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Thirty-fourth Annual Report

Federal Reserve Bank
of New York
For the Year Ended December 31, 1948

Second Federal Reserve District




FEDERAL RESERVE BANK
OF NEW YORK

A pril 1,1949

To the Stockholders of the
Federal Reserve Bank of New York:
I am pleased to transmit herewith the thirtyfourth annual report o f the Federal Reserve Bank
o f New York reviewing the year 1948.




A llan S prou l,

President.

2

CONTENTS
PAGE

The Outlook for Economic S tability............................................

5

National Economic Trends in 1948 ..............................................

11

Economic Trends in the Second D istr ict....................................

15

The Money S u p p ly..........................................................................

20

Federal Reserve Credit and Credit P o lic y ..................................

24

Corporate Finance and the Capital M arkets..............................

32

Municipal Financing ..............................................................

35

Foreign Economic and Financial Reconstruction......................

35

The European Recovery Program ......................................

35

The World-Wide “ Dollar Shortage” ..................................

40

The Bretton Woods Institutions..........................................

43

The United States Balance of P aym ents....................................

44

Developments in the Foreign Exchange M ark et........................

45

Foreign Relations of the Federal Reserve S y stem ....................

46

Volume and Trend of the Bank’s Operations..............................

49

Financial Statem ents.....................................................................

52

Statement of Condition ........................................................

52

Earnings and Expenses ........................................................

55

Changes in Membership ................................................................

57

Changes in Directors and O fficers................................................

58

Changes in Directors ............................................................

58

Changes in Officers ...............................................................

59

Member of Federal Advisory C ouncil..................................

59

List of Directors and Officers ......................................................

60

A Condensed Directory o f the B a n k ..............................................

62




3

CHARTS
PAGE

New Construction, 1945-48 ..........................................................

13

Income Payments in the Second Federal Reserve District . . .

19

Market Purchases or Sales of Government Securities by Non­
bank Investors, by Type of Issue ........................................

21

Member Bank Loans and Investments ......................................

22

Major Factors Affecting Member Bank Reserve Positions . . .

25

Federal Cash Receipts and Payments ......................................

26

Consumer Credit ............................................................................

31

Progress of European Recovery Program in 1948 ......................

37

Gold and Dollar Assets Held at the Federal Reserve Bank of
New York for Foreign and Certain International Accounts

47




4

Federal Reserve Bank of New York
Thirty-fourth Annual Report
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10

THIRTY-FOURTH A N N U A L REPORT

c
u
r
e
m
e
n
t s
o
f
4
b
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f
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p
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9
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( a
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FED ERAL RESERVE B AN K OF N E W YORK

m
U
o
S
d
d
e
i n

11

a

y
a
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National Economic Trends in 1948

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4
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s

TH IRTY-FOURTH A N N U A L REPORT

12

c
b
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t h
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h

n

d

FED ERAL RESERVE B AN K OF N E W YORK

s h
t w
i n
a
n
b
y
M
U
n
n
a
v
o
s i z
B
e
x
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s

t
s

e

w
m

r
u

NEW CONSTRUCTION, 1945-48
(Index numbers of dollar volume of work put in place;
1939 average = 1 0 0 per cent)
PERCENT

Source: U. S. Department of Commerce-




PERCENT

d

y

,

b
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d

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p

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14

TH IRTY-FOURTH A N N U A L REPORT

i n
m
l a
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m

v
o
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e

FED ERAL RESERVE B AN K OF N E W YORK

15

R
e
t a
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t r
a
d
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w
a
s
m
a
s
t h
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n
a
t i o
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w
a
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f i r s t
f a
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t e
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c o
s t
p
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16

TH IRTY-FOURTH A N N U A L REPORT

A
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d




FEDERAL RESERVE B AN K OF N E W YORK

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TH IRTY-FOURTH A N N U A L REPORT

18

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19

FED ERAL RESERVE B AN K OF N E W YORK

o
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e
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a
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t
t

t

e

t
h
t
a

CURRENT DOLLARS

s
h

PER CENT

25

J939

1943

1948

Source: Computed by Federal Reserve Bank of New York from U. S. Department of Commerce data; 1948
estimated from preliminary data.




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35

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30

1933

t

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40

1929

s

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e

PERCENTAGE OF
THE UNITED STATES TOTAL

r

f

f

n

b

e

e

but in recent years the District has ac­
counted for a lower proportion of total
_ United States income payments.

19 3 0 * 3 2 '3 4 '3 6 '3 8 '40 '4 2 *44*46 '4 8

e
i

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o

l
r

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INCOME PAYMENTS IN THE SECOND FEDERAL RESERVE DISTRICT
B IL L IO N S
OF DOLLARS

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n

THIRTY-FOURTH A N N U A L REPORT

20

T
I
t
W
d
v
d
t
v
d
S
t

n
e
h

h

1
i
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r

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l

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a

1939
1942
1944
1945
1946
1947
1948 p
p Preliminary.




33.8
54.8
85.1
98.9
106.0
109.3
109.6

n

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y
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t

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1

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p

l

s

u

f

i

n

r
r

Ratio of Gross National Product to Yearly Averages of Total
Demand Deposits Adjusted and Currency Outside Banks
(In billions of dollars)

Year

a

s

1 Demand deposits (excluding Government and interbank deposits, and adjusted for cash
items in process of collection) and currency outside the banks.

Total demand deposits
adjusted and currency
outside banks

t

“

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r

9

p

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h

Gross national
product (GNP)

Ratio of GNP to total
demand deposits
adjusted and currency
outside banks

90.4
159.6
212.2
213.4
209.3
231.6
254.9

2.67
2.91
2.49
2.16
1.97
2.12
2.33

n
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21

FED ERAL RESERVE B AN K OF N E W YORK

T
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“

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e

s
h

s
i

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n

r

d

OF D O LLA R S

1948
‘ Includes insurance companies, mutual savings banks, stock savings banks, and “all other investors."
Source: Treasury Bulletin, April 1948—March 1949.

B IL L IO N S

a
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t

e
s

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f

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k
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k
h

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a
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b

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t

u

(Cumulated monthly from December 31, 1947)

OF OOLLARS




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m
s
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w

MARKET PURCHASES OR SALES OF GOVERNMENT SECURITIES
BY NONBANK INVESTORS*, BY TYPE OF ISSUE
B IL L IO N S

e
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22

TH IRTY-FOURTH A N N U A L REPORT

a
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| 0 - 0 - J -

-

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-

LOANS

INVESTMENTS

r

100

80

60

40

20

0
1939
•Preliminary




1945

1946

1947

1948*

n
d

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e
d

OTHER
S E C U R ITIES

OTHER

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c
n

r
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a
t

— -----------

COMMERCIAL,
IN D U S TR IA L , &
AG RICULTURAL

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B IL L IO N S
O F D O LLA R S

b il l io n s

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w

2 Including savings banks but excluding Government agencies and trust funds.

O F DO LLARS

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23

FED ERAL RESERVE B AN K OF N E W YORK

A
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TH IRTY-FOURTH A N N U A L REPORT

24

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25

MAJOR FACTORS AFFECTING MEMBER BANK RESERVE POSITIONS
(Monthly averages of daily figures, 1945-48)
B IL L IO N S
OF O O LLARS

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TH IRTY-FOURTH A N N U A L REPORT

26

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TH IRTY-FOURTH A N N U A L REPORT

28

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30

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FED E R A L RESERVE B AN K OF N E W YORK

31

CONSUMER CREDIT
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TH IRTY-FOURTH A N N U A L REPORT

32

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FED ERAL RESERVE B AN K OF N E W YORK

33

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34

TH IRTY-FOURTH A N N U A L REPORT

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F ED ERAL RESERVE B AN K OF N E W YORK
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TH IRTY-FOURTH A N N U A L REPORT

36

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1 The appropriation of 4 billion dollars was authorized for the 15-month period ending
June 30, 1949, but it was specified that the entire amount could be obligated and ex­
pended during the 12 months ending April 2, 1949, if the President deemed such
action necessary. In November 1948 the President authorized the ECA to commit the
full amount by April 2, 1949. In addition to the 5 billion dollars for ERP, Congress made
available in 1948 an aggregate of 2,560 million dollars for other foreign aid programs,
including 1,443 million for Army relief in occupied areas; 400 million for aid to China;
225 million for aid to Greece and Turkey; and 492 million for a variety of other foreign
aid programs.
2 Of these guarantees, which were limited to 300 million dollars, virtually no use has
been made.




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FE D E R A L RESERVE B A N K OF N E W YORK

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PfcOORiSS O f iR P IN 1948
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Source: ECA releases and doily U. S. Treasury statements.
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United Kingdom.
4 The British-United States Zone of the Free Territory of Trieste was admitted to the
OEEC on October 14, 1948.




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THIRTY-FOURTH A N N U A L REPORT

38

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TH IRTY-FOURTH A N N U A L REPORT

40

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F ED ERAL RESERVE B AN K OF N E W YORK

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42

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43

FE D E R A L RESERVE B AN K OF N E W YORK
T h e B retton W

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1949, two loans aggregating 34.1 million dollars were made to two government agencies
in Mexico, and a loan of 75 million dollars was made to the Canadian-owned Brazilian
Traction, Light, and Power Company, Ltd., in Brazil.




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44

TH IRTY-FOURTH A N N U A L REPORT

The United States Balance of Payments

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45

FED ERAL RESERVE B AN K OF N E W YORK

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TH IRTY-FOURTH A N N U A L REPORT

46

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47

FEDERAL RESERVE B AN K OF N E W YORK

f
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-------------- 17




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GOLD AND DOLLAR ASSETS

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48

TH IRTY-FOURTH A N N U A L REPORT

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49

FED ERAL RESERVE B A N K OF N E W YORK

Volume and Trend of the Bank’s Operations

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THIRTY-FOURTH A N N U A L REPORT

50

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FED ERAL RESERVE B AN K OF N E W YORK

51

Some Measures of the Volume of Operations of the
Federal Reserve Bank of New York
1948
Number of pieces handled*
Discounts and advances ...............................................
Currency received and cou n ted ...................................
Coin received and counted ...........................................
Gold bars and bags of gold coin h an dled.................
Checks handled:
United States Government ch e ck s.......................
All o th e r ..................................................................
Collection items handled:
United States Government coupons p a i d ...........
All o th e r ..................................................................
Disbursements as fiscal agent for
Reconstruction Finance Corporation, its subsidi­
aries, and Commodity Credit Corporation
Issues, redemptions, and exchanges by fiscal agency
departments:
United States Savings bonds ...............................
All other United States obligations.....................
Obligations of the International Bank for Re­
construction and Development.....................
Safekeeping of securities:
Pieces received and delivered .............................
Coupons detached..................................................
Transfers of fundsf ....................................................
Incoming and outgoing mail:
Registered ..............................................................
Ordinary ..................................................................

2,720
978,239,000
1,759,625,000
317,000

1947
2,950 r
913,007,000
1,710,827,000#
472,000

40,444,000
338,976,000

42,033,000
304,893,000

6,162,000
5,634,000

6.663.000 r
4.682.000 r

30,000

60,000

22,597,000
3,158,000

23,221,000
3,834,000

190,000

284,000

4.243.000
1.551.000
225,000

11,585,000
1,590,000
212,000 r

472,000
9,376,000

507,000
8,980,000

Amounts handled
Discounts and advances................................................ $ 7,760,124,000
6.352.616.000
Currency received and counted ...................................
137,713,000
Coin received and counted ...........................................
4.184.698.000
Gold bars and bags of gold coin han dled.................
Checks handled:
United States Government checks .....................
20,687,994,000
All other ..................................................................
209,221,357,000
Collection items handled:
United States Government coupons paid ..........
1,519,420,000
All other ..................................................................
798,876,000
Disbursements as fiscal agent for
Reconstruction Finance Corporation, its subsidi­
aries, and Commodity Credit Corporation
500,266,000
Issues, redemptions, and exchanges by fiscal agency
departments:
United States Savings b o n d s .................................
2,505,974,000
All other United States obligations ...................
263,940,171,000
Obligations of the International Bank for Recon­
struction and Development ...........................
260,023,000
Safekeeping of securities:
460.507.275.000
Pieces received and delivered (par value) ..........
120.443.671.000
Transfers of fundsf ......................................................

$

5,729,077,000
5.731.126.000
137,674,000#
6.517.079.000

16,587,953,000
180,993,904,000
1,554,709,000 r
993,912,000 r
910,080,000
2,146,487,000
256,510,910,000
298,234,000
559,285,746,000
89.976,186,000

* Two or more checks, coupons, etc., handled as a single item are counted as one
piece •
# Change from previous Annual Report figures due to difference in method of counting
items.
f Includes wire and mail transfers; excludes Treasury transfers and Reserve Bank
interdistrict settlements,
r Revised.




TH IRTY-FOURTH A N N U A L REPORT

52

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A s s e t s o f th e F e d e ra l R eserve B a n k o f N e w Y o r k
(In thousands of dollars)

Assets

Dec. 31,1948

Dec. 31,1947

Gold certificates ................................................
Redemption fund for Federal Reserve notes

$ 7,390,440
55,182

$ 6,259,354
120,919

Total gold certificate reserves..........

$ 7,445,622

$ 6,380,273

Other c a s h ..........................................................

$

42,544

$

39,413

Discounts and advances ...................................

$

78,700

$

41,860

U. S. Government securities:
Bills ............................................................
Certificates ................................................
Notes ..........................................................
Bonds ..........................................................

$ 1,317,805
1,457,291
189,560
2,632,140

$ 3,270,067
1,482,995
322,183
622,496

Total U. S. Government securities. .

$ 5,596,796

$ 5,697,741

Total loans and securities.................

$ 5,675,496

$ 5,739,601

$

$

Due from foreign b a n k s...................................
Federal Reserve notes of other b a n k s............
Uncollected items .............................................
Bank premises ..................................................
Other assets........................................................
Total assets.........................................




8 ,0 2 2

35,252
$13,734,379
CO
CO

* After deducting participation of other Federal
Reserve Banks amounting to ....................

16*
20,331
507,096

30*
17,676
670,430
8,239
25,057

$12,880,719
$

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54

THIRTY-FOURTH ANNUAL REPORT

certificates of indebtedness and of Treasury notes declined, the former
principally as a result of cash redemptions, and the latter because of
a conversion of notes into certificates of indebtedness under Treasury
exchange offers.
Despite a 35 per cent increase in the volume of discounts and ad­
vances to member banks during 1948, the amount outstanding at the
end of the year was slightly below the level of December 31, 1947. The
net rise of 37 million dollars in this bank’s total discounts and advances
reflected a net increase in loans to foreign central banks secured by gold.
The volume of both uncollected items and deferred availability items,
the net of which represents the outstanding “ float” of this bank, de­
clined moderately. The item “ Other assets” increased 10 million dollars
owing to a greater volume of premiums paid and interest accrued on
Government securities.
Liabilities of the Federal Reserve Bank of New York

Liabilities

(In thousands of dollars)________________
Dec. 31,1947
Dec. 31,1948

Federal Reserve notes..................................

$ 5,582,297

$ 5,765,916

Deposits:
Member bank—reserve account ............
U. S. Treasurer—general account ........
Foreign ...............................................
Other ...................................................

$ 6,701,274
184,745
209,368*
430,977

$ 5,573,276
229,639
168,000*
472,411

$ 7,526,364

$ 6,443,326

$

$

Total deposits ..............................
Deferred availability items .........................
Other liabilities ..........................................
Total liabilities .............................

390,868
2,670

449,937
4,109

$13,502,199

$12,663,288

$

69,333
143,019
7,319
12,509

$

68,888
138,596
7,319
2,628

Total capital accounts ...................

$

232,180

$

217,431

Total liabilities and capital accounts

$13,734,379

$12,880,719

$

$

Capital accounts:
Capital paid i n .....................................
Surplus (Section 7) .............................
Surplus (Section 13b) .........................
Other capital accounts .........................

Contingent liability on bills purchased for
foreign correspondents .........................
Ratio of gold certificate reserves to deposit
and Federal Reserve note liabilities com­
bined ...................................................
* After deducting
Federal Reserve
t After deducting
Federal Reserve




participation of
Banks amounting
participation of
Banks amounting

other
to . .
other
to . .

l,065f

52.3%

56.8%
$

432,276
2,264

787f

$

223,720
1,673

FEDERAL RESERVE BANK OF NEW YORK

55

Federal Reserve notes (of this bank) in circulation, which usually
account for the major part of all currency in use in the District, de­
clined 184 million dollars during 1948. This was the first year-to-year
contraction in nearly two decades. Percentagewise it amounted to 3.2
per cent, compared with a decline of 2.7 per cent in the amount of
Federal Reserve notes in circulation in the country as a whole.
Member bank reserve accounts increased substantially during the
year, as the member banks complied with the regulations of the Board
of Governors of the Federal Reserve System requiring greater reserves
against net demand and time deposits. Deposits of foreign central banks
and governments increased 41 million dollars, reflecting an excess of re­
ceipts from gold transactions and other sources over disbursements to
the market. The deposits of the U. S. Treasury ended the year 45
million dollars lower than at the close of 1947. “ Other” deposit
balances at this bank fell by 41 million dollars owing to declines in
nonmember clearing account balances and in the balances of the Inter­
national Bank for Reconstruction and Development.
Capital accounts in the aggregate increased nearly 15 million
dollars during the year. Approximately 4% million dollars of net
earnings was added to the regular surplus (Section 7) and 10 million
was added to “ Other capital accounts” as reserves for contingencies.
Capital paid in, reflecting payments by member banks that increased
their own capitalization, rose about ^ million dollars.
The ratio of gold certificate reserves to combined deposit and
Federal Reserve note liabilities increased from 52.3 per cent at the
close of 1947 to 56.8 per cent on December 31, 1948, as the year’s gain
in the bank’s gold certificate reserves was proportionately greater than
that in deposits and note liabilities combined.
E a r n in g s

and

E xpenses

Gross earnings of the Federal Reserve Bank of New York rose to
a record level in 1948, increasing 34.3 million dollars to 73.2 million.
Increased income from Government securities was the cause of the
growth in earnings, a rise in the average rate of return more than
offsetting the effect on earnings of a decline in average holdings. The
higher rate of return on the Government security portfolio of the
bank reflected not so much the continued gradual firming in short­
term interest rates as the lengthening maturity of the portfolio. This
was the result of both cash redemptions of Treasury bills and certifi­
cates of indebtedness and of large net purchases of Treasury bonds.




THIRTY-FOURTH ANNUAL REPORT

56

Profit and Loss Account
For the Calendar Years 1948 and 1947

(In thousands of dollars)
1948

1947

Earnings ....................................................
Net expenses...............................................

$

73,223
16,467

$

38,907
15,014

Current net earnings......................

$

56,756

$

23,893

$

1,502
4

$

637
98

Total additions..............................

$

1,506

$

735

Deductions from current net earnings:
Reserves for contingencies, etc...............
All other ..............................................

$

9,884
4

$

64
6

Total deductions.............................

$

9,888

$

70

Net earnings ............................................

$

48,374

$

24,558

Paid United States Treasury (Section 13b) ..
Dividends paid ............................................
Paid United States Treasury (Interest on
Federal Reserve notes) ...........................
Transferred to surplus (Section 13b) ........
Transferred to surplus (Section 7) ...............

$

4,142

$

25
4,053

Surplus (Section 7) beginning of year........
Addition as above .......................................

$

138,596
4,423

$

136,549
2,047

Surplus (Section 7) end of year.................

$

143,019

$

138,596

Additions to current net earnings:
Profit on U. S. Government securities
sold (net) .........................................
All other ..............................................

18,368
65
2,047

39,809
4,423

Income from advances to member banks and from loans against gold
to foreign banks increased moderately as a result of the higher rates
charged during the year and the higher average volume of both types
of transactions.
The gain in current net earnings in 1948 as compared with 1947
amounted to 32.9 million, or 1.5 million less than the gain in gross
earnings, the difference being caused by an increase of 1.5 million in
net expenses, to 16.5 million. The rise in expenses reflected higher
salaries and generally heavier expenses of operation, including the in­
creased cost of supplying Federal Reserve currency and enlarged
assessments for the expenses of the Board of Governors of the Federal
Reserve System. Additions to current net earnings ($1,506,000),
almost entirely the result of net profits on U. S. Government securi­
ties sold, were $770,000 greater than in 1947. Deductions from current




57

FEDERAL RESERVE BANK OF NEW YORK

net earnings, however, increased to 9.9 million dollars, reflecting addi­
tions to reserves for contingencies.
Net earnings, after all adjustments but before dividends, totaled
48.4 million dollars for the year, or nearly double the 1947 net earnings
of 24.6 million. Out of the 1948 earnings, the usual statutory dividend
of 6 per cent, amounting to 4.1 million dollars, was paid to the member
banks, and 39.8 million dollars (21.4 million more than in 1947) was
transferred to the United States Treasury in payment of an interest
charge on Federal Reserve notes levied by the Board of Governors
of the Federal Reserve System under Section 16 of the Federal Reserve
Act. The balance of the year’s earnings, 4.4 million dollars, was trans­
ferred to the bank’s regular (Section 7) surplus account.

Changes in Membership
As a result of mergers of 14 member banks with other member
banks, there was a net decrease of 14 in the number of member banks
in the Second District during the year. At the year end there were
783 member banks in the District, and the ratio of member banks to
all banks was 87 per cent, unchanged from December 31, 1947. All
national banks were members, and 69 per cent of the State banks and
Number of Member and Nonmember Banks in
Second Federal Reserve District at End of Year*

(Exclusive of savings banks, private bankers, and industrial banks)
December 31,1948
Type of bank

December 31,1947

NonPer cent
NonPer cent
Members members members Members members members

National banks...............
State banks and
trust companies.......

532

0

100

538

0

100

251

115

69

259

117

69

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

783

115

87

797

117

87

Changes in Federal Reserve Membership in Second District during 1948

Total membership beginning of year....................................................

797

Increase:
State banks and trust companies admitted** ................................

1

Decreases:
Member banks combined with other members ..............................
Withdrawal from membership ......................................................

14
1

Total membership end of year.............................................................

783

* Banks in actual operation.
* * Also two nonmember banks were merged into member banks.




58

THIRTY-FOURTH ANNUAL REPORT

trust companies. One State bank, The Waddington Bank, Waddington,
N. Y., was admitted to membership during the year, and another State
bank, the Cranford Trust Company, Cranford, N. J., voluntarily with­
drew from membership. Two nonmember banks were merged with
member banks.
The 783 member banks in the District at the end of 1948 held
about 96 per cent of the total assets of all national banks, State banks,
and trust companies in the District, and the member State banks and
trust companies held about 93 per cent of the total assets of all State
banks and trust companies in the District.

Changes in Directors and Officers
In May 1948, the Board of Governors of the Federal Reserve
System appointed Robert T. Stevens, Chairman of the Board of J. P.
Stevens & Co., Inc., New York, N. Y., a Class C director for the
unexpired portion of the term ending December 31, 1950, and designated
him as Chairman and Federal Reserve Agent for the remainder of
1948. Mr. Stevens was redesignated as Chairman and Federal Reserve
Agent for the year 1949.
At a regular election in the autumn of 1948, Roger B. Prescott,
President of The Keeseville National Bank, Keeseville, N. Y., was elected
by member banks in Group 3 as a Class A director for a term of three
years, beginning January 1, 1949, to succeed Howard A. Wilson, Presi­
dent of the Citizens National Bank and Trust Company of Fulton,
Fulton, N. Y., whose term expired December 31, 1948. At the same
time, Jay E. Crane, a director of the Standard Oil Company (New
Jersey), New York, N. Y., was elected by member banks in Group 3
as a Class B director for a term of three years, beginning January 1,
1949, to succeed Carle C. Conway, Chairman of the Board of the
Continental Can Company, Inc., New York, N. Y., whose term expired
December 31, 1948.
The Board of Governors of the Federal Reserve System reappointed
William I. Myers, Dean of the New York State College of Agriculture,
Cornell University, Ithaca, N. Y., a Class C director for a term of three
years, beginning January 1, 1949, and redesignated him as Deputy
Chairman of this bank for the year 1949.
In December 1948, the directors of this bank appointed George G.
Kleindinst, President of the Liberty Bank of Buffalo, Buffalo, N. Y.,




FEDERAL RESERVE BANK OF NEW YORK

59

as a director of the Buffalo Branch for a term of three years beginning
January 1, 1949, to succeed Charles H. Diefendorf, President of The
Marine Trust Company of Buffalo, Buffalo, N. Y., whose term expired
December 31, 1948. The Board of Governors of the Federal Reserve
System reappointed Carl G. Wooster, of Union Hill, N. Y., as a director
of the Buffalo Branch for a term of three years, beginning January 1,
1949. Thomas Robins, Jr., was designated by the directors of this bank
as Chairman of the Board of Directors of the Buffalo Branch for the
year 1949. Mr. Robins is President of Hewitt-Robins, Incorporated,
Buffalo, N. Y.
Changes

in

O fficers

Robert H. Brome, formerly Assistant Counsel and Assistant Secre­
tary, who resigned as an officer of the bank during 1946, was reappointed
an officer of the bank with the title of Assistant Counsel, effective
April 30, 1948.
Donald J. Cameron, formerly Assistant General Auditor, was
appointed an Assistant Vice President, effective August 16, 1948.
Marcus A. Harris, formerly Manager, Government Bond Depart­
ment, and Manager, R. F. C. Custody Department, was appointed
Assistant General Auditor, effective October 1, 1948.
Walter C. Warner, Chief of the Credit Division of the Credit
Department, was appointed an officer of the bank, with the title of
Acting Manager, effective October 1, 1948 and was assigned to the
Credit and Discount Departments.
M em ber

of

F ederal A dvisory C o u n c il

At its meeting on January 6, 1949, the Board of Directors of this
bank selected W. Randolph Burgess, Chairman of the Executive Com­
mittee, The National City Bank of New York, New York, N. Y., to serve
for a third successive year as the member of the Federal Advisory
Council from the Second Federal Reserve District.




60

THIRTY-FOURTH ANNUAL REPORT

Directors and Officers
Class
A

1

A

2

A

3

B

1

B

2

B

3

DIRECTORS

Group

C
C

C

................................................................
Chairman of the Board, The Chase National Bank of the City
of New York, New York, N. Y.
F r e d e r ic E. W o r d e n ....................................................................
Chairman of the Board, and President, The National Bank of
Auburn, Auburn, N. Y.
R o g er B. P r e s c o t t .....................................................................
President, The Keeseville National Bank, Keeseville, N. Y.
L e w i s H. B r o w n ..........................................................................
Chairman of the Board, Johns-Manville Corporation, New
York, N. Y.
C h a r l e s E. A d a m s .....................................................................
Chairman of the Board, Air Reduction Company, Incorporated,
New York, N. Y.
J a y E. C r a n e ...............................................................................
Director, Standard Oil Company (New Jersey), New York,
N. Y.
R o b e r t T. S t e v e n s , Chairman, and Federal Reserve Agent........
Chairman of the Board, J. P. Stevens & Co., Inc., New York,
N. Y.
W i l l i a m I. M y e r s , Deputy Chairman .........................................
Dean, New York State College of Agriculture, Cornell
University, Ithaca, N. Y.
R o b e r t D. C a l k i n s .....................................................................
Director, General Education Board, New York, N. Y.
W i n t h r o p W . A l d r ic h

DIRECTORS — BUFFALO BRANCH

Term
expires
Dec. 31
1949
1950
1951
1949
1950
1951
1950
1951
1949

Term
expires
Dec. 31

Jr., Chairman ........................................................................................................
President, Hewitt-Robins, Incorporated, Buffalo, N. Y.
L e w i s B. S w i f t ...............................................................................................
President, Taylor Instrument Companies, Rochester, N. Y.
C a r l G. W o o s t e r .............................................................................................
Farmer, Union Hill, N. Y.
R a y m o n d F. L e i n e n ........................................................................................
Executive Vice President, Lincoln Rochester Trust Company, Rochester,
N. Y.
C. G e o r g e N i e b a n k ..........................................................................................
President, Bank of Jamestown, Jamestown, N. Y.
C l y d e C . B r o w n .............................................................................................
President, The Cuba National Bank, Cuba, N. Y.
G e o r g e G . K l e in d in s t ......................................................................................
President, Liberty Bank of Buffalo, Buffalo, N. Y.
T h o m a s R o b in s ,

MEMBER OF FEDERAL ADVISORY COUNCIL
W. R a n d o l p h B u r c e s s ,
Chairman of the Executive Committee, The National City Bank of New York,
New York, N. Y.




1949

1950
1951
1949
1949
1950
1951

FEDERAL RESERVE BANK OF NEW YORK

61

OFFICERS
A l l a n S p r o u l , President
L e s l i e R . R o u n d s , First Vice President
* E d w ard - 0 .

H erbert

L. W ern er K n ok e,
W a lte r

Vice President
Vice President
Vice President
Vice President, and

D o u g la s ,

H . K im b a ll,

S. L o g a n ,

General Counsel
T od d G . T i e b o u t ,

John

H . W illia m s ,

Economic Adviser

Vice President
Vice President
R o b e r t G . R o u s e , Vice President
V a l e n t i n e W i l l i s , Vice President
R e g i n a l d B . W i l t s e , Vice President
A r th u r

P h e la n ,

H a r o ld

V.

R o e ls e ,

R u f u s J. T r i m b l e ,

Assistant General Counsel

Assistant General Counsel

A. B i l b y ,
Assistant Vice President

H arold

H orace L . S a n f o r d ,

D o n a l d J. C a m e r o n ,

W illia m

Assistant Vice President

Assistant Vice President
F e l i x T . D a v is ,

O tto

Assistant Vice President
N orm an

F. S h eehan,

Chief Examiner
W . TenE yck,

Assistant Vice President

P . D a v is ,

W i l l i a m F . T r e ib e r ,

Assistant Vice President
S i l a s A. M i l l e r ,
Assistant Vice President

John

W il l ia m F . A b r a h a m s ,

S p e n c e r S . M a r s h , J r .,

Assistant Vice President, and Secretary
H . W u rts,

Assistant Vice President

Manager, Security Custody Department
C u r tis R . B o w m a n ,

Manager, Government Bond Depart­
ment, and Manager, RF.C. Custody
Department

Manager, Securities Department
M i c h a e l J. M c L a u g h l i n ,

Manager, Cash Custody Department
0 . E r nest M oo re,

Manager, Research Department

H a rry M . B oyd,

Manager, Safekeeping Department

F r a n k l in E . P e t e r s o n ,

Manager, Collection Department

R o b e rt H . B rom e,

Assistant Counsel

W a l t e r H . R o z e l l , J r .,

Manager, Foreign Department

W e s le y W . B u rt,

Manager, Savings Bond Department

R alp h W . S ch effer,

Manager, Check Department

J a m e s J. C a r r o l l ,

Manager, Personnel Department

C harles N . V a n H o u te n ,

J o h n J. C l a r k e ,

Manager, Government Check Department,
and Manager, Service Department

Assistant Counsel, and
Assistant Secretary
H o w a r d D . C r o s s e , Manager,
Bank Relations Department

W alter C. W arn er ,

Acting Manager, Credit Department, and
Acting Manager, Discount Department

P a u l R . F itc h e n ,

Manager, Cash Department

R o y E. W endell,

Manager, Check Department

W illia m A . H e in l,

Manager, Personnel Department

H aro ld M . W essel,

Manager, Accounting Department, and
Manager, Planning Department

P e te r P. L a n g,

Manager, Foreign Department
W illia m

In sley B.

OFFICERS — BUFFALO BRANCH
H alsey

S m it h ,

General Manager
G e o r g e J. D o l l ,

Assistant Cashier
' Mr. Douglas died on March 21, 1949.




General Auditor
Assistant General Auditor

H . D illis tin ,

M a rc u s A . H a r r is,

W .

Snow,

Cashier
M . M onroe M yers,

Assistant Cashier

62

THIRTY-FOURTH ANNUAL REPORT

A Condensed Directory
(as of January 31, 1949)
of the

FEDERAL RESERVE BANK OF NEW YORK
Head Office
PRESIDENT

A ll a n Sproul
FIRST VICE PRESIDENT

L e s lie R . R o unds

Functions and Departments
Accounting, Planning, and Service ..

Accounting Department...................
Planning Department ......................
Service Department ........................

Audit ...........................................................

Auditing Department ....................
Bank Supervision and Bank Relations

Bank Examinations Department ...
Bank Relations Department ............
Cash and Collections ............................

Officers in Charge
Vice President
Manager
H a r o l d M . W e s s e l , Manager
O t t o W . T e n E y c k , Assistant Vice President
C h a r l e s N . V a n H o u t e n , Manager

H e r b e r t H . K im b a ll,
H a r o ld M . W e s s e l,

W illia m
M arcu s

Collection Department ...................
Government Check Department.......

H a r r is,

R e g in a ld B . W i l t s e ,
W illia m

Vice President
Chief Examiner
Manager

F. Sh eeh a n ,

H ow ard D . C rosse,

Vice President
Assistant Vice President
F e l i x T . D a v i s , Assistant Vice President
P a u l R . F i t c h e n , Manager
M i c h a e l J. M c L a u g h l i n , Manager
R a l p h W . S c h e f f e r , Manager
R o y E . W e n d e l l , Manager
F r a n k l i n E . P e t e r s o n , Manager
C h a r l e s N . V a n H o u t e n , Manager

V a le n tin e W i ll i s ,
D o n a ld

Cash Department ...........................
Cash Custody Department ..............
Check Department .........................

General Auditor
Assistant General Auditor

H . D illis tin ,

A.

J.

C am eron ,

Vice President
Assistant Vice President
H o r a c e L . S a n f o r d , Assistant Vice President
P e t e r P . L a n g , Manager
W a l t e r H . R o z e l l , J r ., Manager
Foreign Funds Control Department .. N o r m a n P . D a v i s , Assistant Vice President
Relations with International Bank,
International Monetary Fund, and
Export-Import Bank .................... N o r m a n P . D a v is , Assistant Vice President

Foreign .......................................................

Foreign Department ........................




L. W ern er K n ok e,

H a r o ld

A.

B ilb y ,

FEDERAL RESERVE BANK OF NEW YORK
Functions and Departments
G overn m ent

B ond,

63

Officers in Charge

S a fe k e e p in g

S e c u r itie s , a n d R . F . C . C u s to d y

of

Vice President
Assistant Vice President
C u r t i s R . B o w m a n , Manager
C u r t i s R . B o w m a n , Manager
W e s l e y W . B u r t , Manager
H a r r y M. B o y d , Manager
W i l l i a m F . A b r a h a m s , Manager

. . A r th u r P h e la n ,
John H . W u rts,

G o v e rn m e n t B o n d D e p a r t m e n t .............
R . F . C . C u sto d y D e p a rtm e n t

.............

S a v in g s B o n d D e p a r t m e n t ........................
S a fe k e e p in g D e p a rtm e n t

...........................

S e c u rity C u sto d y D e p a r tm e n t

.............

Legal

.................................................................................

Loans

and

C r e d its

Vice President and
General Counsel
T o d d G . T i e b o u t , Assistant General Counsel
R u f u s J. T r i m b l e , Assistant General Counsel
R o b e r t H . B r o m e , Assistant Counsel
J o h n J. C l a r k e , Assistant Counsel

W a l t e r S. L o g a n ,

Vice President
Acting Manager
W a r n e r , Acting Manager

............................................. A r t h u r P h e l a n ,

C re d it D e p a rtm e n t

........................................

D isc o u n t D e p a rtm e n t

W a lte r

C. W arn er,

................................... W a l t e r C .

O p e n M a r k e t O p e r a tio n s , T r e a s u r y
I s s u e s , an d M a r g in R e g u la tio n s . . R o b ert G . R ou se,

Vice President
Assistant Vice President
W i l l i a m F . T r e ib e r , Assistant Vice President
S p e n c e r S . M a r s h , J r ., Manager
..................................... N o r m a n P . D a v i s , Assistant Vice President

Se cu ritie s D e p a rtm e n t

M a r g in R e g u la tio n s
P erson n el

................................

S ila s A . M i lle r ,

..................................................................... * E d w a r d O . D o u g l a s ,

P e rso n n e l D e p a r tm e n t

................................

Jam es

J.

W illia m
R esearch

and

S ta tis tic a l

R e se a rc h D e p a rtm e n t

S e c re ta ry ’s

O ffic e

...........................

...................................

H a r o ld

C a r r o ll,
A . H e in l,

V.

R o e ls e ,

0 . E rn est M oore,

................................................W i l l i a m
John

B u ffa lo

Vice President
Manager
Manager

Vice President
Manager

Secretary
Assistant Secretary

F . T r e ib e r ,
J. C l a r k e ,

B ran ch

GENERAL MANAGER
I n s le y B . S m ith

Operating Divisions

Officers in Charge

A c c o u n tin g , O ffice S e rv ice, S e c u ritie s . . . .

H a ls e y W . S n ow ,

B ank

M . M on roe M yers,

R e la tio n s

...........................................................

C a sh , C h e c k , C o lle c tio n , C re d it, an d
D is c o u n t
.....................................................................

* Mr. Douglas died on March 21, 1949.




G e o r g e J. D o l l ,

Cashier
Assistant Cashier

Assistant Cashier

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