Treasury's debt retirement program were studied, as well as postwar shifts in
bank deposits, savings bond sales, and currency circulation.
A major study
of the great wartime changes which occurred in commercial banking was under
taken, with the cooperation of the Banking and Credit Policy Committee of the
System’s research departments, and is now almost completed.
Close to 100
memoranda on domestic topics were prepared for distribution to officers and,
in some cases, to directors; in a few instances, copies were also made avail
able to the public upon request.
Over 100 articles were prepared for the
domestic section of our internal periodical, the Business and Financial
Summary, and 23 special articles on domestic economic developments or prob
lems (in addition to the regular articles on the money market and department
store trade) were publishgd in our Monthly Revieyf of Credit and Business
Conditions.
Some of the more important domestic research studies completed
during 194-6 are listed below:
Estimates of the Labor Force in 1950
Postwar Shifts in Bank Deposits
Debits and Clearings in New York City, 1919-4-5
The Problem of Bank-Held Government Debt
Federal Trust Fund Investments
Changes in "Real" Earnings since 1939
Port of New York
The Changing Significance of the Interest Rate.
1-17
Some of the domestic statistical work was improved and expanded,
notably in the field of retail trade, and a manual of merchandise classifica
tions in department stores, as well as other special material, was prepared
for System research committees.
Our index of wages was thoroughly revised
and a memorandum explaining the revision was prepared for internal and public
use.
Considerable work was done on a planned System revision of the weekly
reporting bank series.
The annual retail credit survey was carried out on a
wider scale than in the past, and we participated in a new System survey of
commercial and industrial loans.
In the foreign and international field, attention was devoted espe
cially to postwar exchange problems, the scope and methods of monetary reforms
abroad, the setting up of the World Fund and Bank, the progress of lending for
international reconstruction, and the effects of the rise in American prices
and wages on the international exchange rate structure and the foreign re
construction program.
Studies were made of the nationalization of central
and commercial banks in various countries, of the status of foreign branches
of American banks, and of the outlook for the world price of gold.
In all,
over 350 studies on foreign and international topics were prepared, and 13
articles on such topics were published in our Monthly Review.
Foreign and
international developments were regularly summarized and analyzed in the
Business and Financial Summary.
A plan for export credit information was brought to completion dur
ing the year and with the start of the new year it is expected that reports
will be obtained regularly from the New York banks financing international
trade and will be published in special releases or in our Monthly Review,
together with data on unfilled export orders which will soon be collected
by Dun and Bradstreet.
1 - 1 8
Among the most important memoranda on foreign and international
topics during 1946 were the following:
Exchange-Rate Policy of the International Fund
International Lending Since the End of the War
Recent Developments in Britain's International
Financial Position
Scaling Down of Britain's External Debts
France's Reconstruction Program
France1s Balance of Payments Problem and United
States Financial Aid
Monetary Reform in Liberated Europe
Central Banking in an Export Economy.
Members of our research staff took an active part in the work of
the various research committees of the System, including the Staff Group on
Foreign Interests.
Several o-f our economists also took part in technical
conferences or committee work outside the System, e.g., in connection with
the Government's financial negotiations with France, the Investment Bankers'
Association committee on securities of the International Bank, and the Exportlmport Bank's study of the feasibility of a system of export credit transfer
insurance.
Important public meetings of trade and research organizations dur
ing the year were covered and reported upon by members of our staff.
Foreign Missions
Four members of our research staff were absent on one or more for
eign missions during the year.
One served for five months as a financial
adviser to the Economic and Scientific Section of SCAP in Tokyo and then for
five months as Financial Adviser to the Executive Yuan in China.
Another was
away during the summer, first to continue last year's work on monetary reform
in the Dominican Republic, then to gather information in Cuba on that coun
try's central bank project, and finally to attend the Mexico City Central Bank
Conference.
A third economist made a brief visit to Ottawa to gather informa
tion on Canadian banking and economic problems.
Finally, on© of our econo
mists went to Austria in October for up to one year's service as chief of the
Taxation Section of the Military Government.
1 - 1 9
CHECK COLLECTIONS
One of the more important services rendered by the Federal Reserve
System on a nation-wide scale is the expeditious collection of checks for mem
ber and nonmember clearing banks.
The volume of commercial checks collected
by us has grown substantially in recent years.
In December 194-6, for example,
we collected 24.5 million such checks, which is 14$ or 3 million more than in
December 1945.
Officials of the bank and of the System, principally through the
Committee on Collections of the Presidents' Conference, are constantly study
ing methods to speed up the collection of checks and instruments of all kinds.
Several important steps, described below, are being taken to facilitate the
handling of the increasing volume of checks.
Speeding Collections by Air Freight
In June 1946, we began sending cash items in process of collection
to other Federal Reserve Banks and branches by air freight.
By combining
special pick-ups here in New York and special deliveries at destination with
the speed of air transit, we were able to develop a much faster collection
system which now enables us to present cash items in the next morning's
clearings as far west as Kansas City.
From the beginning, our shipments were combined with a number of
the larger sending banks in New York City.
200 pounds a night to Chicago alone.
Our initial shipments averaged
The method proved so satisfactory, on
an experimental basis, that we extended it and are now shipping nearly 1,000
pounds a night to 17 other B'ederal Reserve Banks and branches.
The service
is being expanded as fast as we can arrange for the necessary facilities.
The costs of air freight shipments are prorated to the participating
banks, including ourselves, in proporti.on to the weight of checks shipped by
each.
Including the extra charges for pick-up and delivery, they have averaged
1-20
about 30$ a pound as compared with 480 a pound for first-class mail and 800
a pound for air mail.
For most of these shipments, we are using a shipping
container designed to withstand the impact of a plane crash and any resultant
fire.
The results of the quicker collection of cash items, made possible
by the use of air freight, can best be illustrated by our shipments to Chicago
for the month of October,
Before we began using air freight our debit float
on Chicago averaged about $12,000,000 daily.
During October, notwithstanding
some delay due to weather conditions, our debit float on Chicago averaged
only $5,000,000 daily.
At the same time, by reducing availability deferment,
on Chicago city items, from two days to one, the participating banks obtained
an average of $14,000,000 a day in additional reserve balances.
On nearby points, such as Boston, no gain in day of presentation is
possible, but our shipments are delivered to the consignee Federal Reserve
Bank three or four hours earlier each morning, which assists it materially
in processing the items and clearing them through earlier exchanges.
Check Routing Symbol Plan
The Federal Reserve System and the American Bankers Association
continue jointly to sponsor a program calling for the use of a new uniformly
placed symbol on all checks and drafts, which will greatly facilitate the
sorting, collection and presentation of checks and drafts.
By vigorously
sponsoring the plan through visits to banks, posters and correspondence, as
well as indirectly through published articles, the routing symbol has been
adopted by 905, or 96$, of the 942 commercial banks in our district according
to a survey made at the end of September 1946.
wide ratio of 75$.
This compared with a nation
The volume of checks bearing the symbol has also increased.
During November approximately 30$ of the checks going through our Check
Department bore the symbol.
This percentage was somewhat above the nation
wide average for the corresponding period.
1 - 2 1
Change in Operating Procedure
Since 1940 we have been experimenting with the use of punch card
equipment in the collection of checks.
This system, which has been given
careful consideration by us and by the engineers of the International Business
Machines Corporation, has been found to be unsatisfactory both from the stand
point of cost and the quality of the service rendered by us to our member
banks.
We plan, therefore, to revert to the use of adding machines in the
preparation of cash letters as soon as the equipment is available.
The ex
periment has been a costly one, but we still feel justified in having under
taken it.
The Federal Reserve Banks have a responsibility to pioneer new
methods and equipment in the field in which they operate and this Yri.ll always
involve some costly failures.
We can only be blamed if our initial surveys
of possibilities are not thorough and able or if we do not drop new processes
or equipment as quickly as they have failed to demonstrate their usefulness
and efficiency.
Decrease in Government Checks
An important development in 1946 was the marked decrease from 1945
of about 49 million (approximately 45$) in the number of Government checks
which we handled, and a correlative reduction in the personnel assigned to
this operation.
This reduction was directly attributable to the substantial
number of men released from the Armed Forces and the continued curtailment of
civilian employment by the Government in late 1945 and during 1946.
BANK SUPERVISION AND RELATIONS
Membership
Five banks in this district were admitted to membership in the
Federal Reserve System during the year.
At the end of the year there were
259 State member banks and trust companies, as compared vrith 124 nonmember
State banks and trust companies in this district.
1-22
Nearly 87% of all the
commercial banks (national banks and State banks and trust companies) in the
district were members of the System, and about 68/» of all State banks and
trust companies in the district were members.
Farm Credit File
We have continued the distribution and servicing of the Farm Credit
File which was undertaken in November 1945 at the request of the New York State
Bankers Association.
We felt that sponsorship of the file would afford u» an
opportunity to assist the smaller banks of the district in their function of
servicing agriculture.
At the year end, 202 banks, approximately 45% of the
banks operating in farm areas of the district, were using the file in whole
or in part.
PERSONNEL
At the close of 1946, the number of employees in our head office was
4,142, slightly less than at the 1945 year end, and approximately 14.4% below
the peak of 4,737 reached in July 1944.
Declining activity of certain depart
ments of the bank, principally those performing fiscal agency operations, will
result in a greater decrease in personnel during 1947.
Turnover in 1946 was
26.24% compared with 26.09$ in 1945 and 31.25^ in 1944.
Returning Veterans
During the war period, 824. of our employees left the bank to enter
military service (including the Merchant Marine).
By the end of 1946, 540 of
these employees were reemployed, and 421 of them are still in our employ.
believe there are only 29 yet to be heard from.
We
During 1946, 277 returned
service mon and women were reinstated in their former positions or in higher
job classifications, at salaries approximating those which they might reason
ably have expected had they been on the bank's payroll during the period of
their military service.
There are still in our employ 218 of these 277.
1 - 2 3
Salari&s
Two important changes in the salary program were made during 1946,
in view of economic conditions:
(1) effective January 1, supplemental com
pensation, which was at the rate of 15% of the first $3,000 of basic annual
salary, was made permanent by including it in annual salary; and, in addition,
the salary of each employee was increased by an amount equal to 10% of his
basic annual salary as of December 31, 194-5, and (2) effective October 1, the
salary of each employee was increased by 10%.
Payroll Deductions for Series E Savings Bonds
Following the general salary increase in October a campaign was under
taken to increase the participation of employees in the payroll deduction plan
for the purchase of Series E Savings Bonds,
As a result 319 new participants
were obtained and 444 employees increased their deductions.
Employee Training Program
During 19+6, Job Relations Training Classes were attended by 56
head office employees and Job Instruction Training Classes were attended by
75 head office employees.
Music
During 1946, our use of “
Muzak" was extended to certain sections of
the Accounting Department and to the R. F. C. Custody Department.
It is now
installed in the following divisions employing a total of 1,420 peoplei
Transit, Card Check, Treasury Check, Clearings, Redemption, R, F. C. Custody
(95 Maiden Lane), Accounting and Tabulating,
The Federal Reserve Club
The Club has continued to function in the interests of the employees.
Previous activities along educational, athletic, social and thrift lines have
been carried on, the scope of many has been widened, and development of addi
tional athletic sports has been fostered.
1 - 2 4
In 1946 innovations, namely, a
beach party, an outing at Steeplechase Park, a noontime dance, a fashion show
with our own girls acting as models, a dressmaking class and an afternoon tea
dance and bridge, were arranged by the Club, and in every case were enthusias
tically patronized.
The ending of the war also made possible again the presen
tation by the Club of a musical and dramatic revue.
At the request of the Bank, the Club conducted a canvass of the em
ployees ?ihen the Blue Cross Hospital Plan and the Doctors' Plan were made
available to them.
About 86% of the employees eventually joined (they pay 1/3
of the cost and the bank pays 2/3) and, counting dependents, over 7,000 per
sons became eligible for the benefits.
BUFFALO BRANCH OPERATIONS
The Buffalo Branch, whibh directly serves the ten westerly counties
of New York State, including the cities of Buffalo and Rochester, renders most
of the services rendered by the Head Office.
It provides, for the banks lo
cated within its territory, all such services that are needed by those banks,
and that can be effectively and efficiently provided.
Significant develop
ments in relation to the operations of the Branch during 194-6 are indicated
below.
In recent years we have also begun to use the Branch as a training
and proving ground for executive personnel.
Amendment of Branch By-laws
During the year the Board of Governors amended its Regulations re
lating to branches of Federal Reserve Banks so as to give effect to a System
policy that the chief executive officers at Federal Reserve Bank branches
should not be members of branch boards of directors.
An amendment to the by
laws of the Buffalo Branch, effective January 1, 194-7, implements the Board's
amended Regulations and provides for a change in the title of the chief execu
tive officer at the Branch from Managing Director to General Manager.
1-25
Because
the General Manager is no longer on the branch board, all of the four branch
directors appointed by this bank (instead of three as formerly) are now ap
pointed for three-year terms.
At present, all four are executive officers
of member banks within the branch territory.
Savings Bond Redemption Division
Two representatives of the Treasury Department assisted in the in
stallation of a new procedure in our Savings Bond Redemption Division during
October.
This system, which is gradually being installed in all Federal
Reserve Banks and Branches, is designed to provide uniformity of methods and
to permit more rapid recordings of redemptions by the United States Treasury
Department.
R. F. C. Division Operations
It was necessary to increase the personnel assigned to the
Reconstruction Finance Corporation Division during the year due to various
changes in the character of this work following V-J Day in 1945, the full im
pact of which was felt in 1946.
Regulation W - Consumer Credit
Regulation W enforcement activities of the Branch were greatly ac
celerated during the year.
As a result, approximately 25% of all registrants
in the branch territory were examined.
This exceeded by a wide margin the
number of investigations made during the previous two years and was in line
with the program adopted by the Head Office, whereby a minimum of 20% of all
registrants were scheduled to be examined during the year.
As a result of the
revision of Regulation W, effective December 1, however, the investigation
work has been sharply reduced.
Check Routing Symbol
The check routing symbol program has received the enthusiastic co
operation of the banks in the Buffalo Branch territory.
1 - 2 6
Several banks in the
area have informed us that the sorting of checks prior to the preparation of
cash letters containing outgoing items will be done entirely by symbol when a
sufficient percentage of individual items has been revised to include the
symbol.
The fact that this point is approaching is demonstrated by a recent
survey of checks dravm on banks in the Buffalo area.
This survey indicated
that over 26% of all checks now carry the symbol correctly located.
Not only have checks been rearranged to provide for the routing
symbol, but through conversations with individuals and officers of banks and
corporafeions using specially prepared checks, many objectionable check forms
have been eliminated.
Bank Relations
During the year the total number of banks in the Buffalo Branch
territory was reduced from 117 to 112 by the merger of independent banks into
metropolitan institutions.
Branch offices are now operated in each instance.
Two banks in the territory were admitted to membership in the Federal Reserve
System during the year, making a total of 71 members or nearly 69% of the
total number of all national banks and State banks and trust companies in
the branch territory.
Personnel
The number of employees at the Branch declined in 1946 from 221 to
213 due in part to decreased activities in certain fiscal agency functions.
In October, 2 classes of 10 employees each were instructed in Job
Instruction Training by a member of the New lork staff, and refresher courses
were given to approximately 30 employees.
In addition, films were shown to
nearly all the employees, demonstrating the costliness of errors and careless
ness both in training and performance.
All but one of the employees at the Branch enrolled in the Blue
Cross and Blue Shield plans for hospitalization and surgical benefits, and 166,
1-27
or 78/0, of the employees participate in the Group Life Insurance deduction
plan.
Following the general salary increase in October an effort was made
to increase the participation of employees in the payroll deduction plan for
the purchase of Series £ Savings Bonds.
ductions.
As a result 140 increased their de
The Branch continues to show 100% participation in this plan.
Results from the installation of "kuzak" in one of our divisions in
December 1945 have been entirely satisfactory.
This service has now been
extended to the Redemption, Check and Cash (noney Counting Unit) Divisions
with a total of 106 employees.
1 - 2 8
FEDERAL RESERVE BANK OF NEW YORK
President's Report to Directors for 194-6
PAR.T 2
STATISTICAL SUMMARY OF PRINCIPAL OPERATIONS OF THE BANK
AND THE BUFFALO BRANCH
Page
Accounting,, Planning and S e r v i c e ...............................2 -
2
Bank Supervision and Bank R e l a t i o n s ..........................
5
Cash and C o l l e c t i o n s ............................................
7
F o r e i g n .................................................. ..
11
......... . . . . . . . . . .
15
Loans, Credits and R. F. C. C u s t o d y ..........................
19
Government Bond and Safekeeping
Open Market Operations, Treasury Issues,
and Margin Regulations .....................................
.
22
P e r s o n n e l ......................................................
24-
Buffalo B r a n c h ..................................................
26
(Officers named under each function are those in charge March 1947)
2-1
PART 2
STATISTICAL SUMMARY
STATISTICAL SUMMARY OF PRINCIPAL OPERATIONS
OF THE BANK BY DEPARTMENTS
ACCOUNTING, PLANNING AND SERVICE
Officers in charge:
Herbert H. Kimball, Vice President
Otto W. Ten Eyck, Assistant Vice President
Spencer S. Marsh, Jr., Manager, Accounting Department
James J. Carroll, Manager, Planning Department
Harold M. Wessel, Manager, Planning Department
ACCOUNTING DEPARTMENT
Accounting Division
Entries posted to reserve, and
nonmember clearing accounts
Penalties assessed for reserve
deficiencies
Transactions with other Federal
Reserve Banks
Disbursing Division
Employee compensation
payments, including
overtime
Checks cashed for employees
(approximate)
Petty cash payments
(approximate)
Checks drawn other than
pay checks
Claims for reimbursement of
Fiscal Agency expenses
______
Number
171,369
32,000
1945
1946
4,075,272
4,145,878
177
216
4,197,248
3,892,335
1945_________ __ __________ 1946_________
Amount
Number
Amount
(000 Omitted)
(000 Omitted)
$9,691
156,400
29,000
-
$11,576
-
12,000
145
9,000
204
9,336
5,491
8,742
6,449
429
5,303
405
4,310
2 - 2
PART 2
STATISTICAL 61M.ARY
Tabulating Division
1946
1945
(Approximate N o .)
165,000
155,000
Receipts for compensation paid employees
Advices of immediate and deferred credits
to banks arising from check clearings
Cards punched incident to maintenance of
records of this bank's expenses
"Ins and outs" affecting punch card records
of securities held in safekeeping
Coupon-cutting requisitions covering se
curities held in safekeeping
Withheld Taxes Division
Number
Depositary receipts and
withheld taxes received
from banks#
Depositary receipts re
ceived from Collectors
of Internal Revenue
Largest number of receipts
received from any one
bank (Manufacturers
Trust Company)
Duplicate receipts issued
to replace originals
lost by employers
500,000
125,000
125,000
225,000
225,000
170,000
170,000
1945
Amount
(000 Omitted)
Number
1946
Amount
(000 Omitted)
780,468
$1,727,173
823,777
31,5/7,591
768,885
1,714,147
808,586
1,539,818
120,203
174,066
123,912
177,566
3,971
*915 qualified depositaries in 1945; 896 in 1946.
440,000
2 - 3
3,752
PART 2
STATISTICAL dlMdtflY
Meals served in cafeteria
Daily average
Meals served in dining room
Daily average
_______ 194-5________
Number R eceipts
702,013
204,870
2,324
669
14,694
15,490
48
50
SERVICE DEPARTMENT
Food Supply Division
Number
782,640*
2,736
13,018*
46
194-6________
Receipts
>238,480
833
12,557
44
*0n account of the Saturday closing of the bank: during the period June 1
to September 30, 1946, no lunches were served on Saturdays during that
period except on Saturday, June 29, luncheon was served in the Cafeteria
in connection with the examination by examiners of the Board of Governors,
Post Office Division
Registered Mail
Incoming
Outgoing
Ordinary Mail
Incoming
Outgoing
_____ 1945_____
Pieces handled
_____ 1946
Pieces handled
371,976
360,942
272,728
272,927
7,770,501
4,013,691
6,7 50,097
2,831,500
The decrease in the number of pieces of mail handled was due primarily
to fewer transactions in United States Savings Bonds.
Telephone Section
1945
1,141,386
Number of calls handled
1946
1,091,912
BUILDING OPERATING
Power Plant Division
Total amount of steam used
(a) For generating
electricity
(b) Air Conditioning
turbines, heating and
other purposes
Electric current generated
(a) Used for lighting
(b) Used for pov/er
Lbs.
1945
206,820,000
1946
194,282,000
“
199,962,600
188,861,330
11
6,857,400
5,420,700
5,568,930
2,495,560
3,073,370
5,453,270
2,488,580
2,964,690
KW Hrs.
"
"
Pounds of steam required to
generate one KWH of current
35.91
2 - 4
34.63
PART 2
STATISTICAL SUMMARY
BANK SUPERVISION AMD BANK RELATIONS
Officers in charge:
Reginald B. Wiltse, Vice President
William F. Sheehan, Chief Examiner
Franklin E. Peterson, Manager, Bank Relations Department
BANK EXAMINATIONS DEPARTMENT
Bank Examinations
Regular Examinations :
Jointly with New York State Examiners
Jointly wi'oh New Jersey State Examiners
Jointly with Connecticut State Examiners
Independently
For Membership:
Jointly with New York State Examiners
Jointly with New Jersey State Examiners
Independently
Total
1945
192
65
6
263
1
2
1946
184
60
6
1
251
2
3
3
555
5
Trust Department Examinations
Regular Examinations:
Jointly with New York State Examiners
35
Jointly with New Jersey State Examiners
12
Jointly with Connecticut State Examiners
3
Independently
126*
For Membership:
Jointly with New Jersey State Examiners
Independently
Total
1
1
176
__2
17
11
1
139**
168
__2
T O 170
2
During 1946, all State member banks and their trust departments, with
the exception of seven located in the State of New Jersey, were examined once.
The State Examiners were not able to examine these seven New Jersey banks in 1946
but the banks have been scheduled for examination early in 1947« In the circum
stances, we did not feel it necessary to make independent examinations of the
seven banks in 1946* Five State member banks were admitted to membership in 1946
compared with six in 1945* Two applications for membership were in process on
December 31, 1946, compared with two on December 31, 1945*
*Includes
extent
**Includes
extent
29
of
19
of
examinations
checking the
examinations
checking the
in which the State Examiners
securities to the records of
in which the State Examiners
securities to the records of
2 - 5
participated to the
the trust department.
participated to the
the trust department»
PART 2
STATISTICAL SUMJAHÏ
BANK RELATIONS DEPARTMENT
During 194-6, visits were made to 1,608 banks, as compared with 1,082
in 194-5» Officers of the bank visited 367 member banks and 127 nonmember
institutions, as compared with 187 and 62, respectively, in 194-5»
Special representatives made 94-0 visits to member banks and 174- to
nonmember banks, as compared with 711 and 12.2, respectively, in 194-5Officers and members of the staff attended 202 meetings, as compared
with 130 in 194-5, and addresses were made before bankers’associations, trade
organizations, clubs, and various other groups, as follows:
1945
1946
Treasury Financing
Federal Reserve System
Farm Credit File
Check Routing Symbol
Other banking subjects
5
1
1
2
_6
7
8
10
3
11
Total
15
39
Subject
During the war period up to V-J Day the number of visitors to the bank
declined substantially from about 3,000 to fewer than 500 persons per year.
Since that time the number has increased. Our banking premises were shovm to
1,4-52 visitors on 212 separately conducted tours during 194-6, as compared with
559 visitors and I64 tours during 194-5*
2 - 6
PART 2
STATISTICAL SUMMARY
CASH AND COLLECTIONS
Officers in charge:
Valentine 'Tillis, Vice President
Harold A. Bilby, Assistant Vice President
Felix T. Davis, Assistant Vice President
Paul R. Fitehen, Manager, Cash Custody Department
Michael J. McLaughlin, Manager, Collection Department
Ralph W. Scheffer, Manager, Check Department
Roy E. Wendell, Manager, Cash Department> and Manager,
Government Check Department
CASH DEPARTMENT
Receiving Division
Number of
Deposits
Received over counter Checks
Currency
Currency received by mail
Currency received by express
43,562
62,/+l2
38,344
15,295
Sorting and Counting Division
Amount___
( Ô 0 0 Omitted)
$30,431,180
3,621,375
1,049,730
66,273
Number of
Deposits
______ 1945
Number of Pieces Counted:
l's
2»s
5's
10's
20»s
50's
100's
500's
1000's
5000's
10000ls
374,522,533
9,701,873
142,696,455
184,412,818
39,896,685
4,960,634
5,336,031
172,745
132,536
476
Currency sorted as unfit:
Number of Pieces
Value
Errors found in deposits of
currency
Counterfeits detected
U. S. currency received as
under General Ruling No.
Separate lots
Value
1946
1945
2 - 7
32,493
62,545
43,325
17,056
Amount
(GOO Omitted)
$37,516,171
3 826,181
1,267,658
75,155
,
______ 1946
418,474,420
8,349,948
160,977,203
226,302,106
54,117,270
5,010,461
2,934,214
78,826
58,150
222
5,149
548
762,337,935
¿76,303,368
231,082,412
$840,252,404
266,590,405
^892,769,486
12,527
295
fiscal agent
5:
441
$1,671,743
15,333
203
817
16,110,883
PART 2
STATISTICAL SUMMARY
Paying Division
_________ 1945________________________1946__________
Number
Amount
Number_______ Amount
TOOO Omitted)
(000 Omitted)
Payments of currency to:
Individuals and Govern
ment Officers
Banks over the counter
Banks by mail
Cash payments of Govern
ment coupons
Federal Reserve notes
shipped to banks in
Boston and Philadelphia
districts
98,490
39i385
87,149
$
114*845_______ 89,177
4,030,850
43,087
877,968
90,923
532
19
16,896,072
185,867
I
121,161
4,224,491
923,076
589____________26
21,331,667
228,615
Coin and Bullion Division
Coin handled:
1945
1946
Amount
Received-"-"-”
$152,24^,253
189,330,590
1945
1946
Amount
Paid Out
fl5r,84b,5S3
188,395,544
Pieces
Received#
2,W f , 153,947
2,581,280,414
Pieces
Paid Out
27237,916,338
2,568,288,246
Pieces
Counted#
1,491,254,000
1,824,030,200
Amount
Wrapped-"-#
1 13,517,000
17,160,050
#The difference between Pieces Received and Pieces Counted is due
to the fact that (1) new coin received from the Fint is not
counted, and (2) certain coin is deposited under special arrange
ments for the account of certain member banks pursuant to which
some or all of the coin is paid out to such banks the following
day without being counted by u s .
##This coin was wrapped in accordance with our practice of furnish
ing the smaller out-of-town banks with a limited amount of
wrapped coin.
-"-x-:i-The amount received includes new coin received from the Mint and
silver dollars received from the Assay Office as follows:
Cents
Nickels
Dimes
Quarters
Halves
Dollars
1945
I 2,000,000
900,000
1,700,000
5,000,000
600,000
1946
$ 2,000,000
1,800,000
5,000,000
2,700,000
-
940,000
1 1 1 ,140,000
$ 1 1 ,900,000
2 - 8
400,000
PART 2
STATISTICAL SUT.5MRY
CASH CUSTODY DEPARTMENT
Currency* coin and earmarked gold are held in the vaults under control
of this department. Earmarked gold transactions during 1946 compared with 1945
were as follows:
Received for earmark:
Bars
Bags of coin
Released from earmark:
Bars
Bags of coin
Gold held under earmark
at year end:
Bars
Bags of coin
1945
Number Value
(000 OmittedJ
64,675
$ 937,861
5
”
_____ 1946 _________
Number
Value
(000 Omitted)
13*079
$ 183*815
“
~
36*768
313
513*243
2,321
24*984
209
353*506
1*512
302,266
13*119
4,276,202
89,030
290,361
12*910
4,106,511
87,518
CHECK DEPARTMENT
The following table shows the number of items handled in the Check
Department in 1945 and 1946:
Clearings Division
Transit Division
Return Items Division*
94,327,^37
1945
110, 5^6,017
135,405,453
1,572,034
1946
168,917,001
1,890,676
#0n March 16, 1946* the City Collection Section of the City Collection
and Return Items Division was transferred to the Country Collection
Division, Collection Department, and the name of the first Division
was changed to Return Items Division.
COLLECTION DEPARTMENT
Noncash items handled for collection
(a) Country Collection Division
#City Collection Section
(b) Coupon Collection Division
Peak days - January 2, 1945?
January 2, 1946
Government coupons paid
Peak days - December 15, 1945;
December 16, 1946
Wire Transfers of funds
Number
Value (000 Omitted)
“
■See footnote under Check Department.
2 - 9
1945
1946
414,286
25,163
601,356
451,837
20,290
6,473,837
16,818
7,262,390
821,151
1,070,358
166,389
$77,468,401
187,528
190,786,525
32,686
544,249
PART 2
STATISTICAL SUMMARY
GOVERNMENT CHECK DEPARTMENT
Treasury "paper" checks handled
for collection
Punch-card checks payable
"through" this bank:
(a) Dependency Benefit checks
(b) Brooklyn Navy Yard checks
(c) Regional Disbursing Officer
checks
(d) Terminal Leave checks
Punch-card checks payable "through"
other Federal Reserve Banks
Number of ration checks handled
Number
14,346
123,104,310
10,167
52,160
3,272
3,237,196
271,203
14,166
1,697
881,934
138,123
13,716
—
3,014,637
—
20,505
278
3,617,361
3,973
18,265
2,391,695
11,685
1,947,465
101,759
$32,019,041
58,498
5,925
653
Treasury "paper" checks handled
Peak day: December 14, 1945, 99,734 - January 4, 1946, 83,022
Card Checks handled
Peak day: February 13, 1945, 989,500 - February 13, 1946, 424,240
1946
Amount
O
O
O
1945
Amount
Number
(0Ô0 Omitted)
-x- * * * -x- #
2-10
PART 2
STATISTICAL SUMMARY
FOREIGN
Officers in charge;
L. Werner Knoke, Vice President
Norman P. Davis, Assistant Vice President
Horace L. Sanford, Assistant Vice President
Peter P. Iang, Manager, Foreign Department
Walter H. Rozell, Jr., Manager, Foreign Department
FOREIGN DEPARTMENT
Foreign Operations Division
Foreign Accounts Section
December 31, 1945
Amount
Number
section 14(e) of the Federal
TÜÔ0 Omitted}"
Reserve Act:
Dollar
$ 822,039
54
Earmarked gold
40
3,640,017
Foreign account
1
Domestic account
102,814
Security custody
16
U. S. securities
1,484,004
Bankers Acceptances (Guaranteed)
21,161
All other
2
Foreign currency held
104
Total
Volume of transactions
in such accounts
Dollar payments and receipts
Items received for collection
Gold earmarked and released
Transfers between earmarked
gold accounts
Direct sales of imported gold
Foreign loans on gold
Receipts and deliveries of
securities and bills
Applications for Foreign
Funds Control licenses
Reports to Foreign Funds
Control of transactions
effected
Total
December 31, 1946
Amount
Number
(000 Omitted)
$ 484,490
57
3,286,361
-
43
20
859,450
6,547
23,174
86
3
$4,660,108
$6,070,139
Transac
tions
1946
1945
Amount
TÔÔ0 Omitted)
43,712(r) '5 6,788,946 (r)
32,471(r)
679,026(r)
1,081,346
237
21*
5
4**
1,065
475
310
78,300
76,207*
48,300
57,000**
8,384,457
f 17,115,282
Transac tions
53*937
57,860
143
18*
45
21-“
-*
1,284
262
240
113,810
Amount
(Ô00 Omitted)
$11,886,737
359,402
908,983
81,649*
463,814
486,100**
9,695,627
$23,88*2,312
(r) Revised
'«Excluding certain special transfers between accounts maintained for the
same foreign country.
♦ -“Including renewals or replacements.
2 - 1 1
PART 2
STATISTICAL SUMMARY
December 31 > 194-5
Number
Amount
(OOO Omitted)
December 31, 194-6
Number
Amount
(OOO Omitted)
International Bank and
International Monetary Fund
Accounts held under Section 6
of the Bretton Woods
Agreements Act
Dollar
Earmarked gold
Security custody
Uf S. securities
~
-
2
2
$ 10,606
5,874
-
1
395,585
5
$412,065
-
Total
1946
194-5
Volume of transactions
in such accounts
Transactions
Dollar payments and receipts
Items received for collection
Gold earmarked and released
Receipts and deliveries of
secxirities and notes
Amount
(GOO Omitted)
Transac
tions
193
8
12
_
-
-
Total
Amount
(000 Omitted)
$245,935
378
28,645
23
395,585
236
1670,543
Foreign Exchange Section
Foreign Accounts held as
Fiscal Agent of the United States
Dollar
Earmarked gold
Security custody
U. S. securities
December 31, 1945
Number
Amount
("OOO Omitted)
7
§ 38 >960
4
550,993
1
Total
169,977
$759,930
2-12
December 31, 1946
Number
Amount
(OOO Omitted)
7
$ 23,251
536,171
41
110,000
$669,422
PART 2
STATISTICAL SIWARY
Volume of Transactions
Bank Functions
Foreign exchange and
related transactions
effected for foreign
correspondents and
member banks
__________ 1945________
Transactions
A m o u n t __
(000 Omitted)
___________________________ 1 9 4 6 ______________________
Transactions_____ Amount
(000 Omitted)
6,257
555
47
167
887,323
873,7^6
59
46
501,360
322,464
666
108,922
700
65,430
Foreign accounts held
as fiscal agent
(a) Gold earmarks and
releases
60
(b) Security custody
(c) Dollar receipts, disbursements and collections
693
430,788
11
8
94,771
399,931
887,986
602
380,703
Fiscal Agency Functions
Stabilization Fund ~
(a) Gold purchased
(b) Gold sold
(c) Foreign exchange
purchased and sold
487
$
$
37,376
Drafts, cable transfers
and payments for account
of Treasurer
2,209
530,646
2,007
1,111,707
Interdistrict Settlement
Fund
20
555,000
2
50,000
Deposits and withdrawals of
gold held for Treasurer of
U. S. and various Government
agencies
17
365,077
4
140,666
Drafts, checks, etc., im
pounded and released under
General Ruling No. 5A
3,804
3,077
Affidavits on imported
fine gold bars
____ 2
41,308
___27
194,301
Total
8,172
$4*690,150
4,021
$3,298,709
2 - 1 3
PART 2
STATISTICAL SUHMAJRY
Reports and Analysis Division
Number of exchange rates certified
Number of reports tabulated#
# Exclusive of special studies
and reports.
Cable Division
Number of cablegrams and
radiograms handled
1946
1945
13*834
FOREIGN FUNDS CONTROL DEPARTMENT
Number of license applications received
Daily average of same
Licenses issued
Letters written
Miscellaneous reports received
Personal interviews
Telephone inquiries
1946
9*002
11,539
1945
1,212
11,174
2 - 14
16,483
1945
8’
3 *716
277
58,758
53*711
51*908
8*587
28,165
1946
717174
236
51*194
54*714
10*315
7*619
31*830
PART 2
STATISTICAL S IM M Y
GOVERNMENT BOHD AND SAFEKEEPING
Officers in charge:
Arthur Phelan, Vice President
John H. Wurts, Assistant Vice President
William F. Abrahams, Manager, Security Custody Department
Harry M. Boyd, Manager, Safekeeping Department
Yiesley W. Burt.. Manager, Savings Bond Redemption Department
Marcus A. Harris, Manager, Qovernment Bond Department
GOVERNMENT BOND DEPARTMENT
Number of Pieces Handled
1945
1945
United States Savings Bonds
Deliveries to agents on
29,552,266
consignment
Payments and stubs re
ceived from agents
29,461,387
1,442,756
Direct Sales
Reissues and corrections
319,943
War Savings Stamps
Sales and redemptions
7,159#
All Other Government Issues
1,084,800
Payments for new issues
Denominational exchanges
866,166
and wire transfers
Redemptions, transfers and[
exchanges of registered
securities
140,901
Redemptions and exchanges
of bearer securities and[
redemptions of Series C
notes
745,731
Redemptions of adjusted
service bonds
660,381
Volume Handled
64,281,490
Par Value Handled
______ (000 Omitted)
1946
1945
1,777,486 $
755,266
1,715,721
578,935
37,506
818,216
573,305
54,434
127
45
368,314
82,353,119
69,551,029
803,838
21,297,232
22,568,554
140,960
1,410,552
892,335
747,768
74,752,684
89,593,662
40,793
33,079
2,039
10,800,880
11,436,523
818,378
337,420
4,954*
25,499,828
$
$183,956,441 $184,808,885
* Number of albums
'far Loan Deposit Accounts: The activity in War Loan Deposit Accounts maintained
by qualified depositaries, as measured by the sum of deposits and -withdrawals,
decreased from $45,839,057,360 in 1945 to $13,245,684,752 in 1946.
2 - 1 5
PART 2
STATISTICAL SUMMARY
SAVINGS BOND REDEMPTION DEPARTMENT
Redemptions of
U.S. Savings Bonds,
Series A-E
194-5
Number of pieces
redeemed
Redemption value
of bonds redeemed
Maturity value of
bonds redeemed
Redemptions of
Series A-E Bonds
by Denomination
$10*
194-6
18,289,000
18,457,588
3576,696,000
$677,881,644-
'3756,904,000
$875,324,450
$25
$50
$100
$200
$500
$1,000
1945 (Pieces) 398,629 13,923,724 2,484,347 1,274,154
70 110,358 97,999
1946 (Pieces) 675,040 13,055,996 2,715,999 1,669,616 24,728 163,484 152,725
^Issued only to members of the armed forces.
Redemptions of
U.S. Savings Bonds,
Series F
Number of pieces
redeemed
Maturity value of
bonds redeemed
Redemptions of
Series F Bonds
by Denomination
1945 (Pieces)
1946 (Pieces)
33,109
$22,566,925
$39,596,325
$100
5,265
5,889
10,576
5,143
$500
$1, 000
$5,000
$10,000
2,008
3,527
5,467
9,443
1,162
1,911
964
1,763
1945
Number of pieces
redeemed
Maturity value of
bonds redeemed
1945 (Pieces)
1946 (Pieces)
20,009
$25
Redemptions of
U.S. Savings Bonds,
Series G
Redemptions of
Series G Bonds
by Denomination
1946
1945
1946
39,534
65,627
$53,404,000
$77,839,800
$100
$500
14,880
25,278
5,867
10,274
2-16
$1,000
14,285
23,810
$5,000
$10,000
2,068
3,257
2,434
3,008
PART 2
STATISTICAL SUMMARY
SAFEKEEPING DEPARTMENT
Accounts¡
Savings bonds held
for owners
Securities held for
member banks
Securities held for Treasury
and special accounts:
Notes and acceptances held
for member banks
1945
__________ 1946
Accountsi
Par Value
(000 Omitted)
Par Value
(000 Omitted)
60,595
38,302
1,029
3,598,613
1,042
3,792,927
202
2,925,503
203
2,291,275
8
3,821
14
2,405
38,987
$
1
64,136
Volume of pieces handled in the foregoing accounts:
Pieces received
Pieces delivered
1945
Par Value
Number
(000 OmittedJ
33,395,996 $298,890,482
283,251,747
33,609,555
1946
Par Value
(000 Omitted)
13,623,873 1299,648,645
14,032,908
314,577,785
Number
Securities impounded by the Treasury Department under General Ruling
No. 5, issued under Executive Order No. 8389 (Foreign Funds Control), were
handled as follows;
1945
Par Value
(000 Omitted)
$65,020
56,788
Number
Items received
Items delivered
13,688
10,324
Number
9,851
9,378
1946
Par Value
(000 Omitted]
163,884
72,462
Original issue transactions handled for the Treasury Department and
its various agencies;
Over Window
Safekeeping
Shipped by Registered Mail
»Tired tc Other Reserve Banks
Wired from Other Reserve
Banks for delivery in
New York
Total
1946
Far Value
Items
1945
Par Value
31,517
7,203
53,092
516
126,131,347,500
51,815,765,000
1,512,216,000
468,982,000
20,833
5,044
23,835
224
$20,595,461,000
53,542,134*500
818,075,500
184,532,000
8,018
7,790,836,000
870
5,764,717,500
100,346
$87,719,146,500
50,806
$80,904,920,500
2 - 1 7
Items
PART 2
STATISTICAL SUMMARY
SECURITY CUSTODY DEPARTMENT
The following table shows deposits and withdrawals of securities in
the vault during 194-6 as compared with 1945 in the following classifications
(which are more fully explained at page AP - 11 in the Appendix):
No. of
Pieces
(1) Safekeeping and
Open Market*
Deposits
Withdrawals
(2) R. F. C.
Deposits
Withdrawals
(3) Unissued stock
Deposits
Withdrawals
(4) Coupons
Detached
Re-attached
1946
1945
Par Value
(000 Ómittei)
No. of
Pieces
Par Value
^000 Omitted)
918,814
851,795
0117,300,066
110,607,440
699,601
786,044
$116,815,176
126,440,886
24,277
75,417
340,885
522,295
54,702
55,481
511,640
641,252
32,373,037
32,537,496
181,249,529
172,122,011
12,823,430
13,320,115
182,321,829
187,495,647
1,986,459
1,080
624,269
257
2,052,508
2,347
692,272
2,052
-«-Open Market Account transactions included in (1) were approximately as
follows:
Deposit Tickets
47,717,779
1,499
43,048,753
1,314
696
48,649,036
38,535,862
Withdrawals
327
x-
2 «• 1 8
PART 2
STATISTICAL SUMMARY
LOANS, CREDITS AMD R. F. C. CUSTODY
Officers in charge;
J. Wilson Jones, Vice President
Curtis R. Bowman, Manager, Credit Department and Discount Department
Charles N. Van Houten, Manager, R. F. C. Custody Department
CREDIT DEPARTMENT
V-loans and T—loans
No applications for new loans were received during 194-6.
Guarantees remaining outstanding at end of 1945 and 1946:
(000 Omitted on dollar amounts)
V-loans
December 31, 1945
December 31, 1946
No.
130
10
Amount of
Loans
Authorized
$665,954
22,564
T-loans
Guarantors1
Risk in
Loans
Authorized
1542,469
18,899
Amount of
Loans
No.
Authorized
#23,150
3
679
Guarantors *
Risk in
Loans
Authorized
“ $20,373
611
Regulation ¥ (Consumer Credit)
Changes during the year in the registration of persons licensed to
engage in consumer credit activities under Regulation W were as follows:
Number
Registrants at beginning of year
Registration certificates issued during year
Registrants who discontinued business during year
Registrants at end of year
1945
1946
19,466
660
669
19,457
19,457
1,346
516
20,287
Enforcement Activities (including Buffalo Branch)j
1945
Number of registrants examined
2,413
Credit transactions examined:
Instalment sales
142,724
«Charge sales
58,980
"-Instalment and single-payment loans
220
Violators who required disciplinary action
(conferences or disciplinary letters)
63
1946
3,743
262,717
106,427
1,026
168
’
"-Charge sale and single-payment loan credits not subject to regulation
beginning December 1, 1946-
2 - 1 9
PART 2
STATISTICAL SUMMARY
DISCOUNT DEPARTMENT
Applications from member banks for advances against United States
Government obligations were received and processed through the Head Office
and Buffalo Branch as follows:
1946
2,305
299
$8,496,609
liar. 13
67
$552,650
1945
3,004
261
$20,648,435
June 9
85
$702,090
Number of applications received
Number of banks accommodated
Aggregate borrowings (000 Omitted)
Borrowings on peak day:
Number of banks
Amount (000 Omitted)
During 1946, 917 loans aggregating %3t199,068,000 were repaid wholly or in part
before maturity, while during 1945 there were effected 1,093 prepayments
aggregating $4,790,539,000.
R. F. C. CUSTODY DEPARTMENT
During 1946 amounts received and paid out for the account of the
Commodity Credit Corporation, the Reconstruction Finance Corporation and
certain of its subsidiaries in connection with the purchases and sales of
commodities were as follows:
Number of
Commodities
Acquired
Commodity Credit Corporation
233,920 Dairy Production, Beef,
Sheep and Lamb drafts paid
Reconstruction Finance Corporation
Office of Defense Supplies
Office of Metals Reserve
Office of Rubber Reserve
Rubber Development Corporation
U. S. Commercial Company
150
Amounts
Amounts
Received
Disbursed
(000 Omitted) (000 Omitted)
:?449,586
$689,541
39,330
126
98
52
124,891
150,421
15,934
206,491
75,517
112,982
327,190
156,909
174
68,939
Under the blanket participation agreements entered into betvreen the
Reconstruction Finance Corporation and banks, whereby the Corporation is
obligated to purchase up to 75$ of loans to business enterprises made by such
banks, the number of transactions effected for the account of the Corporation
during 1946 as compared with 1945 were as follows:
Number of Agreements
1945
1946
188
274
2 - 2 0
Number of Loans fede
70
962
PART 2
STATISTICAL SUJUARY
Loans made by the Smaller War Plants Corporation* the Reconstruction
Finance Corporation and certain of its subsidiaries were serviced during 1946
as follows :
Number on books
at end of year
Federal National Mortgage Association
Reconstruction Finance Corporation
RFC Mortgage Company
Smaller War Plants Corporation
24
436
219
131
Balance due
at end of year
(000 Omitted)
I
80
584*990
1,766
5*167
In connection with loans serviced for the Smaller War Plants
Corporation, the Reconstruction Finance Corporation and its subsidiaries,
receipts* disbursements and collateral held at the end of the year were as
follows:
Collateral
Amounts
Amounts
held at end
Disbursed
Received
of year
(000 Omitted)
(OOO Omitted)
Reconstruction Finance Corporation
$28,486
$224*010
$909*106*565
RFC Mortgage Company
1*653,809
391
1*244
Smaller War Plants Corporation
684*722
8,101
19*299
Transactions were effected for account of the Reconstruction Finance
Corporation (Office of Defense Plants) during 1946* as compared with 1945* as
follows:
Number of
Amounts
Amounts
Year
Projects
Disbursed
Received
(OOO Omitted)
(000 Omitted)
456
$ 55*866
1945
$74*031
31*998
48,265
1946
383
Machinery and equipment, etc.* owned by the Reconstruction Finance
Corporation (Office of Defense Plants) declared surplus or transferred from
one plant to another during the year 1946 were as follows;
Aggregate cost value of
machinery and equipment,
land and buildings, etc.,
declared surplus
(000 Omitted)
Aggregate cost value of
machinery and equipment
transferred to projects
functioned by this bank
(00d Omitted)
$371,419
$1,299
Aggregate cost value of
machinery and equipment
transferred from projects
functioned by this bank
(000 Omitted)
$2,610
Checks drawn on the Treasurer of the United States for the account of
the Commodity Credit Corporation and the Reconstruction Finance Corporation
during the year were as follows:
Number of
Checks
Amount
108,629
$1,138,028,342
-if- * *
2 - 2 1
PART 2
STATISTICAL SUMMARY
OPEN MARKET OPERATIONS, TREASURY ISSUES,
AND MARGIN REGULATIONS
Officers in charge:
Robert G. Rouse, Vice President
Loren B. Allen, Assistant Vice President
Norman P. Davis, Assistant Vice President
Silas A. Miller, Assistant Vice President
SECURITIES DEPARTMENT
Bill Division
Transactions in bankers
acceptances for account of
(a) System Open Market Account
(b) Federal Reserve Bank of N.Y.
(c) Member banks
(d) Foreign correspondents
194$________
Number
Value
-
-
25
$
500,187
-
-
708
Securities Division
11,107,731
Number
Purchases of
System Open Market Account:
Open Market Transactions
Special Certificates of
Indebtedness
Received in exchange from Treasury
Federal Reserve Bank of New York:
U.S. Treasury Bills under re
purchase option
Member Banks
Government Accounts
Other Federal Reserve Banks
Foreign Correspondents
Amount
(000 Omitted)
Value
-
-
4,354
8
954
$68,897,200
48,642
18,190,117
1946
1945
Transactions
Trans
actions
Amount
(000 Omitted,
Securities
1,680
$35,911,092
5
14
488,000
6,684,661
4,002
1,069
2
19
141
6,932
27,578,751
66,073
1,035
6,680
657,500
171,393,792
Sales and Redemptions of Securities
System Open Market Account:
Open Market Transactions
316
$
654,334
Redemptions
52
30,708,867
Special Certificates of
Indebtedness
6
488,000
Tendered in exchange to Treasury
6,684,661
15
Federal Reserve Bank of New York:
U.S. Treasury Bills under re
purchase option sold and redeemed 2,853
26,820,935
Member Banks
1,749
43,336
Government Accounts
405
298,139
Other Federal Reserve Banks
7
975
Foreign Correspondents
476,610
94
5,497
$66,175,857
1946
2 - 2 2
1,430
$40,935,467
-
-
11
6,746,312
3,538
1,070
23
7
255
6,334
30,402,664
60,672
16,774
3,950
938,815
17^,104,654
755
66
$ 2,710,100
39,191,624
—
—
11
6,746,312
2,418
2,141
278
17
92
5,778
30,197,218
73,159
555,185
5,563
468,877
$79,948,038
PART 2
STATISTICAL SUMMARY
Other Operations of the Securities Division
During the year 675 certificates of capital stock of the Federal
Reserve Bank of New York were issued and 624 certificates were canceled.
New Issues Function
On weekly offerings of Treasury bills 3,032 tenders were received
during the year and allotted in accordance with instructions received from the
Treasury Department, as compared with 4,385 last year.
Cash and Exchange Subscriptions to Public Offerings
During the year there were no cash subscriptions for market issues
of United States Government securities, However, during the year 11,332 ex
change subscriptions for market issues of United States Government securities
totaling $18,734,702,000 were processed and allotted on a percentage basis in
accordance with Treasury instructions.
2-23
PART 2
STATISTICAL SUMMARY
PERSONNEL
Offlcer s In charge:
Edward 0. Douglas, Vice President
William F. Treiber, Assistant Vice President
William A. Heinl, Manager, Personnel Department
PERSONNEL DEPARTMENT
__
,
Confidential loans to employees
From Educational Loan Fund
(a) Number of borrowers during year
(b) Aggregate amount of loans made
(c) NUmber of borrowers since 1924
(d) Aggregate amount of loans since 1924
Number of employees receiving educational
refunds during year
Aggregate amount of educational refunds made
1945
$
__
92
3,969
2,993
132,450
1946
50
$
2,426
3,043
134,876
175
4,697
167
4,032
Personnel Division
Confidential loans to employees
From Officers Loan Fund (including Buffalo Branch)
(a) Number of borrov/ers during year
(b) Aggregate amount of loans made during year
(c) Number of borrowers at end of year
(d) Aggregate amount outstanding at end of year
Applicants interviewed
Applicants hired
$
138
24,558
121
16,394
$
101
18,081
82
10,012
6,002
1,043
8,346
948
4,317
1,114
29
926
120
27
8
4
4,142
1,096
8
793
246
40
9
4
Personnel Records Division
(Officers and Buffalo Branch rjot included)
Total employees at year end
Total employees leaving service
Entering military service
Resigned
Dismissed
Retired
Died
Employees appointed officers
Employees retained in service after attaining
retirement age (65)
Rate at year end of basic annual salary liability
Rate at year end of average basic annual salary
Deductions from salaries
1. Federal withholding tax
2. Purchases of savings bonds
3. Retirement System contributions
4. Associated Hospital insurance
5. Group insurance premiums
6. Systematic savings
7. Salary savings insurance premiums
8. New York Income Tax on non-residents
9. Garnishee orders
10. Repayments to Officers Loan Fund
Total deductions
2 - 2 4
$8,382,419 $11 242,354
1,942
2,714
1,057,997
1
548,827
509,501
26,527
36,537
98,550
796
9,250
215
18,716
_____
|2,306,916
$2
,065,440
430,920
667,872
33,316
51,801
98,538
711
12,415
439
19,093
'380,545
PART 2
STATISTICAL SUMMARY
PERSONNEL DEPARTMENT (Continued)
Medical Division
Professional
Personnel
Medical Director
Other Doctors
Nurses
Dentist
Hygienist
Technicians
As of
Dec. 31,
1945
1
5
7
1
1
2
As of
Dec. 31,
1946
1
4
7
1
2
2
2 - 2 5
Total No. of
Examinations
of Applicants
for Employment
1945 - 1,52T"
1946 - 1,233
Total No. of
Contacts with
Employees and
Applicants
1945 - 40,327
1946 - 45,598
PART 2
STATISTICAL SUMMARY
BUFFAID BRANCH
Officers in charge:
Insley B,
Halsey W,
George J.
M. Monroe
Smith, General Manager
Snow, Cashier
Doll, Assistant Cashier
Myers, Assistant Cashier
Accounting Division
1946
1945
Member bank reserve accounts
Nonmember clearing accounts
Number of entries posted
74
8
216,875
71
8
211,879
56,238
$107,759,305
59,383
$ 90,224,126
59,466
$112,985,4-93
63,554
$ 92,620,961
6,344
$ 21,687,488
$
6,811
8,900,166
1,947
$ 18,071,673
$
2,031
5,322,810
Withheld Taxes
Number of receipts received from
depositary banks
Amount
Number of receipts received from
Collectors of Internal Revenue
Amount
Number transferred to other Federal
Reserve districts
Amount
Number transferred from other Federal
Reserve districts
Amount
Cash Division
Paying Section
Number of transactions
Cash disbursed to:
Banks in Buffalo
Banks outside Buffalo
Treasurer of the United States
All Others
Total Cash Disbursed
14,983
15,169
$111,998,000
104,649,000
40,560,360
27,154,640
#284,362,000
$117,567,000
92,331,000
63,440,160
32,556,840
$305,895,000
19,158
19,092
$142,192,500
55,140,300
81,467,000
7,795,000
$286,594,800
$159,421,500
68,367,000
67,881,000
8,925,500
1304,595,000
Receiving Section
Number of transactions
Cash received from:
Banks in Buffalo
Banks outside Buffalo
Treasurer of the United States
All Other Sources
Total Cash Received
2 - 2 6
PART 2
STATISTICAL SUMMARY
Shipping Section
Packages
Shipments of :
Mutilated currency
Fit Federal Reserve Notes *
to other F, R. Banks
Currency to banks
Mutilated coin
Coin to banks
Securities to Treasury,
head office, and others
1945
Packages
8,321
$ 40,550,800
10,772
I 63,436,920
570
6,920
15
3,465
26,485,000
65,241,586
11,210
1,416,218
621
7,296
20
4,436
32,090,000
67,620,222
11,880
1,781,735
7,550
304,344,991
5,941
217,680,512
Currency and Coin Sorting Section
(Ö 00 ô m xT têd )
37,652
4,336
6,885
35,065
Bills counted
Bills rehandled
Verification count
Coin
$208,776
39,885
4,291
3,709
Wire Transfer Section
1946
Number
Amount
9,417 $1,704,903,436
947
4,646,032
1945
Number
Amount
8,222 $1,516,837,824
431
1,781,530
Check Division
1946
Amount
Pieces
(000 Omitted)
1945
Pieces! Amount
(000 Omitted)
Clearings through Buffalo
Clearing House
Other Buffalo checks
Checks on us
Country checks
Return items
Government checks payable
in Washington, D. C,
Punch card checks payable
through F. R. Banks
Daily average number of
checks handled
Number of cash letters sent
Number of ration checks handled
Collection Division
Number
Country items (ex
cept coupons)
City items (except
coupons)
Coupon s
Coupon transactions
Registered articles
received
Direct sendings
15,998
6,745
51,848
6,451
7,963
2,228
Amount
1946
Pieces Amount
(.000 Omitted)
41,394 $236,936
4,332
43,925
7,138
108,095
38,921
3,929
1945
Pieces Amount
Wire transfers
Mail transfers
1946
Amount
4,780
464
5
10,168
51
$2,519,388
71,542
179,262
2,908,199
7,482
4,883
478
5
11,941
63
$2,544,712
92,649
175,776
2,726,082
9,116
706
1,026,558
621
321,127
1,523
17,697
89,439
§6,801,870
1,411
19,402
81,743
15,951,205
58,803
180,586
763,374
68,324
169,337
60,674
1946
1945
Amount
(000 Omitted)
$33,559
27,304
2,839
Number
14,999
7,727
42,971
5,589
Amount
(000 Omitted)
$37,562
32,319
2,230
6,504
3,079
2,260
3,293
PART 2
STATISTICAL SUMMARY
Credit and Discount Division
Advances made to member banks
Prepayments by member banks
Number
lé 5**
63
1945
Amount
$¿18,720,000
80,290,000
Number
~VW~
77
1946
Amount
|259,735TÔÔÜ
120 215,000
,
*25 banksj #*30 banks.
Regulation W
185
267
1946
54
258
857
24,302
18,125
99,175
52,209
382
390
1,292
1,225
1945
Number of inquiries received by letter
Number of oral inquiries received
Number of investigations made
Transactions examined:
Instalment loans
Instalment sales
Charge sales
Number of violations disclosed:
Willful
Inadvertent
O ffice Service Division
Personnel Section
Payroll operations:
Basic salary payments
Supplemental compensation
payments
Overtime payments
Breakfast allowance payments
Supper allowance payments
1946
Number
Amount
5,037
5,607
$443,463
1,266
8,059
1,485
786
104
198,564
3,729
Claims for reimbursement of
Fiscal Agency expenses
99
Applicants interviewed
$320,059
39,594
53,107
1,395
427
189,510
Employees resigned:
Military service
Voluntary
Requested
December 31:
Number of employees
Annual salary liability
81
47 '
3
51
8
m
1
44
12
n
211
221
347,914
2 - 2 8
6
143
382
Applicants employed
1945
Number
Amount
467,496
PART 2
STATISTICAL SUMMARY
Deductions from salaries of employees:
Percentage of total salary paid
Federal Withholding Tax
Purchases of Savings Bonds
Retirement System contributions
Group insurance premiums
Systematic savings
Hospital Service Corporation of Western
New York
United War and Community Fund
Repayments to Officers Loan Fund
^
1945
1946
26.23%
$ 46,758.29
30,388.05
20,554.10
1,237.80
7,443.00
25 . 10 $
$ 40,594.73
26,303.50
28,726.75
1,965.00
11 , 243.00
1,422.31
145.20
_____ 331.25
$100,200.Off
1,911.33
135.55
408,60
$111,288.46
Custody Division
Number of checks issued
Amount
1946
1945
3,002
$5 ,826 ,050.00
896
H , 248,732.59
1945
3,049,997
$108,399,725
10,728
1946
2,798,887
$109,143,565
5,137
Savings Bond Redemption Division
Number of pieces redeemed
Maturity value
Number of checks issued
Securities Division
1945
Pieces
Redemptions:
Tax Notes
Gov't Securities
Other Gov't Guaranteed
Issues
Gov’
t Coupons
Coupons of Gov't
Guaranteed Issues
Sales:
U.S. Savings Bonds
U.S. Notes, Tax Series
1946
Amount
Amount
Pieces
12,023
2,247
$92,707,900.00
17,583,900.00
7,391
3,447
$58,379,275.00
22,270,638.19
1,403
52,763
1,616,650.00
1,877,031.89
261
60,919
372,875.00
2,036,975.11
2,725
44,147.09
1,265
18,828.13
33,058
7,090
34,111,900.00
57,572,500.00
29,997
2,522
40,680,000.00
17,916,700.00
1945
Accounts Par Value
^Security Custody:
Safekeeping for member banks
Pledged collateral of member
banks
Pledged securities for account
of Treasury Dept, and
Agencies
1946
Accounts Par Value
8
$154,430
6
$117,930
1
25,000
1
25,000
5
401,690
393,920
225
393
76
361
1,446
1,270
Number of custody transactions
Coupons clipped
«-Securities held on December 31
Number of Cashier’
s checks issued
2 - 2 9
PART 2
STATISTICAL SUMMARY
Bank Relations
Visits made to:
Member banks
Nonmember banks
Corporations in connection with
issuance of U.S. Savings Bonds
Meetings attended by officers and
staff members
FEDERAL RESERVE BANK OF NEW YORK
President’
s Report to Directors for 194-6
APPENDIX
GENERAL INFORMATION REGARDING THE FUNCTIONS
OF VARIOUS DEPARTMENTS OF THE BANK
Page
Accounting* Planning and S e r v i c e ............................ ..
AP -
2
Bank Supervision and Bank R e l a t i o n s .......... ...............
4
Cash and Collections . * • « •
...........
5
..........................
8
............................. ..
9
Foreign
......... . . . . .
.................. . . . . .
Government Bond and Safekeeping
Loans* Credits and R. F. C. C u s t o d y ......................
11
Open Market Operations, Treasury Issues,
and Margin R e g u l a t i o n s .................................
14
. . • ........................................ ..
15
Personnel
Buffalo B r a n c h ........... .......................................
AP - 1
15
APPENDIX
ACCOUNTING, PLANNING AND SERVICE
ACCOUNTING DEPARTMENT
Accounting Division; Disbursing Division;
Tabulating Division; Withheld Taxes Division
The Accounting Division maintains the General Ledger of the bank,
member bank reserve accounts, nonmember bank clearing accounts, settlement
accounts with other Federal Reserve Banks, the general account of the Treasurer
of the United States, and other deposit accounts with the bank, except foreign
accounts. It determines the reserves required to be maintained hy member banks
and initiates appropriate action in cases of deficient reserves. It receives
remittances in payment of cash letters sent by the bank to other banks in the
Second Federal Reserve District and handles certain adjustments relating to
these cash letters, such as errors in listing or lost checks. It also acts as
the custodian of bank records, other than certain correspondence, and arranges
for the periodic destruction of temporary records.
The Disbursing Division makes payment of all salary and related
items, together with all o'ther expenses incurred by the bank. It also pre
pares vouchers for reimbursement from the United States Government and agencies
thereof for expenses incurred by the bank in fiscal agency operations. In
addition* the division prepares various reports relating to the bank’
s expenses.
The Tabulating Division prepares certain records on International
Business Machine equipment for various departments of the bank, the principal
such records being those relating to: check collections, departmental and
functional expense distribution* claims for reimbursement of fiscal agency
expenses, securities held in safekeeping accounts, coupon cutting requisitions
and coupon credits, employee payrolls and earnings inventory of furniture
and equipment* and cost of supplies.
The Withheld Taxes Division handles the fiscal agency work of the
bank in connection with the collection at the source of Federal income taxes
on salaries. The division’
s functions are two-fold:
1.
It receives remittances from qualified depositary banks of
funds representing withheld taxes paid to them by employers,
it credits such funds to the General Account of the Treasurer
of the United States, and it maintains accounting records for
each authorized depositary bank.
2.
It receives from Collectors of Internal Revenue the original
depositary receipts issued by authorized depositaries to
employers* and reconciles these with the accounts it maintains
for the authorized depositaries.
PLANNING DEPARTMENT
Plannlng Division; Purchasing Division
The Planning Division supervises methods and practices throughout
the bank, and as a part of that program examines all purchase requisitions
for equipment and supplies* passes upon the specifications of all material
AP - 2
APPENDIX
ordered* and standardizes so far as practicable all printed forms. From time
to time it conducts surveys of the various departments to analyze their prob
lems and to suggest improved operating methods. It makes studies of the
controllable expenses of such of the operating departments as are susceptible
to such studies* and analyzes the causes of substantial deviations from the
annual estimate of expenses. It prepares floor plans and equipment layouts
whenever new units are set up or old units are moved. It also supervises
the servicing and repairing of any mechanical office equipment used by the
bank which is not serviced by the manufacturers.
The Purchasing Division buys all supplies for the bank and for the
maintenance of its buildings. It stores the supplies, disburses them on
requisition and maintains a perpetual inventory of all stock items. This
division also arranges for the purchase of rail and air transportation* and
the making of hotel reservations.
SERVICE DEPARTMENT
Food Supply Division; Post Office Division; Protection
Division;' Telephone Section; Vault Division
The Food Supply Division selects food and prepares and serves
luncheon for the officers and employees of the bank at prices substantially
below cost. In addition to the mid-day luncheon, the Cafeteria also serves
the night force from 3 to 6 a.m.* and special dinners are occasionally pre
pared.
The Post Office Division operates a postal station which serves
only this bank. It affords both ordinary and registered mail facilities.
The Protection Division provides protection for the main building
and the building at 95 Taiden Lane. Protection is also provided for all
messengers or clerks transporting valuables through the streets and for the
registered mail trucks that operate between the bank and the General Post
Office. The division operates the bank’
s automobiles and the employees*
check room. It also operates the telephone switchboard in the Central latch
Room from midnight to 7 a.m. Monday through Friday* and from 9 p.m. Saturday
to 7 a.m. Monday. In addition* it operates the emergency equipment in case
of fire. The panel board controlling the alarms on the vaults is under the
jurisdiction of the Protection Division.
The Telephone Section handles all incoming calls* all outgoing toll
calls and local calls for officers and employees who do not have dial tele
phones. It maintains two direct lines to the Treasury Department and two
lines to the offices of the Board of Governors * one of which is direct and
the other through the Federal Reserve Bank of Philadelphia. The switchboard
is operated from 7 a.m. to midnight Monday through Friday and from 7 a.m. to
9 p.m. Saturday. At other hours service is available through a switchboard
in the Central Vfatch Room which is operated by the Protection Division.
The Vault Division sees that only authorized persons are admitted
to the vault space and holds partial control on access to the bank1s currency
and securities.
APPENDIX
BUILDING OPERATING
Building Maintenance Division; Povrer Plant Division;
Building Service Division
This unit operates and maintains the main bank building, the annex
building at 95 -iaiden Lane and also the building owned by the bank at 10 Gold
Street.
The Building Maintenance Division maintains the three buildings,
maintains and repairs all machinery thereof except business machines and ma
chinery in the power plant, rearranges departmental and tenant's space and
partitions, repairs bank equipment and builds certain new equipment.
The Power Plant Division operates and maintains the power plant, the
air conditioning system and the heating systems of the three buildings and
maintains and repairs all machinery of these units. The power plant generates
all electricity for light and power for the main bank building. Between
January 30, 1943 and September 22, 1945 all steam for povrer and heating was
purchased from the New York Steam Corporation due to the shortage of fuel oil.
On September 22, 1945 the Power Plant was reconverted to fuel oil and since
that time all steam required has been generated in our own boilers.
The Building Service Division operates the elevators, cleans the
buildings, examines and bales waste paper, moves furniture and equipment and
furnishes utility porter service to various departments that require assistance
in the performance of laborious work.
BANK SUPERVISION AND BANK RELATIONS
BANK EXAMINATIONS DEPARTMENT
Examining Division; Analysis Division;
Application & Records division
-ke Examining Division handles the examination of State member banks,
banks applying for membership, a'nd affiliates and holding company affiliates.
The trust examiner handles the examinations of trust departments of State
member banks and of banks applying for membership.
The Analysis Division handles the analysis of examination reports
of member banks and of banks applying for membership, the preparation of corre
spondence, memoranda, and studies relating to member banks, the relations of
the bank with the Federal Deposit Insurance Corporation, the Reconstruction
Finance Corporation and State banking dspartments with respect to bank super
visory matters, applications of member banks for permission to reduce their
capital, reports of possible violations of certain criminal statutes, adminis
tration of Regulations L, 0 and R of the Board of Governors of the Federal
Reserve System, and recommendations on war loan depositaries.
AP - 4
APPENDIX
The Application & Records Division administers Regulation F* H* I*
K* M* P* and Q of the Board of Governors; handles the inspection and recording
of reports of condition and earnings of member banks; checks work copies of
examiners* reports, types such reports and does the general typing and steno
graphic work of the department; and maintains the departmental files.
BANK RELATIONS DEPARTMENT
The function of this department is to visit the banks of the Second
Federal Reserve District* to assist in keeping them informed of the operations
of the Federal Reserve Bank and of the Federal Reserve System* to give helpful
suggestions to the officers of the banks in matters tending to raise the
standard of bank management and* generally* to promote harmonious and satis
factory relations between the Reserve Bank and its members. It is also the
function of the department to promote better understanding with the nonmember
banks* to give them assistance with their current problems where this is pos
sible and to assist them in becoming members of the Federal Reserve System
when desirable.
-x- * * * #
CASH AND COLLECTIONS
CASH DEPARTMENT
Receiving Division; Sorting and Counting Division;
Paying Division; Coin and Bullion Division
The principal operations of this department relate to the receipt
and distribution of coin and currency.
The Receiving Division receives shipments of new paper currency from
the Treasury and deposits of circulated currency from member banks and other
depositors. This division also receives deposits of Government checks from
officers of the Government for credit to the Treasurer's General Account* and
deposits of both Government checks and checks drawn on this bank in large
dollar amounts which are presented by banks for immediate credit in their
reserve accounts.
The Sorting and Counting Division verifies circulated paper currency
deposited by member banks* and sorts out: (1) Federal Reserve notes of other
Federal Reserve Banks (these are returned to those banks* except that notes
of the Federal Reserve Banks of Boston and Philadelphia are shipped direct to
their member banks)* and (2) currency which is unfit for further circulation
(which is sent to the Treasury for destruction).
The Paying Division handles all shipments and counter payments of
currency to banks; handles those Government checks and coupons which are pre
sented over the counter for cash; and arranges for the shipment to our member
banks of fit Federal Reserve notes of the Federal Reserve Bank of New York
which are accumulated by the Federal Reserve Banks of Boston and Philadelphia,
and makes reverse arrangements as to fit notes of those banks which are ac
cumulated! by the Federal Reserve Bank of New York. Notes of the Federal
APPENDIX
Reserve Bank of New York are requisitioned from, and retired with the Federal
Reserve Agent in accordance with instructions given by this division to the
Cash Custody Department.
The Coin and Bullion Division receives, handles and disburses all
coin received by the bank. A limited amount of wrapped coin is prepared for
the smaller out-of-town member banks.
Under the provisions of General Ruling No. 5> issued under Executive
Order No. 8389 (Foreign Funds Control), United States currency seized by the
United States Customs has been delivered to this bank since May 194-2, to be
held until the issuance of a release order. All receipts and releases of such
seized currency have been handled in the Cash Department, except that currency
which had not been released within three months after seizure was lodged with
the Cash Custody Department until the issuance of a release order.
In December, the Treasury Department advised us that it expected to
eliminate all import controls over currency in the near future. It is antici
pated, therefore, that this particular function of the bank will be discon
tinued in a short time.
CASH CUSTODY DEPARTMENT
Cash Custody Division
This department maintains the custody in the vaults of all currency,
coin and bullion held by the bank, and receptacles containing other valuables,
making delivery thereof to various departments of the bank on requisition. In
accordance with the Vault Rules and Regulations of the bank, unissued Federal
Reserve notes, and gold certificates pledged as part of the collateral to secure
Federal Reserve notes, are held under joint control with the Assistant and
alternate Assistant Federal Reserve Agents; and the bank's coin and currency,
and bullion earmarked for foreign central banks and governments, are held under
joint control with the Vault Division of the Service Department.
The Check Routing Symbol and Treasury Currency Report Section of the
Department handles the two operations its name describes. Promotion of the
Check Routing Symbol plan is furthered by the development of information on the
expanding use of the symbol, the consolidation of such information from all
Federal Reserve districts and dissemination of the information to other Federal
Reserve Banks, the press and publications. Assistance is given to banks and
la: ger concerns in redesigning checks so a:~ to provide for the Check Routing
Symbol in the approved location. Treasury currency reports 011 unusual currency
transactions are submitted to this bank under instructions from the Treasury
Department. Reports are received monthly from b- r;ks and other financial
institutions and are tabulated for statistical purposes and turned over to a
representative of the Treasury Department.
CHECK DEPART!ENT
Cl ecr in g s J)ivision; Transit Division;
Return Item0 T)ivision
This department handles all checks and other cash items (other than
Government checks) received for collection from member and nonmember clearing
AP - 6
APPENDIX
banks in this district* from other Federal Reserve Banks and direct sending
member banks of other districts* and from or for the account of other depositors,
such as the Treasurer of the United States * various other Government agencies
and foreign central banks and governments.
The Clearings Division handles all checks and other cash items drawn
on banks in The Mew York Clearing House Association* The Northern New Jersey
Clearing House Association* and on those banks in Greater New York which par
ticipate in the Manhattan, Bronx and Brooklyn collection arrangement. It also
handles cash items drawn on members of the City Collection Department of The
Mew York Clearing House Association.
The Transit Division handles checks and other cash items drawn on
the other banks in the Second Federal Reserve District and on banks located in
other Federal Reserve districts* Checks drawn on such banks located in the
Second Federal Reserve District are processed on I.B.M. punch card equipment.
The Return Items Division handles all cash items, originally deposited
with us for collection, which are returned to us unpaid for any reason.
COLLECTION DEPARTMENT
Country Collection Division; Coupon Collection Division;
Wire Transfer Division
The Country Collection Division handles certain noncash items
(maturing notes, acceptances, drafts with or without documents attached and
other evidences of indebtedness and orders to pay* except checks handled as
cash items) which are received by the bank for collection* including items pay
able in New York City.
The Coupon Collection Division handles the work incident to the pay
ment by the bank, as fiscal agent of the United States* of coupons detached
from securities issued or guaranteed by the United States Government. It also
handles maturing bonds and coupons (other than Government bonds)* drafts with
securities attached payable outside New York City and certain municipal warrants*
received by the bank for collection.
The Wire Transfer Division handles telegraphic transfers of funds
betvreen the Federal Reserve Bank of New York and other Federal Reserve Banks
made for account of the Treasurer of the United States or at the request of*
or for credit to* member banks and nonmember clearing banks located in the
Second Federal Reserve District.
GOVERNMENT CHECK DEPARTMENT
Treasury Check bivision; Card Check Division
The Treasury Check Division handles all paper checks drawn on the
Treasurer of the United States payable in Washington which are received by the
bank for collection from member and nonmember clearing banks or other sources
in this district. The Ration Check Section of this division handles for
clearance ration checks drawn on "Ration Bank Accounts" maintained by member
and nonmember banks. These checks are received by us and forwarded to the
drawee banks in the same way as dollar checks.
AP - 7
APPENDIX
The Card Check Division handles the punch-card checks* most of which
are drawn on the Treasurer of the United States* "through" a designated Federal
Reserve Bank. 'ihereas all traditional style (so-called "paper") checks drawn
on the Treasurer are sent to Washington for examination and payment* most of
the punch-card checks are examined and paid in the Federal Reserve Bank through
which made payable. Punch-card checks drawn "through" other Federal Reserve
Banks are forwarded to such banks for examination and payment.
FOREIGN
FOREIGN DEPARTMENT
Foreign Operations Division; Reports and Analysis Division;
Cable Division
The Foreign Accounts Section of the Foreign Operations Division
handles the dollar* earmarked gold* and securities custody accounts maintained
by this bank for foreign central banks and governments under authority of
Section 14(e) of the Federal Reserve a ct., and also operates the Federal Reserve
System accounts maintained abroad. Transactions in such foreign accounts on
the bocks of the bank include payments and receipts* collections* gold earmarks
and releases* loans against earmarked gold, and purchases and sales of securi
ties. All Federal Reserve Banks participate in all such accounts and are kept
currently informed concerning operations therein. This section also handles
transactions for the International Monetary Fund and the International Bank
for Reconstruction and Development in our capacity of depository of these in
stitutions* and operations for the Export-Import Bank as fiscal agent in
connection with a '‘
>200 million loan to the Netherlands Government.
The Foreign Exchange Section of the Foreign Operations Division
handles foreign exchange transactions for foreign correspondents and out-of-town
member banks; also certain fiscal agency transactions. The fiscal agency func
tions consist of: purchases and sales of gold and. foreign exchange for the
Stabilization Fund, operation of stabilization agreements (entered into between,
the Treasury and various foreign governments and central banks), maintenance of
certain dollar and earmarked gold accounts (some of which relate to such stabil
ization and other similar agreements), purchases of silver under the Silver
Purchase Act* purchases and sales of foreign exchange* and remittances of funds
abroad for governmental purposes.
The Reports and A nalysis Division compiles and analyzes information
on international movements of capital and on foreign exchange* obtained from
reports collected by the division from banks, brokers, and others, pursuant to
the Executive Order of January 15* 1934 and Treasury regulations. The division
also makes studies of the effects of foreign operations on this market and of
developments in the United States balance of international payments, including
United States Government foreign lending and other aspects of international
finance. Rates of foreign exchange are certified by this division to the
Secretary of the Treasury, pursuant to Section 522 of the Tariff Act of 1930.
The translation of foreign language letters, documents* and reports dealing with
the foreign business of this bank is also handled here.
AP - 8
APPENDIX
The Cable Division handles all incoming and outgoing cablegrams and
radiograms* most of which are transmitted in our private code* and prepares
code books and secret telegraphic test keys for use between ourselves and our
foreign correspondents.
FOREIGN FUNDS CONTROL DEPARTMENT
This department performs the duties delegated to this bank, as
fiscal agent of the United States* by the Treasury Department in connection
with the administration of Foreign Funds Control. Tie principal duties are
as follows:
1.
Assists the Treasury in determining policy natters involving
the freezing control* and in the preparation of public docu
ments in connection therewith.
2.
Maintains public relations with banks and persons for the
purpose of advising them with respect to Treasury policy
and to assist them in connection with specific problems.
3»
Receives applications for licenses relating to transactions
affected by the freezing control; issues licenses or makes
other disposition of the applications.
4*
Receives and examines reports covering transactions effected
under license.
GOVERNMENT BOND AND SAFEKEEPING
GOVERNMENT BOND DEPARTMENT
Savings Bond Issue Division; Treasury Bppd Division
The Government Bond Department conducts the operations of the bank*
as fiscal agent of the United States* in connection with the issuance* dis
tribution* exchange and redemption of securities of the United States Government
and certain of its agencies* except for redemptions of United States Savings
Bonds which are handled by the Savings Bond Redemption Department. The depart
ment maintains detailed records with respect to public debt operations in the
Second Federal Reserve District and submits periodic reports to the Treasury
Department concerning such operations. The department also maintains records
of the balances held in war loan deposit accounts by banking institutions
qualified as special depositaries of public funds and controls the securities
pledged as collateral for such balances.
All organizations acting as issuing agents for sale of Series E
Savings Bonds in the Second Federal Reserve District, except post offices, are
qualified by the Government Bond Department which supplies them with bond stock
to be issued, receives their remittances of the proceeds of bonds sold and
Credits such amounts to the account of the Treasurer of the United States.
AP - 9
APPENDIX
SAVINGS BOND REDEMPTION DEPARTMENT
Redemption Division
This division handles the work of the bank, as fiscal agent of the
United States, in the following operations:
1.
Redemption of United States Savings Bonds of Series A-E*
paid by banking institutions.
2,
Payment and redemption of United States Savings Bonds of
Series A-E submitted directly to this bank by the public.
United States Savings Bonds of Series F and G are received
and transmitted to the Division of Loans and Currency of
the Treasury Department in Chicago for release of registra
tion prior to payment.
3«
Redemption of Armed Forces Leave Bonds,
4»
Maintenance of files for the department and for all general
correspondence pertaining to United States Savings Bonds#
including applications for issue.
SAFEKEEPING DEPARTMENT
Safekeeping Division
This department handles the records and maintains control of securities
held by the bank in safekeeping for account of member banks, the Treasury Depart
ment and various Government agencies, and foreign banks and governments, as well
as the safekeeping of securities received as collateral in certain other depart
ments and savings bonds held in safekeeping by the bank, as fiscal agent of the
United States, for account of the registered owners thereof. The Security
Custody Department maintains the actual custody in the vaults of all such
securities.
This department also renders many services to the owners of securities
held in safekeeping, including the acceptance and delivery of securities against
purchases or sales, the presentation of bonds or coupons for collection at
maturity, and notification to owners that their bonds have been called for
redemption or that other events have occurred affecting their securities in
safekeeping.
This department delivers Government securities to banks, brokers or
individuals on original issue, either over our counter, by registered mail,» or
by wire transfer to other sections of th" country; and also handles the delivery
of Government securities in New York City upon instructions received from the
other Federal Reserve Banks and branches.
SECURITY CUSTODY DEPARTMENT
Security Custody Division
This department handles the actual custody in the vault of all
securities held by the bank. These securities fall into the following classi
fications:
AP - 10
APPENDIX
1.
2.
3.
4*
securities held for the System Open Market Account and
securities held in safekeeping, including
(a) Treasury bills held by this bank in "Option Account"
(b) securities of member banks held for safekeeping*
pledged as collateral in War Loan Deposit Account,
or pledged to secure loans to member banks
(c) securities held in various accounts of the Secretary
of the Treasury, and
(d) securities held for foreign correspondents and others,
including Savings Bonds owned by individuals
securities held for account of the Reconstruction Finance
Corporation
unissued stock of United States Government securities, and
coupons clipped
(a) from unissued stock and held for destruction, and
(b) from securities owned by member banks or by the
System Open Market Account, and to be delivered
out for collection at maturity.
Securities other than unissued stock are received with vault receipt
attached from the department of the bank having control thereof. The Security
Custody Department validates each receipt, files the securities, maintains
control of each account for which securities are held, cuts coupons as they
mature in accordance with appropriate instructions, and releases the securities
to the appropriate department of the bank upon receipt of a withdrawal requisi
tion and return of the vault receipt«
Stocks of unissued Government obligations are requisitioned by the
department as needed by the bank for purpose of sale or exchange; and the
department dates, and otherwise completes, stocks of Treasury bills for the
weekly issues thereof and stocks of Federal Intermediate Credit Bank and Federal
Home Loan Bank obligations for the monthly issues thereof.
-x- * * * -x- *
LOANS, CREDITS AND R . F. C . CUSTODY
CREDIT DEPARTMENT
Credit Division
The work of this division consists of the following activities:
1.
The procurement and analysis of credit and financial informa
tion necessary to establish the acceptability of commercial,
agricultural and industrial paper offered by member banks for
discount or as collateral to advances pursuant to Regulation A.
2.
The processing of applications for industrial loans pursuant
to Regulation S and Section 13b of the Federal Reserve Act,
including the analysis of financial information submitted,
AP - 11
APPENDIX
the investigation of the applicant, and surveys, when
appropriate, of applicant's production and financial
management. Also all necessary servicing operations in
connection with loans or commitments made.
3*
Handling the work of the bank, as fiscal agent of the
United States, pursuant to Regulation ? relating to
guaranteed war production and termination loans, includ
ing the receipt and processing of applications for
guarantees, the issuance upon proper authority of such
guarantees, and the servicing of the resultant guaranteed
loans and credits.
4*
The administration of Regulation W relating to the control
of consumer credit, including the distribution of suitable
information, the receipt of registration statements from,
and the issuance of registration certificates to, individ
uals subject to the regulation, enforcement activities in
accordance with the general policies of the Board of
Governors, including action in the case of willful vio
lators, surveying of public opinion, and the development
and analysis of various statistical data pertaining to
consumer credit.
5»
The procurement and analysis of credit and financial in
formation upon the request of the officers of other
departments of the bank and other Federal Reserve Banks,
certain departments and agencies of the United States
Government, and foreign central banks.
DISCOUNT DEPARTMENT
Discount Division
This division processes all applications of member banks for discounts
and advances pursuant to Regulation A> and determines the eligibility of all
commercial, agricultural and industrial paper offered with such applications.
It also handles the pledging with the Federal Reserve Agent of certain eligible
collateral to secure Federal Reserve notes- In connection with Regulation V,
the department also maintains complete ledger records and other data respecting
V-loan and T-loan balances, and it bills and collects guarantee and commitment
fees on behalf of the respective guarantors. It also holds and services col
lateral against guaranteed loans which have been purchased by us for account of
the guarantors.
R. F. C. CUSTODY DEPARTMENT
R. F. C. Custody Division
The operations of the bank as fiscal agent, custodian and depositary
for the Reconstruction Finance Corporation and the Commodity Credit Corporation
are effected by the R. F. C. Custody Department. Work for the Reconstruction
Finance Corporation and its various subsidiaries involves:
AP - 12
APPENDIX
1.
the receipt and examination of corporate resolutions and
letters of authorization prescribing the conditions prece
dent to the disbursement by, and the receipt of, funds;
2.
the receipt, examination and safekeeping of promissory
notes and collateral of borroy/ers in connection with
loans ;
3«
the receipt, examination and safekeeping of deeds, leases,
invoices, bills of lading, warehouse receipts, and other
papers and documents evidencing title to defense plants,
the machinery and equipment therein, various metals,
rubber and other strategic materials;
4*
the disbursement, by checks drawn on the Treasurer of the
United States, of the amounts of loans and participations
therein, subsidy payments and payment for strategic
materials and other purposes;
5»
the maintenance of complete records of each transaction,
including detailed inventory records reflecting the
decription and cost of machinery and equipment installed
in defense plants, of various metals, rubber and other
strategic materials and. the preparation of appropriate
reports ;
6.
the release of title documents necessary to effect sales
of real property, machinery and equipment and strategic
materials; and
7»
the application of funds received in connection with pay
ments of principal and interest on loans, sales of
strategic materials, surplus war property and other
purposes.
The operations of the bank as fiscal agent, custodian and depositary
for the Commodity Credit Corporation involve:
1.
the disbursement, by checks drawn on the Treasurer of the
United States, of the amounts of subsidy payments and
payments for various commodities;
2.
the application of funds received in connection with
ssles of such commodities; and
3»
the maintenance of records of each transaction and the
preparation of appropriate reports.
AP - 13
APPENDIX
OPEN MARKET OPERATIONS, TREASURY ISSUES, AND MARGIN REGULATIONS
SECURITIES DEPARTMENT
Securities Division; Bill Division
The following operations of the bank are handled through the
Securities Division: (1) purchases and sales of Government securities for
the System Open Market Account and the allocation of such securities among
the twelve Federal Reserve Banks, in accordance with general directions of
the Federal Open Market Committee, (2) pledges of participations in direct
obligations of the United States held in the System Open Market Account to
secure Federal Reserve notes of each of the Federal Reserve Banks on instruc
tions of the Reserve Bank and its Agent, and. also pledges of such obligations
held in this bank's own account to secure Federal Reserve notes of this bank
on request of this bank, (3) purchases and sales of securities (other than
corporate stocks) in the open market for account of member banks, the Treasury
Department and foreign correspondents, (U ) purchases and sales of Treasury
bills at the Federal Reserve System's established buying rate of 3/8 per cent#
(5) compilation of statistical information and other data to aid in the plan
ning of new Treasury financing and the meeting of maturities, (6) making
studies, and keeping the Treasury and the Board of Governors currently in
formed of market conditions in Government securities, and (7) preparation of
reports covering market conditions and operations. This division also handles
the operations of the bank, as fiscal agent of the United States, in receiving
cash subscriptions for new issues of Government securities issued subject to
allotment, making the allotments thereon, and in receiving tenders on both com
petitive and fixed-price bases for the weekly issues of Treasury bills and
making allotments thereon.
The Securities Division is also charged with responsibility for the
registration, issuance and cancelation of the capital stock of the bank and the
payment of dividends on outstanding stock held by member banks.
The Bill Division buys and sells bankers acceptances for account of
the System Open Market Account when directed by the Federal Open Market Committee,
and also for account of member banks and foreign correspondents. Upon request,
it confers with banks regarding the eligibility of acceptances. It assembles
statistical data from accepting institutions regarding bankers' acceptances for
publication and distribution to such institutions and to the market. It also
receives weekly reports from dealers and compiles statistics therefrom for the
use of this bank and the Federal Open Market Committee.
SECURITY LOANS DEPARTMENT
This department administers Regulations T and U of the Board of
Governors of the Federal Reserve System governing, respectively, the extension
and maintenance of credit by brokers, dealers, and members of national securi
ties exchanges, and loans by banks for the purpose of purchasing or carrying
stocks registered on a national securities exchange.
AP - U
APPENDIX
PERSONNEL
PERSONNEL DEPARTMENT
Personnel Division? Personnel Records Division;
Medical Division; Stenographic Division; Corre
spondence Files Division
Ihe Personnel Division makes studies of policies affecting personnel#
selects new employees, controls assignments# administers certain bank rules#
controls insurance# and supervises educational and training programs.
The Personnel Records Division prepares payrolls# maintains employees *
records# administers the personnel policies to conform with government legisla
tion# and conducts research studies of current personnel trends in this area as
well as studies of matters of general personnel interest.
The functions of the Medical Division under the Medical Director in
clude (1) pre-employment physical examination of all applicants# (2) annual
physical reexamination of all employees in so far as possible# (3) health ad
visory service as related to the staff as a whole as well as to individual em
ployees# (4) minor emergency surgery and surgical dressings# (5) issuing excuses
from work because of illness or accident# (6) issuing and renewing medical leaves
of absence# and (7) supervising the sanitation of the building.
The Stenographic Division performs duplicating and photostating work
for the bank# maintains nailing list addressograph plates# and furnishes steno
graphic# typing# and addressing service where needed.
The Correspondence Files Division maintains control of the bank*s
general files and keeps certain documents in bound form.
The Club Office cooperates with the Federal Reserve Club in the further
ance of the social and recreational interests of the bank# and publishes "The
Federalist#" a weekly publication of events of interest within the bank. The
Club Office also handles educational loans and advises on educational and other
matters.
* * *
* *
BUFFALO BRANCH
The Buffalo Branch - which directly serves the ten westerly counties of
New York State# including the Cities of Buffalo and Rochester - also performs
most of the functions performed by the head office of the bank in New York City.
The Branch holds member bank reserve accounts and nonmember clearing accounts#
pays out and receives currency# receives deposits for account of the Government#
prepares the transcript of the Treasurer's general account# handles and clears
ordinary dollar checks and ration checks# and handles noncash collection items
and withheld taxes. It issues Treasury Savings Notes and all series of Savings
Bonds# and redeems Savings Bonds of Series A through E# and certain other ma
turing Government bonds# notes# certificates# bills# and coupons. It also makes
loans to member banks# performs custodian and other services for member banks#
administers the consumer credit regulation# performs custodian# disbursing and
other services for the Reconstruction Finance Corporation and the Defense Plant
Corporation# and in other ways serves the financial community and banking in
stitutions in western New York.
*
* -;{■*
AP - 15
@FedFRASER