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0

Eighth Annual Report

Federal Reserve Bank
of New York
For the Year Ended December 31, 1922

*

Second Federal Reserve District




Eighth Annual Report

Federal Reserve Bank
of New York
For the Year Ended December 31
1922




Second Federal
Reserve District

LETTER

OF

TRANSMITTAL

FEDERAL RESERVE BANK
OF NEW YORK

New York, January 17, 1923.

I have the honor to submit herewith the eighth annual report of
the Federal Reserve Bank of New York,
covering the year
GENTLEMEN:

Respectfully,
PIERRE JAY,

Chairman and Federal Reserve Agent.

FEDERAL RESERVE BOARD,

Washington, D. C.




Table of Contents
PAGE

Directors a n d Officers

4—5

I.

Credit conditions in the District in 1922

6-11

II.

Bank operations
Statement of Condition
Income and Disbursements
Earning Assets
Federal Reserve Currency
Reserves and Reserve Position
Collections and Clearings
Relations with Member Banks
Custody of Securities
Relations with Foreign Banks
Organization of the Bank
Bank Premises
Buffalo Branch

12-39
12
13-17
18-24
25-26
27-28
29-31
32-34
34
34
35-37
38
39

III. Fiscal agency operations

40-44

Appendix

45-62




Federal Reserve Bank
of New York
DIRECTORS AND OFFICERS, JANUARY 1, 1923
DIRECTORS
Term
Expires
Dec. 31

Class Group
A

1

GATES W. MCGARRAH, New York City

1925

Chairman, The Mechanics and Metals National Bank
A

2

ROBERT H. TREMAN, Ithaca, N. Y.

.

.

.

.

.

1923

President, The Tompkins County National Bank
A

3

CHARLES SMITH, Oneonta, N. Y

1924

President, The Citizens National Bank
B

1

OWEN D. YOUNG, New York City

1925

Chairman, General Electric Company
B

2

RICHARD H. WILLIAMS, Madison, N. J

1923

Williams & Peters, New York City
B

3

FRANK L. STEVENS, North Hoosick, N. Y

C
C

President, Stevens and Thompson, Inc.
PIERRE JAY, New York City, Chairman
WILLIAM L. SAUNDERS, Plainfield, N. J., Deputy Chairman .
Chairman, Ingersoll-Rand Company

C

1924

CLARENCE M. WOOLLEY, New York City

.

1925
1923
1924

President, American Radiator Company

MEMBER OF FEDERAL ADVISORY COUNCIL
PAUL M. WARBURG, New York City

OFFICERS
General Officers
BENJ. STRONG, Governor

J. HERBERT CASE, Deputy Governor

GEORGE L. HARRISON, Deputy Governor

Louis F. SAILER, Deputy Governor

EDWIN R. KENZEL, Deputy Governor

DUDLEY H. BARROWS, Secretary

JAY E. CRANE, Assistant Secretary
L. RANDOLPH MASON, General Counsel
JESSE HOLLADAY PHILBIN, Assistant General Counsel

Senior Officers
GILBERT E. CHAPIN,

Controller of Loans
RAY M. GIDNEY,

Controller at Large
ARTHUR W. GILBART,

Controller of Cash and
Controller of Collections
LAURENCE H. HENDRICKS,

Controller of Fiscal Agency Functions




JOSEPH D. HIGGINS,

Controller at Large
J. WILSON JONES,

Controller of Administration
EDWIN R. KENZEL,

Controller of Investments, Pro tern.
LESLIE R. ROUNDS,
Controller of Accounts

DIRECTORS AND OFFICERS, JANUARY 1, 1923—Continued
Junior Officers
CHARLES H. COE,

ADOLPH J. LINS,

Manager, Collection Department

Manager, Check Department

JAY E. CRANE,

WALTER B. MATTESON,

Manager, Foreign Department
EDWIN C. FRENCH,
Manager, Cash Department

Manager, Certificates of Indebtedness
Department and Manager,
Securities Department

BETHUNE M. GRANT,

JOSEPH L. MORRIS,

Manager, Government Bond Department

Manager, Credit Department

WILLIAM A. HAMILTON,

HENRY R. MURRAY,

Manager, Building Maintenance
Department

Manager, Securities Custody
Department

HOWARD M. JEFFERSON,

ROBERT M. O'HARA,

Manager, Personnel Development

Manager, Bill Department

Department

JAMES M. RICE,

ALAN K. LAUCKNER,
Manager, Methods and Supplies
Department

Manager, Accounting Department
STEPHEN S. VANSANT,
Manager, Discount Department

I. WARD WATERS,

Manager, Office Service Department and
Manager, Personnel Service Department
Auditor
FRANCIS OAKEY, General Auditor

EDWARD L. DODGE, Manager, Auditing Department

FEDERAL RESERVE AGENT
PIERRE JAY, Federal Reserve Agent
SHEPARD MORGAN, Assistant Federal Reserve Agent
CARL SNYDER, General Statistician
W. RANDOLPH BURGESS,

WILLIAM H. DILLISTIN,

Manager, Reports Department

Manager, Bank Examinations
Department

BUFFALO RRANCH
Directors
E. J. BARCALO,

THOMAS E. LANNIN,

President, Barcalo Manufacturing
Company, Buffalo

Vice-President, Lincoln-Alliance
Bank, Rochester

FRED J. COE,

ELLIOTT C. MCDOUGAL,

Vice-President, Power City Bank,
Niagara Falls

President, Marine Trust Company,
Buffalo

JOHN A. KLOEPFER,

HARRY T. RAMSDELL,

President, Liberty Bank of Buffalo

President, Mfrs. and Traders
National Bank, Buffalo

WALTER W. SCHNECKENBURGER, Manager

Officers
WALTER W. SCHNECKENBURGER, Manager

HALSEY W. SNOW, JR., Cashier

CLIFFORD L. BLAKESLEE, Assistant Cashier

ELMER L. THEOBALD, Assistant Cashier




PER CENT,

150

/

J\

1919 AVERAGE

\

J

50

1919

1921

1920

1919

19ZZ

Production in Basic Industries,
Allowance has been made for
seasonal fluctuations
1919 Average = 100 per cent.
PERCENT.

1921

1922.

Dollar Value of Wholesale Trade in
the Second District, Allowance has
been made for seasonal fluctuations
1919 Average = 100 per cent.
RATE

300

y

200

6

r\\V

\

1913 AVERA#

100

1920

3

0

1919

1920

1921

Department of Labor Index Number
of Wholesale Commodity Prices,
1913 Average = 100 per cent.




1919

192.0

1921

1922

Open Market Interest Rate on 4 to 6
Months Commercial Paper in
New York City

CREDIT CONDITIONS IN THE
DISTRICT IN 1922
Production, Trade and Prices

T

HE year 1922, seen from the standpoint of this Federal
Reserve district, was a year of transition. At its beginning
the tendencies of 1921 were still in process; interest rates,
prices of goods at wholesale and retail, and wages of unskilled labor
were declining. At the same time, however, other new tendencies
had begun to develop which later became the main characteristics
of 1922; production, railway traffic and wholesale trade were increasing, and unemployment, which had been heavy and widespread during 1921, was gradually being reduced.
As the year advanced, notwithstanding the adverse effects, for
the time being, of prolonged strikes of coal miners, railway shopmen
and others, the volume of production in basic industries throughout
the country increased until in a number of instances it equaled or
surpassed the maximum of former years, and the output of finished
products in many branches of manufacture also reached very large
proportions. The dollar value of the wholesale trade of the district and of the retail trade of the country, reported both by department stores in the cities and mail order houses dealing largely with
rural districts, was higher in the latter part of 1922 than in the
corresponding months of 1921. Freight movement on the railroads
also reached nearly to maximum. Labor shortages developed in
many sections of the country and the wages of unskilled labor and
the earnings of factory workers increased. The prices of commodities, particularly of farm products, rose, but at the close of
the year the prices of goods the farmer bought were still relatively
higher than the prices of products he sold. Interest rates in the
open market, reflecting the increased demand for funds implied in
the foregoing, turned upward in the early autumn and in December
were nearly at the level of the preceding January. Some of these
movements are shown in the diagrams on the opposite page.

Banking Conditions
The movements of production, trade and prices were closely
interrelated, as to both cause and effect, with the banking developments of the year. Primary among these was the continued inflow



8

EIGHTH ANNUAL REPORT

of gold, which entered the country largely through the port of
New York. Following the net receipt during 1921 of $667,000,000 of
gold, $238,000,000 additional was received in 1922. While the gold
imports were smaller in 1922 and tended to decline as the year
advanced, they exerted nevertheless a more powerful influence upon
banking conditions external to the Reserve Banks than did the
larger flow of the year before. In 1921 the gold flow found the
member banks of the country still much indebted to the Reserve
Banks, and the gold assisted largely in liquidating that indebtedness.
But in 1922, particularly after the first weeks of the year, the
member banks owed relatively little to the Reserve Banks; and
when the gold in natural course found its way into the reserves of
the Reserve Banks, so much of it as was not used still further to
reduce debt, served as the basis for a possible expansion of member
bank loans and deposits to a volume several times the amount of
the gold received. The result was a very material increase in the
lending power of the banks.
A second development tending in the same direction was the
refunding of bank loans and early-maturing debt into longer-term
obligations. The Treasury issued $2,511,000,000 of 2 ^ to 4 year
notes and $764,000,000 of 25-30 year bonds for the purpose of refunding the Government's early-maturing debt, and it is estimated
that during 1922 domestic bonds and notes were placed through the
New York market amounting to $5,400,000,000, which were
largely for the purpose of retiring bank loans or short-time notes,
or for refunding other maturing obligations. In this way much
credit which had been supplied by the banks and the discount
market was supplied through the long-term investment market, and
the banks and discount market were relieved accordingly.
Closely allied with the foregoing was the continued reduction
of the amount of bank credit required in the ordinary course of
conducting business. The collection of amounts due, the lessened
business activity of 1921, and the lower cost of materials and labor
had enabled corporations and individuals to reduce their indebtedness at the banks and in many instances to build up balances and
make investments for future use.
The combined effect of these three factors, as well as of others,
was a large increase in banking power, which was reflected in a rise
of deposits in member banks in New York City to a point about
equal to that reached in 1920, and in member banks in leading
cities throughout the country to a point somewhat above that
reached in 1920. In that year the credit-making machinery of the
country was under heavy strain, and the lending facilities of this and
other Reserve Banks were utilized nearly to the maximum. In 1922,
however, there was no such demand upon the credit-making




FEDERAL RESERVE BANK OF NEW YORK

9

machinery, either of the banks or the Reserve Banks; on the contrary, the member banks, particularly in the first half of the year,
were obliged to seek employment for their funds otherwise than in
loans to customers.
In consequence, the member banks both in New York City and
elsewhere in the country increased their investments in obligations
of relatively long maturity, both Government and corporate, to an
amount higher than at any time since the early part of 1919. The
reflection of such purchases by banks and other investors was seen
in the activity of the bond market, where bond prices continued to
advance until late in the summer. Coincident also with the increase
in bank investments, was a rise in the volume of loans secured by
stocks and bonds to amounts, both in New York City and elsewhere,
which were much above those reached in the early winter of 1919
and 1920, when such loans reached their previous maximums.

1919

1920

1921

1922

1919

1920

1921

1922'

Movement of Commercial Loans and Total Investments of Reporting Member
Banks in Principal Cities throughout the United States and in New York City»
partially estimated previous to 1 9 2 1 . Commercial Loans are All Loans except
Loans on Stocks and B o n d s

The rising commercial activity of the country did not result in
a demand upon the banks for commercial loans until the summer
and early autumn and then the demand did not reach large proportions. Commercial concerns in the main were still employing their
own funds or using the proceeds of investments made during the
period of inactive business. But the decline in the volume of commercial loans at the banks, which had been practically continuous



EIGHTH ANNUAL REPORT

10

since the autumn of 1920, came to an end, and an upward movement
began, attended by a slight advance in interest rates. Some of
these movements are illustrated in the accompanying diagrams.

Reserve Bank Credit
Though the $238,000,000 of gold received in 1922 entered the
country largely through the port of New York and found its way
to the New York Reserve Bank, it gradually penetrated throughout
the country in the regular course of business transactions. It had
the effect upon the Reserve Banks of largely increasing their gold
reserves. In the early part of the year, also, when lower prices
called for a smaller volume of hand-to-hand currency, Federal
Reserve notes returned to the Reserve Banks and served to reduce
to a very small amount the loans to member banks still remaining.
The reduction in note circulation and the reduction in discounts
and advances, both of this bank and of the system as a whole, were
very nearly equal; and much of the newly received gold was therefore available as reserve against increased deposits in the member
banks.
Member banks borrow from the Reserve Banks primarily for
the purpose of maintaining at the legally required amount their
reserve deposits, upon which they draw for currency, for gold to be
exported, and for other purposes. In 1922 the member banks were
enabled in general to maintain their deposits at the Reserve Banks
at the legally required amount with only infrequent borrowing.
This was in contrast with the experience of those months of 1919

FEDERAL RESERVE
BANK of NEW YORK

ALL FEDERAL
RESERVE BANKS

1919

1920

1921

1922

1919

1920

1921

\9ZZ

Total Earning Assets, Note Circulation, and Total Reserves of All Federal
Reserve Banks and of the Federal Reserve Bank of New York




FEDERAL RESERVE BANK OF NEW YORK

11

and 1920 when gold was moving out of the country. The banks,
already largely in debt to the Reserve Banks, were then obliged
still further to increase their borrowings so as to provide reserve in
place of the gold they withdrew for export. In the latter part of 1922,
as the seasonal requirements for currency and the demands of
business increased, there was some recurrence of borrowing, particularly to meet the demands of the end of the year, but at no time
did the loans to member banks rise appreciably higher than the
small amount in effect at the beginning of 1922.
The purchases by the New York Reserve Bank of bankers
acceptances and Government obligations in the open market are
described in detail elsewhere in this report. During the early part
of the year, both at this bank and at other Reserve Banks, such
purchases tended to increase, approximating the amount held in
1920; and later in the year, when the volume of such purchased
paper declined, the reduction was largely offset by an increase in
the loans to member banks. The investment policy had the effect
of maintaining the supply of funds available in the open market
at a fairly stable level.
In the main, the credit-making powers of the Reserve Banks,
which in the years of emergency had been used so heavily,were but
lightly utilized in 1922. The credit conditions of the year, outlined above, made such employment unnecessary save over short
periods to meet temporary requirements.




II
BANK OPERATIONS
STATEMENT OF CONDITION
The comparative statement of condition of the Federal Reserve
Bank of New York as of December 31, 1922, and December 31,
1921, is given in brief form below. A statement in greater detail
and with notes explanatory of the various items appears in the
appendix, pages 46 and 47.
RESOURCES
Dec. 31, 1922

Dec. 31, 1921

$956,784,070.26
31,313,929.70

$1,081,203,974.67
50,335,841.00

988,097,999.96

1,131,539,815.67

168,235,591.11

156,013,679.05

16,053,362.30

53,066,308.08

60,863,602.89
167,252,450.00

72,593,292.33
103,525,400.00

412,405,006.30

385,198,679.46

146,433,874.24

114,465,872.49

$1,546,936,880.50

$1,631,204,367.62

CASH RESERVES:

Gold
Legal tender notes, silver, etc
Total reserves
LOANS AND INVESTMENTS:

Loans to member banks:
Secured by Government obligations
Secured by discount of commercial paper
or agricultural paper or acceptances....
Bills and securities purchased:
Acceptances
United States securities
Total loans and investments (or earning
assets)
ALL OTHER RESOURCES (mostly uncollected

checks)
Total resources

LIABILITIES
CURRENCY IN CIRCULATION:

$597,071,293.50

683,922,381.00

749,005,902.75
517,656.11
11,439,182.74

726,097,832.01
32,616,430.48
14,450,428.68

760,962,741.60

773,164,691.17

100,414,872.15
28,688,450.00
59,799,523.25

86,806,318.31
27,113,850.00
60,197,127.14

$1,546,936,880.50

Total currency in circulation

$663,363,181.00
20,559,200.00

597,071,293.50

Federal Reserve notes
Federal Reserve bank notes

$1,631,204,367.62

DEPOSITS:

Reserve deposits of member banks
Government deposits
All other deposits
Total deposits
MISCELLANEOUS LIABILITIES (mostly checks

on deferred credit)
CAPITAL
SURPLUS

Total liabilities




12

FEDERAL RESERVE RANK OF NEW YORK

13

INCOME AND DISBURSEMENTS
A comparative summary of the income and disbursements of the
Federal Reserve Bank of New York for the last two years is given
in the following table. A more detailed statement appears in the
appendix, page 48.
1922

1921

EARNINGS:

From rediscounts and advances to member banks
From acceptances owned
From United States Government securities owned
Other earnings

$3,970,209.76
1,619,512.13
5,643,385.44
108,211.44

$30,762,021.40
1,829,665.00
1,955,969.96
157,282.33

$11,341,318.77

$34,704,938.69

$6,223,404.61
553,124.78

$7,076,187.58
1,091,591.96

843,196.31

443,326.95

Total deductions from earnings

$7,619,725.70

$8,611,106.49

Net income

$3,721,593.07

$26,093,832.20

$1,652,138.30
206,945.48
1,862,509.29

$1,608,721.16
3,782,671.10
20,702,439.94

$3,721,593.07

$26,093,832.20

Total earnings
DEDUCTIONS FROM EARNINGS:

For current bank operation
Cost of Federal Reserve currency
For self-insurance and other reserves, depreciation, etc

DISTRIBUTION OF N E T INCOME:

Dividends paid
Added to surplus
Paid United States Government as franchise tax
Total

The gross income of the bank in the last three years has declined
from $60,525,000 in 1920 to $34,705,000 in 1921, and $11,341,000
in 1922, reflecting the lessening credit demands in the last two
years. Whereas in 1921 demands upon the bank were heavy during
the early months of the year, during 1922 demands were light
throughout the year. Rates of discount at 43^ and 4 per cent,
were also lower than in the two preceding years.
The cost of conducting the business of the bank, including the
supply of currency, was reduced from $8,168,000 in 1921 to
$6,777,000 in 1922, a reduction of 17 per cent. There was not,
however, a corresponding reduction in the volume of work done;
on the contrary, in a number of the largest departments, such, for
example, as those handling the collection of checks, notes and drafts,
and the custody of securities, the volume of work increased; and
the work involved in handling cash did not diminish. Also, as in
the latter half of 1921, the bank assumed the major portion of the
expense of handling Government certificates, bonds and notes, formerly reimbursed by the Treasury Department. The volume of



14

EIGHTH ANNUAL REPORT

work in the departments handling the discounts and other earning
assets of the bank was less, but even at the maximum of former
years the expenses of these departments amounted to a relatively
small proportion of the total operating costs of the bank.
The main operating saving of the year was the result of modified
administrative methods, based on experience not available during
the period of the bank's rapid growth, which permitted the bank
to operate with a reduced staff through most of the year. In many
instances vacancies through resignations were not filled, and in
other instances such vacancies were filled by the successive promotion of employees already in the service of the bank, thereby leaving
vacancies to be filled by new employees of junior grade at a rate
of compensation suitable for beginners. In consequence the average
rate of pay declined through the year.
In addition to the foregoing, there was a reduction of $538,000
in the cost of printing Federal Reserve notes owing in some degree
to the smaller circulation during most of the year, but mainly to
the fact that the reserve supply held in Washington and in the vaults
of the bank had been increased during 1921 to a point where it
was necessary to print chiefly for current requirements.

Disposition of Gross Income
The amount and disposition of the gross income of the bank
are shown for each year since 1915 in the following diagram. The
heights of the columns compare the gross income of each year, and
the sections into which the columns are divided show the disposition
of income.
The current expenses of the bank have been, of course, the first
charge against its income; a dividend to the member banks, all of
which are stockholders in proportion to their own capital and surplus, has been paid each year at the legally fixed rate of 6 per cent.;
the bank's surplus has been increased in accordance with law, and
the remaining profits have been paid, as required by law, to the
Treasury of the United States as franchise tax. The amount so
paid in 1922 was $1,862,509, compared with $20,702,440 in 1921.
In addition, $1,604,549 was paid to the Treasury out of surplus.
This represented an increment to amounts paid as franchise taxes
in 1920 and 1921, and was in accordance with a modified ruling
governing the calculation of such payments. Under the law the
amounts paid by the Reserve Banks as franchise taxes are available
to the Treasury only for the purpose of placing additional gold
reserve behind United States notes, known as greenbacks, or for
use in retiring the Government's bonded debt.



FEDERAL RESERVE BANK OF NEW YORK

15

^ j U.S.TREASURY
H H SURPLUS
gH§ DIVIDENDS
| H EXPENSES

1916

1919

1920 1921

1922

Disposition of Gross Earnings of the Federal Reserve Bank of New York, in
Millions of Dollars.

Expenses of Operation
The expenses of carrying on the work of the bank, divided
according to functions, with the miscellaneous items of overhead
apportioned among the various functions, were as follows.
1. MAINTAINING THE ACCOUNTS OF THE BANK.
This work included making about 9,420,000 entries a year
in the accounts maintained with member and other
banks, and the current determination of reserve balances,
which are required by law

$219,084

2. SUPPLYING CURRENCY!AND COIN.
PAYING OUT, RECEIVING, AND REDEEMING CURRENCY, in-

volving the count of about 696,000,000 individual notes
during the year
PAYING OUT AND RECEIVING COIN.

merly performed largely by the Subtreasury, and is now
entirely in the hands of the Federal Reserve Bank.
Receipts and issues amounted to $186,500,000 for the
year



$855,913

This service was for-

173,601

16

EIGHTH ANNUAL REPORT
CURRENCY AND COIN SHIPMENTS to and from out-of-town

banks. There were 215,000 such shipments in and out
during the year

336,961

COST OF PRINTING NEW FEDERAL RESERVE CURRENCY to

replace worn notes in circulation and to maintain supplies
unissued and on hand, including cost of transportation..

553,125

TAX ON FEDERAL RESERVE BANK NOTE CIRCULATION,

mostly notes in the $1 and $2 denominations. (Federal
Reserve note circulation is not taxed)

69,374

SUPPLYING CURRENCY AND C O I N

$1,988,974

3. MAKING LOANS.
MAKING DISCOUNTS AND ADVANCES TO MEMBER BANKS.

The number of items handled during the year was
60,715, aggregating $9,206,000,000

$307,250

PURCHASING ACCEPTANCES AND GOVERNMENT OBLIGATIONS

for the account of this bank and other Federal Reserve
Banks. The items purchased during the year aggregated
$3,750,000,000

115,377

MAKING LOANS

$422,627

4. COLLECTING CHECKS, DRAFTS, N O T E S AND C O U PONS.

COLLECTION OF CASH ITEMS, mostly checks. The average

number collected was 392,715 a day, or 118,600,000
for the year, aggregating $62,300,000,000
$1,537,067
COLLECTION OF NON-CASH ITEMS, including drafts, notes and

coupons. The number of items handled during the year
was about 1,740,000, aggregating $1,520,000,000

512,585

COLLECTING CHECKS, ETC

$2,049,652

5. SUPPLEMENTARY SERVICES.

CUSTODY OF SECURITIES. This service involved holding in
safekeeping on the average about $700,000,000 of securities for the United States Government, $100,000,000 for
the War Finance Corporation and $200,000,000 from
other sources

$135,019

PURCHASE AND SALE OF BANKERS ACCEPTANCES and other

securities for member banks and foreign banks amounting for the year to $302,000,000 and receiving and delivering securities for the account of member banks,
amounting for the year to about $916,000,000. In addition the bank has acted for the Treasury Department
in the purchase and sale of Government securities
TELEGRAPHIC TRANSFER OF FUNDS.

formed over the telegraph wires of the Federal Reserve
system, and is used by the Treasury Department and
member banks. It involves making an average of 783
transfers of funds to all parts of the country each day,
amounting to about $83,000,000 and aggregating for the
year $25,126,000,000

fcb

SUPPLEMENTARY SERVICES




183,645

This service is per-

100,242
$418,906

FEDERAL RESERVE BANK OF NEW YORK
6. SERVICES IN CONNECTION
LOANS.

17

WITH GOVERNMENT

This work included during 1922 the receipt or delivery of
6,387,000 individual Government bonds, notes and certificates, amounting to $4,633,000,000, which were exchanged or converted or handled in connection with
registration; and the payment of 22,685,000 individual
coupons on Government bonds, notes and certificates.
It also involved the sale and issue of 320,000 pieces
amounting to $1,922,000,000, and the redemption of
646,000 pieces amounting to $1,451,000,000, of Government bonds, notes and certificates. Aside from amounts
received from the Treasury in partial reimbursement,
the cost of such operations to the bank was
(In addition to these operations for the Treasury,
the bank performed other work for the Government
connected with the currency, the collection of checks,
the custody, purchase and sale of securities, the
transfer of funds, etc., which have been referred to
under their respective headings.)

$616,859

7. GENERAL OR SUPERVISORY EXPENSES, not apportioned among the functions specified above.
EXECUTIVE SALARIES (Chairman, governor, four deputy
governors and secretary of the bank, and manager and
cashier of the Buffalo Branch)

$209,330

WORK OF THE FEDERAL RESERVE AGENT, including note

issues, examination of member banks, visits to member
banks, statistical and information services, such as the
preparation of weekly bank statements and the publication of the Monthly Review
MAINTAINING THE GENERAL AUDIT
DIRECTORS' FEES AND TRAVELING EXPENSES

365,219
264,971
23,075

THIS BANK'S SHARE OF THE EXPENSES OF THE FEDERAL

RESERVE BOARD
GENERAL OR SUPERVISORY EXPENSES

TOTAL




197,882

$1,060,477
$6,776,529

18

EIGHTH ANNUAL REPORT

EARNING ASSETS
During 1922 the earning assets of the bank, including loans to
member banks and holdings of United States Government obligations and bankers acceptances, were generally lower than at any
time since the first months of our participation in the war. Late in
the year, largely because of year-end adjustments, earning assets
increased, and on December 31, 1922, the total was $412,405,000
as compared with $385,199,000 on December 31, 1921.
The following diagram shows the course of the earning assets of
the bank for the eight full years of its operation. For purposes of
comparison the bank's holdings of purchased paper, consisting of
United States Government obligations and bankers acceptances,
are also shown. It will be observed that in recent months a change
in the volume of the bank's holdings of purchased paper has not
materially affected the volume of total earning assets of which they
are a part. The borrowings of member banks throughout the year,
by their increase or decrease, have largely offset the decrease or
increase of purchased paper.
MILLIONS
OF DOLLARS

1200

1000
EAI :NINGAS SETS

£00

I
1

J

600

J

/
\
\
\

400
PURC SA5ED BILI
&U.3. SECURITY

Art

200

/

»V J

\
1915 1916 1917 1918 1919 1920

121
9.

Total Earning Assets of the Federal Reserve Bank of New York and Purchased
Bills and United States Securities Held



FEDERAL RESERVE BANK OF NEW YORK

19

Discounts and Advances
At the beginning of 1922 loans to member banks were already
much reduced; banks in New York City in general were not borrowing, and banks in other parts of the district, where liquidation was
slower, were gradually extinguishing their indebtedness. The diagram below compares the borrowings by New York City banks
and banks in the district outside New York City during the last
four years. In the late summer and autumn of 1922, as the aggregate of the loans and investments of member banks increased, there
was an increase also in their demands upon the Reserve Bank.
But in general, loans to member banks remained small throughout
the vear.
MILLIONS
OF DOLLARS

1000

250

1919

1920

1921

192.2,

Discounts and Advances made by the Federal Reserve Bank of New York to
Member Banks in New York City and in the Second Federal Reserve District outside of New York City

While the aggregate amount of the discounts and advances made
by the bank in the entire year was reduced from $31,000,000,000
in 1921 to $9,000,000,000 in 1922, the number of pieces of paper
discounted or advanced upon was not reduced in like proportion,
due to smaller borrowings by city banks. There was also a slight
increase in the number of banks which borrowed at one time or
another in the year, indicating a somewhat more general utilization
of the bank's facilities. The following table compares certain of
the more important figures relating to rediscounts and advances
for each of the past three years.



20

EIGHTH ANNUAL REPORT
1921

1922
Applications received
Amount discounted or advanced upon
Number of pieces of paper
discounted or advanced
upon
Largest piece of paper discounted or advanced
upon
Smallest piece of paper discounted or advanced
upon
Average size of notes discounted or advanced
upon

14,178

1920

21,461

,206,363,786.02 $30,768,989,922.52
60,715

27,757
),539,428,847.71

149,868

180,462

$75,000,000.00

$78,100,000.00

$85,000,000.00

$13.22

$16.72

$14,72

$151,632.44

$205,307.26

$280,055.79

Discount Rates
The 43^ per cent, rate on all discounts and advances however
secured, which went into effect on November 3, 1921, continued
until June 22, 1922. On that date, following a marked decline in
interest rates in the open market, this bank's rate was reduced to
4 per cent., which continued in effect through the remainder of the
year. The reduction brought the rate of the bank to substantially
the same level as that which prevailed during 1915, 1916 and 1917.
The relationship of the discount rates of the bank throughout
the year to the market rates on commercial paper, bankers acceptances, Treasury certificates and the yield on Liberty bonds, is
illustrated in the accompanying diagrams.

Bankers Acceptances
This bank's holdings of bankers acceptances were larger in 1922
than in the preceding year, though smaller than in 1920. This
increase was owing largely to conditions within the bill market
itself.
During the first part of the year a large volume of foreign funds
seeking employment in this market was invested in bankers acceptances, continuing on a larger scale a tendency manifested in
1921. One result was a decline in rates to 3 per cent, or even lower,
and at these rates the demand for bills from banks in this country
diminished. Later in the year when foreign funds were being
withdrawn from the bill market for employment in Government
securities, or for the purchase of grain, interest payments and other
purposes, rates for bills rose and bankers acceptances became a



FEDERAL RESERVE BANK OF NEW YORK

21

KATE

iop

COMMERCIAL
PAPER

KATE

RATE

10

tor

BANK

BANK

MARKET

LIB ERTY
BO NDS
0

Open Market Interest Rates at New York Compared with the Discount Rates
of the Federal Reserve Bank of New York
Open Market Rates Shown are for Prime 4 to 6 Months Commercial Paper,
Prime 90-day Bankers Accepiances, Certificates Maturing in 4 to 6 Months,
and an Average of the Yields of 4 Issues of Liberty Bonds

more attractive investment for American banks. At times, especially when funds were being shifted from the bill market to other
uses, bills were offered in considerable volume to the Federal Reserve
Bank. The amount of call money available to the bill market at
rates permitting profitable use was limited throughout the year.
This bank's total purchases of bankers and trade acceptances
in the open market during 1922 aggregated $1,417,000,000 as compared with $1,379,000,000 in 1921. The number of pieces bought
in 1922 was larger than in any previous year except 1920, owing
partly to a tendency toward a reduction in the size of individual
pieces. These total figures included not only bills purchased for the
account of this bank, but those purchased for other Federal Reserve



EIGHTH ANNUAL REPORT

22

Banks, for the account of member banks and for foreign banks, as
appears in the following table.
1921

1922
Pieces

Amount

Pieces

Amount

Total

56,474

$871,000,000

46,836

$800,000,000

23,108

316,000,000

12,706

194,000,000

2,342

17,000,000

7,561

59,000,000

632
17,864

6,000,000
207,000,000
$1,417,000,000

1,347
22,884
91,334

15,000,000
311,000,000

100,420

For account of this bank
For account of other Federal
Reserve Banks
For account of members of
this Federal Reserve Bank. ..
For account of members of other
Federal Reserve Banks
For account of foreign banks. ..

$1,379,000,000

Minimum rates at which indorsed bills were purchased by this
bank for its own account and for the account of other Federal
Reserve Banks during 1922 are shown in the appendix.
While it is not possible to state accurately the volume of bankers
acceptances and prime commercial bills bearing banking indorsement which circulate in the open discount market, it is possible
to approximate the total from reports furnished to this bank. The
following table shows such estimates for the close of each year from
1916 to 1922 inclusive, compared with the amounts owned by the
Federal Reserve Banks.

Date

1916
1917
1918
1919
1920
1921
1922

Owned by
Federal
Reserve
Bank of
New York

Owned by
All Federal
Reserve
Banks

Estimated
Amount
Outstanding

Percentage
Owned by
All Federal
Reserve Banks
to Estimated
Amount
Outstanding

$41,457,000
148,125,000
69,323,000
191,312,000
109,902,000
47,313,000
45,789,000

$127,497,000
275,366,000
303,673,000
585,212,000
255,702,000
114,240,000
246,293,000

$250,000,000
450,000,000
750,000,000
1,000,000,000
1,000,000,000
600,000,000
600,000,000

51.0
61.2
40.5
58.5
25.6
19.0
41.0

Although the volume of bills outstanding at the close of the
year was no larger than at the close of 1921 and less than in the
three preceding years, the market on the whole was broader than
at any previous time. Aside from such obvious purchasers as city
and country banks, insurance companies, savings banks and other
financial organizations, buyers of bills included, according to reports received from various discount houses, the following:
Salt, iron and petroleum companies in California.
A creamery and a telephone company in Colorado.



FEDERAL RESERVE RANK OF NEW YORK

23

A hospital and various manufacturing plants in Connecticut.
Cotton mills in Georgia.
Many concerns in Illinois, ranging from publishing houses to manufacturers of
screen doors.
A lumber mill in Indiana.
Elevators and milling companies in Kansas.
Manufacturing concerns and municipal finance boards in Maine.
An athletic club in Maryland.
A linseed company in Minnesota.
Coke and chemical concerns in Missouri.
Butchers, laundrymen, and a boys' club in New York.
A varied range of buyers from steel companies to sanitariums in North Carolina.
A brewery and a coal miners' mutual association in Pennsylvania.
A Utah candy company.
Texas cotton companies.
A feed store in West Virginia.
A dairy farm in Wisconsin.
Also, scattered throughout the country, trustees of Protestant churches, bishops of
Roman Catholic dioceses, the Salvation Army, colleges large and small, lodges of Elks
and other fraternal and welfare organizations.
Also, besides the very large purchases of bills by foreign governments and by
foreign banks having branches in this country, many foreign banks in cities as widely
separated as Constantinople and Tokio, as well as many individuals in England, Switzerland, Holland, and other foreign countries.

It was also reported that more bills than heretofore found their
way to the market direct from the owners of the bills rather than
through the medium of the banks which had accepted them.
On March 29, 1922, the Federal Reserve Roard announced a
modification of its regulations respecting the rediscount or purchase
by Federal Reserve Ranks of bankers acceptances drawn to finance
export and import transactions. The modification broadened the
class of transactions in which member banks were able in practice
to extend acceptance credit and permitted the American practice
to conform more closely with that in foreign centers. The result
was to stimulate the further use of dollar credits in financing international transactions.
A regulation issued by the Federal Reserve Roard on May 6,
1921, permitting the Federal Reserve Ranks to purchase bankers
acceptances issued in import and export transactions, with maturity up to six months, has resulted in no abuses, and while four
months bills have been in fair supply, longer maturities have been
limited. The following table gives the approximate average maturity of the purchased bills held by this bank at three months' intervals during 1922 and 1921.
Date
January
1
April "
1
July
1
October
1
December 31




1922

1921

15 Days
28 "
16 "
50 "
22 "

27 Days
29 "
11 "
17 "
15 "

EIGHTH ANNUAL REPORT

24

On December 19, 1922, the Federal Reserve Board issued a
regulation which applied a similar rule to domestic bills secured by
staple agricultural products pending orderly marketing, and Federal
Reserve Banks thereby were permitted to purchase such bills with
maturity up to six months.

Government Obligations Owned
Other earning assets of the bank consisted of the following
groups of Government obligations.
1. One year special two per cent, certificates of indebtedness to
secure Federal Reserve Bank note circulation. The amount of such
certificates held under authority of the Pittman Act on December
31, 1921, was $35,400,000. This amount was gradually reduced as
the Federal Reserve Bank notes which they secured were retired.
On December 28, 1922, the entire amount then outstanding,
$3,000,000, was redeemed by the Treasury, which thereafter assumed
liability for all Federal Reserve Bank notes remaining unretired.
2. Special certificates of indebtedness running for a few days.
With the decline in the size of Government short-term issues, the
Treasury has had less need of temporary advances than in previous
years. The bank held special certificates of indebtedness covering
such advances on 45 days, as compared with 60 days in 1921. The
largest advance was that of March 15 amounting to $135,000,000.
3. Treasury notes and certificates under sales contract. As in
previous years the bank purchased certificates of indebtedness from
discount houses and dealers, under the provision that they be
repurchased within fifteen days. Under similar conditions the bank
also purchased during 1922 Victory notes and Treasury notes.
Except for relatively brief periods, when there developed in the
market an oversupply of short-time obligations, the amounts so
purchased were small.
4. Holdings of Government obligations. From time to time the
bank acquired for its own account certificates of indebtedness,
Victory notes, Treasury notes, Liberty bonds and Treasury bonds.
The largest amount so held in the year was $183,879,000 on May
10, 1922. The amounts held on dates at quarterly intervals were as
follows.
Less than
One Year
Dec.
Apr.
July
Oct.
Dec.

31, 1921
5, 1922
5, 1922
4, 1922
31, 1922




$59,603,000
40,908,000
95,124,000
76,002,000
65,745,000

Maturing in
One to
Five Years
$50,168,000
42,000,000
25,002,000
32,520,800

Over
Five Years
$596,000
857,750
857,750
881,750
1,148,750

FEDERAL RESERVE BANK OF NEW YORK

25

FEDERAL RESERVE CURRENCY
The accompanying diagram shows that in 1922 as in 1921 the
month to month changes in the amount in circulation of Federal
Reserve notes of all Reserve Banks were practically equal to the
changes in the total amount of money in circulation in the country,
illustrating the fact that Federal Reserve notes furnish the principal
fluctuating element in the country's currency.
The note circulation of this bank was lower in 1922 than at any
time since the first half of 1918, reflecting in the early part of the
year mainly the lower level of commodity prices and the restricted
volume of business which then obtained; and later an increase in
the circulation of other forms of currency.
At the request of the Secretary of the Treasury in the spring of
1922, the bank, in common with other Reserve Banks, paid out gold
for the account of the Treasury. As the year advanced and gold
importation continued, the bank increased its payments of gold
and gold certificates on general account.
Toward the close of 1922 the circulation of Federal Reserve
notes of this bank increased slightly because of the usual holiday
demand, but was about $66,292,000 below the circulation at the
close of 1921.
MILLIONS
Of DOLLARS

6000

FEDERAL RESERVE NOTES
ALL BANKS

FEDERAL RESERVE NOTES
NEW YORK BANK

1915

1916

1917

1918

1919

1920

1921

1922

Federal Reserve Notes in Circulation Compared with the Total Money in Circulation in the United States outside of the Treasury and the Federal Reserve Banks



26

EIGHTH ANNUAL REPORT

The amount of Federal Reserve Bank notes constituting a liability of this bank has been gradually reduced in the past three
years, as appears in the following table.
Date
December 30, 1920.
December 28, 1921.
December 27, 1922.

New York
$38,741,000
21,391,000
2,450,000

These notes were issued under the provisions of the Pittman Act
of April 23, 1918, for the purpose of supplying currency of small
denominations, mostly $1 and $2, to replace silver certificates
withdrawn from circulation, and were secured by Treasury certificates of indebtedness, which were reduced as the circulation diminished. On December 28, 1922, the last of the certificates was
redeemed and the Treasury thereupon assumed entire liability for
all notes remaining unretired.




FEDERAL RESERVE BANK OF NEW YORK

27

RESERVES AND RESERVE POSITION
The flow of gold from Europe to the United States, which
reached very large proportions in 1921, continued in 1922, but at
a gradually diminishing rate. This imported gold reached this
country largely through the port of New York, where, following its
natural course, it became part of the reserves of the Federal
Reserve Bank of New York, and thereafter in the course of
the nation's trade was distributed more or less generally among
all the Federal Reserve Banks. The following table shows the net
importations of gold into this country during quarterly periods of
1921 and 1922, and shows also the increases in gold reserves of this
bank and of all twelve Federal Reserve Banks through the same
periods.

Increases in Gold Reserve
Quarter Ended

March 1921
June
September
December
March 1922
June
September
December
Total (2 Years)

Gold Imports
(Net)

Federal Reserve Federal Reserve
Bank of
System
New York

$159,062,000
180,190,000
208,379,000
119,726,000
85,240,000
27,628,000
83,545,000
41,882,000

$122,026,000
283,648,000
156,538,000
41,020,000
49,814,000
54,077,000
-116,794,000
- 28,216,000

$151,432,000
251,166,000
264,035,000
143,634,000
105,755,000
45,513,000
56,075,000
-36,504,000

$905,652,000

$562,113,000

$981,106,000

The increase in the country's stock of gold was accompanied
by a large increase in the deposits of member banks, which called
for a corresponding increase in the reserve deposits of member
banks maintained at the Federal Reserve Banks. Member bank
reserve deposits reached their highest point of the year, $805,166,000,
on June 28. This was the highest point reached by the reserve
deposits of member banks in this district since the credit expansion
of 1919 and 1920, when on November 7, 1919, reserve deposits
reached a maximum of $806,972,000.
In 1922 the increased deposit liability of this bank and a small
decline in its gold reserves were partially offset by the decrease in
its liability on account of notes in circulation. The combined effect
of these changes is shown in the following diagram, which gives
the reserve percentages reported for the last week in each month
since 1917.



EIGHTH ANNUAL REPORT

28
PER
CENT

100

v

60

\

A

f
y

Rl SERVE
CENTAGE

40

2.0

1917

1918

1919

19£0

1921

1922

Reserve Percentage of the Federal Reserve Bank of New York each Month
since 1917

The foregoing diagram reflects in previous years in part the
effect of loans to or from other Federal Reserve Banks. In 1922 the
bank had no such transactions.




FEDERAL RESERVE BANK OF NEW YORK

29

COLLECTIONS AND CLEARINGS
The use by the banks of the district of this bank's facilities for
the collection of checks, notes, drafts, coupons and bonds and for
the transfer of funds, was more extensive in 1922 than in any
previous year. Both in the number of items handled and the dollar
amount represented, as well as in the number of banks making use
of the facilities, the volume of business was larger than at any
previous time.

Check Collections
At the close of 1922, out of 808 member banks in this district, 692
were directly using the check collection system, as compared with
628 banks at the close of 1921. On October 16, 1922, when a total
of 612,000 checks was handled, the number handled in a single day
reached the highest point since the establishment of the system.
The following table shows the increase in the use of this facility
in recent years.

Year

Banks Using
the
Collection
Facility

Date

Number
of Items

Items

375
508
628
692

Oct. 15
Oct. 14
Oct. 14
Oct. 16

390,000
460,000
496,000
612,000

74,066,000
87,036,000
104,519,000
118,589,000

1919
1920 .
1921
1922..

Highest Day

Total for the Year
Amount
$56,322,041,000
55,325,111,000
36,101,511,000
62,280,122,000

At the close of the year there were 663 employees engaged in this
work as against 649 at the close of 1921.
Further progress was made during the year in making the
proceeds of checks collected more quickly available to member
banks. The privilege of sending checks on banks in other Federal
Reserve districts direct to the Federal Reserve Banks in those
districts was further developed.
Also, there was an extension to six additional counties of the
arrangement previously made in eleven counties in this district,
whereby the member banks in those counties forward checks drawn
on other banks in the same county directly to such banks, and
simultaneously advise the Federal Reserve Bank of the amounts.
The Reserve Bank clears on its books the aggregate of the transactions and effects a saving of at least two days in the time required
for collection. Additional member banks were admitted to participate in the groups already established. The following table shows



EIGHTH ANNUAL REPORT

30

the counties and the number of banks in each group organized in
this manner.

Group

County

Number of
Banks

1
2
3
4
5
6
7
8
9
10
11
12

Delaware
Monmouth
Tompkins, Chemung, Tioga and Broome.
Middlesex
Westchester
Otsego
Herkimer
Steuben
Nassau
Bergen
Sullivan
Saratoga, Warren and Washington

16
22
19
20
23
13
14
8
24
29
9
17

Volume of
Settlements,
1922
$10,525,000
25,676,000
21,353,000
19,083,000
43,168,000
5,728,000
8,552,000
1,584,000
10,594,000
19,946,000
6,860,000
4,249,000

Arrangements were also made in 1922 whereby the members of
the newly formed Newark, N. J., Clearing House Association settle
their balances daily on the books of this bank. Except for the fact
that the clearing sheets are conveyed by messenger, the arrangement is the same as that previously established by the clearing
house banks of Syracuse, Elmira and Binghamton which settle
balances by wire.
The Northern New Jersey Clearing House Association, which is
now composed of 22 member banks with 4 non-member banks and
trust companies as associate members, increased further its volume
of transactions. Daily clearings of the association averaged about
$6,721,000 in 1922, as compared with about $6,288,000 in 1921. Of
the $2,029,681,000 total clearings for 1922 this bank presented items
aggregating $1,630,632,000.
In the Boroughs of Manhattan and The Bronx and in the Borough
of Brooklyn 32 additional banks and branches of banks participated
in the one-way collection facilities which have been maintained for
those boroughs for several years. During 1922 this bank presented
checks to the amount of $2,488,913,000 against banks in Manhattan
and The Bronx, and checks to the amount of $2,415,035,000 against
banks in Brooklyn.

Note and Coupon Collections
Notes and drafts handled for collection in 1922 numbered
964,828 as compared with 814,329 in 1921, an increase of 18 per
cent. Of this number 702,510 were drawn on places outside of
New York City, and 262,318 were payable in New York City.



FEDERAL RESERVE BANK OF NEW YORK

31

Matured bonds and coupons (other than United States Government obligations) were collected in the amount of $129,903,333 in
1922, as compared with $104,843,668 in 1921, an increase of 24
per cent.
The foregoing figures are exclusive of transactions at the Buffalo
branch, which are referred to in the section dealing with the operations of the branch.
As heretofore, the collection of notes, drafts and maturing bonds
and coupons has been handled for member banks without charge,
except that such charges as were made by collecting banks were
passed back to the banks depositing such items.

Telegraphic Transfer Service
Except in the volume of transactions, there was no change in
this service, which is used by the Treasury and the member banks
for the benefit of themselves and their customers. The number of
transfers so effected by this bank over the wires of the Federal
Reserve system, averaged 10 per cent, larger than in 1921, and the
dollar amount increased about 38 per cent. The following table
shows the telegraphic transfers of this bank to and from other
Reserve Banks and within this district from 1916 to 1922.
Year

Number

1916 (nine months) 2,971
1917
10,302
1918
39,099
1919
84,110

Amount
$484,500,000
6,768,400,000
19,384,400,000
18,364,500,000

Year
1920
1921
1922

Number

Amount

154,176 $17,409,900,000
214,480 18,160,300,000
236,368 25,126,100,000

Gold Settlement Fund
The average amount of daily transactions through the gold
settlement fund, operated by the Federal Reserve Board at Washington, was about $294,300,000 at the close of 1922, as compared
with $235,000,000 at the close of 1921. Transactions settled in
this way include the balances between Federal Reserve districts
arising from check collections, transfers of funds for member banks
and their customers, for the United States Treasury, and for the
several Federal Reserve Banks. The following table shows for this
district the aggregate transactions through the fund in each year
from 1915 to 1922.
1915
1916
1917
1918



$556,432,000
2,335,225,000
17,118,917,000
32,935,576,000

$41,932,723,000
48,840,900,000
39,697,533,000
45,465,167,000

32

EIGHTH ANNUAL REPORT

RELATIONS WITH MEMBER BANKS
Representatives of the bank continued during 1922 to visit the
member banks of the district. As heretofore, the effect of these
visits was to develop further the relations between this bank and
its members, to give the officers of this bank a clearer understanding
of banking and business conditions throughout the district, and to
give the officers of member banks a better understanding of the
operations and policies of the Federal Reserve Bank.
The bank continued to issue to member banks, their customers
and others desiring it, a Monthly Review of Credit and Business
Conditions. A series of articles explanatory of the operations of
the Federal Reserve system, begun in 1921, was continued throughout the year. The monthly circulation of the Review at the close
of 1922 was about 42,000 copies.
The bank, with the cooperation of the Treasury, the Federal
Reserve Board and the other Federal Reserve Banks, conducted
an exhibit at the convention of the American Bankers Association
held in New York early in October. The exhibit, which was adjacent
to the convention hall, was designed to show in graphic form
various operations of the Treasury, particularly those in relation to
the Government debt; many of the operations of the Federal
Reserve system, and economic developments which are currently
reported by the statistical services of the Reserve Banks. Certain
aspects of banking under the Reserve system were shown in motion
picture form. The exhibit had the cordial support of the officers
of the American Bankers Association and the managers of the convention and was attended by many bankers, both member and nonmember, from all parts of the country.
Late in the spring a pamphlet, "Better Banking," descriptive of
banking operations under the Federal Reserve system, was offered
by all Federal Reserve Banks to member banks at one cent a copy,
to cover the cost of preparation and printing. In most cases the
imprint of the member bank was placed upon the pamphlet for
distribution to its customers. The number of copies purchased
from this bank up to the end of the year was 667,000.
The right of banks to exercise fiduciary powers in accordance
with the terms of the Federal Reserve Act was extended during the
year to 26 National banks in this district.

Relations with Banking Departments—Examinations
Close cooperation, as heretofore, has been maintained between
this bank and the State Banking Departments of New York, New
Jersey and Connecticut, and also with the National bank examiners
having charge of work in this district.



33

FEDERAL RESERVE RANK OF NEW YORK

This bank's examiners participated in 103 examinations of member banks during the year, of which 8 were joint examinations of
National banks and 85 were joint examinations of State banks and
trust companies. In addition 10 National banks were examined
independently by the examiners of this bank, temporarily commissioned as National bank examiners, in accordance with the
request of the Comptroller of the Currency.

Bank Changes in 1922
At the close of the year the banks of the Second Federal Reserve
district (exclusive of savings banks), classified according to their
charters, whether National or State, and also according to membership in the Federal Reserve sj^stem, were as follows.
December 31, 1922
Type of Bank

December 31, 1921

NonNonPer Cent.
Per Cent.
Members Members Members Members Members Members
671
49
88

Total

218
125

100
18
41

667
48
85

2ii
123

100
19
41

808

National banks
ritate banks
Trust companies

343

70

800

334

71

The changes which took place during the year were as
follows.
Total number of banks in the district, January 1, 1922
New National banks established during the year
New State banks established during the year

1,134
.. 18
19

37

1,171
National banks absorbed by State institutions
National banks absorbed bv other National banks
State institutions absorbed by National banks
State institutions absorbed by other State institutions

..
..
..
..

4
8
2
6

National banks converted into State institutions
State institutions converted into National banks

..
..

4
2

Total number of banks in the district, December 31, 1922

nil

1,151

Membership of State Institutions
State banks and trust companies in this district which are members
of the Federal Reserve system numbered 137 on December 31. During the year eight State institutions were admitted to membership;



34

EIGHTH ANNUAL REPORT

two were converted into National banks; and two were absorbed
by other State institutions. None withdrew from membership.
The new members were as follows.
NEW MEMBERS
Month

Location

Bank or Trust Company

Resources
Dec. 29, 1922

February. .. Ridgefield Park, N. J... Overpeck Trust Company,
Ridgefield Park, N. J
$
464,548
Globe Exchange Bank
3,015,857
Brooklyn, N. Y
Midwood Trust Company
3,022,168
Brooklyn, N. Y
5,388,397
September.. Perth Amboy, N. J . . . . Perth Amboy Trust Company..
Westwood Trust Company
182,700
October. . .. Westwood, N. J
New York City, N. Y . . Bank of Europe, New York,
N. Y
8,899,108
New York City, N. Y . . Bank of New York and Trust
Company
133,880,892
Springfield Avenue Trust ComNovember.. Newark, N. J
pany, Newark, N. J
5,743,274

Thirty-two per cent, of the eligible State institutions in this
district are now members of the Federal Reserve system, and their
resources amount to about 78 per cent, of the total resources of
State institutions in the district eligible for membership.

CUSTODY OF SECURITIES
This bank continued during 1922 to serve the Government,
various governmental agencies, other Federal Reserve Banks, and
member banks, by purchasing and selling securities for them,
largely United States Government securities, and by holding
securities in safe-keeping.

RELATIONS WITH FOREIGN BANKS
The relations heretofore established by the bank with foreign
banks of issue continued as in previous years. Transactions with
the Bank of England, the Bank of France and the National Bank
of Belgium related mainly to reparations payments. Operations
under agreements with de Nederlandsche Bank and de Javasche
Bank, while of the same general character as heretofore, increased
in volume, and transactions with the Bank of Japan continued
without material change. Relations were established in the year
with the National Bank of Nicaragua, the Swiss National Bank,
and the Reichsbank.



FEDERAL RESERVE BANK OF NEW YORK

35

ORGANIZATION OF THE BANK
Board of Directors
The board of directors met regularly on Wednesday of each
week as usual. In view of the smaller lending operations of the bank
it was found possible to reduce the number of meetings of the
executive committee, which formerly met five times a week, and
since March 2, the executive committee has met only on Mondays
and Thursdays. Meetings of the other committees of the board
were held as occasion required.
On December 31, 1922, the terms of three directors, James S.
Alexander of Class A, Charles A. Stone of Class B, and Pierre Jay
of Class C, expired. Both Mr. Alexander and Mr. Stone declined
renomination and requested that their names be not placed before
the member banks at the election. The voting member banks,
which this year were those in Group 1, having capital and surplus
above $1,999,000, elected Gates W. McGarrah, of New York City,
chairman of the Mechanics and Metals National Bank, a Class A
director; and Owen D. Young, of New York City, chairman of
the General Electric Company, a Class B director, both for terms
of three years. The Federal Reserve Board reappointed Pierre
Jay, of New York City, a Class C director, for a term of three years,
and redesignated him Chairman of the Board and Federal Reserve
Agent for 1923.

Member of Advisory Council
At a meeting of the board of directors held on January 4, 1922,
Paul M. Warburg, of New York City, was reelected a member of
the Federal Advisory Council from the Second Federal Reserve
District for the year 1922.

Officers and Staff
The plan of organization under which the bank has operated
since 1919 was continued, but with various departmental and
administrative changes.
On March 8, L. Randolph Mason, formerly assistant general
counsel of the bank, was appointed general counsel, succeeding
Edward H. Hart, resigned. Thomas W. Bowers was appointed
assistant general counsel, effective April 1, and upon his resignation
on November 1, Jesse Holladay Philbin was appointed to succeed
him.
On January 1, Gilbert E. Chapin, formerly manager of the loan
department, became controller of loans. On February 24, the



36

EIGHTH ANNUAL REPORT

following changes in official designation took place: Arthur W.
Gilbart, formerly controller of administration, became controller of
cash and controller of collections; Laurence H. Hendricks, formerly
controller at large, became controller of fiscal agency functions;
Joseph D. Higgins, formerly controller of cash and custodies, became
controller at large and was designated temporarily as a member of
the procedure committee; J. Wilson Jones, formerly controller of
fiscal agency functions, became controller of administration; Charles
H. Coe, formerly manager of the check department, became manager
of the collection department; Edwin C. French, formerly manager of
the custody department, became manager of the cash department;
William A. Hamilton, formerly manager of the cash department,
became manager of the building maintenance department; Adolph
J. Lins, formerly manager at large, became manager of the check
department; and Henry R. Murray, formerly manager of the collection department, became manager of the securities custody
department. On June 1, James M. Rice, formerly manager of the
Government bond department, became manager of the accounting
department; Bethune M. Grant, formerly manager of the Government securities sales department, became manager of the Government bond department; and Alan K. Lauckner, formerly chief of
the bookkeeping division, accounting department, became manager
of the methods and supplies department, succeeding John E.
Raasch, resigned.
The number of persons in the service of the bank on December
31, 1921, was 2,907, and on December 31, 1922, was 3,043. Up to
late spring, however, vacancies occurring through resignation as
a rule were not filled, and the personnel of the bank declined to
2,692 on May 31, the low point for the year. This decrease was
the result not of any substantial decline in the gross volume of
the bank's work, but was rather a reflection of the passage of the
time when the bank, as in the years of its most rapid growth, was
constantly required to adapt itself to new operations. Experience,
based upon greater steadiness in the day-to-day work of the bank,
permitted adjustments in operating practice, to which the employees, particularly those longer in the service, gave hearty support.
In the early autumn, activity in the departments handling collections and currency required additional employees. Late in the year,
the large volume of work in connection with the redemption of
Victory notes and War Savings stamps and certificates necessitated
a further increase of about 175 employees, thus offsetting the reductions in the staff otherwise effected. The compensation of the
additional War Savings employees is reimbursed by the Treasury.
Educational courses in banking principles and in the operations
of the bank were given as heretofore to a number of groups of



FEDERAL RESERVE BANK OF NEW YORK

37

employees, including a special group, one-half of which were selected
young men from the bank and one-half recent college graduates, who
were also assigned progressively to the different departments of the
bank for practical experience. Training classes were also conducted
for newly engaged junior employees before assigning them to positions in the active work of the bank.
The Federal Reserve Club, which includes in its membership
most of the non-official staff of the bank, continued its activities
which included the encouragement of employees to participate in
the courses of the American Institute of Banking and other courses,
the editing of the monthly Federal Reserve Club Magazine, the
organization of physical exercise and athletic teams among the
employees and the management of a thrift association for employees.




38

EIGHTH ANNUAL REPORT

BANK PREMISES
During the year the inconvenience arising from the scattered
and crowded condition of the bank's present quarters has become
more pronounced, owing to the increased activity of various of the
larger departments. In the annual report for 1921 a description
was given of the new bank building, together with a statement of
the need for it, the method of organizing the construction work
and the estimated cost. Work upon this building has continued
throughout 1922, and on May 31 the cornerstone was laid.
At the close of 1921 the site had been cleared, the cofferdam
surrounding the lot had been nearly completed, and excavation
within the cofferdam had been begun on the western portion of the
lot. During 1922 the completion of excavation throughout the lot
to the level of the lowest basement, which involved a considerable
hazard to surrounding property, was successfully accomplished, and
by the end of November all matters covered in the foundation
contract were finished.
While foundation work was progressing it was possible to proceed
with the erection of steel and to some extent with the laying of
stone. At the close of 1922 the steel work of the entire building,
involving the setting of 12,400 tons, was 97 per cent, completed.
On the same date 97 per cent, of all exterior stonework had been cut,
and 48 per cent, of the entire amount required had been set. It is
estimated that if this rate of progress continues the entire building
will be enclosed by March 1, 1923, and may be partially occupied
by the end of the year.
The period since preliminary work on the building began has
proved to be favorable with respect to cost. At the close of 1921
contracts covering about one-quarter of the total estimated cost
of construction had been let at figures showing a 23 per cent, saving
from the estimates for items covered in those contracts. At the
close of 1922 contracts for more than two-thirds of the total estimated cost of construction had been let at figures showing a 29 per
cent, saving from the estimates for those items. Since the letting
of some of these contracts, prices have advanced and it is impossible
now to forecast whether the remaining contracts may be let at less
than the costs originally estimated.




FEDERAL RESERVE BANK OF NEW YORK

39

BUFFALO BRANCH
The operations of the Buffalo Branch, which deals primarily
with the ten most western counties of New York State, continued
to increase during the year, as will be seen from the following
summary of its operations.
Currency
Operations
for Member
and Nonmember
Banks

Loans
Made

Jan.-Mar
Apr.-June
July-Sept
Oct.-Dec

$69,868,000
78,658,000
80,843,000
92,528,000

$227,051,000
111,480,000
53,816,000
216,391,000

Total

$321,897,000

$608,768,000

1922

Interest
Earned

Checks and Transit
Items Handled
Number

Amount

$188,000
82,000
31,000
156,000

2,379,000
2,561,000
2,543,000
2,753,000

$482,384,000
534,691,000
552,340,000
624,102,000

$457,000

10,236,000

$2,193,517,000

During 1922 the branch handled 120,349 notes, drafts and other
time-collection items, in the amount of $85,252,576; and made
10,158 transfers by wire in the amount of $613,980,909.
The expense of operation for the year was $279,639, compared
with $338,777 in 1921. At the end of the year the branch had 4
officers and 153 employees, compared with 3 officers and 131
employees at the close of 1921.
Elmer L. Theobald, formerly chief of the check division, was
appointed on March 8 to be assistant cashier.




Ill
FISCAL AGENCY OPERATIONS
The bank continued, as fiscal agent of the United States, to
perform duties which in general were similar to those carried on in
previous years, but in some particulars were of a more extensive
character. The bank performed for the Government six major
functions:
1.
2.
3.
4.
5.
6.

The sale and redemption of Treasury certificates of indebtedness.
The sale of short-term Treasury notes and long-term Treasury bonds.
The redemption of Victory notes.
The handling of Government deposits and disbursements.
The exchange and conversion of Government bonds.
The sale and redemption of War Savings stamps and certificates.

Treasury Certificates, Notes and Bonds
As a further step in the redistribution of the short-maturing
Government debt into more distant and manageable maturities, the
Secretary of the Treasury announced on October 9 an issue of 25-30
year bonds dated October 16 and bearing 4J4 per cent, interest, the
first long-term issue since the Liberty loans. Like the issues of
Treasury notes, inaugurated in 1921 and continued in 1922,
the new issue of long-term bonds was solely of a refunding
character. The offering was for $500,000,000 or thereabouts, for
cash, and an additional amount to the extent that 4 ^ per cent.
Victory notes or Treasury certificates maturing December 15 were
tendered in payment. Cash subscriptions amounted to about
$1,400,000,000 and exchange subscriptions to about $252,000,000 in
addition. In making allotments on subscriptions for cash, preference was given to the smaller subscribers. Total allotments throughout the United States, including those made in exchange for Victory
notes and Treasury certificates amounted to about $764,000,000, of
which $345,000,000 were allotted in this Federal Reserve district,
or 45 per cent.
Issues of Treasury notes were made at lower rates of interest;
whereas in 1921 rates were 5% and 5]/2 per cent., in 1922 they were
as low as 4 ^ . The issues of Treasury notes were as follows.



40

FEDERAL RESERVE BANK OF NEW YORK

Date of
Issue
Feb.
Mar.
June
Aug.
Dec.

1, 1922
15, 1922
15, 1922
1, 1922
15, 1922

Maturity

Rate

Mar. 15, 1925
Mar. 15, 1926
Dec. 15, 1925
Sept. 15, 1926
June 15, 1925

m
Ws
4M
A.y2

41

Total Allotment in
United
States

Allotment
in Second
District

Per cent,
of Total
Allotted
Second
District

$601,599,500
617,769,700
335,141,300
486,940,700
469,215,100

$254,213,300
314,059,200
173,914,300
196,949,300
147,021,700

42.3
50.8
51.9
40.4
31.3

Issues of certificates of indebtedness were less numerous than
in previous years. Total allotments of the issues in 1922 were
$1,427,228,000 throughout the country, of which $624,382,000 were
allotted in this district, or 44 per cent. Rates of interest borne
by certificates of indebtedness were 33^ per cent, for the short
maturities and 3%, 4, and 4)4 per cent, for the longer maturities, in
general somewhat lower than the rates prevailing at the close of 1921.
The two diagrams on this page illustrate both the reduction in
the total volume of Government debt and the redistribution of
maturities, up to December 31, 1922. The diagram at the left
shows the growth in the amount of the total gross debt and the
debt that matures within five years, for the period during and immediately following the war, and indicates a gradual reduction of
$3,608,000,000 since the high point, on August 31, 1919. The
reductions in the short-dated debt (maturing within five years) have
amounted to about $2,934,000,000. The diagram on the right
illustrates the manner in which the early maturing debt has been

t\/
V
1917

1910

1919

1920

1921

The Government Debt



19£2

J

1917

VICTORY N JTES

;BTEDNESS

I

TRCASVRN

191©

1919

1?20

II

A

N01M

1921

1922.

Changes in Type of Short-dated
Government Debt Outstanding

42

EIGHTH ANNUAL REPORT

gradually redistributed into more convenient maturities. During
1920 and early in 1921 gradual retirement through revenue had
reduced somewhat the short-dated debt, but the Treasury in April
1921, still faced the necessity of meeting during the following two
years or thereabouts some $7,500,000,000 of maturities, mainly
certificates and Victory notes. The refunding first took the form
of short-term Treasury notes, and later was supplemented by the
long-term bond issue.
The investment demand for the new Government issues was
large throughout the year. Many banks found the new Government securities, as well as the older issues, a profitable means of
employing funds for which, especially in the early part of the year,
there was a lessened commercial demand. The following table
shows the amount of Government obligations held on quarterly
dates by the reporting member banks in principal cities of the
district, representing about 75 per cent, of the banking resources of
the district.

Jan.
Apr.
July
Oct.
Dec.

4.
5.
5.
4.
27.

Short Term
Issues

Long Term
Issues

$303,597,000
317,008,000
480,179,000
467,481,000
585,997,000

1922

$364,379,000
426,648,000
524,160,000
561,633,000
592,249,000

Redemption of Victory Notes
At the beginning of the year a total of about $3,548,000,000 of
Victory notes was outstanding. The Secretary of the Treasury
employed various means for reducing the total, the chief of which
were: First, to accept certain of them in exchange for various new
Treasury issues of more distant maturity; second, to call the 3 ^
per cent, series for redemption on June 15, and to call about half
the 4^4 per cent, series (those bearing the distinguishing letters,
A, B, C, D, E or F) for redemption on December 15; and third, at
the option of the holders to redeem notes of all series at par and
accrued interest in advance of the redemption dates. At the end
of the year the total that remained outstanding was $1,091,000,000,
of which about $237,000,000 was of the series called for redemption
on December 15.
The operations of this bank in connection with the retirement of
Victory notes are summarized in the following table.



FEDERAL RESERVE BANK OF NEW YORK

43

Redeemed by
Exchange

Redeemed for
Cash

Victory notes:
3 % per cent., called June 15, 1922

$8,401,900

$218,192,350

4% per cent., called Dec. 15, 1922

730,638,350

123,585,200

30,427,450

1,419,000

4% per cent., due May 20, 1923

Government Deposits and Disbursements
The banks of the district which subscribed for new issues of
Government obligations ordinarily paid for them, as in previous
years, by crediting the account of the Federal Reserve Bank of
New York as fiscal agent of the United States. Deposits so created
bear 2 per cent, interest and are drawn down ratably from time to
time as the Government requires the funds. The smallest amount
on deposit with qualified depositaries in 1922 was $17,869,000 on
October 16, and the largest $294,292,000 on December 21. Collateral pledged with this bank as security against such deposits
amounted at maximum to $388,815,000. Collectors of internal
revenue, as heretofore, deposited tax receipts with this bank to the
account of the Treasurer of the United States. The bank continued
at tax collection periods to lend to the collector of internal revenue
in Manhattan a staff of clerks for the purpose of assisting him in
the early deposit of tax checks. The clerks were reimbursed by
the Government for overtime, but their ordinary salaries were paid
by the bank.
The following table shows the number and amount of Government checks handled by this bank during the past few years, other
than those drawn in redeeming certificates of indebtedness, and in
the payment of coupons.

Year
1917
1918
1919
1920...
1921 .
1922
Total



Number

Amount

3,029,000
11,108,000
13,052,000
10,852,000
12,488,000
12,728,000

$1,099,458,000
4,936,592,000
7,653,565,000
2,465,931,000
1,638,094,000
1,308,752,000

63,257,000

$19,102,392,000

44

EIGHTH ANNUAL REPORT
Exchange and C o n v e r s i o n of Government
B o n d s and Notes

As in previous years, the bank conducted conversions of Liberty
bonds and Victory notes, exchanges from one denomination to
another, and exchanges of coupon for registered and registered for
coupon. The extent of these transactions during 1922 appears in
the following.
Pieces

Value

1922

Total

1922

1921

5,136,531

7,013,402

$1,883,483,660

$2,791,999,200

848,393

3,506,692

1,885,298,010

2,846,805,850

5,984,924

Bonds and notes received
for conversion or exchange
Bonds and notes delivered
on conversion or exchange

1921

10,520,091

$3,768,781,670

$5,638,805,050

The bank continued to cash coupons from Government bonds,
Federal Farm Loan bonds, War Finance Corporation bonds, and
other similar issues. The amount of such coupons aggregated
$336,000,000 or 23,000,000 pieces during the year, as compared
with $313,000,000 or 26,000,000 pieces in 1921.

Treasury Savings Certificates
The sale of Treasury Savings certificates in denominations of
$25, $100 and $1,000, was continued during 1922. In recognition
of generally lower rates for money, the Treasury on October 1,1922,
increased the selling price of certificates, which had the effect of
reducing the rate of interest on certificates held to maturity from
43^ to about 4 per cent., compounded semi-annually. Sales both
here and in other districts were conducted with the continued
cooperation of the banks and post-offices.
In accordance with an announcement of the Secretary of the
Treasury, dated November 13, the option of cash redemption or
exchange for new Treasury Savings certificates was offered to
holders of War Savings stamps and certificates maturing on January
1, 1923. In the large amount of administrative work involved in
this operation, the banks and post-offices participated, and in order
to make its facilities in this connection more generally available to the
public, this bank opened two offices in uptown New York City.
Up to December 31, this bank had effected exchanges of $492,522,
and had received $16,608,650 for redemption on January 1.



APPENDIX
EXHIBITS
LETTER

TITLE

PAGE

A

Statement of Condition

46-47

B
C
D

Profit and Loss Account
Capital and Surplus Accounts
Principal Assets and Liabilities each week in 1922

48
49
50—51

E

R a t e s in Effect During 1922

F

Discounts and Advances

G
H

Open Market Acceptance Purchases
Acceptances RediscountM for Member Banks

I
J

Fcdv^ul Reserve Notes
Check Collections

52
53
54—55
56
57
58

K

Telegraphic Transfers

59

L

Gold Settlement F u n d

60-61

M

Personnel and Annual Salary R a t e




62

45

EIGHTH ANNUAL REPORT

46

Exhibit A

STATEMENT OF CONDITION
At the Close of Business, Dec. 31,1922, and Dec. 31,1921
Resources
Cash reserves held by this bank against its
deposits and note circulation:
Gold and gold certificates in vault
Gold in the gold settlement fund lodged with
the Treasurer of the United States for the
purpose of settling current transactions
between Federal Reserve districts
Gold held by the Federal Reserve agent as
part of the collateral deposited by the
bank when it obtains Federal Reserve
notes. This gold is lodged partly in the
vaults of the bank and partly with the
Treasurer of the United States
Gold redemption fund in the hands of the
Treasurer of the United States to be used
to redeem such Federal Reserve notes as
are presented to the Treasury for redemption
Legal tender notes, silver, and silver certificates in the vaults of the bank (available
as reserve only against deposits)
Total cash reserves
Loans and investments:
Loans to member banks:
On the security of obligations of the
United States
By the discount of commercial or agricultural paper or acceptances
Acceptances bought in the open market
United States Government bonds, notes and
certificates of indebtedness
Total loans and investments (or earning
assets)
Miscellaneous resources:
Bank premises
5% redemption fund in the hands of the
Treasurer of the United States for Federal
Reserve bank notes (mostly in $1 and $2
denominations) presented to the Treasury
for redemption. This fund was closed out
on December 28,1922, when the Treasury
assumed liability for all such notes remaining unretired
Checks and other items in process of collection.
All other miscellaneous resources
Total miscellaneous resources
Total resources



Dec. 31, 1922

Dec. 31, 1921

$118,126,581.76

$283,141,669.40

169,378,439.83

130,058,226.99

658,970,228.28

653,004,078.28

10,308,820.39

15,000,000.00

31,313,929.70

50,335,841.00

$988,097,999.96

$1,131,539,815.67

$168,235,591.11

$156,013,679.05

16,053,362.30
60,863,602.89

53,066,308.08
72,593,292.33

167,252,450.00

103,525,400.00

$412,405,006.30

$385,198,679.46

$10,238,178.58

$6,647,921.86

134,303,106.41
1,892,589.25

1,603,360.00
103,362,741.74
2,851,848.89

$146,433,874.24

$114,465,872.49

$1,546,936,880.50

$1,631,204,367.62

FEDERAL RESERVE BANK OF NEW YORK

47

Exhibit A—Continued

STATEMENT OF CONDITION
At the Close of Business, Dec. 31,1922, and Dec. 31,1921
Liabilities

Dec. 31, 1922

Dec. 31, 1921

Currency in circulation:
Federal Reserve notes in actual circulation,
payable on demand. These notes are
secured in full by gold and discounted and
purchased paper
Federal Reserve bank notes in actual circulation, payable on demand. Liability for
all such notes has now been assumed by
the Treasury

$597,071,293.50

$663,363,181.00

Total currency in circulation
Deposits:
Reserve deposits maintained by member
banks as legal reserves against the deposits
of their customers
United States Government deposits carried
at the Reserve Bank for current requirements of the Treasury
Other deposits, including foreign deposits,
deposits of non-member banks, etc
Total deposits
Miscellaneous liabilities:
Deferred items, composed mostly of uncollected checks on banks in all parts of the
country. Such items are credited as deposits after the average time needed to
collect them elapses, ranging from 1 to 8
days
All other miscellaneous liabilities
Total miscellaneous liabilities
Capital and surplus:
Capital paid in, equal to 3 per cent, of the
capital and surplus of member banks
Surplus—that portion of accumulated net
earnings which the bank is legally permitted to retain
Total capital and surplus
Total liabilities




20,559,200.00
$597,071,293.50

$683,922,381.00

$749,005,902.75

$726,097,832.01

517,656.11

32,616,430.48

11,439,182.74

14,450,428.68

$760,962,741.60

$773,164,691.17

$98,100,885.92
2,313,986.23

$83,847,856.21
2,958,462.10

$100,414,872.15

$86,806,318.31

$28,688,450.00

$27,113,850.00

59,799,523.25

60,197,127.14

$88,487,973.25

$87,310,977.14

$1,546,936,880.50

$1,631,204,367.62

EIGHTH ANNUAL REPORT

48

Exhibit B

PROFIT AND LOSS ACCOUNT
For the Calendar Years 1922 and 1921
EARNINGS

From loans to member banks and paper discounted for them
From acceptances owned
From United States Government securities
owned, including United States Treasury certificates which secured Federal Reserve bank
note circulation
Other earnings

1922

1921

$3,970,209.76
1,619,512.13

$30,762,021.40
1,829,665.00

5,643,385.44
108,211.41

1,955,969.96
157,282.33

$11,341,318.77

$34,704,938.69

$6,223,404,61

$7,076,187.58

553,124.78

1,091,591.96

843,196.31

443,326.95

Total deductions from earnings

$7,619,725.70

$8,611,106.49

Net income available for dividends, additions to surplus, and payment to the
United States Government

$3,721,593.07

$26,093,832.20

$1,652,138.30

$1,608,721.16

206,945.48

3,782,671.10

1,862,509.29

20,702,439.94

$3,721,593.07

$26,093,832.20

Total earnings
DEDUCTIONS FROM EARNINGS

For current bank operation. (These figures include the greater portion of expenses incurred
as fiscal agent of the United States, since
July 1, 1921)
For Federal Reserve currency, mainly the cost of
printing new notes to replace worn notes in circulation, and to maintain supplies unissued and
on hand
For self-insurance and other reserves, depreciation, etc

DlSTRIRUTION OF N E T INCOME

In dividends paid to member banks, at the rate
of 6 per cent, on paid-in capital
In additions to surplus. (The bank is permitted
by law to accumulate out of earnings a surplus
amounting to 100 per cent, of the subscribed
capital; and after such surplus has been
accumulated to pay into surplus each year 10
per cent, of the net income remaining after
paying dividends)
In payment to the United States Government
as a franchise tax, representing the entire net
income of the bank after paying dividends and
making additions to surplus. (Federal Reserve
notes are not taxed.)
Total net income distributed



FEDERAL RESERVE BANK OF NEW YORK

49

Exhibit C

CAPITAL AND SURPLUS ACCOUNTS
Capital Account Reconciliation
$27,113,850.00

CAPITAL PAID IN JANUARY 1, 1922
INCREASE:

Due to increase of capital and surplus of member
banks
$1,677,500.00
Due to organization of new National banks
147,100.00
Due to admission of State banks and trust companies
408,300.00
2,232,900.00
29,346,750.00
DECREASE :

Due to decrease in capital and surplus of member
banks
Due to banks liquidating
Due to banks withdrawing from system

0
658,300.00
0
658,300.00

PAID IN CAPITAL DECEMBER 31,

1922

$28,688,450.00

Surplus Account Reconciliation
$60,197,127.14

SURPLUS ON JANUARY 1, 1922
INCREASE :

Due to transfer to surplus of amount previously set
aside as a "Reserve for undetermined liabilities".. $1,000,000.00
Due to payment into surplus of 10 per cent, of net
income for 1922 remaining after paying dividends..
206,945.48
1,206,945.48
$61,404,072.62
DECREASE:

Due to payment to the Treasury of increments to amounts paid as
franchise taxes in 1920 and 1921
SURPLUS ON DECEMBER 31,




1922.

1,604,549.37
$59,799,523.25

EXHIBIT D

PRINCIPAL ASSETS AND LIABILITIES-EACH 'WEEK IN 1922
(Amounts in thousands of dollars)

Date

Total
Earning
Assets
(2+5+6)
1

Jan.

4 . .. . . $355,314

11 .. . ..
18 .. . . .
25 .....
Feb. 1. . . ..
8 .....
15 .. . . .
21 . . . ..
Mar. 1. ....
8 .. ...
15 .....
22 . . . ..
29 . ....
Apr. 5 .....
12 .. . ..
19 . .. ..
26 .. . ..
May 3 .. .. .
10 .. .. .
17 .. ...
24 .. . ..
31 .. .. .
June 7 .....
14 .... .
21 .. .. .
28 .. . . .

252,638
235,831
210,686
263,581
325,746
323,380
248,859
284.,54 3
277,018
377,771
245,696
249,514
257,664
262,65·1
254,635
258,243
324,500
302,511
257,374
280,754
279,993
269,04·0
273,147
228,383
312,546




Bills Discounted for
Member Banks
Bills.
Secured by
Other
Total
U ... GovBills
ernment Discounted
Obligations
2
4
3
$199,303
164,276
141-,256
118,295
119,212
152,777
140,789
100,973
90,323
68,431
64,298
68,891
74,4.46
87,591
66,272
61 ,263
47,092
68,171
48,052
44,935
63,769
43,]56
39,302
42,737
33,593
87,840

$153,604
128,965
104,746
83,078
92,442
111,432
86,258
54,168
61,530
41,279
37,970
34,063
47,528
64·,202
43,338
41,759
30,932
48.055
30,057
26,101
37,559
24,263
23,274
25,799
18,327
70.233

$405,699
35,311
39,510
35,217
26,770
41,345
54,531
46,805
28,793
27,152
26,328
34,828
26,918
23,389
22,934.
]9,504
16.160
20,116
17,995
18,834
26,210
18,893
16,028
16,938
15,266
17,607

Bills
Bought
in O~en
Mar et

United
tates
Securities

Total
Cash
Reserves

Member
Banks'
Reserve
D eposits

Total
Deposits

5

6

7

8

9

$58,06.6
22,676
35,607
28,232
36,560
40,402
19,277
23,007
32,034
34,179
28,428
33,128
45,553
37,857
35,1\74
27,976
25,281
45,671
41,901
24,186
31,259
44,047
37,910
26,438
23,518
46.226

$97,975
65,686
55,968
64·,159
107,809
132,567
163,314
124,879
162,186
174,408
285,045
14.;l,677
129,515
132.216
160,908
16;',396
185,870
210,658
212,555
188,253
185,726
192,790
191 ,828
203,972
171,272
]78.1\80

$1,119,045
1,172,458
1,155,802
1,180,867
1,138,060
1,106,122
1,101,262
1,144,691
1,122,445
1,125,577
1,090,551
1,116,950
1,151,14-7
1,145,575
1,157,266
],164,288
1,163,204
1,136,488
1,156,555
1,189,775
1,187,996
1,172,542
1,196,296
1,165,325
1,184.,536
1.203.833

$713,943
708,588
651,480
652,31-1
662,370
686,330
689,778
650,439
674.,04·3
681,233
757,553
634,980
684,951
678,641
696,978
702,383
701,016
704,]27
731-,316
734,777
750,841
720,343
743,188
732,835
718,106
805 .166

$747,565
723,589
707,910
712,291
727,828
739,135
722,169
6117,508
707,947
698,074
772,093
662,868
702,464
698,294
716,776
738,839
729,851
763,886
765,062
762,060
778,940
746,903
773,127
765,140
729,613
826.330

Federal
Reserve Reserve
Notes in PercentCirculation ages
10
$663,073
626,329
611,792
605,082
614,031
615,027
621,792
626,544
626,673
628,280
626,501
625,844
625,774
633,156
625,426
621,684
615.475
623;900
619,314
617,404
614,887
625,246
620,153
616,159
6]7,810
618.785

11
79 . 3
86 . 9
87.6
89.6
84 .8
81.7
81. 9
87.1
84 . 1
84.9
78.0
86 . 7
86.7
86.0
86.2
85 . 6
86.5
81.9
83 . 5
86 . 2
85 .2
85 .5
85 . 9
84.4
87 . 9
83.3

Exhibit D—Continued
Date
July

5
12
19
26
Aug. 2
9
16
23
30
Sept. 6
13
20
27
Oct. 4
11
18
25
Nov. 1
8
15
22
29
Dec. 6
13
20
27

1
$326,098
319,276
321,607
255,314
229,742
216,496
222,402
237,423
241,652
268,725
260,877
244,769
267,989
301,845
390,257
322,154
263,707
307,661
320,469
327,176
270,723
252,340
331,698
298,422
312,049
307,286




2
$108,495
73,688
93,726
30,610
38,882
33,759
40,925
46,850
44,821
48,276
41,972
44,670
46,636
57,777
150,267
102,506
85,926
161,018
183,602
194,456
160,977
137,022
208,046
183,882
142,356
144,810

3

4

5

$68,295
58,506
69,495
16,216
22,037
15,529
21,852
28,482
24,694
26,171
21,438
18,048
24,750
36,529
110,261
57,515
63,061
121,125
127,649
159,961
134,900
108,934
177,085
160,669
126,029
125,487

$40,200
15,182
24,231
14,394
16,845
18,230
19,073
18,368
20,127
22,105
20,534
26,622
21,886
21,248
40,006
44,991
22,865
39,893
55,953
34,495
26,077
28,088
30,961
23,213
16,327
19,323

$46,924
46,363
40,399
37,572
33,331
26,359
26,835
40,431
45,810
59,320
67,414
72,011
80,545
81,376
85,589
85,401
78,670
79,636
75,345
75,200
60,225
56,375
58,925
51,224
41,225
45.789

6
$170,679
199,225
187,482
187,132
157,529
156,378
154,642
150,142
151,021
161,129
151,491
128,085
140,808
162,692
154,401
134,247
99,111
67,007
61,522
57,520
49,521
58,943
64,727
63,316
128,468
116,687

7
$1,118,380
1,139,590
1,134,730
1,173,233
1,189,159
1,167,424
1,145,868
1,165,030
1,163,812
1,121,728
1,104,827
1,091,342
1,094,930
1,065,263
1,055,206
1,104,276
1,083,799
1,082,309
1,055,619
1,059,493
1,093,592
1,097,573
1,036,008
1,034,003
1,016.196
1.055,982

8
$724,200
771,550
759,212
731,617
746,735
691,613
682,552
700,222
710,752
698,254
693,487
655,266
690,325
702,210
769,834
781,805
685,870
720,186
683,356
711,072
713,569
679,289
704,183
680,828
700,790
707,106

9
$744,156
787,493
786,473
753,839
759,881
708,198
699,763
734,111
741,321
722,704
714,692
687,251
704,093
717,377
781,313
795,418
703,975
751,789
704,925
758,128
738,963
697,498
733,053
694,741
715,111
720,336

10
$642,355
622.754
616,469
616,779
623,044
621,278
613,644
609,556
606,993
615,358
604,842
605,186
604,481
610,763
611,984
605,330
595,140
598,764
604,301
588,415
580,198
594,003
593,520
591,809
605,539
599,001

11
80.7
80.8
80.9
85.6
86.0
87.8
87.2
86.7
86.3
83.8
83.7
84.4
83.7
80.2
75.7
78.8
83.4
80.1
80.6
78.7
82.9
85.0
78.1
80.4
79.2
80.0

>1
t"

H
w
<
td

52

EIGHTH ANNUAL REPORT
Exhibit E

RATES IN EFFECT DURING 1922
For Discounts and Advances to Member Banks
Period
January 3-June 21
June 22-December 31

Rates on All Classes of
Eligible Paper
4

For Open Market Purchases of Bankers Acceptances
Minimum Rates
Period
January 1-18.
19-31
February
March
April 1-6
7-30 . . .
May
June 1-21... .
22-30...
July
August
September....
October
November....
December... .




FEDERAL RESERVE BANK OF NEW YORK

53

Exhibit F

DISCOUNTS AND ADVANCES
Total Made Each Month, 1922 and 1921
1922

1921

Month
Number
of Items

Amount

Number
of Items

Amount

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

6,438
5,405
6,261
4,665
5,410
5,269
4,405
3,976
4,538
4,913
4,732
4,703

$945,228,301.93
745,682,000.68
482,865,862.32
453,641,385.25
277,364,584.90
345,164,080.11
617,935,631.29
344,202,169.31
391,409,970.31
1,046,396,172.94
1,703,058,212.80
1,853,415,414.18

19,809
21,275
17,131
9,071
9,646
11,118
10,642
11,188
10,648
10,163
8,982
10,195

$5,565,144,209.93
5,631,398,234.04
4,271,627,879.35
2,469,906,248.38
1,861,355,701.08
1,282,758,514,96
1,797,400,547.81
1,598,703,932.16
1,091,256,096.50
1,564,585,700.36
1,355,335,082.94
2,279,517,775.01

Total

60,715

$9,206,363,786.02

149,868

$30,768,989,922.52

Type and Maturity of Bills Held December 31, 1922
Maturity

Within 15 days.
16-30 days
31-60 days
61-90 days
Over 90 days. .
91-120 days...
121-150 days...
151-180 days...

Discounts or
Advances
Based on
United States
Securities

Discounts or
Advances
Based on
Commercial
Paper

Purchased
Bills

Total

$167,918,331.11 $10,137,302.34 $37,592,010.61 $215,647,644.06
2,148,191.53
9,393,383.59 11,541,575.12
8,984,655.68 11,582,533.12
2,447,224.94
150,652.50
3,513,563.85
4,992,621.84
166,607.50
1,312,450.49
8,193.00
8,193.00
1,314,303.29
1,314,303.29
38,950.05
38,950.05
26,735.82
26,735.82

Total Dec. 31, 1922. $168,235,591.11 $16,053,362.30 $60,863,602.89 $245,152,556.30
Average maturity in
22
days
8
21
12
Total Dec. 31,1921. $156,013,679.05 "$53,066,308.08 $72,593,292.33 $281,673,279.46
Average maturity in
days
23
15
8
13
Total Dec. 31,1920. $454,751,722.52 $416,686,474.82 $113,740,374.53 $985,178,571.87
Average maturity in
days
13
28
16
16
Total Dec. 31,1919.. $562,089,842.45 $228,713,445.79 $202,902,609.54 $993,705,897.78
Average maturity in
days
18
44
21
14
Total Dec. 31, 1918.. $652,567,674.72 $44,773,780.97 $77,576,632.94 $774,918,088.63
Average maturity in
days
13
17
15
28
^Includes agricultural paper and acceptances discounted.




Exhibit G

OPEN MARKET ACCEPTANCE PURCHASES
Bills Bought for the Account of the Federal Reserve Bank of New York in 1922
Bankers
Acceptances
Import
and Export

Bankers
Domestic
Acceptances

$35,112,897.56
53,163,205.24
60,444,500.59
35,018,088.80
53,474,554.63
52,461,556.82
59,865,547.52
63,106,195.08
84,848,511.34
54,398,912.98
41,659,410.98
60,866,416.27

$10,394,667.51
18,209,415.54
17,557,171.58
6,725,044.91
11,948,173.57
11,739,359.30
10,213,800.39
11,177,530.27
19,980,355.15
25,910,861.54
12,947,085.32
17,578,870.90

777,358.51
405,466.45
356,877.29
1,139,955.81
607,036.20
818,204.99
393,236.66

$3,718,450.00
3,382,855.45
6,791,500.00
2,467,953.17
1,182,144.00
1,880,559.78
1,968,769.70
3,429,996.99
3,131,000.00
1,361,629.06
3,288,000.00
4,520,000.00

Total 1922...

$654,419,797.81

$174,382,335.98

$5,215,711.49

$37,122,858.15

$292,040.00

Total 1921...

$551,922,942.75

$151,392,534.32

$6,181,961.18

$90,310,610.48

$5,000.00

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




Indorsed Trade
Bills of
Foreign Origin
$123,363.05
416,939.53
177,273.00

Bills Drawn
to furnish
Dollar Exchange

Domestic
Trade
Acceptances

$148,715.00
143,325.00

o
Total
1922
$49,226,015.07
74,878,839.28
85,210,111.70
44,388,359.88
66,604,872.20
66,858,834.41
72,453,584.06
78,070,599.63
109,248,537.30
82,421,764.78
58,712,701.29
83,358,523.83

Total
1921
$60,107,497.34
58,060,970.19
78,089,388.89
71,580,181.38
72,685,746.47
24,409,833.57
14,415,568.12
63,566,966.02
41,382,213.51
85,278,359.43
84,151,691.21
146,084,632.60

$871,432,743.43
$799,813,048.73

H

d
o

Exhibit G—Continued

OPEN MARKET ACCEPTANCE PURCHASES
Bills Bought for the Account of Other Federal Reserve Banks in 1922

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

Bankers
Acceptances
Import
and Export

Bankers
Domestic
Acceptances

Indorsed Trade
Bills of
Foreign Origin

Bills Drawn
to furnish
Dollar Exchange

Domestic
Trade
Acceptances

Total
1922

$12,321,873.86
11,453,505.23
10,784,732.79
4,605,008.19
7,416,036.26
13,929,257.57
14,967,696.51
25,981,346.73
36,141,958.68
32,365,566.26
46,022,535.63
34,985,761,08

$2,214,950.93
2,360,069.56
2,844,610.52
926,192.46
3,382,555.08
3,788,953.17
1,888,326.05
4,642,379.24
7,822,107.65
9,083,834.01
9,657,697.52
7,346,402.85

$719,018.00
464,016.00
205,000.00
100,000.00
1,205,892.30
360,000.00
231,000.00
880,284.19
1,171,187.78
531,424.02
1,212,600.00
1,777,300.00

$15,255,872.79
14,277,590.79
13,834,343.31
5,631,200.65
12,004,483.64
18,078,210.74
17,087,022.56
31,504,010.16
45,135,254.11
41,980,824.29
56,892,833.15
44,109,466.93

$250,975,281.79

$55,958,079.04

$8,857,752.29

$315,791,113.12

Total 1921... $141,642,317.52

$38,850,959.92

Total
1921

Total 1922...




$31,345.52

$13,946,914.94

$17,564,706.30
62,719,026.62
21,876,475.10
12,724,004.69
10,741,523.37
6,139,094.21
3,261,903.45
7,673,744.95
6,846,890.20
8,455,406.95
14,968,113.82
21,500,648.24

>

$194,471,537.90

en
en

EIGHTH ANNUAL REPORT

56

Exhibit H

ACCEPTANCES REDISCOUNTED FOR MEMBER
BANKS IN 1922
Distribution by Months and Classes of Bills
Month

Bankers
Acceptances

Trade Acceptances
Total
Domestic
January...
February..
March....
April
May
June
July
August....
September.
October. ..
November.
December.

Foreign

$85,632.61
35,000.00
71,395.68

$871,472.19
692,743.49
675,857.56
467,507.23
1,182,521.57
1,097,798.06
758,739.13
555,860.00
136,659.92
122,874.12
142,213.55
501,661.15

461,300.00
822,139.79
19,000.00

$871,472.19
692,743.49
675,857.56
482,194.50
1,182,521.57
1,097,798.06
758,739.13
555,860.00
136,659.92
669,806.73
999,353.34
592,056.83

Total 1922.

$192,028.29

$7,205,907.97

$1,317,127.06

$8,715,063.32

Total 1921.

$23,192,384.07

$33,321,307.25

$195,888.20

$56,709,579.52




$14,687.27

FEDERAL RESERVE BANK OF NEW YORK

57

Exhibit I

FEDERAL RESERVE NOTES
Movement between Federal Reserve Bank of New York and
other Federal Reserve Banks, 1922
Notes of Federal Reserve Bank
of New York
Received from other Federal Reserve Banks
From
Boston
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Notes of Other Federal Reserve Banks
Shipped by
Federal Reserve Bank of New York

Amount
$43,458,500
41,116,250
15,393,000
12,085,450
8,778,310
19,342,000
4,126,700
1,777,200
2,790,250
2,011,800
7,767,820
$158,647,280

To

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

Amount
$47,975,200
55,449,250
31,836,300
19,254,850
19,714,500
39,506,700
4,074,800
2,767,850
3,003,100
1,781,950
13,013,050
$238,377,550

Issues, Retirements, and Amount Outstanding
Total issued to the bank by the Federal Reserve Agent:
1914 to 1921, inclusive
During 1922
Notes unfit for circulation retired:
1914 to 1921, inclusive
During 1922

$2,855,923,000.00
470,200,000.00
$3,326,123,000.00

$2,039,176,500.00
512,012,620.00
a2,551,189,120.00

Amount outstanding December 31, 1922

$774,933,880.00

Amount outstanding December 31, 1922:
In actual circulation
Held by Federal Reserve Bank

$597,071,293.50
177,862,586.50

Total
On December 31, 1922, the Federal Reserve Agent held
against Federal Reserve notes:
Gold and gold certificates
Eligible paper
Total

$774,933,880.00

$658,970,228.28
220,389,024.83
,$879,359,253.11

a Includes $288,033,000 of notes fit for circulation returned by the bank and by the
United States Treasurer.



Exhibit J

en

CHECK COLLECTIONS
Classification of Checks Handled by the Federal Reserve Bank of New York in 1922
(Amounts in thousands of dollars)

Excluding duplications between main bank and branch

Month

On Treasurer
of United States
Number

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

940,483
889,674
1,113,693
1,084,382
999,335
1,052,764
869,901
1,096,567
1,073,655
1,211,107
1,117,188
1,111,915

Amount
$82,965
116,553
116,891
99,035
92,629
105,240
112,780
117,270
93,494
128,634
95,489
121,844

On banks in Other
Federal Reserve
Districts
Number

Amount

On New York
Clearing House
Number

1,008,646 $119,219 1,570,810
901,404 102,478 1,334,369
1,095,552 120,407 1,679,886
1,047,836 120,374 1,619,612
1,080,970 121,434 1,732,279
1,093,442 121,118 1,667,564
1,006,895 113,921 1,788,374
1,004,035 118,414 1,716,438
1,061,379 131,466 1,831,202
1,240,357 155,929 1,866,161
1,235,560 146,277 1,608,160
1,356,435 147,756 1,855,444

Amount
$1,596,834
1,395,469
1,660,806
1,572,196
1,546,868
1,717,597
1,633,765
1,586,920
1,677,993
1,869,995
1,684,201
1,925,856

On New York City
Outside of Clearing House
Number

Amount

On All Other
Banks in Second
District
Number

Amount

TOTAL

Number

Amount

307,686 $1,666,492 4,300,829 $574,365 8,128,484 $4,039,875
292,177 2,045,793 3,840,061 480,510 7,257,685 4,140,803
356,224 2,384,482 4,677,601 590,748 8,922,956 4,873,334
334,761 2,402,805 4,554,052 589,802 8,670,643 4,784,212
345,752 2,435,755 4,868,897 617,476 9,027,233 4,814,162
326,032 2,535,862 5,075,015 652,092 9,214,817 5,131,909
339,795 2,265,537 4,984,927 645,970 8,989,892 4,771,973
377,390 2,747,331 4,937,583 638,397 9,132,013 5,208,332
384,904 2,818,247 4,925,010 661,662 9,276,150 5,382,862
376,335 3,333,671 5,349,338 698,801 10,043,298 6,187,030
382,217 2,863,147 5,310,279 676,156 9,653,404 5,465,270
410,449 2,571,978 5,765,922 743,180 10,500,165 5,510,614

TOTAL. 12,560,664 $1,282,824 13,132,511 $1,518,793 20,300,329 $19,868,500 4,233,722 $30,071,100 58,589,514 $7,569,159 108,816,740 $60,310,376
Buffalo..

167,642

$25,928 1,584,583 $261,777 a2,615,531 a$l,056,343

5,404,677 $625,698

9,772,433 $1,969,746

GRAND
TOTAL. 12,728,306 $1,308,752 14,717,094 $1,780,570 22,915,860 6$20,924,843 4,233,722 $30,071,100 63,994,191 $8,194,857 118,589,173 $62,280,122
a On Buffalo Clearing House.
6 On New York and Buffalo Clearing Houses.



hH

1
a
23
23
d

O
H

Exhibit K

TELEGRAPHIC TRANSFERS
Daily Average
Amount Transferred (in thousands of dollars)

Number of Transfers

CO

Month
1917
January. ..
February..
March
April
May
June
July
August....
September.
October. ..
November.
December.




1918

1919

1920

1921

1922

31
35
38
48
73
70

65
80
88
101
112
110
135
142
168
188
187
209

211
213
213
221
235
270
281
283
316
342
368
371

375
388
425
423
466
502
510
501
534
577
640
741

721
682
645
615
697
711
650
686
733
800
871
731

731
747
723
725
773
774
739
726
824
889
887
867

1917

1918

1919

1920

1921

1922

$31,801
28,536
30,893
37,304
47,191
50,308

$49,138
50,064
42,693
54,740
55,046
70,647
67,710
54,046
55,640
98,785
68,018
86,149

$61,452
54,293
60,427
49,146
47,515
57,251
69,702
61,420
69,960
60,311
62,597
70,495

$63,012
55,790
58,394
54,051
50,651
53,973
53,003
49,652
61,765
65,127
58,022
63,792

$59,498
50,885
57,417
53,439
58,757
63,248
53,153
56,034
66,536
62,612
71,315
68,930

$65,714
70,847
73,723
73,355
81,484
92,846
80,924
77,602
90,343
107,409
84,956
98,662

td
!>

W

o
i

Exhibit L

GOLD SETTLEMENT FUND
Amounts Received and Paid by the New York Federal Reserve Bank in 1922 in Settlement of
Accounts Due
From or to
Federal Reserve Banks:
Boston
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasurer of United States.
Federal Reserve Agent.. ..
Gold Redemption Fund. . .
Total 1922.

Received

Paid

Net gain or loss 1921.




Net Loss

M
I—I

Q
$4,333,808,864.70
4,441,623,613.40
2,244,756,712.55
1,786,741,665.23
790,767,660.39
4,402,465,851.29
969,665,261.33
460,268,148.97
652,483,435.13
472,680,071.98
1,643,207,833.58
318,774,620.00
230,000,000.00
5,000,000.00

$4,302,720,070.85
4,281,141,102.62
2,056,852,300.90
1,780,205,334.64
1,061,711,127.92
4,673,397,339.31
905,769,209.65
509,977,462.76
648,058,267.33
680,571,168.43
1,459.095,775.38
48,324,059.98
260,000,000.00
45,100,305.94

$22,752,243,738.55

$22,712,923,525.71

$908,895,884.57

a
a

$31,088,793.85
160,482,510.78
187,904,411.65
6,536,330.59

Net gain or loss 1922.
Total 1921.

Net Gain

$270,943,467.53
270,931,488.02
63,896,051.68
4^25.167.80
184,112,058.20
270,450,560.02

49J09,313.79
207,89i,09&45
30,000,000.00
40,100,305.94
$869,575,671.73

$39,320,212.84
$19,890,844,558.82

$19,806,688,228.29

$1,123,307,648.79
$84,156,330.53

$1,039,151,318.26

o

FEDERAL RESERVE BANK OF NEW YORK

61

Exhibit L—Continued

GOLD SETTLEMENT FUND
Net Gains and Losses Each Week During 1922 for the
Account of the Federal Reserve Bank of New York
(Amounts in thousands of dollars)
Week
Ended
Dec.28,1921
Jan. 4, 1922
11....
18....
25....
Feb. 1....
8.. . .
15....
21.. ..
Mar. 1....
8.. ..
15....
22....
29....
Apr. 5....
12....
19....
26....
May 3
10....
17....
24....
31.. ..
June 7....
14....
21....
28....
July 5....
12....
19....
26....
Aug. 2....
9....
16....
23....
30....
Sept. 6....
13....
20....
27....
Oct. 4....
11....
18....
25....
Nov. 1....
8.. ..
15....
22....
29....
Dec. 6
13....
20....
27....

Wire
Transfers
and Checks
Drawn

United
States
Treasury
Transfers

Other
Transferred

Net
Change

Balance

$855
+ 14,442
- 14,933
+ 32,568
- 37,828
- 27,786
1,191
+
8,120
- 20,221
3,743
- 55,080
- 59,476
+
2,768
- 31,464
+ 18,198
+ 14,232
+ 10,382
- 23,378
+ 23,442
+ 41,559
+
1,039
- 10,962
+ 24,015
- 30,999
-102,672
- 7,388
- 85,377
+ 13,776
- 11,779
+ 33,795
- 61,133
- 17,061
- 29,554
+ 21,342
+ 4,060
- 30,368
- 17,969
- 83,184
5,355
- 60,480
- 14,877
+
1,258
- 26,048
- 15,937
- 23,942
+ 13,313
+ 44,109
+ 17,664
- 30,091
- 16,230
9,521
+ 8,897

- $2,000
+ 8,500
- 5,000
- 4,000
- 8,000
- 3,000

-$22,269
- 4,530
- 27,702
1,036
+ 9,592
+ 6,750
180
- 31,146
+
931
+
172
+ 30,571

-$25,124
+ 18,412
- 47,635
+ 27,532
- 36,236
- 24,036
- 1,371
+ 18,974
— 19,290
+ 3,429
- 3,009
+ 28,293
+ 36,040
- 2,522
+ 12,981
+ 7,468
- 29,796
— 23,552
+ 20,152
+ 36,109
264
— 11,951
+ 23,353
- 34,319
+ 18,437
+ 22,736
- 86,067
+ 18,527
- 35,264
+ 39,521
- 13,311
- 18,330
- 16,984
+ 55,800
+ 4,483
- 33,993
+ 5,863
- 9,947
+ 53,085
- 21,726
+ 33,748
+ 72,731
- 5,869
+ 8,555
- 20,887
+ 10,829
+ 42,253
— 14,769
— 29,960
- 4,334
+ 33,021
- 36,577

$141,463
116,339
134,751
87,116
114,648
78,412
54,376
53,005
71,979
52,689
56,118
53,109
81,402
117,442
114,920
127,901
135,369
105,573
82,021
102,173
138,282
138,018
126,067
149,420
115,101
133,538
156,274
70,207
88,734
53,470
92,991
79,680
61,350
44,366
100,166
104,649
70,656
76,519
66,572
119,657
97,931
131,679
204,410
198,541
207,096
186,209
197,038
239,291
224,522
194,562
190,228
223,249
186,672




+ 42,000
+
+
+
+
+
-

7,000
21,500
88,000
34,000
30,000
6,000
7,000
11,000

-

4,000
5,000

231
728
- 1,058
+
783
+
236
- 29,178
—
174
+
710
450

500
+
+
+
+
+
+
+
+
+
-

3,000
3,000
120,500
27,000
3,000
5,000
3,000
5,000
76,000
4,000
14,000
3,000
2,000
2,000

+
+
+
+
+
+
+
+
+
-

80,000
20,000
36,000
12,000
55,500
19,000
23,000
5,000
500
5,000

500

+ 20,500
+ 43,000
+ 7,000

803
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
-

+
-

989
2,338
320
609
3,124
3,690
249
26,485
726
28,178
2,731
1,430
31,458
2,423
1,625
24,332
6,763
38,440
2,754
36,625
15,973
1,179
1,492
1,945
2,984
3,144
32,433

131
8,604
458
- 52,474

EIGHTH ANNUAL REPORT

62

Exhibit M

PERSONNEL AND ANNUAL SALARY RATE
Distribution by Departments, December 31, 1922
FUNCTION
Officers
Procedure Committee
Architectural Office
LAW FUNCTION
Legal Department
ACCOUNTS FUNCTION
Accounting Department
Methods and Supplies Department

Men

Women

40
2
6

Total
40
2
8

Salaries
(per annum
rates)
$495,200
7,500
30,413
2,660

90
30

75
11

165
41

266,560
69,340

ADMINISTRATION FUNCTION
Office Service Department
Personnel Service Department
Personnel Development Department

263
14
12

99
53
50

362
67
62

504,440
98,910
60,000

CASH AND CUSTODY FUNCTION
Cash Department
Custody Department

219
67

232
10

451
77

670,550
144,440

COLLECTION FUNCTION
Check Department
Collection Department
Clearance Arrangements
Northern New Jersey Clearing House
Association

240
163
1

369
152

609
315
1

677,940
378,960
4,000
4,500

FOREIGN RELATIONS FUNCTION
Foreign Department
LOAN FUNCTION
Credit Department
Discount Department
INVESTMENT FUNCTION
Bill Department
Securities Department
FISCAL AGENCY FUNCTION
Certificates of Indebtedness Department
Government Bond Department
Government Loan Organization Department
FEDERAL RESERVE AGENT'S
FUNCTION
Member Bank Relations Department.. .
Note Issues Department
Bank Examinations Department
Statistics Department
AUDITING FUNCTION
Auditing Department
TOTAL
BUFFALO BRANCH
Banking Departments
Fiscal Agency Department
GRAND TOTAL



15,500
27
27

10
21

37
48

64,720
82,780

2
26

16

2
42

5,800
72,960

17
92

5
84

22
176

43,580
276,160

115

80

195

285,960

1
2
10
27

2
1
2
30

6
3
12
57

19,420
5,880
28,560
105,180

67

11

78

166,880

1,574

1,316

2,890

$4,588,793

53
8

71
21

124
29

139,480
28,460

1,635

1,408

3,043

$4,756,733

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